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Home My WebLink About10-01-25 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY October 1, 2025 1. The meeting was called to order by President Lopez at 3:35 p.m. 2. ROLL CALL Directors Present: Directors Gonzalez, Lopez, Rivera, and Robak Directors Absent: Director Croucher Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, System Operations Manager Jake Vaclavek Cameron, District Secretary Tita Ramos-Krogman and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by President Lopez to have Agenda Item 9a (High School Internship Program Update) presented to the board after Agenda Item 4 (Approval of the Agenda). The motion was seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Director Croucher to present Agenda Item 9a, High School Internship Program Update, following the approval of the agenda. 5. HIGH SCHOOL INTERNSHIP PROGRAM UPDATE Chief of Administrative Services Adolfo Segura provided the staff report to the board and displayed a draft flyer (Attachment A of the staff report). He introduced Mr. Antonio Guiterrez, Program Manager of Career Technical Education Office of College and Career Readiness from Sweetwater Union High School District, to provide additional details of the internship program. Mr. Segura and Mr. Guiterrez responded to questions and comments from the board. 2 6. APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING OF SEPTEMBER 3, 2025, AND SPECIAL BOARD MEETING OF SEPTEMBER 8, 2025 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: Director Croucher to approve the minutes of the regular board meeting of September 3, 2025, and special board meeting of September 8, 2025. 7. 2025 END-OF-YEAR LEGISLATIVE UPDATE Communications Officer Tenille Otero provided the staff report to the board and introduced Baltazar Cornejo, BHFS Policy Advisor, who attended the meeting via Zoom to present a PowerPoint Presentation of the 2025 end-of-year legislative update. Ms. Otero and Mr. Cornejo responded to questions and comments from the board. 8. 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 No one wished to be heard. PUBLIC HEARING 9. PUBLIC HEARING ON RATES AND CHARGES THE BOARD WILL BE HOLDING A PUBLIC HEARING ON THE PROPOSED SEWER RATES AND CHARGES; AND IF NO MAJORITY PROTEST IS RECEIVED: a) ADOPT ORDINANCE NO. 601 APPROVING THE METHODOLOGIES USED IN THE COST OF SERVICE STUDY, ADOPTING THE FIVE-YEAR SCHEDULE (PRESENTED IN ATTACHMENT C) OF RATES AND CHARGES DEVELOPED USING THOSE METHODOLOGIES TO MEET THE DISTRICT’S REVENUE REQUIREMENTS AS PROPOSED IN THE FY 2025-2026 OPERATING AND CAPITAL BUDGET, AND AMENDING SECTION 53 OF THE CODE OF ORDINANCES (CONDITIONS FOR SEWER SERVICE AND APPENDIX A; AND AUTHORIZE, FOR A PERIOD OF FIVE YEARS, PURSUANT TO GOVERNMENT CODE SECTION 53756, TO PASS THROUGH UNFORSEEN INFLATIONARY INCREASES DIRECTLY TO CUSTOMERS 3 IN FUTURE YEARS IF OVERALL INFLATION OR CONSTRUCTION INFLATION INCREASES EXCEED PROJECTED ASSUMPTIONS, AS FOLLOWS: • IF THE ANNUAL CHANGE IN THE CONSUMER PRICE INDEX (CPI) FOR THE SAN DIEGO CARLSBAD AREA AS OF JANUARY 31 OF THE PRECEDING YEAR EXCEEDS THE ASSUMED RATE FOR THE APPLICABLE YEAR, THE DISTRICT WILL PASS THROUGH THE DIFFERENCE • IF THE CITY OR COUNTY RATES EXCEED 6.0% IN ANY YEAR, OR 8.88% IN FY 2028, THE DISTRICT WILL PASS THROUGH THE DIFFERENCE • IF THE ANNUAL CHANGE IN THE ENGINEERING NEWS RECORD COST CONSTRUCTION INDEX (CCI), MEASURED FEBRUARY TO FEBRUARY OF THE FOLLOWING YEAR, EXCEEDS THE ASSUMED RATE FOR THE APPLICABLE YEAR, THE DISTRICT WILL PASS THROUGH THE DIFFERENCE Assistant Chief Financial Officer Kevin Koeppen provided a PowerPoint presentation to the board. President Lopez opened the public hearing at 4:21 p.m. District Secretary Tita Ramos-Krogman stated that the district did not receive any protest letters or comments from the public. Mr. Koeppen responded to questions and comments from the board. With no further comments from the board and no public protest and comments from the public, President Lopez closed the public hearing at 4:38 p.m. 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: Director Croucher to approve staff’s recommendations. 4 ACTION ITEMS 10. BOARD a) ADOPT RESOLUTION NO. 4462 OF THE BOARD OF DIRECTORS OF OTAY WATER DISTRICT APPOINTING DIRECTOR FRANCISCO X. RIVERA AS THE NEW REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (FIRST SEAT) General Manager Jose Martinez stated that as a result of the excused medical condition of Director Gary Croucher, staff is recommending that the board adopt Resolution No. 4462 to appoint a new director to the San Diego County Water Authority (First Seat). The remaining term of this seat will terminate in March 2026. A motion was made by President Lopez, seconded by Director Robak and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Director Croucher to adopt Resolution No. 4462 of the Board of Directors of Otay Water District appointing Director Francisco X. Rivera to the San Diego County Water Authority (First Seat). b) ADOPT RESOLUTION NO. 4463 TO CONFIRM DIRECTORS FRANCISCO X. RIVERA AND MARK ROBAK AS THE OTAY WATER DISTRICT’S REPRESENTATIVES TO THE SAN DIEGO COUNTY WATER AUTHORITY, EACH TO VOTE IN THE ABSENCE OF THE OTHER 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: Director Croucher to adopt Resolution No. 4463 of the Board of Directors of Otay Water District to confirm Directors Francisco X. Rivera and Mark Robak as the Otay Water District’s representatives to the San Diego County Water Authority each to vote in the absence of the other. c) AUTHORIZE THE GENERAL MANAGER TO CHANGE INSURANCE CARRIER AND ENTER INTO A THREE-YEAR AGREEMENT WITH NEW YORK LIFE INSURANCE FOR THE DISTRICT’S LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT, AND SHORT/LONG-TERM DISABILITY 5 INSURANCE FROM JANUARY 1, 2026, THROUGH DECEMBER 31, 2028, IN AN APPROXIMATE AMOUNT OF $265,827 (BASED ON CURRENT CENSUS INFORMATION AND SUBJECT TO CHANGE) Human Resources Manager Suzie Lawson provided the staff report and responded to questions and comments from the board. A motion was made by President Lopez, seconded by Director Gonzalez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendations. d) AUTHORIZE THE GENERAL MANAGER TO AWARD A CONTRACT TO MERINO LANDSCAPE, INC. TO COMPLETE PHASE II OF THE ADMINISTRATION BUILDING LANDSCAPE UPDATE IN AN AMOUNT NOT- TO-EXCEED $417,309 Purchasing Manager Kent Payne provided the staff report and responded to questions and comments from the board. A motion was made by Director Rivera, seconded by President Lopez and carried with the following vote: Ayes: Directors Gonzalez, Lopez, Rivera, and Robak Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendation. e) DISCUSS THE 2025 BOARD MEETING CALENDAR District Secretary Tita Ramos-Krogman provided dates for the October 2025 committee meetings. No changes were made to the board calendar. INFORMATIONAL ITEM 11. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) ANNUAL DIRECTORS’ EXPENSE REPORT FOR FISCAL YEAR 2025 6 Accountant Miriam Perez provided a PowerPoint presentation to the board and responded to their questions and comments. b)FISCAL YEAR 2025 YEAR-END REPORT OF THE DISTRICT’S FISCAL YEAR 2023-2026 STRATEGIC PLAN Information Technology Manager Michael Kerr provided a PowerPoint presentation and responded to questions and comments from the board. c)SOCIAL MEDIA, MOBILE APPLICATION, AND WEBSITE ANALYTICS UPDATE Communications Assistant Eileen Salmeron provided a PowerPoint presentation and responded to questions and comments from the board. REPORTS 11.GENERAL MANAGER REPORT General Manager Martinez shared information on FBI briefing for San Diego Critical Infrastructure Partners and provided an update on the district’s FY 2025 Audit. He also shared that the Operations management team received formal recognition and appreciation from the American Water Works Association (AWWA) for their significant contributions to the revision of the AWWA M44 Distribution Valves Manual. 12.SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Robak provided an update on CWA matters discussed at its September 25, 2025, board meeting. 13.DIRECTORS' REPORTS/REQUESTS Written reports from Directors Gonzalez, Lopez, Rivera, and Robak were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 14.PRESIDENT’S REPORT A written report from President Lopez will be submitted to District Secretary Ramos- Krogman and will be attached to the minutes for today’s meeting. 15.CLOSED SESSION The board recessed to closed session at 5:40 p.m. to discuss the following matters: a)CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code §54956.8 7 Property: SALT CREEK GOLF COURSE 525 HUNTE PARWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel Under negotiation: Disposition of Property b)THREATENED LITIGATION GOVERNMENT CODE §54956.9 CLAIMANT: Robinhood Point Association c)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 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 7:25 p.m. and General Counsel Dan Shinoff reported that no reportable actions were taken. 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 7:25 p.m. President ATTEST: District Secretary Mark Robak From:9/1/2025 9/30/2025 ITEM DATE MEETING PURPOSE / ISSUES 1 9/3/2025 Otay Water District Monthly Board Meeting 2 9/4/2025 San Diego Regional Chamber of Commerce Sustainability & Industry Committee 3 9/4/2025 Sweetwater Authority Ribbon-cutting ceremony for the new Shared Maintenance Road and Trail - NO CHARGE 4 9/4/2025 San Diego Regional Chamber of Commerce Mixer at SDSU Mission Valley - NO CHARGE 5 9/5/2025 East County Chamber of Commerce First Friday Breakfast - NO CHARGE 6 9/8/2025 Otay Water District Special Board Meeting - 870-2 Reservoir Tour 7 9/16/2025 East County Chamber of Commerce Government Affairs Committee - NO CHARGE 8 9/16/2025 CSDA San Diego Chapter Water Utilities Committee Lunch meeting to hear Jennifer Pierre, General Manager, State Water Contractors 9 9/17/2025 East County Economic Development Council Board Meeting at Grossmont College 10 9/18/2025 Otay Mesa Chamber of Commerce Awards Reception - NO CHARGE 11 9/21/2025 California WateReuse Conference Annual Conference 12 9/22/2025 California WateReuse Conference Annual Conference 13 9/23/2025 California WateReuse Conference Annual Conference 14 9/25/2025 East County Chamber of Commerce Monthly Board Meeting 15 9/29/2025 Otay Water District Salt Creek Ad-Hoc Committee 16 9/30/2025 East County Economic Development Council Manufacturing Expo at Cuyamaca College - NO CHARGE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number