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A $28.6 million project to rehabilitate more than four miles of large-diameter pipeline between Lake Murray and Sweetwater Reservoir was completed in June 2018. Photo: Water Authority

Water Authority Adapts to Overheated U.S. Construction Costs

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Construction costs have surged across the nation over the past year as prices for materials used in construction have risen. At the same time, contractors are struggling to meet project deadlines due to a shortage of skilled workers, construction trade industry publication Constructive Dive reported on March 18.

Those higher construction costs are impacting local agencies, including the San Diego County Water Authority. Agency staff briefed the Board of Directors’ Engineering and Operations Committee in mid-March on how those market changes are driving up costs of infrastructure and maintenance projects.

“The Water Authority will monitor market trends and adjust individual project budgets as required,” said Gary Bousquet, the Water Authority’s deputy director of engineering. “Our planning process includes prioritizing projects, and evaluating the timing or need and scope of projects. We will adjust our project cost estimates to meet changing market conditions.”

Labor shortage adds to increasing costs

A labor shortage in the construction industry is one of several factors increasing costs.

“While construction hiring remained very widespread through January [2019], industry employment gains nationally slowed in February—possibly an indication that the pool of qualified workers has dried up in many markets,” Ken Simonson, chief economist with the Associated General Contractors of America, said in a new report.

The report showed that construction employment declined by 1,300 jobs in the San Diego region from January 2018 to January 2019.

“There are many large-scale construction projects underway in Southern California, while at the same time, there is a shortage of skilled and unskilled labor, which means greater competition for those workers,” said Brent Fountain, a principal engineer with the Water Authority. “In addition, increasing prices for materials are impacting the costs for both maintenance and capital projects.”

Water Authority project bids from contractors in 2018 ranged from $200,000 to $6 million over the project costs estimated by the Water Authority, according to Fountain.

Contractors bid above estimates in 2018

: In 2018, the Water Authority received 2-to-5 bids for projects, and the bids were all well-above agency estimates. Graphic: Water Authority

In 2018, the Water Authority received 2-to-5 bids for projects, and the bids were all well-above agency estimates. Graphic: Water Authority

“We’ve received fewer bids at higher bid amounts from contractors for several projects in the past eight months,” he said. “The Water Authority generally had more bids and bid amounts closer to our project cost estimates, from 2014 through 2017.”

In previous years, bid amounts were typically closer to project cost estimates and sometimes the bids came in well below the estimates.

Contractors bid below estimates in prior years

From October 2014 through June 2017, the Water Authority received 3-to-7 bids for projects, and the bids were all below agency estimates. Graphic: Water Authority

From October 2014 through June 2017, the Water Authority received 3-to-7 bids for projects, and the bids were all below agency estimates. Graphic: Water Authority

Bousquet said the agency will monitor construction industry cost trends as it continues pioneering projects to serve the region.

“The Water Authority has made an array of innovative infrastructure investments over the past 25 years, including some of the largest projects in the history of the agency, to sustain the $231 billion regional economy,” said Bousquet. “We will continue to develop cost-effective projects to provide a safe and reliable wholesale water supply to San Diego residents.”

Helix Water District Logo Square officers for 2021

Helix Water District High School Photo Contest Winners Highlight Water in Everyday Life

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La Mesa, Calif.—Local high school students were honored for their winning photos at an awards ceremony during Helix Water District’s special board meeting on March 20, 2019. Seventy-four students from four schools entered the annual high school photo contest, highlighting the importance and beauty of water in everyday life.

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Olivenhain Municipal Water District Named California’s Recycled Water Agency of the Year

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Encinitas, CA—The WaterReuse Association of California today recognized Olivenhain Municipal Water District as its 2019 Agency of the Year (Medium). The award was presented this morning at WateReuse’s annual conference in Garden Grove.

 

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View looking north of the First Aqueduct right of way in Valley Center. Photo: Water Authority

Historic Pipeline Project Boosts Long-Term Water Reliability

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San Diego County Water Authority crews successfully completed the first of three coordinated shutdowns of the First Aqueduct in early March to launch a major renovation of dozens of structures on two pipelines, including the historic Pipeline 1 that first delivered imported water to the region in 1947.

The series of shutdowns was carefully planned for nearly four years to minimize impacts on the community and retail water agencies during retrofits of Pipelines 1 and 2, which comprise the First Aqueduct.

“The First Aqueduct has been a very reliable source of imported water for more than 70 years,” said Chris Castaing, operations and maintenance manager at the Water Authority. “These critical upgrades will make sure we can operate and maintain the pipelines for another several decades to transport water to the region for future generations.”

Started during the Water Authority’s 75th anniversary year, the $30 million First Aqueduct structure and lining renovation project is among the most complicated pipeline retrofits in agency history.

During the next two years, upgrades include replacing the lining on the steel pipe sections; removing 19 associated structures; and retrofitting 41 structures – all without jeopardizing water service to the region.

Project will enhance reliability and flexibility of regional water system

Crews complete work on and seal the top of a bifurcation structure. Photo: Water Authority

Crews complete work on and seal the top of a bifurcation structure. Photo: Water Authority

Pipeline structures that will be rehabilitated include valves, blowoffs, pump wells and access ways.

Approximately 4 miles of failing pipeline lining on the steel pipe sections will be carefully removed and replaced with new cement mortar lining. Cement mortar is the preferred material, because it protects the interior of the steel pipe from corrosion and premature failure, has a longer life, and is easier to maintain. The project also will add redundant connections to six flow control facilities between the two pipelines, greatly improving the aqueduct’s operational flexibility.

During the first shutdown between February 24 and March 5, crews isolated sections of the pipeline and took them out of service so work can be safely performed on those sections throughout the year. In late 2019, a second 10-day shutdown will allow crews to switch flows to the upgraded sections of pipe and isolate other sections for repairs.

In addition to completing the First Aqueduct structure and lining renovation project, the Water Authority also will perform assessments of 27 miles of the pipeline to determine if additional upgrades will be needed.

A bill in the California state Legislature aims to boost jobs for vets to help meet the needs of the aging water industry workforce. Photo; Water Authority

Water Authority Bill Aims to Boost Water Industry Jobs for Veterans

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July 10, 2019 update: Assembly Bill 1588 passed the Senate Veterans Affairs Committee on a 6-0 vote July 9 and will be considered by the Senate Appropriations Committee on August 12.

May 29, 2019 update: Assembly Bill 1588 passed the state Assembly on a 78-0 vote on May 23 and is now under consideration by the state Senate.

A new bill in the California Legislature would provide a path for veterans transitioning to civilian employment to receive credit for their military experience and education toward certifications in the water industry.

Assembly Bill 1588 was introduced February 22 by San Diego Assemblymember Todd Gloria and Central Valley Assemblymember Adam Gray. The bill, which may be heard in committee this month, is co-sponsored by the San Diego County Water Authority and the Otay Water District in hopes of helping the state’s industry replace a wave of retiring Baby Boomers.

Several states help veterans navigate the civilian water system operator certification process and allow veterans to apply equivalency standards to credit military experiences toward state or industry certifications in water and wastewater treatment and distribution. However, no similar pathway exists in California.

‘Silver tsunami’

“The goal is to help veterans transitioning into civilian occupations, especially in the water and wastewater industry,” said Glenn Farrel, government relations manager for the Water Authority. “At a time with the water industry is facing a ‘silver tsunami’ – with thousands of workers expected to retire in coming years – veterans are returning to the civilian workforce with skills to benefit the industry and fill those jobs.”

Water and wastewater treatment is an essential industry and with an aging infrastructure and workforce. There are approximately 6,000 active certified wastewater treatment plant operators and approximately 35,000 drinking water treatment and distribution operators in California.

Challenges for water industry

Replacement of critical infrastructure components, while maintaining service to customers, is one of the greatest challenges in the water-wastewater industry today. In addition, the high pace of retirements, new technologies and increased demand for safe drinking water contribute to the pressure on the industry to augment the workforce.

“If veterans could more quickly move through the civilian certification process, the California water industry would have a much larger pool of highly skilled, motivated, and talented people eager to continue their public service careers,” Farrel said.

Helix Water District Logo Square officers for 2021

Helix Water District Approves $8 Million Pay-Down of Pension Liabilities

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The Helix Water District Board of Directors approved on February 13, 2019 a one-time, $5 million payment in 2019 and an additional $3 million in payments over the next four years to reduce the district’s unfunded employee pension liabilities.

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Oceanside Hosts World of Water Celebration March 23

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Oceanside, Calif. – Join the City of Oceanside on Saturday, March 23, 2019, from 10:00 a.m. to 1:00 p.m. to experience Oceanside’s World of Water. This FREE, fun-filled, water-themed event will take place at the San Luis Rey Water Reclamation Facility, 3950 North River Road in Oceanside. Celebrate World Water Day by traveling through many activities to learn the ways the City of Oceanside works to provide its customers the world’s most precious resource – WATER!

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Helix Water District Logo Square officers for 2021

Helix Water District Launches 2019 Lake Jennings Spring Photo Contest

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La Mesa, Calif.—Helix Water District has launched its eighth annual Lake Jennings Spring Photo Contest to share the beauty of its reservoir with the local community. The contest is open to photos taken at Lake Jennings between March 1 and May 31, 2019.

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Olivenhain Municipal Water District Logo landscape design workshops

Olivenhain Municipal Water District Expands Recycled Water Service in Rancho Santa Fe

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Encinitas, Calif. — Olivenhain Municipal Water District began serving recycled water to the Del Rayo Downs Homeowner Association in Rancho Santa Fe this week. The conversion to recycled water enables the HOA to save money on its monthly water bill while decreasing imported water demand by approximately 17.5 acre-feet annually. An acre-foot is enough to serve two typical families of four for a year.

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(L to R) State Senator Brian W. Jones, Water Authority General Manager Maureen Stapleton, and Water Authority Board Chair Jim Madaffer

Stapleton Celebrated for Decades of Leadership in San Diego Region

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State and federal dignitaries praised retiring San Diego County Water Authority General Manager Maureen Stapleton today for decades of public service and her achievements in securing safe and reliable water supplies for the region.

Stapleton announced her retirement from the Water Authority earlier this month, prompting several commendations during the Water Authority Board of Directors regular February meeting.

California U.S. Senator Dianne Feinstein said in a letter that she valued Stapleton’s expertise on water issues. “During your more than 40 years of public service, you have demonstrated a deep commitment to your profession and the region,” wrote Feinstein. “Under your skilled leadership, the Water Authority successfully developed water storage and conservation projects and oversaw construction of the nation’s largest desalination plant.

“Although your presence will be greatly missed, I am confident that your record of hard work and dedication will serve as a model for those who follow in your footsteps.”

Historic investments for San Diego

In a California legislative resolution, elected leaders representing San Diego County lauded Stapleton “for her long and distinguished record of professional service and for her outstanding civic leadership.”

The resolution highlighted Stapleton’s many achievements over 23 years at the helm of the Water Authority, including successfully negotiating the landmark 2003 Colorado River Quantification Settlement Agreement. It is the nation’s largest ag-to-urban water conservation-and-transfer agreement, and it remains a cornerstone of water management in the Southwest.

“As General Manager, Maureen Stapleton oversaw the greatest investment in large-scale regional water infrastructure in San Diego County history, including the first major new dam and reservoir in 50 years and the nation’s largest seawater desalination plant – an investment that provides significant protections for the San Diego region in the event of imported water supply emergencies and droughts.”

Under Stapleton’s guidance, the Water Authority also implemented cutting-edge urban water conservation programs that have helped to reduce per capita water use in the San Diego region by more than 40 percent since 1990. The Water Authority also significantly increased water supply protections for the region during droughts or other emergencies with $3.5 billion in investments. And, the Water Authority partnered with Poseidon Water to develop the largest seawater desalination plant in the nation.

Click here to view the resolution by the San Diego delegation.

‘She refused to suffer drought’

Former California Gov. Pete Wilson, who was in office during peak drought years in the early 1990s, highlighted Stapleton’s leadership during that time to create a safe, stable and reliable water supply for the region.

“The history of San Diego has always been about the struggle to create an adequate and reliable water supply,” Wilson said. “But today, that story has a new chapter, written by Maureen and her team at the Water Authority. Their success in building a highly reliable water supply that fuels San Diego’s robust economy and supports a quality of life envied the world over has been nothing short of remarkable and historic. She refused to just suffer drought.”

See a video greeting to Stapleton from former California Gov. Pete Wilson.

San Diego Rep. Scott Peters honored Stapleton with a Congressional Proclamation on behalf of the U.S. House of Representatives and the constituents of the 52nd Congressional District “for her lifelong contributions, exemplary leadership, and service to the San Diego region.”

The proclamation said: “She led a successful, multi-decade strategy to diversify and improve the reliability of San Diego County’s water supply, which now supports at $220 billion economy and the qualify of life for 3.3 million people; she transformed the Water Authority into a pioneering, visionary, agile, and driven public agency; and she has been a pillar of San Diego civic life for decades through service on several boards and foundations.”

Click here to view the proclamation from Congressman Scott Peters.