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HomeMy WebLinkAbout06-08-22 Board Minutes1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY June 8, 2022 1.The meeting was called to order by President Smith at 3:30 p.m. 2.ROLL CALL Directors Present:Keyes, Lopez, Robak and Smith Directors Absent:Croucher Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Andrew Jackson, Asst. Chief of Finance Kevin Koeppen, District Secretary Tita Ramos-Krogman and others per attached list. 3.PLEDGE OF ALLEGIANCE 4.APPROVAL OF AGENDA A motion was made by Director Robak, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to approve the agenda. 5.APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF APRIL 6, 2022 AND MAY 11, 2022 A motion was made by Director Lopez, seconded by Director Robak, and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to approve the minutes of the regular board meetings of April 6, 2022 and May 11, 2022. AGENDA ITEM 4 2 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. PUBLIC HEARING ITEMS 7. THE BOARD HELD A PUBLIC HEARING TO CONSIDER APPROVING THE FOLLOWING AGENDA ITEM AND INVITED THE PUBLIC TO PROVIDE COMMENTS ON THE ITEM a) APPROVE RESOLUTION NO. 4409, AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS BY OUTSIDE COUNSEL TO ACQUIRE THE NECESSARY INTERESTS IN REAL PROPERTY FOR THE COTTONWOOD SEWER PUMP STATION REPLACEMENT PROJECT Senior Civil Engineer Steve Beppler provided a staff report to the board and recommended the approval of Resolution No. 4409, authorizing the commencement of eminent domain proceedings by outside counsel to acquire the necessary interests in real property for the Cottonwood Sewer Pump Station Replacement Project. He stated that staff reached out to the property owner and indicated that the owner had no objection to the district’s plan. Mr. Beppler responded comments and additional questions from the board. President Tim Smith opened the Public Hearing at 3:40 p.m. and asked District Secretary Tita Ramos-Krogman if there were any comments or participation from the public. District Secretary Ramos-Krogman stated that there were no comments or participation from the public. With no comments from the public, President Smith closed the Public Hearing at 3:41 p.m.. A motion was made by Director Robak, seconded by Director Keyes and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to Adopt Resolution No. 4409, authorizing the commencement of eminent domain proceedings by outside counsel to acquire the necessary interests in real property for the Cottonwood Sewer Pump Station Replacement Project. 3 CONSENT ITEMS 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 Keyes, seconded by Director Lopez and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to approve the following consent calendar items: a) AWARD A CONSTRUCTION CONTRACT TO M-RAE ENGINEERING, INC. FOR THE RECYCLED WATER PIPELINE CATHODIC PROTECTION IMPROVEMENTS (R2146) PROJECT IN AN AMOUNT NOT-TO-EXCEED $552,060 b) AWARD TWO PROFESSIONAL SERVICES AGREEMENTS TO WOOD RODGERS, INC. AND WATER SYSTEMS CONSULTING, INC. FOR AS- NEEDED HYDRAULIC MODELING SERVICES IN AN AMOUNT NOT-TO- EXCEED $175,000 FOR FISCAL YEARS 2023 AND 2024 c) ADOPT RESOLUTION NO. 4411 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2022-2023 TO BE COLLECTED THROUGH PROPERTY TAX BILLS d) ADOPT RESOLUTION NO. 4412 TO ESTABLISH A REDUCED TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.001 FOR FISCAL YEAR 2022-2023 ACTION ITEMS 9. BOARD a) DISCUSSION OF BOARD OF DIRECTORS POLICY 8, DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS President Smith indicated that it has been four years since the board approved a per diem increase and proposed an increase to the current per diem from $152 to $158. Director Keyes stated his concerns of the timing of a per diem increase because of public perception in a time where there are economic issues. 4 In response to a question from Director Robak, General Counsel Dan Shinoff stated that there is a 5% limitation to increasing per diems. Director Lopez stated that the proposed per diem increase should also be based on all the work and time that board members put in monthly to find ways to improve water issues. b) AUTHORIZE STAFF TO CONDUCT REMOTE TELECONFERENCE MEETINGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEETINGS, PURSUANT TO RESOLUTION NO. 4401 WHICH THE BOARD ADOPTED AT A SPECIAL BOARD MEETING ON SEPTEMBER 27, 2021, AND IN ACCORDANCE WITH THE PROVISIONS OF GOVERNMENT CODE §54953(e) FOR THE NEXT 30 DAYS BECAUSE (1) A STATE OF EMERGENCY RELATED TO COVID-19 IS CURRENTLY IN EFFECT; (2) LOCAL OFFICIALS IN SAN DIEGO COUNTY HAVE IMPOSED OR RECOMMENDED MEASURES TO PROMOTE SOCIAL DISTANCING IN CONNECTION WITH COVID-19; AND (3) DUE TO THE COVID-19 EMERGENCY, MEETING IN PERSON WOULD PRESENT IMMINENT RISKS TO THE HEALTH AND SAFETY OF ATTENDEES A motion was made by President Smith, seconded by Director Robak, and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak and Smith Noes: None Abstain: None Absent: Director Croucher to authorize staff to conduct remote teleconference meetings of the board of directors for the next 30 days, including committee meetings, pursuant to Resolution No. 4401 which the Board adopted at a special board meeting on September 17, 2021, and in accordance with the provisions of Government Code §54953(e). c) DISCUSS THE 2022 BOARD MEETING CALENDAR President Smith indicated that staff would be available to provide a tour of the District’s Treatment Plant on June 22nd and inquired if board members would be interested in attending. All board members present indicated that they would be available to attend the tour. With four (4) board members confirming their attendance, President Smith directed District Secretary Tita Ramos-Krogman to set up a special board meeting on June 22, 2022, for the tour. There were no other changes to the board calendar. Director Robak stated that he would also like to visit the District’s Regulatory Site and pump stations. General Manager Martinez stated that staff will set up a different tour for Director Robak’s request. 5 INFORMATIONAL ITEMS 10. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATION PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a. THIRD QUARTER OF FISCAL YEAR 2022 CAPITAL IMPROVEMENT PROGRAM REPORT Engineering Manager Michael Long provided a PowerPoint presentation to the board. He responded to comments and questions from the board. FY 2023 BUDGET 11. ADOPT RESOLUTION NO. 4410 TO APPROVE THE FY 2022-2023 OPERATING AND CAPITAL BUDGET WITH A 4.1% RATE INCREASE FOR WATER AND A 4.5% RATE INCREASE FOR SEWER; APPROVE FUND TRANSFERS FOR POTABLE, RECYCLED, AND SEWER; ADOPT THE SALARY SHCEDULE; ADOPT ORDINANCE NO. 584 AMENDING APPENDIX A WITH THE APPROVED SEWER RATE CHANGES, EFFECTIVE JANUARY 1, 2023; AND DIRECT STAFF TO DRAFT AND MAIL SEWER RATE INCREASE NOTICES TO CUSTOMERS; AND DIRECT STAFF TO DRAFT AND MAIL PROPOSITION 218 HEARING NOTICES FOR POTABLE AND RECYCLED WATER TO CUSTOMERS Assistant Chief of Finance Kevin Koeppen indicated that staff will provide a PowerPoint presentation to the board. During the presentation, staff responded to comments and questions from the board. President Smith commended staff and explained their efforts to maintain a low increase in water and sewer rates for FY 2023. Director Keyes recommended that staff reach out to customers and provide information on the District’s efforts to minimize its budget. A motion was made by Director Keyes, and seconded by Director Lopez and carried with the following vote: Ayes: Directors Keyes, Lopez, Robak, and Smith Noes: None Abstain: None Absent: Director Croucher to approve the following: • Adoption of Resolution No. 4410 to approve the FY 2022-2023 Operating Budget of $118.6 million and Capital Budget of $12.6 million including: o A 4.1% rate increase for water o A 4.5% rate increase for sewer 6 • Approve annual fund transfers for potable, recycled, and sewer • Adopt the Salary Schedule pursuant to CA Code of Regulations 570.5 (CalPERS enforced) • Approve the continued advance funding of the District’s unfunded pension liability • Approve the sewer rate changes and adopt Ordinance No. 584 to amend the Code of Ordinances, including Appendix A, with the proposed 4.5% sewer rate increase on all billings that begin January 1, 2023 • Direct staff to draft and mail water and sewer rate increase notices • Direct staff to draft and mail Proposition 218 notices for recommended water rate and structure changes REPORTS 12. GENERAL MANAGER REPORT General Manager Martinez presented information from his report that included the District’s company picnic event on July 9, 2022, new hires, water arrearages, an emergency shutdown on the 36-inch transmission main that runs east and west on Jamacha Boulevard at Maya Street in Spring Valley, a mock shutdown that occurred on May 12, 2022, on Oleander Avenue and Olympic Parkway in Chula Vista. Mr. Martinez also provided the July 2020 through April 2021 vs. July 2021 through April 2022 conservation report. Mr. Martinez announced that Human Resources Manager Kelli Williamson will be retiring in December 2022. 13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Smith reported that CWA discussed matters that included the Carlsbad Desalination Report, Lake Hodges repairs, consideration of leasing out CWA properties, and the recruitment of a General Counsel. He also shared that Director Croucher discussed Otay Water District’s water delivery to Tijuana, Baja California. 14. DIRECTORS' REPORTS/REQUESTS Written reports from Directors Croucher, Keyes, Lopez and Robak were submitted to District Secretary Ramos-Krogman, which will be attached to the minutes for today’s meeting. 15. PRESIDENT’S REPORT President Smith directed board members to submit their GM Evaluation Form to General Counsel by June 10, 2022. A written report from President Smith was submitted to District Secretary Ramos- Krogman and will be attached to the minutes for today’s meeting. U 7 16.CLOSED SESSION The board recessed to closed session at 5:34 p.m. to discuss the following matters: a)DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC SERVICES [GOVERNMENT CODE §54957] b)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 c)CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERN- MENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015- 000-CU-MC-CTL Director Lopez left at 6:36 p.m. RETURN TO OPEN SESSION 17.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 6:40 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. UOTAY WATER DISTRICT FINANCING AUTHORITY 18.NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 19.ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 6:42 p.m. President ATTEST: District Secretary (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Tim Smith Period Covered: Employee Number: 1845 From: 05/01/22 To: 05/31/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 05/05/22 Ad Hoc GM Review Committee Meeting Met with Director Lopez and legal counsel to discuss GM Evaluation - - 2 05/11/22 OWD Board Meeting Monthly Board Meeting 26 - 3 05/12/22 Committee Agenda Briefing Discuss agenda items that are going to the May committee meetings - - 4 05/17/22 EO&WR Committee Meeting Meeting with GM, Legal and staff to discuss agenda items going to the June 8, 2022 board meeting 26 - 5 05/20/22 Directors’ Quarterly Meeting Met with GM Martinez to discuss district matters - - 6 05/24/22 CWA Matters Meeting Discuss CWA Matters with GM Martinez and Director Croucher - - 7 05/25/22 East County Caucus Discuss East County issues with agencies and CWA - 44 8 05/27/22 Agenda Review Review board agenda items with GM and Legal for the June 8, 2022 board meeting - - 9 10 Total Meeting Per Diem: $ 1,216 ($152 per diem) Total Mileage Claimed: 96 miles OTA Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Employee Number: 701 I ITEM I 2 3 4 5 6 7 8 9 DATE MEETING 5/09/22 Ad Hoc Legal Services Committee Meeting 5/10/22 Ad Hoc Legal Services Committee Meeting 5/11/22 Board Meeting 5/24/22 CW A Matter Meeting Total Meeting Per Diem: ($152 per diem) $608 Total Mileage Claimed: Period Covered: 5/1/22 PURPOSE / ISSUES DISCUSSED (Via Teleconference) Met with Director Lopez and GM Martinez to discuss legal service matters Met with Director Lopez and GM Martinez to discuss legal service matters May Board of Directors Meeting -Closed Session; Reported Ad Hoc Legal Services Committee meeting discussion Met with President Smith and GM Martinez to discuss CW A matters miles To: 5/31/22 MILEAGE MILEAGE MOMEtoOWD OTHER OWDtoMOME LOCATIONS -- -- -- -- GM Receipt: __ (Director's Signature) Date: __ c.....,/2�{{-t,/�'2�"-z�-z.....�-- FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Ryan Keyes Employee Number: 1896 ITEM 1 23 4 5 6 7 8 9 10 DATE MEETING 5-1-22 CSDA Course 5-3-22 South County Economic Development Council Meeting 5-8-22 CSDA Course 5-11-22 OWD Regular Board Meeting 5-13-22 Quartertly Meeting with General Manager 5-17-22 EO& WR Committee Meeting 5-30-22 CSDA Course 5-30-22 CSDA Course $912 Total Meeting Per Diem:($152 per meeting) Total Mileage Claimed:0 Period Covered: 5-1-22 PURPOSE / ISSUES DISCUSSED Board Member & District Liability Issues 2022 Monthly Board Meeting Is your District Recession Ready-2022 Monthly Board Meeting Current issues affecting OWD EO&WR Committee Monthly Meeting Maximize Your Membership Resources for Board Members (no charge) Prudently & Proactively Managing Pension Liabilities (no charge) Miles To: 5-31-22MILEAGE MILEAGE HOMEtoOWD OTHER OWDtoHOME LOCATIONS -- -- -- -- -- -- -- -- -- GM Receipt: _ (�atu24r Date: _ _;;C.""-1-fe_t_'f:+/2_-z_c ___ _I I FOR OFFICE TOT AL MILEA : $ _____ _ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Employee Number:7010 ITEM 1 2 3 4 5 6 7 8 9 10 DATE MEETING 04/01/22 CV Chamber of Commerce 04/06/22 Otay Water District 04/20/22 Otay Water District 04/25/22 Otay Water District 04/26/22 Water Conservation Garden 04/27/22 Otay Water District Total Meeting Per Diem: ($152 per diem) Total Mileage Claimed: $ 760 57 Period Covered: PURPOSE / ISSUES DISCUSSED 04/1/22 To: 04/30/22MILEAGE MILEAGE HOME10OWD OTHER OWD10HOME LOCATIONS First Friday meetings (no Charge) Regular Board meeting 19 Finance & Adm in Committee 19 Ad Hoc Legal Committee Quarterly meeting Special Board Meeting (Budget)19 miles (Director's Signature) Date: __ i_,/_1�3+-/_z_v_2--_2.. __ _ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ Pay To: Jose Lopez Employee Number: 7010 OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: 05/1/22 To: 05/31 /22ITEM DATE MEETING PURPOSE / ISSUES MILEAGE MILEAGE I 2 3 4 5 6 7 8 9 10 05/05/22 OWD 05/09/22 OWD 05/10/22 OWD 05/11/22 OWD 05/17/22 cowu 05/18/22 OWD 05/19/22 OWD Total Meeting Per Diem: ($152 per diem) Total Mileage Claimed: $ 1064 76 DISCUSSED HOMEtoOWD OTHER OWDtoHOME LOCATIONS Ad Hoc Gm Evaluation Committee Ad Hoc Legal Committee Ad Hoc Legal Committee Regular Board Meeting 19 Quarterly meeting 38 Finance & Adm in Committee 19 Gen Manager Quarterly meeting miles GM Receipt: (Director's Signature) Date: _1,_, /._1-'-�1- /_zo_Z_Z--__ _ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ EXHIBIT D OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To: Mark Robak Period Covered: Employee Number: 7014 From: 5-1-22 To: 5-31-22 ITEMIZED REIMBURSEMENT CLAIMED (Attach receipts for expenses greater than $10) Date Type of Reimbursement Amount 5-2-22 Airport parking for three days at Laurel San Airport Parking $46.87 5-2-22 Coffee at San Diego Airport $3.41 5-2-22 Uber from Sacramento Airport to hotel 31.01 5-2-22 Dinner at Public House Downtown $29.83 5-5-22 Dinner at Burgers & Brew at Sacramanto Airport $19. 5-15-22 Airport parking for two days at Laurel San Airport Parking $20.94 5-16-22 Coffee at San Diego Airport $3.41 5-16-22 Lyft from Sacramento Airport to hotel 22.64 5-16-22 Reading Glasses from CVS 20.11 5-16-22 Lyft from hotel to Sacramento Airport 22.99 TOTAL Reimbursement Claimed: $ 220.81 Director Signature: Date: 5-31-22 GM Approval: Date: 17