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Home My WebLink About02-04-26 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY February 4, 2026 The meeting was called to order by President Rivera at 3:30 p.m. 1. ROLL CALL Directors Present: Rivera, Gonzalez, Croucher, and Lopez Directors Absent: Robak Staff Present: General Manager, Jose Martinez; General Counsel, Dan Shinoff; Chief Financial Officer, Joe Beachem; Chief of Administrative Services, Kevin Koeppen; Engineering Manager, Beth Gentry; Chief of Operations, Andrew Jackson; and District Secretary, Jenny Diaz. President Rivera indicated that Board action was required to approve the remote attendance of Director Croucher. A motion to approve the remote attendance of Director Croucher was made by Director Gonzalez, seconded by President Rivera, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, and Lopez Noes: None Abstain: Director Croucher Absent: Director Robak 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA A motion to approve the agenda was made by Director Lopez, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak 4. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF JANUARY 7, 2026, AND SPECIAL BOARD MEETING OF DECEMBER 8, 2025 2 A motion to approve the minutes of the regular board meeting of January 7, 2026, and special board meeting of December 8, 2025, was made by Director Lopez, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak 5. 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 President Rivera opened the floor for public participation on any subject matter within the board’s jurisdiction. There were no requests to speak from virtual attendees or from anyone present in the Board room. CONSENT ITEMS 6. 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: The Directors indicated they had no comments and did not wish to pull any items for discussion. A motion to approve the following consent calendar items was made by Director Croucher, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak a) AUTHORIZE THE GENERAL MANAGER TO AWARD A PURCHASE ORDER TO SLOAN ELECTRIC, INC. IN AN AMOUNT NOT-TO-EXCEED $211,316.02 FOR THE REPLACEMENTS OF PUMPS AND MOTORS AT THE 980-2 AND 850-2 PUMP STATIONS (JUAN TAMAYO) b) AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH BURKE, WILLIAMS, & SORENSEN, LLP INCREASING THE NOT-TO-EXCEED AMOUNT BY $50,000, FOR A REVISED TOTAL NOT-TO-EXCEED AMOUNT OF $125,000 (SUZIE LAWSON) 3 ACTION ITEMS 7. BOARD a) ADOPT RESOLUTION #4469 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPOINTING ___________ AS THE OTAY WATER DISTRICT’S REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) (JOSE MARTINEZ) General Manager Martinez presented the resolution and reminded Board members that a year ago Director Rivera was appointed to the first seat vacated by Director Croucher. He further indicated that this term is set to expire at the end of March and that an action item would be needed to either reappoint or appoint someone to the next 6-year term. Board members were provided an opportunity for comments and/or questions. President Rivera commented that he has learned a lot in the role, found the material interesting and important for the region, and appreciated the board’s confidence. A motion to appoint Director Frank Rivera as the representative to the Board of Directors of the San Diego County Water Authority (First Seat) was made by Director Gonzalez, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak b) ADOPT RESOLUTION #4467 APPROVING THE SECOND AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT (SARA), AND ADOPT RESOLUTION #4468 APPROVING THE METROPOLITAN SEWERAGE SYSTEM ADMINISTRATIVE AGREEMENT NO. 1 BETWEEN THE OTAY WATER DISTRICT AND THE CITY OF SAN DIEGO (BETH GENTRY) Engineering Manager, Beth Gentry, provided the staff report and presentation, and responded to Board members’ questions and comments. Ms. Gentry introduced two guests: Ms. Lisa Celaya, Executive Assistant Director at the City of San Diego’s Public Utilities Department, and Mr. Jerry Jones, Chair of the Metro Wastewater Joint Powers Authority, and representative of the City of Lemon Grove. Ms. Celaya and Mr. Jones were acknowledged for their extensive work on SARA and the Administrative Agreement (Agreement). The President expressed his appreciation to our guests for attending. 4 President Rivera asked for clarification on the Agreement and FOG program, and Ms. Gentry confirmed participating agencies will maintain control. Director Gonzalez asked about the Agreement’s duration. Ms. Gentry confirmed it expires in 2065. Director Lopez questioned if there would be sufficient sewage for the Pure Water program given conservation trends. Ms. Gentry confirmed that analyses for phase one indicate that the sewage quantity and location is adequate. Ms. Celaya further added acknowledged the dilemma of reduced average flows due to conservation and high peak flows from rain events. She stated they are “actively working as a region of how to address ensuring we have systems in place for the average and then also for these peak flow events so that we do not spill.” Director Croucher asked about wastewater concentration and how it was addressed. Ms. Gentry stated that the City of San Diego has conducted extensive technical studies, and that phase one was for the Pure Water program. She further indicated that the remaining phases are being evaluated for a variety of factors including the concentration into the collection system. Ms. Celaya added that the changed billing methodology addresses strengths and flows and fixed costs. Further noting that the system’s reliability benefits everybody. A motion to adopt Resolution #4467 was made by Director Croucher, seconded by Director Gonzalez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak A motion to adopt Resolution #4468 was made by President Rivera, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak c) ADOPT RESOLUTION #4466 AUTHORIZING THE ESTABLISHMENT OF A NEW INVESTMENT ACCOUNT AT NEIGHBORHOOD NATIONAL BANK FOR THE PURPOSE OF PARTICIPATING IN THE CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS) DEPOSIT INVESTMENT PROGRAM (JON RAVAGLIOLI) Finance Manager, Jon Ravaglioli, provided the staff report and presentation, and responded to Board members’ questions and comments. 5 President Rivera asked for clarification on whether the action would involve a single deposit, or if it was to authorize having an account with the bank and making certificate deposits on a regular basis. Mr. Ravaglioli clarified this was to open an account and make a single deposit, which would get split among a few different institutions by Neighborhood National through the CDARS program. A motion to adopt Resolution #4466 was made by President Rivera, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak d) DISCUSS THE 2026 BOARD MEETING CALENDAR AND AUTHORIZE DATE CHANGE FOR THE MAY BOARD MEETING (JENNY DIAZ) District Secretary Jenny Diaz stated that the Engineering, Operations, and Water Resources Committee meeting will be held on Tuesday, February 17, 2026, at 12:00 pm. Ms. Diaz also stated that the Finance & Administration Committee meeting will be held on Wednesday, February 18, 2026, at 12:00 pm. Also, Ms. Diaz indicated that this year’s ACWA Conference will be held on May 5 – 7, 2026. In light of this and to allow the opportunity for Directors and staff to attend the annual conference, she indicated that the May board meeting would need to be rescheduled from May 6 to May 13, requiring Board action. Director Croucher supported the change and shared his hope of returning to in- person meetings within one to two months. Director Lopez inquired about budget discussions. General Manager Martinez stated that budget discussions would take place at a special board meeting in the latter half of April and for final action at the June board meeting. A motion to approve the date change for the May board meeting was made by Director Gonzalez, seconded by Director Lopez, and carried with the following vote: Ayes: Directors Rivera, Gonzalez, Croucher, and Lopez Noes: None Abstain: None Absent: Director Robak No other changes were noted or made to the Board meeting calendar. 6 REPORTS 8. GENERAL MANAGER’S REPORT General Manager Martinez highlighted two items: Cybersecurity Grant – The District was officially awarded a cybersecurity grant of just under $250,000. This grant was first reported in December 2024 but was delayed at the federal level. Funding has been received and work can now proceed. Budget Preparation – Staff has been working for months on the budget. A workshop is planned for the latter half of April (tentatively April 29, 2026), with the budget coming before the Board for approval at the June board meeting. 9. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Rivera reported on the SDCWA Board of Directors meeting held on January 22, 2026. Among the topics discussed were the monthly treasurer’s report on investments and cash flows, the 2026 Board meeting calendar dates and amendments, adoption of the 2026 long-range financing plan, approval of the Memorandum of Understanding with the County and City of San Diego for the implementation of the integrated regional water management program activities, contracts, position appointments, and a retirement resolution for Director Ditas Yamani of National City. 10. PRESIDENT’S REPORT/REQUESTS President Rivera detailed his activities since the last board meeting, including the SDCWA orientation and meetings, and a tour of the Pure Water Southern California Innovation Center. A report from President Rivera will be submitted to the District Secretary and attached to the minutes of today’s meeting. 11. DIRECTORS’ REPORTS/REQUESTS Director Croucher inquired into the County Water Authority’s regional water demands and how we are addressing input given that the Fallbrook and Rainbow water districts are no longer regional partners for several of our projects. President Rivera responded that the effects are being discussed and are looking into different ways of transferring water within the region. Director Croucher expressed concern noting that Otay and our ratepayers should not be paying more. He further conveyed his appreciation for President Rivera’s representation on the issue. President Rivera indicated that their water purchase rate will likely be different. 7 Director Gonzalez reported on her work with the Water Conservation Garden (WCG) committee and shared that the WCG’s “TomatoMania” event would take place in March. She further added that WCG visits from Otay Water residents increased over 50% from the previous year. She also urged everyone to vote for Otay Water in the East County Chamber of Commerce awards, which was nominated for “Environmental Stewardship”. Director Lopez praised the success of the WCG and its director, Lauren Magnuson. He also thanked everyone for their condolences on the recent passing of his mother. President Rivera requested that a report on the Metro Wastewater Joint Powers Authority (Metro JPA) be added to future meeting agendas for updates, similar to the San Diego County Water Authority, noting that Metro JPA is dynamic and involves significant staff work. Reports from the Directors will be submitted to the District Secretary, which will be attached to the minutes for today’s meeting. RECESS TO CLOSED SESSION 12. CLOSED SESSION The board recessed to closed session at 4:18 p.m. to discuss the following matters: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9 (d)(2)]; ONE (1) CLAIM: STEPHANIE AND ROBERT HERBER SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (d)(2) OF GOVERNMENT CODE §54956.9 (1 CASE – CLAIM) b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9 (d)(2)]; ONE (1) CLAIM: STEPHEN AND JEANNE HERMAN SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO SUBDIVISION (d)(2) OF GOVERNMENT CODE §54956.9 (1 CASE – CLAIM) c) CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO CALIFORNIA GOVERNMENT CODE §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: From: 1/1/2026 To: 1/31/2026 ITEM DATE MEETING PURPOSE/ISSUES DISCUSSED 1 1/7/26 Otay Water District Regular Board Meeting 2 3 4 5 6 7 8 9 OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: 1/1/2026 – 1/31/2026 Employee Number: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED 1 1/7/26 OWD Regular Board Meeting 2 1/8/26 FLOW Fellowship Latinos of Water 3 1/9/26 CVCC Chula Vista Chamber of Commerce First Friday Breakfast (No Charge) 4 1/21/26 F&A Finance & Administration Committee 5 6 7 8 9 10 Recommendation That the Board of Directors (Board) authorize the General Manager to execute an amendment to the consulting services agreement (Agreement) by and between the Otay Water District (District) and Burke, Williams & Sorensen, LLP (Consultant), to: •Increase the not-to-exceed amount by $50,000; and •Increase the total not-to-exceed amount from $75,000 to $125,000 1 ESTABLISHMENT OF NEW BANK ACCOUNT NEIGHBORHOOD NATIONAL BANK (NNB) •Purpose: Invest in the CDARS Program •Allows for simplified investments in CDs within FDIC-insured limits •Otay has participated in the CDARS Program in the past •Neighborhood National Bank •Is a CDFI (Community Development Financial Institution) •Invests in underserved communities •Other local agencies participate with NNB, including Sweetwater Authority and the City of Chula Vista