HomeMy WebLinkAbout09-01-10 Board Packet (Part 1)OTAY WATER DISTRICT
BOARD OF DIRECTORS MEETING
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY,CALIFORNIA
WEDNESDAY
September 1,2010
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.APPROVE THE MINUTES OF THE REGULAR MEETING OF APRIL 7,2010
5.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
6.PRESENTATION ON HELIX WATER DISTRICT'S EL MONTE VALLEY PROJECT
(CARLOS LUGO,DIRECTOR OF ENGINEERING FOR HELIX WATER DISTRICT)
CONSENT CALENDAR
7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PAR-
TICULAR ITEM:
a)ADOPT RESOLUTION NO.4156 OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY
WATER DISTRICT AND IMPROVEMENT DISTRICT NO.14 OF THOSE
LANDS DESCRIBED AS "SAMIR AND BEATRIX FARHAT SEWER AN-
NEXATION"
b)REPORT ON DIRECTOR'S EXPENSES FOR THE 4TH QUARTER OF FIS-
CAL YEAR 2010
c)RECEIVE THE DISTRICT'S INVESTMENT POLICY,POLICY 27,FOR RE-
VIEW AND RE-DELEGATE THE AUTHORITY FOR ALL INVESTMENT RE-
LATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER IN ACCOR-
DANCE WITH GOVERNMENT CODE SECTION 53607
1
d)ADOPT RESOLUTION NO.4165 IMPLEMENTING LOAN PROVISIONS
FOR NATIONWIDE RETIREMENT SOLUTIONS AND ICMA RETIREMENT
CORPORATION 457 DEFERRED COMPENSATION pLANS
e)ADOPT ORDINANCE NO.526 AMENDING SECTION 5,CONFLICT OF IN-
TEREST CODE,OF THE DISTRICT'S CODE OF ORDINANCES TO EX-
PAND THE LIST OF POSITIONS REQUIRED TO FILE A FORM 700
f)DENY MARIO LUZANO'S REQUEST TO BACK-DATE HIS CAPACITY FEE
PRIOR TO THE JULY 1,2010 FEE INCREASE AND APPROVE A DEFER-
RAL AGREEMENT BETWEEN THE DISTRICT AND MR.LUZANO
SHOULD HE REQUEST IT
ACTION ITEMS
8.BOARD
a)DISCUSSION OF 2010 BOARD MEETING CALENDAR
INFORMATIONAL ITEMS
9.FISCAL YEAR 2010 4th QUARTER CAPITAL IMPROVEMENT PROJECT UP-
DATE REPORT (RIPPERGER)
10.REPORT ON THE CURRENT STATUS OF COLLECTIONS ACTIVITY AND
WRITE-OFFS (MENDEZ-SCHOMER)
REPORTS
11.GENERAL MANAGER'S REPORT
a)SAN DIEGO COUNTY WATER AUTHORITY UPDATE
12.DIRECTORS'REPORTS/REQUESTS
13.PRESIDENT'S REPORT
14.ADJOURNMENT
2
All items appearing on this agenda,whether or not expressly listed for action,may be
deliberated and may be subject to action by the Board.
The Agenda,and any attachments containing written information,are available at the
District's website at www.otaywater.gov.Written changes to any items to be considered at
the open meeting,or to any attachments,will be posted on the District's website.Copies
of the Agenda and all attachments are also available through the District Secretary by
contacting her at (619)670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting,please call the District Secretary at (619)670-2280 at least 24
hours prior to the meeting.
Certification of Posting
I certify that on August 27,2010,I posted a copy of the foregoing agenda near the-
regular meeting place of the Board of Directors of Otay Water District,said time being at
least 72 hours in advance of the regular meeting of the Board of Directors (Government
Code Section §54954.2).
Executed at Spring Valley,California on August 27,2010.
3
AGENDA ITEM 4
MINUTES OF THE
BOARD OF DIRECTORS MEETING OF THE
OTAY WATER DISTRICT
April 7,2010
1.The meeting was called to order by President Bonilla at 3:30 p.m.
2.ROLL CALL
Directors Present:Bonilla,Breitfelder,Lopez and Robak
Director Absent:Croucher (out-of-town on vacation)
Staff Present:General Manager Mark Watton,Asst.GM Administratio~
and Finance German Alvarez,Asst.GM Engineering and
Water Operations Manny Magana,General Counsel Yuri
Calderon,Chief of Information Technology Geoff Stevens,
Chief Financial Officer Joe Beachem,Chief of Engineering
Rod Posada,Chief of Operations Pedro Porras,Chief of
Administration Rom Sarno,District Secretary Susan Cruz
and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Breitfelder,seconded by Director Lopez and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Lopez and Robak
None
None
Director Croucher
to approve the agenda.
5.WATEREUSE 2009 RECYCLED WATER STAFF PERSON OF THE YEAR
AWARD PRESENTED TO LARRY OLDS,LEAD RECYCLED WATER
DISTRIBUTION OPERATOR
Assistant General Manager Manny Magana indicated that Mr.Larry Olds,Lead
Recycled Water Distribution Operator,received the WateReuse 2009 Recycled
Water Staff Person of the Year Award.He indicated that Mr.Olds has been
working with the WateReuse Association for 18 years and in recognition of his
dedication to the local chapter,they have honored him with their award.It was
noted that Mr.Olds puts a lot of volunteer time into the WateReuse Association
and he is the "go to"person in the region for recycled water.
1
6.APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF OCTOBER
7,2009
Director Breitfelder indicated that he would be abstaining as he did not attend the
October 7,2009 board meeting.
A motion was made by Director Robak,seconded by Director Lopez and carried
with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Lopez and Robak
None
Director Breitfelder
Director Croucher
to approve the minutes of the regular meeting of October 7,2009.
7.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
CONSENT CALENDAR
8.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST
IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A
PARTICULAR ITEM:
A motion was made by Director Breitfelder,seconded by Director Lopez and
carried with the following vote:
Ayes:
Noes:
Abstain:
Absent:
Directors Bonilla,Breitfelder,Lopez and Robak
None
None
Director Croucher
to approve the following consent calendar item:
a.APPROVE AN AGREEMENT WITH HELIX WATER DISTRICT FOR THE
CONSTRUCTION,OPERATION,AND MAINTENANCE OF TWO (2)
NEW METERED INTERCONNECTIONS
ACTION ITEMS
9.BOARD
a)DISCUSSION OF 2010 BOARD MEETING CALENDAR
2
Director Breitfelder indicated that it has been custom,due to the elections,to
reschedule the June board meeting.It was discussed that th~board will further
discuss the possible change in the date of the June meeting at the May board
meeting.If necessary,it will be reset at that meeting.
INFORMATIONAL ITEMS
10.FISCAL YEAR 2010 MID-YEAR STRATEGIC PLAN PERFORMANCE UPDATE
Chief of Information Technology Geoff Stevens indicated that staff presents a
Strategic Plan update twice a year and this is the mid-year Strategic Plan
performance update.He indicated that this presentation has been provided to
both District committees;Finance,Administration and Communications;and
Engineering,Operations and Water Resources Committees.He noted that th~
repetition of the Business Planning Process is the strength of the Strategic Plan.
He stated that the District's overall performance is above target at 94%or 46 of -
49 of the District's objectives are either completed,ahead of schedule or on
target (with the target at 90%).He noted that the District's Performance
Measures are also above target at 84%or 37 of 44 performance measures either
completed,ahead of schedule or on target (with the target at 75%).
The Strategic Plan also looks at the District's performance in more detail in two
views;Balanced Scorecard and Department View.Balanced Scorecard looks
across the enterprise from an external perspective;Customer,Financial,
Learning and Growth,and Business Processes.In this view,the District did not
meet or exceed the target measure of 90%in one area,Customer Service.
Customer Satisfaction was rated at 87%and Unplanned Disruptions was also
slightly below target.Within the Department View there were two projects in the
area of Information Technology that were delayed.The bid was delayed for the
PBX Upgrade Project and the integration of the SCADA System and the GIS
Modeling System also missed its target date.Staff has addressed these delays
and the projects are now moving forward.
He indicated per the Enhanced Review Process,every report is read in detail
and the responses are reformatted so that staff must report an actual number to
make it very clear whether a target is met or not.Staff will also be reviewing the
Strategic Plan for the next three-year timeframe in Fiscal Year 2011.Staff
anticipates presenting the proposed Fiscal Years 2011-2014 Strategic Plan to the
board in during a workshop in the fall.Staff will be presenting ideas and receive
input from the board in terms of the direction staff should be focusing in the next
three-year plan.He sated that staff will also be exploring the relationship
between Asset Management and the Strategic Plan as both are very critical to
the District's future direction.
In response to an inquiry from Director Robak,Chief of Information Technology
Stevens indicated that staff tries to set the goals for the three-year period,
however,targets are reviewed every year and they are revised if needed.He
stated for example if the District is consistently above or below QualServe target
3
ratings,the District may adjust its own targets.He noted that reporting is done
quarterly.Director Robak also inquired where the District is in.terms of
participating in the peer review process.Chief of Information Technology
Stevens indicated that the District has been putting a lot of effort into the Asset
Management System which requires reviewing many of the District's business
processes.He stated that staff would like to get some of the Asset Management
work in place and anticipates that the District would participate in the Peer
Review Process in approximately a year from now.Staff feels that the District is
going to change a lot as a result of the Asset Management System and felt it did
not make sense for someone to come in and tell the District how it should
change,when staff is already aware of what those changes should be.It is felt
that the District would get the full value of the Peer Review once staff has
implemented some of the things that are obvious.He noted that staff had
requested that the funds for the Peer Review Process be moved to the Fiscal -----::
Year 2011 budget.It is still planned,but has been delayed about six to seven
months.
REPORTS
11.GENERAL MANAGER'S REPORT
SAN DIEGO COUNTY WATER AUTHORITY UPDATE:
General Manager Watton indicated that the main focus at the County Water
Authority has been the Metropolitan Water District rates.He indicated that CWA
has been challenging their proposed rates,but has not been successful.CWA
will be opposing the rates as they disadvantage CWA in the way MWD proposes
to charge for wheeling.He also shared that CWA issued $630 million in bonds at
4.03%which will fund the capital improvement programs for the next couple
years.
GENERAL MANAGER'S REPORT:
General Manager Watton indicated that he had a conversation with Director
Breitfelder regarding apartment metering and billing.He indicated that much of
the new apartments that are being constructed are being individually metered as
they are built to be sold as condominiums sometime in the future.He indicated
that there are also bUildings that are sub-metered which are acceptable as long
as they are not marking up the cost of the water.He indicated that he did not
believe that there is anything in our code or state law that would preclude
apartment buildings from installing meters to encourage conservation.
He stated that the 36-inch potable pipeline is about 50%complete and the
project is going well.He commended Communications Officer Armando Buelna,
the Engineering staff,the construction crew,and all the people that are involved
in the project.He indicated that the community has been so well informed on the
schedule and status of the project and it is this reason that the District has not
4
received any major complaints from the community regarding the project,even
when work was being done during the night.
He stated that Director Bonilla and he met with La Mesa Mayor,Art Madrid,who
had an opportunity to tour the Water Conservation Garden.Mayor Madrid had
known about the garden and it seemed he gained a new appreciation for the
Garden following his tour.He also shared that the Water Conservation Garden is
taking a different approach to its funding,programs and becoming more self-
sufficient and he felt that it is working well.He noted that Mayor Madrid's
reaction is a good barometer of how well the programs are working and the
impact the Garden makes on visitors.
He indicated that the District is currently in conformance with the Governor's
DWR 20%by 2020 program as the District's customers are continuing to
conserve.He stated that the District's Water Conservation Manager was asked
to serve on the Urban Stakeholders Committee.He indicated that he is looking -
forward to the District's Conservation Manager having some insight and influence
on the programs being proposed by the State.
He indicated with regard to cell site lease evaluations that the leasing revenue
from cell sites and the golf course is approximately $1 million annually.Staff has
engaged a consultant,Telkin Associates,who are experts in telecom leases to
advise the District on how it can maximize its cell site revenues.
He stated that water sales are under budget and under CWA's allocation as the
District's customers continue to conserve.He indicated that he felt that the
conservation is being driven by the increase in the cost of water.
General Manager Watton indicated that the effective interest rate for the District's
bond issuance for $51 million was 4.176%.These results are excellent
especially when compared to CWA's recent issue for $630 million at 4.03%.He
noted that the District hit the market at a very good time,as immediately following
the sale,interest rates started to trend upward.
He also shared that Fitch Ratings had interviewed members of the District's staff
and they intend to upgrade the District's rating to AA.He stated that the review
is part of their routine process and they have been evaluating many of the
municipal agencies.The new rating will be effective at the end of April 2010.
He stated that Director Bonilla and he had met with City of San Diego
Councilmember Ben Hueso and Councilmember Hueso had indicated that he
had been informed by City of San Diego staff that the District was lagging on the
Water Supply Assessments (WSA)for the Cross Border Terminal for the
Rodriguez Airport.He stated that he wished to share with the board an update
should they hear comments about this issue.He indicated that the District has
not yet received the request for a Water Supply Assessment on the Cross
Boarder Terminal for the Rodriguez Airport from the City.Staff has been in
contact with the City and has indicated that as soon as the request is received,
5
the District would process a WSA for the project.With regard to the Brown Field
development,the City is taking a unique approach and plans t9 approve the large
development in a way that they have not done in the past and will be pulling
building permits for sections of the development.This will result in potential
water use that will range from 2,000 AF to 9,000 AF which will make it difficult to
write a WSA because of the large range of potential water use.He stated that it
is questionable on how they would magisterially provide permits for such
variability in water use.The District has been communicating with the City to
request additional information and have made them aware that the District is
unsure how it will write a WSA for such a large water use range.
12.DIRECTORS'REPORTS/REQUESTS
Director Breitfelder indicated that he met with the San Diego Apartment
Association and they discussed their proposed process for sub-metering
apartments.He indicated that sub-metering is intended to encourage
conservation and,on the surface,he did not see any issue with it and felt it could
be a valuable tool.He stated that there is concern among individual owners that
there is no ordinance in the State or locally that forbids it nor is there one that
specifically permits it.Director Breitfelder indicated that assuming that there is
no negative information about sub-metering,if the San Diego Apartment
Association brings this issue to the District,that he would like to suggest that the
District add some language to its ordinances that notes sub-metering as a
legitimate tool,but not requiring or encouraging their use.
Director Lopez indicated that he wished to thank the board president for the
opportunity to discuss the desalination project with General Counsel and have
any questions or concerns addressed.
Director Robak indicated,in follow-up to Director Breitfelder's comments with
regard to the San Diego Apartment Association,that he too had met with the
association regarding the same issue.He had indicated to them when they met
that they needed to research what the County's and other District's ordinances
are with regard to sub-metering.He noted that,at the time that they met,they
did not know what the County's ordinance was on the issue.He commended
staff on the District's Fitch rating upgrade and their work on acquiring the
upgrade.He stated that the earthquake was a wake-up call and that it highlights
the need for the District to be ready for a catastrophe.
13.PRESIDENT'S REPORT
President Bonilla commended the employees of the District for their work and he
stated that it is because of their work that the District has been recognized with
awards from various agencies and organizations.He stated that it is for this
reason that he would like to have staff involved in the award dinners as he felt
that they should accept the awards on behalf of the District.He stated it is
because of their work that the awards are received and he wished to thank staff
for their efforts and dedication to the District.He also reported that he met with
6
key staff from the office of the Governor of Baja on March 1,2010 regarding the
desalination project and that it was,overall,a very positive m~eting.On March
12,he and General Manager Watton met with City of San Diego Councilmember
Ben Hueso regarding Otay and City matters.He also met with City of Chula
Vista Mayor Cheryl Cox along with General Manager Watton on March 17 to
discuss matters of interest to both the City and Otay.He indicated that she was
very complimentary of Otay and the work it is doing and of its support of the City.
He and General Manager Watton also met to discuss committee agenda issues.
On March 18,he attended the District's Finance,Administration and
Communications Committee to discuss and make recommendations on issues to
be presented at today's board meeting.He stated that he met with Cox
Communication's representatives on March 19 to discuss their various services
and how they may meet District needs.He also shared that he and General
Counsel Calderon traveled to Mexico City from March 24 to 26 to meet with -----::
various individuals to discuss issues related to an item scheduled for discussion
in today's closed session.President Bonilla also noted that he attended the
Southwestern College Scholarship Foundation event on March 27 along with
directors and staff.He indicated that he attended the Legal Ad Hoc Committee
meeting scheduled on March 31 to discuss legal issues and matters related to
today's closed session agenda item.He also congratulated Lead Recycled
Water Distribution Operator Larry Olds on the award he received from the
WateReuse Association.
RECESS TO CLOSED SESSION
14.CLOSED SESSION
The board recessed to closed session at 4:12 p.m.to discuss the following item:
a)CONFERENCE WITH REAL PROPERTY NEGOTIATORS
[GOVERNMENT CODE §54956.8]
PROPERTY:INTENT TO PURCHASE WATER FROM A NEW SOURCE
AGENCY NEGOTIATORS:MARK WATTON,YURI CALDERON &
BONIFACIO GARCIA
NEGOTIATING PARTIES:GOUGH THOMPSON,NS AGUA,AND
OTHER POTENTIAL SOURCES OF POTABLE WATER AND/OR THEIR
DESIGNATED REPRESENTATIVES,SUCCESSORS OR OTHER
AUTHORIZED ENTITIES
UNDER NEGOTIATION:PRICE AND TERMS OF ACQUISITION,
INCLUDING BUT NOT LIMITED TO TIMING AND AMOUNT OF
ACQUISITION
RETURN TO OPEN SESSION
7
15.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLQSED SESSION
The board reconvened at 5:29 p.m.and General Counsel Calderon indicated that
the board took no reportable actions in closed session.
16.ADJOURNMENT
With no further business to come before the Board,President Bonilla adjourned
the meeting at 5:29 p.m.
President
ATTEST:
District Secretary
8
AGENDA ITEM 7a
5TAFF REPORT
50210-20.290W.O.lG.F.NO:
MEETING DATE:September 1,2010
DIV.NO.David Charles,PUb)f,f/
Services Manager 1~
Rod Posada,Chief of Engineering~~APPROVED BY:
(Chief)
TYPE MEETING:Regular Board
SUBMITTED BY:
APPROVED BY:
(Ass!.GM):
SUBJECT:
Manny Magana,Asst.General Manager of Engineering &
Operations ~~
Samir &Beatrix Farhat Sewer Annexation to the Otay Water
District and to Improvement District 14
GENERAL MANAGER'S RECOMMENDATION:
Adopt Resolution No.4156,the annexation of the property of Samir
and Beatrix Farhat to the District and to Improvement District No.14
(Attachment B).
COMMITTEE ACTION:
See Attachment "A."
PURPOSE:
The purpose of the proposed annexation is to make sewer service
available to a parcel owned by Samir and Beatrix Farhat (Property
Owners).
ANALYSIS:
Property owners are requesting that their 1.30-acre real property,
identified by APN 496-080-17-00,be annexed into the District and to
Improvement District No.14 to make sewer service available to said
parcel due to their failing septic system.The parcel is currently
outside the District's sphere of influence as well as Otay's
Improvement District No.14.Therefore,annexation of this property
to the District,and to Improvement District No 14 to qualify for
sewer services,is necessary.
Due to the health and safety hazard caused by the failing septic
system on the property (Refer to Attachment C),the Executive Officer
of the Local Agency Formation Commission (LAFCO)issued a Certificate
of Administrative Approval of a Contractual Service Agreement on
March 29,2010 to enable the property owner to connect to the
District's public sewer system (Refer to Attachment D).This
Agreement allows the property owners to hook-up to the District's
sewer system on an emergency basis prior to annexati~n approval by
the District and LAFCO.
At its August 2,2010 meeting,LAFCO granted its approval of the
annexation of the property to the District in accordance with the
provisions of the Government Code.It is recommended that the Board
adopt Resolution No.4156 (Attachment B),annexing the property of
Samir and Beatrix Farhat to the District and to Improvement District
No.14.
The property receives water from the Helix Water District.This
annexation will not create an -island.The property is located at
10440 Russell Road,in the City of La Mesa and County of San Die~
FISCAL IMPACT:~-
The property owners will be charged $39 per year for availability
fees plus a charge of $54 per ASU per year.
STRATEGIC GOAL:
Provide sewer service to meet increasing customer needs.
LEGAL IMPACT:
G:\UserData\DistSeC\WINWORD\STAFRPTS\Annexation Farhat Sewer 3-3-10 doc
ATTACHMENT A
Samir and Beatrix Farhat Sewer Annexation to ID 14 and to
SUBJECT/PROJECT:the Otay Water District
COMMITTEE ACTION:
The Engineering,Operations,and Water Resources Committee
reviewed this item at a meeting held on August 19,2010 and the
following comments were made:
•Staff is requesting that the Board adopt Resolution No.
4156,annexing the property of Samir and Beatrix Farhat
(Property Owners)into the District and to Improvement
District (ID)No.14.
•Staff indicated that due to the failed septic system,the
property owners are requesting that their 1.30-acre
parcel,identified by APN 496-080-17-00,be annexed into
the District and to ID No.14 to make sewer service
available to the property.
•Staff noted that on March 29,2010,the Local Agency
Formation Commission (LAFCO)issued a Certificate of
Administrative Approval of a Contractual Service
Agreement between the District and Property Owners
allowing an emergency hook-up to the District's system,
prior to approval of their property's annexation,due to
health and safety concerns.
•Staff indicated that LAFCO granted its approval of the
annexation on August 2,2010,and is recommending that
the District's Board adopt Resolution No.4156 to
approving the annexation.
Following the discussion,the Committee supported staffs'
recommendation and presentation to the full board as a consent
item.
Attachment B
RESOLUTION NO.4156
A RESOLUTION OF THE BOARD OF DIRECTORS OF
OTAY WATER DISTRICT APPROVING THE ANNEXATION
TO OTAY WATER DISTRICT AND IMPROVEMENT
DISTRICT NO.14 OF THOSE LANDS DESCRIBED AS
"SAMIR &BEATRIX FARHAT SEWER ANNEXATION"
(FILE NO.0210-20.290/DIV.5)
WHEREAS,a letter has been submitted by Samir and Beatrix
Farhat,the owners and party that has an interest in the land
described in Exhibit "A,"attached hereto,for annexation of said
land to Otay Water District and Improvement District No.~
pursuant to California Water Code Section 72670 et seq.;and
WHEREAS,pursuant to Section 72680.1 of said Water Code,the
Board of Directors may proceed and act thereon without notice and
hearing.
NOW,THEREFORE,THE BOARD OF DIRECTORS OF THE OTAY WATER
DISTRICT FINDS,RESOLVES,ORDERS AND DETERMINES as follows:
1.A depiction of the area proposed to be annexed,and the
boundaries of ID 14 following the annexation,is set forth on a
map filed with the Secretary of the District,which map shall
govern for all details as to the area proposed to be annexed.
2.The purpose of the proposed annexation is to make sewer
service available to the area to be annexed,which availability
constitutes a benefit to said area.
3.The Board finds and determines that the area proposed
to be annexed to ID 14 will be benefited by such annexation and
that the property currently within ID 14 will also be benefited
and not injured by such annexation because after the annexation a
larger tax base will be available to finance the sewer facilities
and improvements of ID 14.
Page 1 of 3
4.The Board of Directors hereby declares that the annexa-
tion of said property is subject to the owners complying with the
following terms and conditions:
(a)The petitioners for said annexation shall pay to
Otay Water District the following:
(1)Standard processing fee in the amount of
$692.00;
(2)State Board of Equalization filing fees in
the amount of $350;
(3)A sewer annexation fee of $5,443 per EDU to
be collected at the time of connection to the
Otay Water District sewer system;
(4)Yearly assessment fees will be collected
through the County Tax Assessor's office in
the amount of $39 for APN 496-080-17-00;
(5)Payment by the owners of APN 496-080-17-00 of
all other applicable local or state agency
fees or charges including a charge of $54 per
ASU annually.
(b)The property to be annexed shall be subj ect to
taxation after annexation thereof for the purposes
of the improvement district,including the payment
of principal and interest on bonds and other
obligations of the improvement district,author-
ized and outstanding at the time of annexation,
the same as if the annexed property had always
been a part of the improvement district.
Page 2 of 3
5.The Board hereby declares the property described in
Exhibit "A"shall be considered annexed to the boundaries of the
District and ID 14 upon passage of this resolution.
6.The Board of Directors further finds and determines
that there are no exchanges of property tax revenues to be made
pursuant to California Revenue and Taxation Code Section 95 et
seq.,as a result of such annexation.
7.The annexation of APN 496-080-17-00 to the District is
hereby designated as the "SAMIR &BEATRIX FARHAT SEWER
ANNEXATION."
8.Pursuant to Section 572029 (c)of the Government Code,
the effective date of the SAMIR &BEATRIX FARHAT SEWER ANNEXATION
shall be the date this Resolution is adopted by the Board of
Directors of the Otay Water District.
9.The General Manager of the District and the Secretary
of the District,or their respective designees,are hereby
ordered to take all actions required to complete this annexation.
PASSED,APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting held this 1st day of
September,2010.
President
ATTEST:
District Secretary
Page 3 of 3
o 90 180 360 540 720~P'"""~_iiiiil-~-liii~~~§__iiiiil~~~iFeet
I_I SAMIR &BEATRIX FARHAT
DEVELOPER:
PROJECT#:
APN:
AREA:
ADDRESS:
OWNER:
DIR:
SID:
DATE:
Samir &Beatrix Farhat
File No.0210-20.290
496-080-17-00
1.30 ACRES
10440 RUSSELLRD
LA MESA,CA 91941
Samir &Beatrix Farhat
DIV.5
14
8/11/2010
LOCATION MAP
JELMRBEA
LEGAL DESCRIPTION
ANNEXATION PARCEL
Otay Water District I.D.14
A PORTION OF THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 OF SECTION 22,TOWNSHIP 16 SOUTH,
RANGE I WEST,SAN BERNARDfNO MERIDIAN,ACCORDING TO THE OFFICIAL PLAT THEREOF;AS
SHOWN ON ROS 3401,AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT WHICH BEARS N70049'W 519.33 FEET FROM THE CENTER OF SAID SEc:.Il..ON
22,SAID POINT BEING THE NORTHERLY TERMINUS OF A 300 FOOT RADIUS CURVE IN THE CENTER
LINE OF THE COUNTY ROAD KNOWN AS AND SHOWN ON THE MAP THEREOF AS ROAD SURVE~
NO.563,SAID MAP BEING FILED IN THE OFFICE OF THE COUNTY SURVEYOR OF SAN DIEGO
COUNTY;THENCE ALONG SAID CENTER LINE OF ROAD SURVEY NO.563,N25°3O'W 1117.82 FEET
(COMPUTED FROM RECORD 1118.42 FEET)TO ENGINEER'S STATION 22 PLUS 72,48:THENCE
N83°45'E 473.11 FEET TO POINT "A"OF THIS DESCRIPTION;THENCE CONTINUING N83°45'E 315.43
FEET;THENCE N9°11'50"E 301.76 FEET TO THE TRUE POINT OF BEGINNING;THENCE CONTINUING
N9°11'50"E 71.13 FEET TO THE EASTERLY PROLONGATION OF A LINE WHICH [S PARALLEL WITH
AND 25 FEET SOUTHERLY AT RIGHT ANGLES FROM THE SOUTHERLY LINE OF THE LAND
DESCRIBED UNDER PARCEL 1 OF DEEDS TO RUSSELL ALLESIO AND WIFE.RECORDED JULY 2.
1951,AS FILE NO.81437,IN BOOK 4154,PAGE 418.OF OFFICIAL RECORDS:THENCE ALONG SAID
EASTERLY PROLONGATION AND SAID PARALLEL LINE N86°43'30"W 161.83 FEET.TO AN ANGLE
POINT IN SAID PARALLEL LINE:THENCE ALONG SAID PARALLEL LINE AND THE
NORTHWESTERLY PROLONGATION THEREOF N53°58'W 234.00 FEET TO THE BEGINNING OF A
TANGENT 100.00 FOOT RAD[US CURVE CONCAVE EASTERLY;THENCE NORTHWESTERLY ALONG
SAID CURVE 79.99 FEET THROUGH AN ANGLE OF 45°49'50";THENCE RADIAL TO SAID CURVE
S81 °51 '50"W 32.65 FEET TO A LINE WHICH BEARS N4°41 '20"W FROM SAID POINT "A"THENCE
S4°-+1'20"E 299.50 FEET TO A LINE WHICH BEARS S87°09'W FROM THE TRUE POINT OF BEGINNING;
THENCE N87°09'E 387.92 FEET TO THE TRUE POINT OF BEGINNING.
~Allen R..~.L LS7ii4 ~{)9
DATE
~[f\I)[CATES AN'EXATION AREA (I.D.14 >
\
--s-"""Gs ~'-----""",,-..::.~...~~~..~
J.0,~~~~Y~'j1J~
INC
8707 La Mesa Blvd (619)465-8948
La Mesa.Calif.91941 FAX(619)465-8410
~·49'50"
R=100.00'--
L=79.99 ,
VICINITY MAP
NO SCALE
]-8
_OTAYWATERDISTRICT
A PORnON OF THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 OF SECnON 22,TOWNSHIP
16 SOUTH,RANGE 1 WEST.SAN BERNARDINO MERIDIAN,IN THE COUNTY OF SAN DIEGO,
STA TE:OF CALIFORNIA .
RECtRlERS F/P MAP NO.R.O.S.3401
RECCRJ I NG OA TE SCALE:1"=100
OTAY W.O.DEED NO.DA TE:11- 1-09
ltoP.DIST.NO.DRAWN BY:ART
REV DATE DESCRIPTION ASSESSORS PARCEL NO.496-080-17 JOB NO.:190707
Attachment C
GARY W,ERBECK
DIRECTOR
May 23.2008
Sam Farhat
10440 Russell Rd.
La Mesa,CA 91941
Dear Mr.Farhat:
(([nunt~of ~a:n ~i.egn
DEPARTMENT OF ENVIRONMENTAL HEALTH
LAND AND WATER QUALITY DIVISION
200 EAST MAIN.6TH FLOOR.EL CAJON,CA 92020
619·441·4030/FAX 619·441·4411/1·800·253.9933
www.sdcounty.ca.govldeh/lwq
JACK MILLER
ASSISTANT DIRECTOR
APN #496-080-17-00,10440 Russell Lane,La Mesa
This letter is to follow up our meeting at the above referenced parcel on May 22,2008.That meeting was a
consultation to discuss options to repair the on-site sewage disposal system or to connect to sanitary public
sewer.
It was observed during the meeting that your existing on-site sewage disposal system is currently failing.
There is sewage effluent surfacing on your parcel and running offyour parcel into the street.There is very little
to no usable area to make a repair to the existing system due to the existing cut slope for the street and its
accompanying setback requirements.
There is however,a large area of space up the hill behind the dwelling that would be classified suitable for
septic by this office.While this space would be classified suitable there are certain limitations on this space.
The area has a 35%slope which is classified as steep slope and would require our steep slope policy to be
used.The steep slope would also present some installation concerns.This area would also require that a
pump system be utilized for the on-site sewage system.This would add some on-going maintenance
requirements to keep the pump system functional.
Another option that could be considered would be to test for horizontal seepage pits.Horizontal seepage pits
require a percolation rate of 30 minutes per inch or faster soils,Based on percolation tests in surrounding
properties,the chances for suitable soils would be below average.
The last option,one with which you have already been exploring,is to annex into a sanitation district and hook
up to public sewer,This would not require any percolation testing or the need to a pump system design,but
would include annexation and connection fees from the sewer district.
Should you have any questions.please feel free to call me at (619)441-4243.
Lance A.DeClue,REHS
Environmental Health Specialist II
"Environmental andpublic health through leadership,partnership andscience"
i:o'l..Oi:o'ESi:o'-61S eq....: n T I=:n ",n I\OLI
03/29/2010 13:40 5195574190 LAFCO PAGE 02/02
Attachment D
SAN DIEGO COUNTY
LOCAL AGENCY FORMATION COMMISSION
CERTIFICATE q>F ADMINISTRATIVE APPROVAL OF A
CONT1CTUAL SERVICE AGREEMENT
Ota1water District I Samir Farhat
(Ref.No.:OAS10-03)
I hereby certify that I have xamined the above~cited agreement and have found
it to be substantially in compliance with Government Code Section 56133 and the
Commission's policies a1procedures.This Certificate of Administrative
Approval of a Contractual ervice Agreement is therefore issued.
The name of each city nd/or district included in the contractual service
agreement,ali located with n San Diego County,and the type of services to be
provided is as follows:.
District
Otay Water District
Service to be Provided
Sewer Service
A legal description and map of the boundaries of the above-cited contractual
service agreement area and a copy of the agreement signed by all parties are
avail,able in the LAFCO office.The terms and conditions,if any,are contained in
the agreement.The affected property consists of 1.36 acre located at 10440
Russell Road,La Mesa,CA 91941 (Assessor Parcel Number 496-080-17)(Thos.Bros.
Pg.1271 /E2).
Administrative approval to provide service through a contractual service
agreement has been granted because an on-site,subsurface sewage system
has failed as documented in a letter,dated May 3,2008,by the County
Department of Environmental Health "recommending that the property be
connected to a public sewer system.
The Executive Officer has made a determination that this
annexation/reorganization is exempted from the requirements of CEQA by
Section 15319(a)of the State CEQA Guidelines.
-~
MICHAEL D.OTT
Executive Officer
Date:March 29,2010
AGENDA ITEM 7b
5TAFF REPORT
TYPE MEETING:
SUBMITTED BY:
Regular Board
Sean Prendergast,
MEETING DATE:
W.O.lG.F.NO:
September 1,2010
DIV.NO.All
APPROVED BY:
(Chief)
APPROVED BY:
(Asst.GM):
SUBJECT:
payroll/~~~~ervisor
Joseph R.~~chem,Chief Financial Officer
German Al~ssistant General Manager,Administration and
Finance
Director's Expenses for the 4th Quarter of Fiscal Year 2010
GENERAL MANAGER'S RECOMMENDATION:
This is an informational item only.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To inform the Board of the Director's expenses for the 4th
quarter of Fiscal Year 2010.
ANALYSIS:
The Director's expense information is being presented in order
to comply with State law.(See Attachment B for Summary and C-H
for Details.)
FISCAL IMPACT:~
None.
STRATEGIC GOAL:
Prudently manage District funds.
LEGAL IMPACT:
Compliance with State law.
Attachments:
A)Committee Action Form
B)Director's Expenses and per Diems
C-H)Director's Expenses Detail
ATTACHMENT A
SUBJECTIPROJECT:Director's Expenses for the 4th Quarter of Fiscal Year 2010
COMMITTEE ACTION:
This item was presented to the Finance,Administration and
Communications Committee at a meeting held on August 23,2010.
The expenses for each director from April 1,2010 thru June 30,
2010 was presented.It was indicated that directors'expenses-
totaled $5,311.50 for the 4th quarter and totaled $19,872.40 for
Fiscal Year 2010.It was indicated that directors expenses are
80%lower in 2010 as compared to 1999.The committee requested
that staff provide comparative board expense information from
similarly sized agencies,such as,Helix WD,Padre Dam MWD,
Sweetwater Authority,Olivenhain MWD and Vallecitos MWD.The
committee recommended that this item be presented to the full
board as an action item.
Y:\Board\CurBdPkg\FINANCE\CommMtgDirExp090110.doc
ATTACHMENT B
BOARD OF DIRECTORS'
EXPENSES AND PER-DIEMS
BOARD OF DIRECTORS'MEETING
SEPTEMBER 1,2010
I L
Policy 8 requires that staff present the Expenses and
Per-Diems for the Board of Directors on a Quarterly
basis:
•Fiscal Year 2010,4th Quarter.
•The expenses are shown in detail by Board
member,month and expense type.
•This presentation is in alphabetical order.
•This information was presented to the Finance,
Administration,and Communications Committee
on August 23,2010.
I L
Board of Directors'Expenses and Per-Diems
Fiscal Year 2010 Quarter 4 (Apr 10-Jun 10)
•Director Bonilla
•Director Breitfelder
• .Director Croucher
•Director Lopez
•Director Robak
•Total
$200.00
$2,320.00
.$1,100.00
$883.50
$808.00
$5,311.50
I L
Director Bonilla
Fiscal Year 2010 Quarter 4
Apr 10 May 10 lun 10
Business Meetings 0.00 0.00 0.00
Director's Fees 0.00 0.00 0.00
Mileage Business 0.00 0.00 0.00
Mileage Commuting 0.00 O~OO 0.00
Seminars and Travel 0.00 200.00 0.00
Monthly Totals
Quarterly Total
Fiscal Year-to-Date 2010 (Jul 09-Jun 10)
200.00 0.00
$200.00
$220.00
Director Bonilla does not request per diem reimbursements
Meetings Attended
Meetings Paid I
I l
Director Breitfelder
Fiscal Year 2010 Quarter 4
Apr 10 May 10 Jun 10
Business Meetings 0.00 39.00 0.00
Director's Fees 300.00 1,000.00 500.00
Mileage Business 17.00 107.00 37.00
Mileage Commuting 30.00 45.00 45.00
Seminars and Travel 0.00 200.00 0.00
Monthly Totals
Quarterly Total
Fiscal Year-to-Date 2010 (Jul 09-Jun 10)
347.00 1,391.00 582.00
$2320.00
$6,694.30
Meetings Attended 3 10 5
Meetings Paid 3 10 5
Director Croucher
Fiscal Year 2010 Quarter 4
Apr 10 May 10 lun 10
Business Meetings 0.00 0.00 0.00
Director's Fees 100.00 600.00 400.00
Mileage Business 0.00 0.00 0.00
Mileage Commuting 0.00 O~OO 0.00
Seminars and Travel 0.00 0.00 0.00
Monthly Totals
Quarterly Total
Fiscal Year-to-Date 2010 (Jul 09-Jun 10)
100,00 600,00 400,00
$1,100.00
$4,400.00
Meetings Attended 1 6 4
Meetings Paid 1 6 4
Director Lopez
Fiscal Year 2010 Quarter 4
Apr 10 May 10 lun 10
Business Meetings 0.00 0.00 0.00
Director's Fees 400.00 200.00 200.00
Mileage Business 0.00 16.50 0.00
Mileage Commuting 37.00 10.00 20.00
Seminars and Travel 0.00 0.00 0.00
Monthly Totals
Quarterly Total
Fiscal Year-to-Date 2010 (Jul 09-Jun 10)
437,00 226,50 220,00
883.50
$3,510.60
Meetings Attended 4 2 2
Meetings Paid 4 2 2
Director Robak
Fiscal Year 2010 Quarter 4
Apr 10 May 10 lun 10
Business Meetings 0.00 45.00 25.00
Director's Fees 200.00 300.00 200.00
Mileage Business 9.00 12.00 9.00
Mileage Commuting 2.00 4;00 2.00
Seminars and Travel 0.00 0.00 0.00
Monthly Totals
Quarterly Total
Fiscal Year-to-Date 2010 (Jul 09-Jun 10)
211.00 361,00 236,00
$808.00
$4,872.40
Meetings Attended 6 5 3
Meetings Paid 2 3 2
-----------~~-~---~-=---~
Board of Directors'Expenses and Per Diems
Fiscal Year 2010 to Date (Jul 09-Jun 10)
•Director Bonilla
•Director Breitfelder
•,Director Croucher
•Director Lopez
•Director Robak
•Total
$220.00
$6,694.30
$4,400.00
$3,510.60
$4,872.40
$19,697.30
I L
Board of Directors'Expenses and Per Diems
Fiscal Years 1999-2010
$120,000.----------------------------------------,
$103,678
$100,000
$80,000
$60,000
$40,000
$20,000
$0
1999 2000 2001 2002 2003 2004 2005 2006 20 7 2008 2009 2010
Board of Directors'Expenses and Per Diems
Fiscal Years 1999-2010
Directors'expenses declined more than 80 percent from 1999 to 2010.
The average expenses from 1999 to 2010 was $49,210.
This year's total is $19,697.
I L
$120,000 r----------:-----------~---------.
$103,678
$100,000 -+-----
$80,000 -j------
$60,000 +-----
$40,000 +-----
$20,000 -j-----
$0 -+-----
1999
Directors'Expenses
declined more than 80%
from 1999 to 2010
$19,697
2010
Board of Directors'Expenses and Per Diems
Fiscal Years 1999-2010
$120,000 ---.----------;;-------;----------------,
$100,000
$80,000
$60,000
$40,000
$20,000
$0
1999-2010 Average of $49,210
••
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
"-
SECTIONC
OTAYWATERDISTRICT
ADMINISTRATIVE EXPENSES -BOARD
July 1,2009 -June 30,2010
Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-l0 Feb-l0 Mar-lO Apr-l0 M!!::!J!Jnn-l0 Tot-al
JAIMEBONILLA (DETAILEDIN SECTION D):
5214 Businessmeetings $20.00 $20.00
5281 Director's tees
5211 Mileage-Business
5211 Mileage-Commuting
5213 Seminarsand conferences 200.00 200.00
5212 Travel
Total $20.00 $200.00 220.00
LARRYBREITFELDER (DETAILEDIN SECTIONE):
5214 Business meetings $25.00 $25.00 84.00 25.00 25.00 25.00 39.00 248.00
5281 Director's fees 600.00 300.00 500.00 500.00 200.00 400.00 400.00 500.00 300.00 1,000.00 500.00 5,200.00
5211 Mileage -Business 22,00 22.00 90.20 112.20 46.20 40.00 61.50 78.50 17.00 107.00 37.00 633.60
5211 Mileage -Commuting 82.50 37.40 37.40 18.70 18.70 34.00 34.00 30.00 30.00 45.00 45.00 412.70
5213 Seminars andconferences 200.00 200.00
5212 Travel
Total $704.50 25.00 384.40 627.60 714.90 289.90 474.00 520.50 $633.50 347.00 1,391.00 582.00 6,694.30
GARYD.CROUCHER(DETAILED INSECTIONF):
5214 Businessmeetings $$$
5281 Director'sfees 500.00 300.00 600.00 500.00 200.00 400.00 200.00 600.00 100.00 600.00 400.00 4,400.00
5211 Mileage-Business
5211 Mileage-Commuting
5213 Seminars andconferences
5212 Travel
Total $500.00 300.00 600.00 $500.00 200.00 400.00 200.00 600.00 100.00 600.00 400.00 $4,400.00
JOSE LOPEZ (DETAILEDINSECTION G):
5214 Business meetings $$$45.00 $45.00
5281 Director's fees 300.00 500.00 300.00 400.00 100.00 100.00 300.00 200.00 200.00 400.00 200.00 200.00 3,200.00
5211 Mileage -Business 13.20 20.90 16.50 50.60
5211 Mileage-Commuting 22,00 33.00 11.00 11.00 11.00 20.00 20.00 20.00 37.00 10.00 20.00 215.00
5213 Seminarsandconferences
5212 Travel
Total 3n.00 546.20 311.00 476.90 111.00 100.00 320.00 no.oo no.oo 437.00 226.50 no.oo 3,510.60
MARK ROBAK(DETAILED INSECTION H):
5214 Businessmeetings $20.00 20.00 20.00 200.00 640.00 20.00 25.00 $45.00 25.00 1,015.00
5281 Director'sfees 200.00 300.00 200.00 200.00 200.00 500.00 100.00 200.00 100.00 200.00 300.00 290.00 2,700.00
5211 Mileage-Business 20.35 45.10 3.30 18.70 101.75 121.30 3.00 33.50 3.00 9.00 12.00 9.00 380.00
5211 Mileage-Commuting 2.20 4.40 2.20 4.40 2.20 2.00 2.00 2.00 2.00 4.00 2.00 29.40
5213 Seminars and conferences 50.00 15.00 88.00 595.00 748.00
5212 Travel
Total 242.55 419.50 240.50 423.10 303.95 1,349.30 125.00 260.50 700.00 211.00 $361.00 $236.00 4,872.40
TOTALS:
5214 Business meetings 20.00 45.00 45.00 $245.00 104.00 665.00 20.00 $50.00 $25.00 84.00 25.00 $1,328.00
5281 Director'sfees 1,600.00 800.00 1,100.00 1,700.00 1,300.00 1,000.00 1,200.00 1,000.00 1,400.00 1,000.00 2,100.00 1,300.00 15,500.00
5211 Mileage -Business 42.35 58.30 25.30 129.80 213.95 167.50 43.00 95.00 ~81.50 26.00 135.50 46.00 1,064.20
5211 Mileage-Commuting 106.70 37.40 50.60 52.80 31.90 18.70 56.00 56.00 52.00 69.00 59.00 67.00 657.10
5213 Seminars and conferences 50.00 15.00 88.00 I -I 595.00 400.00 1,148.00
5212 Travel
Total 1,769.05 $990.70 1,235.90 2,127.60 $1,649.85 1,939.20 1,319.00 1,201.00 $2,153.50 1,095.00 2,778.50 1,438.00 19,697.30
~,~._,----------
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:BONILLA,JAIME ATTACHMENT D
11/19/2009 MEXICAN AMERICAN PROFESSIONAL ASSOCIATION EVENT $
Account Name
Business meetings
Seminars and
conferences
Grand Total
Date
5/26/2010
Descriptions
WATER EDUCATION FOUNDATION BINATIONAL
DESALINATION CONFERENCE -MAY 26 &27.2010
$
SECTION D
Amount
20.00
200.00
220.00
Jun 1O/Bonilla J Page 2 of Pages 12
Printed Date:
8/17/20103:53 PM
DIRECTOR'S NAME:
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
BREITFELDER,LARRY ATTACHMENT E
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION QUARTERLY 39.00
MEETING
COUNCIL OF WATER UTILITIES ---:::25.00
Account Name
Business meetings
Business meetings Total
Director's Fee
Date
8/18/2009
9/15/2009
11/17/2009
11/19/2009
12/15/2009
2/16/2010
3/16/2010
5/20/2010
7/1/2009
7/6/2009
7/7/2009
7/10/2009
7/20/2009
7/27/2009
9/2/2009
9/15/2009
9/28/2009
10/5/2009
10/7/2009
10/15/2009
10/20/2009
10/21/2009
11/3/2009
11/4/2009
11/9/2009
11/17/2009
11/19/2009
12/2/2009
Descriptions
COUNCIL OF WATER UTILITIES
COUNCIL OF WATER UTILITIES
COUNCIL OF WATER UTILITIES
MEXICAN AMERICAN PROFESSIONAL ASSOCIATION EVENT
COUNCIL OF WATER UTILITIES
COUNCIL OF WATER UTILITIES
CALIFORNIA SPECIAL DISTRICTS ASSOCIATION QUARTERLY
MEETING
REGULAR BOARD OF DIRECTORS MEETING
CONSERVATION ACTION COMMITIEE MEETING
INTRA SITE TOUR -DISTRICT FACILITY SITE (1296-3
RESERVOIR)
AD HOC LEGAL MATIERS COMMITIEE MEETING
GM REVIEW -AGENDA BRIEFING
ENGINEERING,OPERATIONS AND WATER RESOURCES
COMMITIEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
CONSERVATION ACTION COMMITIEE MEETING
ENGINEERING,OPERATIONS AND WATER RESOURCES
COMMITIEE MEETING
CONSERVATION ACTION COMMITIEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
ENGINEERING,OPERATIONS AND WATER RESOURCES
COUNCIL OF WATER UTILITIES
CONSERVATION ACTION COMMITIEE MEETING
CADS BOARD OF DIRECTORS MEETING
REGULAR BOARD OF DIRECTORS MEETING
CONSERVATION ACTION COMMITIEE MEETING
COUNCIL OF WATER UTILITIES
CADS BOARD OF DIRECTORS MEETING
ENGINEERING,OPERATIONS AND WATER RESOURCES
SECTION E
Amount
$25.00
25.00
25.00
20.00
25.00
25.00
39.00
248.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Jun 1O/Breitfelder L Page 3 of Pages 12
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:BREITFELDER,LARRY ATTACHMENT E
SECTION E
Account Name Date Descriptions Amount
12/15/2009 COUNCIL OF WATER UTILITIES 100.00
1/6/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
1/11/2010 CONSERVATION ACTION COMMITIEE MEETING 100.00
1/13/2010 WATER CONSERVATION GARDEN COMMITIEE MEETING 100.00
1/19/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
2/3/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
2/10/2010 WATER CONSERVATION GARDEN COMMITIEE MEETING 100.00
2/16/2010 COUNCIL OF WATER UTILITIES 100.00
2/19/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
3/3/2010 REGULAR BOARD OF DIRECTORS MEETING ---:-100.00
3/8/2010 CONSERVATION ACTION COMMITIEE MEETING 100.00
3/10/2010 WATER CONSERVATION GARDEN COMMITIEE MEETING -100.00
3/16/2010 COUNCIL OF WATER UTILITIES 100.00
3/18/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
4/7/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
4/14/2010 WATER CONSERVATION GARDEN COMMITIEE MEETING 100.00
4/20/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
5/5/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
5/17/2010 OTAY WATER DISTRICT BUDGET WORKSHOP 100.00
5/19/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
5/20/2010 CALIFORNIA SPECIAL DISTRICTS ASSOCIATION QUARTERLY 100.00
6/2/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
6/17/2010 SPECIAL REGULAR BOARD MEETING 100.00
5/26/2010 BINATIONAL DESALINATION CONFERENCE 200.00
6/15/2010 FINANCE AND ADMINISTRATIVE COMMITIEE MEETING 100.00
5/21/2010 LOCAL WATER RESOURCES INSPECTION TOUR SPONSORED 100.00
BY MWD AND CWA
5/4/2010 SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL BOARD 100.00
5/10/2010 WATER CONSERVATION ACTION COMMITIEE 100.00
6/14/2010 WATER CONSERVATION ACTION COMMITIEE 100.00
5/12/2010 WATER CONSERVATION GARDEN BOARD OF DIRECTORS 100.00
6/9/2010 WATER CONSERVATION GARDEN BOARD OF DIRECTORS 100.00
MEETING
Director's Fee Total 5,200.00
Jun 1O/Breitfelder L Page 4 ofPages 12
Printed Date:
8/17/20103:53 PM
DIRECTOR'S NAME:
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
BREITFELDER,LARRY ATTACHMENT E
Account Name Date
Mileage -Business 7/31/2009
9/28/2009
10/31/2009
11/30/2009
12/31/2009
1/31/2010
2/28/2010
3/31/2010
4/30/2010
5/31/2010
6/30/2010
Mileage -Business Total
Mileage -Commuting 7/31/2009
9/28/2009
10/31/2009
11/30/2009
12/31/2009
1/31/2010
2/28/2010
3/31/2010
4/30/2010
5/31/2010
6/30/2010
Mileage -Commuting Total
Seminars and conferen 5/26/2010
Seminars and conferences Total
Grand Total
Jun 10/BreitfelderL
Descriptions
MEETING -JULY 6,2009
MEETING -SEPT.15,2009
MEETING -OCT.5,20 &21,2009
MEETING -NOV.3,9,17&19,2009
MEETING -DEC.15,2009
MEETING -JAN.11 &13,2010
MEETING -FEB.10 &16 2010
MEETING -MARCH 8,10 &16,2010
MEETING -APRIL 14,2010
MEETING -MAY 10,12,20,21,26 &27,2010
MEETING -JUNE 9 &14,2010
MEETING -JULY 1,7,10,20 &27,2009
MEETING -SEPT.2 &28,2009
MEETING -OCT.7 &15,2009
MEETING -NOV.4,2009
MEETING -DEC.2,2009
MEETING -JAN.6 &192010
MEETING -FEB.3 &19 2010
MEETING -MARCH 3,8,10,16 &18,2010
MEETING -APRIL 7 &20,2010
MEETING -MAY 5,17 &19,2010
MEETING -JUNE 2,15 &17,2010
WATER EDUCATION FOUNDATION BINATIONAL
DESALINATION CONFERENCE -MAY 26 &27.2010
Page 5 of Pages 12
SECTION E
Amount
22.00
22.00
90.20
112.20
46.20
40.00
61.50
78.50
17.00
---=-107.00
37.00
_633.60
82.50
37.40
37.40
18.70
18.70
34.00
34.00
30.00
30.00
45.00
45.00
412.70
200.00
200.00
$6,694.30
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
Account Name Date
DIRECTOR'S NAME:CROUCHER,GARY
Director's Fee 7/1/2009
Descriptions
REGULAR BOARD OF DIRECTORS MEETING
ATTACHMENT F
SECTION F
Amount
$100;00
7/7/2009
7/10/2009
7/27/2009
7/30/2009
9/17/2009
9/28/2009
9/30/2009
10/6/2009
10/7/2009
10/8/2009
10/14/2009
10/15/2009
10/30/2009
11/2/2009
11/3/2009
11/4/2009
11/19/2009
11/30/2009
12/2/2009
12/30/2009
1/6/2010
1/19/2010
1/21/2010
1/25/2010
INTRA SITE TOUR -DISTRICT FACILITY SITE (1296-
3 RESERVOIR)
LEGAL AD HOC COMMITIEE
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITIEE MEETING
AGENDA REVIEW WITH GM AND COUNCIL
GM REVIEW -AGENDA BRIEFING
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITIEE MEETING
WATER RATES AD HOC COMMITIEE MEETING
GM REVIEW -AGENDA BRIEFING
REGULAR BOARD OF DIRECTORS MEETING
OTAY WATER DISTRICT AUDIT REVIEW
WATER CONSERVATION JPA MEETING
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITIEE MEETING
COMMITIEE AGENDA BRIEFING MEETING WITH
GENERAL MANAGER
MEETING WITH STAFF TO SIGN DOCUMENTS FOR
BOND REFINANCING CLOSING
CADS BOARD OF DIRECTORS MEETING
REGULAR BOARD OF DIRECTORS MEETING
SAN DIEGO CADS QUARTERLY MEETING
COMMITIEE AGENDA BRIEFING MEETING WITH
GENERAL MANAGER
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITIEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
REGULAR BOARD OF DIRECTORS MEETING
CSDA BOARD OF DIRECTORS MEETING
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITIEE MEETING
LEGAL AD HOC COMMITIEE
100.00
100.00
100.00
100.00
---:t00.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Jun 10/Croucher G Page 6 of Pages 12
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.~00
100.00
$4,400.00
$4,400.00
100.00
100.00
---t00.00
100.00
ATTACHMENT F
SECTION F
AmountDescriptions
REGULAR BOARD OF DIRECTORS MEETING
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITTEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
WATER CONSERVATION JPA MEETING
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITTEE MEETING
MEETING WITH LEGAL COUNCIL -DESALINATION
CSDA BOARD OF DIRECTORS MEETING
LEGAL AD HOC COMMITTEE
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITTEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
WATER WISE LANDSCAPE COMMUNITY AWARDS
CUYUMACA COMMUNITY COLLEGE FOUNDATION
OTAY WATER DISTRICT BUDGET WORKSHOP
DESALINATION MEETING WITH GENERAL MANAGER
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITTEE MEETING
REGULAR BOARD OF DIRECTORS MEETING
TOUR FACILITIES -1485-1 AND 1296-3 RESERVOIR
WITH THE GENERAL MANAGER
ENGINEERING,OPERATIONS AND WATER
RESOURCES COMMITTEE MEETING
SPECIAL REGULAR BOARD MEETING
Account Name Date
Director's Fee 2/3/2010
2/22/2010
3/3/2010
3/10/2010
3/22/2010
3/23/2010
3/30/2010
3/31/2010
4/19/2010
5/5/2010
5/8/2010
5/15/2010
5/17/2010
5/19/2010
5/20/2010
6/2/2010
6/3/2010
6/16/2010
6/17/2010
Director's Fee Total
Grand Total
DIRECTOR'S NAME:CROUCHER,GARY
Jun 10/Croucher G Page 7 of Pages 12
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:LOPEZ,JOSE ATTACHMENT G
SECTION G
Account Name Date Descriptions Amount
Business meetings 10/8/2009 WATER AGENCIES ASSOCIATION $45.00
Business meetings Total 45.00
Director's Fee 7/1/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
7/8/2009 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00
7/22/2009 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00
8/5/2009 REGULAR BOARD OF DIRECTORS MEETING ---lOLf.oo
8/10/2009 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00
8/24/2009 SPECIAL REGULAR BOARD MEETING 100.00
8/25/2009 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00
8/31/2009 GM REVIEW -AGENDA BRIEFING 100.00
9/2/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
9/14/2009 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00
9/28/2009 CHULA VISTA WATER TASK FORCE 100.00
10/7/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
10/14/2009 WATER CONSERVATION JPA MEETING 100.00
10/15/2009 WATER AGENCIES ASSOCIATION 100.00
10/19/2009 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00
11/4/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
12/14/2009 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00
1/6/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
1/21/2010 ENGINEERING,OPERATIONS AND WATER RESOURCES 100.00
COMMITTEE MEETING
1/25/2010 CHULA VISTA WATER TASK FORCE 100.00
2/3/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
2/22/2010 ENGINEERING,OPERATIONS AND WATER RESOURCES 100.00
COMMITTEE MEETING
3/3/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
3/22/2010 ENGINEERING,OPERATIONS AND WATER RESOURCES 100.00
COMMITTEE MEETING
4/19/2010 ENGINEERING,OPERATIONS AND WATER RESOURCES 100.00
COMMITTEE MEETING
Jun 10/Lopez J Page 8 of Pages 12
Printed Date:
8/17120103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
100.00
ATTACHMENT G
SECTION G
Amount
DIRECTOR'S NAME:LOPEZ,JOSE
Account Name Date
4/7/2010
4/22/2010
4/26/2010
5/17/2010
6/2/2010
6/16/2010
5/3/2010
Director's Fee Total
Mileage -Business 8/31/2009
10/15/2009
5/31/2010
Mileage -Business Total
Mileage -Commuting 7/31/2009
8/31/2009
9/30/2009
10/7/2009
11/4/2009
1/31/2010
2/28/2010
3/31/2010
4/30/2010
5/31/2010
6/30/2010
Mileage -Commuting Total
Grand Total
Jun 10/Lopez J
Descriptions
REGULAR BOARD OF DIRECTORS MEETING
RECOGNITION AWARDS FOR OTAY WATER DISTRICT
AND GENERAL MANAGER
CITY OF CHULA VISTA -WATER TASK FORCE
OTAY WATER DISTRICT BUDGET WORKSHOP
REGULAR BOARD OF DIRECTORS MEETING
ENGINEERING,OPERATIONS AND WATER RESOURCES
COMMITTEE MEETING
DESALINATION MEETING WITH GENERAL MANAGER
MEETING -AUG.10,2009
MEETING -OCT.15, 2009
MEETING -MAY 3,2010
MEETING -JULY 1 &22,2009
MEETING -AUG.5,24,&25 2009
MEETING -SEPT.2,2009
MEETING -OCT.7,2009
MEETING -NOV.4,2009
MEETING -JAN.6 &21,2010
MEETING -FEB.03 &22,2010
MEETING -MARCH 3 &22,2010
MEETING -APRIL 7,19,&22,2010
MEETING -MAY 17,2010
MEETING -JUNE 2 &16,2010
Page 9 of Pages 12
100.00
100.00
100.00
100.00
100.00
-1.00:"00
3,200.00
13.20
20.90
16.50
50.60
22.00
33.00
11.00
11.00
11.00
20.00
20.00
20.00
37.00
10.00
20.00
215.00
$3,510.60
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:ROBAK,MARK ATTACHMENT H
SECTION H
Account Name Date Descriptions Amount
Business meetings 7/10/2009 THE CHAMBER SAN DIEGO EAST COUNTY $20.00
8/7/2009 SAN DIEGO EAST COUNTY CHAMBER OF COMMERCE 20.00
9/11/2009 SAN DIEGO EAST COUNTY CHAMBER OF COMMERCE 20.00
10/2/2009 SAN DIEGO EAST COUNTY CHAMBER OF COMMERCE 200.00
12/3/2009 SAN DIEGO EAST COUNTY CHAMBER HOLIDAY MIXER 15.00
&OPEN HOUSE
12/4/2009 REGISTRATION ASSOCIATION OF CALIFORNlA WATER ----9'25.00
AGENCIES DEC.1-4,2009
1/18/2010 SAN DIEGO EAST COUNTY CHAMBER OF COMMERCE 20.00
2/16/2010 COUNCIL OF WATER UTILITIES 25.00
5/7/2010 SD EAST COUNTY CHAMBER OF COMMERCE'S FIRST 20.00
FRIDAY BREAKFAST MEETING
6/1/2010 SD EAST COUNTY CHAMBER OF COMMERCE'S FIRST 25.00
FRIDAY BREAKFAST MEETING
5/26/2010 SPECIAL DISTRICT AND LOCAL GOVERNMENT 25.00
INSTITUTE
Business meetings Total 1/015.00
Director's Fee 7/1/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
7/9/2009 SAN VICENTE DAM RAISE CEREMONY 100.00
8/5/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
8/19/2009 WATER REUSE SAN DIEGO CHAPTER MEETING 100.00
8/24/2009 SPECIAL REGULAR BOARD MEETING 100.00
9/2/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
9/3/2009 GM REVIEW -DISCUSSION OF GENERAL BUSINESS 100.00
GOALS &OBJECTIVES FOR NEW YEAR
10/7/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
10/29/2009 CELEBRATION OF LIFE -WATER CONSERVATION 100.00
GARDEN
11/4/2009 REGULAR BOARD OF DIRECTORS MEETING 100.00
Jun 10/Robak M Page 10 of Pages 12
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:ROBAK,MARK ATTACHMENT H
SECTION H
Account Name Date Descriptions Amount
11/6/2009 WATER REUSE WORKSHOP IRVINE RANCH WATER 100.00
12/10/2009 WATER REUSE SAN DIEGO CHAPTER MEETING 100.00
12/31/2009 AQUA BI-YEARLY CONVENTION IN SAN DIEGO DEC.1-400.00
4,2009
1/6/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
2/3/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
2/16/2010 COUNCIL OF WATER UTILITIES 100.00
3/3/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
4/7/2010 REGULAR BOARD OF DIRECTORS MEETING 1-00.00
4/8/2010 CWA ANNUAL RETREAT -SANDAG ECONOMIST AND ----roo.00
CWA BOARD -5/5/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
5/17/2010 OTAY WATER DISTRICT BUDGET WORKSHOP 100.00
6/2/2010 REGULAR BOARD OF DIRECTORS MEETING 100.00
6/17/2010 SPECIAL REGULAR BOARD MEETING 100.00
5/18/2010 OTAY WATER DEVELOPER LUNCHEON 100.00
Director's Fee Total 2,700.00
Mileage -Business 7/31/2009 MEETING -JULY 6 &31,2009 20.35
8/31/2009 MEETING -AUG.5,19 &24 2009 45.10
9/2/2009 MEETING -SEPTEMBER 2,2009 3.30
10/31/2009 MEETING -OCT.7,15 &26 2009 18.70
11/30/2009 MEETING -NOV.4 &6,2009 10l.75
12/31/2009 MEETING -DEC.1 - 4 &10,2009 80.30
PARKING -TOWN &COUNTRY CONVENTION CENTER 41.00
DEC.1-4,2009
1/31/2010 MEETING -JAN.6,2010 3.00
2/28/2010 MEETING -FEB.3 &16,2010 33.50
3/3/2010 MEETING -MARCH 3,2010 3.00
4/30/2010 MEETING -APRIL 7 &8,2010 9.00
5/31/2010 MEETING -MAY 5,17 &18,2010 12.00
6/30/2010 MEETING -JUNE 2 &17,2010 9.00
Mileage -Business Total 380.00
Jun 10/Robak M Page 11 of Pages 12
Printed Date:
8/17/20103:53 PM
OTAY WATER DISTRICT
SUMMARY -BOARD OF DIRECTORS EXPENSES
FOR THE PERIOD JULY 1,2009 THROUGH JUNE 30,2010
DIRECTOR'S NAME:ROBAK,MARK
Account Name Date
Mileage -Commuting 7/31/2009
8/31/2009
9/2/2009
10/31/2009
11/30/2009
1/31/2010
2/28/2010
3/3/2010
4/30/2010
5/31/2010
6/30/2010
Mileage -Commuting Total
Descriptions
MEETING -JULY 1,2009
MEETING -AUG.5 &24 2009
MEETING -SEPTEMBER 2,2009
MEETING -OCT.7 &29,2009
MEETING -NOV.4,2009
MEETING -JAN.6,2010
MEETING -FEB.3,2010
MEETING -MARCH 3,2010
MEETING -APRIL 7,2010
MEETING -MAY 5 &17,2010
MEETING -JUNE 2,2010
ATTACHMENT H
SECTION H
Amount
2.20
4.40
2.20
4.40
2.20
2.00
2.00
2.00
_2.00
-4.00
2.00
Seminars and confere 8/21/2009 SAN DIEGO EAST COUNTY -WATER CONSERVATION 50.00
POLITICS IN PARADISE
9/25/2009 THE RANCHO SAN DIEGO-JAMUL BREAKFAST MEETING 15.00
12/1/2009 ACWA 2009 FALL CONFERENCE &EXHIBITION
REGISTRATION
12/11/2009 RANCHO SAN DIEGO-JAMUL CHAMBER OF COMMERCE
3/4/2010 SPECIAL DISTRICT GOVERNANCE SEMINAR -March 4 -
5,2010
Seminars and conferences Total
Grand Total
73.00
15.00
595.00
748.00
$4,872.40
Jun 10/Robak M Page 12 of Pages 12
Printed Date:
8/17/20103:53 PM
EXHIBIT B
OTAY WATER DISTRlCT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To:Larry Breitfelder Period Covered:Apr 1 to Apr 30,2010
Employee Number:-c-70""I...;...3 _From:4/1/10 To:4/30/10
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE
DISCUSSED HOMEloOII'D OTHER
011'010 HOME LOCATIONS
OWD Board
I.417/10 Meeting OWD Board ofDirectors Meeting 30
WCG Board
2.4/14/10 Meeting Water Conservation Garden Board Meeting 34
FA&C
3.4/20/1 0 Committee OWD Finance,Admin &Communications Committee 30 --
4.-
5.
6.
7.
8.
9.
10.
11
12.
13.
14.
15.
16.
17.
18.
~~ere-!;Z €J.;;f;;r
~,k)-00
(Directf#S Signature)
S.If>,2-0''2)Date:_
94 miles
Total Meeting Per Diem:
($100 per meeting)
(
Total Mil~ageClaimed:
iI
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
/000.00
",g.{)0
EXHIBIT B
Pay To:Larry Breitfelder Period Covered:
Employee Number:---..:....70::..;1:=3:--_From:_5::.:./.=:.1/..=.10=--~_To:5/30/10
o :>0
1+5'OO¥$1000.00TotalMeetingPerDiem:
($100 per meeting)
ITEr DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE~llll DISCUSSED HOME to OWD OTHER
OWDtoHOME LOCATIONS
1~South County South County Economic Development Council Board
~5/4/10 EDC Meeting
OWDBoard
2.5/5/10 Meeting OWD Board Meeting 30
3.5/10/10 CAC Conservation Action Committee 40
WCGBrd
4.5/12/10 Meeting Water Conservation Garden Board Meeting 34--=
OWD Special
OWD Special Board Meeting/Budget Workshop5.5/17/10 Brd Meeting 30 -.__.p.-.
FA&C
6.5/19/10 Committee OWD Finance,Adr
7.5120/10 CSDA California Special I 40
CWA Local Water ResoUi
8.5/21/10 Infrastructure by MWD and CWj
Tour 40
Binational O·:>:~9.5126/10 Desai Cnfr Binational Desalina ~~~30
Bmational
10.5/27/10 Desai Cnfr Binational Desalina 10-x 30
:J 100-00=11.1,000-00*/
12.
13.0-*i:
14.30-00+
15.~t 30-00+
30-00+
16.90-00*
17.
18.90-00 x
..£.-=
Total Mileage Claimed:304
(Direct~
GM Receipt:Date:_7:...'_1.._\_~_2;_'0_(0 _
~~h.rkA L-ttl,A}&.-.~?'J<7 •'2..D'O .;.."n ~"JcV~-
5~",.~elk'%.-r11oAl".f.~IUl~1t>"TZf'~.fcm~)
FOROFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$._
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
7-/0/·52-8/0/
.~I [)/.f:J-/1 {)2-
5lJ{}·tJtJ
Jj5.{)D
EXHIBITB
Pay To:Larry Breitfelder Period Covered:
Employee Number:--:..;70:;.:1.::..3 _From:6/1/10 To:6/30/10
90 00 ...
90·00x
0-50='f5.00*/.~
."r's Signature)
Date:7 .z-''1-0,0
164
$500.00
Total Mileage Claimed:
Total Meeting Per Diem:
($100 per meeting)
GM Receipt:--J~~--------------
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE
DISCUSSED HOMEto OWD OTHER
OWDtoHOME LOCATIONS
OWD Board
1.6/2/10 Meeting OWD Board ofDirectors Meeting 30
WCGBoard
2.6/9/10 Meeting Water Conservation Garden Board Meeting 34
3.6/14/10 CAC Conservation Action Committee 40
FA&C -4.6/15/10 Committee OWD Finance, Admin &Communications Committee 30
OWD Special -5.6/17/10 Brd Mtg OWD Special Board Meeting 30
6.
7.c
8.
9.
10.0-*
11.~~5·x12.'lOO-OO=
13.J~500-00*/'
14.
0-*I15.:
16.30·00+
17.~r 30-00+
~
30-00+18.(.r :1<
5j§"
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_
Pay To:Gary Croucher
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Period Covered:
EXHIBIT B
Employee Number:7011------------From 04/01110 To:04/30/10
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE'
DISCUSSED HOME to OWD OTHER
./OWD to HOME LOCATIONS
-I 04/19 Committee Engineering and Operations Committee
1
-
I II $100
Total Meeting Per Diem:
($100 per meeting)
Total Mileage Claimed:0 miles-------
Date:5·if ZOro
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_
/
8rJoTJ·;1-/1)/0 ~I 0/
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
000.00
EXHIBITB
Pay To:Gar Croucher Period Covered:
Employee Number:7011-----------From:05/01/10 To:05/31/10
ITEM DATE MEETING PURPOSE 1 ISSUES MILEAGE MILEAGE
DISCUSSED HOME'oOWD OTHER
OWD'oHOME LOCATIONS
/05/05 Board Otay Board of Directors Meeting
I I
jI"v2 05/08 WCGJPA Water Wise Landscape Community Awards event
.;3 05/15 Community Cuyumaca Community College Foundation event
Event
V 4 05/17 Board Budget Workshop --
/5 05/19 GM Desalination meeting 1Posiden briefing -
j 6 OS/20 Committee Engineering and Operations Committee Meeting -\'.
,
,
~r 0-*
6-X
100-00=
~600 0 00*/
0"*
I
$600
Total Meeting Per Diem:
($100 per meeting)
Date:~:...-~_
milesoTotalMileageClaimed:
GM·~~et.-fo~-..;_;&t _
f10 JUN 7PN FpfRPFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_
Pay To:Gary Croucher
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Period Covered:
-1/00~()O
EXHIBITB
Employee Number:7011-----------From:06/01110 To:06/30/10
ITEM DATE MEETING PURPOSE 1 ISSUES MILEAGE MILEAGE
It DISCUSSED HOMEtoOWD OTHER
OWD to HOME LOCATIONS
J 06/02 Board Regular Board Meeting
1,2 06/03 GM Tour ofFacilities (1485-1 and 1296-3 Reservoir)
II
V 3 06/16 Committee Engineering and Operations Committee
4 06/17 Board Special Board Meeting -Division I opening
\I --
-
~"vtf€l
~.Y 0'*,
[I.•Yo
100 0 00==,/
L}OO·OO*
$400
Total Meeting Per Diem:
($100 per meeting)
Total Mileage Claimed:o miles
Date:1·'~170(S.-,;..--------
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
v
<.IS M 000 ~113 (../ODD .2-/Of·5;;J-d'I Vj TVUrUf..-l
:":."':I/r!J 00 0 .I !?'-1000 .:?/tJ I ...:.ell0 ~XHI;t[-00
~1'"'"g\a'(~'OTAYWATERDISTRICT
BOARD OFDIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To:Jose Lopez Period Covered:
Employee Number:7010-----------From:O,:/it;1J/IOTo:t::Jo/811JO,
ITEM DATE MEETING PURPOSE 1 ISSUES
DISCUSSED
MILEAGE
HOME toOWD
OWDto HOME
MILEAGE
OTHER
LOCATIONS
~/l.
/v 2.
IV'3.v
v'4.
04/07/10 OWD
,ItCJ"
041¥1/10 OWD
04/22/1°CMAA
04/26/1 °City ofCV
Board Meeting
Eng &OPs Committee Meeting
Recognition Awards for Otav Water&GM Watton
Water Task Force
20
20
34
°
5.
6.
7.
8.
9.
10.
11.
15;
.
\x
*><ll**.,.,00·o -::1"00 0.,.,
00
00.......-::1"
*-I-+-I-*•e.'*'.'-J
o oo-::t-d'
(\J (\J .ttl t-
X l'~.,(::l 0
-::tt.r\o
t-• •or:-
ti\
17.
:I8.J
Total Meeting PerDiem:_$::...4:.;:0..:..0 _
($100 per meeting)
GMRedepl:~
Total Mileage Claimed:40 miles------
Rg.jBOFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
EXHIBITB
Pay To:Jose Lopez Period Covered:
Employee Number:7010----------From:05/01110 To:05/31/10
l
I,
II"
i
\
\
r
I:
D t ·7·/5>·'20 10ae.~.-.;.._
2-1 '2-~Totnl ~~eting Per Diem:$200
,-"'($100 p~meeting)-e.;.'--__~
1'-'9 -~til::<'<-
.-.Ul ;-.es::_0\~:•.Total Mileage Claimed:53 miles
_....."-.0 ------.......
-.r u--:"!~/=#~~~
I GM Redepl:7 -/5·"26Jt 0
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
ITEM DATE MEETING PURPOSE 1 ISSUES MILEAGE MILEAGE
/DISCUSSED 1l0MI"oOWD omEll
OWO 10 (·IOME l.OCA110NS
.;1,",05/03/10 OWD Desai Study Group 33
V
V 2.05!l7/10 OWD Special Board Mtg -Bud~et Workshop 20
3.-4..-..,~...._.".------~""'",_..:....._...----.
5.
6.
7.
8.
9.~v o•~~
10.2 •>~.
11.1,00-00=,;
12.200-0G*
13.~0-*
14.
15.20'I,
0-50/16.
10-00*
17.
18,)
"f'o-.,.~..,"-
/
;+6DOO -I e;L/ooo·2-t()7~5~/OI
)0 /I?L/OOO .?r oJ.-5'd)..//D 2-
~~.R(~
OTAY WATERDISTRICT
BOARDOFDnu:CTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To:Jose Lopez Period Covered:
Employee Number:7010----------From:06/01/10 To:06131110
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
Date:8 .!fp .7.-010
:1:Total Meeting PerDiem:.....:$::=2:.:;.00=--_
($100 permeeting)
Total Mileage Claimed:40 miles------
GMReclept:~•
ITEM DATE MEETING PURPOSE I ISSUES MILEAGE MILEAGE
DISCUSSED 1l0MnloOWD OTHER
OWOlollOME LOCATIONS
II'~1.6/02110 OWO BOARD MEETING 20
,"~.6116/10 own ENG &OPS COMMITTEE MEETING 20
3.
4.,--,
S.0·*
6.
7.2·x !
8.~I 100'00:::
200·*
9~
io;0·*
U.20·+
12;20·+/~v13.I~O·*
14.I!-O·~<
15.O·50:::/
16;20'00*
rt
18.
Pay To:Mark Robak
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER·DIEM AND MILEAGE CLAIM FORM
Period Covered:
Employee Number:_7.:...0:..;1:..:4c.;;.0c.;;.41::..0'--_
3217 Fair Oaks Lane,Spring Valley,CA 91978
From:_4.;...._1...;.,.10"--__To:4-30-10
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE
DISCUSSED HOME'0 OWD OTHER
OWD'0 HOME LOCATIONS
1 4-7 Monthly Otay Board Meeting General District Business 4 6
2 4-7 Rancho San Diego-Jamul Speaker on navigating tough economic 0 0
Chamber Luncheon -Outback times -No Charge --
3 4"8 CWA Annual Retreat at Otay Heard SANDAG economist and spoke 0 12 -with CWA Board and staff
4 4~8 Otay Open House -Jamacha Presentation of36"pipeline to community 0 0
Bar &Grill and answer questions -No charge
5 4,9 East County Chamber Monthly business/community forum -No 0 0
Breakfast -Grossmont College Charge
6 4-24 Water Conservation Garden Spring Garden Festival-No Charge 0 0
-
\~t-X >~~*X II *.0 •c'••0 :'J
0 0 C\!0 Cl --7 Lf'\0.•••
--0 0 0 N --
0 r5
,-C\l
~~,~~-_..---
Total Meeting Per Diem:$200 4 18
($100 per meeting)
Total Mileage Claimed:22
(Director's Signature)
Date:---=?;....._'_8_·_?o__I"0__
FOR OFFICE USE:TOTAL EAGE REIMBURSEMENT:$_/
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
2-!DJ'6:2<f/o/
21C9/,52/10d-
300.00
~.o()
Pay To:Mark Robak Period Covered:
Employee Number:_7;".;0;,.::1...;,40,;.;;5;,.::1..;;,0 _
3217 Fair Oaks Lane,Spring Valley,CA 91978
From:_5:;..-.;:,.1....;,1,;;..0__To:5-31-10
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE
DISCUSSED 1l0MEtoOWD OTIlER
OWDtollOME LOCATIONS
/1 5-5 Monthly Otay Board Meeting General District Business 4 6
2 5~7 East County Chamber Monthly business/community forum -No 0 0 -Breakfast -Cuyamaca College Charge -
3 5..11 Dr.Stuart Savin Reception Introduction ofnew Cuyamaca College 0 0 -
President -No charge
/
v 4 5;17 Otay Budget Workshop Annual budget review 4 6
/
'J 5 5-18 Otay Developer Luncheon Presentation ofnew charges and question 0 12
answering session
-----_.-
i
I
0·*
~1f'II 3 •>~
100-00::.::
.f~~fT\Y 300-00<,.(Y)"'~}...},....NG:~,,.;~0-*(~,1 Cl.-
"Total Meeting Per Diem:$300 8 24
/
l(Director's Signature)i,·l.f,2P~o
!
8·,~
0·50/
il--00*
110 0 00+
4-00+
8-00*
($10fljer meetmg)
,Tot~i1eage Claimed:.....::.:32=--_
£~~-v-d !ull!£GM APttf8¥al:;
FOR OFFICE USE:TOTAL MILEAGE J
. ..
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
£-./V I':;;~/V I
2/01.5;;;t/IV 2-2..00
Pay To:Mark Robak Period Covered:
Employee Number:_7.:..;0:..:1~40;;..:6:;,;;1;,.::.0 _
3217 Fair Oaks Lane,Spring Valley,CA 91978
From:_6;;...-.::..1-.:;;..10~__To:6-30-10
(Director's Signature)
D ~.14·z,o/()ate:_.:-'~--:;...-._
22
Qeteiy~~tfA~
GM Apprgy~l:--1~~---';:"'------------
••i~100 per meeting)
;;?
c;total Mileage Claimed:
c3~l
ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE
DISCUSSED HOME'oOWD OTHER
OWDloHOME LOCATIONS
1 6-1 Conversation with the Forum for local Assembly and Senate 0 0
Candidates Candidates at EI Cajon Elks Lodge -No
Charl!e
/2 6-2 Monthly Otay Board Meeting General District Business 4 6 --
/-3 6-17 Otay Special Board Meeting To accept the resignation ofBoard 0 12
Member Larry Breitfelder
,
0-::;:
~~;0-*
2·)~
100-00==/
200-00*
.t·".....¥0-*rt)'.'..Il~.
'~""......\.....N 4.i~"'t'
0*50==//)tt.....
<-"",
I.2-00*:!otal Meeting Per Diem:$200 4 18
FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_
AGENDA ITEM 7c
STAFF REPORT
September 1,2010
AllDIV.NO.
Regular BO~~..../~MEETING DATE:
James c~~1e Manager W.Q.lG.F.NO,
Josephy-eachem,Chief financial Officer
German ~Assistant General Manager,Administration and
Finance
SUBMITTED BY:
APPROVED BY:
(Asst.GM):
TYPE MEETING:
APPROVED BY:
(Chief)
SUBJECT:Annual Review of Investment Policy (Policy No 27)and
Delegation of Authority
GENERAL MANAGER'S RECOMMENDATION:
That the Board receives the District's Investment Policy (Policy
#27)for review,and to re-delegate authority for all investment
related activities to the Chief Financial Officer (CFO)in
accordance with Government Code Section 53607.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Government Code Section 53646 recommends that the District's
Investment Policy be rendered to the Board on an annual basis
for review.In addition,Government Code Section 53607 requires
that for the CFO's delegation of authority to remain effective,
the governing board must re-delegate authority over investment
activities on an annual basis.
ANALYSIS:
The primary goals of the investment policy are to assure
compliance with the California Government Code,Sections 53600
et seq,and to protect the principal of the funds.The code
provides a broad range of investment options for local agencies,
including Federal Treasuries,Federal Agencies,Callable Federal
Agencies,the State Pool,the County Pool,high-grade corporate
debt,and others.Over the past two years,the size of the
District's portfolio has fluctuated between $114 million and $65
million due to large outlays for construction projects,and the
influx of bond proceeds from the COPS!BABS-2010 funding.
There have been no changes to the policy since the Board's
previous annual review at the September 2,2009 regular board
meeting.Because of the District's adherence to a conservative
range of authorized investments,we have been able to maintain a
healthy and diversified portfolio with no investment losses
despite an extended period of turmoil and instability in the
national financial markets The policy is consistent with the
current law and the overall objectives of the policy are being
met.
FISCAL IMPACT:
None.
STRATEGIC GOAL:
Demonstrate financial health through formalized policies,
prudent investing,and efficient operations.
LEGAL IMPACT:
Attachments:
A)Committee Staff Report
B)Investment Policy #27
C)Portfolio Management:Portfolio Summary,June 30,2010
D)Copy of Investment Policy Presentation Slides
ATTACHMENT A
Annual Review of Investment Policy (Policy No.27)and
SUBJECT/PROJECT:Delegation of Authority
COMMITTEE ACTION:
The Finance,Administration,and Communications Committee
reviewed this item at a meeting held on August 23,2010 and the
following comments were made:
•
•
•
•
Staff indicated that Government Code Section 53646 recommends
that the Board review the District's Investment Policy
annually and Government Code Section 53607 requires that the
board redelegate authority annually to the Chief Financial
Officer for all investment related activities.
The District's investment policy was last amended in 2006 and
the policy continues to comply with current State laws and the
guidelines of the Association of Public Treasurers of the
United States and Canada.
The District has had favorable results with investments
despite the struggling economy and continues to meet the
objectives of safety,liquidity and return on investment
(ROI).It was noted that the District's investment
performance,utilizing LAIF as a guideline (a rnajority of
agencies who invest in LAIF utilize LAIF as a benchmark),have
out-performed LAIF despite the unstable economy.Staff feels
that the policy still meets investment objectives and
recommends no changes to the policy.
The committee discussed how the District assures that there
are checkpoints to oversee/assure that the District is
following policies and adhering to guidelines.It was
indicated that there are a number of ways that the District
does so:
The District's brokers know the District's policy and
provide a checkpoint.
State Statute has a number of limitations in what the
District can invest in and the District's policy further
limits investment vehicles.
The District reports on its investment status monthly.
Y:\Board\CurBdPkg\FINANCE\CommMtglnvestpolicy090110.doc
•
•
The auditors provide a couple different levels of
internal control reviews:
o As part of the annual audit,the auditor
reviews/audits internal controls to assure that
District staff is following policies and procedures.
o The District also engaged the auditors to look at
various internal controls at a detailed level.They
have provided recommendations which staff plans to
implement.
The committee requested that General Counsel design a process
that would provide a legal review from an operational
perspective.The new process would occur every two years.
There was discussion regarding the reason the District does
not retain an outside consultant for investment strategy.It
was indicated that due to the size of the District's portfolio
and the fact that the District is limited to investments that
are very liquid and low risk,the additional minor increase in
returns would be offset by the fee charged by such firms.
Thus,there would be no real advantage in engaging an
investment firm.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board on the consent
calendar.
Attachment B
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY ..
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
1.0:POLICY
It is the policy of the Otay Water District to invest public funds in a
manner which will provide maximum security with the best interest
return,while meeting the daily cash flow demands of the entity and
conforming to all state statues governing the investment of public
funds.
2.0:SCOPE
This investment policy applies to all financial assets of the Otay
Water District.The District pools all cash for investment purposes.
These funds are accounted for in the District's audited Comprehensive
Annual Financial Report (CAFR)and include:
2.1}General Fund
2.2}Capital Project Funds
2.2.1}Designated Expansion Fund
2.2.2}Restricted Expansion Fund
2.2.3}Designated Betterment Fund
2.2.4}Restricted Betterment Fund
2.2.5}Designated Replacement Fund
2.3}Other Post Employment Fund (OPEB)
2.4}Debt Reserve Fund
Exceptions to the pooling of funds do exist for tax-exempt debt
proceeds and deferred compensation funds.Funds received from the sale
of general obligation bonds,certificates of participation or other
tax-exempt financing vehicles are segregated from pooled investments
and the investment of such funds are guided by the legal documents that
govern the terms of such debt issuances.
3.0:PRUDENCE
Investments should be made with judgment and care,under current
prevailing circumstances,which persons of prudence,discretion and
intelligence exercise in the management of their own affairs,not for
speculation,but for investment,considering the probable safety of
their capital as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be
the "Prudent Person"and/or "Prudent InvestorlJ standard (California
Government Code 53600.3)and shall be applied in the context of
managing an overall portfolio.Investment officers acting in
accordance with written procedures and the investment policy and
exercising due diligence shall be relieved of personal responsibility
for an individual security's credit risk or market price changes,
Page 1 of 15
OTAYWATER DISTRICT
BOARD OF DIRECTORS POLICY
--
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
4.0:OBJECTIVE
As specified in the California Government Code 53600.5,when investing,
reinvesting,purchasing,acquiring,exchanging,selling and managing
public funds,the primary objectives,in priority order,of the
investment activities shall be:
4.1}Safety:Safety of principal is the foremost objective of th~
investment program.Investments of the Otay Water District
shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio.To attain
this objective,the District will diversify its investments
by investing funds among a variety of securities offering
independent returns and financial institutions.
4.2}Liquidity:The Otay Water District's investment portfolio
will remain sufficiently liquid to enable the District to
meet all operating requirements which might be reasonably
anticipated.
4.3}Return on Investment:The Otay Water District's investment
portfolio shall be designed with the objective of attaining a
benchmark rate of return throughout budgetary and economic
cycles,commensurate with the District's investment risk
constraints and the cash flow characteristics of the
portfolio.
Page 2 of 15
OTAYWATER DISTRICT
BOARD OF DIRECTORS POLICY ..
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
5.0 DELEGATION OF AUTHORITY
Authority to manage the Otay Water District's investment program is
derived from the California Government Code,Sections 53600 through
53692.Management responsibility for the investment program is hereby
delegated to the Chief Financial Officer (CFO),who shall be
responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of subordinate officials
and their procedures in the absence of the CFO.____
The CFO shall establish written investment policy procedures for the
operation of the investment program consistent with this policy.Such_
procedures shall include explicit delegation of authority to persons
responsible for investment transactions.No person may engage in an
investment transaction except as provided under the terms of this
policy and the procedures established by the CFO.
6.0:ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with the proper
execution and management of the investment program,or that could
impair their ability to make impartial investment decisions.Employees
and investment officials shall disclose to the General Manager any
material financial interests in financial institutions with which they
conduct business.They shall further disclose any personal
financial/investment positions that could be related to the performance
of the investment portfolio.Employees and officers shall refrain from
undertaking personal investment transactions with the same individual
with whom business is conducted on behalf of the District.
7.0:AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Chief Financial Officer shall maintain a list of financial
institutions authorized to provide investment services.In addition,a
list will also be maintained of approved security broker/dealers who
are authorized to provide investment services in the State of
California.These may include "primary"dealers or regional dealers
that qualify under Securities &Exchange Commission Rule 15C3-1
(Uniform Net Capital Rule).No public deposit shall be made except in
a qualified public depository as established by state laws.
All financial institutions and broker/dealers who desire to become
qualified bidders for investment transactions must supply the District
with the following,as appropriate:
•Audited Financial Statements.
Page 3 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY ..
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
•Proof of National Association of Security Dealers (NASD)
certification.
•Proof of state registration.
•Completed broker/dealer questionnaire.
•Certification of having read the District's Investment
Policy.
•Evidence of adequate insurance coverage.
As annual review of the financial condition and registrations of
qualified bidders will be conducted by the CFO.A current audited
financial statement is required to be on file for each financial
institution and broker/dealer in which the District invests.
8.0:AUTHORIZED AND SUITABLE INVESTMENTS
From the governing body perspective,special care must be taken to
ensure that the list of instruments includes only those allowed by law
and those that local investment managers are trained and competent to
handle.The District is governed by the California Government Code,
Sections 53600 through 53692,to invest in the following types of
securities,as further limited herein:
8.01)United States Treasury Bills,Bonds,Notes or those
instruments for which the full faith and credit of the United
States are pledged for payment of principal and interest.There
is no percentage limitation of the portfolio which can be invested
in this category,although a five-year maturity limitation is
applicable.
8.02)Local Agency Investment Fund (LAIF),which is a State of
California managed investment pool,may be used up to the maximum
permitted by State Law (currently $40 million).The District may
also invest bond proceeds in LAIF with the same but independent
maximum limitation.
8.03)Bonds,debentures,notes and other evidence of indebtedness
issued by any of the following government agency issuers:
•Federal Home Loan Bank (FHLB)
•Federal Home Loan Mortgage Corporation (FHLMC or IIFreddie
Mac II )
•Federal National Mortgage Association (FNMA or IIFannie Mae II )
•Government National Mortgage Association (GNMA or "Ginnie
Mae")
•Student Loan Marketing Association (SLMA or IISallie Mae II )
•Federal Farm Credit Bank (FFCB)
Page 4 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
--
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
There is no percentage limitation of the portfolio which can be
invested in this category,although a five-year maturity
limitation is applicable.
8.04)Interest-bearing demand deposit accounts and Certificates of
Deposit (CD)will be made only in Federal Deposit Insurance
Corporation (FDIC)insured accounts.For deposits in excess of
the insured maximum of $100,000,approved collateral shall be
required in accordance with California Government Code,Section----
53652.Investments in CD's are limited to 15 percent of the
District's portfolio.
8.05)Commercial paper,which is short-term,unsecured
promissory notes of corporate and public entities.Purchases of
eligible commercial paper may not exceed 10 percent of the
outstanding paper of an issuing corporation,and maximum
investment maturity will be restricted to 270 days.Investment is
further limited as described in California Government Code,
Section 53601(g).Purchases of commercial paper may not exceed 15
percent of the District's portfolio.
8.06)Medium-term notes defined as all corporate debt
securities with a maximum remaining maturity of five years or
less,and that meet the further requirements of California
Government Code,Section 53601(j).Investments in medium-term
notes are limited to 15 percent of the District's portfolio.
8.07)Money market mutual funds that invest only in Treasury
securities and repurchase agreements collateralized with Treasury
securities,and that meet the further requirements of California
Government Code,Section 53601(k).Investments in money market
mutual funds are limited to 15 percent of the District's
portfolio.
8.08)The San Diego County Treasurer's Pooled Money Fund,which is
a County managed investment pool,may be used by the Otay Water
District to invest excess funds.There is no percentage
limitation of the portfolio which can be invested in this
category.
8.09)Under the provisions of California Government Code 53601.6,
the Otay Water District shall not invest any funds covered by this
Investment Policy in inverse floaters,range notes,interest-only
strips derived from mortgage pools,or any investment that may
result in a zero interest accrual if held to maturity.Also,the
Page 5 of 15
OTAYWATER DISTRICT
BOARD OF DIRECTORS POLICY ..
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
borrowing of funds for investment purposes,known a leveraging,is
prohibited.
9.0:INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to
investing,and on a continual basis.There shall be a questionnaire
developed which will answer the following general questions:
• A description of eligible investment securities,and a
written statement of investment policy and objectives.
• A description of interest calculations and how it is
distributed,and how gains and losses are treated.
• A description of how the securities are safeguarded
(including the settlement processes),and how often the
securities are priced and the program audited.
• A description of who may invest in the program,how often,
and what size deposits and withdrawals are allowed.
• A schedule for receiving statements and portfolio listings.
•Are reserves,retained earnings,etc.,utilized by the
pool/fund?
• A fee schedule,and when and how is it assessed.
•Is the pool/fund eligible for bond proceeds and/or will it
accept such proceeds?
10.0 COLLATERALIZATION
Collateralization will be required on certificates of deposit.In
order to anticipate market changes and provide a level of security for
all funds,the collateralization level will be 102%of market value of
principal and accrued interest.Collateral will always be held by an
independent third party with whom the entity has a current custodial
agreement.A clearly marked evidence of ownership (safekeeping
receipt)must be supplied to the entity and retained.The right of
collateral substitution is granted.
11.0:SAFEKEEPING AND CUSTODY
All security transactions entered into by the Otay Water District shall
be conducted on a delivery-versus-payment (DVP)basis.Securities will
be held by a third party custodian designated by the District and
evidenced by safekeeping receipts.
12.0:DIVERSIFICATION
Page 6 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY --
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
The Otay Water District will diversify its investments by security type
and institution,with limitations on the total amounts invested in each
security type as detailed in Paragraph 8.0,above,so as to reduce
overall portfolio risks while attaining benchmark average rate of
return.With the exception of U.S.Treasury securities,government
agencies,and authorized pools,no more than 50%of the District's
total investment portfolio will be invested with a single financial
institution.
13.0:MAXIMUM MATURITIES
To the extent possible,the Otay Water District will attempt to match
its investments with anticipated cash flow requirements.Unless
matched to a specific cash flow,the District will not directly invest
in securities maturing more than five years from the date of purchase.
However,for time deposits with banks or savings and loan associations,
investment maturities will not exceed two years.Investments in
commercial paper will be restricted to 270 days.
14.0:INTERNAL CONTROL
The Chief Financial Officer shall establish an annual process of
independent review by an external auditor.This review will provide
internal control by assuring compliance with policies and procedures.
15.0:PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of
obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow
needs.
The Otay Water District's investment strategy is passive.Given this
strategy,the basis used by the CFO to determine whether market yields
are being achieved shall be the State of California Local Agency
Investment Fund (LAIF)as a comparable benchmark.
16.0:REPORTING
The Chief Financial Officer shall provide the Board of Directors
monthly investment reports which provide a clear picture of the status
of the current investment portfolio.The management report should
include comments on the fixed income markets and economic conditions,
discussions regarding restrictions on percentage of investment by
categories,possible changes in the portfolio structure going forward
and thoughts on investment strategies.Schedules in the quarterly
report should include the following:
Page 7 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
--
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
• A listing of individual securities held at the end of the
reporting period by authorized investment category.
•Average life and final maturity of all investments listed.
•Coupon,discount or earnings rate.
•Par value,amortized book value,and market value.
•Percentage of the portfolio represented by each investment
category.
17.0:INVESTMENT POLICY ADOPTION
The Otay Water District's investment policy shall be adopted by
resolution of the District's Board of Directors.The policy shall be
reviewed annually by the Board and any modifications made thereto must
be approved by the Board.
18.0:GLOSSARY
See Appendix A.
Page 8 of 15
OTAYWATER DISTRICT
BOARD OF DIRECTORS POLICY --
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
APPENDIX A:GLOSSARY
ACTIVE INVESTING:Active investors will purchase investments and
continuously monitor their activity,often looking at the price
movements of their stocks many times a day,in order to exploit
profitable conditions.Typically,active investors are seeking short
term profits.
AGENCIES:Federal agency securities and/or Government-sponsored
enterprises.
BANKERS'ACCEPTANCE (BA):A draft or bill or exchange accepted by a
bank or trust company.The accepting institution guarantees payment of
the bill,as well as the issuer.
BENCHMARK:A comparative base for measuring the performance or risk
tolerance of the investment portfolio.A benchmark should represent a
close correlation to the level of risk and the average duration of the
portfolio's investments.
BROKER/DEALER:Any individual or firm in the business of buying and
selling securities for itself and others.Broker/dealers must register
with the SEC.When acting as a broker,a broker/dealer executes orders
on behalf of his/her client.When acting as a dealer,a broker/dealer
executes trades for his/her firm'S own account.Securities bought for
the firm's own account may be sold to clients or other firms,or become
a part of the firm'S holdings.
CERTIFICATE OF DEPOSIT (CD):A short or medium term,interest bearing,
FDIC insured debt instrument offered by banks and savings and loans.
Money removed before maturity is subject to a penalty.CDs are a low
risk,low return investment,and are also known as "time deposits",
because the account holder has agreed to keep the money in the account
for a specified amount of time,anywhere from a few months to several
years.
COLLATERAL:Securities,evidence of deposit or other property,which a
borrower pledges to secure repayment of a loan.Also refers to
securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER:An unsecured short-term promissory note,issued by
corporations,with maturities ranging from 2 to 270 days.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR):The official annual
report for the Otay Water District.It includes detailed financial
information prepared in conformity with generally accepted accounting
principles (GAAP).It also includes supporting schedules necessary to
demonstrate compliance with finance-related legal and contractual
Page 9 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY --
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
provisions,extensive introductory material,and a detailed statistical
section.
COUPON:(a)The annual rate of interest that a bond's issuer promises
to pay the bondholder on the bond's face value.(b)A certificate
attached to a bond evidencing interest due on a set date.
DEALER:A dealer,as opposed to a broker,acts as a principal in all
transactions,buying and selling for his own account.
DEBENTURE:A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT:There are two methods of delivery of
securities:delivery versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities with an exchange of
money for the securities.Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
DERIVATIVES:(1)Financial instruments whose return profile is linked
to,or derived from,the movement of one or more underlying index or
security,and may include a leveraging factor,or (2)financial
contracts based upon notional amounts whose value is derived from an
underlying index or security (interest rates,foreign exchange rates,
equities or commodities).
DISCOUNT:The difference between the cost price of a security and its
maturity when quoted at lower than face value.A security selling
below original offering price shortly after sale also is considered to
be at a discount.
DISCOUNT SECURITIES:Non-interest bearing money market instruments that
are issued at a discount and redeemed at maturity for full face value,
e.g.,U.S.Treasury Bills.
DIVERSIFICATION:Dividing investment funds among a variety of
securities offering independent returns.
FEDERAL CREDIT AGENCIES:Agencies of the Federal government set up to
supply credit to various classes of institutions and individuals,e.g.,
S&L's,small business firms,students,farmers,farm cooperatives,and
exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC):A federal agency that
insures deposits in member banks and thrifts,currently up to $100,000
per deposit.
FEDERAL FARM CREDIT BANK (FFCB):The Federal Farm Credit Bank system
supports agricultural loans and issues securities and bonds in
Page 10 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY _.
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
financial markets backed by these loans.It has consolidated the
financing programs of several related farm credit agencies and
corporations.
FEDERAL FUNDS RATE:The rate of interest at which Fed funds are traded.
This rate is currently pegged by the Federal Reserve through open-
market operations.
FEDERAL HOME LOAN BANK (FHLB):Government sponsored wholesale banks ~
(currently 12 regional banks),which lend funds and provide
correspondent banking services to member commercial banks,thrift
institutions,credit unions and insurance companies.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac):A
stockholder owned,publicly traded company chartered by the United
States federal government in 1970 to purchase mortgages and related
securities,and then issue securities and bonds in financial markets
backed by those mortgages in secondary markets.Freddie Mac,like its
competitor Fannie Mae,is regulated by the United States Department of
Housing and Urban Development (HUD).
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae):FNMA,like
GNMA was chartered under the Federal National Mortgage Association Act
in 1938.FNMA is a federal corporation working under the auspices of
the Department of Housing and Urban Development (HUD).It is the
largest single provider of residential mortgage funds in the United
States.Fannie Mae is a private stockholder-owned corporation.The
corporation's purchases include a variety of adjustable mortgages and
second loans,in addition to fixed-rate mortgages.FNMA's securities
are also highly liquid and are widely accepted.FNMA assumes and
guarantees that all security holders will receive timely payment of
principal and interest.
FEDERAL RESERVE SYSTEM:The central bank of the United States created
by Congress and consisting of a seven member Board of Governors in
Washington,D.C.,12 regional banks and about 5,700 commercial banks
that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):A
government owned agency which buys mortgages from lending institutions,
securitizes them,and then sells them to investors.Because the
payments to investors are guaranteed by the full faith and credit of
the U.S.Government,they return slightly less interest than other
mortgage-backed securities.
INTEREST-ONLY STRIPS:A mortgage backed instrument where the investor
receives only the interest,no principal,from a pool of mortgages.
Issues are highly interest rate sensitive,and cash flows vary between
Page 11 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY --
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
interest periods.Also,the maturity date may occur earlier than that
stated if all loans within the pool are pre-paid.High prepayments on
underlying mortgages can return less to the holder than the dollar
amount invested.
INVERSE FLOATER:A bond or note that does not earn a fixed rate of
interest.Rather,the interest rate is tied to a specific interest
rate index identified in the bond/note structure.The interest rate
earned by the bond/note will move in the opposite direction of the
index.An inverse floater increases the market rate risk and modified
duration of the investment.
LEVERAGE:Investing with borrowed money with the expectation that the
interest earned on the investment will exceed the interest paid on the
borrowed money.
LIQUIDITY:A liquid asset is one that can be converted easily and
rapidly into cash without a substantial loss of value.In the money
market,a security is said to be liquid if the spread between bid and
asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF):The aggregate of all funds from
political subdivisions that are placed in the custody of the State
Treasurer for investment and reinvestment.
MARKET VALUE:The price at which a security is trading and could
presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT:A written contract covering all future
transactions between the parties to repurchase/reverse repurchase
agreements that establish each party's rights in the transactions.A
master agreement will often specify,among other things,the right of
the buyer-lender to liquidate the underlying securities in the event of
default by the seller borrower.
MATURITY:The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET:The market in which short-term debt instruments (bills,
commercial paper,bankers'acceptances,etc.)are issued and traded.
MUTUAL FUNDS:An open-ended fund operated by an investment company
which raises money from shareholders and invests in a group of assets,
in accordance with a stated set of objectives.Mutual funds raise
money by selling shares of the fund to the public.Mutual funds then
take the money they receive from the sale of their shares (along with
any money made from previous investments)and use it to purchase
Page 12 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY --
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
various investment vehicles,such as stocks,bonds,and money market
instruments.
MONEY MARKET MUTUAL FUNDS:An open-end mutual fund which invests only
in money markets.These funds invest in short term (one day to one
year)debt obligations such as Treasury bills,certificates of deposit,
and commercial paper.
NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD):A self~regulator~
organization of the securities industry responsible for the operation
and regulation of the NASDAQ stockmarket and over-the-counter markets._
Its regulatory mandate includes authority over firms that distribute
mutual fund shares as well as other securities.
PASSIVE INVESTING:An investment strategy involving limited ongoing
buying and selling actions.Passive investors will purchase
investments with the intention of long term appreciation and limited
maintenance,and typically don't actively attempt to profit from short
term price fluctuations.Also known as a buy-and-hold strategy.
PRIMARY DEALER:A designation given by the Federal Reserve System to
commercial banks or broker/dealers who meet specific criteria,
including capital requirements and participation in Treasury auctions.
These dealers submit daily reports of market activity and positions and
monthly financial statements to the Federal Reserve Bank of New York
and are subject to its informal oversight.Primary dealers include
Securities and Exchange Commission registered securities
broker/dealers,banks,and a few unregulated firms.
PRUDENT PERSON RULE:An investment standard.In some states the law
requires that a fiduciary,such as a trustee,may invest money only in
a list of securities selected by the custody state-the so-called legal
list.In other states the trustee may invest in a security if it is
one which would be bought by a prudent person of discretion and
intelligence who is seeking a reasonable income and preservation of
capital.
PUBLIC SECURITIES ASSOCIATION (PSA):A trade organization of dealers,
brokers,and bankers who underwrite and trade securities offerings.
QUALIFIED PUBLIC DEPOSITORIES:A financial institution which does not
claim exemption from the payment of any sales or compensating use or ad
valorem taxes under the laws of this state,which has segregated for
the benefit of the commission eligible collateral having a value of not
less than its maximum liability and which has been approved by the
Public Deposit Protection Commission to hold public deposits.
Page 13 of 15
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY ..
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
RANGE NOTE:An investment whose coupon payment varies and is dependent
on whether the current benchmark falls within a pre-determined range.
RATE OF RETURN:The yield obtainable on a security based on its
purchase price or its current market price.This may be the amortized
yield to maturity on a bond the current income return.
REGIONAL DEALER:A securities broker/dealer,registered with the
Securities &Exchange Commission (SEC),who meets all of the licens~
requirements for buying and selling securities.
REPURCHASE AGREEMENT (RP OR REPO):A holder of securities sells these
securities to an investor with an agreement to repurchase them at a
fixed price on a fixed date.The security "buyer"in effect lends the
"seller"money for the period of the agreement,and the terms of the
agreement are structured to compensate him for this.Dealers use RP
extensively to finance their positions.Exception:When the Fed is
said to be doing RP,it is lending money that is increasing bank
reserves.
SAFEKEEPING:A service to customers rendered by banks for a fee whereby
securities and valuables of all types and descriptions are held in the
bank's vaults for protection.
SECONDARY MARKET:A market made for the purchase and sale of
outstanding securities issues following their initial distribution.
SECURITIES &EXCHANGE COMMISSION:Agency created by Congress to protect
investors in securities transactions by administering securities
legislation.
SEC RULE lSC3-1:See Uniform Net Capital Rule.
STRUCTURED NOTES:Notes issued by Government Sponsored Enterprises
(FHLB,FNMA,SLMA,etc.),and Corporations,which have imbedded options
(e.g.,call features,step-up coupons,floating rate coupons,
derivative-based returns)into their debt structure.Their market
performance is impacted by the fluctuation of interest rates,the
volatility of the imbedded options and shifts in the shape of the yield
curve.
STUDENT LOAN MARKETING ASSOCIATION (SLMA or Sallie Mae):A federally
established,publicly traded corporation which buys student loans from
colleges and other lenders,pools them,and sells them to investors.
TREASURY BILLS:A non-interest bearing discount security issued by the
U.S.Treasury to finance the national debt.Most bills are issued to
mature in three months,six months,or one year.
Page 14 of 15
OTAYWATER DISTRICT
BOARD OF DIRECTORS POLICY _.
Subject Policy Date Date
Number Adopted Revised
DISTRICT INVESTMENT POLICY 27 9/15/93 9/6/06
TREASURY BONDS:Long-term coupon-bearing u.S.Treasury securities
issued as direct obligations of the u.S.Government and having initial
maturities of more than 10 years.
TREASURY NOTES:Medium-term coupon-bearing u.S.Treasury securities
issued as direct obligations of the u.S.Government and having initial
maturities from two to 10 years.
UNIFORM NET CAPITAL RULE:Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of indebtedness to liquid capital
of 15 to 1;also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm,including margin loans
and commitments to purchase securities,one reason new public issues
are spread among members of underwriting syndicates.Liquid capital
includes cash and assets easily converted into cash.
YIELD:The rate of annual income return on an investment,expressed as
a percentage.(a)INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the security.(b)NET
YIELD or YIELD TO MATURITY is the current income yield minus any
premium above par or plus any discount from par in purchase price,with
the adjustment spread over the period from the date of purchase to the
date of maturity of the bond.
Page 15 of 15
Attachment C
OTAY
Portfolio Management
Portfolio Summary
June 30,2010
Investments
Corporate Notes
FederalAgency Issues-Callable
Certificates of Deposit -Bank
LocalAgency InvestmentFund (LAIF)
San Diego County Pool
Investments
Par Market Book %of Days to YTM YTM
Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv.
4,000,000.00 4,062,740.00 4,013,661.29 3.51 878 160 1.973 2.000
53,737,000.00 53,910,109.03 53,736,080.67 47.05 841 776 1.370 1.389
3,079,108.00 3,079,108.00 3,079,108.00 2.70 374 209 1.399 1.419
34,504,949.71 34,561,668.12 34,504,949.71 30.21 1 1 0.521 0.528
18,878,241 73 18,851,000.00 18,878,241.73 16.53 1 1 1.161 1.177
114,199,299.44 114,464,625.15 114,212,041.40 100.00%437 377 1.101 1.116
Cash
Passbook/Checking
(not included in yield calculations)
Total Cash and Investments
Total Earnings
Current Year
Average Daily Balance
Effective Rate of Return
1,083,666.90
115,282,966.34
June 30 Month Ending
111,070.47
114,478,980.76
1.18%
1,083,666.90
115,548,292.05
Fiscal Year To Date
1,089,321.33
80,930,143.63
1.35%
1,083,666.90
115,295,708.30 437
Fiscal Year Ending
1,089,321.33
377
0.140
1.101
0.142
1.116
I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on September 6,2006.The market
value information provided by Interactive Data Corporation.The investments provide sufficient liquidity to meet the cash flow requirements ofthe District for the next six months of expenditures.
~~fr-Lf-ro
Joseph Be§t~ncial.--Icer
RunDate:08/04/2010 15:21
Portfolio OTAY
AP
PM (PRF_PM1)SymRept6.41.200
ReportVer.5.00
Attachment D
DISTRICT INVESTMENT
POLICY
Policy #27
September 1,2010
I L
POLICY REVIEW
·Purpose:
~Annual Review
~Delegation of Investment Authority
·Analysis:
~No policy changes at this time
~Policy last changed 09-06-06
I L
INVESTMEN POLICY GUIDELINES
A.California Government Code:
»Sections 53600 through 53692
B.Investment Policy Certification:
~Association of Pu bl ic Treasu rers of the
United States &Canada (APT US&C)
I L
I L
INVES MENT PORTFOLIO:6/30/10
Authorized
$('0005)$/0/0 Actual 0/0
LAIF (Operating)$18,505 $40 Mil 16.05%
LAIF (Bonds)$16,000 100%13.88%
Govt.Agency Bonds $53,737 100%46.61 %
Corporate Notes $4,000 30%3.47%
Bank Deposits &CDs $4,163 15%3.61%,
San Diego County Pool $18,878 50%16.38%
TOTAL:$115,283
$4,162,775
__~3.61%
Otay Water District
Investment Portfolio:06/30/10
$57,737,000
50.08%-
~-
I
INVESTMENT PORTFOLIO:6/30/10
$53,383,191
46.31 %
o Banks (Passbook/Checking/CD).Pools (LAIF&County)EJAgencies &Corporate Notes
INVESTMENT PERFORMANCE
Fund Objectives
~Safety
~Liquidity
~Return on Investment
Fund Performance:FY-l0 FY-09
~OTAY:1.35%2.82%
~LAIF:0.65%2.22%
I L
REQUESTED BOARD ACTION
Re-delegate authority for all
investment related activities to the
Chief Financial Officer (CFO),in
accordance with Government Code
Section 53607.
I L
AGENDA ITEM 7d
TYPE MEETING:
SUBMITTED BY:
APPROVED BY:
(Chief)
APPROVED BY:
(Ass!.GM):
SUBJECT:
5TAFF REPORT
Regular Board MEETING DATE:September 1,2010
Kelli Williamson~W.O.lG.F.NO:DIV.NO.All
Human Resources Manager ~\~_
Rom Sarno,Chief of Administrati~vices
German Alva~ssistant General Manager,Finance and
Administration
Adopt Resolution No.4165 to implement loan provisions with
two 457 Deferred Compensation Plans:Nationwide Retiremenc
Solutions and ICMA Retirement Corporation.
GENERAL MANAGER'S RECOMMENDATION:
That the Board:
1)Adopt Resolution No.4165 to implement loan provisions for
Nationwide Retirement Solutions and ICMA Retirement
Corporation 457 Deferred Compensation Plans.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
That the Board of Directors adopt Resolution 4165 (Attachment B)to
implement loan provisions for Nationwide Retirement Solutions and
ICMA Retirement Corporation 457 Deferred Compensation Plans.
ANALYSIS:
The District currently has three 457 Deferred Compensation
Providers:Nationwide Retirement Solutions,ICMA Retirement
Corporation and PERS 457 Deferred Compensation.In an effort to
enhance our deferred compensation plans,the District solicited
information from all three providers regarding their loan
provisions.In reviewing the three programs and how they are
administered,it was decided that ICMA and Nationwide have more
similar programs and it is proposed that the District implement
loans from these two providers.
By having similar loan programs in place,this will allow for ease
of administration and monitoring of the loan programs by the
District.In order to ensure the District is in compliance with the
IRS regulations for the maximum loan allowance,the District will
only allow employees to take out one loan at a time against their
457 Deferred Compensation Plan.The loan will be for active
employees only and the maximum loan term will be for 5 years or 15
years if the loan is taken out for buying a residence.The minimum
amount of the loan will be $1,000 and per IRS guidelines the
maximum is 50%of the account balance or $50,000,reduced by the
highest outstanding balance of all loans from any 457 or 401 plan
during the one-year period ending on the day before the loan is
made.
While we have strived to maintain similarities in the two loan
programs,each provider does have their own distinct interest ~s
and loan set up fees.These loan fees will be clearly outlined in
the loan application documents that the employee will need to
submit in order to take out a loan.
The District believes that adding a loan provision to the two 457
Deferred Compensation Plans mentioned will be a positive
enhancement to our overall benefits program.
FISCAL IMPACT:
There is no fiscal impact to the District.If an employee is
interested in applying for a loan,the employee will incur the
applicable interest rates and loan fees issued by the provider
he/she chooses
STRATEGIC GOAL
Retaining a dedicated workforce.
LEGAL IMPACT:
None
Gen~ager
Attachment A -Committee Action
Attachment B -Resolution No.4165-To implement loans from 457
Deferred Compensation Plans
Attachment C -ICMA Retirement Corporation Loan Implementation
Forms
Attachment D -Nationwide Deferred Compensation Restated and
Amended Plan and Trust/Custodial Document
SUBJECT/PROJECT:
ATTACHMENT A
Approve Resolution No.4165 to implement 1 ~Luv~si
with two current 457 Deferred Compensation Plans (ICMA
Retirement Corporation and Nationwide Retirement
Solutions).
COMMITTEE ACTION:
The Finance,Administration,and Communications Committee
reviewed this item at a meeting held on August 23,2010 and the
following comments were made:
•
•
•
•
Staff has been working with Nationwide Retirement Solutions
and ICMA Retirement Corporation to provide loans as an
optional benefit to employees.The benefit would allow
employees to borrow against their 457 Deferred Compensation
Plans.
Employees would be allowed to borrow up to 50%of their 457
Deferred Compensation balance (up to $50,000)with a 5-year
repayment requirement.If the loan is for the employee's
principal residence,they would be allowed a repayment period
of 15 years.
Staff had forwarded information regarding the proposed new
benefit to the Employee Assocation and the Association
supports the enhanced benefit.If approved,representatives
from ICMA Retirement Corporation and Nationwide Retirement
Solutions would be invited to present information to employees
on the new benefit.
It was discussed the 457 Deferred Compensation accounts are
funded by the employees and the benefit would allow employees
to loan monies from their accounts.It was noted that there
would be no real cost to the District to add the new benefit
with the exception of staff time to forward applications to
the provider.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board on the consent
calendar.
ATTACHMENT B
RESOLUTION NO.4165
A RESOLUTION OF THE BOARD OF DIRECTORS
OF OTAY WATER DISTRICT
TO IMPLEMENT LOANS
FROM 457 DEFERRED COMPENSATION PLANS
WHEREAS,the Otay Water District presently provides its employees with the opportunity to
participate in deferred compensation plans in accordance with section 457 ofthe Internal Revenue Code;
and
WHEREAS,the District is authorized by federal law to permit participants in such plans to t~
loans from their respective plan accounts but has not previously permitted such loans;and
WHEREAS,the District now desires to permit plan participants to take loans from their
respective plan accounts,
NOW,THEREFORE,BE IT RESOLVED that the District hereby permits plan participants to
take loans from their respective plan accounts,to the extent permitted by federal and state law;
BE IT FURTHER RESOLVED that the District authorizes the General Manager to take all
actions necessary to enable plan participants to take loans from their respective plan accounts,including
but not limited to creating trusts,entering into contracts,and executing any necessary documents;
BE IT FURTHER RESOVLED that the District designates the General Manager to be the
coordinator ofall District deferred compensation programs;act as plan administrator ancl/or contract with
other persons to serve as plan administrators;receive necessary reports,notices,etc.in relation to such
plans or to trusts created to maintain plan funds;execute all necessary agreements;determine whether to
add,maintain,or eliminate a plan;perform administrative duties to carry out any plan;serve as the
District's trustee ancl/or representative for any trust created or maintained in conjunction with or relation
to a plan;cast,on behalfofthe District,any required votes;obtain such professional and/or legal advice
as may be necessary to ensure compliance with federal and state laws affecting deferred compensation
programs;and,at his/her discretion,delegate any or all of the foregoing responsibilities to the other
District employees.
PASSED,APPROVED AND ADOPTED by the Board ofDirectors ofthe Otay Water District at
a regular meeting held this 1st day of September,2010.
Ayes:
Noes:
Abstain:
Absent:
President
ATTEST:
District Secretary
ATTACHMENT C
Loan Guidelines Agreement
Name ofPlan (please state the Employer's complete name,inclnding state):_
Otay Water District -California
Plan Type:o 401 (a)Money Purchase Plan 0401 Profit-Shating Plan g 457 Deferred Compensation Plan
ICMA-RC Plan Number:_3J-lO.u4.wlI..l.4h::3>.-_
I.Purpose
The purpose of these guidelines is to establish the terms and conditions under which the Employer will grant loans to participants.This is
the only official Loan Provision Document of the above named Plan.
II.Eligibility
Loans are available to all active employees.Loans will not be granted to participants who have an existing loan in default.
Loans will be pro-rated among all the funds in which the participant is invested at the time the loan is made.
For 401 plans only:
Loans are available from the following sources:[select one or both]
o Employer Contribution Account (vested balances only)
iii Participant Contribution Accounts (pre-and post-tax,ifapplicable,including Employee Mandatory,Employee Voluntary,
Employer Rollover,and Portable Benefits Accounts,but excluding the Deductible Employee Contribution/Qualified Volun-
tary Employee Contribution Account)
For Roth 401 (k)plans only:
A participant's Designated Roth Account balance can be used to secure a participant loan.
Designated Roth Account balances [select one]
o will not (default option)be available as a source for loans under the Plan.
o will be available as a source for loans under the Plan.(Note:Using the Roth source for loans may have negative tax con-
sequences for participants.)
For all plan types:
Loans are available for the following purposes:[select one]
~All purposes
o Loans shall only be granted in the event ofa participant's hardship or for the purpose ofenabling a participant to meet
certain specified financial situations.The employer shall approve the participant's loan application after determining,based
on all relevant facts and circumstances,that the amount ofthe loan is not in excess ofthe amount required to relieve the fi-
nancial need.For this purpose,financial need shall include,but not be limited to:unreimbursed medical expenses ofthe par-
ticipant or members ofthe participant's immediate family,establishing or substantially rehabilitating the principal residence
ofthe participant,or paying for a college education (including graduate studies)for the participant or his/her dependents.
3
ICMA-RC
III.Frequency of loans [select one]
Q Participants may receive one loan per calendar year.Moreover,participants may have only one (1)outstanding loan at a time.
o Participants may receive one loan per calendar year.Moreover,no participant may have more than five (5)loans outstanding
at one time.
IV.Loan amount
The minimum loan amount is $1,000.
The maximum amount ofall loans to the participant from the plan and all other plans sponsored bythe Employer that are qualified
employer plans under section 72(p) (4)of the Code is the lesser of:
(1)$50,000,reduced by the highest outstanding balance ofall loans from any 401 or 457 plans for that participant during
the one-year period ending on the day before the date a loan is to be made,or
(2)one half ofthe participant's vested account balance,reduced by the current outstanding balance ofall 401 and 45J loans
from all plans for that participant.
Ifa participant has any loans outstanding at the time a new loan is requested,the new loan will be limited to the maximum amount calcu-
lated above reduced by the total of the outstanding loans.
A loan cannot be issued for more than the above amount.The participant's requested loan amount is subject to downward adjustment
without notice due to market fluctuation between the time ofapplication and the time the loan is made.
V.Length of loan
A loan must be repaid in substantially equal installments of principal and interest,at least monthly,over a period that does not
exceed five (5)years.
Loans for a principal residence must be repaid in substantially equal installments ofprincipal and interest,at
least monthly,over a period that does not exceed 15 years [state number ofyears]years (maximum 30 years).
VI.Loan repayment process
Loan repayments for active employees must be through (choose one):
o Payroll deduction only.
g ACH debit only.*
o Employee may choose either payroll deduction or ACH debit.*
Ifpayroll deduction repayment is allowed,and the employee wishes to use this method,the employee must notify the Employer
so that the Employer can ensure that repayment will begin as soon as practicable on a date determined by the Employer's payroll
cycle.Failure to begin payroll deduction in a timely way could lead to the employee's loan entering delinquency status.Payroll
deduction should begin within two payroll cycles following the employee's receipt of the loan.
*Please note a $20processingfee willbe assessed to a participant's ICMA-RCaccount when a scheduled loan repayment(s)via ACHis
rejected due to insufficientfunds,invalid bank account information,or account closure in theparticipant's designatedpaymentaccount.
4
Loan Guidelines Agreement
Repayments through payroll deduction will be sent via check or wire by the Employer to ICMA-RC on the following cycle
(choose one):
o Weekly (52 per year)
OBi-weekly (26 per year)o Semi-monthly (24 per year)o Monthly (12 per year)
IfACH debit repayment is allowed,debits from the employee's designated bank account will begin approximately one month fol-
lowing the date the employee's signed ACH authorization form is received and processed by ICMA-RC,or,in the case ofonline
loans,approximately one month following the date the loan check has been cleared for payment.Debits will normally be made on
a monthly basis.
Loans outstanding for former employees or employees on a leave ofabsence must be repaid on the same schedule as if payroll
deductions were still being made unless they reamortize their loans and establish a new repayment schedule that provides tkat sub-
stantially equal payments are made at least monthly over the remaining period of the loan.-
Loan payments,including loan payments from former employees,are allocated to the participant's current election of inv;'tment
options on file with ICMA-RC.
The participant may payoffall or a portion ofthe principal and interest early without penalty or additional fee.Extra payments
are applied forward to both principal and interest as specified in the original repayment schedule,unless the additional payment is
for the balance due.
VII.loan interest rate
The rate ofinterest for loans offive (5)years or less will be based on prime plus 0.5%.
The rate of interest for loans for a principal residence will be based on the FHA/VA rate.
Interest rates are determined on the last business day of the month preceding the month the loan is disbursed.The interest rate is
locked in at the time a loan is approved and remains constant throughout the life of the loan.
The prime interest rate is determined on the last business day ofeach month using www.nfsn.com as the source.The FHNVA
interest rate is also determined on the last business day ofeach month using www.bankofamerica.com as the source.
Loan interest rates for new loans taken in different months may fluctuate upward or downward monthly,depending on the move-
ment ofthe prime and FHA/VA interest rates.
The employer may modifY the manner in which loan interest rates will be determined,but only with respect to future loans.
VIII.loan application procedure
Loans must be requested using the following method (check one):
o Online only:All loans must be requested online by employees through ICMA-RC's Account Access site at
www.icmarc.org,with Employer pre-authorization as outlined in italics below.
Ifan employee is married at the time ofapplication,and spousal consent is required by the Plan for the loan,the employ-
ee's spouse must consent,in writing,to the loan and the consent must be witnessed by a plan representative or notary
public.Such consent must be received in writing by ICMA-RC no more than ninety (90)days before the loan request is
submitted through Account Access.
The promissory note,truth-in-Iending rescission notice and disclosure statement are presented to the employee online
through Account Access at the time the employee submits the loan request.The employee confirms receipt and acceptance
ofthese documents by clicking on the affirmative buttons on the Account Access program.
5
ICMA-RC
The employer hereby authorizes allfuture loans requested through the onlineprocess via Account Access,as wellas any requests
that employees submit on paper forms,pending review ofthe application by ICMA-RC Notice ofloan issuance will be provided
to the Employer via reports posted on the EZLink site.
The loan amount will generally be redeemed from the employee's account on the same day as the employee's successful
submission ofthe loan request through Account Access,if it is submitted prior to 4:00 p.m.ET on a business day.Ifnot,
the loan amount will be redeemed on the next business day following submission.The loan check is generally issued on
the next business day following redemption,and will be mailed directly to the employee.The employee's presentment of
the loan check for payment constitutes an acknowledgment that the employee has received and read the loan disclosure
information provided by ICMA-RC and agrees to the terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment ofthe loan check for payment.
o Online and through Direct Loan application:All loans must be requested either online by employees through
ICMA-RC's Account Access site at www.icmarc.org,or through the Direct Loan application,both ofwhich require pre-
authorization by the Employer as outlined in italics below.
Ifan employee is married at the time ofapplication,~and spousal consent is required by the Plan for the loan,the etnploy-
ee's spouse must consent,in writing,to the loan and the consent must be witnessed by a plan representative or notary
public.Such consent must be received in writing by ICMA-RC no more than ninety (90)days before the loan request is
submitted through Account Access.In the case ofthe Direct Loan Application,spousal consent should be sent along with
the application.
The promissory note,truth-in-lending rescission notice and disclosure statement are mailed to the employee along with
the issued loan check.The employee confirms receipt and acceptance of these documents and terms at the time the en-
dorsed check is presented for payment.
The Employer hereby authorizes allfuture loans requested through the online process via AccountAccess,as well as any requests
that employees submit on paperforms,pending review ofthe application by ICMA-RC Notice ofloan issuance will be provided
to the Employer via reports posted on the EZLink site.
The loan amount will generally be redeemed from the employee's account on the same day as either ICMA-RC's receipt
ofa loan application (complete and in good order),or the employee's successful submission of the loan request through
Account Access,if it is submitted prior to 4:00 p.m.ET on a business day.Ifnot,the loan amount will be redeemed on the
next business day following submission.The loan check is generally issued on the next business day following redemption,
and will be mailed directly to the employee.The employee's presentment ofthe loan check for payment constitutes an ac-
knowledgment that the employee has received and read the loan disclosure information provided by ICMA-RC and agrees
to the terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment ofthe loan check for payment.
o Direct Loan application only:All loans must be requested through the Direct Loan application,which requires pre-
authorization by the Employer as outlined in italics below.
Ifan employee is married at the time ofapplication,and spousal consent is required by the Plan for the loan,the employ-
ee's spouse must consent,in writing,to the loan and the consent must be witnessed by a plan representative or notary
public.Such consent must be received in writing by ICMA-RC along with the Direct Loan Application.
The promissory note,truth-in-lending rescission notice and disclosure statement are mailed to the employee along with
the issued loan check.The employee confirms receipt and acceptance ofthese documents at the time the endorsed check is
presented for payment.
The employer hereby authorizes allfuture loans requested on paperforms,pending review ofthe application by ICMA-RC Notice
ofloan issuance will be provided to the Employer via reports posted on the EZLink site.
The loan amount will generally be redeemed from the employee's account on the same day as ICMA-RC's receipt ofa loan
application (complete and in good order).
6
Loan Guidelines Agreement
The loan check will generally be issued from the employee's account on the next business day following redemption.The
loan check will be mailed directly to the employee.The employee's presentment of the loa,n check for payment constitutes
an acknowledgment that the employee has received and read the loan disclosure information provided by lCMA-RC and
agrees to the terms therein.
Loan repayment will begin as soon as practicable following the employee's presentment ofthe loan check for payment.
KJ Loan application through the Employer:All loans must be requested in writing on an application approved by the plan
administrator.The application must be signed by the participant.The Employer musr review and approve each partici-
pant's application.
The participant will be required to sign a promissory note evidencing the loan and a disclosure statement that includes
an amortization schedule prior to receiving a loan check.Loan checks will generally be issued on the next business day
following lCMA-RC's receipt ofa complete loan application.The loan check,promissory note,disclosure statement and
truth-in-lending rescission notice will be sent to the employer,who will obtain the necessary signatures and deliver the
check to the participant.All executed documents must be returned to lCMA-RC within 10 calendar days from the oote
the check is issued..-
IX.Security/Collateral
That portion ofa participant's account balance that is equal to the amount ofthe loan is used as collateral for the loan.The col-
lateral amount may not exceed 50 percent ofthe participant's account balance at the time the loan is taken.Only the portion of the
account-balance that corresponds to the amount of the outstanding loan balance is used as collateral.
X.Acceleration [select one]
o All loans are due and payable in full upon separation from service.
mJ All loans are due and payable when a participant receives a distribution ofall ofhis/her account balance after separa-
tion from service.The amount ofthe outstanding loan balance will be reported as a distribution in addition to the
amount of cash distributed from the plan.
o All loans are due and payable when a participant receives a distribution ofpart ofhis/her account balance after separa-
tion from service.The amount of the outstanding loan balance will be reported as a distribution in addition to the
amount ofcash distributed from the plan.
XI.Reamortization
Any outstanding loan may be reamortized.Reamortization means changing the terms ofa loan,such as length ofrepayment peri-
od,interest rate,and frequency of repayments.A loan may not be reamortized to extend the length ofthe loan repayment period to
more than five (5)years from the date the loan was originally made,or in the case ofa loan to secure a principal residence,beyond
the number ofyears specified by the employer in Section V above.
A participant must request the reamortization ofa loan in writing on a reamortization application acceptable to the plan adminis-
trator.Upon processing the request,a new disclosure statementwill be sent to the employer for endorsement by the participant and
approval by the employer.The executed disclosure statement must be returned to the plan administrator within 10 calendar days
from the date it is signed.The new disclosure statement is considered an amendment to the original promissory note,therefore a
new promissory note will not be required.
A reamortization will not be considered a new loan for purposes of calculating the number of loans outstanding or the one loan per
calendar year limit.
7
leMA-Re
XII.Refinancing existing loans
Ifa participant has one outstanding loan,that loan may be refinanced.Ifa participant has more than one outstanding loan,no
loans may be refinanced.Refinancing means concurrently repaying an existing loan and borrowing an additional amount through
a new loan.Refinancing includes any situation in which one loan replaces another loan and the term of the replacement loan does
not exceed the latest permissable term ofthe replaced loan.
In order to refinance an existing loan,a participant must request this in writing on an application approved by the plan administra-
tor.Such request must be made at a time when the participant is eligible to obtain a loan as defined by the employer in Section III
above.The amount ofthe additional loan amount requested for the purpose ofrefinancing is subject to the loan limits specified in
Section IV above.
Because a refinancing is considered a new loan,only active employees may refinance an outstanding loan.
XIII.Reduction of Loan
If a participant dies prior to full repayment ofthe outstanding loan(s),the outstanding loan balance(s)will be deducted from the
account prior to distribution to the beneficiary(ies).The unpaid loan amount is a taxable distribution and may be subject to early
withdrawal penalties.The participant's estate is responsible for taxes or penalties on the unpaid loan amount,ifany.A benetrciary
is responsible for taxes due on the amount he or she receives.A Form 1099 will be issued to both the beneficiary and the estate for
these purposes.
XIV.Deemed Distribution
Loan repayments must be made in accordance with the plan document,plan loan guidelines,and as reflected in the promissory
note signed by the participant.Ifa scheduled payment is not paid within 30,60,and/or 90 days of the due date,a notice will be
sent to both the employee and the employer.
A loan will be deemed distributed when a scheduled payment is still unpaid at the end ofthe calendar quarter following the calen-
dar quarter in which the payment was due.Ifthe total amount ofany delinquent payment is not received by ICMA-RC by the end
ofthe calendar quarter following the calendar quarter in which they payment was due,the loan is considered a taxable distribution,
and the principal balance,in addition to any accrued interest,is reported as a distribution to the IRS.However,no money is paid
in this distribution,because the participant already has the loan proceeds.
The loan is deemed distributed for tax purposes,but it is not an actual distribution and therefore remains an asset ofthe partici-
pant's account.Interest continues to accrue.The outstanding loan balance and accrued interest are reported on the participant's
account statement.
Repayment of a deemed distribution will not change or reverse the taxable event.
The loan continues to be outstanding,and to accrue interest,until it is repaid or offset using the participant's account balance.An
offset can occur only ifthe participant is eligible to receive a distribution from the plan as outlined in the plan document.
Participants are required to repay any outstanding loan which has been deemed distributed before they can be eligible for a new
loan.The deemed distribution and any interest accrued since the date it became a taxable event is taken into account when deter-
mining the maximum amount available for a new loan.Newloans must be repaid through payroll deduction.
8
Loan Guidelines Agreement
The employer is obligared by federal regularion to comply with the loan guideline requirements applicable to participant loans,and
to ensure against deemed distribution by monitoring loan repayments,regardless ofthe method ofrepayment,and by advising em-
ployees ifloans are in danger ofbeing deemed distributed.The tax-qualified status or eligibility of the entire plan may be revoked
in cases offrequent repayment delinquency or deemed distribution.
xv.Fees
Fees may be charged for various services associated with the application for and issuance ofloans.All applicable fees will be debited
from the participant's account balance and/or from the participant's loan repayments prior to crediting the repayment ofprincipal
and interest to the participant's account.A schedule offees applicable to this plan is specified in ICMA-RC's current publication of
Making SoundInvestment Decisions:A Retirement Investment Guide.
XVI.Other
The employer has the right to set other terms and conditions as it deems necessary for loans from the plan in order to comply with
any legal requirements.All terms and conditions will be administered in a uniform and non-discriminatory manner.
In Witness Whereof,the employer hereby caused these Guidelines to be executed this _-=l"'s'-'t=---~ay
of September
EMPLOYER
By:Mark Watton
Title:General Manager
Attest:
,20 ....10"--_
9
Accepted:ICMA RETIREMENT CORPORATION
By:
Title:
Attest:
ATTACHMENT D
OTAYWATERDISTRICT 457 PLAN AND TRUST
RESTATED AND AMENDED
DEFERRED COMPENSATION PLAN AND TRUST/CUSTODIAL DOCUMENT
FOR PUBLIC EMPLOYEES
LOANS TO PARTICIPANTS AMENDMENT TO NATIONWIDE RETIREMENT
SOLUTIONS PLAN DOCUMENT
WHEREAS,The Otay Water District ("Plan Sponsor")executed the above referenced Plan
Document,as amended;and
WHEREAS,effective September 1,2010,the Plan Sponsor now desires to further amend
the plan document.
The following Section 16.1 is hereby added:
16.1 Loans to Participants
(a)The Authority has elected to make loans available to Participants and has
delegated certain administrative duties regarding loans from the Plan to the
Administrator.
(b)Any loan by the Plan to a Participant under this Section shall be subject to the
loan administrative procedures established by the Administrator as well as the
following requirements:
(i)Loan Eligibility.Any Eligible Active Employee Participant may apply
for a loan from the Plan.A Participant who has defaulted on a previous
loan from the Plan shall not be eligible for another loan from the Plan
until all defaulted loans are repaid in full,induding accrued interest
and fees.
(ii)Loan Application and Loan Agreement.A Participant must complete
and return to the Employer (Plan Sponsor)a loan application.A non-
refundable application fee established by the Administrator will be
deducted from the Participant's Account(s)at the time ofloan
origination.Before a loan is issued,the Participant must enter into a
legally enforceable loan agreement as provided for by the
Administrator.
(iii)Loan Repayment.The Participant receiving a loan shall be required to
furnish to the Administrator any information and authorization
necessary to effectuate repayment ofthe loan prior to the
commencement ofa loan.In the event that a payment cannot be
processed because oflack of sufficient funds,the Administrator shall
1
ATTACHMENT D
assess an insufficient funds charge,which will be deducted from the
Participant's Account(s).
(iv)Loan Term and Interest Rate.The maximum term over which a loan
may be repaid is five (5)years (or fifteen (15)years if Otay Water
District permits loans for the purchase ofa Participant's principal
residence).Each loan shall be amortized in substantially equal
payments consisting ofprincipal and interest during the term ofthe
loan,except that the amount ofthe final payment may be higher or
lower.The Administrator shall establish the interest rate for any loan.
(v)Loan Frequency.Each Participant may have only one (1)Plan loan
outstanding at any given time.A Plan loan which is in default,even if
the defaulted loan was treated as a "deemed distribution"under federal-
regulations,shall be treated as an outstanding loan until such
Participant's account balance is offset by the amount ofprincipal and
accrued interest under the loan.
(vi)Default.The Participant must pay the full amount ofeach loan
payment (principal and interest)on the date that it is due.Failure to
make such a payment by the due date,or within any cure period
established by the Administrator,shall cause the Participant to be in
default for the entire amount ofthe loan,including any accrued
interest.A loan will also be in default ifthe Participant either refuses
to execute,revoke,or rescind any agreement necessary to comply with
the provisions ofthis Section or the loan administrative procedures
established by the Administrator,commences or has commenced
against Participant a bankruptcy case,or upon the death ofthe
Participant.
(vii)Loan Security.By accepting a loan,the Participant is giving a security
interest in their vested Plan balance as ofthe loan process date,
together with all additions thereof,to the Plan that shall at all times be
equal to one hundred percent (100%)of the unpaid principal balance
ofthe loan together with accrued interest.
(viii)Loan Amount.The maximum amount ofany loan permitted under the
Plan is the lesser of(i)fifty percent (50%)ofthe Participant's vested
account balance less any outstanding loan balances under the Plan or
(ii)$50,000.00 less the highest outstanding loan balance during the
preceding one-year period,The minimum loan amount shall be
$1,000.00.The Participant and not the Administrator shall at all times
remain responsible for ensuringthat any loan received under the Plan
is in accordance with these limits with regard to any other loans
received by the Participant under any other plans of the Otay Water
District.
2
ATTACHMENT D
(ix)Loan Maintenance Fee.Until a loan is repaid in full,an annual loan
maintenance fee established by the Administrator win be deducted
from the Participant's Account(s).
(x)Loan Default Fee.At the time when a default occurs,a Loan Default
Fee established by the Administrator will be deducted from the
Participant's Account(s).This Loan Default Fee will be applied on an
annual basis thereafter on the anniversary ofthe default date until the
loan is repaid upon the occurrence ofa distributable event.
(c)The Administrator shall fix such other terms and conditions necessary to the
administrative maintenance ofthe provisions ofthis Section and as necessary to
comply with the IRC and regulations there under.
IN WITNESS WHEREOF,the undersigned has executed this Amendment this First day
ofSeptember,2010.
Otay Water District:
By:Mark Watton,General Manager
3
AGENDA ITEM 7e
STAFF REPORT
DIV.NO.ALL
September 1,2010
W.O.lG.F.NO:
MEETING DATE:TYPE MEETING:Regular Board
SUBMITTED BY:Yuri A.Calderon,
General Counsel
APPROVED BY:Mark Watton,General Manager
(GM):
SUBJECT:ADOPT ORDINANCE NO.526 AMENDING SECTION 6,CONFLICT OF
INTEREST CODE,OF THE DISTRICT'S CODE OF ORDINANCES
GENERAL COUNSEL'S RECOMMENDATION:
That the Board adopt Ordinance No.526 amending Section 6,
Conflict of Interest Code,of the District's Code of Ordinances.
The amendments are reflected in Exhibit A of Attachment B.
COMMITTEE ACTION:
None.
PURPOSE:
To amend the Appendix of the Conflict of Interest Code contained
within the District's Code of Ordiances to expand the list of
positions required to file a Form 700.
ANALYSIS:
As required by the Political Reform Act ("Act"),the General
Counsel has conducted a biennial review of the District's
Conflict of Interest Code ("COl Code")and the body of the code
requires no updates.However,the District desires to expand
the list of positions required to file a Form 700.It has been
determined that the titles of the positions identified in
Exhibit A of Attachment B participate in the making of decisions
that may have a material effect on financial interest as
established by the District's COl Code and,as such,should file
a Form 700.The titles of the designated employees have been
added to the Appendix of the COl Code,as reflected in Exhibit A
to Attachment B to this staff report.
-~tRWiJCGeneralManigerC
Attachments:
Attachment A:Committee Action
Attachment B:Ordinance No.526,Amending Conflict of
Interest Code
ATTACHMENT A
ADOPT ORDINANCE NO.526 AMENDING SECTION 6,CONFLICT OF
SUBJECT/PROJECT:INTEREST CODE,OF THE DISTRICT'S CODE OF ORDINANCES
COMMITTEE ACTION:
The Finance,Administration,and Communications Committee
reviewed this item at a meeting held on August 23,2010 and the
following comments were made:
•
•
•
It was indicated that State statute requires that agencies
maintain conflict of interest provisions and that it be
periodically reviewed and updated.
There are no updates to the body of the policy,however,
positions have been added that are designated to file a Form
700 annually.As these positions participate in the review
process for the awarding of contracts,it is felt that they
should be included in the Conflict of Interest Code.The
positions are reflected in Exhibit A to Attachment B to this
staff report.
There was discussion that immediate family refers to spouse
and children within the policy as per State statute.It was
requested that General Counsel review the language and whether
to expand immediate family to include employees'siblings.
Following the discussion,the committee supported staffs'
recommendation and presentation to the full board on the consent
calendar.
ATTACHMENT B
ORDINANCE NO.526
AN ORDINANCE OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
AMENDING THE DISTRICT'S
CONFLICT OF INTEREST ORDINANCE
BE IT ORDAINED by the Board ofDirectors ofOtay Water that the following Section of
the District's Code of Ordinances be amended as follows:
OTAY WATER DISTRICT
CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS
The Treasurer and all District Officials who manage the investment of
public funds are included in and governed by this Conflict of Interest
Code only with respect to its disqualification provisions.For
purposes of disclosure,the Treasurer and all District Officials who
manage the investment of public funds are governed by the statutory
conflict of interest provisions of Article 2 of Chapter 7 of the
Political Reform Act of 1974.(Government Code Sections 87200,et
seq.)
DESIGNATED EMPLOYEES'
TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED
Members of the Board of Directors
General Manager
Secretary of District
Asst.General Manager,
Finance and Administration
Asst.General Manager,
Engineering and Operations
Chief of Administrative Services
Chief Financial Officer
Chief Information Officer
Chief of Engineering
1,2,3,4,5,6
1,2,3,4,5,6
6
1,2,3,4,5,6,7
1,2,3,4,6,7
1,2,3,4,5,6
1,2,5,7
1,3,7
1,2,3,4,7
7 Designated Persons are prohibited from accepting gifts from any single source in a calendar year with a
total value in excess of designated amounts.See Govt.Code §89503,sub-divisions (e),(f)and (g).
[Note:Pursuant to 2 CCR §18940.2 (b),the FPPC adjusts the gift limit every odd-numbered year to reflect
changes in the Consumer Price Index;therefore,the $390 limit adopted by the FPPC in January of 2007 will
be updated in January 2009 and every odd year thereafter,until further notice.
Page 1 of3
Chief of Water Operations
Associate Civil Engineer
Communications Officer
Environmental Compliance
Specialist
Engineering Manager/Design,
Construction,and Planning
Engineering Manager/Water
Resources
Finance Manager,Controller,
and Budget
Finance Manager,Treasury,
and Accounting
GIS Manager
Human Resources Manager
IT Operations Manager
Network Engineer
Public Services Manager
Purchasing and Facilities Manager
Senior Buyer
Senior Civil Engineer
System Operations Manager
Utility Services Manager
Water Conservation Manager
Consultantl
1,2,3,4,7
1,2,3,4,7
6
1,2,3,4,7
1,2,3,4,7
1,2,3,4,7
2,5,7
2,5,7
3,6,7
3,6
3,6,7
3,6,7
1,2,3,4,7
2,6
6
1,2,3,4,7
1,2,3,4,7
1,2,3,4,7
2,3,4,6
1,2,3,4,5,6
1 Consultants are required to file disclosure statements where they:(a)conduct research and arrive at
conclusions with respect to rendition of information,advice,recommendation or counsel independent of
control and direction of the agency or any agency official other than normal contract monitoring;and (b)
possess no authority with respect to any agency decision beyond the rendition of information,advice,
recommendation or counsel.The determination as to whether a consultant shall be required to file a
disclosure statement shall be made by the General Manager or his or her designee.
2
NOW,THEREFORE,BE IT RESOLVED DETERMINED AND ORDFJlliD by the Board of
Directors ofthe Otay Water District as follows:
1.The existing Section 6,Conflict ofInterest Code,ofthe District's Code ofOrdinance is hereby
amended as set forth in Exhibit A attached hereto;and
2.The District Secretary is authorized and directed to file the amended Conflict ofInterest Code with
the Clerk ofthe Board ofSupervisors ofthe County ofSan Diego;and
3.The General Manager and the District Secretary are hereby ordered to take any and all actions and
steps necessary to carry out the provisions ofthis ordinance;and
4.This Ordinance shall become effective immediately upon adoption.
PASSED,APPROVED AND ADOPTED by the board ofDirectors ofthe Otay Water Distri(j at
a regular meeting duly held this 1st day ofSeptember,2010,by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
President ofthe Board ofDirectors
ATTEST:
Secretary
3
EXHIBIT A
DIVISION I DISTRICT ADMINISTRATION
CHAPTER 5 PERSONNEL PRACTICES
SECTION 6 CONFLICT OF INTEREST CODE
6.01 DEFINITIONS
The definitions contained in the Political Reform Act of 1974,
regulations of the Fair Political Practices Commission (2 Cal.Code of
Regs.Sections 18100,et seq.),and any amendments to the Act or
regulations,are incorporated by reference into this conflict of
interest code.
6.02 DESIGNATED EMPLOYEES
The persons holding positions listed in the Appendix are
designated employees.It has been determined that these persons make
or participate in the making of decisions which may foreseeably have a
material effect on financial interests.
6.03 DISCLOSURE CATEGORIES
This Code does not establish any disclosure obligation for those
designated employees who are also specified in Government Code Section
87200 if they are designated in this code in that same capacity or if
the geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction in which those persons must
report their financial interest pursuant to Article 2 of Chapter 2 of
the Political Reform Act,Government Code Sections 87200,et seq.1 In
addition,this code does not establish any disclosure obligation for
any designated public officials who are designated in a conflict of
interest code for another agency,if all of the following apply:
(A)The geographical jurisdiction of this agency is the same as
or is wholly included within the jurisdiction of the other agency;
(B)The disclosure assigned in the code of the other agency is
the same as that required under article 2 of chapter 7 of the
Political Reform Act,Government Code Section 87200;and
(C)The filing officer is the same for both agencies.
1 Designated employees who are required to file statements of economic interest under
any other agency's Conflict of Interest Code or under Article 2 for a different
jurisdiction,may expand their statement of "economic interests to cover reportable
interest in both jurisdictions,and file copies of this expanded statement with both
entities in lieu of filing separate and district statements,provided that each copy
of such expanded statement filed in place of an original is signed and verified by
the designated employee as if it were an original.See Government Code Section
81004.
6-1
Such persons are covered by this Code for disqualification
purposes only.with respect to all other designated employees,the
disclosure categories set forth in the Appendix specify which kinds of
financial interest are reportable.Such a designated employee shall
disclose in his or her statement of economic interest those financial
interests he or she has which are of the kind described in the
disclosure categories to which he or she is assigned in the Appendix.
It has been determined that the financial interests set forth in a
designated employee's disclosure categories are the kinds of financial
interest which he or she foreseeably can affect materially through the
conduct of his or her office.
6.04 STATEMENTS OF ECONOMIC INTERESTS:PLACE OF FILING
All officials and employees required to submit a statement o~
economic interest (employees in Designated Positions)shall file the~r
statements with the General Manager,or his or her designee.The
District shall make and retain a copy of all statements filed by
Designated Positions and forward the originals of such statements to
the Executive Office of the Board of Supervisors of San Diego County.
All retained statements,originals or copies shall be available for
public inspection and reproduction.(Cal.Gov't Code §81008)2
6.05 STATEMENTS OF ECONOMIC INTERESTS:TIME OF FILING
(A)Initial Statements.All designated employees employed by
the agency on the effective date of this code,as originally adopted,
promulgated and approved by the code reviewing body,shall file
statements within 30 days after the effective date of this code.
Thereafter,each person already in a position when it is designated by
an amendment to this code shall file an initial statement within 30
days after the effective date of the amendment.
(B)Assuming Office Statements.All persons assuming designated
positions after the effective date of this code shall file statements
within 30 days after assuming the designated positions,or if subject
to State Senate confirmation,30 days after being nominated or
appointed.
(C)Annual Statements.All designated employees shall file
statements no later than April 1.
(D)Leaving Office Statements.All persons who leave designated
positions shall file statements within 30 days after leaving office.
2 See Government Code section 81010 and 2 Cal.Code of Regs.section 18115 for the
duties of filing officers and persons in agencies who make and retain copies of
statements and forward the originals to the filing officer.
6-2
6.06 STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE
Any person who resigns within 12 months of initial appointment,
or within 30 days of the date of notice provided by the filing officer
to file an assuming office statement,is not deemed to have assumed
office or left office,provided he or she did not make or participate
in the making of,or use his or her position to influence any decision
and did not receive or become entitled to receive any form of payment
as a result of his or her appointment.Such persons shall not file
either an assuming or a leaving office statement.
(A)Any person who resigns a position within 30 days of the date
of a notice from the filing officer shall do both of the following:
1.File a written resignation with the appointing power;a~
2.File a written statement with the filing officer declaring-
under penalty of perjury that during the period between
appointment and resignation he or she did not make,
participate in the making,or use the position to influence
any decision of the agency or receive,or become entitled to
receive,any form of payment by virtue of being appointed to
the position.
6.07 CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC
INTERESTS
(A)Contents of Initial Statements
Initial statements shall disclose any reportable investments,
interests in real property and business positions held on the
effective date of the code and income received during the 12 months
prior to the effective date of the code.
(B)Contents of Assuming Office Statements
Assuming office statements shall disclose any reportable
investments,interests in real property and business positions held on
the date of assuming office or on the date of appointment,and income
received during the 12 months prior to the date of assuming office or
the date of being appointed,respectively.
(C)Contents of Annual Statements
Annual statements shall disclose any reportable investments,
interests in real property,income and business positions held or
received during the previous calendar year provided,however,that the
period covered by an employee's first annual statement shall begin on
the effective date of the code or the date of assuming office,
whichever is later.
6-3
(D)Contents of Leaving Office Statements
Leaving office statements shall disclose reportable investments,
interest in real property,income and business positions held or
received during the period between the closing date of the last
statement filed and the date of leaving office.
6.08 MANNER OF REPORTING
Statements of economic interest shall be made on forms prescribed
by the Fair Political Practices Commission and supplied by the agency,
and shall contain the following information:
(A)Investments and Real Property Disclosure
When an investment or an interest in real property3 is requiredko
be reported4 ,the statement shall contain the following:
1.A statement of the nature of the investment or interest;
2.The name of the business entity in which each investment is
held,and a general description of the business activity in
which the business entity is engaged;
3.The address or other precise location of the real property;
4.A statement whether the fair market value of the investment
or interest in real property exceeds two thousand dollars
($2,000),exceeds ten thousand dollars ($10,000),exceeds
one hundred thousand dollars ($100,000),or exceeds one
million dollars ($1,000,000)
(B)Personal Income Disclosure
When personal income is required to be reported5,the statement
shall contain:
3 For the purpose of disclosure only (not disqualification),an interest in real
property does not include the principal residence of the filer.
4 Investments and interests in real property which have a fair market value of less
than $2,000 are not investments and interests in real property within the meaning of
the Political Reform Act.However,investments or interests in real property of an
individual include those held by the individual'~spouse and dependent children as
well as a pro rata share of any investment or interest in real property of any
business entity or trust in which the individual,spouse and dependent children own,
in the aggregate,a direct,indirect or beneficial interest of 10 percent or greater.
5 A designated employee's income includes his or her community property interest in
the income of his or her spouse but does not include salary or reimbursement for
expenses received from a state,local or federal government agency.
6-4
1.The name and address of each source of income aggregating
$500 or more in value or $50 or more in value if the income
was a gift,and a general description of the business
activity,if any,of each source;
2.A statement whether the aggregate value of income from each
source,or in the case of a loan,the highest amount owed to
each source,was one thousand dollars ($1,000)or less,
greater than one thousand dollars ($1,000),greater than ten
thousand dollars ($10,000),or greater than one hundred
thousand dollars ($100,000);
3.A description of the consideration,if any,for which the
income was received;
4.In the case of a gift,the name,address and business
activity of the donor and any intermediary through which the
gift was made;a description of the gift;the amount or
value of the gift;and the date on which the gift was
received;
5.File In the case of a loan,the annual interest rate and the
security,if any,given for the loan.
(e)Business Entity Income Disclosure
When income of a business entity,including income of a sole
proprietorship is required to be reported6 ,the statement shall
contain:
1.The name,address and a general description of the business
activity of the business entity;
2.The name of every person from whom the business entity
received payments if the filer's pro rata share of gross
receipts from such person was equal to or greater than
$10,000.
(D)Business Position Disclosure
When business positions are required to be reported,a designated
employee shall list the name and address of each business entity in
6 Income of a business entity is reportable if the direct,indirect or beneficial
interest of the filer and the filer's spouse in the business entity aggregates a 10
percent or greater interest.In addition,the disclosure of persons who are clients
or customers of a business entity is required only if the clients or customers are
within one of the disclosure categories of the filer.
6-5
which he or she is a director,officer,partner,trustee,employee or
in which he or she holds any position of management,a description of
the business activity in which the business entity is engaged,and the
designated employee's position with the business entity.
(E)Acquisition or Disposal During Reporting Period
In the case of an annual or leaving office statement,if an
investment or an interest in real property was partially or wholly
acquired or disposed of during the period covered by the statement,
the statement shall contain the date of acquisition or disposal.
6.09 PROHIBITION ON RECEIPT OF HONORARIA
A.No designated public official shall accept any honorarium from _
any source,if the member or employee would be required to report-rhe
receipt of income or gifts from that source on his or her statement of
economic interests.
Subdivisions (a),(b),and (c)of Government Code Section 89501 shall
apply to the prohibitions in this section.
This section shall not limit or prohibit payments,advances,or reim-
bursements for travel and related lodging and subsistence authorized
by Government Code section 89506.
6.10 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF AMOUNT
ESTABLISHED BY LAW7
A.No designated public official shall accept gifts with a total
value of more than the maximum amount established by law,in any
calendar year,from any single source,if the member or employee would
be required to report the receipt of income or gifts from that source
on his or her statement of economic interests.
Subdivisions (e),(f),and (g)of Government Code section 89503 shall
apply to the prohibitions in this section.
6.11 LOANS TO PUBLIC OFFICIALS
A.No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that
he or she vacates office,receive a personal loan from any officer,
employee,member,or consultant of the state or local government
7 Designated Persons are prohibited from accepting gifts from any single source in a
calendar year with a total value in excess of designated amounts.See Govt.Code §
89503,sub-divisions (e),(f)and (g).[Note:Pursuant to 2 CCR §18940.2 (b),the
FPPC adjusts the gift limit every odd-numbered year to reflect changes in the
Consumer Price Index;therefore,the $390 limit adopted by the FPPC in January of
2007 will be updated in January 2009 and every odd year thereafter,until further
notice.]
6-6
agency in which the elected officer holds office or over which the
elected officer's agency has direction and control.
B.No public official who is exempt from the state civil service
system pursuant to subdivisions (c),(d),(e),(f),and (g)of Section·
4 of Article VII of the Constitution shall,while he or she holds
office,receive a personal loan from any officer,employee,member,or
consultant of the state or local government agency in which the public
official holds office or over which the public official's agency has
direction and control.This subdivision shall not apply to loans made
to a public official whose duties are solely secretarial,clerical,or
manual.
C.No elected officer of a state or local government agency shall,
from the date of his or her election to office through the date that_
he or she vacates office,receive a personal loan from any person~
has a contract with the state or local government agency to which that
elected officer has been elected or over which that elected officer's
agency has direction and control.This subdivision shall not apply to
loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card
transaction,if the loan is made or the indebtedness created in the
lender's regular course of business on terms available to members of
the public without regard to the elected officer's official status.
D.No public official who is exempt from the state civil service
system pursuant to subdivisions (c),(d),(e),(f),and (g)of Section
4 of Article VII of the Constitution shall,while he or she holds
office,receive a personal loan from any person who has a contract
with the state or local government agency to which that elected
officer has been elected or over which that elected officer's agency
has direction and control.This subdivision shall not apply to loans
made by banks or other financial institutions or to any indebtedness
created as part of a retail installment or credit card transaction,if
the loan is made or the indebtedness created in the lender's regular
course of business on terms available to members of the public without
regard to the elected officer's official status.This subdivision
shall not apply to loans made to a public official whose duties are
solely secretarial,clerical,or manual.
E.This section shall not apply to the following:
1.Loans made to the campaign committee of an elected officer
or candidate for elective office.
2.Loans made by a public official's spouse,child,parent,
grandparent,grandchild,brother,sister,parent-in-law,brother-in-
law,sister-in-law,nephew,niece,aunt,uncle,or first cousin,or
the spouse of any such persons,provided that the person making the
6-7
loan is not acting as an agent or intermediary for any person not
otherwise exempted under this section.
3.Loans from a person which,in the aggregate;do not exceed
five hundred dollars ($500)at any given time.
6.12
4.Loans made,or offered in writing,before January 1,1998.
LOAN TERMS
A.Except as set forth in subdivision (B),no elected officer of a
state or local government agency shall,from the date of his or her
election to office through the date he or she vacates office,receive
a personal loan of five hundred dollars ($500)or more,except when
the loan is in writing and clearly states the terms of the loan,
including the parties to the loan agreement,date of the loan,amount
of the loan,term of the loan,date or dates when payments shall be
due on the loan and the amount of the payments,and the rate of
interest paid on the loan.
B.This section shall not apply to the following types of loans:
1.Loans made to the campaign committee of the elected officer.
2.Loans made to the elected officer by his or her spouse,
child,parent,grandparent,grandchild,brother,sister,parent-in-
law,brother-in-law,sister-in-law,nephew,niece,aunt,uncle,or
first cousin,or the spouse of any such person,provided that the
person making the loan is not acting as an agent or intermediary for
any person not otherwise exempted under this section.
3.Loans made,or offered in writing,before January 1,1998.
4.Nothing in this section shall exempt any person from any
other provision of Title 9 of the Government Code.
6.13 PERSONAL LOANS
A.Except as set forth in subdivision (B),a personal loan received
by any designated public official shall become a gift to the
designated public official for the purposes of this section in the
following circumstances:
1.If the loan has a defined date or dates for repayment,when
the statute of limitations for filing an action for default has
expired.
2.If the loan has no defined date or dates for repayment,when
one year has elapsed from the later of the following:
a.The date the loan was made.
6-8
b.The date the last payment of one hundred dollars ($100)
or more was made on the loan.
c.The date upon which the debtor has made payments on the
loan aggregating to less than two hundred fifty dollars ($250)during
the previous 12 months.
B.This section shall not apply to the following types of loans:
1.A loan made to the campaign committee of an elected officer
or a candidate for elective office.
2 .
title.
A loan that would otherwise not be a gift as defined in this
3.A loan that would otherwise be a gift as set forth unde~
subdivision (A),but on which the creditor has taken reasonable action
to collect the balance due.
4.A loan that would otherwise be a gift as set forth under
subdivision (A),but on which the creditor,based on reasonable
business considerations,has not undertaken collection action.Except
in a criminal action,a creditor who claims that a loan is not a gift
on the basis of this paragraph has the burden of proving that the
decision for not taking collection action was based on reasonable
business considerations.
5.A loan made to a debtor who has filed for bankruptcy and the
loan is ultimately discharged in bankruptcy.
C.Nothing in this section shall exempt any person from any other
provisions of Title 9 of the Government Code.
6.14 DISQUALIFICATION
No designated employee shall make,participate in making,or in
any way attempt to use his or her official position to influence the
making of any governmental decision which he or she knows or has
reason to know will have a reasonably foreseeable material financial
effect,distinguishable from its effect on the public generally,on
the official or a member of his or her immediate family or on:
(A)Any business entity in which the designated employee has a
direct or indirect investment worth $2,000 or more;
(B)Any real property in which the designated employee has a
direct or indirect interest worth $2,000 or more;
(C)Any source of income,other than gifts and other than loans
by a commercial lending institution in the regular course of
business on terms available to the public without regard to
6-9
official status,aggregating $500 or more in value provided
to,received by or promised to the designated employee
within 12 months prior to the time when the decision is
made;
(D)Any business entity in which the designated employee is a
director,officer,partner,trustee,employee,or holds any
position of management;or
(E)Any donor of,or any intermediary or agent for a donor of,a
gift or gifts aggregating to the maximum amount established
by law,or more,in value provided to,received by,or
promised to the designated employee within 12 months prior
to the time when the decision is made.
6.15 LEGALLY REQUIRED PARTICIPATION
No designated public official shall be prevented from making or
participating in the making of any decision to the extent his or her
participation is legally required for the decision to be made.The
fact that the vote of a designated public official who is on a voting
body is needed to break a tie does not make his or her participation
legally required for purposes of this section.
6.16 DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES
In addition to the general disqualification provisions of Section
6.14,no state administrative official shall make,participate in
making,or use his or her official position to influence any
governmental decision directly relating to any contract where the
state administrative official knows or has reason to know that any
party to the contract is a person with whom the state administrative
official,or any member of his or her immediate family has,within 12
months prior to the time when the official action is to be taken:
(A)Engaged in a business transaction or transactions on terms
not available to members of the public,regarding any
investment or interest in real property;or
(B)Engaged in a business transaction or transactions on terms
not available to members of the public regarding the
rendering of goods or services totaling in value $1000 or
more.
6.17 DISCLOSURE OF DISQUALIFYING INTEREST
When a designated public official determines that he or she
should not make a governmental decision because he or she has a
6-10
disqualifying interest in it,the determination not to act may be
accompanied by disclosure of the disqualifying interest.
6.18 ASSISTANCE OF THE COMMISSION AND COUNSEL
Any designated employee who is unsure of his or her duties under
this code may request assistance from the Fair Political Practices
Commission pursuant to Government Code Section 83114 or from the
attorney for his or her agency,provided that nothing in this section
requires the attorney for the agency to issue any formal or informal
opinion.
6.19 VIOLATIONS
This code has the force and effect of law.Designated employe~
violating any provision of this code are subject to the
administrative,criminal and civil sanctions provided in the Politic~l
Reform Act,Government Code Sections 81000 -91015.In addition,a
decision in relation to which a violation of the disqualification
provisions of this code or of Government Code Section 87100 or 87450
has occurred may be set aside as void pursuant to Government Code
Section 91003.
6.20 PROHIBITED TRANSACTIONS
Members of the Board of Directors and Designated Employees shall
comply with the Prohibited Transactions policy,annexed hereto as
Exhibit A,pursuant to California Government Code Sections 1090,et
seq.
6.21 INCOMPATIBLE ACTIVITIES
Members of the Board of Directors,District officers,and all
other District employees shall comply with the Incompatible Activities
policy,annexed hereto as Exhibit B,pursuant to California Government
Code Sections 1126,et seq.
6-11
APPENDIX
OTAY WATER DISTRICT
CONFLICT OF INTEREST CODE
DESIGNATED POSITIONS
The Treasurer and all District Officials who manage the investment of
public funds are included in and governed by this Conflict of Interest
Code only with respect to its disqualification provisions.For
purposes of disclosure,the Treasurer and all District Officials who
manage the investment of public funds are governed by the statutory
conflict of interest provisions of Article 2 of Chapter 7 of the
Political Reform Act of 1974.(Government Code Sections 87200,et
seq.)
DESIGNATED EMPLOYEES'
TITLE OR FUNCTION DISCLOSURE CATEGORIES ASSIGNED
Members of the Board of Directors
General Manager
Secretary of District
Asst.General Manager,
Finance and Administration
Asst.General Manager,
Engineering and Operations
Chief of Administrative Services
Chief Financial Officer
Chief Information Officer
Chief of Engineering
Chief of Water Operations
Associate Civil Engineer
Communications Officer
Environmental Compliance
Specialist
6-12
1,2,3,4,5,6
1,2,3,4,5,6
1,2,4,5,6
1,2,3,4,5,6,7
1,2,3,4,~7
1,2,3,4,5,6
1,2,5,7
1,-2,---3,-6,-7
1,2,3,4,7
1,2,3,4,7
1,2,3,4,7
1,2,4,5,6
1,2,3,4,7
Engineering Manager/Design,
Construction,and Planning 1,2,3,4,7
Engineering Manager/Water
Resources 1,2,3,4,7
Finance Manager,Controller,
and Budget 2,5,7
Finance Manager,Treasury,
and Accounting 2,5,7
GIS Manager 3,6,7
Human Resources Manager 3,6
IT Operations Manager 3,6,7
Network Engineer 3,6,7
Public Services Manager 1,2,3,4,7
Purchasing and Facilities Manager -±-,-2,6
Senior Buyer 6
Senior Civil Engineer 1,2,3,4,7
System Operations Manager 1,2,3,4,7
Utility Services Manager 1,2,3,4,7
Water Conservation Manager 2,3,4,6
Consultant8 1,2,3,4,5,6
8 Consultants are required to file disclosure statements where they:(a)conduct research and arrive at
conclusions with respect to rendition of information,advice,recommendation or counsel independent of
control and direction of the agency or any agency official other than normal contract monitoring;and (b)
possess no authority with respect to any agency decision beyond the rendition of information,advice,
recommendation or counsel.The determination as to whether a consultant shall be required to file a
disclosure statement shall be made by the General Manager or his or her designee.
6-13
APPENDIX,CONTINUED
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of
investments,business entities,sources of income,or real property
which the designated employee must disclose for each disclosure
category to which he or she is assigned.
Category 1:All investments and business positions in,and sources
of income from,all business entities that do business or own real
property in the District,plan to do business or own real property in
the District within the next year or have done business or owned real
property in the District within the past two years.
Category 2:All interests in real property which are iocated in
whole or in part within,or not more than two (2)miles outside the -
boundaries of the District.
Category 3:All investments and business positions in,and sources
of income from,business entities subject to the regulatory,permit or
licensing authority of the Designated Employee's Department,will be
subject to such authority within the next year or have been subject to
such authority within the past two years.
Category 4:All investments in,and sources of income from,
business entities that are engaged in land development,construction
or the acquisition or sale of real property in the District,plan to
engage in such activities in the District within the next year or have
engaged in such activities in the District within the past two years.
Category 5:All investments and business positions in,and sources
of income from,business entities that are banking,savings and loan
or other financial institutions.
Category 6:All investments and business positions in,and sources
of income from,business entities that provide services,supplies,
materials,machinery or equipment of a type purchased or leased by the
District.
Category 7:All investments and business positions in,and sources
of income from,business entities that provide services,supplies,
materials,machinery or equipment of a type used or administered by
the Designated Employee's Department.
6-14
EXHIBIT A
Prohibited Transactions for Specified Personnel
Members of the Board of Directors ("Members")shall comply with this
Prohibited Transactions policy pursuant to California Government Code
§§1090,et seq.
Members shall not be financially interested in any contract made by
them in their official capacity,or by any body or board of which they
are members.Members shall not be purchasers at any sale or vendors
at any purchase made by them in their official capacity.Members
shall not be deemed to be interested in a contract entered into by a
body or board of which they are members if the Member has only a
remote interest in the contract and if the fact of that interest is -
disclosed to the body or board of which the Member is a member ana---
noted in its official records,and thereafter the body or board
authorizes,approves,or ratifies the contract in good faith by a vote
of its membership sufficient for the purpose without counting the vote
or votes of the Board of Directors member with the remote interest.
"Remote interest"shall be defined as in California Government Code
§1091 (b).
Members shall not be considered to be financially interested in a
contract if their interest is including,but not limited to,any of
the following (Government Code §1091.5):
1.That of an officer in being reimbursed for his/her actual
and necessary expenses incurred in the performance of an official
duty;
2.That of a recipient of public services generally provided by
the public body or board of which he/she is a member,on the same
terms and conditions as if he or she were not a member of the
board;
3.That of a landlord or tenant of the contracting party if
such contracting party is the federal government or any federal
department or agency,this state or an adjoining state,any
department or agency of this state or an adjoining state,any
county or city of this state or an adjoining state,or an public
corporation or special,judicial or other public district of this
state or an adjoining state unless the subject matter of such
contract is the property in which such officer or employee has
such interest as landlord or tenant in which even his/her
interest shall be deemed a remote interest within the meaning of,
and subject to,the provisions of Government Code 1091;
4.That of a spouse of an officer or employee of a public
agency if his/her spouse's employment or office-holding has
6-15
existed for at least one year prior to his/her election or
appointment;
5.That of a non-salaried member of a nonprofit corporation,
provided that such interest is disclosed to the board at the time
of the first consideration of the contract,and provided further
that such interest is noted in its official records;
6.That of a non-compensated officer of a nonprofit,tax-exempt
corporation,which,as one of its primary purposes,supports the
functions of the board or to which the board has legal obligation
to give particular consideration,and provided further that such
interest is noted in its official records;
7.That of compensation for employment with a governmental
agency,other than the governmental agency that empioys the ---
officer or employee,provided that the interest is disclosed to-
the board at the time of consideration of the contract,and
provided further that the interest is noted in its official
records;
8.That of an attorney of the contracting party of that of an
owner,officer,employee or agent of a firm which renders,or has
rendered,service to the contracting party in the capacity of
stockbroker,insurance agent,insurance broker,real estate
agent,or real estate broker if these individuals have not
received and will not receive remuneration,consideration,or a
commission as a result of the contract and if these individuals
have an ownership interest of less than 10 percent in the law
practice or firm,stock brokerage firm,insurance firm or real
estate firm.
In addition,Members shall not be deemed to be interested in a
contract made pursuant to competitive bidding under a procedure
established by law if their sole interest is that of an officer,
director,or employee of a bank or savings and loan association with
which a party to the contract has the relationship of borrower or
depositor,debtor or creditor (Government Code §1091.5).
Authority:
California Government Code §§1090,et seq.
6-16
EXHIBIT B
Incompatible Activities Policy
District officers,members of the Board of Directors,and all other
District employees (collectively,"district personnel")shall comply
with this Incompatible Activities policy pursuant to California
Government Code §§1126,et seq.
District personnel shall not engage in any employment,activity,or
enterprise for compensation which is inconsistent,incompatible,in
conflict with,or inimical to his or her duties as a member of the
Board of Directors,or with the duties,functions,or responsibilities
of his or her appointing power or the agency by which he or she is
employed.
The outside employment,activity,or enterprise of district personnel
is prohibited if it:(1)involves the use for private gain or
advantage of his or her local District time,facilities,equipment and
supplies;or the badge,uniform,prestige,or influence of his or her
local District office or employment or,(2)involves receipt or
acceptance by district personnel of any money or other consideration
from anyone other than the District for the performance of an act
which district personnel,if not performing such act,would be
required or expected to render in the regular course or hours of their
local District employment or as a part of their duties as a local
District officer or employee or,(3)involves the time demands as
would render performance of his or her duties as a local district
personnel member less efficient.
Nothing in this policy shall be interpreted to prohibit any outside
employment,activity,counsel,or enterprise on behalf of another
governmental entity,subject to common law and professional conflict
of interest rules.
Copies of this regulation shall be posted in prominent places at the
District Office.District personnel who violate this regulation may
be subject to discipline as set forth in the applicable Code of
Ordinances and Policies.Board of Directors members who violate this
section may be subject to censure.Disciplinary appeals by district
personnel shall be handled pursuant to applicable Code of Ordinances
and Policies.
Authority:
California Government Code §§1125,et seq.
6-17
AGENDA ITEM 7f
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:September I,2010
SUBMITTED BY:
APPROVED BY:
(Chief)
David Charles~
Public Services ~anager
Rod posada~~~~
Chief,Engineering
PROJECT NO.1
SUBPROJECT:
P1438-
010000
DIV.NO.3
APPROVED BY:
(Ass!.GM):
SUBJECT:
Manny Magan~~~
Assistant General ~nager,Engineering and Operations
Denial of Request by Mr.and Mrs.Mario Luzano to Waive the
Increase in Capacity Fees Quoted on QTE-I0-089
GENERAL MANAGER'S RECOMMENDATION:
Deny request by Mr.and Mrs.Mario Luzano to waive the increase in
Capacity Fees of $3,084 quoted on QTE-I0-089.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization to deny Mr.and Mrs.Mario Luzano's
request for a waiver of the District's capacity fee increase of an
additional $3,084 on quote QTE-I0-089 dated July I,2010,for the
property located at 1123 Sangamon Avenue,Spring Valley,California
91977.
ANALYSIS:
Mr and Mrs.Luzano,who own property at 1123 Sangamon Avenue,Spring
Valley,California,91977 (see Exhibjt A),requested a quote for a
3/4-inch meter Quote QTE-I0-033 was generated April 5,2010 (see
Attachment B)in the amount of $10,195.
Staff received a letter (see Attachment C),dated June 25,2010,from
Mrs.Ferlinda Luzano appealing QTE-I0-033.Due to financial
difficulties they requested that the District discount the quoted
fees.
On July 6,2010,staff responded with a denial letter (see Attachment
D)to Mrs.Luzano and also provided justification of District
capacity fees.Additionally,as of July 1,2010,the Board approved
a new capacity fee increase and a new quote,QTE-10-089,dated
July 1,2010,totaling $13,279 (see Attachment E)was attached to the
letter.
Subsequently,as a result of the July 6,2010 letter,Mr.Luzano
asked the Board at the regular Board meeting held on August 4,2010,
to consider his request to accept quote QTE-10-033.Staff offered
Mr.Luzano a deferral plan per Policy 7 (see Attachment F),however.~
Mr.Luzano indicated that he was not interested at the moment,but
would like the Board to consider his request to pay the quoted fees-
on quote QTE-10-033.
On August 4,2010,Mr.Luzano sent another letter (see Attachment G)
disputing staff's justification for the increase of the District's
capacity fees.They requested that the fee increase reflected in
QTE-10-089 be waived and they be allowed to pay the previous quoted
fees on QTE-10-033.
FISCAL IMPACT:
Waiving these fees will result in a loss of revenue of $3,084.This
waiver would shift the burden of building infrastructure from
developer to rate payers.
STRATEGIC GOAL:
This project supports the District's Mission Statement,liTo 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 District's strategic goal,liTo satisfy current and
future water needs for potable,recycled,and wastewater services ,"
LEGAL IMPACT:
None~
P:\Public-s\STAFF REPORTS\2010\BD 09-01-10,Staff Report,Luzano denial,Ver.2.doc
DC/RP:jf
2
Attachments:Exhibit A
Attachment A
Attachment B
Attachment C
Attachment D
Attachment E
Attachment F
Attachment G
QA/QC Approved:Name'H:A~(G41f1 S-1 L.V~kN
Date:------------
3
SUBJECT/PROJECT:
P1438-010000
ATTACHMENT A
............................................................
Denial of Request by Mr.and Mrs.Mario Luzano to Waive the
Increase in Capacity Fees Quoted on QTE-I0-089
COMMITTEE ACTION:
The Finance,Administration,and Communications Committee reviewed
this item at a meeting held on August 23,2010 and the following
comments were made:
•
•
•
•
Mr.Mario Luzano of Spring Valley was in attendance of the
committee meeting and requested to address the committee regarding
this item.Mr.Lozano indicated that he was requesting that the
board back-date his capacity fee prior to the July 1,2010 fee
increase.He indicated that the fee increased $3,084 on July 1,
2010 and due to financial hardship,he was unable to purchase the
meter prior to July 1,2010.He requested the board's
consideration to back-date the fee prior to the increase on July 1,
2010.
Staff presented that Mr.Luzano had requested a quote for a ~"
meter for his property located at 1143 Sangamon Ave.in Spring
Valley on April 5,2010 and the quote provided at that time was for
$10,195.Following the issuance of the quote,staff received a
letter dated June 25,2010 from Mrs.Ferlinda Luzano appealing the
quote due to financial hardship and requesting that the District
discount the quoted fees.
Staff indicated that as a result of the capacity fee increase
approved by the board effective July 1,2010,staff had generated a
quote on July 6,2010 for $13,279 which was forwarded to Mr.Luzano
along with a letter denying their appeal to discount the capacity
fee.Subsequently,due to the fee increase,Mr.Luzano petitioned
the Board on August 4,2010 to accept the quote dated prior to the
July 1,2010 increase.
Staff had offered Mr.Luzano a deferral plan as per Board of
Directors Policy 7,Conditions for Installment or Deferred Payments
to the District,to make installment payments for the increased
amount to soften the impact of the financial burden.However,Mr.
Luzano,declined at that time and indicated that he was not
interested.Mr.Luzano is requesting that the board accept the
quote dated piror to the July 1,2010 increase.
•
•
•
Staff is recommending that the board deny Mr.Luzano's request and
authorize the General Manager to enter into a deferral agreement in
the amount of $3,084.
It was discussed that this would be a request for a waiver from the
District's Ordinance.It was indicated that there is a requirement
in State statute that the District treat all its ratepayers in a
uniform manner and by granting a waiver it would go against this
requirement.The capacity rate is set to cover the District's cost
to provide service to all District customers and if the District
discounts the capacity fee for one customer,the other customers
would need to bear their share of the discounted fee,which
violates statute as everyone must share equally in the cost
(treated equally).
The committee indicated that they understand and sympathize with
Mr.Luzano's situation,however,the District must abide by its
policies and State statute.If Mr.Luzano decides that he would
like to sign a deferral agreement,he was asked to contact staff.
It was noted that Mr.Luzano should decide prior to October as the
capacity fee is scheduled to be adjusted on October 1,2010 per the
ENR Index (Engineering News Record)and the fee may increase at
that time.
Following the discussion,the committee supported staffs'
recommendation to deny Mr.Luzano's request to back-date his fee
prior to the July 1,2010 fee increase and also supported a deferral
agreement with Mr.Luzano should he wish to sign an agreement with
the District.The committee suggested presentation of this item to
the full board on the consent calendar.
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•i.·•2554SWEETWATER SPRINGSBLVD,SPRINGVAllEY,CA919T8·2096
.TELEPHONE:(619)670·2222 PUBLIC SERVICES
QUOrE
ATTACHMENT B
District Ref #:QTE-10-033
r ------":":":":":=::":":':::::--------------'::"'::"':":~:":'"':":":'::-::--------..ICUSTOMERPROPERTYINFO
OWNER:FERLINDA LUZANO
CONTACT:MARIO LUZANO
ADDRESS:4038 RENE DR
SAN DIEGO,CA 92154
PHONE:(619)690-2946
FAX:
CELL.6ts='?81-0439'
DATE:4/5/2010
PROJECT#:
TRIAD:No
MAP PAGE:303
QTY:1
METER SIZE:.75"
ACCT TYPE/DESC:RIRESIDENTIAL -SINGLE FAMILY
DEVELOPMENT:NORTH DISTRICT
PROJECT:LUZANO RESIDENCE
I SEWER FEE WATER FEE UNIT PRICE EXTENDED I
Sewer Annex Fee =0.0 EDU @$0.00 per EDU:$0.00
Russell Square Service Fee:$0.00
Reimbursements:$0.00
Sub-Total for Sewer:$0.00
IDEPOSITS
Sewer SIR Deposit:$0.00
Water SIR Deposit:$0.00
Inspection Deposit:$0.00
Temporary Meter Deposit N/A.$0.00
Sub-Total for Deposit:$0.00
Maximum flow allowed through a .75"meter is 24 gpm.
I COMMENTS
Installation:$60.00 I $60.00
Meter Fee:$59.00 I $59.00
Capacity Fee:$5,437.00 I $~,437.00
"SDCWA (System)Fee:$4,326.00 I $4,326.00
"SDCWA (Water Treatment)Fee:$166.00 I $-166.00
AMR Fee:$147.00 I $147.00
Meter Box:$0.00 I $0.00
Rancho Jamul Zone 1655 Fee:$0.00 I $0.00
Annexation Fee:$0.00 I $0.00
Water Reimbursement:$0.00 I $0.00
Charges for 1 Meter:$10,195.00 $10,195.00
Credits:$0.00
Sub-Total forWater Meter:$10,195.00
Sub-Total for Sewer:$0.00
Sub-Total for Deposit:$0.00
GRAND TOTAL:$10,195.00
I
ACCT TYPE:R,WATER 10:20,ZIP CODE:91977,PZ:850,AS-BUILT:53-01 (SHT 48)
CUST REQUESTS 1 -3/4"POTABLE METER TO BE LOCATED AT 1123 SANGAMON AVE.,SPRING VALLEY CA 91977.
APN:580-171-52-00.PLEASE SEE ATIACHED MAP.
"CUST MUST PRESENT BUILDING PERMIT AT TIME OF METER PURCHASE"
"THIS QUOTE UPDATES QTE-10-023 DATED 3/1/2010"
REMARKS
THE FEES &CHARGES ARE SUBJECT TO CHANGE.CUSTOMER WILL BE REQUIRED TO CONTACT OTAY WATER
DISTRICT FOR CURRENT FEES AND CHARGES.CALL (619)670-2241.
·SDCWA FEES MAY BE SUBJECT TO CHANGE.
CALL (858)522-6600 FOR INFORMATION ON RATE CHANGE.
Voice:(619)670-2241
Fax:(619\6707 184
VUTRAN
QUOTE PROVIDED BY:
Building permit is required forpotable meterpurchase.
Quote assumes a lateral exists for the property.
~"Ir lateral installation deposits,the customer shall deposit the estimated costs with the District prior to commencement ofwork.If actual
3tS incurred are less than the amount deposited,the District shall refund the balance ofthe deposit to the customer.Ifactual costs
Incurred exceed the amount deposited,the stomer shall reimburse the District for the additional costs.
June 25,2010
To Whom It May Concern:
ATTACHMENT C
OTAY WATER DISTRICT
C)1:-f",e.•!V ~:-0! '. ,~.......
7C\,\JUN 29..PU 12:01
I have received a quote (QTE-10-033)for a potable water meter for over $10,000
and I am writing this letter to appeal the stated quote.
We bought our land back in 2002 and I remember that the meter fee was about
$3000-$4000 back then.We started building our dream house in 2007 and to
my surprise the amount went up by $6000-$7000 this year.I don't understand
why the amount went up since the pro·perty value of homes severely declined.
It has been 3 years and the house is only 50%compieted,due to financial
difficulties.It will be greatly appreciated if a discount can be applied to the meter
fee.I can then utilize the discounted amount towards to completing some of the
constructions.
Thank you for your time and consideration.
ATTACHMENT D
July 6,2010
Ferlinda Luzano
4038 Rene Drive
San Diego,CA 92154
...cOedwated to CO~\l~l'llll\it~gelluiee
2554 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY,CALIFORNIA91978-2004
TELEPHONE:670-2222,AREA CODE 619 www.otaywater.gov
Project No.:P1438-010000
Subject:Potable Water Meter Quote QTE-10-033
1123 Sangamon Avenue,Spring Valley;
APN 580-171-52-00
Dear Ms.Luzano:
Otay Water District (District)is in receipt of your letter dated June 25,2010 regarding the potable
water meter quote (QTE-1 0-033)dated April 5,2010 for $10,195.In the letter you request that the
meter fees be lowered.
Over the past few years,water supply limitations have imposed increased pressure on the District to
develop local and independent water supplies from the traditional Northern California and Colorado
River imported water supplies.The District has developed water supply strategies and initiatives to
address these limitations which translate into new capital improvement program projects to increase
water supply reliability within the District's jurisdiction.These new water supply opportunities require
significant capital costs to bring the projects to reality.The District typically revises the water meter
capacity fees about every five years and thus,these water supply endeavors,along with increased
costs for other capital improvements,are the primary drivers in developing capacity fee levels.
In addition,the San Diego County Water Authority (CWA)fees that are collected by the District are
established by CWA and therefore the District has no authority to reduce or waive them.You may
contact CWA with your request at 858-522-6600.
Also,we have enclosed a revised quote (QTE-10-089)dated July 2,2010 in the amount of $13,279,
as the District has imposed new fees effective July 1,2010.
We sympathize with your financial situation;however,the District is not able to grant your request for
a discount on the meter fees.If you have any questions,please do not hesitate to contact me at
619-670-2243.
Sincerely,
OTAY WATER DISTRICT
1k~{srt!Jo-l~-
Da'.Cbarles
Public Services Manager
DTC:mlc
Enclosure:QTE-1O~089
cc:Mark Watton
Manny Magana
Rod Posada
P:\Public-s\Letters\2010\1123 Sangamon Avenue,Spring Valley,7-1-10 (2)
·..Dedicated to Community
2554SWEETWATER SPRINGS BLVD,SPRING VALLEY,CA 9197a-.2096
TELEPHONE:(G19)670-2222
PUBLIC SERVICES
QUOTE
ATTACHMENT E
District Ref #:QTE-10-089
CUSTOMER PROPERTY INFO I
PROJECT#:
TRIAD:No
MAP PAGE:303
QTY:1
METER SIZE:.75"
ACCT TYPE/DESC:R/RESIDENTIAL -SINGLE FAMILY
DEVELOPMENT:NORTH DISTRICT
PROJECT:LUZANO RESIDENCE -1123 SANGAMON
AVF
OWNER:FERLINDA LUZANO
CONTACT:MARIO LUZANO
ADDRESS:4038 RENE DR
SAN DIEGO,CA 92154
PHONE:(619)690-2946
FM'~qCELL~619.,:;'-8'1~?fiC1...((7 -=t I"
DATE:7/1/2010
I SEWERFEE'WATER FEE UNIT PRICE EXTENDED I
Maximum flow allowed through a 75"meter is 24jPtY\
Sewer SIR Deposit:$0.00
Water SIR Deposit:$0.00
Inspection Deposit:$0.00
Temporary Meter Deposit N/A:$0.00
Sub-Total for Deposit:$0.00
Sewer Annex Fee =0.0 EDU@ $0.00 per EDU:$0.00
Russell Square Service Fee:$0.00
Reimbursements:$0.00
Sub-Total for Sewer:$0.00
I
Installation:$60.00 I $60.00
Meter Fee:$59.00 I $----::59.00
Capacity Fee:$7,641.001 $7,641.00
Water Supply Fee:$880.00 I $~80.00
"SDCWA (System)Fee:$4,326.00 I $4,326.00
~-,,-..----.......-------------------i"SDCWA (Water Treatment)Fee:$166.00 I $166.00
IDE;PQS(rS AMR Fee:$147.00 I $147.00
Meter Box:$0.00 I $0.00
Annexation Fee:$0.00 I $0.00
Water Reimbursement:$0.00 I $0.00
Charges for 1 Meter:$13,279.00 $13,279.00
Credits:$0.00
Sub-Total for Water Meter:$13,279.00
Sub-Total for Sewer:$0.00
Sub-Total for Deposit:$0.00
GRAND TOTAL:$13,279.00
ACCT TYPE:R,WATER 10:20,ZIP CODE:91977,PZ:850,AS-BUILT:53-01 (SHT 48)
CUST REQUESTS 1 -3/4"POTABLE METER TO BE LOCATED AT 1123 SANGAMON AVE.,SPRING VALLEY CA 91977.
APN:580-171-52-00.PLEASE SEE ATIACHED MAP
CUST MUST PRESENT BUILDING PERMIT AT TIME OF METER PURCHASE
"THIS QUOTE UPDATES QTE-10-033 DATED 4/5/2010 TO REFLECT CURRENT RATES"
REMARKS '·--;<.0_.
THE FEES &CHARGES ARE SUBJECT TO CHANGE.CUSTOMER WILL BE REQUIRED TO CONTACT OTAY WATER
DISTRICT FOR CURRENT FEES AND CHARGES.CALL (619)670-2241
·SDCWA FEES MAY BE SUBJECT TO CHANGE.
CALL (858)522-6600 FOR INFORMATION ON RATE CHANGE.
Building permit is required forpotable meterpurchase.
Quote assumes a lateral exists for the property.
For lateral installation deposits,the customer shall deposit the estimated costs with the District prior to commencement ofwork.If actual
costs incurred are less than the amount deposited,the District shall refund the balance ofthe deposit to the customer.Ifactual costs
Incuned exceed the amount deposited.!~bU"e the Dls!dc!for the additional costs.IVOl;;;;,(619)670.2'..41-".!t
. l a.Fax:1619\670-6184 \QUOTE PROVIDED BY:~------~~~~~_::::~~~~
TANYA ROMERO t::~::1-.,Jt
ATTACHMENT F
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
SUbject Policy Date Date
Number Adopted Revised
CONDITIONS FOR INSTALLMENT OR DEFERRED 07 10/15/84 5/7/2008
PAYMENTS TO THE DISTRICT
PURPOSE
To establish a policy regarding conditions for making installment
or deferred payments to the District.
BACKGROUND
Occasionally the District receives requests to allow payment of
certain connection charges ort an installment or deferred basis.-
Approval of these agreements will occur in very limited
circumstances where it is in the District's best interest that the
agreement be made.In addition,if the District is to consider
such requests,the District must not be in a position of risk of
loss in the event of non-payment.
POLICY
The following procedures,terms and conditions shall apply to
requests and arrangements for payment to the District on an
installment or deferred basis:
1.Requests for installment or deferred payments shall be
reviewed by the District.Each request shall indicate the
terms desired with a maximum term of 12 months.The person
or party making the request shall furnish all financial
information or data deemed necessary by the District to
review the request.
2.The General Manager shall have authority to negotiate and
execute deferral agreements with residential customers where
the value of the agreement does not exceed the General
Manager's signatory authority as established in Chapter 2,
Section 2.01-D of the Code of Ordinance.Deferral agreements
requested by non-residential customers shall be presented to
the Board prior to execution.
3.Where the value of the proposed agreement exceeds the General
Manager's authority,the District shall make a recommendation
to the Board of Directors for approval or disapproval,with
reasons for the recommendation.
4.In emergency situations,the General Manager is authorized to
enter into a deferral agreement exceeding his/her authority
to allow a customer to connect to the District system.The
General Manager shall submit all such deferral agreements to
the Board for ratification at the next regularly scheduled
Board meeting.
Page 1 of 2
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
..
SUbject Policy Date Date
Number Adopted Revised -
CONDITIONS FOR INSTALLMENT OR DEFERRED 07 10/15/84 5/7/2008
PAYMENTS TO THE DISTRICT
5.A minimum down payment of ten percent (10%)of the total
amount to be paid in installments or on a deferred basis is
required and is nonrefundable.
6.Any increases in rates,fees,or charges shall apply to all
connections which have not been made at the time the increase
is adopted,including but not limited to capacity fees and
annexation fees.
7.The only fees that will be considered for deferral are Otay·
Capacity Fees and Annexations fees.All labor and materials
costs will not be considered for deferral as this would place
the District in a position of risk in the event of default.
In addition,the District will not make arrangements for
deferral of fees collected by the District on behalf of other
governmental entities.These fees must be paid prior to the
execution of the agreement or payment arrangements must be
obtained from the CWA or MWD by the applicant.
8.For each installment or deferred payment arrangement a
promissory note,payable to the District,shall be executed
to provide for terms of payment of the balance of principal
due,with interest payable monthly at a rate equal to five
percent (5%)per annum over the Federal Reserve Discount
Rate.
9.In addition to execution of a promissory note for the balance
of the payment,the District will consider requiring security
to guarantee payment of the promissory note,such as but not
limited to,a letter of credit,performance bond,lien
contract,certificate of deposit,or other security
satisfactory to the District.
10.An administrative fee for the establishment of a deferral
agreement of $500.00 will be charged for all such agreements.
Page 2 of 2
ATTACHMENT G
Mr and Mrs Mario Luzano
08-04-2010
To whom it may concern,
4038 Rene Drive San Diego,Ca 92154
(619)399-67779
We are writing with regard to an amount quoted by Otay Water District office for a potable water meter (QTE-
10-089),and more specifically,the issue of that amount being significantly increased,without warning,from the
figure which was previously quoted.
We purchased our would-be dream home in 2002,when the fee for the water meter was in the range of $2-3K.
Even as recently as March and April of this year and figuring in the expected increases,the quoted amount around
$10,000.This preceding consistency only amplified our shock and disbelief upon receiving the most recentql!9te
(July 2010),which presented us with a figure almost quadruple that of the preliminary fee..
'Capacityfees are to be paid by new customers who will be imposing a demand on the District water system.The capacityJe~s
requires new users to payfor their share ifthe cost to construct thefacilities requiredfor provision ifthe water service ...'
(Mr.Charles Davis-Water District Public Service Manager,in an email response to our initial query)
While we fully understand capacity fees,and appreciate the District's need to fund the 'expansion portion of new
water supply projects,'the basis for my argument here is two-fold:
1)Our home which is still currently under construction,is located in an already fully developed
neighbourhood where a water line has been in place and operational since the 80s.
.'...In the case ifthe July 1,2010 increase the District modified the capacityfees to show a new combined methodol08.Y if
charging capacityfees riflecting the value ifthe District current andfuture assets and created a New SupplyJee to fund the
; ,.,l expansion portion ifnew water supply projects.'(Davis,C.)
1)We received no prior notice whatsoever of these drastic price increases,and I think that I should have been
informed as a courtesy and therefore I consider it unfair,unprofessional and unlawful to expect us to pay the
amount without contesting it.
As previously stated,the house is as yet unfinished due to financial hurdles and remains unoccupied,meaning that
currently,we are imposing no additional demand on the water system and supply.This is an important factor
contributing to our current discontent,but one which takes a firm second place to what I deem to be a shocking
and unlawful failure to notify us in advance about these 'modified'fees.
In light ofthis,we would ask that you might waive these most recent fees and allow us to retain the charge for the
previous,steadfast amount as was quoted in April.
I thank you for your time,and look forward to hearing from you soon regarding a resolution to this enquiry.
Sincerely,