Loading...
HomeMy WebLinkAbout03-06-19 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 6, 2019 1. The meeting was called to order by President Thompson at 3:34 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum (arrived at 3:35 p.m.), Robak, Smith and Thompson Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Engineering, Dan Martin, Asst. Chief of Finance Kevin Koeppen, Asst. Chief of Operations Jose Martinez, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Smith, and seconded by Director Croucher 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. MOMENT OF SILENCE President Thompson asked that a moment of silence be observed in honor of the late Honorable John D. Dingell of the state of Michigan, who was the longest serving member of the United States Congress. The former congressman died on February 7, 2019. President Thompson indicated that late Congressman Dingell had dictated this statement to his wife before he died, “In democratic government, elected officials do not have power. They hold power in trust for the people who elected them. If they misuse or abuse that public trust, it is quite properly rebuked (the quicker the better).” He indicated he wished to share the quote as it is very relevant to the Otay Water District as a government agency serving the public. 6. WATER CONSERVATION GARDEN UPDATE 2 Ms. Jennifer Pillsbury, Executive Director of the Water Conservation Garden (Garden), indicated that her background is non-profit management and she most recently worked for the YMCA before coming to the Garden. She stated she is excited to be a part of an important organization and is looking forward to getting the community involved and more connected to the Garden as many are not aware that the Garden exists. She presented photos of exhibits from the Garden, including the formal cacti garden, the construction of the new education center, the irrigation exhibit and various demonstration areas of the Garden. She noted that the Garden is free and open to the community and that the Spring Garden Festival is scheduled on April 26, 2019. She stated that the Garden provides for educating the public on conservation and the environment, and it is a gathering and wellness space for all in the community. She stated she is looking forward to building partnerships and asked the Board if they have connections that would provide for a mutually beneficial relationship, that they please reach out to her to share the information. Ms. Pillsbury stated she has provided members of the board a copy of the Garden’s event calendar and invited the board to all the events. She thanked the board for their partnership and stated that it is very valuable and important to the community. Ms. Pillsbury responded to questions from the board. 7. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF OCTOBER 3, 2018 A motion was made by Director 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 minutes of the regular meeting of October 3, 2018. 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. CONSENT CALENDAR 9. 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: President Thompson indicated that a request has been received to speak on item 7c, IMPOSE A $5,000 FINE TO WHITING TURNER CONSTRUCTION COMPANY FOR AN ILLEGAL CONNECTION TO A FIRE HYDRANT AND WATER THEFT. The item will be pulled from the consent calendar. Director Smith also pulled 7d, 3 APPROVE AN AGREEMENT WITH BROWNSTEIN HYATT FARBER SCHRECK COMMENCING MARCH 6, 2019 THROUGH DECEMBER 31, 2021 FOR AN AMOUNT NOT-TO-EXCEED $200,000, for discussion. A motion was made by Director Smith, and seconded by Director Robak 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 items: a) ADOPT ORDINANCE NO. 570 TO AMEND SECTION 0 (DEFINITIONS AND MISCELLANEOUS PROVISIONS) AND SECTION 51 (DISTRICT SEWER SYSTEM) OF THE DISTRICT’S CODE OF ORDINANCES; AND, ADOPT RESOLUTION NO. 4357 TO AMEND BOARD OF DIRECTORS POLICY NO. 1 (PRIVATE SEWER LATERALS) OF THE DISTRICT’S CODE OF ORDINANCES b) APPROVE STAFF’S RECOMMENDATION TO CONTINUE THE DISTRICT’S BANKING SERVICES WITH UNION BANK. STAFF WILL PERFORM THE NEXT BANKING SERVICES REVIEW IN SIX (6) YEARS AND A PRICING REVIEW IN THREE (3) YEARS e) APPROVE A FIFTH AMENDMENT WITH CAROLLO ENGINEERS, INC. FOR THE DESIGN AND CONSTRUCTION SUPPORT OF THE 870-2 PUMP STATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $88,352 President Thompson presented item 7c for discussion: c) IMPOSE A $5,000 FINE TO WHITING TURNER CONSTRUCTION COMPANY FOR AN ILLEGAL CONNECTION TO A FIRE HYDRANT AND WATER THEFT Customer Service Manager Andrea Carey requested that the board uphold staff’s recommendation to impose a $5,000 fine to Whiting Turner Construction Company for an illegal connection to a fire hydrant and for water theft. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Carey’s presentation. Ms. Charissa Farley of Farley Interlocking Paving indicated that her company and staff would never willfully or intentionally connect illegally to a fire hydrant. She stated that there is no benefit to her company to steal water. She stated that she started her company 25 years ago as a custom home builder and paving contractor. Her company now installs permeable interlocking paving stones that are manufactured locally and installed by hand. Her company has no investors and it 4 finances its own operations and provides local jobs for young men who are looking for careers. The company provides 401K retirement investing, paid vacations, etc. She stated that her understanding is that the first illegal connection occurred with the initial crew her company had working on the Whiting Turner Construction project. That crew was admonished for attaching illegally to a hydrant and, because they were embarrassed, they did not share the mistake with the company. The job was delayed for reasons unknown to her company, so the initial crew was assigned to work another job. A second crew came in later to work on the Whiting Turner Construction job and they made the same mistake. She stated to assure such mistakes do not occur again in future, her company has instituted weekly Friday meetings where they share and report incidences and information. She stated that Whiting Turner Construction has passed along the $5,000 penalty to her company and they will not pay her company until the penalty is paid. She indicated a $5,000 fine is something her company cannot weather and indicated that any assistance the board could provide would be greatly appreciated. In response to an inquiry from the board, Ms. Carey indicated that when the illegal connections were identified on October 15 and 18, 2018, Whiting Turner Construction’s foreman was notified by the District’s inspection team during both incidences. It was discussed that the board has full discretion and has exercised that discretion in various ways in the past. It was observed that it is important to recognize when persons come in and admit that they are wrong and are willing to address the problem. It was indicated that there is value in encouraging this behavior and that there should be some consideration to reduce the fine. A motion was made by Director Smith, seconded by Director Gastelum and carried with the following vote: Ayes: Directors Croucher, Gastelum, and Smith Noes: Director Robak and Thompson Abstain: None Absent: None to assess a reduced fine of $2,500. President Thompson requested that staff forward a letter of complaint, if appropriate, to the State Contractors Licensing Board, related to Whiting Turner Construction and Farley Interlocking Paving having illegally connected to a hydrant without a meter three times. It was also suggested that the District write Whiting Turner Construction to put them on notice that any future violations would trigger further penalties and action by the District. The board also discussed actions the District can take to deter such violations, such as, proposing rewards for persons who report violations, etc. d) APPROVE AN AGREEMENT WITH BROWNSTEIN HYATT FARBER SCHRECK COMMENCING MARCH 6, 2019 THROUGH DECEMBER 31, 2021 FOR AN AMOUNT NOT-TO-EXCEED $200,000 5 Director Smith indicated that he wished to understand the level of effort associated with the Brownstein Hyatt Farber Schreck (BHFS) contract and compare it with expenditures on other legal matters. It was indicated that the District has a retainer for general legal matters and litigation matters are an additional expense over the retainer. The BHFS contract is not for legal services, but for legislative lobbying services. It was discussed that the board wished to be more involved in legislative issues and that it was important to continue to fund this effort. A motion was made by Director Smith, seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve staff’s recommendation. 10. 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 Mr. Baron Willis requested to address the board after the close of the public participation portion of the meeting. The board reopened the public participation portion of the meeting and Mr. Willis thanked the board for receiving his comments. He indicated that he is a member of the Alpine Board of Directors and that he is a candidate for Commissioner on the Local Agency Formation Commission. He stated that he is in attendance of today’s meeting to introduce himself and request the Otay Water District Board of Directors’ support of his candidacy. He provided members of Otay’s board a copy of his resume and stated his philosophy is to err on the side of local control. He thanked the board for their time. ACTION ITEMS 11. BOARD a) BOARD OF DIRECTOR’S POLICY NO. 8, DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS: MEETING ATTENDANCE AND VERBIAGE UPDATES President Thompson indicated that changes are being proposed to Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, to allow the board president to approve per diems (requires pre-approval by the board president) related to attendance of Chamber of Commerce meetings. President Thompson suggested that the verbiage, “or whose geographic area is within District boundaries,” be added to the bullet under item 5 in Exhibit A. It was also suggested by Director Croucher that an additional bullet be added under item 5 indicating, “Other meetings that the board president deems beneficial to the 6 District,” to provide for flexibility. Other changes were presented as proposed in the strike-thru copy of Policy 8 attached to the board memo. The board noted that if there is an issue being addressed by the District, that a strategy be developed by the Public Relations, Legislative and Legal Committee as to when and who would address the issue formally in the public. A motion was made by Director Thompson, and seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None to approve changes to Board of Directors Policy 8 as proposed in the discussion above. b) DISCUSSION OF 2019 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. INFORMATIONAL ITEMS 12. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS. a) SECOND QUARTER OF FISCAL YEAR 2019 CAPITAL IMPROVEMENT PROGRAM REPORT Assistant Chief of Engineering Dan Martin provided an update on the second quarter of the District’s Capital Improvement Program (CIP). Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Martin’s report. Mr. Martin responded to questions and comments from the board. b) FISCAL YEAR 2019 MID-YEAR STRATEGIC PLAN UPDATE (SEGURA) Chief of Administration Adolfo Segura provided a mid-year update for the fiscal year 2019 strategic plan. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Segura’s report. Director Croucher stepped off the dias at 5:02 p.m. and returned at 5:06 p.m. In response to an inquiry from the board concerning the measure for Distribution Water Loss, staff indicated that because the District has thousands of fire hydrants, the cost to protect them from water theft would not be cost effective. It was 7 indicated that staff had written a report addressing this issue and copies of the report will be distributed to members of the board. Director Croucher stepped off the dias at 5:23 p.m. and returned at 5:25 p.m. Mr. Segura responded to additional questions and comments from the board. REPORTS 13. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on fleet shop and warehouse LED light replacements, the San Diego Regional Construction Procurement Committee, America’s Water Infrastructure Act of 2018, highlights from the WaterISAC webinar, the City of San Diego’s Pure Water Project, shared services program with sister agencies, conservation, and water sales and purchases. The board suggested that a press release be drafted to explain why the Campo Road Sewer Replacement Project has taken so long to complete and that the District should possibly host a ribbon cutting ceremony at the completion of the project. 14. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher provided an update on CWA matters which included that General Manager Maureen Stapleton retired from CWA effective February 28 and Ms. Sandy Kerl has been appointed acting general manager, Mr. Dan Denham has been promoted to assistant general manager and Mr. Dennis Cushman (assistant general manager) will be retiring in April 2019. He also shared information concerning settlement discussions with MWD and, from April 1 to 2, that CWA’s executive board will travel to Sacramento with delegates from Los Angeles (who are representatives on the MWD’s board) to meet with legislators. He stated this will be the first time that CWA’s executive board will travel with the Los Angeles’ delegates to Sacramento. Director Smith further reported that CWA is reviewing its fiscal year 2020 rates and an increase of approximately 3% is being discussed; that the State Governor announced that he is proposing a single tunnel for the California Water Fix project; and that the regional water recycling program project is proposing allowing future direct potable water reuse through Metro Commission’s treatment plant. Director Croucher left the board meeting at 5:46 p.m. as he was scheduled to attend another meeting at 6:00 p.m. 15. DIRECTORS' REPORTS/REQUESTS Director Smith indicated that he attended his regular District meetings that included the Engineering Operations and Water Resources Committee, the East County 8 Caucus meeting, a regional meeting to discuss MWD issues, and the Chula Vista Chamber Installation dinner. He stated that he had considered during his presidency, which he did not implement, to request that the members of the board report on all the meetings they attended. He encouraged president Thompson to implement the requirement as there was discussion regarding the need to coordinate what board members are attending. Director Gastelum reported that he attended the Association of California Water Agencies’ (ACWA) Annual Washington, D.C. conference in February 2019 where attendees met with several California Congressmen and discussed the California Water Fix project, water storage infrastructure and various issues. Director Robak reported that two California Senators have introduced a bill which intends to save all treated sewer water flowing into the Ocean. He also shared that he attended CWA’s board meeting where they announced that General Manager Maureen Stapleton would be retiring. He stated that Ms. Stapleton has been CWA’s general manager since the 1990’s (23 years). 16. PRESIDENT’S REPORT President Thompson’s report is attached. He noted that he met with the presidents of Helix WD and Sweetwater Authority at the request of Sweetwater Authority board president Steve Castaneda. Their discussion included cooperation between agencies and integrated water resources planning. OTAY WATER DISTRICT FINANCING AUTHORITY 17. NO MATTERS TO DISCUSS President Thompson indicated that 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 Thompson adjourned the meeting at 6:04 p.m. ___________________________________ President ATTEST: District Secretary 9 President’s Report Mitch Thompson March 6, 2019 Board Meeting # Date Meeting Purpose 1 6-Feb OWD Regular Board Meeting Monthly Board Meeting 2 11-Feb Quarterly meeting with General Manager Watton Met w/ General Manager Watton to receive an update on projects or items impacting Division 2 3 15-Feb Committee Agenda Briefing Met w/ General Manager Watton to review items that will be presented at the February committee meetings 4 19-Feb F&A Committee Reviewed items that will be presented at the March board meeting 5 20-Feb Calif Special District Association Quarterly Meeting Attended the CSDA quarterly meeting. 6 22-Feb Otay Mesa Chamber of Commerce Member Meeting Represented Otay WD at the meeting 7 25-Feb Helix Board President and Sweetwater Board President Met to discuss additional ways the three agencies could work cooperatively 8 27-Feb Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the March Board Meeting