HomeMy WebLinkAbout04-07-21 Board PacketOTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
BOARD OF DIRECTORS MEETING
BY TELECONFERENCE
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
April 7, 2021
3:30 P.M.
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. LEGISLATIVE OVERVIEW (GLENN FARREL, SAN DIEGO COUNTY WATER AU-
THORITY GOVERNMENT RELATIONS MANAGER)
5. APPROVE THE MINUTES OF THE REGULAR MEETING OF MARCH 3, 2021 AND
SPECIAL BOARD MEETING OF MARCH 19, 2021
6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS-
DICTION BUT NOT AN ITEM ON TODAY'S AGENDA
This meeting is being held via teleconference. Members of the public may submit their
comments on agendized and non-agendized items by either of the following two meth-
ods:
a) No later than a half hour before the start of the meeting, complete and submit a
Request to Speak Form. Your request to speak will be acknowledged during the
“Public Participation” portion of the meeting when the board will hear your public
comment. When called to speak, please state your Name and the City in which
you reside. You will be provided three minutes to speak.
OR
b) No later than a half hour before the start of the meeting, email your comment to
BoardSecretary@otaywater.gov and it will be read aloud during the “Public Partici-
pation” portion of the meeting. Please provide your Name and the City in which
you reside, with your comment. Your comment must not take more than three
minutes to read.
The District’s meeting is live streamed. Information on how to watch and listen to the Dis-
trict’s meeting can be found at this link: https://otaywater.gov/board-of-directors/agenda-
and-minutes/board-agenda/
CONSENT CALENDAR
7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS
MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICU-
LAR ITEM:
a) AWARD A PROFESSIONAL SERVICES CONTRACT FOR AS-NEEDED PLAN
CHECK FOR DEVELOPER POTABLE AND RECYCLED WATER PROJECTS TO
MURRAYSMITH, INCORPORATED IN AN AMOUNT NOT-TO-EXCEED
$350,000, FOR A PERIOD OF THREE (3) FISCAL YEARS (FY 2021, FY 2022,
AND FY 2023). THE CONTRACTUAL END DATE WILL BE JUNE 30, 2023
b) AWARD A CONTRACT TO A. PREMAN ROOFING, INC. FOR THE RALPH W.
CHAPMAN WATER RECLAMATION FACILITY ROOF AND SKYLIGHT
REPLACEMENT AND REPAIR PROJECT IN AN AMOUNT NOT-TO-EXCEED
$168,355.00
ACTION ITEMS
8. GENERAL MANAGER
a) ADOPT THE 2021 OTAY WATER DISTRICT LEGISLATIVE PROGRAM POLICY
GUIDELINES AND PRIORITIES (OTERO / BROWNSTEIN, HYATT, FARBER,
AND SCHRECK, GIANNA SETOUDEH & TERESA COOKE)
9. BOARD
a) DISCUSS THE 2021 BOARD MEETING CALENDAR (RAMOS-KROGMAN)
INFORMATIONAL ITEMS
10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL
PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA
ITEMS:
a) 2021 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY PREPARED
BY THE XPERA GROUP (KOEPPEN / NEVIN)
REPORTS
11. GENERAL MANAGER’S REPORT
a) UPDATE ON DISTRICT’S RESPONSE TO COVID-19 PANDEMIC
12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
13. DIRECTORS' REPORTS/REQUESTS
14. PRESIDENT’S REPORT/REQUESTS
RECESS TO CLOSED SESSION
15. CLOSED SESSION
a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SER-
VICES [GOVERNMENT CODE §54957]
b) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERN-
MENT CODE §54956.9]
MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT,
CASE NO. 37-2015-00400000-CU-MC-CTL
c) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOV-
ERNMENT CODE §54956.9(d)(2)]
1 MATTER
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.
OTAY WATER DISTRICT FINANCING AUTHORITY
17. NO MATTERS TO DISCUSS
18. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be deliber-
ated 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 Acting District Secretary at (619) 670-
2253.
If you have any disability which would require accommodation in order to enable you to partici-
pate in this meeting, please call the Acting District Secretary at (619) 670-2253 at least 24 hours
prior to the meeting.
Certification of Posting
I certify that on April 2, 2021 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 2, 2021.
/s/ Tita Ramos-Krogman, Acting District Secretary
1
MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE
OTAY WATER DISTRICT, OTAY WATER DISTRICT FINANCING AUTHORITY, AND OTAY SERVICE CORPORATION March 3, 2021
1.The meeting was called to order by President Smith at 3:38 p.m.
2.ROLL CALL
Directors Present: Croucher, Keyes, Lopez, Robak and Smith
Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of
Operations Pedro Porras, Asst. Chief of Finance Kevin
Koeppen, Acting 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 Lopez, and carriedwith the following vote:
Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: None
to approve the agenda.
5.APPROVE THE MINUTES OF THE REGULAR MEETINGS OF JANUARY 6, 2021AND FEBRUARY 3, 2021
A motion was made by Director Croucher, seconded by Director Keyes and carriedwith the following vote:
Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith
Noes: None
Abstain: None Absent: None
to approve the minutes of the regular board meetings of January 6, 2021 and
February 3, 2021.
AGENDA ITEM 5
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 CALENDAR
7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM:
A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None
Abstain: None Absent: None to approve the following consent calendar items:
a) GENERAL MANAGER’S EXECUTION OF AN EMERGENCY AGREEMENT WITH CASS-ARRIETA CONSTRUCTION TO REPAIR THE DISTRICT’S 16-INCH WATER MAIN AND ROAD ON PASEO LADERA IN CHULA VISTA, CAUSED BY A MAIN BREAK, UPDATE
ACTION ITEMS
8. FINANCE
a) ADOPT RESOLUTION NO. 4392 AUTHORIZING THE DISSOLUTION OF
THE OTAY SERVICE CORPORATION (KOEPPEN) Kevin Koeppen, Assistance Chief of Finance, requested that the Board adopt Resolution No. 4392 authorizing the dissolution of the Otay Service Corporation
(OSC). Please reference the Committee Action notes, Attachment A of the staff
report, for additional details of Mr. Koeppen’s presentation. President Smith noted that dissolution of the OSC would bring savings to the District.
A motion was made by Director Robak, seconded by Director Lopez and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith
Noes: None
Abstain: None
3
Absent: None
to approve staff’s recommendation.
b) ADOPT RESOLUTION NO. 4393 AMENDING POLICY NO. 45, THE DEBT POLICY, OF THE DISTRICT’S CODE OF ORDINANCES (FAKHOURI)
Finance Manager Eid Fakhouri requested that the Board adopt Resolution No. 4393
to amend Policy No. 45, The Debt Policy, of the District’s Code of Ordinance. He stated that amending Policy No. 45 would save the District money. Please reference the staff report for further details of Mr. Fakhouri’s presentation.
A motion was made by Director Lopez, seconded by Director Robak and carried
with the following vote: Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None
Abstain: None
Absent: None to approve staff’s recommendation.
9. BOARD
a) DISCUSS THE 2021 BOARD MEETING CALENDAR There were no changes to the board meeting calendar.
10. RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE A MEETING OF THE OTAY SERVICE CORPORATION The Otay Water District board meeting was recessed at 3:56 p.m. and a meeting of
the Otay Service Corporation board was convened. 11. ROLL CALL Directors Present: Croucher, Keyes, Lopez, Robak and Smith
12. ADOPT RESOLUTION NO. 1008 AUTHORIZING THE DISSOLUTION OF THE OTAY SERVICE CORPORATION (KOEPPEN) Kevin Koeppen, Assistance Chief of Finance, requested that the Otay Service
Corporation (OSC) Board adopt Resolution No. 1008 to authorize the dissolution of the OSC. It was noted that dissolution of the OSC would increase savings for the District. A motion was made by Director Robak, seconded by Director Keyes and carried
with the following vote:
4
Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith Noes: None
Abstain: None
Absent: None to approve staff’s recommendation.
13. ADJOURN OTAY SERVICE CORPORATION BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT BOARD MEETING President Smith adjourned the Otay Service Corporation board meeting at 3:58 p.m. and reconvened the Otay Water District board meeting.
14. INFORMATIONAL ITEMS a) SECOND QUARTER OF FISCAL YEAR 2021 CAPITAL IMPROVEMENT PROGRAM REPORT
Engineering Manager Michael Long provided an update on the District’s second quarter of Fiscal Year 2021 Capital Improvement Program (CIP). Please reference Attachment C to the staff report for the details of Mr. Long’s presentation.
In response to comments from President Smith and Director Croucher, Mr. Long
stated that the PowerPoint presentation for the Quarterly CIP Reports will continue to report and focus on last quarter, year-to-date, and overall change order rates. b) FISCAL YEAR 2021 MID-YEAR STRATEGIC PLAN UPDATE
IT Manager Michael Kerr presented the fiscal year 2021 mid-year strategic plan update to the board. Please see Attachments A (Committee Action Notes) and B (PowerPoint Presentation) of the staff report for further details of Mr. Kerr’s presentation. Mr. Kerr indicated that the Strategic Plan Update was provided to the
Engineering, Operations, and Water Resources Committee on March 16th, and the Finance and Administrations Committee on March 17th. President Smith stated that the Strategic Plan has taken several years in the making and indicated that it is frequently updated by District staff. It is available for
review underer the “About Us” section of the District’s website.
Chief of Administration Adolfo Segura noted that the board, managers, and all District employees are the creators and owners of the Strategic Plan’s metrics, strategies, and objectives. Staff’s collaborative efforts to create and maintain the
Strategic Plan has saved the District money.
5
REPORTS
15. GENERAL MANAGER’S REPORT
General Manager Martinez presented information from his report that included the District’s response to the COVID-19 pandemic, collaboration with Sweetwater Authority and the County Water Authority to campaign for stimulus funds, Olsmar
Water Treatment Cyber Intrusion, CSMFO Operating Budget Award for Engineering
and Finance Departments, and the San Diego Community Power as an electric provider instead of SDG&E. 16. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
President Smith reported that after comparing the benefits and financial aspect of maintaining its current datacenter versus transitioning to Cloud storage, CWA approved an agreement to replace and upgrade its datacenter. He also shared that CWA enhanced its website with new formatting and photos. Lastly, he provided an
update on the Regional Stormwater Capture Pre-Planning and Feasibility Study.
Director Croucher reported that CWA was successful in receiving over $44 million from the lawsuit filed against MWD. He indicated that the Otay Water District will receive approximately $3.16 million from CWA, which will be sent to the District on
or around March 4, 2021. He also discussed a change in CWA’s board meetings with regards to disbanded and new committees. 17. DIRECTORS’ REPORT/REQUESTS
Directors Lopez indicated that he visited the Paseo Ladera area where the emergency main break occurred. A written report for Directors Croucher, Keyes, Lopez and Robak will be submitted to Acting District Secretary Ramos-Krogman and will be attached to the minutes for
today’s meeting. 18. PRESIDENT’S REPORT President Smith added to Director Croucher’s CWA and MWD lawsuit update. He
indicated that CWA plans to distribute approximately $44.4 million to agencies throughout the region. In response to a question from President Smith, Chief Financial Officer Joe Beachem stated that once Otay Water District receives funds from CWA, staff will look at the District’s overall budget and determine the best way to use those funds that would benefit the District’s ratepayers.
President Smith also provided an update of the South County Utilities Group’s collaboration with other agencies to create a video that provides information on COVID-19 funding and assistance to low-income families and individuals who are unable to pay their bills. He noted that Communications Officer Tenille Otero
participated in the video.
6
A written report from President Smith was submitted to Acting District Secretary Ramos-Krogman and will be attached to the minutes for today’s meeting.
RECESS TO CLOSED SESSION 19. CLOSED SESSION
General Manager Martinez and Legal Counsel Blumenfeld indicated that they did
not have anything to report on in closed session and there would be no need to meet in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY
20. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board.
21. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 4:58 p.m.
President ATTEST:
Acting District Secretary
(Director’s Signature)
GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Tim Smith Period Covered:
Employee Number: 1845 From: 2/1/21 To: 2/25/21
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
1 2/1/21 Council of Water Utilities
Meeting
Monthly Board Meeting - -
2 2/3/21 OWD Regular Board Meeting Monthly Board Meeting - -
3 2/10/21 Quarterly Director’s Meeting Meeting with GM Martinez to discuss
District updates - -
4 2/11/21 Committee Agenda Briefing Met with GM Martinez to review items that will be presented at the February
committee meetings
- -
5 2/17/21 EO&WR Committee Meeting Reviewed items that will be presented at the February Board Meeting - -
6 2/18/21 CSDA Quarterly Dinner Meeting Update on regional water issues and received an update from other agencies on COVID-19 response
- -
7 2/23/21 CWA Matters Meeting Discuss CWA Matters with GM and Director Croucher - -
8 2/24/21 East County Caucus Meeting Discuss East County issues with agencies and CWA
9 2/25/21 Agenda Briefing Meeting Met with GM Martinez and GC’s
Blumenfeld and Shinoff to review the March Board Meeting Agenda
Total Meeting Per Diem: $ 1,368
($152 per diem)
Total Mileage Claimed: 0 miles
03/02/2021
(Director’s Signature)
GM Receipt: Date:
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Gary Croucher Period Covered:
Employee Number: 7011 From: 2/1/21 To: 2/26/21
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME
MILEAGE
OTHER
LOCATIONS
1 2/1/21 COWA Council of Water Utilities - Statewide
Water issues - -
2 2/3/21 Board Regular Board Meeting - -
3 2/17/21 Committee Engineering and Operations Committee
Meeting - -
4
2/18/21 CSDA Covid Impacts to Special Districts - -
5 2/23/21 GM/President CWA Matters meeting updates and review - -
6
2/24 East County Caucus East County Water Agencies Caucus
meeting to discuss Regional Issues - -
7 - -
8
9
Total Meeting Per Diem: $912
($152 per diem)
Total Mileage Claimed: 0 miles
03-08-21
(Director’s Signature)
GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $
INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Ryan Keyes Period Covered:
Employee Number: 1896 From: 2-1-21 To: 2-26-21
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
1 2-3-21 OWD Regular Board
Meeting
Monthly Board Meeting - -
2 2-12-21 Quarterly Meeting with GM Meeting with GM Martinez - -
3 - -
4 - -
5 - -
6 - -
7 - -
8 - -
9 - -
10 --
Total Meeting Per Diem: $304
($152 per meeting)
Total Mileage Claimed: 0 Miles
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Jose Lopez Period Covered:
Employee Number: 7010
ITEM
1
2
3
4
5
6
7
8
9
10
DATE MEETING
02/02/21 South County EDC
02/03/21 Otay Water District
02/16/21 Otay Finance & Admin
Total Meeting Per Diem:
($152 per diem)
Total Mileage Claimed:
$ 456
2/1/21
PURPOSE / ISSUES
DISCUSSED
Monthly Board Meeting
Regular Board Meeting
Monthly Committee Meeting
0 miles
To: 2/28/21
:rvt:ILEAGE MILEAGE
HOM.EtoOWD OTHER OWDtoHOME LOCATIONS
--
--
--
-
--
--
--
(Director's Signature)
03-08-21
Mark Robak
7014 From:2/1/2021 2/28/2021
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 2/1/2021 Council of Water Utilities Joaquin Esquivel speaker, Chair State Water
Resources Control Board 0 0
2 2/2/2021 East County Chamber of
Commerce Government Affairs & Infrastructure Committee 0 0
3 2/3/2021 OWD Board Meeting OWD Monthly Board Meeting 0 0
4 2/4/2021 San Diego Chamber of
Commerce Sustainability & Industry Committee 0 0
5 2/5/2021 East County Chamber of
Commerce
First Friday Breakast with Gary Croucher
speaking about SDCWA 0 0
6 2/16/2021 Finance & Administration
Committee
Discussed District finance and administration
items 0 0
7 2/18/2021 CSDA Quarterly Meeting Discussion of Covid impacts on special districts 0 0
8 2/19/2021 Southern California Water
Coalition Discussion of PFAS in water 0 0
9 2/24/2021 ACWA Webinar Congressional Speech Program 0 0
10 2/25/2021 California Local Elected
Officials Conversation with Assemblyman Kevin Kiley 0 0
0 0
$ 1,520
0 Miles
GM Receipt: Date: ___________________
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To:Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($152 PER MEETING)
Total Meeting Per
Diem:
1
MINUTES OF THE
SPECIAL BOARD MEETING OF THE
BOARD OF DIRECTORS
OTAY WATER DISTRICT
March 19, 2021
1.President Croucher called the meeting to order at 2:33 p.m.
2.ROLL CALL
Directors Present:Croucher, Keyes, Lopez, Robak, and Smith
Staff Present:General Manager Jose Martinez, General Counsel Dan
Shinoff, General Counsel Jeanne Blumenfeld, Chief Financial
Officer Joe Beachem, Asst. Chief of Finance Kevin Koeppen,
Acting District Secretary Tita Ramos-Krogman and others per
attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF THE AGENDA
A motion was made by Director Robak, seconded by Director Croucher and carried
with the following vote:
Ayes: Directors Croucher, Keyes, Lopez, Robak and Smith
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
RECESS TO CLOSED SESSION
6.CLOSED SESSION
The board recessed to closed session at 2:35 p.m. to discuss the following matter:
a)CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION
[GOVERNMENT CODE §54956.9]
AGENDA ITEM 5
2
MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-
2015-00400000-CU-MC-CTL
RETURN TO OPEN SESSION
7. 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 4:35 p.m. and General Counsel Dan
Shinoff reported that the board took one reportable action. The board voted
unanimously, five to zero, for legal to proceed on the case of Coziahr, et al. vs. the
Otay Water District.
8. ADJOURNMENT
With no further business to come before the board, President Smith adjourned the
meeting at 4:35 p.m.
___________________________________
President
ATTEST:
Acting District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: April 7, 2021
SUBMITTED BY: Brandon DiPietro
Field Services Manager
PROJECT NO./ SUBPROJECT: Various DIV. NO. ALL
APPROVED BY: ☒ Michael Long, Engineering Manger
☒Rod Posada, Chief, Engineering
☒Jose Martinez, General Manager
SUBJECT: Award of Professional Services Contract for As-Needed Plan Check Services for Developer Potable and Recycled Water Projects for Fiscal Years 2021, 2022, and 2023
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors
(Board) award a Professional Services contract for As-Needed Plan Check Services for Developer Potable and Recycled Water Projects to Murraysmith, Incorporated (Murraysmith) and
authorize the General Manager to execute an agreement with Murraysmith in an amount not-to-exceed $350,000, for a period of
three (3) fiscal years (FY 2021, FY 2022, and FY 2023). The contractual end date will be June 30, 2023.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a Professional Services contract for As-Needed Plan Check Services for Developer Potable and Recycled Water Projects with
Murraysmith in an amount not-to-exceed $350,000, for a period of three (3) fiscal years (FY 2021, FY 2022, and FY 2023). The
contractual end date will be June 30, 2023.
AGENDA ITEM 7a
2
ANALYSIS:
The District will require the As-Needed Plan Check Services of a
consulting firm to provide professional services in support of developer potable and recycled water projects. The consultant assists the Public Services Section of the Engineering
Department in processing and performing plan check review for developer potable and recycled projects. The Plan Checking services require the consultant to be a Registered Civil Engineer (Project Manager) familiar with the District’s procedures. The Project Manager will provide quality control
for all plan reviews. A Project Engineer will provide approximately twenty (20) hours, on average, of plan review
service per set of plans. Services the consultant will perform are as follows: perform
plan review activities necessary to evaluate general compliance with the District, San Diego Water Agencies’ Standards, (SDWAS),
Department of Environmental Health and Quality (DEHQ), and Division of Drinking Water (DDW) standards as required for each plan received. The consultant will coordinate approval with District, DEHQ, DDW, and developers, as required. The consultant will deliver reviewed recycled water plan(s) to DEHQ
for their evaluation and approval. It is anticipated that the consultant will review approximately eighty (80) projects or more. Over the same period, staff estimates the cost to perform
this responsibility will not exceed $350,000. Since these services are as-needed, driven by development, and completely
funded by developer deposits, the full amount of this contract may not be expended. On December 14, 2020, the District solicited for As-Needed Plan Check Services for Developer Potable and Recycled Water Projects
by placing an advertisement on the District’s website, on Periscope (formerly BidSync), and in the San Diego Daily
Transcript. Six (6) firms submitted a letter of interest and a statement of qualifications. The Request for Proposal (RFP) for As-Needed Plan Check Services for Developer Potable and Recycled
Water Projects was sent to the six (6) firms resulting in three (3) proposals received by Friday, January 20, 2021, from the following firms:
• Murraysmith Incorporated, San Diego, CA
• PdM Consulting, Inc, Oceanside, CA
• West Yost Associates, San Diego, CA
3
The three (3) firms that chose not to submit a proposal were
Horrocks Engineers, Hunsaker and Associates, and VDLA Landscape Architects. Of the three (3) proposals received, they were found to be responsive with respect to the District’s
requirements. The remaining three (3) declined to propose due to various reasons including expressing difficulty with finding
capacity to accommodate additional work. In accordance with the District’s Policy 21, staff evaluated and
scored the written proposals of the three (3) firms on Wednesday, February 10, 2021. On February 18, 2021, the
District conducted interviews via Zoom with the three (3) firms. The District has chosen to utilize one consultant for this contract due to the volume of plan checks expected.
Murraysmith received the highest score for their services based
on their experience, understanding of the scope of work, and proposed method to accomplish the work. Though the composite rate was higher, the District expects to realize continued efficiencies in reduced consultant and District staff time in the processing of plan checks utilizing technological advances
employed by Murrysmith and the District. Murraysmith was the most qualified with the best overall rating or ranking. A summary of the complete evaluation is shown in Attachment B. Murraysmith submitted the Company Background Questionnaire, as
required by the RFP, and staff did not find any significant issues. Staff checked their references and performed an internet search on the company. Staff found the references to be excellent and did not find any outstanding issues with the internet search.
Murraysmith’s project manager, listed in the proposal, has vast
plan checking and project management experience. Staff estimated that an average of $3,000 will be needed per
project to perform the plan check review services. The District recuperates these funds by billing directly to the developer.
The District has historically utilized professional As-Needed services to support the delivery of private developer’s potable
and recycled water projects. The use of the As-Needed services is directly tied to the rate of development, which is influenced
by the economy. As-Needed services are flexible and only used as development is initiated. As a result, the use of As-Needed services in support of developer projects has been a useful tool
that can accommodate economic swings that may occur over time.
4
FISCAL IMPACT: ☒ Joe Beachem, Chief Financial Officer Plan check, inspection, and project management services are an on-going effort provided by the District’s Public Services
Division in support of developer projects. This expense is completely funded by developer deposits and does not affect the District’s operating budget. STRATEGIC GOAL:
This Project supports the District’s Mission statement, “To
provide exceptional water and wastewater service to its customers, and to manage District resources in a transparent and fiscally responsible manner” and the General Manager’s Vision,
"To be a model water agency by providing stellar service, achieving measurable results, and continuously improving operational practices." GRANTS/LOANS:
Not applicable.
LEGAL IMPACT:
None.
BD/ML:jf
OneDrive\ENG OPERATING - Documents\As-Needed Services\Plan Checking\FY21-23\ Staff Report As-Needed Plan Check Services for Developer Potable and Recycled Water Projects.docx Attachments: Attachment A – Committee Action Attachment B – Summary of Proposal Rankings
ATTACHMENT A
SUBJECT/PROJECT: Various
Award of Professional Services Contract for As-Needed Plan Check Services for Developer Potable and Recycled Water
Projects for Fiscal Years 2021, 2022, and 2023
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee (Committee) reviewed this item at a meeting held on March 16, 2021 and the following comments were made:
• Staff recommended that the Board award a Professional Services contract for As-Needed Plan Check Services for
Developer Potable and Recycled Water Projects to Murraysmith, Incorporated (Murraysmith) in an amount not-to-exceed $350,000, for a period of three (3) fiscal years
(FY 2021, FY 2022, and FY 2023). The contractual end date will be June 30, 2023.
• In response to a question from the Committee, staff stated that the District’s current plan checking consultant is
Murraysmith. It was noted that Murraysmith would complete out this fiscal year and the next two fiscal years (27 months). Following the discussion, the Committee supported staffs’
recommendation and presentation to the full board as a Consent Item.
Qualificatio
ns of Team
Responsiveness and Project
Understand
Technical and Manageme
nt
INDIVIDUAL
SUBTOTAL -
WRITTEN
AVERAGE
SUBTOTAL -
WRITTEN
Proposed Rates*
Consultant's
Com
TOTAL -
WRITTEN
Additional
Creativity and
Insight
Strength of
Project
Manager
Presentation and Communicati
on Skills
Responses to
Questions
INDIVIDUAL
TOTAL - ORAL
AVERAGE
TOTAL ORAL
TOTAL
SCORE
30 25 30 85 85 15 Y/N 100 15 15 10 10 50 50 150 Poor/Good/
Excellent
Marciano Santos 18 20 20 58 12 13 7 7 39
Brandon DiPietro 22 21 21 64 13 13 7 7 40
Michael Long 21 20 23 64 11 11 6 7 35
Jon Chambers 21 19 23 63 10 10 6 7 33
Juan Tamayo 25 20 20 65 10 10 8 7 35
Marciano Santos 25 22 25 72 13 14 8 8 43
Brandon DiPietro 26 22 24 72 14 13 9 8 44
Michael Long 27 23 26 76 13 13 8 9 43
Jon Chambers 26 21 26 73 14 13 8 8 43
Juan Tamayo 25 20 24 69 12 12 10 9 43
Marciano Santos 24 22 24 70 14 14 8 9 45
Brandon DiPietro 28 24 26 78 15 14 9 7 45
Michael Long 27 23 27 77 12 13 8 9 42
Jon Chambers 28 23 27 78 13 13 9 7 42
Juan Tamayo 25 22 25 72 13 12 10 9 44
Consultant Weighted Rate Score
PdM $74 15 *The fees were evaluated by comparing the weighted rates for six positions. The sum of the weighted rates are noted on the Rates Scoring Chart.
West Yost $149 2 Note: Review Panel does not see or consider rates when scoring other categories. Rates are scored by a staff member who is not on the Review Panel.
Murraysmith $165 1
REFERENCES
75 Y 76
2
44
15PdM63
74
120 Excellent
RATES SCORING CHART
YWest Yost 72
36 114
43 117
1
ATTACHMENT B
SUMMARY OF PROPOSAL RANKINGS
As-Needed Plan Check Services for Developer Potable and Recycled Water Projects - Fiscal Years 2021, 2022, and 2023
WRITTEN ORAL
Murraysmith
Y 78
MAXIMUM POINTS
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: April 7, 2021
PROJECT: DIV. NO.
SUBMITTED BY: Kent Payne, Purchasing & Facilities Manager
APPROVED BY: Adolfo Segura, Chief of Administrative Services
Jose Martinez, General Manager
SUBJECT: Award a Contract to A. Preman Roofing, Inc. for the Ralph W.
Chapman Water Reclamation Facility Roof and Skylight Replacement and Repair Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board) award a contract to A. Preman Roofing, Inc. (Preman) and authorize the General Manager to execute an agreement with Preman for the Ralph W. Chapman Water Reclamation Facility (RWCWRF) Roof and Skylight Replacement and Repair Project in an amount not-to-exceed $168,355.00.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To obtain Board authorization for the General Manager to enter into a contract with Preman for the RWCWRF Roof and Skylight Replacement and Repair Project in an amount not-to-exceed $168,355.00.
ANALYSIS:
The District engaged Westcoast Roof Consulting (Westcoast) in May 2019, through a solicitation process, to conduct a survey of roof conditions
at the District’s main facilities and pump stations. The survey detailed each building’s roof system condition, year built, deficiencies, and
remaining life expectancy. Included in the survey are recommendations, schedules, and estimated budgets to extend the current life where possible and to anticipate the eventual replacement of each roof system.
AGENDA ITEM 7b
The survey at RWCWRF indicated that the two main building roof systems
had reached their useful life and that replacement was required, while the roofs at the Admin Trailer and Equipment Warehouse needed repairs. District staff directed Westcoast to develop bid specifications and to
provide an estimate from which to solicit bids. The estimate was $193,250 and the general scope of work consists of the following (see
Attachment B): Building 1 & 2: Replace low sloped and mansard roofs and skylights.
Admin Trailer: Minor repairs with patching and sealing.
Warehouse: Metal roof coating and skylight replacement.
On January 21, 2021, the project was publicly advertised for bid using
Periscope Source (formerly BidSync), the District’s online bid solicitation portal, via the District’s website, and in the Daily Transcript. An online Zoom Pre-Bid Conference was held on February 4, 2021; followed by two contractor site visits. Bids were received via Periscope Source and publicly opened February 18, 2021, via Zoom with
the following results:
A thorough submittal review was performed by District staff, along with reference and background checks, and determined that Preman was the
lowest responsive and responsible bidder. Preman is registered with the Department of Industrial Relations, holds a B (General Building Contractor) and C-39 (Roofing) Contractor’s License, which are valid
Contractor Total Bid Amount
1 A. Preman Roofing, Inc. San Diego, CA $168,355.00
2 Weather-Tech Roofing Inc. El Cajon, CA $169,990.00
3 A Good Roofer, Inc. Lakeside, CA $176,632.00
4 Chambers Inc. dba Roof Construction Escondido, CA $182,350.00
5 Greencal Construction Inc. Carson, CA $189,000.00
6 Sylvester Roofing Company, Inc. Escondido, CA $195,000.00
7 Commercial & Industrial Roofing Company, Inc. Spring Valley, CA $221,097.00
8 ACCI Roofing Services Lakeside, CA $229,469.00
9 Commercial Waterproofing Systems, Inc. dba
ERC Roofing & Waterproofing Santa Ana, CA $248,500.00
10 Best Contracting Services, Inc. Gardena, CA $319,000.00
11 Danny Letner Inc. dba Letner Roofing Company
Orange, CA $345,000.00
through October 31, 2022. A review of the company’s background and
safety questionnaires revealed no issues of concern. Weather-Tech Roofing Inc., the second lowest bidder, submitted a protest
stating that “The Bid Security Bond submitted by A. Preman Roofing, Inc., does not specify a dollar amount. On their Bid Security Bond form,
the "sum not to exceed" field contains only the following language: "Ten Percent (10%) of Total Bid".
After careful review and consultation with District Counsel, staff determined that the irregularity is minor as Preman’s bid includes a
completed Bid Security Bond that satisfies all the Instructions to Bidders’ Bid Security requirements; that Nationwide Mutual Insurance Company does guarantee payment of ten percent of the bid amount; that
the irregularity does not “[1] affect the amount of the bid or [2] give a bidder an advantage or benefit not allowed other bidders” (Konica
Business Machines v. Regents of University of California (1988) 206 Cal. App. 3d 449,454); and, that the District expressly reserves the right “to waive any irregularities and informalities” and can therefore award the contract to Preman. FISCAL IMPACT: Joe Beachem, Chief Financial Officer
CIP’s R2144 and S2067 RWCWRF Roofing Replacement and Natural Light Enhancement were established to cover the expenditures including this
contract in the amount of $168,355.00, plus as-needed damage repairs. Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP’s R2144 and S2067 is sufficient to support the Project. The Finance Department has determined that, under the current rate model, 100% of the funding is available from the Replacement Fund.
STRATEGIC GOAL:
Supports the Districts Strategy: “Ensure financial health through formalized policies, prudent investing, and efficient operations”.
LEGAL IMPACT:
None.
Attachments:
Attachment A - Committee Action Report Attachment B – Picture of Replacement/Repair Project
ATTACHMENT A
SUBJECT/PROJECT:
Award a Contract to A. Preman Roofing, Inc. for the Ralph W. Chapman Water Reclamation Facility Roof and Skylight Replacement and Repair Project
COMMITTEE ACTION: The Finance & Administration Committee (Committee) reviewed this item
at a meeting held on March 17, 2021 and the following comments were made:
• Staff recommended that the Board award a contract to A. Preman Roofing, Inc. (Preman) for the Ralph W. Chapman Water Reclamation
Facility (RWCWRF) Roof and Skylight Replacement and Repair Project in an amount not-to-exceed $168,355.00.
• The Committee inquired if the District had previously worked with Preman. Staff stated no, but Preman has worked with other
governmental agencies who indicated their satisfaction with Preman’s services. Following the discussion, the Committee supported staffs’ recommendation and presentation to the full board as a Consent Item.
Ralph W. Chapman Water Reclamation Facility
Roof and Skylight Replacement and Repair Project
Building 1 & 2: Replace low sloped and mansard roofs and skylights.
Admin Trailer: Minor repairs with patching and sealing.
Equipment Warehouse: Metal roof coating and skylight replacement.
1
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: April 7, 2021
SUBMITTED BY: Tenille M. Otero PROJECT: Various DIV. NO. All
APPROVED BY: Jose Martinez, General Manager
SUBJECT: 2021 Legislative Program Policy Guidelines and Priorities
GENERAL MANAGER’S RECOMMENDATION: That the Board of Directors adopt the 2021 Otay Water District Legislative Program Policy Guidelines and 2021 Top 10 Legislative
Priorities.
COMMITTEE ACTION: See Attachment A.
PURPOSE: To provide direction to staff and the Otay Water District’s
legislative advocates in the formulation of the District’s response to legislative initiatives on important issues that could impact the District and/or other local water agencies.
To present to the Board of Directors the 2021 Legislative Program
Priorities, which staff and legislative advocates will proactively monitor and/or act on during the 2021 legislative session and throughout the year.
ANALYSIS:
The Otay Water District maintains a set of legislative policy guidelines to direct staff and its legislative advocates on issues important to the District. The legislative guidelines are updated annually and/or as needed with the proposed updates presented to the District’s Board of Directors for review, comment, and adoption. The
2021 Legislative Program represents policy guidelines on legislation for the Board’s consideration.
Normally, representatives to the California Legislature introduce 2,000 or more bills or significant resolutions. While many bills fail to make it out of their house of origin, many others go on to be
signed by the governor and become law. These new laws can
AGENDA ITEM 8a
2
fundamentally affect special districts. The same is true with each session of the House of Representatives and the U.S. Senate.
The 2020 legislative session commenced quite differently compared to “normal” years of legislative sessions. As a result of the COVID-19 pandemic, state and federal representatives were limited on the
number of bills that would be considered. Last year represents the fewest number of bills considered by a governor in many years. The
governor considered 428 bills passed by the legislature. Of those measures, the governor signed 372 bills into law and vetoed 56 bills. The number of bills introduced and considered in 2021 were more
consistent with the number of new bill introductions from previous years, excluding 2020. District staff and its legislative advocates
continue to monitor legislation or issues that could impact the District.
The 2021 Legislative Program establishes guidelines and policy
direction that can be used by staff and legislative advocates when monitoring legislative activity to facilitate actions that can be
taken quickly in response to proposed bills or issues. The guidelines provide a useful framework for staff and legislative advocates when evaluating the potential impact of state or federal legislation on the District. This is particularly helpful when a timely response is necessary to address last-minute amendments to legislation, District
participation in coalitions on issues, and should calls or letters of support or opposition be needed.
Legislation that does not meet the guidelines as set forth or that has potentially complicated or varied implications, will not be acted upon by staff or the District’s legislative advocates, and will
instead be presented to the Board directly for guidance in advance of any position being taken.
The San Diego County Water Authority has its own set of legislative policy guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and carefully chosen
policies and issues from the Water Authority’s guidelines that may have a direct or indirect impact on the District. These policies and
issues have been incorporated into the District’s guidelines. Although the District is a retail agency and is focused on its local service area, if there are issues or polices contained in the Water
Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the
District’s legislative advocates may act on those issues, respectively.
The 2021 Legislative Program Policy Guidelines presents staff’s recommendations for the Board’s review and seeks the Board’s feedback for any additional modifications. Staff will then incorporate the
Board’s recommendations into the final document.
3
In general, the guidelines look to protect the District’s interest in a reliable, diverse, safe, and affordable water supply. Moreover,
they seek to maintain local control over special district actions to protect the Board’s discretion and ratepayers’ interests and maintain the ability to manage District operations effectively and
efficiently. In addition, they express the District’s ongoing support for financial assistance to water agencies and customers regarding
nonpayment due to financial hardships related to COVID-19, water-use efficiency, recycled water, seawater desalination, capital improvement project development, organization-wide safety and
security, binational cooperation, climate change, and funding, including the equitable distribution of water bond proceeds. These
guidelines also demonstrate the District’s strong and collaborative support and efforts to advocate against a “one-size-fits-all” approach and any unfunded mandates by legislation or regulation.
The proposed redlined 2021 Legislative Program Policy Guidelines are included in Attachment B. Revisions, updates, and recommended
additions are underlined, while deletions are reflected by strikethroughs. A clean copy of the proposed changes is included in
Attachment C. When the Board adopts the updated guidelines, staff will incorporate recommended changes by the Board into the final document.
In the proposed redlined 2021 guidelines presented to the Board in Attachment B, staff made modifications to several sections. Staff
also added the following sections:
• Biological and Habitat Preservation
• Desalination
• Water Quality Issues
• Workforce Development
In addition, staff is presenting the District’s anticipated Top 10 Legislative Priorities for the year (Attachment D). This list highlights, in no particular order, specific legislation or issues that District staff and/or the Water Authority is currently monitoring and/or may take or has already taken a position on.
The deadline for bill introduction was Feb. 19, 2021. Typically, lobbyists and legislative staff wait until the last couple of days leading up to the deadline, and then hundreds of bills will be introduced. Based on the bills/issues that were introduced by this year’s deadline, staff worked with the District’s legislative
consultant to develop a list of priority issues for 2021. Staff and the District’s consultant will continue to monitor those bills and
issues that may affect the District. Staff will update the Board as necessary throughout the year to provide updates on legislative issues impacting the District.
4
District staff continues to proactively work with the Water
Authority’s government relations staff, the District’s legislative consultant, the Association of California Water Agencies, California Special Districts Association, California Water Efficiency
Partnership, California Municipality Utilities Association, and other related coalitions, associations, and organizations to monitor
legislative issues that affect the District and its ratepayers. It is critical that District and its staff remain engaged in these issues as they could have an impact on how the District conducts day-to-day
operations and operates and maintains its facilities, thus affecting its ratepayers. FISCAL IMPACT: Joe Beachem, Chief Financial Officer
None. STRATEGIC GOAL: Execute and deliver services that meet or exceed customer
expectations, and increase customer engagement in order to improve District Services. Enhance and build awareness and engagement among the District’s customers and stakeholders and within the San Diego Region about the
District’s strategies, policies, projects, programs, and legislative/regulatory issues. LEGAL IMPACT: None.
Attachments: A) Committee Action
B) Proposed 2021 Otay Water District Legislative Program Policy Guidelines (Redlined) C) Proposed 2021 Otay Water District Legislative Program Policy
Guidelines D) Top 10 Legislative Priorities for 2021
5
ATTACHMENT A
SUBJECT/PROJECT:
2021 Legislative Program Policy Guidelines and Priorities
COMMITTEE ACTION:
The Conservation, Public Relations, Legal and Legislative Committee (Committee) reviewed this item at a meeting held on March 16, 2021 and the following comments were made:
• Staff recommended that the Board adopt the 2021 Otay Water District Legislative Program Policy Guidelines and 2021 Top
10 Legislative Priorities.
• As stated in the staff report, the 2021 Legislative Program establishes guidelines and policy direction that can be used by staff and legislative advocates when monitoring
legislative activity to facilitate actions that can be taken quickly in response to proposed bills or issues.
Staff noted that this is extremely helpful when a timely response is necessary to address last minute amendments to legislation. For example, recently there was a joint effort
from agencies throughout the state to gather letters of support related to financial needs for customers and water
agencies during the COVID-19 pandemic.
• Please refer to Attachment B for modifications to several sections of the 2021 Legislative Program Policy Guidelines and Priorities, which include the following added sections: o Biological and Habitat Preservation
o Desalination o Water Quality Issues o Workforce Development
• Staff indicated that Attachment D provides the District’s
anticipated Top 10 Legislative Priorities for the year. It was noted that the District’s consultant, Brownstein, Hyatt, Farber and Schreck will attend the April 7, 2021
6
Board of Directors Regular Board meeting to present the Top
10 Legislative Priorities.
• The Committee commended staff for drafting the 2021
Legislative Program Policy Guidelines and Priorities as it provides local agencies the guidelines for local solutions as opposed to the State and Federal Government’s “one-size-fits-all” approach.
• In response to several questions from the Committee, staff indicated that Page 18 of Attachment C covers water recycling and potable reuse matters. Staff also noted that although the Legislative Program Policy Guidelines are broad and does not specify one specific matter or project,
the Regional Conveyance System (RCS) Project is covered under Pages 16 (Optimize District Effectiveness) and 20 (Water Services and Facilities) of Attachment C.
• Following a discussion of biogas and other renewable energy
resources, the Committee suggested that staff reach out to San Diego Community Power to seek opportunities of establishing renewable energy resources that may increase savings and generate revenues for the District.
Following the discussion, the Committee supported staff’s recommendation and presentation to the full board as an Action Item.
Otay Water District Legislative Program 20192021
1 | Page
Effective Date: 042/076/202119
Legislative Program Policy Guidelines
Purpose
The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board of Directors through 20212018. The guidelines provide direction to staff and the legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in
the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager,
District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines.
While the title of this document suggests these policy guidelines are applicable solely to state and
federal legislative issues reviewed by the San Diego County Water Authority (Water Authority), the
District and other state and other local water agencies, increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local agencies. Otay District staff, including the District’s legislative team, often utilize these Legislative Policy Guidelines to provide
guidance on emerging and active regulatory and administrative issues.
Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance
of any position being taken.
The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues
have been incorporated into the District’s guidelines. Although the District is a retail agency and is
focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively.
Attachment B
Otay Water District Legislative Program 20192021
2 | Page
Table of Contents
The Otay Water Legislative Policy Program Guidelines for the 2019 2021Legislative Session includes the following categories: I. Binational Issues…………………………………………....……………... Page X3
II. Biological and Habitat Preservation………………………………………Page XX I.III. Desalination……………………………………………………………….. Page X II.IV. Drought Response………………………………………………………… Page X3
III.V. Energy……………………………………………………………………… Page X4 IV.VI. Financial Issues…………………………………………………………… Page X5 A. Fees, Taxes, and Charges………………………….......................... Page 5X
B. Funding…………………………………………………………….. Page X7
C. Rates………………………………………………………………... Page X9 D. Water Bonds……………………………………………………….. Page X9 V.VII. Governance and Local Autonomy……………………………………….. Page 10X
VI.VIII. Imported Water Issues……………………………………………………. Page 11X A. Bay-Delta……………………………………………………………… Page 11X i. Co-equal Goals……………………………………………………. Page 11X ii. Water FixBay-Delta Conveyance
Project………………………………………………………….. Page 12X
B. Metropolitan Water District…………………………………………… Page 12X C. Colorado River………………………………………………………… Page 13X D. State Water Project…………………………………………………….. Page 13X
VII.IX. Optimize District Effectiveness……………………...…………....………. Page 14 X Water Recycling and Potable Reuse……………………………………… Page 14 VIII.X. Safety, Security, and Information Technology……………....................... Page 16 X
XI. Water Quality Issues………………………………………………………. Page XX XII. Water Recycling and Potable Reuse……………………………………… Page XX
IX.XIII. Water Service and Facilities……………………………………………… Page 16X XIV. Water-Use Efficiency……………………………………………………… Page 19X
Otay Water District Legislative Program 20192021
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X.XV. Workforce Development………………………………………………….. Page XX
Otay Water District Legislative Program 20192021
4 | Page
I. Binational Issues
Support initiatives that: 1. Promote and provide funding for cross-border water supply and infrastructure development projects such as water pipelines, desalination plants or water treatment facilities to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in
development of supply and infrastructure projects that will benefit the entire border region. 2.3.Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 3.4.Develop and enhance communications and understanding of the interdependence of
communities on both sides of the border with the goal of improved cross-border cooperation.
Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and
infrastructure projects in the San Diego/Baja California region.
II. Biological and Habitat Preservation
Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystem, rather than individual species. 2. Exempt operation, maintenance, ad repair of water system facilities from endangered species
and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making
those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services.
6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that:
1. Reduce or limit the use of existing water rights or supplies,
2. Restrict the development of future water supplies.
3. Impose endangered species or habitat conservation requirements that restrict the operation,
maintenance, or repair of public water supply, conveyance, treatment, or storage facilities.
Otay Water District Legislative Program 20192021
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III. Desalination
Support initiatives that: 1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities.
4. Preserve and protects potential seawater desalination sites and existing coastal facilities including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are
feasible or cost-effective at every site.
II.IV. Drought Response
Support initiatives that:
1. Ensure the District and other local agencies including the Water Authority and San Diego
County water agencies receive the water supply benefits of its investment in local water
supply sources.
2. Allow local agencies to achieve compliance with emergency or non-emergency drought
regulations or objectives through a combination of water conservation measures and
development and implementation of local water supply sources that are not derived from the
Delta.
3. Allow for local agencies to account for all water supplies available during droughts and other
events when calculating the water supply shortage level.
4. Create a process for development and implementation of emergency drought declarations and
regulations that recognizes variations among communities, regions, and counties with respect
to their abilities to withstand the impacts and effects of drought.
5. Recognize variations among communities, regions, and counties with respect to their abilities
to withstand the impacts and effects of droughts, and ensure that any temporary or permanent
statutory or regulatory direction for improving water-use efficiency to meet statutory or
regulatory goals or standards is focused on regional achievement of objectives rather than a
one-size -fits -all approach.
Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential
for recycled water, potable reuse, desalination, and other drought-resilient local water
supplies.
2. Create a “one-size -fits -all” approach to emergency drought declarations and regulations that
ignores variations among communities, regions, and counties with respect to their ability to
withstand the impacts and effects of drought.
Otay Water District Legislative Program 20192021
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III.V. Energy
Support initiatives that:
1. Provide opportunities for reduced energy rates under tariff schedules for the District.
2. Provide protection to the District from energy rate increases and provides rate relief for
member agencies.the District.
3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind,
battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage
facilities and other renewable energy generation or storage technology as means of reducing
greenhouse gas emissions and energy cost.
4. Promote funding for use of renewable energy in the operation of District facilities.
5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial
viability of renewable energy facilities obligated under long-term Power Purchase
Agreements.
6. Provide greater flexibility in the utilization of the District’s facilities for generation and
acquisition of electrical and natural gas power.
7. Provide the District with greater flexibility in the licensing, permitting, interconnection,
construction, and the operation of its existing and potential in-line hydroelectric, solar, wind,
battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other
renewable generation or storage technology.
8. Make SWP power available for all water projects.
9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop
pumped-energy storage facilities as a clean, environmentally sound, and renewable energy
resource.
10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and
environmentally sound energy resource that provides electric and reliability and resiliency,
especially during times of potential blackouts.
11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility
discharge systems.
12. Promote the production, purchase, delivery, and use of alternative sources of energy on a
wholesale basis.
13. Promote large-scale (greater than 50 MW) pumped storage as counting toward energy storage
procurement targets.
14.13. Provide clear statutory, regulatory, or administrative authority for the San Diego
County Water Authority to wheel acquired or produced power to itself, the DistrictDistrict, or
entities with which the Water Authority is under contract for the purchase, treatment,
transport, or production of water.
15.14. Recognize all grid services that energy storage provides, and supports fair
compensation in the wholesale energy market for such services.
Otay Water District Legislative Program 20192021
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16.15. Provides timely, efficient, and cost- effective interconnection of new energy resources
such as solar, inline hydroelectric, pumped-energy storage, and other renewable energy
generation or storage technologies to the electric distribution and transmission grid.
17.16. Recognize the value of large-scale hydropower and pumped-energy storage
hydropower facilities in assisting the state to meet its renewable and zero-carbon emission
goals of 100 percent by 2045.
Oppose initiatives that:
1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the
facilities of the Water Authority and the District.
2. Impose greenhouse gas reduction obligations on a public water agency for electricity
purchased or produced for the sole purpose of operating its system.
3. Adversely affect the ability of the District or other water agencies in the county to own,
operate, and/or construct work for supplying its member public agencies, or its own facilities
with natural gas and electricity.
4. Impede the District or other water agencies in the county, the ability to contract for, deliver,
and use the purchase of natural gas and electricity from the United States, the State of
California, and any other public agency or private entity and sell the gas and electricity to any
public agency or private entity engaged in retail sales of electricity and gas.
5. Reduce the District’s ability to maintain high operational efficiency at all timesalways
maintain high operational efficiency.
6. Restrict the District’s ability to expand or improve infrastructure or facilities.
7. Restrict or caps future energy demands needed for possible expansion of recycled water,
potable reuse, and desalination projects.
8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or
existing facilities.
9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that
may be implemented at the District or other agency facilities.
10. Prevent the District from enhancing energy reliability and independence for their its facilities.
11. Do not count or credit qualified renewable energy projects toward accomplishment and
satisfaction of the California Renewables Portfolio Standard objectives.
12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or
administrative authority necessary to wheel - acquired or produced power to itself, or the
District, or other entities with which the Water Authority is under contract of the purchase,
treatment, transport, or production of water.
13. Result in a lengthy, more complicated, or more costly interconnection of new energy
resources, such as solar, inline- hydroelectric, pumped-energy storage, and other renewable
energy generation or storage technologies to the electric distribution and transmission grid.
IV.VI. Financial Issues
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A. Fees, Taxes, and Charges
Support initiatives that:
1. Require the federal government and State of California to reimburse special districts for
all mandated costs or regulatory actions. 2. Give special districts the discretion to cease performance of unfunded mandates. 3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding.
4. Provide incentives for local agencies to work cooperatively, share costs or resources.
5. Provide for the stable, equitable and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement.
9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit
to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that:
1. Impose mandated costs or regulatory constraints on local agencies and their customers
without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the Water Authority or its member agencies under
California’s Proposition 1A (November 2, 2004).
4. Reallocate special districts reserves in an effort to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local
agencies de facto tax collectors for the state.
7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans.
9. Add new mandates to the Department of Water Resources (DWR) to review and approve
Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document.
11. Weaken existing project retention and withholding provisions that limit the ability of
public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the San Diego County Water Authority or its member agencies’ ability to provide
reasonable service at reasonable costs to member agencies or to charge all member
agencies the same rate for each class of service consistent with cost-of-service requirements of the law.
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14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts.
15. Mandate a specific rate structure for retail water agencies.
16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected. 17. Impose a water user fee for statewide projects or programs, for which the projects or
programs are not clearly defined, the beneficiaries identified, and reasonable costs
identified. 18. Impose a water user fee in order to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent of water user fees for administrative costs.
20. Do not restrict the use of water user fees to only the specific purposes for which they are
imposed, without any possibility of diversion to meet other fiscal needs of the state. 21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general
obligation bond.
23. Establish regulatory or permit fees that lack a nexus to the costs of oversight. 24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide.
B. Funding
Support initiatives that:
1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the Water Authority and its member agencies with additional forms of cost-
effective financing for public facilities.
3. Revitalize the Title XVI federal funding program by converting new authorizations to a
competitive grant program with congressional oversight while protecting existing Title
XVI authorizations for the San Diego region.
4. Provide the Water Authority and its member agencies with grant funding for public
facilities.
4.5.Provide the District, other local water agencies, and water ratepayers with post-COVID-19
financial relief through a variety of means, including but not limited to, direct financial
assistance and flexibility in debt management to assist water ratepayers and water
suppliers.
5.6.Authorize financing of water quality, water security, and water supply infrastructure
improvement programs.
6.7.Establish spending caps on State of California overhead when administering voter
approved grant and disbursement programs.
7.8.Require disbursement decisions in a manner appropriate to the service in question.
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8.9.Encourage funding infrastructure programs that are currently in place and that have been
proven effective.
9.10. Provide financial incentives for energy projects that increase reliability, diversity, and
reduce greenhouse gasses. 10.11. Continue energy rate incentives for the utilization of electricity during low-peak periods. 11.12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects.
12.13. Provide for population-based distribution of IRWM funds to ensure adequate distribution of grant funding throughout the state. 13.14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 14.15. Improve and streamline the state’s reimbursement process to ensure timely remittance
of IRWM funds.
15.16. Promote the ability of the Regional Water Management Group to more directly administer state grant funds specifically identified for IRWM Programs. 16.17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan.
17.18. Provide funding or other incentives for conservation, peak management programs,
water recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources.
18.19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other
byproducts created in the water treatment process. 19.20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects.
20.21. Provide funding for potable reuse demonstration projects and studies.
21.22. Authorize federal and state funding to develop and implement regional or subregional conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 22.23. Provide state and/or federal funding for the restoration of the Salton Sea.
23.24. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Lower Colorado River from Lee's Ferry to the southerly international border with Mexico. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta.
26. Permit the use of grant funding for projects implemented under public-private partnerships where the grant provides funding for a public benefit. 27. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state
agencies consider and respond to comments received through the outreach process.
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Oppose initiatives that:
1. Impose additional administrative requirements and/or restricts the Water Authority’s or its member agencies’ ability to finance public facilities through the issuance of long-term debt. 2. Interfere with the responsibility of a region, operating under an Integrated Regional Water Management Plan, for setting priorities and generating projects to be paid from any
IRWM accounts and grants.
3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region. 4. Establish IRWM funding criteria that limits local discretion in project selection. 5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to
new restrictions on the operation or use of water supply facilities unless funding for
alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open space/habitat preservation, restoration, or creation. 6.
C. Rates
Support initiatives that:
1. Maintain the authority of water agencies to establish water rates locally, consistent with cost-of-service requirements of the law. 2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law.
Oppose initiatives that: 1. Impair the Water Authority’s or its member agencies’ ability to provide reliable reasonable service at reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service
requirements of the law.
2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts. 4. Mandate a specific rate structure for retail water agencies.
5. Prescribe mandatory conservation-based rate structures that override the authority of the
boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies. 6. Usurp special district funds, reserves, or other state actions that force special districts to raise rates, fees, or charges.
D. Water Bonds
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Support initiatives that: 1. Provide an equitable share of funding to San Diego County, with major funding categories
being divided by county and funded on a per-capita basis to ensure bond proceeds are
distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat, construction of an improved method of conveyance of water through or around the Delta that provides water supply reliability to Delta water users, promotion of greater regional
and local self-sufficiency, surface storage, and promotion of water-use efficiency.
3. Ensures funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and refine its plan and to develop institutional structures necessary to establish and implement the plan.
5. Give primary consideration to funding priorities established by local and regional entities
through their IRWM planning process. 6. Ensure the application process for funding is not unnecessarily burdensome and costly, with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent of bond funding amounts.
8. Place as much emphasis and provides at least as much funding for surface storage as for
groundwater storage. 9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.”
10. Fund emergency and carryover storage projects including those in San Diego County.
11. Consolidate administration of all voter-approved water-related bond funding in one place, preserves existing expertise within the state bureaucracy to manage bond-funding processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co-
equal goals of water supply reliability and Delta ecosystem restoration.
13. Provide funding for water infrastructure that resolve conflicts in the state’s water system and provide long-term benefits to statewide issues including water supply, reliability, water quality, and ecosystem restoration.
Oppose initiatives that:
1. Do not provide an equitable share of funding to San Diego County based on the San Diego County taxpayers’ proportional contribution to repayment of the bonds. 2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies.
3. Do not provide funding that result in net increases in real water supply and water supply
reliability. 4. Commit a significant portion of bond funding to projects that do not result in net increases in real water supply or water supply reliability.
V.VII. Governance/Local Autonomy
Support initiatives that: 1. Expand local autonomy in governing special district affairs.
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2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote
efficiency and avoid duplication of services.
4. Streamline the Municipal Service Review Process or set limits on how long services reviews can take or cost. 5. Establish clear and reasonable guidelines for appropriate community sponsorship activities. 6.5.Reaffirm the existing “all-in” financial structure, or protect the San Diego County Water
Authority voting structure based on population. 6. Promote measures that increase broader community and water industry representation/appointments on State decision making bodies. 7. Ensure and open and transparent process for adoption of regulations, policies, and guidelines. 7.8.Preserve the District and other local water agencies’ ability to establish local priorities for
water resources planning decisions.
Oppose initiatives that: 1. Assume the state legislature is better able to make local decisions that affect special district governance.
2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district finance, operations, or governance. 5. Diminish the power or rights of the District’s governing body to govern the District’s affairs.
6. Diminish the power or rights of the District to govern relations with its employees.
6.7.Modify the committee or board voting structure or District and member agency board representation on the San Diego County Water Authority Board of Directors unless such changes have been expressly authorized by the District’s Board. 7.8.Create unfunded local government mandates.
8.9.Create costly, unnecessary, or duplicative oversight roles for the state government of special
district affairs. 9.10. Create new oversight roles or responsibility for monitoring special district affairs. 10.11. Change the San Diego County Water Authority Act regarding voting structure, unless it is based on population.
11.12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 12.13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for public works construction or their operation. 13.14. Impair the ability of water districts to acquire property or property interests required
for essential capital improvement projects. 14.15. Increase the cost of property and right-of-way acquisition, or restricts the use of right-of-ways. 15.16. Work to silence the voices of special districts and other local government associations on statewide ballot measures impacting local government policies and practices, including
actions that could prohibit special districts and associations from advocating for positions on
ballot measures by severely restricting the private resources used to fund those activities. 16.17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure.
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18. Circumvent the legislative committee process, such as the use of budget trailer bills, to advance policy issues including impacting special districts without full disclosure,
transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region. 20. Impose mandates requiring specific water resources be developed by water agencies that fail to consider local factors such as water reliability, hydrologic and geographic characteristics,
and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities. 17.21. Limit the District’s ability to establish local priorities for water resources planning decisions.
VI.VIII. Imported Water Issues A. Bay-Delta i. Co-Equal Goals
Support initiatives that:
1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public. 2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and
protect the Bay-Delta’s ecosystem.
3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package. 4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher.
5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP) operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors.
7. Support continued state ownership and operation of the SWP, including WaterFix project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor.
9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program. 11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for
other measures that protect the environment and public health.
Oppose efforts that:
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1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large.
2. Transfer operational control of the State Water Project or any of its facilities to the
Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any entity comprised of MWD or other water project contractors, or any other special interest group.
ii. WaterFixBay-Delta Conveyance Project
Support initiatives that: 1. Are consistent with the Water Authority’s Board of Directors’ Aug. 9, 2018July 25, 2019
adopted Bay-Delta and WaterFix project policy principles, including the following: a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once,
and a single-user tunnel Bay-Delta project.
a.b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for a single-tunnel Bay-Delta project is expressly the WaterFix project, as currently proposed, conditioned upon the project costs being characterized by the Department of
Water Resources (DWR) MWD properly allocating the costs of the project as
conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD)’s SWP contract with DWR. b.c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and Computation Used to Determine Water Charges, and for which costs are recovered in
Article 22(a) of Delta Water Charge of the Current MWD’s SWP Contract; allow for
the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on the WaterFix project implementation progress, including expenditure tracking, construction progress, project participants’ contributions, and all other
relevant activities and developments. 3. Allow access to all SWP facilities, including WaterFix project facilities, to facilitate water transfers. B. Metropolitan Water District
Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act.
1.3.Require MWD to refund or credit to its member agencies revenues collected from them that
result in reserve balances greater than the maximum reserve levels established pursuant to state legislation.
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2.4.Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member
agencies from year to year, in a publicly transparent manner. 3.5.Amend the Metropolitans Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act.
C. Colorado River
Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program
2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration solutions, in the form of the Salton Sea Management Program consistent with its obligations under
Chapters 611, 612, and 613 of the Statutes of 2003.
4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to the amount committed in accordance with the original QSA legislation. 4. Revise the Quantification Settlement Agreement mitigation measures for the Salton Sea to limit the costs imposed on the funding parties to the amount committed in accordance with the
QSA legislation.
5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through the development of storage, including Lake Mead, and through the renegotiation of the new
interim shortage guidelines for continued operation of the River.
7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance routes as a model of the Governor’s Water Resilience Portfolio approach to water
management. 6.8.Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017. 7.9.Preserve the California Colorado River Board
8.10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 9. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide
enhanced flexibility with annual transfer volumes, support drought contingency planning, and
align with the Governor’s Water Resilience Portfolio approach to water management. Oppose initiatives that:
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1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement.
2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project
Support initiatives that: 1. Provide for development of a comprehensive state water plan that balances California's competing water needs and results in a reliable and affordable supply of high-quality water for the San Diego region.
Oppose initiatives that: 1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental
integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban agencies to transfer and/or bank CVP water for use both within and outside the CVP service area.
3. Transfer operational control of the State Water Project or any of its facilities to MWD, the
State Water Project contractors, Central Valley Project contractors, the State and Federal
Contractors Water Agency, any entity comprised of MWD or other water project contractors,
or any other special interest group.
XVI. Optimize District Effectiveness
Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that
save ratepayers money. 3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. 6. Result in predictable costs and benefits for employees and taxpayers.
7. Eliminate abuses. 8. Retain local control of pension systems. 9. Are Be constitutional, federally legal, and technically possible.
Oppose initiatives that:
1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations.
4. Balance the state budget by allowing regulatory agencies to increase permitting fees.
5. Tax dependent benefits.
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6. Require new reporting criteria on energy intensity involved in water supply.
VII. Water Recycling and Potable Reuse
Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use.
3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related
project permitting.
7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects.
11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including
Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges.
13. Create federal and state incentives to promote recycled water use and production.
14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration,
program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using
recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water. 18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply.
20. Define purified recycled water as a source of water supply and not as waste.
21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation.
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22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse.
23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply.
25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse and recycled water systems.
Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to
the sewer collection system that may adversely affect water recycling and reuse.
4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation.
XIVIII. Safety, Security, and Information Technology
Support initiatives that: 1. Provide funding for information security upgrades to include integrated alarms, access/egress,
and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other technological enhancements.
4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts of destruction, contamination, or degradation.
7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats and/or population. 9. Encourage or promote compatible communication systems. 10. Encourage and promote funding of Department of Homeland Security Risk Mitigation
programs.
11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and mitigate loss or impairment of life, health, property, or essential public services due to natural
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disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities.
12. Provide state grant or other funding opportunities to support seismic risk assessment and
mitigation plans, or to mitigate vulnerabilities. 13. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations.
13.15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services. Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates.
2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents, potentially compromising public water systems, and creating a conflict with the Department of Homeland Security’s recommendation to avoid reference to water system details in plans available to the general public.
XII. Water Quality Issues
Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted
groundwater and surface water.
2. Incorporate sound scientific principals in adopting drinking water standards for drinking water concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water.
4. Establish appropriate quality standards, testing procedures, and treatment processes for
emerging contaminants. 5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act.
7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems. 8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and
environmental cleanup related to contamination drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts.
12. Direct the state’s participation or assistance in water quality issues related to or threatening
the Colorado River water source. 13. Streamline permitting of facilities constructed for the purpose of improving water quality.
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14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards.
Oppose initiatives that: 1. Eliminate the State Water Resources Control Board and/or the nine regional water quality control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity.
XIII. Water Recycling and Potable Reuse Support initiatives that:
1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable use. 3. Advocate for direct potable reuse.
4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water
runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water. 6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting.
7. Promote recycled water as a sustainable supplemental source of water.
8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling. 10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including
Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and
Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply challenges. 13. Create federal and state incentives to promote recycled water use and production.
14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water. 15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to
encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water. 17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas
served by recycled water.
18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings. 19. Recognize and support the development of potable reuse as a critical new water supply.
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20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and
brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development of potable reuse and non-potable reuse as a municipal water supply. 25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly
including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems. 26. Encourage dual plumbing in new development where non-potable recycled water is likely to available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards.
28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water
systems. Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge.
2. Establish new water or recycled water fees solely to recover State costs without also
providing some benefit. 3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water,
which may unreasonably impede or create a disincentive to its further development.
5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. IXIV. Water Services and Facilities
Support initiatives that: 1. Provide funding to implement actions identified in the California Water Action Plan to lay a solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation,
flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region. 2. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3. Promote the coordination and integration of local, state, and federal climate change policies
and practices to the greatest extent feasible.
4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement. 5. Provide reliable water supplies to meet California’s short and long-term needs.
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6. Promote desalination pilot studies and projects. 7. Encourage feasibility studies of water resource initiatives.
8. Increase funding for infrastructure and grant programs for construction, modernization or
expansion of water, wastewater treatment, reclamation facilities and sewer systems including water recycling, groundwater recovery and recharge, surface water development projects and seawater desalination. 9. Fund enhancements to water treatment, recycling, and other facilities to meet increased
regulations.
10. Mandate uniform or similar regulations and procedures by state agencies in the processing and administering of grants and programs. 11. Streamline grant application procedures. 12. Reduce regulations and other impediments for willing sellers and buyers to engage in water
transfer agreements.
13. Promote or assist voluntary water transfers between willing buyers and willing sellers and move those transactions through without delay. 14. Streamline the permitting and approval process for desalination and other water-related facilities and implementing water transfers that will improve water management.
15. Establish reasonable statewide approaches to sewer reporting standards. 16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in programs for source water protection without lessening the focus on public health of the state’s Drinking Water Program. 17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water
Program. 18. Establish federal tax incentives to support U.S. companies in the development of new desalination technologies that can lower productions costs, eliminate or reduce impingement or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19. Establish a comprehensive national research and development, and technology demonstration
program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply. 20. Require the State Water Resources Control Board to exercise its authority, ensure robust funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID
water transfers. 21. Support solutions to water supply issues that address common challenges, provide a comprehensive approach that is fair to all users, balance the needs of urban and rural communities, and take into consideration the interests of all stakeholders as well as the impact to the environment.
22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 23. Provide funding for water infrastructure development, infrastructure security, and
rehabilitation and replacement projects that benefit ratepayers. 24. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities.
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25. Provide funding for projects that enhance security against terrorist acts or other criminal threats to water operation, services, facilities, or supplies.
26. Provide incentives that encourage contractors to recycle or reduce waste associated with
construction of water facilities. 27. Improve the local agencies’ efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to local agencies and the District.
28. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29. Encourage the use of current and emerging technologies for monitoring and assessing the condition of large diameter pipelines. 30. Encourage water supplier to develop and execute asset management programs that include
visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 31. Improve the District’s efforts to maintain and protect its property, rights of way, easements, pipelines, and related facilities and minimizes liability to the District.
32. Protect the District, other agencies and the Water Authority properties from restrictions when
surrounding properties are incorporated into preservation areas. 33. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation of chlorine. 34.
28. Provide funding for water supplier asset management programs that involve the active
monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 35. Provide for restrictions on price gouging during public safety power shutoff events and for at least 72 hours following restoration of power.
36. Provide that de-energization or public safety power shutoff events may be included as a
condition constituting a state of emergency or local emergency. 37. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity of local government during a de-energization or public safety power shutoff event.
38. State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 39. Provide financial support to local projects designed to mitigate or adapt to potential negative impacts of climate change on water supply reliability.
40. Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that:
1. Restrict local control and discretions over water facilities, asset management, and facility
operations. 1.2.Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water.
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2.3.Create unrealistic or costly water testing or reporting protocol. 3.4.Disproportionately apportion the cost of water.
4.5.Create undo hurtles for seawater desalination projects. 5.6.Create unreasonable or confusing sewer reporting standards. 6.7.Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 7.8.Create a broad-based user fee that does not support a specific local program activity or
benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water supplies from the establishment that charge or fee would provide. 8.9.Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 9.10. Change the focus of the state’s Drinking Water Program or weaken the parts of the
program that work well. 10.11. Lessen the focus on public health of the state’s Drinking Water Program. 11. Create one-size-fit-all approaches to emergency drought regulations that ignore variations among communities, regions, and counties with respect to their ability to withstand the impact and effects of drought.
12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement. 14. Impairs the District and other local water agencies’ ability to provide and operate the
necessary facilities for a safe, reliable, and operational flexible water system.
15. Limits local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities. 16. Restricts local agencies’ ability to respond swiftly and decisively to an emergency that threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in
emergencies for repairs or preventive maintenance.
17. Authorizes state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies. 18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of any water, wastewater, or recycling facility and resource investments.
19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20. Shift the risks of indemnity for damages and defense of claims from contractors to the District. 21. Impair the local agencies’ efforts to acquire property or property interests required for
essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22. Increase the cost of property and right of way acquisition. 23. Restrict the local agencies’ District’s use of public rights of way or increase the cost of using public rights of way.
24. Restrict the transfer of property acquired for purposes of environmental mitigation or
environmental mitigation credits to other public or private entities for long-term management.
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25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset management of water conveyance and distribution systems, that fail to consider full life-cycle
costing. 26. Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness. 27. Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and
useful life. 28. Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29. Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset
condition assessments, and corrosion mitigation in a manner that recognizes the individuality and uniqueness of each water supplier and its systems. 30. Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power
shutoff event.
31. Require incorporation of climate change considerations into regional and local water
management planning that does not provide flexibility to the local and regional water agencies
in determining the climate change impact and identification of adaptation and mitigation
measures.
32. Impose top-down “one-size-fits-all” climate change mandates that fail to account for
hydrological, meteorological, economic, and social variation across the state and/or that fail to
incorporate local and regional planning and implementation priorities and protocols.
XV. Water-Use Efficiency
Support initiatives that:
1. Provide funding for incentives for water-use efficiency and water conservation programs including water-efficient devices, practices and demonstration projects and studies. 2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3. Promote the environmental benefits of water-use efficiency and water conservation.
4. Enhance efforts to promote water-use efficiency awareness.
5. Offer incentives for landscape water-efficient devices including, but not limited to ET controllers and soil moisture sensors. 6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7. Permit or require local agencies to adopt ordinances that require or promote water-efficient
landscapes for commercial and residential developments.
8. Create tax incentives for citizens or developers who install water-efficient landscapes. 9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush and high-efficiency toilets, and irrigation controllers above the state standards. 10. Expand community-based water-use efficiency and education programs.
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11. Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation.
11.12. Develop incentives for developers and existing customers to install water-efficient landscape in existing developments or new construction. 12.13. Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 13.14. Encourage large state water users to save water outdoors.
14.15. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs. 15.16. Encourage technological research targeted to more efficient water use. 16.17. Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve.
17.18. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program. 19. Restrict Property Owners Associations from forbidding the use of California native plants, other low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes.
20. Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for
the purpose of submetering, if feasible. 21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water efficient devices. 18.22. Establish standards for the utilization of high-efficiency commercial coin-operated and
residential clothes washers.
19.23. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with income tax treatment at the state level. 20.24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective.
21.25. Provide incentives, funding, and assistance to water agencies so that they can meet the
water demand management measure requirements in the Urban Water Management Planning Act. 26. Provide incentives, funding, and other assistance to facilitate water-use efficiency partnerships with the energy efficiency sector.
22.27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices. 23.28. Recognize local control in determining water use efficiency criteria, such as impact of recycled water salinity on irrigation use and efficiency for the application of non-potable
recycled water. 24. Recognize local control in determining how to meet an overall efficient water-use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 25.29. Encourage reasonable tracking of water use and improved efficiency in the
Commercial, Industrial, and Institutional (CII) sector.
26.30. Recognize local control in determining how to meet an overall efficient water use goal, based on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute.
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31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and
options for achieving this objective. 32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 27.33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act.
Oppose efforts that: 1. Weaken federal or state water-efficiency standards. 2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers, yet yield no water savings.
3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. 6. Create stranded assets by establishing long-term demand management water-use efficiency
and water supply requirements that are inconsistent with the Urban Water Management Planning Act. 7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of
directors of local water agencies to adopt management practices that are most appropriate for the specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector.
9. Mandate that water agencies include an embedded energy calculation for their water supply
sources in the Urban Water Management Plan or any other water resource planning or master planning document. XVI. Workforce Development
Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce
and increase the talent pool for water agencies.
2. Advocate for military veterans in the water industry workforce to ensure that veterans receive
appropriate and satisfactory credit towards water and wastewater treatment system
certifications in California for work experience, education, and knowledge gained in military
service.
3. Lower employment barriers for military veterans and transitioning military and that sustain
vital water and wastewater services for the next generation.
4. Recruit and support veterans and transitioning military through internships, cooperative work
experiences, and other resources.
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5. Recruit and support underserved communities in the water industry through internships,
cooperative work experiences, and other resources.
6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job
categories in water and wastewater.
7. Ensure advanced water treatment operators and distribution system operators of potable reuse
and recycled water facilities have a career advancement path as certified water and/or
wastewater treatment plant operators.
8. Increase the number of educational institutions that provide water-industry related training
and related program criteria including but not limited to trades, certifications, and degrees.
9. Increase the talent pool of future water industry workers through educational programs,
internships, and other resources.
10. Provide funding to educational institutions, water agencies, and workforce students regarding
careers in the water industry.
11. Develop qualified candidates for positions in the water industry.
12. Build awareness of water industry-related jobs through student outreach including but not
limited to K-12, community colleges, universities, and other educational institutions as well as
outreach to the general public.
Oppose initiatives that:
1. Hinder military veterans from using previous experience, education, and knowledge toward a career in water. 1.2.Regulate agencies from hiring an experienced, educated, and talented water-industry workforce.
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Effective Date: 04/07/2021
Legislative Program Policy Guidelines
Purpose
The Otay Water District’s legislative policy guidelines reflect policy positions adopted by the Board of Directors through 2021. The guidelines provide direction to staff and the legislative advocates when they evaluate proposed legislation that may affect the District, other local water agencies, or regional water management and use. Legislation that meets or fails to meet, the principles set forth in
the guidelines may be supported or opposed accordingly. The guidelines permit the General Manager,
District staff, and the District’s legislative advocates to act in a timely fashion between Board meetings on issues that are clearly within the guidelines.
While the title of this document suggests these policy guidelines are applicable solely to state and
federal legislative issues reviewed by the San Diego County Water Authority (Water Authority), the
District and other state and other local water agencies, increasingly state and federal regulatory and administrative bodies are developing rules, guidelines, white papers, and regulations that can significantly affect the District, its wholesale supplier, and other local agencies. District staff, including the District’s legislative team, often utilize these Legislative Policy Guidelines to provide
guidance on emerging and active regulatory and administrative issues.
Legislation that does not meet the principles set forth in the guidelines or that has potentially complicated or varied implications will not be acted upon by staff or the legislative advocates in between Board meetings and will instead be presented to the Board directly for guidance in advance
of any position being taken.
The Water Authority has its own set of legislative guidelines that is a comprehensive program at a wholesale and regional level. District staff has evaluated and selected policies and issues from the Water Authority’s guidelines that may have a direct impact on the District. These policies and issues
have been incorporated into the District’s guidelines. Although the District is a retail agency and is
focused on its local service area, if there are issues or polices contained in the Water Authority’s Legislative Policy Guidelines that could benefit or impact the District, the General Manager, District staff, and the District’s legislative advocates may act on those issues, respectively.
Attachment C
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Table of Contents
The Otay Water Legislative Policy Program Guidelines for 2021 includes the following categories: I. Binational Issues…………………………………………....……………... Page 3 II. Biological and Habitat Preservation…………………………………….. Page 3
III. Desalination……………………………………………………………….. Page 4 IV. Drought Response………………………………………………………… Page 4
V. Energy……………………………………………………………………… Page 5 VI. Financial Issues…………………………………………………………… Page 6 A. Fees, Taxes, and Charges………………………….......................... Page 6 B. Funding…………………………………………………………….. Page 8
C. Rates………………………………………………………………... Page 10
D. Water Bonds……………………………………………………….. Page 10 VII. Governance and Local Autonomy……………………………………….. Page 11
VIII. Imported Water Issues……………………………………………………. Page 13 A. Bay-Delta……………………………………………………………… Page 13 i. Co-equal Goals……………………………………………………. Page 13 ii. Bay-Delta Conveyance Project…………………………………… Page 13 B. Metropolitan Water District…………………………………………… Page 14
C. Colorado River………………………………………………………… Page 14 D. State Water Project…………………………………………………….. Page 15 IX. Optimize District Effectiveness……………………...…………....………. Page 16
X. Safety, Security, and Information Technology……………....................... Page 16 XI. Water Quality Issues………………………………………………………. Page 17 XII. Water Recycling and Potable Reuse……………………………………… Page 18
XIII. Water Service and Facilities……………………………………………… Page 19 XIV. Water-Use Efficiency……………………………………………………… Page 23
XV. Workforce Development………………………………………………….. Page 25
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I. Binational Issues
Support initiatives that:
1. Promote and provide funding for cross-border water supply and infrastructure development projects such as water pipelines, desalination plants or water treatment facilities to serve the San Diego/Baja California border region while protecting local interests. 2. Encourage enhanced cooperation between entities in San Diego and Baja California in
development of supply and infrastructure projects that will benefit the entire border region.
3. Encourage state and federal funding to support collaborative binational projects to improve water quality and protect human health and the environment within the broader San Diego region. 4. Develop and enhance communications and understanding of the interdependence of
communities on both sides of the border with the goal of improved cross-border cooperation.
Oppose initiatives that: 1. Would usurp local control over the financing and construction of water supply and
infrastructure projects in the San Diego/Baja California region.
II. Biological and Habitat Preservation
Support initiatives that: 1. Support development of comprehensive multispecies habitat conservation plants that anticipate and mitigate project development impacts while preserving representative ecosystem, rather than individual species. 2. Exempt operation, maintenance, ad repair of water system facilities from endangered species
and other habitat conservation regulations because they provide beneficial cyclical habitat values to declining species and foster biological diversity in California. 3. Provide environmental regulatory certainty for implementation of existing and proposed long-term water supply programs. 4. Streamline filing of CEQA notices of determination for multicounty water projects by making
those notices available on the CEQAnet website through the Governor’s office of Planning and Research. 5. Incorporate an emergency exemption for “take” of a listed species listed under the state or federal Endangered Species Acts when necessary to mitigate or prevent loss of or damage to life, health, property, or essential public services.
6. Encourage species listings, critical habitat designation, and recovery plans developed pursuant to the state or federal Endangered Species Acts to be consistent with existing interstate compacts, tribal treaties, and other state and federal agreements. Oppose initiatives that:
1. Reduce or limit the use of existing water rights or supplies,
2. Restrict the development of future water supplies.
3. Impose endangered species or habitat conservation requirements that restrict the operation,
maintenance, or repair of public water supply, conveyance, treatment, or storage facilities.
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III. Desalination
Support initiatives that:
1. Provide funding for seawater desalination studies and facilities. 2. Recognize and support the development of seawater desalination as critical new water supply for the state, including San Diego County. 3. Streamline permitting of desalination facilities.
4. Preserve and protects potential seawater desalination sites and existing coastal facilities
including intake and discharge infrastructure that could be used or reused by a seawater desalination facility. 5. Ensure that desalination intake and discharge regulations are science-based, considering site-specific conditions, and recognizing that not all technologies or mitigation strategies are
feasible or cost-effective at every site.
IV. Drought Response
Support initiatives that:
1. Ensure the District and other local agencies including the Water Authority and San Diego
County water agencies receive the water supply benefits of its investment in local water
supply sources.
2. Allow local agencies to achieve compliance with emergency or non-emergency drought
regulations or objectives through a combination of water conservation measures and
development and implementation of local water supply sources that are not derived from the
Delta.
3. Allow for local agencies to account for all water supplies available during droughts and other
events when calculating the water supply shortage level.
4. Create a process for development and implementation of emergency drought declarations and
regulations that recognizes variations among communities, regions, and counties with respect
to their abilities to withstand the impacts and effects of drought.
5. Recognize variations among communities, regions, and counties with respect to their abilities
to withstand the impacts and effects of droughts and ensure that any temporary or permanent
statutory or regulatory direction for improving water-use efficiency to meet statutory or
regulatory goals or standards is focused on regional achievement of objectives rather than a
one-size-fits-all approach.
Oppose initiatives that: 1. Disincentivize or impede water agencies from making investments to maximize the potential
for recycled water, potable reuse, desalination, and other drought-resilient local water
supplies.
2. Create a “one-size-fits-all” approach to emergency drought declarations and regulations that
ignores variations among communities, regions, and counties with respect to their ability to
withstand the impacts and effects of drought.
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V. Energy
Support initiatives that:
1. Provide opportunities for reduced energy rates under tariff schedules for the District.
2. Provide protection to the District from energy rate increases and provides rate relief for the
District.
3. Provide funding, including state and federal grants, for in-line hydro-electric, solar, wind,
battery storage, biogas, cogeneration, nanogrids, microgrids, closed-loop pumped storage
facilities and other renewable energy generation or storage technology as means of reducing
greenhouse gas emissions and energy cost.
4. Promote funding for use of renewable energy in the operation of District facilities.
5. Prohibit investor-owned utilities from implementing rate changes that undercut the financial
viability of renewable energy facilities obligated under long-term Power Purchase
Agreements.
6. Provide greater flexibility in the utilization of the District’s facilities for generation and
acquisition of electrical and natural gas power.
7. Provide the District with greater flexibility in the licensing, permitting, interconnection,
construction, and the operation of its existing and potential in-line hydroelectric, solar, wind,
battery, nanogrid, microgrid, closed-loop pumped-energy storage projects, and other
renewable generation or storage technology.
8. Make SWP power available for all water projects.
9. Promote the classification of electricity generated by in-line hydroelectric and closed-loop
pumped-energy storage facilities as environmentally sound.
10. Promote the expansion of closed-loop pumped-energy storage facilities to provide clean and
environmentally sound energy resource that provides electric and reliability and resiliency,
especially during times of potential blackouts.
11. Promote the expansion of in-line hydroelectric energy recovery systems at treatment facility
discharge systems.
12. Promote the production, purchase, delivery, and use of alternative sources of energy on a
wholesale basis.
13. Provide clear statutory, regulatory, or administrative authority for the San Diego County
Water Authority to wheel acquired or produced power to itself, the District, or entities with
which the Water Authority is under contract for the purchase, treatment, transport, or
production of water.
14. Recognize all grid services that energy storage provides and supports fair compensation in the
wholesale energy market for such services.
15. Provides timely, efficient, and cost-effective interconnection of new energy resources such as
solar, inline hydroelectric, pumped-energy storage, and other renewable energy generation or
storage technologies to the electric distribution and transmission grid.
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16. Recognize the value of large-scale hydropower and pumped-energy storage facilities in
assisting the state to meet its renewable and zero-carbon emission goals of 100 percent by
2045.
Oppose initiatives that:
1. Adversely affect the cost of energy needed to operate MWD’s facilities, SWP facilities, or the
facilities of the Water Authority and the District.
2. Impose greenhouse gas reduction obligations on a public water agency for electricity
purchased or produced for the sole purpose of operating its system.
3. Adversely affect the ability of the District or other water agencies in the county to own,
operate, and/or construct work for supplying its own facilities with natural gas and electricity.
4. Impede the District or other water agencies in the county, the ability to contract for, deliver,
and use the purchase of natural gas and electricity from the United States, the State of
California, and any other public agency or private entity and sell the gas and electricity to any
public agency or private entity engaged in retail sales of electricity and gas.
5. Reduce the District’s ability to always maintain high operational efficiency.
6. Restrict the District’s ability to expand or improve infrastructure or facilities.
7. Restrict or caps future energy demands needed for possible expansion of recycled water,
potable reuse, and desalination projects.
8. Adversely affect the District’s ability to expand cogeneration or polygeneration at planned or
existing facilities.
9. Inhibit the scientific advancement of energy and water efficient/conserving technologies that
may be implemented at the District or other agency facilities.
10. Prevent the District from enhancing energy reliability and independence for its facilities.
11. Do not count or credit qualified renewable energy projects toward accomplishment and
satisfaction of the California Renewables Portfolio Standard objectives.
12. Prohibit the Water Authority from wheeling - or securing statutory, regulatory, or
administrative authority necessary to wheel - acquired or produced power to itself, the
District, or other entities with which the Water Authority is under contract of the purchase,
treatment, transport, or production of water.
13. Result in a lengthy, more complicated, or more costly interconnection of new energy
resources, such as solar, inline-hydroelectric, pumped-energy storage, and other renewable
energy generation or storage technologies to the electric distribution and transmission grid.
VI. Financial Issues
A. Fees, Taxes, and Charges
Support initiatives that:
1. Require the federal government and State of California to reimburse special districts for all mandated costs or regulatory actions.
2. Give special districts the discretion to cease performance of unfunded mandates.
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3. Provide for fiscal reform to enhance the equity, reliability, and certainty of special district funding.
4. Provide incentives for local agencies to work cooperatively, share costs or resources.
5. Provide for the stable, equitable and reliable allocation of property taxes. 6. Continue to reform workers compensation. 7. Promote competition in insurance underwriting for public agencies. 8. Produce tangible results, such as water supply reliability or water quality improvement.
9. Require the Metropolitan Water District of Southern California (MWD) to refund or credit
to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. Oppose initiatives that:
1. Impose mandated costs or regulatory constraints on local agencies and their customers
without providing subventions to reimburse local agencies for such costs. 2. Pre-empt the Water Authority’s or its member agencies’ ability to impose or change rates, charges, fees, or assessments. 3. Weaken the protections afforded the Water Authority or its member agencies under
California’s Proposition 1A (November 2, 2004).
4. Reallocate special districts reserves in an effort to balance the state budget. 5. Reallocate special district revenues or reserves to fund infrastructure improvements or other activities in cities or counties. 6. Establish funding mechanisms that put undue burdens on local agencies or make local
agencies de facto tax collectors for the state.
7. Adversely affect the cost of gas and electricity or reduce an organization’s flexibility to take advantage of low peak cost periods. 8. Add new reporting criteria, burdensome, unnecessary, or costly reporting mandates to Urban Water Management Plans.
9. Add new mandates to the Department of Water Resources (DWR) to review and approve
Urban Water Management Plans beyond those already addressed in DWR guidelines. 10. Mandate that water agencies include an embedded energy calculation for their water supply sources in Urban Water Management Plans or any other water resources planning or master-planning document.
11. Weaken existing project retention and withholding provisions that limit the ability of
public agencies to drive contractor performance. 12. Establish change order requirements that place an unreasonable burden on local agencies, or raise financial risk associated with public works contracts. 13. Impair the San Diego County Water Authority or its member agencies’ ability to provide
reasonable service at reasonable costs to member agencies or to charge all member
agencies the same rate for each class of service consistent with cost-of-service requirements of the law. 14. Impair the local water agencies’ ability to maintain reasonable reserve funds and obtain and retain reasonable rates of return on its reserve accounts.
15. Mandate a specific rate structure for retail water agencies.
16. Impose a water user fee on water agencies or water users that does not provide a commensurate and directly linked benefit in the local area or region from which the water user fee is collected.
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17. Impose a water user fee for statewide projects or programs, for which the projects or programs are not clearly defined, the beneficiaries identified, and reasonable costs
identified.
18. Impose a water user fee in order to create a state fund that can be used to finance undefined future projects and programs. 19. Allow the state to retain more than five percent of water user fees for administrative costs. 20. Do not restrict the use of water user fees to only the specific purposes for which they are
imposed, without any possibility of diversion to meet other fiscal needs of the state.
21. Impose a “public goods charge” or “water tax” on public water agencies or their ratepayers. 22. Impose a fee on water users to repay the principal and interest on a statewide general obligation bond.
23. Establish regulatory or permit fees that lack a nexus to the costs of oversight.
24. Establish a broad-based user fee that does not support a specific program activity; any fee must provide a clear nexus to the benefit the fee would provide. B. Funding
Support initiatives that:
1. Require the federal and state governments to provide subvention to reimburse local governments for all mandated costs or regulatory actions. 2. Provide the Water Authority and its member agencies with additional forms of cost-
effective financing for public facilities.
3. Revitalize the Title XVI federal funding program by converting new authorizations to a
competitive grant program with congressional oversight while protecting existing Title
XVI authorizations for the San Diego region.
4. Provide the Water Authority and its member agencies with grant funding for public
facilities.
5. Provide the District, other local water agencies, and water ratepayers with post-COVID-19
financial relief through a variety of means, including but not limited to, direct financial
assistance and flexibility in debt management to assist water ratepayers and water
suppliers.
6. Authorize financing of water quality, water security, and water supply infrastructure
improvement programs.
7. Establish spending caps on State of California overhead when administering voter
approved grant and disbursement programs.
8. Require disbursement decisions in a manner appropriate to the service in question.
9. Encourage funding infrastructure programs that are currently in place and that have been
proven effective.
10. Provide financial incentives for energy projects that increase reliability, diversity, and
reduce greenhouse gasses. 11. Continue energy rate incentives for the utilization of electricity during low-peak periods.
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12. Provide loan or grant programs that encourage water conservation for water users who are least able to pay for capital projects.
13. Provide for population-based distribution of IRWM funds to ensure adequate distribution
of grant funding throughout the state. 14. Provide for the use of state grant funds for binational projects where the projects benefit water supply or water quality in the San Diego region. 15. Improve and streamline the state’s reimbursement process to ensure timely remittance of
IRWM funds.
16. Promote the ability of the Regional Water Management Group to more directly administer state grant funds specifically identified for IRWM Programs. 17. Require the state to rely on the local process for selection and ranking of projects included in an approved IRWM plan.
18. Provide funding or other incentives for conservation, peak management programs, water
recycling, potable reuse, groundwater recovery and recharge, surface water development and management projects, including reservoir management, source water protection and watershed planning studies and facilities that sustain long-term reliable water resources. 19. Provide financial incentives to assist in the disposal of concentrate, sludge, and other
byproducts created in the water treatment process.
20. Authorize, promote, and provide incentives or credits for development of local drought-resilient water supply projects such as desalination, non-potable recycling, and potable reuse projects. 21. Provide funding for potable reuse demonstration projects and studies.
22. Authorize federal and state funding to develop and implement regional or subregional
conservation programs, including but not limited to property acquisition, revegetation programs, and watershed plans. 23. Provide state and/or federal funding for the restoration of the Salton Sea. 24. Provide federal and/or state funding to implement actions that address the ecological and
water supply management issues of the Lower Colorado River from Lee's Ferry to the
southerly international border with Mexico. 25. Provide federal and/or state funding to implement actions that address the ecological and water supply management issues of the Sacramento-San Joaquin River Delta. 26. Permit the use of grant funding for projects implemented under public-private partnerships
where the grant provides funding for a public benefit.
27. Require the state agencies responsible for preparing the IRWM grant program guidelines to conduct a comprehensive public outreach process that ensures stakeholders have an opportunity to provide adequate input on preparation of the guidelines and that the state agencies consider and respond to comments received through the outreach process.
Oppose initiatives that: 1. Impose additional administrative requirements and/or restrict the Water Authority’s or its member agencies’ ability to finance public facilities through the issuance of long-term debt.
2. Interfere with the responsibility of a region, operating under an Integrated Regional Water
Management Plan, for setting priorities and generating projects to be paid from any IRWM accounts and grants.
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3. Interfere with the control exercised by the San Diego funding subregion over the use and expenditure of any water-user fee revenues that may be dedicated to the region.
4. Establish IRWM funding criteria that limits local discretion in project selection.
5. Provide for after-the-fact reduction in quantity or quality of a public water supply due to new restrictions on the operation or use of water supply facilities unless funding for alternate sources of water is provided. 6. Impose a "utility user fee" or "surcharge" on water for the purposes of financing open
space/habitat preservation, restoration, or creation. C. Rates
Support initiatives that:
1. Maintain the authority of water agencies to establish water rates locally, consistent with
cost-of-service requirements of the law.
2. Maximize the ability of water agencies to design rate structures to meet local water supply goals and that conform to cost-of-service requirements of the law. Oppose initiatives that:
1. Impair the Water Authority’s or its member agencies’ ability to provide reliable service at
reasonable costs to member agencies or to charge all member agencies the same or similar rate for each class of service consistent with cost-of-service requirements of the law. 2. Undermine or weaken cost-of-service rate-making requirements in existing law. 3. Impair the District’s ability to maintain reasonable reserve funds and obtain and retain
reasonable rates of return on its reserve accounts.
4. Mandate a specific rate structure for retail water agencies. 5. Prescribe mandatory conservation-based rate structures that override the authority of the boards of directors of local water agencies to set rate structures according to the specific needs of the water agencies.
6. Usurp special district funds, reserves, or other state actions that force special districts to
raise rates, fees, or charges. D. Water Bonds
Support initiatives that:
1. Provide an equitable share of funding to San Diego County, with major funding categories being divided by county and funded on a per-capita basis to ensure bond proceeds are distributed throughout the state in proportion to taxpayers’ payments on the bonds. 2. Focus on statewide priorities, including restoration of fish and wildlife habitat,
construction of an improved method of conveyance of water through or around the Delta
that provides water supply reliability to Delta water users, promotion of greater regional and local self-sufficiency, surface storage, and promotion of water-use efficiency. 3. Ensures funding from various propositions for local and regional water-related projects. 4. Include within IRWM funding money that a region may use over time to develop and
refine its plan and to develop institutional structures necessary to establish and implement
the plan.
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5. Give primary consideration to funding priorities established by local and regional entities through their IRWM planning process.
6. Ensure the application process for funding is not unnecessarily burdensome and costly,
with an emphasis on streamlining the process. 7. Limit state overhead to no more than five percent of bond funding amounts. 8. Place as much emphasis and provides at least as much funding for surface storage as for groundwater storage.
9. Define the “San Diego sub-region” and “San Diego county watersheds” as “those portions
of the westward-flowing watershed of the South Coast hydrologic region situated within the boundaries of San Diego County.” 10. Fund emergency and carryover storage projects including those in San Diego County. 11. Consolidate administration of all voter-approved water-related bond funding in one place,
preserves existing expertise within the state bureaucracy to manage bond-funding
processes, and provide consistent application and evaluation of bond funding applications. 12. Provide the state’s share of funding for projects that advance the achievement of the co-equal goals of water supply reliability and Delta ecosystem restoration. 13. Provide funding for water infrastructure that resolve conflicts in the state’s water system
and provide long-term benefits to statewide issues including water supply, reliability,
water quality, and ecosystem restoration. Oppose initiatives that: 1. Do not provide an equitable share of funding to San Diego County based on the San
Diego County taxpayers’ proportional contribution to repayment of the bonds.
2. Do not provide funding for infrastructure that resolves statewide or regional conflicts of water supplies. 3. Do not provide funding that result in net increases in real water supply and water supply reliability.
4. Commit a significant portion of bond funding to projects that do not result in net increases
in real water supply or water supply reliability. VII. Governance/Local Autonomy
Support initiatives that:
1. Expand local autonomy in governing special district affairs. 2. Promote comprehensive long-range planning. 3. Assist local agencies in the logical and efficient extension of services and facilities to promote efficiency and avoid duplication of services.
4. Streamline the Municipal Service Review Process or set limits on how long services reviews
can take or cost. 5. Reaffirm the existing “all-in” financial structure or protect the Water Authority voting structure based on population. 6. Promote measures that increase broader community and water industry
representation/appointments on State decision making bodies.
7. Ensure an open and transparent process for adoption of regulations, policies, and guidelines. 8. Preserve the District and other local water agencies’ ability to establish local priorities for water resources planning decisions.
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Oppose initiatives that:
1. Assume the state legislature is better able to make local decisions that affect special district
governance. 2. Create one-size-fits-all approaches to special district reform. 3. Unfairly target one group of local elected officials. 4. Usurp local control from special districts regarding decisions involving local special district
finance, operations, or governance.
5. Diminish the power or rights of the District’s governing body to govern the District’s affairs. 6. Diminish the power or rights of the District to govern relations with its employees. 7. Modify the committee or board voting structure or District and member agency board representation on the Water Authority Board of Directors unless such changes have been
expressly authorized by the District’s Board.
8. Create unfunded local government mandates. 9. Create costly, unnecessary, or duplicative oversight roles for the state government of special district affairs. 10. Create new oversight roles or responsibility for monitoring special district affairs.
11. Change the San Diego County Water Authority Act regarding voting structure unless it is
based on population. 12. Shift the liability to the public entity and relieve private entities of reasonable due diligence in their review of plans and specifications for errors, omissions, and other issues. 13. Place a significant and unreasonable burden on public agencies, resulting in increased cost for
public works construction or their operation.
14. Impair the ability of water districts to acquire property or property interests required for essential capital improvement projects. 15. Increase the cost of property and right-of-way acquisition or restricts the use of right-of-ways. 16. Work to silence the voices of special districts and other local government associations on
statewide ballot measures impacting local government policies and practices, including
actions that could prohibit special districts and associations from advocating for positions on ballot measures by severely restricting the private resources used to fund those activities. 17. Prescribe mandatory conservation-based or other rate structures that override the authority of the board of directors to set its rate structure.
18. Circumvent the legislative committee process, such as the use of budget trailer bills, to
advance policy issues including impacting special districts without full disclosure, transparency, or public involvement. 19. Restrict the District’s ability to utilize a demand forecasting methodology that is best suited locally and for the region.
20. Impose mandates requiring specific water resources be developed by water agencies that fail
to consider local factors such as water reliability, hydrologic and geographic characteristics, and the economic, political, public acceptance, social environment, which can influence selection of resources and/or fails to consider or conflicts with existing local and regional planning policies and implementation priorities.
21. Limit the District’s ability to establish local priorities for water resources planning decisions.
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VIII. Imported Water Issues A. Bay-Delta
i. Co-Equal Goals
Support initiatives that: 1. Require the Delta Stewardship Council or DWR to provide periodic analyses of the cost of the proposed Delta improvements to the Legislature and the public.
2. Provides conveyance and storage facilities that are cost-effective for the San Diego region’s ratepayers, improve the reliability and quality of the San Diego region’s water supplies, and protect the Bay-Delta’s ecosystem. 3. Continue to support the co-equal goals of water supply reliability and environmental restoration embodied in the 2009 Delta bill package.
4. Improve the ability of water-users to divert water from the Delta during wet periods, when impacts on fish and the ecosystem are lower and water quality is higher. 5. Encourage the development of a statewide water transfer market that will improve water management and allow more efficient use of available resources. 6. Support improved coordination of Central Valley Project and State Water Project (SWP)
operations and implementation of voluntary agreement that are fair to the users of both projects and do not unfairly shift costs to SWP contractors. 7. Support continued state ownership and operation of the SWP, including project facilities, as a public resource. 8. Ensure that any reorganization of the State Water Project, including operations and
management, preserves the ability for non-State Water Project contractors to access the facility for transportation of water to a non-State Water Project contractor. 9. Authorize and appropriate the federal share of funding for the long-term Bay-Delta solution, including for the EcoRestore Program. 10. Provide the ongoing state share of funding for the EcoRestore Program.
11. Provide state funding for aquatic toxicity monitoring in the Bay-Delta. Such legislation should not place a surcharge on water supply exports, nor should it substantively reduce funding for other measures that protect the environment and public health. Oppose efforts that:
1. Impose water user fees to fund ecosystem restoration and other public purpose, nonwater-supply improvements in the Delta that benefit the public at large. 2. Transfer operational control of the State Water Project or any of its facilities to the Metropolitan Water District of Southern California (MWD), the State Water Contractors, the Central Valley Project Contractors, the State and Federal Contractors Water Agency, or any
entity comprised of MWD or other water project contractors, or any other special interest group. ii. Bay-Delta Conveyance Project
Support initiatives that:
1. Are consistent with the Water Authority’s Board of Directors’ July 25, 2019 adopted Bay-Delta project policy principles, including the following:
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a. On April 29, 2019, Governor Newsom signed Executive Order N-10-19, directing the preparation of a water resilience portfolio approach that meets the needs of
California’s communities, economy, and environment through the 21st century, including consideration of multi-benefit approaches that meet multiple needs at once, and a single-user tunnel Bay-Delta project. b. The Water Authority’s Board supports Governor Newsome’s Executive Order N-10-19 and directs staff to inform the Newsome Administration that its support for a
single-tunnel Bay-Delta project is expressly conditioned upon the project costs being characterized by the Department of Water Resources (DWR) as conservation, or supply charges, as similar facilities historically have been defined in the Metropolitan Water District’s (MWD) SWP contract with DWR. c. As reflected in Table 2 of DWR’s Appendix B to Bulletin 132-17, Data and
Computation Used to Determine Water Charges, and for which costs are recovered in Article 22(a) of Delta Water Charge of MWD’s SWP Contract; allow for the exemption of north-of-Delta SWP contractors. 2. Support the establishment of an independent and transparent oversight function to monitor and provide regular updates on project implementation progress, including expenditure
tracking, construction progress, project participants’ contributions, and all other relevant activities and developments. 3. Allow access to all SWP facilities, including project facilities, to facilitate water transfers. B. Metropolitan Water District
Support initiatives that: 1. Provide an appropriate level of accountability and cost control over MWD spending. 2. Protect and safeguard the Water Authority’s Preferential Rights in the Metropolitan Water District Act.
3. Require MWD to refund or credit to its member agencies revenues collected from them that result in reserve balances greater than the maximum reserve levels established pursuant to state legislation. 4. Require MWD to implement actions that advance and support its long-term financial stability, fiscal sustainability, and that moderate fluctuations in rates and charges for its member
agencies from year to year, in a publicly transparent manner. 5. Amend the Metropolitan Water District Act to change voting allocation on its Board of Directors based on a member agency’s total financial contribution to MWD, and in a manner similar to the voting allocation method of the County Water Authority Act.
C. Colorado River
Support initiatives that: 1. Supports implementation and funding of the California Colorado River Water Use Plan, including the Lower Colorado River Multi-Species Conservation Program
2. Provide funding for Colorado River salinity control projects and other water quality management efforts. 3. Provide for state and federal authorizations and appropriations of non-fee-based funds to implement Salton Sea mitigation and the State’s phased approach to restoration in the form of
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the Salton Sea Management Program consistent with its obligations under Chapters 611, 612, and 613 of the Statutes of 2003.
4. Limit the Quantification Settlement Agreement mitigation costs imposed on funding parties to
the amount committed in accordance with the original QSA legislation. 5. Provide a governing structure and/or specified managing office over the state's Salton Sea Management Program to provide guidance and oversight of restoration activities. 6. Support the sustainability of the Colorado River and provide operational flexibility through
the development of storage, including Lake Mead, and through the renegotiation of the new
interim shortage guidelines for continued operation of the River. 7. Allow for the option to create an alternate conveyance route, when technically and financially feasible, for reliable delivery of the Water Authority’s Independent Colorado River water supplies and integration of compatible partnership projects along the proposed conveyance
routes as a model of the Governor’s Water Resilience Portfolio approach to water
management. 8. Support the State’s Salton Sea Management Program under the guidelines of the revised Water Order (Stipulated Order) adopted by the State Water Resources Control Board in November 2017.
9. Preserve the California Colorado River Board
10. Ensure the interests of the members of the California Colorado River Board continue to be addressed in any state government reorganization. 11. Allow for storage of the Water Authority’s Colorado River water supplies to provide enhanced flexibility with annual transfer volumes, support drought contingency planning, and
align with the Governor’s Water Resilience Portfolio approach to water management.
Oppose initiatives that: 1. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to the Quantification Settlement Agreement.
2. Eliminate the California Colorado River Board without providing a comparable structure or forum that ensures the Water Authority's interests in the Colorado River are preserved. D. State Water Project
Support initiatives that:
1. Provide for development of a comprehensive state water plan that balances California's competing water needs and results in a reliable and affordable supply of high-quality water for the San Diego region.
Oppose initiatives that:
1. Make urban water supplies less reliable or substantially increases the cost of imported water without also improving the reliability and/or quality of the water. 2. Revise the Central Valley Project Improvement Act to Jeopardize the Act's environmental integrity, compromise State Water Project supply reliability a n d/or limit the ability of urban
agencies to transfer and/or bank CVP water for use both within and outside the CVP service
area.
3. Transfer operational control of the State Water Project or any of its facilities to MWD, the
State Water Project contractors, Central Valley Project contractors, the State and Federal
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Contractors Water Agency, any entity comprised of MWD or other water project contractors,
or any other special interest group.
IX. Optimize District Effectiveness
Support initiatives that: 1. Manage District resources in a transparent and fiscally responsible manner. 2. Give utilities the ability to avoid critical peak energy pricing or negotiate energy contracts that save ratepayers money.
3. Develop reasonable Air Pollution Control District engine permitting requirements. 4. Reimburse or reduce local government mandates. 5. Allow public agencies to continue offering defined benefit plans. 6. Result in predictable costs and benefits for employees and taxpayers. 7. Eliminate abuses.
8. Retain local control of pension systems. 9. Are constitutional, federally legal, and technically possible. Oppose initiatives that: 1. Restrict the use of, or reallocate, district property tax revenues to the detriment of special
districts. 2. Create unrealistic ergonomic protocol. 3. Micromanage special district operations. 4. Balance the state budget by allowing regulatory agencies to increase permitting fees. 5. Tax dependent benefits.
6. Require new reporting criteria on energy intensity involved in water supply. X. Safety, Security, and Information Technology Support initiatives that:
1. Provide funding for information security upgrades to include integrated alarms, access/egress, and surveillance technology. 2. Provide incentives for utilities and other local agencies to work cooperatively, share costs or resources. 3. Provide funding for communication enhancements, wireless communications, GIS, or other
technological enhancements. 4. Encourage or promote compatible software systems. 5. Fund infrastructure and facility security improvements that include facility roadway access, remote gate access, and physical security upgrades. 6. Protect state, local, and regional drinking water systems from terrorist attack or deliberate acts
of destruction, contamination, or degradation. 7. Provide funds to support training or joint training exercises to include contingency funding for emergencies and emergency preparedness. 8. Equitably allocate security funding based on need, threats and/or population. 9. Encourage or promote compatible communication systems.
10. Encourage and promote funding of Department of Homeland Security Risk Mitigation programs.
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11. Recognizes water agencies as emergency responders in the event of a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent and
mitigate loss or impairment of life, health, property, or essential public services due to natural
disasters (e.g., wildfires, earthquakes), power outages as well as terrorist and other criminal activities. 12. Provide state grant or other funding opportunities to support seismic risk assessment and mitigation plans, or to mitigate vulnerabilities.
13. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies. 14. Provide funding for projects that improve the security of the District facilities and operations. 15. Provide funding to support technologies that support remote working, when necessary to prevent loss of or damage to life, health, property, or essential public services.
Oppose initiatives that: 1. Create unnecessary, costly, or duplicative security or safety mandates. 2. Require expanded water system descriptions or additional public disclosure of public water systems details for large water suppliers in Urban Water Management Planning documents,
potentially compromising public water systems, and creating a conflict with the Department
of Homeland Security’s recommendation to avoid reference to water system details in plans available to the general public. XI. Water Quality Issues
Support initiatives that: 1. Assure cost-effective remediation and cleanup of contaminates of concern that have impacted groundwater and surface water. 2. Incorporate sound scientific principals in adopting drinking water standards for drinking water
concerns. 3. Revise NPDES standards and procedures to facilitate inland discharge and use of recycled water. 4. Establish appropriate quality standards, testing procedures, and treatment processes for emerging contaminants.
5. Alter the definition of “lead free” to reduce the permissible amount of lead in fixtures, plumbing, and pipe fittings to be installed for the delivery of drinking water. 6. Exempt purified wastewater from regulation as a discharge under the Clean Water Act. 7. Protect child public health by requiring schools to undertake lead testing in school drinking water systems.
8. Implement source control for management prevention of contamination by constituents of emerging concern. 9. Provide the necessary funding for research on the occurrence, treatment, health effects, and environmental cleanup related to contamination drinking water sources. 10. Implement and fund the San Diego Regional Water Quality Control Board’s triennial review
of water quality standards. 11. Provide funding and support for Colorado River salinity control projects and other water quality management efforts.
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12. Direct the state’s participation or assistance in water quality issues related to or threatening the Colorado River water source.
13. Streamline permitting of facilities constructed for the purpose of improving water quality.
14. Ensure consistent application of the law by the State Water Resources Control Board and the nine regional water quality control boards. Oppose initiatives that:
1. Eliminate the State Water Resources Control Board and/or the nine regional water quality
control boards without ensuring the functions and expertise of the boards is maintained in any reorganized entity. XII. Water Recycling and Potable Reuse
Support initiatives that: 1. Reduce restrictions on recycled water usage or promote consistent regulation of recycled water projects to reduce impediments to the increased use of recycled water. 2. Reduce restrictions on injecting recycled water into basins where there is no direct potable
use. 3. Advocate for direct potable reuse. 4. Advocate for recycled water use upstream of lakes and reservoirs if protected by urban water runoff protection systems. 5. Provide financial incentives for recharge of groundwater aquifers using recycled water.
6. Make recycled water regulations clear, consolidated, and understandable to expedite related project permitting. 7. Promote recycled water as a sustainable supplemental source of water. 8. Allow the safe use of recycled water. 9. Facilitate development of technology aimed at improving water recycling.
10. Increasing funding for water recycling projects. 11. Support continued funding of the Title XVI Water Reclamation and Reuse Program including Water Reclamation and Reuse Projects, the WaterSMART Program, and the Desalination and Water Purification Research Program. 12. Increase awareness of the ways recycled water can help address the region’s water supply
challenges. 13. Create federal and state incentives to promote recycled water use and production. 14. Establish federal tax incentives to support U.S. companies in the development of new water technologies that can lower productions costs, address by products such as concentrates, and enhance public acceptance of recycled water.
15. Establish a comprehensive national research and development, and technology demonstration, program to advance the public and scientific understanding of water recycling technologies to encourage reuse as an alternative source of water supply. 16. Provide incentives for local agencies to work cooperatively, share costs or resources to promote or expand the use of recycled water.
17. Further refine emergency regulations to reward local suppliers that have invested in using recycled water for landscape irrigation to maintain an incentive to continue expanding areas served by recycled water.
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18. Encourage the use of recycled water in commercial, industrial, institutional, and residential settings.
19. Recognize and support the development of potable reuse as a critical new water supply.
20. Define purified recycled water as a source of water supply and not as waste. 21. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to offset the significant costs of implementation. 22. Authorize local governmental agencies to regulate the discharge of contaminants to the sewer
collection system that may adversely affect water recycling and reuse.
23. Authorize and facilitate expanded use of local water resources including water recycling, potable reuse, graywater, and rainwater harvesting (e.g., cisterns and rain barrels), and brackish groundwater. 24. Streamline regulatory processes and requirements to encourage and support the development
of potable reuse and non-potable reuse as a municipal water supply.
25. Recognize the entire interconnected urban water cycle, as well as public health and safety, must be taken into consideration in long-term water use efficiency policies, particularly including the unintended consequences of declining flows on water, wastewater, potable reuse, and recycled water systems.
26. Encourage dual plumbing in new development where non-potable recycled water is likely to
available to enable utilization of recycled water. 27. Promote uniform regulatory interpretation of state recycled water system standards. 28. Support beneficial revisions to the California Plumbing Code that facilitate recycled water systems.
Oppose initiatives that: 1. Restrict use of recycled water for groundwater recharge. 2. Establish new water or recycled water fees solely to recover State costs without also providing some benefit.
3. Limit the ability of local governmental agencies to regulate the discharge of contaminants to
the sewer collection system that may adversely affect water recycling and reuse. 4. Establish unreasonable regulatory requirements or fees to the safe use of recycled water, which may unreasonably impede or create a disincentive to its further development. 5. Mandate the reduction of wastewater discharges to the ocean absent inclusion of funding to
offset the significant costs of implementation. XIII. Water Services and Facilities Support initiatives that:
1. Provide funding to implement actions identified in the California Water Action Plan to lay a
solid fiscal foundation for implementing near-term actions, including funding for water efficiency projects, wetland and watershed restoration, groundwater programs, conservation, flood control, and integrated water management and result in a reliable supply of high-quality water for the San Diego region.
2. Provide financial support to projects designed to mitigate the potential negative impacts of Global Climate Change on water supply reliability. 3. Promote the coordination and integration of local, state, and federal climate change policies and practices to the greatest extent feasible.
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4. Fund or otherwise facilitate ongoing implementation of the Quantification Settlement Agreement.
5. Provide reliable water supplies to meet California’s short and long-term needs.
6. Promote desalination pilot studies and projects. 7. Encourage feasibility studies of water resource initiatives. 8. Increase funding for infrastructure and grant programs for construction, modernization or expansion of water, wastewater treatment, reclamation facilities and sewer systems including
water recycling, groundwater recovery and recharge, surface water development projects and
seawater desalination. 9. Fund enhancements to water treatment, recycling, and other facilities to meet increased regulations. 10. Mandate uniform or similar regulations and procedures by state agencies in the processing
and administering of grants and programs.
11. Streamline grant application procedures. 12. Reduce regulations and other impediments for willing sellers and buyers to engage in water transfer agreements. 13. Promote or assist voluntary water transfers between willing buyers and willing sellers and
move those transactions through without delay.
14. Streamline the permitting and approval process for desalination and other water-related facilities and implementing water transfers that will improve water management. 15. Establish reasonable statewide approaches to sewer reporting standards. 16. Generate greater efficiencies, better coordinate program delivery, and eliminate duplication in
programs for source water protection without lessening the focus on public health of the
state’s Drinking Water Program. 17. Target efforts to fix specific issues with water supplies within the state’s Drinking Water Program. 18. Establish federal tax incentives to support U.S. companies in the development of new
desalination technologies that can lower productions costs, eliminate or reduce impingement
or entrainment, reduce energy use, and enhance public acceptance of desalinated water. 19. Establish a comprehensive national research and development, and technology demonstration program to advance the scientific understanding of desalination to expand its use as an alternative source of water supply.
20. Require the State Water Resources Control Board to exercise its authority, ensure robust
funding, and implement the Salton Sea mitigation and restoration plan, meet state obligations, and work with QSA stakeholders to find workable solutions to ensure the continuation of IID water transfers. 21. Support solutions to water supply issues that address common challenges, provide a
comprehensive approach that is fair to all users, balance the needs of urban and rural
communities, and take into consideration the interests of all stakeholders as well as the impact to the environment. 22. Further refine emergency drought regulations to eliminate a cap on credits and adjustments so as not to impose undue burden, financial or otherwise, on communities that have already
invested in water conservation, development of new water sources, storage, or loss
prevention. 23. Provide funding for water infrastructure development, infrastructure security, and rehabilitation and replacement projects that benefit ratepayers.
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24. Provide funding for habitat preservation programs that address impacts resulting from construction or operation of water system facilities.
25. Provide funding for projects that enhance security against terrorist acts or other criminal
threats to water operation, services, facilities, or supplies. 26. Provide incentives that encourage contractors to recycle or reduce waste associated with construction of water facilities. 27. Improve the local agencies’ efforts to maintain and protect its property, rights of way,
easements, pipelines, and related facilities and minimizes liability to local agencies and the
District. 28. Protect the local agencies’ properties from restrictions when surrounding properties are incorporated into preservation areas. 29. Encourage the use of current and emerging technologies for monitoring and assessing the
condition of large diameter pipelines.
30. Encourage water supplier to develop and execute asset management programs that include visual inspections, internal/external inspections, asset condition assessments, corrosion mitigation, and reis analysis in a manner that recognizes the individuality and uniqueness of each water supplier and its systems.
31. Improve the District’s efforts to maintain and protect its property, rights of way, easements,
pipelines, and related facilities and minimizes liability to the District. 32. Protect the District, other agencies and the Water Authority properties from restrictions when surrounding properties are incorporated into preservation areas. 33. Provide funding to water agencies for the voluntary retrofit of facilities for on-site generation
of chlorine.
34. Provide funding for water supplier asset management programs that involve the active monitoring, repair, or replacement of physical assets and infrastructure, which includes pipes, valves, facilities, equipment, and other infrastructure. 35. Provide for restrictions on price gouging during public safety power shutoff events and for at
least 72 hours following restoration of power.
36. Provide that de-energization or public safety power shutoff events may be included as a condition constituting a state of emergency or local emergency. 37. Provide a tax emption for the sale of, or storage, use, or consumption of, a backup electrical resources, that is purchased for exclusive use by a city, county, special district, or other entity
of local government during a de-energization or public safety power shutoff event.
38. State that the use of alternative power sources (such as generators) by essential public services during de-energization or public safety power shutoff events shall not be limited by any state or local regulations or rules. 39. Provide financial support to local projects designed to mitigate or adapt to potential negative
impacts of climate change on water supply reliability.
40. Investigate and provide financial support to projects designed to mitigate potential negative impacts of climate change on water supply reliability. Oppose initiatives that:
1. Restrict local control and discretions over water facilities, asset management, and facility
operations. 2. Make urban water supplies less reliable or substantially increase the cost of imported water without also improving the reliability and/or quality of the water.
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3. Create unrealistic or costly water testing or reporting protocol. 4. Disproportionately apportion the cost of water.
5. Create undo hurtles for seawater desalination projects.
6. Create unreasonable or confusing sewer reporting standards. 7. Create administrative or other barriers to sales between willing buyers and willing sellers that delay water transfers. 8. Create a broad-based user fee that does not support a specific local program activity or
benefit; any fee must provide a clear nexus to the benefit local ratepayers or local water
supplies from the establishment that charge or fee would provide. 9. Create unrealistic or costly to obtain water quality standards for potable water, recycled water, or storm water runoff. 10. Change the focus of the state’s Drinking Water Program or weaken the parts of the program
that work well.
11. Lessen the focus on public health of the state’s Drinking Water Program. 12. Impose undue burden, financial or otherwise, on communities that have already invested in water conservation, development of new water sources, storage, or loss prevention. 13. Impose additional mitigation costs or obligations for the Salton Sea on the non-state parties to
the Quantification Settlement Agreement.
14. Impair the District and other local water agencies’ ability to provide and operate the necessary facilities for a safe, reliable, and operational flexible water system. 15. Limit local agencies’ sole jurisdiction over planning, design, routing, approval, construction, operation, or maintenance of water facilities.
16. Restrict local agencies’ ability to respond swiftly and decisively to an emergency that
threatens to disrupt water deliveries or restricts the draining of pipelines or other facilities in emergencies for repairs or preventive maintenance. 17. Authorize state and federal wildlife agencies to control, prevent, or eradicate invasive species in a way that excessively interferes with the operations of water supplies.
18. Prohibit or in any way limit the ability of local agencies from making full beneficial use of
any water, wastewater, or recycling facility and resource investments. 19. Prohibit the use of alternative contract procurement methods that can be utilized in the construction of water facilities. 20. Shift the risks of indemnity for damages and defense of claims from contractors to the
District.
21. Impair local agencies’ efforts to acquire property or property interests required for essential capital improvement projects or acquisition of property to meet pipeline water drain-down needs for existing facilities. 22. Increase the cost of property and right of way acquisition.
23. Restrict the District’s use of public rights of way or increase the cost of using public rights of
way. 24. Restrict the transfer of property acquired for purposes of environmental mitigation or environmental mitigation credits to other public or private entities for long-term management. 25. Establish prescriptive leak loss control requirements for the operation, maintenance, and asset
management of water conveyance and distribution systems, that fail to consider full life-cycle
costing. 26. Establish meter testing requirements for source water meters that fail to consider industry standards and cost-effectiveness.
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27. Limit the discretion of the District from protecting security and privacy of comprehensive inventories of all assets, which includes infrastructure location, condition, performance, and
useful life.
28. Impair local agencies’ ability to execute the planning, design, and construction of projects using its own employees. 29. Limit the autonomy of discretion of water supplier to develop and execute asset management inspection programs that include visual inspections, internal/external inspections, asset
condition assessments, and corrosion mitigation in a manner that recognizes the individuality
and uniqueness of each water supplier and its systems. 30. Authorize air quality management districts or other regulatory bodies to adopt or maintain rules that would limit or prohibit a local government entity’s use of a state and/or federally complaint natural gas-powered generator during a de-energization or public safety power
shutoff event.
31. Require incorporation of climate change considerations into regional and local water
management planning that does not provide flexibility to the local and regional water agencies
in determining the climate change impact and identification of adaptation and mitigation
measures.
32. Impose top-down “one-size-fits-all” climate change mandates that fail to account for
hydrological, meteorological, economic, and social variation across the state and/or that fail to
incorporate local and regional planning and implementation priorities and protocols.
XIV. Water-Use Efficiency
Support initiatives that: 1. Provide funding for incentives for water-use efficiency and water conservation programs
including water-efficient devices, practices and demonstration projects and studies.
2. Encourage the installation of water-efficient fixtures in new and existing buildings. 3. Promote the environmental benefits of water-use efficiency and water conservation. 4. Enhance efforts to promote water-use efficiency awareness. 5. Offer incentives for landscape water-efficient devices including, but not limited to ET
controllers and soil moisture sensors.
6. Develop landscape retrofit incentive programs and/or irrigation retrofit incentive programs. 7. Permit or require local agencies to adopt ordinances that require or promote water-efficient landscapes for commercial and residential developments. 8. Create tax incentives for citizens or developers who install water-efficient landscapes.
9. Create tax incentives for citizens who purchase high-efficiency clothes washers, dual-flush
and high-efficiency toilets, and irrigation controllers above the state standards. 10. Expand community-based water-use efficiency and education programs. 11. Facilitate and encourage the use of rainwater-capture systems, i.e., rain barrels, cisterns, etc. and alternative water sources, i.e., air conditioner condensate for use in irrigation.
12. Develop incentives for developers and existing customers to install water-efficient landscape
in existing developments or new construction. 13. Encourage large state users to save water by implementing water-efficient technologies in all facilities both new and retrofit. 14. Encourage large state water users to save water outdoors.
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15. Educate all Californians on the importance of water, and the need to conserve, manage, and plan for the future needs.
16. Encourage technological research targeted to more efficient water use.
17. Give local agencies maximum discretion in selecting water-use efficiency and conservation programs that work for their customers and the communities they serve. 18. Require the Department of Water Resources to implement a uniform statewide turf rebate subsidy or incentive program.
19. Restrict Property Owner Associations from forbidding the use of California native plants,
other low water use plants, mulch, artificial turf, or semi-permeable materials in well-maintained landscapes. 20. Restrict Property Owner Associations from forbidding retrofits of multiple unit facilities for the purpose of submetering, if feasible.
21. Ensure plumbing codes and standards that facilitate the installation and/or retrofit of water
efficient devices. 22. Establish standards for the utilization of high-efficiency commercial coin-operated and residential clothes washers. 23. Provides for federal tax-exempt status for water-use efficiency rebates, consistent with
income tax treatment at the state level.
24. Encourage the use of graywater where it complies with local guidelines and regulations and is cost-effective. 25. Provide incentives, funding, and assistance to water agencies so that they can meet the water demand management measure requirements in the Urban Water Management Planning Act.
26. Provide incentives, funding, and other assistance to facilitate water-use efficiency
partnerships with the energy efficiency sector. 27. Provide incentives, funding, and other assistance where needed to facilitate market transformation and gain wider implementation of water efficient indoor and outdoor technologies and practices.
28. Recognize local control in determining water use efficiency criteria, such as impact of
recycled water salinity on irrigation use and efficiency for the application of non-potable recycled water. 29. Encourage reasonable tracking of water use and improved efficiency in the Commercial, Industrial, and Institutional (CII) sector.
30. Recognize local control in determining how to meet an overall efficient water use goal, based
on the combined efficient indoor use, outdoor use, and leak loss, as established under the criteria provided for in statute. 31. Further the statewide goal of a 20 percent reduction in per capita water use by 2020 as set forth in SBX7-7, enacted in November 2009, and preserves water agency discretion and
options for achieving this objective.
32. Ensure accurate and meaningful reporting of implementation of water-use efficiency and conservation measures. 33. Promote statewide implementation of water-use efficiency best management practices and demand management measures as defined in the Urban Water Management Planning Act.
Oppose efforts that: 1. Weaken federal or state water-efficiency standards.
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2. Introduce additional analytical and reporting requirements that are time-consuming for local agencies to perform and result in additional costs to consumers yet yield no water savings.
3. Permit Property Owners Associations to restrict low water use plants, mulch, artificial turf, or
semi-permeable materials in landscaping. 4. Repeal cost-effective efficiency standards for water-using devices. 5. Repeal cost-effective efficiency standards for water-using devices. 6. Create stranded assets by establishing long-term demand management water-use efficiency
and water supply requirements that are inconsistent with the Urban Water Management
Planning Act. 7. Prescribe statewide mandatory urban and agricultural water-use efficiency practices, including, but not limited to, methods, measures, programs, budget allocation, and designation of staff dedicated to water conservation programs, that override the authority of the boards of
directors of local water agencies to adopt management practices that are most appropriate for
the specific needs of their water agencies. 8. Mandate regulation of the CII Sector in a manner that is discriminatory, or sets unachievable Best Management Practices or compliance targets, or would otherwise impair economic activity or the viability of the CII sector.
9. Mandate that water agencies include an embedded energy calculation for their water supply
sources in the Urban Water Management Plan or any other water resource planning or master planning document. XV. Workforce Development
Support initiatives that: 1. Advocate for local, regional, and state programs that support a high-performing workforce
and increase the talent pool for water agencies.
2. Advocate for military veterans in the water industry workforce to ensure that veterans receive
appropriate and satisfactory credit towards water and wastewater treatment system
certifications in California for work experience, education, and knowledge gained in military
service.
3. Lower employment barriers for military veterans and transitioning military and that sustain
vital water and wastewater services for the next generation.
4. Recruit and support veterans and transitioning military through internships, cooperative work
experiences, and other resources.
5. Recruit and support underserved communities in the water industry through internships,
cooperative work experiences, and other resources.
6. Advocate and encourage candidate outreach and recruitment in relation to mission-critical job
categories in water and wastewater.
7. Ensure advanced water treatment operators and distribution system operators of potable reuse
and recycled water facilities have a career advancement path as certified water and/or
wastewater treatment plant operators.
8. Increase the number of educational institutions that provide water-industry related training
and related program criteria including but not limited to trades, certifications, and degrees.
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9. Increase the talent pool of future water industry workers through educational programs,
internships, and other resources.
10. Provide funding to educational institutions, water agencies, and workforce students regarding
careers in the water industry.
11. Develop qualified candidates for positions in the water industry.
12. Build awareness of water industry-related jobs through student outreach including but not
limited to K-12, community colleges, universities, and other educational institutions as well as
outreach to the general public.
Oppose initiatives that: 1. Hinder military veterans from using previous experience, education, and knowledge toward a
career in water.
2. Regulate agencies from hiring an experienced, educated, and talented water-industry workforce.
Anticipated Top 10 Legislative Priorities for 2021
1.COVID-19 Financial Relief: Low-income Water Rate Assistance/Discontinuation ofResidential Water Service – The COVID-19 pandemic has impacted Californians across thestate in a multitude of ways, not least of which include crushing financial hardships and debt.A recent survey by the State Water Resources Control Board (SWRCB) showed that there iscurrently between $600 and $700 million in drinking water-related debt, not including debt
related to past due wastewater bills. Additionally, there is more than $300 million in unpaid
bills to publicly owned electric utilities. This mounting debt is negatively impactingcommunities across the state and continues to grow. In response, Senator Dodd hasintroduced two bills – SB 222 and SB 223, which we will describe in more detail, below.
SB 222 would establish the Water Affordability Assistance Fund in the State Treasury and
establish the Water Affordability Assistance Program to help provide water affordabilityassistance for both drinking and wastewater services to low-income ratepayers experiencingeconomic hardships. SB 222 does not currently identify a funding source or appropriatefunding. However, should funding be appropriated, the program would assist with the
following: direct water bill assistance; water bill credits to renters; water crisis assistance;
water efficiency measures for low-income households; and short-term assistance to publicwater systems. The Association of California Water Agencies (ACWA) has recently taken anOppose Unless Amended position on this bill, has communicated significant concerns to theAuthor’s office, and submitted proposed amendments to the bill. Conversations on this bill
will continue.
SB 223 seeks to expand and extend existing statutorily required protocols and procedures toprotect low-income households that face or have already experienced water servicedisconnections due to the water customer’s inability to pay their water bill. Significant
provisions include requiring water agencies to develop arrearage management plans
including debt discharge and the prohibition of disconnection for an extended period.
While these two bills seek to address the significant impact COVID-19 pandemic has had onCalifornians across the state, there is a separate and alternative advocacy effort taking place
to provide additional state relief for utility and water debt more broadly. Specifically, a
coalition comprised of the California Municipal Utilities Association, California SpecialDistricts Association, California Association of Sanitation Agencies, and ACWA is urgingthe Governor and Legislature to allocate additional dedicated relief funding of at least $1billion for past-due public water and wastewater agency and publicly owned electric utility
bills. The Otay Water District signed on in support of this coalition request.
We will continue to monitor the development of Senator Dodd’s legislation as well asdevelopments with respect to the coalition budget request for financial relief.
While we are not currently aware of any proposals to modify Proposition 218 to provide
specifically for flexibility with customer assistance during the COVID-19 pandemic, ACWAhas introduced a sponsored bill, SB 323 (Caballero) which would which would improvefinancial stability for public agencies by creating a statute of limitations for legal challenges
Attachment D
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to water and sewer service rates, while still ensuring that adopted rates and charges comply with Proposition 218 and other existing laws. As you are acutely aware, the impacts of
COVID-19, including the necessary disruptions to in-person work and Governor Newsom’s
executive order prohibiting water shutoffs, have made water districts’ revenue and financial planning vastly more unpredictable. SB 323 is an important measure to ensure that existing legal protections are consistent in order to improve financial predictability for utility providers. The Otay Water District is currently considering supporting this measure.
With respect to local general obligation bonds, ACA 1 (Aguiar-Curry) was reintroduced in 2021, which would amend the California Constitution to lower the two-thirds threshold needed for a local agency to pass a local general obligation bond to 55%. This would provide local agencies, including cities and special districts such as water districts, more
opportunities to raise necessary funds to build and repair critical water infrastructure while
maintaining requirements for voter protection, public notice, and financial accountability. 2. Water Quality – As you may recall, in 2019, ACWA sponsored AB 1204 (Rubio) which would have established a three-year compliance period for any new Maximum Contaminant
Level (MCL) set by the SWRCB. However, the bill failed to move forward due to ongoing
negotiations with the SWRCB and the Assembly Environmental Safety and Toxic Materials Committee. Having reached consensus with the SWRCB on a feasible solution with respect to MCL
compliance periods, ACWA plans to introduce a similar proposal in 2021. While the
language is not yet in print, the proposal would require the SWRCB to set a compliance period for each new MCL established – a slightly different take on the former proposal, aimed at addressing the same goal of providing water providers a reasonable amount of time to comply with drinking water standards.
The MCL compliance issue will come into play particularly as we anticipate a draft MCL for Hexavalent Chromium (Chromium-6) in March or April of 2021, triggering a one-year clock for rulemaking at the SWRCB. We expect that the SWRCB will adopt a final MCL for Chromium-6 by the first quarter of 2022.
Another ongoing issue in 2021 will be Constituents of Emerging Concern (CECs). SB 230 (Portantino), a re-introduction of a bill from 2020, would require the SWRCB to establish and then maintain an ongoing dedicated program for CECs to proactively improve the understanding of their occurrence and public health significance in drinking water sources.
The bill also establishes a Science Advisory Panel to gather and develop information for the
program, requires the program to provide opportunities for public participation through periodic stakeholder meetings and workshops, establishes a CEC Action Fund through which (upon appropriation) funds could be used to establish and maintain the panel, collect occurrence data, develop standardized analytical methods to detect CECs, and support
research to fill information gaps, and authorizes the SWRCB to provide financial assistance
to certain public water systems to address costs associated with complying with the bill.
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Further, a bill that is garnering attention in Sacramento is AB 377 (R. Rivas) the California Clean Water Act, sponsored by the California Coastkeeper Alliance, which would require all
California surface waters to be fishable, swimmable, and drinkable by January 1, 2050 – an
aspirational goal for water quality standards in California. In the bill, “drinkable” applies to waters subject to a regional water quality control plan and means that the waters are drinkable to the extent required by the regional water quality control plan. ACWA recently adopted an Oppose position on AB 377 and it is our understanding that there is growing
opposition across industries.
We will continue to monitor discussions on all water quality related proposals as they move forward.
3. Climate Resiliency/Water Bonds – Over the past several years, there have been multiple
attempts to pass climate and water focused bonds in the Legislature as well as through the initiative process. Most recent examples were in the 2019-2020 Legislative Session, with the introduction of SB 45 (Portantino) – a $5.5 billion bond proposal, AB 352 (E. Garcia) – a $6.9 billion bond proposal, Governor Newsom’s $4.75 billion bond proposal, as well as a $8
billion bond initiative which ultimately failed to qualify for the November 2020 ballot. In
2021, we have seen the re-introduction of two bond proposals – SB 45 (Portantino) and AB 1500 (E. Garcia), which we will discuss in more detail, below. It is important to note, that both bond proposals have a strong focus and tie to California’s climate resiliency goals.
SB 45, the Wildfire Prevention, Safe Drinking Water, Drought Preparation, and Flood
Protection Bond Act of 2022, would authorize $5.5 billion in bonds to finance projects for a wildfire prevention, safe drinking water, drought preparation, and flood protection program, and if passed, would be submitted to voters at the November 8, 2022 statewide general election.
AB 1500, the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022, would authorize the issuance of state obligation bonds in the amount of $6.7B to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat
mitigation, and workforce development programs, and if passed, would also be submitted to
the voters at the November 8, 2022 statewide general election. Given the unprecedented economic impact the state is experiencing due to the COVID-19 Pandemic, it remains to be seen whether a bond proposal will move forward this year.
However, we have heard that there is a desire in the Legislature to move a bond proposal
forward to submit to the voters in 2022. ACWA remains engaged in the bond discussions and is currently in the process of proposing significant amendments to SB 45, increasing the bond dollar amount significantly, as well as including many key priority categories not addressed in the current bond language.
SB 45 will have its first hearing in the Senate Natural Resources and Water Committee on March 16. AB 1500 has not yet been set for hearing. We will continue to monitor discussions on bonds and the likelihood of passage in the 2021-2022 legislative session.
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4. Water Use and Efficiency
As you know, in 2018, two water conservation bills AB 1668 (Friedman) and SB 606
(Hertzberg) were signed into law which establish a new long-term water conservation framework for California. These efforts are currently in the implementation phase within the Department of Water Resources and the State Water Resources Control Board.
In 2021, Assemblymember Friedman introduced AB 1434 which would revise the indoor
residential water use standards within the context of the AB 1668 and SB 606 water-use efficiency statutes. Specifically, AB 1434 would modify the indoor water use standards, as follows: 48 gallons per capita per day beginning January 1, 2023; 44 gallons per capita per day beginning January 1, 2025; and 40 gallons per capita per day beginning January 1, 2030
(current law is 55, 52.5 and 50 gallons per capita per day, respectively).
We will continue to monitor this bill as it moves forward and provide updates on new developments.
With respect to Water Loss Performance Standards pursuant to SB 555 (2015), in December
2020, the SWRCB released a revised regulatory framework and draft economic model to calculate volumetric performance standards for water loss. These revisions intend to assess full life-cycle costs to develop agency specific performance standards. Specifically, the proposed regulation would require the state’s approximately 415 larger urban water
suppliers, that together serve approximately 36 million people (more than 90 percent of
California’s population), to meet individual volumetric water loss standards determined through a water system-specific economic model developed by the SWRCB. According to the SWRCB, an average urban water supplier in California loses about 34 gallons per day from leakage from each service connection, equivalent to about 326,000 acre-feet or 106
billion gallons annually. The proposed water loss standards are anticipated to reduce water
loss statewide by about 40 percent, reduce energy use for water treatment, improve infrastructure maintenance, and prevent breaks that cause property damage and water outages.
We anticipate the adoption of the proposed regulations between March and July of 2021. We
will continue to monitor the development of Water Loss Performance Standards Regulations and keep the Otay Water District apprised of new developments. 5. Recycled Water
While recycled water remains a critical component of the state’s water supply, it remains to
be seen if this will be a priority in the Legislature in 2021. It is important to note that there is funding in both bonds SB 45 and AB 1500 for recycled water projects – $100 million in SB 45 and $300 million in AB 1500. We understand that both ACWA and the WateReuse Association will be advocating for additional funding for recycled water projects, through SB
45 in the coming months. These negotiations are ongoing.
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With respect to other recycling related legislation, SB 496 (Laird) would authorize the board of supervisors of a county to appropriate and spend money from the general fund of the
county for the reuse of flood waters in connection with streams or rivers in the county.
Additionally, SB 273 (Hertzberg) would authorize municipal wastewater agencies to enter into voluntary agreements with entities responsible for stormwater management – including municipal, industrial, and commercial stormwater dischargers – to manage stormwater and
dry weather runoff more effectively. This bill is aimed at promoting regional interagency
cooperation, improving water quality, and making efficient use of publicly owned infrastructure by removing barriers that prevent stormwater capture, treatment, and recycling. We will continue to monitor for additional proposals related to recycled water this
Legislative Session.
6. Veteran Water Industry Advocacy – In 2019, the Otay Water District cosponsored with the San Diego County Water Authority AB 1588 (Gloria), signed by Governor Newsom on October 11, 2019, which helps ensure that military veterans receive appropriate and
satisfactory credit towards water and wastewater treatment systems certifications in
California for the work experience and knowledge gained working on these systems in military service. Parallel to this effort, following the bill signing, we worked with the Otay Water District to
draft a letter of recommendation for Jose Martinez in his candidacy for sitting on a water or
wastewater advisory committee within the SWRCB. We were successful in obtaining a signed letter of recommendation from now former Assemblymember Todd Gloria, author of AB 1588, recommending Jose Martinez for this position.
In 2021, we learned that Jose Martinez was selected to sit on the Drinking Water Operator
Certificate Program Advisory Committee and will continue his advocacy work on issues such as veteran water industry workforce while sitting on this committee. We will remain vigilant of the work of this committee going forward and keep the Otay Water District apprised of potential legislation in this space.
7. Voluntary Agreements/Bay-Delta – As you are aware, habitat restoration and proper management of the Bay-Delta continue to remain a top priority for California. The Voluntary Agreements – which represent comprehensive plans for protecting the Bay-Delta from further environmental harm, while providing adequate water supplies for farms and cities –
propose a suite of integrated actions that are far broader than the approach proposed by the
SWRCB. State agencies are currently analyzing Voluntary Agreements to determine their adequacy to move forward. However, we understand that ACWA has been advocating strongly for
adoption of the Voluntary Agreements and have proposed a roadmap on how to achieve the
desired outcomes for California, consistent with the vision outlined in the Water Resilience Portfolio.
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This will remain a high priority issue in the water space in 2021.
8. Delta Conveyance/State Water Project – The planning process for the proposed Delta
Conveyance project, which seeks to modernize State Water Project conveyance, continues to move forward. At this point in time, public information and community engagement will remain a central and important focus for the Department of Water Resources (DWR). Within the next few years and in preparation of the release of a Draft Environmental Impact Report
(EIR) for public review in mid-2022, DWR has prepared a public outreach plan that
identifies information and engagement opportunities and milestones. The objectives of this plan are to provide tools for the public to meaningfully navigate and participate in the planning and environmental review process; build capacity among the
public to engage in the process and better understand the technical information ahead of the
release of the Draft EIR; continue to advance planning activities for successful completion of required permitting and project approvals – including meeting regulatory standards for public participation; and to continue to refine the proposed project with respect to community benefits and impact minimization/mitigation development, based on public and stakeholder
input. Efforts underway will include informational webinars, a newly initiated Community
Development Program, design-focused stakeholder engagement, multi-agency coordination, and environmental justice and disadvantaged community outreach. We will continue to stay engaged in the developments of the Delta-Conveyance project and
any legislation pertaining to the State Water Project more broadly. 9. Water Resilience Portfolio In July of 2020, Governor Newsom released a final version of the Water Resilience Portfolio
– California’s blueprint for preparing for extreme droughts and floods, rising temperatures,
declining fish populations, over-reliance on groundwater, and other challenges in future years. The Governor’s January budget included investments to support the work towards regional
water resiliency including funding for State Water Efficiency and Enhancement Program
Grants, Sustainable Groundwater Management Program implementation, flood preparedness, delta resilience, wetlands management and deferred maintenance for critical repairs, among other critical investments.
We have also seen several legislative proposals which align with the some of the goals set
forth by the Water Resilience Portfolio on issues such as CECs, sustainable groundwater management, stormwater diversion and capture, and water quality, to name a few. The state agencies involved are planning to track and share progress on portfolio
implementation with an annual report and stakeholder gathering. We will continue to monitor
for progress and reporting on implementation of the Water Resilience Portfolio, including opportunities for engagement.
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10. Wildfires and Climate Change – Wildfire prevention and mitigation will continue to be a priority for the Governor and Legislature in 2021. The Governor’s budget included a $1
billion comprehensive package of resources to increase the pace and scale of forest health
activities and decrease fire risk. The Legislature has also introduced at least 20 bills to address wildfires so far in 2021. As you can imagine, the wildfires that burned over 4 million acres in California during 2020 amid the COVID-19 pandemic placed enormous stress on the state’s emergency response system. The state will continue to focus on strengthening its
ability to respond to emergencies and recover from such emergencies in the future. Continuing Governor Brown’s legacy, addressing climate change remains a priority for the Newsom Administration. Last September, Governor Newsom issued Executive Order N-79-20, which prohibits the sale of gasoline passenger vehicles by 2035, requires drayage trucks
to be zero emission by 2035, and requires zero emission heavy-duty trucks by 2045. As it
relates to the energy grid, AB 1317 by Assemblyman Berman will expedite California’s 100% clean and renewable energy standard while SB 67 by freshman Senator Josh Becker will modify the state’s Renewable Portfolio Standard to renewable energy load supplied as opposed to renewable energy procured. SB 260, introduced by Senator Scott Wiener, will
require companies with sales in excess of $1 billion to report their greenhouse gas emissions
while giving the Air Resources Board the authority to set science based, custom emission reduction targets. In 2021, we will see bills related to carbon capture and sequestration for large industrial facilities, development of offshore wind, a ban on fracking, policies related to California’s 2045 carbon neutrality and a host of climate adaptation measures.
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: April 7, 2021
SUBMITTED BY: Tita Ramos-Krogman,
Acting District Secretary
W.O./G.F. NO:DIV. NO.
APPROVED BY: Tita Ramos-Krogman, Acting District Secretary
Jose Martinez, General Manager
SUBJECT: Board of Directors 2021 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting calendar for 2021 is being presented for discussion.
PURPOSE: This staff report is being presented to provide the Board the
opportunity to review the 2021 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 Meetings for 2021
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 04-07-21.doc
AGENDA ITEM 9a
Board of Directors, Workshops and Committee Meetings (Teleconference)
2021
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 6, 2021 February 3, 2021 March 3, 2021 April 7, 2021
May 5, 2021
June 2, 2021 July 7, 2021 August 4, 2021 September 1, 2021
October 6, 2021
November 3, 2021 December 1, 2021
January 20, 2021 February 17, 2021 March 17, 2021 April 21, 2021
May 19, 2021
June 16, 2021 July 21, 2021 August 18, 2021 September 15, 2021
October 20, 2021
November 17, 2021 December 15, 2021
SPECIAL BOARD MEETING / BOARD WORKSHOP: April 28, 2021 at 12:00 p.m.: Special Board Meeting/Workshop 1: Key Budget Assumptions
STAFF REPORT
TYPE MEETING: Board Meeting MEETING DATE: April 7, 2021
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: Informational Report Presenting the 2021 Economic Outlook
Update for San Diego County Prepared by the Xpera Group
GENERAL MANAGER’S RECOMMENDATION:
Informational Report presenting the 2021 Economic Outlook Update
for San Diego County prepared by the Xpera Group.
PURPOSE:
To present to the Board the 2021 Economic Outlook Update for San
Diego County prepared by Alan Nevin of the Xpera Group.
DISCUSSION:
Each year the District goes through a budget process with new
challenges. The budget process starts in January and culminates
with a budget workshop with the Board in June. Consistent with
the FY 2021 budget process, the FY 2022 budget will be presented
to the Board in three (3) presentations:
1.The first consists of this Economic Outlook Update
presentation, which will be used to evaluate potential
economic impacts on revenues and budget for growth.
2.The second presentation will be a Board Workshop held on
April 28th to review key assumptions and inputs used to
prepare the budget, along with known opportunities and
challenges.
3.The third and final presentation of the consolidated budget
will be held on June 2nd. At that time, staff will be
presenting the consolidated FY 2022 budget and request
AGENDA ITEM 10a
2
Board approval of the following items: the FY 2022
Operating and CIP Budget, interfund transfers, actions
associated with recommended rate changes, and the FY 2022
Salary Schedule.
To prepare the budget, staff makes every effort to present the
most realistic set of factors and assumptions based on
information received from various sources, including growth and
economic expectations. Part of this process includes engaging
an Economist to perform an Economic Outlook study evaluating the
projected health of both the global and local economies. The
study includes discussions about macro and micro economic
activities, including a six-year projection of development
within the District. Staff incorporates the information
provided in this report in preparing the budget including
estimated growth-related revenues and costs, and inflation
factors.
When compared to the 2020 economic study six-year projections,
Equivalent Dwelling Units (EDUs) are projected to decrease by
16%, which will result in a $3.6 million decrease in capacity
fee revenues. This decrease is partially offset by FY 2021 EDU
sales exceeding budget by approximately $1.7 million, resulting
in a net $1.9 million reduction in capacity fee revenue. The
following table provides a historical comparison of growth
EDU’s.
3
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
The $1.9 million decrease in capacity fee projections over the
next six years will adversely impact rates. While the benefit
will be a factor smoothed into the rates as part of preparing
the six-year rate model, it is equivalent to a one-time rate
increase of 0.3%.
STRATEGIC OUTLOOK:
The District ensures its continued financial health through
long-term financial planning and debt planning.
LEGAL IMPACT:
None.
Attachments:
A)The Xpera Group Presentation
B)The Xpera Group Economic Report
ECONOMIC OUTLOOK UPDATE
OTAY WATER DISTRICT
SAN DIEGO COUNTY
2021-2027
Presented by Alan Nevin
Xpera Group
April 7 2021
Attachment A
THE WORLD
Country
World 66,036$ 85,146$
China 6,087 9.2%14,220$ 16.7%
United States 14,990 22.7%21,340$ 25.1%
Source: World Bank DataBank and CIA Fact Book
Gross Domestic Product
(Current Dollars - Millions)
U.S and China
2000 & 2019
2010 2019
Country 2000 2019 Change % Change
World 22,611$ 85,146$ 62,535$ 277%
China 1,211$ 14,220$ 13,009$ 1074%
United States 10,252$ 21,340$ 11,088$ 108%
European Union 8,910$ 18,800$ 9,890$ 111%
India 468$ 2,970$ 2,502$ 535%
Russia 259$ 1,610$ 1,351$ 522%
Brazil 655$ 1,960$ 1,305$ 199%
South Korea 561$ 1,660$ 1,099$ 196%
Mexico 707$ 1,240$ 533$ 75%
United Kingdom 1,657$ 2,018$ 361$ 22%
Japan 4,887$ 5,180$ 293$ 6%
Source: World Bank DataBank and CIA Fact Book
Gross Domestic Product
(Current Dollars - Millions)
Major Countries
2000 & 2019
Country 2000 2020
Change
2000/2020
United States 36,334$ 63,051$ 26,717$
Germany 23,718$ 45,466$ 21,748$
Israel 21,043$ 41,560$ 20,517$
South Korea 11,947$ 30,466$ 18,519$
United Kingdom 27,987$ 39,229$ 11,242$
China 959$ 10,261$ 9,302$
Russia 1,771$ 10,500$ 8,729$
India 443$ 1,876$ 1,433$
Japan 38,532$ 39,048$ 516$
(1) 2020 GDP converted into U.S. Dollars divided into the avg. pop.
Source: International Monetary Fund
GDP Per Capita (1)
Major Countries
2000 & 2020
2020-2050
Country 2020 2050 Total
India 1,380,004,000 1,639,176,000 259,172,000
United States 331,003,000 379,419,000 48,416,000
Mexico 128,933,000 155,151,000 26,218,000
Brazil 212,559,000 228,980,000 16,421,000
United Kingdom 67,886,000 74,082,000 6,196,000
Germany 83,784,000 80,104,000 (3,680,000)
South Korea 51,269,000 46,830,000 (4,439,000)
Russia 145,934,000 135,824,000 (10,110,000)
Japan 126,476,000 105,804,000 (20,672,000)
China 1,439,324,000 1,402,405,000 (36,919,000)
Source: United Nations Dept.of Economic & Social Affairs, Population Division
Population Projection
Major Countries
2020-2050
Month
Unmployment
Rate
Mar-20 4.4%
Apr-20 14.7%
Oct-20 6.9%
Jan-21 6.3%
Source: U.S. Bureau of Labor Statistics
Not seasonally adjusted
Unemployment Rate
United States
March 2020-January 2021
THE U.S
10.0%
3.5%
15.0%
6.3%
Month YE 2019 YE 2020
Bachelor's Degree or Higher 1.8%3.8%
Some College or A.A. degree 2.6%6.3%
High School (no college)3.7%7.8%
Less than a HS Degree 5.9%9.8%
Source: BLS.gov
Unemployment Rate
By Years of Educational Attainment
United States
2019-2020
Ethnicity January 2020 January 2021
White 3.5%5.7%
Asian 3.2%6.6%
Hispanic 5.1%8.6%
Black 6.6%9.2%
Unemployment Rate
Ethnicity
United States
March 2020-January 2021
Industry YE 2019 YE 2020 Change % of Losses
Leisure & Hospitality 16,450 12,712 (3,738) 44.5%
Construction 7,447 7,425 (22) 0.3%
Financial Activities 8,819 8,756 (63) 0.7%
Educaton 3,909 3,483 (426) 5.1%
Retail Trade 16,159 15,730 (429) 5.1%
Health Care 16,497 16,066 (431) 5.1%
Manufacturing 12,876 12,331 (545) 6.5%
Trade, Transportation & Utilities 28,582 27,896 (686) 8.2%
Professional & Business Services 21,600 20,800 (800) 9.5%
Government Workers 23,011 21,750 (1,261) 15.0%
Total 155,350 146,949 (8,401) 100.0%
Note: Not Seasonally Adjusted
U.S. Bureau of Labor Statistics
Persons Unemployed by Industry (Millions)
United States
December 2019-2020
Year No.
2015 17,404,970
2016 17,500,719
2017 17,212,565
2018 17,323,849
2019 17,023,894
2020 14,500,000
New Car Sales - Annual
United States
2015-2020
Month 2019 2020
January 23,721 23,721
February 24,389 31,650
March 30,557 19,170
April 25,631 12,112
May 25,631 27,901
June 29,201 29,492
July 27,490 29,675
August 30,144 26,377
September 32,002 28,576
Source: Mercedes-Benz
Mercedes Benz Sales by Month
in the United States
2019-2020
Month 000
2015 37,255
2016 38,602
2017 39,204
2018 40,233
2019 40,807
2020 41,000
Source: Bureau of Transportation Statistics
Used Vehicle Sales
United States
2015-2020
16.21%
Year Total
Months
Supply
2015 5,250,000 5.9
2016 5,450,000 5.4
2017 5,510,000 3.9
2018 5,340,000 4.0
2019 5,340,000 3.9
2020 (P)7,100,000 2.5
Source: National Assn. of Realtors
Home Resales
United States
2015-2020
Year Total
Single
Family
Multi-
Family
2015 1,182,600 696,000 486,600
2016 1,206,600 750,800 455,800
2017 1,282,000 820,000 462,000
2018 1,328,800 855,300 473,500
2019 1,386,000 862,100 523,900
2020 1,452,000 977,000 475,000
Census.gov
Residential Building Permits
United States
2015-2020
NOW LET’S LOOK AT
THE GOLDEN STATE
Rank Country GDP (Trillions)
1 United States 20.49$
2 China 13.40$
3 Japan 4.97$
4 Germany 4.00$
5 California 3.20$
6 United Kingdom 2.83$
7 France 2.78$
8 India 2.72$
9 Italy 2.07$
10 Brazil 1.87$
Source: International Monetary Fund
Gross Domestic Product
Top Countries & California
2020
Year Trillions Change % Change
2015 2,553,772$ 158,610$ 6.6%
2016 2,657,798$ 104,026$ 4.1%
2017 2,819,111$ 161,313$ 6.1%
2018 2,997,733$ 178,622$ 6.3%
2019 3,137,469$ 139,736$ 4.7%
Source: CA Dept. of Finance
Change in Gross Domestic Product
California 2015-2019
State 2000 2020 2040
California 33,871,648 39,782,870 43,946,643
2000-2020 2020-2040
Annual Change 295,561 208,189
Source: U.S. Census
Population
Projected Population Change
California
2000-2040
Year No.
2009 227,870
2015 168,843
2019 143,664
Source: U.S. Citizenship & Immigration Services
Legal Immigration to California
2009-2019
Year Pop. Change Job Change
2015 313,419 473,000
2016 261,157 430,000
2017 267,395 347,000
2018 187,944 346,000
2019 108,730 257,000
Source: CA DOF
Population and Employment
California
2015-2020
LET’S TALK
SAN DIEGO COUNTY
Year Population Change Year Population Change
1990 811,688 n/a 1990 1,660,855 n/a
2000 1,364,918 553,230 2000 2,487,367 826,512
2010 1,725,140 360,222 2010 3,155,070 667,703
2020 (F)2,099,293 374,153 2020 (F) 3,800,000 644,930
Source: World Population Review
Tijuana Baja California
Population
Tijuana & Baja California
1990-2020
Border
Crossing
Personal
Vehicles
Bus
Passengers Pedestrians Trucks
San Ysidro 14,979,363 79,960 10,799,398 n/a
Otay Mesa 6,584,442 11,031 3,567,271 948,630
Total 21,563,805 90,991 14,366,669 948,630
Incoming Vehicles
from Mexico
2019-2020
Rank County Population
1 Los Angeles 10,081,570
2 San Diego 3,343,355
3 Orange 3,168,044
4 Riverside 2,411,439
5 San Bernardino 2,149,031
Source: Census.gov
Most Populous Counties
California
2020
Year Population Change
2015 3,280,850 n/a
2016 3,306,090 25,240
2017 3,321,240 15,150
2018 3,333,860 12,620
2019 3,340,312 6,452
2020 3,343,355 3,043
Source:Census.gov
Population
San Diego County
2015-2020
Year Employment Change
2015 1,384,800 40,100
2016 1,422,600 37,800
2017 1,452,200 29,600
2018 1,482,200 30,000
2019 1,503,900 21,700
2020 1,419,000 (84,900)
Source: U.S. BLS
Non-Farm Employment
San Diego County
2015-2020
Category
COVID
March December
March -
December %
Total 1,494,000 1,419,600 (74,400) -5.0%
Leisure and Hospitality 192,900 157,200 (35,700) -18.5%
Professional & Business
Services 259,500 270,400 10,900 4.2%
Construction 80,200 88,000 7,800 9.7%
Trade, Transportation &
Utilities 218,800 220,900 2,100 1.0%
Manufacturing 117,100 109,600 (7,500) -6.4%
Education & Health
Services 219,600 209,400 (10,200) -4.6%
Government 252,900 234,900 (18,000) -7.1%
Source: U.S. Bureau of Labor Statistics
Change
Job Losses/Gains by Category
Wage and Salary Employment
San Diego County
March -December 2020
Annual Total
Single
Family
Multi-
Family (1)
2020 9,447 2,898 6,549
2019 7,058 2,594 4,464
(1) condominium and rental
Source: U.S. Census
Residential Building Permits
San Diego County
CY 2019 & 2020
No. of Units
Year Detached Attached Total
2019 31,918 15,345 47,263
2020 28,996 14,550 43,546
Source:SDAR
Closed Sales
SDAR
2019 and 2020
Category Detached Attached
% of Original List Price Received 100.3% 99.4%
Days on Market Until Sale 19 21
Months Supply of Inventory 0.9 1.1
Source: SDAR
Existing Homes Sales
San Diego County
Year End 2020
Key Indicators
Month Detached Attached
2019 655,000$ 435,000$
2020 755,000$ 496,500$
Change 2019-2020 100,000$ 61,500$
% Change 15.3% 14.1%
Source: SDAR
Median Home Prices - Closed Sales
December 2019 and 2020
Project Developer Sq.Ft.Acres
Amazon Fulfillment Ctr.Seefried 3,400,000 65.0
Otay Crossings Kearny Real Estate 150,000 31.0
Copart Auto Auction @ Brown Field n/a 50.0
Piper Otay Phelan 350,000 24.8
Otay River Business Park Sudberry 409,500 33.5
8150 Airway Rd.Rockefeller Group 135,623 7.8
Vogt Industrial Park IRE Development 100,214 n/a
Majestic Sunroad Center Sunroad 227,268 n/a
California Crossings n/a 453,330 n/a
Gateway Energy Storage LS Power n/a n/a
Total 5,225,935
2021-2023
Industrial Projects
Planned or Under Construction in Otay Mesa
ZIP Area SFD SFA SFD SFA SFD SFA
91902 Bonita 147 42 157 37 211 57
91910 Chula Vista No.342 133 366 134 483 180
91911 Chula Vista So.347 131 325 144 463 154
91913 Chula Vista Eastlake 391 281 445 317 497 392
91914 Chula Vista NE 162 48 179 54 208 89
91915 Chula Vista SE 271 220 267 253 313 306
92154 Nestor Otay Mesa 280 149 323 171 405 247
Total 1,940 1,004 2,062 1,110 2,580 1,425
2,944 3,172 4,005
Source: SDAR
202020192018
Closed Sales
Detached & Attached homes
Southern Sector
San Diego County
YE 2020
Detached Detached % Attached %
Sold Out 24 75%5 33%
1-20 Remaining 6 19%3 20%
20-50 Remaining 2 6%7 47%
More than 20 Remaining 32 100% 15 100%
Remaining Inventory - Number of Projects
Detached and Attached New Homes
Offered for Sale in 2020
Otay Ranch/Otay Mesa
Year End 2020
Fiscal Years:20
2
0
-
-
2
0
2
1
20
2
1
-
2
0
2
2
20
2
2
-
2
0
2
3
20
2
3
-
2
0
2
4
20
2
4
-
2
0
2
5
20
2
5
-
2
0
2
6
20
2
6
-
2
0
2
7
To
t
a
l
Single Family for Sale
2020 Report 160 260 360 290 250 250 1,570
2021 Report 160 260 360 290 250 250 1,570
Attached for Sale
2020 Report 200 400 450 450 450 450 2,400
2021 Report 200 400 450 450 450 450 2,400
Apartments
2020 Report 482 790 1,500 1,200 1,000 1,000 5,972
2021 Report 250 800 800 700 700 700 3,950
Total
2020 Report 842 1,450 2,310 1,940 1,700 1,700 9,942
2021 Report 610 1,460 1,610 1,440 1,400 1,400 7,920
2021-2027 Projections
With Comparison of 2020 Report
Otay Water District Service Area
FY 2020-2027
➢Appraisals & Market Studies
➢Expert Witness Services
➢Succession & Estate Planning
Alan N. Nevin
Director, Economic and Market Research
(619) 417-1817 anevin@xperagroup.com
10911 Technology Place
San Diego CA 92127
858-436-7770
Economic Outlook Update
Otay Water District
San Diego County
2021-2027
Prepared for
Otay Water District
February 2021
By
Alan Nevin
Director, Market Research & Valuations
Xpera Group
Attachment B
2
January 31 2021
Mr. Jose Martinez
General Manager
Otay Water District
2554 Sweetwater Springs Blvd.
San Diego CA 91978
RE: Economic Outlook Update 2021-2027, Otay Water
District
Dear Mr. Martinez:
Xpera Group has been retained to prepare an economic outlook update for the Otay
Water District for the 2021-2027 period.
The outlook includes an economic and demographic analysis of the international,
national and local economies and then focuses on the changes in population,
residential and commercial development within the Otay Water District service area.
We stand ready to respond to your inquiries about the study and its findings.
Sincerely yours,
Alan N. Nevin
Director, Economic Research
Xpera Group
3
Table of Contents
This report is segmented into ten sections:
Introduction
➢ Section 1: International Outlook, p.7
➢ Section 2: The National Economy , p16
➢ Section 3: The California Economy, p 32
➢ Section 4: NAFTA, p 40
➢ Section 5: The San Diego County Economy, p 46
➢ Section 6: San Diego Housing Market, p 54
➢ Section 7: Future of South County, p.81
➢ Section 9: Future Commercial Development, p.97
➢ Section 10 Projections for OWD Development Activity 2019-2027, p 102
4
Introduction: Economic Outlook Update
Otay Water District Service Area
Xpera Group has undertaken and now completed an update of the Economic
Outlook Study for both San Diego County and the area served by the Otay Water
District (“OWD”).
In this report, we concentrate on the changing demographics in the world, the
nation, California and San Diego County and the projected residential and
commercial development within the County and the OWD service area.
The OWD services most of Chula Vista east of I-805 and the Otay Mesa area. The
service area covers 125 square miles (80,000 acres) and services more than
50,000 customers and serves a population of approximately 225,000, approximately
7.0% of the County population.
The OWD has a potable distribution system of 723 miles; 84 miles of public sewer
system, 104 miles of recycled distribution system and 6,000 fire hydrants.
Its service area covers 80,320 acres, more than any other water district in the
County:
I-1
District Acres
Otay Water District 80,320
Valley Center MWD 64,559
Rainbow MWD 47,670
Rincon Del Diablo MWD 45,868
Padre Dam MWD 45,892
Source: San Diego County Water Authority
Gross Acres Served
Top Five Water Districts
San Diego County
as of YE 2020
5
Of the top five water suppliers in the County, Otay Water District ranks No.3, behind
only the City of San Diego and the Helix Water District.
I-2
The map below shows the OWD boundaries in pink:
District Persons
City of San Diego 1,373,607
Helix Water District 277,294
Otay Water District 225,164
City of Oceanside 178,021
City of Escondido 137,941
Source: San Diego County Water Authority
Population Served
Top Five Water Suppliers
San Diego County
as of YE 2020
6
I-3
In last year’s report, we noted evidence of strong future development in the OWD
service area. We have now updated this information to year end 2020 in order to
project outward to fiscal years 2021-2026.
Our comfort level for forecasting out five years is much better than for one year: that
one year being 2021. The reasoning behind that is that it is difficult to know exactly
when the developers are going to break ground, even though we have their best
estimates.
For purposes of this report, we are assuming that most persons living in
industrialized countries will have received their vaccinations by the third quarter of
this year and that the economies of those countries will have recovered to the 1st
quarter 2020 level by year end 2021. We further assume that the current
vaccination formula will cover additional strains.
The good news is that during the entirety of 2020, residential real estate maintained
its momentum for both new and resale product and commercial real estate suffered
only in the leisure and hospitality industry and regional shopping centers.
This forecast explores the international economies as well as the national and local
ones. Of course, the emphasis will be on the Otay Water District service area.
7
Section 1: International Outlook
As the industrialized countries grow, so do our opportunities for doing business
abroad, with the West Coast of our Nation in a particularly strong position to benefit
from international growth.
1.1 Gross Domestic Product (GDP)
The world we know today is new, in economic terms. Until about two centuries ago,
gross domestic product was flat since the beginning of recorded history.
1.1
Then starting with the industrialization of product production, GDP soared. Below is
a 50-year picture of ten countries with massive changes in their GDP.
The 50-year snapshot is very telling. In the past half century, almost half of
the entire gain in world GDP took place in the United States and China.
Another 25% occurred in the other eight countries shown here:
8
Thus, almost 75% of the growth of the world’s gross domestic product
occurred in just ten countries.
1.2
The second good news story is that the GDP Per Capita continues to rise, further
indication that households around the world have more money to spend on
consumer goods (many of which will be produced in the U.S.).
The most frequently asked question about GDP is “when will China pass the U.S.?”
Most sources say between 2028 and 2030; however, on a per capita basis, the U.S.
is six times larger than China’s per capita income. Therefore, their total GNP
passing that of the U.S., doesn’t mean much.
Over the past fifty years, the United States has continually increased its share of the
world market and now has one-quarter of the world GDP:
Country 1970 2020 Change
World 12.14$ 87.70$ 75.56$
United States 1.30$ 21.43$ 20.13$
China 0.23$ 14.34$ 14.11$
Japan 0.21$ 5.08$ 4.87$
Germany 0.20$ 3.86$ 3.66$
India 0.06$ 2.87$ 2.81$
United Kingdom 0.12$ 2.83$ 2.71$
Russia 0.21$ 1.70$ 1.49$
South Korea 0.08$ 1.65$ 1.57$
Mexico 0.04$ 1.27$ 1.23$
Sources: World Bank, Directorate of Intelligence, CIA
Gross Domestic Product ($Trillion)
Major Countries
1970-2020
A 50-Year Picture
9
1.3
1.2 Per Capita Income
Perhaps even more positive is the major increase in GDP per capita in the major
industrialized countries. In that category, South Korea and China lead the pack by a
wide margin, increasing their per capita income ten-fold.
Year World U.S.U.S. %
1970 12,137 1,070 8.8%
1990 27,539 5,960 21.6%
2010 66,036 15,000 22.7%
2020 87,000 21,000 24.1%
Source: World Bank
Gross Domestic Product
United States and the World
1970-2020
in Trillions
10
1.4
A substantial part of China’s and Korea’s gain is the result of the rising wages that
have made those two countries less competitive in the world market. Therefore,
they have been moving part of their manufacturing to third world countries with
lower wages. It’s also a hedge against tariffs.
Largely as a result of the outsourcing of manufacturing, there have been massive
increases in GDP per capita in the third world countries:
Country 1970 2020 Change %/Change
South Korea 279$ 31,846$ 31,567$ 11314%
China 112$ 10,262$ 10,150$ 9063%
Mexico 646$ 19,340$ 18,694$ 2894%
United Kingdom 2,032$ 42,330$ 40,298$ 1983%
Japan 1,974$ 40,247$ 38,273$ 1939%
India 112$ 2,100$ 1,988$ 1775%
Germany 2,687$ 46,445$ 43,758$ 1629%
United States 4,998$ 65,298$ 60,300$ 1206%
Russia 1,789$ 11,585$ 9,796$ 548%
Source: World Bank, United Nation
Per Capita Income
Major Countries
1970-2020
A 50-Year Picture
11
1.5
1.3 Cellular Subscriptions
One indication of the advancement in the third world countries is the remarkable
gain in communication. Shown below is the percent of third world countries that
have cellular phones. Most of the third world countries shown in the exhibit parallel
the U.S. in the number of cell phones per 100 persons now. In the year 2000, cell
phones were virtually in absentia in these third world countries.
Country 2000 2020 Change %/Change
Viet Nam 402$ 10,755$ 10,353$ 2575%
Iraq 609$ 9,952$ 9,343$ 1534%
Cambodia 300$ 4,441$ 4,141$ 1380%
Bangladesh 412$ 5,139$ 4,727$ 1147%
Afghanistan 197$ 2,073$ 1,876$ 952%
Rwanda 229$ 2,393$ 2,164$ 945%
Thailand 2,028$ 18,073$ 16,045$ 791%
Nigeria 570$ 5,066$ 4,496$ 789%
Egypt 1,643$ 12,719$ 11,076$ 674%
Pakistan 1,675$ 5,160$ 3,485$ 208%
Iran 5,682$ 11,963$ 6,281$ 111%
Source: World Bank, United Nation
(1) Current U.S. Dollars
Gross Domestic Product Per Capita (1)
Selected Third World Countries
2000-2020
12
1.6
Multiple phones may be registered to one household.
1.4 Manufacturing Around the World
China’s remarkable growth over the half century is due largely to its manufacturing
power. It is, by far, the largest manufacturing country in the world, producing almost
twice as much as the United States in terms of manufacturing output, as shown
here:
Country 2000 2010 2019
Thailand 5 107 186
Viet Nam 1 127 141
Cambodia 1 57 130
Indonesia 2 87 127
China 7 63 120
Sri Lanka 2 86 115
Bangladesh 1 46 102
Zimbabwe 2 61 90
Pakistan 1 55 76
Least Developed Countries
(2)1 33 71
Average 2 72 116
United States 39 92 124
(1) per 100 people
Source: World Bank
Mobile Cellular Subscriptions (1)
Economically Improving Countries
2000-2019
13
1.7
The majority of the output is consumed within China to satisfy the wants and needs
of its 1.3 billion population (four times that of the U.S.).
Much of China’s economic success has to do with its ability to raise venture capital.
In most years, venture capitalists raise in excess of $250 billion (U.S. dollars).
1.8
14
1.5 Future Population Changes
As we look around the world, perhaps the most stunning fact is that in the 1990-
2020 period, China will have gained almost a quarter billion people, but in the next
30 years, they will actually lose population as a result of their now abandoned one-
child policy.
India will have a slower rate of growth than in the past 20 years, but by 2050 will
still add one quarter of a billion people in that timeframe.
The long-term slowdown of the China economy is a direct result of the one-child
policy and its effect on minimalizing household formations. The household
formations drive the market for consumer goods and new housing.
And, Russia is slowly dying. The only population gains in Russia are the Chinese
agricultural laborers in the far eastern edge of Russia west of Vladivostok. That
area has proven to be a major agricultural production center, but there are not
enough Russians who want to live in that part of Russia, so the Chinese have taken
over.
Until 25-30 years ago, the ground in Siberia was too hard to cultivate, but since then
climate warming has softened the ground and made it more arable.
1.9
15
Exhibit 1.10 shows the anticipated population change in the four largest countries in
the world:
1.10
The population growth of India will create major challenges in terms of providing
infrastructure, education, health care and, of course, housing.
Factor United States India China Russia
2020 331,003,000 1,380,004,000 1,439,324,000 145,934,000
2050 379,419,000 1,639,176,000 1,402,405,000 135,824,000
Change 48,416,000 259,172,000 (36,919,000) (10,110,000)
Source: World Bank, International Monetary Fund
Comparison of Major Countries
Population 2020-2050
16
Section 2: The National Economy
Although we can be glum about 2020, it behooves us to take a look at the highly
positive economic growth the U.S. has experienced in the past 7-8 years prior to
COVID.
We have been on a roll and a steady roll at that. Starting in 2013, we began a
steady uphill climb, distancing ourselves away from the dismal 2008-2011
recession. It has been a dozen years since Lehmann Bros. and Bear Stearns bit the
dust.
2.1 The Path of the GDP
If the past eight years have been marked by any economic measure, it has been
stability and continuing growth.
2.1
This rate of growth is slower than in the last boom period, but a rapid rate of GDP
growth can lead to recessions.
In this exhibit, the recessions of 2000-2001 and 2008-2009 are highlighted.
17
The low rate of growth has been responsible in part for the low rate of inflation and
the low rates of interest. Had the economy expanded at a more rapid pace since the
2008 recession, both inflation and interest rates would be higher. Perhaps the
present path has contributed to the long term-expansion.
2.2 U.S. Employment Trends
Since the bottom of the decline in 2009 through 2019, the Nation has added more
than 18.0 million jobs, a pace of more than 2.3 million annually, until last spring.
Years Average
1992-2000 3.84
2000-2001 (1)1.37
2002-2003 2.30
2004-2007 2.78
2008-2009 (1)(1.34)
2010-2013 2.05
2014-2019 2.42
(1) Recession
Source Bureau of Econ. Analysis
Annual Change
Gross Domestic Product
United States
2002-2019
18
2.2
The following graph tells the employment story very well:
2.3
As a result of job increases, the unemployment rate plummeted to approximately
4.4% nationally until this past March.
Year Total Annual
Annual
Change
%
2012 134,157 n/a n/a
2013 136,356 2,199 1.6%
2014 138,922 2,567 1.9%
2015 141,804 2,882 2.1%
2016 144,329 2,525 1.9%
2017 146,589 2,260 1.7%
2018 148,891 2,302 1.7%
2019 150,935 2,045 1.5%
2020 149,830 (1,105) -0.8%
Source: U.S. BLS
Total Employment
United States
2012-2020
19
2.4
Then, COVID reared its ugly head and caused an immediate and severe rise in
unemployment. By April, the unemployment rate exploded to almost 15% and then
in the fourth quarter of 2020 receded to the current 6.7%.
20
2.5
On an industry-by-industry basis, the number of persons unemployed in the major
industries totaled more than 8.0 million in December, a stunning loss of more than
4.0 million jobs in the past year.
Month
Unmployment
Rate
March 4.4%
April 14.8%
September 7.8%
October 6.9%
November 6.7%
December 6.7%
Source: U.S. Bureau of Labor Statistics
Not seasonally adjusted
Unemployment Rate
United States
March-December 2020
21
2.6
Initial unemployment claims skyrocketed to more than 6.0 million in April and only
recently has declined to the high 700’s but in recent weeks has expanded again and
in the first week in January increased to 922,000.
Industry 2019 2020 Change
Leisure & Hospitality 685 2,042 -1357
Professional & Business Services 546 1,071 -525
Construction 489 930 -441
Transportation & Utilities 196 627 -431
Educaton & Health Services 604 1,013 -409
Wholesale & Retail Trade 726 1,125 -399
Government Workers 393 692 -299
Manufacturing 422 640 -218
Total 4,061 8,140 (4,079)
U.S. Bureau of Labor Statistics
Persons Unemployed by Industry
United States
December 2019-2020
Week Ending (000)
21-Mar 3,307
28-Mar 6,867
2-May 3,176
25-Jul 1,205
28-Nov 712
January 2 2021 922
% Decline from March 28 88.0%
Source: Bureau of Labor Statistics
(not seasonally adjusted)
Initial Unemployment Claims
United States
22
2.7
The Claims are shown in a graphic form here:
2.8
Ethnicity and Education
Like most recessions, this one has hit hardest on those with the least education and
minorities.
The unemployment rate for Hispanics and Blacks is approaching 10%, almost
double that of non-Hispanic whites and Asians.
23
2.9
The most telling indicator or unemployment rate is education. Those with a
bachelors’ degree or higher have an unemployment rate of below 4.0%, compared
to more than double that with lesser education.
2.10
2.3 U.S Population Trends
The U.S. continues to expand its population and economy. The population
expansion is perhaps the most important element in the expansion of the Nation.
For an industrialized Nation to expand on a continuing basis, it is necessary to
continue to add population.
Ethnicity YE 2019 YE 2020
Non-Hispanic White 3.0%6.0%
Asian 2.4%5.9%
Hispanic 4.1%9.3%
Black 5.6%9.9%
Source: U.S. Bureau of Labor Statistics
Unemployment Rate by Ethnicity
United States
YE 2019-YE 2020
24
From a basic demographic standpoint, it is necessary to have 2.0 children per
every mother and father. If a Nation falls below that level, it faces a long-term
stagnation of its economy as we displayed in Section 1 of this report.
As discussed in Section 1 of this report, we in the United States have fallen below
the 2.0 level, which places us among the population leaders in the industrialized
world. Looking out a few decades, we can see that many of the major Nations are
experiencing only minor population growth and in several cases, decline.
The United States continues to gain population at a pace of 2.0-2.5 million annually,
both recently and projected well into the future. Projections anticipate a very gradual
decline in the rate of annual population gain. Thus, in the 2020-2025 period, the
population gain is projected to decline from 2.63 million annually to 2.57 million
annually.
2.11
The millennial population is driving the gains in population.
Millennials, by Census Bureau definition, are persons 18-34 years of age. They are
the persons with a very high propensity to spend and do form the basis for the
current rise in automobile, housing, household goods and away-from-home eating
and dining.
25
The millennial population is at the heart of the rising economy.
2.9
Having said that, the 65+ population is growing steadily, almost doubling in the next
40 years and approaching 100 million. This demographic phenomena will put
additional strains on Social Security and costs of health care and demand for senior
living facilities.
26
2.10
Changes in ethnicity are also going to change the picture of the Nation’s population.
Both the Asian and Black populations are projected to double in the 2020 to 2060
period, with Blacks only increasing 38% and the Non-Hispanic White population
declining by 9%.
2.11
Ethnicity 2020 2060 Change % Change
Non-Hispanic White 197,309,000 179,162,000 (18,147,000) -9%
Asian 19,505,000 36,815,000 17,310,000 89%
Hispanic 54,878,000 111,216,000 56,338,000 103%
Black 44,075,000 60,690,000 16,615,000 38%
Source: U.S. Census
Population Ethnicity Projections
United States
2020-2060
27
The result of this growth by ethnic group is a picture of a changing face of the
Nation. By 2060, the Hispanic population will increase from 17.4% to 28.7% of the
population while non-Hispanic whites will see its share of the population decline
from 62.5% to 46.2%.
Note that these projections are based on future birth rates and could change
substantially if birth rates decline, particularly In the Hispanic and Black sector of
the population.
2.12
Yet another factor that comes into play in the future of the United States is the
percent of the population that is foreign born.
We typically think of the turn of the 20th century as the high water mark of persons
in-migrating to the United States, and mostly from Europe. Based on a recent
Census Bureau analysis, it appears that within this decade, those who are foreign
born will match the 14.0% of a century ago. Only this time, the foreign born will be
predominantly from Mexico and Asia.
Ethnicity Population %Population %
Non-Hispanic White 197,309,000 62.5%179,162,000 56.7%
Asian 19,505,000 6.2%36,815,000 11.7%
Hispanic 54,878,000 17.4%111,216,000 35.2%
Black 44,075,000 14.0%60,690,000 19.2%
Total 315,767,000 100.0%387,883,000 122.8%
Source: U.S. Census
Population Ethnicity Projections
United States
2020-2060
20602020
28
2.13
2.4 Residential Construction
For multiple reasons, the construction and home sale industries ignored COVID.
Three major factors came into play in 2020.
➢ First was low interest rates:
29
➢ Second was the continued low unemployment rate for those with a college
education (and decent incomes); and
➢ Third, an artificial supply/demand imbalance caused by a severe reduction of
homes on the market for sale (sellers who didn’t want potential buyers
traipsing through their homes during the COVID pandemic).
The year 2020 marked a high point for resale homes in the Nation, a total not seen
since 2006-2007. In 2020, more than 7.0 million resales closed escrow.
30
On the new home side of the ledger, the total number of new single-family homes
permitted continued its six year climb and came close to the million mark in 2020.
Multi-family activity, which includes both sale and rental product, was also strong,
ending the year with more than 400,000 units permitted.
2.1
Year Total
Months
Supply
2015 5,250,000 5.9
2016 5,450,000 5.4
2017 5,510,000 3.9
2018 5,340,000 4.0
2019 5,340,000 3.9
2020 (P)7,200,000 2.5
Soujrce: National Assn. of Realtors
Home Resales
United States
2015-2020
Year Total
Single
Family
Multi-
Family
2015 1,182,600 696,000 486,600
2016 1,206,600 750,800 455,800
2017 1,282,000 820,000 462,000
2018 1,328,800 855,300 473,500
2019 1,386,000 862,100 523,900
2020 1,452,000 977,000 475,000
Census.gov
Residential Building Permits
United States
2015-2020
31
2.5 Non-Residential Construction
A major component of the construction industry is the non-residential sector which
includes both private and public spending. Since 2015, there has been a steady rise
in spending in both the private and public non-residential sector, with a new high in
2019. In 2020, total non-residential private sector construction total reached the
$800 million level. In addition, the public sector spending on construction continued
to expand, ending 2020 with more than $300 billion.
2.11
2.6 The Automobile Industry
For five continuous years, until 2020, new vehicle (cars and light trucks) sales
passed the 17,000,000 level, a feat never achieved before in the United States.
Unfortunately, that run came to an abrupt end in 2020 as a result of COVID. In
2020, new vehicle sales totaled 14,000,000.
32
2.12
Conversely, used vehicle sales continued to expand, closing out 2020 with more
than 41,000,000 million vehicles sold. The only thing holding back the used vehicle
industry was a shortage of inventory. The dominant supply of used vehicles results
from trade-ins for new vehicles and that was muted in 2020. Typically, used vehicle
dealers like to have a two-month supply on hand, but in 2020, it was reduced to one
month.
2.13
Month 000
2015 37,255
2016 38,602
2017 39,204
2018 40,233
2019 40,807
2020 41,000
Source: Bureau of Transportation Statistics
Used Vehicle Sales
United States
2015-2020
33
2.7 Forecast of the U.S. Economy: 2021
With the Presidential election behind us and COVID in the initial stages of control, it
becomes somewhat easier to forecast the economy in 2021 than a few short
months ago.
➢ The population will continue to increase by more than 2.0 million
annually;
➢ Employment will gradually recover, matching the pre-COVID total job
level by year end;
➢ The unemployment rate will fall to 4-5% by year end;
➢ 30-year mortgage rates will remain in the 2.5-3.0% range;
➢ Oil prices per barrel will remain in the $50-60 range;
➢ Construction will parallel 2020, with a total of new 1.4 million
residential units;
➢ The Nationwide demand for new homes and condominiums will
continued unabated;
➢ The resale home market will continue its strong demand throughout
2021 with the inventory of housing for sale gradually expanding in the
second half of the year;
➢ The non-residential construction market will continue to expand
thanks to major increases in infrastructure and military spending; and
➢ Finally, the Federal government will open its purse strings even further
than it did in 2020 and that will increase consumer goods demand.
➢ Overall, 2021 will be a year of recovery, but it may take until 2022 to
return to our classic normalcy.
34
Section 3: The California Economy
In this section is a discussion of the overall economy of the state of California,
including population, employment and housing.
3.1 Gross Domestic Product
California remains the 5th largest “nation” in the world in terms of GDP, barely
passing the UK and France and India.
We like to show these figures to remind us of the enormity of the California
economy.
3.1
Within the United States, California has a GDP equal to almost the entirety of Texas
and New York, although we know that Texas is working diligently to catch up with
the Golden State.
Rank Country GDP (Trillions)
1 United States 20.49$
2 China 13.40$
3 Japan 4.97$
4 Germany 4.00$
5 California 3.20$
6 United Kingdom 2.83$
7 France 2.78$
8 India 2.72$
9 Italy 2.07$
10 Brazil 1.87$
Source: International Monetary Fund
Gross Domestic Product
Top Countries & California
2020
35
3.2
On an annualized basis, the state has been growing its GDP by an average of more
than 5.0% since coming out of the recession. This compared to the U.S. increase in
the 2.0-2.5% range.
We do not have the California GDP growth for 2020, but suspect it is not as robust
as in past years.
3.3
Gross Domestic Product
Top Five States
Year Trillions Change % Change
2015 2,553,772$ 158,610$ 6.6%
2016 2,657,798$ 104,026$ 4.1%
2017 2,819,111$ 161,313$ 6.1%
2018 2,997,733$ 178,622$ 6.3%
2019 3,137,469$ 139,736$ 4.7%
Source: CA Dept. of Finance
Change in Gross Domestic Product
California 2015-2019
36
3.2 Population of California
We had anticipated that California’s population would pass the 40.0 million mark in
2020, but COVID and declining immigration intervened; nonetheless, California
accounted for almost 10% of the Nation’s population gains in the past decade.
Certainly not as robust as in the 1980-2010 timeframe, but acceptable nonetheless.
3.4
Over the past decade, legal immigration to California has slowed down. In 2009,
legal immigration totaled 227,870 compared to 143,664 in 2019, a 43% decline.
3.5
State 1980 2010 2020 1980-2010 2010-2020
California 23,667,902 37,253,956 39,782,870 13,586,054 2,528,914
U.S.226,500,000 308,770,000 335,000,000 82,270,000 26,230,000
% of U.S.10.4%12.1%11.9%16.5%9.6%
Source: U.S. Census & CA DOF
Population Change
California
1980-2020
Year No.
2009 227,870
2015 168,843
2019 143,664
Source: U.S. Citizenship & Immigration Services
Legal Immigration to California
2009-2019
37
The California Department of Finance foresees California expanding its population
much more slowly in the future.
3.6
3.3 California Employment
California remains a mighty job machine.
3.7
In February of 2020 (immediately prior to COVID), California had 18,756,714 million
jobs, a change of 941,000 jobs since 2015 and had been adding more a quarter
million jobs annually (pre-COVID). In fact, the state has been adding more jobs
each year than population.
State 2020 2030 2040 2050
California 39,782,870 42,263,654 43,946,643 44,856,461
2010-2020 2020-2030 2030-2040 2040-2050
Annual Change 252,891 248,078 168,299 90,982
Source: U.S. Census
Projected Population Change
California
2020-2050
Population
State YE 2015 Feb. 2020 Change % Change
California 17,815,446 18,756,714 941,268 5.3%
Texas 12,594,665 13,707,110 1,112,445 8.8%
Florida 9,180,636 10,164,675 984,039 10.7%
Bureau of Labor Statistics
Employment In the Big Three
2015-2020
38
Equally important, all sectors of the economy were growing with Education,
Professional and Business Services and Leisure and Hospitality each gaining more
than 50,000 jobs annually until COVID.
3.8
Overall, the state of California was a job machine until COVID and is gradually
working its way back to prosperity.
3.3 The California Housing Market
It is obvious that California has a housing shortage, at least near the coast. The
Central and Imperial Valleys do not appear to have a shortage of housing.
The permitting activity in residential construction passed the 100,000-unit level in
California in 2016-2019. It appears likely that more than 100,000 units will be
permitted in 2020 as well.
Category 2015 Feb 2020 Total Change
Annual
Change
Education 2,505,500 2,853,800 348,300 69,660
Professional &
Business Services 2,452,400 2,743,200 290,800 58,160
Leisure & Hospitality 1,774,300 2,055,300 281,000 56,200
Government 2,483,500 2,631,800 148,300 29,660
Information 470,400 588,200 117,800 23,560
Financial Activities 781,300 851,700 70,400 14,080
Manufacturing 1,288,200 1,315,700 27,500 5,500
Total 11,755,600 13,039,700 1,284,100 256,820
Source: U.S. Bureau of Labor Statistics
Economic Drivers
California
December2015-February 2020
39
3.9
The supply of new homes available for owner-occupancy in California has
continued to be below demand levels as the owner-occupancy rate continues to
decline and is among the lowest in the Nation at 55%. The National average is
64%.
3.4 Non-Residential Construction
2020 was a very strong year for non-residential construction in California, totaling
almost $40 billion.
Year Total SFD MF
2012 59,638 27,558 32,080
2013 85,472 36,991 48,481
2014 85,844 37,089 48,755
2015 98,233 44,896 53,337
2016 100,265 49,254 51,011
2017 110,000 56,000 54,000
2018 117,079 62,236 54,843
2019 119,985 79,486 40,499
2020 105,925 60,824 45,101
Source: U.S. Census
Residential Building Permits
California
2012-2020
40
3.10
The number of employees in California engaged in non-residential construction is
shown here – a very steady rise:
Source: FRB St. Louis
3.11
We are convinced that California remains an economic juggernaut with its best days
still to come.
Year $ Millions Change % Change
2010 11,200$ n/a n/a
2011 12,991$ 1,791$ 16.0%
2012 14,679$ 1,688$ 13.0%
2013 22,401$ 7,722$ 52.6%
2014 23,706$ 1,305$ 5.8%
2015 26,263$ 2,557$ 10.8%
2016 27,389$ 1,126$ 4.3%
2017 28,873$ 1,484$ 5.4%
2018 33,571$ 4,699$ 16.3%
2019 36,000$ 2,429$ 7.2%
2020 (F)39,000$ 3,000$ 8.3%
Source: California DOF
Non-Residential Construction
California
2010-2019 (F)
41
Section 4: The NAFTA Countries
In Section 4, we focus on doing business with the NAFTA countries and the volume
of cross-border transportation.
4.1 Doing Business with the NAFTA Countries
Mexico and Canada combined remain the top two export countries for California
goods. In the 2016-2019 period, U.S. exports to Mexico increased 11% and 3% to
Canada. Importantly, Mexico and Canada account for almost one-third of
California’s total exports.
The Far East, including China, Japan, South Korea, Hong Kong and Taiwan
combined, account for more than Mexican and Canada combined. The Far Eastern
countries account for 30% of California’s exports.
4.1
Rank Country 2016 Value 2017 Value 2018 Value 2019 Value Increase
2016-
2019
%
Change
1 Mexico 25,260 26,773 30,763 27,965 2,705 11%
2 Canada 16,233 16,843 17,698 16,696 463 3%
3 China 14,323 16,432 16,339 15,848 1,525 11%
4 Japan 11,759 12,830 13,030 11,887 128 1%
5 Korea, South 8,211 9,589 9,975 9,199 988 12%
6 Hong Kong 9,662 12,109 9,906 8,424 -1,238 -13%
7 Taiwan 6,987 6,326 6,831 7,224 237 3%
8 Germany 5,350 6,038 6,592 6,439 1,089 20%
9 Netherlands 5,457 5,785 6,429 6,409 952 17%
10 Belgium 2,956 3,185 2,753 6,341 3,385 115%
11 India 5,129 5,014 6,122 6,341 1,212 24%
12 United Kingdom 5417 5022 5265 5263 -154 -3%
Total U.S 163,261 171,920 178,163 174,026 10,765 6.6%
Far East 50,942 57,286 56,081 52,582 1,640 3.2%
31.2%33.3%31.5%30.2%15.2%
Mex & Canada
as % of Total 41,493 43,616 48,461 44,661 3,168 13.6%
25.4%25.4%27.2%25.7%29.4%
Source: Census.gov, Foreign Trade
Exports from California ($Millions)
Top 12 NAFTA Countries
2016-2019
42
The data for 2020 has not yet been released.
Of the top ten exports, seven fall into the category of technology based, mostly
related to transportation.
4.2 The Baja Influence
The state of Baja California’s population has been growing steadily and has now
surpassed San Diego County. Of the total, 2.1 million live in Tijuana. The population
of Tijuana since 2000 has been growing at a pace of 30,000-40,000 persons
annually, somewhat more than the growth pace of San Diego County.
Rank Product
Value
(Millions)
1 Civilian Aircraft Engines & Parts 7,196$
2 Motor Vehicles 7,153$
3 Industrial diamonds 4,580$
4 Machines for Transmission 4,310$
5 Almonds 3,648$
6 Machines for Mfg. of Semi-conductors 3,579$
7 Petroleum Oils 3,308$
8 Electronic Integrated Circuits 2,953$
9 Composite diagnostic or Laboratory Agents 2,528$
10 Instruments & Appliances for Medical Use 2,477$
Total Exports 174,026$
Source: Census.gov, Foreign Trade
Top 10 State Exports from California
2019
43
4.5
Baja California’s economy is driven by five industries, the largest, by far, is the
maquiladora plants with more than 200,000 employees, more than half of them in
Tijuana. The other four industries are agriculture, tourism, wine, medical tourism
and manufacturing. Manufacturing comprises about 20% of the Baja California
economy.
Medical tourism is typically Americans going to foreign countries for medical
procedures, thereby saving substantial amounts. Several major insurance
companies are now covering operations in countries like Mexico. Tijuana, with its
broad range of surgeons and dentists that are U.S. educated, has become a mecca
for medical tourism.
The manufacturing sector focuses on five areas: aerospace, medical devices,
automotive, electronics and contract manufacturing. Tijuana is the maquiladora
center of Mexico with 570 factories employing 115,000 workers. Reportedly, 50% of
the companies operating in Tijuana have a presence in San Diego County.
The two border crossings (San Ysidro and Otay Mesa) combined are the busiest
land border crossing in the western hemisphere.
San Ysidro Border Crossing
San Ysidro, until COVID, accounted for 15.0 million personal vehicle crossings
annually and more than 10.0 pedestrian crossing. In 2020, personal vehicle and
pedestrian crossings have declined substantially with the greatest loss in pedestrian
crossings.
Year Population Change Year Population Change
1990 811,688 n/a 1990 1,660,855 n/a
2000 1,364,918 553,230 2000 2,487,367 826,512
2010 1,725,140 360,222 2010 3,155,070 667,703
2020 (F)2,099,293 374,153 2020 (F)3,800,000 644,930
Source: World Population Review
Tijuana Baja California
Population
Tijuana & Baja California
1990-2020
44
4.6
Our clients who have retail establishments in San Ysidro report declines in
business of at least 50% and some more than that. The Border Station parking
facility, with 714 spaces, which is typically full on most days, has lost 75% of its
volume since March.
The 905 Port of Entry
The Otay Mesa POE has become the busiest California-Mexico commercial border
crossing with more than $50 billion in goods passing through it annually. Caltrans
projects that by 2030, there will be 900,000 northbound commercial vehicles
passing through the POE.
4.7
Northbound truck border crossings at the Otay Mesa Port of Entry have not had a
significant decline in 2020, but there has been a significant decline in passenger
vehicles.
Category 2018 2019 2020 (1)
Personal Vehicles 14,505,306 14,979,363 8,703,391
Pedestrians 9,435,611 10,799,398 4,011,243
(1) thru September
Source: U.S. Dept. of Transportation
Inbound Traffic
San Ysidro Border
45
4.8
4.3 Tijuana’s Homicide Rate
Tijuana’s major drawback is its homicide rate, now at unprecedented levels,
marking Tijuana as the most violent city in their nation. In the past three years, there
have been more than 2,000 murders each year. Preliminary numbers indicate
2,000+ murders in 2020.
By way of comparison, California, with 20 times the population of Tijuana, had
1,789 murders in 2019. And San Diego had 86 murders in 2019 according to the
San Diego Association of Governments. Notably, San Diego has the lowest crime
rate of any major city in the United States.
Year
Private
Vehicles Trucks
2018 7,708,214 962,577
2019 6,584,442 948,630
2020 (1)3,540,492 678,736
2020 - Projected 4,720,656 904,981
(1) thru September
Northbound Vehicle Crossings
Otay Mesa Port of Entry
2018-2020
Private Vehicles and Trucks
46
4.9
4.10
Year No. Murders Index
2015 670 n/a
2016 910 1.4
2017 1,744 2.6
2018 2,506 3.7
2019 2,185 3.3
2020 (1)2,200 3.3
(1) Projected based on 1st 3 quarters
Source: Baja California Attorney General's Office
Murders in Tijuana
2015-2020
47
Section 5: The San Diego County Economy
In this section, we discuss the population and employment changes in San Diego
County.
5.1 Population Change, San Diego County
It would be nice to have the results of the 2020 Census, but for now the California
Department of Finance and Census Bureau projections will have to do. I have been
appointed to be a Commissioner for the Redistricting Committee (District 5) and our
findings will be based on the 2020 Census.
San Diego County remains one of the most dependably growing metropolitan areas
in the United States, although its growth rate has been slowing down each year for
the past five years.
5.1
The County still has more births than deaths, but has had more out-migration than
in-migration. We don’t know how much of the slowdown in in-migration has been
due to dictates from Washington and we certainly do not know the impact of COVID
on San Diego’s population growth.
Year Population Change
2015 3,280,850 n/a
2016 3,306,090 25,240
2017 3,321,240 15,150
2018 3,333,860 12,620
2019 3,340,312 6,452
2020 3,343,355 3,043
Source:Census.gov
Population
San Diego County
2015-2020
48
5.2
What is certain is that San Diego County is growing older, particularly in the 75+
year component of the population:
Population
2019 3,346,937
2020 3,352,145
Total Change 5,208
Births and Deaths
Births 38,262
Deaths 22,629
Natural Increase 15,633
Net Migration (1)(10,425)
Net Immigration 9,040
Net Domestic Migration (19,465)
(1) natural increase minus total change
Source: CA DOF
Components of Change
San Diego County
2019-2020
49
5.3
Millennials will continue to drive the consumer economy, but the 35-59 year old
cohort will drive the sale housing market. During the next 30 years, the millennial
population of San Diego County is projected to increase by 38,208 or 18%, but the
35-59 year cohort will increase by a projected 118,142.
The 35-59 year age group is responsible for substantial spending on home
furnishings and other big ticket items.
The largest population gain will be folks over age 75, gaining a quarter of a million
population by 2050. This group will drive the demand for retirement communities,
nursing homes and health care.
5.2 Employment and Economic Situation
From 2015 thru 2018, the County’s non-farm employment grew by 30,000+ each
year. There was a noticeable slowdown in 2019, but the County did add more than
20,000 jobs in that year. And then, COVID. In 2020, the County lost 84,900 jobs.
Age Group 2020 2050
Under 20 26%21%
20-34 23%22%
35-59 31%31%
60-74 14%14%
75+6%12%
Source: CA DOF
San Diego County
2020-2050
Population
% of Population by Age Group
50
5.4
And then, most obviously, job growth ground to a halt in 2020 as COVID caused the
economy to falter as can be seen in the following graph:
5.5
From February 2020’s 3.2% unemployment rate, unemployment skyrocketed to
15.0% in April to 15.0% and now has gradually receded to the 6.6% level in
December: Thus, gradually, the total job count has recovered.
Year Employment Change
2015 1,384,800 40,100
2016 1,422,600 37,800
2017 1,452,200 29,600
2018 1,482,200 30,000
2019 1,503,900 21,700
2020 1,419,000 (84,900)
Source: U.S. BLS
Non-Farm Employment
San Diego County
2015-2020
51
5.6
The job losses were not evenly spaced throughout the economy. Far from it. The
Leisure and Hospitality industries suffered the most, actually accounting for more
than half of total job losses.
Month
Total
Employment
%
Unemployment
February 1,514,500 3.2%
March 1,509,148 4.2%
April 1,292,600 15.0%
July 1,350,800 12.4%
September 1,412,000 9.0%
December 1,419,000 6.6%
U.S. Bureau of Labor Statistics
San Diego Economy
February-December2020
52
5.7
And, as usual in recessions, the lowest income jobs had the highest rate of
unemployment.
Change
Category
COVID
March Dec-20
March -
Dec
Total 1,494,000 1,419,000 (75,000)
Leisure and Hospitality 192,900 147,600 (45,300)
Professional & Business
Services 259,500 270,400 10,900
Construction 80,200 84,800 4,600
Trade, Transportation &
Utilities 218,800 220,900 2,100
Manufacturing 117,100 108,800 (8,300)
Education & Health Services 219,600 209,400 (10,200)
Government 252,900 234,900 (18,000)
Source: U.S. Bureau of Labor Statistics
Job Losses/Gains by Category
Wage and Salary Employment
San Diego County
March - December 2020
53
5.8
5.3 Income of the Population
The most recent SANDAG estimates show a median household income of $82,538.
Fully one-third has a household income of more than $100,000. The percent of
the households with an income over $100,000 has increased 29% since the
2010 Census.
54
5.9
5.4 Assessed Valuation
Indicative of the strength of the economy is the continual increase in real property
assessed valuation. Values have typically increased 5-6% per annum, except that
2017-2018 was a particularly bullish year. This year’s assessed values were up
5.2%.
Of particular note is that since the 2014-2015 assessment, real estate values
in San Diego County have increased 50%.
Range 2010 2019 Change %
Less than $30,000 266,457 238,422 (28,035) -11%
$30,000-44,999 153,011 136,343 (16,668) -11%
$45,000-74,999 235,088 233,154 (1,934) -1%
$75,000-99,999 142,638 152,946 10,308 7%
$100,000+289,672 373,166 83,494 29%
Total 1,086,866 1,134,031 47,165 4%
Median 63,586$ 82,538 18,952
% Change 30%
% over $100,000 26.7%32.9%
Source: SANDAG
Number of Households by Income
San Diego County
2010-2019
55
5.10
5.5 Gross Domestic Product
The GDP of San Diego County has grown steadily with average annual gains over
the past several years in the 5-6% range. This is twice the growth rate in the U.S.
economy; however, the San Diego County Association of Governments has
projected that due to COVID that the GDP of the County will lose 4.7% in 2020.
5.11
FY Millions Change % Change
2014-2015 404,699$ n/a n/a
2015-2016 427,932$ 23,233$ 5.7%
2016-2017 451,659$ 23,727$ 5.5%
2017-2018 512,374$ 60,715$ 13.4%
2018-2019 543,681$ 31,307$ 6.1%
2019-2020 574,962$ 31,281$ 5.8%
2020-2021 604,750$ 29,788$ 5.2%
Source: San diego County Assessor
Assessed Valuation
Real Estate
San Diego County
2014-2021
Year GDP Change % Change
2014 201,195,000$ n/a n/a
2015 213,188,000$ 11,993,000$ 6.0%
2016 219,932,000$ 6,744,000$ 3.2%
2017 230,789,000$ 10,857,000$ 4.9%
2018 245,138,000$ 14,349,000$ 6.2%
2019 257,394,900$ 12,256,900$ 5.0%
Source: FRED St. Louis
Gross Domestic Product (GDP)
San Diego County
2014-2019
56
Section 6: The San Diego County Housing Market
In this section is a discussion of the current and future state of the San Diego
County housing market.
6.1 Owner/Renter Tenure
In most of the Nation, the owner/renter tenure is 2/3 owned and 1/3 rent. In some
mid-western states, ownership tenure is more than 70%.
Going back as far as 1980, in San Diego County, the ratio has not changed much. It
is typically 53-55% owned and 44-47% rented.
There is no reason to expect that the San Diego County ownership ratio will
approach the National average, particularly given the local price of housing.
It is important to note that 85% of property owners receive the benefit of Prop.13.
6.1
Year Total Owner Renter Owner Renter
1980 641,188 358,614 282,574 56%44%
2000 994,677 551,461 443,216 55%45%
2010 1,086,865 591,025 495,840 54%46%
2019 1,224,375 650,143 574,232 53%47%
Source: American Fact Finder; Census Bureau, 1980 Census
No. Households % Tenure
Household Tenure
San Diego County
1980-2019
57
6.2 Composition of the Housing Inventory
The current inventory of the County housing market consists of 1,189,341 units, half
of them detached; 16.5% condominiums; 31.2% apartments and 2.2% mobile
homes.
6.2
6.3 Recent and Current Housing Construction
For reasons that are not totally clear, the San Diego housing market was as vibrant
in 2020 as it was in 2019. The multi-family sector was particularly robust.
Type No. %No.MF %% of Total
Mobile Homes 24,864 2.2%24,864 3.0%
Single Family 572,701 50.2%565,033 68.7%
Attached
Duplex or 2 Houses 23,709 2.1%11,893 27.2%1.4%
2-4 Units 57,617 5.0%21,056 48.1%2.6%
5-15 Units 57,400 5.0%7,224 16.5%0.9%
16-60 Units 64,830 5.7%2,213 5.1%0.3%
60+ Units 152,443 13.4%1,355 3.1%0.2%
Total Attached 355,999 31.2%43,741 100.0%5.3%
Condominiums 187,874 16.5%188,474 22.9%
Total 1,141,438 100.0%822,112 100.0%
Note: excludes time-share units
Source: SD County Assessor
Current Housing Units
San Diego County
2019
Units Properties
58
6.3
The multi-family component is mostly rental apartments, with a major segment of
them in downtown San Diego. The unusually large number of rental units being built
downtown resulted from multiple land purchases 2-3 years ago by major national
apartment builders like Trammel Crow, Alliance, Lennar, Pinnacle, Holland, Hanover
and Greystar.
It is highly probable that they did not realize that they would all break ground near-
simultaneously. In 2018-2019, there were more than 4,000 units completed
downtown. The largest rental project is Park 12 with 717 units. That is followed by
Pinnacle’s 450-unit second phase. As we move into 2021, there is another burst of
downtown high-rise rental construction underway, including Trammell Crow’s
JWDA-designed 400-unit high-rise in Little Italy
In addition to the apartment development, there were several hundred for sale
townhome condominiums (which the Census Bureau counts as multi-family). Most
of that production was south of I-8.
Year Total
Single
Family
Multi-
Family (1)
2015 9,893 3,253 6,640
2016 10,669 2,341 8,328
2017 10,415 4,058 6,357
2018 9,788 3,510 6,278
2019 8,082 3,023 5,059
2020 9,447 2,898 6,549
Annual
Avg.9,716 3,181 6,535
(1) includes rental and condominium units
Source: Census.gov
Residential Construction
San Diego County
2015-2020
59
There were also several thousand units of affordable housing developed in the
County in the past year.
It is likely that the 2021 total will be on the same order as 2020.
6.4 Projections for Residential Construction
As we look out over the next few years, we foresee several changes occurring in
the San Diego County housing market once the pandemic has run its course. :
• As a result of a major increase in shovel-ready dirt, predominantly in south
County and in the Rancho Penasquitos area along I-15 and along Highway
78 in north county, there will be a substantial increase in overall developable
land supply in the next few years;
• A number of the new projects will be on the grounds of failed golf courses.
To date, housing communities have been approved on five golf courses. In
addition, the golf course at Carlton Oaks in Santee will be redesigned by
Lennar and rebuilt along with 243 homes.
60
6.4
• There will be a concerted countywide effort to encourage higher density in
urban areas, particularly those within a 20-30 minute drive of downtown San
Diego; however neighborhood resistance will delay the development of these
areas, some indefinitely. Having said that, the state and federal government
may write legislation that takes power away from community groups and
encourages higher densities, particularly near transit lines.
Based on calculations by SANDAG, San Diego County has a housing shortage of
100,000 housing units. Xpera Group is certain that there is a housing shortage, and
it is possible that it is approaching 100,000 units, but even if 100,000 is an
aggressive calculation, there is definitely a shortage, mostly of work force housing –
sale and rental housing appropriate for the mainstream of San Diego households.
The following exhibit documents the projections through fiscal year 2025-2026. It
would be gratifying to project higher levels of residential construction but there does
not appear to be sufficient lands available in the pipeline to generate more units.
Course Status Plan for Future
Escondido CC Closed 2013 148 homes on 24.2 acres
Carmel Highlands Closed 2015
Junipers 536 55+ homes
and 331 Apts.
Stoneridge Closed 2017 160 SFD
Carmel Mtn. Ranch Closed 2018
451 TH, 543 mkt-rate
apts; 78 afforable apts.,
128 combo apts.
Riverwalk Golf Club To Close 2021
4,000+ res'l units and 1.0
MM SF office
Cottonwood Open Sand Mine
San Luis Rey Downs Closed 2014
to become land
mitigation bank & park
Fallbrook Closed 2016 Winery
Auld / Salt Creek Golf Club Closed 2019
Uncertain; Owned by Otay
Water District
Borrego Springs Closed 2020 Uncertain
Recent Closings and Redevelopment
Golf Courses
San Diego County
2013-2020
61
And there is the matter of home pricing. Most of the sale housing is in the
$500,000+ range, substantially out of range for most local homebuyers, especially
first time buyers.
We project an average of 8,000-9,000 new units per year with a slight reduction in
detached production because of our belief that the inventory of lots will gradually
ebb.
And, conversely, we foresee an increase in multi-family production, both for sale
and for rent.
These projections are based on continuing low interest rates. We believe that rates
will remain low because it will be imperative for this new administration to increase
the GDP and rising interest rates would be contrary to that cause.
62
6.5
Year Total
Single
Family
Multi-
Family % MF
2010 3,494 2,270 1,224 35.0%
2011 5,370 2,245 3,125 58.2%
2012 5,687 2,198 3,489 61.4%
2013 8,264 2,565 5,699 69.0%
2014 6,871 2,478 4,393 63.9%
2015 9,893 3,253 6,640 67.1%
2016 10,666 2,341 8,325 78.1%
2017 10,415 4,058 6,357 61.0%
2018 9,788 3,510 6,278 66.7%
2019 8,082 3,023 5,059 66.7%
2020 8,279 2,884 5,395 66.7%
2020-2021 8,000 3,000 5,000 62.5%
2021-2022 8,000 3,000 5,000 62.5%
2022-2023 8,000 2,500 5,500 68.8%
2023-2024 8,000 2,500 5,500 68.8%
2024-2025 8,000 2,500 5,500 68.8%
2025-2026 8,000 2,500 5,500 68.8%
Source: Census Bureau 2010-2020; projections Xpera Group
Residential Construction
Projections thru FY 2026
San Diego County
2010-2020 in Calendar Years
Projections in Fiscal Years
63
6.5 The Price of Existing Housing
The price of existing housing continues to escalate in San Diego County, both for
detached and attached housing. At year-end 2020, the median price of a detached
home was $755,000 and an attached home $496,000.
The prices of resale detached and attached homes increased 15.3% and 14.1%,
respectively.
6.6
The shrinking inventory of existing homes on the market is responsible for the
unusual increase in prices along with the low interest rates.
6.7
Month Detached Attached
2019 655,000$ 435,000$
2020 755,000$ 496,500$
Change 2019-2020 100,000$ 61,500$
% Change 15.3%14.1%
Source: SDAR
Median Home Prices - Closed Sales
December 2019 and 2020
Category Detached Attached
% of Original List Price Received 100.3%99.4%
Days on Market Until Sale 19 21
Months Supply of Inventory 0.9 1.1
Source: SDAR
Existing Homes Sales
San Diego County
Year End 2020
Key Indicators
64
By way of prices, the detached home selling for under $500,000 is quickly fading
away. This past year, detached homes under $500,000 accounted for only 10% of
total detached home sales. Homes priced over $750,000 had a vibrant buyer
reception as did most attached for sale housing.
6.8
6.6 A Longer Term View
There has been substantial press lately on the anticipated explosion of homes on
the market being sold by the ever-increasing over 65 market. In San Diego County,
there is an obvious increase in the number of seniors; however, we can state with
certainty that 85% of seniors die in their current home.
One of the reasons for that is that the County has a virtual absentia of housing for
the senior market. Unlike cities like Tampa, Miami, Palm Desert and Phoenix, San
Diego has a dearth of sale housing aimed at the senior market. Therefore, they will
stay put, unless they need an assisted living facility. And, in that event, if there is a
living spouse, the spouse usually remains in the house.
Based on the 2017 American Community Survey, 19.1% of owner-occupied homes
in the County are owned by persons over age 65. And there are only 21,732 homes
occupied by persons living alone.
Price Range 2019 2020 No.%2019 2020 No.%
Under $500,000 6,378 3,057 (3,321) -52%10,309 8,652 (1,657) -16%
$500,000-750,000 14,424 13,353 (1,071) -7%3,381 3,965 584 17%
$750,000-1,000,000 5,303 5,850 547 10%945 1,086 141 15%
Over $1,000,000 5,811 6,736 925 16%710 847 137 19%
Total 31,916 28,996 2,920 10%15,345 14,550 795 5%
Source: SDAR
No. Homes Change in No. Homes Change in
Homes Sold
by Price Range
San Diego County
Year End 2019 and 2020
Detached Attached
65
6.9
New medical technologies that didn’t exist last decade are keeping more seniors at
home. “Aging in place” has become more commonplace, effectively reducing the
supply of housing.
6.7 Foreclosure Activity
Substantial press has been given to the subject of foreclosures, given the COVID
pandemic and loss of jobs, but the exhibit that follows refutes that situation in San
Diego County.
6.10
Household Type 65+Under 65 Total % Over 65
Family Households 90,658 348,441 439,099 20.6%
Household with Only Male Present 5,168 69,873 75,041 6.9%
Households with Only Female Present 16,564 34,584 51,148 32.4%
Total 112,390 476,754 589,144 19.1%
Source: Census ACS 2017
Owner-Occupied Housing
by Age of Owner
San Diego County
2017
66
Delinquencies (pre-foreclosure) are on a declining path as well, as noted in Exhibit
6.11.
6.11
Source: Realty Trac
67
Section 7: The Future of South San Diego County
Section 6 looks at the future of South San Diego County as an integral part of San
Diego County.
Section 7.1: Population and Housing in the OWD Service Area
The Otay Water District Area encompasses 125 square miles and services an
estimated 225,000 persons. Most of the area served is within the City of Chula Vista
with the balance in the unincorporated area of San Diego County.
7.1
In 2020, the District served 50,000+ customers with potable water and saw the
highest increase in connections compared to the prior seven years. 2018 and 2019
had the highest change, in terms of percent, in any of the past seven years.
68
7.2
The exhibit bellows reports meter sales for the past three years:
Year Customers Change
% Change
from
Previous
Year
2013 48,962 297 0.6%
2014 49,148 186 0.4%
2015 49,308 160 0.3%
2016 49,425 117 0.2%
2017 49,502 77 0.2%
2018 50,045 543 1.1%
2019 50,555 510 1.0%
2020 51,149 594 1.2%
Source: OWD
Customers Served
Potable Water
Otay Water District
2013-2019
69
7.3
7.2 Population and Residential Units in Chula Vista
As Chula Vista is the largest city in South County and the OWD encompasses most
of the City east of I-805, we think it appropriate to note the City’s growth pattern in
recent years.
The following graph outlines the boundaries of the City of Chula Vista. The City
includes the Otay Ranch developable area.
Year Potable Recycled Total
2018 740 11 751
2019 321 7 328
2020 284 11 295
Source: OWD
Meter Sales by Type
Potable Water
Otay Water District
2018-2020
70
7.4
In the following exhibit, the population growth pattern in the years 2000-2019
changed dramatically by time period. There was a major burst of population gain as
a result of the housing boom of the early 2000’s, followed by the major recession of
2007-2009. The recent supply of “shovel ready” dirt has resulted in a steady
increase in annual population since 2015.
7.5
Year Population
Total
Annual
Increase
2015 261,989 2,317
2016 263,332 1,343
2017 265,523 2,191
2018 268,060 2,537
2019 271,411 3,351
Source: Ca Department of Finance
Population
City of Chula Vista
2015-2019
71
As of January 2019, there were an estimated 85,535 residential units in Chula
Vista, an increase of 3,036 units since 2015.
7.6
The persons per household have remained stable at 3.18, according to the
California Department of Finance, Demographics Section.
7.7
Year (1/1)2015 2016 2017 2018 2019
Change
2015-2019
Annual
Change
2015-2019
Single Family 44,990 45,034 45,117 45,211 45,780 790 197.50
2-4 Units 13,100 13,127 13,182 13,242 13,451 351 88
5+ Units 20,344 20,485 21,042 21,692 22,239 1,895 474
Mobile Homes 4,065 4,065 4,065 4,065 4,065 - -
Total 82,499 82,711 83,406 84,210 85,535 3,036 759
Source: Ca Department of Finance
Residential Units
City of Chula Vista
2015-2019
Year Population Housing Units Persons/HH
2015 261,989 82,499 3.18
2016 263,332 82,711 3.18
2017 265,523 83,406 3.18
2018 268,060 84,210 3.18
2019 271,411 85,535 3.17
Source: CA DOF
Persons Per Household
City of Chula Vista
2015-2019
72
7.3 Residential Homes Sales
From 2016 to 2018, the permit count was over 1,000 units in Chula Vista. There
was a major surge of single family construction in 2017 and 2018 as a result of
numerous lots being completed. As those lots produced in that timeframe were
absorbed, the number of single family produced in 2019 declined, awaiting the
development of more lots in 2020, but that didn’t happen.
In 2019, there was a decided slowdown in permit activity in Chula Vista, both in the
single family and multi-family sector. In 2019, only one major apartment project was
permitted.
This past year, there was a dearth of single family production because of a lot
shortage, but multi-family units increased over 2019 because of the sale of
townhomes and construction of two apartment projects.
7.8
Year Total
Single
Family
Multi-
Family % SFD % MF
2010 517 296 221 57%43%
2011 728 394 334 54%46%
2012 799 304 495 38%62%
2013 630 269 361 43%57%
2014 475 156 319 33%67%
2015 689 89 600 13%87%
2016 1,050 86 964 8%92%
2017 1,073 563 510 52%48%
2018 1,882 644 1,238 34%66%
2019 839 282 557 34%66%
2020 1,100 222 878 20%80%
Source: City of Chula Vista & CIRB
Residential Building Permits
City of Chula Vista
2010-2019
73
In 2019 and 2020, Chula Vista’s single family output reduced its share of the
County output, but increased its share of the County’s multi-family output.
7.9
7.4 Resale Home Sales and Prices – South County
The resale housing market in the Otay Ranch remains buoyant. Detached and
attached homes increased each year from 2018 through 2020 with a substantial
increase in 2020.
Year Total
Single
Family
Multi-
Family Total
Single
Family
Multi-
Family Total
Single
Family
Multi-
Family
2010 3,494 2,270 1,224 517 296 221 14.8%13.0%18.1%
2011 5,370 2,245 3,125 728 394 334 13.6%17.6%10.7%
2012 5,687 2,198 3,489 799 304 495 14.0%13.8%14.2%
2013 8,264 2,565 5,699 630 269 361 7.6%10.5%6.3%
2014 6,871 2,478 4,393 475 156 319 6.9%6.3%7.3%
2015 9,893 3,253 6,640 689 89 600 7.0%2.7%9.0%
2016 10,666 2,341 8,325 1,050 86 964 9.8%3.7%11.6%
2017 10,415 4,058 6,357 1,073 563 510 10.3%13.9%8.0%
2018 9,788 3,510 6,278 1,882 644 1,238 19.2%18.3%19.7%
2019 8,082 3,023 5,059 839 282 557 10.4%9.3%11.0%
2020 9,447 2,898 6,549 1,100 222 878 11.6%7.7%13.4%
Source: Census.gov
Residential Permits
Chula Vista & San Diego County
2010-2020 (F)
SD County Chula Vista CV as % of County
74
7.10
Prices in most of the ZIP codes increased 7.0% or more, but not anywhere near as
much as the County increase of 15%:
ZIP Area SFD SFA SFD SFA SFD SFA
91902 Bonita 147 42 157 37 211 57
91910 Chula Vista No.342 133 366 134 483 180
91911 Chula Vista So.347 131 325 144 463 154
91913 Chula Vista Eastlake 391 281 445 317 497 392
91914 Chula Vista NE 162 48 179 54 208 89
91915 Chula Vista SE 271 220 267 253 313 306
92154 Nestor Otay Mesa 280 149 323 171 405 247
Total 1,940 1,004 2,062 1,110 2,580 1,425
2,944 3,172 4,005
Source: SDAR
Closed Sales
Detached & Attached homes
Southern Sector
San Diego County
YE 2020
202020192018
75
7.11
7.5 Future Growth in South County
Since our first OWD forecast in 2013, there has been substantial
commercial/residential activity in the OWD service areas and still much more to
come.
In the exhibit below, we have listed the projects that are in the pipeline or have been
recently completed. Perhaps the most important of these is the substantial supply of
residential shovel-ready land for both single family and multi-family housing.
ZIP Area 2019 2020 Change % Change
91902 Bonita 701,000$ 785,000$ 84,000$ 12.0%
91910 Chula Vista No.560,000$ 601,500$ 41,500$ 7.4%
91911 Chula Vista So.511,999$ 570,000$ 58,001$ 11.3%
91913 Chula Vista Eastlake 610,000$ 655,000$ 45,000$ 7.4%
91914 Chula Vista NE 774,900$ 803,500$ 28,600$ 3.7%
91915 Chula Vista SE 615,000$ 650,000$ 35,000$ 5.7%
92154 Nestor Otay Mesa 520,000$ 580,000$ 60,000$ 11.5%
ZIP Area 2019 2020 Change % Change
91902 Bonita 397,500$ 342,500$ (55,000)$ -13.8%
91910 Chula Vista No.370,000$ 380,000$ 10,000$ 2.7%
91911 Chula Vista So.350,000$ 375,000$ 25,000$ 7.1%
91913 Chula Vista Eastlake 405,000$ 435,000$ 30,000$ 7.4%
91914 Chula Vista NE 416,000$ 454,500$ 38,500$ 9.3%
91915 Chula Vista SE 435,000$ 461,507$ 26,507$ 6.1%
92154 Nestor Otay Mesa 375,000$ 407,000$ 32,000$ 8.5%
SF Attached
Sales Prices
Detached & Attached homes
Southern Sector
San Diego County
YE 2020
SF Detached
76
2020 was a very productive year for south San Diego County. Perhaps the most
notable event was the groundbreaking for the 3.2 million square foot Amazon
distribution center in Otay Mesa. In addition to that event, there were several
other major industrial project underway.
We have divided the projects report into two sectors: Projects that were completed
in the 2017-2020 timeframe and those that are in progress or planned for the next
few years.
In the 2017-2020 timeframe most of the projects completed were transportation-
related. Included here were the completion of the Otay Mesa Crossing, an
expansion of the Cross Border Express, initiation of a 26-mile South Bay Rapid
Transit Bus Route and expansion of the Tijuana Air Cargo Logistics Park.
77
7.12
The following exhibit shows projects that are either under construction or in near-
term planning in the Otay Mesa area.
Time Span
Major
Progress
since last
report
2017-2020
Completed Activity Category
X X
Development of 40-acre Sheriff's Vehicle Operations
Course Employment
X X Sharp Chula Vista completes 197,000 SF tower Medical
X X Shovel-Ready Dirt in ample supply Residences
X X
Sudberry Millenia Common shopping center (130,500
SF) - Now Completed Retail
X X
26-mile South Bay Rapid Transit Bus Route - serving
the Otay Ranch area - Now in Service Transportation
X X
Substantial improvements in the San Ysidro crossing -
Now Completed ($750 Million)Transportation
X X Expansion Tijuana Air Cargo Logistics Park Matrix Transportation
X X
Cross Border Express with major plans for adjacent
properties (2.9 million users in 2019)Transportation
X X
Transfer of SR-125 to CalTrans; Major reduction in toll
fees Transportation
X X
Completion of Mesa de Otay II Port of Entry (20
northbound lanes)Transportation
X X
26-mile South Bay Rapid Transit Bus Route - serving
the Otay Ranch area - Now in Service Transportation
X X
Substantial improvements in the San Ysidro crossing -
Now Completed ($750 Million)Transportation
X X Expansion Tijuana Air Cargo Logistics Park Matrix Transportation
(1) not all projects are within the OWD service area
Projects Completed
Otay Water District Service Area
South San Diego County
2017-2020
78
7.13
2021-2022
Projected
2023-2026
Projected Activity Category
X X
Development of St. Katherine University in
Otay Ranch Education
X Amazon Fulfillment Center Employment
X X
Major commercial development on eastern
side of Tijuana Employment
X X
Employment Growth along SR-125 and
SR and 905 Employment
X
Development of major employment center
on both sides of SR11 (area has 4,000
acres, 40% of County's developable
employment land)Employment
X X Major reconfguration of Otay Town Center Employment & Residential
X X
Near completion of Eastern Urban Center
(Millenia) development - 2,500 units Residences
X X
Sunbow to rezone from industrial to 700
apts. Residences
X X
Build-out of additional housing on Otay
Ranch (20,000+ units)Residences
X X
Build-out of housing on Otay Mesa
(10,000+ units)Residences
X X
Sunroad announced plan to build 3,258
residential units and 765,000 s.f. of
industrial space and 78,000 square feet of
retail space on on its 253 acres - Now in
JV with Majestic Realty Co.; 227,000 SF
of industrial space nearing completion. Residences & Commercial
X X Salvation Army with 120 Beds Residential
X X
Widening of La Media to six lanes btn.
Route 905 and Siempre Viva Rd.Transportation
X Completion of SR-11 Transportation
X X
Widening of I-805 - one additional lane in
each direction, under way Transportation
X
Brown Field commercial traffic expansion;
cargo volume increase Transportation
X Third Border Crossing Transportation
X
Completion of 3 more interchanges on SR-
125 Tollway Transportation
Planned Projects Effecting
Otay Water District
South San Diego County
2021-2026
79
Snapshots: Exhibits of substantial activity near the border appear
below:
Sunroad’s Residential/Commercial Development
7.14
80
Cross Border Express
7.15
Until COVID, CBE was on target to serve 3.0 million in 2020. They intend to go from
four to eight double-stacked booths and spend $20 million on a new parking lot and
more rest rooms. There are also plans to add a hotel and gas station.
RIDA Convention Hotel
In addition to the projects noted above, there is substantial activity on the western
side of Chula Vista, including the $1.1 billion RIDA/Marriott 1,600 room hotel
conference center on the Bayfront. The Center will include a 415,000 square foot
convention center. Groundbreaking is announced for 2021. The OWD does not
serve this area.
81
7.16
Otay Mesa Completion SR-11
The completion of the SR-11 Otay Mesa Crossing is scheduled for 2021-2023.
7.17
82
7.6 Major Development in Otay Mesa Outside the OWD Service
Area
South of the 905 but outside the OWD Service Area are two major residential
projects that will change the face of the 905 corridor: Pardee’s Southwest Village
and Colrich’s Central Village (Epoca).
7.18
Developer Project Locale Acres Units
Unit/Acre
(1)Status
Pardee Southwest Village
No. of 905 on both sides
of Ocean View Hills
Pkwy.472 5,277 15.0
4 projects: Marea (143 units)
and Solmar Sur (108 Units
started in 2020; La Brisa (177
units) starts in 2021 and
Nakano (150 units) starts in
2023
Colrich
Epoca (part of
Central Villlage)
South of 905, west of
Cactus Road 100 2,000 20.0
Projecting for 2022: 1660
Airways Gardens Apts. and
180 Lumina.
(1) buildable areas
Proposed and Under Construction
New Development
Outside OWD Service Area
Otay Mesa/Chula Vista
83
Section 8: Future Development – OWD Service Area
Section 8 addresses the residential and commercial development that will take
place in the Otay Ranch and in the Otay Mesa region that is served by the OWD.
8.1 Ongoing Residential Development
In 2016, there was minimal residential development in the Otay Water District area.
Since then, the area has exploded with new single family and multi-family
development. As a result of “booming” sales, the inventory of new homes for sale
has declined markedly.
At the current time, there are only eight single family detached projects actively
selling and ten multi-family projects. During 2020, 29 projects sold out.
8.1
At the beginning of 2020, there were 47 detached and attached projects
offering product for sale. By year’s end, that number had shrunk to 18 and
only nine projects had more than 20 units remaining for sale.
Detached Detached %Attached %
Sold Out 24 75%5 33%
1-20 Remaining 6 19%3 20%
20-50 Remaining 2 6%7 47%
More than 20 Remaining 32 100%15 100%
Remaining Inventory - Number of Projects
Detached and Attached New Homes
Offered for Sale in 2020
Otay Ranch/Otay Mesa
Year End 2020
84
Pricing of units was slightly higher in 2020 than in 2019. The average price ranges
for attached product was $437,227-519,237 and detached product $731,612-
$801,112.
8.2
Exhibits detailing the inventory of housing is in the Appendix of this report.
8.2 Future Residential Development
Virtually all new residential construction in the OWD service area that will take place
over the next few years will be in the greater Otay Ranch area, although Sunroad’s
East Mesa project has completed their initial industrial project (but not their
residential sector).
Most of that development in the 2021-2026 timeframe will take place in the Millenia
community and in Villages 2, 3, 8, 9 and 10 of Otay Ranch.
Type Low High Low High Low High
Detached 2,538 2,853 731,612$ 801,112$ 288$ 281$
Attached 1,427 2,032 437,227$ 519,237$ 306$ 256$
Source: Steven A. Aranoff Associates
Prices of Remaining Homes
Otay Ranch/Otay Mesa
as of Year End 2020
85
8.3
Although it is difficult to project home sales and apartment construction going out
five or six years, we have contacted the relevant landowners and developers in the
Otay Ranch community and have been able to prepare an exhibit that shows a total
of some 8,000+ units that are anticipated to come on-line in that timeframe. Most of
the future activity is anticipated to take place in 2020 through 2026 and most of it by
HomeFed.
8.3 Four Major Landholders
In this section, we will review the future development plans of the four major Otay
Ranch landholders (Millenia, HomeFed, Baldwin, Jackson Pendo) and then
break out the development by type (sale, rental, etc.). The non-residential
development will be discussed in Section 9.
86
Millenia
Millenia is nearing completion, with the exception of its office lands. The last major
residential project at Millenia is now under construction: the 480-unit Ryan
apartments. That will be complete in 2023.
8.3
HomeFed
HomeFed is the largest owner/developer on the Ranch. Its future plans include both
residential and commercial development.
Community Developer
Open for
Sale 2020 2021 2022 2023 2024 2025 Total
SFD - For Sale
Millenia Lennar - Vibe Jul-20 53 39 92
Millenia Lennar - Cleo Oct-20 42 70 112
Millenia Pinnacle Feb-20 50 36 86
Total 145 145 - 290
Apartments
Millenia Ryan 160 160 160 480
Columbia Chelsea 200 200
Total Apts.- 160 360 160 - - 680
Total 145 305 360 160 - - 970
Source: Meridian Development
Projected Development Activity
Multi-Family For Sale & Apartments
Otay Ranch
2020-2025
Millenia
87
8.4
Area 2021 2022 2023 2024 2025 2026 Total
SFD - For Sale
Village 2 West -
Village 3 (Escaya)177 177
Village 3 - Flatrock -
Village 4 -
Village 8 (W/E)
Cota Vera (1) 30 150 150 150 150 150 780
Village 9 50 50
Village 10 -
Total 30 327 150 150 150 200 1,007
MFA - For Sale
Village 2 West -
Village 3 (Escaya)-
Village 3 -Flatrock
Village 4
Village 8 (W/E)
Cota Vera (1) 75 250 250 250 250 250 1,325
Village 9 200 200
Village 10 -
Total 75 250 250 250 250 450 1,525
Total - For Sale
Village 2 West 0 0 0 0 0 0 0
Village 3 (Escaya)0 177 0 0 0 0 177
Village 3 -Flatrock 0 0 0 0 0 0 0
Village 4 0 0 0 0 0 0 0
Village 8 (W/E)
Cota Vera (1) 105 400 400 400 400 400 2,105
Village 9 0 0 0 0 0 250 250
Village 10 0 0 0 0 0 0 0
Total 105 577 400 400 400 650 2,532
Apartments
Village 2 West -
Village 3 (Escaya)350 200 550
Village 3 - Flatrock 200 200 200 100 700
Village 4 0 0 350 350
Village 8 (W/E)
Cota Vera (1) 300 300 300 300 300 1,200
Village 9 300 300 300 300 300 1,200
Village 10 -
Total 550 1,000 1,150 700 600 600 4,000
Total
Village 2 West 0 0 0 0 0 0 0
Village 3 (Escaya)350 377 0 0 0 0 727
Village 3 -Flatrock 200 200 200 100 0 0 700
Village 4 0 0 350 0 0 0 350
Village 8 (W/E)
Cota Vera (1) 105 700 700 700 700 700 3305
Village 9 0 300 300 300 300 550 1450
Village 10 0 0 0 0 0 0 0
Total 655 1,577 1,550 1,100 1,000 1,250 6,532
% Apartments 84%63%74%64%60%48%61%
(1) may include a 350-lot active senior community
Source: HomeFed
Projected Development Activity
Single Family & Multi-Family For Sale & Apartments
Home Fed
Otay Ranch
2021-2026
88
The newest of the HomeFed development areas is in Village 8 and known as Cota
Vera. Its 285 acres will encompass 1,200 homes and 1,100 apartments as well as
120,000 square feet of commercial space. It is part of Village 8 and will offer homes
starting in late 2021. Its entry is at LaMedia & Santa Luna Street.
Also planned is a Jimmy Buffett Margaritaville Vacation Club in Village 3 North.
Shea and HomeFed are planning a 350-unit retirement project in Village 8 (Trilogy).
HomeFed activity will contain a substantial number of multi-family for rent units. Of
the 6,000+ units projected by HomeFed in Villages 3, 8 and 9, almost two-thirds are
apartments.
Baldwin Sons
Baldwin Sons has been active in Village 4 but also has land in Village 2. In Village
two, they will have 1,200+ homes and apartments. Currently, Baldwin has five
active projects: Monte Villa, Parc Place, Cantamar, Bella Sitia, Suwerte and Alay.
Virtually all are nearing sell out except for Suwerte.
8.5
Baldwin also owns Village 13, a 1,100-acre master-planned community with a total
of 1,938 units and plans for a 150-room resort hotel. The start date for development
of Village 13 is uncertain, but we do include it in our overall projections.
Otay Ranch Village Total DU
DU Permits
Issued
through 2020
DU
Permits
Remaining 2021 2022 2023 2024 2025 2026 Total
Village 2 - SF 384 288 96 36 3 - 57 - - 96
Village 2 - MF 1,702 1,196 506 7 - 193 193 113 - 506
Village 2 - Apt 1,586 597 989 188 334 131 288 48 989
PA12, Freeway Commercial - MF 264 192 72 48 24 - - - - 72
PA12, Freeway Commercial - Apt 580 239 341 - - - 341 - - 341
Resort - SF & MF (Baldwin & Other
Developer)1,938 - 1,938 - - - - - 150 150
Total 6,454 2,512 3,942 279 361 324 879 161 150 2,154
Development Schedule for Permit Issuances
Baldwin & Sons
Development Pipeline
Otay Ranch Development Summary (SF & MF)
February 1, 2021
89
8.6
Jackson Pendo’s Adara (Village 14)
Adara is on the far eastern edge of Otay Ranch and is master-planned for 1,100
homes and a 150-unit apartment project. The timing on development is uncertain,
but we include it in our projections.
90
8.7
8.4 Otay Ranch Future Development by Product Type
The exhibit that follows summarizes the projected development activity in Otay
Ranch. The projections total 8,708 units. Of that total, 1,651 are single family
detached homes, 1,502 attached for sale homes and 5,555 apartment units.
91
8.8
The following exhibits display the projected single family and multi-family for sale
and apartment development activity at Otay Ranch and in adjacent areas:
➢ Single Family Detached Homes
Most of the single family detached homes and townhomes in the 2021-2026 period
will be produced on lots owned by HomeFed, once Millenia is sold out.
Type Developer 2021 2022 2023 2024 2025 2026 Total
Single Family Detached Multiple 80 358 181 180 330 522 1,651
Single Family Attached Multiple 252 250 250 250 250 250 1,502
Apartments Multiple 424 1,777 864 830 830 830 5,555
Total 756 2,385 1,295 1,260 1,410 1,602 8,708
Source: BIA, land owners, builders & City of Chula Vista
2021-2026
Otay Ranch
Projected Development Activity
SFD, SFA & Apartments
92
8.9
➢ Attached Homes for Sale
As with single family detached product, HomeFed’s supply of land for townhomes
will dominate the Otay Ranch.
Community Developer 2021 2022 2023 2024 2025 2026 Total
Villages 2,3,8,9,10 HomeFed 30 327 150 150 150 200 1007
Village 2 Baldwin 50 31 31 30 30 172 344
Millenia Meridian 0 0 0 0 0 0 -
Total 80 358 181 180 180 372 1,351
Village 13 Moeller 50 50 100
Village 14 Jackson Pendo (Adara)50 50 100
Planning Areas 16 &
19 Jackson Pendo (Adara)50 50 100
Villages 13,14, 16,19
(1)- - - - 150 150 300
Total 80 358 181 180 330 522 1,651
(1) development start of 13,14,16,19 uncertain
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
Single Family Detached - For Sale
Otay Ranch
2021-2026
93
8.10
➢ Rental Apartments
In the 2021-2026 period, there are plans projected for more than 4,000 apartment
units. We are uncertain of the market’s ability to absorb 4,000 units, but are
reporting the number provided us by the developers.
Community Developer 2021 2022 2023 2024 2025 2026 Total
Village 8 HomeFed 75 250 250 250 250 250 1,325
Village 2 Baldwin 32 32
Millenia Meridian 145 145
Total 252 250 250 250 250 250 1,502
Village 13 Baldwin - - - -
Village 14 Jackson Pendo -
Planning Areas 16 & 19 Jackson Pendo -
Villages 4,13,14,16,19 - - - - - - -
Total 252 250 250 250 250 250 1,502
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
Multi-Family - For Sale
Otay Ranch
2021-2026
94
8.11
The following exhibit charts these apartments by year:
95
8.12
8.5 Projects Outside Otay Ranch
Outside of Otay Ranch there are numerous for sale and rental properties in the
pipeline.
There are four properties that will move forward with development in the near-term
future: Sweetwater Vistas (Douglas Wilson Co.); Sweetwater Village (KB) and
Aventine (Lennar). They total 433 units.
• Sweetwater Village is now under construction. The 1,854-2,095 square foot
homes are offered at $565,000 to $597,000. This project is nearing sell-out.
• Sweetwater Vistas (i.e. The Pointe) is once again in escrow, this time with a
major national homebuilder. The project will have 218 low density
condominium units.
• Aventine by Lennar will be available for sale in late 2022.
• A fourth project is in the initial planning stage: Sunbow/Olympic Parkway
being planned by Macro-Z for 718 apartments/condominiums. It is currently
zoned for industrial.
Community Developer 2021 2022 2023 2024 2025 2026 Total
Villages 3,4,8,9 HomeFed 75 475 350 650 650 650 2,850
Village 2 Baldwin - - - - - -
Millenia Meridian 160 360 160 - - 680
Total 235 835 510 650 650 650 3,530
Otay Town Center Brookfield - 180 180 180 180 180 900
Total 235 1,015 690 830 830 830 4,430
Source: land owners, builders & City of Chula Vista
Projected Development Activity
Apartments
Otay Ranch
2021-2026
96
8.13
An aerial photograph of Sunbow is shown here:
Project Status Developer Unit Type No. Units
Sweetwater Villas (1)Proposed n/a Townhomes 218
Spring Valley Retail Center (11
Acres) - Aventine
Under
Construction
- 2022 Lennar SFD 92
Sweetwater Place
Under
Construction KB Homes SFD 122
Sunbow/Olympic Pkway. (135 acres)Proposed Macro-Z
Townhomes
/Courtyards 718
Total 1,150
(1) in escrow
Xpera 1.30.2021
Proposed/Under Construction Residential Development
Sweetwater Springs & Sunbow Areas
as of Year End 2020
97
8.14
Apartment Projects Outside Otay Ranch
We have identified ten apartment projects outside Otay Ranch that are in the
pipeline for the next few years. In total, there are 1,604 units. The two largest are
Airway (Colrich) with 454 units and Bayfront by Pacifica with 450 units. The
Bayfront project may be condominiums.
Sunbow
98
8.15
Project Developer Units Completion
230 Church Avenue Silvergate 29 2019
Urbana (385 H St)Mountain West 135 2020
260 Broadway (The Broadway)Silvergate 62 2021
Airway Colrich 454 2022
Bonita Glen Silvergate 170 2022
The Colony Condominiums n/a 162 in planning
305 E Street n/a 52 in planning
Bayfront (1)Pacifica 450 in planning
3rd & E Streets Tierra del Mar 48 in planning
1350 Industrial Blvd.n/a 42 n/a
Total 1,604
(1) may be condominiums
Apartments & Condominiums
In Planning, Under Construction and Completed
Urban Chula Vista & Western Otay Mesa
as of January 2021
99
Section 9: Non-Residential Development
There are several non-residential projects within the OWD service area (and
nearby) that are in the pipeline for the near future that will result in demand for more
water.
We will review the retail, hotel, office and industrial markets and projects:
➢ Retail Space
Surprisingly, given the pandamic’s effect on in-store spending, the retail space
market in South County is very strong with an overall vacancy rate of 3.9% at the
end of 2020.
9.1
Newly completed are Sudberry’s new Millenia Commons shopping center and
Baldwin’s Suwerte. The Sudberry project, with 130,000 square feet, contains four
“big box” stores and adjacent in-line stores.
The Baldwin Suwerte project is a multi-product project with approximately 12,000
square feet of retail space. It is nearing completion.
Area
Sq.Ft. - Total
Inventory Vacancy Rate
General Retail 6,247,796 2.4%
Malls 2,361,383 0.0%
Power Centers 953,026 1.8%
Shopping Centers 9,253,746 6.2%
Specialty Centers 7,597 2.4%
Total 18,823,548 3.9%
Source: Voit
YE 2020
Retail Space
South County
as of Year End 2020
100
A third center, The Shoppes at Escaya, with 20,272 square feet, is now complete.
There will be several smaller centers that will be built within the Otay Ranch as the
Villages get built out, but none yet has been announced.
In future years, HomeFed has plans for a total of 130,000 square feet, including a
90,000 square foot center in 2024. Plans for the 90,000 square foot center are not
formalized.
9.2
The retail market is considered strong, but there are two regional centers in south
county that have not done well. One is Otay Town Center and the other the Chula
Vista Center in downtown Chula Vista.
Both are owned by Brookfield. The Otay Town Center will close down with the
exception of the Macy’s store (which Brookfield/Simons owns) and build 900
apartments on the site. The Sears in the Chula Vista Center has been shuttered
and Brookfield (the owner) intends to build apartments there.
Those are two of the four regional centers that have recently failed in San Diego
County. The other two are Horton Plaza in downtown San Diego and Parkway
Plaza in El Cajon. Campus at Horton (Stockdale) will include 700,000 of office
space and 300,000 square feet of retail space.
Year Sq.Ft.
2020 10,000
2021 -
2022 15,000
2023 15,000
2024 90,000
2025 -
Total 130,000
Source: HomeFed
Retail Space Development
HomeFed
2020-2025
(Projected)
101
➢ Hotels
There are several hotels that have come on-line and have opened for business in
the past two years.
The first two entries are Ayres with 135 rooms and a Residence Inn with 148 rooms,
both near the 125 at Olympic Parkway. A Hampton Inn and Homewood Suites were
completed in 2019. Baldwin is planning a Courtyard by Marriott with 153 rooms and
a 179-room Homewood Suites by Hilton has opened at the corner of Showroom
Place and Fenton Street. Baldwin is also planning a 200-room resort in Village 13.
9.3
➢ Office Space/Flex Space
Office space is not a major factor in the south County commercial market, totaling
barely 1.0% of the San Diego office marketplace. The overall vacancy rate for office
space in Chula Vista/Otay Mesa is 3.4%.
Flex/R&D space in south County totals 2.0 million square feet and accounts for
4.0% of the County’s total Flex/R&D space. The south County vacancy rate is 8.7%.
Hotel Address Rooms Completion
Residence Inn 2005 Centerpark Rd.148 2018
Ayres 1710 Millenia Avenue 135 2019
Hampton Inn 2424 Fenton St.104 2019
Homewood Suites 2424 Fenton St.91 2019
Marriott Homewood Suites -
Eastlake - Spectrum
Development Showroom Place & Fenton St.179 2020
Courtyard
Olympic Pkway & Town Center
Drive 153 2022
Village 13 Resort Village Village 13 200 2025-2030
Hotels In Planning, Under Construction and Completed
Otay Ranch
as of January 2021
102
9.4
The major office development that is actively planned is the “Millenia Office” – a
project that could ultimately have more than 1.0 million square feet of space. The
project is by Chesnut Properties, a local firm that has substantial success in other
parts of the County.
The first Chesnut project is 318,000 square feet of Class “A.” Reportedly, but not
confirmed, construction will begin in mid-2021.
There is no office space under development at the current time in Otay Mesa or
Otay Ranch or the City of Chula Vista.
➢ Industrial Space
Planned and Active Industrial Development
The industrial space market in San Diego County is experiencing its strongest
occupancy rates in recent memory with a County wide vacancy rate of 4.4%.
The total inventory of industrial space is 146 million, one-fifth of it in South County
and half of the South County space in Otay Mesa.
Most of the square footage under construction is in Otay Mesa. Amazon’s new
fulfillment center accounts for more than 50% of total industrial space construction
in the County.
Area Sq.Ft.Vacancy Rate Sq.Ft.Vacancy Rate
Otay Mesa 156,362 17.4%187,078 n/a
South County 2,076,390 8.7%319,824 3.4%
San Diego County 50,795,626 85.7%105,581,136 12.3%
OM/SC as % of SD Co.4.09%0.30%
Source: Voit
Flex & R&D Office
Office Space & Flex R&D Market
Chula Vista/Otay Mesa and San Diego County
as of Year End 2020
103
9.5
The following exhibit notes the individual major projects in planning, under
construction and in the pipeline in Otay Mesa:
9.6
Looking to the future, it is highly likely that the Amazon project will become a
mecca for firms that provide goods to Amazon, thereby creating a major
demand for more industrial space near the Border.
Area
Sq.Ft. - Total
Inventory Vacancy Rate
Otay Mesa 16,341,479 6.3%
South County 30,002,113 5.4%
San Diego County 146,112,872 4.4%
Otay Mesa as % of Co.11.2%
So. Co. as % of Co.20.5%
Source: Voit
Industrial Space
Chula Vista & Otay Mesa
as of Year End 2020
YE 2020
Project Developer Sq.Ft.Acres
Amazon Fulfillment Ctr.Seefried 3,200,000 65.0
Otay Crossings Kearny Real Estate 150,000 31.0
Copart Auto Auction @ Brown Field n/a 50.0
Piper Otay Phelan 350,000 24.8
Otay River Business Park Sudberry 409,500 33.5
8150 Airway Rd.Rockefeller Group 135,623 7.8
Vogt Industrial Park IRE Development 100,214 n/a
Majestic Sunroad Center Sunroad 227,268 n/a
California Crossings n/a 453,330 n/a
Gateway Energy Storage LS Power n/a n/a
Total 5,025,935
Industrial Projects
Planned or Under Construction in Otay Mesa
2021-2023
104
Section 10: Projections for OWD Development
Activity 2021-2027
In this section, we discuss the projections for both residential and non-residential
development in fiscal years 2021-2027.
10.1: Residential Development Projections
We are confident that the next few years will be unusually vibrant on the Otay
Ranch as the major landholders will continue to develop shovel-ready lots. Better
yet, we anticipate that the market for the product developed there will be well
accepted, as it represents a wide range of product types and prices/rents.
For definition’s sake, we are assuming that “for sale” multi-family product will be
townhomes or other varieties of attached for sale product.
The rental product is assumed to be multi-story flats, but, at some point, developers
may produce “for sale” flats – i.e. vertical condominiums.
In the projection below, we anticipate that most of the development in the OWD
service area will be in the Otay Ranch. Having said that, there are four projects that
could surface during our 2021-2027 period: those four are Village 13 and 14, Salt
Creek and the Sunroad East Otay Mesa project.
It is important to note that in this year’s projections, HomeFed’s and Baldwins latest
projections call for a heavy concentration of apartments. Similarly, the Sunroad
project is anticipated to have a substantial share of their units as rentals.
Note that in Exhibit 10.1, the total number of units projected is somewhat less
than what is projected by the developers. We are under the impression that
the developer projected number is higher than the market can absorb and will
not be built on their schedule.
Should the developers’ projections and our net projections prove accurate,
developers will produce far more units than the City of Chula Vista will have
produced annually in the 2010-2020 period.
In the exhibits below, we have prepared projections for detached and
attached “for sale” housing and rental apartments. The number of units
105
projected are approximately the same as last year, with the exception of 2021-
2022 which over-projected apartment construction.
10.1
In the projections, we have placed a heavier weight on the multi-family market, for
two reasons: first, apartment developers have a growing appetite for Otay Ranch
product and, second, townhomes will prove to be the most affordable sale product
on the Ranch and therefore most popular with young families.
The land prices in the OWD service area and government fees are most often
substantially less than in the more urban areas of the County, making it highly
attractive to multi-family developers.
We also recognize that the ebullience of the economy may fade somewhat in a few
years and interest rates may climb. Either of those events would soften the market
for sale product but perhaps not for rental product.
Fiscal Years:20
2
1
-
2
0
2
2
20
2
2
-
2
0
2
3
20
2
3
-
2
0
2
4
20
2
4
-
2
0
2
5
20
2
5
-
2
0
2
6
20
2
6
-
2
0
2
7
To
t
a
l
Av
e
r
a
g
e
Detached - For Sale
Otay Ranch 100 200 300 250 250 250 1,350 225
Outside Otay Ranch 60 60 60 40 - - 220 37
Total Detached 160 260 360 290 250 250 1,570 262
Attached - For Sale
Otay Ranch 200 300 300 300 300 300 1,700 283
Outside Otay Ranch 100 150 150 150 150 700 140
Total Attached 200 400 450 450 450 450 2,400 400
Total For Sale 360 660 810 740 700 700 3,970 662
Apartments
Otay Ranch 250 600 600 500 500 500 2,950 492
Outside Otay Ranch 200 200 200 200 200 1,000 200
Total Apartments 250 800 800 700 700 700 3,950 658
Total 610 1,460 1,610 1,440 1,400 1,400 7,920 1,320
% For Sale 59%45%50%51%50%50%50%50%
% For Rent 41%55%50%49%50%50%50%50%
Residential Development Projections
Otay Water District Service Area
Fiscal Years 2021-2027
106
Comparison of last year’s to this year’s projections:
The differences between last years and this year’s report are primarily due to over-
ambitious projections by apartment developers. We now realize that it is unlikely
that the number of apartment units projected in last year’s report for 2022-2026 will
not be achieved unless Sunbow, Sunroad and HomeFed are more aggressive than
we think they will be.
In the single family sector, in the 2023-2026 timeframe, it is likely that, if the
strength of the market continues, that it will be possible to sell the number of units
projected in last year’s report, but this year’s projections are probably more realistic.
10.2
10.2 Non-Residential Product
Projecting non-residential development in the OWD service area is not as precise
as the residential sector, as it remains largely untested for most product.
For instance, the Chesnut office development, which could have as much as
1,000,000 square feet of office space, may break ground in 2021 with its first phase.
Fiscal Years:20
2
0
-
-
2
0
2
1
20
2
1
-
2
0
2
2
20
2
2
-
2
0
2
3
20
2
3
-
2
0
2
4
20
2
4
-
2
0
2
5
20
2
5
-
2
0
2
6
20
2
6
-
2
0
2
7
To
t
a
l
Single Family for Sale
2020 Report 160 260 360 290 250 250 1,570
2021 Report 160 260 360 290 250 250 1,570
Attached for Sale
2020 Report 200 400 450 450 450 450 2,400
2021 Report 200 400 450 450 450 450 2,400
Apartments
2020 Report 482 790 1,500 1,200 1,000 1,000 5,972
2021 Report 250 800 800 700 700 700 3,950
Total
2020 Report 842 1,450 2,310 1,940 1,700 1,700 9,942
2021 Report 610 1,460 1,610 1,440 1,400 1,400 7,920
2021-2027 Projections
With Comparison of 2020 Report
Otay Water District Service Area
FY 2020-2027
107
We have allocated minimal office space other than the Chesnut project as we are
very uncertain of demand.
HomeFed has planned 90,000 square feet of retail space for 2024-2025 and, like
office space, we are uncertain of demand.
We have assumed that University Village will move forward in this timeframe, if St.
Katherine’s University moves forward with its plan.
We are confident that there will be one or two new hotels developed in Otay Ranch
in the next few years in addition to the resort hotel in Village 13.
We, of course, have not included the RIDA Hotel and Conference Center in
Bayfront as it is not in the OWD service area, although most certainly will happen in
2020-2021.
Until recently, the vacancy rate in industrial space on the Otay Mesa was 15%+
and has now edged down to the 5% range. Most of the development there is large
one-story boxes that, in some cases, have been segmented into smaller incubator
spaces.
We are taking a fairly aggressive approach to industrial development in the 2021-
2026 timeframe, anticipating some 2.0 million square feet of space coming on-line
and, of course, the Amazon space will be completed within the next year.
During the next five fiscal years, without Amazon’s square footage, the non-
residential square footage is projected to total 2,500,000.
108
10.3
<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>
On balance, we are convinced that the next several years will be highly active
ones for the residential and commercial development community in the Otay
Ranch/Otay Mesa region. As a result, the Otay Water District will experience a
substantial increase in customers and usage.
Fiscal Years:Measure 20
2
1
-
2
0
2
2
20
2
2
-
2
0
2
3
20
2
3
-
2
0
2
4
20
2
4
-
2
0
2
5
20
2
5
-
2
0
2
6
20
2
6
-
2
0
2
7
Total
Hotels (2)Rooms 0 0 125 125 150 150 550
Sq.Ft./Room (Gross)400 400 400 400 400 400 2,400
Total Sq.Ft.- - 50,000 50,000 60,000 60,000 220,000
Industrial (1)Sq.Ft.500,000 400,000 400,000 400,000 400,000 400,000 2,500,000
Amazon 3,200,000 3,200,000
Retail Sq.Ft.- - 20,000 90,000 15,000 15,000 140,000
Office (3)Sq.Ft.- 150,000 150,000 15,000 15,000 15,000 345,000
Total Sq.Ft.3,700,000 550,000 620,000 555,000 490,000 490,000 6,405,000
Total Sq.Ft. w/o
Amazon 500,000 400,000 400,000 400,000 400,000 400,000 2,500,000
(3) Assumes 1st phase of Chesnut project is completed in 2023+2024
Non-Residential Development Projections
Otay Water District Service Area
Fiscal Years 2021-2027
(1) excludes renovation of Sanyo space. And excludes Amazon.
(2) excludes the 1,600 room RIDA Hotel and Conference Center which is not in the OWD service area; the hotel in 2025-2026 is in Village 13.
109
110
Appendix
Housing Type
Project Name Developer Detached
Units
Sold
Units
Remaining
Sq.Ft.
Low
Sq.Ft.
High Price Low Price High
Cambria Cornerstone Communities 60 60 0 2,691 3,063 700,990$ 715,990$
Suwerte Heritage Building & Development 96 96 0 1,192 2,439 382,900$ 528,900$
Alay Heritage Building & Development 77 77 0 1,938 2,505 549,900$ 629,900$
Solmar Pardee Homes 83 83 0 1,310 1,915 426,000$ 526,500$
Monterra Cornerstone Communities 36 36 0 1,573 1,828 452,990$ 503,990$
Parc Place Pacific Coast Communities 159 159 0 1,116 1,587 412,900$ 489,000$
Tosara Pacific Coast Communities 164 164 0 1,635 2,366 445,900$ 501,900$
Z Shea Homes 106 106 0 1,288 1,475 398,000$ 435,000$
Indigo Lennar Homes 111 111 0 1,950 2,165 568,900$ 594,900$
Sierra Shea Homes 122 122 0 1,833 2,179 544,000$ 578,000$
Valencia Lennar Homes 118 118 0 1,988 2,314 616,500$ 662,000$
Prado Brookfield Residential 130 130 0 2,289 2,565 611,880$ 648,880$
Seville Shea Homes 135 135 0 2,498 2,905 649,000$ 691,000$
Castellana Lennar Homes 77 77 0 2,902 3,176 668,000$ 698,000$
Haciendas Brookfield Residential 76 76 0 3,138 3,704 708,000$ 759,000$
Flora Brookfield Residential 107 107 0 1,278 1,710 408,000$ 463,000$
Veraz Pardee Homes 111 111 0 1,340 2,005 449,950$ 521,000$
Tesoro Cornerstone Communities 105 105 0 1,410 1,600 440,990$ 471,990$
Esperanza Cornerstone Communities 99 99 0 1,548 1,830 389,990$ 447,990$
Pinnacle Meridian Development 90 90 0 1,362 2,522 467,900$ 626,900$
Vibe Lennar Homes 50 50 0 1,681 2,037 489,900$ 541,900$
Cleo Lennar Homes 36 36 0 1,182 1,675 381,900$ 468,900$
Marea Pardee Homes 19 19 0 1,321 1,875 409,990$ 484,990$
Signature Heritage Building & Development 79 79 0 3,340 3,611 980,900$ 996,900$
2,246 2,246 0 1,825 2,294 523,141$ 582,772$
Aventine Cornerstone Communities 100 95 5 2,014 2,438 607,990$ 639,990$
Cantamar Pacific Coast Communities 111 100 11 2,631 2,896 738,900$ 788,900$
Monte Villa Pacific Coast Communities 103 91 12 1,948 2,321 613,900$ 705,900$
Estancia Cornerstone Communities 37 25 12 3,409 3,901 877,990$ 959,990$
Presidio Otay Ranch New Homes 82 69 13 2,571 2,623 N/A N/A
Bella Sitia Pacific Coast Communities 68 52 16 3,657 4,300 952,900$ 1,052,900$
Anacapa Otay Ranch New Homes 60 34 26 2,221 2,249 N/A N/A
Sweetwater Place KB Home 122 91 31 1,854 2,095 630,990$ 658,990$
683 557 126 2,538 2,853 737,112$ 801,112$
Source: Steven A. Aranoff & Associates
New Residential For Sale Projects
San Diego County
YE 2020
Square Foot Range Base Price Range
Detached
111
Project Name Developer Attached Units Sold
Units
Remaining Sq.Ft. Low Sq.Ft. High Price Low Price High
Monterra Cornerstone Communities 36 36 0 1,573 1,828 452,990$ 503,990$
Z Shea Homes 106 106 0 1,288 1,475 398,000$ 435,000$
Flora Brookfield Residential 107 107 0 1,278 1,710 408,000$ 463,000$
Veraz Pardee Homes 111 111 0 1,340 2,005 449,950$ 521,000$
Esperanza Cornerstone Communities 100 100 0 1,548 1,830 389,990$ 447,990$
460 460 0 1,405 1,770 419,786$ 474,196$
Alay Heritage Building & Development 80 77 3 1,938 2,505 549,900$ 629,900$
Parc Place Pacific Coast Communities 162 159 3 1,116 1,587 412,900$ 489,000$
Tosara Pacific Coast Communities 173 164 9 1,635 2,366 445,900$ 501,900$
Tesoro Cornerstone Communities 134 105 29 1,410 1,600 440,990$ 471,990$
Pinnacle Meridian Development 126 90 36 1,362 2,522 467,900$ 626,900$
Vibe Lennar Homes 92 50 42 1,681 2,037 489,900$ 541,900$
Cleo Lennar Homes 117 36 81 1,182 1,675 381,900$ 468,900$
Suwerte Heritage Building & Development 184 96 88 1,192 2,439 382,900$ 528,900$
Solmar Pardee Homes 185 83 102 1,310 1,915 426,000$ 526,500$
Marea Pardee Homes 142 19 123 1,321 1,875 409,990$ 484,990$
720 284 516 1,337 1,988 418,138$ 510,238$
Source: Steven A. Aranoff & Associates
New Residential For Sale Projects
San Diego County
YE 2020
Square Foot Range Base Price Range
Attached
112
Xpera Group, a Vertex Company, is the West Coast’s most comprehensive team
of construction consultants and strategic advisors for the built environment. Having
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over the years to deliver specialized expertise to clients at all phases of the
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The Vertex Company is a 700+ employee construction and real estate consulting
firm based in Boston. Xpera Group became part of Vertex in 2020. (Vertexeng.com)
113
Disclaimer
Although the results, conclusions and recommendations contained within this consultant’s report are based
upon a thorough review and analysis of current competitive market conditions and the expertise of the author,
Consultant does not in any way represent, warrant or guarantee that any reported results will be achieved as a
result of various reasons, including but not limited to the sensitivity to ever-fluctuating market conditions and the
efficiency of a Client and its representatives, agent, employees, successors and assigns.
STAFF REPORT
TYPE
MEETING: Regular Board
MEETING
DATE: April 7, 2021
SUBMITTED
BY:
Jose Martinez
General Manager
W.O./G.F.
NO:
N/A DIV.
NO.
N/A
APPROVED BY: Jose Martinez, General Manager
SUBJECT: General Manager’s Report
GENERAL MANAGER
•District’s Response to COVID-19 Pandemic – As a result of the
COVID-19 pandemic emergency declarations and the social distancing
orders have resulted in a portion of the District’s staff
telecommuting, the District has had no impacts to its water supply
and has maintained a continuity of operations and services during
the challenging and dynamic environment. Staff continues to
monitor and provide updates as needed relating to responding to
this pandemic, including but not limited to: water and wastewater
services, supplies, operations, finances, and communication.
The District is continuing to hold Board of Directors meetings via
teleconference services which provides public access to the
meetings.
The District remains committed to the safety of the public and its
employees who continue to provide the public with essential
services. A Safe Reopening Plan and a Social Distancing and
Sanitation Protocol have been implemented and are updated in
accordance with county health guidelines including the recent
emergency regulations discussed in this report. Staff will continue
to monitor and comply with all Federal, State and Local orders and
guidelines.
The District continues to advocate for and communicate COVID-
related funding relief to those customers adversely affected by the
pandemic as a result of the restrictions imposed by Proposition 218
which restricts the ability of water suppliers to utilize rate
revenue for delinquency forgiveness or relief.
AGENDA ITEM 11
2
• District Nomination for the Chula Vista Community Champion
Recognition Award - The District was recently recognized as a Chula
Vista Community Champion by the City of Chula Vista. The District
was nominated for its extraordinary efforts during the COVID-19
pandemic and selected by a committee to receive this
recognition. Nominations are kept confidential. This recognition
demonstrates that the District continues to work diligently to
ensure basic public services are met. The celebration was held
virtually. A video about the Chula Vista Community Champions can be
viewed here: https://youtu.be/BvxftG6PnpE. The video celebrates the
amazing accomplishments of those who live, work, and play in Chula
Vista and have gone above and beyond for their neighbors and
community during these challenging times.
ADMINISTRATIVE SERVICES:
GIS:
• GIS Server Migration – With the migration to the new Dell
enterprise computing platform for all District business servers,
staff prepared, backed-up, and transferred all test, development,
and production instances of GIS server and dependent applications,
including the District’s operational dashboard. The new computing
environment will improve GIS application performance, reliability,
security, and emergency recovery. The new Dell platform also
provides a lower cost of ownership. All the migration work and on-
going maintenance will be conducted by District staff.
Human Resources: • COVID–19 Vaccine – As part of the state’s effort to vaccinate
critical infrastructure and emergency workers, the District worked
with the City of Chula Vista (City) to secure COVID-19 vaccines for
its employees. On March 15th, representatives from the City
vaccinated District employees with the Johnson & Johnson, single
dose vaccine. In addition, the District is aware other employees
have also obtained the vaccine on through other opportunities.
• Employee Training and Development - The District is excited to
kick-off the Franklin Covey online training portal, which is
scheduled to begin in early April. Franklin Covey is leadership,
individual effectiveness, and business execution training provider.
This training will be offered to senior/lead employees, management,
and Executive Team. The District will begin with weekly assigned
training objectives from the “Seven Habits Foundations”. Employees
will also have the complete curriculum to work through on their
own, and the District will schedule periodic progress check-ins
with employees.
3
• Deferred Compensation Committee - The Committee met on March 18th to
review the performance of the District’s 401(a) and 457 Plans
(2020, 4th quarter). Overall, the funds are performing well.
Additionally, since the Vanguard Target Retirement Funds reached
the $5 million mark, participants in those funds will get a lower
fund cost. A notice to those participants will be sent. During the
meeting, it was noted that on average the employees pay .25 percent
fees as opposed to the industry average of 1.04 percent fees. This
does not include the .155 percent fee paid to the provider in
either of the statistics.
o Recruitments/New Hires/Promotions - The District is or will be
recruiting for the following positions:
o Accountant
o Chief, Water Operations
o Construction Inspector I/II
o Safety and Security Specialist
o Senior Warehouse Worker
o Utility Worker I/II
IT Operations:
• Tyler Eden Upgrade - Staff performed a functional update to the
District’s Financial and Budgeting System, Tyler Eden. The update
(5.24.1) provides minor enhancements and necessary patches
associated with various Eden financial modules, including updates
to new-year tax codes, Accounts Payable (A/P) module, and Utility
Billing (UB) functionality.
Purchasing & Facilities:
• Administration and Operation Gate Motor Replacements – With over 20
years of service and increasing service calls, the gate motors have
reached their end of useful life. Staff carefully researched “high-
speed” gate openers and chose HySecurity SlideSmart HD15F with
open/close speeds of 2.25/1.75 ft/second vs. the current 1
ft/second. A request for quotes resulted in 4 submissions with
Aztec Fence Co. Inc. (Aztec) submitting the lowest to replace 9
gate motors (5 gates), install new gate wheels and guides, update
safety devices per UL 325 industry standards, update the Opticom
Strobe Detectors and include 2-years of quarterly service
visits. Aztec is the District’s current go-to fence and gate
contractor.
4
FINANCE:
• Collections and Bad Debt Exposure: Below is information that shows
lockable accounts and differentiates Owner accounts from Tenant
accounts. While the District collects a portion of these balances,
it is less likely to collect the tenant account balances that have
become lockable. This balance is being monitored on a weekly basis
to assess the potential bad debt exposure.
Collections and Bad Debt Exposure
# of Accounts $'s
March
2020
(31
Days)
February
2021
(28 Days)
March 2021
(22 Days)
FY 2020
End of
Year
Lockable
Lockable Balances as of
March 2021 (22 Days)
FY 2020
Remainder
FY 2021
Lockable Total
Lockable
Accounts
Owner 129 732 591
$205,805
$39,427
$285,633
$325,060
Tenant 147 562 594
$158,471
$37,475
$264,622
$302,097
Total 276
1,294
1,185
$364,276
$76,902
$550,255
$627,157
Typical
Monthly
Values 200
Actual
Sales
$40,861,103
$68,652,880
Percent
of Bad
Debt
Exposure 0.19% 0.80%
FY2021 Waived
Penalties
$621,794
Lockable $'s From
Recycled Accounts
$-
$3,494
There is one lockable recycle account.
Note: Prior to the COVID-19 pandemic the lockable balance
was $48,500.
5
• FY 2022 Budget – Staff is continuing its efforts to prepare the FY
2022 budget. The tentative budget calendar for the Board is
consistent with the FY 2021 budget with the Economist report being
presented at the April Board meeting, followed by a Board budget
workshop scheduled for April 28th, and a final Budget presentation
at the June Board meeting.
• Property, Cyber, and Excess Crime Insurance Renewal – The District
is a member of the ACWA Joint Powers Insurance Authority (JPIA) and
participates in various insurance programs including Property,
Liability, and Workers Compensation. The District completed the
renewal application for Property, Cyber, and Excess Crime Insurance
and submitted those to ACWA-JPIA in anticipation of a July 1, 2021
renewal. Renewal included an internal review all insured assets,
completion of an in-depth cyber and IT questionnaire, and reporting
information on our internal controls. The liability program renews
on October 1, 2021, the liability renewal application will be
submitted later in the year.
• Changes to Lien Process – An electronic owner acknowledgement form
has been posted to the District’s website for all landlords to fill
out prior to a new tenant establishing service with the District.
Owner reaction has been positive. Staff is now working on a letter
to be sent to existing owners of tenant accounts in April notifying
them of the change in the Code which will make them responsible if
their tenant fails to pay the District their final balance.
• Cross Connection Control Policy Handbook – The State Water
Resources Control Board has recently released a draft of a new
Cross Connection Control Policy Handbook. Staff is currently
reviewing this and will be providing feedback to the State at the
end of April. With the future adoption of this new handbook,
previous cross connection standards will become inoperative.
Financial Reporting:
• The financial reporting for February 28, 2021 is as follows:
o For the eighth month ending February 28, 2021, there are total
revenues of $77,204,728 and total expenses of $69,618,342. The
revenues exceeded expenses by $7,586,386.
• The financial reporting for investments for February 28, 2021 is as
follows:
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of February 28, 2021 total
$81,403,574 with an average yield to maturity of 0.701%. The
total earnings year-to-date are $422,956.
6
ENGINEERING AND WATER SYSTEM OPERATIONS:
Engineering:
• 870-2 Pump Station Replacement: This project consists of a new
Pump Station to replace the existing Low Head 571-1 and High Head
870-1 Pump Stations. The project also includes the replacement of
the existing liner and cover for the 571-1 Reservoir (36.7 MG). On
June 29, 2020, Pacific Hydrotech, the Pump Station’s contractor,
achieved substantial completion and began seven-day operational
testing. Currently, the Pump Station remains in the testing phase
and remains offline pending mechanical repairs. The Pump Station
has four (4) pumps, two (2) electric motor driven and two (2)
external gas engine driven motor/pump combinations. There are on-
going mechanical repairs that are expected to be complete in April
2021, at which time, the 7-day testing will resume and be completed
for project acceptance. Unanticipated District costs associated
with the continuing repairs are being tracked for reimbursement
from the contract retention. Forensic reports for the mechanical
issues are under development and a consultant with pump expertise
has been hired to analyze and document the specific mechanical
issues. (P2083 & P2562)
• Temporary Lower Otay Pump Station Redundancy: This project will add
a second pump to the District’s existing Temporary Lower Otay Pump
Station (TLOPS) to provide redundancy. The District’s contractor,
Tharsos, moved the District’s pre-purchased trailer, which had been
stored in the Operations employee parking lot, to the project site
on May 18, 2020. Tharsos set the trailer and installed staircases
and platforms around the trailer in May 2020. Installation of
aboveground pipe was completed in December 2020. Construction of
below grade piping was completed February 2021. Tharsos’s
subcontractor, Southern Contracting Company, currently working on
electrical and instrumentation and control. Project completion and
startup of the District’s pre-purchased trailer is expected in April
2021. The project is within budget. COVID-19 IMPACTS: The
contractor is alleging that the project has experienced delays
associated with pipe fabrication. Staff is waiting for proof of the
impacts and continues to collect liquidated damages for the 290+
days the contractor is past the contract expiration date. The
District has collected $256K in liquidated damages through February
2021. (P2619)
• Portable Trailer Mounted VFD Pumps: This project consists of
procurement of a portable trailer mounted hydropneumatic pump
station designed for deployment at up to seven (7) existing sites
including four (4) hydropneumatic pump stations and three (3) small
pressure zones each fed by a single gravity reservoir. The trailer
is currently deployed at the District’s existing 1200-1 Pump Station
site and pumping into the 1200 Pressure Zone in support of the 1200-
1 Reservoir Interior/Exterior Coating Project (P2533) and to
7
complete system integration and testing. The District is
negotiating with the trailer vendor, Cortech, to close out Cortech’s
Purchase Order including reimbursement for manufacturing issues
mostly repaired by District staff in-house. (P2640)
• Otay Mesa Pipeline Cathodic Protection Improvements: This project
includes repairs to existing cathodic protection systems, such as
anode replacement and cathodic test station repairs located in the
Otay Mesa Area. The construction contract was awarded at the
August 2020 Board Meeting. Notice to proceed was issued September
8, 2020 and the Pre-Construction Meeting was held on September 11,
2020. The District’s contractor, Kay Construction, commenced field
work mid-September 2020 and project substantial completion was
achieved on December 11, 2020. NOC submitted to County of San
Diego and project closeout is underway. This project is within
budget. (P2648)
• 14-Inch Force Main Air-Vac Replacements Project: This project
includes replacement of nineteen (19) existing combination air-
vacuum valve assemblies previously replaced in 2006-2008, which are
reaching the end of their useful life. The construction contract
was awarded at the August 2020 Board Meeting. The District’s
contractor, Burtech, mobilized to the site early November 2020.
District pre-purchased air-vacuum valves were delivered months late
to the District on December 1, 2020. The delayed delivery impacted
the contractor, Burtech, and the District issued a unilateral
change order in the amount of $7,607.00 for full compensation of
the contractor’s costs. The vendor gave a credit to the District
in the same amount as compensation for the delays. Project
substantial completion was achieved on December 18, 2020. Project
final acceptance recommendation was received on March 24, 2021 and
project closeout is underway. This project is within budget.
(R2156)
• Vista Diego Hydropneumatic Pump Station Replacement: 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. District staff
have been working with the design consultant, Murraysmith, to
develop and select a replacement concept for preliminary design.
District staff coordinated with the Vista Diego Property Owners
Association (VDPOA) and the District’s as-needed geotechnical
engineer consultant, Ninyo & Moore, to complete geotechnical field
work late February 2021 in Vista Diego Road and at the Pump Station
site. Murraysmith is anticipated to deliver a draft preliminary
design report by April 2021. This project is within budget.
(P2639)
• 1090-1 Pump Station Renovation: This project includes renovation
of the existing Pump Station, including pump replacement and
addition of a third pump, which serves the small 1090 Pressure
8
Zone, containing approximately thirty-three (33) potable water
meters and seven (7) hydrants. Design was completed using as-
needed electrical design services and in-house engineering and
drafting personnel. Award of the contract to Cora Constructors was
authorized at the November 2020 Board Meeting. Notice to proceed
was issued on January 8, 2021. A Pre-construction Meeting was held
on January 20, 2021. This project is within budget. (P2174)
• RWCWRF Disinfection System Improvements: Currently, the Ralph W.
Chapman Water Reclamation Facility uses the 14-inch force main to
meet the contact time (CT) for the disinfection of recycled water
from the plant. This makes the force main part of the treatment
process and requires sampling of the plant effluent to be performed
at the Day Use area over a 20-minute drive time away. An update of
a study to perform disinfection on-site, completed in 2015, has
been completed by Arcadis U.S., Inc., to compare the newest
generation of ultraviolet (UV) methods, that are significantly more
energy efficient, to constructing a chlorine contact basin. The
final report was submitted in November 2020 and staff has reviewed
the recommendations as well as investigated other facilities that
use UV including the City of San Diego’s South Bay Water
Reclamation Plant (South Bay WRP). District staff visited the
South Bay WRP to understand better the system pros and cons of how
it is operated and maintained. Staff has advertised for the
consultant selection for design and is expected to bring this
selection to the Board for consideration at the June 2021 Board
Meeting. (R2117)
• Melrose Ave and Oleander Ave PRSs and 980 Reservoirs Altitude Valve
Vaults: Project involves the replacement of two 1960’s era pressure
reducing stations in Chula Vista. The 340 Pressure Zone is a
closed system with no storage, requiring pressure relief
capabilities at each station. Project design was originally
completed and bid in December 2019, but the sole bid received was
substantially over budget and rejected. The project was advertised
again in February 2021, with it being packaged with renovations to
the 980-1 & -2 Reservoirs altitude valve vaults. The valves and
piping have significant corrosion impacts, with new corrosion
protection included in the design. Bid opening was held on March
25, 2021 and will go to the Board for award at the May Board
Meeting. Projects are within budget. (P2605, P2627, P2671)
• 850-1 & 1200-1 Reservoirs Interior/Exterior Coating and Upgrades:
This project consists of removing and replacing the interior and
exterior coatings of the 850-1 (1.15 MG) and the 1200-1 (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. Capital Industrial Coatings, Inc. completed
the structural work and interior coating on the 850-1 Reservoir.
9
The contractor is currently working on removing and recoating the
exterior. The 850-1 is expected to be returned to service in mid-
April 2021. Work on the 1200-1 Reservoir is expected to begin on
April 5, 2021. The project is within budget. (P2543 & P2533)
• Recycled Water Storage Tank Coating: This project consists of
removing and replacing the interior and exterior coatings of the
Recycled Water Storage Tank (0.43 MG) and minor structural repairs.
The tank was built in 1979 and is located at the R.W. Chapman Water
Recycling Facility. Substantial completion was achieved on
February 23, 2021 and the project closeout is pending the vendor
delivery of a new plastic resin ball floating cover system. The
project is within budget. (R2120)
• FY 2021 Sewage Flows to Metro vs Planned Capacity:
The treatment plant was offline from November 2020 through February
2021 due to construction work on the force main and storage tank,
with recycled water production restarted on March 1, 2021. The
projected total flow to Metro for the fiscal year will be about 190
MG or just over 0.5 MGD. Metro flows for next fiscal year should
return to below the planned capacity as there are no planned
projects to require the plant to go offline for an extended period.
The Metro amended agreement indicates three (3) consecutive years
of exceeding the allocated capacity before having to increase the
agency’s capacity.
•
•
•
•
10
• Summary of Budgeted and Sold Meters and EDUs for Fiscal Year 2021
up through February 28, 2021:
Water System Operations (reporting for February):
• On Monday, February 1st, staff isolated 980-2 Reservoir to perform a
mock shutdown for the upcoming CIP inlet/outlet vault rehab.
• On Wednesday, February 3rd, staff isolated 980-1 Reservoir to
perform a mock shutdown for the upcoming CIP inlet/outlet vault
rehab.
• On Wednesday, February 10th, staff performed a planned shutdown on
Regency Court in Chula Vista for three six-inch valve replacements.
The shutdown lasted seven hours and affected 63 meters. Water
trailers were available for those affected.
• On Wednesday, February 17th, there was an unplanned power outage at
978 Pump Station and generator ran with APCD compliance.
• On Thursday, February 25th, staff performed a mock shutdown on
Camino Maquiladora in Otay Mesa for a required eight-inch fire
service valve replacement.
Purchases and Change Orders:
• The following table summarizes purchases and Change Orders issued
during the period from February 22 through March 18, 2021, that
were within staff’s signatory authority:
Date Meters
(Budgeted)
Meters
Sold
(Actual)
EDUs
(Budgeted)
EDUs
Sold
(Actual)
Total $
Collected
(Budgeted)
Total $
Collected
(Actual)
Feb
2021
23.8 27 37.9 56 $256,459 $634,051
Totals
FY
2021
190.0 188 303.3 423 $2,051,667 $4,067,235
Date Action
Amount
Contractor/
Consultant
Project
2/22/2021 P.O. $9,940.00 MAXIM
ENGINEERING
HEADWORKS CANOPY
REPAIRS
2/24/2021 P.O. $1,409.41 HOFFMEYER
COMPANY
POTABLE WATER PRESSURE
VESSEL PROGRAM (P2663)
3/1/2021 P.O. $4,231.34
BARRETT
ENGINEERED
PUMPS
POTABLE WATER PRESSURE
VESSEL PROGRAM (P2663)
11
Water Conservation and Sales:
• Water Conservation – February 2021 usage was 4% lower than February
2013 usage. Since February 2020, customers have saved an average
of 6% over 2013 levels.
3/3/2021 P.O. $8,737.57 TRANE US, INC. HVAC MAINTENANCE AND
REPAIRS
3/10/2021 P.O. $3,550.00 COUNTY OF SAN
DIEGO
UPFP PERMIT RENEWALS
(VARIOUS)
3/11/2021 P.O. $8,080.00
PINNACLE
BUSINESS
SOLUTIONS
CRADLEPOINT NET CLOUD
RENEWAL
3/12/2021 P.O. $15,900.00 WIMMER YAMADA
AND CAUGHEY
ADMIN LANDSCAPE DESIGN
REFRESH
3/12/2021 P.O. $2,040.35 FERGUSON
WATERWORKS
PORTABLE TRAILER
MOUNTED VFD PUMPS
(P2640)
3/16/2021 C.C. $299.24
FARWEST
CORROSION
CONTROL
RECYCLED PIPELINE
CATHODIC PROTECTION
IMPROVEMENTS (R2146)
3/17/2021 C.O. #1 $7,607.00 BURTECH
PIPELINE, INC.
14-INCH RWCWRF
EFFLUENT FORCE MAIN
IMPROVEMENTS (R2156)
3/17/2021 P.O. $68,296.00 AZTEC FENCE CO
II, INC.
GATE MOTOR REPLACEMENT
PROGRAM
3/18/2021 P.O. $1,503.33 FERGUSON
WATERWORKS
TEMPORARY LOWER OTAY
PUMP STATION
REDUNDANCY (P2619)
12
• Potable Water Purchases – The February potable water purchases were
1,740 acre-feet which is 8% above the budget of 1,609 acre-feet.
The cumulative purchases through February were 20,149 acre-feet
which is 19% above the cumulative budget of 16,901 acre-feet. The
surplus volumes for the month and year are most likely due to
February year-to-date rainfall being below the three-year average
rainfall by 57%. In addition, the FY 2021 potable water sales
budget was cut by 12% from the projected FY 2021 actuals as a
response to COVID-19 and the expected economic impacts.
• Recycled Water Purchases – The February recycled water purchases
from the City of San Diego and production at the District’s
treatment facility were 154 acre-feet which is 76% above the budget
of 87 acre-feet. The cumulative production and purchases through
February were 2,682 acre-feet which is 29% above the cumulative
budget of 2,206 acre-feet. The surplus volumes for the month and
year are most likely due to February year-to-date rainfall being
below the three-year average rainfall by 57%. In addition, the FY
2021 recycled water sales budget was cut by 15% from the projected
FY 2021 actuals as a response to COVID-19 and the expected economic
impacts.
13
Potable, Recycled, and Sewer (Reporting up to the month of February):
• Total number of potable water meters: 51,235.
• Total number of sewer connections: 4,740.
• Recycled water consumption for the month of February:
o Total consumption: 82.05 acre-feet or 26,736,512 gallons.
o Average daily consumption: 954,875 gallons per day.
o Total cumulative recycled water consumption since February 1,
2020: 2,871.3 acre-feet.
o Total number of recycled water meters: 744.
• Wastewater flows for the month of February:
o Total basin flow: 1,601,714 gallons per day.
▪ This is a decrease of 1.5 percent from February 2020.
o Spring Valley Sanitation District flow to Metro: 531,368 gallons
per day.
o Total Otay flow: 1,070,464 gallons per day.
o Flow processed at the Ralph W. Chapman Water Recycling Facility:
0 gallons per day.
o Flow to Metro from Otay Water District: 1,070,464 gallons per
day.
o By the end of February there were 6,752 wastewater EDUs.
Exhibit A
Annual YTD YTD YTD
Budget Actual Budget Variance Var %
REVENUES:
4110 Potable Water Sales 46,419,000$ 39,518,195$ 32,504,000$ 7,014,195$ 21.6%
31-4118 Recycled Water Sales 8,411,000 7,632,368 6,090,000 1,542,368 25.3%
4140 Potable Energy Charges 2,034,000 1,862,604 1,546,600 316,004 20.4%
4120 Potable System Charges 16,805,000 11,160,456 11,146,000 14,456 0.1%
4150 Potable MWD & CWA Fixed Charges 12,869,000 8,479,257 8,474,000 5,257 0.1%
4310 Potable Penalties and Other Fees 622,000 22,007 345,500 (323,493) (93.6%)
Total Water Sales 87,160,000 68,674,887 60,106,100 8,568,787 14.3%
4210 Sewer Charges 2,870,000 1,866,006 1,866,800 (794) (0.0%)
4133 Meter Fees 123,000 94,393 81,600 12,793 15.7%
4136 Capacity Fee Revenues 1,869,000 1,466,344 1,396,400 69,944 5.0%
4414 Non-Operating Revenues 2,177,000 1,842,644 1,426,400 416,244 29.2%
4621 Tax Revenues 4,155,000 3,115,297 2,611,800 503,497 19.3%
4512 Interest 179,000 145,157 122,200 22,957 18.8%
Total Revenues 98,533,000$ 77,204,728$ 67,611,300$ 9,593,428$ 14.2%
EXPENSES:
5511 Potable Water Purchases 33,631,000$ 27,167,441$ 22,795,400 (4,372,041)$ (19.2%)
5515 Recycled Water Purchases 4,058,000 3,209,000 3,209,000 - 0.0%
5523 CWA-Infrastructure Access Charge 2,839,000 1,827,918 1,823,698 (4,220) (0.2%)
5521 CWA-Customer Service Charge 1,703,000 1,145,553 1,135,200 (10,353) (0.9%)
5524 CWA-Reliability Charge 2,711,000 1,785,550 1,784,500 (1,050) (0.1%)
5522 CWA-Emergency Storage Charge 4,608,000 3,095,237 3,101,454 6,217 0.2%
5531 MWD-Capacity Res Charge 628,000 407,690 404,990 (2,700) (0.7%)
5532 MWD-Readiness to Serve Charge 720,000 477,358 479,952 2,594 0.5%
Subtotal Water Purchases 50,898,000 39,115,747 34,734,194 (4,381,553) (12.6%)
5411 Power Charges 2,898,000 2,115,606 1,800,933 (314,673) (17.5%)
Payroll & Related Costs 21,860,000 13,827,384 14,038,500 211,116 1.5%
Material & Maintenance 3,720,000 2,263,305 2,415,167 151,862 6.3%
Administrative Expenses 6,280,000 3,756,647 4,001,067 244,420 6.1%
5251 Legal Fees 707,000 426,253 431,300 5,047 1.2%
Expansion Reserve 150,000 100,000 100,000 - 0.0%
Replacement Reserve 9,676,000 6,450,700 6,450,700 - 0.0%
OPEB Trust 1,100,000 733,300 733,300 - 0.0%
General Fund Reserve 259,000 172,700 172,700 - 0.0%
Total Expenses 98,533,000$ 69,618,342$ 65,534,561$ (4,083,781)$ (6.2%)
EXCESS REVENUES(EXPENSE) -$ 7,586,386$ 2,076,739$ 5,509,647$
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2021
F:/MORPT/FS2021-0221.xlsx 3/25/2021 9:14 AM
COMPARATIVE BUDGET SUMMARY
NET REVENUES AND EXPENSES
FOR THE EIGHT MONTHS ENDED FEBRUARY 28, 2021
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
$8,000,000
$8,500,000
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
The year-to-date actual net revenues through February show a positive variance of $5,509,647.
OTAY WATER DISTRICT
INVESTMENT PORTFOLIO REVIEW
February 28, 2021
INVESTMENT OVERVIEW & MARKET STATUS:
At the Federal Reserve Board’s regular scheduled meeting on March 15, 2020, the Committee lowered the target range for the federal funds
rate from 1.50-1.750% to 0-0.25% in light of the effects of the coronavirus which harmed communities and disrupted economic activity in
many countries, including the United States. There have been no further changes made to the federal funds rate at the most recent meeting
which was held on March 17, 2021. The Committee anticipates maintaining the target range of 0-0.25% until labor market conditions have
reached levels consistent with the Committee’s assessment of maximum employment and inflation has risen to 2 percent and is on track to
moderately exceed 2 percent for some time. The Committee will continue to observe the effects of incoming information for 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 public health,
labor market conditions, inflation pressures and inflation expectations, and financial and international developments.”
The District’s effective rate of return for the month of February 2021 was .70%, which was two basis points lower than the previous month.
LAIF return on deposits was five basis points lower than the previous month, reaching an average effective yield of .41% for the month of
February 2021. Based on our success at maintaining a competitive rate of return on our portfolio during this extended period of low interest
rates, no changes in investment strategy regarding returns on investment are being considered at this time.
In accordance with the District’s Investment Policy, all District funds continue to be managed based on the objectives, in priority order, of
safety, liquidity, and return on investment.
PORTFOLIO COMPLIANCE: February 28, 2021
Investment State Limit Otay Limit Otay Actual
8.01: Treasury Securities 100% 100% 0
8.02: Local Agency Investment Fund (Operations) $75 Million $65 Million $33.38 Million
8.02: Local Agency Investment Fund (Bonds) 100% 100% $ 1.48 Million
8.03: Federal Agency Issues 100% 100% $ 3.67 Million
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% 0
8.08: San Diego County Pool 100% 100% 50.95%
12.0: Maximum Single Financial Institution 100% 50% 1.54%
$1,248,002
1.54%
$76,176,340
93.94%
$3,666,946
4.52%
Otay Water District
Investment Portfolio: 02/28/2021
Banks (Passbook/Checking/CD)Pools (LAIF & County)Agencies & Corporate Notes
Total Cash and Investments: $81,091,288 (Book Value)
July
FY20
Aug
FY20
Sep
FY20
1st Qtr
FY20
Oct
FY20
Nov
FY20
Dec
FY20
2nd Qtr
FY20
Jan
FY20
Feb
FY20
Mar
FY20
3rd Qtr
FY20
Apr
FY20
May
FY20
Jun
FY20
4th Qtr
FY20
Jul
FY21
Aug
FY21
Sep
FY21
1st Qtr
FY21
Oct
FY21
Nov
FY21
Dec
FY21
2nd Qtr
FY21
Jan
FY21
Feb
FY21
LAIF 2.38 2.34 2.28 2.33 2.19 2.10 2.04 2.11 1.97 1.91 1.79 1.89 1.65 1.36 1.22 1.41 0.92 0.78 0.69 0.80 0.62 0.58 0.54 0.58 0.46 0.41
Otay 1.91 1.90 1.93 1.92 1.94 1.97 1.92 1.95 1.90 1.86 1.71 1.83 1.51 1.31 1.19 1.34 0.95 0.93 0.82 0.91 0.81 0.87 0.77 0.82 0.72 0.70
Difference -0.47 -0.44 -0.35 -0.42 -0.25 -0.13 -0.12 -0.16 -0.07 -0.05 -0.08 -0.06 -0.14 -0.05 -0.03 -0.07 0.03 0.15 0.14 0.11 0.19 0.29 0.23 0.24 0.26 0.29
-1.00
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Re
t
u
r
n
o
n
I
n
v
e
s
t
m
e
n
t
s
Month
Performance Measure FY-21
Return on Investment
LAIF Otay Difference
Target: Meet or Exceed 100% of LAIF
Month End
Portfolio Management
February 28, 2021
Portfolio Summary
% ofPortfolioBookValueInvestmentsMarketValueParValue
Days toMaturityTerm YTM360 Equiv.YTM365 Equiv.
Federal Agency Issues - Coupon 3,666,946.52 7364.59 1.4541933,695,406.003,650,000.00 1.474
BOND PROCEEDS (LAIF)1,483,020.92 11.86 0.40111,486,389.331,483,020.92 0.407
Local Agency Investment Fund (LAIF)33,376,967.31 141.80 0.401133,452,777.0233,376,967.31 0.407
San Diego County Pool 41,316,351.37 151.75 0.868141,521,000.0041,316,351.37 0.880
79,843,286.12 100.00%Investments 80,155,572.3579,826,339.60 35 10 0.691 0.701
Cash
(not included in yield calculations)Passbook/Checking 1,248,001.61 1 0.27811,248,001.611,248,001.61 0.282
81,091,287.73Total Cash and Investments 81,403,573.9681,074,341.21 35 10 0.691 0.701
Current Year
February 28
43,790.97
Fiscal Year To Date
422,955.76
Average Daily Balance
Effective Rate of Return
81,769,608.34 77,106,306.75
0.82%0.70%
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 06, 2020. The market valueinformation provided by Interactive Data Corporation. The investments provide sufficient liquidity to meet the cash flow requirements of the District for the next six months of expenditures.
__________________________________________________ ____________________Joseph Beachem, Chief Financial Officer
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Reporting period 02/01/2021-02/28/2021
Run Date: 03/18/2021 - 18:11 PM (PRF_PM1) 7.3.0
Report Ver. 7.3.5
03/22/2021
YTM360
Page 1
Par Value Book Value MaturityDateStatedRateMarket Value
February 28, 2021
Portfolio Details - Investments
AverageBalanceIssuer
Portfolio Management
Month End
Days toMaturityS&PCUSIPInvestment #PurchaseDate
Federal Agency Issues - Coupon
1.454Federal Home Loan Bank2384 1,005,000.00 1,009,666.10 09/10/20212.37509/05/2019 1,017,502.20 AA313378JP7 193
1.454Federal Home Loan Bank2385 2,645,000.00 2,657,280.42 09/10/20212.37509/05/2019 2,677,903.80 AA313378JP7 193
3,666,946.523,695,406.003,650,000.003,668,329.91Subtotal and Average 1.454 193
BOND PROCEEDS (LAIF)
0.401STATE OF CALIFORNIA9015 1,483,020.92 1,483,020.92 0.4071,486,389.33LAIF 2018 1
1,483,020.921,486,389.331,483,020.921,561,592.35Subtotal and Average 0.401 1
Local Agency Investment Fund (LAIF)
0.401STATE OF CALIFORNIA9001 33,376,967.31 33,376,967.31 0.40733,452,777.02LAIF 1
33,376,967.3133,452,777.0233,376,967.3132,644,824.45Subtotal and Average 0.401 1
San Diego County Pool
0.868San Diego County9007 41,316,351.37 41,316,351.37 0.88041,521,000.00SD COUNTY POOL 1
41,316,351.3741,521,000.0041,316,351.3741,290,305.93Subtotal and Average 0.868 1
81,769,608.34 79,826,339.60 0.691 1080,155,572.35 79,843,286.12Total and Average
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.5
YTM360
Page 2
Par Value Book Value StatedRateMarket Value
February 28, 2021
Portfolio Details - Cash
AverageBalanceIssuer
Portfolio Management
Month End
Days toMaturityS&PCUSIPInvestment #PurchaseDate
Union Bank
0.010STATE OF CALIFORNIA9002 391,872.54 391,872.54 0.010391,872.54UNION MONEY 1
0.000STATE OF CALIFORNIA9003 2,950.00 2,950.002,950.00PETTY CASH 1
0.444STATE OF CALIFORNIA9004 770,163.03 770,163.03 0.450770,163.03UNION OPERATING 1
0.000STATE OF CALIFORNIA9005 29,545.43 29,545.4307/01/2020 29,545.43PAYROLL 1
0.030STATE OF CALIFORNIA9010 11,166.06 11,166.06 0.03007/01/2020 11,166.06RESERVE-10 COPS 1
0.030STATE OF CALIFORNIA9011 24,198.00 24,198.00 0.03007/01/2020 24,198.00RESERVE-10 BABS 1
0.000STATE OF CALIFORNIA9014 18,106.55 18,106.5507/01/2020 18,106.55UBNA-FLEX ACCT 1
0.00
81,769,608.34 81,074,341.21 0.691 10
1Average Balance
81,403,573.96 81,091,287.73Total Cash and Investments
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 PM (PRF_PM2) 7.3.0
Month End
Activity Report
Sorted By Issuer
February 1, 2021 - February 28, 2021
CurrentRate TransactionDate BalanceBeginningBalanceEnding
Par Value
Percentof Portfolio
Par Value
CUSIP Investment #Issuer
Purchases orDeposits Redemptions orWithdrawals
Issuer: STATE OF CALIFORNIA
BOND PROCEEDS (LAIF)
STATE OF CALIFORNIA9015 0.000.407 1,100,000.00LAIF 2018
1,100,000.002,583,020.92 1,483,020.92Subtotal and Balance 0.00
Union Bank
STATE OF CALIFORNIA9002 2,200,003.720.010 2,211,611.39UNION MONEY
STATE OF CALIFORNIA9004 626,613.450.450 1,300,999.35UNION OPERATING
STATE OF CALIFORNIA9010 0.290.030 1,456.47RESERVE-10 COPS
STATE OF CALIFORNIA9011 0.420.030 7,222.24RESERVE-10 BABS
STATE OF CALIFORNIA9014 0.00 12,416.73UBNA-FLEX ACCT
3,533,706.181,955,089.91 1,248,001.61Subtotal and Balance 2,826,617.88
Local Agency Investment Fund (LAIF)
STATE OF CALIFORNIA9001 5,600,000.000.407 3,100,000.00LAIF
3,100,000.0030,876,967.31 33,376,967.31Subtotal and Balance 5,600,000.00
8,426,617.88 7,733,706.1835,415,078.14 36,107,989.8444.537%Issuer Subtotal
Issuer: Federal Home Loan Bank
Federal Agency Issues - Coupon
3,650,000.00 3,650,000.00Subtotal and Balance
0.00 0.003,650,000.00 3,650,000.004.502%Issuer Subtotal
Issuer: San Diego County
San Diego County Pool
San Diego County9007 48,618.150.880 0.00SD COUNTY POOL
0.0041,267,733.22 41,316,351.37Subtotal and Balance 48,618.15
48,618.15 0.0041,267,733.22 41,316,351.3750.961%Issuer Subtotal
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 DA (PRF_DA) 7.2.0
Report Ver. 7.3.5
CurrentRate TransactionDate BalanceBeginningBalanceEnding
Par Value
Page 2
Percentof Portfolio
Par Value
February 1, 2021 - February 28, 2021
Activity Report
Month End
CUSIP Investment #Issuer
Purchases orDeposits Redemptions orWithdrawals
80,332,811.36 81,074,341.21Total7,733,706.188,475,236.03100.000%
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 DA (PRF_DA) 7.2.0
Report Ver. 7.3.5
Month End
Duration Report
Sorted by Investment Type - Investment Type
Through 02/28/2021
Investment #Security ID Issuer InvestmentClass BookValue ParValue MarketValue CurrentRate YTM Current Yield Maturity/Call Date DurationModified360Fund
Federal Home Loan Bank238499 1,005,000.00 1,017,502.20313378JP7 0.005 09/10/2021 0.5191,009,666.10 1.454Fair2.375000
Federal Home Loan Bank238599 2,645,000.00 2,677,903.80313378JP7 0.005 09/10/2021 0.5192,657,280.42 1.454Fair2.375000
STATE OF CALIFORNIA901599 1,483,020.92 1,486,389.33LAIF 2018 0.407 0.0001,483,020.92 0.401Fair.4070000
STATE OF CALIFORNIA900199 33,376,967.31 33,452,777.02LAIF 0.407 0.00033,376,967.31 0.401Fair.4070000
San Diego County900799 41,316,351.37 41,521,000.00SD COUNTY 0.880 0.00041,316,351.37 0.868Fair.8800000
0.634 0.02379,843,286.12 79,826,339.60 80,155,572.35Report Total
Portfolio OTAY
NL! ACPage 1Data Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 DU (PRF_DU) 7.1.1
Report Ver. 7.3.5
Month End
GASB 31 Compliance Detail
Sorted by Fund - Fund
February 1, 2021 - February 28, 2021
Investment #MaturityDate
BeginningInvested Value Purchaseof Principal
InvestmentClassFundCUSIP
Adjustment in Value
EndingInvested ValueAdditionto Principal Redemptionof Principal AmortizationAdjustment Change inMarket Value
Fund: Treasury Fund
2384 1,018,858.95Fair Value 09/10/2021 -1,356.7599 1,017,502.20313378JP70.00 0.00 0.00 0.00
2385 2,681,474.55Fair Value 09/10/2021 -3,570.7599 2,677,903.80313378JP70.00 0.00 0.00 0.00
9002 403,480.21Amortized 0.0099 391,872.54UNION MONEY 0.00 2,200,003.72 2,211,611.39 0.00
9003 2,950.00Amortized 0.0099 2,950.00PETTY CASH 0.00 0.00 0.00 0.00
9015 2,588,887.78Fair Value -2,498.4599 1,486,389.33LAIF 2018 0.00 0.00 1,100,000.00 0.00
9004 1,444,548.93Amortized 0.0099 770,163.03UNION OPERATING 0.00 626,613.45 1,300,999.35 0.00
9001 30,947,098.72Fair Value 5,678.3099 33,452,777.02LAIF0.00 5,600,000.00 3,100,000.00 0.00
9010 12,622.24Amortized 0.0099 11,166.06RESERVE-10 COPS 0.00 0.29 1,456.47 0.00
9011 31,419.82Amortized 0.0099 24,198.00RESERVE-10 BABS 0.00 0.42 7,222.24 0.00
9014 30,523.28Amortized 0.0099 18,106.55UBNA-FLEX ACCT 0.00 0.00 12,416.73 0.00
9005 29,545.43Amortized 0.0099 29,545.43PAYROLL0.00 0.00 0.00 0.00
9007 41,367,000.00Fair Value 105,381.8599 41,521,000.00SD COUNTY POOL 0.00 48,618.15 0.00 0.00
80,558,409.91Subtotal 103,634.20 81,403,573.960.00 8,475,236.03 7,733,706.18 0.00
80,558,409.91Total 81,403,573.96103,634.200.00 8,475,236.03 7,733,706.18 0.00
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 GD (PRF_GD) 7.1.1
Report Ver. 7.3.5
Month End
Interest Earnings
Sorted by Fund - Fund
February 1, 2021 - February 28, 2021
Yield on Beginning Book Value
MaturityDate CurrentRateEndingPar Value EndingSecurityTypeFundBook ValueBeginningBook Value
Adjusted Interest Earnings
AccretionAmortization/EarningsAdjusted InterestAnnualizedYieldCUSIPInvestment #InterestEarned
Fund: Treasury Fund
1,009,666.1023841,005,000.00 2.375FAC09/10/2021 1,989.06 -740.65 1,248.411.611991,010,406.75313378JP7
2,657,280.4223852,645,000.00 2.375FAC09/10/2021 5,234.89 -1,949.28 3,285.611.611992,659,229.70313378JP7
391,872.549002391,872.54 0.010PA1 3.67 0.00 3.670.01299403,480.21UNION MONEY
1,483,020.9290151,483,020.92 0.407LA2 487.56 0.00 487.560.246992,583,020.92LAIF 2018
770,163.039004770,163.03 0.450PA1 698.64 0.00 698.640.630991,444,548.93UNION OPERATING
33,376,967.31900133,376,967.31 0.407LA1 10,192.34 0.00 10,192.340.4309930,876,967.31LAIF
11,166.06901011,166.06 0.030PA1 0.28 0.00 0.280.0299912,622.24RESERVE-10 COPS
24,198.00901124,198.00 0.030PA1 0.68 0.00 0.680.0289931,419.82RESERVE-10 BABS
41,316,351.37900741,316,351.37 0.880LA3 27,873.78 0.00 27,873.780.8809941,267,733.22SD COUNTY POOL
81,023,739.23Subtotal 81,040,685.75 0.711 43,790.97-2,689.9346,480.9080,289,429.10
81,023,739.23Total 81,040,685.75 0.711 43,790.97-2,689.9346,480.9080,289,429.10
Portfolio OTAY
NL! ACData Updated: SET_ME8: 03/18/2021 18:11
Run Date: 03/18/2021 - 18:11 IE (PRF_IE) 7.2.0
Report Ver. 7.3.5
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:April 7, 2021
SUBMITTED BY:Eid Fakhouri, Finance Manager,
Treasury & Accounting Services
W.O./G.F. NO: DIV. NO.
APPROVED BY:
APPROVED BY:
SUBJECT:
PURPOSE:
Joseph Beachem, Chief Financial Officer
Jose Martinez, General Manager
Accounts Payable Demand List
Attached is the list of demands for the Board's information.
FISCAL IMPACT:
SUMMARY FOR PERIOD 2/18/2021 - 3/24/2021 NET DEMANDS
CHECKS (2055598 - 2055774) $ 1,740,575.67
VOID CHECKS (1) ($ 695.00)
TOTAL CHECKS $ 1,739,880.67
WIRE TO:
CALPERS - OTHER POST EMPLOYMENT BENEFITS (MONTHLY) $ 67,322.25
CALPERS - OTHER POST EMPLOYMENT BENEFITS (MONTHLY) $ 67,322.25
CITY OF CHULA VISTA - BI-MONTHLY SEWER CHARGES (JAN-FEB 2021) $ 3,708,764.08
CITY TREASURER - METROPOLITAN SEWERAGE SYSTEM (QUARTERLY) $ 140,986.00
OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 623.00
OTAY WATER DISTRICT - BI-WEEKLY PAYROLL DEDUCTION $ 623.00
PREFERRED BENEFIT INSURANCE - DENTAL & COBRA CLAIMS (FEB 2020) $ 17,208.17
PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 112,894.09
PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 113,044.60
PUBLIC EMPLOYEES RET SYSTEM - BI-WEEKLY PERS CONTRIBUTION $ 112,496.59
SAN DIEGO COUNTY WATER AUTH - WATER DELIVERIES & CHARGES (JAN 2020) $ 3,792,678.25
SPECIAL DISTRICT RISK - EMPLOYEE MEDICAL BENEFITS 2021 $ 353,985.25
SPECIAL DISTRICT RISK - EMPLOYEE MEDICAL BENEFITS 2021 $ 353,950.23
UNION BANK - BI-WEEKLY PAYROLL TAXES $ 183,952.70
UNION BANK - BI-WEEKLY PAYROLL TAXES $ 162,703.69
UNION BANK - BI-WEEKLY PAYROLL TAXES $ 166,875.88
UNION BANK NA - SERIES 2010A BONDS (SEMI-ANNUAL) $ 120,780.30
UNION BANK NA SERIES 2010B BONDS (SEMI-ANNUAL) $ 787,294.36
UNION BANK NA SERIES 2018A BONDS (SEMI-ANNUAL) $ 664,113.50
UNION BANK NA SERIES 2019 BONDS (SEMI-ANNUAL) $ 45,369.37
UNION BANK NA SERIES 2016 BONDS(SEMI-ANNUAL) $ 517,265.05
UNION BANK NA ID 27 SERIES 2009 BONDS (SEMI-ANNUAL) $ 28,500.00
UNION BANK NA SERIES 2013 BONDS (SEMI-ANNUAL) $ 48,288.81
US BANK - CAL CARD EXPENSES (MONTHLY) $ 173,562.09
VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 99,599.47
VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 68,236.78
VOYA FINANCIAL - BI-WEEKLY 401A & 457 PLAN $ 39,380.56
TOTAL CASH DISBURSEMENTS $ 13,687,700.99
RECOMMENDED ACTION:
That the Board received the attached list of demands.
Jb/Attachment
Check Total
2,859.50
14,500.02
27,005.00
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2055598 02/24/21 20596 2001 OTAY ASSOCIATES LLC 7100022221 02/22/21 CUSTOMER REFUND 532.16 532.16
2055735 03/24/21 08488 ABLEFORCE INC 9950 03/16/21 SHAREPOINT & INTRANET SUPPORT SVCS 2,250.00 2,250.00
2055736 03/24/21 18122 ACC BUSINESS 210442715 02/27/21 INTERNET CIRCUIT SERVICES FY20-22 1,013.64 1,013.64
2055599 02/24/21 17989 ADS CORP 22446.22-1220 12/28/20 SEWER FLOW MONITORING 695.00 695.00
2055669 03/10/21 17989 ADS CORP 22446.22-0221 02/20/21 SEWER FLOW MONITORING 695.00 695.00
2055737 03/24/21 07732 AIRGAS SPECIALTY PRODUCTS INC 9800742339 03/08/21 AS-NEEDED AQUA AMMONIA 441.00 441.00
2055600 02/24/21 07732 AIRGAS SPECIALTY PRODUCTS INC 9109795071 02/04/21 AS-NEEDED AQUA AMMONIA 1,497.50
9109795072 02/05/21 AS-NEEDED AQUA AMMONIA 921.00
9109795073 02/05/21 AS-NEEDED AQUA AMMONIA 441.00
2055738 03/24/21 15024 AIRX UTILITY SURVEYORS INC 3702282021 03/08/21 AS-NEEDED UTILITY LOCATING (FEB 2021)4,130.00 4,130.00
2055601 02/24/21 15024 AIRX UTILITY SURVEYORS INC 3601312021 02/03/21 UTILITY LOCATING (JAN 2021)4,110.00 4,110.00
2055642 03/03/21 20602 ALBERT CARBAJAL Ref002618265 03/01/21 UB Refund Cst #0000252666 7.88 7.88
2055702 03/17/21 14256 ALLIANT INSURANCE SERVICES INC 1376422 07/03/20 INSURANCE CONSULTING 7,250.01
1376423 10/02/20 INSURANCE CONSULTING 7,250.01
2055739 03/24/21 14462 ALYSON CONSULTING CM202111 02/12/21 CMIS (1/7/21-2/9/21)28,035.00 28,035.00
2055670 03/10/21 14462 ALYSON CONSULTING CM202117 02/15/21 CMIS (JAN 2021)9,420.00
CM202118 02/15/21 CMIS (JAN 2021)4,625.00
CM202115 02/15/21 CMIS (JAN 2021)3,200.00
CM202112 02/15/21 CMIS (JAN 2021)2,880.00
CM202116 02/15/21 CMIS (JAN 2021)2,880.00
CM202113 02/15/21 CMIS (JAN 2021)2,560.00
CM202114 02/15/21 CMIS (JAN 2021)1,440.00
2055703 03/17/21 20622 ANGELA HUNT Ref002619043 03/15/21 UB Refund Cst #0000260586 41.09 41.09
2055602 02/24/21 03492 AQUA-METRIC SALES COMPANY 0080914 01/27/21 OMNI C2 TOP PLATES 9,252.24 9,252.24
2055740 03/24/21 03492 AQUA-METRIC SALES COMPANY 0081360 03/01/21 INVENTORY 6,673.53 6,673.53
2055704 03/17/21 17264 ARTIANO SHINOFF ABED 304609 02/16/21 PROF SERV - JAN 2021 45,718.10 45,718.10
2055705 03/17/21 07785 AT&T 000016016634 02/12/21 TELEPHONE SERVICES (1/12/2021 - 2/11/2021)4,780.13 4,780.13
2055643 03/03/21 20603 AWL LP Ref002618266 03/01/21 UB Refund Cst #0000257922 1,635.05 1,635.05
2055741 03/24/21 14985 AZTEC FENCE CO II INC AZ 2293-21 03/15/21 GATE MOTOR REPLACEMENT PROGRAM 10,244.40 10,244.40
Page 1 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2,754.00
2,722.00
2055741 03/24/21 14985 AZTEC FENCE CO II INC AZ 2293-21 03/15/21 GATE MOTOR REPLACEMENT PROGRAM 10,244.40 10,244.40
2055706 03/17/21 20623 BROOKFIELD RESIDENTIAL Ref002619044 03/15/21 UB Refund Cst #0000265285 21.86 21.86
2055707 03/17/21 08156 BROWNSTEIN HYATT FARBER 836452 03/16/21 LEGISLATIVE ADVOCACY CONSULTING SERV 1,640.00 1,640.00
2055603 02/24/21 20374 CALBURTON INC CAL334 02/04/21 UTILITY LOCATING SERVICES (JAN 2021)11,870.00 11,870.00
2055742 03/24/21 20374 CALBURTON INC CAL348 03/04/21 UTILITY LOCATING SERVICES (FEB 2021)8,405.00 8,405.00
2055743 03/24/21 15447 CANNON, LARRY LC032221 03/22/21 TUITION REIMBURSEMENT 1,799.00 1,799.00
2055604 02/24/21 20410 CAPITAL INDUSTRIAL 201262021 01/26/21 850-1 & 1200-1 RES ROJECT (ENDING 1/26/21)194,469.56 194,469.56
2055708 03/17/21 12631 CITY OF CHULA VISTA DDA0346 03/09/21 PASEO LADERA REPAIR (1/5/21-1/31/21)3,983.81 3,983.81
2055671 03/10/21 00234 CITY TREASURER 1000299853 02/10/21 WATER DELIVERIES (FY20)158.06 158.06
2055605 02/24/21 04119 CLARKSON LAB & SUPPLY INC 19561 01/31/21 BACTERIOLOGICAL TESTING (1/5/21-1/6/21)480.00
19568 01/31/21 BACTERIOLOGICAL TESTING (1/25/21-1/26/21)452.00
19559 01/31/21 BACTERIOLOGICAL TESTING (1/4/21-1/5/21)414.00
19566 01/31/21 BACTERIOLOGICAL TESTING (1/19/21)302.00
19567 01/31/21 BACTERIOLOGICAL TESTING (1/20/21)206.00
19565 01/31/21 BACTERIOLOGICAL TESTING (1/19/21)188.00
19560 01/31/21 BACTERIOLOGICAL TESTING (1/5/21)178.00
19562 01/31/21 BACTERIOLOGICAL TESTING (1/12/21)178.00
19563 01/31/21 BACTERIOLOGICAL TESTING (1/13/21)178.00
19564 01/31/21 BACTERIOLOGICAL TESTING (1/14/21)178.00
2055744 03/24/21 04119 CLARKSON LAB & SUPPLY INC 19877 02/28/21 BACTERIOLOGICAL TESTING (2/23/21-2/25/21)554.00
19869 02/28/21 BACTERIOLOGICAL TESTING (2/3/21-2/4/21)552.00
19870 02/28/21 BACTERIOLOGICAL TESTING (2/8/21-2/9/21)414.00
19875 02/28/21 BACTERIOLOGICAL TESTING (2/22/21)302.00
19876 02/28/21 BACTERIOLOGICAL TESTING (2/23/21)188.00
19871 02/28/21 BACTERIOLOGICAL TESTING (2/9/21)178.00
19872 02/28/21 BACTERIOLOGICAL TESTING (2/10/21)178.00
19873 02/28/21 BACTERIOLOGICAL TESTING (2/11/21)178.00
19874 02/28/21 BACTERIOLOGICAL TESTING (2/22/21)178.00
2055672 03/10/21 02852 CLA-VAL COMPANY 814786 02/15/21 CLA-VAL 870-1 SOLENOID & CONTROLLER 9,064.00 9,064.00
2055709 03/17/21 20619 COMMERCE CONSTRUCTION CO LP Ref002619040 03/15/21 UB Refund Cst #0000252225 1,920.07 1,920.07
2055710 03/17/21 20626 CONCEPCION SANCHEZ Ref002619047 03/15/21 UB Refund Cst #0000266981 92.70 92.70
Page 2 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
1,530.00
3,550.00
1,127.10
15,624.90
31,828.50
20626 CONCEPCION SANCHEZ Ref002619047 UB Refund Cst #0000266981
2055606 02/24/21 16030 CORA CONSTRUCTORS INC 101312021 02/03/21 1090-1 PS RENOVATION (JAN 2021)12,312.00 12,312.00
2055745 03/24/21 00099 COUNTY OF SAN DIEGO DPWMWD0121 02/25/21 EXCAVATION PERMITS (JAN 2021)3,382.60 3,382.60
2055644 03/03/21 00184 COUNTY OF SAN DIEGO 2003193E63419 02/18/21 DEVELOPER PLAN CHECK (2/18/21)765.00
2003193E63420 02/22/21 DEVELOPER PLAN CHECK (2/22/21)765.00
2055673 03/10/21 00184 COUNTY OF SAN DIEGO 0351011921 01/19/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)565.00
0405011921 01/19/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)565.00
316912221 01/22/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)484.00
0295012221 01/22/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)484.00
0296012221 01/22/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)484.00
0297012221 01/22/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)484.00
2786012221 01/22/21 UPFP PERMIT RENEWAL (6/30/20-6/30/21)484.00
2055711 03/17/21 00184 COUNTY OF SAN DIEGO E632670221 03/04/21 DEVELOPER INSPECTION (FEB 2021)612.00
E602130221 03/04/21 SHUT DOWN TEST (FEB 2021)255.00
E634210221 03/04/21 SHUT DOWN TEST (FEB 2021)107.10
E634160221 03/04/21 SHUT DOWN TEST (FEB 2021)76.50
E634220221 03/04/21 SHUT DOWN TEST (FEB 2021)76.50
2055607 02/24/21 02122 COUNTY OF SAN DIEGO 021921 02/19/21 MODIFICATION TO APCD PERMIT 7,791.50 7,791.50
2055645 03/03/21 04443 CSI SERVICES INC 1031R 01/25/21 COATING INSPECTION SVCS (12/7/20-12/17/20)7,716.00 7,716.00
2055608 02/24/21 04443 CSI SERVICES INC 10161 02/08/21 COATING INSPECTION SVCS (10/13/20)3,975.00 3,975.00
2055674 03/10/21 04443 CSI SERVICES INC 10367 02/10/21 COATING INSPECTION SVCS (12/28/20-1/15/21)8,584.05
10352 02/10/21 COATING INSPECTION SVCS (12/21/20-1/16/21)7,040.85
2055746 03/24/21 04443 CSI SERVICES INC 10408 03/03/21 COATING INSPECTION SVCS (1/18/21-2/13/21)17,168.10
10416 03/03/21 COATING INSPECTION SVCS (1/19/21-2/12/21)14,660.40
2055675 03/10/21 20610 D&D PROPERTIES 9506030921 03/09/21 CUSTOMER REFUND 3,914.46 3,914.46
2055676 03/10/21 11797 D&H WATER SYSTEMS INC 2021-0163 02/15/21 W&T ANALYZER PARTS 9,720.90 9,720.90
2055747 03/24/21 11797 D&H WATER SYSTEMS INC 2021-0219 02/26/21 CL2 GAS PM 6,213.94 6,213.94
2055609 02/24/21 20598 DILAYRE, SHIELA 012221 02/22/21 EXPENSE REIMBURSEMENT 520.61 520.61
2055646 03/03/21 20609 DOUGLAS SELBY 0413030221 03/02/21 CUSTOMER REFUND 1,704.53 1,704.53
2055647 03/03/21 02447 EDCO DISPOSAL CORPORATION 19-E3 155458 02/28/21 RECYCLED WASTE SERVICE 107.11 107.11
2055712 03/17/21 00331 EMPLOYMENT DEVELOPMENT DEPT L1542649824 03/01/21 UNEMPLOYMENT INSUR (10/1/20 - 12/31/20)5,639.50 5,639.50Page 3 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
10,742.78
4,639.37
2055712 03/17/21 00331 EMPLOYMENT DEVELOPMENT DEPT L1542649824 03/01/21 UNEMPLOYMENT INSUR (10/1/20 - 12/31/20)5,639.50 5,639.50
2055677 03/10/21 20511 EYEMED 164684270 02/20/21 VISION BENEFITS ADMINISTRATION (CY2021)1,261.14 1,261.14
2055678 03/10/21 20425 FAIRWAY FORD SALES INC 210223 02/23/21 2021 Ford EcoSport SUV 22,957.35 22,957.35
2055748 03/24/21 18923 FAKHOURI, EID 031021031121 03/11/21 EXPENSE REIMBURSEMENT 149.00 149.00
2055610 02/24/21 03546 FERGUSON WATERWORKS # 1083 0743755 02/08/21 INVENTORY 6,137.44
0741342-1 01/26/21 GATE VALVES 4,605.34
2055713 03/17/21 03546 FERGUSON WATERWORKS # 1083 0744160 02/09/21 GATE VALVES 7,759.04 7,759.04
2055679 03/10/21 03546 FERGUSON WATERWORKS # 1083 0746591 02/11/21 INVENTORY 9,710.59 9,710.59
2055611 02/24/21 17888 FIRST AMERICAN DATA TREE LLC 9003400121 01/31/21 DOCUMENT SERVICE (MONTHLY)99.00 99.00
2055680 03/10/21 11962 FLEETWASH INC 2127607 02/19/21 FLEET WASH SERVICES FY21 106.74 106.74
2055612 02/24/21 11962 FLEETWASH INC 2116230 02/05/21 FLEET WASH SERVICES FY21 38.97 38.97
2055749 03/24/21 11962 FLEETWASH INC 2131944 02/26/21 FLEET WASH SERVICES FY21 100.06 100.06
2055648 03/03/21 19640 FRANCHISE TAX BOARD Ben2618301 03/04/21 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00
2055714 03/17/21 19640 FRANCHISE TAX BOARD Ben2621762 03/18/21 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00
2055715 03/17/21 20481 FRANCHISE TAX BOARD Ben2621764 03/18/21 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00
2055649 03/03/21 20481 FRANCHISE TAX BOARD Ben2618303 03/04/21 BI-WEEKLY PAYROLL DEDUCTION 25.00 25.00
2055750 03/24/21 03513 FRANKLINCOVEY CLIENT SALES INC IS10384403 02/26/21 LEADERSHIP/MANAGEMENT TRAINING 15,000.00 15,000.00
2055716 03/17/21 20620 FUELING & SERVICE TECHNOLOGIES Ref002619041 03/15/21 UB Refund Cst #0000257301 1,007.77 1,007.77
2055681 03/10/21 12907 GREENRIDGE LANDSCAPE INC 20406 02/22/21 LANDSCAPING SERVICES 9,689.00 9,689.00
2055751 03/24/21 12907 GREENRIDGE LANDSCAPE INC 20495 03/15/21 LANDSCAPING SERVICES 9,689.00 9,689.00
2055613 02/24/21 00174 HACH COMPANY 12304833 02/01/21 FY21 MONOCHLORAMINE ANALYZER SUPP 4,304.99
12300133 01/28/21 AMMONIA MONOCHLORAMINE REAGENT 334.38
2055752 03/24/21 00174 HACH COMPANY 12349015 03/02/21 AMMONIA MONOCHLORAMINE REAGENT 536.97 536.97
2055614 02/24/21 19978 HASA INC.731268 02/04/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,159.63
730613 01/29/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 550.88
730612 01/29/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 487.45
731330 02/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 445.16
731331 02/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 367.25
Page 4 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
3,981.93
6,306.75
8,017.26
100.96
6,775.00
731269 02/04/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 350.56
730354 01/28/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 272.66
731332 02/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 183.63
731267 02/04/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 164.71
2055682 03/10/21 19978 HASA INC.733118 02/19/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 2,951.38
733415 02/23/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,682.69
732339 02/12/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 500.80
733119 02/19/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 417.33
732334 02/12/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 333.87
732184 02/11/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 222.58
732965 02/18/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 122.42
732337 02/12/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 75.68
2055753 03/24/21 19978 HASA INC.734866 03/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 2,964.74
734867 03/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,446.76
734080 02/26/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,183.00
736297 02/26/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 1,020.52
734081 02/26/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 500.80
734865 03/05/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 419.56
734079 02/26/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 392.85
733838 02/25/21 AS-NEEDED SODIUM HYPOCHLORITE FY21 89.03
2055717 03/17/21 20613 HAYDEE ALDERETE Ref002619034 03/15/21 UB Refund Cst #0000184297 238.00 238.00
2055683 03/10/21 18436 HAZEN AND SAWYER DPC 200940044 02/18/21 ASSET MANAGEMENT SVCS (JAN 2021)5,103.75 5,103.75
2055754 03/24/21 02008 HELIX ENVIRONMENTAL 106424 02/28/21 ENVIRONMENTAL SVCS (FEB 2021)3,192.50 3,192.50
2055615 02/24/21 02008 HELIX ENVIRONMENTAL 105988 01/31/21 ENVIRONMENTAL SVCS (JAN 2021)7,213.77 7,213.77
2055616 02/24/21 00062 HELIX WATER DISTRICT 542832921 02/09/21 WATER USAGE (12/8/20-2/4/21)50.48
433002921 02/09/21 WATER USAGE (12/8/20-2/4/21)50.48
2055755 03/24/21 06511 HUDSON SAFE-T-LITE RENTALS 00085388 01/11/21 EQUIP RENTALS PASEO LEDERA 1,020.00 1,020.00
2055718 03/17/21 06511 HUDSON SAFE-T-LITE RENTALS 00087268 02/23/21 EQUIP RENTALS PASEO LEDERA 8,182.07 8,182.07
2055684 03/10/21 13349 HUNSAKER & ASSOCIATES 2021010016 02/09/21 LAND SURVEY SERV (1/1/21-1/29/21)4,761.00
2021010017 02/09/21 LAND SURVEY SERV (1/1/21-1/29/21)1,715.00
2020120092 02/09/21 LAND SURVEY SERV (11/28/20-12/31/20)299.00
2055617 02/24/21 15622 ICF JONES & STOKES INC 0151323 11/30/20 SAN MIGUEL HMA (OCT 2020)3,562.17
Page 5 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
11,229.14
10,637.54
25,417.54
3,916.89
2055617 02/24/21 15622 ICF JONES & STOKES INC 0151323 11/30/20 SAN MIGUEL HMA (OCT 2020)3,562.17
0151061 11/18/20 ENVIRONMENTAL SVCS (OCT 2020)2,007.50
0151246 11/23/20 ENVIRONMENTAL SVCS (OCT 2020)1,992.54
0151068 11/18/20 ENVIRONMENTAL SVCS (OCT 2020)1,895.63
0151245 11/23/20 ENVIRONMENTAL SVCS (OCT 2020)1,491.30
0151060 11/18/20 ENVIRONMENTAL SVCS (OCT 2020)280.00
2055650 03/03/21 15622 ICF JONES & STOKES INC 0149860 09/18/20 SAN MIGUEL HMA (AUG 2020)4,607.00
0149861 09/18/20 ENVIRONMENTAL SVCS (AUG 2020)4,316.99
0149920 09/22/20 ENVIRONMENTAL SVCS (AUG 2020)1,006.97
0149858 09/18/20 ENVIRONMENTAL SVCS (AUG 2020)706.58
2055685 03/10/21 15622 ICF JONES & STOKES INC 0153079 02/16/21 ENVIRONMENTAL SVCS (JAN 2021)11,955.31
0153086 02/16/21 SAN MIGUEL HMA (JAN 2021)10,192.59
0153077 02/16/21 ENVIRONMENTAL SVCS (JAN 2021)1,795.00
0153076 02/16/21 ENVIRONMENTAL SVCS (JAN 2021)1,232.50
0153088 02/16/21 ENVIRONMENTAL SVCS (JAN 2021)242.14
2055756 03/24/21 17816 INDUSTRIAL SCIENTIFIC CORP 2398631 02/28/21 GAS DETECTION PROGRAM 855.43 855.43
2055618 02/24/21 17816 INDUSTRIAL SCIENTIFIC CORP 2391161 01/31/21 GAS DETECTION PROGRAM 855.43 855.43
2055686 03/10/21 17816 INDUSTRIAL SCIENTIFIC CORP 2396967 02/12/21 GAS DETECTION PROGRAM 316.93 316.93
2055619 02/24/21 08969 INFOSEND INC 185941 01/31/21 BILL PROCESSING SERVICES 3,108.23
185940 01/31/21 BILL PROCESSING SERVICES 808.66
2055651 03/03/21 08969 INFOSEND INC 186263 02/03/21 BILL PROCESSING SERVICES 2,595.05 2,595.05
2055719 03/17/21 17106 IWG TOWERS ASSETS II LLC 611119 03/01/21 ANTENNA SUBLEASE 1,938.00 1,938.00
2055720 03/17/21 20616 JARED ALESSI Ref002619037 03/15/21 UB Refund Cst #0000243971 18.45 18.45
2055757 03/24/21 10563 JCI JONES CHEMICALS INC 846533 02/23/21 AS-NEEDED CHLORINE GAS 5,450.40 5,450.40
2055721 03/17/21 20612 JEAN FERNANDEZ Ref002619033 03/15/21 UB Refund Cst #0000168362 133.22 133.22
2055652 03/03/21 20599 JESUS CESENA Ref002618262 03/01/21 UB Refund Cst #0000055411 137.02 137.02
2055653 03/03/21 20600 KARINA NORZAGARAY Ref002618263 03/01/21 UB Refund Cst #0000216761 75.00 75.00
2055722 03/17/21 20617 KATHERINE WRIGHT Ref002619038 03/15/21 UB Refund Cst #0000244325 28.11 28.11
2055687 03/10/21 05840 KIRK PAVING INC 7726 02/16/21 AS-NEEDED PAVING SERVICE FY21 19,107.25 19,107.25
2055758 03/24/21 05840 KIRK PAVING INC 7665 11/10/20 AS-NEEDED PAVING SERVICE FY21 16,784.50 16,784.50
Page 6 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
37,988.50
2,302.50
2055758 03/24/21 05840 KIRK PAVING INC 7665 11/10/20 AS-NEEDED PAVING SERVICE FY21 16,784.50 16,784.50
2055654 03/03/21 20607 LAURIE YOUNG Ref002618270 03/01/21 UB Refund Cst #0000266388 41.47 41.47
2055723 03/17/21 20625 LEVEL4 PRESS INC Ref002619046 03/15/21 UB Refund Cst #0000266475 1,652.38 1,652.38
2055724 03/17/21 20615 LONNIE BUSSELL Ref002619036 03/15/21 UB Refund Cst #0000243379 21.32 21.32
2055620 02/24/21 20373 LUSARDI CONSTRUCTION 27100022221 02/22/21 CUSTOMER REFUND 850.00 850.00
2055688 03/10/21 10512 MAIL MANAGEMENT GROUP INC OWD-12295 02/12/21 AS-NEEDED PRINTING & MAILING SERVICES 365.79 365.79
2055725 03/17/21 20624 MARLENE CORSINI Ref002619045 03/15/21 UB Refund Cst #0000265981 40.97 40.97
2055655 03/03/21 20606 MONARCH RIDGE HOA Ref002618269 03/01/21 UB Refund Cst #0000266162 511.25 511.25
2055621 02/24/21 19765 MORAES/PHAM & ASSOCIATES 201058 01/31/21 ELECTRICAL ENGINEER SVCS (DEC 2020)2,400.00 2,400.00
2055759 03/24/21 19765 MORAES/PHAM & ASSOCIATES 201059 02/28/21 ELECTRICAL ENGINEER SVCS (FEB 2021)3,200.00 3,200.00
2055760 03/24/21 19824 MURRAYSMITH INC 202947001R 02/26/21 HYDROPNEUMATIC REPLACE (10/9/20-1/31/21)29,615.50
1926560013 02/25/21 PLAN CHECK SERVICES (JAN 2021)8,373.00
2055622 02/24/21 19824 MURRAYSMITH INC 1926560012 01/26/21 PLAN CHECK SERVICES (DEC 2020)7,986.00 7,986.00
2055726 03/17/21 20614 NAWAR AL ZEBVARI Ref002619035 03/15/21 UB Refund Cst #0000241638 16.62 16.62
2055623 02/24/21 00761 NINYO & MOORE GEOTECHNICAL 243776 11/30/20 GEOTECHNICAL SERVICES (9/25/20-10/30/20)2,320.00 2,320.00
2055761 03/24/21 03517 NOBEL SYSTEMS 15009 02/26/21 FACILITY MAP BOOK DEVELOPMENT 8,120.00 8,120.00
2055624 02/24/21 03517 NOBEL SYSTEMS 14986 01/29/21 FACILITY MAP BOOK DEVELOPMENT 12,120.00 12,120.00
2055656 03/03/21 03517 NOBEL SYSTEMS 14975 01/04/21 FACILITY MAP BOOK DEVELOPMENT 7,740.00 7,740.00
2055727 03/17/21 18332 NV5 INC 198834 01/31/21 ENGINEERING DESIGN (DEC 2020)1,687.50
193417 12/28/20 ENGINEERING DESIGN (NOV 2020)615.00
2055762 03/24/21 18332 NV5 INC 201959 03/05/21 ENGINEERING DESIGN (JAN 2021)6,247.50 6,247.50
2055763 03/24/21 03215 O'DONNELL, MICHAEL 031821 03/18/21 EXPENSE REIMBURSEMENT 240.00 240.00
2055657 03/03/21 20587 OLGA GALLEGOS 8139030121 03/01/21 CUSTOMER REFUND 47.30 47.30
2055689 03/10/21 16834 ON-SITE TECHNICAL SVCS INC 10234 02/16/21 IN-PLANT SERVICES (12/28/20-2/1/21)15,334.85 15,334.85
2055690 03/10/21 01002 PACIFIC PIPELINE SUPPLY INC S100424293.002 02/10/21 MACRO COUPLINGS 2,430.84 2,430.84
2055691 03/10/21 00137 PETTY CASH CUSTODIAN 030821 03/08/21 PETTY CASH REIMBURSEMENT (3/8/21)1,321.35 1,321.35
2055728 03/17/21 20618 PINNICK INC Ref002619039 03/15/21 UB Refund Cst #0000250356 1,834.23 1,834.23
Page 7 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
310.00
12,524.15
101,680.37
6,137.01
40,519.67
20618 PINNICK INC Ref002619039 UB Refund Cst #0000250356
2055625 02/24/21 03613 PSOMAS 169665 01/26/21 LAND SURVEY SERV (DEC 2020)170.00
169666 01/26/21 LAND SURVEY SERV (DEC 2020)140.00
2055658 03/03/21 17616 RAMIREZ, LARRY 021521 02/15/21 EXPENSE REIMBURSEMENT 130.00 130.00
2055626 02/24/21 15647 RFYEAGER ENGINEERING LLC 21027 02/01/21 CORROSION SERVICES(JAN 2021)5,305.00 5,305.00
2055764 03/24/21 15647 RFYEAGER ENGINEERING LLC 21045 03/01/21 CORROSION SERVICES (FEB 2021)3,522.00 3,522.00
2055729 03/17/21 08972 RICK ENGINEERING COMPANY 0079133 02/17/21 TRAFFIC ENGINEER SERV (11/28/20-12/31/20)12,360.70
0077792 11/03/20 TRAFFIC ENGINEER SERV (8/29/20-9/25/20)123.75
0079132 02/17/21 TRAFFIC ENGINEER SERV (11/28/20-12/31/20)39.70
2055730 03/17/21 19377 SAGEVIEW ADVISORY GROUP LLC 202040720 03/15/21 INVESTMENT ADVISOR SVC - DEFERRED COMP 5,750.00 5,750.00
2055627 02/24/21 20597 SALOMON KAMAJI 01062021 02/22/21 EXPENSE REIMBURSEMENT - KAMAJI CLAIM 793.58 793.58
2055659 03/03/21 02586 SAN DIEGO COUNTY ASSESSOR 202100161 03/01/21 ASSESSOR DATA (MONTHLY)125.00 125.00
2055731 03/17/21 00121 SAN DIEGO GAS & ELECTRIC 030821 03/08/21 UTILITY EXPENSES (MONTHLY)88,986.39 88,986.39
2055692 03/10/21 00121 SAN DIEGO GAS & ELECTRIC 030121 03/01/21 UTILITY EXPENSES (MONTHLY)67,736.77
030121A 03/01/21 UTILITY EXPENSES (MONTHLY)26,250.02
030321 03/03/21 UTILITY EXPENSES (MONTHLY)7,693.58
2055628 02/24/21 00121 SAN DIEGO GAS & ELECTRIC 020821 02/08/21 UTILITY EXPENSES (MONTHLY)5,338.14
020521 02/05/21 UTILITY EXPENSES (MONTHLY)798.87
2055660 03/03/21 00121 SAN DIEGO GAS & ELECTRIC 021921 02/19/21 UTILITY EXPENSES (MONTHLY)38,990.53
022621 02/26/21 UTILITY EXPENSES (MONTHLY)883.57
022521 02/25/21 UTILITY EXPENSES (MONTHLY)645.57
2055661 03/03/21 03298 SAN DIEGO SUPERIOR COURT 001019548 03/02/21 SMALL CLAIMS FILING FEE 50.00 50.00
2055629 02/24/21 20586 SCREENING ONE INC 20836 01/31/21 BACKGROUND CHECK 21.00 21.00
2055765 03/24/21 20586 SCREENING ONE INC 20942 02/28/21 BACKGROUND CHECKS (NEW HIRES)69.45 69.45
2055630 02/24/21 07783 SCRIPPS CTR FOR EXECUTIVE HLTH 32969 01/31/21 EXECUTIVE PHYSICALS 5,306.95 5,306.95
2055662 03/03/21 17567 SOUTHLAND PIPE CORP 098361 02/03/21 4-INCH CLASS E SLIP ON FLANGES 528.12 528.12
2055693 03/10/21 00373 ST WTR RESOURCES CONTROL BOARD FC030321 03/03/21 CERTIFICATION RENEWAL 90.00 90.00
2055732 03/17/21 00274 STATE OF CALIFORNIA 83269031521 03/15/21 LICENSE RENEWAL 180.00 180.00
2055663 03/03/21 05755 STATE WATER RESOURCES 35306022521 03/01/21 CERTIFICATION RENEWAL 105.00 105.00
Page 8 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
16,119.14
1,210.30
329,302.98
738.93
2055664 03/03/21 15974 SUN LIFE FINANCIAL 38166020121 02/01/21 LIFE INSURANCE AND STD/LTD (FEB 2021)10,032.71 10,032.71
2055733 03/17/21 15974 SUN LIFE FINANCIAL 38166030121 03/01/21 LIFE INSURANCE AND STD/LTD (MAR 2021)9,953.24 9,953.24
2055694 03/10/21 10339 SUPREME OIL COMPANY 496083 02/11/21 UNLEADED FUEL & DIESEL 10,872.57
496153 02/11/21 UNLEADED FUEL & DIESEL 5,246.57
2055631 02/24/21 18376 SVPR COMMUNICATIONS 1389 01/31/21 COMMUNICATIONS CONSULTING SERVICES 2,500.00 2,500.00
2055632 02/24/21 17704 T&T JANITORIAL INC 2018-6589 01/31/21 JANITORIAL SERVICES 5,330.00 5,330.00
2055766 03/24/21 17704 T&T JANITORIAL INC 201-6643 02/28/21 JANITORIAL SERVICES 5,330.00 5,330.00
2055734 03/17/21 20621 TAKTOSHI INOUE Ref002619042 03/15/21 UB Refund Cst #0000259916 100.36 100.36
2055633 02/24/21 19272 THARSOS INC 1301312021 02/03/21 TLOPS REDUNDANCY PROJ (JAN 2021)43,442.45 43,442.45
2055767 03/24/21 19272 THARSOS INC 1402282021 03/02/21 TLOPS REDUNDANCY PROJ (FEB 2021)32,999.83 32,999.83
2055695 03/10/21 03236 THE CENTRE FOR ORGANIZATION TCFOE3419 02/10/21 MANAGEMENT TRAINING (SPRING 2021)1,550.00 1,550.00
2055696 03/10/21 02641 TRANE US INC 311427675 01/15/21 HVAC MAINTENANCE & REPAIRS 8,737.57 8,737.57
2055665 03/03/21 20601 TSA CONSTRUCTION Ref002618264 03/01/21 UB Refund Cst #0000252379 9,072.03 9,072.03
2055634 02/24/21 00427 UNDERGROUND SERVICE ALERT 120210500 02/01/21 UNDERGROUND ALERTS (MONTHLY)1,006.60 1,006.60
2055697 03/10/21 00427 UNDERGROUND SERVICE ALERT dsb20200392 02/21/21 DIG SAFE BOARD FEES (MONTHLY)423.15 423.15
2055768 03/24/21 00427 UNDERGROUND SERVICE ALERT 220210500 03/01/21 UNDERGROUND ALERTS (MONTHLY)787.15
dsb20201018 03/01/21 DIG SAFE BOARD FEES (MONTHLY)423.15
2055635 02/24/21 20409 UNIFIED FIELD SERVICES CORP 112312020 01/29/21 RECYCLED WTR TANK COAT PROJ (DEC 2020)254,387.88
201312021 01/29/21 RECYCLED WTR TANK COAT PROJ (JAN 2021)74,915.10
2055769 03/24/21 20409 UNIFIED FIELD SERVICES CORP 302282021 03/02/21 RECYCLED WTR TANK COAT PROJ (FEB 2021)43,359.46 43,359.46
2055698 03/10/21 15675 UNITED SITE SERVICES INC 114-11607416 02/11/21 PORT. TOILET RENTAL 439.85
114-11607400 02/11/21 PORT. TOILET RENTAL 110.07
114-11607399 02/11/21 PORT. TOILET RENTAL 98.91
114-11596447 02/09/21 PORT. TOILET RENTAL 90.10
2055699 03/10/21 08402 US POSTMASTER OWD-12337P 03/09/21 POSTAGE 1,012.00 1,012.00
2055770 03/24/21 08028 VALLEY CONSTRUCTION MANAGEMENT SD30502 02/28/21 CMIS (FEB 2021)3,874.00 3,874.00
2055636 02/24/21 08028 VALLEY CONSTRUCTION MANAGEMENT SD030501 02/02/21 CMIS (JAN 2021)3,576.00 3,576.00
2055771 03/24/21 20414 WARREN ANDERSON FORD INC 721295 03/08/21 2021 FORD RANGER TRUCK 29,418.35 29,418.35
Page 9 of 10
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/18/2021 - 3/24/2021
Check #Date Vendor Vendor Name Invoice Inv. Date Description Amount
2055771 03/24/21 20414 WARREN ANDERSON FORD INC 721295 03/08/21 2021 FORD RANGER TRUCK 29,418.35 29,418.35
2055700 03/10/21 15807 WATCHLIGHT CORPORATION 705943 02/15/21 SECURITY ALARM MONITORING 2,795.92 2,795.92
2055637 02/24/21 15807 WATCHLIGHT CORPORATION 700205 12/23/20 PAX SYSTEM ALARM 4,992.84 4,992.84
2055772 03/24/21 15726 WATER SYSTEMS CONSULTING INC 5440 02/28/21 2020 UWMP ASSIST SERV (FEB 2021)560.00 560.00
2055638 02/24/21 01343 WE GOT YA PEST CONTROL INC 40251 01/26/21 AS-NEEDED BEE REMOVAL 125.00 125.00
2055773 03/24/21 01343 WE GOT YA PEST CONTROL INC 41004 02/25/21 AS-NEEDED BEE REMOVAL 125.00 125.00
2055666 03/03/21 20604 WEST COAST GENERAL CORP Ref002618267 03/01/21 UB Refund Cst #0000260869 1,727.47 1,727.47
2055667 03/03/21 20605 WEST COAST GENERAL CORP Ref002618268 03/01/21 UB Refund Cst #0000264315 1,739.26 1,739.26
2055639 02/24/21 19523 WESTCOAST ROOF CONSULTING 19691 02/08/21 ROOFING CONSULTING SERVICES 5,025.00 5,025.00
2055668 03/03/21 19866 WOOD RODGERS INC 143440 01/31/21 HYDRAULIC MODELING (JAN 2021)2,125.00 2,125.00
2055640 02/24/21 08023 WORKTERRA 0099067 01/31/21 EMPLOYEE BENEFITS 802.50 802.50
2055774 03/24/21 08023 WORKTERRA 0099300 02/28/21 EMPLOYEE BENEFITS 802.50
2055641 02/24/21 14857 XYLEM/YSI INCORPORATED 854782 01/29/21
03/17/21 12232 ZARMINA KHALIQ Ref002619032 03/15/21
802.50
NITRATE SENSOR REPLACEMENTS 9,732.40 9,732.40
UB Refund Cst #0000019736 175.00 175.00
Amount Pd Total:1,740,575.67
Check Grand Total:1,740,575.67
2055701
Page 10 of 10