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HomeMy WebLinkAbout03-04-09 Board PacketOTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY,CALIFORNIA WEDNESDAY March 4,2009 3:30 P.M. AGENDA 1.ROLL CALL 2.PLEDGE OF ALLEGIANCE 3.APPROVAL OF AGENDA 4.APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 13,2009 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 BY SAN DIEGO COUNTY WATER AUTHORITY (CWA)OF THE WATER SUPPLY OUTLOOK AND ITS IMPACT ON RATES (FRANK BELOCK, CWA DEPUTY GENERAL MANAGER) 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)APPROVE A ONE-YEAR CONTRACT WITH DIEHL,EVANS &COMPANY, LLP TO SERVE AS THE DISTRICTS AUDITORS FOR THE FISCAL YEAR ENDING JUNE 30,2009 WITH AN OPTION FOR FOUR ADDITIONAL 1- YEAR CONTRACTS SUBJECT TO THE BOARD'S REVIEW AND AP- PROVAL b)APPROVE CHANGE ORDER NO.1 TO THE CONTRACT WITH SPIESS CONSTRUCTION FOR THE CONSTRUCTION OF THE 850-4 RESERVOIR PROJECT FOR A DEDUCTIVE AMOUNT NOT TO EXCEED <$250,778.45> 1 c)APPROVE A MEMORANDUM OF UNDERSTANDING WITH THE SWEET- WATER AUTHORITY,SOUTH BAY EXPRESSWAY,L.P.,A CALIFORNIA LIMITED PARTNERSHIP,AND THE CALIFORNIA DEPARTMENT OF TRANSPORTATION CONCERNING THE PROCESSING OF THE SERVICE AREA BOUNDARY ADJUSTMENT BETWEEN THE DISTRICT AND SWEETWATER AUTHORITY d)AUTHORIZE THE CREATION OF A NEW CIP PROJECT FOR THE RUX- TON AVENUE UTILITY RELOCATIONS IN THE AMOUNT OF $100,000 AND TO REIMBURSE TC CONSTRUCTION IN AN AMOUNT NOT TO EX- CEED $25,000 FOR PIPELINE REPAIRS ON THE PROJECT ACTION ITEMS 8.ADMINISTRATIVE SERVICES,FINANCE AND INFORMATION TECHNOLOGY a)RECEIVE DIRECTION FROM THE BOARD ON THE ONGOING FUNDING OF THE ANNUAL REQUIRED CONTRIBUTION TO CALPERS AND MEDI- CAL EXPENSE REIMBURSEMENT REQUESTS FROM CALPERS (BEACHEM) 9.ENGINEERING AND WATER OPERATIONS a)APPROVE AN AGREEMENT BETWEEN SWEETWATER AUTHORITY AND OTAY WATER DISTRICT FOR JOINT PARTICIPATION IN THE OTAY RIVER GROUNDWATER DESALINATION FACILITY PROJECT (PEASLEY) 10.BOARD a)DISCUSSION OF 2009 BOARD MEETING CALENDAR INFORMATIONAL ITEMS 11.THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY.NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM. a)REPORT ON DIRECTORS EXPENSES FOR THE 2ND QUARTER OF FISCAL YEAR 2009 (PRENDERGAST) b)FISCAL YEAR 2009 2ND QUARTER CIP UPDATE REPORT (RIPPERGER) REPORTS 12.GENERAL MANAGER'S REPORT a)SAN DIEGO COUNTY WATER AUTHORITY UPDATE 2 ! 1 13.DIRECTORS'REPORTS/REQUESTS 14.PRESIDENTS REPORT RECESS TO CLOSED SESSION 15.CLOSED SESSION ·a)CONFERENCE WITH LEGAL COUNSEL -PENDING LITIGATION [GOV- ERNMENT CODE §54956.9(a)] (I)MULTIPLE CASES RELATED TO THE FENTON BUSINESS CEN- TER AND FILED WITH THE SUPERIOR COURT OF THE COUNTY OF SAN DIEGO CONSOLIDATED UNDER CASE NO.37-2007- 00077024-CU-BC-SC Ii I b)CONFERENCE WITH REAL PROPERTY NEGOTIATORS [GOVERNMENT CODE §54956.9] PROPERTY:2500 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY,CA 91978 (APN NO.505-230-52-00) AGENCY NEGOTIATORS:MARK WATTON AND STEVE DOBRAWA NEGOTIATING PARTIES:RANCHO SAN DIEGO INDUSTRIAL CENTER, LLC,MIKE COLARUSSO UNDER NEGOTIATIONS:PRICE AND TERMS OF PURCHASE RETURN TO OPEN SESSION 16.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION 17.ADJOURNMENT 3 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 February 27,2009,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 February 27,2009. 4 ~! I t, i I AGENDA ITEM 4 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT November 13,2008 1.The meeting was called to order by Vice President Lopez at 3:35 p.m. 2.PLEDGE OF ALLEGIANCE 3.ROLL CALL Directors Present:Bonilla,Breitfelder,Croucher,Lopez and Robak Directors Absent:None Staff Present:General Manager Mark Watton,Ass!.GM Administration and Finance German Alvarez,Ass!.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 lis!. 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,Croucher,Breitfelder,Lopez and Robak None None None to approve the agenda. 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 No one wished to be heard. 6.APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF JUNE 10 AND AUGUST 6,2008 A motion was made by Director Breitfelder,seconded by Director Lopez and carried with the following vote: Ayes:Directors Bonilla,Croucher,Breitfelder,Lopez and Robak 1 Noes:None Abstain:None Absent:None to approve the minutes of the regular board meeting of June 10 and August 6, 2008. CONSENT CALENDAR 7.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Breitfelder,seconded by Director Robak and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Croucher,Breitfelder,Lopez and Robak None None None to approve the following consent calendar items: a)APPROVE AMENDMENTS TO TWO (2)SEPARATE UTILITY AGREEMENTS (NOs.31759 AND 31921)WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION b)APPROVE CHANGE ORDER NO.1 TO THE EXISTING CONTRACT WITH ARB,INC.FOR THE CONSTRUCTION OF THE 20-INCH LANE AVENUE CONVERSION PROJECT IN AN AMOUNT NOT-TO-EXCEED $78,938 c)APPROVE AN INCREASE TO THE FISCAL YEAR 2009 BUDGET OF $80,000 FOR THE RALPH W.CHAPMAN WASTEWATER RECYCLING FACILITY -REVERSE OSMOSIS BUILDING AND METER SHOP REMODEL PROJECT REVISING THE PROJECT BUDGET FROM $495,000 TO $575,000 d)ADOPT RESOLUTION NO.4131 OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT APPROVING THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO.18 OF THOSE LANDS DESCRIBED AS "ROBINSON SEWER ANNEXATION"[FILE NO. 0210-20.306] e)APPROVE AND RATIFY THE DISTRICTS PARTICIPATION IN THE STATE OF CALIFORNIA PURCHASE CARD PROGRAM MASTER SERVICE AGREEMENT (MSA);RATIFY THE GENERAL MANAGER'S APPROVAL OF ADDENDUM TWO (2)TO MSA 5-06-99-01 ADDING THE OTAY WATER DISTRICT AS A PARTICIPATING AGENCY;AND, 2 ACTION ITEMS f) AUTHORIZE THE GENERAL MANAGER TO EXECUTE FUTURE AGREEMENTS AND OTHER REQUIRED DOCUMENTATION, INCLUDING ADDENDUMS TO MSA 5-06-99-01 ,AS REQUIRED TO CONTINUE THE DISTRICTS PARTICIPATION IN THE STATE OF CALIFORNIA PURCHASE CARD PROGRAM AUTHORIZE NEGOTIATIONS WITH RANCHO SAN DIEGO INDUSTRIAL CENTER,LLC FOR THE PURCHASE OF VACANT LAND IDENTIFIED AS APN NO.505-230-52-00 AND APPROVE AN AMENDMENT TO THE FISCAL YEAR 2009 CIP BUDGET TO ADD $600,000 TO FUND CIP P2479,OPERATIONS YARD PROPERTY ACQUISITION,TO PROVIDE FUNDING FOR THE PURCHASE AND IMPROVEMENT OF THE SUBJECT PROPERTY i. I 8.ENGINEERING AND WATER OPERATIONS a)APPROVE THE WATER SUPPLY ASSESSMENT REPORT DATED OCTOBER 2008 FOR THE PARAGON MANAGEMENT COMPANY OTAY BUSINESS PARK DEVELOPMENT PROPOSAL AS REQUIRED BY SENATE BILL 610 Chief of Engineering Rod Posada indicated that Senate Bills 610 and 221 became effective in January 2000 to improve the link between water supply and land use decisions.A Water Supply Assessment Report (WSA)was prepared in compliance with SB 610 for the Otay Business Park Project.The report will be included with the CEQA documentation.He noted that SB 221 does not apply to the Otay Business Park Project as it is an industrial project.He presented a slide showing the location of the project in Otay Mesa (see attached copy of presentation);southwest of State Route 11 near the future third border crossing with Mexico. He indicated that the project was included in the East Otay Mesa Specific Plan Area and is within Otay,San Diego County Water Authority (CWA),and Metropolitan Water District (MWD),thus annexation is required.The project consists of approximately 162 acres with 59 industrial lots and the projected demand is 162 AF per year of potable water and 20 AF per year of recycled water.The Otay Business Park Project is expected to be completed in approximately five years. The WSA indicates that the regional and local water supply agencies fully intend to develop sufficient reliable supplies to meet the demands of the project.The water suppliers recognize that additional water supplies are necessary and supply portfolios need to be reassessed.He indicated that MWD is in the process of updating its Integrated Water Resources Plan (IRP). 3 He shared that the state of the current water supply situation is documented in the project's WSA and staff believes that the Board has met the intent of SB 610 statue in that: •Land use agencies and water suppliers have demonstrated a strong linkage;and •The Otay Business Park WSA clearly documents the current water supply situation. He stated that the WSA Report demonstrates and documents that sufficient water supplies are planned for and are intended to be acquired to meet the demands of the project.It also documents the actions necessary to develop these water supplies.He noted that water supply for the Otay Business Park Project and existing and future developments are within the District's 20-year planning horizon and water supplies are planned for and are intended to be made available in normal and in single/multiple dry years. Chief of Engineering Posada indicated that the following CWA CIP projects will assist with the supplies for the project: •Emergency Storage Project •100 MGD Twin Oaks WTP •San Vicente Reservoir Expansion Carryover Storage Project •Pipeline No.6 •All American Canal Lining Project •Coachella Canal Lining Project •liD QSA Water Transfers (Fallow Farmland) Chief of Engineering Posada indicated that CWA's preferential rights with MWD is about 16.5%of its water sales.However,it currently purchases approximately 25%of MWD's water sales.CWA and all member agencies are working to reduce dependence on MWD by finding new water supplies.MWD's Regional Urban Water Management Plan indicates that through effective management of its water supply,they fully expect to be 100%reliable in meeting all non- discounted,non-interruptible demands throughout the next twenty-five years. He stated that CWA has also developed a Drought Water Supply Allocation Plan which allows for new demands for growth when land uses are within current water supply planning documents such as the Otay Business Park Project. Under CWA's Drought Water Supply Allocation Plan,Otay WD water supply allocation will increase as a result of this project/growth. He also noted that the District has a Drought Response Conservation Plan. Currently,a Level I drought watch (voluntary conservation with a target of up to 10%water savings)has been declared by the District.He stated that if the District declared a Drought Level III Critical alert,it would require mandatory conservation with a target of up to 40%water savings and no new potable water meters except under limited conditions will be installed.He indicated that the 4 ,~ I K developer has been advised that the District will not set new meters if a Level III Drought alert was declared.General Manager Watton clarified that the Board may approve the WSA today,however,if a Level III Drought alert was declared, the developer would not be able to purchase new meters for the development from the District.Chief of Engineering Posada indicated that staff is recommending that the Board approve the SB 610 WSA Report for the Otay Business Park Project. Director Robak inquired if the WSA Report is normally produced by District staff. Chief of Engineering Posada indicated that staff does develop the report along with a consultant hired by the developer.He also inquired if offset issues are addressed in the WSA.Chief of Engineering Posada indicated that offsets are not necessary for this project as it was included in Otay WD,CWA and MWD's planning documents.As the project was in the planning documents,the District will receive a higher allocation from CWA when the project starts to take water. President Croucher indicated that the Engineering,Operations and Water Resources Committee reviewed this item at length and also discussed any liability the District might incur should the District not approve the WSA.He stated that the committee concurred with staffs'recommendation. Director Breitfelder commended staff for their work on the WSA.He indicated that in his view Sycuan was a groundbreaking precedent and was not a unique situation and he is not inclined to vote for any WSA which does not include 100% offset.He stated that he may make an exception to this WSA,if there was consensus from the board to move forward and formulate a policy toward that end in the near future. Directors Bonilla indicated that he was comfortable with this action and had no objections.President Croucher indicated that the District has situations in its policy that would recommend that WSAs not be approved.However,the District, at this point,has not declared a Level III Critical Alert.He stated that a Drought Level I watch has been declared and it is within the District's policy to move forward with the approval of the WSA at this level and if the District did not approve of the WSA at this point, then the District's policy is incorrect.He stated with the policy in place,the District should move forward as the District has planned for the development.He indicated that the committee fully supported the approval of the WSA. Director Robak inquired if there are other Districts within the county that are approving large scale projects during the declared Level I Drought alert.General Manager Watton indicated that only Otay WD,Cities of San Diego,Carlsbad and Oceanside have this level of development.He indicated that the City of Carlsbad is approving WSAs,however,the City of San Diego is requiring water needs for developments that are not within the City's plan be offset.If they are within the plan,they are approving the WSAs.He also noted that Olivenhain MWD and the City of Del Mar intend to not sell meters at Drought Level II,but the majority of the agencies will not enforce this until a Drought Level III is declared. 5 Director Breitfelder indicated that ifthere was a call for a policy for 100%offset, he felt that it would be more sensible,well short of a moratorium,as it is more constructive,creative and economical.He encouraged the board to reconsider. 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 Director Breitfelder None None to approve staffs'recommendation. 9.ADMINISTRATIVE SERVICES,FINANCE AND INFORMATION TECHNOLOGY a)ACCEPT THE DISTRICTS AUDITED FINANCIAL STATEMENTS, INCLUDING THE INDEPENDENT AUDITORS'UNQUALIFIED OPINION, FOR THE FISCAL YEAR ENDING JUNE 30,2008 Accounting Manager Jim Cudlip noted that this is the fifth year that Teaman and Ramirez and Smith,Inc.(TRS)have handled the District's audit.He wished to recognize that it is in the first year that TRS worked with the District,that the District completed is first Comprehensive Audited Financial Report (CAFR).He stated that over the five years,the District feels that its CAFR and financial reports have improved greatly and staff wished to recognize TRS for their assistance in developing the financial reports.He stated that the District has made a commitment to bid for new audit services after the five-year period and he wished to note that TRS has done an excellent job in bringing the District's financial reporting to the high level that they are now. Mr.Rich Teaman of TRS indicated that it was a pleasure to work with the District and commended the District's Finance Department for their professionalism and good work.He stated that there are many different audits and the purpose of this audit is to audit the District's financial statement.The audit firm issues an opinion about whether the numbers in the financial statements are accurate,if the proper accounting principles were applied to the numbers and that they are recorded in a fashion that allows them to be comparable to other jurisdictions. He indicated that he is happy to report that their firm has a clean,unqualified opinion,which is the highest level that can be issued.He indicated that the board might notice that the CAFR format did not change much from last year and the only real change revolves around the Other Post Employment Benefits (OPEB)reporting as per accounting standard GASB 45.He indicated that it was applied this year and there are a couple of line items in a footnote in this year's CAFR that was significantly modified.Other than this change,the rest of the financial statement is very similar to prior years.He indicated that he met with the District's Finance,Administration and Communications Committee and reviewed the financial report,along with other reports associated with the audit, in detail. 6 He stated that he wished to highlight on the statement of net assets,a line item that indicates the District has prepaid its OPEB obligation.He indicated that the District is one of a very few agencies that has been able to do this and it is forward thinking on the part of the District to fund this over the years.He stated that most of his clients are not in this position and have a large deficit to make up.He also indicated that in the net assets section there is a line item for restricted assets.An explanation was added to clarify that the asset is restricted for "construction." Mr.Teaman stated that in addition to the financial statements,there are other reports.Typically there is an Internal Control and Financial Compliance Report (CFCR)and in years when there is not a Single Audit Report,the CFCR was a separate document.As the District has a Single Audit Report,the CFCR document has been included with all the other Single Audit Reports.He stated a Single Audit is required when the District has received $500,000 or more of federal grant monies.As this is true for the District this year,there are additional control items that they must test.He indicated that this is the second year that a Single Audit Report was required and they had no findings or exceptions to report.This is also the second year in which they have issued an agreed upon procedures report relating to the District's investments.He indicated that this is required under the District's Investment Policy.The audit tested the District's investments and investment activity in relation to its Investment Policy,and the audit found no findings. The Statement in Auditing Standards 114 (SAS 114)updates SAS 61 which requires that the audit firm report to an audit committee if there is an audit committee.Under SAS 114,if an audit committee does not exist,then the audit firm reports to the board.It describes the conduct of the audit (how the process went);any problems encountered,any disagreements with management,reviews the types of journal entries,etc.He stated that he wished to note on page two of this report (Finance Committee Report)there are a couple items noted: •Identified a new accounting principle GASB 45 which was applied relating to the OPEB reporting requirement. •Significant estimates relating to investment evaluation and depreciation. He stated that there were no disagreements with management or major concerns to report. Mr.Teaman indicated that there was nothing to report in the "Management Letter."He stated that this does not mean that there was no dialog on accounting treatments on various items.There were many discussions throughout the course of the engagement,but all discussions were resolved in a fashion where all parties were in agreement.He stated that overall the audit went very smoothly.Suggestions were acted upon right away and he was very pleased with the process. 7 Director Robak indicated that the District's Finance,Administration and Communications Committee was very happy with the auditing firm's work and was pleased with the outcome of discussions.He stated that the questions raised were productive and were addressed in a timely matter.He thanked staff for their work on the audit. General Manager Watton thanked Mr.Teaman for his work on the audit and noted that the District has learned much during his engagement.He stated that the District has improved its process and that Mr.Teaman was very instrumental in the District's success in receiving awards for its CAFR and financial reports. Director Bonilla inquired if this was the second year that a single audit was performed.Mr.Teaman indicated that that was correct.Director Bonilla inquired if a schedule was determined for the next year.Chief Financial Officer Beachem indicated that the District would be bidding next year for a new audit firm.It is expected that the District will have a single audit performed next year as well as it is believed that the District will receive over $1 million next year in federal grants. A motion was made by Director Robak,seconded by Director Breitfelder and carried with the following vote: I, I Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Lopez and Robak None None None to accept the Audited Financial Statements for the Fiscal Year ended June 30, 2008. b)PROHIBIT THE PURCHASE OF BOTTLED WATER WITH DISTRICT RESOURCES Director Robak indicated that the reason he has brought this issue forward is,as many are aware,there is a push around the country to move away from bottled water.He indicated that he agrees with the philosophy,but most importantly Otay is a municipal water district and its business is to provide tap water services.He stated that a gentleman spoke at the District's Finance, Administration and Communications Committee and had noted that at an annual conference for mayors in Miami in June 2008,250 mayors nationwide adopted a resolution which would prohibit the purchase of bottled water at their prospective cities/agencies except for emergency uses.He indicated that he felt the District should follow suit with an exemption for bottled water purchases for emergency use. Director Breitfelder indicated that this item did not make it out of committee and it was discussed if the president of the board chose to agendize the item for the full board's discussion,it would be his prerogative.He indicated that it is his perspective that the board trusts staff on much larger issues than the appropriateness of buying bottled water from time to time.He indicated that this 8 was more of a political correct issue and did not feel it should rise to the board level. It was noted that CWA had decided not to purchase bottled water and,last year, the City of San Diego also decided not to purchase bottled water.Bottled water, however,is purchased for trips and other such occasions. Director Bonilla indicated that he did not feel that it was proper for the board to make such a decision for staff at this point and time.He indicated that if the action was taken,for convenience,staff would begin to bring their own bottled water to meetings.He indicated that he felt this was more of a "feel good" political decision and did not feel that we were "there yet"to eliminate bottled water.He indicated that maybe in a year's time,the General Manager can poll the employees to see their thoughts at that time. President Croucher indicated that he also felt that this was not an action that should be taken at the board level at this point,however,he felt it should be brought to the board for discussion as a request was made by a member of the board. Director Robak made a motion to prohibit the purchase of bottled water with District monies except for emergency use.The motion died as it failed to receive a second. 10.BOARD a)DISCUSSION OF 2008 AND 2009 BOARD MEETING CALENDARS It was discussed that the December 2008 Regular Board Meeting has been scheduled on December 15,2008 and all members of the board were available to attend. 11.INFORMATIONAL ITEMS a)INFORMATIONAL REPORT ON THE REQUEST FROM SYCUAN BAND OF THE KUMEYAAY NATION FOR ANNEXATION TO THE OTAY WATER DISTRICT,SAN DIEGO COUNTY WATER AUTHORITY, METROPOLITAN WATER DISTRICT,AND LOCAL AGENCY FORMATION COMMISSION FOR WATER (SPECIFIED PARCELS ONLY)AND SEWER (CHARLES) President Croucher indicated that this item is presented to the board as an informational item only and information is provided in staffs'report. REPORTS 12.GENERAL MANAGER'S REPORT 9 General Manager Watton indicated that the 36-inch Potable Pipeline design is scheduled to be completed on December 2008 and the project will be advertised for bid when the design is completed.The contract award is expected to be presented in March 2009.He indicated that the District has lost approximately six months from the original plan,but it is felt that the District can make time up during the bid and construction phase.He stated that Lee and Ro are fully engaged and have done a good job in moving the project forward. He indicated that the District participated in the Statewide Emergency Preparedness Golden Guardian exercise today.He stated that two issues came out of the exercise,having better coordination with the City of Chula Vista and San Miguel Fire Protection District on critical fire areas (areas they wished to protect first)to assure that the water is available for these areas.He introduced Mr.Ted Cudal who is the District's new Safety Manager.He indicated that Mr. Cudal has a lot of experience in safety and security and is doing a good job. He shared that the District is receiving good attendance for its rotating sprinkler nozzle class.Over 55 persons attended which indicates that the advertising to conserve water is getting noticed by the public. General Manager Watton indicated that the School Education Program was contracted out to the Water Conservation Garden Authority.The Garden has provided tours to a total of 174 students and 22 adults,thus far,and 17 tours have been scheduled through the end of the school year.The program is going well and the District is pleased with how things are working with the program. He indicated that the District has received the Municipal Information Systems Association of California award for the second year in a row for Excellence in IT Practices.He stated that it is a pleasure to receive such recognition. He stated that Chief of Information Technology Geoff Stevens and Accounting Manager Rita Bell provided a presentation at the AWWA Conference regarding the District's Information Systems (financial reporting,project job costing,etc.). He stated that the City of San Diego preceded the Districts presentation and it gave him a new appreciation for the District's system.He stated staff presented the District's system which provides real time numbers and readily available reports.He stated that the presentation and the District's system were very well received. He noted that the financial reporting information in his report.He stated that these are difficult times,however,the District's portfolio is secure and in good shape.He stated that the financial reports show each investment the District holds and he wished to make note of the reports which is reviewed by the board monthly. General Manager Watton indicated that the District has received $1,195,000 in grant money for the District's recycled water facilities.He indicated that this was monies which was not anticipated,but was received because the City of San Diego and other participants in the grant program were not ready to receive the 10 funding,so the District was granted the funds.He indicated that Congressman Filner is watching the program very closely and is working to assure that the U.S. President's budget included more money for Title XVI Grants.He stated the District expects to receive approximately another $5 million in grant monies for its recycled projects.Director Bonilla inquired where the monies would be placed. Chief Financial Officer Beachem indicated that monies from grants are placed in the Expansion Fund.This is restricted monies to be used specifically for the recycled program.He noted that the monies are reimbursement to the Expansion Fund for the money the District has already expended for the recycled projects. He noted that Mexico's water deliveries have terminated as scheduled and it is expected that the deliveries would resume in December 2008.He indicated that in October 2008 the board took an action to allow the General Manager to execute the new addendum to the old agreement.He stated that he had signed the agreement today and it is being forwarded to CWA who will handle the appropriate distribution.This ensures that all is in place to resume deliveries in December.Director Bonilla inquired what the commitment was.Chief Financial Officer Beachem indicated that the District is provided with a list of their water delivery needs which has been within the District's ability to provide through its system.Mexico was taking about 11.6 MGD per day,but the District is unsure what the'new schedule will request.It was noted that Mexico has honored every obligation for its water purchases and it is expected that they will honor future obligations.Director Bonilla requested that staff provide the board a memo noting bullet points of the important points in the agreement so they may answer the public's inquiries. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Croucher indicated that water conservation remains CWA's primary focus.They had approved $1.8 million for conservation advertising and received a grant for $500,000 which increases the advertising budget to $2.3 million for conservation alone.He stated the board also viewed the "Water:H20=Life" exhibit at the San Diego Natural History Museum in Balboa Park.He stated it was an ipcredible exhibit and encouraged everyone to attend.He stated that CWA will soon be voting on a new chair,vice chair and secretary.He indicated that General Manager Watton may be elected as vice chair which would be a great opportunity for the District.He stated that it is expected that Mr.Bud Lewis will be elected as chair and Mr.Tom Worn ham as secretary.It was noted that CWA will not hold a board meeting in November. 13.PRESIDENTS REPORT President Croucher congratulated Directors Bonilla,Lopez and Robak on their successful election to the District's board. 14.DIRECTORS'REPORTS/REQUESTS 11 Director Robak thanked everyone for their support.He shared that SDG&E is sponsoring the LED holiday lighting of the Water Conservation Garden for the holidays.The lighting event is scheduled for this evening.They will also be at the Garden this Saturday for their light exchange program from 11 :00 a.m.to 3:00 p.m.where they will exchange three stands of your holiday lights with LED lights. Director Breitfelder indicated that the Conservation Action Committee received a presentation from Camp Pendleton.They have a long standing conservation program as they utilize well water.They took the opportunity to teach water conservation in the same manner that is practiced by soldiers in the field.He indicated that he had an opportunity to present the water conservation message to the Chula Vista Retired Employees Association.He stated that he was very gratified to see after serious discussion of the water situation that the group was not fazed when the impact to water rates was discussed.He indicated that a presentation regarding VOCAL was provided at the October Water Agencies Association Dinner meeting.He stated that there was a good discussion on the prospects of VOCAL and it looks like there is at least a core with interest and the group will need to build interest from there.He noted that he and General Manager Watton met with City of San Diego Councilmember Ben Hueso.He is very engaged in water issues and it was good to hear him express how much he values the City of San Diego's relationship,on a business basis,with the District. Director Breitfelder also announced that he would be running for Councilmember John McCann's seat on the City of Chula Vista's council.Councilmember McCann will be termed out of office in a couple years and he has graciously endorsed Director Breitfelder.Director Breitfelder indicated that he wished to share this news as he did not wish District staff to be the last to know. Director Robak inquired with regard to the North District Study that he noted the Regional Quality Control Board had some questions and he wished to know if the project was moving along well.General Manager Watton indicated that the report is in draft form and is being reviewed.The District is receiving comments to finalize the study and it is moving forward. RECESS TO CLOSED SESSION 14.CLOSED SESSION The board recessed into closed session at 4:44 p.m.to discuss the following matters: g)CONFERENCE WITH LEGAL COUNSEL -PENDING LITIGATION [GOVERNMENT CODE §54956.9(a)] (I)INFRASTRUCTURE ENGINEERING CORP.v.OTAY WATER DISTRICT,COUNTY OF SAN DIEGO,SUPERIOR COURT,CASE NO.37-2008-00093876-CU-BC-CTL 12 I. iIIr I I (II)CITY OF BANNING v.JAMES JONES CO.,COUNTY OF LOS ANGELES,SUPERIOR COURT,CASE NO.BC 321513 h)CONFERENCE WITH LEGAL COUNSEL -POTENTIAL LITIGATION [GOV-ERNMENT CODE §54956.9(b)] 1 CASE RETURN TO OPEN SESSION 15.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION The board reconvened at 5:07 p.m (Director Robak left at 4:44 p.m.).General Counsel Yuri Calderon indicated that no reportable actions were taken in closed session. 16.ADJOURNMENT With no further business to come before the Board,Vice President Lopez adjourned the meeting at 5:08 p.m. President ATTEST: District Secretary 13 AGENDA ITEM 7a selection of Auditor for Fiscal Year Ending June 20,2009 TYPE MEETING: SUBMITIED BY: APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: STAFF REPORT Regular ~~MEETING DATE: James CUdlt>p,~eManager W.O.lG.F.NO: --~=?-Joseph R.Beachem,~hief Financial Officer German Al~Assistant General Manager March 4,2009 DIV.NO.All I II;, i: GENERAL MANAGER'S RECOMMENDATION: That the Board approve the Finance,Administration & Communications Committee's selection of an accounting firm to serve as the District's auditors for the fiscal year ending June 30,2009.The contract will be for l-year,with four (4)l-year options,with each option year subject to Board review and approval. COMMITTEE ACTION: See Attachment A. PURPOSE: To retain the services of an accounting firm to serve as the District's auditors for the Fiscal Year ending June 30,2009. Staff has reviewed proposals from eight accounting firms,to include conducting interviews with the four firms scoring highest on the evaluation of proposals.The result of this process is our recommendation that the Audit Committee interview the following two firms,and select one firm to be recommended as the District's auditor for the fiscal year ending June 30, 2009. Diehl Evans &Company,LLP Ortega &Konrad,LLP BACKGROUND: The District is required to retain the services of an independent auditing firm each fiscal year to perform an audit of the District's financial statements.For the past five years,the District has retained the services of Teaman,Ramirez &Smith,Inc.For Fiscal Year 2009,however,the District feels it is time to open up bidding to other potential audit service providers in order to maintain competitiveness in pricing and level of service,and to allow for the natural rotation of auditors in accordance with sound business practice. The Finance,Administration &Communications Committee also serves the Board as the Audit Committee.The purpose of an Audit Committee is to review the reports of external auditors, to include management letters and internal control recommendations,and ensure implementation by management.The committee also has the responsibility to recommend an accounting firm to the Board to perform the annual audit.The interview process is an opportunity for committee members to personally speak to the accountants who will be working on the audit. ANALYSIS: On January 7,2009,staff sent a Request for Proposals (RFP)to fourteen accounting firms to solicit interest in performing the audit of the District's financial statements for the fiscal year ending June 30,2009.The District received proposals from a total of eight audit firms,listed below with their proposed fees. r I, AKT,LLP Caporicci &Larson Charles Z.Fedak &Company Diehl Evans &Company,LLP Hoska,Nagel &Company Lance Soll &Lunghard,LLP Mayer Hoffman McCann P.C. Ortega &Konrad,LLP $31,000 $24,000 $24,000 $33,000 $15,582 $27,250 $35,600 $22,800 Technical proposals representing each of the eight firms were then reviewed and ranked according to criteria identified by staff as critical to a successful audit.The four firms scoring highest on the technical evaluation were then contacted for an on-site interview with District staff.Subsequent to the interview,the four finalists were again ranked using a combination of the original technical criteria and their performance during the interview.The result of this process is our recommendation that the Audit Committee interview the two top-ranked firms to select which firm to recommend to the Board as the District's auditor for the fiscal year ending June 30, 2009. 2 FISCAL IMPACT: The most important considerations in evaluating all of the firms were as follows:1)Firm qualifications and experience; 2)Partner,supervisory and staff qualifications and experience; 3)Similar engagements with other government entities; 4)Specific audit approach;and 5)Cost.While the two recommended firms are extremely well qualified and scored highest overall of the eight firms that submitted RFP's,staff believes the main differences between the two are: Diehl Evans &Company,LLP:A larger firm,with multiple offices and greater depth of personnel resources.No prior audit exposure to Otay Water District,so some additional hours are planned to get to know and understand all of the District's operations and internal controls.Also,more layers of audit management and review at the conclusion of the audit fieldwork. Ortega &Konrad,LLP:A small,single-office firm,but has prior direct knowledge of the District,with lower overhead and subsequently lower fees.Higher amount of hands-on audit work performed by partner-level staff. Copies of the two recommended firm's technical and fee proposals are included in this report as attachments. ,~.~ // Board approved audit fees are included in the District's annual Operating Budget. STRATEGIC OUTLOOK: The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT: Required by law. Attachments: A)Committee Action Form B)Diehl Evans &Company,LLP Audit &Fee Proposal C)Ortega &Konrad,LLP Audit &Fee Proposal D)Audit Proposal Analysis 3 " I ATTACHMENT A SUBJECT/PROJECT:Selection of Auditor for Fiscal Year Ending June 30,2009 COMMITTEE ACTION: The Finance,Administration,and Communications Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: •Staff is seeking to retain the sevices of an accounting firm to serve as the District's auditors for the Fiscal Year ending June 30,2009. I • • • Teaman Ramirez &Smith,Inc.has served as the District's auditor for the past five years and the District feels,as a Best Management Practice,that it should open up bidding to other potential audit service providers in order to maintain competitiveness in pricing,get a new view of the District's finances and assure objectivity. A Request for Proposal (RFP)was forwarded to fourteen accounting firms and the District received eight proposals. A panel consisting of Finance staff and the District's Purchasing Manager Steve Dobrawa reviewed and interviewed the interested firms.The panel selected Ortega &Konrad, LLP and Diehl Evans &Company,LLP as the top-ranked firms and invited their representatives to interview with the District's Finance,Administration and Communications Committee. Mr.Harvey Schroeder,representing Diehl Evans &Company, LLP,interviewed with the committee.He indicated: o His firm has offices in Irvine,Carlsbad and Escondido. o They have been doing business in Southern California for 75 years and have been providing services for governmental agencies since the,1950's. o They have audited 12 water districts and quite a few special districts in the area. o They have also provide services to public agencies on an as needed basis such as training,employee Y:\Soard\CurBdPkg\FINANCE\CommMtgAuditorSelect030409 (2).doc finances,W2's,etc.Staff has been attending their seminar on GFOA awards. o Their clients do submit for the GFOA awards and generally receive the awards. o All Diehl,Evans &Company LLP staff members, supervisory and above,working on the audit will be CPA's.Mr.Schroeder will oversee the audit and indicated that he has over 25 years of experience. The lead who will be assigned to the District's audit has over 16 years of experience.The audit will also be reviewed by another partner of Diehl Evans & Company for quality control. o Diehl Evans &Company requires continuing education for their staff members. o Mr.Schroeder indicated that they estimate that their staff would spend approximately 355 hours on the audit . •Mr.Mario Ortega,representing Ortega &Konrad,LLP, interviewed with the committee.He indicated: o His firm was established in 2003.Prior to establishing his firm,he had worked with Hutchison & Bloodgood,LLP for 16 years and was a lead auditor during four of the 16 years. o While at Hutchison &Bloodgood,LLP he had worked with Sweetwater Authority,Ramona MWD,Descanso WD,City of Escondido and Otay WD. o Mr.Ortega indicated that the benefit of selecting a small firm is he (a partner of the firm)and his associate,Mr.Luis Armeda,would handle the District's audit.Mr.Armeda has over 20 years of auditing experience and had worked for Diehl Evans & Company,LLP.While at Diehl Evans &Company he worked on auditing water districts.He became the Vice President of technology working on Y2K issues and later left to go on his own.Mr.Ortega contacted him in 2003 to join Ortega &Konrad,LLP. o Mr.Ortega indicated that he has been trained in ~Risk ManagementU and would tailor the audit to address risks specific to the District (~Risk Based Audit U ) • o Mr.Ortega had previously worked with the District in the late 1990's when he was employed by Hutchison & Bloodgood,LLP.Hutchinson &Bloodgood was selected as the District's audit firm at that time. o He stated that the cost difference between his firm and Diehl Evans &Company is that their overhead is ~II I not as high and since their audit is risk based,they would concentrate where there is risk (spend time where it is needed so they would be more efficient). Also since they have knowledge of the organization, they understand what it would take to complete an audit and have based their bid on that cost.They anticipate the audit would take between 160 and 200 hours. •It was dicussed that during the bidding process each bidder is provided the same scope of service description and the same questions and answers. •It was indicated that the benefits of a larger firm is they have more resources and more experience.Diehl Evans & Company is a very reputable firm and would do a very good job on the audit. •The benefits of a smaller firm is the audit would be handled by the partners of the company.Ortega &Konrad have previous knowledge of the District and the cost is lower because overhead is not as high.They would also do a good job on the audit. •The committee indicated that their responsibility to the District is to select the firm that is the most qualified to handle the job and experience is very critical. •Staff indicated that if they took the cost difference out, staffs'recommendation is to select Diehl Evans &Company, LLC to handle the District's audit. I.I I •It is expected that the audit would take approximately two weeks.If there are errors found,then it may take a little longer. The committee recommends retaining Diehl,Evans &Company,LLC and presentation of same to the full board on the consent calendar. OTAY WATER DISTRICT TECHNICAL AUDIT PROPOSAL FOR THE YEAR ENDING JUNE 30,2009 Ii ....)'~ \',.~\J \S'0 ATTACHMENT B ,,, ·Otay Water District RFP Subject: Name ofProposer: Local Address: Telephone: Fax: Website: Email: Contact Persons: Date: Title Page Comprehensive Annual Financial Report for the Otay Water District for the Year Ending June 30,2009 Diehl,Evans &Company,LLP Certified Public Accountants and Consultants 2965 Roosevelt Street Carlsbad,CA 92008 (760)729-2343 (760)729-2234 www.diehlevans.com harveys@diehlevans.com Harvey J.Schroeder,CPA Engagement Partner David Forman,CPA Engagement Manager/Principal Nitin Patel,CPA Consulting Partner January 21,2009 Otay Water District January 21,2009 Letter ofTransmittal Quali f1cations of the Firm: Includes a Summary of Our Qualifications and General Information on Our Firm References and Summary ofSimilar Experience Audit Team Audit Scope and Approach Audit Timing Work Required of District Staff Attachments: Attachment I -Warranties Attachment II -Resumes of Partners and Key Personnel Assigned to Audit Attachment III -Results ofOutside Quality Review Table of Contents Page Number I - 2 , I 3-5 [I I:" 6-10 II I 12 -16 17 17 18 -19 20-22 No Page Number DIEHL,EVANS &COMPANY,LLP CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008-2389 (760)729-2343 •FAX (760)729-2234 www.dichlev3ns.com January 21,2009 Mr.Joseph R.Beachem,Chief Financial Officer Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley,California 91978-2096 Dear Mr.Beachem: ·PHILIP H.HOLTKAMP,CPA ·THOMAS M.PERLQWSKI,CPA ·HARVEYJ.SCHROEDER,CPA KENNETH R_AMES.CPA ·WILLIAM Co PENTZ,CPA MICHAELR.LUDIN,CPA CRAIGW.SPRAKER,CPA NITIN P.PATEL,CPA ROBERTJ.CALLANAN,CPA ...A PROFESSIONAL CORPORATION We are pleased to present our proposal to serve as independent auditors for the Otay Water District.We have prepared this information in accordance with the guidelines set forth in your request for proposal. Why We Are The Best Qualified Firm We consider ourselves to be the best qualified firm to perform auditing and accounting services for the Qtay Water District.Please consider these qualifications: •Diehl,Evans &Company,LLP has been located in Southern California for more than 75 years.Our film consists of 9 partners,3 principals and approximately 35 other professional staff.The staff who would be assigned to your audit work out ofour Carlsbad and Escondido offices. •Unlike many other accounting firn1s,we have a relatively low stafftumover rate.This has allowed us to keep continuity in our engagement teams from year to year,and has allowed our professional staffto gain extensive municipal auditing experience.Since our staff is familiar with municipal procedures and records,this will eliminate much disruption to your staff.We make a commitment to retain the same staffon the audit from year to year,except when such personnel leave the firm.Ifa staffmember is replaced,we also make a commitment to replace that person with staffofat least equal experience.We understand and support the District's ability to accept or reject replacement staff. •Diehl,Evans and Company,LLP has been providing auditing services to governmental agencies since 1950.A significant part ofour practice is devoted to providing professional services to your specialized industry and over the past year,ourfirm audited seventeen special districts which included twelve water districts,twenty-five cities ofwhich many operate their own municipal water operations,and many other governmental agencies. •The District may require a single audit of its federal grants,in accordance with GovemmentAuditing Standards and OMB CircularA-l33.We perfonn single audits on substantially all of our audit clients. 1 OTHER OFnCES AT:613 W.VALLEY PARKWAY,SUITE 330 ESCONDIDO,CALIFORNIA 92025-2598 (760)741-3141 •fAX (760)741-9890 2121 ALTON PKWY,SUITE 100 IRVINE,CALIFORNIA 92606-4906 (949)-399-0600.FAX (949)399-0610 Why We Are The Best Qualified Finn (Continued) •Over the years,we have developed a wide knowledge of tax issues related to governmental entities and their employees.Our tax department regularly issues tax opinions to our governmental clients on such issues as the tax consequences of forming nonprofit corporations,employee benefit plans,payroll tax reporting problems, Form 1099 filing requirements,etc. •We are a full service CPA firm.Our Management Consulting Department can provide the District with a wide variety ofservices,including investment policy compliance reviews,litigation support and dispute resolution services,consulting on governmental tax issues,cost allocation plans and computer systems consulting. We make a commitment to deliver all necessary reports based on the timetable presented herein on page 12.Also, our understanding of the work to be perfonned is set forth on pages 12-17. Our goal is to provide the District with the highest quality ofservice which meets all required reporting standards and a comprehensive management letter,which is practical and helpful to management in improving operations. AIso,our goal is to maintain a close,personal relationship with you and your staff,one that is a year-round working relationship.You should feel comfortable in calling on us for advice at any time.We will always be available should you require our services. We respectfuIly request that we be selected as the independent auditors for the District for the year ending June 30, 2009.We look forward to personally meeting (speaking)with you to discuss our qualifications. We thank the District for the opportunity to present our proposal.Please feel free to contact me at (760)729-2343 if you have any questions.This proposal constitutes a firm and irrevocable offer until April 26,2009.I am authorized to represent our firm,and bind the firm to a contract. Very truly yours, DIEHL,EVANS &COMPANY,LLP By:----'~~;2F~Z~.~~~~~~~/~__Harv~y 1.Schroeder,CPA Engagement Partner 2 Olav Water District Audit Proposal-Technical Proposal QUALIFICATIONS OFTHE FIRM SIZE AND LOCATION OF THE FIRM !II~ Diehl,Evans &Company,LLP is a Southern California accounting firm with offices in Carlsbad,Irvine,and Escondido.We are one ofthe oldest CPA firms in Southern California,with more than 75 years of public practice experience.Our firm consists of 9 partners,3 principals and approximately 35 other professional staff. Diehl,Evans &Company,LLP has extensive experience in governmental auditing and accounting.More than twenty thousand hours per year are devoted to this area ofour practice for nearly 100 governmental units including cities,redevelopment agencies,water districts,special districts,nonprofitcorporations and joint power authorities. Your District would be served from our Carlsbad and Escondido offices,which have 4 partners,2 principals and approximately 10 professional staff. Substantially all of our professional staffhas experience with governmental auditing. RANGE OF ACTIVITIES Diehl,Evans &Company,LLP is a full service CPA firm.We offer a broad range of services,including: Certified Audits Tax Planning Compilations and Reviews Income Tax Preparation Limited Procedure Reviews Management Consulting Services Financial Planning Our specific services for governmental agencies are more fully set forth in this proposal. LICENSING AND INDEPENDENCE Our firm,and all ofour certified personnel,are properly licensed to practice public accounting in California. Also,we meet the independence requirements of"Governmental Auditing Standards"(2007 Edition),as published by the U.S.General Accounting Office. Our firm is independent ofthe District as defined by Governmental Auditing Standards. PARTICIPATION IN "OUALITY REVIEW"PROGRAMS In 1986,our firm began an annual internal quality review program,whereby all three offices are reviewed for compliance with all current accounting and auditing requirements.Formal reports ofthese reviews are presented to the partners,and adjustments in our auditing and reporting procedures are made as necessary. In January 2006,our firm underwent a quality review by an independent CPA firm,under provisions oftheAICPA Quality Review Program.These reviews are required every three years and covered our audits ofgovernmental agencies.We received a final report dated January 13,2006 with an unqualified opinion on our systems and procedures.A copy ofthe independent CPA firm's report is included herein at Attachment III.Accordingly,we are confident that our current auditing standards and techniques meet all existing requirements. No regulatory action has ever been taken against any office of our firm due to substandard work.We had no significant deficiencies noted in any federal or state desk reviews over the past three years. 3 Otay Water District Audit Proposal-Technical Proposal EDUCATION PROGRAMS Diehl,Evans &Company,LLP has a formal continuing education program.All firm auditors are required to obtain 80 hours ofcontinuing education every two years in the accounting and auditing area as required by Government Auditing Standards,and at least 24 hours of government related continuing education courses.Our staff is continually expanding their knowledge of the governmental industry through our in-house training programs, programs offered by the AICPA,the California Society of Certified Public Accountants and other professional organizations,and through on-the-job training.We also publish an Auditing Manual For Governmental Entities for internal lise by our staff.The manual is updated at least annually. Noted below is a description of certain in-house education courses taken by our partners and staff to meet the governmental continuing education requirements.All personnel involved with governmental auditing are required to attend these courses. •New Risk Assessment Standards •Implementation ofGASB Statement No.34,Basic Financial Statements -and Management's Discussion and Analysis -for State and Local Governments •Understanding,and Auditing,Deposits and Investments ofCalifornia Governmental Units •Reviews of Internal Controls in Accordance With Statements on Auditing Standards •Assessing Audit Risk and Materiality in Conducting An Audit •Understanding the Gann Computation •Redevelopment Agency Compliance Audits -Interpreting the Health and Safety Code •Computer Auditing in the Governmental Environment •The Single Audit -New Provisions under OMB Circular A-133 •Laws and Regulations in the Government Sector PARTICIPATION IN PROFESSIONAL ORGANIZATIONS Our partners and staff are actively involved in professional organizations in the governmental accounting field. Noted below is a summary of our participation in various national and California governmental organizations. GFOA,GASB and FASB Our firm is an associate member ofthe Government Finance Officers Association ofthe United States and Canada (GFOA). Also,we have subscriptions with the Governmental Accounting Standards Board (GASB)and the Financial Accounting Standard Board (FASB).We receive all GASB and FASB Statements,Interpretations,Technical Pronouncements and Newsletters.We regularly analyze these pronouncements and advise our governmental clients of changes in accounting rules. 4 Otay Water District Audit Proposal-Technical Proposal PARTICIPATION IN PROFESSIONAL ORGANIZATIONS (CONTINUED) CSMFO Partners in our Irvine and Carlsbad offices (Mr.Harvey Schroeder,Mr.Michael Ludin,Mr.Craig Spraker,Mr.Nitin Patel and Mr.Robert Callanan)and our Director ofManagementConsulting (Mr.William S.Morgan)are associate members of the California Society ofMunicipal Finance Officers (CSMFO).Our personnel regularly attend local CSM FO chapter meetings throughout Southern California,and the annual statewide conference.We often provide publ ic speakers for these meetings. CSCPA AII Escondido and Carlsbad office partners and principals are members ofthe California Society ofCertified Public Accountants (CSCPA).Several professional staff members are also members ofthe CSCPA. GFOA AND CSMFO AWARD PROGRAMS The partner and manager will be involved in all phases ofreport preparation.Reporting checklists will be used to assure compliance with all reporting requirements.Based on the high quality ofour review process,we have been able to assist various districts and cities in obtaining the GFOA "Certificate of Achievement for Excellence in Financial Reporting"and the "Outstanding Award"for financial reporting from CSMFO.During the past five years, the following clients received awards: Special Districts: Cucamonga County Water District Mesa Consolidated Water District Rancho California Water District Santa Fe Irrigation District Cities: Alhambra Fullerton Lake Elsinore Encinitas Cerritos Garden Grove Lakewood Santa Clarita Chino Healdsburg Mission Viejo Signal Hill Commerce Hesperia Montebello Simi Valley Coronado Huntington Beach Norwalk Temecula Del Mar Indian Wells Pico Rivera Thousand Oaks Diamond Bar Irvine San Juan Capistrano Tustin 5 Otay Water District Audit Proposal-Technical Proposal REFERENCES AND SUMMARY OF SIMILAR EXPERIENCE SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES The following are the 4 most significant engagements perfoffiled in the past five years. Santa Fe Irrigation District: Scope of Work:Issued audits for the District,Filtration Plant and Financing Authority. Engagement Date:Audits for June 30,2002 -2006 Approximate Total Annual Hours:350 Hours Engagement Partner:Harvey Schroeder,CPA Principal Contact:Mr.Michael Bardin,General Manager (858)756-2424 Borrego Water District: Scope of Work:District Audit Engagement Date:Audits for June 30,1995 -Present Approximate Total Annual Hours:250 Hours Engagement Partner:Harvey Schroeder,CPA Principal Contact:Mr.Jerry Rolwing,Interim General Manager,(760)726-5856 San Dieguito Water District: Scope ofWork:District Audit Engagement Date:Audit for June 30,2006 -June 30,2008 Approximate Total Annual Hours:175 Hours Engagement Partner:Mike Ludin,CPA Principal Contact:Mr.Jay Lembach,Finance Officer,(760)633-2600 Leucadia Wastewater District: Scope of Work:District Audit Engagement Date:Audits for June 30,1999 -2004 Approximate Total Annual Hours:175 Hours Engagement Partner:Harvey Schroeder,CPA Principal Contact:Mr.Paul Bushee,General Manager,(760)753-0155 6 .1II Otav Water District Audit Proposal -Technical Proposal CITY CLIENT REFERENCES One means ofjudging the high quality ofour auditing and accounting services would be contact with some ofour existing clients.We are including the names and phone numbers ofseveral ofthe city clients mentioned above.We encourage you to contact any of these individuals. City of Hesperia Mr.Brian Johnson Director ofAdministrative Services (760)947-1441 Engagement:Audit Dates:6/30/1997 -6/30/2008 Ci tv 0 f Coronado Ms.Leslie Suelter Director ofAdministrative Services (619)522-7300 Engagement:Audit Dates:6/30/79 -6/30/2007 Citv ofDel Mar Finance Director (858)755-9354 Engagement:Audit Date:6/30/1994 -6/30/2005 Citv ofEncinitas Mr.Jay Lembach Finance Officer (760)633-2600 Engagement:Audit Date:6/30/2006 -6/30/2008 WATER DISTRICTS AND OTHER SPECIAL DISTRICTS Noted below is a listing ofwater and special districts audited by our firm over the past year. Water Districts Borrego Water District Cucamonga Valley Water District Jurupa Community Services District La Habra Heights County Water District La Puente Valley County Water District Laguna Beach County Water District San Luis Rey Municipal Water District Coachella Valley Association ofGovernments Downey Cemetery District Walnut Valley Water District Pomona-Walnut-Rowland Joint Water Line Commission Puente Basin Water Agency Rancho California Water District San Dieguito Water District Other Special Districts Sunset Beach Sanitary District Valley Wide Recreation and Park District Encinitas Ranch GolfAuthority 7 Otay Water District Audit Proposal Technical Proposal ENTERPRISE FUND EXPERIENCE Most cities audited by our firm have a water utility enterprise fund.Noted below is a partial listing of other enterprise funds audited by our firm over the past five years: City Alhambra Buena Park Cerritos Chino Coronado Del Mar Downey Encinitas Fullerton Garden Grove Healdsburg Hesperia Huntington Beach Lakewood Mission Viejo Montebello Norwalk Pa Im Desert Pico Rivera San Juan Capistrano Santa Clarita Simi Valley Thousand Oaks Tustin Westminster Enterprise Water,Sewer,Storm Drain,Sanitation,Golf Course Water Reclaimed Water Water,Sewer,Sanitation System GolfCourse,Sewer Sewer GolfCourse,Transit System Water,GolfAuthority Water,Refuse Water,Sanitation,Mobile Home Parks Electric,Water,Sewer,Transit Water,Sewer Water,Golf,Housing,Refuse Water Animal Services,Television Water,Golf,Transit Transit Golf,Building Water Water,Sewer Transit Water,Sanitation,Transit Water,Sewer,Golf Water Water SINGLE AUDIT EXPERIENCE f[, I f i:, I We perform single audit services for most of our cities that receive federal funds as required by OMB Circular A-133.Over the past year,Single Audits were performed for the following cities. City ofAlhambra City ofBuena Park City of Cerritos City of Chino City of Commerce City of Downey City of Fullerton City of Hesperia City of Indian Wells City of Irvine 8 City ofLakewood City ofMission Viejo City of Montebello City ofNorwalk City of Pico Rivera City of San Juan Capistrano City of Santa Clarita City ofThousand Oaks City ofEncinitas City ofWestminster Otay Water District Audit Proposal-Technical Proposal NONPROFIT CORPORATIONS AND JOINT POWER AUTHORITIES Noted below is a partial listing ofnonprofit corporations and joint power authorities audited by our finn over the past year.A substantial number ofthese entities are "component units"which are combined into the basic financial statements of governmental organizations which exercise oversight responsibility. Buena Park Foundation Cal State L.A.Metrolink Authority Conejo Open Space Conservation Agency Coronado Financing Authority Coronado Improvement Corporation Cove Community Public Safety Commission Downey Civic Center Corporation Downey Recreational Area Authority Downey Water Facilities Corporation El Toro Reuse Planning Authority Healdsburg Public Improvement Corporation Torrey Pines High School Foundation Lake Elsinore Financing Authority Lake Elsinore Recreation Authority Norwalk Financing Authority Pico Rivera Water Authority Public Cable Television Authority Redwood Empire Financing Authority San Juan Capistrano Housing Corporation Santa Clarita Watershed Recreation and Conservation Authority South County Senior Services Southeast Area Animal Control Authority Walnut Valley Building Corporation EXPERIENCE WITH PREPARATION OF STATE-MANDATED REPORTS We have experience with the preparation of various state-mandated reports,such as the State Controller's Report Statements of Indebtedness,and the Annual Street Report.We regularly prepare them for some of our clients. 9 Otay Water District Audit Proposal-Technical Proposal EXPERIENCE WITH GOVERNMENT BOND OFFERINGS ,;! i Most ofour governmental clients regularly issue bonds and other financing vehicles.Our finn is often involved with the following types offinancing: Tax Anticipation Notes Revenue Bonds Special Assessment District Bonds Industrial Development Bonds Lease Purchases Tax Allocation Bonds Certificates ofParticipation Residential Mortgage Revenue Bonds Municipal Sale/Leaseback Arrangements Bank Notes The Firm provides a variety ofservices in connection with these financing arrangements,depending on the extent of our association with the offering.Under guidelines provided by the AICPA,we are "associated with"an offering if we provide any ofthe following services: I.Manually sign the auditors'report included in the offering document. 2.Provide a "consent letter"or "comfort letter"in connection with the official statement. 3.Review drafts ofthe official statement at the entity's request. 4.Assist in the preparation ofsupplemental financial information included in the official statement. Under these circumstances,we perform a "subsequent events"review ofthe entity's financial condition inmlediately prior to the effective date ofthe offering.Such reviews are not part ofour standard fee arrangements,and would be subject to a separate fee quotation. Finally,we regularly issue separate certified audit reports on individual bond issues,such as mortgage revenue bonds and industrial development bonds. MANAGEMENT CONSULTING SERVICES We have extensive experience in the following areas: •Consulting on Governmental Tax Issues •Cable Television Consulting Services •Hotel Transient Occupancy Tax Reviews •Litigation Support Services for Governmental Agencies •Dispute Resolution Services for Redevelopment Agencies •Fraud Investigation for Police Department •Reviews ofSolid Waste Contractors •Franchise Compliance Reviews •Review ofPilot Recycling Program •Assistance with Trash Rate Negotiations •Redevelopment Agency Consulting •Cost Allocation Plans •Computer Consulting Services •System Design •Documentation and Training •Internal Control Reviews 10 t Otay Water District AUDIT TEAM Audit Proposal-Technical Proposal The audit team will consist ofthe engagement partner,audit principal,audit manager,and one staffaccountant. The engagement partner will be Mr.Harvey J.Schroeder,CPA.He will be the primary contact for all matters involving the audit and will be responsible for assuring that all work for the District is performed in a complete and timely manner.He will work with the audit manager to coordinate and supervise the audit team.Mr.Schroeder brings many years ofexperience in a wide variety ofgovernmental audit,accounting and consultation engagements. He brings extensive experience analyzing and solving complex and unique accounting issues. Mr.David Forman,CPA,will serve as the audit principal.He will coordinate the engagement,supervise the audit team,schedule all field work,monitor time budgets and perfornl field work with the audit team.Mr.Fonnan will also serve as the engagement's IT consultant and will perfol111 the EDP review.He brings to the engagement more than fourteen years ofexperience performing and supervising governmental auditing and accounting engagements. Mr.Lee Parravano,CPA,will serve as the audit manager.He will work with Mr.Forman coordinating the engagement and the work of the staff auditor,as well as perfol111ing audit interim and year end field work.Mr. Parravano has more than six years of experience working with clients including many Cities,Water Districts and other Governmental Agency audits. The audit staffassistant will beMr.Joshua Basile,CPA.He will work under the direct supervision ofMr.Parravano for all field work,preparation ofthe audit plan and audit programs,review and analysis ofintemal controls,research of accounting and auditing problems and preparation (or assist in preparing) requested reports.He will also assist with preparation of management letters.Mr.Basile has four years ofexperience working with clients including many Cities,Water Districts and other Governmental Agency audits. Resumes for Mr.Schroeder,Mr.Forman and Mr.Parravano are included atAttachment II. COMMITMENT RELATED TO PERSONNEL We make a commitment to retain the same personnel from year to year,except when such personnel leave the fil111, or when the change is approved by the District.Ifa staffmember is replaced,we make a c0111l11itment to replace that person with staffof at least equal experience.We understand and SUppOlt the District's ability to accept or reject replacement staff NONDISCRIMINATION POLICY Our firm has a policy to provide equal employment opportunities to all qualified persons without regard to race, color,age,sex,religion,national origin or handicap. 11 Otay Water District Audit Proposal-Technical Proposal AUDIT SCOPE AND APPROACH ENTITIES TO BE INCLUDED IN AUDIT Otay Water District REPORTS TO BE ISSUED AND DUE DATES I Otay Water District Comprehensive Annual Financial Report Otay Water District Single Audit Draft Due Dates September 25th September 25th Final Due Dates October 9th October 9th I I Otay Water District Annual Report ofFinancial Transactions As required by the State Controller Management Letter September 25th October 9th AUDITS TO BE IN ACCORDANCE WITH GAAS AND OTHER REOUlREMENTS We will audit the nnancial statements of the District as noted above.Our audits will be in accordance with auditing standards generally accepted in the United States ofAmerica as set forth by the AICPA,and will include such auditing procedures as we consider necessary under the circumstances. Our audits will conform with the guidelines set forth in the AICPA's Industry Audit Guide,Audits ofState and Local Governmental Units.Our audits will also conform to all applicable guidelines set forth in the State Controller's Minimum Audit Requirements for California Special Districts. SPECIAL SERVICES The District may request certain special services.With regard to these engagements,we intend to perfOilli limited procedures reviews in connection with each assignment,in accordance with the AICPA's attestation standards. Under the provisions ofthe attestation standards,the District will designate what specific procedures it wishes to have performed.We will then perfol1l11 those procedures and report on our findings.This type ofengagement will not constitute a certified audit in accordance with auditing standards generally accepted in the United States ofAmerica. Such special services are not part ofour standard fee arrangements and would be subject to a separate fee quotation. AUDIT APPROACH Our firm uses a governmental audit program which we will modify to the Otay Water District's operations based on the requirements ofStatement ofAuditing Standards (SAS)104 thm III (Risk Assessment Standards).Our audit programs are organized using risk assessment procedures to identify testing ofinternal controls and general ledger account balances. 12 Otay Water District I.Planning and Interim Work: Audit Proposal-Technical Proposal AUDIT APPROACH (CONTINUED) Gather information about the District and its environment,including internal control: •Preaudit conference with the District to establish process ofcommunication between the audit team and District staff. •Establish scope ofworking and timing of fieldwork. •Evaluate the design ofintel11al controls that are relevant to the audit and determine whether the control, either individually or in combination is capable of effecting,preventing or detecting and conecting material misstatements. •Determine that the controls have been implemented,that is,that the controls exist and that the District is using it. •Specific areas to review include: Accounts payable/cash disbursements Accounts receivable/cash receipts Payroll disbursements Utility billing process Investment compliance Property and equipment Grant administration Budget process 2.Final Audit Work: During the tlnal audit work,we will assess "risk"of material misstatement based on understanding of the District's audit environment,including its internal control,to identify account balances to audit that appear in the District's financial statements.Our work may include: •Confirmation ofcash and investments balances and testing ofbank reconciliations. •Contlrm signitlcant receivable balances orreview subsequentcash receipts to verify receivable balance. •Search for unrecorded liabilities. •Test capital asset additions and depreciation expense. •Contlrm long-term debt balances and review the accounting treatment ofdebt issued or refunded. •Test support for other signitlcant assets or liabilities. •Analytical procedures on balance sheet and revenue and expenditure accounts,to evaluate and explain unusual fluctuations from prior year balances or cunent year budgeted amounts. •Review of attorney letters for signitlcant legal matters affecting the District's tlnancial position. The audit workpapers will be reviewed by our management team in the field so that at the conclusion of the tleldwork we are able to report any adjustments or findings.An exit conference will be held to review any significant adjustments or findings. 13 Otav Water District 3.Level of StaffHours: Audit Proposal-Technical Proposal AUDIT APPROACH (CONTINUED) We anticipate the level of hours to be assigned to be approximately as follows: Hours Partners Technical Reviews/Principals Managers Supervisory Staff StaffAccountants Total 30 45 50 80 150 355 COMPUTER AUDITING CAPABILITIES In connection with our initial evaluation ofinternal controls,our in-house computer audit consultant will perform a review ofyour network and computing environment.His review will examine the District's organizational,physical, and operational controls. More specifically,our auditors verify to what extent the District is utilizing: •Access controls (password restrictions,etc.) •Master file change controls •Back-up procedures •Management review ofdocuments and reports provided by the computer system After our evaluation of internal controls,we will determine to what extent computer auditing techniques will be utilized.For some testing,we may audit "through"the District's computer-produced records,rather than "around" them.The extent ofour computer auditing will be determined based on our analysis ofthe cost effectiveness ofthese techniques. For districts that use a fully integrated,on-line computer system,our audit staff members may become knowledgeable with the District's procedures for accessing and making "inquiries"into the various computer appl ications.In some instances,we may be able to randomly access and print-out sample data without significant assistance from District staff Otherwise,we may need to request that District staff assist us in accessing and printing-out the desired data. The computerconsultant who will be performing your computer review will be Mr.David Forman,CPA a principal ofDiehl,Evans &Company,LLP.His resume is included in attachment II. 14 Otay Water District Audit Proposal -Technical Proposal SINGLE AUDIT APPROACH If a single audit is required it will be performed in accordance with all the requirements of the Single Audit Act Amendments of 1996,OMB Circular A-133,Government Auditing Standards issued by the GOA (the "Yellow Book")and AICPA Statement on Auditing Standards No.68,"Compliance Auditing Applicable to Governmental Entities and Other Recipients of Governmental Financial Assistance". Our audit will include tests oftransactions related to major federal award programs for compliance with applicable laws and regulations and the provisions ofcontracts and grant agreements.Becausean audit is designed to provide reasonable,but not absolute assurance and because we will not perform a detailed examination ofall transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by use.In addition,an audit is not designed to detect immaterial misstatements or violations oflawsor governmental regulations that do not have a di rect and material effect on the financial statements or major programs.However,we will inform you ofany material errors and any fraudulent financial reporting or misappropriation of assets that comes to our attention.We wi II also inform you ofany violations oflaws or governmental regulations that come to our attention,unless clearly inconsequential.We will include such matters in the reports required for a Single Audit. We will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program.However,our tests will be less in scope than would be necessary to render an opinion on those controls and,accordingly,no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. We will plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions ofcontracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-133 "Compliance Supplement"for the types ofcompliance requirements that could have a direct and material effect on each ofthe District's major programs.The purpose of those procedures will be to express an opinion on the District's compliance with requirements applicable to major programs in our report on compliance issued pursuant to OMB CircularA-133. When we begin the single audit,we will identify the Major and NonmajorFederal Financial Assistance Programs of the District.Each Major and Nonmajor program will be identified as either a low risk or high risk program. Programs to be tested will be selected based on our assessment ofrisk for each program. We will identi fy the types ofactivities thatare either specifically allowed or prohibited by the laws,regulations,and contract or grant agreements pertaining to the programs and document an understanding ofthe internal controls the District has to provide reasonable assurance that federal awards are expensed only for allowable activities or costs. We will select a sufficient number oftransactions to support a low level ofassessed control risk.Ifno exceptions in the function ofkey controls are noted,we will conclude that a low level ofcontrol risk was achieved.Ifweaknesses in the internal controls are noted,we will modify our audit program as needed. As part ofoursingle audit,we will requestthat the District assist in completing the Data Collection Form.The form will assist us in identifying the federal programs which will be required to be tested. 15 Otay Water District Audit Proposal-Technical Proposal APPROACH IN DETERMINING LAWS AND REGULATIONS SUBJECT TO AUDIT Under provisions ofAICPA Statement on Auditing Procedures No.74,Management ofthe District is responsible for identi fying to its outside auditors any laws and regulations which would have a significant effect on the audit.This would include federal laws (such as federal grant regulations),State laws (such as permitted investments under the Cali fornia Government Code)and local laws (such as restrictions on special revenues levied by the District).After our selection as auditors,we will consult with District officials regarding these matters,to determine what laws and regulations need to be evaluated in connection with our audit.Ifa District is not able to identify specific laws and regulations that effect it,we have references (California Government Code and Health and Safety Code)to the more common laws,rules and regulations in our standard audit programs for the usual activities of a Special District which wil1 assist us in identifying laws and regulations to review in the audit. POTENTIALAUDIT PROBLEMS We are not anticipating any unusual audit problems. METHOD OF SAMPLING Our approach is to utilize random sampling based in our testing of the internal control systems related to cash receipts,cash disbursements,payrol1 and utility billings.Based on a statistical conclusion used by the firm our sample sizes can range from 25 to 60 transactions.A random sample selection allows each item in the population of an equal chance of being selected.In addition,for disbursements,we may select a stratified sample of all transactions over a specified dollar amount for review. ANALYTICAL PROCEDURES Analytical procedures are used in the planning and final stages ofthe audit.In the planning phase,we use analytical procedures to identify unusual financial transactions and comparing relationships to expected results.We compare current year information to the prior years for balance sheet items,revenues and expenditures.In addition,revenues and expenditures are compared to budgets to identify unexpected results.In the final stages of the audit,the financial statements are reviewed to identify expected relationships such as comparing debt paid to expenditures recorded on governmental funds,transfers between funds,depreciation expense,etc.For all significant relationships identi fied,explanations are obtained as to why the situation occurred and additional audit procedures are applied to resolve any concerns. MANAGEMENT LETTERS In connection with each audit,a complete review of internal controls will be made ofall significant accounting procedures.Our firm uses an internal control questionnaire and a computer systems questionnaire to develop in formation for the management letter.Upon the completion ofeach audit and discussion with appropriate District staff,our firm will submit a management letter which shall identify weaknesses observed during these reviews and throughout the audit,assess their effects on financial management and recommend steps toward eliminating the weaknesses. RETENTION OF AND ACCESS TO AUDIT WORKPAPERS In accordance with provisions of OMB Circular A-133 and GAO requirements,our audit workpapers will be maintained for at least five years after the date ofthe report.These workpapers will be made available as necessary to your cognizant audit agency (or its designee),to GAO representatives,or to any other federal or state agency needing access to the workpapers.Also,our firm will respond to any reasonable inquiries ofsuccessor auditors and we will allow any successor auditors to review our workpapers. 16 Otay Water District AUDIT TIMING Audit Proposal-Technical Proposal Assuming that the District's books are closed and ready for examination and that all necessary schedules and documents are available for our use by the l5'h ofAugust,we propose to arrange the various phases ofthe audit,for the first year,approximately as follows,and commit to deliver the reports by the deadlines as outlined on page 12 (Audit Scope and Approach): Interim Work:Late May through Early June •Preparation for interim field work •Internal control work •Prepare confirmations Send Confirmations June 30th Planning Work:Mid -June •Review results ofintemal control work •Planning meetings •Design audit programs Year End Field Work:August 17'"-August 28'1> Reports •September 25'h - Draft ofreports delivered •October 9'1>-Delivery offinal reports WORK REOUIRED BY DISTRICT STAFF Our fixed annual fees contemplate that conditions satisfactory to the normal progress and completion of the examination will be encountered and that District accounting personnel will furnish the agreed-upon assistance in connection with the audit.However,ifunusual circumstances are encountered which make it necessary for us to do additional work,we shall report such conditions to the responsible District officials and provide the District with an estimate of the additional accounting fees involved. Noted below is a listing of work required by District staff to assist in the audit. I.Technical assistance in familiarizing our staffwith: •The flow ofinfonnation through the various departments and accounting systems. •Reports generated by your accounting system. •The system of internal controls. •Controls established to monitor compliance with federal grants. 2.Preparation oftrial balances for all funds,after posting ofall year end journal entries. 3.Preparation of supporting schednles,if any,in addition to the District's internal workpapers.A list of documentation requested by the auditor to be prepared by the District,ifany,will be provided to the District at least two weeks before the start of final field work. 4.Typing ofall confirmation requests. 5.Pulling and re-filing ofall supporting documents required for audit verification. 6.Preparation ofthe Management's Discussion and Analysis and any other supplementary schedules to be included in the report. 17 Otay Water District Audit Proposal Warranties ATTACHMENT I PROPOSER GUARANTEES AND WARRANTIES Otav Water District Audit Proposal-Guarantees and Warranties PROPOSER GUARANTEES 1.Diehl,Evans and Company,LLP certified it can and will provide and make available,as a minimum,all services set forth in Section II,Nature ofServices Required. Diehl,Evans &Company,LLP Firm Signature Partner Title 18 Harvey J.Schroeder,CPA Printed Name January 21,2009 Date Otav Water District Audit Proposal-Guarantees and Warranties WARRANTIES Diehl,Evans &Company,LLP warrants the following: I.The firm is willing and able to comply with State ofCalifomia laws with respect to foreign (non-state of California)corporations. 2.The firm is willing and able to provide proof of insurance covering the following areas:I)general liability;2)worker's compensation;3)errors and omissions providing a prudent amount ofcoverage for the willful or negligent acts,or omissions ofany officers,employees,or agents thereof. 3.The firm will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the District. 4.All information provided by the firm in connection with this proposal is true and accurate. Diehl,Evans &Company,LLP Firm i I. ,, I Signature Partner Title 19 Harvey 1.Schroeder,CPA Printed Name January 21,2009 Date Otay Water District ATTACHMENT II RESUMES OF PARTNERS AND KEY PERSONNEL ASSIGNED TO AUDIT Audit Proposal-Resumes Otay Water District HARVEYJ.SCHROEDER,CPA Audit Proposal Resumes Position Education Professional Organizations Range of Experience Pattner San Diego State University Bachelor ofScience in Accounting Recent Relevant Continuing Professional Education: Risk Based Auditing 8/08 The New Risk Assessment Standards 5108 Audits ofNonpublic Organizations 12/07 The New Risk Assessment Standards 12/07 GAGAS Audits 8/07 Audits ofNonprofit Organizations 12/07 GAAS Audits under the New Risk Assessment Standards 7/07 GASB 34 Update -12/06 Intemal Controls and IT -8/06 GASB Update -8/06 Budget Reporting,MD&A,CAFR's -12/05 Planning a GovemmentAudit -12/05 GASB 34 Review &Update -7/04 American Institute ofCertified Public Accountants California Society ofCertified Public Accountants California Society ofMunicipal Finance Officers Accounting Principles and Auditing Standards Committee ofthe San Diego Chapter, California Society ofCPAs Governmental Accounting and Auditing Committee ofthe San Diego Chapter,California Society ofCPAs Has been with Diehl,Evans and Company since 1984 Has over 25 years experience including governmental audits ofcities,redevelopment agencies,water districts and special districts for the following clients; City ofHesperia Hesperia Fire District City ofBig Bear Lake City ofBig Bear Lake RDA City ofCoronado Borrego Water District National City RDA North County Transit District San Luis Rey Water District Hesperia Water District Hesperia Conununity Redevelopment Agency City ofBig Bear Lake Dept.ofWater City ofBig Bear Lake Fire Protection District City ofAvalon Leucadia Wastewater District Valley Wide Recreation and Park District Santa Fe Irrigation District 20 Otay Water District Position Education Licensing DAVID B.FORMAN,CPA Audit Manager/Principal/IT Consultant University ofCalifornia,San Diego Bachelor ofArts University ofCalifornia,San Diego,Extension Professional Certificate in Accounting Celtified Public Accountant in California since May 1996 Audit Proposal -Resumes I~~l j,),! Consulting Experience System Design System Administration Technical Support Negotiation with Vendors Range of Experience System Installation User Training Workstation Configuration Has more than fOUlteen years ofexperience in governmental accounting and auditing. Has acted as audit principal,manager,senior or staff for the following governmental clients: City ofDel Mar City of Encinitas Santa Fe Irrigation District Vallecitos Water District Big Bear Lake Water District Hesperia Fire Protection District Hesperia Water District City of Hesperia City ofBig Bear Lake Leucadia Wastewater District Dana Point Sanitary District Eastern Municipal Water District Hesperia Redevelopment Agency Capo Valley Water District Continuing Professional Education Recent Relevant Continuing Professional Education: Redevelopment Agency Workshop 10/08 Risk Based Auditing 8/08 The New Risk Assessment Standards 5108 Audits of Nonprofit Organizations 11/07 GFOAAnnual Government GAAP Update 11/07 Government Auditing Standards 8/07 GAAS Audits under the New Risk Assessment Standards 7/07 Planning the Single Audit -1/07 Statement on Auditing Standards 1107 Ethics 12/06 GASB 34 Update 12106 Intemal Controls and IT -8/06 GASB 40 Update -11/05 21 Otay Water District Position Audit Senior LEE PARRAVANO,CPA Audit Proposal-Resumes I I' It: Education Licensing University ofCalifomia Santa Barbara Bachelor ofArts in Economics,emphasis in Accounting,2002 Certified Public Accountant in Califomia since April 2005 Experience includes governmental auditing and financial reporting on cities,water districts, special districts,redevelopment agencies,jointpowerauthorities,nonprofit corporations and grants.Has worked on the following governmental clients: Range of Experience City ofHesperia City ofCoronado Santa Fe Irrigation District Leucadia Wastewater District Borrego Water District City ofDel Mar Valley-Wide Park and Recreation District City ofBig Bear Lake City ofEncinitas City ofTemecula IIII [ fI!; Continuing Professional Education Recent Relevant Continuing Professional Education: Audits ofNonpublic Organizations 1/08 The New Risk Assessment Standards 1/08 Fund Accounting 8/07 GAAS Audits under the New Risk Assessment Standards 7/07 StaffTraining for Accounting and Auditing 7/07 Financial Accounting Standards 5/07 Statement on Auditing Standards 104-111 Update 1/07 Internal Controls and IT -8/06 GASB Update -8/06 Preparing Govemmental Financial Statements -12/05 Guide to Audits ofLocal Governments -12/05 GASB 40 Update -II/OS GASB Update -8/05 Professional Ethics for CPA's -9/04 SAS 99 Update -In House 6/04 2004 Govemmental Update 7/04 GASB 34 Review &Update -7/04 22 Otay Water District Audit Proposal-Quality Review ATTACHMENT III RESULTS OF OUTSIDE QUALITY REVIEW Otay Water District HEIDENREICH &HEIDENREICH CERTIFIED PUBLIC ACCOUNTANTS· 12020 S.Warner-Elliot Loop #121 PhoenIx,p;z B5044·2700 (480)70406301 rax 785-4619 January 13,2006 To the Owners Diehl,Evans and Company,LLP sheldenrelch@all.net 15545 Bear Valloy Rd.#B Hesperia,CA92345 (760)94B·2899 fax 948·7712 We have reviewed the system of quality control for the accounting and auditing practice ofDiehl, Evans and Company,LLP (the firm)in effect for the year ended September 30,2005.A system of quality control encompasses the firm's organizational structure,the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards.The elements ofquality control are described In the Statements on Quality Control Standards issued by the American Institute of CPAs (AICPA).The firm iSTesponsible for designing a system of qualilyconlrol and complying with it to provide the firm reasonable assurance of conforming wah professional standards in all material respects.Our responsIbility Is to express an opinion on the design of the system of quality control and the firm's compliance wiLh its system ofquality control based on ourreview. Our review was conducled in accordance with standards established by the Peer Review Board of the AICPA.During our review,we read required representatio"ns from the firm,inlerviewed firm personnel and obtained an understanding of the nature of the firm's accounting and audiUng practice,and the design of the firm's system ofquality control sufficient to assess the risks implicit in ils practice.Based on our assessments,we selected engagements and administrative files to lest for conformity with professional standards and compliance with the firm's system of quality control.The engagements selecled represented a reasonable cross-section ofthe firm's accounting and auditing practice with emphasis on higheHisk engagements.The engagements selected included among others,audits of Employee Benefit Plans and engagements performed under Government Audiling Standards.Prior 10 concluding the review,we reassessed the adequacy of the scope of the peerreview procedures and mel with firm management to discuss the results of our review.We believe that lI,e procedures we performed provide a reasonable basis for ouropinion. In performing our review,we obtained an understanding of the system of quality control for the firm's accounting and auditing practice.In addition,we tested compliance wllh the firm's qual1ly control policies and procedures to the extent we considered appropriale.These tests covered the application of Ihe firm's policies and procedures on selected engagements.Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system of ql,.Jality control or all instances of noncompliance wilh il.There are inh,erenllfmitations in the effectiveness of anysystem ofquality control and therefore noncompliance wilh the system of quality control mayoccur and not be detected.Projection of anyevaluation of a system ofquality control to future periods is subject to the risk tllat the system of quality control may become inadequate because ofchanges in conditions,or because the degree of compliance wIth the policies or procedures may deteriorate. In our opinion,the system of quality control for the accounting and auditing practice of Diehl, Evans and Company,LLP in effect for the year ended September30,2005,has been designed to meet the reqUirements of the quality control standards for an accounting and auditing practlce established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance·ofconforming with professional standards. As is customary in a system review,we have issued a leiter under this date that sets forth comments lhat were not considered 10 be of sufficient significance to affect the opinion expressed in this report. Heidenreich &Heidenreich Certified Public Accountants Otay Water District HEIDENREICH &HEIDENREICH CERTIFIED PUBLIC ACCOUNTANTS 120205.Warner-Elliot Loop#121 Phoenilt:,AZ.85044-2700 (480)704-6301 fax 785-4619 January 13,2006 To the Owners Diehl,Evans and Company,LLP sheldBnrelch@all.net 15545 BearValley Rd.liB Hesperia,CA 92345 (760)948-2899 fal(948·7712 ! We have reviewed the accounting and auditing practice of DIehl,Evans and Company,LLP for the year ended September 30,2005,and have issued our reportlhereon dated January 13,2006. That report should be read in conjunction with the comment in this letter,which was considered in defermining our opinion.The maHer described below was not considered to be of sufficient significance to affect tile opinion expressed in that report. Comment·The firm has established policies for audit documentation.but has not developed specific gUidance 10 ensure Ihat certain procedures are documented in full as required by professional standards.As a result,we noted that Ihe firm's documentation was incomplete with respect 10 the general audit program on one audit and the program for benefit payments/participant accounts on the audit of an Employee Benefit Plan,The workpapers did contain sufficient documentation to support the audit opinion. Recommendation -The firm should revise its policies and.procedures relating to performing audits to include specific guidance for the documentation required by professional standards. Heidenreich &Heidenreich Certjfied Public Accountants OTAY WATER DISTRICT COST PROPOSAL FOR THE YEAR ENDING JUNE 30,2009 ~DIEHL,EVANS 8;[COMPANY,LLP~CERTIFIED PUBLIC ACCOUNTANTS &:CONSULTANTS IIiI APARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS 2965 ROOSEVELT STREET CARLSBAD,CALIFORNIA 92008·2389 (760)729-2343 •FAX (760)729-2234 www.diehlevans.com Otay Water District Joseph R.Beachem 2554 Sweetwater Springs Boulevard Spring Valley,CA 91978-2096 Dear Mr.Beachem: January 21,2009 ·PHILIP H.HOLTKAMP,CPA +THOMAS M.PERLOWSKI,CPA "HARVEY J.SCHROEDER,CPA KENNETII R.AMES,CPA ·WIT..UAM C.PENTZ,CPA fo.1ICHAEL R.LUDIN,CPA CRAIG W.SPRAKER,CPA NITIN P.PATEL,CPA ROBERTJ.CALLANAN,CPA •APROFESSIONAL CORPORATION Thank you for allowing us the opportunity to present ourcost proposal to the Otay Water District.We are pleased to present our proposal to serve as independent auditors for the District.We have prepared this cost proposal in accordance with the guidelines discussed in your request for proposal. Our goal,as outlined in our technical proposal,is to provide the District with the highest quality of service. Additionally,our goal is to maintain a close,personal relationship with you and your staff,one which is a year-round working relationship.Our Carlsbad office is fully staffed and conveniently located to meet your needs.You should feel comfortable in calling on us for advice at any time.We will always be available should you require ourservices. We respectfully request that we be selected as the independent auditors for the Otay Water District for the year ending June 30,2009.Our all-inclusive maximum price for the year ending June 30,2009 is $33,000.We understand and accept that reimbursement for travel,lodging and subsistence are at the prevailing District rates for its employees. Progress payments will be billed on the basis ofpro-rated auditwork completed during the course ofthe engagement. We thank the Otay Water District for the opportunity to present our proposal.Please feel free to contact Harvey J. Schroeder,CPA,engagement partner or David B.Forman,CPA,engagement principal at (760)729-2343 ifyou have any questions.This proposal constitutes a firm and irrevocable offer until April 26,2009.I am authorized to represent our firm,empowered to submit this bid,and authorized to sign a contract with the Otay Water District. Very truly yours, DIEHL,EVANS &COMPANY,LLP By:~r.0Z~ Harvey ~Schroeder,CPA Engagement Partner -1- OTHER OFFICES AT:613 W.VALLEY PARKWAY,SUITE 330 ESCONDIDO,CALIFORNIA 92025·2598 (760)741·3141.FAX (760)741-9890 5CORPORATE PARK,SUITE 100 IRVINE,CALIFORNIA 92606·5165 (949)-399-0600 •FAX (949)399-0610 OTAY WATER DISTRICT Schedule of Proposed Audit Fees COST PROPOSAL Service Fiscal Year Ended June 30,2009 28,000 3,500 Financial Statement Audit and CAFR:$ Single Audit: State ControIler's Annual Report of Financial Transactions 1,500 Total ",$~~~3""3",0",0",,,0 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUNE 30,2009 FINANCIAL STATEMENTS ALL-INCLUSIVE MAXIMUM PRICE Standard Quoted Hours Hourly Hours Rates Rates Total Partners 30 $225 $170 $5,100 Technical Reviews/Principals 45 185 140 6,300 Managers 50 130 100 5,000 Supervisory Staff 80 115 90 7,200 Staff Accountants 150 75 60 9,000 Subtotal 355 32,600 Out-of-Pocket Expenses: Meals and lodging 150 Transportation 250 Total all-inclusive maximum price for 2009 audit $33,000 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS AND CAFR Standard Quoted Hours Hourly Hours Rates Rates Total Partners 24 $225 $170 $4,080 Technical Reviews/Principals 40 185 140 5,600 Managers 43 130 100 4,300 Supervisory Staff 70 115 90 6,300 Staff Accountants 122 75 60 7,320 Subtotal 299 27,600 Out-of-Pocket Expenses: Meals and lodging Transportation Total for 2009 Financial Statements and CAFR 2 $ 150.00 250.00 28,000 OTAY WATER DISTRICT COST PROPOSAL SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUNE 30,2009 FINANCIAL STATEMENTS SUPPORTING SCHEDULE FOR SINGLE AUDIT REPORT Standard Quoted Hours Hourly Hours Rates Rates Total Partners 4 $225 $170 $680 Technical Reviews/Principals 5 185 140 700 Managers 5 130 100 500 Supervisory Staff 6 115 90 540 Staff Accountants 18 75 60 1,080 Subtotal 38 3,500 Out-of-Pocket Expenses: Transportation Total Price for 2009 Single Audit:$3,500 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUNE 30,2009 FINANCIAL STATEMENTS SUPPORTING SCHEDULE FOR STATE CONTROLLER'S REPORT Standard Quoted Hours Hourly Hours Rates Rates Total Partners 2 $225 $170 $340 Technical Reviews/Principals 0 185 140 Managers 2 130 100 200 Supervisory Staff 4 115 90 360 Staff Accountants 10 75 60 600 Subtotal 18 1,500 Out-of-Pocket Expenses: Meals and lodging Transportation Total Price for 2009 State Controller's Report:$1,500 3 ATTACHMENT C Ortega &l(onrad,LLP C'ertified Public j,!U::OfJ/it:anl::.)' Otay Water District Technical Proposal to Provide Audit Services For the Fiscal Year Ended June 30,2009 Firm: Address: Telephone Number: Date: Contact: Ortega &Konrad,LLP Certified Public Accountants 5151 Shoreham Place,Suite 100 San Diego,CA 92122 (858)623-2786 January 12,2009 Mario U Ortega .. TABLE OFCONTENTS Transmittal Letter Page 1-2 Firm Information Page 3 Firm Qualifications and Experience Page 4 Partner,Supervisory &Staff Qualifications &Experience Page 5 Resumes ofAudit Team Page 6-8 Government Engagements Page 9-10 Audit Approach Page 11-14 Proposer Guarantees Page IS Proposer Warranties Page 16 Formation ofContract;Additional Contract Provisions Page 17-18 External Quality Control Review Page 19-20 Ortega &Konrad,LLP,LLP Ortega &Konrad,LLP Certified Public Accountants TRANSMITTAL LETTER January 29,2009 Otay Water District Joseph R Beachem 2554 Sweetwater Springs Boulevard Spring Valley,California 5151 Shoreham Place,Suite 100 San Diego,CA 92108 Ortega &Konrad,LLP is pleased to present this proposal to provide audit services for Otay Water District,for the fiscal year ending June 30,2009.We will demonstrate in this proposal that we have the experience and qualifications to provide these services in an efficient and cost effective manner.Our references and our past experience with water districts will affirm our reputation for on-time,on-budget delivery. Mario Ortega,CPA will be the partner in charge of the engagement.Mario has twenty-three years of public accounting experience.Louis Almeida,who will be the field in-charge,will assist him.Louis has twenty-one years of auditing experience.All audit staff assigned to your engagement are auditors trained and experienced in auditing water districts similar to Otay Water District.The manner in which our staff provides our services is as important to us as the services we provide. We believe Ortega &Konrad,LLP is the best choice for Otay Water District.Our firm specializes in providing auditing services to water districts in the County of San Diego.We are committed to timely,accurate,and innovative service,which is delivered in a professional manner. The Audit Approach section of this proposal will prove we have recent experience with the audit requirements of Otay Water District,understand the environment in which it operates,and have developed a proven work plan that will achieve the scope ofthe engagement.The work plan is designed to perform the audit efficiently,without sacrificing quality,and result in us committing to start and complete the audit within the deadlines published in the request for proposal. Ortega &Konrad,LLP 1 This proposal is a firm and irrevocable offer until April 26,2009. We sincerely appreciate the opportunity to propose on this engagement and trust this proposal is responsive to your requirements. Sincerely. Mario G.Ortega,CPA Partner Ortega &Konrad,LLP Certified Public Accountants mortega@ortegacpa.net Ortega &Konrad,LLP 2 FIRM INFORMATION In this section of our proposal,we demonstrate that Ortega &Konrad,LLP has the qualifications,competence,and capacity to provide audit services to Otay Water District. Independence:Ortega &Konrad,LLP is independent of Otay Water District under the AICPA standards in its Code of Professional Conduct and also as defined by the Government Auditing Standards as issued by the U.S.General Accounting Office. Ortega &Konrad,LLP has had no previous professional relationships with Otay Water District over the past five years. Ortega &Konrad,LLP will provide Otay Water District written notice of any professional relationships entered into during the period of this agreement. License to Practice:All partners are properly licensed to practice in the State of California.The firm is licensed to practice public accounting in the State of California. Professional Education:All partners and team members meet the continuing education requirements contained in the Government Auditing Standards,published by the U.S.General Accounting Office. Ortega &Konrad,LLP 3 ·FIRM QUALIFICATIONS &EXPERIENCE Firm Background.Ortega &Konrad,LLP is an accounting firm founded in 2004 by Mario Ortega and Gene Konrad.The firm's two principals have over 30 years of collective auditing experience and 16 years ofproviding auditing services to local water districts. Ortega &Konrad,LLP is located in San Diego,California and,in addition to its two principals, the firm has one full-time and one part-time staff available to assist in the firms audit engagements. We are knowledgeable with applicable federal regulations and standards for audits of not-for- profit organizations,governmental organizations,programs,activities,and functions (Yellow Book)published by the Comptroller General of the United States in order to perform audits of this nature. Team members Experience.Each of our auditors has over fifteen years ofexperience in auditing municipalities or special districts such as Otay Water District Staffing.We anticipate staffing the engagement field work with one partner and one staff member. Quality Control.Ortega &Konrad,LLP received an unqualified review of its most recent external quality control review.The quality control review included a review of government agencies and is enclosed for your review. Disciplinary action.No State or professional disciplinary action has been taken against Ortega &Konrad,LLP within the past three years and none is currently pending.In addition the firm has not had any federal or state desk reviews or field reviews of our audits during the past three years. Ortega &Konrad,LLP 4 ",,'.'.'. PARTNER,SUPERVISORY.&STAFF QUALIFICATIONS & EXPERIENCE· All members assigned to this engagement are proven professionals in conducting audits of governmental entities as shown on the resumes that follow.The one full time and one paIt-time staff members we have available to us are seasoned auditors. Mario Ortega will be the overall partner in charge assigned to your engagement.Mario has over twenty-three years of experience in public accounting and has been substantially involved in auditing water districts and other governmental and nonprofit entities.Mr.Oltega was instrumental in assisting the District and two other water districts in complying with GASB 34 and has assisted other governmental agencies in complying with the CAFR reporting requirements.In addition,Mr. Ortega has been involved in assisting in the process ofissuing water revenue bonds. .Mr.Luis Almeida,will be assisting Mr.Ortega on this engagement.Louis has over twenty-one years in public and private accounting experience;eleven of those years were with two finns specializing in governmental audits;Diehl Evans &Company and Grice Lund and Tarkington.In addition to Mr.Almeida's experience in auditing,Mr.Almeida was Vice President of GLT Business Solutions,Inc.,Grice Lund and Tarkington's computer consulting division. Mr.Gene Konrad will be the concUlTing partner on the engagement.Mr.Konrad has experience in providing both audit and tax services in various industries including water districts and organizations subject to the requirements ofOMB Circular A-l33. It is difficult for any firm to assure the continuity of members assigned to their engagement. However,since all of our staff,including our part-time personnel,are seasoned professionals who have settled into their careers,the likelihood ofpersonnel turnover is much less than most traditional accounting filliS.In addition,Mr.Ortega assures you that as principal ofthe firm,he will be onsite on a full time basis to assure continuity. i II Ortega &Konrad,LLP 5 RESUMES OFAUDIT TEAM -MARIO ORTEGA ENGAGEMENT RESPOSIBILITY Mr.Ortega will serve as your Audit Partner.He will be responsible for the overall supervision of the audit.This responsibility includes insuring professional performance of the audit and timely delivery of the final product. EXPERIENCE Twenty-three years of public accounting experience with a concentration in financial and compliance audits for public agencies including 45 annual audits ofthe following water districts: ~Otay Water District (7 years) ~Sweetwater Authority (9 years) ~Padre Dam Municipal Water District (4 years) ~Ramona Municipal Water District (2 years) ~South Bay liTigation District (IS years) ~Descanso Community Water District (7 years) ~Imperial Irrigation District (2 years) PROFESSIONAL ACTIVITIES EDUCATION American Institute ofCertified Public Accountants California Society ofCertified Public Accountants California Society ofMunicipal Finance Officers University of San Diego Bachelors ofBusiness Administration in Accounting National University Masters of Science in Taxation Eighty hours ofcontinuing professional education every two years,including twenty-four hours in courses directly related to the governmental environment and to government auditing. Ortega &Konrad,LLP 6 RESlJtv1ESOFAubrrOrEAM-GENE KONRAD ENGAGEMENT RESPOSIBILITY Gene Konrad will be the engagement Quality Review Partner.He will be responsible for the independent and quality control review of the audit. This responsibility includes insuring all professional standards and performance of the audit have been met. EXPERIENCE Thirty years of experience in public accounting.Experience with financial and compliance audits,accounting and advisory services for water agencies including 42 annual audits ofthe following water districts: ~Sweetwater Authority (9 years) ~Padre Dam Municipal Water District (4 years) ~Otay Water District (3 years) ~Ramona Municipal Water District (4 years) ~South Bay Irrigation District (9 years) ~Descanso Community Water District (6 years) I PROFESSIONAL ACTIVITIES EDUCATION American Institute ofCertified Public Accountants California Society ofCeltified Public Accountants California Society Litigation Section Member Former Chailwan ofthe University Community Plam1ing Group (9 years) Involved extensively with development of the City ofSan Diego's Wastewater Reclamation Plant at Miramar and other MWWD projects Committee Member -City ofSan Diego Select Committee on Govemment Efficiency &Fiscal Reform -Appointed Position University ofHawaii Degree in Business Administration Eighty hours ofcontinuing professional education every two years,including twenty-four hours in courses directly related to the govermnental enviromnent and to govermnent auditing. Ortega &Konrad,LLP 7 RESUMES OF AUDIT TEAM ...LOUISALMEIDA ENGAGEMENT RESPOSIBILITY Louis Almeida will be your in-charge auditor.He will work directly with the engagement partner in establishing audit objectives and overall scope, as well as approving the selection of audit procedures.He will monitor the engagement's progress and ensure that the audit team receives adequate supervision and direction.He,along with the engagement partner will consult with you to assure that all your questions are answered. EXPERIENCE Twenty-one years of public accounting experience with a concentration in financial and compliance audits for public agencies including audits of the following: }-South Bay Irrigation District }-Sweetwater Authority }-Descanso Community Water District }-Eastern Municipal Water District }-Dana Point Sanitary District }-Imperial liTigation District }-Seeley County Water District }-City ofCoachella }-City ofCoronado }-City of Santa Paula }-City of El Centro }-County ofImperial EDUCATION University of San Diego Bachelors of Business Administration in Accounting Eighty hours ofcontinuing professional education every two years,including twenty-four hours in courses directly related to the governmental environment and to government auditing. Ortega &Konrad,LLP 8 GOVERNMENT ENGAGEMENTS References.We have furnished within this proposal the names,addresses and telephone numbers of persons,firms,and agencies for whom similar audits have been conducted by Mario Ortega & Gene Konrad. List ofengagements.In addition to Otay Water District,the following is a list of organizations and agencies to which Mario Ortega &Gene Konrad have provided auditing and consulting servIces: Sweetwater Authority Debra Farrow,Director ofFinance (619)420-1413 Engagement Partner:Gene Konrad (1990-2003),Mario Ortega (2004-2005) Engagement Manager:Mario Ortega (1990-2003) Annual Hours:185 Dates:1990-2003 (13 years with previous firm) 2004-2005 (2 years as Ortega &Konrad,LLP) Scope ofwork: I.Annual financial statement audit 2.Single audit offederal funding when required 3.Preparation ofState Controllers Report 4.Audit of6 year forecast for 1994,2002 and 2005 official statements 5.Agreed upon procedures for 1994,2002 and 2005 underwriters "comfOlt letter" South Bay Irrigation District Mark Rogers,General Manager (619)420-1413 Engagement Partner:Gene Konrad (1990-2003),Mario Ortega (2004-2005) Engagement Manager:Mario Ortega (1990-2003) Annual Hours:55 Dates:1990-2003 (13 years with previous firm) 2004-2005 (2 years as Ortega &Konrad,LLP) Scope ofwork: 1.Annual financial statement audit 2.Preparation of State Controllers Report. Ortega &Konrad,LLP 9 GOVERNMENT ENCiAGEMENTS (Continued) Padre Dam Municipal Water District Douglas Wilson,General Manager (619)258-4617 Engagement Partner:Gene Konrad Engagement Manager:Mario Ortega Annual Hours:180 Dates:1999-2002 (4 years) Scope of work:Aimual financial statement audit Descanso Community Water District Brian Bruce,General Manager (619)409-7754 Engagement Partner:Gene Konrad (2002-2003),Mario Ortega (2005-2008) Engagement Manager:Mario Ortega (2002-2003) Annual Hours:60 Dates:2000-2003 (3 years) 2005 (I year as Ortega &Konrad,LLP) Scope ofwork: I.Annual financial statement audit 2.Preparation of State Controllers Report Ortega &Konrad.LLP 10 AUDIT APPROACH Approach:The audit procedures for this engagement are presented in the form of a comprehensive work plan,broken down by major audit activity.We believe a well thought-out work plan is essential to performing a thorough,yet cost effective audit.We have developed standard audit programs for Water District audits,which we will tailor as required to meet the unique needs of Otay Water District. Planning:A properly planned audit provides for an effective and efficient audit.Not all water districts are identical,and it is important that we review the District's financial statements and discuss the current year's results with District personnel in order to determine our best approach. There are some firms and practitioners that believe that the planning process is unproductive time and do only what is necessary to satisfy auditing standards.At Ortega &Konrad,LLP we believe that the planning process is a great tool for identifying key audit areas to concentrate our efforts.During our planning,all audit team members are present and participate in the process. As a result of this team participation,all members have a better understanding of the overall approach and know exactly what they are responsible for completing. Internal Controls:Generally Accepted Auditing Standards (GAAS)requires that we obtain an understanding of accounting internal controls.The District has invested a substantial amount of its resources in hiring very capable accounting and administrative personnel who have created accounting and administrative controls designed to assure accuracy and credibility of its rep0l1ing.At Ortega &Konrad,LLP,we believe that an in-depth understanding ofthe District's controls and testing of these controls for effectiveness lends to the credibility of the financial statements. Ortega &Konrad,LLP II AUDIT APPROACH (Continued) Internal Controls -Continued:We also believe that this extra effort provides us a better understanding of the financial data we are reviewing and an opportunity to provide the District useful feedback. In obtaining an understanding of the District's controls,we will also obtain an understanding of its operations.Our process of understanding will include interviewing District personnel from various departments (i.e.Engineering,Operations,Customer Service,etc.).Based on our experience we have found that there is much to be leamed about the financial statements outside of the Finance Department. Statistical Sampling:The use of statistical sampling will be considered in tests of controls and for certain substantive tests.However,based on our vast years of experience,we have not found statistical sampling the most efficient effective approach in auditing water districts.The use of statistical sampling in this audit would be unlikely. Sample Size:Sample sizes are determined during the audit process and can vary depending on risk, reliable or unreliable internal controls,and other analytical techniques available. Analytical Procedures.We anticipate utilizing analytical procedures extensively during our examination.This will include comparing actual results to budget as well as reviewing board minutes and interviewing district personnel from various departments to corroborate evidence gathered during the examination. Determination ofLaws &Regulations to be Tested.Auditing Standards requires us to design an audit that provides reasonable assurances of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a direct and material effect on the determination of financial statement amounts.If specific information comes to our attention that provides evidence concerning the existence of possible noncompliance that could have a material indirect effect on the financial statements,we are required to apply audit procedures specifically directed to ascertaining whether that noncompliance has occurred. In order to determine ifthere are any material compliance issues that need to be addressed,we will request copies of all grant agreements to review.In addition,inquiries will be made to determine if there are any contracts that contain covenants that if not followed,could have a material impact on the financial statements. Ortega &Konrad,LLP 12 ·AUDit APPROACH (Continued) Compliance Sample Testing.If after reviewing and documenting the District's internal controls, we determine that test of controls are in order,our testing could range from a system walk- through to an actual test of transactions.Ifwe decide to perform a test of transaction,our testing would be limited to approximately twenty-five transactions in the system being tested. If the District is subject to the provisions of OMB 133,(i.e.the Single Audit Act),we will be required to test for compliance and design our sample to achieve a low level risk ofcontrol.This means that we would be required to obtain a sample of forty items with zero exceptions in our sample.Keep in mind that we are only required to design our sample to achieve a low-level risk; that does not mean we need to achieve such level.In our experience with Single Audits and water districts,the area usually subject to this testing is work-in process disbursements. Potential Audit Problems.We do not anticipate any audit problems during our engagement. However,we believe that if an audit is well planned,any unanticipated problems are quickly identified and can be addressed with the proper level ofDistrict personnel. Ortega &Konrad,LLP 13 ..-. .AUDIT APPROACH(Continued) Assignment ofTeam Members andHours:Ortega &Konrad,LLP will be utilizing a growing approach in auditing which emphasis the use of strong analytical techniques that concentrates on comparing the District's financial results to events that have occurred and decisions that have been made by District staff and board members.We will be looking for a direct correlation between events and decisions and financial results. Our proposed segmentation ofthe audit engagement,level of team members and number of hours is as follows: Hours Partner Member Total ~Engagement Planning Acceptance evaluation Determination ofaudit Objectives and key dates Preliminary internal control Evaluation Development of Overall audit strategy ~Tests ofcontrols Design ofaudit Audit fieldwork, Evaluate results and draft reports ~Final review procedures ~Presentation to Board Total Hours Ortega &Konrad,LLP 14 52 11 3 80 5 75 80 19 127 11 3 160 14 PROPOSER GUARANTEES The Proposer certifies it can and will provide and make available,at minimum,all services set forth in Section II,Nature of Services Required. Signature of Official:~~I9z-;;¢;; Name:Mario G.Ortega Title:Partner Firm:Ortega &Konrad,LLP Date:January 12,2009 Ortega &Konrad,LLP 15 PROPOSER WARRANTIES A.Proposer warrants that it is willing and able to comply with State of California laws with respect to foreign (non-state of California)corporations. B.Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount ofcoverage for the willful or negligent acts,or omissions of any officers,employees or agents thereof. C.Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the express prior written permission of Otay Water District. D.Proposer warrants that all information provided by it in connection with this submittal is true and accurate. Signature ofOfficial:~..uU C?;-:(;: Name:Mario G.Ortega Title:Partner Firm:Ortega &Konrad,LLP Date:January 12,2009 i Ortega &Konrad,LLP 16 FORMATION OF CONTRACT,' ADDITIONAL CONTRACT PROVISIONS I.This Request for Proposal (RFP),together with proposer's signed offer (Proposal)and the Otay Water District's written acceptance thereof,including any contract provisions approved by the parties pursuant to subsequent negotiations,if any,shall constitute a binding contract (collective,the "Contract").The Contract shall only be amended or modified annually,upon approval by the District of an updated Appendix E or pursuant to a written amendment signed by both parties. 2.Conflict of Interest a.Auditor has received and reviewed a copy ofthe District's Conflict of Interest Code (the "COl"),set forth under Division I,Chapter 5,Section 6 ofthe District's Code ofOrdinance.Auditor understands that,to the extent it (i)conducts research and arrives at conclusions concerning advice,recommendations or information independently from the District;and (ii)renders information,advice, recommendations or counsel to the District,it may be required to file a disclosure statement in accordance with the cal. b.No officer or employee ofthe District shall have any financial interest,direct or indirect,in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his or her financial interest or the financial interest of any corporation,partnership or association in which he or she has a financial interest ifsuch participation would be in violation ofany State statute or regulation. c.Auditor,its officers,managers,related entities,affiliates,business associates,and their respective relatives or living trusts or other similar entities or persons (each, a "Related Person")shall avoid any relationship with District or any contractor of District that constitutes or may constitute a conflict of interest in connection with services provided under this Agreement. d.Prior to entering into this Agreement and during the term,Auditor shall have a duty to disclose to the District any and all circumstances that pose an actual or potential conflict of interest. Ortega &Konrad,LLP 17 e.Auditor shall not obtain for itself or any Related Person any financial gain from the services other than as specified in this Agreement.Auditor represents that neither Auditor nor any Related Person has an existing financial interest and that neither will acquire any such interest,direct or indirect,that conflicts in any manner or degree with the performance ofservices required under this Agreement and that no person having any such interest shall be subcontracted in connection with this agreement,or employed by Auditor.Auditor shall not enter into this Agreement if such a conflict of interests exists at present. f.Ifan actual or potential conflict ofinterest issue arises,Auditor agrees to fully cooperate in any inquiry and to provide the District with all documents or other information reasonably necessary to enable the District to determine whether or not a conflict of interest existed or exists. g.Auditor shall not conduct or solicit any non-District business while on District property or time. h.Failure to comply with the provisions ofthis section shall constitute grounds for immediate termination of this Agreement,in addition to whatever other remedies the District may have. 3.The Contract shall be interpreted and enforced pursuant to the laws of the State of California,without regard to any conflict oflaws principles.Disputes which cannot be resolved by mutual agreement or by the terms and condition of this Contract shall be resolved by a court ofcompetent jurisdiction in the County of San Diego,State of California. Signature ofOfficial:~«;~ Name (typed):--'M"""ar'-!.io"'--"O"'r"'te"'g"'a _ Title:Partner Firm:Ortega &Konrad,LLP Date:January 20,2009 Ortega &Konrad,LLP 18 POWELL &SPAFFORD,LLP CERTIFIED PUBLIC ACCOUNTANTS Jessie C.Powell,CPA Patrick D.Spofford,CPA L~en,eJ b.!the CaMornia Boa..J of AccounlonCl! Memkr:A,,,eriwn In,litull'01CerlilieJ Public AC(OlJlllo"l. To the Partners Ortega &Konrad,LLP Certified Public Accountants We have reviewed the system ofquality control for the accounting and auditing practice ofOrtega &Konrad, LLP (the firm)in effect for the year ended November 30,2005.A system ofquality control encompasses the firm's organizational structure,the policies adopted and procedures established to provide it with reasonable assurance ofconforming with professional standards.The elements ofquality control are described in the Statements on Quality Control Standards issued by the American Institute ofCertified Public Accountants (AICPA).The firm is responsible for designing a system ofquality control and complying with it to provide the firm reasonable assurance of conforming with professional standards in all material respects.Our responsibility is to express an opinion on the design ofthe system ofquality control and the firm's compliance with its system ofquality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board ofthe AICPA. During our review,we read required rep~esentations from the firm,interviewed firm personnel,and obtained an understanding ofthe nature of the firm's accounting and auditing practice,and the design of the fum's system ofquality control sufficient to assess the risks implicit in its practice.Based on our assessments,we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control.The engagements selected represented a reasonable cross-section ofthe firm's accounting and auditing practice with emphasis on higher-risk engagements.The engagements selected included among others,engagements performed under Governmental Auditing Standards and Employee Benefit Plans under ERISA.Prior to concluding the review,we reassessed the adequacy of the scope ofthe peer review procedures and met with firm management to discuss the results of our review.We believe that the procedures we performed provide a reasonable basis for our opinion. In performing our review,we obtained an understanding of the system of quality control for the firm's accounting and auditing practice.In addition,we tested compliance with the tirm's quality control policies and procedures to the extent we considered appropriate.These tests covered the application ofthefirm's policies and procedures on selected engagements.Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system ofquality control or all instances ofnoncompliance with it. There are inherent limitations in the effectiveness ofany system ofquality controland therefore noncompliance with the system ofquality control may occur and not be detected.Projection ofany evaluation ofa system of quality control to future periods is subject to the risk that the system ofquality control may become inadequate because ofchanges in conditions,or because ofthe degree ofcompliance with the policies or procedures may deteriorate. 664 W.Bi,ch Courl •San Be,no,dino,CA 92410 •P.G.Box 8847 •Redland"CA 92375 Telephone 909-885-7721 •Fax 909-885-7541 19 In our opinion,the system ofquality control for the accounting and auditing practice ofOrtega&Konrad,LLP, in effect for the year ended November 30,2005,has been designed to meet the requirements ofthe quality control standards for an accounting and auditing pr~ctice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of complying with professional standards. As is customary in a system review,we have issued a letter under this date that sets forth comments that were not considered to be ofsufficient significance to affect the opinion expressed in this report. July 31,2006 20 Certified Public Accountants MASTER COPY Otay Water District Dollar Cost Proposal to Provide Audit Services For the Fiscal Year Ended June 30,2009 Firm: Address: Telephone Number: Date: Ortega &Konrad,LLP Certified Public Accountants 5151 Shoreham Place,Suite 100 San Diego,CA 92122 (858)623-2786 January 12,2009 Ortega &Konrad,LLP All Inclusive Maximum Proposed Fees Page I Schedule of Professional Fees and Expenses for the Audit of the June 30,2009 Financial Statements:General Purpose Financial Statements and CAFR Page 2 Schedule of Professional Fees and Expenses for the Audit ofthe June 30,2009 Financial Statements:Supporting Schedule for State Controller's Report Page 3 Schedule of Professional Fees and Expenses for the Audit ofthe June 30,2009 Financial Statements:Supporting Schedule for Single Audit Report Page 4 Rates for Additional Professional Services Page 5 .Manor ofPayment Page 5 Ortega &Konrad,LLP ALL INCLUSIVE MAXIMUM PROPOSED FEES The fees for our services are based on the actual time required by the individuals assigned to the engagement.Any out-of-pocket costs such as repOlt production,typing,postage,etc.are not included in our bid and reimbursement will not be requested.Our Firm's hourly rates vary according to the degree ofresponsibility involved and the experience level ofthe personnel assigned to your audit. Based on our estimates,the all-inclusive maximum price to perform an audit of the general purpose financial statements and CAFR is $19,200 for the fiscal year ending June 30,2009. We certify that Mario G.Oltega is a paltner of Oltega &Konrad,LLP and is authorized,pursuant our partnership agreement,to submit the bid and contract with Otay Water District. ORTEGA &KONRAD.LLP Mario G.Ortega ,~i I tII Ortega &Konrad,LLP 1 SCHEDULE OFPROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE JUNE 30,2009 FINANCIAL STATEMENTS: GENERAL PURPOSE FINANCIAL STATEMENTS &CAFR Standard Hours Hourly Rates Quoted Hourly Rates Total Partners 80 $200 $140 $11,200 Managers 0 N/A N/A $ 0 Supervisory Staff 0 N/A N/A $0 Staff 80 $150 $100 $8,000 Other (specify)$ 0 Subtotal 160 $19,200 Out-of-Pocket expenses:$ 0 Meals,lodging &transportation $ 0 Total all-inclusive cost For the June 30,2009 audit $19,200 Ortega &Konrad,LLP will not being incurring any travel costs and accordingly is not requesting reimbursement. Ortega &Konrad,LLP 2 SCHEDULE OFPROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THEJUNE 30,2009 FINANCIAL STATEMENTS: SUPPORTING SCHEDULES FOR STATE CONTROLLER'S REPORT Hours Standard Hourly Rates Quoted Hourly Rates Total Partners 8 $200 $140 $1,120 Managers 0 N/A N/A $ 0 Supervisory Staff 0 N/A N/A $ 0 Staff 0 N/A N/A $ 0 Other (specify)Bid Discount $(320) Subtotal 8 $800 Out-of-Pocket expenses $ 0 Transportation Other Total price for State Controllers Report $800 Ortega &Konrad,LLP 3 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE A UDIT OF THE JUNE 30,2009 FINANCIAL STATEMENTS: SUPPORTING SCHEDULE FOR SINGLE A UDIT REPORT Partners Managers Supervisory Staff Staff Hours 6 o o 20 Standard Hourly Rates $200 N/A N/A $150 Quoted Hourly Rates $140 N/A N/A $100 $ $ $ $ Total 840 o o 2,000 Other (specify)$0 Subtotal 26 $2,840 Out-of-Pocket expenses $0 Transportation Other Total for Single Audit Report $2,840 Ortega &Konrad,LLP 4 RATES FOR ADDITIONAL PROFESSIONAL SERVICES Should the District request Oliega &Konrad,LLP to render services not specified in the Request for Proposal,such additional work would be subject to a separate engagement letter and a "not to exceed fee"for such work would be negotiated at the hourly rates set forth in the All Inclusive Cost Section ofthis Proposal. MANNER OF PAYMENT Fees will be billed monthly as the work progresses,based upon hours work completed and hourly rates in accordance with our cost proposal.Interim billing will cover a period ofnot less than a calendar month and total billing will not exceed the all-inclusive cost. Ortega &Konrad,LLP 5 ATTACHMENT 0 1 Int Ctrl OrtelZa &Conrad 2 Weakness 3 CAFR OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS INTERVIEWS 456 Actg Issues Water Exp Timing 7 Staff 8 Add Value Interview Total RFP TOTAL GRAND TOTAL Joe 5.0 5.0 4.0 5.0 5.0 5.0 4.5 5.0 38.5 Jim 4.0 5.0 4.0 5.0 4.0 5.0 5.0 4.0 36.0 Steve 4.0 5.0 4.0 4.0 4.0 5.0 5.0 4.0 35.0 13.0 15.0 12.0 14.0 13.0 15.0 14.5 13.0 109.5 223.0 I 332.5 I AKT Joe 4.0 5.0 4.0 4.0 5.0 4.0 5.0 5.0 36.0 Jim 5.0 5.0 4.0 5.0 5.0 5.0 4.0 5.0 38.0 Steve 4.0 5.0 3.0 4.0 5.0 4.0 4.0 5.0 34.0 13.0 15.0 11.0 13.0 15.0 13.0 13.0 15.0 108.0 209.0 I 317.0 I Caooncc,&Larson Joe 4.0 4.0 3.0 5.0 4.0 4.5 4.0 5.0 33.5 Jim 5.0 4.0 3.0 4.0 4.0 5.0 5.0 5.0 35.0 Steve 4.0 5.0 3.0 4.0 3.0 4.0 4.0 4.0 31.0 13.0 13.0 9.0 13.0 11.0 13.5 13.0 14.0 99.5 220.0 I 319.5 I D'ehl Evans, Joe 5.0 5.0 5.0 5.0 4.0 4.5 4.0 5.0 37.5 Jim 5.0 4.0 5.0 5.0 4.0 5.0 4.0 5.0 37.0 Steve 4.0 4.0 5.0 5.0 5.0 4.0 4.0 5.0 36.0 14.0 13.0 15.0 15.0 13.0 13.5 12.0 15.0 110.5 210.0 I 320.5 I TOTALS OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS RATINGS SUMMARY FOR THE YEAR ENDING JUNE 30,2009 x2 x2 Info x2 x2 x2 Statement of License to Firm Staff PriorOWD Similar Audit Issues I Firm Name Independence Practice Quais Quais Engagements Audits Approach Problems Cost Totals 31,000 19 17 15 15 12 AKT 20 20 38 34 No 30 30 13 24 209 24,000 20 14 14 17 16 Caporicci &Larson 20 20 40 28 No 28 34 18 32 220 24,000 14 14 14 12 16 Charles Z.Fedak 12 20 28 28 No 28 24 9 32 181 33,000 18 17 14 18 12 Diehl Evans 20 20 36 34 No 28 36 12 24 210 15,582 13 9 8 10 20 Hosaka Nagel 12 12 26 18 No 16 20 11 40 155 27,250 16 14 13 16 16 lance 5011 &lunghard 20 20 32 28 No 26 32 12 32 202 35,600 17 17 16 17 12 Mayer Hoffman McCann 20 14 34 34 No 32 34 12 24 204 22,800 17 18 19 17 16 Ortega &Konrad 20 17 34 36 No 38 34 12 32 223 Joe Beachem OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS RATINGS SUMMARY FOR THE YEAR ENDING JUNE 30,2009 x2 x2 Info x2 x2 x2 Statement of License to Firm Staff PriorOWD Similar Audit Issues/ Firm Name Independence Practice Quais Quais Engagements Audits Approach Problems Cost Totals 31,000 5 3 3 3 3 AKT 5 5 10 6 6 6 3 6 47 24,000 5 2 2 5 4 Caporicci &Larson 5 5 10 4 4 10 5 8 51 24,000 3 2 2 3 4 Charles Z.Fedak 3 5 6 4 4 6 2 8 38 33,000 4 4 4 5 3 Diehl Evans 5 5 8 8 8 10 3 6 53 15,582 3 0 0 3 5 Hosaka Nagel 3 3 6 0 0 6 3 10 31 27,250 4 4 3 4 4 Lance Soli &Lunghard 5 5 8 8 6 8 3 8 51 35,600 4 4 4 5 3 Mayer Hoffman McCann 5 3 8 8 8 10 3 6 51 22,800 4 5 5 4 4 Ortega &Konrad 5 4 8 10 10 8 3 8 56 Scoring:1 -5,with 5 =highest Steve Dobrawa OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS RATINGS SUMMARY FOR THE YEAR ENDING JUNE 30,2009 x2 x2 Info x2 x2 x2 Statement of License to Firm Staff PriorOWD Similar Audit Issues I Firm Name Independence Practice Quais Quais Engagements Audits Approach Problems Cost Totals 31,000 5 4 3 3 3 AKT 5 5 10 8 6 6 2 6 48 24,000 5 4 4 4 4 Caporicci &Larson 5 5 10 8 8 8 3 8 55 24,000 4 4 5 3 4 Charles Z.Fedak 3 5 8 8 10 6 1 8 49 33,000 5 4 4 4 3 Diehl Evans 5 5 10 8 8 8 2 6 52 15,582 4 3 2 2 5 Hosaka Nagel 3 3 8 6 4 4 2 10 40 27,250 4 3 4 3 4 Lance 5011 &Lunghard 5 5 8 6 8 6 2 8 48 35,600 4 4 5 3 3 Mayer Hoffman McCann 5 3 8 8 10 6 2 6 48 22,800 5 4 5 4 4 Ortega &Konrad 5 4 10 8 10 8 2 8 55 Scoring:1 -5,with 5 =highest --~----~-~------~_. Marissa Dychitan OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS RATINGS SUMMARY FOR THE YEAR ENDING JUNE 30,2009 x2 x2 Info x2 x2 x2 Statement of License to Firm Staff PriorOWD Similar Audit Issues/ Firm Name Independence Practice Quais Quais Engagements Audits Approach Problems Cost Totals 31,000 4 5 4 4 3 AKT 5 5 8 10 8 8 4 6 54 24,000 5 4 3 4 4 Caporicc;&Larson 5 5 10 8 6 8 5 8 55 24,000 3 4 3 3 4 Charles Z.Fedak 3 5 6 8 6 6 3 8 45 33,000 4 4 3 4 3 Diehl Evans 5 5 8 8 6 8 3 6 49 15,582 3 3 3 3 5 Hosaka Nagel 3 3 6 6 6 6 3 10 43 27,250 3 3 3 4 4 Lance Soli &Lunghard 5 5 6 6 6 8 3 8 47 35,600 4 4 3 4 3 Mayer Hoffman McCann 5 4 8 8 6 8 4 6 49 22,800 3 4 4 4 4 Ortega &Konrad 5 4 6 8 8 8 3 8 50 Scoring:1 -5,with 5 =highest Jim Cudlip OTAY WATER DISTRICT AUDIT PROPOSAL ANALYSIS RATINGS SUMMARY FOR THE YEAR ENDING JUNE 30,2009 x2 x2 Info x2 x2 x2 Statement of License to Firm Staff PriorOWD Similar Audit Issues/ Firm Name Independence Practice Quais Quais Engagements Audits Approach Problems Cost Totals 31,000 5 5 5 5 3 AKT 5 5 10 10 10 10 4 6 60 24,000 5 4 5 4 4 Caporicci &Larson 5 5 10 8 10 8 5 8 59 24,000 4 4 4 3 4 Charles Z.Fedak 3 5 8 8 8 6 3 8 49 33,000 5 5 3 5 3 Diehl Evans 5 5 10 10 6 10 4 6 56 15,582 3 3 3 2 5 Hosaka Nagel 3 3 6 6 6 4 3 10 41 27,250 5 4 3 5 4 Lance 5011 &Lunghard 5 5 10 8 6 10 4 8 56 35,600 5 5 4 5 3 Mayer Hoffman McCann 5 4 10 10 8 10 3 6 56 22,800 5 5 5 5 4 Ortega &Konrad 5 5 10 10 10 10 4 8 62 Scoring:1 -5,with 5 =highest AGENDA ITEM 7b STAFF REPORT TYPE MEETING: SUBMITTED BY: APPROVED BY: (Chief) Regular Board Daniel Kay <:s>"'- Associate Civil Engineer Ron Ripperger ~ Engineering Manager Rod posad~~ Chief,Engineering MEETING DATE: PROJECT / SUBPROJECT: March 4,2009 P2191-DIV.3 001103 NO. APPROVED BY: (Ass!. GM): SUBJECT: Manny Magan~/'.- Assistant General ~nag~Engineering and Operations Change Order No.1 to the Contract with Spiess Construction for the 850-4 Reservoir Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board Change Order No.1 to the original contract with Spiess Construction (Spiess),for construction of the 850-4 Reservoir Project for a deductive amount not to exceed <$250,778.45>(see Exhibit A for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute Change Order No.1 (see Exhibit B)for a deductive amount not to exceed <$250,778.45>to the original contract with Spiess for construction of the 850-4 Reservoir. ANALYSIS: At the January 16,2008 Board Meeting,Spiess was awarded the construction contract for the 850-4 Reservoir,2.2 Million Gallon Project.Project construction began in February 2008. Overall,construction is approximately 50%complete. Change Order No.1 provides reimbursement to the District in a net deductive amount of <$250,778.45>.A summary of each item in the change order is described below: The first item is for changes made to the solar equipment.The inverter specified was not compatible with the solar panels specified.The inverter had to be upgraded increasing the original cost.The amount for this change is $752.40. The second item is for the tie-in location of the inlet pipe. The proposed location could not be built per plan due to the steep terrain and accessibility,therefore,the tie-in location was moved.The new location required extra material and additional labor.The amount for this additional work is $1,925. The third item is for changes required to connect the tank drain and overflow into a catch basin.The proposed alignment could not be constructed per plan due to the angle of entry into the catch basin.The amount for this additional work is $1,524.15. The fourth item is a credit to the District for eliminating the installation of 3-inch conduit carrying electrical,telemetry and control wiring along the access road.An existing abandoned 2-inch conduit that runs from the bottom of the access road to the reservoir was discovered in good condition.This existing conduit was used to carry the proposed wiring in-lieu of a new 3-inch conduit.The amount of this deductive change is <$16,260>. The fifth item is a credit back to the District for installing cold mix in-lieu of oil sand beneath the reservoir floor and reducing the thickness from 6 inches to 4 inches.The oil sand specified was not available therefore,cold mix was used.The American Water Works Association (AWWA)Standard for Steel Reservoirs states that an asphaltic road mix may be used in-lieu of oil sand,should oil sand not be available.The AWWA Standard also states a minimum foundation thickness under the floor shall be 3-inches,therefore,to save material costs the thickness was reduced to 4-inches.The amount of this deductive change is <$8,620>. The sixth item is for two bid items District Staff has decided not to use as part of this contract.The original contract called for the contractor to re-coat the exterior of the existing 850-2 Reservoir and dispose of any hazardous material encountered during surface preparation.This work was to be funded by the operating budget.However,funding for reservoir coating in Fiscal Year 2009 was canceled due to the lack of incoming revenue.The condition of the exterior coating on the 2 existing 850-2 Reservoir is still in working condition,however, it will need to be re-coated in the future due to signs of peeling.District staff will include this reservoir on the priority list for re-coating.The amount for thi§deductive change is <$230,100>. The following is a table summarizing the value for each item: Item Issue Amount 1 Solar Equipment $752.40 2 Inlet Tie-In $1,925.00 3 Tank Overflow &Drain $1,524.15 4 Electrical Credit <$16,260.00> 5 Oil Sand Credit <$8,620.00> 6 Bid Item Credit <$230,100.00> Total <$250,778.45> FISCAL IMPACT: The approved total budget for CIP P2191,as approved in the FY 2009 budget,is $3,250,000.Expenditures to date are $1,882,331.Total commitments to date,including this Change Order,are approximately $3,250,000.(See Attachment B for budget detail.) The Project Manager anticipates that,based on the attached financial analysis,the budget will be sufficient to support this project.Finance has determined that 27%of the funding is available from the Expansion Fund and 73%is available from the designated Betterment Fund. STRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater services to the customers of Otay Water District,in a professional,effective, efficient,and sensitive manner ..."This project fulfills the District's Strategic Goals No.1 -Community and Governance,and No.5 -Potable Water,by maintaining proactive and productive relationships with the project stakeholders and by guaranteeing that the District will provide for current and future water needs. LEGAL IMPACT: None. 3 P:\WORKING\CIP P2191\Staff Reports\BD 03-04-09/Staff Report,Spiess C.o.#1 for 850-4 Reservoir,(DK-RR).doc DK/RR:jf Attachments:Attachment A Attachment B Exhibit A Exhibit B 4 P2191-001103 I I~CT: ATTACHMENT A Change Order No.1 to the Contract with Spiess Construction for the 850-4 Reservoir Project COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: • • Staff is requesting that the board approve a deductive Change Order to Spiess Construction in an amount not to exceed <$250,778.45>for the construction of the 850-4 Reservoir. The change order consists of six items: o A solar equipment part was not compatible with the solar panels specified for the project.The part needed to be upgraded at an additional cost of $752.40. o The tie-in location of the in-let pipe needed to be moved due to the steep terrain and accessibility.The new location required additional material and labor at a cost of $1,925. o The catch basin for the tank drain and overflow needed to be altered due to the angle of entry (it must go in perpendicular rather than diagonally).The additional cost for this change is $1,524.15. o An electrical conduit was eliminated as an existing abandoned conduit was discovered in good condition. This resulted in a deductive change of <$16,260>. o 'Cold Mix'in lieu of 'Oil Sand'was utilized beneath the reservoir floor as Oil Sand was not available in San Diego.The thickness was also reduced from 6"to 4"(3"is the minimum standard).These changes meet the standards of American Water Works Association (AWWA)for steel reservoirs.These changes reduced cost by <$8,620>. o Deleted the recoating of the exterior of the reservoir from the contract.The condition of the exterior coating is still in working condition.Staff had included it in the contract as the contractor was already on-site.However,the bids were too high and staff felt that if two reservoirs were recoated at once,the bids would be better.The reservoir will instead be included on the priority list under the Reservoir Coating Maintenance Program.This change resulted in a deductive change of <$230,100>. •The committee inquired if landscaping at the reservoir site was included as part of the plan.Staff indicated that landscaping will be installed.The landscape will be "hardened"to make it less accessible for security reasons and will be aesthetically pleasing while easy to maintain. •The committee suggested that staff provide a survey to the surrounding community after the construction of a facility is completed to receive feedback on how the construction impacted the community and how the District can improve. I·1 •Staff also suggested that the District forward a survey to the community affected by the construction of the 1296 reservoir when it has been completed. The committee supported staffs'recommendation and presentation to the full board on the consent calendar. 6 ATTACHMENT B ·.J ...........................................___ __.. Spiess Construction:with1totheContract Reservoir Project Change Order Nolp2~~__~_~he ~~O~__ Otay Water Dislrict P2191-Res -850-4 Reservoir2 2 MG Date Updated:February04,2009 Outsl3ne!;ng ProjectedFinal VendorlBudgetCommittedExpendituresCommitment& $3,250,000 FOfOt:'ast Cost Comments Planning labor 114,992 114,992 114,992 Subcontract 2,950 2,950 -2,950 ANDREWA.SMITHCOMPANY 37,739 37,739 37,739 JOHNPOWELL&ASSOCIATES,INC. 300 300 -300 MICHAEL D.KEAGY 6,177 6,177 6,177 P&D CONSULTANTS,INC. 5,164 5,164 -5,164 RECON 1,328 1,328 -1,328 ASLCONSULTING ENGINEERS 30,364 30,364 30,364 REGIONAL ENVIRONMENTAL Materials 103 103 103 TIGERREPRO GRAPHICS Temporary Labor 16 16 16 ATWORK PERSONNELSERVICE 632 632 -632 PRIMARY FUNDING CORP. 245 245 -245 SEDONA STAFFING SERVICES 45 45 45 TEMPROINC../SEDONA ConsultantContracts 48,176 48,176 48,176 RECON OutsideServices 1,275 1,275 1,275 COUNTYOF SAN DIEGO RECORDER 27 27 27 FEDEX 889 889 889 MERKEL&ASSOCIATES,INC. 1,647 1,647 1,647 RECON 1,438 1,438 1,438 UNION TRIBUNE PUBLISHING Service Contracts 108 108 108 SANDIEGODAILYTRANSCRIPT OtherAgencyFees 16,811 16,811 16,811 COUNTYOF SAN DIEGO Total Planning $270,425 $270,425 $$270,425 Design InHousellabor 399,246 399,246 399,246 In HouselLabor(future)- Consultant Contracts 8,646 8,646 -8,846 NINYO &MOORE 17,800 17,800 -17,800 ENGINEERING PARTNERS INC,THE 13,601 12,343 1,258 13,601 KTU+A 10,352 10,352 10,352 MERKEL &ASSOCIATES INC 3,925 3,925 -3,925 J C HEDENANDASSOCIATES INC 15,695 14,210 1,485 15,695 NOLTEASSOCIATES INC TemporaryLabor 14 14 -14 ATWORKPERSONNELSERVICE 165 165 165 SEDONA STAFFING SERVICES Professional Legal Fees 3,609 3,609 -3,609 BURKE,WILLIAMS &SORENSENLLP 954 954 954 GARCIA CALDERON &RUIZLLP Service Contracts 1,000 1,000 1,000 SOUTHLAND TITLE 6,500 6,500 6,500 BOWEN &ASSOCIATES 5 5 -5 PETTYCASH CUSTODIAN Advertising/Bid 3,726 3,726 3,726 MERKEL&ASSOCIATESINC SettlemenUEasement 10,000 10,000 10,000 HIGHLAND RANCHCOMMUNITY Total Design $495,439 $492,696 $2,743 $495,439 Construction In Housellabor 127,678 127,678 13,764 141,442 ServiceContracts 7,401 7,401 .7,401 OCB REPROGRAPHICS Professional&Legal Fees 1,012 1,012 1,012 GARCIA CALDERON&RUIZLLP Construction Contracts 2,309,670 876,969 1,432,701 2,309,670 SPIESSCONSTRUCTION COINC 256,630 97,441 159,189 256,630 RABOBANK COTOSPIESSFORDELETION OF BID ChangeOrderNo.1 (250,778)(250,778)(250,778)ITEMS,FIELD CREDITS,AND FIELD CHANGES 8,115 8,115 8,115 SANDIEGOGAS &ELECTRIC OutsideServices 293 293 293 HELIX ENVIRONMENTAL PLANNING, Advertisement/Bid 344 344 -344 UNION TRIBUNE Waterloss 7 7 7 AccpUclose-out 10,000 10,000 10,000 Total Construction $2,470,372 $1,119,261 $1,364,876 $2,464,138 Grand Total $3,236,238 $1,882,381 $1,367,618 $3,250,000 .......,~.... ." >,SOALE:1"=600' IMPERIAL BEACH \ CIP P2191 VlCNTYMAP '<tool\J"-'<t "-l\J IcoClco cg...---------t..----------------------------------..:>/~OTAYWATER DISTRICT Qje 850-4 RESERVOIRll.. l=l~LOCATION MAP0:........• EXHIBIT A OTAYWATER DISTRICT EXHIBIT B 2554 SWEETWATER SPRINGS BLVD.,SPRING VALLEY,CA.91978,(619)670-2222 CONTRACT/P.O.CHANGE ORDER No.01 PROJECT/ITEM:850-4 Reservoir CONTRACTORNENDOR:Spiess Construction APPROVED BY:Board REF.P.O.No:707937 DESCRIPTION: Six separate items are part of this change order: 1.Upgraded Solar Equipment 2.New Inlet Tie In Location 3.Tank Overflow &Drain 4.Electrical Credit 5.Oil Sand Credit 6.Bid Items 12 &12A Credit REF.CIP No.:P2191 REF.W.O.No.:N/A DATE:03-04-09 See attached Change Order Proposals for items 1 through 5 from Spiess Construction. REASON: 1.The inverter specified was not compatible with the solar panels specified.An upgraded inverter needed to be purchased in order for it to be compatible.The amount of this change is $752.40. 2.The proposed location of the inlet tie in could not be constructed per plan due to the steep terrain and accessibility issues.The tie in was moved closer to the existing inlet vault for the 850-2 Reservoir.The new location required extra material and labor.The amount of this change is $1,925.00. 3.The reservoir overflow and drain needed field modifications to enter into a catch basin perpendicularly.For the flapper valve to work properly the drain has to come into the catch basin perpendicularly.The amount of this change is $1,524.15. 4.The installation of a 3"conduit for electrical,telemetry,and control lines along the access road was not installed because it was discovered that there was an existing 2"conduit in good condition that could carry the same wires.The amount of this deductive change is <$16,260.00>. 5.The contractor installed cold mix in lieu of oil sand under the reservoir floor and reduced the thickness from 6 inches to 4 inches.According to the AWWA Standard for Welded Reservoirs cold mix is an acceptable substitute and the minimum thickness for soil under the reservoir floor is 3 inches. The amount of this deductive change is <$8,620.00>. 6.The District will not be using bid items No.12 &12A of the contract.These items are coating the exterior of the existing reservoir and handling of hazardous material respectively.There is not sufficient funds in the operating budget to cover the cost to re-coat the existing reservoir. CHANGE P.O.TO READ: Revise contract to deduct $250,778.45 for a total contract amount of $2,315,521.55. ORIGINAL CONTRACT/P.0.AMOUNT: ADJUSTED AMOUNT FROM PREVIOUS CHANGE: TOTAL COST OF THIS CHANGE ORDER: NEW CONTRACT/P.O.AMOUNT IS: P:IWORKINGICIP P21911ConslruclionlChange OrderslChange Order No.1.doc $2,566,300.00 $0.00 $(250,778.45) $2,315,521.55 ORIGINAL CONTRACT COMPLETION DATE: CONTRACT/P.O.TIME AFFECTED BY THIS CHANGE: REVISED CONTRACT COMPLETION DATE: 5/12/09 No N/A IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS,THAT THE CONTRACTORNENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES.IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O.ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O.REMAIN IN FULL FORCE AND EFFECT. DIV.MGR:_ CONTRACTORNENDOR: SIGNATURE:_ NAME:_ STAFF APPROVALS: PROJ.MGR:Sr Eng (IntL-DATE:_ DATE:_ TITLE:DATE:_CHIEF:_DATE:_ ADDRESS:ASST.GM:_------------------ DISTRICT APPROVAL: GEN.MANAGER:_ DATE:_ DATE:_ COPIES:0 FILE (Orig.),0 CONTRACTORIVENDOR,0 CHIEF-ENGINEERING,0 CHIEF-FINANCE,0 ENGR.MGR.o ACCTS PAYABLE,0 INSPECTION,0 PROJ.MGR.,0 ENGR.SECRETARY,0 PURCHASING,0 PROJECT BINDER P:IWORKINGICIP P2191IConslruclionlChange OrderslChange Order No.1.doc CHANGE ORDER LOG 850-4 Reservoir 2.2MG EXHIBIT B P2191- 001103 APPROVED C.O.AMOUNT BY DATE DESCRIPTION TYPE C.O. Six items:Solar Equipment,Tie in Location,Tank 1 ($250,778.45)Board 3/4/2009 Overflow &Drain,Electrical Credit,Oil Sand Credit,and Owner Initiated Bid Items 12 &12A credit. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4U Total C.O.'s To Date: Original Contract Amount: Current Contract Amount: Change Order Breakdown for the Month: Month Net C.O.$Limit Authorization 2/09 ($250,778.45)$5,000/5%PM/Supervisor $10,000/10%Manager $15,000/20%Chief $50,000/30%GM P:\WORKING\CIP P2191\Construction\Change Orders\COLOG ($250,778.45) $2,566,300.00 $2,315,521.55 Absolute C.O.$ $0.00 $0.00 $0.00 ($250,778.45) -9.8% Absolute C.O.% 0.0% 0.0% 0.0% -9.8% AGENDA ITEM 7c STAFF REPORT March 4/2009TYPEMEETING: SUBMITTED BY: Regular Board Bob Kennedy t;7'i- Associate Civil Engineer MEETING DATE: PROJECT/ SUBPROJECT: D0562- 090043 DIV. NO. 3 APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: Ron Ripperger ~ Engineering Manager Rod posada~c>~ Chief/Engineering Manny Magafia~~ Assistant General nager/Engineering and Operations Approval of Memora urn of Understanding Concerning Adjustment of Boundary between Otay Water District and Sweetwater Authority GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board authorizes the General Manager to enter into a Memorandum of Understanding (MOU) (see Attachment B)with the Sweetwater Authority (SWA)/South Bay Expressway/L.P./a California Limited Partnership (SBX)/and the California Department of Transportation (Caltrans)concerning the processing of the service area boundary adjustment between the District and SWA. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to enter into a MOU which will set forth the understanding of the District/SWAt SBX/and Caltrans concerning the process for a boundary adjustment between the District and SWA and memorializes the agreement of the parties concerning their respective responsibilities. ANALYSIS: An adjustment of the service area boundary between the District and SWA has been requested by SBX to facilitate providing landscape irrigation service to the SR-125 median and shoulders. The proposed boundary adjustment is shown on the two exhibits in Attachment B. Due to large areas requiring landscaping,and to De efficient with the design,the proposed irrigation system would be extended outside of SWA's service area and into the District's service area.Conversely,some of the irrigation system connected to the District's meter has extended into SWA's service area.It is deemed best to adjust the service area boundary to accommodate this design. The District and SWA have agreed in principle to the proposed boundary adjustment with the requirement that SBX prepare, process,and fund the adjustment through the Local Agency Formation Commission (LAFCO)Change of Organization or Reorganization process.Since this is a lengthy process,the District and SWA require a Memorandum of Understanding among all parties,to ensure that SBX is committed to funding and processing the boundary adjustment.The MOU (Attachment B)has been reviewed by staff and the District's legal counsel. The proposed boundary adjustment will not result in any loss of potential developable land for future service by the District as it only covers the SR-125 freeway area. FISCAL IMPACT:.~~ There will be no fiscal impact.South Bay Expressway will pay for all processing costs,which includes staff time and boundary adjustment fees by LAFCO. STRATEGIC GOAL: This project supports the District's Mission Statement,"To provide safe,reliable water,recycled water,and wastewater services to our community in an innovative,cost efficient water-wise,and environmentally responsible manner,"as well as, the General Manager's vision,"...prepared for the future..."by guaranteeing the District will always be able to meet future water supply obligations and plan,design,and construct new facilities. LEGAL IMPACT: The District commits to work with SBX,Caltrans,and SWA,as needed to facilitate the processing of the boundary adjustment. 2 Generakfrqj;j;f) P:\Working\WO D0562\Staff Reports\BD 03-04-09,Staff Report,Boundary Adjustment with CWA,(BK- RR).doc BK/RR:jf Attachments:Attachment A Attachment B 3 00562-090043 ATTACHMENT A !sUsJEcrjpRoJECT:Approval of Memorandum of Understanding Concerning Adjustment of Boundary between Otay and Sweetwater Authority COMMITTEE ACTION: ...•.......................•............................ .............1 The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: •The boundary adjustment between Otay and Sweetwater Authority was requested by South Bay Expressway to facilitate irrigation services. •The boundary adjustment will be processed through LAFCO. South Bay Expressway will prepare,process and fund the boundary adjustment. •The proposed boundary adjustments will make the between Otay and Sweetwater Authority cleaner. controversy with the proposed changes. boundaries There is no • • • A portion of the irrigation for the freeway (South of SR 54)will be potable due to water shed to the basin.South of this basin,recycled water will be utilized. CalTrans is supportive of the boundary changes. Staff is requesting that the Board approve the MOU with Sweetwater Authority,South Bay Expressway and the California Department of Transportation with regard to the processing of the service area boundary adjustment between Otay and Sweetwater Authority. The committee supported staffs'recommendation and presentation to the full board on the consent calendar. ATTACHMENT B MEMORANDUM OF UNDERSTANDING BETWEEN OTAYWATERDISTRICT, SWEETWATER AUTHORITY,CALTRANS AND SOUTH BAY EXPRESSWAY FOR COORDINATION OF AGENCY BOUNDARY ADJUSTMENTS RELATED TO SR 125 LANDSCAPE IRRIGATION PREAMBLE This Memorandum of Understanding (MOU)is made and entered into effective _ __,2008 by and between: Otay Water District (OWD),with offices at 2554 Sweetwater Springs Blvd.,Spring Valley,CA 91978 and Sweetwater Authority (SWA),with offices at P.O.Box 2328,Chula Vista,CA 91912, and California Department of Transportation (Caltrans),with offices at 4050 Taylor Street,San Diego,CA 92110 and South Bay Expressway L.P.(SBX),with offices at 1129 La Media Road, San Diego,CA 92154 (each a "Party,"and collectively the "Parties"). Caltrans and SBX are parties to that certain Development Franchise Agreement for a Privatized Transportation Project dated as of January 6,1991,as amended (the "Development Franchise Agreement")for development,design and construction of the SR-125 South Toll Road Project as more particularly described therein.For purposes of this MOU,Caltrans,SBX and its contractors will be herein collectively referred to as the "PROJECT." This MOU is to serve as the basis for the coordination and completion of water district boundary adjustments related to SR 125 South landscape irrigation.The boundary adjustments are needed to prevent placing two mainline irrigation lines in Caltrans right-of-way due to existing district boundary lines. This MOU is to the mutual and exclusive benefit of the Parties and is intended to be a guideline to the timely completion of the boundary adjustments.This MOU shall not amend,modify, waive or alter in any way any existing contracts between or among the Parties or between a Party and its contractors,including but not limited to the Development Franchise Agreement,or any contract between SBX and Otay River Constructors,and shall not be deemed a Contract Document as defined in the Development Franchise Agreement.This MOU is intended to benefit the Parties only,and there shall be no third party beneficiaries of this MOD. UNDERSTANDING Page 1 of 3 This MOD sets forth the process by which the boundary adjustments will take place and the respective responsibilities of each Party in connection with such process.It is therefore mutually agreed as follows: •By execution of this MOD,OWD and SWA hereby evidence their approval of the proposed water district boundary adjustments as shown on the two exhibits dated August, 12,2008 and August 26,2008,attached hereto and incorporated herein by reference (the "Boundary Adjustment Exhibits"),and agree that all actions to be taken by the PROJECT in accordance with the following paragraphs shall be in reliance upon such approval by OWD and SWA.Any proposed alternations to the Boundary AdjustmentExhibits shall be subject to the mutual approval of the Parties,and shall not be effective unless and until evidenced by a written amendment to this MOD executed by all Parties.OWD and SWA agree to reasonably,in good faith and timely consider any proposed amendment to effect a change in the Boundary Adjustment Exhibits submitted by the PROJECT for their approval. •The PROJECT will draft and submit the San Diego Local Agency Formation Commission's (LAFCO)Change of Organization or Reorganization Application. o OWD and SWA will assist as needed to review and complete the application, including but not limited to completing a certified resolution of application,and reasonably and in good faith providing evidence of such other approvals or actions as may be necessary in accordance therewith. o The PROJECT will obtain a metes-and-bounds legal description of the boundary adjustment and submit the same to OWD and SWA for their review and approval, and complete environmental documentation if needed.If OWD and SWA do not provide any comments on such documents submitted for their review and approval within fifteen (15)business days,the PROJECT may consider the same approved and proceed with the application in reliance upon such approval. o The PROJECT will pay all associated fees in processing the application including OWD and SWA's time.Promptly upon execution of this MOD and receipt of an invoice from OWD and SWA for their anticipated costs,the PROJECT shall advance payment to an account for OWD's and SWA's benefit.OWD and SWA shall bill their time against funds on deposit in such account and provide back-up to the PROJECT as requested. •The PROJECT will pay all costs associated with adjusting the water connections as needed for the landscaping irrigation system.The Project shall obtain all required approvals from the appropriate agency.OWD and SWA shall cooperate in reasonably, promptly and in good faith assisting the PROJECT to obtain such approvals by reviewing documents,providing any required approvals,and taking such other actions as otherwise may be necessary in connection with such agency approvals. •Caltrans and SBX do not presently anticipate that the land included in the adjustment will be developed as it is adjacent to the highway and is owned by the Caltrans.The Parties anticipate that after the initial plant establishment,irrigation water usage will be reduced. Page 2 of 3 IN WITNESS WHEREOF,the Parties have executed this Memorandum of Understanding as of the date written above. OTAY WATER DISTRICT By: MARK WATTON General Manager SWEETWATER AUTHORITY By: General Manager CALTRANS By: District Director SOUTH BAY EXPRESSWAY,L.P.,a California limited partnership By: GREG HULSIZER ChiefExecutive Officer Exhibits Page 3 of3 EX[SliNG OlAY \;;ATER Di"5TRIC"i AREA PROPOSED OlAY WATER DISTRICTAREACHANGE • EXISTING SWEETWATER AUTHORITyWATERDISTRICTAREA • PROPOSED SWEETWATER AUTHORITYWATERDISTRICTAREACHANGE "'I PROPOSED IRRIGA nON BOUNDARY EXHIBIT SHEET 10F 2 DATE 8/12/1218 HomeuseOOyJ ... ExISTING OTAv WATER Dl$TR£CT AREA •:~~~OE~~Ng~AY WATER OlSTRICi • EXISTING SWEEWATERDlSTRlC~W~~:AUTHORITY • PRQ?OSEO S EWATEROIST~[l/~1~c~~lTY \ STAFF REPORT AGENDA ITEM 7d MEETING DATE:March 4,2009TYPEMEETING:Regular Board SUBMITTED BY:Ron Ripperger ~ Engineering Manager PROJECT/ SUBPROJECT: N/A DlV. NO. 3 APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: Scott Kube ~J~fL. Utility Setvites Manager Rod Posada~~~o~~ Chief,Engineering Pedro Porras 11 Chief,Water operation~ Manny Maga~~ Assistant General nager,Engineering and Operations Create a new ClP p oject for the Ruxton Avenue Utility Relocations Project and waive the requirement of the District Purchasing Manual regarding competitive bids GENERAL MANAGER'S RECOMMENDATION: That the Otay Wate~District (District)Board authorizes the General Manager to Create a new ClP project for the Ruxton Avenue Utility Relocations in the amount of $100,000 (see Exhibit A for project location)and to reimburse TC Construction in an amount not to exceed $25,000 for pipeline repairs on the project. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval authorizing the General Manager to create a new ClP project for the Ruxton Avenue Utility Relocations in an amount not to exceed $100,000,and to reimburse TC Construction in an amount not to exceed $25,000 for pipeline repairs OD the project. ANALYSIS: During each fiscal year,the District receives a variety of requests from other agencies to review their plans for upcoming projects such as new construction or road improvements. District Staff reviews the plans and responds as to whether or not there are any conflicts with District facilities.In general,these requests are minor in nature requiring primarily plan check review and,in some cases,some relocation of appurtenances in the field.There is really no way of knowing what requests will be received during the year and therefore,no way to budget for this work in the CIP budget.The minor relocations are completed by the Operations Department and funded from the Operating Budget. When District facilities are in conflict with other agency proposed improvements,the first order of business is for Staff to determine if the District has prior and superior rights.In the case where the District has prior rights the requesting agency is responsible for paying all costs to relocate any facilities,if needed.When the District does not have prior rights then the cost for any relocation must be borne by the District. Staff received the first request to review plans from the County of San Diego (County)for Ruxton Avenue in July,2007.Staff reviewed the 30%plans and determined that there was an impact to District facilities.Staff requested a redesign of the County plans to avoid conflicts with District pipelines.In November 2007,Staff received a 70%design which addressed the Staff's concerns contingent upon pothole information.Staff potholed the pipelines and provided the information to the County.After the potholing was completed the suggestion was made to abandon a section of 8-inch pipeline in the intersection of Jamacha Boulevard and Ruxton Avenue to avoid having to relocate a portion of the pipeline due to the conflict with the County's improvements.Staff changed the plans by adding a necessary interconnection in Ruxton Avenue from the 8-inch pipeline to the 18-inch service main to satisfy fire flow requirements. Staff received 100%plans in March 2008 which incorporated the pothole information and all other added information.After Staff reviewed the 100%plans in late March,the suggestion was made to include concrete protection pads over both the 36-inch La Presa Transmission Pipeline and the 18-inch service main.At this point,the District's costs were still relatively minor and could be funded from the Operating budget.Staff completed the interconnect work in October of 2008 prior to the County beginning their improvement work. 2 In January 2009,a concern arose,that if repair and maintenance was required,access would be very difficult,if not impossible and time-consuming,for the 36-Inch La Presa Transmission Pipeline and the 18-inch service main,under the County's proposed 26-foot wide triple box drainage culveri.So the decision was made to add a redundant 18-inch pipeline with steel casing parallel to the existing 18-inch service main in Ruxton Avenue.If a break occurs to the active 18-inch,Staff will have trouble-free access to reconnect to the redundant 18-inch service main.In addition,Staff plans to further evaluate the need for a new CIP project in the FY 2010 budget to add a new segment of pipe for the La Presa Transmission Pipeline 36-Inch Pipeline to add the redundancy in the event that repair is needed to the La Presa Pipeline under the County's culvert. T.C.Construction,the Contractor hired by the County to build the Ruxton Avenue Channel Conversion,was mobilized on-site and proceeding with their critical path placement.To avoid substantial construction delay costs,Staff directed T.C. Construction to proceed with the placement of the redundant 18- inch service main.When the concern arose,Staff did not have the luxury of obtaining three (3)quotes for work exceeding $5,000,as outlined in the Purchasing Manual requirements.The additional cost was analyzed by Staff and a mutual agreement was reached with T.C.Construction in an amount not to exceed $25,000. In summary,the costs to date to the District have increased much more than anticipated due to the increased scope of the relocation of facilities.Also,Staff has engaged TC Construction to install the 18-inch redundant pipeline and casing due to the County's immediate need to complete their improvement work.Staff recommends creating a new CIP project in the amount of $100,000 to cover all costs for the Ruxton Avenue work. FISCAL IMPACT: Total expenditures plus outstanding $100,000.Based on a review of the Project Manager has determined that sufficient to support the project. detail. commitments and forecast are financial budget,the the proposed budget is See Attachment B for budget Finance has determined that due to the reduced level of CIP expenditures this fiscal year 100%of the funding will be available from the Betterment Fund. 3 STRATEGIC GOAL: This project supports the District's Mission Statement,"To provide safe,reliable water,recycled water and wastewater services to our community in an innovative,cost efficient water wise and environmentally responsible manner,"as well as the General Manager I s vision,"...prepared for the future..."by guaranteeing the District will always be able to meet future water supply obligations and plan,design,and construct new facilities. LEGAL IMPACT: None. P:\WORKING\CIP P1287\FY 2Q09\Staff Reports\Ruxton Avenue\BD 03-04-09,Staff Report,Ruxton Avenue,(RR-SK-RP-PP).doc RR/SK/RP/PP:jf Attachments:Attachment A Attachment B Exhibit A 4 ATTACHMENT A ............................................................................................................ i SUBJECTIPROJECT:!Create a new CIP project for the Ruxton Avenue Utility !NM I Relocations Project and waive the requirement of the LLDistrict Purchasing Manual regarding competitive bids COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: • • • • • Staff received a request from the County in July 2007 to review plans for a boxed culvert replacement and road improvements at the intersection of Jamacha Boulevard and Ruxton Avenue.It was determined that the improvements would impact the District's 36"La Presa transmission pipeline and the 18"service main as the boxed culvert will pass over the pipelines. Staff was concerned that it would be difficult to maintain the pipelines under the culvert and decided to design an altenate 18"line parallel with steel casing to the existing 18"service main. Staff had engaged TC Construction to install the 18" redundant pipeline and casing due to the County's immediate need to complete their road improvement.Staff recommends creating a new CIP project in the amount of $100,000 to cover all costs associated with the Ruxton Avenue work. Staff will further evaluate the need for a new CIP project in FY 2010 should a new 36"transmission redundant pipeline be required in the event that repairs are needed to the existing 36"transmission line under the County's culvert. All costs are borne by the District as the County has prior rights in the street right-of-way. The committee supported staffs'recommendation and presentation to the full board on the consent calendar. ATTACHMENT B Otay Water District Ruxton Avenue Utilities Relocation Date Updated:Feb.05,2009 Outstanding Vendor/Budget Committed Expenditures Commitment&ProjectedFinalCost Comments$125,000 Forecast Construction In House/Labor 43,376 43,376 43,376 Materials 9,400 9,400 -9,400 IMS WO#08-02516 Water Loss 3 3 -3 IMS WO#08-02516 Service Contracts 3,524 3,524 -3,524 Kirk Paving Construction Contracts 25,000 25,000 -25,000 TC Construction Company Inc. 10,000 10,000 -10,000 County ofSan Diego Contingency/Project Closeout 8,697 8,697 8,697 StaffTime/Unforeseen items -- -- -- -- Total Construction $100,000 $91,303 $8,697 $100,000 Grand Total $100,000 $91,303 $8,697 $100,000 IMPERIAL BEACH VICINITY MAP RUXTON AVENUE UTILITY RELOCATIONS OT AY WA TER DISTRICT li3"/\CF' IN FX I XI P1287 INSTALL 18"PVC INSIDE 30"CML&C SLEEVE. CAP AT EACH END. w 26'WIDE TRIPLE BOX CULVERT. 54"WIDE PIPE PROTECTION PAD .---STA 1+74.00 INSTALL 8"INTERCONNECT w ---w w - l fI<,l A JAMACHA BLVD I-XI I 1F(RIJ~.M'~Wl:;_.l J. 72"WIDE PIPE --===:::::;::-~ PROTECTION PAD EX jh'_"'--=-=-=---=-:::::.]1[...c.c".c····:·:,,:······I.\ ~0 -l60z fTljX..:CD0:.9-fTl (Xl'":>l>z~CD l>..:l>()z Z lJe0x:>0~ZII>...fTl0:00Q.'"0:... ':a:t; ".'"8~,.....U)N1L9-<) ia: EXHIBIT A 5TAFF REPORT AGENDA ITEM 8 TYPE MEETING: SUBMITTED BY: Regular Board,~-;f;; Joseph R.Beach,ef('/~// Chief Financial Officer MEETING DATE: W.O.lG.F.NO: March 4,2009 DIV.NO.All APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: Germa~rez,Assistant General Manager Future OPEB (Other Post Employment Benefits)Funding to the CalPERS Trust GENERAL MANAGER'S RECOMMENDATION: That the Board provides direction on the ongoing funding of the Annual Required Contribution (ARC)to CalPERS and the medical expense reimbursement requests from CaIPERS. COMMITTEE ACTION: See Attachment A. PURPOSE: To obtain direction from the Board on the ongoing funding of the Annual Required Contribution (ARC)to CalPERS and medical expense reimbursement requests from CaIPERS. ANALYSIS: On February 3,2008,the Board authorized the creation of a CalPERS trust to hold OPEB funds.This trust was set up in conformance with the Governmental Accounting Standards Board (GASB)requirements as outlined in GASB 45. At the February meeting,the Board authorized a $5 million initial deposit and ongoing payments of the ARC to the CalPERS trust.At this time,authorization was given to the General Manager and Chief Financial Officer to make withdrawals from the CalPERS trust to reimburse the District for any retiree medical costs made in the future.However,no specific direction was given on how to proceed with the reimbursements.Staff is looking to confirm the prior direction of the Board on the annual ARC payments and on how to proceed with reimbursements from CaIPERS. In Fiscal Year 2007-08,staff established the CalPERS trust,as directed,and made the initial $5 million deposit.In addition, staff made the ARC payment of $846,000,as directed.Aside from these direct payments,the District has effectively made a deposit to the CalPERS trust by way of funding the retiree medical benefits without making a claim on the CalPERS trust. The District is entitled to make reimbursement requests and has until June 30,2009 to make the reimbursement request for the Fiscal Year 2007-08 medical costs totaling $649,007. All retiree medical expenses are to be paid upfront by the District and then the District may request reimbursement.This is the normal process as outlined by CaIPERS.The District uses its internal designated OPEB fund to pay the retiree medical costs,and when and if reimbursements are requested from CaIPERS,the funds would be deposited back into the District's OPEB fund.As of December 31,2008,this internal fund had a balance of $4,716,540.The financial impact of the reimbursement is described in the Fiscal Impact section below. It is worth noting that the overall funding of the OPEB liability totals $9.1 million as of December 31,2008.The total estimated liability is $11.9 million resulting in a 77% funding level.This funding level is exceptional and rarely seen in other government entities.One important note regarding the balance of funds is that CalPERS lost approximately 25%of its value in the stock market crash.Approximately half of the CalPERS funds are invested in equities,which were affected significantly by the crash. This fund is a long-term fund focused on payments going far into the future.With this long-term perspective,the District looks at a 30-year funding strategy,spreading out the short term effects of significant market changes. ~FISCAL IMPACT:.~/~ (77 The decision of whether or not to fund the full ARC and whether or not to request full reimbursement of retiree medical costs from CalPERS have various financial ramifications. One of the financial impacts is best summarized in the context of a discussion on risk versus return.The Otay funds are invested in very low risk investments with a secure market rate of return.CalPERS is invested at a moderately higher risk level than Otay.Commensurate with this added risk is added return.The higher return from the CalPERS investments-means that the total money needed to be considered fully funded is lower than if the District had maintained its own investment portfolio.This was one of the significant benefits of investing in a PERS trust.The lower liability freed up funds, previously designated to fund the OPEB liability,to be used for additional negotiated employee benefits. If the District continues to make the full ARC payment then the District will continue to use the higher CalPERS rate of return. Without fully funding the ARC payment the actuary will no longer be able to use the CalPERS rate of return.This would result in a greater unfunded balance and a corresponding higher ARC. The second financial impact is on cash reserves.If the District uses its own designated OPEB funds to pay for retiree health care without requesting reimbursement from CaIPERS,then the District's OPEB funds will be depleted in the beginning of calendar year 2013.If the District does make the requests for reimbursement,the District will be able to maintain a higher fund balance over a longer period of time,maintaining the District's reserves into calendar year 2016.Requesting reimbursement has the benefit of maintaining a larger amount of funding in control of the District for a longer period of time. This gives the District added financial flexibility during this difficult financial time.Also,extending the time that the District maintains its own OPEB funds delays the upward pressure on rates that will occur when the ARC is fully funded from rates as opposed to the OPEB funds. The third financial impact relates to the District's credit rating.A discussion is warranted on this matter,as funding less than the ARC is an option available to the Board.The fact that the District has deposited approximately half of the OPEB liability into a trust is a significant plus for the District's credit rating.However,even more important is that the District maintains a funding plan that at least pays the ARC. Showing the financial foresight and where-with-all to make the ARC payments on an annual basis is one of many important factors in evaluating the District's credit worthiness.In the current credit markets,maintaining the District's AA rating is significant.The interest rate variation between an A and a AA rating is close to 2%which can equate to a tremendous savings in interest expense for the District.It was the Board's direction to make the ARC payments on an annual basis and staff is looking to reaffirm that position. STRATEGIC GOAL: Ensure financial health through formalized policies,prudent investing,and efficient operations. LEGAL IMPACT: None. Attachments: A)Committee Action Form B)OPEB Presentation ATTACHMENT A Future OPEB (Other Post Employment Benefits)Funding to the SUBJECT/PROJECT:CalPERS Trust COMMITTEE ACTION: The Finance,Administration,and Communications Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: • • • In February 3,2008,the board had authorized the creation of a CalPERS trust to hold OPEB funds with a $5 million initial deposit and onging payments of the Annual Required Contribution (ARC)into the trust of approximately $846,000. Staff is requesting direction from the board if it wished to continue to fund the ARC and request medical expense reimbursements from CaIPERS. All retired medical expenses are paid upfront by the District and the District may then request full reimbursement from CalPERS.Retiree medical expenses totaled approximately $649,000 in Fiscal Year 2008.By requesting reimbursement,the District has the benefit of maintaining a larger amount of funding in the control of the District for a longer period of time.This provides financial flexibility to the District and staff is recommending that it request the reimbursements on an ongoing basis. •Staff also recommends that the board continue to fund the ARC.By continuing to pay the ARC,it is a plus for the District's credit rating. •It was noted that approximately 77%of the OPEB liability is funded between the CalPERS trust and the Otay OPEB account as of December 31,2008.If the Otay OPEB account is excluded,the liability is funded at approximately 37%. The committee supported staffs'recommendation and presentation to the full board on the consent calendar. Y:\Board\CurBdPkg\FINANCE\CommMtgOPEB030409.doc ITEM 8 Receive Direction from the Board on the Ongoing Funding of the Annual Required Contribution to CalPers and Medical Reimbursement Requests from CalPers Please reference Attachment 1 "PowerPoint"posted to Otay Water District website. AGENDA ITEM 9a STAFF REPORT March 4,2009TYPEMEETING:Regular Board SUBMITTED BY:James F.Peasley ~;\~ Engineering Manage~ MEETING DATE: PROJECTI SUBPROJECTS: P2467- 001000 P2462- 001000 DIV. &NO. nla APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): SUBJECT: Rod posad~Or Chief,Engineering Manny Magan~~ Assistant General_()Fager,Engineering and Operations Authorization to Execute an Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors (Board)authorizes the General Manager to execute the Agreement between Sweetwater Authority and Otay Water District for joint participation in the Otay River Groundwater Desalination Facility Project (Agreement) COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board authorization for the General Manager to execute the Agreement (Attachment B)to allow for reimbursement to Sweetwater Authority (SWA)an amount of $750,000 for the United States Department of the Interior Geological Survey San Diego Formation Potential In-Lieu Conjunctive Use Project and for reimbursement to Sweetwater Authority in the amount of $178,500 for the Otay River Basin Brackish Groundwater Desalination Feasibility Study. ANALYSIS: The District,in partnership with SWA as the lead agency, successfully applied for and acquired a San Diego County Water Authority (Water Authority)Local Investigations and Studies Assistance (LISA)Program Grant in the amount of $1,500,000 for the United States Department of the Interior Geological Survey San Diego Formation Potential In-Lieu Conjunctive Use Project (SDF Project).The total project cost is projected to be $3,000,000 with the District and SWA sharing funding at $750,000 each. The SDF Project is being accomplished utilizing the expertise of the united States Department of the Interior Geological Survey (USGS).The SDF Project scope of work over the next few years will continue the work of the USGS in the San Diego Formation. The work will focus primarily on hydrogeologic and geochemical interpretations elements and includes the construction of multi- depth monitoring wells within the Otay River,development of a groundwater computer model,and development of a report. SWA is the lead agency for accomplishing the tasks of the SDF Project in cooperation with the District and is the agency that entered into the LISA Grant Agreement with the Water Authority. The SWA will expend funds for the SDF Project and receive the LISA Grant funds.The District will reimburse SWA for their expenditures in the projected amount of $750,000. The SWA and the District will equally share the costs of the USGS annual fee to maintain the multi-depth monitoring wells associated with the USGS San Diego Formation efforts.The annual costs are currently projected to be $55,000 for five monitoring wells.These costs are planned to be funded as a part of the District's annual Operating Budget. Also,the District,in partnership with SWA as the lead agency, successfully applied for and acquired a State of California Proposition 50 Grant in the amount of $242,000 for the Otay River Basin Brackish Groundwater Desalination Feasibility Study (Desalination Study)located within the San Diego Formation. The total project cost is projected to be $599,000 with the District and SWA sharing funding at $178,500 each. The Desalination Study is being accomplished utilizing the expertise of the USGS and MWH,an engineering consulting firm. The objectives of the Desalination Study are to,(1)develop an integrated,comprehensive understanding of the geology and hydrology of the San Diego Formation;and (2)further understand how to expand use of the San Diego Formation for sustainable 2 Ii I water extraction and potential in-lieu conjunctive use. Existing data contributed to various components of the - Desalination Study and have provided important water quality data and information regarding depth-dependent flow rates,etc. SWA is the lead agency for accomplishing the tasks of the Desalination Study in cooperation with the District and is the agency that entered into the Proposition 50 Grant Agreement with the State.The SWA will expend funds for the project and receive the Proposition 50 Grant funds.The District will reimburse SWA for their expenditures in the projected amount of $178,500. Both the SDF Project and the Desalination Study are intended to assist in development of a work program that is planned to eventually lead to project design and implementation of a proposed Otay River Brackish Groundwater Desalination Facility. It is envisioned that the water supply costs,benefits,and risks derived from a joint SWA and District Otay River Brackish Groundwater Desalination Facility would be shared equally. Having a comprehensive understanding of the San Diego Formation will yield knowledge of the sustainable yield.The proposed Otay River Brackish Groundwater Desalination Facility hopefully will yield 6,000 acre~..~year or more of potable water. FISCAL IMPACT:~ //',/ The total budget for eIP P2467,as approved in the FY 2009 budget,is $1,600,000 for the SDF Project.Expenditures to date are $5,180.Total expenditures,plus outstanding commitments, including this agreement,totals $755,180.Based on a review of the budget,the Project Manager has determined the budget is deemed sufficient to support this project. The total budget for eIP P2462,as approved in the FY 2009 budget,is $200,000 for the Desalination Project.Expenditures to date are $1,389.Total expenditures,plus outstanding commitments including this agreement,totals $179,889.Based on a review of the budget,the Project Manager has determined the budget is deemed sufficient to support this project. Finance has determined that 100%of the funding is available from the Expansion Fund for both eIP projects. 3 STRATEGIC GOAL: Both the USGS San Diego Formation Potential In-Lieu Conjunctive Use Project and the Otay River Basin Brackish Groundwater Desalination Feasibility Study efforts support the District's Mission Statement,"To provide the best quality of water and wastewater service to the customers of the Otay Water District, in a professional,effective,efficient,and sensitive manner, in all aspects of operation,so that public health,environment and quality of life are enhanced."....and the Otay strategic goal,in planning for infrastructure and supply to meet current and future potable water demands. LEGAL IMPACT: None. P:\jpeasley\BD 03-04-09,Staff Report,Otay River Wells Study SWA Otay Agreement USGS,(JFP- RP).doc JFP/RP:j f Ij :~ . :..1...•~: I Ii Attachment:Attachment A Attachment B 4 COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item at a meeting held on February 20,2009.The following comments were made: Staff is requesting that the board approve an agreement between Sweetwater Authority and Otay Water District for joint participation in the Otay River Groundwater Desalination Facility Project. ATTACHMENT A Authorization to Execute an Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facillty Project • r"SUi3JECTjpRoJECT: P2467-001000 P2462-001000 •The project will explore the San Diego Formation and its possible water yield and the feasibility of a brackish groundwater desalination facility at the San Diego Formation. •Sweetwater Authority has received a LISA Grant from the San Diego Water Authority in the amount of $1,500,000 for the San Diego Formation project.The total cost of the project is $3,000,000 and Sweetwater Authority and Otay WD will fund the remaining cost at $750,000 each. •Sweetwater Authority also received a Proposition 50 Grant in the amount of $242,000 for the Otay River Basin Groundwater Desalination Feasibility Study.The total project cost is $599,000 and Otay WD and Sweetwater Authority will share funding of $178,500 each for the remaining cost. •It was discussed that the City of San Diego is claiming rights to the water within the Otay River watershed under pueblo rights.The City of San Diego met with Sweetwater Authority a few months ago when the City made the claim. Sweetwater Authority and the District is continuing to move forward with the project to develop groundwater from the Otay River and will determine in future how to respond to the claim. The committee supported staffs'recommendation and presentation to the full board as an action item. • • The cost for this project will be expended from two eIPs designated for the San Diego Formation Project and the Desalination Project. If the project is feasible,it is estimated it would go into service in 2014. I~1 11 [! II I:IIIi I 11I I' Ii II iI~~III~[ I, i.! f, ATTACHMENT 8 AGREEMENT BETWEEN SWEETWATER AUTHORITY AND OTAY WATER DISTRICT FOR JOINT PARTICIPATION IN THE OTAY RIVER GROUNDWATER DESALINATION FACILITY PROJECT This Agreement is entered into on ,2009,by and between Otay Water District,a municipal water district established under the Municipal Water District Law of 1911, (hereinafter referred to as Otay),and Sweetwater Authority,a Joint Powers Authority organized and operating under the Irrigation District Law of the State of California,Water Code Section 20500 et seq.(hereinafter referred to as Sweetwater).Otay and Sweetwater are collectively referred to hereinafter as the Parties and singularly,Party.Sweetwater and Otay,in consideration of their mutual covenants,and for other valuable consideration,agree as follows: RECITALS A.The economy,employment,and quality of life within the San Diego County region is dependent on a reliable and affordable water supply that is provided through cooperation of regional and local water agencies. B.The objective of Otay and Sweetwater is to plan,and potentially design,and construct an Otay River Groundwater Desalination Facility (Otay River DesaI)Project within the Lower Otay River Basin capable of producing a sustainable yield of potable water as a local supply. C.The purpose of the Otay River DesaI Project is to increase the quantity of local water supply within the South San Diego Bay region by development of a brackish groundwater well and desalination production system to extract,to the maximum extent practical,groundwater from the San Diego Formation;thereby,reducing treated water demand from the San Diego County Water Authority and the Metropolitan Water District of Southern California.A map of the Otay River DesaI Project and the San Diego Formation area is attached as Exhibit A. D.The Parties to this Agreement will proceed with the development of the Otay River DesaI Project in a phased approach.Sweetwater and Otay will proceed on the Otay River DesaI Project with the intent to participate equally in the first phase of project feasibility.Future participation and cost sharing would be determined by separate agreement. E.The Otay River DesaI Project effort is currently contemplated to be accomplished in two phases.Phase I is envisioned as the planning and feasibility aspects of the Project,and is intended to determine the feasibility and viability of extracting brackish groundwater from the San Diego Formation where it underlies the Otay River Basin with the purpose to eventually construct brackish groundwater desalination treatment and transport facilities.Phase II is envisioned as proceeding with a pilot project,environmental,design,construction,operation, maintenance,and other requirements of the Otay River DesaI Project production and transport Page 1 of7 SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project facilities to treat the groundwater and deliver the produced potable water to customers of both Sweetwater and Otay.Proceeding with Phase II is dependent upon the o~tcomes of the Phase I efforts. F.In 2006,Sweetwater,in partnership with Otay received notification from the California Department of Water Resources (DWR)that Sweetwater had been selected to receive a matching grant for the Otay River Basin Brackish Groundwater Desalination Study.The grant amount from DWR is $242,000.The combined Sweetwater and Otay contribution is $357,000,as further described below,for a total of $599,000. G.Through the Otay River Basin Brackish Groundwater Desalination Study,Sweetwater and Otay will determine the feasibility of extracting brackish groundwater from the San Diego Formation.A portion of the work involves the United States Geological Society (USGS) services to construct a multi-depth monitoring well near the Otay River. H.In 2007,Sweetwater,in partnership with Otay received notification from the San Diego County Water Authority (SDCWA)that Sweetwater had been selected to receive a matching grant from the SDCWA Local Investigations and Studies Assistance (LISA)grant funding program for the U.S.Geological Survey Study of the San Diego Formation for Potential In-lieu Conjunctive Use concept.The grant amount from SDCWA is $1,500,000.The combined Sweetwater and Otay contribution is $1,500,000,as further described below,for a total of $3,000,000. 1.The U.S. Geological Survey Study of the San Diego Formation for Potential In-lieu Conjunctive Use effort has two primary objectives as follows: a.Develop an integrated,comprehensive understanding of the geology and hydrology of the San Diego Formation and the overlying alluvial deposits.With this understanding,the sustainable yield of the San Diego Formation can be determined founded upon good science. b.Use this understanding to evaluate use ofthe alluvial deposits and the San Diego Formation for an in-lieu conjunctive use project for expanded extraction. 1.Sweetwater and Otay each have determined that it is in their respective best interest and in the interest of their customers and constituents to enter into this Agreement. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1.All exhibits attached to this Agreement constitute an integral part of this Agreement and are incorporated into the terms hereof. 2.The Parties will jointly and equally participate in any and all Phase I efforts of the Otay River Desal Project. Page 2 on SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project 3.The Parties agree to a 50 %cost share in any and all atay River DesaI Project Phase I efforts. 4.The Sweetwater and atay staff expenses,for implementation of the Phase I efforts,shall be paid for by each Party and not shared by or between the Parties and shall not be included or considered in each party's computation of its participation toward costs of the project. 5.The Phase I DWR grant amount for the atay River Basin Brackish Groundwater Desalination Study is $242,000.The combined Sweetwater and atay contribution is $257,000, for a total of $499,000 for the study.The Parties also agree to share equally in the additional cost of $100,000 for the USGS multi-depth monitoring well.This cost and correspQnding additional contribution is above and beyond the cost of the monitoring well that was included in the original grant application to DWR.Therefore,each Party agrees to pay a total of $178,500 as their portion of the study and monitoring well.A copy ofthe DWR agreement is attached as Exhibit B. 6.The Phase I SDCWA LISA grant amount for the U.S.Geological Survey Study of the San Diego Formation for Potential In-lieu Conjunctive Use concept is $1,500,000.The combined Sweetwater and atay contribution is $1,500,000,for a total of $3,000,000 for the study.Therefore,each Party agrees to pay a total of $750,000 as their portion of the study.A copy of the LISA agreement is attached as Exhibit C. 7.The Parties agree to pay for half of the USGS annual fee to maintain the five (5)existing multi-depth monitoring wells associated with the U.S.Geological Survey Study ofthe San Diego Formation.The annual costs are currently $55,000 for the five (5)monitoring wells. 8.The Parties agree to amend this Agreement as may be necessary to address any additional Phase I planning,feasibility,and groundwater studies,etc.efforts for the atay River DesaI Project that may arise.The Parties agree to negotiate and execute any required amendments to this Agreement in a timely fashion. 9.The Parties agree that a separate agreement will be entered into to establish the terms and conditions for the Phase II effort intended to consist of a pilot project,environmental,design, construction,operation,maintenance,replacement,and others conditions of the atay River DesaI treatment and transport facilities.In the event of any conflict between the terms of this Agreement and the separate agreement,the terms of this Agreement shall govern in connection with Phase I efforts and the terms of the other agreement will govern in connection with Phase II efforts.If,based on the results of Phase I,the Parties determine that Phase II efforts are required, the Parties agree to execute such an agreement in a timely fashion.This Agreement does not obligate either atay or Sweetwater to agree to proceed to Phase II. 10.In the event the Parties proceed to Phase II,the Parties will jointly and equally participate in any and all Phase II efforts of the atay River DesaI Project and share equally all aspects and outcomes such as costs,risks,outcomes,information,resulting water supply,and any other benefits. Page 3 of7 SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project 11.The Parties agree that this Agreement,by itself,is not a project subject to CEQA. 12.The current projected schedule for the Otay River DesaI Project is as follows: a.DWR grant study completion:June 30,2009 b.SDCWA LISA grant study completion:June 30,2010. c.Phase II pilot project,environmental and design completion:TBD d.Phase II construction complete:TBD e.Initiation of Otay River DesaI facility operations:TBD 13.The Parties shall seek,in good faith and within a reasonable time,to resolve any disputes regarding this Agreement first by meeting and conferring among two designated staff representatives,one each from Sweetwater and Otay.Any disputes that cannot be resolved by the staff representatives may be referred by either Party to the Sweetwater General Manager and to the Otay General Manager for resolution.Neither Party will resort to litigation until there is an impasse between the two General Managers. 14.The Parties shall bill each other as appropriate at the Gtay address of 2554 Sweetwater Springs Boulevard,Spring Valley,CA 91978-2096,Attention:James Peasley and at the Sweetwater Authority address of P.O.Box 2328,Chula Vista,CA 91912,Attention:Michael Garrod. 15.Payment shall be received at either Parties address listed on the invoice on or before 45 calendar days following receipt of the invoice by either Party after the date of execution of this Agreement. 16.In the event either Party fails to pay any amount when due,interest thereon shall accrue at the rate of ten percent per annum from the date when due until payment is received by either Party. 17.The term of this Agreement shall be for that time until when the Phase II agreement is fully executed by both Parties or this Agreement is terminated by mutual agreement. 18.Each Party agrees to indemnify, defend at its expense,including attorneys'fees,and hold the other harmless from and against all claims,costs,demands,losses,and liability of any nature whatsoever,including but not limited to liability for bodily injury,sickness,disease or death, property damage (including loss of use),or violation of law,caused by or arising out of any error,omission,negligent act,or willful misconduct of that Party,its officers,directors, employees,agents,volunteers,or any other person acting pursuant to its control in performing under this Agreement. Page 4 of? SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project 19.This Agreement,and any and all Exhibits attached to it,represent the entire understanding of the Parties as to those matters contained in it,and supersedes and cancels any prior oral or written understandings,promises,or representations with respect to those matters covered in it. 20.All Exhibits and Recitals contained herein are incorporated into this Agreement by this reference. 21.This Agreement will be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement,the action shall be brought in a state or federal court in the County of San Diego,State of California;provided that the dispute resolution procedure outlined in paragraph 22,below,has been completed. California law shall apply,without regard to any conflict of laws principles,to the interpretation of any provision of this Agreement. 22.This Agreement may be modified only by a subsequent written amendment executed by the Parties.Either Party may give notice that it wishes to amend this Agreement at any time with written notice.Any amendments will have to be mutually agreed upon by both Sweetwater and Otay,in writing. 23.If a dispute arises out of,or relates to this Agreement,or the breach thereof,which cannot be resolved by the Parties,the Parties will first submit to mandatory mediation under the Rules of the American Arbitration Association or any other neutral organization agreed upon before having recourse in a court of law.Any agreements resulting from mediation shall be documented in writing by all Parties.Mediation shall be confidential in accordance with the provisions of California law.All mediation results shall be "non-binding"and inadmissible for any purpose in any legal proceeding,unless all Parties otherwise agree upon such admission in writing. 24.No failure of a Party to insist upon the strict performance by the other of any covenant, term,or condition of this Agreement,nor any failure to exercise any right or remedy consequent upon a breach of any covenant,term,or condition of this Agreement,shall constitute a waiver of any such breach or of such covenant,term,or condition.No waiver of any breach shall affect or alter this Agreement,and each and every covenant,condition,and term hereof shall continue in full force and effect to any existing or subsequent breach. 25.None of the Parties shall assign its respective obligations under this Agreement without the prior written approval of the other Party.Any assignment in violation of this paragraph shall constitute a default by the Party attempting the assignment and is grounds for immediate termination of this Agreement or for the enforcement of any available equitable remedies,at the discretion of the other Party.In no event shall any putative assignment create a contractual relationship between the other Party and any putative assignee. 26.This Agreement and all rights and obligations contained herein shall be in effect whether or not any or all Parties to this Agreement have been succeeded by another entity,and all rights and obligations of the Parties shall be vested and binding on their successors-in-interest. Page 5 of? SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project 27.If the performance of any act required of the Parties is directly prevented or delayed by reason of strikes,lockouts,labor disputes,vandalism,terrorism or other criminal act,unusual governmental delays,acts of God,fire,floods,epidemics,freight embargoes,or other causes beyond the reasonable control of the Party required to perform an act,that Party shall be excused from performing that act for the period of time equal to the period oftime of the prevention or delay.In the event the Party claims the existence of such a delay,the Party claiming the delay shall notify the other Party in writing of that fact within 14 calendar days after the beginning of any such claimed delay. 28.The Parties agree that they have the right to be advised by counsel with respect to the negotiations,terms,and conditions of this Agreement,and the decision whether to seek advice of counsel with respect to this Agreement is the sole responsibility of each of the Parties.This Agreement shall not be construed in favor of or against any Party by reason of the extent to which each Party participated in the drafting ofthis Agreement. 29.In the event anyone of the provisions of this Agreement shall for any reason be held invalid,illegal,or unenforceable,the remaining provisions of this Agreement shall be unimpaired,and the invalid,illegal,or unenforceable provision(s)shall be replaced by a mutually acceptable provision which being valid,legal,and enforceable,comes closest to the intention of the Parties underlying the invalid,illegal,or unenforceable provision. 30.This Agreement may be executed in multiple counterparts,which when taken together shall constitute a single signed original as though all Parties had executed the same page. 31.If any part of this Agreement is abandoned or indefinitely delayed,due to circumstances beyond the control of the Parties,this Agreement may be terminated by the either Party. 32.Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office,certified mail,return receipt requested,postage prepaid,addressed to: Otay Water District General Manager 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2096 Sweetwater Authority General Manager 505 Garrett Avenue Chula Vista,CA 91910 and shall be effective upon receipt thereof. 33.This Agreement shall not be deemed to have been accepted and shall not be binding upon either Party until duly authorized officers of both Parties have executed it. Page 6 of7 SDPUB\CCOWETI\375742.2 Agreement Between Sweetwater Authority and Otay Water District for Joint Participation in the Otay River Groundwater Desalination Facility Project 34.The individuals executing this agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. IN WITNESS WHEREOF,the Parties have executed this Agreement as of the date first written above. Sweetwater Authority By:_ Mark Rogers General Manager Approved as to form and legality: Michael Cowett General Counsel Attachments:Exhibit A Exhibit B Exhibit C Otay Water District By:_ Mark Watton General Manager Approved as to form: Yuri A.Calderon General Counsel C:\DOCUME-l\MARGAR-l.ODO\LOCALS-l\Temp\MetaSave\SWEETWATER Agreement wOtay re Groundwater Desalination Facility Project_v2.doc Page7 of7 SDPUB\CCOWETT\375742.2 N A La Mesa OtqY R.iver 7i1::::iii._i::::=:::1..,5 .....2_Miles Exhibit "A" San Diego Formation 79,724 Acres Proposed Otay River Desalination Facility Lemon Grove Lake Murray Chula Vista San Ysicfro ~f.t<J -Q-,Iver Tijuana National City San Diego Imperial Beach San Diego Formation -Ota,y River Desalination Project EXHIBIT "B" Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater DesalinatiQn Study,Phase I STATE OF CALIFORNIA THE RESOURCES AGENCY DEPARTMENT OF WATER RESOURCES AGREEMENT BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES AND SWEETWATER AUTHORITY FORA WATER DESALINATION GRANT UNDER THE WATER SECURITY,CLEAN DRINKING WATER,COASTAL AND BEACH PROTECTION ACT OF 2002 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I SECTION 10.OPERATIONS AND MAINTENANCE OF "CONSTRUCTION"PROJECT In consideration of the State Grant,the Grantee agrees,for the useful life of the Project, for 5 years from the completion ofthe project,to expeditiously commence and to continue operation of the Project and shall cause the Project to be operated in an efficient and economical manner;shall provide for all repairs,renewals,and replacements necessary to the efficient operation of the Project;and shall cause the Project to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted.Refusal of the Grantee to operate and maintain the Project in accordance with this provision may,at the option of the State,be considered a material breach of contract and may be treated as default under default provisions Exhibit A-24. SECTION 11.RELATIONSHIPS OF PARTIES The Grantee,its contractors,subcontractors,and their respective agents and employees required for performing any work under this Agreement shall act in an independent capacity and not as officers,employees,or agents of the State. The Grantee is solely responsible for planning and implementation of the Project. Review or approval of plans,specifications,bid documents or other construction documents by the State is solely for the purpose of proper administration of State Grant funds and shall not be deemed to relieve or restrict the Grantee's responsibility. SECTION 12.PERMITS,LICENSES,APPROVALS AND LEGAL OBLIGATIONS The Grantee shall be responsible for obtaining any and all permits,licenses and approvals required for performing any work under this Agreement,including those necessary for planning and implementing the Project.The Grantee shall be responsible for complying with all applicable federal,State and local laws,rules or regulations affecting any such work,specifically including,but not limited to,environmental,labor, procurement and safety laws,rules,regulations and ordinances. SECTION 13.GRANTEE'S RESPONSIBILITIES FOR WORK The Grantee shall be responsible for work and for persons or entities engaged in work, including,but not limited to,subcontractors,suppliers and providers of services.The Grantee shall give personal supervision to any work required under this Agreement or employ a competent representative,satisfactory to the State,with the authority to act for the Grantee.The Grantee or its authorized representative shall be present while work is in progress.The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project,including but not limited to bid disputes and payment disputes with the Grantee's contractors and subcontractors.The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work. 4 f:! rIIi Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I SECTION 14.PROJECT OFFICIALS AND NOTICES The Acting Chief,Office of Water Use Efficiency and Transfers,Department of Water Resources,shall be the State's representative and shall have the authority to sign this Agreement and amendments to the Agreement,ifneeded,and to make determinations to each controversy or discrepancy arising under or in connection with the interpretation,performance,or payment for work performed under the Agreement. The Grantee Project Manager shall be JacK Adam .The Grantee Project Manager shall be the Grantee's representative for the administration of the Agreement and shall have full authority to act on behalf of the Grantee,including authority to execute all payment requests.All communications given to the Grantee Project Manager shall be as binding as if given to the Grantee. Either party may change its representative upon written notice to the other party. Notices required to be given to the State in writing by the Grantee under this Agreement shall generally be sent to: Fawzi Karajeh State of California Department of Water Resources Office of Water Use Efficiency and Transfers 901 P Street,Room 313A Post Office Box 942836 Sacramento,California 94236-0001 Notices required to be given to the Grantee in writing by the State under this Agreement shall be sent to: Dennis A.Bostad Sweetwater Authority 505 Garrett Avenue Chula Vista, California 91910 A change of address for delivery or notice may be made by either party by written notice of such change of address to the other party. All such notices shall be enclosed in a properly addressed,postage prepaid envelope and deposited in a United States Post Office for delivery by registered or certified mail. 5 Date Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I Approved as to Legal Form and Sufficiency: B;j:r~~7!1&1at- David A.Sandino,Acting Chief Counsel Date Department of Water Resources SWEETWATER AUTHORITY 505 Garrett Avenue Chula Vista,California 91910 P.O.Box 2328 Chula Vista,California 91912-2328 CES ctlng Chief,Office of Water Use Efficiency and Transfers IN WITNESS WHEREOF,the parties hereto have executed this Agreement on 7/2 ¥/:J{j):}- 6 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I STATE OF CALIFORNIA THE RESOURCES AGENCY DEPARTMENT OF WATER RESOURCES EXHIBIT A STANDARD TERMS WATER DESALINATION GRANT A-1.GOVERNING LAW:This Agreement shall be construed and governed pursuant to the laws of the State of California. A-2.TIMELINESS:Time is of the essence in this Agreement. A-3.AMENDMENT:This Agreement may be amended at any time by mutual agreement of the parties,except insofar as any proposed amendments are in any way contrary to applicable law.Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. A-4.SUCCESSORS AND ASSIGNS:This Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties hereto.No assignment or transfer of this Agreement or any part thereof,rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by the State and made subject to such reasonable terms and conditions as the State may impose. A-5.ELIGIBLE PROJECT COSTS:Grantee shall apply State Grant funds received only to Eligible Project Costs as identified in Exhibit C. A-6.CONDITIONS FOR DISBURSEMENT:The State shall have no obligation to disburse money under this Agreement unless and until the Grantee has satisfied the State that the disbursement is in accordance with the tasks and budget as detailed in Exhibit B and Exhibit C as well as the requirements of the Water Security,Clean Drinking Water,Coastal and Beach Protection Act,Chapter 6, Section 79545(a)which include: (a)For Construction Projects,the Grantee submits to the State,final plans and specifications certified by a California Registered Civil Engineer or equivalent documentation as to compliance with the approved Project. 7 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I (b)The Grantee submits a written statement by an authorized representative that it has obtained all necessary permits,easements,rights-of-way and approvals as may be required by other state,federal,and/or local agencies,as specified in Section 12 of this Agreement. (c)The Grantee demonstrates compliance with the California Environmental Quality Act and the National Environmental Policy Act by submitting copies of any environmental documents,including environmental impact reports,environmental impact statements,negative declarations, mitigation agreements,legal notices and environmental permits as may be required prior to beginning the Project. (d)The Grantee submits timely periodic progress reports as required by Section 8 of this Agreement. (e)The Grantee demonstrates continuing availability of sufficient funds to complete the Project. A-Y.STATE GRANT DISBURSEMENTS: (a)Cost Statements:After the Conditions for Disbursement,Section A-6,are met,the State will disburse the whole or portions of the State Grant commitment to the Grantee following receipt from the Grantee of a statement or statements of incurred Eligible Project Costs,reviewed by the Grantee's designated representative,and timely progress reports as required by Section 8 of this Agreement.Requests for State Grant funds shall be filed quarterly or for such periods as the State and the Grantee may mutually agree.The Grantee shall provide the following information: 1.A statement of the incurred Eligible Project Costs for work performed under the Agreement during the period identified in the particular statement and which matches the Budget in Exhibit C and tasks in Exhibit B. 2.A statement of the cost of any interests in real property (land or easements)that have been necessarily acquired for the Project during the period identified in the particular statement for the implementation of the Project. 8 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I The Grantee shall submit two (2)copies of quarterly progress reports and 2 copies of statement of costs associated with work accomplished during that quarter,as well as 2 copies of invoice to: Fawzi Karajeh Department of Water Resources Office of Water Use Efficiency and Transfers 901 P Street,Room 313A P.O.Box 942836 Sacramento,CA 94236-0001 The statement of costs must be detailed and provide supporting documentation for both State and Local Share of costs for each quarterly progress report.Statement of costs shall be submitted in arrears,bearing the Agreement number. The Grantee must also submit one (1)original copy of each invoice simultaneously to: DWR Accounting Office Contracts Payable Unit Post Office Box 942836 Sacramento,CA 94236 All progress reports,statement of costs,and invoices must be on the Grantee's letterhead,have agency name,project title,Agreement number, invoice number,and the quarter and tasks for which progress reports and invoices cover. Along with submittal of Draft Final Report,Grantee shall submit to the State a final statement of costs for incurred Eligible Project Costs,within 90 days of the termination date of the agreement. (b)Disbursement:Disbursements are subject to the availability of funds and budget contingencies.Following the review and approval of each statement of costs,the State will disburse to the Grantee the amount approved,subject to the availability offunds through the State's normal procedures.Funds will be disbursed by the State in response to each approved statement of costs on a pro rata basis in accordance with the relative payment obligations ofthe Grantee,Section 5 of this Agreement, and the State,Section 4 of this Agreement for the Project Costs,Section 3 of this Agreement.Any and all money disbursed to the Grantee under this Agreement and any and all interest earned by the Grantee on such money shall be used solely to pay Eligible Project Costs. 9 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I A-8.WITHHOLDING OF GRANT DISBURSEMENTS BY STATE (a)Withholding clause:The State,at its discretion,may withhold ten percent (10%)of the funds requested by the Grantee for reimbursement of eligible Project Costs until the Project is completed and Final Report is received. (b)Additional Conditions for Withholding:If the State determines that the Project is not being completed substantially in accordance with the provisions of this Agreement or that the Grantee has failed in any other respect to comply substantially with the provisions of this Agreement,and if the Grantee does not remedy any such failure,the State may withhold from the Grantee all or any portion of the State Grant commitment and take any other action that it deems necessary to protect its interests. (c)Withholding Entire State Grant Commitment:Ifthe State notifies the Grantee of its decision to withhold all of the State Grant commitment from the Grantee pursuant to Subdivision (b)of this Article,this Agreement shall terminate upon receipt of such notice by the Grantee and shall no longer be binding on either party. (d)Notwithstanding any other provision to the contrary in this agreement,if the agreement is terminated for any reason,State shall reimburse Grantee for all costs incurred by Grantee per the Statement of Work and Budget as shown in Exhibit B up to the termination date,including without limitation, all uncancelable obligations. A-g.TIMING AND MANNER OF PROJECT UNDERTAKING (a)Project Undertaking Pursuant to Agreement:The Project shall be undertaken in strict accordance with this Agreement. (b)Determination of Project Completion:For the purposes of this Agreement, once the entire statement ofwork has been finished by the Grantee,the Project shall be considered to be completed. (c)Acknowledgement of Credit:The Grantee shall include appropriate acknowledgement of credit to the State and to all cost-sharing partners for their support when promoting the Project or using any data and/or information developed under the Agreement. 10 I IiI Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalin<'jtion Study,Phase I (d)Audit Requirement:Pursuant to Government Code Section 8546.7,the contracting parties shall be subject to the examination and audit of the State for a period of three (3)years after final payment under this Agreement with respect to all matters connected with the performance of this Agreement,including but not limited to,the cost of administering this Agreement.All records of the Grantee or subcontractors shall be preserved for this purpose for at least three (3)years after completion of the Project.Completion of the project herein includes the submittal of a satisfactory final report. (e)Competitive Bidding of Contracts and Procurements: Grantee shall comply with all applicable laws and regulations regarding securing competitive bids and undertaking competitive negotiations in Grantee's contracts with other entities for acquisition of goods,and services and construction of public works with funds provided by the State under this Agreement. (f)Final Inspection and Certification of Registered Civil Engineer (Construction Projects):Upon completion of the Project the Grantee shall provide for a final inspection and certification by a California Registered Civil Engineer that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Agreement.The Grantee shall notify the Office of Water Use Efficiency and Transfers,Department of Water Resources,of the inspection date at least 10 days prior to the inspection in order to provide the State the opportunity to participate in the inspection. A-10.ACCOUNTING AND DEPOSIT OF GRANT DISBURSEMENT: (a)Separate Accounting of State Grant Disbursements and Interest Records The Grantee shall account for the money disbursed pursuant to this Agreement separately from all other Grantee's funds.The Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices,consistently applied.The Grantee shall keep complete and accurate records of all receipts,disbursements,and interest earned on expenditures of such funds.The Grantee shall require its contractors or subcontractors to maintain books,records,and other documents pertinent to their work in accordance with generally accepted accounting principles and practices.Records are subject to inspection by the State at any and all reasonable times. 11 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I (b)Disposition of Money Disbursed All money disbursed pursuant to this Agreement shall be deposited, administered,and accounted for pursuant to the provisions of applicable law. (c)Remittance of Unexpended Funds The Grantee,within a period of thirty (30)days from the final disbursement from the State to the Grantee of State Grant funds,shall remit to the State any unexpended funds that were disbursed to the Grantee under this Agreement and were not needed to pay Eligible Project Costs. (d)Interim and Final Audits The State reserves the right to conduct an audit at any time between the execution of this Agreement and the completion of the Project,with the costs of such audit borne by the State.After completion ofthe Project,the State may require the Grantee to conduct a final audit,at the State's expense,such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by the Grantee to comply with this provision shall be considered a substantial failure to comply with this Agreement,and the State may elect to pursue any remedies provided in Exhibit A-24 or take any other action it deems necessary to protect its interests. A-11.CLAIMS DISPUTE CLAUSE:Any claim that the Grantee may have regarding the performance of this agreement including,but not limited to,claims for additional compensation or extension oftime,shall be submitted to the Project Manager,Department of Water Resources,within thirty (30)days of the Grantee's knowledge of the claim.Project Director shall then attempt to negotiate a resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution. A-12.REMEDIES NOT EXCLUSIVE:The use by either party of any remedy specified herein for the enforcement of this agreement is not exclusive and shall not deprive the party using such remedy of,or limit the application of any other remedy provided by law. A-13.STATE TO BE HELD HARMLESS:The Grantee agrees to indemnify,defend and hold harmless the State and its officers,agents and employees from any and all claims,demands,damages,losses,costs,expenses,or liability due or incident to,either in whole or in part,and whether directly or indirectly,arising out of the performance of this Agreement to the extent caused by the Grantee. 12 [ i r f! ~:I.: Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalina!ion Study,Phase I A-14.INSPECTION OF BOOKS,RECORDS,AND REPORTS:During regular office hours,each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any financial books,records,or reports of either party pertaining to this Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs,disbursements,and receipts with respect to its activities under this Agreement.Failure or refusal by the Grantee to comply with this provision shall be considered a substantial failure to comply with this Agreement and the State may withhold disbursements to the Grantee or take any other action it deems necessary to protect its interests. A-15.INSPECTIONS OF PROJECT BY STATE:The State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Agreement.This right shall extend to any subcontracts,and the Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Agreement with the State. A-16.PROHIBITION AGAINST DISPOSAL OF PROPERTY WITHOUT STATE PERMISSION:The Grantee shall not sell,abandon,lease,transfer,exchange, mortgage,hypothecate,or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project,without prior permission of the State.The Grantee shall not take any action,including but not limited to actions relating to user fees,charges,and assessments that could adversely affect the ability of the Grantee to meet its obligations under this Agreement,without prior written permission of the State. The State may require that the proceeds from the disposition of any real property be remitted to the State up to the amount of the grant if such disposition occurs within 5 years of the completion of the project.For the purposes of this paragraph,the State's permission shall not be unreasonably withheld. A-17.NO THIRD PARTY RIGHTS:The parties to this Agreement do not intend to create rights in,or grant remedies to,any third party as a beneficiary of this Agreement,or of any duty,covenant,obligation or undertaking established herein. A-18.NOTICES:All notices that are required either expressly or by implications to be given by one party to the other underthis Agreement shall be signed for the Project Manager and for the Grantee by such officers,as from time to time,it may authorize in writing to so act.All such notices shall be deemed to have been given ifdelivered personally or if enclosed in a properly addressed postage-prepaid envelope and deposited in a United States Post Office for delivery by registered or certified mail. 13 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I A-19.PERFORMANCE AND ASSURANCES:Grantee agrees to faithfully and expeditiously perform or cause to be performed all Project work as described in the final plans and specifications as submitted or as later amended and approved by the State under this Agreement and to apply State funds received only to Eligible Project Costs and to operate and maintain the Project in accordance with applicable provisions of the law.The State reserves the right to seek further written assurances from the Grantee that the work of the Project under this Agreement will be performed consistent with the terms of this Agreement. A-20.SEVERABILITY:In the event that any provision of this Agreement is unenforceable or held to be unenforceable,then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. A-21.WAIVER OF RIGHTS:None of the provisions ofthis Agreement shall be deemed waived unless expressly waived in writing.It is the intention of the parties hereto that from time to time either party may waive any of its rights under this Agreement unless contrary to law.Any waiver by either party hereto of rights arising in connection with this Agreement shall not be deemed to be a waiver with respect to any other rights or matters,and such provisions shall continue in full force and effect. A-22.TERMINATION WITHOUT CAUSE:The State may terminate this Agreement without cause on 30 days advance written notice.The Grantee shall be reimbursed for all reasonable expenses incurred,including uncancelable obligations,up to the date of termination. A-23.TERMINATION FOR CAUSE:The Grantee may terminate this Agreement for cause on 30 days advance notice.The State may terminate this Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Agreement at the time and in the manner herein provided including but not limited to reasons of default under Exhibit A-24.The Grantee shall be reimbursed for all reasonable expenses incurred,including uncancelable obligations,up to the effective date of termination. A-24.DEFAULT PROVISIONS: (a)The grantee will be in default under this agreement if any of the following occur: 1.Substantial breach of this Agreement,or any supplement or amendment to it; 2.Making any false warranty,representation,or statement with respect to this Agreement; 14 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I (b)Should an event of default occur,the State may do any or all of the following: 1.Terminate any obligation to make future payments to the Grantee, with the qualifications as set forth in Exhibit A-22 and A-23; 2.Terminate the Agreement;and 3.Take any other action that it deems necessary to protect its interests. (c) Both parties agree that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to a party as a result of a breach ofthis Agreement by either party. (d)No waiver by either party of any breach or default will be a waiver of any breach or default occurring later.A waiver will be valid only if signed by the State or its authorized agent. A-25.CONFLICT OF INTEREST: (a)Current State Employees: 1.No State officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency,unless the employment,activity or enterprise is required as a condition of regular State employment. 2.No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services. (b)Former State Employees: 1.For the two year period from the date he or she left State employment,no former State officer or employee may enter into an agreement in which he or she engaged in any ofthe negotiations, transactions,planning,arrangements orany part of the decision- making process relevant to the agreement while employed in any capacity by any State agency. 15 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I 2.For the twelve-month period from the date he or she left State employment,no former State officer or employee may enter into an agreement with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed agreement within the twelve-month period prior to his or her leaving State service. A-26.WORKERS'COMPENSATION CLAUSE:The Grantee affirms that it is aware of the provisions of Section 3700 of the California Labor Code,which require every employer to be insured against liability for workers'compensation or to undertake self-insurance in accordance with the provisions of that code,and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision. A-27.AMERICANS WITH DISABILITIES ACT:By signing this Agreement,Grantee assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990,(42 U.S.C.12101 et seq.),which prohibits discrimination on the basis of disability,as well as all applicable regulations and guidelines issued pursuant to the ADA. A-28.DRUG-FREE WORKPLACE CERTIFICATION: (a)Certification of Compliance By signing this Agreement,the Grantee,its contractors or subcontractors hereby certify under penalty of perjury under the laws of the State of Califomia compliance with the requirements of the Drug-Free Workplace Act of 1990 (Government Code 8350 et seq.)and have or will provide a drug-free workplace by taking the following actions: 1.Publish a statement notifying employees,contractors and subcontractors that unlawful manufacture,distribution, dispensation,possession,or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors or subcontractors for violations,as required by Government Code Section 8355(a). 2.Establish a Drug-Free Awareness Program,as required by Government Code Section 8355(b)to inform employees, contractors and subcontractors about all of the following: a.The dangers of drug abuse in the workplace, 16 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I b.The Grantee's policy of maintaining a drug-free workplace, '-I/~I.~l,l'II:I: c. d. Any available counseling,rehabilitation and employee assistance programs,and Penalties that may be imposed upon employees,contractors or subcontractors for drug abuse violations. 3.Provide,as required by Government Code Section 8355(c),that every employee,contractor and subcontractor who works under this Agreement: a.Will receive a copy of the Grantee's drug-free policy statement,and b.Will agree to abide by terms of the Grantee's condition of employment,contract or subcontract. (b)Suspension of Payments:This Agreement or State Grant may be subject to termination per Exhibit A-23 and A-24,and the Grantee may be subject to debarment if the Department determines that: 1.The Grantee,its contractors or subcontractors have made a false certification,or; 2.Grantee,its contractors or subcontractors violates the certification by failing to carry out the requirements noted above. A-29.NONDISCRIMINATION CLAUSE:During the performance of this Agreement, the Grantee,its contractors and subcontractors shall not deny the Agreement's benefits to any person on the basis of religion,color,ethnic group identification, sex,age,physical or mental disability,nor shall they discriminate unlawfully against any employee or applicant for employment because of race,religion, color,national origin,ancestry,physical handicap,mental disability,medical condition,marital status,age,or sex.The Grantee shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The Grantee,its contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code,Section 12900 et seq.),the regulations promulgated thereunder (California Code of Regulations, Title 2,Section 7285.0 et seq.),the provisions of Article 9.5,Chapter 1,Part 1, Division 3,Title 2 of the Government Code (Government Code,Sections 11135-11139.5)and the regulations or standards adopted by the awarding State Agency to implement such article.The Grantee shall provide notice to its 17 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I contractors and subcontractors that they are also required to comply with the provisions and regulations described in this paragraph. The Grantee,its contractors and subcontractors shall give written notice of their obligations under this clause to notify labor organizations with which they have a collective bargaining or other agreement. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under the Agreement. The Grantee's signature on this Agreement shall constitute a certification under the penalty of perjury under the laws of the State of California that the Grantee has,unless exempted,complied with the nondiscrimination program requirements of Government Code,Section 12990,and Title 2,California Code of Regulations,Section 8103. A-3D.UNION ORGANIZING:No State funds disbursed by this State Grant will be used to assist,promote,or deter union organizing.If Grantee makes expenditures to assist,promote,or deter union organizing,Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request. 18 'I Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I EXHIBIT B STATEMENT OF WORK DWR 10:F 2006·03 SWEETWATER AUTHORITY PROJECT DESCRIPTION This is a $242,000 agreement between Sweetwater Authority (Sweetwater)and Department of Water Resources (DWR)to conduct a desalination feasibility study.The total estimated budget of the brackish water feasibility study is $499,000.DWR share through this agreement with Sweetwater is $242,000. The purpose of the Otay River Basin Brackish Groundwater Desalination Project is to determine the feasibility of extracting brackish groundwater from the San Diego Formation (SDF)where it underlies the Otay River Basin,treat it at a new desalination facility,and deliverthe potable water to customers of both Sweetwater and Otay Water District (the Districts),who are partnering on this project.The first phase of the study is to collect necessary geologic,groundwater and water quality data that can be used to determine the characteristics of the aquifer and to develop a solidified plan for completing a project that could potentially yield four (4)million gallons per day (mgd)of desalinated potable water. The achievable goals of this Project are to: •Obtain valuable well data that can be used to determine the hydrogeological conditions of the SDF in the Otay River Basin. •Determine the water quality of the aquifer in this region. •Conceptually layout the facilities and costs needed to collect,treat and deliver desalinated water to potable water customers of the Districts. •Develop a long-term monitoring program for well development and an implementation plan that clearly identifies the steps needed to complete the ultimate project. The DWR funding will permit the Districts to complete a significant step towards developing,through the use of desalination technologies,a new potable water source from brackish groundwater that is currently not used. The SDF extends from the California-Mexico border to near Mission Bay in San Diego County,a distance of approximately 16 miles from the coast,and approximately 5-6 miles inland.What is known about the SDF is that the geology is complex and at present only partly understood.The heterogeneity of the aquifer makes it extremely difficult to accurately predict groundwater flow or well performance.Few,if any, 19 Agreement 4600007432 Sweetwater Authority Olay River Basin Brackish Groundwater Desalination Study,Phase I investigations have been performed on the SDF in the Otay River Basin (previous wells had been measured at 2,000 milligram per liter [mgtl]total dissolved solids).Most of the knowledge is based in and adjacent to the Sweetwater River Valley and in the Tijuana River Valley.Therefore,this project will produce valuable and useful data to aid in characterizing the SDF that could ultimately lead to the production of potable water in the Otay River Basin. Sweetwater has successfully developed a brackish groundwater desalinated water facility,the Reynolds Groundwater Desalination Plant (Reynolds),in the Sweetwater River Valley that produced 1,986 acre-feet of potable water in 2005 and is expected to produce up to 4,400 acre-feet per year by 2010.Sweetwater and its existing and proposed groundwater desalination projects are compliant with the Groundwater Quality Monitoring Act of 2001 (AB 599).Sweetwater participated in the Groundwater Ambient Monitoring Assessment (GAMA)program in 2005.This program was implemented by the California State Water Resources Control Board to satisfy the Groundwater Quality Monitoring Act of 2001.Additionally,Sweetwater is committed to continue their relationship with the GAMA project in the future. Otay Water District (Otay)imports 100%of its potable water from the San Diego County Water Authority,the wholesale supplier for the region.To date,they have been unsuccessful in attempts to develop groundwater resources in their service area,and stated in their 2005 Urban Water Management Plan that the SDF is of particular interest to them and other agencies.With Sweetwater taking the lead on this project,their experience will enable the implementation of an economical and environmentally acceptable project. The Districts are both implementing conservation and recycling programs within their service areas to the maximum extent practicable.They are signatories to the "Memorandum of Understanding (MOU)Regarding Urban Water Conservation in California"and actively implement the fourteen best management practices of the California Urban Water Conservation Council.They are committed to water conservation,knowing that water conservation is the best way to protect their water supply resources.Otay also owns and operates the Ralph W.Chapman Water Reclamation Facility that produces 1.1 mgd of recycled water and has signed an agreement with the City of San Diego to purchase an average of at least 6 mgd of recycled water from their South Bay Water Reclamation Plant.Otay continues to expand its recycled water system and has one of the largest distribution systems for recycled water in San Diego County. Benefits to be gained by Phase I alone include increasing the data available on the SDF and providing this information to the U.S.Geological Survey (USGS)to include in their current study of the SDF.This will allow USGS to better characterize the whole aquifer and its potential and will be a valuable resource to the entire region.This proposed project will help advance desalination technology by providing an implementation plan for the development of new potable water supplies through brackish groundwater desalination that would be applicable for other water purveyors.With the water quality 20 ! f'Lr'1:: IiI'IiI, Ii Ii fi r l,'.,i': 1,I~! ri II'I :1f: Ir~. Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I data from the proposed wells and transferring the experience from the Reynolds Desalination Plant,the feedwater treatment processes and strategies will be improved. The proposed desalination facility will utilize new,low pressure reverse osmosis membranes that will reduce power costs over the Reynolds facility.Should the Otay River Basin prove feasible,beach wells for additional feedwater intake will be studied as part of a subsequent phase of the project. PROJECT OBJECTIVES,TASKS,AND SERVICES TO BE PERFORMED The project plan of this agreement will be performed primarily by consultants to Sweetwater and consists of the tasks,deliverables,and project costs shown below. 1.Collect and Review Available Geologic and Groundwater Data and Reports (Task Budget =$12,000) This task consists of collecting and reviewing prior studies and reports and any well data available.Sources of information include the Sweetwater,Otay, San Diego County Water Authority,USGS,DWR,and the County of San Diego. This includes meeting with operating staff of Reynolds to document areas of known improvements to be applied to an Otay River Groundwater Desalination Plant. 2.Conceptual Facilities Layout and Preliminary Construction Costs:Well, Collection,Treatment,Distribution and Brine Disposal (Task Budget = $105,000)-Deliverable =Conceptual Facility Plans (11x 17)and Cost Estimates The facilities envisioned for the ultimate constructed project will be conceptually designed and construction costs estimated.This includes sitting the groundwater well(s),collection system,desalinated water treatment plant,product water delivery system,and brine disposal facilities (brine disposal will be coordinated with Sweetwater's proposed brine disposal study).It is envisioned that the desalination facility will be similar to Reynolds,modified by lessons learned at Reynolds. 3.Design and Construct MonitoringlTest Well(s)-(Task Budget =$300,000) Prepare design plans and obtain County of San Diego Environmental Health Department permit to drill new wells.Construct two monitoring/test wells in the Otay River Basin. 4.Geologist Logs,Evaluate Borings and Monitoring (Task Budget =$9,000)- Deliverable =Database of all Logs,Test and Monitoring Data Collected The purpose of this task is to obtain lithologic logging,geophysical logging,soil samples,aquifer pumping tests,sieve analysis,infiltration testing data and to 21 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I monitor groundwater levels.This work is essential to begin to understand the nature of the SDF in the Otay River Basin.The data collected will be provided to USGS for them to add to the data they have already collected on the SDF and help them to determine its safe yield. 5.Conduct Water Quality Analyses (Task Budget =$13,000)-Deliverable = Water Quality Laboratory Test Results Conduct water quality analyses to determine the groundwater quality in the test wells.Groundwater constituents will be identified and the laboratory test results will be entered into a Water Quality Data Log.The water quality information will help in determining the processes and operating conditions required at the desalinated water treatment plant to meet drinking water standards. 6.Prepare Environmental Initial Study (Task Budget =$8,000)-Deliverable = Environmental Initial Study will be included with the Task 8 deliverable This task will complete an Environmental Initial Study based upon the Conceptual Facilities Layouts.The type of environmental document that will be required for the ultimate project will be identified,along with the potential regulatory permits/approvals. 7.Develop Long-Term Well Monitoring and Development Program and Project Implementation Plan (Task Budget =$13,000)-Deliverable =Will be delivered with Task 8 Report Under this task,a Long-Term Well Monitoring and Development Program will be created to identify what should be monitored over time and how the wells should be developed to generate the most useful data and/or best yield from them.A Project Implementation Plan will also be created that will define the steps to be taken in order to construct the ultimate project.These plans are essential for the ultimate understanding of the nature of the SDF in the Otay River Basin and for the safe yield of brackish groundwater. 8.Summarize Findings in a Report (Task Budget =$25,000)-Deliverables = Draft and Final Phase I Study The purpose ofthis task is to develop the final report,which will describe in detail the procedures used to implement the study and all findings.It will include the Conceptual Facilities Layouts,cost estimates,well data,water quality data, Environmental Initial Study, Long-Term Well Monitoring and Development Program and the Project Implementation Plan.A draft and final report will be prepared under this task. 22 H: Ii'r,' Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalina~on Study,Phase I 9.Project Management (Task Budget =$14,000)-Deliverable =DWR Reports Sweetwater's consultant will assume primary responsibility for Project Management activities,including budget and schedule tracking,resource management,performance monitoring,quality control and communication between project team members.Sweetwater will assume primary responsibility for communicating with the consultant and reporting to DWR. 23 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study.Phase I PROJECT DELIVERIES ID TaskNJm.I S1Qrt I Tue71'3107 Mon 1 12l3U07 -:-Ccm:eptull!F£lciiitesLayoula. Cost EftimJte T"D.sign &C~5tllJ:tMaMar~g Te51'~Ve:'$ 7"~dOli;ai~ag.E~~u~te8vnllgs3.tl!cr::tor I',e:s T Preem.Err,ruon"n:.llnIi,1 SI""y i Lar1·TemlMc~Ionng &De'/, Pnrll.&Pm]ImpternentitOTl Pin. T Pr.~Rel'lrt ofF~drgs (if<tludes T~5k7&:Ot Tue !!lit~Wed 12J3U05 Tue illi,e Wed 12131105 Thu IIll"W.d71i!C~ Thu il2i03 Fn WiD Thuil2iO,.,.';;d6130110 'Nedill,iQ9 ',Ved6!3Q1iO Tu:ii~-i07 \Ved 6,'3Q!1O i11I•••••III1.IIIlIlIlIl.~Deir"'able ! , (t~.II•••••II••!Il•••III1lIl.II.'III11••IlIlIl••III1••••II.IIIi1.I!~) .__._-.._---------_...__._--_.-'--_._----_._---_.._-----_.'------,------_._-------_.-._-- 24 Agreement 4600007432 SweetwaterAuthority Otay River Basin Brackish Groundwater Desalination Study,Phase I PROJECT ASSESSMENT AND MONITORING Through progress,annual,final reports,and field visits,DWR staff will monitor and assess the project in terms of providing the projected new or alternative potable water supplies. 25 Agreement 4600007432 Sweetwater Authority Otay River Basin Brackish Groundwater Desalination Study,Phase I EXHIBIT C BUDGET DWR 10:F 2006·03 SWEETWATER AUTHORITY Non State State Share Total Budget Category Share (Grant)Project (I)(II)(III)Costs (IV)= (11+11I) (a)Administration: Salaries,wages $2,800 $2,800 Fringe benefits $110 $110 Supplies Equipment Consulting services $5,000 $5,000 $10,000 Travel (b)PlanningfDesign/Engineering $35,000 $35,000 $70,000 (c)Equipment Purchases/Rentals/ RebatesNouchers (d)Materials/lnstallation/lmplementation (e)Implementation Verification (f)Project Legal/License Fees $500 $500 $1,000 (9)Structures (h)Land Purchase/Easement (i)Environmental Compliance/Mitigation/Enhancement $4,000 $4,000 $8,000 (j)Construction $150,000 $150,000 $300,000 (k)Other (specify)(Water Quality LabTests)$5,000 $5,000 $10,000 (I)Monitoring and Assessment $4,500 $4,500 $9,000 (m)ReportPreparation $16,000 $16,000 $32,000 (n)SUBTOTAL (a+•••+m)$222,910 $220,000 $442,910 (0)Overhead $11,799 $11,799 (p)Contingency (specify %used)(10%)$22,291 $22,000 $44,291 (q)TOTAL (n +0 +p)$257,000 $242,000 $499,000 26 EXHIBIT "e"SCANNED 5])c 'Jjl~ JOINT PARTICIPATION AGREEMENT FOR LOCAL INVESTIGATIONS AND STUDIES ASSISTANCE PROGRAM FUNDING BETWEEN c-(-1 J ---'-7 -'jSAN01EGOCOUNTYWATERAUTHORITY~;/-'7/;~.-.:.,,)-d .:; AND SWEETWATER AUTHORITY THIS AGREEMENT is made this \L~'-day of lklifl\\,(2007,between the San Diego County Water Authority,a county water authority (Water Authority)and the Sweetwater Authority,a joint powers agency (Lead Agency)with respect to the following facts: RECITALS 1.The Water Authority has established the Local Investigations and Studies Assistance Program (LISA Program),for the purpose of facilitating local agency studies and investigations of new local water supply opportunities. 2~The purpose of the LISA Program is to encourage,through assistance in project funding,local groundwater conjunctive-use studies and investigations that could lead to local water supply projects that prOVide new annual core (baseload)supplies or increased dry-year supplies. a.On June 28,2007,the Water Authority Board of Directors approved the first funding cycle for the LISA Program. 4,The Lead Agency and the Otay Water District (Co-applicant)are conducting a study of the San Diego Formation titled "U.S.Geological Survey Study ofthe San Diego Formation for Potential In-lieu Conjunctive Use"(StUdy)to evaluate the potential for groundwater conjunctive-use operations in that southern portion of the San Diego Formation that underlies the Sweetwater Authority service area.The primary objectives of the Study are:(1)to develop an integrated,comprehensive understanding ofthe geology and hydrology of the San Diego Formation,including the sustainable yield of the formation,and (2) to use this understanding to evaluate expanded use,such as in-lieu 1 of 12 conjunctive use ofthe San Diego Formation.See Attachment A -Scope of Work for description of work to be performed under the Study. 5.Water Authority funding for this LISA Program Agreement is being derived from groundwater conjunctive-use funding provided by the State of California Department of Water Resources (DWR)as a result of the passage of S8 1765 (1998). 6.Studies receiving funding under this Agreement must be related to groundwater conjunctive use. Section 1.Term of Agreement The term of the Agreement begins at the date of execution of the Agreement and ends three (3)years from the date of execution.The final invoice for reimbursement must be submitted to the Water Authority for approval and payment within three (3)years and three (3)months from the date of the execution of the Agreement. Section 2.Work to be Performed Under this Agreement The approved scope of work,schedule,and budget for this Agreement is included as Attachment A -Scope of Work,Attachment B -Project Schedule, and Attachment C -Project Budget. Section 3.Amount of Funding and Agency Match The Water Authority Board has approved $1,500,000 in matching LISA Program Funds to be provided to the Lead Agency to conduct the Study.The Lead Agency match shall be equal to or greater than the total awarded funds under the LISA Program.Agency match must also be equal to or greater than 50 percent of the total project cost.Eligible Project matching funds are described in Section 4 2 of 12 below.The Lead Agency may designate as matching funds eligible expenditures for work conducted by the Lead Agency and Co-applicant for a period of up to two years prior to the date of the award of the grant,June 28,2007,but reimbursement is only authorized for work done on the Study after June 28,2007. Contributions to the Lead Agency and the Co-applicant from:1)private entities;and 2)public entities located outside the County of San Diego,including but not limited to the Metropolitan Water District of Southern California,the U.S.Bureau of Reclamation,U.S.Environmental Protection Agency,California Energy Commission,American Waterworks Association,etc.,shall be subtracted from the cost of the Study for the purposes of calculating eligible reimbursable funds,LISA Program grant matching requirements,and total project cost. Section 4.Eligible Agency Matching Funds Eligible matching funds include expenditures for third party costs or in-kind specialized services conducted in-house by either the Lead Agency or Co-applicant. Overhead and general administrative services do not qualify as in-kind matching funds.Third party costs include subcontractor work for technical support services. In-kind specialized services include technical services such as GIS,environmental review,lab work,field monitoring,and direct costs for project management.Third party costs also include qualifying expenditures by the Co-applicant. The Water Authority retains sole discretion to determine eligible matching funds based on criteria identified above.The Water Authority shall not unreasonably deny eligibility of Lead Agency or Co-applicant matching funds. Section 5.Funding Documentation Before the Lead Agency can request reimbursement,the Lead Agency must submit the following documents: 3 of 12 a.Executed copies of any contract or agreement for professional services with respect to the Study. b.Proof of formal approval of the Study by its governing Board and expenditure of matching funds solely for the purpose of the Study.Proof of approval may be in the form of a copy of an adopted resolution,or minutes of a meeting of which a motion is adopted,and the copy is certified as a true copy of an official record ofthe agency. c.Documentation of expenditure of agency matching funds,including but not limited to,copies of consultant/contractor invoices and statements of agency in-house labor time and expenses (if applicable). Section 6.Disbursement Conditions Funding of this Agreement is contingent upon receipt by the Water Authority of funds for the Study from the California Department of Water Resources (DWR), administered under Senate Bill 1765.It the State does not appropriate sufficient funds for this program during the current year or any subsequent years covered under this Agreement,this Agreement shall be null and void.In that event,the Water Authority will have no liability to pay any funds to the Lead Agency.If payment of invoices for reimbursement is denied by DWR,the Water Authority will have no liability to pay those funds to the Lead Agency. Matching funds must be expended first before reimbursement is requested. The Lead Agency shall submit invoices to the Water Authority on a quarterly basis. The Water Authority will prepare and submit invoices to DWR for reimbursement to Lead Agency after the following has been completed by the Lead Agency: For each quarterly invoice,the Lead Agency shall submit the following: a.Four copies of the Quarterly Report and Statement of Costs,as specified in Section 8,for the period for which reimbursement is being requested. 4 of 12 I' I' II I: ~i b.One original invoice and three (3)copies from the Lead Agency requesting reimbursement. c.Four copies of consultant/contractor paid invoices and documentation of.payment of those invoices;documentation of in-house labor time and expenses (if applicable)for work conducted during the quarter;and any bills of materials. Payment of.Lead Agency invoices for reimbursement is contingent upon ability ofthe Lead Agency and the Water Authority to meet and comply with DWR Exhibit 0 -"Special Terms and Conditions for Department of Water Resources (Local Public Entities -Payables")and Exhibit E -"Additional Provisions"of DWR Agreement No.4600007621 with the Water Authority which are combined into Attachment F and made part ofthis agreement. Section 7.Co-Applicants Co-applicant for the Study is the Otay Water District.Sweetwater Authority shall be designated as the Lead Agency,and will bear responsibility for meeting the terms of this Agreement.Enforcement and all related correspondence of this Agreement shall be between the Water Authority and the Lead Agency only.The Lead Agency shall be responsible for submitting quarterly reports,invoices,and statement of costs for work conducted by the Lead Agency and the Co-applicant. Reimbursable funds will be distributed to the Lead Agency only. Section 8.Quarterly Progress Reports and Statement of Costs The Lead Agency shall submit quarterly progress reports,January 31,April 30,July 31,and October 31,on the status of the Study and a Statement of Costs. The Quarterly Progress Report shall include work completed during the previous quarter,anticipated work to be conducted during the next quarter,percent completion of tasks (as outlined in the approved schedule),and percent completion of the total Study.The Lead Agency shall use the reporting format as shown in Attachment D -Quarterly Progress Report. 5 of 12 Statement of Costs shall include the expenditures for the previous quarter and total expenditures to date.See Attachment E -Statement of Costs for example of Statement of Costs. Section 9.Performance Criteria The following performance criteria are established: a.Work on the approved scope must begin within six months of award of funding. b.Work on the approved scope must be completed within three (3)years of the date of execution of this Agreement. c.If the schedule lags for greater than two quarters from the schedule included as Attachment B,a meeting between the Lead Agency and Water Authority staff will be held to determine cause,remedies,and a possible amendment to the schedule or Agreement. d.If the schedule continues to lag for an additional two quarters,Water Authority staff will have a follow up meeting with Lead Agency staff to determine continued Viability of the Study. e.A report of the outcome of the meeting(s)and recommendations regarding the continued viability of the Agreement will be made to the Water Authority General Manager. Section 10.Withholding of Grant Disbursement by Water Authority If the Water Authority determines that the Study is not being completed in accordance with the Performance Criteria in Section 9 and in accordance with the provisions of the Agreement,or that the Lead Agency has failed in other respects to comply substantially with the provisions of this Agreement,the Water Authority will 6 of 12 demand compliance.If the Lead Agency does not remedy such failure to the Water Authority's satisfaction within a reasonable period,the Water Authority may withhold from the Lead Agency all or any portion of the Water Authority grant commitment and take any other action it deems necessary to protect its interest and to meet the goals of the LISA Program. Section 11.Acknowledgement of Credit In the Final Study Report,and when promoting the Study or using any data and/or information developed under the Agreement,the Lead Agency shall include appropriate acknowledgement of credit to DWR (as the funding source for the LISA Program),the Water Authority,and all cost-sharing partners for their support. Section 12.Audit Requirements Pursuant to Government Code Section 8546.7,the contracting parties shall be subject to the examination and audit for a period of three (3)years after the final payment under this Agreement with respect to all matters connected with the performance of this Agreement.All records of the Lead Agency and the Co- applicant,or their contractors or subcontractors,shall be preserved for this purpose for at least three (3)years after the completion of the Study. Section 13.Competitive Bidding of Contracts and Procurements The Lead Agency and Co-applicant shall comply with all applicable laws and regulations regarding securing competitive bids,payment of prevailing wages where applicable,and undertaking competitive negotiations in contracts for procurement of goods and services provided under this Agreement. Section 14.Amendments This Agreement may be amended at any time by mutual agreement of the parties,except insofar as any proposed amendments are in any way contrary to 7 of 12 applicable law.Requests by the Agency for amendments must be in writing stating the amendment request and the reason for the request. Any changes in project scope that are requested after the Water Authority Board has approved the funding recommendations must be submitted to the Water Authority for approval.If approved,Agreement shall be amended to reflect the scope change. Section 15.Relationships of Parties The Lead Agency,the Co-applicant,contractors,subcontractors,and their respective agents and employees required for performing work under this Agreement,shall act in an independent capacity and not as officers,employees,or agents of the Water Authority. Section 16.Project Officials and Notices The Director of Water Resources of the Water Authority shall be the Water Authority's representative and shall have the authority to sign agreements and amendments to the agreement if needed. The Lead Agency Project Manager shall be Michael E.Garrod.The Lead Agency Project Manager shall be Lead Agency's representative for the administration of the Agreement and shall have full authority to act on behalf of the Lead Agency,including authority to execute all payment requests.All communications given to the Lead Agency Project Manager shall be as binding as if given to the Lead Agency. Either party may change its Project Manager upon written notice to the other party.Notices required to be given to the Water Authority in writing by the Lead Agency under this Agreement shall be sent to: San Diego County Water Authority Attention:LISA Program Manger -Ken Weinberg 4677 Overland Avenue San Diego,CA 92117 8 of 12 fil: [ ~ Notices required to be given to the Lead Agency in writing by the Water Authority under this Agreement shall be sent to: Sweetwater Authority Attention:Michael E.Garrod,Project Manager P.O.Box 2328 Chula Vista,CA 91912-2328 A change of address for delivery or notice may be made by either party by written notice of such change of address to the other party. Section 17.Cooperation The Lead Agency will provide the Water Authority with Quarterly Progress Reports as specified in Section 8.The Lead Agency will provide the Water Authority with copies of the draft and Final Study Report and any interim documents for the Water Authority staff's review and input.The Lead Agency will provide the Water Authority with reasonable access to information being developed or secured for the Study and report purposes including,upon request of the Water Authority,an audit of costs associated with the Study. Water Authority reserves the right to conduct periodic review meetings with the Lead Agency and its project team.The purpose of these meetings is to provide a detailed update on Study progress,findings to date,and any challenges or other issues that have arisen during the Study. Section 18.Completion Within 90 days of the conclusion of the Study,the Lead Agency will submit to the Water Authority:(1)the final invoice for reimbursement;(2)final Statement of Costs;(3)Final Report;and (4)the Final Quarterly Progress Report.The Lead Agency shall furnish the Water Authority with two hardcopies of the final report and two electronic copies on CD. 9 of 12 Section 19.Defaults and Remedies Any claim the Lead Agency may have regarding the performance of this Agreement including,but not limited to,claims for extension of time,shall be submitted to the Water Authority Director of Water Resources within thirty (30)days of the Lead Agency's knowledge of the claim.The Water Authority and the Lead Agency shall then attempt to negotiate a resolution of such claim.If a resolution is reached,an amendment to this Agreement will be processed to implement the terms of such resolution. The use by either party of any remedy specified herein for the enforcement of this Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the applicability of,any other remedy provided by law. Section 20.Public Record All reports,including the Final Report,submitted as part ofthe Study fall under Government Code §6250 et.seq.are public records,and as such may be subject to public review. Section 21.Indemnity -Hold Harmless The Lead Agency agrees to defend,indemnify,and hold harmless the Water Authority,its officers,and employees,from all damage,injury,claims,demands, losses,and liability to the extent that the same are the result of conducting the Study, or the negligence or willful misconduct of the Lead Agency or any of its officers, employees or any other person acting pursuant to its control in performing the work under this Agreement. 10 of 12 Section 22.Laws and Venue This Agreement shall be interpreted in accordance with the laws of the state of California.If any action is brought to interpret or enforce any term of this Agreement,the action shall be brought in a state or federal court in the county of San Diego. Section 23.Assignment The Lead Agency shall not assign,sublet,or transfer this Agreement or any rights or interest in this Agreement without the written consent of the Water Authority, which m~y be withheld for any reason. Section 24.Integration This Agreement represents the entire understanding of the Water Authority and the Lead Agency as to those matters contained herein.No prior oral or written understanding should be of any force or effect with respect to those matters covered hereunder.This Agreement may not be modified or altered except in writing signed by the Water Authority and the Lead Agency. Section 25.Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, registered or certified,postage prepaid,addressed to: San Diego County Water Authority 4677 Overland Avenue San Diego,CA 92123 Attn:Ken Weinberg Director of Water Resources 11 of 12 Sweetwater Authority 505 Garrett Avenue Chula Vista,CA.91912-2328 Attn:Michael E.Garrod,P.E. Engineering Manager Section 26:Signatures The individuals executing this Agreement represent and warrant that they .have the legal capacity and authority to do so on behalf oftheir respective legal entities. "':1 I, IN WITNESS WHEREOF,the parties have executed this Agreement as of the date written above: SAN DIEGO COUNTY WATER AUTHORITYBY:~---=- Ken Weinberg Director of Water Resources Approved as to form and legality: ..') By:(.IOQQrvJ &aiLWj,D--ep~ General Cou I San Diego County Water Authority SWEETWATER AUTHORITY f IcI I: I' I: I I 1:\L1SA •Local Investigations &Studies Assistance Program\2007\Fundlng Agreemenls\Sweetwater\Sweetwater Funding Agreement REV 11-20-D7.doc 12 of 12 ATTACHMENT A SCOPE OF WORK ATTACHMENT A SCOPE OF WORK Phase I eTask I-I:Compile geohydrologic reports and data.This background information includes geologic maps and sections,geophysical data,offshore bathymetry,water and oil well construction and lithologic data,ground-water quality data,and surface-water discharge and quality data.These data are needed to interpret results from Phase I.A comprehensive literature review was done to augment data that was collected as part ofPhase I.Electronically available USGS surface-water,ground-water,and water-quality data were reviewed and integrated into the GIS.Surficial geologic maps ofthe area were obtained,digitized,and incorporated in the GIS. eTask 1-2:Collect samples of ground-water quality.Both areal and downhole samples will be collected.The areal sample sites will be selected to include a broad distribution ofthe San Diego Formation throughout the watershed.The downhole samples will be collected from production wells,and will include measurement offlow within the well bore in order to optimally selectthe depth to collect the sample. eTask 1-2:Analyze InSAR data.This type ofremotely sensed data obtained from satellites can be used to help determine aquifer structure,the presence of faults and other hydrologic barriers,areas ofrecharge and discharge,and how the aquifer responds to different pumping amounts and temporal distribution.Some ofthis information was obtained and combined with surficial geologic mapping to help define the extent ofthe aquifer. eTask 1-3:Conduct aquifer test.A regional aquifer test was completed and indicated that a hydrogeologic connection exists between the brackish ground- water wells that supply the Richard A.Reynolds Desalination Facility (Desalination Facility)and the National City production wells two miles to the north.This test will be helpful in calibrating the groundwater computer model. eTask 1-4:Installed one multiple-depth monitoring well.The multiple-depth monitoring well was constructed approximately 1.5 miles west ofthe National City production wells on the San Diego Navy Base.In addition to standard lithologic and geophysical logging,core samples were taken from selected depths and analyzed for physical and chemical characteristics.The wells were constructed to provide long-term monitoring ofdepth-dependent water levels and water quality. eTask 1-5:Create a public website.This project website [ca.water.usgs.gov/sandiego]integrates and presents the data and infonnation collected in tasks I-I through 1-4. The scope mentioned above,has been primarilyfunded by the Sweetwater Authority,with a total cost ofapproximately $2 million.Sweetwater will be submitting costs of$750,000,associated with funds spentfrom July],2005 to June 30,2007 in Phase I ofthe USGS study,as Sweetwater's share ofthe matchingfimds for the LISA program.Otay's matchingfunds we bepart ofthe Phase IIportion ofthe study. Phase II Phase II extends the findings ofPhase I into the adjacent Otay River drainage basin, which is the southerly side ofthe Sweetwater River drainage basin.The approach is similar to Phase I,focusing primarily on integrating geologic data with ground-water quality constituents that identify the age,source,and three-dimensional movement of ground water. eTask 11-1:Measure depth-dependent flow rate and collect depth-dependent water quality samples from selected production or monitoring wells in the Otay River Basin.Following measurement ofthe depth-dependent flow rate of each well,samples will be collected from specific depths and then analyzed for major and minor ions,selected trace elements,tritium,and stable isotopes of oxygen and hydrogen. eTask 11-2:Collect samples of ground-water quality.A single composite water sample will be obtained from each selected wells and will be analyzed for major and minor ions,selected trace elements,nutrients,dissolved oxygen,noble gases, tritium,carbon-14,and stable isotopes ofoxygen and hydrogen.Wells to be sampled will be selected based on their broad distribution covering the horizontal distribution of the San Diego Fonnation in the Otay River drainage basin. Candidate wells include a multiple-depth piezometer well that was previously installed and sampled by the USGS. eTask 11-3a:Install mUltiple-depth monitoring well in the Otay River basin. In addition to standard lithologic and geophysical logging,core samples will be taken from selected depths and analyzed for physical and chemical characteristics. The wells will be constructed to provide long-term monitoring ofdepth-dependent water levels and water quality.A total ofthree wells will be drilled through the San Diego Formation in the Otay River drainage basin. eTask II-3b:Install one multiple-depth monitoring well in the Sweetwater River basin.This monitoring well will be constructed near the existing prouction wells that provide water to the Desalination Facility in Chula Vista.The well will be constructed to provide long-term monitoring ofdepth-dependent water levels and water quality. -Task II-3c:Install one mUltiple-depth monitoring well with the location to be determined.This monitoring well will be constmcted in the San Diego Formation,but the location has not yet been determined. eTask II-3c:Install one multiple-depth monitoring well with the location to be determined.This monitoring well will be constmcted in the San Diego Fonnation,but the location has not yet been detemlined. eTask 11-4:Collect and analyse geophysical and remotely-sensed data.Types ofdata include surficial and airborne (gravity,aeromagnetic,seismic,InSAR, bathymetric)and borehole geophysics.This analysis will allow interpolation of point data ofgeologic formations throughout the drainage basins. eTask 11-5:Data analysis and interpretation.Data collected as part of Phase II will be analyzed together with data from Phase I in order to critique and expand the Phase I findings.The interpretation will include the regional geologic mapping,lithologic data from wells,surface and borehole geophysical data, InSAR data,GIS coverages,and historical surface-water and ground-water quality data. eTask 11-6:Develop a water budget.A comprehensive surface-water and ground-water budget will facilitate understanding ofthese systems.The budget also will provide the necessary data for development of simulation and optimization models. eTask 11-7:Develop a regional ground-water flow model.This interpretative tool will facilitate a better understanding ofhow the surface-water and ground- water systems interrelate,and will provide a basis for quantitative analysis of regional water operations.Ifnecessary,the flow model will be modified to include the density effects ofbrackish and saline water. eTask 11-8:Develop a simulation-optimization model.A constrained optimization model will be linked to the regional ground-water flow model in order to quantitatively analyze water-management plans. eTask 11-9:Evaluate optimal water management.Alternative water management plans will be evaluated and compared with results from the simulation-optimization model.Specific topics to be analyzed can include in-lieu conjunctive use,effects of ground-water extraction,and enhanced interaction between rivers and near-surface ground water. eTask II-tO:Prepare technical reports.USGS technical reports will be prepared documenting and summarizing the geology and hydrology ofthe San Diego Fonnation. The cost ofPhase II would be approximately $2.25 million for the work to be completed between July 1,2007 andJune 30,2010.Sweetwater will be submitting costs of$750,000,associated withfimds spentfor Phase Iofthe USGS studyfrom July 1,2005 to June 30,2007for Phase I ofthe USGS study,as Sweetwater's share o/the matchingfundsfor the LISA program. ATTACHMENT B PROJECT SCHEDULE Attachment B Schedule for USGS Studies of the San Diego Formation 10 Task Name Construct Multi-Depth Monitoring Well No.1 IDuration I 66 days Start I Man 4/3/06 2005 i 2006 I 2007 I 2008 i 2009 I 2010 Finish Apr I Jul IOct IJan IApr IJul IOct IJan IApr IJul IOct IJan IApr I JUI IOct IJan IApr IJul IOct IJan IApr IJul Man 7/3/06 t.....±J 2 Construct Multi-Depth Monitoring Well No.2 ;66 days Man! 10/1/07; Man 12/31/07 3 Construct Muiii-DepthMonitoring Well No.3 66 days ........Tue;"'fue'7/1ii5if 4/1/08 4 Construct MUlti-Depth Monitoring'.....i-ti6days-'WedT"--"'Wed' Well No.4 10/1/08.12/31/08 6 Groundwater Computer Model 914 days .Mol, 7/3/06 "'--fhli' 12/31/09 7 Preliminary GW Model Complete odays ····Mon-;--Mon6/ZiOs· 6/2/08 : .6/2 8 Report .261 days Wed: 7/1/09 . Wed 6/30/10 Task Project:LISA Schedule Date:Wed 11121107 Split . Milestone Summary •••External Tasks External Milestone .. Progress Project Summary ~.Deadline Page 1 ATTACHMENT C PROJECT BUDGET ATTACHMENT C USGS Study of the San Diego Formation for Potential In-lieu Conjuctive Use Phase 1 Task 1-1 Compile geohydrologic reports and data $60,000 Task 1-2 Collect water-quality data $200,000 Task 1-2 Analyze InSAR data $30,000 Task 1-3 Conduct aquifer test $50,000 Task 1-4 Install one multiple-depth monitoring well $350,000 Task 1-5 Create a public website $60,000 Subtotal $750,000 Phase II Task 11-1 Measure depth-dependentflow rate $50,000 Task 11-2 Collect samples of ground-water quality $50,000 Task 11-3a Install multiple-depth monitoring well in $400,000theOtayRiverbasin Task 11-3b Install one multiple-depth monitoring well $400,000intheSweetwaterRiverbasin Task 11-3c Install one multiple-depth monitoring well,$400,000locationtobedetermined. Task 11-4 Collect and analyze geophysical and $30,000remotelysenseddata Task 11-5 Data analysis and interpretation $250,000 Task 11-6 Develop a water budget $50,000 Task 11-7 Develop a regional ground-water flow $300,000model Task 11-8 Develop a simulation-optimization model $100,000 Task 11-9 Evaluate optimal water management $100,000 Task 11-10 Prepare final report $120,000 Subtotal $2,250,000 Total Phase I and II $3,000,000 ATTACHMENT D QUARTERLY PROGRESS REPORT FORM ATTACHMENT D Quarterly Technical Progress Report #1 Covering Period:January 1,200X to March 31,200X Project Title:Project Title Recipient:Name ofAgency Address Partners:Co-applicants Consultants Contact Person:Name Contact information Date Submitted:Date Name,Title Signed,Reviewed by designated representative 1.Project Objective: Discuss overall project objective 2.Project Description /Background: Describe the project and project background 3.Progress and Status: List project progress and status by task,including work completed during the reporting quarter and work anticipated to be conducted during the next quarter. 4.Percent Complete of Total Project: Indicate total percent completion ofproject 5.Deliverables: List deliverables,ifany,for this reporting period.This may include any intermediate reports that were completed during the reporting period I,', 6.Expenditures: Expenditures for work performed on the project to date are as follows: Previous This Total to Total Budget Remaining expenditures Ouarter Date Budget Task I -Task name $0 $0 $0 $0 $0 Task 2 -Task name $0 $0 $0 $0 $0 Task .3 -Task name $0 $0 $0 $0 $0 Task 4 -Task name $0 $0 $0 $0 $0 Task 5 -Task name $0 $0 $0 $0 $0 Task 6 -Task name $0 $0 $0 $0 $0 Task 9 -Final Report $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 7.Schedule Status: Discuss project schedule status,including any delays that may have been encountered 8.Plans for Next Quarter: Summarize the work plans for the next quarter 9.Attachments: Discuss any attachments to the repOli 10.Miscellaneous Issues Discuss any miscellaneous issues encountered during the quarter All quarterly reports should be publicly disclosable and not contain confidential,proprietQlY or business sensitive information. ATTACHMENT E STATEMENT OF COSTS Attachment E -Statement of Costs Invoice Date Prepared: Organization: Grant Title: Project Title: Invoice Period: IInvoice Amount (Reimbursable) 1 Date Member Agency Name LISA Program Title ofProject From Date------To Date Budget Summary·4th QuarterCalendarYear.2007·...............'J«'....,.. Agency Cost Share Reimbursable Prior Amount Amount Total Prior Amount Current Amount Total Invoiced to Expended Expended for Expended to Contract Budget Invoiced Invoiced Date Contract Budget Quarter Date Task 1 (name) 3nd Party Inklnd $-$-$-$-$-$-$-$- Task 2 (name) 3nd Party Inkind $-$-$$-$-$-$-$- Task 3 (name)$-$ 3nd Party Inkind $$$-$-$-$-$-$- Task 4 (name)$-$- 3nd Party Inkind $-$-$-$-$-$-$-$- Task 5 (name)$-$- 3nd Party Inkind $-$-$-$$-$-$-$- Task 6 (name) 3nd Party Inkind $-$-$$-$-$-$-$- Total $-$-$-$-$-$-$-$- Subtotal $0.00 Grand total $0 Subtotal $0.00 ATTACHMENT F SELECTED DWR EXHIBITS D & E OF AGREEMENT WITH SAN DIEGO COUNTY WATER AUTHORITY I\~ stateofcalifornia DEPARTMENT OF WATER RESOURCES EXHIBIT O-Special Terms and Conditionsfor Department of Water Resources (Local Public Entities -Payables) The Resources Agenc:y Contract #"4600007621 Exhibit D Page 1 of 3 1.RESOLUTION OF DISPUTES:In the event of a dispute,Contractor"shall file a "Notice of Dispute"with the Director or the Director's Designee within ten.(10)days of discovery ofthe problem.The state and Contractor shall then attemptto negotiate a resolution ofsuch claim and,if appropriate,process an amendment to implement the terms ofany such resolution.Ifthe State and Contractor are unable to resol",e the dispute,the decision of the Direc:tor or the Director's Designee shall be fioal,unless appealed to a court of competent jurisdictIon. In the event of a dispute,the language contained within this agreement shall prevail over any other language including that of the bid proposal. 2.PAYMENT RETENTION CLAUSE:Ten percent ofany progress payments that may be provided for under this contract shall.be withheld per Public Contract Code Section 10346 pending satisfactory completion of all services under the contract. 3.RENEWAL OF CCC:Contractor shall renew the Contractor Certification Clauses or successor documents every (3)years or as changes occur,whichever occurs sooner. 4..AGENCY LIABILITY:The Contractorwarrants by execution of this Agreement,that no person or seiling agency has been employed or retained to solicit orsecure this Agreement upon agreement or understanding for a commission,percentage,brokerage.or contingent fee,excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business.For breach or violation ofthis warranty,the State shall.in addition to other remedies proVided by law,have the rightto annul this Agreementwithout liability,paying only for the value ofthe wort<actually performed,or otherwise recover the full amount of such commission, percentage,brokerage,or contingent fee. 5.POTENTIAL SUBCONTRACTORS:Nothing contained in this Agreement or otherwise shall creqte any contractual relation between the State and any"Subcontractors,and no supcontract shall relieve the Contractor of its responsibilities and obligations hereunder.The Contractor agrees to be as fully responsible to the State for the acts and omissions ofits subcontractors and ofpersons either directly or indirectly employed by any ofthem as it is for the acts and omissions ofpersons directly employed by the Contractor.The Contractors obligation to pay its subcontractors is an independent obligation from the State's obligation to make payments to.the Contractor. As a resUlt,the State shall have no obligation to payorenforce the payment of any moneys to any SUbcontractor. 6.SUBCONTRACTING:"Should it be necessary to subcontract for supplemental services or specialists,the Contractor shall obtain prior:written consent from DWR.Ifthe subcontracts total more than $50,000 or25%ofthe total contract,whichever is less,then the Contractor must certify that the subcontl1;lctor has been selected by the Contractor pursuant to a bidding process requiring at least three bids from responsible bidders or pursuant to the procedures setforth in Government Code Section 4525 at seq.,as applicable.If Contractor is unable to 'obtain three competitive bids or three Statement ofQualifications,Contractorshall submit a written explanation to DWR. DWR will then decide whether to seek authorization to allow Contractor to proceed with the proposed subcontract. Contractors shall assure that all administrative fees for subcontracts are reasonable considering the services being provided and the oversight reqUired.Contractor shaUonly payoverheadchargEl,Son.thefirsf$25,OOO for eac::h~uQcontracLP . ( Contract #460000762.1 Exhi'"":~D Page (.3 7.COMPUTER SOFTWARE:For contracts in which software usage is an essential element of performance under this Agreement,the Contractor certifies that it has appropriate systems and controls in place to ensure that state funps will not be used in the performance of this contract for the acquisition,operation or maintenance of computer software in violation of copyright laws. 8.REPORT OF RECYCLED CONTENT CERTIFICATION:In accordance with Public Contrac,t Code S~ctions 12200, 12205,12209,and 12156(e),the contractor must complete and return the form DWR 9557,Recycled Content Certification,for each reqUired products to the Department at the conclusion of the services specified in this contract.Form DWR 9557 is attached to this Exhibit and made a part ofthis contract by this reference. 9.REIMBURSEMENT CLAUSE:If applicable,travel and per diem expenses to be reimbursed underthis contract shall be at the same rates the state provides for unrepresented employees in accordance with the provisions of nt/e 2,Chapter 3,of the California Code of Regulations.Contractor's designated headquarters for the purpose of computing such expenses shall be:San Diego,California. 10.TERMINATION CLAUSE:The State mayterminate this contract without cause upon 30 days advance wrrtten notice.The Contractor shall be reimbursed for all reasonable expenses incurred up to the date ofterrnination. 11.CONFLICT OF'INTEREST: a.Current and Former State Employees:Contractor~hould be aware of the following provisions regarding current or former state employees.IfContractor has any questions on the status of any person rendering services or involved with the Agreement,the awarding agencymust be contacted immediately for clarification.( (1)Current State Employees:(PCC §10410) (a)No officer or employee shall engage in any employment,activity or enterprise from whictJ the officer or emp'IQyee receives compensation·or has a fina,:!ciallnterest and Which is sponsored or funded by anystate agency,unless the employment,activity or enterprise is reqUired as a condition ofregular state employmet1t. (b)No officer"or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services. (2)Formerstate 'Employees:(peC §10411) (a)For the two-year period from the date he or she left state employment,no former state officer or employee mayenter into a Contract in which he or she engaged in any of the negotiations, transactions,planning,arrangements or any part of the decision-making process relevant to the contract whll~employed in any capacity by any state agency. (b)For the twelve-month period from the date he or she left state employment,no former state officer or employee may enter into a contract with any state ageAcy jf he orshe was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service. b.Penaltv for Violation: (a)If the Contractor violates any provisions of above paragraphs,such action by Contractor shall rendL this Agreement void.(PCe §10420) Contract #460007621 Exhibit D Page 3 of 3 c.Members'of Boards and Commissions: (a)Members ofboards and commissions are exempt from this section if they do not receive payment otlier than payment of each meeting of the board or commission,payment for preparatory tim~and payment for per diem.(PCC §10430 (e) d,Representational Conflicts of Interest: The Contractor must disclose to the DWR Program Manager any activities by contractor or subcontractor personnel involving representation of parties,or provision of consultatlon services to parties,who are adversarial to DWR.DWR may immediately terminate this contract if the contractor fails to disclose the in4>rmation required by this section.DWR may imfTlediately terminate this contract ifany'conflicts ofinterest cannot be reconciled with the perforl'!lance ofservicE;s under this contract. e.Financial Interest in Contracts: Contractor should also be aware ofthe following provisions of Govemment Code §1090: UMembers ofthe Legislature,state,county district,judiciai district,and city officers or employees shall not be financially interested in any contract made by them in their official capacity,or by any body or board ofwhich they'are members.Nor shall state,county,district,judicial district.and city officers or employees be purchasers at any sale orvendors at any purchase made by them in their official capacity." f.Prohibition for Consulting Services Contracts: For conSUlting services contracts (see pec §10335.5),the Contractor and any subcontractors (except for subcontractors who provide services amounting to 10 percent or less of the contract price)may not submit a bid/SOO.or be awarded a contract.for the proVision of services,procurement ofgoods or supplies or any other related action which is required,suggested,or otherwise deemed approp.riate in the end product of such a consulting services contract (see PCC §10365.5). state ofCafifomia DEPARTMENT OF WATER RESOURCES RECYCLED CONTENT CERTIFICATION FORM The Resources Agent:) Contract #46000C '21 Exhibit 0,Attachrn...,It 1 Page 1 of2 ( To be completed by the vendor/bidder/contractor and returned to: DEPARTMENT OF WATER RESOURCES Recycling Coordinator Purchasing Services Office 1416 Ninth Street,Room 354,Sacramento,CA 95814· (916)654-0533 FAX:(916)653-6543 COMPANY:__--:-_ PERSON COMPLETING FORM:_ DATE--- DESCRIPTION RECYCLED MATERIALPleaseincludeitemname,brand,and %POSTCONSUMER TYPEproductnumber -r--0-(.- All businessesshall certify in writing to the contracting officer or his orherrepresentative the minimum percentage,if notexact percentage,of postconsumermaterial in the productiOlis,materials,goods,or supplies offered orsold to the state regardless of wheth!!lrthe product meetsthe minimum content requirements specified in law (see page 2 forminimum content requlrf;lments).The certification shall he furnished underpenalty of p~~ury.The certification shall be provided regardless of content,even Ifthe product contains no recycled material.A state agency may waive the certification requirements ifthe percentage ofpostconsumer materi!!lln the prodUcts,mat!3rials,good or supplies can be verified In a written advertisement,including,butnotlimited to,a prodUctlabel,a catalog,ormanuracturer orvendor Internet website. Public.Contract Code Sections 10233,10308.5,10354,and 12205{a)(1)(2)(3)(b)(1)(2)(3). I certify that the above information is true.I furthercertifythatthese environment.al claims for recycled content regarding these products are consistentWith the Federal Trade Commission's EnvironmentalMarketing Guidelines in accordance with PCC 12404. I.:...,N_AM_E_O.".F_P_E_R_SO_N_C_O_M_P_LET_IN_G_F_O_RM L __~__~_ l... ~."S"""'IG::":NA"':":"::ru=-=R:::E"""::O:-::F:-":P:::OE=-=R:::'S'=07"':N"'::CO:-=:-M:::P:;'""L=ETI=N-:::G"":F:::O:-::RM;:-:----·-----;D~A:-::T:::E:---· ( I: Contract #460000762 Exhibit DI Attachment Page 2 of; 1.Postcohsumer material comes from products that were bought by consumers,used,then recycled.For example:a newspaper tha has been purchasea and read,I"!e~recycled,and then used to make another product would be postconsumer material. If the product does notfit into any ofthe product categories,enter "N/A".Common N/A products include wood products,natural textiles,aggregate,concrete,electronics such as computers,TV,software on a disk or CD,telephone. 2.Product category refers to one ofthe product categories listed below,into which the reportable purchase falls.For products made from multiple materials,chqose the category that comprises mostofthe product by weight,orvolume. Note:For reuse or refuri;llshed prodUcts,there are no minimum content requirements. Foradditional information v1sltwww.ciwmb.ca.gov!BuvRecycled/ Description Product Categories PaperProducts -Recycled Printing and Writing -Recycled Compost,Co-compbst,and Mulch -Recycled Glass-Recycled Re-refined Lubricating Oil-Recycled Plastic-Recycled Printer or duplication cartridges Paint -Recycled Antifreeze -Recycled Retreated Tires -Recycled Tire -Derived -Recycled Metals .~Recycled Minimum ContentRequirement 30 percent postconsumer fiber,by fiber weight 30 percent postconsumer fiber,byfiberweight 80 percent recovered materials Le.,materialthat would otherwise be nonnally disposed of in a landfill 10 percent postconsumer,byweight 70 percent re-refined base oil 10 percent postconsumer,byweight a.Have 10percentpostconsumermaterial,or b.Are purchased as remanufactured,or c.Are backed by a vendor-offered program that will take back the printer cartridges aftertheir useful life and ensure that the cartridges are recycled and comply with the definition of recyeled as setforth in Section 12156 ofthe Public Contract Code. 50 percent postconsumer paint (exceptions when 50 percent postconsumer (',(Intent is not available or;s restricted ~y a local air qL!allty management district,then 10 percent postconsumer content maybe SUbstituted) 70 percent postconsumermaterial Use existing casing that has undergone retreading or recapping process in accordance,with PublicResource Code (commencing with section 42400). 50 percent postconsumertires 10 percentpostconsumer,byweight state·of CalifornIa DEPARTMENT OFWATERRESOURCES TRAVEL AND PER DIEM EXPENSES The Resources Agent Contract #4600(32 Exhibit D,Attachment: Page 1 of: ( I.SHORT-TERM PER DIEM EXPENSES A.In computing reimbursement for continuous short-tenn travel of more than 24 hours and less than 31 consecutive days,the employee will be reimbursed for actual costs up to the maximum allowed for each meal,incidental,and lodging expense for each complete 24 hours oftravel,beginning with the traveler's times of departure and return,as follows: 1.On the first day oftravel on a trip of 24 hours or more: Trip begins at or before 6 a.m,Breakfast may be claimed on the first day. Trip beQins at or before 11a.m,Lunch may be claimed on the firs/day. Trip beains at or before 5 p.m.Dinner may be-claimed on the ·first day. 2.On the fractional day of travel at the end of a trip of more than 24 hours: Trip ends at or after 8 a.m'.Breakfast may be claimed. Trip ends at or after 2 p.m.Lunch may be claimed. Trip ends at or after 7 p.m.Dinner maybe claimed. If the fractional day includes an overnight stay,receipted lodgIng may al~o be claimed. No meal or ( lodging expense may be claimed or reimbursed more than once on any given date or during any 24"1 ....ur period. 3.Reimbursement shall be for actual expenses,SUbject to the following maximum rates: Meals' Breakfast $6.00 Lunch $10.00 Receipts are not required for regular Dinner $18.00 short-term travel meals Incidentals $6.00 Lodging: When required to conduct State business and obtain lodging in the counties of Los Angeles and San Diego,reimbursement will be for actual receipted lodging to a maximum of$110 plus tax. When required to conduct State business and obtain lodging in the counties of Alameda,San Francisco,San Mateo,and Santa Clara,reimbursement will be for actual receipted lodging to a maximum of $140 plus tax. Iflodging receipts are not submitted,reimbursement will be for meals only at the rates and time frames set fortli in 8#1 below. B,In computing reimbursement for continuous travel ofless than 24 hours,actual expenses,up to the -- maximums in#3 above,will be reimbursed for breakfast andlbr dinner and/or lodging in accordance! the following time frames: 1.Travel begins at or before 6 a.m.and ends at orafter 9 a.m.:Breakfast may be claimed.Travel begins at or before 4 p.m.and ends at or after 7 p.m.:Dinner may be claimed.If the trip of less than 24 hours includes an ovemight stay,receipted lodging may be claimed.No lunch or incidentals may be reimbursed on travel of less than 24 hours. 2. Contract #4600007621 Exhibit 0,Attachment 2 Page.2 of2 Employees on short-term travel who stay in commercial lodging establishments or commercial campgrounds will be reimburseq for actual lodging expenses substantiated by a receipt Employees who stay with friends or relatives,or who do not produce a lodging receipt,will be eligible to claim meals only. II.LONG-TERM TRAVEL AND PER DIEM EXPENSES A.Employee maintains a separate residence in the headquarters area: 1.Long-term travelers who maintain a permanent residence at their primary headquarters may claim daily long-term lodging up to $24.00 with a receipt,and long-term meals of $24.00 for each period cif travel fr-om 12 to 24 hours at the long-term location.For travel of less than 12 hours,the traveler may claim either $24.00 in receipted lodging or $24.00 in long-term meals. ilL IV. B.Employee does not maintain a separate residence in headquarters area: 1.Long-term travelers who do not maintain a permanent residence at their headquarters may claim daily receipted lodging up to $12.00,and long-term meals of$12.00for each period oftravel from 12 to 24 hours at the long-term locations.For travel of less than 12 hours,the travelers may claim either $12.00 in receipted lodging or $12.00 in long-term meals. MILEAGE REIMBURSEMENT Reimbursement for personal vehicle mileage is 48.5 cents per mile. There is no specific rate determined for the reimbursement for personal vehicle mileage using a specialized vehicle that t1as been modified to accommodate disabilities.In these cases,the 48.5 cents per mile reimbursement will apply. VEHICLE RENTAL Reimbursement for vehicle rental shall be for actual and necessary costs of such rental and airplane usage shall be allowed at the lowest fare available.Claims for reimbursements shall be allowed upon submittal of the appropriate·receipt.·Refer to California Code of Regulations,Title 2,Sections 599.627 and 599.628. ( ( Contract #4600007~<1 Ext{E Page 1 of 2 EXHIBIT E ADDITIONAL PROVISIONS 1.COPYRIGHT:All rights in copyright works created by Contractor and any subcontractors in the performance of work underthis Agreementare the property of State,Department ofWater Resources. State shall grant Contractor a royalty-free,nonexclusive,nontransferable,irrevocable license to reproduce, prepare derivative works and distribute copies of the deliverables so long as such deliverables are used for govemment;and not commercial,purposes. 2.PUBLIC WORKS AGREEMENTS:Contractor shall comply with the language stated in the Standard Clauses for Public Works,DWR 4197,Attachment 1,and the Standard Califomia Nondiscrfinination Construction Contract Specifications,Std.18,Attachment 2.Contractor must use prevailing wage rates for the Apprentice Electrician,Journeyman Electrician,Laborer,and any other classifications used in the performance ofthe work specified in the Scope of Work.C.ontractor can access these rates on the internet at http://www.dir.ca.gov or by calling the California Department of Industrial Relations at (415)703-4n4 in San Francisco for paper copies of the rates. 3.PREVAiLING WAGES:Labor Code Certifications. a.Contractor is aware ofthe provisions of Section 3700 of the Labor Code,which requires every employer to be insured against liabilityforworkers'compensation Dr to undertake seff- _Josurance in accordance with the provisions of that code and Contractor and any { subcontractors will comply with such provisions befon~commencing the performance of the\ work of this contract. b.In accordance with the applicable provisions ofthe Labor Code,the Contractor and any subcontractors shall paytheir employees.Prevailing Wages for the performance of work.The Director ofthe State Department of Industrial Relations has made the general prevailing wage .rate determination covering the locality where work on fhis contract is to be perfonned. The general prevailing wage rates can be obtained from the Department of Industrial Relations or any source authorized by the Department of Industrial Relations.On the Internet,they can"be found at www.dir.ca.gov.A copy of the general prevailing wage rates is also on file at the State Department ofWater Resources 1416 9th Street,Sacramento CA and is available to any Interested party on request.The Contractor agrees to post a copy of the applicable general prevailing wage rates for the locality of each job site. c.It is hereby mutually agreed that,pursuant to Labor Code section 1nS,the Contractor shall forfeit to the State 50 dollars ($50)for each calendar day,or portion thereof,for each worker paid by him or her,or subcontractor under him or her,less than the prevailing wag-e so stipulated and in addition,the Contractor further agrees to pay to each worker the difference between the actual amount paid for each calendar day,or portion thereof,and the.stipulated prevailing wage rate for the same.This provision shall nQt apply to properly registered apprentices. d.It is further agreed that the maximum hours a worker is to be employed is limited to eight hours a day and 40 hours a week and the contractor shall forfeit,"85 a penalty to the State,. twenty-five dollars ($25)for each worker employed in the execution ofthe contract for each calendar day during which a worker is reqUired or permitted to Jabor more than eight hours in any calendar day or more than 40 hours in any calendar week,in violation of Labor Code sections 1810-1815,inclusive. e.Properly registered apprentices may be employed in the prosecution of the work.Every such ~tlnr,Qntir:~c::h~f1 h.c.t'1~irl tho.~+"'::::.nn~rrlu.~",..._......,..r +.&';__.-.~~_._.I._..:.LL -__-.1._". Contract #4600007621 Exhibit E Page 2 of 2 e.Properly registered apprentices may be employed in the prosecution ofthe work.Every SUch apprentice shall be paid the standard wage paid to apprentices under the regulations ofthe craft or trade at which he or she is employed,and shall be employed only at the work of the craft or trade to which he or she is registered.The Contractor and each subcontractor must comply with the requirements ofLabor Code section 1775.5 and any related regulations .regarding the employment of registered apprentices. f.Contractor and any subcontractors shall complY with all other applicable Labor Code requirements,including section 1776 regarding record keeping. 4.PERMITS AND LICENSES:Contractor shall procure all permits and licenses,pay all charges and fees and give all notices r.Jecessary and incidental to the due and lawful prosecution ofthe work. 5.PROGRESS PAYMENTS:Progress payments are permitted for tasks completed under this contract. Ten percent ofthe invoiced amount shall be withheld pending final completion ofeach task.Any funds withheld with regard to a particulartask may be paid upon completion of that task. (Rev.7/06) SUBCONTRACTORS.(See Public Contract CodeSection 4104.)The bidder shall set forth in'its bid: a.The name and business address of each subcontractor who wilt perform work or labor or render services in an amount in excess of one-half of one percent(.5%)oftl:Je General Contractor's total bid;and STANDARD CLAUSES- GENERAL CONDITIONS FOR PUBLIC WORKS ANDIOR DRILLING CONTRACTS DEPARTMENT OF WATER RESOURCES The Resources Agency Agreement No.4600007621 Exhibit E,Attachment 1 LICENSE.No bidder may bid on work for which it is not properly licensed by the Contractor's State License Board.Joint Venture bidders must possess aJoint Venture License.Bidders for this Agreement must have :--_:--__.,.--,_ classification(s)of contractor's license.Provide license number and expiration date and certify under penalty 'of perjury that the foregoing is true and correct. EXAMINATiON OF BID DOCUMENTS AND SITE.Bidder sliall carefully examine~ite of wo"r-k,plans andspecifications. The bidder shall investigate conditions,character,quality of surface,or subsurface materials or obstacles to be encountered.No additions to the contract amountwill be made because ofthe Contractor's failure to examine the site of work,plans and specifications.. Slate ofCalifornia b.The pbrtion ofwork to be done by each subcontractor.(See Public Contractor Code Section'41 04.) PAYMENT BOND.The Contractor shall furnish,concurrently with signing the contract,a Payment Bond to Accompany Construction Contract,Standard Form 807,in an amount not less than 100%of the amount of the contract when the cQntract exceeds $5000 (for non-construction drilling contracts,when the cohtract exceeds $25,000).Such bond st(~ executed by the Contractor and a corporate surety approved by the State.\( NOTICE.Failure to obtain a payment bond within ten (10)days of notification of award shall cause the State to reject the bid. WORKERS'COMPENSATION INSURANCE CERTIFICATION.Upon execution of the contract,the Contractor shall provide the State either with a certificate of insurance issued by an insurance carrier licensed to write workers' compensation insurance in the State of California,including,the'name of the carrier and date of expiration cifthe insurance,or a certificate ofconsent to self insure issued by the Director ofthe Depart,ment of Industrial Relations. PREVAILING WAGE.It is hereby mutually agreed that the Contractor shal!forfeit to the State a penalty of $50 for each calendar day,or portion thereof,for each worker paid by It,or subcontractor under it,less than the prevailing wage so stipulated.In addition the Contractor further agrees to pay to each worker the differen~between the actual amount paid for each calendar day,or portion thereof,and the stipulated prevailing wage rate for the same.This provision shall not apply to properlyregistered apprentices. MAXIMUM HOURS.It is further agreed that the maximum hours a worker is to be employed is limited to 8 hours a day and 40 hours a week and the Contractor shall forfeit,as a penalty to the State,$25 for each worker employed in the execution of the contract for each calendar day during which a worker is reqUired or permItted to labor more than 8 hours in any calendar day or more than 40 hours in any calendar week in violation of Labor Code Sections 1810-1815,inclusive. TRAVEL AND SUBSISTENCE PAYMENTS.Travel and subsistence payments shall be paid to each worker needed to execute the·work,as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with Labor Code Section 1773.8. APPRENTICES.Properly registered apprentices may be employed in the prosecution of the work.Every I,I apprentice shall be paid the standard wage paid to apprentices under the regulations of the craft or trade at which he or she is employed,and shall be employed only at the work of the craft or trade to which he or she is registered.The Contractor and each subcontractor must comply with the requirements of Labor Code Section 1777.5 and any related regulations regarding the employment of registered apprentices. DWR 4197 (Rev.6/01)SldeA l\ SUBSTITUTIONS.Pursuant to Section 3400 of the Public Contract Code,should the Contractor seek to substitute a brand of materials other than specifiea,the Contractor shall submit data substantiating the request for substitution of Uan equal"item.The substantiating data must be presented for approval within thirty-five (35)days after the award of the agreement.The State shall be the sole judge as the comparative quality and suitability of "an equal"Item. ANTI-TRUST CLAIMS.The Contractor offers and agrees and will require all ofhis subcontractors and suppliers to agree to assign to the awarding body all rights,title,and interest in and to all causes of Clction they may have under Section 4 of the Clayton Act (15 U.S.C.Sec.15)or Linder the Cartwright Act [Chapter 2 (commencing with Sec.165700)of Part 2 'of Division 7 of the Business and Professions Code],arising from purchases ofgoods,services,or materials,pursuant to the pUblic works contract or the subc,ontracl.The.assignment made by the Contractor and all additional assignments made by the subcontractors and suppliers shall be deemed to have been made and will become effective at the time the awarding body tenders final payment to the Contractor,without further acknowledgment or the necessity of tendering to the awarding body anywritten assignments. If an awardihg body receives,either through Judgment or settlement,a monetary recovery for a cause of action assigned under Government Code Sections 455D-4554,the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may,upon demand,recov~r from the pUblic bqdy any portion of the recovery.including treble damages,attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price,less the expenses incurred in obtaining that portion of toe recovery. Upon demand in writing by the assignor,the assignee shaH,within one year from _such demand,reassign the cause of action assigned under Govemment Code Section 4550-4554,·if the ass!gnor has been or may have been injured by the violation of law for which the cause of action arose and (a)the assignee has not been injured thereby,or (b)the assignee declines to file a court action for the cause of action. PROGRESS PAYMENTS. a.Ten percent of any p'rogress payments that may be p~ovided for under this contract shall be withheld pending satisfactory completion of all services under the contract.The Contractor may substitute securities for such retentions and receive any interest accrued provided in Section 22300 ofthe Public Contract Code.. b.Upon execution of the contract,the Contractor shall furnish a faithful performance bond for not less than the total amount payable under the contract ifthe contract exceeds $10,000 and progress payments will be made. PAYROLL RECORDS.The Contractor andeach subcontractor shall comply with tabor Code Section 177Q regarding payroll records. ,NONCOLLUSION AFFIDAVIT.All bidders shall submit with their bids a signed and notarized NoncoJlusion Affidavit (DWR 4206).(Not required for non-construction drilling contracts.) LABOR CODE PROVISIONS.Pursuant to Section~1770 et seq.of the California Labor:Code,the Director of the State Department of Industrial Relations has made the general prevailing wage determination covering.the locality where work for this contract is to be performed.The general prevailing wage rates can be obtained from the Department of Industrial Relations or any source authorized by the Department of Industrial Relations.They are also made available at www.dir.ca.govl. The Contractor agrees to post a copy of the General Prevailing Wage Determination for the'locality of each job site. The Contractor also agrees to comply with all requirements of the California Labor Code and to pay for the forfeiture penalties and monies,which maybecome due as provided in Sections 1775 and 1813 of that Code. UNDOCUMENTED AliENS.No bidder or Contractor shall be eligible to bid for or receive a public works or purchase ____contract,who has,in the preceding five years,been convicted of violating a State or federal law respecting the i employment of undocumented aliens.. SUBSTITUTION OF SUBCONTRACTORS.A prime contractor whose bid is accepted may not substitute a subcontractor listed !n the original bid unless the provisions of PCC 4107 or4107.5 apply aM a hearing is held,·if required. Contract #4600007621 Exhibit E,Attachment 2 Page 1 of2 ( b.Provide written notificationwithin soven days to the director ofDFEH when the union or unions with whit;:h the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor,or when the Contractorhas other information that the . union referral process has impeded the Contractor's efforts to meet its obligations. a..Ensure and maintain a workingenvironment free of harassment,intimidation,and coercion at all sites, and at all faciliti~at which the contractor's employees are assigned to work.The contractor,.- where possible,will assign two or more women ( each construction project.The conlIaCtor shall specifically ensure that all leadpersons, superintendents,and other on-site supervisory personnel are aware ofand canyout the contractor'sobIigations tomaintain such a working environment,with specific attention to minority or female individuals workingat such sites orin such facilities. c.Disseminatethe Contractor'sequsl employment opportunity policy by providing notice ofthe policy to unions and training,recruitment and outreach 0 programs and requesting their cooperation in assisting the Contractor to meet its obligations;anq by posting the companypolicy on lmlletin boards accessible to all enwloyees at each location where cons1roctionworkis perfonned_ In orderforthe nonworkingtraining hours ofapprentices and trainees to be cmmted,such apprentjces and trainees mustbe employedbythe contractorduring the trBining period,and the contractor must have made a commitment to employthe apprentices and trainees at the completion oftheirtraining,subject to the availability ofemployment opportunities.Trainees must be trained pnnuant to training programs approved by the U.S.Department of Labor or the California Department ofIndustrial. Relations. 5. 6:The contractorshall take specific actions to implementits nondiscriminationprogram.The eValuationofthe contractor'scompliancewith·these specifications shall be baseduponits effortto achievemaximumresults from its actions.The contractor m~be able to demonstrate fully its efforts under Stepsa.through e.below: "Minority"includes: "Administrator"means Administrator;Officeof Compliance Programs,California Department of Fair Employmentand Housing(DFEH),orany person to whomtheAdministrator delegates authority; b. a. (iv)AmericanIndian/Alaskan Native (all persons having primary origins in anyofthe original peoPles ofNo$Americaandwho maintain culture identification through tribal affiliation or communityrecognititll~). (i)Black (all persons having primary origi,Ds in anyof the blackracial.groups ofAfrica,butnot of Hispanic origin); ~.Whenever the contractororanysubcontractorsub-- contracts a portion ofthe work,itshall physically include in eachsubcoiitractof$5,000 ormore the non- o discrimination clause in this contractdirectly or through incozporationbyreference.Anymbcontract forwork involvinga constrnctiontrade shall also include the Standard CaliforniaConstructionContract Specifications either directly orthroughincorporation by reference.Any subcontractforwork involvinga constroetion trade sha1l also include the Standard California Constrilctioo ContractSpecifications,either directlyor throughincoxporationbyreference. (iii)AsianIPacific Islander (all personshavingprimary origins in any ofthe original peoples ofthe Far East,SoutheastAsia,the IndillIl Subcontinent or the Pacific Islands);and (ii)Hispanic (al1.persons ofprimary culture or originin Mexico,PjJ.erto Rico,Cuba;Central or South Americaor other Spanish derived culture ororigin regardless ofrace); 3.Th~contraetot'shall implement thespecificnon- discriIIiinati.on standardsprovided in paragraphs 6(a) through (e)ofthese speci1ications. 4.Neither the provisions ofanycollectivebargaining agreement,nor the firi1nre by a union with whomthe contractorhas a collectivebargaining agreeDlent,to refer either minorities orwomenshall excuse the contractor's obligations under these specifications,GovernmentCode, Section 12990,or the regulations promulgated:PUJ:SU3Ilt thereto. These specificationsare applicableto an state contractors and subcontractorshavinga constructioncontract or subcontractof$5,000 or more. 1.Asused in the specifications: ( srATEOFCAl.IFORNIA STANDARD CAUFORNlA NONDISCRlMlNATlON CoNSTRUCTION CONTRACT SPEClRCATlONS (GOVERNMENT CODE.SECTION 12990) ~.18 [REV.1195) ( srATE OF c:AUFORIiA STANDARD CAUFORNIA NONDISCRIMINATION CONSTRUCTION CONTRACT SPECIFICATIONS ~OVERN.MENT COD£,SECTION 12990)Jt_'REV.lm5)(REVERSE) d.Ensure all personnel makingmanagement and employmentdecisions regarding hiring,assignment, layoff,tennination,conditions of work,training,rates of payor other employmentdecisions,includingall supervisorypersonnel,s'uperintendcn18,general leadpersons,on-site leadpersons,etc.,are IlWJlre ofthe Contractor'sequaI employmentopportunitypolicyand obligations,and discharge theirresponsibilities accordingly. e.Ensure that seniority practices,jobclassifications,work assignmen18 and other personnel practices,do not have a discriminatory effectby continuallymonitoring all personnel and employment related activities to ensure that the equal employmentopportunitypolicyand the Contractor'sobligationslDlderthese specificationsare being carried out. 7.Contra-'i:ors are encouragedtopmicipare involuntllry associations which assist in fulfilling their equal employment opportnnity obligations.The effom of,a contractor association,joint contractor-union, contractor-community,or other similar group of which the contractor is a member and participant,may be asserted as'C'fillfilling anyone or more of its obligations under these (_,'JpecificatiOl'lS provided that the contractor actively participates in the group,makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry,ensures that the concrete benefits ofthe program are reflec;ted in the Contractor'sminority and female workforce participation, and can provide access to documentation which demonstrates the effectiveness ofactions taken on behalfofthc Contractor. Theobligation'to comply,however,is theContractor's. 8.TheContractoris required to provide equal employment opportunity {or all minority groups,both male and female, and all women,both minority and nonminority. Consequently,the Contractor may be in viqlation of the Fair Employment and Housing Act (Gov.Code Section 12990 et seq.)if a particular group is employedin a substantially disparate manner. Contract#4600007621 Exhibit E,Attachment 2 Page 2 of2 9.Establishment and implemeptation ofa bonafide affirmative action plan purnuant to Section 8l04(b)ofthis Chapter shall create a rebuttable presumptionthat a contractoris in compliancewiththe requiremeots ofSection 12990 ofthe GovernmentCodeand its implementing regulations. 10.The Contractorshall notuse thenondiscrimination standards to discriminate,harass orallow hllI1lSSID.ent against any person because ofraee,color,religious,creed, sex,national origin,ancestry,disability (including.IDV and AIDS),medical condition(cancer),age,marital status,or denial offiuniIy and medical care leave and denial of pregnancydisability leave. II.The Contractorshall notenter into any subcontractwith any person or firm decertifiedfrom state contrac!l;pUIlillaDt to GovernmcntCode Section 12990. 12.The C'..ontractor shall 'carry out suchsanctionsand penalties forviolation ofthese specifications andthenondiscrimination clausc,includingsuspension,termination and cancellation of existingsubcontracts as maybe imposed or ordered purnuant to GovernmentCode Section 12990andits implementing regulations bythe awarding agency.AnyContractorwho fails to carry out such sanctionsand penalties shall bein violation of these specifications and GovernmentCode Section 12990. 13.The Contractorshall designate Ii responsible official to monitor all employmentrelated activityto ensure thatthe companyequal emPloymentopportunitypolicyis being carried out,to submitreports relating tothe provisions hereofas mayberequired byOCP andto keep records,. Records shall at least include foreachemployeethe name, address,telephonenumbers,constructiontrade,union affiliation if any,employee identification numberwhen lISlIigned,social security JIUDlber,race,sex,status,(e.g., mechanic,apprentice~ee,helper orlaborer),dates of changesin status,hours wolkedperweekin the indican;d trade,rate ofpay,and locations at which the worlewas performed.Recordsshall be maintainedin any easily understandable and retrievable form;however,to thedegree that existing records satisfythis requirement,contractors shall notbe required to maintain-separate records. ,! 'I~! ,I~i H STAFF REPORT AGENDA ITEM 10a TYPE MEETING:Regular Board Meeting SUBMITTED BY:Mark Watton, General Manager MEETING DATE: W.O./G.F.NO: March 4,2009 DIV.NO. SUBJECT:Board of Directors 2009 Calendar of Meetings GENERAL MANAGER'S RECOMMENDATION: At the request of the Board,the attached Board of Director's meeting calendar for 2009 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2009 Board of Director's meeting calendars and amend the schedules as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. General Manager Attachments:Calendar of Meetings for 2009 G:IUserDataIDistSeclWINWORDISTAFRPTSIBoard MeetingCalendar3-4-09.doc Regular Board Meetings: January 7,2009 February 4,2009 March 4,2009 April 1,2009 May 6,2009 June 3,2009 July 1,2009 August 5,2009 September 2,2009 October 7,2009 November 4,2009 December 2,2009 Board Workshops: Board ofDirectors,Workshops and Committee Meetings 2009 Special Board or Committee Meetings (3 rd Wednesday of Each Month or as Noted) January 21,2009 February 18,2009 March 18,2009 April 22,2009 May 20,2009 June 17,2009 July 22,2009 August 19,2009 September 23,2009 October 21,2009 November 18,2009 December 16,2009 Budget Workshop,TBD Board Retreat Workshop,TBD G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting CalendarAttach A for 2009 3-4-09.doc Page 1 of 1 AGENDA ITEM 11a TYPE MEETING:Regular Board SUBMITIED BY:Sean Prendergast, STAFF REPORT MEETING DATE: W.O.lG.F.NO: March 4,2009 DIV.NO.All APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBJECT: payroll/AP superv~~ Joseph R.Beachem,~fiief Financial Officer German Alvarez~antGeneral Manager Director's Expenses for the 2nd Quarter of Fiscal Year 2009 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 2nd quarter of Fiscal Year 2009. 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: Compli Gener with State law. Attachments: A)Committee Action Form B)Director's Expenses and per Diems C-H)Director's Expenses Detail Ii I~.J~, :1Ii I !: ~; f! ATTACHMENT A SUBJECT/PROJECT:Director's Expenses for the 2nd Quarter of Fiscal Year 2009 COMMITTEE ACTION: This item was presented to the Finance,Administration and Communications Committee at a meeting held on February 19,2009. The expenses for each director from July 1,2008 thru December 31, 2008 was presented.It was indicated if directors'expenses continued at the current level,the total for the fiscal year is projected to be just under $30,000.The committee requested that staff provide a chart showing the directors total expenses from 2001 to 2009.The committee recommended that this item be presented to the full board as an informational item. Y:\Board\CurBdPkg\FINANCE\CommMtgDirExp030409.doc ) I ATTACHMENT B BOARD OF DIRECTORS' EXPENSES AND PER-DIEMS FINANCE,ADMINSTRATION,AND COMMUNICATIONS COMMITEE MEETING MARCH 4,2009 Policy 8 requires that staff present the Expenses and Per-Diems for the Board of Directors on a Quarterly basis: •Fiscal Year 2009,2nd 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 February 19,2009. Board of Directors'Expenses and Per-Diems Fiscal Year 2009 Quarter 2 (Oct 08-Dec 08) •Director Bonilla •Director Breitfelder •Director Croucher •Director Lopez •Director Robak •Total $0.00 $1,493.23 $1,100.00 $1,015.39 $2,827.83 $6,436.45 Director Bonilla Fiscal Year 2009 Quarter 2 Oct 08 Nov 08 Dec 08 Qtr2 •Mileage Business •Mileage Commute •Conference/Seminars •Business Meetings •Director's Fees • •Monthly Totals 0.00 0.00 0.00 •Quarterly Total $0.00 •Meetings Attended •Meetings Paid*0 0 0 •Fiscal Year-to-Date 2009 (Jul 08-lun 09)$0.00 •*Director Bonilla does not request per-diem reimbursements Director Breitfelder Fiscal Year 2009 Quarter 2 Oct 08 Nov 08 Dec 08 Qtr2 •Mileage Business 46.80 72.54 49.14 •Mileage Commute 17.55 17.55 52.65 •Seminars &Travel •Director's Fees 400.00 300.00 300.00 •Business Meetings 237.00 •Monthly Totals $464.35 $627.09 $401.79 •Quarterly Total $1,493.23 •Meetings Attended •Meetings Paid 14 4 5 3 13 3 Fiscal Year-to-Date 2009 (Jul 08-Dec 08)$4,891.35 Director Croucher Fiscal Year 2009 Quarter 2 Oct 08 Nov 08 Dec 08 Qtr2 •Mileage Business •Mileage Commute •Director's Fees 100.00 400.00 600.00 •Travel &Seminars •Business Meeting •Monthly Totals $100.00 $400.00 $600.00 • •Quarterly Total $1,100.00 •Meetings Attended 1 4 7 •Meetings Paid 1 4 6 •Fiscal Year-to-Date 2009 (luI 08-Dec 08)$4,048.25 Director Lopez Fiscal Year 2009 Quarter 2 •Quarterly Total •Meetings Attended •Meetings Paid 3 3 4 3 3 3 $1,015.39 •Fiscal Year-to-Date 2009 (Jul 08-Dec 08)$1,798.02 Director Robak Fiscal Year 2009 Quarter 2 Nov 08 23.99 2.34 200.00 •Mileage Business •Mileage Commute •Director's Fees •Travel &Seminars •Business Meetings •Monthly Totals Oct 08 17.55 4.68 400.00 $422.23 Dec 08 181.35 7.02 800.00 1,138.90 37.00 15.00 $263.33 $2,142.27 Qtr2 •Quarterly Total •Meetings Attended •Meetings Paid 7 4 4 2 11 8 $2,827.83 Fiscal Year-to-Date 2009 (luI 08-Dec 08)$3,995.75 Board of Directors'Expenses and Per Diems Fiscal Year 2009 to Date (Jul 08-Dec 08) •Director Bonilla •Director Breitfelder •Director Croucher •Director Lopez •Director Robak •Total $0.00 $4,891.35 $4,048.25 $1,798.02 $3,995.75 $14,733.37 Board of Directors'Expenses and Per Diems *Projected Fiscal Year 2009 (Jul 08-Jun 09) •Director Bonilla •Director Breitfelder •Director Croucher •Director Lopez •Director Robak •Total $0.00 $9,783.00 $8,097.00 $3,596.00 $7,992.00 $29,468.00 •*Based on actual expenses through 2nd quarter Board of Directors'Expenses and Per Diems Fiscal Years 1999-2009 120000 100000 80000 60000 40000 20000 o !l!!l Series1 III Series2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 number is projected ATTACHMENTC SECTIONC OTAY WATER DISTRICT ADMINISTRATIVE EXPENSES -BOARD July 1,2008 -December 31,2008 Jul-08 Aug-08 Sep-08 Oct-08 Nov-OS Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Juo-Q9 Total 1 2 3 4 5 6 7 8 10 11 12 JAIME BONILLA (DETAILED IN SECTIOND): 5211 Mileage-Commuting 5211 Mileage-Business 5212 Travel 5214 Business meetings 5281 Director'sfees 5241 Telephone 5213 Seminarsandconferences Total $ LARRYBREITFELDER(DETAILEDIN SECTIONE): 5211 Mileage -Commuting 58.50 35.10 17.55 17.55 52.65 181.35 5211 Mileage -Business 72.54 184.86 46.80 72.54 49.14 425.88 5212 Travel 788.12 788.12 5214 Businessmeetings 70.00 127.00 77.00 237.00 511.00 5281 Director'sfees 500.00 800.00 400.00 300.00 300.00 2,300.00 5241 Telephone 5213 Seminarsand conferences 685.00 685.00 Total 70.00 758.04 2,570.08 464.35 627.09 401.79 4,891.35 GARYD.CROUCHER(DETAILED INSECTIONF): 5211 Mileage -Commuting 5211 Mileage -Business 105.30 105.30 5212 Travel 607.95 607.95 5214 Businessmeetings 5281 Director'sfees 500.00 400.00 600.00 100.00 400.00 600.00 2,600.00 5241 Telephone 5213 Seminarsand conferences 735.00 735.00 Total 500.00 400.00 2,048.25 100.00 400.00 600.00 4,048.25 JOSE LOPEZ(DETAILED INSECTION G): 5211 Mileage-Commuting 11.70 11.70 11.70 23.40 11.70 70.20 5211 Mileage -Business 22.23 22.23 9.36 53.82 5212 Travel 5214 Business meetings 37.00 37.00 74.00 5281 Director's fees 100.00 300.00 300.00 300.00 300.00 300.00 1,600.00 5241 Telephone 5213 Seminars andconferences Total 100.00 311.70 370.93 311.70 382.63 321.06 1,798.02 MARKROBAK(DETAILED IN SECTION11): 5211 Mileage -Commuting 2.34 4.68 4.68 4.68 2.34 7.02 25.74 5211 Mileage -Business 15.21 9.36 21.65 17.55 23.99 181.35 269.II 5212 Travel 510.90 510.90 5214 Businessmeetings 37.00 15.00 52.00 5281 Director'sfees 300.00 300.00 500.00 400.00 200.00 800.00 2,500.00 5241 Telephone 5213 Seminarsand conferences 10.00 628.00 638.00 5231 Books,Periodicalsand Subscriptions Total 317.55 314.04 536.33 422.23 263.33 2,142.27 3,995.75 TOTALS: 5211 Mileage-Commuting 2.34 74.88 $51.48 33.93 $43.29 71.37 $277.28 5211 Mileage-Business 15.21 81.90 334.04 64.35 118.76 239.85 854.11 5212 Travel 1,396-07 510.90 1,906.97 5214 Businessmeetings 70.00 127.00 114.00 311.00 15.00 637.00 5281 Director's fees 900.00 1,500.00 2,200.00 1,200.00 1,200.00 2,000.00 9,000.00 5241 Telephone 5213 Seminarsand conferences 1,430.00 628.00 2,058.00 5231 Books,Periodicalsand Subscriptions Total 987.55 1,783.78 5,525.59 1,298.28 1,673.05 3,465.12 $14,733.37 OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 ATTACHMENT D SECTION D DIRECTOR'S NAME:BONILLA,JAIME Dec 08Bonilla Page 2 of Pages 11 Printed Date:2/24/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY I,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:BREITFELDER,LARRY ATTACHMENT E SECTION E 7/15/2008 COUNCIL OF WATER UTILITIES $25.00 7/17/2008 WATER AGENCIES ASSOCIATION 45.00 8/19/2008 COUNCIL OF WATER UTILITIES 25.00 8/21/2008 CALIFORNIA SPECIAL DISTRICTS 37.00 8/24/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 65.00 9/18/2008 CALIFORNIA SPECIAL DISTRICTS 37.00 9/19/2008 COUNCIL OF WATER UTILITIES 25.00 9/26/2008 RANCHO SAN DIEGO-JAMUL 15.00 11/13/2008 REGISTRATION FEE -ASIAN BUSINESS ASSOCIATION 175.00 ANNUAL AWARDS 11/18/2008 COUNCIL OF WATER UTILITIES 25.00 11/20/2008 CALIFORNIA SPECIAL DISTRICTS 37.00 8/5/2008 CSDA BOARD MEETING 100.00 8/6/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 8/19/2008 COUNCIL OF WATER UTILITIES 100.00 8/20/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 8/21/2008 CSDA BOARD MEETING 100.00 9/3/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 9/15/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 9/16/2008 COUNCIL OF WATER UTILITIES 100.00 9/18/2008 SPECIAL BOARD OF DIRECTORS MEETING 100.00 9/25/2008 CSDA ANNUAL CONFERENCE SEPT.22-25,2008 400.00 10/9/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 10/16/2008 WATER AGENCIES ASSOCIATION 100.00 10/20/2008 Dec08/Larry B Page 3 of Pages 11 Printed Date: 2/24/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:BREITFELDER,LARRY ATTACHMENT E SECTION E 10/28/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 "i, 11/13/2008 \: \'1 REGULAR BOARD OF DIRECTORS MEETING 100.00 li i!11/18/2008 IiCOUNCILOFWATERUTILITIES100.00 I:11/20/2008 '! CSDA BOARD MEETING 100.00 [I 12/1/2008 lFINANCEANDADMINISTRATIVECOMMITTEEMEETING100.00 ,! 12/9/2008 (!r:FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 H 12/15/2008 1iII REGULAR BOARD OF DIRECTORS MEETING 100.00 Ii 9/31/2008 MEETING -SEPTEMBER 16, 18,22, 23, 24,&25,2008 8/31/2008 184.86 10/31/2008 11/20/2008 12/16/2008 MEETING -AUG.19 &21,2008 MEETING -OCT.16 &20,2008 MEETING -NOV.18 &20,2008 MEETING -DEC.16 2008 72.54 46.80 72.54 49.14 9/31/2008 MEETING -SEPTEMBER 3 &15,2008 35.10 8/31/2008 MEETING -AUG.5,6 &20,2008 58.50 10/9/2008 MEETING -OCT.9,2008 17.55 11/13/2008 MEETING -NOV.13,2008 17.55 12/15/2008 MEETING -DEC.1,9 &15,008 52.65 Dec08/LarryB Page 4 of Pages 11 Printed Date: 2/24/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:BREITFELDER,LARRY ATTACHMENT E SECTION E 9/22/2008 9/24/2008 9/25/2008 REGISTRATION FEE -CSDA ANNUAL CONFERENCE 9/22- 25/08 REGISTRATION FEE -CSDA GOVERNANCE FOUNDATIONS WORKSHOP SEPT.22,2008 REGISTRATION FEE -CSDA CALIFORNIA WOMEN LEAD PANEL 425.00 225.00 35.00 788.12ACCOMODATIONS-CSDA ANNUAL CONFERENCE IRVINE Iml••tll•••1l••••t ••••••IN.S.E.PTI2.-.20.0.8.11l1'••••••••••111111 Dec 08/LarryB Page 5 ofPages 11 Printed Dale: 2124/20098:42 AM DIRECTOR'S NAME: OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 CROUCHER,GARY ATTACHMENT F SECTION F Dec 08/Gary C 7/2/2008 7/16/2008 7/22/2008 7/23/2008 7/28/2008 8/6/2008 8/18/2008 8/19/2008 8/22/2008 9/3/2008 9/4/2008 9/5/2008 9/6/2008 9/17/2008 9/18/2008 10/28/2008 11/3/2008 11/13/2008 11/20/2008 12/1/2008 12/8/2008 12/9/2008 12/10/2008 REGULAR BOARD OF DIRECTORS MEETING COMMITTEE AGENDA REVIEW ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE MEETING LEGAL AND LEGISLATIVE COMMITTEE BOARD AGENDA REVIEW REGULAR BOARD OF DIRECTORS MEETING COMMITTEE AGENDA REVIEW ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE MEETING AD HOC -GM PERFORMANCE REVIEW COMMITTEE REGULAR BOARD OF DIRECTORS MEETING SEMINAR -SPECIAL DISTRICT &LOCAL GOVERNMENT INSTITUTE SEMINAR -SPECIAL DISTRICT &LOCAL GOVERNMENT INSTITUTE SEMINAR -SPECIAL DISTRICT &LOCAL GOVERNMENT INSTITUTE ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE MEETING SPECIAL BOARD OF DIRECTORS MEETING LEGAL AND LEGISLATIVE COMMITTEE MEETING ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE MEETING REGULAR BOARD OF DIRECTORS MEETING ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE MEETING LEGAL AND LEGISLATIVE COMMITTEE MEETING BOARD AGENDA REVIEW CSDA BOARD MEETING MEETING WITH MAYOR SANDERS Page 6 of Pages 11 $100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Printed Date: 2/24/20098:42 AM ;1 iIiI' I, DIRECTOR'S NAME: OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 CROUCHER,GARY ATTACHMENT F SECTION F 12/12/2008 12/15/2008 11/4/2008 9/31/2008 LEGAL AND LEGISLATIVE COMMITTEE MEETING REGULAR BOARD OF DIRECTORS MEETING BOARD AGENDA REVIEW MEETING -SEPT.4 &6 2008 100.00 100.00 100.00 105.30 735.00 9/5/2008 REGISTRATION FEE -SPECIAL DISTRICT AND LOCAL GOVERNMENT INSTITUTE S PT.4-6 .8."••••••••••• Dec 081Gary C 12/8/2008 ACCOMODATIONS -SPECIAL DISTRICT LOCAL GOVERNMENT INSTITUTE FINANCE CONFERENCE FALL Page 7 of Pages 11 607.95 Printed Date: 2124120098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:I LOPEZ,JOSE ATTACHMENT G SECTION G 9/18/2008 11/20/2008 CALIFORNIA SPECIAL DISTRICTS CALIFORNIA SPECIAL DISTRICTS $37.00 37.00 7/22/2005 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 8/4/2008 CITY OF CHULA VISTA INTERAGENCY WATER TASK FORCE 100.00 8/6/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 8/22/2008 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 9/3/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 9/17/2008 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 9/18/2008 SPECIAL BOARD OF DIRECTORS MEETING 100.00 10/9/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 10/16/2008 DEVELOPERS/BUSINESS MEETING 100.00 10/27/2008 CHULA VISTA WATER AGENCIES TASK FORCE MEETING 100.00 11/3/2008 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 11/13/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 11/20/2008 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 12/12/2008 ENGINEERING,OPERATION &WATER RESOURCE COMMITTEE 100.00 MEETING 12/15/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 12/19/2008 MEETING WITH ASSEMBLYWOMAN MARY SALAS REGARDING 100.00 WATER ISSUES Dec 08/Jose L Page 8 ofPages 11 Printed Date: 2/24/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:I LOPEZ,JOSE ATTACHMENT G SECTION G 9/18/2008 , MEETING -SEPT.18,2008 22.23 t!,11/20/2008 Ii MEETING -NOV.20,2008 22.23 12/19/2008 MEETING -DEC.16 2009 9.36 8/6/2008 MEETING -AUGUST 6,2008 11.70 9/3/2008 MEETING -SEPT.3,2008 11.70 10/16/2008 MEETING -OCT.16,2008 11.70 11/20/2008 MEETING -NOV.13 &20,2008 23.40 12/15/2008 MEETING -DEC.15,2008 11.70 Dec 08/Jose L Page 9 ofPages 11 Printed Date: 2/24/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY I,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:ROBAK,MARK ATTACHMENT H SECTION H 11/20/2008 12/12/2008 CSDA BOARD MEETING REGISTRATION FEE -RANCHO SAN DIEGO-JAMUL $37.00 15.00 7/2/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 7/9/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00 7/21/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 8/6/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 8/20/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 8/21/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00 9/3/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 9/10/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00 9/15/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 9/18/2008 SPECIAL BOARD OF DIRECTORS MEETING 100.00 9/19/2008 ANNUAL JOINT MEETING WITH BOARD OF DIRECTORS 100.00 FROM HELIX.LAKESIDE,PADRE DAM &SWEETWATER 10/7/2008 WATER CONSERVATION GARDEN AUDIT COMMITTEE 100.00 MEETING 10/8/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00 10/9/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 10/28/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 11/12/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING 100.00 11/13/2008 REGULAR BOARD OF DIRECTORS MEETING 100.00 12/1/2008 FINANCE AND ADMINISTRATIVE COMMITTEE MEETING 100.00 12/2/2008 ANNUAL LUNCHEON RECOGNIZING NON-PROFIT 100.00 INNOVATION &EXECELLENCE -ATTENDED WITH GARDEN EXECUTIVE DIRECTOR 12/3/2008 ASSOCIATION OF CALFIORNIA WATER AGENCIES -LONG 100.00 BEACH 12/4/2008 ASSOCIATION OF CALFIORNIA WATER AGENCIES -LONG 100.00 BEACH 12/5/2008 ASSOCIATION OF CALFIORNIA WATER AGENCIES -LONG 100.00 BEACH 12/9/2008 Printed Date:Dec 08/Mark R Page 10ofPages 11 2124/20098:42 AM OTAY WATER DISTRICT SUMMARY -BOARD OF DIRECTORS EXPENSES FOR THE PERIOD JULY 1,2008 THROUGH DECEMBER 31,2008 DIRECTOR'S NAME:ROBAK,MARK ATTACHMENT H SECTION H 12/15/2008 WATER CONSERVATION GARDEN COMMITTEE MEETING REGULAR BOARD OF DIRECTORS MEETING 100.00 100.00 9/31/2008 MEETING -SEPT.6,10,15,18 &19,2008 21.65 7/31/2008 MEETING -JULY 2,9 &21,2008 15.21 8/31/2008 MEETING -AUGUST 6,20 &21 2008 9.36 10/31/2008 MEETING -OCT.7,8,9 &28,2008 17.55 11/30/2008 MEETING -NOV.12, 13,&20,2008 23.99 12/31/2008 MEETING -DEC.1,2 3 5 9,10 &15 2008 181.35 9/31/2008 MEETING -SEPT.3 &15,2008 4.68 7/31/2008 MEETING -JULY 4,2008 2.34 8/31/2008 MEETING -AUGUST 6 &20,2008 4.68 10/31/2008 MEETING -OCT.9 &28,2008 4.68 11/13/2008 MEETING -NOV.13,2008 2.34 12/31/2008 MEETING -DEC.1 9 &15,2008 7.02 9/26/2008 12/5/2008 12/8/2008 RANCHO SAN DIEGO-JAMUL MEETING 2008 ACWA FALL CONFERENCE DEC.2-5,2008 10.00 628.00 510.90ACCOMODATIONS-ACWA FALL CONFERENCE LONG ••'illlftll.lllilltlll.Il.lllI1IJlllll.BEIAjilii.11 .IIi!l°0~••••••1I111••lliliil Dec08/Mark R Page 11 of Pages 11 Printed Date: 2/24/20098:42 AM OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM EXHIBIT-B OCT I fj -2008 Pay to:larry 1:lreitfelder Employee Number:7013 Period Covered: From \0-/to fo~so-ot ~:l 'i"'\};.#1 0w\(..,,'~}\~~ TOTAL MEETING PER DIEM:$~00.01 ($145 per meeting) TOTAL MILEAGE CLAIMED:\~0 miles 1:f-,2~\)W D RA, Purpose I Issues Mileage Home to own Other Date Meeting Name Discussed own to Home Locations ~M(~~.,CV env ~(..;\/i~q Ow'O ~o(),-30 \"firs+-;-,i~~.J' 7t-z..S 15 r h-U+- 16 QW ()fle-tveJ /ivr{)kll.I-e..f\r>\- \1,LAJr:\-fr"J4.~v~1 !9J(.?(.f'1Jc.l\v h-cJ-Le..li'e.-'")1 rS~t '"r1 Vv-.+- rx ~RA ,~26 ~,,-(,.ifJ1 ~c.."'A '10 Zl.-fl,.wF 2:~c-)VI n:. FOR OFFICE USE;TOTAL MILEAGE REIMBURSEMENT.$___ INSTRUCTIONS ON REVERSB fJt?OD().I 6 i OtJC)·2---10 I·?-~%I tJ / j1If)()DO'i)~/tJ [)t).7--1 (Y I·5;;.L1 /0 ,;J- OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM J 0/")./)/) '7".!;?/~XHIBITB Pay To:Larry Breitfelder Period Covered: Employee Number:7013---------- Date:---=-1_-_":"---4--- miles\5f1TotalMileageClaimed: Total Meeting Per Diem: ($100 per meeting) ITEM DATE MEETING PURPOSE /ISSUES MILEAGE.MILEAGE DISCUSSED HOMEloOWD OTHER OWDto HOME LOCATIONS 1.(1A bY CSO /}~. 2.(fiJ OlAJ{)6'70 Ij)'30 \:....7' (\)CJ,ly J1.iAl/3.1"-7 '~")(/.,1,.1(/1 /(jl.(j ltU'\oJ,ct ~lM1~fui)D~4.(I~ 5.XO G{(lf 6.(iQ)GSDA·Yo 7. 8. 9. 1~tJ.(\'\S 0·*10. 11.100·00 X 12.Jt 3·= 300·00*/- 13. 14.ltV 0-* 15.i~J\t 30·x0.585~II 16.I ; 1'1"55*I 17.I ..~~----- 18..-- FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_ .~\ .2-/0/'5,;;LfJ I D J -..3c-"C1.°1)/ 8 I 0 [.0 D .._5;i.~~- . .~I 0 /.5;:2...-)I t-).;,;L--.EXHIBIT B ~ /)!J I [(sfi\?WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered:Pay To:Larry Breitfelder Employee Number:7013---------From:Jl-J-0%To:/2 -31-:Jf{ 90 .- 0'5850= 52-65*/ Total Meeting Per Diem:$'3 0o,otJ ($100 per meeting) ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED HOMEloOWD OTHERr---..OWD to HOME LOCATIONS 1.l);/)GwO Nt)l :;;(tlU'ICtt J\-d.m iYI ~~t1l1U11 ~~..lWIi\Jvi J ·~o 5 v 2.Mh i/'-IJ k ~ 3.g C6rfrV 4.1 [(0 A 5.ro ()I-J0 61'l r:-A~C;~m 1Wa,)·50 6.\T /4 He 0-* 7.1~(vm 8.'3 ,"~vo J1 I 4'/<1 nqv:.+.../v v Ii Ie //, \~s:tsf/d{)~QyY f(\'J9.100'x •, 10.)S-CAe 3-=./.t,~ 11.C\~~o\,v\')&0 \0 _JJ 300·00*51'0 12.Ih'~~c vv·J.0'*Elf~FAA ; 13.c/'o i 0-*i 14. • 15.a~30'+ 30-+16.~\\J.30'+ 17.90'* 18.c ' •v j~ Total Mileage Claimed: Date:_ FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_ 2-/{)/ ...~7-rf /0/ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM I {j{./V{.-J EXHIBITB Pay To:Gary Croucher Period Covered: Employee Number:7011----------From:10/01/08 To:10/31108 ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED HOMllloOWD OTHBR aWOloHOMB LOCATIONS V 10/28 Committee Legal and Legislative Committee Meeting 1 ~~5'l'~J]'P-0-* 100-00){ 1-:=/ 100·00* $100 mileso Total Meeting Per Diem: ($100 per meeting) Total Mileage Claimed: (Dir <:iPr's Signature) Date:I~1'/Z¢£:;?4,(~t:-"IIbO IN e>~ FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,f)1 ~?I)V C14-V'Z tfl<)2J (~jc/?/) GM A~lf~~U*----:'.L---_---_ OTAY WATER DISTRICT BOARD OF DIRECTORS PER~DIEMAND MILEAGE CLAIM FORM /0 :3'0 C;J 0 .2--/r..::J /5-7-%/ D(~O0./J VI: EXHIBITB i Pay To:Gary Croucher Period Covered: Employee Number:7011-----------From:11/01108 To:11/30/08 Total Mileage Claimed:0 miles------ ($100 per meetmg) Ilatk..\P'~-k:Jr- GM AppfOVii\:_--f'~<...:....-,,--I_~------, ITEM DATE MEETING PURPOSE 1 ISSUES MILEAGE MILEAGE DISCUSSED HOMEI.OWO OTHER OWD 10HOME LOCATIONS /11/3 Committee Engineering and Operations Committee 1 " 2 1114 GM Board Agenda Briefing 1/3 11/13 Board Board ofDirectors Meeting vV4 11120 Committee Engineering and Operations Committee ~v-J~'7J"100'Oox: 4·= 400 ·00*/ $400 ./6 Total Meeting PerDiem: ~ it . FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_ Pay To:Gary Croucher OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: EXHIBITB Employee Number:7011-----------From:12/01108 To:12/31108 ! j iI!I II II I i!IIII !!\! ,tor's Signature) Date:I 2..-},"1/~ 1 t mileso $600 Total Meeting Per Diem: ($100 per meeting) Total Mileage Claimed: FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_ MJ'~1'--!'-tx/s;:::.--GM ApptOva)!--"'~---:_ ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED HOMElOOWD OTHER OWD10 HOMIl LOCATIONS v'1 12/1 Committee Legal and Legislative Committee V 2 12/8 OM Board Agenda Briefing 0/-3 12/9 CSDA CSDA Board ofDirectors meeting v'4 12/10 Presidents Meeting with Mayor Sanders -future projects aI 5 12/12 Committee Legal and Legislative Committee 12/12 Committee Engineering and Operations Committee v'6 12/15 Board Regular Board ofDirectors Meeting Y/~ry 0-* 100·0a x 6>=./ I 600·00* l I ~V'~/~/t .r)/ I Nc 1408 01 :21 p 5 p,1 116()t)0 /JO £-/O{Jt:)'2--/(j)/:7~;f/(!J / /TI!J DOl)/13 -7-vt)[)·2--(0 / -!:T.;J-//D :J- ,Pay To:'Jose Lopez OTAY WATER DISTRICT BOARD OFDmECTORS PER-DIEM AND MILEAGE CLAIMFORM Period Covered: ExiIIBITB Employee Number:7010-----------From:10/01108 To:10131/08 ITEM DATE MEETIN(PURPOSE I ISSUES DISCUSSED MILEAGE HOMEtoOWD OWD to HOME MILEAGE OTJffiR LOCATIONS --V V '1-. V 3. 4. 5. 6. 7. 10/9 10/16 10/27 own "'',.- own CVWATF Board MeetinJ?; DeveiopersfBusiness meetinJ!: Chula Vista Water AJ?;encies Task Force meeting ", o 20 o 8. 9. 10. :j j/ 11. 12. 13. 14. 15. 16. I J .J ~:.: Total Mileage Claimed:20 miles'/- a-I1~47t{t{L -3 ( ;Pc~r;{bJr-/I '~. j<Pire.ctor's Siglll8ture)/ GMRedept:"'l~-=---------------Date:J11/llff08 l g.f~O!.J _;.;_;_=:r;;;~":",0,'--"~~t!E; 11. 18. Total Meeting Per Diem:--::..$.:;.:30:..:0=--_ (S100 per meeting) I //3 ¥()0 D,2-:/(;)I ~,!::t;;:Lr~//0 /,,-...2 (.,)fJ?i3 ()()C).1999 12:54AM P1MFElXN0;2'.C'/_,'/..:;:;Jun.11 ~.?()t)t).I 18 J..jt)C){/.-/> ..-5.P-/?-(~g '7'-tJ..., "P.:\!Il III •...GI EXHIBITB~~""~OTAY WATER DlSTRICTDI~;c BOARD OF DIRECTORS 1Pay To:Jose I.l0p~z .J:1f.MANDMfi.EAGE CLAIM FORM Period Covel'ed: jEmployoo Number:70\0 From:l:L101l08 To:11/30/08,.--'".j rl--..• PURFOSE I ISSUES MlL:EAGEiITEMDATEMEETING MlLEAGE DISCUSSED H(JIIIl!;IQOWD ~ll:HER,.j-9.l~10 ),{ClMJ;,,~....r'ltlNS'--~.-- V 1.11/03 own Committee meeting 0 ~r-._. 1/~.11/13 OWn .Board meetiu,Q,20-- I 3..11/20 own Committee meeting 20.","~f4...-.,.,.,..,-- "1'1/20 _.,"_.."........._...-...-,._..•,"".l£.,.~$CSDA Quarterly meeting,____,. , \_;:f!5. ~,.,-~'" I 7.- 8........_-y~0·* .....j9'~.,)DjQltj\ 10O·OOx 10~3·=t--........ tl~300 0 00*r".-"- 2.~0-*,, "p1fi~~~3...~ 14~20·+ 20·+, is~40·*.~.,- ita.,40·x \ 17,o·?~50=~: i8:23·4* .'----'- FRO Total Meeting Per l>iem:$300,.._ ($100 permeeting) miles78tNhbMileageClaimed: n GMReciept:---f+Je,l1JA-)~-'---- l?OR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,----,llr~r 'I l/ I 06D-/1315v {)O-7--/0/·!)-;lSlo/' .',Or-/,n ?7Z)c)().2-10/'6-;:L//{);;L-- , /L);'':;'7 .OTAYWATERDISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM /-IOO.DO 7,iPti Pay To:Mark Robak Period Covered: Employee Number:_7;....0_1_4_10_0_8 _ 3217 Fair Oaks Lane,Spring Valley,CA 91978 From:_1_0_-1_-0,-8__To:10-31-08 ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED IIOMEtoOWD OTIIER OWDto HOME LOCATIONS V ./I 10-7 Water Conservation Garden Discuss annual audit with Executive 0 9 Audit Committee Director,Treasurer and Auditor ,#2 10-8 Water Conservation Garden Monthly Meeting /General Business 0 9 (See Exhibit A -Agenda) j 3 10-9 Monthly Otay Board Meeting General District Business 4 6 4 10-16 Tour ofprogress at 640 Construction update with former Division 0 0 Reservoir site 5 Director,John Lamp -NO CHARGE 5 10-22 Water Conservation Garden Reception for Candidates for 52nd 0 0 Congressional District -NO CHARGE 6 10-25 Water Conservation Garden California Friendly Gardening Festival-0 0 NO CHARGE IIv 7 10-28 Finance &Administration Monthly meeting involving finance &4 6 Committee administration issues U;f ::r': ?PvH~1",tLe"L ~r}J " ,.~."'If';: t1 (lC":v1't-c.~\t Q;i i)) •,j !i :.:"0 _",/ 8 30c.)"1'/Total Meeting Per Diem:$400 ,j - j 'j '" (Director's Signature) Date:..:./...,IJ~J7-1-J-2P-O-8---- tJ ~))1 ...• 38 ($100 per meeting) Total Mileage Claimed: FOR OFFICE USE:TOTAL MILEAGE REI ~~GM~:--;if-~"'::""'------ 6-;2/I Dc?--02 ~..3 ~ 18 -S--vo (:J •:2-1 c)/·-(.Le.~ej'rttL 12/15/0'{ OTAY WATER DISTRICT (fU BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Mark Robak Period Covered: Employee Number:70141108--'--.--'--'-------- 3217 Fair Oaks Lane,Spring Valley,CA 91978 From:11-1-08 To:11-30-08 ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED HOME !o OWD OTHER OWDloHOME LOCATIONS 1 11-12 Water Conservation Garden Monthly Meeting /General Business 0 9 (See Exhibit A -Agenda) 2 11-13 Monthly Otay Board Meeting General District Business 4 6 3 11-13 Water Conservation Garden SDG&E Lighting Reception -NO 0 0 CHARGE 4 11-20 CSDA Dinner Meeting Greg Cox &Steve Peace County and State 0 26 Perspectives -NO CHARGE 0'*III I 1~:,100-00X ..,\~\.I 2'=1ft 200 0 00)(' I VQf"0-* ~vA 4·x O'5850=X 2-34* , 4 41 Total Meeting Per Diem:$200 GM ~/MJt;ts- I --'-44.:.-miles ($100 per meeting) Total Mileage Claimed: (Directo 's Signature) I 27 2.ooJDa~e:-.f--I:-------- (oJ'Uc"rl,llt,...~~ &vl 'T"'l'~/1 J'r iA'So-r) FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$_ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM I C3 ?uO{J -2-/(:;)j- I i3 /:)D ()cJ,?it)I· ~-,;2 R /()/ 6-02-II ()/P- d{~O·OO 7"o~ Pay To:Mark Robak Period Covered: Employee Number:_7.:..:0:;:1;.:4..::;12::.;0::.;8:..-_ 3217 Fair Oaks Lane,Spring Valley,CA 91978 From:....;1:;.=2:....;-1::....-0::..::8:.....-._To:12-31-08 Iii Iit I ITEM DATE MEETING PURPOSE /ISSUES MILEAGE MILEAGE DISCUSSED HOMEtoOWD OTHER OWDloHOME LOCATIONS /1 12-1 Finance &Administration Monthly meeting involving finance &4 6 Committee administration issues--- 2 12-2 Salute to Excellence Bahia Annual luncheon recognizing nonprofit 0 29 Hotel innovation and excellence -Attended with Garden Executive Director (Exhibit A) VV 3 12-3 Association ofCalifornia Fall Conference -Long Beach 0 127 Water Agencies (See Exhibit B -Agenda) V 4 12-4 Association ofCalifornia Fall Conference -Long Beach 0 0 Water Agencies v I 5 12-5 Association ofCalifornia Fall Conference-Long Beach 0 127 Water Agencies ~6 12-9 Finance &Administration Monthly meeting involving finance &4 6 Committee administration issues j 7 12-10 Water Conservation Garden Monthly Meeting /General Business 0 9 (See Exhibit C -Agenda) 8 12-12 Rancho San Diego-Jamul Cuyamaca College -No Charge 0 0 Chamber Holiday Breakfast 9 12-13 Annual Otay Holiday Party Lafayette Hotel-No Charge 0 0 II'10 12-15 Monthly Otay Board Meeting General District Business 4 6 11 12-29 Lunch with General Manager Discussion ofDistrict business -No 0 0 Charge 12 310 Total Meeting Per Diem:$800 / FOR OFFICE USE:TOTAL MILEAGE REIMBURSEMENT:$,_ 322 ($100 per meeting) Total Mileage Claimed: AGENDA ITEM 11 b TYPE MEETING:Regular Board 5TAFF REPORT MEETING DATE:March 4,2009 SUBMITTED BY: APPROVED BY: (Chief) Ron Ripperger ~ Engineering Manager Rod posad~~~. Chief,Engineering PROJECT:P2210 DIV.NO.ALL APPROVED BY: (Asst GM) SUBJECT: Manny Magana~~ Assistant General Mtrager, Informational Item -Second Capital Improvement Program Engineering and Operations Quarter Fiscal Year 2009 (CIP)Report GENERAL MANAGER'S RECOMMENDATION: That the Otay Water District (District)Board of Directors accepts the Second Quarter Fiscal Year CIP Report for review and receives a summary via PowerPoint presentation. COMMITTEE ACTION: Please see Attachment A. PURPOSE: To update the Board about the status of all CIP project expenditure highlights,significant issues,progress,and milestones on major projects. ANALYSIS: To keep up with growth and to meet our ratepayers'expectations to adequately deliver safe,reliable,cost-effective,and quality water, each year the District Staff prepares a six-year CIP Plan that identifies the District infrastructure needs.The CIP is comprised of four categories consisting of backbone capital facilities, maintenance projects,developer's reimbursement projects,and capital purchases. The Second Quarter Fiscal Year 2009 Report is intended to provide a detailed analysis of progress in completing these projects within the allotted time and budget. Expenditures through the Second Quarter of Fiscal Year 2009 totaled $8.2 million.This is 27%of the $31 million Fiscal Year -2009 budget.The decrease in projected expenditures is due primarily to delay in the 36-lnch Pipeline Project (elP P2009). FISCAL IMPACT.~ None. STRATEGIC GOAL: The elP supports the mission of providing the best quality of water and wastewater services to the customers of the District in a professional,effective,efficient,and sensitive manner,in all aspects of operation,so that public health,environment,and quality of life are enhanced. LEGAL IMPACT: None. P:\ClP\ClP Quarterly Reports\2009\Q2 FY2009\Staff Report\BD 03-04-09,Second Quarter FY2009 ClP Report, (RR).doc RR/RP:jf Attachments:Attachment A Presentation 2 P2210 ATTACHMENT A [SUBjEicTj;PR.6jECT:TTIn;lff;~o~··r·;;m~;att···~i····~o~;n~:a~ll lI·ttem -Second Quarter Fiscal Year 2009 Capital Improvement Program (CIP)Report COMMITTEE ACTION: The Engineering,Operations,and Water Resources Committee reviewed this item in detail at a meeting held on February 20, 2009.It was noted that the City of El Cajon has signed off on the design of the 36"pipeline and the bids are expected to go out for the construction of the pipeline in February.Staff is continuing to coordinate with CalTrans,City of El Cajon,CWA, and other agencies to incorporate comments into the project design.It was indicated that there are no new projects anticipated in the near future for the eastern portion of the City of Chula Vista.Current projects include the 450-1 Reservoir Disinfection Facility and the pipeline conversion project on Lane Avenue from potable to recycled.The Otay Mesa area future projects include the recycled supply link project which will bring reclaimed water from the South Bay Water Reclamation plant into the Otay Mesa area and ground water exploration projects.The committee recommended presentation of the CIP update report to the full board. ITEM lIb Fiscal Year 2009 2nd Quarter elP Update Report Please reference Attachment 2 "PowerPoint"posted to Otay Water District website. ~I~'I,',-,'I:1'-:i ,, "i !~: I: AGENDA ITEM 12 STAFF REPORT TYPE MEETING: SUBMITTED BY: SUBJECT: Regular Board Meeting Mark Watton, General Manager General Manager's Report MEETING DATE: W.O.lG.F. NO: March 4,2009 N/A DIV. NO. N/A GENERAL MANAGER: FLAGSHIP PROJECTS: Update on the design of the 36-Inch Potable Water Pipeline from FCF #14 to Regulatory Site (CIP P2009)for the month of January 2009: •After soliciting three bids from contractors for the Otay Flow Control Facility No.14 Temporary Reconnection,TC Construction was selected as the lowest bidder with a contract amount of $14,000. •The District is working with Caltrans to obtain final approval on a new permit.After a permit is issued to the District,the project will be advertised for bids. •Staff is coordinating with CWA to include their comments on the final plans where the 36-inch pipeline crosses CWA's aqueduct.In addition,CWA has been very helpful in processing three (3)Joint Use Agreements to establish rights where the 36-inch pipeline will be in their right- of-way. ADMINISTRATIVE SERVICES,INFORMATION TECHNOLOGY AND FINANCE: Administrative Services: Human Resources: •Human Resources and Safety/Risk Administration presented a training session for all managers,supervisors and leads regarding "What Supervisors Need to Know About Liability and Workplace Accidents".A separate shorter session was also held for all field employees that emphasized the importance of remaining safe in the workplace,reporting workplace incidents,and potential liabilities. •New Hires February: part of a Authority, districts. There were two new hires in Water Conservation Interns.The partnership between San Diego Cuyamaca College and several the month of interns are County Water local water Purchasing and Facilities: •Changes to Restroom Fixtures The District's urinals have been replaced with low-flush fixtures.A low-flush toilet is currently being tested for future retrofitting. •There were 113 purchase orders processed in February 2009 for a total amount of $4,102,938.31.Included in the total is a purchase order in the amount of $987,807.00 for Professional Environmental Consulting Services for the San Miguel Habitat Management Area (P1253)as approved by the Board on January 7,2009 and another purchase order in the amount of $2,373,220.00 for the construction of the 1296-3 Reservoir 2.0 MG Water Shortage Facility (P2143),as approved by the board on December 15,2008. Safety &Security: •Driver Awareness Training for all Operations,Survey,and Customer Service drivers was successfully completed.The presentation by CHP Officer,Brian Penning,was conducted on January 28,2009. •San Diego County Inspection conducted an inspection of the 1530-1 and 1655-1 Hydro Stations,944-1 Pump Station, Hidden Mountain Sewer Lift Station,and re-inspected the Regulatory site.No citations or issues were noted.80% of the HMBP permits have been updated. •The newly revised Safety Manual was posted on the Inet on February 5,2009. 2 Water Conservation: •The District sent out letters to its top single-family, mixed use,potable irrigation and commercial accounts making them aware that the rate increase could be larger than the average 12.4%if they do not reduce their usage below 2008 levels.For the single-family customers,we offered a free residential survey and about 500 letters have been mailed to date.The non-residential customers are encourage to contact us to schedule a meeting to discuss the rate increase as well as our available water conservation programs in more detail. •Water Conservation Program Activity -To date,this fiscal year,nine smart controller rebates have been processed as well as over 30,000 square feet of artificial turfgrass for single-family customers,170,000 square feet of artificial turfgrass installed at Eastlake and Monte Vista High Schools,20,000 square feet of turfgrass replaced with water-wise plants,559 rotating sprinkler nozzles,257 high efficiency washers and 91 high efficiency toilets. •Targeted marketing to the District's top single-family accounts -In late February,the District mailed an oversized postcard promoting both the smart controller and rotating nozzle rebates to its top 30%single-family accounts (summer 2008 water use).About 14,000 accounts received this postcard. •Water Conservation Interns -Two interns,fully funded by the Water Authority started working this month to add the District's irrigation-only accounts into the Water Authority's Water Smart Target Program,an online tool that will allow the District to better target its smart landscape program to its large landscape customers. •Staff attended the San Diego Chapter of the Community Association Institute's Trade Show titled,"Water Conservation:Go Green or Pay Green",as well as a Sustainable Landscape Design Seminar,"Native Plants for Public Space",and the California Irrigation Institute's Annual Meeting. In£or.mation Technology and strategic Planning: •Meter Reading Automation -IT is working with Operations to improve the process of automation for meter reading and changing manual to automated meter reads.This complex process will be carefully documented and analyzed 3 for opportunities to improve the efficiency and accuracy of the process. •Employee Benefits Statement -IT has completed work on the updating of the Employee Benefits statement.Work done last year has been updated and saved considerable Ii:. time in creating this year's statements.j •IMS Training -IT staff are training Engineering staff in both inspection and survey for use of the IMS system. Once training is completed,staff will transition to using IMS for all inspection and survey work orders. •Records Retention -IT staff is meeting with all of the Departments to implement the new records management systems.A team of administrative workers from all departments is reviewing the new user interface prior to full implementation.Scanning of the existing records in the Records room is almost complete. •Strategic received. February. Plan -Second quarter measurements have been Staff will be issuing a report to the Board in •AWWA Peer Review -Senior team members have reviewed an initial proposal from AWWA to conduct a self-assessment peer review of the District.The cost will be approximately $7,000.A contract to conduct this review will be issued in the next month. •Field Laptops -IT staff is in the final stages of assessing new hardware for our field laptops.We are leaning toward ordering replacement Panasonic Business Toughbooks.Preliminary testing is positive and will improve our field platform considerably.In addition, applications are being modified to address both speed, connectivity,and accuracy issues of the GIS and work order data. Finance: •Outreach to the City of Chula Vista -Otay staff met with the City of Chula Vista's Open Space Division personnel. Staff discussed a range of topics centered around ways to mitigate the economic challenges faced by the City.Otay Conservation staff discussed ways the City can reduce wa ter usage,and Customer Service staff focused on rate increases and potential impacts of the drought.Staff had prepared an account by account analysis of the many 4 City meters so that the City possible.Staff will have the City to help them with challenges. staff can be as informed as ongoing communicat-ions with conservation and budgetary •Cross-training -Within the Finance department,there are four Senior Accountants,all of whom are Certified Public Accountants.They perform some of the more difficult and complicated tasks wi thin Finance,including:budget preparation,running financial scenarios,monitoring and explaining budget fl uctuations,internal audits, coordination and preparation of external audits,CIP management,payroll backup,etc.All of these tasks are being rotated among these staff members to enhance knowledge depth within the department.Although this effort is challenging and time consuming,it will add tremendous stability to the department. •Budget Award -For the fifth consecutive year,the Finance Department has been presented with the "Distinguished Budget Presentation Award"from the Government Finance Officers Association (GFOA)for the FY 2008-2009 Operating and Capital Budget.This award represents a significant achievement."It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting." The financial reporting for January 31,2009 is as follows: •For the seven months ended January 31,2009,there total revenues of $39,813,098 and total expenses $37,384,268.The revenues exceeded expenses $2,428,830. are of by The financial reporting for investments for January 31, 2009 is as follows: •The market value shown in the Portfolio Summary and in the Investment Portfolio Details as of January 31, 2009 total $81,146,138.70 with an average yield to maturity of 2.659%.The total earnings year-to-date are $1,553,331.19. ENGINEERING AND WATER OPERATIONS: Engineering: •850-4 Reservoir -RSH completed the installation of the ring wall and tank foundation.Site paving is also 5 complete.The reservoir is for increased capacity in the 850 Pressure Zone,as required by the 2002 Water Resource Master Plan.This project is expected to be completed in May 2009.Project is on schedule and on budget.(P2191) •20-Inch Recycled Pipeline Conversion -ARB,Inc. continues with the conversion of a 20-inch potable pipeline to a recycled pipeline in Chula Vista within the District's use area.Project is 94%complete.This project is expected to be completed in April 2009.This project is on schedule and on budget.(R2081) •Calavo Sewer Lift Station -NEWest Construction has completed the installation of the new lift station.The project is complete.This project was completed within budget.(S2 015) •RWCWRF Forcemain/Air Vac and Road Improvement Project - Arrieta Construction has completed the installation of the section valves and is currently replacing the remaining air/vacs RWCWRF forcemain.The project is expected to be complete by March 6,2009.The project is on schedule and on budget.(R2086) •Middle Sweetwater River Basin Groundwater Well Pilot Project Study -The project concept and scope of work has been discussed with Sweetwater Authority (SWA)staff and presented to their Board on February 11,2009.SWA staff will send a letter to the District summarizing their review and comments of our Middle Sweetwater River Basin Groundwater Well Pilot Project Study.An informational Staff Report was submitted to the District's January Engineering,Operations and Water Resources Committee Meeting and will be presented at the District's February Board Meeting.(P212 9) •North District Recycled Water Regulatory Compliance System Development Project,Phase I Concept Study -The results of the Study have been discussed with Sweetwater Authority (SWA)staff and presented to their Board on February 11, 2009.SWA staff will send a letter to the District summarizing their review and comments of our North District Recycled Water Regulatory Compliance System Development Project,Phase I Concept Study.The Regional Water Quality Control Board and the California Department of Public Health have also been provided with the Study for their review and comments.An informational Staff Report was submitted to the District's January Engineering,Operations 6 and Water Resources Committee Meeting ahd will be presented at the District's February Board Meeting.(R20~9) •Water Resources Master Plan Program Environmental Impact Report (PEIR)-PBS&J is working on the PEIR for the Water Resources Master Plan and expects to have the first draft to District staff by mid-February.They are coordinating closely with staff to ensure that the PEIR is an effective document when it is used for the environmental review of future CIP projects. •Otay Water District Recycled Water Infrastructure Program - It has been reported that the proposed federal budget for this current federal fiscal year is $4.479 million for the San Diego Area Reclamation Program for the United States Bureau of Reclamation (USBR)Title XVI Program.The USBR Temecula office staff reports that the District may be allocated 50%of the amount that eventually is approved in the federal budget less the amount the District has already received for this federal fiscal year,which is $0.52 million,operating under the federal budget process of a continuing resolution.Hence,the District may receive an additional $1.72 million for this federal fiscal year if the total remains at $4.479 million and we get 50%of that figure.The USBR Title XVI amount that currently remains to be owed to the District is about $5.05 million. Consequently,the District is closing in on getting our USBR Title XVI money! •For the month of January 2009,the District sold 2 meters (10 EDUs)generating $63,735 in revenue.Accumulated revenue through January 31,2009 was $1,258,242 for 259.0 EDUs and 74 meters.Projection for this period was 196 meters (303.0 EDUs)with budgeted revenue of $1,657,017. Projected revenue from July 1,2008 through June 30,2009 is $2,840,600. •Approximately 49 linear feet of both CIP and developer project pipeline was installed in January 2009.The Construction Division performed quality control for these pipelines. •The following table summarizes Engineering's Project purchases and change orders issued during the period of January 1 thru January 31,2009 that were within Staff signatory authority: 7 I I !~ I Contractor/- Date Action Amount Consultant Project 1-06-09 Check $7,965 SDG&E 1296-3 Reservoir Request (P2143) Check Permits and test 1-08-09 Request $2,304 APCD fees for Engines #20 (P1253) 1-12-09 c.o.#1 $18,339 NEWest Const.Calavo Lift Station Replacement (S2015) Check Helix Water Construction meter 1-20-09 Request $1,684 District at Avocado Blvd. (S2015) Reclamation Plant Office Bldg & 1-23-09 c.o.#3 $10,845 Telliard Const.Recycled Water Operators Offices/HVAC (R2053) Water qperations: •San Diego County Water Authority (SDCWA)conducted a complete treated water shutdown beginning on January 4, 2009 and concluding on January 12,2009.Staff was prepared and maintained 100%service levels to all our customers.Staff also maintained an excellent level of cooperation and communication with our neighboring agencies. •During the SDCWA shutdown,and with the consent of Mexican representatives,flows to Mexico were suspended on Wednesday,December 30,2008 and resumed on Thursday, January 15,2009. •In the month of January 2009 there were 11 new Automated Meter Reading (AMR)meters installed,3 AMR meters were removed and the accounts closed and 1,235 meters were retrofitted to AMR meters.As of February 2,2009 there was a total of 22,951 3-G Master Meter radio-read units installed. •As of January 2009 there are 47,878 potable water meters; eleven new meters were installed and three were pulled. •Potable water purchase (excluding flows to Mexico)for the month of January 2009 was 2,043.6 acre-feet.To date for FY 09,there has been 22,144.3 acre-feet of water 8 purchased. last year. This is a 4.6%decrease from the same period •Potable water use is down by approximately five percent to date this fiscal year as compared to the first seven months of fiscal year 2008.The Water Authority allocation numbers are expected very soon and the calculation will align with the official Water Authority allocation methodology at that time.The District is currently using this number as an indication as to how well it is doing with regard to the 10%voluntary 20 Gallon Challenge target. •Recycled water consumption for the month of January 2009 is as follows: Total flow was 90.6 acre-feet or 29,501,868 gallons and the average daily flow was 951,671 gallons per day. As of January 2009 there are 642 recycled water meters and no meters were installed or pulled during the month of January. Total recycled water consumption to date for FY 2009 is 3066.4 acre-feet. •Wastewater flows for the month of January 2009 were as follows: • • • • • Total basin flow,gallons per day:1,923,000. Spring Valley Sanitation District Flow to Metro, gallons per day:638,000. Total Otay flow,gallons per day:1,284,000. Flow Processed at the Ralph W.Chapman Water Recycling Facility,gallons per day:22,581. Flow to Metro from Otay Water District,gallons per day:1,262,000. For the month of January 2009 there was one new wastewater connection and two disconnections which bring the total count of EDUs to 6,069. General Manager G:\UserData\DistSec\WINWORD\STAFRPTS\GM Report 3-4-09.doc 9 AGENDA ITEM 12 2554 SWEETWATER SPRINGS BOULEVARD,SPRING VALLEY,CALIFORNIA 91977-7299 TELEPHONE:670-2222,AREA CODE 619 February 24,2009 BOLEROHOA 9610 WAPLES ST SAN DIEGO,CA 92121-2955 Dear BOLERO HOA: I hope you have noticed the ad campaign warning of a water shortage for much of California this year.The shortage is due to ongoing drought in the Southwest and court-ordered pumping restrictions related to environmental issues.As a result,in June of 2008,the Otay Water District announced a Level I -Drought Watch for its service area.Since then we have worked with water agencies throughout Southern California to urge customers to save more water,and prepare for mandatory water restrictions this summer. As water supplies become increasingly scarce,the cost of finding alternative sources of water increases.As a result,in December of 2008,the District adopted an average 12.4%rate increase. The new rates went into effect on January 1,2009.In addition,the District adopted Drought Rates to enforce conservation through tiered market-based pricing. Based upon your water use between July of2007 and June of2008,your bill for water service will increase significantly ifyou do not reduce your 2009 consumption below your 2008 level.Please see the attachment for more details.In addition,there is a high probability your rates will further increase based on the severity of the pending water shortage and the announcement of a Level 2 drought with mandatory restrictions and drought rates.To see how the new rates will affect you, use the Rate Calculator on our website at www.otaywater.gov.Please also be aware that water wholesalers are now projecting water rates could increase another 30%in 2010,and we are examining how much of a rate increase we will recommend to our Board of Directors to pass through these increased costs from wholesalers. If you would like to meet to find out more about our water conservation programs or to discuss your account,please call us directly.For questions about the rates,please call Elaine Henderson, Customer Service Manager,at 619-670-2284.For questions about our conservation programs, please call William Granger,Water Conservation Manager,at 619-670-2290. We look forward to working with you. Mark Watton General Manager Attachment I II~fJ I ATTACHMENT BOLEROROA Account 2008 Usage Estimated EstimatedNumber*Site Address (RCF)**Rate Increase Increase 914-0292 oEJ ST 6511 $5,731.26 41% CHULAVISTA,CA 91910 •*Your nine digit account number,found on your water bill,is needed in order to use the Rate Calculator. •**1 RCF equals 100 cubic feet ofwater or 748 gallons.One RCF also equals one unit ofwater. AGENDA ITEM 12 Exhibit A OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR SEVEN MONTHS ENDED JANUARY 31,2009 Annual YTD YTD YTD Budget Actual Budget Variance Var% REVENUE: Water Sales $32,836,500 $18,311,012 $19,697,400 $(1,386,388)(7.0%) Energy Charges 2,047,100 1,209,011 1,227,200 (18,189)(1.5%) System Charges 10,619,400 5,770,076 5,929,800 (159,724)(2.7%) Penalties 906,900 383,045 535,100 (152,055)(28.4%) MWD &CWA Fixed Charges 2,819,500 1,724,092 1,574,300 149,792 9.5% Total Water Sales 49,229,400 27,397,236 28,963,800 (1,566,564)(5.4%) Reclamation Sales 6,344,500 3,708,452 3,865,100 (156,648)(4.1%) Sewer Charges 2,145,300 1,260,814 1,269,300 (8,486)(0.7%) Meter Fees 103,800 41,263 60,550 (19,287)(31.9%) Capacity Fee Revenues 1,301,900 842,754 759,500 83,254 11.0% Betterment Fees for Maintenance 895,900 400,438 522,600 (122,162)(23.4%) Annexation Fees 483,600 136,506 282,100 (145,594)(51.6%) Non-Operating Revenues 1,633,100 3,463,168 890,650 2,572,518 288.8% Tax Revenues 4,137,300 2,256,104 2,286,000 (29,896)(1.3%) Interest 667,800 236,262 245,000 (8,738)(3.6%) General Fund Draw Down 120,100 70,100 70,100 0.0% Total Revenue $67,062,700 $39,813,098 $39,214,700 $598,398 1.5% EXPENSES: Potable Water Purchases $25,183,600 $13,708,679 $15,231,900 $1,523,221 10.0% Recycled Water Purchases 1,490,800 776,140 925,179 149,039 16.1% CWA-1nfrastructure Access Charge 1,227,500 683,458 683,550 92 0.0% CWA-Customer Service Charge 1,049,800 599,165 599,460 295 0.0% CWA-Emergency Storage Charge 1,774,700 1,019,336 1,019,300 (36)(0.0%) MWD-Capacity Res Charge 602,800 348,732 348,400 (332)(0.1%) MWD-Readiness to Serve Charge 665,100 387,968 387,800 (168)(0.0%) Subtotal Water Purchases 31,994,300 17,523,478 19,195,589 1,672,111 8.7% Power Charges 2,780,500 1,749,482 1,717,300 (32,182)(1.9%) Payroll &Related Costs 17,185,400 9,447,706 9,753,250 305,544 3.1% Material &Maintenance 3,872,800 1,953,074 2,152,133 199,060 9.2% Administrative Expenses 5,467,600 2,682,058 2,841,700 159,643 5.6% Legal Fees 467,500 939,972 272,708 (667,263)(244.7%) Expansion Reserve 5,016,700 2,926,400 2,926,400 0.0% Replacement Reserve 277,900 162,100 162,100 0.0% Total Expenses $67,062,700 $37,384,268 $39,021,181 $1,636,913 4.2% Excess Revenue (Expense)$$2,428,830 $193,519 $2,235,310 F:/MORPT/FS2009-0109 2123/2009 4:10 PM OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW JANUARY 31,2009 INVESTMENT OVERVIEW &MARKET STATUS: On December 16th,at the Federal Reserve Board's regular scheduled meeting,the federal funds rate was lowered from 1.00%to "a target range ofbetween Zero and 0.25%"in response to the nation's ongoing financial crisis,as well as banking industry pressure to ease credit and stimulate the economy.This marked the ninth reduction in a row since September 18,2007,when the rate was 5.25%. They went on to say:"The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels ofthe federalfunds rate for some time."There were no further changes made to the federal funds rate at the Federal Reserve Board's subsequent regular scheduled meeting,held on January 28,2009. Despite the large drop in available interest rates,the District's overall effective rate of return on at January 31st was 2.78%.At the same time the LAIF return on deposits has also dropped over the last several months,reaching an average effective yield of 2.05%for the month ofJanuary 2009.Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of interest rate declines,no changes in investment strategy are being considered at this time. In accordance with the District's Investment Policy,all District funds continue to be managed based on the objectives,in priority order,of safety,liquidity,and return on investment. PORTFOLIO COMPLIANCE:January 31,2009 Investment 8.01:Treasury Securities 8.02:Local Agency Investment Fund (Operations) 8.02:Local Agency Investment Fund (Bonds) 8.03:Federal Agency Issues 8.04:Certificates ofDeposit 8.05:Short-Term Commercial Notes 8.06:Medium-Term Commercial Debt 8.07:Money Market Mutual Funds 8.08:San Diego County Pool 12.0:Maximum Single Financial Institution State Limit 100% $40 Million 100% 100% 30% 25% 30% 20% 100% 100% Otay Limit 100% $40 Million 100% 100% 15% 15% 15% 15% 100% 50% Otay Actual o $26.95 Million 1.82% 47.06% 1.34% o 2.48% o 12.95% 0.97% Performance Measure F-12 Return on Investment Target:Meet or Exceed 1000/0 of LAIF 6.00 5.00 til....c: Q)4.00E....tilQ)3.00>c:-c:2.000 c:...1.00:::J.... Q) 0::0.00 -1.00 LAIF Otay o Difference 2nd Qtr FY08 3rd Qtr FY08 4th Qtr FY08 1st Qtr FY09 2nd Qtr FY09 Jan FY09 4.96 4.18 3.11 2.78 2.54 2.05 4.95 4.30 3.59 3.40 3.23 2.78 -0.01 0.12 0.48 0.62 0.69 0.73 Month LAIF .Otay 0 Difference I Otay Water District Investment Portfolio:01/31/09 2.31% o Banks (Passbook/Checking/CD)•Pools (LAIF &County)0 Agencies &Corporate Notes OTAY Portfolio Management Portfolio Summary January 31,2009 Investments Corporate Notes Federal AgencyIssues-Callable Certificates of Deposit -Bank Local Agency InvestmentFund (LAIF) San Diego County Pool Investments Par Market Book %of Days to YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv. 2,000,000.00 2,037,440.00 2,020,336.44 2.53 1,111 668 1.973 2.000 38,000,000.00 38,186,446.00 37,998,735.92 47.51 849 592 3.272 3.318 1,079,108.00 1,079,108.00 1,079,108.00 1.35 391 315 3.152 3.196 28,423,286.96 28,508,938.01 28,423,286.96 35.54 1 1 2.018 2.046 10,455,230.48 10,546,313.76 10,455,230.48 13.07 1 1 2.251 2.282 79,957,625.44 80,358,245.77 79,976,697.80 100.00%437 303 2.659 2.695 Cash Passbook/Checking (not included in yield calculations) Total Cash and Investments Total Earnings Current Year Average Daily Balance Effective Rate of Return 787,892.93 80,745,518.37 January 31 Month Ending 189,194.35 80,084,667.78 2.78% 787,892.93 81,146,138.70 Fiscal Year To Date 1,553,331.19 81,623,539.55 3.23% 787,892.93 80,764,590.73 437 303 0.343 2.659 0.348 2.695 I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board ofDirectors on January 19,2000.The market va~....,$Data Corporation.The inves?nts;v;:;;liquidity to meet the cash flow requirements ofthe District for the next six months ofexpenditures. ~~wfficer Run Date:02/17/2009 -14:27 Portfolio OTAY AP PM (PRF_PM1)SymRept 6.41.200 Report Ver.5.00 OTAY Portfolio Management Portfolio Details -Investments January 31,2009 Page 2 Average Purchase CUSIP Investment#Issuer Balance Date Corporate Notes 36962G2S2 2044 General ElectricCapital 11/16/2007 Subtotal and Average 2,020,768.81 Local Agency InvestmentFund (LAIF) LAIF 9001 STATEOF CALIFORNIA LAIF COPS07 9009 STATE OF CALlFO:..,.R_N_IA _ .~~~.~--,~_.~.._--------- Stated YTM Days to Maturity ParValue MarketValue Book Value Rate Moody's 360 Maturity Date 2,000,000.00 2,037,440.00 2,020,336.44 5.000 Aaa 1.973 668 12101/2010 2,000,000.00 2,037,440.00 2,020,336.44 1.973 668 2,000,000.00 2,001,880.00 2,000,000.00 3.000 2.959 383 02119/2010 2,000,000.00 2,007,500.00 2,000,000.00 3.180 3.136 795 04/07/2011 2,000,000.00 2,002,500.00 2,000,000.00 3.000 2.959 390 02/26/2010 2,000,000.00 2,003,760.00 2,000,000.00 3.020 2.979 397 03/05/2010 2,000,000.00 2,006,260.00 2,000,000.00 3.250 3.205 782 03/25/2011 2,000,000.00 2,008,760.00 2,000,000.00 3.150 3.107 802 04/14/2011 2,000,000.00 2,007,500.00 2,000,000.00 2.900 2.860 620 10/14/2010 2,000,000.00 2,010,000.00 2,000,000.00 3.100 3.058 635 10/29/2010 2,000,000.00 2,008,760.00 2,000,000.00 3.650 3.598 422 03/30/2010 2,000,000.00 2,008,120.00 2,000,000.00 3.500 3.452 607 10101/2010 2,000,000.00 2,011,260.00 2,000,000.00 4.000 3.945 985 10/14/2011 2,000,000.00 2,015,626.00 2,000,000.00 3.400 3.353 60 04/02/2009 2,000,000.00 2,016,380.00 2,000,000.00 3.625 3.575 851 06/0212011 2,000,000.00 2,002,500.00 2,000,000.00 3.250 3.205 754 02125/2011 2,000,000.00 2,009,380.00 1,999,441.25 3.000 2.989 451 04/28/2010 2,000,000.00 2,010,620.00 2,000,000.00 3.100 3.058 465 05/12/2010 2,000,000.00 2,015,000.00 1,999,294.67 3.600 3.570 837 05/19/2011 2,000,000.00 2,016,260.00 2,000,000.00 3.265 3.220 494 06/10/2010 2,000,000.00 2,024,380.00 2,000,000.00 4.000 3.945 516 07/02/2010 38,000,000.00 38,186,446.00 37,998,735.92 3.272 592 79,108.00 79,108.00 79,108.00 3.180 3.180 355 01/2212010 1,000,000.00 1,000,000.00 1,000,000.00 3.150 3.150 312 12110/2009 1,079,108.00 1,079,108.00 1,079,108.00 3.152 315 26,953,080.09 27,034,300.80 26,953,080.09 2.046 2.018 1,470,206.87 1,474,637.21 1,470,206.87 2.046 2.018 28,423,286.96 28,508,938.01 28,423,286.96 2.018 Portfolio OTAY AP PM (PRF_PM2)SymRept6.41.200 Report Ver.5.00 _.-r-..,,,,=.=,.o:=r..--on-~~:..~._,c,~..._ 02122/2008 04/07/2008 02/26/2008 03/05/2008 03/25/2008 0411412008 04/14/2008 04/29/2008 06/30/2008 10101/2008 10/14/2008 10102/2008 06/02/2008 03/10/2008 04/28/2008 05/1212008 05/19/2008 06/10/2008 07/0212008 07/01/2004 03/07/2007 01/2212008 12111/2008 1,079,108.00 42,127,738.68 24,118,403.35 California Bank &Trust Neighborhood Nati_on_a_I_B_a_nk _ FANNIE MAE Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Mortgage Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Federal National Mortage Assoc Subtotal and Average Subtotal and Average Subtotal and Average 2064 2073 2065 2067 2071 2072 2074 2075 2083 2086 2088 2089 2079 2069 2076 2077 2078 2080 2085 Federal Agency Issues-Callable 31398AMX7 31331YB74 3133XPWL4 3133XPX90 3133XQF23 3133XQJ78 3133XQMC3 3133XQUX8 3133XRNM8 3133XS6Q6 3133XSCCO 3133XSFC7 3128X7TT1 31398ANH1 3136F9LP6 3136F9NB5 31398ARD6 3136F9SA2 3136F9WV1 Certificates of Deposit -Bank 205003183 2066 1005581024 2090 Run Date:02/17/2009 -14:27 OTAY Portfolio Management Portfolio Details -Investments January 31,2009 Page 3 Average Purchase Stated YTM Days to Maturity CUSIP Investment#Issuer Balance Date Par Value MarketValue BookValue Rate Moody's 360 Maturity Date San Diego County Pool SD COUNTY POOL 9007 San Diego County 07/01/2004 10,455,230.48 10,546,313.76 10,455,230.48 2.282 2.251--------- Subtotal and Average 10,385,625.00 10,455,230.48 10,546,313.76 10,455,230.48 2.251 Total and Average 80,084,667.78 79,957,625.44 80,358,245.77 79,976,697.80 2.659 303 RunDate:0211712009 -14:27 Portfolio OTAY AP PM (PRF]M2)SymRept6.41.200 OlAY Portfolio Management Portfolio Details -Cash January 31,2009 Average Purchase CUSIP Investment #Issuer Balance Date ParValue Union Bank UNION MONEY 9002 STATE OF CALIFORNIA 07/01/2004 42,536.18 PETTY CASH 9003 STATE OF CALIFORNIA 07/01/2004 2,800.00 UNION OPERATING 9004 STATE OF CALIFORNIA 07/01/2004 717,579.49 PAYROLL 9005 STATE OF CALIFORNIA 07/01/2004 24,977.26 UNION IOC 9008 STATE OF CALIFORNIA 05/01/2006 0.00 Average Balance 0.00 Total Cash and Investmentss 80,084,667.78 80,745,518.37 Run Date:02/17/2009 -14:27 Market Value 42,536.18 2,800.00 717,579.49 24,977.26 0.00 81,146,138.70 Page 4 Stated YTM Days to BookValue Rate Moody's 360 Maturity 42,536.18 0.200 0.197 2,800.00 0.000 717,579.49 0.370 0.365 24,977.26 0.000 0.00 4.500 4.438 80,764,590.73 2.659 303 Portfolio OTAY AP PM (PRF]M2)SymRept 6.41200 OTAY Activity Report Sorted By Issuer July 1,2008 -January 31,2009 CUSIP Investment #Issuer Percent of Portfolio ParValue Beginning Current Transaction Balance Rate Date Purchases or Deposits ParValue"-,,,---_..__..."--"",._- Redemptions or Withdrawals Ending Balance Issuer:STATE OF CALIFORNIA Subtotal and Balance Subtotal and Balance IssuerSubtotal 36.177% Local Agency Investment Fund (LAIF) LAIF 9001 STATE OF CALIFORNIA LAIF COPS07 9009 STATE OF CALIFORNIA 787,892.93 28,423,286.96 29,211,179.89 0.200 44,887,106.30 44,854,587.05 0.370 2,825,547.60 3,650,376.14 2,688.53 2,088.53 1,579,602.22 47,715,342.43 48,507,051.72 2.046 49,464,598.30 33,300,000.00 2.046 30,552.09 0.00 12,228,136.57 49,495,150.39 33,300,000.00 13,807,738.79 97,210,492.82 81,807,051.72 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA Union Bank UNION MONEY 9002 UNION OPERATING 9004 PAYROLL 9005 Issuer:California Bank &Trust Certificates of Deposit-Bank Subtotaland Balance 79,108.00 79,108.00 Issuer Subtotal 0.098%79,108.00 0.00 0.00 79,108.00 Issuer:FANNIE MAE Federal Agency Issues-Callable Subtotal and Balance 2,000,000.00 2,000,000.00 IssuerSubtotal 2.477%2,000,000.00 0.00 0.00 2,000,000.00 Issuer:Federal Farm Credit Bank Federal Agency Issues-Callable Subtotal and Balance 2,000,000.00 2,000,000.00 Run Date:0211712009 -14:28 Portfolio OTAY AP DA (PRF_DA)SymRepl 6.41.200 Report Ver.5.00 OTAY Activity Report Page 2 July 1,2008 -January 31,2009 ParValue ParValue ,~,-,,~.,.-,-- Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment#Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 2.477%2,000,000.00 0.00 0.00 2,000,000.00 Issuer:Federal Home Loan Bank Federal Agency Issues-Callable 3133XLTL7 2037 Federal Home Loan Bank 5.550 07/30/2008 0.00 3,000,000.00 3133XMX71 2042 Federal Home Loan Bank 4.500 08/14/2008 0.00 2,000,000.00 3133XN6X2 2045 Federal Home Loan Bank 4.500 08/20/2008 0.00 2,000,000.00 3133XNP52 2057 Federal Home Loan Bank 4.375 09/17/2008 0.00 2,000,000.00 3133XNS42 2058 Federal Home Loan Bank 4.250 12/18/2008 0.00 2,000,000.00 3133XNPR4 2059 Federal Home Loan Bank 4.350 12124/2008 0.00 1,800,000.00 3133XPDR2 2062 Federal Home Loan Bank 3.060 01/29/2009 0.00 2,000,000.00 3133XPDSO 2063 Federal Home Loan Bank 3.250 01/30/2009 0.00 2,000,000.00 3133XPZN7 2068 Federal Home Loan Bank 3.350 09/03/2008 0.00 1,905,000.00 3133XQC91 2070 Federal Home Loan Bank 3.125 12/17/2008 0.00 2,000,000.00 3133XRK74 2084 Federal Home Loan Bank 3.500 12/30/2008 0.00 2,000,000.00 3133XS6Q6 2086 Federal Home Loan Bank 3.500 10101/2008 2,000,000.00 0.00 3133XSDGO 2087 Federal Home Loan Bank 3.650 1010212008 2,000,000.00 0.00 3133XSDGO 2087 Federal Home Loan Bank 01/0212009 0.00 2,000,000.00 3133XSCCO 2088 Federal Home Loan Bank 4.000 10/14/2008 2,000,000.00 0.00 3133XSFC7 2089 Federal Home Loan Bank 3.400 1010212008 2,000,000.00 0.00 Subtotaland Balance 36,705,000.00 8,000,000.00 24,705,000.00 20,000,000.00 IssuerSubtotal 24.769%36,705,000.00 8,000,000.00 24,705,000.00 20,000,000.00 Issuer:Federal Home Loan Mortgage Federal Agency Issues-Callable 3128X7YG3 2082 Federal Home Loan Mortgage 4.750 12/26/2008 0.00 2,000,000.00 Subtotaland Balance 4,000,000.00 0.00 2,000,000.00 2,000,000.00 IssuerSubtotal 2.477%4,000,000.00 0.00 2,000,000.00 2,000,000.00 Issuer:Federal National Mortage Assoc Federal Agency Issues-Callable 31398AKSO 2060 Federal National Mortage Assoc 4.500 01/07/2009 0.00 2,000,000.00 3136F9TS2 2081 Federal National Mortage Assoc 3.500 09/25/2008 0.00 2,000,000.00 3136F9WV1 2085 Federal National Mortage Assoc 4.000 07102/2008 2,000,000.00 0.00 Portfolio OTAY AP Run Date:0211712009 -14:28 DA(PRF_DA)SymRept 6.41.200 Report Ver.5.00 OTAY Activity Report Page 3 July 1,2008 -January 31,2009 Par Value ,................---,.._......Par Value.---.-.._-.-..-_.............-,..,-,,, Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment #Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Subtotal and Balance 14,000,000.00 2,000,000.00 4,000,000.00 12,000,000.00 Issuer Subtotal 14.862%14,000,000.00 2,000,000.00 4,000,000.00 12,000,000.00 Issuer:General Electric Capital Corporate Notes Subtotal and Balance 2,000,000.00 2,000,000.00 IssuerSubtotal 2.477%2,000,000.00 0.00 0.00 2,000,000.00 Issuer:Neighborhood National Bank Certificates ofDeposit -Bank 1002812475 2061 Neighborhood National Bank 4.850 12113/2008 0.00 1,000,000.00 1005581024 2090 Neighborhood National Bank 3.150 12111/2008 1,000,000.00 0.00 Subtotal and Balance 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 Issuer Subtotal 1.238%1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 Issuer:San Diego County San Diego County Pool so COUNTY POOL 9007 San Diego County 2.282 278,130.99 2,000,000.00 Subtotal and Balance 12,177,099.49 278,130.99 2,000,000.00 10,455,230.48 IssuerSubtotal 12.948%12,177,099.49 278,130.99 2,000,000.00 10,455,230.48 Total 100.000%87,768,946.28 108,488,623.81 115,512,051.72 80,745,518.37 Run Dale:0211712009 -14:28 Portfolio OTAY AP DA{PRF_DA)SymRepI6.41.200 ReportVer.5.00 m OTAY GASS 31 Compliance Detail Sorted by Fund -Fund July 1,2008 -January 31,2009 Adjustment inValue Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value ofPrincipal to Principal ofPrincipal Adjustment Market Value Invested Value Fund:Treasury Fund LAIF 9001 99 FairValue 10,787,944.73 0.00 264,598.30 264,598.30 0.00 81,757.77 27,034,300.80 UNION MONEY 9002 99 Amortized 10,016.93 0.00 242.55 242.55 0.00 0.00 42,536.18 PETIYCASH 9003 99 Amortized 2,800.00 0.00 0.00 0.00 0.00 0.00 2,800.00 UNION OPERATING 9004 99 Amortized 1,542,408.03 0.00 10,946.16 835,774.70 0.00 0.00 717,579.49 PAYROLL 9005 99 Amortized 24,377.26 0.00 0.00 0.00 0.00 0.00 24,977.26 SO COUNTY POOL 9007 99 Fair Value 12,219,100.73 0.00 278,130.99 2,000,000.00 0.00 49,082.04 10,546,313.76 UNION IOC 9008 99 Amortized 0.00 0.00 0.00 0.00 0.00 0.00 0.00 LAIF COPS07 9009 99 Fair Value 1,439,583.11 0.00 30,552.09 0.00 0.00 4,502.01 1,474,637.21 3133XLTL7 2037 99 Fair Value 07/30/2010 3,006,562.50 0.00 0.00 3,000,000.00 0.00 -6,562.50 0.00 3133XMX71 2042 99 Fair Value 08/14/2009 2,004,375.00 0.00 0.00 2,000,000.00 0.00 -4,375.00 0.00 36962G2S2 2044 99 Fair Value 12101/2010 2,051.704.10 0.00 0.00 0.00 0.00 -14,264.10 2,037,440.00 3133XN6X2 2045 99 Fair Value 08/20/2010 2,004,375.00 0.00 0.00 2,000,000.00 0.00 -4,375.00 0.00 3133XNP52 2057 99 Fair Value 09/17/2010 2,006,250.00 0.00 0.00 2,000,000.00 0.00 -6,250.00 0.00 3133XNS42 2058 99 Fair Value 06/18/2010 2,011,250.00 0.00 0.00 2,000,000.00 0.00 -11,250.00 0.00 3133XNPR4 2059 99 FairValue 12/24/2010 1,810,687.50 0.00 0.00 1,800,000.00 0.00 -10,687.50 0.00 31398AKSO 2060 99 FairValue 01/07/2011 2,012,500.00 0.00 0.00 2,000,000.00 0.00 -12,500.00 0.00 1002812475 2061 99 Amortized 12/13/2008 1,000,000.00 0.00 0.00 1,000,000.00 0.00 0.00 0.00 3133XPDR2 2062 99 FairValue 01/29/2010 2,000,000.00 0.00 0.00 2,000,000.00 0.00 0.00 0.00 3133XPOSO 2063 99 FairValue 07/30/2010 1,997,500.00 0.00 0.00 2,000,000.00 0.00 2,500.00 0.00 31398AMX7 2064 99 FairValue 02119/2010 1,998,125.00 0.00 0.00 0.00 0.00 3,755.00 2,001,880.00 3133XPWL4 2065 99 FairValue 02126/2010 1,996,875.00 0.00 0.00 0.00 0.00 5,625.00 2,002,500.00 205003183 2066 99 Amortized 01/2212010 79,108.00 0.00 0.00 0.00 0.00 0.00 79,108.00 3133XPX90 2067 99 FairValue 03/05/2010 1,997,500.00 0.00 0.00 0.00 0.00 6,260.00 2,003,760.00 3133XPZN7 2068 99 FairValue 09/03/2010 1,905,000.00 0.00 0.00 1,905,000.00 0.00 0,00 0.00 31398ANH1 2069 99 Fair Value 02/25/2011 1,988,125.00 0.00 0.00 0.00 0.00 14,375.00 2,002,500.00 3133XQC91 2070 99 Fair Value 12117/2010 1,985,625.00 0.00 0.00 2,000,000.00 0.00 14,375.00 0.00 3133XQF23 2071 99 Fair Value 03/25/2011 1,983,125.00 0.00 0.00 0.00 0.00 23,135.00 2,006,260.00 3133XQJ78 2072 99 Fair Value 04/14/2011 1,965,625.00 0.00 0.00 0.00 0.00 43,135.00 2,008,760.00 31331YB74 2073 99 Fair Value 04/07/2011 1,979,375.00 0.00 0.00 0.00 0.00 28,125.00 2,007,500.00 3133XQMC3 2074 99 Fair Value 10/14/2010 1,980,000.00 0.00 0.00 0.00 0.00 27,500.00 2,007,500.00 Portfolio OTAY AP Run Date:02117/2009 -14:28 GO (PRF_GO)SymRept6.41.200 ReportVer.5.00 OTAY GASB 31 Compliance Detail Page 2 Sorted by Fund -Fund Adjustmentin Value Investment Maturity Beginning Purchase Addition Redemption Amortization Change in Ending CUSIP Investment#Fund Class Date Invested Value of Principal to Principal ofPrincipal Adjustment MarketValue Invested Value Fund:Treasury Fund 3133XQUX8 2075 99 FairValue 10/29/2010 1,987,500.00 0.00 0.00 0.00 0.00 22,500.00 2,010,000.00 3136F9LP6 2076 99 FairValue 04/28/2010 1,994,375.00 0.00 0.00 0.00 0.00 15,005.00 2,009,380.00 3136F9NB5 2077 99 FairValue 05/12/2010 1,991,875.00 0.00 0.00 0.00 0.00 18,745.00 2,010,620.00 31398ARD6 2078 99 Fair Value 05/19/2011 1,997,500.00 0.00 0.00 0.00 0.00 17,500.00 2,015,000.00 3128X7TT1 2079 99 Fair Value 06/0212011 1,997,510.07 0.00 0.00 0.00 0.00 18,869.93 2,016,380.00 3136F9SA2 2080 99 Fair Value 06/10/2010 2,000,625.00 0.00 0.00 0.00 0.00 15,635.00 2,016,260.00 3136F9TS2 2081 99 Fair Value 06/25/2010 2,003,125.00 0.00 0.00 2,000,000.00 0.00 -3,125.00 0.00 3128X7YG3 2082 99 Fair Value 06/26/2013 2,006,940.00 0.00 0.00 2,000,000.00 0.00 -6,940.00 0.00 3133XRNM8 2083 99 Fair Value 03/30/2010 2,011,250.00 0.00 0.00 0.00 0.00 -2,490.00 2,008,760.00 3133XRK74 2084 99 Fair Value 12130/2009 2,008,125.00 0.00 0.00 2,000,000.00 0.00 -8,125.00 0.00 3136F9WV1 2085 99 Fair Value 07/0212010 0.00 2,000,000.00 0.00 0.00 0.00 24,380.00 2,024,380.00 3133XS6Q6 2086 99 Fair Value 10101/2010 0.00 2,000,000.00 0.00 0.00 0.00 8,120.00 2,008,120.00 3133XSDGO 2087 99 Fair Value 1010212009 0.00 2,000,000.00 0.00 2,000,000.00 0.00 0.00 0.00 3133XSCCO 2088 99 FairValue 10/14/2011 0.00 2,000,000.00 0.00 0.00 0.00 11,260.00 2,011,260.00 3133XSFC7 2089 99 Fair Value 04/02/2009 0.00 2,000,000.00 0.00 0.00 0.00 15,626.00 2,015,626.00 1005581024 2090 99 Amortized 12110/2009 0.00 1,000,000.00 0.00 0.00 0.00 0.00 1,000,000.00 Subtotal 87,788,742.96 11,000,000.00 584,470.09 34,805,615.55 0.00 380,823.65 81,146,138.70 Total 87,788,742.96 11,000,000.00 584,470.09 34,805,615.55 0.00 380,823.65 81,146,138.70 Portfolio OTAY AP Run Date:02/17/2009 -14:28 ..•._~..~.~...~..~~~~-~~~~~-----------~---- GD(PRF_GD)SymRept6.41.200 ReportVer.5.00 OTAY Duration Report Sorted by Investment Type -Investment Type Through 0113112009 Investment Book Par Market Current YTM Current Maturity/Effective Security10 Investment #Fund Issuer Class Value Value Value Rate 365 Yield Call Date Duration 36962G2S2 2044 99 General Electric Capital Fair 2,020,336.44 2,000,000.00 2,037,440.00 5.000 2.000 3.935 12/01/2010 1.728 3133XPX90 2067 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,003,760.00 3.020 3.020 2.639c 03/05/2009 0.087 3128X7TT1 2079 99 Federal Home Loan Mortgage Fair 2,000,000.00 2,000,000.00 2,016,380.00 3.625 3.625 1.971c 06/0212009 0.331 3133XPWL4 2065 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,002,500.00 3.000 3.000 2.747c 02126/2009 0.068 3133XQJ78 2072 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,008,760.00 3.150 3.150 2.264c 04/14/2009 0.197 3133XQF23 2071 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,006,260.00 3.250 3.250 2.616c 03/25/2009 0.142 31398AMX7 2064 99 FANNIE MAE Fair 2,000,000.00 2,000,000.00 2,001,880.00 3.000 3.000 2.809c 02119/2009 0.049 31331YB74 2073 99 Federal Farm Credit Bank Fair 2,000,000.00 2,000,000.00 2,007,500.00 3.180 3.180 2.421 c 04/07/2009 0.178 3133XQUX8 2075 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,010,000.00 3.100 3.100 2.090c 04/29/2009 0.238 3133XQMC3 2074 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,007,500.00 2.900 2.900 2.142c 04/14/2009 0.197 3133XSCCO 2088 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,011,260.00 4.000 4.000 2.858c 04/14/2009 0.197 3133XS6Q6 2086 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,008,120.00 3.500 3.500 2.677c 04/01/2009 0.161 31398ANH1 2069 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 2,002,500.00 3.250 3.250 2.996c 02125/2009 0.065 31398ARD6 2078 99 Federal National Mortage Assoc Fair 1,999,294.67 2,000,000.00 2,015,000.00 3.600 3.619 2.084c 05/19/2009 0.293 3136F9SA2 2080 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 2,016,260.00 3.265 3.265 1.626c 06/10/2009 0.353 3136F9WV1 2085 99 Federal National Mortage Assoc Fair 2,000,000.00 2,000,000.00 2,024,380.00 4.000 4.000 1.543c 07/02/2009 0.413 3133XRNM8 2083 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,008,760.00 3.650 3.648 2.762c 03/30/2009 0.000 3136F9LP6 2076 99 Federal National MortageAssoc Fair 1,999,441.25 2,000,000.00 2,009,380.00 3.000 3.031 2.052c 04/28/2009 0.235 3136F9NB5 2077 99 Federal National MortageAssoc Fair 2,000,000.00 2,000,000.00 2,010,620.00 3.100 3.100 2.027c 05/1212009 0.273 3133XSFC7 2089 99 Federal Home Loan Bank Fair 2,000,000.00 2,000,000.00 2,015,626.00 3.400 3.400 1.823 04/0212009 0.164 1005581024 2090 99 Neighborhood National Bank Amort 1,000,000.00 1,000,000.00 1,000,000.00 3.150 3.194 3.150 12110/2009 0.842t 205003183 2066 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 3.180 3.224 3.180 01/22/2010 0.956 t LAIF COPS07 9009 99 STATE OF CALIFORNIA Fair 1,470,206.87 1,470,206.87 1,474,637.21 2.046 2.046 2.046 0.000 LAIF 9001 99 STATE OF CALIFORNIA Fair 26,953,080.09 26,953,080.09 27,034,300.80 2.046 2.046 2.046 0.000 Run Date:0211712009 -14:28 Page 1 Portfolio OTAY AP DU (PRF_DU)SymRept 6.41.200 Report Ver.5.00 OTAY Duration Report Sorted by Investment Type -Investment Type Through 01/31/2009 Security ID Investment#Fund Issuer Investment Class Book Value Par Value Market Current Value Rate YTM Current 365 Yield Maturityl Effective Call Date Duration SDCOUNTY 9007 99 San Diego County Fair Report Total 10,455,230.48 79,976,697.80 10,455,230.48 79,957,625.44 10,546,313.76 80,358,245.77 2.282 2.282 2.282 2.271 0.000 0.146t t =Duration can not be calculated on these investments due to incomplete Marketprice data. Run Date:0211712009 -14:28 Page 2 Portfolio OTAY AP DU (PRF_DU)SymRepI6.41.200 Report Ver.5.00 AGENDA ITEM 12 STAFF REPORT MEETING DATE: W.O.lG.F.NO: TYPE MEETING: SUBMITTED BY: APPROVED BY: (Chief) Regular Board Sean Prendergast,Financ~ Supervisor,Payroll &AP P Joseph Beachem,Chief Financial Officer March 4,2009 DIV.NO. APPROVED BY:German Alvarez,Assistant General Manager (Ass!.GM): SUBJECT: PURPOSE: Accounts Payable Demand List ( ! Attached is the list of demands for the Board's information. FISCAL IMPACT: SUMMARY CHECKS (2016170-2016699) WIRE TO: CITY TREASURER -RECLAIMED WATER PURCHASE DELTA HEALTH SYSTEMS -DENTAL &COBRA CLAIMS LANDESBANK -CERTIFICATES OF PARTICIPATION SAN DIEGO COUNTY WATER AUTHORITY -CAP FEES SAN DIEGO COUNTY WATER AUTHORITY -WATER DELIVERIES SPECIAL DIST RISK MGMT AUTH -INS PREMIUM MAR 09 UNION BANK -PAYROLL TAXES UNION BANK -CERTIFICATIONS OF PARTICIPATION TOTAL CASH DISBURSEMENTS RECOMMENDED ACTION: That the Board receive the attached list of demands. Jb/Attachment NET DEMANDS $2,213,018.97 $19,772.62 $19,832.37 $2,603.70 $139,252.00 $1,300,922.47 $189,233.25 $295,977.17 $1,055,401.63 $5,236,014.18 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016194 02/04/09 09858 HOMEREALTV USA Ref002392838 02103/09 UB Refund Cst #0000141729 171.59 171.59 2016195 02104/09 09824 ILYANA TRILLO Ref002392800 02/03/09 UB Refund Cst #0000119434 19.97 19.97 2016196 02/04/09 09818 JAMESDIX Ref002392794 02103/09 UB Refund Cst #0000090110 56.53 56.53 2016197 02/04/09 09827 JOHN LITCHFIELD Ref002392803 02/03/09 UB Refund Cst #0000123665 31.33 31.33 2016198 02/04/09 09737 KANE DEVELOPMENT Ref002392792 02/03/09 UB Refund Cst #0000088334 134.77 134.77 2016199 02/04/09 09816 KRALLC Ref002392791 02103/09 UB Refund Cst #0000088086 3,654.82 3,654.82 2016200 02/04/09 09830 LEGACY BUILDING SERVICE INC Ref002392806 02/03/09 UB Refund Cst #0000125639 974.61 974.61 2016201 02/04/09 09851 LINDA RING Ref002392830 02/03/09 UB Refund Cst#0000140935 28.72 28.72 2016202 02/04/09 09860 LONG BEACH MORTGAGE Ref002392840 02/03/09 UB Refund Cst#0000141830 16.95 16.95 2016203 02104/09 09852 MARC CARPENTER AND ASSOCIATES Ref002392832 02/03/09 UB Refund Cst#0000141042 75.00 75.00 2016204 02/04/09 09820 MARK JOHNSON Ref002392796 02/03/09 UB Refund Cst #0000095348 45.51 45.51 2016205 02104/09 09844 MATTHEWCHELLI Ref002392823 02103/09 UB Refund Cst #0000139715 18.38 18.38 2016206 02/04/09 09856 MICHELLE MACAWILI Ref002392836 02/03/09 UB Refund Cst#0000141655 30.49 30.49 2016207 02/04/09 09865 MICHELLE MACAWILI INC Ref002392845 02103/09 UB Refund Cst #0000142375 24.86 24.86 2016208 02/04/09 09837 MORTGAGE CONTRACTING SERVICES Ref002392815 02/03/09 UB Refund Cst #0000131451 42.53 42.53 2016209 02104/09 09821 NEIL BOLDUC Ref002392797 02/03/09 UB Refund Cst #0000095698 36.91 36.91 2016210 02/04/09 09841 NEUMAN AND NEUMAN Ref002392819 02/03/09 UB Refund Cst #0000138891 26.71 26.71 2016211 02/04/09 09606 NNP-SAN MIGUEL RANCH Ref002392783 02/03/09 UB Refund Cst#0000061750 25.20 25.20 2016212 02104/09 09823 NORMA QUINTANA Ref002392799 02/03/09 UB Refund Cst#0000097420 54.27 54.27 2016213 02104/09 09809 OTAY RANCH VII JC LLC Ref002392782 02103/09 UB Refund Cst#0000047519 26.69 26.69 2016214 02104/09 09850 PACIFIC REO PROPERTIES Ref002392829 02/03/09 UB Refund Cst#0000140347 25.05 25.05 2016215 02104/09 09550 PLATINUM CIRCLE REAL ESTATE Ref002392809 02/03/09 UB Refund Cst #0000127725 58.29 58.29 2016216 02/04/09 09769 PLATINUM CIRCLE REAL ESTATE Ref002392822 02/03/09 UBRefund Cst#0000139625 22.85 22.85 2016217 02/04/09 09760 PREMIER NATIONAL REALTV GROUP Ref002392810 02/03/09 UB Refund Cst #0000128023 30.37 30.37 Page 2 of 26 OTAY WATER DISTRICT CHECK REGISTER FORCHECKS 2016170 THROUGH 2016699 RUN DATES 21412009 TO 212512009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016218 02/04/09 09833 PREMIER NATIONAL REALTV GROUP Ref002392811 02/03/09 UB Refund Cst #0000128114 9.10 9.10 2016219 02/04/09 09864 PREMIER NATIONAL REALTY GROUP Ref002392844 02103109 UB Refund Cst #0000142346 41.70 41.70 2016220 02/04/09 05689 ROBERT NOWLIN Ref002392785 02/03/09 UB Refund Cst #0000069741 36.91 36.91 2016221 02104109 09861 RUTH REYES Ref002392841 02103109 UB Refund Cst #0000142019 18.78 18.78 2016222 02/04/09 09828 SAKEENAH EL-AMIN Ref002392804 02/03/09 UB Refund Cst#0000124144 38.72 38.72 2016223 02104/09 09847 SAN DIEGO REALTY INC Ref002392826 02/03109 UB Refund Cst#0000139854 10.56 10.56 2016224 02104/09 09843 SANDRA BASSLER Ref002392821 02/03/09 UB Refund Cst #0000139427 14.38 14.38 2016225 02104109 09862 SANDRA CERVANTES Ref002392842 02103/09 UB Refund Cst #0000142204 30.49 30.49 2016226 02/04/09 09521 SELAM VEISEL Ref002392847 02/03/09 UB Refund Cst #0000011927 27.42 27.42 2016227 02104/09 09854 STEVE FRIESEN Ref002392834 02103109 UB Refund Cst #0000141450 46.51 46.51 2016228 02/04/09 09842 TEAM TOWNSEN Ref002392820 02/03/09 UB Refund Cst #0000139423 45.81 45.81 2016229 02104/09 09845 TEAM TOWNSON INC Ref002392824 02103/09 UB Refund Cst #0000139727 9.98 9.98 2016230 02104/09 09848 TEAM TOWNSON INC Ref002392827 02103109 UB Refund Cst#0000140115 74.60 74.60 2016231 02104109 09846 TEAMWERK REALTY Ref002392825 02103109 UB Refund Cst#0000139803 38.57 38.57 2016232 02104/09 09836 VIOLETA LOPEZ RUIZ Ref002392814 02/03/09 UB Refund Cst#0000128200 16.00 16.00 2016233 02104/09 09853 WACHOVIA Ref002392833 02/03/09 UB Refund Cst #0000141102 109.85 109.85 2016234 02104109 09780 WACHOVIA BANK Ref002392831 02103109 UB Refund Cst#0000140983 69.31 69.31 2016235 02/04/09 09722 WATSON H FRASURE Ref002392781 02/03/09 UB Refund Cst #0000045302 33.48 33.48 2016236 02104/09 09822 XIMA CARRANZA Ref002392798 02103/09 UB Refund Cst #0000097415 40.10 40.10 2016237 02/04109 09863 ZULEMA MALDONADO Ref002392843 02/03/09 UB Refund Cst #0000142322 16.72 16.72 2016238 02104/09 01910 ABCANA INDUSTRIES 836061 01/12109 BULK SODIUM HYPOCHLORITE 906.88 836209 01/15/09 BULK SODIUM HYPOCHLORITE 734.21 836155 01/14/09 BULK SODIUM HYPOCHLORITE 428.05 836062 01112109 BULK SODIUM HYPOCHLORITE 388.87 2,458.01 2016239 02/04/09 08488 ABLEFORCE INC 1570 01/27/09 CONSULTING SERVICES -IS DEPT 3,485.00 1560 01/21/09 CONSULTING SERVICES -IS DEPT 3,230.00 6,715.00 Page 3 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016240 02/04/09 03677 AFFORDABLE DRAIN SERVICE INC 4347 01/14/09 CCTV INSPECTION 902.00 902.00 2016241 02/04/09 07732 AIRGAS SPECIALTY PRODUCTS INC 131111436 01/12/09 BULK AQUA AMMONIA 2,275.56 131111435 01/12/09 BULK AQUA AMMONIA 1,213.73 3,489.29 2016242 02/04/09 01463 ALLIED ELECTRONICS INC 83922AOO 01/15/09 HONEYWELL MICROSWITCHES 1,514.56 1,514.56 2016243 02/04/09 06166 AMERICAN MESSAGING L1109570JB 02/01/09 PAGER SERVICES 363.10 363.10 2016244 02/04/09 00107 AMERICAN WATER WORKS 2000687170 12/05/08 MEMBERSHIP RENEWAL 5,213.00 2000688064 12/08/08 MEMBERSHIPRENEWAL 198.00 2000688180 12108/08 MEMBERSHIPRENEWAL 198.00 2000688325 12/19/08 MEMBERSHIP RENEWAL 82.00 5,691.00 2016245 02/04/09 08967 ANTHEM BLUE CROSS EAP 40741 01/20/09 EMPLOYEE ASSISTANCE PROGRAM SERVICES 377.20 377.20 2016246 02104/09 03357 APEX ADVERTISING INC 350440 01/15/09 SWEATSHIRTS 765.41 765.41 2016247 02/04/09 00501 AT&T 000929 01/12/09 CONFERENCE PHONE SERVICE 247.54 247.54 2016248 02/04/09 05758 AT&T 000930 01/07/09 PHONE SERVICE 32.36 32.36 2016249 02/04/09 00145 BARRETT ENGINEERED PUMPS 064467 01/06/09 JABSCO DRUM PUMP 1,302.70 1,302.70 2016250 02/04/09 03679 BRG CONSULTING INC 08122518 12/31/08 CONSULTANT CONTRACT FOR ENV SVCS 3,564.00 3,564.00 2016251 02/04/09 00906 C & M CRANE RENTAL INC 28151 01/08/09 CRANE RENTAL 684.80 684.80 2016252 02/04/09 06281 CALIF STATE DISBURSEMENTUNIT Ben2392873 02/05/09 PAYROLL DEDUCTION 286.73 286.73 2016253 02104/09 02920 CALIFORNIA COMMERCIAL 81580 01/12/09 ASPHALT 2,287.06 2,287.06 2016254 02/04/09 08328 CALIFORNIA RURAL WATER 000953 01/28/09 TRAINING COURSE REGISTRATION 175.00 175.00 2016255 02/04/09 01004 CALOLYMPICSAFETY 050401 01/12/09 SAFETY EQUIPMENT 2,652.90 2,652.90 2016256 02/04/09 09509 CAROL FLICK 15 01/28/09 WELLNESS PROGRAM 150.00 150.00 2016257 02/04/09 01894 CASS,LARRY A 754709 01/28/09 CERTIFICATION RENEWAL REIMB 90.00 90.00 2016258 02/04/09 09801 CENTERBEAMINC 12730 12/23/08 NETWORKMONITORING SERVICES 19,278.24 12721 12123/08 NETWORKCONSULTING SERVICES 75.00 19,353.24 2016259 02/04/09 03811 CITYOF EL CAJON 000979 02/03/09 REFUNDABLE CASH BOND 1,500.00 000978 02103/09 PERMIT FEES 1,425.00 2,925.00 2016260 02/04/09 08160 COMPLETE OFFICE 11021520 01/14/09 OFFICE SUPPLIES 69.13 69.13 Page 4 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016261 02/04/09 03334 COMPUTER MASTERS 72861 01/15/09 LAPTOP 1,490.02 1,490.02 2016262 02/04/09 03706 CONSUMERS PIPE &SUPPLYCO S1063574004 CREDIT MEMO (3.74) S1083405002 10/31/08 WAREHOUSE SUPPLIES 23.36 19.62 2016263 02/04/09 02612 COUNCIL OF WATER UTILITIES 000961 02102/09 MEETING REGISTRATION 25.00 25.00· 2016264 02/04/09 08387 COUNTY OF SD-LANDFILL MGMNT 200901 01/13/09 MICROTURBINEPOWER GENERATION 397.19 397.19 2016265 02104/09 06415 CUMMINS CALPACIFIC LLC 00467836 01/09/09 REPAIR PARTS 194.31 194.31 2016266 02/04/09 03589 DEPARTMENTOF HEALTH SERVICES 000952 01/29/09 CERTIFICATION APPLICATION 120.00 120.00 2016267 02/04/09 00319 DEPARTMENT OF PUBLIC HEALTH 674809 01/28/09 CERTIFICATION RENEWAL 90.00 90.00 2016268 02/04/09 09870 DOCTORS DEVELOPMENTGROUP LLC 000971 01/28/09 WORK ORDER REFUND D0173-010008 721.49 721.49 2016269 02104/09 09871 EARLKATZER 000969 01/28/09 WORK ORDER REFUND D0620-010276 249.01 249.01 2016270 02/04/09 02447 EDCO DISPOSAL CORPORATION 000965 01/31/09 RECYCLING SERVICES 90.00 90.00 2016271 02104/09 06525 ELECTRIC MOTOR SPECIALISTS INC 2732 01/07/09 20HP MOTOR PARTS &LABOR 1,327.08 2700 12/09/08 SLIDE GATE PARTS 920.00 2,247.08 2016272 02/04/09 08023 EMPLOYEE BENEFIT SPECIALISTS 0044780lN 11/25/08 ADMINISTRATION FEES FOR COBRA 547.50 00452071N 12/19/08 ADMINISTRATION FEES FOR COBRA 547.50 00446921N 10/27/08 ADMINISTRATION FEES FOR COBRA 532.50 00454621N 01/22/09 ADMINISTRATION FEES FOR COBRA 532.50 2,160.00 2016273 02/04/09 06813 EMPLOYMENTTRAINING 000966 02/02/09 PREVENTION TRAINING 70.00 70.00 2016274 02104/09 07596 ENVIRONMENTAL EXPRESS INC 1000172761 01/13/09 SUSPENDED SOLIDS FILTERS 1,068.58 1,068.58 2016275 02/04/09 00645 FEDEX 907183619 01/30/09 OVERNIGHT PICK-UP &DELIVERY MAILSVCS 9.18 9.18 2016276 02/04/09 03546 FERGUSON WATERWORKS 0300206 01/14/09 GASKETS 492.37 492.37 2016277 02/04/09 09867 FIORELLA INVESTMENTS LLC 000970 01/28/09 WORK ORDER REFUND D0444-010018 1,752.64 1,752.64 2016278 02/04/09 09049 FOX CONSTRUCTION 3 10/03/08 P2465/P2466 MATERIALSTORAGE BINS/COVER 74,527.45 74,527.45 2016279 02104/09 02344 FRANCHISE TAX BOARD Ben2392875 02/05/09 PAYROLL DEDUCTION 313.82 313.82 2016280 02/04/09 04548 FRASER'S BOILER SERVICE INC 24086 01/08/09 MACHINE WORK 1,029.02 1,029.02 2016281 02/04/09 03537 GHA TECHNOLOGIES INC 527048 01/09/09 TONER 1,739.09 527567 01/14/09 SOFTWARE 752.10 527052 01/12/09 TONER 381.44 2,872.63 Page 5 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 214/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016282 02/04/09 00101 GRAINGER INC 9813715233 01/09/09 CHARTS 363.66 9815795589 01/12/09 MAINTENANCE SUPPLIES 298.31 9813715241 01/09/09 GASKETS 118.36 9815795597 01112/09 24 HOUR MECHANICAL TIMECLOCKS 107.06 887.39 2016283 02/04/09 03289 GRANGER,WILLIAM E 15710109 01/27/09 TRAVEL EXPENSE REIMBURSEMENT 171.56 171.56 2016284 02/04/09 09873 GROSSMONT-CUYAMACA COMM COLL 000975 01/28/09 WORK ORDER REFUND D0683-090025 1,369.44 1,369.44 2016285 02/04/09 00174 HACH COMPANY 6068636 01/15/09 CIRCUIT BOARD 779.01 779.01 2016286 02/04/09 03639 HARRIS &ASSOCIATES INC 390004 01/08/09 CIP P2009 -36 INCH PIPELINE VALVE ENG.18,520.00 18,520.00 2016287 02104/09 01109 HOME DEPOT CREDITSERVICES 4184086 01/21/09 PAINT ROLLERS 54.86 4184088 01/21/09 SHELF 21.49 76.35 2016288 02/04/09 09868 HTRCE LP 000968 01/28/09 WORK ORDER REFUND D0572-010221 3,326.89 3,326.89 2016289 02/04/09 03380 INSIGHT PUBLIC SECTOR INC 1100067042 01109/09 WIRELESS SERVICE (PARTS)22,774.69 22,774.69 2016290 02/04/09 05840 KIRK PAVING INC 4202 01/13/09 AS NEEDED PAVING SERVICES 10,797.90 10,797.90 2016291 02/04/09 02882 MAYER REPROGRAPHICS INC 00410071N 01/09/09 REPROGRAPHICS SERVICES 496.83 00410881N 01/12/09 REPROGRAPHICS SERVICES 30.98 527.81 2016292 02104/09 03401 MODULAR MERCHANTS 1832 01/15/09 WORK STATIONS 9,957.85 9,957.85 2016293 02/04/09 02037 MWH LABORATORIES 260422L1 01/02/09 REGULATORY ANALYSES 548.00 548.00 2016294 02104/09 03523 NATIONAL DEFERRED COMPENSATION Ben2392857 02105/09 DEFERRED COMPPLAN 11,506.95 11,506.95 2016295 02/04/09 03733 NEC UNIFIED SOLUTIONS INC TMOOOOO02295 01/12/09 LABOR FOR PHONES SVCS 177.00 177.00 2016296 02/04/09 07488 NEWMAN,DAMON C6193008896 01/29/09 SAFETY BOOTS REIMBURSEMENT 107.15 107.15 2016297 02/04/09 00510 OFFICE DEPOTINC 459100204001 01114/09 OFFICE SUPPLIES 99.24 459290505001 01/14/09 OFFICE SUPPLIES 73.58 172.82 2016298 02/04/09 02334 OTAY LANDFILL 007633 01/15/09 WASTE DISPOSAL SERVICES 4,148.61 4,148.61 2016299 02/04/09 03101 OTAYWATER DISTRICT Ben2392859 02/05/09 PAYROLL DEDUCTION -ASSN DUES 812.00 812.00 2016300 02/04/09 07499 PACIFIC BUILDING MAINTENANCE 15987 01/07/09 JANITORIAL SERVICES 2,795.00 2,795.00 2016301 02/04/09 09872 PAUL COEBERGH 000976 01/28/09 WORK ORDER REFUND D0409-000001 1,844.88 1,844.88 2016302 02/04/09 00227 PELL MELL SUPPLY 45666200 01/12/09 PUMP BOLTS 216.38 216.38 Page 6 of 26 -_.- OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES214/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016303 02104/09 00593 PEPPER OIL COMPANY INC 609514 01/16/09 UNLEADED FUEL 9,262.87 9,262.87 2016304 02/04/09 03199 PERFORMANCE SPECIALTIES 24344 12/08/08 SMOG TESTING 45.00 24350 12/10/08 SMOG TESTING 45.00 24398 12/09/08 SMOG TESTING 45.00 24399 12/09/08 SMOG TESTING 45.00 24400 12/09/08 SMOG TESTING 45.00 24412 12/10/08 SMOG TESTING 45.00 24430 12/12/08 SMOG TESTING 45.00 24431 12/12/08 SMOG TESTING 45.00 24434 12/12/08 SMOG TESTING 45.00 24438 12/12/08 SMOG TESTING 45.00 24444 12/15/08 SMOG TESTING 45.00 24445 12/15/08 SMOG TESTING 45.00 24446 12/15/08 SMOG TESTING 45.00 24447 12/15/08 SMOG TESTING 45.00 24448 12/15/08 SMOG TESTING 45.00 24449 12/15/08 SMOG TESTING 45.00 24450 12/15/08 SMOG TESTING 45.00 24456 12/18/08 SMOG TESTING 45.00 810.00 2016305 02/04/09 05499 PRAXAIR DISTRIBUTION INC 31738045 12/20/08 WELDING SUPPLIES &EQUIPMENT 520.72 520.72 2016306 02/04/09 06641 PRUDENTIAL OVERALL SUPPLY 0011757 01/15/09 UNIFORMS 324.28 0011756 01/15/09 MATS,TOWELS &SUPPLIES 128.19 0011758 01/15/09 MATS,TOWELS &SUPPLIES 95.84 0007731 01/14/09 MATS,TOWELS &SUPPLIES 89.00 0011759 01/15/09 UNIFORMS 53.45 0007730 01114/09 UNIFORMS 53.24 744.00 2016307 02/04/09 02166 PULLTARPS MFG 119699 01/06/09 REPLACE PULL TARP 323.83 323.83 2016308 02/04/09 01342 R J SAFETY SUPPLY CO INC 25821701 01/14/09 SAFETY SUPPLIES &APPAREL 224.99 224.99 2016309 02/04/09 08029 RANCHO SAN DIEGO-JAMUL 8212 01/30/09 SPONSORSHIP 150.00 150.00 2016310 02/04/09 06645 RELIABLE ELEVATOR INC 15439 01/01/09 ELEVATOR SERVICE &MAINTENANCE 416.01 416.01 , 2016311 02/04/09 00164 REXEL 800506715 12/16/08 SOFTSTARTCIRCUIT BOARD 639.60 639.60 2016312 02/04/09 04542 ROBAK,MARK 70141108 11/30/08 MILEAGE REIMBURSEMENT 23.99 23.99 2016313 02/04/09 06412 ROMERO,TANYA 000956 01/28/09 TUITION REIMBURSEMENT 139.13 139.13 2016314 02/04/09 03279 ROTH STAFFING COMPANIES LP 12273479 01/30/09 TEMPORARY SERVICES -HR DEPT 789.12 789.12 2016315 02/04/09 00217 RW LITTLE CO INC 91054 01/14/09 POWDER COAT PARTS 275.00 275.00 Page 7 of 26 -"'2-:~,1~~ OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 214/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016316 02/04/09 00758 SAN DIEGO BUSINESS JOURNAL 00124614 01/20109 SUBSCRIPTION RENEWAL 79.00 79.00 2016317 02/04/09 00121 SAN DIEGO GAS &ELECTRIC 000955 01/26/09 UTILITY EXPENSES 74,396.68 000960 01/28/09 UTILITY EXPENSES 1,270.32 75,667.00 2016318 02/04/09 03809 SAN DIEGO NEIGHBORHOOD NEWS 01530909001 01/09/09 JOB POSTING 143.60 143.60 2016319 02104/09 09345 SANTOS,CESAR 39017 01/24/09 SAFETY BOOTS REIMBURSEMENT 145.44 145.44 2016320 02/04/09 00419 SHAPE PRODUCTS 138439 01/12/09 LABORATORY SUPPLIES 712.35 712.35 2016321 02104/09 09874 SKANSKA USA CIVIL WEST CALIF 000974 01/28/09 WORKORDER REFUND D0566-090032 2,726.25 2,726.25 2016322 02/04/09 03592 SOFTCHOICE CORPORATION 1932688 01/09/09 WORKSTATION EQUIPMENT 1,948.43 1,948.43 2016323 02/04/09 03103 SOUTHCOAST HEATING &C39279 01/13/09 AIR CONDITIONING MAINTENANCE 908.00 908.00 2016324 02/04/09 02354 STANDARD ELECTRONICS 12028 01/15/09 SECURITY SERVICE &REPAIRS 438.78 438.78 2016325 02104/09 06299 STATE DISBURSEMENT UNIT Ben2392863 02105/09 PAYROLL DEDUCTION 237.69 237.69 2016326 02/04/09 06303 STATE DISBURSEMENT UNIT Ben2392867 02/05/09 PAYROLL DEDUCTION 836.30 836.30 2016327 02/04/09 08533 STATE DISBURSEMENT UNIT Ben2392865 02/05/09 PAYROLL DEDUCTION 841.01 841.01 2016328 02/04/09 09572 STATE OF CALIFORNIA EDD Ben2392869 02/05/09 PAYROLL DEDUCTION 350.71 350.71 2016329 02/04/09 02261 STATE STREET BANK &TRUST CO Ben2392855 02/05/09 DEFERRED COMP PLAN 5,922.54 5,922.54 2016330 02104/09 02799 TARULLI TIRE INC -SAN DIEGO 20036647 12131/08 TIRE SERVICE 64.00 64.00 2016331 02/04/09 02376 TECHKNOWSION INC 2113 12/22/08 SCADAAPPLICATION MAINT SUPPORT 11,388.86 111,388.86 2016332 02/04/09 00075 UNION TRIBUNE PUBLISHING CO 0010180622 01/15/09 AD FOR CONSULTING SERVICES 233.60 233.60 2016333 02/04/09 08262 UNITED RENTALS NORTHWESTINC 79071533001 01/14/09 CONCRETE 159.47 159.47 2016334 02/04/09 05417 UNITED STATES DEPARTMENT Ben2392871 02/05/09 PAYROLL DEDUCTION 100.00 100.00 2016335 02/04/09 09875 URBAN WEST STRATEGIES 000972 01/28/09 WORK ORDER REFUND D0525-010162 2,085.15 000973 01/28/09 WORK ORDER REFUND D0525-010160 318.52 2,403.67 2016336 02/04/09 07674 US BANK CORPORATE PAYMENT 000962 01/22/09 DISTRICT EXPENSES 267.55 000963 01/22/09 DISTRICT EXPENSES 19.12 286.67 2016337 02/04/09 04345 US CONCRETE PRECAST GROUP 01346951N 01/14/09 INVENTORY 7,071.93 7,071.93 Page 8 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total DEH090222D11 01/20/09 RECLAIMED WATER SHUT DOWN 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1,785.74 0059427 01/17/09 ON-CALL ENVIRONMENTAL SVCS 1,690.00 13,653.94 2016378 02/11/09 04996 KNOX ATTORNEY SERVICE INC 451110 01/21/09 DELIVERYOF BOARD &COMMITTEE PACKETS 28.60 451109 01/21/09 DELIVERYOF BOARD &COMMITTEE PACKETS 28.60 451108 01/21/09 DELIVERYOF BOARD &COMMITTEE PACKETS 28.60 451107 01/21/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 451113 01/21/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 Page100f 26 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 451114 01/21109 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 451115 01/21/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 451116 01/21/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 228.80 2016379 02/11/09 01859 LA PRENSA SAN DIEGO 22594 01/16/09 JOB POSTING 44.46 44.46 2016380 02/11/09 09880 LEIGH,ROB 000985 02/07/09 SAFETY BOOTS REIMBURSEMENT 135.74 135.74 2016381 02111/09 05329 MASTERMETER INC 01500121N 01/19/09 6"METER FOR REPLACEMENT 2,677.78 2,677.78 2016382 02/11109 01183 MCMASTER-CARR SUPPLY CO 20062095 01/22/09 REPLACEMENT GAUGES 698.65 698.65 2016383 02111/09 06648 MEASUREMENT CONTROL 144303 01/16/09 LARGE METERTESTING 850.54 850.54 2016384 02/11/09 03745 MEDEROS,CHARLES 000987 02/09/09 TUITION REIMBURSEMENT 2,625.60 2,625.60 2016385 02/11/09 03393 MOBILE MINI LLC -CA 904187035 01/18/09 RENTAL 40'METER STORAGE CONTAINERS 173.28 173.28 2016386 02/11/09 03605 NATIONAL FIRE PROTECTION ASSOC 4482084Y 01/21/09 BOOKS 148.56 148.56 2016387 02/11/09 00510 OFFICE DEPOT INC 460391974001 01/21/09 OFFICE SUPPLIES 1,295.30 1,295.30 2016388 02/11/09 03780 OWEN,DOUGLAS WESTLEY 000986 02/06/09 TUITION REIMBURSEMENT 801.06 801.06 2016389 02111/09 08891 PACIFIC METERSERVICES INC 115 01/19/09 WATER METER REPLACEMENT FY 2009 45,035.81 45,035.81 2016390 02/11/09 05499 PRAXAIR DISTRIBUTION INC 32010700 01/20/09 WELDING SUPPLIES &EQUIPMENT 556.63 556.63 2016391 02/11/09 06844 PROCESS MEASUREMENT 066324 01/22/09 FUEL TANK LEVEL TRANSMITTER 645.72 645.72 2016392 02/11/09 06641 PRUDENTIAL OVERALL SUPPLY 0031588 01/22/09 UNIFORMS 298.46 0031587 01/22109 MATS,TOWELS &SUPPLIES 128.19 0031589 01/22109 MATS,TOWELS &SUPPLIES 95.84 0027575 01/21/09 MATS,TOWELS &SUPPLIES 89.00 0031590 01/22/09 UNIFORMS 53.45 0027574 01/21/09 UNIFORMS 53.24 718.18 2016393 02/11/09 00078 PUBLIC EMPLOYEES RETIREMENT Ben2392853 02/05/09 PERS CONTRIBUTION 125,683.16 125,683.16 , 2016394 02/11/09 01342 R J SAFETY SUPPLY CO INC 25821702 01/21/09 SAFETY SUPPLIES &APPAREL 412.15 412.15 2016395 02/11/09 00766 RANROY PRINTING COMPANY 096359 01/16/09 WATER SHUTOFF POSTCARDS 637.88 096514 02/05/09 BUSINESS CARDS 48.49 686.37 2016396 02111/09 02041 RBF CONSULTING 8120634 01/20/09 CIP P2009 -36 INCH PIPELINE 14,280.00 14,280.00 2016397 02111/09 00021 RCP BLOCK&BRICK INC 4332884 01/20/09 CONCRETE 208.17 208.17 Page 11 of 26 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 214/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016417 02/11/09 00125 WESTERN PUMP INC 00734051N 01/19/09 FUEL ISLAND REPAIRS 106.25 106.25 2016418 02/11/09 02725 WILLIAMS SCOTSMAN INC 87907923 01/18/09 MOBILE OFFICE RENTAL 299.35 299.35 2016419 02/18/09 01910 ABCANA INDUSTRIES 836630 01/28/09 BULK SODIUM HYPOCHLORITE 1,374.11 836551 01/26/09 BULK SODIUM HYPOCHLORITE 969.28 836691 01/29/09 BULK SODIUM HYPOCHLORITE 470.13 836550 01/26/09 BULK SODIUM HYPOCHLORITE 470.13 836631 01/28109 BULK SODIUM HYPOCHLORITE 384.52 836603 01/28/09 UTILITYSUBMERSABLE PUMP 182.67 3,850.84 2016420 02118/09 08488 ABLEFORCE INC Temp 1210 02110109 CONSULTING SERVICES -IS DEPT 4,080.00 4,080.00 2016421 02/18/09 02362 ALLIED WASTE SERVICES #509 0509003443170 01/25/09 TRASH REMOVAL SERVICES 767.95 0509003444553 01/25/09 ASBESTOS DISPOSAL CONTAINER RENTAL 192.12 0509003445364 01/25/09 TRASH REMOVAL SERVICES 120.87 1,080.94 2016422 02118/09 08026 ARB INC LF20009 01/06/09 R2081 -20 INCH LANE AVENUE CONVERSION 56,268.18 56,268.18 2016423 02/18/09 05758 AT&T 001004 02/18/09 PHONE SERVICE 32.36 32.36 2016424 02/18/09 07785 AT&T 000000439487 02/18/09 PHONESERVICES 5,749.89 5,749.89 2016425 02/18/09 00223 C W MCGRATH INC 32115 01/29/09 CRUSHED ROCK 52.42 52.42 2016426 02/18/09 06281 CALIF STATE DISBURSEMENTUNIT Ben2393167 02/19/09 PAYROLL DEDUCTION 286.73 286.73 2016427 02/18/09 00693 CALIFORNIA SPECIAL DISTRICTS 001011 02113/09 QUARTERLY MEETING 222.00 222.00 2016428 02/18/09 00192 CALIFORNIA WATER ENVIRONMENT 000967 01/29/09 CONFERENCE REGISTRATION 525.00 525.00 2016429 02/18/09 09458 CAMILLE BRUNO RF004001232 02/09/09 CUSTOMER REFUND 16.78 16.78 2016430 02/18109 03811 CITY OF EL CAJON 000998 02/12/09 PERMITS,REVIEWS &TRAFFIC CTRL FEES 1,760.00 1,760.00 2016431 02/18/09 08160 COMPLETE OFFICE 11051450 01/28/09 OFFICE SUPPLIES 667.83 667.83 2016432 02/18/09 03334 COMPUTER MASTERS 72945 01/26/09 LAPTOP 25.86 25.86 2016433 02/18/09 02612 COUNCIL OF WATER UTILITIES 001010 02/13109 MONTHLY MEETING 75.00 75.00 2016434 02/18109 07355 COVINGTON,ERNEST G.000995 02/08/09 SAFETY BOOTS REIMBURSEMENT 144.42 144.42 2016435 02118/09 07680 DELTA HEALTH SYSTEMS P090209 02117109 EMPLOYEE HEALTH ADMIN SVCS 1,360.00 1,360.00 2016436 02118/09 00550 DIETERICH-POST COMPANY 684521 01/29/09 PLonER PAPER 1,683.12 1,683.12 Page 13of 26 OTAYWATER DISTRICT CHECK REGISTER FORCHECKS2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2/25/2009 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016437 02/18/09 00230 EDP PRODUCTS INC 805882 01/26/09 CARTRIDGE STORAGE/RETRIEVAL 219.60 219.60 2016438 02/18109 06525 ELECTRIC MOTOR SPECIALISTS INC 2774 01/27/09 SLURRYPUMP REBUILD 2,278.06 2,278.06 2016439 02118/09 03546 FERGUSON WATERWORKS 0301530 01/27/09 18"TAP CAP 1,872.99 0301170 01/26/09 SHUT-OFF TOOL 762.88 0301616 01/26/09 SHUT-OFF TOOL 449.09 0301409 01/27/09 INVENTORY 420.23 0302063 01/29/09 GASKETS 381.95 3,887.14 2016440 02118/09 02344 FRANCHISE TAX BOARD Ben2393169 02/19/09 PAYROLL DEDUCTION 313.82 313.82 2016441 02/18/09 06291 GARCIA CALDERON &RUIZ LLP 2230 02/05/09 LEGAL SERVICES DECEMBER 2008 42,057.67 42,057.67 2016442 02/18/09 00101 GRAINGER INC 9827895690 01/28/09 WAREHOUSE SUPPLIES 997.04 9826717580 01/27109 ELECTRICAL MATERIAL 143.52 1,140.56 2016443 02/18/09 00174 HACH COMPANY 6088472 01/29/09 CIRCUIT BOARD 719.01 6087076 01/28109 TURBIDIMETER 2100N REPAIR 257.79 976.80 2016444 02/18/09 00169 HAWTHORNE POWER SYSTEMS PS100165510 01/28/09 ENGINE COOLANT 2,444.16 PS100165511 01/28/09 REPAIR PART 323.51 2,767.67 2016445 02/18/09 06640 HD SUPPLYWATERWORKS LTO 8480985 01/26/09 INVENTORY 2,074.19 8480764 01/26/09 INVENTORY 705.76 2,779.95 2016446 02/18/09 06843 HI-TECH AIR CONDITIONING 5450 01/27/09 ACREPAIR 2,915.00 2,915.00 2016447 02/18/09 06540 HORIZON CRANE SERVICE LLC 4938 01/27/09 CRANE RENTAL 580.00 580.00 2016448 02/18/09 07725 IMPRINT SOLUTIONS 1598 01/23/09 WATER CONSERVATION SHIRTS 75.38 75.38 2016449 02/18/09 09341 INNER-TITE CORPORATION 83076 01/28/09 PADLOCK METERSEALS 89.21 89.21 2016450 02/18/09 03380 INSIGHTPUBLIC SECTOR INC 1100070397 01/29/09 WIRELESS MESH PARTS 19,068.60 1100069287 01/23109 WIRELESS MESH PARTS 308.90 19,377.50 2016451 02/18/09 03250 INTERNATIONAL PUBLIC 000964 01/29/09 REGISTRATION FEES 20.00 20.00 I 2016452 02/18/09 05840 KIRK PAVING INC 4207 01/28/09 AS NEEDED PAVING SERVICES 15,130.25 15,130.25 2016453 02/18/09 04996 KNOX ATTORNEY SERVICE INC 452434 01/27/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 452435 01/27/09 DELIVERY OF BOARD &COMMITTEE PACKETS 28.60 57.20 2016454 02/18/09 00628 MANHATTAN NAT'L LIFE INS CO 001007 02118/09 VOLUNTARYLIFE INSURANCE 327.46 327.46 2016455 02118/09 01183 MCMASTER-CARR SUPPLY CO 19812584 01/20109 SHOP EQUIPMENT 344.04 344.04 Page 14 of 26 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 21412009 TO 212512009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016456 02/18/09 03393 MOBILE MINI LLC -CA 904189159 01/26/09 RENTAL 40'METER STORAGE CONTAINERS 179.27 179.27 2016457 02/18/09 03523 NATIONAL DEFERRED COMPENSATION Ben2393155 02119/09 DEFERRED COMP PLAN 11,044.64 11,044.64 2016458 02/18/09 09884 NATIONAL SAFETY COMPLIANCE INC 42199 01/31/09 HEALTH EXAMS 495.00 495.00 2016459 02/18/09 08531 NEWEST CONSTRUCTION 12/08108 450-1 RESV DISINFECTION FACILITY 89,264.25 89,264.25 2016460 02/18/09 02848 NEWMAN,E PATRICK 001009 02117/09 TUITION REIMBURSEMENT 222.41 222.41 2016461 02/18/09 03571 NEXTLEVELINTERNETINC 17847 02/14/09 INTERNET WEB HOSTING 416.00 416.00 2016462 02118/09 00510 OFFICE DEPOT INC 461817908001 01/28/09 OFFICE SUPPLIES 240.47 461909371001 01/28/09 OFFICE SUPPLIES 29.07 269.54 2016463 02/18/09 03149 ON SITE LASER 42388 01/28/09 PRINTER SERVICE 411.69 411.69 2016464 02118/09 03101 OTAYWATERDISTRICT Ben2393147 02/19/09 PAYROLL DEDUCTION -ASSN DUES 819.00 819.00 2016465 02/18/09 03308 PBS&J 1032651 01/27/09 CIP P2089-RECYCLED WATER CONCEPT STUD"12,023.26 12,023.26 2016466 02/18/09 00137 PETTY CASH CUSTODIAN 001005 02/17/09 PETTY CASH REIMBURSEMENT 902.01 902.01 2016467 02/18109 07602 PLUMBERS DEPOT PD10552 01/26/09 6"&8"CURVED BLADES AND CHUCK 229.81 PD10571 01/29/09 FILTER SCREENS 96.52 326.33 2016468 02/18/09 01715 PORRAS,PEDRO J 000900 12/23108 CONFERENCE EXPENSES 652.80 652.80 2016469 02/18/09 02976 PRE-PAID LEGAL SERVICES INC 001008 02/18109 LEGAL SERVICES 15.95 15.95 2016470 02118/09 06641 PRUDENTIAL OVERALL SUPPLY 0051414 01/29/09 UNIFORMS 311.90 0051413 01/29/09 MATS,TOWELS &SUPPLIES 134.72 0051415 01/29/09 MATS,TOWELS &SUPPLIES 100.80 0047395 01/28/09 MATS,TOWELS &SUPPLIES 93.54 0051416 01/29/09 UNIFORMS 55.91 0047394 01/28109 UNIFORMS 55.49 752.36 2016471 02/18/09 09804 PUBLICIA PRESS LTO 20092018 01/28/09 BUSINESS CARD SHELLS 474.10 474.10 2016472 02/18/09 08331 RABO BANKNA 280208R 01/28/09 RETENTION FOR SPIESS CONSTRUCTION 12,652.25 12,652.25 2016473 02/18/09 00766 RANROY PRINTING COMPANY 096398 01/23/09 BUSINESS CARDS 151.93 151.93 2016474 02/18/09 03687 SAFETY-KLEEN SYSTEMS INC M005365450 01/26/09 WASTE COOLANT PICK UP 100.50 100.50 2016475 02/18/09 00121 SAN DIEGO GAS &ELECTRIC 000984 02/04/09 UTILITYEXPENSES 2,527.25 000997 02/04/09 UTILITYEXPENSE 9.56 2,536.81 Page 15 of 26 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016476 02118/09 07405 SHARP BUSINESS SYSTEMS 9MM34A 01/28/09 FAX MACHINE DRUM 77.58 77.58 2016477 02/18/09 01651 SHARP REES-STEALY MEDICAL CTRS 208 01/17109 HEALTH EXAMS 173.00 173.00 2016478 02118/09 00258 SLOAN ELECTRIC CO 0055156 01/28/09 MACHINE STUFFING BOX 687.37 687.37 2016479 02/18/09 01669 SOUTHLAND ENVELOPE CO INC 058569 01/29/09 CUSTOMER SERVICE RETURN ENVELOPES 126.53 126.53 2016480 02/18/09 03760 SPANKY'S PORTABLE SERVICES INC 798013 01/28/09 PORTABLE TOILET RENTAL 79.96 79.96 2016481 02/18/09 03184 SPIESS CONSTRUCTION CO INC 280208 01/28/09 P2191 -850-4 RESERVOIR (CONSTRUCTION)113,870.25 113,870.25 2016482 02118/09 05494 SPRINT 901500243029 02/12/09 GIS (AIR-TRAK)CELLULAR SERVICE 3,539.15 3,539.15 2016483 02/18/09 06299 STATE DISBURSEMENT UNIT Ben2393159 02/19/09 PAYROLL DEDUCTION 237.69 237.69 2016484 02/18/09 06303 STATE DISBURSEMENT UNIT Ben2393163 02/19/09 PAYROLL DEDUCTION 836.30 836.30 2016485 02118/09 08533 STATE DISBURSEMENT UNIT Ben2393161 02/19/09 PAYROLL DEDUCTION 841.01 841.01 2016486 02/18/09 02261 STATE STREET BANK &TRUST CO Ben2393153 02/19/09 DEFERRED COMP PLAN 5,797.54 5,797.54 2016487 02/18/09 04977 T-MOBILE 415086045209 02/01/09 CELL PHONE &BLACKBERRYSERVICES 1,302.58 1,302.58 2016488 02118/09 08262 UNITED RENTALS NORTHWEST INC 79239700001 01/23/09 CONCRETE 177.79 177.79 2016489 02/18/09 05417 UNITED STATES DEPARTMENT Ben2393165 02/19/09 PAYROLL DEDUCTION 100.00 100.00 2016490 02118/09 00350 UNITED STATES POSTAL SERVICE 104339510209 02/12/09 REIMBURSE POSTAGE MACHINE 1,650.00 1,650.00 2016491 02/18/09 07662 UNITEDHEALTHCARE SPECIALTY 001006 02/18/09 BASIC L1FE/AD&D &SUPP LIFE INS 5,236.75 5,236.75 2016492 02/18/09 03212 UNUM LIFE INSURANCE Ben2393145 02/19/09 LONG TERM DISABILITY 6,622.83 I 6,622.83 2016493 02/18/09 07674 US BANK CORPORATE PAYMENT 001003 01/22/09 DISTRICT EXPENSES 5,070.24 5,070.24 2016494 02/18/09 06829 US SECURITY ASSOCIATES INC 425960 01/22/09 AFTER HOURS SECURITY SVCS 461.20 461.20 2016495 02/18/09 01095 VANTAGEPOINT TRANSFER AGENTS Ben2393157 02/19/09 DEFERRED COMP PLAN 7,421.66 7,421.66 2016496 02/18/09 06414 VANTAGEPOINTTRANSFER AGENTS Ben2393149 02119/09 401A PLAN 11,870.45 11,870.45 2016497 02/18/09 01265 WATEREUSE ASSOCIATION 000993 02/12/09 MEMBERSHIP APPLICATION FEE 5,078.58 5,078.58 2016498 02/18/09 00014 WAXIE SANITARY SUPPLY 71091081 01/29/09 JANITORIAL SUPPLIES 1,105.11 1,105.11 2016499 02/18/09 03151 ZHAO,MING 15380308 02/18/09 TRAVEL EXPENSE REIMBURSEMENT 33.63 33.63 Page 16 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/412009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016500 02125/09 09896 ALEJANDRO J CROSTHWAITE Ref002393324 02124/09 UB Refund Cst#0000144396 140.07 140.07 2016501 02/25/09 09946 ALiSHA HINES Ref002393377 02/24/09 UB Refund Cst#0000127422 86.07 86.07 2016502 02/25109 09983 AMERICAN EAGLE REAL ESTATE Ref002393415 02/24109 UB Refund Cst#0000142700 67.49 67.49 2016503 02125/09 09960 AMERICAN EAGLE REALTY ESTATE Ref002393391 02/24/09 UB Refund Cst#0000140590 67.81 67.81 2016504 02/25/09 09919 ANA ROSA SANZ Ref002393350 02/24/09 UB Refund Cst#0000091535 16.45 16.45 2016505 02125/09 09898 ANDREW JONES Ref002393327 02124/09 UB Refund Cst #0000023174 95.54 95.54 2016506 02/25/09 09965 ANTHONY SOLFRIZO Ref002393396 02/24/09 UB Refund Cst#0000141248 20.59 20.59 2016507 02/25/09 09980 AXIA REAL ESTATE GROUP INC Ref002393412 02/24109 UB Refund Cst #0000142577 60.41 60.41 2016508 02/25/09 09970 BARBARA DOWNING Ref002393401 02124109 UB Refund Cst #0000141508 50.89 50.89 2016509 02/25/09 09954 BERNIE SCHMUTZLER Ref002393385 02/24/09 UB Refund Cst #0000139954 22.81 22.81 2016510 02125/09 09915 BOYD BROOKS Ref002393346 02/24/09 UB Refund Cst #0000088278 43.01 43.01 2016511 02/25/09 09978 BROKEN ARROW COMMUNICATIONS Ref002393409 02/24/09 UB Refund Cst#0000142251 722.12 722.12 2016512 02125/09 09901 CAMBRIDGE RESTAURANT PROP Ref002393330 02124/09 UB Refund Cst#0000037748 144.93 144.93 2016513 02/25109 09925 CANOl SAKAMOTO Ref002393356 02/24/09 UB Refund Cst#0000094319 47.81 47.81 2016514 02125/09 09914 CARLOS PEREZ Ref002393345 02/24/09 UB Refund Cst#0000086959 28.76 28.76 2016515 02/25/09 09912 CATHLEEN ROMERO Ref002393343 02/24/09 UB Refund Cst#0000081799 11.51 11.51 2016516 02/25/09 09933 CENTRAL MORTGAGE CO Ref002393364 02/24/09 UB Refund Cst #0000123577 30.17 30.17 2016517 02/25109 09949 CENTURY 21 ALL REAL ESTATE Ref002393380 02124/09 UB Refund Cst #0000133820 25.05 25.05 2016518 02/25/09 09897 CHERYL DENNISON Ref002393325 02/24/09 UB Refund Cst #0000016357 95.84 95.84 2016519 02/25/09 09931 CHRISTIAN KUJAWA Ref002393362 02/24/09 UB Refund Cst #0000122954 26.77 26.77 2016520 02/25/09 07830 CHRISTOPHER KLEMPAY Ref002393341 02124/09 UB Refund Cst #0000072787 90.63 90.63 2016521 02/25109 09941 COUNTRYWIDE Ref002393372 02/24/09 UB Refund Cst #0000126366 21.72 21.72 2016522 02/25/09 09894 DENNIS DESOUZA Ref002393322 02/24/09 UB Refund Cst#0000143224 15.19 15.19 2016523 02/25/09 09964 DOWNEY SAVINGS Ref002393395 02/24/09 UB Refund Cst#0000141200 75.00 75.00 Page 170f 26 OTAY WATERDISTRICT CHECK REGISTER FORCHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016524 02/25/09 09921 ERIC GONZALEZ Ref002393352 02124/09 UB Refund Cst #0000091902 30.04 30.04 2016525 02125/09 09957 ERICA MONJE Ref002393388 02/24/09 UB Refund Cst #0000140399 46.38 46.38 2016526 02/25/09 09947 FIELD ASSET SERVICE Ref002393378 02/24/09 UB Refund Cst #0000127689 48.04 48.04 2016527 02/25/09 09926 FRANCISCO OROZCO Ref002393357 02/24/09 UB Refund Cst#0000094486 33.49 33.49 2016528 02/25/09 09962 GARY KENTAND ASSOCIATES Ref002393393 02/24/09 UB Refund Cst#0000140900 54.18 54.18 2016529 02125/09 09969 GARY KENTAND ASSOCIATES Ref002393400 02/24/09 UB Refund Cst#0000141485 52.51 52.51 2016530 02/25/09 09958 GEUNHEEKIM Ref002393389 02/24/09 UB Refund Cst#0000140409 92.59 92.59 2016531 02125/09 09955 GLORIA M BAKER Ref002393386 02124/09 UB Refund Cst#0000140111 51.62 51.62 2016532 02/25/09 09981 GREGG PHILLIPSON Ref002393413 02/24/09 UB Refund Cst #0000142624 112.70 112.70 2016533 02/25109 09975 HERLINDA RYAN Ref002393406 02/24/09 UB Refund Cst #0000141876 34.26 34.26 2016534 02125/09 09940 HERLINDA RYAN INC Ref002393371 02/24/09 UB Refund Cst #0000126005 54.15 54.15 2016535 02/25109 09943 INNOVATIVE OIL &GAS Ref002393374 02/24109 UB Refund Cst #0000126726 504.08 504.08 2016536 02125/09 09913 ISABELLEJIMENEZ Ref002393344 02124/09 UB Refund Cst #0000085953 64.94 64.94 2016537 02/25/09 09904 JAMES CABANA Ref002393333 02/24/09 UB Refund Cst#0000052770 37.46 37.46 2016538 02/25109 09927 JAMULVISTA ESTATES LLC Ref002393358 02/24/09 UB Refund Cst#0000094917 1,099.01 1,099.01 2016539 02/25/09 09891 JEFFJENKEL Ref002393319 02/24/09 UB Refund Cst#0000142793 56.26 56.26 2016540 02125/09 09936 JESUS ORALIA BELTRAN Ref002393367 02/24/09 UB Refund Cst#0000125127 17.37 17.37 2016541 02/25/09 09924 JILL LANDRY Ref002393355 02124/09 UB Refund Cst#0000094267 6.89 6.89 2016542 02125/09 09922 JOSE CASTRO Ref002393353 02/24/09 UB Refund Cst #0000092423 37.59 37.59 2016543 02/25/09 09937 JOSE PITONES Ref002393368 02/24/09 UB Refund Cst #0000125176 41.35 41.35 2016544 02/25/09 09930 KASHETAH BEDFORD Ref002393361 02/24/09 UB Refund Cst #0000121387 58.73 58.73 2016545 02/25/09 09971 KELLY LEFFERDINK Ref002393402 02/24/09 UB Refund Cst #0000141632 50.02 50.02 2016546 02/25/09 09956 KELLY SHERMAN Ref002393387 02124/09 UB Refund Cst #0000140205 21.73 21.73 2016547 02/25/09 09942 KERA LEGLER Ref002393373 02/24/09 UB Refund Cst#0000126699 60.56 60.56 Page 180f 26 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016548 02/25/09 09907 KIMSERLY ELEBY Ref002393336 02/24/09 US Refund Cst #0000058488 49.88 49.88 2016549 02125/09 09893 LATHAM REALTY Ref002393321 02/24/09 UB Refund Cst#0000143171 37.81 37.81 2016550 02/25/09 09959 LINDARING Ref002393390 02/24/09 US Refund Cst#0000140431 140.43 140.43 2016551 02/25/09 09979 MANUELESPINOZA Ref002393411 02/24/09 UB Refund Cst #0000142529 79.28 79.28 2016552 02125/09 09963 MARC CARPENTER &ASSOC Ref002393394 02124/09 UB Refund Cst #0000140953 114.54 114.54 2016553 02/25/09 09967 MARC CARPENTER &ASSOC Ref002393398 02/24/09 US Refund Cst #0000141332 52.23 52.23 2016554 02125/09 09977 MARC CARPENTER &ASSOC Ref002393408 02124/09 UB Refund Cst #0000142024 63.54 63.54 2016555 02/25/09 09944 MARC CARPENTER &ASSOCIATES Ref002393375 02/24/09 US Refund Cst #0000126876 32.84 32.84 2016556 02125/09 09900 MARIAGUZMAN Ref002393329 02/24/09 US Refund Cst #0000030336 92.90 92.90 2016557 02125/09 09895 MARIA MARTINEZ Ref002393323 02124/09 US Refund Cst #0000143792 22.16 22.16 2016558 02/25/09 09910 MARLON CANGO Ref002393339 02/24/09 US Refund Cst#0000070373 17.94 17.94 2016559 02/25/09 09920 MICHAELMOYLAN Ref002393351 02/24/09 UB Refund Cst#0000091838 79.96 79.96 2016560 02125/09 09939 OAKTREE REALTY Ref002393370 02124/09 UB Refund Cst #0000125650 47.59 47.59 2016561 02/25/09 09950 OAKTREE REALTY Ref002393381 02/24/09 US Refund Cst #0000133847 50.55 50.55 2016562 02/25/09 09982 OAKTREE REALTY Ref002393414 02/24/09 UB Refund Cst#0000142667 68.31 68.31 2016563 02125/09 09928 OTAYCROSSING SELF STORAGE LLC Ref002393359 02/24/09 US Refund Cst #0000095094 775.50 775.50 2016564 02125/09 09945 OTAY MESA PROPERTY L Ref002393376 02/24/09 US Refund Cst #0000127034 353.03 353.03 2016565 02/25/09 09953 OTAY MESA PROPERTY LP Ref002393384 02124/09 UB Refund Cst #0000139845 296.32 296.32 2016566 02125/09 09934 OTAY RIVER CONSTRUCTORS Ref002393365 02/24/09 US Refund Cst#0000123817 768.89 768.89 2016567 02/25/09 09718 PEDRO PIDO Ref002393326 02/24/09 UB Refund Cst#0000023085 120.72 120.72 2016568 02/25/09 09938 PICKEREL BRITTANY Ref002393369 02/24/09 US Refund Cst#0000125305 17.45 17.45 2016569 02/25/09 09952 PLATINUM CIRCLE REAL ESTATE Ref002393383 02/24/09 UB Refund Cst#0000139688 60.96 60.96 2016570 02/25/09 09864 PREMIER NATIONAL REALTY GROUP Ref002393410 02/24/09 UB Refund Cst #0000142346 11.88 11.88 2016571 02/25/09 09972 PREMIER NATIONALREALTY GROUP Ref002393403 02/24109 UB Refund Cst #0000141747 75.00 75.00 Page 19 of 26 OTAYWATER DISTRICT CHECKREGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 214/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016572 02/25109 09917 RANCHO VISTA DEL MAR Ref002393348 02124/09 UB Refund Cst#0000089807 383.62 383.62 2016573 02125/09 09892 ROBERT SCHMIDT Ref002393320 02/24/09 US Refund Cst#0000142973 50.11 50.11 2016574 02/25/09 09923 ROSELLA PARRA Ref002393354 02/24/09 US Refund Cst #0000094034 154.45 154.45 2016575 02125/09 09902 SADIKSARNO Ref002393331 02124/09 US Refund Cst #0000040149 102.57 102.57 2016576 02/25/09 09976 SAN DIEGO REAL ESTATE OWNED Ref002393407 02/24/09 UB Refund Cst#0000141884 16.72 16.72 2016577 02/25109 09961 SAN DIEGO REALTV Ref002393392 02/24/09 US Refund Cst #0000140618 45.52 45.52 2016578 02125/09 09968 SAN DIEGO REALTY Ref002393399 02/24/09 US Refund Cst #0000141479 45.85 45.85 2016579 02/25/09 09906 SAN MIGUEL RANCH Ref002393335 02/24/09 UB Refund Cst#0000056565 1,059.36 1,059.36 2016580 02/25/09 09908 SERGIO CECENA Ref002393337 02/24/09 UB Refund Cst#0000065085 80.18 80.18 2016581 02/25/09 09929 SHANE SASS Ref002393360 02/24/09 US Refund Cst#0000121164 79.00 79.00 2016582 02125/09 09909 SILVIA GUZMAN Ref002393338 02124/09 UB Refund Cst#0000068268 11.33 11.33 2016583 02/25/09 09935 SUSAN PAYNE Ref002393366 02/24/09 US Refund Cst #0000124438 49.77 49.77 2016584 02/25/09 09899 TACO SELL Ref002393328 02/24109 US Refund Cst #0000027163 119.96 119.96 2016585 02/25/09 09903 TACO BELL Ref002393332 02/24/09 US Refund Cst #0000040766 168.95 168.95 2016586 02/25/09 09905 TACO BELL Ref002393334 02124/09 UB Refund Cst #0000055497 702.37 702.37 2016587 02/25/09 09948 TEAM TOWNSON Ref002393379 02/24/09 UB Refund Cst #0000132320 26.41 26.41 2016588 02/25/09 09951 TEAM TOWNSON INC Ref002393382 02/24/09 US Refund Cst #0000133934 50.03 50.03 2016589 02/25/09 09966 TONTZ TEAM INC Ref002393397 02/24/09 US Refund Cst #0000141255 135.14 135.14 2016590 02/25/09 09916 TPO LLC Ref002393347 02/24/09 UB Refund Cst #0000089449 554.11 554.11 2016591 02/25/09 09973 TPO LLC Ref002393404 02/24/09 US Refund Cst#0000141815 533.13 533.13 2016592 02/25/09 09974 TPO LLC Ref002393405 02/24/09 US Refund Cst #0000141816 404.24 404.24 2016593 02/25/09 09918 TWANDA HARRIS Ref002393349 02124/09 UB Refund Cst #0000091115 27.40 27.40 2016594 02/25/09 09911 VANESSA MORENO Ref002393342 02/24/09 UB Refund Cst #0000073881 75.00 75.00 2016595 02/25/09 09932 WILLOW GLEN PLAZA LP Ref002393363 02/24109 US Refund Cst #0000123104 487.35 487.35 Page 20 of 26 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2016170 THROUGH 2016699 RUN DATES214/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016596 02/25/09 01910 ABCANA INDUSTRIES 836799 02/02/09 BULK SODIUM HYPOCHLORITE 1,178.22 836798 02/02/09 BULK SODIUM HYPOCHLORITE 439.66 1,617.88 2016597 02125/09 08488 ABLEFORCE INC 1596 02/17/09 CONSULTING SERVICES -IS DEPT 3,570.00 3,570.00 2016598 02/25/09 00132 AIRGASWEST 103143521 01/31/09 BREATHING AIR -TREATMENT PLANT 25.73 25.73' 2016599 02125/09 01463 ALLIED ELECTRONICS INC 84959W01 02102/09 STEEL ENCLOSURE 869.84 869.84 2016600 02/25/09 06165 ANITA FIRE HOSE COMPANY ETC 07175 02/03/09 FIRE EXTINGUISHERSERVICE 66.35 66.35 2016601 02/25/09 02829 APPLIED TECHNOLOGY GROUP INC 190651 02/04/09 RADIO EQUIPMENT 4,650.59 4,650.59 2016602 02/25/09 05753 ARRIETA CONSTRUCTION INC 4 02/04/09 R2086 RWCWRF FORCEMAIN AIRIVAC REPL 357,541.26 357,541.26 2016603 02/25/09 03763 BERGE'S GOVERNOR SERVICE 19153 01/26/09 REPAIR 3,139.76 3,139.76 2016604 02/25/09 00559 BOYLE ENGINEERING CORPORATION 062400 01/30/09 PLAN CHECKS &INSPECTION SERVICE 14,751.55 062391 01/30/09 PLAN CHECKSERVICES 438.40 062399 01/30/09 RECYCLED WATER PLAN CHECKING SERVICES 361.45 15,551.40 2016605 02/25/09 00223 C W MCGRATH INC 32153 02103/09 CRUSHED ROCK 204.42 32141 02/02109 CRUSHED ROCK 200.18 32160 02/04/09 CRUSHED ROCK 133.05 537.65 2016606 02/25/09 09800 CALIFORNIA BANK&TRUST 1R 12/08/08 RETENTION 9,918.25 9,918.25 2016607 02/25/09 08009 CANON BUSINESS SOLUTIONS INC 4001814360 02/01/09 COPIER MAINTENANCE 706.31 4001814359 02/01/09 COPIER MAINTENANCE 487.56 4001816037 02101/09 COPIER MAINTENANCE 225.88 4001814901 02/01/09 COPIER MAINTENANCE 90.46 1,510.21 2016608 02/25/09 02758 CARMEL BUSINESS SYSTEMS INC 6930 02/01/09 RECORDS STORAGE &SUPPORT 3,457.25 3,457.25 2016609 02/25/09 04204 CASA DEL MAR 24720 02/04/09 RECOGNITION SHIRTS 123.10 123.10 2016610 02/25/09 06418 CHULA VISTA ELECTRIC CO 5863001 01/31/09 TROUBLESHOT/REPAIRED 2300 VOLT MCC 1,659.62 1,659.62 2016611 02125/09 06519 CHULA VISTA POLICE DEPT 0902824 02/19/09 TRAFFIC COLLISION REPORT 10.00 0903166 02119/09 TRAFFIC COLLISION REPORT 10.00 20.00 2016612 02/25/09 06252 CHULA VISTA SCHOOL DISTRICT 900477 01/22/09 BUS FUNDING TO WATER GARDEN 1,350.00 1,350.00 2016613 02/25/09 03334 COMPUTER MASTERS 73007 02103109 TARGUS MOBILE 150W AUTO POWER 538.64 538.64 2016614 02/25/09 03706 CONSUMERS PIPE &SUPPLY CO S1093017002 02/05/09 WAREHOUSE SUPPLIES 68.10 68.10 2016615 02/25/09 07601 CREATIVE BENEFITS INC 70761 02/01/09 FLEXIBLE SPENDING ACCT ADMIN 600.00 600.00 Page 21 of 26 OTAYWATER DISTRICT CHECKREGISTER FORCHECKS2016170THROUGH 2016699 RUN DATES2/4/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016616 02/25/09 03606 DCSE INC 2 02/01/09 INTEGRATION CONSULTING SERVICES 6,690.00 6,690.00 2016617 02/25/09 07680 DELTA HEALTH SYSTEMS IVC02743 01/31/09 EMPLOYEE HEALTH ADMIN SVCS 58.50 58.50 2016618 02/25/09 03744 DEPARTMENTOF JUSTICE 722418 02/04/09 FINGERPRINT ANALYSIS SERVICES 51.00 51.00 2016619 02/25/09 08023 EMPLOYEE BENEFIT SPECIALISTS 0045480lN 02/06/09 ADMINISTRATION FEES FOR COBRA 540.01 540.01 2016620 02/25/09 02939 ESCARCEGA,LUIS B 10823 02119109 CERTIFICATION REIMBURSEMENT 140.00 140.00 2016621 02/25/09 03757 FANDEL ENTERPRISES INC 1331 02/02/09 TELECOMMUNICATIONS CONSULTING SERVICE 3,990.00 3,990.00 2016622 02/25/09 03546 FERGUSON WATERWORKS 0303533 02104/09 INVENTORY 1,683.16 1,683.16 2016623 02125/09 08005 FIRST AMERICAN CORELOGIC INC 20436741 01/31/09 METROSCAN ONLINE DATNMAPS 453.15 453.15 2016624 02/25/09 08893 FIRST AMERICAN DATA TREE 90034019 01/31/09 ONLINE MAP PURCHASING SERVICE 190.84 190.84 2016625 02/25/09 04066 FIRST CHOICE SERVICES -SO 308117 02/04/09 COFFEE SUPPLIES 170.55 170.55 2016626 02/25/09 02591 FITNESS TECH INC 5505 02101109 FITNESS EQUIPMENT MAINTENANCE 125.00 125.00 2016627 02/25/09 03609 GBA MASTERSERIES INC 608053 01/30/09 SOFTWARE CONSULTING SERVICES 3,600.00 3,600.00 2016628 02/25/09 02187 GREENSCAPE 2107 02101109 LANDSCAPING SERVICES 6,090.00 6,090.00 2016629 02/25/09 04979 GROSSMONT WORK TRAINING CENTER 22165 01/31/09 MAILING SERVICES 325.72 325.72 2016630 02/25/09 03773 GTC SYSTEMS INC 28599 01/31/09 TECHNICAL SUPPORT FOR CITRIX 1,987.50 1,987.50 2016631 02125/09 02629 HANSON AGGREGATES INC 585406 02/03109 CRUSHED AGGREGATES &ROCK 414.36 414.36 2016632 02/25/09 09889 HARVEYJ WILLIAMS JR 001001 02112109 UTILITY EASEMENT 5,200.00 5,200.00 2016633 02/25/09 06640 HD SUPPLY WATERWORKS LTD 8535848 01/30/09 INVENTORY 7,273.13 8503321 01/30/09 URINALS WITH FLUSH VALVE 6,737.61 14,010.74 2016634 02/25/09 04472 HECTOR I MARES-COSSIO 46 12/31/08 BI-NATIONAL CONSULTANTSERVICES 3,600.00 47 01/31/09 BI-NATIONAL CONSULTANT SERVICES 3,600.00 7,200.00 2016635 02/25/09 00062 HELIX WATER DISTRICT 178540010209 02/05/09 WATER BILL -AVOCADO BLVD 93.55 174639860209 02/05/09 WATER BILL -RUSSELL SQ 36.50 130.05 2016636 02/25/09 08610 HENRY BROS ELECTRONICS INC 131001081 01/31/09 INSTALLATION OF SOFTWARE PATCHES 2,565.00 2,565.00 2016637 02/25109 00713 HEWLETT-PACKARD COMPANY 45562514 02/05/09 PERSONAL COMPUTERS 4,843.36 45557062 02/04/09 PRINTSERVER 115.29 4,958.65 Page 22 of 26 OTAYWATERDISTRICT CHECK REGISTER FOR CHECKS 2016170 THROUGH 2016699 RUN DATES 214/2009 TO 2/25/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016659 02/25/09 02037 MWH LABORATORIES 262704L1 01/30109 LABORATORYANALYSES 150.00 150.00 2016660 02/25/09 00510 OFFICE DEPOTINC 462560803001 02/04/09 OFFICE SUPPLIES 96.33 462561240001 02104109 OFFICE SUPPLIES 9.69 106.02 2016661 02/25/09 00496 ONESOURCE DISTRIBUTORS LLC S3061476001 02/03/09 POWER PANELBOARD 381.46 381.46 2016662 02/25/09 09953 OTAY MESAPROPERTYLP 001025 02/23/09 DEPOSIT FOR MAINT AGREEMENT 11,752.75 11,752.75 2016663 02/25/09 03780 OWEN,DOUGLAS WESTLEY 16330105 02/18/09 REIMBURSE CONF EXPENSES 195.96 195.96 2016664 02/25/09 07499 PACIFIC BUILDING MAINTENANCE 16028 02/06/09 JANITORIAL SERVICES 2,795.00 2,795.00 2016665 02125/09 09984 PADRE DAM'S SANTEE LAKES 001023 02/24/09 COMPANY PICNIC DEPOSIT 545.00 545.00 2016666 02/25/09 05497 PAYPAL INC 3439736 01/31/09 ON-LINE PAYMENTSERVICES 461.50 461.50 2016667 02/25/09 03308 PBS&J 1033193 01/30109 2009 MASTER PLAN UPDATE 55,333.21 55,333.21 2016668 02/25/09 03790 PENHALL COMPANY 21129 01/31109 CONCRETE DRILLING SERVICES 255.00 255.00 2016669 02/25/09 07602 PLUMBERS DEPOT PD10598 02/02109 CCTVREPAIR 340.00 340.00 2016670 02/25/09 09890 PROGRESSIVE WEST INSURANCE CO 001021 02/23/09 CLAIM REIMB-CLAIM PAID IN ERROR 10,000.00 10,000.00 2016671 02/25/09 06641 PRUDENTIAL OVERALL SUPPLY 0070429 02/05/09 UNIFORMS 325.90 0070428 02105/09 MATS,TOWELS &SUPPLIES 134.72 0070430 02105/09 MATS,TOWELS &SUPPLIES 100.80 0066672 02104/09 MATS,TOWELS &SUPPLIES 93.54 0070431 02/05/09 UNIFORMS 57.91 712.87 2016672 02/25/09 00078 PUBLIC EMPLOYEES RETIREMENT Ben2393151 02119/09 PERS CONTRIBUTION 123,516.63 123,516.63 2016673 02125/09 09804 PUBLICIA PRESS LTO 20092029 02/05/09 BUSINESS CARDS 59.26 20092029RP 02105/09 BUSINESS CARDS 45.79 105.05 2016674 02125/09 02041 RBF CONSULTING 8120547 01/30109 SANITARY SEWER CCTV INSPECTION 2,706.00 2,706.00 , 2016675 02/25/09 00021 RCP BLOCK&BRICK INC 4333222 01/31/09 CONCRETE 961.67 961.67 2016676 02/25/09 06645 RELIABLE ELEVATORINC 15812 02/01/09 ELEVATOR SERVICE &MAINTENANCE 416.01 416.01 2016677 02125/09 03279 ROTH STAFFING COMPANIES LP 12276937 02/13/09 TEMPORARY SERVICES -HR DEPT 1,315.20 1.315.20 2016678 02/25/09 00362 RYAN HERCO PRODUCTS CORP 6538424 CREDIT MEMO (85.50) 6538551 01/27/09 CPVCGLUE 124.81 6544110 02104/09 CPVC GLUE 124.65 163.96 Page 24of 26 •..•..·..t"'''''':;;g;;;;;;:ii'!;/lo;Q '">,.,,..,-. OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2016170 THROUGH 2016699 RUN DATES 21412009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016679 02/25/09 04661 SAN DIEGO COUNTYWATER 001014 02/18/09 MEMBERSHIP RENEWAL 30.00 30.00 2016680 02/25/09 00121 SAN DIEGO GAS &ELECTRIC 001017 02/19/09 UTILITY EXPENSES 30,808.09 001022 02/19/09 UTILITY EXPENSES 13,957.36 44,765.45 2016681 02125/09 03701 SAN DIEGO PROJECT HEARTBEAT SD2592 02/05/09 AUTOMATIC EXTERNAL DEFIBRILLATORS 150.00 150.00 2016682 02/25/09 05627 SIGNA DIGITAL SOLUTIONS INC ARS23807 01/30/09 COPIER MAINTENANCE 200.00 ARS23892 02/03/09 COPIER MAINTENANCE 200.00 ARS23924 02103/09 COPIER MAINTENANCE 200.00 ARS23927 02/03/09 COPIER MAINTENANCE 144.00 ARS23806 01/30/09 COPIER MAINTENANCE 34.20 778.20 2016683 02/25/09 00258 SLOAN ELECTRIC CO 0055193 01/30/09 REBUILD PUMP 29,210.75 0055192 01/30/09 VIBRATION ANALYSIS TEST 572.50 29,783.25 2016684 02/25/09 03760 SPANKY'S PORTABLE SERVICES INC 799163 02/05/09 PORTABLE TOILET RENTAL 98.15 98.15 2016685 02/25/09 03516 SPECIAL DISTRICT RISK 27841 02/13/09 INSURANCE PREMIUM 123.75 123.75 2016686 02125/09 02354 STANDARD ELECTRONICS 12074 01/30/09 SECURITYSERVICE &REPAIRS 149.65 149.65 2016687 02/25/09 07678 STREAMLINE FORMS &GRAPHICS 34851 01/31/09 SITE PRE-INSPECTION FORMS 88.36 88.36 2016688 02/25/09 06841 SUPERIOR ENVIRONMENTAL 0902015 02/03/09 DATA CENTER CLEANING SERVICES 1,000.00 1,000.00 2016689 02/25/09 00408 SWEETWATERAUTHORITY 001015 02/10/09 HOA WORSHOP SHARE 188.09 188.09 2016690 02/25/09 02799 TARULLI TIRE INC -SAN DIEGO 20036829 01/15/09 TIRE SERVICE 105.49 20036910 01/20/09 TIRE SERVICE 101.99 20036792 01/13/09 TIRE SERVICE 20.35 20036791 01/13/09 TIRE SERVICE 17.23 245.06 2016691 02/25/09 02376 TECHKNOWSION INC 2123 02/05/09 MISC SUPPORT SERVICE 1,925.00 1,925.00 2016692 02/25/09 06847 THIRD AVENUE VILLAGE ASSN 001024 02/24/09 CINCO DE MAYO SPACE RESERVATION 150.00 150.00 2016693 02/25/09 09888 THOMAS BREEN 001002 02/12/09 TEMP CONSTRUCTION EASEMENT 700.00 700.00 2016694 02/25/09 00427 UNDERGROUND SERVICE ALERT OF 120090446 02/01/09 UNDERGROUND TRENCH SERVICE ALERTS 303.00 303.00 2016695 02125/09 00075 UNION TRIBUNE PUBLISHING CO 0010197066 02/17/09 CONSULTING SERVICES 249.60 249.60 2016696 02/25/09 08262 UNITED RENTALS NORTHWEST INC 79405352001 02/03/09 CONCRETE 222.24 222.24 2016697 02/25/09 03436 UNITED STATES POSTAL SERVICE OWD14095 02/24/09 POSTAGEIWATER CONSERVATION MAILINGS 2,752.63 2,752.63 Page 25of 26 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2016170 THROUGH 2016699 RUN DATES 2/4/2009 TO 2125/2009 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2016698 02/25/09 08028 VALLEY CONSTRUCTION MANAGEMEN-50080204 01/31/09 AS-NEEDED CONSTRUCTION MANAGEMENTSV 11,620.00 11,620.00 2016699 02/25/09 03151 ZHAO,MING GRAND TOTAL 15380808 02/17109 REIMBURSE CONF EXPENSES Page 26 of 26 173.10 2,213,018.97 173.10 2,213,018.97