HomeMy WebLinkAbout05-03-23 Board Packet1
OTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
BOARD OF DIRECTORS MEETING
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
MAY 3, 2023
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF
MARCH 1, 2023
5. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD’S JURISDICTION INCLUDING AN ITEM ON TODAY’S AGENDA
The District’s meeting is live streamed. Information on how to watch and listen to
the District’s meeting can be found at this link: https://otaywater.gov/board-of-
directors/agenda-and-minutes/board-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
PARTICULAR ITEM:
a) AUTHORIZE THE GENERAL MANAGER TO ENTER INTO AGREEMENTS
FOR TERMS OF TWO-YEARS, PLUS THREE ONE-YEAR EXTENSION OP-
TIONS WITH INFOSEND TO PROVIDE BILL PRINT AND ELECTRONIC
BILL PRESENTMENT SERVICES IN AN AMOUNT NOT-TO-EXCEED
$1,475,000 ($295,000 ANNUALLY, INCLUDES AVERAGE ANNUAL PASS-
THROUGH POSTAGE COSTS OF $195,000); AND WITH i3 VERTICALS,
2
LLC TO PROVIDE ONLINE PAYMENT TRANSACTION PROCESSING SER-
VICES ESTIMATED TO BE $3,100,000 (APPROXIMATELY $620,000 ANNU-
ALLY, AMOUNT BASED ON 1% OF TOTAL PAYMENTS)
b) ADOPT RESOLUTION NO. 4424 TO UPDATE THE DISTRICT’S CODE OF
ORDINANCES’ BOARD POLICY NO. 34, STAFF TRAVEL AND BUSINESS-
RELATED EXPENSES POLICY, AND BOARD POLICY NO. 46, MEDIA RE-
LATIONS POLICY
c) ADOPT RESOLUTION NO. 4427 TO AMEND POLICY NO. 25, RESERVE
POLICY, OF THE DISTRICT’S CODE OF ORDINANCES
d) RECEIVE THE DISTRICT’S INVESTMENT POLICY, POLICY NO. 27 OF THE
DISTRICT’S CODE OF ORDINANCES, FOR REVIEW AND RE-DELEGATE
AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE
CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT
CODE SECTION 53607
ACTION ITEMS
7. BOARD
a) ADOPT RESOLUTION NO. 4429, A RESOLUTION OF THE BOARD OF DI-
RECTORS OF THE OTAY WATER DISTRICT, CONGRATULATING VISTA
IRRIGATION DISTRICT ON ITS 100TH ANNIVERSARY ON SEPTEMBER 11,
2023 (MARTINEZ)
b) ADOPT RESOLUTION NO. 4430, A RESOLUTION OF THE BOARD OF DI-
RECTORS OF THE OTAY WATER DISTRICT, CONGRATULATING SANTA
FE IRRIGATION DISTRICT ON ITS 100TH ANNIVERSARY ON JUNE 21, 2023
(MARTINEZ)
c) ADOPT RESOLUTION NO. 4428, A RESOLUTION OF THE BOARD OF DI-
RECTORS OF THE OTAY WATER DISTRICT, PLACING IN NOMINATION
JOSE MARTINEZ AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA
WATER AGENCIES REGION 10 BOARD MEMBER (MARTINEZ)
d) DISCUSS THE 2023 BOARD MEETING CALENDAR (RAMOS-KROGMAN)
REPORTS
8. GENERAL MANAGER’S REPORT
9. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
10. DIRECTORS' REPORTS/REQUESTS
3
11. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
12. CLOSED SESSION
a) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV-
ERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOV-
ERNMENT CODE §54956.9]
MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-
2015-000-CU-MC-CTL
c) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION
(§ 54956.9(b)) ONE MATTER:
SCHEUSTER ET AL. vs. OTAY WATER DISTRICT
RETURN TO OPEN SESSION
13. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD
MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION.
OTAY WATER DISTRICT FINANCING AUTHORITY
14. NO MATTERS TO DISCUSS
15. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be
deliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered
at the open meeting, or to any attachments, will be posted on the District’s website.
Copies of the Agenda and all attachments are also available by contacting the District
Secretary at (619) 670-2253.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at (619) 670-2253 at least
24 hours prior to the meeting.
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Certification of Posting
I certify that on April 28, 2023, 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 April 28, 2023.
/s/ Tita Ramos-Krogman, District Secretary
1
MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE
OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 1, 2023.
1.The meeting was called to order by President Robak at 3:42 p.m.
2.ROLL CALL
Directors Present: Croucher, Keyes, Robak (Remotely Attended), and Smith
Directors Absent: Director Lopez
Staff Present: General Manager Jose Martinez, General Counsel Dan
Shinoff, Chief of Engineering Michael Long, Chief Financial
Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Croucher, seconded by Director Smith, and carried
with the following vote:
Ayes: Directors Croucher, Keyes, Robak and Smith Noes: None
Abstain: None
Absent: Director Lopez
to approve the agenda.
5.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF
JANUARY 4, 2023
A motion was made by Director Croucher, seconded by Director Smith, and carriedwith the following vote:
Ayes: Directors Croucher, Keyes, Robak and Smith Noes: None Abstain: None Absent: Director Lopez
to approve the minutes of the regular board meeting of January 4, 2023.
AGENDA ITEM 4
2
6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard.
CONSENT ITEM 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM:
A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Robak and Smith
Noes: None Abstain: None Absent: Director Lopez to approve the following consent calendar item:
a) AUTHORIZE THE GENERAL MANAGER TO EXECUTE A REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE DISTRICT FOR THE 624/340 PRESSURE REDUCING STATION AND 16-INCH PIPELINE FOR THE HERITAGE ROAD BRIDGE
REPLACEMENT PROJECT (CIPS P2405 & P2553) b) ADOPT RESOLUTION NO. 4423 FOR THE RACHEL VARGAS SEWER ANNEXATION, 1939 VEREDA COURT, EL CAJON, CA 92019, APN: 517-111-53-00 TO THE OTAY WATER DISTRICT SEWER IMPROVEMENT
DISTRICT NO. 18 (ANX-22-004) c) ADOPT RESOLUTION NO. 4422 TO DESIGNATE DISTRICT STAFF AS AUTHORIZED AGENTS TO CAL OES
ACTION ITEMS 8. BOARD a) DISCUSS THE 2022 BOARD MEETING CALENDAR
District Secretary Tita Ramos-Krogman indicated that a Communications, Public Relations, Legal and Legislative Committee meeting is scheduled for March 16, 2023, at 12pm.
There were no other changes to the board calendar.
3
9. ENGINEERING
a) APPROVE WATER SUPPLY ASSESSMENT REPORT AND VERIFICATION
(WSA&V REPORT) DATED FEBRUARY 2023 FOR THE CITY OF CHULA VISTA OTAY RANCH TOWN CENTER REDEVELOPMENT PROJECT AS REQUIRED BY SENATE BILLS 610 AND 221 (D1152-090587)
Environmental Specialist Lisa Coburn-Boyd provided a PowerPoint presentation to
the board. In response to comments and a question from Director Smith, Ms. Coburn-Boyd stated that most recycled water is utilized by District residents. A motion was made by Director Keyes, seconded by Director Croucher, and carried
with the following vote:
Ayes: Directors Croucher, Keyes, Robak and Smith Noes: None Abstain: None
Absent: Director Lopez
to approve staff’s recommendation. INFORMATIONAL ITEMS
10. ENGINEERING a) SECOND QUARTER FISCAL YEAR 2023 CAPITAL IMPROVEMENT PROGRAM REPORT
The Board waived the staff report and PowerPoint presentation. b) UPDATE OF THE DISTRICT’S HAZARD MITIGATION ACTION PLAN
The Board waived the staff report and PowerPoint presentation. REPORTS 11. GENERAL MANAGER REPORT
General Manager Jose Martinez provided his GM Report to the board and discussed the California Society of Municipal Finance Officers (CSMFO) Operating Budget Award, CSMFO Capital Budget Award, and Low Income Household Water Assistance Program. He also discussed that the Treatment Plant was placed on
bypass mode while no discharge of recycled water occurred from February 1st to February 6th.
4
12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith shared that CWA discussed impacts from atmospheric rivers, its
budget process, water supply allocation plan, MWD’s Board Retreat, climate change adaptation. He also provided an update from the February 28, 2023, MWD Board meeting.
13. DIRECTORS' REPORTS/REQUESTS
Written reports from Directors Keyes and Smith were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting.
14. PRESIDENT’S REPORT
President Robak indicated that the board will be considering a Per Diem increase at the next board meeting. He also indicated that Helix Water District will be part of the OWD & Sweetwater Authority Task Force to Develop Recycled Water
Opportunities.
A written report from President Robak was submitted to District Secretary Ramos-Krogman and will be attached to the minutes for today’s meeting. 15. CLOSED SESSION The board recessed to closed session at 4:21 p.m. to discuss the following matters:
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] NAME OF CLAIMANT: FOOTHILLS UNITED METHODIST CHURCH
b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY
CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property
c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
5
Director Croucher left at 5:16 p.m.
RETURN TO OPEN SESSION 16. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
The board reconvened from closed session at 5:16 p.m. and General Counsel Dan Shinoff reported that the board took the following action: Agenda Item 14a, with a motion of 4-0, the board rejected the claim from Foothills United Methodist Church. No other reportable actions were taken.
OTAY WATER DISTRICT FINANCING AUTHORITY 17. NO MATTERS TO DISCUSS
There were no items scheduled for discussion for the Otay Water District Financing
Authority board. 18. ADJOURNMENT
With no further business to come before the Board, President Smith adjourned the
meeting at 5:17 p.m.
President ATTEST:
District Secretary
1896 From:3/1/23---3/31/23
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 3/1/2023 OWD Board Mtg Monthly Board Meeting
2 3/1/2023 Special Districts Leadership
Academy Leadership Academy (no charge)
3 3/5/2023 CSDA Class SB 1383 Reducing Short Lived Climate
Pollutants in CA
4 3/10/2023 Mtg. with Joe & Kevin Mtg. to discuss details of Finance Dept.
5 3/12/2023 CSDA Class Prevailing Wage Update 2023
6 3/14/2023 CSDA Dinner Presenation on status of Colorado River
(No Charge)
7 3/18/2023 CSDA Class Final Cal/OSHA COVID-19 Safety Standard
8 3/22/2023 CSDA Class Building Relationships with Your Lawmaker's
District Office
9 3/29/2023 CSDA Class Is Your District Recession Ready?
10 3/31/2023 CSDA Class RatePayer Assistance and Water Shutoff Laws
$ 1,264.00
Miles
GM Receipt: Date: ___________________
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Ryan Keyes Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($158 PER MEETING)
Total Meeting Per
Diem:
04/24/23
Pay To: Tim Smith
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Employee Number 1845 From:
ITEM DATE
I 3// I //2023
2 3/14/2023
3 3/15/2023
4 3/21/2023
5 3/22/2023
6 3/30/2023
7
8
9 10 Total Meeting Per
Diem:
(Sl58 PER i\lEETING)
Total Mileage
Claimed:
GM Receipt:
MEETING PURPOSE / ISSUES
OWD Board Meeting Monthly Board Meeting
Colorado River Board Dinner Attended Colorado River Board Dinner and
presemation by GM Martinez
CW A Matters -Budget Discuss CWA preliminary Budget with
Croucher and GIVI Martinez
CWA Matters Discuss CWA Matters with GM Martinez
and Director Croucher
East County Caucus Dicuss East County issues with agencies and
CWA
SWP Tour Coordination Discuss SWP Tour Agenda with attendees for
Meeting April tour
$ 948.00
u1rcctor ::,igna1u,·e
118 Miles
Date: q/r-z(-zo-Z. �
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ ____ _
Period Covered
3/1/2023 to 3/31/2023
MILEAGE 110!\IE i\llLEAGE
TOOWDO\\'DTO OTHER
IIOME LOCATIONS
26 0
0 48
0 0
0 0
0 44
0 0
26 92
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 3, 2023
SUBMITTED BY: Andrea Carey
Customer Service Manager
PROJECT: DIV. NO.All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Authorize the General Manager to Enter Into Agreements with
InfoSend and i3 Verticals, LLC for Billing and Online Payment
Services
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to enter into agreements
for the terms of two-years, plus three one-year extension options
with:
1)InfoSend to provide bill print and electronic bill presentment
services in an amount not to exceed $1,475,000 ($295,000
annually, includes average annual pass-through postage costs of
$195,000); and with
2)i3 Verticals, LLC to provide online payment transaction
processing services estimated to be $3,100,000 (approximately
$620,000 annually, amount based on 1% of total payments).
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Authorize the General Manager to enter into agreements with InfoSend
for bill print and electronic bill presentment services, and with i3
Verticals, LLC for payment transaction processing services.
AGENDA ITEM 6a
ANALYSIS:
The District generates approximately 53,500 bills each month (642,000
billings annually) for water and sewer services. Of these bills,
approximately 31,000 are mailed to customers every month, while the
remaining 22,500 bills are delivered electronically (e-bill). The
District receives over 30,000 payments monthly via the website.
InfoSend has been the District’s bill print provider since 2008 and
its online payment provider since 2010. In 2013, the District entered
into a five-year agreement with InfoSend to provide bill print,
mailing services, online bill presentment, and web payment services
to the District. This agreement was extended in 2018 for an
additional five-year term.
Over the past six months, staff has researched bill print and online
payment service providers. Utilizing the piggyback option in the
District’s Purchasing Policy, staff evaluated various other agencies’
request for proposals for similar services. Staff found the City of
Yuba recently completed formal RFP, which mirrored the District’s
requirements. Yuba received eight responses, and based on scores from
a set of evaluations criteria such as price, ability to meet all
requirements of the RFP, staffing qualifications, references, and
additional service offerings, Yuba chose four vendors to give
presentations. City staff narrowed the final evaluation down to two
vendors: InfoSend and OSG Connect. The evaluation team ultimately
chose InfoSend as they offered a more complete service package, had a
stronger support team, had more favorable references, and had
competitive pricing. The City of Yuba was happy with the service
InfoSend was already providing to the City. The cost of
implementation would be much lower as InfoSend was already the City’s
bill print and presentment vendor. The City of Yuba also agreed to
use InfoSend’s preferred payment processor, i3 Verticals, LLC.
Based on the City of Yuba’s RFP and contract, plus an evaluation of
the cost, complexity, and risk of changing bill print and online
payment processing services, staff recommends remaining with InfoSend
and entering into a new agreement. Since the size of the District is
larger than the City of Yuba, staff was able to negotiate reduced
pricing. For the new contract, InfoSend has increased the bill print
cost by .0135 cents per bill, or 11% (approximately $600 per month),
which is directly related to the increase in paper costs. In order to
ensure our pricing with InfoSend is competitive in current market
conditions, staff compared Otay’s pricing with other similarly sized
agencies who recently entered into contracts with InfoSend such as
the City of San Bernadino, City of Morgan Hills, and the City of
Oceanside. Staff found the District’s pricing was the lowest. It
should also be noted that 17 of the 24 San Diego County Water
Authority member agencies use InfoSend for bill print services.
Also weighing into the decision is the District’s plans to implement
a new utility billing software system in the next three years. As
part of that process, staff will be evaluating the online services
provided by the new system; therefore, staying with the same service
now avoids the potential cost of having to change billing vendors
again in only a few years.
For online payments, the cost for bill presentment is increasing
approximately $1,000 per month (10% overall); of which $74 is due to
increased maintenance fees, and the remainder being attributed to a
one cent increase per online customer, and a two cent increase per
payment transaction. This is the first price increase for online
services since our last contract extension in 2018 and includes an
upgrade to the existing online site. The upgraded site has additional
functionality such as the ability to choose Spanish as the preferred
language for the site, bill prints can automatically appear in Apple
or Google wallet, and one-time payees can see a copy of their last
bill and not just the amount due.
InfoSend’s preferred payment processor is i3 Verticals, LLC. The
payment processor verifies the credit card and banking information
for each transaction and then wires funds daily to the District’s
bank account. The District currently has a merchant agreement with
Electronic Payment Exchange (EPX) to provide these services, but
staff is recommending the District switch to i3 Verticals, LLC.
Although the service fee from EPX is 2 cents per payment less than i3
Verticals, the service standard from EPX has gone down considerably
over the past five years. As a preferred partner with i3 Verticals,
LLC there is additional functionality within the InfoSend customer
service portal which will save staff time with items such as returns
and voids, pulling payment reports, and researching payments. Based
on this, staff believes the additional $600 monthly cost (30,000
payments x $.02)from i3 Verticals, LLC will be offset by these staff
time savings.
The District has more than 30,000 customers paying in excess of $5.5
million monthly through InfoSend’s online site, which includes more
than 19,500 who have selected automatic pay. A transition from
InfoSend would result in these customers having to re-enroll in
electronic services. The staff time and inconvenience to the customer
would be great and most likely result in a drop-off in the number of
electronic payments and those customers receiving an electronic bill.
By continuing the relationship with InfoSend, the District’s
customers will not be subject to a change in their online accounts or
bill print delivery.
Given the complexity and sensitive nature of these services, it is
recommended that the General Manager enter into new agreements with
InfoSend and i3 Verticals, LLC for a term of two years, plus three
one-year extension options. After the initial two-year period, the
District will have the option not to renew should opportunities,
circumstances or business practices change. The agreements will run
concurrently and expire at the same time. Both companies allow the
District to terminate for cause at any time.
FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
The annual cost for InfoSend services will be increasing
approximately $7,200 annually to approximately $295,000 (includes
pass-through postage costs of $195,000) and for i3 Verticals, LLC
services it will be increasing approximately $12,000 annually to
approximately $620,000 or 1% of the total payments received. The
proposed FY 2024 budget is sufficient to cover these costs.
STRATEGIC GOAL:
Evaluate the most cost effective and efficient processes and tools to
communicate service related issues to customers.
LEGAL IMPACT:
None.
Attachments:
A) Committee Action
ATTACHMENT A
SUBJECT/PROJECT:
Authorize the General Manager to Enter Into Agreements with
InfoSend and i3 Verticals, LLC for Billing and Online
Payment Services
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this
item at a meeting held on April 19, 2023, and the following comments
were made:
• Staff indicated that InfoSend’s contract ends on June 30, 2023.
• As stated in the staff report, it was noted that 17 of the 24 San
Diego County Water Authority member agencies use InfoSend for
bill print services.
• In response to comments from the Committee, staff stated that the
District has utilized the piggyback procurement process in the
past resulting in additional savings to the District.
Upon completion of the discussion, the Committee supported
presentation to the full board as a Consent Item.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 3, 2023
PROJECT: Various DIV. NO. ALL
SUBMITTED BY: Adolfo Segura
Chief of Administrative Services
APPROVED BY: Jose Martinez, General Manager
SUBJECT: ADOPT RESOLUTION #4424 TO UPDATE BOARD POLICIES #34, STAFF
TRAVEL AND BUSINESS-RELATED EXPENSES POLICY”, AND #46, “MEDIA RELATIONS POLICY”
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution #4424 to update Board Policies #34, “Staff Travel and Business-Related Expenses Policy”, due to administrative language update and cleanup, and to revise from a Board policy to a Human Resources policy; and #46, “Media Relations Policy” due to minor language cleanup.
COMMITTEE ACTION:
See “Attachment A”.
PURPOSE:
To request that the Board adopt Resolution #4424 to update Board
Policies #34, “Staff Travel and Business-Related Expenses Policy”, due
to administrative language update and cleanup, and to revise from a
Board policy to a Human Resources policy; and #46, “Media Relations
Policy” due to minor language cleanup.
ANALYSIS:
The codification or organization of ordinances provides an essential
framework of operating laws for an agency to function. The District’s
code of ordinances contains forty-five (45) Board adopted policies that
AGENDA ITEM 6b
govern how the District operates. As a standard course of action, the
District periodically reviews and updates its Board policies as needed.
All departments are responsible for the periodic review of their
respective policies and procedures. This review is necessary to ensure
that District staff adhere to operating policies and procedures, and to
streamline business processes whenever possible.
Updates and revisions deemed appropriate at this time are detailed in
the attached strike-through versions of the policies (see Exhibits 1
and 2). The proposed changes mainly indicate a refinement of language.
Based on the above, it is recommended that the Board of Directors adopt
Resolution #4424 in support of the proposed revisions and updates.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None. STRATEGIC GOAL:
Operate the District in a financially sustainable and transparent
manner. LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report Attachment B – Resolution #4424
Exhibit 1 – Board Policy #34, “Staff Travel and Business-
Related Expenses Policy”
Exhibit 2 – Board Policy #46, “Media Relations Policy”
Attachment C - Recommended Updates/Revisions and Proposed Copy of Board
Policy #34, “Staff Travel and Business-Related Expenses
Policy”
Attachment D - Recommended Updates/Revisions and Proposed Copy of Board
Policy #46, “Media Relations Policy”
ATTACHMENT A
SUBJECT/PROJECT:
ADOPT RESOLUTION #4424 TO UPDATE BOARD POLICIES #34, STAFF TRAVEL AND BUSINESS-RELATED EXPENSES POLICY”, AND #46,
“MEDIA RELATIONS POLICY”
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 19, 2023, and the following comments were made:
• Staff provided the staff report to the Committee and noted
that policies and sections of the Code of Ordinances are
periodically updated with minor changes.
• In response to a question from the Committee, staff stated
that each department meets to discuss new policy procedures
and will determine the most appropriate way to communicate
changes to staff.
Upon completion of the discussion, the Committee supported
presentation to the full board as a Consent Item.
1
RESOLUTION NO. 4424
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT TO REVISE
BOARD POLICIES #34, “STAFF TRAVEL AND BUSINESS-
RELATED EXPENSES POLICY”, AND
#46, “MEDIA RELATIONS POLICY”
WHEREAS, the Board of Directors of Otay Water District have
established policies, procedures, ordinances, and resolutions
for the efficient operation of the District; and WHEREAS, it is
the policy of the District to establish procedures to review
policies, procedures, ordinances, and resolutions periodically
to ensure they are current and relevant; and
WHEREAS, District staff has identified Board Policy #34,
“Staff Travel and Business-Related Expenses Policy”, and #46,
“Media Relations Policy” as requiring updates as per the
attached strike-through copies.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors
of the Otay Water District amend the Board Policy indicated
above in the form presented to the Board at this meeting.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
the Otay Water District at a regular meeting held this 3rd of
May 2023.
__________________________
Board President
ATTEST:
___________________________
District Secretary
ATTACHMENT B
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 11 ofof 99
PURPOSEPURPOSE
To provide guidelines for compensation and the advancement and
reimbursement of expenses when work duties require Otay Water
District (“District”) Staff (“Staff”)to conduct District business
away from their regular work site(s) and outside of San Diego
County.
BACKGROUND
Employees of the District are called upon to travel or conduct
business related meetings, conferences, training or functions
away from their regular work site(s) and outside of San Diego
County, in conjunction with their job functions. Federal and
State laws permit and provide guidance for reimbursement of
expenses and compensation to employees while traveling out of San
Diego County on District business.
POLICY
The District will reimburse Staff for reasonable expenses
incurred while out of San Diego County at District business
related meetings, functions, conferences, training or traveling
on District business, including lodging, meals, transportation,
and related incidentals. The District will compensate non-exempt
employees while traveling in accordance with District policy,
applicable Memorandums of Understanding (“MOUs”), and federal and
state laws.
PROCEDURES
A.Advances and Pre-payment of Otherwise Reimbursable Expenses
Employees may request pre-payment of registration,
transportation, and lodging, and may request an advance upon
expected costs for meals, fuel for District or rental
vehicles, public ground transportation, and taxis using the
“Staff Travel Authorization Request” form (Exhibit A). Pre-
payments and advances shall be limited to the employee’s
expenses only. Advances for per diem meals shall not exceed
the per diem allowance anticipated for the trip plus known
costs of ground transportation. Advances should be requested
in a timely manner to allow normal processing through
accounts payable.
EXHIBIT 1
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 22 ofof 99
B.Reimbursement of Expenses
Each employee shall be reimbursed for travel expenses
incurred while at authorized District business related
meetings, functions, conferences, or training outside of San
Diego County as follows:
1. Accountability
Travel Expenses shall be budgeted by Staff as a part of
the annual budget process. Any travel expenses approved
with the budget shall be considered authorized for that
fiscal year only. Travel expenses included in Capital
Improvements Program (“CIP”) budgets are also
considered authorized. Before the District expends any
funds for authorized travel that involves lodging or
public transportation expenses, the employee must
complete a “Staff Travel Authorization Request” form
(Exhibit A). The employee’s Department Chief shall
approve the authorization form. When a Department Chief
is traveling, the Assistant General Manager shall
approve the authorization form.
2. Transportation
The District will pay for reasonable transportation
costs. Employees should endeavor to use the most
appropriate mode of transportation given the purpose
and nature of the trip. If for personal preference or
for non-business related reasons the employee incurs
additional travel expenses, the employee will be
responsible for the additional expenses.
a. Air Transportation
The District will reimburse employees or pre-pay
costs for economy (coach) class airfares. The
District will endeavor to purchase airline tickets
in advance, taking advantage of discounts and low
airfares. Whenever possible, airline reservations
shall be made to permit travel during normal
business hours.
b. Automobile
1. District Vehicle: Whenever travel by vehicle
is most cost effective or practical, Staff
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 33 ofof 99
shall endeavor to use a District vehicle.
Staff must have a valid California driver’s
license to operate a District vehicle. The
District will reimburse employees for
gasoline purchases with receipts while using
a District vehicle; however, employees should
ensure that the vehicle has sufficient fuel
to reach the desired destination and return,
or a full tank of fuel, before departing from
the District offices. Employees must comply
with the provisions of Board of Directors
Policy No. 14, “Use of District Vehicles and
Car Allowance” whenever an employee chooses
to use a District vehicle while traveling.
2. Personal Vehicle: Employees must obtain
permission from their Department Chief before
using a personal vehicle in conjunction with
District business.
In situations where an employee uses a
personal vehicle on District business, the
employee must maintain a valid California
Driver’s License and at least the minimum
automobile insurance coverage required by the
State of California, or make arrangements for
a driver who meets the above requirements.
Administrative Services Staff will verify
that the employee has a valid California
driver’s license. Employees may not use a
personal vehicle that is not insured
according to the policy. Employees shall
attest to meeting the license and insurance
requirements by completing an “Authorization
to Drive a Privately Owned Vehicle on
District Business” form upon hire or as
required.
If a personal vehicle is used, the employee
will be reimbursed at the current maximum
allowable tax-exempt reimbursement rate
provided by the IRS.
Employees who receive a monthly mileage
allowance are not eligible to receive
reimbursement for mileage.
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 44 ofof 99
3. Rental Cars: The District will cover the
expenses required for use of a rental car on
District business. The maximum reimbursement
for rental cars shall be based on the rate
provided for a standard mid-sized car, unless
there is a clear business need and it is
approved by the General Manager or designee.
Upgrades or additional cost features are the
employee’s responsibility.
c. Miscellaneous Transportation
Whenever practicable, bus, taxi, rail, shuttle,
etc. transportation may be used in lieu of, or in
conjunction with, the modes listed above.
3. Meals and Lodging
a. Meals and Beverages
Whenever travel outside of San Diego County
requires meals, an employee may receive the per
diem allowance at the current Meal and Incidental
Expenses (“M&IE”) rate for San Diego as determined
by the U.S. General Services Administration.
1. Per diem:
a. Full Day Allowance
When an employee is traveling for a full day
and no meals are provided by other sources,
such as pre-paid registration, the per diem
meal allowance shall be at the current
Domestic Per Diem Rate for M&IE , or an amount
that the General Manager deems reasonable for
the occasion or circumstances. Taxes and
gratuities are inclusive.
b. Single Meal Allowance
When an employee requires an allowance for a
single meal while traveling, the per diem
meal allowance shall be at the M&IE rate for
breakfast, lunch, or dinner as determined by
the U.S. General Services Administration, or
amounts that the General Manager deems
reasonable for the occasion or circumstances.
Taxes and gratuities are inclusive.
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 55 ofof 99
c. Partial Day Allowance
When an employee will be traveling for a
partial day or where a single meal is
provided for by other sources such as pre-
paid registration, the per diem allowance
amount shall be at the M&IE rate for
breakfast, lunch, or dinner as determined by
the U.S. General Services Administration, or
amounts that the General Manager deems
reasonable for the occasion or circumstances.
d. Receipts do not have to be submitted for per
diem allowances.
b. Lodging
The District will reimburse employees or pre-pay
accommodations in single rooms at conference
facilities or in close proximity when applicable.
In the absence of conference accommodations,
normal single-room business, government or
commercial class accommodation may be obtained.
Under normal circumstances, lodging will not be
reimbursed for the night before a conference
starts or the night after it ends. However, in
situations where available travel schedules would
require the employee to leave home before 6:00 AM
or return home after 12:00 AM, lodging for the
night before or the night after will be
reimbursable. With prior supervisory approval, if
staying overnight, an extra night or over a
weekend at a destination allows for a reduction of
travel expenses, and the cost of accommodations is
less than the savings realized by the documented
reduced transportation expenses, the District may
pre-pay or reimburse the employee for the extra
night’s lodging. Only lodging expenses will be
reimbursed in these situations.
4. Entertainment
The District will not cover expenses incurred for
recreation or entertainment.
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 66 ofof 99
5. Incidental Expenses
Unavoidable, necessary and reasonable authorized
expenses will be fully reimbursed by the District. Some
examples of allowable expenses are:
a. Telephone Calls (Business): Calls placed by the
employee to the District office or for the purpose
of conducting District business. Business related
calls should be itemized on the “Staff Expense
Claim Form” (Exhibit B).
b. Telephone Calls (Personal): One (1) brief
personal call each day away from home, up to a $10
maximum per day.
c. Telephone Calls (Local): Charges for local calls,
for meal or transportation reservations, or for
area information related to travel.
d. Reasonable transportation to local restaurants and
to optional functions that are a part of
conference events.
e. Reasonable gratuities.
f. Parking fees.
g. The following expenses are not reimbursable:
1. Alcoholic beverages;
2. Parking or traffic violations;
3. In-room movies;
4. Laundry service; and
5. Expenses incurred by spouses, family members,
or guests.
6. Compensation for Non-Exempt employees
Non-exempt employees traveling and staying overnight
are normally authorized to work only the total number
of hours they were regularly scheduled to work,
exclusive of applicable travel time. However, all
employees traveling and staying overnight are
considered by the District to be on flexible schedules.
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 77 ofof 99
During flexible schedules, employees’ starting time,
meal period, rest periods, etc. are adjusted to
accomplish work with minimal overtime.
Should business require a non-exempt employee to
travel, function attendance and travel hours are
compensable pursuant to state law. These hours are
considered regular work hours for purposes of
calculating overtime. During all compensable hours, an
employee is subject to any and all provisions of
District Policies and Procedures.
The following hours are compensable:
a. Actual hours spent at meetings, conferences, or
functions, excepting meals and special events of
an entertainment nature held in conjunction with a
function.
b. Actual hours spent in transit, excepting hours
spent in travel between the employee’s residence
and the District. Any time spent in layover at a
public transportation facility is also compensable
as transit time, unless the employee chooses to
participate in recreational activities during the
layover.
On the other hand, time spent taking a break from
travel in order to eat a meal, sleep or engage in other
personal pursuits not connected with traveling or
making necessary travel connections, such as
sightseeing, visiting friends and family, or other
activites of a recreational or entertainment nature,
are not compensable.
7. Employees’ Responsibility
a. In situations where an employee can use the Petty
Cash procedures for reimbursement of travel
expenses, the employee may submit a “Petty Cash
Order” form (Exhibit B) to be reimbursed. If
expenses to be reimbursed are beyond the scope of
the Petty Cash procedures, employees must submit a
detailed “Staff Expense Claim Form” (Exhibit C).
Petty Cash Orders and Expense Claim Forms should
be supported by vouchers and itemized receipts of
expenditures for which reimbursement is being
requested. Receipts must be attached for all
OTAYOTAY WATERWATER DISTRICTDISTRICT
BOARDBOARD OFOF DIRECTORSDIRECTORS POLICYPOLICY
SubjectSubject PolicyPolicy
NumberNumber
DateDate
AdoptedAdopted
DateDate
RevisedRevised
STAFF TRAVEL AND BUSINESS RELATED
EXPENSES POLICY 34 05/03/00 10/05/11
PagePage 88 ofof 99
expenses with the exception of per diem meal
allowance. If a receipt required for
reimbursement is lost, the lost receipt must be
noted on the “Staff Expense Claim Form” and
approved for reimbursement before any payment can
be made. Claim forms must be submitted within 14
calendar days after the expense was incurred.
b. Expenses will not be reimbursed for meetings that
have been pre-paid and not attended. Employees may
be required to reimburse the District for any pre-
paid expenses for any unexcused absence. The
General Manager will determine if an absence from
a pre-paid meeting is excused or unexcused.
c. When two (2) or more employees combine an expense
on one receipt, the employee requesting
reimbursement should indicate on the “Staff
Expense Claim Form” the identity of the other
persons sharing expenses.
d. Expenses incurred by spouses, family members, or
guests are the responsibility of the employee.
e. Any misrepresentation in connection with the petty
cash order or reimbursement process will be
grounds for discipline up to and including
termination of employment.
Attachments
Exhibit A: “Staff Travel Authorization Request”
Exhibit B: “Petty Cash Order”
Exhibit C: “Staff Expense Claim Form”
EXHIBITEXHIBIT AA
OTAY WATER DISTRICT
STAFF TRAVEL AUTHORIZATION REQUEST
Employee Name: Date of Request:
Name and Location of Function:
Is Travel out of San Diego County? Yes No* (*not eligible for staff travel)
Note: If you will be driving a District vehicle out of San Diego County or driving non-
District personnel in a District vehicle or your private vehicle, you must obtain
authorization by completing the “Vehicle Use Authorization Form Out of County and Transport
Non-District Personnel” form.
Date(s) function to be held: -
Purpose of function:
Sponsoring Organization:
Request for Pre-Payment or Advance of Fees Related to the Function:
Expense Type Not Needed
Pre-Payment
Requested
Advance
Requested
Registration $ N/A
Airline $ N/A
Auto Rental $ N/A
Fuel – for District or Rental Cars only**N/A $
Taxi / Shuttle**N/A $
Lodging $ N/A
Meals – See Below N/A $
Other Expenses – Explain Below $ $
(**Advanced through petty cash. Please
request these expenses at the conclusion
of the trip if
Total Pre-Payment Requested:
possible.)Total Advance Requested:
Lodging Preference:
Explanation of Other Expenses:
MEALS CALCULATOR
Personal funds may be used in lieu of requesting advancement for meals. Meal per diem amounts are the same regardless of travel destination out of the County.
How many meals does the function provide? (do not include in calculation below)
( x $36 = $ ) + ( x $18 = $ ) + ( x $12 = $ ) = $
Expected Expected Expected Total meal
dinners lunches breakfasts advancement
Employee Signature Date of Request
(Staff Expense Claim form must be completed within 14 calendar days after return from travel.)
For Office Use Only Below This Line
Total Pre-Paid: $Total Advanced: $
Travel Approved by:Date:
Rev. 9/11
EXHIBITEXHIBIT AA
INSTRUCTIONS FOR PREPARATION OF
STAFF TRAVEL AUTHORIZATION REQUEST FORM
The District will reimburse for necessary expenses incurred while traveling outside of San Diego County at District business
and related meetings, functions, training or traveling on District business including common carrier fares (economy class),
automobile rental charges, District business telephone calls, one personal telephone call home each day ($10 maximum per
day), lodging, baggage handling, parking fees, meals, gratuities, etc. Please review the “Staff Travel and Business Related
Expenses Policy” to familiarize yourself with the District’s requirements.
Transportation
Employees should endeavor to use the most appropriate mode of transportation given the purpose and nature of the trip.
The District will reimburse or pre-pay costs for economy (coach) class air transportation. Employees must obtain
permission from their Department Chief or AGM before using a personal vehicle in conjunction with District business
and complete the “Vehicle Use Authorization Form Out of County and Transport Non-District Personnel” form.
Advances and Pre-payments
Employees may request pre-payment of registration, transportation, and lodging, and may request an advance for
expected costs for meals, fuel for District or rental vehicles, public ground transportation, and taxis using the “Staff
Travel Authorization Request” form. It is recommended that expenses for fuel, taxi and shuttle be reimbursed at the
conclusion of the trip if possible.
Pre-paymentsPre-payments andand advancesadvances shallshall bebe limitedlimited toto thethe employee’semployee’s expensesexpenses only.only. AdvancesAdvances shouldshould bebe
requestedrequested inin aa timelytimely mannermanner toto allowallow normalnormal processingprocessing throughthrough accountsaccounts payable.payable.
Meals
Advances for per diem meals shall not exceed the per diem allowance anticipated for the trip. Receipts should not be
submitted for per diem meal allowances. If advancement for meal allowance is not requested, employee may use their
personal funds to pay for meals and request the per diem allowance after the travel is completed by submitting the “Staff
Expense Claim Form.” It is recommended that per diems for meals be reimbursed at the conclusion of the trip if
possible. CalCard may not be used for meal per diems.
Per diem meal allowance shall be at the Meals Incidental Expenses (“M&IE”) rate determined by the U.S. General
Services Administration for San Diego, or amounts that the General Manager deems reasonable for the occasion or
circumstances. Partial day's per diem allowance shall be at the M&IE rate for breakfast, lunch and dinner, or amounts that
the General Manager deems reasonable for the occasion or circumstances. The per diem meal allowance is inclusive of
and assumes expenses for taxes and gratuities. Where pre-paid registration includes meals, only meals that are not
included in the registration will be provided as per diem meal allowance.
Receipts
Receipts must be attached for all expenses with the exception of per diem meal allowances. If a receipt required for
reimbursement is lost, the lost receipt should be noted next to the expense, submitted to the Department Chief, and
approved by the Department Chief before any reimbursement can be made. All receipts must have the nature of the
expense and the business purpose noted on the receipt. Any receipts that include costs of personal travel (e.g., hotel
receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room
rate as opposed to double room rate).
Staff Expense Claim Form
Upon return from travel, if expenses were incurred that need to be reimbursed, the “Staff Expense Claim Form” must be
submitted within 14 calendar days after the expense was incurred. Advances and pre-payments shall be deducted from
expenses and reconciled with travel authorization forms where applicable.
Department Chiefs, Assistant General Mangers or the General Manager may authorize Travel Authorization Request Forms.
No information on the “Staff Travel Authorization Request Form” may be designated as confidential in nature. All
expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses, family members, or guests
The Staff Travel Policy does not apply to meetings, conferences, training or functions attended in the County of San Diego.
For expenses in the County of San Diego please coordinate reimbursements with your department.
Rev. 9/11
EXHIBIT B
PETTY CASH ORDER
DATE
NAME
DEPT
REQUEST REIMBURSEMENT FOR THE FOLLOWING EXPENSES:
Project Subproject Activity Cost
Type DESCRIPTION AMOUNT
Total:0.00
PURPOSE OF EXPENDITURES
DEPARTMENTAL APPROVAL
CASH RECEIVED BY DATE
NOTE: RECEIPTS MUST BE ATTACHED. FORM IS NOT TO BE USED
FOR OVERNIGHT TRAVEL.
EXHIBIT C
OTAY WATER DISTRICT
STAFF EXPENSE CLAIM FORM
VendorVendor #:#: ______________________________________Date:Date: ________________________________________________________________
Pay to: Period Covered:
Employee Number From:To:
ITEMIZED REIMBURSEMENTS CLAIMED
(Attach receipts for all expenses, except for per diem meal and beverage allowances.)
DATE
DESCRIPTION OF
REIMBURSEMENT
TOTAL
REIMBURSABLE
AMOUNT
LESS
AMOUNT
PREPAID
LESS
AMOUNT
ADVANCED
TOTAL
AMOUNT
CLAIMED
ACCOUNTACCOUNT CODINGS:CODINGS: ProjectProject SubprojectSubproject ActivityActivity CodeCode CostCost TypeType DepartmentDepartment
1)1)
2)2)
3)3)
4)4)
For Travel Reimbursements:
Nature of Travel:Date Travel Commenced
Destination: Date Travel Terminated
Total Mileage Claimed =Miles x $. Rate = $
Total Reimbursements Claimed:$
Employee Signature Date
Approved by Date
Rev. 4/10
EXHIBIT C
INSTRUCTIONS FOR PREPARATION OF
STAFF EXPENSE CLAIM FORM
The necessary expenses incurred while traveling outside of San Diego County at
District business related meetings, functions, training or traveling on
District business including common carrier fares (economy class), automobile
rental charges, District business telephone calls, one personal telephone call
home each day ($10 maximum per day), lodging, baggage handling, parking fees,
meals, gratuities, etc. will be reimbursed when documented on the Staff Expense
Claim Forms. Receipts must be attached for all expenses with the exception of
per diem meal allowances. If a receipt required for reimbursement is lost, the
lost receipt should be noted next to the expense, submitted to the
DepartmentChief, and approved by the Department Chief before any reimbursement
can be made. All receipts must have the nature of the expense and the business
purpose noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken in
conjunction with travel on official business. Per diem meal allowance shall be
at the rate provided by the Meals Incidental Expenses (M&IE), or amounts that
the General Manager deems reasonable for the occasion or circumstances. Partial
day's per diem allowance shall be at the rate provided by M&IE for breakfast,
lunch and dinner, or amounts that the General Manager deems reasonable for the
occasion or circumstances. The per diem meal allowance is inclusive of and
assumes expenses for taxes and gratuities of up to 15%. Where pre-paid
registration includes meals, only meals that are not included in the registration
will be provided as per diem meal allowance.
Any receipts that include costs of personal travel (e.g., hotel receipt for
employee and spouse) should identify what the cost would have been without
personal travel (e.g., single room rate as opposed to double room rate).
Mileage will be reimbursed for travel using personal vehicles only if a District
vehicle is not available. In order to be reimbursed for mileage, employees must
have a valid Driver’s License and current automobile insurance that meets or
exceeds State minimum insurance requirements.
Advances and pre-payments shall be deducted from expenses and reconciled with
travel authorization forms where applicable.
Department Chiefs or the General Manager may authorize Expense Claim Forms.
Claim forms must be submitted within 14 calendar days after the expense was
incurred.
No information on the Expense Claim Form may be designated as confidential in
nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses, family
members, or guests.
g. Meetings, conferences, training or
functions attended in the County of San
Diego.
Rev. 9/11
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
MEDIA RELATIONS POLICY 46 09/01/04 05/01/19
Page 1 of 4
PURPOSE
To establish procedures to better inform the public, Otay Water
District (District) customers, businesses and other stakeholders
on water, sewer, and recycled water service, and other District-
related matters by engaging in a defined and proactive media
relations program.
BACKGROUND
The District recognizes an effective and quick way to communicate
District policies and activities is by working in partnership with
the news media. This policy requires that news media inquiries
regarding the District and the District’s position on matters
should be given high priority, and should be responded to as
quickly and efficiently as possible. Every effort should be made
to reasonably meet media deadlines and to ensure that all
information released is accurate and is in compliance with laws
and regulations concerning individual privacy and confidentiality.
POLICY
The General Manager’s office is responsible for the District's
media relations program. To assist with this critical function,
the District may retain media relations assistance to provide
public, community and governmental relations services.
All District employees should notify the General Manager, their
department’s Chief or the General Manager’s Communications
Officer about media inquiries. With regard to District media
requests, the media representative shall contact the General
Manager and/or the Communications Officer who is authorized to
speak on behalf of the District. Because the media often work on
deadlines, all departments should respond as soon as reasonably
possible when the General Manager requests department information
or a spokesperson for the media. Specific guidelines for
responding to media requests regarding the District’s position on
matters are as follow:
DISTRICT SPOKESPERSONS
Unless otherwise authorized, the District's only designated
spokespersons to speak on behalf of the District are:
President of the Board of Directors or Board members assigned
EXHIBIT 2
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
MEDIA RELATIONS POLICY 46 09/01/04 05/01/19
Page 2 of 4
General Manager
Designees authorized by General Manager as noted by General
Manager’s memo.
MEDIA INQUIRIES
Any media inquiry received by other District staff regarding the
District or the District’s position on a matter should be referred
immediately to the General Manager through the Department Chief.
An appropriate response to the media is: "I'm sorry; I don't have
the full information regarding that matter. I will give your
request to District management, and someone from the District will
respond to you as soon as they are available."
Any staff member should obtain the reporter's name, phone number
or cell phone number, topic of the story and deadline. Staff in
the General Manager’s office will make all reasonable efforts to
coordinate a response with the General Manager and appropriate
District staff.
LITIGATION, PERSONNEL AND DISTRICT ELECTION ISSUES
Generally, the business conducted by the District is public, and
therefore, is public information. Inquiries regarding pending
litigation, matters involving a significant exposure to
litigation, certain personnel related information and District
election information are exceptions.
Inquiries regarding pending litigation or exposure to litigation
and District election issues should be referred to the General
Manager’s office.
GENERAL OR ROUTINE ISSUES
Calls from media should always be referred immediately to the
General Manager’s office through the employee's Department Chief
or supervisor. The General Manager’s office will coordinate a
response, including designating a spokesperson.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
MEDIA RELATIONS POLICY 46 09/01/04 05/01/19
Page 3 of 4
When the General Manager has designated a spokesperson to respond
to specific questions from the media, the General Manager should
be informed of the topic, the name of the reporter and the
proposed date of airing or publication, either before or
immediately following these interviews.
DISTRICT-INITIATED INFORMATION
The District also makes its own efforts to get in touch with the
media. For the most part, this proactive media contact is
initiated through the General Manager’s office. This includes
issuing press releases and media advisories, and making personal
contacts with reporters and editors for stories and other
coverage. Departments seeking publicity for events or activities
should contact the Communications Officer in the General Manager’s
office as soon as possible to ensure the best media coverage of
their activities.
Department staff members shall not initiate news media contacts on
behalf of the District before notifying the General Manager or
Department Chief.
CRISIS MANAGEMENT AND EMERGENCY/SERVICE OUTAGE ISSUES
Because the Operations Department may be called upon to restore
service due to outages, breakages or in other critical situations,
their work is fundamental to the overall mission of the District.
As a result, Operations personnel may be the only staff at the
scene of an incident and may be called upon to address service
restoration questions by the media.
In these situations, all such inquires will be immediately
referred to the Chief of Operations who will make every effort to
ensure that all information released is accurate, relevant, and
appropriate. Operations staff should notify the Chief of
Operations immediately of any such media inquiry. The Chief of
Operations will then take the lead for follow-up media
communications and contact the General Manager and
Communications Officer.
Any media calls to other District staff regarding Operations
matters should be referred immediately to the Chief of Operations,
and General Manager’s Communications Officer. All information
released directly to the media by Operations should be provided
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
MEDIA RELATIONS POLICY 46 09/01/04 05/01/19
Page 4 of 4
immediately to the General Manager's Communications Officer.
During a crisis or major emergency, the District’s Standardized
Emergency Management Plan Section 5.1-1 assigns responsibilities
and procedures for handling media and customer information.
To manage a crisis or a major emergency that may or may not
consist of a service outage, the Communications Officer will
work with the General Manager and designated Department Chiefs
to assess if the situation requires outside services to assist
with and/or manage the crisis. Each situation is unique and will
be discussed on an as-needed basis.
CONCLUSION
Nothing in this policy should be construed as to restrict or
preclude an employee of the District or a representative of the
Otay Water District Employee Association (OWDEA) or other
bargaining unit from communicating with the press on matters of
public concern or on matters related to association and/or union
activities. However, such communications should not be made
during duty-time, nor be disruptive to the District’s operations,
and should be clearly understood as not being made on behalf of
the District or representing the District’s official position on
such matters
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000 10/5/11
4/5/2023
Page 1 of 9
Purpose
To provide guidelines for compensation, and the advancement, and
reimbursement of expenses when work duties require Otay Water
District (“District”) sStaff (“Staff”)to conduct District business
away from their regular work site(s) and outside of San Diego
County.
Background
Employees of the District staff are called upon to travel or
conduct business- related meetings, conferences, training, or
functions away from their regular work site(s) and outside of San
Diego County, in conjunction with their job functions. Federal and
State laws permit and provide guidance for reimbursement of
expenses and compensation to staffemployees while traveling
outside of San Diego County on District business.
Policy
The District will reimburse sStaff for reasonable expenses
incurred while outside of San Diego County attendingat District
business- related meetings, functions, conferences, training, or
while traveling on District business, including lodging, meals,
transportation, and related incidentals. The District will
compensate non-exempt staffemployees while traveling in accordance
with District policy, applicable Memorandums of Understanding
(“MOUs”), and federal and state laws.
Procedures
A.Pre-approval of Travel Arrangements
Staff’sThe employee’s Department Chief and General Manager
shall approve the authorization“Staff Travel Authorization
Request” form prior to making any travel arrangements. When a
Department Chief is traveling, the Assistant General Manager
shall approve the authorization form.
A.
B.Advances and Pre-Ppayment of Otherwise Reimbursable Expenses
B.
ATTACHMENT C
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
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Every effort shall be made to process payments using District
funds or District credit card. StaffEmployees may request pre-
payment of registration, transportation, and lodging, and may
request an advance upon expected costs for meals, gasolinefuel
for District or rental vehicles, public ground transportation,
and taxis, or ride-sharing service using the “Staff Travel
Authorization Request” form (Exhibit A). Pre-payments and
advances shall be limited to the staffemployee’s expenses only.
Advances for per diem meals shall not exceed the per diem
allowance anticipated for the trip plus known costs of ground
transportation. Advances shallshould be requested in a timely
manner to allow normal processing through Aaccounts Ppayable.
C. Reimbursement of Expenses
StaffEach employee shall be reimbursed for travel expenses
incurred while at authorized District business- related
meetings, functions, conferences, or training outside of San
Diego County as follows:
1. Accountability
Travel eExpenses shall be budgeted by sStaff as a part of
the annual budget process. Any travel expenses approved
with the budget shall be considered authorized for that
fiscal year only. Travel expenses included in Capital
Improvements Program (“CIP”) budgets are also considered
authorized. Before the District expends any funds for
authorized travel that involves lodging or public
transportation expenses, staffthe employee must complete a
“Staff Travel Authorization Request” form (Exhibit A). The
employee’s Department Chief and General Manager shall
approve the authorization form. When a Department Chief is
traveling, the Assistant General Manager shall approve the
authorization form.
2. Transportation
The District will pay for reasonable transportation costs.
StaffEmployees shallshould endeavor to use the most
appropriate mode of transportation given the purpose and
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
4/5/2023
10/5/11
Page 3 of 9
nature of the trip. If for personal preference or for non-
-business- related reasons staffthe employee incurs
additional travel expenses, theythe employee will be
responsible for the additional expenses.
a.Air Transportation
a.
The District will reimburse staffemployees or pre-pay
costs for economy (coach) class airfares. The District
will endeavor to purchase airline tickets in advance,
taking advantage of discounts and low airfares.
Whenever possible, airline reservations shall be made
to permit travel during normal business hours. Every
effort shall be made to ensure travel arrangements
coincide with the start of the conference, training,
or professional function.
b.Automobile
b.
i.District Vehicle: Whenever travel by vehicle is
most cost- effective or practical, sStaff shall
endeavor to use a District vehicle. Staff must have
a valid California driver’s license to operate a
District vehicle. The District will reimburse
staffemployees for gasoline purchases with receipts
while using a District vehicle; however, employees
staff should ensure that the vehicle has sufficient
gasolinefuel to reach the desired destination and
return, or a full tank of gasolinefuel, before
departing from the District offices. Staff who are
assigned a District vehicle may also use a District
credit card to purchase gasoline. Employees Staff
must comply with the provisions of Board of Directors
Policy No. 14, “Use of District Vehicles and Car
Allowance” whenever theyan employee chooses to use
a District vehicle while traveling.
If staff will be driving a District or private
vehicle outside of San Diego County on District
business, or will be transporting non-District
staff (excludes contractors/consultants) in a
District or private vehicle while conducting
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
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10/5/11
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District business, then they must obtain advanced
approval from the Department Chief by completing
the “Authorization to Drive A District or Private
Vehicle Out of San Diego County or to Transport Non-
District Staff in a District or Private Vehicle”
form.
i.
ii.Personal Vehicle: Employees must obtain permission
from their Department Chief before using a personal
vehicle in conjunction with District business.
ii.In situations where staffan employee uses a
personal vehicle foron District business, theythe
employee must shall attest upon hire or as
required, to meeting the California license and
minimum automobile insurance requirements,
maintain a valid California Driver’s License and at
least the minimum automobile insurance coverage
required by the State of California, or must make
arrangements for a driver who meets the above
requirements. Human Resources Administrative
Services staff Staff will ensure employees
maintainverify that the employee has a valid
California driver’s license. StaffEmployees may not
use a personal vehicle that is not insured
according to thise policy. Employees shall attest
to meeting the license and insurance requirements
by completing an “Drive a Privately Owned Vehicle
on District Business” form upon hire or as
required.
If a personal vehicle is used, staffthe employee
will be reimbursed for mileage at the current
maximum allowable tax-exempt reimbursement rate
provided by the IRS.
StaffEmployees who receive a monthly carmileage
allowance are not eligible to receive reimbursement
for mileage nor will they be reimbursed for use of
other forms of transportation (e.g., ride-sharing
service) within the County.
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
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10/5/11
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iii.Rental Cars: Staff shall endeavor to use public
transportation, taxi, or a ride-sharing service
whenever possible. In the event that a rental car
is needed for District business, Tthe District
will cover the expenses, required for use of a
rental car on District businessincluding gasoline.
The maximum reimbursement for rental cars shall be
based on the rate provided for a standard mid-sized
car, unless there is a clear business need and it
is approved by the General Manager or designee.
Rentals for the use of recreation or sightseeing,
and Upgrades or additional cost features, such as
upgrades, are the staffemployee’s responsibility.
c.Miscellaneous Transportation
c.
Whenever practicable, bus, taxi, rail, shuttle, or
ride-sharing serviceetc. transportation may be used in
lieu of, or in conjunction with, the modes listed
above, unless staff receives a monthly car allowance.
3. Meals and Lodging
a.Meals and Beverages
a.
Whenever travel outside of San Diego County requires
meals, staffan employee may receive the per diem
allowance at the current Meal and Incidental Expenses
(“M&IE”) rate for San Diego as determined by the U.S.
General Services Administration.
i.1.Per diem:
a.Full Day Allowance
When staffan employee is traveling for a full
day and no meals are provided by other sources,
such as pre-paid registration, the per diem meal
allowance shall be at the current Domestic Per Diem
Rate for M&IE, or an amount that the General
Manager deems reasonable for the occasion or
circumstances. T(taxes and gratuities are
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
4/5/2023
10/5/11
Page 6 of 9
inclusive).
b. Single Meal Allowance
When staffan employee requires an allowance for
a single meal while traveling, the per diem meal
allowance shall be at the current Domestic Per
Diem Rate for M&IE rate for breakfast, lunch,
or dinner as determined by the U.S. General
Services Administration, or amounts that the
General Manager deems reasonable for the
occasion or circumstances. (Ttaxes and
gratuities are inclusive).
c. Partial Day Allowance
When staffan employee will be traveling for a
partial day or where a single meal is provided
for by other sources such as pre-paid
registration, the per diem meal allowance
amount shall be at the current Domestic Per Diem
Rate for M&IE rate for breakfast, lunch, or
dinner as determined by the U.S. General
Services Administration, or amounts that the
General Manager deems reasonable for the
occasion or circumstances.
d. Receipts do not have to be submitted for per
diem allowances.
b. Lodging
The District will pre-pay or reimburse staffemployees
or pre-payfor accommodations in single occupancy rooms
at conference facilities, or within close proximity
when applicable. In the absence of conference facility
accommodations, normal single-room occupancy for
business, government, or commercial class
accommodation may be obtained. Under normal
circumstances, lLodging will onlynot be reimbursed for
the night before a conference starts or the night after
it ends . However, in situations where availableif
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
4/5/2023
10/5/11
Page 7 of 9
travel schedules would require staffthe employee to
leave home before 6:00 AM or return home after 12:00
AM, lodging for the night before or the night after
will be reimbursable. With prior supervisory approval,
if staying overnight, an extra night or over a weekend
at a destination allows for a reduction of travel
expenses, and the cost of accommodations is less than
the savings realized by the documented reduced
transportation expenses, the District may pre-pay or
reimburse staffthe employee for the extra night’s
lodging. Only lodging expenses will be reimbursed in
these situations.
4.Entertainment
4.
The District will not cover expenses incurred for
recreation or entertainment.
5.Incidental Expenses
Unavoidable, necessary, and reasonable authorized expenses
will be fully reimbursed by the District. Some examples of
allowable expenses are:
a. Telephone Calls (Business): Calls placed by
the employee to the District office or for the
purpose of conducting District business. Business
related calls should be itemized on the “Staff
Expense Claim Form” (Exhibit B).
b.Telephone Calls (Personal): One (1) brief personal call each
day away from home, up to a $10 maximum per day.
c.Telephone Calls (Local): Charges for local calls, for meal
or transportation reservations, or for area information related to
travel.
a.Reasonable transportation to local restaurants and to
optional functions that are a part of conference
events.
d.
b.Reasonable gratuities.
e.
f.c. Conference or hotel pParking fees.
g.
Commented [JD1]: In June 2018, the Board approved updates
to Board Policy #8. The changes to section 5 also apply to Policy
#34. When the Board made the change to Policy #8, they indicated
that it is old language, since everyone now has cell phones and that
the District should not be paying $10 for a phone call. On 8/16/18,
the HR Manager asked staff to make the changes and save them for
the next time significant revisions to this policy are made (current
update).
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
4/5/2023
10/5/11
Page 8 of 9
d.The following expenses are not reimbursable:
h.
i.Alcoholic beverages;
ii. Parking or traffic violations;
iii. In-room movies;
iv. Laundry service; and
v.Expenses incurred by spouses, family members, or
guests.
6. Compensation for Non-Exempt Staffemployees
Non-exempt staffemployees traveling and staying overnight
are normally authorized to work only the total number of
hours they were regularly scheduled to work, exclusive of
applicable travel time. However, all staffemployees
traveling and staying overnight are considered by the
District to be on flexible schedules.
During flexible schedules, staffemployees’s starting time,
meal period, rest periods, etc. are adjusted to accomplish
work with minimal overtime, if any.
Should business require a non-exempt staffemployee to
travel, function attendance and travel hours are
compensable pursuant to state law. These hours are
considered regular work hours for purposes of calculating
overtime. During all compensable hours, staffan employee
is subject to any and all provisions of District Policies
and Procedures.
The following hours are compensable:
a.Actual hours spent at meetings, conferences, or
functions, excludingexcepting meals and special events
of an entertainment nature held in conjunction with a
function.
a.
b.Actual hours spent in transit, excludingexcepting hours
spent in travel between staffthe employee’s residence
and the District. Any time spent in layover at a public
transportation facility is also compensable as transit
time, unless staffthe employee chooses to participate
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
4/5/2023
10/5/11
Page 9 of 9
in recreational activities during the layover.
On the other hand, time spent taking a break from travel
in order to eat a meal, sleep, or engage in other personal
pursuits not connected with traveling or making necessary
travel connections, such as sightseeing, visiting friends
and family, or other activities of a recreational or
entertainment nature, are not compensable.
7.Staff’sEmployees’ Responsibility
7.
a.In situations where staffan employee can use pthe Petty
Ccash procedures for reimbursement of travel expenses,
theythe employee may submit a “Petty Cash FormOrder” form
(Exhibit B) to be reimbursed. If expenses to be
reimbursed are beyond the scope of pthe Petty Ccash
procedures, staffemployees must submit a detailed
“Staff Expense Claim Form” (Exhibit C). Petty Ccash
Orders and staff eExpense cClaim Fforms shallshould be
supported by vouchers and itemized receipts of
expenditures for which reimbursement is being
requested. Receipts must be attached for all expenses
with the exception of per diem meal allowance. If a
receipt required for reimbursement is lost, the lost
receipt must be noted on the “Staff Expense Claim Form”
and approved for reimbursement before any payment can
be made. Claim forms must be submitted within 14
calendar days after the expenses arewas incurred.
a.
b.Expenses will not be reimbursed for meetings that have
been pre-paid and not attended. StaffEmployees may be
required to reimburse the District for any pre-paid
expenses for any unexcused absence. The General Manager
will determine if an absence from a pre-paid meeting
is excused or unexcused.
b.
c.When two (2) or more employees combine an expense on
one receipt, the employee requesting reimbursement
shallshould indicate on the “Staff Expense Claim Form”
the identity of the other staffpersons sharing
expenses.
c.
OTAY WATER DISTRICT
BOARD OF DIRECTORSHUMAN RESOURCES POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
STAFF TRAVEL AND BUSINESS- RELATED
EXPENSES POLICY 34 5/3/2000
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10/5/11
Page 10 of 9
d.Expenses incurred by spouses, family members, or guests
are the staff’s responsibility of the employee.
d.
e.Any misrepresentation in connection with the petty cash
order or reimbursement process will be grounds for
discipline up to and including termination of
employment.
Attachments:
Exhibit A: “Staff Travel Authorization Request” Form and
“Instructions for Preparation of Staff Travel Authorization
Request Form”
Exhibit B: “Petty Cash FormOrder”
“Staff Expense Claim Form” and Exhibit C: “Instructions for
Preparation of Staff Expense Claim Form”
“Authorization to Drive A District or Private Vehicle Out of
San Diego County or to Transport Non-District Staff in a
District or Private Vehicle” Form
EXHIBIT A
OTAY WATER DISTRICT
STAFF TRAVEL AUTHORIZATION REQUEST
Employee Name:Date of Request:
Name and Location of Function:
Date(s) Function to be held: -
Is travel out of San Diego County? Yes No* (*not eligible for staff travel)
Note: If you will be driving a District vehicle out of San Diego County or driving non-
District personnel in a District vehicle or your private vehicle, you must obtain
authorization by completing the “Vehicle Use Authorization Form Out of County and
Transport Non-District Personnel” form. Otherwise, please check the box below.
I will be using my personal vehicle and not transporting non-District personnel.
Purpose of function:
Sponsoring Organization:
Request for Pre-Payment or Advance of Fees Related to the Function:
Expense Type Not
Needed
Pre-Payment
Requested
Advance
Requested
Registration $N/A
Airline $N/A
Auto Rental $N/A
Fuel** (for District or Rental Cars only) N/A $
Taxi/Shuttle** N/A $
Lodging $N/A
Meals** (see below) N/A $
Other Expenses (explain below) $$
**Advanced through petty cash.
Please request these expenses at
the conclusion of the trip if
possible.
Total Pre-Payment Requested: $
Total Advance Requested: $
Lodging Preference:
Explanation of Other Expenses:
MEALS CALCULATOR
Personal funds may be used in lieu of requesting advancement for meals. Meal
per diem amounts are the same regardless of travel destination out of the
County.
How many meals does the function provide? (do not include in calculation
PLEASE USE THE LATEST STAFF TRAVEL AUTHORIZATION REQUEST FORM
LOCATED IN SHAREPOINT IN THE DOCUMENT CENTER TAB OR CLICK HERE.
EXHIBIT A
below)
( x $28 = $ ) + ( x $16 = $ ) + ( x $15 = $ ) = $
Expected Expected Expected Total meal
dinners lunches breakfasts reimbursement
Employee Signature Date of Request
OFFICE USE ONLY BELOW THIS LINE
Total Pre-Paid: $ Total Advanced: $
Travel Approved by: Date:
(Department Chief)
Travel Approved by: Date:
(General Manager)
EXHIBIT A
INSTRUCTIONS FOR PREPARATION OF
STAFF TRAVEL AUTHORIZATION REQUEST FORM
Staff Travel must be approved by Department Chief and General Manager
The District will reimburse for necessary expenses incurred while traveling outside of San Diego County at District business and related
meetings, functions, training or traveling on District business including common carrier fares (economy class), automobile rental charges,
District business telephone calls, one personal telephone call home each day ($10 maximum per day), lodging, baggage handling, parking
fees, meals, gratuities, etc. Please review the “Staff Travel and Business Related Expenses Policy” to familiarize yourself with the District’s
requirements.
Transportation
Employees should endeavor to use the most appropriate mode of transportation given the purpose and nature of the trip. The District
will reimburse or pre-pay costs for economy (coach) class air transportation. Employees must obtain permission from their Department
Chief or GM before using a personal vehicle in conjunction with District business and if driving non-District personnel by completing
the “Vehicle Use Authorization Form Out of County and Transport Non-District Personnel” form.
Advances and Pre-payments
Employees may request pre-payment of registration, transportation, and lodging, and may request an advance for expected costs for
meals, fuel for District or rental vehicles, public ground transportation, and taxis using the “Staff Travel Authorization Request” form.
It is recommended that expenses for fuel, taxi and shuttle be reimbursed at the conclusion of the trip if possible.
Pre-payments and advances shall be limited to the employee’s expenses only. Advances should be requested in a timely manner to
allow normal processing through accounts payable.
Meals
Advances for per diem meals shall not exceed the per diem allowance anticipated for the trip. Receipts should not be submitted for
per diem meal allowances. If advancement for meal allowance is not requested, employee may use their personal funds to pay for
meals and request the per diem allowance after the travel is completed by submitting the “Staff Expense Claim Form.” It is
recommended that per diems for meals be reimbursed at the conclusion of the trip if possible. CalCard may not be used for meal per diems.
Per diem meal allowance shall be at the Meals Incidental Expenses (“M&IE”) rate determined by the U.S. General Services
Administration for San Diego, or amounts that the General Manager deems reasonable for the occasion or circumstances. Partial day's
per diem allowance shall be at the M&IE rate for breakfast, lunch and dinner, or amounts that the General Manager deems reasonable for the occasion or circumstances. The per diem meal allowance is inclusive of and assumes expenses for taxes and gratuities. Where
pre-paid registration includes meals, only meals that are not included in the registration will be provided as per diem meal allowance.
Receipts
Receipts must be attached for all expenses with the exception of per diem meal allowances. If a receipt required for reimbursement is
lost, the lost receipt should be noted next to the expense, submitted to the Department Chief, and approved by the Department Chief
before any reimbursement can be made. All receipts must have the nature of the expense and the business purpose noted on the
receipt. Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost
would have been without personal travel (e.g., single room rate as opposed to double room rate).
Staff Expense Claim Form
Upon return from travel, if expenses were incurred that need to be reimbursed, the “Staff Expense Claim Form” must be submitted
within 14 calendar days after the expense was incurred. Advances and pre-payments shall be deducted from expenses and
reconciled with travel authorization forms where applicable.
No information on the “Staff Travel Authorization Request Form” may be designated as confidential in nature. All expenses must
be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic beverages e.Entertainment or recreation b. Parking or traffic violations f.Expenses incurred by spouses, family members, or guests
c. In-room movies g. Early check-in/priority boarding fees d. Laundry service
This policy does not apply to meetings, conferences, training or functions attended in the County of San Diego. For expenses in the County of San Diego please coordinate reimbursements with your department.
Rev. 12/17
EXHIBIT B
PLEASE USE THE LATEST PETTY
CASH ORDER FORM LOCATED IN
SHAREPOINT IN THE SERVICE
CENTER TAB OR CLICK HERE.
PLEASE USE THE LATEST STAFF
EXPENSE CLAIM FORM LOCATED IN
SHAREPOINT IN THE SERVICE
CENTER TAB OR CLICK HERE.
INSTRUCTIONS FOR PREPARATION OF
STAFF EXPENSE CLAIM FORM
The necessary expenses incurred while traveling outside of San Diego County at District business related meetings,
functions, training or traveling on District business including common carrier fares (economy class), automobile rental charges,
District business telephone calls, one personal telephone call home each day ($10 maximum per day), lodging, baggage handling,
parking fees, meals, gratuities, etc. will be reimbursed when documented on the Staff Expense Claim Forms. Receipts must be
attached for all expenses with the exception of per diem meal allowances. If a receipt required for reimbursement is lost, the lost
receipt should be noted next to the expense, submitted to the Department Chief, and approved by the Department Chief before any
reimbursement can be made. All receipts must have the nature of the expense and the business purpose noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Per diem
meal allowance shall be at the rate provided by the Meals Incidental Expenses (M&IE), or amounts that the General Manager deems
reasonable for the occasion or circumstances. Partial day's per diem allowance shall be at the rate provided by M&IE for breakfast,
lunch and dinner, or amounts that the General Manager deems reasonable for the occasion or circumstances. The per diem meal
allowance is inclusive of and assumes expenses for taxes and gratuities of up to 15%. Where pre-paid registration includes meals,
only meals that are not included in the registration will be provided as per diem meal allowance.
Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would
have been without personal travel (e.g., single room rate as opposed to double room rate).
Mileage will be reimbursed for travel using personal vehicles only if a District vehicle is not available. In order to be reimbursed for
mileage, employees must have a valid Driver’s License and current automobile insurance that meets or exceeds State minimum
insurance requirements.
Advances and pre-payments shall be deducted from expenses and reconciled with travel authorization forms where applicable.
Department Chiefs or the General Manager may authorize Expense Claim Forms.
Claim forms must be submitted within 14 calendar days after the expense was incurred.
No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed
on the form.
The following expenses are not reimbursable:
a. Alcoholic beverages d.Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c.In-room movies f. Expenses incurred by spouses, family members, or guests.
Page 1 of 45
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: MEDIA RELATIONS POLICY Policy
Number
Date
Adopted
Date
Revised
46 9/01/04 5/01/194/5/23
PURPOSE
To establish procedures to better inform the public, Otay Water District
(District) customers, businesses and other stakeholders on water, sewer,
and recycled water service, and other District-related matters by
engaging in a defined and proactive media relations program.
BACKGROUND
The District recognizes an effective and quick expeditious way to
communicate District policies and activities is by working in partnership
with the news media. This policy requires that news media inquiries
regarding the District and the District’s position on matters should be
given high priority, and should be responded to as quickly promptly and
efficiently as possible. Every effort should be made to reasonably meet
media deadlines and to ensure that all information released is accurate
and is in compliance with laws and regulations concerning individual
privacy and confidentiality.
POLICY
The General Manager’s office is responsible for the District's media
relations program. To assist with this critical function, the District’s
General Manager’s staff may retainprovides media relations assistance
to provide publicand public, community, and governmental relations, and
other outreach services.
Before responding to any media inquiries, Aall District staffemployees
should notify the General Manager, their department’s Chief, and/or the
General Manager’s Communications Officer about media inquiries. With
regard toRegarding District media requests, if possiblee, all District
staff shall direct the news media representative reporter/representative
shall to contact the General Manager and/or the Communications Officer
who is authorized to speak on behalf of the District. Because the media
often work on deadlines, all departments should respond as soon as
reasonably possible when the General Manager, Communications Officer,
or Communications Assistant requests department information or via a
news media reporter/representativespokesperson for the media. Specific
guidelines for responding to media requests regarding the District’s
position on matters are as follow:
ATTACHMENT D
Page 2 of 45
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: MEDIA RELATIONS POLICY Policy
Number
Date
Adopted
Date
Revised
46 9/01/04 5/01/194/5/23
DISTRICT SPOKESPERSONS
All spokespersons noted below should have discussions orally or
writtenvia email with the General Manager’s office and/or General
Manager's designated staff to obtain the appropriate, accurate, and
approved District-related facts and information about the topic or issue
at hand before acting as a spokesperson to the media.
Unless otherwise authorized, the District's only designated
spokespersons to speak on behalf of the District are the following:
President of the Board of Directors or Board members as assigned
General Manager
Communications Officer
Other Ddesignees authorized by General Manager as noted by General
Manager’s memoin writing. via email.
MEDIA INQUIRIES
Any media inquiry received by other District staff regarding the District
or the District’s position on a matter should be referred immediately to
the General Manager through the Department Chief. An appropriate response
to the media is: "I'm sorry; I don't have the full information regarding
that matter. I will give your request to District management, and someone
from the District will respond to you as soon as they are available."
Any staff member should obtain the reporter's name, media organization,
phone/cell number or cell phone number, email address, topic of the
story, and the deadline. Staff in
the General Manager’s office will make all reasonable efforts to
coordinate a response with the General Manager and appropriate District
staff.
LITIGATION, PERSONNEL AND DISTRICT ELECTION ISSUES
Generally, the business conducted by the District is public, and
therefore, is public information. Inquiries regarding pending
litigation, matters involving a significant exposure to litigation,
Page 3 of 45
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: MEDIA RELATIONS POLICY Policy
Number
Date
Adopted
Date
Revised
46 9/01/04 5/01/194/5/23
certain personnel related information, and District election information
are may be exceptions. If unknown, staff shall always verify with the
General Manager’s Office.
Known Iinquiries regarding pending litigation or exposure to litigation
and District election issues should be referred to the General Manager’s
office.
GENERAL OR ROUTINE ISSUES
Calls from the media should always be referred immediately to the General
Manager’s office through the employee's Department Chief or supervisor.
The General Manager’s office will coordinate a
response with designated staff and/or Board members, including
designating a spokesperson.
When theThe General Manager’s office has designated a spokesperson to
respond to specific questions from the media, the General Manager should
shall be informed of the topic, the name of the reporter, news media
organization, media/reporter contact information, and the proposed date
of airing or publication, either before or immediately following these
any interviews.
DISTRICT-INITIATED INFORMATION
The District also makes its own efforts to contactget in touch with the
media. For the most part, this proactive media contact is
initiated through the General Manager’s office. This includes issuing
press news releases and media advisories, and making personal contactings
with reporters and editors directly for stories and other coverage.
Departments seeking publicity for events or activities should shall not
contact the media or reporters directly. Rather, department staff shall
contact the Communications Officer in the General Manager’s office as
soon as possible to ensure the best media coverage of their activities.
Department staff members shall not initiate any news media contacts on
behalf of the District. Staff shall before first notifying the General
Manager’s Office and/or Department Chief. If approved by the General
Manager’s Office, the Communications Officer or General Manager’s
designee, will then contact the media directly.
CRISIS MANAGEMENT AND EMERGENCY/SERVICE OUTAGE ISSUES
Page 4 of 45
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: MEDIA RELATIONS POLICY Policy
Number
Date
Adopted
Date
Revised
46 9/01/04 5/01/194/5/23
Because the Operations Department staff may be called upon to restore
service due to outages, breakages, or in other critical situations, their
work is fundamental to the overall mission of the District. As a result,
Operations personnel may be the only staff at the scene of an incident
and may be called upon to address service restoration questions by the
media.
In these situations, all such inquiresinquiries will be immediately
referred to the Chief of Operations who will make every effort to ensure
that all information released is accurate, relevant, and appropriate.
Operations staff should notify the Chief of Operations immediately of
any such media inquiry. The Chief of Operations will then take the lead
for follow-up media communications and contact the General Manager and
Communications Officer. If possible and time permits, the Operations
Chief and/or Operations staff should coordinate messaging with the
Communications Officer first, but if time does not allow, the
Communications Officer should be notified as soon as possible.
Any media calls to other District staff regarding Operations matters
should be referred immediately to the Chief of Operations, and General
Manager’s Communications Officer. All information released directly to
the media by Operations should be provided immediately to the General
Manager's Communications Officer.
During a crisis or major emergency, the District’s Standardized Emergency
Management Plan Section 5.1-1 assigns responsibilities and procedures for
handling media and customer information.
To manage a crisis or a major emergency that may or may not consist of
a service outage, the Communications Officer will work with the General
Manager and designated Department Chiefs to assess if the situation
requires outside services to assist with and/or manage the crisis. Each
situation is unique and will be discussed on an as-needed basis.
CONCLUSION
Nothing in this policy should be construed as to restrict or preclude
an employee of the District staff, or a representative of the Otay Water
District Employees’ Association (OWDEA) or other bargaining unit, from
communicating with the press on matters of public concern or on matters
related to the association and/or union activities. However, such
communications should not be made during on-duty -time, nor be disruptive
Page 5 of 45
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject: MEDIA RELATIONS POLICY Policy
Number
Date
Adopted
Date
Revised
46 9/01/04 5/01/194/5/23
to the District’s operations, and should be clearly understood as not
being made on behalf of the District or representing the District’s
official position on such matters.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 3, 2023
SUBMITTED BY: Kevin Koeppen, Assistant
Chief of Finance
PROJECT: DIV. NO. All
APPROVED BY: Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Adopt Resolution No. 4427 Amending Policy No. 25, the Reserve Policy, of the District’s Code of Ordinances.
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4427 amending Policy No. 25, the
Reserve Policy, of the District’s Code of Ordinances.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To present to the Board a revision of Policy No. 25, the Reserve Policy.
BACKGROUND:
Periodically District staff review the District’s policies for potential updates and revisions related to changes in the District’s
operations and practices.
ANALYSIS:
Based on this current review, staff recommend several changes to the
Reserve Policy. The recommended changes are to add clarity to the policy or to remove components of the policy which are no longer
applicable under current District operations and practices. The following changes are being recommended:
•Clarifying language is being added to Section 2.1b to reflectthat system fees are charged based upon both customer class and
meter size.
AGENDA ITEM 6c
• Section 2.1g, Special Rates and Charges (Restricted), was added to reflect treatment of outside and interim users. Historically,
these customers were a component of the temporary rate which was eliminated on January 1, 2024. There are 18 customers that are considered outside or interim users.
• Sections 2.4c and 4.1 were amended to reflect the change in debt standards from Certificates of Participation (COPs) to Revenue
Bonds. Industry standards have changed, resulting in the structuring of debt as COPs being replaced with Revenue Bonds.
The modification to the policy reflects this change. In addition, Section 4.1c was modified to reflect the need to maintain debt reserve levels as contractually required under the debt agreements.
• Section 3.0b was amended to remove references to temporary fees and sales as those were formerly a component of the temporary rate which was eliminated.
• Section 3.1, Other Post Employment Benefits (OPEB)Fund, is being removed from the policy and from Diagram 3.6. While the District still has the OPEB plan, the fund referred to in the policy was applicable when the District’s OPEB funds were maintained within
the District’s reserves. The District has transitioned the OPEB reserves to the California Employees Retirement Trust (CERBT)
and this reserve is no longer applicable.
• Section 3.2b was modified for the elimination of the temporary
rate and the addition of Section 2.1g Special Rates and Charges.
• Changes were made to Diagram 3.3 to reflect the latest allocation of capacity fees to the replacement and expansion reserve, which is based on the ratio of current economic
dwelling units to ultimate economic dwelling units.
• Removed references to Temporary Rates or 2x the water rates from language and tables. Temporary Rates and the use of 2x the water rates for temporary users (i.e., construction, interim, and
outside users) were eliminated with the implementation of the January 1, 2023, rates. The rates charged to these customers are now categorized within the District’s prior existing customer classes or the construction class. FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
Amendments to the Reserve Policy do not have any financial impact.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term financial planning and debt planning. LEGAL IMPACT:
None. Attachments:
A) Committee Action
B) Resolution No. 4427 Exhibit I Strike-through Policy No. 25 Exhibit II Proposed Policy No. 25
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4427 Amending Policy No. 25, the Reserve Policy, of the District’s Code of Ordinances.
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 19, 2023, and the following
comments were made:
• In response to a question from the Committee, staff stated
that reserves are balanced annually as part of the budget process. Staff communicated that the potable, recycled,
and sewer operations are looked at independently. There is also no comingling of water and sewer funds. Upon completion of the discussion, the Committee supported presentation to the full board as a Consent Item.
Page 1 of 1
RESOLUTION NO.4427
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT AMENDING
RESERVE POLICY NO. 25 OF THE
DISTRICT’S CODE OF ORDINANCES
WHEREAS, the Otay Water District Board of Directors have
been presented with an amended Reserve Policy No. 25 of the
District’s Code of Ordinances for the financial management of
the Otay Water District; and
WHEREAS, the amended Reserve Policy has been reviewed and
considered by the Board, and it is in the interest of the
District to adopt the amended Reserve Policy; and
WHEREAS, the strike-through copy of the proposed policy is
attached as Exhibit 1 to this resolution; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
amended Policy No. 25, incorporated herein as Exhibit 2, is
hereby adopted.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 3rd day of May,
2023, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
________________________
President
ATTEST:
____________________________
District Secretary
Attachment B
Page 1 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
1.0 The District
The Otay Water District is a California municipal water district,
authorized in 1956 by the State Legislature under the provisions
of the Municipal Water District Act of 1911. The District is a
"revenue neutral" public agency; meaning each end user pays their
fair share of the District's costs of water acquisition,
construction of infrastructure, and the operation and maintenance
of the public water facilities.
The District provides water service within its boundaries, and
provides sewer and recycled water service within certain portions
of the District. As such, the District operates three distinct
business segments:
•Potable water
•Recycled water
•Sewer
Each of these business segments has an identifiable customer base.
In addition, the developer community, large and small, makes up a
significant class of customers for each business segment. As a
result, the District has four distinct customer service types:
•Developers
•Potable water users
•Recycled water users
•Sewer users
The District has established practices and developed computer
systems that have enabled the District to maintain a clear
separation between the service costs relating to each of its four
customer service types. Regardless of customer class, financial
principles regarding cost allocation and fund accounting are
fundamental to the District’s Reserve Policy. These principles
are derived from the statements of the Governmental Accounting
Standards Board (GASB), and from oversight and advisory bodies
such as the California State Auditor, the Little Hoover
Commission, and the Government Finance Officers Association
(GFOA). These principles have significant impacts on how the
finances of the District are organized and how financial processes
work within the organization.
Exhibit 1
Page 2 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
1.1 The District’s Use of Financial Resources
All the District’s expenditures fall into two broad categories:
operating costs and capital expenditures. The operating costs
include costs relating to the purchase and delivery of potable and
recycled water, and the transportation and treatment of sewage.
The capital expenditures support the construction of
infrastructure necessary to deliver services. The District uses
various funds to support the operating and capital efforts.
Operations and maintenance are financed only by rates and charges,
also called pay-as-you-go, while capital infrastructure is
financed using two financing methods: pay-as-you-go and debt
issuance (requiring annual debt service). The Capital Improvement
Program (CIP) and the two funding methods support the
construction, betterment, and replacement of infrastructure in all
three business areas: potable, recycled, and sewer.
The District establishes different funds to track revenues
allocated to different activities. Once established, each fund
receives financial resources up to the levels defined in this
policy. Every year, as a part of the annual budget process, the
District’s rate model is updated for each fund with the current
fund balances and the estimated revenues and expenditures for the
next six years. The expenditure requirements and financial
resources are then evaluated to ensure that the existing fund
balances and additional revenues are sufficient within the current
budget cycle and for the next five years to maintain target fund
levels. If a deficit is identified, then options for transfers,
shifting CIP projects, debt issuance(s), cost saving measures,
and/or rate increases are evaluated.
1.2 The District’s Capital Improvement Program (CIP)
The planning, design, and construction costs of all capital
facilities within the three business segments are allocated to
four cost types and corresponding fund categories: New Water
Supply, Expansion, Replacement, and/or Betterment. The allocation
to these four cost types is defined in the District’s Capital
Improvement Program (CIP) and is determined by an engineering
analysis that identifies which type of customer will benefit from
each facility, planned or existing. The costs of the capital
improvements are borne by either existing users or by the
developing areas, or by a combination of the two, as applicable.
Page 3 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
This Reserve Policy protects both the existing users and the
developing areas from incurring unwarranted costs. Developing
areas are not required to finance facilities that are replacement
or betterment and established areas are not required to replace
facilities before they are worn out because of new development.
However, to ensure a fair allocation of costs, each facility has
the potential to be classified into any or all of the four cost
types. In addition to these cost types, there are occasional CIP
projects that may be billable to a third party, if for example a
third party requires a District facility be relocated.
Paragraphs a through d, which follow, describe how the costs of
capital facilities are financed through various fees.
a. New Water Supply
The portion of a new supply project that benefits new users
is financed from the reserves in the New Water Supply Fund
category. These reserves were primarily derived from
proceeds of the new water supply fee. The New Water Supply
Fund is restricted, meaning the amounts credited to this fund
are accounted for separately and are used solely for the
planning, design, and construction of new water supply
expansion facilities. Debt financing may also be a temporary
financial resource to finance new water supply projects. The
District has a Debt Policy (Policy No. 45) that guides the
debt issuance process. Any debt proceeds used for this
purpose would be restricted in nature and tracked separately.
General use reserves may also be placed in the designated New
Water Supply Fund and used for water supply projects.
Effective December 1, 2020, new water supply fee collection
was discontinued. The New Water Supply Fund will continue to
be used to fund qualified projects and to pay the
proportionate share of debt service for new water supply
projects until the monies in the fund are fully depleted.
b. Expansion
The portion of a CIP project that benefits new users is
financed from the reserves in the Expansion Fund category.
These reserves are primarily derived from proceeds of the
“incremental” portion of the capacity fees collected within
developing areas. Capacity fees are accounted for
separately and used for the planning, design, and
construction of expansion facilities. Additionally,
expansion may be financed by the “buy-in” portion of the
capacity fee, which is restricted for CIP purposes, but not
Page 4 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
specifically for expansion. Debt financing can be a
temporary financial resource for expansion projects. General
use reserves may also be placed in the designated Expansion
Fund and used for expansion projects.
c. Replacement
The portion of a CIP project that benefits existing users by
replacing an existing facility is financed from the reserves
in the Replacement Fund category. Replacement of facilities
may be financed with proceeds from the “buy-in” portion of
the capacity fees, general use reserves held in the
designated Replacement Fund, and/or debt proceeds. The
various funding sources available for replacement projects
are anticipated to provide the necessary flexibility to begin
projects while any necessary debt financing is being
obtained.
d. Betterment
Facilities that improve reliability, meet new regulations, or
create increased levels of service are considered betterment
facilities that benefit existing users. The reserves in the
Betterment Fund category are used to finance these projects
or portions of projects. Proceeds of the “buy-in” portion of
the capacity fees may also be used to finance betterment
projects. General use reserves may be placed in the
designated Betterment Fund and used for betterment projects.
1.21 Relocations
Occasionally, a third party requires relocation of a District
facility. If the District has a superior easement the third
party will pay the relocation cost, but only to the extent that
the District does not benefit from the relocation. When
relocation is required, a CIP project may be created which is
wholly or partially financed by a third party. On occasion, the
District will require that its own facilities be relocated.
Depending on the nature of the facilities, the financial resources
for these projects could be from new water supply, expansion,
replacement, betterment, and/or third-party financing. Each
project is individually negotiated with the third party based on
the facts and circumstances of the relocation. Occasionally, the
District will improve the facilities that are being relocated.
When determining how to allocate costs to various funds the
following guideline is suggested: if a project has more than five
years of useful life remaining, an incremental cost view should
Page 5 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
be considered; if the project has less than five years of useful
life remaining, a pro-rata cost approach should be considered.
Also, the likelihood that the District will benefit from an
asset’s life extension should be evaluated prior to allocating
costs.
1.22 Oversizing
If deemed reasonable by the District, in connection with the
construction of backbone facilities, a developer may be required
to oversize new facilities for future development. The developer
is reimbursed for incremental oversizing costs as per Policy
No. 26. These reimbursements are not available for the
distribution system within a development which is an obligation
of the developer.
1.23 Exclusion of Developed Areas from Expansion Costs
Developed areas are assumed to have sufficient supply and capacity
to meet their current requirements as provided by the developers.
In addition, they are considered to have borne capital financial
costs that are at least proportionate to the benefits they have
received from capital facilities. Accordingly, no regional
capital financing costs are allocated to these areas so that they
will not incur any costs for newly developing areas, except for
capital projects that produce district-wide benefit or cost
savings.
1.24 Improvement Districts (IDs)
Improvement Districts (IDs) are established to facilitate the
financing of particular improvements by the specific
beneficiaries. The District has a number of IDs that were
established for General Obligation (GO) debt repayment. AllMost
GO debt has been paid off and it is unlikely that the District
will issue additional GO debt. IDs continue to be used for other
purposes: 1) to distinguish sewer customers from water customers
on the county tax roll; or 2) to place parcels on the county tax
roll for the collection of availability fees.
Over the years, the District moved to a district-wide perspective
of financing improvements. This philosophy is evident by the
district-wide capacity and annexation fees. The District also
uses district-wide water rates. As time goes on, it is expected
that IDs will continue to outgrow their purpose and their use will
diminish.
Page 6 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
1.3 The Purpose of the Policy
Public entities accumulate and maintain reserves to ensure both
financial stability and continuous availability of services.
Financial stability and the resulting improved credit quality
allow the public entity to weather times of uncertainty and the
impact of negative events, both major and minor. Reserves allow
for the ongoing maintenance of property and timely payment of
expenses, even when such expenses exceed money available from a
single fiscal period. Ultimately, the type and level of
reserves are driven by the type and magnitude of uncertainty
faced by the public entity.
A “reserve” has a number of functions, as follows:
• Working capital is required to ensure timely payment of
obligations.
• A buffer against volatility in revenues.
• Liquidity is required to obtain other goods and services
(e.g., bank services).
• Designated money to protect creditors.
• Money set aside to replace assets at the end of their useful
lives.
• Money set aside to repair or replace assets damaged or
destroyed at unanticipated times.
It is important to note that reserves, fund balance, and net
assets are not the same. Fund balance and net assets are
accounting terms and may not always be in the form of cash or
liquid investments. Fund balances and net assets may not always
be reserves unless a designation of all or a portion of fund
balance is made. In addition, the term fund balance was replaced
by net assets as codified by the Governmental Accounting Standards
Board (GASB).
In short, reserves are the liquid assets of the District,
accumulated and maintained for application to finance contingent
future activities, whether known or unanticipated, operating or
capital in nature. The District’s Reserve Policy governs the
management and use of these financial resources. Few policies
have a more significant impact on the financial health and
stability of the District. This policy explains several key
Page 7 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
financial concepts used by the District and provides some
background information on the overall strategies and practices
utilized. The District has a fiduciary obligation to its
customers, to manage and direct the use of public funds for the
purpose of providing water and sewer services in an efficient and
financially sound manner.
1.4 Policy Guidelines
In 2000, the Little Hoover Commission reviewed the levels of
reserve funds for special districts in California and prepared a
report reflecting that special districts were accumulating
unreasonable levels of funds. As a proactive response, the
California Special Districts Association (CSDA) prepared Reserve
Guidelines for its members. The Reserve Guidelines were
significant in noting that reserve levels need to be in context of
the organization’s overall business model and capital improvement
plan.
There are a number of potential events which the District should
consider in the development of reserves:
• Economic Uncertainty - performance of the regional economy
and the impact of that performance on demand for water.
• Weather - the amount of rainfall and the impact of weather on
the availability and cost of water as well as the demand for
water.
• Government Mandates - the impact of federal and state
regulations, particularly environmental regulations.
• Tax Changes - limitations on the District’s taxing and
spending powers through the passage of a voter referendum,
the impound of District property taxes, the removal of the
District’s power to levy property taxes, further increases to
Educational Revenue Augmentation Fund (ERAF) contributions,
or changes in calculation methodology.
• Operating Costs - increases in operating and maintenance
costs because of inflation, labor agreements, or other
modifications.
• Force Majeure - unanticipated expenditures resulting from
natural disasters or intentional acts.
Page 8 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
• Emergency Maintenance - unanticipated expenditures resulting
from unexpected failure of assets (e.g., rupture in the
primary transmission system).
• Unexpected Variation in Cash Flow - the incidence of
additional costs or decreased revenues that require short-
term borrowing in the absence of sufficient financial
resources.
The California State Auditor has, in its oversight role, offered a
number of quality recommendations for the development of reserve
policies as outlined in its report entitled, “California’s
Independent Water Districts: Reserve Amounts Are Not Always
Sufficiently Justified, and Some Expenses and Contract Decisions
Are Questionable,” dated June 2004, Report No. 2003-137. All of
these recommendations have been incorporated into this policy in
an effort to address key issues surrounding the management and use
of District reserves. The detailed objectives as identified by
the State Auditor are as follows:
• Distinguish between restricted and unrestricted reserves.
• Establish distinct purposes for all reserves.
• Set target levels, including minimums and maximums, for the
accumulation of reserves.
• Identify the events or conditions that prompt the use of
reserves.
• Conform to plans to acquire or build capital assets.
• Receive Board approval and that it is in writing.
• Require periodic review of reserve balances and rationale for
maintaining them.
Yet, the State Auditor’s report acknowledges that the California
Constitution (Article XIII B, Section 5) is vague in its
provisions governing the accumulation and use of reserves.1
1 California State Auditor, Bureau of State Audits, “California’s Independent Water Districts: Reserve Amounts Are
Not Always Sufficiently Justified, and Some Expenses and Contract Decisions Are Questionable,” dated June 2004,
2003-137; p. 8.
Page 9 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Specifically, the Constitution states that “each entity of the
government can establish contingency, emergency, unemployment,
reserve, sinking fund…or similar funds as it shall deem reasonable
and proper.”2 Similarly, the State’s Water Code does not impose
any requirements as to specific or recommended reserve fund
levels. As a result, the public finance community has yet to
settle on any real objective standards for the level of reserve
funds appropriate for governmental enterprises. This lack of
consensus as to specific standards is indicative of the wide
variance of the financial and operations context for different
districts and different contingencies justifying reserves.
The Government Finance Officers Association (GFOA) in its
“Recommended Practice on Appropriate Level of Unreserved Fund
Balance in the General Fund” (2002) states that in
establishing a policy governing the level of unreserved fund
balance in the general fund, a government should consider a
variety of factors. These include:
• The predictability of its revenues and the volatility of
its expenditures (i.e., higher levels of the unreserved
fund balances may be needed if significant revenue
sources are subject to unpredictable fluctuations or if
operating expenditures are highly volatile).
• The availability of resources in other funds as well as
the potential drain upon general fund resources from
other funds (i.e., the availability of resources in
other funds may reduce the amount of the unreserved fund
balance needed in the general fund, just as deficits in
other funds may require that a higher level of
unreserved fund balance be maintained in the general
fund).
• Liquidity (i.e., a disparity between when financial
resources actually become available to make payments and
the average maturity of related liabilities may require
that a higher level of resources be maintained).
• Designations (i.e., governments may wish to maintain
higher levels of the unreserved fund balance to
compensate for any portion of unreserved fund balance
already designated for a specific purpose).
2 California Constitution, Article XIII B, Section 5.
Page 10 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
In the preparation of this policy, each of the CSDA guidelines and
the GFOA recommendations have been considered. In addition, all
seven objectives provided by the State Auditor are specifically
addressed for each reserve. The District wholly supports the
State Auditor’s efforts to bring a high-level of quality to
reserve governance and establish a standard of performance.
The District recognizes that the customer pays for services
provided. Quality management requires that periodic valuations be
performed so that fees and charges can be set at appropriate
levels to recover the cost of service. The District’s Reserve
Policy has been drafted with consideration of the GFOA, CSDA, and
State Auditor’s general guidelines as provided above.
Additionally, the District has adopted the following principles in
the management of its financial resources:
• Reserves are held and used only for the purpose for which
they are collected. This is done to maintain equity among
customers.
• Each of the service types is tracked separately so that
expenditures and revenues can be monitored and evaluated for
each customer type. This provides the District with the
necessary information to appropriately charge for each of the
services.
• Separation of operations and maintenance from capital
expenditures occurs within each of the service types. This
is done because the financing of these expenditures is often
on different timelines or use different reserves.
• The District will hold its reserves at responsible and
prudent levels. This policy sets minimum, maximum, and
target levels for each of the various funds. This has been
done so that the District can maintain reserves to meet the
purpose for which the funds were established. The levels are
set by reference to line items in the District’s financial
statements and approved budgets. This allows reserve levels
to adjust to the District’s changing financial circumstances.
• Debt financing of facilities provides intergenerational
equity and maintains rates at reasonable levels. This equity
is accomplished with long-term financing which spreads the
cost of facilities over the life of the facilities. The
burden to pay for facilities is then paid by those who use
Page 11 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
them. The District could amass significant reserves by pre-
collecting financial resources in a Replacement Reserve Fund
allowing the District to cash finance all replacements.
However, this would require significant rate increases
burdening the current customers and creating reserve levels
difficult to defend to the ratepayers or other oversight
entities.
These concepts are fundamental to the way the District manages its
funds and have a direct impact on the way rates and charges are
set. The District performs annual budget evaluations and updates
its rate model on an annual basis to monitor and adjust the
various funds, expenditures, and revenue sources. The separation,
tracking, and projecting of the various funds, expenditures, and
expenditures revenue sources create the essential information
necessary for the equitable rate structure maintained by the
District. The annual review preserves the balance between
services provided and the fees charged. This review also ensures
that reserves will be available to continue to serve the
District’s customers.
Financial Sources
2.0 Developers
a. Meter Installation Charges (General Use)
Meter fees are charges collected for new water service
connections. Fees vary depending upon meter size and type of
service. The costs associated with meter installations are
included in the Operating Expenses section of the budget.
Developers finance these charges.
b. Developer Deposits (General Use)
These deposits are for the engineering and operations
services provided to developers. They are tracked separately
for each developer and any excess amount is returned to the
developer.
c. Water Annexation Fees (General Use)
Annexation fees3 are collected as a condition of annexing
into the District’s potable or recycled water facilities.
Since the existing facilities have been built and maintained
3 Otay Water District Code of Ordinances, Section 9.
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by developers or customers within the District, the
annexation fee is calculated based on the present value of
all property taxes (1% property tax and availability fees)
paid by existing and prior customers. The annexation fee
reimburses existing customers for past contributions so that
all customers have contributed more equally to water
facilities. Proceeds of annexation fees are unrestricted and
may be used for any general fund purpose.
d. Sewer Annexation Fees (General Use)
A sewer annexation fee is collected when property is annexed
into an improvement district (ID). Since the existing
facilities have been built and maintained by developers or
customers within a sewer ID, the annexation fee is calculated
based on the present value of all availability fees paid by
existing and prior customers. The annexation fee reimburses
existing customers for past contributions so that all
customers have contributed more equally to sewer facilities.
Proceeds of the annexation fees are unrestricted and may be
used for any general fund purpose.
e. Water Capacity Fees (Restricted)
Water capacity fees4 are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated with
expansion, replacement, or betterment of facilities. The
“buy- in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities (excluding new water
supply expansion).
4 Otay Water District Code of Ordinances, Section 28
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f. Sewer Capacity Fees (Restricted)
Sewer capacity fees are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated with
expansion, replacement, or betterment of facilities. The
“buy-in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities. For parcels within a
sewer ID the calculation excludes the tax debt already paid
by these customers, therefore producing a lower fee than for
parcels outside of a sewer ID. The capacity fees are
restricted to pay for planning, design, construction, and
financing associated with the expansion, replacement, or
betterment of facilities.
Facility needs are based on projected land use planning.
Changes in anticipated future land use occur and can alter
projected facility requirements. Thus, both the anticipated
facilities’ needs and their projected costs change over time as
regulatory agencies make changes to land use. The District
periodically reviews the capacity fee calculation to accommodate
such variations. These fees are paid by developers.
The District’s construction of infrastructure occurs prior to the
addition of EDUs. This sequence serves two purposes: 1) it
ensures that the District can serve the pending construction as it
is completed; and 2) it is more efficient to oversize many
facilities at the outset rather than build for the current need
and then reconstruct when the future need is realized. As a
result of this strategy, the District has financed construction
with bond financing as the existing expansion reserves are
depleted.
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The water capacity fee is calculated based on the combined
recycled and potable water systems’ needs. This methodology is
used because the two water systems work hand-in-hand. All
capacity fees can be used for either potable or recycled but must
be tracked to distinguish between the “buy-in” and “incremental”
portions as described above. So, while capacity fees are not
restricted separately by potable and recycled, they are tracked
separately.
Diagram 2.0: Flow of Funds - Developer Sources
2.1 Customers/Users
a. Uniform Rates and Charges (General Use)
Charges to users for water, sewer, and recycled water are
uniform throughout the District for similar customer types.
b. Monthly System Fees (General Use)
This is a fixed revenue source that is charged monthly. The
amount of the charge is based on the customer class and
meter size.
c. Energy Charges (General Use)
The energy pumping fee is a charge per unit of water for each
100 feet of lift, or fraction thereof, above the base
elevation of 450 feet. This charge is placed on the monthly
water bills of all water customers.
Meter
Installation
Charges
Developer
Deposits Annexation
Fees
Capacity
Fees
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
DEVELOPERS
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d. Penalties (General Use)
Penalties are added to the monthly water and sewer bills for
late charges, locks, etc.
e. Pass-through Fixed Charges (General Use)
A fixed monthly charge to the District’s customers intended
to collect sufficient funds to pass-through the increased
fixed costs from the County Water Authority (CWA) and the
Metropolitan Water District (MWD).
f. Special Rates and Charges (General Use)
In addition to the uniform water and sewer charges, the
District has a special sewer rate for the Russell Square lift
station. The Russell Square fee is for construction,
installation, maintenance, or repair of the Russell Square
lift station. This fee is collected in accordance with the
Russell Square sewer charge. (See Code of Ordinances
Section 53.03B.)
g. Special Rates and Charges (Restricted)
In addition to the uniform water charges, the District has a
special rate charged to outside and interim users. Outside
and interim users are charged an additional fee for
temporary capacity. The fee is collected in accordance with
outside and interim service agreements. (sSee Code of
Ordinances Section 25.)
g. Temporary Meter Fees (General Use/Restricted)
Water charges, in lieu of capacity fees, are charged on
temporary meters. This is done because temporary meters use
system capacity but they are not charged a capacity fee.
Temporary water use is charged at two times the water rate
with the added charge placed in the Restricted Expansion
Fund. The primary users of these temporary meters are
developers; however, general customers also use these for
various purposes.
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Diagram 2.1: Flow of Funds - Customer Sources
2.2 County-Collected Taxes and Fees
a. General Levy Property Tax Receipts (1% Property
Tax) (General Use)
In 1978, Proposition 13 limited the levy of ad valorem
property taxes on real property to one percent of the
assessed value of such property. Subsequent legislation,
AB 8, established that the receipts from the one percent levy
were to be distributed to taxing agencies proportionate to
each agency’s general levy receipts prior to Proposition 13.
Taxes received are for general use. Spending limits for the
District are governed by the 1979 passage of California
Proposition 4, Limitations of Government Appropriations (GANN
limit). Proposition 4 places an appropriation limit on most
spending from tax proceeds.
b. Availability Charges (General Use/Restricted)
The District levies availability charges each year in
developed and undeveloped areas. Current legislation
provides that any amount up to $10 per parcel is general use
and any amount over $10 per parcel is restricted to being
expended in and for the improvement district (ID) within
which it is collected. Accordingly, the District may use
availability charges in excess of $10 toward costs of water
Uniform Rates
and Charges
Monthly
System Fees
Energy
Charges
2x Water
RatSpecial
Rates and
Charges
Pass –Through
Fixed Charges Penalties
Special Rates
and Charges
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
CUSTOMERS / USERS
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and sewer facilities which are either, expansion,
betterment, or replacement of facilities consistent with the
purpose of the ID in which they are collected. This portion
of the proceeds of availability charges is geographically
restricted and restricted by purpose. As costs are incurred
on these projects the respective IDs are charged, reducing
the reserves. To the extent that availability charges are
not used for the purpose for which they are collected, they
must be returned to the property owners that paid them. The
District has historically used these reserves for the
betterment of capital facilities thus, the restricted
reserves are accounted for in “sub-funds” of the Betterment
Fund (See 2.1 f.).
c. Improvement District General Obligation (GO) Bond
Assessments (Restricted)
The District has historically issued general obligation
(GO) debt and established an ID for the repayment of that
debt. When this financing method is used, the county tax
roll can be used to collect special taxes or assessments
within the ID to pay the debt obligation. The proceeds of
the debt are restricted for the purpose as defined in the
bond documents.
Diagram 2.2: Flow of Funds – County Collection Sources
General Levy
Property Tax
Receipts
Availability
Charges General Obligation
Bond Assessments
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
COUNTY COLLECTED TAXES AND FEES
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2.3 Miscellaneous Income
a. Miscellaneous Rents and Leases (General Use)
Revenues received from the rental and lease of District
property are general use revenues. Not only are these
periodic revenues, but there is also a one-time fee charged
with the setup of each new lease. The District incurs
expenses related to these rents and leases. The one-time
fees are calculated to recover the costs of setting up the
leases.
b. Sewer Billing Fees (General Use)
Sewer billing fees are general use revenues. The District
provides processing and billing services to the City of Chula
Vista and bill and collect from their customers for sewer
service. These fees are to recover the cost the District
incurs to provide this service.
c. Interest Income or Expense Allocation (General Use,
Designated, and Restricted)
Interest income (expense) will be allocated every month based
upon each fund's month-ending balance. In this way, each
fund receives credit for interest earned by that fund and
each fund with a negative balance is charged for the use of
the other fund’s reserves.
Diagram 2.3: Flow of Funds – Miscellaneous Income Sources
Miscellaneous
Rents and Leases
Sewer Billing
Fees
Interest Income or
Expense Allocation
Restricted Funds
Designated Funds
Unrestricted and
Undesignated
(General Use) Funds
MISCELLANEOUS INCOME
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2.4 Debt Issuance
a. Loans (General/Restricted Use)
As the District determines that additional financing is
required for a particular purpose, the option of borrowing is
considered. The determination to borrow is made as a part of
the annual rate model update and is evaluated in accordance
with the Debt Policy before it is recommended to the Board
for action. As an option to bond indebtedness, loans are
available to satisfy short-term financing needs. These loans
may or may not be contractually restricted for a particular
purpose.
b. General Obligation (GO) Bonds (Restricted)
As the District becomes more developed it becomes less likely
that general obligation debt will be used as it requires a
vote of the public to be approved. Bond proceeds are
restricted for the construction of those facilities
identified in the GO bond issuance. Occasionally, specific
portions of bond proceeds may be allocated for the repayment
of the principal and interest, also called debt service, on
these bonds. As the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue
debt is made as a part of the annual rate model update and
is evaluated in accordance with the Debt Policy before it is
recommended to the Board for action.
c. Certificates of Participation (COPs)Revenue Bonds
(Restricted)
General revenues of the District are pledged as security for
Certificates of ParticipationRevenue Bonds (previously
Certificates of Participation) indebtedness. If the District
determines that additional financing is required for a
particular purpose, the option of debt issuance is
considered. The determination to issue debt is made as a
part of the annual rate model update and is evaluated in
accordance with the Debt Policy before it is recommended to
the Board for action. This form of financing has become the
industry’s preferred form of financing as it does not require
a vote of the general public.
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Diagram 2.4: Flow of Funds – Debt Issuance Sources
2.5 Inter-fund Transfers
Each year in the budgeting process, future fund balance
levels are projected for the next six years. Based on these
projections, transfers are recommended. Reserves may be
transferred between Unrestricted or Designated Funds and the
General Fund (see 4.0 “Funding Levels” and 4.1 “Fund
Transfers”). Reserves may not be transferred to or from any
of the Restricted Funds unless it is between two restricted
funds with a shared purpose.
Fund Types and Categories
3.0 General Funds
a. Purpose
The General Fund is neither restricted nor designated. The
District maintains one General Fund for each business
segment (water, sewer, and recycled). This fund holds the
working capital and emergency operating reserves. While
the General Fund has a short-term focus to finance the
District’s annual operations, it is supported by the six-
year rate model. This fund is primarily used to finance the
operations of the District; however, it can be used for any
District purpose.
Loans General
Obligation Bonds
Certificates of
Participation
Revenue
Bonds
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
DEBT PROCEEDS
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This fund can be used to supplement the District’s rates and
charges and be a temporary source of revenue to balance the
Operating Budget. This fund can also be used to avoid
spikes in the rates or significant and abrupt increases. It
is an industry practice to have a fund that can be used to
stabilize rates. This would only occur if there was a
temporary need to use reserves to smooth out a rate spike or
to ramp up what would otherwise be a dramatic rate increase.
The General Fund also plays a role in the debt planning of
the District. This fund is viewed by the debt markets as a
commitment by the District to ensure financial stability of
the rates and charges of the District. The District is
anticipated to need a number of debt issuances over the years
and this fund will help the District not only to stabilize
rate fluctuations but also to access low cost financing for
future projects.
b. Sources
The potable and recycled general funds receive Mmeter
installation charges, special rates and charges temporary
outside meter fees, uniform rates and charges, monthly
system fees, energy charges, penalties, pass-through fixed
charges, general levy property tax receipts, water
annexation fees, availability charges, miscellaneous rents
and leases, sewer billing fees, interest income or expense
allocation, and loans, and a portion of the temporary
outside water sales.
The sewer general fund receives sewer charges, penalties,
availability charges, sewer annexation fees, and interest
income or expense allocation.
c. Funding Levels
I. Minimum Level – The minimum reserve level for
each business segment of the General Fund is
three months of operating budget expenses
(evaluated separately for each segment).
II. Maximum Level – The maximum reserve level for the
General Fund is nine months of operating budget
expenses. In the event that this fund exceeds the
seven-month level, the excess will be evaluated or
transferred to one or more of the designated funds.
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III. Target Level – The target level of reserves is
three months of operating budget expenses. In the
event that the fund drops below the target level,
rate increases or fund transfers would be
considered.
3.1 Designated Other Post Post-Employment Benefits (OPEB) Fund
a. Purpose
Designated Other Post Post-Employment Benefits (OPEB)
reserves are “general use” reserves that have been set apart
by Board action to finance the medical benefits of qualified
retirees as outlined in the District’s benefits plan. This
fund is available to hold any Board designated OPEB funds.
The District also has a trust at CalPERS, CERBT, and is
restricted for the purpose of financing the OPEB liability.
Money held in the CalPERS trust restricts the funds
from any use other than OPEB. The two funds
are considered jointly when looking at target reserve levels.
Every two years, actuarial study is performed to
update the annual financing requirements.
Changes in the actuarial valuation may result from changes in
benefit levels, employee population, health insurance costs,
or general market conditions.
b. Sources
The OPEB liability may be financed by general use reserves
coming from user rates and charges, either from an operating
budget expenditure or from interfund transfers. Transfers
of unrestricted reserves may come from the various
designated funds or from the General Fund. As a part
of the normal budget process, annual operating revenues have
been sufficient to finance the ongoing needs of this
designated fund. While debt financing is
also an option, the District has only used user rates and
charges to finance this fund.
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Date
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I. Minimum Level – The minimum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. When
considering the reserve level of this fund, both
the District held OPEB reserves and CalPERS held
OPEB reserves must be considered jointly.
II. Maximum Level – The maximum reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, exceed the
OPEB liability, the District will reduce the annual
funding levels as defined by the actuarial study.
III. Target Level – The target reserve level for this
fund is equal to the District’s OPEB liability as
determined by the actuarial study. In the event
that the two funds, as described above, fall
below the OPEB liability, the District will
increase the annual funding levels as defined by
the actuarial study.
3.23.1 New Water Supply Fund Category
a. Purpose
The New Water Supply Fund category is to finance the
expansion portion of new water supply projects and is
therefore to be paid by developers. When considering the
reserve level of the New Water Supply category; the New Water
Supply Fund, the New Water Supply Debt Fund, and the
Designated New Water Supply Fund all work in concert and must
be considered jointly.
b. Sources
The New Water Supply Fund received reserves only from the new
water supply fee. Other funds within the new water supply
category of funds received debt proceeds and general use
reserves through a designation to this category. Effective
December 1, 2020, the new water supply fee collection was
discontinued. The New Water Supply Fund will continue to be
used to fund qualified projects and to pay the proportionate
share of debt service of new water supply projects until the
monies in the fund are fully depleted.
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c. Funding Levels
Effective December 1, 2020, the new water supply fee
collection was discontinued. The New Water Supply Fund will
continue to be used to fund qualified projects and to pay
the proportionate share of debt service of new water supply
projects until the monies in the fund are fully depleted.
Diagram 3.1: New Water Supply Fund
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Designated
New Water
Supply Fund
Designated Funds
Expansion
New Water
Supply Fund
Restricted Funds
New Water
Supply
Debt Fund
Restricted Funds
New Water
Supply Fund
General Fund – Rates and Charges
Debt Fund
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Diagram 3.2: New Water Supply Fund Category
3.33.2 Expansion Fund Category
a. Purpose
The Expansion Fund category is to finance the expansion
portion of capital projects and therefore is to be paid for
by developers. When considering the reserve levels of the
expansion category, the following funds work in concert and
must be considered jointly: Expansion Fund, Expansion Debt
Fund, Capital Improvement Fund, and the Designated Expansion
Fund. Potable and recycled reserves are considered jointly
while sewer is evaluated separately.
Funding Source Debt
Proceeds
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Designated
New Water
Supply Fund
Designated Funds
Expansion
New Water
Supply Fund
Restricted Funds
New Water
Supply
Debt Fund
Restricted Funds
New Water
Supply Fund
New Water
Supply Fund
Category
General Fund – Rates and Charges
Debt Fund
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b. Sources
The Expansion Fund is financed by water charges in lieu of
capacity fees (for temporary outside meters) and the
“incremental” portion of the capacity fee and restricted
special rates and charges. The other funds in this
category may also be financed by debt proceeds, the “buy-
in” portion of the capacity fee, and the general fund
through a designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures, the
CIP will move to purely replacement and
betterment projects. As the District moves
through this life cycle the need for expansion
reserves will decrease and may be reduced to
zero.
II. Maximum Level – The maximum reserve level for the
expansion category of funds is limited to five
years of unfinanced expansion facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing needs must be reduced by the projected
expansion revenues, bond financing, and any
restricted or general fund revenues allocated to
this fund category. If the combined expansion
reserves exceed target levels, the District should
consider reducing capacity fees, reallocating
restricted or designated funds to meet other
purposes, or shifting the timing of expansion
projects.
III. Target Level – The target level is six months of
expansion expenditures. It is important that the
expansion reserves remain at a minimum of six
months of expansion expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting expansion
reserves. If the combined expansion reserves
drop below six months of expenditures this would
trigger a transfer of general use reserves, a
bond sale, an adjustment to the timing of
expansion projects, or a reallocation of
restricted reserves. Bond proceeds would be
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placed in the Restricted Bond Fund, transfers of
general use reserves would be placed in the
Designated Expansion Fund, and transfers of
restricted reserves would be placed in the
Expansion Capital Improvement Fund.
Diagram 3.23: Expansion Fund Category
(1) For Water Capacity Fees 31.2% goes into the Expansion Ffund and 68.8% goes into
the Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the Capital
Improvement Fund.
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Date
Revised
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Fund, transfers of general use reserves would be placed in the
Designated Expansion Fund, and transfers of restricted reserves would
be placed in the Expansion Capital Improvement Fund.
Diagram 3.3: Expansion Fund Category
(1) For Water Capacity Fees 32.4% goes into the Expansion fund and 67.6% goes into
the Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the Capital
Improvement Fund.
Unrestricted and
Undesignated Funding
Sources
Expansion
Fund
Designated Funds
Fund
Restricted Funds
Expansion Capital
Improvement
Fund
Restricted Funds
Expansioon
Debt Fund
Restricted Funds
Restricted Funds
Debt
Capacity
Fees (1)
2x Water
RatesRestricte
d Special Rates
& Charges
Funding Source
General Fund – Rates and Charges
Fund
Capital
Fund
Bond
Debt
Expansion
Fund
Category
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3.43.3 Replacement Fund Category
a. Purpose
The Replacement Fund category is to finance replacement
projects. When considering the reserve levels of the
replacement category of funds, the following funds work
in concert and must be considered jointly: Debt Fund,
Capital Improvement Fund, and the Designated
Replacement Fund. The purpose of these reserves is
to pay for the replacement of capital infrastructure
and capital purchases.These reserves are not to be used
for the replacement of non-capital items.
With the District’s development of its financial systems
and the greater need and ability to separate and track
reserves, the replacement reserves have been separated
into three funds: water, recycled, and sewer.
Projects undertaken solely for the purpose of replacing
major capital equipment or facilities, i.e., where the
cost exceeds $10,000 for capital purchases or $20,000
for infrastructure items, generally these are not
considered normal maintenance. When the cost is below
$10,000, the costs are financed annually as operational
maintenance. As charges are incurred on replacement
projects the reserves are deducted from the respective
Replacement Funds monthly.
b. Sources
The various funds in this category are financed by debt
proceeds, the “buy-in” portion of the capacity fee, and
general fund designations.
c. Funding Levels
I. Minimum Level – The minimum reserve level of this
category of funds is 3% of the historical value of
existing assets as identified in the District’s
current financial statements. Potable, recycled,
and sewer replacement are evaluated separately.
II. Maximum Level – The maximum reserve level of this
category of funds is 6% of existing assets. If the
Page 30 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
combined replacement reserves exceed target levels,
the District should consider transferring the “buy-
in” portion of the capacity fee to meet other
purposes. Another consideration would be to shift
the timing of replacement projects.
III. Target Level – The target reserve level of this
category of funds is 4% of existing assets. In the
event that the reserves fall below the recommended
target level, the District should consider
transferring the “buy-in” portion of the capacity
fee. The District should also consider shifting
the timing of replacement projects or issuing debt
to support the planned level of facility
replacement. The District will act based on the
annual six-year rate model to ensure that at the
end of that planning horizon the reserves exceed
the minimum level and are approaching the target
level.
Page 31 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Diagram 3.34: Replacement Fund Category
(1) For Water Capacity Fees 68.87.6% goes into the Capital Improvement
Fund. For Sewer Capacity Fees 100% goes into the Capital Improvement
Fund.
3.53.4 Betterment Fund Category
a. Purpose
The Betterment Fund category is to finance the
betterment portion of capital projects with a portion
going to maintenance of the potable, recycled, and sewer
systems. The District maintains separate Betterment
Fund categories, one for each improvement district. An
improvement district is a legally defined geographic
area usually established for the purpose of bond
financing of facilities. The betterment reserves within
Unrestricted and
Undesignated Funding
Sources
Designated
Replacement
Fund
Designated Funds
Replacement
Capital
Improvement
Fund
Restricted Funds
Replacement
Debt Fund Restricted Funds
Restricted Funds
Replacement
Fund
Category
Debt
Proceeds
Capacity
Fees (1)
Funding Source
General Fund – Rates and Charges
Debt Fund Capital
Improvement Fund
Page 32 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
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Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
these funds are restricted by law for use within the
improvement district in which the fees were collected
(Water Code 71631.6). However, the legal restriction of
this reserve depends upon the particular revenue source.
(See Section 2.2 b. for a review of the availability
fees).
When considering the reserve levels of the betterment
category of funds, the following funds work in concert
and must be considered jointly: Betterment Fund, Debt
Fund, Capital Improvement Fund, and Designated
Betterment Fund.
b. Sources
The Betterment Fund category receives restricted
revenues through improvement districts from the
availability fees (the first $10 is unrestricted,
while amounts over $10 are restricted) collected
through the county tax roll. Betterment may also be
financed by debt proceeds, the “buy-in” portion of the
capacity fee, as well as the general fund through a
designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures, the CIP
will move to purely replacement projects. As the
District moves through this lifecycle the need for
betterment reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
betterment category of funds is limited to five
years of unfinanced betterment facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing need must be reduced by the projected
betterment revenues, bond financing, and general
fund designations. If this maximum is exceeded,
then the District should evaluate reductions in the
special water rates and availability fees,
transferring designated reserves to meet other
purposes, or shifting the timing of betterment
projects.
Page 33 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
III. Target Level – The target is six months of
betterment expenditures. It is important that the
betterment reserves remain at a minimum of six
months of betterment expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting betterment
reserves. If the combined betterment reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, or
an adjustment to the timing of betterment projects.
Bond proceeds would be placed in the Betterment
Bond Fund while transfers would be placed in the
Designated Betterment Fund.
Page 34 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Diagram 3.45: Betterment Fund Category
(1) The portion of charges over $10 per parcel is restricted.
(2) For Water Capacity Fees 6768.68% goes into the Capital Improvement Fund. For
Sewer Capacity Fees 100% goes into the Capital Improvement Fund.
Page 35 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Diagram 3.56: Fund
Targets
Fund or Fund
Category
Actions to Consider if
below Target Target Maximum
New Supply Fund
Category
New supply fee
increase, bBond
financing, or transfer to
designated or CIF
Total of all funds in fund
category = six months
of new supply capital
expenditures
Nexus of cost to fee
Expansion Fund
Category
Capacity fee increase,
bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of expansion capital
expenditures
Nexus of cost to feeFive
years unfunded needs
Replacement Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = 4% of
infrastructure
6% of
infrastructureNexus of
cost to fee
Betterment Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of betterment capital
expenditures
Five years unfunded
needs
Debt Reserve Fund Increase tax collection
or rates
One semi-annual
payment
Two semi-annual
payments
Rate Stabilization Fund Fund transfers from
legally available funds
The financial impact of
two consecutive years of
low winter water usage
The financial impact of
three consecutive years
of low winter water
usage
OPEB Fund Fund transfers Full funding Full funding
General Fund
Rate increase or fund
transfers
Three months of
operating budget
expenses
Nine months of
operating budget
expenses
Page 36 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Additional Restricted Funds
4.0 Capital Improvement Fund
a. Purpose
The Capital Improvement Fund’s (CIF) sole purpose is to
track the “buy-in” portion of the capacity fee and to ensure
these fees are expended solely for the purpose for which they
were collected. In this case it is to pay for facilities
that were in existence at the time this fee was established.
These fees may be used for expansion, replacement, or
betterment projects or any debt related to these categories.
The water capacity fees may also be used for either the
potable or the recycled systems. As capacity fees are
collected, the “buy-in” portion of the fee is allocated as
needed to one of three CIFs, one in each of the Expansion,
Replacement, and Betterment Fund categories. These reserves
are used to pay debt or offset any negative balance within
these three categories of funds. For sewer, these fees fund
the Expansion, Replacement, or Betterment Fund categories.
These fees may not be used to finance the New Water Supply
category, as there were no new water supply facilities in
existence at the time the new methodology for capacity fees
was established.
b. Sources
The “buy-in” portion of the capacity fee collected after
June 30, 2010 for water or after September 30, 2014 for
sewer.
c. Funding Levels
There are no minimums, maximums, or target levels for these
reserves on an individual basis. The allocation of this
fee to the various CIFs is dependent on the overall reserve
levels within each fund category.
4.1 Debt Reserve Fund
a. Purpose
The Debt Reserve Fund is established to hold the proceeds
from the various debt issuances. There are two types of
debt, General Obligation bonds and Certificates of
ParticipationRevenue bonds. The proceeds are transferred to
the New Water Supply, Expansion, Replacement, or Betterment
Debt Funds as they are expended for various facilities
within those fund categories. As repayment of the debt
Page 37 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
occurs, the balances within these individual funds are
reduced so that the financial impact of
issuing debt is tracked within the category for which the
debt was issued.
b. Sources
Debt proceeds.
c. Uses
There are no minimums, maximums, or target levels for this
fund on an individual basis. This fund is available on an as
needed basis to fund CIP projects for new water supply,
expansion, replacement, or betterment, or maintain levels
defined within the District’s debt agreements. From a
funding level perspective, these reserves are evaluated in
the context of all the various funds within each fund
category.
4.2 Rate Stabilization Fund
a. Purpose
The Rate Stabilization Fund is established for the purpose of
minimizing rate increases in response to one-time events and
therefore stabilizing the rates and charges imposed by the
District to meet covenanted debt service coverage levels.
The Rate Stabilization Fund is not intended to be used to
offset regular rate increases needed to meet inflationary
cost increases in operations.
b. Sources
The District may budget for Rate Stabilization Fund deposits
from the Sewer Fund, amounts in excess of the annual debt
service coming due and payable in the fiscal year, after
payment of operating expenses. The allowable amount that may
be deposited shall not be transferred prior to payment of the
annual debt service obligation.
c. Uses
There is no minimum level for this fund. The maximum level
shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. The target
level for this fund shall be equal to two (2) consecutive
years of low winter water usage. For the purposes of
calculating debt service, amounts transferred from the Rate
Stabilization Fund to the Sewer Fund will constitute Gross
Page 38 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Revenue in the fiscal year the transfer occurs. All interest
Or other earnings on deposits in the Rate Stabilization Fund
will be withdrawn at least annually and will be accounted for
as operating revenue in the Sewer Fund.
Fund Transfers
5.0 Funding Levels
As described in the preceding sections, the District maintains
reserves for its operating and capital activities. These reserves
can be of three types: 1) undesignated or general use reserves,
2) designated, and 3) restricted for a specific purpose. The
restricted reserves can be restricted geographically and/or by
purpose. The District maintains various funds to track the
various designations and restrictions. The source of the money
for each fund was discussed along with the purpose, source of
funds, and levels. Key characteristics of these funds are the
target levels, minimums, and maximums. The funding levels must
be viewed in the context of the economic environment, political
environment, and in light of the District’s rate model. The
District’s six-year rate model not only shows the current balance
but also shows the trend of the fund balances. Often the trend
of the fund is a greater indicator of financial stability than is
the current balance.
The rate model is updated each year with the budget process and
evaluates each fund over the next six years. The rate model will
take into account the general economic environment, looking at
the development rate, supply rate increases, the possibility of
raising rates, capital infrastructure spending, and strategic
plan initiatives. The fund balances may at times be over or
under the target amount. This is not only acceptable but
expected. The rate model provides an empirical estimate of the
conformance between the projected District’s financial activities
and the guidelines of this policy.
5.1 Fund Transfers
Reserves within the District’s various designated funds come from
interfund transfers of unrestricted general use reserves. It is
important to note that the District has the ability to use
general use reserves for any business purpose. General use
reserves may be transferred to and from any unrestricted fund for
any business need. Designated reserves are general use reserves
which have been set aside for a specific purpose by Board action.
Page 39 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
These reserves can only be used for the purpose they were
designated, or with Board action they may be used for any other
business purpose. While general use reserves may be used for any
restricted purpose, they may not be transferred to Restricted
Funds due to the sensitivity of the tracking of restricted
reserves. If reserves are needed for a restricted purpose, they
are transferred to a Designated Fund within the fund category
with that particular purpose. Reserves restricted to a fund
category may only be used within that category and may not be
transferred to another category. For example, the “incremental”
portion of the capacity fee are restricted reserves for a
specific purpose and may not be transferred to another category
as no other category has the same purpose. However, the “buy-in”
portion of the capacity fees are restricted for purposes that are
shared by more than one category of funds and may therefore be
transferred to a restricted fund within another fund category as
long as it shares the same purpose.
In many situations reserve transfers are expected as some fund
categories will exceed their maximums or drop below their
minimums. Only fund categories that are below the stated target
are eligible to receive transferred reserves. Fund categories
that exceed their maximums are first to be considered for
transfers out, followed by funds that exceed their targets. Funds
that exceed their minimums are also available for reserve
transfers out, but only when other options are not available.
The rationale for prioritizing reserve transfers is based on the
immediacy of the need and the availability of reserves from other
funding sources. For example, the General Fund is first to
receive reserves when it drops below its target or minimum levels.
This is because of the immediate and ongoing nature of the
expenditures that are served by this fund. The operation of the
District is the first and foremost objective of the District. On
the other end of the spectrum, the Replacement Fund has a long-
term perspective and will be used to partially finance replacement
assets for many years to come. Debt financing is available to
respond to this long-term, foreseeable, and planned cash flow.
This fund is less likely to have immediate needs and has other
financing options.
When making the determination of when transfers are necessary, all
funds within a fund category work as a group. The combined
balance of the restricted and designated funds are looked at when
determining whether the fund category requires additional funding
from the Restricted Capital Improvement Fund, Restricted Debt
Page 40 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Fund, or the General Fund. Because the Capital Improvement Fund
may finance expansion, replacement, or betterment, reserves may
be transferred between these fund categories, but only back and
forth within its own type of restricted fund.
As an example, if during the rate model update process it was
determined that the Expansion Funds (designated and restricted)
would drop and stay below the minimum during the six-year
planning horizon, this would trigger a bond saleissuance, a
transfer of general use reserves, and/or a transfer of restricted
reserves.
If in the cash planning process, it was anticipated that the
General Fund would remain above target during the planning
horizon and that the trend did not present a problematic
underfunded status, then General Fund reserves would be
considered available for transfer prior to making proceeds
available from a bond saleissuing debt. Also, if during this
period the Betterment Fund category was anticipated to exceed its
maximum, then reserves from either the Designated Betterment
Fund, or the Capital Improvement Fund would be transferred to the
corresponding Expansion Fund prior to a bond saleissuance. All
funds are evaluated to determine which has the greatest need or
availability of reserves before any reserve transfer
recommendation is presented to the Board.
Page 41 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
GLOSSARY
The Reserve Policy contains terminology that is unique to public
finance and budgeting. The following glossary provides assistance
in understanding these terms.
Annexation Fees: When water service is requested for land outside
the boundaries of the District, the land to be serviced must first
be annexed. For sewer service the land must be annexed into an
improvement district within the District.
Assets: Resources owned or held by Otay Water District that
have monetary value.
Availability Fees: The District levies charges each year in
developed areas to be used for upgrades, betterment, or
replacement and in undeveloped areas to provide a source of
funding for planning, mapping, and preliminary design of
facilities to meet future development. Current legislation
provides that any availability charge in excess of $10.00 per acre
shall be used only for the purpose of the improvement district for
which it was assessed.
Bond: A written promise to pay a sum of money on a specific date
at a specified interest rate. The interest payments and the
repayment of the principal are authorized in a District bond
resolution. The most common types of bonds are General Obligation
(GO) bonds and Certificates of Participation (COPs). These are
frequently used for construction of large capital projects such as
buildings, reservoirs, pipelines and pump stations.
Capital Equipment: Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments, etc. which
have a life expectancy of more than two years and a value over
$10,000.
Capital Improvement Program (CIP): A long-range plan of the
District for the construction, rehabilitation and
modernization of the District-owned and operated
infrastructure.
Page 42 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
CWA: The County Water Authority was organized in 1944 under the
State County Water Authority Act for the primary purpose of
importing Colorado River water to augment the local water supplies
of the Authority's member agencies. The Authority purchases
water from the Metropolitan Water District of Southern California
(MWD) which imports water from the Colorado River and the State
Water Project.
Debt Service: The District's obligation to pay the principal and
interest of bonds and other debt instruments according to a
predetermined payment schedule.
Expenditures/Expenses: These terms refer to the outflow of funds
paid or to be paid for an asset, goods, or services obtained
regardless of when actually paid for. (Note: An encumbrance is
not an expenditure). An encumbrance reserves funds to be expended
in a future period.
Fund: An account used to track the collection and use of monies
for a specifically defined purpose.
Fund Balance: The current funds on hand resulting from the
historical collection and use of monies. The difference between
assets and liabilities reported in the District’s Operating Fund
plus residual equities or balances and changes therein, from the
results of operations.
Interest Income: Earnings from the investment portfolio. Per
District Policy Number 25, interest income will be allocated to
the various funds each month based upon each fund’s prior month-
ending balance.
Late Charges/Penalties: Charges and penalties are imposed on
customer accounts for late payments, returned payments, and other
infringements of the District’s Code of Ordinances.
1% Property Tax: In 1978, Proposition 13 limited general levy
property tax rates for all taxing authorities to a total rate of
1% of full cash value. Subsequent legislation, AB 8, established
that the receipts from the 1% levy were to be distributed to
taxing agencies according to approximately the same proportions
received prior to Proposition 13.
Page 43 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
511/43/
203
Operating Budget: The portion of the budget that pertains to
daily operations that provide basic governmental services. The
operating budget contains appropriations for such expenditures as
personnel, supplies, utilities, materials, travel and fuel, and
does not include purchases of major capital plant or equipment
which is budgeted for separately in the Capital Budget. The
Operating Budget also identifies planned non-operating revenues
and expenses.
Revenue: Monies that the District receives as income. It
includes such items as water sales and sewer fees. Estimated
revenues are those expected to be collected during the fiscal
year.
Russell Square: A sewer lift station constructed in 1983 that
serves four properties in the Russell Square Development.
System Fees: Each water service customer pays a monthly system
charge for water system replacement, maintenance, and operation
expenses. The charge is based on the size of the meter and class
of service.
Tax Collection for Bond Debt: California Water Code Section 72091
authorizes the District, as a municipal water district, to levy ad
valorem property taxes which are equal to the amount required to
make annual payments for principal and interest on General
Obligation bonds approved by the voters prior to July 1, 1978.
Unit: A Unit of water is 100 cubic feet or 748 gallons of water.
Water Rates: Rates vary among classes of service and are measured
in Units. The water rates for residential customers are based on
an accelerated block structure. As more Units are consumed, a
higher Unit rate is charged. Effective in 2009, all non-
residential customers are charged for water based on a tiered rate
structure in which water rates are based on meter size and amount
of Units consumed.
Page 1 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.0 The District
The Otay Water District is a California municipal water district,
authorized in 1956 by the State Legislature under the provisions
of the Municipal Water District Act of 1911. The District is a
"revenue neutral" public agency; meaning each end user pays their
fair share of the District's costs of water acquisition,
construction of infrastructure, and the operation and maintenance
of the public water facilities.
The District provides water service within its boundaries, and
provides sewer and recycled water service within certain portions
of the District. As such, the District operates three distinct
business segments:
•Potable water
•Recycled water
•Sewer
Each of these business segments has an identifiable customer base.
In addition, the developer community, large and small, makes up a
significant class of customers for each business segment. As a
result, the District has four distinct customer service types:
•Developers
•Potable water users
•Recycled water users
•Sewer users
The District has established practices and developed computer
systems that have enabled the District to maintain a clear
separation between the service costs relating to each of its four
customer service types. Regardless of customer class, financial
principles regarding cost allocation and fund accounting are
fundamental to the District’s Reserve Policy. These principles
are derived from the statements of the Governmental Accounting
Standards Board (GASB), and from oversight and advisory bodies
such as the California State Auditor, the Little Hoover
Commission, and the Government Finance Officers Association
(GFOA). These principles have significant impacts on how the
finances of the District are organized and how financial processes
work within the organization.
Exhibit 2
Page 2 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.1 The District’s Use of Financial Resources
All the District’s expenditures fall into two broad categories:
operating costs and capital expenditures. The operating costs
include costs relating to the purchase and delivery of potable and
recycled water, and the transportation and treatment of sewage.
The capital expenditures support the construction of
infrastructure necessary to deliver services. The District uses
various funds to support the operating and capital efforts.
Operations and maintenance are financed only by rates and charges,
also called pay-as-you-go, while capital infrastructure is
financed using two financing methods: pay-as-you-go and debt
issuance (requiring annual debt service). The Capital Improvement
Program (CIP) and the two funding methods support the
construction, betterment, and replacement of infrastructure in all
three business areas: potable, recycled, and sewer.
The District establishes different funds to track revenues
allocated to different activities. Once established, each fund
receives financial resources up to the levels defined in this
policy. Every year, as a part of the annual budget process, the
District’s rate model is updated for each fund with the current
fund balances and the estimated revenues and expenditures for the
next six years. The expenditure requirements and financial
resources are then evaluated to ensure that the existing fund
balances and additional revenues are sufficient within the current
budget cycle and for the next five years to maintain target fund
levels. If a deficit is identified, then options for transfers,
shifting CIP projects, debt issuance(s), cost saving measures,
and/or rate increases are evaluated.
1.2 The District’s Capital Improvement Program (CIP)
The planning, design, and construction costs of all capital
facilities within the three business segments are allocated to
four cost types and corresponding fund categories: New Water
Supply, Expansion, Replacement, and/or Betterment. The allocation
to these four cost types is defined in the District’s Capital
Improvement Program (CIP) and is determined by an engineering
analysis that identifies which type of customer will benefit from
each facility, planned or existing. The costs of the capital
improvements are borne by either existing users or by the
developing areas, or by a combination of the two, as applicable.
Page 3 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
This Reserve Policy protects both the existing users and the
developing areas from incurring unwarranted costs. Developing
areas are not required to finance facilities that are replacement
or betterment and established areas are not required to replace
facilities before they are worn out because of new development.
However, to ensure a fair allocation of costs, each facility has
the potential to be classified into any or all of the four cost
types. In addition to these cost types, there are occasional CIP
projects that may be billable to a third party, if for example a
third party requires a District facility be relocated.
Paragraphs a through d, which follow, describe how the costs of
capital facilities are financed through various fees.
a. New Water Supply
The portion of a new supply project that benefits new users
is financed from the reserves in the New Water Supply Fund
category. These reserves were primarily derived from
proceeds of the new water supply fee. The New Water Supply
Fund is restricted, meaning the amounts credited to this fund
are accounted for separately and are used solely for the
planning, design, and construction of new water supply
expansion facilities. Debt financing may also be a temporary
financial resource to finance new water supply projects. The
District has a Debt Policy (Policy No. 45) that guides the
debt issuance process. Any debt proceeds used for this
purpose would be restricted in nature and tracked separately.
General use reserves may also be placed in the designated New
Water Supply Fund and used for water supply projects.
Effective December 1, 2020, new water supply fee collection
was discontinued. The New Water Supply Fund will continue to
be used to fund qualified projects and to pay the
proportionate share of debt service for new water supply
projects until the monies in the fund are fully depleted.
b. Expansion
The portion of a CIP project that benefits new users is
financed from the reserves in the Expansion Fund category.
These reserves are primarily derived from proceeds of the
“incremental” portion of the capacity fees collected within
developing areas. Capacity fees are accounted for
separately and used for the planning, design, and
construction of expansion facilities. Additionally,
expansion may be financed by the “buy-in” portion of the
capacity fee, which is restricted for CIP purposes, but not
Page 4 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
specifically for expansion. Debt financing can be a
temporary financial resource for expansion projects. General
use reserves may also be placed in the designated Expansion
Fund and used for expansion projects.
c. Replacement
The portion of a CIP project that benefits existing users by
replacing an existing facility is financed from the reserves
in the Replacement Fund category. Replacement of facilities
may be financed with proceeds from the “buy-in” portion of
the capacity fees, general use reserves held in the
designated Replacement Fund, and/or debt proceeds. The
various funding sources available for replacement projects
are anticipated to provide the necessary flexibility to begin
projects while any necessary debt financing is being
obtained.
d. Betterment
Facilities that improve reliability, meet new regulations, or
create increased levels of service are considered betterment
facilities that benefit existing users. The reserves in the
Betterment Fund category are used to finance these projects
or portions of projects. Proceeds of the “buy-in” portion of
the capacity fees may also be used to finance betterment
projects. General use reserves may be placed in the
designated Betterment Fund and used for betterment projects.
1.21 Relocations
Occasionally, a third party requires relocation of a District
facility. If the District has a superior easement the third
party will pay the relocation cost, but only to the extent that
the District does not benefit from the relocation. When
relocation is required, a CIP project may be created which is
wholly or partially financed by a third party. On occasion, the
District will require that its own facilities be relocated.
Depending on the nature of the facilities, the financial resources
for these projects could be from new water supply, expansion,
replacement, betterment, and/or third-party financing. Each
project is individually negotiated with the third party based on
the facts and circumstances of the relocation. Occasionally, the
District will improve the facilities that are being relocated.
When determining how to allocate costs to various funds the
following guideline is suggested: if a project has more than five
years of useful life remaining, an incremental cost view should
Page 5 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
be considered; if the project has less than five years of useful
life remaining, a pro-rata cost approach should be considered.
Also, the likelihood that the District will benefit from an
asset’s life extension should be evaluated prior to allocating
costs.
1.22 Oversizing
If deemed reasonable by the District, in connection with the
construction of backbone facilities, a developer may be required
to oversize new facilities for future development. The developer
is reimbursed for incremental oversizing costs as per Policy
No. 26. These reimbursements are not available for the
distribution system within a development which is an obligation
of the developer.
1.23 Exclusion of Developed Areas from Expansion Costs
Developed areas are assumed to have sufficient supply and capacity
to meet their current requirements as provided by the developers.
In addition, they are considered to have borne capital financial
costs that are at least proportionate to the benefits they have
received from capital facilities. Accordingly, no regional
capital financing costs are allocated to these areas so that they
will not incur any costs for newly developing areas, except for
capital projects that produce district-wide benefit or cost
savings.
1.24 Improvement Districts (IDs)
Improvement Districts (IDs) are established to facilitate the
financing of particular improvements by the specific
beneficiaries. The District has a number of IDs that were
established for General Obligation (GO) debt repayment. All GO
debt has been paid off and it is unlikely that the District will
issue additional GO debt. IDs continue to be used for other
purposes: 1) to distinguish sewer customers from water customers
on the county tax roll; or 2) to place parcels on the county tax
roll for the collection of availability fees.
Over the years, the District moved to a district-wide perspective
of financing improvements. This philosophy is evident by the
district-wide capacity and annexation fees. The District also
uses district-wide water rates. As time goes on, it is expected
that IDs will continue to outgrow their purpose and their use will
diminish.
Page 6 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
1.3 The Purpose of the Policy
Public entities accumulate and maintain reserves to ensure both
financial stability and continuous availability of services.
Financial stability and the resulting improved credit quality
allow the public entity to weather times of uncertainty and the
impact of negative events, both major and minor. Reserves allow
for the ongoing maintenance of property and timely payment of
expenses, even when such expenses exceed money available from a
single fiscal period. Ultimately, the type and level of
reserves are driven by the type and magnitude of uncertainty
faced by the public entity.
A “reserve” has a number of functions, as follows:
• Working capital is required to ensure timely payment of
obligations.
• A buffer against volatility in revenues.
• Liquidity is required to obtain other goods and services
(e.g., bank services).
• Designated money to protect creditors.
• Money set aside to replace assets at the end of their useful
lives.
• Money set aside to repair or replace assets damaged or
destroyed at unanticipated times.
It is important to note that reserves, fund balance, and net
assets are not the same. Fund balance and net assets are
accounting terms and may not always be in the form of cash or
liquid investments. Fund balances and net assets may not always
be reserves unless a designation of all or a portion of fund
balance is made. In addition, the term fund balance was replaced
by net assets as codified by the Governmental Accounting Standards
Board (GASB).
In short, reserves are the liquid assets of the District,
accumulated and maintained for application to finance contingent
future activities, whether known or unanticipated, operating or
capital in nature. The District’s Reserve Policy governs the
management and use of these financial resources. Few policies
have a more significant impact on the financial health and
stability of the District. This policy explains several key
Page 7 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
financial concepts used by the District and provides some
background information on the overall strategies and practices
utilized. The District has a fiduciary obligation to its
customers, to manage and direct the use of public funds for the
purpose of providing water and sewer services in an efficient and
financially sound manner.
1.4 Policy Guidelines
In 2000, the Little Hoover Commission reviewed the levels of
reserve funds for special districts in California and prepared a
report reflecting that special districts were accumulating
unreasonable levels of funds. As a proactive response, the
California Special Districts Association (CSDA) prepared Reserve
Guidelines for its members. The Reserve Guidelines were
significant in noting that reserve levels need to be in context of
the organization’s overall business model and capital improvement
plan.
There are a number of potential events which the District should
consider in the development of reserves:
• Economic Uncertainty - performance of the regional economy
and the impact of that performance on demand for water.
• Weather - the amount of rainfall and the impact of weather on
the availability and cost of water as well as the demand for
water.
• Government Mandates - the impact of federal and state
regulations, particularly environmental regulations.
• Tax Changes - limitations on the District’s taxing and
spending powers through the passage of a voter referendum,
the impound of District property taxes, the removal of the
District’s power to levy property taxes, further increases to
Educational Revenue Augmentation Fund (ERAF) contributions,
or changes in calculation methodology.
• Operating Costs - increases in operating and maintenance
costs because of inflation, labor agreements, or other
modifications.
• Force Majeure - unanticipated expenditures resulting from
natural disasters or intentional acts.
Page 8 of 39
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Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
• Emergency Maintenance - unanticipated expenditures resulting
from unexpected failure of assets (e.g., rupture in the
primary transmission system).
• Unexpected Variation in Cash Flow - the incidence of
additional costs or decreased revenues that require short-
term borrowing in the absence of sufficient financial
resources.
The California State Auditor has, in its oversight role, offered a
number of quality recommendations for the development of reserve
policies as outlined in its report entitled, “California’s
Independent Water Districts: Reserve Amounts Are Not Always
Sufficiently Justified, and Some Expenses and Contract Decisions
Are Questionable,” dated June 2004, Report No. 2003-137. All of
these recommendations have been incorporated into this policy in
an effort to address key issues surrounding the management and use
of District reserves. The detailed objectives as identified by
the State Auditor are as follows:
• Distinguish between restricted and unrestricted reserves.
• Establish distinct purposes for all reserves.
• Set target levels, including minimums and maximums, for the
accumulation of reserves.
• Identify the events or conditions that prompt the use of
reserves.
• Conform to plans to acquire or build capital assets.
• Receive Board approval and that it is in writing.
• Require periodic review of reserve balances and rationale for
maintaining them.
Yet, the State Auditor’s report acknowledges that the California
Constitution (Article XIII B, Section 5) is vague in its
provisions governing the accumulation and use of reserves.1
1 California State Auditor, Bureau of State Audits, “California’s Independent Water Districts: Reserve Amounts Are
Not Always Sufficiently Justified, and Some Expenses and Contract Decisions Are Questionable,” dated June 2004,
2003-137; p. 8.
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OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Specifically, the Constitution states that “each entity of the
government can establish contingency, emergency, unemployment,
reserve, sinking fund…or similar funds as it shall deem reasonable
and proper.”2 Similarly, the State’s Water Code does not impose
any requirements as to specific or recommended reserve fund
levels. As a result, the public finance community has yet to
settle on any real objective standards for the level of reserve
funds appropriate for governmental enterprises. This lack of
consensus as to specific standards is indicative of the wide
variance of the financial and operations context for different
districts and different contingencies justifying reserves.
The Government Finance Officers Association (GFOA) in its
“Recommended Practice on Appropriate Level of Unreserved Fund
Balance in the General Fund” (2002) states that in
establishing a policy governing the level of unreserved fund
balance in the general fund, a government should consider a
variety of factors. These include:
• The predictability of its revenues and the volatility of
its expenditures (i.e., higher levels of the unreserved
fund balances may be needed if significant revenue
sources are subject to unpredictable fluctuations or if
operating expenditures are highly volatile).
• The availability of resources in other funds as well as
the potential drain upon general fund resources from
other funds (i.e., the availability of resources in
other funds may reduce the amount of the unreserved fund
balance needed in the general fund, just as deficits in
other funds may require that a higher level of
unreserved fund balance be maintained in the general
fund).
• Liquidity (i.e., a disparity between when financial
resources actually become available to make payments and
the average maturity of related liabilities may require
that a higher level of resources be maintained).
• Designations (i.e., governments may wish to maintain
higher levels of the unreserved fund balance to
compensate for any portion of unreserved fund balance
already designated for a specific purpose).
2 California Constitution, Article XIII B, Section 5.
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OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
In the preparation of this policy, each of the CSDA guidelines and
the GFOA recommendations have been considered. In addition, all
seven objectives provided by the State Auditor are specifically
addressed for each reserve. The District wholly supports the
State Auditor’s efforts to bring a high-level of quality to
reserve governance and establish a standard of performance.
The District recognizes that the customer pays for services
provided. Quality management requires that periodic valuations be
performed so that fees and charges can be set at appropriate
levels to recover the cost of service. The District’s Reserve
Policy has been drafted with consideration of the GFOA, CSDA, and
State Auditor’s general guidelines as provided above.
Additionally, the District has adopted the following principles in
the management of its financial resources:
• Reserves are held and used only for the purpose for which
they are collected. This is done to maintain equity among
customers.
• Each of the service types is tracked separately so that
expenditures and revenues can be monitored and evaluated for
each customer type. This provides the District with the
necessary information to appropriately charge for each of the
services.
• Separation of operations and maintenance from capital
expenditures occurs within each of the service types. This
is done because the financing of these expenditures is often
on different timelines or use different reserves.
• The District will hold its reserves at responsible and
prudent levels. This policy sets minimum, maximum, and
target levels for each of the various funds. This has been
done so that the District can maintain reserves to meet the
purpose for which the funds were established. The levels are
set by reference to line items in the District’s financial
statements and approved budgets. This allows reserve levels
to adjust to the District’s changing financial circumstances.
• Debt financing of facilities provides intergenerational
equity and maintains rates at reasonable levels. This equity
is accomplished with long-term financing which spreads the
cost of facilities over the life of the facilities. The
burden to pay for facilities is then paid by those who use
Page 11 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
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Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
them. The District could amass significant reserves by pre-
collecting financial resources in a Replacement Reserve Fund
allowing the District to cash finance all replacements.
However, this would require significant rate increases
burdening the current customers and creating reserve levels
difficult to defend to the ratepayers or other oversight
entities.
These concepts are fundamental to the way the District manages its
funds and have a direct impact on the way rates and charges are
set. The District performs annual budget evaluations and updates
its rate model on an annual basis to monitor and adjust the
various funds, expenditures, and revenue sources. The separation,
tracking, and projecting of the various funds, expenditures, and
revenue sources create the essential information necessary for the
equitable rate structure maintained by the District. The annual
review preserves the balance between services provided and the
fees charged. This review also ensures that reserves will be
available to continue to serve the District’s customers.
Financial Sources
2.0 Developers
a. Meter Installation Charges (General Use)
Meter fees are charges collected for new water service
connections. Fees vary depending upon meter size and type of
service. The costs associated with meter installations are
included in the Operating Expenses section of the budget.
Developers finance these charges.
b. Developer Deposits (General Use)
These deposits are for the engineering and operations
services provided to developers. They are tracked separately
for each developer and any excess amount is returned to the
developer.
c. Water Annexation Fees (General Use)
Annexation fees3 are collected as a condition of annexing
into the District’s potable or recycled water facilities.
Since the existing facilities have been built and maintained
by developers or customers within the District, the
annexation fee is calculated based on the present value of
all property taxes (1% property tax and availability fees)
3 Otay Water District Code of Ordinances, Section 9.
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Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
paid by existing and prior customers. The annexation fee
reimburses existing customers for past contributions so that
all customers have contributed more equally to water
facilities. Proceeds of annexation fees are unrestricted and
may be used for any general fund purpose.
d. Sewer Annexation Fees (General Use)
A sewer annexation fee is collected when property is annexed
into an improvement district (ID). Since the existing
facilities have been built and maintained by developers or
customers within a sewer ID, the annexation fee is calculated
based on the present value of all availability fees paid by
existing and prior customers. The annexation fee reimburses
existing customers for past contributions so that all
customers have contributed more equally to sewer facilities.
Proceeds of the annexation fees are unrestricted and may be
used for any general fund purpose.
e. Water Capacity Fees (Restricted)
Water capacity fees4 are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated with
expansion, replacement, or betterment of facilities. The
“buy-in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities (excluding new water
supply expansion).
f. Sewer Capacity Fees (Restricted)
Sewer capacity fees are based on the value of existing and
future facilities divided by the number of existing and
future equivalent dwelling units. This method of calculating
capacity fees is called the combined method, where the “buy-
in” portion of the capacity fee covers costs to repay
4 Otay Water District Code of Ordinances, Section 28
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OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
existing customers for the facilities that they have built,
and where the “incremental” portion of the capacity fee
covers the cost of future expansion facilities. The “buy-in”
portion of the capacity fee is restricted to pay for
planning, design, construction, and financing associated
with expansion, replacement, or betterment of facilities.
The “buy-in” portion may be shifted back and forth between
expansion, betterment, or replacement as the financing needs
change. The “incremental” portion of the capacity fee is
limited to planning, design, construction, and financing
exclusively for expansion facilities. For parcels within a
sewer ID the calculation excludes the tax debt already paid
by these customers, therefore producing a lower fee than for
parcels outside of a sewer ID. The capacity fees are
restricted to pay for planning, design, construction, and
financing associated with the expansion, replacement, or
betterment of facilities.
Facility needs are based on projected land use planning.
Changes in anticipated future land use occur and can alter
projected facility requirements. Thus, both the anticipated
facilities’ needs and their projected costs change over time as
regulatory agencies make changes to land use. The District
periodically reviews the capacity fee calculation to
accommodate such variations. These fees are paid by developers.
The District’s construction of infrastructure occurs prior to the
addition of EDUs. This sequence serves two purposes: 1) it
ensures that the District can serve the pending construction as it
is completed; and 2) it is more efficient to oversize many
facilities at the outset rather than build for the current need
and then reconstruct when the future need is realized. As a
result of this strategy, the District has financed construction
with bond financing as the existing expansion reserves are
depleted.
The water capacity fee is calculated based on the combined
recycled and potable water systems’ needs. This methodology is
used because the two water systems work hand-in-hand. All
capacity fees can be used for either potable or recycled but must
be tracked to distinguish between the “buy-in” and “incremental”
portions as described above. So, while capacity fees are not
restricted separately by potable and recycled, they are tracked
separately.
Page 14 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 2.0: Flow of Funds - Developer Sources
2.1 Customers/Users
a. Uniform Rates and Charges (General Use)
Charges to users for water, sewer, and recycled water are
uniform throughout the District for similar customer types.
b. Monthly System Fees (General Use)
This is a fixed revenue source that is charged monthly. The
amount of the charge is based on the customer class and
meter size.
c. Energy Charges (General Use)
The energy pumping fee is a charge per unit of water for each
100 feet of lift, or fraction thereof, above the base
elevation of 450 feet. This charge is placed on the
monthly water bills of all water customers.
d. Penalties (General Use)
Penalties are added to the monthly water and sewer bills for
late charges, locks, etc.
e. Pass-through Fixed Charges (General Use)
A fixed monthly charge to the District’s customers intended
to collect sufficient funds to pass-through the increased
fixed costs from the County Water Authority (CWA) and the
Metropolitan Water District (MWD).
Meter
Installation
Charges
Developer
Deposits Annexation
Fees
Capacity
Fees
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
DEVELOPERS
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OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
f. Special Rates and Charges (General Use)
In addition to the uniform water and sewer charges, the
District has a special sewer rate for the Russell Square lift
station. The Russell Square fee is for construction,
installation, maintenance, or repair of the Russell Square
lift station. This fee is collected in accordance with the
Russell Square sewer charge. (See Code of Ordinances
Section 53.03B.)
g. Special Rates and Charges (Restricted)
In addition to the uniform water charges, the District has a
special rate charged to outside and interim users. Outside
and interim users are charged an additional fee for
temporary capacity. The fee is collected in accordance with
outside and interim service agreements. (See Code of
Ordinances Section 25.)
Diagram 2.1: Flow of Funds - Customer Sources
2.2 County-Collected Taxes and Fees
a. General Levy Property Tax Receipts (1% Property
Tax) (General Use)
In 1978, Proposition 13 limited the levy of ad valorem
property taxes on real property to one percent of the
assessed value of such property. Subsequent legislation,
AB 8, established that the receipts from the one percent levy
were to be distributed to taxing agencies proportionate to
Uniform Rates
and Charges
Monthly
System Fees
Energy
Charges
Special Rates
and Charges
Pass –Through
Fixed Charges Penalties
Special Rates
and Charges
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
CUSTOMERS / USERS
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Adopted
2/10/93
Date
Revised
5/3/23
each agency’s general levy receipts prior to Proposition 13.
Taxes received are for general use. Spending limits for the
District are governed by the 1979 passage of California
Proposition 4, Limitations of Government Appropriations (GANN
limit). Proposition 4 places an appropriation limit on most
spending from tax proceeds.
b. Availability Charges (General Use/Restricted)
The District levies availability charges each year in
developed and undeveloped areas. Current legislation
provides that any amount up to $10 per parcel is general use
and any amount over $10 per parcel is restricted to being
expended in and for the improvement district (ID) within
which it is collected. Accordingly, the District may use
availability charges in excess of $10 toward costs of water
and sewer facilities which are either, expansion,
betterment, or replacement of facilities consistent with the
purpose of the ID in which they are collected. This portion
of the proceeds of availability charges is geographically
restricted and restricted by purpose. As costs are incurred
on these projects the respective IDs are charged, reducing
the reserves. To the extent that availability charges are
not used for the purpose for which they are collected, they
must be returned to the property owners that paid them. The
District has historically used these reserves for the
betterment of capital facilities thus, the restricted
reserves are accounted for in “sub-funds” of the Betterment
Fund (See 2.1 f.).
c. Improvement District General Obligation (GO) Bond
Assessments (Restricted)
The District has historically issued general obligation
(GO) debt and established an ID for the repayment of that
debt. When this financing method is used, the county tax
roll can be used to collect special taxes or assessments
within the ID to pay the debt obligation. The proceeds of
the debt are restricted for the purpose as defined in the
bond documents.
Page 17 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
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RESERVE POLICY
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Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 2.2: Flow of Funds – County Collection Sources
2.3 Miscellaneous Income
a. Miscellaneous Rents and Leases (General Use)
Revenues received from the rental and lease of District
property are general use revenues. Not only are these
periodic revenues, but there is also a one-time fee charged
with the setup of each new lease. The District incurs
expenses related to these rents and leases. The one-time
fees are calculated to recover the costs of setting up the
leases.
b. Sewer Billing Fees (General Use)
Sewer billing fees are general use revenues. The District
provides processing and billing services to the City of Chula
Vista and bill and collect from their customers for sewer
service. These fees are to recover the cost the District
incurs to provide this service.
c. Interest Income or Expense Allocation (General Use,
Designated, and Restricted)
Interest income (expense) will be allocated every month based
upon each fund's month-ending balance. In this way, each
fund receives credit for interest earned by that fund and
each fund with a negative balance is charged for the use of
the other fund’s reserves.
General Levy
Property Tax
Receipts
Availability
Charges General Obligation
Bond Assessments
Unrestricted and
Undesignated
(General Use)
Funds
Restricted Funds
COUNTY COLLECTED TAXES AND FEES
Page 18 of 39
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Number
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Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 2.3: Flow of Funds – Miscellaneous Income Sources
2.4 Debt Issuance
a. Loans (General/Restricted Use)
As the District determines that additional financing is
required for a particular purpose, the option of borrowing is
considered. The determination to borrow is made as a part of
the annual rate model update and is evaluated in accordance
with the Debt Policy before it is recommended to the Board
for action. As an option to bond indebtedness, loans are
available to satisfy short-term financing needs. These loans
may or may not be contractually restricted for a particular
purpose.
b. General Obligation (GO) Bonds (Restricted)
As the District becomes more developed it becomes less likely
that general obligation debt will be used as it requires a
vote of the public to be approved. Bond proceeds are
restricted for the construction of those facilities
identified in the GO bond issuance. Occasionally, specific
portions of bond proceeds may be allocated for the repayment
of the principal and interest, also called debt service, on
these bonds. As the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue
debt is made as a part of the annual rate model update and
is evaluated in accordance with the Debt Policy before it is
recommended to the Board for action.
Miscellaneous
Rents and Leases
Sewer Billing
Fees
Interest Income or
Expense Allocation
Restricted Funds
Designated Funds
Unrestricted and
Undesignated
(General Use) Funds
MISCELLANEOUS INCOME
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Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
c. Revenue Bonds (Restricted)
General revenues of the District are pledged as security for
Revenue Bonds (previously Certificates of Participation)
indebtedness. If the District determines that additional
financing is required for a particular purpose, the option of
debt issuance is considered. The determination to issue
debt is made as a part of the annual rate model update and
is evaluated in accordance with the Debt Policy before it is
recommended to the Board for action. This form of financing
has become the industry’s preferred form of financing as it
does not require a vote of the general public.
Diagram 2.4: Flow of Funds – Debt Issuance Sources
2.5 Inter-fund Transfers
Each year in the budgeting process, future fund balance
levels are projected for the next six years. Based on these
projections, transfers are recommended. Reserves may be
transferred between Unrestricted or Designated Funds and the
General Fund (see 4.0 “Funding Levels” and 4.1 “Fund
Transfers”). Reserves may not be transferred to or from any
of the Restricted Funds unless it is between two restricted
funds with a shared purpose.
Loans General
Obligation Bonds
Revenue
Bonds
Restricted Funds
Unrestricted and
Undesignated
(General Use) Funds
DEBT PROCEEDS
Page 20 of 39
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RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Fund Types and Categories
3.0 General Funds
a. Purpose
The General Fund is neither restricted nor designated. The
District maintains one General Fund for each business
segment (water, sewer, and recycled). This fund holds the
working capital and emergency operating reserves. While
the General Fund has a short-term focus to finance the
District’s annual operations, it is supported by the six-
year rate model. This fund is primarily used to finance the
operations of the District; however, it can be used for any
District purpose.
This fund can be used to supplement the District’s rates and
charges and be a temporary source of revenue to balance the
Operating Budget. This fund can also be used to avoid
spikes in the rates or significant and abrupt increases. It
is an industry practice to have a fund that can be used to
stabilize rates. This would only occur if there was a
temporary need to use reserves to smooth out a rate spike or
to ramp up what would otherwise be a dramatic rate increase.
The General Fund also plays a role in the debt planning of
the District. This fund is viewed by the debt markets as a
commitment by the District to ensure financial stability of
the rates and charges of the District. The District is
anticipated to need a number of debt issuances over the years
and this fund will help the District not only to stabilize
rate fluctuations but also to access low cost financing for
future projects.
b. Sources
The potable and recycled general funds receive meter
installation charges, special rates and charges, uniform
rates and charges, monthly system fees, energy charges,
penalties, pass-through fixed charges, general levy property
tax receipts, water annexation fees, availability charges,
miscellaneous rents and leases, sewer billing fees, interest
income or expense allocation, and loans.
The sewer general fund receives sewer charges, penalties,
availability charges, sewer annexation fees, and interest
income or expense allocation.
Page 21 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
c. Funding Levels
I. Minimum Level – The minimum reserve level for
each business segment of the General Fund is
three months of operating budget expenses
(evaluated separately for each segment).
II. Maximum Level – The maximum reserve level for the
General Fund is nine months of operating budget
expenses. In the event that this fund exceeds the
seven-month level, the excess will be evaluated or
transferred to one or more of the designated funds.
III. Target Level – The target level of reserves is
three months of operating budget expenses. In the
event that the fund drops below the target level,
rate increases or fund transfers would be
considered.
3.1 New Water Supply Fund Category
a. Purpose
The New Water Supply Fund category is to finance the
expansion portion of new water supply projects and is
therefore to be paid by developers. When considering the
reserve level of the New Water Supply category; the New Water
Supply Fund, the New Water Supply Debt Fund, and the
Designated New Water Supply Fund all work in concert and must
be considered jointly.
b. Sources
The New Water Supply Fund received reserves only from the new
water supply fee. Other funds within the new water supply
category of funds received debt proceeds and general use
reserves through a designation to this category. Effective
December 1, 2020, the new water supply fee collection was
discontinued. The New Water Supply Fund will continue to be
used to fund qualified projects and to pay the proportionate
share of debt service of new water supply projects until the
monies in the fund are fully depleted.
Page 22 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.1: New Water Supply Fund
3.2 Expansion Fund Category
a. Purpose
The Expansion Fund category is to finance the expansion
portion of capital projects and therefore is to be paid for
by developers. When considering the reserve levels of the
expansion category, the following funds work in concert and
must be considered jointly: Expansion Fund, Expansion Debt
Fund, Capital Improvement Fund, and the Designated Expansion
Fund. Potable and recycled reserves are considered jointly
while sewer is evaluated separately.
b. Sources
The Expansion Fund is financed by the “incremental” portion
of the capacity fee and restricted special rates and
charges. The other funds in this category may also be
financed by debt proceeds, the “buy-in” portion of the
capacity fee, and the general fund through a designation of
reserves.
Unrestricted and
Undesignated Funding
Designated
New Water
Supply Fund
Designated Funds
Expansion
New Water
Supply Fund
New
Water
Supply
Debt Fund
New Water
Supply Fund
General Fund – Rates and Charges
Debt Fund Restricted Funds
Restricted Funds
Restricted Funds
Page 23 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
c. Funding Levels
I. Minimum Level – As the District matures, the
CIP will move to purely replacement and
betterment projects. As the District moves
through this life cycle the need for expansion
reserves will decrease and may be reduced to
zero.
II. Maximum Level – The maximum reserve level for the
expansion category of funds is limited to five
years of unfinanced expansion facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing needs must be reduced by the projected
expansion revenues, bond financing, and any
restricted or general fund revenues allocated to
this fund category. If the combined expansion
reserves exceed target levels, the District should
consider reducing capacity fees, reallocating
restricted or designated funds to meet other
purposes, or shifting the timing of expansion
projects.
III. Target Level – The target level is six months of
expansion expenditures. It is important that the
expansion reserves remain at a minimum of six
months of expansion expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting expansion
reserves. If the combined expansion reserves
drop below six months of expenditures this would
trigger a transfer of general use reserves, a
bond sale, an adjustment to the timing of
expansion projects, or a reallocation of
restricted reserves. Bond proceeds would be
placed in the Restricted Bond Fund, transfers of
general use reserves would be placed in the
Designated Expansion Fund, and transfers of
restricted reserves would be placed in the
Expansion Capital Improvement Fund.
Page 24 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.2: Expansion Fund Category
(1) For Water Capacity Fees 31.2% goes into the Expansion Fund and 68.8% goes into the
Capital Improvement Fund. For Sewer Capacity Fees 100% goes into the Capital
Improvement Fund.
Page 25 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
3.3 Replacement Fund Category
a. Purpose
The Replacement Fund category is to finance replacement
projects. When considering the reserve levels of the
replacement category of funds, the following funds work
in concert and must be considered jointly: Debt Fund,
Capital Improvement Fund, and the Designated
Replacement Fund. The purpose of these reserves is
to pay for the replacement of capital infrastructure
and capital purchases.These reserves are not to be used
for the replacement of non-capital items.
With the District’s development of its financial systems
and the greater need and ability to separate and track
reserves, the replacement reserves have been separated
into three funds: water, recycled, and sewer.
Projects undertaken solely for the purpose of replacing
major capital equipment or facilities, i.e., where the
cost exceeds $10,000 for capital purchases or $20,000
for infrastructure items, generally these are not
considered normal maintenance. When the cost is below
$10,000, the costs are financed annually as operational
maintenance. As charges are incurred on replacement
projects the reserves are deducted from the respective
Replacement Funds monthly.
b. Sources
The various funds in this category are financed by debt
proceeds, the “buy-in” portion of the capacity fee, and
general fund designations.
c. Funding Levels
I. Minimum Level – The minimum reserve level of this
category of funds is 3% of the historical value of
existing assets as identified in the District’s
current financial statements. Potable, recycled,
and sewer replacement are evaluated separately.
II. Maximum Level – The maximum reserve level of this
category of funds is 6% of existing assets. If the
Page 26 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
combined replacement reserves exceed target levels,
the District should consider transferring the “buy-
in” portion of the capacity fee to meet other
purposes. Another consideration would be to shift
the timing of replacement projects.
III. Target Level – The target reserve level of this
category of funds is 4% of existing assets. In the
event that the reserves fall below the recommended
target level, the District should consider
transferring the “buy-in” portion of the capacity
fee. The District should also consider shifting
the timing of replacement projects or issuing debt
to support the planned level of facility
replacement. The District will act based on the
annual six-year rate model to ensure that at the
end of that planning horizon the reserves exceed
the minimum level and are approaching the target
level.
Page 27 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.3: Replacement Fund Category
(1) For Water Capacity Fees 68.8% goes into the Capital Improvement Fund.
For Sewer Capacity Fees 100% goes into the Capital Improvement Fund.
3.4 Betterment Fund Category
a. Purpose
The Betterment Fund category is to finance the
betterment portion of capital projects with a portion
going to maintenance of the potable, recycled, and sewer
systems. The District maintains separate Betterment
Fund categories, one for each improvement district. An
improvement district is a legally defined geographic
area usually established for the purpose of bond
financing of facilities. The betterment reserves within
Unrestricted and
Undesignated Funding
Sources
Designated
Replacement
Fund
Designated Funds
Replacement
Capital
Improvement
Fund
Restricted Funds
Replacement
Debt Fund Restricted Funds
Restricted Funds
Replacement
Fund
Category
Debt
Proceeds
Capacity
Fees (1) Funding Source
General Fund – Rates and Charges
Debt Fund Capital
Improvement Fund
Page 28 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
these funds are restricted by law for use within the
improvement district in which the fees were collected
(Water Code 71631.6). However, the legal restriction of
this reserve depends upon the particular revenue source.
(See Section 2.2 b. for a review of the availability
fees).
When considering the reserve levels of the betterment
category of funds, the following funds work in concert
and must be considered jointly: Betterment Fund, Debt
Fund, Capital Improvement Fund, and Designated
Betterment Fund.
b. Sources
The Betterment Fund category receives restricted
revenues through improvement districts from the
availability fees (the first $10 is unrestricted,
while amounts over $10 are restricted) collected
through the county tax roll. Betterment may also be
financed by debt proceeds, the “buy-in” portion of the
capacity fee, as well as the general fund through a
designation of reserves.
c. Funding Levels
I. Minimum Level – As the District matures, the CIP
will move to purely replacement projects. As the
District moves through this lifecycle the need for
betterment reserves will decrease and may be
reduced to zero.
II. Maximum Level – The maximum reserve level for the
betterment category of funds is limited to five
years of unfinanced betterment facilities as
described in the District’s CIP Budget. To
determine the unfinanced amount, the total
financing need must be reduced by the projected
betterment revenues, bond financing, and general
fund designations. If this maximum is exceeded,
then the District should evaluate reductions in the
special water rates and availability fees,
transferring designated reserves to meet other
purposes, or shifting the timing of betterment
projects.
Page 29 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
III. Target Level – The target is six months of
betterment expenditures. It is important that the
betterment reserves remain at a minimum of six
months of betterment expenditures. This reserve
level allows the District the time necessary to
issue additional debt without depleting betterment
reserves. If the combined betterment reserves drop
below six months of expenditures this would trigger
a transfer of general use reserves, a bond sale, or
an adjustment to the timing of betterment projects.
Bond proceeds would be placed in the Betterment
Bond Fund while transfers would be placed in the
Designated Betterment Fund.
Page 30 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Betterment
Fund
Diagram 3.4: Betterment Fund Category
(1) The portion of charges over $10 per parcel is restricted.
(2) For Water Capacity Fees 68.8% goes into the Capital Improvement Fund. For Sewer
Capacity Fees 100% goes into the Capital Improvement Fund.
Betterment
Capital
Improvement
Fund
Availability
Charges(1)
Capacity
Fees(2)
Debt
Proceeds
Betterment
Fund
Category
Betterment
Debt Fund
Designated
Betterment
Fund
General Fund - Rates and Charges
Betterment
Fund
Capital
Improvement
Fund
Bond/Debt
Fund
Funding Source
Restricted Funds
Restricted Funds
Restricted Funds
Unrestricted and
Undesignated Funding
Sources
Restricted Funds
Designated Funds
Page 31 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Diagram 3.5: Fund Targets
Fund or Fund
Category
Actions to Consider if
below Target Target Maximum
New Supply Fund
Category
Bond financing, or
transfer to designated
or CIF
Total of all funds in fund
category = six months
of new supply capital
expenditures
Nexus of cost to fee
Expansion Fund
Category
Capacity fee increase,
bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of expansion capital
expenditures
Five years unfunded
needs
Replacement Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = 4% of
infrastructure
6% of infrastructure
Betterment Fund
Category
Bond financing, or
transfer to designated
or CIFs
Total of all funds in fund
category = six months
of betterment capital
expenditures
Five years unfunded
needs
Rate Stabilization Fund Fund transfers from
legally available funds
The financial impact of
two consecutive years of
low winter water usage
The financial impact of
three consecutive years
of low winter water
usage
General Fund
Rate increase or fund
transfers
Three months of
operating budget
expenses
Nine months of
operating budget
expenses
Additional Restricted Funds
4.0 Capital Improvement Fund
a. Purpose
The Capital Improvement Fund’s (CIF) sole purpose is to
track the “buy-in” portion of the capacity fee and to ensure
these fees are expended solely for the purpose for which they
Page 32 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
were collected. In this case it is to pay for facilities
that were in existence at the time this fee was established.
These fees may be used for expansion, replacement, or
betterment projects or any debt related to these categories.
The water capacity fees may also be used for either the
potable or the recycled systems. As capacity fees are
collected, the “buy-in” portion of the fee is allocated as
needed to one of three CIFs, one in each of the Expansion,
Replacement, and Betterment Fund categories. These reserves
are used to pay debt or offset any negative balance within
these three categories of funds. For sewer, these fees fund
the Expansion, Replacement, or Betterment Fund categories.
These fees may not be used to finance the New Water Supply
category, as there were no new water supply facilities in
existence at the time the new methodology for capacity fees
was established.
b. Sources
The “buy-in” portion of the capacity fee collected after
June 30, 2010 for water or after September 30, 2014 for
sewer.
c. Funding Levels
There are no minimums, maximums, or target levels for these
reserves on an individual basis. The allocation of this
fee to the various CIFs is dependent on the overall reserve
levels within each fund category.
4.1 Debt Reserve Fund
a. Purpose
The Debt Reserve Fund is established to hold the proceeds
from the various debt issuances. There are two types of
debt, General Obligation bonds and Revenue bonds. The
proceeds are transferred to the New Water Supply, Expansion,
Replacement, or Betterment Debt Funds as they are expended
for various facilities within those fund categories. As
repayment of the debt occurs, the balances within these
individual funds are reduced so that the financial impact of
issuing debt is tracked within the category for which the
debt was issued.
b. Sources
Debt proceeds.
Page 33 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
c. Uses
There are no minimums, maximums, or target levels for this
fund on an individual basis. This fund is available on an as
needed basis to fund CIP projects for new water supply,
expansion, replacement, betterment, or maintain levels
defined within the District’s debt agreements. From a
funding level perspective, these reserves are evaluated in
the context of all the various funds within each fund
category.
4.2 Rate Stabilization Fund
a. Purpose
The Rate Stabilization Fund is established for the purpose of
minimizing rate increases in response to one-time events and
therefore stabilizing the rates and charges imposed by the
District to meet covenanted debt service coverage levels.
The Rate Stabilization Fund is not intended to be used to
offset regular rate increases needed to meet inflationary
cost increases in operations.
b. Sources
The District may budget for Rate Stabilization Fund deposits
from the Sewer Fund, amounts in excess of the annual debt
service coming due and payable in the fiscal year, after
payment of operating expenses. The allowable amount that may
be deposited shall not be transferred prior to payment of the
annual debt service obligation.
c. Uses
There is no minimum level for this fund. The maximum level
shall be equal to the financial impact of three (3)
consecutive years of low winter water usage. The target
level for this fund shall be equal to two (2) consecutive
years of low winter water usage. For the purposes of
calculating debt service, amounts transferred from the Rate
Stabilization Fund to the Sewer Fund will constitute Gross
Revenue in the fiscal year the transfer occurs. All interest
Or other earnings on deposits in the Rate Stabilization Fund
will be withdrawn at least annually and will be accounted for
as operating revenue in the Sewer Fund.
Page 34 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Fund Transfers
5.0 Funding Levels
As described in the preceding sections, the District maintains
reserves for its operating and capital activities. These reserves
can be of three types: 1) undesignated or general use reserves, 2)
designated, and 3) restricted for a specific purpose. The
restricted reserves can be restricted geographically and/or by
purpose. The District maintains various funds to track the
various designations and restrictions. The source of the money
for each fund was discussed along with the purpose, source of
funds, and levels. Key characteristics of these funds are the
target levels, minimums, and maximums. The funding levels must
be viewed in the context of the economic environment, political
environment, and in light of the District’s rate model. The
District’s six-year rate model not only shows the current balance
but also shows the trend of the fund balances. Often the trend
of the fund is a greater indicator of financial stability than is
the current balance.
The rate model is updated each year with the budget process and
evaluates each fund over the next six years. The rate model will
take into account the general economic environment, looking at
the development rate, supply rate increases, the possibility of
raising rates, capital infrastructure spending, and strategic
plan initiatives. The fund balances may at times be over or
under the target amount. This is not only acceptable but
expected. The rate model provides an empirical estimate of the
conformance between the projected District’s financial activities
and the guidelines of this policy.
5.1 Fund Transfers
Reserves within the District’s various designated funds come from
interfund transfers of unrestricted general use reserves. It is
important to note that the District has the ability to use
general use reserves for any business purpose. General use
reserves may be transferred to and from any unrestricted fund for
any business need. Designated reserves are general use reserves
which have been set aside for a specific purpose by Board action.
These reserves can only be used for the purpose they were
designated, or with Board action they may be used for any other
business purpose. While general use reserves may be used for any
restricted purpose, they may not be transferred to Restricted
Page 35 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Funds due to the sensitivity of the tracking of restricted
reserves. If reserves are needed for a restricted purpose, they
are transferred to a Designated Fund within the fund category
with that particular purpose. Reserves restricted to a fund
category may only be used within that category and may not be
transferred to another category. For example, the “incremental”
portion of the capacity fee are restricted reserves for a
specific purpose and may not be transferred to another category
as no other category has the same purpose. However, the “buy-in”
portion of the capacity fees are restricted for purposes that are
shared by more than one category of funds and may therefore be
transferred to a restricted fund within another fund category as
long as it shares the same purpose.
In many situations reserve transfers are expected as some fund
categories will exceed their maximums or drop below their
minimums. Only fund categories that are below the stated target
are eligible to receive transferred reserves. Fund categories
that exceed their maximums are first to be considered for
transfers out, followed by funds that exceed their targets. Funds
that exceed their minimums are also available for reserve
transfers out, but only when other options are not available.
The rationale for prioritizing reserve transfers is based on the
immediacy of the need and the availability of reserves from other
funding sources. For example, the General Fund is first to
receive reserves when it drops below its target or minimum levels.
This is because of the immediate and ongoing nature of the
expenditures that are served by this fund. The operation of the
District is the first and foremost objective of the District. On
the other end of the spectrum, the Replacement Fund has a long-
term perspective and will be used to partially finance replacement
assets for many years to come. Debt financing is available to
respond to this long-term, foreseeable, and planned cash flow.
This fund is less likely to have immediate needs and has other
financing options.
When making the determination of when transfers are necessary, all
funds within a fund category work as a group. The combined
balance of the restricted and designated funds are looked at when
determining whether the fund category requires additional funding
from the Restricted Capital Improvement Fund, Restricted Debt
Fund, or the General Fund. Because the Capital Improvement Fund
may finance expansion, replacement, or betterment, reserves may
be transferred between these fund categories, but only back and
forth within its own type of restricted fund.
Page 36 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
As an example, if during the rate model update process it was
determined that the Expansion Funds (designated and restricted)
would drop and stay below the minimum during the six-year
planning horizon, this would trigger a bond issuance, a transfer
of general use reserves, and/or a transfer of restricted reserves.
If in the cash planning process, it was anticipated that the
General Fund would remain above target during the planning
horizon and that the trend did not present a problematic
underfunded status, then General Fund reserves would be
considered available for transfer prior to issuing debt. Also,
if during this period the Betterment Fund category was
anticipated to exceed its maximum, then reserves from either the
Designated Betterment Fund, or the Capital Improvement Fund would
be transferred to the corresponding Expansion Fund prior to a
bond issuance. All funds are evaluated to determine which has
the greatest need or availability of reserves before any reserve
transfer recommendation is presented to the Board.
Page 37 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
GLOSSARY
The Reserve Policy contains terminology that is unique to public
finance and budgeting. The following glossary provides assistance
in understanding these terms.
Annexation Fees: When water service is requested for land outside
the boundaries of the District, the land to be serviced must first
be annexed. For sewer service the land must be annexed into an
improvement district within the District.
Assets: Resources owned or held by Otay Water District that
have monetary value.
Availability Fees: The District levies charges each year in
developed areas to be used for upgrades, betterment, or
replacement and in undeveloped areas to provide a source of
funding for planning, mapping, and preliminary design of
facilities to meet future development. Current legislation
provides that any availability charge in excess of $10.00 per acre
shall be used only for the purpose of the improvement district for
which it was assessed.
Bond: A written promise to pay a sum of money on a specific date
at a specified interest rate. The interest payments and the
repayment of the principal are authorized in a District bond
resolution. The most common types of bonds are General Obligation
(GO) bonds and Certificates of Participation (COPs). These are
frequently used for construction of large capital projects such as
buildings, reservoirs, pipelines and pump stations.
Capital Equipment: Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments, etc. which
have a life expectancy of more than two years and a value over
$10,000.
Capital Improvement Program (CIP): A long-range plan of the
District for the construction, rehabilitation and
modernization of the District-owned and operated
infrastructure.
Page 38 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
CWA: The County Water Authority was organized in 1944 under the
State County Water Authority Act for the primary purpose of
importing Colorado River water to augment the local water supplies
of the Authority's member agencies. The Authority purchases
water from the Metropolitan Water District of Southern California
(MWD) which imports water from the Colorado River and the State
Water Project.
Debt Service: The District's obligation to pay the principal and
interest of bonds and other debt instruments according to a
predetermined payment schedule.
Expenditures/Expenses: These terms refer to the outflow of funds
paid or to be paid for an asset, goods, or services obtained
regardless of when actually paid for. (Note: An encumbrance is
not an expenditure). An encumbrance reserves funds to be expended
in a future period.
Fund: An account used to track the collection and use of monies
for a specifically defined purpose.
Fund Balance: The current funds on hand resulting from the
historical collection and use of monies. The difference between
assets and liabilities reported in the District’s Operating Fund
plus residual equities or balances and changes therein, from the
results of operations.
Interest Income: Earnings from the investment portfolio. Per
District Policy Number 25, interest income will be allocated to
the various funds each month based upon each fund’s prior month-
ending balance.
Late Charges/Penalties: Charges and penalties are imposed on
customer accounts for late payments, returned payments, and other
infringements of the District’s Code of Ordinances.
1% Property Tax: In 1978, Proposition 13 limited general levy
property tax rates for all taxing authorities to a total rate of
1% of full cash value. Subsequent legislation, AB 8, established
that the receipts from the 1% levy were to be distributed to
taxing agencies according to approximately the same proportions
received prior to Proposition 13.
Page 39 of 39
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject
RESERVE POLICY
Policy
Number
25
Date
Adopted
2/10/93
Date
Revised
5/3/23
Operating Budget: The portion of the budget that pertains to
daily operations that provide basic governmental services. The
operating budget contains appropriations for such expenditures as
personnel, supplies, utilities, materials, travel and fuel, and
does not include purchases of major capital plant or equipment
which is budgeted for separately in the Capital Budget. The
Operating Budget also identifies planned non-operating revenues
and expenses.
Revenue: Monies that the District receives as income. It
includes such items as water sales and sewer fees. Estimated
revenues are those expected to be collected during the fiscal
year.
Russell Square: A sewer lift station constructed in 1983 that
serves four properties in the Russell Square Development.
System Fees: Each water service customer pays a monthly system
charge for water system replacement, maintenance, and operation
expenses. The charge is based on the size of the meter and class
of service.
Tax Collection for Bond Debt: California Water Code Section 72091
authorizes the District, as a municipal water district, to levy ad
valorem property taxes which are equal to the amount required to
make annual payments for principal and interest on General
Obligation bonds approved by the voters prior to July 1, 1978.
Unit: A Unit of water is 100 cubic feet or 748 gallons of water.
Water Rates: Rates vary among classes of service and are measured
in Units. The water rates for residential customers are based on
an accelerated block structure. As more Units are consumed, a
higher Unit rate is charged. Effective in 2009, all non-
residential customers are charged for water based on a tiered rate
structure in which water rates are based on meter size and amount
of Units consumed.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: May 3, 2023
SUBMITTED BY: Eid Fakhouri,
Finance Manager
PROJECT: DIV. NO. All
APPROVED BY: Kevin Koeppen, Assistant Chief of Finance
Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT:
Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief
Financial Officer
GENERAL MANAGER’S RECOMMENDATION:
That the Board receives the District’s Investment Policy (Policy No.
27) of the District’s Code of Ordinances for review and re-delegateauthority for all investment related activities to the Chief
Financial Officer, in accordance with Government Code Section 53607.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
Government Code Section 53646 recommends that the District’s Investment Policy be tendered to the Board on an annual basis for review. In addition, Government Code Section 53607 requires that for the Board’s delegation of investment responsibilities to the Chief
Financial Officer to remain effective, the governing board must re-delegate authority over investment activities on an annual basis.
ANALYSIS:
The primary goals of the Investment Policy are to assure compliance with the California Government Code, Sections 53600 et seq. The
primary objectives, in priority order, of investment activities are:
AGENDA ITEM 6d
1. Protect the principal of the funds.
2. Remain sufficiently liquid to enable the District to meet all operating requirements which might be reasonably anticipated.
3. The District’s return is a market rate of return that is
commensurate with the conservative investments approach to meet the first two objectives of safety and liquidity.
The government code restricts local agency investment options to a conservative list of investments, including: Federal Treasuries,
Federal Agencies, Callable Federal Agencies, the State Pool, the County Pool, and high-grade corporate debt. Each year, staff reviews legislative updates to ensure our Investment Policy reflects the most recent and relevant updates approved by the
California State Legislature. During this year’s policy review, there were no relevant legislative changes that affect our Investment Policy.
On an annual basis, staff submits the Investment Policy to our list
of Broker/Dealers for their professional review and to ensure they acknowledge and understand the District’s Investment Policy. This
year, District Brokers/Dealers did not recommend any changes be made to our Investment Policy.
Because of the District’s adherence to a conservative range of authorized investments, we have been able to maintain a healthy and
diversified portfolio that meets our overall investment objectives and supports our long-term financial plans. The current policy is consistent with the current law and the overall objectives of the
policy are being met; therefore, there are no recommended changes to the District’s Investment Policy at this time.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None. STRATEGIC GOAL: Demonstrate financial health through formalized policies, prudent
investing, and efficient operations. LEGAL IMPACT: None.
Attachments:
A) Committee Action B) Policy No. 27
C) Presentation Slides
ATTACHMENT A
SUBJECT/PROJECT:
Annual Review of the Investment Policy (Policy No. 27) of the District’s Code of Ordinances and the Re-delegation of Authority for All Investment Related Activities to the Chief Financial Officer
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this item at a meeting held on April 19, 2023, and the following
comments were made:
• Staff provided the staff report to the Committee and noted
that during this year’s policy review, there were no relevant legislative changes that affect the District’s
Investment Policy.
• In response to a question from the Committee, staff stated
that the District receives financial investment advice from brokers and determines how to proceed with the advice that
is provided.
• Staff noted that the District’s investment report is
available for review in the monthly General Manager’s Report.
Upon completion of the discussion, the Committee supported presentation to the full board as a Consent Item.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
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1.0 POLICY
It is the policy of the Otay Water District to invest public funds in
a manner which will provide maximum security with the best interest
return, while meeting the daily cash flow demands of the entity and
conforming to all state statues governing the investment of public
funds.
2.0 SCOPE
This investment policy applies to all financial assets of the Otay
Water District. The District pools all cash for investment purposes.
These funds are accounted for in the District’s audited Comprehensive
Annual Financial Report (CAFR) and include:
2.1) General Fund
2.2) Capital Project Funds
2.2.1) Designated Expansion Fund
2.2.2) Restricted Expansion Fund
2.2.3) Designated Betterment Fund
2.2.4) Restricted Betterment Fund
2.2.5) Designated Replacement Fund
2.2.6) Restricted New Water Supply Fund
2.3) Other Post Employment Fund (OPEB)
2.4) Debt Reserve Fund
Exceptions to the pooling of funds do exist for tax-exempt debt
proceeds, debt reserves and deferred compensation funds. Funds
received from the sale of general obligation bonds, certificates of
participation or other tax-exempt financing vehicles are segregated
from pooled investments and the investment of such funds are guided by
the legal documents that govern the terms of such debt issuances.
3.0 PRUDENCE
Investments should be made with judgment and care, under current
prevailing circumstances, which persons of prudence, discretion and
intelligence, exercise in the management of their own affairs, not for
speculation, but for investment, considering the probable safety of
their capital as well as the probable income to be derived.
Attachment B
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Subject Policy
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The standard of prudence to be used by investment officials shall be
the “Prudent Person” and/or "Prudent Investor" standard (California
Government Code 53600.3) and shall be applied in the context of
managing an overall portfolio. Investment officers acting in
accordance with written procedures and the investment policy and
exercising due diligence shall be relieved of personal responsibility
for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion
and appropriate action is taken to control adverse developments.
4.0 OBJECTIVE
As specified in the California Government Code 53600.5, when
investing, reinvesting, purchasing, acquiring, exchanging, selling and
managing public funds, the primary objectives, in priority order, of
the investment activities shall be:
4.1)Safety: Safety of principal is the foremost objective of
the investment program. Investments of the Otay Water
District shall be undertaken in a manner that seeks to
ensure the preservation of capital in the overall portfolio.
To attain this objective, the District will diversify its
investments by investing funds among a variety of securities
offering independent returns and financial institutions.
4.2)Liquidity: The Otay Water District’s investment portfolio
will remain sufficiently liquid to enable the District to
meet all operating requirements which might be reasonably
anticipated.
4.3)Return on Investment: The Otay Water District’s investment
portfolio shall be designed with the objective of attaining
a benchmark rate of return throughout budgetary and economic
cycles, commensurate with the District’s investment risk
constraints and the cash flow characteristics of the
portfolio.
5.0 DELEGATION OF AUTHORITY
Authority to manage the Otay Water District’s investment program is
derived from the California Government Code, Sections 53600 through
53692. Management responsibility for the investment program is hereby
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delegated to the Chief Financial Officer (CFO), who shall be
responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of subordinate officials
and their procedures in the absence of the CFO.
The CFO shall establish written investment policy procedures for the
operation of the investment program consistent with this policy. Such
procedures shall include explicit delegation of authority to persons
responsible for investment transactions. No person may engage in an
investment transaction except as provided under the terms of this
policy and the procedures established by the CFO.
6.0 ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall
refrain from personal business activity that could conflict with the
proper execution and management of the investment program, or that
could impair their ability to make impartial investment decisions.
Employees and investment officials shall disclose to the General
Manager any material financial interests in financial institutions
with which they conduct business. They shall further disclose any
personal financial/investment positions that could be related to the
performance of the investment portfolio. Employees and officers shall
refrain from undertaking personal investment transactions with the
same individual with whom business is conducted on behalf of the
District.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Chief Financial Officer shall maintain a list of District selected
financial institutions and security broker/dealers authorized and
approved to provide investment services in the State of California.
Investment services include the buying or selling of permissible
investments such as treasuries, government agencies, etc. for delivery
to the custodian bank. These may include “primary” dealers or regional
dealers that qualify under Securities & Exchange Commission Rule 15C3-
1 (Uniform Net Capital Rule). No public deposit shall be made except
in a qualified public depository as established by state laws. All
financial institutions and broker/dealers who desire to become
qualified bidders for investment transactions must supply the District
with the following, as appropriate:
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Audited Financial Statements.
Proof of Financial Industry Regulatory Authority (FINRA)
certification.
Proof of state registration.
Completed broker/dealer questionnaire.
Certification of having read the District’s Investment
Policy.
Evidence of adequate insurance coverage.
An annual review of the financial condition and registrations of
qualified bidders will be conducted by the CFO. A current audited
financial statement is required to be on file for each financial
institution and broker/dealer through which the District invests.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS
From the governing body perspective, special care must be taken to
ensure that the list of instruments includes only those allowed by law
and those that local investment managers are trained and competent to
handle. The District is governed by the California Government Code,
Sections 53600 through 53692, to invest in the following types of
securities, as further limited herein:
8.01)United States Treasury Bills, Bonds, Notes or those
instruments for which the full faith and credit of the United
States are pledged for payment of principal and interest. There
is no percentage limitation of the portfolio which can be
invested in this category, although a five-year maturity
limitation is applicable.
8.02)Local Agency Investment Fund (LAIF), which is a State
of California managed investment pool, may be used up to the
maximum permitted by State Law (currently $75 million). The
District may also invest bond proceeds in LAIF with the same but
independent maximum limitation.
8.03)Bonds, debentures, notes and other evidence of
indebtedness issued by any of the following government agency
issuers:
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Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC or "Freddie
Mac")
Federal National Mortgage Association (FNMA or "Fannie Mae")
Government National Mortgage Association (GNMA or “Ginnie
Mae”)
Federal Farm Credit Bank (FFCB)
Federal Agricultural Mortgage Corporation (FAMCA or “Farmer
Mac”)
There is no percentage limitation of the portfolio which can be
invested in this category, although a five-year maturity from the
settlement date limitation is applicable. Government agencies
whose implied guarantee has been reduced or eliminated shall
require an “A” rating or higher by a nationally recognized
statistical rating organization.
8.04)Interest-bearing demand deposit accounts must be made
only in Federal Deposit Insurance Corporation (FDIC) insured
accounts. For deposits in excess of the insured maximum of
$250,000, approved collateral shall be required in accordance
with California Government Code, Section 53652. Certificates of
Deposit (CD) will be made only to the FDIC-insured limit of
$250,000. Investments in CD’s are limited to 15 percent of the
District’s portfolio.
8.05) Commercial paper, which is short-term, unsecured
promissory notes of corporate and public entities. Purchases of
eligible commercial paper may not exceed 2 percent of the
outstanding paper of an issuing corporation, and maximum
investment maturity will be restricted to 270 days. Investment is
further limited as described in California Government Code,
Section 53601(h). Purchases of commercial paper may not exceed 10
percent of the District’s portfolio.
8.06)Medium-term notes defined as all corporate debt
securities with a maximum remaining maturity of five years from
the settlement date or less, and that meet the further
requirements of California Government Code, Section 53601(k).
Investments in medium-term notes are limited to 10 percent of the
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District’s portfolio and no more than 2 percent of the
outstanding medium-term notes of any single issuer.
8.07)Money market mutual funds that invest only in Treasury
securities and repurchase agreements collateralized with Treasury
securities, and that meet the further requirements of California
Government Code, Section 53601(l). Investments in money market
mutual funds are limited to 10 percent of the District's
portfolio.
8.08)The San Diego County Treasurer’s Pooled Money Fund,
which is a County managed investment pool, may be used by the
Otay Water District to invest excess funds. There is no
percentage limitation of the portfolio which can be invested in
this category.
8.09)Under the provisions of California Government Code
53601.6, the Otay Water District shall not invest any funds
covered by this Investment Policy in inverse floaters, range
notes, interest-only strips derived from mortgage pools, or any
investment that may result in a zero-interest accrual if held to
maturity. Also, the borrowing of funds for investment purposes,
known as leveraging, is prohibited.
9.0 INVESTMENT POOLS/MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to
investing, and on a continual basis. There shall be a questionnaire
developed which will answer the following general questions:
A description of eligible investment securities, and a
written statement of investment policy and objectives.
A description of interest calculations and how it is
distributed, and how gains and losses are treated.
A description of how the securities are safeguarded
(including the settlement processes), and how often the
securities are priced and the program audited.
A description of who may invest in the program, how often,
and what size deposits and withdrawals are allowed.
A schedule for receiving statements and portfolio listings.
Are reserves, retained earnings, etc., utilized by the
pool/fund?
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A fee schedule, and when and how is it assessed.
Is the pool/fund eligible for bond proceeds and/or will it
accept such proceeds?
10.0 COLLATERALIZATION
Collateralization will be required on certificates of deposit
exceeding the $250,000 FDIC insured maximum. In order to anticipate
market changes and provide a level of security for all funds, the
collateralization level will be 102% of market value of principal and
accrued interest. Collateral will always be held by an independent
third party with whom the entity has a current custodial agreement. A
clearly marked evidence of ownership (safekeeping receipt) must be
supplied to the entity and retained. The right of collateral
substitution is granted.
11.0 SAFEKEEPING AND CUSTODY
All security transactions entered into by the Otay Water District
shall be conducted on a delivery-versus-payment (DVP) basis.
Securities will be held by a third-party custodian designated by the
District and evidenced by safekeeping receipts.
12.0 DIVERSIFICATION
The Otay Water District will diversify its investments by security
type and institution, with limitations on the total amounts invested
in each security type as detailed in Paragraph 8.0, above, so as to
reduce overall portfolio risks while attaining benchmark average rate
of return. With the exception of U.S. Treasury securities, government
agencies, and authorized pools, no more than 50% of the District’s
total investment portfolio will be invested with a single financial
institution.
13.0 MAXIMUM MATURITIES
To the extent possible, the Otay Water District will attempt to match
its investments with anticipated cash flow requirements. Unless
matched to a specific cash flow, the District will not directly invest
in securities maturing more than five years from the settlement date
of the purchase. However, for time deposits with banks or savings and
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loan associations, investment maturities will not exceed two years.
Investments in commercial paper will be restricted to 270 days.
14.0 INTERNAL CONTROL
The Chief Financial Officer shall establish an annual process of
independent review by an external auditor. This review will provide
internal control by assuring compliance with policies and procedures.
15.0 PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of
obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow
needs.
The Otay Water District’s investment strategy is passive. Given this
strategy, the basis used by the CFO to determine whether market yields
are being achieved shall be the State of California Local Agency
Investment Fund (LAIF) as a comparable benchmark.
16.0 REPORTING
The Chief Financial Officer shall provide the Board of Directors
monthly investment reports which provide a clear picture of the status
of the current investment portfolio. The management report should
include comments on the fixed income markets and economic conditions,
discussions regarding restrictions on percentage of investment by
categories, possible changes in the portfolio structure going forward
and thoughts on investment strategies. Schedules in the quarterly
report should include the following:
A listing of individual securities held at the end of the
reporting period by authorized investment category.
Average life and final maturity of all investments listed.
Coupon, discount or earnings rate.
Par value, amortized book value, and market value.
Percentage of the portfolio represented by each investment
category.
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17.0 INVESTMENT POLICY ADOPTION
The Otay Water District’s investment policy shall be adopted by
resolution of the District’s Board of Directors. The policy shall be
reviewed annually by the Board and any modifications made thereto must
be approved by the Board.
18.0 GLOSSARY
See Appendix A.
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APPENDIX A: GLOSSARY
ACTIVE INVESTING: Active investors will purchase investments and
continuously monitor their activity, often looking at the price
movements of their stocks many times a day, in order to exploit
profitable conditions. Typically, active investors are seeking short
term profits.
AGENCIES: Federal agency securities and/or Government-sponsored
enterprises.
BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a
bank or trust company. The accepting institution guarantees payment
of the bill, as well as the issuer.
BENCHMARK: A comparative base for measuring the performance or risk
tolerance of the investment portfolio. A benchmark should represent a
close correlation to the level of risk and the average duration of the
portfolio’s investments.
BROKER/DEALER: Any individual or firm in the business of buying and
selling securities for itself and others. Broker/dealers must register
with the SEC. When acting as a broker, a broker/dealer executes
orders on behalf of his/her client. When acting as a dealer, a
broker/dealer executes trades for his/her firm's own account.
Securities bought for the firm's own account may be sold to clients or
other firms, or become a part of the firm's holdings.
CERTIFICATE OF DEPOSIT (CD): A short or medium term, interest bearing,
FDIC insured debt instrument offered by banks and savings and loans.
Money removed before maturity is subject to a penalty. CDs are a low
risk, low return investment, and are also known as “time deposits”,
because the account holder has agreed to keep the money in the account
for a specified amount of time, anywhere from a few months to several
years.
COLLATERAL: Securities, evidence of deposit or other property, which a
borrower pledges to secure repayment of a loan. Also refers to
securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER: An unsecured short-term promissory note, issued by
corporations, with maturities ranging from 2 to 270 days.
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COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual
report for the Otay Water District. It includes detailed financial
information prepared in conformity with generally accepted accounting
principles (GAAP). It also includes supporting schedules necessary to
demonstrate compliance with finance-related legal and contractual
provisions, extensive introductory material, and a detailed
statistical section.
COUPON: (a) The annual rate of interest that a bond’s issuer promises
to pay the bondholder on the bond’s face value. (b) A certificate
attached to a bond evidencing interest due on a set date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all
transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of
securities: delivery versus payment and delivery versus receipt.
Delivery versus payment is delivery of securities with an exchange of
money for the securities. Delivery versus receipt is delivery of
securities with an exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose return profile is linked
to, or derived from, the movement of one or more underlying index or
security, and may include a leveraging factor, or (2) financial
contracts based upon notional amounts whose value is derived from an
underlying index or security (interest rates, foreign exchange rates,
equities or commodities).
DISCOUNT: The difference between the cost price of a security and its
maturity when quoted at lower than face value. A security selling
below original offering price shortly after sale also is considered to
be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments
that are issued at a discount and redeemed at maturity for full face
value, e.g., U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds among a variety of
securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to
supply credit to various classes of institutions and individuals,
e.g., S&L’s, small business firms, students, farmers, farm
cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that
insures deposits in member banks and thrifts.
FEDERAL FARM CREDIT BANK (FFCB): The Federal Farm Credit Bank system
supports agricultural loans and issues securities and bonds in
financial markets backed by these loans. It has consolidated the
financing programs of several related farm credit agencies and
corporations.
FEDERAL FUNDS RATE: The rate of interest at which Fed funds are
traded. This rate is currently pegged by the Federal Reserve through
open-market operations.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (FAMC or Farmer Mac): A
stockholder owned, publicly-traded corporation that was established
under the Agricultural Credit Act of 1987, which added a new Title
VIII to the Farm Credit Act of 1971. Farmer Mac is a government
sponsored enterprise, whose mission is to provide a secondary market
for agricultural real estate mortgage loans, rural housing mortgage
loans, and rural utility cooperative loans. The corporation is
authorized to purchase and guarantee securities. Farmer Mac
guarantees that all security holders will receive timely payments of
principal and interest.
FEDERAL HOME LOAN BANK (FHLB): Government sponsored wholesale banks
(currently 12 regional banks), which lend funds and provide
correspondent banking services to member commercial banks, thrift
institutions, credit unions and insurance companies.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC or Freddie Mac): A
stockholder owned, publicly traded company chartered by the United
States federal government in 1970 to purchase mortgages and related
securities, and then issue securities and bonds in financial markets
backed by those mortgages in secondary markets. Freddie Mac, like its
competitor Fannie Mae, is regulated by the United States Department of
Housing and Urban Development (HUD).
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FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): FNMA, like
GNMA was chartered under the Federal National Mortgage Association Act
in 1938. FNMA is a federal corporation working under the auspices of
the Department of Housing and Urban Development (HUD). It is the
largest single provider of residential mortgage funds in the United
States. Fannie Mae is a private stockholder-owned corporation. The
corporation’s purchases include a variety of adjustable mortgages and
second loans, in addition to fixed-rate mortgages. FNMA’s securities
are also highly liquid and are widely accepted. FNMA assumes and
guarantees that all security holders will receive timely payment of
principal and interest.
FEDERAL RESERVE SYSTEM: The central bank of the United States created
by Congress and consisting of a seven-member Board of Governors in
Washington, D.C., 12 regional banks and about 5,700 commercial banks
that are members of the system.
FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. (FINRA): An independent,
not-for-profit organization authorized by Congress to protect
America’s investors by making sure the securities industry operates
fairly and honestly. It is dedicated to investor protection and
market integrity through effective and efficient regulation of the
securities industry. FINRA is the successor to the National
Association of Securities Dealers, Inc. (NASD).
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): A
government owned agency which buys mortgages from lending
institutions, securitizes them, and then sells them to investors.
Because the payments to investors are guaranteed by the full faith and
credit of the U.S. Government, they return slightly less interest than
other mortgage-backed securities.
INTEREST-ONLY STRIPS: A mortgage-backed instrument where the investor
receives only the interest, no principal, from a pool of mortgages.
Issues are highly interest rate sensitive, and cash flows vary between
interest periods. Also, the maturity date may occur earlier than that
stated if all loans within the pool are pre-paid. High prepayments on
underlying mortgages can return less to the holder than the dollar
amount invested.
INVERSE FLOATER: A bond or note that does not earn a fixed rate of
interest. Rather, the interest rate is tied to a specific interest
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rate index identified in the bond/note structure. The interest rate
earned by the bond/note will move in the opposite direction of the
index. An inverse floater increases the market rate risk and modified
duration of the investment.
LEVERAGE: Investing with borrowed money with the expectation that the
interest earned on the investment will exceed the interest paid on the
borrowed money.
LIQUIDITY: A liquid asset is one that can be converted easily and
rapidly into cash without a substantial loss of value. In the money
market, a security is said to be liquid if the spread between bid and
asked prices is narrow and reasonable size can be done at those
quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from
political subdivisions that are placed in the custody of the State
Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could
presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future
transactions between the parties to repurchase/reverse repurchase
agreements that establish each party’s rights in the transactions. A
master agreement will often specify, among other things, the right of
the buyer-lender to liquidate the underlying securities in the event
of default by the seller borrower.
MATURITY: The date upon which the principal or stated value of an
investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills,
commercial paper, bankers’ acceptances, etc.) are issued and traded.
MUTUAL FUNDS: An open-ended fund operated by an investment company
which raises money from shareholders and invests in a group of assets,
in accordance with a stated set of objectives. Mutual funds raise
money by selling shares of the fund to the public. Mutual funds then
take the money they receive from the sale of their shares (along with
any money made from previous investments) and use it to purchase
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 15 of 17
various investment vehicles, such as stocks, bonds, and money market
instruments.
MONEY MARKET MUTUAL FUNDS: An open-end mutual fund which invests only
in money markets. These funds invest in short term (one day to one
year) debt obligations such as Treasury bills, certificates of
deposit, and commercial paper.
PASSIVE INVESTING: An investment strategy involving limited ongoing
buying and selling actions. Passive investors will purchase
investments with the intention of long-term appreciation and limited
maintenance, and typically don’t actively attempt to profit from short
term price fluctuations. Also known as a buy-and-hold strategy.
PRIMARY DEALER: A designation given by the Federal Reserve System to
commercial banks or broker/dealers who meet specific criteria,
including capital requirements and participation in Treasury auctions.
These dealers submit daily reports of market activity and positions
and monthly financial statements to the Federal Reserve Bank of New
York and are subject to its informal oversight. Primary dealers
include Securities and Exchange Commission registered securities
broker/dealers, banks, and a few unregulated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law
requires that a fiduciary, such as a trustee, may invest money only in
a list of securities selected by the custody state—the so-called legal
list. In other states the trustee may invest in a security if it is
one which would be bought by a prudent person of discretion and
intelligence who is seeking a reasonable income and preservation of
capital.
PUBLIC SECURITIES ASSOCIATION (PSA): A trade organization of dealers,
brokers, and bankers who underwrite and trade securities offerings.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not
claim exemption from the payment of any sales or compensating use or
ad valorem taxes under the laws of this state, which has segregated
for the benefit of the commission eligible collateral having a value
of not less than its maximum liability and which has been approved by
the Public Deposit Protection Commission to hold public deposits.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 16 of 17
RANGE NOTE: An investment whose coupon payment varies and is dependent
on whether the current benchmark falls within a pre-determined range.
RATE OF RETURN: The yield obtainable on a security based on its
purchase price or its current market price. This may be the amortized
yield to maturity on a bond the current income return.
REGIONAL DEALER: A securities broker/dealer, registered with the
Securities & Exchange Commission (SEC), who meets all of the licensing
requirements for buying and selling securities.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these
securities to an investor with an agreement to repurchase them at a
fixed price on a fixed date. The security “buyer” in effect lends the
“seller” money for the period of the agreement, and the terms of the
agreement are structured to compensate him for this. Dealers use RP
extensively to finance their positions. Exception: When the Fed is
said to be doing RP, it is lending money that is increasing bank
reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee
whereby securities and valuables of all types and descriptions are
held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of
outstanding securities issues following their initial distribution.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to
protect investors in securities transactions by administering
securities legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule.
STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises
(FHLB, FNMA, FAMCA, etc.), and Corporations, which have imbedded
options (e.g., call features, step-up coupons, floating rate coupons,
derivative-based returns) into their debt structure. Their market
performance is impacted by the fluctuation of interest rates, the
volatility of the imbedded options and shifts in the shape of the
yield curve.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
INVESTMENT POLICY 27 09/15/93 05/05/21
Page 17 of 17
TREASURY BILLS: A non-interest bearing discount security issued by the
U.S. Treasury to finance the national debt. Most bills are issued to
mature in three months, six months, or one year.
TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial
maturities of more than 10 years.
TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities
issued as direct obligations of the U.S. Government and having initial
maturities from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission
requirement that member firms as well as nonmember broker-dealers in
securities maintain a maximum ratio of indebtedness to liquid capital
of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans
and commitments to purchase securities, one reason new public issues
are spread among members of underwriting syndicates. Liquid capital
includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as
a percentage. (a) INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the security. (b) NET
YIELD or YIELD TO MATURITY is the current income yield minus any
premium above par or plus any discount from par in purchase price,
with the adjustment spread over the period from the date of purchase
to the date of maturity of the bond.
INVESTMENT POLICY No. 27
April 19, 2023
Attachment C
Eid Fakhouri, CPA Finance Manager
POLICY
REVIEW
Purpose:
Annual Investment Policy Review
California Government Code Section 53646
Delegation of InvestmentAuthority
Chief Financial Officer
California Government Code
Section 53607
INVESTMENT
OBJECTIVES
To safeguard principal, maintain liquidity, and to achieve a market investment return.
Fund Objectives (in order of priority)
Safety
Liquidity
Yield
POLICY
CHANGES
Annual Legislative Review
No Recommended Changes
California State Treasurer
No Changes in LAIF Limit,
currently set at $75M.
DELEGATION
OF
INVESTMENT
AUTHORITY
Re-delegate authority for all investment related activities to the Chief Financial Officer in accordance with Government Code Section 53607.
BOARD
ACTION
The action we are requesting today is to review and receive the 2023 Investment Policy No. 27 and to request the Re-delegation of authority for all investment activities to the District’s Chief Financial Officer.
Questions?
1
RESOLUTION NO. 4429
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT CONGRATULATING VISTA IRRIGATION DISTRICT ON ITS 100TH ANNIVERSARY
WHEREAS, on September 11, 2023, the Vista Irrigation District will celebrate 100 years of providing a reliable supply of high quality water that meets the needs of its customers in an economically and environmentally responsible manner; and
WHEREAS, an election was held on August 28, 1923, and 100% of the eligible
voters participated with the outcome of the election being 104 votes for 4 votes against the formation of Vista Irrigation District; and
WHEREAS, on September 11, 1923, Vista Irrigation District was created to provide
water to the farms and orchards of the growing community of Vista; and
WHEREAS, following the arrival of the first water from Lake Henshaw on February 27, 1926, crops of all kinds were planted, and the Vista area became known as the “Avocado Capital of the World”; and
WHEREAS, in June 1946, the Vista Irrigation District purchased San Diego Water Company, which included the 43,000-acre Warner Ranch, a former Spanish Land Grant, and encompassed Henshaw Dam and Lake Henshaw, securing a less expensive water supply for its customers; and
WHEREAS, in the midst of a drought, Vista Irrigation District sought to secure other sources of water and became a member of the San Diego County Water Authority in February 1954, providing access to water from Colorado River and northern California; and
WHEREAS, the Vista Irrigation District had the foresight to secure a local water supply and an imported water supply to draw upon during drought, ensuring that its water supply would never run dry; and
WHEREAS, the dedicated efforts of the Board of Directors of the Vista Irrigation
District and staff have played a major role in maintaining the quality of life and contributing to the economic growth in the communities it serves, including the City of Vista, portions of the cities of Escondido, Oceanside and San Marcos and unincorporated areas of the County of San Diego.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water District recognizes and congratulates the Vista Irrigation District on its 100 years of service and stewardship.
AGENDA ITEM 7a
2
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting, held this 3rd day of May, 2023.
Ayes: Noes: Abstain: Absent:
________________________________ Mark Robak, President Otay Water District
Attest:
_______________________ District Secretary
RESOLUTION NO. 4430
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE OTAY WATER DISTRICT
CONGRATULATING SANTA FE IRRIGATION DISTRICT ON ITS 100TH ANNIVERSARY
WHEREAS, on June 21, 2023, Santa Fe Irrigation District will celebrate 100 years of
meeting the water supply needs of all its customers, safely, sustainably, reliably, and cost-
effectively; and
WHEREAS, on February 26, 1923, the County of San Diego Board of Supervisors
certified that Santa Fe Irrigation District was duly organized and certified the election of five
Board of Directors; and
WHEREAS, Santa Fe Irrigation District was deemed responsible for the regulation of
water provided from Lake Hodges to the city of Solana Beach and areas of Rancho Santa Fe and
Fairbanks Ranch; and
WHEREAS, because of a reliable water supply after the creation of Santa Fe Irrigation
District, its service area was able to grow and thrive into a robust agriculture and urban area; and
WHEREAS, in 1948 Santa Fe Irrigation District joined the San Diego County Water
Authority to acquire the right to purchase and distribute imported water to its customers; and
WHEREAS, in 1967, Santa Fe Irrigation District and the San Dieguito Water District
entered a joint venture to build the R.E. Badger Filtration Plant to treat water from Lake Hodges
and imported water purchased from the San Diego County Water Authority; and
WHEREAS, in 1969, this joint venture purchased a conveyance flume, the San Dieguito
Reservoir and a 30-inch pipeline from the City of San Diego to move and store water for its
customers; and
WHEREAS, Santa Fe Irrigation District has continued to serve a safe and reliable water
supply to its customers to present day; and
WHEREAS, the dedicated efforts of the Board of Directors of Santa Fe Irrigation District
and staff have played a major role in maintaining the quality of life and contributing to the
economic growth of the communities it serves; and
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Otay Water
District recognizes and congratulates the Santa Fe Irrigation District on its 100 years of service.
AGENDA ITEM 7b
PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water
District at a regular meeting, held this 3rd day of May, 2023.
Ayes:
Noes:
Abstain:
Absent:
________________________________
Mark Robak, President
Otay Water District
Attest:
_______________________
District Secretary
RESOLUTION NO. 4428
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OTAY WATER DISTRICT
PLACING IN NOMINATION JOSE MARTINEZ
AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES
REGION 10 BOARD MEMBER
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE OTAY
WATER DISTRICT AS FOLLOWS:
A.Recitals
(i)The Board of Directors of the Otay Water District does encourage and
support the participation of its members in the affairs of the Association
of California Water Agencies (ACWA).
(ii)Jose Martinez has indicated a desire to serve as a board member of
ACWA Region 10.
B.Resolves
NOW THEREFORE, BE IT RESOLVED THAT THE BOARD OF
DIRECTORS OF THE OTAY WATER DISTRICT,
(i)Does place its full and unreserved support in the nomination of Jose
Martinez for the Board Member of ACWA Region 10.
(ii)Does hereby determine that the expenses attendant with the service of
Jose Martinez in ACWA Region 10 shall be borne by the Otay Water
District.
PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay
Water District at a regular meeting held this 3rd day of May, 2023.
Ayes:
Noes:
Abstain:
Absent:
__________________________________
President
ATTEST:
_____________________________
District Secretary
AGENDA ITEM 7c
I HEREBY CERTIFY that the foregoing Resolution No. 4428 was duly adopted by the
BOARD OF DIRECTORS of the OTAY WATER DISTRICT at a special meeting thereof
held on the 3rd day of May, 2023 by the following vote:
Ayes:
Noes:
Abstain:
Absent:
___________________________________
Tita Ramos-Krogman, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: May 3, 2023
SUBMITTED BY: Tita Ramos-Krogman,
District Secretary
W.O./G.F. NO: DIV. NO.
APPROVED BY: Tita Ramos-Krogman, District Secretary
Jose Martinez, General Manager
SUBJECT: Board of Directors 2023 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar 2023 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2023 Board of Director’s meeting calendar
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.
Attachment: Calendar of Meeting for 2023
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 05-03-23.doc
AGENDA ITEM 7d
Board of Directors, Workshops
and Committee Meetings
2023
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 4, 2023
February 1, 2023
March 1, 2023
April 5, 2023
May 3, 2023
June 7, 2023
July 5, 2023
August 2, 2023
September 6, 2023
October 4, 2023
November 1, 2023
December 6, 2023
January 18, 2023
February 15, 2023
March 15, 2023
April 19, 2023
May 17, 2023
June 21, 2023
July 19, 2023
August 16, 2023
September 20, 2023
October 18, 2023
November 15, 2023
December 20, 2023
STAFF REPORT
TYPE
MEETING: Regular Board
MEETING
DATE: May 3, 2023
SUBMITTED
BY:
Jose Martinez
0BGeneral Manager
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
APPROVED
BY:
Jose Martinez, General Manager
SUBJECT: 1BGeneral Manager’s Report
ADMINISTRATIVE SERVICESU:
GIS:
•Valve Criticality Report – Staff has produced a new report that
ranks valves based on their level of importance. This report was
created using the Valve Segmentation tool, which was jointly
developed with Operations and Engineering staff, and the GIS
vendor, Esri. The tool utilizes a calculation methodology to
determine the number of meters that will be impacted by each valve
once it becomes faulty or requires replacement. The new report
assigns a ranking to each valve based on the number of District
customer connections. This ranking system allows for a better
understanding of the impact that each valve has on the overall
system. By identifying the most critical valves, the District can
prioritize their replacement schedule, ensuring minimal service
disruption and appropriate resource allocation.
Human Resources:
•Request for Proposal - Proposals for benefits consulting services
were evaluated on April 11. Interviews with the two highest rated
firms were completed on April 17 and 18. Staff is currently
reaching out to these firms with a few follow-up questions
regarding fees and services. Staff anticipates final selection by
the end of April.
AGENDA ITEM 8
2
• New Hires/Recruitments - The District recently filled the following
positions:
o Electrician I/II
o Reclamation Plant Operator III
The District has completed interviews and is pursuing a candidate
for the following position:
o Environmental Compliance Specialist
The District is recruiting for the following positions:
o Senior Civil Engineer or Associate Civil Engineer
o Human Resources Assistant I or II
o Water Systems Operator I, II, or III
IT Operations:
• Tyler Eden Upgrade - Staff performed a minor update to the
District’s Financial and Budgeting System, Tyler Eden. The update
(5.28.1.2) provides minor enhancements and necessary patches
associated with various Eden financial modules, including updates
to updated IRS revisions, Accounts Payable (A/P) module, and
Utility Billing (UB) functionality.
Purchasing & Facilities:
• Docusign eSignature Update – In part due to the pandemic, but
mainly to introduce efficiencies into the routing for review and
signature of most of the District’s contracts, purchase order, and
other important documents, the District adopted DocuSign’s
eSignature platform in July of 2021. During the past six months,
the District has maintained an on-time completion rate of nearly
96% of e-routed documents, with little to no paper involvement for
transaction process.
A new feature with DocuSign is that of DocuSign Insight, which can
accelerate contract search and review, uncover agreement risks and
hidden opportunities, bring non-standard language back into
compliance all of which allows the District to evaluate
obligations, SLAs, renewals, rebates, incentives, and other key
procurement agreements effectively and efficiently.
3
Safety & Security:
• Training:
o Dog Bite Prevention – Field staff received occupational dog bite
prevention training due to the potential hazards while walking
or working on residential property. This was a joint training
class with Sweetwater Authority and an excellent opportunity to
discuss similar workplace interactions with aggressive dogs. The
training included canine statistics, self-defense methods,
learned the difference between defensive and predatory dogs, and
used live dogs to show the advantage the attacking dog has over
the employee. The training was well received by staff.
o Public Management Academy – Staff attended the sixth session of
the Certified Public Management Academy (PMA) program, which
runs from February – May 2023. The PMA is built on competencies
found to be critical for leaders to succeed in public
organizations. Some sessions focus on specific skill
development, but the emphasis is placed on developing a “big
picture” approach. The result is the creation of a cohort of
public leaders who look more deeply at their responsibilities
from an organization-wide perspective.
o Asbestos Cement Pipe Initial and Refresher Training – New and
existing employees received training and continue to understand
the hazards of asbestos and safety work (wet methods) practices.
o First Aid/CPR/AED – Staff attended bi-annual training to keep
their certification current.
• Meetings, Webinars, and Workshops:
o Cal Warn Region 6 Chair Meeting – The District is one of the co-
chairs for Region 6. The Region 6 Chairs met virtually to
discuss the Chair’s role and responsibilities and communicate
the membership benefits. U
4
UFINANCE:
• Property Insurance Coverage – ACWA-JPIA submitted the final
property schedule to the District. Staff reviewed the list and
confirmed it was now accurate and complete. Two of the reservoirs
required revaluations, and a few other minor changes were made to
the initial list ACWA-JPIA provided. The overall valuations are
increasing by an average of 15% due to ACWA-JPIA’s estimates of
replacement costs for all District covered assets. This increase
has an estimated impact of $50,000 on our property program premiums
and is reflected in the FY24 Budget proposal, although the actual
premiums will not be known until June.
• US Bank Transition – The US Bank web portal used for all
transactions will officially go-live on May 30, 2023. Staff is
testing the new AP and Payroll checks, ACH payroll deposit files,
and the AP Positive Payee files with US Bank. Finance and IT are
continuing to work with the US Bank Technical Team to create file
layouts for processing Utility Bill Payments. Letters to customers
that submit payments directly via ACH will be mailed out informing
them of our new banking information.
• 2022/2023 Winter Storms Declared Emergency and FEMA Funding - FEMA
staff was on-site Wednesday, April 5, to conduct a Recovery Scope
Meeting (RSM). Finance, Operations, Environmental, and Safety staff
were present and provided FEMA with all necessary documents and
information required. FEMA informed staff that the District may
proceed with emergency repair work on damaged roads if needed.
Additionally, FEMA will work with Operations to conduct a site
visit on April 19, to assess all damaged roads and to compile an
estimate of financial loss. FEMA also offered to work with District
staff to determine if permanent improvements can be made under the
404 and 406 Hazard Mitigation Loss Grant Program. FEMA recommended
that the District first complete the restoration work to pre-storm
conditions and then pursue long-term permanent improvement grants.
• Month-end Reporting and Annual Audit – Each year, the Financial
Audit begins with interim fieldwork that looks at the Year-to-Date
March 31 trial balance. Staff is currently closing the March
financial period. On April 16, staff began reviewing each
individual account and preparing reconciliations for the auditor.
This effort will continue through May.
5
Financial Reporting:
• The financial reporting for March 31, 2023 is as follows:
o For the ninth month ending March 31, 2023, there are total
revenues of $85,380,443 and total expenses of $85,083,700. The
revenues exceeded expenses by $296,743.
• The financial reporting for investments for March 31, 2023 is as
follows:
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of March 31, 2023, total
$108,583,412 with an average yield to maturity of 3.592%. The
total earnings year to date are $1,969,223.
UENGINEERING AND WATER SYSTEM OPERATIONS:
Engineering:
• Vista Diego Hydropneumatic Pump Station Replacement and 12-inch
Pipeline Replacement, 1530 Zone, Vista Diego Road: This project
includes replacement of the existing Pump Station, which serves the
small 1530 Pressure Zone, containing approximately thirty-seven
(37) potable water meters and four (4) hydrants. The project also
includes 1530 Pressure Zone distribution system improvements in
support of the Pump Station Replacement project. An alternative
concept intended to avoid relocating overhead utilities was
presented and well received by District staff on January 31, 2023.
A 60% drawing submittal for temporary trailer mounted pump station
and distribution system improvements was completed March 27, 2023
and a review meeting was held April 10, 2023. The design of the
pump station incorporating alternative retaining walls (rock nail
in lieu of typical CMU) and an alternative surge mitigation design
is progressing. The existing genset will be replaced ahead of the
pump station replacement construction project as part of CIP P2688
(Standby Power Renovations - Potable Water). Bids for a
replacement genset coordinated with the overall pump station
replacement project were received April 5, 2023. The Board award
of the replacement genset is scheduled for the June 7, 2023 Board
meeting. The project is within budget. (P2639, P2680, and P2688)
• RWCWRF Disinfection System Improvements: The project involves the
replacement of the chlorine gas disinfection system with an
ultraviolet (UV) process at the Ralph W. Chapman Water Reclamation
Facility. Consultant selection for design and construction support
to Carollo Engineers was approved by the Board at the June 2021
Board Meeting. Design work initiated in July 2021. Monitoring of
ultraviolet transmittance has been completed and analyzed for
setting the design criteria for the UV equipment. Initial contact
6
with the regulating state agencies has been made. Information on
available equipment manufacturers has been assessed and pre-
procurement procedures completed for designing the project around
the Trojan UV system. A Memorandum of Understanding has been
reached with Trojan for procuring the UV system through the
construction contractor at a bid obtained cost. This will also
reduce materials acquisition delays related to this equipment. The
100% design was submitted in April 2023 and the review is in
process. Bidding of the project is expected to occur in May. The
project is within budget and on schedule. (R2117 and R2157)
• Olympic Parkway Recycled Water Line Replacement: Several main
breaks within the past year of the 20-inch recycled water line in
Olympic Parkway between Heritage Road and La Media Road resulted in
the establishment of this Capital Improvement Program project at
the May 2021 Board meeting. The engineering firm, NV5, was
selected to design the replacement waterline using the District’s
As-Needed Engineering Design Services contract. The project was
bid in October 2022 and bids opened on November 15, 2022. The
construction contract with Burtech was approved by the Board of
Directors at their January 2023 meeting. The City of Chula Vista
permits have been obtained. Consideration was given to potentially
using trenchless installation, but several drawbacks and
limitations eliminated it from selection. Traffic control design
was handled through the As-Needed Traffic Engineering Services
contract. The contractor is preparing submittals and procuring
materials. Mobilization will be scheduled once the material
acquisition timeline is confirmed. The project is within budget.
(R2159)
• Paso de Luz and Vista Sierra Waterlines Replacement: The existing
1950’s steel water lines in the Hillsdale area have been identified
for replacement due to past failures. Under this contract, the
water line between Vista Grande and Vista Sierra will be replaced.
Included in this project is the replacement of a water line between
Paso de Luz and Telegraph Canyon Road in Chula Vista that is
located in an easement on an embankment. The water line has been
isolated due to a leak, removing the redundancy for this
neighborhood. Bids were opened in February 2022 with the
construction contract approved by the Board at the April 2022
meeting. A limited notice to proceed was provided in May 2022 to
begin material acquisition. A Pre-Construction meeting was held on
August 3, 2022 and the formal notice to proceed was issued on
August 8, 2022. Construction started in February 2023 at Vista
Sierra with public outreach made in January. Work is nearing
completion on Vista Sierra and starting at the Paso de Luz site.
The project is within budget. (P2612 & P2616)
7
• 1655-1 Reservoir & Rancho Jamul Hydropneumatic Pump Station: This
project consists of constructing a new 0.5 MG prestressed concrete
potable water tank in Jamul and modifying the existing Rancho Jamul
Hydropneumatic Pump Station (HPS) to become the permanent pump
station to feed the new 1655-1 Reservoir. The project also
includes replacing approximately 1,500 linear feet of existing pipe
that will be experiencing pressure over the rated pressure class
under the new configuration. Richard Brady and Associates (Brady)
delivered the 60% design on July 6, 2022. Staff provided comments
back to Brady on September 7, 2022. Brady is working toward 90%
design. The project is within budget. (P2040, P2642, & P2681)
• Recycled Water Pipeline Cathodic Protection Improvements: This
project includes repairs to existing cathodic protection systems,
such as anode replacement and cathodic test station repairs for
recycled water pipelines located in the Central Area. The
contractor, M-Rae, commenced field work February 2023. The
contractor is working to complete the project in May 2023. The
project is within budget. (R2146)
• Advanced Metering Infrastructure Upgrade Project: This project
will provide the District with the ability to measure water usage
in real-time. This will allow customers to access their
consumption data online and compare historic usage. Currently, the
District has approximately 24,000 AMI-compatible meters installed
throughout the service area. This phase of the project will
install the base antennas, repeaters, as well as network hardware
and software to implement the system. The project was awarded to
OT Electrical at the January 2023 Board meeting. The contract was
executed January 19, 2023. Field work began on April 3, and the
contractor is working on the four (4) sites in the south District.
The project is on schedule and within budget. (P2682)
• 1004-2 & 485-1 Reservoir Interior/Exterior Coating: This project
consists of removing and replacing the interior and exterior
coatings of the 1004-2 (1.4 MG) and the 485-1 (1.0 MG) Reservoirs,
along with providing structural upgrades, to ensure the tanks
comply with both state and federal OSHA standards as well as the
American Water Works Association and the County Health Department
standards. Unified Field Services Corp. (Unified) was awarded the
construction contract at the November 2022 Board Meeting. The
Notice to Proceed was issued on January 3, 2023. Unified
completed the structural upgrades on the 1004-2 tank, and has begun
the recoating of the interior surfaces. Structural work on the
485-1 Tank has also begun. The project is within budget. (P2567 &
P2614)
• FY 2023 Sewage Flows to Metro vs Planned Capacity: The Metro
Amended and Restated Regional Wastewater Disposal Agreement became
effective at the start of FY 2023. The District’s annual capacity
8
of 0.38 MGD (139 MG) is now in effect, though the District would
need to exceed this capacity for three (3) consecutive years before
additional capacity must be acquired. Metro capacity was set based
upon the District’s sewer system requirements through planning year
2050.
The Ralph W. Chapman Water Reclamation Facility again had to reduce
production in March due to rainy weather with a resulting decrease
in recycled water use and plant maintenance. This resulted in more
sewage being sent to the Metro system. Staff anticipates
operations and weather conditions to return to normal in April for
the remainder of the fiscal year. The graph below shows that the
District is still on track to remain under the Metro capacity for
the fiscal year.
• Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2023
up through March 31, 2023:
Date Meters
(Budgeted)
Meters
Sold
(Actual)
EDUs
(Budgeted)
EDUs
Sold
(Actual)
Total $
(Budgeted)
Total $
Collected
(Actual)
March 2023 25.7 102 66.9 208 $206,750 $2,584,936
Totals FY
2023 231 193 601.9 451 $1,860,750 $5,831,139
9
UWater Operations:
• On Friday, March 3rd the 485-1 Reservoir was isolated and drained
for interior and exterior re-coating CIP work. The purpose of re-
coating is to preserve the integrity of the reservoir. This work is
part of the District’s reservoir re-coating program. The District’s
re-coating program is condition and age based. The District will
contract divers to inspect the interior condition of the reservoir
to schedule re-coating work. On average, the District will re-coat
every 20 years.
• On Monday, March 6th, the District continued the Interagency
Assistance with Padre Dam by receiving 16,500 gallons of activated
sludge to help with the advancement of biological activity at the
Treatment Plant due to the plant being offline for the five-year
Chlorine Scrubber Maintenance. The delivery of activated sludge
will help with meeting discharge requirements in a shorter period.
• The following events occurred on Thursday, March 16th:
o Staff worked with Cajon Valley Union School District staff to
identify a water leak in front of the Jamul Elementary School.
Otay staff identified a leak on one of the fire service laterals
that feeds the school. This leak was on the District’s side and
was repaired.
o Staff performed a shutdown on the outlet valve to the 485-1
Reservoir. The outlet valve had leak-by requiring replacement so
the reservoir recoating work could continue. The outlet valve
replacement required water distribution system modifications,
which the normally closed Tierra Nova PRS was opened and
provided primary feed to the 485 zone. The Paseo Del Ray PRS
provides a secondary emergency feed in case of an emergency.
• On Sunday, March 19th, staff responded to a leaking one-inch copper
service that caused minor road damage. Staff replaced the one-inch
copper service and performed temporary repairs to the road until
the District’s as-needed paving contractor returns to perform final
paving.
• On Thursday, March 23rd, SCADA staff and Pump Mechanics assisted
Utility Maintenance by placing 980-2 Pump Station back online after
replacing the suction and discharge pipe insulation gaskets for
cathodic protection. This cathodic protection system will provide
corrosion protection to the suction and discharge piping to the
pump station. The pump station flow meter was also recoated while
the pump station was offline. The 980-1 and 980-2 Pump Stations
10
serve as redundancy for each other. Having this redundancy gives
the District ample time to perform needed preventative and
corrective maintenance as needed.
• On Monday, March 27th, District staff coordinated with inspection
contractor and performed the annual potable floating cover
reservoir inspections on the 711-3, 624-1, and 870-1 Reservoirs.
This yearly inspection is a compliance requirement. No major issues
were noted during the inspections.
• From March 27th – April 10th, the Treatment Plant was offline due to
the required five-year Chlorine Scrubber Maintenance. The
maintenance performed on the Chlorine Scrubber was an inspection of
critical pieces equipment in and around the scrubber, fiberglass
repair and new sodium hydroxide solution was added.
• On March 27th, April 4th, April 7th, and April 13th, process
instrument calibrations were performed at the La Presa Pressure
Reducing Station, 711-1 and 2 Reservoirs, and the Reclamation
Plant. Instrument calibrations are a form of preventative
maintenance performed to ensure proper field control of associated
water systems and accurate reporting of process data and to assist
in mitigating unplanned downtime from unexpected equipment
failures.
• On Tuesday, March 28th, District staff coordinated with an
electrical contractor to perform major preventive maintenance on
the motor control center (MCC) at the 980-1 Pump Station. To
perform this important maintenance, it was necessary to coordinate
with SDG&E for a planned outage. During this preventive
maintenance, a problem was detected in the medium voltage cable
ground terminal, which is scheduled to be repaired by a qualified
contractor on Tuesday, April 18th. A well-planned preventive
maintenance program is key to have dependable operation of pump
stations and facilities, as well as extending the life of these
facilities.
• The following events occurred on Thursday, March 30th:
o Staff performed a mock shutdown on Vista Grande and Vista Sierra
in El Cajon. This mock shutdown was required to identify leak-by
rate in order to tie in a new section of main on Vista Sierra.
This work is related to the steel main replacement CIP on Vista
Sierra. The mock shutdown demonstrated that the existing valves
would work for the upcoming shutdown.
o Utility Maintenance staff attended Rescue Vac Training. Rescue
Vac is a lifesaving equipment that the District purchased in
April 2012 to assist local Fire Departments with performing
11
trench rescues in the event of failure or collapse. A Vactor
truck is set up from a distance and the Rescue Vac equipment is
attached which utilizes pneumatic tools to fracture soil into
small particles which are removed by a high volume of air
utilizing suction tubes to perform the rescue. The training
consisted of one and a half-hour classroom lecture and three and
a half hours hands-on training, providing staff with a better
understanding of the equipment along with the knowledge and
skills necessary to respond to an emergency, which can
potentially save a life. Staff will continue this type of
training at least once a year and will invite the local Fire
Department for joint training and coordination.
• The following events occurred on Thursday, April 6th:
o Staff met at the E. Oxford interconnection with Sweetwater
Authority in Chula Vista, to flush out the interconnection in
preparation of the portable pump test. This flushing allows for
a quicker set up on the pump test day which occurred on
Wednesday, April 12th.
o Staff performed a main pressure check on Piper Ranch Road in the
Otay Mesa area. This pressure check was performed to identify if
the District’s potable water main had a leak that would be
causing trench saturation in this area. There were no
indications of the District’s water main having a leak.
• The following events occurred on Tuesday, April 11th:
o District staff coordinated with a pump contractor to install
pump #1 at 927 Pump Station since the pump was damaged and
needed repair. The damage was caused by a gear failure in
12
December 2022. The pump had significant damage that it required
to be rebuilt. The Treatment Plant and Pump Station each have
four additional pumps that allowed for redundancy during this
repair period.
o Staff assisted SCADA staff with the 450 Recycled inflow meter
transducer sensor replacements. South Bay Wastewater Treatment
Plant coordination was required to isolate the 30-inch
transmission main feeding the 450 Recycled Reservoir. This flow
meter is used for flow verification and City of San Diego’s
billing purposes.
• On Wednesday, April 12th District Operations staff coordinated with
Sweetwater Authority staff at the E. Oxford interconnection for a
portable pump test. This test was performed to evaluate the
District’s ability to take water from Sweetwater Authority during
an emergency at a maximum flow of 1.45 MGD. The pump test was
successful. The District has the ability to move water from
multiple locations using the portable pumps. Some of those
locations are interagency and include Telegraph Canyon Road and
Heritage Road from the City of San Diego and Cherry Hills and E.
Oxford from Sweetwater Authority. All sites were successfully
tested.
• On Friday, April 14th, SCADA staff coordinated the calibration of
the 450 Recycled flow meter. Staff also coordinated with South Bay
Wastewater Treatment Plant staff to ensure no pumping would occur
while the 30-inch transmission main was isolated for the meter
calibration. Calibration went well.
• On Tuesday, April 18th, staff performed a mock shutdown on Airway
Road and Cactus Road in the Otay Mesa area. This mock shutdown was
required for an upcoming shutdown to tie in the new section of
water main. The CIP project is to replace the existing 10-inch AC
13
main with a 12-inch PVC main to provide water service to a new
housing development on the west side of Cactus Road, between Airway
Road and Siempre Viva Road. The mock shutdown demonstrated that the
existing valves would work for the upcoming shutdown.
• During this period, Pump Mechanics completed vibration testing at
the following 14 Pump Stations: 1050 Pump Station, 1100 Hydro
Station, 1200-1 Pump Station, 1296 Pump Station, 1485 Pump Station,
1655 Pump Station, 711-1 Pump Station, 803 Pump Station, 832-1 Pump
Station, 850 Pump Station, 870-2 Pump Station, 944-1 Pump Station,
978 Pump Station, and 980 Pump Station. No serious faults levels
were detected. Vibration testing allows the District to schedule
required repairs and acquire needed parts. It also identifies
faulty equipment offline before a hazardous condition occurs.
• The District has received all of the credits from San Diego Gas and
Electric (SDG&E) for participating in the Emergency Load Reduction
Program (ELRP) events that occurred September 6th through the 9th of
2022 (FY23). During ELRP events, emergency generators can be used
to provide power at District sites to reduce demands on
California’s electric grid and help reduce the possibility of
rolling blackouts. There were 12 electric accounts that were
enrolled in the program. 87% of the credits received came from
five of the 12 accounts. If ELRP events are called in the future,
the District will focus on those five accounts as costs incurred by
the District were greater than the savings realized during the
September event.
UPurchase and Change OrdersU:
• The following table summarizes purchases and change orders issued
during the period from March 21, 2023 through April 16, 2023 that
were within staff signatory authority:
Date Action Amount Project Contractor/
Consultant/Vendor
3/21/23 P.O. $2,598.28 MONTHLY ALARM & ACCESS
INSPECTION/MAINTENANCE
WATCHLIGHT
CORPORATION
3/21/23 P.O. $3,830.00 CONCRETE AND
DOWNSPOUT DRAINAGE
A & F LANDSCAPE
AND CONCRETE
3/27/23 P.O. $12,728.56 COMMERCIAL
DRIVER TRAINING
COMMERCIAL
TRANSPORTATION
3/28/23 P.O. $1,019.95 ONSITE FLU CLINIC RITE AID
CORPORATION
4/3/23
P.O.
$7,749.57
ANNUAL CRADLEPOINT
NETCLOUD SOFTWARE
LICENSE RENEWAL
GHA
TECHNOLOGIES, INC
4/3/23 P.O. $113,000.00 CY2023 LIFE &
STD/LTD INSURANCE SUN LIFE FINANCIAL
14
4/14/23 P.O. $59,540.73 FY2023 Q3
WORKERS' COMP PROGRAM ACWA JPIA
4/16/23 C.O. $1,527.55 1004-2 Reservoir
Coating and Upgrades
(P2567)
UNIFIED FIELD
SERVICES CORP.
UWater Conservation and Sales:
• Water Conservation – March 2023 usage was 15% lower than March 2013
usage. Since March 2022, customers have saved an average of 11%
over 2013 levels.
• Conservation 2020 vs Present – On July 8, 2021, Governor Gavin
Newsom called on Californians to voluntarily reduce water use by
15%. The benchmark year for comparison is 2020. The chart below
shows the difference in usage. March 2023 usage was 14% lower than
March 2020. Since July 2021, customer usage decreased 3.04%
compared to 2020 levels.
15
• Potable Water Purchases – The March potable water purchases were
1,461 acre-feet which is 10.7% below the budget of 1,635 acre-feet.
Fiscal year-to-date potable purchases are 19,983 acre-feet, which
is 7.7% below the cumulative budget of 21,652 acre-feet.
• Recycled Water Purchases – The March recycled water purchases from
the City of San Diego and production at the District’s treatment
facility were 60 acre-feet which is 43.5% below the budget of 107
acre-feet. Fiscal year-to-date recycled purchases and production
are 2,374 acre-feet, which is 12.0% below the cumulative budget of
2,699 acre-feet.
16
• Rainfall for the month of March and year-to-date can be seen in the
table below.
Rainfall March FY-T-D
Actual 3.98 16.88
Historical Average 1.75 7.01
Variance 2.23 (127.4%) 9.87 (140.8%)
UPotable, Recycled, and Sewer (Reporting up to the month of March):
• Total number of potable water meters: 51,617.
• Total number of sewer connections: 4,746.
• Recycled water consumption for the month of March:
o Total consumption: 43.67 acre-feet or 14,229,204 gallons.
o Average daily consumption: 459,006 gallons per day.
o Total cumulative recycled water consumption since March 1, 2022:
2,546.17 acre-feet.
o Total number of recycled water meters: 778.
• Wastewater flows for the month of March:
o Total basin flow: 1,915,032 gallons per day.
▪ This is an increase of 18.2 percent from March 2022.
o Spring Valley Sanitation District flows to Metro: 638,344
gallons per day.
17
o Total Otay flow: 1,276,677 gallons per day.
o Flow processed at the Ralph W. Chapman Water Recycling Facility:
385,903 gallons per day.
o Flow to Metro from Otay Water District: 890,774 gallons per day.
o By the end of March there were 6,752 wastewater EDUs.
Exhibit A
Annual YTD
REVENUES: Budget Actual Budget Variance Var %
Potable Water Sales 61,958,000$ 42,267,142$ 45,355,000$ (3,087,858)$ (6.8%)
Recycled Water Sales 10,217,000 6,799,072 7,530,000 (730,928) (9.7%)
Potable Energy Charges 2,721,000 1,938,348 2,050,000 (111,652) (5.4%)
Potable System Charges 15,168,000 12,073,922 12,045,000 28,922 0.2%
Potable MWD & CWA Fixed Charges 13,547,000 10,263,484 10,179,000 84,484 0.8%
Potable Penalties and Other Fees 914,000 755,293 691,231 64,062 9.3%
Total Water Sales 104,525,000 74,097,261 77,850,231 (3,752,970) (4.8%)
Sewer Charges 3,284,000 2,438,191 2,428,971 9,220 0.4%
Meter Fees 170,000 116,731 127,800 (11,069) (8.7%)
Capacity Fee Revenues 2,311,000 1,946,384 1,733,400 212,984 12.3%
Non-Operating Revenues 2,523,100 2,403,766 1,852,500 551,266 29.8%
Tax Revenues 5,310,000 3,823,494 3,387,000 436,494 12.9%
Interest 495,000 554,616 371,250 183,366 49.4%
Total Revenues 118,618,100$ 85,380,443$ 87,751,152$ (2,370,709)$ (2.7%)
EXPENSES:
Potable Water Purchases 44,250,000$ 30,327,385$ 32,960,500$ 2,633,115$ 8.0%
Recycled Water Purchases 5,487,000 4,099,764 4,099,764 - 0.0%
CWA-Infrastructure Access Charge 2,998,000 2,321,034 2,271,400 (49,634) (2.2%)
CWA-Customer Service Charge 1,881,000 1,416,675 1,407,000 (9,675) (0.7%)
CWA-Reliability Charge 3,003,000 2,258,073 2,238,300 (19,773) (0.9%)
CWA-Emergency Storage Charge 4,711,000 3,552,221 3,533,400 (18,821) (0.5%)
MWD-Capacity Res Charge 762,000 581,081 591,900 10,819 1.8%
MWD-Readiness to Serve Charge 685,000 460,167 505,800 45,633 9.0%
Subtotal Water Purchases 63,777,000 45,016,400 47,608,064 2,591,664 5.4%
Power Charges 3,893,000 3,271,294 2,937,800 (333,494) (11.4%)
Payroll & Related Costs 22,649,100 16,282,003 17,488,000 1,205,997 6.9%
Material & Maintenance 4,132,600 2,967,882 3,099,700 131,818 4.3%
Administrative Expenses 7,602,700 4,794,333 5,692,568 898,235 15.8%
Legal Fees 455,000 683,958 341,100 (342,858) (100.5%)
Expansion Reserve 684,800 513,630 513,630 - 0.0%
Replacement Reserve 8,393,600 6,295,500 6,295,500 - 0.0%
OPEB Trust 2,080,900 1,560,600 1,560,600 - 0.0%
General Fund Reserve 40,400 30,600 30,600 - 0.0%
Rate Stabilization Reserve 19,000 - - - 0.0%
Total Expenses 118,618,100$ 85,083,700$ 89,235,062$ 4,151,362$ 4.7%
EXCESS REVENUES(EXPENSE) -$ 296,743$ (1,483,910)$ 1,780,654$
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THE NINE MONTHS ENDED MARCH 31, 2023
F:/MORPT/FS2023-P9 4/20/2023 10:28 AM
The year-to-date actual net revenues through March show a positive variance of $296,743.
COMPARATIVE BUDGET SUMMARY
NET REVENUE AND EXPENSES
FOR THE NINE MONTHS ENDED MARCH 31, 2023
‐$1,600,000
‐$1,400,000
‐$1,200,000
‐$1,000,000
‐$800,000
‐$600,000
‐$400,000
‐$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
YTD Actual Net Revenues
YTD Budget Net Revenues
YTD Variance in Net Revenues
OTAY WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
March 31, 2023
INVESTMENT OVERVIEW & MARKET STATUS:
At the Federal Reserve Board's regular scheduled meeting on March 22, 2023, the Committee increased the target range for the federal funds
rate from 4.75% to 5.00%. Recent indicators show modest growth in spending and production, and job gains, while the unemployment rate
remains low. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee's
long-term goal is to attain maximum employment and inflation of 2%. The Committee will continue to reduce its holdings of Treasury
securities, agency debt, and agency mortgage-backed securities, as outlined in the Plans for Reducing the Size of the Federal Reserve's
Balance Sheet issued in May 2022. The Committee will continue to observe the effects of incoming information on the economic outlook.
In determining the timing and size of future adjustments to the target range for the federal funds rate, they went on to say: "The Committee
would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's
goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international developments."
The District's effective rate of return for March 2023 was 3.46%, two basis points higher than the previous month. LAIF's return was twenty-
one basis points higher than the last month, reaching an average effective yield of 2.83% for March 2023. Based on our success at maintaining
a competitive rate of return on our portfolio during this period of increasing interest rates, no changes in investment strategy regarding returns
on investment are being considered.
Under the District's Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of safety,
liquidity, and return on investment.
PORTFOLIO COMPLIANCE: March 31, 2023
Investment State Limit Otay Limit Otay Actual
8.01: Treasury Securities 100% 100% 4.43%
8.02: Local Agency Investment Fund (Operations) $75 Million $75 Million $20.34 Million
8.03: Federal Agency Issues 100% 100% 56.52%
8.04: Certificates of Deposit 30% 15% 0
8.05: Short-Term Commercial Notes 25% 10% 0
8.06: Medium-Term Commercial Debt 30% 10% 0
8.07: Money Market Mutual Funds 20% 10% 4.76%
8.08: San Diego County Pool 100% 100% 13.82%
12.0: Maximum Single Financial Institution 100% 50% 2.03%
July
FY22
Aug
FY22
Sep
FY22
1st Qtr
FY22
Oct
FY22
Nov
FY22
Dec
FY22
2nd
Qtr
FY22
Jan
FY22
Feb
FY22
Mar
FY22
3rd
Qtr
FY22
Apr
FY22
May
FY22
June
FY22
4th Qtr
FY22
July
FY23
Aug
FY23
Sep
FY23
1st Qtr
FY23
Oct
FY23
Nov
FY23
Dec
FY23
2nd
Qtr
FY23
Jan
FY23
Feb
FY23
Mar
FY23
3rd
Qtr
FY23
Otay 0.57 0.59 0.57 0.58 0.54 0.52 0.52 0.53 0.52 0.57 0.62 0.57 0.80 0.91 1.10 0.94 1.32 1.46 1.74 1.50 2.06 2.52 2.91 2.49 3.00 3.44 3.46 3.30
LAIF 0.22 0.22 0.21 0.20 0.20 0.20 0.21 0.20 0.23 0.28 0.37 0.29 0.52 0.68 0.86 0.69 1.09 1.28 1.51 1.29 1.77 2.01 2.17 1.98 2.43 2.62 2.83 2.63
Difference 0.35 0.37 0.36 0.38 0.34 0.32 0.31 0.32 0.29 0.29 0.25 0.28 0.28 0.23 0.24 0.25 0.23 0.18 0.23 0.21 0.29 0.51 0.74 0.51 0.57 0.82 0.63 0.67
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Re
t
u
r
n
o
n
I
n
v
e
s
t
m
e
n
t
s
Month
Performance Measure FY-23
Return on Investment
Otay LAIF Difference
Target: Meet or Exceed 100% of LAIF
$2,237,242
2.03%$35,584,155
32.27%
$72,456,370
65.70%
Otay Water District
Investment Portfolio: 03/31/2023
Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies,Treasury Securities & Money Market Mutual Funds
Total Cash and Investments: $110,277,767 (Book Value)
OTAY
Portfolio Management
March 31, 2023
Portfolio Summary
% of
Portfolio
Book
ValueInvestmentsMarket
Value
Par
Value
Days to
MaturityTerm
YTM
360 Equiv.
YTM
365 Equiv.
Federal Agency Issues- Callable 27,594,000.00 64225.54 4.09445927,353,120.0027,600,000.00 4.151
Treasury Securities - Coupon 4,884,107.47 2194.52 4.9671824,892,600.005,000,000.00 5.035
Federal Agency Issues - Bullet 34,733,484.06 79532.15 3.41855934,085,933.5634,796,000.00 3.465
Money Market 5,244,778.69 14.85 4.28615,244,778.695,244,778.69 4.346
Local Agency Investment Fund (LAIF)20,344,360.63 118.83 2.792119,965,736.9820,344,360.63 2.831
San Diego County Pool 15,239,793.78 114.11 3.117114,804,000.0015,239,793.78 3.160
108,040,524.63 100.00%Investments 106,346,169.23108,224,933.10 430 306 3.542 3.592
Cash
(not included in yield calculations)
Passbook/Checking 2,237,242.29 1 0.71212,237,242.292,237,242.29 0.722
110,277,766.92Total Cash and Investments 108,583,411.52110,462,175.39 430 306 3.542 3.592
Current Year
March 31
317,428.97
Fiscal Year To Date
1,969,222.73
Average Daily Balance
Effective Rate of Return
108,081,617.20 106,292,869.92
2.47%3.46%
Total Earnings Month Ending
I hereby certify that the investments contained in this report are made in accordance with the District Investment Policy Number 27 adopted by the Board of Directors on May 11, 2022. The investments
provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures.
__________________________________________________ ____________________
Joseph Beachem, Chief Financial Officer
Portfolio OTAY
AP
Reporting period 03/01/2023-03/31/2023
Run Date: 04/19/2023 - 15:05 PM (PRF_PM1) 7.3.11
Report Ver. 7.3.11
04/21/23
YTM
360
Page 1
Par Value Book Value Maturity
Date
Stated
RateMarket Value
March 31, 2023
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Month End
Days to
MaturityMoody'sCUSIPInvestment #Purchase
Date
Federal Agency Issues- Callable
1.294Federal Home Loan Bank2395 2,000,000.00 1,994,000.00 07/26/20241.08002/03/2022 1,910,100.00 Aaa3130AQL68 482
1.973Federal Home Loan Bank2396 2,000,000.00 2,000,000.00 03/28/20242.00003/30/2022 1,945,780.00 Aaa3130ARE31 362
2.615Federal Home Loan Bank2398 2,000,000.00 2,000,000.00 02/16/20242.65005/16/2022 1,962,840.00 Aaa3130ARWD9 321
3.652Federal Home Loan Bank2401 3,000,000.00 3,000,000.00 06/13/20243.70009/13/2022 2,963,370.00 Aaa3130AT4S3 439
4.438Federal Home Loan Bank2403 3,000,000.00 3,000,000.00 10/28/20244.50011/03/2022 2,991,780.00 Aaa3130ATLK1 576
4.818Federal Home Loan Bank2412 5,000,000.00 5,000,000.00 10/27/20234.87501/27/2023 4,988,700.00 P-13130AUGF5 209
4.932Federal Home Loan Mortgage2406 3,000,000.00 3,000,000.00 04/25/20255.00010/25/2022 2,995,500.00 Aaa3134GX6A7 755
4.932Federal Home Loan Mortgage2407 1,600,000.00 1,600,000.00 11/08/20245.00011/08/2022 1,598,800.00 Aaa3134GX5C4 587
5.055Federal Home Loan Mortgage2408 3,000,000.00 3,000,000.00 11/22/20245.12511/28/2022 3,000,450.00 Aaa3134GY3P5 601
5.001Federal Home Loan Mortgage2409 3,000,000.00 3,000,000.00 05/23/20245.07011/23/2022 2,995,800.00 Aaa3134GY3Q3 418
27,594,000.0027,353,120.0027,600,000.0027,593,822.75Subtotal and Average 4.094 459
Treasury Securities - Coupon
4.967US TREASURY2414 5,000,000.00 4,884,107.47 09/30/20230.25002/23/2023 4,892,600.00 Aaa91282CDA6 182
4,884,107.474,892,600.005,000,000.004,874,555.89Subtotal and Average 4.967 182
Federal Agency Issues - Bullet
2.855Federal Farm Credit Bank2397 2,000,000.00 1,994,297.61 04/25/20252.75004/26/2022 1,940,400.00 Aaa3133ENVC1 755
4.261Federal Farm Credit Bank2402 3,000,000.00 2,995,130.42 09/30/20254.25009/30/2022 3,013,650.00 Aaa3133ENP95 913
4.488Federal Farm Credit Bank2405 3,000,000.00 2,992,310.47 10/17/20244.37510/19/2022 2,992,890.00 Aaa3133ENS43 565
4.284Federal Farm Credit Bank2410 3,000,000.00 2,995,403.41 12/20/20244.25012/20/2022 2,990,520.00 Aaa3133EN4N7 629
3.361Federal Home Loan Bank2399 3,000,000.00 2,999,600.00 09/01/20233.37509/01/2022 2,980,980.00 Aaa3130AT5B9 153
3.449Federal Home Loan Bank2400 3,000,000.00 2,995,833.40 06/14/20243.37509/08/2022 2,955,810.00 Aaa3130AT4D6 440
4.338Federal Home Loan Bank2404 3,000,000.00 2,999,085.55 09/13/20244.37510/18/2022 2,995,260.00 Aaa3130ATND5 531
4.724Federal Home Loan Bank2411 2,000,000.00 1,999,443.35 12/15/20234.75012/20/2022 2,000,380.00 Aaa3130AUBA1 258
4.912Federal Home Loan Bank2413 5,000,000.00 5,000,870.43 11/08/20235.00002/10/2023 5,006,300.00 P-13130AUUB8 221
0.612Federal Home Loan Mortgage2391 1,045,000.00 1,038,719.17 09/23/20250.37509/16/2021 954,722.45 Aaa3137EAEX3 906
0.618Federal Home Loan Mortgage2392 2,751,000.00 2,734,124.17 09/23/20250.37509/22/2021 2,513,341.11 Aaa3137EAEX3 906
0.996Federal National Mortage Assoc2393 2,000,000.00 2,021,339.29 01/07/20251.62512/09/2021 1,911,860.00 Aaa3135G0X24 647
1.129Federal National Mortage Assoc2394 2,000,000.00 1,967,326.79 11/07/20250.50012/15/2021 1,829,820.00 Aaa3135G06G3 951
34,733,484.0634,085,933.5634,796,000.0034,732,447.25Subtotal and Average 3.418 559
Money Market
2.012Blackrock T - Fund Inst9010 10,333.69 10,333.69 2.04010,333.69RESERVE-10A WRB 1
2.012Blackrock T - Fund Inst9011 21,438.35 21,438.35 2.04021,438.35RESERVE 10 BABS 1
4.300FIRST AMERICAN US TREASURY9016 5,213,006.65 5,213,006.65 4.3605,213,006.65OWD TRUST & CUS 1
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 PM (PRF_PM2) 7.3.11
Report Ver. 7.3.11
YTM
360
Page 2
Par Value Book Value Maturity
Date
Stated
RateMarket Value
March 31, 2023
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Month End
Days to
MaturityMoody'sCUSIPInvestment #Purchase
Date
5,244,778.695,244,778.695,244,778.69780,473.52Subtotal and Average 4.286 1
Local Agency Investment Fund (LAIF)
2.792STATE OF CALIFORNIA9001 20,344,360.63 20,344,360.63 2.83119,965,736.98LAIF 1
20,344,360.6319,965,736.9820,344,360.6323,579,844.50Subtotal and Average 2.792 1
San Diego County Pool
3.117San Diego County9007 15,239,793.78 15,239,793.78 3.16014,804,000.00SD COUNTY POOL 1
15,239,793.7814,804,000.0015,239,793.7815,113,536.59Subtotal and Average 3.117 1
108,081,617.20 108,224,933.10 3.542 306106,346,169.23 108,040,524.63Total and Average
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 PM (PRF_PM2) 7.3.11
YTM
360
Page 3
Par Value Book Value Stated
RateMarket Value
March 31, 2023
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
Month End
Days to
MaturityMoody'sCUSIPInvestment #Purchase
Date
Union Bank
0.000STATE OF CALIFORNIA9002 100.02 100.02100.02UNION MONEY 1
0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1
0.740STATE OF CALIFORNIA9004 2,152,456.26 2,152,456.26 0.7502,152,456.26UNION OPERATING 1
0.000STATE OF CALIFORNIA9005 28,220.87 28,220.8707/01/2022 28,220.87PAYROLL 1
0.000STATE OF CALIFORNIA9014 53,515.14 53,515.1407/01/2022 53,515.14UBNA-FLEX ACCT 1
0.00
108,081,617.20 110,462,175.39 3.542 306
1Average Balance
108,583,411.52 110,277,766.92Total Cash and Investments
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 PM (PRF_PM2) 7.3.11
Month End
Activity Report
Sorted By Issuer
March 1, 2023 - March 31, 2023
Current
Rate
Transaction
Date BalanceBeginning
Balance
Ending
Par Value
Percent
of Portfolio
Par Value
CUSIP Investment #Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: Blackrock T - Fund Inst
Money Market
Blackrock T - Fund Inst9010 1,987.212.040 0.00RESERVE-10A WRB
Blackrock T - Fund Inst9011 5,212.232.040 0.00RESERVE 10 BABS
0.0024,572.60 31,772.04Subtotal and Balance 7,199.44
7,199.44 0.0024,572.60 31,772.040.029%Issuer Subtotal
Issuer: STATE OF CALIFORNIA
Union Bank
STATE OF CALIFORNIA9004 1,473,162.790.750 0.00UNION OPERATING
STATE OF CALIFORNIA9014 50,101.40 10,365.33UBNA-FLEX ACCT
10,365.33724,343.43 2,237,242.29Subtotal and Balance 1,523,264.19
Local Agency Investment Fund (LAIF)
STATE OF CALIFORNIA9001 5,500,000.002.831 10,800,000.00LAIF
10,800,000.0025,644,360.63 20,344,360.63Subtotal and Balance 5,500,000.00
7,023,264.19 10,810,365.3326,368,704.06 22,581,602.9220.443%Issuer Subtotal
Issuer: FIRST AMERICAN US TREASURY
Money Market
FIRST AMERICAN US TREASURY9016 5,202,053.704.360 0.00OWD TRUST & CUS
0.0010,952.95 5,213,006.65Subtotal and Balance 5,202,053.70
5,202,053.70 0.0010,952.95 5,213,006.654.719%Issuer Subtotal
Issuer: Federal Farm Credit Bank
Federal Agency Issues - Bullet
11,000,000.00 11,000,000.00Subtotal and Balance
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 DA (PRF_DA) 7.3.11
Report Ver. 7.3.11
Current
Rate
Transaction
Date BalanceBeginning
Balance
Ending
Par Value
Page 2
Percent
of Portfolio
Par Value
March 1, 2023 - March 31, 2023
Activity Report
Month End
CUSIP Investment #Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
0.00 0.0011,000,000.00 11,000,000.009.958%Issuer Subtotal
Issuer: Federal Home Loan Bank
Federal Agency Issues- Callable
17,000,000.00 17,000,000.00Subtotal and Balance
Federal Agency Issues - Bullet
16,000,000.00 16,000,000.00Subtotal and Balance
0.00 0.0033,000,000.00 33,000,000.0029.874%Issuer Subtotal
Issuer: Federal Home Loan Mortgage
Federal Agency Issues- Callable
10,600,000.00 10,600,000.00Subtotal and Balance
Federal Agency Issues - Bullet
3,796,000.00 3,796,000.00Subtotal and Balance
0.00 0.0014,396,000.00 14,396,000.0013.033%Issuer Subtotal
Issuer: Federal National Mortage Assoc
Federal Agency Issues - Bullet
4,000,000.00 4,000,000.00Subtotal and Balance
0.00 0.004,000,000.00 4,000,000.003.621%Issuer Subtotal
Issuer: San Diego County
San Diego County Pool
San Diego County9007 134,964.583.160 0.00SD COUNTY POOL
0.0015,104,829.20 15,239,793.78Subtotal and Balance 134,964.58
134,964.58 0.0015,104,829.20 15,239,793.7813.796%Issuer Subtotal
Issuer: US TREASURY
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 DA (PRF_DA) 7.3.11
Report Ver. 7.3.11
Current
Rate
Transaction
Date BalanceBeginning
Balance
Ending
Par Value
Page 3
Percent
of Portfolio
Par Value
March 1, 2023 - March 31, 2023
Activity Report
Month End
CUSIP Investment #Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: US TREASURY
Treasury Securities - Coupon
5,000,000.00 5,000,000.00Subtotal and Balance
0.00 0.005,000,000.00 5,000,000.004.526%Issuer Subtotal
108,905,058.81 110,462,175.39Total10,810,365.3312,367,481.91100.000%
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 DA (PRF_DA) 7.3.11
Report Ver. 7.3.11
Month End
Duration Report
Sorted by Investment Type - Investment Type
Through 03/31/2023
Investment #Security ID Issuer Investment
Class
Book
Value
Par
Value
Market
Value
Current
Rate
YTM Current
Yield
Maturity/
Call Date DurationModified360Fund
Federal Home Loan Bank239599 2,000,000.00 1,910,100.003130AQL68 4.632 07/26/2024 1.2811,994,000.00 1.294Fair1.0800000
Federal Home Loan Bank239699 2,000,000.00 1,945,780.003130ARE31 4.833 03/28/2024 0.9632,000,000.00 1.973Fair2.0000000
Federal Home Loan Bank239899 2,000,000.00 1,962,840.003130ARWD9 4.848 02/16/2024 0.8472,000,000.00 2.615Fair2.6500000
Federal Home Loan Bank240199 3,000,000.00 2,963,370.003130AT4S3 4.763 06/13/2024 1.1453,000,000.00 3.652Fair3.7000000
Federal Home Loan Bank240399 3,000,000.00 2,991,780.003130ATLK1 4.685 10/28/2024 1.4743,000,000.00 4.438Fair4.5000000
Federal Home Loan Mortgage240699 3,000,000.00 2,995,500.003134GX6A7 5.079 04/25/2025 1.8993,000,000.00 4.932Fair5.0000000
Federal Home Loan Mortgage240799 1,600,000.00 1,598,800.003134GX5C4 5.052 11/08/2024 1.4921,600,000.00 4.932Fair5.0000000
Federal Home Loan Mortgage240899 3,000,000.00 3,000,450.003134GY3P5 5.119 11/22/2024 1.5303,000,000.00 5.055Fair5.1250000
Federal Home Loan Mortgage240999 3,000,000.00 2,995,800.003134GY3Q3 5.203 05/23/2024 1.0793,000,000.00 5.001Fair5.0700000
Federal Home Loan Bank241299 5,000,000.00 4,988,700.003130AUGF5 5.288 10/27/2023 0.5515,000,000.00 4.818Fair4.8750000
US TREASURY241499 5,000,000.00 4,892,600.0091282CDA6 4.657 09/30/2023 0.4984,884,107.47 4.967Fair.25000000
Federal Home Loan Mortgage239199 1,045,000.00 954,722.453137EAEX3 4.076 09/23/2025 2.4181,038,719.17 0.612Fair.37500000
Federal Home Loan Mortgage239299 2,751,000.00 2,513,341.113137EAEX3 4.076 09/23/2025 2.4182,734,124.17 0.618Fair.37500000
Federal National Mortage Assoc239399 2,000,000.00 1,911,860.003135G0X24 4.242 01/07/2025 1.7052,021,339.29 0.996Fair1.6250000
Federal National Mortage Assoc239499 2,000,000.00 1,829,820.003135G06G3 3.977 11/07/2025 2.5301,967,326.79 1.129Fair.50000000
Federal Farm Credit Bank239799 2,000,000.00 1,940,400.003133ENVC1 4.273 04/25/2025 1.9561,994,297.61 2.855Fair2.7500000
Federal Home Loan Bank239999 3,000,000.00 2,980,980.003130AT5B9 4.904 09/01/2023 0.4192,999,600.00 3.361Fair3.3750000
Federal Home Loan Bank240099 3,000,000.00 2,955,810.003130AT4D6 4.652 06/14/2024 1.1502,995,833.40 3.449Fair3.3750000
Federal Farm Credit Bank240299 3,000,000.00 3,013,650.003133ENP95 4.057 09/30/2025 2.3472,995,130.42 4.261Fair4.2500000
Federal Home Loan Bank240499 3,000,000.00 2,995,260.003130ATND5 4.490 09/13/2024 1.3872,999,085.55 4.338Fair4.3750000
Federal Farm Credit Bank240599 3,000,000.00 2,992,890.003133ENS43 4.537 10/17/2024 1.4482,992,310.47 4.488Fair4.3750000
Federal Farm Credit Bank241099 3,000,000.00 2,990,520.003133EN4N7 4.446 12/20/2024 1.6212,995,403.41 4.284Fair4.2500000
Federal Home Loan Bank241199 2,000,000.00 2,000,380.003130AUBA1 4.732 12/15/2023 0.6771,999,443.35 4.724Fair4.7500000
Federal Home Loan Bank241399 5,000,000.00 5,006,300.003130AUUB8 4.793 11/08/2023 0.5825,000,870.43 4.912Fair5.0000000
Portfolio OTAY
NL! APPage 1Data Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 DU (PRF_DU) 7.3.11
Report Ver. 7.3.11
Investment #Security ID Issuer Investment
Class
Book
Value
Par
Value
Market
Value
Current
Rate
YTM Current
Yield
Maturity/
Call Date DurationModified360
Sorted by Investment Type - Investment Type
Duration Report
Month End
Through 03/31/2023
Fund
Blackrock T - Fund Inst901099 10,333.69 10,333.69RESERVE-10A 2.040 0.00010,333.69 2.012Amort2.0400000
Blackrock T - Fund Inst901199 21,438.35 21,438.35RESERVE 10 2.040 0.00021,438.35 2.012Amort2.0400000
FIRST AMERICAN US TREASURY901699 5,213,006.65 5,213,006.65OWD TRUST &4.360 0.0005,213,006.65 4.300Amort4.3600000
STATE OF CALIFORNIA900199 20,344,360.63 19,965,736.98LAIF 2.831 0.00020,344,360.63 2.792Fair2.8310000
San Diego County900799 15,239,793.78 14,804,000.00SD COUNTY 3.160 0.00015,239,793.78 3.117Fair3.1600000
4.115 0.792108,040,524.63 108,224,933.10 106,346,169.23Report Total
† = Duration can not be calculated on these investments due to incomplete Market price data.
Portfolio OTAY
NL! APPage 2Data Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 DU (PRF_DU) 7.3.11
Report Ver. 7.3.11
Month End
GASB 31 Compliance Detail
Sorted by Fund - Fund
March 1, 2023 - March 31, 2023
Investment #Maturity
Date
Beginning
Invested Value
Purchase
of Principal
InvestmentClassFundCUSIP
Adjustment in Value
Ending
Invested Value
Addition
to Principal
Redemption
of Principal
Amortization
Adjustment
Change in
Market Value
Fund: Treasury Fund
2409 2,986,770.00Fair Value 05/23/2024 9,030.0099 2,995,800.003134GY3Q30.00 0.00 0.00 0.00
2408 2,981,640.00Fair Value 11/22/2024 18,810.0099 3,000,450.003134GY3P50.00 0.00 0.00 0.00
2406 2,975,250.00Fair Value 04/25/2025 20,250.0099 2,995,500.003134GX6A70.00 0.00 0.00 0.00
2407 1,591,072.00Fair Value 11/08/2024 7,728.0099 1,598,800.003134GX5C40.00 0.00 0.00 0.00
2391 939,151.95Fair Value 09/23/2025 15,570.5099 954,722.453137EAEX30.00 0.00 0.00 0.00
2392 2,472,351.21Fair Value 09/23/2025 40,989.9099 2,513,341.113137EAEX30.00 0.00 0.00 0.00
2394 1,793,080.00Fair Value 11/07/2025 36,740.0099 1,829,820.003135G06G30.00 0.00 0.00 0.00
2393 1,885,960.00Fair Value 01/07/2025 25,900.0099 1,911,860.003135G0X240.00 0.00 0.00 0.00
2395 1,887,420.00Fair Value 07/26/2024 22,680.0099 1,910,100.003130AQL680.00 0.00 0.00 0.00
2398 1,949,020.00Fair Value 02/16/2024 13,820.0099 1,962,840.003130ARWD90.00 0.00 0.00 0.00
2399 2,970,960.00Fair Value 09/01/2023 10,020.0099 2,980,980.003130AT5B90.00 0.00 0.00 0.00
2396 1,931,420.00Fair Value 03/28/2024 14,360.0099 1,945,780.003130ARE310.00 0.00 0.00 0.00
2403 2,964,990.00Fair Value 10/28/2024 26,790.0099 2,991,780.003130ATLK10.00 0.00 0.00 0.00
2404 2,968,200.00Fair Value 09/13/2024 27,060.0099 2,995,260.003130ATND50.00 0.00 0.00 0.00
2411 1,992,960.00Fair Value 12/15/2023 7,420.0099 2,000,380.003130AUBA10.00 0.00 0.00 0.00
2412 4,982,900.00Fair Value 10/27/2023 5,800.0099 4,988,700.003130AUGF50.00 0.00 0.00 0.00
2401 2,940,450.00Fair Value 06/13/2024 22,920.0099 2,963,370.003130AT4S30.00 0.00 0.00 0.00
2413 4,991,650.00Fair Value 11/08/2023 14,650.0099 5,006,300.003130AUUB80.00 0.00 0.00 0.00
2400 2,931,090.00Fair Value 06/14/2024 24,720.0099 2,955,810.003130AT4D60.00 0.00 0.00 0.00
9004 679,293.47Amortized 0.0099 2,152,456.26UNION OPERATING 0.00 1,473,162.79 0.00 0.00
9002 100.02Amortized 0.0099 100.02UNION MONEY 0.00 0.00 0.00 0.00
9014 13,779.07Amortized 0.0099 53,515.14UBNA-FLEX ACCT 0.00 50,101.40 10,365.33 0.00
9005 28,220.87Amortized 0.0099 28,220.87PAYROLL0.00 0.00 0.00 0.00
9001 25,167,100.05Fair Value 98,636.9399 19,965,736.98LAIF0.00 5,500,000.00 10,800,000.00 0.00
9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00
2405 2,963,610.00Fair Value 10/17/2024 29,280.0099 2,992,890.003133ENS430.00 0.00 0.00 0.00
2410 2,957,520.00Fair Value 12/20/2024 33,000.0099 2,990,520.003133EN4N70.00 0.00 0.00 0.00
2397 1,911,520.00Fair Value 04/25/2025 28,880.0099 1,940,400.003133ENVC10.00 0.00 0.00 0.00
2402 2,968,020.00Fair Value 09/30/2025 45,630.0099 3,013,650.003133ENP950.00 0.00 0.00 0.00
2414 4,861,550.00Fair Value 09/30/2023 31,050.0099 4,892,600.0091282CDA60.00 0.00 0.00 0.00
9007 14,570,000.00Fair Value 99,035.4299 14,804,000.00SD COUNTY POOL 0.00 134,964.58 0.00 0.00
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 GD (PRF_GD) 7.3.11
Report Ver. 7.3.11
Investment #Maturity
Date
Beginning
Invested Value
Purchase
of Principal
InvestmentClass
Sorted by Fund - Fund
Fund
Page 2
CUSIP
Adjustment in Value
Ending
Invested Value
Addition
to Principal
Redemption
of Principal
Amortization
Adjustment
Change in
Market Value
GASB 31 Compliance Detail
Month End
Fund: Treasury Fund
9016 10,952.95Amortized 0.0099 5,213,006.65OWD TRUST & CUS 0.00 5,202,053.70 0.00 0.00
9010 8,346.48Amortized 0.0099 10,333.69RESERVE-10A WRB 0.00 1,987.21 0.00 0.00
9011 16,226.12Amortized 0.0099 21,438.35RESERVE 10 BABS 0.00 5,212.23 0.00 0.00
106,295,524.19Subtotal 730,770.75 108,583,411.520.00 12,367,481.91 10,810,365.33 0.00
106,295,524.19Total 108,583,411.52730,770.750.00 12,367,481.91 10,810,365.33 0.00
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 GD (PRF_GD) 7.3.11
Report Ver. 7.3.11
Month End
Interest Earnings
Sorted by Fund - Fund
March 1, 2023 - March 31, 2023
Yield on Beginning Book Value
Maturity
Date
Current
Rate
Ending
Par Value
EndingSecurityTypeFundBook ValueBeginningBook Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIPInvestment #Interest
Earned
Fund: Treasury Fund
3,000,000.0024093,000,000.00 5.070MC105/23/2024 12,675.00 0.00 12,675.004.975993,000,000.003134GY3Q3
3,000,000.0024083,000,000.00 5.125MC111/22/2024 12,812.50 0.00 12,812.505.029993,000,000.003134GY3P5
3,000,000.0024063,000,000.00 5.000MC104/25/2025 12,500.00 0.00 12,500.004.906993,000,000.003134GX6A7
1,600,000.0024071,600,000.00 5.000MC111/08/2024 6,666.67 0.00 6,666.674.906991,600,000.003134GX5C4
1,038,719.1723911,045,000.00 0.375FAC09/23/2025 326.56 211.24 537.800.610991,038,507.933137EAEX3
2,734,124.1723922,751,000.00 0.375FAC09/23/2025 859.69 567.57 1,427.260.615992,733,556.603137EAEX3
1,967,326.7923942,000,000.00 0.500FAC11/07/2025 833.33 1,047.22 1,880.551.126991,966,279.573135G06G3
2,021,339.2923932,000,000.00 1.625FAC01/07/2025 2,708.33 -1,006.57 1,701.760.991992,022,345.863135G0X24
1,994,000.0023952,000,000.00 1.080MC107/26/2024 1,800.00 378.95 2,178.951.287991,993,621.053130AQL68
2,000,000.0023982,000,000.00 2.650MC102/16/2024 4,416.67 0.00 4,416.672.600992,000,000.003130ARWD9
2,999,600.0023993,000,000.00 3.375FAC09/01/2023 8,437.50 80.00 8,517.503.343992,999,520.003130AT5B9
2,000,000.0023962,000,000.00 2.000MC103/28/2024 3,333.33 0.00 3,333.331.962992,000,000.003130ARE31
3,000,000.0024033,000,000.00 4.500MC110/28/2024 11,250.00 0.00 11,250.004.415993,000,000.003130ATLK1
2,999,085.5524043,000,000.00 4.375FAC09/13/2024 10,937.50 52.56 10,990.064.315992,999,032.993130ATND5
1,999,443.3524112,000,000.00 4.750FAC12/15/2023 7,916.66 65.75 7,982.414.701991,999,377.603130AUBA1
5,000,000.0024125,000,000.00 4.875MC110/27/2023 20,312.50 0.00 20,312.504.783995,000,000.003130AUGF5
3,000,000.0024013,000,000.00 3.700MC106/13/2024 9,250.00 0.00 9,250.003.630993,000,000.003130AT4S3
5,000,870.4324135,000,000.00 5.000FAC11/08/2023 20,833.34 -120.33 20,713.014.877995,000,990.763130AUUB8
2,995,833.4024003,000,000.00 3.375FAC06/14/2024 8,437.50 288.68 8,726.183.430992,995,544.723130AT4D6
2,152,456.2690042,152,456.26 0.750PA1 856.23 0.00 856.231.48499679,293.47UNION OPERATING
100.029002100.02PA1 0.00 0.00 0.0099100.02UNION MONEY
53,515.14901453,515.14PA1 0.00 0.00 0.009913,779.07UBNA-FLEX ACCT
28,220.87900528,220.87PA1 0.00 0.00 0.009928,220.87PAYROLL
20,344,360.63900120,344,360.63 2.831LA1 56,695.64 0.00 56,695.642.6039925,644,360.63LAIF
2,950.0090032,950.00PA1 0.00 0.00 0.00992,950.00PETTY CASH
2,992,310.4724053,000,000.00 4.375FAC10/17/2024 10,937.50 414.90 11,352.404.468992,991,895.573133ENS43
2,995,403.4124103,000,000.00 4.250FAC12/20/2024 10,625.00 222.78 10,847.784.264992,995,180.633133EN4N7
1,994,297.6123972,000,000.00 2.750FAC04/25/2025 4,583.33 229.94 4,813.272.842991,994,067.673133ENVC1
2,995,130.4224023,000,000.00 4.250FAC09/30/2025 10,625.00 162.50 10,787.504.241992,994,967.923133ENP95
4,884,107.4724145,000,000.00 0.250TRC09/30/2023 1,064.37 19,739.94 20,804.315.036994,864,367.5391282CDA6
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 IE (PRF_IE) 7.3.11
Report Ver. 7.3.11
Maturity
Date
Current
Rate
Ending
Par Value
EndingSecurityTypeFund
Page 2
Book ValueBeginningBook Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
March 1, 2023 - March 31, 2023
Interest Earnings
Month End
Annualized
YieldCUSIPInvestment #Interest
Earned
Fund: Treasury Fund
15,239,793.78900715,239,793.78 3.160LA3 40,562.24 0.00 40,562.243.1629915,104,829.20SD COUNTY POOL
5,213,006.6590165,213,006.65 4.360PA2 2,791.16 0.00 2,791.16300.0449910,952.95OWD TRUST & CUS
10,333.69901010,333.69 2.040PA2 15.49 0.00 15.492.185998,346.48RESERVE-10A WRB
21,438.35901121,438.35 2.040PA2 30.80 0.00 30.802.2359916,226.12RESERVE 10 BABS
110,462,175.39Subtotal 110,277,766.92 3.389 317,428.9722,335.13295,093.84108,698,315.21
110,462,175.39Total 110,277,766.92 3.389 317,428.9722,335.13295,093.84108,698,315.21
Portfolio OTAY
NL! APData Updated: SET_PM1: 04/19/2023 15:06
Run Date: 04/19/2023 - 15:06 IE (PRF_IE) 7.3.11
Report Ver. 7.3.11
SUMMARY FOR PERIOD 3/23/2023 - 4/19/2023 NET DEMANDS
$)&$,4
70*%$)&$,4
505"-$)&$,4
8*3&50
#&/&'*54$003%*/"5034%&/5"-$0#3"$-"*.4 ."3
#&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&& ."3
#&/&'*54$003%*/"5034%&/5"-#&/&'*54"%.*/'&& ."3
$*5:53&"463&33&$-"*.&%8"5&3163$) $:5",&031":
05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/
05":8"5&3%*453*$5#*8&&,-:1":30--%&%6$5*0/
16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/
16#-*$&.1-0:&&43&54:45&.#*8&&,-:1&34$0/53*#65*0/
4"/%*&(0$06/5:8"5&3"65)8"5&3%&-*7&3*&4$)"3(&4 '&#
6/*0/#"/,#*8&&,-:1":30--5"9&4
6/*0/#"/,#*8&&,-:1":30--5"9&4
64#"/,$"-$"3%&91&/4&4 .0/5)-:
70:"'*/"/$*"-#*8&&,-:"1-"/
70:"'*/"/$*"-#*8&&,-:"1-"/
TOTAL CASH DISBURSEMENTS $ 8,729,587.68
RECOMMENDED ACTION:
5IBUUIF#PBSESFDFJWFEUIFBUUBDIFEMJTUPGEFNBOET
+C"UUBDINFOU
PURPOSE:
"UUBDIFEJTUIFMJTUPGEFNBOETGPSUIF#PBSEhTJOGPSNBUJPO
FISCAL IMPACT:
STAFF REPORT
TYPE MEETING:
SUBMITTED BY:
APPROVED BY:
APPROVED BY:
SUBJECT:
3FHVMBS#PBSE
&JE'BLIPVSJ
'JOBODF.BOBHFS
5SFBTVSZ"DDPVOUJOH4FSWJDFT
+PTFQI#FBDIFN
$IJFG'JOBODJBM0GGJDFS
+PTF.BSUJOF[
(FOFSBM.BOBHFS
"DDPVOUT1BZBCMF%FNBOE-JTU
MEETING DATE:
W.O./G.F. NO: DIV. NO.
.BZ
Check Total
1,792.20
6,306.86
782.50
CHECK REGISTER
Otay Water District
Date Range: 3/23/2023 - 4/19/2023
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2059633 04/12/23 15416 24 HOUR ELEVATOR INC 140574 04/01/23 ELEVATOR GENERAL MAINTENANCE FY23 591.79 591.79
2059596 04/05/23 16216 A & F LANDSCAPE AND CONCRETE 2253 03/27/23 CONCRETE AND DOWNSPOUT DRAINAGE 3,830.00 3,830.00
2059634 04/12/23 08488 ABLEFORCE INC 11518 04/04/23 SHAREPOINT & INTRANET SUPP SVCS FY23 150.00 150.00
2059661 04/19/23 18122 ACC BUSINESS 230764138 03/27/23 INTERNET CIRCUITS (MAR 2023)1,323.91 1,323.91
2059572 03/29/23 21787 ACIALY LAVIE Ref002689827 03/27/23 UB Refund Cst #0000208507 118.06 118.06
2059662 04/19/23 17989 ADS CORP 22446.22-0323 03/28/23 SEWER FLOW MONITORING FY23 890.00 890.00
2059597 04/05/23 07732 AIRGAS SPECIALTY PRODUCTS INC 9136050829 03/16/23 AS-NEEDED AQUA AMMONIA FY23 1,188.60
9136050830 03/16/23 AS-NEEDED AQUA AMMONIA FY23 603.60
2059573 03/29/23 21790 ALEXANDER FORTUNATO Ref002689830 03/27/23 UB Refund Cst #0000259332 141.68 141.68
2059663 04/19/23 14256 ALLIANT INSURANCE SERVICES INC 2192988 04/03/23 INSURANCE CONSULTING SERVICES FY23 7,249.97 7,249.97
2059574 03/29/23 21791 ANDREW BEDOYA Ref002689831 03/27/23 UB Refund Cst #0000267044 49.44 49.44
2059575 03/29/23 21789 APOLONIA TINIO Ref002689829 03/27/23 UB Refund Cst #0000239929 5.59 5.59
2059598 04/05/23 03492 AQUA-METRIC SALES COMPANY 0093693 03/09/23 INVENTORY 3,606.27
0093692 03/09/23 OMNI 4" AND 6" C2 REG 2,700.59
2059664 04/19/23 17264 ARTIANO SHINOFF ABED 306823 04/17/23 PROF SERV - MAR 2023 43,793.05 43,793.05
2059665 04/19/23 20199 ASSOC OF CA WATER AGENCIES QTR 3 WC 03/31/23 FY2023 WORKERS' COMP PROGRAM (QTR 3)59,540.73 59,540.73
2059586 03/29/23 07785 AT&T 000019629552 03/12/23 TELEPHONE SERVICES (02/12/23 - 03/11/23)3,802.43 3,802.43
2059666 04/19/23 20125 AZTEC LANDSCAPING INC J1463 03/31/23 JANITORIAL SERVICES FY23 8,578.00 8,578.00
2059635 04/12/23 03326 BAKER ELECTRIC & RENEWABLES 2518 03/30/23 MAINTENANCE ON ELECTRICAL AT 980-1 PS 19,560.00 19,560.00
2059599 04/05/23 00145 BARRETT ENGINEERED PUMPS 128598 03/16/23 870 HYDRO PUMP 4,536.28 4,536.28
2059600 04/05/23 20374 CALBURTON INC CAL1236 03/17/23 UTILITY LOCATING SERVICES (FEB 2023)14,840.00 14,840.00
2059601 04/05/23 21722 CASPER COMPANY 230140-0 02/28/23 SAW CUTTING SERVICES 463.75
230139-0 02/28/23 SAW CUTTING SERVICES 318.75
Page 1 of 8
748.00
6,136.10
1,643.00
3,107.90
1,422.47
2059667 04/19/23 10571 CCL CONTRACTING 203312023 04/04/23 WATER LINE REPLACEMENT (8/1/22-3/31/23)322,667.50 322,667.50
2059576 03/29/23 21788 CELINA EDWARDS Ref002689828 03/27/23 UB Refund Cst #0000239177 11.16 11.16
2059668 04/19/23 19833 CHARLES F NEUMAN 005 04/05/23 OUTSIDE SERVICES (PHOTOGRAPHY SERV)650.00 650.00
2059602 04/05/23 00234 CITY TREASURER 1000350604 02/21/23 WATER DELIVERIES (FY 2022)13,458.45 13,458.45
2059669 04/19/23 04119 CLARKSON LAB & SUPPLY INC 30535 03/31/23 BACTERIOLOGICAL TESTING (3/25/23)520.00
30536 03/31/23 BACTERIOLOGICAL TESTING (3/29/23)228.00
2059603 04/05/23 18331 CORE & MAIN LP S448120 INVENTORY03/24/23 -797.62
S272835 03/24/23 INVENTORY 6,933.72
2059670 04/19/23 18331 CORE & MAIN LP R467026 03/23/23 INVENTORY (VALVE REPLACEMENTS)53,546.37 53,546.37
2059671 04/19/23 15049 CORELOGIC SOLUTIONS LLC 82169266 03/31/23 DATA SERVICES 540.75 540.75
2059636 04/12/23 02612 COUNCIL OF WATER UTILITIES 04182023 04/04/23 BUSINESS MEETING 110.00 110.00
2059637 04/12/23 00184 COUNTY OF SAN DIEGO 5731021423 02/14/23 UPFP PERMIT RENEWAL (4/30/23-4/30/24)1,010.00
2818021423 02/14/23 UPFP PERMIT RENEWAL (4/30/23-4/30/24)633.00
2059672 04/19/23 00099 COUNTY OF SAN DIEGO DPWAR0223 03/16/23 EXCAVATION PERMITS (FEB 2023)2,671.46 2,671.46
2059673 04/19/23 00184 COUNTY OF SAN DIEGO 193E602130323 04/04/23 SHUT DOWN TEST (3/29/23)1,264.00
193E638040323 04/04/23 DEVELOPER INSPECTION (3/6/23)474.00
193E632920323 04/04/23 DEVELOPER INSPECTION (3/7/23-3/10/23)342.90
193E638030323 04/04/23 DEVELOPER INSPECTION (3/3/23)316.00
193E633650323 04/04/23 SHUT DOWN TEST (3/27/23)158.00
193E638120323 04/04/23 SHUT DOWN TEST (3/1/23)158.00
193E638130323 04/04/23 SHUT DOWN TEST (3/1/23)158.00
193E638100323 04/04/23 DEVELOPER INSPECTION (2/28/23-3/1/23)158.00
193E633810323 04/04/23 DEVELOPER INSPECTION (3/16/23)79.00
2059674 04/19/23 11797 D&H WATER SYSTEMS INC 2023-0464 04/03/23 ANALYZER PARTS 4,928.87 4,928.87
2059577 03/29/23 21798 DONALD WHALEY Ref002689838 03/27/23 UB Refund Cst #0000281958 100.00 100.00
2059604 04/05/23 02447 EDCO DISPOSAL CORPORATION 5458 033123 03/31/23 RECYCLED WASTE SERVICE FY23 243.31 243.31
2059605 04/05/23 20794 ENTISYS 360 193494 03/17/23 MS SOFTWARE MAINTENANCE RENEWAL 3,074.37 3,074.37
2059606 04/05/23 20511 EYEMED (FIDELITY)165696100 03/20/23 VISION BENEFITS ADMINISTRATION (CY2023)1,352.05
165696113 03/20/23 VISION BENEFITS ADMINISTRATION (CY2023)70.42
2059578 03/29/23 21797 FELICIA CASTRO HUERTA Ref002689837 03/27/23 UB Refund Cst #0000276841 67.15 67.15
Page 2 of 8
11,471.39
2,236.94
1,739.12
4,649.75
12,155.00
18,930.00
2059587 03/29/23 03546 FERGUSON WATERWORKS # 1083 0822924 03/07/23 INVENTORY 3,620.40 3,620.40
2059675 04/19/23 03546 FERGUSON WATERWORKS # 1083 0823428 03/23/23 PS REPAIR KITS 3,317.00
0816696-1 03/22/23 INVENTORY 3,017.00
0823177 04/03/23 CLA-VAL PARTS 2,591.26
0819274 03/27/23 INVENTORY 2,546.13
2059676 04/19/23 17888 FIRST AMERICAN DATA TREE LLC 9003400323 03/31/23 DOCUMENT SERVICE (MONTHLY)99.00 99.00
2059677 04/19/23 11962 FLEETWASH INC 2796417 03/24/23 FLEETWASH SERVICES FY23 301.49 301.49
2059588 03/29/23 21053 FRANCHISE TAX BOARD Ben2689858 03/30/23 BI WEEKLY PAYROLL DEDUCTION 100.00 100.00
2059638 04/12/23 21053 FRANCHISE TAX BOARD Ben2693462 04/13/23 BI WEEKLY PAYROLL DEDUCTION 51.31 51.31
2059639 04/12/23 21804 GABRIEL KASRAWI Ref002689945 04/10/23 UB Refund Cst #0000253211 43.50 43.50
2059678 04/19/23 00174 HACH COMPANY 13526112 04/04/23 HACH CHEMKEY REAGENTS FY23 1,187.26
13522840 03/31/23 HACH CHEMKEY REAGENTS FY23 1,049.68
2059679 04/19/23 03668 HARRELL & COMPANY ADVISORS LLC 040323 04/04/23 PREP & FILING OF DISCLOSURE ANNUAL RPTS 1,750.00 1,750.00
2059607 04/05/23 19978 HASA INC.874690 03/09/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,280.33
874691 03/09/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 256.07
875581 03/15/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 202.72
2059680 04/19/23 19978 HASA INC.877944 03/30/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,935.44
877946 03/30/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 1,715.65
877675 03/29/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 416.11
877945 03/30/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 390.50
876538 03/22/23 AS-NEEDED SODIUM HYPOCHLORITE FY23 192.05
2059681 04/19/23 00150 HAWTHORNE MACHINERY CO S3241401 03/28/23 CATERPILLAR MINI EXCAVATOR 103,245.13 103,245.13
2059608 04/05/23 18436 HAZEN AND SAWYER DPC 2009405A3 03/16/23 ASSET MANAGEMENT SVCS (12/1/22-2/28/23)7,610.00
200940076A 03/16/23 WATER FACILITIES MASTER PLAN (FEB 2023)4,545.00
2059682 04/19/23 18436 HAZEN AND SAWYER DPC 2009400616 03/31/23 WATER FACILITIES MASTER PLAN (FEB 2023)7,150.00 7,150.00
2059609 04/05/23 00062 HELIX WATER DISTRICT 2866 03/20/23 CUST WATER CONSUMPTION DATA 1,187.28 1,187.28
2059683 04/19/23 16120 HMT LLC 23265657 03/28/23 PRESSURE VESSEL INSPECTIONS & CLEANING 9,465.00
23265632 03/22/23 PRESSURE VESSEL INSPECTIONS & CLEANING 9,465.00
2059610 04/05/23 20950 HOCH CONSULTING APC 20230027 03/08/23 GRANT WRITING (1/2/2023-2/28/23)4,085.00 4,085.00
Page 3 of 8
22,437.39
17,863.99
34,678.72
2059640 04/12/23 21803 HOMEFED CORPORATION Ref002689944 04/10/23 UB Refund Cst #0000251542 384.51 384.51
2059579 03/29/23 21786 HORST SOLLFRANK Ref002689826 03/27/23 UB Refund Cst #0000147669 90.44 90.44
2059589 03/29/23 21322 HPS WEST INC.0001586 03/06/23 XTR AND ALLEGRO TRANSPONDERS 6,969.49 6,969.49
2059611 04/05/23 06511 HUDSON SAFE-T-LITE RENTALS 00120598 11/09/22 TRAFFIC CONTROL EQUIPMENT RENTAL 2,000.35 2,000.35
2059684 04/19/23 06511 HUDSON SAFE-T-LITE RENTALS 00115349 08/17/22 REPLACEMENT SIGNS 315.01 315.01
2059612 04/05/23 13349 HUNSAKER & ASSOCIATES 202302001 03/20/23 LAND SURVEYING SERVICES (FEB 2023)8,339.00 8,339.00
2059685 04/19/23 08969 INFOSEND INC 233082 03/31/23 BILL PROCESSING SERVICES FY23 14,504.04
233081 03/31/23 BILL PROCESSING SERVICES FY23 4,816.23
233598 04/03/23 BILL PROCESSING SERVICES FY23 2,793.17
233651 04/04/23 BILL PROCESSING SERVICES FY23 323.95
2059686 04/19/23 15368 INTEGRITY MUNICIPAL SYSTEMS 12032 03/30/23 TREATMENT PLANT SCRUBBER SERV/REPAIR 45,800.00 45,800.00
2059641 04/12/23 21802 IULIIA VALOVA Ref002689943 04/10/23 UB Refund Cst #0000233348 67.59 67.59
2059642 04/12/23 20752 IWG TOWERS ASSETS II LLC 410527682 04/01/23 ANTENNA SUBLEASE FY23 2,136.00 2,136.00
2059590 03/29/23 21785 JAMES JONES JJ032723 03/27/23 EXP REIMBURSEMENT - CLAIM 596.26 596.26
2059687 04/19/23 21823 JAMES PENNER SWR22003 04/17/23 REFUND 1,988.55 1,988.55
2059688 04/19/23 20835 KENNY CONSULTING SERV INC KCS0724392 04/03/23 IN-PLANT INSPECTION SERVICES (MAR 2023)4,816.00 4,816.00
2059643 04/12/23 21738 KILLINGSWORTH GEAR INC 16190 03/14/23 REPAIR RIGHT ANGLE DRIVE 13,141.72 13,141.72
2059613 04/05/23 05840 KIRK PAVING INC 22-115-19 03/15/23 AS-NEEDED PAVING SERVICES FY23 15,607.55
22-115-20 03/16/23 AS-NEEDED PAVING SERVICES FY23 2,256.44
2059644 04/12/23 05840 KIRK PAVING INC 22-115-17 03/06/23 AS-NEEDED PAVING SERVICES FY23 17,778.30
22-115-18 03/08/23 AS-NEEDED PAVING SERVICES FY23 15,676.42
22-115-18R 03/08/23 RETAINAGE RELEASE 825.08
22-172-8R 02/23/23 RETAINAGE RELEASE 398.92
2059645 04/12/23 21806 KRISTOPHER JONES 1450041023 04/10/23 CUSTOMER REFUND 365.17 365.17
2059646 04/12/23 21801 LENNAR HOMES OF CA INC Ref002689942 04/10/23 UB Refund Cst #0000215503 1,740.69 1,740.69
2059647 04/12/23 21524 LINDSAY POLIC CONSULTING INC 4002 03/29/23 CONSULTING SERVICES FY2023 1,500.00 1,500.00
2059591 03/29/23 17969 LONDON MOEDER ADVISORS 2210 03/20/23 ECONOMIC OUTLOOK STUDY FY23-29 11,250.00 11,250.00
2059580 03/29/23 21794 LUAY TAZOO Ref002689834 03/27/23 UB Refund Cst #0000276297 25.65 25.65
2059592 03/29/23 21792 LUSARDI CONSTRUCTION Ref002689832 03/27/23 UB Refund Cst #0000274123 1,013.75 1,013.75
2059614 04/05/23 18905 M RAE ENGINEERING INC 202282023 03/20/23 RW PIPELINE CATHODIC IMPROVE (FEB 2023)192,546.00 192,546.00
Page 4 of 8
13,897.89
14,967.01
2059689 04/19/23 18905 M RAE ENGINEERING INC 303312023 04/04/23 RW PIPELINE CATHODIC IMPROVE (MAR 2023)147,497.00 147,497.00
2059648 04/12/23 07591 MA, DONGXING 032723 03/27/23 EXPENSE REIMBURSEMENT 973.00 973.00
2059581 03/29/23 21748 MARGARITA ESCOLAR Ref002689825 03/27/23 UB Refund Cst #0000031022 300.00 300.00
2059690 04/19/23 03745 MEDEROS, CHARLES CM041723 04/17/23 TUITION REIMBURSEMENT 206.25 206.25
2059615 04/05/23 21723 MERINO LANDSCAPE INC 2 03/28/23 ADMINISTRATION LANDSCAPE UPDATE 59,850.00 59,850.00
2059616 04/05/23 01824 MERKEL & ASSOCIATES INC 23031701 03/17/23 SMA HABITAT MANAGEMENT (FEB 2023)10,336.27 10,336.27
2059691 04/19/23 19824 MURRAYSMITH INC N213201CA0018 04/03/23 PLAN CHECK SERVICES (FEB 2023)11,006.50 11,006.50
2059649 04/12/23 21805 MYRNA SANCHEZ Ref002689946 04/10/23 UB Refund Cst #0000260107 124.89 124.89
2059582 03/29/23 21793 NARCISO CABUHAT Ref002689833 03/27/23 UB Refund Cst #0000276264 100.00 100.00
2059692 04/19/23 17261 NATURESCAPE SERVICES 6786 03/31/23 LANDSCAPE MAINTENANCE SERVICES FY23 9,789.00 9,789.00
2059617 04/05/23 00761 NINYO & MOORE GEOTECHNICAL 271481 03/13/23 GEOTECHNICAL SERVICES (FEB 2023)3,947.33 3,947.33
2059583 03/29/23 21799 NISHIGUCHI SHIRO Ref002689839 03/27/23 UB Refund Cst #0000283324 92.56 92.56
2059650 04/12/23 21800 NITA FRANCISCO Ref002689941 04/10/23 UB Refund Cst #0000048650 82.43 82.43
2059618 04/05/23 01002 PACIFIC PIPELINE SUPPLY INC S100449446.001 03/15/23 GATE VALVE & FCA FOR CIP P2614 PROJECT 8,882.71
S100449400.001 03/08/23 INVENTORY 2,404.98
S100442735.005 03/17/23 INVENTORY 1,290.74
S100449650.001 03/15/23 INVENTORY 798.43
S100445274.004 03/15/23 INVENTORY 521.03
2059693 04/19/23 01002 PACIFIC PIPELINE SUPPLY INC S100449849.001 03/22/23 INVENTORY 4,251.97
S100449401.001 03/30/23 INVENTORY 4,008.30
S100449401.002 03/30/23 INVENTORY 2,805.81
S100450054.001 03/30/23 INVENTORY 1,874.14
S100447464.001 03/30/23 INVENTORY 1,778.96
S100449990.001 03/30/23 INVENTORY 247.83
2059619 04/05/23 19310 PALM LAUNDRY INC 262 04/01/23 TOWEL LAUNDRY SERVICE FY23 402.64 402.64
2059694 04/19/23 06419 PLANT SOUP INC 1416 02/26/23 OUTSIDE SERVICES - PROFESSIONAL WRITING 1,190.00 1,190.00
2059695 04/19/23 16029 POTABLE DIVERS INC 23031 03/29/23 FLOATING COVER RES DIVER INSPECTIONS 5,250.00 5,250.00
2059651 04/12/23 21580 PRISM 23401110 04/03/23 EMPLOYEE ASSISTANCE PROGRAM (CY2023)786.03 786.03
2059696 04/19/23 03613 PSOMAS 194455 03/28/23 LAND SURVEYING SERVICES (FEB 2023)3,075.00 3,075.00
2059620 04/05/23 16806 QWIKPRINTS LLC 23321146 02/01/23 FINGERPRINTING SERVICES 25.00 25.00
2059621 04/05/23 20861 RAFTELIS 27491 03/21/23 WATER & SEWER COST OF SERVICE STUDIES 2,500.00 2,500.00
Page 5 of 8
19,200.00
273.17
65,447.56
146,299.98
91,931.92
2059652 04/12/23 14776 RALPH ANDERSEN & ASSOCIATES 04170 03/14/23 COMPENSATION & BENEFITS STUDY 12,400.00
04202 03/14/23 COMPENSATION & BENEFITS STUDY 6,800.00
2059697 04/19/23 19836 RED WING BUSINESS ADV ACCOUNT 2.02304E+12 04/10/23 AS-NEEDED SAFETY BOOTS FY23 250.00 250.00
2059622 04/05/23 15857 REPUBLIC SERVICES 4530-000033107 03/15/23 DISPOSAL SERVICES 486.73 486.73
2059698 04/19/23 00521 RICK POST WELD & WET TAPPING 13401 03/29/23 WELDING FOR 980-2 PS GASKET PROJECT 1,472.50 1,472.50
2059623 04/05/23 07412 RITE AID CORPORATION 98114-112522-1 11/25/22 ONSITE FLU CLINIC 1,019.95 1,019.95
2059699 04/19/23 04542 ROBAK, MARK 30123033123 03/31/23 EXPENSE REIMBURSEMENT 173.61
030123033123 03/31/23 MILEAGE REIMBURSEMENT 99.56
2059700 04/19/23 21706 ROOIBAARD GROUP LLC RB-02175 04/14/23 STRAT PLAN SFTWRE APPLICATION 3,750.00 3,750.00
2059653 04/12/23 19377 SAGEVIEW ADVISORY GROUP LLC 2023-10679 04/01/23 INVESTMENT ADV FOR DEFERRED COMP PLAN 6,250.00 6,250.00
2059701 04/19/23 02586 SAN DIEGO COUNTY ASSESSOR 202300269 04/06/23 MONTHLY ASSESSOR DATA FY23 125.00 125.00
2059624 04/05/23 00003 SAN DIEGO COUNTY WATER AUTH 2458 03/13/23 SOCAL WATERSMART HEW HET WBIC FY23 265.00 265.00
2059593 03/29/23 00121 SAN DIEGO GAS & ELECTRIC 032323 03/23/23 UTILITY EXPENSES (MONTHLY)65,355.25
032023 03/20/23 UTILITY EXPENSES (MONTHLY)92.31
2059625 04/05/23 00121 SAN DIEGO GAS & ELECTRIC 033123 03/31/23 UTILITY EXPENSES (MONTHLY)86,753.41
032923 03/29/23 UTILITY EXPENSES (MONTHLY)58,495.18
032823 03/28/23 UTILITY EXPENSES (MONTHLY)850.66
033123A 03/31/23 UTILITY EXPENSES (MONTHLY)200.73
2059654 04/12/23 00121 SAN DIEGO GAS & ELECTRIC 040523 04/05/23 UTILITY EXPENSES (MONTHLY)90,532.35
040623 04/06/23 UTILITY EXPENSES (MONTHLY)1,399.57
2059702 04/19/23 00121 SAN DIEGO GAS & ELECTRIC 041123 04/11/23 UTILITY EXPENSES (MONTHLY)1,111.77 1,111.77
2059626 04/05/23 13418 SAN DIEGO POWDER COATING 75230 03/10/23 42-INCH SPOOL 2,266.67 2,266.67
2059584 03/29/23 21795 SAVONA LOVELAND Ref002689835 03/27/23 UB Refund Cst #0000276328 33.27 33.27
2059627 04/05/23 05512 SD COUNTY VECTOR CONTROL PROG SD100372223 01/05/23 OTHER AGENCY FEES 688.46 688.46
2059655 04/12/23 19603 SECURITAS SECURITY SVC USA INC 11231293 04/04/23 ON-DEMAND SECURITY RESPONSE FY23 410.00 410.00
2059703 04/19/23 16229 SMITH, TIMOTHY 030123033123 03/31/23 MILEAGE REIMBURSEMENT 60.26 60.26
2059594 03/29/23 21115 SONIA RIVAS Ben2689856 03/30/23 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85
2059656 04/12/23 21115 SONIA RIVAS Ben2693460 04/13/23 BI-WEEKLY PAYROLL DEDUCTION 553.85 553.85
Page 6 of 8
25,206.18
1,186.07
5,940.00
2,597.38
600.00
2059704 04/19/23 16922 SOUTH BAY FOUNDRY INC 0227326 03/29/23 MANHOLE RING AND COVERS 5,333.63 5,333.63
2059705 04/19/23 01460 STATE WATER RESOURCES SW-0266984 04/05/23 ANNUAL PERMIT FEE (4/1/23 - 3/31/24)1,738.00 1,738.00
2059628 04/05/23 15974 SUN LIFE FINANCIAL 38166030123 03/01/23 LIFE & STD/LTD INSURANCE (CY2023)11,438.81 11,438.81
2059706 04/19/23 10339 SUPREME OIL COMPANY 424916 04/05/23 UNLEADED & DIESEL FUEL 15,178.72
424953 04/05/23 UNLEADED & DIESEL FUEL 10,027.46
2059657 04/12/23 18376 SVPR COMMUNICATIONS LLC 1596 03/31/23 COMMUNICATIONS CONSULT SVCS FY23 400.00 400.00
2059629 04/05/23 21394 TEEDEEUAS LLC OTAY 05 04/01/23 UAS PROGRAM SERVICES 4,649.46 4,649.46
2059707 04/19/23 18027 TORQUE TOOLS CALIFORNIA 23026 03/29/23 GASKET REPLACEMENT PROJECT 2,695.79 2,695.79
2059708 04/19/23 00427 UNDERGROUND SERVICE ALERT 320230515 04/01/23 UNDERGROUND ALERTS (MONTHLY)946.25
222303473 04/01/23 DIG SAFE BOARD FEES (MONTHLY)239.82
2059709 04/19/23 18517 UTILITY SERVICES ASSOC LLC 126583 04/03/23 LEAK DETECTION SERVICES FY23 18,338.25 18,338.25
2059630 04/05/23 08028 VALLEY CONSTRUCTION MANAGEMENT SD222202 03/08/23 CMIS (9/1/22-2/28/23)3,135.00
SD9237707 03/08/23 CMIS (2/1/23-2/28/23)2,805.00
2059658 04/12/23 21757 VILLAGE OF ESCAYA APTS LLC Ref002689947 04/10/23 UB Refund Cst #0000276556 368.34 368.34
2059631 04/05/23 20909 VOLT WORKFORCE SOLUTIONS 45803407 03/30/23 WATER INTERNS (D CAMPOS 2/27-3/12)869.88
45777109 02/19/23 WATER INTERNS (D CAMPOS 2/13-2/19)434.88
45790404A 02/26/23 WATER INTERNS (D CAMPOS 2/20-2/26)434.88
45799138A 03/06/23 WATER INTERNS (D CAMPOS 2/6-2/12)434.88
45829399 03/19/23 WATER INTERNS (D CAMPOS 3/13-3/19)422.86
2059659 04/12/23 20909 VOLT WORKFORCE SOLUTIONS 45841322 03/26/23 WATER INTERNS (D CAMPOS 3/20-3/26)434.94 434.94
2059595 03/29/23 15807 WATCHLIGHT CORPORATION 798326 04/15/23 SECURITY ALARM MONITORING FY23 2,576.92 2,576.92
2059710 04/19/23 14879 WATER CONSERVATION GARDEN JPA 9557 04/01/23 GARDEN FUNDING CONTRIBUTION 16,000.00 16,000.00
2059711 04/19/23 15726 WATER SYSTEMS CONSULTING INC 7784 03/31/23 HYDRAULIC MODELING (MAR 2023)4,971.25 4,971.25
2059632 04/05/23 01343 WE GOT YA PEST CONTROL INC 61900 03/08/23 AS-NEEDED BEE REMOVAL FY23 125.00
061912 03/10/23 AS-NEEDED BEE REMOVAL FY23 125.00
61921 03/14/23 AS-NEEDED BEE REMOVAL FY23 125.00
61152 02/10/23 AS-NEEDED BEE REMOVAL FY23 125.00
61952 03/22/03 AS-NEEDED BEE REMOVAL FY23 100.00
2059712 04/19/23 01343 WE GOT YA PEST CONTROL INC 61989 03/28/23 AS-NEEDED BEE REMOVAL FY23 125.00 125.00
2059660 04/12/23 20611 WIMMER YAMADA AND CAUGHEY 0011554 03/31/23 ADMIN LANDSCAPE DESIGN REFRESH 2,090.00 2,090.00
Page 7 of 8
2059713 04/19/23 08023 WORKTERRA 0105304 03/27/23 EMPLOYEE BENEFITS FY23 840.00 840.00
2059585 03/29/23 21796 ZAHIR FARHA Ref002689836 03/27/23 UB Refund Cst #0000276590 21.60 21.60
Amount Pd Total:1,872,291.30
Check Grand Total:1,872,291.30142 Checks
Page 8 of 8