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11-03-10 Board Packet (Part 2)
AGENDA ITEM 7d STAFF REPORT TYPE MEETING:Regular Board November 3,2010 SUBMITIED BY: APPROVED BY: (Chief) Frank Anderson,Utility Services Manager f fL Pedro Porras, Chief,Water Operations MEETING DATE: W.O.lG.F.NO:DIV.NO.All APPROVED BY:Manny Magana '~~ (Ass!.GM):Ii Assistant General Mager,Engineering &Operations SUBJECT:REQUEST THE BOARD TO AUTHORIZE THE GENERAL MANAGER TO EXERCISE THE FIRST YEAR OPTION OF THE AGREEMENT WITH PACIFIC METER SERVICES,INC.FOR MANUAL WATER METER RETROFIT TO RADIO READ METERS AND TO AUTHORIZE THE GENERAL MANAGER TO APPROVE SUBSEQUENT OPTION YEARS TWO THROUGH FOUR AT HIS DESCRETION. GENERAL MANAGER'S RECOMMENDATION: Request that the Board authorize the General Manager to exercise the first year option of the agreement with Pacific Meter Services,Inc.,for manual water meter retrofit to automated meter read meters (AMR),and to authorize the General Manager to approve subsequent option years two through four at his discretion. COMMITTEE ACTION: Please see Attachment "A". PURPOSE: To request the Board authorize the General Manager to options to an agreement with Pacific Meter Services, his discretion. exercise Inc.,at ANALYSIS: The Board approved a contract with Pacific Meter Services,Inc., .on August 5,2009 for retrofitting %"through I"manual-read meters with new AMR meters.Attached is the original contract approved by the Board.(Attachment "B") The Agreement provides price.Any increase is Consumer Price Index. will not change for the for an annual increase in the per-unit limited to increases in the San Diego The per-unit price of $32.98 per meter first option year. Based on bid price and Pacific Meter Services,Inc.' s performance during the initial year,it is recommended that the Board approve the District's renewal option to use the previously approved agreement to continue retrofiting meters through FYll and authorize the General Manager,at his discretion,to negotiate and approve subsequent option years two (2)through four (4) FISCAL IMPACT: $1,500,000 is included in the FYll Capital Improvement Plan Budget (CIP 2458)to continue the retrofit of the District's remaining manual read meters to AMR meters.This CIP proj ect also provides for contract labor for %inch and 1 inch meter retrofits,in-house retrofit of larger than 1 inch meters,and the purchase of AMR meters,gaskets and connection supplies.In FYll it is anticipated that approximately 4,500 meters of various sizes will be retrofitted. The total budget for this ten year AMR/Manual Meter Replacement CIP 2458 is $10,448,000.This ten year CIP started in December 7,2005.The approved budget for FYl1 is $1,500,000.The value of FY11 retrofit contract is $148,410 which staff has estimated is sufficient to cover the costs of contract labor for replacing approximately 4,500 meters for FY11. Total cumulative costs and commitments on this CIP to date is approximately $4/111/670.Therefore/the remaining approved CIP at this time is $6/336/330. 2 Staff has evaluated this CIP and has estimated that the current approved budget is sufficient to cover the costs for completing the remaining approximately 18,921 meter retrofits through 2014. The Finance Department has determined that 100%of the funding is available from the Replacement Fund. STRATEGIC GOAL. Strategy:Implement Field Technology solutions. Objective:Convert all manual-read water meters to radio-read (AMR)water meters. LEGAL IMPACT: None. Gerieral Manager Attachment "A",Committee Action Attachment "B",AMR Retrofit Contract 3 ATTACHMENT A AWARD OF A ONE (1)YEAR CONTRACT EXTENSION TO PACIFIC METER SERVICES,INC.FOR MANUAL WATER METER RETROFIT TO RADIO READ SUBJECT/PROJECT:METERS. COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on October 18,2010 and the following comments were made: •Staff is requesting that the Board authorize the General Manager to exercise the first year option of the agreement with Pacific Meter Services,Inc.(PMSI),for manual water meter retrofit to automated meter read meters (AMR),and to authorize the General Manager to approve subsequent option years two (2)through four (4)at his discretion. •This is a ten year AMR/Manual Meter Replacement CIP (2458)that began in December 7,2005 with a total budget of $10,448,000. Staff indicated that the Board approved an initial contract with PMSI on August 5,2009 for retrofitting ~"through 1"manual-read meters with new AMR meters.The contract included an approved four (4)additional one-year term renewals at the discretion of the District.A copy of the initial contract was provided to the Committee.(Attachment B) •Staff stated that prior to the approval of the August 2009 initial contract,PMSI had completed the contract for the District's FY 2008 AMR/Manual Meter Replacement CIP project. Staff indicated that so far a total of 9,000 manual water meters have been retrofitted to AMR meters. •To continue with the District'AMR/Manual Meter Replacement CIP project,the District included in its FY 2011 CIP Budget $1,500,000 and anticipates that approximately 4,500 meters of various sizes will be retrofitted in 2011.Staff indicated that the remaining 18,921 meter retrofits is anticipated to be completed by FY 2014. •Staff noted that the contract includes an annual increase in the per-unit price,but is limited to increases in the San Diego Consumer Price Index.It was indicated that there was no increase in the Index,so the contract's per-unit price of $32.98 per meter will remain the same for the first option year. •In response to a question from the Committee,staff stated that they are very pleased with the performance of PMSI and would like to increase their contract term from one-year to two (2)through four (4)year terms because it would be more efficient for the District as it would streamline the bidding process. •Staff noted that the District's AMR/Manual Meter Replacement CIP project was completed in different phases,as opposed to all at once,to evenly distribute future maintenance requirements (i.e. changing batteries when necessary)for AMR meters. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as a consent item. 5 Attachment 8 CONTRACT Project:WATER METER REPLACEMENT -FY 2010 Bid Submittal Date:June 18,2009 Award Date:August 5,2009 Amount ofContract:$148,410.00 THIS CONTRACT,made this A*BlJI2~day of A\18\'\S1 ,JdJDq ,by and between the Otay Water District hereinafter referred to as "District"and Pacific Meter Services, Inc.,hereinafter referred to as "Contractor", WITNESSETH: A.WHEREAS,District has caused specifications,drawings and other contract documents,hereinafter referred to as "Specifications",to be prepared for certain work on the referenced project;and B.WHEREAS,in addition to the tenns below,this Contract incorporates and includes the following: 1.Notice to Prospective Bidders 2.Instructions to Bidders 3.Supplemental Terms and Conditions 4.Specifications 5.Bid Form 6.Performance Bond 7.Bidder's Guarantee 8.Labor and Materials Bond 9.Contractor License Affidavit 10.Non-Collusion Affidavit 11.Bidder's Statement Regarding Insurance Coverage 12.Workers'Compensation Insurance Certificate C.WHEREAS,Contractor has offered to perform the proposed work in accordance with the tenns of said Specifications as set forth by submission ofthe Contractor's Proposal; NOW,THEREFORE,in consideration of the mutual covenants and agreements of the parties contained in said Specifications and Contractor's Proposal,which are made a part hereof as though fully set forth,Contractor hereby agrees to complete the work at the prices and on the Page 21 terms and conditions therein contained,and District hereby employs the Contractor and agrees to pay the Contractor the contract prices therein provided for the fulfillment of the work and the perfoffilance of the covenants therein set forth. IN WITNESS WHEREOF,this contract has been executed on the day and year first above written. ater District ATTEST: By Sture of Otay Water SecretarylNotary APPROVED AS TO FORM: Pacific Meter Services,Inc. M Co ractor's Signature Pr'€.s;cf~ Name &Title By ~)6~ Signature ofOtay Water District Counsel APPROVED AS TO CONTENT: By,~ --::?'§ignature of Otay Water District Purchasing Manager Page 22 Invitation to Bid "Water Meter Replacement -FY 2010" Submittal Deadline:10:00 am,Thursday,June 18,2009 The Otay Water District,hereinafter referred to as "District",hereby gives notice that sealed bids for the replacement and/or retrofitting of'l4,and I-inch water meters to radio read meters will be received and publicly opened at the District's Purchasing Office,located at 2554 Sweetwater Springs Blvd.,Spring Valley,CA 91978 at 10:00 a.m.,Thursday,June 18,2009. Those wishing to submit a bid are required to attend a mandatory pre-bid conference to be held in the District's Administrative Offices located at 2554 Sweetwater Springs Blvd.,Spring Valley, CA 91978,at 9:00 am,Thursday,June 4,2009.For information,please call the project manager at (619)670-2263. All bids must be complete and submitted on the bid forms provided by the District in the bid package.Submitted bids must be sealed in an envelope and clearly identified on the outside with the following:"IFB-WATER METER REPLACEMENT -FY-2010,Bid Opening:10:00 a.m., Thursday,June 18,2009" Telephone,telegraphic,faxed,electronic,or late bids will not be considered regardless of postmark or reason.Late bids will be returned to the bidder unopened. Bidders are encouraged to utilize emerging business enterprise (EBE)firms in the execution of the work identified herein.Bidders are encouraged to call the Contracting Opportunities Center at (619)285-7020 for infonnation on EBB firms. The District reserves the right to reject any and all bids,to waive any informality,and to make any award in the best interest ofthe District. BY:Stephen Dobrawa Purchasing Manager Gtay Water District (619)670 2226 Date:May 22,2009 Page 2 Instructions to Bidders General: The Otay Water District hereinafter referred to as "District",invites sealed bids for installation and retrofitting of%,and I-inch water meters in compliance with the District's "Specifications for Water Meter Replacement." Receipt and Form of Bid: Sealed bids for this request will be accepted at the purchasing office of the District located at 2554 Sweetwater Springs Blvd.,Spring Valley,CA 91978 until Submittal Deadline:10:00 am, Thursday,June 18,2009.All bids must be complete and submitted on the bid fonn provided by the District in this invitation. Telephone,telegraphic,faxed,electronic,or late bids will not be considered regardless of postmark or reason.Late bids will be returned to the bidder unopened. Bids must be enclosed in a sealed envelope bearing the name of the bidder,the name of this invitation and the time and date ofthe bid opening. Bids will be accepted only from Contractors with the applicable licenses for the trades and construction involved,issued by the State of California.Bidders must execute the attached Contractor License Affidavit. Modifications and Alternative Bids: Unauthorized conditions,limitations,or provisos attached to a bid will render it infonnal and may cause its rejection as being non-responsive.The completed bid form shall be without interlineations,alterations,or erasures. Discrepancies in Bids: In the event there is more than one bid item on a bid form,the bidder shall furnish a price for all items on the form.Failure to do so will render the bid informal and may cause its rejection.If the unit charge and extended charge on the bid form are inconsistent,the bidder will be bound by the unit charge and the extended charge will be corrected accordingly.In the event there is more than one bid item on a bid form and the total indicated for the form does not agree with the sum ofprices on the individual items,the prices bid on the individual items shall govern and the total for the form will be corrected accordingly,and the bidder shall be bound by said corrections. Withdrawal of Bid: The bid may be withdrawn by the bidder by means ofa written request,signed by the bidder or his properly authorized representative.Such written request must be delivered to the District's Purchasing Office prior to the scheduled closing time for receipt ofbids. Page 3 I I. Instructions to Bidders·Continued Award of Contract: Award of a contract,if it is awarded,will be made to the lowest responsible and responsive bidder.The low bidder will be determined by the lowest responsible bid for the Total Base Bid that complies with all the requirements prescribed in the bid/contract documents.Any such award will be made within 90 calendar days after opening ofthe bids. The District reserves the right to reject any or all bids,to waive any informality in the bid and to make any award ofcontract in the best interest ofthe District. Disqualification of Bidders: More than one bid from an individual,finn,partnership,corporation,or association under the same or different names will not be considered.Reasonable grounds for believing that any bidder is interested in more than one proposal for the work contemplated will cause the rejection of all proposals in which such bidder is interested.If there is a reason for believing that collusion exists among the bidders,all proposals will be rejected.All bidders must execute the attached non-collusion affidavit. The successful bidder shall be required to comply with all applicable Equal Opportunity laws and regulations. Supplemental Terms and Conditions: The successful bidder shall be required to meet and comply with the attached "Supplemental Tenus and Conditions". Insurance: Prior to any work perfonned,the successful bidder (should an award be made)must be able to furnish certificate(s)ofinsurance for the following: Comprehensive general/automobile liability insurance affording combined single limits of liability of not less than two million dollars ($2,000,000.00)per occurrence for bodily injury, personal injury,and for property damage. Worker's Compensation and Employer's Liability in full compliance with the laws of the State of California.Employer's liability shall be not less than one million dollars ($1,000,000.00). Bidders must complete the attached "Contractor's Certificate Regarding Workers Compensation". Page 4 Instructions to Bidders -Continued Prevailing Rate: The successful bidder shall pay workers at the prevailing wage rate of pay for all labor used in the delivery,unloading and installation of the project on the site for the category of work performed.The submittal of certified payroll documentation shall be required.Submittal of certified payroll documentation shall be made to the project manager on a bi-monthlybasis. State and Local Sales and Use Taxes: State and local sales and use taxes,as required by the laws and statutes of the State ofCalifornia and its political subdivisions,shall be paid by the Contractor.Prices quoted in the Bid shall include sales tax,unless provision is made in the Bid form to separately itemize the tax. Naming of Subcontractors: The Bidder shall submit the Bid with the names and business addresses of each subcontractor who will perform work under this Contract in excess ofone percent (1 %)of the amount of the total bid,and shall list the portion of the work which will be done by such subcontractor.If Bidder fails to specify a subcontractor for any portion of the work to be performed under the Contract,the Bidder agrees to perform that portion of the work.No subcontractor shall be substituted for those listed without prior District's approval. Bid Bond: Bids must be accompanied by cash,a certified check or cashier's check drawn on a bank in good standing,or a bid bond issued by a Surety authorized to issue such bonds in the State of California,in an amount not less than ten (10)percent ofthe total amount of the Initial Year Bid submitted.This bid security shall be given as a guarantee that the Bidder will not withdraw the Bid for a period ofninety (90)calendar days after bid opening,and that if awarded the Contract, the successful Bidder will execute the attached Contract and furnish the Documents specified in the Contract documents.The Attorney-in-Fact (Resident Agent)who executes this bond in behalf of the Surety must attach a notarized copy of his power-of-attorney as evidence of his authority to bind the Surety on the date ofexecution ofthe bond. Ifthe bidder elects to furnish a Bid Bond,he shall use the Bid Bond form attached herewith,or one conforming substantially thereto in form and content. Performance Bond: The successful Bidder shall file annually for the term (one-year),and upon annual renewal,if renewed,with the District a Perfonnance Bond on the Form attached herewith in the full amount of the Contract price,as security of the faithful perfonnance of the Contract for the construction ofthe work,and to cover all guarantees against defective workmanship or materials,or both,for a period of one (1)year after the date offinal acceptance ofthe work by the District. Page 5 Instructions to Bidders -Continued The Surety furnishing this bond shall have a sound financial standing,be authorized to do business in the State of California and either submit those documents as set forth in California Code ofCivil Procedures,§995.660 items (1)through (4),or have a Best Rating of A VII. Labor and Materials Bond: The successful Bidder shall file annually for the tem1 (one-year),and upon annual renewal,if renewed,with the District at the time of execution of the Contract,a Labor and Materials Bond of the form attached herewith in the amount of one hundred (100)percent of the Contract price, as surety for the payment ofall persons supplying labor and materials for the construction of the work.The Surety furnishing this bond shall have a sound financial standing,be authorized to do business in the State ofCalifornia and either submit those documents set forth in California Code ofCivil Procedures,§995.660 items (1)through (4),or have a Best rating ofA VII. Power-of -Attorney: The Attorney-in-Fact (Resident Agent)who executes the Performance Bond or Labor and Materials Bond in behalf ofthe Surety must attach a notarized copy of his power-of-attorney as evidence ofhis authority to bind the Surety on the date ofexecution ofthe bonds. Failure to Execute Contract and Furnish Bonds: The Bidder who is awarded a Contract and who fails to promptly and properly execute the Contract and furnish the prescribed bonds shall forfeit the bid security that accompanied the bid. The bid security shall be retained as liquidated damages by the District and it is agreed that this sum is a fair estimate of the amount ofdamages the District will sustain in case the Bidder fails to enter into a Contract and furnish bonds as herein before provided. Additional Work Discovered: In the event that during the performance ofthe work described herein,additional and necessary work is discovered;the successful bidder agrees to be bound to the terms and conditions for performing and invoicing such work,as may be approved by the District's project manager,as identified herein or in attachments referenced as being part ofthis contract. If additional and necessary work is identified,the successful vendor shall consult with and inform the Otay Water District's project manager,for this project,the scope and necessity of additional work discovered.Under no circumstances shall the successful bidder perform additional work unless instructed to do so in writing by the Otay Water District's project manager. Page 6 Instructions to Bidders -Continued Compliance with Fair Employment Practice Act: Contractor agrees in accordance with §1735 and §1777.6 of California Labor Code,and the California Fair Employment Practice Act (Sections 1410-1433)that in the hiring ofcommon or skilled labor for the performance of any work under this contract,or any subcontract hereunder, no Contractor,material supplier or vendor shall,by reason of race,color,national origin or ancestry,or religion,discriminate against any person who is qualified and available to perform the work to which such employment relates. Rights Reserved: a)Rejection of Work.Contractor agrees that the District has the right to make all final determinations as to whether the work has been satisfactorily completed. b)Completion ofWork.If Contractor fails to comply with the conditions ofthe contract,or fails to complete the required work or furnish the required materials within the time stipulated,the District reserves the right to purchase in the open market or to complete the required work,at the expense of the Contractor,including but no limited to,by recourse to provisions of the performance bond if such bond is required under the conditions ofthis bid. Pre-Bid Conference (mandatory): A mandatory pre-bid conference will be conducted by the District's project manager for this project on June 4,2009,at 9:00 a.m.Prospective bidders shall meet at the District's Administrative Offices,2553 Sweetwater Springs Blvd.,Spring Valley,CA 91978.For questions concerning this mandatory meeting,call (619)670-2263.Bidders must attend the mandatory conference to be eligible to bid. Pre-Construction Meeting The Contractor shall not commence work until a meeting between the representatives of the Contractor and the District is held.The meeting will be held at the District's Operation Offices, 2553 Sweetwater Springs Blvd.,Spring Valley,CA 91978,at a time and date later to be determined. End of Section Page 7 Supplemental Terms and Conditions Whereas,Vendor/Contractor,and Purchaser desire to enter into an agreement relating to the construction,installation or repair work described on the attached purchase order,and Whereas,Vendor/Contractor,and Purchaser understand that in certain important respects the terms and conditions on the purchase order are insufficient to cover this kind ofwork,and Whereas,Both parties desire to supplement those terms and conditions with this agreement, NOW THEREFORE,Vendor/Contractor and Purchaser agree that these supplementary terms and conditions shall become a part ofthe contract entered into between Vendor/Contractor and Purchaser as more fully described in the attached purchase order and any other documents specifically referenced in such purchase order. 1.These Terms Supplement the Printed Terms and Conditions on the Invitation to bid.The terms and conditions contained in the attached Invitation for Bid shall be supplemented by these terms and conditions.To the extent these terms and conditions are inconsistent with the tenus and conditions contained in the Invitation to Bid,the tenns and conditions in the Invitation to Bid shall govern. 2.Scope of Work.The Vendor/Contractor,as promptly and as economically as practicable,shall perfonn all necessary engineering services,shall procure,order and furnish all ofthe required materials,labor and equipment,and perform all of the services necessary for the construction,installation and completion of,and shall construct,install and complete all of the work called for and described in this purchase order and in any specifications,drawings and other descriptive data that may be referred to herein and attached hereto (all hereinafter referred to as the "contract"). 3.Time of Completion.The work to be performed under this contract by the Vendor/Contractor shall be commenced within 10 calendar days of a Notice to Proceed issued by the Purchase and shall be complete in accordance with the specifications within 180 calendar days of the notice to proceed.If,however,the Vendor/Contractor is delayed in the performance or completion ofthe work under this contract by labor strikes, lock-outs,fire,rain,unavoidable casualties,or other causes beyond the control of the Vendor/Contractor and without its fault or negligence,then the time for the performance or completion of said work may be extended for a reasonable period to allow therefore, but any extensions for a period of seven (7)days or more shall be valid only if the same is in writing signed by the Purchaser. 4.The Contract Sum.The Purchaser shall pay the Vendor/Contractor for the performance of the work under this contract the sum set forth herein (hereinafter referred to as the "Contract Sum"). Page 8 Supplemental Terms and Conditions -Continued 5.Payment.Unless otherwise provided in this contract,the Contract Sum shall be due forty-five (45)days after the work is finally completed in accordance with the specifications;provided,however,that said payment shall not be due until the Vendor/Contractor has delivered to the Purchaser a complete release of all liens arising out of this contract,or receipts in full covering all labor and materials for which a lien could be filed,or a bond satisfactory to the Purchaser indemnifying it against any lien. 6.Changes,Alterations and Modifications.Purchaser may,at any time by written order and without notice to Vendor/Contractor's sureties or assigns,change the extent of the work covered by this contract,the drawings,specifications or other description herein,or the time ofcompletion.In connection with any such written order,Purchaser may issue a written stop work order with which Vendor/Contractor shall fully comply,and Vendor/Contractor shall be excused from proceeding with the work as changed only so long as such stop work remains in effect.Promptly upon receipt of the details of any such change,Vendor/Contractor shall either advice that the change will not affect its costs,or furnish:(1)a breakdown of estimated cost and changes in the Contract Sum attributable thereto,and (2)a statement of any necessary changes in the time of completion.Vendor/Contractor's failure to advise Purchaser within ten (10)days of the effect on any change hereunder shall constitute Vendor/Contractor's consent to conform to the change without increase in the Contract Sum,or without change in other terms and conditions of this contract.The "written order"authorized by this article shall be effective notwithstanding the absence of Vendor/Contractor's formal written acceptance thereof If the change causes a material increase or decrease in costs,then an equitable adjustment ofthe Contract Sum herein to be paid to Vendor/Contractor shall promptly be negotiated by Purchaser and Vendor/Contractor and incorporated in an amendment to this contract. 7.Materials and Employees.Unless otherwise specified,all materials shall be new,and both workmanship and materials shall be of good quality.The Vendor/Contractor shall, ifrequired by Purchaser,furnish samples or other satisfactory evidence as to the kind and quality of materials as directed by the Purchaser,and all materials as directed by the Purchaser,and all materials thereafter furnished by the Vendor/Contractor shall be in strict accord with such approved samples. The Vendor/Contractor shall at all times enforce strict discipline and good order among its employees,and shall not employ on the work any unfit person or anyone not skilled in the work assigned to him. Page 9 Supplemental Terms and Conditions -Continued 8.Defaults. a.The Vendor/Contractor shall pay the costs ofthe work as they are incurred. b.If the Vendor/Contractor shall fail to pay any ofthe costs properly incurred by it, the Purchaser shall have the right to pay such costs directly,upon 24 hours written notice to the Vendor/Contractor,and deduct such costs from the Contract Sum. c.If the Vendor/Contractor should fail in the prosecution of the work under this contract,to perform any provision of this contract,the Purchaser may serve a notice in writing upon said Vendor/Contractor to remedy such failure,and upon the refusal or neglect of the Vendor/Contractor for a period of two (2)working days to remedy such failure,the Purchaser shall be entitled to remedy such deficiency,and any cost thereby incurred by the Purchaser shall be paid from the account ofthe Vendor/Contractor and deducted from the Contract Sum. 9.Set Offs.Vendor/Contractor agrees that Purchaser shall have the right to set off any amounts which may become payable by Purchaser to Vendor/Contractor under this contract to othelwise,any amounts which Vendor/Contractor may owe the Purchaser, whether arising under this contract or otherwise. 10.Protection of Work,Property and Persons.It is specifically understood and agreed that during the progress of the work under this contract,the Vendor/Contractor shall take extreme precautions against the possibility of fire on the Purchaser's property and maintain adequate protection of the work,adjacent property,and public,and shall be responsible for any damage or injury due to its act or neglect.Any other provisions in this contract to the contrary notwithstanding,the Vendor/Contractor hereby assumes entire responsibility and liability for any and all damage or injury of any kind or nature whatsoever (including death or personal injury resulting there from)to all persons, whether employees of the Vendor/Contractor,or otherwise,and to all property,caused by,resulting from,or arising out of the Vendor/Contractor's negligence or that of its agents or employees. d.Any expense or cost arising out ofthe Vendor/Contractor's negligence,or that of its agents or employees,for replacing defective work,for damage to property,and for the disposal ofmaterial wrongly supplied,may be paid by the Purchaser from the account ofthe Vendor/Contractor and deducted from the Contract Sum.I' 11.Title of Work.The title to all work completed or in the course of construction,and all materials on account of which any payment had been made by the Purchaser to the Vendor/Contractor,shall be in the Purchaser. Page 10 Supplemental Terms and Conditions -Continued 12.Inspection.The Purchaser shall have access to and the right to inspect all work in the course ofconstruction. 13.Subcontracts.The Vendor/Contractor agrees to obtain the agreement of every subcontractor to be bound to the terms and conditions materially and substantially comparable to those contained herein,including prevailing wages and insurance,unless otherwise authorized and approved by the Purchaser. 14.Separate Contracts.The Purchaser shall have the right to let other contracts in connection with this work or other work and the Vendor/Contractor shall afford other vendors or contractors reasonable opportunity for the execution of their work and shall properly connect and coordinate its work and theirs. 15.Use of Premises.The Vendor/Contractor shall confine its apparatus,the storage of materials and the operations of its workmen to limits indicated by law,ordinances or permits,and shall not unreasonably encumber the premises with its materials.Before storing any materials or apparatus,or before constructing any temporary work shanty or workshop upon the Purchaser's premises,the Vendor/Contractor shall obtain clearance from the Purchaser in writing designating the location and space on the Purchaser's premises for such storage.In addition,before the Vendor/Contractor moves or relocates any storage area or temporary shanty or workshop,it shall obtain similar clearance in writing from the Purchaser designating new or additional space on the Purchaser's premises. 16.Permits and Regulations.Before commencing the performance of any of the work under this contract,the Vendor/Contractor shall supply all necessary building pennits for the erection of permanent structures,all other permits and licenses as may be necessary, and before and during the progress of work under this contract,give all notice and comply with all the laws,ordinances,rules and regulations ofevery kind and nature now or hereafter in effect promulgated by any Federal,State,County of other Governmental authority,relating to the perfonnance or work under this contract,and if the Vendor/Contractor performs any work that is contrary to any such law,ordinance,mle or regulation,it shall bear all the costs arising there from.In the event that the Vendor/Contractor is unable to procure the necessary permits,as aforesaid,the Purchaser shall have the option to cancel this contract without any liability whatsoever,or the Purchaser may procure the pennits,and the costs thereof shall be deducted from the Contract Sum.Vendor/Contractor specifically agrees to abide by and observe all standards or regulations of the Occupational Safety and Health Administration which are applicable to the work being performed. 1 7 .Indemnification and Insurance.Vendor/Contractor shall indemnify and hold harmless the Purchaser and its agents and employees from and against all claims,damages,losses and expenses,including attorney's fees,arising out of or resulting from performance of the work,provided that any such claim,damage,loss or expense (1)is attributable to Page 11 Supplemental Terms and Conditions -Continued bodily injury,sickness,disease,or death,or to injury or destruction of tangible property (other than the work itself)including the loss of use resulting there from,and (2)is caused in whole or in part by any negligent act or omission of Vendor/Contractor,any subcontractor,anyone directly or indirectly employed by any ofthem or anyone for those acts,any ofthem may be liable. During the performance of this contract,Vendor/Contractor shall,at is cost,provide and maintain Compensation and Employer's Liability Insurance,General Liability Insurance (in an amount not less than $5,000,000.00,including automobile)and such other coverage as may be necessary to provide for the above indemnification. Vendor/Contractor shall furnish certificates of insurance,satisfactory to the Purchaser, evidencing such insurance coverage prior to commencement of the work.Certificates submitted must reference the purchaser's project name and work order number as shown on contract documents. 18.Assignment.None of the sums due or to become due,nor any of the work to be performed under this contract shall be assigned,nor shall Vendor/Contractor subcontract any substantial portion ofthis contract without Purchaser's prior written consent. 19.Cleaning Up.The Vendor/Contractor shall at all times keep the premises free from accumulations of waste material or rubbish caused by its employees or work,and at the completion of the work,it shall remove from the premises all rubbish,implements and surplus materials and shall leave the premises broom clean. 20.Termination. a.Anything in this contract to the contrary notwithstanding,if Vendor/Contractor should so fail to make progress as to endanger performance of this contract in accordance with its terms and conditions,or if it should fail to make prompt payments to subcontractors or for material or labor,or violate any laws,ordinances or regulations,or otherwise violate any provisions of this contract,then the Purchaser may,without prejudice to any other right or remedy,telIDinate this contract in whole or from time to time in part upon written notice and proceed to complete or cause the work to be completed;and the Purchaser may deduct the cost of completing the said work from payments then or thereafter due to the Vendor/Contractor,who shall pay the Purchaser any amount by which such cost of completion shall exceed the unpaid monies due or to become due to the Vendor/Contractor. b.In addition to the provisions ofparagraph (a),the Purchaser shall have the right to terminate this contract without cause upon five days written notice to the Vendor/Contractor,but in that event,Purchaser shall pay to the Vendor/Contractor a proportionate amount ofthe Contract Sum,as amended,based upon the Page 12 Supplemental Terms and Conditions -Continued percentage ofthe completion ofthe work under this contract and any amendment hereto. 21.Vendor/Contractor's Guarantee.The Vendor/Contractor hereby guarantees to the Purchaser that all work perfonned hereunder shall be free from all defects of any kind, nature or description the date ofthe completion thereof and for a period ofone (1)year, the Vendor/Contractor hereby (a)indenmifies and holds harmless the Purchaser from and against a1lloss or damage arising out of or in connection with any such defects,and (b) agrees on notice from the Purchaser to the Vendor/Contractor forthwith to remedy and cure any such defect or defects as the sole cost and expense to the Vendor/Contractor. 22.Approval of Plans and Specifications;(ownership of Documents,Designs,Etc.)All plans and specifications drawn up by the Vendor/Contractor shall be submitted to the Purchaser for written approval prior to commencement of work or procurement of materials.Copies of such plans and specifications shall be furnished to the Purchaser, and an designs,plans and specifications,improvements,inventions and all rights appertaining thereto,developed by the Vendor/Contractor in the course of performance under this contract,shall be promptly disclosed to,and shall become the sale and exclusive property of the Purchaser.All drawings,specifications or other documents, whether tracings or originals,furnished by the Purchaser to the Vendor/Contractor shall remain the property of the Purchaser and the Vendor/Contractor shall make no copies or use of such drawings,specifications or documents except in perfOlIDance of the work called for by this contract.All such documents shall be returned to the Purchaser upon completion or temlination ofthis contract. 23.Cost Breakdown.If required by the Purchaser,the Vendor/Contractor agrees to make available to the Purchaser within 10 days after the completion of the work under this contract,such books,records,receipts,vouchers or other data as may be deemed necessary by the Purchaser to enable it to arrive at appropriate cost figures for the purpose of establishing depreciation rates for the various materials and other elements which may have been incorporated into the work performed under this contract. 24.Taxes.Vendor/Contractor agrees that,unless otherwise indicated in this contract,(a)the Contract Sum does not include any state or local sales,use or other tax from which an exemption is available for purposes ofthis contract,and (b)the Contract Sum includes all other applicable federal,state,and local taxes in effect at the date of this contract. Vendor/Contractor agrees to accept and use tax exemptions certificates when supplied by Purchaser ifacceptable to the taxing authorities.In case it shall ever be determined that any tax included in the Contract Sum was not required to be paid by Vendor/Contractor, Vendor/Contractor agrees to notify Purchaser and to make prompt application for the refund thereof,to take all proper steps to procure the same and when received to pay the same to the Purchaser. Page 13 Supplemental Terms and Conditions -Continued 25.Miscellaneous. a.The terms "work"and "work under this contract"include labor and materials required for the perfonnance ofthis contract. b.Written notice under this contract,shall be deemed to have been dilly served when delivered in person to the individual or to a member ofthe firm or to an officer of the corporation far whom it is intended,or if sent by registered mail or by telegram to the Vendor/Contractor at the address shovvn herein,or ta the Purchaser at the address shown herein to the attention ofthe person executing this contract. c.Failure of either party to this contract to enforce any provision of this contract shall not be deemed a waiver of such provisions or of subsequent failure to comply with any such provision. d.This contract may not be altered or amended in any way whatsoever,except in writing signed byboth ofthe parties hereto. e.This contract shall be construed,interpreted,and the rights of the parties detennined in accordance with the laws ofthe State ofCalifomia. End ofSection Page 14 SPECIFICATIONS METER REPLACEMENT -FY 2010 Specifications and Site of Work,Inspection of: It is the responsibility of the Bidder to carefully and personally examine the specifications and site of the proposed work,access to the work,aboveground and underground utilities,buildings, structures or other improvements that may be within the limits of the work or adjacent to the work and which mayor may not be shown on the plans,public safety and traffic requirements and applicable pennits,if required.Bidders are required to inspect the site of work in order to judge for themselves,by personal examination or by such other means,as they may prefer,ofthe location and as to the actual conditions of and at the site of work and the proposed work and the nature and extent of the work to be done.If,during the course of the site inspection a bidder finds facts or conditions which appear to conflict with the letter or spirit of the contract documents,or with any other furnished data,the bidder may apply to the District for additional information and explanation before submitting a bid. Scope: The successful contractor (contractor)will provide the necessary labor,expertise,and tooling to retrofit up to 4,500 (four thousand,five hundred)existing 1'4,and I-inch water meters to the District's RTR standard.The District's standard shall be provided during the mandatory pre-bid meeting and job walk identified within this invitation to bid.The work will require the replacement of the water meter (meter)and installation of RTR components within the meter box.In addition,installations may require the replacement/installation of ball valves,meter stops,meter registers,meter stops (under pressure),and/or meter boxes.For an amount estimated to be less than 50 units,the contractor may be required to replace meter saddles with District supplied meter stops. Traffic Control: Ifrequired,the contractor shall furnish all required permitting and install traffic control in areas affected by the work identified herein.Installation shall be in compliance with the Federal,State ofCalifornia,and local laws and regulations governing such work. Meter Location: The location of meters required to be retrofitted will be through maps that will be provided during a mandatory pre-bid conference as indicated in the published "Notice to Prospective Bidders"and within this invitation to bidders. Page 15 SPECIFICATIONS-Continued Contractor's Rejection of Work: The contractor will be allowed to identify and reject up to but no more than 2%of the meters identified within each area designated for retrofit.Rejected meters must be identified and the contractor must provide a list ofrejected meters and reasons for rejection to the District's project manager prior to the end ofwork within the specified area. Door Hangers The contractor may be required to post District supplied notice,on the address (residence or business)to which work is to be performed,not less than 24 hours nor more than 48 hours prior to the commencement ofwork affecting said address. Material: The contractor must provide all necessary materials,except those identified as supplied by the District,to complete the work.All materials supplied must be in compliance with District specifications contained within the "Water Agency Standards". Materials Supplied by District: The District will provide all meters,meter registers,meter boxes and lids,RTR devices and connectors,tubing,ball valves,meter stops,and meter gaskets as required to complete the work identified herein.It shall be the responsibility of the contractor to provide any miscellaneous materials,supplies,and equipment as maybe required to execute the work identified herein. Inspection of Work: The District will assign a project manager to this work.The project manager shall act as the District's inspector for this project. Records: The Contractor shall keep a daily written log and shall provide a weekly spreadsheet ofthe work perfonned,including the meters rejected,problems noted,special work required,and breakages experienced.Copies of the Contractor's written log and weekly spreadsheet must be provided to the project manager prior to the end of work.Reports must be submitted no later than the Monday immediately following the week in which the work is performed.The District will not accept the work performed prior to accepting the written reports required under this specification. Page 16 SPECIFICATIONS-Continued When requested by the project manager,the contractor will be required to submit spreadsheets on a more frequent basis.In this event,the project manager will provide 48 hour notice ofwhen requested spreadsheets are due. Warranty by Contractor: Contractor shall fully warrant all work and materials provided by the Contractor against poor and inferior quality or workmanship for a period ofnot less than 12 months from the District's final acceptance ofwork.Time is of the essence of this contract.Contractor shall repair or replace any inoperable materials orequipment in a timely manner during warranty period. -END OF SPECIFICATIONS - Page 17 To: From: OTAY WATER DUSTRICT Amended 6/11/09 CONTRACTOR'S BID FORM Submittal Deadline:10:00 am Thursday,June 18,2009 Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA,91978 JL:.iJjz rtft<.re y-5:"i2-r YIC oI?,5"h e- Name ofBidder S?()yy.Plv........b &c.'"r-+-#r£7 Mailing Address f2.Jl we .nV [9,5-07 City,State &Zip The undersigned Bidder agrees he will contract with the Otay Water District to provide all necessary labor,supervision,machinery,tools,apparatus and other means of construction to do all the work and furnish all the materials specified in the contract in the manner and time therein prescribed,and that he will take in full payment the amount set forth hereon. For METER REPLACEMENT -FY 2010 in its entirety,all Addenda,and the following documents by this reference are hereby made a part ofthis contract: 1.Notice to Prospective Bidders 2.Instructions to Bidders 3.Supplemental Terms and Conditions 4.Specifications 5.Bid Form 6.Contract 7.Performance Bond 8.Bid Security Bond 9.Bidder's Guarantee 10.Labor and Materials Bond 11.Contractor License Affidavit ]2.Non-Collusion Affidavit 13.Bidder's Statement Regarding Insurance Coverage 14.Workers'Compensation Insurance Certificate Bidderacknowledges receipt ofAddenda Number(s)~---J _,and _. ~ CONTRACTORtS BID FORM-Continued The cost of all labor,material,and equipment necessary fOT the completion ofthe work itemized,even though not shown or specified,shall be included in the unit price for the various items shown hereon. The Otay Water District reserves the right to increase or decrease the quantity ofany item or omit items as may be deemed necessary and the same shall in no way affect or make void the contract.When increases ordecreases are made,appropriate additions ordeductions from the contract total price wiJI be made at the stipulated unit price. Term:Any Contract awarded pursuant to this bid shall remain in effect for 5 years (initial year and 4 optional renewal years)unless tenninated in accordance with the provisions provided within the tenns of the Contract. Price Increase:The annual Unit Price increase shall be tied to the San Diego Consumer Price Index for the prioryear and shall become effective on July Ist ofeach year. Estimated Annual Oty Size 4500 J/.t"-1"Each Description ofWork Meter ReplacementlRetrofit Unit Price Unit Price Written in Words:---IT,--,,l=''-A~t;;~_-r;,~W:~OL.l-Dollars, Cents, Award of Contract,should a contract be awarded,will be made to the responsible and responsive bidder with the lowest Unit Price. Amount Written in Words,This bid will be awarded based upon the Unit Price bid as written in words.Where there is a discrepancy between words and figures,WORDS WILL GOVERN. Please check your calculations before submitting your bid;the Otay Water District will not be responsible for Bidder miscalculations. Maximum Completion or Delivery Time: proceed. _Cf..:..·...;.D__Days from receipt of order or notice to Subcontractor Information.Does this proposal include the use ofsubcontractors?~(YIN) BIDDER'S GUARANTEE To Be Submitted With Bid The successful Bidder shall execute this guarantee upon execution of the contract.If they so choose,Bidder may execute this guarantee at the time ofsubmitting their Proposal. To the Otay Water District Project:Water MeterReplacement -FY 2010 The undersigned guarantees the construction and installation ofthe following work included in this project in accordance with specifications for: Invitation to Bid WATER METER REPLACEMENT -FY 2010 Submittal Deadline:10:00 am,Thursday,June 18,2009 Should any of the materials or equipment prove defective or should the work as a whole prove defective,due to faulty workmanship,material furnished or methods ofinstallation,or should the work or any part thereof fail to operate properly as originally intended and in accordance with the contract documents,due to any ofthe above causes,all within twelve (12)months after date on which this contract is accepted by the Otay Water District,hereinafter called District,the undersigned agrees to reimburse the District,upon demand,for its expenses incurred in restoring said work to the condition contemplated in said project. Said reimbursement shall include the cost of any such equipment or materials replaced and the cost ofremoving and replacing any other work necessary to make such replacement or repairs,or upon demand by the District,to replace any such materials and to repair said work completely without cost to the Otay Water District so that said work will function successfully as originally contemplated.The District shall have the unqualified option to make any needed replacement or repairs itselfor to have such replacements or repairs done by the undersigned.In the event the District elects to have said work performed by the undersigned,the undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within a reasonable time after the receipt of demand from the District.If the undersigned shall fail or refuse to comply with his obligations under this guaranty,the District shall be entitled to aU costs and expenses,including attorney's fees,reasonably incurred due to the said failure or refusal. _PQci.(le..MetT:.c S-eY-Y/c-eS .he Name ofBi e 0 tractor (Person,Finn,or Clrporation) I Signatu ofBidder/Contractor's Authorized Representative~c..L<(.lobi>""Tr-eP<SlA.-O!?'- Name &Title ofAuthorized Representativera-/(P-e Date ofSigning Page 27 Bond No.REC20158 Premium:$3,710.00 WESTERN INSURANCE COMPANY PERFORMANCE BOND The American Institute ofArchitects,AlA Document A311,February 1970 Edition. KNOW ALL MEN BY THESE PRESENTS:that Pacific Meter Services,Inc.as Principal,hereinafter called Contractor,and,Western Insurance Company,a corporation of the State of Nevada,with its Head Office at Reno,Nevada,hereinafter called Surety,are held and firmly bound unto Otay Water District as Obligee, hereinafter called Owner in the amount of .*'"One Hundred Forty EightThousand Four Hundred Four and 00/100 *.($148,404.00), for the payment whereof Contractor and Surety bind themselves,their heirs,executors,administrators, successors and assigns,jointly and severally,firmly by these presents. WHEREAS,Contractor has by written agreement dated ,entered into a contract with Owner for Water Meter Replacement FY2010,Spring Valley,CA ,in accordance with Drawings and Specifications prepared by .which contract is by reference made a part hereof,and is hereinafter referred to as the Contract. NOW,THEREFORE,THE CONDITION OF THIS OBLIGATION is such that,ifContractor shall promptly and faithfully perform said Contract,then this obligation shall be null and void;otherwise it shall remain in full force and effect. The Surety hereby waives notice of any alteration orextension oftime made by the Owner. Whenever Contractor shall be,and declared by Owner to be in default under the Contract,the Owner having performed Owner's obligations thereunder,the Surety may promptly remedy the default,orshall promptly . 1)Complete the Contract in accordance with its terms and conditions,or 2)Obtain a bid or bids for completing the Contract in accordance with its terms and conditions,and upon determination by Surety of the lowest responsible bidder,or,if the Owner elects,upon determination by the Owner and the Surety jointly of the lowest responsible bidder,arrange for a contract between such bidder and Owner,and make available as Work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price;but not exceeding,including other costs and damages for which the Surety may be liable hereunder,the amount set forth in the first paragraph hereof.The term "balance of the contract price,"as used in this paragraph,shall mean the total amount payable by Owner to Contractor under the Contract and any amendments thereto,less the amount properly paid by Owner to Contractor. Any suit under this bond must be instItuted before the expiration of one (1)year from the date ofsubstantial completion. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Owner named herein or the heirs,executors,administrators or successors of Owner. Si ned and sealed this 14th day ofAugust,2009. By:--H....c::---'-=-.j'--------- ,-Pa=c=m=1~=:""==<=7t=-r-J'-------(Principal) {Wltnes,) Performence Bond Revised (0 February,1970 BDWOOI ED.2194 Bond No.REC20158 Premium:incl.in Performance Bond WESTERN INSURANCE COMPANY LABOR AND MATERIAL PAYMENT BOND The American Institute ofArchitects,AlA Document A311,February 1970 Edition. THIS BOND IS ISSUED SIMULTANEOUSLY WITH PERFORMANCE BOND IN FAVOR OF THE OWNER CONDITIONED ON THE FULL AND FAITHFUL PERFORMANCE OF THE CONTRACT KNOW ALL MEN BY THESE PRESENTS:that Pacific Meter SeNices,Inc. as Principal,hereinafter called Principal and,Western Insurance Company,a corporation of the State of Nevada,with its Head Office at Reno,Nevada,hereinafter called Surety,are held and firmly bound unto Olay Water District as Obligee,hereinafter called Owner for the use and benefit of claimants as herein below defined,in the amount of ***One Hundred Forty Eight Thousand Four Hundred Four and 00/100***(***148,404.00**)for the payment whereof Principal and Surety bind themselves, their heirs,executors,administrators,successors and assigns,jointly and severally,firmly by these presents. WHEREAS,Principal has by written agreement dated,entered into a contract with Owner for Water Meter Replacement FY2010.Spring Valley,CA in accordance with Drawings and Specifications prepared by which contract is by reference made a part hereof,and is hereinafter referred to as the Contract. NOW THEREFORE THE CONDITION OF THiS OBLIGATION is such that,if Principal shall promptly make payment to all claimants as hereinafter defined,for all labor and material used or reasonably required for use in the performance ofthe Contract,then this obligation shall be void;otherwise it shall remain in full force and effect subject; however,to the following conditions: 1.A claimant is defined as one having a direct contract with the Principal or with a Subcontractor of the Principal for labor.material,orboth,used or reasonably required for use in the performance ofthe Contract.labor and material being construed to include that part of water,gas,power,light.heat,oil,gasoline,telephone service or rental ofequipment directly applicable to the Contract. 2.The above named Principal and Surety hereby jointly and severally agree with the Owner that every claimant as herein defined.who has not been paid in full before the expiration of a period ofninety (90)days after the date on which the last ofsuch claimant's work or labor was done or performed,or materials were furnished by such claimant,may sue on this bond for the use of such claimant,prosecute the suit to final judgment for such sum or sums as may be justly due claimant,and have execution thereon.The Owner shall not be liable for the payment ofany costs or expenses of any such suit. \ 3.No suit or action shall be commenced hereunder by any claimant a)Unless claimant,other than one having a direct contract with the Principal,shall have given written notice to any two of the following;the Principal,the Owner,or the Surety above named,within ninety (90)days after such claimant did or performed the last of the work or labor,or furnished the last of the materials for which said claim is made,stating with substantial accuracy the amount claimed and the name of the party to whom the materials were furnished,or for whom the work or labor was done or performed.Such notice shall be served by mailing the same by registered mail or certified mail,postage prepaid,In an envelope addressed to the Principal.Owner or Surety.at any place where an office is regUlarly maintained for the transaction of business,or served in any manner in which legal process may be served in the state in which the aforesaid project is located,save that such service need not be made by a public officer. b)After the expiration of one (1)year following the date on which Principal ceased work on said Contract,it being understood,however,that if any limitation embodied In this bond is prohibited by any law controlling the construction hereof such limitation shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law. c)Other than in a state court ofcompetent jurisdiction in and for the county or other political subdivision of the state in which the project,or any part thereof,is situated,or in the United States District Court for the district in which the project,or any part thereof,is situated,and not elsewhere. 4.The amount of this bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder,inclusive of the payment by Surety of mechanics'liens which may be filed of record against said improvement,whether or not claim for the amount of such lien be presented under and against this bond. 7"I'~~~.r~~~~=-(Witness} ~"-I.&.Ot.li~WitneSS) labor and Material Payment Bond Revised to February .1970 BOWO01A-ED.21Sol Pacific Mt ~rv:» __~lJ£J4u.::::J<~.~fUL~~(Seal) /(Principal) (Title) Western Insurance Company (Surety) ~.~I,~~F.et-- REC20158 325025WESTERNINSURANCECOMPANY POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS:That WESTERN INSURANCE COMPANY,a corporation organized and existing under the laws ofthe State ofNevada and having its principal office at the City ofReno,in the State ofNevada,does hereby constitute lIIid appoint Dick L.Rottman,Je:ffi'ey P.Shaffer,Bradley A.Pearce, R.Scott Rottman,Cynthia D.Bell,Karen Corbin,Christie Elliott ss:STATEOF NEVADA) COUNTY OF WASHOE) On this 19"day ofJune,2006,before me personally carne DJCK L.RO N.PRESIDENT of the WESTERN INSURANCE COMPANY and CAROL B.INGALLS,SECRETARYofsaid ,with both ofwhom I am personally acquainted,who being by me severally duly sworn.said,that they,the sai L.ROITMAN and CAROL B.INGALLS were respe<:tively the PRESIDENT and the SECRETARY ofthe ~'dti'.E S~ti~COMPANY.the corporation described in which executed the foregoing PowerofAttorney,that they e ~'tlJ.e se~1of'~ration;that tbeseal affixed to said Power ofAttorney was such corporate seal,that it was so affix by.-or erofthe B lrec~rsJltfd corporation,and that they signed their names thereto by like order as PRESIDENT TARY r"'ely.ofthe ~y. .My Commission expires the3lst'h,201)•o-v:.. .r.····~..·....·..PATRiC·iAA~i'SON··~·!~~)~()..~ ;1II01a'YPUtJIiC-S!.I.nt~aa .,..•A Lets N M>'V Pub)': ,._,_..~~.('('.la.on O-J Ie!'No.0£.10443J-2 E¥pmS~I,:!)ll)i -c,~-).. ..................._.._ H :O~,., This Power ofAttorney is gran~~by authority ofthe follo;oving Resolutions adopted by the Board ofDirectors ofthe WESTERN INSURANCE COMPA~June 19,2006. RESOLYEO,that in connection with the fidelity and surety insurance business ofthe Company,all bonds,undertakings. contracts andother instruments relating to said business may be signed,executed,and acknowledged by person or entities appointed as Attorney(s)-in-Fact pursuant to a Power or Attorney issued in accordance with these resolutions.Said Power{s)ofAttorney for and on behalfofthe Company may andshall be executed in the name and on behalfofthe Company,either by the Chairman,or the President,or a,Vice President,jointly with ,the Secretary,l;lnder their respective designations.The signature ofsuch officers may be engraved,printed or lithographed.The signatureofeach ofthe foregoing officers and the seal ofthe Company may be affIXed by facsimile to any Power ofAttorney or to any certificate relating thereto appointing Attomey(s)-in-Fact for purposes only ofexecuting and attesting bonds and undertakings and other writings obligatory in the nature thereof,and ,unless subsequently revoked and subject to any limitations set forth therein,any such Power ofAttorney or certificate bearing such facsimile signatureor facsimile seal shall be valid and bindingupon the Company and any such power so exe<:uted and certified by such facsimile signatute and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is validly attached. RESOLVEO,that Attomey(s)-in-Fact shall have the powerand authority,unless subsequently revoked and,in any case, subject to the teons and limitations ofthe Power ofAttorney issued to them,to execute and deliver on behalfofthe Company and to attach the seal ofthe Company to any and all bonds and undertakings,and other writings obligatory in the nature thereof,and any such instrument executed by such Attorney(s)-in-Fact shall be as binding upon tbe Company as ifsigned by an Executive Officerand sealed and attested to by the Secretary ofthe Company. I,CAROL B.ING~LS,Secretary ofthe WESTERN INSURANCE COMPANY,do herebycertify that the foregoing is a true excerpt from the Resolution ofthe saidCompany as adopted by its&lardofDirectors on June 19,2006 and that this Resolution is in full force and effect. I,theunde.rsigned Secretary ofthe WESTERN lNSURANCE COMPANY do hereby certify that the foregoing Power of Attomey is in full force and effect and has not been revoked. 14th In Testimony W.hereof,l have hereunto setllJ.Y.hand and the seal ofthe WESTERN INSURANCE COMPANY on this day of August .lOU9- .'~~4Jr'£ Ofthe STATE OF NEVADA its true and lawful Attorney(s)-in-Fact,each in theirseparate capacity ifmore than one is named abQve, to sign its name as surety to,and to execute,seal and acknowledge any and all bonds,undertakings,contracts and other written instruments in the nature thereofon behalfofthe Company in its business ofguaranteeing the fidelity ofpersons;guaranteeing the performance ofcontracts;and executingor guaranteeing bonds lind undertakings required or pennitted in any actions or proceedings allowed by law. In Witness Whereof,the said WESTERN INSURANCE COMPANY has caused this instrument to be sealed with its corporate seal,duly attested by the signatures of its President and Secretary,this 1~day ofJune,2006. WESTERN INSURANCE COMPANY (Signed)By j/;;J ~~:~~==----~President (Signed)Byt'M~4 ~~47-Secretary ALL-PURPOSE ACKNOWLEDGEMENT State of Nevada County of Washoe On 8/14/09 before me,Leah M.Beaudette (Notary) Notary Public,personally appeared,_--..::::C~y~nt::.:..:h~ia~D=-.:-:B::.;e:::.:I.:..I _ Name(s)ofDocument Signer(s) Personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument WITNESS my hand and official seal ~-h'"h1.~ Signature ofNotary ~"",,"""lhur'II""'Ulnllnlll"'U"'.In"'UI'III"fllol"'~lhlll"'''I'''''U''U1~"I.t !e':':.,.LEAH M.BEAUOETIE !i ~,;NOI~ryPUblic·State ci Nevada !!~..,AppomlmQr,~I<~'.r,,,';ed in WP.5h\~G County i !....•No:05·1(;M97-o<:•£:xp'r"s C'<:IQDar 12 2009 i ;..IIIUIUIIUI....,•••II'''I''.~I••'..''..ItIIl'lln''u.,I.,'''..It.,u.UI',IoI:••IIUIIIUS (Affix seal in the above blank space) CONTRACTOR LICENSE AFFIDAVIT BUSINESS AND PROFESSIONAL CODE §7028.15: "A licensed contractor shall not submit a bid to a public agency unless his or her contractor's license number appears clearly on the bid,the license expiration date is stated,and the bid contains a statement that the representations made therein are made under penalty ofperjury. Any bid not containing this information,or a bid containing information which is subsequently provenfalse,shall be considered nonresponsive andshall be rejected by the public agency_" State ofCalifomia) County of San Diego)as ) \.}().tk KDbb being first duly sworn,deposes and says that he is tres\clecl _______Of1bcl£C ~)~i~"]ih:e party making the foregoing bid,is a licensed contractor and understands the infonnation shown below shall be included with the bid and understands that any bid not containing this infonnation,or if this information is subsequently proven to be false,shall be considered non-responsive and shall be rejected by the Otay Water District q /3 ;;loS A-.Je0ecerJJ En8.JHeeD~4-3D-:J/)ID (State License Number and Classification)(License Expiration Date) I certify under the penalty ofPeIjury under the laws ofthe State of California that the foregoing is true and correct. Subscribed at: ,."tll"'"III''IU'I''''';.Ir"lI".....'II..'..'........,...'.."'"l1tlnnUllltlrt....U!' i KIMBERLY ANDERSON 1iNotaryPublic-State of Nevada ~• , A '•i..PflOlnlmenl Recordedin Washoe Cool1tf !!No:07-1535-2·Expires January 30.2011 1 .......III"'~I..IINII...."IIUIIl"'.Il...II.I.,....,n.II..,'..".......,IIU.1t1'OIUIIIIl,i (City) on ..June 15 (Date) (COlUlty) ,20~ (State) NOTARY TO AFFIX SEAL AND CERTIFICATE OF ACKNOWLEDGMENT Cl1320S CQhfun\tk-A-Gen Baa (State License Number and Classification)u ffi2 1A)·1twnb LD *4Sj (Address) ....:....J&.n=....;~Q'-----N\/'69S:fJ (City)(State)(Zip Code) 2S1-i'5Ho (Telephone Number) Page 30 STATE OF CALIFORNIA QContrartors ~tate lLitttme ;Jioarb Pursuant to Chapter 9 of Division 3 of the Business and Professions Code and the Rules and Regulations of the Contractors State License Board, the Registrar of Contractors does hereby issue this license to: PACIFIC METER SERVICES INC to engage in the business or act in the capacity of a contractor in the following c1assification(s): A•GENERAL ENGINEERING CONTRACTOR 13l·24(REV.12-07)e OSP07105460 Witness my hand and seal this day, April 2,2008 Issued April 1,2O<m This license is theproperty ofthe Registrar ofContractors, is not transferrable,and shall be returned tothe Registrar upon demand when suspended,revoked,or invalidated for any reason.It becomes void if not renewed. ~/~.,{:"0 Sand, 913205 License Number DEA N HELLER Set:rclQry o/SUlIe RENEE L.PARKER ChiefDcplty Secretarya/Slate PAMELA RUCKEL Drputy&r:rnory forSouthem NewJda STATE OF NEVADA OFFI<EOFTIm SECRETARY OF S'l'ATE Certified Copy OIARLES E.M~ SeauitieAtlminislTalnr srorrtv.ANDERSON Deputy S«retary for COfIIJrIeIT;iDlReconIin~ ELLJ(XHSU /)qJuty&ere/ary forElect/OIls August 15,2006 Job Number:C20060814-2692 Reference Number: Expedite: Through Date: The undersigned filing officer hereby certifies that the attached copies are true and exact copies of all requested statements and related subsequent documentation filed with the Secretary of State's Office,Commercial Recordings Division listed on the attached report. Document Number(s) 20060519017-21 Description Articles ofIncorporntion Number ofPages 3 Pagesll Copies Respectfully, By DEAN HELLER {Qs.;:~ Certification Clerk Commercial Recording Division 202 N.Carson Street Carson City,Nevada 89701-4069 Telephone (775)684·5708 Fax (775)684-7138 StCRE1~ARY OF STA TB CORPORATE CHARTER I,DEAN HELLER,the dulyelected and qualified Nevada SecretaryofState,do hereby certify that PACIFIC METER SERVICES,INC,did on August 14,2006,file in this office the original Articles ofIncorporation;thatsaid Articles ofIncorporation are now onfile and ofrecordin the office oftbe Secretary ofState ofthe StateofNevada,and further,that said Articles contain all the provisions required by thelaw ofsaid State ofNevada. IN WITNESS WHEREOF,I havehereunto set my hand and affixed the Great Seal ofState,at my office on August 15,2006. DEAN HELLER By ~Q;3i~ Certification Clerk Aug 07 09 l2:02p Carl Walker Pacific Meter 8088754434 p.l fE,j 7-C.&0 -/.2 7 ~- SERVICES.INC Fax Cover Sheet To:Francisco Pedrln From:Jack Robb Attached is a copy I printed from the State of Nevada Secretary of State web site. Au~07 OS 12:03p Carl W~lker Pacific Meter 8088754434 LUUl.Y uta.WI:)-~l;;vreutrY 01 outLI;;)l'lC;::VatlCl PACIFIC METER SERVICES,INC p.2.rage J or 1. 8l!siness E_r:~!!~~informatior. I -------.._--, Status:Active File Date:8/14120065:00:09 PM I I Type:Domestic Corporation Corp Number:E0602522006·0 , I i Qualifving State:NV List ofOfficers Due:8J31/201(]i i ...M~nagedBY;.Exp!~~ion Da~e;IJ !..."......-.. Beg~st:_r.~d~.~entinformation ~---\SIERRA CORPORATE 100 WEST LIBERTY STREET Name;SERVICES -RENO Address 1:10TH FLOOR i! Address 2:City:RENO ,State:NV Zip Code:89505 i Phone:Fax:! I MGliHn£Address 1:Mailing Address 2: Mailing City:Mailing State:NV I :Mailing Zip Code: !Agent Type:Commercial Registered Agent -Corporation i ,,Jurisdiction:NEVADA Status:Active,I -.....- ~ir:ancial :nformatior: I l'~Q Par Share COLll1t:125,000.00 ;~~k~~1o~~d~~~is~pan~ Capital Amount:~---------lf Officers :_;Include InactiveOfiicers :President~JACK ROBB j I I 100 WEST LIBERTY STREET,10TH I;Address 1:Address 2:FLOOR II,City:RENO State;NV !Zip Code:89501 Country:USA I Status;Active Email: .Director -JACK ROBS ; 100 WEST UBERTY STREET,10TH I !Address 1:FLOOR Address 2:I I [City:RENO state:NV Zip Code:B9501 Country:USA Status:Active Email:,, I Treasurer.JACKROBB i, i Address 1:100 WEST LIBERTY STREET,10TH Address 2::1(FLOOR City:RENO State;NV , 1 Zip Code:89501 Count;y:USA i Status:Active Email:i i Secretary.RIQUE ROBS I ,Address 1:100 WEST LIBERTY STREET,10TH Address 2;1FLOOR, 1 City:RENO State:NV \\,Zip Code:89501 Country:USA !:StlJtu~:Aotlve I:maiJ;I ;Director·RIQUE ROBe r \100 WEST I.IBERTY STREET.10TH I I Ii \ hltp1J:lltlsos.stnte.nv.usISOSScrvicc!JAnonymousAccessiCorpSearchIPrintCorp.aspx'IIx8nvq...&1712009 Au~07 09 12:03p Carl Walker Pacific Meter 8088754434 .eUUl!UI;;I.<U.l~M .:It:cn::uuy U1 ,:,wu::,i''iI::vaua p.3l"'age L.or L. ::"ddress 1:FLOOR C:~J:RENO Zip Cod~;89501 Status:Active Address 2: State:NV Country:USA Email: Actions\Amendments I----·~·_"·"·..·....."A:rtlcie$of Incorporation ;!Action Type: !Document Number:20060519017-21 ,#of Pages:13 i !Fife Date:08/1412006 I Effoctive Date:I 1 [Initial Stock Value:No ParValue Shares:25,000 --------••--------.-Total Authorized I;Capital:$0.00,Actlon Type:Initial List I, :DOCL!ment Number;20060588826-65 I #of Pages:11 I I Effective Dale:1 , FHe Date:09/13/2006 ! !(No notes for this action) ;.l\ctlon Ty pe:Annual List ;Document Number:20070561035-59 I #-of Pages:11 i File Date:08/15/2007 I c:ffective Date:I I, I(No notes for this action) 1 Action Type:Annual List I Document Nurnber~20090016884-18 I #of Pages:11 ; i File Date:01/12/2009 -I Effective Date:I IINo notesforthis action) I Action Type:Annual List , i Document Number:20090588423·51 I #of Pages:12 : File Date:07/31/2009 I Effective Date:I i~~~!1.~.t~~f?!.~is ac:ti0IlL ..."".-........--_.._-_..'._.....-.....-_...-".• 4__..__._••_._-.-,.---..-_.- hTtJ'l!tIlC~()~t~tJ\tc.nv.\1~/SOSS(:rvices/AnonymousAccesS/ColpSl:arcblPrintCorp.aspx?lx8nvq ...8/7/2009 Aug,31.2005 IO:46AM RAVE FAMILY FOUNDATION Fax Cover Sheet F acitic Meter Services J;50 West Flumb Lan<; Reno,NV 89;509 Jllck Robb 71'5-13+8-,;6')7 No.4965 P.1/4 Sendto,Francisco rcd"n from,RJ'1ue R,obb Att<;ntio",F~anci15eofedrin Date.August lO,2.009 Fax Number.619N66()o.7~n Fleasc see the attached document~statingthe statu5 or owner~hip. FJease contactJack 1\.066 at 775-8+8-36)7 or f'acitic MeterServices Legal Counsel Mfchae"Fagni at 775-788-]..000 with an3 additional 9uestions. Thank .sJ0LJ, !\i9ue 1\.~bb Au g,31.2005 10:47 AM RAVE FAMILY FOUNDATION No.4965 p.2/4 $ McDONALD·CARANO·WILSON~ Michael A.T.Pagni,Partner mpaglli@mcdonaldcuruno.com August 10,2009 ViaPkkUp Rique Robb Secretary Pacific Meter Services Re:Pacific ~Ieter Services Our File No.:12660-1 Dear Ms.Robb: Reply to:Reno Set forth below is a sw:nmary of the current status of ownership and control ofPacific Meter Services,Inc.•a Nevada corporation ("Company")as ofAugust lO,2009: The Company was organized on August 14,2006 when Articles of Incorporation were filed with the Nevada Secretary ofState.At the time offonnation,Jack Robb,Michael Howard, and Eric Petersen were the sole shareholders of the Company.Each subscribed for and were issued 100 shares of common stock in the Company pwsuant to Stock Certificates issued on August 25,2006. Mr.Robb~Howard and Petersen were initially the directors and officers ofthe Company. On or about December 31~2008,Mr.Petersen sold all of bis shares in the Company to Robb and Howard.Effective December 31,2008,Mr.Petersen resigned his position as director and officer of the Company.As of January I,2009,all of the outstanding shares of the Company were owned equally by Mr.Robb and Mr.Howard,each holding 150 shares. On or about July 1,2009~Mr.Howard then sold all ofhis shares in the Company to Mr. Robb.Effective July 1,2009,Mr.Howard resigned his positions as director and officer of the Company.As ofJuly 1.2009,all ofthe outstanding shares ofthe Company were owned by Mr. Robb,and Mr.Robb was appointed sole director,and President and Treasurer of the Company. Rique Robb was appointed Secretary ofthe Company. 100 'WEST UBERTY ST,10TII FLOOR RENO,NEVADA 89)01 P.O BOX 2670,RENO,NEVADA 89:505 775-188-:2000·FAX ""'-788-2020 2300 WEST SAHARAAVENUE SUITE 1000 USYBGAS.NEVADA 89101 702-873-4100 l'AX 70:2-673-9966 ~McDONAlD'CARANO'WILSON'~ Aug,31.2005 10:47AM RAVE FAMILY FOUNDATION No.49S5 P.3/4 Rique Robb August 10)2009 Page 2 As ofAugust 10,2009,Jack Robb is the sole shareholder ofthe Company.Jack Robb is also the sole director,and also acts as President and Treasurer of the Company.Rique Robb is the secretary ofthe Company.This infonnation was updated in the Nevada Secretary ofState's website on July 3],2009 by Document No.20090588423-51. Please feel free to contact me should you have any questions. SjoceI:ely, ~~~\(~f\ MATP:mn Enclosures Aug,31.2005 10:47AM RAVE FAMILY FOUNDATION No.4965 p.4/4 WRl'ITEN CONSENT IN LIEU OF SPECIAL MEETING OF THE BOARD'OF DIRECTORS OF PACIlITC METER SERVICES,lNe., a Nevada corporation The undersigned,being the sole Director of PACIFIC METER SERVICES, INC.,a Nevada corporation (the "Coxporationll),hereby waives notice of the annual m.eeting of the board of directors of the CO:q)Oration and consents,pursuant to NRS 78.315,as amended,to the following as the due and proper actions by the Board of Directors of the Corporation with the swne force and effect as ifthey were adopted by vote at a formal annual meeting convened for such purpose pursuant to notice: RESOLVED:That the following individual is elected to the office set forth next to their respective names to serve until the time set for the next mmual meeting of the Board ofDirectors,or until the respective successor for each such officer is dll1y elected and qualified: President Secretary Treasurer JACK ROBB RIQUE ROBB JACK ROBB RESOLVED:That aU actions of the Board of Directors and officers of the Corporation taken from time.to time since the last meeting ofthe Board of Directors are hereby ratified;confumed and approved intheire.ntire1y; IN WITNES S WlffiREOF.I have hereunto executed this Written Consent as of July 1,2009,declaring and certifying that thefacts stated above BY: The undersigned.certifies that the directors signing this consent are all of the members ofllie Board ofDitectoIS ofPACIFIC l\.1ETER SERVICES,INC.and that 1his consent has been accepted for filing in the corpor :fi!..es as ofJul ,009. Non-Collusion Affidavit In accordance with Public Contract Code §7106,thefollowing Affidavit must be executed by Bidder andsubmitted with bid. Non-Collusion Affidavit To Be Executed By Bidder and Submitted With Bid WATER METER REPLACEMENT -FY 2010 Submittal Deadline:10:00 am,Thursday,June 18,2009 State ofCalifornia County ofSan Diego ss. J6<,,1((2,0 ,being first duly sworn,deposes and says that he or she (Name)D.AI is 7;;uu...,s ,"*=r-~of V"lItc:if.2:.1 nllie"...s:e"'f~";~the party (bidder)submitting the Title Name ofCompany foregoing bid that the proposal is not made in the interest of,or on behalf of,any undisclosed person,partnership,company,association,organization,or corporation;that the bid is genuine and not collusive or sham;that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid,and has not directly or indirectly colluded,conspired, connived,or agreed with any bidder or anyone else to put in a sham bid,or that anyone shall refrain from bidding;that the bidder has not in any manner,directly or indirectly,sought by agreement,communication,or conference with anyone to fix the bid price ofthe bidder or any other bidder,or to fix any overhead,profit,or cost element of the bid price,or of that of any other bidder,or to secure any advantage against the public body awarding the contract ofanyone interested in the proposed contract;that all statements contained in the bid are true;and further, that the bidder has not,directly or indirectly,submitted his or her bid price or any breakdown thereof,or the contents thereof,or divulged information or data relative thereto,or paid,and will not pay,any fee to any cOIporation,partnership,company association,organization,proposal depository,or to any member or agent thereofto effectuate a collusive or sham bid. (Date) rO-L,-f:z-rtJ~tey5ter'f'::"~ Bidder Name (Person,Finn,Corp.) J5lJ VV.f(~L~:Ji4S/ Address i2vWO nr ~5~~J City,State,Zip Signed at (Piace) lJ/? Autl'l<nized Representative Representative's Name Representative's Title End ofSection Page 31 BIDDER'S STATEMENT REGARDING INSURANCE COVERAGE To Be Submitted With Proposal PROPOSER HEREBY CERTIFIES that the Bidder has reviewed and understands the insurance coverage requirements specified in the Invitation to Bid -WATER METER REPLACEMENT - FY 2010,Submittal Date:June 18,2009.Should the Bidder be awarded the contract for the work,Bidder further certifies that the Bidder can meet the specified requirements for insurance, including insurance coverage of the subcontractors,and agrees to name the Otay Water District as Additional Insured for the work specified. -.J:c k Qo)./;Tree.-su--rer Name &Title ofAuthorized Representative Date ofSigning Page 32 ..,..-...- ACORD..CERTIFICATE OF LIABILITY INSURANCE OPIC DF I OAUINMlOfil'lYY'l1 .P1I.CME'l'l 07/30/09 PRODUCeR THIS CERTIFICATE IS ISSUED AS AMATIi:OR OF INFORMATiON ONLY AND cONFERS NO RIGHTS UPON THE CERTIFICATE A and H Insurance /Inc.HOLDER.THiS CERTIFICATE DOES NOT AMEND,EXTEND OR PO Box 7340 AI.TE:R THECOVERAGe AFFORDED BY THE POUCli:OS BELOW. Reno NY 89510 Phone:775-B29-2600 Fax:775-B29-2607 INSURERS AFFORDING COVERAGE NAlC,#- INSURED INaUREflA:EMC Insurance COIllPah:i.es INSURERS:'l!ower Insurance Co c£NY Pacific Meter Ssrviaes,Inc INSUREl\c: 550 w.Plumb Lane INsURER0:Reno NY 89509 INSURERE: COVERAGES THE POLICIESOFINSURANCELISTED BELOWHAVEBEEN ISSlJEDTO"THEINBUREDNMliil)ABOVE FOR'llliPOllOY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM ORCONDITION OFANY CONTflACTOR OTHEROOCUMENTWffilRESPECTre WHICH 'THISCERnACATEIM'l'BEISSUE!!OR MAY PERTAIN,THe INSURANCEAFFOROED SVTHEPDLICIES DESCRIBED HEREIN IS stlBJECnOAU THeTERMS,EXCLUSIONS ANO coNDITIONS OF SucH POUOJES.AGGREGATE LIMITS SHOWNW,YHAVE seEN REDUCEllIlYPIIlDCLIIIMS. LTR NSR lYPEOF INSUflANce:.poUCYNUMilEll I ~~~TrFMd't\1Wi:OATE ",MIlJDIYY LIMITS ~eFlAL.UAllIlITY !:AcH QlJCURflENCI1 Isl,OOO.DOO A X·[jMERClALGENERALLIABILITY 3X89484 OS/22/09 OS/22/10 PREMISES Ell Da:lIl'1ln.e!Is~oo,ooOc.::.:.. cLAIMS MADE [i]OCCUR-~'ED EllP(Any11M petie")55,000 -PERSONAL &AOV INJURY sl,oOO/OOO -GENERALAGGREGATE 52,000 000. ~'LAOG~nUMrrAPPLIES PER:PROOUClS·CcMP/OP AGG 52,000,000 POliCY ~~i .nLOC .... ~TOMOBILI!LIASILI1Y COMBINED BINGLELIMIT 51,000/000AAN'fAUTO 3XB9484 OS/22/09 OS/22/10 (EulXldonl)I- r-ALlOWNEil AUTOS BOOILYINJURY Si~ScHeDULEDAUTOS [Perp.~lltI) J£.HIREOAUTOS BODILYINJURY S~NoN·OWNEOAUTOS (psrll:X:klenll "-PROPERTYDAMAGE s[PSI ar:detOh!) RRAGE LlAslLITY AlITeoNLY·EAACCIOENr "AN'fAUTO OTHeRTHAN 'EAACC 5 AUTOaNLY:ABG s.. ~EllSltJMBR!:LLAUABll.ITY EACH OCCURRENCE 55,000,000 A.X cOCUR 0 ClAIMS PMOE 3Xa9484 OS/22/09 OS/22/10 AGGREGATE 55,000.000 $RDEDUCTIBLE $ Rm/lTION 5 s ..WORK~R5CDMPEI/SATION AND XIr~;ylt~l~I IU~~.EMPLOYERS'UABllITYBANYPROflRIETORIPARTNERlEXEClmve.WCNOOO1227 OS/22/09 OS/22/10 e:.L EACHACCIOeHT sl,OOO 000OFFICER/MEMBEREXCLUOED?NEv1ulA &CALJ:FORND E.L DISEASE ·EAEMPLOYEE 51.000.000~~~Mt"pA~v~~sb.11l1Y ELOISEASE-POLlCYLIMlT $1,000 ODDOTH~R DESCRIPTION OF OPERATiON51LOCATIONS IVEHICLES I EXCLUSiONSAODEDElYE/'<DORSEMarrISPECIAl.PROVI91OIUi Certificate Ho~der is named as'Addi~iona1 Insured with respect to Genera1 Liability as per attached fo:rm CG7174 (01/08)re9'ardi.ng: Wate=Mel:er Replacement:.-FY 2010 *10 Days Notice of Canoellation for Non-Payment. CERTIFICATE HOLDER otay Water District 2554 Swaetwater Springs BlVd. Spring Valley CA 91978 ACORD 2512001/09) CANCELl.ATION OTAWATD 1lllOULD1I/iY o~lHE AflOVEDE5CRlaED POUCll,S aeCANCELLal BEFOIlETHEEiU'IRATlON oA'TETHEREOF,THEISSUING INSURERWILL ~MAIL ~DAYS WRITTEN i/OTlCETO1l1eCI!RTlflCATEHOLDER NAMED,.O THE l!FToX!H~ I~~W!il!.i.!l6l§l!~I;IDl!~Clf::A!~~W~~11.;j{1MlI:~lt CSlACORO CORPORATION 19SB COMMERCIAL GENERAL LIABILITY iHIS ENDORSEMeNT CHANGES THE POLICY.PLeASE READ IT CARI:FULLY. BLANKET ADDITIONAL INSURED -CONSTRUCTION CONTRACTS ThIs endorsement modifies the Insurance provIded under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A.SECTiON II -WHO IS AN INSURED Is amended to Include as an additional insured any person or organization for whom you are performIng operations when you have'agreed In wrillng in a contract or agreement that such person or organization be added as an·addltfonalln~ured on your polley.Such person -or organIzation Is an addItfonal Insured only with respect to "ability for "bodily InJury","property damage"or 'personal and advertIsing inJUry"caused,In Whole orIn part,by: 1.Your acts or omlsslonsj or 2.The acts or omissions of those actlng 00 your behalf;. In the performance of your ongoing operations for the addlUonallnsured. A person's or organizatIon's status as an addltlonal Insured under this endorsement ends when your operations for that addlUonal Insured are completed. 8.With respect to the Insurance afforded to these additional Insureds,the following addillonal exclusions apply: This Insurance does not app'ly fo: 1."Bodily injuryt "property damage"or ·personal and advertising Injury"arisIng out of the renderIng or failUre to render,any professIonal archItectural,engIneerIng or surveying servlces,includfna: a.The preparlng,approving,or faJllng to prepare or approve maps,shop drawIngs, opinIons,reports,5ulVeys,field orders, change orders·or drawIngs and specifications;or b.Supervisory,inspectron,architectural or engIneerIng activities. 2."Sodlfy Injury"or "property damage"occurrIng after: a.All work,Including matenals,parts or equipment furnished In connection wllh such work,on the project (other than service.maintenance or repairs)10 be performed by or on behalf of the addltfonal Insured(s}at the location of the covered operations has been completed;or b.That portion of"your work"out of which the Injury or damage arises has been put 10 Its Intended use by any person or organlzallon olher than another contractor or subconlractor engaged In performing operations for a principal as a part of the same proIect. C.The limits of insuranGe applicable to the addillonal Insured are those specified In the Declaratlons of thIs policy or In the written contract or written agreement,whichever 15 lower. D.Any coverage prOVided hereunder shall he B)(CeSS over any olher valid and collectible Insurance ava/labia to the additional Insured Whether that Insurance Is prImary,excess,contingent or on any other basIs,unless you and the additional insured have specifically agreed In a wrltlen contract or written agreement that this insurance be prlmalY'. When coverage is provided on a primary basls we will not seek contribution from any other Insurance avalfable to the addltfonal Insured If a wrttlen contract or Written agreement requIres that thIs Insurance be noncontributory. Eo All other tenns and condlUons of this policy remain unchanged. CG717~(1-0B)InclUdes coPyr1llhleil material of 150 Propertles,lnc.with Its permIssIon.Page 10ff IMPORTANT If the certificate holder Is an ADDITIONAL INSURED,the pollcy{les)must be endorsed.A statement on this certificate does no~confer rights to the certificate holder In lieu of such endorsement(s). If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder In lieu ofsuch endorsement(s). DISCLAIMER The Certificate ofInsurance on the reverse side ofthis form does not constitute a contraot between the Issuing Insurer(s),authorized representative or producer,and the certificate holder,nor does It affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon. ACORD :as (2001/08) WORKER'S COMPENSATION INSURANCE CERTIFICATE The Bidder shall execute the following fonn as required by the California Labor Code,§1860 and §1861: I am aware of the provisions of Section 3700 of the Labor Code,which require every employer to he insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code,and I will comply with such provisions before commencing the perfonnance ofthe work ofthis contract. re ofBidder's Authorized Representative £~/I..R¢kl Ti=~A$'{..A..roe v-- Name &Title ofAuthorized Representative G·~/.00j Date ofSigning Page 33 BID SECURITY BOND To Be Completed,Notarized,and Submitted With Bid KNOW ALL PERSONS BY THESE PRESENTS: PACIFIC METER THAT SERVICES INC.hereinafter calledPrincipal,and (Contractor) WESTERN INSURANCE COMPAminafter called Surety,are (Surety) jointly and severally held and finnly bound unto the Otay Water District,2554 Sweetwater Springs Blvd.,Spring Valley,CA,91978,hereinafter called District,in the penal sum of ten percent (10%)ofthe aggregate ofthe Proposal of Principal for the work,this sum not to exceed ($***10%OF BID******tdollars lawful money ofthe United States,for the payment whereof unto Otay Water District,Principal and Surety jointly and severally bind themselves forever firmly bythese presents. WHEREAS,Principal is herewith submitting a Bid for: WATER METER REPLACEMENT -FY 2010 Submittal Deadline:10:00 am,Thursday,June 18,2009 NOW,THEREFORE,the condition of this obligation is such that if Principal is awarded a contract for the work,and if Principal within that time specified in the Proposal enters into, executes and delivers to District a contract in the fonn provided herewith,and ifPrincipal within the time specified in the Proposal gives to District the performance bond and the payment bond on the forms provided herewith,and evidence of required liability and worker's compensation insurance,then this obligation shall be void. If,however,Principal shall fail or refuse to furnish,execute,and deliver to District said perfonnance and payment bonds,and evidence of required liability and worker's compensation insurance in the time stated in the Proposal,then Principal and Surety shall forfeit to District the penal sum hereof. AND IT IS HEREBY DECLARED AND AGREED that Surety shall be liable under this obligation as Principal,and that nothing ofany kind or nature whatsoever that will not discharge Principal shall operate as a discharge or a release ofliability ofSurety. IT IS HEREBY FURTHER DECLARED AND AGREED that this obligation shall be binding upon and inure to the benefit of Principal,Surety and District and their respective heirs, executors,administrators,successors and assigns. Page 25 BID SECURITY BOND -Continued SIGNED AND SEALED THIS 16th PACIFIC METER SERVICES INC. N e .ofPrincipal.... l day of JUNE ,200_9_ Sign e ofPrincipal's Authorized Representative RJ Uf 120M,5.u1.L/a.u-F Name and Title ofSigner (Seal andsignature ofNotary Public) (Attach notary acknowledgment ofSurety) s./rel:tyy ~,~{~~~- Cynthia D.Bell,Attorney-in-fact Page 26 Dick L.Rottman,Jeffrey P.Shaffer,Bradley A.Pearce, R.Scott Rottman,Cynthia D.Bell,Karen Corbin,Christie Elliott WESTERN INSURANCE COMPANY POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS:ThatWESTERN INSURANCE COMPANY,a corporation organized and existing under the laws oflheSlate ofNevada and having its principal office at the City ofReno,in the Slate ofNevada,does hereby constitute and appoint S8: eo SEAL 1994 STATE OF NEVADA) COUNTY OF WASHOE) On this 19th day ofJune,2006.before me personally came DIC~L.R MAN.PRESIDENT of the WESTERN INSURANCE COMPANY and CAROL B.INGALLS.SECRETARY of .y,with both ofwhom Iam personally acquainted,whobeing by me severally duly sworn,said,that they,the ~L.ROITMAN and CAROL B.INGALLS were respectively the PRESIDENT and the SECRETARY ofthe saigMT~INS~E COMPANY.the corporation described in which executed the foregoing Power ofAttorney,that they e~Ww the se.a~~f~:t'brporation;that the sealaffixed to said Power ofAttorney was such corporate seal,that it was so~t"¥flY order of~~\~f o~'recto.•id corporation,and that Ihey signed their names thereto by like order as PRESID~~CRET ;~ectively.of lIpany. MyConunission expires th~~~Marc~~Or.""'''"''-''PATRiCIA·A:·Lrno'~~\1igned)a..~ I NOI.'YPubIlO'St.~..Pi ~NotaryPublicI ._"""""'""'I ~.).!No:M-l£H.m.2·Elt/lniS JI,:.!IIO!~,. This pow::;~~:::~':'~~~by authority ofthe following Resolutions adopted by the Board ofDirectors ofthe WESTERN INSURANCE COMP~on June 19.2006. RESOLVED,that in connection with the fidelity and surety insunmce business ofthe Company,all bonds,undertllkings, contracts and other instrwnents relating to said business may besigned,executed,and acknowledged by person orentities appointed as Attorney(s)-in-Fact pursuant to a Poweror Attorney issuedin accordance with these resolutions.Said Power(s)ofAttorney for and on behalfofthe Company may and shall be executed in the lIjI1Ileand on behalfofthe Company,either by the Chainnan,or the President,ora Vice President,jointly with the Secretary,under their respective designations.The signature ofsuch officers may be· engraved,printedor lithographed.The signature ofeach ofthe foregoing ot'l:kers and the seal ofthe Company may be affixed by facsimile to any Power ofAttorney or to any certificaterelating thereto appointing Attomey(s)-in-Fact for purposesonly ofexecuting and attesting bonds and undertakings and other writings obligatory in the nature thereof,and ,unless subsequently revoked and subject to any limitations set forth therein,any such Power ofAttorney or certificate bearing such facsimile signatureorfacsimile seal shall be valid and binding upon the Company and any such powerso executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with re.spect to any bond or undertllking to which itis validly attached. RESOLYEO,that Attomey(s)-in-Fact shall havethe power and authority,unless subsequently revoked and,in any case. subject to the termsand limitations ofthe PowerofAttorney issued ,to them,to execute and deliver on behalfofthe Company and to attach the seal ofthe Company to any and all bonds and undertakings,and other writings obligatoryin the nature thereof.and any such instrument executedby such Attomey(s)-in-Fact shall be as binding upon the Company as ifsigned by an ExecutiveOfficer and sealed and attested to by the Secretary ofthe Company. I,CAROLB.INGALLS,Secretary ofthe WESTERN INSURANCE COMPANY,dohereby certify that the foregoing isa true excerpt from the Resolution ofthe said Company as adopted by its Board ofDin:ctors on June 19.2006 and thatthis Resolution is in fullforce and effect. I,the undersi1Pled Secretary oftheWESTERN INSURANCE COMPANY do hereby certify that the foregoing Power of Attorney is in full foreland~ft"Ilm,and has not been revoked. In TesfiIll9Jly_W,lIiireof,I have hereunto setmy band and theseal ofthe WESTERN INSURANCE COMPANY on this 16th "",or June < < <•2009 </1u.~111 Jr4 _ Secretary Ofthe STATE OF NEVADA its true and lawful Attorney(s).in-Fact,each in their separate capacity ifmore than one is named above, to sign itsDame as surety to,and to execute,seal andacknowledge any and all bonds,undertakings.contracts andotherwritten instruments in the nature thereofon behal fofthe Company in its business ofguaranteeing the fidelity ofpersons;guaranteeing the performance ofcontracts;and executing or guaranteeing bonds and undertakings required orpermitted in any actions or proceedings allowed by law. in Witness Whereof,the said WESTERN INSURANCE COMPANY has caused this instrument to be sealed with its corporate seal,duly attested by the signatures ofits President andSecretary,this Icjl>day ofJune,2006. WESTERN INSURANCECOMPANY (Signed)By.iIMI~..-.---~::.:::=-_....~President ALL-PURPOSE ACKNOWLEDGEMENT State of Nevada County of Washoe On Ie.114:.1 1-6 d .j before me,11istt;,;J.0t¥Ve.- I /y!N~,n.O.Q,~I/Notary Public,personally appeared,_.....;~:==.;~~~~:.--..--.::-..-:-_u"'"":'~-:--~_ Name(s)of Document Signer(s) Personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capayity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. WITNESS my hand and official seal ~.:Jl.~ Signatll ofNotary iIIU'~IIIIII'III'llt'l.tlllt"'lllk~i'~I~;IN"N':~C·~~~Et"fl~""'l ~l Notary Public·State of Nevada ~1~Appoinlmenl Recorded in WashoeCounty ~ i ..t-.,,-'No:08·6030·2·Expires January 15,2012 ~~'IIII""I....ltn,""lIlnUUII'Jlt."nulul'IIUI.",,,,,,,,,.n"lIl..tl"'IN11""'_ (Affix seal in the above blank space) AGENDA ITEM 6e STAFF REPORT GENERAL MANAGER'S RECOMMENDATION: Pedro Porras,~ Chief,Water operations Manny Magana,~~Il~ Assistant General Manager,Engineering &Operations AWARD OF CONTRACT TO PACIFIC METER SERVICES,INC.FOR MANUAL WATER METER RETROFIT TO RADIO READ METERS TYPE MEETING: SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Ass!.GM); SUBJECT: Regular Board Frank Anderson,Utility".\.I{A'Serv~ces Manager;"(;i' f ;J .: MEETING DATE: W.O.lG.F.NO: August 5,2009 DIV.NO.All That the Board award a contract to Pacific Meter Services,Inc. in the amount not to exceed $148,410 for retr0fi~ting up to 4,500 existing manual-read meters with new automated-meter-read (AMR)meters.' COMMITTEE ACTION: Please see Attachment "A". PURPOSE: To provide bid results and obtain authorization to award a contract to retrofit up to 4,500 3/4-inch and I-inch manual read meters with AMR meters. ANALYSIS: As identified with the District's Strategic Plan,manual-read water meters are being retrofitted with radio-read water meters. Included in the FY 2010 Capital Improvement Budget (CIP 2458)is $1,375,000 to retrofit approximately 4,500 meters of various sizes,including parts,contract labor,.and staff time.The budgeted amount in this elP ~roject is to account for contract labor for 3/4-inch and I-inch retrofits,in-house retrofit of larger than I-inch meters,the purchase of AMR meters,gaskets, and connection supplies. In accordance with District purchasing requirements,a notice soliciting bids for the work was advertised on May 22,2009.On June 4,2009 contractors attended a mandatory pre-bid meeting and on June 18,2009 bids were received and publicly opened with the following results from seven bidders: Bidder Amount Pacific Meter services $148,410 Concord Environmental $156,375 UUI Construction $174,375 Measurement Control Systems $175,500 AB Rashmi Inc.$181,125 3D Enterprises $402,525 Palm Engineering $1,125,000 Pacific Meter Services,Inc.(Pacific),the low bidder,has performed similar work in the states of Washington,Nevada,New Jersey,Arizona,and most recently otay Water District's last AMR meter retrofit for FY 2009 eIP.Last year's contract was to retrofit 4,500 meters for $179,505.00 with no'·c~ange orders. This year,their proposal cost is 17.5 percent lewer.District staff is very satisfied with their performance of last year; their response to any District request has been outstanding. Once notified that they have been awarded the contract,Pacific will have ten days to furnish the required Performance Bond and Labor and Materials Bond. It is recommended that the Board award a contract to Pacific in an amount not to exceed $148,410 to cover the cost for retrofitting approximately 4,500 meters from manual to radio- read meters. ~ifI~III ., II II II FISCAL IMPACT: The total budget for this ten-year AMR/Manual Meter Replacement elP 2458 is $10,277,000.This ten-year elP started in December 7,2005.For FY 2010,staff budgeted and the Board approved $1,375,000.The value of this retrofit contract is $148,410 which staff feels is sufficient to cover the costs of contract labor for replacing approximately 4,500 meters for FY 2010. Total cumulative costs and commitments on this ClP to date, including this contract and prior District approved AMR meter purchases ($702,811)for this fiscal year is approximately $3,740,806;therefore,the remaining approved elP at this time is $6,536,194. Staff has evaluated this elP and feels that the current approved bUdget is sufficient to cover the costs for completing the remaining approximately 24,479 meter retrofits through 2014. STRATEGIC GOAL: Strategy:lmplement Field Technology solutions. Objective:Convert all District meters to AMR. LEGAL IMPACT: None. ~.Jft-~!L-=-----_G neral Manager Attachment "A",Committee Action ATTACHMENT A r·''''-··------------rAwARD·o''F-c''oN·TRACT---To-PAcTFIC'-METER"--SERVIcEs~I"}~c-:"-FoR-MANUAi'-1 I SUBJECT/PROJECT:WATER METER RETROFIT TO RADIO READ METER~:.._.._...__._.._._".__.._"._._...._"...JL__"_.._,,_.~.L .__.__._,,..__.... ....._..,,__.__..."...,,_. COMMcrTTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on July 27,2009 and the following comments were made: •Staff recommended that the Board award Pacific Meter Services (PMS)a one year contract,not-to-exceed $148,410.Staff indicated that the bid provides the District with the option, at its discretion,to approve four additional one-year term renewals.Should the District exercise one or more of the optional annual renewals,the unit price will be adjusted accordingly based on the Consumer Price Index for the previous year. •Staff indicated that PMS performed Otay·Water District's last AMR meter retrofit for FY 2009 CIP for a total fee of $179,505 and that this year PMS'proposed contract i~approximately 17.5%lower (Reduced cost per meter $39.89 last year to $32.89 per meter in this proposed contract).District staff is very satisfied with their services. •The Committee inquired about the significant difference with bid offers between Pacific Meter Services ($148,410)and Palm Engineering ($1,125,OOO).Staff said that Palm Engineering is a new business who is unaware of the District's needs.They did not conduct a walk-thru of the work to understand the District's requirements;and as a result,their bid was high. •The Committee acknowledged the cost benefit of contracting with PMS. Following the discussion,the committee supported staffs' recommendation and presentation to the full board as a consent item. Quality Assurance Approval Sheet Date.I ()--11.1-)0 Signature f~~'6 ~Bj)ERSDJ4 Author: Document Description:SlI1IT ~?D~\~SM8Sj)l'l.("fT DNE E.'K\6NS)DH Of 11\\0 R ~~DE)'~NT\~c:\ W )'''~V~)~\L ~EThR ~'J·)L5)X..L-:..N-=-c'-=-._ ~~Cil-- IO-IJ..j-aD\0 Date:/O ..../L)~10 Signature ..-;- J'RAAK 8-T4\>E«5 Or-\ Printed Name Manager: Printed NameQAReViewer~-4 ,,-A J..J...h--- Signature --r:~\Z'-=l;----"'&~::c<.~A__'_'_J=--_ Printed Name~~--= The above signatures attest that the attached document has been reviewed and to the best of their ability,the signers verifY that it meets the District quality standard by clearly and concisely conveying the intended information;being grammatically correct and free offonuatting and typographical errors;accurately presenting calculated values and numerical references;and being internally consistent,legible and unifonu in its presentation style. AGENDA ITEM 7e 5TAFF REPORT November 3,2010TYPEMEETING: SUBMITTED BY: APPROVED BY: (Chief) Regular Board David Charles ~ Public Services Manager Rod posada~~ Chief,Engineering MEETING DATE: PROJECT NO.1 SUB-PROJECT: P1438- 010000 DIV.NO·1,2, &4 APPROVED BY: (Ass!.GM): SUBJECT: -Manny Magana~ Assistant General yanager,Engineering and Operations Award of a Professional Services Contract for Recycled Water Plan Checking,Retrofit,and Inspection Services for Developer Projects GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) authorizes the General Manager to execute an agreement for the recycled water plan checking,retrofit,and inspection services for developer projects with AEGIS Engineering Management (AEGIS),in an amount not-to-exceed $300,000,during Fiscal Years 2011,2012,and 2013 (see Exhibit A for project locations.) COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a professional services agreement with AEGIS for recycled water plan checking,retrofit,and inspection services for developer projects, in an amount not-to-exceed $300,000,during Fiscal Years 2011,2012, and 2013 (ending June 30,2013). ANALYSIS: The District requires the services of a consulting firm to provide professional services for recycled water plan checking,retrofit,and inspection services for developer projects.The Consultant assists the Public Services Division of the Engineering Department in processing and performing plan check review and approvals for developer recycled water irrigation projects and retrofit projects for multifamily dwellings.These services are also required to perform inspections and participate in coverage as well as cross- connection tests,as mandated by the California Department of Public Health.Last year,the District reviewed and processed thirty (30) plan checks,with twenty (20)new inspection recycled water projects, totaling approximately $155,000.For the remainder of Fiscal Year 2011,through the end of Fiscal Year 2013,it is anticipated that the Consultant will review and inspect approximately fifty (50)projects. Over the same period,staff estimates the cost to perform this responsibility will not exceed $300,000. On July 22,2010,the District solicited recycled water plan checking,retrofitting,and inspection services for developer projects by placing an advertisement on the District's website and several other publications,including the Union Tribune and San Diego Daily Transcript.A Letter of Interest was received from ten (10) consultants. On August 27,2010,the District issued a formal Request for Proposal (RFP)to all ten (10)consultants: •AEGIS Engineering Management •Bureau Veritas North America,Inc. •CValdo Corporation Civil Engineering •Dudek •HDR Engineering,Inc. •Hofman Planning &Engineering •Pacifica Services,Inc. •Poggemeyer Design Group •Urban Logic Consultants,Inc. •Vanir Construction Management,Inc. Four (4)proposals were received from AEGIS Engineering Management, Bureau Veritas North America,Inc.,Dudek,and HDR Engineering,Inc. The other six (6)declined to propose. In accordance with District Policy 21,Staff held interviews with the four (4)consultants on October 4,2010,and the panel concluded that AEGIS had the best proposal and provided the best overall value to the District. The AEGIS project manager and AEGIS team members listed in the proposal are all American Water Works Association (AWWA)certified cross-connection control specialists and have vast plan checking, 2 FISCAL IMPACT: inspection,and retrofitting experience and currently are performing an excellent job at plan review and inspection for the District. In addition,with the District's plan to optimize recycled water use to internal irrigation for multi-family dwellings,having experienced AEGIS'cross-connection specialists on board is crucial in obtaining proper inspection.Staff also evaluated the estimate for plan checking and inspection provided by AEGIS. Staff estimated that an average of $6,000 will be needed per project to perform the plan check review and inspections.The District recuperates these funds by billing directly to the developer.1:1cJl;y Plan check and inspection services are an on-going effort provided by the District to developers.This particular expense is completely funded by developer deposits and does not affect the District's operating budget. STRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District,in a professional,effective,and efficient manner,"and the Otay Strategic Goal,"to develop and improve infrastructure for increased recycled water use." LEGAL IMPACT: None. P:\Public-s\Staff Reports\2010\BD 11-3-10,Staff Report,Award Contract for Recycled Water,(DC-RP).doc DC/RP:mlc Attachments:Attachment A -Committee Action Attachment B -Summary of Proposal Rankings Exhibit A -Location Map 3 SUBJECT/PROJECT: P1438-010000 ATTACHMENT A Award of a Professional Services Contract for Recycled Water Plan Checking,Retrofit,and Inspection Services for Developer Projects COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on October 18,2010 and the following comments were made: •Staff is requesting that the Board authorize the General Manager to execute a professional services agreement with AEGIS Engineering Management (AEGIS)for the recycled water plan checking,retrofit,and inspection services for developer projects in an amount not-to-exceed $300,000 during Fiscal Years 2011-2013. •Staff stated that the services are required,as mandated by the California Department of Public Health,and include the tasks of performing inspections,participating in coverage and cross- connection tests. •On July 22,2010 the District placed an ad on its website and local newspapers to solicit for a recycled water plan checking, retrofitting,and inspection services consultant.Ten (10) firms submitted a letter of interest and statement of qualifications and on August 27,2010 the District issued a formal request for proposals to the ten firms.The District received four (4)proposals:1)AEGIS Engineering Management,2) Bureu Veritas North America,Inc.,3)Dudek,and 4)HDR Engineering,Inc . •In accordance of Policy 21,the District's panel conducted interviews on October 4,2010,and afterwards the consultant ranking process was completed which staff indicated that AEGIS was the most qualified consultant and provided the best overall value.In addition,staff noted that AEGIS's references were excellent. •Staff noted that AEGIS'project manager and team members are all American Water Works Association certified as cross-connection control specialists and are currently performing an excellent job at similar services for the District with no issues to report. •Staff believes that selecting AEGIS to perform recycled water plan checking,retrofit,and inspection services for developer projects will allow a smooth transition of the District's plan to optimize recycled water use to internal irrigation for multi- family dwellings. •Staff indicated that AEGIS'charges to perform the plan check review and inspections is reimbursable to the District by billing it directly to the developer.It was also noted that the charges will not affect the District's operating budget. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as a consent item. ATTACHMENT B Summary of Proposal Rankings ATTACHMENT B SUMMARYOFPROPOSALRAN~NGS On-Site Recycled Water Plan Checking,Retrofit Plan Review and Inspection Services for Developer Projects WRITTEN ORAL Responsiveness,Technical and INDIVIDUAL AVERAGE Consultant's Additional Presentation,Quality of TOTAL SCORE REFERENCESQualificationsofAVERAGETOTALStrengthofProjectINDIVIDUALAVERAGETOTAL Team Project Management SUBTOTAL-SUBTOTAL·Proposed Rates'Commitment to WRITTEN Creativityand Manager Communication Response to TOTAL-ORAL ORALUnderstandingApproachWRITTENWRITTENDBEInsightSkillsQuestions 50 150 PoorlGoodJMAXIMUMPOINTS302530858515YIN1001515101050Excellent BOBKENNEDY 28 23 28 79 14 14 9 9 46 DANIEL KAY 29 24 28 81 15 14 9 9 47 AEGIS GARY STALKER/ROGER HOLLY 28 23 26 77 77 15 y 92 12 13 8 8 41 45 137 Good RICHARDNAMBA 26 22 22 70 14 15 9 9 47 BRANDON DIPIETRO 28 24 28 80 13 13 10 8 44 BOBKENNEDY 20 17 27 64 11 11 7 7 36 DANIEL KAY 26 23 27 76 13 11 8 9 41BUREAU711485630 37 122VERITASGARYSTALKER/ROGER HOLLY 25 21 26 72 Y 9 8 7 RICHARD NAMBA 25 19 21 65 12 10 6 8 36 BRANDON DIPIETRO 28 23 27 78 13 12 10 7 42 BOB KENNEDY 21 20 24 65 11 10 6 6 33 DANIEL KAY 23 21 21 65 11 11 7 7 36 DUDEK GARYSTALKER/ROGERHOLLY 22 19 24 65 65 1 y 66 8 7 5 6 26 32 98 RICHARD NAMBA 20 17 18 55 10 9 6 6 31 BRANDON DIPIETRO 27 23 25 75 10 11 9 6 36 BOB KENNEDY 25 18 26 69 13 12 8 8 41 DANIEL KAY 20 21 23 64 10 12 8 9 39 HDR GARYSTALKER/ROGERHOLL Y 22 22 24 68 67 11 y 78 9 7 5 4 25 35 113 RICHARD NAMBA 20 19 20 59 10 8 6 6 30 BRANDON DIPIETRO 25 23 26 74 12 13 10 5 40 Review Panel does not see or consider rates when scoring other categones.Rates are scored by the PM,who is not on Review Panel. RATES SCORING CHART Consultant Proposed Rates Position Score AEGIS $500 lowest 15 BUREAU VERITAS $513 14 HDR $561 11 DUDEK $707 highest 1 COMPOSITE RATES AEGIS BUREAUVERITAS DUDEK HDR -----,,-.""""""... Senior Engr PM $135 $145 $195 $127 Assoc Engr $105 $113 $180 $117 Assist Engr II $95 $90 $152 $107 AdminlClerical $75 $70 $70 $100 Inspection $90 $95 $110 $110 $500 $513 $707 $561 P:IPublic-sISTAFF REPORTSI201OIBD 11-03-10,Attachment B Summary of Proposal Ranklngs -Rates and Interview,(DC-RP) 'Miro Meso ~ (") ....III ....-;lL if (') U'lMtilM SfirlMc c;D!~~o©'0C\J..."00(')...M t."~0 ..-. 'Z. Imp rial Beach MfrOl1i(iI' R(}StJ(v()rl' lij'n Poway M xi_. - EXHIBIT A OTAY WATER DISTRICT ARlGATION PLAN CHECK 'l:l f"..III'"..J~"-------"'-------------------------------------Ii•.~, j 'j ~.._----_..._-----------------------------_. Quality Assurance Approval Sheet Subject:Award of a Professional Services Contract for Recycled Water Plan Checking,Retrofit,and Inspection Services for Developer Projects Project No.:P1438-01000 Document Description:Staff Report for November 3,2010 Board Meeting Author: QA Reviewer: Manager: Dew(.(0 .Cl)()jrcl.:l>...e~~__ Printed Name ~ 0~\[a,~~~ure Thv~d ~I,a/tJ;r!_.J2·,&__ Printed Name Date Date (f AGENDA ITEM 8a TYPE MEETING: SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Asst.GM): STAFF REPORT Regular Boa~.MEETING DATE: James c~~Manager W.O.lG.F.NO: Joseph~.eac em,Chief Financial Officer German Alvarez,Assistant General Manager, Administration November 3,2010 DIV.NO.All Finance and SUBJECT:Approve the District's Audited Financial Statements for the Fiscal Year Ended June 30,2010 GENERAL MANAGER'S RECOMMENDATION: That the Board approves the District's Audited Financial Statements (Attachment B),including the Independent Auditors' unqualified opinion,for the fiscal year ended June 30,2010. COMMITTEE ACTION: See Attachment A. PURPOSE: To inform the Board of the significant financial events which occurred during the fiscal year ended June 30,2010 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 or weaknesses;therefore,there are no findings to present in their "Management Letter."See Attachment C. Tota~Assets: Total Assets increased by $55.5 million or 10.08%during Fiscal Year 2010 due primarily to the issuance of $51.2 million in new water revenue bonds At the same time there was an increase in capital assets of $17.0 million or 3.75%,net of related accumulated depreciation. TotaL LiabiLities &Net Assets: Total liabilities increased by approximately $52.6 million or 58.12%from the previous fiscal year.This was also directly attributable to the issuance of the new bonds.Overall,long- term debt increased $48.6 million or 70.30%.Additionally, accounts payable increased $3.8 million or 32.52%.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 increase in total assets,along with the decrease in total liabilities,yielded an increase in net assets (equity)of approximately $2.9 million or 0.63%. CapitaL Contributions: Capital contributions totaled $9.1 million during Fiscal Year 2010,an increase of $2.1 million or 29.76%over Fiscal Year 2009 contributions.This increase is mainly due to the District receiving $2.4 million more than expected in federal grant monies as a result of last minute availability of funds from the federal budget. ResuLts o£qperations: Operating revenues increased $3.4 million or 5.87%,mainly as a result of the overall increase in water rates from the prior fiscal year. While cost of water sales increased $2.1 million or 5.60%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-qperating Revenues &Expenses: Non-operating revenues dropped $5.3 million or 37.70%due to a combination of factors.First,there was a decrease in investment income due to a continuing drop in rates on investment securities.Also,in FY-2009 the District received a large,one-time legal settlement as a member of a class action lawsuit against a major supply vendor.Finally,in the prior year the District brought in capacity fee revenue to offset the write-off of a capital asset project that was deemed no longer economically viable for continued operations. 2 Additiona~Audit Correspondence: As a part of completing the audit engagement,the audit firm also provides the following letters summarizing their observations and conclusions concerning the District's overall financial processes- •Management Letter:The auditors did not identify any deficiencies in internal control that they considered to be material weaknesses.See Attachment C. •Capitalized Interest Letter:The auditors reviewed the District's new 2010 Water Revenue Bond documentation and determined that a different,more recently enacted accounting principle should be applied to account for the interest capitalization of this debt issue.This resulted in an audit reclassification from expense to capital projects of $436,369.See Attachment D. •Audit Committee Letter:There were no noted transactions entered into by the District during the year that were both significant and unusual,or transactions for which there was a lack of authoritative guidance or consensus. 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 E. •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 F. FISCAL IMPACT: None. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning,formalized financial policies, enhanced budget controls,fair pricing,debt planning,and improved financial reporting. 3 LEGAL IMPACT: None. Attachments: A)Committee Action Form B)Audited Annual Financial Statements C)Management Letter 0)Capitalized Interest Letter E)Audit Committee Letter F)Report on Applying Agreed-Upon Procedures 4 ATTACHMENT A Approve the District's Audited Financial Statements for the SUBJECT/PROJECT:Fiscal Year Ended June 30,2010 COMMITTEE ACTION: The Finance,Administration,and Communications Committee reviewed this item in detail at a meeting held on October 19, 2010.The following comments were made: • • • Mr.Harvey Schroeder,a partner at Diehl Evans &Company, LLP (DE&C),attended to present the results of the audit of the Fiscal Year Ended June 30,2010.It was noted that this is the second year that DE&C has performed the District's financial audit. Mr.Schroeder indicated that his firm's findings in the audit of the District's financial statements for Fiscal Year ending June 30,2010 is a clean unqualified opinion. He presented some of the highlights from the audit that included: o The District issued in 2010 $51.2 million of water revenue bonds which increased investments by $38.5 million as all the proceeds from the issuance had not been spent as of June 30,2010. o Revenues from water sales increased from $50.8 million in 2008 to $56.3 million in 2010 due to reduced rainfall in 2009 and the increase in rates. o Non-operating Revenues have decreased from $14 million in 2009 to $8.7 million in 2010 due to lower interest rates on investments during this last year and the receipt of proceeds from a legal settlement in Fiscal Year 2009. o Increases to Capital Assets are due to an increase in the construction of capital assets from $18.3 million in 2009 to $37.1 million in 2010 which is funded by the 2010 bond issuance.Also included in the capital assets increase are completed water system projects (from $403.1 million in 2009 to $409.5 million in 2010)and recycled water system projects (from $96.8 million in 2009 to $97.7 million in 2010) Y:\Board\CurBdPkg\FINANCE\CommMtgAuditedFinancialsl103lO.doc o The Statement of Net Assets shows an increase in Restricted Cash and Cash Equivalents from $1.76 million in 2009 to $21.1 million in 2010 and in the Restricted Investments from $0 in 2009 to $11.1 million primarily from the proceeds of the 2010 bond issuance. o The Statement of Net Assets also shows the switching of cash into investments dropping the Cash and Cash Equivalents from $50.8 million in 2009 to $40.18 million in 2010 and increasing Investments from $26.17 million in 2009 to $43.08 million in 2010. o The Statement of Net Assets notes that Noncurrent Assets have increased from $6.2 million in 2009 to $6.7 million in 2010 due to the District funding the Net OPEB Asset for current costs and annual required contributions. o The Current Liability of Current Maturities of Long- term Debt shows only a slight increase from $2.5 million in 2009 to $2.67 million in 2010 as the first principle payments on the $51.2 million in bonds issued in 2010 do not come due until 2012 for Series A and Series B is not due until 2026.Interest on the bonds is not due until 2011.The interest payments will be reflected in next year's financial statements. o The District had an Operating Loss of $14.4 million last year and $12.1 million in 2010 and interest expense increased from $1.3 million in 2009 to $2.4 million in 2010 where $510,000 was capitalized in Construction in Progress in 2010. o Total Net Assets increased from $460.3 million in 2009 to $463.3 in 2010 which is an increase for both years. o In the Statement of Cash Flows it shows an entry of $57.8 million for the new bond issuance and the refinancing of the General Obligation bonds in 2009. The District also retired debt of $7.2 million with total Cash and Cash Equivalents of $61.3 million for Fiscal Year end 2010 which is an increase from Fiscal Year 2009 of $8.7 million. o The Annual OPEB cost is $936,000 less the interest earned on the OPEB fund of $480,878 for a net cost of $455,122 in 2010 for a year end balance of $6.8 million in the OPEB asset.The OPEB asset increased $578,509 in Fiscal Year 2010.It was noted that this does not include the monies that the District holds in its own fund for OPEB.According to accounting rules the fund is not considered an asset unless the monies are placed in a Trust. • • • • • • • Mr.Schroeder also shared that their management letter finds that they did not identify any deficiencies in internal controls that would be considered material weaknesses. He noted that their firm also provides a letter regarding interest capitalization.His firm recommended that the interest calculation on the 2010 bonds be increased by $436,369 as per FASB 62. The Audit Committee Letter informs the board of the auditor's responsibilities,how the audit proceeded and their use of estimates in the financial statements.Mr. Schroeder advised that his firm did not have any difficulty in the audit and there were no disagreements with management.He stated that staff was very responsive and helpful during the audit. The last letter included with the audit is the agreed upon procedures for the District's Investment Policy.His firm reviewed all the procedures in this Fiscal Year and the past Fiscal Year and did not identify any issues in both procedures The committee inquired regarding the fluctuation in Depreciation Expense between 2008 and 2010,and what projects are included in the list of depreciated assets. Attached is the reasons for the fluctuation and the list of the referenced projects. The committee also inquired with regard to interest payments on the new bond issuance if it was a variable rate and if it is,is there a cap on the interest.It was indicated that the interest rate on the new issuance is fixed,however,the District does have variable debt.The committee requested that staff provide a list of the various debt issuances and their interest rates which has been attached. The committee noted that the District shows an operating income loss of $14.4 million in 2009 and $12.09 million in 2010 and inquired if this is typical.Staff noted that the main reason that the District shows an operating loss is due to depreciation.The District does not not fully fund depreciation,which is true of all water agencies.The District funds its Reserves appropriately according to its Reserve Policy to assure that the District has funding available in combination with debt to rebuild any asset that requires replacement/maintenance.It was noted that the Operating Income Loss should not be construed as a negative to the District and is typical of past. •The committee indicated that the interest rate of return of 7.75%seemed high with regard to the CalPERS pension when the current prime rate is 3.25%.It was indicated that CalPERS utilizes a 15 year rolling average and it is because of this 15 year rolling average that they have not adjusted their assumption of 7.75%.However,if we look back,CalPERS is likely ahead of the 7.75%return over the 15 year average. • • The committee inquired what the District's policy is on the length of time the District engages an auditing firm and if it was possible to have a different auditor at the same firm handle the District's audit the following year.It was indicated that typically the District works with a firm for approximately 5 (five)years,however,it is at the discretion of the board.It is possible to request a different auditor at the current firm as it is a large enough firm to accommodate such a request.The committee indicated that they felt that it would be good to have another point of view from a different individual and would like to discuss this possibility further. The committee indicated that the auditor had discussed fraud with the board and staff and inquired where in the audit documents that the dialogue on fraud is addressed. Mr.Schroeder indicated that it is part of the auditing standards to have fraud conversations with staff and the board and it would only be noted in the audit documents if fraud was identified.As fraud was not identified,it was not noted within the audit documents.The committee requested that Mr.Schroeder provide something that indicated that fraud was not identified.Mr.Schroeder indicated that his firm could add language to Attachment F (Other Matters/Other Comments).The language will indicate that his firm inquired about fraud with the board and staff and none knew of any issues. Il t I The committee supported staffs'recommendation and presentation to the full board as an action item. OTAYWATERDISTRICT DEPRECIATION EXPENSE 06/30/2010 Capital improvement projects are completed and become operational throughout a fiscal year,so the first full year ofdepreciation is not realized until the following fiscal year.The COPS-2007 bonds ($42 million)were issued in Mar-07,and the 2010 Water Revenue Bonds ($51.2 million) were issued in Apr-l0.This has helped fund several major infrastructure CIP projects through the FY2008 -FY2010 time period and accounted for a modest depreciation expense increase over the 3-year span. During Apr -Jun 2008,Finance Department completed a conversion of all capital asset and depreciation records into the new Eden Fixed Assets accounting module.This included a comprehensive review and write-off of $4.7 million long-term fixed assets that were obsolete and/or no longer serviceable.A one-time charge to depreciation expense was made for approximately $2 million due to the remaining book value ofthose assets.As a result, depreciation expense in FY-2009 showed a decrease from the FY-2008 year's high amount. Expenses then increased again in FY-2010 as a result ofthe $76.9 million in CIP additions over the previous 2-years. FY-2008: ~Depreciation -$13,040,572 ~CIP Additions -$33,422,279 ~Major Projects: 1.450-1 Recycled Reservoir 2.680-1 Recycled Pump Station 3.AMR Meter Replacements 4.IT Network &Hardware FY-2009: ~Depreciation -$12,475,714 ~CIP Additions -$43,494,058 ~Major Projects: 1.640-1 &640-2 Reservoirs 2.Treatment Plant AirVac Replacements 3.12"Water Line Utility Relocation 4.AMR Meter Replacements FY-2010: ~Depreciation -$13,297,497 ~CIP Additions -$11,467,436 ~Major Projects: 1.850-4 Reservoir 2.IT Network &Hardware 3.AMR Meter Replacements 4.450-1 Res Disinfection Facility $9,540,409 $8,179,040 $3,200,539 $1,060,821 $27,523,021 $1,298,464 $1,236,150 $1,204,200 $3,352,624 $1,362,848 $1,321,085 $778,158 OTAY WATER DISTRICT DEBT INTEREST RATES 06/30/2010 Bond Maturity Dates Interest Rate 1.2009 GO BONDS:2010 -2015 3.00% 2016 3.25% 2017 -2022 4.00% 2.2004 COPS:2005 -2009 3.000% 2010 3.100% 2011 3.250% 2012 3.400% 2013 3.600% 2014 3.750% 2015 3.900% 2016 -2017 4.000% 2018 4.200% 2019 4.250% 2020 4.375% 2021-2022 4.500% 2023 4.625% 3.2007 COPS:2008 -2009 3.700% 2010 -2015 3.750% 2016 -2017 3.800% 2018 3.875% 2019 3.900% 2020-2021 4.000% 2022-2023 4.100% 2024 4.125% 2025 4.200% 2026 -2031 4.250% 2036 4.375% 4.2010 BABS:2011-2012 2.000% 2013 -2014 3.000% 2015 -2018 4.000% 2019 -2023 5.000% 2024 5.250% 2030 6.377% 2040 6.577% I 5.1996 COPS:1997 -2026 See Attached COPS 1996 INTEREST RATE ** Fiscal Year 2008 Fiscal Year 2009 Fiscal Year 2010 DATE RATE DATE RATE DATE RATE 06/27/07 3.75%06/25/08 1.33%07/01/09 0.23% 07/04/07 3.S8%07/02/08 1.2S%07/08/09 0.20% 07/11/07 3.SS%07/09/08 1.13%07/1S/09 0.22% 07/18/07 3.S6%07/16/08 1.38%07/22/09 0.2S% 07/2S/07 3.S8%07/23/08 2.1S%07/29/09 0.28% 08/01/07 3.48%07/30108 2.00%08/0S/09 0.23% 08/08/07 3.46%08/06/08 1.S6%08/12/09 0.2S% 08/1S/07 3.64%08/13/08 1.46%08/19/09 0.20% 08/22/07 3.79%08/20108 1.4S%08/26/09 0.17% 08/29/07 3.87%08/27/08 1.63%09/02/09 0.1S% 09/0S/07 3.78%09/03/08 1.43%09/09/09 0.1S% 09/12/07 3.63%09/10108 1.SS%09/16/09 0.17% 09/19/07 3.71%09/17/08 4.18%09/23/09 0.40% 09/26/07 3.81%09/24/08 7.78%09/30109 0.32% 10103/07 3.48%10101/08 S.38%10107/09 0.2S% 10/10107 3.47%10108/08 4.4S%10/14/09 0.2S% 10/17/07 3.42%10/1S/08 3.20%10/21/09 0.2S% 10/24/07 3.38%10/22/08 1.8S%10/28/09 0.2S% 10/31/07 3.16%10/29/08 1.4S%11/04/09 0.20% 11/07/07 3.28%11/0S/08 0.80%11/11/09 0.28% 11/14/07 3.S2%11/12/08 0.6S%11/18/09 0.28% 11/21/07 3.S0%11/19/08 O.SS%11/2S/09 0.2S% 11/28/07 3.S0%11/26/08 O.4S%12/02/09 0.21% 12/0S/07 3.32%12/03/08 0.3S%12/09/09 0.21% 12/12/07 3.02%12/10108 0.3S%12/16/09 0.2S% 12/19/07 3.02%12/17/08 0.6S%12/23/09 0.28% 12/26/07 3.3S%12/24/08 0.80%12/30109 0.22% 01/02/08 3.00%12/31/08 O.4S%01/06/10 0.1S% 01/09/08 2.9S%01/07/09 0.2S%01/13/10 0.1S% 01/16/08 2.8S%01/14/09 0.1S%01/20/10 0.18% 01/23/08 2.S2%01/21/09 0.1S%01/27/10 0.20% 01/30108 2.0S%01/28/09 0.20%02/03/10 0.14% 02/06/08 1.60%02/04/09 0.1S%02/10/10 0.21% 02/13/08 1.10%02/11/09 0.20%02/17/10 0.23% 02/20108 2.10%02/18/09 0.2S%02/24/10 0.19% 02/27/08 3.17%02/2S/09 0.2S%03/03/10 0.16% 03/0S/08 2.60%03/04/09 0.2S%03/10/10 0.23% 03/12/08 2.60%03/11/09 0.2S%03/17/10 0.23% 03/19/08 1.90%03/18/09 0.2S%03/24/10 0.30% 03/26/08 1.8S%03/2S/09 0.20%03/31/10 0.28% 04/02/08 1.72%04/01/09 0.1S%04/07/10 0.2S% 04/09/08 1.6S%04/08/09 0.2S%04/14/10 0.30% 04/16/08 1.7S%04/1S/09 0.2S%04/21/10 0.31% 04/23/08 2.20%04/22/09 0.30%04/28/10 0.28% 04/30108 3.10%04/29/09 0.20%OS/OS/10 0.26% OS/07/08 2.20%OS/06/09 0.17%OS/12/10 0.28% OS/14/08 1.6S%OS/13/09 0.1S%OS/19/10 0.32% OS/21 108 1.S3%OS/20109 0.10%OS/26/10 0.30% OS/28/08 1.43%OS/27/09 0.10%06/02/10 0.26% 06/04/08 1.29%06/03/09 0.10%06/09/10 0.28% 06/11/08 1.48%06/10109 0.2S%06/16/10 0.31% 06/18/08 1.4S%06/17/09 0.2S%06/23/10 0.30% 06/25/08 1.33%06/24/09 0.25%06/30/10 0.25% **Bond Matunty Dates:1997 -2026 Bonds 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 (SIFMA)index. OTAY WATER DISTRICT FINANCIAL STATEMENTS WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS JUNE 30,2010 AND 2009 Attachment B JUNE 30,2010 and 2009 Page Number Independent Auditors'Report Management's Discussion and Analysis Basic Financial Statements: Statements ofNet Assets Statements ofRevenues,Expenses,and Changes in Net Assets Statements ofCash Flows Notes to Financial Statements Required Supplementary Information Schedule ofFunding Progress for PERS Schedule ofFunding Progress for DPHP 2-6 7 - 8 9 10 -11 12 -35 36 36 DIEHL,EVANS &COMPANY,LLP CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA92008-2389 (760)729-2343 0 FAX (760)729-2234 www.diehlevans.com October 12,2010 INDEPENDENT AUDITORS'REPORT Board ofDirectors Otay Water District Spring Valley,California 'PHILIP H.HOLTKAMP,CPA 'THOMAS M.PERLOWSKI,CPA 'HARVEYJ.SCHROEDER,CPA KENNETH R.AMES,CPA WILLIAM C.PENTZ,CPA MICHAELR.LUDIN,CPA CRAIG W.SPRAKER,CPA NITIN P.PATEL,CPA ROBERT J.CALLANAN,CPA *APROFF"~SIONAl,~ORPORI\TION We have audited the accompanying basic financial statements of Otay Water District as of and for the years ended June 30,2010 and 2009,as listed in the table of contents,These basic financial statements are the responsibility of the Otay Water District's management.Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation.We believe that our audits provide a reasonable basis for our opinions. In our opinion,the basic financial statements referred to above present fairly,in all material respects,the financial position ofthe Otay Water District as ofJune 30,2010 and 2009,and the changes in financial position and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States ofAmerica, Accounting principles generally accepted in the United States of America require that the management's discussion and analysis,PERS Defined Benefit Pension Plan -schedule of funding progress,and other post- employment benefit plan -schedule of funding progress,as identified in the accompanying table ofcontents be presented to supplement the basic financial statements.Such information,although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic,or historical context.We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit ofthe basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. OTHER OFFICES AT:613 w.VALLEY PARKWAY,SUITE 330 ESCONDIDO,CALIFORNIA 92025-2598 (760)741-31410 FAX (760)741-9890 5 CORPORATE PARK,SUITE 100 IRVINE,CALIFORNIA 92606-5165 (949)-399-0600 •FAX (949)399-0610 (;~~:I Managemenfs Discussion and Analysis ~~ As management ofthe Otay Water District (the"District"),we offer readers ofthe District's financial statements this narrative overview and analysis ofthe District's financial performance during the fiscal year ending June 30,2010.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 exceeded its liabilities at the close ofthe most recent fiscal year by $463.3 million (net assets).Ofthis amount,$80.2 million (unrestricted net assets)may be used to meet the District's ongoing obligations to citizens and creditors. •The District's total net assets increased by $2.9 million.This is primarily attributable to the increase in capital contributions of$9.1 million during the fiscal year. 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 ofthe following:1)Statement ofNet Assets,2)Statement ofRevenues,Expenses and Changes in Net Assets, 3)Statement ofCash Flows,and 4)Notes to the financial Statements.This report also contains other supplementary information in addition to the basic financial statements. The Statement ofNet Assets presents information on all ofthe District's assets and liabilities,with the difference between the two reported as net assets.Over time,increases or decreases in net assets may serve as a useful indicator of whether the financial position ofthe District is improving or weakening. The Statement ofRevenues,Expenses and Changes in Net Assets presents information showing how the District's net assets changed during the most recent fiscal year.All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,regardless ofthe timing ofrelated cash flows.Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,uncollected taxes and earned but unused vacation leave). The Statement ofCash Flows presents information on cash receipts and payments for the fiscal year. The Notes to the Financial Statements provide additional information that is essential to a full understanding ofthe data supplied in each ofthe specific financial statements listed above. In addition to the basic financial statements and accompanying notes,this report also presents certain required supplementary information concerning the District's progress in funding its obligation to provide pension benefits to its employees. Financial Analysis As noted earlier,net assets may serve over time as a useful indicator ofan entity's financial position.In the case ofthe District,assets exceeded liabilities by $463.3 million at the close ofthe most recent fiscal year. By far the largest portion ofthe District's net assets,$377.9 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 used to liquidate these liabilities. 2 '6 Management's Discussion and Analysis Statements ofNet Assets (In Millions ofDollars) 2010 2009 2008 Assets Cun'ent and Other Assets $135.4 $96.8 $106.2 Capital Assets 471.1 454.1 446.7 Total Assets 606.5 550.9 552.9 Liabilities Long-term Debt Outstanding 117.7 69.1 71.6 Other Liabilities 25.5 21.5 24.5 Total Liabilities 143.2 90.6 96.1 Net Assets Invested in Capital Assets Net ofRelated Debt 377.9 382.4 372.7 Restricted for Debt Service 5.2 1.8 3.8 Unrestricted 80.2 76.1 80.3 Total Net Assets $463.3 $460.3 $456.8 At the end ofFY-2010 the District is able to report positive balances in all categories ofnet assets.This situation also held true for the prior two fiscal years.In FY-2010 total Net Assets increased approximately $2.9 million,to $463.3 million,as compared to FY-2009 when Net Assets increased by over $3.5 million.While the District's operations and population continue to grow,albeit at slower rates than in prior years,the pattern ofreduced growth ofthe District's Net Assets is indicative ofthe reduction in new development projects within the District.This reduction is a result ofthe ongoing national housing slump and financial crisis. In FY-2009 the decrease in Cun'ent and Other Assets of$9.4 million corresponds with the increase in Capital Assets of$7.4 million (net ofaccumulated depreciation),due primarily to the District's Capital Improvement Plan (CIP),which was financed in part by the funds remaining from the FY-2007 issuance of$42 million in Certificates ofParticipation (COPS- 2007). In FY-2010 the District issued $51.2 million ofnew 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 ofthe 2010 Water Revenue Bonds is also reflected in the increase in Capital Assets of$17.0 million,as the District continued its CIP program.(See Note3 in the Notes to Financial Statements). 3 .j':,jI:f>[r~.(o~~yJ'Management's Discussion and Analysis ~.n~ Statements ofRevenues,Expenses,and Changes in Net Assets (In Millions ofDollars) 2010 2009 2008 Water Sales $56.3 $52.4 $50.8 Wastewater Revenue 2.3 2.2 2.4 Connection and Other Fees 1.9 2.5 2.5 Non-operating Revenues 8.7 14.0 13.6 Total Revenues 69.2 71.1 69.3 Depreciation Expense 13.3 12.5 13.0 Other Operating Expense 59.3 59.0 58.5 Non-operating Expense 2.8 3.1 2.9 Total Expenses 75.4 74.6 74.4 Loss Before Capital Contributions (6.2)(3.5)(5.1) Capital Contributions 9.1 7.0 14.9 Change in Net Assets 2.9 3.5 9.8 BeginningNet Assets 460.3 456.8 447.0 Ending Net Assets .$463.2 $460.3 $456.8 Water Sales increased by $1.6 million in FY-2009 and $3.9 million in FY-2010,mainly due to reduced rainfall during FY- 2009 as well as rate increases in both years.The slowdown in growth throughout the District was also reflected in the decrease in Connection and Other Fees of$0.6 million in FY-2010. Non-operating Revenues increased by $0.4 million in FY-2009 due primarily to increased property tax revenues.However in FY-201O,Non-operating Revenues decreased by $5.3 million due to a combination offactors.First,there was a decrease in investment income due to a continuing drop in rates on investment 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 the prior year the District brought in capacity fee revenue to offset the write-off ofa capital asset project that was deemed no longer economically viable for continued operations. Capital Contributions were $14.9 million in FY-2008 due to the completion ofseveral developer construction projects. However,because ofthe nationwide housing mortgage crisis throughout the last several years,developers have either slowed-down or totally stopped work on many projects until economic conditions improve and the demand for growth returns.This has resulted in a decrease in Capital Contributions of$7.9 million in FY-2009.By FY-201O this slowdown appears to have stabilized,while the District received $2.4 million more than expected in federal grant monies due to last minute availability offunds from the federal budget. 4 ,,,,~:f.~I,~Management's Discussion and Analysis Capital Assets and Debt Administration Capital Assets,The District's capital assets as ofJune 30,2010,totaled $471.1 million (net ofaccumulated depreciation). Included in this amount is land.The total increase in the District's capital assets was 1.7%for FY-2009 and 3.7%in FY- 2010. Capital Assets (In Millions ofDollars) 2010 2009 2008 Land $13,6 $13.4 $13.0 Construction in Progress 37.1 18.3 42.3 Water System 409.5 403.1 365.6 Recycled Water System 97.7 96.8 93.0 Sewer System 37.4 37.2 36.7 Field Equipment 18.5 18.2 17.6 Buildings 9.5 9.5 9.5 Transportation Equipment 3.3 3.3 3.1 Communication Equipment 1.3 0.8 0.7 Office Equipment 18.4 17.4 16.8 646.3 618.0 598.3 Less Accumulated Depreciation 075.2)063.9)051.6) Net Capital Assets $471.1 $454.1 $446.7 As indicated by figures in the table above,the majority ofcapital assets added during both fiscal years were related to the potable and recycled water systems.In addition,the majority ofthe 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 ofthe Notes to Financial Statements. Long-term Debt.At June 30,2010,the District had $117.7 million in outstanding debt which consisted ofthe following: General Obligation Bonds Certificates ofParticipation Revenue Bonds Total Long-term Debt $ $ 6.8 59.7 51.2 117.7 Additional information on the District's long-term debt can be found in Note 5 ofthe Notes to Financial Statements. 5 G~l Management's Discussion and Analysis~~ Fiscal Year 2010-2011 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 ofa combination ofthe slowing economy and expanded efforts to promote water conservation.After years ofrecord low precipitation that dramatically curtailed snow runofffrom the Sierra Nevada Mountains,California's govemor declared an official statewide drought in June 2008.Following the governor's action,all local jurisdictions were urged to implement water conservation ordinances and to "significantly increase efforts"to conserve water.In addition to the drought,federal court orders have curtailed water deliveries from Northern California due to environmental factors in the Sacramento-San Joaquin Bay Delta.A greater focus on environmental conditions in the Bay Delta brings added challenges to the delivery ofwater through the State Water Project.In order to maintain the ongoing supply ofwater to Southem California the various and competing interests need to arrive at genuine solutions.The combination ofthese factors will add to the cost ofproviding water.At the same time, ongoing water supply rate increases from the Metropolitan Water District (MWD)and the San Diego County Water Authority (CWA)have required the District to implement rate increases to pass-through these costs,as well as increases in energy costs and operating costs. The District currently provides water service to about 70%of its total projected population,serving approximately 206,000 people.Long-term,this percentage should continue to increase as the District's service area continues to develop and grow.Ultimately,the District is projected to serve approximately 295,000 people,with an average daily demand of55 million gallons per day (MGD).Currently,the District services the needs ofthis growing population by purchasing water from CWA,who in tum purchases its water from MWD and the Imperial Irrigation District (lID).Otay takes delivery of the water through several connections oflarge diameter pipelines owned and operated by CWA.The District cun'ently receives treated water from CWA,and the Helix Water District (HWD)by contract with CWA.In addition,the District has an emergency agreement with the City ofSan Diego in the case ofa shutdown ofthe main treated water source. Through innovative agreements like this,benefits can be achieved by both parties by using excess capacity ofanother agency,and diversifying local supply,thereby increasing reliability. Financial The District is projected to deliver approximately 29,900 acre-feet ofpotable water to 48,060 potable customer accounts during Fiscal Year 2010-2011.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 offoreclosures throughout the District.Additionally,the crisis in the banking and financial industry has begun to have a ripple effect ofemployee layoffs across a wide swath ofthe business community. One of the subsequent results ofthese two broad events is the relocation ofmany homeowners and renters into new housing arrangements throughout San Diego County.Even with the housing patterns change throughout the District, people's need for water remains an underlying constant.Staffcontinues working diligently on developing new water supplies as it addresses the financial impacts ofconservation,preparing for the possibility ofa continued water shortage, and prolonged sales reductions. Management is unaware ofany other conditions that could have a significant impact on the District's current financial position,net assets or operating results. Contacting the District's Financial Management This financial report is designed to provide a general overview ofthe Otay Water District's finances for the Board of Directors,taxpayers,creditors,and other interested parties.Questions concerning any ofthe 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. 6 IG:~~~STATEMENTS OF NET ASSETS '~-;.#~JUNE 30,2010 AND 2009 2010 2009 ASSETS CUITent Assets: Cash and cash equivalents (Notes 1 and 2)$40,180,519 $50,823,237 Restricted cash and cash equivalents (Notes I and 2)21,131,924 1,760,631 Investments (Note 2)43,085,300 26,169,080 Restricted investments (Notes 1 and 2)11,150,549 Accounts receivable,net 8,959,367 8,029,609 Accrued interest receivable 239,355 319,186 Taxes and availability charges receivable,net 366,535 413,000 Restricted taxes and availability charges receivable,net 186,813 190,151 Inventories 954,007 816,865 Prepaid expenses and other current assets 626,421 976,045 Total Current Assets 126,880,790 89,497,804 Noncurrent Assets: Net OPES asset (Note 8)6,783,385 6,204,876 Deferred bond issuance costs (Note 4)1,703,282 1,142,762 Capital Assets (Note 3): Land 13,620,963 13,402,840 Construction in progress 37,081,849 18,280,278 Capital assets,net ofdepreciation 420,363,833 422,369,157 Total capital assets,net ofdepreciaton 471,066,645 454,052,275 Total Noncurrent Assets 479,553,312 461,399,913 Total Assets 606,434,102 550,897,717 See accompanying independent auditors'report and notes to financial statements. (Continued) 7 I~:'~~:i STATEMENTS OF NET ASSETS (CONTINUED) x~.;.#'JUNE 30,2010 AND 2009 2010 2009 LIABILITIES Current Liabilities: Current maturities oflong-term debt (Note 5)2,668,734 2,521,772 Accounts payable 15,327,365 11,565,953 Accrued payroll liabilities 2,743,408 2,548,731 Other accrued liabilities 638,015 444,875 Customer deposits 2,146,360 2,806,990 Accrued interest 1,154,286 706,934 Liabilities Payable From Restricted Assets: Restricted accrued interest 100,326 153,270 Total Current Liabilities 24,778,494 20,748,525 Noncurrent Liabilities: Long-term debt (Note 5): General obligation bonds 6,763,127 7,291,575 Certificates ofparticipation 59,694,612 61,468,693 Revenue bonds 51,255,224 Notes payable 6,010 359,744 Other noncurrent liabilities 684,309 684,309 Total Noncurrent Liabilities 118,403,282 69,804,321 Total Liabilities 143,181,776 90,552,846 NET ASSETS Invested in capital assets,net ofrelated debt 377,855,787 382,410,491 Restricted for debt service 5,192,111 1,797,512 Unrestricted 80,204,428 76,136,868 Total Net Assets $463,252,326 $460,344,871 See accompanying independent auditors'report and notes to financial statements.8 (~~~l.STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS "~,;ff FOR THE YEARS ENDED JUNE 30,2010 AND 2009 2010 2009 OPERATING REVENUES Water sales $56,249,816 $52,428,648 Wastewater revenue 2,299,585 2,182,429 Connection and other fees 1,907,797 2,492,234 Total Operating Revenues 60,457,198 57,103,311 OPERATING EXPENSES Cost ofwater sales 39,338,495 37,252,482 Wastewater 2,169,988 1,890,804 Administrative and general 17,750,713 19,888,161 Depreciation 13,297,497 12,475,714 Total Operating Expenses 72,556,693 71,507,161 Operating Income (Loss)(12,099,495)(14,403,850) NONOPERATING REVENUES (EXPENSES) Investment income 1,323,844 2,252,335 Taxes and assessments 3,973,328 4,586,823 Availability charges 670,784 625,065 Gain (loss)on sale ofcapital assets (143,086)5,206 Miscellaneous revenues 2,921,016 6,569,644 Donations (100,240)(95,270) Interest expense (2,404,530)(1,340,110) Miscellaneous expenses (303,541)(1,671,597) Total Nonoperating Revenues (Expenses)5,937,575 10,932,096 Income (Loss)Before Capital Contributions (6,161,920)(3,471,754) Capital Contributions 9,069,375 6,989,208 Changes in Net Assets 2,907,455 3,517,454 Total Net Assets,Beginning 460,344,871 456,827,417 Total Net Assets,Ending $463,252,326 $460,344,871 See accompanying independent auditors'report and notes to financial statements.9 ,f..~~~?;r STATEMENTS OF CASH FLOWS~:~J)FOR THE YEARS ENDED JUNE 30,2010 AND 2009 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $56,959,013 $54,358,847 Receipts from connections and other fees 1,907,797 2,492,234 Other receipts 1,837,028 5,538,973 Payments to suppliers (36,816,755)(43,072,805) Payments to employees (18,659,239)(18,947,144) Other payments (261,742)(1,640,481 ) Net Cash Provided (Used)by Operating Activities 4,966,102 (1,270,376) CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Receipts from taxes and assessments 4,023,131 4,520,867 Receipts from property rents and leases 1,083,988 1,070,881 Net Cash Provided (Used)by Noncapital and Related Financing Activities 5,107,119 5,591,748 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital contributions 7,946,690 4,014,110 Proceeds from sale ofcapital assets 94,118 5,206 Proceeds from debt related taxes and assessments 670,784 625,065 Net proceeds from issuance oflong-telm debt 57,826,816 Retirements oflong-term debt (7,231,011) Principal payments on long-tenn debt (2,521,772) (2,445,214) Interest payments and fees (2,477,159) (1,366,547) Acquisition and construction ofcapital assets (28,990,017)(16,838,494) Net Cash Provided (Used)by Capital and Related Financing Activities 25,318,450 (16,005,874) CASH FLOWS FROM INVESTING ACTIVITIES Interest received on investments 1,336,944 2,494,196 Proceeds from sale and maturities ofinvestments 53,997,000 70,703,937 Purchase of investments (81,997,040)(36,035,657) Net Cash Provided (Used)by Investing Activities (26,663,096)37,162,476 Net Increase (Decrease)in Cash and cash equivalents 8,728,575 25,477,974 Cash and cash equivalents,Beginning 52,583,868 27,105,894 Cash and cash equivalents,Ending $61,312,443 $52,583,868 See accompanying independent auditors'report and notes to financial statements. (Continued) 10 t,~;:~STATEMENTS OF CASH FLOWS (CONTINUED) ~>r-tl-P FOR THE YEARS ENDED JUNE 30,2010 AND 2009 2010 2009 Reconciliation of operating income (loss)to net cash flows provided (used)by operating activities: Operating income (loss)$(12,099,495)$ (14,403,850) Adjustments to reconcile operating income to net cash provided (used)by operating activities: Depreciation 13,297,497 12,475,714 Miscellaneous revenues 1,837,028 5,538,973 Miscellaneous expenses (261,742)(1,640,481) (Increase)decrease in accounts receivable (929,758)(339,889) (Increase)decrease In inventory (137,142)(105,625) (Increase)decrease in net OPEB asset (578,509)(555,868) (Increase)decrease in prepaid expenses and other current assets 349,624 931,983 Increase (decrease)in accounts payable 3,761,412 (2,139,613) Increase (decrease)in accrued payroll and related expenses 194,677 57,549 Increase (decrease)in other accrued liabilities 193,140 (1,170,528) Increase (decrease)in customer deposits (660,630)87,659 Increase (decrease)in prepaid capacity fees (6,400) Net Cash Provided (Used)By Operating Activities $4,966,102 $(1,270,376) Schedule ofCash and Cash Equivalents; CUiTent assets: Cash and cash equivalents $40,180,519 $50,823,237 Restricted cash and cash equivalents 21,131,924 1,760,631 Total Cash and Cash Equivalents $61,312,443 $52,583,868 Supplemental Disclosures: Non-cash Investing and Financing Activities Consisted ofthe Following: Contributed Capital for Water and Sewer System Change in Fair Value ofInvestments and Recognized Gains/Losses Amortization Related to Long-Tenn Debt See accompanying independent auditors'report and notes to financial statements. $1,122,685 230,747 142,039 $2,975,098 21,613 126,387 II .f;~~NOTES To FINANCIAL STATEMENTS'~Y~'YEARS ENDED JUNE 30,2010 AND 2009 Reporting Entity and Summary of Significant Accounting Policies.....12 -14 Cash and Investments............... ..........•....15 -19 Capital Assets.. .........••.....................20 -21 Other Noncurrent Assets..................................................21 Long-Term Debt................................22 -26 Net Assets...........26 Defmed Benefit Pension Plan 26 -27 Other Post Employment Benefits ;.............28 -30 Water Conservation Authority.............•.,............................30 Commitments and Contingencies...............................31 Risk Management..........................••31 -32 Interest Expense....•....,.............................32 Segment Information.........................................................33 -35 NOTE 1 2 3 4 5 6 7 8 9 10 11 12 13 DESCRIPTION PAGE Required Supplementary Information: Schedule ofFunding Progress for PERS..........36 2 Schedule ofFunding Progress for DPHP..36 f"o~:~~j,NOTES To FINANCIAL STATEMENTS "~~:io/'YEARS ENDED JUNE 30,2010 AND 2009 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A)Reporting Entity Otay Water District (the "District")is a public entity established in 1956 pursuant to the Municipal Water District Law of 1911 (Section 711 et.Seq.of the California Water Code)for the purpose of providing water and sewer services to the properties in the District.The District is governed by a Board of Directors consisting of five directors elected by geographical divisions based on District population for a four-year alternating tenn. B)Measurement Focus,Basis of Accounting and Financial Statement Presentation The basic financial statements ofthe Otay Water District have been prepared in conformity with accounting principles generally accepted in the United States of America.The Governmental Accounting Standards Board (GASB)is the accepted standard setting body for governmental accounting financial reporting purposes. The District reports its activities as an enterprise fund,which is used to account for operations that are financed and operated in a manner similar to a private business enterprise,where the intent of the District is that the costs (including depreciation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.Revenues and expenses are recognized on the accrual basis.Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period incurred, regardless ofwhen the related cash flow takes place. Net assets of the District are classified into three components:(1)invested in capital assets,net of related debt,(2) restricted net assets,and (3)unrestricted net assets.These classifications are defined as follows: Invested in Capital Assets,Net ofRelated Debt This component of net assets consists of capital assets,net of accumulated depreciation and reduced by the outstanding balances of notes or borrowing that are attributable to the acquisition of the asset,construction,or improvement of those assets.Ifthere are significant unspent related debt proceeds at year-end,the portion ofthe debt attributable to the unspent proceeds are not included in the calculation ofinvested in capital assets,net ofrelated debt. Restricted Net Assets This component of net assets consists ofconstraints 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 component of net asset consists of net assets that do not meet the definition of"invested in capital assets,net of related debt"or "restricted net assets". 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 pe11ain directly to the furnishing ofthose services.Nonoperating revenues and expenses are those revenues and expenses generated that are not directly associated with the nonnal business ofsupplying water and wastewater treatment services. The District recognizes revenues from water sales,wastewater revenues,and meter fees as they are earned.Taxes and assessments are recognized as revenues based upon amounts reported to the District by the County ofSan Diego,net of allowance for delinquencies of$61,483 and $67,017 at June 30,2010 and 2009,respectively. See independent auditors'report.12 ,~~~~.NOTES To FINANCIAL STATEMENTS.~~.YEARS ENDED JUNE 30,2010 AND 2009 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued B)Measurement Focus,Basis ofAccounting and Financial Statement Presentation -Continued Additionally,capacity fee contributions received which are related to specific operating expenses are offset against those expenses and included in Cost of Water Sales in the Statement of Revenues and Expenses and Changes in Net Assets. When both restricted and unrestricted resources are available for use,it is the District's practice to use restricted resources first,then unrestricted resources as they are needed. The District has elected under GASB Statement No.20,Accounting and Financial Reporting for Proprietary Funds and Other Govemmental 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 conflict with GASB pronouncements. C)Statement ofCash 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,ofthree months or less to be cash equivalents. D)Investments The District's investments are stated at fair value,except for short-term investments,which are reported at cost, which approximates fair value.Investments in governmental investment pools are reported on the fair value per share ofthe pool's underlying portfolio. E)Inventory and Prepaids Inventory consists primarily of materials used in the construction and maintenance ofthe water and sewer system and is valued at weighted average cost.Both inventory and prepaids use the consumption method whereby they are reported as an asset and expensed as they are consumed. F)Capital Assets Capital assets are recorded at cost,where historical records are available,and at an estimated historical cost where no historical records exist.Infrastructure assets in excess of $20,000 and other capital assets in excess of $10,000 are capitalized if they have an expected useful life of two years or more.The District will also capitalize individual purchases under the capitalization threshold ifthey are part ofa new capital program.The cost ofpurchased and self- constructed additions to utility plant and major replacements ofproperty are capitalized.Costs include materials,direct labor,transp0l1ation,and such indirect items as engineering,supervision,employee fl'inge benefits,and interest incurred during the construction period.Repairs,maintenance,and minor replacements of property are charged to expense.Donated assets are capitalized at their approximate fair market value on the date contributed. The District capitalizes interest on construction projects up to the point in time that the project is substantially completed.Capitalized interest 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.13 "'~~~,~C)TA~'NOTES To FINANCIAL STATEMENTS~~YEARS ENDED JUNE 30,2010 AND 2009 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued F)Capital Assets -Continued Depreciation is calculated using the straight-line method over the following estimated useful lives: 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 tetmination or retirement. H)Restricted Assets and Liabilities Certain current liabilities have been classified as current liabilities payable from restricted assets as they will be funded from restricted assets. I)Allowance for Doubtful Accounts The District charges doubtful accounts arising from water sales receivable to bad debt expense when it is probable that the accounts will be uncollectible.Uncollectible accounts are determined by the allowance method based upon prior experience and management's assessment of the collectability of existing specific accounts.The allowance for doubtful accounts were $12,937 and $17,531 for 2010 and 2009 respectively. J)Use ofEstimates The preparation of financial statements in confOlmity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcontingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates. K)Property Taxes Tax levies are limited to 1%offull market value (at time ofpurchase)which results in a tax rate of$1.00 per $100 assessed valuation,under the provisions of Proposition 13.Tax rates for voter-approved indebtedness are excluded from this limitation. The County of San Diego (the "County")bills and collects property taxes on behalfof the District.The County's tax calendar year is July 1 to June 30.Property taxes attach as a lien on property on January 1.Taxes are levied on July I and are payable in two equal installments on November 1 and February I,and become delinquent after December 10 and April 10,respectively. L)Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. See independent auditors'report.14 W!:r~~TAV~\NOTES To FINANCIAL STATEMENTS'~;;:J#'YEARS ENDED JUNE 30,2010 AND 2009 2)CASH AND INVESTMENTS The primary goals of the District's Investment Policy are to assure compliance with all Federal,State,and Local laws governing the investment of funds under the control of the organization,protect the principal of investments entrusted,and generate income under the parameters ofsuch policies. Cash and Investments are classified in the accompanying financial statements as follows: Statement ofNet Assets: Current Assets Cash and Cash Equivalents Restricted Cash and Cash Equivalents Investments Restricted Investments Total Cash and Investments $ $ 2010 2009 40,180,519 $50,823,237 21,131,924 1,760,631 43,085,300 26,169,080 1l,150,549 115,548,292 $78,752,948 Cash and Investments consist ofthe following: 2010 2009 Cash on Hand $2,800 $2,800 Deposits with Financial Institutions 4,158,859 5,701,125 Investments Ill,386,633 73,049,023 Total Cash and Investments $115,548,292 $78,752,948 Investments Authorized by the California Government Code and the District's Investment Policy The table below identifies the investment types that are authorized for the District by the California Government Code (or the District's Investment Policy,where more restrictive).The table also identifies certain provisions of the California Government Code (or the District's Investment Policy,where more restrictive)that address interest rate risk,credit risk, and concentration of credit risk.This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the District,rather than the general provisions of the California Government Code orthe District's Investment Policy. Authorized Investment Type U.S.Treasury Obligations U.S.Government Sponsored Entities Certificates ofDeposit Corporate Medium-Term Notes Commercial Paper Money Market Mutual Funds County Pooled Investment Funds Local Agency Investment Fund (LAIF) Maximum Maturity 5 years 5 years 5 years 5 years 270 days N/A N/A N/A Maximum Percentage OfPortfolio(I) None None 15% 15% 15% 15% None None Maximum Investment In One Issuer None None None None 10% None None None (I)Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. See independent auditors'report.15 ~~:~~~.NOTES To FINANCIAL STATEMENTS ~.:;;;:;#'YEARS ENDED JUNE 30,2010 AND 2009-=- 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 oftheCalifornia Government Code or the District's Investment Policy. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market lllterest rates wil1 adversely affect the fair value of an investment. Generally,the longer the maturity of an investment,the greater the sensitivity of its fair value to changes in market interest rates.One ofthe 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 flow and liquidity needed for operations. Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuations are provided by the following tables that show the distribution ofthe District's investments by maturity as of June 30,2010 and 2009. June 30,2010 Investment Type U.S.Government Sponsored Entities Local Aj!ency Investment Fund (LAIF) Corporate Medium-Term Notes San Diej!o County Pool Total June 30,2009 Remaining Maturity (in Months) 12 Months 13 to 24 25 to 60 More Than Or Less Months Months 60 Months $53.911,225 $$21,801,325 $32,109,900 $ 34,561,668 34,561,668 4,062,740 4,062,740 18,851.000 18.851.000 $111,386,633 $57,475,408 $21,801,325 $32,109,900 $ Remaining Maturity (in Months) 12 Months 13 to 24 25 to 60 More Than Investment Type Or Less Months Months 60 Months U.S.Government Sponsored Entities $22,048,400 $$22,048,400 $$ Local Agency Investment Fund (LAIF)7,489,943 7,489,943 Corporate Medium-Term Notes 4,120,680 4,120,680 San Diego County Pool 39,390,000 39,390,000 Total $73,049,023 $46,879,943 $26,169,080 $$ See independent auditors'report.16 ~~.;:~,NOTES To FINANCIAL STATEMENTS '~i#'YEARS ENDED JUNE 30,2010 AND 2009 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 ofthe investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.Presented below is the minimum rating required by (where applicable)the California Government Code or the District's Investment Policy,or debt agreements,and the actual rating as ofJune 30,2010 and 2009 for each investment type. June 30,2010 Investment Type U.S.Government Sponsored Entities Local Agency Investment Fund (LAIF) Corporate Medium-Term Notes San Diego County Pool Total June 30,2009 $53.911,225 34,561,668 4,062,740 18,851.000 $111,386,633 Minimum Legal Rating N/A N/A A N/A Rating as ofYear End Not AAA AA Rated $53,911,225 $$ 34,561,668 4,062,740 18,851.000 $53,911,225 $4,062,740 $53,412,668 Minimum Rating as ofYear End Legal Not Investment Type Rating AAA AA Rated U.S.Government Sponsored Entities $22,048,400 N/A $22,048,400 $$ Local Agency Investment Fund (LAIF)7,489,943 N/A 7,489,943 Corporate Medium-Term Notes 4,120,680 A 2,061,960 2,058,720 San Diego County Pool 39,390,000 N/A 39,390,000 Total $73,049,023 $24,110,360 $2,058,720 $46,879,943 See independent auditors'report.17 i~;:~'NOTES To FINANCIAL STATEMENTS'~~,#/YEARS ENDED JUNE 30,2010 AND 2009 2)CASH AND INVESTMENTS -Continued Concentration ofCredit Risk The investment policy ofthe 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 California 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 oftotal District investments as ofJune 30,2010 and 2009 are as follows: June 30,2010 Issuer Federal Home Loan Bank Federal Home Loan Mortgage Corp Federal National MOIigage Association June 30,2009 Issuer Federal Home Loan Bank Federal Home Loan Mortgage Corp Federal National Mortgage 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 20,044,400 11,791,825 22,075,000 Reported Amount 5,996,260 4,022,100 10,033,780 Custodial credit risk for deposits is the risk that,in the event ofthe failure ofa 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 ofan outside party.The custodial credit risk for investments is the risk that,in the event ofthe failure of the counterparty (e.g.,broker- dealer)to a transaction,a government will not be able to recover the value ofits investment or collateral securities that are in the possession of another party.The California Government Code and the Entity's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments,other than the following provision for deposits:The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).The market value ofthe pledged securities in the collateral pool must equal at least 110%of the total amount deposited by the public agencies.California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150%ofthe secured public deposits. As ofJune 30,2010,$819,689 ofthe Oistrict's deposits with financial institutions in excess offederal depository insurance limits were held in collateralized accounts.As of June 30,2009,$2,454,830 of the District's deposits with financial institutions in excess offederal depository insurance limits were held in collateralized accounts. See independent auditors'report.18 E~A;'"NOTES To FINANCIAL STATEMENTS'~.J YEARS ENDED JUNE 30,2010 AND 2009 2)CASH AND INVESTMENTS -Continued Local Agency Investment Fund (LAIF) The District is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.The fair value of the District's investment In this pool is reported in the accompanying financial statements at amounts based upon District's pro- rata share ofthe fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF,which are recorded on an amortized cost-basis. San Diego County Pooled Fund The San Diego County Pooled Investment Fund (SDCPIF)is a pooled investment fund program governed by the County of San Diego Board ofSupervisors,and administered by the County of San Diego Treasurer and Tax Collector.Investments in SDCPIF are highly liquid as deposits and withdrawals can be made at anytime without penalty. The County of San Diego's bank deposits are either Federally insured or collateralized in accordance with the California Government Code.Pool detail is included in the County of San Diego Comprehensive Annual Financial Report (CAFR). Copies of the CAFR may be obtained from the County of San Diego Auditor-Controller's Office -1600 Pacific Coast Highway-San Diego,CA 92101. Collateral for Deposits All cash and Certificates ofDeposit are entirely insured or collateralized. Under the provisions ofthe California Government Code,California banks and savings and loan associations are required to secure the District's deposits by pledging government securities as collateral.The market value ofthe pledged securities must equal at least 110%ofthe District's deposits.California law also allows financial institutions to secure District deposits by pledging first trust deed mortgage notes having a value of 150%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.19 /f},:;::'::~\NOTES To FINANCIAL STATEMENTS~;;#'YEARS ENDED JUNE 30,2010 AND 2009 3)CAPITAL ASSETS The fol1owing is a summary ofchanges in Capital Assets for the year ended June 30,2010: Beginning Balance Additions Deletions Ending Balance Capital Assets,Not Depreciated Land $13,402,840 $280,065 $(61,942)$13,620,963 Construction in Progress 18,280,278 28,300,354 (9,498,783)37,081,849 Total Capital Assets Not Depreciated 31,683,118 28,580,419 (9,560,725)50,702,812 Capital Assets,Being Depreciated Infrastructure 537,188,394 8,508,856 (1,163,265)544,533,985 Field Equipment 9,473,571 422,577 (366,590)9,529,558 Buildings 18,165,527 299,465 (13,860)18,451,132 Transportation Equipment 3,284,639 325,228 (331,175)3,278,692 Communication Equipment 787,358 548,462 1,335,820 Office Equipment 17,403,147 1,362,848 (335,607)18,430,388 Total Capital Assets Being Depreciated 586,302,636 11,467,436 (2,210,497)595,559,575 Less Accumulated Depreciation: Infrastructure 135,582,472 11,462,706 (939,178)146,106,000 Field Equipment 8,963,959 93,704 (372,084)8,685,579 Buildings 6,090,921 446,906 (62,686)6,475,141 Transportation Equipment 2,655,866 149,802 (327,814)2,477,854 Communication Equipment 410,205 58,343 468,548 Office 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 Being Depreciated,Net 422,369,157 (1,830,061 )(175,263)420,363,833 Total Capital Assets,Net $454,052,275 $26,750,358 $(9,735,988)$471,066,645 Depreciation expense for the years ended June 30,2010 and 2009 was $13,297,497 and $12,475,714,respectively. See independent auditors'report.20 G~~NOTES To FINANCIAL STATEMENTS \'%~.i5#'YEARS ENDED JUNE 30,2010 AND 2009 3)CAPITAL ASSETS (Continued) The following is a summary ofchanges in Capital Assets for the year ended June 30,2009: Beginning Balance Additions Deletions Ending Balance Capital Assets,Not Depreciated: Land $13,025,364 $377,476 $$13,402,840 Construction in Progress 42,338,220 19,496,000 (43,553,942)18,280,278 Total Capital Assets Not Depreciated 55,363,584 19,873,476 (43,553,942)31,683,118 Capital Assets,Being Depreciated: Infrastructure 495,249,373 42,051,766 (112,745)537,188,394 Field Equipment 9,430,276 43,295 9,473,571 Buildings 17,636,124 529,403 18,165,527 Transportation Equipment 3,102,661 194,636 (12,658)3,284,639 Communication Equipment 689,954 97,404 787,358 Office Equipment 16,825,593 577,554 17,403,147 Total Capital Assets Being Depreciated 542,933,981 43,494,058 (125,403)586,302,636 Less Accumulated Depreciation: Infrastructure 125,132,713 10,562,504 (1\2,745)135,582,472 Field Equipment 8,714,039 249,920 8,963,959 Buildings 5,637,685 453,236 6,090,921 Transportation Equipment 2,559,141 109,383 (12,658)2,655,866 COimnunication Equipment 369,564 40,641 410,205 Office Equipment 9,170,026 1,060,030 10,230,056 Total Accumulated Depreciation 151,583,168 12,475,714 (125,403)163,933,479 Total Capital Assets Being Depreciated,Net 391,350,813 31,018,344 422,369,157 Total Capital Assets,Net $446,714,397 $50,891,820 $(43,553,942)$454,052,275 4)OTHER NONCURRENT ASSETS Deferred bond issue costs totaled $1,703,282 and $1,142,762,net ofaccumulated amortization of$295,204 and $296,308 as of June 30,2010 and 2009,respectively.The costs are amortized on the straight-line method based on the estimated term of the related bond debt.Amortization expense of$66,704 and $56,030 for the years ended June 30,2010 and 2009 is included in miscellaneous non-operating expenses. See independent auditors'report.21 ;t:--:q,\NOTES To FINANCIAL STATEMENTS.~~YEARS ENDED JUNE 30,2010 AND 2009 5)LONG-TERM DEBT Long-term liabilities for the year ended June 30,2010 are as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year General Obligation Bonds: Improvement District No.27 -1998 $8,395,000 $$8,395,000 $$ Unamortized Bond Discount (96,159)(96,159) Deferred Amount on Refunding (572,266)(572,266) Improvement District No.27 -2009 7,780,000 7,780,000 520,000 Unamortized Bond Premium 209,884 10,903 198,981 Deferred Amount on Refunding (728,990)(33,136)(695,854) Net General Obligation Bonds 7,726,575 7,260,894 7,704,342 7,283,127 520,000 Certificates ofParticipation: 1996 Certificates of Participation 12,100,000 400,000 11,700,000 400,000 2004 Certificates of Participation lO,320,000 530,000 9,790,000 545,000 2007 Certificates of Participation 41,215,000 815,000 40,400,000 850,000 1996 COPS Unamortized Discount (13,413)(745)(12,668) 2007 COPS Unamortized Discount (250,219)(9,044)(241,175) 2004 COPS Unamortized Premium 16,500 1,165 15,335 2004 COPS Deferred Amount on Refunding (174,175)(12,295)(161,880) Net Certificates of Participation 63,213,693 1,724,081 61,489,612 1,795,000 Revenue Bonds: 2010 Water Revenue Bonds Series A 13,840,000 13,840,000 2010 Water Revenue Bonds Series B 36,355,000 36,355,000 2010 Series A Unamortized Premium 1,078,824 18,600 1,060,224 Net Revenue Bonds 51,273,824 18,600 51,255,224 Notes Payable: State Water Resource Control Board 701,516 341,772 359,744 353,734 Total Long-Term Liabilities $71,641,784 $58,534,718 $9,788,795 $120,387,707 $2,668,734 See independent auditors'report.22 f;:~:NOTES To FINANCIAL STATEMENTS '~.&i YEARS ENDED JUNE 30,2010 AND 2009 5)LONG-TERM DEBT -Continued General Obligation Bonds In June 1998,the District issued $11,835,000 ofGeneral Obligation Refunding Bonds.The proceeds ofthis issue,together with other lawfully available monies,were to be used to establish an irrevocable escrow to advance refund and defease in their entirety the District's previous outstanding General Obligation Bond issue.In November 2009,The District issued $7,780,000 of General Obligation Refunding Bonds to refund the 1998 issue.The proceeds from the bond issue were $7,989,884,which included an original issue premium of $209,884.An amount of $7,824,647,which consisted of unpaid principal and acclUed interest,was deposited into an escrow fund.Pursuant to an optional redemption clause in the 1998 bonds,the Disttict 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 flow required to service the old debt and the cash flow required to service the new debt is $1,099,110 and represents an economic gain on refunding of$640,925. These bonds are general obligations of Improvement District No.27 (10 27)ofthe 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 10 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 defelTed amount of$728,989 which is being amortized over the remaining life of the refunded debt.Amortization for the year ended June 30,2010 was $33,136 and is included in miscellaneous non- operating expenses.As ofJune 30,2010,the unamortized deferred amount ofrefunding is $695,853. The2009 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 2011 $520,000 $267,012 $787,012 2012 505,000 251,637 756,637 2013 520,000 236,262 756,262 2014 535,000 220,437 755,437 2015 550,000 204,162 754,162 2016-2020 3,045,000 724,468 3,769,468 2021-2023 2,105,000 127,903 2,232,903 $7,780,000 $2,031,881 $9,811,881 See independent auditors'report.23 ~~~NOTES To FINANCIAL STATEMENTS.~£~~YEARS ENDED JUNE 30,2010 AND 2009 5)LONG-TERM DEBT -Continued Certificates ofParticipation (COPS) In June 1996,COPS with face value of$15,400,000 were sold by the Otay 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 ofprincipal and interest associated with the COPS.The installment payments are to be paid from taxes and "net revenues,"as described in the installment agreement. The certificates bear interest at a variable weekly rate not to exceed 12%.The variable interest rate is tied to the 30-day LIBOR index and the Securities Industry and Financial Markets Association (SIFMA)index.The interest rate at June 30, 2010 was 0.25%.The installment payments are to be paid annually at $350,000 to $900,000 from September 1,1996 through September 1,2026. In July 2004,Refunding Certificates ofParticipation (COPS)with a face value of$12,270,000 were sold by the Otay Service Corporation to advance refund $11,680,000 of outstanding 1993 COPS.An installment agreement between the District,as Buyer,and the Corporation,as Seller,was executed for the scheduled payment of principal and interest associated with the COPS.The installment payments are to be paid from taxes and "net revenues,"as described in the installment agreement. The certificates are due in annual installments of $445,000 to $895,000 from September 1,2005 through September 1,2023; bearing interest at 3%to 4.625%. In March 2007,Revenue Celiificates ofparticipation (COPS)with face value of$42,000,000 were sold by the Otay Service Corporation to improve the District's water storage system and distribution facilities.An installment purchase agreement between the District,as a Buyer,and the Corporation,as Seller,was executed for the scheduled payment of principal and interest associated with the COPS.The installment payments are to be paid from taxes and "net revenues,"as described in the installment agreement.The certificates are due in annual installments of $785,000 to $2,445,000 from September 1,2007 through September 1,2036;bearing interest at 3.7%to 4.47%. There is no aggregate reserve requirement for the COPS.Future debt service requirements for the certificates are as follows: For the Year 1996 COPS 2004 COPS 2007 COPS Ended June 30,Principal Interest*Principal Interest Principal Interest 2011 $400,000 $28,417 $545,000 $386,236 $850,000 $1,655,395 2012 400,000 27,417 565,000 368,607 885,000 1,622,864 2013 500,000 26,208 580,000 349,566 920,000 1,589,020 2014 500,000 24,958 600,000 328,906 955,000 1,553,864 2015 500,000 23,708 625,000 306,388 995,000 1,517,301 2016-2020 3,200,000 95,583 3,505,000 1,133,050 5,580,000 6,979,134 2021-2025 4,100,000 49,708 3,370,000 314,597 6,785,000 5,762,360 2026-2030 2,100,000 3,626 8,335,000 4,192,867 2031-2035 12,650,000 2,208,438 2036-2038 2,445,000 211,640 $11,700,000 $279,625 $9,790,000 $3,187,350 $40,400,000 $27,292,883 *Variable Rate-Interest retlected at June 30,2010 at a rateof0.25%. The three COP debt issues contain various covenants and restrictions,principally that the District fix,prescribe,revise and collect rates,fees and charges for the Water System which will be at least sufficient to yield,during each fiscal year,taxes and net revenues equal to one hundred twenty-five percent (125%)of the debt service for such fiscal year.The District was in compliance with these rate covenants for the fiscal year ended June 30,2010. See independent auditors'report.24 E~;"AV"~~NOTES To FINANCIAL STATEMENTS~~#.YEARS ENDED JUNE 30,2010 AND 2009 5)LONG-TERM DEBT -Continued Water Revenue Bonds In April 2010,Water Revenue Bonds with a face value of $50,195,000 were sold by the Otay Water District Financing Authority to provide funds for the construction ofwater storage and transmission facilities.The bond issue consisted oftwo series;Water Revenue Bonds,Series 20lOA (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 20lOB (Taxable Build America Bonds)with a face value of $36,255,000.The Series 2010A bonds are due in annual installments of $785,000 to $1,295,000 from September 1,2011 through September 1,2025;bearing interest at 2%to 5.25%.The Series 20lOB bonds are due in annual installments of $1,365,000 to $3,505,000 from September 1,2026 through September 1,2040;bearing interest at 6.377%to 6.577%.Interest on both Series is payable on September 1,2010 and semiannually thereafter on March 1st and September 15t ofeach year until maturity or earlier redemption.The installment payments are to be made from Taxes and Net Revenues ofthe Water System as desclibed in the installment purchase agreement,on parity with the payments required to be made by the District for the 1996,2004 and 2007 Cel1ificates ofParticipation desclibed above. The proceeds of the bonds will be used to fund the project described above as well as to fund reserve funds of $1,030,688 (Series 201OA)and $2,707,418 (Series 2010B).$542,666 was used to fund various costs ofissuance. The original issue premium is being amortized over the 14 year life ofthe Series 20lOA bonds.At June 30,2010 $18,600 has been amortized and is included in interest expense.The unamortized premium at June 30,2010 is $1,060,224. The 2010 Water Revenue Bonds contains various covenants and restrictions,principally that the District fix,prescribe, revise and collect rates,fees and charges for the Water System which will beat least sufficient to yield,during each fiscal year,taxes and net revenues equal to one hundred twenty-five percent (125%)ofthe debt service for such fiscal year.The District was in compliance with these rate covenants for the fiscal year ended June 30,2010. The total amount outstanding at June 30,2010 and aggregate maturities ofthe revenue bonds for the fiscal years subsequent to June 30,2010,are as follows: For the Year 2010 Water Revenue Bond Series A 2010 Water Revenue Bond Series B Ended June 30,Principal Interest Principal Interest 2011 $$498,928 $$2,049,031 2012 785,000 569,688 2,371,868 2013 800,000 553,838 2,371,868 2014 820,000 533,538 2,371,868 2015 845,000 508,563 2,371,868 2016-2020 4,700,000 2,018,963 11,859,342 2021-2025 5,890,000 779,567 11,859,342 2026-2030 7,745,000 10,685,177 2031-2035 10,570,000 7,756,703 2036-2040 14,535,000 3,664,21 I 2041 3,505,000 115,262 $13,840,000 $5,463,085 $36,355,000 $57,476,540 See independent auditors'report.25 i"U.:.ln:r.~~....(iTA;';)'NOTES To FINANCIAL STATEMENTS'~~;J'YEARS ENDED JUNE 30,2010 AND 2009 5)LONG-TERM DEBT -Continued Note Payable In December 1990,the District entered into a 3.5%note payable to the State Water Resources Control Board.This note is unsecured and payable In annual installments of$366,325 including principal and interest from 1992 through 2012.The total amount outstanding at June 30,2010 and aggregate maturities ofthe note for the fiscal years subsequent to June 30,2010,are as follows: For the Year Ended June 30,Principal Interest 2011 $353,734 $12,591 2012 6,010 1 $359,744 $12,592 6)NET ASSETS Designated Net Assets In addition to the restricted net assets,a portion ofthe unrestricted net assets have been designated by the Board of Directors for the following purposes as ofJune 30,2010 and 2009: 2010 2009 Designated Betterment $6,653,909 $2,969,722 Expansion Reserve 21,096,749 18,569,610 Replacement Reserve 24,483,877 26,388,812 Insurance Reserve 6,639,953 8,436,721 Total $58,874,488 $56,364,865 7)DEFINED BENEFIT PENSION PLAN Plan Description The District's defined plan,(the "Plan"),provides retirement and disability benefits,annual cost-of-living adjustments,and death benefits to plan members and beneficiaries.The Plan is part of the Public Agency portion of the California Public Employees'Retirement System (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 California.A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees'Retirement Law. The Plan selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through District resolution.CalPERS issues a separate Comprehensive Annual Financial Report.Copies ofthe CaIPERS' annual financial report may be obtained from the CalPERS Executive Office,400 P Street,Sacramento,California 95814. See independent auditors'report.26 ~~,NOTES To FINANCIAL STATEMENTS ~#YEARS ENDED JUNE 30,2010 AND 2009 7)DEFINED BENEFIT PENSION PLAN -Continued Funding Policy Active members in the Plan are required to contribute 8%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 are those adopted by the CalPERS Board of Administration.The required employer contribution rate for the fiscal year ended June 30,2010 was 19.815%.The contribution requirements ofthe 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 fiscal year ended June 30,2010,the District's annual pension cost and actual contribution was $2,240,538.The required contJibution for the fiscal year ended June 30,2010 was determined as part ofthe June 30,2007 actuarial valuation. Thefollowing is a summary ofthe actuarial assumptions and methods: Valuation Date Actuarial Cost Method Amortization Method Average Remaining Period Asset Valuation Method Actuarial Assumptions: Investment Rate ofReturn Projected Salary Increase Inflation Payroll Growth Individual Salary Growth June 30,2007 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 amortized 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 ofthe plan are amortized over a rolling period,which results in an amortization of6%of unamoliized gains and losses each year.If the plan's accrued liability exceeds the actuarial value ofthe plan assets,then the amortization payment ofthe total unfunded liability may be lower than the payment calculated over a 30-year amortization period. THREE-YEAR TREND INFORMATION FORPERS Fiscal Year Annual Pension CostfAPC) Percentage of APC Contributed Net Pension Obligation 6/30/10 6/30/09 6/30/08 Funded Status and FundingProgress $ $ $ 2,240,538 2,150,579 2,252,601 100% 100% 100% $ $ $ ooo As ofJune 30,2008,the most recent actuarial valuation date,the plan was 75.8%funded.The actuarial accrued liability (AAL) for benefits was $65,542,736,and the actuarial value of assets was $49,712,016,resulting in an unfunded actuarial accrued liability (UAAL)of$15,830,720.The covered payroll (annual payroll ofactive employees covered by the plan)was $11,174,528, and the ratio ofthe UAAL to the covered payroll was 141.7%. The schedule of funding progress,presented as required supplementary information following the notes to the financial statements,presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over the time relative to the actuarial accrued liability for benefits. See independent auditors'report.27 l;:~~NOTES To FINANCIAL STATEMENTS \~..#'YEARS ENDED JUNE 30,2010 AND 2009 8)OTHER POST EMPLOYMENT BENEFITS Plan Description The District's defined benefit postemployment healthcare plan,(DPHP),provides medical benefits to eligible retired District employees and beneficiaries.DPHP is part ofthe Public Agency p011ion ofthe 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 participating public employers within the State of California.A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees'Retirement Law.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 report 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 Board 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 $0 to $95 per month for coverage to age 65,and from $0 to $62 per month,respectively,thereafter. Annual OPEB Cost and Net OPEB Obligation/Asset The District's annual OPES cost (expense)is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB Statement 45.The ARC represents a level of funding that,if paid on an ongoing basis is projected to cover the normal annual cost.Any unfunded actuarial liability (or funding excess)is amortized over a period not to exceed thil1y years.The current ARC rate is 2.9%of the annual covered payroll. The following table shows the components of the District's annual OPEB cost for the year,the amount actually contributed to the plan,and changes in the District's net OPEB obligation/asset: 2010 2009 345,000 $873,000 (480,878)(437,798) 591,000 489,999 455,122 925,201 1,033,631 1,481,069 (578,509)(555,868) (6,204,876)(5,649,008) (6,783,385)$(6,204,876) Annual Required Contribution (ARC)$ Interest on net OPEB asset Adjustment to Annual Required Contribution (ARC) Annual OPES cost Contributions made Increase in net OPEB asset Net OPEB asset -beginning ofyear Net OPEB asset -end ofyear $============= For 2010,in addition to the ARC,the District contributed an implied subsidy (healthcare premium payments for retirees to Special District Risk Management Authority (SDRMA»in the amount of$597,631,which is included in the $1,033,631 of contributions shown above.For 2009 this amount was $608,069,which is included in the $1,481,069 ofcontributions shown above. See independent auditors'report.28 ~;[i:i-r.-~ ,TA~i,NOTES To FINANCIAL STATEMENTS '",,,;;:j#!YEARS ENDED JUNE 30,2010 AND 2009 8)OTHER POST EMPLOYMENT BENEFITS -Continued The District's annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the net OPEB obligation/asset for the fiscal years 2010,2009 and 2008 were as follows: THREE-YEAR TREND INFORMATION FOR CERBT Fiscal AnnualOPEB Percentage of Net OPEB Year Cost (AOe)OPEB Cost Contributed Asset 6/3012010 $455,122 100%$(6,783,385) 6/30/2009 $925,201 100%$(6,204,876) 6/30/2008 $846,000 100%$(5,649,008) Funded Status and Funding Progress The funded status ofthe plan as ofJune 30,2009,the most recent actuarial valuation date,was as follows: Actuarial Accrued Liability (AAL) Actuarial Value ofPlan Assets Unfunded Actuarial Accrued Liability (UAAL) Funded Ratio (Actuarial Value ofPlan Assets/AAL) Covered Payroll (Active Plan Members) UAAL as a Percentage ofCovered Payroll $10,070,000 $6,273,000 $3,797,000 62.29% $11,878,000 31.97% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability ofoccurrence of events far into the future.Examples include assumptions about future employment,mortality, and the healthcare cost trend.Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future.The schedule of funding progress,presented as required supplementary information following the notes to the financial statements,presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. See independent auditors'report.29 t:-:J'NOTES To FINANCIAL STATEMENTS ~~.YEARS ENDED JUNE 30,2010 AND 2009 8)OTHER POST EMPLOYMENT BENEFITS -Continued Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members)and include the types ofbenefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point.The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets,consistent with the long-term perspective ofthe 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 Assumptions: Investment Rate ofReturn Projected Salary Increase Inflation Individual Salary Growth 9)WATERCONSERVATION AUTHORITY June 30,2009 Entry Age Normal Cost Method Level Percent ofPayroll 28 Years as ofthe Valuation Date 15 Year Smoothed Market 7.75%(Net of Administrative Expenses) 3.25% 3.00% CalPERS 1997-2002 Experience Study In 1999 the District formed the Water Conservation Authority (the "Authority"),a Joint Powers Authority,with other local entities to construct,maintain and operate a xeriscape demonstration garden in the fUl1herance of water conservation.The authority is a non-profit public charity organization and is exempt from income taxes.During the years ended June 30,2010 and 2009,the District contributed $100,240 and $95,270,respectively,for the development,construction and operation costs of the xeriscape demonstration garden. A summary ofthe Authority's June 30,2009 audited financial statement is as follows (latest report available): Assets Liabilities Revenues,Gains and Other Support Changes in Net Assets See independent auditors'report. $2,388,402 52,488 719,224 (100,318) 30 .i~~NOTES To FINANCIAL STATEMENTS ~#!YEARS ENDED JUNE 30,2010 AND 2009 10)COMMITMENTS AND CONTINGENCIES Construction Commitments The District had committed to capital projects under construction with an estimated cost to complete of$I,049,789 at June 30, 2010. Litigation Certain claims,suits and complaints arising in the ordinary course of operation have been filed or are pending against the District.In the opinion ofthe staffand counsel,all such matters are adequately covered by insurance,or ifnot so covered,are without merit or are ofsuch 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 necessary to build additional storage capacity.The agreement further allows the developers to relinquish all or a portion ofsuch water storage capacity.If the District grants to another property owner the relinquished storage capacity,the District shall refund to the applicable developer $746 per equivalent dwelling unit (EDU). There were 17,867 EDUs that were subject to this agreement.At June 30,2009,1,750 EDUs had been relinquished and refunded,14,662 EDUs had been connected,and 1,455 EDUs have neither been relinquished nor connected.At June 30, 2010,1,751 EDUs had been relinquished and refunded,14,663 EDUs had been connected,and 1,453 EDUs have neither been relinquished nor connected. Developer Agreements The District has entered into various Developer Agreements with developers towards the expansion ofDistrict facilities.The developers agree to make certain improvements and after the completion ofthe 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 30,2010,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. 11)RISK MANAGEMENT General Liability The District is exposed to various risks of loss related to torts,theft,damage and destruction of assets,errors and omissions,and natural disasters.Beginning in July 2003,the District began participation in an insurance pool through the Special District Risk Management Authority (SDRMA).SDRMA is a not-for-profit public agency formed under California Government Code Sections 6500 et.Seq.SDRMA is governed by a board composed of members from participating agencies.The mission of SDRMA is to provide renewable,efficiently priced risk financing and risk management services through a financially sound pool.The District pays an annual premium for commercial insurance covering general liability,excess liability,property,automobile,public employee dishonesty,and various other claims. Coverage limits range up to $1 billion.Accordingly,the District retains no risk ofloss.Separate financial statements of SDRMA may be obtained at Special District Risk Management Authority,1112 "I"Street,Suite 300,Sacramento,CA 95814. Workers'Compensation Through SDRMA,the District is insured up to $200,000,000 for Statutory Workers'Compensation and $5,000,000 for Employers'Liability coverage with no deductible.SDRMA currently has a pool of 348 agencies in the Workers' Compensation Program. See independent auditors'report.31 /~~)"t>TA~'NOTES To FINANCIAL STATEMENTS \~-:~/YEARS ENDED JUNE 30,2010 AND 2009 11)RISK MANAGEMENT -Continued Health Insurance Beginning in January 2008,the District began providing health insurance through SDRMA covering all ofits employees, retirees,and other dependents.SDRMA is a self-funded,pooled medical program,administered in conjunction with the California State Association ofCounties (CSAC). Adequacy ofProtection During the past three fiscal (claims)years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage.There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 12)INTEREST EXPENSE Interest expense for the years ended June 30,2010 and 2009,is as follows: 2010 2009 Amount Expensed $2,404,530 $1,340,110 Amount Capitalized as a Cost of Construction Projects 510.115 \,353.153 Total Interest $2,914,645 $2,693.263 See independent auditors'report.32 ~~~~":NOTES To FINANCIAL STATEMENTS,;~~YEARS ENDED JUNE 30,2010 AND 2009 13)SEGMENT INFORMATION 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 ofthe water services for repayment. Summary financial information for the water services is presented for June 30,2010. Condensed Statement of Net Assets June 30,2010 Water Services ASSETS Current Assets $126,774,856 Capital Assets 455,162,484 Other Assets 8,486,667 Total Assets 590,424,007 LIABILITIES Cun·ent Liabilities 23,980,259 Long-Term Liabilities 118,389,772 Total Liabilities 142,370,031 NET ASSETS Invested in capital assets,net ofrelated debt 362,311,370 Restricted for debt service 5,192,111 Unrestricted 80,550,495 Total Net Assets $448,053,976 See independent auditors'repOli.33 ~;:~~.NOTES To FINANCIAL STATEMENTS~~~'YEARS ENDED JUNE 30,2010 AND 2009 13)SEGMENT INFORMATION -Continued Condensed Statement ofRevenues,Expenses and Changes in Net Assets For The Year Ended June 30,2010 Water Services Operating Revenues Water sales $56,210,109 Connection and other fees 1,907,797 Total Operating Revenues 58,117,906 Operating Expenses Cost ofWater Sales 39,338,495 Administrative and General 17,750,713 Depreciation 12,495,217 Total Operating Expenses 69,584,425 Operating Income (Loss)(11,466,519) Nonoperating Revenues (Expenses) Investment income 1,323,844 Taxes and assessments 3,613,901 Availability charges 618,806 Gain (loss)on sale ofcapital assets (143,086) Miscellaneous revenues 2,921,016 Donations (100,240) Interest expense (2,386,955) Miscellaneous expenses (303,963) Total Nonoperating Revenues (Expenses)5,543,323 Income (Loss)Before Capital Contributions (5,923,196) Capital Contributions 8,948,920 Changes in Net Assets 3,025,724 Total Net Assets,Beginning 445,028,252 Total Net Assets,Ending $448,053,976 See independent auditors'report.34 ~:~.NOTES To FINANCIAL STATEMENTS '~~~i&"YEARS ENDED JUNE 30,2010 AND 2009 13)SEGMENT INFORMATION -Continued Condensed Statement of Cash Flows For The Year Ended June 30,2010 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 Increse in Cash and Cash Equivalents Cash and cash equivalents,Beginning Cash and cash equivalents,Ending See independent auditors'report. $ $ 4,856,836 4,747,692 25,787,143 (26,663,096) 8,728,575 52,583,868 61,312,443 35 REQUIRED SUPPLEMENTARY INFORMATION YEARS ENDED JUNE 30,2010 AND 2009 I.t~=~~REQUIRED SUPPLEMENTARY INFORMATION ~~#}YEARS ENDED JUNE 30,2010 AND 2009 Schedule ofFunding Progress for PERS Actuarial Accrued UAALasa Actuarial Actuarial Liability Unfunded Percentage of Valuation Value of (AAL)Entry AAL Funded Covered Covered Date Assets Age (VAAL)Ratio Payroll Payroll (A)(B)(B A)(AlB)(C)[(B-A)/C] 6/30/08 Miscellaneous $49,712,016 $65,542,736 $15,830,720 75.8%$I1J74,528 141.7% 6/30/07 Miscellaneous $44,910.326 $59.412,116 $14,501.790 75.6%$10,663.440 136.0% 6/30/06 Miscellaneous $40,321.483 $54.228,041 $13,906,558 74.4%$10.470,766 132.8% Schedule ofFunding Progress for DPHP Actuarial Accrued UAALasa Actuarial Actuarial Liability Unfunded Percentage of Valuation Value of (AAL)Entry AAL Funded Covered Covered Date Assets Age (VAAL)Ratio Payroll Payroll (A)(B)(B -A)(AlB)(C)[(B-A)/C] 6/30/09 Miscellaneous $6,273,000 $10,070,000 $3,797,000 62.29%$11.878,000 31.97% 6/30/08 Miscellaneous $5,649,000 $11,581,000 $5,932,000 48.78%$11.307,000 52.5% 6/30/07 Miscellaneous $o $11.408,000 $11.408,000 0%$10,951.000 104.20% See independent auditors'report.36 ~DIEHL,EVANS &COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIP INCLUDINGACCOUNTANCYCORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA92008·2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com October 12,2010 Board ofDirectors Otay Water District Spring Valley,California Attachment C 'PHlLI.PH.HOLTKAMP,CPA 'THOMAS M.PERLOWSKI,CPA 'HARVEY1.SCHROEDER,CPA KENNETHR.AMES,CPA WlLLIAMC.PENTZ,CPA MICllAELR.LOOIN.CPA CRAlGW.SPRAKER,CPA NITINP.PATEL,CPA ROBERT 1.CALLANAN,CPA , APROFESSiONAL CORPORATION In piarming and performing our audit of the financial statements of the Otay Water District (the District)as of and for the year ended June 30,2010,in accordance with auditing standards generally accepted in the United States of America,we considered the District's internal control over fmancial reporting (internal control)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 ofthe District's internal control.Accordingly,we do not express an opinion on the effectiveness ofthe District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the nonnal course ofperforming their assigned functions,to prevent,or detect and correct misstatements on a timely basis.A material weakness is a deficiency,or combination ofdeficiencies in internal control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented,or detected and corrected on a timely basis. Our consideration ofinternal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and,therefore,there can be no assurance that all such deficiencies have been identified.We did not identify any deficiencies in internal control that we consider to be material weaknesses,as defined above. This communication is intended solely for the information and use of management,the Board of Directors,and others within the District and is not intended to be and should not be used by anyone other than these specified parties. OTHEROFFICES AT:613 W.VALLEY PARKWAY.SUITE 330 ESCONDIDO,CALIFORNIA92025-2598 (760)741.3141'FAX (760)741.9890 5CORPORATEPARKSUITE 100 IRVINE,CALIFORNIA 92606-4906 (949)-399-0600.FAX(949)399·0610 Attachment 0 ~DIEHL,EVANS &:COMPANY,LLP!:!....j CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIP INCLUDING ACCOUNTANCYCORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008-2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com The Board ofDirectors and Management ofthe Otay Water District Spring Valley,California October 12,2010 "PHILIPH.HOLTKAMP,CPA "mOMAS M.PERLOWSKI,CPA "fLo\RVEYJ.SCHROEDER,CPA KENNETH R AMES,CPA WILL~MC.PENTZ,CPA MICHAEL R.LUDIN,CPA CRAIOW.SPRAKER,CPA NITlNP.PATEL,CPA ROBERTJ.CALLANAN,CPA "APROFESSrONALCORPORATION In planning and performing our audit ofthe financial statements of the Otay Water District (District)as of and for the year ended June 30,2010,in accordance with auditing standards generally accepted in the United States of America,we considered the District's internal control over financial reporting (internal control)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 District's internal control.Accordingly,we do not express an opinion on the effectiveness ofthe District's internal control. However,during our audit we became aware of a certain matter that we would like to bring to your attention.This matter is set forth below,together with our recommendation. Interest Capitalization During our audit it was noted that the capitalization of interest on certain construction projects relating to the 2010 Water Revenue Bonds was understated by $436,369.The District's interest capitalization calculation for the 2010 Water Revenue Bonds was based on an interest capitalization accounting principle (FASB 34)that was being properly applied to other District debt.The accounting principle that applies to the 2010 Water Revenue Bonds (FASB 62)requires a different calculation of the amount of interest to be capitalized.We recommend the District review any new interest capitalization with the District's auditor during the year. This communication is intended solely for the information and use ofmanagement,the Board of Directors,and others within the District and is not intended to be,and should not be,used by anyone other than these specified parties. OTHER OFFICES AT:613 W.VALLEY PARKWAY,SUITE 330 ESCONDIDO,CALIFORNIA 92025-2598 (760)741-3141.FAX (760)741-9890 5CORPORATE PARK SUITE 100 IRVINE,CALIFORNIA 92606-4906 (949)-399-0600.FAX (949)399-0610 Attachment E ~DIEHL,EVANS &:COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSIDPINCLUDINGACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008-2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com Board ofDirectors Audit Committee Otay Water District Spring Valley,California October 12,2010 "PHILIPH.HOLTKAMP,CPA "mOMASM.PERLOWSKl,CPA "HARVEY J.SCHROEDER,CPA KENNEmR.AMES,CPA Wll.l.lAMC.PENTZ,CPA MICHAELR.LOOIN,CPA CRAIGW.SPRAKER,CPA NITINP.PATEL,CPA ROBERT 1.CALLANAN,CPA " APROFESSIONALCORPORATION We have audited the financial statements of the Otay Water District for the year ended June 30,2010, and have issued our report thereon dated October 12,2010.Professional standards require that we provide you with the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America: As stated in our engagement letter dated February 5,2010,our responsibility,as described by professional standards,is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented,in all material respects,in conformity with accounting principles generally accepted in the United States of America.Our audit of the financial statements does not relieve you or management of your responsibilities.Our responsibility is to plan and perform the audit to obtain reasonable,but not absolute,assurance that the financial statements are free of material misstatement.As part of our audit,we considered the internal control of the Otay Water District.Such considerations were solely for the purpose ofdetermining our audit procedures and not to provide any assurance concerning such internal control.As part of our auditing procedures we made inquiries of selected District staff,Management and Board of Directors regarding their understanding ofthe risks of fraud,District controls to reduce fraud risks,and whether they know of any actual fraud or alleged fraud at the District.None of those we inquired of had any knowledge of any fraud at the District.We are responsible for communicating significant matters related to the audit that are,in our professional judgment,relevant to your responsibilities in overseeing the fmancial reporting process.However,we are not required to design procedures specifically to identify such matters. Planned Scope and Timing of the Audit: We performed the audit according to the planned scope and timing previously communicated to you in our meeting about planning matters on August 25,2010. - 1 - OTHER OFFICES AT:613 W.VALLEY PARKWAY.SUITE 330 ESCONDIDO,CALIFORNIA 92025-2598 (760)741-3141.FAX (760)741-9890 5CORPORATE PARK.SUITE 100 IRVINE,CALIFORNIA92606-5165 (949)-399-0600 •FAX(949)399-0610 Significant Audit Findings: Qualitative 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 1 to the financial statements.No new accounting policies were adopted and the application ofexisting policies was not changed during the year ended June 30,2010.We noted no transactions entered into by the Otay Water District during the year for which there is a lack ofauthoritative guidance or consensus.There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events.Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because ofthe possibility that future events affecting them may differ significantly from those expected.The most sensitive estimates affecting the financial statements were: a.Management's estimate ofthe fair market value ofinvestments which is based on market values by outside sources. b.The estimated useful lives for capital assets which are based on industry standards. c.The annual required contribution for the District's Other Post-Employment Benefits was prepared by an outside consultant. We evaluated the key factors and assumptions used to develop these estimates in determining that they were reasonable in relation to the fmancial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Audit Adjustments 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 adjustment detected as a result of audit procedures was corrected by management: a.Capitalized interest on infrastructure capital assets was increased by $436,369 due to the adjustment.We determined the proper amount to be capitalized through calculations of capital assets constructed. -2 - Significant Audit Findings (Continued): Disagreements with Management For the purposes of this letter,professional 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 ofthe auditors'report.We are pleased to report that no such disagreements 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 12,2010. 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 involved application of an accounting principle to the Otay Water District's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements,our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.To our knowledge,there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with management prior to retention as the Otay Water District's auditors. However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. **** This information is intended solely for the use of the Board of Directors,Audit Committee and management of the Otay Water District and is not intended to be and should not be used by anyone other than these specified parties. - 3 - Attachment F ~DIEHL,EVANS &COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS APARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA92008-2389 (760)729-2343.FAX (760)729-2234 www.diehIevans.com INDEPENDENT ACCOUNTANTS'REPORT ON APPLYING AGREED-UPON PROCEDURES October 13,2010 Mr.Joseph Beachem ChiefFinancial Officer Otay Water District Spring Valley,CA -PHILIP H.HOLTKAMP,CPA -THOMAS M.PERLOWSKI,CPA -HARVEYJ.SCHROEOER,CPA KENNETH R.AMES,CPA WILLIAM C.PENTZ,CPA MICHAEL R.LUDIN,CPA CRAIG W.SPRAKER,CPA NITIN P.PATEL,CPA ROBERTJ.CALLANAN,CPA We have performed the procedures enumerated below,which were agreed to by the Otay Water District (the "District")solely to assist the District's senior management in evaluating the investments of the District for the fiscal year ended June 30,2010.The District's management is responsible for the evaluation ofthe investments ofthe 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 ofthose parties specified in the report.Consequently,we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures and findings are as follows: 1.Obtain a copy of the District's investment policy and determine that it is in effect for the time period under review. a.Findings:At June 30,2010,the current investment policy (Policy #27)is dated September 6,2006.This policy was reviewed and approved for the 200912010 Fiscal year as part of the consent calendar at the September 2,2009 Regular Board Meeting. Therefore the investment policy is in effect for the time period under review.. 2.Select 4 investments held at year end and determine if they are allowable investments under the District's Investment Policy. a.Findings:Four investments chosen were FNMA -Maturity 10/5/2012;FHLB -Maturity 9/21/2012;FHLMC -Maturity 6/08/2012 and GE Electric Corporate Bond -Maturity 12/1/2010.All four investments are allowable and within maturity limits as stated in the District's Investment Policy at June 30,2010. OTIffiR OFFICES AT:613 W.VALLEY PARKWAY,SillTE 330 ESCONDIDO.CALIFORNIA 92025-2598 (760)741-3141.FAX (760)741-9890 5 CORPORATEPARK,SillTE 100 IRVINE,CALIFORNIA92606-5165 (949)-399-0600.FAX(949)399-0610 Mr.Joseph Beachem,CFO Otay Water District October 13,2010 Page 2 3.For the four investments selected in #2 above,determine if they are held by a third party custodian designated by the District. a.Findings:Per discussion with District management and evidenced by Union Bank of California monthly statements,the four investments examined are held by a third party custodian designated by the District in compliance with District Policy. 4.Conftrm 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 conftrmed with Union Bank of California at June 30,2010 with no exceptions. 5.Select two investment earnings transactions that took place during the year and recompute the earnings to determine ifthe 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 ofCalifornia Money Market account with no exceptions for the two transactions selected. 7.Select ftve investment transactions (buy,sell,trade or maturity)occurring during the year under review and determine that the transactions are permissible under the District's investment policy. a.Findings:Reviewed ftve investment transactions.All transactions were permissible under the District's Investment Policy. 8.Review the supporting documents for the ftve investments selected at #7 above to determine if the transactions were appropriately recorded in the District's general ledger. a.Findings:Five investments selected at #7 above are appropriately recorded in the District's General Ledger without exception. We were not engaged to,and did not,conduct an audit,the objective ofwhich would be the expression of an opinion on the investments of the District for the ftscal year ending June 30,2010.Accordingly,we do not express such an opinion.Had we performed additional procedures,other matters might have come to our attention that would have been reported to you. This report is limited solely for the information and use ofthe Board and senior management of the Otay Water District and is not intended to be and should not be used by anyone other than those specifted parties. AGENDA ITEM 8b STAFF REPORT November 3,2010 DIV.NO.AllW.O.lG.F.NO: MEETING DATE: Manager B a em,Chief Financial Officer German Al~~j1~~sistant General Manager,Finance andAdministr~ APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBMITTED BY: TYPE MEETING: SUBJECT:Rate Adjustment for Mexico Agreement to Transfer Water GENERAL MANAGER'S RECOMMENDATION: That the Board authorize the General Manager to adjust the wheeling rate for the delivery of Treaty Water to the City of Tijuana to $68.45 per acre-foot for Calendar Year 2011. COMMITTEE ACTION: See Attachment A. BACKGROUND: The District's contract to deliver water to Mexico is currently in effect through November 9,2013.Under terms and conditions of the contract,the District's pricing for energy and O&M costs attributable to water delivered to Mexico is due no later than 45 days prior to the start of each calendar year (CY)and will remain constant for the calendar year.To meet this required timing and adjust the rate effective January 1,2011,the Board's approval of the new rate is due to the United States Commissioner no later than November 16,2010. Deliveries of water to Mexico are based on a purchase schedule provided by Mexico to the United States Commissioner on a calendar year basis In order to set CY-2010 pricing,the Board requested District staff to perform a full review of prior pricing vs.actual costs incurred,since each year's deliveries are priced based on the most current prior year's costs.On March 3,2010,staff presented the results of their review and the Board approved a rate for the remainder of the year of $65.41 per acre-foot.Although Mexico had initially requested water deliveries totaling 2,563.6 acre-feet for CY-2010, ultimately they requested all deliveries to be cancelled due to sufficient rainfall. FISCAL IMPACT: ANALYSIS: Water is pumped to the Mexico connection from the District's 870-1 Pump Station,which also pumps water to the District's 870-1 Reservoir in the Otay Mesa area.There are a total of 4 energy bills (SDG&E)attributable to the pump station and these bills are used in the calculations for the energy portion of the rate the District charges Mexico.The water volumes pumped to both Mexico and the reservoir are added together,and the energy costs for Mexico are allocated based on the respective percentage of the total water volume.Similarly,maintenance costs for the District's distribution infrastructure from CWA to the Mexico border connection are computed based on Mexico's percentage of the total water volume pumped through that portion of the District's infrastructure.The energy costs are then added to the maintenance and repair costs and expressed as an overall rate per acre-foot. Energy and operations and maintenance expenses have remained relatively stable since the last pricing update.Based on the methodology described above,staff has recalculated the "unit payment due OWD for delivery charges and other expenses ($/acre- foot)"to be used by the San Diegb County Water Authority (CWA) on their monthly billing invoices to Mexico for water deliveries.Effective January 1,2011,the proposed rate is $68.45 per acre-foot which is an increase of 4.6%from calendar year 2010 to 2011./~ None.This adjustment maintains the District in a projected cost neutral position. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning,formalized financial policies, enhanced budget controls,fair pricing,debt planning,and improved financial reporting. LEGAL IMPACT: None. 2 General Manager Attachments: A)Committee Action Form B)Rate Calculation Sheet 3 ATTACHMENT A SUBJECTIPROJECT:Rate Adjustment for Mexico Agreement to Transfer Water COMMITTEE ACTION: The Finance,Administration,and Communications Committee reviewed this item in detail at a meeting held on October 19, 2010.The following comments were made: •The District provides Colorado River water deliveries to Mexico during the year on a request basis.Each year,the District is required to provide Mexico a pricing for the Colorado water deliveries for the upcoming calendar year. This rate must be provided to the United States Commission no later than November 16. •Mexico had requested 2500 AF of water during 2010. However,due to the rain,Mexico was able to meet their water needs and did not require water deliveries during the past caledar year. •Mexico is estimating that they will take 1500 AF during calendar year 2011.As the year progresses,Mexico could cancel this request,as they did in 2010,if their other sources are sufficient to meet their water needs. •Staff reviewed the energy and O&M costs for Mexico's water delivery request of 1500 AF.There was a slight increase in the energy cost and staff is recommending that the wheeling rate be set at $68.45/AF.This is a 4.6%increase from last year's rate.It is felt that this rate would cover the District's costs for the water deliveries. •The committee indicated that they would like to receive additional information on how the wheeling rate is structured.The committee requested that staff present,in detail,a breakdown of the wheeling rate at the November board meeting. After receiving the above requested information,the committee will make its recommendation to the full board at the November meeting.The committee supported presentation of this item on the action calendar. Y;\Board\CurBdPkg\FINANCE\CommMtgMexicowaterRatel10310.doc Mexico Water:Energy /O&M Costs 870/571 Reservoirs /Pump Stations Fiscal Years 2009 -2010 ATTACHMENTB Calculation of Costs,Based on Audited Fiscal Year Expenses Costs FY 2009 FY 2010 Totals Consumption or Sales (In AF) FY 2009 FY 2010 Totals Unit Cost (per AF) FY 2009 FY 2010 O&M 187,478.36 (A) 89,083.57 (D) $276,561.93 PZ871 3,631.02 3,168.47 6,799.49 O&M 20.07 (A)-:-(C) 20.37 (D)-:-(F) Energy 423,531.09 (B) 210,268.14 (E) $633,799.23 Mexico 5,710.20 1,204.80 6,915.00 Energy 45.34 (B)-:-(C) 48.08 (E)-:-(F) Total Cost 611,009.45 299,351.71 $910,361.16 Total AF 9,341.22 (C) 4,373.27 (F) 13,714.49 Total 65.41 68.45 Mexico Water Rates,on a Calendar Year Basis CY Charges to Mexico CY 2010 CY 2011 O&M 20.07 20.37 Energy 45.34 48.08 Total 65.41 68.45 Mexico Water:Energy /O&M Costs 5711870 Reservoirs /Pump Stations Fiscal Year 2010 Costs Month O&M Energy Total Jul-09 $8,265.98 $20,695.76 $28,961.74 Aug-09 37,106.05 14,814.19 51,920.24 Sep-09 2,695.25 26,734.99 29,430.24 Oct-09 -24,693.78 24,693.78 Nov-09 10,691.41 23,688.07 34,379.48 Dec-09 11,447.23 23,423.92 34,871.15 Jan-lO 3,375.79 13,884.09 17,259.88 Feb-lO 573.62 11,206.10 11,779.72 Mar-l0 1,946.05 14,057.45 16,003.50 Apr-IO 362.81 12,169.14 12,531.95 May-lO 9,097.49 11,911.79 21,009.28 Jun-lO 3,521.90 12,988.86 16,510.76 Totals $89,083.57 $210,268.14 $299,351.71 Water Deliveries (In AF) PZ871 Mexico Total 331.77 -331.77 344.99 -344.99 404.30 540.50 944.80 357.29 223.60 580.89 354.95 213.40 568.35 264.23 227.30 491.53 187.17 -187.17 150.95 -150.95 132.41 -132.41 184.70 -184.70 216.49 -216.49 239.22 -239.22 3,168.47 1,204.80 4,373.27 Notes: 1.O&M COSTS consist oflabor and materials attributable to the repair and maintenance ofthe following facilities, as well as the pipelines and flow metering that comprise the OWD infrastructure necessary to transport water from CWA to the pipeline connection at the US -Mexico border. >-571-1 Pump Station >-571-1 Reservoir >-870-1 Pump Station >-870-1 Reservoir SPECIFIC TASKS: >-Water Systems Operators:Reservoir cover cleaning and repair,water sample testing,pipeline and valve seal replacement and rebuilds. >-Pump Mechanics:Electric pump vibration testing,pump effective testing,balancing,thermal testing, oil changes,repairs and rebuilds. >-Equipment Mechanics:Gas engine emission checks,valve adjustment,lube &oil and engine tune ups. 2.ENERGY COSTS consist ofthe 4 SDG&E energy bills directly attributable to the pump stations involved in pumping the water between CWA and Mexico. >-Meter #00930179:571-1 Pump Station >-Meter #01713510:571-1 Pump Station >-Meter #01841629:870-1 Pump Station >-Meter #01896269:870-1 Pump Station 3.WATER DELIVERY is done through the District's 871 Pressure Zone.The costs detailed above are the direct costs incurred for energy and infrastructure O&M required to maintain and pump water throughout this pressure zone. AGENDA ITEM 9a STAFF REPORT TYPE MEETING: SUBMITTED BY: Regular Board Gary Silverman(/! Senior Civil Engineer MEETING DATE: PROJECT/ SUBPROJECT: November 3,2010 P2511-DIV. 001102 NO. 3,4 APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBJECT: Ron Ripperger ~ Engineering Manager Rod posad~ Chief,Engineering Manny Magafia""l1~, Assistant General ~nager,Engineering and Operations Award of a Professional Engineering Services Contract for the North District and South District Interconnection System Project to Lee &Ro,Inc. GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board) awards a professional services contract to Lee &Ro,Inc.and authorizes the General Manager to execute an agreement with Lee &Ro, Inc.for the North District and South District Interconnection System Project in an amount not to exceed $2,769,119 (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 professional engineering services contract with Lee &Ro,Inc.for the North District and South District Interconnection System Project in an amount not to exceed $2,769,119. ANALYSIS: The North District and South District Interconnection System Project (Project)consists of a transmission main and pumping station between the La Presa area of Spring Valley and the Eastlake area in the City of Chula Vista.The Project's primary objective is to provide the capability of conveying potable water from the North District to the South District (and vice versa)via a transmission main and a 10,000 gpm booster pump station.Additional facilities may be included to provide the capability to receive an alternative source of water via the Sweetwater Authority's system in the future. Currently,the District does not have the infrastructure to convey potable water between the North District and the South Districti they are served by the supply from five connections to the San Diego County Water Authority (CWA).The North District is supplied by Flow Control Facility (FCF)No.11 located on CWA's Pipeline 4 and,with the completion of the 36-Inch Pipeline in Jamacha Road this fall,it will also be supplied by FCF No.14 located in El Cajon.The South District is supplied by FCF Nos.10,12 and 13,which are all located along CWA's Pipeline 4.This Project will provide the capability to convey potable water to the North and South service areas during normal operations,during CWA shutdowns on Pipeline 4 or the FCFs,or during emergency conditions.It will improve the reliability to supply potable water from any FCF to any customer within the District.Combined with existing storage infrastructure,this Project will provide the necessary redundancy in the event of an emergency.In addition,this Project will replace the Proctor Valley Road Interconnection Pipelines and the 40 million gallon 624-4 Reservoir,all key projects in the District's Water Resources Master Plan.The replacement of these projects has the potential to save the District over $10,000,000. The District requires a consulting firm to provide a range of professional services,including engineering,environmental,public outreach,surveying,and real estate appraisal for the design of the Project.Proposals were initially solicited in April 2010,and a selection process was conducted according to Board Policy No.21. However,due to concerns with the selection process,at the July 28,2010 meeting,the Engineering &Operations Committee rejected staff's recommendation to send the award of a contract to MWH Americas,Inc.to the full Board.Rather,the Committee directed staff to revise the internal process for selection of consultants to address minor inconsistencies and to re-advertise the Request for Proposal (RFP). The District reinitiated the selection process on August 23,2010,by placing advertisements in the San Diego Union Tribune and the San Diego Daily Transcript,and posting the project on the District's website for Professional Engineering Services.A Pre-Proposal Meeting was held on September 2,2010.Twenty-four people from various consulting firms attended the meeting.Fifteen firms 2 submitted a Letter of Interest (LOI)and a Statement of Qualifications.To maximize the potential number of responses,the RFP was sent to all of the firms that submitted Letters of Interest for the first solicitation in April,which was inclusive of the firms that either submitted a LOI or attended the Pre-Proposal Meeting for the second solicitation. Proposals were received on September 14,2010,from the following four consulting firms: 1.MWH Americas,Inc 2.Lee &Ro,Inc 3.URS Corporation 4.Carollo Engineers These four firms were four of the five firms that responded to our first solicitation.Among the potential lead engineering firms that were invited but did not propose were RBF,CDM,Psomas,Tetra Tech, Urban Logic,Jacobs,Malcom Pirnie,PBS&J,AECOM,Kennedy/Jenks, Kimley-Horn,CH2M Hill,and HDR. Due to the high quality of the proposals received,the District elected to interview all four consultants.The proposals and interviews were evaluated by a selection panel comprised of five District staff members.After conducting the interviews on September 29,2010,the panel completed the consultant ranking process and concluded that Lee &Ro,Inc.had the best approach to the job and provided the best overall value to the District.A summary of the complete evaluation is shown in Exhibit B. Fee negotiations with Lee &Ro,Inc.concluded on October 1,2010, and resulted in a net reduction of $5,012 to their original proposed fee of $2,774,131.Their revised proposed fee,with reduction,is $2,769,119 FISCAL IMPACT: The total budget for CIP P2511,as approved in the FY 2011 budget,is $37,300,000.Total expenditures,plus outstanding commitments and forecast,is $2,835,012.See Attachment B for budget detail. Based on a review of the financial budgets,the Project Manager has determined that the budget is sufficient to support the project. The Finance Department has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund. 3 STRATEGIC GOAL: This project supports the Districtts Mission statement t ~To provide the best quality of water and wastewater services to the customers of Otay Water District t in a professional t effective t and efficient manner.II This project fulfills the Districtts Strategic Goals No.1 -Community and Governance t and No.5 -Potable Water t 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 P2511-North-South District Intertie\Staff Reports\Civil Consultant\Lee &Ro\BD-11-03-10,Award Engineering Contract to Lee & Ro.doc GS/RR.jf Attachments:Attachment A -Committee Action Attachment B -Budget Detail Exhibit A -Location Map Exhibit B -Evaluation Summary 4 SUBJECT/PROJECT: P2511-001102 ATTACHMENT A Award of a Professional Engineering Services Contract for the North District and South District Interconnection System Project to Lee &Ro,Inc. COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item ata meeting held on October 18,2010 and the following comments were made: •Staff indicated that the Project's primary objective is to provide the capability of conveying potable water from the North District to the South District (and vice versa)via a transmission main and a "Booster"pump station that will be located between the La Presa and East Lake areas.Staff stated that the Project will provide reliability in the event of an emergency and may also provide the capability to receive water supply via the Sweetwater Authority's system. •Staff noted that a request for proposal for the same project was originally solicited in April 2010,and that a selection process was conducted in accordance with the District's Policy 21.It was indicated that at the July 28,2010 Engineering,Operations, and Water Resources committee meeting,staff requested to forward to the full board their recommendation to award MWH Americas,Inc.a Professional Engineering Services contract for the same project in an amount not-to-exceed $3,189,776. •Due to some concerns and minor inconsistencies with the District's selection process,the Committee directed staff to revise the guidelines of the consultant selection process and rebid the project. •It was indicated that staff revised the guidelines of the District's selection process for consultants,and in accordance with Policy 21,an RFP for the project was re-advertised in the local newspapers and posted on the District's website on August 23,2010.Staff also noted that the RFP was sent to all of the firms who submitted Letters of Interest (LOI)in the first sOlicitation. •Staff reported that the second solicitation resulted in fifteen (15)firms that submitted a letter of interest and statement of qualifications.By September 14,2010,the District received four (4)proposals from the following firms:1)MWH Americas, Inc.,2)Lee &Ro,Inc.,3)DRS Corporation,and 4)Carollo Engineers.After conducting interviews on September 29,2010, the consultant ranking process was completed which staff indicated that Lee &Ro,Inc.was the most qualified consultant and provided the best overall value. •Staff stated that fee negotiations with Lee &Ro,Inc.concluded on October 1,2010 and resulted in a net reduction of their original fee ($2,774,131)by $5,012.Staff is recommending that the Board award a Professional Services Contract to Lee &Ro, Inc.for the North District and South District Interconnection System Project in an amount not-to-exceed $2,769,119. •Staff indicated that the District has worked well with Lee &Ro, Inc.with previous projects such as the 30-inch Recycled Water Dairymart Road Pipeline and the Jamacha Road 36-Inch Pipeline. •The Committee commended staff for fulfilling the expectations of the bidders by revising the District guidelines to balance the selection process for consultants.Staff was also commended for meeting District expectations by reinitiating the selection process which resulted in a savings of nearly $500,000 for the same project. Following the discussion,the Committee supported staffs' recommendation and presentation to the full board as an action item. ATTACHMENT 8 i-SUp~j5E~C1T!~~-~~~';T:r~~-:';;~~~~:-a:~~~~f-~~i ~~~i~~~~~n~~~'~~~~~~~~~~~~~-~'~':'~~-f~~-'-fo~----l I System Project to Lee &Ro ,Inc.; L_.._..__.•..._.__..._J..___.___. ...__.__..__.__._..____._.___.___..._..__...__..._._._...._._.~ Olay Water DIstJ1ct P2511 -North DistJ1ct-South DlstrIcllnterconnection System Date Updated:October4.2010 Budget Committed 37.300,000 Expenditures Outstanding Commitment& ForBCBst ProjectedFinal Cost Vendor/Comments ~Iall.ning _ Labor Printing Professional Legal Fees Other Legal Expenses Regulatory Agency Fees Consultant Contracts ServiceContracts Total Planning Design Labor In House/Labor (future) Regulatory Agency Fees OtherAgency Fees -------.-..-.- 55,670 55,670 562 562 6,106 6,106.----..-~-- 2,769,119 2,769,119--"--._- 2,831,457 62,338 2,769,119 3,130 3,130 55,670 562 GARCIA CALDERON &RUIZ LLP 6,106 CPM PARTNERS INC2,769:119---'jj~-E&ROINC- 2,831,457 3,130 Consultant Contracts --_._---,-~._- Service Contracts Total Design Construction Labor Regulatory Agency Fees Consultant Contracts Construction Contracts Service Contracts.._~_._,~---~".,-------_._._-- AccpUclose-out Total Construction --.__.._..-.-----. 98 98 327 327 3,555 3,555 98---327 3,555 ...._..-__-._0..•-..__••___ SAN DIEGO DAILY TRANSCRIPT-----.._.._---__.,---..__-----------_. SAN DIEGO UNION-TRIBUNE LLC Grand Total 2,835.012 65.893 2,769.119 2.835,012 OTAY WATER DISTRICT NORTH /SOUTH DISTRICT INTERCONNECTION SYSTEM PROPOSED PUMP STATION AND PIPELINE ALIGNMENT CIP #P2511 "Proposed Pump Station Legend~<Cii~I!:> if Proposed Pipeline Alignment~:c =a OWD Boundary~_Division 1ICl_Division 2 OJ'e _ ~Division 3 :g Division 410 o Division 5i....-------....--- ~~ 0.~zi2a::~ 0...._-----_..._----------------------------------_. EXHIBIT A EXHIBIT B SUMMARY OF PROPOSAL RANKINGS P2511 North/South District Interconnection Project WRITTEN ORAL Qualifications of Team Responsiveness, Project Understanding Technical and Management Approach INDIVIDUAL SUBTOTAL - WRITTEN AVERAGE SUBTOTAL· WRITTEN Proposed Fee' Consultant's Commitment to DBE AVERAGE TOTAL Additional Creativity Strength of Project WRITTEN and Insight Manager Presentation, Communication Skills Quality of Response to Questions INDIVIDUAL AVERAGE TOTAL TOTAL-ORAL ORAL TOTAL SCORE REFERENCES MAXIMUM POINTS 30 25 30 85 85 15 YIN 100 15 15 10 10 50 50 150 Poor/Goodl Excellent 10 11 Carollo Bob Kennedy 23 18 22 63---.-.--.----1----- - -..-..---.---..--f---._--_ Ron Ripperger 24 20 24 681----'--....:....·_---..-...--...----.--_.-.....----..-..--.---_.-1 Pedro Porras 22 15 20 57 --_.._------._----_....-_.-_.---j-.---.- David Charles 24 20 21 651-----...._._._.._ Kevin Cameron 26 21 23 70 65 15 y 80 11 7 6 35-.---..--.-.-------.----.------1---------- 11 12 8 7 38-._._._--~--. 10 12 7 7 36---------------........----_.----------_._- 10 9 6 5 30----~------__i.------------1 11 6 6 33 34 114 Lee &Ro Bob Kennedy 27 23 28 78-.--.-._-•..-.-_.....---....-.-1--._--..._....-...-."--_ Ron Ripperger 25 23 28 76-.-----.---..- - ---·_·-1----·---1-.-1-----.-..- Pedro Porras 16 22 25 63-_._.__...----_._.--._----"'-'-'--'--'-'-'.__....•_-_.__._--_.__.-•.._- David Charles 28 24 27 79""'-._.--_..._--.._..--..__.._.._--- Kevin Cameron 28 23 27 78 75 9 y 84 14 14 9 8 45..---- -.--.--------1--_..-_.--.------- 13 13 9 9 44---------1---_.._._.-1-.----1 14 14 9 9 46----_..-_.._-._---_._-- 13 13 8 8 421----·------'-"---....----- 13 14 9 9 45 44 128 Excellent MWH Bob Kennedy 28 21 25 74-----------_._.- -._..._-_..-._----- ------ RonRipperger 24 23 26 73---..-._- --------.-------..-------1--..--..-.---- Pedro Porras 25 20 25 70----------.----_.-....-.--.-------...- ---_.._._-1---_..._--- David Charles 28 24 25 77-.----.-------..---.----....---.-1----- Kevin Cameron 29 24 28 81 10 12------ 13 13-.._--".----75 1 Y 76 13 13---_.----12 13I--.---...-.--_. 12 14 7 9 38--+---_.---------_..._-- 8 8 42 -~-'.--- 9 9 44 8 7 40------------ 9 8 43 41 117 11939 37 391311 13 12 8 7 40---------'--'---·----I-------~.-....----..-----.-- 12 13 8 8 41--..----.+------f--.---- 14 10 7 7 38--------- 12 11 7 7 8 7 80y971 Bob Kennedy 22 20 26 68 --"-'-'--"-----.,.-.--..----.-.--.----..-.--.-----1------..- Ron Ripperger 25 22 27 74------.--...---------"'--"'-'--"-- ---..-.---1------ Pedro Porras 18 22 25 65---_._."---"'---"-.__.._-_._--_..----_.-._- David Charles 25 24 27 76_.._._._--_.._------"----_.._--_..__._-_._-_.-_._---_._-------'-"-'-'.__.....• Kevin Cameron 26 20 27 73 URS Review Panei does not see or consider fee when scoring other categories.Fee is scored by the PM,who is not on Review Panel. FEE SCORING CHART Consultant Proposed Fee Position Score Carollo $2,700,000 lowest 15 URS $2,773,929 9 Lee &Ro $2,774,131 9 MWH $2,861,401 highest 1 P:IWORKINGICIP P2511-North-South District IntertielStaff ReportslCivii ConsultantlLee &RolExhibit B Summary of Proposal Rankings -Fee and Interview Quality Assurance Approval Sheet Subject:Award of a Professional engineering Services Contract for the North District and South District Interconnection System Project to Lee &Ro,Inc. Project No.:P2511-001102 Document Description:Staff Report for the November 3,2010 Board Meeting Author: QA Reviewer: Manager: s~ Printed Name Signature Printed Name Date /0/:;--/16 Date /0 /'/10 Date The above signatures attest that the attached document has been reviewed and to the best of their ability the signers verify that it meets the District quality standard by clearly and concisely conveying the intended information; being grammatically correct and free of formatting and typographical errors,accurately presenting calculated values and numerical references;and being internally consistent,legible and uniform in its presentation style. AGENDA ITEM 9b STAFF REPORT TYPE MEETING:Special Board SUBMITTED BY:Bob Kennedy 'BXL Associate Civil Engineer MEETING DATE:October 21,2010 W.O.JG.F.NO:P2451-DIV.NO.ALL 001101 APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBJECT: Ron Ripperger VUV Engineering Manager Rod posad~~ Chief,Engineering Manny Magafia~~ Assistant GeneralLJanager,Engineering &Operations Award of a Professional Engineering Services Contract for the Otay Mesa Conveyance and Disinfection System Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors authorizes the General Manager to execute an agreement for Professional Engineering Services with AECOM Technical Services, Inc.,(AECOM)in an amount not to exceed $3,910,297 for the Otay Mesa Conveyance and Disinfection System Project (see attached Exhibit A for project location.) COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a Professional Engineering Services agreement with AECOM in an amount not to exceed $3,910,297 for the Otay Mesa Conveyance and Disinfection System Project. ANALYSIS: The District's 2007 Integrated Water Resources Plan (IRP)was prepared primarily to identify alternate supplies of potable and recycled water.The reliability of existing imported water supplies is not assured given the potential for drought or a seismic event,plus the uncertainties associated with current regulatory controls on State Water Project deliveries.These have made it necessary for the District to look elsewhere to meet present and future water demands in a reliable and cost effective manner. One of the recommendations of the IRP for supply diversification is to explore the feasibility of a binational ocean desalination facility within Mexico.Staff has been meeting with state and local authorities in Baja California to discuss the feasibility of such a project.After many years,a desalination facility is high on the agenda at all levels of government in Mexico. Preliminary Engineering has begun to identify alignments for a transmission pipeline to convey desalinated and conditioned potable water produced at the Rosarito desalination plant in Mexico to the border. The Otay Mesa Conveyance and Disinfection System Project (Project)will provide a potable water transmission pipeline and pump station to convey the desalinated water from the border of Mexico to Roll Reservoir on Otay Mesa.The District requires the services of an engineering consulting firm (Consultant)to provide a range of services for the Project,including the preparation of a Preliminary Design Report and contract documents;provide public outreach services;coordinate with the California Department of Public Health (CDPH)to identify a cost effective means to meet regulations;conduct water quality testing;and prepare the environmental documentation to provide compliance with CEQA/NEPA for the Project. In accordance with the Board of Directors Policy No.21,the District initiated the selection process on August 23,2010,by placing advertisements in the San Diego Union Tribune and the San Diego Daily Transcript,and posting the project on the District's website for Professional Engineering Services.A Pre-Proposal Meeting was held on September 7,2010.Thirty-two primary engineering and sub-consultant firms submitted a Letter of Interest (LOI)and a Statement of Qualifications.To maximize the potential number of responses,the advertisement was sent to all of the firms that submitted Letters of Interest for the North District and South District Interconnection System Project. Proposals were received on September 27,2010,from the following eight consulting firms: 1.AECOM Technical Services,Inc. 2.URS 3.RBF Consulting 4.Malcolm Pirnie,Inc. 5.Carollo 6.Tetra Tech 2 7.Camp,Dresser &McKee,Inc. 8.HDR Engineering,Inc. Due to the high quality of the proposals received,the complexity of several key tasks required,and the difficulty in discerning the quality of key staff through a written proposal,the District elected to interview all eight consultants.The proposals and interviews were evaluated by a selection panel comprised of five District staff members.After conducting the interviews on October 7th and 8th ,2010,the panel completed the consultant ranking process and concluded that AECOM received the highest ranking and provided the best overall value to the District.A summary of the complete evaluation is shown in Exhibit B. Fee negotiations with AECOM concluded on October 11,2010,and resulted in a net reduction of $110,000 to their originally proposed fee.An allowance for additional studies was also reduced by $200,000.Staff recommends the award of a professional services contract to AECOM for a not-to-exceed amount of $3,910,297. FISCAL IMPACT: The total budget f CIP P2451,as approved in the FY 2011 budget,is $30,000,000.Based on a review of the financial budget,the Project Manager has determined that the budget is sufficient to support this project. The projected engineering services expenditures through Fiscal Year 2014 are as follows: Fiscal Year 2nd quarter,FY 2011 3rd quarter,FY 2011 4th quarter,FY 2011 1st quarter,FY 2012 2nd quarter,FY 2012 3rd quarter,FY 2012 4th quarter,FY 2012 FY 2013 FY 2014 Projected Consultant Expenditure (Cumulative) $240,000 $750,000 $1,430,000 $2,000,000 $2,600,000 $3,200,000 $3,400,000 $3,865,000 $3,910,000 Total:$3,910,000 The Finance Department has determined that 40%of the funding is available from the Expansion Fund and 60%of the funding is available from the Betterment Fund. 3 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"and the District's Strategic Goal,"To satisfy current and future water needs for potable,recycled, and wastewater services." LEGAL IMPACT: None. General Manager P,\WORKING\CIP P2451 Desalination Feasibility Study\Staff Reports\Board 10-21-10 Award Engineering\BD 10-21-10,Staff Report, Otay Mesa Conveyance and Disinfection System Project Consultant Award,(BK-RR).doc BK/RR:j f Attachments:Attachment A -Committee Action Exhibit A -Location Map Exhibit B -Summary of Ranking Spreadsheet 4 ATTACHMENT A SUBJECT/PROJECT::AwharOdtof Ma procfessional Engdine~r~ngf se~vices contrpac~··fot···rWj it e ay esa onveyance an DlSln ectlon System rOJec P2451-001101 ,.......................................................................................L.... COMMITTEE ACTION: ............................................J The Engineering,Operations,and Water Resources Committee reviewed this item at a Special Committee Meeting held on October 14,2010 and the following comments were made: •Staff is requesting the Board's authorization to enter into a Professional Engineering Services agreement with AECOM in an amount not-to-exceed $3,910,297 for the Otay Mesa Conveyance and Disinfection System Project. •It was discussed that the District's 2007 Integrated Water Resources Plan (IRP)identified alternate supplies of potable and recycled water.As the reliability of existing imported water supplies is not assured,it has made it necessary for the District to look elsewhere to meet present and future water demands that will be both reliable and cost effective. •One of the recommendations of the IRP for supply diversification is to explore the feasibility of a binational ocean desalination facility within Mexico.Staff has been meeting with state and local authorities in Baja California to discuss the feasibility of such a project.After many years,a desalination facility is high on the agenda at all levels of government in Mexico.Preliminary Engineering has begun to identify alignments for a transmission pipeline to convey Pacific Ocean desalinated and conditioned potable water produced at the Rosarito desalination plant in Mexico to the border. •The Otay Mesa Conveyance and Disinfection System Project (Project) will provide a potable water transmission pipeline and pump station to convey the desalinated water from the border of Mexico to Roll Reservoir on Otay Mesa.The District requires the services of an engineering consulting firm (Consultant)to provide a range of services for the Project,including: iI r~:I:: I tlf [ I:~:. The preparation of a Preliminary Design Report to establish the alignment for the pipeline and the location of the pump station and disinfection facility. Coordinate the pipeline crossing at the border with NSC Aqua Prepare contract documents Provide public outreach services Coordinate with the California Department of Public Health (CDPH)to identify a cost effective means to meet regulations Conduct water quality testing Prepare the environmental documentation to provide compliance with CEQA/NEPA for the Project. •In accordance with the Board of Directors Policy No.21,the District initiated the selection process on August 23,2010 and received proposals from eight (8)consulting firms.After evaluating the proposals and conducting interviews,AECOM was selected by the selection panel as the most qualified respondent.It was noted that fees proposed by each firm were not disclosed to the panel members until after all the scores were tabulated. •It was discussed that staffs'report includes a table that estimates the expected expenditures for engineering consultant services through Fiscal Year 2014 for the project.However,the District can,should it decide the project is no longer feasible,terminate the contract at any time. •The committee discussed that AECOM's fee included an allowance item for future studies.As staff is unable to scope out the details of these studies at this point of the RFP,their fee was reduced down $200,000 ($500,000 to $300,000).Such studies included a corrosion study of how the acquired desalinated water will blend and react with the District's existing facilities.At this moment,staff does not know what additional studies will be required to support this project.It was indicated that staff is comfortable with the identified $300,000 for studies based on what staff knows today. •Staff noted that the project has been discussed with the State Health Department and the International Boundary and Water Commission and the project has received positive feedback. •The committee thanked staff for their thoroughness in the evaluation process and indicated that they felt the evaluation process was a well developed program. •It was noted that this item is being presented at special meetings to move the work forward a couple weeks to meet the project schedule. Following the discussion,the Committee supported staffs'recommendation and presentation to the full board at a Special Meeting of the Board of Directors scheduled on October 21,2010 as an action item. EXHIBIT A OTAY WATER DISTRICT Otay Mesa Conveyance and Disinfection Facility Project EXHIBIT A 2,000Feet EXHIBIT B SUMMARY OF PROPOSAL RANKINGS Otay Mesa Conveyance and Disinfection System Project CIP P2451 WRITIEN ORAL Understanding of Soundness and INDIVIDUAL AVERAGE Consultant's AVERAGE Additional Presentation,Quality of TOTALSCORE REFERENCESQualificationsofScope,Schedule Viability of SUBTOTAL-SUBTOTAL"Proposed Fee"Commitmentto TOTAL Creativity and Strength of Communication Response to INDIVIDUAL AVERAGE Staff and Resources Proposed Project WRITIEN WRITIEN OBE WRITTEN Insight Project Manager Skills Questions TOTAL-ORAL TOTAL ORAL Plan MAXIMUM POINTS 30 25 30 85 85 15 YIN 100 15 15 10 10 50 50 150 Poor/Goodl Excellent Rod Posada 28 20 25 73 14 14 8 8 44-PedroPorras 22 25 22 69 15 11 8 8 42 AECOM Ron Ripperger 26 23 27 76 74 10 Yes 84 13 14 9 7 43 43 127 Good Gary Silverman 27 23 27 77 13 12 8 7 40- Danie/Kay 27 23 26 76 13 14 9 9 45 Rod Posada 27 22 22 71 14 13 8 8 43 PedroPorras 23 25 22 70 11 11 8 7 37 URS -70 10 Yes 80 40 120RonRipperger2523257312138740 Gary Silverman 25 20 24 69 11 11 7 7 36 -DanielKay 22 23 23 68 14 14 9 9 46 Rod Posada 27 15 20 62 13 14 8 6 41-----..._--- Pedro Porras 23 22 21 66 10 10 5 5 30 RBF Consulting RonRipperger 23 22 24 69 66 13 Yes 79 12 13 8 7 40 36 115 Gary Silverman 20 22 19 61 10 9 7 5 31 DanielKay 24 23 24 71 12 12 7 8 39 Rod Posada 29 23 28 80 15 15 9 10 49------.-Pedro Porras 24 23 24 71 11 11 8 7 37MalcolmPirnie,-74 4 Yes 78 --41 119Inc,RonRipperger 25 22 23 70 12 12 8 9 41 Gary Silverman 27 22 25 74 11 12 8 7 38 Danie/Kay 24 23 26 73 13 12 8 8 41 RodPosada 25 20 20 65 12 14 8 7 41.--------Pedro Porras 20 15 18 53 13 11 7 7 38 Carollo RonRipperger 23 22 22 67 65 15 Yes 80 12 13 8 8 41 37 117-GarySilverman 28 20 25 73 9 10 7 7 33 DanielKay 26 20 22 68 9 9 6 6 30 RodPosada 25 18 20 63 12 12 8 8 40 Pedro Porras 24 22 22 68 15 12 10 10 47 TETRA TECH 68 12 Yes 80 -39 119RonRipperger2422236913138842 GarySilverman 24 21 23 68 11 10 8 6 35 DanielKay 25 21 24 70 11 8 7 7 33 Rod Posada 28 22 25 75 15 12 9 9 45 Pedro Porras 25 24 24 73 15 10 8 8 41Camp,Dresser &Ron Ripperger 22 21 22 65 71 10 Yes 81 11 10 8 7 36 38 119McKee,Inc Gary Silverman 26 21 26 73 12 6 7 7 32 Danie/Kay 22 24 25 71 10 7 8 9 34 RodPosada 28 22 29 79 15 15 9 9 48 Pedro Porras 27 24 23 74 13 11 8 8 40HDRRonRipperger761Yes77 44 121Engineering,Inc 26 23 25 74 14 14 9 8 45 Gary Silverman 27 23 28 78 14 13 9 8 44 Danie/Kay 26 23 26 75 13 13 8 8 42 ReView Panel does not see or consider fee when scoring other categories.Fee IS scored by the PM,who IS not on ReView Panei. FEE SCORING CHART Consultant Proposed Fee Position Score Carollo $3,364,207 lowest 15 RBF $3,680,135 13 Tetra Tech $3,866,993 12 AECOM $4,220,297 10 URS $4,295,694 10 COM $4,330,791 10 Malcolm Pirnie $5,437,098 4 HDR $5,998,488 highest 1 P:IWORKINGICiPP2451 Desalination Feasibility StudylAgreements-Contracts-RFPsIOesal RFPIProcesslReview Panel-Cost ProposallP2451 Summary of Proposal Rankings Fee and Interview.xls Quality Assurance Approval Sheet Subject:Award of a Professional Engineering Services Contract for the Otay Mesa Conveyance and Disinfection System Project to AECOM Technical Services,Inc. Project No.:P2511-001102 Document Description:Staff Report for Special Board Meeting on October 21 ,2010 Author: QA Reviewer: Manager: Signature Eto 't\t~~~ Printed Name JkI)~ f1'71.f·Stl--V~IV1~ Printed Name Printed Name Date Date Date STAFF REPORT AGENDA ITEM 10a TYPE MEETING:Regular Board Meeting SUBMITTED BY:Mark Watton, General Manager MEETING DATE: WO.lG.F.NO: November 3,2010 DIV.NO. SUBJECT:Board of Directors 2010 and 2011 Calendar of Meetings GENERAL MANAGER'S RECOMMENDATION: At the request of the Board,the attached Board of Director's meeting calendar for 2010 and 2011 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2010 and 2011 Board of Director's meeting calendars and amend the schedules 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. Attachments Calendar of Meetings for 2010 and 2011 G:IUserDataIDistSecIWlNWORDISTAFRPTSlBoard Meeting Calendar ll-3-10.doc Board of Directors,Workshops and Committee Meetings 2010 Regular Board Meetings: January 6,2010 February 3,2010 March 3,2010 April 7,2010 May 5,2010 June 2,2010 July 7,2010 August 4,2010 September 1,2010 October 6,2010 November 3,2010 December 1,2010 (Canceled) Board Workshops: Special Board or Committee Meetings (3fd Wednesday ofEach Month or as Noted) January 20,2010 February 17,2010 March 17,2010 April21,2010 May 19,2010 June 16,2010 July 21,2010 August 18,2010 September 15,2010 October 20,2010 November 17,2010 December 7,2010 Budget Workshop,Monday,May 17,2010 Special Board Meeting/Board Retreat Workshop,September 15,2010 G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A for 2010 10-6-10.doc Page 1 of 1 Regular Board Meetings: January 5,2011 February 2,2011 March 2,2011 April 6,2011 May 4,2011 June 1,2011 July 6,2011 August 3,2011 September 7,2011 October 5,2011 November 2,2011 December 7,2011 Board Workshops: Board of Directors,Workshops and Committee Meetings 2011 Special Board or Committee Meetings (3 rd Wednesday of Each Month or as Noted) January 19,2011 February 16,2011 March 16,2011 April 20,2011 May 18,2011 June 15,2011 July 20,2011 August 17,2011 September 21,2011 October 19,2011 November 16,2011 December 21,2011 Budget Workshop,TBD Special Board Meeting/Board Retreat Workshop,TBD G:\UserData\DistSec\WlNWORD\STAFRPTS\Board Meeting CalendarAttach A for 2011 11-3-10.doc Page 1 of 1 AGENDA ITEM 11 STAFF REPORT TYPE MEETING:Regular Board MEETING DATE:November 3,2010 SUBMITTED BY: Mark Watton General Manager W.O./G.F. NO: N/A DIV. NO. N/A SUBJECT:General Manager's Report GENERAL MANAGER: FLAGSHIP PROJECTS •Update on the design,construction,and environmental of the 36-Inch Potable Water Pipeline from FCF #14 to Regulatory Site (CIP P2009)for the month of September 2010: o Final punchlist items are being addressed by CCL.The pipeline is in service with project completion scheduled for November 2010.Staff plans to send out end-of- project customer surveys in November to receive feedback from the community on how the District did with the construction of the pipeline. ADMINISTRATIVE SERVICES,INFORMATION TECHNOLOGY AND FINANCE: ADMINISTRATIVE SERVICES: Human Resources: •Employee Information Meeting -The District held Employee Information Meetings on October 21st •These meetings are held every six months to provide employees with relevant information regarding key District projects and District updates.Items covered at the meetings included an update on the employee satisfaction survey,CWA/MWD dispute,Rancho del Rey Well and 36-inch Pipeline,year- end audit,Windows 7 rollout,wireless project update, new phone system,and upcoming Otay activities. •Health Fair/Open Enrollment Meetings -Employees attended a Health Fair held on October 13th where employees participated in health screenings and visited several health-related vendors.Open Enrollment informational meetings were held October 19th where health representatives provided information and answered employee questions.Both events were well attended by District employees. •Retirement Week -The District participated in Retirement Week.This is a week designated for employees to focus on being prepared for retirement.CalPERS was onsite for employee trainings to ensure that employees fully understand their CalPERS pension benefits and deferred compensation providers were onsite for individual employee meetings. •New Hires October. There were no new hires in the month of Water Conservation and School Education: •Outreach Events -Water Conservation Specialist,Rhianna Pensa,gave a presentation at the Water Smart Innovation Conference on October 6~entitled,"From Report to Reality:One Agency's Delayed Success Story".The presentation highlighted our success at helping the District's two largest institutional sites use water more efficiently.The District also hosted a Smart Irrigation Technologies Workshop on October 16th,and staffed a booth at Marshall Elementary School's Fall Festival on October 29th • •Water Waste Reporting -In October (through the 26th), there were three reports of water waste,either phoned in or reported through the District's website.The water waste report listing the activity is attached. •School Education Update -In October,six school Garden tours were conducted involving a total of 223 third, fourth,and fifth graders and 54 adults from Avocado Elementary,Vista Grande Elementary,and Casillas Elementary School.Another four Garden tours are currently scheduled through the remainder of the school year. 2 Purchasing and Facilities: •Purchase Orders -There were 132 purchase orders processed in October 2010 for a total of $373,667.33. INFORMATION TECHNOLOGY AND STRATEGIC PLANNING: •Hard Copy Facility Books -Both potable and sewer facility books have been created on GIS format.The "cartographic representation"technology has been applied to this project.This design will greatly improve the process of future facility book updates.The copies of the new potable and sewer books have been delivered to Operations and Engineering departments for QAQC. •Automated GIS-Based Planning/Decision Support Tool -The GIS department is working with PBS&J to conduct a study on how to utilize current GIS data and technology to develop an intelligent model that integrates risk management and asset management.The goal is to reduce water loss and life-cycle costs,maximize system reliability,and minimize short and long-term operational and management costs by utilizing the existing water model and future asset management data. •Arclogistic for Customer Service Department -The GIS- based routine software,Arclogistic,has been fully tested and implemented for the Customer Service department.This application will save the Meter Reading staff time for the low-density readings.The program will allow the Lead Meter Reader to dispatch the workloads by the optimized routes and balanced workloads. This application has also been utilized by the Water Conservation Specialists to plan their visits to the field.The feedback has been very good. •Security,Access Control,and Video Surveillance -Staff installed additional FOB readers at the Treatment Plant to secure the chlorine scrubber area.Cameras were also added with additional storage for NVR recording.Access control enhancements include new pan-tilt-zoom cameras, FOB/RFID readers,motorized gate control and Fire Department access at the 1485 Pump Station.Access control enhancements are nearing completion at the 1296 and 850-4 Reservoirs,and FOB/RFID readers and cameras are in place. 3 •Virtualization -The Network Engineer received VMware training and has "virtualized"the District's servers which will reduce the number of servers needed in the Data Center and Disaster Recovery Data Center,saving energy costs and greatly enhancing disaster recovery procedures. •Surplus Data on SharePoint -Staff created an online paperless form to better track IT surplus equipment in SharePoint. •Windows 7 Upgrade -Staff began installing new desktops with Windows 7 and Office 2007 in the Administrative Services department. •Internal Pay Accounts -All District meters have been assigned OB accounts and are billed monthly with a regular billing cycle.The purpose of this process is to track Otay's monthly water usage and assist Finance in their annual budgeting process.This was implemented in September 2010. •2012-2014 strategic Plan -The process for developing the strategic plan for the next three years has begun.The plan's themes will focus on both efficiency and methods of increasing customer satisfaction through enhanced,but cost-effective,services.The District will be employing the "Balanced Scorecard"methodology and anticipates a high level of employee involvement in generating this plan. •GBA Conference -Presentation of Inspection Daily Reporting Using IMS -The Construction Inspectors are now utilizing IMS for documenting their daily inspection activities.Otay was requested,by GBA,to make a presentation during their annual conference regarding the use of IMS for Inspection Daily Reporting.The presentation was made by David Charles and Cyndi Alcantara,and was well received by the attendees.The conference was held in San Diego on September 27-29, 2010. •Business Intelligence (BI)Conference -In September, Geoff Stevens attended a Business Intelligence conference in San Diego.The conference was focused on how businesses are automating processes and streamlining how to use information more efficiently. 4 •SymPro Treasury Software -The Finance Department SymPro Treasury Software was upgraded to Version 7.2.3 to make it Windows 7 compatible. FINANCE: •Alternative Payment Types -The total alternative payments in September reached 23,659.Alternative payment types include ACH,web payments,online banking, credit card by phone,and payment through retailers such as Wal-Mart.These methods of payments are much less expensive to the District than the standard payment via check.The new electronic bill and presentment site went live on June 21,2010.As of October 15,2010,12,719 customers had registered for this new online service, with 6,047 choosing to stop receiving paper bills, another significant cost savings to the District. •New Bill Format -Staff is preparing a new version of the water and sewer bills which will bring greater clarity and information to customers.The first mock up of this bill will be presented to the Board in January. •FY 2010 CAFR -The CAFR will be submitted to GFOA for award consideration in December.Copies will be distributed to the Board at the January Board meeting. •The financial reporting for September 30,2010 is as follows: o For the two months ending September 30,2010,there are total revenues of $20,857,759 and total expenses of $20,857,361.The revenues exceeded expenses by $398. •The financial reporting for investments for September 30, 2010 is as follows: o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of September 30, 2010,total $103,838,461.15 with an average yield to maturity of 1.059%.The total earnings year-to-date are $312,770.01. o The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of August 31, 2010,total $107,002,302.16 with an average yield to maturity of 1.056%.The total earnings year-to-date are $214,256.57. 5 ENGINEERING AND WATER OPERATIONS: Engineering: •Otay Lakes Road Widening -Southland Paving completed the installation of approximately 1,700 LF of recycled pipeline.They are still working on the potable Pressure Reducing Station and continuing the recycled pipeline installation in Otay Lakes Rd.The District and the City have partnered in a project to install a 12-lnch Recycled Water Pipeline and a Road Widening Project on Otay Lakes Road.The recycled pipeline will start at Telegraph Canyon Road and end in front of Bonita Vista High School. The project also includes the relocation of a few potable water facilities.The project is on budget and on schedule.This project is scheduled to be completed January 29,20'11.(R2094,P2496) •Rancho Del Rey Groundwater Well Development:The well development has been completed and reports on water quality and quantity are being prepared.All equipment has been removed from the site and landscaping has been restored to original condition.Architectural renderings are being prepared.Conceptual design and a Feasibility Study are being prepared for board information for the January Board Meeting.Staff is preparing a Request for Proposal for the design of a treatment facility.(P2434) •For the month of September 2010,the District sold 22 meters (44.5 EDUs)generating $176,966 in revenue. Projection for this period was 12 meters (24 EDUs)with budgeted revenue of $217,086.Projected revenue from June I,2010 through June 30,2011 is $2,605,036;against a budget of $651,259 as of September 30,2010.Revenue collected to date is $478,106 which is 27%below projections. •For the month of September staff reviewed 18 potential easement encroachments and will be gathering all the necessary information prior to informing customers of the removal of the encroachment.The above is part of an on- going program of easement monitoring. •Approximately 785 linear feet of both ClP and developer project pipeline was installed in September 2010.The 6 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 13 through October 27,2010 that were within staff signatory authority: Date Action Amount Contractor/ProjectConsultant Jamacha Rd.8-Inch 09-17-10 CO#l (2,226.09)A.B.Hashmi Sanitary Sewer Replacement (S2021) HVAC 803-1 &850-2 Pump 09-20-10 P.O.$19,421.00 Engineering Inc stations (P2502 & P2503) ICF Otay Mesa Recycled 09/29/10 CO#l $9,115.00 International Water System (R2087,R2077,R2058) Check County of San San Miguel Regional 10/05/10 $2,060.25 Training Facility MNDRequestDiego(P1253) Architectural SR Bradley renderings.Rancho 10/11/10 P.O.$4,200.00 &Del Rey GroundwaterAssoc.Well Development (P2434) Check City of Chula Hunte Pkwy north of 10/13/10 Request $5,500.00 Vista Proctor Valley Road (P2399) 36-Inch Potable Water 10/27/10 Check $9,625.04 City of El Pipeline from FCF #14 Request Cajon to Regulatory Site (P2009) Water Operations: •Total number of potable water meters is 48,139 . •The September potable water purchases was 3,170.0 acre feet.This is 8.5%less than budgeted water sales of 3,463.0,and 24.4%less than the CWA allocation. 7 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Potable Water Purchases ~Purchases Budget ___Allocation Jul-10 Aug-10 Sep-10 Oct-10 •Recycled water consumption for the month of September is as follows: Total consumption was 610.6 acre-feet or 198,902,176 gallons and the average daily consumption was 6,630,073 gallons per day. Total number of recycled water meters is 687. Total recycled water consumption to date for FY 2011 is 1,726 6 acre-feet. •Wastewater flows for the month of September were as follows: • • • • • Total basin flow,gallons per day:1,929,000. Spring Valley Sanitation District Flow to Metro, gallons per day:639,000. Total Otay flow,gallons per day:1,290,000. Flow Processed at the Ralph W.Chapman Water Recycling Facility,gallons per day:1,253,000. Flow to Metro from Otay Water District,gallons per day:56,007. •For the month of September there were no new wastewater connections;total EDUs is 6,080. 8 ~1V¢tm;1ib General Manager ~ 9 Water Waste Report Broken Sprinklers High Usage Leak Overspray Runoff Washing due to over-Down Paved watering Surfaces Washing Vehicles without bucket/hose nozzle Watering after lOami before 6pm Total April 2009 ~ay 2009 June 2009 July 2009 August 2009--~----- ~eptel11ber 2q99 October 2009--- November 2009 December 2009 =~.--=.•----~",..~."._----......-_. ~C1nuary 2010 ~ebruary 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 Total 6 4 4 1 2 17 7 23 9 6 1 1 47 13 35 5 8 10 1 7 79 6 24 9 17 4 4 6 70 11 15 7 8 1 1 9 52 6 17 5 7 2 1 3 41 4 6 2 6 1 1 20 1 6 7 11 1 26 1 15 1 4 1 22 1 2 1 4 1 9 1 2 3 6 2 1 5 2 10 1 4 1 5 11 1 3 4 3 1 1 13 2 2 1 2 1 1 9 4 2 6 3 6 4 13 2 1 5 2 3 1 14 1 1 1 3 68 2 169 60 103 22 9 35 468 OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THREE MONTHS ENDED SEPTEMBER 30,2010 Exhibit A Annual YTD YTD YTD Budget Actual Budget Variance Var 0/0 REVENUES: Water Sales $36,560,100 $10,856,266 $10,986,700 $(130,434)(1.2%) Energy Charges 1,854,600 548,125 549,900 (1,775)(0.3%) System Charges 9,532,200 2,347,803 2,345,900 1,903 0.1% Penalties 747,600 223,850 227,400 (3,550)(1.6%) MWD &CWA Fixed Charges 7,639,400 1,691,392 1,689,300 2,092 0.1% Total Water Sales 56,333,900 15,667,436 15,799,200 (131,764)(0.8%) Reclamation Sales 7,620,600 2,817,154 2,851,400 (34,246)(1.2%) Sewer Charges 2,270,500 614,573 619,675 (5,102)(0.8%) Meter Fees 50,300 10,562 12,600 (2,038)(16.2%) Capacity Fee Revenues 1,095,300 238,175 243,600 (5,425)(2.2%) Betterment Fees for Maintenance 657,400 163,248 164,400 (1,152)(0.7%) Non-Operating Revenues 1,948,300 436,983 436,925 58 0.0% Tax Revenues 3,843,900 131,143 125,200 5,943 4.7% Interest 296,200 59,084 64,100 (5,016)(7.8%) General Fund Draw Down 1,657,500 414,400 414,400 0.0% Transfer from OPEB 1,220,000 305,000 305,000 0.0% Total Revenues $76,993,900 $20,857,759 $21,036,500 $(178,741)(0.8%) EXPENSES: Potable Water Purchases $26,238,700 $8,082,051 $8,130,500 $48,449 0.6% Recycled Water Purchases 1,179,900 480,806 504,050 23,244 4.6% CWA-Infrastructure Access Charge 1,550,700 346,044 346,200 156 0.0% CWA-Customer Service Charge 1,315,200 293,970 294,000 30 0.0% CWA-Emergency Storage Charge 2,875,200 645,174 645,300 126 0.0% MWD-Capacity Res Charge 665,100 166,338 166,200 (138)(0.1 %) MWD-Readiness to Serve Charge 1,232,400 307,092 308,100 1,008 0.3% Subtotal Water Purchases 35,057,200 10,321,475 10,394,350 72,875 0.7% Power Charges 2,520,700 733,882 782,300 48,418 6.2% Payroll &Related Costs 16,749,400 4,635,760 4,621,307 (14,453)(0.3%) Material &Maintenance 3,769,500 935,126 942,375 7,249 0.8% Administrative Expenses 5,130,400 795,333 927,953 132,620 14.3% Legal Fees 451,200 106,786 112,800 6,014 5.3% Expansion Reserve 2,775,000 693,800 693,800 0.0% Betterment Reserve 1,435,000 358,800 358,800 0.0% Replacement Reserve 6,965,000 1,741,300 1,741,300 0.0% Transfer to Sewer General Fund 390,500 97,600 97,600 0.0% Transfer to General Fund Reserve 1,750,000 437,500 437,500 0.0% Total Expenses $76,993,900 $20,857,361 $21,110,085 $252,724 1.2% EXCESS REVENUES(EXPENSE)$$398 $(73,585)$73,983 F:/MORPT/FS2011-0910 10/25/2010 4:35 PM OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW SEPTEMBER 30,2010 INVESTMENT OVERVIEW &MARKET STATUS: The federal funds rate has remained constant now for over 20-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 21,2010. They went on to say:"The Committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels ofthe federal funds rate for an extended period." Despite the large drop in available interest rates,the District's overall effective rate of return at September 30th was 1.13 %,which was an increase of 1 basis point (0.01 %)from the prior month.At the same time the LAIF return on deposits has dropped slightly over the last several months,reaching an average effective yield of0.50%for the month ofSeptember 2010.Based on our success at maintaining a competitive rate ofreturn 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 30,2010 Investment 8.01:Treasury Securities 8.02:Local Agency Investment Fund (Operations) 8.02:Local Agency Investment Fund (Bonds) 8.03:Federal Agency Issues 8.04:Certificates ofDeposit 8.05:Short-Term Commercial Notes 8.06:Medium-Term Commercial Debt 8.07:Money Market Mutual Funds 8.08:San Diego County Pool 12.0:Maximum Single Financial Institution State Limit 100% $40 Million 100% 100% 30% 25% 30% 20% 100% 100% Otar Limit 100% $40 Million 100% 100% 15% 15% 15% 15% 100% 50% Otar Actual o $7.41 Million 3.89% 63.49% 2.97% o 3.86% o 16.34% 2.28% Target:Meet orExceed 100%ofLAlF Performance Measure F·12 Return on Investment J!Ici.Ecoc..:::I~ 1.80 1.60 1.40 1.20 1.00 0.80 -- 0.60 0.40 0.20 0.00 Oct Nov Jan FYlO FYlO FYIO 0_65 0_61 0.56 155 154 136 0.90 0_93 0_80 Month May June July I Aug Sep FYlO FY10 FYII FYII FYll 0_56 053 0.56 0.53 051 050 051 L02 U8 L08 U4 U2 U3 LI3 0.46 0.65 0.52 0_61 0_61 0_63 0_62 ~LAIF .OtayL__•... . _ CDifference Otay Water District Investment Portfolio:09/30/10 $5,438,170 5.250/0 $69,737,000 67.35% $28,365,265 27.40% o Banks (Passbook/Checking/CD).Pools (LAIF &County)o AgencIes &Corporate Notes OTAY Portfolio Management Portfolio Summary September 30,2010 Investments Corporate Notes FederalAgencyIssues-Callable Certificates ofDeposit -Bank local AgencyInvestment Fund (LAIF) San Diego CountyPool Investments Cash Par Market Book %of Days to YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv. 4,000,000.00 4,030,260.00 4,005,927.51 3.96 878 68 1.973 2.000 65,737,000.00 65,930,539.72 65,747,305.27 64.97 837 747 1.122 1.138 3,079,108.00 3,079,108.00 3,079,108.00 3.04 374 117 1.399 1.419 11,444,576.56 11,466,491.21 11,444,576.56 11.31 1 1 0.493 0.500 16,920,688.43 16,973,000.00 16,920,688.43 16.72 1 1 0.918 0.931 101,181,372.99 101,479,398.93 101,197,605.77 100.00%590 492 1.059 1.074 (not included in vield calculations) Total Cash and Investments Total Earnings September 30 2,359,062.22 103,540,435.21 Month Ending 2,359,062.22 103,838,461.15 Fiscal Year To Date 2,359,062.22 103,556,667.99 590 492 0.136 1.059 0.138 1.074 CurrentYear 98,513.44 312,770.01 Average Daily Balance 106,089,632.85 109,715,982.15 Effective Rate of Return 1.13%1.12% Ihereby certifythat the investments contained in this report are made in accordancewith the District Investment Policy Number27 adopted by the Board of Directors on September 6,2006.The market value information provide eractive Data Corporation.The investments provide sufficient liqUidity to meet the cash flow requirements ofthe District for the next six months of expenditures. Reporting period 09/01/2010-09/30/2010 Run Date:1012112010-17:01 Portfolio OTAY AP PM IPRF PM1)7.3.0 ReportVer.7.3.2 OTAY Portfolio Management Page 1 Portfolio Details -Investments September 30,2010 Average Purchase Stated YTM Daysto Maturity CUSIP Investment#Issuer Balance Date Par Value MarketValue Book Value Rate S&P 360 Maturity Date Corporate Notes 084664AF8 2094 Berkshire Hathaway Fin 03/10/2009 2,000,000.00 2,015,960.00 2,004,078.74 4.200 AAA 1.973 75 12/15/2010 36962G2S2 2044 General Electric Capital 11/16/2007 2,000,000.00 2,014,300.00 2,001,848.77 5.000 AAA 1.973 61 12101/2010--------- Subtotal and Average 4,007,173.51 4,000,000.00 4,030,260.00 4,005,927.51 1.973 68 Federal Agency Issues-Callable 31331GZ36 2155 Federal Farm Credit Bank 07/16/2010 4,000,000.00 4,002,520.00 4,011,113.69 1.550 AAA 1.374 657 07/19/2012 31331JYF4 2161 Federal Farm Credit Bank 08/19/2010 2,000,000.00 2,000,620.00 2,000,000.00 0.900 AAA 0.888 872 02119/2013 31331JZV8 2164 Federal Farm Credit Bank 09/03/2010 2,000,000.00 2,001,260.00 2,000,000.00 0.950 AAA 0.937 945 05/03/2013 3133XXRW9 2128 Federal Home Loan Bank 03/29/2010 2,000,000.00 2,009,380.00 2,000,000.00 1.250 AAA 1.233 637 06/29/2012 3133XYNSO 2145 Federal Home Loan Bank 06/10/2010 2,000,000.00 2,010,620.00 2,000,000.00 1.280 AAA 1.262 801 12110/2012 3133XYSH9 2147 Federal Home Loan Bank 06/21/2010 2,000,000.00 2,011,260.00 2,000,000.00 1.125 AAA 1.110 721 09/21/2012 3133XYXR1 2150 Federal Home Loan Bank 07/14/2010 2,000,000.00 2,000,620.00 2,000,000.00 1.250 AAA 1.233 836 01/14/2013 313370NF1 2160 Federal Home Loan Bank 08/20/2010 2,000,000.00 2,000,620.00 2,000,000.00 0.800 AAA 0.789 781 11/20/2012 313370P77 2162 Federal Home Loan Bank 08/25/2010 2,000,000.00 2,002,500.00 2,000,000.00 0.850 AAA 0.838 878 02125/2013 313370UP1 2165 Federal Home Loan Bank 09/13/2010 2,000,000.00 2,001,880.00 2,000,000.00 0.875 AAA 0.863 894 03/13/2013 313370VGO 2166 Federal Home Loan Bank 09/21/2010 2,000,000.00 2,000,620.00 2,000,000.00 0.800 AAA 0.789 721 09/21/2012 3134G1DE1 2140 Federal Home Loan Mortgage 05/19/2010 2,000,000.00 2,003,060.00 2,000,000.00 1.650 AAA 1.627 780 11/19/2012 3137EACK3 2146 Federal Home Loan Mortgage 05/28/2010 2,000,000.00 2,023,120.00 1,999,191.58 1.147 AAA 1.154 665 07/27/2012 3137EACK3A 2148 Federal Home Loan Mortgage 05/27/2010 1,030,000.00 1,041,906.80 1,030,000.00 1.125 AAA 1.109 665 07/27/2012 3137EACK3B 2149 Federal Home Loan Mortgage 05/27/2010 2,707,000.00 2,738,292.92 2,707,000.00 1.125 AAA 1.109 665 07/27/2012 3134G1 KZ6 2151 Federal Home Loan Mortgage 07/20/2010 2,000,000.00 2,003,140.00 2,000,000.00 1.000 AAA 0.986 658 07/20/2012 3134G1MD3 2153 Federal Home Loan Mortgage 07/2212010 2,000,000.00 2,008,140.00 2,000,000.00 1.100 AAA 1.085 294 07/2212011 3134G1PK4 2158 Federal Home Loan Mortgage 08/11/2010 2,000,000.00 2,007,820.00 2,000,000.00 1.000 AAA 0.986 864 02/11/2013 3134G1TU8 2167 Federal Home Loan Mortgage 09/28/2010 2,000,000.00 2,003,180.00 2,000,000.00 0.800 0.789 728 09/28/2012 3134G1UR3 2169 Federal Home Loan Mortgage 09/28/2010 2,000,000.00 2,003,080.00 2,000,000.00 0.900 0.888 909 03/28/2013 3136FJR45 2118 Federal National Mortage Assoc 01/25/2010 2,000,000.00 2,003,760.00 2,000,000.00 1.250 AAA 1.233 847 01/25/2013 3136FMFRO 2127 Federal National MortageAssoc 04/05/2010 2,000,000.00 2,010,000.00 2,000,000.00 1.500 AAA 1.479 735 10/05/2012 3136FMJF2 2129 Federal National Mortage Assoc 04/14/2010 2,000,000.00 2,005,620.00 2,000,000.00 1.250 AAA 1.233 591 05/14/2012 3136FMPB4 2132 Federal National Mortage Assoc 04/29/2010 2,000,000.00 2,010,000.00 2,000,000.00 1.480 AAA 1.460 759 10/29/2012 31398AQ47 2135 Federal National MortageAssoc 05/05/2010 2,000,000.00 2,002,500.00 2,000,000.00 1.600 AAA 1.578 766 11/05/2012 3136FMRH9 2136 Federal National MortageAssoc 04/29/2010 2,000,000.00 2,011,880.00 2,000,000.00 1.550 1.529 759 10/29/2012 3136FMRG1 2137 Federal National MortageAssoc 05/10/2010 2,000,000.00 2,001,880.00 2,000,000.00 1.300 AAA 1.282 587 05/10/2012 31398AW65 2152 Federal National MortageAssoc 07/27/2010 2,000,000.00 2,000,620.00 2,000,000.00 1.000 AAA 0.986 665 07/27/2012 3136FMX82 2154 Federal National MortageAssoc 07/26/2010 2,000,000.00 2,003,120.00 2,000,000.00 1.000 AAA 0.986 756 10/26/2012 3136FM4N1 2157 Federal National MortageAssoc 08/11/2010 2,000,000.00 2,003,760.00 2,000,000.00 1.000 AAA 0.986 864 02111/2013 Portfolio OTAY AP Run Date:10121/2010 -17:15 PM (PRF_PM2)7.3.0 Report VeL 7.3.2 OTAY Portfolio Management Portfolio Details -Investments September 30,2010 Page 2 Average Purchase Stated YTM Days to Maturity CUSIP Investment#Issuer Balance Date Par Value MarketValue BookValue Rate S&P 360 Maturity Date Federal Agency Issues-Callable 3136FM6A7 2159 Federal National MortageAssoc 08/19/2010 2,000,000.00 2,001,260.00 2,000,000.00 1.000 AAA 0.986 780 11/19/2012 3136FPHU4 2168 Federal National Mortage Assoc 09/21/2010 2,000,000.00 2,002,500.00 2,000,000.00 0.875 AAA 0.863 902 03/21/2013--------- Subtotal and Average 63,039,202.76 65,737,000.00 65,930,539.72 65,747,305.27 1.122 747 Certificates ofDeposit -Bank 2050003183-4 2121 California Bank &Trust 01/22/2010 79,108.00 79,108.00 79,108.00 1.380 1.380 478 01/22/2012 1008995288 2119 Neighborhood National Bank 12/10/2009 1,000,000.00 1,000,000.00 1,000,000.00 1.400 1.400 69 12109/2010 1006200563-2 2126 Neighborhood National Bank 02104/2010 2,000,000.00 2,000,000.00 2,000,000.00 1.400 1.400 126 02/04/2011--------- SubtotalandAverage 3,079,108.00 3,079,108.00 3,079,108.00 3,079,108.00 1.399 117 Local Agency Investment Fund (LAIF) LAIF 9001 STATE OF CALIFORNIA 07/01/2004 7,413,399.46 7,427,595.01 7,413,399.46 0.500 0.493 LAIF BABS 2010 9012 STATE OF CALIFORNIA 04/21/2010 4,031,177.10 4,038,896.20 4,031,177.10 0.500 0.493--------- Subtotaland Average 14,129,576.56 11,444,576.56 11,466,491.21 11,444,576.56 0.493 San Diego County Pool SO COUNTY POOL 9007 San Diego County 07/01/2004 16,920,688.43 16,973,000.00 16,920,688.43 0.931 0.918--------- Subtotal and Average 18,587,355.10 16,920,688.43 16,973,000.00 16,920,688.43 0.918 Total andAverage 106,089,632.85 101,181,372.99 101,479,398.93 101,197,605.77 1.059 492 Run Date:10/21/2010-17:15 Portfolio OTAY AP PM (PRF_PM2)73.0 OTAY Portfolio Management Portfolio Details -Cash September 30,2010 Page 3 Average Purchase Stated YTM Daysto CUSIP Investment#Issuer Balance Date ParValue Market Value BookValue Rate S&P 360 Maturity Union Bank UNION MONEY 9002 STATE OF CALIFORNIA 07/01/2004 24,603.93 24,603.93 24,603.93 0.050 0.049 PETTY CASH 9003 STATE OF CALIFORNIA 07/01/2004 2,800.00 2,800.00 2,800.00 0.000 UNION OPERATING 9004 STATE OF CALIFORNIA 07/01/2004 2,305,513.37 2,305,513.37 2,305,513.37 0.141 0.139 PAYROLL 9005 STATE OF CALIFORNIA 07/01/2004 24,977.26 24,977.26 24,977.26 0.000 RESERVE-10 COPS 9010 STATE OF CALIFORNIA 04/20/2010 690.76 690.76 690.76 0.001 0.001 RESERVE-10 BABS 9011 STATE OF CALIFORNIA 04/20/2010 425.01 425.01 425.01 0.001 0.001 UBNA-2010 BOND 9013 STATE OF CALIFORNIA 04/20/2010 51.89 51.89 51.89 0.147 0.145 Average Balance 0.00 Total Cash and Investments 106,089,632.85 103,540,435.21 103,838,461.15 103,556,667.99 1.059 492 Run Date:10/21/2010-17:15 Portfolio OTAY AP PM (PRF]M2)7.3.0 CUSIP Investment#Issuer Percent of Portfolio OTAY Activity Report Sorted By Issuer July 1,2010 -September 30,2010 ParValue Beginning Current Transaction Balance Rate Date Purchases or Deposits ParValue-"-,----,--_.-.---._---.__.",.. Redemptions or Withdrawals Ending Balance Issuer:Berkshire Hathaway Fin Corporate Notes Subtotal and Balance IssuerSubtotal Issuer:STATE OF CALIFORNIA 1.932% 2,000,000.00 2,000,000.00 0.00 0.00 2,000,000.00 2,000,000.00 Subtotal and Balance IssuerSubtotal 13.332% Local Agency Investment Fund (LAIF) LAIF 9001 STATE OF CALIFORNIA LAIF BABS 2010 9012 STATE OF CALIFORNIA Union Bank UNION MONEY 9002 UNION OPERATING 9004 PAYROLL 9005 UBNA-2010 BOND 9013 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA Subtotaland Balance 0.050 68,763,913.81 68,749,319.87 0.141 2,307,419.16 1,046,617.78 320,925.04 320,925.04 0.147 10,000,000.00 10,000,000.00 1,083,666.90 81,392,258.01 80,116,862.69 0.500 21,658,449.75 32,750,000.00 0.500 31,177.10 12,000,000.00 34,504,949.71 21,689,626.85 44,750,000.00 35,588,616.61 103,081,884.86 124,866,862.69 2,359,062.22 11,444,576.56 13,803,638.78 Issuer:California Bank &Trust Certificates of Deposit -Bank Subtotal and Balance 79,108.00 79,108.00 IssuerSubtotal Issuer:Federal Farm Credit Bank 0.076%79,108.00 0.00 0.00 79,108.00 Federal Agency Issues-Callable 31331GZ36 2155 Run Date:10/21/2010 -17:55 Federal Farm Credit Bank 1.550 07/16/2010 4,000,000.00 0.00 Portfolio OTAY AP DA(PRF_DA)7.2.0 Report Ver.7.3.2 OTAY Activity Report Page 2 July 1,2010 -September 30,2010 ParValue ParValue Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment#Issuer ofPortfolio Balance Rate Date Deposits Withdrawals Balance Issuer:Federal Farm Credit Bank Federal Agency Issues-Callable 31331JYF4 2161 Federal Farm Credit Bank 0.900 08/19/2010 2,000,000.00 0.00 31331JZV8 2164 Federal Farm Credit Bank 0.950 09/03/2010 2,000,000.00 0.00 Subtotal and Balance 0.00 8,000,000.00 0.00 8,000,000.00 IssuerSubtotal 7.726%0.00 8,000,000.00 0.00 8,000,000.00 Issuer:Federal Home Loan Bank Federal Agency Issues-Callable 3133XXK22 2124 Federal Home Loan Bank 1.250 07/08/2010 0.00 2,000,000.00 3133XY2C8 2130 Federal Home Loan Bank 1.800 07/26/2010 0.00 2,000,000.00 3133XY5H4 2131 Federal Home Loan Bank 1.450 07/30/2010 0.00 2,000,000.00 3133XTAS4 2133 Federal Home Loan Bank 1.600 08/06/2010 0.00 2,000,000.00 3133XY004 2138 Federal Home Loan Bank 1.700 08/13/2010 0.00 2,000,000.00 3133XYCTO 2139 Federal Home Loan Bank 1.500 08/13/2010 0.00 2,000,000.00 3133XYFP5 2142 Federal Home Loan Bank 1.020 08/25/2010 0.00 2,000,000.00 3133XYXR1 2150 Federal Home Loan Bank 1.250 07/14/2010 2,000,000.00 0.00 313370B09 2156 Federal Home Loan Bank 0.800 07/27/2010 2,000,000.00 0.00 313370B09 2156 Federal Home Loan Bank 08/27/2010 0.00 2,000,000.00 313370NF1 2160 Federal Home Loan Bank 0.800 08/20/2010 2,000,000.00 0.00 313370P77 2162 Federal Home Loan Bank 0.850 08/25/2010 2,000,000.00 0.00 313370JRO 2163 Federal Home Loan Bank 0.850 08/27/2010 2,875,000.00 0.00 313370JRO 2163 Federal Home Loan Bank 09/27/2010 0.00 2,875,000.00 313370UP1 2165 Federal Home Loan Bank 0.875 09/13/2010 2,000,000.00 0.00 313370VGO 2166 Federal Home Loan Bank 0.800 09/21/2010 2,000,000.00 0.00 Subtotal and Balance 20,000,000.00 14,875,000.00 18,875,000.00 16,000,000.00 IssuerSubtotal 15.453%20,000,000.00 14,875,000.00 18,875,000.00 16,000,000.00 Issuer:Federal Home Loan Mortgage Federal Agency Issues-Callable 3134G1AW4 2134 Federal Home Loan Mortgage 1.300 08/10/2010 0.00 2,000,000.00 3134G1EH3 2144 Federal Home Loan Mortgage 1.300 09/08/2010 0.00 2,000,000.00 3134G1KZ6 2151 Federal Home Loan Mortgage 1.000 07/20/2010 2,000,000.00 0.00 Portfolio OTAY AP Run Date:10/2112010 -17:55 DA(PRF_DA)7.2.0 Report Ver.7.3.2 DTAY Activity Report July 1,2010 -September30,2010 Page 3 CUSIP Investment#Issuer Percent ofPortfolio Par Value Beginning Balance Current Transaction Rate Date Purchases or Deposits ParValue Redemptions or Withdrawals Ending Balance Issuer:Federal Home Loan Mortgage Federal Agency Issues-Callable 1.100 07/22/2010 2,000,000.00 0.00 1.000 08/11/2010 2,000,000.00 0.00 0.800 09/28/2010 2,000,000.00 0.00 0.900 09/28/2010 2,000,000.00 0.00 11,737,000.00 10,000,000.00 4,000,000.00 17,737,000.00 11,737,000.00 10,000,000.00 4,000,000.00 17,737,000.0017.131%Issuer Subtotal Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage _ Subtotal and Balance 2153 2158 2167 2169 3134G1MD3 3134G1PK4 3134G1TU8 3134G1UR3 Issuer:Federal National Mortage Assoc 1.500 07/20/2010 0.00 2,000,000.00 1.500 08/16/2010 0.00 2,000,000.00 1.500 09/24/2010 0.00 2,000,000.00 1.400 08/25/2010 0.00 2,000,000.00 1.000 07/27/2010 2,000,000.00 0.00 1.000 07/26/2010 2,000,000.00 0.00 1.000 08/11/2010 2,000,000.00 0.00 1.000 08/19/2010 2,000,000.00 0.00 0.875 09/21/2010 2,000,000.00 0.00 22,000,000.00 10,000,000.00 8,000,000.00 24,000,000.00 22,000,000.00 10,000,000.00 8,000,000.00 24,000,000.0023.179% Federal National MortageAssoc Federal National MortageAssoc Federal National MortageAssoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National MortageAssoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Ass_o_c_------ Subtotal and Balance Federal Agency Issues-Callable 31398AC91 2117 3136FJ4T5 2120 31398AH88 2123 31398AS78 2143 31398AW65 2152 3136FMX82 2154 3136FM4N1 2157 3136FM6A7 2159 3136FPHU4 2168 IssuerSubtotal Issuer:General Electric Capital Corporate Notes Subtotal and Balance 2,000,000.00 2,000,000.00 Issuer Subtotal 1.932%2,000,000.00 0.00 0.00 2,000,000.00 Issuer:Neighborhood National Bank Certificates of Deposit -Bank Subtotal and Balance 3,000,000.00 3,000,000.00 Run Date:1012112010 -17:55 Portfolio DTAY AP DA (PRF_DA)7.2.0 ReportVer.7.3.2 OTAY Activity Report July 1,2010 -September 30,2010 Page 4 CUSIP Investment#Issuer IssuerSubtotal Percent ofPortfolio 2.897% Par Value Beginning Balance 3,000,000.00 Current Transaction Rate Date Purchases or Deposits 0.00 ParValue Redemptions or Withdrawals 0.00 Ending Balance 3,000,000.00 Issuer:San Diego County San Diego County Pool SO COUNTYPOOL 9007 Run Date:10/21/2010-17:55 San Diego County Subtotal and Balance IssuerSubtotal 16.342% Total 100.000% 18,878,241.73 18,878,241.73 115,282,966.34 0.931 42,446.70 42,446.70 42,446.70 145,999,331.56 2,000,000.00 2,000,000.00 2,000,000.00 157,741,862.69 16,920,688.43 16,920,688.43 103,540,435.21 Portfolio OTAY AP DA(PRF_DA)7.2.0 Report Ver.7.3.2 OTAY GAS8 31 Compliance Detail Sorted by Fund -Fund July 1,2010 -September 30,2010 Adjustment in Value Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value ofPrincipal to Principal ofPrincipal Adjustment MarketValue Invested Value Fund:Treasury Fund LAIF 9001 99 Fair Value 18,535,367.70 0.00 21,658,449.75 32,750,000.00 0.00 -16,222.44 7,427,595.01 UNION MONEY 9002 99 Amortized 10,009.99 0.00 68,763,913.81 68,749,319.87 0.00 0.00 24,603.93 PEnYCASH 9003 99 Amortized 2,800.00 0.00 0.00 0.00 0.00 0.00 2,800.00 UNION OPERATING 9004 99 Amortized 1,044,711.99 0.00 2,307,419.16 1,046,617.78 0.00 0.00 2,305,513.37 PAYROLL 9005 99 Amortized 24,977.26 0.00 320,925.04 320,925.04 0.00 0.00 24,977.26 SD COUNTY POOL 9007 99 Fair Value 18,851,000.00 0.00 42,446.70 2,000,000.00 0.00 79,553.30 16,973,000.00 36962G2S2 2044 99 Fair Value 12101/2010 2,032,000.00 0.00 0.00 0.00 0.00 -17,700.00 2,014,300.00 084664AF8 2094 99 Fair Value 12115/2010 2,030,740.00 0.00 0.00 0.00 0.00 -14,780.00 2,015,960.00 31398AC91 2117 99 Fair Value 01/20/2012 2,000,620.00 0.00 0.00 2,000,000.00 0.00 -620.00 0.00 3136FJR45 2118 99 Fair Value 01/25/2013 2,005,620.00 0.00 0.00 0.00 0.00 -1,860.00 2,003,760.00 1008995288 2119 99 Amortized 12109/2010 1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 3136FJ4T5 2120 99 FairValue 08/16/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 2050003183-4 2121 99 Amortized 01/2212012 79,108.00 0.00 0.00 0.00 0.00 0.00 79,108.00 31398AH88 2123 99 Fair Value 09/24/2012 2,004,380.00 0.00 0.00 2,000,000.00 0.00 -4,380.00 0.00 3133XXK22 2124 99 FairValue 06/25/2012 2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 1006200563-2 2126 99 Amortized 02104/2011 2,000,000.00 0.00 0.00 0.00 0.00 0.00 2,000,000.00 3136FMFRO 2127 99 FairValue 10105/2012 2,012,500.00 0.00 0.00 0.00 0.00 -2,500.00 2,010,000.00 3133XXRW9 2128 99 FairValue 06/29/2012 2,012,500.00 0.00 0.00 0.00 0.00 -3,120.00 2,009,380.00 3136FMJF2 2129 99 FairValue 05/14/2012 2,009,380.00 0.00 0.00 0.00 0.00 -3,760.00 2,005,620.00 3133XY2C8 2130 99 FairValue 01/29/2013 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3133XY5H4 2131 99 FairValue 07/30/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3136FMPB4 2132 99 Fair Value 10/29/2012 2,010,620.00 0.00 0.00 0.00 0.00 -620.00 2,010,000.00 3134G1AW4 2134 99 Fair Value 05/10/2012 2,001,920.00 0.00 0.00 2,000,000.00 0.00 -1,920.00 0.00 31398AQ47 2135 99 Fair Value 11/05/2012 2,007,500.00 0.00 0.00 0.00 0.00 -5,000.00 2,002,500.00 3136FMRH9 2136 99 Fair Value 10/29/2012 2,014,380.00 0.00 0.00 0.00 0.00 -2,500.00 2,011,880.00 3136FMRG1 2137 99 Fair Value 05/10/2012 2,005,620.00 0.00 0.00 0.00 0.00 -3,740.00 2,001,880.00 3133XYDD4 2138 99 Fair Value 11/13/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 3133XYCTO 2139 99 Fair Value 08/13/2012 2,002,500.00 0.00 0.00 2,000,000.00 0.00 -2,500.00 0.00 3134G1DE1 2140 99 Fair Value 11/19/2012 2,008,000.00 0.00 0.00 0.00 0.00 -4,940.00 2,003,060.00 RESERVE-10 COPS 9010 99 Amortized 690.76 0.00 0.00 0.00 0.00 0.00 690.76 Run Date:10/21/2010 -17:27 Portfolio OTAY AP GO (PRF_GO)7.1.1 ReportVer.7.3.2 OTAY GASS 31 Compliance Detail Page 2 Sorted by Fund -Fund Adjustment in Value Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value ofPrincipal to Principal ofPrincipal Adjustment MarketValue Invested Value Fund:Treasury Fund RESERVE-10 BABS 9011 99 Amortized 425.01 0.00 0.00 0.00 0.00 0.00 425.01 3133XYFP5 2142 99 Fair Value 11/25/2011 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 31398AS78 2143 99 FairValue 05/25/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 3134G1EH3 2144 99 FairValue 06/08/2012 2,002,540.00 0.00 0.00 2,000,000.00 0.00 -2,540.00 0.00 LAIF BABS 2010 9012 99 FairValue 16,026,300.42 0.00 31,177.10 12,000,000.00 0.00 -18,581.32 4,038,896.20 UBNA-2010 BOND 9013 99 Amortized 51.89 0.00 10,000,000.00 10,000,000.00 0.00 0.00 51.89 3133XYNSO 2145 99 FairValue 12/10/2012 2,009,380.00 0.00 0.00 0.00 0.00 1,240.00 2,010,620.00 3137EACK3 2146 99 Fair Value 07/27/2012 2,014,380.00 0.00 0.00 0.00 0.00 8,740.00 2,023,120.00 3133XYSH9 2147 99 Fair Value 09/21/2012 2,010,000.00 0.00 0.00 0.00 0.00 1,260.00 2,011,260.00 3137EACK3A 2148 99 Fair Value 07/27/2012 1,037,405.70 0.00 0.00 0.00 0.00 4,501.10 1,041,906.80 3137EACK3B 2149 99 Fair Value 07/27/2012 2,726,463.33 0.00 0.00 0.00 0.00 11,829.59 2,738,292.92 3133XYXR1 2150 99 Fair Value 01/14/2013 0.00 2,000,000.00 0.00 0.00 0.00 620.00 2,000,620.00 3134G1KZ6 2151 99 Fair Value 07/20/2012 0.00 2,000,000.00 0.00 0.00 0.00 3,140.00 2,003,140.00 31398AW65 2152 99 Fair Value 07/27/2012 0.00 2,000,000.00 0.00 0.00 0.00 620.00 2,000,620.00 3134G1M03 2153 99 Fair Value 07/2212011 0.00 2,000,000.00 0.00 0.00 0.00 8,140.00 2,008,140.00 3136FMX82 2154 99 Fair Value 10/26/2012 0.00 2,000,000.00 0.00 0.00 0.00 3,120.00 2,003,120.00 31331GZ36 2155 99 Fair Value 07/19/2012 0.00 4,012,400.00 0.00 0.00 0.00 -9,880.00 4,002,520.00 313370B09 2156 99 FairValue 04/27/2012 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 3136FM4N1 2157 99 Fair Value 02/11/2013 0.00 2,000,000.00 0.00 0.00 0.00 3,760.00 2,003,760.00 3134G1PK4 2158 99 Fair Value 02111/2013 0.00 2,000,000.00 0.00 0.00 0.00 7,820.00 2,007,820.00 3136FM6A7 2159 99 FairValue 11/19/2012 0.00 2,000,000.00 0.00 0.00 0.00 1,260.00 2,001,260.00 313370NF1 2160 99 FairValue 11/20/2012 0.00 2,000,000.00 0.00 0.00 0.00 620.00 2,000,620.00 31331JYF4 2161 99 FairValue 02/19/2013 0.00 2,000,000.00 0.00 0.00 0.00 620.00 2,000,620.00 313370P77 2162 99 FairValue 02125/2013 0.00 2,000,000.00 0.00 0.00 0.00 2,500.00 2,002,500.00 313370JRO 2163 99 FairValue 08/27/2012 0.00 2,875,000.00 0.00 2,875,000.00 0.00 0.00 0.00 31331JZV8 2164 99 FairValue 05/03/2013 0.00 2,000,000.00 0.00 0.00 0.00 1,260.00 2,001,260.00 313370UP1 2165 99 FairValue 03/13/2013 0.00 2,000,000.00 0.00 0.00 0.00 1,880.00 2,001,880.00 313370VGO 2166 99 Fair Value 09/21/2012 0.00 2,000,000.00 0.00 0.00 0.00 620.00 2,000,620.00 3134G1TU8 2167 99 Fair Value 09/28/2012 0.00 2,000,000.00 0.00 0.00 0.00 3,180.00 2,003,180.00 3136FPHU4 2168 99 Fair Value 03/21/2013 0.00 2,000,000.00 0.00 0.00 0.00 2,500.00 2,002,500.00 3134G1UR3 2169 99 Fair Value 03/28/2013 0.00 2,000,000.00 0.00 0.00 0.00 3,080.00 2,003,080.00 3133XTAS4 2133 99 Fair Value 11/06/2012 2,001,880.00 0.00 0.00 2,000,000.00 0.00 -1,880.00 0.00 Subtotal 115,548,292.05 42,887,400.00 103,124,331.56 157,741,862.69 0.00 20,300.23 103,838,461.15 Total 115,548,292.05 42,887,400.00 103,124,331.56 157,741,862.69 0.00 20,300.23 103,838,461.15 Portfolio OTAY AP Run Date:10/2112010 -17:27 GO(PRF_GO)7.1.1 ReportVer.7.3.2 OTAY Duration Report Sorted by Investment Type -Investment Type Through 09/30/2010 Security ID 36962G2S2 084664AF8 3134G1KZ6 3134G1UR3 3137EACK3 3134G1DE1 3134G1TU8 3137EACK3B 3137EACK3A 3134G1PK4 3134G1MD3 3136FM4N1 3136FM6A7 3136FMPB4 3136FMJF2 3136FPHU4 3136FMFRO 31398AW65 3136FMRG1 3136FMX82 3136FMRH9 3136FJR45 31398AQ47 313370UP1 3133XYSH9 3133XYXR1 313370NFl 313370P77 3133XXRW9 Investment # 2044 2094 2151 2169 2146 2140 2167 2149 2148 2158 2153 2157 2159 2132 2129 2168 2127 2152 2137 2154 2136 2118 2135 2165 2147 2150 2160 2162 2128 Fund 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 Issuer General Electric Capital Berkshire HathawayFin Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Federal National MortageAssoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National MortageAssoc Federal National Mortage Assoc Federal National MortageAssoc Federal National MortageAssoc Federal National MortageAssoc Federal National MortageAssoc Federal National MortageAssoc Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Investment Class Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Fair Book Value 2,001,848.77 2,004,078.74 2,000,000.00 2,000,000.00 1,999,191.58 2,000,000.00 2,000,000.00 2,707,000.00 1,030,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 Par Value 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,707,000.00 1,030,000.00 2,000,000.00 2,000,000.00 2,DOO,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 Market Current Value Rate 2,014,300.00 5.000000 2,015,960.00 4.200000 2,003,140.00 1.000000 2,003,080.00 .9000000 2,023,120.00 1.147196 2,003,060.00 1.650000 2,003,180.00 .8000000 2,738,292.92 1.125000 1,041,906.80 1.125000 2,007,820.00 1.000000 2,008,140.00 1.100000 2,003,760.00 1.000000 2,001,260.00 1.000000 2,010,000.00 1.480000 2,005,620.00 1.250000 2,002,500.00 .8750000 2,010,000.00 1.500000 2,000,620.00 1.000000 2,001,880.00 1.300000 2,003,120.00 1.000140 2,011,880.00 1.550000 2,003,760.00 1.250000 2,002,500.00 1.600000 2,001,880.00 .8750000 2,011,260.00 1.125178 2,000,620.00 1.250000 2,000,620.00 .8000000 2,002,500.00 .8500000 2,009,380.00 1.250000 YTM 360 1.973 1.973 0.986 0.888 1.154 1.627 0.789 1.109 1.109 0.986 1.085 0.986 0.986 1.460 1.233 0.863 1.479 0.986 1.282 0.986 1.529 1.233 1.578 0.863 1.110 1.233 0.789 .0.838 1.233 Current Yield 3.545 2.583 0.912 0.837 0.509 1.577 0.719 0.487 0.487 0.833 0.595 0.919 0.970 1.236 1.075 0.824 1.248 0.983 1.241 0.924 1.260 1.168 1.539 0.836 0.837 1.236 0.785 0.797 0.978 Maturityl Modified Call Date Duration 12101/2010 0.167 12115/2010 0.205 07/20/2012 1.779 03/28/2013 2.459 07/27/2012 1.797 11/19/2012 2.076 09/28/2012 1.972 07/27/2012 1.797 07/27/2012 1.797 02/11/2013 2.326 07/22/2011 0.803 02/11/2013 2.325 11/19/2012 2.103 10/29/2012 2.028 05/14/2012 1.589 03/21/2013 2.440 10105/2012 1.494 07/27/2012 1.798 0511012012 1.579 10/26/2012 2.040 10/29/2012 2.026 01/25/2013 2.252 11/05/2012 2.039 03/13/2013 2.418 09/21/2012 1.942 0111412013 2.241 11/20/2012 2.112 02125/2013 2.369 06/29/2012 1.713 Run Date:10/21/2010 -17:28 Page 1 Portfolio OTAY AP DU (PRF_DU)7.1.1 Report Ver.7.3.2 OTAY Duration Report Sorted by Investment Type -InvestmentType Through 09/30/2010 Investment Book Par Market Current YTM Current Maturityl Modified Security 10 Investment#Fund Issuer Class Value Value Value Rate 360 Yield Call Date Duration 313370VGO 2166 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,000,620.00 .8000000 0.789 0.784 09/21/2012 1.952 3133XYNSO 2145 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,010,620.00 1.280000 1.262 1.035 12/10/2012 2.149 31331JYF4 2161 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 2,000,620.00 .9000000 0.888 0.887 02/19/2013 2.351 31331GZ36 2155 99 Federal Farm Credit Bank Fair 4,011,113.69 4,000,000.00 4,002,520.00 1.550000 1.374 1.515 07/19/2012 1.764 31331JZV8 2164 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 2,001,260.00 .9500950 0.937 0.925 05/03/2013 2.549 2050003183-4 2121 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 1.380000 1.380 1.380 01/2212012 1.296t 1008995288 2119 99 Neighborhood National Bank Amort 1,000,000.00 1,000,000.00 1,000,000.00 1.400000 1.400 1.400 12109/2010 0.187t 1006200563-2 2126 99 Neighborhood National Bank Amort 2,000,000.00 2,000,000.00 2,000,000.00 1.400000 1.400 1.400 02/04/2011 0.339t LAIF 9001 99 STATE OF CALIFORNIA Fair 7,413,399.46 7,413,399.46 7,427,595.01 .5000000 0.493 0.500 0.000 LAIF COPS07 9009 99 STATE OF CALIFORNIA Fair 0.00 0.00 0.00 1.530000 1.509 1.530 0.000 LAIF BABS 2010 9012 99 STATE OF CALIFORNIA Fair 4,031,177.10 4,031,177.10 4,038,896.20 .5000000 0.493 0.500 0.000 SO COUNTY 9007 99 San Diego County Fair 16,920,688.43 16,920,688.43 16,973,000.00 .9310000 0.918 0.931 0.000 Report Total 101,197,605.77 101,181,372.99 101,479,398.93 1.017 1.313t t =Duration can not be calculated on these investments due to incomplete Market price data. Run Date',10/2112010-17:28 Page 2 Portfolio OTAY AP DU (PRF_DU)7.1.1 Report Ver.7.3,2 5TAFF REPORT TYPE MEETING SUBMITTED BY lar Board Sean Prendergast, MEETING DATE: WO.lG.F.NO November 3,2010 DIV.NO. Supervisor,Payroll &AJ? APPROVED BY Joseph Beachem,Chief Financial Officer (Cilief) APPROVED 13Y Cerman fI,lvarez,]1,ssLstant General Manager (Assl.GM) SUBJECT PURPOSE: Accounts Payable Demand List Attached is the ist of demands for the Board's information. FISCAL IMPACT: SPECIAL DIST RISK MGMT AUTH -INSURANCE PREMIUM STATE BOAED OF EQUALIZATION -SALES USE TAX CALPERS -OTHER POST EMPLOYMENT BENEFITS r TREASURER -WATER DELIVERIES DE !\HEJ\LTH SYS'I'E[v1.S -DENT1\L &COBEA CLIUMS LANDESBANK -CERTIFICATES OF PARTICIPATION SUMMARY CHF,Cl<S (22575 -20261/]8) velD CHECl<S (2) TOTAL CHECI<S SAN DIEGO COUNTY WATER WATER DELIVER!ES NET DEMANDS $4,004,290,57 ($74,949.18) $3,929,341.39 $28,900.00 $1,877.35 $16,773.59 $28,343.63 $3,187,127.40 $195,701.02 $799.00 UNION BANK -PAYROLL TAXES WAGEWORKS -FLEXIBLE SPENDING ACCOUNT TOTAL CASH DISBURSEMENTS RECOMMENDED ACTION: ThaL the Board receive the attached list of demands. Jb l~tachment $295,923.74 $55,224.90 $7,740,012.02 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025862 10/13/10 10720 1060 TECHNOLOGY INC 1682 09/23/10 HP DRIVES 4,785.00 4,785.00 2025969 10/20/10 10720 1060 TECHNOLOGYINC 1649 09/24/10 TOUGHBOOKS 38,236.50 38,236.50 2025970 10/20/10 10133 9931 VIA DE LA AMISTAD 002504 10/18/10 W/O REFUND 00626-010300 3,228.50 002503 10/18/10 W/O REFUND 00626-010301 2,875.39 6,103.89 2025863 10/13/10 08488 ABLEFORCE INC 2423 10105/10 CONSULTING SERVICES 8,670.00 8,670.00 2026064 10/27/10 08488 ABLEFORCE INC 2438 10/19/10 CONSULTING SERVICES 8,585.00 8,585.00 2025799 10106/10 12174 AECOM TECHNICAL SERVICES INC 37042512 08/11/10 WELL PROJECT 37,472.29 37042520 08/11/10 ENGINEERING SERVICES 4,334.48 41,806.77 2026065 10/27/10 12174 AECOM TECHNICAL SERVICES INC 37048050 09/23/10 WELL PROJECT 608,136.65 37048073 09/23/10 ENGINEERING SERVICES 2,780.00 610,916.65 2026066 10/27/10 11462 AEGIS ENGINEERING MGMT INC 1011 10104/10 PLAN CHECKING 18,546.00 18,546.00 2025800 10106/10 11803 AEROTEK ENVIRONMENTAL OE00680082 09/16/10 TEMPORARYSERVICES 2,178.00 2,178.00 2025864 10/13/10 11803 AEROTEK ENVIRONMENTAL OE00681615 09/23/10 TEMPORARYSERVICES 1,497.38 1,497.38 2025971 10/20/10 11803 AEROTEK ENVIRONMENTAL OE00683164 09/30/10 TEMPORARYSERVICES 2,178.00 2,178.00 2026067 10/27/10 11803 AEROTEK ENVIRONMENTAL OE00684744 10107/10 TEMPORARY SERVICES 2,224.00 2,224.00 2025972 10/20/10 12083 AHERN RENTALS 8741369001 09/22/10 55FT BOOMLIFT 47,586.83 47,586.83 2025973 10/20/10 07732 AIRGAS SPECIALTY PRODUCTS INC 131171895 09/27/10 AQUA AMMONIA 2,171.07 131171894 09/27/10 AQUA AMMONIA 1,875.27 4,046.34 2025974 10/20/10 00132 AIRGAS WEST INC 103145753 09/30/10 BREATHING AIR 28.85 28.85 2025756 10106/10 12302 ALFREDO OLIVAS Ref002409064 10105/10 UB Refund Cst #0000157753 30.99 30.99 2025757 10106/10 12288 ALICE SMITH Ref002409050 10105/10 UB Refund Cst #0000122638 30.76 30.76 2025975 10/20/10 02362 ALLIED WASTE SERVICES #509 0509004123547 09/25/10 TRASH SERVICES 841.23 0509004125530 09/25/10 TRASH SERVICES TP 146.80 988.03 2025936 10/20/10 12340 ALMAFERNANDEZ Ref002409428 10/19/10 UB Refund Cst #0000162013 31.57 31.57 2025801 10106/10 01369 AMERICAN BACKFLOW INV16132 09/10/10 BACKFLOWS 3,313.83 3,313.83 2025758 10106/10 12314 AMERICAN EAGLE REAL ESTATE Ref002409076 10105/10 UB Refund Cst #0000162368 40.00 40.00 2025759 10106/10 12318 AMERICAN EAGLE REAL ESTATE Ref002409081 10105/10 UB Refund Cst#0000163316 5.23 5.23 Page 1 of20 _~·__~_"·,"_'_··______~___·___"__·~_c_,---_._---,-_._~.~-_.._-------.,.,--~O~"'~-_'._,__~·70.,-·=-·',_:_:~~-5-_---:'-;~~·,,·~·~-"'·"'·"''''~._-<x;l<'i!>/i;;<___ OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025802 10/06/10 02966 AMERICAN INDUSTRIAL SUPPLYINC 125186 09/15/10 ANTI -SEIZE COMPOUND 501.09 501.09 2025803 10/06/10 06166 AMERICAN MESSAGING L1109570KJ 10/01/10 PAGER SERVICES 135.54 135.54 2026068 10/27/10 00315 AMERICAN SOCIETY OF CIVIL 1041052631 10/21/10 MEMBERSHIP DUES 250.00 250.00 2025760 10/06/10 12325 ANN AMARAL Ref002409088 10/05/10 UB Refund Cst #0000169437 75.00 75.00 2026069 10/27/10 00002 ANSWER INC 3975 10/22/10 ANSWERING SERVICES 1,000.00 1,000.00 2025865 10/13/10 08967 ANTHEM BLUE CROSS EAP 40906 09/24/10 EMPLOYEE ASSISTANCE 365.70 365.70 2025976 10/20/10 08967 ANTHEM BLUE CROSS EAP 640871 06/01/10 EMPLOYEE ASSISTANCE 365.70 365.70 2025804 10/06/10 12329 API FUND FOR PAYROLL EDUCATION 002471 10/06/10 REGISTRATION FEES 845.00 845.00 2026070 10/27/10 03492 AQUA-METRIC SALES COMPANY 00347541N 10/04/10 SENSUS METERS 43,885.91 43,885.91 2026071 10/27/10 02651 ART'S TRENCH PLATE &35888 10/07/10 TRENCHING 2,790.00 2,790.00 2026072 10/27/10 03143 ASIAN BUSINESS ASSOCIATION 1335 03/12/10 1/4 PAGE AD 400.00 400.00 2025805 10106/10 03340 ASSOCIATION OF PUBLIC 4623 10/06/10 MEMBERSHIP RENEWAL 169.00 169.00 2025977 10/20/10 05758 AT&T 082164572809251C 09/25/10 INTERNET BANDWIDTH 1,976.64 1,976.64 2025978 10/20/10 05758 AT&T 61942256050910 09/20/10 PHONE SVC (INTERAGENCY WTR MTRCONN)30.67 30.67 2025979 10/20/10 07785 AT&T 000001669468 10/02/10 PHONE SERVICES 5,909.64 5,909.64 2025980 10/20/10 08330 AT&T INTERNET SERVICES 8547826250910 09/22/10 INTERNET BANDWIDTH 1,200.00 1,200.00 2025937 10/20/10 12363 ATLANTIC &PACIFIC REAL ESTATE Ref002409452 10/19/10 UB Refund Cst #0000139708 6.37 6.37 2025806 10/06/10 03543 AUDIO ASSOCIATES OF 9785 09/13/10 SERVICE LABOR 138.00 138.00 2025981 10/20/10 03543 AUDIO ASSOCIATES OF 9822 09/29/10 SERVICE LABOR 1,330.74 1,330.74 2025982 10/20/10 03526 BALDWIN COOKE 2562249 09/25/10 EXECUTIVE PLANNERS 138.04 138.04 2026073 10/27/10 03526 BALDWIN COOKE 2570060 10/01/10 EXECUTIVE PLANNERS 22.08 22.08 2025807 10/06/10 00145 BARRETT ENGINEERED PUMPS 072808 09/13/10 SAMPLE PUMP 1,059.23 1,059.23 2025938 10/20/10 12362 BERTHA TESORO Ref002409451 10/19/10 UB Refund Cst#0000127102 34.63 34.63 2025808 10/06/10 08144 BEST BUY 002463 09/29/10 COMPUTER LOAN 2,764.56 2,764.56 2025809 10106/10 10970 BRENNTAG PACIFIC INC BPI033030 09/14/10 SODIUM HYPOCHLORITE 3,412.41 Page 2 of20 n·.•~·~;c.-.,,-_~~~,__,._"._.'~_...,.'-.__c,_··___'_,_r_.·~_~"...'-"-".--.~-~_..~-..,~-"'-""'"O-""""""----'~·.··--.'··'·>'----,-__.____________•______.~,_~.~~,~.--~~_v"".".~'~,..._."~,.".-~'O"_:;.~~::_==""'_.~___,_a,~..~.~=~·"'._"'.",~"'_"_,. 2026074 10/27/10 10970 BRENNTAG PACIFIC INC 2025866 10/13/10 10970 BRENNTAG PACIFIC INC 2025983 10/20/10 10970 BRENNTAG PACIFIC INC 2025939 10/20/10 12353 BRENT LAMBERT 2025984 10/20/10 03679 BRG CONSULTING INC 2025867 10/13/10 08156 BROWNSTEIN HYATT FARBER 2025868 10/13/10 00223 C W MCGRATH INC 2025985 10/20/10 00223 C W MCGRATH INC 2026075 10/27/10 00223 C W MCGRATH INC 2025986 10/20/10 12269 CABLEORGANIZER.COM INC 2025810 10/06/10 11044 CALIFORNIA BANK &TRUST 2025869 10/13/10 02920 CALIFORNIA COMMERCIAL 196.18 500.93 585.79 200.02 7,959.21 8,008.78 1,950.00 2,626.01 1,077.49 10,516.18 11,854.66 11,996.00 68,663.61 196.18 3,227.95 3,043.50 1,593.22 1,245.07 1,102.12 760.87 536.08 345.85 3,406.64 1,944.83 728.59 527.99 495.72 362.74 223.05 200.02 460.78 40.15 3,366.29 1,406.46 1,082.52 951.10 691.70 461.14 3,043.50 2,075.11 884.23 876.16 760.87 368.91 1,950.00 1,077.49 2,626.01 11,996.00 68,663.61 Amount Paid Check Total OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Invoice Inv Date Description BPI033911 09/16/10 SODIUM HYPOCHLORITE BPI032634 09/13/10 SODIUM HYPOCHLORITE BPI033470 09/16/10 SODIUM HYPOCHLORITE BPI032633 09/13/10 SODIUM HYPOCHLORITE BPI033469 09/16/10 SODIUM HYPOCHLORITE BPI036107 09/23/10 SODIUM HYPOCHLORITE BPI035237 09/21/10 SODIUM HYPOCHLORITE BPI034406 09/17/10 SODIUM HYPOCHLORITE BPI034852 09/20/10 SODIUM HYPOCHLORITE BPI036108 09/23/10 SODIUM HYPOCHLORITE BPI034851 09/20/10 SODIUM HYPOCHLORITE BPI035640 09/23/10 SODIUM HYPOCHLORITE BPI034405 09/17/10 SODIUM HYPOCHLORITE BPI037360 09/28/10 SODIUM HYPOCHLORITE BPI0396911 09/27/10 SODIUM HYPOCHLORITE BPI037361 09/28/10 SODIUM HYPOCHLORITE BPI037362 09/28/10 SODIUM HYPOCHLORITE BPI037892 09/30/10 SODIUM HYPOCHLORITE BPI036910 09/27/10 SODIUM HYPOCHLORITE BPI038767 10/01/10 SODIUM HYPOCHLORITE BPI039515 10/05/10 SODIUM HYPOCHLORITE BPI039094 10/04/10 SODIUM HYPOCHLORITE BPI039096 10104/10 SODIUM HYPOCHLORITE BPI040640 10/07/10 SODIUM HYPOCHLORITE BPI039095 10/04/10 SODIUM HYPOCHLORITE Ref002409441 10/19/10 UB Refund Cst#0000066972 10093630 09/28/10 CONSULTANT CONTRACT FOR ENVSVCS 436416 09/29/10 PROFESSIONAL SERVICES 37566 09/21/10 CRUSHED ROCK 37577 09/22/10 CRUSHED ROCK 37655 09/30/10 CRUSHED ROCK 37689 10/05/10 CRUSHED ROCK 37712 10/07/10 CRUSHED ROCK 844613 09/20/10 STAINLESS TIES 14R 09/14/10 RETENTION FOR CCL CONTRACTING 96949 09/22/10 ASPHALT Date Vendor Vendor nameCheck# Page 3 of 20 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026076 10/27/10 02920 CALIFORNIA COMMERCIAL 97399 10107/10 ASPHALT 384.43 384.43 2025987 10/20/10 02989 CALIFORNIA MUNICIPAL 10092403 09/24/10 DEBT STATEMENT 475.00 475.00 2025870 10/13/10 00192 CALIFORNIA WATER ENVIRONMENT 0912330011010 10107/10 CERTIFICATE RENEWAL 81.00 81.00 2026077 10/27/10 00192 CALIFORNIA WATER ENVIRONMENT 93551010 10/19/10 MEMBERSHIP RENEWAL 132.00 132.00 2026078 10/27/10 01243 CALIFORNIA-NEVADA SECTION 002513 10/19/10 REGISTRATION FEE 35.00 35.00 2025871 10/13/10 01004 CALOLYMPIC SAFETY 075070 09/17/10 CAL-GAS 571.79 571.79 2026079 10/27/10 11057 CAREY,ANDREA 17801010 10/26/10 TRAVEL EXPENSE 222.10 222.10 2026080 10/27/10 02758 CARMEL BUSINESS SYSTEMS INC 7223 10101/10 RECORDS ASSISTANCE 1,335.66 7222 10101/10 RECORDS STORAGE 293.00 1,628.66 2025940 10/20/10 12361 CARMINA VALDEZ Ref002409450 10/19/10 UB Refund Cst #0000126487 16.22 16.22 2025872 10/13/10 03491 CASA DE ORO CAR WASH 002449 09/20/10 VEHICLE WASHING 91.97 91.97 2025811 10106/10 10571 CCL CONTRACTING 14 09/14/10 P2009/P2038 JAMACHA ROAD PIPELINE 1,302,708.50 1,302,708.50 2025873 10/13/10 10571 CCL CONTRACTING 14B 09/14/10 P2009/P2038 JAMACHAROAD PIPELINE 1,900.00 1,900.00 2025812 10/06/10 03232 COW GOVERNMENT INC TXG9875 09/16/10 FIBER-OPTIC SWITCH 1,139.53 1,139.53 2025988 10/20/10 03232 CDW GOVERNMENT INC LA1000316 09/30/10 NETWORK SUPPORT 1,445.00 LA1000344 09/30/10 NETWORK SUPPORT 136.00 1,581.00 2026081 10/27/10 09801 CENTERBEAMINC 123751 10/01/10 NETWORK MONITORING 1,697.00 1,697.00 2025761 10/06/10 12326 CHALDEAN SISTERS Ref002409089 10/05/10 UB Refund Cst #0000169955 1,630.31 1,630.31 2025989 10/20/10 04349 CHAMBERS,JONATHAN 002506 10/19/10 SAFETY BOOTS 150.00 150.00 2025941 10/20/10 12370 CHRIS MARKWELL Ref002409459 10/19/10 UB Refund Cst #0000159794 54.40 54.40 2025935 10/13/10 00446 CITY OF CHULAVISTA 002476 10/12/10 SECURITY DEPOSIT 5,500.00 5,500.00 2025934 10/13/10 00446 CITY OF CHULAVISTA 09/22/10 FEASIBILITY STUDY 69,449.18 69,449.18 2026082 10/27/10 03811 CITY OF EL CAJON 0000007032 10/07/10 FINALIZED PERMITS 9,625.04 9,625.04 2025990 10/20/10 04119 CLARKSON LAB &SUPPLY INC 52130 09/30/10 BACTERIOLOGICAL SERVICES 1,704.00 52117 09/30/10 BACTERIOLOGICAL SERVICES 1,542.00 52119 09/30/10 BACTERIOLOGICAL SERVICES 1,396.00 52116 09/30/10 BACTERIOLOGICAL SERVICES 412.00 52120 09/30/10 BACTERIOLOGICAL SERVICES 163.00 Page 4 of20 ..~~--_._--_._,.-_.._.,-----~---,-_.~..--_..,..~-.-------~.._-----------_.._,.'<~,,---.-'-'--.--'~'-,.~ ~-.-,..-~'~'~~-_....._~._'""~<-,-'--'_.'_.~ OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 52118 09/30/10 BACTERIOLOGICAL SERVICES 125.00 5,342.00 2025875 10/13/10 11520 CLINICAL LABORATORY OF 910253 09/21/10 LAB ANALYSIS 1,000.00 910256 09/21/10 LAB ANALYSIS 241.00 1,241.00 2025876 10/13/10 08160 COMPLETE OFFICE 12337500 09/20/10 USB PARALLEL ADAPTER 239.25 239.25 2026083 10/27/10 08160 COMPLETE OFFICE 12372600 10/04/10 COpyPAPER 1,011.05 1,011.05 2025813 10106/10 12282 CORELOGIC INFORMATION 12936563 08/31/10 REALQUEST BUNDLE 241.67 241.67 2025991 10/20/10 11806 COR-O-VAN DATA STORAGE INC DS1239122 09104/10 DATA STORAGE 359.42 359.42 2026084 10/27/10 11806 COR-O-VAN DATA STORAGE INC DS1240001 10/06/10 DATA STORAGE 364.46 364.46 2026085 10/27/10 02060 COSS,GREGORY 002512 10/19/10 SAFETYBOOTS 118.61 118.61 2025814 10/06/10 00193 COUNTY OF SAN DIEGO 002468 10/05/10 FILING FEES 2,060.25 2,060.25 2025877 10/13/10 00184 COUNTY OF SAN DIEGO DEH110090D11 10/06/10 SHUT DOWN TEST 773.50 773.50 2025992 10/20/10 00206 COUNTY OF SAN DIEGO 1986 09/24/10 LEGALADS 8,408.00 8,408.00 2025815 10/06/10 00099 COUNTY OF SAN DIEGO -DPW 131322 09/07/10 EXCAVATION PERMITS 4,874.12 4,874.12 2026086 10/27/10 00099 COUNTY OF SAN DIEGO -DPW 132420 09/30/10 EXCAVATION PERMITS 7,551.62 7,551.62 2026087 10/27/10 11286 CPM PARTNERS INC 10035 10/01/10 SCHEDULING SERVICES 11,657.50 11,657.50 2025762 10/06/10 12292 CRYSTAL WATKINS Ref002409054 10/05/10 UB Refund Cst#0000127394 75.00 75.00 2025942 10/20/10 12365 DANIEL BURBA Ref002409454 10/19/10 UB Refund Cst #0000143219 21.39 21.39 2025763 10/06/10 12297 DANIEL MORA Ref002409059 10/05/10 UB Refund Cst#0000154117 19.60 19.60 2025764 10106/10 12307 DAVID SCURLOCK Ref002409069 10/05/10 UB Refund Cst#0000160617 158.85 158.85 2025765 10/06/10 12291 DAVID SOTELO Ref002409053 10/05/10 UB Refund Cst#0000125700 12.15 12.15 2025878 10/13/10 02603 DELL MARKETING LP XF3CDDP48 09/23/10 LAPTOPS 4,391.31 4,391.31 2025993 10/20/10 02603 DELL MARKETING LP XF3C2RC36 09/23/10 DELL MEMORY 729.69 729.69 2025816 10/06/10 07680 DELTA HEALTH SYSTEMS P100924 09/27/10 EMPLOYEE HEALTH 1,608.40 1,608.40 2025994 10/20/10 03744 DEPARTMENT OF JUSTICE 814979 10/06/10 FINGERPRINTING SERVICES 102.00 102.00 2025995 10/20/10 00319 DEPARTMENT OF PUBLIC HEALTH 1130518 09/30/10 WATER SYSTEM FEES #3710034 10,276.51 10,276.51 Page 5 of20 -'-'-'-'-~'-'-.'--<--"~--------''''-'-'"'''''--'----~--'.-_._._~----'----"-'--"-'----',--,".--.-;"--.',,-__,__~.~'_._'_"~',T'-'.-:_.c:'__:..___-,...-~_,~,".<._--_._-~~..-.-~.,.,,_...-_.._---'-,~--_.-~_____~~'J.,.~._.~,,,.____.~,.~,.-c;;".',.~_"._.="'=~ OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025996 10/20/10 02519 DIEHL EVANS &COMPANY LLP 69214 09/30/10 AUDIT SERVICES 4,950.00 4,950.00 2025997 10/20/10 03417 DIRECTV 1356830653 10/05/10 SATELLITE TV 10.00 10.00 2025943 10/20/10 12352 DOUG HANSON Ref002409440 10/19/10 UB Refund Cst #0000062211 30.53 30.53 2025998 10/20/10 03152 DRIES,ROSEMARY 002489 10/12/10 TUITION 3,000.00 3,000.00 2025766 10/06/10 12257 ED PREHODEN Ref002409077 10105/10 UB Refund Cst #0000162525 34.59 34.59 2025817 10/06/10 02447 EDCO DISPOSALCORPORATION 1554580910 09/30/10 RECYCLING SERVICES 90.00 90.00 2025767 10/06/10 12301 EDGAR LOPEZ Ref002409063 10/05/10 UB Refund Cst #0000157563 13.41 13.41 2025944 10/20/10 12360 EDUARDO NAVARRO Ref002409448 10/19/10 UB Refund Cst #0000088387 185.53 185.53 2025818 10/06/10 01012 EL CAJON FORD C52314 09/10/10 DIAGNOSTICS 102.95 102.95 2025999 10/20/10 08023 EMPLOYEE BENEFIT SPECIALISTS 00508341N 09/30/10 ADMINISTRATION FEES 562.50 562.50 2025819 10/06/10 03227 ENVIROMATRIX ANALYTICAL INC 0090205 09/13/10 LABORATORYSERVICES 335.00 335.00 2025879 10/13/10 03227 ENVIROMATRIX ANALYTICAL INC 0090359 09/20/10 LABORATORY SERVICES 560.00 560.00 2026000 10/20/10 03227 ENVIROMATRIX ANALYTICAL INC 0090481 09/27/10 LABORATORY SERVICES 335.00 335.00 2026088 10/27/10 03227 ENVIROMATRIX ANALYTICAL INC 0100055 10/04/10 LABORATORY SERVICES 605.00 605.00 2025820 10/06/10 02259 ENVIRONMENTAL RESOURCE 594134 09/14/10 LABORATORY CERTIFICATION 985.84 985.84 2025768 10/06/10 12299 ERNEST HARLOW Ref002409061 10/05/10 UB Refund Cst #0000155157 23.41 23.41 2026089 10/27/10 02939 ESCARCEGA,LUIS 002511 10/22/10 SAFETY BOOTS 149.25 149.25 2026001 10/20/10 12372 EUGENE ALiM 250628211REF 10/19/10 CUSTOMER REFUND 136.53 136.53 2026002 10/20/10 00645 FEDEX 725135648 10/08/10 MAIL SERVICES 12.67 12.67 2025821 10/06/10 03546 FERGUSON WATERWORKS #1082 03549332 09/14/10 METER RETROFIT 5,562.78 0358366 09/14/10 INVENTORY 3,580.77 0357228 09/15/10 CLAVALVE CONTROLS 3,490.62 0358364 09/10/10 INVENTORY 815.62 03560641 09/14/10 SHELL CUTTERS 717.75 0358178 09/14/10 INVENTORY 547.45 0358971 09/15/10 INVENTORY 451.31 03574121 09/14/10 INVENTORY 91.35 0358406 09/14/10 NEW INSTALL 77.87 15,335.52 2025880 10/13/10 03546 FERGUSON WATERWORKS #1082 0359512 09/22/10 INVENTORY 1,386.56 Page 6 of 20 ----'~-~-.,~--~..--.~,-"'----,,-_.-~---~~--"--~···~··~~'C'T;C_'·--~'~·~-:;_~C_::;:'""';";~_~_==,_;;:;-;:;:~-"~"'=_~'~~"~""',,,""c,,~,~,,~.'-"~ OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 101612010 TO 1012712010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 03534461 09121110 INVENTORY 489.38 1,875.94 2026003 10/20/10 03546 FERGUSON WATERWORKS #1082 0360035 09/28/10 INVENTORY 3,741.00 0359792 09/28/10 INVENTORY 3,245.84 0359928 09/28/10 INVENTORY 1,447.29 0357864 09/30110 INVENTORY 778.11 9,212.24 2025945 10/20/10 12345 FIELD ASSET SERVICES Ref002409433 10/19/10 UB Refund Cst #0000168539 57.14 57.14 2025769 10/06/10 12312 FIELD ASSET SERVICES LLC Ref002409074 10/05/10 UB Refund Cst #0000162216 31.19 31.19 2026004 10/20/10 12187 FIRST AMERICAN DATA TREE LLC 90034090 09/30/10 ONLINE MAPS 99.00 99.00 2025881 10/13/10 04066 FIRST CHOICE SERVICES -SD 086255 09/17/10 COFFEE SUPPLIES 508.76 508.76 2026090 10/27110 04066 FIRST CHOICE SERVICES -SD 088568 10/01/10 COFFEE SUPPLIES 263.35 263.35 2026005 10/20/10 00035 FISHER SCIENTIFIC 5877918 09/30/10 LABORATORY SUPPLIES 76.95 76.95 2026091 10/27/10 02591 FITNESS TECH 6844 10/01/10 EQUIPMENT MAINTENANCE 125.00 125.00 2025770 10106/10 12300 FLAVIO QUINTERO Ref002409062 10/05/10 UB Refund Cst#0000155647 74.93 74.93 2025822 10/06/10 11962 FLEETWASH INC 3362114 09/10/10 VEHICLE WASH 221.40 3362108 09/10/10 VEHICLE WASH 43.20 264.60 2026006 10/20110 11962 FLEETWASH INC 3377837 09/24/10 VEHICLE WASH 354.24 354.24 2025882 10/13/10 01612 FRANCHISE TAX BOARD Ben2409191 10/14/10 PAYROLL DEDUCTION 75.00 75.00 2025883 10/13/10 02344 FRANCHISE TAX BOARD Ben2409187 10/14/10 PAYROLL DEDUCTION 150.00 150.00 2026092 10/27/10 01612 FRANCHISE TAX BOARD Ben2409564 10/28/10 PAYROLL DEDUCTION 75.00 75.00 2026093 10/27/10 02344 FRANCHISE TAX BOARD Ben2409560 10/28/10 PAYROLL DEDUCTION 150.00 150.00 2025946 10/20110 12359 FREDDIE AMOS Ref002409447 10/19110 UB Refund Cst #0000081600 44.05 44.05 2026094 10/27/10 03094 FULLCOURT PRESS 21494 10/01/10 PRINTING SERVICES 1,409.94 1,409.94 2026007 10/20/10 06291 GARCIACALDERON &RUIZ LLP 4311 10/12/10 LEGAL SERVICES 37,876.67 37,876.67 2026008 10120/10 11867 GEORGE YIM 002492 09/22110 LANDSCAPE PROGRAM 597.00 597.00 2025947 10120/10 12342 GINA BARNES Ref002409430 10/19/10 UB Refund Cst #0000163412 8.24 8.24 2026095 10/27/10 09571 GOVERNMENTJOBS.COM INC 075188 10104/10 SOFTWARE LICENSE 3,600.00 3,600.00 2025823 10/06/10 00101 GRAINGER INC 9345582838 09/13110 POWER METERS 312.58 Page 7 of20 ,.,,-.-.-.,-.-.'-~'~'-._--"'-"'--'~-------------'----_.----.._----~--_._---_._--'_._-----------,----,----"--,.-·,-,-,;c,,-,·~'_-·c-_:o-~_,_-_·_····y·_ OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 9347813256 09/14/10 CLAVALVE ITEMS 110.73 9347406598 09/14/10 CLAVALVE ITEMS 61.00 9347572852 09/14/10 CLAVALVE ITEMS 56.76 541.07 2025884 10/13/10 00101 GRAINGER INC 9352276399 09/21/10 RAS#3 MOTOR 757.16 9351273074 09/20/10 HYDRANT PAINT 237.50 9353888663 09/22/10 MAINTENANCE LIGHTING 132.46 9351273066 09/20/10 WAREHOUSE PAINT 297.68 1,424.80 2026009 10/20/10 00101 GRAINGER INC 9355316374 09/23/10 WIRE RACK 184.35 9356239427 09/24/10 DRILLS AND GASKETS 161.93 9357123695 09/27/10 DRILLS AND GASKETS 89.79 9356933151 09/27/10 DRILLS AND GASKETS 39.74 475.81 2026096 10/27/10 00101 GRAINGER INC 9372295502 CREDIT MEMO (154.00) 9362895410 10/04/10 SUMP PUMPS 1,168.86 9365870782 10/07/10 CURRENT TRANSFORMER 381.91 9361481410 10101/10 VACTOR TOOLS 164.03 9363004574 10/04/10 BATTERIES 106.03 9361669626 10101/10 VACTOR TOOLS 53.30 1,720.13 2025885 10/13/10 03289 GRANGER,WILLIAM E 15711010 10/08/10 TRAVEL EXPENSE 203.35 203.35 2025824 10/06/10 01576 GRAYBAR ELECTRIC CO INC 949770440 09/10/10 CABLE MANAGEMENT 374.64 374.64 2026097 10/27/10 02187 GREENSCAPE 2489 10/22/10 LANDSCAPING SERVICES 6,090.00 2502 10/05/10 PARCEL CLEARING 1,600.00 7,690.00 2026010 10/20/10 03773 GTC SYSTEMS INC 30741 09/30/10 CITIRX SUPPORT 114.86 114.86 2026011 10/20/10 02630 HAAKER EQUIPMENT COMPANY C76223 09/24/10 VACTOR PARTS 1,066.92 C76367 09/30/10 VACTOR PART 204.44 1,271.36 2025825 10/06/10 00174 HACH COMPANY 6905127 09/14/10 AMMONIA SENSOR 7,009.93 7,009.93 2025886 10/13/10 00174 HACH COMPANY 6913346 09/20/10 CL17 ANALYZER 3,586.02 6915478 09/21/10 EFFLUENT SAMPLER 3,038.83 6,624.85 2025948 10/20/10 12364 HANI HIYASAT Ref002409453 10/19/10 UB Refund Cst #0000142571 72.99 72.99 2025887 10/13/10 02629 HANSON AGGREGATES INC 628312 09/23/10 AGGREGATES 233.13 233.13 2025888 10/13/10 00169 HAWTHORNE POWER SYSTEMS PS100188196 09/03/10 REPAIR PART 297.21 297.21 2026098 10/27/10 10973 HDR ENGINEERING INC 234845H 10/04/10 TEMPORARY LABOR 4,200.00 4,200.00 2026012 10/20/10 04472 HECTOR I MARES-COSSIO 67 09/30/10 CONSULTANT SERVICES 3,600.00 3,600.00 2026099 10/27/10 00062 HELIXWATER DISTRICT 178540011010 10/12/10 WATER BILL -AVOCADO BLVD 48.86 Page 8 of20 •__.•_____.________,____._~•.__.,~.•_·_,,_,_·_____~_'·__T'_···.,,,.~,._,-~,~'-,-.._---.,,..,',","-=:C'---~-~·.-C----'-'.._.-._~.__..-.,"--'--~"~".••-.,~._._..~"._"'__".~.'C'.;;--:-__C::7',.~.-,.,-~..,-.......-~-~-'~~--,-""'-,,-_.-.-~.~-.-.__.__._-~..-_._---.---.........,.. OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 174639861010 10/12/10 WATER BILL -RUSSELL sa 42.20 91.06 2026100 10/27/10 02096 HELIXWATER DISTRICT HWD1021100tayjr 10/21/10 WETHYERS 505.56 505.56 2026013 10/20/10 08610 HENRYBROS ELECTRONICS INC 13030110 09/30/10 FOB READERS 48,620.56 b13080110 09/30/10 LICENSE RENEWAL 2,838.38 51,458.94 2026101 10/27/10 11874 HERNDON SOLUTIONS GROUP 1169 10/01/10 SPCC PLANS 6,262.50 6,262.50 2025889 10/13/10 06843 HI-TECH AIR CONDITIONING 22394 09/17/10 AC MAINTENANCE 668.21 668.21 2025771 10/06/10 12321 HOME REPOTOURS Ref002409084 10/05/10 UB Refund Cst#0000168565 28.92 28.92 2025826 10/06/10 06540 HORIZON CRANE SERVICE LLC 5613 09/14/10 CRANE RENTAL 540.00 540.00 2025890 10/13/10 06540 HORIZON CRANE SERVICE LLC 5596 09/21/10 CRANE RENTAL 580.00 580.00 2026102 10/27/10 06540 HORIZON CRANE SERVICE LLC 5629 10/06/10 MOTOR INSTALLATION 580.00 580.00 2026014 10/20/10 12335 HP ENTERPRISE SERVICES LLC U2669377 08/18/10 CHARGEBACK 300.00 300.00 2025827 10/06/10 03743 HYDROTEX 583419 09/14/10 OIL 1,721.56 1,721.56 2026103 10/27/10 12285 IDENT/CARD SYSTEMS 9313082916 10/04/10 SOFTWARE 1,488.38 9313091802 10/05/10 SOFTWARE 619.88 9313076729 10/04/10 SOFTWARE 546.97 2,655.23 2026015 10/20/10 01649 IDEXXDISTRIBUTION INC 246490795 09/29/10 LABORATORY SUPPLIES 3,573.83 3,573.83 2026016 10/20/10 08969 INFOSEND INC 45921 09/30/10 BILLING POSTAGE 15,449.04 45920 09/30/10 BILL PRINTING SERVICES 6,719.41 22,168.45 2026104 10/27/10 08969 INFOSEND INC 46037 10/04/10 INFOSEND EBPP 2,429.20 45574 09/13/10 INFOSEND EBPP 2,155.80 45577 09/13/10 INFOSEND EBPP 1,800.00 45576 09/13/10 INFOSEND EBPP 684.60 7,069.60 2026017 10/20/10 02372 INTERIOR PLANT SERVICE INC 35785 09/30/10 PLANT SERVICES 186.00 186.00 2025949 10/20/10 11569 JAMESJENKINS Ref002409449 10/19/10 UB Refund Cst #0000124040 12.35 12.35 2025772 10/06/10 12323 JAMES RHEINBOLD Ref002409086 10/05/10 UB Refund Cst #0000168637 7.90 7.90 2025773 10/06/10 12295 JANEL SAMS Ref002409057 10/05/10 UB Refund Cst#0000147204 20.37 20.37 2026105 10/27/10 03077 JANI-KING OF CALIFORNIA INC SD01 0100233 10/01/10 JANITORIAL SERVICES 1,062.84 1,062.84 2025891 10/13/10 10563 JCI JONES CHEMICALS INC 483665 CREDIT MEMO (3,000.00) 483595 09/22/10 CHLORINE 4,801.80 1,801.80 Page 9 of 20 '_~'_'.~._.'·~__._____~._k.__"·"_··.__,___~~__.,__,__,,__"__.,..~."..___.____•___..___""_''__~_.__·"._._.v.•~,·__~__~_~.____~.~'_c~T_-·-~•......,__·_-->·_-_.__._---.~._.._---_._----~--------------~-_._~..•.-,.--~___~'=·.v__.,.....-,-..,..".""..,.:~·..,..,__~,.."_"'·~~'"''''_-.-''''~·=~·"_,.·-;:r:-',....~~'.....,~_o_-"'''''''.., OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026106 10/27/10 10563 JCI JONES CHEMICALS INC 483595A 09/22/10 CHLORINE 36.00 36.00 2025950 10/20/10 12368 JENNIFERANDREW Ref002409457 10/19/10 UB Refund Cst #0000155965 29.30 29.30 2025774 10/06/10 12286 JOAN L1FF Ref002409048 10/05/10 UB Refund Cst #0000058004 10.00 10.00 2025951 10/20/10 12350 JODYGASS Ref002409438 10/19/10 UB Refund Cst #0000013935 9.30 9.30 2025952 10/20/10 12343 JOE SOUTHWICK Ref002409431 10/19/10 UB Refund Cst #0000163501 51.43 51.43 2025775 10/06/10 12290 JOHN KELLY Ref002409052 10/05/10 UB Refund Cst #0000125491 54.31 54.31 2025892 10/13/10 03172 JONES &STOKES ASSOCIATES INC 0073801 09/15/10 P1253 SAN MIGUEL HABITAT MGMTAREA 20,503.25 0073799 09/15/10 ENVIRONMENTAL CONSULTING 4,852.71 0073800 09/15/10 ENVIRONMENTAL CONSULTING 3,498.50 0073802 09/15/10 ENVIRONMENTAL CONSULTING 1,289.03 30,143.49 2026107 10/27/10 02449 JOSEPH G POLLARD CO INC 12839171N 10/01/10 DE-CHLOR TABLETS 1,637.54 1,637.54 2025776 10/06/10 12304 JOSIE GOMEZ Ref002409066 10/05/10 UB Refund Cst #0000159612 43.51 43.51 2025893 10/13/10 12283 K &C SERVICES LLC 118 09/13/10 OIL FILTER 669.60 669.60 2026018 10/20/10 12242 K HOVNANIAN HOMES 002501 10/18/10 WIO REFUND D0307-090078 2,617.62 002500 10/18/10 WIO REFUND D0307-090079 2,513.53 002499 10/18/10 WIO REFUND D0307-090080 2,227.24 7,358.39 2025777 10106/10 12287 KATHY GRAHAM Ref002409049 10/05/10 UB Refund Cst #0000094506 33.73 33.73 2025778 10/06/10 12311 KAYVON &ASSOCIATES Ref002409073 10/05/10 UB Refund Cst #0000161448 51.98 51.98 2025779 10/06/10 12316 KAYVON &ASSOCIATES Ref002409079 10105110 UB Refund Cst#0000162666 75.00 75.00 2025953 10/20/10 12348 KB COASTAL Ref002409436 10/19/10 UB Refund Cst #0000171863 2,254.76 2,254.76 2025780 10/06/10 12306 KEN CAPURRO Ref002409068 10/05/10 UB Refund Cst #0000160259 46.67 46.67 2025781 10/06/10 12324 KNOLLWOOD INVESTMENT CAP LLC Ref002409087 10/05/10 UB Refund Cst #0000169091 38.61 38.61 2026019 10/20/10 04996 KNOXATTORNEY SERVICE INC 575771 09/30/10 DELIVERY SERVICES 161.25 161.25 2025894 10/13/10 06497 LAKESIDE LAND COMPANY 242060 09/23/10 ASPHALT 31.45 31.45 2026108 10/27/10 06497 LAKESIDE LAND COMPANY 242525 10/07/10 ASPHALT 47.94 47.94 2025828 10/06/10 02011 LEFEUVRE,LARRY 002464 09/30/10 SAFETY BOOTS 148.14 148.14 2026020 10/20/10 09880 LEIGH,ROBERT 002486 10/11/10 SAFETY BOOTS 118.51 118.51 Page 10 of 20 .'._._-_.__.,,~_._-----..~--.-.-.-...,---~-.--'"_·__"__'_·_"'~r___._,--C'.~---'__.,-___---~---.,.---~-----------~_".__,-----·-~._.,,·"".,_~J"'.,-'70'~~..~',.-'''~-·~.~~"'''~-...:-____----:__.'.,._.___~._....".,_::'__,__.-.~,.."l'''''~,.".c~__o_~·_____·_'__·,_"_________·________________·"__---.,,-,- OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025782 10/06/10 12294 LILIANA RAMIREZ Ref002409056 10/05/10 UB Refund Cst #0000145428 75.84 75.84 2025829 10/06/10 05220 LOGICALIS INTEGRATION SOLUTION IN054012 09/10/10 VMWARE-VSPHERE 5,228.98 IN054013 09/10/10 MAINTENANCE &SUPPORT 1,470.42 6,699.40 2026021 10/20/10 05220 LOGICALIS INTEGRATION SOLUTION S030575 09/30/10 T & M SUPPORT 1,815.00 1,815.00 2025830 10/06/10 01054 LYNN'S LOCKSMITH SERVICE 269982 09/13/10 LOCK SERVICE 495.40 495.40 2026022 10/20/10 00628 MANHATTAN NATIONAL LIFE 002485 10/18/10 VOLUNTARY LIFE INSURANCE 314.98 314.98 2025954 10/20/10 12358 MARIA KHOSHNAW Ref002409446 10/19/10 UB Refund Cst #0000074104 85.81 85.81 2025955 10/20/10 12357 MARIZA DELGADILLO Ref002409445 10/19/10 UB Refund Cst #0000069011 37.04 37.04 2025783 10/06/10 12293 MARJORIE DYKEMA Ref002409055 10/05/10 UB Refund Cst #0000140523 21.55 21.55 2025956 10/20/10 12366 MARK FEDER Ref002409455 10/19/10 UB Refund Cst#0000144549 76.47 76.47 2026109 10/27/10 02902 MARSTON+MARSTONINC 2010101 10/04/10 PUBLIC RELATIONS 3,400.00 2010102 10/01/10 JAMACHA PIPELINE COMMUNITY OUTREACH 297.50 3,697.50 2026023 10/20/10 01183 MCMASTER-CARR SUPPLY CO 66744220 09/30/10 SPEED CONTROLLERS 1,030.47 65870725 09/21/10 HARDWARE SCREWS 205.94 65985873 09/22/10 WASHERS NUTS 118.22 66682859 09/30/10 REPAIR PART 62.30 65985855 09/22/10 HARDWARE SCREWS 35.66 66126061 09/23/10 WASHERS NUTS 11.55 1,464.14 2026110 10/27/10 01183 MCMASTER-CARR SUPPLYCO 67189688 10/06/10 SPEED CONTROLLERS 1,030.50 1,030.50 2026111 10/27/10 03169 MENDEZ-SCHOMER,ALICIA 15531010 10/26/10 TRAVEL EXPENSE 219.36 219.36 2026024 10/20/10 01524 MESALABORATORIES INC 0400380lN 09/30/10 ULTRASONIC FLOWMETER 18,703.29 18,703.29 2026112 10/27/10 09581 MICHAEL R WELCH PHD PE 7137 10/07/10 ENGINEERING PLANNING SERVICES 2,565.00 7136 07/05/10 ENGINEERING PLANNING SERVICES 1,215.00 3,780.00 2025957 10/20/10 12356 MIGUEL VERGARA Ref002409444 10/19/10 UB Refund Cst #0000068970 22.57 22.57 2025958 10/20/10 12347 MIKE LEWIS Ref002409435 10/19/10 UB Refund Cst #0000168562 53.03 53.03 2025895 10/13/10 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 271204 09/07/10 REPAIR PART 97.01 97.01 2026025 10/20/10 00237 MISSION JANITORIAL &ABRASIVE 22617300 09/29/10 JANITORIAL SUPPLIES 1,299.57 1,299.57 2026026 10/20/10 05743 MITCH MOSHTAGHI 002496 10/18/10 W/O REFUND D0303-XX9684 2,362.58 2,362.58 Page 11 of20 --~~.-.~--'-"~-'-"---"._~--._-"..._-.._,,-.-""-,,---,--",,.,~_.,..----,-....__.__._.._-_._._...._---_...._-,---~~--~------------------~---.-.-.~._.,---.--'..-.•,<';"''''- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025831 10/06/10 02371 MOODY'S INVESTORS SERVICE C1765464 09/15/10 1996 CERTIFICATES 5,500.00 5,500.00 2026027 10/20/10 01701 MUNOZ,JERRY 002490 10/12/10 TUITION 975.00 975.00 2025896 10/13/10 09881 NATGUN CORPORATION 00005901 10/13/10 RETAINAGE RELEASE 217,683.29 217,683.29 2025897 10/13/10 03523 NATIONAL DEFERRED COMPENSATION Ben2409177 10/14/10 DEFERRED COMP PLAN 8,338.43 8,338.43 2026113 10/27/10 03523 NATIONAL DEFERRED COMPENSATION Ben2409550 10/28/10 DEFERRED COMP PLAN 8,602.07 8,602.07 2026114 10/27/10 03605 NATIONAL FIRE PROTECTION ASSN 4990649Y 09/25/10 7011 SB NATIONAL ELECTRICAL CODE SO 80.45 80.45 2025832 10/06/10 12275 NEC CORPORATION OF AMERICA TMOOOO019160 09/14/10 LABOR 122.00 122.00 2025898 10/13/10 12275 NEC CORPORATION OFAMERICA MCOOOOO08661 09/21/10 PHONE MAINTENANCE 18,941.76 TMOOOO019358 09/22/10 LABOR 122.00 19,063.76 2025784 10/06/10 12313 NEW VISTA REALTY Ref002409075 10/05/10 UB Refund Cst #0000162253 32.06 32.06 2026028 10/20/10 00745 NEWARK 19519052 09/17/10 MICROPHONE CABLES 236.52 19533613 09/22/10 MICROPHONE CABLES 35.62 19526813 09/21/10 MICROPHONE CABLES 27.01 299.15 2025833 10/06/10 03517 NOBEL SYSTEMS 11284 08/31/10 DETAIL DRAWINGS 3,000.00 3,000.00 2025834 10/06/10 00510 OFFICE DEPOT INC 534144960001 CREDIT MEMO (10.16) 533357590001 09/13/10 OFFICE SUPPLIES 254.69 533176632001 09/10/10 SUPPLIES 95.37 533266057001 09/10/10 OFFICE SUPPLIES 32.61 534144959001 09/16/10 OFFICE SUPPLIES 9.67 382.18 2025899 10/13/10 00510 OFFICE DEPOT INC 535008067001 09/23/10 OFFICE SUPPLIES 95.62 534148997001 09/17/10 OFFICE SUPPLIES 84.32 534813820001 09/22/10 UTENSILS 20.25 200.19 2026029 10/20/10 00510 OFFICE DEPOT INC 536453521001 CREDIT MEMO (10.90) 534573463001 09/21/10 COMPUTER FILTERS 390.54 535008607001 09/24/10 OFFICE SUPPLIES 122.30 535183294001 09/24/10 OFFICE SUPPLIES 83.13 535575003001 09/29/10 FILING SUPPLIES 35.92 535454188001 09/28/10 FILE BOX 18.92 639.91 2026115 10/27/10 00510 OFFICE DEPOT INC 535620223001 CREDIT MEMO (97.64) 535932416001 10/01/10 TONER/CARTRIDGE 214.32 535932877001 10/04/10 TONER/CARTRIDGE 97.40 214.08 2025835 10/06/10 03149 ON SITE LASER LLC 44847 09/15/10 PRINTER SERVICE 389.81 389.81 2026116 10/27/10 07496 ORTEGA-CARRILLO,ALMA PATRICIA 002510 10/21/10 TUITION 125.00 125.00 Page 12 of 20 ,~•._.__,_~_~__,__..•'v,'.',.--._._-_....~.._.-.-.-.."'"__,__'__."~~_"~_._<r~"._•.,.,.".~-__7_"""'~';'~_'~""'-"'''-''cr:;---:-:,-.--'--~_-':_"'~-c:.~..,,-'~.'___·"_"·"·.·_~____~·______•---.-_-'_-~.-"---c-,~,~."",,,,,,,,,,,,,,-~,-,,,,...•._..~.____ OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025785 10/06/10 12315 OTAY 13 INVESTORS LLC Ref002409078 10/05/10 UB Refund Cst #0000162657 1,722.27 1,722.27 2025900 10/13/10 03101 OTAY WATER DISTRICT Ben2409179 10/14/10 PAYROLL DEDUCTION -ASSN DUES 749.00 749.00 2026117 10/27/10 03101 OTAY WATER DISTRICT Ben2409552 10/28/10 PAYROLL DEDUCTION -ASSN DUES 742.00 742.00 2025901 10/13/10 03780 OWEN,DOUGLAS WESTLEY 970031010 10/11/10 LICENSE RENEWAL 200.00 200.00 2025902 10/13/10 01002 PACIFIC PIPELINE SUPPLY 141510 09/17/10 INVENTORY 25,141.37 141335 09/21/10 INVENTORY 3,138.72 141681 09/21/10 INVENTORY 168.08 28,448.17 2026118 10/27/10 01002 PACIFIC PIPELINE SUPPLY 142338 10/05/10 INVENTORY 3,229.88 141922 10/05/10 SHOP TOOLS 500.25 3,730.13 2026030 10/20/10 03017 PACIFIC SAFETY COUNCIL 67535 09/28/10 SAFETYTRAINING 118.00 118.00 2025959 10/20/10 12344 PATRICIAMCKELVEY Ref002409432 10/19/10 UB Refund Cst #0000168185 65.37 65.37 2025960 10/20/10 12346 PATRICIA MCKELVEY Ref002409434 10/19/10 UB Refund Cst #0000168547 75.23 75.23 2026031 10/20/10 05497 PAYPAL INC 8989558 09/30/10 PAYMENT SERVICES 54.10 54.10 2025903 10/13/10 00138 PEARSON FORD CO 368946 08/31/10 REPAIR PARTS 2,320.78 2,320.78 2026119 10/27/10 00227 PELL MELL SUPPLY 47426900 10/06/10 NUTS/BOLTS 1,044.00 1,044.00 2025904 10/13/10 10514 PENSA,RHIANNA 17851010 10/08/10 TRAVEL EXPENSE 399.01 399.01 2026120 10/27/10 03180 PERFORMANCE METER INC 00178521N 10/01/10 BARREL LOCKS 604.11 604.11 2026032 10/20/10 03457 PERSONAL TOUCH WEST 21761 09/24/10 WATER BOTTLES 1,741.96 1,741.96 2025905 10/13/10 00137 PETTY CASH CUSTODIAN 002480 10/12/10 PETTYCASH 339.71 339.71 2026121 10/27/10 00137 PETTYCASH CUSTODIAN 002515 10/26/10 PETTY CASH 361.89 361.89 2025786 10/06/10 12317 PGI INVESTMENTS LLC Ref002409080 10/05/10 UB Refund Cst#0000163196 328.26 328.26 2026033 10/20/10 12188 PHOTO GEODETIC CORPORATION 4170 09/30/10 AERIAL MAPPING 2,400.00 2,400.00 2026034 10/20/10 12339 PR II WINDSTAR POINTE MASTER 002498 10/18/10 W/O REFUND 00653-090004 3,681.35 002497 10/18/10 W/O REFUND 00653-090013 773.65 4,455.00 2026035 10/20/10 10819 PREDICTIVE MAINTENANCE 1356 09/28/10 VIBRATION ANALYSIS 7,100.00 7,100.00 2026122 10/27/10 10662 PROFESSIONAL MAINTENANCE 78156 10/01/10 JANITORIAL SERVICES 2,675.00 2,675.00 Page 13 of 20 _....,-----,.._._------_._-,..".----~",.~--.~•.<......~·-c_.·__·'~~-._c';.-.-:;___-.---,_.,,-"·~-=___..,--,·~,,_.~-___~_._"•.•J'.,.__,~_~••_--~~,-__.c"'·c-",·""."i!""'i-·-'~-C_' OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026036 10/20/10 12135 PROPULSION CONTROLS 37534 09/29/10 PUMP REBUILD 11,356.00 11,356.00 2025836 10106/10 06641 PRUDENTIAL OVERALL SUPPLY 30127807 09/16/10 UNIFORMS 317.28 30127806 09/16/10 MATS,TOWELS &SUPPLIES 166.12 30127808 09/16/10 MATS,TOWELS &SUPPLIES 137.15 30127070 09/14/10 MATS,TOWELS &SUPPLIES 102.27 30127069 09/14/10 UNIFORMS 66.36 30127809 09/16/10 UNIFORMS 54.92 844.10 2025906 10/13/10 06641 PRUDENTIAL OVERALL SUPPLY 30129399 09/23/10 UNIFORMS 322.70 30129398 09/23/10 MATS,TOWELS &SUPPLIES 166.12 30129400 09/23/10 MATS,TOWELS &SUPPLIES 137.15 30128730 09/21/10 MATS,TOWELS &SUPPLIES 102.27 30128729 09/21/10 UNIFORMS 74.36 30129401 09/23/10 UNIFORMS 70.34 872.94 2026037 10/20/10 06641 PRUDENTIAL OVERALL SUPPLY 30130975 09/30/10 UNIFORMS 322.78 30130974 09/30/10 MATS,TOWELS &SUPPLIES 166.12 30130976 09/30/10 MATS,TOWELS &SUPPLIES 139.83 30130977 09/30/10 UNIFORMS 68.34 697.07 2026123 10/27/10 06641 PRUDENTIAL OVERALL SUPPLY 30132561 10/07/10 UNIFORMS 333.86 30132560 10/07/10 MATS,TOWELS &SUPPLIES 166.12 30132562 10/07/10 MATS,TOWELS &SUPPLIES 139.83 30131900 10/05/10 MATS,TOWELS &SUPPLIES 102.27 30130322 09/28/10 MATS,TOWELS &SUPPLIES 102.27 30132563 10/07/10 UNIFORMS 56.92 30131899 10/05/10 UNIFORMS 54.94 956.21 2025837 10/06/10 00078 PUBLIC EMPLOYEES RETIREMENT Ben2408869 09/30/10 PERS 143,102.35 143,102.35 2026038 10/20/10 00078 PUBLIC EMPLOYEES RETIREMENT Ben2409173 10/14/10 PERS CONTRIBUTION 142,106.61 142,106.61 2026039 10/20/10 04065 PURCHASE POWER 75031010 10105/10 POSTAGE METERREFILL 2,119.99 2,119.99 2025838 10106/10 01342 R J SAFETYSUPPLY CO INC 27981100 09/15/10 WAREHOUSE SAFETY 680.04 680.04 2025907 10/13/10 01342 R J SAFETY SUPPLY CO INC 27981101 09/22/10 WAREHOUSE SAFETY 218.72 218.72 2026040 10/20/10 01342 R J SAFETY SUPPLY CO INC 28024000 09/28/10 SHOP TOOLS 202.28 202.28 2025787 10/06/10 12309 RANCHO BUENAVISTA REO Ref002409071 10105110 UB Refund Cst #0000160921 10.10 10.10 2026041 10/20/10 12337 RANCHO SAN DIEGOASSOCIATION 002494 10/12/10 IRRIGATION UPGRADE PROGRAM 7,500.00 7,500.00 2025839 10/06/10 02041 RBF CONSULTING 10090010 09/15/10 CONSTRUCTION MANAGEMENT 360.00 360.00 2026124 10/27/10 02041 RBF CONSULTING 10090030 10106/10 SUPPLY LINK 1,230.00 1,230.00 Page 14 of 20 _-~·_"·'_·___~_~_·'··_~_~···O'·_______~_________·_______,___~~_._._.__-_..•_-----_._-_.--_.__._._._---_._--_._..~--_..-._.",--_.-._-.------------- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025840 10/06/10 00021 RCP BLOCK &BRICK INC 4343806 09/13/10 RAPID SET 1,772.63 1,772.63 2025841 10/06/10 01890 RECON 41912 09/13/10 P1253 -PREPARATION OF THE SUBAREA PLAN 12,089.27 12,089.27 2025842 10/06/10 06645 RELIABLE ELEVATOR INC 23290 09/01/10 ELEVATOR MAINTENANCE 430.00 430.00 2025788 10/06/10 12298 RENEE SIMPSON Ref002409060 10/05/10 UB Refund Cst #0000155036 74.97 74.97 2026042 10/20/10 12338 REPUBLIC SERVICES INC 002505 10/18/10 WIO REFUND D0789-090069 288.25 288.25 2025789 10/06/10 12303 RICHARD HOLLIS Ref002409065 10/05/10 UB Refund Cst #0000158946 32.00 32.00 2025961 10/20/10 12355 RICHARD NANCE Ref002409443 10/19/10 UB Refund Cst #0000068078 65.21 65.21 2025962 10/20/10 12349 RICHARD OLNEY Ref002409437 10/19/10 UB Refund Cst #0000012384 25.77 25.77 2026125 10/27/10 11663 RICK SALDANA 625047550REF 10/25/10 CUSTOMER REFUND 34.01 34.01 2026126 10/27/10 11685 RLLD LP 127600 09/07/10 LIGHTING EQUIPMENT 270.00 270.00 2025843 10/06/10 04542 ROBAK,MARK 70140710 07/31/10 MILEAGE REIMBURSEMENT 30.50 70140810 08/31/10 MILEAGE REIMBURSEMENT.9.00 39.50 2025908 10/13/10 04542 ROBAK,MARK 70140910 09/30/10 MILEAGE REIMBURSEMENT 21.00 21.00 2025790 10/06/10 12322 RONALD WALLER Ref002409085 10/05/10 UB Refund Cst #0000168585 119.93 119.93 2025844 10/06/10 00217 RW LITTLE CO INC 98709 09/16/10 SANDBLASTING 150.00 150.00 2026043 10/20/10 00217 RW LITTLE CO INC 98803 09/23/10 VAULT RENOVATION 4,600.00 4,600.00 2025845 10/06/10 05130 SAFARI MICRO INC 190878 09/08/10 VIDEO CABLE 522.00 190591 08/31/10 CAT 5 CABLES 271.88 793.88 2026044 10/20/10 05130 SAFARI MICRO INC 191890 09/30/10 ADOBE PHOTOSHOP 2,251.13 2,251.13 2025963 10/20/10 12354 SAM VICKERS Ref002409442 10/19/10 UB Refund Cst #0000067821 44.47 44.47 2025909 10/13/10 11596 SAN DIEGO CONSTRUCTION WELDING 7741 09/23/10 WELDING 680.00 680.00 2026045 10/20/10 11596 SAN DIEGO CONSTRUCTION WELDING 7738 09/21/10 WELDING 2,790.00 2,790.00 2025910 10/13/10 02586 SAN DIEGO COUNTY ASSESSOR 2010110 10/10/10 ASSESSOR DATA 125.00 125.00 2026127 10/27/10 02680 SAN DIEGO COUNTY TREASURER 58516020001010 10/05/10 BOND TAXES 152.56 152.56 2025846 10/06/10 00003 SAN DIEGO COUNTY WATER 002472 10/05/10 REGISTRATION FEES 170.00 170.00 2026128 10/27/10 00003 SAN DIEGO COUNTY WATER 002516 10/26/10 REGISTRATION FEE 85.00 85.00 Page 15 of20 ~-"_-..,,,•..',--.'-"'-~----"'-'--'-'-----'~-"---_·•.·_''",··___,,·c··_·_'__'~_~·___c __·,.-,-~.~--•._~.,,_..-"-.'~",',------',-_.',._""-""'-',c~,,,,,,,~·~~·,,,"·__'_~__"__'_.,..-._--...•'_...---_."......_--_..,-_._---._-._.•.---'---'~.:-~",."•..~,.., OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2025847 10/06/10 00121 SAN DIEGO GAS &ELECTRIC 002467 09/27/10 UTILITY EXPENSES 55,929.49 002465 09/27/10 UTILITY EXPENSES 22,998.21 002466 09/24/10 UTILITY EXPENSES 405.65 79,333.35 2025911 10/13/10 00121 SAN DIEGO GAS &ELECTRIC 002474 10/05/10 UTILITY EXPENSES 60,394.55 002475 09/29/10 UTILITY EXPENSES 17,662.99 78,057.54 2026046 10/20/10 00121 SAN DIEGO GAS &ELECTRIC 002491 10/06/10 UTILITY EXPENSES 19,618.45 19,618.45 2025791 10/06/10 12319 SAN DIEGO REO Ref002409082 10/05/10 UB Refund Cst #0000168399 54.84 54.84 2026047 10/20/10 09345 SANTOS,CESAR 002487 10/11/10 SAFETY BOOTS 138.26 138.26 2025964 10/20/10 12367 SATURNINO LORENZO Ref002409456 10/19/10 UB Refund Cst #0000145403 5.46 5.46 2025912 10/13/10 05321 SCHIFF ASSOCIATES 05681 08/31/10 CATHODIC PROTECTION 1,657.75 1,657.75 2026129 10/27/10 12333 SCHINDLER ELEVATOR CORPORATION 8102724109 10/01/10 ELEVATOR MAINTENANCE 430.00 430.00 2025965 10/20/10 12371 SD COASTLINE LP Ref002409460 10/19/10 UB Refund Cst#0000160445 33.60 33.60 2026048 10/20/10 12373 SEPARA,BERNARDO 002507 09/18/10 COMPUTER LOAN 714.85 714.85 2025913 10/13/10 07735 SERVICEBUREAU AR164395 09/15/10 POPULATION ESTIMATES 400.00 400.00 2026130 10/27/10 07735 SERVICEBUREAU AR164428 10/04/10 POPULATION ESTIMATES 250.00 250.00 2025914 10/13/10 04544 SIGN CRAFTERS 9121 09/23/10 NO TRESPASSING SIGN 1,646.25 1,646.25 2025915 10/13/10 02660 SILVA,GABRIEL S 002473 10/06/10 SAFETY BOOTS 138.26 138.26 2025792 10/06/10 12327 SKANSKA USA CIVIL WEST Ref002409090 10/05/10 UB Refund Cst #0000169997 752.02 752.02 2025916 10/13/10 03592 SOFTCHOICE CORPORATION 2464375 09/13/10 RAM UPGRADES 393.94 393.94 2025848 10/06/10 02201 SOLAR DEPOT 0000169423 09/14/10 SOLARSYSTEM 1,320.32 1,320.32 2026049 10/20/10 02201 SOLAR DEPOT INC 0000170459 09/30/10 SOLARSYSTEM 2,188.75 2,188.75 2026050 10/20/10 12336 SOLOMON ROYTBERG 002493 10/13/10 LANDSCAPE PROGRAM 603.00 603.00 2025966 10/20/10 12351 SONIA RODRIGUEZ Ref002409439 10/19/10 UB Refund Cst #0000027812 18.00 18.00 2025849 10/06/10 03103 SOUTHCOAST HEATING &C44217 09/14/10 AC MAINTENANCE 1,068.00 1,068.00 2025793 10/06/10 12308 SOUTHLAND HOME MORTGAGE Ref002409070 10/05/10 UB Refund Cst #0000160917 20.57 20.57 2026051 10/20/10 03760 SPANKY'S PORTABLE SERVICES INC 856770 09/16/10 TOILET RENTAL 98.25 Page 16 of 20 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 857600 09/24/10 TOILET RENTAL 80.06 857601 09/24/10 TOILET RENTAL 80.06 857602 09/24/10 TOILET RENTAL 80.06 857728 09/27/10 TOILET RENTAL 80.06 418.49 2025850 10/06/10 03516 SPECIAL DISTRICT RISK 0034260lN 09/02/10 WORKERS'COMPENSATION 50,756.00 50,756.00 2026131 10/27/10 05968 STAPLES BUSINESS ADVANTAGE 3143079727 10/02/10 FILE FOLDERS 94.53 94.53 2025917 10/13/10 01560 STATE CHEMICAL MFG CO,THE 94757644 08/31/10 SHOP SUPPLIES 182.53 182.53 2025918 10/13/10 06281 STATE DISBURSEMENT UNIT Ben2409195 10/14/10 PAYROLL DEDUCTION 264.00 264.00 2025919 10/13/10 06299 STATE DISBURSEMENT UNIT Ben2409185 10/14/10 PAYROLL DEDUCTION 237.69 237.69 2025920 10/13/10 06303 STATE DISBURSEMENT UNIT Ben2409189 10/14/10 PAYROLL DEDUCTION 836.30 836.30 2026132 10/27/10 06281 STATE DISBURSEMENT UNIT Ben2409568 10/28/10 PAYROLL DEDUCTION 264.00 264.00 2026133 10/27/10 06299 STATE DISBURSEMENT UNIT Ben2409558 10/28/10 PAYROLL DEDUCTION 237.69 237.69 2026134 10/27/10 06303 STATE DISBURSEMENT UNIT Ben2409562 10/28/10 PAYROLL DEDUCTION 836.30 836.30 2025851 10106/10 00097 STATE OF CALIFORNIA 440221330910 10/04/10 MAINTENANCE FEE 282.38 282.38 2025921 10/13/10 02261 STATE STREET BANK &TRUST CO Ben2409175 10/14/10 DEFERRED COMP PLAN 6,201.56 6,201.56 2026135 10/27/10 02261 STATESTREET BANK &TRUST CO Ben2409548 10/28/10 DEFERRED COMP PLAN 6,201.56 6,201.56 2025922 10/13/10 12226 STEVEN ROSSO 1122 09/21/10 CONSULANT SERVICES 375.00 375.00 2025852 10/06/10 02188 TALLEY COMMUNICATIONS 10042736 09/14/10 WIRELESS ANTENNA 2,236.74 2,236.74 2025923 10/13/10 02799 TARULLI TIRE INC -SAN DIEGO 8/16/10 08/16/10 TIRE SERVICE 306.52 306.52 2025853 10/06/10 11754 TECHNOLOGYASSOCIATES K30800120 09/14/10 CONSULTING SERVICES 2,402.13 2,402.13 2026052 10/20/10 12079 TELKIN DEVELOPMENT CONSULTING 201002 07/29/10 SITE ASSESMENT 6,030.00 201001 04/09/10 SITE ASSESMENT 4,680.00 10,710.00 2026053 10/20/10 12079 TELKIN DEVELOPMENT CONSULTING 201003 09/15/10 SITE ASSESMENT 1,920.00 1,920.00 2025794 10/06/10 12289 TERESA THORNTON Ref002409051 10/05/10 UB Refund Cst #0000123822 45.31 45.31 2025854 10/06/10 11289 TLC STAFFING IVC050000043449 09/30/10 CWAINTERN 270.00 270.00 2025924 10/13/10 11289 TLC STAFFING IVC05000004 10/01/10 CWA INTERN 810.00 810.00 2026054 10/20/10 11289 TLC STAFFING IVC050000043668 10/15/10 CWAINTERN 270.00 Page 17 of20 ~.~.~-._-'._-------,----"--·-'--'-·---'--__,·.___~~.~7~"·T--·-__..__,-~...,··.-,-.,.~,-···_-·,-..."..._'~~_r·"._0,'-______.··"----,-,..,...··'..'_-T'O"~·:_c~..."".c_~__-o~~"._·_.~.-._~-'--------.----_-·--c'":}~- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total IVC050000043591 10/08/10 CWAINTERN 270.00 540.00 2026055 10/20/10 04977 T-MOBILE 4150860451010 10/05/10 CELL PHONE SERVICES 247.73 247.73 2025795 10106/10 12296 TONY ARCHER Ref002409058 10105/10 UB Refund Cst #0000153838 45.05 45.05 2025925 10/13/10 03314 TRAN, THIEN 15461010 10/12/10 TRAVEL EXPENSE 651.00 651.00 2025855 10106/10 00870 TRANSCATINC 453867 09/15/10 CALIBRATION RULER 127.18 127.18 2026056 10/20/10 12084 TRIACTIVE INC 10915 09/30/10 SOFTWARE SUPPORT 33.48 33.48 2026136 10/27/10 00427 UNDERGROUND SERVICE ALERT OF 920100456 10101/10 UNDERGROUND ALERTS 262.50 262.50 2025856 10106/10 12330 UNION-TRIBUNE PUBLISHING CO 4863551010 10105/10 SUBSCRIPTION RENEWAL 209.94 209.94 2025857 10106/10 08262 UNITED RENTALS NORTHWEST INC 89546087001 09/03/10 LIFT RENTAL 1,085.83 89757697001 09/14/10 CONCRETE 179.44 1,265.27 2026137 10/27/10 08262 UNITED RENTALS NORTHWEST INC 90170028001 10106/10 CONCRETE 179.44 90169899001 10106/10 CONCRETE 123.06 302.50 2025926 10/13/10 05417 UNITED STATES DEPARTMENT Ben2409193 10/14/10 PAYROLL DEDUCTION 100.00 100.00 2026138 10/27/10 05417 UNITED STATES DEPARTMENT Ben2409566 10/28/10 PAYROLL DEDUCTION 100.00 100.00 2025927 10/13/10 00350 UNITED STATES POSTAL SERVICE 104339511010 10/11/10 REIMBURSE POSTAGE MACHINE 2,100.00 2,100.00 2025928 10/13/10 03577 UNITED STATES TREASURY Ben2409197 10/14/10 PAYROLL DEDUCTION 745.52 745.52 2026139 10/27/10 03577 UNITED STATES TREASURY Ben2409570 10/28/10 PAYROLL DEDUCTION 745.52 745.52 2026140 10/27/10 07662 UNITEDHEALTHCARE SPECIALTY 103000000039 11101/10 BASIC L1FE/AD&D &SUPP LIFE INS 5,980.84 5,980.84 2026141 10/27/10 03212 UNUM LIFE INSURANCE Ben2409544 10/28/10 CONTRIBUTION TO LTD 5,889.88 5,889.88 2026142 10/27/10 12374 URBINA'S MASTER SWEEPING INC 10325 09/29/10 CONSTRUCTION SWEEPING 440.00 440.00 2025858 10/06/10 07674 US BANK CORPORATE PAYMENT 002469 09/22/10 DISTRICT EXPENSES 167.98 167.98 2025929 10/13/10 07674 US BANK CORPORATE PAYMENT 002481 09/22/10 DISTRICT EXPENSES 5,274.51 002478 09/22/10 DISTRICT EXPENSES 45.12 002477 09/22/10 DISTRICT EXPENSES (478.00)4,841.63 2026057 10/20/10 07674 US BANK CORPORATE PAYMENT 002508 09/22/10 DISTRICT EXPENSES 12,497.84 002488 09/22/10 DISTRICT EXPENSES 5,215.12 17,712.96 2026143 10/27/10 07674 US BANK CORPORATE PAYMENT 002514 09/22/10 DISTRICT EXPENSES 507.21 507.21 Page 18 of 20 ._-------------------_._-------~-_._._------------------,--------..--.--------.. OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010 TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2026058 10/20/10 06829 US SECURITY ASSOCIATES INC 8744 09/30/10 SECURITYSERVICES 219.75 219.75 2025859 10/06/10 11606 USA BLUE BOOK 235855 09/15/10 PANEL DISPLAYS 662.08 662.08 2026059 10/20/10 08028 VALLEY CONSTRUCTION MANAGEMEN-SD100107 09/30/10 INSPECTION SERVICES 14,060.00 14,060.00 2025930 10/13/10 01095 VANTAGEPOINT TRANSFER AGENTS Ben2409181 10/14/10 DEFERRED COMP PLAN 6,809.34 6,809.34 2025931 10/13/10 06414 VANTAGEPOINT TRANSFER AGENTS Ben2409183 10/14/10 401APLAN 5,055.45 5,055.45 2026144 10/27/10 01095 VANTAGEPOINT TRANSFER AGENTS Ben2409554 10/28/10 DEFERRED COMP PLAN 6,830.72 6,830.72 2026145 10/27/10 06414 VANTAGEPOINT TRANSFER AGENTS Ben2409556 10/28/10 401A PLAN 1,097.00 1,097.00 2025932 10/13/10 07670 VOLVO ROAD MACHINERY INC N501000170 09/22/10 REPLACEMENT COMPRESOR 14,768.25 14,768.25 2025796 10/06/10 12320 WACHOVIA Ref002409083 10/05/10 UB Refund Cst #0000168423 131.86 131.86 2025967 10/20/10 12341 WACHOVIA Ref002409429 10/19/10 UB Refund Cst #0000162992 79.55 79.55 2026146 10/27/10 10340 WAGEWORKS INC 88185 10/01/10 FLEXIBLE SPENDING 568.80 568.80 2026060 10/20/10 12027 WALTCOMM 201009300TAY 09/30/10 SECURITY ENHANCEMENTS 4,800.00 4,800.00 2026147 10/27/10 02700 WATER CONSERVATION GARDEN 62656 10/01/10 OPERATING COSTS 25,047.00 25,047.00 2025860 10/06/10 00215 WATER EDUCATION FOUNDATION 1689 10/06/10 SUBSCRIPTION RENEWAL 60.00 60.00 2026061 10/20/10 01343 WE GOT YA PEST CONTROL 64368 09/29/10 PEST CONTROL 345.00 63755 08/24/10 PEST CONTROL 115.00 64068 09/14/10 PEST CONTROL 115.00 575.00 2025861 10/06/10 07780 WEBER SCIENTIFIC 00511576 09/01/10 LABORATORY SUPPLIES 495.99 495.99 2026148 10/27/10 11692 WEST COAST IND COATINGS INC 6 10/04/10 RESERVOIR COATING 103,133.79 103,133.79 2025797 10/06/10 12305 WESTERN DIRECT REALTY Ref002409067 10/05/10 UB Refund Cst #0000159644 75.00 75.00 2026062 10/20/10 00125 WESTERN PUMP INC 00925591N 09/28/10 APCD TESTING 400.00 400.00 2026063 10/20/10 04605 WILLIAM LYON HOMES 002502 10/18/10 W/O REFUND 00160-000001 800.21 800.21 2025933 10/13/10 02230 WILLIAMSON,KELLI 14371010 10/07/10 TRAVEL EXPENSE 132.00 132.00 2025968 10/20/10 12369 ZACH GOAD Ref002409458 10/19/10 UB Refund Cst #0000157458 27.18 27.18 2025798 10/06/10 12310 ZEPHYR PARTNERS Ref002409072 10/05/10 UB Refund Cst#0000161186 75.26 75.26 Page 19 of 20 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2025756 THROUGH 2026148 RUN DATES 10/6/2010TO 10/27/2010 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total GRAND TOTAL Page 20 of 20 3,929,341.39 3,929,341.39