HomeMy WebLinkAbout12-09-19 F&A Committee Packet1
OTAY WATER DISTRICT
FINANCE AND ADMINISTRATION
COMMITTEE MEETING
and
SPECIAL MEETING OF THE BOARD OF DIRECTORS
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
BOARDROOM
MONDAY
December 9, 2019
12:30 P.M.
This is a District Committee meeting. This meeting is being posted as a special meeting
in order to comply with the Brown Act (Government Code Section §54954.2) in the event that
a quorum of the Board is present. Items will be deliberated, however, no formal board actions
will be taken at this meeting. The committee makes recommendations
to the full board for its consideration and formal action.
AGENDA
1.ROLL CALL
2.PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-
RISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
DISCUSSION ITEMS
3.APPROVE AN ENGAGEMENT LETTER WITH THE AUDITING FIRM OF TEAMAN,
RAMIREZ AND SMITH, INC., TO PROVIDE AUDIT SERVICES TO THE DISTRICT
FOR THE FISCAL YEAR ENDING JUNE 30, 2020 (DYCHITAN) [5 minutes]
4.ADOPT RESOLUTION NO. 4374 REAPPOINTING TIMOTHY SMITH AS THE OTAY
WATER DISTRICT’S SECOND REPRESENTATIVE ON THE BOARD OF
DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (WATTON)
[5 minutes]
5.ADOPT RESOLUTION NO. 4375 AMENDING SECTION 6, DIRECTOR’S
RESPONSIBILITY, OF THE BOARD OF DIRECTORS POLICY NO. 8, DIRECTORS
COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE
BENEFITS, WITH REGARD TO THE REPORTING OF MEETINGS ATTENDED AT
THE EXPENSE OF THE DISTRICT AT THE NEXT REGULAR MEETING OF THE
BOARD OF DIRECTORS AS REQUIRED BY STATE STATUTE [GOVERNMENT
CODE SECTION 53232.3 (d)] (WATTON) [5 minutes]
2
6. APPROVE THE NOVEMBER 26, 2019 PURCHASE AGREEMENT FOR $220,000
FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND
AUTHORIZE THE GENERAL MANAGER TO ENTER INTO ESCROW TO
COMPLETE THE SALE OF THE PROPERTY (KENNEDY) [5 minutes]
7. AWARD A CONTRACT TO WESTERN AV IN AN AMOUNT NOT-TO-EXCEED
$153,142.34 FOR THE DISTRICT’S BOARDROOM AUDIO-VISUAL UPGRADE
PROJECT (KERR) [5 minutes]
8. APPROVE A PURCHASE ORDER TO ALTEC INDUSTRIES IN AN AMOUNT NOT-
TO-EXCEED $122,112.40 FOR THE PURCHASE OF ONE (1) CLASS 5 FORD F-550
TRUCK WITH UTILITY BODY AND ALTEC AT40G FORTY-FIVE (45) FOOT
PERSONAL BUCKET LIFT (MARTINEZ) [5 minutes]
9. ADJOURNMENT
BOARD MEMBERS ATTENDING:
Mitch Thompson, Chair
Mark Robak
All items appearing on this agenda, whether or not expressly listed for action, may be delib-
erated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the Dis-
trict’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 par-
ticipate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior
to the meeting.
Certification of Posting
I certify that on December December 6, 2019 I posted a copy of the foregoing agenda
near the regular meeting place of the Board of Directors of Otay Water District, said time be-
ing at least 24 hours in advance of the meeting of the Board of Directors (Government Code
Section §54954.2).
Executed at Spring Valley, California on December 6, 2019.
/s/ Susan Cruz, District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Marissa Dychitan, Sr Accountant PROJECT: DIV. NO.All
APPROVED BY: Eid Fakhouri, Finance Manager
Kevin Koeppen, Assistant Chief Financial Officer
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Appointment of Auditor for Fiscal Year Ending June 30, 2020
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to sign the engagement
letters from the auditing firm of Teaman, Ramirez & Smith, Inc., to
contract for audit services for fiscal year ending June 30, 2020.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
The District is required to retain the services of an independent
accounting firm to perform an audit of the District’s financial
records each year.
ANALYSIS:
At the Board meeting on November 7, 2018, the Board approved
extending the District’s contract for auditing services with Teaman,
Ramirez & Smith, Inc. for one year, plus an optional second year,
subject to Board review and approval.
Staff is recommending the Board approve the appointment of Teaman,
Ramirez & Smith, Inc. as the District’s auditors for the optional
second year, which will be the FY 2020 audit. This recommendation is
based on their staff’s knowledge of the District’s operations and
finances, their technical qualifications, and their performance as
the District’s auditors during the previous six (6) fiscal years.
AGENDA ITEM 3
As part of the 2018 extension and optional year, the District
requested that the partner in charge of the audit be rotated to
another partner of the firm to provide for a fresh perspective on the
District’s audit. To comply with the District’s request, Mr. Joshua
Calhoun replaced Mr. Richard Teaman as the partner in charge of the
District’s FY 2019 audit and Mr. Calhoun will remain as the partner
in charge for the FY 2020 audit.
The audit will consist of four major components: 1) Standard audit
services, to provide an audit opinion on the District’s financial
statements; 2) Agreed upon procedures related to the District’s
Investment Policy procedures, to issue a report on staff’s compliance
with District policy; 3) A State Controllers Report, required by the
State of California; and 4) Assistance in preparation of the
District’s Comprehensive Annual Financial Report (CAFR).
The following is a tentative planning schedule for the major
activities involved in completing the FY 2020 financial audit:
➢ May-2020: Pre-audit fieldwork (3–4 days).
➢ Aug-2020: Year-end audit fieldwork (4–5 days).
➢ Nov-2020: Board presentation of the audited financial statements.
➢ Dec-2020: CAFR submission to Government Finance Officers
Association (GFOA).
FISCAL IMPACT:
The fee for auditing services for the fiscal year ending June 30,
2020, will be $29,500. This is an increase of $500 over the prior
year’s fee.
STRATEGIC GOAL:
The District ensures its continued financial health through long-term
financial planning, formalized financial policies, enhanced budget
controls, fair pricing, debt planning, and improved financial
reporting.
LEGAL IMPACT:
Required by law.
Attachments: A) Committee Action Form
B) Audit Engagement Letter
C) State Controllers Report Engagement Letter
D) Agreed Upon Procedures Engagement Letter
ATTACHMENT A
SUBJECT/PROJECT:
Appointment of Auditor for Fiscal Year Ending June 30, 2020
COMMITTEE ACTION:
NOTE:
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JHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDDQGWKHVWDQGDUGVIRUILQDQFLDODXGLWVFRQWDLQHGLQGovernment
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Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan W͘Daugherty, CPA Joshua :͘Calhoun, CPA
4201 Brockton AveŶƵĞ Suite 100Riverside CA 92501 951.274.9500d> 951.274.7828 FAX www.trscpas.com
B-1
opinions. We will issue a written report upon completion of our audit of the District’s financial statements. Our
report will be addressed to the Board of Directors of the District. We cannot provide assurance that unmodified
opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add
emphasis-of-matter or other-matter paragraphs. If our opinions on the financial statements are other than
unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the
audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or
may withdraw from this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial
statements and compliance with the provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a material effect on the financial statements as required by Government
Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph
that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and
compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the District’s
internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the District’s internal control and compliance. The paragraph will
also state that the report is not suitable for any other purpose. If during our audit we become aware that the
District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will
communicate to management and those charged with governance that an audit in accordance with U.S. generally
accepted auditing standards and the standards for financial audits contained in Government Auditing Standards
may not satisfy the relevant legal, regulatory, or contractual requirements.
Audit Procedures - General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; therefore, our audit will involve judgment about the number of transactions to be examined and the
areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether from (1)
errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental
regulations that are attributable to the District or to acts by management or employees acting on behalf of the
District. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors
to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and
because we will not perform a detailed examination of all transactions, there is a risk that material misstatements
may exist and not be detected by us, even though the audit is properly planned and performed in accordance with
U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not
designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a
direct and material effect on the financial statements. However, we will inform the appropriate level of
management of any material errors or any fraudulent financial reporting or misappropriation of assets that come to
our attention. We will also inform the appropriate level of management of any violations of laws or governmental
regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our
attention. Our responsibility as auditor is limited to the period covered by our audit and does not extend to later
periods for which we are not engaged as auditors.
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Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts,
and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain
other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial
institutions. We will request written representations from your attorneys as part of the engagement, and they may
bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written
representations from you about your responsibilities for the financial statements; compliance with laws,
regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing
standards.
Audit Procedures - Internal Controls
Our audit will include obtaining an understanding of the District and its environment, including internal control
sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing,
and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain
controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance
matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in
scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material
weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to
management and those charged with governance internal control related matters that are required to be
communicated under AICPA professional standards and Government Auditing Standards.
Audit Procedures - Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws,
regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an
opinion on overall compliance and we will not express such an opinion in our report on compliance issued
pursuant to Government Auditing Standards.
Other Services
We will also assist in preparing the financial statements and related notes of the District in conformity with U.S.
generally accepted accounting principles, prepare the State Controllers Report (see separate engagement letter) in
conformity of the requirements of the California State Controller’s Office, and perform agreed-upon procedures
on the investments of the District in conformity with the District’s investment policy based on information
provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and
such services will not be conducted in accordance with Government Auditing Standards. We will perform the
services in accordance with applicable professional standards. The other services are limited to the financial
statement, State Controllers Report and investments agreed-upon procedures services previously defined. We, in
our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could
be construed as assuming management responsibilities.
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Management Responsibilities
Management is responsible for designing, implementing, establishing and maintaining effective internal controls,
relevant to the preparation and fair presentation of the financial statements that are free from material
misstatement, whether due to fraud or error, and for evaluating and monitoring ongoing activities, to help ensure
that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and
financial information is reliable and properly reported. Management is also responsible for implementing systems
designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also
responsible for the selection and application of accounting principles, for the preparation and fair presentation of
the financial statements and all accompanying information in conformity with U.S. generally accepted accounting
principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant
agreements.
Management is also responsible for making all financial records and related information available to us and for
the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all
information of which you are aware that is relevant to the preparation and fair presentation of the financial
statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access
to persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatement and for
confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated
by us during the current engagement and pertaining to the latest period presented are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and
for informing us about all known or suspected fraud affecting the District involving (1) management, (2)
employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have
a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any
allegations of fraud or suspected fraud affecting the District received in communications from employees, former
employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the
District complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and
appropriate steps to remedy any fraud and noncompliance with provisions of laws, regulations, contracts or grant
agreements, or abuse that we report.
You are responsible for the preparation of the supplementary information, which we have been engaged to report
on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the
supplementary information in any document that contains and indicates that we have reported on the
supplementary information. You also agree to include the audited financial statements with any presentation of
the supplementary information that includes our report thereon or make the audited financial statements readily
available to users of the supplementary information no later than the date the supplementary information is issued
with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that
(1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you
believe the supplementary information, including its form and content, is fairly presented in accordance with
GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period or if
they have changed the reasons for such changes; and (4) you have disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the supplementary information.
B-1
Management is responsible for establishing and maintaining a process for tracking the status of audit findings and
recommendations. Management is also responsible for identifying and providing report copies of previous
financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in
the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to
address significant findings and recommendations resulting from those audits, attestation engagements,
performance audits, or other studies. You are also responsible for providing management’s views on our current
findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the
timing and format for providing that information.
You agree to assume all management responsibilities relating to the financial statements and related notes and any
other nonaudit services we provide. You will be required to acknowledge in the management representation letter
our assistance with preparation of the financial statements and related notes, preparation of the State Controllers
Report, and investments agreed-upon procedures and that you have reviewed and approved the financial
statements and related notes, State Controllers Report, and investments agreed-upon procedures prior to their
issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by
designating an individual, preferably from senior management, with suitable skill, knowledge, or experience;
evaluate the adequacy and results of those services; and accept responsibility for them.
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your website, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or to consider the
consistency of other information in the electronic site with the original document.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will locate any
documents selected by us for testing.
We will provide copies of our reports to the District; however, management is responsible for distribution of the
reports and the financial statements. Unless restricted by law or regulation, or containing privileged and
confidential information, copies of our reports are to be made available for public inspection.
The audit documentation for this engagement is the property of Teaman, Ramirez & Smith, Inc. and constitutes
confidential information. However, subject to applicable laws and regulations, we may be requested to make
certain audit documentation available to grantor agencies or their designee, a federal agency providing direct or
indirect funding, or the U.S. Government Accountability Office for purpose of a quality review of the audit, to
resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If
requested, access to such audit documentation will be provided under the supervision of our firm. Furthermore,
upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties
may intend, or decide, to distribute the copies or information contained therein to others, including other
governmental agencies. In such cases, Teaman, Ramirez & Smith, Inc. is not responsible for the distribution of
the copies or information contained therein.
The audit documentation for this engagement will be retained for a minimum of five years after the report release
date or for any additional period requested by a grantor or federal agency. If we are aware that a federal awarding
agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for
guidance prior to destroying the audit documentation.
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UHJXODWLRQV
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan W͘Daugherty, CPA Joshua :͘Calhoun, CPA
4201 Brockton AveŶƵĞ Suite 100Riverside CA 92501 951.274.9500d> 951.274.7828 FAX www.trscpas.com
We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be
construed as assuming management responsibilities since performing those procedures or taking such action would impair our
independence.
Your Responsibilities
The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to assist you
in the preparation of the State Controller’s Report in accordance with the format prescribed by the California State Controller
and accounting principles generally accepted in the United States of America and assist you in the presentation of the State
Controller’s Report in accordance with the format prescribed by the California State Controller and accounting principles
generally accepted in the United States of America. You have the following overall responsibilities that are fundamental to
our undertaking the engagement in accordance with SSARS:
1) The selection of the format prescribed by the California State Controller and accounting principles generally accepted in
the United States of America as the financial reporting framework to be applied in the preparation of the State
Controller’s Report.
2) The preparation and fair presentation of the State Controller’s Report in accordance with the format prescribed by the
California State Controller and the accounting principles generally accepted in the United States of America.
3) The design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
State Controller’s Reports that are free from material misstatements, whether due to fraud or error.
4) The prevention and detection of fraud.
5) To ensure that the District complies with the laws and regulations applicable to its activities.
6) The accuracy and completeness of the records, documents, explanations, and other information, including significant
judgments, you provide to us for the engagement.
7) To provide us with—
access to all information of which you are aware that is relevant to the fair presentation of the State Controller’s
Report and supplementary information, such as records, documentation, and other matters.
additional information that we may request from you for the purpose of the compilation engagement.
unrestricted access to persons within the District of whom we determine it necessary to make inquiries.
You are also responsible for all management decisions and responsibilities and for designating an individual with suitable
skills, knowledge, and experience to oversee our services and the preparation of your State Controller’s Report. You are
responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services.
Our Report
As part of our engagement, we will issue a report that will state that we did not audit or review the State Controller’s Report
and that, accordingly, we do not express an opinion, a conclusion, nor provide any assurance on them. There may be
circumstances in which the report differs from the expected form and content. If, for any reason, we are unable to complete
the compilation of your State Controller’s Report, we will not issue a report on such prescribed forms as a result of this
engagement.
Our report will disclose that the State Controller’s Report is presented in a prescribed form in accordance with the
requirements of the California State Controller and is not intended to be a presentation in accordance with accounting
principles generally accepted in the United States of America.
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\RXDUHDZDUHWKDWLVUHOHYDQWWRWKHSHUIRUPDQFHRIWKHDJUHHGXSRQSURFHGXUHVRQWKHVXEMHFWPDWWHUDGGLWLRQDO
LQIRUPDWLRQWKDWZHPD\UHTXHVWIRUWKHSXUSRVHRISHUIRUPLQJWKHDJUHHGXSRQSURFHGXUHVDQGXQUHVWULFWHGDFFHVVWR
SHUVRQV ZLWKLQ WKH 'LVWULFW IURP ZKRP ZH GHWHUPLQH LW QHFHVVDU\ WR REWDLQ HYLGHQFH UHODWLQJ WR SHUIRUPLQJ WKRVH
SURFHGXUHV<RXDUHUHVSRQVLEOHIRUDVVXPLQJDOOPDQDJHPHQWUHVSRQVLELOLWLHVDQGIRURYHUVHHLQJDQ\QRQDWWHVWVHUYLFHV
ZHSURYLGHE\GHVLJQDWLQJDQLQGLYLGXDOSUHIHUDEO\ZLWKLQVHQLRUPDQDJHPHQWZKRSRVVHVVHVVXLWDEOHVNLOONQRZOHGJH
DQGRUH[SHULHQFH,QDGGLWLRQ\RXDUHUHVSRQVLEOHIRUHYDOXDWLQJWKHDGHTXDF\DQGUHVXOWVRIWKHVHUYLFHVSHUIRUPHGDQG
DFFHSWLQJUHVSRQVLELOLW\IRUWKHUHVXOWVRIVXFKVHUYLFHV
Richard A. Teaman, CPA David M. Ramirez, CPA Javier H. Carrillo, CPA Bryan W͘Daugherty, CPA Joshua :͘Calhoun, CPA
4201 Brockton AveŶƵĞ Suite 100Riverside CA 92501 951.274.9500d> 951.274.7828 FAX www.trscpas.com
At the conclusion of our engagement, we will require certain written representations in the form of a representation letter
from management that, among other things, will confirm management's responsibility for the investments of the District
in accordance with generally accepted accounting principles and the District's investment policy.
Joshua Calhoun is the engagement partner and is responsible for supervising the engagement and signing the report or
authorizing another individual to sign it.
Our fees for these services will be $1,800 and is included in the fee quoted in the engagement letter to conduct the June
30, 2020 financial audit of the District dated November 13, 2019. The fee is based on anticipated cooperation your
personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If
significant additional time is necessary, we will discuss it with you and arrive at a new fee before we incur the additional
costs.
We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant teims of our
engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described
in this letter, please sign the enclosed copy and return it to us. If the need for additional services arises, or the procedures
need to be modified, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in
an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in
writing their responsibility for the sufficiency of procedures.
Very truly yours,
TEAMAN, RAMIREZ & SMITH, INC.
Joshua J. Calhoun
Certified Public Accountant
RESPONSE:
This letter correctly sets forth the understanding of the Otay Water District.
Management Signature:__________________________________
Name and Title:
Date:
Governance Signature:
Name and
Otay Water District Agreed-Upon Procedures
Investments
1. Obtain a copy of the District’s investment policy and determine that it is in effect for the fiscal
year ended June 30, 2020.
2. Select 4 investments held at year end and determine if they are allowable investments under
the District’s Investment Policy.
3. For the four investments selected in #2 above, determine if they are held by a third party
custodian designated by the District.
4. Confirm the part or original investment amount and market value of the four investments
selected above with the custodian or issuer of the investments.
5. Select two investment earnings transactions that took place during the year and recomputed the
earnings to determine if they proper amount was received.
6. Trace amounts received for transactions selected at #5 above into the District’s bank accounts.
7. Select five investment transactions (buy, sell, trade, or maturity) occurring during the year
under review and determine that the transactions are permissible under the District’s
investment policy.
8. Review supporting documentation for the five investments selected at #7 above to determine if
the transactions were appropriately recorded in the District’s general ledger.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO:DIV. NO.
APPROVED BY: Joe Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4374 Reappointing Timothy Smith as Otay Water District's Second Representative on the Board of
Directors of the San Diego County Water Authority
GENERAL MANAGER’S RECOMMENDATION:
Adopt Resolution No. 4374 reappointing Timothy Smith as Otay Water District's Second Representative on the Board of Directors of the San
Diego County Water Authority.
COMMITTEE ACTION:
See Attachment A.
PURPOSE:
To present Resolution No. 4374 for the Board’s adoption to reappoint Board Member Timothy Smith as the District’s second representative to
the San Diego County Water Authority Board of Directors.
ANALYSIS:
The term of the District’s second representative on the San Diego
County Water Authority’s (CWA) Board of Directors, held by Director Timothy Smith, is expiring on January 23, 2020. To comply with CWA
requirements, it is necessary for the Board to adopt a Resolution to reappoint Director Smith to continue as the District’s second representative. Through the adoption of Resolution No. 4374
(Attachment B), Director Smith would continue to fill the District’s second seat with a term that would expire on January 23, 2026. Staff
recommends that the Board adopt Resolution 4374 reappointing Director
AGENDA ITEM 4
2
Smith as its second representative on the County Water Authority’s
Board of Directors. FISCAL IMPACT:
None. STRATEGIC GOAL:
Maintain effective communications with other cities, special districts, State and Federal governments, community organizations and Mexico.
LEGAL IMPACT:
None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4374
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4374 Reappointing Timothy Smith as Otay Water District's Second Representative on the Board of Directors of the San Diego County Water Authority
COMMITTEE ACTION:
The Finance and Administration Committee is scheduled to review this item at a meeting scheduled on December 9, 2019. This attachment will
be updated with notes from the Committee’s discussion.
1
RESOLUTION NO. 4374 A RESOLUTION OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT CONSENTING TO AND APPROVING THE REAPPOINTMENT OF Timothy Smith AS A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) WHEREAS, Section 6(d) of the County Water Authority Act
(Chapter 545 of the Statutes of 1943, Chapter 45 Water Code) pro-
vides that, in addition to its one representative, each member
agency may, at its option, designate and appoint one additional
representative under certain conditions; and
WHEREAS, the Board of Directors (District Board) of the Otay
Water District (District) has previously consented to and ap-
proved the designation and appointment of Timothy Smith to serve
as the District’s second representative on the San Diego County
Water Authority Board of Directors (“CWA Board”); and
WHEREAS, Mr. Smith’s term as a designated and appointed rep-
resentative of the District to the CWA Board expires on January
23, 2020; and
WHEREAS, the District proposes, and this Board desires to
consent to and approve, the designation and reappointment of
Timothy Smith to a six-year term as the District’s second repre-
sentative to the CWA Board ending January 23, 2026.
NOW, THEREFORE, it is hereby resolved, ordered and deter-
mined by the Board of Directors of the Otay Water District as
follows:
SECTION 1. This Board of Directors hereby consents to and ap-
proves the designation and reappointment of Timothy Smith as the
ATTACHMENT B
2
District’s second representative on the Board of Directors of the
San Diego County Water Authority for the term ending on January
23, 2026.
SECTION 2. The President of the District’s Board, the General
Manager of the District, the District’s Secretary and their de-
signees are hereby authorized to take any action required to be
taken on behalf of the District to carry out the purpose of this
Resolution.
SECTION 3. This Resolution shall be effective as of the date it
is adopted.
PASSED, APPROVED AND ADOPTED by the Otay Water District
Board of Directors at a regular meeting held this 8th day of Jan-
uary, 2020.
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________ President ATTEST: ________________________ District Secretary
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Mark Watton,
General Manager
W.O./G.F. NO:DIV. NO.
APPROVED BY: Joe Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Adopt Resolution No. 4375 Amending Board of Directors Policy
No. 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, with Regard to the Reporting of Meetings Attended as Required by State Statute
GENERAL MANAGER’S RECOMMENDATION:
That the Board adopt Resolution No. 4375 amending Section 6, Director’s Responsibility, of the Board of Directors Policy No.
8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, with regard to the reporting of meetings attended at the expense of the District at the next regular meeting of the Board of Directors as required by State statute [Government Code Section 53232.3(d)], and that Policy 8 be
amended to include a provision stating that all documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3. subd. (e)].
PURPOSE:
To amend Section 6, Director’s Responsibility, of the Board of Directors Policy No. 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, with regard to the
reporting of meetings attended at the expense of the District at the next regular meeting of the Board of Directors as required by State statute [Government Code Section 53232.3(d)].
COMMITTEE ACTION:
Please see Attachment A.
AGENDA ITEM 5
ANALYSIS:
The California State legislature passed Assembly Bill 1234 in 2005. One of the purposes of the law was to ensure transparency in local governments regarding payments made to the members of
legislative bodies. These payments include reimbursement for attendance by the local government legislative body’s members at
various functions (Government Code Section 53232, 53232.1). The statute indicates that “members of a legislative body shall
provide brief reports on meetings attended at the expense of the local agency at the next regular meeting of the legislative
body” [Government Code Section 53232.3(d)]. To correspond the District’s policy with State statute, it is proposed that Board of Directors Policy No. 8, Directors Compensation, Reimbursement
of Expenses and Group Insurance Benefits, be amended to include the statutory language.
Staff recommends that the board adopt Resolution No. 4375
(Attachment B) to amend Board of Directors Policy 8 to include the statutory language concerning the reporting of meetings that have been attended at the District’s expense at the next regular
meeting of the Board of Directors. Directors may provide their report verbally or in writing. It is proposed that Directors who wish to provide their report verbally, would do so during the “Directors Reports” section of the meeting. Reports in writing can be provided by completing the proposed “Board of
Directors Meetings Attended Form” (Exhibit E to Board of Directors Policy 8) and submitting the completed form to the
District Secretary. Staff is also recommending that Policy 8 be amended to include a provision stating that all documents related to reimbursable District expenditures are public records
subject to disclosure under the California Public Records Act. (Government Code Section 53232.3. subd. (e)). A strike-through
copy of the proposed changes to Policy 8 is attached to the resolution (Attachment Exhibit 1). FISCAL IMPACT:
None. LEGAL IMPACT:
None.
Attachments:
Attachment A – Committee Notes
Attachment B - Resolution No. 4375 Exhibit 1: Strike-thru Copy of Policy 8 Attachment C – Proposed Copy of Policy 8
ATTACHMENT A
SUBJECT/PROJECT:
Adopt Resolution No. 4375 Amending Board of Directors Policy No. 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, with Regard to the
Reporting of Meetings Attended as Required by State Statute
COMMITTEE ACTION: The Finance and Administration Committee is scheduled to review this item at a meeting scheduled on December 9, 2019. This
attachment will be updated with notes from the Committee’s discussion.
ATTACHMENT B
RESOLUTION NO. 4375
RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING POLICY NO. 8 – DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND
GROUP INSURANCE BENEFITS, WITH REGARD TO THE REPORTING OF MEETINGS ATTENDED
WHEREAS, the District routinely evaluates and makes
recommendations to update, revise and replace Board policies, in
order to ensure that the policies are maintained to promote best
management practices, and
WHEREAS, the California State legislature passed Assembly
Bill 1234 in 2005 which, among other things, added Article 2.3 of
the Government Code (Sections 53232 and 53232.4); and
WHEREAS, one of the purposes of the law was to ensure
transparency in local governments regarding payments made to the
members of legislative bodies, where payments include
reimbursement for attendance by the local government legislative
body’s members at various functions (Government Code Section
53232, 53232.1); and
WHEREAS, Government Code Section 53232.3 subd. (d) provides
that “members of a legislative body shall provide brief reports on
meetings attended at the expense of the local agency at the next
regular meeting of the legislative body”; and
WHEREAS, Government Code Section 53232.3 subd. (e) provides
that all documents related to reimbursable District expenditures
are public records subject to disclosure under the California
Public Records Act.
WHEREAS, the District has determined that there is a need to
amend Policy No. 8, Directors Compensation, Reimbursement of
Expenses and Group Insurance Benefits, in order that it correspond
with the aforementioned State statute.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of
the Otay Water District as follows:
Amend Policy No. 8, Directors Compensation, Reimbursement of
Expenses and Group Insurance Benefits, as reflected in Exhibit 1
of this resolution.
PASSED, APPROVED AND ADOPTED by the Board of Directors
of the Otay Water District at a regular meeting held this 8st day
of January 2020, by the following vote:
Ayes:
Noes:
Abstain:
Absent:
__________________________________
President ATTEST:
______________________ Secretary
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/191/8/20
Page 1 of 6
EXHIBIT 1
Purpose
To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings
or the performance of other authorized business, and for group insurance benefits for Directors.
Background
Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and water related issues, and California special districts. State statutes authorize District payments for meetings, reimbursements of expenses. State law also authorizes the District to provide health and welfare
benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January
1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January
1, 1995, if the recipient participates on a self-pay basis.
Policy
The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for
reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals.
A. Directors’ Per Diem
As provided in Section 1.01 C. of the District Code of Ordinances, each Director shall receive a per diem in the amount of $152 (effective July 1, 2019) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month. Attendance at any meeting
shown on Exhibit A to this Policy shall be deemed a meeting requested or authorized by the Board. Attendance of meetings shall
be in accordance with Exhibit A. The President of the Board or the Board may authorize a Director to attend meetings not listed in Exhibit A when the President or the Board determine that it is in the interest of the District that a Director attend, and that such attendance be compensated and expenses reimbursed. Director’s claims for per diem amounts shall be made on a “Board of Directors Per Diem and Mileage Claim Form” (Exhibit B). The President of the Board or the Board may approve reimbursement of expenses outside the per diem limit for a Director, if the Director submits receipts
for all of the related District business expenses.
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/3/191/8/20
Page 2 of 6
Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final.
When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $152 per diem
and reasonable expenses associated with the extended stay will be reimbursed as specified below.
B. Pre-payment of Otherwise Reimbursable Expenses
The Director may request pre-payment of registration,
transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses.
C. Reimbursement of Expenses
Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows:
1. Authorization
Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the
Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors
Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board.
2. Transportation
a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares.
b. Automobile
1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at
the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and
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liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement.
Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above
requirements.
2. Rental Cars: The District will provide a rental
car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are
offered at no additional cost to the District.
c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, modes above.
3. Meals and Lodging
a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director
presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals.
Reimbursements for expense items where a receipt has been lost will not be paid until the President or the
Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration:
1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided
by the M&IE per day. This amount is exclusive of any gratuities.
2. Single Meal Reimbursement When a Director requires reimbursement for a
single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or
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circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities.
3. Partial Day Reimbursement When a director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided
by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be
reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude
any gratuities.
4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities.
b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal
circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it
ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable.
4. Entertainment
The District shall not cover any expenses incurred for recreation or entertainment.
5. Incidental Expenses
Unavoidable, necessary and reasonable authorized expenses will be fully reimbursed by the District. Some examples of
allowable expenses are:
a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events.
b. Parking fees.
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c. The following expenses are not reimbursable:
1. Alcoholic beverages
2. Parking or traffic violations
3. In-room movies or laundry services
6. Director's Responsibility
a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts
of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses.
If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D)
and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement.
b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent
Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the
reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse
the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures.
c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant.
d. Expenses incurred by spouses, family members, or guests are the responsibility of the Director.
e. Directors shall provide brief reports on meetings attended at the expense of the District at the next
regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District
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Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records.
f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)].
a.g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District
within the immediately preceding fiscal year of at least $100 for each individual charge for services or product
received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee.
D. District Group Insurance Benefits
1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits
are furnished by the District at District cost, with applicable contributions, for active District employees and
Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment
insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer
term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis.
2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of
office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which
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benefits are furnished by the District, at District cost,
for retired Directors.
E.Miscellaneous
Cell Phone expenses are not considered a reimbuseable expense.
Attachments
Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form”
EXHIBIT A
Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings:
The Board reviews its authorization and policy for payment of per diem compensation forpre-approved meetings annually, in January
following reorganization of the Board and election of a new President. Below is the current Board policy:
1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement:
a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager and authorized by the President of the Board where individual Directors are requested to attend
d) Except as otherwise specifically excluded in this policy, official District functions that take place
during normal business hours where Directors are requested to attend by either the Board President or the Board e) Semi-annual conference of the Association of California Water Agencies f) Regular quarterly meetings of the Water Agencies Association of San Diego County g) Regularly monthly meeting of Council of Water Utilities h) Business meetings and conferences of the California Special District Association held in San Diego County
All other meetings not listed here require pre-approval by the President or Board for Directors to receive per
diem compensation and/or expense reimbursement. 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event
or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the
Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below:
EXHIBIT A
a) Planning Group and City Commission meetings that fall within the boundaries of each directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission
d) ACWA or CSDA meetings/conferences e) Water Conservation Garden
f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District, and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive
a per diem and expense reimbursement.
4. When the President or the Board appoints a director(s) to a committee, the meeting(s) shall be considered pre-approved
for per diem and expense reimbursement.
5. The following meetings require pre-approval by the Board President or Board of Directors to receive per diem and expense reimbursement:
a) Regional and/or local Chamber of Commerce business or board meetings where the District maintains a membership or whose geographical area is within District boundaries b) Other meetings that the board president deems beneficial to the District 6. The following meetings are not eligible for pre-approved per diem claims:
a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to District
business b) Otay employee appreciation breakfast, luncheons or
dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is provided by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly
g) Any political campaign event or function
EXHIBIT A
7. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will
make the final determination.
8. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board.
EXHIBIT B
(Director’s Signature) GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED MILEAGE
HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
Total Meeting Per Diem: $
($145 per meeting)
Total Mileage Claimed: miles
EXHIBIT B
INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM
1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District.
Note: The District will pay Director's per-diem for one meeting/
function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the
District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings.
2. Record number of miles (round trip) driven to attend meeting/function.
The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy
should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California
driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards.
The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business.
Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement.
No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form.
OTAY WATER DISTRICT
BOARD OF DIRECTORS TRAVEL REQUEST FORM
Director: Date of Request:
Name and Location of Function:
Date(s) function to be held: -
Sponsoring Organization:
Request for Prepayment of Fees Related to the Function:
Expense Type Not Needed Pre-Payment Requested
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses – Explain Below
Lodging Preference:
Explanation of Other
Expenses:
Signature of Director Date of Request
For Office Use Only Below This Line
Date of Board Approval:
Expense Type Description Amount Pre-Paid
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses
District Secretary Date Processed
EXHIBIT C
OTAY WATER DISTRICT
BOARD OF DIRECTORS
EXPENSE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEMIZED REIMBURSEMENT CLAIMED
Date
Type of Reimbursement
Amount
TOTAL Reimbursement Claimed: $
Director Signature: Date:
GM Receipt: Date:
INSTRUCTIONS ON REVERSE
EXHIBIT D
INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM
The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all
expenses.
All receipts must have the nature of the expense and the business purpose
noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8).
Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate).
Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic Beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses, family members, or guests.
ND: 4840-9653-1715, v. 2
EXHIBIT D
Exhibit E
Board of Directors Meetings Attended Form
Director Name: Period Covered:
From: To:
Item No. Date Meeting Attended Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
-Instructions on Reverse -
Exhibit E
Instructions for the Preparation of the Board of Directors Meetings Attended Form
1. Enter the period (dates) of the meetings that will be reported on the form.
2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on
behalf and expense of the District.
Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or
on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records.
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ATTACHMENT C
Purpose
To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings
or the performance of other authorized business, and for group insurance benefits for Directors.
Background
Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and water related issues, and California special districts. State statutes authorize District payments for meetings, reimbursements of expenses. State law also authorizes the District to provide health and welfare
benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January
1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January
1, 1995, if the recipient participates on a self-pay basis.
Policy
The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for
reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals.
A. Directors’ Per Diem
As provided in Section 1.01 C. of the District Code of Ordinances, each Director shall receive a per diem in the amount of $152 (effective July 1, 2019) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month. Attendance at any meeting
shown on Exhibit A to this Policy shall be deemed a meeting requested or authorized by the Board. Attendance of meetings shall
be in accordance with Exhibit A. The President of the Board or the Board may authorize a Director to attend meetings not listed in Exhibit A when the President or the Board determine that it is in the interest of the District that a Director attend, and that such attendance be compensated and expenses reimbursed. Director’s claims for per diem amounts shall be made on a “Board of Directors Per Diem and Mileage Claim Form” (Exhibit B). The President of the Board or the Board may approve reimbursement of expenses outside the per diem limit for a Director, if the Director submits receipts
for all of the related District business expenses.
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Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre-approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final.
When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $152 per diem
and reasonable expenses associated with the extended stay will be reimbursed as specified below.
B. Pre-payment of Otherwise Reimbursable Expenses
The Director may request pre-payment of registration,
transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses.
C. Reimbursement of Expenses
Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows:
1. Authorization
Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the
Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors
Travel Request Form” (Exhibit B) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board.
2. Transportation
a. Air Transportation The District will endeavor to purchase airline tickets in advance taking advantage of discounts and low airfares.
b. Automobile
1. Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at
the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and
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liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement.
Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above
requirements.
2. Rental Cars: The District will provide a rental
car when needed. Such rental car shall be a compact or mid-size class, unless upgrades are
offered at no additional cost to the District.
c. Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, etc. transportation may be used in lieu of, or in conjunction with, modes above.
3. Meals and Lodging
a. Meals and Beverages Whenever travel requires meals, the meals, excluding gratuity, shall be reimbursable, provided the Director
presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals.
Reimbursements for expense items where a receipt has been lost will not be paid until the President or the
Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration:
1. Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided
by the M&IE per day. This amount is exclusive of any gratuities.
2. Single Meal Reimbursement When a Director requires reimbursement for a
single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or
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circumstances. These amounts and any amount approved by the President or Board shall exclude gratuities.
3. Partial Day Reimbursement When a director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided
by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be
reasonable for the occasion or circumstances. In any event all amounts to be reimbursed shall exclude
any gratuities.
4. Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes. The maximum meal reimbursements shall exclude any and all gratuities.
b. Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single-room business, government or commercial class accommodation may be obtained. Under normal
circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it
ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return to home after 12:00 AM, lodging for the night before or the night after will be reimbursable.
4. Entertainment
The District shall not cover any expenses incurred for recreation or entertainment.
5. Incidental Expenses
Unavoidable, necessary and reasonable authorized expenses will be fully reimbursed by the District. Some examples of
allowable expenses are:
a. Reasonable transportation to local restaurants and to optional functions that are a part of conference events.
b. Parking fees.
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BOARD OF DIRECTORS POLICY
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Date
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c. The following expenses are not reimbursable:
1. Alcoholic beverages
2. Parking or traffic violations
3. In-room movies or laundry services
6. Director's Responsibility
a. Directors must submit a detailed “Board of Directors Expense Claim Form” for reimbursement. Claim forms should be supported by vouchers and itemized receipts
of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses.
If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D)
and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement.
b. Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent
Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the
reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse
the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures.
c. When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant.
d. Expenses incurred by spouses, family members, or guests are the responsibility of the Director.
e. Directors shall provide brief reports on meetings attended at the expense of the District at the next
regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
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Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records.
f. All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)].
g. The District shall, at least annually, provide a report to disclose any reimbursement paid by the District
within the immediately preceding fiscal year of at least $100 for each individual charge for services or product
received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee.
D. District Group Insurance Benefits
1. Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits
are furnished by the District at District cost, with applicable contributions, for active District employees and
Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment
insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer
term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis.
2. Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which
OTAY WATER DISTRICT
BOARD OF DIRECTORS POLICY
Subject Policy
Number
Date
Adopted
Date
Revised
DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 1/8/20
Page 7 of 6
benefits are furnished by the District, at District cost,
for retired Directors.
E.Miscellaneous
Cell Phone expenses are not considered a reimbuseable expense.
Attachments
Exhibit A: Approved Function List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form”
EXHIBIT A
Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings:
The Board reviews its authorization and policy for payment of per diem compensation forpre-approved meetings annually, in January
following reorganization of the Board and election of a new President. Below is the current Board policy:
1. The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement:
a) Otay Water District Regular and Special Board Meetings b) Otay committee meetings for committee members only c) Otay business meetings called by the General Manager and authorized by the President of the Board where individual Directors are requested to attend
d) Except as otherwise specifically excluded in this policy, official District functions that take place
during normal business hours where Directors are requested to attend by either the Board President or the Board e) Semi-annual conference of the Association of California Water Agencies f) Regular quarterly meetings of the Water Agencies Association of San Diego County g) Regularly monthly meeting of Council of Water Utilities h) Business meetings and conferences of the California Special District Association held in San Diego County
All other meetings not listed here require pre-approval by the President or Board for Directors to receive per
diem compensation and/or expense reimbursement. 2. The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event
or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the
Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below:
EXHIBIT A
a) Planning Group and City Commission meetings that fall within the boundaries of each directors district (when issues impacting OWD are discussed) b) Inter-Agency Committee Meeting c) METRO (TAC/AFFORD) Commission
d) ACWA or CSDA meetings/conferences e) Water Conservation Garden
f) WateReuse Association g) South County Economic Development Council 3. The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District, and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive
a per diem and expense reimbursement.
4. When the President or the Board appoints a director(s) to a committee, the meeting(s) shall be considered pre-approved
for per diem and expense reimbursement.
5. The following meetings require pre-approval by the Board President or Board of Directors to receive per diem and expense reimbursement:
a) Regional and/or local Chamber of Commerce business or board meetings where the District maintains a membership or whose geographical area is within District boundaries b) Other meetings that the board president deems beneficial to the District 6. The following meetings are not eligible for pre-approved per diem claims:
a) Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to District
business b) Otay employee appreciation breakfast, luncheons or
dinners c) Retirement receptions d) Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is provided by another agency (i.e. San Diego County Water Authority and the Metro Commission) f) First Friday Breakfasts unless presenting Otay official business to the assembly
g) Any political campaign event or function
EXHIBIT A
7. In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will
make the final determination.
8. All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre-approved by the Board President or the Board.
EXHIBIT B
(Director’s Signature) GM Receipt: Date:
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED MILEAGE
HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
Total Meeting Per Diem: $
($145 per meeting)
Total Mileage Claimed: miles
EXHIBIT B
INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM
1. Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District.
Note: The District will pay Director's per-diem for one meeting/
function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the
District will reimburse for the mileage and any reimbursable out-of-pocket expenses incurred for these additional meetings.
2. Record number of miles (round trip) driven to attend meeting/function.
The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy
should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California
driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards.
The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business.
Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement.
No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form.
OTAY WATER DISTRICT
BOARD OF DIRECTORS TRAVEL REQUEST FORM
Director: Date of Request:
Name and Location of Function:
Date(s) function to be held: -
Sponsoring Organization:
Request for Prepayment of Fees Related to the Function:
Expense Type Not Needed Pre-Payment Requested
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses – Explain Below
Lodging Preference:
Explanation of Other
Expenses:
Signature of Director Date of Request
For Office Use Only Below This Line
Date of Board Approval:
Expense Type Description Amount Pre-Paid
Registration
Airline
Auto Rental
Mileage N/A
Taxi/Shuttle N/A
Lodging
Meals N/A
Other Expenses
District Secretary Date Processed
EXHIBIT C
OTAY WATER DISTRICT
BOARD OF DIRECTORS
EXPENSE CLAIM FORM
Pay To: Period Covered:
Employee Number: From: To:
ITEMIZED REIMBURSEMENT CLAIMED
Date
Type of Reimbursement
Amount
TOTAL Reimbursement Claimed: $
Director Signature: Date:
GM Receipt: Date:
INSTRUCTIONS ON REVERSE
EXHIBIT D
INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM
The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all
expenses.
All receipts must have the nature of the expense and the business purpose
noted on the receipt.
The District will not reimburse the cost of travel of a personal nature taken
in conjunction with travel on official business.
Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8).
Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate).
Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s
reimbursement.
No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form.
The following expenses are not reimbursable:
a. Alcoholic Beverages d. Laundry service
b. Parking or traffic violations e. Entertainment or recreation
c. In-room movies f. Expenses incurred by spouses, family members, or guests.
ND: 4840-9653-1715, v. 2
EXHIBIT D
Exhibit E
Board of Directors Meetings Attended Form
Director Name: Period Covered:
From: To:
Item No. Date Meeting Attended Description
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
-Instructions on Reverse -
Exhibit E
Instructions for the Preparation of the Board of Directors Meetings Attended Form
1. Enter the period (dates) of the meetings that will be reported on the form.
2. Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on
behalf and expense of the District.
Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or
on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Bob Kennedy Engineering Manager
PROJECT: P1210-018000 DIV. NO. 5
APPROVED BY: Dan Martin, Assistant Chief of Engineering
Rod Posada, Chief, Engineering
Mark Watton, General Manager
SUBJECT: Approval of the November 26, 2019 Purchase Agreement for $220,000.00 for the Buena Vista Avenue Property in Spring Valley
GENERAL MANAGER’S RECOMMENDATION:
That the Otay Water District (District) Board of Directors (Board)
approve the November 26, 2019 Purchase Agreement for $220,000.00 for the Buena Vista Avenue property in Spring Valley and authorize the General Manager to enter into escrow to complete the sale of the property.
COMMITTEE ACTION:
Please see Attachment A.
PURPOSE:
To request the Board approve the November 26, 2019 Purchase Agreement for $220,000.00 for the Buena Vista Avenue property in Spring Valley and authorize the General Manager to enter into escrow to complete the sale of the property (see Exhibit A for District property
location).
AGENDA ITEM 6
2
ANALYSIS: As a regular course of business, the District periodically reviews the need and use of real estate (property) it owns. This is done to
ensure that the District’s current and future property needs are provided for, and that property that is no longer required is
disposed of in order to minimize costs and associated liabilities of property ownership. The retention of real property that is surplus to the District’s needs increases operating expense by increasing the
requirement to maintain and manage the property.
After an evaluation of District-owned properties, staff identified the Buena Vista Avenue property in Spring Valley as not required for District use and on January 2, 2019 the Board adopted Resolution No.
4355 declaring this surplus property and directed staff to solicit offers for the surplus property.
On February 22, 2019, staff solicited offers for the lease or sale of the surplus properties from Preferred Entities of the opportunity to purchase or lease the properties for specified priority uses, as required by Government Code § 54222 et seq.
On May 31, 2019, the District received an appraisal of the Buena Vista Avenue property in Spring Valley from Hendrickson Appraisal Company, Inc. (see Exhibit B) that valued the property at $200,000. This appraisal was performed to assist the District in determining
the market value of the subject property. Staff did not receive any offers for the Buena Vista Avenue property in Spring Valley from any Preferred Entities, and on May 21, 2019, staff advertised for the service of a real estate broker (Broker)
with experience in dealing in commercial and residential real estate. On August 14, 2019, the District signed a Sales Listing Agreement
with Pacific Coast Commercial (PCC) to provide Broker services for the District (see Exhibit C). PCC prepared a broker’s opinion and recommended a listing price of $220,000.00. PCC prepared the
property’s marketing program and listed the property on August 26, 2019 (see Exhibit D).
The District received an offer on the property on September 20, 2019. The District submitted a counteroffer on November 21, 2019 modifying
the terms of the original offer and approved the buyer counter offer on November 26, 2019 that included minor modification of the terms
from Mathew H. Deal for $220,000.00 subject to the terms of the Purchase Agreement and the approval by the Board (see Exhibit E).
3
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
Acceptance of this offer will result in revenue of approximately $220,000.00, less escrow and closing costs, to the District and the
proceeds from the sale of the properties will be credited to the funds that provided for their purchase.
The Engineering Outside Services budget covered the cost of appraisal services and environmental services. Currently, Engineering’s
expenses have not exceeded anticipated expenses and it is expected that there will be sufficient funds available to offset the expected
costs. 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.
BK/DM/RP:jf
P:\Public-s\Real Estate Services\4 Surplus Properties - Jan 2019\Staff Reports\Staff Report 01-08-20\BD 01-08-20 Approve PA for Buena Vista Ave.docx Attachments: Attachment A – Committee Action
Exhibit A – Buena Vista Ave. Property Location Map Exhibit B – Buena Vista Ave. Property Appraisal
Exhibit C – Sales Listing Agreement Exhibit D – Buena Vista Ave. Property Marketing Program
Exhibit E – Buena Vista Ave. Property Purchase Agreement
ATTACHMENT A
SUBJECT/PROJECT: P1210-018000
Approval of the November 26, 2019 Purchase Agreement for $220,000.00 for the Buena Vista Avenue Property in Spring
Valley
COMMITTEE ACTION:
The Finance and Administration Committee (Committee) reviewed this item at a meeting held on December 9, 2019. The Committee supported staff’s recommendation and presentation of this item to the full Board as an informational item.
NOTE: The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any
discussion or changes as directed from the Committee, prior to presentation to the full Board.
OTAY WATER DISTRICTOWD PARCEL 579-364-17-00LOCATION MAP November 2018F
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VICINITY MAP
PROJECT SITE
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Legend
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ▪ Consultants
HAC File No. 2019116
9665 Campo Road, Spring Valley, CA
APPRAISAL OF
Two Legal Lots located
On the West Side of Buena Vista Avenue
South of Chestnut Street
Spring Valley, California 91977
Owner:
Otay Municipal Water District
EFFECTIVE DATE OF APPRAISAL:
May 28, 2019
DATE OF REPORT:
May 31, 2019
APPRAISED FOR
Otay Municipal Water District
2554 Sweetwater Springs Boulevard
Spring Valley, CA 91978
APPRAISED BY
Hendrickson Appraisal Company, Inc
3530 Camino del Rio North, Suite 205
San Diego, CA 92108
(619) 282-0800
May 31, 2019
Mr. Bob Kennedy
2554 Sweetwater Springs Boulevard
Spring Valley, CA 91978
Reference: Two 6,375± Vacant Residential Lots
Ownership: Otay Municipal Water District
2554 Sweetwater Springs Boulevard, Spring Valley, CA 91978
Our File No. 2019116
Dear Mr. Kennedy,
At your request and authorization, the above referenced properties and their environs have been inspected and
analyzed for the purpose of formulating an opinion of the market value of the fee-simple interest in the subject
properties.
The purpose of the appraisal is for use by the Otay Municipal Water District for potential disposition purposes. The
intended user of this appraisal is the Otay Municipal Water District, the property owner.
This appraisal report describes the facts and reasoning upon which our opinions are based. The analysis and final
report have been prepared in compliance with, and subject to the requirements of the Uniform Standards of
Professional Appraisal Practice (USPAP) as published by the Appraisal Foundation. The report satisfies the
requirements of USPAP Standard 2-2(b) for appraisal reports. The report contains abbreviated discussions relating
to the subject property and the appraisal analysis performed, but is sufficient to meet the needs of the client. The
appraisal addresses the market value of only the two southerly legal lots which make up the southern half of the
entire Otay Municipal Water District ownership.
Based upon our investigations and analysis, and by virtue of our experience as real estate analysts and appraisers,
it is our opinion that the market value of the subject properties as of May 28, 2019 was:
Lot 18 - $100,000
Lot 19 - $100,000
This appraisal is subject to certain additional assumptions and limiting conditions that are made a part of this report.
Acceptance and use of this report by the client or any other party constitutes acceptance of these assumptions and
limiting conditions.
Thank you for this opportunity to be of service. Should you have any questions regarding this appraisal, please
contact us at (619) 282-0800.
Respectfully submitted,
Edward A. Beaver Ted G. Hendrickson, MAI
California Certified General Appraiser California Certified General Appraiser
License No: AG009555 License No: AG004974
3
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ● Consultants
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................ 3
ASSUMPTIONS AND LIMITING CONDITIONS .................................................................................. 4
CERTIFICATION ...................................................................................................................................... 6
SUMMARY OF SALIENT FACTS AND CONCLUSIONS .................................................................... 7
AERIAL PHOTOGRAPH .......................................................................................................................... 8
INTRODUCTION ...................................................................................................................................... 9
AREA MAP .............................................................................................................................................. 13
NEIGHBORHOOD MAP ......................................................................................................................... 14
AREA DESCRIPTION ............................................................................................................................. 15
PLAT MAP ............................................................................................................................................... 17
SITE DESCRIPTION ............................................................................................................................... 18
SUBJECT PHOTOGRAPHS.................................................................................................................... 20
HIGHEST AND BEST USE .................................................................................................................... 24
VALUATION OF SUBJECT PROPERTY.............................................................................................. 25
SALES COMPARISON APPROACH ..................................................................................................... 26
MARKET DATA ADDENDUM ............................................................................................................. 35
4
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ● Consultants
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is prepared subject to the following conditions and stipulations:
Hypothetical Condition:
A hypothetical condition is defined as that which is contrary to what exists but is supposed for the purpose
of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or
economic characteristics of the subject property. By definition the use of a hypothetical condition might
affect the assignment results.
The opinion of the market value of the two legal lots making up the southerly half of the
current ownership is based on the hypothetical condition that the property owner has
completed the necessary steps with the San Diego County Assessor’s office to have those
lots identified with an individual Assessor Parcel Number for each lot.
General Assumptions:
(1) The appraisers were provided a copy of a preliminary title report for review.
(2) No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to
title, which is assumed to be good and marketable. All existing liens, encumbrances, and
assessments have been disregarded, unless otherwise noted, and the property is appraised as though
free and clear, having responsible ownership and competent management. It is assumed that the
property is readily marketable and free of all liens and encumbrances except any specifically
discussed in this report
(3) Information, estimates and opinions furnished by others, and contained in this report are assumed
to be true, correct and reliable. A reasonable effort has been made to verify such information,
however, no responsibility for its accuracy is assumed by the appraisers. Should any of this
information prove to be incorrect, we reserve the right to amend our appraisal accordingly.
Photographs, plats and maps furnished in this report are intended to assist the reader in visualizing
the property.
(4) No soils or geotechnical investigation report was provided by the client. It is assumed that there
are no hidden or unapparent conditions of the property, subsoil or structures which would render
it more or less valuable than otherwise comparable properties. No responsibility is assumed for
such conditions or for engineering which might be required to discover such factors. The appraisers
are not qualified to analyze said conditions, and urge the client to retain an expert in this field if
desired. No visible evidence of soils subsidence was observed during our inspection of the
property.
(5) No opinion is rendered as to the value of sub-surface gas, oil or mineral rights, or whether the
property is subject to surface entry for the exploration of removal of such materials, except as is
expressly stated in this appraisal report.
5
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ● Consultants
(6) All opinions of value are presented as the appraisers’ considered opinion based upon the facts and
data set forth in this report. The appraisers assume no responsibility for changes in the market
conditions or the inability of the owner to locate a purchaser within a reasonable time at the
appraised market value.
(7) It is assumed that there are no legitimate environmental or ecological issues that would prevent
orderly development of the land to its highest and best use under economically feasible conditions.
(8) Testimony or attendance in court or other hearing by reason of this appraisal, with reference to the
property in question, shall not be required unless arrangements have previously been made with
the client a reasonable amount of time in advance relative to such additional employment.
Additional pre-trial and court testimony is beyond the scope of this appraisal assignment and will
be compensated for at the appraiser’s standard hourly rate.
(9) By acceptance and use of this report, the user agrees that any liability for error, omissions or
judgment of the appraisers is limited of the amount of the fee charged for this appraisal. Anyone
acting in reliance upon the opinions, judgments, conclusions or data contained herein, who has the
potential for monetary loss due to this reliance is advised to secure an independent review and
verification of all such conclusions and/or facts. The user agrees to notify the appraiser, prior to
any irrevocable investment decision, of any error which could reasonably be determined from a
thorough and knowledgeable review.
(10) The date of value to which the opinions expressed in this report apply is set forth in the letter of
transmittal. The appraisers assume no responsibility for economic or physical factors occurring at
some later date which may affect the opinions herein stated. The appraisers reserve the right to
make such adjustments to the analyses, opinions and conclusions set forth in this report as may be
required by consideration of additional or more reliable data that may become available.
(11) The projections included in this report are used to assist in the valuation process and are based on
current market conditions and anticipated short term supply and demand factors. Therefore, the
projections are subject to changes in future conditions that cannot be accurately predicted by the
appraisers and could affect the future income or value projections.
(12) The possession of this report, or a copy thereof, does not carry with it the right of publication, nor
may it be used for any purpose other than described in this report, without the previous written
consent of Hendrickson Appraisal Company, Incorporated.
6
HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ● Consultants
CERTIFICATION
The undersigned certify that, to the best of our knowledge and belief:
(1) The statements of fact contained in this report are true and correct.
(2) The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting
conditions and are our personal, impartial and unbiased professional analyses, opinions and conclusions.
(3) We have no present or prospective interest in the property that is the subject of this report and no personal
interest with respect to the parties involved.
(4) We have not performed any services, as appraisers or in any other capacity, regarding the property that is
the subject of this report within the three-year period immediately preceding acceptance of this assignment.
(5) We have no bias with respect to the property that is the subject of this report or to the parties involved with
this assignment.
(6) Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
(7) Our compensation for completing this assignment is not contingent upon the development or reporting of
a predetermined value or direction in value that favors the cause of the client, the amount of the value
opinion, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the
intended use of this appraisal.
(8) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
(9) The undersigned have both made a personal inspection of the property that is the subject of this report.
(10) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representative.
(11) As of the date of this report, Ted G. Hendrickson, MAI, has completed the continuing education program
for Designated Members of the Appraisal Institute. Edward A. Beaver had completed continuing education
requirements for California General Appraiser Certification.
Edward A. Beaver Ted G. Hendrickson, MAI
California Certified General Appraiser California Certified General Appraiser
AG009555 AG004974
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HENDRICKSON APPRAISAL COMPANY, INC. Real Estate Appraisers ● Consultants
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Property Type
The subject is a municipal property owned by the Otay Municipal Water District.
Location
The subjects are located on the west side of Buena Vista Avenue approximately 160 lineal feet south of
Chestnut Street in the Spring Valley community of unincorporated San Diego County.
Assessor’s Parcel Number
Portion of 579-364-17
Owner(s) of Record
Otay Municipal Water District
Site Size/shape
Per the Assessor’s Plat Map the entire holding is 200’ by 127.5’, or 25,500± square feet (0.59 Acre)
comprising four identical legal lots of 6,375± square feet each. Both the entire holding and each of the
individual legal lots are rectangular in shape.
Improvements
The northerly two legal lots comprising the entire Assessor Parcel are improved with a small, Otay
Municipal Water District pump station which is not being appraised as part of this assignment.
Zoning
RS, Residential Suburban, County of San Diego. Minimum lot size is 6,000 square feet.
Land Use
VR-7.3, Village Residential, 7.3 dwelling units per acre.
Highest & Best Use
The Highest and Best Use of the subject legal lots was determined to be to develop each lot with a single
family residence comparable to numerous surrounding properties.
Property Rights Appraised
Fee Simple Interest
Effective Date of Value
May 28, 2019
Value Conclusion
$100,000 per lot, $200,000 total.
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AERIAL PHOTOGRAPH
Aerial view of subject looking generally north. Indicated property boundaries are approximate.
The portion being appraised is the two legal lots at the south end of the property, identified in blue in the photo above..
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INTRODUCTION
Executive Summary
The purpose of this appraisal is to develop an opinion of the market value of the two legal lots making up
the southern half of a four lot parcel of land owned by the Otay Municipal Water District. The subject lots
are located on the west side of Buena Vista Avenue a short distance south of Chestnut Street in the La
Presa section of Spring Valley, an unincorporated community in San Diego County. This appraisal is the
result of a thorough analysis and the findings are reported in an Appraisal Report format which is intended
to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards
of Professional Appraisal Practice. As such, it presents discussions of the data, reasoning, and analyses
that were used in the appraisal process to develop the appraisers’ opinion of value. Factual market data
sheets are included in the addenda to this report, and additional supporting documentation concerning the
data, reasoning, and analyses is retained in the appraisers’ files. The depth of discussion contained in this
report is specific to the needs of the client and for the intended use stated below. The appraisers are not
responsible for unauthorized use of this report.
The client and intended user of this appraisal is the Otay Municipal Water District. The intended use of
this appraisal report is to assist the client in making decisions relating to potential disposition of a portion
of their property.
The entire holding is an approximately 25,500 square foot parcel of residential zoned land. It is identified
with a single Assessor Parcel Number, but actually comprises four individual legal lots, each 6,375±
square feet in size. The northerly two lots are improved with a small, 1,150± pump station. The southerly
two lots are vacant. Our assignment is to develop an opinion of the market value of the two southerly lots
for potential disposition by the client. They were appraised using the Sales Comparison Approach to value.
We have appraised the two lots under the Hypothetical Condition that the Otay Municipal Water District
has completed the necessary steps to secure individual Assessor Parcel Numbers for the two individual
lots. According to Raul Cortes of the San Diego County Assessor’s Mapping Division, since no lot lines
need to be adjusted, all that is required is to go to the downtown Assessor’s Office and fill out the necessary
paperwork. He noted that there is no charge for the service.
Valuation and Inspection Dates
The effective date of appraisal is May 28, 2019.
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Scope of Work
This appraisal assignment requires us to develop an opinion of the market value of the fee simple interest
in two lots of a four lot parcel identified with a single Assessor Parcel Number. The following discussion
summarizes the methodology applied in developing our opinion of the value.
The subject property was inspected and photographed on May 28, 2019. The surrounding environs were
also toured and analyzed.
The appraisers contacted representatives of the San Diego County Planning Department to determine
current zoning and land use designations for the subject property, as well as any proposed changes to land
use under the County’s General Plan Update. Information gleaned there was used in conjunction with
analysis of the current market for residential real estate in the subject area in developing our opinion of
the subject property’s highest and best use. We also contacted representatives of the San Diego County
Assessor’s Mapping division to determine what steps would be necessary to secure individual Assessor
Parcel Numbers for the two southerly vacant lots.
In the valuation process, the subject property's physical characteristics and economic potential were
analyzed in order to develop an opinion of market value. Typically when developing this value, there are
three approaches used to develop an opinion of market value: the Cost Approach, the Sales Comparison
Approach, and the Income Approach. In this case since only land is being valued, the appraisers used only
the Sales Comparison Approach.
The appraisers searched for sales of properties similar to the subject which were then verified through
conversations with parties to the transactions. The final opinion of subject value is supported with the best
available data from the marketplace.
Purpose and Intended Use of the Appraisal
The purpose of this appraisal is to provide an opinion of market value for the subject properties, as of the
effective date of value. It is our understanding that this appraisal will be used in the decision making
process regarding potential disposition of the property.
Definition of Market Value
Market value is the most probable price that a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably,
and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation
of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
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1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable
thereto; and
5. The price represents normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.1
Property Rights Appraised
The property rights appraised are those of the fee simple interest which is defined as:
Absolute ownership unencumbered by any other interest or estate, subject only to the
limitations imposed by the governmental powers of taxation, eminent domain, police
power, and escheat.2
Exposure Time
Exposure time is defined in The Dictionary of Real Estate as:
[The] estimated length of time that the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value on
the effective date of the appraisal. Comment: Exposure time is a retrospective opinion
based on an analysis of past events assuming a competitive and open market.3
The following opinion regarding marketing period for the subject property is based on information
obtained during our market research for this assignment. Based upon numerous discussions with
knowledgeable brokers specializing in the residential market, as well as buyers and sellers of similar
property, it is our view that the marketing period for the subject property would likely be in the range of
six months, assuming the property is marketed at its market value.
Function of the Appraisal
1 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015) PDF e-book.
2 Ibid
3 Ibid.
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The function of the appraisal is to assist the client in decision making regarding possible disposition of a
portion of their property.
Intended Users of this Report
This appraisal is intended for the sole use of the client for the stated function and use. The use of the
appraisal by anyone other than the stated intended user and for any other use than the stated intended use
is prohibited. The appraisers are not responsible for unauthorized distribution or use of the report.
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AREA MAP
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NEIGHBORHOOD MAP
`
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AREA DESCRIPTION
San Diego County is located in the extreme southwest corner of the continental United States, adjacent to
the international boundary with Mexico. The Pacific Ocean forms the western boundary, the Orange and
Riverside County lines form the northern boundary and the Imperial County line forms the eastern
boundary, approximately 85 miles inland from the ocean.
The subject property is located in the La Presa section of the Spring Valley community of unincorporated
San Diego County. The Spring Valley Community Planning Area is a relatively heavily populated
suburban environment that covers approximately eleven square miles. The predominant land use in the
area is single family residential, but since the 1970’s denser housing areas have been developed. The
highest densities are currently on Kenwood Dr., Jamacha Rd., and Canyon Rd.
There are over 1,000 businesses in the community from small, family-owned enterprises to heavy industry
in Spring Valley. Some areas of the community were developed prior to implementation of current zoning
and land use regulations which resulted in some intermingling of industrial and single family residential
development. The area has seen a recent increase in the number of higher density properties intended for
lower income individuals.
The largest portion of the Spring Valley Planning Area is single-family residential homes. There are two
primary business areas. First is the former downtown area on Bancroft Dr. from SR-94 south to
Sweetwater Rd. The other is in the area known as La Presa in the south eastern portion of the CPA from
approximately Omega St. south to Sweetwater Rd. Other specific neighborhoods include Bancroft,
Brookside, Spring Valley, Lakeside, Dictionary Hill, Sweetwater Village, Rancho San Diego and La
Presa.
The Spring Valley Community is served by two existing freeways: State Route 94 which is a major east-
west artery in the northern portion of the community, and State Route 125 which runs generally north-
south along the western side of the community. Other four lane roads in the community include
Sweetwater Road, Paradise Valley Road, Elkelton Boulevard and Jamacha Boulevard. Public
transportation is provided by the Metropolitan Transit System which has several bus routes serving the
community. The San Diego Trolley also has convenient stops in La Mesa and Lemon Grove, a short
distance to the north and west.
There are currently four developed public parks in the Spring Valley Community. Utility services are
provided as follows: water in the subject portion of Spring Valley is provided by the Otay Water District;
sewer service is primarily provided by the County with small pockets, mainly in hilly areas, requiring
septic systems; gas and electricity are provided by SDG&E; telephone and cable television services are
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available from a variety of carriers. Police protection is provided by the San Diego County Sheriff’s
Department with the California Highway Patrol providing enforcement on state highways and County
public roads; fire protection is the responsibility of the San Miguel Consolidated Fire Protection District.
As of January 1, 2017 the population of the Spring Valley/Casa de Oro community was 97,138, or
approximately 2.7% of the total County population. As of February 2019, the unemployment rate in Spring
Valley was 5.0%, higher than the 4.2% for the State of California, 3.5% for San Diego County and 3.8%
for the nation as a whole.
The subject's immediate location is on the west side of Buena Vista Avenue a short distance south of its
intersection with Chestnut Street. It is in the La Presa section of Spring Valley, a primarily residential area
known as Dictionary Hill. The entire surrounding area is built out with residential development of varying
ages. The high concentration of residential properties in the immediate area benefits both retail and office
properties in the area.
The market for residential properties in the Spring Valley Area has been improving for the last several
years. The appraisers reviewed sales of single family residences in the subjects’ zip code from May 2017
to present as reported in the San Diego County Multiple Listing Service. Only sales of homes between
1,000 SF and 2,000 SF were included in the sample as that is the size range most prevalent in the area.
The sales were analyzed on the basis of dollars per square foot of living area in order to minimize the
effect of homes of different sizes. The data sample was slightly under 300 sales in size, sufficient to yield
credible results. Analysis of those sales indicated that single family residence selling prices have increased
at a rate of approximately 3.5% per year since the beginning of May 2917.
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PLAT MAP
Only the two lots being appraised are highlighted above.
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SITE DESCRIPTION
Location – The subject lots are located on the west side of Buena Vista Avenue approximately 260 feet
south of Chestnut Street in the La Presa section of the Spring Valley community of unincorporated San
Diego County.
Owner – Otay Municipal Water District
APN – Currently a portion of 579-364-17. We are appraising the subject lots under the hypothetical
condition that the owner has completed the necessary process with the San Diego County Assessor’s
Office to have individual Assessor Parcel Numbers assigned to the two subject lots.
Legal Description – The following legal description for the entire subject holding was extracted from a
Preliminary Title Report provided by the client. The subject properties are Lots 18 and 19 identified below.
Real property in the City of (unincorporated area), County of San Diego, State of California, described as
follows:
Lots 16, 17, 18 and 19 in Block 23 of East San Diego Villa Heights, according to Map Thereof No. 1317
filed in the Office of the Recorder of San Diego County.
Together with that portion of the alley adjoining said property on the west, vacated and abandoned by
Instruments Recorded November 13, 1980 as Instrument No. 80-382405 and 80-382406, both of Official
Records.
Access – The properties are accessible from either direction on Buena Vista Avenue.
Size and Shape – County Assessor’s data and other public records indicate that the two subject lots are
both 50’ x 127.5’, or 6,375 square feet in size. They are both rectangular in shape. Please refer to the plat
map.
Zoning and Land Use – Both lots are zoned RS, Residential Suburban, by the County of San Diego and
are in an area of 6,000 square foot minimum lot size. The County land use designation is VR-7.3, Village
Residential with a maximum density of 7.3 dwelling units per acre. Both lots are legal and conforming.
Topography – The lots are somewhat sloping with up banks on their west sides. There is sufficient level
area on each of them to permit development with a residence similar to those on surrounding sites.
Drainage – Based on our site inspection, the properties appear to have adequate drainage.
Development Status – The two subject lots are currently vacant.
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Utilities – All typical utilities are available and operating in the subject area.
Street Improvements – Buena Vista Avenue is a two lane asphalt paved residential street in the area of
the subjects. There are concrete curbs and gutters on both sides of the street but no sidewalks along the
subject frontage.
Easements/Encumbrances – The appraisers were provided a title report to review. The report identified
only two easements which encumber portions of the two subject lots, both for utilities and both at the
extreme western end of the lots. These easements are not considered to limit development of the subject
to its highest and best use.
Soil Conditions - No soils and geotechnical investigation report was provided by the client. Our site
inspection revealed no visible evidence of soils subsidence or other adverse soil conditions. It is assumed
as a limiting condition of this report that the load bearing capacity of the site is similar to other developed
properties in the vicinity and adequate to support any legal improvements that might be proposed for the
property.
Flood Hazard – Flood Insurance Rate Map 06073C1930G (map not printed), dated May 16, 2012,
indicates that the subject property is in White Zone X. White Zone X is identified as areas outside the 500
year flood plain.
Environmental Issues – Both subject lots are vacant, mapped residential lots surrounded by improved
residential properties. There are no known environmental issues.
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SUBJECT PHOTOGRAPHS
Lot 18 viewed from across Buena Vista Drive.
Lot 18 viewed from the fence line.
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SUBJECT PHOTOGRAPHS
Lot 19 viewed from across Buena Vista Drive.
Lot 19 viewed from the fence line.
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SUBJECT PHOTOGRAPHS
Looking north on Buena Vista Drive. The subjects are to the left.
Looking south on Buena Vista Drive. The subjects are to the right.
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Property Data
Use History – The entire holding was formerly the site of a large water storage tank. Review of historic
aerial photos using Google Earth indicates that at some point between September 1996 and June 2002 the
tank was removed and the existing pump station was constructed. The tank had occupied portions of both
of the subject lots, but the lots appear to have been vacant since it was removed.
Sales History – Information provided by the client states that the four lot holding was acquired by the
current owner on December 31, 1959. There have been no known vesting changes since that date.
Property Taxes/Assessed Values
The subject lots are owned by a municipal water district and are not taxed.
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HIGHEST AND BEST USE
As used in this report, Highest and Best Use is defined as:
That reasonable and probable use which will support the highest present value as of the date of the
appraisal, and
That use from among reasonably probable and legal alternative uses, found to be physically possible,
appropriately supported, financially feasible, and which results in the highest land value.
There are two distinct analyses in the highest and best use process; the highest and best use analysis of the
site as if it were vacant, and the highest and best use analysis of the site as improved. Following is a brief
summary of the subject’s highest and best use as vacant and improved.
The determination of the highest and best use of a property either improved or vacant, must consider the
following four criteria. Is the potential use: (1) legally permissible, (2) physically possible, (3) financially
feasible, and (4) maximally productive. These criteria should be considered in the above order, as
qualification under the latter criteria would be irrelevant if a use is physically or legally prohibited.
As If Vacant:
The subject properties are two legal lots that make up the southern half of a single Assessor’s Parcel
comprising four identical legal lots. Per the Assessor Plat Map, each lot is 50’ x 127.5’, or 6,375 square
feet in size, and both are rectangular in shape offering good utility. They are interior parcels on the west
side of Buena Vista Avenue a short distance south of its intersection with Chestnut Street in the La Presa
area of Spring Valley. Both lots have somewhat sloping topography and are slightly above the grade of
Buena Vista Avenue. The entire area is zoned RS, Residential Suburban, by the County of San Diego and
are in an area requiring 6,000 square foot minimum lot sizes. The zoning is in conformance with the
Village Residential 7.3 land use designation. The lots are in a large, well established residential
subdivision in the La Presa portion of Spring Valley. The entire surrounding area comprises generally
older single family residences on 6,000 square foot minimum lots.
Developing each of the lots with a single family residence would be legally permissible, physically
possible, financially feasible, maximally productive and is considered to be the highest and best use of the
two subject properties.
As Improved:
The two subject lots are vacant.
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VALUATION OF SUBJECT PROPERTY
Typically when developing an opinion of the market value of a property, three approaches to value are
used - the Cost Approach, the Sales Comparison Approach and the Income Approach.
The Cost Approach is useful in valuing new or proposed improvements which represent the Highest and
Best Use of the site, or special use properties that are not frequently exchanged in the market. This
valuation method relates the value of the subject property to the cost of a similar site and the reproduction
cost of the improvements. However, the subject properties are vacant residential lots and the Cost
Approach is not relevant.
The Sales Comparison Approach compares the subject property with similar properties which have sold
recently. Comparison of the similarities and dissimilarities of comparable properties to the subject
provides an indication of value that is derived directly from the actions of buyers and sellers in the
marketplace. In this analysis, the Sales Comparison Approach will be used to develop an opinion of the
market value of the subject properties.
The Income Approach analyzes the economic characteristics of a property through its ability to produce
income. This approach generally involves Direct Capitalization of a property’s one year stabilized net
operating income using a market derived overall capitalization rate. As with the Cost Approach, the
subject properties are vacant lots and the Income Approach is not relevant.
The appraisers searched for recent sales, escrows and listings of similar properties in the subject area. Data
sources included the San Diego County Multiple Listing Service, public records, and conversations with
brokers active in the subject market. Detailed write-ups of each of the comparables used are contained in
the addendum to this appraisal report.
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SALES COMPARISON APPROACH
The Sales Comparison Approach is based on the principal of substitution, which implies that a prudent
buyer would pay no more to purchase a particular property than it would cost to obtain a comparable
substitute property. A common unit of comparison used in this approach for vacant residential lots is the
total selling price per lot. The Sales Comparison Approach is a typical method of analysis that a potential
investor or owner/user purchaser in a property of this type would use in the decision process.
The subject properties are vacant, conforming legal residential lots. They are both 6,375± square feet in
size. They are somewhat sloping lots with up banks at the back of each lot, but have ample developable
area to be improved with single family residences similar to many other lots in the immediate area.
The appraisers conducted a search for listings, pending sales, and recent sales of similar residential lots.
The market data research included the use of published sales information services, public records, and
interviews with buyers, sellers, and other real estate professionals active in the commercial retail segment
of the real estate market.
Our search focused on sales of vacant residential lots in the subject area. Since the subject area was built
out many years age, there were only limited recent sales of vacant lots in the vicinity. We located a total
of five sales considered suitable for developing an opinion of the market value of the subject properties.
All are located within approximately three miles of the subject, four are in Spring Valley and one is in
neighboring La Mesa. One sale occurred in May 2017, the other four in 2019. They bracket the subject
somewhat widely in selling price and physical characteristics and are considered to be the most reliable
available indicators of subject market value.
COMPARABILITY FACTORS
The following discussion identifies the comparability factors that were considered by the appraisers in the
valuation process of the subject property.
Market Conditions
There were insufficient sales of vacant land parcels in the subject area to do meaningful selling price trend
analysis. As an alternative, since land prices generally tend to follow trends in selling prices of improved
residential properties, we reviewed sales of single family homes in the subject zip code for the period from
May 2017 to present. We limited the search to homes built since 1975 and between 1,000 SF and 2,000
SF as these are considered most representative of the type of home expected to be constructed on the
subject properties. Nearly 300 sales were analyzed on a dollars per square foot basis in order to minimize
the effect of differing home sizes. The date range includes the recording dates of all five comparable sales.
Analysis of the data indicated that the trend in selling price increased approximately 6.95% for the two
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years of the analysis, or approximately 3.5% per year. These trends were discussed with brokers and other
market participants during confirmation of data used in this and other appraisal reports. While individual
opinions varied to some extent, the overall consensus of these individuals tends to support the results of
our sales data analysis.
Based on our analysis of improved residential sales reported by the San Diego County MLS, in
conjunction with numerous conversations with brokers, buyers and/or sellers involved with sales of
residential land properties, we have concluded that 3.5% per year, or 0.29% per month, is an appropriate
rate at which to adjust sales for differing market conditions as of the date of sale.
Location
The subject property is located in the La Presa area of Spring Valley. The subject property’s immediate
area located on Buena Vista Drive north of Apple Street is a long established residential neighborhood
with basic quality housing. Two of the sales are also in the La Presa area and are considered similar in
location to the subject. The other three are all considered superior in varying degrees to the subject in
terms of their location. Consideration was given to the comparables’ locations as they compare to the
subject property’s location.
Property Size
When considering properties of differing size on a per lot basis, larger lots are superior to smaller lots.
Four of the sale properties are larger than the subjects and are considered superior to the subject in that
regard.
Site Utility
The subject properties are rectangular in shape and somewhat sloping, considered to be average in site
utility. Two of the sales are considered similar in utility. The other three are considered inferior to the
subject in utility, two due to steep terrain and one due to a drainage ditch on the property.
View
Due to the topography in the area the subject property offers some view of the area and hills to the east.
Two of the sales are considered to have inferior view potential, one is generally similar, and two are
superior in varying degrees due to steep topography of the sites.
Access
The subject is accessible from either direction on Buena Vista Drive. Two of the subjects are accessible
only via a long, narrow easement road. The other three comparable sales are considered generally similar
to the subject in access.
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Zoning/Land Use
The subject properties have zoning and land use classifications intended for single family development.
Four of the sales are similar in this regard. The fifth is zoned for multiple residential use but could
accommodate a maximum of only two units, or one SFR.
Offsite Improvements
The subject street has partial offsites including concrete curbs and gutters, but no sidewalks at the subject
location. Three of the sales are on easement roads with no county offsite improvements. The other two
have partial offsites.
Development Potential/Status
The subject properties are vacant, individual residential lots with the potential for development with one
single family residence each. All five comparable sales are considered similar to the subjects in this regard.
The table on the following page summarizes the land sales, and the considerations and adjustments that
were made. A detailed discussion follows regarding the comparability of each sale to the subject with
respect to property rights, financing, conditions of sale, market conditions on the date of sale, geographic
location, site utility, view potential, access, zoning, offsites and development potential.
.
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SUBJECT SALE NO. 1 SALE NO. 2 SALE NO. 3 SALE NO. 4 SALE NO. 5
Property Location Buena Vista Avenue West of Gillespie Drive West of Gillespie Drive 8657 Golf Drive 9360 Hollyhock Road High Street
S of Chestnub Street South of Jamacha Road South of Jamacha Road at Waite Drive
Spring Valley Spring Valley (La Presa)Spring Valley (La Presa)Spring Valley Spring Valley (Casa de Oro)La Mesa
Owner/Seller Otay Water District Jackson Family Trust Jackson Family Trust M&M Clint Cable Deutsche Bank Socal Metro Holdings
Buyer N/A Aaron Leavitt Aaron Leavitt Christopher Welton Murphy/Pechacek Rehouse LLC
Assessor Parcel Number(s)Por 579-364-17 584-510-20 584-510-19 499-361-19 500-160-14 475-352-14
Recording Date 03/12/19 03/07/19 03/06/19 01/25/19 04/28/17
Document No.0088562 0081756 0080628 0028612 0192134
Land Area (SF)6,375 13,454 14,037 18,000 18,146 6,098
Site Utility (Shape & Topo)Rectangular/sloping Rectangular/level Rectangular/level Steep slope w/tiers Rectangular/gentle slope Steep slope
View Some distant hills None None Panoramic Some Area Good area to S and W
Zoning/Land Use RS/VR-7.3 RS/VR-7.3, SD County RS/VR-7.3, SD County RS/VR-2.9, SD County RS/VR-4.3, SD County R3/Multi Res, La Mesa
Minimum lot size 6,000 6,000 6,000 15,000 10,000 6,098
Access 1 Street Easement road Easement road 1 Street End of private road 1 Street
Offsites Curbs/gutters only.Partial on Gillespie Partial on Gillespie Paved road only Paved road only Partial offsites
Devel Status Vacant legal lot Pomegranite orchard Pomegranite orchard Vacant land Vacant land Vacant land
Devel Potential/Status 1 SFR 1 SFR 1 SFR 1 SFR 1 SFR 1 SFR or 2 Apartment
Proposed Use 1 SFR 1 SFR 1 SFR 1 SFR Not disclosed
Highest & Best Use SFR development.Residential Residential Residential Residential Residential
Comments
The subjects are two
adjacent, identical legal
lots which are currently
portions of APN 579-364-
17.
This is a generally
rectangular, essentially
level lot partially
improved with a
pomegranite orchard. Lot
cannot be split due to
narrow easement access
road.
This is a generally
rectangular, essentially
level lot improved with a
pomegranite orchard. Lot
cannot be split due to
narrow easement access
road.
This is a steeply sloping
residential lot in the La
Mesa Country Club section
of Spring Valley. Sold with
plans for a 3,300± SF house.
This is a generally
rectangular, sloping site at
the end of a private road.
There is no private road
maintenance agreement.
This is an irregular
shaped, steeply sloping lot
a short distance from SR-
94. Permitted uses include
1 SFR or 2 apartments.
Topo limits site utility.
Price $80,000 $50,000 $161,000 $155,000 $94,000
Conditions of Sale/Market:
Property Rights Fee Simple
Subtotal $80,000 $50,000 $161,000 $155,000 $94,000
Financing Cash Equivalent
Subtotal $80,000 $50,000 $161,000 $155,000 $94,000
Condition of Sale Market
Subtotal $80,000 $50,000 $161,000 $155,000 $94,000
Market Conditions Stable/Improving $0 $0 $0 $0 $0
Market Condition Adj. Price/SF $80,800 $50,500 $162,610 $156,550 $100,580
Location Spring Valley Similar Similar Superior Consid Superior Superior
Site Size (Ac)6,375 Superior Superior Superior Superior Similar
Site Utility (Shape & Topo)Rectangular/sloping Similar Consid Inferior Inferior Similar Inferior
View Some distant hills Inferior Inferior Consid Superior Similar Superior
Access 1 Street Inferior Inferior Similar Similar Similar
Zoning/Land Use RS/VR-7.3 Similar Similar Similar Similar Similar
Offsites Full Offsites Slgt Inferior Slgt Inferior Similar Slgt Inferior Similar
Devel Potential/Status SFR development.Similar Similar Superior Similar Similar
OVERALL COMPARABILITY Inferior Substantially Inferior Substantially Superior Substantially Superior Sim to Slgt Superior
COMPARABLE LAND SALES SUMMARY AND ANALYSIS
COMPARABILITY ANALYSIS
PHYSICAL CHARACTERISTICS
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Land Sale No. 1 W of Gillespie Drive S of Jamacha Road, Spring Valley, CA
This is the March 2019 sale of an approximately
13,454 square foot vacant residential zoned lot
located in the La Presa area of Spring Valley. The
selling price was $80,000. It was a cash to seller
transaction. It is a generally level, rectangular lot
situated at the west end of a narrow easement road
extending west from Gillespie Drive. It is accessible
only from the east on the easement road across three
other properties in the area. It is zoned RS
(Residential Suburban) by the County of San Diego
with a minimum lot size of 6,000 square feet. It has a Land Use classification of VR-7.3 (Village
Residential, 7.3 units per acre). The zoning and land use classifications suggest that this property could
be split into two legal lots, however, the confirming source stated that the County will not permit it to be
split because the easement access road is too narrow. As of the date of sale the southern half of this sale
was improved with a pomegranate grove. The buyer of this property reportedly plans to build an SFR.
This sale was adjusted slightly upward to $80,800 to account for differing market conditions as of the
date of sale.
This sale comparable is considered superior to the subject relative to its larger lot size. It is inferior to the
subject in terms of its lack of view amenity, its easement road access and slightly inferior as to offsite
improvements. It is considered generally similar to the subject in other respects including its La Presa
location, site utility, zoning and development potential. Overall, this comparable sale is considered
inferior to the subject and indicates a price greater than $80,800 for the subject property.
Land Sale No. 2 W of Gillespie Drive S of Jamacha Road, Spring Valley, CA
This is the March 2019 sale of an approximately
14,037 square foot vacant residential zoned lot
located in the La Presa area of Spring Valley. The
selling price was $50,000. It was a cash to seller
transaction. It is adjacent to Sale 1 above and was
purchased by the same buyer at approximately the
same time. The selling price of this property was
reduced by $30,000 due to anticipated remediation
costs of a drainage ditch which crosses the property.
The confirming source noted that, absent the ditch it
would have sold for $80,000. It is a generally level, rectangular lot situated at the west end of a narrow
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easement road extending west from Gillespie Drive. It is accessible only from the east on the easement
road across three other properties in the area. It is zoned RS (Residential Suburban) by the County of San
Diego with a minimum lot size of 6,000 square feet. It has a Land Use classification of VR-7.3 (Village
Residential, 7.3 units per acre). The zoning and land use classifications suggest that this property could
be split into two legal lots, however, the confirming source stated that the County will not permit it to be
split because the easement access road is too narrow. As of the date of sale this property was improved
with a pomegranate grove. The buyer reportedly plans to build an SFR. This sale was adjusted slightly
upward to $50,500 to account for differing market conditions as of the date of sale.
This sale comparable is considered superior to the subject relative to its larger lot size. It is considerably
inferior to the subject in terms of its site utility (remedial cost of curing the drainage ditch), inferior as to
lack of view amenity, its easement road access and slightly inferior as to offsite improvements. It is
considered generally similar to the subject in other respects including its La Presa location and zoning..
Overall, this comparable sale is considered substantially inferior to the subject and indicates a price
substantially more than $50,500 for the subject property.
Land Sale No. 3 8657 Golf Drive, Spring Valley, CA
This is the March 2019 sale of an approximately
18,000 square foot vacant residential zoned lot
located in the La Mesa Country Club neighborhood of
northern Spring Valley. The selling price was
$161,000 in a cash to seller transaction. The lot slopes
steeply upward from Golf Drive and has a level pad
area near the top of the site. It is generally rectangular
in shape. It is an interior lot which is accessible from
either direction on Golf Drive, a two lane, asphalt
paved road with asphalt curbs but no other offsites.
The property is zoned RS (Residential Suburban) by the County of San Diego with a minimum lot size
of 15,000 square feet. It has a Land Use designation of VR-2.9 (Village Residential, 2.9 dwelling units
per acre). The confirming source noted that the seller had some preliminary work toward development
and that water was in, sewer was connected and electricity and gas were present. He also noted that there
were plans available for an approximately 3,300 SF residence, but that the buyer opted not to use them.
This sale was adjusted slightly upward to $162,610 to account for differing market conditions as of the
date of sale.
This sale comparable is considered superior to the subject in terms of its location in northern Spring
Valley and its development status with utility connections. It is superior in overall lot size and
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considerably superior as a result of its panoramic view potential. It is inferior to the subject relative to its
steeply sloping site utility. It is considered generally similar to the subject in other respects including,
access, zoning and offsites. Overall, this sale is considered substantially superior to the subject and
indicates a subject value of substantially less than $162,610.
Land Sale No. 4 9360 Hollyhock Road, Spring Valley, CA
This is the January 2019 sale of an approximately
18,146 square foot vacant residential zoned lot
located in the Casa de Oro neighborhood of northern
Spring Valley. The selling price was $155,000 in a
cash to seller transaction. This was an REO sale that
was originally listed for $117,000, but the confirming
source stated that they received multiple offers for the
property and it eventually sold for the $155,000 noted
above. The broker indicated that $155,000 was
generally representative of its market value. The lot
slopes gently upward from Hollyhock Lane, a private road extending east from Hollyhock Road. It is
generally rectangular in shape. It is an interior lot which is accessible only from the west on Hollyhock
Lane, an unmaintained road with no road maintenance agreement between neighbors. The property is
zoned RS (Residential Suburban) by the County of San Diego with a minimum lot size of 10,000 square
feet. It has a Land Use designation of VR-4.3 (Village Residential, 4.3 dwelling units per acre). This sale
was adjusted slightly upward to $156,550 to account for differing market conditions as of the date of sale.
This sale comparable is considerably superior to the subject in terms of its location in the Casa de Oro
section of Spring Valley and slightly superior in overall lot size. It is slightly inferior to the subject relative
to its offsites. It is considered generally similar to the subject in other respects including site utility, view
potential, access and zoning. Overall, this sale is considered substantially superior to the subject and
indicates a subject value of substantially less than $156,550.
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Land Sale No. 5 High Street at Waite Drive, La Mesa, CA
This is the April 2017 sale of an approximately 6,098
square foot vacant residential zoned lot located at the
corner of High Street and Waite Drive in the City of
La Mesa. The selling price was $94,000 in a cash to
seller transaction. The lot slopes steeply upward from
High Street and is irregular in shape. There is an
approximately 3,700 square foot generally level pad
area at the east side of the property. It is a corner lot
but is accessible only from High Street, a two lane,
asphalt paved road with concrete curbs and gutters but
sidewalks only on one side of the street. The property is zoned R3 (Multiple Unit Residential) by the City
of La Mesa with a minimum net lot size of 2,420 square feet per dwelling unit. It has a Land Use
designation of Multi-Residential. Development standards would permit development of this property with
either single family or multi family improvements. However, given that substantial grading would be
required to provide the 4,840 net square feet needed for two multi-family units, it is considered more
likely that the property will eventually be improved with a single family dwelling. This sale was adjusted
upward to $100,580 to account for differing market conditions as of the date of sale.
This sale comparable is considered superior to the subject in terms of its location in La Mesa and superior
relative to its view potential. It is inferior to the subject relative to its steeply sloping site utility. It is
considered generally similar to the subject in other respects including site size, access, zoning, offsites
and development potential. Overall, this sale is considered similar to slightly superior to the subject and
indicates a subject value in the range of $100,580.
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The following table summarizes the comparability of the five comparable sales to the subject property,
from the most inferior to the most superior.
LAND SALE COMPARABLES
Comp # Address Sale Date Size (SF) Sale Price* Comparability
2 W of Gillespie Drive, Spring Valley 03/07/19 14,037 $50,500 Substantially Inferior
1 W of Gillespie Drive, Spring Valley 03/12/19 13,454 $80,800 Inferior
Subj Buena Vista Dr S of Chestnut, SV $100,000
5 High Street @ Waite Drive, La Mesa 04/28/17 6,098 $100,580 Similar to Slightly Superior
4 9360 Hollyhock Road, Casa de Oro 01/25/19 18,146 $156,550 Substantially Superior
3 8657 Golf Drive, Spring Valley 03/06/19 18,000 $162,610 Substantially Superior
* Market Conditions adjusted price per square foot
After consideration of economic, physical, and locational differences which have an influence on value,
the comparable sale properties bracket the subjects’ market value, albeit widely, due to a lack of similar
lot sales in the area. Comparables 1 and 5 were considered most similar and given greatest weight in our
analysis. These sales bracket the subject value in the range of approximately $80,800 to $100,580 with
Sale 5 requiring the fewest considerations for differing physical characteristics. Based on the bracketing
effect of Sales 1 and 5, with support from the other sales and discussions with knowledgeable sources in
the area, it is our opinion that the value of the subject properties is $100,000 per lot.
Indicated Value 2 Lots x $100,000/Lot = $200,000
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MARKET DATA ADDENDUM
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LAND SALES MAP
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Land Sale 1
Location: West of Gillespie Drive South of Jamacha Road, Spring Valley, CA.
APN: 584-510-20
Size & Shape: 13,454 square feet, rectangular in shape.
Topography: Generally level.
View: None.
Zoning: RS (Residential Suburban) San Diego County, 6,000 square foot minimum lots.
Utilities: Typical utilities are available in the area.
Access/Offsites: Accessible via an easement access road extending west from Gillespie Drive.
Improvements: None at the time of sale.
Sale Price: $80,000
Terms: Cash to seller.
Transaction: Document Number: 2019-0088562
Recording Date: March 12, 2019
Transfer Tax: $88.00, Full Value
Buyer: Aaron Leavitt
Seller: Jackson Family Trust
Confirmed by: Brian Turner, selling agent.
Comments: At the time of sale, the southern half of this property was used as a pomegranate
orchard and the northern half was vacant. Despite being large enough to be split into
two residential lots, the County will not permit the split because the easement access
road is too narrow. The buyer reportedly intends to construct a single family residence
on the lot. As of our inspection, no work had commenced.
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Land Sale 1
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Land Sale 2
Location: West of Gillespie Drive South of Jamacha Road, Spring Valley, CA.
APN: 584-510-19
Size & Shape: 14,037 square feet, rectangular in shape.
Topography: Generally level.
View: None.
Zoning: RS (Residential Suburban) San Diego County, 6,000 square foot minimum lots.
Utilities: Typical utilities are available in the area.
Access/Offsites: Accessible via an easement access road extending west from Gillespie Drive.
Improvements: None at the time of sale.
Sale Price: $50,000
Terms: Cash to seller.
Transaction: Document Number: 2019-0081756
Recording Date: March 7, 2019
Transfer Tax: $55.00, Full Value
Buyer: Aaron Leavitt
Seller: Jackson Family Trust
Confirmed by: Brian Turner, selling agent.
Comments: At the time of sale, this property was used as a pomegranate orchard. Despite being
large enough to be split into two residential lots, the County will not permit the split
because the easement access road is too narrow. This sale is adjacent to Sale 1 above.
Its selling price was discounted $30,000 to offset anticipated costs of remediating a
drainage ditch that crosses the property. The selling agent stated that, absent the ditch,
it would have sold for $80,000. The buyer reportedly intends to construct a single
family residence on the lot. As of our inspection, no work had commenced.
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Land Sale 2
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Land Sale 3
Location: 8657 Golf Drive, Spring Valley, CA
APN: 499-361-19
Size & Shape: Approximately 18,000 square feet, generally rectangular in shape.
Topography: Steeply sloping site with a generally level pad area at the top.
View: Panoramic view to north and west.
Zoning: RS (Residential Suburban), County of San Diego, 15,000 SF minimum lot size.
Utilities: Typical utilities are operating to the site.
Access/Offsites: This property is accessible from either direction on Golf Drive, a two lane, asphalt
paved road.
Improvements: None, the site was vacant as of the date of sale.
Sale Price: $161,000
Terms: Cash to seller.
Transaction: Document Number: 2019-0080628
Recording Date: March 6, 2019
Transfer Tax: $177.10, full value.
Buyer: Christopher Welton
Seller: Clint & Laurie Cable
Confirmed by: Adam Stone, selling agent.
Comments: This sale property is located in the La Mesa Country Club neighborhood of Spring
Valley. It is a steeply sloping site with a generally level pad area at the top. Since the
building pad area is at the top of the site, the property offers a sweeping view to the
north and west. According to the selling agent, the seller had completed some
preliminary development steps including utility connections. The buyer reportedly
intends to construct a single family residence on the property.
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Land Sale 3
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Land Sale 4
Location: 9360 Hollyhock Road, Spring Valley, CA
APN: 500-160-14
Size & Shape: Approximately 18,146 square feet, generally rectangular in shape.
Topography: Gently sloping.
Zoning: RS (Residential Suburban), County of San Diego, 10,000 SF minimum lot size.
Utilities: Typical utilities are available.
Access/Offsites: This property is accessible via Hollyhock Lane, an unmaintained private road with no
road maintenance agreement between neighbors.
Improvements: None, this property was vacant as of the date of sale.
Sale Price: $155,000
Terms: Cash to seller.
Transaction: Document Number: 2019-0028612
Recording Date: January 25, 2019
Transfer Tax: $170.50, full value.
Buyer: Patrick Murphy
Seller: Deutsche Bank
Confirmed by: Scott Varley, selling agent.
Comments: This was a previously developed property from which the improvements were
removed in early 2014. It is a gently sloping property situated at the end of a poorly
maintained private road extending generally east from Hollyhock Road. It was also
an REO sale, originally listed for $117,000, but the selling agent noted that they
received multiple offers which drove the price up to $155,000. The agent noted that
the final price was generally representative of his opinion of market value of the
property. The buyer reportedly intends to construct a residence on the site. As of our
inspection no work had commenced.
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Land Sale 4
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Land Sale 5
Location: High Street at Waite Drive, La Mesa, CA
APN: 475-352-14
Size & Shape: Approximately 6,098 square feet, irregular in shape.
Topography: Steeply sloping up from the street with a generally level pad area at the top.
Zoning: R3 (Multi Unit Residential), City of La Mesa.
Utilities: Typical utilities are available.
Access/Offsites: This property is at the corner of High Street and Waite Drive but is accessible only
from High Street.
Improvements: None, this property was vacant as of the date of sale.
Sale Price: $94,000
Terms: Cash to seller.
Transaction: Document Number: 2017-0192134
Recording Date: April 28, 2017
Transfer Tax: $103.40, full value.
Buyer: Rehouse LLC
Seller: Socal Metro Holdings LLC
Confirmed by: Public records.
Comments: This is a small, steeply sloping lot at the intersection of High Street and Waite Drive
in La Mesa. There is an approximately 3,700 square foot generally level pad area at
the top of the lot. The R3 zoning requires 2,420 net square feet per dwelling unit for
multiple units. Thus, significant grading would be required to develop two dwelling
units on the property. It is considered more likely that one single family residence will
be developed. We were unable to contact the buyer to determine his intentions for the
property.
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Land Sale 5
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TITLE REPORT
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GENERAL ADDENDA
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HENDRICKSON APPRAISAL COMPANY, INC.
Hendrickson Appraisal Company, Inc. is a midsized appraisal firm that was incorporated in 1986
to provide professional consultation on matters relating to valuation of real estate and real property.
The firm specializes in valuation of commercial, industrial, entitled and unentitled vacant land,
and subdivision property.
Appraisers within the firm provide valuation consultation and expert witness testimony relating to
several legal matters involving: eminent domain property acquisitions, estate matters, real property
misrepresentation matters and partnership disputes, bankruptcy and foreclosure matters, and
diminution of value matters involving construction defects, soils subsidence and hazardous waste
issues. In addition to court testimony, arbitration and mediation services are provided to facilitate
settlement on valuation issues, as appropriate.
The firm specializes in appraisal of office buildings, retail centers, industrial property, restaurants,
marinas, multi-use property, special use property, large entitled and unentitled vacant land
holdings, many of which involve sensitive habitat issues, and residential subdivision and golf
course oriented planned residential developments. Detailed sensitivity analysis, including
discounted cash flow analysis on income producing property (offices, retail and industrial) and
multi-phased residential subdivision cash flow analysis, is a specialty area of the firm.
In addition to valuation of property based upon their highest and best use as developed from market
analysis, Hendrickson Appraisal Company, Inc. provides consulting services relating to alternative
uses for various property, under differing use scenarios.
Following is a brief summary of the organization of the company. Ted G. Hendrickson, MAI, the
principal valuation expert within the firm has over 30 years of appraisal experience, primarily
oriented toward commercial and subdivision appraising. He has extensive expert witness
experience having testified many times in arbitration and court proceedings. Associate appraisers
in the company are either MAI designated or advanced candidates for the MAI designation and
are State of California Certified General appraisers. The average experience level of the firm's
staff appraisers is 15 years, with primary emphasis on appraisal of all types of commercial
property, large land holdings and residential subdivisions at various densities.
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TED G. HENDRICKSON, MAI PROFESSIONAL QUALIFICATIONS
Ted G. Hendrickson, MAI is the president and principal valuation expert of Hendrickson Appraisal
Company, Inc., a midsized appraisal firm specializing in valuation of commercial, industrial, large
vacant land holdings and land subdivision property. Mr. Hendrickson has over 30 years of
experience as a real estate appraiser and consultant, primarily specializing in valuation of
commercial property.
Mr. Hendrickson is a qualified expert witness, having given testimony on several occasions in
Superior Court and in the Federal Court system. Mr. Hendrickson has testified in several cases
involving: eminent domain property acquisitions, estate matters, real property misrepresentation
matters and partnership disputes, bankruptcy and foreclosure matters, and diminution of value
matters involving construction defects, soils subsidence and hazardous waste issues. Mr.
Hendrickson has also served as valuation expert and arbitrator in arbitration hearings involving
property valuation and lease negotiations with the Port of San Diego and in other public and private
corporate real estate matters.
Mr. Hendrickson's appraisal experience includes valuation of the following property types:
commercial, retail, office, industrial, multi-residential, special use property such as food
processing facilities, tidelands property including marinas, hotels and restaurants, vacant
unentitled land with sensitive habitat issues, and subdivision land with detailed highest and best
use analysis. He has extensive experience in valuing large office buildings and other income
producing property, as well as land subdivisions (residential and industrial) using discounted cash
flow sensitivity analysis.
Mr. Hendrickson holds the highest designation in the appraisal field, the MAI designation. He is
past President of the San Diego Chapter of the Appraisal Institute and has served on several
regional committees.
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QUALIFICATIONS
TED G. HENDRICKSON, MAI
APPRAISAL EXPERIENCE: 1986-Present: Hendrickson Appraisal Company, Inc. President; Real estate appraiser, reviewer, consultant, analyst, and expert witness Full range of Appraisal/Consulting services, including mediation and arbitration services Right of Way Eminent Domain Valuation Specialist 1984-1986: Independent Appraiser specializing in appraisal and feasibility analysis of commercial, industrial, offices, multi-phased subdivisions and income property. 1973-1983: Home Federal: 1973-1979: Appraiser Analyst specializing in appraisals of subdivisions, commercial, retail centers, office and industrial property. 1979-1983: Appraisal Dept. Manager, Vice President. Responsible for reviewing and appraising commercial, residential, and industrial property. 1970-1973: California Department of Transportation. Staff appraiser specializing in valuation of residential and commercial property for right of way eminent domain purposes. EDUCATION: Undergraduate and post graduate professional studies California State University, Northridge - B.S. degree in Real Estate Finance University of Southern California (Graduate School of Business) University of Washington (Graduate School of Business) Appraisal Institute Courses and Seminars: (Courses taken at various universities throughout the U.S.) ▪ Industrial Appraising ▪ Appraisal of Income Property ▪ Investment Analysis ▪ Capitalization Theory ▪ Litigation Testimony ▪ Skills of Expert Testimony ▪ Real Estate Risk and Analysis ▪ Discounted Cash Flow Analysis ▪ Valuation of Partial Interests ▪ Subdivision Analysis and Feasibility ▪ Analysis of Money Market Rates ▪ Standards of Professional Practice
▪ Valuation of Easements ▪ Impact of Hazardous Substances on Real Estate ▪ Highest and Best Use Analysis ▪ Market Land Use Analysis ▪ Financial Forecasting ▪ Environmental and Biological Issues ▪ Cost Analysis ▪ Master Planned Communities/Land Planning ▪ Mitigation Land Analysis ▪ Standards for Federal Lands Acquisitions (USFLA) ▪ Valuation of Lease Interests ▪ Eminent Domain Law PROFESSIONAL: Membership and Service MAI Designation (#6603) with the Appraisal Institute California Certified General Appraiser (AG004974) California Real Estate Broker’s License (#530471) Member of the International Right of Way Association (#1148112) Chairman and member of several Appraisal Institute committees Past President of the San Diego Chapter of the Appraisal Institute COURT EXPERIENCE: Qualified Expert Witness Testified in California State Superior Court and U.S. Federal Court Testified in Arbitration and Mediation Proceedings - government agencies and private corporations
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QUALIFICATIONS
EDWARD A. BEAVER
APPRAISAL EXPERIENCE:
1987-Present Associate Appraiser, Hendrickson Appraisal Company, Inc.
Residential: Appraisal of all types of residential properties ranging from senior citizen condominiums to
large custom estate properties, both existing and proposed. Appraisal of all types of residential properties for
public acquisition under eminent domain law including full and partial fee acquisitions, permanent and
temporary easement acquisitions and analysis of just compensation for severance damages and benefits.
Income property: Appraisal of large residential income properties, multi-phased planned industrial park
properties, vacant land intended for multi-unit residential properties, improved industrial properties,
commercial/retail properties, proposed residential subdivision properties and appraisal of leasehold interests.
Appraisal of complex commercial and residential income properties for public acquisition under eminent
domain law including full and partial fee acquisitions, permanent and temporary easement acquisitions and
analysis of just compensation for severance damages and benefits.
Experience includes giving sworn testimony during arbitration proceedings.
PROFESSIONAL:
Practicing Affiliate in the Appraisal Institute.
State of California Certified General Appraiser #AG009555.
EDUCATION:
Elmhurst College, Elmhurst, Illinois – B.S. degree in Mathematics.
National University, San Diego, California – MBA degree with emphasis in Computer Management.
Appraisal Institute Courses/Seminars
Basic Valuation Procedures Standards of Professional Practice A
Standards of Professional Practice B Capitalization Theory and Techniques A
Capitalization Theory and Techniques B Case Studies in Real Estate Valuation
Appraising from Blueprints and Specs Planning and Land Use
Apartment Valuations Appraisal Regulations of Federal Banking Agencies
OREA Laws and Regulations Applying Economic Forecasts
Environmental Risk and Analysis Property Profile of Operating Expenses
Master Planned Communities Easement Valuation
Expert Witness Testimony Leasehold Analysis
Eminent Domain Law Litigation Valuation
7 Hour National USPAP Update Uniform Appraisal Standards for Federal Land Acq.
RE Finance Statistics and Valuation Modeling
Operating Expense Seminar Supporting Capitalization Rates
Appraisal Applications of Regression Analysis Stats and Graphs 1
Review Theory – General
EXHIBIT C
Two Vacant Residential Lots
Lot 18 ±6,375 SF | $125,000
Lot 19 ±6,375 SF | $125,000
Both Lots ± 12,750 SF | $220,000
Option to Purchase Together or Separate
Vince Provenzano
President of Brokerage
Vince@PacificCoastCommercial.com
Lic. 00780182
(619) 469-3600 | 10721 Treena St., Ste 200 | San Diego, CA 92131 | www.PacificCoastCommercial.com | Lic. 01209930
Tyler McKee
Sales & Leasing Associate
Tyler@PacificCoastCommercial.com
Lic. 02082617
The information contained herein has been given to us by the owner of the property or other sources we deem reliable, we have no reason to doubt its accuracy, but we do not guarantee it. All information including zoning and use should be verified prior to purchase.
FOR SALE
Property Overview
Development Opportunity
Two +/- 6,375 SF Vacant Residential Lots
Parcel Size: +/- 12,750 SF Lot
APN # 579-364-17-00
Sale Price: $220,000 ($125,000 Per Lot)
• Situated in Spring Valley
• Zoned: RS, Residential Suburban, County of San Diego
• Land Use: VR-7.3, Village Residential, 7.3 Dwelling Units Per Acre
• Minimum Lot Size is 6,000 SF
EXISTING LAYOUT
Immediate Access to Hwy 125
with Easy Access to Hwy 54, & 94
Heavily Populated Suburban
Area Covering Approx. 11 Miles
Property Offers Views of the Area &
Hills to the East with Some Lake Views
Average Household Income:
$86,139 within a 5 Mile Radius (2019)
Information Source: CoStar
The predominant land use in the area is single family
residential, but since the 1970’s denser housing areas
have been developed. The market for residential
properties in the Spring Valley Area has been improving
for the last several years. The high concentration of
residential properties has benefited both retail and office
properties.
Public transportation is provided by the Metropolitan
Transit System which has several bus routes serving the
community.
354,361 full time population 74,958 day time population 365,403 population growth (2024)
$86,139 avg. household income
3.00 avg. household size
68,339 owner occupied population
9,026 businesses
4 public parks
* demographics source: costar, based upon a 5 mile radius
48,084 renter occupied population
Spring Valley | Market Snapshot
SURROUNDING AREA
AERIAL
19,565 VPD
JAMACHA ROAD & COUSHATTA LANE
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Michael Kerr
Information Technology Manager
PROJECT: Various DIV. NO. ALL
APPROVED BY: Adolfo Segura, Chief of Administrative Services
Mark Watton, General Manager
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO AWARD A CONTRACT TO WESTERN AV
FOR THE DISTRICT’S BOARD ROOM AUDIO-VISUAL (AV) UPGRADE PROJECT
IN AN AMOUNT NOT-TO-EXCEED $153,142.34
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to award a contract to
Western AV for the District’s Board Room Audio-Visual (AV) Upgrade
Project (CIP #2659) in an amount not-to-exceed $153,142.34.
COMMITTEE ACTION:
Please see “Attachment A”.
PURPOSE:
To obtain authorization for the General Manager to award a contract to
Western AV to purchase and replace legacy Board Room AV equipment. The
scope of work includes a new sound processing system, an electronic
voting system, new audio streaming, and a touch-screen wireless control
system. Additional components include new projectors and video wall
projection screens for digital enhancements during Board and committee
meetings.
ANALYSIS:
The Board Room’s existing AV system is approximately 17 years old and
incorporates end-of-life technology. Where possible, parts of the
system have been replaced; however, due to the age of the equipment and
wiring, many older parts are no longer compatible with the current AV
system configuration. In addition, many of the components are no longer
AGENDA ITEM 7
manufactured, and therefore, only used parts would be available if
needed. Lastly, given the age of the system, there is very limited
vendor support in San Diego.
In addition to bringing the AV system up to date, the new system will
provide new operational elements and efficiencies, including enhanced
sound system features for improved streaming quality, upgraded video
screens, and improved audio recording. Also, new video stream devices
will be installed, allowing District staff, presenters, and the general
public to wirelessly link documents, images, and presentations to the
new system directly from their computing or mobile device. Additionally,
the upgrade will provide for a new height-adjustable lectern (public
speaker), which complies with the Americans with Disabilities Act (ADA).
BACKGROUND:
The Board Room’s existing AV system was installed in 2003, with
subsequent required upgrades performed throughout the years. The
current condition of the AV system has exceeded its serviceable life,
and staff is relying on limited local vendor support for as-needed
maintenance. Staff conducted needs analysis meetings to validate the
District’s business and technical criteria and performed extensive site
planning assessments. Staff then developed bid specifications based on
these requirements. In parallel, staff also determined the appropriate
plan and upgrades necessary for compliance with the Americans with
Disabilities Act (ADA).
The outdated analog AV system has no backup or redundant capabilities.
The large overhead display is a low-quality standard definition and
limited to two simultaneous sources. Due to the current position of the
screens, information can also be difficult to read at times. Also, at
the dais, the voting system is obsolete, and there are limited
replacement parts for the electrical components.
For this project, staff engaged the expertise of Cibola Systems to
identify and develop an AV bill of goods. Items identified included the
replacement of obsolete and unserviceable AV broadcasting equipment,
the voting system, and projection screens.
During the upgrade work of the AV system, the Board Room will only be
available for scheduled monthly Board meetings. Committee meetings will
be relocated to alternate locations within the District.
Selection Recommendation:
Staff solicited bids for this upgrade project on October 15, 2019, using
BidSync, the District’s online bid solicitation website. A Pre-Bid
Conference was held on October 24, 2019, which was attended by nine
prospective contractors. Bids were received as of the deadline on
November 14, 2019, with the following results:
CONTRACTOR BID AMOUNT
1 Diversified San Diego, San Diego, CA $149,810.62
(non-responsive)
2 Sound Image of Southern California Inc.,
Escondido, CA
$153,114.61
(non-responsive)
3 Western AV, Orange, CA (with office in
Carlsbad, CA) $153,142.34
4 EIDIM Group, Inc., Buena Park, CA $164,826.87
5 Verrex, Cypress, CA $179,900.00
6 AVI-SPL, San Diego, CA $186,334.73
7 Audio Associates of San Diego, Chula Vista, CA $198,944.08
A review of the bids was performed by District staff for conformance
with the solicitation requirements. During the review, it was determined
that Diversified San Diego and Sound Image of Southern California’s
proposals were non-responsive due to the omission of certain required
forms or information. Western AV was the lowest responsive and
responsible bidder. Western AV holds an active and valid C-7, Low
Voltage Systems Contractor’s License in the State of California, which
meets the solicitation’s requirements. The reference checks indicated
a “very good” to “excellent” performance record on similar projects.
An internet background search of Western AV was performed and revealed
no outstanding issues.
Staff verified that the bid bond provided by Western AV is valid. Staff
will also confirm that Western AV’s Performance Bond and Labor and
Materials Bond is valid prior to the execution of the contract.
FISCAL IMPACT: Joe Beachem, Chief Financial Officer
The total budget for CIP #2659, as approved in the FY 2019 budget, is
$200,000. Total expenditures, plus outstanding commitments and forecast
including this contract, are within the approved CIP approved amount.
Based on a review of the financial budget, the Project Manager
anticipates that the budget for CIP #2659 is sufficient to support the
project.
The Finance Department has determined that, under current rate models,
100% of the funding is available from the Replacement Fund.
STRATEGIC GOAL:
This project supports the District’s Mission: “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 agency by providing stellar service,
achieving measurable results, and continuously improving operational
practices.”
LEGAL IMPACT:
None.
ATTACHMENTS:
Attachment A – Committee Action Report
ATTACHMENT A
SUBJECT/PROJECT:
AUTHORIZE THE GENERAL MANAGER TO AWARD A CONTRACT TO
WESTERN AV FOR THE DISTRICT’S BOARD ROOM AUDIO-VISUAL (AV)
UPGRADE PROJECT IN AN AMOUNT NOT-TO-EXCEED $153,142.34
COMMITTEE ACTION:
The Finance, Administration, and Communications Committee reviewed this
item at a meeting held on December 9, 2019. The Committee supports
presentation to the full Board for their consideration.
NOTE:
The “Committee Action” is written in anticipation of the Committee
moving the item forward for Board approval. This report will be sent to
the Board as a Committee approved item or modified to reflect any
discussion or changes as directed from the Committee prior to
presentation to the full Board.
STAFF REPORT
TYPE MEETING: Regular Board MEETING DATE: January 8, 2020
SUBMITTED BY: Jose Martinez, Assistant
Chief of Water Operations
PROJECT:
P2282
DIV. NO. All
APPROVED BY:
Pedro Porras, Chief Water Operations
Mark Watton, General Manager
SUBJECT: APPROVAL TO PURCHASE ONE (1) CLASS 5 TRUCK WITH UTILITY BODY AND
FORTY-FIVE (45) FOOT PERSONAL BUCKET LIFT
GENERAL MANAGER’S RECOMMENDATION:
That the Board authorize the General Manager to issue a purchase order to Altec Industries in the amount not-to-exceed $122,112.40
for the purchase of one (1) Class 5 Ford F-550 truck with utility body and Altec AT40G forty-five (45) foot personal bucket lift.
COMMITTEE ACTION:
See Attachment “A.”
PURPOSE:
To obtain Board authorization to purchase one (1) Class 5 Ford F-
550 truck with utility body and Altec AT40G forty-five (45) foot personal bucket lift.
ANALYSIS:
Included in the approved FY20 budget, as Item 9 under Capital Purchases, is one (1) Class 5 Ford F-550 truck with utility body and Altec AT40G forty-five (45) foot personal bucket lift (Class
5 bucket truck). This purchase is designed to operate as a personal bucket lift/aerial platform for staff to perform maintenance and
repairs to pole and building lighting, tanks mounted SCADA
AGENDA ITEM 8
communication equipment, and tank repairs and maintenance throughout the District’s pump stations and reservoir sites. The purchase of the Class 5 bucket truck will replace the following vehicle, equipment and trailer:
• Unit 136, 2002 Sterling crew truck with 70,5450 miles;
• Unit 3333, 2002 Ingersol Rand Compressor with 1151 hours;
• Unit 4986, 2011 Haloutte Biljax 55XA Boomlift;
• Unit 4956, 2010 Carson HD192 flatbed trailer; and,
• Unit 3018, 1997 Miller Welder/Generator
The units listed above will be declared surplus and sold at auction.
This purchase will be made in accordance with the District’s Purchasing Manual Section 6.2.3 Cooperative/Joint Purchases
through Sourcewell (formerly known as National Joint Power Alliance) contract with Altec Industries which was competitively
awarded. Sourcewell is a service cooperative government agency that performs cooperative purchasing on behalf of its member agencies. A quote was received for $122,112.40 from Altec
Industries for one (1) Class 5 truck with utility body and AT40G forty-five (45) foot personal bucket lift, including all taxes,
delivery, testing, and training. FISCAL IMPACT: Joe Beachem, Chief Financial Officer Projected purchase budget for the one (1) Class 5 bucket truck is
$122,112.40, which will be charged against the Vehicle Capital Purchases CIP P2282. The total cost in this account will not exceed budgeted funding.
The total FY20 project budget for the CIP P2282 Vehicle Capital
Purchases is $439,000.00. Existing expenditures and current encumbrances for the CIP, including the one (1) Class 5 bucket
truck, are $404,460.00. Based on the Utility Service Manager’s evaluation, the CIP P2282
budget is sufficient to complete the budgeted purchase.
The Finance Department has determined that 100 percent of the funds are available in the replacement fund.
Expenditure Summary: CIP P2282 FY20 Vehicle Capital Purchases Budget $439,000.00
Proposed – One (1) Class 5 Ford F-550
truck with utility body and Altec AT40G forty-five (45) foot personal bucket lift
$122,112.40
Purchased – One (1) F-450 cab and
chassis
$56,056.86
Purchased – One (1) Ford F-250 truck with utility body $39,873.02
Purchased - Two (2) Ford F-150 trucks and one (1) Ford F-550 flatbed truck $127,424.06
Purchased - Two (2) Toyota Tacoma
pickups $58,993.66
Total Projected CIP P2282 FY20 Under Budget: $34,540.00
STRATEGIC GOAL:
Operate the system to meet demand twenty-four (24) hours a day,
seven (7) days a week. LEGAL IMPACT:
None.
Attachments: Attachment A - Committee Action Attachment B – Photo of Class 5 Bucket Truck
ATTACHMENT A
SUBJECT/PROJECT:
APPROVAL TO PURCHASE ONE (1) CLASS 5 TRUCK WITH UTILITY BODY AND FORTY-FIVE (45) FOOT BUCKET PERSONAL LIFT
COMMITTEE ACTION:
The Finance and Administration Committee reviewed this item at a
meeting held on December 9, 2019, and the following comments were made:
Note:
The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a committee approved item or modified to reflect any discussion or changes as directed from the committee prior to
presentation to the full board.
ATTACHMENT B