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Home My WebLink About06-05-24 BOARD MINUTES 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY June 5, 2024 1. The meeting was called to order by President Lopez at 3:30 p.m. 2. ROLL CALL Directors Present: Croucher, Keyes (arrived in Closed Session 3:36 p.m.), Lopez and Robak Directors Absent: Smith Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos- Krogman and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Robak, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Lopez and Robak Noes: None Abstain: None Absent: Directors Keyes and Smith to approve the agenda. 5. APPROVAL OF THE MINUTES OF THE SPECIAL BOARD MEETING OF APRIL 24, 2024, AND THE REGULAR MEETING OF MAY 1, 2024 A motion was made by Director Robak, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Lopez and Robak Noes: None Abstain: None Absent: Director Keyes and Smith 2 to approve the minutes of the special board meeting of April 24, 2024, and the regular meeting of May 1, 2024. 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA There were no public comments to be heard. RECESS TO CLOSED SESSION Director Ryan Keyes arrived at 3:36 p.m. 7. CLOSED SESSION The board recessed to closed session at 3:36 p.m. to discuss the following matters: a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE §54957.6] AGENCY DESIGNATED REPRESENTATIVES: GARY CROUCHER AND JOSE LOPEZ EMPLOYEE ORGANIZATION: OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION AND ALL REPRESENTED AND UNREPRESENTED PERSONNEL, INCLUDING MANAGEMENT AND CONFIDENTIAL EMPLOYEES b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017- 00019348-CU-WM-CTL 3 d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015- 000-CU-MC-CTL e) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.95] NAME OF CLAIMANT: BRIAN E. WATKINS AND ASSOCIATES REPRESENTING ELLISON AND ELLISON f) EVALUATION OF GENERAL COUNSEL Pursuant to Government Code §54954.5 RETURN TO OPEN SESSION 8. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at 5:36 p.m. and General Counsel Dan Shinoff reported that the board took action on Item 6e of the board agenda, which was a 4-0 vote to reject the claim from Brian Watkins and Associates representing Ellison and Ellison. General Manager Jose Martinez reported that the board took action on Item 6f of the board agenda, which was a 4-0 vote to extend the contract of General Counsel to June 30, 2025. General Counsel Dan Shinoff recommended that the board also take action on this item outside of Closed Session. A motion was made by Director Croucher, seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: Director Smith to extend the existing contract with Artiano Shinoff Abed Carelli Sleeth & Wade, APC, A Professional Corporation, to June 30, 2025. No other reportable actions were taken in closed session. 9. MEMORANDUM OF UNDERSTANDING a) ADOPT RESOLUTION NO. 4444 TO APPROVE THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE OTAY WATER DISTRICT AND THE OTAY WATER DISTRICT EMPLOYEES’ ASSOCIATION EFFECTIVE JULY 1, 2024 THROUGH JUNE 30, 2027 (WITH ONE [1] PROVISION GOING INTO 4 EFFECT ON SEPTEMBER 1, 2024), FOR THE FIELD AND ADMINISTRATIVE EMPLOYEES’ BARGAINING UNITS AND APPROVE EXTENDING THE SAME NEGOTIATED COST-OF-LIVING ADJUSTMENTS AND RELATED BENEFITS FOR MANAGEMENT, CONFIDENTIAL, AND EXECUTIVE (UNREPRESENTED) EMPLOYEES Human Resource Manager Suzie Lawson provided the staff report to the board. As noted in the staff report, effective the first full pay period of July 2024, and each subsequent full pay period of July thereafter during the term of this MOU, salaries will be increased as follows: July 2024 - Six percent (6%), July 2025 - Five percent (5%), July 2026 - Five percent (5%). A motion was made by Director Keyes, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: Director Smith to adopt Resolution No. 4444 to approve the Memorandum of Understanding between the Otay Water District and the Otay Water District Employees’ Association effective July 1, 2024 through June 30, 2027 (with one [1] provision going into effect on September 1, 2024), for the Field and Administrative Employees’ Bargaining Units and approve extending the same negotiated cost-of-living adjustments and related benefits for management, confidential, and executive (unrepresented) employees. 10. FISCAL YEAR 2024-2025 BUDGET a) ADOPT RESOLUTION NO. 4442 TO APPROVE THE FY 2024-2025 OPERATING AND CAPITAL BUDGET; APPROVE FUND TRANSFERS FOR POTABLE, RECYCLED, AND SEWER; ADOPT THE SALARY SCHEDULE; ADOPT ORDINANCE NO. 592, AMENDING APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES IMPLEMENTING WATER AND SEWER RATE CHANGES, EFFECTIVE JANUARY 1, 2025; AND DIRECT STAFF TO DRAFT AND MAIL RATE INCREASES NOTICES Staff members provided a PowerPoint presentation to board members. Assistant Chief Financial Officer (CFO) Kevin Koeppen discussed the district’s historical rate increases due to supplier cost increases. He noted that the main suppliers impacting rate increases are the County Water Authority, Metropolitan Water District, and SDG&E. Director Croucher requested that staff research how Otay Water District’s penalties compare to other agencies. He also requested that staff research opportunities to help customers with late payments to avoid penalties. 5 Director Robak inquired if 100% of the increases are due to external causes. Assistant CFO Kevin Koeppen said that is correct. General Manager Jose Martinez stated that there are many factors, such as regulatory creep and unfunded mandates, that contribute to the increases. Director Keyes discussed opportunities for the district to save money on energy charges. Staff provided district practices to save energy and indicated that the district is looking into solar system opportunities. In response to suggestions from Director Croucher, Assistant CFO Kevin Koeppen stated that a notification will be sent to customers that will provide reasons for the rate increases, which will include the Local Agency Formation Commission Detachment Project - Rainbow Municipal Water District and the Fallbrook Public Utility District. The Preliminary Residential Water Rate Comparison will also be included in the notification to let customers know how the district’s rates compare to other water agencies. There was a discussion on the upcoming AMI Project, in which staff noted that additional staffing will be needed to complete and maintain this project. Director Croucher inquired about AWWA’s water loss requirement. Chief of Operations Andrew Jackson said that AWWA’s requirement is approximately 10%, which the district’s water loss is significantly lower than the requirement and is a testament to the district’s infrastructure. Director Croucher suggested that the PowerPoint slide showing Historical Water Loss should indicate AWWA’s water loss requirement to show that the district is well within the agency’s standards. President Lopez inquired if the current AMR is helpful with leak detection. Chief of Operations Andrew Jackson stated that it does help as it provides data to compare water usage for customers on a monthly basis. In response to comments and questions from Director Robak, Customer Service Manager Andrea Carey stated that the new AMI Project will provide data twice a day. The AMI Project is anticipated to take a few years to complete. In response to a question from Director Robak, Assistant Chief Financial Officer Kevin Koeppen said that the 14.9% administrative cost for insurance is specifically the ACWA-JPIA insurance. Staff responded to additional questions from the board. It was noted that the district starts from a zero-based budget every year when drafting the budget. President Lopez noted that Director Smith reviewed the proposed Budget for 2024- 2025 and stated that Director Smith had no questions. A motion was made by President Lopez, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Lopez and Robak 6 Noes: Director Keyes Abstain: None Absent: Director Smith to adopt Resolution No. 4442 to approve the FY 2024-2025 Operating and Capital Budget; approve fund transfers for potable, recycled, and sewer; adopt the salary schedule; adopt Ordinance No. 295, amending Appendix A of the District’s Code of Ordinances implementing water and sewer rate changes, effective January 1, 2025; and direct staff to draft and mail rate increases notices. CONSENT ITEMS 11. CONSENT ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Robak, seconded by Director Croucher and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: Director Smith to approve the following consent calendar items: a) APPROVE THE FOURTH AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT FOR THE METRO WASTEWATER JOINT POWERS AUTHORITY b) APPROVE AND ADOPT THE 870-1 AND 870-2 RESERVOIRS PROJECT ADDENDUM TO THE OTAY WATER DISTRICT 2015 WATER FACILITIES MASTER PLAN UPDATE PROGRAM ENVIRONMENTAL IMPACT REPORT (PEIR). THIS IS ADDENDUM NO. 2 TO THE FINAL PEIR c) AWARD A PROFESSIONAL PLANNING SERVICES AGREEMENT TO AARC CONSULTANTS, LLC (AARC) AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE AGREEMENT WITH AARC TO PREPARE A CLIMATE ADAPTATION AND RESILIENCE PLAN IN AN AMOUNT NOT-TO-EXCEED $219,015 d) AWARD TWO PROFESSIONAL SERVICES AGREEMENTS FOR AS-NEEDED COATING INSPECTION SERVICES AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE AGREEMENTS WITH COATING SPECIALISTS AND INSPECTION SERVICES, INC. AND RUSTY PAULS INSPECTIONS, LLC, dbs mcs INSPECTION IN AN AMOUNT NOT-TO-EXCEED $175,000 DURING FISCAL YEARS 2025-2026 (ENDING JUNE 30, 2026) 7 ACTION ITEMS 12. BOARD a) DISCUSS THE 2024 BOARD MEETING CALENDAR A motion was made by Director Keyes, seconded by President Lopez and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: Director Smith to cancel the July 3, 2024, regular board meeting. There were no other changes to the board meeting calendar. INFORMATIONAL ITEM 13. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) THIRD QUARTER FISCAL YEAR 2024 CAPITAL IMPROVEMENT PROGRAM REPORT Engineering Manager Kevin Cameron provided a PowerPoint presentation to the board. REPORTS 14. GENERAL MANAGER REPORT General Manager Jose Martinez provided his staff report to the board and discussed the Multi-Agency Wild Land Preparedness Exercise Partnership and showed a video from an Instagram post by the Chula Vista Fire Department. Mr. Martinez introduced the district’s new Finance Manager Jonathan Ravaglioli. 15. SAN DIEGO COUNTY WATER AUTHORITY UPDATE No San Diego County Water Authority Updates were provided. Director Croucher indicated that he planned to attend the SDCWA meeting virtually as he was in Texas due to a family emergency. However, he was unable to attend the meeting as a tornado hit close to his location and caused internet services to go down. 8 16. DIRECTORS' REPORTS/REQUESTS Director Robak provided an update on the Water Conservation Garden (WCG) matter. He shared that he may be appointed as the Executive Director to the WCG and therefore may have to resign as the Joint Power Authority (JPA) representative, on behalf of Otay Water District, on the WCG. He noted that he will discuss this matter with President Lopez and legal counsel. Written reports from Directors Croucher, Keyes and Robak were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 17. PRESIDENT’S REPORT A written report President Lopez was submitted to District Secretary Ramos-Krogman and will be attached to the minutes for today’s meeting. U U UUOTAY WATER DISTRICT FINANCING AUTHORITY 18. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 19. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 7:22 p.m. President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: From: 06/01/24 To: 06/28/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 06/03/24 OWD Directors’ Quarterly Meeting with General Manager 2 06/04/24 South County EDC Monthly South County EDC Meeting 3 06/05/24 OWD Regular Board Meeting 19 4 06/07/24 OWD Water Conservation Garden Meeting 26 5 06/08/24 City of Chula Vista Chula Vista Form Fire Station 4 (NO CHARGE) 6 06/10/24 OWD Ad Hoc General Manager Evaluation Meeting 32 7 06/14/24 OWD Sweetwater Schools/Mentoring Project Meeting 19 8 06/17/24 OWD Ad Hoc General Manager Evaluation Meeting 32 9 06/18/24 City of Chula Vista State of City Address Mayor McCann (NO CHARGE) 10 06/28/24 OWD Special Board Meeting 19 From: ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 6/4/2024 Quarterly GM Meeting Quarterly meeting with GM 2 6/5/2024 OWD Board Meeting Monthly Meeting 3 6/19/2024 Special Board Meeting Special Board Meeting 4 5 6 7 8 9 10 11 OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: Employee Number 6/1/24 - 6/30/24 Pay To: Ryan Keyes Mark Robak From:6/1/2024 6/30/2024 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 6/5/2024 Water Conservation Garden Meeting with Lauren Magnuson & Brian Olney to discuss organizational changes - NO CHARGE 0 0 2 6/5/2024 Otay Water District Monthly Board Meeting 7 0 3 6/6/2024 San Diego Regional Chamber of Commerce Sustainability & Industry Committee 0 0 4 6/6/2024 Water Conservation Garden Meeting with Lauren Magnuson to further discuss organization changes - NO CHARGE 0 0 5 6/7/2024 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 0 0 6 6/7/2024 Water Conservation Garden JPA Board Meeting 0 0 7 6/10/2024 Water Conservation Garden Meeting with Brian Olney - NO CHARGE 0 0 8 6/11/2024 Jamul Fire Safe Council Hear from California Department of Insurance on possible Garden insurance options 0 24 9 6/17/2024 San Diego Regional Chamber of Commerce Leadership Delegation to Sacramento 0 17 10 6/18/2024 San Diego Regional Chamber of Commerce Leadership Delegation to Sacramento 0 17 11 6/19/2024 Otay Water District General Manager Evaluation 7 0 12 6/21/2024 San Diego LAFCO Special Districts Advisory Board 0 34 13 6/26/2024 East County EDC Monthly Board Meeting 0 0 14 6/27/2024 San Diego County Water Authority Monthly Board Meeting 0 0 14 92 Pay To:Period Covered Employee Number OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Tim Smith From: 6/1/2024 to 6/30/2024 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 6/6/2024 Dir. Qtrly Mtg Discuss Director Quarterly Meeting highlights with GM Martinez 0 0 2 6/11/2024 GM Mtg.Discuss Confidential Issues with GM Martinez 0 0 3 6/12/2024 AWWA ACE24 Membrane Standards Committee Mtg. Discuss three updates to AWWA Membrane Standards in the Committee Mg (Virtual) 0 0 4 6/19/2024 GM/GC Mtg. Discuss Confidential Issues with GM Martinez and GC Shinoff 0 0 5 6/25/2024 SDCWA Matters Discuss SDCWA matters with GM Martinez and Dir. Croucher 0 0 6 6/26/2024 SDCWA Matters Discuss SDCWA matters with Dir. Croucher (Dinner Mtg)0 48 7 8 9 10 11 0 48 Pay To:Period Covered Employee Number OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM