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Home My WebLink About05-07-25 Board Minutes1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY May 7, 2025 1.The meeting was called to order by President Lopez at 3:33 p.m. 2.ROLL CALL Directors Present: Gonzalez, Lopez, Rivera, and Robak Directors Absent: Croucher Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Acting Chief of Operations Jake Vaklavek, Asst. Chief of Finance Kevin Koeppen, and District Secretary Tita Ramos-Krogman. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Gonzalez, seconded by President Lopez, and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Croucher to approve the agenda. 5.APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF APRIL 2, 2025 A motion was made by Director Robak, seconded by Director Rivera, and carried withthe following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Croucher to approve the minutes of the regular meeting of April 2, 2025. 2 6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA There were no public comments to be heard. 7. BOARD SECURITIES AND EXCHANGE COMMISSION TRAINING a) DISCLOSURE RESPONSIBILITIES UNDER FEDERAL SECURITIES LAW Mr. Reed Glyer from Stradling Yocca Carlson & Rauth LLP, provided a PowerPoint presentation to the board and responded to their questions and comments. CONSENT ITEM 8. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: A motion was made by Director Robak, seconded by Director Rivera and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to approve the following consent calendar item: a) AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A CONTRACT WITH U.S. BANK FOR BANKING SERVICES, INCLUDING FIXED FEE SCHEDULE, FOR A PERIOD OF UP TO FIVE YEARS ACTION ITEMS 9. BOARD a) RECEIVE THE DISTRICT’S INVESTMENT POLICY, POLICY NO. 27 OF THE DISTRICT’S CODE OF ORDINANCES, FOR REVIEW AND RE-DELEGATE AUTHORITY FOR ALL INVESTEMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607 Finance Manager of Treasury & Accounting Jon Ravaglioli provided a PowerPoint Presentation to the board and responded to their comments and questions. A motion was made by Director Robak, seconded by Director Rivera and carried with the following vote: 3 Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to approve staff’s recommendation. b) APPROVAL OF FUNDING AND TERM FOR CONTINUED PARTICIPATION IN THE WATER CONSERVATION GARDEN AUTHORITY (WCGA) BEGINNING JULY 1, 2025 Communications Officer Tenille Otero provided the staff report to board members and indicated two (2) options for the district with regards to funding the WCGA: 1) Rescind the district’s withdrawal letter and continue funding the operations of the Garden; 2) Do not rescind the district’s withdrawal letter as it already indicates the district’s intentions to not continue funding the operation of the Garden. Ms. Lauren Magnuson, the Garden’s Executive Director, provided an update and responded to questions and comments from the board. Director Delfina Gonzalez indicated her support for Option 1 and suggested that the district help with advertising the Garden through the district’s newsletters, websites, and social media to let the community know that it’s there and to help support it. President Jose Lopez indicated his support for Option 1 and stated that the Garden’s success comes from the dedication of its volunteers. Director Francisco Rivera indicated his support for Option 1 and made a comment about the possibility of Cuyamaca College taking the responsibility of paying for insurance and utilities for the Garden. A motion was made by Director Rivera, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to rescind the district’s withdrawal letter and continue funding the operations of the Water Conservation Garden. c) ADOPT RESOLUTION NO. 4454, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT, PLACING IN NOMINATION JOSE MARTINEZ AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES REGION 10 BOARD MEMBER 4 President Lopez provided a background of the purpose to adopt Resolution No. 4454. This would allow the district to submit a nomination to the Association of California Water Agencies (ACWA) for Jose Martinez to continue representing Region 10 as a board member. A motion was made by Director Robak, seconded by Director Rivera and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to approve staff’s recommendation to adopt Resolution No. 4454. d) ADOPT RESOLUTION NO. 4453 AMENDING SECTION 25 OF THE DISTRICT’S CODE OF ORDINANCES TO INCORPORATE “ESTABLISHING A PROCEDURE FOR RATEPAYER OBJECTIONS TO PROPOSED WATER AND SEWER FEES AND CHARGES” Assistant Chief Financial Officer Kevin Koeppen provided the staff report to the board. He introduced Ms. Claire Collins, Partner at Hanson Bridgett LLP, who assisted in drafting and passing AB 2257 that will protect agencies against unanticipated legal challenges to its fee structure and ensure a well-documented administrative record for any legal objections to the fee structure. She discussed the procedures for the Proposition 218 notices and responded to comments and questions from the board. Director Gonzalez provided suggestions that would help customers better understand the Proposition 218 notices. Mr. Koeppen and Ms. Collins indicated that staff are working on a comprehensive one-page Proposition 218 Summary that provides details of the intent of increasing rates. It will be mailed to customers with the Proposition 218 notices. In addition, the notices and summary will provide contact information for individuals who would like to obtain details and information in Spanish. Mr. Koeppen and Ms. Collins responded to additional comments and questions from the board. A motion was made by Director Robak, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to approve staff’s recommendation to adopt Resolution No. 4453. 5 e) DISCUSS THE 2025 BOARD MEETING CALENDAR There were no changes to the board calendar. REPORTS 10. GENERAL MANAGER REPORT Chief of Administrative Services Adolfo Segura provided information on the GFOA Certificate of Achievement for Excellence in Financial Reporting. He also highlighted that Senior Utility Worker Brandon Perry presented to the Cuyamaca College AWWA Student Chapter information on the Repair and Maintenance of a water distribution system. 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Robak provided an update on CWA matters. 12. DIRECTORS' REPORTS/REQUESTS Directors Gonzalez, Rivera, and Robak shared and/or submitted written reports of meetings they attended. See attached reports. 13. PRESIDENT’S REPORT President Lopez provided an update on Mexico’s Desalination Project. A written report of meetings he attended was submitted to District Secretary Ramos-Krogman. See the attached report. 14. CLOSED SESSION The board recessed to closed session at 5:28 p.m. to discuss the following matters: a) 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 b) ANTICIPATED LITIGATION GOVERNMENT CODE §54956.9 (E) (3) CLAIMANT: Sue Jin Lee c) ANTICIPATED LITIGATION GOVERNMENT CODE §54956.9 (E) (3) CLAIMANT: Robinhood Court 6 RETURN TO OPEN SESSION 15. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at 6:51 p.m. and General Counsel Dan Shinoff reported that the board took the following actions on Agenda Items 13b and 13c: 13b) ANTICIPATED LITIGATION GOVERNMENT CODE §54956.9 (E) (3) CLAIMANT: Sue Jin Lee A motion was made by Director Robak, seconded by President Lopez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to reject Sue Jin Lee’s claim. 13c) ANTICIPATED LITIGATION GOVERNMENT CODE §54956.9 (E) (3) CLAIMANT: Robinhood Court General Counsel indicated that this claim was related to a claim that had to be filed within six (6) months. A motion was made by Director Rivera, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: Croucher to reject all claims within the six-month statutory period, and then the Homeowners Association will be notified that anything beyond six (6) months will be returned without action and will then have the right to file a petition for late claim relief. No other reportable actions were taken in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 7 17. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 6:52 p.m. President ATTEST: District Secretary Mark Robak From:4/1/2025 4/30/2025 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 4/2/2025 Otay Water District Board Meeting 2 4/3/2025 San Diego Chamber of Commerce Sustainability and Industry Committee 3 4/4/2025 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 4 4/8/2025 Olivenhain Municipal Water District VIP Facilities Tour 5 4/11/2025 Chula Vista Chamber of Commerce First (second) Friday Breakfast - NO CHARGE 6 4/15/2025 East County Chamber of Commerce Government Affairs Committee 7 4/16/2025 East County Economic Development Council Monthly meeting - NO CHARGE 8 4/16/2025 East County Chamber of Commerce Membership Committee Meeting - NO CHARGE 9 4/16/2025 Otay Water District Special Board Meeting 10 4/18/2025 San Diego LAFCO Special Districts Advisory Board 11 4/22/2025 SDCWA Matters Meeting Discuss upcoming SDCWA Board Meeting 12 4/23/2025 East/South County Caucus Meeting Discuss upcoming SDCWA Board Meeting 13 4/23/2025 Otay Water District Spring Employee Appreciation Luncheon - NO CHARGE 14 4/24/2025 East County Chamber of Commerce Monthly Board Meeting 15 4/24/2025 San Diego Chamber of Commerce Business After Four Mixer - NO CHARGE 16 4/25/2025 South County Albondigas Update from South County Mayors - NO CHARGE 17 4/29/2025 South County Economic Development Council'Yearly Economic Summit OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number