HomeMy WebLinkAbout05-06-20 Board Minutes 1
MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY May 6, 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, 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 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 agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF JANUARY
8, 2020 AND FEBRUARY 5, 2020; AND THE SPECIAL BOARD MEETINGS OF
JANUARY 27, 2020, JANUARY 29, 2020, AND FEBRUARY 3, 2020 A motion was made by President Croucher, and seconded by Director Smith. Prior to the vote, Director Smith indicated he wished to request a change to the minutes
of January 8, 2002, page 2, item 6, the title for the director who seconded the
motion to approve the election of vice president should be Director Smith rather that
President Smith. President Croucher indicated he would amend his motion to accept Director Smith’s change. The motion and second carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
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Noes: None
Abstain: None
Absent: None to approve the minutes of the regular board meetings of January 8, 2020, with the change noted above, and February 5, 2020; and the special board meetings of
January 27, 2020, January 29, 2020, and February 3, 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 Director Thompson, 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) RECEIVE THE DISTRICT’S INVESTMENT POLICY, POLICY NO. 27, OF
THE DISTRICT’S CODE OF ORDINANCES FOR REVIEW AND RE-
DELEGATE AUTHORITY FOR ALL INVESTMENT RELATED ACTIVITIES TO THE CHIEF FINANCIAL OFFICER, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 53607
ACTION ITEMS
8. FINANCE AND ADMINISTRATION a) PRESENT THE RESULTS OF THE CURRENT SEWER COST OF SERVICE STUDY PREPARED BY HDR ENGINEERING, INC. AND
REQUEST THAT THE BOARD DIRECT STAFF TO PREPARE THE FISCAL YEAR 2021 BUDGET USING THE COST OF SERVICE STUDY RESULTS Assistant Chief of Finance Kevin Koeppen indicated that staff would be presenting the results of the Sewer Cost of Service Study (COSS) prepared by Mr. Sean
Koorn, Association Vice President of HDR Engineering, Inc. (HDR). Please
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reference Attachment A (Committee Action) to the staff report for the details of
Mssrs. Koeppen and Koorn’s presentations. Staff and Mr. Koorn responded to
questions and comments from the board. A motion was made by Director Robak, and seconded by Director Thompson and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
to approve staffs’ recommendation: 9. BOARD
a) DISCUSS OF 2020 BOARD MEETING CALENDAR
There was discussion because the COVID-19 situation has stabilized, the District could move from convening weekly special board meetings to one special board meeting a month. It was suggested that the meeting be held on the third
Wednesday of the month at 12:00 p.m. Additionally, the COVID-19 updates could
be included at the regular monthly board meetings scheduled on the first Wednesday of each month. There was further discussion that the District also has the option to convene an emergency or special board meeting whenever necessary.
A motion was made by Director Thompson, and seconded by President Croucher
and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None
Abstain: None
Absent: None to move from weekly to monthly special board meetings for COVID-19 updates to be held on the third Wednesday of each month at 12:00 p.m.
REPORTS 10. GENERAL MANAGER’S REPORT
General Manager Martinez presented information from his report that included an
update on the District’s response to the COVID-19 pandemic and preparation of plans for staff to return to work onsite, the boardroom audio/video upgrade, the requirement for face coverings when outside of the home and within 6 feet of a non-household member, the District changing its insurance provider to ACWA-JPIA, the
Otay Lakes Road main break claim, collections and bad debt related to the COVID-
19 pandemic, the status of construction projects, and a request by the City of San
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Diego for the District to be on standby to possibly provide water supply from the
Temporary Lower Otay Pumps Station. Staff responded to comments and
questions from the board. 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith reported that CWA discussed at their mid-year budget update ways
to minimize their rate increase. They discussed reducing administrative costs, utilizing reserves to smooth rate increases, and utilizing debt financing. He stated that CWA had allocated $38 million of reserves to smooth rates before the COVID-19 pandemic. CWA is currently above their “high” reserve target level and they plan
to reduce the reserve down to its minimum target level in order to do everything
they can to minimize the rate increase to their customers. He also shared with regard to MWD’s Member Agency Administered Program (MAAP), that after CWA filed their lawsuit, MWD reinstated two years of funding
totaling $1.6 million in the MAAP conservation program for CWA. Starting July 1,
2020 through June 30, 2022, CWA member agencies can submit conservation projects to be considered for funding by the MAAP program through CWA. Director Smith stated he hoped that staff will find/develop conservation projects that can be submitted to the program for funding. He indicated that ornamental plants, drinking
fountains and water station projects have been submitted for funding. He lastly
commented that the food drive CWA is coordinating with its member agencies seems to be effective. President Croucher additionally reported that CWA is continuing to work on different
storage options at Lake Mead. He stated that they are still moving forward with the
review of the Regional Conveyance Project and should have a report at the June 2020 board meeting. He shared with regard to Fallbrook PUD and Rainbow MWD’s request for detachment from CWA, that LAFCO had a meeting on Monday and will report on their findings in 30 days. He stated that MWD, through outreach with
agency general managers, has set up a committee that will discuss water issues
and areas where the agencies can work together. He also indicated that Governor Newsome issued an order today for Workers Compensation benefits for essential workers who must continue to work in the field during the social distancing orders.
Director Thompson suggested that the District discuss, through the task force
implemented between Otay and Sweetwater Authority, if Sweetwater might have interest in taking recycled water from Otay to be utilized within their service area. Additionally, if there is interest by Sweetwater, that we explore if it can be submitted to MWD’s MAAP program for funding. Director Smith indicated that he felt it was a
good idea and would pursue a discussion with Sweetwater once the task force
starts meeting. President Croucher indicated that the funds for the MAAP program is already being allocated and that there is only about $30,000 to $70,000 left to be funded in FY 2021. He suggested that staff submit their projects as soon as possible if they are wishing to pursue funding through the program.
12. DIRECTORS' REPORTS/REQUESTS
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Director Smith reported that he has submitted a written report to District Secretary
Cruz, which will be attached to the minutes for today’s meeting. Director Thompson also indicated that he had provided his written report to District Secretary Cruz and his report will be included with the minutes for today’s meeting
as well.
Director Gastelum reported that he attended an ACWA webinar and the Water Conservation Garden JPIA’s board meeting.
13. PRESIDENT’S REPORT
President Croucher’s report is attached. He also indicated that the District is continuing to work to respond to issues related to COVID-19, both long and short term. He shared that he and General Manager Martinez met with the Otay
Employee Association and received good feedback and they will continue to keep
the line of communications open with the Association to allow for timely responses to any impacts to employees or the District. 14. CLOSED SESSION
The board recessed to closed session at 4:59 p.m. to discuss the following matters: 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 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 5:43 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions 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.
17. ADJOURNMENT With no further business to come before the Board, President Croucher adjourned the meeting at 5:43 p.m.
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___________________________________ President
ATTEST:
District Secretary
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Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 4/1/20 To: 4/30/20
Item No. Date Meeting Attended Description
1.
4/1/20 OWD Board Meeting OWD Regular Board Meeting
2.
4/7/20 TARGET Solutions Training SDRMA Training: Risk Assessment Analysis
3.
4/8/20 OWD Special Board Meeting Update on impacts of COVID-19 to District operations
4.
4/9/20 TARGET Solutions Training SDRMA Training: Emergency Action Plans & Disaster Preparedness
5.
4/10/20 TARGET Solutions Training SDRMA Training: Introduction to OSHA
6.
4/15/20 OWD Special Board Meeting Update on impacts of COVID-19 to District operations
7.
4/17/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the April committee meeting
8.
4/20/20 CWA Matters Meeting Met with Dir Smith and GM Martinez to discuss CWA matters
9.
4/22/20 OWD Special Board Meeting Update on impacts of COVID-19 to District operations
10.
4/28/20 Meeting w/ GM and Gen Counsel Discussion and review of email
11.
4/29/20 OWD Special Board Meeting Budget Workshop I for Development of FY 2021 Budget: Discuss Key Figures and Assumptions