HomeMy WebLinkAbout04-01-20 Board Packet1
OTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
BOARD OF DIRECTORS MEETING
BY TELECONFERENCE
2554 SWEETWATER SPRINGS BOULEVARDSPRING VALLEY, CALIFORNIA
WEDNESDAY
April 1, 2020
3:30 P.M.
AGENDA
1.ROLL CALL
2.PLEDGE OF ALLEGIANCE
3.APPROVAL OF AGENDA
4.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF NOVEMBER 6,2019 AND THE EMERGENCY MEETING OF MARCH 16, 2020
5.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TOSPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURIS-DICTION BUT NOT AN ITEM ON TODAY'S AGENDA
In lieu of in-person attendance, members of the public may submit their comments on
agendized and non-agendized items via email at boardsecretary@otaywater.gov.
Public comments submitted will be read into the record at the Board Meeting and thepublic may continue to listen to meetings. The information on how to listen to the Dis-
trict’s live streaming can be found at this link: https://otaywater.gov/board-of-direc-
tors/agenda-and-minutes/board-agenda/
INFORMATIONAL ITEM
6.THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PUR-
POSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM:
a)PRESENTATION OF 2020 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGOCOUNTY (MR. ALAN NEVIN, XPERA GROUP)
CONSENT CALENDAR
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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)APPROVE AN INCREASE TO THE CIP P2561 BUDGET IN THE AMOUNT OF$150,000 (FROM $2,300,000 TO $2,450,000) AND APPROVE CHANGE ORDER
NO. 1 TO THE EXISTING CONSTRUCTION CONTRACT WITH LAYFIELD USA
CORPORATION IN AN AMOUNT NOT-TO-EXCEED $105,535.48 FOR THERESERVOIR 711-3 FLOATING COVER AND LINER REPLACEMENT PROJECT
b)APPROVE CHANGE ORDER NO. 4 TO THE EXISTING CONSTRUCTION
CONTRACT WITH CASS CONSTRUCTION, INC. dba CASS ARRIETA IN AN
AMOUNT NOT-TO-EXCEED $1,880 FOR THE VISTA VEREDA AND HIDDENMESA ROAD WATER LINE REPLACEMENT PROJECT
c)APPROVE CHANGE ORDER NO. 6 TO THE EXISTING CONSTRUCTION
CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT
OF $40,125.89 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT
d)ADOPT RESOLUTION NO. 4378 DESIGNATING SPECIFIC STAFF POSITIONSTO BE AUTHORIZED AS AGENTS TO DEAL WITH THE STATE OF
CALIFORNIA, OFFICE OF EMERGENCY SERVICES, ON THE DISTRICT’S
BEHALF IN ALL MATTERS PERTAINING TO DISASTER ASSISTANCE
ACTION ITEMS
8.FINANCE AND ADMINISTRATION
a)APPROVE THE IMPLEMENTATION OF A 90-DAY MORATORIUM ON ANYCHANGES TO ALL DISTRICT CAPACITY AND ANNEXATION FEES (KEOP-PEN)
9.BOARD
a)DISCUSS THE 2020 BOARD MEETING CALENDARS
INFORMATIONAL ITEMS
10.THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONALPURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDAITEMS:
a)DISCUSS OTAY WATER DISTRICT’S CORONAVIRUS (COVID-19) RESPONSE(MARTINEZ)
b)UPDATE THE BOARD ON BUDGET CONSIDERATIONS RELATED TO THE
COVID-19 EMERGENCY (KOEPPEN)
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REPORTS
11.GENERAL MANAGER’S REPORT
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 – EXISTING LITIGATION [GOVERN-MENT CODE §54956.9]
OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE
NO. 37-2020-00001510-CU-WM-CTL
c)CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN-MENT CODE §54956.9]
OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE
NO. 37-2017-00019348-CU-WM-CTL
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
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All items appearing on this agenda, whether or not expressly listed for action, may bedeliberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open
meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secretary by contacting her at (619)
670-2280.
If you have any disability which would require accommodation in order to enable you to partici-pate in this meeting, please call the District Secretary at (619) 670-2280 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on March 27, 2020 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 hoursin advance of the regular meeting of the Board of Directors (Government Code Section
§54954.2).
Executed at Spring Valley, California on March 27, 2020.
/s/ Susan Cruz, District Secretary
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MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT
AND OTAY WATER DISTRICT FINANCING AUTHORITY November 6, 2019
1.The meeting was called to order by President Thompson at 3:32 p.m.
2.ROLL CALL
Directors Present:Croucher, Gastelum, Robak, Smith and Thompson
Staff Present:General Manager Mark Watton, Attorney 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 Engineering Dan Martin, Asst. Chief of Finance Kevin Koeppen, District
Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.OBSERVE A MOMENT OF SILENCE IN HONOR OF THE LATE UNITED STATES
HOUSE OF REPRESENTATIVE ELIJAH CUMMINGS
A moment of silence was held in honor of the late United State House ofRepresentative Elijah Cummings.
5.APPROVAL OF AGENDA
A motion was made by Director Smith, and seconded by Director Croucher andcarried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
to approve the agenda.
6.APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JULY 3,2019
A motion was made by Director Croucher, and seconded by Director Gastelum and
carried with the following vote:
AGENDA ITEM 4
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Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None
Absent: None
to approve the minutes of the regular board meeting of July 3, 2019. 7. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA No one wished to be heard.
CONSENT CALENDAR
8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM:
A motion was made by Director Croucher, and seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None Absent: None to approve the following consent calendar items:
a) AWARD TWO (2) PROFESSIONAL SERVICE CONTRACTS FOR AS-NEEDED ENVIRONMENTAL SERVICES WITH HELIX ENVIRONMENTAL PLANNING, INC. AND ICF JONES & STOKES, INC., EACH IN THE AMOUNT NOT-EXCEED $500,000; THE TOTAL AMOUNT OF THE TWO
(2) CONTRACTS WILL NOT EXCEED $500,000 DURING FISCAL YEARS
2020-2022 (ENDING JUNE 30, 2022) b) AWARD A CONSTRUCTION CONTRACT WITH PIPERIN CORPORATION FOR THE 1200 PRESSURE ZONE IMPROVEMENTS – PHASE I PROJECT
IN AN ANOMUNT NOT-TO-EXCEED $151,990
c) AWARD TWO (2) PROFESSIONAL SERVICE CONTRACTS FOR AS-NEEDED HYDRAULIC MODELING SERVICES WITH WOOD RODGERS AND WATER SYSTEMS CONSULTING, INC., EACH IN AN AMOUNT NOT-
TO-EXCEED $175,000 FOR FISCAL YEARS 2020 AND 2021; THE TOTAL
AMOUNT OF THE TASKS UNDER THE TWO CONTRACTS WILL NOT EXCEED $175,000
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d) APPROVE CHANGE ORDER NO. 1 TO REDUCE THE CONSTRUCTION CONTRACT WITH ADVANCED INDUSTRIAL SERVICES, INC. IN THE
AMOUNT OF $261,330.20 FOR THE 803-2 RESERVOIR
INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT e) REJECT ALL BIDS FOR THE CONSTRUCTION OF THE 850-1 RESERVOIR (P2543) AND RECYCLED WATER STORAGE TANK (R2120)
INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT
f) APPROVE CHANGE ORDER NO. 4 TO THE EXISTING CONSTRUCTION CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $49,157.89 FOR THE 870-2 PUMP STATION
REPLACEMENT PROJECT
g) APPROVE AN INCREASE TO THE BUDGET OF CIP P2574 (VISTA VEREDA WATERLINE REPLACEMENT PROJECT) IN AN AMOUNT NOT-TO-EXCEED $145,000 (FROM $1,640,000 TO $1,785,000); AND,
APPROVE CHANGE ORDER NO. 2 TO THE EXISTING CONSTRUCTION
CONTRACT WITH CASS CONSTRUCTION, INC. dba CASS ARRIETA IN AN AMOUNT NOT-TO-EXCEED $115,213.59 FOR THE VISTA VEREDA AND HIDDEN MESA ROAD WATER LINE REPLACEMENT PROJECT
h) APPROVE THE 2019 FIVE-YEAR UPDATE OF THE DISTRICT’S SEWER
SYSTEM MANAGEMENT PLAN i) APPROVE THE PURCHASE OF FIVE (5) FLEET VEHICLES THROUGH VARIOUS SOUTHERN CALIFORNIA CAR DEALERSHIPS IN THE
AMOUNT OF $223,353.94
j) APPROVE THE ISSUANCE OF A PURCHASE ORDER TO VOLVO CONSTRUCTION EQUIPMENT IN AN AMOUNT NOT-TO-EXCEED $145,155 FOR THE PURCHASE OF ONE (1) PORTABLE EMERGENCY
GENERATOR
k) APPROVE A TWO-YEAR AGREEMENT, PLUS THREE (3) ONE-YEAR OPTIONS, WITH PAYMENTUS TO PROVIDE PHONE PAYMENT SERVICES IN AN AMOUNT NOT-TO EXCEED $250,000 ($50,000
ANNUALLY)
l) ADOPT RESOLUTION NO. 4372 ESTABLISHING POLICY 54, DISCONTINUATION OF WATER SERVICE FOR DELINQUENT ACCOUNTS; AND, ADOPT ORDINANCE NO. 576 TO AMEND SECTION
34, ISSUANCE AND PAYMENT OF WATER BILLS AND APPENDIX A OF
THE DISTRICT’S CODE OF ORDINANCES EFFECTIVE JANUARY 1, 2020
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ACTION ITEMS 9. FINANCE AND ADMINISTRATION
a) APPROVE THE AUDITED FINANCIAL STATEMENTS, INCLUDING THE
INDEPENDENT AUDITORS’ UNQUALIFIED OPINION, FOR THE FISCAL YEAR ENDED JUNE 30, 2019 (DYCHITAN)
Senior Accountant Marissa Dychitan requested that the Board approve the Auditied
Financial Statements, including the Independent Auditors’ unqualified opinion, for the fiscal year ended June 30, 2019. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Dichitan’s and Mr. Joshua Calhoun’s, Teaman Ramirez and and Smith, reports. Staff responded to
questions and comments from the board.
A motion was made by Director Robak, and seconded by Director Smith and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
to approve staff’s recommendation.
b) ADOPT RESOLUTION NO. 4373 APPROVING THE EXECUTION OF CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTS IN CONNECTION WITH THE ISSUANCE BY THE OTAY WATER DISTRICT
FINANCING AUTHORITY OF ITS 2019 WASTEWATER REVENUE BONDS
IN AN AMOUNT NOT-TO-EXCEED $3,500,000 (FAKHOURI) Finance Manager Eid Fakhouri requested that the Board adopt Resolution No. 4373 authorizing the General Manager and Chief Financial Officer to approve the
execution of certain documents and authorizing certain acts in connection with the
issuance by the Otay Water District Financing Authority of its 2019 Wastewater Revenue Bonds, in an amount not-to-exceed $3,500,000. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Fakhouri’s and the District’s Municipal Advisor’s, Ms. Suzanne Harrell of Harrelll
& Company Advisors, reports. Also in attendance of the meeting were
representatives from Hilltop Securities (Ms. Robin Thomas) who serves as the Underwriter of the bonds and Hawkins Delafield & Wood, LLP (Mr. Sean Tierney) who serves as the Bond and Disclosure Counsel. Staff and Ms. Harrelll responded to questions and comments from the board.
A motion was made by Director Croucher, and seconded by Director Robak and carried with the following vote:
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Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to approve staff’s recommendation.
10. RECESS OTAY WATER DISTRICT BOARD MEETING AND CONVENE OTAY
WATER DISTRICT FINANCING AUTHORITY BOARD MEETING President Thompson recessed the Otay Water District board meeting at 4:03 p.m. and convened the Otay Water District Financing Authority board meeting.
11. ADOPT RESOLUTION NO. 2019-01 APPROVING THE EXECUTION OF CERTAIN
DOCUMENTS AND AUTHORIZING CERTAIN ACTS IN CONNECTION WITH THE ISSUANCE OF 2019 WASTEWATER REVENUE BONDS IN AN AMOUNT NOT-TO-EXCEED $3,500,000 (FAKHOURI)
Finance Manager Fakhouri indicated that this item is a continuation of the previous
agenda item. Staff is requesting that the board adopt Resolution No. 2019-01 authorizing the Authority’s Executive Director and the Authority’s Treasurer/Auditor to approve the execution of certain documents and authorizing certain acts in connection with he issuance of 2019 wastewater revenue bonds in an amount not-
to-exceed $3,500,000.
A motion was made by Director Robak, and seconded by Director Gastelum and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
to approve staff’s recommendation.
12. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING AND RECONVENE OTAY WATER DISTRICT BOARD MEETING
President Thompson adjourned the Otay Water District Financing Authority board
meeting at 4:04 p.m. and reconvened the Otay Water District board meeting. ACTION ITEMS
13. ENGINEERING AND WATER OPERATIONS
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a) APPROVE THE SEPTEMBER 24, 2019 PURCHASE AGREEMENT FOR $508,000 FOR THE CAMPO ROAD AND HILLSIDE DRIVE PROPERTY IN JAMUL
Engineering Manager Bob Kennedy indicated that staff is requesting that the Board approve the September 24, 2019 Purchase Agreement for $508,000 for the Campo Road and Hillside Drive property in Jamul and authorize the General Manager to enter into escrow to complete the sale of the property. Please reference the
Committee Action notes (Attachment A) attached to the staff report for the details of
Mr. Kennedy’s report. There was discussion concerning where the funds from the property sale would be placed. Staff indicated that the original purpose for the property was for a general
yard and stated the funds will be placed in the general fund for various potable and
sewer accounts. The board also suggested possibly placing the funds in a rate stabilization fund or to fund the CalPERS liability. A motion was made by President Thompson, and seconded by Director Croucher
and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None
Absent: None
to approve staff’s recommendation. b) REPORT ON FORMING A WORKING GROUP BETWEEN OTAY WATER
DISTRICT AND SWEETWATER AUTHORITY TO EXPLORE THE
POTENTIAL AND FEASIBILITY OF USING RECYCLED WATER TO AUGMENT EXISTING LOCAL SUPPLIES AVAILABLE TO OUR MUTUAL CUSTOMERS
Engineering Manager Kennedy indicated that Sweetwater Authority has invited the
District to form a working group to jointly explore the potential and feasibility of using recycled water to augment existing local water supplies available to the customer for both agencies. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Kennedy’s report.
The board was supportive of forming the working group through the appointment of two board members to a joint task force with Sweetwater Authority. A motion was made by Director Smith, and seconded by Director Croucher and
carried with the following vote:
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Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to appoint Directors Robak and Smith to the joint task force between Otay Water District and Sweetwater Authority.
President Thompson requested that the task force members provide a report to the board on the work accomplished by the task force in approximately six months. 14. BOARD
a) APPROVE AN AGREEMENT WITH THE LAW FIRM OF ARTIANO SHINOFF ABED BLUMENFELD CARELLI SLEETH & WADE, A PROFESSIONAL CORPORATION, FOR A TERM OF TWO (2) YEARS THROUGH DECEMBER 31, 2021, TO PROVIDE GENERAL COUNSEL
SERVICES TO THE DISTRICT
A motion was made by Director Croucher, and seconded by Director Smith and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
to approve staff’s recommendation.
b) DISCUSSION OF 2019 BOARD MEETING CALENDAR District Secretary Susan Cruz indicated that the January 2020 board meeting falls
on January 1 which is a District holiday. She asked if the board would consider
moving the meeting to the following Wednesday, January 8, 2020, at 3:30 p.m. A motion was made by Director Croucher, and seconded by Director Smith and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to move the January 2020 meeting to Wednesday, January 8, 2020, at 3:30 p.m.
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Director Croucher indicated that he will be out-of-town on January 8, 2020 and would be unable to attend the meeting.
INFORMATIONAL ITEMS
15. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM.
a) REPORT ON THE LATEST ACTUARIAL VALUATION, AS OF JUNE 30, 2019, PERFORMED ON THE NET COST OF THE ENHANCEMENT OF THE RETIREE HEALTHCARE BENEFITS; AND, THE ACTUARIAL EVALUATION DETERMINING THE NET COST OR SAVINGS OF THE
OTHER POST EMPLOYMENT BENEFIT PLAN ENHANCEMENT VERSUS
THE INCREASED EMPLOYEE CONTRIBUTION TO THE CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM Finance Manager Fakhouri provided a report on the latest actuarial valuation
performed as of June 30, 2019 and its findings on the net cost or savings of the
Other Post Employment Benefit (OPEB) Plan enhancement against the increased employee contributions to PERS. Mr. Fakhouri introduced the District’s consultant, Mr. Luis Murrillo of Nyhart, who prepared the actuarial report. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of
Mssrs. Fakhouri and Murillo’s reports.
Director Croucher stepped off the dais at 4:41 p.m. and returned at 4:43 p.m. It was discussed that through an agreement with the Employees’ Association, the
employees agreed to increase their percentage contribution to CalPERS and this
increased payment would be applied to the OPEB Trust Fund. The Trust fund is now fully funded. The annual employee contributions will continue to be made to the OPEB Fund equal to the ADC and the District will reimburse itself for the direct cash payments and implied subsidy for the fiscal year. This approach will ensure
the fund remains 100% funded while withdrawing adequate funds to cover the
annual direct cash payments. The plan was then to use the reimbursed payments to fund the CalPERS liability, which is currently 88% funded. REPORTS
16. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on the Fallbrook PUD and Rainbow MWD detachment from CWA, the
holiday employee event, lobby security enhancements, status of the AMR change
outs, and water conservation, sales and purchases. Staff responded to comments from the board.
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17. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith reported that CWA is getting Local Resource Projects (LRP)
approved. The LRP for the City of Oceanside and the City of San Diego’s Pure Water Programs were approved by CWA and MWD’s boards to receive funding through the program. He stated this is a milestone as there was a time when LRP projects were not receiving approval from MWD. He also shared that CWA
approved the Cyclical Storage Agreement which would allow excess water from the
Bay Delta to be stored in all California storage reservoirs, which then allows San Diego to take excess water into its storage reservoirs. He lastly shared that CWA approved a position that requires the entities that pollute groundwater will pay for the clean-up of the pollutants. This is also a milestone, as it was formerly the
responsibility of water agencies to pay for such clean-ups.
Director Croucher additionally shared that CWA’s Ad Hoc Fiscal Sustainability Committee is continuing to meet. He stated CWA is meeting with legislators with regard to opportunities related to the San Vicente Reservoir. He stated the MWD
board will be holding a special board meeting to discuss the rate litigation
settlement with CWA in closed session. CWA representatives will not be able to participate in this meeting, but they are continuing to work on the issue. He also shared that CWA is continuing to work on the Fallbrook PUD and Rainbow MWD deannexation issue and it was determined that San Diego LAFCO will handle the
matter. The process will start with a service review, which will include a financial
analysis. He lastly shared that CWA is working on their agricultural rate and are discussing possibly making the agriculture rate discount permanent instead of temporary.
18. DIRECTORS' REPORTS/REQUESTS
Director Robak shared from the last LAFCO Special Districts Advisory Committee that the City of Carlsbad Public Works Department filed a request with LAFCO to allow the City to serve a portion of the La Costa Golf Course, as it is within the City
of Carlsbad. Leucadia WD, however, has served the golf course since 1960 and
the problem with the request is that the City cannot provide the service at a lower cost than Leucadia WD. LAFCO, however, has formed a committee to review the request.
Director Gastelum reported that he attended the Spring Valley Fiesta where Otay
WD hosted a booth. He stated that it was well attended and it was good to get out with the community. He also stated that he was very pleased to see AB 1588, Drinking Water and Wastewater Operator Certification Program for Veterans, was approved by the legislature.
Director Smith added with regard to AB1588 that he commended staff for the work they did and that it was valuable legislation for the District and the water industry.
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He also shared that he, along with other District members, attended the Otay Mesa Chamber of Commerce event where the Otay WD received an award for Service Provider of the Year. He also shared that he attended, along with Director
Gastelum, the State Water Project and Bay-Delta Inspection Tour form October 18
to 19. Director Croucher reported that CWA’s recruitment for a new general manager is progressing and four (4) candidates are scheduled to be interviewed on November
14, 2020.
19. PRESIDENT’S REPORT President Thompson’s report is attached. He shared with regard to the Water
Conservation Garden (WCG) that he has been elected to serve for the upcoming
year as president to the WCG Joint Powers Authority board. 20. CLOSED SESSION
The board recessed to closed session at 5:33 p.m. to discuss the following matter:
a) PUBLIC EMPLOYMENT [GOVERNMENT CODE §54957] TITLE: GENERAL MANAGER b) LIABILITY CLAIMS [GOVERNMENT CODE §54956.95]
CLAIMANT: FRANCISCO MONTES DE OCA AGENCY CLAIMED AGAINST: OTAY WATER DISTRICT
c) CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION [GOVERNMENT CODE §54956.9] 1 CASE
d) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL
21. 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 6:37 p.m. and General Counsel
Jeanne Blumenfeld reported that the board accepted the retirement of General
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Manager Watton on a motion by Director Smith, seconded by Director Thompson and the motion carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
General Counsel Blumenfeld indicated that no other actions were taken by the
board in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY
22. NO MATTERS TO DISCUSS
There were no items scheduled for discussion for the Otay Water District Financing Authority board.
23. ADJOURNMENT
With no further business to come before the Board, President Thompson adjourned the meeting at 6:39 p.m.
___________________________________ President
ATTEST:
District Secretary
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President’s Report
Mitch Thompson
November 6, 2019
Board Meeting
# Date Meeting Purpose
1 1-Oct SCEDC Board Meeting Represented the District at their Monthly
Meeting
2 2-Oct OWD Regular Board Meeting Monthly Board Meeting
3 8-Oct OWD Special Board Meeting Toured District facilities
4 14-Oct Presidents & GMs Meeting
Regional agencies (Helix WD, Padre Dam
MW, Sweetwater Authority, Lakeside WD
& Otay WD) meeting to discuss items of
mutual interest
5 15-Oct Council of Water Utilities Received a presentation from the State
Water Contractors GM, Jennifer Pierre
6 16-Oct Attended the AB1588 New
Conference
News conference regarding AB1588 being
signed into law
7 17-Oct OWD Employee Apreciation
Luncheon
Appreciation event for the employees of
the District.
8 18-Oct Committee Agenda Briefing
Met w/ General Manager Watton to
review items that will be presented at the
October committee meetings
9 22-Oct Mexican American Business
Professionals Association Represented the District at the meeting
10 23-Oct Finance and Administration
Committee
Reviewed items that will be presented at
the November board meeting
11 30-Oct Water Conservation Garden JPA
Board Meeting Discussed WCG business
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12 30-Oct Otay Chamber 32nd Annual Awards
Dinner Represented the District at the event
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MINUTES OF THE EMERGENCY MEETING OF THE BOARD OF DIRECTORS
OTAY WATER DISTRICT
March 16, 2020
1.The meeting was called to order by Treasurer Thompson at 1:24 p.m.
2.ROLL CALL
Directors Present: Croucher, Gastelum (joined at 1:29 p.m.), Robak, Smith
(joined at 1:40 p.m.) and Thompson
Staff Present: General Manager Jose Martinez, General Manager Mark Watton, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief Financial Officer Joe Beachem,
Chief of Operations Pedro Porras, Chief of Engineering Rod
Posada, Chief of Administration and Information Technology Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, Asst. Chief of Engineering, Dan Martin, District Secretary Susan Cruz and others per attached list.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Robak, seconded by Director Croucher and carried
with the following vote:
Ayes: Directors Croucher, Robak and Thompson Noes: None
Abstain: None
Absent: Director Gastelum and Smith
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'SJURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
No one wished to be heard.
AGENDA ITEM 4
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6. DISCUSS OTAY WATER DISTRICT’S CORONAVIRUS (COVID-19) RESPONSE
An emergency meeting of the Board of Directors was convened to discuss the
District’s response to the COVID-19 pandemic. General Manager Jose Martinez reviewed the District’s response and the Federal, State and Local Orders. He presented how the District is responding to the Orders. There was discussion concerning the Orders and staff responded to comments and questions from the
board.
The board requested, in addition to the District posting information on its website, social media, and emails to customers regarding COVID-19, that the District create a mailer to send to customers to make them aware that the COVID-19 virus has no
impact on tap water and it is safe to drink. The mailer should also direct customers
to the District’s website for further information. The board additionally suggested that the same information be posted on the District’s fleet vehicles via a magnetic sign.
The board requested that a Special Board of Directors Meeting be scheduled on
Monday, Wednesday and Friday of each week at 12:00 p.m. until further notice for updates on the District’s COVID-19 response. It was indicated that these meetings may be canceled if there is nothing new to report or discuss.
A motion was made by Director Thompson, seconded by Director Croucher and
carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to approve the scheduling of Special Board of Directors Meetings on Monday, Wednesday, and Friday of each week at 12:00 p.m.
RECESS TO CLOSED SESSION 7. CLOSED SESSION
The board recessed to closed session at 2:03 p.m. to discuss the following matter: a) EMERGENCY DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957]
RETURN TO OPEN SESSION
8. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
3
The board reconvened from closed session at 2:51 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session.
9. ADJOURNMENT With no further business to come before the board, Treasurer Thompson adjourned the meeting at 2:51 p.m.
___________________________________ President
ATTEST:
District Secretary
4
Subscribers to the District’s Board Packets who were provided notice of the District’s March 16, 2020 Emergency Board of Directors Meeting:
Carols Davalos, Star News
Ricky Young, San Diego Union-Tribune Wendy Fry, Channel 39 Michael McSweeney, Building Industry Association San Diego Richard Drury, Lozeau Drury, LLP
Therea, Lozeau Drury, LLP
Lauren Eckert, Fallbrook Public Utilities District and Two (2) private individuals who are District customers
STAFF REPORT
TYPE MEETING: Board Meeting MEETING DATE: April 1, 2020
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 2019 Economic Outlook
Update for San Diego County Prepared by the Xpera Group
GENERAL MANAGER’S RECOMMENDATION:
Informational Report presenting the 2020 Economic Outlook Update
for San Diego County prepared by the Xpera Group.
PURPOSE:
To present to the Board the 2020 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. For the FY 2021
budget, staff is continuing the budget process used for the FY
2020 budget which split up the budget workshops into the
following 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 27th 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 3rd. At the June 3rd Board meeting,
AGENDA ITEM 6a
2
staff will be presenting the consolidated FY 2021 budget
and requesting Board approval of the following items: the
FY 2021 Operating and CIP Budget, interfund transfers, and
actions associated with recommended rate changes.
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.
Subsequent to the preparation of the attached Economic Outlook
Study the COVID-19 viral pandemic became a significant event.
The virus is still in what can be perceived as the early stages
and continues to spread throughout the country, San Diego
County, and the District service area. As the District prepares
its FY 2021 budget staff will be continuing to monitor the
impacts of the virus on the local economy, District water
volumes, potential stimulus packages, FEMA aid, debt, and other
financial matters as they arise.
The below table has been adjusted to reflect the potential
impacts of the COVID -19 pandemic and summarizes the dwelling
unit growth projections that will be used to prepare the
upcoming budget and six-year rate model.
Growth Projections (Units)
2021 2022 2023 2024 2025 2026 Total
Single Family Dwelling Units 175 125 337 539 562 450 2,188
Condominium Units 250 225 450 642 760 697 3,024
Apartment Units 482 500 1,000 1,200 1,000 1,000 5,182
Non-Residential (000's Sq ft)725 3,930 470 570 500 565 6,760
Fiscal Years
3
Holding all other factors constant, when compared to the prior
year projections for FY 2021 to FY 2025, Equivalent Dwelling
Units (EDUs) are projected to exceed prior year projections by
12%, which will result in a $3.1 million increase in capacity
fee revenues, and a $300 thousand increase in new water supply
fees for the same time period. The table below provides a
historical comparison of EDU’s.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
The $3.4 million increase in capacity and new water supply fee
projections over the five-year period from FY 2021 to FY 2025
will provide a benefit to rates over the five-year period.
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 benefit of 3.4%. The table below summarizes the
change in EDU and fee projections for the overlapping five-year
budget period.
2021 2022 2023 2024 2025 Total
Budgeted EDU's:
FY21 333 283 559 803 816 2,794
FY20 673 549 526 378 378 2,504
Capacity & New Water Supply Revenue:
FY21 $2,831,489 $2,442,375 $4,896,821 $7,139,753 $7,364,239 $24,674,677
FY20 5,718,335 4,665,526 4,461,769 3,205,103 3,205,103 21,255,835
Budget Increase/(Decrease)($2,886,846)($2,223,151)$435,052 $3,934,651 $4,159,136 $3,418,842
4
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 Forecast
Prepared for
OTAY WATER DISTRICT
Alan Nevin
Xpera Group
March 2020
Rank Nation Trillion $
1 U.S.20.5$
2 China 13.5$
3 Japan 5.1$
4 Germany 4.1$
5 California 2.9$
6 UK 2.8$
7 France 2.8$
8 India 2.7$
9 Italy 2.1$
10 Brazil 1.9$
Source: Bureau of Economic Analysis
Top 10 in GDP
World Economies
2019
State 2018 2019 Change
California 17,302,000 17,612,000 310,000
Texas 12,634,000 12,977,000 343,000
Florida 8,892,000 9,104,000 212,000
Source: BLS
Employment in the Big Three
2018-2019
2019 - Actual 2019-Required
Jobs Created: 310,000 310,000
Housing Units
Permitted based
on jobs per
household 109,000 200,000
2019 Shortage 91,000
Job:Housing Ratio
California 2019
San Diego County
Year Employment Change
2012 1,312,700 n/a
2013 1,345,000 32,300
2014 1,375,400 30,400
2015 1,415,500 40,100
2016 1,451,400 35,900
2017 1,480,500 29,100
2018 1,505,900 25,400
2019 1,540,700 34,800
Average 32,571
Source: CA EDD
Total All Industry Employment
San Diego County
YE 2012-2019
Category
No.%
Manufacturing 116,400 7%
Government 249,600 15%
Military in Uniform 110,000 7%
Health Care 189,100 12%
Professional, Scientific &
Technical 148,800 9%
Other 797,100 49%
Total 1,611,000 100%
(1) Excludes farm employment & military in uniform
Source: BLS
Civilian Employment by Industry (000) (1)
San Diego County
2019
2019
Year Single Family Multi-Family Total % MF
2015 3,253 6,640 9,893 67.1%
2016 2,341 8,325 10,666 78.1%
2017 4,056 6,385 10,441 61.2%
2018 3,489 6,345 9,834 64.5%
2019 3,023 5,059 8,082 62.6%
Source: Census Bureau
Residential Construction
San Diego County
2015-2019
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%
Source: City of Chula Vista & CIRB
Residential Building Permits
City of Chula Vista
2010-2019
Type 2020 2021 2022 2023 2024 2025 2026 Total
Single Family Detached 215 58 215 339 319 300 553 1,999
Single Family Attached 411 232 300 392 460 397 250 2,442
Apartments 482 790 1,590 1,300 850 750 750 6,512
Total 1,108 1,080 2,105 2,031 1,629 1,447 1,553 10,953
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
SFD, SFA & Apartments
Otay Ranch
2020-2026
Project Status Developer Unit Type No. Units
Sweetwater Villas Proposed Douglas Wilson Townhomes 218
Spring Valley Retail Center
(11 Acres)Proposed Lennar Townhomes 92
Sweetwater Village
Under
Construction KB Homes SFD 122
Sunbow/Olympic Pkway. .Proposed Macro-Z
Townhomes
/Courtyards 600
Total 1,032
Xpera 1.30.2020
Proposed/Under Construction Residential Development
Sweetwater Springs & Sunbow Areas
as of January 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
To
t
a
l
Av
e
r
a
g
e
For Sale
REVISED SFD 175 125 337 539 562 450 2,188 365
REVISED SFA 250 225 450 642 760 697 3,024 504
Total For Sale 425 350 787 1,181 1,322 1,147 5,212 869
REVISED apts 482 500 1,000 1,200 1,000 1,000 5,182 864
-
Total 907 850 1,787 2,381 2,322 2,147 10,394 1,732
% For Sale 47%41%44%50%57%53%50%50%
% For Rent 53%59%56%50%43%47%50%50%
Residential Development Projections
Otay Water District Service Area
Fiscal Years 2020-2026
Revised 3.2020
Fiscal Years:Measure 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
Total
Hotels (2)Rooms 153 179 250 100 682
Industrial (1)Sq.Ft.700,000 500,000 400,000 400,000 400,000 400,000 2,800,000
Amazon 3,400,000 3,400,000
Retail Sq.Ft.15,000 20,000 20,000 20,000 90,000 15,000 180,000
Office Sq.Ft.10,000 10,000 150,000 150,000 10,000 150,000 480,000
(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.
(3) Assumes 1st Chesnut project is completed in 2022-2023
Non-Residential Development Projectons
Otay Water District Service Area
Fiscal Years 2020-2026
THE RECESSION
Category
No.%No.%
Manufacturing 10,659 39%12,827 9%
Government 2,676 10%22,528 15%
Other 13,743 51%114,927 76%
Total 27,078 100%150,282 555%
(1) Excludes farm employment
Source: BLS
1929 2019
Employment by Industry (000) (1)
United States
1929 & 2019
Category
No.%
Manufacturing 116,400 7%
Government 249,600 15%
Military in Uniform 110,000 7%
Health Care 189,100 12%
Professional, Scientific &
Technical 148,800 9%
TOTAL 813,900 51%
Support Jobs 797,100 49%
Total 1,611,000 100%
(1) Excludes farm employment & military in uniform
Source: BLS
Civilian Employment by Industry (000) (1)
San Diego County
2019
2019
"The Safety Net"
GROUP PERCENT
College Educated 6-8%
Essential Trades 6-8%
Others 15-25%
The Unemployment Rate at Peak
AMERICANS ARE RESILIENT AND THERE WILL BE A RAPID AND EXUBERANT RECOVERY
10911 Technology Place
San Diego CA 92127
858-436-7770
Economic Outlook Update
Otay Water District
San Diego County
Prepared for
Otay Water District
March 2020
2
January 30 2020
Mr. Jose Martinez
General Manager Otay Water District 2554 Sweetwater Springs Blvd. San Diego CA 91978
RE: Economic Outlook Update, Otay Water District
Dear Mr. Martinez:
Xpera Group has been retained to prepare an economic outlook update for the Otay Water District for the 2021-2026 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
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 and services more than 50,000 customers and serves a population of approximately 225,000, approximately 7.0% of the County population.
4
In last year’s report, we noted evidence of strong future development in the OWD
service area. We have now updated this information to 2019 in order to project outward to fiscal year 2025/2026. This report is segmented into eight sections:
Section 1: International Outlook
Section 2: The National Economy
Section 3: The California Economy
Section 4: NAFTA
Section 5: The San Diego County Economy
Section 6: San Diego Housing Market
Section 7: Future of South County
Section 8: Future Residential Development – OWD Jurisdiction
Section 9 Projections for OWD Development Activity 2019-2025
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.
5
Table of Contents
Section Page
Section 1: International Outlook
Section 2: The National Economy
Section 3: The California Economy
Section 4: NAFTA
Section 5: The San Diego County Economy
Section 6: San Diego Housing Market
Section 7: Future of South County
Section 8: Future Residential Development – OWD Jurisdiction
Section 9 Projections for OWD Development Activity 2019-2025
Appendix
6
Section 1: International Outlook
During the next year, I will be publishing my second book. The theme of the book is the economics of the next quarter century. It will be international in scope and, of
course, focus on the United States and its role in the next quarter century. I’m
uncertain of the title but leaning toward “America – Sharing the Wealth”
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.
Gross Domestic Product (GDP) The first good news is that the GDP is rising faster than the population, thereby indicating a rising level of affluence worldwide. The Gross Domestic Product is the sum of all goods and services produced.
7
1.1
1.2
Country Billions Change % Index
1990 22,611,431,033,122$ n/a n/a
1995 30,875,322,255,033$ 8,263,891,221,911$ 1.37
2000 33,607,318,755,989$ 2,731,996,500,956$ 1.49
2005 47,500,149,179,477$ 13,892,830,423,488$ 2.10
2010 66,036,387,107,063$ 18,536,237,927,586$ 2.92
2019 85,146,659,500,000$ 19,110,272,392,937$ 3.77
(1) not inflation adjusted
Source: World Bank DataBank
Gross Domestic Product (1)
(Current Dollars)
World
2000 & 2019
8
The second good news 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.).
1.3
Perhaps even more positive is the major increase in GDP per capita in third world countries. In this sample of third world countries shown below, the percent gain in GDP per capita has almost tripled since 2000.
Country 2000 2018
Change
2000/2018 % Change
Japan 38,532$ 39,306$ 774$ 2.0%
United States 36,334$ 60,692$ 24,358$ 67.0%
United Kingdom 27,987$ 42,558$ 14,571$ 52.1%
Germany 23,718$ 48,264$ 24,546$ 103.5%
South Korea 11,947$ 31,346$ 19,399$ 162.4%
Russia 1,771$ 11,327$ 9,556$ 539.6%
China 959$ 9,608$ 8,649$ 901.9%
India 443$ 2,036$ 1,593$ 359.6%
(1) 2018 GDP converted into U.S. Dollars divided into the avg. pop.
Source: International Monetary Fund
GDP Per Capita (1)
Major Countries
2000 & 2018
9
1.4
A substantial part of their gain is the result of the rising wages in China that have
made that country less competitive in the world market. Therefore, they are moving part of their manufacturing to third world countries with lower wages. It’s also a hedge against tariffs.
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 2010 2018
Bangladesh 440$ 800$ 1,750$
Cambodia 300$ 750$ 1,390$
China 940$ 1,220$ 2,020$
Indonesia 580$ 2,530$ 3,840$
Pakistan 480$ 1,030$ 1,320$
Sri Lanka 870$ 2,410$ 4,060$
Thailand 1,980$ 4,580$ 6,610$
Viet Nam 410$ 1,250$ 2,360$
Zimbabwe 510$ 630$ 1,790$
Least Developed
Countries (2)295$ 764$ 1,079$
Average 681$ 1,596$ 2,622$
% Gain 2000-2018 285%
(1) Current U.S. Dollars, Atlas Method
Source: World Bank
Gross Domestic Product Per Capita (1)
Selected Third World Countries
2000-2018
GDP Per Capita (1)
10
1.5
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 20 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 will still add one-third 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. Also note that in the 1990-2020 period, South Korea, Japan and Russia barely
added to their population and in the next 20 years will face a declining population and a declining demand for household goods (including vehicles).
Country 2000 2010 2018
Bangladesh 1 46 97
Cambodia 1 57 119
China 7 63 115
Indonesia 2 87 120
Pakistan 1 55 73
Sri Lanka 2 86 115
Thailand 5 107 180
Viet Nam 1 127 147
Zimbabwe 2 61 89
Least Developed Countries
(2)1 33 72
Average 2 72 113
United States 39 92 124
(1) per 100 people
Source: World Bank
Mobile Cellular Subscriptions (1)
Economically Improving Countries
2000-2018
11
1.6 In the past 40 years, there have been substantial changes in the fertility rates of
both industrialized and developing countries. In the exhibit below, we show the
changes since 1980. Note the unsustainable decline in Japan and Korea and the substantial declines in the third world countries many of which have halved their fertility rate since 1980.
Country 2020 2050 Total Annual
India 1,380,004,000 1,639,176,000 259,172,000 8,639,066.67
United States 331,003,000 379,419,000 48,416,000 1,613,866.67
Mexico 128,933,000 155,151,000 26,218,000 873,933.33
Brazil 212,559,000 228,980,000 16,421,000 547,366.67
United Kingdom 67,886,000 74,082,000 6,196,000 206,533.33
Germany 83,784,000 80,104,000 (3,680,000) (122,666.67)
South Korea 51,269,000 46,830,000 (4,439,000) (147,966.67)
Russia 145,934,000 135,824,000 (10,110,000) (337,000.00)
Japan 126,476,000 105,804,000 (20,672,000) (689,066.67)
China 1,439,324,000 1,402,405,000 (36,919,000) (1,230,633.33)
Source: United Nations Dept. of Economic & Social Affairs, Population Division
Population
Major Countries
2000-2050
2020-2050
12
1.7
In this section of the report, I will focus on the three non-U.S. dominant players in the future of the world: China, Russia and India.
The China Economy China is a blend of socialism and capitalism. Although there are obvious major flaws in the socialistic system, its strength in China lies is its ability to develop the
nation’s infrastructure without being impeded by politics and environmental impact
reports.
In many respects, China is like the United States in the 1875-1975 period when we were able to develop our freeway and rail systems, airports, and major infrastructure and monuments without popular interference. One can only imagine the environmental nightmare that would have surfaced in modern times in the
development of Mt. Rushmore, the Washington Monument and the Golden Gate and Brooklyn Bridges.
Country
Change 1980-
2020 1980-1985 1990-1995 2005-2010 2015-2020
Japan -24%1.70 1.48 1.34 1.37
Korea -101%2.23 1.68 1.17 1.11
Brazil -118%3.80 2.72 1.86 1.74
China -49%2.52 1.83 1.62 1.69
Russia -12%2.04 1.55 1.46 1.82
United States -1%1.80 2.03 2.06 1.78
Western Europe 4%1.62 1.49 1.64 1.68
Saudi Arabia -200%7.02 5.55 3.23 2.34
Mexico -141%6.00 4.92 3.24 2.49
India -117%4.85 3.83 2.80 2.24
Iraq -100%7.35 5.65 4.40 3.68
Pakistan -81%6.44 5.96 4.17 3.55
Egypt -65%5.49 4.15 3.02 3.33
Sub-Sahara Africa -42%6.72 6.17 5.40 4.72
Source: United Nations 2017 Population Projections
Total Fertility (Live Births Per Women Up to Age 45)
Major Countries
1980-2020
13
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 20 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 will
still add one-third 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.
In a half century, the country’s fertility rate declined from 6.30 to 1.65 and the median age doubled from 19.3 to 37.0.
1.8
The one-child policy caused an obvious disparity between male and female births.
Compare the male:female ratio in China and the U.S. from the 1970’s until now.
Year Population 5-Year Change Annual Change Median Age Fertility Rate
1970 827,601,394 n/a n/a 19.3 6.30
1975 926,240,885 98,639,491 19,727,898 20.3 4.85 1980 (1)1,000,089,235 73,848,350 14,769,670 21.9 3.01
1985 1,075,589,361 75,500,126 15,100,025 23.5 2.52
1990 1,176,883,674 101,294,313 20,258,863 24.9 2.73 1995 1,240,920,535 64,036,861 12,807,372 27.4 1.83
2000 1,290,550,765 49,630,230 9,926,046 30.0 1.62
2005 1,330,776,380 40,225,615 8,045,123 32.6 1.61
2010 1,368,810,615 38,034,235 7,606,847 35.0 1.62 2015 (2)1,406,847,870 38,037,255 7,607,451 36.7 1.64
2019 1,433,783,686 26,935,816 6,733,954 37.0 1.65
(1) one-child policy - 1979
(2) One-child policy stopped
Source: Worldometers
Population of China
1970-2019
14
1.9
Despite the one-child policy (or perhaps because of it), the GDP of China more than doubled in the past decade.
1.10
Country 1975-1980 1980-1985 1985-1990 1990-1995 1995-2000 2000-2005 2005-2010 2010-2015 2015-2020
United States 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05China1.07 1.07 1.08 1.12 1.14 1.16 1.17 1.15 1.13
One-child Policy Begins in 1979One-child Policy Ends
Note: An estimated 400 million births were prevented in that one child time period.
Source: United Nations 2017 Population Projections
Male:Female Ratio
United States & China
1975-2020
Year GDP
Change
from
Previous
Yr.% Change
2010 6,101$ 991$ 19.4%
2011 7,575$ 1,474$ 24.2%
2012 8,560$ 985$ 13.0%
2013 9,611$ 1,051$ 12.3%
2014 10,483$ 872$ 9.1%
2015 11,063$ 580$ 5.5%
2016 11,194$ 131$ 1.2%
2017 12,156$ 962$ 8.6%
2018 13,605$ 1,449$ 11.9%
Source: International Monetary Fund
Gross Domestic Product (Millions)
China
2010-2018
15
1.11
Equally impressive is the doubling of the GDP per capita in China. In 2020, the GDP per capita is expected to reach the $10,000 level – the first second world country to reach that level of income.
Obviously, they have a way to go to match the GDP per capita of the United States, but they are still doing very well.
1.12
Year
GDP Per
Capita
Change
from
Previous
Yr.% Change Year
GDP Per
Capita
Change
from
Previous
Yr.% Change
2018 9,769$ 1,001$ 11.4%2018 62,641$ 2,713$ 4.5%
2017 8,768$ 642$ 7.9%2017 59,928$ 2,024$ 3.5%
2016 8,126$ 58$ 0.7%2016 57,904$ 1,101$ 1.9%2015 8,068$ 384$ 5.0%2015 56,803$ 1,800$ 3.3%2014 7,684$ 603$ 8.5%2014 55,003$ 1,896$ 3.6%
2013 7,081$ 743$ 11.7%2013 53,107$ 1,504$ 2.9%
2012 6,338$ 702$ 12.5%2012 51,603$ 1,720$ 3.4%
2011 5,636$ 1,075$ 23.6%2011 49,883$ 1,416$ 2.9%
2010 4,561$ 722$ n/a 2010 48,467$ 1,367$ n/a
2010-2018 5,208$ 114.2%2010-2018 14,174$ 29.2%
Source: International Monetary Fund Source: International Monetary Fund
Gross Domestic Product
China
2010-2018
Per Capita
Gross Domestic Product
Per Capita
United States
2010-2018
16
Importantly, China is not our enemy; it is a highly important partner. Xi Jinping likes
the United States. He speaks English and his daughter Xi Mingze graduated Harvard in 2014. The Russian Economy The outlook for the future of Russia depends on two things: the growth of its population and its reliance on oil.
Its population is stagnant despite the stipend of $10,000 to any family having three or more children. The low fertility rate in Russia is the result of parents wanting to have more spendable income. With two-thirds of the economy relying on consumer spending, declining household formations have a negative effect on the economy.
1.13
Russia’s production of manufactured goods is stagnant. Since 1990, its ranking
among the major countries of the world, it has declined from seventh to fifteen
place.
Year Population
Change from
Previous
Period
2000 146,596,869 n/a
2020 145,934,000 (662,869)
2030 142,227,000 (3,707,000)
2050 135,824,000 (6,403,000)
Source: World Bank
Projected Population
Russia
2000-2050
17
1.14
Its exports are predominantly natural resource-based with a relatively minor amount
from manufactured/high tech goods.
China’s economic power has been greatly strengthened by its membership in the World Trade Organization in 2002 and by its minimal investment in defense. They
have no real need to defend themselves against anyone. They have no interest in
alienating the United States because we are its largest customers for manufactured goods. Xi Jinping is much like Putin. A strong long-term survivor with no intention of ruining a very good thing.
Country 1990 2015
Major
Increase
in
Ranking
Major
Decrease
in
Ranking
China 8 1 X
South Korea 12 5 x
India 14 6 x
United States 1 2
Japan 2 3
Germany 3 4
Italy 6 7
Mexico 13 10
United Kingdom 6 8
Russia 7 15 X
Brazil 9 12
Source:UN Conference n Trade & Development 2016, Brookings Institute
Changes in Country Rank Ordering on Mfg. Output
Selected Major Countries
1990-2015
18
1.15
Russia’s major flaw is that 50% of its government’s revenues comes from oil. When oil declines in price, its government operations suffer as does its GDP.
Export
Natural
Resource High-Tech $Billions % of Exports
Mineral Fuels (oil)x 237.6$ 52.9%
Iron, Steel x 23.4$ 5.2%
Cereals x 10.5$ 2.3%
Gems, Precious Metals x 10.1$ 2.2%
Machinery including Computers x 9.2$ 2.0%
Wood x 9.0$ 2.0%
Fertilizers x 8.2$ 1.8%
Aluminum x 6.6$ 1.5%
Copper x 5.4$ 1.2%
Electrical Machinery, Equipment x 4.9$ 1.1%
Total 72.2%
Other 27.8%
Top Ten Exports
Russia
2018
19
1.16
As far as Russia being a threat to the United States, that is not a possibility.
President Putin has become a billionaire by taking an interest in Russian companies and he has no interest whatsoever is ruining his future. He has been in office for two decades and has done rather well for himself. Russia is an annoyance, but not a threat.
The India Economy
India is on the verge of becoming the largest country in the world, in terms of population. By 2030, India will have more than 1.5 billion population. In the decade between 2020 and 2030, China will gain 1.5 million persons annually while India gains more than 16.0 million persons. India is the largest democracy in the world,
with the U.S. in second place.
Year GDP
Change
from
Previous
Yr.% Change
Oil Per
Barrel
2010 1,525$ 991$ 19.4%77$
2011 2,052$ 527$ 34.6%107$
2012 2,210$ 158$ 7.7%109$
2013 2,297$ 87$ 3.9%106$
2014 2,060$ (237)$ -10.3%96$
2015 1,364$ (696)$ -33.8%49$
2016 1,283$ (81)$ -5.9%41$
2017 1,579$ 296$ 23.1%53$
2018 1,657$ 78$ 4.9%70$
Source: World Bank
Gross Domestic Product (Millions)
Russia
2010-2018
20
1.17
India has continued to have major population gains, despite the fact that their total fertility rate has declined by more than half in the last 40 years and is now at 2.24. China, as well, has had a decline due to its one-child policy and is now at the 1.69
level, about the same as Europe. The decline in the fertility rate in India has
contributed greatly to its per capita increase in GDP.
1.18
The reduction in fertility has had a major effect on the composition of the two countries. In 1980, both countries had an under 18 population in the 40+% range.
Today, India’s under 18 population accounts for 31.7% of its population while
China’s under 18 population has declined to 21.1% of its population.
This massive decline in China’s under 18 population has major implications for the future economic growth of that country.
Country 2000 2020 2030 2000-2020 2020-2030 2000-2020 2020-2030
China 1,290,551,000 1,439,324,000 1,451,661,000 148,773,000 12,337,000 14,877,300 1,542,125
India 1,016,209,642 1,380,004,000 1,510,082,000 363,794,358 130,078,000 36,379,436 16,259,750
Source: United Nations Dept. of Economic & Social Affairs, Population Division
Population Projection
India and China
2000-2030
Total Change Annual Change
21
1.19
Similarly, the over 65 population is 6.6% of India’s population compared to double
that in China. That statistic as well has implications for the availability of labor in future decades.
1.20
The GDP of both China and India has increased dramatically in the past two
decades. India’s GDP has increased more than five times in the past two decades, starting from a much lower base than that of China.
22
1.21
Similarly, the GDP per capita has increased dramatically in India in the past two decades but is still only 1/5th that of China.
1.22
One of the reasons why China’s economic growth has been so ebullient is that 31%
of its exports are High Tech, compared to only 9% of India’s exports. India has made virtually no gains in the past decade in the percentage of its manufactured goods that are high tech.
Country 2000 2019 Change % Change
China 1,211$ 14,220$ 13,009$ 1074%
India 468$ 2,970$ 2,502$ 535%
Source: World Bank DataBank and CIA Fact Book
Gross Domestic Product
(Current Dollars - Millions)
India and China
2000 & 2019
Country 2000 2018
Change
2000/2018 % Change
China 959$ 9,608$ 8,649$ 901.9%
India 443$ 2,036$ 1,593$ 359.6%
(1) 2018 GDP converted into U.S. Dollars divided into the avg. pop.
Source: International Monetary Fund
GDP Per Capita (1)
India & China
2000 & 2018
23
1.23
China’s national political power has been responsible for its exceptional economic
growth. India, unfortunately, does not have a governmental structure with the same
power. Therefore, India’s economy will continue to grow but it needs to enhance its efforts to increase its percentage of high-tech goods for export.
Summary Exhibit –Countries The following exhibit summarizes a comparison of the United States with India, China and Russia.
Country
Exports as
% of GDP
High Tech as %
of Exports
China 19%31%
India 19%9%
Source: World Bank DataBank
(1) High-technology exports are products with high R&D intensity
such as aerospace, computers, pharmaceuticals, scientific
instruments and electrical machinery.
High Tech as % of Mfgd. Goods (1)
Selected Major Countries
2018
24
1.24
Factor United States India China Russia
Population
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) % Change 15%19%-3%-7%
% of Pop. Under Age 18
1980 28%45%43%26%
2020 22%32%21%21%
Fertility
1980 1.80 4.85 2.52 2.04
2020 1.78 2.24 1.69 1.82
GDP$ (Millions)
2000 10,252$ 468$ 1,211$ 259$
2019 21,340$ 2,970$ 14,220$ 1,610$ Change 11,088$ 2,502$ 13,009$ 1,351$
% Change 52%84%91%84%
GDP/Per Capita
2000 36,334$ 443$ 959$ 1,771$
2019 60,692$ 2,036$ 9,608$ 11,327$
Change 24,358$ 1,593$ 8,649$ 9,556$
% Change 67%360%902%540%
Source: World Bank, International Monetary Fund
Comparison of Major Countries
Economic and Demographic Factors
25
Section 2: The National Economy
As we move into election year 2020, it is interesting to note that the Nation is now in its 11th year of recovery, after a lengthy and devastating recession.
Looking back ten years and quoting our 2019 report for the Otay Water District, the economy was in a weakened position:
Crude oil was $145 per barrel;
30-year mortgages were at 6.0%;
The unemployment rate was 7.2% and climbing;
Lehman Brothers and Bear Stearns had collapsed;
Construction jobs had declined by 20%, losing 115,000 jobs per month; and
U.S. resale home prices had declined 13% from their 3rd quarter 2006 peak.
Gradually, over the past decade, the economy has strengthened and has experienced more than 125 continuous months of expansion. There are continual stories about the coming recession, but recessions are not mandatory.
But let’s stop and look at the National economy. For more than a decade we have been on an upward bent.
In the past decade, the U.S. has added 10 million jobs and has seen its
unemployment rate plummet from 10.0% to 3.5% in 2019.
In 2010, the U.S. reported 3.0 million job openings. Now it’s 7.3+ million.
Inflation remains modest: the 2.0% range.
For the past six years, the U.S. has sold 17 million new cars each year, a
wonderful indicator of consumer confidence. A decade ago, the average new
car sold was $22,000 and this year $37,500. Love those Escalades and
Rams.
Sales of used cars has been growing at a pace of a million more each year
and this coming year will reach 40.0 million.
Most obviously, the price of money has declined significantly and 30-year
fixed rate mortgages can be obtained in the neighborhood of 3.0%. And they
offer very low down payments. Or how about 2.75% for a 15-year fixed. It’s
virtually free money and there is lots of it to spread around.
Because the cost of money is nearing zero in many other countries, money is
pouring into the U.S. where interest rates are comparatively higher.
26
The Gross Domestic Product (GDP) – the sum of all goods and services sold
– is in the 2.5-3.0% annual growth range (not quite as good as in the last
recovery, but still acceptable).
Retail sales continue to blossom as Americans enjoy higher household
incomes and remain confident in the economy. Indicative of this is stock
prices. This year Target, Walmart and Amazon are up 24.4%, 67.5% and
18.9% respectively. Sorry Sears.
Gold is on the rise, up almost 20% this year ($1,500 +/- an ounce)
And lastly, but rather important, owner equity in real estate has just hit a new high
of $18 trillion. That’s up from the 2006 peak of $14 trillion. “Tappable” equity
(equity that homeowners can borrow against) reached an all-time high of $6.3
trillion in 2019.
The future: we know from history that presidents rarely have a meaningful impact on the state of the economy so will anticipate that the 2020 presidential election may be eventful, loud and colorful, but it will have little to do with the growth of our Nation in the next few years.
2.1 The Path of the GDP
The percentage increase in the Gross Domestic Product (GDP) in this recovery has
been anemic compared to past recoveries. In this recovery the GDP has increased at about 2.0-2.5% annually compared to almost twice that in past recoveries.
27
2.1
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. Positive Employment Trends Since the bottom of the decline in 2009, the Nation has added more than 18.0 million jobs, a pace of more than 2.3 million annually. Although the rate of gain has slowed somewhat recently, the Nation continues to add 175,000 to 200,000 jobs
monthly. This year the Nation will reach 160 million jobs.
28
2.2
2.3
Year Total Annual
Annual
Change
2010 139,064 (952) (106)
2011 139,869 805 89
2012 142,469 2,600 289
2013 143,929 1,460 162
2014 146,305 2,376 264
2015 148,834 2,529 281
2016 151,436 2,602 289
2017 153,337 1,901 211
2018 155,761 2,424 269
2019 (F)158,500 2,739 304
2020 (F)161,000 2,500 278
Source: Bureau of Labor Statistics
Total Employment
United States
2010-2020 (F)
29
As a result of job increases, the unemployment rate has plummeted and today
stands at approximately 3.9% nationally.
2.4
One of the key reasons why the unemployment rate has declined is that the labor
force participation rate has been on a sharp declining path since the recession.
There is some indication that as employers are scampering for new labor, and wages rise, the participation rate is increasing.
30
2.5
Those returning to the labor force are most often persons over 50 who may have
been retired from other jobs and for several reasons return to the work force. They
include persons who realize they do not have enough funds set aside to retire; persons who are bored; persons who have moved to new metropolitan areas and want to get involved in the community.
Also, there are those who realize that their current skill levels are not as advanced
as they need to be to earn a decent income; return to school and prepare for a new career. 2.3 Economic Drivers
The Bureau of Labor Statistics has projected employment growth by industry through 2028. They are showing Health Care and Social Services, Professional and
Business Services and the Leisure and Hospitality Industries leading the way.
31
2.6 In terms of occupational growth, The Bureau of Labor Statistics has projected these economic drivers out through 2028. Health and Social Services lead the way with computer and mathematical occupations in a strong position.
32
2.7
Overall, a rather positive outlook in the next year and beyond. 2.4 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.
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.
33
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.
2.8
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.
The millennial population is at the heart of the rising economy.
34
2.9 2.5 Residential Construction
The residential construction industry began its recovery from the recession in 2012. Since then, there has been a steady advancement in both single-family and multi-
family production. Multi-family includes both condominiums and rental housing. 2019 marked the strongest year since 2012 and we project that 2020 will equal 2019. It is possible that with continuingly low interest rates, the demand for single family housing will increase, thereby drive up the 800,000 projection to higher
levels.
35
2.10 2.6 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 construction is anticipated to reach the $800 million level.
2.11
Year Total Single Family Multi-Family
2013 991 621 370
2014 1,052 640 412
2015 1,182 696 486
2016 1,206 751 455
2017 1,282 820 462
2018 1,328 855 473
2019 1,350 800 450
2020 (f)1,300 800 500
Source: Census Bureau
2013-2020 (F)
Residential Units Authorized (000)
United States
Year Private Sector PublicSector Total
2015 393,934 289,688 683,622
2016 430,653 284,531 715,184
2017 437,113 290,047 727,160
2018 459,733 310,156 769,889
2019 450,251 325,386 775,637
2020(F)465,000 350,000 815,000
Source: Census.go v
Millions
Non-Residential Construction
United States
2015-2020 (F)
36
2.7 Forecast of the U.S. Economy: 2019-2021
It would be presumptuous of us to look beyond the 2020 elections in terms of the
economic future of the Nation, but I will summarize here, in bulletpoint fashion, the national outlook for the next three years:
The population will continue to increase by more than 2.0 milllion
annually;
Employment will proceed at a pace of 2.0-2.25 million jobs annually, somewhat less than in the past five years;
The unemployment rate will remain in the 3.5-4.0% range;
30-year mortgage rates will remain in the 3.0-3.5% range;
Oil prices per barrel will remain in the $60-70 range;
Construction will parallel 2017-2019, with a total of 1.3 million residential units;
The projections for residential construction will be affected by the volume of replacement from natural disasters and the changes to the financing of affordable rental housing; and
The non-residential construction market will continue to expand
thanks to major increases in infrastructure and military spending.
37
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.
California is now the 5th largest “nation” in the world in terms of GDP, barely passing the UK and France and India. Texas is in 11th place.
3.1
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.
Rank Nation Trillion $
1 U.S.20.5$
2 China 13.5$
3 Japan 5.1$
4 Germany 4.1$
5 California 2.9$
6 UK 2.8$
7 France 2.8$
8 India 2.7$
9 Italy 2.1$
10 Brazil 1.9$
Source: Bureau of Economic Analysis
Top 10 in GDP
World Economies
2018
38
3.2 3.1 Population of California
In my book “The Great Divide” the nation is segmented into two types of states:
growth and non-growth. The 15 growth states account for 75% of all the population growth in the Nation
Rank Millions $Change % Change
2013 2,262,771$ 118,274$ 5.2%
2014 2,396,552$ 133,781$ 5.6%
2015 2,558,171$ 161,619$ 6.3%
2016 2,663,396$ 105,224$ 4.0%
2017 2,809,922$ 146,527$ 5.2%
2018 2,968,118$ 158,195$ 5.3%
2019 (F)3,116,523$ 148,406$ 5.0%
2020 (F)3,272,350$ 155,826$ 5.0%
Source: CA Department of Finance
Gross Domestic Product
California
2013-2020 (F)
39
3.3
And perhaps more important, for this report, is that California, Texas and Florida accounted for 40% of the total population gains in the United States in the past year. California continues to grow as a result of both natural household formation (more births than deaths) and in-migration from both within the U.S. and from foreign lands.
California had a net gain of 312,000 persons in Fiscal Year 2018-2019. By the end of 2020, California will have a population of 40,000,000. This past year, the population gain was one of the lowest in many years. There are
two factors creating the slowdown: a long-term decline in natural population increase and a higher rate of out-migration. Normally, we have a higher rate of immigration, but the slowdown in cross-border immigration is taking its toll. Reportedly, blue collar workers are moving out and white collar workers are moving in.
The Great Divide
40
3.4
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41
3.2 California Employment
California remains a mighty job machine.
3.5 California now has 17.5 million payroll jobs and is adding more than 300,000 jobs annually. The state is adding more jobs each year than population. The number of
jobs gained has been declining but appears to have leveled out in 2018.
3.6
State 2018 2019 Change
California 17,147,917 17,456,718 308,801
Texas 12,560,000 12,860,000 300,000
Florida 8,828,000 9,052,000 224,000
Source: BLS
Employment in the Big Three
2018-2019
Year Employment Change
2014 15,577,383 n/a
2015 16,051,417 474,034
2016 16,478,517 427,100
2017 16,818,692 340,175
2018 17,147,917 329,225
2019 17,456,718 308,801
2020 (F)17,776,718 320,000
Source: California EDD
Payroll Employment
California
2014-2020 (F)
42
The unemployment rate is slightly above the National average, but is maintaining
the .4% spread on a continuing basis. Note also that the unemployment rate is reported for only civilians. California has more than 190,000 active military and they are not included in the employment statistics (and they are fully employed).
3.7
California’s economic drivers are moving forward with gains in all of the major
categories:
3.8
Overall, the California economy is moving forward with great strength and vivacity.
Industry 2018 2019 Change
Professional & Business Services 2,678,700 2,762,400 83,700
Professional , Scientific &
Technical Services 1,268,100 1,329,200 61,100
Leisure & Hospitality 1,986,200 2,035,000 48,800
Manufacturing 1,325,800 1,345,000 19,200
Information 545,300 566,000 20,700
Trade Transportation & Utilities 3,055,100 3,059,000 3,900
Federal Employment 245,100 248,200 3,100
Source; CA EDD
California Employment
Major Basic Industries
2018-2019
43
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 2017, 2018 and in 2019. It appears likely that more than 100,000 units
will be produced in 2020 as well.
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. The National average is 64%. 3.4 Non-Residential Construction
2018 was the strongest year for non-residential construction in modern California history, totaling more than $32 billion.
We anticipate that 2019 will better the 2018 total as a result of both military and infrastructure spending.
Year Total
Single
Family Multi-Family
2017 114,780 57,132 57,648
2018 113,502 58,831 54,671
2019F 110,000 60,000 50,000
2020F 110,000 60,000 50,000
Source: U.S. Census & Xpera Group
California Residential Building Permits
2017-2020F
44
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
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)
45
Section 4: The Nafta Countries
On November 30 2018, President Donald J. Trump, Mexican President Enrique
Peña Nieto, and Canadian Prime Minister Justin Trudeau signed the new United
States-Mexico-Canada Agreement (USMCA). President Trump called the new
USMCA the “most modern, up-to-date, and balanced trade agreement in the history
of our country.”
Mexico and Canada remain the first two export countries for California goods. In the
2015-2018 period, U.S. exports to Mexico increased 15% and 3% to Canada.
4.1 In terms of imports, Mexico is No. 2 and Canada No. 4. Our trade with those two countries remains stable.
The data for 2019 has not yet been released.
Rank Country 2015
Value
2016
Value
2017
Value
2018
Value
Increase
2015-
2018
%
Change
1 Mexico 26,788 25,260 26,773 30,763 3,975 15%
2 Canada 17,262 16,233 16,843 17,698 436 3%
3 China 14,384 14,323 16,432 16,339 1,955 14%
4 Japan 11,743 11,759 12,830 13,030 1,287 11%
5 Korea,
South
8,683 8,211 9,589 9,975 1,292 15%
6 Hong Kong 8,761 9,662 12,109 9,906 1,145 13%
7 Taiwan 7,727 6,987 6,326 6,831 -896 -12%
8 Germany 5,344 5,350 6,038 6,592 1,248 23%
9 Netherlands 5,634 5,457 5,785 6,429 795 14%
10 India 4,568 5,129 5,014 6,122 1,554 34%
Source: Census.gov, Foreign Trade
Exports from California ($Millions)
NAFTA Countries
2015-2018
46
4.2
In terms of imports, Canada and Mexico are the Nation’s No. 4 and 2 trading
partners, with China in first place. We import more than export with Mexico and in 2018 are just about on par with Canada. Our exports to Mexico are a blend of goods, but most are related to automotive
parts and electronics. Going the other way, the No. 1 import from Mexico is
automobiles, followed by electronics, medical equipment and agricultural goods.
Rank Country 2015
Value
2016
Value
2017
Value
2018
Value
Increase
2015-
2018
% Change
1 China 143,636 143,998 159,114 161,203 17,567 12.2%
2 Mexico 45,086 46,303 46,193 44,014 -1,072 -2.4%
3 Japan 38,499 41,314 40,476 33,633 -4,866 -12.6%
4 Canada 27,865 27,783 28,669 27,101 -764 -2.7%
5 Korea,
South
15,393 14,020 15,774 16,630 1,237 8.0%
6 Malaysia 16,817 16,470 16,387 14,797 -2,020 -12.0%
7 Taiwan 12,527 12,324 13,396 14,492 1,965 15.7%
8 Vietnam 8,834 10,925 12,457 13,573 4,739 53.6%
9 Germany 12,707 11,204 11,500 12,397 -310 -2.4%
10 Thailand 10,046 10,076 10,327 10,301 255 2.5%
Source: Census.gov, Foreign Trade
Imports to California ($Millions)
NAFTA Countries
2015-2018
47
4.3 California Imports From and Exports to Mexico
The following exhibit notes the goods that flow from California to Canada and vice versa:
48
4.4
California Exports to Canada Billions $
Vehicles 5.10$
Agricultural Goods 3.76$
Electrical Machnery
Crude Oil
Plastics
Canada Exports to California Billions $
Automobiles 24.10$
Crude Petroleum 1.80$
Machinery & Equipment 1.20$
Electronics 1.10$
Plastics 0.80$
Source:Canada Library of Parliament, Research
Publications, Canadian Trade & Investment
Activity: Canada-California
California/Canada
Imports and Exports
49
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, not that much more than the growth pace of San Diego County.
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.
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
50
It is difficult to calculate the economic impact of Tijuana on San Diego, but we know
that 20,000+ persons cross the border to work in San Diego each day and we also know that during the holiday season, a substantial portion of the retail sales are to Mexican citizens (particularly at the border discount stores and in the upper-end stores in Fashion Valley).
What we do not have a strong sense of is the cross-border economic impact of the maquiladora plants or the number of the maquiladora managerial work force that lives in San Diego.
San Diego/Tijuana is the busiest land border crossing in the western hemisphere.
The checkpoint processes an average of 70,000 northbound vehicle passengers and 20,000 northbound pedestrians each day. The recent history of in-bound traffic is shown here:
4.6 A massive reconfiguration of the border crossing has just been completed at a cost of $750+ million.
The 905 Port of Entry The port of entry from the 905 connecting with SR-11 and 125 is the subject of a major study that was completed last year. The Otay Mesa POE has become the
busiest California-Mexico commercial border crossing with more than $50 billion in goods passing through it. Caltrans projects that by 2030, there will be 900,000 northbound commercial vehicles passing through the POE.
Category 2000 2010 2019
Personal Vehicles 46,262,771 36,948,969 29,913,608
Pedestrians 7,221,012 6,439,952 8,103,996
Source: U.S. Dept. of Transportation
Inbound Traffic
San Ysidro Border
51
4.7
Northbound border crossings at the Otay Mesa Port of Entry have increased dramatically since 2010 as have the individual crossings, as shown in these two exhibits.
4.8
Year
Private
Vehicles Buses Trucks Total
2010 3,933,036 34,630 729,605 4,697,271
2015 6,933,472 38,303 829,581 7,801,356
2018 7,708,214 29,533 962,577 8,700,324
2010-2018
Change 3,775,178 (5,097) 232,972 4,003,053
% Change 96%-15%32%85%
Northbound Vehicle Crossings
Otay Mesa Port of Entry
2010-2018
52
4.9
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 two years, there
have been more than 2,000 murders each year. Preliminary numbers indicate a
2,200 murders in 2019. By way of comparison, California, with 20 times the population, had 1,700 murders in 2018. And San Diego had 86 murders in 2018. Notably, San Diego has the
lowest crime rate of any major city in the United States.
Year
Pvt.
Vehicles Buses Pedestrians Total
2010 7,051,569 147,129 2,251,021 9,449,719
2015 12,225,410 138,590 3,411,485 15,775,485
2018 13,318,027 42,389 3,391,349 16,751,765
2010-2018
Change 6,266,458 (104,740) 1,140,328 7,302,046
% Change 89%-71%51%77%
Source: US DOT
Northbound Individual Crossings
Otay Mesa Port of Entry
2010-2018
Passengers
53
4.10
Section 4: The San Diego County Economy
In this section, we discuss the population and employment changes in San Diego
County. 4.1 Population Change, San Diego County San Diego County remains one of the most dependably growing metropolitan areas in the United States, although its growth rate is slowing down. The past few years the rate of growth has slowed to the 20,000 to 26,000
population range. Its slowdown has been partially attributed to the rapid expansion of the Temecula/Murrieta housing market, whose home prices are substantially less than San Diego County and are drawing the San Diego population base northward.
54
4.1
The population change from 2018 to 2019, as projected by the California Department of Finance, shows a dramatic slowdown of population growth, predominantly because of an out-migration of 20,731.
4.2
Year Population
Annual
Change
2012 3,153,521 n/a
2013 3,193,688 40,167
2014 3,230,269 36,581
2015 3,264,449 34,180
2016 3,284,477 20,028
2017 3,309,509 25,032
2018 3,344,438 34,929
2019 3,357,442 13,004
2020 3,377,442 20,000
No.223,921
%7.1%
Source: CA DOF
Change in Population
San Diego County
2012-2020 (F)
Change 2010-2020
Total Population Change 2018-2019 Components of Change
County Revised July 1, 2018 Preliminary July 1, 2019 Number Percent Births Deaths Natural Increase Net Migration Net Immigration
Net Domestic Migration
San Diego 3,344,438 3,357,442 13,004 0.39 39,748 21,995 17,753 -4,749 15,982 -20,731
Source: CaDOF
Components of Population ChangeSan Diego County
2018-2019
55
Tracking the components of population change over the past few years shows that
the natural increase (more births than deaths) has been on a declining path. DOF is showing the strongest net domestic migration outflow in the past five years. Notice, however, that net in-migration has remained relatively steady.
4.3
Looking to the future, DOF is projecting annual growth in the 20,000 range in the next 20 years.
4.4 Millennials will continue to drive the consumer economy, including the housing
market. During the next 20 years, the millennial population of San Diego County is
projected to increase by 137,787 or 18%. This age group is responsible for
Year Population Change
Annual
Change
2020 3,390,529 289,461 28,946
2030 3,608,286 217,757 21,776
2040 3,799,752 191,466 19,147
Source: CA DOF
Population Projections
San Diego County
2020-2040
56
substantial spending on home furnishings and dining out and drives the apartment
market and entry level housing market. Please also notice the 375,284 (71%) growth in the over 65 population. It is that generation that will have a major demand for health care services and drives the
cruise ship market, but does not have an inclination to spend meaningful dollars on
home furnishings, automobiles or out-of-house dining and entertainment.
4.5
4.3. Employment and Economic Situation
San Diego County continues to be one of the strongest and dependable metropolitan areas in the Nation as a result of its highly diversified employment
base.
In the past six years, the County has averaged 30,000 new civilian jobs annually, outpacing the population gain.
The result of this situation is that the civilian unemployment rate has dipped below
3.0%. If the statistics included the military (100,000 in uniform, 100% of whom are employed), the unemployment rate would be still lower.
57
4.6
In 2019, the County added 23,000 jobs, modestly below the average of the past six years, but still evidence of a strong economy.
Year Employment Change
2016 1,423,000 38,000
2017 1,453,000 30,000
2018 1,485,000 32,000
2019 1,508,000 23,000
2020 (F)1,533,000 25,000
Source: CA EDD
Wage & Salary Employment
San Diego County
2016-2020 (F)
58
4.7
Local economies expand as a result of the growth in economic drivers. An economic driver is an industry whose source of revenue is mostly from outside the metropolitan area.
Most metropolitan areas have, at best, two or three economic drivers. San Diego is most fortunate to have eight basic economic drivers as shown on the following page. Unquestionably, the military continues to dominate and accounts for as much as 25% of the total gross domestic product.
But the other seven are also meaningful to the economy and, for the most part, continue to expand.
59
4.8
Although not technically an economic driver, we want to include the construction sector because of its economic impact and a rapid return to health. Since 2012, the construction sector has increased jobs by 42%. The construction industry is also highly important because of its multiplier factor.
For every dollar spent in construction, more than twice that ripples through the local economy. Few industries can boast of that multiplier.
Category No.
Professional & Business Services 254,200
Leisure & Hospitality 193,900
Manufacturing 115,400
Department of Defense (Uniformed)95,000
Colleges & Universities 49,200
Federal Government (non-defense)24,800
Information 24,300
Department of Defense (Civilian)22,000
State Government 17,200
Total 796,000
Source: US BLS
Economic Drivers
San Diego County
2019
60
4.4 Income of the Population
The most recent American Community Survey produced by the Census Bureau
shows a median household income of $79,079. According to the ACS, there are 1.1
million households in the County and fully 40% have a household income of more than $100,000 and another 13% have an income from $75,000-99,999.
4.9 4.5 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 5.8%.
Range No.%
Under $25,000 160,589 14.2%
$25,000-34,999 79,164 7.0%
$35,000-49,999 118,746 10.5%
($0,000-74,999 142,495 12.6%
$75,000-99,999 142,495 12.6%
$100,000+447,841 39.6%
Total 1,130,911$ 100.0%
Median 79,079$
Source: Census,gov, ACS 2018, Table S1901
Household Income
San Diego County
2018
61
4.10 4.6 Gross Domestic Product
The GRP 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.
4.11
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 512,372$ 60,713$ 13.4%
2018-2019 543,681$ 31,309$ 6.1%
2019-2020 574,962$ 31,281$ 5.8%
Source: San Diego County Assessor
Assessed Valuation
San Diego County
2014-2020
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
62
Section 5: 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. 5.1 Owner/Renter Tenure
In most of the Nation, the owner/renter tenure is 2/3 owned and 1/3 rent. 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 ratio will approach the National average.
5.1
Year Owner Renter Owner Renter
1980 358,614 282,574 55.9%44.1%
2000 551,461 443,216 55.4%44.6%
2010 591,025 495,840 55.9%44.1%
2018 650,143 574,232 53.1%46.9%
Total
Change
1980-2018 291,529 291,658
Source: American Fact Finder, Census Bureau; 1980 Census
Household Tenure
San Diego County
1980-2018
No. Households % Tenure
63
5.2 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.
5.2
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
64
5.3 5.3 Recent and Current Housing Construction
After a dismal decade of limited housing production, residential construction is moving forward. The permit count is still driven by the multi-family segment.
It is notable that the production of units expanded substantially in 2017 and 2018 but has receded since then. It is likely that 2020 production will dip to the 8,000 unit level.
Year Valuation Change Change %
2015-2016 427,932,000,000$ 23,233,000,000$ 5.7%
2016-2017 451,659,000,000$ 23,727,000,000$ 5.5%
2017-2018 512,372,000,000$ 60,713,000,000$ 13.4%
2018-2019 543,681,600,000$ 31,309,600,000$ 6.1%
2019-2020 574,962,419,000$ 31,280,819,000$ 5.8%
Source: San Diego County Assessor
Valuation of Properties
San Diego County
FY 2015-2020
65
5.4
The multi-family component is almost entirely 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 2020, there is another burst of downtown high-rise rental construction underway. In 2018 and 2019, countywide, most of the multi-family production was apartments,
but several hundred were for sale townhome condominiums (which the Census
Bureau counts as multi-family). There were also several thousand units of affordable housing developed in the County in the past year.
It is likely that the 2020 total will be on the same order as 2019.
Year Total Single Family Multi-Family % MF
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 10,441 4,056 6,385 61.2%
2018 9,834 3,489 7,009 71.3%
2019 8,500 3,000 5,500 64.7%
2020 (F)8,000 3,000 5,000 62.5%
Source: Census Bureau
Residential Construction
San Diego County
2014-2020
66
5.4 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:
As a result of a major increase in shovel-ready dirt, predominantly in south County, in the Rancho Penasquitos area along I-15 and along Highway 78 in north county, there will be a substantial increase in overall lot supply in the
next few years;
The multi-family category, which includes both sale and rental product, will experience a substantial increase in townhome-type for sale housing;
Apartment construction, which has been in a boom mode the past three years, will slow down; and
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 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 ebullient
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. And there is the matter of home pricing. Most of the single family for sale housing is in the $600,000+ range, substantially out of range for most local homebuyers, especially first time buyers.
67
5.5
Year Total
Single
Family
Multi-
Family % MF
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 10,500 3,500 7,000 66.7%
2018 9,834 3,489 7,684 78.1%
2019 8,500 3,000 5,500 64.7%
2019-2020 8,000 3,000 5,000 58.8%
2020-2021 7,500 3,000 4,500 60.0%
2021-2022 7,500 3,000 4,500 60.0%
2022-2023 8,000 3,500 4,500 56.3%
2023-2024 8,000 3,500 4,500 56.3%
2024-2025 8,000 3,500 4,500 56.3%
2025-2026 8,000 3,500 4,500 56.3%
Source: Census Bureau 2010-2019; projections Xpera Group
Residential Construction
Projections thru FY 2025-2026
San Diego County
2010-2018 in Calendar Years
Projections in Fiscal Years
68
The last year since 2000 that the County permitted 10,000 units was 2006. The
peak year was 18,000 units in 2003. 5.5 The Price of Housing The price of existing housing continues to escalate in San Diego County, both for
detached and attached housing. At year-end 2019, the median price of a detached
home was $665,000 and an attached home $431,000. Since 2013, detached homes have risen in price by 6.0% annually and attached housing 7.0%; however, the rate of gain has slowed down in the past year.
5.6 We should note that the inventory of existing homes is shrinking and that may have
an upward effect on pricing.
Year Detached Attached
2013 479,690$ 294,000$
2014 495,000$ 326,000$
2015 532,000$ 352,000$
2016 556,000$ 365,000$
2017 610,000$ 405,000$
2018 640,000$ 420,000$
2019 665,000$ 431,350$
Change 2013-2019 185,310$ 137,350$
% Change 39%47%
Annual % Change 6%7%
Change 2018-2019 25,000$ 11,350$
% Change 3.9%2.7%
Source: San Diego Assoc. of Realtors
Median Home Prices
San Diego County
2013-2019
Existing Homes
69
5.7
Overall, the San Diego County housing market is stable, but slowing down from the
aggressive sales paces and pricing of the past few years. We anticipate that sales will be stable with prices moving up very slowly, as opposed to the past few years. The County economy continues to grow and, for that reason, we remain positive
about its future but do not anticipate the type of fervor that drove the for sale
inventory to near zero and often spirited bidding for homes. 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 obviously increase in the number of seniors; however, we can not that 85% of seniors die in their existing home.
2018 2019
Detached 29 33
Attached 24 31
Detached 3.0 2.4
Attached 2.4 2.4
Detached 5,273 3,278
Attached 2,298 1,771
Source: SDAR
Inventory of Existing Homes
2018-2019
Months Supply of Inventory
End of Year Inventory
San Diego County
Days on Market
70
One of the reasons for that is that the County has a virtual absentia of
condominiums for the senior market. Unlike cities like Tampa, Miami 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.
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.
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
71
Section 6: The Future of South County
Section 6 looks at the future of South County as an integral part of San Diego County. Section 6.1: 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.
6.1
72
In 2019, the District served 50,555 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.
6.2
Similarly, meter sales in 2018 and 2019 were the strongest in the past seven 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%
Source: OWD
Customers Served
Potable Water
Otay Water District
2013-2019
73
6.2 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 Recycles Total
2013 305 5 310
2014 195 3 198
2015 138 8 146
2016 116 4 120
2017 109 9 118
2018 574 14 588
2019 463 12 475
Source: OWD
Meter Sales by Type
Potable Water
Otay Water District
2013-2019
74
In the following exhibit below, 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.
6.3
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
75
As of January 2019, there were an estimated 85,535 residential units in Chula
Vista, an increase of 3,036 units since 2015. It is possible that the Department of Finance is undercounting.
6.4 The persons per household have remained stable at 3.18, according to the California Department of Finance, Demographics Section.
6.5
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
76
From 2016 to 2018, the permit count was over 1,000 units. 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.
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.
6.5
In both 2017 and 2018, Chula Vista’s residential output accounted for a major part of the new housing supply in the County. In 2019, however, the percentages slipped back considerably as a result of a reduction in permitting in Chula Vista.
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%
Source: City of Chula Vista & CIRB
Residential Building Permits
City of Chula Vista
2010-2019
77
6.6 6.3 Resale Home Prices – Otay Ranch
The resale housing market in the Otay Ranch remains buoyant. Detached homes decreased in the number of sales from 2017 through 2019, but that may be because of the large number of new detached homes that came to market in the past 24 months. In the 2017-2019 period, prices generally were stable.
In the attached sector (virtually all townhomes – i.e. few flats), sales were healthy in all three years and prices continued to increase.
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 10,441 4,056 6,385 1,073 563 510 10.3%13.9%8.0%
2018 9,834 3,489 7,009 1,882 644 1,238 19.1%18.5%17.7%
2019 8,000 3,000 5,000 839 282 557 10.5%9.4%11.1%
Source: Census.gov
Residential Permits
Chula Vista & San Diego County
2010-2019
SD County Chula Vista CV as % of County
78
6.7 6.4 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. 2019 was a very productive year for south San Diego County. Perhaps the three
most important highlights were the completion of the Sudberry shopping center in
Millenia, the Sunroad plans for its master-planned community and initial development in Otay Mesa and the rapid transit bus route from the Otay Ranch to downtown San Diego.
The following exhibit notes the numerous projects in the Otay Water District area
along the 905 corridor, both those recently completed and in the future. The most prominent development activities are highlighted in light yellow:
ZIP AREA 2017 2018 2019 2017 2018 2019
Change
2017-2018
Change
2018-2019
91913 West 409 390 401 565,000$ 609,450$ 639,113$ 44,450$ 29,663$
91914 North 179 179 169 725,000$ 799,000$ 787,500$ 74,000$ (11,500)$
91915 South 295 265 250 580,000$ 605,000$ 602,000$ 25,000$ (3,000)$
Total 883 834 820
91913 West 299 277 283 365,000$ 399,000$ 425,000$ 34,000$ 26,000$
91914 North 66 157 47 390,000$ 407,000$ 424,998$ 17,000$ 17,998$
91915 South 236 212 236 405,000$ 420,000$ 450,722$ 15,000$ 30,722$
Total 601 646 566
Source: SDAR
Sales
Detached
Attached
Median Price
Home Prices (Existing Units)
Otay Ranch
2017-2019
79
6.8
Major
Progress
since last
report
2017-2020 2021-2022
Projected
2023-2026
Projected Activity Category
X X
26-mile South Bay Rapid Transit Bus Route -
serving the Otay Ranch area - Now in Service Transportation
X X Shovel-Ready Dirt in ample supply Residences
X X
Sudberry Millenia Common shopping center
(130,500 SF) - Now Completed Retail
X X
Substantial improvements in the San Ysidro
crossing - Now Completed ($750 Million)Transportation
X X 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.; U/C 227,000 SF
industrial space
Residences &
Commercial
X X X Near completion of Eastern Urban Center (Millenia) development - 2,500 units Residences
X X X Completion of SR-11 Transportation
X X
Widening of I-805 - one additional lane in each
direction, under way 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
Apex Power Group building $400 million Pio Pico "peaker plant" on eastern edge of Chula Vista Employment
X X X
Build-out of additional housing on Otay Ranch (20,000+
units)Residences
X X X Build-out of housing on Otay Mesa (10,000+ units)Residences
X X
Major commercial development on eastern side of Tijuana Employment
X X Employment Growth along SR-125 and SR and 905 Employment
X
Brown Field commercial traffic expansion; cargo volume increase Transportation
X Development of St. Katherine University in Otay Ranch Education
X
Development of 40-acre Sheriff's Vehicle Operations
Course Employment
X X Major reconfguration of Otay Town Center Employment & Residential
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 Completion of 3 more interchanges on SR-125 Tollway Transportation
(1) not all projects are within the OWD service area
Planned Projects Effecting (1)
Otay Water DistrictSouth San Diego County
2021-2026
Time Span
80
Exhibits of the substantial activity near the border appear below:
Sunroad’s Proposed Residential/Commercial Development
6.9
81
Sudberry’s Millenia Commons (Now Completed)
6.10
South Bay Rapid Transit
6.11
82
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 spring of this year.
6.12 Otay Mesa Completion SR-11 The completion of the SR-11 Otay Mesa Crossing is scheduled for 2021-2022.
6.13
83
Proposed Otay Mesa Enhanced Infrastructure Financing District
The EIFD would allow for continuous long-term bonding to complete the
infrastructure in the community plan area.
6.14
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.
84
6.15
Section 7: Future Development – OWD Service Area
Section 7 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. 7.1 Current 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. At the current time, there are 19 single family detached projects actively selling and
20 multi-family projects, as well as several apartment developments. The total
project count is almost identical to that of last year.
The single-family projects range in average price from $648,124 to $685,387 or $261 to $276 per square foot.
The multi-family housing sells for $413,623 to $481,843 or $271 to $248 per square foot.
Of the 3,645 units that have been brought to market recently, 908 remain to be sold. The market was very vibrant in 2019 and many builders did not anticipate the pace of sales and, as a result, did not have sufficient inventory to close as many as they
Developer Project Locale Acres Units Unit/Acre (1)Status
Pardee Southwest Village
East of I-805 and south
of 905 and San Ysidro
High School.472 5,277 15.0 Preparing EIR
Colrich Central Village
South of 905, west of
Cactus Road 230 4,485 19.5 Nearing construction
(1) buildable areas
Proposed and Under Construction
New Development
Outside OWD Service Area
Otay Mesa/Chula Vista
85
would have been able. Notably, 19 of the 39 projects have five or fewer units left to sell. This exhibit contains only sale product.
7.1 7.2 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 broken ground on their industrial sector (but not their
residential sector). Most of that development in the 2020-2026 timeframe will take place in the Millenia community and in Villages 2, 3, 8, 9 and 10 of Otay Ranch.
Total
Projects Total
Units
Units
Sold
Units
Remaining Sq.Ft.
Low Price Low $/Sq.Ft.Sq.Ft.
High Price High $/Sq.Ft.
Detached 19 1,639 1,265 374 2,576 648,124$ 276$ 2,960 685,387$ 261$
Attached 20 2,006 1,472 534 1,450 413,623 271$ 1,944 481,843$ 248$ Total 39 3,645 2,737 908
Source: S. Aranoff & Associates
San Diego County
YE 2019
New Residential For Sale Projects
Otay Ranch/Otay Mesa
86
7.2
Although it is difficult to project home sales and apartment construction going out six or seven 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 11,000+ 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. Unlike the past few years, 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.
87
7.3
The following exhibits displays the projected single family and multi-family for sale and apartment development activity at Otay Ranch:
7.4
Type Developer 2020 2021 2022 2023 2024 2025 2026 Total
Single Family Detached Multiple 215 208 215 339 319 300 553 2,149
Single Family Attached Multiple 411 432 300 392 460 397 250 2,642
Apartments Multiple 482 1,440 1,590 950 850 750 750 6,812
Total 1,108 2,080 2,105 1,681 1,629 1,447 1,553 11,603
Source: BIA, land owners, builders & City of Chula Vista
2020-2026
Otay Ranch
Projected Development Activity
SFD, SFA & Apartments
Community Developer 2020 2021 2022 2023 2024 2025 2026 Total
Villages 2,3,8,9,10 HomeFed 120 150 150 150 150 150 150 1,020
Village 2 Baldwin 95 58 0 0 0 0 153 306
Millenia Meridian 0 0 0 0 0 0 0 -
Total 215 208 150 150 150 150 303 1,326
Village 4 Moeller 15 39 19 73
Village 13 Moeller 50 50 50 50 50 250
Village 14 Jackson Pendo (Adara)- 50 50 50 150 300 Planning Areas 16 &
19 Jackson Pendo (Adara)50 50 50 50 200
Villages 4,13,14,16,19 - - 65 189 169 150 250 823
Total 215 208 215 339 319 300 553 2,149
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
Single Family Detached - For Sale
Otay Ranch
2020-2026
88
7.5
7.6
Community Developer 2020 2021 2022 2023 2024 2025 2026 Total
Villages 2,3,8,9,10 HomeFed - 200 250 250 250 250 250 1,450
Village 2 Baldwin 52 32 84
Millenia Meridian 259 150 409
Total 311 382 250 250 250 250 250 1,943
Village 2 Cornerstone 100 50 50 50 42 292
Village 4 Moeller 35 168 147 350
Village 13 Moeller 57 57
Village 14 Jackson Pendo -
Planning Areas 16 & 19 Jackson Pendo -
Villages 4,13,14,16,19 100 50 50 142 210 147 - 699
Total 411 432 300 392 460 397 250 2,642
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
Multi-Family - For Sale
Otay Ranch
2020-2026
Community Developer 2020 2021 2022 2023 2024 2025 2026 Total
Villages 2,3,4,8,9,10 HomeFed 170 1,200 1,000 800 700 600 600 5,070
Village 2 Baldwin 312 - - - - - 312
Millenia Meridian - 240 440 - - - 680
Total 482 1,440 1,440 800 700 600 600 6,062
Otay Town Center Brookfield - - 150 150 150 150 150 750
Total 482 1,440 1,590 950 850 750 750 6,812
Source: BIA, land owners, builders & City of Chula Vista
Projected Development Activity
Apartments
Otay Ranch
2020-2026
89
The projections for the development of each of the communities can be found in the
Appendix of this report. There are three properties in the immediate vicinity of the OWD headquarters that will move forward with development in the near-term future: Sweetwater Vistas
(Douglas Wilson Co.); Sweetwater Village (KB) and Spring Valley Retail Center
(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.
A fourth project is in the initial planning stage: Sunbow/Olympic Parkway being planned by Macro-Z for 600 apartments. It is currently zoned for industrial.
7.7
We have also added 50 units annually for small developments which may take
place within the Otay Water District. In total, in the 2020-2026 time-frame, we project a total of more than 14,000 units or on the order of 2,000 units annually.
Project Status Developer Unit Type No. Units
Sweetwater Villas Proposed Douglas Wilson Townhomes 218
Spring Valley Retail Center Proposed Lennar SFD 93
Sweetwater Village
Under
Construction KB Homes SFD 122
Sunbow/Olympic Pkway. .Proposed Macro-Z
Townhomes
/Courtyards 600
Total 1,033
Proposed/Under Construction Residential Development
Sweetwater Springs & Sunbow Areas
as of January 2020
90
7.8
Rental Apartments This past year two major projects were substantially completed: the 253 unit Alexan II/Rivue and the Residences at Escaya with 283 units. In 2020-2022, there will be the addition of some 2,200 units including the 480-unit
Ryan Millenia. Brookfield, which acquired the Otay Town Center from General Growth Properties, has formatted a plan to add 1,700 apartment units surrounding the OTC. Those plans have not yet been formalized.
Community Developer 2020 2021 2022 2023 2024 2025 2026 Total
Otay Ranch Multiple 1,108 2,080 2,105 1,681 1,629 1,447 1,553 11,603
Sunroad East
Otay Mesa Sunroad 0 0 300 300 300 300 300 1,500
Sweetwater Projects Douglas Wilson, et al 50 50 22 150 143 50 68 433
Salt Creek TBD 0 0 0 100 150 50 0 300
Misc. Parcels Multiple 0 50 50 50 50 50 50 300
Total 1,158 2,180 2,477 2,281 2,272 1,897 1,971 14,136
Average 2,019
Source: BIA, land owners, builders & City of Chula Vista
Projected Residential Development
Otay Water District Service Area
2020-2026
91
7.9
7.3 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. Retail
Now 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.
Project Developer Units Completion
Millenia - Alexan I Trammell Crow 309 2018
Millenia - Alexan II - Rivue Trammell Crow 253 2019
Village 8 West - Residences at
Escaya HomeFed 283 2019
Millenia Ryan Ryan 480 2021-2022
Millenia Mod. Income Meridian 200 2021
Total - Millenia 680
Village 4 HomeFed 350 2020
Village 8, West Lot 2 (Affordable)
Meta Housing -
HomeFed 175 2020
Village 3 0-1,2,R-6, Flatrock HomeFed 700 2022
Total - HomeFed 1,225
V2 Baldwin 312 2020
PA12 Baldwin - 2022-2025
Total -Baldwin 312
Otay Town Center Brookfield 1,700 2022-2025
Total - 2020+3,917
Rental Apartments
In Planning, Under Construction and Completed
Otay Ranch
as of January 2020
92
The Baldwin Suwerte project is a multi-product project with approximately 12,000 square feet of retail space. It is nearing completion. A third center, The Shoppes at Escaya, with 20,272 square feet, was completed at
year-end 2019.
A fourth center, with 15,000 square feet, seeking approval for a site north of the Otay Center would be developed by Baldwin along with 300 apartments, 272 condominiums and a hotel.
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.
7.10
In future years, HomeFed has plans for a total of 130,000 square feet, including a 90,000 square foot center in 2024.
Center Developer Sq.Ft.Completion
Millenia Commons Sudberry 135,000 2019
Suwerte Baldwin 12,000 2019
The Shops at Escaya HomeFed 20,272 2019
n/a Baldwin 12,000 2020
Sunroad Otay Mesa Sunroad 78,000 2022
Millenia Meridian 28,000 2022
Total 285,272
Retail Space
In Planning, Under Construction and Completed
Otay Mesa
as of January 2020
93
7.11
Hotels
There are several hotels that have come on-line and have opened for business in the past year.
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 Marriott Homewood Suites is being planned for the corner of Showroom Place and Fenton Street.
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)
94
7.12 Hospital & Medical Facilities
In January of this year, Sharp Hospital’ Chula Vista Medical Center opened a new hospital tower, the first new hospital in the region in more than 40 years. The quarter billion dollar tower has 106 rooms in the 197,000 square foot structure.
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
Courtyard
Olympic Pkway & Town Center
Drive 153 2021
Marriott Homewood Suites -
Eastlake - Spectrum
Development Showroom Place & Fenton St.179 2021
Village 13 Resort Village Village 13 200 2025-2030
Hotels In Planning, Under Construction and Completed
Otay Ranch
as of January 2020
95
7.13
There are also plans for a Scripps-sponsored 120-bed Acute Care Psychiatric Hospital on Showroom Place in Eastlake. It is on property owned by IRE Development. There appears to be some neighborhood opposition. Emcompass Health is going to construct a 72,750 square foot Rehabilitation
Health Center at 517 Shinahara Lane at Main and Brandywine. Office Space
Office space is not a major factor in the Chula Vista/Otay Mesa commercial market,
totaling 2.9% of the San Diego office marketplace. The overall vacancy rate for office space in Chula Vista/Otay Mesa is 9.1%, slightly more than last year.
96
7.14
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 first project is 318,000 square feet of Class “A.” Apparently, the first building has commitments for more than 70% of its space and intends to break ground in Spring 2020. The project is by Chesnut Properties, a local firm that has substantial
success in other parts of the County.
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
Chula Vista/Otay Mesa has more than 25.0 million square feet of industrial space,
most of it “big boxes” utilized for storage/warehousing. The vacancy rate for industrial space in Otay Mesa is now 4.6%, one of the lowest rates for the area in
many years.
Area
Sq.Ft. - Total
Inventory Vacancy Rate
Sq.Ft. - Total
Inventory Vacancy Rate
Otay Mesa 187,078 2.3%187,078 4.6%
Chula Vista 2,905,034 8.1%2,840,906 9.4%
Total OM/CV 3,092,112 7.6%3,027,984 9.1%
San Diego County 103,001,492 10.6%103,698,315 10.5%
OM/CV as % of SD Co.3.0%2.9%
Source: Kidder Mathews
YE 2018 YE 2019
Office Space Market
Chula Vista/Otay Mesa and San Diego County
as of January 2020
97
7.15 This past year, there were 261,960 square feet of industrial space completed in Otay Mesa. In total, there are a half-million square feet of industrial space under construction.
7.16
Area
Sq.Ft. - Total
Inventory Vacancy Rate
Sq.Ft. - Total
Inventory Vacancy Rate
Otay Mesa 15,839,477 7.6%16,102,703 4.6%
Chula Vista 9,653,685 3.2%9,631,683 9.4%
Total OM/CV 25,493,162 5.9%25,734,386 6.4%
San Diego County 189,139,372 5.0%189,883,550 5.5%
OM/CV as % of SD Co.13.5%13.6%
Change 2019-202 OM/CV 744,178
Source: Kidder Mathews
YE 2019
Industrial Development
Chula Vista & Otay Mesa
as of January 2020
YE 2018
Area Sq.Ft. U/C
2019 Sq.Ft.
Completions
Otay Mesa 261,960 329,254
Chula Vista 163,000 0
Total OM/CV 496,482 261,960
San Diego County 17,477,217 3,249,639
OM/CV as % of SD Co.2.8%8.1%
Soource: Kidder Mathews
Industrial Space Under Construction
Chula Vista/Otay Mesa and San Diego County
as of Year End 2019
98
Planned and Active Industrial Development
Certainly the largest of the planned industrial developments is Amazon’s 65-acre 5-story 3.4 million square foot distribution center with 1,800 parking spaces.
The following exhibit notes the individual projects in planning, under construction
and in the pipeline in Otay Mesa:
7.17
The square footage of planned and under construction industrial-type space in the
OWD service area has expanded dramatically in the past year with
Sunroad/Majestic’s industrial development, the Salvation Army facility, Otay Crossing and, of course, the Amazon distribution center.
Property Developer Location
Land Area
(Acres)
Under
Construction TotalSq.Ft.
Est. Date of
Completion
Otay Logistics Center Black Creek Group Otay Mesa 243,000 2019
Building 17 Murphy Otay Mesa 79,050 2019
San Diego Bus. Park -2055 Sanyo Ave (1)Murphy Otay Mesa 352,378 2019
The Campus Complex - Bldg. 3 (SD Bus. Pk.)Murphy Otay Mesa 6.29 137,000 137,000 2020
Brown Field Tech Park 1-C Murphy Otay Mesa 108,247 2020
Brown Field Tech Park 1-A Murphy Otay Mesa 228,000 2020Vogt Industrial Park - 9505 Airway Road IRE/Vogt Otay Mesa 7.4 100,214 100,214 2020Pinnacle Industrial Supply Hamann Co.Otay Mesa 3.6 32,213 32,213 2020
Brown Field Tech Park 1-B (Salvation Army)(3)Murphy Otay Mesa 126,333 2021
Brown Field Tech Park - Unit 2 Murphy Otay Mesa
Otay River Business Park (Bway & Main)Sudberry Chula Vista 33.5 163,000 404,500 2020-2025
Majestic Sunroad Center Sunroad/Majestic Otay Mesa 227,000 765,000 2020-2025
Otay Crossings - 311 acres; 1st Phase: 111 acres (2)
Kearny Real Estate
Co./Pacific Coast Capital Partners Otay Mesa 311.0 2,900,000 2021-2026Eastlake Park Place (Otay Lakes Rd. & Fenton
St.)IRE/Vogt Eastlake 70,229 2021-2026
Total w/o Amazon 659,427 5,303,164
Amazon Distribution Center (Otay Mesa Rd. & Enrico Fermi Drive)Seefried Otay Mesa 65.0 3,400,000 2021
Total including Amazon 659,427 8,703,164
(1) renovation of existing facility
(2) now offering lots for salesq.ft. projection is based on first 11 acres
(3) will include 130-bed facility
Source: Murphy Development Co.; Rob Hixson CBRE & various other sources
Planned and Active Industrial Development
Chula Vista/Otay Mesa
as of January 2020
99
Miscellaneous Development
There are three major projects on the horizon within the OWD service area that
deserve mention: Sunroad East Otay Mesa Business Park, University Village and Brown Field. The Sunroad project was originally going to contain a major shopping center with a Target store, but has recently re-planned the site for a combination of 3,100 multi-
family units, 78,000 square feet of retail space and 765,000 square feet of industrial/tech park space. Sunroad is No.1 in the aerial below:
7.18
100
Most of the Salt Creek Golf Course, now closed for business, is being offered for
development with approximitely 80 of the 245 acres reserved for habitation and other non-commercial uses. An RFP is in effect. At University Village (Village 3 & 4), there is a proposed campus of St. Katherine
University, now based in San Marcos. The school currently has 1,000 students.
Reportedly, the City of Chula Vista is in final negotiations with St. Katherine representatives. The 10-acre campus is planning housing for 400 students. The land use plan also calls for a total of 1,597 residential units: 1,002 single-family
homes, 317 multi-family units and 278 mixed-use units as well as 29.3 acres of
industrial space. Brown Field is within the City of San Diego, but worth noting because of its potential for enhancing employment growth in South County. The most recent plans
call for development of a 14,000 square foot terminal building and 87 new hangars
with a total of 111,000 square feet. A local developer will construct the hangars and also has plans for a 150 and a 125-room hotel. On 208 acres of the site, the developer has plans for commercial and
industrial space.
7.19
Property Developer Location Type Acres
Est. Date of
Completion
Sunroad East Otay
Mesa Bus. Park Sunroad 125 & Otay Mesa Rd.
Mixed use, including 3,100 housing units, 78,000 square feet of retail space
and 765,000 square feet of
industrial/high tech space. 253 2025
Salt Creek Golf
Course n/a
Hunte Parkway, east
of SR0125
164 acres to be sold; 80 acres to
remain undeveloped; RFP prepared. No
decision yet. 245 2025
University Village n/a Innovation Center
First project: St. Katherine's University
in planning with 1,000 students 1,281 2023
Brown Field City of S.D.Otay Mesa Road Airport with com'l development 880 2038
Proposed Miscellaneous Development Activity
Chula Vista/Otay Mesa
as of January 2020
101
Section 8: Projections for OWD Development Activity 2021-2026
In this section, we discuss the projections for both residential and non-residential
development in fiscal years 2021-2026.
8.1: 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 two projects that could surface during our projection period: those two are Salt Creek (discussed
earlier in the report) and the Sunroad East Otay Mesa project.
It is important to note that in this year’s projections, HomeFed’s 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 8.3, 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 2010-2018 period.
In the exhibits below, we have prepared projections in the initial weeks of the COVID-19. The exhibits show a modest decline in residential development, somewhat less bullish from those projections we prepared two months ago:
102
8.1 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.
8.2 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 2020 with its first phase.
We have allocated a modest amount of office space in earlier years to reflect the possibility of smaller office space within the new villages, some of which may be health related. HomeFed has planned 90,000 square feet of retail space for 2024-2025.
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
To
t
a
l
Av
e
r
a
g
e
For Sale
REVISED SFD 175 125 337 539 562 450 2,188 365
REVISED SFA 250 225 450 642 760 697 3,024 504
Total For Sale 425 350 787 1,181 1,322 1,147 5,212 869
REVISED apts 482 500 1,000 1,200 1,000 1,000 5,182 864
- Total 907 850 1,787 2,381 2,322 2,147 10,394 1,732
% For Sale 47%41%44%50%57%53%50%50%
% For Rent 53%59%56%50%43%47%50%50%
Residential Development Projections
Otay Water District Service Area
Fiscal Years 2020-2026
Revised 3.2020
103
We have assumed that University Village will move forward in this timeframe, if St.
Katherine’s University moves forward with its plan. The probability of a number of smaller hotels is somewhat certain and most likely,
the CBX may initiate hotel development in the near-term future. We are fairly certain
that there will be two new hotels developed in Otay Ranch in the next two years. 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.
Retail will be developed in the villages as they mature, but it will be neighborhood shopping, with the exception of the Sudberry 135,000 square feet of space that is underway in Millenia.
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.
There are now three aggressive players in the industrial space market in Otay
Mesa: Otay Crossings, Sunroad/Majestic and Murphy. And then, there is Amazon.
104
8.4
<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>
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
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
Total
Hotels (2)Rooms 153 179 250 100 682
Industrial (1)Sq.Ft.700,000 500,000 400,000 400,000 400,000 400,000 2,800,000
Amazon 3,400,000 3,400,000
Retail Sq.Ft.15,000 20,000 20,000 20,000 90,000 15,000 180,000
Office Sq.Ft.10,000 10,000 150,000 150,000 10,000 150,000 480,000
(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.
(3) Assumes 1st Chesnut project is completed in 2022-2023
Non-Residential Development Projectons
Otay Water District Service Area
Fiscal Years 2020-2026
105
Detail Exhibits
Projected Development Activity Otay Ranch 2020-2026
Map of Otay Ranch
106
Community Developer 2020 2021 2022 2023 2024 2025 Total
Millenia Lennar - Vibe 46 46 92
Millenia Lennar - Cleo 40 40 37 117
Millenia Pinnacle 40 40 46 126
Millenia Ryan 240 240 117
Millenia
Mod. Income
Apts 200 126
Total 126 366 523 578
Source: Meridian Development
Projected Development Activity
Multi-Family For Sale & Apartments
Otay Ranch
2020-2026
Millenia
Developer Type Area 2020 2021 2022 2023 2024 2025 Total
Baldwin Attached V2 63 26 89
Baldwin Detached V2 95 58 153
158 84 - - - - 242
Source: Baldwin & Sons
Projected Development Activity
Single Family & Multi-Family For Sale
Baldwin - Village 2
Otay Ranch
2020-2026
107
Area 2020 2021 2022 2023 2024 2025 2026 Total
SFD - For Sale
Village 2 West -
Village 3 (Escaya)120 120
Village 3 - Flatrock
Village 4
Village 8 (W/E) (1) 150 150 150 150 150 150 900
Village 9 -
Village 10 -
Total 120 150 150 150 150 150 150 1,020
MFA - For Sale
Village 2 West -
Village 3 (Escaya)-
Village 3 -Flatrock
Village 4
Village 8 (W/E) (1) 200 250 250 250 250 250 1,450
Village 9 -
Village 10 -
Total 0 200 250 250 250 250 250 1,450
Total - For Sale
Village 2 West 0 0 0 0 0 0 0 0
Village 3 (Escaya)120 0 0 0 0 0 0 120
Village 3 -Flatrock 0 0 0 0 0 0 0 0
Village 4 0 0 0 0 0 0 0 0
Village 8 (W/E) (1) 0 350 400 400 400 400 400 2350
Village 9 0 0 0 0 0 0 0 0
Village 10 0 0 0 0 0 0 0 0
Total 120 350 400 400 400 400 400 2,470
Apartments
Village 2 West -
Village 3 (Escaya)170 350 200 720
Village 3 - Flatrock 200 200 200 100 700
Village 4 350 350
Village 8 (W/E)300 300 300 300 300 300 1,500
Village 9 300 300 300 300 300 1,200
Village 10 -
Total 170 1,200 1,000 800 700 600 600 4,470
Total
Village 2 West 0 0 0 0 0 0 0 0
Village 3 (Escaya)290 350 200 0 0 0 0 840
Village 3 -Flatrock 0 200 200 200 100 0 0 700
Village 4 0 350 0 0 0 0 0 350
Village 8 (W/E)0 650 700 700 700 700 700 3850
Village 9 0 0 300 300 300 300 300 1200
Village 10 0 0 0 0 0 0 0 0
Total 290 1,550 1,400 1,200 1,100 1,000 1,000 6,940
% Apartments 59%77%71%67%64%60%60%64%
(1) may include a 350-lot active senior community
Source: HomeFed
Projected Development ActivitySingle Family & Multi-Family For Sale & ApartmentsHome Fed
Otay Ranch
2020-2026
108
Housing
Type 2020 2021 2022 2023 2024 2025 2026 Total
Single Family
Detached 50 50 50 50 50 250
Attached for
Sale 100 100 100 100 100 500
Rental 150 150 150 150 150 750
Total - - 300 300 300 300 300 1,500
Source: Sunroad (Total Project: 3,155 units)
Projected Development Activity
For Sale & Apartments
Sunroad
Otay Mesa
2020-2026
109
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construction forensics firm in 2009, we have expanded our offerings over the years to deliver specialized expertise to clients at all phases of the development process.
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One of Xpera Group’s principal services is providing economic research, a category that includes market research studies, development strategies, forensic economics, fiscal and economic impact studies and valuations.
110
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 1, 2020
SUBMITTED BY:Dan Martin
Assistant Chief of Engineering
PROJECT: P2561-001103 DIV. NO.2
APPROVED BY: Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT:Approval to Increase the CIP P2561 Budget in an Amount of
$150,000 and approval of Change Order No. 1 in an amount not-
to-exceed $105,535.48 to the Construction Contract with
Layfield USA Corporation for the Reservoir 711-3 Floating
Cover and Liner Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board):
1.Increase the budget for CIP P2561 by $150,000 (increase the CIP
budget for P2561 from $2,300,000 to $2,450,000); and
2.Approve Change Order No. 1 to the existing construction
contract with Layfield USA Corporation (Layfield) in an amount
not-to-exceed $105,535.48 for the Reservoir 711-3 Floating
Cover and Liner Replacement Project (see Exhibit A for Project
location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization to increase the CIP P2561 budget in the
amount of $150,000 from $2,300,000 to $2,450,000 and to obtain Board
authorization for the General Manager to execute Change Order No. 1
in an amount not-to-exceed $105,535.48 to the construction contract
with Layfield for the Reservoir 711-3 Floating Cover and Liner
Replacement Project (Project).
AGENDA ITEM 7a
2
ANALYSIS:
The 16 million gallon 711-3 Reservoir was originally constructed with
its existing reinforced polypropylene (RPP) floating cover and liner
in 2002. In the last few years, the floating cover has been
repeatedly repaired to maintain the integrity of the cover material.
Dive videos taken showed leaks and sunlight penetrating the floating
cover in many places. It was no longer cost effective to continue to
repair the existing cover that has reached the end of its life
expectancy.
The Project scope of work generally consists of the removal and
replacement of the existing reservoir liner and floating cover with a
new reinforced chlorosulfonated polyethylene (CSPE) liner and
floating cover. The CSPE geomembrane will have a 30 year warranty.
The warranty will not be prorated for the first 15 years, and then
prorated for years 16 through 30. The floating cover work is very
specialized and requires that the installation be performed by
contractors that are certified to install the CSPE material, which is
supplied by Burke Environmental Products.
At the July 11, 2018 Board meeting, the Board awarded a construction
contract in the amount of $1,997,000.40 to Layfield. A Notice to
Proceed was issued on August 1, 2018.
Change Order No. 1 (Exhibit B), which is the subject of this staff
report, serves to close out the construction contract and includes
the following items associated with the 711-3 Reservoir cover and
liner installation project:
•Addition of five (5) calendar days for use of Bid Item 8 –
Reservoir Improvement Allowance associated with cathodic repair
work.
•Addition of two (2) calendar days for use of Bid Item 8 –
Reservoir Improvement Allowance associated with the construction
of additional anchor bolts.
•Reconciliation of unused portion of Bid Item 8 – Reservoir
Improvement Allowance.
•Owner directed slope repair acceleration costs and additional
time (151 calendar days) associated with work resequencing and
production impacts as part of post weather cumulative impacts.
•Costs and time (81 calendar days) associated with contractor
efforts to identify and temporarily repair a water leak in an
existing concrete structure.
•Reimbursement of lost water at the 711-3 Reservoir resulting
from failed bacteriological and VOC testing.
3
•Reimbursement for liquidated damages from November 12, 2019
until Substantial Completion on November 27, 2019.
•Addition of eighteen (18) calendar days due to weather impacts
per Contract Specifications.
In total, the cost associated with the items in Change Order No. 1 is
$105,535.48. Time impacts associated with this change are also
provided in Exhibit B. The two hundred and fifty-seven (257)
additional days added to the contract will result in a revised total
contract duration of 469 calendar days.
As of November 27, 2019, the Project was substantially complete and
the 711-3 Reservoir has been returned to service.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2651, as approved in the FY 2020 budget, is
$2,300,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $2,448,670. See Attachment B
for budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that with a budget increase of $150,000, the Project will
be completed within the new budget amount of $2,450,000.
The Finance Department has determined that, under the current rate
model, 100% of the funding will be available from the Replacement
Fund.
GRANTS/LOANS:
Engineering staff researched and explored grants and loans and found
none available for this Project.
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 responsive
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."
4
LEGAL IMPACT:
None.
DM/RP:jf
P:\WORKING\CIP P2561 711-3 Reservoir Cover-Liner Replacement\Staff Reports\BD 04-01-20 Layfield\BD 04-
01-20 Staff Report 711-3 Res CO No 1.docx
Attachments: Attachment A – Committee Action
Attachment B – Budget Detail
Exhibit A – Location Map
Exhibit B – Change Order No. 1
ATTACHMENT A
SUBJECT/PROJECT:
P2561-001103
Approval to Increase the CIP P2561 Budget in an Amount of
$150,000 and Approval of Change Order No. 1 in an amount
not-to-exceed $105,535.48 to the Construction Contract with
Layfield USA Corporation for the Reservoir 711-3 Floating
Cover and Liner Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on March 17, 2020
and the following comments were made:
•Staff recommended that the Board increase the budget for CIP
P2561 by $150,000 (from $2,300,000 to $2,450,000) and Approve
Change Order No. 1 to the existing construction contract with
Layfield USA Corporation (Layfield) in an amount not-to-exceed
$105,535.48 for the Reservoir 711-3 Floating Cover and Liner
Replacement Project.
•In response to a question from the Committee, staff stated that
they are comfortable with continuing to utilize floating covers
and liners for the District’s reservoirs as they are reliable,
cost efficient, and the correct application. It was noted that
the District has incorporated CSPE material for both the liner
and the cover which has a 30 year warranty.
•The Committee asked staff to provide additional details of
Change Order No. 1, Item No. 4. Staff stated that in
December 2018, heavy winter storms caused significant erosion to
the reservoir slope. As stated in Exhibit B under “Reason” for
Item No. 4, the contractor asserted cumulative weather impact
costs and time associated with weather conditions during the
course of construction. It was necessary to implement the
modification and resolve all costs and time associated with
Owner directed acceleration and cumulative weather time impacts
for contractor implemented work resequencing and production
impacts.
•It was noted that Change Order No. 1, Item No. 7 requires the
Contractor to reimburse the District for costs associated with
not completing the project within the allotted time. The
adjusted contract completion date was November 12, 2019 and
substantial completion was achieved on November 27, 2019
resulting in 15 days of liquidated damages.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board on the
consent calendar.
ATTACHMENT B – Budget Detail
SUBJECT/PROJECT:
P2561-001103
Approval to Increase the CIP P2561 Budget in an Amount of
$150,000 and Approval of Change Order No. 1 in an amount
not-to-exceed $105,535.48 to the Construction Contract with
Layfield USA Corporation for the Reservoir 711-3 Floating
Cover and Liner Replacement Project
3/9/2020
Budget
2,300,000
Planning & Design
Consultant Contracts 5,867 5,867 -5,867 LAYFIELD USA CORPORATION
3,308 3,308 -3,308 NV5 INC
Regulatory Agency Fees 50 50 -50 PETTY CASH CUSTODIAN
Standard Salaries 45,695 45,695 -45,695
Total Planning 54,920 54,920 -54,920
Construction
3,469 3,469 -3,469 CLARKSON LAB & SUPPLY
1,997,000 1,822,250 174,750 1,997,000 LAYFIELD USA CORPORATION
105,536 - 105,536 105,536 Change Order No. 1
55,680 55,680 -55,680 ALYSON CONSULTING
1,040 1,040 -1,040 RFYEAGER ENGINEERING LLC
318 318 -318 CORE & MAIN LP 595
81 81 -81 DAILY JOURNAL CORPORATION
628 628 -628 MAYER REPROGRAPHICS
220,000 215,793 4,207 220,000 Standard Salaries
-
10,000 - 10,000 10,000 Contingency (0.5% of Const Contract)
Total Construction 2,393,752 2,099,259 294,493 2,393,752
Grand Total 2,448,672 2,154,179 294,493 2,448,672
Vendor/Comments
Otay Water District
p2561-Res - 711-3 Reservoir Cover/Liner Replac
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT711-3 RESERVOIR COVER REPLACEMENTLOCATION MAP
EXHIBIT A
CIP P2561F
P:\WORKING\CIP P2561 711-3 Reservoir Cover-Liner Replacement\Graphics\Exhibits-Figures\Exhibit A (ALTERNATE) - Staff Report.mxd
!\
VICINITY MAP
PROJECT SITE
NTSDIV 5
DIV 1
DIV 2
DIV 4
DIV 3
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ÃÅ94
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F
0 490245
Feet
711-3 RESERVOIRPROJECT SITE
H
U
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PROCTOR VALLEY RD
O
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D
TRAIL
RD
D U N C A N RANCH
R
D
OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222 CONTRACT/P.O. CHANGE ORDER No. 1
PROJECT/ITEM: 711-3 Reservoir Improvement
CONTRACTOR/VENDOR: Layfield USA Corporation REF.CIP No.: P2561
APPROVED BY: Board REF. P.O. No: 720547 DATE: 3/9/19
DESCRIPTION: See attached page 2 of 3 for continuation.
REASON:
See attached page 3 of 3 for continuation.
CHANGE P.O. TO READ:
Revise Contract to add $105,535.48 and add 257 days time for a total Contract amount of $2,102,535.88 with a Contract Duration of 469 Calendar Days.
ORIGINAL CONTRACT/P.O. AMOUNT: $ 1,997,000.40 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ 0.00 TOTAL COST OF THIS CHANGE ORDER: $ 105,535.48
NEW CONTRACT/P.O. AMOUNT IS: $ 2,102,535.88 ORIGINAL CONTRACT COMPLETION DATE: 2,28/19 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: Yes REVISED CONTRACT COMPLETION DATE: 11/12/19 IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT. CONTRACTOR/VENDOR: STAFF APPROVALS:
SIGNATURE: PROJ. MGR : DATE:
NAME : Jon Feenstra DIV. MGR : DATE:
TITLE: Project Manager DATE : CHIEF: DATE:
COMPANY & Layfield USA Corporation ADDRESS: 10038 Marathon Parkway DISTRICT APPROVAL:
Lakeside, CA 92040 GEN. MANAGER: DATE:
COPIES: FILE (Orig.), CONTRACTOR/VENDOR, CHIEF-ENGINEERING, CHIEF-FINANCE, ENGR. MGR. ACCTS PAYABLE, INSPECTION, PROJ. MGR., ENGR. SECRETARY, PURCHASING, PROJECT BINDER
Contract / P.O. Change Order No. 1 page 2 of 3 Description of Work
Description
Increase Decrease Time
Item No. 1: This Change Order provides for time related to the use of Bid Item 8 – Reservoir Improvement Allowance associated with the Cathodic Repairs per BI 8 – Work Order 02.
$0.00 $0.00 5
Item No. 2: This Change Order provides for time related to the use of Bid Item 8 – Reservoir Improvement Allowance associated with the Additional Anchor bolts per BI 8 – Work Order 03.
$0.00 $0.00 2
Item No. 3: This Change Order decreases the amount allocated for Bid Item 8, Reservoir Improvement Allowance by $9,679.72 to a new authorized amount of $40,320.28.
$9,679.72 0
Item No. 4: This Change Order provides for Owner directed slope repair acceleration costs and additional Contract time associated with work resequencing and production impacts as part of post weather workdays cumulative impact.
$27,300.00 151
Item No. 5: This Change Order provides for costs and time associated with contractor efforts to identify and temporarily repair a water leak in an existing concrete structure.
$144,429.20 81
Item No. 6: This Change Order provides for reimbursement of lost water at the 711-3 Reservoir resulting from failed bacteriological and VOC testing. $41,514.00 0
Item No. 7: Reimbursement for liquidated damages from November 12, 2019 until Substantial Completion on November 27, 2019 (15 calendar days at
$1,000/calendar day)
$15,000.00 0
Item No. 8: Add 18 calendar days due to weather impacts per Contract Specifications 00700-8.5 $0.00 $0.00 18
Sub Total Amount $171,729.20 $66,193.72 257
Total Net Change Order Amount $105,535.48
Revisions to: BID SCHEDULE Item # Description Quantity Unit Unit Price Amount
8 Reservoir Improvement Allowance 1 LS LS $40,320.28.00
Reason: Item No. 1: The Contract Bid Item No. 8, Reservoir Improvement Modification Allowance, was utilized to account for additional cathodic repairs. Costs were accounted via the Contractual Allowance; however, it was agreed that the added scope resulted in a 5 (five) calendar day extension to the Contract. This change is necessary to provide the time extension agreed upon to resolve all costs associated with this issue.
Contract / P.O. Change Order No. 1 page 3 of 3 Item No. 2: The Contract Bid Item No. 8, Reservoir Improvement Modification Allowance, was utilized to account for additional tension tower anchor bolts. Costs were accounted via the Contractual Allowance; however, it was agreed that the added scope resulted in a 2 (two) calendar day extension to the Contract. This change is necessary to provide the time extension agreed upon to resolve all costs associated with this issue. Item No. 3: The Contract Bid Item No. 8, Reservoir Improvement Allowance, was used to the maximum extent practical and is no longer required. Item No. 4: In late December 2018 the District directed weekend work to implement reservoir slope repairs prior to an impending storm. The Contractor also asserted cumulative weather impact costs and time associated with weather conditions during the course of construction. This change order is necessary to implement the modification and resolve all costs and time associated with Owner directed acceleration and cumulative weather time impacts for contractor implemented work resequencing and production impacts. Item No. 5: Subsequent to filling the reservoir for water quality testing a leak was revealed by water emanating from the reservoir underdrain system. As this water flow was not present prior to commencement of construction activities the Contractor was directed to locate and repair the source of the leak. The Contractor performed manned diver entry, visual inspection after draining the reservoir, pressurized smoke testing of the underdrain system ultimately locating the leak with a second diver entry. The source of the leak was determined to be a system of cracks in an existing concrete structure at the floor of the reservoir which was an existing reservoir element to be reused as part of the Contractor’s scope. This change order is necessary to implement the modification and resolve all cost and time impacts with this issue. Item No. 6: Resulting from failed bacteriological and VOC testing on the 711-3 Reservoir, draining of the reservoir was required. This change order is necessary to allow the District to recover the additional expenditures incurred for lost water pursuant to contractual provisions. Item No. 7: Pursuant to contractual provisions, failure of the Contractor to complete the work within the time allowed will result in damages being sustained by the District for each calendar day the Contractor fails to substantially complete all work. The adjusted Contract completion date was November 12, 2019 and substantial completion was achieved on November 27, 2019 resulting in 15 days of liquidated damages. This change order is required to reimburse the District for costs associated with the Contractor not completing the project within the allotted time. Item No. 8: Contract Documents Section 00700-8.5 provides for no cost time extensions due to weather impacts on the project progress. Weather impacted the project eight (18) days between December 1, 2018 and May 31, 2019. The project was impacted on December 6, 7 and 31, 2018, January 5, 6, 14, 15, 16, 17, 18, and 31, February 2, 4, 5 and 14, May 1, 9 and 10, 2019 due to weather.
711-3 Reservoir Improvement Project: P2561
Consultant/Contractor: Layfield USA Corporation Subproject: 001103
APPROVED
C.O. AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 $105,535.48 Board
Change order No. 1 addresses eight items including time
associated with Cathodic Repairs; time associated with
additional anchor bolts; reconsiliation of allowance Bid Item
No 8; owner directed slope repair acceleration; leak location
and temporary repair of existing concrete structure; credit for
lost water; reimbursement of liquidated damages and
weather days.
Contractor
2
3
4
5
6
7
8
9
10
11
12
13
1415
Total C.O.'s To Date: $105,535.48 5.3%
Original Contract Amount:$1,997,000.40
Current Contract Amount:$2,102,535.88
Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. %
3/20 $105,535.48 $3,000 Insp $105,535.48 5.3%
$7,000 PM/Supervisor 0.0%
$15,000 DivM 0.0%
$20,000 Asst Chief
$30,000 Chief 0.0%00%$75,000 GM 0.0%
>$75,000 Board 0.0%
CHANGE ORDER LOG
P:\WORKING\CIP P2561 711-3 Reservoir Cover-Liner Replacement\Construction\Change
Orders\200309_COLOG 1 3/10/2020
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:April 1, 2020
SUBMITTED BY:Dan Martin
Assistant Chief of Engineering
PROJECT: P2574-001103
P2625-001103
DIV. NO.5
APPROVED BY: Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT:Approval of Change Order No. 4 in an amount not-to-exceed
$1,880.00 to the Construction Contract with Cass Arrieta for
the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP P2625)
Water Line Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve Change Order No. 4 to the existing construction contract with
Cass Construction, Inc. dba Cass Arrieta (Cass Arrieta) in an amount
not-to-exceed $1,880.00 for the Vista Vereda and Hidden Mesa Road
Water Line Replacement Project (see Exhibit A for Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Change Order No. 4 in an amount not-to-exceed $1,880.00 to the
construction contract with Cass Arrietta for the Vista Vereda and
Hidden Mesa Road Water Line Replacement Project (Project).
AGENDA ITEM 7b
2
ANALYSIS:
The District provides water distribution service and sanitary sewer
collection service in the Jamacha drainage basin located in the
northern area of the District. The existing 12-inch Cement Mortar
Lined and Coated (CML&C) Steel pipe that serves as the distribution
main for the western portion of the 978 Pressure Zone along Vista
Vereda to Hidden Mesa Road was constructed in 1959. Several water
main breaks have occurred in the area that have led to a
determination that the pipeline has reached the end of its useful
life and should be replaced. The original pipeline was constructed
in easements prior to any development in the area. Over the years,
with the subdivision of properties and construction of homes, the
difficult to access easements are no longer a desirable location for
placing an important transmission water main. This Project moves the
transmission main for this area into Hidden Mesa Road.
The Project scope of work generally consists of construction along
Vista Vereda and Hidden Mesa Road of approximately 3,700 linear feet
of 12-inch Polyvinyl Chloride (PVC) water line and 400 linear feet of
8-inch PVC water line, including appurtenances, restoration of
services, surface restoration, traffic control, and all testing and
inspection, as required by the Contract Documents.
At the November 7, 2018 Board Meeting, the Board awarded a
construction contract in the amount of $2,848,364.00 to Cass Arrieta.
Since the award of the construction contract, there have been three
(3)Change Orders approved.
Change Order No. 1, which totaled $45,750.67, compensated the
contractor for several items associated with the Hidden Mesa water
line construction including: additional cut and cap of the existing
mainline to minimize future customer impacts; realignment of the
planned main to resolve utility conflicts; additional asphalt paving,
as required by the County permit; and reconciliation of unused
allowance items. Contract time was also adjusted for weather impacts
and for impacts due to the added work. In total, Change Order No. 1
added twenty-nine (29) calendar days to the contract.
Change Order No. 2, which totaled $115,213.59, compensated the
contractor for several items associated with the Vista Vereda water
line construction including: revisions to the alignment, profile, and
sequence of connection for the planned water main tie-in at the Vista
Vereda/Vista Grande intersection; encasement of the existing sewer to
meet the State Water Resource Control Board – Division of Drinking
Water separation requirements; mainline grade revisions to the
profile of the planned water main within Vista Vereda due to existing
3
utilities; and credit adjustments for unused bid allowance items.
Contract time was also adjusted for impacts resulting from the added
work. In total, Change Order No. 2 added ninety-three (93) calendar
days to the contract.
Change Order No. 3, which totaled $1,998.18, compensated the
contractor for a modification of the planned profile for the 12-inch
connection to the 978 Reservoir pipeline on Vista Vereda and quantity
adjustments to sixteen (16) contract bid items resulting from field
conditions. Contract time was also adjusted for impacts resulting
from the added work. In total, Change Order No. 3 added eighteen
(18) calendar days to the contract.
Change Order No. 4 (Exhibit B), which is the subject of this staff
report, serves to close out the construction contract and includes
the following items associated with the water line work on Vista
Vereda and Hidden Mesa:
•Additional erosion control measures to improve the existing
draining conditions which were impacted by the project.
•Reimbursement for District personnel and equipment costs
incurred during the cellular concrete spill cleanup.
•Reconciliation of Bid Item No. 32 Reinstall Chain Link Fence due
to field conditions.
In total, the cost associated with the items in Change Order No. 4 is
$1,880.00. There were no time impacts associated with this change as
provided in Exhibit B.
As of November 25, 2019, the Project was substantially complete with
punch list items remaining. These punch list items include final
restoration associated with a cellular concrete spill that occurred
in early November 2019. The District has required the contractor to
secure releases from affected property owners as a condition of
contract acceptance.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2574, as approved in the FY 2020 budget, is
$1,785,000. Total expenditures, plus outstanding commitments and
forecast including this contract, are $1,783,834. See Attachment B1
for budget detail. Based on a review of the financial budget, the
Project Manager anticipates that CIP P2574 will be completed within
the budget amount of $1,785,000.
The total budget for CIP P2625, as approved in the FY 2020 budget, is
$2,210,000. Total expenditures, plus outstanding commitments and
4
forecast including this contract, are $2,209,523. See Attachment B2
for budget detail. Based on a review of the financial budget, the
Project Manager anticipates that CIP P2625 will be completed within
the budget amount of $2,210,000.
The Finance Department has determined that 100% of the funding for
CIP P2574 and CIP P2625 will be available in the Replacement Reserve.
GRANTS/LOANS:
Engineering staff researched and explored grants and loans and found
none available for this Project.
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 responsive
manner” and the District’s Vision, “To be a model water agency by
providing stellar service, achieving measurable results, and
continuously improving operational practices.”
LEGAL IMPACT:
None.
DM/RP:jf
P:\WORKING\CIP P2574 12-Inch PL Replacement, 978 Zone, Vista Vereda\Staff Reports\Board 04-01-20\BD 04-
01-20 Staff Report Vista Vereda-Hidden Mesa CO 4.docx
Attachments: Attachment A – Committee Action
Attachment B1 – P2574 Budget Detail
Attachment B2 – P2625 Budget Detail
Exhibit A – Location Map
Exhibit B – Change Order No. 4
ATTACHMENT A
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval of Change Order No. 4 in an amount not-to-exceed
$1,880.00 to the Construction Contract with Cass Arrieta
for the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP
P2625) Water Line Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on March 17, 2020
and the following comments were made:
•Staff recommended that the Board approve Change Order No. 4 to
the existing construction contract with Cass Construction, Inc.
dba Cass Arrieta (Cass Arrieta) in an amount not-to-exceed
$1,880.00 for the Vista Vereda and Hidden Mesa Road Water Line
Replacement Project.
•Staff provided a background of the Project and indicated that
Change Order No. 4 serves to close out the construction contract
and includes three items. See Exhibit B of the staff report for
details.
•In response to a question from the Committee, staff stated that
they are very pleased with Cass Arrieta’s project performance;
particularly when Cass Arrieta took responsibility to help
facilitate the resolution of the cellular concrete spill caused
by their subcontractor.
•It was noted that there is no fiscal impact for this project.
•The Committee commended staff for providing a Work Order Cost
Detail Report that shows District crew members’ total hours and
costs associated with the cleanup efforts for the cellular
concrete spill.
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board on the
consent calendar.
ATTACHMENT B1 – P2574 Budget Detail
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval of Change Order No. 4 in an amount not-to-exceed
$1,880.00 to the Construction Contract with Cass Arrieta
for the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP
P2625) Water Line Replacement Project
9-Mar-20
Budget
1,785,000
Planning
Consultant Contracts 1,224 1,224 -1,224 HELIX ENVIRONMNTL PLANNING INC
1,121 1,121 -1,121 ICF JONES & STOKES INC
1,900 1,900 -1,900 WATER SYSTEMS CONSULTING INC
Regulatory Agency Fees 2,331 2,331 -2,331 COUNTY OF SAN DIEGO
50 50 -50 PETTY CASH CUSTODIAN
Service Contracts 154 154 -154 STAR-NEWS PUBLISHING CO
Standard Salaries 81,111 81,111 -81,111
Total Planning 87,891 87,891 -87,891
Design 001102
Consultant Contracts 147,150 147,150 -147,150 RICK ENGINEERING COMPANY
3,487 3,487 -3,487 NINYO & MOORE GEOTECHNICAL
28,582 28,582 -28,582 NINYO & MOORE GEOTECHNICAL AND
2,612 2,612 -2,612 HUNSAKER & ASSOCIATES
12,559 12,559 -12,559 C BELOW INC
- - --
Service Contracts 40 40 -40 DAILY JOURNAL CORPORATION
1,000 1,000 -1,000 CHICAGO TITLE COMPANY
Standard Salaries 137,409 137,409 -137,409
Total Design 332,839 332,839 -332,839
Construction
Construction Contracts 1,320 1,320 -1,320 CLARKSON LAB & SUPPLY INC
1,171,884 1,114,719 57,165 1,171,884 CASS CONSTRUCTION INC
1,140 - 1,140 1,140 CHANGE ORDER NO 4
Consultant Contracts 6,860 6,860 -6,860 RICK ENGINEERING COMPANY
12,000 8,715 3,285 12,000 ALYSON CONSULTING
Regulatory Agency Fees - - -- COUNTY OF SAN DIEGO
Service Contracts 900 900 -900 MAYER REPROGRAPHICS INC
Standard Salaries 159,000 151,607 7,393 159,000
10,000 - 10,000 10,000 Contingency (0.9%)
Total Construction 1,363,104 1,284,121 78,983 1,363,104
Grand Total 1,783,834 1,704,851 78,983 1,783,834
Vendor/Comments
Otay Water District
P2574 - PL 12" 978 Zone, Vista Vereda
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B2 – P2625 Budget Detail
SUBJECT/PROJECT:
P2574-001103
P2625-001103
Approval of Change Order No. 4 in an amount not-to-exceed
$1,880.00 to the Construction Contract with Cass Arrieta
for the Vista Vereda (CIP P2574) and Hidden Mesa Road (CIP
P2625) Water Line Replacement Project
9-Mar-20
Budget
2,210,000
Planning
Standard Salaries 815 815 -815
Total Planning 815 815 -815
Design 001102
Consultant Contracts 12,559 12,559 -12,559 C BELOW INC
- - -
2,612 2,612 -2,612 HUNSAKER & ASSOCIATES
118,540 118,540 -118,540 RICK ENGINEERING COMPANY
Service Contracts 40 40 -40 DAILY JOURNAL CORPORATION
Standard Salaries 77,043 77,043 -77,043
Total Design 210,795 210,795 -210,795
Construction
Construction Contracts 1,839,443 1,839,443 -1,839,443 CASS CONSTRUCTION INC
740 - 740 740 CHANGE ORDER NO 4
4,416 4,416 -4,416 CLARKSON LAB & SUPPLY INC
Consultant Contracts 3,679 3,679 -3,679 RICK ENGINEERING COMPANY
68,415 68,415 -68,415 ALYSON CONSULTING
For Ops Only - Contracted Services 2,000 2,000 -2,000 RICK POST WELD & WET TAPPING
Regulatory Agency Fees 13,321 13,321 -13,321 COUNTY OF SAN DIEGO
Service Contracts 900 900 -900 MAYER REPROGRAPHICS INC
Standard Salaries 50,000 47,037 2,963 50,000
15,000 - 15,000 15,000 Contingency (0.8%)
Total Construction 1,997,914 1,979,211 18,703 1,997,914
Grand Total 2,209,523 2,190,820 18,703 2,209,523
Vendor/Comments
Otay Water District
P2625 - PL - 12" 978 Zone in Hidden Mesa Road
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT 2554 SWEETWATER SPRINGS BLVD., SPRING VALLEY, CA. 91978, (619) 670-2222
CONTRACT/P.O. CHANGE ORDER No. 4
PROJECT/ITEM: Vista Vereda and Hidden Mesa Road Water Line Replacement
CONTRACTOR/VENDOR: Cass Construction, Inc. dba Cass Arrieta REF.CIP No.: P2574/P2625
APPROVED BY: Board REF. P.O. No: 720647 DATE: 3/2/20
DESCRIPTION:
See attached page 2 of 2for continuation.
REASON:
See attached page 2 of 2 for continuation.
CHANGE P.O. TO READ:
Revise Contract to add $1,880.00 and add 0 day’s time for a total Contract amount of $3,013,206.44 with a Contract Duration of 350 Calendar Days.
ORIGINAL CONTRACT/P.O. AMOUNT: $ 2,848,364.00 ADJUSTED AMOUNT FROM PREVIOUS CHANGE: $ 162,962.44 TOTAL COST OF THIS CHANGE ORDER: $ 1,880.00
NEW CONTRACT/P.O. AMOUNT IS: $ 3,013,206.44 ORIGINAL CONTRACT COMPLETION DATE: 7/8/19 CONTRACT/P.O. TIME AFFECTED BY THIS CHANGE: Yes REVISED CONTRACT COMPLETION DATE: 11/25/19
IT IS UNDERSTOOD WITH THE FOLLOWING APPROVALS, THAT THE CONTRACTOR/VENDOR IS AUTHORIZED AND DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES. IT IS ALSO AGREED THAT THE TOTAL COST FOR THIS CHANGE ORDER CONSTITUTES FULL AND COMPLETE COMPENSATION FOR OBLIGATIONS REQUIRED BY THE CONTRACT/P.O. ALL OTHER PROVISIONS AND REQUIREMENTS OF THE CONTRACT/P.O. REMAIN IN FULL FORCE AND EFFECT.
CONTRACTOR/VENDOR: STAFF APPROVALS:
SIGNATURE: PROJ. MGR: DATE:
NAME: Wes Wise DIV.MGR:DATE:
TITLE: President DATE: CHIEF: DATE:
COMPANY & Cass Construction, Inc. dba Cass Arrieta ADDRESS: P.O. Box 309 DISTRICT APPROVAL:
El Cajon, CA 92022 GEN. MANAGER: DATE:
COPIES: FILE (Orig.),CONTRACTOR/VENDOR,CHIEF-ENGINEERING,CHIEF-FINANCE,ENGR. MGR.
ACCTS PAYABLE,INSPECTION,PROJ. MGR.,ENGR. SECRETARY,PURCHASING,PROJECT BINDER
Contract / P.O. Change Order No. 4 page 2 of 2 Description of Work Description
Increase Decrease Time
Item No. 1: This Change Order provides for final erosion control betterments per COR 015. (CIP P2574) $2,400.00 0
Item No. 2: This Change Order provides for reimbursement for District personnel and equipment costs incurred during cell-crete spill cleanup. (CIP P2574) $1,260.00 0
Item No. 3: This Change Order increases the amount allocated for Bid Item 32, Reinstall Chain Link Fence (H=4 to 6-Ft) by $740.00 to a new authorized amount of $33,522.00. (Add 10 LF at $74.00/LF) (CIP P2625)
$740.00 0
Sub Total Amount $3,140.00 $1,260.00 0
Total Net Change Order Amount $1,880.00
Revisions to: BID SCHEDULE Item # Description Quantity Unit Unit Price Amount
32 Reinstall Chain Link Fence (H=4 to 6-Ft) 453 LF $74.00 $33,522.00
Reason: Item No. 1: Subsequent to recent rains it was determined that additional erosion control measures were required to improve existing draining conditions until native vegetation can stabilize soil conditions. This Change Order is necessary to resolve all costs and time associated with implementation of this work scope. Item No. 2: The Contractor experienced a failure during pumping of grout required for abandonment of the existing waterline. The District assisted cleanup efforts to minimize impacts to affected ratepayers. This Change Order is necessary to recover all District costs time associated with provided assistance. Item No. 3: The Contract Bid Item No. 32, Reinstall Chain Link Fence (H=4 to 6-Ft), required a quantity adjustment resulting from field conditions.
15
Customer Contract No.:
Project Name:VISTA VEREDA WATER LINE REPLAC
Description Additional Erosion & BMP Repairs
P2574
Change Order Request No.:
Date:02/14/2020 CA Job #:18-2597
From:To:DOUGLAS COOK
OTAY WATER DISTRICT
2554 SWEETWATER SPRINGS BLVD
SPRING VALLEY, CA 91978-2004
O.(619) 670-2777
C.858-518-3072
dcook@alysoncorp.com
MATT GOUBEAUX
CASS ARRIETA
PO BOX 309
EL CAJON, CA. 92022
O.(619)590-0929
F.(619)590-1202
mgoubeaux@cassarrieta.com
W/S:02/01/2020
Description Cost Code Qty U/M Unit Price Total PriceItem
1 Additional Rutting Repairs and Straw
Wattle Installation
150 LF. $16.00 2,400.0044-0001
$2,400.00Total:
Additional Work Days Requested:
Notes: Additional work to repair minor rutting and install staw watle along fence at north end of Vista Vereda.
Page 1 of 1
Vista Vereda and Hidden Mesa Road Water Line Replacement Project: P2574/P2625
Consultant/Contractor: Cass Construction, Inc. dba Cass Arrietta Subproject: 001103
APPROVED
C.O. AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 $45,750.67 GM 10/8/2019
Change order No. 1 addresses 13 items including the cut
and cap of mainline, several minor field modifications,
interconnect piping revisions west of Hidden Mesa Trail,
additional trench resurfacing as required by the County of
San Diego, credits for unused allowances, and adjustments
in contract time due to changes and weather.
Contractor
2 $115,213.59 Board 11/7/2019
Change Order No. 2 addresses 10 items including revisions
to the alignment due to utility conflicts in Vista Vereda; utility
conflicts at the intersection of Vista Vereda and Vista
Grande; and credits for unused allowances. The change
order also provides an adjustments in contract time.
Contractor
3 $1,998.18 Board 2/6/2020
Change Order No. 3 addresses 17 items including revisions
to the 12-inch connection to the reservoir pipeline and
adjustments to contract bid item quantities due to field
conditions.
Contractor
4 $1,880.00 Board
Change Order No. 4 addresses three items including:
additional erosion control measures to improve the existing
draining conditions; reimbursement for District personnel and
equipment costs incurred during the cellular concrete spill
cleanup; and reconciliation of Bid Item No. 32 Reinstall Chain
Link Fence due to field conditions.
Contractor
5
6
7
8
9
10
11
12
13
14
15
Total C.O.'s To Date: $164,842.44 5.8%
Original Contract Amount:$2,848,364.00
Current Contract Amount:$3,013,206.44
Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. %
3/20 $1,880.00 $3,000 Insp $1,880.00 0.1%
$7,000 PM/Supervisor 0.0%
$15,000 DivM 0.0%
$20,000 Asst Chief
$30,000 Chief 0.0%00%$75,000 GM 0.0%
>$75,000 Board 0.0%
CHANGE ORDER LOG
P:\WORKING\CIP P2574 12-Inch PL Replacement, 978 Zone, Vista Vereda\Construction\Change
Orders\200309_COLOG 1 3/9/2020
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE: April 1, 2020
SUBMITTED BY:Dan Martin
Assistant Chief of Engineering
PROJECT: P2083-001103
P2562-001103
DIV. NO.2
APPROVED BY: Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT:Approval of Change Order No. 6 in an amount not-to-exceed
$40,125.89 to the Construction Contract with Pacific Hydrotech
Corporation for the 870-2 Pump Station Replacement Project
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
authorize the General Manager to execute a Change Order No. 6 to the
existing construction contract with Pacific Hydrotech Corporation
(Pacific Hydrotech) in the amount of $40,125.89 for the 870-2 Pump
Station Replacement Project (Project) (see Exhibits A and B for
Project location).
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To obtain Board authorization for the General Manager to execute
Change Order No. 6 in the amount of $40,125.89 to the construction
contract with Pacific Hydrotech for the 870-2 Pump Station
Replacement Project.
AGENDA ITEM 7c
2
ANALYSIS:
The District’s existing High Head (870-1) and Low Head (571-1) Pump
Stations constructed in 1962 and 1966, respectively, have reached the
end of their useful lives. The 870-2 Pump Station Project will
replace these facilities and includes replacement of existing
Reservoir inlet/outlet piping, construction of recirculation system
pumps, and a chloramine disinfection booster system. Improvements of
the access road and the installation of utilities for electrical,
gas, sewer, and communication services are also included.
The 870-2 Pump Station Replacement Project also includes the
replacement of the 571-1 Reservoir (36.7 MG) floating cover and
liner. The 571-1 Reservoir was originally built in 1967. In 1993
the District retrofitted the existing Reservoir to install a
reservoir liner and floating cover. The existing liner and floating
cover were more than 24 years old and nearing the end of their useful
lives. As part of the overall Project, the existing Reservoir outlet
stub-out piping located beneath the Reservoir was replaced, which
allows the new 870-2 Pump Station to simultaneously perform its
primary function (pump from the 571-1 Reservoir to the 870-1
Reservoir), recirculate the 571-1 Reservoir, and also achieve a
future function (pump from the 571-1 Reservoir to the 624 Pressure
Zone). The replacement of the cover and liner under this Project
mitigates having to take this critical Reservoir out of service a
second time within the next few years.
The demolition of the Low Head and High Head Pump Stations will be
completed at a later date (not part of this Project) when the new
870-2 Pump Station has been brought online and completed its warranty
period.
At the July 5, 2017 Board Meeting, the Board awarded a construction
contract in the amount of $16,925,900.00 to Pacific Hydrotech. Since
the award of the construction contract, five (5) change orders have
been approved.
Change Order No. 1, which totaled $26,269.83, compensated the
contractor for changes associated with the 571-1 Reservoir cover and
liner improvements. These changes included provisions for additional
cover buoyancy floats; replacement of existing unsalvageable batten
bar anchor bolts; contractor reservoir disinfection in lieu of
contract specified District disinfection; weather related days; and
an adjustment to the contract milestone date for the 571-1 Reservoir.
In total, Change Order No. 1 added twenty-seven (27) days to the
contract.
3
Change Order No. 2, which totaled $48,698.12, compensated the
contractor for changes including the following: modifications to the
new electric meter room to accommodate San Diego Gas & Electric
accessibility requirements; modifications to provide two (2) 250-
gallon aqueous ammonia tanks in lieu of one (1) 550-gallon tank to
better serve Station operations; provisions for two (2) 30-inch
magnetic flow meters in lieu of ultrasonic flow meters to provide
more resiliency and flexibility with anticipated flow conditions; and
repairs to an existing rectifier electrical conduit adjacent to the
access road. Change Order No. 2 also addressed contract time
including weather days. In total, Change Order No. 2 added sixteen
(16)days to the contract.
Change Order No. 3, which totaled $64,864.00, compensated the
contractor for several changes including the following:
modifications to the dimensions of the backup generator concrete
foundation pad; addition of structural support members for the
heating, ventilation, and air-conditioning (HVAC) equipment and
emergency generator muffler; revisions to the Stations louvers and
associated masonry; installation of door louvers for the compressor
room doors; increasing the discharge piping on the 570 zone
(recirculation) pumps to 18-inches; revisions to provide a sewn
protective thermal insulation jacket with clips for the emergency
generator muffler and exhaust piping; modifying the emergency
generator exhaust roof penetration to simplify future muffler
removal/servicing; and consolidation of exterior lighting controls in
a new contactor and control panel. Change Order No. 3 also addressed
contract time including weather days. In total, Change Order No. 3
added twenty-five (25) days to the contract.
Change Order No. 4, which totaled $49,157.89, compensated the
contractor for several changes including the following: surge
protection for indoor devices; additional pipe supports; spare engine
exhaust catalysts; modification to Victaulic couplings; and
relocation of chemical analyzers. Change Order No. 4 also reconciled
credits associated with the unused portions of the
Environmental/Regulatory Compliance and Reservoir Improvement
Allowance items. Change Order No. 4 also addressed contract time
including weather days. In total, Change Order No. 4 added forty-
four (44) days to the contract.
4
Change Order No. 5, which totaled $95,725.00, compensated the
contractor for several changes including the following: profile and
alignment revisions to the 66-inch and 30-inch discharge yard piping
and suction header elevation; modifications to the Type D emergency
batteries and test switch locations; addition of a fuel containment
structure; providing position switches at the surge tank isolation
valve; modifications to the thermal insulation for the pump engine
coolant line piping; fire rated door hardware at door D-12; addition
of bollards and a metal protective enclosure at the diesel fuel lines
entrance location to the Pump Station; revisions to the suction
header platform handrail; revisions to the pump engine natural gas
pipe sizes; modifications to the cable tray support; ethernet
communications to the pump engines; additional costs associated with
dewatering existing vault No. 7; elevation and layout modifications
to the suction header walkway and engine platform structures; and
credits for unused items. Change Order No. 5 also addressed contract
time including weather days. In total, Change Order No. 5 added
thirty-eight (38) days to the contract.
Change Order No. 6, which is the subject of this staff report,
provides for the following twelve (12) items, as detailed in the
attached Exhibit C:
1.Credits associated with revisions to chain link fencing.
2.Modifications to the overhead crane electrical feed circuit.
3.Installation of flashing around pump engine exhaust canopy roof
penetration.
4.Handrail and steps at the fuel containment structure.
5.Incorporation of handwheels on all suction header valves.
6.Type II gate well frames and lids.
7.Additional conduit between CP-100 and the telephone backboard.
8.Additional electrical grounding of the gas engines.
9.Custom grade adjustment for the oil interceptor.
10.Relocation of pump engine batteries.
11.Modifications to the planned hydroseed mix.
12.Addition of days due to weather impacts.
In total, the cost associated with the items in Change Order No. 6 is
$40,125.89. Time impacts associated with this change are also
provided in Exhibit C. The twenty-seven (27) additional days added
to the contract will result in a revised total contract duration of
977 calendar days.
As of March 2020, the physical construction of the 870-2 Pump Station
is approximately 95% percent complete and Project startup has begun.
5
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP P2083, as approved in the FY 2020 budget, is
$19,550,000. Total expenditures, plus outstanding commitments and
forecast, are $19,547,852. See Attachment B-1 for the budget detail.
Based on a review of the financial budget, the Project Manager
anticipates that the budget is sufficient to support the Project.
The total budget for CIP P2562, as approved in the FY 2020 budget, is
$2,900,000. Total expenditures, plus outstanding commitments and
forecast, including this contract, are $2,877,536. See Attachment B-
2 for the budget detail. Based on a review of the financial budget,
the Project Manager anticipates that the budget 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 for
CIP P2083 and for CIP P2562.
GRANTS/LOANS:
Engineering staff researched and explored grants and loans and found
none available for this Project.
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 District’s Vision, “To be a model water agency by
providing stellar service, achieving measurable results, and
continuously improving operational practices.”
LEGAL IMPACT:
None.
DM/RP:jf
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Staff Reports\BD 04-01-20 Pacific Hydrotech Change Order 6\BD 04-
01-20 Staff Report CO No. 6 for 870-2 PS.docx
Attachments: Attachment A – Committee Action
Attachment B1 – P2083 Budget Detail
Attachment B2 - P2562 Budget Detail
Exhibit A – 870-2 Pump Station Project Location
Exhibit B - 870-2 Pump Station Project Detail Map
Exhibit C – Change Order No. 6
ATTACHMENT A
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 6 in an amount not-to-exceed
$40,125.89 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
COMMITTEE ACTION:
The Engineering, Operations, and Water Resources Committee
(Committee) reviewed this item at a meeting held on March 17, 2020
and the following comments were made:
•Staff recommended that the Board authorize the General Manager
to execute a Change Order No. 6 to the existing construction
contract with Pacific Hydrotech Corporation (Pacific Hydrotech)
in the amount of $40,125.89 for the 870-2 Pump Station
Replacement Project.
•It was noted that the 870-2 Pump Station Replacement Project
also includes the replacement of the 571-1 Reservoir (36.7 MG)
floating cover and liner.
•Details of Change Order Nos. 1 through 5 are provided on pages
2-4 of the staff report.
•Change Order No. 6 provides for twelve (12) items. See
Exhibit C of the staff report for details.
•Staff stated that the items included in Change Order No. 6
improve future maintainability of the station, include
additional scope to improve long term operations, and provide
changes to be compliant with current requirements. The change
order also addresses contract time and reconciles credits
associated with item revisions.
•In response to a question from the Committee, staff stated that
the 870-2 Pump Station project (P2083) budget is sufficient to
support the Project and indicated that the contingency fund has
a remaining balance of $185,000 (Refer to Attachment B-1).
Following the discussion, the Committee supported staffs’
recommendation and presentation of this item to the full board on the
consent calendar.
ATTACHMENT B-1 – P2083 Budget Detail
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 6 in an amount not-to-exceed
$40,125.89 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
Date: 03/09/20
Budget
19,550,000
Planning
Consultant Contracts 100,000 73,904 26,096 100,000 HELIX ENVIRONMNTL PLANNING INC
17,094 17,094 - 17,094 JONES & STOKES ASSOCIATES INC
211,034 211,034 - 211,034 ICF JONES & STOKES INC
Regulatory Agency Fees 2,109 2,109 - 2,109 CA DEPT OF FISH & WILDLIFE
720 720 - 720 CALIFORNIA REGIONAL WATER
1,570 1,570 - 1,570 SAN DIEGO COUNTY WATER AUTH
2,286 3,924 - 3,924 STATE WATER RESOURCES
Service Contracts 2,260 2,260 - 2,260 COUNTY OF SAN DIEGO
164 164 - 164 SAN DIEGO DAILY TRANSCRIPT
505 505 - 505 THE SAN DIEGO UNION-TRIBUNE
Standard Salaries 219,000 213,836 5,164 219,000
Fixed Asset 580,444 580,444 - 580,444
Total Planning 1,137,187 1,107,566 31,259 1,138,825
Design 001102
Consultant Contracts 136 136 - 136 THE WATCHLIGHT CORPORATION
4,850 4,850 - 4,850 BURKETT & WONG ENGINEERS INC
14,068 14,068 - 14,068 SOUTHERN CALIFORNIA SOIL
3,034 3,034 - 3,034 RICK ENGINEERING COMPANY
4,625 4,625 - 4,625 ROGER B WOODHULL
22,149 22,149 - 22,149 NINYO & MOORE GEOTECHNICAL AND
10,484 10,484 - 10,484 HUNSAKER & ASSOCIATES
6,086 6,086 - 6,086 HDR ENGINEERING INC
682,870 682,870 - 682,870 CAROLLO ENGINEERS INC
7,974 7,974 - 7,974 AEGIS ENGINEERING MGMT INC
Regulatory Agency Fees 3,694 3,694 - 3,694 SAN DIEGO GAS & ELECTRIC
20,000 18,348 1,652 20,000 COUNTY OF SAN DIEGO
Service Contracts 98 98 - 98 DAILY JOURNAL CORPORATION
Standard Salaries 677,054 677,054 - 677,054
Supplier Contracts 5,350 5,350 - 5,350 INLAND AERIAL SURVEYS INC
Total Design 1,462,472 1,460,820 1,652 1,462,472
ConstructionConstruction Contracts - - -
13,935,507 12,871,401 1,064,106 13,935,507 PACIFIC HYDROTECH CORPORATION
40,126 - 40,126 40,126 Pacific Hydrotech Co. CO No. 6
733,448 677,442 56,006 733,448 PACIFIC WESTERN BANK
2,000 790 1,210 2,000 CLARKSON LAB
Consultant Contracts 437,691 412,363 25,328 437,691 CAROLLO ENGINEERS INC
- - - -
1,319 1,319 - 1,319 NINYO & MOORE GEOTECHNICAL AND
9,225 9,225 - 9,225 NV5 INC
17,623 17,623 - 17,623 RBF CONSULTING
1,069,994 776,525 293,469 1,069,994 MICHAEL BAKER INT'L INC
29 29 - 29 PARKING and TOLLS
438 438 - 438 NINYO & MOORE GEOTECHNICAL
OTHER AGENCY FEES 15,000 7,998 7,002 15,000 COUNTY OF SAN DIEGO
179,854 179,854 - 179,854 SAN DIEGO GAS & ELECTRIC
Professional Legal Fees 276 276 - 276 ARTIANO SHINOFF
280 280 - 280 STUTZ ARTIANO SHINOFF
Service Contracts 3,628 3,628 - 3,628 MAYER REPROGRAPHICS INC
119 119 - 119 SAN DIEGO DAILY TRANSCRIPT
Standard Salaries 240,000 193,202 46,798 240,000
60,000 - 60,000 60,000 Security System
15,000 - 15,000 15,000 Communications Connection
Contingency 185,000 - 185,000 185,000 1.3% of Construction Contract
Total Construction 16,946,556 15,152,511 1,794,045 16,946,556
Grand Total 19,546,214 17,720,896 1,826,956 19,547,852
Vendor/Comments
Otay Water District
p2083-PS -870-2 Pump Station
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
ATTACHMENT B-2 – P2562 Budget Detail
SUBJECT/PROJECT:
P2083-001103
P2562-001103
Approval of Change Order No. 6 in an amount not-to-exceed
$40,125.89 to the Construction Contract with Pacific
Hydrotech Corporation for the 870-2 Pump Station
Replacement Project
Date: 03/09/2020
Budget
2,900,000
Planning
Regulatory Agency Fees 50 50 -50 PETTY CASH CUSTODIAN
Total Planning 50 50 -50
Design 001102
Standard Salaries 51,320 51,320 -51,320
Total Design 51,320 51,320 -51,320
Construction
Standard Salaries 30,000 15,916 14,084 30,000
129,300 129,300 -129,300 MICHAEL BAKER INT'L INC
2,414,577 2,384,358 30,218 2,414,577 PACIFIC HYDROTECH CORPORATION
127,083 125,493 1,590 127,083 PACIFIC WESTERN BANK
206 206 -206 CLARKSON LAB & SUPPLY
Contingency 125,000 - 125,000 125,000 4.9% of Construction Contract
Total Construction 2,826,166 2,655,273 170,893 2,826,166
Grand Total 2,877,536 2,706,643 170,893 2,877,536
Vendor/Comments
Otay Water District
p2562-Res - 571-1 Reservoir Cover/Liner Replac
Committed Expenditures
Outstanding
Commitment &
Forecast
Projected Final
Cost
OTAY WATER DISTRICT870-2 PUMP STATIONLOCATION MAP
EXHIBIT A
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit A, Location Map, May 2016.mxd
ROLLRESERVOIR(571-1)
LOW HEADPUMP STATION
HIGH HEADPUMPSTATION
FOR PROJECT DETAILSEE EXHIBIT B
ACCESS FROMALTA RD
OWD PROPERTY LINE(APPROX)
FirearmsTrainingFacility
VICINITY MAP
PROJECT SITE
NTSDIV 5
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DIV 2
DIV 4
DIV 3
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OTAY WATER DISTRICT870-2 PUMP STATIONPROJECT DETAIL MAP
EXHIBIT B
CIP P2083F
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Graphics\Exhibits-Figures\Exhibit B, Project Detail Map, May 2016.mxd
0 10050
Feet
Legend
ExistingEasementOWD
ExistingParcelOWD
ExistingEasementSDGE
ProposedStructure
ProposedWater
ProposedStormDrain
ProposedSewer
ProposedGas
ProposedSiteCivil
ExistingWaterOWD
3/9/20
Contract / P.O. Change Order No. 6 page 2 of 3 Description of Work
Description
Increase Decrease Time
Item No. 1: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for revisions to chain link fencing requirements including deletion of fencing around the pump engine pad, deletion of vinyl coating from fence fabric and addition of a manual double gate between the pump station and Sheriff facility per COR 99.
$5,216.11 0
Item No. 2: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for modifications to the overhead crane electrical feed circuit breaker, conductor and conduit size per COR 100.
$1,047.00 0
Item No. 3: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for flashing around the pump engine exhaust canopy roof penetration per COR 102.
$4,777.00 7
Item No. 4: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for handrail and steps at the fuel containment structure per COR 104.
$10,834.00 3
Item No. 5: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for incorporation of handwheels on all suction header valves per COR 106.
$3,760.00 1
Item No. 6: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides twelve type II gate well frames/lids per COR 107. $3,130.00 1
Item No. 7:
Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides a new 2-inch conduit between CP-100 and the telephone backboard per COR 108.
$2,872.00 1
Item No. 8: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for electrical grounding of the gas engines per COR 109. $1,610.00 1
Item No. 9: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides a custom grade adjustment section to the oil interceptor per COR 110.
$3,624.00 1
Item No. 10: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for relocation of the pump engine batteries per COR 111. $7,627.00 4
Item No. 11: Charges attributable to the 870-2 PS (CIP 2083). This Change Order provides for modifications to the hydroseed mix design and increases the seed content per COR 113.
$6,061.00 0
Item No. 12: Add eight (8) calendar days due to weather impacts per Contract Specifications 00700-8.5. $0.00 $0.00 8
Sub Total Amount $45,342.00 $5,216.11 27
Total Net Change Order Amount $40,125.89
Contract / P.O. Change Order No. 6 page 3 of 3
Reason: Item No. 1: During fence layout discussions it was determined that; fencing was no longer required around the pump engine pad, deletion of the vinyl coating on the fence fabric would provide a consistent galvanized fabric with adjacent District fencing and incorporation of a new 14-foot vehicle double gate between the Pump Station site and Sheriff facility would be beneficial for alternate access. This Change Order is required to implement the required modifications resolving all costs associated with COR 99. Item No. 2: The Contract specified overhead crane circuit breaker, conduit and electrical conductor feeder size. During submittal review it was determined that the submitted crane required a larger circuit breaker, electrical conductor feeder size and conduit to accommodate the provided equipment. This change order is required to implement the required modifications resolving all costs associated with COR 100. Item No. 3: The Contract did not provide flashing at the pump engine penetration through the canopy as requested by Operations & Maintenance. This change order is required to provide the requested flashing resolving all costs with COR 102. Item No. 4: During construction it was determined that the fuel containment area would benefit from incorporation of handrail and steps to improve safety and simplify ingress/egress for diesel fuel transfer pump maintenance. This change order is required to provide the handrail and steps resolving all costs with COR 104. Item No. 5: The Contract Documents provided a T-handle wrench nut for suction header valve operations. It was determined that handwheels with the same steel coating as interior piping would provide increased functionality. This change order is required to implement the modification resolving all costs with COR 106. Item No. 6: During construction it was determined that the plans did not incorporate the District standard two-piece gate well lids as part of the included details. This change order is required to implement the modification resolving all costs with COR 107. Item No. 7:
The Contract did not identify a conduit pathway between the telephone backboard and CP-100. During construction it was determined that a conduit pathway would mitigate potential mechanical damage to the datalink required between the backboard and CP-100. This change order is required to install the conduit and resolve all costs associated with COR 108. Item No. 8: Subsequent to pump engine installation it was determined that installation of an additional engine ground would mitigate electrical noise on data and control conductors increasing operational reliability. This change order is required to implement the modification and resolve all costs associated with COR 109. Item No. 9: The Contract specified installation of a specific oil interceptor. Resulting from the required depth of the drain line a custom riser extension was required to facilitate access for cleaning and maintenance. This change order is required to implement the modification and resolve all costs associated with COR 110. Item No. 10: Subsequent to installation of the pump engines, Operations & Maintenance requested relocation of the batteries from the engine skid to ground level to facilitate access and simplify future battery replacement by relocating the batteries closer to a vehicle access point. This change order is required to implement the modification and resolve all costs associated with COR 111. Item No. 11: During submittal review it was determined to change the hydroseed mix design and seed content. This change order is required to implement the modification and resolve all costs associated with COR 113. Item No. 12: Contract Documents Section 00700-8.5 provides for no cost time extensions due to weather impacts on the project progress. Weather impacted the project eight (8) days between December 16, 2019 and February 29, 2020. The project was impacted on December 23, 26 and 27, 2019, January 17, 21 and 22, February 10 and 11, 2020 due to weather.
870-2 Pump Station Replacement Project Project: P2083/P2562
Consultant/Contractor: Pacific Hydrotech Corporation Subproject: 001103
APPROVED
C.O. AMOUNT BY DATE DESCRIPTION TYPE C.O.
1 $26,269.83 GM 5/18/2018
Change order provides for additional buoyancy floats, anchor
bolts, and a modified disinfection procedure for the 571-1
Reservoir. Also addresses contract time for weather.
Contractor
2 $48,698.12 GM 1/29/2019
Electric service room modifications; ammonia storage
modifications; replace ultrasonic flow meters with magnetic
type; relocate existing rectifier power conduit; and weather
days
Contractor
3 $64,864.00 Board 4/4/2019
Bathroom fixtures; backup generator concrete foundation
pad modifications; HVAC muffler support structural members;
louver and pilaster modifications; door louvers; increase
pump discharge pipe size to 18-inch; modify emergency
generator thermal insulation; emergency generator exhaust
roof penetration; exterior lighting controls modifications;
weather days.
Contractor
4 $49,157.89 Board 11/7/2019
Change order addresses 28 specific items including but not
limited to surge protection for indoor devices, additional pipe
supports, exhaust fan for EF-4, spare exhaust catalyst,
modifications to Victaulic couplings, relocation of chemical
analyzers. Also includes time adjustments and weather days.
Contractor
5 $95,725.00 Board 2/6/2020
Change order addresses 23 specific items including but not
limited to profile and alignment revisions to the 66-inch and
30-inch discharge yard piping; addition of a fuel containment
structure; modifications to emergency batteries and test
switch locations; modifications to the thermal insulation for
the pump engine coolant line piping; Ethernet communication
to the pump engines; modifications to the suction header
walkway and engine platform structures; and credits for
unused allowance items. Also includes time adjustments and
weather days.
Contractor
6 $40,125.89 Board
Change Order addresses 12 specific items including a credit
for fencing, modifications to the crane electrical, canopy
flashing around engine exhaust, handrail and steps for fuel
containment, handwheels for suction header valves, type II
gate well frames/lids, conduit between CP-100 and
telephone backboard, additional grounding for gas engines,
grade adjustment for oil interceptor, relocation of engine
batteries, modifications to hydroseed mix, and weather days.
Contractor
7
8
9
10
Total C.O.'s To Date: $324,840.73 1.9%
Original Contract Amount:$16,925,900.00
Current Contract Amount:$17,250,740.73
Month Net C.O.$ Limit Authorization Absolute C.O.$ C.O. %
3/20 $40,125.89 $3,000 Insp $40,125.89 0.2%
$7,000 PM/Supervisor 0.0%
$15,000 Manager 0.0%
$20,000 Asst. Chief 0.0%
$30,000 Chief 0.0%
$75,000 GM 0.0%
>$75,000 Board 0.0%
CHANGE ORDER LOG
P:\WORKING\CIP P2083 870-2 Pump Station Replacement\Construction\Change Orders\COLOG_2003091 3/9/2020
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: April 1, 2020
SUBMITTED BY: Eid Fakhouri, Finance Manager PROJECT: DIV. NO.All
APPROVED BY: Kevin Koeppen, Assistant Chief Financial Officer
Joseph R. Beachem, Chief Financial Officer
Jose Martinez, General Manager
SUBJECT: Adopt Resolution No. 4378 Designating Specific Staff
Positions to be Authorized as Agents to Deal with the
State of California, Office of Emergency Services (Cal OES),
on the District’s Behalf in All Matters Pertaining to
Disaster Assistance
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4378 designating specific staff
positions to be authorized as agents to deal with the State of
California, Office of Emergency Services (Cal OES), on the District’s
behalf in all matters pertaining to disaster assistance.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To authorize District staff in the positions of Safety and Security
Specialist, Finance Manager, and Environmental Compliance Specialist,
to be the authorized contacts on behalf of the District for all
matters pertaining to disaster assistance.
AGENDA ITEM 7d
2
ANALYSIS:
It is important that, in the event of an emergency, the District is
able to efficiently coordinate and execute claims with Cal OES and/or
FEMA.
In the three instances below, the District applied to the Federal
Emergency Management Agency (FEMA) and (Cal OES) for disaster
assistance to help pay for repairs. FEMA requires all claims to be
processed through Cal OES. Cal OES requires the governing body of
each agency to formally designate specific agents by position title,
to represent the agency in all matters pertaining to their
application for disaster assistance. Cal OES will not release any
grant money to an agency that has not provided them with a fully
executed Designation of Agent(s) Resolution and Cal OES Form 130
(Attachment C).
In December 2007, as a part of working with Cal OES to obtain funds
for repairs to District property from the October 2007 Harris Fire,
the Board passed Resolution No. 4115 to Designate District agents for
Disaster Assistance.
In April 2011, as a part of working with the Cal OES to obtain funds
for repairs to District property from the December 2010 rainstorms,
the Board passed Resolution No. 4170 to Designate District agents for
Disaster Assistance.
In April of 2017, as a part of working with Cal OES to obtain funds
for repairs to District property from the January 2017 winter storms,
the Board passed Resolution No. 4330 to designate specific staff
positions to be authorized as agents to deal with the Cal OES in all
matters pertaining to disaster assistance. Cal OES policy mandates
that this resolution is only valid for a maximum of three (3) years.
The District’s previous resolution, approved in May 2017, will expire
in May 2020.
The District has identified the following three positions as being
both knowledgeable and appropriate for working directly with Cal OES
and FEMA: 1) Safety and Security Specialist, 2) Finance Manager, and
3) Environmental Compliance Specialist. These are the same positions
that were identified for the previous resolution.
This is a universal resolution and is effective for all open and
future disasters up to three (3) years following the date of approval
below. The three (3) year limit is established by Cal OES and the
universal resolution would allow the list of authorized individuals
3
to approve requests for financial assistance in the event of any
disaster over the duration of the resolution.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
This specific action does not authorize any spending or the receipt
of funds, it only facilitates future interactions to obtain financial
assistance.
STRATEGIC GOAL:
The District ensures its continued financial health through the
establishment of proper relief in the case of a natural disaster.
LEGAL IMPACT:
None.
Attachments: Attachment A – Committee Action
Attachment B – Resolution No. 4378
Attachment C – Cal OES Form 130
ATTACHMENT A
SUBJECT/PROJECT: Adopt Resolution No. 4378 Designating Specific Staff
Positions to be Authorized as Agents to Deal with the
State of California, Office of Emergency Services (Cal
OES), on the District’s Behalf in All Matters Pertaining to
Disaster Assistance
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on March 16, 2020 and the following comments were made:
•Staff requested that the Board adopt Resolution No. 4378
designating specific staff positions to be authorized as agents
to deal with the State of California, Office of Emergency
Services (Cal OES), on the District’s behalf in all matters
pertaining to disaster assistance.
•Staff presented information from the staff report.
•In response to an inquiry from the Committee, staff indicated
that such resolutions with regard to disaster assistance were
utilized for the Harris Fire and for damage that the District
sustained from the last two winter storms. It could also
possibly be utilized for any financial assistance that the
District may need connected with the Coronavirus situation.
•Staff indicated, in response to another inquiry from the
Committee, that the General Manager is not listed in the
resolution as it specifically designates staff in the technical
positions that would have knowledge of completing forms,
providing information, etc., associated with filing a claim.
Upon completion of the discussion, the Committee supported presenting
this item on the consent calendar.
RESOLUTION NO. 4378
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE OTAY WATER DISTRICT
FOR DESIGNATION OF AGENTS TO
THE STATE OF CALIFORNIA,
OFFICE OF EMERGENCY SERVICES
WHEREAS, the Otay Water District Board of Directors have
been presented with a “Designation of Applicant’s Agent
Resolution” for the Otay Water District, authorizing it’s
agent(s) to execute for and on behalf of the District for the
purpose of obtaining certain federal financial assistance under
P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief
and Emergency Assistance Act of 1988, and/or state financial
assistance under the California Disaster Assistance Act; and
WHEREAS, the Board needs to authorize its agent(s) to
provide to the State Office of Emergency Services for all
matters pertaining to such state disaster assistance the
assurances and agreements required; and
WHEREAS, it is in the interest of the District to designate
agents;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
the Board of Directors of the Otay Water District that the
following three positions are so designated as Authorized
Agents: 1) Safety and Security Specialist; 2) Finance Manager;
and 3) Environmental Compliance Specialist.
PASSED, APPROVED AND ADOPTED by the Board of Directors of
Otay Water District at a board meeting held this 1st day of
April 2020, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
________________________
President
ATTEST:
____________________________
District Secretary
STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICESCal OES 130 Cal OES ID No:______________________
DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES
BE IT RESOLVED BY THE OF THE(Governing Body)(Name of Applicant)
THAT ,OR
(Title of Authorized Agent)
,OR(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , a public entity(Name of Applicant)established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency
Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T.Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
THAT the ________________________________________________, a public entity established under the laws of the State of California,(Name of Applicant)hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.
Please check the appropriate box below:
This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below.
This is a disaster specific resolution and is effective for only disaster number(s) ________________________
Passed and approved this day of ,20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
CERTIFICATION
I,,duly appointed and of
(Name)(Title)
,do hereby certify that the above is a true and correct copy of a(Name of Applicant)
Resolution passed and approved by the of the
(Governing Body)(Name of Applicant)
on the day of ,20 .
(Title)
Page 1
(Signature)
Cal OES 130 (Rev.9/13)
STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICESCal OES 130 -Instructions
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted Resolution is older than three (3) years from the last date of approval, is invalid or has not been submitted.
When completing the Cal OES Form 130,Applicants should fill in the blanks on page 1.The blanks are to be filled in asfollows:
Resolution Section:
Governing Body: This is the group responsible for appointing and approving the Authorized Agents. Examples include: Board of Directors,City Council,Board of Supervisors,Board of Education, etc.
Name of Applicant:The public entity established under the laws of the State of California. Examples include: School
District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego,Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.
Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency
Management Agency and the Governor’s Office of Emergency Services regarding grants applied for by the Applicant. There aretwowaysofcompletingthissection:
1.Titles Only: If the Governing Body so chooses,the titles of the Authorized Agents would be entered here,not
their names.This allows the document to remain valid (for 3 years)if an Authorized Agent leaves the positionandisreplacedbyanotherindividual in the same title.If “Titles Only”is the chosen method,this document
must be accompanied by a cover letter naming the Authorized Agents by name and title. This cover letter canbe completed by any authorized person within the agency and does not require the Governing Body’s signature.
2.Names and Titles: If the Governing Body so chooses,the names and titles of the Authorized Agents would be
listed.A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the positionlisted on the document or their title changes.
Governing Body Representative: These are the names and titles of the approving Board Members.Examples include: Chairman of the Board,Director,Superintendent,etc. The names and titles cannot be one of the
designated Authorized Agents, and a minimum of two or more approving board members need to be listed.
Certification Section:
Name and Title: This is the individual that was in attendance and recorded the Resolution creation and approval.
Examples include:City Clerk,Secretary to the Board of Directors,County Clerk,etc. This person cannot be one of thedesignated Authorized Agents or Approving Board Member (if a person holds two positions such as City Manager and Secretary to the Board and the City Manager is to be listed as an Authorized Agent, then the same person holding theSecretary position would sign the document as Secretary to the Board (not City Manager) to eliminate “SelfCertification.”
Page 2Cal OES 130 (Rev.9/13)
1
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: April 1, 2020
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: Approve the Implementation of a 90-Day Moratorium on Any
Changes to All District Capacity and Annexation Fees.
GENERAL MANAGER’S RECOMMENDATION:
That the Board approve the implementation of a 90-day moratorium
on any changes to all district capacity and annexation fees.
PURPOSE:
To request that the Board implement a 90-day moratorium on any
changes to all District capacity and annexation fees.
BACKGROUND:
Prior to the current unprecedented COVID-19 health crisis, the
District was in the process of evaluating the water and sewer
capacity and annexation fees. This reevaluation of the fees was
well on its way to being presented to the Board when the crisis
changed the economic reality for the development community and
our customers. In light of the dramatic events that have
transpired, staff is recommending that the Board place a
moratorium on any changes to these fees and allow the current
events to develop and provide staff with additional clarity on
the impacts.
AGENDA ITEM 8a
2
Staff had prepared an informational item for the Board that was
to cover the following issues:
1. To review the preliminary findings of the consultant
2. The methodology of the fee calculation
3. Changes in construction costs
4. Changes in sewer costs due to the City’s Pure Water
Program
5. Consolidation of the new water supply fee
6. Typical life cycle of fee studies
7. Implementation options
8. Agency comparisons
With the current situation in such a state of flux, staff will
defer this presentation. It is also appropriate to defer plans
to meet with the BIA, SCEDC, local governments, and local
developers. These meetings will be rescheduled to when staff
has had a chance to assess how to best respond to the current
crisis.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
While the development community has been significantly impacted
by the current crisis, it is foreseeable that during this
moratorium, some meters will continue to be sold. At this time,
it is extremely difficult to estimate the number of meters that
will be purchased. The financial impact of this moratorium
would be the lost revenues equal to the meters sold times the
deferred increase in fees.
STRATEGIC GOAL:
To ensure that the costs of service are born by responsible
parties. This revenue source will help the District meet its
fiscal responsibility to its ratepayers.
LEGAL IMPACT:
None.
General Manager
Attachments:
None
STAFF REPORT
TYPE MEETING: Regular Board Meeting MEETING DATE: April 1, 2020
SUBMITTED BY: Jose Martinez,
General Manager
W.O./G.F. NO:DIV. NO.
APPROVED BY: Susan Cruz, District Secretary
Jose Martinez, General Manager
SUBJECT: Board of Directors 2020 Calendar of Meetings
GENERAL MANAGER’S RECOMMENDATION:
At the request of the Board, the attached Board of Director’s meeting
calendar for 2020 is being presented for discussion.
PURPOSE:
This staff report is being presented to provide the Board the
opportunity to review the 2020 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: Calendars of Meeting for 2020
G:\UserData\DistSec\WINWORD\STAFRPTS\Board Meeting Calendar 04-01-20.doc
AGENDA ITEM 9a
Board of Directors, Workshops
and Committee Meetings
(Via Teleconference)
2020
Regular Board Meetings:
Special Board or Committee Meetings (3rd
Wednesday of Each Month or as Noted)
January 8, 2020
February 5, 2020
March 11, 2020
April 1, 2020
May 13, 2020
June 3, 2020
July 1, 2020
August 5, 2020
September 2, 2020
October 7, 2020
November 4, 2020
December 2, 2020
January 22, 2020
February 19, 2020
March 18, 2020
April 22, 2020
May 20, 2020
June 17, 2020
July 22, 2020
August 19, 2020
September 23, 2020
October 21, 2020
November 18, 2020
December 16, 2020
SPECIAL BOARD MEETINGS / BOARD WORKSHOPS (Teleconference):
April 8, 2020 at 12:00 p.m.: Special Board Meeting
April 15, 2020 at 12:00 p.m.: Special Board Meeting
April 22, 2020 at 12:00 p.m.: Special Board Meeting
April 27, 2020 at 3:00 p.m.: Special Board Meeting/Workshop 1: Key Budget Assumptions
April 29, 2020 at 12:00 p.m.: Special Board Meeting
May 6, 2020 at 12:00 p.m.: Special Board Meeting
May 20, 2020 at 12:00 p.m.: Special Board Meeting
May 27, 2020 at 12:00 p.m.: Special Board Meeting
AGENDA ITEM 10a
DISCUSS OTAY WATER DISTRICT’S
CORONAVIRUS (COVID-19) RESPONSE
(MARTINEZ)
Discussion Only - No Report
STAFF REPORT
TYPE MEETING: Board Meeting MEETING DATE: April 1, 2020
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 Item to Update the Board on Budget
Considerations Related to the COVID-19 Emergency
GENERAL MANAGER’S RECOMMENDATION:
Informational item to communicate budget considerations related
to the COVID-19 emergency.
PURPOSE:
To communicate to the Board items being considered as part of
preparing the budget during the ongoing COVID-19 emergency.
DISCUSSION:
During the ongoing COVID-19 emergency staff has modified several
operational and administrative functions focused on continuing
to deliver safe and reliable water and wastewater services to
our customers, providing our employees with a safe work
environment, and taking actions to minimize community spread to
the public.
It is important to note that the duration and full economic
impact of this pandemic is still to be determined globally and
locally. New information and data are being communicated
constantly. This communication includes, but is not limited to,
contacts with suppliers, county, state, and federal agencies to
stay abreast of the ever-changing environment and available
resources. As information and data is communicated staff exams
the data’s potential positive or negative impact on the
District’s operations and finances.
AGENDA ITEM 10b
2
The effect of the COVID-19 emergency is significantly impacting
the current business operations of the District and the
financial environment from local to national levels. Based on
the information that is currently available, the resulting
economic environment may continue to impact the District into FY
2021. As staff prepares the FY 2021 budget for the upcoming
presentations to the Board in April and June, there are several
items being evaluated and monitored closely as the pandemic
continues. As the emergency unfolds staff will continue to
monitor the pandemic’s impacts on the District. The following
is a listing of the current areas staff has identified as
needing to be assessed as the emergency continues.
• Water Sales Considerations
o Water sales could decline as the economy moves into a
recession. In the short-term, water usage declines
appear to be more impacted by rainfall than by the
COVID-19 emergency. In the long-term a recession may
result in continued declines in water usage.
• Collectability
o Due to the moratorium on locking for non-payment,
staff is monitoring the aging weekly to evaluate the
degradation of collections and increased bad debt.
o In previous financial crises state agencies deferred
payments to the District. Staff is reviewing the
historic impact of the State’s deferrals.
• Property Tax 2008
o An emergency driven recession is expected to adversely
impact property valuations, which would result in a
decline in property tax revenues. Staff is reviewing
the impact of past recessions on property tax revenues
to evaluate what the impact may be on the upcoming
fiscal years.
• Operating Expenses
o CWA’s rate increase for January 1, 2021 is anticipated
to be provided to staff in April. CWA will be
presenting preliminary assumptions at the Member
Agency Finance Officers meeting on April 2 and a draft
rate is scheduled to be presented to CWA’s Board on
April 23. Staff had projected a 6% overall increase
in CWA water purchase rates. As CWA’s fiscal
sustainability taskforce continues to evaluate the CWA
rate structure and water sales fall short of budget,
3
water purchase rates could be impacted for CWA to
generate necessary revenues from member operations.
o MWD’s rate increase will be passed through CWA to
member agencies as well. CWA staff presented the
proposed MWD Rates and Charges to their Board last
month. Over calendar years 2021 and 2022 MWD’s
untreated rate is projected to increase 3.3%, while
the exchange costs related the QSA supplies are
increasing 10.8%. This is anticipated to impact CWA
rates to member agencies between 5% and 6%. In
addition, the Capacity Reservation charge, which is a
direct pass-through to CWA member agencies, is
expected to increase 27% and 12% on January 1, 2021
and January 1, 2022, respectively. This equates to an
increase of approximately $80,000 and $120,000 in
Otay’s FY’s 2021 and 2022, respectively.
o Due to the unknown duration of the emergency, staff is
examining the FY 2021 budget requests for savings
initiatives that could be utilized in the event the
emergency continues throughout FY 2021.
o If financial markets maintain current loss levels or
decline further, the District’s pension costs will
increase. Any increase related to recent market
losses would impact the FY 2022 budget.
• CIP
o Staff is evaluating the short-term impact of the
emergency on the current projects that may be delayed
to FY 2021. In addition, staff is evaluating the
ability to defer future projects and conserve capital
in the event the emergency continues throughout FY
2021. Conversely, staff is also identifying “shovel-
ready” projects should future stimulus funds be made
available to the District.
• Debt/State Revolving Funds
o The municipal debt market has experienced a bout of
inefficiency during this period. This inefficiency is
not new, the housing crisis triggered a similar
inefficiency. As of March 25, the Federal
Government’s actions, including purchasing municipal
debt, appear to have eased some of the markets
concerns.
o Staff is monitoring potential water funds that may be
made available through the Clean Water State Revolving
Fund and the Drinking Water State Revolving Fund.
4
• FEMA/CalOES
o Staff is monitoring internal costs related to COVID-19
and is working with FEMA/CalOES to file for financial
assistance. The District request for Financial
Assistance application should be completed and
submitted by March 28.
o Through March 23, the District has incurred
approximately $40,000 for materials, equipment, and
communication related purchases. Labor costs through
the same time period for preparing for COVID-19 was
approximately $72,000. Staff is monitoring costs
weekly.
o Staff is working with CalOES to determine which costs
will qualify for reimbursement.
• Grants
o Staff is monitoring possible grant opportunities and
evaluating projects to position the District to
qualify for grant funding as it becomes available.
Staff continues to evaluate these items and monitor the
environment for new items as they become known. Staff will be
evaluating the potential impact of these items over the next
week and will be bringing a more detailed and quantified
evaluation of the financial impact of these items to the Board
in the upcoming weeks.
The current environment is very dynamic. As all the items noted
above fluctuate and new items come to light, the District needs
to proceed cautiously knowing things can change.
FISCAL IMPACT: Joseph R. Beachem, Chief Financial Officer
None, as this is an informational item only.
STRATEGIC OUTLOOK:
The District ensures its continued financial health through
long-term financial planning and debt planning.
LEGAL IMPACT:
None.
Attachments: None
STAFF REPORT
TYPE MEETING:Regular Board MEETING DATE:April 1, 2020
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
ADMINISTRATIVE SERVICES:
GIS:
•Valve Segmentation – To optimize the District’s valve preventivemaintenance program, staff used GIS technology to identity high
priority valves based on the number and type of services. Alongwith Esri, staff developed a utility tool to generate a report of
high priority valves based on different criteria, includingmaintenance budget, amount of customer served in a specificlocation, and other functional scenarios. This valve segmentation
analysis is one of the first of its kind for an industry waternetwork.
Human Resources: •New Hires/Promotions/Recruitments:
o The new Engineering Manager will start on April 13.
o An internal candidate was selected for the Reclamation PlantSupervisor position.
o The District is recruiting for a Utility Services Manager, Lead
Reclamation Plant Operator, Utility Worker I/II, and anElectrician I/II.
IT Operations:
•EDEN Upgrade – Staff successfully performed a minor update to theDistrict’s Financial and Budgeting System, Tyler Eden. The update
provides minor enhancements and necessary patches associated withvarious Eden financial modules to include updates to new-year tax
AGENDA ITEM 11
2
codes, Accounts Payable (A/P) module, and Utility Billing (UB) service.
• Monthly Board Meeting Audio Streaming - During the District’s March Board meeting, 13 customers engaged in the listening of the live monthly meeting. The live audio broadcast was aired for 2 hours and
26 minutes. Purchasing & Facilities:
• Sanitizing Public and Common Areas - To reduce the transmission of COVID-19, seasonal cold, flu and other viruses among District staff
and the public, Facilities has directed janitorial staff to sanitize on a daily basis all door and restroom handles in public
and common areas of the Administration, Operations and Warehouse buildings. On a weekly basis, Facilities staff is thoroughly sanitizing all public and common areas to include kitchens, microwaves, door handles, handrails, light switches, restroom handles and flushers, elevator buttons, conference room
keyboards, mice, tables, etc. The extra effort began at the end of February and will continue through the active season and as
conditions warrant. Safety & Security:
• COVID-19:
o Have been maintaining staff informed since January 27, 2020 and will continue to share pertinent information as it becomes available from Centers for Disease Control, County Health Department, State Water Resource Control Board, California
Office of Emergency Services, California Department of Health, and the World Health Organization.
o Staff placed additional hand sanitizers (10 in addition to those
already in place) in strategic locations at both the
Administration and Operations buildings (conference rooms, areas
of public travel and concentration, etc).
o In preparation and with the goal of prevention, the following items are on-hand:
N-95 particulate respirator masks
Purell disinfectant (individual novelettes and 2-liter
bottles)
Nitrile gloves
Tyvek suits
Safety Googles
EOC basic emergency medical supplies
3
• Update -- America’s Water Infrastructure Act of 2018 (AWIA 2018) –
A presentation of the Risk and Resilience Assessment was presented to District stakeholders on March 11, 2020. The
completion/certification process is on target and will comply with the deadline of March 31, 2020.
• Safety Training and Medical Testing – All scheduled and future instructor-led and off-site safety training has been cancelled until further notice. This includes staff medical testing requiring a medical office visit. New dates will be provided in a future GM report.
• Board Room Active Shooter Risk Assessment – A risk assessment of the Board Room was conducted by The Lizardi Group on March 9, 2020.
A final report should be available in the next 2-3 weeks.
Finance:
• FY 2021 Budget Process – Staff from all departments are assisting
with the preparation of the FY 2021 Budget. The timing for
bringing the budget related items to the Board will be similar to
the FY 2020 process. The Economic Outlook Study will be presented
at the April Board meeting. A Board workshop is planned for late
April to present the CIP plan, sales volume assumptions, and other
major budget components. The final review of the budget and the
request for approval will be at the June Board meeting.
• Sewer Cost of Service Study – Staff is reviewing a draft of the Sewer Cost of Service Study prepared by HDR. The purpose of the
study is to examine alternative rate structures that will provide
for more stabilized revenue and rates as the sewer operation has
and will be issuing debt. Staff is looking at modifying the
structure to change from a one-year winter average to a multi-year
winter average for residential customers. The study and evaluation
of alternatives will be presented at the May Board meeting. Staff
will be requesting that the Board direct staff to incorporate the
recommended changes into the budget, and mail 218 notices to sewer
customers between July and August. The change to the rate
structure would be effective January 1, 2021.
• SDRMA Insurance Renewal – All pool participants of SDRMA were notified this week that rates will be increasing between 30% to
90%. The increase is due to catastrophic losses not only in the
state of California but globally. These catastrophic losses
include wildfires, natural disasters, and other catastrophic
events. The finance staff contacted other insurance pools and they
are also increasing their rates by more than 50% to 60%. Finance
has issued a notice of provisional withdrawal with SDRMA allowing
4
it to seek other quotations. A final decision to remain with SDRMA
or to join another insurance pool must be made by June 1st. This
item will be discussed in more detail during the budgetary
workshops.
• Suspension of Water Disconnections and Penalties – In response to
the COVID-19 Public Health Emergency, the District has suspended
the disconnection of customers’ water service on March 16th for an
indefinite period of time. On average, the District disconnects
approximately 250 customers monthly for non-payment. In addition,
on March 19th the District stopped charging late fees for delinquent
water bills. The District charges a 5% late penalty on delinquent
balances.
• COVID-19 Customer Calls – As of March 23rd, the District has
received 19 customer calls all related to financial concerns in
response to the COVID-19 emergency. Customers have expressed
concern about their ability to pay their water bills due to
financial hardship. Customer Service Representatives are working
with customers to ease their fears and assist them with payment
arrangements and extensions as needed.
Financial Reporting:
• The financial reporting for February 29, 2020 is as follows: o For the eighth month ending February 29, 2020, there are total
revenues of $70,069,873 and total expenses of $69,056,886. The revenues exceeded expenses by $1,012,987.
• The financial reporting for investments for February 29, 2020 is as follows:
o The market value shown in the Portfolio Summary and in the
Investment Portfolio Details as of February 29, 2020 total $74,911,986 with an average yield to maturity of 1.890%. The total earnings year-to-date are $953,873. 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). In March 2020, the station’s contractor Pacific Hydrotech completed
5
work to perform initial unwitnessed testing of the Station’s equipment and began witness testing. Pump Station start-up activities were also initiated. It is anticipated that start-up
activities for the Station will be completed in late April pending any delays resulting from COVID-19. Environmental compliance during
construction continues to be monitored by Helix Environmental. The project is within budget and the construction contract is scheduled to reach substantial completion in May 2020. (P2083 & P2562)
• Campo Road Sewer Replacement: The existing sanitary sewer from
Avocado Road to Singer Lane was undersized and located in environmentally sensitive areas that are difficult to access. The Campo Road Sewer Replacement project installed approximately 7,420
linear feet of new 15-inch gravity sewer pipe and includes abandonment of the existing sewer main. During the month of
March 2020, Wier construction worked on punch list items that were identified during the operational review and required for contract acceptance. The project is within budget. (S2024)
• Vista Vereda and Hidden Mesa Water Pipelines Replacement: The
existing 1950’s steel water line along Vista Vereda between Vista Grande Road and Hidden Mesa Trail in the Hillsdale area has experienced leaks and is nearing the end of its useful life. The
existing water main is located primarily within easements, many of which have had significant improvements performed over the years
since the water line was constructed. This project replaced the existing water lines with new water lines in both Vista Vereda and Hidden Mesa Road. During March 2020, the District’s construction
contractor Cass Arrietta Construction, Inc., worked on completing punch list items required for contract acceptance. This punch list
work includes securing releases for restoration work associated with a contractor caused cellular concrete spill that occurred in November 2019. This project is within budget. (P2574 & P2625)
• 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 redundant trailer vendor’s (Hawthorne) equipment builder subcontractor (Chillicothe
Metal Company located in Illinois) delivered the trailer on February 27, 2020 and is being stored at the Operations employee
parking lot until the District’s construction contractor Tharsos, Inc., is ready to complete the installation at the site. During February and March 2020, Tharsos completed structural cut-off walls,
slab, and retaining wall foundation. Tharsos’s construction contract also includes mechanical, electrical, instrumentation &
control, and installation of the trailer. It is anticipated that work on the project will be completed in June 2020. A change order in the amount of $57,133 was awarded to Tharsos for unrelated 1485-2 Pump Station diesel fuel remediation work (P1320, see project
6
description below). Expenses for 1485-2 Pump Station remediation work (P1320) and TLOPS (P2619) will be tracked separately. (P2619)
• 1485-2 Pump Station Diesel Fuel Leak: District staff, in coordination with the County of San Diego (County) Department of
Environmental Health and the Office of Emergency Services, completed remediation of diesel fuel on the neighboring resident’s property and the area on District property from where the leak
originated from June 5 through October 21, 2019. Staff solicited quotes to remediate the remainder of diesel fuel in the tight area at the rear of the site and awarded remaining work to Tharsos via a $57,133 change order to Tharsos’s TLOPS (P2619) construction contract. Expenses for 1485-2 Pump Station remediation work
(P1320) and TLOPS (P2619) will be tracked separately. (P1320-010000)
• 711-3 Reservoir Cover/Liner Replacement: The existing cover/liner at the 711-3 Reservoir was installed in 2002 and shows substantial
deterioration that has necessitated its replacement. On November 27, 2019, the 711-3 Reservoir was placed back into service
and obtained substantial completion of the construction contract. District staff and Layfield have finalized cost and time items required to close out the contract. A contract change order will be
considered at the April 1, 2020 Board meeting. A budget increase will also be requested as part of this change order. (P2561)
• 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 vendor’s (Cortech Engineering) shop drawings were approved for Cortech’s trailer builder subcontractor (PremierFlow) on December 5,
2019. Delivery of the trailer is anticipated in April 2020 timeframe. This project is within budget and on schedule. (P2640)
• 1200 Pressure Zone Improvements: The first phase of this project consists of connections for a Portable Trailer Mounted VFD Trailer
Pump (P2640) at the 1200-1 Pump Station/978-1 Reservoir site in support of the 1200-1 Reservoir Interior & Exterior Coating Project (CIP P2533) starting late fall. The first phase also includes demolition of an existing vault and widening of an existing driveway to provide access and a location to operate the trailer
pump. In February and March 2020, the District’s contractor, Piperin, continued work on construction contract submittals. This project is within budget and the first phase work is scheduled to complete in May 2020. (P2653)
7
• Dictionary Hill Water Line Replacement - 2019: This project
consists of constructing 1,250 linear feet of 8-inch polyvinyl chloride (PVC) water line and 60 linear feet of 12 PVC water line,
including appurtenances, rehabilitation of services, and surface restoration. The project combines three (3) CIPs in order to
create a larger bid package and evoke more interest from contractors. In order to avoid the County of San Diego’s large pavement restoration project, the CIPs had to be split into phases,
this project being Phase 1. LB Civil was awarded the contract by the Board as well as a budget increase of $500,000 to CIP P2609 at
the March 11, 2020 Board Meeting. The contractor is working on gathering the insurance documentation as well as permits from the County. The project is on schedule. (P2608, P2609, P2655)
• Hidden Mountain Sewage Pump Station Wet Well Renovation: This project will resolve septic conditions that exist at the pump station by eliminating dead storage areas below the pump operating level. The work will also add a sewer manhole to a segment of
gravity sewer that is inaccessible to CCTV equipment. The scope of work consists of installing concrete fill with a wastewater flow
channel in two (2) of the station wet wells, construction of a replacement sewer line between wet wells, new sewer manhole, appurtenances, and surface restoration. Kay Construction was
awarded the contract at the March 11, 2020 Board Meeting. The project is on schedule for completion by July 2020. (S2070)
• 850-2 & 978-1 Reservoir Coating Warranty Work: Recoating work on the 850-2 & 978-1 Reservoirs was completed in May 2018 by Blastco,
Inc. Per the contract documents, the warranty period for the project was two (2) years. A warranty dive inspection was
performed in June 2019, and the subsequent report identifying minor defects was forwarded to Blastco. A repair schedule was planned and on March 4, 2020, Blastco mobilized to the 978-1 site to begin
the repairs. The warranty work for the 978-1 Reservoir was completed on March 17, 2020 and the Reservoir was returned to
service on March 20, 2020. Blastco mobilized to the 850-2 Reservoir site on March 18, 2020 and repairs on that tank are expected to be completed by the end of March. (P2534 & P2544)
• Associated General Contractors of America San Diego Chapter: On
March 2, 2020, the San Diego Chapter of the Associated General Contractors (AGC) of America reached out to the District to discuss the AGC’s Best of the Best Public Owner recognition award. This
was a new category of awards for AGC in 2019 that has a goal of fostering partnering relationships between construction industry firms and public agencies. AGC staff offered to meet with the Otay Water District to share and discuss the summary results. District staff has reached out to AGC staff to accept the offer to meet and
8
has proposed meeting dates in March/April pending AGC staff availability.
• Salt Creek Area – Chula Vista Fire Dept. Training: Staff worked with Training staff from the Chula Vista Fire Department to arrange
for crews to participate in wildfire brush removal training exercises at the abandoned golf course. These exercises were originally scheduled for the first week of March, but were
postponed because of rain. They were scheduled for the third week of March, but were postponed again due to COVID-19. It is hoped
that the exercises will be able to be conducted in the fall of 2020.
• FY 2020 Sewage Flows to Metro vs Planned Capacity:
• For the month of February 2020, the District sold 46 meters (98.5
EDUs), generating $833,897 in revenue. Projection for this period was 102.6 meters (122 EDUs), with a budgeted revenue of $1,073,544.
Total revenue for Fiscal Year 2020 is $3,651,493 against the annual budget of $6,441,264.
9
Water System Operations (reporting for February):
• On Thursday, February 6th, staff performed an unplanned shutdown on
Explorations Falls Drive near the intersection of Hunte Parkway in Chula Vista due to a defective coupling on the 10-inch PVC mainline.
The shutdown lasted from 1:45 PM to 7:30 PM and no customers were affected.
• On Wednesday, February 12th, the Temporary Lower Otay Pump Station (TLOPS) was tested. The City of San Diego provided 1.05 MG or 3.21 AF during the test, reportable as an exchange via SDCWA’s
statement of deliveries. No issues were found and the station is ready to go in case it is needed.
• Utility Maintenance staff has inspected all Force Main air-vacs and found that air-vacs numbers 2 through 19 are in fair condition. Air-vac number 1 had a leak, which was replaced by District staff two (2) years prior to all other air-vacs. Engineering staff has amended
CIP AAR21XX03 and it is anticipated to have all air-vacs replaced with all stainless-steel materials rated for the pressures seen on this main. This work is expected to be completed late 2020 or early
2021. Utility Maintenance staff will complete periodic inspections of these air-vacs until they are replaced.
Purchases and Change Orders:
• The following table summarizes purchases and Change Orders issued
during the period from February 20 through March 16, 2020, that were within staff’s signatory authority:
Date Action Amount
Contractor/ Consultant Project
02/20/2020 P.O. $7,582.00 Pinnacle Business Solutions Three-Year Software License
03/16/2020 P.O. $59,009.08 SANGIS/County of
San Diego
Three-Year Imagery Consortium
Subscription Services
10
Water Conservation and Sales:
• Water Conservation - February 2020 usage was 8% higher than February
2013. Since February 2020, customers have saved an average of 15%
over 2013 levels.
•
• The February potable water purchases were 1,873 acre-feet which is
15.2% above the budget of 1,626 acre-feet. The cumulative purchases through February were 18,507 acre-feet which is 1.1% above the cumulative budget of 18,507 acre-feet.
11
• The February recycled water purchases and production were 83 acre-
feet which is 3.2% below the budget of 86 acre-feet. The cumulative production and purchases through February were 2,270
acre-feet which is 3.4% below the cumulative budget of 2,351 acre-feet.
• Potable, Recycled, and Sewer (Reporting up to the month of February):
• Total number of potable water meters: 50,990.
• Total number of sewer connections: 4,740.
• Recycled water consumption for the month of February: o Total consumption: 129.4 acre-feet or 42,157,280 gallons.
o Average daily consumption: 1,505,617 gallons per day. o Total cumulative recycled water consumption since February 1, 2019: 2,452 acre-feet. o Total number of recycled water meters: 736.
• Wastewater flows for the month of February: o Total basin flow: 1,626,366 gallons per day.
This is a decrease of 11.94 percent from February 2019. o Spring Valley Sanitation District flow to Metro: 539,551 gallons
per day.
12
o Total Otay flow: 1,086,759 gallons per day. o Flow processed at the Ralph W. Chapman Water Recycling Facility: 975,207 gallons per day.
o Flow to Metro from Otay Water District: 118,745 gallons per day.
• By the end of February there were 6,752 wastewater EDUs.
Exhibit A
Annual YTD
Budget Actual Budget Variance Var %
REVENUES:
4110 Potable Water Sales 52,353,600$ 34,089,768$ 34,223,000$ (133,232)$ (0.4%)
31-4118 Recycled Water Sales 9,816,800 6,309,846 6,550,400 (240,554) (3.7%)
4140 Potable Energy Charges 2,366,100 1,579,750 1,576,800 2,950 0.2%
4120 Potable System Charges 16,078,600 10,676,760 10,587,400 89,360 0.8%
4150 Potable MWD & CWA Fixed Charges 12,258,800 8,132,587 8,101,200 31,387 0.4%
4310 Potable Penalties 894,400 571,594 596,000 (24,406) (4.1%)
Total Water Sales 93,768,300 61,360,305 61,634,800 (274,495) (0.4%)
4210 Sewer Charges 2,890,000 1,981,077 1,973,000 8,077 0.4%
4133 Meter Fees 229,400 106,982 153,600 (46,618) (30.4%)
4136 Capacity Fee Revenues 1,868,900 1,430,946 1,245,600 185,346 14.9%
4414 Non-Operating Revenues 2,065,900 1,998,621 1,383,900 614,721 44.4%
4621 Tax Revenues 4,615,900 2,900,104 2,836,200 63,904 2.3%
4512 Interest 367,900 291,838 245,600 46,238 18.8%
Total Revenues 105,806,300$ 70,069,873$ 69,472,700$ 597,173$0.9%
EXPENSES:
5511 Potable Water Purchases 37,282,800$ 24,480,020$ 24,249,500$ (230,520)$ (1.0%)
5515 Recycled Water Purchases 4,058,400 2,762,700 2,762,700 - 0.0%
5523 CWA-Infrastructure Access Charge 2,380,800 1,503,450 1,503,600 150 0.0%
5521 CWA-Customer Service Charge 1,659,600 1,091,684 1,092,000 316 0.0%
5524 CWA-Reliability Charge 2,377,200 1,496,497 1,496,400 (97) (0.0%)
5522 CWA-Emergency Storage Charge 4,579,800 3,014,270 3,014,200 (70) (0.0%)
5531 MWD-Capacity Res Charge 606,600 410,747 411,000 253 0.1%
5532 MWD-Readiness to Serve Charge 870,000 527,635 606,000 78,365 12.9%
Subtotal Water Purchases 53,815,200 35,287,003 35,135,400 (151,603) (0.4%)
5411 Power Charges 3,184,700 2,109,283 2,095,800 (13,483)(0.6%)
Payroll & Related Costs 21,157,700 13,542,005 13,733,600 191,595 1.4%
Material & Maintenance 3,834,100 2,228,231 2,428,916 200,685 8.3%
Administrative Expenses 5,713,800 3,714,718 3,882,632 167,914 4.3%
5251 Legal Fees 620,000 521,646 413,333 (108,313) (26.2%)
Expansion Reserve 4,927,300 3,284,900 3,284,900 - 0.0%
Replacement Reserve 7,513,000 5,008,700 5,008,700 - 0.0%
OPEB Trust 1,038,100 692,100 692,100 - 0.0%
General Fund Reserve 954,400 636,300 636,300 - 0.0%
Total Expenses 105,806,300$ 69,056,886$ 69,343,681$ 286,795$0.4%
EXCESS REVENUES(EXPENSE)-$1,012,987$ 129,019$ 883,968$
OTAY WATER DISTRICT
COMPARATIVE BUDGET SUMMARY
FOR THE EIGHT MONTHS ENDED FEBRUARY 29, 2020
F:/MORPT/FS2020-0220.xlsx 3/23/2020 1:54 PM
COMPARATIVE BUDGET SUMMARY
NET REVENUES AND EXPENSES
FOR THE EIGHT MONTHS ENDED FEBRUARY 29, 2020
‐$1,300,000
‐$1,100,000
‐$900,000
‐$700,000
‐$500,000
‐$300,000
‐$100,000
$100,000
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
$1,500,000
$1,700,000
$1,900,000
$2,100,000
$2,300,000
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 $883,968.
Check Total
1,872.64
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
2053894 02/26/20 15416 24 HOUR ELEVATOR INC 77968 01/29/20 ELEVATOR LOAD TEST 3,600.00 3,600.00
2053928 03/04/20 20069 ABED KEDDO Ref002581843 03/02/20 UB Refund Cst #0000259626 1,755.62 1,755.62
2053895 02/26/20 18122 ACC BUSINESS 200161466 01/27/20 INTERNET CIRCUIT SVCS (JAN 2020)1,013.64 1,013.64
2053992 03/18/20 18122 ACC BUSINESS 200471812 02/27/20 INTERNET CIRCUIT SVCS (FEB 2020)1,013.64 1,013.64
2053896 02/26/20 02071 ACCOUNTEMPS 55265519 02/04/20 TEMPORARY LABOR - CUSTOMER SERVICE 936.32
55226942 01/29/20 TEMPORARY LABOR - CUSTOMER SERVICE 936.32
2053960 03/11/20 17989 ADS CORP 22446.22-0220 02/22/20 ADS FLOW MONITORING 675.00 675.00
2053961 03/11/20 15024 AIRX UTILITY SURVEYORS INC 2401312020 02/12/20 AS-NEEDED UTILITY LOCATING (JAN 2020)19,430.00 19,430.00
2053993 03/18/20 20081 AJX HOMES LLC Ref002581947 03/16/20 UB Refund Cst #0000257764 37.85 37.85
2053994 03/18/20 20071 ANDERSON CATERING SERVICES 20204 02/11/20 PUBLIC RECOGNITION AND AWARDS 288.00 288.00
2053929 03/04/20 20057 ARLENE YPILAN Ref002581830 03/02/20 UB Refund Cst #0000042513 105.31 105.31
2053930 03/04/20 17264 ARTIANO SHINOFF ABED 303264 02/19/20 PROFESSIONAL SERVICES (THRU 1/31/2020)55,688.99 55,688.99
2053897 02/26/20 07785 AT&T 000014164065 01/12/20 TELEPHONE SVCS (12/12/19 - 1/11/20)4,492.66 4,492.66
2053995 03/18/20 07785 AT&T 00014306034 02/12/20 TELEPHONE SVCS (1/12/2020 - 02/11/2020)4,381.39 4,381.39
2053927 03/04/20 18103 BASIL HAMAMA Ref002581831 03/02/20 UB Refund Cst #0000060635 84.66 84.66
2053962 03/11/20 19360 BLANCA SOTELO 2969030920 03/09/20 CUSTOMER REFUND 71.94 71.94
2053931 03/04/20 20068 BROOKFIELD RESIDENTIAL Ref002581842 03/02/20 UB Refund Cst #0000257010 322.24 322.24
2053932 03/04/20 08156 BROWNSTEIN HYATT FARBER 792285 02/28/20 LEGISLATIVE ADVOCACY CONSULT SERV 13,394.19 13,394.19
2053933 03/04/20 20067 BRYANT MCMULLEN Ref002581841 03/02/20 UB Refund Cst #0000252791 60.51 60.51
2053898 02/26/20 14112 BSE ENGINEERING INC 754101708 01/31/20 ELECTRICAL DESIGN (JAN 2020)626.00 626.00
2053963 03/11/20 01243 CALIFORNIA-NEVADA SECTION 02104030520 03/05/20 LICENSE RENEWAL 80.00 80.00
2053934 03/04/20 04071 CAPITOL WEBWORKS LLC 30179 02/28/20 OUTSIDE SERVICES 45.00 45.00
2053964 03/11/20 00848 CASS CONSTRUCTION INC 2400022420 02/24/20 CUSTOMER REFUND 2,046.00 2,046.00
2053965 03/11/20 15800 CHAN, SIU MAN POLLY PC030920 03/09/20 TUITION REIMBURSEMENT 748.82 748.82
2053996 03/18/20 02026 CHULA VISTA ELEM SCHOOL DIST AR051383 01/31/20 OUTSIDE SERVICES 433.16 433.16
2053997 03/18/20 00234 CITY TREASURER 4460123119 03/09/20 RECLAIMED WATER BASE FEE (DEC 2019)1,333.75
Page 1 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
4,001.25
384.00
12,925.16
9,669.66
325.84
4460013120 03/09/20 RECLAIMED WATER BASE FEE (JAN 2020)1,333.75
4460022820 03/09/20 RECLAIMED WATER BASE FEE (FEB 2020)1,333.75
2053899 02/26/20 04119 CLARKSON LAB & SUPPLY INC 14982 01/31/20 BACTERIOLOGICAL TESTING (1/27/20)178.00
14983 01/31/20 BACTERIOLOGICAL TESTING (1/9/20)178.00
14984 01/31/20 BACTERIOLOGICAL TESTING (1/9/20)28.00
2053900 02/26/20 18331 CORE & MAIN LP L861281 02/06/20 INVENTORY 4,592.31
L842586 01/30/20 INVENTORY 4,339.63
L888003 02/07/20 INVENTORY 3,993.22
2053966 03/11/20 05622 CORRPRO COMPANIES INC 591328 02/13/20 CORROSION SERVICES (11/30/19-2/13/20)1,690.00 1,690.00
2053998 03/18/20 20084 CORY BENDER Ref002581950 03/16/20 UB Refund Cst #0000259436 1,462.81 1,462.81
2053901 02/26/20 02612 COUNCIL OF WATER UTILITIES 02182020 02/19/20 BUSINESS MEETING 80.00 80.00
2053902 02/26/20 00099 COUNTY OF SAN DIEGO DPWAR0120 02/10/20 EXCAVATION PERMIT (JAN 2020)3,425.00 3,425.00
2053967 03/11/20 02122 COUNTY OF SAN DIEGO RI2020 01/08/20 PERMIT FEES # 01214 (MAR 2020-MAR 2021)460.00 460.00
2053968 03/11/20 08479 COUNTY OF SAN DIEGO FY1819OWD 02/14/20 O & M CAPITAL REPLACEMENT (FY 2018-2019)200,723.87 200,723.87
2053935 03/04/20 20064 CPR MAPLE ESPLANADE OWNER LLC Ref002581838 03/02/20 UB Refund Cst #0000241691 1,584.80 1,584.80
2053903 02/26/20 00693 CSDA - SAN DIEGO CHAPTER 02202020 02/19/20 BUSINESS MEETING 120.00 120.00
2053904 02/26/20 11797 D&H WATER SYSTEMS INC I 2020-0103 02/03/20 RCS TRAILER/WATER MIX - 944-2 RESERVOIR 6,465.00 6,465.00
2053999 03/18/20 20080 DAWN TAUSAGA Ref002581946 03/16/20 UB Refund Cst #0000230227 246.31 246.31
2053936 03/04/20 20056 DEBORAH RICHARDS Ref002581829 03/02/20 UB Refund Cst #0000038706 28.44 28.44
2053937 03/04/20 20061 DERSTEPANIAN VOLGA TRUST Ref002581835 03/02/20 UB Refund Cst #0000206958 42.57 42.57
2053938 03/04/20 20062 DRI MAPLE MILLENIA LLC Ref002581836 03/02/20 UB Refund Cst #0000230320 719.64 719.64
2054000 03/18/20 20076 ERNESTO SUFFY Ref002581942 03/16/20 UB Refund Cst #0000035418 106.02 106.02
2053969 03/11/20 03546 FERGUSON WATERWORKS # 1083 0706689 02/13/20 INVENTORY 8,052.29
0706689-1 02/18/20 INVENTORY 1,617.37
2053905 02/26/20 17888 FIRST AMERICAN DATA TREE LLC 9003400120 01/31/20 DOCUMENT SERVICE (MONTHLY)99.00 99.00
2053906 02/26/20 02591 FITNESS TECH 11572 02/01/20 GYM EQUIPMENT MAINTENANCE 135.00 135.00
2053970 03/11/20 11962 FLEETWASH INC 1820822 02/21/20 FLEET WASH SERVICES 201.14
1803852 01/31/20 FLEET WASH SERVICES 124.70
Page 2 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
291.62
3,190.01
3,496.24
2054001 03/18/20 11962 FLEETWASH INC 1810451 02/07/20 FLEET WASH SERVICES 187.15
1814892 02/14/20 FLEET WASH SERVICES 104.47
2053940 03/04/20 19768 FRANCHISE TAX BOARD Ben2581867 03/05/20 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00
2053939 03/04/20 19640 FRANCHISE TAX BOARD Ben2581865 03/05/20 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00
2054002 03/18/20 19640 FRANCHISE TAX BOARD Ben2582785 03/19/20 BI-WEEKLY PAYROLL DEDUCTION 75.00 75.00
2054003 03/18/20 19768 FRANCHISE TAX BOARD Ben2582787 03/19/20 BI-WEEKLY PAYROLL DEDUCTION 125.00 125.00
2054004 03/18/20 13563 FRIENDS OF THE WATER ED 2173 03/09/20 WATER CONSERVATION GARDEN TOURS 3,040.00 3,040.00
2054005 03/18/20 03094 FULLCOURT PRESS 36594 02/28/20 PRINTING QUARTERLY NEWSLETTERS 3,274.25 3,274.25
2054006 03/18/20 17855 GASTELUM, HECTOR 020120022820 02/29/20 MILEAGE REIMBURSEMENT (FEB 2020)146.05 146.05
2053941 03/04/20 20054 GENE SILLON 375030220 03/02/20 CUSTOMER REFUND 100.00 100.00
2053942 03/04/20 20066 GEOFFREY GREY Ref002581840 03/02/20 UB Refund Cst #0000251913 45.24 45.24
2053943 03/04/20 20065 GHADIR NAFSO Ref002581839 03/02/20 UB Refund Cst #0000242388 17.38 17.38
2054007 03/18/20 20083 GINA ARREOLA Ref002581949 03/16/20 UB Refund Cst #0000259375 39.06 39.06
2053944 03/04/20 20059 GRAY WHALE LLC Ref002581833 03/02/20 UB Refund Cst #0000206057 80.25 80.25
2053907 02/26/20 12907 GREENRIDGE LANDSCAPE INC 19085 01/29/20 LANDSCAPING SERVICES 344.06 344.06
2053908 02/26/20 19978 HASA INC.65481 CREDIT MEMO -78.65
654482 CREDIT MEMO -4.97
672061 02/06/20 AS-NEEDED SODIUM HYPOCHLORITE 1,212.64
671131 01/30/20 AS-NEEDED SODIUM HYPOCHLORITE 996.32
672060 02/06/20 AS-NEEDED SODIUM HYPOCHLORITE 994.15
671132 01/30/20 AS-NEEDED SODIUM HYPOCHLORITE 70.52
2053971 03/11/20 19978 HASA INC.673170 02/19/20 AS-NEEDED SODIUM HYPOCHLORITE 1,190.79
673277 02/20/20 AS-NEEDED SODIUM HYPOCHLORITE 819.35
673276 02/20/20 AS-NEEDED SODIUM HYPOCHLORITE 655.48
672541 02/13/20 AS-NEEDED SODIUM HYPOCHLORITE 600.86
672062 02/18/20 AS-NEEDED SODIUM HYPOCHLORITE 82.28
672540 02/13/20 AS-NEEDED SODIUM HYPOCHLORITE 76.47
673272 02/20/20 AS-NEEDED SODIUM HYPOCHLORITE 71.01
2053972 03/11/20 18436 HAZEN AND SAWYER DPC 200940033 02/19/20 ASSET MANAGEMENT SVCS (1/1/20-1/31/20)2,260.00
Page 3 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
4,020.00
8,431.25
100.96
48,128.14
7,912.13
200940029 02/13/20 POTABLE PIPE REPLACE (12/1/19-1/31/20)1,760.00
2053973 03/11/20 19825 HDR ENGINEERING INC 1200248668 02/17/20 CAPACITY FEE STUDY 7,157.50
1200248677 02/17/20 SEWER COST OF SERVICE STUDY UPDATE 1,273.75
2053974 03/11/20 02008 HELIX ENVIRONMENTAL 100563 02/24/20 AS-NEEDED ENVIRO (ENDING 2/16/20)2,243.75 2,243.75
2053945 03/04/20 00062 HELIX WATER DISTRICT 243300021120 02/11/20 WATER USAGE (12/6/19 - 2/6/20)50.48
25428321120 02/11/20 WATER USAGE (12/6/19 - 2/6/20)50.48
2054008 03/18/20 20079 HENSEL PHELPS Ref002581945 03/16/20 UB Refund Cst #0000224919 1,844.37 1,844.37
2053975 03/11/20 13349 HUNSAKER & ASSOCIATES 2020010012 02/18/20 LAND SURVEYING SERVICES (1/1/20-1/31/20)800.00 800.00
2053976 03/11/20 15622 ICF JONES & STOKES INC 0144817 02/13/20 SAN MIGUEL HMA (1/1/20-1/31/20)40,482.72
0144811 02/13/20 AS-NEEDED ENVIRONMENTAL (1/1/20-1/31/20)3,620.50
0144810 02/13/20 AS-NEEDED ENVIRONMENTAL (1/1/20-1/31/20)2,608.39
0144803 02/13/20 AS-NEEDED ENVIRONMENTAL (1/1/20-1/31/20)872.00
0144802 02/13/20 AS-NEEDED ENVIRONMENTAL (1/1/20-1/31/20)544.53
2054009 03/18/20 20085 INDEPTH ENVIROMENTAL INC Ref002581951 03/16/20 UB Refund Cst #0000259491 1,402.43 1,402.43
2053909 02/26/20 17816 INDUSTRIAL SCIENTIFIC CORP 2289238 01/31/20 GAS DETECTION PROGRAM 855.43 855.43
2053977 03/11/20 17816 INDUSTRIAL SCIENTIFIC CORP 2296139 02/12/20 GAS DETECTION PROGRAM 316.93 316.93
2053910 02/26/20 08969 INFOSEND INC 166781 01/31/20 BILL PROCESSING SERVICES 4,274.98
167172 02/03/20 BILL PROCESSING SERVICES 2,473.99
166780 01/31/20 BILL PROCESSING SERVICES 1,163.16
2053978 03/11/20 15368 INTEGRITY MUNICIPAL SYSTEMS 9301 02/14/20 SCRUBBER CHECK VALVES 4,584.62 4,584.62
2054010 03/18/20 20077 JAMES CURRY Ref002581943 03/16/20 UB Refund Cst #0000163717 40.24 40.24
2053946 03/04/20 20055 JAMES FLORES Ref002581828 03/02/20 UB Refund Cst #0000024674 29.60 29.60
2053911 02/26/20 10563 JCI JONES CHEMICALS INC 812466 01/30/20 AS-NEEDED CHLORINE GAS 5,450.40 5,450.40
2053947 03/04/20 20058 KAREN FORSTOT Ref002581832 03/02/20 UB Refund Cst #0000090449 14.81 14.81
2053948 03/04/20 20063 KENNETH DANNER Ref002581837 03/02/20 UB Refund Cst #0000240582 64.97 64.97
2053949 03/04/20 20060 KHALIL ABDULLAH Ref002581834 03/02/20 UB Refund Cst #0000206092 7.42 7.42
2054011 03/18/20 12276 KONECRANES INC 154264632 02/26/20 CRANE INSPECTIONS 768.75 768.75
2053912 02/26/20 20053 KRISTINA GRANT 6222022020 02/20/20 CUSTOMER REFUND 173.64 173.64
2053979 03/11/20 04863 KRISTINE SKOGLIN 9176030920 03/09/20 CUSTOMER REFUND 50.00 50.00Page 4 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
155,328.56
2053979 03/11/20 04863 KRISTINE SKOGLIN 9176030920 03/09/20 CUSTOMER REFUND 50.00 50.00
2053980 03/11/20 20074 LYN CORBETT 9921030920 03/09/20 CUSTOMER REFUND 36.24 36.24
2054012 03/18/20 18905 M RAE ENGINEERING INC 00018251B 03/11/20 RETAINAGE RELEASE 1,350.00 1,350.00
2053981 03/11/20 20073 MICHAEL CAIAZZO 5816030920 03/09/20 CUSTOMER REFUND 253.06 253.06
2054013 03/18/20 20078 MIRNA RIVERA Ref002581944 03/16/20 UB Refund Cst #0000217871 309.80 309.80
2053913 02/26/20 18332 NV5 INC 151131 02/03/20 ENGINEERING DESIGN (DEC 2019)14,383.75 14,383.75
2053914 02/26/20 19636 OT ELECTRIC 10057 01/31/20 BOARD ROOM AV ELECTRICAL WORK 900.00 900.00
2053950 03/04/20 17527 OTERO, TENILLE 022520022620 02/26/20 EXPENSE REIMBURSEMENT 420.04 420.04
2053915 02/26/20 06646 PACIFIC HYDROTECH CORPORATION 2601312020 02/06/20 870-2 PS REPLACEMENT (ENDING 1/31/20)84,793.20 84,793.20
2053916 02/26/20 01002 PACIFIC PIPELINE SUPPLY INC S100412614.001 02/10/20 INVENTORY 1,656.12 1,656.12
2053917 02/26/20 18562 PACIFIC WESTERN BANK 2601312020 02/06/20 RET/PACIFIC HYDRO A#7533 (ENDING 1/31/20)4,462.80 4,462.80
2053982 03/11/20 19310 PALM LAUNDRY INC OWD014 02/26/20 TOWEL LAUNDRY SERVICE 246.46 246.46
2053951 03/04/20 00137 PETTY CASH CUSTODIAN 030220 03/02/20 PETTY CASH REIMBURSEMENT (MAR 2020)1,125.78 1,125.78
2054014 03/18/20 15081 PINOMAKI DESIGN 5944 03/02/20 GRAPHIC DESIGN SERVICES 425.00 425.00
2053918 02/26/20 19896 PIPERIN CORPORATION 101312020 01/31/20 1200 PRESSURE ZONE IMPROVE (JAN 2020)2,850.00 2,850.00
2053952 03/04/20 01409 PUMP CHECK 7859 02/05/20 PUMP EFFICIENCY TESTING 9,870.00 9,870.00
2053919 02/26/20 15647 RFYEAGER ENGINEERING LLC 20025 02/03/20 CORROSION SERVICES (JAN 2020)3,665.00 3,665.00
2053959 03/11/20 19641 ROSEMARY CANNON 0425030920 03/09/20 CUSTOMER REFUND 190.00 190.00
2054015 03/18/20 02586 SAN DIEGO COUNTY ASSESSOR 202000211 03/04/20 ASSESSOR DATA (MONTHLY)125.00 125.00
2053920 02/26/20 00121 SAN DIEGO GAS & ELECTRIC 021920 02/19/20 UTILITY EXPENSES (MONTHLY)220.26 220.26
2053954 03/04/20 20070 SAN DIEGO GAS & ELECTRIC Ref002581844 03/02/20 UB Refund Cst #0000259691 1,519.45 1,519.45
2053953 03/04/20 00121 SAN DIEGO GAS & ELECTRIC 022720 02/27/20 UTILITY EXPENSES (MONTHLY)87,817.48
022620 02/26/20 UTILITY EXPENSES (MONTHLY)29,031.74
022020 02/20/20 UTILITY EXPENSES (MONTHLY)19,387.30
6157022020 02/20/20 UTILITY EXPENSES (MONTHLY)9,644.03
022520 02/25/20 UTILITY EXPENSES (MONTHLY)8,618.35
022520A 02/25/20 UTILITY EXPENSES (MONTHLY)829.66
2053983 03/11/20 00121 SAN DIEGO GAS & ELECTRIC 030520 03/05/20 UTILITY EXPENSES (MONTHLY)87,371.83
Page 5 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
111,079.87
18,746.69
9,560.00
1,063.50
578.33
2053983 03/11/20 00121 SAN DIEGO GAS & ELECTRIC 030520 03/05/20 UTILITY EXPENSES (MONTHLY)87,371.83
022820 03/09/20 UTILITY EXPENSES (MONTHLY)23,655.91
022820A 02/28/20 UTILITY EXPENSES (MONTHLY)52.13
2054016 03/18/20 00121 SAN DIEGO GAS & ELECTRIC 031020 03/10/20 UTILITY EXPENSES (MONTHLY)624.35 624.35
2054017 03/18/20 17840 SANGIS / COUNTY OF SAN DIEGO SAN807 02/27/20 IMAGERY CONSORTIUM SUBSCRIPTION SVCS 19,669.69 19,669.69
2053921 02/26/20 07783 SCRIPPS CTR FOR EXECUTIVE HLTH 32033 01/31/20 EXECUTIVE PHYSICAL (JAN 2020)2,051.78 2,051.78
2053955 03/04/20 16229 SMITH, TIMOTHY 010120022920 02/29/20 EXPENSE REIMBURSEMENT 30.67 30.67
2054018 03/18/20 05755 STATE WATER RESOURCES 30119031202 03/12/20 LICENSE RENEWAL 60.00 60.00
2053956 03/04/20 15974 SUN LIFE FINANCIAL 38166020120 02/27/20 LIFE INSURANCE AND STD/LTD (FEB 2020)9,984.63 9,984.63
2053984 03/11/20 10339 SUPREME OIL COMPANY 479824 02/05/20 UNLEADED FUEL & DIESEL 11,433.19
479862 02/05/20 UNLEADED FUEL & DIESEL 7,313.50
2053922 02/26/20 18376 SVPR COMMUNICATIONS 1333 01/31/20 COMMUNICATION CONSULTANT 2,500.00 2,500.00
2053923 02/26/20 17704 T&T JANITORIAL INC 2018-5992 01/31/20 JANITORIAL SERVICES (JAN 2020)4,780.00
2018-5954 12/31/19 JANITORIAL SERVICES (DEC 2019)4,780.00
2054019 03/18/20 20082 TELLIARD CONSTRUCTION Ref002581948 03/16/20 UB Refund Cst #0000258511 1,970.39 1,970.39
2053985 03/11/20 19272 THARSOS INC 201312020 02/03/20 TLOPS REDUNDANCY PROJ (ENDING 1/31/20)88,144.32 88,144.32
2054020 03/18/20 14177 THOMPSON, MITCHELL 020120022820 02/28/20 MILEAGE REIMBURSEMENT (FEB 2020)70.15 70.15
2053986 03/11/20 20072 TRACY RISLEY 6018030920 03/09/20 CUSTOMER REFUND 374.45 374.45
2054021 03/18/20 19897 TRUE NORTH RESEARCH 2508 02/04/20 CUSTOMER OPINION SURVEY 38,585.00 38,585.00
2053924 02/26/20 00427 UNDERGROUND SERVICE ALERT 120200504 02/01/20 UNDERGROUND ALERTS (MONTHLY)585.85
dsb20190379 02/01/20 DIG SAFE BOARD FEES (MONTHLY)477.65
2053957 03/04/20 15675 UNITED SITE SERVICES INC 114-9862944 02/10/20 PORT. TOILET RENTAL 79.96 79.96
2053987 03/11/20 15675 UNITED SITE SERVICES INC 114-9889218 02/14/20 PORT. TOILET RENTAL 392.58
114-9889105 02/14/20 PORT. TOILET RENTAL 98.25
114-9889102 02/14/20 PORT. TOILET RENTAL 87.50
2054023 03/18/20 08402 US POSTMASTER OWD-11950P 03/18/20 PRINTING 8,822.27 8,822.27
2053988 03/11/20 19895 VOLVO CONSTRUCTION EQUIPMENT N501001033 02/21/20 PORTABLE EMERGENCY GENERATOR 145,042.20 145,042.20
2053989 03/11/20 15807 WATCHLIGHT CORPORATION 660215 02/15/20 SECURITY ALARM MONITORING 2,532.92 2,532.92
Page 6 of 7
Check Total
CHECK REGISTER
Otay Water District
Date Range: 2/20/2020 - 3/18/2020
Check #Date Vendor # Vendor Name Invoice Inv. Date Description Amount
2053925 02/26/20 15726 WATER SYSTEMS CONSULTING INC 4418 01/31/20 HYDRAULIC MODELING (ENDING 1/31/20)3,437.50 3,437.50
2053958 03/04/20 01343 WE GOT YA PEST CONTROL INC 29165 12/21/19 AS-NEEDED BEE REMOVAL SVCS 125.00 125.00
2053990 03/11/20 01343 WE GOT YA PEST CONTROL INC 30685 02/13/20 AS-NEEDED BEE REMOVAL SVCS 125.00 125.00
2053926 02/26/20 08023 WORKTERRA 0095773 01/31/20 EMPLOYEE BENEFITS (JAN 2020)772.50
2054022 03/18/20 08023 WORKTERRA 0096138 02/28/20
03/11/20 19386 ZOHO CORPORATION 2250949 01/30/20
772.50
EMPLOYEE BENEFITS (FEB 2020)772.50 772.50
SOFTWARE LICENSE 2,602.00 2,602.00
Amount Pd Total:1,212,201.82
Check Grand Total:1,212,201.82
2053991
Page 7 of 7