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HomeMy WebLinkAbout04-04-18 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT April 4, 2018 1. The meeting was called to order by President Smith at 3:30 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, 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 Finance, 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 Croucher, 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 agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF JANUARY 3, 2018 A motion was made by Director Robak, 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 board meetings of January 3, 2018. 6. UPDATE ON CUYAMACA COLLEGE’S CENTER FOR WATER STUDIES PARTNERSHIP 2 Mr. Don Jones, Project Coordinator for the Center for Water Studies at Cuyamaca College, provided an update on their Center (for Water Studies). The Center’s objective is to educate the next generation of water industry professionals. His presentation included information on the:  Water Industry Challenges  California Community College System  Cuyamaca Water and Wastewater Program  Center for Water Studies  Forging Stronger Industry Partnerships He stated that the program is a partnership with the water industry. Cuyamaca College is educating and preparing the next generation of workers for the water and wastewater industry and the industry is hiring their students. Cuyamaca College’s goal is to have the best facilities, curricula and faculty to prepare successful industry professionals. They have invested more than $2 million in the program and hope that the water industry will share in the investment with them. President Smith thanked Mr. Jones for his presentation. He stated the program is a tremendous effort to train the next water and wastewater professionals and the District very much appreciates their efforts. Director Robak noted that Mr. Jones is a longtime veteran of the water industry. He worked for the City of San Diego Public Works Department for 30 years and Vista Irrigation District for 12 years. He is the driving force behind the Cuyamaca College program. Director Robak inquired if job postings are being shared with the College. Mr. Jones indicated that they are receiving job postings periodically and they hope to develop a system where the College could have a presence on the District’s and other agencies’ websites HR page and vice versus for job postings. Mr. Jones indicated in response to another inquiry from Director Robak that three years ago the State Chancellor’s office, after direction from the legislature, authorized the California community colleges to develop 15 four year degree pilot programs that are not offered by either the California State Universities or University California campuses. He stated that these pilot programs are taking place now. Additionally, during this legislative session, the legislature is discussing the possibility of expanding with 15 more pilot programs. When this occurs, the staff at Cuyamaca College will be approaching the San Diego County water agencies to provide letters of support that will be presented with a proposal for a four year program for the Center for Water Studies. He indicated that 4,500 to 5,000 people in San Diego County work in the water and wastewater industry that supports a population of 3.3 million. This is a very small workforce that we depend on 24 hours a day, 7 days a week. He stated that this is a program that is needed in the County. 3 Director Croucher inquired about tours of their facilities and program and Mr. Jones indicated that they would be happy to provide tours to those interested. 7. 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. Joe Pantoja of Chula Vista indicated that he was a golf instructor at Salt Creek Golf Course and he is attending today’s meeting to request that the District’s Board consider reopening the Salt Creek Golf Course. He stated that he and other investors have organized themselves and wish an opportunity to take over the golf course. He asked that the Board review and consider what they have to offer. President Smith provided background on the Salt Creek Golf Course. He stated that the Otay WD has owned the golf course property for many years. The property was first used as “spray fields” for wastewater before the District constructed the Chapman water reclamation plant. The land has been leased by multiple golf course owners and the first lessee opened the golf course in 2000. The original developer, Mr. Michael Strode, invested approximately $20 million to develop the golf course. At that time, golf was gaining in popularity. After about 11 years, the golf course began to have financial difficulty and eventually went bankrupt. Director Thompson added that the District, in an effort to assist the golf course lessee keep the course open, provided a lease reduction two (2) years ago and, unfortunately, they were unable to keep the course open. Mr. Ruben Osorid of Chula Vista indicated that he did not feel it was a fair economic review of the golf course. He asked that the board consider that the Cities of Chula Vista and San Diego need open space for children and places to work. He asked that the Board reconsider the closing of the golf course. Mr. John Devore of Chula Vista and the golf coach for Olympic HS stated that the Salt Creek Golf Couse has been their home for golfing for the past twelve (12) years. They share time on the golf course with Bonita Vista HS, Hilltop HS and Otay Ranch HS. He stated it is a community resource with a unique European style course and vast practice facilities. He stated he is appealing to the Board to consider keeping the golf course open to invest in the kids and the community. Mr. Joe Heinz of Bonita stated that he is the coordinator of athletics for the Sweetwater Union HS district which encompasses twelve (12) high schools in the South Bay and he is also the President of the Metro Conference which encompasses the twelve (12) high schools and Mater Dei Catholic HS. He indicated he wished to echo Mr. Devore’s sentiments. Their athletic program has limited resources within its boundaries for practice and with Salt Creek closing, it will make a big impact on their program. They have 300 to 350 student athletes that participate in the sport of golf and the program is growing. He stated anything the Board can do to keep the Salt Creek Golf Course open will pay dividends to the students and the community. 4 Ms. Delsy Pantoja of Chula Vista indicated that she is asking that the Board reconsider options for the future of the Salt Creek Golf Course. She shared that her daughter played golf on her high school team and it not only provided her personal growth, but was a benefit to her on her college application. She asked the Board to please consider the impact the closing of the Salt Creek Golf Course will have on the future potential educational options of our community’s children. Mr. Edward Fletcher of Bonita indicated that there should at least be an investigation on how the prior lessee utilized the Salt Creek Golf Course to acquire the Warner Springs Golf Course. He indicated that Salt Creek Golf Course is the only “links” style course in the County of San Diego with the exception of Barona. He asked the Board to please not close the Salt Creek Golf Course and to work with the community to find other options for Salt Creek. Mr. Steve Deutsch of Chula Vista indicated he is a parent of one of the student golfers utilizing the Salt Creek Golf Course. He stated that his son is in an excellent training facility at Salt Creek. The course has the best training area and it would be a tremendous benefit for him to continue to train there. He asked the Board to consider keeping the Salt Creek Golf Course open and giving Mr. Pantoja an opportunity to take over the lease. Mr. Tyler Torano of Chula Vista indicated that he has been playing golf since he was eight (8) years old and while growing up he had an opportunity to play at the Salt Creek Golf Course. He stated that he is fortunate enough to call himself a professional golfer and he had the privilege of representing San Diego at the Farmers Insurance Open this year. He stated that the Salt Creek Golf Course means so much to the high school athletic program and community and he hoped that the Board would consider keeping the golf course open. Mr. Julio Cesar Pantoja of San Diego indicated he grew up in Chula Vista and he asked that the Board consider what the Salt Creek Golf Course provides to the entire County. He asked that the Board consider looking at the options of what this course could be. He and his brother have looked at how to revamp the course to bring it up to a world class golf course and market the golf course. Director Croucher indicated that the District is just the lease holder and it was a business decision by the lessee to close the Salt Creek Golf Course. There are a lot of golf courses in the District’s service area and the District will be looking at all options and will collaborate with other agencies and the City of Chula Vista. Mr. Bob Barrett of El Cajon indicated that he is the golf team’s coach at Eastlake HS. He stated that the Salt Creek Golf Course is an asset to the community and the course is highly used by the community members. He asked that the Board look at all its options and hope that they would reconsider closing the golf course. 5 The following persons wished to advise that they opposed the closing of the Salt Creek Golf Course, but did not wish to speak: Mr. Manny Ortiz, Mr. Jerome David, Mr. Fidel Arce and Mr. Edward Fletcher. The board thanked the speakers for attending today’s meeting and indicated that the golf course issue will be agendized for a future meeting and that they should watch the meeting postings on the District’s website so they may come back for the discussion. CONSENT CALENDAR 8. 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, 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 following consent calendar items: a) AWARD A CONSTRUCTION CONTRACT TO FRANK AND SON PAVING, INC. FOR THE OWD ADMINISTRATION AND OPERATIONS PARKING LOT IMPROVEMENTS, PH. II – PAVEMENT RESTORATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $165,046.00 b) APPROVE CHANGE ORDER NO. 1 TO THE EXISTING CONTRACT WITH SIMPSON SANDBLASTING AND SPECIAL COATINGS, INC. IN THE AMOUNT OF $229,152.00 FOR THE 980-2 RESERVOIR INTERIOR/EXTERIOR COATINGS AND UPGRADES PROJECT; AND INCREASE THE CIP BUDGET FOR THE P2546 (980-2 RESERVOIR) BY $240,000.00 (INCREASE FROM $1,450,000.00 TO $1,690,000.00) c) AWARD TWO (2) PROFESSIONAL AS-NEEDED ASSET MANAGEMENT SERVICES CONTRACTS TO HAZEN & SAWYER, INC. AND HDR, INC., EACH IN AN AMOUNT NOT-TO-EXCEED $175,000; THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $175,000 DURING FISCAL YEARS 2018, 2019, AND 2020 (ENDING JUNE 30, 2020) d) ADOPT RESOLUTION NO. 4344 ALLOWING FOR THE REIMBURSEMENT OF CERTAIN EXPENDITURES FROM THE PROCEEDS OF THE SEWER DEBT OBLIGATIONS OF THE DISTRICT, WHICH IS ANTICIPATED TO BE ISSUED DURING 2018 6 ACTION ITEMS 9. BOARD a) DISCUSSION OF 2018 BOARD MEETING CALENDAR Director Croucher indicated that on May 2, 2018 he will be in Redding, CA and will be unable to attend the District’s board meeting on that day. Director Thompson indicated that he would not be able to attend the July board meeting. There were no changes to the board meeting calendar. INFORMATIONAL ITEM 10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) UPDATE ON THE CHANGES TO THE AUTOMATED METER READING CHANGE OUT CAPITAL IMPROVEMENT PROGRAM APPROVED BY THE BOARD IN 2017 Customer Service Manager Andrea Carey provided an update on the District’s Automated Meter Reading change out Capital Improvement Program which was approved by the board in 2017. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Carey’s report. In response to an inquiry from Director Gastelum, Ms. Carey indicated that the Allegro Meters are digital register meters. They will “sleep” until a receiver is in the area to “wake them up” to read their water use data. The 3G meters transmit usage data every 11 seconds even if there is no transponder in the area to pick- up the information. b) PRESENTATION ON THE ANALYSIS OF THE COST BENEFIT OF KEEPING THE RALPH W. CHAPMAN WATER RECYCLING FACILITY TREATMENT PLANT OPEN, COMPARED TO CLOSING THE PLANT AND SENDING ALL SEWER FLOWS TO SAN DIEGO METROPOLITAN WASTEWATER Finance Manager Rita Bell presented the analysis of the cost benefit of keeping the Ralph W. Chapman Water Recycling Facility (RWCWRF) treatment plant open, compared to closing the plant and sending all sewer flows to San Diego Metropolitan Wastewater (Metro). Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Bell’s report. Director Thompson indicated that the District’s Finance and Administration Committee discussed that the District has conferred with the County of San 7 Diego on possible ways to make sewer services more cost effective and, thus far, there has not been a fruitful outcome to our discussions. The District will continue to discuss this issue with the County periodically. c) UPDATE ON SENATE BILL 229, ACCESSORY DWELLING UNITS NEW LEGISLATION, EFFECTIVE JANUARY 1, 2018 Engineering Manager Dan Martin provided an update to the board on new legislation under SB 229, Accessory Dwelling Units (ADU), which became effective January 1, 2018. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Martin’s report. Director Thompson noted that SB 229 is a small piece of legislators’ response to the shortage of rental housing units which is impacting our economy and making us less competitive nationally. The legislature is trying to restrict agency fees related to ADU’s and the District needs to assure that its ratepayers are not affected to the extent it has the ability to. Director Thompson asked staff to review the District’s ability to possibly provide a payment plan for capacity fees the District charges for the addition of an ADU on an existing customer’s property. Staff indicated that they would review the District’s ability to do so. Director Croucher indicated that when a homeowner remodels a home that was built before fire sprinklers were required, the remodel triggers the requirement that the homeowner update and install fire sprinklers. SB 229 allows ADU’s to be built without fire sprinklers and cautioned the District in assisting homeowners with a payment plan at the cost of public safety. He indicated if the homeowner can afford to finance their ADU that is fine, but does the District really want to be the financier of customers ADUs. Mr. Bob Bakayou of El Cajon requested to speak on this item. He indicated that he had also spoken on this issue at the District’s special board meeting held on December 11, 2017. He stated that he is currently building an ADU on his property which is in the planning stages. He indicated that he is replacing 2500 square feet of landscaping on his property with an ADU and he did not feel that he will be placing additional burden on the system, but rather would likely be decreasing the amount of water he is using. He stated that the intent of the laws is to make it easier to build ADU’s and he feels the District’s fees are excessive and is not proportionate to the change in water use his ADU would put on the system. In response to an inquiry from Director Croucher, Engineering Manager Dan Martin indicated that the property’s existing home is 2,871 square feet, the ADU will be 1,198 square feet and the fixture count on the property will increase from 36 to 53. The ADU being proposed would not only require a meter size upgrade, but the property owner will also be adding sewer services to his property. Mr. Martin stated that this particular ADU is not ministerially approved and is treated similar to a developer requesting a meter for a 53 fixture unit which would require a 1” meter. He indicated that Senate Bill 229 does not impact the District’s 8 business practice and that Mr. Bakayou’s existing meter was not configured to include landscape use. In response to an inquiry from Director Gastelum, it was indicated that the District can check the difference in water use before and after the ADU is built. d) PIPELINE NEWSLETTER OUTLOOK (OTERO) The board noted receipt of the report and would forego a presentation as the item was reviewed in detail in committee. e) SOCIAL MEDIA AND WEB ANALYTICS UPDATE (OTERO) The board noted receipt of the report and would forego a presentation as the item was reviewed in detail in committee. REPORTS 11. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award received by the Otay Water District from the Government Finance Officers Association, the Campo Road Sewer Replacement Project, meter sales, water conservation and sales. The board had comments and questions concerning a few items in the General Manager’s report and staff responded to the questions and comments. 12. CWA REPORT Director Croucher reported that CWA has moved their regular board meeting in April to Thursday, April 12, 2018 and a special board meeting has been scheduled on Thursday, April 26, 2018. He also indicated that CWA has met with Mr. Randy Record of MWD as the agencies continue to work on enhancing the relationship between the two agencies and they plan to meet again on April 23. President Smith added that CWA’s CalPERS unfunded liability is 68% funded and Otay WD’s is 59% funded. He stated that the agencies are collaborating on possible solutions to increase the funding of the liability up to 75% over a period of 15 to 20 years. He noted that the “Water Fix” has been in the news and MWD has indicated that they plan on supporting the one tunnel option. The recommendation will be presented to MWD’s board this month and if approved, the cost for the tunnel will be funded by MWD’s member agencies. He lastly shared that CWA is developing an Asset Management Plan similar to Otay WD’s. 13. DIRECTORS' REPORTS/REQUESTS 9 Director Thompson reported that he will be participating in the San Diego Regional Chamber’s 2018 Binational Delegation trip to Mexico City. He stated that he will be paying particular attention to infrastructure discussions and monitoring the dialogue regarding desalination versus water reuse. Director Croucher inquired if there was any progress on the video for customers regarding how water rates are developed/billed. Communications Officer Tenille Otero indicated that it is on the District’s list of videos to develop and staff is currently working on a video concerning the impact of grease on the sewer system. General Manager Watton indicated in response to another inquiry from Director Croucher that the water fill stations are on order and he is not certain if staff has ordered water bottles for Otay employees for the water fill stations as of yet. The new water fill stations will replace the current water fountains throughout the administration and operations buildings. Director Gastelum reported that he attended the Annual WaterNow Alliance Summit held at the University of Utah. He indicated that he heard an interesting presentation on how Moulton Niguel Water District has been working with Netflix, YouTube, etc. to utilize their predictive modeling tools and analytics to improve the forecasting of water use and manage peak usage to avoid the cost of building unneeded infrastructure. He stated that the presentation was very interesting and is an example of how the private and public sectors can work together to improve services. Director Robak indicated that he felt that social media is a great tool in disseminating information to the public. 14. PRESIDENT’S REPORT President Smith indicated that he had an opportunity to attend the WateReuse Annual Conference. He stated that the City of San Diego and Padre Dam MWD are looking at reservoir augmentation and the regulations for reservoir augmentation have been revised. The City will be the first to utilize the new regulations in California. He stated the City also reviewed in 2016 whether direct potable reuse was feasible and they determined that it is and the regulatory agencies must determine regulations for direct potable reuse in order to make it feasible by December 31, 2023. He indicated that, thus, direct potable reuse may become a reality in San Diego in approximately five (5) years. He stated that it was noted at the conference, that direct potable reuse is already being done by northern California agencies. Following the President’s Report, General Manager Watton presented a video on the Rosarito Desalination Project Groundbreaking Ceremony. 15. CLOSED SESSION The board recessed to closed session at 6:05 p.m. to discuss the following matter: 10 a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS [GOVERNMENT CODE §54956.8] PROPERTY: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 AGENCY NEGOTIATOR: MARK WATTON, GENERAL MANAGER NEGOTIATING PARTIES: BILL McWETHY, PACIFIC HOSPITALITY GROUP UNDER NEGOTIATIONS: INSTRUCT NEGOTIATOR CONCERNING THE LEASE AND DISPOSITION OF THE PROPERTY The board reconvened from closed session at 6:59 p.m. General Counsel Daniel Shinoff indicated that the board met in closed session and took no reportable actions. 16. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 6:59 p.m. ___________________________________ President ATTEST: District Secretary 11 President’s Report Tim Smith April 4,2018 Board Meeting       # Date Meeting Purpose  1 1‐Mar Metro Commission Monthly Commission Meeting    2 2‐Mar Board Agenda Briefing  Met with General Manager Watton and  Attorney Blumenfeld to review items that  will be presented at the March Board  Meeting    3 6‐Mar OWD Special Board Meeting Tour of the 870 Pump Station    4 7‐Mar OWD Regular Board Meeting Monthly board meeting    5 9‐Mar Otay Mesa Chamber of  Commerce Presented on SB 623    6 14‐Mar Chula Vista Chamber of  Commerce Presented on SB 623    7 16‐Mar Committee Agenda Briefing  Met with General Manager Watton to  review items that will be presented at the  March committee meetings         8 19‐Mar OWD PRL&L Committee Reviewed items that will be presented at  the April board meeting.         9 20‐Mar OWD EO&WR Committee Reviewed items that will be presented at  the April board meeting.         10 21‐Mar East County Caucus Discussed Otay's key issues with East  County water agencies and CWA         11 29‐Mar Board Agenda Briefing  Met with General Manager Watton and  General Counsel Shinoff to review items  that will be presented at the April Board  Meeting  12