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HomeMy WebLinkAbout11-01-06 Board PacketOTAY WATER DISTRICT BOARD OF DIRECTORS MEETING DISTRICT BOARDROOM 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY,CALIFORNIA WEDNESDAY November 1,2006 3:30 P.M. AGENDA 1.ROLL CALL 2.PLEDGE OF ALLEGIANCE 3.APPROVAL OF AGENDA 4.APPROVAL OF MINUTES OF THE REGULAR BOARD MEETING OF SEPTEM- BER 6,2006 5.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA CONSENT CALENDAR 6.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PAR- TICULAR ITEM: a)APPROVE A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT FIXING TERMS AND CONDITIONS FOR THE AN- NEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT OF THOSE LANDS DESCRIBED AS "CHAVEZ ANNEXATION"(APN 595-020- 17)AND ANNEXING SAID PROPERTY TO OTAY WATER DISTRICT IM- PROVEMENT DISTRICT NO.22/27 (WO 00210-20.282/DIVISION 4) b)RECEIVE INFORMATION ON THE DISTRICTS SCHOOL EDUCATION PROGRAM c)RECEIVE INFORMATION ON THE 2006 CUSTOMER SURVEY 1 d)APPROVE UTILITY AGREEMENTS NO.31756 AND 31817 WITH CAL- TRANS FOR THE SR 905 UTILITY RELOCATIONS e)AWARD A CONSTRUCTION CONTRACT FOR THE LOWER OTAY PUMP STATION ACCESS ROAD TO KOCH-ARMSTRONG GENERAL ENGI- NEERING,INC.IN TH'E AMOUNT OF $76,800 f)APPROVE AN AGREEMENT BETWEEN THE SAN DIEGO COUNTY WA- TER AUTHORITY (CWA)AND THE OTAY WATER DISTRICT FOR THE DESIGN,CONSTRUCTION,OPERATION,AND MAINTENANCE FOR THE OTAY 14 FLOW CONTROL FACILITY MODIFICATIONS CONTINGENT UPON CWA BOARD OF DIRECTORS APPROVAL OF SUBSTANTIALLY THE SAME INFORMATION /ACTION ITEMS 7.ADMINISTRATION AND FINANCE a)ACCEPT THE DISTRICT'S COMPREHENSIVE ANNUAL FINANCIAL RE- PORT (CAFR),INCLUDING THE INDEPENDENT AUDITORS'UNQUALI- FIED OPINION,FOR THE FISCAL YEAR ENDED JUNE 30,2006 (CUDLlP) b)INFORMATIONAL ITEM.IN LIGHT OF THE SUPREME COURT'S DECI- SION IN BIGHORN DESERT VIEW WATER AGENCY V.VERJIL,THE DISTRICT WILL BE SCHEDULING A PUBLIC HEARING ON JANUARY 3, 2007,DURING ITS REGULARLY SCHEDULED BOARD MEETING,TO CONSIDER PUBLIC COMMENT AND INPUT RELATED TO ITS RATE STRUCTURE AND THE RATE INCREASE PROPOSED IN MAY 2006 FOR IMPLEMENTATION IN JANUARY OF 2007 (BEACHEM) 8.BOARD INFORMATION /ACTION ITEMS a)DISCUSSION OF 2006 BOARD MEETING CALENDAR REPORTS 9.GENERAL MANAGER'S REPORT a)UPDATE ON THE 30"RECYCLED WATER PIPELINE PROJECT (SEE AT- TACHMENT "A") b)SAN DIEGO COUNTY WATER AUTHORITY UPDATE 10.DIRECTORS'REPORTS /REQUESTS RECESS TO CLOSED SESSION 2 11.CLOSED SESSION a)POTENTIAL LITIGATION [GOVERNMENT CODE §54956.9 ONE (1)NEW CASE] RETURN TO OPEN SESSION 12.REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION.THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. 13.ADJOURNMENT All items appearing on this agenda,whether or not expressly listed for action,may be de- liberated and may be subject to action by the Board. 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 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on October 27,2006,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 October 27,2006. 3 AGENDA ITEM 4 MINUTES OF THE BOARD OF DIRECTORS MEETING OTAY WATER DISTRICT September 6,2006 1.The meeting was called to order by President Bonilla at 3:33 p.m. 2.ROLL CALL Directors Present: Staff Present: Bonilla,Breitfelder,Croucher,Lopez and Robak General Manager Mark Watton,Asst.GM Administration and Finance German Alvarez,Asst.GM Engineering and Water Operations Manny Magana,General Counsel Yuri Calderon,Chief of Information Technology Geoff Stevens, Chief Financial Officer Joe Beachem,Chief of Operations Pedro Porras,Chief of Engineering Rod Posada,Chief of Administration Rom Sarno,District Secretary Susan Cruz and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.MOMENT OF SILENCE A moment of silence was held in remembrance of employee Mr.Mike Dyer who had recently passed away. 5.APPROVAL OF AGENDA A motion was made by Director Breitfelder,seconded by Director Lopez and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to approve the agenda. 6.APPROVAL OF MINUTES OF THE BOARD MEETINGS OF JUNE 7,2006 AND JULY 5,2006 A motion was made by Director Breitfelder,seconded by Director Robak and carried with the following vote: Ayes: Noes: Abstain: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None 1 Absent:None to approve the minutes of the board meetings of June 7 and July 5,2006. 7.PUBLIC PARTICIPATION -OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard. CONSENT CALENDAR 8.ITEMS TO BE ACTED UPON WITHOUT DISCUSSION,UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Croucher,seconded by Director Robak and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to approve the following consent calendar items. a)ADOPT RESOLUTION NO.4087 AMENDING POLICY NO.4, QUOTATIONS FOR FEES OR CHARGES,ESTABLISHING A PERIOD OF TIME THAT WRITTEN QUOTATIONS ARE VALID b)APPROVE A ONE-TIME PAYMENT OF $5,000 TO THE WATER CONSERVATION GARDEN TO PROVIDE FUNDING FOR BOARD SECRETARY SUPPORT c)AWARD A PROFESSIONAL SERVICES CONTRACT TO REA & PARKER RESEARCH AND DOUGLAS COE OF THE SOCIAL SCIENCE RESEARCH LABORATORY TO CONDUCT THE 2006 CUSTOMER SERVICE,SATISFACTION,AND AWARENESS SURVEY FOR AN AMOUNT NOT TO EXCEED $27,500 INFORMATION /ACTION ITEMS 9.ADMINISTRATION AND FINANCE a)PRESENTATION OF THE BOARD OF DIRECTORS 4TH QUARTER EXPENSES FOR FISCAL YEAR 2006 (PRENDERGAST) 2 Finance Supervisor Sean Prendergast indicated that Board of Directors Policy 8 requires that staff present the expenses and per diems for the board members on a quarterly basis.He indicated that this item was also reviewed by the Finance and Administration Committee at a meeting held on May 24,2006.He presented slides showing in detail each director's expenses for the fourth quarter of fiscal year 2006 (April to June 2006)and total expenses for each.He indicated that the total board of director expenses and per diems for fiscal year 2006was $29,482.95 and staff had projected $28,604. b)RECEIVE THE INVESTMENT POLICY (BOARD OF DIRECTORS POLICY NO.27)AND ADOPT RESOLUTION NO.4088 AMENDING THE POLICY AND RE-DELEGATING AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER (CUDLlP) Finance Manager James Cudlip indicated that a goal of the Finance Department is to improve the financial policies,procedures and reports.He stated that the current policy has always met minimum standards per State regulations, however,staff is recommending changes to improve upon the current policy.He stated that the guidelines primarily followed were those of the California Government Code.He stated that additional sections were added to the investment policy that were industry practices that the District currently follows, however,they were never codified within the policy.In addition,it provides details of the types of authorized investments currently made by the District and proposes the removal of two investment types:C.Time Deposits,non negotiable and collateralized,and F.Collateralized Repurchase Agreements.Chief Financial Officer Joe Beachem indicated that staff is also recommending that the limit for Government Agency Bond investments be increased from 70%to 100%. Finance Manager Cud lip indicated that Government Agency Bonds are very similar to U.S.Treasury Bills as far as liquidity and safety.All professional finance organizations recognize that up to a limit of 100%of the portfolio is well within the risk boundaries of public agencies and is authorized by the State Code.He stated that it,thus,did not make sense to limit the District to an artificial boundary of 70%for something that is a primary investment. Government Agency Bonds are very safe,very liquid and the easiest to get in and out of.He stated the reason to diversify and limit percentages of your portfolio is to limit risk and Government Agency Bonds are very low on the risk scale. It was discussed in the past the District felt that 100%was too high.Today the District is becoming a little more conservative in its investments.There was also discussion regarding the reasons for broadening some of the investment language.Finance Manager Cudlip indicated that essentially verbiage within the policy is a restatement of the California Code and is also covered in a broad sense in other areas of the policy.He stated that it was felt that it did not make sense to include the additional verbiage and basically the redundant verbiage is being removed.President Bonilla indicated that he felt if the District was going to change its direction to either more liberal or conservative,he felt that it should be reflected within the District's mission statement. 3 Finance Manager Cudlip indicated that staff proposed removal of the C.Time Deposits,non negotiable and collateralized,and the F.Collateralized Repurchase Agreements as they fit more with larger agencies who invest more than a billion dollars (i.e.,City of Los Angeles,City of San Diego,etc.)because of the collateralization requirements of these type of investments.He stated this type of investment would be very active and an organization who would take more time to analyze and research the collateralization.He stated that to do so is beyond the District's core business.He stated the investments that have been identified are more sufficient to provide an adequate return on the District's investments without the additional time and risk to research such investments. He indicated that staff does not see the District being that aggressive.Chief Financial Officer Beachem indicated that this was a very solid Investment Policy. He stated that the policy had been submitted to the District's peers (three professional finance organizations)for review.He stated that the Association of Public Treasurers of the United States and Canada (APT US &C)reviews investment policies nationally and the chairman of the Investment Policy Review Committee indicated that the District's policy has received the highest rating he has seen in several years.Financial Manager Cudlip stated that the comments from the three graders were that the policy was "nicely written"and had "one of the highest scores we've (they've)ever given."He reviewed the grading process and indicated that the graders were allowed to give a varying number of points and they graded the policy as follows: 1.127 out of 128 points 2.121 out of 121 points 3.115 out of 118 points He stated that the types of comments made were semantic,but there were no substantial changes. President Bonilla requested that anytime staff wished to change the philosophy of a policy,he asked that it be brought to committee.He indicated that he wished the board to understand the reason for the philosophy change. Finance Manager Jim Cudlip indicated that the investment policy would assist the District in acquiring a good bond rating for the debt issuance (Certificates of Participation)planned late in this fiscal year.He indicated that staff is requesting that the board adopt Resolution No.4088 amending the Investment Policy as presented to meet industry best management practice standards and re-delegate the authority for all investment related activities to the Chief Financial Officer. Director Breitfelder inquired with regard to the deleted investment types if the district would incur any opportunity costs.Finance Manager Beachem indicated that it would not. Director Robak indicated that the Finance and Administration Committee reviewed this item at a meeting held on August 21,2006 and he is realizing that 4 he was not very clear on the process so he wished to confirm the process so he understood it.It was discussed that the District worked with the finance agencies to develop the new investment policy.It was then sent out for their final review which had been very positive.He indicated that he felt that staff is really doing their homework and is looking out for the best interest of the District and ultimately the policy would result in the best rating and pricing on the debt to be issued.He complimented staff for their work and presenting a very thorough and comprehensive policy. A motion was made by President Bonilla,seconded by Director Lopez and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to approve staffs'recommendation. 10.ENGINEERING AND WATER OPERATIONS a)CAPITAL IMPROVEMENT PROGRAM (CIP)FISCAL YEAR-END 2006 UPDATE Chief of Engineering Rod Posada provided a 2006 Year-End Report on the District's Capital Improvement Program.He indicated that this item was presented to the Engineering and Operations Committee on August 23,2006 and the committee had made suggestions which have been incorporated into this presentation.He indicated that the District had 101 projects totaling $39.3 million in Fiscal Year 2006 (FY06).He stated of the $39.3 million projected to be spent in FY06,the District spend $36,277 or 92%of planned expenditures.He stated that the goal was 75%of planned expenditures and staff has exceeded this expectation.He indicated that the District's CIP is broken down into four categories: •Capital Facility Projects •Maintenance Projects •Capital Purchase Projects •Developer Reimbursement Projects TOTAL: $28,937,000 $1,766,000 $2,680,000 $5,897,000 $39,280,000 He stated that the total projects are worth $187,792,000 of which $85,451,000 has been spent which is 46%of the total project budget. He presented a slide depicting a map showing the District's major CIP projects, their status and their location within the District's service area.He stated of the fifteen active projects in FY06,three are in the planning stage,four are in design, three in construction and five have been completed.He reviewed the status of 5 the District's flagship projects that have been completed which included the 980- 2 Pump Station,30-lnch Pipeline within the 980 pressure zone,803-46 MG Reservoir and the 1485-2,1.6 MG Reservoir.He also provided a status update on the flagship CIP projects in the construction phase.He stated that the 30-lnch Recycled Water Pipeline Project is expected to be completed in the Fall of 2006 and the 450-1 Reservoir and 680-1 Pump Station is scheduled to be completed in the Spring of 2007. Chief of Engineering Posada indicated that his report includes detailed updates on the progress of major projects.He indicated that he would not review each in detail,but if the board had an interest in a particular project,he would be happy to provide an update on the project of interest.There were no questions.He also stated that he wished to highlight that the 980-2 Pump Station will receive an APWA Honor Award (American Public Works Association)on September 14, 2006. He indicated that the District has approximately $10 million in various consultant contracts for planning,design,public services,construction/inspection,and environmental and has expended approximately 71 %of the total consultant contracts.He indicates with regard to construction contracts,the District has approximately $43 million in construction contracts and has expended approximately 79%of the total.He indicated that the District continues to keep construction change orders incidents to a very low level at -1.5%compared to the industry average of 5 to 12%.He also noted that included with his report is a listing of all 101 projects within the District's CIP and the status of each.He noted again that the total cost of all projects is $187,792,000 of which $85,451,000 has been spent or 46%of the total budget for all projects. Director Breitfelder congratulated staff on receiving the APWA Award.He also inquired on the status of the recycled water pipeline.Chief of Engineering Posada indicated that the pipeline is approximately 95%complete and the pump station and reservoir are approximately 80%complete.He stated that staff would begin testing the pipeline this month (October)and it is expected that the reservoir and pump station would begin testing in late December 2006 or early January 2007. Director Robak inquired when a new facility goes into service is the punch list completed for the project.Chief of Engineering indicated that the punch list is treated as a warrantee item and it is not necessarily complete when the facility is put into service.Director Robak inquired what is meant when the District "accepts"a facility.Chief of Engineering Posada indicated that there are three phases:1)the facility is operationally complete and it is put into service;2)the project is then "accepted"which triggers the 35 days to release the retention (at this point the project is 99%complete and operational);3)the project goes into a one year warrantee period in which a warrantee bond is held by the District. Chief of Engineering indicated that in most cases a facility is fully operational long before a notice of "acceptance"is issued.This occurs because the 6 contractor must submit a myriad of documents prior to the District accepting the facility. President Bonilla indicated that he would be recusing himself from consideration or participation in the following two items with regard to Cricket Communications. He handed the gavel to Vice President Lopez who would preside over discussion of the items and indicated that he would be stepping down from the dias during the discussion of the items.He stated for the records,he has ongoing discussion with Cricket Communications for a communication facility on a property that he owns.He stated that he has been advised by the District's General Counsel that he should recuse himself as a result of a potential conflict of interest.He stated that he has not participated in any of the discussions or negotiations between the District and Cricket other than to advise the General Counsel and the General Manager that he has had not discussion with anyone at the District regarding his dealings with Cricket or the District's dealings with Cricket. President Bonilla stepped down from the dias at 4:19 p.m. b)APPROVE THE EXECUTION OF AN AGREEMENT WITH CRICKET COMMUNICATIONS,INC.,A DELAWARE CORPORATION,FOR THE INSTALLATION OF A COMMUNICATIONS FACILITY AT THE 485-1 RESERVOIR SITE APPROVE THE EXECUTION OF AN AGREEMENT WITH CRICKET COMMUNICATIONS,INC.,A DELAWARE CORPORATION,FOR THE INSTALLATION OF A COMMUNICATIONS FACILITY AT THE 458-1&2 RESERVOIR SITE (VAUGHN) General Manager Watton indicated that this item and the following item were essentially the same request with the exception of the square footage of the leases.The agreements are the District's standard agreement for cellular leases and they have been reviewed by the Finance and Administration Committee. The committee had suggested that the agreements be placed on the consent calendar,however,because President Bonilla must recuse himself from participation in the consideration of the agreement,they have been placed on the action calendar. Director Croucher noted that there was a typographical error in staff's report with regard to the number of cellular facilities at the 485-1 Reservoir Site.He noted that Cricket Communications would be the "third"cellular provider at the site (as opposed to the fourth)as the report only lists two lessees.Staff indicated that that "fourth"was actually correct,however,staff should have listed the current providers as Nextel,T-Mobile and Verizon. Director Robak indicated that with regard to the minutes from the committee meeting he would like it noted that he had requested a minimum /maximum be identified for the annual inflation adjustment each year or something higher than 3%as opposed to leaving the rate "open".He stated that it was indicated at the 7 meeting that staff did try to negotiate with the cellular companies on something different than 3%but the cellular companies were not open to doing so,but he still wished to amend the committee meeting notes.He indicated that he also requested that staff survey other agencies to check the lease rates that they receive for such agreements.He stated that he was in support of the approval of the agreements. A motion was made by Director Croucher,seconded by Director Breitfelder and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to approve staffs'recommendation on both agreements. 11.BOARD a)DISCUSSION OF 2006 BOARD MEETING CALENDAR There were no changes to the board calendar.General Manager Watton noted that a Special Board meeting has been scheduled on Monday,September 25, 2006. b)CONSIDERATION TO CAST A VOTE TO ELECT A REPRESENTATIVE TO THE CALIFORNIA SPECIAL DISTRICTS ASSOCIATION BOARD OF DIRECTORS A motion was made by Director Croucher,seconded by Director Robak and carried with the following vote: Ayes: Noes: Abstain: Absent: Directors Bonilla,Breitfelder,Croucher,Lopez and Robak None None None to cast the District's vote for the incumbent,Ms.Jo MacKenzie. REPORTS 12.GENERAL MANAGER'S REPORT General Manager Watton indicated that he met with the Jamul Indian Village (JIV)chairman,Mr.Lee Acebedo.Mr.Acebedo provided an update on where the JIV was with their Environmental Impact Report and other issues related to the development of their proposed casino.He stated that the JIV had submitted a sub-area master plan and it does appear that with their current plan the District 8 will be able to serve their facility with existing infrastructure.He stated that their EIR has been submitted for public review and they are proceeding forward.He also shared that their EIR reflects that they will build a treatment plant to handle the sewage from the casino.He indicated that this could change,but at this point this is their plan. He noted that the District held an Employee Information Meeting and luncheon in July.He stated that he felt it was a good event and that the employees had enjoyed the luncheon. He indicated that the District has selected a compensation study expert,Johnson and Associates,to assist with the District with its study in preparation for negotiations. General Manager Watton stated that the District's Interactive Voice Response (IVR)system is now operational.Staff has received good feedback,thus far,on the new system.He indicated that Phase II will be implemented soon which will allow customers to pay bills over the phone system. He noted that staff is completing the review of its year-end Fiscal Year 2006 Strategic Plan objectives and performance measures and expects to present the information to the board next month and is planning on additional Strategic Plan workshops in the fall. He indicated that a new optional payment method via the District's IVR system will soon be available to customers.Customers will have the ability to automatically pay their bill through the District's phone system via credit card.He stated that one of the objectives within the District's Strategic Plan is making it as easy as possible for customers to interact with the District and pay their bills.He indicated that he felt the District has made some progress in this respect and will soon provide a new option through the IVR system.The District's current method of payment includes automated checking account deductions,through the District's website,by calling in,mailing in a payment and walk-ups (district and postal annex). General Manager Watton also shared that the District is reviewing proposals from actuaries who will be retained to help evaluate and determine the liability of Other Post Employment Benefits (OPEB).He stated that this is an issue that many other agencies will be reviewing as they have not yet created a reserve to fund these benefits.He indicated the District has reserved approximately $18 million and staff would like to re-evaluate and confirm this number.He indicated that in a couple years it will be mandated that such figures be reported on organization's balance sheets (GASB 45).He stated that the District is in good shape in meeting this requirement and staff may be recommending in future that the figure be removed from the balance sheet by placing the funds in a trust. He noted that the audit site work has been completed and that the District was not anticipating any management letter comments.He stated that the audit will 9 be key when the District begins the process to issue debt.He commended staff for their good work. He indicated that the City of San Diego and the United States Bureau of Reclamation have executed the Title XVI Cooperative Agreement for grant funding for the District's recycled projects.He stated that there was $1.2 million in funding available for this project this year and the District will be looking for up to $12 million over the next couple of years.He also shared that the District has submitted the required disbursement requests for the Proposition 50 grant of $4 million to the state and staff expects to receive the monies sometime soon. He lastly noted that attached to his General Manager report is an updated Otay Water District listing on SANDAG.He stated that it provides information on the District's demographics and estimates that the District's total population,as of January 1,2006,is 189,623.He noted the various demographic statistics on the listing. Director Breitfelder inquired with regard to the average household size,if the figure noted of 3.15 was higher than average in the county.General Manager Watton indicated that it is slightly higher.The average in the county is slightly under 3. 13.SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher indicated that with regard to the American Lining Project lawsuit,it is continuing to look positive for CWA and it is expected that the project would move forward without any further issues. He indicated that the CWA board approved a seat for Riverview and Lakeside Water Districts on CWA's board which will increase the number of members to 35.He indicated that CWA had a success story with regard to the Small Contractor Outreach and Opportunities Program (SCOOP)Committee.He indicated that a small business has been experiencing success because of the SCOOP program. He noted that things were slowing down at CWA as we nears the end of the year and the fact that there will be new appointments to CWA's board due to elections. He indicated that the Skinner Treatment Plant has been working at 105%of its capacity on several occasions due to the weather.He noted that the Twin Oaks Treatment Plant will eventually provide relief to the situation at Skinner and once the reclaimed water is online from the Southbay Reclamation Treatment Plant to Otay's system,it will also provide some relief.He stated that the reclaimed water connection will be a real asset to the region and is something that the District should get recognition from CWA for its investment for the region. 10 He lastly noted that the Water Conservation Summit will be held on September 29,2009 at the Joan Croc Center on the campus of the University of San Diego. General Manager Watton also stated with regard to the recycled water from the Southbay Reclamation Treatment Plant,that the Otay board approved a couple years ago a portable pump at the City of San Diego's Otay Treatment Plant and the District has been consistently taking 7 to 10 MGD from the City.He stated that this connection is not discussed at CWA,but it is a great relief on their system. He also noted that a city delegate on the CWA board,Mr.George Loveland,has left the board.He indicated that Mr.Loveland was in line to chair the CWA board and be appointed a MET delegate.He stated that Ms.Fern Steiner will now be in line to chair CWA and he (General Manager Watton)may be in line to take the secretary position.He stated that CWA will also have some new delegates to MET.H~stated that Jim Bond has appointed himself chair for the MET delegates and Jim Barrett and possibly another city delegate will be appointed to the MET delegates.He stated currently,everyone operates on their own and it is hoped that the CWA board officers,MET delegates,committee chairs and consultants would work very closely together to formulate strategies for both CWAand MET. 14.GENERAL COUNSEL'S REPORT ON PROPOSITION 218 General Counsel Yuri Calderon indicated there has been a lot of discussion on a recent Supreme Court decision issued in July 2006 concerning the Bighorn Desert View Water Agency v.Verjil.He stated that the decision was with regard to the application of Proposition 218 to water rates.He indicated that Prop 218 was adopted by the voters in 1996 and went into effect in 1997.He stated that the common perception was that it did not apply to water rates because water rates were based on the usage of water service.He indicated as long as an agency did not tie rates to actual property ownership,it was exempt from Prop 218.He stated that there were a couple of Attorney General opinions and a second Court of Appeal opinion that stated that water rates were exempt from Prop 218.He stated the July decision of the Supreme Court,and possibly another earlier Supreme Court decision,had stated that Prop 218 does apply to water rates.He indicated that the July decision states that Prop 218 does apply to water rates and,thus,from this point forward,all agencies must go through the Prop 218 process when adopting water and sewer rates.He stated that,as a water rate, the District is exempt from the requirement that rates be approved by two-thirds of its voters,but the District must still provide notice and an opportunity to its customers to present written comments and verbal comments through a public hearing prior to implementing the new water or sewer rates. He stated there was still discussion as to whether the decision was retroactive to 1997.It is being indicated that because the decision had overturned a Court of Appeals decision,that it clearly has a retroactive affect.General Counsel Calderon indicated that if this were true,then every water rate increase since 11 1997 would be called into question.He stated this view would simply bankrupt every water agency. He indicated that his firm's initial advise to the board is that the Supreme Court decision does not have a retroactive affect and he would be providing a written opinion to the board under the attorney client communication.He stated that from a public policy perspective,the decision does not have a retroactive affect. He stated that future increases must follow the Prop 218 process and provide notice to the public and the District must hold a public hearing.President Bonilla requested that General Counsel also provide a written policy along with Counsel's opinion on this issue.General Counsel Calderon indicated that the request was in the process already and should be presented in the near future. 15.DIRECTORS'REPORTS/REQUESTS Director Robak inquired about an item noted within the GM Report concerning a week long workshop with Eden to review some fixes and enhancements to the system.He asked if there were some problems with the system.General Manager Watton indicated that there were no problems with the system.Staff was discussing how the District could get maximum efficiency from the programs. He stated that the programs/systems are very complicated and staff is learning each day on how to better use or integrate the system.He stated that there were issues on another plane that staff needed to correct through some warrantee work,but the workshop was more of a discussion on how to better utilize the systems. Director Robak indicated that he had attended the annual Lemon Festival in Chula Vista.He commended Communication Officer Buelna on his work at the Festival. Director Croucher indicated that he is working on the Strategic Plan for the Fire Department.He indicated that in comparison to other public agencies in the area (fire,water and sewer),the Otay WD stands above the other agencies with regard to Strategic Plans.He thanked staff with regard to their agency to agency interaction concerning the Strategic Plan. Director Breitfelder indicated that the topic of discussion at CSDA were the initiatives on the ballot.He stated the key panelist,Senator Steve Peace,had indicated two main concerns from his point of view.He stated that he felt there was too much on the ballot,especially with regard to bonding,and that voters may vote "no"on all bond initiatives because of this.Senator Peace felt that the legislature was increasingly being seen as irrelevant as it can be easily side- stepped by the "misuse"of the initiative process.He stated that he felt that this was probably not very positive as we are very dependent on the state and country on representative government. 12 He stated that with regard to the Water Conservation Summit,a topic slated for discussion at 12:30 p.m.with regard to uniform local legislation,has become the key issue in conservation.He indicated that he felt at least three of the four breakout discussions were of great value to the District and he encouraged another director to attend along with Director Robak and himself so the District might have participation in these topics. Director Brietfelder lastly noted that he met with President Bonilla in early June 2006 and they discussed the opportunity for desalination in Mexico,the tone of board meeting communications related to organizational morale,uniform disclosure with regard to board dynamics,the desirability of internal promotions when possible and long term organizational evolution through natural attrition. He stated that he is of the opinion that one-on-one communications between directors should be held confidential.He stated that it is extremely easy for things to be taken out of context which can lead to a breakdown in communications.He stated that in this one instance he wished to make an exception and would like to share that it has always been very clear to him from his conversations with President Bonilla over the years that he cares very much about all the employees of the district and wished for everyone to have a good family life.He stated that he felt that it was good for the organization as a whole that President Bonilla be more publicly vocal about his values and opinions.He stated that this was demonstrated today through his comments and philosophy behind policies and how they are ultimately unifying for the District.He stated that he just wished to share this.President Bonilla thanked Director Breitfelder. 16.PRESIDENT'S REPORT /REQUESTS President Bonilla indicated that on August 17,2006,General Manager Watton and he met to discuss the committee agenda items for committee review in August.He indicated that General Manager Watton and he also met with Mr. Lee Acebedo,Chairman of the Jamul Indian Village,on August 17,2006.He stated they discussed issues related to sewer and water service to their casino project.He indicated that on August 23,2006,he attended the Engineering and Water Operations Committee on behalf of Director Lopez.He stated the committee received an update on the Fiscal Year-end 2006 CIP program and the San Diego Gas and Electric's energy program.He commended Chief Engineer Posada on his presentation which included enhancement suggestions from the committee.President Bonilla indicated that he met with General Manager Watton and General Counsel Calderon to discuss the agenda items for the September 2006 board meeting on August 29,2006.He stated that he also met with General Manager Watton,Mr.Hector Mares,representatives from CONAGUA,the General Manager of CESPT and individuals from Mexico City. He indicated they discussed the Rosarito Beach Desalination Project and establishing a bi-national committee between Otay,CONAGUA,CESPT and CEA.He stated that their meeting on August 30 was the first official meeting of the committee. 13 President Bonilla also congratulated Directors Breitfelder and Croucher on their "assured"re-election as they were running unopposed in this year election.He stated that he felt it was a testament to the work they have achieved in public service for the last six to eight years and that their constituents'support was highly regarded by him.He stated that he thought that this may be the first election where District incumbents were running unopposed.He stated that this indicates that the community felt that this board was working well and that there were many positive things happening at the District. President Bonilla inquired about an email he received from a customer regarding an on-line payment.He asked District Secretary Cruz if she recalled the email. District Secretary Cruz indicated that she did not recall that specific email,but the District does provide on-line payment.He indicated that he would forward it back and asked if she could please handle the response to the customer. Director Breitfelder thanked President Bonilla for his gracious comments.He indicated that he felt that Director Croucher and he running unopposed was an unfortunate turn of events.He stated that he felt it would have been good to have some tough questions asked and have a public dialogue on some of the important issues this board has addressed.He indicated that there were many positive stories that could be shared and it would have been nice to have the opportunity to provide some form of recognition to former and current employees. Director Croucher indicated that he felt that Director Breitfelder and he running unopposed was a reflection on the entire board and not just of themselves.He stated that there was no doubt that this board was diverse and he felt that it brings quality to the board.He stated that by not having an election this year it would also bring stability for the benefit to the team.He stated he looked forward to continuing to work with the board as a team. 17.ADJOURNMENT With no further business to come before the Board,President Bonilla adjourned the meeting at 5:08 p.m. President ATTEST: District Secretary 14 !iIII 11 AGENDA ITEM 6a STAFF REPORT TYPE MEETING:Regular Board SUBMITTED BY:David Charles,Public MEETING DATE: W.O./G.F.NO: November 1,2006 0210-DIV.4 NO.20.280 Chavez Water Annexation to ID 22/27 Services Manager Rod Posada,Chief of Engineeri~~~ ~-Manny Magana,Asst.GM Engineering &Operations ~ SUBJECT: APPROVED BY: (Asst.GM): APPROVED BY: (Chief) GENERAL MANAGER'S RECOMMENDATION: Approve Resolution No.4090,the annexation of the property of Miriam and Samuel Chavez to Improvement District No.22/27. COMMITTEE ACTION: Please see Attachment "A." PURPOSE- The purpose of the proposed annexation is to provide water service to a parcel owned by Mr.and Mrs.Samuel Chavez (APN 595-020-17). ANALYSIS: A written request and Petition signed by Mr.and Mrs.Chavez has been received for annexation of APN 595-020-17 into Improvement District No.22/27 for water service.The total acreage to be annexed is 0.91 acres.The property is within the sphere of Otay Water District and will be part of Improvement District No. 22/27 after the Board of Directors approves this request.The property is located at Proctor Valley Road,in the city of Chula ::::a::p::::t y di::e Diego. The property owners will be charged $10 per year for availability fees.A water annexation fee of $1,309 will be collected at the time water service will be provided. STRATEGIC GOAL: Provide water service to meet increasing customer needs. LEGAL IMPACT: ATTACHMENT A Chavez Water Annexation to ID 22/27 (APN 595-020-17) COMMITTEE ACTION: The Engineering and Water Operations Committee reviewed this item at a meeting held on October 18,2006.It was noted that this was a standard annexation and the parcel to be annexed is within the District's sphere of influence.Approval of this annexation will include the Chavez property into Improvement District 22/27.The committee supported staffs' recommendation and forwarding to the Board of Directors on the consent calendar. RESOLUTION NO.4090 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT FIXING TERMS AND CONDITIONS FOR THE ANNEXATION TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT OF THOSE LANDS DESCRIBED AS "CHAVEZ ANNEXATION"(APN 595- 020-17)AND ANNEXING SAID PROPERTY TO OTAY WATER DISTRICT IMPROVEMENT DISTRICT NO. 22/27 (WO 00210-20.282/DIVISION 4) WHEREAS,the District has received a request from a property owner that has an interest in the land described in Exhibit "A,II attached hereto,for annexation of said land to Otay Water District Improvement District No.22/27 pursuant to California Water Code Section 72670 et seq.;and WHEREAS,pursuant to Section 72680.1 of said Water Code, the Board of Directors may proceed and act thereon without notice and hearing. NOW,THEREFORE,BE IT RESOLVED as follows: 1.A description of the area proposed to be annexed is set forth on a map filed with the Secretary of the District, which map shall govern for all details as to the area proposed to be annexed. 2.The purpose of the proposed annexation is to provide water service to the territory to be annexed. 3.The Board of Directors hereby finds and determines that the area proposed to be annexed to Otay Water District Improvement District No.22/27 will be benefited thereby and that Otay Water District Improvement District No.22/27 will also be benefited and not injured by such annexation because the 1 property to be annexed will benefit from the facilities in Improvement District No.22/27 and the property already within the Improvement District will now have a larger base to finance the water improvements. 4.The Board of Directors hereby declares that the annexation of said property is subject to owner first meeting the following terms and conditions: (a)That the owner for said annexation shall pay to Otay Water District the following: (1)Standard processing fee in the amount of $628.00; (2)State Board of Equalization filing fees in the amount of $300;and (3)All other applicable local or state agency fees. (b)The property to be annexed shall be subject to taxation after annexation thereof for the purposes of the improvement district,including the payment of principal and interest on bonds and other obligations of the improvement district,authorized and outstanding at the time of annexation,the same as if the annexed property had always been a part of the improvement district. 5.The Board of Directors of the Otay Water District does hereby declare the property described in Exhibit "A"to be 2 annexed to Improvement District No.22/27 of the Otay Water Dis- trict. 6.The Board of Directors further finds and determines that there are no exchanges of property tax revenues to be made pursuant to California Revenue and Taxation Code Section 95 et seq.,as a result of such annexation. PASSED,APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a special meeting held this 1sT day of November,2006. AYES: NOES: ABSTAIN: ABSENT: President ATTEST: District Secretary 3 EXHIBIT "A" LEGAL DESCRIPTION Annexation Parcel Otay Water District I.D.22/27 LOT 3 OF HALEY'S ADDITION,IN THE COUNTY OF SAN DIEGO,STATE OF CALIFORNIA,ACCORDING TO THE MAP THEREOF NO.1286.FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,SEPTEMBER 22, 1910. CONTAINING 0.91 ACRES MORE OR LESS ~..-u ~.-<"'"c::2.::QC: RICK L.RICCI,R.C.E.32103 DATE I' Ex hibit II K II 211.70' INDICATES ANNEXATION AREA (I.D.22/27) A.P.N.No.595 -020 -17 LEGEND fZ0'/23 l6 I L-~~.~~""""'''''''''''''''"'''''''''"~LL.1'~~~L..L.L4''''''''''''''''''''''''''''''''''''''''''''"'''(~).. ,,-,PR~OC~TOR!mVAlC!lE~YRD._RD. liNe RiDCE RO. PROJECT SITE rr:~ VICINITY MAP © (NOT TO SCALE)cd] CIVIL ENGINEERING.SURVEYING,LAND PLANING 3103 FALCON ST.,SUITE G SAN DIEGO,CA.92103 TELEPHONE (619)296-3183 FAX (619)296-8180 SCALE ,.'=50' ~~~-C~-5-/7 O~ ERiCKCRICCI R.C.E.32103 DATE bed ~O o E RICCI,CIVIL ENGINEERING 7<) OTAY WATER DISTRICT LOT 3 OF HALEY'S ADDITION,IN THE COUNTY OF SAN DIEGO,STATE OF CALIFORNIA,ACCORDING TO THE MAP THEREOF No.1286,FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,SEPTEMBER 22,1910. COORDINATES 1----l----t-------------1RECORDERSF/P _ MAP No. 1----l----t-------------1RECORDINGDATE f-------------t SCALE:1"=50' 1----j----t-------------10TAY W.D.DEED No.---~--DATE:5/17/06 1----j----t-------------1IMP.DISTRICT No.DRAWN BY:T.T.NGUYEN REV.DATE DESCRIPTION WO No. AGENDA ITEM 6b TYPE MEETING:Regular Board STAFF REPORT MEETING DATE:November 1,2006 SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Asst.GM): SUBJECT: William E.Granger,Water W.O.lG.F.NO:n/a DIV.NO. Conservation Manager vvtS .I~ Rom Sarno,Chief of Administrative se~ German Alvarez,~~tant General Manager,Finance & Administration Ot/'L--- Otay School Education Programs Update all GENERAL MANAGER'S RECOMMENDATION: For the Board to receive an update on the District's School Education Program.This item is informational only and does not require Board action. COMMITTEE ACTION: See Attachment "A" PURPOSE: To provide an update on the District's School Education Programs. ANALYSIS: It was requested at the October 4th Board meeting that staff present an'update of the District's School Education Programs. The District has maintained a strong school education program since 1995,and has reached more than 96,000 students to date between its efforts as well as those by CWA staff within the District. Water Kits (K-6): The District provides kits containing grade appropriate lesson plans to teachers The kits include videos,workbooks and other resources. Kits are available on the topics of the water cycle,water conservation,recycled water,source/delivery of drinking water and water pollution.Kits are requested by individual teachers and either picked up or delivered to the school. 1 Water Conservation Garden Tours (Grades 3-6): The District funds approximately 30 school bus tours to the Water Conservation Garden each fiscal year.Otay staff meets the buses at the Garden and conducts a tour and lab session lasting approximately two hours.Students learn about the scarcity of water and the need for outdoor water conservation,our water sources,the characteristics of drought tolerant plants,take a tour of the garden and then each child plants something to take home.Tours are conducted between October and May. Splash Science Mobile Labs (Grades 4-6): The District provides 50%($255 per lab)of the funding for up to 18 Splash Labs this fiscal year.The school picks up the rest of the fee,although CWA recently amended its budget to fund a limited number of Splash Labs.The program is run through the County Office of Education and was designed by CWA.The Splash Lab involves six teaching stations:microscopes,technology,weather,water quality, storm drain pollution model and life around a pond.Up to four classes can use the lab per day. Other Educational Activities: The District also provides funding for water awareness programs, which includes water related books,videos,and school water-wise gardens.To further encourage conservation awareness,the District regularly provides water related books to school libraries and mini- grants for water related projects. Each year in conjunction with the San Diego Chapter of the California Special Districts Association (CSDA),the District provides a $1,000 scholarship to a college-bound high school senior that lives within the District.Students are required to submit an essay about the importance of Special Districts as well as write a personal essay.Students are eligible to receive the District's scholarship as well as the $1,000 scholarship offered by the local CSDA. In addition to the Splash Science Mobile Labs,CWA offers a number of programs including "Admiral Splash","Weather &Water in San Diego",water quality curriculum and testing,and a xeriscape gardening teacher workshop held at the Water Conservation Garden. Program Coordination with the Water Authority The Water Authority mails out a cover letter and its brochures (see the attached)to elementary and secondary schools throughout the county at the beginning of the school year promoting their programs for Kindergarten through 12th grade.In addition,the District mails out flyers promoting its programs,highlighting the funding 2 available for Garden bus tours and school site gardens as well as the kits and its poster contest.Depending upon program activity levels,staff will send out one or two additional mailings highlighting the availability of funding.Mailings typically occur at the beginning of the school year,again in January,and then again as needed. FISCAL IMPACT: None STRATEGIC GOAL: "Community Outreach"-Continue to promote the Water Conservation Garden for Increased Community Impact,Increase the use of educational materials on the District's website,Evaluate Effectiveness of School Education Program,and Promote CWA's Splash Labs by schools in the District LEGAL IMPACT: None Attachments: Attachment "A", FY 2007/2008 CWA Secondary Water Education pamphlet FY 2007/2008 CWA Elementary Water Education pamphlet Otay "Water Education Materials"flyer Splash Science Mobile lab schedule FY 07 School Garden Tour schedule FY 07 Otay "Learn about Water brochure-Middle and High Schools Otay historical school program activity FY 95-05. 3 ATTACHMENT A SUBJECTIPROJECT:Otay School Education Programs Update COMMITTEE ACTION: •The committee reviewed the education programs and indicated: Water kits are put together for grades K-6 covering water cycle,water conservation,recycled water, source/delivery of drinking water and water pollution. The kits are requested by individual school teachers. Staff conducts approximately 30 Water Conservation Garden Tours per year for grades 3-6.The tours cover the scarcity of water,our water resources,the need for outdoor water conservation and the characteristics of drought tolerant plants. The District funds up to 18 Splash Lab bookings per year.Thus far,the District has 3 requests for this fiscal year.The District covers half the cost of the Splash Lab (total cost $510)and the other half is paid by the school's PTA (or CWA if the school does not have a PTA).It was noted that there has been discussions of rejuvenating the lab experiments and topics presented in the Splash Lab . •Approximately 100,000 students have participated in the school education program.It was felt that this was a significant number and the committee wished staff to determine the percentage of the District's population who has participated in the program.(Staff has determined that it would be difficult to establish an accurate percentage of the district's population who have participated in the program for a number of reasons.One such reason is a child may participate in the education program in multiple school years as a school may send all of their 3rd graders to the Garden for a tour and when they are in the 5th grade another teacher may use a kit to teach about the water cycle,they may visit the Garden once again,participate in the Splash Lab or another Water Authority program.The District's records does 4 not reflect that the same child may participate in the education program several times,thus an accurate percentage cannot be calculated.) •The committee discussed the possibility of gearing a new program toward High School students.Currently,high school students'exposure to the water education program is through the Science Faire,poster contests and scholarships.The thought would be to institute a program that would provide a "science view of water."It was discussed that it was expensive to create a new program and the program would need to fit into the teaching curriculum.It was noted that generally MET creates the program and CWA augments the programs that are presented to the schools.It was suggested that the Water Conservation Manager present the idea to the next JPIC meeting or at other appropriate meetings such as the East County Educators meeting to determine interest among sister agencies in developing such a new program. 5 GARDEN TOURS 2006·2007 9/5/06 Casillas Chula Vista Elementary School Dist Chula Vista 5 32 5 X 10/5/06 Tiffani Chula Vista Elementary School Dist Chula Vista 2 43 6 X 10/10/06 Tiffani Chula Vista Elementary School Dist Chula Vista 2 42 6 X 10/12/06 Vista Grande Cajon Valley School District EI Cajon 3 45 7 WALKING 10/13/06 Avocado Cajon Valley School District EI Cajon 3 X 10/26/06 Olympic View Chula Vista Elementary School Dist Chula Vista 3 X 11/7/06 Avocado Cajon Valley School District EI Cajon 3 X 11/9/06 Jamul Primary JamullDulzura School District Jamul X 12/5/06 McMillan Chula Vista Elementary School Dist Chula Vista 3 X 12/7/06 McMillan Chula Vista Elementary School Dist Chula Vista 3 X 12/12/06 McMillan Chula Vista Elementary School Dist Chula Vista 3 X 1/23/07 Tiffany Chula Vista Elementary School Dist Chula Vista 5 X 1/25/07 Tiffany Chula Vista Elementary School Dist Chula Vista 5 X Total Tours Completed Total Tours Completed & Scheduled 5 13 5 Ota Annual School Education Pro ram FY 25 1,506 66 2,812 4,318 95 FY 26 1,618 89 3,584 5,202 96 FY 26 1,550 81 3,594 5,144 97 FY 32 1,892 132 5,218 7,110 98 FY 25 1,444 220 6,607 8,051 99 FY 32 2,053 157 6,068 8,121 00 FY 28 1,806 203 7,069 8,875 01 FY 34 2,291 193 6,108 8,399 02 FY 41 2,855 128 4,377 1 7,232 03 FY 37 2318 18 1965 1 4240 04 FY 32 1934 13 1355 1 3353 05 FY 18 1 06 30 1688 11 1400 1 3088 TOTAL 73,133 FY 01 29 2807 5 2807 FY 02 29 2807 5 2807 FY 03 123 6892 5 6892 FY 04 6892 5 6892 FY 05 30 3780 3780 FY 06 TOTAL 96,311 6 SCHEDULE -SPLASH SCIENCE MOBILE LAB -06/07 SCHOOL School District CONTACT PHONE Check Sent DATE OF LAB #LABS Avondale Elementary School La Mesa/Spring Valley Melodv Belcheer 668-5880 9/14/2006 3/7/2007 1 La Presa Elementary School La Mesa/Spring Valley Yasmin Shaddox 668-5790 11/2/2006 1 TOTAL!21 Contest Deadline April 20,2007 Melissa -Grade 3 Jamul Primary School Emily -Grade 6 Clear View Charter School For more information call: Pam Rega Water Conservation Specialist Otay Water District (619)670-2291 Category I:Grades K-3 Category 2:Grades 4-6 Prizes for the I st,2nd &3rd Place winners & Certificates for all See other side for contest rules Teachers:Please help with the screening process.Send no more than six posters per classroom.Certificates are available for all students who enter the contest.Let us know how many you will need. Grades K-6 from the OtayWater District Borrow a Learn About Water Kit Available for the following topics •Water Cycle •Water Pollution •Source/Delivery of Drinking Water •Water Conservation •Recycled Water Each Kit Includes •background Information •Standards-based lesson plans •Materials to teach each lesson •Grade appropriate plans and materials for each grade •Videos •Books •Workbooks Go on a fREE field Trip-Grades 3-6 •Tour The Water Conservation Garden •Participation in a hands-on workshop •Learn about water-wise gardening Limited funding available for transportation Water Awareness poSter Contest Encourage your students to enter our annual poster contest. •Prizes for 1st,2nd &3rd Place winners •All participants receive certificates Mini Grant 'Program •Funding up to $300 for the development of water-related projects and activities •Funding for half the cost of the Splash Science Mobile Lab Call (619)670-2291 for a grant application. To reserve a Kit or SChedule a field •~.Pam Rega ,Water Conservation Specialist Otay Water District (619)670-2291 prega@otaywater.gov visit our web site:www.otaywater.gov secondary 'water Education FREE Programs &Materials for Teachers San Diego County Water Authority - proqrams Adhere to state standards An in-service at your school site is required. To schedule,fill out the request form. .~ \~\ igolakoff@sdcwa.org sbohlander@sdcwa.org kmooney@sdcwa.org dhack@sdcwa.org www.watereducation.org 858-522-6719 858-522-6720 858-522-6721 858-522-6722 This unit is in a binder format with teacher guide,student and basic lab materials,lesson extensions,and glossary. SCIENCE CURRICULUM This engaging program is a hands-on,inquiry-based approach to the water quality issues faced by the water industry and society.The activities emphasize various topics -pH,total dissolved solids,turbidity,hardness,watershed manage- ment,cryptosporidium,public health,and MTBE. ADDITIONAL RESOURCES SanDCREEC is a county-wide resource for environmental ~duca- tion programs.www.creec.org/region9a/ I Love a Clean San Diego provides a variety of environmental education programs.619-291-0103 x3009 www.ilacsd.org Water Education Foundation 916-444-6240 Department of Water Resources 916-653-4684 www.publicaffairs.water.ca.gov/education Ivan Golakoff Susan Bohlander Kelly Mooney Deborah Hack The San Diego County Water Authority provides many programs and materials for teachers and students in San Diego County, all of which are free except where noted otherwise.For more information or to download forms,visit www.sdcwa.orgjeducation. You can also call or email Water Authority education staff: -l·GeOq....aphy of wa_t_e_r'_'__ MAP STUDY CURRICULUM.~/""'",F,eaturing California's geography,this unit contains seven student mapping activities with teacher instructions.The mapping activities build upon each other and lead to a better under- standing of the role water has played in California's development.Topics covered include:elevations, physical features,precipitation,population,industry & 'agriculture,moving and using California's water,and San Diego's geography with local water perspectives. To receive a copy,fill out the request form. sCience Fair Rwards The Water Authority offers awards of $100-$300 for outstanding water-related entries at the Greater San Diego Science and Engineering Fair.Prizes will be awarded to winners in both junior and senior divisions and presented to the students at a Water Authority board meeting. NOTE:LaMotte,the maker of our water science testing kits,is a use- ful resource for Science Fair testing equipment.Contact LaMotte at www.lamotte.com or call (800)344-3100 for their catalog and addi- tional information. I"san-Dleqo:world In Harmony" ENVIRONMENTAL CURRICULUM Learn more about San Diego's environment than you thought possible with this SOO-page curriculum.This multi-agency effort is the most comprehensive environmental curriculum ever pro- duced for this region.It earned an A rating from the State Department of Education.Through a series of multi-disciplinary integrated activities,the curriculum addresses 15 environmental issues and offers 75 hands-on activities in science,social studies, math,language arts,and history. To receive a copy,fill out the request form. "1 I J ------J ----------~'-~-_._----_.. An in-service at your school site is required. To schedule,fill out the request form. Mini-grant proqram An in-service at your school site is required. To schedule,fill out the request form. SOCIAL SCIENCE CURRICULUM Designed for government,economics,and environmental science classes,this unit consists of case studies relating to contemporary water issues.Through critical thinking and role-playing activities';"'_"'~!l students will investigate the role of various agencies and special interest groups.The teacher's guide includes:lesson plans,a copy of the student materials,a video,a California's Water Resources map,and accompanying worksheets and material for each case study. The Water Authority offers mini-grants of up to $300 to teachers for the development of water-related projects,activities,Xeriscape gardens,or field trips.Grants are accepted and processed throughout the year. Download the application form at www.sdcwa.orgfeducation, or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org. "water politics" The program features a two-part video;a set of multi-disciplinary activities;a set of career profiles;and a CD containing video inter- views,a tour of work areas,the career profiles,and an interactive "valve"game. SCHOOL-TO-CAREER CURRICULUM Increase student awareness of career tracks in the water industry with this problem-solving and job-specific program.Career centers and classrooms will find it a valuable asset. "water worKS" lJ-----------------·---, "water Times" This program meets the state science framework for ecology,biology,chem- istry,and geology.It also meets investi- gation and experimentation require- ments. Each teacher receives a set of GIS water- shed maps,a teacher's manual,a stu- dent workbook,and a San Diego water history book.The water-testing kit can be checked out for use after attending the workshop. Workshop dates:October 16,2006 and January 22,2007. Workshops held at San Diego Wild Animal Park and Mission Trails Regional Park. Download the registration form at www.sdcwa.orgfeducation, or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org. EXTRA-EXTRA!READ ALL ABOUT IT! This curriculum is a water-education newspaper designed for sixth-grade students who live in Southern California.The material is interdisciplinary -integrating science,social studies,language arts and math -and correlates to the California content stan- dards for sixth grade.It's engaging,challenging,and relevant to the lives of sixth graders;and creates an awareness and steward- ship of water in an exciting way.Includes a teacher's guide and set of consumable student newspapers. TEACHER WORKSHOP This hands-on program centers around a water-testing kit containing equipment and supplies for the following tests. temperature,pH,DO,BOD,nitrates,turbidity,TDS,hardness, and microbiology. ["""el:J1.cna wa er ouahtyTestlnpro ram"----'".-'".-.,,~....----III.: .......-;:==-------",,,-,Q,,,,,To receive a teacher's guide an~a class set of newspapers, fill out the request form. xerlscape Gardening Download the registration form at www.sdcwa.org/education,or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org Workshop dates are:10/25/06,11/15/06,1/17/07, 2/21/07,3/21/07,4/18/07,and 5/16/07. youth Merit patch program -----l _J The patch program is designed for youth groups ages 6-15 such ~ as Boy Scouts,Girl Scouts,and Camp Fire Boys and Girls.The rA program consists of requirements designed to teach children about ~;.-::.=- their water supply and conservation.Upon completion,each group ~on~ member will receive an embroidered patch. For more information,visit www.sdcwa.org/education or contact Susan Bohlander at (858)522-6720 or sbohlander@sdcwa.org There is an entrance fee to the Fleet Science Center. For hours and admission fee information,call (619)238-1233. REUBEN H.FLEET SCIENCE CENTER EXHIBIT This interactive model demonstrates where our water comes from and how it is transported,treated,and distributed.Compare water usage in a traditional house with one that has been retrofitted with conservation fixtures. The Water Authority will pay for a Participants receive a binder with curriculum materials,substitute so you can attend this plant identification information,children's gardening workshop. gUide,and ideas about starting a garden at your school. TEACHER WORKSHOP This five-hour workshop will present the seven basic principles of Xeriscape gardening and includes an instructional tour of the Water Conservation Garden at Cuyamaca College in EI Cajon.This innovative, four-acre garden features numerous plants and displays demonstrating design,maintenance,irrigation, and edible plants. No How many students?_ Best times to call _ Water Politics In-service/curriculum (9-12th grade) _San Diego World in Harmony Curriculum (7-12th grade) How many c1asses?_ _______Last Name _ _________Email _ Water Works In-service/curriculum (6-12th grade) Water Times Curriculum (6th grade) _Geography of Water Curriculum (6-Sth grade) Subject area(s)Self-contained?Yes CURRICULUM NOT REQUIRING AN IN-SERVICE Please mark the materials that interest you.Materials will be mailed to you. OTHER PROGRAMS For workshops and other programs not listed above,check the program descrip- tion in the brochure for contact information. _Water Quality The Qualities and Science of Water In-service/curriculum (7-12th grade) Grade level _ School District _ Phone # (__)ext ------_._----<- IN-SERVICES ~Please check with others in your grade level and select one teacher to ~coordinate the in-service you are requesting.Mark only the programsabelowforwhichyouhavebeenselectedasthecoordinator.If someone else is selected as the coordinator for one of these programs,that person should send in a request form.Water Authority staff will contact the coordinator(s)to sched- ule the program(s).TEACHERS MUST ATIEND THE IN-SERVICE TO RECEIVE THE MATERIALS. Q)o Mr.I!...Q).r.o Mrs.First Name.....~OMs.u o Miss Date 4677 Overland Ave.,San Diego,CA 92123 •PH 858-522-6700 FAX 855-268-7841 619-420-1413 760-744-0460 760-749-1600 760-597-3100 760-742-3704 760-725-1061 858-668-4401 760-728-1178 760-789-1330 760-745-5522 619-533-7555 760-633-2840 858-756-2424 619-420-1413 760-435-5800 760-753-6466 619-670-2777 619-258-4600 760-438-2722 858-755-3294 760-839-4657 760-728-1125 619-466-0585 o j tty w t e Rqenc Education program descriptions,workshop flyers,and other forms are available online at www.sdcwa.orgfeducation. Carlsbad MWD City of Del Mar City of Escondido Fallbrook Public Utility District Helix Water District City of National City (Sweetwater Authority) City of Oceanside Olivenhain MWD Otay Water District Padre Dam MWD Camp Pendleton Marine Corps Base City of Poway RainbowMWD Ramona MWD Rincon del Diablo MWD City of San Diego San Dieguito Water District Santa Fe Irrigation District South Bay Irrigation District (Sweetwater Authority) Vallecitos Water District Valley Center MWD Vista Irrigation District Yuima MWD The Water Authority is a public agency serving the San Diego region as a wholesale supplier of water.The Water Authority works through its 23 member agencies to provide a safe,reliable water supply to support the region's $150 billion economy and the quality of life of more than 3 million residents. programs Adhere to state standards Element1ary water Education San Diego County Water Authority 2006 2007 FREE Programs &Materials for Teachers Science Social Science Language Arts lIlIAIl Rbout water''' Department of Water Resources 916-653-4684 www.publicaffairs.water.ca.gov/education igolakoff@sdcwa.org sbohlander@sdcwa.org kmooney@sdcwa.org dhack@sdcwa.org www.watereduc~tion.org 858-522-6719 858-522-6720 858-522-6721 858-522-6722 Water Education Foundation 916-444-6240 INTERDISCIPLINARY CURRICULUM This primary-grade teacher's guide contains 26 water-related activities and science experiments.The activities are designed to integrate math,science,art,music,and language arts and to « provide an understanding of California's water supply and water conservation issues.Major topics covered are water quality,water distribution,water conservation,and the water cycle. A 30-minute in-service at your school site is required. To schedule,fill out the request form at the back of this brochure. I Love a Clean San Diego provides a variety of environmental education programs.619-291-0103 x3009 www.ilacsd.org ADDITIONAL RESOURCES SanDCREEC is a county-wide resource for environmental educa- tion programs.www.creec.org/region9a/, Ivan Golakoff Susan Bohlander Kelly Mooney Deborah Hack The San Diego County Water Authority provides many programs and materials for teachers and students in San Diego County, all of which are free except where noted otherwise.For more information or to download forms,visit www.sdcwa.orgjeducation. You can also call or email Water Authority education staff: ~~water sCience In a BOX" SCIENCE KITS Supplement your science curriculum with these three grade-specific kits.Each kit contains hands-on experiments and demon- strations that correlate to the state science standards.Everything you need except common classroom supplies is in the box, including teacher-tested instructions,equip- ment,and student supplies!The kits are loaned out to schools for short-or long-term use.See the descriptions below for each kit. First Grade The first-grade kit includes a mix of physical,life,and earth science lessons.Weather,states of water, and special features of plants and animals are some of the topics explored.Includes a supplemental lesson on learning how to use a thermometer. A 45-minute in-service at your school site is required. To schedule,fill out the request form at the back of this brochure. Second Grade The second-grade kit includes activities in the physical and earth sciences.The seven lessons involve three main themes:moving water by gravity and/or machines,water as a resource,and properties of various soil types. Third Grade The five lessons in this kit focus on life science. Students learn about diverse groups of living creatures and adaptations that help them survive. Each school will automatically receive one copy of each video. If your school has not received a copy by January of 2007, contact Ivan Golakoff at igolakoff@sdcwa.org. HELP History video series This new video series will wet your students'thirst for knowledge about local and state history: San Diego County:History and Growth -Third Grade In this short video,historical photos are woven into a story designed to motivate third grade students to learn more about the communities in which they live.Students learn that the geography of the region and the contributions of people of all races have helped to shape San Diego's unique history. California:A Changing State -Fourth Grade This video series follows the adventures of five students as they explore the history and geography of California. Their stories are told in five short videos,each addressing a different era.The videos also show how water played a key role in the development of California. A MUSICAL SCIENCE SHOW ABOUT WATER What happens when you combine science,music,and comedy?You get "H20,Where Do You Go?"- The Water Authority's assembly program produced by "Razzle Bam Boom."The high-energy duo of Wow x 2 will have your students singing and laughing while learning about water in San Diego County. Topics include the importance of water,how we get most o(our water from far away places,and why everyone should care about conserving water.Length of the program is about 40 minutes. To learn more or to schedule an assembly,call Razzle Bam Boom at (800)909-0024 or email kim@razzlebamboom.com. Book early for the best selection of dates. "Admiral splash" A 30-minute in-service at your school site is required. To schedule,fill out the request form at the back of this brochure. Activities include making a rain stick,creating a well,tracking Lewis and Clark's Expedition,constructing a water wheel,and more.The program comes complete with a teacher's guide and a set of 35 consumable student booklets. SOCIAL STUDIES CURRICULUM Supplement your fifth-grade social studies curriculum with "Water Ways."This highly colorful,activity-oriented unit examines the role of water in the history of the United States during three historical periods:Pre-Columbian,Colonial,and the Westward Movement. A 30-minute in-service at your school site is required. To schedule,fill out the request form at the back of this brochure. "water ways" SOCIAL STUDIES/SCIENCE CURRICULUM Guided by Admiral Splash,students learn about California's water systems,where our water comes from,how it is distributed and treated,and how to conserve.This kit contains a teacher's guide, a video,a wall map of California's water system,and a class set of workbooks,tests,and home information leaflets. "Traveling Library" Fourth Grade: This presentation traces California history from before the mission period to the present,with an emphasis on water issues and the devel- opment of water transportation and storage structures.A dis- cussion of immigration during the Gold Rush is enhanced by the rendition of a Chinese story.Students receive a Chinese tangram puzzle. Teachers receive a list of tangram math activities. Third Grade: Students learn how the Kumeyaay of the past dealt with San Diego County's semiarid climate and how we deal with it today.A Native American drought story and stick-dice game culminate the presentation. Due to the popularity of this program,we recommend reserving early.Only the librarian may reserve this program. To schedule,ask your school librarian to contact Kelly Mooney at (858)522-6721 or kmooney@sdcwa.org,or download the registration form at www.sdcwa.orgfeducation. LIBRARY DISPLAY AND CLASSROOM PRESENTATIONS This program focuses on the librarian as a resource for students and teachers by providing participating schools with: •Three weeks to enjoy a free- standing library display consisting of three interactive panels and a selection of over 100 books, including Spanish titles.Reading and interest level of the books range from kindergarten through sixth grade. •Seven free books for the school's permanent library collection. •Third-and fourth-grade classroom presentations that adhere to the state frameworks and include storytelling and a hands-on activity. "Geoqraphy of water" To receive a copy,fill out the request form at the back of this brochure. All fifth-grade presentations at your school must be scheduled for the same date. Exceptions may be made for schools with more than one track or with more fifth-grade classes than can be visited in one day.Fill out the request form at the back of this brochure to schedule presentations for your school. These are some of the questions that will be answered during the Water Authority's fifth-grade classroom presentation.This 60-minute presenta- tion adheres to the fifth-grade science standards and utilizes lecture,visuals,scientific demonstra- tions,and hands-on activities. Teachers are given class sets of a 16-page booklet, "The Story of Drinking Water." MAP STUDY CURRICULUM Featuring California's geography,this unit contains seven student mapping activities with teacher instructions.The mapping activities build upon each other and lead to a better under- standing of the role water has played in California's development.Topics covered include:elevations,physical features,precipitation, population,industry &agriculture, moving and using California's water,and San Diego's geography with local water perspectives. CLASSROOM PRESENTATION Why doesn't San Diego get more rain?What types of weather events have an impact on our climate?Do the ocean and the water cycle playa part?Where does our water come from? Why is it important to conserve water? "weather Et water In san cleQo" .. .. "splash"sCience Mobile Lab A FIELD TRIP THAT COMES TO YOUR SCHOOL! The County Office of Education, in collaboration with the San Diego County Water Authority,offers this award-winning program.Geared toward grades four through six, the curriculum concentrates on six teaching stations: •Microscopes •Technology •Weather •Water Quality •Storm Drain Pollution Model •Life Around a Pond Delivered in an innovative manner,the curriculum encompasses multimedia,computer analysis,hands-on experimentation,observa- tion,and group problem solving.The lab can accommodate up to four classes per day. There is a fee for this program.Check with your local water agency for possible assistance with funding. For scheduling or more information,call the San Diego County OffiCe of Education at (858)292-3696. youth Merit patch program The patch program is designed for youth groups ages 6-15 such as Boy Scouts,Girl Scouts,and Camp Fire Boys and Girls.The program consists of requirements designed to teach children about their water supply and conservation. Upon completion,each group member will receive an embroidered patch. ram" TEACHER WORKSHOP This hands-on program centers around a water-testing kit containing equipment and supplies for the following tests: temperature,pH,DO,BOD,nitrates,turbidity,TDS,hardness, and microbiology. Each teacher receives a set of GIS watershed maps,a teacher's manual,a student workbook,and a San Diego water history book.The water-testing kit can be checked out for use after attending the workshop. This program meets the state science framework for ecology,biology,chem- istry,and geology.It also meets investi- gation and experimentation require- ments. Workshop dates:October 16,2006 and January 22,2007. Workshops held at San Diego Wild Animal Park and Mission Trails Regional Park. Download the registration form at www.sdcwa.org/educa- tion,or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org. ttwater TimeS" EXTRA-EXTRA!READ ALL ABOUT IT! This curriculum is a water-education newspaper designed for sixth-grade students who live in Southern California.The mate- rial is interdisciplinary -integrating science,social studies,lan- guage arts and math -and correlates to the California content standards for sixth grade.It's engaging,challenging,and rele- vant to the lives of sixth graders;and creates an awareness and stewardship of water in an exciting way.Includes a teacher's gUide and set of consumable student newspapers. To receive a teacher's guide and a class set of newspapers, fill out the request form at the back of this brochure. xerlscape Gardening Mini-grant program Participants receive a binder with curriculum materials,plant identifi- cation information,children's gar- dening guide,and ideas about starting a garden at your school. TEACHER WORKSHOP This five-hour workshop will pres- ent the seven basic principles of Xeriscape gardening and includes an instructional tour of the Water Conservation Garden at Cuyamaca College in EI Cajon.This innova- tive,four-acre garden features numerous plants and displays _demonstrating design,mainte- nance,irrigation,and edible plants. The Water Authority will pay for a substitute so you can attend this workshop. Download the application form at www.sdcwa.org/education,or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org. The Water Authority offers mini-grants of up to $300 to teachers for the development of water-related projects,activities,Xeriscape gar- dens,or field trips.Grants are accepted and processed throughout the year. Workshop dates are: 10/25/06,11/15/06,1/17/07,2/21/07,3/21/07,4/18/07, and 5/16/07. Download the registration form at www.sdcwa.org/education,or contact Ivan Golakoff at (858)522-6719 or igolakoff@sdcwa.org. <. .. Please print using blue or black ink. School District _ No How many students?_ Best times to call _ _Water Science in a Box,1st Grade In-service/science kit (1st grade) _Water Science in a Box,2nd Grade In-service/science kit (2nd grade) _Water Science in a Box,3rd Grade In-service/science kit (3rd grade) How many c1asses?_ Date Email _ First Name,Last Name _ _Weather and Water in San Diego Classroom Presentation (5th grade) _Water Ways In-service/curriculum (5th grade) _Admiral Splash In-service/curriculum (4-5th grade) All About Water In-service/curriculum (K-3rd grade) Subject area(s)Self-contained?Yes Grade level _ Phone # (__)ext o Mr.o Mrs. OMs.o Miss OTHER PROGRAMS For workshops and other programs not listed above,check the program descrip- tion in the brochure for contact information. MATERIALS NOT REQUIRING AN IN-SERVICE Please mark the materials that interest you.Materials will be mailed to you. Water Times _Geography of Water Curriculum (6th grade)Curriculum (4-6th grade) IN-SERVICES AND CLASSROOM PRESENTATIONS Please check with others in your grade level and select one teacher to coordinate the in-service or presentation you are requesting.Mark only the programs below for which you have been selected as the coordinator.If someone else is selected as the coordinator for one of these programs,that per- son should send in a request form.Water Authority staff will contact the coordi- ~nator(s)to schedule the program(s).TEACHERS MUST ATIEND THE IN-SERVICE .r::TO RECEIVE THE MATERIALS....., ::JU 4677 Overland Ave.,San Diego,CA 92123 •PH 858-522-6700 FAX 855-268-7841 Education program descriptions,workshop flyers,and other forms are available online at www.sdcwa.orgfeducation. san oleqo county water Ruthorlty Member Rqencles: 619-420-1413 760-744-0460 760-749-1600 760-597-3100 760-742-3704 760-725-1061 858-668-4401 760-728-1178 760-789-1330 760-745-5522 619-533-7555 760-633-2840 858-756-2424 760-438-2722 858-755-3294 760-839-4657 760-728-1125 619-466-0585 619-420-1413 760-435-5800 760-753-6466 619-670-2777 619-258-4600 Carlsbad MWD City of Del Mar City of Escondido Fallbrook Public Utility District Helix Water District City of National City (Sweetwater Authority) City of Oceanside Olivenhain MWD Otay Water District Padre Dam MWD Camp Pendleton Marine Corps Base City of Poway RainbowMWD Ramona MWD Rincon del Diablo MWD City of San Diego San Dieguito Water District Santa Fe Irrigation District South Bay Irrigation District (Sweetwater Authority) Vallecitos Water District Valley Center MWD Vista Irrigation District YuimaMWD The Water Authority is a public agency serving the San Diego region as a wholesale supplier of water.The Water Authority works through its 23 member agencies to provide a safe,reliable water supply to support the region's $150 billion economy and the quality of life of more than 3 million residents. Wate Water education materia for Middle &High Sc from the Otay Water Dist For more education information visit our web site at Water Call for Information and Reservations: Pam Rega Water Conservation Specialist Otay Water District (619)670-2291 prega@otaywater.gov ••Together , we can educate our youth to use San Diego's water supply wisely.~," Otay Water District brings you a variety of water related activities to supplement your classroom programs.These materials,which meet State Content Standards,are designed for science,economics, government and environmental science classes. aSanDiego, is very dependent upon imported water. Our average rainfall,which is about 10 inches,does not provide enough water for our local needs.As much as A 90%of the water we use W is imported from the Colorado River and Northern California.To maintain • our quality of life and ensure our 4..~ future water supply,we need to • educate our youth to use this limited 6 resource as efficiently as possible.o Learn About Water Kits "FreeClassroom Presentations Education Ed"··.1foruca To THE WATER CONSERVATION GARDEN Schedule a field trip to the 4.2 acre Water Conservation Garden located at Cuyamaca College.Tours can be designed to correlate with the objectives of your class. Funding available for a limited number of buses. Have an expert come and speak to your class on water-related topics.Possible topics include,but are not limited to: ~Current Water Issues ~Water Quality ~Water Conservation ~Careers in the Water Industry Presentations will be designed to correlate with the objectives of your class BOOKS AND VIDEOS: a library of water-related videos,bl and information guides. MAPS: depicting California's water systerr San Diego County Watersheds. PROGRAM FUNDING: up to $300 is offered to teachers f{ development of water-related projE activities Call for an application. PROJECT WET EDUCATOR WOF held annually,includes a 500+page ( WATERWISE GARDENING TEACHER WORKSHOPS: held at The Water Conservation Gal and provides curriculum ideas and materials.San Diego County Water Authority will pay for release time f teachers who attend workshops. IN-SERVICE: is available for educators wishing tl Metropolitan or County Water Auth, developed materials and programs. REGIONAL WATER QUALITY TESTING PROGRAM: a kit containing all the materials fo hands-on field water quality testin~ o The kit can be checked out upon completion of a one-day workshl ,San Diego County Water Authorit pay for release time for teachers attend workshops. Other ResourcesCSDASCHOLARSHIP: (California Special District's Association)A.. Several $1,000 scholarships are available • for high school seniors. OTAY WATER DISTRICT SCHOLARSHIP: A $1,000 scholarship for high school seniors., WATER IS LIFE POSTER CONTEST: Two exciting categories:toComputer-generated art {It o Multi-media artwork For Students: Free Field Trip ~WATER POLITICS: designed for government,economics and environmental science classes.Consists of case studies relating to contemporary water issues. o WATER WORKS: SCHOOL-TO-CAREER EDUCATION PROGRAM: designed to increase student awareness of career tracks in the water industry ~WATER QUALITY: THE QUALITIES AND SCIENCE OF WATER: an inquiry-based approach to the water quality issues faced by the water industry and society., ~PROJECT WATER SCIENCE:Ii a study of water chemistry and how water relates to the environment. ~CALIFORNIA'S WATER PROBLEMS: presents scenarios that give students first-hand experience at solving real-life problems involving the management of California's water. ~CONSERVE WATER EDUCATOR'S GUIDE: a collection of activities and case studies designed to teach students how to conserve water ~SAN DIEGO:WORLD IN HARMONY: an environmental curriculum,developed for San Diego. ~GROUNDWATER EDUCATION: a study of groundwater and the prevention,reduction and elimination of groundwater pollution. ~GEOGRAPHY OF WATER:At.. a map study featuring California's geography.• Each kit"lnciudes the following Programs: STAFF REPORT AGENDA ITEM 6c TYPE MEETING:Communications Committee SUBMITTED BY:Armando Buelna,~ Communications Officer MEETING DATE: W.O.lG.F.NO: 10/18/06 DIV.NO.All APPROVED BY: SUBJECT:2006 Customer Survey -Draft Survey Questionnaires GENERAL MANAGER'S RECOMMENDATION: That the Communications questionnaires to be used in Awareness Surveys. PURPOSE: Committee review the draft the 2006 Customer Satisfaction and To provide the Communications Committee review the draft questionnaires to be used Satisfaction and Awareness Surveys. BACKGROUND: the opportunity to in the .2006 Customer Attached are draft questionnaires developed by Rea &Parker Research for consideration by the Otay Water District for use in the General and Call Center surveys. In the General survey,300 customers will be selected at random from individuals residing within the district's service area. These respondents will be asked to respond to questions about their overall perception of service,rates,as well as their attitudes toward sewer service and recycled water.The survey will yield a margin of error of +/-5.7%at 95%confidence.This survey measures changes from the 2005 survey,and establishes new baselines for material not covered in the previous study. In Call Center survey,respondents will be selected from customers who have contacted the district within the last 6 months.Those individuals will be asked about specific Call Center interaction such as courtesy,knowledge,and helpfulness of Call Center personnel.This survey of 200 customers will yield a margin of error of +/-6 89%at 95%confidence.This survey is meant to assist Finance -Customer Service develop meaningful metrics for tracking Call Center interaction with customers. The survey's are currently being reviewed by staff.Comments received will be incorporated into the two documents,which will also be translated to Spanish.The surveys will be pre-tested prior to actual survey being conducted. FISCAL IMPACT: The cost of conducting the survey proj ects will total $27,500. Funding for the survey's is included in the General Manager's Outside Services account (GL 5261). STRATEGIC GOAL: This Plan project is consistent with the following 2006 Strategic Goals: 1.A.l Implement a standardized Potable and Recycled Water Customer Survey. 1.A.3 Expand a Quality control/Audit program to ensure quality customer service LEGAL IMPACT: None. General Manager Attached Otay Water District Survey 2006-General -Proposed Draft Otay Water District Survey -Customer Service -Proposed Draft ATTACHMENT A SUBJECT/PROJECT:2006 Customer Surveys -Draft Questionnaires COMMITTEE ACTION: The Communications Committee reviewed this item at a meeting held on October 18,2006.The following comments were made: •It was indicated that two surveys would be administered: A Customer Survey for those customers who have had contact with the District's Call Center within the last six months.200 customers would be surveyed and it is expected that the survey would be approximately 12 minutes in length A General Survey of 300 randomly selected individuals residing within the District's service area.The survey would be approximately 13-16 minutes in length •The committee suggested the following changes to the surveys: Question 14 of the General Survey:Change "recycled water"in the first sentence to "sewer water."The sentence should read,"These next questions are about sewer water,which is wastewater that has been treated and is used for a variety of purposes other than drinking water."It was felt that the customer may envision "grey water"instead of "sewer water" and the survey would not get accurate results because of the misunderstanding. Question 15 of the General Survey:Improve question to better gauge respondents "lack of"or "confidence"in a Mexico plant meeting United States standards. Question 13 of the Customer Survey:Suggesteq removing this question,"Have you utilized the Otay Water District's off-site payment center?" Question 15 of the Customer Survey:The committee wished to understand what information the District is trying to gain by asking this question,"No matter how you presently pay your bill,how would you prefer to pay your bill most of the time?"Did the District wish to know what payment options the customer is aware of or is the District trying to ascertain what payment method is preferred?If the District is interested in what payment option is truly preferred,then it was suggested that the available options be read to the customer. •The committee wished to also determine how it would be identified that a respondent was an OWD sewer customer.It was requested that staff inquire with Dr.Parker how a sampling of the District's sewer customers would be pulled to get accurate statistical results. •The committee also discussed that since the least expensive payment option was "automatic bank deductions,"that a question be added indicating that if the District provided an incentive to customers who pay their bill through automat~c bank deductions, would they be willing to utilize this payment method as their primary method. •There was also interest in ascertaining information on how many customers utilize the Interactive Voice Response (IVR)system to obtain their bill balance. •It was noted that the surveys would be administered either before the Thanksgiving Day Holiday or the first week of December. Upon completion of the discussion,the Committee supported staff's recommendation and forwarding to the Board of Directors. Otay Water District Survey Customer Service 2006 Proposed Draft INT.Hello,my name is .I'm calling on behalf of the Otay Water District.We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions.[IF NEEDED:] Are you at least 18 years of age or older?[IF 18+HOUSEHOLDER NOT AVAILABLE NOW,ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER.[VERSION OF INTERVIEW:]1 -VERSION A 2 -VERSION B* *=RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC.Let me assure you that no names or addresses are associated with the telephone numbers,and all of your responses are completely anonymous.The questions take about ten minutes.To ensure that my work is done honestly and correctly,this call may be monitored.Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:]My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing ansWers in any way. TOP.[ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:]This project is sponsored by the Otay Water District,and it's about some issues related to your household water supply.[IF SPONSOR INFORMATION GIVEN TO RESPONDENT,"TOPIC"=1] SEX.[RECORD GENDER OF RESPONDENT:] 1 -MALE 2 -FEMALE LP.[IF INDICATED BY ACCENT:]Would you prefer that we speak in... 1 -English or 2 -Spanish? 01.Have you or anyone in your household or business called the Otay Water District for service or other help during the past 12 months? 1 -YES 2 -NO -THANK AND TERMINATE INTERVIEW 9 -OK/REF -THANK AND TERMINATE INTERVIEW Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 01 a-Please indicate the type of customer you are 1-Residential 2-Business 3-Agriculture 4-0ther,SPECIFY _ 01 b.[IF YES:]Was the main purpose of your last call ... 1 - a repair issue, 2 - a billing issue,or ------------>GO TO Q2 3 -another issue?--->GO TO Q2 9 -OK/REF ------------>GO TO Q3 01c.[IF REPAIR ISSUE:]What type of repair did you call about?Was it... 1 - a pipeline break, 2 - a problem with supply to your home, 3-a suspected leak 4 -another problem?[SPECIFY:]_ 9 -OK/REF 01 d.Oid you make any other calls to customer service in the past 12 months that were not repair related? 1-YES 2-NO-GO TO Q3 3--0K -GO TO Q3 02.What was the reason for that customer service call?[DO NOT VOLUNTEER] 1-Did not understand bill-[IF Qlb =l--GO TO Q3-IF Qlb=2 or 3,GO TO Q2a] 2-Thought I was charged too much for the amount of water I used-- [IF Ql b =l--GO TO Q3-IF Ql b=2 or 3,GO TO Q2a] 3-Thought I used less water than bill indicated/Meter misread--[IF Ql b =l--GO TO Q3-IF Ql b=2 or 3,GO TO Q2a] 4---Why different amount from same month last year--·[IF Ql b =l--GO TO Q3-IF Qlb=2 or 3,GO TO Q2a] 5-0uestion about message box on bill--[IF Qlb =l--GO TO Q3-IF Qlb=2 or 3,GO TO Q2a] 6-Address change-[IF Ql b =l--GO TO Q3-IF Ql b=2 or 3,GO TO Q2a] Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 2 7---Start service-[IF 01b =1--GO TO 03-IF Q1b=2 or 3,GO TO 02a] 8---Stop Service-[IF 01b =1--GO TO Q3-IF Q1 b=2 or 3,GO TO Q2a] 9-Reconnect Service after shutoff--[IF Q1b =1--GO TO 03-IF Q1 b=2 or 3,GO TO 02a] 15-0ther?SPECIFY -[IF 01b =1--GO TO 03-IF 01 b=2 or 3,GO TO Q2a] 20-DKIREF [Go to 03] Q2a.[IF 02 =1-15]Did you make any other calls to customer service in the past 12 months? 1-YES 2-NO-GO TO 03 3--DK -GO TO 03 Q2b.What was the reason for that customer service call?[DO NOT VOLUNTEER] 1-Did not understand bill 2-Thought I was charged too much for the amount of water I used 3-Thought I used less water than bill indicated/Meter misread 4---Why different amount from same month last year 5-Question about message box on bill 6-Address change 7---Start service 8---Stop Service 9-Reconnect Service after shutoff 10--a pipeline break, 11 - a problem with supply to your home 15-0ther?SPECIFY _ 20-DKIREF OtayWater District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 3 03.How satisfied or dissatisfied were you with the service you received as far as.... a.your ability to reach a service representative?Were you...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF b.the courtesy of the service representative?Were you...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF c.the professionalism of the service representative?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF d.the knowledge and expertise of your service representative?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF e.getting your problem resolved?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 04.Overall,how would you rate the quality of service that you received?Would you say 1 -excellent, 2 -good, 3 -fair 4 -poor 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 4 05.With regard to the problem or question you called about,how many calls did it take to get your issue resolved? Q5a.[IF QS >1-0THERWISE,GO TO Q6]Was your question or problem ultimately resolved to your satisfaction? 1-YES 2-NO 3-0K/REF 06.Oid your call require a field visit to your property? 1-YES 2-NO -------------[GO TO 012] 3-0K/REF------------------[GO TO Q12] 07.[IF 06 =1]What did the field representative do? 08.How satisfied were you with the field service outcome?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 09.How satisfied were you with the time required to come to your property to provide the field service?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 010.How satisfied were you with the amount of time the field service representative needed at your property?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 011.Please rate your overall satisfaction with the field service you received. 1 -excellent, 2 -good, 3 -fair,or 4 -poor? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 5 012.Have you also contacted the Otay Water District by any of the following methods? Yes No OK/REF 1.e-mail 1 [12a]2 9 2.mailed letter 1 [12b]2 9 3.in person 1 [12c]2 9 Q12a-c How satisfied were you with the service you received from those contacts? 12a 12b 12c 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 013.Have you utilized the Otay Water District's off-site payment center? 1-YES ----------[GO TO Q14] 2-NO 3-DK/REF-----------[GO TO Q14] Q13a.[IF Q13=2]How likely would you be to use an off-site payment center if one were located within one mile of your property? 1-Very Likely 2-Somewhat Likely 3-Somewhat Unlikely 4-Very Unlikely 9---DK/REF 014.How do you pay your water bill most months? 1-Send check by mail 2-Automatic bank deduction 3-Credit card over the telephone 4-ln person at the Otay Water District office 5-ln person at payment center 6-0n-line (Internet) 015.No matter how you presently pay your bill,how would you prefer to pay your bill most of the time? 1-Send check by mail---------GO TO Q16 2-Automatic bank deduction---------GO TO Q16 3-Credit card over the telephone---------GO TO Q16 4-ln person at the Otay Water District office 5-ln person at payment center 6-0n-line (Internet)---------GO TO Q16 Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 6 015a.[IF Q15 =4 or 5]Why do you prefer to pay in person?DO NOT VOLUNTEER 1-save postage 2-get receipt 3-1 usually pay at the last minute 4-1 enjoy the personal contact/getting out of the house 9-0ther-SPECIFY _ Q16.In the past 6 months,have you used the Otay Water District website to obtain information or other service from the Otay Water District? 1-YES 2-NO-----------GO TO Q17 3-DK/REF-----------GO TO Q17 016a.[IF Q16=1]How satisfied were you with the web service you received? Were you* 1 -very satisfied, 2 ~somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -DK/REF 017.The Otay Water District has an Interactive Voice Response feature in their telephone system.This feature provides the customer with account information, total amount due,and last payment received.Have you used this feature? 1-YES 2-NO-----------GO TO Q18 3-DK/REF-----------GO TO Q18 017a.[IF Q17 =1]Did you find this feature to be useful? 1-YES 2-NO 3-DK/REF Q17b.How easy was the system to use? 1-Veryeasy 2-Somewhat easy 3-Somewhat difficult 4-Very difficult 9-DK/REF~ Q17c.When you last called the Otay Water District for customer service, were you able to resolve your question or problem using the automated system only? 1-YES 2-NO 3-DK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 7 017d.Are there any other features that you would like to have offered by the Interactive Voice Response system? 1-Yes 2-No ---[GO TO Q18] 3-DK/REF ---[GO TO Q18] 015e.[IF Q17c =1]What feature or features would you like the Automated Voice Response system to offer?[RECORD UP TO 2] 018.Regarding your monthly billing,How satisfied are you with the accuracy of your water bill? 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 019.How satisfied are you with the ease of understanding your water bill? 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 020.How confident are you in the accuracy of your monthly meter reading? 1 -very confident, 2 -somewhat confident, 3 -not very confident,or 4 -not at all confident? 9 -NOT SURE/REF 021.Do you read the messages in the message box on your monthly bill? 1-YES 2-NO 3---010 NOT EVEN KNOW MESSAGES WERE THERE [VOLUNTEERED] 022.What changes,if any,would you suggest to the Otay Water District that you think could improve the convenience of your monthly bill? O=No changes 023.In comparison to other companies that bill you monthly,such as electricity,cable tv,or others,how would you rate your overall customer experience with us on a scale of 1-5,where 5 means that the Otay Water District is the best of these companies and 1 means that the Otay Water District is the worst. Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 8 In closing,these questions are for comparison purposes only. CUST.How long have you been a customer of the Otay Water District? _____YEARS PPH.How many persons,including yourself,live in your household? 99 -DK/REF TEN.Is your residence owned by someone in your household,or is it rented? 1-0WN 2 -RENT/OTHER STATUS 9 -DK/REF EDU.What is the highest grade or year of school that you have completed and received credit for... 1 -high school or less, 2 -at least one year of college,trade or vocational school, 3 -graduated college with a bachelor's degree,or 4 -at least one year of graduate work beyond a bachelor's degree? 9 -DK/REF AGE.Please tell me when I mention the category that contains your age... 1 -18 to 24, 2 -25 to 34, 3 -35 to 44, 4 -45 to 54, 5 -55 to 64,or 6 -65 or over? 9 -DK/REF ETH.Which of the following best describes your ethnic or racial background... 1 -white,not of Hispanic origin; 2 -black,not of Hispanic origin; 3 -Hispanic or Latino; 4 -Asian or Pacific Islander; 5 -Native American;or 6 -another ethnic group?[SPECIFY:]_ 9 -DK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 9 INC.Now,we don't want to know your exact income,but just roughly,could you tell me if your annual household income before taxes is... 1 -under $25,000, 2 -$25,000 up to but not including $50,000, 3 -$50,000 up to (but not including)$75,000, 4 -$75,000 up to (but not including)$100,000,or 5 -$100,000 or more? 9 -DK/REF LAN.[LANGUAGE OF INTERVIEW:] Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 1 -ENGLISH 2 -SPANISH 10 Otay Water District Survey Customer Service 2006 .Proposed Draft INT.Hello,my name is .I'm calling on behalf of the Otay Water District.We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions.[IF NEEDED:] Are you at least 18 years of age or older?[IF 18+HOUSEHOLDER NOT AVAILABLE NOW,ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER.[VERSION OF INTERVIEW:]1 -VERSION A 2 -VERSION B* *=RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC.Let me assure you that no names or addresses are associated with the telephone numbers,and all of your responses are completely anonymous.The questions take about ten minutes.To ensure that my work is done honestly and correctly,this call may be monitored.Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:]My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP.[ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:]This project is sponsored by the Otay Water District,and it's about some issues related to your household water supply.[IF SPONSOR INFORMATION GIVEN TO RESPONDENT,"TOPIC"=1] SEX.[RECORD GENDER OF RESPONDENT:] 1 -MALE 2 -FEMALE LP.[IF INDICATED BY ACCENT:]Would you prefer that we speak in... 1 -English or 2 -Spanish? 01.Have you or anyone in your household or business called the Otay Water District for service or other help during the past 12 months? 1 -YES 2 -NO -THANK AND TERMINATE INTERVIEW 9 -OK/REF -THANK AND TERMINATE INTERVIEW Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 01 a-Please indicate the type of customer you are 1-Residential 2-Business 3-Agriculture 4-0ther,SPECIFY - Q1 b.[IF YES:]Was the main purpose of your last call... 1 - a repair issue, 2 - a billing issue,or ------------>GO TO 02 3 -another issue?--->GO TO 02 9 -OK/REF ------------>GO TO 03 01c.[IF REPAIR ISSUE:]What type of repair did you call about?Was it... 1 - a pipeline break, 2 - a problem with supply to your home, 3-a suspected leak 4 -another problem?[SPECIFY:]_ 9 -OK/REF Q1d.Oid you make any other calls to customer service in the past 12 months that were not repair related? 1-YES 2-NO-GO TO 03 3--0K -GO TO 03 02.What was the reason for that customer service call?[DO NOT VOLUNTEER] 1-0id not understand bill-[IF 01b =1--GO TO 03-IF 01b=2 or 3,GO TO 02a] 2-Thought I was charged too much for the amount of water I used-- [IF 01 b =1--GO TO 03-IF 01 b=2 or 3,GO TO 02a] 3-Thought I used less water than bill indicated/Meter misread--[IF 01b =1--GO TO 03-IF 01b=2 or 3,GO TO 02a] 4---Why different amount from same month last year--[IF 01 b =1--GO TO 03-IF 01b=2 or3,GO TO 02a] 5-Question about message box on bill--[IF 01b =1--GO TO 03-IF 01 b=2 or 3,GO TO 02a] 6-Address change-[IF 01b =1--GO TO 03-IF 01b=2 or 3,GO TO 02a] ii Ii'I" I' I Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 2 7---Start service-[IF Q1 b =1--GO TO 03-IF 01 b=2 or 3,GO TO 02a] 8---Stop Service-[IF 01b =1--GO TO 03-IF 01b=2 or 3,GO TO Q2a] 9-Reconnect Service after shutoff--[IF 01b =1--GO TO 03-IF Q1 b=2 or 3,GO TO 02a] 15-0ther?SPECIFY -[IF Q1b =1--GO TO 03-IF 01 b=2 or 3,GO TO Q2a] 20-DKIREF [Go to 03] Q2a.[IF 02 =1-15]Did you make any other calls to customer service in the past 12 months? 1-YES 2-NO-GO TO 03 3--DK -GO TO 03 Q2b.What was the reason for that customer service call?[DO NOT VOLUNTEER] 1-Did not understand bill 2-Thought I was charged too much for the amount of water I used 3-Thought I used less water than bill indicated/Meter misread 4---Why different amount from same month last year 5-Question about message box on bill 6-Address change 7---Start service 8---Stop Service 9-Reconnect Service after shutoff 10--a pipeline break, 11 - a problem with supply to your home 15-0ther?SPECIFY _ 20-DKIREF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 3 03.How satisfied or dissatisfied were you with the service you received as far as.'" a.your ability to reach a service representative?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF b.the courtesy of the service representative?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF c.the professionalism of the service representative?Were you...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF d.the knowledge and expertise of your service representative?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF e.getting your problem resolved?Were you ...* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 04.Overall,how would you rate the quality of service that you received?Would you say 1 -excellent, 2 -good, 3 -fair 4 -poor 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 4 05.With regard to the problem or question you called about,how many calls did it take to get your issue resolved? 05a.[IF 05 >1-0THERWISE,GO TO 06]Was your question or problem ultimately resolved to your satisfaction? 1-YES 2-NO 3-0K/REF 06.Oid your call require a field visit to your property? 1-YES 2-NO -------------[GO TO 012] 3-0K/REF------------------[GO TO 012] 07.[IF 06 =1]What did the field representative do? 08.How satisfied were you with the field service outcome?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 09.How satisfied were you with the time required to come to your property to provide the field service?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 010.How satisfied were you with the amount of time the field service representative needed at your property?Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 011.Please rate your overall satisfaction with the field service you received. 1 -excellent, 2 -good, 3 -fair,or 4 -poor? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 5 012.Have you also contacted the Otay Water District by any of the following methods? Yes No DK/REF 1.e-mail 1 [12a]2 9 2.mailed letter 1 [12b]2 9 3.in person 1 [12c]2 9 Q12a-c How satisfied were you with the service you received from those contacts? 12a 12b 12c 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -DK/REF 013.Have you utilized the Otay Water District's off-site payment center? 1-YES ----------[GO TO 014] 2-NO 3-DK/REF-----------[GO TO 014] Q13a.[IF 013=2]How likely would you be to use an off~site payment center if one were located within one mile of your property? 1-Very Likely 2-Somewhat Likely 3-Somewhat Unlikely 4-Very Unlikely 9---DK/REF 014.How do you pay your water bill most months? 1-Send check by mail 2-Automatic bank deduction 3-Credit card over the telephone 4-ln person at the Otay Water District office 5-ln person at payment center 6-0n-line (Internet) 015.No matter how you presently pay your bill,how would you prefer to pay your bill most of the time? 1-Send check by mail---------GO TO 016 2-Automatic bank deduction---------GO TO 016 3-Credit card over the telephone---------GO TO 016 4-ln person at the Otay Water District office 5-ln person at payment center 6-0n-line (Internet)---------GO TO 016 Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 6 015a.[IF 015 =4 or 5]Why do you prefer to pay in person?DO NOT VOLUNTEER 1-save postage 2-get receipt 3-1 usually pay at the last minute 4-1 enjoy the personal contact/getting out of the house 9-0ther-SPECIFY '_ 016.In the past 6 months,have you used the Otay Water District website to obtain information or other service from the Otay Water District? 1-YES 2-NO-----------GO TO 017 3-DK/REF-----------GO TO 017 Q16a.[IF 016=1]How satisfied were you with the web service you received? Were you* 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF Q17.The Otay Water District has an Interactive Voice Response feature in their telephone system.This feature provides the customer with account information, total amount due,and last payment received.Have you used this feature? 1-YES 2-NO-----------GO TO 018 3-DK/REF-----------GO TO 018 Q17a.[IF 017 =1]Did you find this feature to be useful? 1-YES 2-NO 3-DK/REF Q17b.How easy was the system to use? 1-Veryeasy 2-Somewhat easy 3-Somewhat difficult 4-Very difficult 9-DK/REF Q17c.When you last called the Otay Water District for customer service, were you able to resolve your question or problem using the automated system only? 1-YES 2-NO 3-DK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 7 017d.Are there any other features that you would like to have offered by the Interactive Voice Response system? 1-Yes 2-No ---[GO TO Q18] 3-DK/REF ---[GO TO Q18] 015e.[IF Q17c =1]What feature or features would you like the Automated Voice Response system to offer?[RECORD UP TO 2] 018.Regarding your monthly billing,How satisfied are you with the accuracy of your water bill? 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 019.How satisfied are you with the ease of understanding your water bill? 1 -very satisfied, 2 -somewhat satisfied, 3 -somewhat dissatisfied,or 4 -very dissatisfied? 9 -OK/REF 020.How confident are you in the accuracy of your monthly meter reading? 1 -very confident, 2 -somewhat confident, 3 -not very confident,or 4 -not at all confident? 9 -NOT SURE/REF 021.Do you read the messages in the message box on your monthly bill? 1-YES 2-NO 3---010 NOT EVEN KNOW MESSAGES WERE THERE [VOLUNTEERED] 022.What changes,if any,would you suggest to the Otay Water District that you think could improve the convenience of your monthly bill? O=No changes 023.In comparison to other companies that bill you monthly,such as electricity,cable tv,or others,how would you rate your overall customer experience with us on a scale of 1-5,where 5 means that the Otay Water District is the best of these companies and 1 means that the Otay Water District is the worst. Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 8 In closing,these questions are for comparison purposes only. CUST.How long have you been a customer of the Otay Water District? _____YEARS PPH.How many persons,including yourself,live in your household? 99 -OK/REF TEN.Is your residence owned by someone in your household,or isit rented? 1 -OWN 2 -RENT/OTHER STATUS 9 -OK/REF EDU.What is the highest grade or year of school that you have completed and received credit for... 1 -high school or less, 2 -at least one year of college,trade or vocational school, 3 -graduated college with a bachelor's degree,or 4 -at least one year of graduate work beyond a bachelor's degree? 9 -OK/REF AGE.Please tell me when I mention the category that contains your age... 1 -18 to 24, 2 -25 to 34, 3 -35 to 44, 4 -45 to 54, 5 -55 to 64,or 6 -65 or over? 9 -OK/REF ETH.Which of the following best describes your ethnic or racial background... 1 -white,not of Hispanic origin; 2 -black,not of Hispanic origin; 3 -Hispanic or Latino; 4 -Asian or Pacific Islander; 5 -Native American;or 6 -another ethnic group?[SPECIFY:]_ 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 9 INC.Now,we don't want to know your exact income,but just roughly,could you tell me jf your annual household income before taxes is... 1 -under $25,000, 2 -$25,000 up to but not including $50,000, 3 -$50,000 up to (but not including)$75,000, 4 -$75,000 up to (but not including)$100,000,or 5 -$100,000 or more? 9 -DK/REF LAN.[LANGUAGE OF INTERVIEW:] Otay Water District Survey DRAFT (October 2006) Customer Service Rea &Parker Research 1 -ENGLISH 2 -SPANISH 10 Otay Water District Survey 2006 Proposed Draft INT. Hello,my name is .I'm calling on behalf of the Otay Water District. We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions.[IF NEEDED:]Are you at least 18 years of age or older?[IF 18+HOUSEHOLDER NOT AVAILABLE NOW,ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER.[VERSION OF INTERVIEW:]1 -VERSION A 2 -VERSION B* '"=RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC.Let me assure you that no names or addresses are associated with the telephone numbers,and all of your responses are completely anonymous.The questions take about ten minutes.To ensure that my work is done honestly and correctly,this call may be monitored.Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:]My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP [ONLV IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:]This project is sponsored by the Otay Water District,and it's about some issues related to your household water supply.[IF SPONSOR INFORMATION GIVEN TO RESPONDENT,"TOPIC"=1] CUST.How long have you been a customer of the Otay Water District?[IF LESS THAN ONE YEAR,THANK AND CODE NOR·RES} _-,-__YEARSo.•..•......>"NOR·RES" 99 -OK/REF,BUT AT LEAST ONE YEAR SEX.[RECORD GENDER OF RESPONDENT:] 1 -MALE 2·FEMALE •••••••-••••••---.-••----QUALIFIED RESPONDENT:QUOTAS CHECKED;DATA SAVED --••---.---•••--- LP.[IF INDICATED BY ACCENT:]Would you prefer that we speak in... 1 -English or 2 -Spanish? Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C1 01.These first few questions deal with the use of water in your household.Which of the following is currently the main source of drinking water in your home... 1 -tap water,------------>GO TO Q2 2 -tap water that you filter at home,or 3 -bottled water? 4 -OTHER VOLUNTEERED,SPECIFY:------>GO TO Q2 9 -OK/REF ------------>GO TO Q2 02.How would you describe your household's level of interest in conserving water at home?Would you say...* 1 - a high level of interest, 2 - a moderate level, 3 - a low level,or 4 -no interest at all? 9 -OK/REF 03.During the past year,would you say your household's awareness of water conservation has been...*[REVERSE 1 - 3 ONLY] 1 -increasing, 2 -staying about the same, 3 -decreasing, 4 -or are you not sure?[INCLUDES OK/REF] 04.These next questions are related to the water supply in San Diego County.How confident are you in the ability of your water agency to provide enough water to the district?Would you say...*[REVERSE] 1 -very confident, 2 -somewhat confident, 3 -not very confident, 4 -not at all confident, 5 -or are you not sure?[INCLUDES OK/REF] 05.How much concern do you have,if any,about someone contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no concern at all? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C2 Q6.How much confidence do you have,ifany,in the local water authorities when it comes to preventing someone from contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no confidence at all? 9 -OK/REF Q7.Does your household pay its own water bill,or does someone else,like a landlord or homeowners'association,pay the water bill for you? 1 -RESPONDENT/OTHER MEMBER OF HOUSEHOLD PAYS 2 -LANDLORD/HOMEOWNERS'ASSOC.lOTHER ------------>GO TO 08 9 -OK/REF ------------>GO TO a8 [ASK a7a TO a7h IF 07 =1 -HH PAYS WATER BILL:] 07a.A reliable water supply is one that can be depended upon to consistently provide enough water to meet the region's needs.How much more per month,if any, would you be willing to pay for your water service,if it ensured a more reliable water supply for you? $ADDITIONAL $PER MONTH [CONFIRM] O-NONE 999 -OK/REF 07b.In the past year,do you believe that your water rates have... 1 -gone up, 2 -gone down, 3 -stayed about the same, 4 -or are you not sure? 9 -REF Q7c.[IF RESIDENT WITH OTAY SEWER-OTHERWISE,GO TO a7f] Are you aware that your monthly invoice from the Otay Water District includes charges for your sewer service? 1 -YES 2-NO 9 -OK/REF 07d.In the past year,have your sewer rates... 1 -gone up, 2 -gone down,----------->GO TO a7f 3 -stayed the sam.e,----------->GO TO 07f 4 -or are you not sure?----------->GO TO 07f 9 -REF ----------->GO TO a7f Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C3 07e.[IF Q7b =1 and 07d =1 -GONE UP:]Which increase do you believe has been larger...*[REVERSE 1-2 ONLY] 1 -sewer, 2 -water, 3 -both equally, 4 -or are you not sure? 9 -REF 07f.Do you read the newsletter that comes in the mail with your monthly water bill... 1 -every time, 2 -most times, 3 -sometimes,or 4 -never? 9 -OK/REF 07g The Otay Water District provides each customer household with an annual Consumer Confidence Report before July 1st of each year.Have you ever read this report? 1 -YES 2 -NO ----------->GO TO 08 9 -OK/REF ----------->GO TO 08 07h.[IF YES:]What is one area the Otay Water District could improve upon to make the report more useful to you?[PROBE FOR AND RECORD ONE AREA] 99 -NONE/OK/REF 08.These next few questions deal with saving water outside.Does your residence have any outdoor landscaping that someone in your household is directly responsible for maintaining? 1 -YES 2 -NO/APT/CONOO/NO YARD RESPONSIBILITIES ------------>GO TO Q9 9 -OK/REF ------------>GO TO 09 Q8a.[IF 08 =1:]Does your landscaping include a lawn? 1 -YES 2 -NO ------------>GO TO 08c 9 -OK/REF ------------>GO TO Q8c Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C4 Q8b.[IF YES:]Reducing the size of your lawn helps save water. Which of the following would be most likely to motivate you to reduce the size of your lawn:...* 1 -having a reduced water bill due to using less water, 2 -having a more easily maintained yard, 3 -a financial incentive of up to one dollar per square foot, 4 -or nothing? 9 -OK/REF Q8c.[IF Qa=1]Do you have an automatically-controlled sprinkler system for your landscaping? 1 -YES 2 -NO ------------>GO TO Qae 9 -OK/REF ------------>GO TO Qae Q8d.[IF YES:]During the past 12 months,how often has anyone made adjustments to the automatic controller for your sprinkler system? 1 -NOT AT ALL 2 - 1 TO 3 TIMES 3 - 4 TIMES OR MORE 4 -USE WEATHER-BASED CONTROLLER -GO TO Q9 9 -OK/REF 08e.Have you heard about weather-based irrigation controllers that automatically adjust your landscape watering based on changing weather conditions? 1 -YES 2 -NO ---------------------------------------------------->GO TO Qag 9 -OK/REF ------------------------------------------------>GO TO Qag Q8f.[IF Qac=1 and Qae=1:]Have you had a weather-based controller installed at your residence? 1 -YES ---------------------------------------------->GO TO Q9 2-NO 9 -OK/REF 08g.[IF Qae >1 or Qaf >1:]With a weather-based system,you do not have to make adjustments yourself for daily changes in the weather.The controller senses rain,temperature,and humidity and automatically adjusts irrigation. Typically,you can purchase a weather-based control system for less than $300. How likely,if at all,are you to purchase a weather-based controller during the next 12 months?Would you say...* 1 -very likely,-------------GO TO Qai 2 -somewhat likely, 3 -somewhat unlikely,or 4 -very unlikely? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C5 Q8h.[IF Q8g >1:]If $50 vouchers were offered toward the purchase of a weather- based controller,would this...*[REVERSE 1·2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8j] 2 -not make any difference to you? 9 -OK/REF 08i [IF Q8h >1:];If $100 vouchers were offered toward the purchase of a weather-based controller,would this...*[REVERSE 1·2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8i] 2 -not make any difference to you? 9 -OK/REF Q8j.A weather-based controller would save you approximately $30 per year on your water bill.Does hearing this make you ...* [REVERSE 1·2 ONLY] 1 -more likely to purchase a weather-based controller, 2 -less likely,or 3 -does not make any difference? 9 -OK/REF ASK EVERYONE: Q9.Have you ever seen or heard anything about the Water Conservation Garden at Cuyamaca College? 1 -YES 2 -NO···•••••••··>GO TO Q10 9 -OK/REF ••••••••••••>GO TO Q10 Q9a.[IF YES:]Have you ever visited the garden? 1 -YES 2 -NO ••••••••••••>GO TO Q10 9 -OK/REF ••••••••••••>GO TO Q10 Q9b.[IF YES:]About how many times have you visited the Garden during the past six years? ____TIMES 999 -OK/REF Q9c.Have you made any changes to your watering or landscaping practices as a result of visiting the Garden? 1 -YES 2 -NO ••••••••••••>GO TO Q10 9 -OK/REF ••••••••••••>GO TO Q10 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C6 09d.[IF YES:]What was the one major change you made? [PROBE FOR AND RECORD ONE CHANGE] 99 -OK/REF 010.Do you recall having seen or heard any OUTDOOR water usage conservation messages during the past year? 1 -YES 2 -NO ------------>GO TO Q12 9 -OK/REF ------------>GO TO Q12 010a.[IF Q1 0=1:]Where do you recall seeing or hearing these messages most often?[DO NOT READ;PROBE FOR AND RECORD ONLY ONE] 1 -TELEVISION 2-RADIO 3 -NEWSPAPERS 4 -FRIENDS/FAMILY 5 -WEBSITE OF MY WATER AGENCY 6 -MATERIAL WITH MONTHLY BILL 7 -SDCWA WEBSITE 8 -DO NOT REMEMBER 9 -OTHER,SPECIFY:_ 010b [IF Q10a >0].Do you remember anything about what these messages said? 1.Yes (please tell us what you remember about the messages) 2.No.I do not remember what the messages said. [ASK Q11 ONLY IF Q8 = 1 (HH responsible for landscaping)AND IF Q10 =YES;IF NOT,GO TO Q12] 011.Do you recall the specific steps,if any,that your household has taken during the past year as a direct response to these messages about reducing your outdoor water usage? 1 -YES 2 -Have not taken any specific steps as a response to these messages ------------>GO TOQ12 3 -ALREADY CONSERVING BEFORE MESSAGES ------------>GO TO Q12 9 -OK/REF ------------>GO TO Q12 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C7 011 a.[IF YES:]What is the major step your household has taken to reduce outdoor water usage as a response to these messages? [PROBE FOR AND RECORD ONLY ONE STEP] 99 -OK/REF 012:How would you rate your overall satisfaction with the Otay Water District as your water service provider? 1---Excellent 2---Very Good 3-Good 4---Fair 5-Poor 6---Very Poor 9-DKIREF 013.Have you ever visited the Otay Water District website? 1 -YES 2 -HAVE ACCESS TO INTERNET,BUT HAVE NOT VISITED WEBSITE -------- --------------->GO TO Q14 3-00 NOT HAVE ACCESS TO THE INTERNET------------GO TO Q14 9 -OK/REF ----------------->GO TO Q14 013a.[IF YES:]How would you rate the website?Would you say... 1 -excellent, 2 -good, 3 -fair,or 4 -poor? 9 -OK/REF 014.These next questions are about recycled water,which is wastewater that has been treated and is used for a variety of purposes other than drinking water.The use of recycled water is another way to increase our water supply.Would you favor or oppose the use of recycled water for the following types of uses... [CLARIFY:]Do you strongly or somewhat {favor/oppose}that? strgly smwt smwt strgly OK! DO you favor or oppose using recycled water...favor favor oppose oppose REF a)for watering landscaping along freeways and golf courses?1 2 3 4 9 b)for industrial processing and manufacturing?1 2 3 4 9 c)for toilet flushing in new office buildings?1 2 3 4 9 d)for recreational lakes?1 2 3 4 9 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C8 e)for watering landscape and common areas in multi-family housing units?1 2 3 4 9 f)for watering sports fields and parks?1 2 3 4 9 g)for watering residential front yards?1 2 3 4 9 h)as an addition to the supply of drinking water 1 2 3 4 9 If Q14h =1,GO TO Q15-0therwise continue with 14i-1 through 4 Q14i.Recycled water can receive advanced treatment in the form of additional filtration,reverse osmosis,and chlorination.Would you accept the addition of advanced treated recycled water to supplement the sources of our drinking water if you learned that.'" 1.the recycled water would reside for over one year,mixed with other water,in an open reservoir and then be treated again at a water filtration plant? 2.recycled water is currently used to supplement drinking water in other U.S.communities? 3.recycled water could supply as much as 10% of our local drinking water supplies? 4.California's drinking water standards are among the most strict in the nation,and recycled water would be treated to meet those standards? Yes No 2 2 2 2 OK/REF 9 9 9 9 ASK ALL: 015.Would you be in favor of pursuing international agreements with Mexico whereby The United States and Mexico would cooperate to develop and maintain additional supplies of water? 1.Yes 2.No 3.OK/REF 016.Have you called the Otay Water District for service or other help during the past 12 months? 1 -YES 2-NO 9 -OK/REF 016a.[IF YES:]Was the main purpose of your call... 1 - a repair issue, Otay Water District Survey DRAFT (October 2006) Rea &Parker Research Cg 2 - a billing issue,or 3 -another issue?[SPECIFY:]_ 9 -OK/REF In closing,these questions are for comparison purposes only. PPH.How many persons,including yourself, live in your household? 99 -OK/REF TEN.Is your residence owned by someone in your household,or is it rented? 1 -OWN 2 -RENT/OTHER STATUS 9 -OK/REF EDU.What is the highest grade or year of school that you have completed and received credit for... 1 -high school or less, 2 -at least one year of college,trade or vocational school, 3 -graduated college with a bachelor's degree,or 4 -at least one year of graduate work beyond a bachelor's degree? 9 -OK/REF AGE.Please tell me when I mention the category that contains your age... 1 -18 to 24, 2 -25 to 34, 3 -35 to 44, 4 -45 to 54, 5 -55 to 64,or 6 -65 or over? 9 -OK/REF ETH.Which of the following best describes your ethnic or racial background... 1 -white,not of Hispanic origin; 2 -black,not of Hispanic origin; 3 -Hispanic or Latino; 4 -Asian or Pacific Islander; 5 -Native American;or 6 -another ethnic group? [SPECIFY:]_ 9 -OK/REF I~1r 1..•..:. 1 ~~t [':1 f·'·.'··.:1 Ii: r': [:i,:fI"i Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C10 INC.Now,we don't want to know your exact income,but just roughly,could you tell me if your annual household income before taxes is... 1 -under $25,000, 2 -$25,000 up to but not including $50,000, 3 -$50,000 up to (but not including)$75,000, 4 -$75,000 up to (but not including)$100,000,or 5 -$100,000 or more? 9 -OK/REF LAN.[LANGUAGE OF INTERVIEW:] Otay Water District Survey DRAFT (October 2006) Rea &Parker Research 1 -ENGLISH 2 -SPANISH C11 Otay Water District Survey 2006 Proposed Draft INT.Hello,my name is .I'm calling on behalf of the Otay Water District. We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions.[IF NEEDED:]Are you at least 18 years of age or older?[IF 18+HOUSEHOLDER NOT AVAILABLE NOW,ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER.[VERSION OF INTERVIEW:]1 -VERSION A 2 -VERSION B* *=RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IG.Let me assure you that no names or addresses are associated with the telephone numbers,and all of your responses are completely anonymous.The questions take about ten minutes.To ensure that my work is done honestly and correctly,this call may be ,monitored.Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:]My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP.[ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:]This project is sponsored by the Otay Water District,and it's about some issues related to your household water supply.[IF SPONSOR INFORMATION GIVEN TO RESPONDENT,"TOPIC"=1] GUST.How long have you been a customer of the Otay Water District?[IF LESS THAN ONE YEAR,THANK AND CODE NOR-RES] ____yEARS o----------->IINOR-RES" 99 -OK/REF,BUT AT LEAST ONE YEAR SEX.[RECORD GENDER OF RESPONDENT:] 1 -MALE 2 -FEMALE •••••••••••••••••••••-••••QUALIFIED RESPONDENT:QUOTAS CHECKED;DATA SAVED •••••-••••-.-••-----. LP.[IF INDICATED BY ACCENT:]Would you prefer that we speak in... 1 -English or 2 -Spanish? Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C1 01.These first few questions deal with the use of water in your household.Which of the following is currently the main source of drinking w~ter in your home... 1 -tap water,------------>GO TO Q2 2 -tap water that you filter at home,or 3 -bottled water? 4 -OTHER VOLUNTEERED,SPECIFY:------>GO TO Q2 9 -OK/REF ------------>GO TO Q2 02.How would you describe your household's level of interest in conserving water at home?Would you say...* 1 - a high level of interest, 2 - a moderate level, 3 - a low level,or 4 -no interest at all? 9 -OK/REF 03.During the past year,would you say your household's awareness of water conservation has been...*[REVERSE 1 - 3 ONLY] 1 -increasing, 2 -staying about the same, 3 -decreasing, 4 -or are you not sure?[INCLUDES OK/REF] 04.These next questions are related to the water supply in San Diego County.How confident are you in the ability of your water agency to provide enough water to the district?Would you say...*[REVERSE] 1 -very confident, 2 -somewhat confident, 3 -not very confident, 4 -not at all confident; 5 -or are you not sure?[INCLUDES OK/REF] 05.How much concern do you have,if any,about someone contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no concern at all? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C2 Q6.How much confidence do you have,if any,in the local water authorities when it comes to preventing someone from contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no confidence at all? 9 -DK/REF Q7.Does your household pay its own water bill,or does someone else,like a landlord or homeowners'association,pay the water bill for you? 1 -RESPONDENT/OTHER MEMBER OF HOUSEHOLD PAYS 2 -LANDLORD/HOMEOWNERS'ASSOC.lOTHER ------------>GO TO 08 9 -DK/REF ------------>GO TO 08 [ASK 07a TO 07h IF 07 =1 -HH PAYS WATER Bill:] Q7a.A reliable water supply is one that can be depended upon to consistently provide enough water to meet the region's needs.How much more per month,if any, would you be willing to pay for your water service,if it ensured a more reliable water supply for you? $ADDITIONAL $PER MONTH [CONFIRM] O-NONE 999 -DK/REF Q7b.In the past year,do you believe that your water rates have... 1 -gone up, 2 -gone down, 3 -stayed about the same, 4 -or are you not sure? 9 -REF Q7c.[IF RESIDENT WITH OTAY SEWER-OTHERWISE,GO TO 07f] A.re you aware that your monthly invoice from the Otay Water District includes charges for your sewer service? 1 -YES 2-NO 9 -DK/REF Q7d.In the past year,have your sewer rates... 1 -gone up, 2 -gone down,----------->GO TO Q7f 3 -stayed the same,----------->GO TO 07f 4 -or are you not sure?----------->GO TO 07f 9 -REF ----------->GO TO 07f Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C3 07e.[IF Q7b =1 and Q7d =1 -GONE UP:]Which increase do you believe has been larger...*[REVERSE 1-2 ONLY] 1 -sewer, 2 -water, 3 -.both equally, 4 -or are you not sure? 9 -REF 07f.Do you read the newsletter that comes in the mail with your monthly water bill... 1 -every time, 2 -most times, 3 -sometimes,or 4 -never? 9 -OK/REF 07g The Otay Water District provides each customer household with an annual Consumer Confidence Report before July 1st of each year.Have you ever read this report? 1 -YES 2 -NO ----------->GO TO Q8 9 -OK/REF ----------->GO TO Q8 07h.[IF YES:]What is one area the Otay Water District could improve upon to make the report more useful to you?[PROBE FOR AND RECORD ONE AREA] 99 -NONE/OK/REF 08.These next few questions deal with saving water outside.Does your residence have any outdoor landscaping that someone in your household is directly responsible for maintaining? 1 -YES 2 -NO/APT/CONOO/NO YARD RESPONSIBILITIES ------------>GO TO Q9 9 -OK/REF ------------>GOTO Q9 08a.[IF Q8 =1:]Does your landscaping include a lawn? 1 -YES 2 -NO ------------>GO TO Q8c 9 -OK/REF ------------>GO TO Q8c Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C4 Q8b.[IF YES:]Reducing the size of your lawn helps save water. Which of the following would be most likely to motivate you to reduce the size of your lawn:...* 1 -having a reduced water bill due to using less water, 2 -having a more easily maintained yard, 3 - a financial incentive of up to one dollar per square foot, 4 -or nothing? 9 -OK/REF Q8c.[IF Q8=1]Do you have an automatically-controlled sprinkler system for your landscaping? 1 -YES 2 -NO ------------>GO TO Q8e 9 -OK/REF ------------>GO TO Q8e Q8d.[IF YES:]During the past 12 months,how often has anyone made adjustments to the automatic controller for your sprinkler system? 1 -NOT AT ALL 2 - 1 TO 3 TIMES 3 - 4 TIMES OR MORE 4 -USE WEATHER-BASED CONTROLLER -GO TO Q9 9 -OK/REF Q8e.Have you heard about weather-based irrigation controllers that automatically adjust your landscape watering based on changing weather conditions? 1 -YES 2 -NO ---------------------------------------------------->GO TO Q8g 9 -OK/REF ------------------------------------------------>GO TO Q8g 08f.[IF Q8c=1 and Q8e=1:]Have you had a weather-based controller installed at your residence? 1 -YES ---------------------------------------------->GO TO Q9 2-NO 9 -OK/REF 08g.[IF Q8e >1 or Q8f >1:]With a weather-based system,you do not have to make adjustments yourself for daily changes in the weather.The controller senses rain,temperature,and humidity and automatically adjusts irrigation. Typically,you can purchase a weather-based control system for less than $300. How likely,if at all,are you to purchase a weather-based controller during the next 12 months?Would you say...* 1 -very likely,-------------GO TO Q8i 2 -somewhat likely, 3 -somewhat unlikely,or 4 -very unlikely? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C5 Q8h.[IF Q89 >1:]If $50 vouchers were offered toward the purchase of a weather- based controller,would this...*[REVERSE 1-2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8j] 2 -not make any difference to you? 9 -OK/REF Q8i [IF Q8h >1:];If $100 vouchers were offered toward the purchase of a weather-based controller,would this...*[REVERSE 1-2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8i] 2 -not make any difference to you? 9 -OK/REF 08j.A weather-based controller would save you approximately $30 per year on your water bill.Does hearing this make you...* [REVERSE 1-2 ONLY] 1 -more likely to purchase a weather-based controller, 2 -less likely,or 3 -does not make any difference? 9 -OK/REF ASK EVERYONE: 09.Have you ever seen or heard anything about the Water Conservation Garden at Cuyamaca College? 1 -YES 2 -NO------------>GO TO 010 9 -OK/REF ------------>GO TO 010 Q9a.[IF YES:]Have you ever visited the garden? 1 -YES 2 -NO ------------>GO TO 010 9 -OK/REF ------------>GO TO 010 09b.[IF YES:]About how many times have you visited the Garden during the past six years? ____TIMES 999 -OK/REF 09c.Have you made any changes to your watering or landscaping practices as a result of visiting the Garden? 1 -YES 2 -NO ------------>GO TO Q10 9 -OK/REF ------------>GO TO 010 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C6 09d.[IF YES:]What was the one major change you made? [PROBE FOR AND RECORD ONE CHANGE] 99 -OK/REF 010.Do you recall having seen or heard any OUTDOOR water usage conservation messages during the past year? 1 -YES 2 -NO ------------>GO TO 012 9 -OK/REF ------------>GO TO 012 010a.[IF 010=1:]Where do you recall seeing or hearing these messages most often?[DO NOT READ;PROBE FOR AND RECORD ONLY ONE] 1 -TELEVISION 2 -RADIO 3 -NEWSPAPERS 4 -FRIENDS/FAMILY 5 -WEBSITE OF MY WATER AGENCY 6 -MATERIAL WITH MONTHLY BILL 7 -SDCWA WEBSITE 8 -DO NOT REMEMBER 9 -OTHER,SPECIFY:_ 010b [IF 010a >0].Do you remember anything about what these messages said? 1.Yes (please tell us what you remember about the messages) 2.No.I do not remember what the messages said. [ASK 011 ONLY IF 08 = 1 (HH responsible for landscaping)AND IF 010 =YES;IF NOT,GO TO 012] 011.Do you recall the specific steps,if any,that your household has taken during the past year as a direct response to these messages about reducing your outdoor water usage? 1 -YES 2 -Have not taken any specific steps as a response to these messages ------------>GO TO 012 3 -ALREADY CONSERVING BEFORE MESSAGES ------------>GO TO 012 9 -OK/REF ------------>GO TO 012 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C7 011 a.[IF YES:]What is the major step your household has taken to reduce outdoor water usage as a response to these messages? [PROBE FOR AND RECORD ONLY ONE STEP] 99 -OK/REF 012:How would you rate your overall satisfaction with the Otay Water District as your water service provider? 1---Excellent 2---Very Good 3-Good 4---Fair 5-Poor 6---Very Poor 9-DKIREF 013.Have you ever visited the Otay Water District website? 1 -YES 2 -HAVE ACCESS TO INTERNET,BUT HAVE NOT VISITED WEBSITE -------- --------------->GO TO 014 3-00 NOT HAVE ACCESS TO THE INTERNET------------GO TO Q14 9 -OK/REF ----------------->GO TO 014 013a.[IF YES:]How would you rate the website?Would you say... 1 -excellent, 2 -good, 3 -fair,or . 4 -poor? 9 -OK/REF 014.These next questions are about recycled water,which is wastewater that has been treated and is used for a variety of purposes other than drinking water.The use of recycled water is another way to increase our water supply.Would you favor or oppose the use of recycled water for the following types of uses... [CLARIFY:]Do you strongly or somewhat {favor/oppose}that? strgly smwt smwt strgly DK! Do you favor or oppose using recycled water...favor favor oppose oppose REF a)for watering landscaping along freeways and golf courses?1 2 3 4 9 b)for industrial processing and manufacturing?1 2 3 4 9 c)for toilet flushing in new office buildings?1 2 3 4 9 d)for recreational lakes?1 2 3 4 9 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C8 e)for watering landscape and common areas in multi-family housing units?1 2 3 4 9 f)for watering sports fields and parks?1 2 3 4 9 g)for watering residential front yards?1 2 3 4 9 h)as an addition to the supply of drinking water 1 2 3 4 9 If Q14h =1,GO TO Q15-0therwise continue with 14i·1 through 4 Q14i.Recycled water can receive advanced treatment in the form of additional filtration,reverse osmosis,and chlorination.Would you accept the addition of advanced treated recycled water to supplement the sources of our drinking water if you learned that.. I 1.the recycled water would reside for over one year,mixed with other water,in an open reservoir and then be treated again at a water filtration plant? 2.recycled water is currently used to supplement drinking water in other U.S.communities? 3.recycled water could supply as much as 10% of our local drinking water supplies? 4.California's drinking water standards are among the most strict in the nation,and recycled water would be treated to meet those standards? Yes No 2 2 2 2 OK/REF 9 9 9 9 ASK ALL: 015.Would you be in favor of pursuing international agreements with Mexico whereby The United States and Mexico would cooperate to develop and maintain additional supplies of water? 1.Yes 2.No 3.OK/REF 016.Have you called the Otay Water District for service or other help during the past 12 months? 1 -YES 2-NO .9-OK/REF 016a.[IF YES:]Was the main purpose of your call... 1 - a repair issue, Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C9 2 - a billing issue,or 3 -another issue?[SPECIFY:]_ 9 -OK/REF In closing,these questions are for comparison purposes only. PPH.How many persons,including yourself,live in your household? 99 -OK/REF TEN.Is your residence owned by someone in your household,or is it rented? 1 -OWN 2 -RENT/OTHER STATUS 9 -OK/REF EOU.What is the highest grade or year of school that you have completed and received credit for... 1 -high school or less, 2 -at least one year of college,trade or vocational school, 3 -graduated college with a bachelor's degree,or 4 -at least one year of graduate work beyond a bachelor's degree? 9 -OK/REF AGE.Please tell me when I mention the category that contains your age... 1 -18 to 24, 2 -25 to 34, 3 -35 to 44, 4 -45 to 54, 5 -55 to 64,or 6 -65 or over? 9 -OK/REF ETH.Which of the following best describes your ethnic or racial background... 1 -white,not of Hispanic origin; 2 -black,not of Hispanic origin; 3 -Hispanic or Latino; 4 -Asian or Pacific Islander; 5 -Native American;or 6 -another ethnic group?[SPECIFY:]~_ 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C10 INC.Now,we don't want to know your exact income,but just roughly,could you tell me if your annual household income before taxes is... 1 -under $25,000, 2 -$25,000 up to but not including $50,000, 3 -$50,000 up to (but not including)$75,000, 4 -$75,000 up to (but not including)$100,000,or 5 -$100,000 or more? 9 -DK/REF LAN.[LANGUAGE OF INTERVIEW:] Otay Water District Survey DRAFT (October 2006) Rea &Parker Research 1 -ENGLISH 2 -SPANISH C11 Otay Water District Survey 2006 Proposed Draft INT.Hello,my name is .I'm calling on behalf of the Otay Water District. We're conducting a study about some issues having to do with your household water supply and we're interested in your opinions.[IF NEEDED:]Are you at least 18 years of age or older?[IF 18+HOUSEHOLDER NOT AVAILABLE NOW,ASK FOR FIRST NAME AND MAKE CB ARRANGEMENTS] VER.[VERSION OF INTERVIEW:]1 •VERSION A 2 -VERSION B* *=RESPONSE OPTIONS REVERSED ON VERSION B FOR ALL QUESTIONS INDICATED IC.Let me assure you that no names or addresses are associated with the telephone numbers,and all of your responses are completely anonymous.The questions take about ten minutes.To ensure that my work is done honestly and correctly,this call may be monitored.Do you have a few minutes right now? [IF ASKED ABOUT MONITORING:]My supervisor randomly listens to interviews to make sure we're reading the questions exactly as written and not influencing answers in any way. TOP.[ONLY IF ASKED FOR MORE INFORMATION ABOUT TOPIC OR WHO'S SPONSORING IT?:]This project is sponsored by the Otay Water District,and it's about some issues related to your household water supply.[IF SPONSOR INFORMATION GIVEN TO RESPONDENT,"TOPIC"=1] CUST.How long have you been a customer of the Otay Water District?[IF LESS THAN ONE YEAR,THANK AND CODE NOR-RES] ____yEARS o----------->"NOR-RES" 99·OK/REF,BUT AT LEAST ONE YEAR SEX.[RECORD GENDER OF RESPONDENT:] 1 -MALE 2 -FEMALE ----••••••••••••••••••••••QUALIFIED RESPONDENT:QUOTAS CHECKED;DATA SAVED ••••••••__._._.- LP.[IF INDICATED BY ACCENT:]Would you prefer that we speak in... 1 -English or 2·Spanish? Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C1 01.These first few questions deal with the use of water in your household.Which of the following is currently the main source of drinking water in your home... 1 -tap water,------------>GO TO 02 2 -tap water that you filter at home,or 3 -bottled water? 4 -OTHER VOLUNTEERED,SPECIFY:------>GO TO 02 9 -DK/REF ------------>GO TO 02 02.How would you describe your household's level of interest in conserving water at home?Would you say...* 1 - a high level of interest, 2 - a moderate level, 3 - a low level,or 4 -no interest at all? 9 -DK/REF 03.During the past year,would you say your household's awareness of water conservation has been ...*[REVERSE 1 - 3 ONLY] '1 -increasing, 2 -staying about the same, 3 -decreasing, 4 -or are you not sure?[INCLUDES OK/REF] 04.These next questions are related to the water supply in San Diego County.How confident are you in the ability of your water agency to provide enough water to the district?Would you say...*[REVERSE] 1 -very confident, 2 -somewhat confident, 3 -not very confident, 4 -not at all confident, 5 -or are you not sure?[INCLUDES DK/REF] 05.How much concern do you have,if any,about someone contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no concern at all? 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C2 Q6.How much confidence do you have,if any,in the local water authorities when it comes to preventing someone from contaminating the local water supply in an attempt to harm the general population?Would you say... 1 - a great deal, 2 -some, 3 -not much,or 4 -no confidence at all? 9 -OK/REF Q7.Does your household pay its own water bill,or does someone else,like a landlord or homeowners'association,pay the water bill for you? 1 -RESPONDENT/OTHER MEMBER OF HOUSEHOLD PAYS 2 -LANDLORD/HOMEOWNERS'ASSOC.lOTHER ------------>GO TO 08 9 -OK/REF ------------>GO TO Q8 [ASK Q7a TO Q7h IF Q7 =1 -HH PAYS WATER BILL:] Q7a.A reliable water supply is one that can be depended upon to consistently provide enough water to meet the region's needs.How much more per month,if any, would you be willing to pay for your water service,if it ensured a more reliable water supply for you? $ADDITIONAL $PER MONTH [CONFIRM] O-NONE 999 -OK/REF Q7b.In the past year,do you believe that your water rates have ... 1 -gone up, 2 -gone down, 3 -stayed about the same, 4 -or are you not sure? 9 -REF Q7c.[IF RESIDENT WITH OTAY SEWER-OTHERWISE,GO TO Q7f] Are you aware that your monthly invoice from the Otay Water District includes charges for your sewer service? 1 -YES 2-NO 9 -OK/REF Q7d.In the past year,have your sewer rates... 1 -gone up, 2 -gone down,----------->GO TO Q7f 3 -stayed the same,----------->GO TO a7f 4 -or are you not sure?----------->GO TO a7f 9 -REF ----------->GO TO Q7f Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C3 07e.[IF Q7b =1 and Q7d =1 -GONE UP:]Which increase do you believe has been larger...*[REVERSE 1-2 ONLY] 1 -sewer, 2 -water, 3 -both equally, 4 -or are you not sure? 9 -REF 07f.Do you read the newsletter that comes in the mail with your monthly water bill... 1 -every time, 2 -most times, 3 -sometimes,or 4 -never? 9 -OK/REF 07g The Otay Water District provides each customer household with an annual Consumer Confidence Report before July 1st of each year.Have you ever read this report? 1 -YES 2 -NO ----------->GO TO Q8 9 -OK/REF ----------->GO TO Q8 07h.[IF YES:]What is one area the Otay Water District could improve upon to make the report more useful to you?[PROBE FOR AND RECORD ONE AREA] 99 -NONE/OK/REF 08.These next few questions deal with saving water outside.Does your residence have any outdoor landscaping that someone in your household is directly responsible for maintaining? 1 -YES 2 -NO/APT/CONOO/NO YARD RESPONSIBILITIES ------------>GO TO Q9 9 -OK/REF ------------>GO TO Q9 08a.[IF Q8 =1:]Does your landscaping include a lawn? 1 -YES 2 -NO ------------>GO TO Q8e 9 -OK/REF ------------>GO TO Q8e Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C4 Q8b.[IF YES:]Reducing the size of your lawn helps save water. Which of the following would be most likely to motivate you to reduce the size of your lawn:...* 1 -having a reduced water bill due to using less water, 2 -having a more easily maintained yard, 3 -a financial incentive of up to one dollar per square foot, 4 -or nothing? 9 -DK/REF Q8c.[IF 08=1]Do you have an automatically-controlled sprinkler system for your landscaping? 1 -YES 2 -NO ------------>GO TO 08e 9 -DK/REF ------------>GO TO 08e Q8d.[IF YES:]During the past 12 months,how often has anyone made adjustments to the automatic controller for your sprinkler system? 1 -NOT AT ALL 2 - 1 TO 3 TIMES 3 - 4 TIMES OR MORE 4 -USE WEATHER-BASED CONTROLLER -GO TO 09 9 -DK/REF Q8e.Have you heard about weather-based irrigation controllers that automatically adjust your landscape watering based on changing weather conditions? 1 -YES 2 -NO ---------------------------------------------------->GO TO 089 9 -DK/REF ------------------------------------------------>GO TO 089 Q8f.[IF 08c=1 and Q8e=1:]Have you had a weather-based controller installed at your residence? 1 -YES ---------------------------------------------->GO TO 09 2-NO 9 -DK/REF Q8g.[IF 08e >1 or 08f >1:]With a weather-based system,you do not have to make adjustments yourself for daily changes in the weather.The controller senses rain,temperature,and humidity and automatically adjusts irrigation. Typically,you can purchase a weather-based control system for less than $300. How likely,if at all,are you to purchase a weather-based controller during the next 12 months?Would you say...* 1 -very likely,-------------GO TO 08i 2 -somewhat likely, 3 -somewhat unlikely,or 4 -very unlikely? 9 -DK/REF II Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C5 08h.[IFQ8g >1:]If $50 vouchers were offered to~ard the purchase of a weather- based controller,would this...*[REVERSE 1-2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8j] 2 -not make any difference to you? 9 -OK/REF 08i [IF Q8h >1:];If $100 vouchers were offered toward the purchase of a weather-based controller,would this...*[REVERSE 1-2 ONLY] 1 -make you more likely to purchase a weather-based controller,[GO TO Q8i] 2 -not make any difference to you? 9 -OK/REF 08j.A weather-based controller would save you approximately $30 per year on your water bill.Does hearing this make you ...* [REVERSE 1-2 ONLY] 1 -more likely to purchase a weather-based controller, 2 -less likely,or 3 -does not make any difference? 9 -OK/REF ASK EVERYONE: 09.Have you ever seen or heard anything about the Water Conservation Garden at Cuyamaca College? 1 -YES 2 -NO------------>GO TO Q10 9 -OK/REF ------------>GO TO Q10 09a.[IF YES:]Have you ever visited the garden? 1 -YES 2 -NO ------------>GO TO Q10 9 -OK/REF ------------>GO TO Q10 09b.[IF YES:]About how many times have you visited the Garden during the past six years? ____TIMES 999 -OK/REF 09c.Have you made any changes to your watering or landscaping practices as a result of visiting the Garden? 1 -YES 2 -NO ------------>GO TO Q10 9 -OK/REF ------------>GO TO Q10 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C6 Q9d.[IF YES:]What was the one major change you made? [PROBE FOR AND RECORD ONE.CHANGE] 99 -OK/REF 010.Do you recall having seen or heard any OUTDOOR water usage conservation messages during the past year? 1 -YES 2 -NO ----------••>GO TO Q12 9 -OK/REF ••••--.----->GO TO 012 010a.[IF 010=1:]Where do you recall seeing or hearing these messages most often?[DO NOT READ;PROBE FOR AND RECORD ONLY ONE] 1 -TELEVISION 2 -RADIO 3 -NEWSPAPERS 4 -FRIENDS/FAMILY 5 -WEBSITE OF MY WATER AGENCY 6 -MATERIAL WITH MONTHLY BILL 7 -SDCWA WEBSITE 8 -DO NOT REMEMBER 9 -OTHER,SPECIFY:_ 010b [IF Ql0a >0].Do you remember anything about what these messages said? 1.Yes (please tell us what you remember about the messages) 2.No.I do not remember what the messages said. [ASK Ql1 ONLY IF QS = 1 (HH responsible for landscaping)AND IF Ql0 =YES;IF NOT,GO TO 012] 011.Do you recall the specific steps,if any,that your household has taken during the past year as a direct response to these messages about reducing your outdoor water usage? 1 -YES 2 -Have not taken any specific steps as a response to these messages ----------.->GO TO 012 3 -ALREADY CONSERVING BEFORE MESSAGES ------------>GO TO Q12 9 -OK/REF ---••----.-->GO TO Q12 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C7 011 a.[IF YES:]What is the major step your household has taken to reduce outdoor water usage as a response to these messages? [PROBE FOR AND RECORD ONLY ONE STEP] 99 -OK/REF 012:How would you rate your overall satisfaction with the Otay Water District as your water service provider? 1---Excellent 2---Very Good 3-Good 4---Fair 5-Poor ,6---Very Poor 9-DKIREF 013.Have you ever visited the Otay Water District website? 1 -YES 2 -HAVE ACCESS TO INTERNET,BUT HAVE NOT VISITED WEBSITE ----------------------->GO TO 014 3-00 NOT HAVE ACCESS TO THE INTERNET------------GO TO Q14 9 -OK/REF -----------.:----->GO TO Q14 013a.[IF YES:]How would you rate the website?Would you say... 1 -excellent, 2 -good, 3 -fair,or 4 -poor? 9 -OK/REF 014.These next questions are about recycled water,which is wastewater that has been treated and is used for a variety of purposes other than drinking water.The use of recycled water is another way to increase our water supply.Would you favor or oppose the use of recycled water for the following types of uses... [CLARIFY:]Do you strongly or somewhat {favor/oppose}that? strgly smwt smwt strgly OK! Do you favor or oppose using recycled water...favor favor oppose oppose REF a)for watering landscaping along freeways and golf courses?1 2 3 4 9 b)for industrial processing and manufacturing?1 2 3 4 9 c)for toilet flushing in new office buildings?1 2 3 4 9 d)for recreational lakes?1 2 3 4 9 Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C8 e)for watering landscape and common areas in multi-family housing units?1 2 3 4 9 f)for watering sports fields and parks?1 2 3 4 9 g)for watering residential front yards?1 2 3 4 9 h)as an addition to the supply of drinking water 1 2 3 4 9 If Q14h =1,GO TO Q15-0therwise continue with 14i-1 through 4 014i.Recycled water can receive advanced treatment in the form of additional filtration,reverse osmosis,and chlorination.Would you accept the addition of advanced treated recycled water to supplement the sources of our drinking water if you learned that.. 1.the recycled water would reside for over one year,mixed with other water,in an open reservoir and then be treated again at a water filtration plant? 2.recycled water is currently used to supplement drinking water in other U.S.communities? 3.recycled water could supply as much as 10% of our local drinking water supplies? 4.California's drinking water standards are among the most strict in the nation,and recycled water would be treated to meet those standards? Yes No 2 2 2 2 OK/REF 9 9 9 9 ASK ALL: 015.Would you be in favor of pursuing international agreements with Mexico whereby The United States and Mexico would cooperate to develop and maintain additional supplies of water? 1.Yes 2.No 3.OK/REF 016.Have you called the Otay Water District for service or other help during the past 12 months? 1 -YES 2-NO 9 -OK/REF 016a.[IF YES:]Was the main purpose of your call ... 1 - a repair issue, Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C9 2 - a billing issue,or 3 -another issue?[SPECIFY:]_ 9 -OK/REF In closing,these questions are for comparison purposes only. PPH.How many persons,including yourself,live in your household? 99 -OK/REF TEN.Is your residence owned by someone in your household,or is it rented? 1 -OWN 2 -RENT/OTHER STATUS 9 -OK/REF EOU.What is the highest grade or year of school that you have completed and received credit for... 1 -high school or less, 2 -at least one year of college,trade or vocational school, 3 -graduated college with a bachelor's degree,or 4 -at least one year of graduate work beyond a bachelor's degree? 9 -OK/REF AGE.Please tell me when I mention the category that contains your age... 1 -18 to 24, 2 -25 to 34, 3 -35 to 44, 4 -45 to 54, 5 -55 to 64,or 6 -65 or over? 9 -OK/REF ETH.Which of the following best describes your ethnic or racial background... 1 -white,not of Hispanic origin; 2 -black,not of Hispanic origin; 3 -Hispanic or Latino; 4 -Asian or Pacific Islander; 5 -Native American;or 6 -another ethnic group?[SPECIFY:]_ 9 -OK/REF Otay Water District Survey DRAFT (October 2006) Rea &Parker Research C10 INC.Now,we don't want to know your exact income,but just roughly,could you tell me if your annual household income before taxes is... 1 -under $25,000, 2 -$25,000 up to but not including $50,000, 3 -$50,000 up to (but not including)$75,000, 4 -$75,000 up to (but not including)$100,000,or 5 -$100,000 or more? 9 -OK/REF LAN.[LANGUAGE OF INTERVIEW:] Otay Water District Survey DRAFT (October 2006) Rea &Parker Research 1 -ENGLISH 2 -SPANISH C11 STAFF REPORT AGENDA ITEM 6d November 1,2006TYPEMEETING: SUBMITTED BY: APPROVED BY: (Chief) Regular Board ~ Ro~perger/Marta Riendea~ Rod Posada ~~o~ Chief,Engineering MEETING DATE: C.I.P./ G.F.NO:P2440/ W030131 DIV. NO. 2 APPROVED BY: (Asst.GM): SUBJECT: Manny Magana Assistant General Manager,Engineering and Operations Approve Utility Agreements No.31756 and 31817 with Caltrans for SR 905 Utility Relocations GENERAL MANAGER'S RECOMMENDATION: That the Board authorize the General Manager to execute Utility Agreements No.31756 and 31817 with Caltrans for SR 905 Utility Relocations (See attached Exhibit A for project location,and Exhibit B for Utility Agreements) COMMITTEE ACTION: Please see Attachment A. PURPOSE. To obtain Board authorization to execute Utility Agreements No 31756 and 31817 with Caltrans for relocation of District facilities within SR 905 right-of-way. ANALYSIS· Caltrans is currently in the process of completing land acquisition and design for SR 905 located within Otay Mesa.Part of this process is to relocate existing utilities where conflicts exist.The District's existing pipelines within public streets or easement~will need to be relocated to accommodate the new freeway. Responding to a request from Caltrans,staff submitted claim letters for all five (5)crossings where the District has utility conflicts. Subsequently,the District received notices to relocate.The District has prior and superior rights at each crossing.Utility Agreement~ for four (4)of these crossings,at Gailes Boulevard/Dublin Drive,\\ Pacific Rim Court,Cactus Road,and Airway/Harvest Road have been approved by the Board.The two (2)agreements for relocations at Britannia Boulevard are included in Exhibit B and ready for Board Approval.Caltrans will be performing the relocations at Britannia Boulevard. utility Agreement #31756: The scope of work for Utility Agreement No.31756 includes removing approximately 820 linear feet of 12-inch ACP located in Britannia Boulevard within the SR 905 right-of-way.This relocation is necessary due to the lower finished grade elevations for the proposed freeway. This work also includes installation of approximately 900 linear feet of 12-inch CML&C pipe,and 2,350 20-inch CML&C pipe within the 871 Pressure Zone.This installation will not adversely affect any District customers.Staff will coordinate the necessary short-term shutdowns to minimize the impact on system operations. The calculated depreciation cost for the existing 12-inch ACP and appurtenances is $7,653.The total design and inspection costs to be incurred by the District for this relocation are estimated at $108,956.The estimated construction cost for installing the new 12- inch and 20-inch steel pipe is $1,094,730 and will be performed by Caltrans.However,the relocation includes betterment to the District's facilities by extending outside of the right-of-way and also an increase in size from the existing 12-inch pipeline.The District is responsible for the cost of the betterment estimated to be $809,820.The District has prior rights,therefore Caltrans is responsible for the design,inspection,and construction costs minus depreciation and betterment.The total District's liability for this agreement is $708,517. utility Agreement #31817: The scope of work for Utility Agreement No.31817 includes additional redesign of water plans.This redesign was per Caltrans request.A new storm drain was added which conflicted with the proposed water line after the 100%plans were completed. The total design cost to be incurred by the District for this relocation is estimated at $8,600.The District has prior rights, therefore Caltrans is responsible for cost of the design and, therefore,the total District's liability for this agreement is - $8,600. 2 Overall: The total District's liability is $699,917. Caltrans Responsibility Otay Responsibility Design $86,100.00 DesiQn $8,600.00 Depreciation $7,653.00 Construction $809,820.00 * Inspection $22,856.00 Total $117,556.00 $817,473.00 $699,917.00 *Betterment Cost Consistent with the conditions of all other utility agreements between the District and Caltrans,actual costs may not exceed 125 percent of the estimated cost in the agreement without a revised amendment being executed. FISCAL IMPACT: The approved total budget for CIP P2440 is $2,700,000,as approved in the 2007 budget process.The actual costs paid on this project as of September 19,2006 are $448,400.37.Total expenditures plus outstanding commitment and forecast to date,including this contract, are approximately $1,682,075.Based on the cost analysis performed, staff does not anticipate that a budget increase is necessary. Attachment B is a table of commitments,expenditures,and projected final cost for the project. Finance has determined that 100%of the funding for this project is currently available from the Replacement Fund. During FY 2008 budget cycle,the project's budget will need to be re- evaluated.An increase or decrease will be necessary due to the status of all reimbursement agreements with Caltrans. 3 STRATEGIC GOAL: This project supports the District's Mission statement,"To provide the best quality of water and wastewater services to the customers of Otay Water District,in a professional,effective,efficient,and sensitive manner ...ff 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: Legal counsel reviewed both Utility Agreements for consistency and content. General Manager HJ/RR/RP/jf Attachments P:\WORKING\CIP W440-P2440\Staff Reports\P2440_Staff Report_UA 31756 BD oO-OO-OO.doc 4 ATTACHMENT A Approve Utility Agreements No.31756 and 31817 with Caltrans for SR 905 Utility Relocations COMMITTEE ACTION: The Engineering and Water Operations Committee reviewed this item at a meeting held on October 18,2006.The following comments were made: •The utility agreements are for the relocation of potable and reclaimed lines to accommodate SR 905 . •Utility Agreement 31817 includes additional redesign work of the water plans as requested by CalTrans to accommodate a storm drain. The total cost to the District for this agreement is $8,600 . •Utility Agreement 31756 includes an upgrade to the District's pipeline from 12"to 20"at the District's request.The total cost to the District for this agreement is $708,517 which includes the pipeline upgrade.The upgrade was anticipated in the crp studies and the cost is covered in the crp budget. •These agreements are the last of the SR 905 utility agreements. Upon completion of the discussion,the Committee supported staff's recommendation and forwarding to the Board of Directors on the consent calendar. ATTACHMENT 8 SUBJECi/PRO"JECT:TApp rove utiiityAg~'~~'~~nt s No.31756~~d'"3i8i7··~ithm.........m..; i Caltrans for SR 905 Utility Relocations ! $ Budget 2,260,000.00 Committed Expenditures to Date Outstanding &Forecast ProjectedFinal Cost Vendor/ Comments Updated September 19,2006 Planning Labor $56,363.31 $56,363.31 In house,Sedona Staffing Land Acquisition $15,000.00 $12,000.00 $$12,000.00 Bowen &Associates Land Acquisition $10,575.00 $10,575.00 $$10,575.00 Easement Purchases Legal $35.00 $35.00 Burke,Williams,Sorensen LP Total Planning $25,575.00 $78,973.31 $$78,973.31 Design Consultant $226,900.00 $220,547.03 $6,352.97 $226,900.00 HDR Inc Consultant $67,315.00 $67,315.00 $$67,315.00 Hirsch &Company In House/Labor $129,068.01 $20,000.00 $149,068.01 Advertise &Award $2,587.73 $$2,587.73 OCB,SD Daily,Union Tribune Legal $985.00 $$985.00 Garcia,Calderon,Ruiz Reimbursement $(55,279.38)$$(55,279.38)CalTrans La Media Rd Consultant Reimbursement $(134,435.00)$(134,435.00)UA #31755,31757,31758,31759 Total Design $294,215.00 $365,223.39 $(256,542.03)$108,681.36 Construction In House/Labor $3,244.04 $166,755.96 $170,000.00 Construction Contracts $711,316.00 $$711,316.00 $711,316.00 Zondiros Corporation Accpt/c1ose-out $20,000.00 $20,000.00 Materials $959.63 $$959.63 CW.Mcgrath,HSS Rentx,Penhall Labor Reimbursement $(45,752.00)$(45,752.00)UA #31755,31757,31758,31759 Total Construction Grand Total $ $ 1,723,861.32 $ 2,043,651.32 $ 4,203.67 $ 448,400.37 $ 1,490,216.28 $ 1,233,674.25 $ 1,494,419.95 1,682,074.62 SUBJECT/PROJECT: EXHIBIT A Approve Utility Agreements No.31756 and 31817 with Caltrans for SR 905 Utility Relocations I: i !,;~__,_~~__i ""LONE~§J:dF!.!L_J "TTTlilr- I I i I I Ii!c.Jl..L..1_HiI_---l_-1 SR-905 UTILITY RELOCATIONS Tijuana Estuary VICINITY MAP PROJECT SITE ~~~ t}........._.....iIliiiiiiil.-'-..I.jI-.........liiilllll__.......I~__...I.I.......I.l...iii_iiiiiiI !OTA Y WA TER DISTRICT :; a.i~ 0....---_...._---------------------------------_.....EXHIBIT A EXHIBIT B rSUBJECT/PROJECT:jApprove Utility Agreements No.31756 and 31817 with Caltrans for SR 905 Utility Relocations ~ALlFORNIA.DEPARTMENT OF TRANSPORTATION ,GREEMENT ' I.10/95) Page 1 of 4 Dist Co Rte KP (P.M.)EA 11 SD 905 R9.31R18.62 091821 (R5.81R11.6) Federal Aid No.:A905 (015) Owners File:CU12242 FEDERAL PARTICIPATION:On the Project X Yes gNo On the Utilities [gI Yes D No UTILITY AGREEMENT NO.,__---::;..;31::;..:.7.;:;..56~__DATE ~_ The State ofCalifomia acting by and through the Department ofTransportation,hereinafter called "STATE"proposes to construct a new freeway (Phase 1)in San Diego County in San Diego from 1.1 Ian east ofthe Route 905/805 separation to 0.6 Ian west ofthe Mexico Border and OTAY WATER DISTRICT,hereinafter called "OWNER",owns and maintains water facilities within the limits ofSTATE's project. It is hereby mutually agreed that: I.WORK TO BE DONE Inaccordance with Notice to Owner 31756 dated 1/12/06 STATE shall relocate OWNER's water facilities as shown on OWNER's Plan No.CU12242 dated 12/16/05,which plans are included in STATE's Contract Plans for the improvement of State Route 905,E.A.091824 which,by this reference,are made a part hereof.Deviations from the OWNER's plan described above initiated by either the STATE or the OWNER,shall be agreed upon by both parties hereto under a Revised Notice to Owner.Such Revised Notices to Owner,approved by the STATE and agreed to/acknowledged bythe OWNER,will c,onstitute an approved revision ofthe OWNER's plans described above and are hereby made a part hereof.,No work under said deviation shall commence prior to written execution by the OWNER of the Revised Notice to Owner.Changes in the scope of the work will require an amendment to this Agreement in addition to the revised Notice to Owner.OWNER shall have the right to inspect the work by STATE's contractor during construction.Upon completion ofthe work by STATE,OWNER agrees to accept ownership and maintenance ofthe constructed facilities and relinquishes to STATE ownership ofthe replaced facilities. II.LIABILITY FOR WORK: The existing facilities are lawfully maintained in their present location and qualify for relocation at STATE expense under the provisions ofSection 703 ofthe Streets and Highways Code. III.PERFORMANCE OF WORK: Owner shall have access to all phases ofthe relocation work to be performed by STATE,as described in Section I above,for the purpose ofinspection to ensure that the work is in accordance with the specifications contained inthe Highway Construction Contract;however,all questions regarding the work being performed will be directed to STATE's Resident Engineer for their evaluation and final disposition. I II UTILITY AGREEMENT (Cant.) RW 13-5 (Rev.10/95) IV.PAYMENT FORWORK: Page 2 of4 IUTILITY AGREEMENT NO.31756 The STATE shall pay its share of the actual cost ofthe herein-described work within 90 days after receipt offive (5) copies of OWNER's itemized bill in quintuplicate,signed by a responsible official ofOWNER's organization and prepared on OWNER's letterhead,compiled on the basis ofthe actual and necessary cost and expense.The OWNER shall maintain records ofthe actual costs incurred and charged or allocated to the project in accordance 'with recognized accounting principles.The OWNER's billing cost to STATE is $92,703.00. The State shall performthe work under Section I above at no expense to OWNER except as hereinafter provided.It is understood that the relocation as herein contemplated includes betterment to OWNER's facilities by reason of increased capacity in the estimated amount of$809,820.00,said amount to be deposited upon demand inthe San Diego Office ofthe Department ofTransportation,prior to the time that the subject freeway contractbid is opened by the STATE.The fmal betterment payment shall be calculated based upon the actual quantities installed as determined by the STATE's engineer,and the current cost data as determined from the records ofthe OWNER.In addition,the OWNER shall credit the STATE at the time ofthe final billing for all the accrued depreciation and the salvage value ofany material or parts salvaged and retained by OWNER. Notmore frequently than once a month,but at least quarterly,OWNERwill prepare and submit progress bills for costs incurred not to exceed OWNER's recorded costs as ofthe billing date less estimated credits applicable to completed work.Payment ofprogress bills not to exceed the amount ofthis Agreement may be made under the terms ofthis Agreement.Payment ofprogress bills which exceed the amount ofthis Agreementmay be made after receipt and approval by STATE ofdocumentation supporting the cost increase and after an Amendment to this Agreement has been executedby the parties to this Agreement. The OWNER shall submit a final bill to the STATE within 360 days after the completion ofthe work described in Section I.above.Ifthe STATE has not received a final bill within 360 days after notifiction ofcompletion of OWNER's work described in Section I.ofthis Agreement,and STATE has delivered to OWNER fully executed Director's Deeds,Consents to Common Use or Joint Use Agreements as required for OWNER's facilities,STATE will provide writtennotification to OWNER ofits intent to close its file within 30 days and OWNERhereby acknowledges,to the extent allowed by law,that all remaining costs will be deemed to have been abandoned.If the STATE processes a final bill for payment more than 360 days after notification ofcompletion ofOWNER's work, payment ofthe late bill may be subject to allocation and/or approval by the California Transportation Commission. The final billing shall be inthe form ofan itemized statement ofthe total costs charged to the project,less the credits provided for in this Agreement,and less any amounts covered by progress billings.However,the STATE shall not pay final bills which exceed the estimated cost ofthis Agreement without documentation ofthe reason for the increase ofsaid cost from the OWNER and approval ofdocumentation by STATE.Except,ifthe final bill exceeds the OWNER's estimated costs solely as the result ofa revised Notice to Owner as provided for in Section I,a copy ofsaid revised Notice to Owner shall suffice as documentation.In either case,payment of the amount over the estimated cost ofthis Agreement may be subject to allocation and/or approval by the California Transportation Commission. In any event ifthe final bill exceeds 125%ofthe estimated cost ofthis agreement,an Amended Agreement shall be executed by the parties to this Agreement prior to the payment ofthe OWNER's final bill.Any and all increases in costs that are the direct result ofdeviations from the work described in Section I ofthis Agreement shall have the prior concurrence ofSTATE. Detailed records from which the billing is compiled shall be retained by the'OWNER fOf a period ofthree years from the date ofthe final payment and will be available for audit by State and/or Federal auditors.Owner agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR,Chapter 1,Part 31,et seq.,23 CFR, Chapter 1,Part 645 and/or 18 CFR,Chapter 1.Parts 101,210,et al.Ifa subsequent State and/or Federal audit determines payments to be unallowable,OWNERagrees to reimburse STATE upon receipt ofSTATE billing. UTILITY AGREEMENT (Cant.) RW 13-5 (Rev.10/95) V.GENERAL CONDITIONS: Page 3 of4 I UTILITY AGREEMENT NO.31756 All costs accrued by OWNER as a result ofSTATE's request ofJune 15,2004 to review,study and/or prepare relocationplans and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions ofthis Agreement. If STATE's project which precipitated this Agreement is canceled ormodified so as to eliminate the necessity of work by OWNER,STATE will notify OWNERin writing and STATE reserves the right to terminate this Agreementby Amendment.The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations ofSTATEunder the terms of this Agreement are subject to the passage ofthe annual Budget Act by the State Legislature and the allocation ofthose fund~by the California Transportation Commission. OWNER shall submit a Notice ofCompletion to the STATE within 30 days ofthe completion ofthe work described herein. It is understood that said highway is a Federal aid highway and accordingly,23 CFR,Chapter 1,Part 645 is hereby incorporated into this Agreement. **** UTILITY AGREEMENT (Cant.) RW 13-5 (Rev.10/95) Page 4 of 4 IUTILITY AGREEMENT NO.31756 THE ESTIMATED COST TO STATE FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $377,613.00 CERTIFICATION OF FUNDS I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose ofthe expenditure shown here. 4r,,~/"'JO...2£J4C I /HQ Accounting Officer Date 1/ITEM CHAP STAT FY AMOUNT ,?~tJ.r!Ndy!9o?-.J7 ,zat:JJ t?~~~?tJg.eJC>c»4t1 -,u> FUND TYPE EA AMOUNT Design Funds $ Construction Funds 091824 $284,910.00 RWFunds 091829 $92,703.00 IN WITNESS WHEREOF,the above parties have executed this Agreement the day and year above written. OWNER:OTAY WATER DISTRICT By --,-----:=:-:,-----~__::_---- Name/Title Date BY~~tJJoGDebieRodriguezIt Utility Coordinator Date DO NOT WRITE BELOW -FOR ACCOUNTING PURPOSES ONLY EA FUNDING VERIFIED: Sign:> Print> Date Sign> Print> Debbie Rodriguez Utility Coordinator Date Distribution:3 originals to R/W Program Accounting &Analysis 3 originals returnedto RIW Planning &Management STATE OF CALIFORNIA.DEPARTMENT OF TRANSPORTATION UTILITY AGREEMENT RW 13-5 (Rev.10/95) Page 1of4 Dist Co Rte KP (P.M.)EA 11 SD 905 R9.31R18.62 091821 (R5.8/R11.6) Federal Aid No.:N/A Owners File: FEDERAL PARTICIPATION:On the Project X Yes g No On the Utilities 0 Yes [8J No UTILITY AGREEMENT NO.__.......;;;..;31;;;..;;;8;..;;;.17..:.--_DATE -,--_ The State ofCalifornia acting by and through the Department ofTransportation,hereinafter called "STATE"proposes to construct a new freeway (Phase 1)in San Diego County in San Diego from 1.1 km east ofthe Route 905/805 separation to 0.6 km west ofthe Mexico Border and 01'AY WATER DISTRICT,hereinafter called "OWNER",owns and maintains water facilities within the lirnits ofSTATE's project. It is hereby mutually agreed that: I.WORK TO BE DONE In accordance with direction by State in April 2006,OWNER began revised utility design activities required to accommodate State's proposed highway improvement project pursuant to the terms and conditions ofthis Agreement. II.LIABILITY FOR WORK: Owner completed the redesign for the relocation ofthe 12-inch water line that was in conflict with the construction of Route 905 Britannia Boulevard drainage facilities.The previous design is wasted/useless work and State has 100% liability for the expense ofthis design. III.PERFORMANCE OF WORK: Owner agreed to perform the herein-described work with its own forces or to cause the herein-described work to be performed bythe OWNER's contractor,employed by written contract on a continuing basis to perfOlID work ofthis type,and to provide and finnish all necessary labor,materials,tools and equipment required therefore,and to prosecute said work diligently to completion. Pursuant to Public Works Case No.2001-059 determination by the California Department ofIndustrial Relations dated October 25,2002,work performed by OWNER's contractor is a public work under the definition ofLabor Code section 1720(a)and is therefore subject to prevailing wage requirements.OWNER shall verify compliance with this requirement in the administration ofits contracts reference above. UTILITY AGREEMENT (Cont.) RW 13-5 (Rev.10/95) IV.PAYMENT FOR WORK: Page 2of4 I UTILITY AGREEMENT NO.31817 The STATE shall pay its share ofthe actual cost ofthe herein-described work within 90 days after receipt of OWNER's itemized bill in quintuplicate,signed by a responsible official ofOWNER's organization and prepared on OWNER's letterhead,compiled on the basis ofthe actual and necessary cost and expense.The OWNER shall maintain records ofthe actual costs incurred and charged or allocated to the project in accordance with recognized accounting principles.The OWNER's billing cost to STATE is $8,600.00. The OWNER shall submit a final bill to the STATE within360 days after the completion of the work described in Section 1.above.Ifthe STATE has not received a [mal bill within 360 days after notifiction of completion of OWNER's work described in Section 1.ofthis Agreement,and STATE has delivered to OWNER fully executed Director's Deeds,Consents to Common Use orJointUse Agreements as required for OWNER's facilities,STATE will provide written notification to OWNER ofits intent to close its file within 30 days and OWNER hereby acknowledges,to the extentallowed by law,that all remaining costs will be deemed to have been abandoned.Ifthe STATE processes a final bill for payment more than 360 days afternotification ofcompletion ofOWNER's work, payment ofthe late bill may be subject to allocation and/or approval by the California Transportation Commission. The [mal billing shall be in the form ofan itemized statement ofthe total costs charged to the project,less the credits provided for in this Agreement,and less any amounts covered by progress billings.However,the STATE shall not pay final bills which exceed the estimated cost ofthis Agreement without documentation ofthe reason for the increase ofsaid cost from the OWNER and approval ofdocumentation by STATE.Except,ifthe final bill exceeds the OWNER's estimated costs solely as the result of a revised Notice to Owner as provided for in Section I,a copy of said revised Notice to Owner shall suffice as documentation.In either case,payment of the amount over the estimated cost ofthis Agreement may be subject to allocation and/or approval by the California TranspOliation Commission. In any event ifthe final bill exceeds 125%ofthe estimated cost ofthis agreement,an Amended Agreement shall be executed by the parties to this Agreement prior to the payment ofthe OWNER's final bill.Any and all increases in costs that are the direct result of deviations from the work described in Section I ofthis Agreement shall have the prior concurrence ofSTATE. Detailed records from which the billing is compiled shall be retained by the OWNER for a period ofthree years from the date ofthe final payment and will be available for audit by State and/or Federal auditors.Owner agrees to comply with Contract Cost Principles and Procedures as set forth in 48 CFR,Chapter 1,Part 31,et seq.,23 CFR Chapter 1,Part 645 and/or 18 CFR,Chapter 1,Parts 101,201,et a1.Ifa subsequent State and/or Federal audit determines payments to be unallowable,OWNER agrees to reimburse STATE upon receipt ofSTATE billing.. V.GENERAL CONDITIONS: All costs accrued by OWNER as a result of STATE's request ofJune 15,2004 to review,study and/or prepare relocation plans and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions ofthis Agreement. UTILITY AGREEMENT (Cant.) RW 13-5 (Rev.10/95) V.GENERAL CONDITIONS:(Continued) Page 3 of4 I UTILITY AGREEMENT NO.31817 IfSTATE's project which precipitated this Agreement is canceled or modified so as to eliminate the necessity of work by OWNER,STATE will notify OWNER in Writing and STATE reserves the right to terminate this Agreement by Amendment.The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement. All obligations ofSTATE under the terms ofthis Agreement are subject to the passage ofthe annual Budget Act by the State Legislature and the allocation ofthose funds by the California Transportation Commission. OWNER shall submit a Notice ofCompletion to the STATE within 30 days ofthe completion of the work described herein. **** UTILITY AGREEMENT (Cent.) RW 13-5 (Rev,10/95) Page 4 of 4 I UTILITY AGREEMENT NO.31817 THE ESTIMATED COST TO STATE FOR ITS SHARE OF THE ABOVE DESCRIBED WORK IS $=8,=60=0'-'-',0"-"0 _ CERTIFICATION OF FUNDS Ihereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure shown here. rd~~d.-~~tJ(. li\YAccounting Officer Date ITEM CHAP STAT FY AMOUNT ~'O ..8o/~PlPf.V <t~CUi"~tt61 ~Joa.04~d~~,ItO FUND TYPE EA AMOUNT Design Funds $ Construction Funds $ RWFunds 091829 $8,600.00 STATE: IN WITNESS WHEREOF,the above parties have executed this Agreement the day and year above writtern OWNER:OTAY WATER DISTRICT By ----c=:---------------- Name/Title Date By ~~m~-::::..-.f::t~~~+_-Ll_J_J..f_~1--­ Debbie Rodriguez Utility Coordinator DO NOT WRITE BELOW -FOR ACCOUNTING PURPOSES ONLY Distribution:3 originals to RlW Program Accounting &Analysis 3 originals returned to R/W Planning &Management Sign> Print> Debbie Rodriguez Utility Coordinator Date STAFF REPORT AGENDA ITEM 6e November 1,2006TYPEMEETING: SUBMITTED BY: APPROVED BY: (Chief) Regular Board ~ Ron ~erger/David Padilla Rod Posada ~'i)b~<t}. Chief,Engineering MEETING DATE: C.LP./ G.F.NO: W258 WO 8696 DIV NO.2 APPROVED BY: (Asst GM): SUBJECT: Manny Magana Assistant General Manager,Engineering and Operations Award a Construction Contract for the Lower Otay Pump Station Access Road (CIP P2258) GENERAL MANAGER'S RECOMMENDATION: That the Board of Directors award a construction contract to Koch- Armstrong General Engineering,Inc.,in the amount of $76,800.00,for the Lower Otay Pump Station Access Road (see Exhibits A and B for project location). COMMITTEE ACTION: Please see Attachment A. PURPOSE: To obtain Board approval for award of a construction contract for the Lower Otay Pump Station Access Road ANALYSIS: The Lower Otay Pump Station Access Road is needed to provide all- weather access to the temporary pumping facility and the future (permanent)facility known as the Lower Otay Pump Station (LOPS) Interconnection project.The access road will consist of approximately 500 feet of paved road having a width of 16 to 24 feet. The road will provide safe access for refueling of the temporary pumping facility and will reduce maintenance performed on the existing,unpaved access road by District personnel. District staff performed the design of the access road and developed the bid documents.The project was advertised for bid on September 18,2006 and bids were opened on October 10,2006 with the following results: ENGINEER'S ESTIMATE CONTRACTOR Koch-Armstrong General Engineering,Inc. SRM Contracting and Paving,Inc. Frank &Son Paving,Inc. NPG Corporation M & M Gen.Engr.,Inc. Daley Corporation New Century Construction,Inc. Kirk Paving,Inc. J.D.Paving,Inc. $98,800 TOTAL BID $76,800.00 $82,475.00 $83,700.00 $88,888.00 $89,800.00 $90,450.00 $94,400.00 $109,880.00 $125,167.60 Staff reviewed the bids submitted for conformance with the contract requirements and determined that Koch-Armstrong General Engineering, Inc.was the lowest responsive and responsible bidder.Koch- Armstrong General Engineering,Inc.holds a valid General Engineering Class A Contractor's License.Reference checks indicated an excellent performance record on similar projects and that all agencies contacted would hire Koch-Armstrong General Engineering, Inc.for future projects.Per the public competitive bidding process,staff recommends award of the contract to Koch-Armstrong General Engineering,Inc.in the amount of $76,800.00. Staff recommends approval of this contract in order to provide safe and reliable access to the temporary pumping facility during periods of inclement weather and to reduce maintenance performed by District personnel on the eXi~.:.i~aved access road. FISCAL IMPACT: Funds for the Lower Otay Pump Station Access Road are available within the Lower Otay Pump Station (LOPS)Interconnection project capital improvement program budget.The approved total budget for LOPS (CIP P2258/W258)is $7,805,0·00.Total commitments and expenditures as of September 27,2006 are approximately $1,962,000. Total expenditures,plus outstanding commitment and forecast to date, including this contract and District inspection fees,are approximately $2,048,800.Based on the cost analysis performed, staff does not anticipate that a budget increase is necessary. Attachment A is a table of commitments,expenditures,and projected final cost for the project. Finance has determined that 100%of the funding for this project is currenly available from the Expansion Fund. 2 STRATEGIC GOAL: This project supports the District's Strategic Goal to "Operate and maintain water services infrastructure."The project also supports the District's Agreement with the City of San Diego to purchase water from the Otay Water Treatment Plant. LEGAL IMPACT: The existing Right of Entry Permit between the City of San Diego and the District that was executed for construction of the temporary pumping facility will be amended to include the proposed paving and to allow long-term access through the City's property for District operations.All other terms of the Permit will remain in effect. Staff has submitted an Encroachment Permit Application for portions of the existing temporary pumping facility and portions of the proposed contract work that are located on City of Chula Vista property in lieu of acquiring a temporary easement.This is consistent with the recommendation of City of Chula Vista real property staff.Approval of the encroachment permit by the City of Chula Vista is pending. DP/RR/RP:jf Attachments P:\WORKING\CIP W258\WO 8696\Staff Reports\Bd 11-01-06,Access Road.doc 3 ATTACHMENT A ISUBJECTlpR6JECT~Lower Otay Pump Station Access Road CIP P2258/W258 W.O.8696 COMMITTEE ACTION: The Engineering and Water Operations Committee reviewed this item at a meeting held on October 18,2006.The following comments were made: •It was indicated that an access road is required to the temporary pumping facility and the future facility of the Lower Otay Pump Station to provide safe access for the refueling of the temporary pumping facility. •The access road would be 500 feet in length and 16 to 24 feet in width.It is expected that the project would commence sometime in late November and would be completed in approximately two weeks from the start date. •Koch-Armstrong General Engineering,Inc.was the lowest responsive bidder and their references have checked out.Staff recommends awarding the contract to Koch-Armstrong General Engineerfng,Inc. Upon completion of the discussion,the Committee supported staff's recommendation and forwarding to the Board of Directors on the consent calendar. ATTACHMENT B fSUBJECT7PR6JE"cT:r·i·;~·~r Otay Pump Station AccessR;~d···· i erp P2258/W258 w.o.8696 ~".,..1 . Otay Water District P2258 -Lower Otay Pump Station Date Updated:October 10,2006 Expenditures Outstanding ProjectedFinal Vendor/ Budget Committed to Date &Forecast Cost Comments $7,805,000.00 Planning Studies $166,000.00 $166,000.00 Labor $- Environmental $- Land Acquisition $- Preliminary Design $- Total Planning $-$166,000.00 $-$166,000.00 Design Consultant $638,000.00 $638,000.00 In House/Labor $705,000.00 $21,000.00 $726,000.00 Advertise &Award $1,000.00 $10,000.00 $11,000.00 Total Design $-$1,344,000.00 $31,000.00 $1,375,000.00 Construction In House/Labor $10,000.00 $452,000.00 $240,000.00 $692,000.00 Construction Contracts $76,800.00 $4,950,000.00 $4,950,000.00 Construction Manager $545,000.00 $545,000.00 AccpUciose-out $22,000.00 $22,000.00 Total Construction $86,800.00 $452,000.00 $5,757,000.00 $6,209,000.00 Grand Total $86,800.00 $1,962,000.00 $5,788,000.00 $7,750,000.00 IMPERIAL BEACH VICINTIY MAP SCALE:1"=1,500' PROJECT SITE OWD 30" INTERCONNECT PIPELINE DTAY WATER DISTRICT LOWER OTAY PUMP STATION PERMANENTACCESSPLAN EXHIBIT B..., APN :;!g E:. +~'~l ",::-~=~=:~:~=~=~=~_::::~::~-----------------------1~~~ I _:~~~~~::]~~~~~~;~:__~~~~~~~EX~~'S:T'N~C~E~'~S("~ENT_U:N:E ~_~j _ i LEGEND ~PROPoSED A~C~~~~~1 •~~~sg ~AI.(D .CAD TENP""AR'PIP(~~-'5'.,DE '.O<>OSED P,VEIl .OADi 0: STAFF REPORT AGENDA ITEM 6f November I,2006TYPEMEETING: SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Ass!.GM): Regular Board Jim peaSley~1l( Rod Posada ~~o~ Manny Magana MEETING DATE: W.O./G.F.NO:30096 DIV. NO. N/A SUBJECT:Otay 14 Flow Control Facility Modifications Agreement Execution Authorization GENERAL MANAGER'S RECOMMENDATION: That the Board of Directors authorize the General Manager to execute the Agreement Between the San Diego County Water Authority (Water Authority)and the Otay Water District (Otay) for Design,Construction,Operation,and Maintenance for the Otay 14 Flow Control Facility Modifications (Otay 14 FCF Agreement)contingent upon Water Authority Board of Directors approval of substantially the same.The Water Authority staff plans to present for approval the Otay 14 FCF Agreement at their November 30,2006 Board meeting. COMMITTEE ACTION: Please see Attachment A. PURPOSE: The Board of Directors of the Water Authority and Otay authorized the General Managers of each agency to execute the East County Regional Treated Water Improvement Program (ECRTWIP) agreement between the Water Authority and Otay.Implementation of the ECRTWIP Agreement will significantly improve the local water treatment capacity in East County. The ECRTWIP Agreement obligates the Water Authority and Otay to enter into a subsequent agreement to establish terms and conditions to modify the existing Otay 14 FCF to increase its capacity to 16 million gallons per day (MGD).The ECRTWIP Agreement established that the Water Authority and Otay will 'pay equal shares for the cost to modify Otay 14 FCF. ANALYSIS: In May 2004,the Water Authority adopted its Regional Water Facilities Master Plan (Master Plan)identifying infrastructure needs to the year 2030.One element of the Water Authority Master Plan includes the expanded utilization of local water treatment plants owned and operated by member agencies. The Board of Directors of the Water Authority,Helix,Padre Dam, Otay,and Lakeside each has approved binding ECRTWIP Agreements. With implementation of these ECRTWIP agreements,each agency commits to certain capital improvements and/or guaranteed usage levels. The primary terms of the Otay 14 FCF Agreement (Attachment B) are as follows:. •Otay 14 FCF to have 16 MGD of capacity supplied from the Helix Levy Water Treatment Plant (WTP). •Water Authority to design,construction,own,operate,and maintain the Otay 14 FCF. •Water Authority and Otay to 50%cost share the expansion and modification of Otay 14 FCF from 8 MGD to 16 MGD. With implementation of the ECRTWIP and Otay 14 FCF Agreements the following primary objectives of Otay for the North District are met: 1.Acquire local water system capacity to access the regions raw water supply,transmission,storage,and treatment systems for the North District. 2.Acquire an alternative supply source to sustain a minimum of ten (10)continuous day's outage of Pipeline No.4. Following Otay and Water Authority Board approval of the Otay 14 FCF Agreement and the implementation of both the ECRTWIP and Otay 14 FCF Agreements,Otay will have a significant alternative water supply resource for 12 MGD of on-peak and 16 MGD of off- peak treated water supply capacity from the Helix Levy WTP. FISCAL IMPACT:~ The total budget for CIP P2009 is $18,490,000,of which $700,000 is earmarked to fund the Otay 14 FCF obligation,as approved"by the Board in the 2007 budget process.The CIP P2009 project budget is to fund the 36-inch pipeline from Otay 14 FCF to the Regulatory Site and the Otay 14 FCF modification expenses.The 2 Otay 14 FCF modification is estimated by the Water Authority to cost $1,240,000.The Water Authority and Otay will equally share the actual total cost.Hence,the total estimated obligation to Otay for Otay 14 FCF modifications is estimated to be $620,000.The actual costs paid against CIP P2009 as of September 6,2006 are $165,451 Total expenditures and commitments,including the Otay 14 FCF Agreement,are approximately $2,119,259.Based on the cost analysis performed, staff does not anticipate that a budget increase is necessary. Attachment C is a table of commitments,expenditures,and the projected final cost for CIP P2009. Finance has determined that 100%of the funding will be available from the Expansion Fund. STRATEGIC GOAL: The ECRTWIP and Otay 14 FCF Agreements support the Otay WD'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: Attachments JP/RP/MM:jfp 3 PROJECT: ATTACHMENT A rSUBjEICTjiPR:6jECT:ToO,tt.~a~·y~14 Flow Control Facility Modifications Agreement Execution Authorization W.O.No.30096 .......................................................................................................................................................................................................................................................................................................................... COMMITTEE ACTION: The Engineering and Water Operations Committee reviewed this item at a meeting held on October 18,2006.The following comments were made: • .The board had approved the East County Regional The board had approved the East County Regional Treated Water Improvement Program (ECRTWIP)agreement in November of last year. •The ECRTWIP agreement obligates eWA and Otay to enter into a subsequent agreement to establish terms and conditions to modify the existing Flow Control Facility 14 (FCF 14)to increase its capacity from 8 MGD to 16 MGD.The cost of the modification would be shared equally between the agencies. •It was noted that the board approved the design of the modification to FCF 14 at the October board meeting. •The cost for the modification has been budgeted within the eIP and is estimated at approximately $700,000.Staff expects that it will come in slightly lower than the estimate. Upon completion of the discussion,the Committee supported staff's recommendation and forwarding to the Board of Directors on the consent calendar. 4 DRAFT ATTACHMENT B Agreement Between San Diego County Water Authority and Otay Water District for Design,Construction,Operation,and Maintenance ofthe Otay 14 Flow Control Facility Modifications This Agreement is made and entered into as of ,2006,between the San Diego County Water Authority,a county water Authority (Water Authority),and Otay Water District,a water district established under the Municipal Water District Law of1911,(Otay)(collectively,the Parties) in view ofthe following facts: RECITALS: A.Otay is a member agency ofthe Water Authority and currently distributes and sells retail water supplied by the Water Authority. B.Water Authority currently meters and controls the delivery oftreated water from Otay 8 Flow Control Facility (Otay 8 FCF)and Otay 14 Flow Control Facility (Otay 14 FCF)to the Otay system via the existing La Mesa Sweetwater Extension (LMSE).Otay 14 FCF Notice of Completion was filed October 30,2003 and Otay 14 FCF Modifications were approved by Water Authority Board of Directors on February 23,2006 as part ofthe East County Regional Treated Water Improvements Program Implementation Agreements. C.Water Authority is obligated,pursuant to the Agreement Between Otay Water District and San Diego County Water Authority for Construction,Operation,and Maintenance of Otay 14 Flow Control Facility,dated August 13,2002 (Otay 14 Agreement)and in accordance with the 1976 Water Authority policy regarding treated water service,to provide 8 mgd service to Otay,at no additional capital cost to Otay. D.Otay 14 Agreement provides (a)that improvement costs in the LMSE and Helix Flume pipeline (Flume)associated with providing flows above 8 mgd are the responsibility ofOtay,and (b)that arrangements for future service capacity increases may be made either by an amendment of that agreement or by a separate agreement. E.Water Authority wishes to transfer the existing Otay 8 FCF capacity of4 mgd for its own convenience to the existing location ofOtay 14 FCF at 290 South Third Street,El Cajon. F.A test ofthe LMSE flow capacity was made in April 2005.The results indicate that the maximum flow that can betransmitted to Otay via LMSE in its existing'condition is 6.2 mgd. G.Otay wishes to increase its service capacity at the Otay 14 FCF location to a new total ofat least 12 mgd ofon-peak capacity and 16 mgd ofoff-peak capacity.Otay and the Water Authority will pay for all costs associated with the increased flow capacity as per the terms ofthe Agreement Between The San Diego County Water Authority and Otay Water District Regarding Implementation ofthe East County Regional Treated Water Improvement Program,dated April 27,2006 (East County Agreement). 1 C:\Outlook Temp\Agreement-OtayI4FCFMod 10-11-06-clean.doc FileNo.:0720.01-002.1 DRAFT NOW THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1 Delivery ofWater to Otay 1.1 The Water Authority hereby agrees to deliver and sell and Otay hereby agrees to purchase a minimum of 10,000 acre-feet of treated water per calendar year via an upgraded permanent,metered, service connection to remain known as Otay 14 FCF as per the East County Agreement. 1.2 Availability,delivery,rate offlow,·and cost oftreated water to be sold by the Water Authority to Otay shall be as established by the Board ofDirectors ofthe Water Authority in accordance with the Water Authority's Administrative Code,on the same basis as generally applicable to the Water Authority's member agencies. 1.3 Otay's points ofdelivery will remain at Otay 8 FCF and Otay 14 FCF until such time as the modifications to Otay 14 FCF begin.During construction ofOtay 14 FCF Modifications,Otay's point ofdelivery will be Otay 8 FCF.No planned outage ofOtay 8 FCF or LMSE is planned during the construction of the Otay 14 FCF Modifications.IfLMSE is shutdown in conjunction with the construction ofOtay 14 FCF Modifications,shutdown will not exceed 24 hours.Once the Water Authority is delivering and selling treated water to Otay through the modified Otay 14 FCF,and upon completion ofthe Los Coches Pump Station,the 48-inch Flume Improvement Project and the Otay 14 to Regulatory Reservoir Pipeline Improvement project,delivery and sale oftreated water through Otay 8 FCF will cease.The Los Coches Pump Station and the 48-inch Flume Improvement Project are to be completed by Helix Water District no later than February 1,2008 as per the terms of the East County Agreement.The LMSE shall remain in operation for treated water service until Otay's completion ofthe Otay 14 to Regulatory Reservoir Pipeline Improvement project is placed in service,which is no later than March 1,2010. 1A The Water Authority currently provides a connection for telemetry signals ofOtay 14 FCF flow rate, upstream pressure,and downstream pressure to Otay.These signals will continue to be provided to Otay upon completion ofthe Otay 14 FCF Modifications.Otay will connect at their expense. 2 Facility Design and Construction 2.1 Otay 14 FCF Modifications will be designed and constructed to Water Authority standards. 2.2 Otay 14 FCF Modifications will be designed and constructed to deliver up to 16 mgd oftreated water capacity to the Otay water system.The Water Authority will bear all costs associated with the improved capacity from 8 mgd to 12 mgd,and this shall serve as full compensation to Otay for the abandonment ofOtay 8 FCF.Otay shall bear all costs associated with the capacity increase from 12 mgd to 16 mgd. 2.3 Otay 14 FCF Modifications will be constructed using the existing Otay 14 FCF structure and site. 2 C:\Outlook Temp\Agreement-OtayI4FCFMod 10-II-06-clean.doc File No.:0720.01 -002.1 DRAFT 2.4 It is anticipated that the Otay 14 FCF Modifications will be completed prior to the completion ofthe Otay 14 to Regulatory Reservoir Pipeline Improvement project.Otay 14 FCF Modifications design, construction,and operational schedule is anticipated to be as follows. The Otay 14 FCF Modifications design shall be complete no later than June 30,2008. The Otay 14 FCF Modifications construction shall be complete no later than June 30,2009. The Otay 14 FCF Modifications shall be operational no later than March 1,2010. 3 Facility and Access Right-of-Way 3.1 Otay 14 FCF Modifications will be on property located at 290 South Third Street,El Cajon, northwest ofthe intersection ofLexington Avenue and South Third Street in the City ofEl Cajon as shown on Exhibit A attached hereto and by reference made a part ofthis Agreement.This property is owned in fee by the Water Authority.Facility access will be from public streets. 4 Otay Will Perform the Following: 4.1 Otay will design,construct or cause to be constructed a new 36-inch pipeline from Otay 14 FCF to its Regulatory Reservoir Site to be know as the Otay 14 to Regulatory Reservoir Pipeline Improvement project.The Otay 14 to Regulatory Reservoir Pipeline Improvement project will be constructed to a defined point ofconnection,as shown on Exhibit B attached hereto and by reference made a part ofthis Agreement.The Otay 14 to Regulatory Reservoir Pipeline Improvement project will terminate the use ofLMSE turnout.Otay to install a blind flange or other type ofconnection,as directed by the Water Authority,at the property line. 4.2 Otay shall assume the lead agency role for environmental and permit compliance for this construction as per the East County Agreement.The Water Authority shall grant to Otay property rights as per the East County Agreement.The Otay 14 to Regulatory Reservoir Pipeline Improvement project will be completed no later than March 1,2010. 4.3 Otay will review and provide written comments on all studies,reports,construction contract,etc., produced by the Water Authorityrelated to Otay 14 FCF Modifications within 20 working days of receipt. 4.4 During construction ofOtay 14 FCfModifications,Otay will review and provide written comments and approval ofconstruction change orders prior to authorization within five working days of receipt. 4.5 Otay's review and approval ofstudies,reports,construction contract,change orders,etc.shall not be unreasonable delayed or withheld. 4.6 Otay will assign a project manager to participate in the consultant selection process and will be the Water Authority's single point ofcontact. 4.7 Otay will provide the Water Authority,for review and comment,two hard copies and one electronic copy of the construction drawings and specifications for the Otay 14 to Regulatory Reservoir 3 C:\Outlook Temp\Agreement-OtayI4FCFMod 10-11-06-clean.doc File No.:0720.01 -002.1 DRAFT Pipeline Improvement project.Water Authority shall determine the type ofconnection.Point of connection is as shown on Exhibit B. 4.8 Otay will be required to coordinate with the Water Authority for inspection and shutting down of Otay 14 FCF and the LMSE in order to perform the connection between the Otay 14 to Regulatory Pipeline Improvement project and Otay 14 FCF. 4.9 Otay will provide to the Water Authority electronic record drawings in AutoCad format ofthe Otay 14 to Regulatory Reservoir Pipeline Improvement project. 5 The Water Authority Will Perform the Following: 5.1 The Water Authority will develop a Request for Proposal~and select a consultant to provide the preliminary design,final design,and construction support services for the Otay 14 FCF Modifications. 5.2 The Water Authority will assign a project manager for the Otay 14 FCF Modifications who will be Otay's single point ofcontact. 5.3 The Water Authority will conduct a public bid,prepare addendum and change orders,and construct or cause to be constructed the Otay 14 FCF Modifications to a defined point ofconnection to the Otay 14 to Regulatory Reservoir Pipeline Improvement project to be constructed by Otay in South Third Street,all as shown on Exhibit B 5.4 During construction ofthe Otay 14 FCF,the Water Authority shall provide written construction contract change orders for Otay's review,comment,and approval prior to authorization ofthe changed construction work to the contractor.Otay's approval shall not be umeasonable delayed or withheld. 5.5 The Water Authority will provide to Otay electronic record drawings in AutoCad format ofthe Otay 14 FCF Modifications. 5.6 The Water Authority will provide Otay,for review and comment,two hard copies and one electronic copy,ofthe design report,construction drawings,specifications,construction contract change orders, and the construction cost estimates. 6 Ownership and Operational Control ofFacilities: 6.1 The Water Authority will own,maintain,and operate all components ofOtay 14 FCF,including inlet and outlet piping,within the Water Authority property line ofthe Otay 14 FCF site. 6.2 Otay will own,maintain,and operate the Otay 14 to Regulatory Reservoir Pipeline Improvement project and connection piping outside the Water Authority property line of Otay 14 FCF site from a defined point ofconnection,as shown on Exhibit B. 4 C:\Outlook Temp\Agreement-Otay14FCFMod 10-11-06-clean.doc FileNo.:0720.01-002.1 DRAFT 6.3 In accordance with current Water Authority Board policy,all operation and maintenance costs shall be borne by the Water Authority.atay acknowledges the right ofthe Water Authority's Board to revise the policy to recover future operation and maintenance costs. 7 Calculation and Payment ofCosts: 7.1 Otay will pay 50 percentand the Water Authority will pay 50 percent ofall actual costs incurred including public outreach,preliminary design,final design,construction,and construction support of Otay 14 FCF Modifications,in accordance with Exhibit C attached hereto and by reference made a part ofthis Agreement. 7.2 The Water Authority will pay all costs related to atay 8 FCF capacity transfer to Otay 14 FCF. 7.3 IfOtay decides to cease Otay 14 FCF Modifications at any time during design or construction,atay will reimburse the Water Authority for all costs incurred for Otay 14 FCF Modifications through the date ofnotification. 7.4 Deposits and final accounting will be conducted based on the following schedules.The cost items for each phase are shown on Exhibit C. 7.5 Deposit Schedule.Exhibit C demonstrates the estimated costs and payment in association with all costs for design and construction of Otay 14 FCF Modifications.atay will make deposits with the Water Authority in the amounts shown on Exhibit C,based on the following milestones. 7.5.1 Phase I:Deposit within 30 calendar days ofthe full execution ofthis Agreement. 7.5.2 Phase II:Deposit within 30 calendar days ofthe Water Authority Board awarding the construction contract for Otay 14 FCF Modifications. 7.6 Project Cost Accounting.Otay 14 FCF Modifications cost accounting will be performed by the Water Authority for the following milestones: 7.6.1 Phase I:Water Authority Board award ofthe construction contract for Otay 14 FCF Modifications. 7.6.2 Phase II:Water Authority Board's acceptance ofthe project and the filing and recording of the Notice ofCompletion with the County ofSan Diego. 7.6.3 Upon completion of a cost accounting,as indicated above,Water Authority will provide an accounting report to Otay detailing the costs incurred during Phase I and/or Phase II,as applicable,in form and content satisfactory to Otay. 7.6.3.1 IfOtay's share ofactual costs is more than the deposits,Otay will,within 40 calendar days ofreceipt by Otay ofcost accounting from the Water Authority,make full payment to the Water Authority ofall undisputed amounts.Any payment not made will be subject to a delinquency charge oftwo percent of the delinquent payment for each month or portion thereof after said 40 calendar days that the payment remains delinquent,provided that undisputed amounts shall not be considered due until atay 5 C:\Outiook Temp\Agreement-OtayI4FCFMod 1O-11-06-clean.doc File No.:0720.01 -002.1 DRAFT and Water Authority agree on the amount actually due.Ifthe delinquency does not exceed five business days,the charge shall be equal to a one percent ofthe delinquent amount;or 7.6.3.2 If Otay's share ofactual costs is less than deposits,Water Authority will,within 40 calendar days ofreceipt by Otay ofcost accounting from the Water Authority,make full payment to Otay.Any payment not received will be subject to a delinquency charge oftwo percent ofthe delinquent payment for each month or portion thereof that the payment remains delinquent.Ifthe delinquency does not exceed five business days,the charge shall be equal to a one percent ofthe delinquent amount.If Otay believes its share ofactual costs should be less than the amount specified in the accounting report,it will notify the Water Authority prior to the expiration ofthe 40- day period.It is agreed that no delinquency charge will be assessed on any additional sums claimed by Otay to be due until Otay and the Water Authority agree on the amount actually due. 7.6.4 Detailed records from which costs are compiled will be retained by the Water Authority for a period ofthree years from the date offinal invoice,and will be available for verification by Otay.IfOtay determines an audit is necessary,it will be completed at Otay's expense during the three-year period.Ifany adjustments are recommended by the audit,payment shall be made to the party,in accordance with such recommendations.Agreement shall not be unreasonably withheld and payment shall be made within 40 calendar days ofreceipt ofthe audit 8 Indemnification.Otay and the Water Authority,agree to mutually indemnify,defend at their own expense,including attorneys'fees,and hold each 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 oflaw, 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. 9 Laws and Venue.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 San Diego County, 10 Amendment.This Agreement may be modified only by a subsequent written amendment executed by both Parties. 11 Successors or Assigns.This Agreement and any portion thereof shall not be assigned or transferred, nor shall any ofthe duties be delegated,without the express written consent ofboth Parties,which shall not be unreasonably withheld or delayed.Any attempt to assign or delegate this Agreement without the express written consent ofboth Parties shall be void and ofno force or effect. 6 C:\OutlookTemp\Agreement-OtayI4FCFMod 1O-11-06-clean.doc FileNo.:0720.01-002.1 12 DRAFT Notices.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,postage prepaid,addressed to: San Diego County Water Authority 4677 Overland Avenue San Diego,CA 92123 Attention:Maureen A.Stapleton,General Manager Otay Water District 2554 Sweetwater Springs Boulevard Spring Valley,CA 91978 Attention:Mark Watton,General Manager 13 Dispute Resolution.The parties agree to try to resolve any dispute arising under this Agreement amicably and by negotiation.However,ifthe parties are unable to reach agreement within a reasonable time from the commencement ofnegotiations,either party may seek any legal remedy available to it.For purposes oftp-is Agreement,a reasonable time consists ofnot less than ninety (90)days. 14 Signatures.The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalfoftheir respective legal entities. IN WITNESS WHEREOF,the parties have executed as ofthe date written above. San Diego County Water Authority By:_ Maureen A.Stapleton General Manager Approved as to form: Daniel S.Hentschke General Counsel C:\Outiook Temp\Agreement-Otay14FCFMod 10-11-06-clean.doc FileNo.:0720.01 -002.1 7 Otay Water District By:_ Mark Watton General Manager Approved as to form: Yuri A.Calderon General Counsel DRAFT EXHIBIT A Otay 14 FCF Modifications Location Map N NOT TO SCALE I I I I I I I I (j)I ~I (f)I./"Existing Authority '2 I¥LMSWE Pipeline .!:I 1--I I I I Melody Lane OTAY 14 FCF PROJECT LOCATION 290 S.THIRD STREET EL CAJON .. '~~~'~~"",.9""~--wp;:-~,,,~w_-~~~~~"l>(PROJECT~:H3?i~1i~;'!l'''''¥~'''''':VI:r~~~~""_""""""'lGW'~;~l<l""'ll1?~_.l!l~~~~~ 11/\San Diego County Water Authority I OTAY 14~APITAL IMPROVEMENTij FLOW CONTROL FACILITY PROGRAM I MODIFICATIONS ,~\..'I<~W~~~~~~"'~~<O~;Ii>:M>~J:P!M~1m~~~:oi<\~~"m1~~-W$t ;il'''1."'9K'MIi;-.t'&~~~ W\Graphics \N0034\ -Olay14 FCF lOC MAP.cdr 8 C:\OutiookTemp\Agreement-Otay14FCFMod 10-11-06-clean.doc File No.:0720.01 -002.1 DRAFT EXHIBITB Otay 14 Flow Control Facility and the Otay 14 to Regulatory Reservoir Pipeline Improvement project Connection Point OTAY 14 FCF POINT OF CONNECTION +-' Q) ill'-..~ (f)• U 1....• ..c f- Property Line 290 S.THIRD STREET ~ EL CAJON Existing La Mesa I Sweetwater Extension ~~I I Lexington Avenue Otay 14 FCF The property line is the point of Future 36-inch connection and P'I' change in ownership IPete ~..............,.-. WaterAuthority's I Otay's ownership • ownership :I : I •:.I •..._..__..._...._....__.._...._...._..._...._..._...__.._...._--_....--. • I ••Future Otay 14 to __.....' Regulatory Reservoir Pipeline Improvements I 9 C:\Outlook Temp\Agreement-OtayI4FCFMod 10-II-06-clean,doc FileNo,:0720.01-002.\ DRAFT EXHIBIT C ESTIMATED PROJECT COSTS Phase I:Design Design Phase II:Construction Construction Contract Construction Support Services Capitalized Overhead Total Estimated Project Costl $250,000 $900,000 $50,000 $40,000 $1,240,000 Otay's Estimated Deposit $125,000 $450,000 $25,000 $20,000 $620,000 I Cost items include stafftime,consultant fees,project coordination,meeting attendance,public outreach,right-of-way acquisition,preparation,review,and revisions ofvarious studies and reports,proposals,and agreements,construction bidding process,construction cost,construction management,warranty monitor,and all project related administrative costs. 10 C:\Outlook Temp\Agreement-OtayI4FCFMod 10-11-06-c1ean.doc File No.:0720.01 -002.1 ;I •••••••••·.·_••H•••_·.,••••,••••_••••_••••••••1PROJECT:L._~.. ATTACHMENT C Otay 14 Flow Control Facility Modifications Execution Authorization w.o.No.30096 Agreement ····1 otay Water District P2009 -36-lnch Pipeline.SDCWA otay FCF No.14 to the Regulatory Site .. Date 6.2006 Budget $18.490.000 Committed Expenditures Outstanding Projected Final Commitment &CostForecast Vendor I Comments PlannirJ!:l ..L , ..§~~.d.i~~.._,.,."..J $ In House Staff Labor I $..~3.~~1~.5.71J~_,.,~.~J.~,S..:.~,2 $161,941.~.3..,,~.~i.~.~i.~.~..,.,..,.,..,.,, ,..,',,,..:::::::I:~:::::,::::::,s.~.~:75i "$.." " "".S.~.~:.!..?..?.g.~,F.l:~p.~?.W~,p.~i~~.. Professianal LegaI·Fees !$.~~.?~.?:.~g..L...."..................................,.~..."...".",.,..,.~~.,?~s..:.~,O'...~~.r.~.~..~i.11i,a..':':l.:..~..§?,r.~~,:.:,~"...s~·;:.;;j·~~··C'~·~·t;~·~t~..,..· ·..·..····.., " "..1"$"....................789.20!$789.20 UnionTribute &SD Daily Transcript ::~~~~:~:~!;:~~<:::::.:::::::::.::.::::::::..:::::::':::'::::::::::::':::':::'::::::::::::::::::::::J:::~::::,::::::':,:::::X~;:~~~::~:!.:l:::::::::::::..::::::::::::::::::.::.::::"::::::::::f:::'::::"::,::::::X~;:~~:~;:~:!:':8~"ij:~::0.i:~~:~;":9i~~:;i~!:::::·:::"::::::.::::::::: Temporary Labor !$15.95 I $15.95 Sedona Staffing iLand &Easement Acquisition \$326,000.00 $325,000.00 Total Planning i $168,814.68 j $347,785.32 $506,600.00 [)f!si!:lrlconsultant·$···..·i';·ii3'i3:s·iis·..iio·..! .!'$·"..· ·....,,·,....,·,·,..·$..·..··i·:·3:3'3:·S'ii's:ii'oi'i~·c··..·..·..· ·..·,·,..,·,..,·,..,..,.."..·,..,· "\i~i·~~'E~··i~~~;i·~g'..···.., ,.."'j'$·..9,·:·oiio ii'o··$"·· ·..··9'1:·0·ii'o.'ii'O ·..·..... t :iHft~20,000.00 .,::~:.:::::::::::::::::::::~:~.::~:~,~..;:o.~:.,::::::::~:,::::::::,:.:::..,:.,::::::=.:::.:.:::..:'.:,:,:::',::'.:',:::',::::::::. In House Staff Labor !$6,3 5,000.00 ..,~_..~.~.1..~~,~.~:..o..~"",.. upplies &Misc.!$20 ..~"~O'.~:..~.~"..". Office Supplies (Projected)i $588.56 ..~"?.~,~:..~.~" " " " . ·Outside Services ,000.00 ~~..o.~~o.~:.o.~..T:.a..':':l F.l::p.~~.w~P.~i.~.~~~.L..~.:~·:~~r~~·:~t~a.l;:~·;d··..,··..· ····..··· · ·..·"1..!::ci·:·ci6·6·:~"ci-'..:·..······:·ri:§rici:rici _.. "'="""~-=---:-------+------+------+-'----'---t-'-----'----t " " " ".. Total Design $1,333,808.00 I$6,603.44 \$696,588.56 $2,037,000.00 Grand Total $1.953,808.00 $165.461.021 $16.990,740,,98 $18.490.000.00 6 STAFF REPORT AGENDA ITEM 7a TYPE MEETING:Regular Board SUBMITTED BY: APPROVED BY: (Chief) APPROVED BY: (Asst.GM): MEETING DATE: James Cudlip,FinanC~ag~~o: Joseph R.Beache~~~ Chief Financial Officer German Alvarez,Ass~neral Manager November 1,2006 DIV.NO.All SUBJECT:Accept the District's Comprehensive Annual Financial Report (CAFR)for the Fiscal Year ended June 30,2006 GENERAL MANAGER'S RECOMMENDATION: That the Board accepts the District's Comprehensive Annual Financial Report (CAFR),including the Independent Auditors' unqualified opinion,for the Fiscal Year ended June 30,2006. COMMITTEE ACTION: See Attachment A. PURPOSE: To inform the Board of the significant financial events which occurred during the Fiscal Year ended June 30,2006 as reflected in the Comprehensive Annual Financial Report. ANALYSIS: Teaman,Ramirez and Smith,Inc.,performed the audit and found that,in all material respects,the financial statements correctly represent the financial position of the District. They found no material errors or weaknesses;therefore,there are no findings to present in their "Management Letter."See Attachment B. Total.Assets. Total assets increased by $13.1 million or 2.79%during Fiscal Year 2006.The vast majority of this increase can be attributed to an increase in capital assets $34.5 million,net of related accumulated depreciation. Tota~Liabi~ities &Net Assets: Total liabilities increased by approximately $2.2 million or 3.72%from the previous fiscal year.Underlying this change were the following: •An increase in accounts payable and related liabilities of approximately $2.9 million.Fluctuations of this magnitude are expected given the nature of accounts payable,and result from the timing of large payments to contractors and other third parties. • A reduction in long-term debt outstanding of approximately $1.5 million. The increase in total assets and total liabilities yielded an increase in net assets (equity)of approximately $11.0 million or 2.68%. Capita~Contributions: Capital contributions totaled $15.4 million during Fiscal Year 2006,a decrease of $19.5 million or 55.87%over Fiscal Year 2005 contributions.This decrease is a reflection of the continuing slow down in home sales and related delays in new housing development projects,resulting in a decrease in the amount of physical infrastructure assets contributed to the District. Resu~ts of qperations: Operating revenues increased $4.5 million or 10.44%,mainly as a result of an increase in water sales of $4.4 million from the previous fiscal year which reflects the following underlying factors: •An increase in water meter sales of 835 (46,648 to 47,483)from 2005 to 2006. • A significant decrease in rainfall of 16.45 inches (22.51 to 6.06)from 2005 to 2006. Operating expenses increased by approximately $3.1 million, primarily as a result of an increase in the cost of water sales of $1.9 million.Increases in Outside Services,Pension,and Health &Life Insurance costs accounted for the remainder of the increase in operating expenses. 2 Non-qperating Revenues &Expenses: Non-operating revenues increased approximately $0.2 million due to increases in Investment Income and Taxes &Assessments, offset by the fact that last year's total included a one-time gain on the sale of fixed assets of approximately $2.2 million. Non-operating expenses decreased by approximately $0.6 million, due primarily to one-time expenses in 2005 related to refunding of the 1993 Certificates of Participation (COPS). Additiona~Audit Correspondence: As a part of completing the audit engagement,the audit firm also provides the following letters summarizing their observations and conclusions concerning the District's overall financial processes: •Management Letter:No matters were noted involving the internal controls and their operations that were considered to be internal weaknesses.See Attachment B. •Finance Committee Report:Noted no transactions entered into by the District during the year that were both significant and unusual,or transactions for which there is a lack of authoritative guidance or consensus.No audit adjustments were proposed to correct the financial statements.There were no disagreements with management concerning financial accounting,reporting,or auditing matters,and there were no significant difficulties in dealing with management in performing the audit.See Attachment C. •Report on Internal Control over Financial Reporting: Results of audit tests disclosed no instances of non- compliance that are required to be reported under Government Auditing Standards.See Attachment D. FISCAL IMPACT: None. 3 STRATEGIC OUTLOOK: The District is responsible for providing a diverse range of high-quality public utility services to a rapidly growing customer base The District ensUres its continued financial health through long-term financial planning,formalized financial policies,enhanced budget controls,fair pricing,debt planning,and improved financial reporting The Finance Department is an integral part of the General Manager's vision to be "A District that is at the forefront of innovations to provide water services at affordable rates,with a reputation for outstanding customer service." LEGAL IMPACT: None. General Manager Attachments: A:Committee Action Form B:Audit Management Letter C:Audit Finance Committee Letter D:Audit Report on Internal Control Over Financial Reporting E:Comprehensive Annual Financial Report (CAFR) 4 ATTACHMENT A Accept the District's Comprehensive Annual Financial Report SUBJECT/PROJECT:(CAFR)for the Fiscal Year Ended June 30,2006 COMMITTEE ACTION: The Finance and Administration Committee reviewed this item at a meeting held on October 20,2006.The following comments were made: o Teaman,Ramirez,and Smith,Inc.performed the audit of the District's financial statements for FY 2006 and have issued an "unqualified opinion,"the highest rating that can be issued.The management and internal control letters would also indicate that the auditors found "no material weaknesses." o It was noted that Operating Revenues were up because of increased water sales due to a decrease in rainfall during the fiscal year and an increase in meter sales.Taxes and assessments were also higher. o Increases in the cost of water sales were proportional to the increases in water revenue. o Net Assets increased by $11 million from $411 million to $422 million. o It was noted that additional information was provided in the CAFR with regard to water and sewer specifically (Note 6 to the Financial Statements).This information was not reported in previous CAFR's as it was not a requirement.Staff has implemented the reporting of this information as a part of meeting current requirements for the CAFR award of "Excellence in Financial Reporting"from the Government Finance Officers Association (GFOA). o The statistical information has also been expanded (more than double)as the additional Y:\Board\CurBdPkg\FINANCE\CommMtgCAFRl10106.doc information will be needed for award submission. o Staff has reclassified some expenses to show which side of operations the expenses corresponded with. o The committee indicated that they had not expected to have a completed audit presented for review as it was thought that they would meet with the audit firm on the work plan progress prior to the audit.The committee indicated that they supported placement of the audit on the information/action calendar on the board agenda in November.The committee indicated,by that time,they would have had the opportunity to review the information and would then ask questions. o It was discussed that staff would agendize an audit work plan review discussion with the District's auditor next year (around February) for discussion at the Administration and Finance Committee. o The committee discussed that Teaman,Ramirez and Smith has served as the District's auditor for the past three years.Staff indicated that the District typically retained auditors from 3 to 5 years. ATTACHMENT B •=rC)C5TEAMAN,RAMIREZ &SMITH,INC.••I ~CERTIFIED PUBLIC ACCOUfJTANTS August 10,2006 Joseph Beachem,Chief Financial Officer Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley,CA 91978-2096 Dear Mr.Beachem: We have audited the financial statements of the Otay Water District (the "District")as of and for the year ended June 30,2006,and have issued our report thereon dated August 10,2006.In planning and performing our audit of the financial statements of the District, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control.We noted no matters involving the internal control and its operation that we considered to be material weaknesses under standards established by the American Institute of Certified Public Accountants. We would like to take this opportunity to express our apprecIatIOn for the assistance extended to us during the course of the audit.If we can be of further assistance or if you have any questions regarding our recommendations, please call our office. This report is intended solely for the information and use of the Board of Directors and management.This restriction is not intended to limit distribution of this report,which is a matter of public record. Respectfully Submitted, TEAMAN,RAMIREZ &SMITH,INC. Richard A.Teaman Certified Public Accountant v.C.Smith Jr.,CPA.Richard A.Teaman,CPA.Greg W.Fankhanel,CPA.David M.Ramirez,CPA.Joseph A.Deledonne,CPA 4201 Brockton Ave.Suite 100,Riverside CA 92501 •961.274.9500 •951.274.7828 FAX.www.trscpas.com ATTACHMENT C •'::'rI::)C TEAMAN.RAMIREZ &SMITH.INC.••I "'~CERT I FIE 0 PUB lie Ace 0 UNTAN T S August 10,2006 Finance Committee Otay Water District We have audited the financial statements of the Otay Water District for the year ended June 30,2006,and have issued our report thereon dated August 10,2006.Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards and Government Auditing Standards Our responsibility,as described by professional standards,is to plan and perform our audit to obtain reasonable, but not absolute,assurance that the [mancial statements are free of material misstatement and are fairly presented in accordance with U.S.generally accepted accounting principles.Because an audit is designed to provide reasonable,but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors,fraud,or other illegal acts may exist and not be detected by us. As part of our audit,we considered the internal control of the Otay Water District.Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we performed tests of the Otay Water District's compliance with certain provisions of laws, regulations,contracts,and grants.However,the objective of our tests was not to provide an opinion on compliance with such provisions. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies.In accordance with the terms of our engagement letter,we will advise management about the appropriateness of accounting policies and their application.The significant accounting policies used by the District are described in the notes to the financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year.We noted no transactions entered into by the District during the year that were both significant and unusual,and of which,under professional standards,we are required to inform you,or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because oftheir significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.The most sensitive estimate effecting the [mancial statements were management's estimate of the useful lives for capital assets. V.C.Smith Jr.,CPA.Richard A.Teaman,CPA.Greg W.Fankhanel,CPA.David M.Ramirez,CPA.Joseph A.Deledonne,CPA 4201 Brockton Ave.Suite 100,Riverside CA 92501 •951.274.9500 •951.274.7828 FAX •www.trscpas.com During our audit of the basic purpose financial statements,we performed procedures to determine the reasonableness of the estimates used by management.Based on the procedures performed,we were able to conclude that the estimates used by management were reasonable. Audit Adjustments For purposes of this letter,professional standards define an audit adjustment as a proposed correction of the financial statements that,in our judgment,may not have been detected except through our auditing procedures. An audit adjustment mayor may not indicate matters that could have a significant effect on the Otay Water District's financial reporting process (that is,cause future financial statements to be materially misstated).For the 2005-2006 fiscal year,there were no such adjustments. Disagreements with Management For purposes of this letter,professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction,concerning a financial accounting,reporting,or auditing matter that could be significant to the financial statements or the auditor's report.We are pleased to report that no such disagreements arose during the course ofour audit. Consultations with Other Independent Accountants In some cases,management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion"on certain situations.If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements,our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.To our knowledge,there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with management each year prior to retention as the District's auditors.However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. This information is intended solely for the use of the Otay Water District's Finance Committee and management of the Otay Water District and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, ATTACHMENT D •"::'rI::)C TEAMAN.RAMIREZ &SMITH.INC.••I ,~CERT I FIE 0 PUB Lie Ace 0 UNTAN T S Report on Internal Control OverFinancial Reporting and on Compliance and OtherMatters Based onan Audit ofFinancial Statements Performed in Accordance With Government Auditing Standards Board ofDirectors Otay Water District Spring Valley,California We have audited the financial statements of the business-type activities ofthe Otay Water District as of and for the year ended June 30,2006,which collectively comprise the District's basic financial statements and have issued our report thereon dated August 10,2006.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govemment Auditing Standards,issued by the Comptroller General ofthe United States. Internal Control Over Financial Reporting In planning and performing our audit,we considered Otay Water District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting.Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses.A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Otay Water District's financial statements are free of material misstatement,we performed tests of its compliance with certain provisions of laws,regulations,contracts,and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts.However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion.The results of our tests disclosed no instances of noncompliance that are required to be reported under GovemmentAuditing Standards. This report is intended for solely the information and use of the management,and the Board of Directors,and is not intended to be and should not be used by anyone other than these specified parties. August 10,2006 V.C.Smith Jr.,CPA.Richard A.Teaman,CPA.Greg W.Fankhanel,CPA.David M.Ramirez,CPA.Joseph A.Deledonne,CPA 4201 Brockton Ave.Suite 100,Riverside CA 92501 •951.274.9600 •951.274.7828 FAX •www.trscpas.com - - --.-..:~:~~- -,ATTACHMENT E Comprehensive Annual Financial Report Fiscal Year Ended June 30,2006 Prepared by the Finance Department Spring Valley,California T ABLE OF CONTENTS I.INTRODUCTORY SECTION Letter of Transmittal Organization Chart List ofPrincipal Officials Awards II.FINANCIAL SECTION Independent Auditors'Report Management's Discussion &Analysis Basic Financial Statements: Statement of Net Assets Statement of Revenues,Expenses,and Changes in Net Assets Statement of Cash Flows Notes to Financial Statements Required Supplementary Information: Schedule of Funding Progress for PERS PAGE 1-X XI XII xiii 2-6 7 8 9-10 11-26 27 III.STATISTICAL SECTION Operating Revenues by Source -Last Ten Fiscal Years 28 Operating Expenses by Function -LastTen Fiscal Years 29 Non-Operating Revenues by Source -Last Ten Fiscal Years 30 Non-Operating Expenses by Function -Last Ten Fiscal Years 31 Assessed Valuation of Taxable Property within the District-Last Ten Fiscal Years 32 Property Tax and Assessment Levy and Collections -Last Ten Fiscal Years 33 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capita -Last Ten Fiscal Years 34 Computation of Direct and Overlapping Bonded Debt 35 Computation of Debt Coverage Ratios-Last Ten Fiscal Years 36 Ten Largest Customers 37 Water and Sewer Services -Last Ten Fiscal Years 38 Sewer Rates and Assigned Service Units-Last Ten Fiscal Years 39 Water Rates 40 Water Production by Source (in acre feet)-Last Ten Fiscal Years 41 Active Meters by Meter Size -Entire District -Last Ten Fiscal Years 42 Demographic Statistics 43 INTRODUCTORY SECTION 2554 SWEETWATER SPRINGS BOULEVARD.SPRING VALLEY.CALIFORNIA 91977·7299 TELEPHONE:670-2222,AREA CODE 619 LETTER OF TRANSMITTAL August 10,2006 Honorable Board of Directors Otay Water District I am pleased to present the Otay Water District's (the "District")Comprehensive Annual Financial Report (CAFR)for the fiscal year ended June 30,2006.In 2006,the District's 50th year of providing quality potable and recycled water,and sewer service,there is an emphasis on new water sources,system reliability,and new maintenance requirements. This report was prepared by the District's Finance Department following guidelines set forth by the Government Accounting Standards Board and generally accepted accounting principles (GAAP).Responsibility for both the accuracy of the data presented,and the completeness and fairness of the presentation,including all disclosures,rests with the District.We believe the data,as presented,is accurate in all material respects and that it is presented in a manner that provides a fair representation of the financial position and results of operation of the District. Included are all disclosures we believe necessary to enhance your understanding of the financial condition of the District.GAAP requires that management provide a narrative introduction, overview and analysis,to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A)which should be read in conjunction with this report.The District's MD&A can be found immediately following the Independent Auditors'Report. The District's financial statements have been audited by Teaman,Ramirez and Smith Inc.,a firm of licensed certified public accountants.The goal of the independent audit was to provide reasonable assurance that the financial statements of the District for the fiscal year ended June 30,2006,are free of material misstatement.The independent audit involved examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements;assessing the accounting principles used and significant estimates made by management;and evaluating the overall financial statement presentation.The independent auditor concluded,based upon the audit,that there was reasonable basis for rendering an unqualified opinion that the District's financial statements for the fiscal year ended June 30, 2006,are fairly presented in conformity with GAAP The Independent Auditors'Report is presented as the first component of the financial section of this report. REPORTING ENTITY The District is a publicly-owned water and sewer agency,authorized as a California special district in 1956 by the State Legislature under the provisions of the Municipal Water District Act of 1911.Its ordinances,policies,taxes,and rates for service are set by five Directors,elected by voters in their respective divisions,to serve staggered four-year terms on its Governing Board. The District is a "revenue neutral"public agency,meaning that each end-user pays his or her fair share of the District's costs of water acquisition,operation and maintenance,betterment,and renewal and replacement of the public water and sewer facilities. In 2006,the District celebrates its 50th anniversary.It began on an overcast summer day in 1955 when a plumber, a civil engineer,an attorney,a newspaper publisher,and two owners of large tracts of land gathered for lunch at Christie's Restaurant in Chula Vista.They met to discuss how together they could bring life-giving water to an arid region of southeastern San Diego County.By the end of the day,the group had a common vision,a few thousand dollars in capital,and the framework for what would later become the Gtay Water District.Their vision was realized.on January 27,1956,when the District was authorized by the California Legislature to an entitlement to import water. Over the next 50 years,the District has grown from a handful of customers and two employees to become an organization operating a network with more than 663 miles of pipelines,37 reservoirs,a sewer treatment plant,and one of the largest recycled water distribution networks in San Diego County.The character of the service area has also changed from predominantly dry- land farming and cattle ranching,to businesses,high-tech industries,and large master planned communities. Today,the District provides water service to nearly 46,830 potable and 540 recycled customers within approximately 125 square miles of southeastern San Diego County.All of the potable water delivered by the District is purchased from the San Diego County Water Authority (CWA) who in turn purchases water from the region's water importer,the Metropolitan Water District of Southern California.In Fiscal Year 2007,the District began purchasing raw water from CWA and made an agreement with the City of San Diego to treat the water.By taking raw water through CWA's system there is increased reliability of water supplied to the District.This water is delivered through the Lower Gtay Pump Station. The District also owns and operates a wastewater collection and recycling system to provide public sewer service to approximately 4,570 homes and businesses (or 6,600 Assigned Service Units)within portions of the communities of La Mesa,Rancho San Diego,El Cajon,Jamul,and Spring Valley.Recycled water from the Ralph W.Chapman Water Recycling Facility (RWCWRF)is used to irrigate golf courses,schools,public parks,roadway landscapes,and various other approved uses in eastern Chula Vista.The RWCWRF project is capable of reclaiming wastewater at a rate of 1.3 million gallons per day.The District is also in a partnership with the City of San Diego to beneficially reuse an additional six million gallons per day of recycled water from the City's South Bay Water Reclamation Plant (SBWRP). CURRENT ECONOMIC CONDITIONS AND OUTLOOK The District's service area is in one of the fastest growing regions in the nation.During the past decade,the population of the service area has nearly doubled.The phenomenal growth is continuing and as of January 2006,it is estimated that the District served 189,000 residents.In just the past four years,the District has added more than 5,000 new customer connections.This is reflected internally as the District's Development Services Department currently approves approximately 70 permits per month,and sold 835 water meters in Fiscal Year 2005-2006.The San Diego Association of Governments (SANDAG),the regional planning agency, estimates the District's rate of growth will continue for a decade or more.The District projects a total customer base of approximately 277,000 people by the year 2020. BUDGET SUMMARY For Fiscal Year 2007,the budget totals $94 million,with operating expenditures of $59 million and capital expenditures of $35 million.The District's goal is to provide the most effective and efficient service possible while maintaining affordability of the water supply for the community. The operating expenditures are derived from three major sectors:water,reclamation,and sewer. Revenues for the water utility in Fiscal Year 2007 are projected to be $47,616,200 about $4.2 million (9.7%)greater than Fiscal Year 2006.Water sales are expected to increase as a result of a slowing but continuing growth trend occurring within the District's service area.This growth should add over 870 new customer accounts and increase the District's assets by approximately $35 million for the year. Significant aspects of the Operating Budget are: • A balanced budget meeting the goals of the Strategic Plan. •The District has updated a six-year Rate Model to ensure sound financial planning and reserve levels. •The District implemented rate increases in potable and reclaimed water,and sewer.This included pass-through rate increases from CWA,City of San Diego,and County of San Diego who raised costs to the water and sewer customers. •Of San Diego County's 23 water agencies,Otay's water rate is the seventh-lowest and below the county-wide average. •The District is planning on issuing debt in Fiscal Year 2007 to fund the construction of new facilities,and replacement or enhancement of facilities. •Includes funding for the six million gallons per day recycled water purchase agreement with the City of San Diego. •Includes funding for new regulations for air vac,valve maintenance,and the automated meter reading change-out program. •Expands residential,landscape,and commercial water conservation programs. •Enhances Storm Water Control Best Management Practices. •Funds the fourth year of a Five-Year Labor Agreement ending in Fiscal Year 2008. The projected operating cost for salaries and benefits is $14.6 million,which is an increase of $1,149,000 (8.5%)compared to Fiscal Year 2006.The increase in labor is predominately the result of negotiated pay and benefit increases.. Estimated growth of 870 potable and recycled water accounts will bring the new customer count to 47,670 potable and 570 recycled accounts by the end of Fiscal Year 2007 that equates to approximately 74,600 equivalent dwelling units (EDUs).The ultimate population projection of 277,000 will result in an estimated 114,000 EDUs and an average annual water demand of approximately 56 million gallons per day (MOD).To accommodate this growth,the District will need to invest an estimated $530 million in capital assets through ultimate build-out.The Fiscal Year 2006-07 Capital Budget consists of 90 projects and a budget of $35 million.The budget emphasizes long-term planning for on-going programs while functioning within fiscal constraints and population growth. The District has begun to address the transformation from a growth-centric to a maintenance- based organization.Capital and developer fees support growth but replacement and maintenance is supported by rates and operating expenses.Otay has been very successful in managing growth and now needs to focus on managing long-term maintenance and replacement of its aging infrastructure. Otay'sCurrentPosition Growth ..... Business Maturity curv...:••.••..•......,,} Requiresa Major.••.Sustam Change in Direction..'..•. Time STRATEGIC BUSINESS PLAN To guide operations and planning efforts during this time of sustained growth,in 200I the District began developing a Strategic Business Plan.This plan was designed to address the unique challenges and opportunities resulting from growth.It would also guide the District as it strives to develop the necessary infrastructure and operational practices to perform its primary business while ensuring quality customer service and competitive rates are maintained. The first multi-year Strategic Business Plan was adopted by the Board of Directors in 2002.Each year,the Board of Directors reviews and updates the plan.While the first plan guided the District through a period of record growth,the updated plan using a balanced scorecard method,looks forward to a time when the majority of the requisite physical infrastructure is in place and the District begins to transform from a growth-centric entity to a maintenance-based organization.The District has been very successful managing growth and recognizes that continued success is predicated on developing reliable,long-term,water supplies as well as managing long-term maintenance and replacement of its infrastructure. One key to addressing the challenges is to capitalize on the significant investment that has been made in implementing integrated information systems.With the Otay Information System in place,the District has focused on business process improvement utilizing best-in-class technology.Other Strategic Business Plan objectives include securing additional water sources, continuing expansion of its potable and recycled water networks,expanding use of recycled water,and continuing efforts to promote conservation. The vision incorporated in the Strategic Plan calls for:continuing to enhance the District's financial reporting document capabilities,developing an Integrated Water Resources Plan (IRP) including potable,recycled water,and wastewater services;identifying and supporting the development of new water sources such as desalination,agricultural to urban water transfers, groundwater development,and the use of recycled water;and utilizing new technologies to continue streamlining operations to minimize rate increases and to ensure the District's viability through the entire build-out of its customer base. Putting the Strategic Business Plan to Work With the Strategic Business Plan serving as its primary guide,the Board of Directors adopted a balanced $59 million Operating Budget and $35 million Capital Improvement Program (CIP)for Fiscal Year 2006-2007.The budget is also aligned with the District's long-range financing plan, Rate Model,and financial statements.In conjunction with a Bond refinancing,the credit rating firm Standard and Poor's awarded the Otay Water District an A+credit rating.Standard and Poor's presented the A+rating after reviewing the District's financing plan,Rate Model, Strategic Plan,budget,and financial statements. Water Resources The Strategic Plan drives advances in every aspect of District operations.For instance,the Strategic Plan called for updating of the Urban Water Management Plan (UWMP),which was completed m December 2005.The UWMP serves as a long-range planning document for water supply and demand,and provides an overview of the District's water supply and usage,recycled water,and conservation programs.The UWMP works to ensure the District always has the water resources it needs to meet the demands of a growing community. The need to develop an Integrated Water Resources Plan (IRP)is identified within the Strategic Plan.The mission of the IRP is to find the optimal mix of imported water,local supplies,and conservation efforts to meet projected ultimate supply requirements in a cost-effective manner while also incorporating environmental impacts,implementation risks,and other factors.The planning objectives are to maintain affordability,meet water quality standards,achieve supply reliability,increase system flexibility,increase supply diversity,and address environmental and institutional constraints.The IRP planning effort will identify and evaluate all potential water resource supply opportunities to arrive at a recommended diverse water supply portfolio. The water supply portfolio will provide a strategic approach and focused direction to be incorporated into the water resources master plan and the Capital Improvement Program for the development of sufficIent water supply to meet the planning objectives for long-term sustainability.The water supply alternatives include all potential opportunities such as desalination,groundwater,water transfers,recycled water supply development,and interagency agreements. Recycled Water Included in the UWMP is an agreement with the City of San Diego allowing the District to purchase recycled water from the City's South Bay Reclamation Facility. This contract will deliver,on average,more than six million gallons per day of recycled water to the District's growing population.Recycled water purchased from this facility will be used to irrigate golf courses,parks,open space,road medians,and other commercial processes.Using this mostly untapped resource to address specific demands will result in the District reducing its potable water use by approximately 15%,maximizing the beneficial use of an alternative resource,which also makes millions of gallons per day of potable water available for higher quality and better purposes.In May 2005, the District awarded a contract for approximately six miles of pipeline connecting the City's reclamation facility to the District's pumping station and reservoir facilities,with construction scheduled to be completed in spring 2007.The District will be receiving $4 million from Proposition 50 from the State Water Resources Control Board (SWRCB)for partial funding of this project. The Future The Otay Water District continues to use the challenges presented by growth to create new opportunities and new organizational efficiencies.By utilizing and continuing to refine its Strategic Plan,it has captured the Board of Director's vision and united its staff in a common mission.The organization has achieved a number of significant accomplishments based on its successful adherence to the plan.As a result,the District is poised to successfully continue providing an affordable,safe, and reliable water supply for the people of its service area. ACCOUNTING SYSTEM The Finance Department is responsible for providing financial services to the District,including financial accounting and reporting,payroll and accounts payable,custody and investment of funds,billing and collection of water and wastewater charges,taxes,and other revenues.The District's books and records are maintained on an enterprise basis,as it is the intent of the Board to manage the District's operations as a business,thus matching revenues against costs of providing services.Revenues and expenses are recorded on the accrual basis in the period in which revenue is earned and expenses are incurred. Dtay Water District operates within a system of internal controls established and'continually reviewed by management to provide reasonable assurance that assets are adequately safeguarded and transactions are recorded correctly according to District policies and procedures.When establishing or reviewing control,management must consider the cost of the control and the value of the benefit derived from its utilization.Management normally maintains and implements all sensitive controls and those controls whose value adequately exceeds their cost. INTERNAL CONTROLS All internal control evaluations occur within the above framework.Management believes the District's internal controls,procedures,and policies adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. In addition,the District maintains controls to provide for compliance with all finance related legal and contractual provisions.Management believes the activities reported within the presented Comprehensive Annual Financial Report (CAFR)comply with these finance related legal and contractual provisions,including bond covenants and fiduciary responsibilities. BUDGETING CONTROLS The District views the budget as an essential tool for proper financial management.The budget is developed with input from the various department levels of the organization and is adopted prior to the start of each fiscal year.It is designed and presented for the general needs of the District,its staff,and citizens.It is a comprehensive and balanced financial plan that features District services,resources and their allocation,financial policies,and other useful information to allow the users to gain a general understanding of the District's financial status and future. Monthly comparison reports of budget to actual are prepared and distributed to all department heads with top level information provided to the Board at the monthly Board meeting. CASH MANAGEMENT During the year,available funds were invested in certain eligible securities as required by law and in accordance with its own investment policy adopted by the Board of Directors.The investment objectives of the District in order of priority are:to preserve the capital of the portfolio,to maintain adequate liquidity to meet cash flow requirements,and to obtain a reasonable rate of return without compromising the first two objectives. RISK MANAGEMENT Since 1993 the District has been a member of the Association of California Water Agencies Joint Powers Insurance Authority (JPIA).The JPIA provides joint protection coverage for losses in excess of District deductibles for workers'compensation coverage.In 2003, the District became a member of the Special District Risk Management Authority (SDRMA),a pool program which provides the District's coverage for property,auto,and liability claims. During Fiscal Year 2005-2006,the District continued its proactive liability risk management role through careful monitoring of losses and designing and implementing programs to minimize risks and losses.In addition,the District's Safety Committee analyzes workers'compensation issues by monitoring work conditions,and organizing and implementing safety training programs to reduce employee exposure to hazards. PENSION PLANS In addition to participating in Social Security,the District provides a defined benefit pension plan for its employees through the California Public Employees'Retirement System (CaIPERS). The District contributes a specified percentage of covered employees'payroll,which is invested by CaIPERS.Upon retirement,District employees are entitled to a specified retirement benefit. The plan is more fully described in Note 7 to the Financial Statements. OTHER POST-EMPLOYMENT BENEFITS COPEB) The District provides other post-employment benefits (OPEB)as a part of the total compensation offered to attract and retain the services of qualified employees.OPEB includes healthcare,as well as other forms of benefits (for example life insurance)when provided separately from a pension plan.Financial reporting of the actuarial accrued liabilities corresponding to all promised benefits associated with past services of District employees is not required until Fiscal Year 2008-2009.Setting the District apart from most state and local government employers,the District designated $16.7 million which fully funded its net OPEB obligations as of the last actuarial projection dated June 30,2004.For additional information see Note 8 to the Financial Statements. AWARDS AND ACKNOWLEDGMENTS This year,the District received the State of California's "Flex Your Power"award for its Demand Response Program.Since 2003,the OWD has upgraded pumps,motors,lights,as well as heating and air conditioning equipment to improve efficiency and save energy.Energy savings from these actions save 1.7 million kilowatt-hours of energy each year. The District also reduced electricity use by cutting demand during peak hours when energy supplies are tight.Through participation in the Flex Your Power Demand Response Program,the District was able to cut its peak demand by 56%through time-of-use metering and off-peak pumping.While participating in the Flex Your Power campaign,the District has cut energy use and produced approximately $93,000 in annual energy savings.Reducing energy use during peak periods also reduced demand on the state-wide power grid.Across California,the Flex Your Power campaign has reduced electricity demand by more than two million kilowatts,the equivalent capacity of two nuclear power plants. The Government Finance Officers Association (GFOA)awarded a Certificate of Achievement for Excellencein Financial Reporting to the Otay Water District for its Comprehensive Annual Financial Report (CAFR)for the fiscal year ended June 30,2005.In order to be awarded a Certificate of Achievement,a government agency must publish an easily readable and efficiently organized Comprehensive Annual Financial Report.This report must satisfy both generally accepted accounting principles and applicable legal requirements.A Certificate of Achievement is valid for a period of one year only.In addition,the CAFR received the Outstanding Financial Reporting Award from the California Society of Municipal Finance Officers (CSMFO).We believe that our current Comprehensive Annual Financial Report continues to meet both of the program's requirements and are submitting it to the GFOA and CSMFO to determine its eligibility for future awards. The District also received a Distinguished Budget Presentation Award from the GFOA for the District's Operating and Capital Budget for Fiscal Year beginning July 1,2005,as well as three awards from the CSMFO for Excellence in Public Communications,Meritorious in Innovation in Budgeting,and Excellence in Capital Budgeting.These prestigious awards recognize conformance with the highest standards for preparation of state and local government financial reports. I would like to thank all of the staff involved for their efforts in preparing this Comprehensive Annual Financial Report,and for their hard work to ensure a successful outcome.I would also like to thank the firm of Teaman,Ramirez and Smith,Inc.,for their professional work and opinion.To the Board of Directors,staff and I acknowledge and appreciate their continued support and direction in achieving excellence in financial management. ORGANIZATION CHART BOARD OF DIRECTORS I GENERAL MANAGER I I I ASSISTANT GENERAL MANAGER ASSISTANT GENERAL MANAGER I I I I I I I I ADMINISTRATIVE FINANCE INFORMATION WATER ENGINEERING DEVELOPMENT SERVICES TECHNOLOGY OPERATIONS AND PLANNING SERVICES I AND STRATEGIC I PLANNING I I IHumanControllerI Resources and I IT I Water SystemApplication Planning Public ServicesBudgetaryOperations I Services \I I IIPurchasingand Facilities Treasury and GIS Utility ConstructionAccountingMaintenance/Design I Services I Construction IISafetyandII IITRisk Collection!Water Survey Administration Customer Operations Treatment/ResourcesServiceRecycledI IIOperations Water Conservation Payroll and Environmental Accounts Payable LIST OF PRINCIPAL OFFICIALS Fiscal Year 2005-2006 Board ofDirectors 'I.II::1'-\'~"--'~I,~'\\"'.~'"\;",'.r .\-!~"\;.:.~: .) : ",,,;...,.'. "."~__.t Listecl.li·om Leli to Right Larry Breitfelder -Division 1 Jose Lopez -President -Division 4 Jaime Bonilla -Division 2 Mark Robak -Vice President,Division 5 Gary Croucher -Treasurer,Division 3 District Financial Management Mark Watton -General Manager German Alvarez -Assistant General Manager,Finance and Administration Manny Magana -Assistant General Manager,Engineering and Operations Joseph R.Beachem -ChiefFinancial Officer AWARDS FINANCIAL SECTION INDEPENDENT AUDITORS'REPORT Board ofDirectors Otay Water District Spring Valley,California We have audited the accompanying financial statements of the business-type activities of the Otay Water District,as ofand for the years ended June 30,2006 and 2005,which collectively comprise the District's basic financial statements,as listed in the table of contents.These basic financial statements are the responsibility of the District's management.Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptrol1er General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the basic financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management,as wel1 as evaluating the overall basic financial statement presentation.We believe that our audit provides a reasonable basis for our opinion. In our opinion,the basic financial statements referred to above present fairly,in all material respects,the respective financial position of the business-type activities of the Otay Water District,as of June 30,2006 and 2005,and the cash flows where applicable,thereof for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards,we have also issued our report dated August 10,2006 on our consideration of the District's internal control over financial reporting and our test of its compliance with certain provisions of laws,regulations, contracts and grant agreements and other matters.The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results ofthat testing,and not to provide an opinion on the internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results ofour audit. The information identified in the accompanying table of contents as Management's Discussion and Analysis and Required Supplementary Information is not a required part of the basic financial statements,but are supplementary information required by the Governmental Accounting Standards Board.We have applied certain limited procedures,which consisted principal1y of inquires of management regarding the methods of measurement and presentation of the supplementary information.However,we did not audit the information and do not express an opinion on it. Our audit was conducted for the purpose offorming an opinion on the basic financial statements that collectively comprise the Otay Water District's basic financial statements.The introductory section and statistical section,as listed in the table of contents,are presented for purposes ofadditional analysis and are not a required part of the basic financial statements.The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly,we express no opinion on them. August 10,2006 OTAYWATERDISTRICT Mana~ement's Discussion and Analysis As management of the Otay Water District (the "District"),we offer readers ofthe District's financial statements this narrative overview and analysis of the District's financial performance during the fiscal year ending June 30,2006.Please read it in conjunction with the District's financial statements that follow Management's Discussion and Analysis.All amounts,unless otherwise indicated,are expressed in millions of dollars. Financial Highlights • • The assets ofthe I>istrictexceeded its liabilities at the close ofthe mostrecent fiscalyear by $422.1 million (netps$ets).Ofthis amount,$60.5 million (unrestricted net assets)may be used to nwetthe District's ongoing obligations to citizens and creditors. TheDistrict's total net assets increased by $11.0 million.Approximately $6:0 rriillion ofthis is -attrtbutable tp . an increase in operating revenues over the prior fiscal year. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the District's basic financial statements.The District's basic financial statements are comprised of the following:I)Statement of Net Assets,2)Statement ofRevenues,Expenses and Changes in Net Assets,3)Statement of Cash Flows,and 4)Notes to the financial Statements.This report also contains other supplementary information in addition to the basic financial statements. The Statement ofNet Assets presents information on all ofthe District's assets and liabilities,with the difference between the two reported as net assets.Over time,increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or weakening. The Statement ofRevenues,Expenses and Changes in Net Assets presents information showing how the government's net assets changed during the most recent fiscal year.All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,regardless ofthe timing ofrelated cash flows.Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,uncollected taxes and earned but unused vacation leave). The Statement ofCash Flows presents information on cash receipts and payments for the fiscal year. The Notes to the Financial Statements provide additional information that is essential to a full understanding of the data supplied in the government-wide financial statements. In addition to the basic financial statements and accompanying notes,this report also presents certain required supplementary information concerning the District's progress in funding its obligation to provide pension benefits to its employees. Financial Analysis As noted earlier,net assets may serve over time as a useful indicator ofa government's financial position.In the case of the District,assets exceeded liabilities by $422.1 million at the close of the most recent fiscal year. By far,the largest portion of the District's net assets,$361.6 million (86%),reflects its investment in capital assets less any related debt used to acquire those assets that is still outstanding.The District uses these capital assets to provide services to citizens; consequently,these assets are not available for future spending.Although the District's investment in its capital assets is reported net of related debt,it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. OTAY WATER DISTRICT Management's Discussion and Analysis In prior years the District segregated Net Assets into 3 categories:Restricted,Unrestricted,and Invested in Capital Assets Net of Related Debt.The Restricted assets consisted of funds that were designated for capital improvements.During the current year all of these funds were used to pay for major capital improvements in the District's Potable Water System and Reclaimed Water System. At the end of the fiscal year,the District is able to report positive balances in all categories of net assets.The situation held true for the prior fiscal year.Total net assets increased by approximately $11.0 million from the prior year,substantially as a result of a $34.5 million increase in capital assets,net of related accumulated depreciation.An increase in infrastructure of $29.0 million from 2005 to 2006 accounted for the miUority of the increase in Capital Assets,see note 3 in the Notes to Financial Statements for additional information.Other less significant changes include an increase in accounts payable of $2.9 million,and a decrease in long-term debt of$1.5 million. Funding for the increase in net assets came primarily from capital contributions during fiscal year 2005-2006,which totaled approximately $15.4 million. OrrAY WATER DISTRICT Managefueht'sDiscussion and Analysis Statements ofRevenues,Expenses,and Changes in Net Assets (In Millions of Dollars) Water sales increased by $4.5 million from the prior year mainly due to reduced rainfall during the current year,as well as an increase in water meter sales of 835 (46,648 to 47,483).There was a significant decrease in rainfall of 16.45 inches (22.51 to 6.06),and total water sales increased by 3,044 acre-feet. Wastewater revenue increased by $0.3 million as a result of a rate increase from $26.90 to $30.90 per assigned service unit.This increase was implemented in January of 2006 and was a pass-through cost increase from the City and County of San Diego as discussed in the Budget 2006-2007 section of this document. Other operating expenses increased by approximately $3.5 million,predominately as a result of an increase in the cost of water sales of $2.2 million.Increases in outside services and higher pension costs accounted for the remainder of the increase in other operating expenses. '0 AV'OTAY WATER DISTRICT Mana~ement's Discussion and Analysis Capital Assets and Debt Administration Capital Assets.The District's capital assets as ofJune 30,2006,totaled $397.0 million (net ofaccumulated depreciation). Included in this amount is land.The total increase in the District's capital assets for the current fiscal year was 9.5%. Capital Assets (In Millions of Dollars) Dollar Total % 2006 2005 Change Change Land $12.5 $12.2 $0.3 2.46 % Water System 333.0 313.9 19.1 6.08 % Engineering Equipment 5.7 5.7 0 0.00% Buildings 17.5 16.7 0.8 4.79% Power Operated Equipment 1.6 1.6 0.0 0.00% Transportation Equipment 2.9 2.8 0.1 3.57 % Other Equipment 10.9 10.3 0.6 5.83 % Reclaimed Water System 49.1 39.8 9.3 23.37 % Sewer System 37.7 37.2 0.5 1.34 % Construction in Progress 58.9 45.1 13.8 30.60 % 529.8 485.3 44.5 9.17 % Less Accumulated Depreciation (132.8)(122.8)\0.0 8.14% Net Capital Assets ~397.0 $362.5 $34.5 9.52 % As indicated by figures in the table above,the majority of capital assets added during the current fiscal year were related to water systems.In addition,the majority of the cost ofconstruction in progress also related to water systems. Additional information on the District's capital assets can be found in Note 3. Long-term Debt.Atlune 30,2006,the District had $35.4 million in outstanding debt which consisted of the following: General Obligation Bonds Certificates of Participation Notes Payable Capital Leases Total Long-term Debt $ $ 8.8 24.9 1.7 0.0 35.4 Additional information on the District's long term debt can be found in Note 5. OTAYWATERDISTRICT Mana2ement's Discussion and Analysis Fiscal Year 2006-2007 Budget Economic Factors While growth in the San Diego area has slowed over the last year,demand for housing continues at a similar reduced pace.This growth in new homes is expected to continue at a long-term rate of 3%until ultimate build-out.The District currently provides water service to about 68%of its total projected population,serving approximately 189,000 people.This percentage should continue to increase as the District's service area continues to develop and grow.The District is projected to deliver approximately 42,300 acre-feet of water to 48,237 customers during fiscal year 2006-2007. Ultimately,the District is projected to serve approximately 277,000 people,creating an average daily demand of 56.3 million gallons per day (MGD). Financial The rapidly expanding demand for water service over the past few years continues to support the incremental costs associated with meeting this increase in demand.As a result,the District has been able to increase staffing levels and implement strategic changes that will provide long-term benefits to the District,while only increasing rates at modest levels. In an effort to remain pro-active and re-affirm the adequacy of its current sewer rate structure,the District conducted a comprehensive rate study during fiscal year 2002-2003 with the assistance of the professional firm ofBlack &Veatch Corporation. The conclusions reached in the rate study revealed the need to raise rates in order to pass along cost increases from the City and County ofSan Diego.The first sewer rate increase was implemented in January of2004 and rates were increased annually through 2006 to lessen the impact on customers.Future sewer rate increases will be tied directly to the cost ofservices. In 2003,the San Diego County Water Authority and the Metropolitan Water District changed their rate structure from a mostly variable rate structure to one that incorporates a greater proportion of fixed fees.In 2004,the fixed fee portion increased significantly,leading the District to implement a new consolidated pass-through charge to potable water customers effective January 1,2004. Management is unaware of any other conditions that could have a significant past,present,or future impact on the District's current financial position,net assets or operating results. Contacting the District's Financial Management This financial report is designed to provide a general overview of the Gtay Water District's finances for the Board of Directors,taxpayers,creditors,and other interested parties.Questions concerning any of the information provided in the report or requests for additional information should be addressed to the District's Finance Department,2554 Sweetwater Springs Blvd.,Spring Valley,CA 91978-2096. Basic Financial Statements OTAY WATER DISTRICT Statement of Net Assets Jone 30,2006 and 2005 ASSETS Current Assets: Cash and Cash Equivalents (Note 2) Restricted Cash and Cash Equivalents (Note 2) Investments (Note 2) Accounts Receivable Accrued Interest Receivable Restricted Accrued Interest Receivable Restricted Taxes and Availability Charges Receivable Inventory Prepaid Expenses and Other Current Assets Total Current Assets Noncurrent Assets: Restricted Cash and Cash Equivalents (Note 2) Capital Assets,Net ofDepreciation (Note 3) Other Noncurrent Assets (Note 4) Total Noncurrent Assets Total Assets 2006 2005 $13,755,907 $3,473,662 0 6,623,379 62,596,513 73,376,529 6,808,999 7,105,484 818,798 82,483 0 506,678 318,090 322,438 592,426 620,119 664,133 341,686 85,554,866 92,452,458 0 14,430,450 396,987,584 362,480,711 838,990 894,745 397,826,574 377,805,906 483,381,440 470,258,364 LIABILITIES Current Liabilities: Current Maturities ofLong-term Debt (Note 5) Accounts Payable Accrued Payroll Liabilities Other Accrued Liabilities Customer Deposits Liabilities Payable From Restricted Assets: Accounts Payable Accrued Interest Total Current Liabilities 1,529,848 11,617,499 2,348,853 683,350 2,489,101 7,633,220 413,442 26,715,313 1,456,907 11,809,983 2,012,855 603,657 2,244,193 4,556,884 403,839 23,088,318 Noncurrent Liabilities: Liabilities Payable From Restricted Assets: Prepaid Capacity Fees Long-term Debt (Note 5) General Obligation Bonds Certificates of Participation Notes Payable Capital Lease Payable Total Noncurrent Liabilities Total Liabilities NET ASSETS (NOTE 6) Invested in Capital Assets,Net of Related Debt Restricted Unrestricted Total Net Assets The accompanying notes are an integral part of this statement. 733,915 733,854 8,396,755 8,728,482 24,119,352 24,908,607 1,350,778 1,659,035 0 51,595 34,600,800 36,081,573 61,316,113 59,169,891 361,590,845 325,676,089 0 16,188,364 60,474,482 69,224,020 $422,065,327 $411,088,473 QTAY WATERDISTRICT Statement ofRevenues,Expenses and Changes iit Net Assets For the Years Ended June 30,2006aitd2005 OPERA TING REVENUES Water Sales Wastewater Revenue Connection and Other Fees Total Operating Revenues OPERATING EXPENSES Cost of Water Sales Wastewater Administrative and General Depreciation Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Investment Income Taxes and Assessments Availability Charges Gain on Sale of Capital Assets Miscellaneous Revenues Donations Interest Expense Miscellaneous Expenses Total Nonoperating Revenues (Expenses) Income (Loss)Before Contributions Capital Contributions Change in Net Assets Total Net Assets,Beginning Total Net Assets,Ending The accompanying notes are an integral part of this statement. 2006 2005 $43,755,610 $39,348,056 2,328,582 2,017,992 1,776,896 540,055 47,861,088 41,906,103 31,630,074 29,655,869 2,313,278 2,521,861 15,552,287 13,809,022 10,107,455 10,524,134 59,603,094 56,510,886 (11,742,006)(14,604,783) 3,188,645 2,052,292 2,779,635 2,326,526 609,099 556,590 142,922 2,196,655 1,835,710 2,518,285 0 (35,894) (959,225)(1,327,844) (279,506)(523,905) 7,317,280 7,762,705 (4,424,726)(6,842,078) 15,401,580 34,969,305 10,976,854 28,127,227 411,088,473 382,961,246 $422,065,327 $411,088,473 OTAYWATERDISTRICT Statement of Cash Flows For the Years Ended June 30,2006 and 2005 2006 2005 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers Cash from Other Operating Activities Other Receipts Cash Payments to Suppliers Cash Payments to Employees Other Payments Net Cash Provided (Used)By Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipts from Taxes and Assessments Receipts from Property Rents and Leases Net Amounts Paid for Acquisition and Maintenance of Demonstration Garden Net Cash Provided (Used)By Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Capital Contributions Proceeds from Sale ofCapital Assets Proceeds from Debt Related Taxes and Assessments Proceeds from Long-Term Debt (Note 5) Principal Payments on Long-Term Debt (Note 5) Premium Payment on Long-Term Debt Acquisition and Construction of Capital Assets Interest Paid Net Cash (Used)By Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest Received on Investments Proceeds from Sale and Maturities of Investments Purchase of Investments Net Cash Provided (Used)by Investing Activities Net Increase (Decrease)in Cash and Cash Equivalents Cash and Cash Equivalents -Beginning of Year Cash and Cash Equivalents -End of Year The accompanying notes are an integral part ofthis statement. $46,771,759 $40,612,964 1,776,896 540,055 1,029,696 1,866,753 (30,960,264)(26,933,592) (15,530,526)(13,203,467) (186,793)(192,995) 2,900,768 2,689,718 2,783,983 2,227,292 819,239 766,733 0 (35,894) 3,603,222 2,958,131 9,467,925 11,40 1,613 142,922 2,637,143 609,099 579,905 0 12,270,000 (1,456,905)(13,014,439) 0 (233,600) (38,828,017)(20,231,136) (949,622)(1,676,550) (31,014,598)(8,267,064) 2,959,008 1,938,759 52,780,016 8,000,000 (42,000,000)(24,012,814) 13,739,024 (14,074,055) (10,771,584)(16,693,270) 24,527,491 41,220,761 $13,755,907 $24,527,491 OTAY WATER DISTRICT Statement of Cash Flows F or the Years Ended June 30,2006 and 2005 2006 2005 Reconciliation ofoperating income (loss)to net cash provided (used)by operating activities: Net Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash Provided (Used)by Operating Activities: Depreciation Miscellaneous Revenues Miscellaneous Expenses Increase in Allowance for Doubtful Accounts (Increase)Decrease in Accounts Receivable (Increase)Decrease in Inventory (Increase)Decrease in Prepaid Expenses and Other Current Assets Increase (Decrease)in Accounts Payable Increase (Decrease)in Accrued Payroll and Related Expenses Increase (Decrease)in Other Accrued Liabilities Increase (Decrease)in Customer Deposits Increase (Decrease)in Prepaid Capacity Fees Total Cash Provided (Used)By Operating Activities SUPPLEMENTAL DISCLOSURES Non-cash Investing and Financing Activities Consisted of the Following: Contributed Capital for Water and Sewer System Change in Fair Value oflnvestments and Recognized Gains/Losses Capital Contribution Resulting from Prepaid Capacity Fees Amortization Related to Long-term Debt Cash Paid for Interest Expense The accompanying notes are an integral part of this statement. $(II 742,006)$(14,604,783) 10,107,455 10,524,134 1,029,696 1,866,753 (186,793)(192,995) 146,174 °296,485 (753,084) 27,693 (133,811) (322,447)(90,729) 2,883,852 6,435,312 335,998 (116,231 ) 79,693 126,893 244,908 (321,783) 60 (49,958) $2,900,768 $2,689,718 $24,494,557 $23,580,701 354,270 (347,693) 61 55,848 92,713 95,568 $1,410,957 $1,360,257 OTAYWATERDISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 NOTE DESCRIPTION PAGE Reporting Entity and Summary ofSignificant Accounting Policies 13 -15 2 Cash and Investments 15 -19 3 Capital Assets 19 4 Other Noncurrent Assets 20 5 Long-term Debt 20 -23 6 Segment Information 23 -25 7 Net Assets 25 8 Defined Benefit Pension Plan 26 -27 9 Post Employment Benefits 27 10 Water Conservation Authority 27 11 Commitments and Contingencies 28 12 Risk Management 28 -29 13 Interest Expense 29 OTAy WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A)Reporting Entity Otay Water District (the "District")is a public entity established in 1956 pursuant to the Municipal Water District Law of 1911 (Section 711 et.Seq.of the California Water Code)for the purpose of providing water and sewer services to the properties in the District.The District is governed by a Board of Directors consisting of five directors elected by geographical divisions based on District population for a four-year alternating term. B)Measurement Focus,Basis ofAccounting and Financial Statement Presentation The basic financial statements of the Otay Water District have been prepared in conformity with accounting principles generally accepted in the United States of America.The Governmental'Accounting Standards Board (GASB)is the accepted standard setting body for governmental accounting financial reporting purposes. The District reports its activities as an enterprise fund,which is used to account for operations that are financed and operated in a manner similar to a private business enterprise,where the intent of the District is that the costs (including depreciation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges.Revenues and expenses are recognized on the accrual basis.Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period incurred. Fund equity is displayed as three components:(I)Invested in capital assets,net of related debt,which reflects the cost of capital assets less accumulated depreciation and less the outstanding principal of related debt not associated with unspent bond proceeds;(2)Restricted,which reflects the carrying value of assets less related liabilities that are restricted by outside covenants or by law;and (3)Unrestricted,which represents the remaining fund equity balance. The District distinguishes operating revenues and expenses from those revenues and expenses that are non-operating. Operating revenues are those revenues that are generated by water sales and wastewater services while operating expenses pertain directly to the furnishing of those services.Non-operating revenues and expenses are those revenues and expenses generated that are not directly associated with the normal business of supplying water and wastewater treatment services. The District recognizes revenues from water sales,wastewater revenues and meter fees as they are earned.Taxes and assessments are recognized as revenues based upon amounts reported to the District by the County of San Diego,net of allowance for delinquencies of$35,343 and $35,826 at June 30,2006 and 2005,respectively. Additionally,capacity fee contributions received in an amount corresponding to expansion specific operating expenses are offset against these expenses and included in Cost of Water Sales in the Statement ofRevenues and expenses and Changes in Net Assets. When both restricted and unrestricted resources are available for use,it is the District's policy to use restricted resources first,then unrestricted resources as they are needed. The accounting policies of the District conform to generally accepted accounting principles (GAAP)as applicable to governmental enterprise funds.In accordance with GASB Statement 20,the District has elected to follow all GASB Pronouncements and apply all Financial Accounting Standards Board Statements and Interpretations issued on or before November 30,1989,with the exception of those that conflict with or contradict GASB Pronouncements. OTAY WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES·Continued C)Statement of Cash Flows For purposes of the Statement of Cash Flows,the District considers all highly liquid investments (including restricted assets)with a maturity period,at purchase,of three months or less to be cash equivalents. D)Investments As a governmental entity other than an external investment pool in accordance with GASB 31,the District's investments are stated at fair value,which is determined using selected basis.Short-term investments are reported at cost,which approximates fair value.Investments in government obligations are valued on over-the-counter bid quotations available at year-end.Cash deposits are reported at carrying amount,which reasonably estimates fair value.Investments in governmental investment pools are reported on the fair value per share,of the pool's underlying portfolio. E)Inventory and Prepaids Inventory consists primarily of materials used in the construction and maintenance of the water and sewer system and is valued at weighted average cost.Both inventory and prepaids use the consumption method whereby they are reported as an asset and expensed as they are consumed. F)Capital Assets Capital assets are recorded at cost,where historical records are available,and at an estimated historical cost where no historical records exist.Capital assets purchased in excess of $5,000 are capitalized if they have an expected useful life of two years or more.The cost of purchased and self-constructed additions to utility plant and major replacements of property are capitalized.Costs include materials,direct labor,transportation,and such indirect items as engineering, supervision,employee fringe benefits,and interest incurred during the construction period.Repairs,maintenance,and minor replacements of property are charged to expense.Donated assets are capitalized at their approximate fair market value on the date contributed. The District capitalizes interest on construction projects up to the point in time that the project is substantially completed.Capitalized interest is included in the cost ofwater system assets and is depreciated on the straight-line basis over the estimated useful lives of such assets. Depreciation is calculated using the straight-line method over the following estimated useful lives: Water System Engineering Equipment Buildings Power Operated Equipment Transportation Equipment Other Equipment Reclaimed Water System Sewer System 15-70 Years 2-50 Years 30-50 Years 5-10 Years 2-4 Years 2-10 Years 50-75 Years 25-50 Years OTAY WATER DISTRICT Notes to Financial Statements Years Ended·June 30,2006 and 2005 1)REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES·Continued G)Compensated Absences In accordance with GASB Statement No.16,a liability is recorded for unused vacation and sick leave balances since the employees'entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time-off or payment upon termination or retirement. H)Restricted Assets and Liabilities Certain current liabilities have been classified as current liabilities payable from restricted assets as they will be funded from restricted assets. I)Allowance for Doubtful Accounts The District charges doubtful accounts arising from water sales receivable to bad debt expense when it is probable that the accounts will be uncollectible.Uncollectible accounts are determined by the allowance method based upon prior experience and management's assessment of the collectibility ofexisting specific accounts. J)Use of Estimates The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. K)Property Taxes Tax levies are limited to I%of full market value (at time of purchase)which results in a tax rate of $1.00 per $100 assessed valuation,under the provisions of Proposition 13.Tax rates for voter-approved indebtedness are excluded from this limitation. The County of San Diego (the "County")bills and collects property taxes on behalf of the District.The County's tax calendar year is July I to June 30.Property taxes attach as a lien on property on March I.Taxes are levied on July I and are payable in two equal installments on November I and February I.and become delinquent after December 10 and April 10,respectively. L)Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. 2)CASH AND INVESTMENTS The primary goals of the District's Investment Policy are to assure compliance with all Federal,State,and Local laws governing the investment of funds under the control of the organization,protect the principal of investments entrusted,and generate income under the parameters ofsuch policies. The District's Investment Policy and State statues authorize the District to invest in obligations of the U.S.Treasury,agencies and instrumentalities,prime commercial paper,repurchase agreements,and negotiable certificates of deposits.Funds may also be invested in the State Treasurer's Local Agency Investment Fund (LAIF)and the San Diego County Pooled Fund. OTAY WATER DISTRICT Notes to Financial.Statements Years Ended Jnne 30,2006 and 2005 2)CASH AND INVESTMENTS -Continued Cash and Investments are classified in the accompanying financial statements as follows: Statement ofNet Assets: Cash and Cash Equivalents Investments Total Cash and Investments Cash and investments consist of the following: Cash on Hand Deposits with Financial Institutions Investments Total Cash and Investments $13,755,907 62,596,513 $76.352.420 $2,800 1,109,799 75,239,821 $76.352.420 Investments Authorized by the California Government Code and the District's Investment Policy The table below identifies the investment types that are authorized for the District by the California Government Code (or the District's Investment Policy,where more restrictive).The table also identifies certain provisions of the California Government Code (or the District's Investment Policy,where more restrictive)that address interest rate risk,credit risk, and concentration of credit risk.This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the District,rather than the general provisions of the California Government Code or the District's Investment Policy. Authorized Investment Type Local Agency Bonds U.S.Treasury Obligations Federal Agency Securities Certificates of Deposit Repurchase Agreements Medium-Term Notes Commercial Paper Money Market Mutual Funds County Pooled Investment Funds Local Agency Investment Fund (LAIF) Maximum Maturity 5 years 5 years(2) 5 years I year I year 5 years 180 days N/A N/A N/A Maximum Percentage OfPortfolio() None None 70% 30% 15% 15% 15% 15% None None Maximum Investment In One Issuer None None None None None None 10% None None None (I)Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. (21 No more than 30%of the portfolio shall exceed two years to maturity. OTAY WATER DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006and 2005 2)CASH AND INVESTMENTS -Continued Investments Authorized by Debt Agreements Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements,rather than the general provisions of the California Government Code or the District's Investment Policy. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates which will adversely affect the fair value of an investment. Generally,the longer the maturity of an investment,the greater the sensitivity of its fair value to changes in market interest rates.One of the ways that the District manages its exposure to interest rates risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities,so that a portion of the portfolio is maturing or coming close to maturity evenly over time,as necessary,to provide the cash now and liquidity needed for operations. Information about the sensitivity ofthe fair values ofthe District's investments (including investments held by the bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the District's investments by maturity. Remaining Maturity (in Months) Investment Type 12 Months Or Less 13 to 24 25 to 60 Months Months More Than 60 Months U.S.Treasury Securities Federal Agency Securities Local Agency Investment Fund (LAIF) San Diego County Pool Total Disclosures Relating to Credit Risk $8,938,125 $8,938,125 $$ 53,658,388 32,804,485 20,853,903 12,544,721 12,544,721 98,587 98,587 $75.239,821 $54.385,918 $20,853,903 $ $o Generally,credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment ofa rating by a nationally recognized statistical rating organization.Presented below is the minimum rating required by (where applicable)the California Government Code or the District's Investment Policy,or debt agreements,and the actual rating as of year end for each investment type. Minimum Exempt Rating as ofYear End Legal From Not Investment Type Rating Disclosure AAA Aa Rated U.S.Treasury Securities $8,938,125 $8,938,125 $$$ Federal Agency Securities 53,658,388 N/A 53,658,388 Local Agency Investment Fund 12,544,721 N/A 12,544,721 San Diego County Pool 98,587 N/A 98,587 Total $75.239,821 $8,938,125 $53,658,388 $0 $12,643,308 OTAy WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 2)CASH AND INVESTMENTS·Continued Concentration of Credit Risk The investment policy of the District contains no limitation on the amount that can be invested in anyone issuer beyond that stipulated by the California Government Code.Investments in anyone issuer (other than U.S.Treasury securities,mutual funds,and external investment pools)that represent 5%or more oftotal District investments are as follows: Issuer Federal Home Loan Bank Custodial Credit Risk Investment Type Federal Agency Securities $ Reported Amount 53,658,388 Custodial credit risk for deposits is the risk that,in the event of the failure of a depository financial institution,a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party.The custodial credit risk for investments is the risk that,in the event of the failure of the counterparty (e.g.,broker- dealer)to a transaction,a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.The California Government Code and the Entity's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments,other than the following provision for deposits:The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by depository regulated under state law (unless so waived by the governmental unit).The market value of the pledged securities in the collateral pool must equal at least 110%of the total amount deposited by the public agencies.California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150%ofthe secured public deposits. As of June 30,2006,$796,084 of the District's deposits with financial institutions in excess of federal depository insurance limits were held in uncollatera.lized accounts.As ofJune 30,2006,District investments in the following investment types were held by the same broker-dealer (counter party)that was used by the District to buy the securities: Investment Type Reported Amount U.S.Treasury Securities Federal Agency Securities Local Agency Investment Fund (LAIF) $8,938,125 53,658,388 The District is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon District's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).The balance available for withdrawal is based on the accounting records maintained by LAIF,which are recorded on an amortized cost basis. The LAIF is a special fund of the California State Treasury through which local governments may pool investments.The District may invest up to $40,000,000 in the fund.Investments in LAIF are highly liquid,as deposits can be converted to OTAY WATER DISTRICT Notes·to Financial Statements Years Ended June 30,2006 and 2005 2)CASH AND INVESTMENTS·Continued cash within 24 hours without loss of interest.Investments with LAIF are secured by the full faith and credit of the State of California.The yield ofLAIF during the quarter ended June 30,2006 was 4.53%.The carrying value and estimated market value of the LAIF Pool at June 30,2006 was $63,481,426,759 and $63,366,260,064,respectively.The District's share of the Pool at June 30,2006 was approximately 0.020 percent. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).The balance available for withdrawal is based on the accounting records maintained by LAIF,which are recorded on an amortized cost basis.Included in LAIF's investment portfolio are structured notes and asset-backed securities totaling $225,000,000 and $1,400,919,000,respectively.LAIF's and the District's exposure to risk (credit,market or legal)is not currently available. The LAIF has oversight by the Local Investment Advisory Board.The LAIF Board consists offive members as designated by statute.LAIF is also regulated by California Government Code Section 16429. San Diego County Pooled Fund As permitted by its Investment Policy,the District has placed funds with the San Diego County Pooled Fund.The pool may invest some of their portfolios in derivatives.Detailed information on derivative investments held by this pool is not readily available. Collateral for Deposits All cash and certificates ofdeposits are entirely insured or collateralized. Under the provisions of the California Government Code,California banks and savings and loan associations are required to secure the District's deposits by pledging government securities as collateral.The market value of the pledged securities must equal at least 110%of the District's deposits.California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150%of the District's total deposits. The District may waive the 110%collateral requirement for deposits which are insured up to $100,000 by the FDIC. OTAY WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 3)CAPITAL ASSETS The following is a summary ofchanges in Capital Assets for the year ended June 30,2006: Beginning Ending Balance Additions Deletions Balance Capital Assets,Not Depreciated $Land 12,215,546 $278,516 $$12,494,062 Construction in Progress 45,144,448 38,365,427 (24,640,634)58,869,241 Total Capital Assets Not Depreciated 57,359,994 38,643,943 (24,640,634)71,363,303 Capital Assets,Being Depreciated Infrastructure 390,927,657 28,868,342 419,795,999 Field Equipment 9,030,438 175,656 (3,551 )9,202,543 Buildings 16,660,604 809,395 17,469,999 Transportation Equipment 2,782,493 151,576 2,934,069 Communication Equipment 209,103 311,437 520,540 Offiee Equipment 8,382,914 295,692 (213,644)8,464,962 Total Capital Assets Being Depreciated 427,993,209 30,612,098 (217,195)458,388,112 Less Accumulated Depreciation: Infrastructure 101,686,388 8,471,264 110,157,652 Field Equipment 8,123,774 248,532 (3,551 )8,368,755 Buildings 3,943,295 550,013 4,493,308 Transportation Equipment 2,289,674 267,533 2,557,207 Communication Equipment 183,142 12,328 195,470 Office Equipment 6,646,219 557,785 (212,565)6,991,439 Total Accumulated Depreciation 122,872,492 10,I07,455 (216,116)132,763,831 Total Capital Assets Being Depreciated,Net 305,120,717 20,504,643 (1,079)325,624,281 Total Capital Assets,Net $362,480,711 $59,148,586 $(24,641,713)$396,987,584 Depreciation expense for the year ended June 30,2006 and 2005 was $10,107,455 and $10,524,134,respectively. 4)OTHER NON·CURRENT ASSETS Contracts receivable totaled $92,375 and $105,600,net of no allowance as ofJune 30,2006 and 2005,respectively. Deferred bond issue costs totaled $555,550 and $586,950,net of accumulated amortization of $326,552 and $295,152 as of June 30,2006 and 2005,respectively.There was a 1993 COPS refunding transaction as of June 30,2006.The costs are amortized on the straight-line method based on the estimated term of the related bond debt.Amortization expense of $31 ,400 and $366,393 for the years ended June 30,2006 and 2005 is included with miscellaneous expense. OTAYWATERDISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 5)LONG-TERM DEBT Long-term liabilities for the year ended June 30,2006 were as follows: Beginning Balance Additions/ Amortization Retirements Ending Balance Due Within One Year 380,000 General Obligation Bonds: Improvement District No. 27 Unamortized Bond Discount Deferred Amount of Funding $9,955,000 $ (125,748) (735,770) 7,397 40,876 $365,000 $9,590,000 $ (118,351 ) (694,894)_ Net General Obligation Bonds 9,093,482 48,273 365,000 8,776,755 380,000 300,000 490,000 Certificates ofParticipation: 1996 Certificates of Participation 2004 Certificates of Participation Unamortized Discount 13,400,000 12,270,000 (16,393)745 300,000 445,00 13,100,000 11,825,000 (15,648)_ Net Certificates of Participation Notes Payable State Water Resource Control Board Capital Leases Vactor 25,653,607 1.956,871 100,666 745 745,000 297,834 49,077 24,909,352 1,659,037 51,589 790,000 308,259 51,589 Total Long-Term Liabilities General Obligation Bonds $36,804,626 ~$===!=49~,0~1~8 $1,456,911 $35,396,733 $1,529,848 In June 1998,the District issued $11,835,000 of General Obligation Refunding Bonds.The proceeds of this issue,together with other lawfully available monies,were to be used to establish an irrevocable escrow to advance refund and defease in their entirety the District's previous outstanding General Obligation Bond issue.These bonds are general obligations of Improvement District No.27 (ID 27)ofthe District.The Board of Directors has the power and is obligated to levy annual ad valorem taxes without limitation as to rate or amount for payment of the bonds and the interest upon all property which is within ID 27 and subject to taxation.The General Obligation Bonds are payable from District-wide tax revenues.The Board may utilize other sources for servicing the bond debt and interest. The refunding resulted in a deferred amount of $1,021,903;which is being amortized over the remaining life of the refunded debt.Amortization for the years ended June 30,2006 and 2005 was $40,876 for each year and is included in miscellaneous non-operating expenses.As of June 30,2006 and 2005,the amortized deferred amount of refunding is $694,894,and $735,770,respectively. The 1998 General Obligation Bonds have interest rates from 4.5%to 5%with maturities through the Fiscal Year 2023. OTAY WATER DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 5)LONG·TERM DEBT·Continued Future debt service requirements for the bonds are as follows: For the Year Ended June 30,Principal Interest 2007 $380,000 $457,935 2008 400,000 440,385 2009 415,000 422,047 2010 435,000 402,705 2011 455,000 382,235 2012-2016 2,610,000 1,557,095 2017-2021 3,320,000 825,000 2022-2023 I,575,000 79,625 $9,590,000 $4,567,027 The following General Obligation Bonds have been authorized by the Board of Directors,but were unissued as of June 30, 2006: Date Authorized December 30,1960 December 20,1960 August 23,1960 August 23,1960 March 18,1970 April 19,1971 May 17.1971 June 5,1972 May I,1978 November 1,1989 Certificates ofParticipation (COPs) Improvement District (ID) 5 6 I .3 I - 4 U -18 U -19 U -20 U -22 U -25 U -27 Construction Purpose Water System Sewer System Sewer System Water System Sewer System Water System Water System Water System Water System Water System Bond Amount $605,000 705,000 405,000 75,000 2,700,000 1,000,000 13,000,000 6,000,000 5,050,000 88,500,000 In June 1996,COPs with face value of $15,400,000 were also sold by the Otay Service Corporation to finance the cost of design,acquisition,and construction of certain capital improvements.An installment purchase agreement between the District, as Buyer,and the Corporation,as Seller,was executed for the scheduled payment of principal and interest associated with the COPs.The installment payments are to be paid from taxes and "net revenues,"as described in the installment agreement.The certificates bear interest at a variable weekly rate not to exceed 12%.The interest rate at June 30,2006 was 3.95%.The installment payments are to be paid annually at $350,000 to $900,000 from September I,1996 through September 1,2026. OTAY WATER·DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 5)LONG-TERM DEBT·Continued Certificates ofParticipation (COPs)•Continued In July 2004,Refunding Certificates of Participation (COPs)with a face value of $12,270,000 were sold by the Otay Service Corporation to advance refund $11,680,000 of outstanding 1993 COPs.An installment agreement between the District,as Buyer,and the Corporation,as Seller,was executed for the scheduled payment of principle and Interest associated with the COPs.The installment payments are to be paid from taxes and "net revenues,"as described in the installment agreement.The certificates are due in annual installments of $445,000 to $895,000 from September I,2005 through September I,2023; bearing interest at 3%to 4.625%. There is no aggregate reserve requirement for the COPs.Future debt service requirements for the certificates are as follows: For the Year 1996 COPs 2004 COPs Ended June 30 Principal Interest*Principal Interest 2007 $300,000 $517,450 $490,000 $448,384 2008 300,000 505,600 500,000 433,534 2009 400,000 493,750 515,000 418,309 2010 400,000 477,950 530,000 402,634 2011 400,000 462,150 545,000 386,236 2012-2016 2,500,000 2,050,050 3,020,000 1,635,461 2017-2021 3,300,000 1,489,150 3,645,000 985,556 2022-2026 4,400,000 758,400 2,580,000 180,097 2027 1,100,000 43,450 $1:1,I00,000 $6,797,950 $11.825,000 $4,890,211 *Variable Rate -Interest reflected at June 30,2006 at a rate of 3.95%. Note Payable At June 30,2006,the District had a 3.5%note payable to the State Water Resources Control Board.This note is unsecured and payable in annual installments of $366,325 including principal and interest from 1994 through 2010.The total amount outstanding at June 30,2006 and aggregate maturities of the note for the fiscal years subsequent to June 30,2006,are as follows: For the Year Ended June 30,Principal Interest 2007 $308,259 $58,066 2008 319,048 47,277 2009 330,214 36,111 2010 341,772 24,553 2011 359,744 12,591 $1,659,037 $178,598 OTAY WATER DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 5)LONG·TERM DEBT·Continued Capital Lease Payable The District leases a Vactor 2110 truck under a capital lease that expires in February of 2007.The economic substance of the lease is that the District is financing the acquisition of the asset through the lease,and accordingly,it is recorded in the District's assets and liabilities.The lease contains a 5.13%interest rate and is payable in annual installments of $54,236, including principal and interest,from 2005 through 2007. The annual future minimum lease payments together with the present value of the minimum lease payments under capital at June 30,2006 are as follows: 2007 Total Minimum Lease Payments Less:Amount Representing Interest Present Value ofMinimum Lease Payments The asset acquired through the capital lease is as follows: Asset: Field Equipment Less:Accumulated Depreciation Total $ $ $ 54,236 54,236 (2,647) 51,589 245,977 (105,419) 140,558 OTAY WATER DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 6)SEGMENT INFORMATION The District issued Certificates of Participation to finance certain capital improvements.Both the water and sewer departments are accounted for in a single fund.The sewer department operates the District's sewage treatment plant, sewage pumping stations,and collection systems,while the water department accounts for all other services.However, investors in the Certificates of Participation rely solely on the revenues generated by the individual activities for repayment. Summary financial information for the water and sewer departments is presented below. Condensed Statement of Net Assets Water Sewer Total Assets: Current Assets $85,132,865 $103,911 $85,236,776 Current Restricted Assets 318,090 318,090 Capital Assets 396,238,702 748,882 396,987,584 Other Non-current Assets 838,990 838,990 Total Assets 482,528,647 852,793 483,381,440 Liabilities: Current Liabilities 18,361,578 307,073 18,668,651 Current Liabilities Payable from Restricted Assets 8,046,662 8,046,662 Non-current Liabilities Payable from Restricted Assets 726,415 7,500 733,915 Non-current Liabilities 33,866,885 33,866,885 Total Liabilities 61,001,540 314,573 61,316,113 Net Assets: Invested in Capital Assets,Net of Related Debt 360,841,963 748,882 361,590,845 Unrestricted 60,685,144 (210,662)60,474,482 Total Net Assets $421,527,107 $538,220 $422,065,327 OTAY WATER DISTRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 6)SEGMENT INFORMATION·Continued Condensed Statement of Revenues,Expenses,and Changes in Net Assets Water Sewer Total Operating Revenues $45,529,994 $2,331,094 $47,861,088 Depreciation (10,107,455)(10,107,455) Other Operating Expenses (47,595,682)(1,899,957)(49,495,639) Operating Income (12,019,134)277.128 (11,742,006) Non-operating Revenues (Expenses): Investment Income 3,173,752 14,893 3,188,645 Taxes and Assessments 2,420,271 359,364 2,779,635 Availability Charges 557,851 51,248 609,099 Gain on Sale ofCapital Assets 142,922 142,922 Other Non-operating Revenues 1,835,710 1,835,710 Interest Expense (959,225)(959,225) Other Non-operating Expenses (217,818)(61,688)(279,506) Transfers 743,330 (743,330)°Capital Contributions 15,401,580 15,401,580 Change in Net Assets 11,079,239 (102,385)10,976,854 Total Net Assets,Beginning 410,447,868 640,605 411,088,473 Total Net Assets,Ending $421,527,107 $538,220 $422,065,327 Condensed Statement ofCash Flows Water Sewer Total Net Cash Provided (Used)by: Operating Activities 2,685,328 215,440 2,900,768 Non-Capital Financing Activities 3,884,803 (281,581 )3,603,222 Capital and Related Financing Activities (31,065,846)51,248 (31,014,598) Investing Activities 13,724,131 14,893 13,739,024 Net Increase (Decrease)(10,771,584)0 (10,771,584) Beginning Cash and Cash Equivalents 24,527,491 °24,527,491 Ending Cash and Cash Equivalents $13,755,907 $°$13,755,907 OTAY WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 7)NET ASSETS A summary ofchanges in net assets for the year ended June 30,2006 is as follows: Investment in Capital Assets Restricted Unrestricted Description (Net of Related Debt)Net Assets Net Assets Total Beginning of Year $325,676,089 $16,188,364 $69,224,020 $411,088,473 Income (Loss)Before Contributions (10,I07,455)2,429,509 3,253,220 (4,424,726) Capital Contributions Construction ofWater and Sewer Systems 5,933,655 5,933,655 Capacity Fees and Capital Contributions 8,205,779 8,205,779 Betterment Fees Annexation Fees 1,262,146 1,262,146 Decrease in Related Capital Debt/(Transfers)1,407,887 (1,407,887)0 Acquisition and Construction/(Transfers)38,680,669 (26,823,652)(II ,857,017)0 End ofYear $361 .590,845 $o $60,474,482 $422,065,327 Designated Net Assets In addition to the restricted net assets,unrestricted net assets have been designated by the Board ofDirectors for the following purposes as of June 30,2006 and 2005: Replacement Reserve Insurance Reserve Expansion Reserve Total 8)DEFINED BENEFIT PENSION PLAN Plan Description 2006 $22,876,118 16,428,945 5,772,470 $45,077.533 2005 $26,888,665 16,532,037 4,619,864 $48,040,566 The District's defined plan,(the "Plan"),provides retirement and disability benefits,annual cost-of-living adjustments,and death benefits to plan members and beneficiaries.The Plan is part of the Public Agency portion of the California Public Employees'Retirement System (CaIPERS),an agent multiple-employer plan administered by CaIPERS,which acts as a common investment and administrative agent for participating public employers within the State of California.A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees'Retirement Law. The Plan selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through District resolution.CalPERS issues a separate Comprehensive Annual Financial Report.Copies of the CaIPERS' annual financial report may be obtained from the CalPERS Executive Office,400 P Street,Sacramento,California 95814. OTAY WATER DISTRICT Notes to FinancialStatements Years Ended June 30,2006 and 2005 8)DEFINED BENEFIT PENSION PLAN -Continued Funding Policy Active members in the Plan are required to contribute 8%of their annual covered salary.The District has elected to contribute 7%on behalf of its employees.The District is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members.The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration.The required employer contribution rate for the fiscal year ended June 30,2006 was 20.869%.The contribution requirements of the Plan members are established by State statute and the employer contribution rate is established and may be amended by the CaIPERS. Annual Pension Costs For the fiscal year ended June 30,2006,the District's annual pension cost and actual contribution was $2,120,529.The required contribution for the fiscal year ended June 30,2006,was determined as part of the June 30,2003 actuarial valuation. The following is a summary ofthe actuarial assumptions and methods: Valuation Date Actuarial Cost Method Amortization Method Average Remaining Period Asset Valuation Method Actuarial Assumptions: Investment Rate ofReturn Projected Salary Increase Inflation Payroll Growth Individual Salary Growth June 30,2003 Entry Age Actuarial Cost Method Level Percent of Payroll 18 Years as of the Valuation Date 3 Year Smoothed Market 7.75%(Net of Administrative Expenses) 3.25%to 14.20%Depending on Age,Service,and Type of Employment 3.00% 3.25% A merit scale varying by duration of employment coupled with an assumed annual inflation component of3.00%and an annual production growth of0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the Plan's date of entry into CaIPERS. Subsequent Plan amendments are amortized as a level percentage of pay over a closed 20-year period.Gains and losses that occur in the operation of the plan are amortized over a rolling period,which results in an amortization of 10%ofunamortized gains and losses each year.If the plan's accrued liability exceeds the actuarial value of the plan assets,then the amortization payment ofthe total unfunded liability may be lower than the payment calculated over a 30-year amortization period. THREE YEAR TREND INFORMATION FOR PERS Fiscal Year 6/30/04 6/30/05 6/30/06 Annual Pension Cost (APC) 1,095,740 1,684,657 2,120,529 Percentage of APC Contributed 100% 100% 100% Net Pension Obligation o o o OTAY WATER DISTRICT Notes to Financial Statements Years Ended June 30,2006 and 2005 9)POST EMPLOYMENT BENEFITS In addition to the pension benefits described in Note 8,it is the District's practice and policy to provide certain life insurance and health care benefits for eligible retired employees,directors and eligible dependents.These benefits vary based on the hire date of the employee.All retired employees receive life insurance benefits provided by the District ($3,000 to age 70 for employees and $1,000 to age 70 for spouse). For retiring employees hired prior to January I,1981,and who are age 55 or over with five years of continuous service at retirement,the District provides dental and health care benefits and prescription drug coverage. For retiring employees hired on or after January I,1981 and before July I,1993,the District provides health care benefits and prescription drug coverage if,at retirement,the employees have neither: Attained age 60 with age plus years ofcredited service equal to or greater than 70 (with dental benefits provided)or, Attained age 55 but not age 60 with age plus years of credited service equal to or greater than 75 (without dental henefits provided). For retired directors who commenced office prior to January I,1995,and have attained age 60 with at least twelve years service as a director,the District provides dental and health care benefits and prescription drug coverage. Expenses for these post retirement benefits are recognized as insurance premiums and are paid as retirees report claims under the health insurance program described in Note 12.Post retirement benefits expense of $641,464 and $551 ,062,were recognized for 59 and 53 eligible retirees,for the year ended June 30,2006 and 2005,respectively. 10)WATER CONSERVATION AUTHORITY The District formed the Water Conservation Authority (the "Authority"),a Joint Powers Authority,with other local entities to construct,maintain and operate a xeriscape demonstration garden in the furtherance of water conservation.The authority is a non-profit public charity organization and is exempt from income taxes.During the year ended June 30,2006 and 2005,the District contributed $0 and $35,894,respectively,for the development,construction and operation costs of the xeriscpae demonstration garden. A summary of the Authority's June 30,2005 audited financial statement is as follows (latest report available): Assets Liabilities Revenues,Gains and Other Support Changes in Net Assets $2,619,829 34,460 446,595 (305,916) OA OTAy WATER DISTRICT Notes to Financial Statements Years Ended J nne 30,2006 and 2005 11)COMMITMENTS AND CONTINGENCIES Construction Commitments The District had committed to capital projects under construction with an estimated cost to complete of $5,J67,946 at June 30, 2006. Litigation Certain claims,suits and complaints arising in the ordinary course of operation have been filed or are pending against the District.In the opinion ofthe staff and counsel,all such matters are adequately covered by insurance,or if not so covered,are without merit or are of such kind,or involved such amounts,as would not have significant effect on the financial position or results ofoperations ofthe District if disposed ofunfavorably. Refundable Terminal Storage Fees The District has entered into an agreement with several developers whereby the developers prepaid the terminal storage fee in order to provide the District with the funds necessary to build additional storage capacity.The agreement further allows the developers to relinquish all or a portion of such water storage capacity.If the District grants to another property owner the relinquished storage capacity,the District shall refund to the applicable developer $746 per equivalent dwelling unit (EDU). There were 17,867 EDUs that were subject to this agreement.At June 30,2005,1,750 EDUs had been relinquished and refunded,13,323 EDUs had been connected,and 2,794 EDUs had neither been relinquished nor connected.At June 30,2006, 1,750 EDUs had been relinquished and refunded,13,412 EDUs had been connected,and 2,705 EDUs have neither been relinquished nor connected. Developer Agreements The District has entered into various Developer Agreements with developers towards the expansion of District facilities.The developers agree to make certain improvements and after the completion of the projects the District agrees to reimburse such improvements with a maximum reimbursement amount for each developer.Contractually,the District does not incur a liability for the work until the work is accepted by the District.As of June 30,2006,none ofthe 18 outstanding developer agreements had been accepted,however it is anticipated that the District will be liable for an amount not to exceed $2,949,428 at the point ofacceptance,accordingly,the District did not accrue a liability as ofyear end. 12)RISK MANAGEMENT General Liability The District is exposed to various risks of loss related to torts,theft,damage and destruction of assets,errors and omissions, and natural disasters.The District pays an annual premium for commercial insurance covering general liability,excess liability,property,automobile,public employee dishonesty,and various other claims.Coverage limits range up to $100 million. OTAY WATER DISrRICT Notes to Financial Statements Years Ended Jnne 30,2006 and 2005 12)RISK MANAGEMENT -Continued Workers'Compensation The District is a member of the Association of California Water Agencies Joint Powers Insurance District (Joint Powers).The Joint Powers is a risk-pooling self-insurance district,created under the provision of California Government Code Sections 6500 et.Seq.The Joint Powers is governed by a board composed of members from participating agencies.The purpose of the Joint Powers is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage.The District is insured up to $25,000,000 for worker's compensation with no deductible.Separate financial statements of the Joint Powers may be obtained at ACWA Joint Powers Insurance Authority,5620 Birdcage Street,Suite 200,Citrus Heights,CA 95610-7632. Health Insurance The District maintains a self-insurance program covering all of its employees,retirees,and other dependents.Health claims are processed and administered through a health insurance administrator and paid by the District upon presentation.The District has obtained a stop-loss insurance policy to cover individuals with claims exceeding $45,000.The District has estimated accrued claims to be $422,327 and $299,700 at June 30,2006 and 2005,respectively.Accrued health costs are included in other accrued liabilities. Adequacy of Protection During the past three fiscal (claims)years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage.There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 13)INTEREST EXPENSE Interest expense for the year ended June 30,2006 and 2005,is as follows: 2006 2005 Amount Expensed $959,225 $1,327,844 Amount Capitalized as a Cost of Construction Projects 460,535 110,764 Interest Paid $1.419,760 $1.438,608 Required upplementary I nfonnation OTAY WATERDISTRICt Required Supplementary Information Years Ended June 30,2006 and 2005 SCHEDULE OF FUNDING PROGRESS FOR PERS Actuarial Accrued UAALas a Actuarial Actuarial Liability Unfunded Percentage of Valuation Value of (AAL)Entry AAL Funded Covered Covered Date Assets Age (UAAL)Ratio Payroll Payroll (A)(B)(B -A)(AlB)(C)[(B-A)/C] 6/30/02 Miscellaneous $28.360,731 $36,760,469 $8,399,738 77.2%$8,594,245 97.7% 6/30/03 Miscellaneous $29,042,368 $41,428,694 $12,386.326 70.1%$9,058,232 136.7% 6/30/04 Miscellaneous $31.59 \,156 $45,156,690 $13,565,534 70.0%$9,764,596 138.9% STATISTICAL SECTION OTAy WATER DISTRICT Net Assets by Component Last Six Fiscal Years Fiscal Invested in Capital Assets Total Year Net of Related Debt Restricted Unrestricted Net Assets 2006 $361,590,845 $(2)$60,474,482 $422,065,327 2005 325,676,089 16,188,364 69,224,020 411,088,473 2004 291,863,666 23,853,441 67,244,139 382,961,246 2003 269,579,907 40,945,837 49,828,535 360,354,279 2002 245,290,752 46,866,439 45,580,508 337,737,699 2001 (1)237,230,807 42,923,480 41,854,311 322,008,598 NET ASSETS 20062005200420032002 $10,000,000 $20,000,000 - $30,000,000 $40,000,000 - $50,000,000- $60,000,000- $70,000,000-- Fiscal Year Ii!J ~estricted. '.-" _.Unr~stricted_.1 (I)The District implemented CASB 34 in Fiscal Year 2001. (2)During the current year all restricted funds were used to pay for major capital improvements in the District's Potable Water System and Reclaimed Water System. Source:Otay Water District OTAY WATER DISTRICT Changes in Net Assets Last SixFiscal Years Total Non-Operating Income(Loss)Change Fiscal Operating Operating Operating Revenues/Before Capital Capital in Net Year Revenues Expenses Income (Expenses)Contributions Contributions Assets 2006 $47,861,088 $59,603,094 $(11,742,006)$7,317,280 $(4,424,726)$15,401,580 $10,976,854 2005 43,335,915 56,510,886 (13,174,971)6,332,893 (6,842,078)34,969,305 28,127,227 2004 41,539,293 51,516,096 (9,976,803)3,484,492 (6,492,311 )29,099,278 22,606,967 2003 36,961,980 46,143,486 (9,181,506)4,517,049 (4,664,457)22,616,580 17,952,123 2002 37,312,385 43,509,038 (6,196,653)6,193,303 (3,350)15,732,451 15,729,101 2001 22,598,438 40,203,049 (17,604,61 I)10,526,110 (7,078,501 )30,209,604 23,131,103 CHANGES IN NET ASSETS 20062005200420032002 --------- 2001 $5,000,000 .' $O-I'L~-~~~-----r---""------,-- $10,000,000- $15,000,000 $20,000,000 . $25,000,000- $30,000,000 Fiscal Year Note:The District implemented GASB 34 infisml year 2001. Source:Otay Water District ,.OTAY WATER DISTRICT OT/-'.V 'Operating Revenues by Source LastTen Fiscal Years Fiscal Wastewater Connection and Percent Year Water Sales Revenue Other Fees Total Change 2006 $43,755,610 $2,328,582 $1,776,896 $47,861,088 14.2% 2005 39,348,056 2,017,992 540,055 41,906,103 0.9% 2004 39,044,712 1,774,366 720,215 41,539,293 12.4% 2003 34,621,890 1,648,227 691,863 36,961,980 -0.9% 2002 34,980,289 2,031,855 300,241 37,312,385 65.1% 2001 20,645,462 (1 )1,578,581 374,395 22,598,437 -31.5% 2000 30,928,092 1 742,537 333,389 33,004,018 24.2% 1999 24,732,564 1,544,975 293,908 26,571,447 13.6°k 1998 21,551,988 1,679,145 161,022 23,392,155 -11.1 % 1997 24,530,385 1.676,670 120,636 26,327,691 2.8'Yc TOTAL OPERATING REVENUES 50,000,000 45,000,000 - 40,000,000- 35,000,000 30,000,000 25,000000 20,000,000- 15,000,000 lO,pOO,OOO 5,000,000 o 1997 (I)During the year ended June 30,2001,the District Board authorized three separate potable water rebates totaling $9,700,089.The rebates were accounted for as a reduction ofWater Sales. Source:Ota."Water District 28 OTAY WATERDISTRICT OperatingExpenses by Function Last Ten FiscalYears Fiscal Cost of Administrative Percent Year Water Sales Wastewater and General Depreciation Total Change 2006 $31,630,074 $2,313,278 $15,552,287 $10,I07,455 $59,603,094 5.5% 2005 29,655,869 2,521,861 13,809,022 10,524,134 56,510,886 9.7% 2004 27,899,376 2,446,603 11,081,599 10,088,518 51,516,096 11.6% 2003 24,477,487 2,548,881 9,310,381 9,806,737 46,143,486 5.0% 2002 23,516,357 2,404,720 8,388,045 9,645,918 43,955,040 9.3% 2001 20,998,534 2,447,034 8,014,245 8,743,236 40,203,049 9.5% 2000 19,416,956 1,833,775 7,444,505 8,023,280 36,718,516 11.5% 1999 16,730,248 1,519,670 6,466,836 8,225,750 32,942,504 14.0'7'0 1998 14,658,041 1,488,123 5,737,077 7,007,965 28,891,206 1.6% 1997 14,487,786 1,766,317 5,655,773 6.527.408 28,437,284 2.5% TOTAL OPERATING EXPENSES $60,000.000 $50,000,000 $40,000,000 $30,000,000 $20 00(>,000 $10,000,000 $0 Source:Ollly Water District (]Co~t ofWater Sales oWastewater 29 Administrative and General ...........--- •Depreciation OTAYWATER DISTRICT NOll-Operating Revenues by Source Last Ten Fiscal Years Investment Taxes and Availability Percent Year Income Assessments Charges Miscellaneous Total Change 2006 $3,188,645 $2,779,635 $609,099 $1,978,632 $8,556,011 -11.3% 2005 $2,052,292 $2,326,526 $556,590 $4,714,941 (I)$9,650,349 35.6% 2004 1,097,449 3,071,685 1,132,278 1,816,967 7,118,379 -10.8% 2003 2,578,231 2,600,411 1,069,750 1.731,384 7,979,776 -3.6% 2002 4,466,383 2,381,170 1,052,222 373,818 8,273,593 -32.3% 2001 7,606,185 3,054,917 1,116,084 437,760 12,214,946 29.9% 2000 5,088,516 3,164,910 949,612 197,857 9,400,895 2.6% 1999 5,142,904 2,523,746 1,084,910 412,530 9,164,090 -17.6% 1998 6,462,771 2,795,952 1,284,987 579,775 11,123,485 6.9% 1997 6,288,527 3,034,605 1,084,262 0 10,407,394 6.7% TOTAL NON-OPERATING REVENUES $14,000,000 . $\2,000,000 $10.000,000 $8,000.OQO "',6.,000,000 $4,000,000 . $2,000,000 $-, 1--------------------- 1997 1998 1999 2000 200\2002 2003 2004 2005 2006 "Total Non-Operating Revenues (I)The DistriCI sold capital assets during 2005 which resulted in a gain of$2,196,655. Source:Otay Water District 30 OTAY WATER DISTRICT g Non-Operating Expenses by Function Last TenFiscal Years Percent Year Donations Interest Expense Miscellaneous Total Change 2006 $$959,225 $279,506 $1,238,731 -34.4% 2005 35,894 1,327,844 523,905 1,887,643 -48.1% 2004 59,220 1,252,307 2,322,360 3,633,887 4,9% 2003 68,756 947,099 2,446,872 3,462,727 18,8% 2002 131,225 1,503,063 L280,l04 2,914,392 3.3% 2001 145,500 1,543,336 1,131,114 2,819,950 -6.8% 2000 184,507 1,540,592 1,301,961 3,027,060 -31.0% 1999 1,602,883 (I)1,809,747 974,558 4,387,187 53.9% 1998 0 1,952,742 897,011 2,849,753 IIJ)% 1997 0 2,080,744 1,121,864 3,202,608 31.9% TOTAL NON-OPERATING EXPENSES $4,500.000 1 $4,000,000 -I I$3,500,000 $3.000,(XlO $2,500,000 $2,000,000 $1,500,000 1 1 $!'OOO'OO$OO ..l$500.000 '-__S'' 1997 1998 1999 2000 2001 2002 2003 -r- 2004 2005 2006 oMiscellaneous o Imerest Expense Donations (I)Donations are contributions to the Water Conservation Authority formed in 1999.See Note 9 in the Notes to Financial Statements for more information. Source:OtllY Water District 31 OTAY WATER DISTRICT Assessed Valuation of Taxable Property Within the District Last Ten Fiscal Years Fiscal Percent Ye~r Secured Unsecured Total Change 2006 $19,204,029,184 $361,636,280 $19,565,665,464 19.13% 2005 16,121,465,817 301,937,884 16,423,403,701 16.23% 2004 13,833,852,366 296,691,70 I 14,130,544,067 16.50% 2003 11,786,410,218 343,253,933 12.129,664,151 15.63% 2002 10,239,985,732 249,933,698 10,489,919,430 16.67% 2001 8,767,643,482 223,676,433 8,991,319,915 9.33% 2000 7,809,527,552 414,404,800 8,223,932,352 15.61% 1999 6,953,623,384 159,752,464 7,113,375,848 7.51% 1998 6,480,364,157 136,236,552 6,616,600,709 1.19% 1997 6.408,70 I,949 129,954,347 6,538,656,296 1.09% ASSESSED VALVATION OF PROPERTY $20,000,000 $18,000,000 $16,000,000 $14,000,000'""t:I=$12,000,000-:'CI~$10,000,000-.0.c:Eo<$8,000,000=.... $6,000,000 . $4.000,000- $2.000,000- $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Fiscal Year Source:County ofSan Diego Auditor and Controller OTAY WATER DISTRICT Potable and Treated Water Produced and Sold Last Ten Fiscal Years Recycled Direct Fiscal Potable Water Billed Water Water Rate Year Purchases Sold Produced Base Usage Sewer 2006 17,972,146 14,723,988 537,3997 $10.25 $13.90 $30.90 2005 16,412,711 13,708,001 501,114.2 10.25 13.40 26.90 2004 18,424,007 14,711,176 568,588.7 10.25 13.30 23.35 2003 16,486,502 13,613,885 486,739.4 10.25 13.30 20.95 2002 17,084,537 13,723,241 471,580.6 10.25 13.30 20.95 2001 14,521,902 12,057,399 418,873.0 10.25 13.30 20.95 2000 14,801,644 12,023,682 408,636.4 10.25 13.30 20.95 1999 12,537,309 10,335,051 363,029.0 10.25 13.30 20.95 1998 9,963,479 9,164,466 425,407.0 10.25 [3.30 20.95 1997 10,521,918 9,791,072 451,669.3 10.25 13.30 20.95 POTABLE PURCHASES AND RECYCLED PRODUCED Thousands 20,000 15,000 10.000 S;()OO 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 •Potable Water Purchases •Recycled Produced I1iISewer (I)Based on Residential customer who use IO units per month.Unit shall mean 100 cubicfee or 748 gallons ofwater. OTAY WATER DISTRICT Meter Sales by Type Last Ten Fiscal Years Fiscal Year Potable Recycled Sewer Total 2006 788 47 836 2005 1,406 95 22 1,523 2004 2,125 64 38 2,227 2003 1,782 123 168 2,073 2002 2,308 33 102 2,443 2001 2,667 43 41 2,751 2000 2,485 78 105 2,668 1999 2,010 69 64 2,143 1998 1,126 58 34 1,218 1997 1.l15 32 20 1,167 METER SALES 2,500 2,000 L,500 1,000 500 1997 1998 1999 2000 200I 2002 2003 2004 2005 2006 Source:Otay Water District 01'AY WATERDtSTRICT Number of Customers by Service Type Last Ten Fiscal Years Fiscal Year Potable Recycled Sewer Total 2006 46,851 558 4,571 51,980 2005 46,042 483 4,570 51,095 2004 44,583 348 4,548 49,479 2003 42,438 312 4,510 47,260 2002 40,732 189 4,342 45,263 2001 38,502 128 4,240 42,870 2000 36,005 106 4,199 40,310 1999 32,773 59 4,094 36,926 1998 30,943 44 4,030 35,017 1997 29,021 20 3,996 33,037 NUMBER OF CUSTOMERS 60,000 40,000 20,000 Source:Otay Water District OTAY WATER DISTRICT Property Tax Levies and Collections Last Ten Fiscal Years LEVY (1) Fiscal 1%Property Special Total Total Net Percent Year Tax Assessments Levy Collections (1)Receivable (2)Collected 2006 1,420,049 2,519,927 3,939,976 3,935,983 3,993 100% 2005 1,173,319 2,430,267 3,603,586 3,455,852 147,734 96% 2004 1,844,604 2,442,356 4,286,961 4,108,581 178,379 96% 2003 1,541,362 2,246,865 3,788,227 3,721,776 66,452 98% 2002 1,314,354 2,305,191 3,619,545 3,558,I05 61,440 98% 2001 1,134,675 3,171,206 4,305,882 4,176,331 129,550 97% 2000 997,055 3,321,696 4,318,751 4,053,482 265,269 94% 1999 870,451 2,753,571 3,624,023 3,475,903 148,120 96% 1998 801,536 3,158,394 3,959,929 3,740,021 219,909 94% 1997 769,016 3,401,857 4,170,874 3,818,801 352,073 92% PROPERTY TAX LEVYS AND COLLECTIONS 20052004 'I 20Q3 Collections•Levies Hundreds $45,000 $40,000 $35,000 - $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 -'~''''''''''~'''''''''~-"'"'/'"''-~~-~-~~......,.-~~--,...-- 1997 1998 199~2000 2001 2002 (1)Levy and collections includes Current Secured,Current Unsecured and Supplemental HOE. (2)Net Receivable becomes a prior period balance in the next fiscal year. Source:Otay Water District OTAY WATERDISTRICT Water andSewer Rates Last Ten Fiscal Years Base Rate (Meter Size)1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Residential 3/4"$10.25 $10.25 $\0.25 $\0.25 $10.25 $10.25 $\0.25 $10.25 $\0.25 $10.25 I"16.50 16.50 16.50 \6.50 \6.50 16.50 \6.50 \6.50 16.50 16.50 \.5"32.50 32.50 32.50 32.50 32.50 32.50 32.50 32.50 32.50 32.50 Non-Residential &Others ill 3/4"20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 I"30.80 30.80 30.80 30.80 30.80 30.80 30.80 30.80 30.80 30.80 1.5"43.30 43.30 43.30 43.30 43.30 43.30 43.30 43.30 43.30 43.30 2"54.20 54.20 54.20 54.20 54.20 54.20 54.20 54.20 54.20 54.20 :'\"87.20 87.20 87.20 87.20 87.20 87.20 87.20 87.20 87.20 87.20 4"99.80 99.80 99.80 99.80 99.80 99.80 99.80 99.80 99.80 99.80 6"\99.50 \99.50 199.50 199.50 199.50 199.50 199.50 \99.50 199.50 199.50 10"380.50 380.50 380.50 380.50 380.50 380.50 380.50 380.50 380.50 380.50 Fire Services All Types 21.20 21.20 21.20 21.20 21.20 21.20 21.20 21.20 21.20 21.20 Usage Rate Residential: Tier I (1-5)1.01 1.01 1.01 1.01 1.01 1.01 1.0\1.0 I 1.01 1.05 Tier 2 (6-25)1.65 1.65 1.67 1.67 1.67 1.67 1.67 1.67 1.67 173 Tier 3 (26-35)1.79 1.79 1.81 1.8\1.8\1.8\1.8\ 1.8\1.81 1.88 Tier 4 (36-50)(I)2.1\2.1\2.\3 2.13 2.\3 2.13 2.13 2.13 2.65 2.75 Tier 5 (51+)2.62 2.62 2.65 2.65 2.65 2.65 2.65 2.65 Master Meter: Tier I (\-5)1.76 \76 \78 1.78 1.78 1.78 1.78 1.78 1.67 \73 Tier 2 (6-25)1.81 1.88 Tier3 (16+)2.65 2.75 Publicly-Owned 1.84 1.84 1.86 1.86 1.86 1.86 1.86 1.86 1.86 1.93 Commercial &Others (2)1.76 1.76 1.78 1.78 178 178 \78 \78 1.78 1.85 Recycled (Commercial)1.50 1.50 1.5\1.51 1.5\1.51 1.5\1.51 1.5 I 1.57 Recycled (Publicly-Owned)1.58 1.58 1.59 1.59 1.59 1.59 1.59 1.59 1.59 1.65 Sewer Rates 20.95 20.95 20.95 20.95 20.95 20.95 20.95 23.35 26.90 30.90 (1)Effective January 2005 the tier 5 has been eliminated and replaced by tier 4 (36+). (2)Others include Landscaping,Agricultural and Temporary Meters. Agricultural customers under Interim Agricultural Water Program (IA WP)shall receive a $0.33 discount per H.C.F. (3)In addtion,for service provided through one meter to more than one occupancy a fee of$3.21 will be charged for each unit in a multiple unit residential,commercial or industrial building. (4)Rates above not including Infrastructure Access Charge a pass through chargedfrom CWA and MWD. Source:Ota)'Water District TEN LARGEST CUSTOMERS -FISCAL YEAR 2006 %of Annual Water Customer Name Business Type Revenues Sales City of Chula Vista Publicly Owned $1,320,142 3.0% 2.State ofCalifornia Publicly Owned 948,696 2.2% 3.McMillin Construction (Potable)666,771 1.5% 4.County of San Diego Publicly Owned 665,694 1.5% 5.Eastlake III Business/Irrigation (Reclaimed)502,189 1.1% 6.Country Hills Apartments Residential (Master Meter)461,985 11% 7.Country Club Eastlake Irrigation (Reclaimed)417,029 1.0% 8.Steele Canyon Irrigation (Potable Permanent)319,216 0.7% 9.California Bank &Trust Irrigation (Reclaimed)284,783 0.7% 10.The EastLake Company Construction (Potable)214,593 0.5% Total $5,801,098 13.3('0 Estimated FY06 Water Sales $43,755,610 CUSTOMERS FISCAL YEAR 2006 Ten Largest 13% Others 87% OTAY WATER DISTRICT 0 IV Ratios ofOutstanding Debt by Type Last Ten Fiscal Years As a Share Fiscal Population GO Capital Per of Personal Year Estimate Bond COPS Notes Leases Total Capita Income (1) 2006 190.000 $8,776,755 $24,909,352 1,659,037 51,595 $35,396,739 186.30 0.48% 2005 186,000 $9,093,482 $25,653,607 1,956,871 100,666 $36,804,626 197.87 0.51% 2004 180.000 9,395,209 25,666,312 2,244,633 147,343 $37,453,497 208m 0.55% 2003 176.000 9,681,937 26,298,239 2,522,665 191,742 $38,694,583 219.86 0.62% 2002 166,000 9,953,664 26,915,166 2,791,295 $39,660,125 238.92 0.69% 2001 156,000 10,210,392 27,517,093 3,050.841 $40,778.326 261.40 0.77% 2000 147.000 10.452,118 28,004,021 3,301,610 $41,757.749 284m 0.87% 1999 142,000 10,683,845 28,480,948 3,543,899 $42,708,692 300.77 0.99% 1998 137,000 11,300,572 28,942,243 3.777,994 $44.020,809 321.32 1.13% 1997 130,000 13,397,230 29,400,717 4,004,173 $46,802,120 360.02 1.37% OUTSTANDING DEBT PER CAPITA 400.00 350.OQ 300.00 250.00 200.00 150.00 100.00 50.00 0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 •Debt Per Capita I (I)See the Demographics and Economic Statistics schedule for personal income data.Because per capita personal Income data were not available for 2006 the percentage for 2006 was calculated using pel'capita personal income for 2005. Source:Dtay Water District OTAY WATER DISTRICT OlAV Pledged Revenue Coverage Last Ten Fiscal Years Adjusted Net Revenue Debt Service Requirements Fiscal Adjusted Operating Available for Coverage Year Revenue (1)Expense (2)Debt Service Principal Interest Total Factor 2006 $59,990,213 $47,595,682 $12,394,531 $745,000 $924,490 $1,669,490 742% 2005 56,597,040 43,936,109 12,660,931 650,000 869,715 1,519,715 833% 2004 57,195,289 38,980,975 18,214,314 635,000 891,796 1,526,796 1,193% 2003 53,077,164 33,787,868 19,289,296 620,000 908,416 1,528,416 1,262% 2002 51,604,999 31,904,402 19,700,597 605,000 987,467 1,592,467 1,237% 2001 51,547,298 29,012,779 22,534,519 490,000 1,181,032 1,671,032 1,349% 2000 46,922,341 26,861,461 20,060,880 480,000 1,252,054 1,732,054 1,158% 1999 39,509,478 23,197,084 16,312,394 470,000 1,202,210 1,672,210 975% 1998 35,474,313 20,395,118 15,079,195 460,000 1,311,930 1,771,930 851% 1997 34,563,557 20,143,559 14,419,998 450,000 1,327,943 1,777,943 811% PLEDGED REVENUE COVERAGE 1997 1998 [999 2000 2001 2002 2003 2004 2005 2006 Il!1 Coverage Factor (I)Adjusted revenues exclude sewer revenues and taxes collected for improvement district 27 and are inclusive of capacity fees. (2)Adjusted operating expenses exclude sewer expenses and depreciation expense. (3)The District's bond convenants require a minimum coverage factor of 120%. Source Otay Water District "HI \' OTAy WATER DISTRICT Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Net Bonded Gross Debt Net Debt to Net Bonded Fiscal Population Assessed Bonded Service Bonded Assessed Debt Per Year Estimate Valuation Debt Funds Debt Valuation Capita 2006 190,000 $19,565,665,464 $8,776,755 $8,776,755 0.04%46.19 2005 186,000 16,423,403,70I 9,093,482 9,093,482 0.06%48.89 2004 180,000 14,130,544,067 9,395,209 9,395,209 0.07%52.20 2003 176,000 12,129,664,151 9,681,937 9,681,937 0.08%55.01 2002 166,000 10,489,919,430 9,953,664 9,953,664 0.09%59.96 2001 156,000 8,991,319,915 10,210,392 10,210,392 0.11%65.45 2000 147,000 8,223,932,352 10,452,118 10,452,118 0.13[10 71.10 1999 142,000 7,113,375,848 10,683,845 10,683,845 0.15%75.24 1998 137,000 6,616,600,709 11,300,572 11,300,572 0.17%82.49 1997 130,000 6,538,656,296 13,397,230 13,397,230 0.20%103.06 BONDEDDEBT RATIOS 2006·20052004200320022001200019991998 0.00%-""""=====:;==-~---­ 1997 0.05% 0.10% 0.15% 0.20% 0.25% Net B<:mded Debt to Assessed Valuation 1 i Source:owy Water District 34 OTAY WATER DISTRICT Computation ofDirect and Overlapping Bonded Debt June30,2006 2005-06 Assessed Valuation: Redevelopment Incremental Valuation: Adjusted Assessed Valuation: OVERLAPPING TAX ANDASSESSMENT DEBT: Metropolitan Water District OtayMunicipal Water District Improvement District No.25 OtayMunicipal Water District Improvement District No.27 Padre Dam Municipal Water District Improvement District No.CB Grossmont-Cuyamaca Community College District Southwestern CommunityCollege District Grossmont Union High School District SweetwaterUnion High School District Chula Vista CitySchool District San Ysidro School District Other School Districts City ofSan Diego SanDiego Open Space Park Facilities District No.I City of ChulaVista CommunityFacilities Distlict Chula Vista CitySchool District Community Facilities Districts Sweetwater Union High School District Community Facilities Districts City 1915 Act Bonds(Estimate) TOTAL GROSS OVERLAPPINGTAX AND ASSESSMENT DEBT Less:San Diego Open Space Park Facilities District No.I (self-supporting) TOTALNET OVERLAPPINGTAX AND ASSESSMENT DEBT DIRECT AND OVERLAPPING GENERALFUND DEBT: San Diego County General Fund Obligations San Diego County PensIon Obligations San Diego Superintendent ofSchools Certificates of Participation Otay Water DistrictCertificates ofParticipation Southwestern Community College District General Fund Obligations Grossmont Union High School District Certificates ofParticipation SweetwaterUnion High School DistrictCertificates of Participation Chula Vista City School District Certificates ofParticipation San Ysidro School District Certificates ofParticipation Other School District Certificates ofParticipation City ofChula Vista Certificates of Participation City ofChula Vista Pension Obligations City ofSan Diego General Fund Obligations San Miguel Consolidated Fire Protection District Certificates of Participation TOTAL GROSS DIRECT AND OVERLAPPING GENERALFUND DEBT Less:Otay Water DistrictCertificates of Participation (self-supporting) TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT GROSS COMBINED TOTAL DEBT NET COMB[NED TOTALDEBT $19.565,665,464 185.562.778 $19,380,102.686 Total Debt 6/30/2006 $389,565,000 265.000 9.590.000 340.000 145.599.623 90,570,090 179.890,422 82.615,000 88.410.000 57,784,363 1,624,007,604 11,520,000 19.930.000 274.590.000 7.700.000 198,398,838 79,049,263 $448,037.147 1.231,282,916 12.495,000 24,925,000 2.265,000 1,830.000 16,040,000 135.985.000 26,185,000 15.500.000 123,915.000 11,795,000 498.040.000 9,120,000 %Applicable (1) 1.32% 100 100 0.028 17.658 44.067 18.158 51.699 61.723 46.252 Various 0.893 0.893 100 100 2.523-100. Various 6.83% 6.825 6.825 100 44.067 18.158 51.699 61.723 46.252 Various 70.854 70.854 0.893 56.951 District's Share of Debt6/30/06 $5,[53,945 265,000 9,590,000 95 25,709,981 39.911.522 32.664.503 42,711,129 54.569.304 26,726,424 28,762,500 102,874 177.975 274,590,000 7,700.000 185,269,055 58.787.136 $792,691,443 177.975 $792,513.468 $30,578.535 84.035.059 852.784 24,925,000 998.118 332.291 8.292,520 83,934,022 12.111.086 3,798.789 87,798,734 8.357,229 4.447.497 5.193.931 $355,655,595 24,925,000 $330,730,595 (2)$1,148.347,038 $1,123,244,063 (I)Percentage ofoverlapping agency's assessed valuation located within boundaries of the district. (2)Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2005-06 Assessed Valuation: Total Gross Overlapping Tax and Assessment Debt Total Net OverlappingTax and Assessment Debt Ratios to Adjusted Assessed Valuation: Gross Combined DirectDebt ($24,925,000) NetCombined Direct Debt Gross CombinedTotal Debt Net Combined Total Debt STATESCHOOL BUILDING AID REPAYABLE AS OF6/30106:$10 Source.'CalillJl'llia MunicipalStatistics,fllc alld Otay Water District 4.05% 4.05% 0.13% 0.00% 5.93% 5.80% OTAy WATER DISTRICT Principal Employers Current Year and Nine Years Ago 2006 1997 Employer Employees Rank Employees Rank Federal Government State ofCalifornia 10,000+I San Diego Unified School District 10,000+2 10,000+3 University of California San Diego 10,000+3 10,000+6 County ofSan Diego 10,000+4 10,000+2 Sharp Healthcare 10,000+5 10,000+4 San Diego State University 5,000-9,999 6 Kaiser Permanente Medical Care Program 5,000-9,999 7 Sempra 5,000-9,999 8 SBC 5,000-9,999 9 Qualcomm 5,000-9,999 10 City of San Diego 10,000+I United States Government/Civilian 10,000+5 San Diego Community College District 5,000-9,999 7 Scripps Institution of Medicine &Science 5,000-9,999 8 State of California 5,000-9,999 9 US Postal Service/San Diego Division 5,000-9,999 10 Source:County ofSan Diego OTAYWATER DISTRICT DemographiC and Economic Statistics Last Ten Fiscal Years Per Capita Personal Personal Unemployment Year Population Income Income Rate 2006 (I) 2005 (2)296,410,404 38.6\4 4.60% 2004 293.656.842 111.434,714 37,965 5.10% 2003 290,656,005 104,050,\\9 35,620 5.60% 2002 287,984,799 100,655,726 34,719 5.60% 2001 285,\07,923 97,009,480 33,886 4.40% 2000 282,193,477 92,654,006 32,803 4.50% \999 275,\30,000 84,346,910 30,236 3.50% 1998 272,690,8\3 77,968,184 28,490 3.90% 1997 270,248,003 70,535,060 26,\96 4.70% UNEMPLOYMENT 5.00%; 4.50%· 4.00%· 3.50% 300%·~-. 1997 1998 1999 2000 2001 2002 2003 2004 2005 r I!l Unemployment Rate (I)Information for 2006 was not yet available at the time ofthis report. (2)Personal income data for 2005 not yet available. Source:COl/llty {!!"Sa/l DieMo OTAY WATERDISTRICT Numberof Employees by Function Last Ten Fiscal Years 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 General Manager 4 4 6 6 Finance 34 34 33 32 32 33 33 32 29 21 Operations/Maintenance 72 71 70 70 71 73 74 71 68 67 Engineering nnd Planning 15 13 16 18 24 27 32 JI 28 26 AdministrativeServices 19 20 21 24 22 25 21 20 18 16 IT and Strategic Planning (I)12 II 10 10 Development Services (2)17 17 17 13 Total 175 172 171 171 152 164 168 162 149 136 TOTAL EMPLOYEES 180 175 170 165 160 155 150 145 140 135 130 125· 1997 SOl/Tee:Dilly Water Dis/riel 1998 1999 2000r=2005 2006 OTAV WATER DISTRICT OlAV"~Active Metersby Size Last Ten Fiscal Years Meter Size 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 3/4"43.070 42.420 41.069 39.138 37.178 35.014 32.672 30.456 28.515 27.685 I"1,514 1.364 1.220 1.132 1.110 1.079 1.041 1.0lO 881 880 1-1/2"1.199 1.147 1.037 918 889 837 806 766 660 655 2"1.242 1.199 1.168 1.140 1.124 1.084 1.059 992 858 848 3"69 67 66 61 57 50 43 40 35 34 4"277 289 329 308 526 496 431 55 48 44 6"27 27 27 27 40 35 34 14 12 12 Others 1\12 15 26 35 35 25 12 1\9 Total 47.409 46.525 44.931 42.750 40.959 38.630 36.111 33.345 31.020 30.167 %Change 1.9%3.5%5.1%4.4%6.0%7.0%8.3%7.5%2.8%3.4% Increase 884 1.594 2.181 1.791 2.329 2.519 2.766 2.325 853 980 ACTIVE METERS 50,000 45,000 40,000' ;35,000 - 30,000 25,000 1997 1998 1999 2000 200l 2002 2003 2004 2005 2006 Source.Ota.\'Wilier District f.Total Acti ve Meters I OTAVWATERDISTRICT Demographics Statistics Last Ten Fiscal Years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Water System Service Area (Square Miles)125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5 125.5 Miles of Potable Water Main 470 484 501 539 554 576 594 609 623 663 Number of Operational Storage Reservoirs in Service 38 38 37 37 37 38 37 37 36 37 Water Storage Capacity (in Acre Feet)541.4 541.4 538.4 538.4 538.4 587.5 582.3 585.4 582.4 601.7 Total Water Connections (No.of Meters in Service)30,167 31,020 34,612 36,986 39,624 41,500 43,915 46,028 47,127 47,409 Number of Pump Stations 20 20 20 20 20 21 21 21 21 22 Number of Potable Water Valves 11,279 11,846 12,340 13,519 14,296 15,073 15,830 16,204 17,696 18,042 Sewer System Miles of Sewer Lines 80.0 80.9 81.3 82.1 82.9 83.5 84.8 85.4 85.9 86.2 Number ofTreatment Plants I 1 Treatment Plant Capacity (Million Gallons per Day)1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 Total Flows for Fiscal Year 2006 (in Million Gallons)445 456 413 442 452 455 463 479 506 483 Recycled System Miles of Recycled Water Mains 20.0 20.8 29.3 37.7 40.3 49.2 60.6 70.7 76.4 77.6 Number of Pumping Facilities 2 2 2 2 Number of Acre Feet Storage 36.8 86.9 86.9 86.9 86.9 86.9 97.3 97.3 97.3 97.3 Number of Recycled Water Valves 256 282 437 542 588 730 948 1,097 1,155 1,189 POTABLE WATER MAINS 700 --- 600 500 '"<I.l==400::; 30b 200 IOQ 0 1997 1.998 1999 2000 2001 2002 2003 2004 2005 ~OO_6 Fiscal Year Source·Otay Water District STAFF REPORT AGENDA ITEM 7b TYPE MEETING:Regular Board SUBMITTED BY:Joseph R.Beac~~ Chief Financial Officer MEETING DATE: W.O.lG.F.NO: November 1,2006 DIV.NO.All APPROVED BY: (Chief) APPROVED BY: (Asst.8M):Germ~Assistant General Manager SUBJECT:Informational Item on a Public Hearing Under Proposition 218 GENERAL MANAGER'S RECOMMENDATION: This is an informational item only,to inform the Board of the need to hold a public hearing to receive public comment on the pending rate increases.The hearing is planned for the January board meeting,after which the Board may affirm the rate changes. COMMITTEE ACTION: See Attachment A. PURPOSE: This is an informational item only,to inform the Board of the need to hold a public hearing to receive public comment on the pending rate increases.The hearing is planned for the January board meeting,after which the Board may affirm the rate changes. ANALYSIS: District Counsel and the Financial Advisor both recommend that in light of the District's desire to issue debt,that the District hold a Prop 218 hearing covering the pending rate changes.Subsequent to the "Bighorn -Desert View Water Agency v.Virtil (Kelley)"case the bond market's view of what constitutes compliance with Prop 218 has changed.By holding a properly noticed Prop 218 hearing,Counsel and the Financial Advisor believe that the District will avoid any question of compliance and thereby protect the District's ability to issue the planned debt. FISCAL IMPACT: In order to more clearly comply with the intent of Prop 218, staff will not implement the rate changes until after the hearing date and reaffirmation of the rates by the Board.This is a three day delay from the originally approved implementation date.Due to the time of year and the low water use,this rescheduling of the rate changes is expected to reduce this year's annual revenue by approximately $4,000. The new rates,approved by the Board in the May Budget Workshop, represent an overall increase of 5.4%in water rates and 5.8%in sewer rates.The individual changes for each of the various rates were identified in the Board Budget Workshop and are now being listed,in detail,on the public hearing notice (see Attachment B). Staff will send the notice to customers in their October or November bills.In addition,owners that are not occupants will be sent the same notice separately,to notify them as required by Prop 218.The minimum time for the notice is 45 days prior to the hearing date.Holding the hearing at the January Board meeting fulfills that requirement. ~~ Meeting the bond markets expectation for this hearing will have a positive impact on the District's ability to obtain low cost financing.The cost of the notice is approximately $7,000 The three day delay in the rate implementation will cost the District approximately $4,000. STRATEGIC OUTLOOK: Through well-established financial policies and wise management of funds,the District will continue to guarantee fiscal responsibility to its ratepayers and the community at large. LEGAL IMPACT: None. Attachments: A)Committee Action Form B)Public Hearing Notice ATTACHMENT A Informational Item on a Public Hear SUBJECTIPROJECT:218 COMMITTEE ACTION: Under Proposition The Finance and Administration Committee reviewed this item at a meeting held on October 20,2006.The following comments were made: •The District will be issuing debt this fiscal year and because the bond market sets a higher bar in its efforts to protect the interest of investors,the District's Financial Advisor and the District's General Counsel have suggested that the District hold a public hearing in compliance with Proposition 218 at the January 3,2007 board meeting.This will be followed by the reapproval of the rate increases adopted at the May 30,2006 board meeting. •As property owners must receive notice 45 days in advance of the public hearing,notices are scheduled to be mailed with upcoming District water bills (October and November).Owners who do not reside at their properties will receive the notices via a separate mailing.Both sewer and water customers will receive the notices.The notice will be posted to the District's website. •In the future,notices will be customized so that property owners only receive information on the rate changes that affect them specifically.The current notice includes all rates for all customer classes. •It was indicated that to more fully comply with Proposition 218,the rate changes will not be implemented until after the public hearing and the board's reaffirmation of the rate increases.This will delay the planned implementation date by 3 days. •The committee discussed how future increases may be handled.The budget would continue to be presented for approval in May allowing the District to move Y:\Board\CurBdPkg\FINANCE\CommMtgPublicHearRatesl10106.doc forward with an approved budget.Fo~lowing the budget approval,which would include a review of the proposed rate changes,the customers would be notified of the proposed rate changes and the pending public hearing. The hearing would occur in the early part of the fiscal year,followed by the rate approval,and then followed by rate implementation on the first day of January. •Staff noted that the District is likely to have some public attendance at the hearing. Upon completion of the discussion,the Committee supported staff's recommendation and forwarding to the Board of Directors as an informational /action item. ATTACHMENT B Please be advised there will be a Public Hearing regarding proposed water and sewer rates: Wednesday,January 3,2007 3:30 p.m.in the BoardMeeting Room 2554 Sweetwater Springs Blvd. SpringValley,CA 91978 Purpose and Summary ofRates:The purpose of the new rate structure is to make it possible for the Otay Water District to maintain the level ofservice to its customers and a balanced budget.The new rates were determined after performing a detailed six-year analysis of all costs and revenues.This analysis shows a significant portion ofthe required rate increases are directly related to higher costs for energy and water supply.The proposed rate increases are set forth in the enclosed tables. Pursuant to currently applicable law,owners ofrecord may respond to proposed rate increases.Ifyou desire to object to the proposed rate increases,you may file a written protest with the Secretaryofthe Otay Water District at or prior to the time and date set for the public hearing.Under applicable law, protests must be received in writing prior to the close ofthe public hearing to be considered.A valid protest must contain a description ofthe real property sufficient to identify the parcel you ownwithin the boundaries of the District (address and or assessor parcel number),the owner(s)name(s),and signature ofthe owner(s).Ifthe current owner is not shown on the last equalized assessment roll of the County ofSan Diego,written evidence must be submitted thatthe person signingthe protestis the owner(s).Protests can be mailed or physically delivered to:Board Secretary,OtayWater District,at the address above.DO NOT SEND PROTESTS VIA EMAIL. If a majority of the affected property owners file written protests,the proposed water or sewer rate charges will not be implemented.Ifyou have questions regarding this notice,please visit our Web site atwww.otaywater.gov or speakwith a Customer Representative at (619)670-2227 between 8:00 a.m. and 5:00 p.m.Monday through Friday. Este informe contiene informacion muy importante sobre su tarija de agua.Porfavor llame servicio al cliente (619-670-2227)se tiene preguntas. Customer Class:DomesticService MWD&MWD& System System CWAFixed CWAFixed Charge Charge Charge Charge Meter (Through (Proposed (Through (Proposed Size 12-31-06)1-1-07)12-31-06)1-1-07) 3/4'10.25 11.30 2.85 355 1"1650 18.15 455 5.65 1-1/2"3250 35.75 855 10.65 2:'54.20 58.60 14.80 18.45 CustomerClasses:MultiResidential,Business,Combined DomesticlAgriculture,Publicly-owned,CommercialAgricultural, NonAgricultural Irrigation,Reclaimed,Irrigation using Non- potable and Reclaimed Improvement District Additional Water Charges Rate per Rate per H.C.F.H.C.F. Service (Throngh (Proposed Area 12-31-06)1-1-07) ID3 0.14 0.15 IDlO 0.22 0.23 CustomerClass:DomesticService Number of Rate per Rateper H.C.F.H.C.F. H.C.F (Through (Proposed Furnished 12-31-06)1-1-07) *1-5 1.05 1.08 6-10 1.73 1.78 11-35 1.88 1.94 CustomerClass:Multi Residential and Residential Attached MWD&MWD& System System CWAFixed CWAFixed Meter Charge Charge Charge'Charge* (Through (Proposed (Through (Proposed Size 12-31-06)1-1-07)12-31-06)1-1-07) Over 36 2.75 *Applies if10 units orle.ss used 2.83 3/4'20.00 22.00 2.85 355 1"30.80 33.90 455 5.65 1-1/2"43.30 47.65 855 10.65 2"54.20 59.60 14.80 18.45 3"87.20 95.90 27.35 34.05 4"99.80 109.80 46.75 58.20 6"19950 219.45 8550 106.45 10"380.80 418.90 222.30 276.75 *Not charged to Non Agricultural Irrigation and Reclaimed Number of Rateper Rateper H.C.F.H.C.F. H.C.F (Through (Proposed Furnished 12-31-06)1-1-07) 0-4 1.73 1.78 Over4-15 1.88 1.94 Over 15 2.75 2.83 Customer Classes:Business,Combined DomesticlAgriculture,PubliclyOwned, Commercial,Agricultural,Non Agricnltural Irrigation,Special Agreement CustomerClass:Reclaimed,Irrigation using Nonpotable and Reclaimed Fire ServiceSystem Charges -From$21.20 to $23.30 Customer Class:MultiResidential MultipleUnitCharge per meter nom$3.21 to $353 Customerspayingtwo times the water rate (TankTrucks,Temporary Construction Meters andservice ontside the OtayWaterDistrict or an ImprovementDistrict)are impacted by the changes in their base rates. SewerCharge per ASU -From $30.90 to $32.70 ASU -Assigned Service Unit Rate per H.c.F.(Through 12-31-06) 1.85 Rate per HC.F.(Through 12-31-06) 1.57 Rate per H.C.F.(Proposed 1-1-07) 1.91 Rateper H.C.F.(Proposed 1-1-07) 1.65 STAFF REPORT AGENDA ITEM 8a TYPE MEETING:Regular Board Meeting SUBMITTED BY:Mark Watton, General Manager MEETING DATE: W.O./G.F.NO: November 1,2006 DIV.NO. SUBJECT:Board of Directors 2006 and 2007 Calendar of Meetings GENERAL MANAGER'S RECOMMENDATION: At the request of the Board,the attached Board of Director's meeting calendar for 2006 and 2007 is being presented for discussion. PURPOSE: This staff report is being presented to provide the Board the opportunity to review the 2006 and 2007 Board of Director's meeting calendars and amend the schedules as needed. COMMITTEE ACTION: N/A ANALYSIS: The Board requested that this item be presented at each meeting so they may have an opportunity to review the Board meeting calendar schedule and amend it as needed. STRATEGIC GOAL: N/A FISCAL IMPACT: None. LEGAL IMPACT: None. Attachments:Calendar of Meetings for 2006 and 2007 G:IUserDatalDistSeclWINWORDISTAFRPTSIBoard Meeting Calendar8-3-05.doe Regular Board Meetings: January 4,2006 February 1,2006 March 13,2006 April 5,2006 May 3,2006 June 7,2006 July 5,2006 August 2,2006 September 6,2006 October 4,2006 November 1,2006 December 6,2006 Board Workshops: Board of Directors,Workshops and Committee Meetings 2006 Special Board or Committee Meetings (3 rd Wednesday ofEach Month or as Noted) January 18,2006 February 15,2006 March 15,2006 April 19,2006 May 17,2006 June 21,2006 July 19,2006 August 16,2006 September 20,2006 October 18,2006 November 15,2006 December 20,2006 Tuesday,May 30,2006,Budget Workshop Monday,August 7,2006,Integrated Resources Plan Workshop Monday,September 25,2006,Board Retreat Workshop Committee Meetings: CWA/Water Resources and Security Committee (Tuesday before the CWA board meeting): Water Resource and Security Committee Chair Gary Croucher Mark Watton,CWA Board Representative January 24,2006 February 21,2006 March 21,2006 (Canceled) April 25,2006 May 23,2006 June 20,2006 July 25,2006 August 22,2006 September 26,2006 October 24,2006 November 28,2006 December -No meeting G:\UserData\DistSec\WINWORD\STAFRPTS\Baard Meeting Calendar Attach A for 2006 11-1-06.dac Page 1 of 1 Board ofDirectors,Workshops and Committee Meetings 2007 Regular Board Meetings: January 3,2007 Febmary 7,2007 March 7,2007 April 4,2007 May 2,2007 June 6,2007 July 4,2007 (4th of July Holiday) August 1,2007 September 5,2007 October 3,2007 November 7,2007 December 5,2007 Board Workshops: Budget Workshop,TBD Integrated Resources Plan Workshop,TBD Board Retreat Workshop,TBD Special Board or Committee Meetings (3 rd Wednesday of Each Month or as Noted) January 17,2007 Febmary 21,2007 March 21,2007 April 18,2007 May 16,2007 June 20,2007 July 18,2007 August 15,2007 September 19,2007 October 17,2007 November 21,2007 December 19,2007 Committee Meetings: CWA/Water Resources andSecurity Committee (Tuesday before the CWA board meeting): Water Resource and Security Committee Chair Gary Croucher Mark Watton,CWA Board Representative January 23,2007 Febmary 20,2007 March 20,2007 April 24,2007 May 22,2007 June 26,2007 July 24,2007 August 21,2007 September 25,2007 October 23,2007 November 13,2007 December -No meeting G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar Attach A for 2007 11-1-06.doc Page 1 of 1 AGENDA ITEM 9 STAFF REPORT MEETING DATE:November 1,2006TYPEMEETING:Regular Board Meeting SUBMITTED BY:Mark Watton, General Manager W.O.lG.F.NO:N/A DIV.NO.N/A SUBJECT:General Manager's Report GENERAL MANAGER: •Update on Reservoir, the 30-inch Recycled Water and 680-1 Pump Station Projects: Pipeline,450-1 ~Ortiz Construction pipeline.Testing are being pursued. has completely installed the and installation of appurtenances Final paving is underway. ~The reservoir floor and shell rings have been welded and the roof is complete. ~The walls of the pump station are complete and the roof is under construction.Paving around the reservoir is underway. •The General Manager has approved a waiver request from The Environmental Trust,Inc.for payment of $3,657.01 in deferred availability fees and interest.The Environmental Trust,Inc.had entered into an Availability Deferral Agreement with the District in 2003 which waives the fees for water availability for the period of the agreement as property referenced in the agreement were designated as open space and did not utilize water infrastructure.The Environmental Trust,Inc.indicated that they wished to sell one of the properties (APN#585-091-05)encumbered by the 2003 agreement to the United states Department of the Interior,Fish and Wildlife Service,and has requested that the District agree to terminate the agreement with reference to this specific property (APN#585-091-05)and waive any accrued availability fees and interest that would be due by terminating the agreement prior to its expiration date.The Department of the Interior has indicated that the property will become part of the San Diego National Wildlife Refuge and would be managed solely for this purpose and they would not require water services to the parcel.Because the land will continue to be managed as open space,the General Manager has approved the waiver request by The Environmental Trust,Inc. ADMINISTRATIVE SERVICES AND FINANCE: Administrative Services: •Two new hires started employment in the month of October: Customer Service Rep.I and a Sr.Utility Worker/Equipment Operator. •In preparation for upcoming Negotiations,Staff and Dan Cassidy met with the Employee Association and then met with the Ad-Hoc Committee on October 6,2006,to discuss the process of the upcoming Negotiations and Compensation Study.Doug Johnson of Johnson and Associates was' present to discuss the process for the Compensation Study. •The following table summarizes consultant services retained during the month of August,2006,that are within staff signatory authority: Contractor/ Date Action Amount Consultant Project 08/03/06 P.O.$24,000 Dan Cassidy of Liebert Legal representation Cassidy &Whitmore during negotiations 08/30/06 P.O.$32,600 Johnson &Associates Compensation Study •The District is planning FEMA training for IS 800 for District Emergency Response Personnel.This class will be targeted for those responders who will be reporting to the Emergency Operations Center as part of the EOC team. The District has provided FEMA training for IS 100,IS 200,and IS 800 courses.This will complete much of the major training effort that has been mandated by the Federal Government.More training will be forthcoming as required and/or necessary.This course will be provided at no cost to the District due to the cooperation between the City of Chula Vista Emergency Managers and Otay. •On December 12th the District will be hosting the Water Utilities Safety Management Association monthly meeting. This meeting will include safety personnel and other interested managers throughout Southern California and 2 will be discussing topics and sharing information and ideas to assist in the safety efforts of all agencies. •Cash for Plants Program:The District received a favorable write-up regarding its Cash for Plants turfgrass replacement program in the Homescape section of the Union-Tribune on October 14.In addition,the Jamacha Park HOA completed their project this month, replacing approximately 6,500 square feet of turfgrass with water-wise plants. •Outreach events:Otay staff worked the October 21st California Friendly Gardening Festival held at the Water Conservation Garden,which the District promoted through bill inserts and on its webpage.The event attracted approximately 1,500 people.In addition,staff taught a homeowner's class on irrigation design on October 17th at the Garden.Six homeowners attended the class. •School Program Activity:Staff conducted four school tours at the Water Conservation Garden this month, involving 204 students and 26 adults from Tiffani,Vista Grande and Avocado Elementary Schools.In addition, staff has delivered the water cycle kit to two schools this month,Tiffani and Rohr Elementary Schools (Chula Vista),and the Watershed Kit to Avocado Elementary (Cajon Valley).These kits were used by twelve 2nd and 3rd grade classes.To date,we have received three requests for the Splash Lab and one mini-grant request for a school garden.Another mailing promoting the Splash Lab Garden Tours and other programs were mailed out at the end of October. •The District was presented with a certificate of achievement by the California Highway Patrol for six consecutive years of Satisfactory Fleet Safety Inspections relating to how the District maintains a safe fleet of commercial vehicles. •In the month of October there were III purchase orders issued for a total of $2,504,917.88. Information Technology and Strategic Planning: •The build-out of the District's computer data center project is proceeding on schedule.Electrical work is complete and air conditioning work is nearly complete; the UPS uninterruptible power supply has been installed. 3 We will be employing short-term labor to assist in the migration of data to our new configuration. •The District's IVR system continues to mature.Staff is adding an additional capability to the system that will allow us to automatically callout to customers when we need to alert them of a planned disruption in service. The capability could also be used in case of an emergency if we needed to contact large numbers of customers quickly.The system uses the customer's phone number that we store in a customer information system. •The management reporting capabilities of our software continue to improve.In conjunction with Finance,we offer financial drill-down reports for variance analysis that are easy to use.Finance is conducting additional manager training.We are also offering additional reporting for capital projects that should allow project managers more control over their costs. •The deployment of the field mobile computers is progressing according to plan.Staff is training field operations staff on how to use the new devices. Approximately 40 employees in Operations have been trained.We have deployed 6 units.Current dispersal of units is temporarily on hold while a network configuration issue is resolved.In the next two weeks, we anticipate an additional 20 units will be distributed. •Senior staff has one final meeting to provide enhancements to the FY 2007 Strategic Plan.Changes in FY 2007 include integration of Development Services and Engineering,enhanced performance measures,and greater alignment with the Qualserve Benchmarking study. •Otay continues to promote its achievements in professional circles.Geoff Stevens presented a paper at the Business Process Innovation Summit Conference sponsored by Perot Systems on October 17th at the Hotel Del Coronado.The topic was Otay's Strategic Plan and use of the "Balanced Scorecard".In addition,Theresa Nakatani and Geoff Stevens each made presentations at the GBA Users'Conference held Oct 5-9th in San Diego. Theresa discussed the use of GBA work orders for valve inspection and Geoff presented Otay's approach to enterprise system integration. 4 •The following table summarizes change order and consultant services that were issued during the month of October,2006,that are within staff signatory authority: Contractor/ Date Action Amount Consultant Project Additional 10/27/06 C.O.$6,000 Fandel Enterprises implementation support for IVR,Emergency 911 and outbound dialing. Telecommunications 10/27/06 P.O.$14,000 Fandel Enterprises consulting support for FY2007. FINANCE; •OPEB Liability -Staff will be meeting with the actuary on November 2,2006 to review the preliminary actuarial results of the bPEB liability.This information will need to be disclosed in future financial statements based on the new accounting requirements,GASB 45.Staff plans to review this information with the Finance & Administration Committee in November. •Financial Statement Audit -The auditors have completed their field work at the District.The CAFR has been prepared and will be presented at the November Board meeting.The audit was a "Clean"audit with no management letter comments. •Bond Sale -The financial advisor was selected and staff is going through the selection process for the Bond and Disclosure Counsels which will be presented to committee in November and the Board in December.The insurance company and the underwriters will be selected at or near the time of the Bond Sale which is anticipated to be in March 2007. •Financing Plan -The financial advisor will be working with staff to develop a Financial Plan.This is in conjunction with the bond sale efforts.The timing and structure of the future bond sales will be reviewed as well as the potential for restructuring any existing debt.This will insure compliance with the District's Debt Policy and help to minimize the overall cost of financing District infrastructure.While staff does not anticipate any changes for existing debt,this is a valuable process to validate the design of the overall debt portfolio. 5 •Budget Policy -Staff is currently reviewing numerous budget policies and looking to incorporate those "Best Practices"that best fit the District's preferred form of operations.There will be numerous meetings to review the policy with staff prior to presentation to the Board. Staff plans to present the proposed policy to the Finance and Administration Committee in early 2007. •Debt Policy -The Debt Policy is being revised and will be submitted to GFOA for "Certification".The policy will then be brought to the December Finance and Administration Committee for review.The proposed changes will add many of the existing practices to the policy making it more robust and adding transparency to the District's financial matters. •The District's customers have had the option to pay their water bill at the Postal Annex located in the Terra Nova shopping center on E.H Street in Chula Vista.This option to pay at this South Bay location was available by the Postal Annex for a fee and has been available since March of 1996.For the past four years,that charge has remained at $0.50.Starting January 1,2007 the Postal Annex is going to increase their fee to $1.00 per transaction.Approximately 900 customers use this service every month.Staff believes that this is still a reasonable fee and believes that the cost increase is appropriate due to the Postal Annex's increased banking fees.Customers using this service will be notified in the next two months of the fee increase. The financial reporting for September 2006 is as follows: •For the two months ending September 30,2006,there are total revenues of $17,172,414 and total expenses of $16,138,017.The revenues exceeded expenses by $1,034,397. The financial reporting for investments for September 30, 2006 is as follows: •The market value of the Portfolio Master Summary and the Investment Portfolio Details as of September 30, 2006 total $71,272,478.60 with an average yield to maturity of 4.760%.The total earnings year-to-date are $818,491.24.The effective duration is .315 of a year. 6 ENGINEERING AND WATER OPERATIONS: Engineering: •Staff received 9 new improvement plans from developers for potable/recycled plan checks. •San Diego Regional Energy Office sponsored a one day conference on solar energy.One staff member from the engineering department attended this conference. •On October 11,2006,the Sweetwater Authority Board approved the consultant selection for the Membrane BioReacter (MBR)Feasibility Study.Sweetwater Authority staff will proceed with contract negotiations with RMC Water and Environmental. •In order to educate and publicize the use and benefits of recycled water,staff requested proposals from four public relations firms.Marston &Marston has been selected to develop the recycled water brochures and it is expected that they would be completed by March 2007.The brochures will be distributed at the recycled pipeline dedication event and mailed to stakeholders,landscape contractors and will be available at community events,the Development Services counter and the City of Chula Vista Planning Department. •The 1485-1 Pump Station Project issued a P.O.on September 28,2006 for the Heating,Ventilation,&Air Conditioning (HVAC)design of the new station to HVAC Engineering,Inc.Construction is scheduled to begin in September 2007. •The East County Regional Treated Water Improvement Program (ECRTWIP)Agreement requires an agreement between the San Diego County Water Authority (SDCWA)and Otay Water District (Otay)for Otay Flow Control Facility (FCF)No.14 capacity increase to 16 MGD.The ECRTWIP Agreement established cost sharing at 50%each of actual costs.The Otay FCF No.14 Agreement has been drafted,reviewed,and negotiations on final terms with SDCWA are complete.The Otay FCF No.14 Agreement will be before the Board in November 2006.The Otay share of the facility modifications has been estimated by SDCWA at $0.62 million. 7 •The required disbursement documentation for the first progress payment related to the State Water Resources Control Board (SWRCB)$4.0 million Proposition 50 grant was sent to the SWRCB.The first disbursement check has been received in the amount of $2,462,576.00.Upon completion of the three recycled water projects that link the South Bay Water Reclamation Plant supply to the Otay Water District recycled water system,a final disbursement request for the total of $4.0 million grant can be made.The final grant disbursement request is expected to be sometime after March 2007. •Otay has prepared and sent to the City of San Diego (City)the required United States Bureau of Reclamation (USBR)documentation under the Title XVI program.The City subsequently invoiced the USBR to receive the current fiscal year Otay Title XVI budget amount of $1,200,000.The USBR has completed processing the disbursement request and the check was mailed to the City.The City has forwarded the check and Otay has received the $1,200,000 check (Attachment A). •The fis~al year 2007 Capital Improvement Program information has been uploaded into the Otay Water Inet system. •24 meters were sold as of October 19,2006,generating $451,779 in revenue.Total meters sold for FY06-07 were 323 to date,which generated $3,923,531 for the District. •The Construction Division received 3 new projects to be constructed by developers and performed 2 pre- construction meetings.In addition,4 projects were completed and no projects were released from warranty. •Approximately 5,200 linear feet of both CIP and developer project pipelines were installed since July 2006.The Construction Division performed quality assurance for these pipelines. •231 underground facilities were located,8 hydrost~tic pressure tests,17 wet taps and tie-ins,55 meter set inspections,and 3 project walk-throughs were performed during the month. 8 •The following table summarizes purchase and change orders issued from September 22 through October 12, 2006,that were within staff signatory authority: Contractor/ Date Action Amount Consultant Project 9/22/06 #2 $43,552.62 Ortiz Corporation,30-Inch Recycled WaterC.O.Inc.Pipeline Project 9/28/06 704892 $12,300.00 Engineering,1485-1 Pump StationP.O.HVAC Inc.Replacement (CIP P2172 ) 10/4/06 P.O.704902 $6,200.00 Otay River Constructors SR125 W-15 ACP Disposal SR125 Agreement #26325 10/05/06 P.O.704922 $20,000.00 Otay River Constructors -04E W.O.09T Sweetwater Road SR125 Agreement #26325 10/5/06 704921 $120,000.00 Otay River -04A W.O.23P.O.Constructors Olympic Parkway Board approved 7/21/04 Utility Agreement 10/10/06 P.O.704926 $62,197.00 Caltrans Jf31755,Airway and Harvest Bond Board approved 7/5/06 Public Relations and 10/12/06 704956 $6,500.00 Graphic Design ServicesP.O.Marston &Marston,Inc.for the Recycled Water Program Brochures Water Operations: •Water purchased for the month of September was 4,282.3 acre-feet.Beginning FY 06/07 to date,July 1,2006 to September 30,2006 there has been 13,764.5 acre-feet of water purchased.This is a 2 percent increase from the same period last year,July 1,2005 to September 30,2005. •The AMR ch0nge-out program is progressing.The District's contractor,Underground Utility,Inc. (UUI),has replaced 3,705 RAMAR/Badger units as of September 30,2006,leaving 3,106 RAMAR units still in use. •There were 89 new Automated Meter Reading (AMR)meters installed,239 meters were replaced with new AMR meters and 4 meters were retrofitted to AMR meters for the month of September. Total number of potable water accounts is 47,287. 9 •Recycled water consumption for the month of September is as follows' Total flow was 543.4 acre-feet or 177,086,008 gallons and the average daily flow was 5,902,867 gallons per day. Total number of recycled water accounts is 547. •Wastewater flows for the month of September were as follows: Total basin flow,gallons per day:2,207,000. Total Otay flow,gallons per day:1,474,000. Flow Processed at the Ralph W.Chapman Water Recycling Facility,gallons per day 1,282,000. Flow to Metro from Otay Water District,gallons per day:192,000. Total number of sewer connections is 6,054. G:\UserOata\OistSec\WINWORO\STAFRPTS\GM Report 11-1-06 doc 10 AGENDA ITEM 9 Exhibit A OTAY WATER DISTRICT COMPARATIVE BUDGET SUMMARY FOR THREE MONTHS ENDED SEPTEMBER 30,2006 Annual YTD YTD YTD Budget Actual Budget Variance Var% REVENUE: Water Sales $29,866,000 $9,688,817 $9,598,100 $90,717 0.9% Energy Charges 1,853,000 601,512 598,800 2,712 0.5% System Charges 8,529,300 2,046,367 2,045,300 1,067 0.1% Penalties 704,500 208,371 204,300 4,071 2.0% MWD &CWA Fixed Charges 2,178,000 478,218 477,800 418 0.1% Total Water Sales 43,130,800 13,023,285 12,924,300 98,985 0.8% Reclamation Sales 4,485,400 1,474,202 1,436,700 37,502 2.6% Sewer Charges 2,568,100 618,068 627,600 (9,532)(1.5%) Meter Fees 278,500 91,070 83,600 7,470 8.9% Capacity Fee Revenues 1,000,200 350,757 250,200 100,557 40.2% Annexation Fees 1,216,900 709,503 365,100 344,403 94.3% Non-Operating Revenues 1,674,100 359,661 354,300 5,361 1.5% Tax Revenues 3,427,400 117,958 101,900 16,058 15.8% Interest 1,005,600 357,010 251,400 105,610 42.0% General Fund Draw Down 283,600 70,900 70,900 0.0% Total Revenue $59,070,600 $17,172,414 $16,466,000 $706,414 4.3% EXPENSES: Water Purchases $22,954,900 $7,452,911 7,393,900 $(59,011)(0.8%) CWA-Infrastructure Access Charge 1,003,900 244,188 244,200 12 0.0% CWA-Customer Service Charge 846,800 203,190 203,100 (90)(0.0%) CWA-Emergency Storage Charge 1,230,600 295,596 295,500 (96)(0.0%) MWD-Capacity Res Charge 514,800 128,796 128,700 (96)(0.1 %) MWD-Readiness to Serve Charge 512,200 128,052 127,900 (152)(0.1%) Subtotal Water Purchases 27,063,200 8,452,733 8,393,300 (59,433)(0.7%) Power Charges 2,677,800 656,993 649,725 (7,268)(1.1 %) Payroll &Related Costs 14,606,300 3,691,458 3,380,285 (311,173)(9.2%) Material &Maintenance 4,623,700 1,114,884 1,106,477 (8,407)(0.8%) Administrative Expenses 5,559,600 1,086,950 1,360,650 273,700 20.1% Replacement Reserve 4,540,000 1,135,000 1,135,000 0.0% Total Expenses $59,070,600 $16,138,017 $16,025,437 $(112,580)(0.7%) Excess Revenue (Expense)$$1,034,397 $440,563 $593,834 F:/MORPT/FS2007-0906 10/23/2006 8:48 AM OTAY Portfolio Management Portfolio Summary September 30,2006 Investments FederalAgency Issues-Callable TreasurySecurities-Coupon Certificates of Deposit -Bank Local AgencyInvestmentFund (LAIF) San DiegoCounty Pool Investments Par Market Book %of Daysto YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv.365 Equiv. 45,000,000.00 44,885,894.62 44,955,385.17 66.76 509 256 4.766 4.832 9,000,000.00 8,963,437.50 8,978,743.24 13.33 351 106 4.460 4.521 79,108.00 79,108.00 79,108.00 0.12 730 478 3.880 3.934 13,227,443.44 13,218,652.51 13,227,443.44 19.64 1 1 4.954 5.023 102,174.10 101,924.95 102,174.10 0.15 1 1 4.212 4.271 67,408,725.54 67,249,017.58 67,342,853.95 100.00%388 186 4.760 4.826 Cash Passbook/Checking (notincluded in yield calculations) Total Cash and Investments Total Earnings Current Year Average Daily Balance Effective Rate of Return 4,023,461.02 71,432,186.56 September 30 Month Ending 266,876.99 69,435,139.18 4.68% 4,023,461.02 71,272,478.60 Fiscal Year To Date 818,491.24 71,866,964.14 4.52% 4,023,461.02 71,366,314.97 388 186 0.022 4.760 0.023 4.826 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 value information provided by Interactive Data Corporation.The investments proVide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures. ~~~h:::'ec Run Dale:1012312006 -12:07 Portfolio OTAY AP PM (PRF_PM1)SymRepI6.41.200 ReportVer.5.00 OTAY Portfolio Management Portfolio Details -Investments September 30,2006 Average Purchase CUSIP Investment #Issuer Balance Date ParValue MarketValue Federal Agency Issues-Callable 3133X8KE1 1988 Federal Home Loan Bank 09/29/2004 3,000,000.00 2,983,125.00 3133XASF5 1991 Federal Home Loan Bank 03/08/2005 3,000,000.00 2,989,687.50 3133XARK5 1992 Federal Home Loan Bank 03/08/2005 3,000,000.00 2,989,687.50 3133XEMS5 1998 Federal Home Loan Bank 02128/2006 3,000,000.00 2,992,500.00 3133XEP45 1999 Federal Home Loan Bank 03/0212006 3,000,000.00 2,994,375.00 3133XETX7 2001 Federal Home Loan Bank 03/14/2006 3,000,000.00 2,995,312.50 3133XF2C9 2002 Federal Home Loan Bank 04/25/2006 3,000,000.00 3,002,812.50 3133XFBX3 2003 Federal Home Loan Bank 05/04/2006 3,000,000.00 2,998,125.00 3133XFS72 2007 Federal Home Loan Bank 06/28/2006 3,000,000.00 3,000,000.00 3133XGCU6 2008 Federal Home Loan Bank 07/28/2006 3,000,000.00 3,000,937.50 3128X4K67 2000 Federal Home Loan Mortgage 03/07/2006 3,000,000.00 2,992,652.89 3128X4DY4 2004 Federal Home Loan Mortgage 05/18/2006 3,000,000.00 2,972,207.79 3128X4CE9 2005 Federal Home Loan Mortgage 05/18/2006 3,000,000.00 2,981,520.08 3128X5CCO 2006 Federal Home Loan Mortgage 06/01/2006 3,000,000.00 2,999,513.86 31359MG31 1997 Federal National Mortage Assoc 02124/2006 3,000,000.00 2,993,437.50 Subtotal and Average 48,352,098.93 45,000,000.00 44,885,894.62 Treasury Securities -Coupon 912828DJ6 1993 US TREASURY 01/26/2006 3,000,000.00 2,981,250.00 912828DOO 1994 US TREASURY 01/26/2006 3,000,000.00 2,981,250.00 912827Z62 1995 US TREASURY 0210212006 3,000,000.00 3,000,937.50 Subtotal and Average 8,978,534.16 9,000,000.00 8,963,437.50 Certificates of Deposit -Bank 2050003183R 1996 California Bank &Trust 01/2212006 79,108.00 79,108.00 Subtotal and Average 79,108.00 79,108.00 79,108.00 Local Agency Investment Fund (LAIF) LAIF 9001 STATE OFCALIFORNIA 07/01/2004 13,227,443.44 13,218,652.51 Subtotal and Average 9,359,11~.11 13,227,443.44 13,218,652.51 San Diego County Pool SD COUNTY POOL 9007 STATE OF CALIFORNIA 07/01/2004 102,174.10 101,924.95 Subtotal and Average 101,023.35 102,174.10 101,924.95 Run Date:10123/2006 -12:07 Page 2 Stated YTM Daysto Maturity Book Value Rate Moody's 360 Maturity Date 3,000,000.00 3.025 2.982 89 12129/2006 3,000,000.00 3.500 3.450 68 12108/2006 3,000,000.00 3.510 3.460 68 12108/2006 3,000,000.00 5.000 4.943 423 11/28/2007 3,000,000.00 5.000 4.932 152 03/0212007 3,000,000.00 5.125 5.055 348 09/14/2007 3,000,000.00 5.250 5.175 367 10/03/2007 3,000,000.00 5.250 5.178 215 05/04/2007 3,000,000.00 5.350 5.277 453 12128/2007 3,000,000.00 5.450 5.375 120 01129/2007 3,000,000.00 5.250 5.178 523 03/07/2008 2,972,856.65 4.000 5.129 285 07113/2007 2,982,528.52 3.625 5.161 137 02115/2007 3,000,000.00 5.340 5.263 269 06/27/2007 3,000,000.00 5.000 4.932 327 08/24/2007 44,955,385.17 4.766 256 2,987,140.54 3.125 4.376 122 01131/2007 2,989,518.14 3.750 4.431 181 03/31/2007 3,002,084.56 6.500 4.571 14 10/15/2006 8,978,743.24 4.460 106 79,108.00 3.880 3.880 478 01/22/2008 79,108.00 3.880 478 13,227,443.44 5.023 4.954 13,227,443.44 4.954 102,174.10 4.271 4.212 102,174.10 4.212 Portfolio OTAY AP PM (PRF_PM2)SymRept 6.41.200 Report Ver.5.00 ,.;_~_,~~~~·"'--'---·.~-:c~·--:,,--,--,--o'"""·~"·",i __'-=~773-;-- OTAY Portfolio Management Portfolio Details -Investments September 30,2006 Page 3 CUSIP Investment#Issuer Average Balance Purchase Date Par Value MarketValue Stated BookValue Rate Moody's YTM Daysto 360 Maturity Total and Average 69,435,139.18 67,408,725.54 67,249,017.58 67,342,853.95 4.760 186 Run Dale:10123/2006 -12:07 Portfolio OTAY AP PM (PRF_PM2)SymRepI6.41.200 OTAY Portfolio Management Portfolio Details -Cash September 30,2006 Average Purchase CUSIP Investment#Issuer Balance Date Par Value Union Bank UNION BANK 9002 STATE OF CALIFORNIA 07/01/2004 13,749.02 PETIYCASH 9003 STATE OF CALIFORNIA 07/01/2004 2,800.00 CALIF BANK &TR 9004 STATE OF CALIFORNIA 07/01/2004 3,937,050.55 PAYROLL 9005 STATE OF CALIFORNIA 07/01/2004 53,672.67 UNION IOC 9008 STATEOF CALIFORNIA 05/01/2006 16,188.78 Average Balance 0.00 Total Cash and Investmentss 69,435,139.18 71,432,186.56 Run Date:1012312006 -12:07 Market Value 13,749.02 2,800.00 3,937,050.55 53,672.67 16,188.78 71,272,478.60 Page 4 Stated YTM Days to BookValue Rate Moody's 360 Maturity 13,749.02 1.150 1.134 2,800.00 0.000 3,937,050.55 0.000 53,672.67 0.000 16,188.78 4.620 4.557 71,366,314.97 4.760 186 Portfolio OTAY AP PM(PRF_PM2)SymRept6.41.200 OTAY Activity Report Sorted By Issuer July 1,2006 -September 30,2006 Ending BalanceCUSIPInvestment#Issuer Percent of Portfolio ParValue..........-_.,,-_.._-_.,-- Beginning Balance Current Rate Transaction Date Purchasesor Deposits .....!,,~~Y~II!~...... Redemptions or Withdrawals Issuer:STATE OF CALIFORNIA Subtotal and Balance Local Agency InvestmentFund (LAIF) LAIF 9001 STATE OF CALIFORNIA San Diego County Pool SO COUNTY POOL 9007 Union Bank UNION BANK CALIF BANK &TR PAYROLL UNIONIOC 9002 9004 9005 9008 STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA STATE OF CALIFORNIA SUbtotal and Balance STATE OF CALIFORNIA Subtotal and Balance IssuerSubtotal 24.293% 1.150 13,780,471.18 13,821,740.44 3,102,211.18 61,244.20 4,773.74 0.00 4.620 4,785,689.73 4,800,193.92 1,033,493.75 21,673,145.83 18,683,178.56 5.023 9,159,923.09 8,500,000.00 12,567,520.35 9,159,923.09 8,500,000.00 4.271 3,082.37 0.00 99,091.73 3,082.37 0.00 13,700,105.83 30,836,151.29 27,183,178.56 4,023,461.02 13,227,443.44 102,174.10 17,353,078.56 Issuer:California Bank &Trust Certificates ofDeposit -Bank SUbtotal and Balance 79,108.00 79,108.00 IssuerSubtotal Issuer:Federal Home Loan Bank 0.111%79,108.00 0.00 0.00 79,108.00 Federal Agency Issues-Callable 3133X5ZG6 1977 3133X6LN4 1980 3133X8KC5 1989 3133XARM1 1990 3133XGCU6 2008 RunDate:10/2312006 -12:07 Federal Home Loan Bank Federal Home Loan Bank - Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank 2.510 07/28/2006 0.00 3,000,000.00 2.650 08/10/2006 0.00 3,000,000.00 3.000 09/28/2006 0.00 3,000,000.00 3.470 09/08/2006 0.00 3,000,000.00 5.450 07/28/2006 3,000,000.00 0.00 Portfolio OTAY AP DA (PRF_DA)SymRept6.41.200 Report Ver.5.00 CUSIP Investment#Issuer Percent ofPortfolio OTAY Activity Report July 1,2006 -September30,2006 ParValue""----,._._.._._"---- Beginning Current Transaction Balance Rate Date Purchasesor Deposits Page 2 ParValue ......_...-..~...._,._._.._----_......_..._.- Redemptions or Ending Withdrawals Balance Subtotal and Balance IssuerSubtotal 41.998% Issuer:Federal Home Loan Mortgage Federal Agency Issues-Callable Subtotaland Balance Issuer Subtotal 16.799% Issuer:Federal National Mortage Assoc Federal Agency Issues-Callable Subtotal and Balance 39,000,000.00 39,000,000.00 12,000,000.00 12,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 0.00 12,000,000.00 12,000,000.00 0.00 30,000,000.00 30,000,000.00 12,000,000.00 12,000,000.00 3,000,000.00 IssuerSubtotal Issuer:US TREASURY Treasury Securities -Coupon Subtotaland Balance 4.200%3,000,000.00 9,000,000.00 0.00 0.00 3,000,000.00 9,000,000.00 Issuer Subtotal 12.599% Total 100.000% Run Date:10/2312006 -12:07 9,000,000.00 76,779,213.83 0.00 33,836,151.29 0.00 39,183,178.56 9,000,000.00 71,432,186.56 Portfolio OTAY AP DA(PRF_DA)SymRept6.41.200 ReportVer.5.00 OTAY Duration Report Sorted by Investment Type -Investment Type Through 09/30/2006 Investment Book Par Market Current YTM Current Maturityl Effective Security10 Investment#Fund Issuer Class Value Value Value Rate 365 Yield Call Date Duration 3133XEP45 1999 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 2,994,375.00 5.000 5.000 5.385 0310212007 0.416 3128X4K67 2000 99 Federal Home Loan Mortgage Fair 3,000,000.00 3,000,000.00 2,992,652.89 5.250 5.250 5.433 03107/2008 1.358 3133XBKE1 1988 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 2,983,125.00 3.025 3.024 4.173 1212912006 0.243 3133XEMS5 1998 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 2,992,500.00 5.000 5.012 5.514c 11/28/2006 0.000 3133XASF5 1991 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 2,989,687.50 3.500 3.498 4.202 12108/2006 0.186 3133XARK5 1992 99 Federal HomeLoan Bank Fair 3,000,000.00 3,000,000.00 2,989,687.50 3.510 3.508 4.212 12/0812006 0.186 3133XFS72 2007 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 3,000,000.00 5.350 5.350 5.350c 1212812006 0.241 3133XGCU6 2008 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 3,000,937.50 5.450 5.450 5.378 01/2912007 0.318 3133XFBX3 2003 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 2,998,125.00 5.250 5.250 5.378c 11/04/2006 0.093 3128X4DY4 2004 99 Federal Home Loan Mortgage Fair 2,972,856.65 3,000,000.00 2,972,207.79 4.000 5.200 5.908c 01113/2007 0.284 312BX5CCO 2006 99 Federal Home Loan Mortgage Fair 3,000,000.00 3,000,000.00 2,999,513.86 5.340 5.336 5.373c 12101/2006 0.167 3128X4CE9 2005 99 Federal Home Loan Mortgage Fair 2,982,528.52 3,000,000.00 2,981,520.08 3.625 5.232 4.887 0211512007 0.375 31359MG31 1997 99 Federal National MortageAssoc Fair 3,000,000.00 3,000,000.00 2,993,437.50 5.000 5.000 5.449c 11/24/2006 0.000 3133XF2C9 2002 99 Federal Home Loan Bank Fair 3,000,000.00 3,000,000.00 3,002,812.50 5.250 5.247 5.058c 10/03/2006 0.005 3133XETX7 2001 99 Federal HomeLoan Bank Fair 3,000,000.00 3,000,000.00 2,995,312.50 5.125 5.125 5.298 09/14/2007 0.916 912828DJ6 1993 99 USTREASURY Fair 2,987,140.54 3,000,000.00 2,981,250.00 3.125 4.437 4.403 01/3112007 0.334 912827Z62 1995 99 US TREASURY Fair 3,002,084.56 3,000,000.00 3,000,937.50 6.500 4.634 6.435 10/15/2006 0.038 912828000 1994 99 USTREASURY Fair 2,989,518.14 3,000,000.00 2,981,250.00 3.750 4.492 5.031 03/3112007 0.495 2050003183R 1996 99 California Bank &Trust Amort 79,108.00 79,108.00 79,108.00 3.880 3.934 3.880 0112212008 1.273t Report Total 54,013,236.41 54,079,108.00 53,928,440.12 5.158 0.315t t =Duration can not be calculated on these investmentsdue to incomplete Market price data. Run Dale:10123/2006 -12:08 -----_._-----~----- Page 1 Portfolio OTAY AP DU (PRF_DU)SymRept 6.41.200 Report Var.5.00 OTAY WATER DISTRICT INVESTMENT PORTFOLIO REVIEW SEPTEMBER 30,2006 INVESTMENT OVERVIEW &MARKET STATUS: During the month ofSeptember,with the high level ofconstruction activity centered around the recycled water reservoir,pump station,and pipeline from the City of San Diego water treatment facility,maturing investment funds ($6 Million)were used primarily to pay current construction invoices.This was off-set by above average water sales receipts due to continued hot summer weather throughout the District's service area,and by the receipt at the end ofthe month of $2.5 Million in grant monies from the State of California,Water Resources Control Board.This grant money is the first installment ofthe District's $4 Million award announced last November,for the above mentioned 3 recycled water projects. The Federal Reserve Board continues to hold the federal funds rate at 5.25%and investment analysts currently believe the Feds will maintain rates at this level through year-end,with rates potentially dropping to 5.0%the first quarter of2007.However,this forecast is uncertain enough that long-term interest rates remain very close to short-term rates,with very little reward for investing in securities beyond 12 -18 months.Based on this assessment,we plan to maintain our current strategy of investing in short-term Federal Agency securities in an attempt to avoid having prevailing interest rates overtake those ofour current investment holdings for any extended period oftime. PORTFOLIO COMPLIANCE:September 30,2006 Investment 8.01:Treasury Securities 8.02:Local Agency Investment Fund (LAIF) 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% 30% 25% 30% 20% 100% 100% OtayLimit 100% $40 Million 100% 15% 15% 15% 15% 100% 50% OtayActual 12.58% $13.2 Million 62.99% 0.11% o o o 0.14% 5.64% 62.99% Otay Water District Investment Portfolio 5.75% 12.58% o Banks (Passbook/Checking/CD)•Pools (LAIF &County) 0 Treasuries 0 Agencies 18.68% Performance Measure F-12 Return on Investment Target:Meet or Exceed 1000/0 of LAIF 6 ...r----------------------------, U)5 -...s::CI) E 4... U) CI)>c 3-c 0 C I..:::s... Q)a: o 3:64- 4.05 4.52 4th Qtr FY06 1st Qtr FY07 --+--- 4.02 4.50 4.52 4.93 ----------j 0.50 0.43 AGENDA ITEM 9 W.O.lG.F.NO: MEETING DATE: STAFF REPORT TYPE MEETING:Regular Board SUBMITTED BY:Sean Prendergast,Principal Accountant APPROVED BY:Joseph Beachem,Chief Financial Officer (Chief) APPROVED BY:German Alvarez,Assistant General Manager (Ass!.GM): SUBJECT:Accounts Payable Demand List PURPOSE: November 1,2006 DIV.NO. Attached is the list of demands for the Board's information. FISCAL IMPACT: SUMMARY CHECKS (2002872-2003292) WIRE TO: LANDESBANK -CERTIFICATES OF PARTICIPATION PLAN HANDLERS -MEDICAL CLAIMS SAN DIEGO COUNTY WATER AUTHORITY -WTR DEL/AUG SAN DIEGO COUNTY WATER AUTHORITY -CAP FEES/SEP UNION BANK -PAYROLL TAXES TOTAL CASH DISBURSEMENTS RECOMMENDED ACTION: That the Board receive the attached list of demands. jb Attachment NET DEMANDS $2,301,070.69 $54,791.48 $132,898.53 $2,717,041.20 $1,421,027.00 $266,925.62 $6,893,754.52 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002963 10/06/06 06416 AMERICAN ARBITRATION 0153589 10/06/06 ARBITRATION SERVICES 2,062.50 2,062.50 2002889 10/04/06 06166 AMERICAN MESSAGING L1109570GJ 10/01/06 PAGER SERVICES 608.52 608.52 2002966 10/11/06 06152 AMERICAN PEST CONTROL 185243 09/15/06 PEST CONTROL 125.00 125.00 2002967 10/11/06 00315 AMERICAN SOCIETY OF 00315 10/04/06 MEMBERSHIP RENEWAL 671.00 671.00 2002968 10/11/06 00107 AMERICAN WATER WORKS 1000328019 09/19106 BOOK 49.50 1000323100 07/26/06 REFERENCE MANUAL 48.00 97.50 2003055 10/18/06 00107 AMERICAN WATER WORKS 10207367 10/02/06 BOOK 89.50 89.50 2002969 10/11/06 02518 AMERICAN WATER WORKS ASSN 1000328083 09/20/06 BOOKLETS 226.00 226.00 2003195 10/25/06 00002 ANSWER INC 015384 09/22106 TELEPHONEANSWERING SERVICES 984.20 984.20 2003056 10/18/06 06475 ANTONIO MELAENDES Ref002368640 10/17/06 UB Refund Cst #0000087016 17.25 17.25 2003057 10/18106 02190 APPLIED INDUSTRIAL 85311501 09/28/06 PNEUMATIC POWER TOOLS 157.85 157.85 2003196 10/25106 02829 APPLIED TECHNOLOGY GROUP INC 177172 09/27/06 ANTENNA,CABLE &CONNECTORS 927.54 927.54 2003197 10/25/06 06269 AOUAMETRIC 00143941N 10/03/06 TOUCHREAD HAND-HELD DEVICE 1,394.36 1,394.36 2003058 10/18/06 03672 AOUACRAFT INC 862 09/22/06 METER MASTER DATA LOGGERS 6,025.00 863 09/22/06 SOFTWARE 2,475.00 8,500.00 2002890 10/04/06 01509 ARC ERGONOMICS 17765 09/08/06 ROLLER MOUSE 601.08 601.08 2003059 10/18/06 06485 AREA K DEVELOPMENT Ref002368650 10/17/06 UB Refund Cst #0000088529 850.00 850.00 2003060 10/18106 06441 ARIEL SEGATTO Ref002368606 10/17/06 UB Refund Cst #0000050723 27.84 27.84 2002891 10/04/06 02651 ART'S TRENCH PLATE &27329 08/20/06 TRENCH SHIELD RENTAL 1,131.46 1,131.46 2002892 10/04/06 03582 ASI STERLING SECURITY 99027 09/14106 AFTER HOURS SECURITY SVCS 2,085.50 2,085.50 2002893 10104/06 05514 ASSOCIATED TOWING 365882 09/13/06 TOWING SERVICES 125.00 125.00 2003198 10/25/06 05514 ASSOCIATED TOWING 367021 10/03/06 TOWING SERVICES 250.00 250.00 2003199 10/25/06 06296 AT&T LONG DISTANCE 8093779951006 10/04/06 LONG DISTANCE 91.02 91.02 2003200 10/25/06 06272 AT&T/MCI T5621135 09/17106 PHONE SERVICE 4,811.06 T5616848 09/16106 PHONE SERVICE 764.36 5,575.42 Page 2 of 24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002970 10/11/06 01709 ATKINSON,MITCHELL E 015354 10105/06 TUITION REIMBURSEMENT 90.00 90.00 2003201 10/25/06 05420 AWBREY COOK MCGILL ARCHITECTS 0543300060930 09/30106 METER SHOP &TREATMENT PLANT BLDG 406.79 406.79 2003061 10/18/06 02570 BEST LIFE &HEALTH INSURANCE 015377 10/17106 VOLUNTARY LIFE INSURANCE 237.15 237.15 2002894 10104/06 04806 BJ'S RENTALS 72699 09/13/06 CONCRETE 110.98 110.98 2003202 10/25/06 04806 BJ'S RENTALS 76622 10/05/06 CONCRETE 127.15 127.15 2003062 10/18/06 03404 BLAIR RASMUSSEN CONSTRUCTION 09/15/06 METER SHOP REMODEL 1,587.60 1,587.60 2003203 10/25/06 03404 BLAIR RASMUSSEN CONSTRUCTION 2 10102/06 METER SHOP REMODEL 22,788.90 22,788.90 2002895 10/04/06 02197 BLUE CROSS OF CALIFORNIA 40460 10101/06 EMPLOYEE ASSISTANCE PROGRAM 596.57 596.57 2003204 10/25/06 00146 BOB STALL CHEVROLET 342252 10/04/06 AUTO REPAIR PARTS 147.92 147.92 2003063 10/18106 06442 BONNIE JONES Ref002368607 10/17/06 UB Refund Cst #0000051307 30.04 30.04 2002896 10/04/06 02342 BOOT WORLD INC 10307141N 09/10/06 SAFETYBOOTS 126.63 126.63 2002971 10/11/06 02342 BOOT WORLD INC 10308381N 09/17/06 SAFETYBOOTS 126.63 126.63 2003205 10/25/06 02342 BOOT WORLD INC 1031140lN 09/30/06 SAFETY BOOTS 126.63 126.63 2002897 10104/06 00559 BOYLE ENGINEERING CORPORATION 6 09/09/06 OTAY RW PLAN CHECK INSPECT SVCS 4,500.48 4,500.48 2002972 10/11/06 00559 BOYLE ENGINEERING CORPORATION 036304 09/20/06 OTAY PLAN CHECK INSPECTION SERVICES 5,620.95 5,620.95 2003206 10/25106 03458 BREITFELDER,LARRY 70130906 10/18/06 REIMB MILEAGE EXPENSE 55.18 70130806 10/19/06 REIMB MILEAGE EXPENSE 13.35 68.53 2003207 10/25106 03679 BRG CONSULTING INC 06090613 09/30106 1296-3 RESERVOIR 8,332.50 8,332.50 2003208 10/25/06 06304 BROADWAY PRINTING 121 10103106 PRINTING SERVICES 508.78 508.78 2003209 10/25/06 01232 BRODING'S BATTERY WAREHOUSE 41635 10/05/06 AUTOMOTIVE BATTERIES 408.16 41159 09/22106 AUTOMOTIVE BATTERIES 116.65 40742 09/12/06 CREDIT MEMO (4.31) 40850 09/14/06 CREDIT MEMO (323.14)197.36 2003064 10/18/06 06453 BUD BROWN TRUCKING Ref002368618 10/17/06 UB Refund Cst#0000072894 697.58 697.58 2002973 10/11106 05328 BY DESIGN 748 09/14/06 BROCHURES 400.00 400.00 Page 3 of24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002974 10/11/06 00223 C W MCGRATH INC 21914 09/20/06 CRUSHED ROCK 622.76 21801 09/12/06 CRUSHED ROCK 310.75 21781 09/11/06 CRUSHED ROCK 174.47 21841 09/14/06 CRUSHED ROCK 64.82 1,172.80 2003065 10/18/06 00223 C W MCGRATH INC 22028 09/27/06 CRUSHED ROCK 408.50 21962 09/22/06 CRUSHED ROCK 107.06 515.56 2003210 10/25/06 00223 C W MCGRATH INC 22113 10103/06 CRUSHED ROCK 786.66 22140 10104106 CRUSHED ROCK 191.70 22164 10105/06 CRUSHED ROCK 107.15 1,085.51 2003066 10/18/06 06420 CALIF DEP'T OF FISH &GAME 015369 09/20106 WETLANDS PERMIT 250.00 250.00 2002872 10104/06 06281 CALIF STATE DISBURSEMENT UNIT Ben2368217 10103/06 PAYROLL DEDUCTION 342.92 342.92 2003035 10/18/06 06281 CALIF STATE DISBURSEMENT UNIT Ben2368568 10/17/06 PAYROLL DEDUCTION 342.92 342.92 2002898 10104106 02920 CALIFORNIA COMMERCIAL 60777 09/12/06 ASPHALT 2,117.29 2,117.29 2002899 10104106 01243 CALIFORNIA NEVADA SECTION 00249941N 09/29/06 WORKSHOPS REGISTRATION 300.00 300.00 2003067 10/18/06 04657 CALIFORNIA WATER ENVIRONMENTAL 015374 10/17/06 WORKSHOP REGISTRATION 170.00 170.00 2002975 10/11/06 01004 CALOLYMPIC SAFETY 005405 09/15/06 BATTERY PACK &CHARGERS 718.20 718.20 2003211 10/25/06 01004 CALOLYMPIC SAFETY 007048 09/21106 FALL PROTECTION PRODUCTS 1,799.51 1,799.51 2003212 10/25106 03684 CANON BUSINESS SOLUTIONS-WEST 3579196 10101/06 COPIER SERVICE 2,313.66 2,313.66 2003068 10/18106 06440 CARLOS OLiMON Ref002368605 10/17/06 UB Refund Cst #0000047931 51.72 51.72 2002976 10/11106 03572 CARLTON,DISANTE &42816 09/30106 LEGAL SERVICES -AUG 2006 5,813.52 42817 09/30106 LEGAL SERVICES -AUG 2006 302.50 6,116.02 2003213 10/25106 02758 CARMEL BUSINESS SYSTEMS INC 6345 10101/06 STORAGE &DESTRUCTION OF DOCUMENTS 202.55 202.55 2003214 10/25106 03491 CASA DE ORO CARWASH 307 10101/06 CAR WASH SERVICES 1,094.98 1,094.98 2003069 10/18/06 06488 CELESTINO ANGELES Ref002368653 10/17/06 UB Refund Cst #0000090014 15.98 15.98 2003070 10/18/06 06469 CELINA GONZALEZ Ref002368634 10/17/06 UB Refund Cst #0000084272 31.37 31.37 2003071 10/18/06 06447 CENTEX HOMES Ref002368612 10/17/06 UB Refund Cst #0000065822 460.25 460.25 Page 4 of 24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003072 10/18/06 06452 CHRISTOPHER RODRIGUEZ Ref002368617 10/17/06 UB Refund Cst #0000072744 27.21 27.21 2003073 10/18/06 02306 CHULAVISTA HILLS ELEMENTARY 015370 10/12/06 SPLASH SCIENCE MOBILE LAB FUNDING 255.00 255.00 2002977 10/11/06 05008 CINGULAR WIRELESS 015350 09/29/06 WIRELESS PHONE SERVICE 10.58 10.58 2002900 10/04/06 00446 CITY OF CHULA VISTA APN5933824000 10/03/06 SECURED PROPERTY TAX 4.34 4.34 2002978 10/11/06 00446 CITY OF CHULA VISTA APN59338240001 10/02/06 SECURED PROPERTY TAXES 37.18 APN59338240003 10/02/06 SECURED PROPERTY TAXES 30.32 APN59338240002 10/02/06 SECURED PROPERTY TAXES 1.30 68.80 2002979 10/11/06 05837 CITY OF SAN DIEGO 608840 10/11/06 POLICE REPORT REQUEST 12.00 12.00 2002901 10/04/06 00234 CITY TREASURER 015325 09/21/06 WATER DELIVERIES 49,613.50 49,613.50 2003215 10/25/06 04119 CLARKSON LAB &SUPPLY INC 31158 09/30/06 BACTERIOLOGICAL ANALYSIS 588.00 31183 09/30/06 BACTERIOLOGICAL ANALYSIS 446.00 31235 09/30/06 BACTERIOLOGICAL ANALYSIS 328.00 31336 09/30/06 BACTERIOLOGICAL ANALYSIS 308.00 31184 09/30/06 BACTERIOLOGICAL ANALYSIS 284.00 31157 09/30/06 BACTERIOLOGICAL ANALYSIS 282.00 31159 09/30/06 BACTERIOLOGICAL ANALYSIS 262.00 31416 09/30/06 BACTERIOLOGICALANALYSIS 238.00 2,736.00 2002902 10/04/06 01666 COMMERCIAL PRINTING CENTRE 41410 09/11/06 DOOR HANGERS 267.38 267.38 2003216 10/25/06 03774 CONSTRUCTION RESIDUE RECYCLING 974156 09/30/06 DUMPING SERVICES 160.00 160.00 2002903 10/04/06 03706 CONSUMERS PIPE &SUPPLY CO S1003428004 09/11/06 PIPES 276.77 S1003428001 09/11/06 PIPES 263.43 S1003428003 09/11/06 PIPES 110.03 S1004360001 09/12/06 WAREHOUSE SUPPLIES 102.79 753.02 2003074 10/18/06 02612 COUNCIL OF WATER UTILITIES 015371 10/16/06 MEETING REGISTRATION 60.00 60.00 2002904 10/04/06 00099 COUNTY OF SAN DIEGO 38210 08/03/06 EXCAVATION PERMITS 321.83 40463 09/05/06 EXCAVATION PERMITS 280.77 602.60 2003075 10/18/06 00433 COUNTY OF SAN DIEGO 217967 10/17/06 APCD SETTLEMENT 6,500.00 6,500.00 2003076 10/18/06 05125 CUDLlP,JAMES 015379 10/17/06 REIMB CONF TRVL EXP 54.26 54.26 2003217 10/25/06 01280 DALEY &HEFT 28172 09/18/06 LEGAL SERVICES 1,623.53 28275 10/11/06 LEGAL SERVICES 472.12 2,095.65 Page 5 of24 -"'-"--~._---_.._---.'._.._--_._-~----_._--,---~--=1\W:;.7,';.·.-.·'"',"%.»0,"'1" OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003077 10/18/06 06429 DANIEL EREZ 2003218 10/25/06 00463 DAPPER TIRE CO 2003078 10/18/06 06430 DARRYN JAMES 2002905 10/04/06 03354 DATAPROSE INC 2003079 10/18/06 03354 DATAPROSE INC 2003219 10/25/06 04550 DATATREE 2003080 10/18/06 06439 DAVID L MALCOLM 2003081 10/18/06 06456 DAVID RODRIGUEZ 2002906 10/04/06 03606 DCSE INC 2003220 10/25/06 00852 DEC CONSULTANTS INC 2003082 10/18/06·06423 DEIRDRE DEVANEY 2002980 10/11/06 03428 DEL MAR OFFICE PRODUCTS 2003083 10/18/06 03428 DEL MAR OFFICE PRODUCTS 2002981 10/11/06 03589 DEPT OF HEALTH SERVICES 2003084 10/18106 03589 DEPT OF HEALTH SERVICES 2003221 10/25/06 00319 DEPT OF HEALTH SERVICES 2002982 10/11/06 03162 DEPT OF PESTICIDE REGULATION 2003085 10/18/06 06482 DIANNA CULVER 2002907 10/04/06 03417 DIRECTV 2003222 10/25/06 03417 DIRECTV 2002908 10/04/06 03704 DME INCORPORATED 2003086 10/18/06 03704 DME INCORPORATED Ref002368594 231123 Ref002368595 36938 37465 90034096 Ref002368604 Ref002368621 1076337625 2 U91986 U092011 Ref002368588 9249300 9145040 24358 015365 3710034 03162 Ref002368647 424509213 433898324 95831 96081 10/17/06 UB Refund Cst #0000016455 07/28/06 TIRES 10/17/06 UB Refund Cst #0000021279 09/11/06 BILLING PRINT SERVICES 10/09/06 BILLING PRINT SERVICES 09/30/06 MAP PURCHASING SERVICE 10/17/06 UB Refund Cst#0000047691 10/17/06 UB Refund Cst#0000073224 08/21/06 FIELD MAPPLET SOFTWARE 09/10/06 PROFESSIONAL GIS SERVICES 09/30/06 2005-2007 CP PROGRAM 09/30/06 2002-2003 CP PROGRAM 10/17/06 UB Refund Cst #0000006620 09/20/06 OFFICE SUPPLIES 08/03106 OFFICE SUPPLIES 09/06/06 CERTIFICATION RENEWAL 10/09106 CERTIFICATION APPLICATION FEE 09/29/06 WATER SYSTEM FEES 10/04/06 L1CENSE/CERT RENEWAL 10/17/06 UB Refund Cst #0000088390 09/09/06 SATELLITE TV SERVICE 10/05/06 SATELLITE TV SERVICE 09/12/06 PARTS 09/25/06 PARTS 23.10 2,569.30 47.07 9,124.82 8,652.25 99.00 73.28 24.64 82,202.50 12,000.00 6,164.31 209.46 109.46 15.07 4.08 130.00 120.00 5,239.21 60.00 45.98 4.99 46.96 657.60 514.88 23.10 2,569.30 47.07 9,124.82 8,652.25 99.00 73.28 24.64 94,202.50 6,373.77 109.46 15.07 4.08 130.00 120.00 5,239.21 60.00 45.98 4.99 46.96 657.60 514.88 Page 6 of 24 _.;-.-~-~,,~,.....,..",'~--._----, OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003223 10/25/06 03704 DME INCORPORATED 96225 10/03/06 EXH RETRO FIT 1,460.78 1,460.78 2003087 10/18/06 06487 DON SALMON Ref002368652 10/17/06 UB Refund Cst#0000089806 181.88 181.88 2003088 10/18/06 06446 DONALD H GREENAWALT Ref002368611 10/17/06 UB Refund Cst#0000064098 18.00 18.00 2002909 10/04/06 00352 DREW FORD C71139 09/14/06 REPAIR SERVICE 269.12 269.12 2002983 10/11/06 01926 EAST COUNTY URGENT CARE 015324 09/19/06 HEALTH EXAMS 43.00 43.00 2003089 10/18/06 01926 EAST COUNTY URGENT CARE 015309 09/22/06 HEALTH EXAMS 17.00 17.00 2003090 10/18/06 06436 EASTLAKE III Ref002368601 10/17/06 UB Refund Cst #0000043680 3,704.02 3,704.02 2003224 10/25106 02447 EDCO DISPOSAL CORPORATION 015334 09/30/06 RECYCLING SERVICES 47.19 47.19 2003091 10/18/06 03261 EDEN SYSTEMS INC 4263 04/07/06 PROFESSIONAL CONSULTING SVCS 4,900.00 INV0093678 06/22106 PROFESSIONAL CONSULTING SVCS 3,900.00 INV0093677 06/22/06 PROFESSIONAL SERVICES 750.00 9,550.00 2003225 10/25106 00230 EDP PRODUCTS INC 804651 09/30/06 CARTRIDGE STORAGE/RETRIEVAL 196.60 196.60 2003092 10/18106 06448 ELIZABETH CACHO Ref002368613 10/17/06 UB Refund Cst #0000068211 65.26 65.26 2003093 10/18/06 01314 EMEDCO CO INC 59976701 09/26/06 SIGNS FOR TREATMENT PLANT 1,643.70 59976700 09/25/06 SIGNS 170.69 1,814.39 2002984 10/11/06 05128 EMPIRE ELECTRICAL SUPPLY 104974001 09/11/06 LIGHT FIXTURES 1,503.50 1,503.50 2003094 10/18/06 06427 ENEDINA MCMINN Ref002368592 10/17/06 UB Refund Cst #0000011596 52.49 52.49 2003226 10/25/06 03046 ENERGY SYSTEMS 72742 10102/06 WATER PUMP/THERMOSTAT/HOSE RADIATOR 589.83 589.83 2003095 10/18/06 06486 EQUITY HOUSE FINANCIAL INC Ref002368651 10/17/06 UB Refund Cst #0000089361 16.78 16.78 2003096 10/18/06 02639 EW TRUCK &EQUIPMENT 173094 09/28/06 REPAIR PARTS 402.30 402.30 2003227 10/25106 02639 EW TRUCK &EQUIPMENT 173378 10/03/06 REPAIR PARTS 40.00 40.00 2002910 10104106 03650 EXPRESS PRINTING INFORMATION 36839 09/01/06 WATER METER TAGS 399.15 399.15 2002911 10/04/06 03683 F &L INDUSTRIAL SOLUTIONS INC 4044 09/11/06 PART 530.96 530.96 2002912 10104106 03546 FERGUSON WATERWORKS 0173200 09/13/06 INVENTORY 7,272.48 01710121 09/13106 WAREHOUSE SUPPLIES 1,917.29 0171835 09/11/06 INVENTORY 902.74 10,092.51 Page 7 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 101412006 TO 1012512006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002985 10111106 03546 FERGUSON WATERWORKS 0171019 09118106 INVENTORY 6,794.72 0171023 09119106 INVENTORY 2,573.80 0174055 09119106 INVENTORY 2,448.94 0164308 09115106 WAREHOUSE SUPPLIES 1,542.36 01720201 09115106 WAREHOUSE SUPPLIES 378.09 13,737.91 2003097 10118106 03546 FERGUSON WATERWORKS 0175493 09127106 INVENTORY 6,716.17 6,716.17 2003228 10125106 03546 FERGUSON WATERWORKS 0172211 10102106 INVENTORY 6,794.72 0176199 10105/06 INVENTORY 3,381.26 01732002 10102/06 INVENTORY 2,609.94 01754931 09/29106 INVENTORY 2,268.91 01621432 10105/06 GATE CAPS 1,237.40 16,292.23 2002986 10/11106 03544 FILEFAX 10016782 09/21/06 FILE FOLDERS 493.67 493.67 2003098 10/18/06 00843 FIRE &ICE HEATING AND 10156 09/26/06 SERVICE REPAIR 177.10 C50332 09/26/06 SERVICE REPAIR 177.00 354.10 2003229 10/25/06 02470 FIRST BANKCARD 015387 10/10106 DISTRICT EXPENSES 439.94 015388 10/10106 DISTRICT EXPENSES 210.57 015381 10/18/06 DISTRICT EXPENSES 121.14 771.65 2003099 10/18/06 04066 FIRST CHOICE SERVICES-SD 268819 08/30106 COFFEE SUPPLIES 218.39 270112 09/28/06 COFFEE SUPPLIES 199.41 269418 09/14/06 COFFEE SUPPLIES 122.54 540.34 2003230 10/25/06 02591 FITNESS TECH INC 3594 10101106 MAINTENANCE FOR FITNESS EQUIPMENT 100.00 100.00 2002987 10/11/06 03109 FOLEY &LARDNER 27094653 09/25/06 LEGAL SERVICES 540.50 540.50 2002988 10/11/06 01327 FRANK &SON PAVING INC 01 09/20106 944-1 &944-2 RESERVOIR SITE 30,781.80 30,781.80 2003231 10/25/06 01327 FRANK &SON PAVING INC 03010 09/29/06 PAVING SERVICES 13,174.60 13,174.60 2002913 10104/06 05626 GAME 7 CONSULTING 1431 09/12/06 CONSULTING SERVICES -IS DEPT 4,248.00 4,248.00 2002989 10/11106 05626 GAME 7 CONSULTING 1433 09/19106 CONSULTING SERVICES -IS DEPT 5,609.25 5,609.25 2003100 10/18106 05626 GAME 7 CONSULTING 1442 10/10106 CONSULTING SERVICES -IS DEPT 5,627.00 5,627.00 2003232 10/25/06 05626 GAME 7 CONSULTING 1439 10103/06 CONSULTING SERVICES -IS DEPT 5,982.00 1445 10/19/06 CONSULTING SERVICES -IS DEPT 5,840.00 11,822.00 2002990 10/11/06 06291 GARCIA CALDERON &RUIZ 1029 09/30106 LEGAL SERVICES -SEP 2006 27,636.83 27,636.83 Page 8 of24 ~-~-~~-~.._--_._,,~_..~.~~~--~';'_:::-'~'~'~---..----;-.---:-- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003101 10/18/06 06443 GEORGE MACGREGOR JR Ref002368608 10/17/06 UB Refund Cst #0000053121 16.25 16.25 2003233 10/25/06 01573 GEOTECHNICS INC 236720 09/30106 1485-1 PUMP STATION 7,810.00 7,810.00 2002914 10/04/06 03537 GHA TECHNOLOGIES INC 391596 09/13/06 COLOR PRINTERS 1,081.35 391073 09/11/06 WIRELESS HEADSET 245.68 1,327.03 2003102 10/18106 03537 GHA TECHNOLOGIES INC 394507 09/28106 FLAT PANEL MONITOR 1,681.77 1,681.77 2003103 10/18/06 06472 GINA LOZANO Ref002368637 10/17/06 UB Refund Cst #0000086427 29.44 29.44 2002915 10104106 00131 GOVERNMENT FINANCE OFFICERS 0052001 10/03106 MEMBERSHIP RENEWALS 545.00 0016854S 08/31/06 SUBSCRIPTION RENEWAL 210.00 755.00 2002991 10/11/06 03289 GRANGER,WILLIAM E 015349 10104/06 REIMBURSE CONF TRVL EXP 146.80 146.80 2002992 10/11/06 03773 GTC SYSTEMS INC 25562 09/20106 COMPUTER CASE 2,379.12 2,379.12 2003234 10/25/06 03773 GTC SYSTEMS INC 25618 09/29/06 TECHNICAL SUPPORT FOR CITRIX 1,349.88 1,349.88 2002916 10104/06 02630 HAAKER EQUIPMENT COMPANY C49674 09/14/06 PART 198.80 198.80 2003104 10/18/06 02630 HAAKER EQUIPMENT COMPANY C49929 09/27/06 PARTS 130.14 130.14 2003105 10/18/06 00174 HACH COMPANY 4872594 09/22106 CHLORINE &AMMONIA ANALYZER 1,829.36 1,829.36 2003235 10/25/06 02629 HANSON AGGREGATES PACIFIC 484725 09/29106 CRUSHED AGGREGATES &ROCK 405.44 405.44 2003106 10/18/06 04217 HATCH &PARENT 410083 09/19/06 LEGISLATIVE ADVOCACY-AUG 2006 3,375.00 410526 10/10106 LEGISLATIVE ADVOCACY -SEP 2006 2,862.50 6,237.50 2003236 10/25/06 05986 HAVSINCORPORATED 5557 09/25/06 LCD MONITOR INSTALLATIONS 5,635.63 5,635.63 2003237 10/25/06 00150 HAWTHORNE MACHINERYCO PS010211491 10102/06 PUMP 664.13 PC010017817 05/11/06 CREDIT MEMO (3.45) PC010017818 05/11106 CREDIT MEMO (3.88) PC010017778 05/02106 CREDIT MEMO (721) PC010017779 05/02106 CREDIT MEMO (721) PC010017767 05/02/06 CREDIT MEMO (10.11) PC010017780 05/02/06 CREDIT MEMO (43.72) PC010017816 05/11/06 CREDIT MEMO (72.42)516.13 2002993 10/11/06 00169 HAWTHORNE POWER SYSTEMS PS100019008 09/20106 DIGITAL ELECTRONIC IGNITION 2,520.51 2,520.51 2003238 10/25106 00169 HAWTHORNE POWER SYSTEMS PS100019774 09/29/06 ELECTRONIC MOTOR CONTROL PANEL 1,946.98 Page 9 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total PS100019303 09/25/06 REPAIR PARTS 997.85 PS100019719 09/29/06 CONTROLANUNCIATOR PANEL 921.72 3,866.55 2002917 10/04/06 04472 HECTOR I MARES-COSSIO 18 09/01/06 CONSULTING SERVICES SEP 2006 3,000.00 3,000.00 2003239 10/25/06 00062 HELIX WATER DISTRICT 174639861006 10/05/06 WATER BILL·RUSSELL SO 31.23 31.23 2003240 10/25/06 02096 HELIX WATER DISTRICT 327452 09/29106 LOAN OF WATER TRUCK 132.75 132;75 2003241 10/25/06 01727 HENDERSON,ELAINE M 1357906 10/23/06 REIMBURSE CONF TRVL EXP 38.00 38.00 2003107 10/18/06 06449 HILDA HERNANDEZ Ref002368614 10/17/06 UB Refund Cst #0000068356 65.35 65.35 2002994 10/11106 05124 HILDING,KIPNIS &KELLY 15577 08/31/06 REF:CL3376 OWD/AIG INS CO 1,103.00 05124 09/30/06 REF:CL3376 OWD/AIG INS CO 249.00 1,352.00 2003242 10/25/06 01109 HOME DEPOT CREDIT SERVICES 3156745 09/15/06 BUILDING MAINT SUPPLIES 282.20 2014323 10/16/06 BUILDING MAINT SUPPLIES 129.11 5163686 10/23/06 BUILDING MAINT SUPPLIES 110.25 2014324 10/16/06 BUILDING MAINT SUPPLIES 48.80 570.36 2002918 10/04/06 04507 HOME DEPOT USA INC 6614472 09/12106 BLDG MAINT SUPPLIES 248.85 248.85 2002919 10/04/06 01088 HYDRO·SCAPE PRODUCTS INC 0463317400 09/11/06 BATTERY CONTROLLER 215.42 215.42 2002995 10/11/06 01088 HYDRO-SCAPE PRODUCTS INC 0463317401 09/11106 IRRIGATION CONTROLLERS 215.42 215.42 2002920 10/04/06 03615 I.M.PAC.GOVERNMENT SERVICES 015332 09/22/06 SEMINAR CANCELLATION FEE 131.25 131.25 2003108 10/18/06 03615 I.M.PAC.GOVERNMENT SERVICES 015378 10/10106 DISTRICT EXPENSES 5,380.49 015373 09/22/06 DISTRICT EXPENSES 11.71 5,392.20 2003243 10/25/06 01649 IDEXX DISTRIBUTION CORP 221966713 09/20/06 LABORATORY SUPPLIES 1,419.79 1,419.79 2002996 10/11/06 04220 INDUSTRIAL SUPPLY DISTRIBUTORS 027832 09/07/06 SCRUB HAND CLEANER 51.00 51.00 2003109 10/18/06 04220 INDUSTRIAL SUPPLY DISTRIBUTORS 027836 09/26106 CLEANING SUPPLIES 92.07 92.07 2002997 10/11/06 04197 INTEGRITYSTAFFING INC 3147 09/18/06 TEMPORARY SERVICES -HR DEPT 1,979.55 1,979.55 2003110 10/18/06 04197 INTEGRITY STAFFING INC 3156 09/25/06 TEMPORARY SERVICES -HR DEPT 1,943.78 3190 10/17/06 TEMPORARY SERVICES·HR DEPT 1,931.85 3,875.63 2003244 10/25/06 04197 INTEGRITY STAFFING INC 3170 10/03/06 TEMPORARY SERVICES -HR DEPT 1,908.00 3207 10/16/06 TEMPORARY SERVICES·HR DEPT 1,908.00 3,816.00 Page 10 of24 ---_._-~_.~._.__..~--- OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003245 10/25/06 02372 INTERIOR PLANT SERVICE INC 22538 09/30106 PLANT SERVICE 181.00 181.00 2002873 10104106 02267 INTERNAL REVENUE SERVICE Ben2368209 10/03/06 PAYROLL DEDUCTION 50.00 50.00 2002874 10/04/06 04077 INTERNAL REVENUE SERVICE Ben2368221 10/03/06 PAYROLL DEDUCTION 64.00 64.00 2003036 10/18/06 02267 INTERNAL REVENUE SERVICE Ben2368560 10/17/06 PAYROLL DEDUCTION 50.00 50.00 2003037 10/18/06 04077 INTERNAL REVENUE SERVICE Ben2368572 10/17106 PAYROLL DEDUCTION 64.00 64.00 2003111 10/18/06 06491 IRE DEVELOPMENT Ref002368656 10/17/06 UB Refund Cst #0000090806 715.76 715.76 2003112 10/18/06 06492 IRE DEVELOPMENT Ref002368657 10/17/06 UB Refund Cst #0000090808 715.76 715.76 2003113 10/18/06 06434 IRMA Y FELICIANO Ref002368599 10/17/06 UB Refund Cst #0000037714 45.95 45.95 2003246 10/25/06 01591 IRON MOUNTAIN RECORDS FK11081 09/30106 RECORDS STORAGE 255.23 FK11080 09/30/06 RECORDS STORAGE 0.61 255.84 2003114 10/18/06 06445 JAMES C BROWN Ref002368610 10/17/06 UB Refund Cst #0000062704 31.04 31.04 2003115 10/18/06 06438 JAMES COX Ref002368603 10/17/06 UB Refund Cst #0000046316 110.46 110.46 2003116 10/18/06 06435 JAMES NORR Ref002368600 10/17/06 UB Refund Cst #0000042347 124.11 124.11 2003117 10/18/06 06460 JAMUL PARTNERS LLC Ref002368625 10/17106 UB Refund Cst#0000079190 758.38 758.38 2003247 10/25/06 03077 JANI KING OF CALIFORNIA INC SD010060436 10101106 JANITORIAL SERVICES 3,905.00 SD010060446 10/01106 OFF-SITE JANITORIALSERVICES 990.00 4,895.00 2003118 10/18106 06463 JENNIFERWESTON Ref002368628 10/17106 UB Refund Cst #0000080790 79.38 79.38 2002998 10/11106 01010 JOBS AVAILABLE INC 620092 09/19/06 JOB POSTING 752.50 752.50 2003119 10/18/06 06483 JOHN PATTERSON Ref002368648 10/17/06 UB Refund Cst #0000088391 92.51 92.51 2003120 10/18106 06461 JOHN VANGORP Ref002368626 10/17/06 UB Refund Cst #0000080225 22.52 22.52 2003248 10/25/06 05527 JOHN'S CRANE RENTAL LLC 13401 10/03106 CRANE RENTAL 500.00 500.00 2003121 10/18/06 06282 JOHNSON &ASSOCIATES LLC 11462 09/22/06 PROFESSIONALSERVICES 6,520.00 6,520.00 2003122 10/18106 06476 JOSEPH TILLER Ref002368641 10/17106 UB Refund Cst #0000087058 84.90 84.90 2003123 10/18/06 06451 JOSIE ALVARAEZ Ref002368616 10/17/06 UB Refund Cst #0000072202 34.02 34.02 Page 11 of24 -",.----.p"&<h,_,_"_,, OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS2002872 THROUGH 2003292 RUN DATES 10/4/2006TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002999 10/11/06 00056 KAMAN INDUSTRIAL TECHNOLOGIES Y421410 09/21/06 GEAR DRIVE REDUCER 829.68 829.68 2003124 10/18/06 06432 KAREN RATLIFF Ref002368597 10/17/06 UB Refund Cst #0000028445 29.94 29.94 2003125 10/18/06 06455 KAVEH KHAST Ref002368620 10/17/06 UB Refund Cst#0000073223 133.08 133.08 2003126 10/18106 01804 KEERAN,TIMOTHY R 015375 10/16/06 REIMB CONF TRAVEL EXP 171.47 171.47 2003000 10/11/06 06267 KELLY PAPER 914598 09/21106 OFFICE SUPPLIES 341.18 341.18 2003249 10/25/06 03661 KIMBALL MIDWEST 844418 06/19/06 CUTOFF WHEELS,BRAKE CLEANER 131.92 131.92 2003250 10/25/06 03673 KISSINGER TRUCKING &EQUIPMENT 0609020 09/30/06 HAULING SERVICES 380.00 380.00 2003001 10/11/06 04996 KNOX ATTORNEY SERVICE INC 199481 09/21/06 COURIER SERVICE 25.00 199483 09/21/06 COURIER SERVICE 25.00 199484 09/21/06 COURIER SERVICE 25.00 75.00 2003127 10/18/06 04996 KNOXATTORNEY SERVICE INC 199627 09/24106 COURIER SERVICE 25.00 199626 09/24106 COURIER SERVICE 25.00 199625 09/24106 COURIER SERVICE 25.00 200728 09/27/06 COURIER SERVICE 25.00 200729 09/27106 COURIER SERVICE 25.00 125.00 2003251 10/25/06 04996 KNOXATTORNEYSERVICE INC 202131 10/03106 COURIER SERVICE 25.00 202129 10/03/06 COURIER SERVICE 25.00 202128 10/03106 COURIER SERVICE 25.00 202127 10/03/06 COURIER SERVICE 25.00 202130 10/03/06 COURIER SERVICE 25.00 125.00 2002921 10/04/06 06262 KODUKULA,SHAMALA 16830906 09/29/06 REIMBURSE CONF TRVL EXP 165.92 165.92 2003002 10/11/06 03771 KREINBRING,DALE B 015364 10/10/06 TUITION REIMBURSEMENT 94.00 94.00 2003128 10/18106 06426 KURT BUSKA Ref002368591 10/17/06 UB Refund Cst#0000009364 31.80 31.80 2003003 10/11/06 01859 LA PRENSASAN DIEGO 20677 09/18/06 JOB POSTING 186.39 186.39 2003252 10/25/06 01859 LA PRENSA SAN DIEGO 20806 10/03/06 JOB POSTING 138.00 138.00 2002922 10/04/06 04829 LARRY JACKMAN 013897 06/30/05 WORKORDER REFUND D0272-XX9626 2,053.20 2,053.20 2003129 10/18106 06490 LEONEL GURROLA Ref002368655 10/17/06 UB Refund Cst #0000090598 584.44 584.44 2003253·10/25/06 06273 LIEBERT CASSIDY WHITMORE 70817 09/30/06 LABOR RELATIONS CONSULTING SERVICES 2,000.00 2,000.00 Page 12 of24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003130 10/18/06 06466 LISA THOMAS Ref002368631 10/17/06 UB Refund Cst#0000083130 59.76 59.76 2003004 10/11/06 03784 L1VESCAN SAN DIEGO 06100539 09/16/06 FINGERPRINTING SERVICES 20.00 20.00 2003254 10/25/06 03784 L1VESCAN SAN DIEGO 06100571 09/29/06 FINGERPRINTING SERVICES 60.00 60.00 2003255 10/25/06 05220 LOGICALIS INTEGRATION SOLUTION S611792 09/30/06 DATA CENTER UPGRADE 46,257.50 46,257.50 2003131 10/18/06 06431 LUCAR TRUCKING Ref002368596 10/17/06 UB Refund Cst #0000022497 17.83 17.83 2003132 10/18/06 06471 LUCINA MEDINA Ref002368636 10/17/06 UB Refund Cst #0000084392 29.97 29.97 2002923 10104/06 06413 MAINTENANCE SUPERINTENDANT 015339 10102/06 MEMBERSHIP RENEWAL 70.00 70.00 2003133 10/18/06 00628 MANHATTAN NAT'L LIFE INS CO 015376 10/17106 VOLUNTARY LIFE INSURANCE 505.20 505.20 2003134 10/18/06 06465 MARIA JARQUE Ref002368630 10/17/06 UB Refund Cst #0000082468 20.72 20.72 2003135 10/18106 06480 MARJORIE MCNAMARA Ref002368645 10/17106 UB Refund Cst#0000087917 38.93 38.93 2003136 10/18/06 02902 MARSTON &MARSTON INC 1003 09/30106 PUBLIC RELATIONS SERVICES 2,995.00 2,995.00 2002924 10104/06 05329 MASTER METER INC 01125441N 08/22/06 INVENTORY 47,679.12 01125451N 08/22/06 INVENTORY 27,243.51 01122911N 08/16/06 INVENTORY 11,337.46 0114035CM 09/27/06 CREDIT MEMO (444.47) 0114036CM 09/27/06 CREDIT MEMO (1,068.34) 0114037CM 09/27/06 CREDIT MEMO (1,868.90)82,878.38 2003137 10/18/06 05329 MASTER METER INC 01139891N 09/26/06 METERS 10,984.52 10,984.52 2002925 10104/06 01183 MCMASTER-CARRSUPPLYCO 50506099 09/13/06 PARTS 535.19 50378329 09/11/06 WAREHOUSE SUPPLIES 492.66 50550988 09/13/06 PARTS 308.15 50424319 09/12/06 WAREHOUSE SUPPLIES 45.55 1,381.55 2003138 10/18/06 01183 MCMASTER-CARRSUPPLYCO 51422168 09/28/06 DISTRICT FLAGS 408.71 51304472 09/26/06 PARTS 289.42 698.13 2003256 10/25/06 01183 MCMASTER-CARR SUPPLY CO 51536766 09/29/06 GASKET MATERIAL 273.36 51466227 09/28106 GASKET MATERIAL 169.94 443.30 2003139 10/18/06 06468 MEDELEINE FUENTES Ref002368633 10/17106 UB Refund Cst #0000083627 20.47 20.47 2003140 10/18106 06459 MICHAEL SHAW Ref002368624 10/17/06 UB Refund Cst #0000075754 101.74 101.74 Page 13 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003141 10/18106 00887 MIRAMAR TRUCK CENTER-SAN DIEGO 199304 09/27/06 BRAKE PARTS 130.71 130.71 2003005 10/11/06 01363 MISSION LINEN &UNIFORM 18027340 09/01/06 UNIFORMS,TOWELS &SUPPLIES 592.23 18029089 09/01/06 UNIFORMS,TOWELS &SUPPLIES 571.79 18029954 09/01106 UNIFORMS,TOWELS &SUPPLIES 565.51 18028210 09/01/06 UNIFORMS,TOWELS &SUPPLIES 562.53 18027338 09/01106 UNIFORMS,MATS,TOWELS &SUPPLIES 196.97 18029952 09/01/06 UNIFORMS,MATS,TOWELS &SUPPLIES 196.97 18028208 09/01/06 UNIFORMS,MATS,TOWELS &SUPPLIES 196.70 18029087 09/01106 UNIFORMS,MATS,TOWELS &SUPPLIES 196.70 S57839 09/01/06 UNIFORM REPLACEMENT 135.30 18027341 09/01/06 MATS,TOWELS &SUPPLIES 130.52 18028211 09/01/06 MATS,TOWELS &SUPPLIES 130.52 18029955 09/01/06 MATS,TOWELS &SUPPLIES 130.52 18029090 09/01/06 MATS,TOWELS &SUPPLIES 130.52 S57649 09101/06 UNIFORM REPLACEMENT 74.55 18027339 09/01/06 TOWELS &SUPPLIES 54.52 18028209 09/01/06 TOWELS &SUPPLIES 46.61 18029953 09101106 TOWELS &SUPPLIES 46.61 S57821 09/01/06 UNIFORM REPLACEMENT 46.00 18029088 09/01/06 TOWELS &SUPPLIES 38.70 S57650 09/01106 UNIFORM REPLACEMENT 4.00 4,047.77 2002926 10/04/06 03393 MOBILE MINI LLC -CA 90432497 09/11/06 RENTAL 40'STORAGE CONTAINERS 170.88 170.88 2003257 10/25/06 03393 MOBILE MINI LLC -CA 90440292 10101/06 RENTAL 40'STORAGE CONTAINERS 164.90 164.90 2003142 10/18106 06454 MODESTO CASTILLON Ref002368619 10/17106 UB Refund Cst #0000073127 164.68 164.68 2003258 10/25/06 03401 MODULAR MERCHANTS INC 1672 10/02/06 WORKSTATION 165.00 165.00 2003006 10/11106 02371 MOODY'S INVESTORS SERVICE C1572048000 09/15/06 1996 CERTIFICATES OF PARTICIPATION 5,500.00 5,500.00 2003259 10/25/06 03172 MOONEY,JONES AND STOKES 0035364 08/17/06 LA PRESAPIPELINE WETLAND PERMITTING 3,629.50 0036176 09/17106 LA PRESAPIPELINE WETLAND PERMITTING 1,013.73 4,643.23 2003260 10/25/06 03172 MOONEY,JONES AND STOKES 0035377 08/17/06 1004-2 RESERVOIR PROJECT 810.30 0036175 09/17/06 1004-2 RESERVOIR PROJECT 405.15 1,215.45 2002927 10/04/06 03623 MWH AMERICAS INC 1055089 08/28/06 450-1 RESERVOIR &680-1 PUMP STATION 8,142.43 8,142.43 2003261 10/25/06 03623 MWH AMERICAS INC 1063885 10/01/06 450-1 RESERVOIR &680-1 PUMP STATION 3,234.40 3,234.40 2002928 10/04/06 02037 MWH LABORATORIES 178178L1 07/26/06 LABORATORY ANALYSES 1,036.00 1,036.00 2003262 10/25/06 02037 MWH LABORATORIES 181077L1 09/28/06 REGULATORY ANALYSES 1,036.00 Page 14 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 183038L1 09/29/06 REGULATORY ANALYSES 762.00 1,798.00 2002929 10/04/06 04676 NAPA AUTO PARTS 044611 09/14/06 REPAIR PART 225.20 044625 09/14/06 REPAIR PARTS 91.65 044664 09/14/06 REPAIR PARTS 66.54 044435 09/13/06 REPAIR PART 38.55 044208 09/11/06 REPAIR PARTS 24.31 044146 09/11/06 REPAIR PARTS 22.70 044590 09/14/06 REPAIR PARTS 20.02 044276 09/12/06 REPAIR PARTS 16.55 044377 09/12106 REPAIR PARTS 10.99 043938 09/08/06 PARTS 10.18 044209 09/11106 REPAIR PART 3.99 044310 09/12/06 REPAIR PART 2.90 533.58 2003007 10/11106 04676 NAPAAUTO PARTS 045090 09/19/06 PART 576.94 044969 09/18106 PART 97.84 045053 09/19/06 PART 73.42 044994 09/18/06 PARTS 63.72 044963 09/18/06 REPAIR PARTS 57.54 045089 09/19/06 PARTS 52.00 044937 09/18106 REPAIR PART 45.14 044781 09/15106 REPAIR PART 44.17 045163 09/19106 PART 25.19 045295 09/20/06 PARTS 20.24 045040 09/19/06 PART 17.27 045375 09/21/06 PARTS 16.33 045304 09/20/06 PART 8.53 044957 09/18/06 REPAIR PARTS 6.09 045337 09/21/06 PART 5.38 045472 09/21/06 PART 3.89 045041 09/19/06 PART 3.22 045013 09/18/06 PART 3.14 1,120.05 2003143 10/18/06 06464 NASSAR NAMVAR Ref002368629 10/17/06 UB Refund Cst #0000082322 71.01 71.01 2002875 10/04106 03523 NATIONAL DEFERRED COMPENSATION Ben2368205 10/03/06 DEFERRED COMP PLAN 10,757.42 10,757.42 2003038 10/18/06 03523 NATIONAL DEFERRED COMPENSATION Ben2368556 10/17/06 DEFERRED COMP PLAN 10,506.81 10,506.81 2003008 10/11/06 03733 NEC UNIFIED SOLUTIONS INC VSH10225221 09/21/06 LABOR FOR PHONE SVCS 113.00 113.00 2002930 10/04/06 06283 NETWORK HARDWARE RESALE 125713 09/08/06 PART 3,195.00 3,195.00 2003144 10/18/06 03487 NETWORK INSIGHT NISD200601922 10/01/06 TEMPORARY SERVICES -IS DEPT 16,940.00 16,940.00 Page 15 of24 OTAY WATER DISTRICT CHECKREGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check#Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003263 10/25/06 03487 NETWORK INSIGHT NISD200601906 09/30/06 NETWORK MONITORING SERVICES 5,250.00 5,250.00 2002931 10/04/06 03571 NEXTLEVELINTERNET 11075 09/14/06 INTERNET WEB HOSTING 707.00 707.00 2003145 10/18106 06424 NICHOLAS FURICH Ref002368589 10/17/06 UB Refund Cst #0000007546 47.29 47.29 2003009 10/11/06 03299 OCB REPROGRAPHICS 4404964 09/20/06 MOUNTING DISPLAY 92.34 92.34 2003146 10/18/06 03299 OCB REPROGRAPHICS 4397435 09/15/06 COPY &PRINT SERVICES 572.64 572.64 2003264 10/25/06 03299 OCB REPROGRAPHICS 4436994 10105/06 COpy &PRINT SERVICES 26.94 4431909 10103/06 COPY &PRINT SERVICES 10.78 37.72 2002932 10104106 00510 OFFICE DEPOT INC 352177329001 09/13/06 OFFICE SUPPLIES 209.40 352176789001 09/13/06 OFFICE SUPPLIES 143.46 352022210001 09/13/06 OFFICE SUPPLIES 49.83 352176346001 09/13/06 OFFICE SUPPLIES 34.89 437.58 2003010 10/11106 00510 OFFICE DEPOT INC 352960294001 09/20/06 OFFICE SUPPLIES 139.61 352947394001 09/20106 ERGONOMIC KEYBOARD 116.28 353217873001 09/20106 OFFICE SUPPLIES 29.08 353021441001 09/20/06 OFFICE SUPPLIES 25.00 352949762001 09/20106 OFFICE SUPPLIES 5.99 315.96 2003147 10/18/06 00510 OFFICE DEPOT INC 354701522001 09/27/06 OFFICE SUPPLIES 1,253.73 354804591001 09/27/06 OFFICE SUPPLIES 295.76 353939451001 09/27/06 OFFICE SUPPLIES 183.36 353938304001 09/27/06 OFFICE SUPPLIES 87.16 1,820.01 2003265 10/25/06 00510 OFFICE DEPOT INC 355768666001 10/04/06 OFFICE SUPPLIES 98.06 354805191001 10104/06 MS INTELLIMOUSE EXPLORER OPTICAL 38.78 355767767001 10104/06 PICTURE FRAME 6.78 143.62 2003011 10/11106 01837 OFFICE TEAM 16841425 09/25/06 TEMPORARY SERVICES -METER SHOP 871.92 16788788 09/18/06 TEMPORARY SERVICES -METER SHOP 714.49 16742397 09/11106 TEMPORARY SERVICES -METER SHOP 557.06 16898135 10/02/06 TEMPORARY SERVICES -METER SHOP 532.84 2,676.31 2003148 10/18/06 01837 OFFICE TEAM 16935780 10/09/06 TEMPORARY SERVICES -METER SHOP 690.27 690.27 2003266 10/25/06 01837 OFFICE TEAM 17016813 10/25/06 TEMPORARY SERVICES -METER SHOP 605.50 16977471 10/11106 TEMPORARY SERVICES -METER SHOP 121.10 726.60 2003012 10/11/06 03149 ON SITE LASER 37613 09/19/06 MAINTENANCE SERVICE 381.48 381.48 2003013 10/11/06 00496 ONE SOURCE DISTRIBUTORS INC S2561666001 09/18/06 ELECTRICAL SUPPLIES 676.62 Page 16 of24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total S2553191001 09/15106 ELECTRICAL SUPPLIES 299.49 976.11 2003149 10/18106 00496 ONE SOURCE DISTRIBUTORS INC S2563294001 09/25106 HEATER 76.53 76.53 2003267 10/25/06 00496 ONE SOURCE DISTRIBUTORS INC S2563294002 10102/06 ELECTRICAL PART 101.06 101.06 2002933 10104/06 03038 ORANGE LINE OIL COMPANY INC 90894 09/13106 OIL 2,230.28 2,230.28 2002934 10/04/06 02721 ORTIZ CORPORATION 16 09/14/06 30"WATER PIPLINE &450-1 RESERVOIR 639,804.08 639.804.08 2002876 10/04/06 03101 OTAYWATER DISTRICT Ben2368207 10/03/06 PAYROLL DEDUCTION -ASSN DUES 805.00 Ben2368273 10/05/06 PAYROLL DEDUCTION -ASSN DUES 7.00 812.00 2003039 10/18106 03101 OTAY WATER DISTRICT Ben2368558 10/17/06 PAYROLL DEDUCTION -ASSN DUES 798.00 798.00 2003150 10/18/06 06462 OWEN REAGAN Ref002368627 10/17106 UB Refund Cst #0000080616 45.99 45.99 2003151 10/18/06 06484 PACIFIC BUILDING GROUP Ref002368649 10/17/06 UB Refund Cst #0000088513 731.49 731.49 2003014 10/11/06 04463 PACIFIC GREEN LANDSCAPE INC 00407631N 09/15106 LANDSCAPING SERVICES 7,850.00 00408581N 09/15106 REPAIR SERVICE 279.46 00408591N 09/15106 REPAIR SERVICE 88.60 8,218.06 2003015 10/11/06 03017 PACIFIC SAFETY COUNCIL 015363 10/09106 SEMINAR REGISTRATION 155.00 155.00 2003268 10/25/06 05497 PAYPAL INC 3009550 09/30/06 ON-LINE PAYMENT SERVICES 285.70 285.70 2003016 10/11/06 03308 PBS&J 304814 09/21/06 OWD WASTE DISCHARGE PERMITS REVISION 20,541.05 20,541.05 2003017 10/11/06 03790 PENHALL COMPANY 3713 09/20/06 FLAT SAW CUTTING SERVICES 375.00 375.00 2003152 10/18/06 00593 PEPPER OIL COMPANY INC 599440 09/25/06 UNLEADED FUEL 11,752.70 599432 09/26/06 FUEL 5,284.00 599399 09/19/06 FUEL 4,842.70 21,879.40 2003153 10/18/06 03180 PERFORMANCE METER INC 00114371N 09/27/06 SINGLE CHECK VALVE 267.38 267.38 2002877 10104/06 00137 PETTY CASH CUSTODIAN 015343 10/03106 PETTY CASH REIMBURSEMENT 970.17 970.17 2003040 10/18/06 00137 PETTY CASH CUSTODIAN 015380 10/17/06 PETTY CASH REIMBURSEMENT 1,255.79 1,255.79 2002935 10104106 04983 PICNIC PEOPLE SAN DIEGO 1842 09/07106 BALANCE DUEIEMPLOYEE PICNIC 2,375.82 2,375.82 2003269 10/25/06 03617 PILLSBURY WINTHROP 7275450 09/12/06 LEGAL SERVICES 201.16 201.16 2002936 10/04/06 02786 PIONEER AMERICAS LLC 5538749241 09/13/06 CHLORINE 2,187.55 2,187.55 Page 17 of 24 -.-~-~---~~~-~,- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003270 10/25106 02786 PIONEER AMERICAS LLC 5538754328 10/04106 CHLORINE 2,187.55 2,187.55 2003271 10/25106 06164 PMC CONSULTING 3615 09/15/06 TECHNICAL SUPPORT FOR AUTOCAD 3,925.00 3,925.00 2003018 10/11106 03242 POLYDYNE INC 309363 09/11/06 POLYMER 5,757.08 5,757.08 2003019 10/11/06 05499 PRAXAIR DISTRIBUTION INC 24099872 09/20/06 WELDING SUPPLIES &EQUIPMENT 403.00 403.00 2003154 10/18/06 05499 PRAXAIR DISTRIBUTION INC 2 09/22/06 WELDING SUPPLIES &EQUIPMENT 116.70 116.70 2002937 10/04/06 06410 PRISM S.C.SYSTEMS,INC.1336 08/18106 SURVEYEQUIPMENT REPAIRS 194.98 194.98 2003020 10/11/06 06294 PROMOTABLES LLC/123-AWARDS 1928 09/13/06 PLAQUE 123.61 123.61 2003021 10/11/06 00078 PUBLIC EMPLOYEES RETIREMENT Ben2368201 10/03106 PERS CONTRIBUTION 110,934.68 110,934.68 2003272 10/25/06 00078 PUBLIC EMPLOYEES RETIREMENT Ben2368552 10/17/06 PERS CONTRIBUTION 108,588.25 108,588.25 2002938 10/04/06 01342 R J SAFETYSUPPLY CO INC 22844000 09/13106 SAFETY SUPPLIES 214.80 214.80 2003273 10/25/06 01342 R J SAFETYSUPPLY CO INC 22953700 10104/06 SAFETY SUPPLIES 457.47 457.47 2002878 10/04/06 05991 RANKINS,MIA 015342 10/03/06 MED/DEN PREMIUM OVERPMT 416.25 416.25 2002939 10/04/06 00766 RANROY PRINTING COMPANY 085917 09/08106 PRINTING SERVICE 48.49 48.49 2003155 10/18106 02041 RBF CONSULTING 6081607 09/22/06 30"RECYCLED WATER PIPELINE 40,751.00 9373 08/11106 30"RECYCLED WATER PIPELINE 32,506.00 73,257.00 2003274 10/25106 02891 RED WING SHOE STORE 8270000000716 10/03/06 SAFETY BOOTS 137.37 137.37 2002940 10/04/06 05757 RIENDEAU,MARTA 015333 10/02/06 REIMB MEMBERSHIP DUES 155.00 155.00 2003156 10/18/06 06421 RJN INVESTIGATIONS 06094235 09/20/06 PERSONNEL SVCS -SURVEY CLASS/COMP 984.60 984.60 2003157 10/18106 06458 ROBIN DYE Ref002368623 10/17/06 UB Refund Cst #0000074166 49.22 49.22 2002941 10104106 06412 ROMERO,TANYA 015326 09/27106 COMPUTER LOAN PROGRAM 1,743.34 1,743.34 2003158 10/18106 06428 ROYSCHARDIN Ref002368593 10/17/06 UB Refund Cst #0000014020 18.68 18.68 2003022 10/11/06 00217 RW LITTLE CO INC 78928 08/23/06 POWDER COAT 250.00 79241 09/15/06 SANDBLASTING/POWDERCOAT SVCS 180.00 78929 08/23/06 POWDER COAT 100.00 530.00 Page 18 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003275 10/25106 03687 SAFETY-KLEEN SYSTEMS INC M003665771 09/22/96 USED OIL PICK UP 25.00 25.00 2003159 10/18/06 06467 SALLY LEI Ref002368632 10/17/06 UB Refund Cst #0000083452 61.31 61.31 2003160 10/18/06 06479 SAMANTHACASTILLA Ref002368644 10/17/06 UB Refund Cst#0000087639 226.35 226.35 2003276 10/25/06 03803 SAN DIEGO CLIPPING SERVICE INC 439061004 10/04/06 NEWSPAPER CLIPPING SERVICE 80.00 80.00 2002942 10/04/06 02680 SAN DIEGO COUNTY 585160200006 10/03/06 PROPERTY TAXES 138.84 138.84 2003161 10/18/06 00247 SAN DIEGO DAILY TRANSCRIPT 22730 09/14/06 ENG CONSULTANT SVCS AD 649.60 649.60 2002943 10/04/06 00121 SAN DIEGO GAS &ELECTRIC 015323 08/22/06 UTILITY EXPENSES 77,027.74 015328 08/22106 UTILITY EXPENSES 51,218.74 015321 08/23106 UTILITY EXPENSES 8,077.68 015330 08/24/06 UTILITY EXPENSES 2,687.63 139,011.79 2003023 10/11106 00121 SAN DIEGO GAS &ELECTRIC 015362 09/30/06 UTILITYEXPENSES 2,603.66 015355 09/30/06 UTILITYEXPENSES 969.93 3,573.59 2003162 10/18/06 00121 SAN DIEGO GAS &ELECTRIC .015346 08/30106 UTILITY EXPENSES 45,970.32 45,970.32 2003277 10/25106 00121 SAN DIEGO GAS &ELECTRIC 015386 10/17/06 UTILITY EXPENSES 124,935.81 124,935.81 2002944 10104106 03809 SAN DIEGO NEIGHBORHOOD NEWS 01522567001 09/08/06 JOB POSTING 155.40 01522566001 09/08/06 JOB POSTING 147.00 01522568001 09/08106 JOB POSTING 142.80 445.20 2003163 10/18/06 03809 SAN DIEGO NEIGHBORHOOD NEWS 01523104001 10/06/06 JOB POSTING 134.40 134.40 2003278 10/25/06 03809 SAN DIEGO NEIGHBORHOOD NEWS 01522934001 09/29/06 JOB POSTING 298.20 298.20 2003164 10/18/06 03273 SAN DIEGO READER 154 09/27/06 JOB POSTING 115.20 152 09/27/06 JOB POSTING 105.75 153 09/27/06 JOB POSTING 99.13 320.08 2003165 10/18106 06478 SARA WRIGHT Ref002368643 10/17106 UB Refund Cst #0000087390 56.96 56.96 2002945 10104106 04556 SAVE-A-liFE EDUCATORS INC 015338 09/25/06 CPR TRAINING 296.00 296.00 2003166 10/18106 06444 SCOTT O'HUSKY Ref002368609 10/17/06 UB Refund Cst #0000058947 26.95 26.95 2003279 10/25/06 01958 SHACKLEY,RICHARD D 10681006 10/24/06 MILEAGE REIMBURSEMENT 85.22 85.22 2003024 10/11/06 01651 SHARP REES-STEALY MEDICAL CTRS 180A 09/16/06 HEALTH EXAM 113.00 180B 09/16/06 HEALTH EXAM 88.00 Page 19 of 24 OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS2002872 THROUGH2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 180C 09/16/06 HEALTH EXAM 88.00 180 09/16/06 HEALTH EXAM 88.00 377.00 2003167 10/18/06 06422 SHEA HOMES Ref002368587 10/17106 UB Refund Cst #0000000212 849.54 849.54 2002946 10/04/06 05421 SHERWIN WILLIAMS 94899 09/08/06 PAINT 260.62 260.62 2003168 10/18/06 05421 SHERWIN WILLIAMS 01373 09/27/06 PAINT 1,070.00 1,070.00 2003169 10/18/06 02802 SHERWOOD,KIM 357708330 10/07/06 REIMBURSE SAFETY BOOTS 96.95 96.95 2003025 10/11106 05983 SIEMENS WATER 4321217 09/20/06 DEIONIZED PROCESSING TANK RENTAL 66.00 66.00 2003280 10/25106 05983 SIEMENS WATER 1919657 09/28106 DEIONIZED PROCESSING TANK RENTAL 100.00 100.00 2003281 10/25/06 05627 SIGNA DIGITAL SOLUTIONS INC ARS04252 10104/06 COPIER MAINT SERVICE 454.88 ARS04211 10102/06 COPIER MAINT SERVICE 113.76 ARS04202 10102106 COPIER MAINT SERVICE 101.00 ARS04201 10102/06 COPIER MAINT SERVICE 101.00 ARS04233 10103/06 COPIER MAINT SERVICE 24.00 794.64 2003282 10/25106 06493 SIGNIFICANT DIGITS,INC.06H1760395 09/06106 EZREADER ON SITE TRAINING 719.68 719.68 2003170 10/18/06 01691 SKILLPATH SEMINARS 8853571 09106/06 SEMINAR REGISTRATION 199.00 199.00 2002947 10/04/06 00258 SLOAN ELECTRIC CO 0050599 09/12/06 5 HP MOTORS 1,237.96 1,237.96 2003171 10/18/06 00258 SLOAN ELECTRIC CO 0050723 09/27/06 HIGH VOLTAGE FUSES 810.68 810.68 2002948 10104/06 03103 SOUTHCOAST HEATING &C30296 09/11/06 AIR CONDITIONING MAINTENANCE 857.00 857.00 2003026 10/11/06 03103 SOUTHCOAST HEATING &241783 09/19106 AIR CONDITIONING MAINTENANCE 512.00 512.00 2003283 10/25/06 06494 SOUTHLAND TITLE 36333775 09/07106 PRELIMINARY REPORTS 1,000.00 36334054 09/27106 PRELIMINARY REPORTS 700.00 1,700.00 2002949 10104/06 03760 SPANKY'S PORTABLE SERVICES INC 540379 09/13/06 PORTABLE TOILET RENTAL 55.64 55.64 2003027 10/11106 03760 SPANKY'S PORTABLE SERVICES INC 540555 09/14/06 PORTABLE TOILET RENTAL 84.13 84.13 2003284 10/25/06 03760 SPANKY'S PORTABLE SERVICES INC 543166 09/29/06 PORTABLE TOILET RENTAL 68.62 543165 09/29/06 PORTABLE TOILET RENTAL 67.02 543167 09/29106 PORTABLE TOILET RENTAL 67.02 543168 09/29/06 PORTABLE TOILET RENTAL 67.02 543600 10/02106 PORTABLE TOILET RENTAL 67.02 336.70 Page 20 of24 OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2003285 10/25/06 03600 SPRINT 015382 10/14/06 WIRELESS CARDS SERVICE 393.52 393.52 2002950 10/04106 02354 STANDARD ELECTRONICS 8378 09/08/06 FIRE &SECURITY MONITORING 9,720.00 9,720.00 2003172 10/18/06 02354 STANDARD ELECTRONICS 8456 09/25/06 SECURITY SERVICE &REPAIRS 1,501.90 1,501.90 2003286 10/25/06 00214 STAR NEWS 194 10/24/06 SUBSCRIPTION RENEWAL 25.00 25.00 2002951 10/04/06 00480 STATE BOARD OF EQUALIZATION 015335 09/30/06 SALES USE TAX 62.23 62.23 2003287 10/25/06 00097 STATE BOARD OF EQUALIZATION 4402213309 09/30106 UNDERGROUND STORAGE TANK MAINT FEE 276.85 276.85 2002879 10/04/06 06295 STATE DISBURSEMENT UNIT Ben2368215 10/03/06 PAYROLL DEDUCTION 294.46 294.46 2002880 10/04/06 06299 STATE DISBURSEMENT UNIT Ben2368213 10/03/06 PAYROLL DEDUCTION 237.69 237.69 2002881 10104/06 06303 STATE DISBURSEMENT UNIT Ben2368219 10/03/06 PAYROLL DEDUCTION 139.84 139.84 2003041 10/18/06 06295 STATE DISBURSEMENT UNIT Ben2368566 10/17106 PAYROLL DEDUCTION 294.46 294.46 2003042 10/18/06 06299 STATE DISBURSEMENT UNIT Ben2368564 10/17/06 PAYROLL DEDUCTION 237.69 237.69 2003043 10/18/06 06303 STATE DISBURSEMENT UNIT Ben2368570 10/17106 PAYROLL DEDUCTION 139.84 139.84 2002882 10104/06 02261 STATE STREET BANK &TRUST CO Ben2368203 10/03/06 DEFERRED COMP PLAN 2,264.23 2,264.23 2003044 10/18/06 02261 STATE STREET BANK &TRUST CO Ben2368554 10/17/06 DEFERRED COMP PLAN 2,389.23 2,389.23 2003173 10/18106 03309 STATE WATER RESOURCES 015368 09/20/06 WETLANDS PERMIT 500.00 500.00 2003174 10/18/06 06425 STEPHEN VOLTERO Ref002368590 10/17/06 UB Refund Cst#0000009027 124.00 124.00 2003175 10/18/06 06489 STEVEGRADY Ref002368654 10/17/06 UB Refund Cst#0000090552 42.13 42.13 2003028 10/11/06 03681 STI/STEEL PLATE FABRICATORS 015360 10/09/06 SEMINAR REGISTRATION 640.00 640.00 2003176 10/18/06 06470 SUSAN MATEO Ref002368635 10/17106 UB Refund Cst#0000084329 25.42 25.42 2002952 10/04/06 00408 SWEETWATER AUTHORITY 015341 08/22/06 TEMPORARYWATER USE 419.19 419.19 2003177 10/18/06 00408 SWEETWATERAUTHORITY 015366 10/12/06 REFUND CUSTPAYMENT 50.00 50.00 2003178 10/18/06 05526 T M PEMBERTON INC 23481 09/22/06 CEMENT 451.35 451.35 2002953 10/04/06 02799 TARULLI TIRE INC -SAN DIEGO 20027045 09/14/06 TIRE REPAIR SERVICES 279.16 20027047 09/14/06 TIRE REPAIR SERVICES 175.55 Page 21 of 24 OTAYWATER DISTRICT CHECK REGISTER FORCHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 20027042 09/14/06 TIRE REPAIR SERVICES 33.47 20027043 09/14/06 TIRE REPAIR SERVICES 32.00 20026985 09/12/06 TIRE REPAIR SERVICES 29.09 20026984 09/12106 TIRE REPAIR SERVICES 26.93 20026986 09/12106 TIRE REPAIR SERVICES 20.47 596.67 2003029 10/11/06 02799 TARULLI TIRE INC -SAN DIEGO 20027062 09/15106 TIRE REPAIR SERVICES 561.82 20027075 09/19/06 TIRE REPAIR SERVICES 324.12 20027123 09/20/06 TIRE REPAIR SERVICES 290.28 20027081 09/18/06 TIRE REPAIR SERVICES 40.00 20027079 09/18/06 TIRE REPAIR SERVICES 20.00 1,236.22 2003180 10/18/06 02799 TARULLI TIRE INC -SAN DIEGO 20027148 09/22/06 TIRE REPAIR SERVICES 333.01 20027135 09/26/06 REPAIR SERVICE 141.14 474.15 2003181 10/18/06 06481 TC CONSTRUCTION Ref002368646 10/17/06 UB Refund Cst #0000088138 163.80 163.80 2003030 10/11/06 03770 TEAMAN,RAMIREZ &SMITH INC 206232755 09105106 AUDIT SERVICES 15,000.00 15,000.00 2003182 10118106 06457 TFW CONSTRUCTION Ref002368622 10117106 UB Refund Cst #0000073972 850.00 850.00 2003183 10118106 06473 TFW CONSTRUCTION Ref002368638 10117/06 UB Refund Cst #0000086482 850.00 850.00 2003179 10/18106 04977 T-MOBILE 4150860451006 10104106 CELL PHONE &BLACKBERRIES SERVICES 2,597.47 4272085931006 10/04106 CELL PHONE &BLACKBERRIES SERVICES 28.26 2,625.73 2003184 10118/06 06477 TRIMARK PACIFIC MAR BRISALLC Ref002368642 10117106 UB Refund Cst#0000087369 850.00 850.00 2003288 10125/06 00427 UNDERGROUND SERVICE ALERT OF 920060460 10/01106 UNDERGROUND TRENCH SERVICE ALERTS 412.80 412.80 2002954 10104106 02529 UNION TRIBUNE PUBLISHING CO 015343 10/03106 SUBSCRIPTION RENEWAL 185.00 185.00 2003185 10/18/06 02613 UNITED RENTALS NORTHWEST INC 59700538001 09/27106 CONCRETE 118.53 118.53 2002883 10104/06 05417 UNITED STATES DEPARTMENT Ben2368223 10/03106 PAYROLL DEDUCTION 100.00 100.00 2003045 10118/06 05417 UNITED STATES DEPARTMENT Ben2368574 10117/06 PAYROLL DEDUCTION 100.00 100.00 2002955 10104/06 00853 UNIVAR USA INC SD620775 09112/06 AMMONIA 1,801.41 SD620777 09112106 AMMONIA 1,673.81 SD620778 09112/06 AMMONIA 577.60 SD620776 09112/06 AMMONIA 450.35 4,503.17 2003186 10118106 00853 UNIVAR USA INC SD621538 09126106 BULK AQUAAMMONIA 1,951.53 SD621537 09126/06 BULK AQUAAMMONIA 1,651.29 3,602.82 Page 22 of 24 ._--~-~~~ OTAYWATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002884 10/04/06 01095 VANTAGEPOINT TRANSFER AGENTS Ben2368271 10/05/06 401A PLAN 19,744.07 Ben2368211 10/03/06 DEFERRED COMP PLAN 5,953.73 25,697.80 2002956 10/04/06 01095 VANTAGEPOINT TRANSFERAGENTS 015344 10/04/06 DEFERRED COMP PLAN 5,953.73 5,953.73 2002957 10/04/06 06414 VANTAGEPOINTTRANSFERAGENTS 015345 10/04/06 DEFERRED COMP PLAN 19,744.07 19,744.07 2003046 10/18/06 01095 VANTAGEPOINT TRANSFERAGENTS Ben2368562 10/17/06 DEFERRED COMP PLAN 5,354.47 5,354.47 2003047 10/18/06 06414 VANTAGEPOINT TRANSFERAGENTS Ben2368665 10/17/06 401APLAN 18,439.74 18,439.74 2003187 10/18/06 03329 VERIZON WIRELESS 2076190986 09/21/06 CELL PHONE SERVICE 4,228.11 4,228.11 2002958 10/04/06 00101 W W GRAINGER INC 9188823000 09/14/06 WAREHOUSE SUPPLIES 260.55 9185409431 09/11/06 WAREHOUSE SUPPLIES 237.59 9187544292 09/13/06 WAREHOUSE SUPPLIES 110.20 9185618130 09/11/06 WAREHOUSE SUPPLIES 85.41 9185653954 09/11/06 WAREHOUSE SUPPLIES 72.33 9188067657 09/14/06 WAREHOUSE SUPPLIES 60.34 9185409449 09/11/06 WAREHOUSE SUPPLIES 58.99 9187374047 09/13/06 WAREHOUSE SUPPLIES 53.88 939.29 2003031 10/11/06 00101 W W GRAINGER INC 9194054301 09/21/06 WAREHOUSE SUPPLIES 33.61 33.61 2003188 10/18/06 00101 W W GRAINGER INC 9197041099 '09/26/06 WAREHOUSE SUPPLIES 192.40 9197182505 09/26/06 WAREHOUSE SUPPLIES 162.70 9197182513 09/26/06 WAREHOUSE SUPPLIES 22.84 377.94 2003289 10/25/06 00101 W W GRAINGER INC 9192267343 09/19/06 CLAVAL SOLENOIDS 414.58 414.58 2003189 10/18/06 00262 WATER AGENCIES ASSOCIATION 015372 10/16/06 MEETING REGISTRATION 40.00 40.00 2003190 10/18/06 02700 WATER CONSERVATION GARDEN 092606 09/26/06 2ND QTR OPERATING COSTS 18,750.00 18,750.00 2003290 10/25/06 00215 WATER EDUCATION FOUNDATION 015389 10/24/06 SUBSCRIPTION RENEWAL 25.00 25.00 2002959 10/04/06 01343 WE GOT YA PEST CONTROL 37309 09/12/06 BEE REMOVAL 115.00 115.00 2003032 10/11/06 01343 WE GOT YA PEST CONTROL 36974 08/28/06 BEE REMOVAL 1,100.00 1,100.00 2003033 10/11/06 00190 WEST PAYMENT CENTER 812173103 09/20/06 LEGAL LIBRARY UPDATES 161.65 161.65 2002960 10/04/06 03692 WESTIN ENGINEERING INC 26603 09/11/06 SCDA DOCUMENTATION PROJECT 13,601.42 13,601.42 2003291 10/25/06 03437 WIENHOFF DRUG TESTING INC 12062 10/02/06 HEALTH TESTS 255.00 255.00 Page 23 of 24 _._--~.._-------~~~~~---_.-~~-~-"'"'~-.~_''='''.''~.';<'''/I''''.-::---'''''''C'';;;:;~- OTAY WATER DISTRICT CHECK REGISTER FOR CHECKS 2002872 THROUGH 2003292 RUN DATES 10/4/2006 TO 10/25/2006 Check #Date Vendor Vendor name Invoice Inv Date Description Amount Paid Check Total 2002961 10104106 02725 WILLIAMS SCOTSMAN 65778542 09/08106 MOBILE OFFICE RENTAL 310.52 310.52 2003292 10/25106 03283 WILSON BOHANNAN COMPANY 00088151N 09/25/06 BRASS PADLOCKS 153.63 153.63 2002962 10104/06 03468 WILSON,PETTY,KOSMO &19657 08/31/06 LEGAL SERVICES AUG 2006 134.58 134.58 2003034 10/11/06 03468 WILSON,PETTY,KOSMO &SEMOO01 10104/06 SEMINAR REGISTRATION 200.00 200.00 2003191 10/18106 06437 ZACHARY MORGAN Ref002368602 10/17/06 UB Refund Cst #0000044481 33.92 33.92 GRAND TOTAL 2,301,070.69 2,301,070.69 Page 24 of 24