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Home My WebLink About06-04-25 Board Minutes1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY June 4, 2025 1.The meeting was called to order by President Lopez at 3:32 p.m. 2.ROLL CALL Directors Present:Croucher, Gonzalez, Lopez, Rivera, and Robak Directors Absent:None 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 Croucher, Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: None to approve the agenda. 5.APPROVAL OF THE MINUTES OF THE SPECIAL BOARD MEETINGS OF FEBRUARY 26, 2025, AND APRIL 16, 2025 A motion was made by Director Robak, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: None to approve the minutes of the special board meetings of February 26, 2025, and April 16, 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. CONSENT ITEM 7. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PARTICULAR ITEM: In response to a question from Director Rivera with regards to Agenda Item 6a, Adopt Resolution No. 4457 to Continue Water and Sewer Availability Charges for District Customers for Fiscal Year 2025-2026 to be Collected Through Property Tax Bills, Chief Financial Officer Joe Beachem clarified that availability charges would apply to Improvement District 22 (water) and Improvement District 18 (sewer). A motion was made by Director Croucher, seconded by Director Rivera and carried with the following vote: Ayes: Directors Croucher, Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) ADOPT RESOLUTION NO. 4457 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2025-2026 TO BE COLLECTED THROUGH PROPERTY TAX BILLS b) AWARD A CONTRACT TO RJ NICHOLS CONSTRUCTION, INC. TO PERFORM THE DATA CENTER REDUCTION AND IT OFFICE TENANT IMPROVEMENT IN THE AMOUNT OF $106,745 c) AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH KIRK PAVING FOR AS-NEEDED URGENT PAVING SERVICES IN AN AMOUNT NOT-TO-EXCEED $600,000 FOR THE INITIAL ONE-YEAR TERM, WITH FOUR (4) ONE-YEAR RENEWAL OPTIONS, FOR A TOTAL AMOUNT NOT-TO- EXCEED $3,000,000 OVER FIVE YEARS d) AWARD TWO (2) PROFESSIONAL SERVICE AGREEMENTS FOR AS-NEEDED HYDRAULIC MODELING SERVICES AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE TWO CONTRACTS WITH WATER SYSTEMS CONSULTING INC. AND WOOD RODGERS, INC., EACH IN AN AMOUNT NOT- TO-EXCEED $175,000. THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $175,000 DURING FISCAL YEARS 2026 AND 2027 (ENDING JUNE 30, 2027) 3 e) AWARD A CONSTRUCTION CONTRACT TO JENNETTE COMPANY, INC. (JEN- NETTE) AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREE-MENT WITH JENNETTE FOR THE 711 PUMP STATION IMPROVEMENTS PHASE I PROJECT IN AN AMOUNT NOT-TO-EXCEED $698,000 f) ADOPT RESOLUTION NO. 4458 APPROVING THE SEWER ANNEXATION OF PROPERTY OWNED BY YOUSIF YOULIYAN (APN 519-282-09-00 – 3344 INDIAN MILLS LANE, JAMUL, 91935) TO OTAY WATER DISTRICT SEWER IMPROVE-MENT NO. 18 g) ADOPT RESOLUTION NO. 4455 APPROVING THE SEWER ANNEXATION OF PROPERTY OWNED BY VICTOR & ALEJANDRA MARTINEZ (APN 517-101-25- 00 – 1764 HIDDEN MESA ROAD, EL CAJON, 92019) TO OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT NO. 18 INFORMATIONAL ITEM 8. 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 2025 CAPITAL IMPROVEMENT PROGRAM REPORT The board waived staff’s presentation. ACTION ITEMS 9. BOARD a) DISCUSSION OF THE WATER CONSERVATION GARDEN (WCG) LOCATED AT THE CUYAMACA CAMPUS AND PROPOSED ACTION TO DELEGATE THE WCG AUTHORITY REPRESENTATIVES TO WORK WITH LEGAL COUNSEL AND ANY POTENTIAL MODIFICATIONS TO THE EXISTING MOU Director Croucher noted that this agenda item is a follow-up to the board’s previous action to rescind its withdrawal letter and continue the district’s membership with the Joint Powers Authority. He made a motion to delegate General Manager Jose Martinez as the Otay Water District’s representative to work with General Counsel Dan Shinoff on any potential modifications to the existing MOU regarding amended and restated joint powers agreement creating the Water Conservation Garden Authority and continuation of funding and operation for the Water Conservation Garden. A motion was made by Director Croucher, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Croucher, Gonzalez, Lopez, Rivera and Robak Noes: None 4 Abstain: None Absent: None to delegate General Manager Jose Martinez as the WCG Authority Representative to work with legal counsel on any potential modifications to the existing MOU. b) DISCUSS THE 2025 BOARD MEETING CALENDAR District Secretary Ramos-Krogman noted that the Engineering Committee meeting will be rescheduled to another date as the Water Facilities Committee Luncheon meeting will be held on that same day, June 17. There were no other changes to the board calendar. FISCAL YEAR 2025-2026 BUDGET 10. ADOPT RESOLUTION NO. 4456 TO APPROVE THE FISCAL YEAR 2025-2026 OPERATING AND CAPITAL BUDGET; APPROVE FUND TRANSFERS FOR POTABLE, RECYCLED, AND SEWER; ADOPT THE SALARY SCHEDULE; ADOPT ORDINANCE NO. 597, AMENDING APPENDIX A OF THE DISTRICT’S CODE OF ORDINANCES IMPLEMENTING WATER AND SEWER RATE CHANGES, EFFECTIVE JANUARY 1, 2026; AND DIRECT STAFF TO DRAFT AND MAIL RATE INCREASE NOTICES FOR WATER AND PROPOSITION 218 NOTICES FOR SEWER Staff members provided a PowerPoint presentation to the board. Assistant Chief Financial Officer (CFO) Kevin Koeppen briefly discussed two updates from the board workshop that was held earlier in the year; 1) the settlement between Metropolitan Water District (MWD) and the County Water Authority (CWA); and 2) the global economic uncertainty. Chief Financial Officer Joe Beachem provided details of the proposed 2025-2026 budget for water and sewer. He also discussed the CIP’s six-year budget cycle. He indicated that much of the potable water rate increase is directly attributed to the increasing cost of purchasing water from CWA and MWD. Mr. Beachem provided information on additional impacts contributing to the district’s rate increases. He and Mr. Koeppen responded to additional questions from board members. With regards to the Preliminary Residential Water Rate Comparison, slide 23 of the PowerPoint presentation, Director Croucher commented that the district used a metric- based performance system of 10 units of water use for a ¾” residential meter size to compare where the district stands with other agencies’ water rates. He requested that staff create a system that would provide a comparison of various water use metrics (units of 5, 10, 15, 20, 25, 30) for a ¾” residential meter as it would help provide a more accurate idea of where the district stands compared to other agencies who uses a standard performance water use system to determine their water rates. Staff responded to additional questions from the board. 5 Assistant Chief Financial Officer Kevin Koeppen stated that in response to prior input from the board, staff has worked tirelessly with the district’s Proposition 218 specialist, Ms. Claire Collins, to revamp the notices with a focus on simplification. Draft notices were placed on the Dias for board members to review. A motion was made by Director Gonzalez, seconded by Director Rivera and carried with the following vote: Ayes: Directors Croucher, Gonzalez, Lopez, Rivera and Robak Noes: None Abstain: None Absent: None to adopt Resolution No. 4456 to approve the FY 2025-2026 Operating and Capital Budget; approve fund transfers for potable, recycled, and sewer; adopt the salary schedule; adopt Ordinance No. 597, amending Appendix A of the District’s Code of Ordinances implementing water and sewer rate changes, effective January 1, 2026; and direct staff to draft and mail rate increase notices for water and Proposition 218 notices for sewer. REPORTS 11. GENERAL MANAGER REPORT General Manager Jose Martinez stated that he had nothing to report. 12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Directors Croucher and Robak provided an update on CWA and MWD matters. The focus was on CWA’s budget and the settlement between CWA and MWD. 13. DIRECTORS' REPORTS/REQUESTS Directors Croucher, Gonzalez, Rivera, and Robak shared and/or submitted written reports of meetings they attended. Director Croucher noted that he and Communications Officer Tenille Otero are collaborating to schedule a tour of the CalFire Command Center and its Training Facility at the Otay Water District’s Regulatory Site. 14. PRESIDENT’S REPORT President Lopez shared and/or submitted a written report of meetings he attended. 15. CLOSED SESSION The board recessed to closed session at 5:49 p.m. to discuss the following matters: 6 a) 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 b) EVALUATION OF GENERAL COUNSEL Pursuant to Government Code §54954.5 RETURN TO OPEN SESSION 16. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION. The board reconvened from closed session at 6:40 p.m. and General Counsel Dan Shinoff reported that the board took action on Agenda Item 14b, Evaluation of the General Counsel, and unanimously voted to extend the agreement of general counsel to June 30, 2026. No other reportable actions were taken in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY 17. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 18. ADJOURNMENT With no further business to come before the Board, President Lopez adjourned the meeting at 6:41 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: May 1, 2025 To: May 31, 2025 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 05/02/25 OWD Board Meeting Briefing 2 05/03/25 WCG Water Conservation Garden Butterly Festival (NO CHARGE) 3 05/06/25 SCEDC South County Economic and Dev Council Meeting (NO CHARGE) 4 05/07/25 OWD Regular Board Meeting 5 05/13/25 ACWA Water Conference 6 05/14/25 ACWA Water Conference 7 05/15/25 ACWA Water Conference (NO CHARGE) 8 05/15/25 CSDA Quarterly Dinner Mtg (NO CHARGE) 9 05/16/25 OWD Committee Agenda Briefing 10 05/20/25 OWD Engineering, Operations, Water Resources Committee Meeting 11 05/21/25 OWD Finance and Admin. Committee Meeting 12 05/23/25 OWD Ad Hoc GM Evaluation Committee Mtg. 13 05/28/25 OWD GM Quarterly Meeting 14 05/29/25 OWD Board Agenda Briefing Meeting OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: From: 05/01/25 To: 05/31/25 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) 1 05/06/25 Otay Water District Met with GM Martinez to discuss district matters 2 05/20/25 Otay Water District CWA Matters Meeting 3 05/21/25 Otay Water District Finance Committee Meeting 4 05/29/25 Otay Water District Ad Hoc Legal Services Committee Meeting OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: From: 04/01/25 To: 04/30/25 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) 1 04/02/25 Otay Water District Regular Board Meeting 2 04/15/25 Otay Water District Finance Committee Meeting 3 04/16/25 Otay Water District Special Board Meeting/Budget Workshop 4 04/22/25 Otay Water District CWA Matters Meeting OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Francisco X. Rivera Period Covered: Employee Number: From: 05/01/25 To: 05/31/25 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 05/07/25 OWD May Board Meeting. May Board of Directors Meeting 2 05/13/25 ACWA Conference, Monterey, CA. Attended the Association of California Water Agencies Conference. Local Govt., legal issues. 3 05/14/25 ACWA Conference, Monterey, CA. ACWA training on Work Force Solutions, Rate Setting Legal Tools, Legal Risks, Region 10 Mtg. 4 05/15/25 ACWA Conference, Monterey, CA. Wellness Activity, Exhibitor Hall, JPA’s, Engineering & Accounting, Keynote &Closing. 5 05/16/25 Quarterly meeting with GM OWD Quarterly Meeting with GM Martinez to discuss issues, CIP status & other business. Teams Mark Robak From:4/1/2025 4/30/2025 ITEM DATE MEETING PURPOSE / ISSUES 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 Mark Robak From:5/1/2025 5/31/2025 ITEM DATE MEETING PURPOSE / ISSUES 1 5/1/2025 San Diego Chamber of Commerce Sustainability and Industry Committee 2 5/2/2025 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 3 5/7/2025 Otay Water District Board Meeting 4 5/11/2025 ACWA Conference Spring Conference 5 5/12/2025 ACWA Conference Spring Conference 6 5/13/2025 ACWA Conference Spring Conference 7 5/14/2025 ACWA Conference Spring Conference 8 5/15/2025 ACWA Conference Spring Conference 9 5/15/2025 CSDA Dinner Quarterly Dinner - NO CHARGE 10 5/20/2025 East County Chamber of Commerce Government Affairs Committee - NO CHARGE 11 5/20/2025 Otay Water District Engineering, Operations, and Water Resources (EO&WR) Committee 12 5/20/2025 Otay Water District Discuss upcoming SDCWA Board Meeting with Otay GM - NO CHARGE 13 5/21/2025 East County Caucus Discuss upcoming SDCWA Board Meeting with neighboring agencies - NO CHARGE 14 5/22/2025 Safety Officers Appreciation Dinner Annual community event in Spring Valley - NO CHARGE 15 5/26/2025 El Cajon Elks Lodge Memorial Day Event - NO CHARGE 16 5/27/2025 Otay Water District Directors Quarterly Meeting 17 5/27/2025 City of Chula Vista State of the City at Gaylord Pacific - NO CHARGE 18 5/29/2025 East County Chamber of Commerce Monthly Board of Directors Meeting 19 5/29/2025 East County Chamber of Commerce Launch party for Chamber App - NO CHARGE Pay To:Period Covered Employee Number OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Water Conservation Garden Authority Joint Powers Agreement (JPA) Memorandum of Understanding (MOU) 1.Sets fixed contribution amounts for the Sweetwater Authority and San Diego County Water Authority (SDCWA) (amount to be determined by SDCWA if its board approves continuation). 2.Provides the ability to submit a letter of withdrawal at any time during the year, but retains a 12-month notice. 3.Acknowledges that the Grossmont-Cuyamaca College District requires a minimum 18-month irrevocable notice to assume garden operations upon termination of the garden JPA or risks closure of the garden for a period of time. 4.Provides that other sections of the JPA agreement will be cleaned up to reflect no contract with Friends of the Garden. This MOU will address the immediate issues and provide a vehicle for the JPA to have time to amend the agreement between July 1, 2025 and December 31, 2025, while continuing to operate the Water Conservation Garden. The MOU addresses these key areas: