HomeMy WebLinkAbout07-01-20 Board Minutes 1
MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY July 1, 2020
1. The meeting was called to order by General Manager Martinez at 3:31 p.m. 2. ROLL CALL
Directors Present: Croucher, Gastelum, Robak (arrived at 3:34 p.m.), Smith and
Thompson Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief of
Engineering Rod Posada, Chief Financial Officer Joe
Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list.
3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA
General Manager Jose Martinez proposed that item 7a, CONSIDER THE MAY 26,
2020 PURCHASE AGREEMENT FOR $180,000 FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND THE SECOND OFFER TO PURCHASE SAID PROPERTY, be moved to follow the closed session discussion.
A motion was made by Director Smith, and seconded by Director Thompson and
carried with the following vote: Ayes: Directors Croucher, Gastelum, Smith and Thompson Noes: None
Abstain: None
Absent: Director Robak to approve the agenda with the proposed amendment.
5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF MAY 6,
2020 AND THE SPECIAL BOARD MEETINGS OF MARCH 20, 2020, MARCH 23, 2020, MARCH 25, 2020, AND APRIL 29, 2020 A motion was made by President Croucher, and seconded by Director Thompson
and carried with the following vote:
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Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None Absent: None to approve the minutes of the regular board meeting of May 6, 2020 and the special
board meetings of March 20, 2020, March 23, 2020, March 25, 2020, and April 29,
2020. 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
No one wished to be heard. CONSENT CALENDAR
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:
A motion was made by President Croucher, and seconded by Director Gastelum
and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to approve the following consent calendar item:
a) APPROVE THE CONTINUATION OF THE MORATORIUM ON ANY
CHANGES TO ALL DISTRICT CAPACITY AND ANNEXATION FEES TO OCTOBER 31, 2020 ACTION ITEMS
8. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR There were no changes to the board meeting calendar.
REPORTS 9. GENERAL MANAGER’S REPORT
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General Manager Martinez presented information from his report that included an
update on the District’s response to the COVID-19 pandemic; potable and recycled
water purchases; collections and bad debt exposure; sewer 218 hearing notices and water rate increase notices; property, liability and workers’ compensation insurance; the lobby re-opening; the 870-2 Pump Station Replacement Project; and Campo Road Sewer Replacement Project. Staff responded to questions and
comments from the board.
President Croucher stated that the District would continue with virtual meetings through the end of the year.
10. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith reported that CWA was able to reduce their rate increase from 6.3% to 4.8% due to a couple reasons. Due to the recession, the escalator for Cost of Living and Cost of Service was reduced for water purchased from Imperial Irrigation
District (IID). Also, CWA shifted the funding for the dredging associated with the
Carlsbad Desalination Plant to this current year. He also reported on Padre Dam MWD’s East County Advanced Water Purification Program (the project would upgrade their treatment plant to produce highly purified water), that water for the program will be sent to Helix WD for treatment and then sent back to Padre Dam
MWD. He stated that he mentions this project as it is something the Otay WD could
consider when discussing recycled water with Sweetwater Authority. The District could possibly have recycled water treated by Sweetwater Authority and sent back to Otay WD. He lastly indicated that he has been looking at what is occurring in the State of California and it is estimated that due to COVID-19, there will be a 21%
reduction in housing construction. He was wondering how housing construction in
the District’s service area compared with California as a whole. He stated that he thought this would be interesting to know. President Croucher shared with regard to Fallbrook PUD and Rainbow MWD’s
interest in detaching from CWA, that some member agencies were still not aware of
their request to detach. He stated that either Fallbrook PUD or Rainbow MWD was inferring that Otay WD was sending out or requesting information concerning the detachment. He confirmed that the District is not sending out information but is asking questions concerning the detachment. The District is questioning not only
impacts to Otay WD, but also potential indirect impacts, such as, voting rights at
MWD, preferential rights within the County, and actions that Eastern MWD and other agencies may have taken to undermine San Diego County as a whole at MWD. LAFCO has scheduled an informational meeting on July 6, 2020 to outline the process they will utilize to review Fallbrook PUD and Rainbow MWD’s request
to detach. President Croucher indicated that he has been appointed as one of three
CWA representatives to sit on LAFCO’s review committee on the detachment matter. He also shared that CWA is working with legislators to acquire approval to possibly
generate power at the San Vicente Reservoir which could help to lower costs
County-wide. CWA is also continuing to look at Lake Mead Storage to either attain
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its own account or obtain flexibility on some of the deliveries which would benefit
everyone within the seven (7) basin states. He shared that CWA’s Regional
Conveyance System project is still being reviewed as to whether they will move the project to Phase 2. President Croucher lastly reported that CWA’s is continuing to monitor possible
impacts from their lowered water sales and its rate increase and how it is impacted
by MWD’s transportation rate. MWD will be reviewing their budget and rate increase in September and CWA will have an opportunity to review MWD’s proposed budget and provide input on opportunities they feel MWD could take advantage of to lower their rate increase.
11. DIRECTORS' REPORTS/REQUESTS Directors Smith, Thompson, Gastelum and Robak reported that they have submitted their written reports to District Secretary Cruz and that their reports will be
attached to the minutes for today’s meeting.
Director Thompson indicated that he is interested in attending LAFCO’s committee on July 6 discussing Fallbrook PUD and Rainbow MWD’s request to detach from CWA and asked if the meeting information could be forwarded to him.
Director Robak inquired if the Padre Dam Advanced Purification Program is believed to be cost effective. Director Smith indicated that the worth of water supply diversification projects are included in focus group surveys. The focus group surveys indicate that the public feels that diversification water projects are worth
about 10% of the overall rate increase (the new added water as a percentage of the
total). He stated that he believes that the project is very close to the 10%. As a per acre foot cost, it is expensive water, but the Carlsbad Desalination Project is also expensive water. Director Smith indicated that he feels, however, indirect and direct potable reuse is the future for water diversification.
Director Robak also reported that he attended the LAFCO Special District’s Advisory Committee where they discussed the Fallbrook PUD and Rainbow MWD’s interest in detaching from CWA.
12. PRESIDENT’S REPORT
President Croucher requested that District Secretary Cruz provide board members a copy of the District’s board policy related to meetings and per diems. He asked that the board review the process for those meetings requiring preapproval by the
board president and asked that board members contact him ahead of those
meetings for authorization. He stated this would allow for compliance of the policy and if the board wished to revisit the policy, they can do so, but he would like the board to follow the current policy.
13. CLOSED SESSION
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The board recessed to closed session at 4:20 p.m. to discuss the following matters:
a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] b) LIABILITY CLAIMS [GOVERNMENT CODE §54956.95]
CLAIMANT: THAIR MIKAIL AGENCY CLAIMED AGAINST: OTAY WATER DISTRICT
c) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to
California Government Code section 54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY
CHULA VISTA, CA 91914
Agency negotiator: General Counsel Under negotiation: Disposition of Property
d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT;
CASE NO. 37-2020-00001510-CU-WM-CTL
e) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT;
CASE NO. 37-2017-00019348-CU-WM-CTL 14. 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 5:33 p.m. and General Counsel Dan Shinoff reported that the board took two reportable actions. The board voted unanimously, five to zero, to reject the tort claim submitted by Thair Mikail.
The board also voted unanimously, five to zero, to authorize General Manager
Martinez to enter into a listing agreement for the sale of the Salt Creek Property with Colliers International for a fee that is based on a scale proposed by Colliers International: $0 to $5 million 0.65%
$5 to $10 million 0.70%
Over $10 million 0.75%
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ACTION ITEM
15. CONSIDER THE MAY 26, 2020 PURCHASE AGREEMENT FOR $180,000 FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND THE SECOND OFFER TO PURCHASE SAID PROPERTY
Engineering Manager Bob Kennedy indicated that the District received another offer for the Buena Vista Avenue Property in Spring Valley. This is the fourth offer and it was received in May 2020 from B AVE, LLC for $180,000. Today, the District received an addendum to the purchase agreement which identifies the buyer as
Ranchito Buena Vista, LLC. Mr. Kennedy indicated that since the receipt of the
offer from B AVE, LLC (or Ranchito Buena Vista, LLC) and presentation of this item to the Committee, the District was informed of another offer for the property from Ms. Erika Rodriguez for $222,500 dated June 24, 2020.
A motion was made by President Croucher and seconded by Director Thompson
who amended the motion for the board to delegate to the General Manager the negotiation of the contingency period at his discretion. General Counsel suggested that the board include in the motion that if a counteroffer is received that the General Manager clarifies any removal of contingencies and request that there be
no assignee so the District knows who the buyer is.
President Croucher and Director Thompson accepted the amendments and the motion carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None Abstain: None Absent: None
that the District accept the highest offer for the Buena Vista Avenue property,
delegate to the General Manager the negotiation of the contingency period at the General Manager’s discretion, and if a counteroffer is received that the General Manager clarifies any removal of contingencies and request that there be no assignee so the District knows who the buyer is.
Director Thompson indicated that he would like to see the contingency period negotiated down to 17 days. President Croucher indicated that once the District has worked out the 17 days, that it is his intention to bring this item to a special board meeting for action so the sale is not delayed further.
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.
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17. ADJOURNMENT
With no further business to come before the Board, President Croucher adjourned the meeting at 5:39 p.m.
___________________________________ President
ATTEST:
District Secretary
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Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 5/22/20 To: 6/30/20
Item No. Date Meeting Attended Description
1.
5/22/20 Target Solutions Training Coronavirus 101: What You Need to Know
2. 6/3/20 OWD Board Meeting OWD Regular Board Meeting
3.
6/8/20 Meeting with GM & Gen
Counsel
Discuss District Matters
4.
6/9/20
Meeting with GM & Gen
Counsel
Discuss District Matters
6/9/20
Committee Agenda
Briefing
Met w/ General Manager Martinez to review items that
will be presented at the June committee meetings
5.
6/12/20 Meeting with Dir Gastelum & Gen Counsel Discuss District Matters
6.
6/23/20 Board Agenda Briefing Met with General Manager Martinez and General Counsels Shinoff and Blumenfeld to review the July Board Meeting Agenda
6/23/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters
Board of Directors Meetings Attended Form
Director Name: Tim Smith Period Covered:
From: 6/1/20 To: 6/30/20
Item
No.
Date Meeting Attended Description
1.
6/3/20
OWD Regular Board
Meeting
Monthly Board Meeting (video conf.)
2.
6/23/20
CWA Matters Meeting
Discuss CWA Matters (video conf.)
3.
6/24/20
East County Caucus Meeting
Discuss East County issues with agencies and CWA (video
conf.)
4.
6/25/20
Coronavirus 101 Training
Took updated training on COVID-19 (video training)
5.
6.
7.
8.
9.
10.
-Instructions on Reverse -
Board of Directors Meetings Attended Form
Director Name:Mitchell Thompson Period Covered:
From: 6/1/2020 To: 6/30/2020
Item
No.
Date Meeting Attended Description
1.
2.6/2/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting
3.6/3/20 OWD Board Meeting See agenda, regular monthly board meeting
4.6/15/20 OWD F&A Committee Mtg See agenda
5.
6.
7.
8.
9.
10.
-Instructions on Reverse -
Mark Robak
7014 From:6/1/2020 6/30/2020
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 6/2/2020 East County Chamber of
Commerce
Government Afffairs & Infrstraucture
Committee 0 0
2 6/3/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0
3 6/15/2020 Finance & Administration
Committee
Discussed District finance and administration
items 0 0
4 6/19/2020 LAFCO Special Districts
Advisory Board Discussed various efficiency matters 0 0
5 6/25/2020 SDCWA Board Meeting Monthly Meeting 0 0
0 0
$ 760
0 Miles
GM Receipt: Date: ___________________
Pay To:Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($152 PER MEETING)
Total Meeting Per
Diem:
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM