ADOPT AGENDA FOR THE REGULAR MEETING OF NOVEMBER 2, 2016 PUBLIC COMMENT

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1 AGENDA FOR A REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE VALLECITOS WATER DISTRICT WEDNESDAY, NOVEMBER 2, 2016, AT 5:00 P.M. AT THE DISTRICT OFFICE 201 VALLECITOS DE ORO, SAN MARCOS, CALIFORNIA CALL TO ORDER PRESIDENT SANNELLA PLEDGE OF ALLEGIANCE ROLL CALL In the case of an emergency, items may be added to the Agenda by a majority vote of the Board of Directors. An emergency is defined as a work stoppage; a crippling disaster; or other activity which severely imperils public health, safety, or both. Also, items which arise after the posting of the Agenda may be added by a two-thirds vote of the Board of Directors. ADOPT AGENDA FOR THE REGULAR MEETING OF NOVEMBER 2, 2016 PUBLIC COMMENT Persons wishing to address a matter not on the Agenda may be heard at this time; however, no action will be taken until the matter is placed on a future agenda in accordance with Board policy. Public comments are limited to three minutes. A Request to Speak form is required to be submitted to the Executive Secretary prior to the start of the meeting, if possible. Public comment should start by stating name, address and topic. The Board is not permitted during this time to enter into a dialogue with the speaker. NOTICE TO THE PUBLIC All matters listed under the Consent Calendar will be voted upon by one motion. There will be no separate discussion of these items, unless a Board member or member of the public requests that a particular item(s) be removed from the Consent Calendar, in which case it will be considered separately under Action Items. 1.1 APPROVAL OF MINUTES (pp. 4-13) CONSENT CALENDAR A. SPECIAL BOARD MEETING OCTOBER 12, 2016 B. REGULAR BOARD MEETING OCTOBER 19, 2016 Approved minutes become a permanent public record of the District. Recommendation: Approve Minutes 1.2 WARRANT LIST THROUGH NOVEMBER 2, 2016 $2,297, (pp ) Recommendation: Approve Warrant List

2 Agenda for a Regular Meeting of the Board of Directors November 2, 2016 Page FINANCIAL REPORT (pp. 18) A. QUARTERLY FINANCIAL REPORT SEPTEMBER 30, APPROVAL OF CONSTRUCTION AGREEMENT FOR WOODWARD SENIOR HOUSING APN (COASTAL ACTIVE LIVING, LLC) (pp ) Recommendation: Approve construction agreement 1.5 APPROVAL OF CONSTRUCTION AGREEMENT FOR QUARRY ROAD NURSERY APN (THIRDSIES, LLC C/O OTAY REAL ESTATE COMPANY) (pp ) Recommendation: Approve construction agreement 1.6 APPROVAL OF CONSTRUCTION AGREEMENT FOR SAN ELIJO HILLS, PHASE V, P.A. O, UNIT 7 APN (SAN ELIJO HILLS DEVELOPMENT COMPANY, LLC) (pp ) Recommendation: Approve construction agreement *****END OF CONSENT CALENDAR***** *****END OF ACTION ITEMS***** 2.1 INTERIM GENERAL MANAGER 2.2 DISTRICT LEGAL COUNSEL ACTION ITEMS REPORTS 2.3 SAN DIEGO COUNTY WATER AUTHORITY 2.4 ENCINA WASTEWATER AUTHORITY - Capital Improvement Committee - Policy and Finance Committee 2.5 DIRECTORS REPORTS ON MEETINGS/CONFERENCES/SEMINARS ATTENDED *****END OF REPORTS*****

3 Agenda for a Regular Meeting of the Board of Directors November 2, 2016 Page 3 OTHER BUSINESS 3.1 QUARTERLY BOARD EXPENSES (pp ) For information only. Recommendation: No action required 3.2 SDNEDC NORTH COUNTY ANNUAL BUSINESS BREAKFAST December 7, 2016 California Center for the Arts, Escondido, CA *****END OF OTHER BUSINESS***** 4.1 DIRECTORS COMMENTS/FUTURE AGENDA ITEMS *****END OF DIRECTORS COMMENTS/FUTURE AGENDA ITEMS***** CLOSED SESSION 5.1 CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION (a) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (ONE CASE) Golden Door v. Vallecitos Water District et. al. San Diego Superior Court North County Division Case No CU-WM-NC *****END OF CLOSED SESSION***** 6.1 ADJOURNMENT *****END OF AGENDA***** If you have any disability which would require accommodation in order to enable you to participate in this meeting, please call the Executive Secretary at ext. 264 at least 48 hours prior to the meeting. Audio and video recordings of all Board meetings are available to the public at the District website AFFIDAVIT OF POSTING I, Diane Posvar, Executive Secretary of the Vallecitos Water District, hereby certify that I caused the posting of this Agenda in the outside display case at the District office, 201 Vallecitos de Oro, San Marcos, California by 3:00 p.m., Friday, October 28, Diane Posvar

4 MINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE VALLECITOS WATER DISTRICT WEDNESDAY, OCTOBER 12, 2016, AT 5:00 PM AT THE DISTRICT OFFICE, 201 VALLECITOS DE ORO, SAN MARCOS, CALIFORNIA President Sannella called the Special meeting to order at the hour of 5:00 p.m. Director Elitharp led the pledge of allegiance. Present: Staff Present: Director Elitharp Director Evans Director Hernandez Director Martin Director Sannella Interim General Manager Scaglione Legal Counsel Scott Administrative Secretary Johnson ADOPT AGENDA FOR THE SPECIAL MEETING OF OCTOBER 12, MOTION WAS MADE by Director Martin, seconded by Director Elitharp, and carried unanimously, to adopt the agenda for the Special Board Meeting of October 12, PUBLIC COMMENT None. ACTION ITEM CALIFORNIA SPECIAL DISTRICTS ASSOCATION (CSDA) SAN DIEGO CHAPTER CALL FOR NOMINATIONS Interim General Manager Scaglione stated the CSDA San Diego Chapter Nominating Committee is seeking candidates willing to lead the Chapter over the next two years. The candidate s district must be a member of the California Special Districts Association and a member of the San Diego Chapter. The positions to be filled are President, 1 st Vice President, 2 nd Vice President and Treasurer. Nomination forms are due by October 15, General discussion took place. The Board took no action. 4 Item 1.1

5 Minutes of the Vallecitos Water District Special Meeting October 12, 2016 Page 2 CLOSED SESSION PERSONNEL MATTERS PURSUANT TO GOVERNMENT CODE SECTION 54957(b) TO CONSIDER APPOINTMENT OR EMPLOYMENT OF A PUBLIC EMPLOYEE MOTION WAS MADE by Director Martin, seconded by Director Hernandez, and carried unanimously, to move into Closed Session. REPORT AFTER CLOSED SESSION The Board reconvened to open session at the hour of 6:05 p.m. The Board, in Closed Session, directed counsel to take appropriate action concerning the recruitment of a new General Manager. ADJOURNMENT There being no further business to discuss, President Sannella adjourned the Special Meeting of the Board of Directors at the hour of 6:06 p.m. A Regular Meeting of the Vallecitos Water District Board of Directors has been scheduled for Wednesday, October 19, 2016, at 5:00 p.m. at the District office, 201 Vallecitos de Oro, San Marcos, California. Michael A. Sannella, President Board of Directors Vallecitos Water District ATTEST: Tom Scaglione, Secretary Vallecitos Water District 5 Item 1.1

6 MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE VALLECITOS WATER DISTRICT WEDNESDAY, OCTOBER 19, 2016, AT 5:00 PM AT THE DISTRICT OFFICE, 201 VALLECITOS DE ORO, SAN MARCOS, CALIFORNIA President Sannella called the Regular meeting to order at the hour of 5:00 p.m. Director Hernandez led the pledge of allegiance. Present: Staff Present: Director Elitharp Director Evans Director Hernandez Director Martin Director Sannella Interim General Manager Scaglione Legal Counsel Scott Administrative Services Manager Emmanuel District Engineer Gumpel Finance Manager Fusco Operations & Maintenance Manager Pedrazzi Development Services Senior Engineer Scholl Public Information/Conservation Supervisor Robbins Accounting Supervisor Owen Financial Analyst Arthur Water Systems Operations Supervisor Askine Water Systems Operator II Reiber Executive Secretary Posvar ADOPT AGENDA FOR THE REGULAR MEETING OF OCTOBER 19, MOTION WAS MADE by Director Martin, seconded by Director Elitharp, and carried unanimously, to adopt the agenda for the Regular Board Meeting of October 19, 2016, with agenda item 2.2 being moved to Closed Session. PRESENTATIONS Water Operations Department Presentation Shawn Askine, Water Systems Operations Supervisor, introduced staff Cheryl Reiber, Richie Arballo, Brandon Coleman, Joey Shore, and Toby Luna. Cheryl Reiber, Water Systems Operator, facilitated the Water Operations department presentation as follows: Water Systems Operations Responsibilities Distribution System Water Quality Supervisory Control and Data Acquisition (SCADA) Water Purchasing Tanks Facilities 6 Item 1.1

7 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 2 Pump Station Facilities Pressure Station Facilities Regulatory Sampling Reporting Certification General question and answer took place during the presentation. The presentation was for information only. President Sannella introduced Glenn Pruim who was recently selected to be the next Vallecitos Water District General Manager. Mr. Pruim addressed the Board thanking them for the opportunity. He stated he is very excited about moving forward and becoming a part of the Vallecitos Water District. He has had the opportunity to work side by side with the District for quite some time. When he was with Carlsbad, they worked collectively on the desalination project that has now been built; worked with Vallecitos on recycled water projects; represented Carlsbad and currently represents Encinitas at the Encina Wastewater Authority, so he gets the opportunity to work side by side with Vallecitos on a shared investment at Encina Wastewater Authority. He further stated that Vallecitos is a very well respected organization and he is proud to be selected as the General Manager. He wants to build on that reputation of the District and take the District forward in its mission. In addition to having worked side by side with Vallecitos, for the last fourteen years he has been a resident of San Marcos and a very satisfied Vallecitos Water District customer. He recently had an encounter with Customer Service when he had a water main break in his neighborhood and is glad to say the crews responded very quickly and got everything up and running very promptly and very professionally. It was a really good experience. He thanked the Board for the opportunity and looks forward to working with all. PUBLIC COMMENT Mike Hunsaker, member of the public, addressed the Board indicating that much of the piping in the Twin Oaks area is old and contains a lot of copper and possibly lead. He inquired if any surveys have been conducted to determine if any of the buildings are at risk of lead and copper contamination. He commented on the implementation and impact of SB 814. He congratulated the Board on the selection of a new General Manager and offered best wishes to the new General Manager in filling big shoes with the same competency that Mr. Lamb exhibited. He thanked the Board. Operations & Maintenance Manager Pedrazzi addressed Mr. Hunsaker s comments on the risk of lead and copper contamination stating that lead and copper rule is a Federal regulation. It does require the District to sample homes built prior to 1983 and have the danger of having lead solder used. The District does not have any lead service lines in the District. The State Water Resources Control Board Department of Drinking 7 Item 1.1

8 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 3 Water works with the District in selecting homes to be inspected. The District asks the homeowners to participate by providing them with bottles to sample their water inside the home. The District then tests the water. CONSENT CALENDAR MOTION WAS MADE by Director Hernandez, seconded by Director Martin, and carried unanimously, to approve the Consent Calendar with item 1.6 pulled for separate discussion. 1.1 Approval of Minutes A. Special Board Meeting October 3, 2016 B. Regular Board Meeting October 5, Warrant List through October 19, $3,514, Financial Reports A. Water Meter Count September 30, 2016 B. Water Production/Sales Report 2016/2017 C. Water Revenue and Expense Report September 30, 2016 D. Sewer Revenue and Expense Report September 30, 2016 E. Reserve Funds Activity September 30, 2016 F. Investment Report September 30, Operations & Maintenance Metrics Quarterly Report September 30, Final Acceptance of Water and Sewer Improvements for Rogers Court, TM 5337, APN: , 55 & 56 (New Point Investment Group, LLG) 1.6 Drought Update Mr. Hunsaker addressed the Board regarding his metered use and inquired as to how he can have access to read data. He thanked the Board. President Sannella asked Interim General Manager Scaglione to have staff contact Mr. Hunsaker. General discussion followed MOTION WAS MADE by Director Martin, seconded by Director Hernandez, and carried unanimously, to approve Item 1.6. ACTION ITEMS CONSIDERATION OF GENERAL MANAGER EMPLOYMENT AGREEMENT GLENN PRUIM 8 Item 1.1

9 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 4 Legal Counsel Scott addressed the Board presenting the employment agreement with Mr. Pruim for General Manager. The agreement reflects the terms and conditions the Board requested MOTION WAS MADE by Director Elitharp, seconded by Director Martin, and carried unanimously, to approve the agreement. REQUEST FOR DETACHMENT OF APN: FROM THE VALLECITOS WATER DISTRICT (ROOS HALLER) Development Services Senior Engineer Scholl stated that Carole Ann Roos Haller, owner of the property, is requesting to detach 0.48 acres from the District and annex this portion into Vista Irrigation District (VID). The majority of this parcel (0.70 acres) is already within VID s water service area. VID has existing water facilities in Camino de las Lomas that can provide adequate water service to this parcel. Vallecitos does not have any water facilities in the area to serve this property which is also outside the Sewer Improvement District for sewer service. Ms. Roos Haller hopes to develop this land. Staff recommended the Board approve the detachment from the District with the following conditions: 1. Payment of water detachment fee of $1,183 per acre (0.48 acre) = $ Payment of detachment administration fee of $1, (paid). 3. Submittal of a copy of title report (initiated or updated within the last six months) showing ownership. 4. Submittal of a geographic description* of the property including a plat map and a disc or flash drive. 5. Initiation of annexation proceedings with Vista Irrigation District. 6. Completion of the detachment within one year of Board approval. If detachment is not completed within the one year of Board approval, a new request for detachment will be required. General discussion took place MOTION WAS MADE by Director Evans, seconded by Director Hernandez, and carried unanimously, to approve the detachment with conditions. CONSIDERATION OF PER DIEM FOR TOUR OF PADRE DAM S ADVANCED WATER PURIFCATION PROJECT AND SANTEE LAKES Interim General Manager Scaglione stated that this event is not listed in Ordinance 202 as compensable. Board approval is needed in order to receive per diem for this event. 9 Item 1.1

10 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page MOTION WAS MADE by Director Hernandez, seconded by Director Martin, and carried unanimously, to approve per diem for this event. CONSIDERATION OF PER DIEM FOR INDEPENDENT INTERVIEWS OF TWO CANDIDATES FOR GENERAL MANAGER BY DIRECTOR MARTIN Interim General Manager Scaglione stated this event is not listed in Ordinance 202 as compensable. Board approval is needed in order to receive per diem for this event. Director Evans stated she feels very strongly about this for the record would like to read what she feels. First of all according to the Board policy, the Board members who would have appropriately been the ones to do a private interview with the applicant should really have been, I believe, the Board members who are on the Administrative and Personnel Committee, which is Jim Hernandez and I. However, as the Chair, I would not and did not request such an option because interviewing and selecting a General Manager, to me, is the most critical and far reaching decision a Board has to make. And it requires the full participation and mutual input of each and all Board members in an equally shared manner. I believe any and all questions to and answers from the applicant should be heard by all of us at the same time and place, there should not be opportunities for individual Board members to ask questions, glean information or even influence an applicant unduly. I am not saying that happened, that s just my feeling. The second reason is the only Director who pursued a private interview with the applicants did so before the Board s final interview with them. He had no new relevant, revealing or critical insight to share with the Board when he returned. His comment was actually very generic they were all nice, they were all pleasant and I believe either one of them would do a good job. Therefore, to the best of my knowledge, I believe the Board s decision and selection of our General Manager, Glenn Pruim, was made purely in Closed Session through interviews, questions, and conversations attended to and heard by all of us. And though the private interviews may have been reassuring for that Director, they were unnecessary and of no benefit to the Board s ultimate decision. So, to pay a per diem and/or expenses for them which could total over $400+, I feel it s a misuse of ratepayer s money and I cannot support it. Director Martin stated he s been through this process before, he made it abundantly clear to the Board that he wanted to meet with the gentlemen, there were no objections made at that time to be doing so by anyone, so he s assuming hearing no objection, no one has a problem with it. He knows and respects the Director s thoughts and how she thinks about things, he thinks about them differently. It is the most important decision he thinks this Board is going to be making and he suggested that everyone should, if they have the time, to take the opportunity to do that. He did have the time, so took the opportunity to do that. He is not asking for expenses, he is not asking for the breakfast and the mileage, purely the time. One was on a Saturday, which was a work day for him, and the other was on a Monday, which was the holiday work day for him as well. He worked both days and had to restrict his time to do it. He thought it was very worthwhile to do it and he announced to the Board he was doing this ahead of time with no objections. 10 Item 1.1

11 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 6 President Sannella stated he couldn t meet with them, he would have liked to but just didn t have the time to. He did remember and recalled Director Martin being very mindful of, almost checking for consensus from the Board before he did it, and he doesn t remember too much concern by any of the members at that time. He is taken aback by the concern now MOTION WAS MADE by Director Hernandez, seconded by Director Elitharp, with Director Evans voting no and Director Martin abstaining, to approve per diem for the interviews. QUARTERLY INVESTMENT REPORT This item was presented for information only. REPORTS INTERIM GENERAL MANAGER None. DISTRICT LEGAL COUNSEL Legal Counsel Scott shared data with the Board on the amount of money being spent on just the 17 ballot propositions. In total, more than $400 million has been spent between gathering signatures, direct mail, radio, TV, and other media avenues. With three weeks left it is expected this number may go over $500 million. SAN DIEGO COUNTY WATER AUTHORITY Director Evans stated that the Board meeting will be held this Thursday. She further stated that Mark Muir is the new Board of Directors Chairman, Jim Madaffer is the Vice Chair, Gary Croucher is the Secretary and they took office at the last Board meeting. She further stated that the San Vicente Reservoir and the marina are now open; Governor Brown recently signed two Water Authority sponsored bills AB 2515 and AB 33; SDCWA received a top national award from the Association of Metropolitan Water Agencies (AMWA) for its commitment to improving the regions water supply reliability. The AMWA honored the Water Authority with its Sustainable Water Utility Management Award at their national 2016 Executive Management Conference. The Water Authority has now earned all three of AMWA s top utility management awards. ENCINA WASTEWATER AUTHORITY Director Elitharp reported on the Policy and Finance Committee meeting at which they recommended authorization to the Board to advertise a Request for Proposal for financial auditing services. They also reviewed the proposed EWA volunteer program and recommended this to the Board. 11 Item 1.1

12 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 7 Director Hernandez reported on the Capital Improvement Committee meeting at which an update on facility improvements was provided and a recommendation made to the Board to approve a design contract to upgrade the electronic operations and maintenance manuals. DIRECTORS REPORTS ON TRAVEL/CONFERENCES/SEMINARS ATTENDED Directors Evans, Elitharp, Sannella, Martin and Hernandez reported on their attendance to the Council of Water Utilities meeting. Directors Elitharp, Sannella, Martin and Hernandez reported on their attendance to the San Diego North Economic Development Council Investor s meeting. Directors Martin and Hernandez reported on their attendance to the California Special District Association conference. OTHER BUSINESS None. DIRECTORS COMMENTS/FUTURE AGENDA ITEMS None. CLOSED SESSION SAN DIEGO GAS & ELECTRIC RATE CASE UPDATE CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION (a) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (ONE CASE) Citizens Development Corporation, v. County of San Diego, et al. United States District Court, for the Southern District of California Case No. 12CV0334 IEG RB MOTION WAS MADE by Director Martin, seconded by Director Hernandez, and carried unanimously to move into Closed Session pursuant to Government Code Section (a). REPORT OUT OF CLOSED SESSION The Board reconvened to Open Session at the hour of 6:30 p.m. The Board, in Closed Session, heard an update from District Engineer James Gumpel on the SDG&E Rate Case and took no action. The Board also heard an update from Counsel Scott on the Citizens Development Corporation v. the County of San Diego case and took no action. 12 Item 1.1

13 Minutes of the Vallecitos Water District Regular Meeting October 19, 2016 Page 8 ADJOURNMENT There being no further business to discuss, President Sannella adjourned the Regular Meeting of the Board of Directors at the hour of 6:31 p.m. A Regular Meeting of the Vallecitos Water District Board of Directors has been scheduled for Wednesday, November 2, 2016, at 5:00 p.m. at the District office, 201 Vallecitos de Oro, San Marcos, California. Michael A. Sannella, President Board of Directors Vallecitos Water District ATTEST: Tom Scaglione, Secretary Board of Directors Vallecitos Water District 13 Item 1.1

14 VALLECITOS WATER DISTRICT WARRANTS LIST SUMMARY November 2, 2016 Summary November Warrants $ 2,297,575 * YTD Warrants $ 22,271,283 * FY2017 Budget $ 62,827,000 * Excludes Debt Service November 4% 2017 Budget FYTD 35% 2017 Budget $12.00 $10.00 Historical Warrants by Month** $8.00 Millions $6.00 $4.00 $ $- NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV FY 2016 FY 2017 Total Warrants SDCWA & OMWD ** Historical Warrants by Month chart summarizes amounts in the Warrants List for the given month not amounts paid during the month. Invoices Processed Current 12% 217 SAN DIEGO COUNTY WATER AUTH. ENCINA WASTEWATER AUTHORITY PUBLIC EMPLOYEES RETIRE SYSTM ACWA/JOINT POWERS INSURANCE Top 10 Vendors - FYTD $1.1M $1.1M $2.4M $10.1M July 1-to-Oct 26 88% 1,819 SAN DIEGO GAS & ELECTRIC OLIVENHAIN MWD SAN ELIJO HILLS DEVELOPMENT CO BLACK & VEATCH CORPORATION US PEROXIDE, LLC $454K $309K $296K $180K $141K RUSH TRUCK CENTERS OF CA, INC 14 $117K Item 1.2

15 VALLECITOS WATER DISTRICT WARRANTS LIST November 2, 2016 PAYEE DESCRIPTION CHECK# AMOUNT CHECKS Internal Revenue Service Payroll Taxes Quarter Ending , Airgas USA LLC Cylinder Rental J.C. Ehrlich Co Inc Plant Maintenance Sept Arthur A. Brown Plumbing Svc Heater, Pressure Regulator AT&T Phone Svc Sept , Electro Recycle, Inc. E Waste Pick Up & Disposal Bearcom Svc To District Radios Prj Bearcom Svc To District Radios Prj Black & Veatch Corporation Water & Sewer Master Plan Prj , Recycled Water Plan Prj , Boncor Water Systems Soft Water Svc Oct, Osmosis Filter Rental Oct , Bonsall Petroleum Constr Inc Leak Detector Testing & Monitoring Boot World Inc Safety Boots CA Dept of Forestry/Fire Protection Crew Work Aug & Sept , City of San Marcos Right of Way Permits Core Logic Information Solutions Inc Engineering Maps Sept Corodata Media Storage Inc Back Up Storage Tape Sept COSTCO Membership Costco Membership Dec 16 - Dec County of San Diego Recording Fees Sept Craig Elitharp SDNEDC Meeting , COWU Meeting Crop Production Services, Inc. Fertilizer Day Wireless Systems Svc Call Low Band Radios Fleet Dept DirecTV Inc Satellite Svc Oct Dokken Engineering Peroxide Station Prj , Patrick Drummond VMWare User Meeting & MISAC Conference DXP Enterprises, Inc. Influent Pump Parts MRF , Karla Fisher MISAC Conference Fisher Scientific LLC Nitrate Test Strips MRF John Fusco CSDA Conference GSG Printing Inc. Spring Splash Prj , Green Thumb Nursery Landscape Supplies MRF Hach Company Water Quality Supplies, Flo Dar Calibrations 6 MRF , Health Dimensions Health Expo Management HR Idexx Distribution Corp. Sample Vessels , Infosend Inc Support Fee Sept, Postage & Printing Oct , Jason Hubbard ASCE Membership Jeff Katz Locker Room Expansion Prj , Joel Johnson Commercial Drivers License JCI Jones Chemicals Inc Chlorine , KRC Rock Inc Landscape Rock MRF Law Offices Of Jeffrey G Scott Legal Svcs Sept , Lawnmowers Plus Inc Hardware Supplies Lloyd Pest Control Pest Control Sept Mallory Safety & Supply, LLC Safety Supplies, Electrician Glove Testing Manpower Temp Services Customer Service Rep Week Ending & , Matheson Tri-Gas Inc Cylinder Rental Mike Sannella SDNEDC Meeting , COWU Meeting Nolte Associates Inc Public Outreach Prj , Nth Generation Computing, Inc. DatAlert Suite Virus Attack Protection 115 Users , Olivenhain MWD Treated Water Sept , PEMG, Inc. Microsoft Licensing 3 Years , Pitney Bowes Postage Machine Lease Aug - Oct Pitney Bowes Supplies For Postage Machine Air Quality Compliance Solutions, Inc. Operator Svc Oct Rusty Wallis Inc Soft Water Tanks Oct S & J Supply Company, Inc. Brass Inventory SDG&E Power Sept , San Elijo Hills Development Co LLC Water Line Installation Prj , Item 1.2

16 VALLECITOS WATER DISTRICT WARRANTS LIST November 2, 2016 PAYEE DESCRIPTION CHECK# AMOUNT Thomas F Scaglione ACWA/JPIA Conference Smart & Final Office Supplies Southern Counties Lubricants, LLC Oil & Diesel Fuel , Sunbelt Rentals Inc Lift Rental Testamerica Laboratories Inc Water Testing The Light House Light Package Veh 264 Prj , Fire Extinguishers , Underground Service Alert Monthly Dig Alert Sept Univar USA Inc Sodium Bisulfite, Caustic Soda , Universal Protection Service LP Weekly Deposit Svc Sept UPS Shipping Sept & Oct US Peroxide, LLC Trioxyn , VAP Enterprises Inc Right of Way Prj , Verizon Wireless IPad & Cell Phone Service Sept , West Coast Safety Supply, Inc. High Line Trailer Prj , Tri-City Emergency Medical Group Medical Svcs Young Engineering Mfg Inc Surge Tank Replacement Lake San Marcos Lift Station , Ace Coolers Inc Ice Machine Cleaning , Agri Service Inc Mulch Prj Air Pollution Control District Emission Fee Renewals , Aqua-Metric Sales Co Meters , Bay City Electric Works Inc Air & Fuel Filters 13 MRF Coast Equipment Rentals Water Truck Rental County Of San Diego Permit Fee Robert Deyo Safety Station Prj , Diamond Environmental Services Portable Restroom MRF El Camino Rental Concrete Electrical Sales Inc Parking Lot Lights, Lamps , Encina Wastewater Authority Water Testing , Escondido Metal Supply Hardware Supplies Ferguson Enterprises, Inc Water Sampling Station, Couplings, Pressure Regulator Inventory, Gaskets , Ford of Escondido Dump Truck Repairs Veh , Freedom Automation Inc PLC Programming Prj , Grainger Inc Racks For Maintenance Bldg 3 MRF, Cable Ties, Disinfectant, Hardware Supplies , Haaker Equipment Co. Spill Plate Veh Harrington Industrial Hardware Supplies Hawthorne Machinery Co. Water Truck Rental, Steering Parts Veh , Hidden Valley Pump Sys Inc Potable Pump Repair Parts MRF One Source Distributors LLC Hardware Supplies Prj Pacific Pipeline Supply Hardware Supplies Prj Plumbers Depot Inc Camera For CCTV Van Prj , Rick Post Welding Water Line Repair Ray White Cement Vactron Pit Prj , T.S. Industrial Supply Vactron Nozzles 2, Hardware Supplies Talley Communications Hardware Supplies Traffic Supply Inc Traffic Message Board Collections Prj , Unifirst Corporation Uniform Delivery , Valley Chain & Gear Inc Hardware Supplies Visser Construction Inc MRF Restoration Prj , Waxie Sanitary Supply Hardware Supplies Garnishments Payroll Garnishments through Total Disbursements (106 Checks) 925, WIRES Encina Wastewater Authority Quarterly Billing Wire 944, Public Employees Retirement System Retirement Contribution - October 26, 2016 Payroll Wire 65, Total Wires 1,010, Item 1.2

17 VALLECITOS WATER DISTRICT WARRANTS LIST November 2, 2016 PAYEE DESCRIPTION CHECK# AMOUNT PAYROLL Total direct deposits Wire 219, VWD Employee Association Garnishments through , IRS Federal payroll tax deposit Wire 94, Employment Development Department California payroll tax deposit Wire 17, CalPERS Deferred compensation withheld Wire 14, AETNA Deferred compensation withheld Wire 7, Total October 26, 2016 Payroll Disbursements 354, Total direct deposits Wire 3, IRS Federal payroll tax deposits Wire 2, Employment Development Department California payroll tax deposit Wire Special Payroll Disbursements (i.e., final checks, accrual payouts, etc.) 6, Total Payroll Disbursements 361, TOTAL DISBURSEMENTS 2,297, Item 1.2

18 VALLECITOS WATER DISTRICT QUARTERLY FINANCIAL REPORT QUARTER ENDED SEPTEMBER 30, 2016 OVERVIEW With the first quarter complete, the District s water fund has a net operating income of $0.7 million (before depreciation) while the sewer fund has a net operating income of $2.3 million (before depreciation). The District is cash funding capital projects and current on all debt service payments. We anticipated increased water revenues this year when putting the budget together and are monitoring expenses in all funds very closely. WATER FUND The Water Fund performed as expected during the first quarter of Fiscal Year Revenues: Water sales were 30% of total budget as a result of high demand during the summer months. Ready to Serve (RTS) performed as expected. Pumping Charges were lower than expected as no rate increase was adopted and other revenues were slightly higher than the budgeted amount. Revenue Budget YTD Actual Percent Water Sales $ 23,727,000 $ 7,128,967 30% Ready to Serve 12,244,000 3,438,828 28% Pumping Charges 300,000 54,204 18% Other 585, ,789 31% Total $ 36,856,000 $ 10,804,788 29% Expenses: Water Purchases are high in response to Water Sales. Operating and Supporting expenses were slightly lower than budgeted primarily due to lower staffing levels, and overall efficient operation of the system. Expense Budget YTD Actual Percent Water Purchases $ 26,270,000 $ 7,806,096 30% Operating 3,740, ,384 22% Supporting 4,072, ,451 20% General & Admin 2,773, ,783 22% Total $ 36,855,000 $ 10,060,714 27% SEWER FUND The Sewer Fund continues to be stable as revenues received in this fund stem from fixed monthly charges and therefore very predictable. Revenues: Sewer service charges performed as planned and Reclaimed Water Sales are adjusted at the end of each fiscal year to recover actual costs. The Other category is lower than budget due to less than anticipated sewer camera fees and line cleaning to date. SEWER FUND (continued) Revenue Budget YTD Actual Percent Sewer Service $ 17,846,000 $ 4,355,735 24% Reclaimed 1,938, ,500 25% Other 77,000 16,671 22% Total $ 19,861,000 $ 4,856,906 24% Expenses: Treatment expenses are low primarily due to timing of chemical purchases. Operating expenses are lower than expected due to budgeted repairs that have not been performed and lower than anticipated labor. Supporting and General & Administration are low primarily as a result of lower staffing levels. Expense Budget YTD Actual Percent Treatment $ 6,175,000 $ 1,365,987 22% Operating 2,777, ,000 19% Supporting 2,507, ,277 19% General & Admin 1,261, ,859 19% Total $ 12,720,000 $ 2,606,123 20% RESERVES AND FUNDS: The following is a summary of the replacement reserves and capacity funds as of September 30, Water: Revenues Replacement Capacity FY 16/17 Operating Transfers $ 744,074 - Capital Facility Fees - $ 679,281 Property tax & Other 5,891 - Total Revenue 749, ,281 Distributions Capital Projects 356,618 12,844 Net Increase/(Decrease) 393, ,437 Beginning Balance 28,693,077 (10,315,457) Less: Operating Reserves 5,220,500 - Ending Balance $ 23,865,924 $ (9,649,020) Replacement Reserve Floor $ 6,542,500 Replacement Reserve Ceiling $ 26,940,300 Wastewater: Revenues Replacement Capacity FY 16/17 Operating Transfers $ 2,250,783 - Capital Facility Fees - $ 1,540,962 Property tax & Other 68,351 - Total Revenue 2,319,134 1,540,962 Distributions Capital Projects 648, ,982 Debt Service - 217,627 Total Distributions 648, ,609 Net Increase/(Decrease) 1,671,068 1,082,353 Beginning Balance 38,840,390 (6,245,765) Less: Operating Reserves 6,272,900 - Ending Balance $ 34,238,558 $ (5,163,412) Replacement Reserve Floor $ 11,789,400 Replacement Reserve Ceiling $ 41,946, Item 1.3

19 DATE: NOVEMBER 2, 2016 TO: BOARD OF DIRECTORS SUBJECT: APPROVAL OF CONSTRUCTION AGREEMENT FOR WOODWARD SENIOR HOUSING APN (COASTAL ACTIVE LIVING, LLC) BACKGROUND: Coastal Active Living, LLC, owner of the project, has completed the plan check process with the District. This project is a senior residential apartment complex located on the west side of Woodward Street, north of Borden Road. DISCUSSION: A water and sewer study was prepared for this project in February of The modeling results showed that the wastewater flow from the proposed project would result in system deficiencies under peak wet weather flow conditions. To address these deficiencies, this project will replace approximately 708 feet of off-site 8-inch diameter PVC sewer main with 10-inch diameter PVC sewer main. Additionally this project will construct new water and sewer service connections to the site. Upon completion of the water and sewer facilities for this project, water and sewer service will be available to 50 senior apartment homes. All engineering fees and inspection deposits have been paid prior to Board approval of the Construction Agreement. Water and wastewater capital facility fees are due and payable prior to issuance of the final building inspection and/or utility release per Resolution No The owner has submitted standard surety bonds to guarantee completion of the project. The following bond amounts have been reviewed and approved by staff: Labor and Materials $161, Faithful Performance $161, FISCAL IMPACT: None. Future water and sewer revenues will offset costs of service. RECOMMENDATION: Approve the construction agreement for the Woodward Senior Housing water and sewer improvements. 19 Item 1.4

20 q!p!p!p!p!p APPROVAL OF CONSTRUCTION AGREEMENT FOR WOODWARD SENIOR HOUSING ( CJ ASSET ) VINEYARD RD BORDEN RD EXIST. 8" WATER MAIN VINEYARD CT WOODWARD ST WOODWARD SENIOR HOUSING EXIST. 8" SEWER MAIN UPSIZE EXIST. 8" SEWER MAIN TO 10" EXIST. 12" SEWER MAIN N TWIN OAKS VALLEY RD WINDY RD E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO Woodward Senior Housing\Const-Agrmt for Woodward Senior Housing.mxd 20 Item 1.4

21 q!p!p!p!p!p APPROVAL OF CONSTRUCTION AGREEMENT FOR WOODWARD SENIOR HOUSING ( CJ ASSET ) VINEYARD RD BORDEN RD EXIST. 8" WATER MAIN VINEYARD CT WOODWARD ST WOODWARD SENIOR HOUSING EXIST. 8" SEWER MAIN UPSIZE EXIST. 8" SEWER MAIN TO 10" EXIST. 12" SEWER MAIN N TWIN OAKS VALLEY RD WINDY RD E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO Woodward Senior Housing\Const-Agrmt for Woodward Senior Housing.mxd 21 Item 1.4

22 DATE: NOVEMBER 2, 2016 TO: BOARD OF DIRECTORS SUBJECT: APPROVAL OF CONSTRUCTION AGREEMENT FOR QUARRY ROAD NURSERY APN (THIRDSIES, LLC C/O OTAY REAL ESTATE COMPANY) BACKGROUND: Thirdsies, LLC C/O Otay Real Estate Company, owner of the project, has completed the plan check process with the District. The project is located east of Twin Oaks Valley Road, west of Bridle Creek Lane on Quarry Road. DISCUSSION: The project will construct approximately 335 feet of 8-inch diameter PVC water main. Upon completion of the water facilities, water service will be available to Altmans Nursery. All engineering fees and inspection deposits have been paid prior to Board approval of the Construction Agreement. Water and wastewater capital facility fees are due and payable prior to issuance of the final building inspection and/or utility release per Resolution No The owner has submitted standard surety bonds to guarantee completion of the project. The following bond amounts have been reviewed and approved by staff: Labor and Materials $68, Faithful Performance $68, FISCAL IMPACT: None. Future water revenues will offset costs of service. RECOMMENDATION: Approve the construction agreement for Quarry Road Nursery. 22 Item 1.5

23 VALLE PASO APPROVAL OF CONSTRUCTION AGREEMENT FOR QUARRY ROAD NURSERY, APN ( THIRDSIES, LLC C/O OTAY REAL ESTATES CO. ) QUARRY RD EXIST. WATER BRIDLE CREEK LN PROPOSED 8" PVC WATER MAIN QUARRY RD N. TWIN NORTH TWIN OAKS TANK E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO Quarry Road Nursery\Construction Approval.mxd 23 OAKS VALLEY RD Item 1.5 q

24 VALLE PASO APPROVAL OF CONSTRUCTION AGREEMENT FOR QUARRY ROAD NURSERY, APN ( THIRDSIES, LLC C/O OTAY REAL ESTATES CO. ) QUARRY RD EXIST. WATER BRIDLE CREEK LN PROPOSED 8" PVC WATER MAIN QUARRY RD N. TWIN NORTH TWIN OAKS TANK E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO Quarry Road Nursery\Construction Approval.mxd 24 OAKS VALLEY RD Item 1.5 q

25 DATE: NOVEMBER 2, 2016 TO: BOARD OF DIRECTORS SUBJECT: APPROVAL OF CONSTRUCTION AGREEMENT FOR SAN ELIJO HILLS, PHASE V, P.A. O, UNIT 7 APN (SAN ELIJO HILLS DEVELOPMENT COMPANY, LLC) BACKGROUND: The San Elijo Hills Development Company, LLC, owner of the project, has completed the plan check process with the District. The project is located on Jasper Court, north of San Elijo Road and east of Ledge Street. DISCUSSION: The project will construct approximately 792 feet of 10-inch diameter PVC water main and 728 feet of 8-inch diameter PVC sewer main. Upon completion of the water and sewer facilities, water and sewer service will be available to 16 single family homes. A temporary sewer highline was installed in 2006 to serve the caretaker residence at the Double Peak park site prior to installation of any sewer infrastructure in this area. The project will provide a permanent sewer connection to the caretaker residence as part of the installation of sewer along Jasper Court. The temporary sewer highline will be abandoned. All engineering fees and inspection deposits have been paid prior to Board approval of the Construction Agreement. Water and wastewater capital facility fees are due and payable prior to issuance of the final building inspection and/or utility release per Resolution No The owner has submitted standard surety bonds to guarantee completion of the project. The following bond amounts have been reviewed and approved by staff: Labor and Materials $286, Faithful Performance $286, FISCAL IMPACT: None. Future water and sewer revenues will offset costs of service. RECOMMENDATION: Approve the construction agreement for San Elijo Hills Phase V, P.A. O, Unit Item 1.6

26 APPROVAL OF CONSTRUCTION AGREEMENT FOR SAN ELIJO HILLS PHASE V, P.A. "O" UNIT 7 APN ( SAN ELIJO HILLS DEV. COMPANY, LLC ) DOUBLE PEA K EXIST. WATER DR EXIST. SEWER REMOVAL OF 6" SEWER LINE FOR CARETAKER RESIDENCE PROPOSED 8" PVC SEWER P.A. "O" UNIT 8 LE D G E ST E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO SEH PA 'O' Unit 7\Construction Approval.mxd "S "S JASPER CT "S "S CARETAKER'S HOUSE j 26 PROPOSED 10" PVC WATER SAN ELIJO RD P.A. "O" UNIT 9 Item 1.6 q

27 APPROVAL OF CONSTRUCTION AGREEMENT FOR SAN ELIJO HILLS PHASE V, P.A. "O" UNIT 7 APN ( SAN ELIJO HILLS DEV. COMPANY, LLC ) DOUBLE PEA K EXIST. WATER DR EXIST. SEWER REMOVAL OF 6" SEWER LINE FOR CARETAKER RESIDENCE PROPOSED 8" PVC SEWER P.A. "O" UNIT 8 LE D G E ST E:\OLD_M_DRIVE\Common\PROJECTS\WO Projects\WO SEH PA 'O' Unit 7\Construction Approval.mxd "S "S JASPER CT "S "S CARETAKER'S HOUSE j 27 PROPOSED 10" PVC WATER SAN ELIJO RD P.A. "O" UNIT 9 Item 1.6 q

28 VWD DIRECTOR'S COMPENSATION FOR July - September 2016 Payments from EWA (Encina Wastewater Authority) VENDOR NAME EWA DATE CHECK NO INVOICE NET DESCRIPTION 2212 CRAIG ELITHARP 7/1/ SPECIAL MEETING 7/12/ CRAIG ELITHARP 7/27/ BOD MEETING 7/27/ CRAIG ELITHARP 9/1/ BOD MEETING 09/28/16 Meetings Only JIM HERNANDEZ 7/1/ SPECIAL MEETING 7/12/ JIM HERNANDEZ 7/27/ BOD MEETING 7/27/ JIM HERNANDEZ 8/29/ CIC MEETING 8/17/ JIM HERNANDEZ 8/29/ BOD MEETING 08/24/ JIM HERNANDEZ 9/1/ BOD MEETING 09/28/ JIM HERNANDEZ 9/1/ SPC MEETING 08/8/ JIM HERNANDEZ 9/1/ CIC MEETING 09/21/16 Meetings Only 1, Item 3.1

29 San Diego County Water Authority Board of Directors 3rd Quarter 2016 Expenses July, August, September Director Per Diem Payments Mileage Travel/Other Total Betty Evans $1, $ $25.00 $1, Item 3.1

30 Director Per Diem Meeting Reimbursements Meeting/Seminar # Payments Benefits Registration Travel Lodging Meals Other Agencies Total ELITHARP, Craig VALLECITOS WATER DISTRICT Board of Directors Per Diem and Expenses (1) July 1, 201 through September 30, 2016 Paid by VWD: VWD Meetings 16 $ 3, $ 3, COWU - Council of Water Utilities Group Insurance Paid by VWD - EWA pmt differential Paid by EWA - Encina JPA $ 4, $ $ $ $ - $ - $ - $ 4, EVANS, Betty Paid by VWD: VWD Meetings 7 $ 1, $ 1, ACWA (620.00) (620.00) COWU - Council of Water Utilities CSDA - CA Special Districts Assoc CSDA - CA Special Districts Assoc (505.00) (505.00) North County Group - Rincon Group Insurance - - 2, , Paid by VWD - COWU pmt differential Paid by VWD - SDCWA pmt differential Paid by SDCWA 11 1, , $ 3, $ 2, $ (520.00) $ - $ - $ - $ $ 5, HERNANDEZ, James Paid by VWD: VWD Meetings 18 $ 3, $ 3, ACWA CASA , COWU - Council of Water Utilities CSDA - CA Special Districts Assoc SDNEDC UWI - Urban Water Institute Group Insurance - - 5, , Paid by VWD - EWA pmt differential Paid by EWA - Encina JPA 7 1, , $ 6, $ 5, $ 1, $ $ $ $ - $ 14, MARTIN, Hal Paid by VWD: VWD Meetings 12 $ 2, $ 2, ACWA CASA , COWU - Council of Water Utilities CSDA - CA Special Districts Assoc SDNEDC UWI - Urban Water Institute WEF 5 1, , Group Insurance - - 1, , $ 5, $ 1, $ 1, $ $ $ $ - $ 9, SANELLA, Mike Paid by VWD: VWD Meetings 18 $ 3, $ 3, COWU - Council of Water Utilities CSDA - CA Special Districts Assoc 5 1, , SDNEDC Group Insurance , , $ 5, $ 1, $ $ $ $ $ - $ 7, TOTALS (1) 124 $ 24, $ 11, $ 2, $ 1, $ 1, $ $ $ 41, (1) Includes both expenses paid directly by the Agencies and reimbursements of expenses paid by Board members. Presented in accordance with ordinance number 194, effective 5/17/2015. (Board pay $200/meeting) - 30 Item 3.1