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Home My WebLink About10-05-22 Board Minutes MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY October 5, 2022 1. The meeting was called to order by President Smith at 3:30 p.m. 2. ROLL CALL Directors Present: Keyes, Croucher, Lopez, Robak, and Smith Directors Absent: None Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief Financial Officer Joe Beachem (virtual), Ad- ministrative Chief Adolfo Segura, Chief of Engineering Mi-chael Long (virtual), Chief of Operations Andrew Jackson, Assistant Chief of Finance Kevin Koeppen, and Executive Assistants Felicia Montano and Sonia Gomez. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Director Croucher, Keyes, Lopez, Robak, and Smith Noes: None Abstain: None Absent: None to approve the agenda. 5. SAN DIEGO COUNTY WATER AUTHORITY FEDERAL LEGISLATIVE UPDATE (MEGGAN VALENCIA) AND BROWNSTEIN HYATT FARBER SCHRECK STATE LEGISLATIVE UPDATE (RUY LAREDO) Communications Officer Tenille Otero introduced Ms. Meggan Valencia from the San Diego County Water Authority who provided federal legislative updates. Mr. Ruy Laredo from Bownstein Hyatt Farber Schreck also presented state legisla-tive updates. Both presenters responded to questions and comments from the Board. 6. WATER CONSERVATION GARDEN UPDATE (JENNIFER PILLSBURY) Communications Officer, Tenille Otero, introduced Ms. Jennifer Pillsbury who pro-vided Water Conservation Garden updates. Ms. Pillsbury responded to questions and comments from the Board. 7. WATTON SCHOLARSHIP UPDATE (TENILLE OTERO) Communications Officer Tenille Otero provided an update on the Watton Scholar- ship program, including comments and appreciation from the recipients. The Board requested a copy of the presentation and stated that they would like to contribute to the scholarship program. 8. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JU-RISDICTION BUT NOT AN ITEM ON TODAY’S AGENDA No one wished to be heard. PUBLIC HEARING 9. PUBLIC HEARING ON RATES AND CHARGES - PROPOSITION 218 HEARING THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE PRO-POSED RATES AND CHARGES TO BE IMPLEMENTED IN THE FISCAL YEAR 2022-2023 OPERATING AND CAPITAL BUDGET, WHICH WILL BE EFFECTIVE ON JANUARY 1, 2023; AND TO AUTHORIZE, FOR A PERIOD OF FIVE YEARS, THE PASS-THROUGH OF COST INCREASES OR DECREASES FROM WATER WHOLESALERS AND ENERGY SUPPLIERS, AND DISTRICT RATE INCREASES NOT-TO-EXCEED THE ANNUAL INCREASE IN THE CONSUMER PRICE INDEX-U FOR THE SAN DIEGO-CARLSBAD AREA ANNUALLY FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE PROPOSED RATES AND CHARGES a) APPROVE THE PROPOSED RATES AND CHARGES TO BE IMPLE-MENTED IN THE FISCAL YEAR 2022-2023 OPERATING AND CAPITAL BUDGET; ADOPT ORDINANCE NO. 586 AMENDING THE TABLE OF CON-TENTS; SECTION 9, ANNEXATION AND DETACHMENTS; SECTION 25, CONDITIONS FOR WATER SERVICE; SECTION 31, TEMPORARY WATER SERVICE; SECTION 38, SERVICE FOR FIRE PROTECTION SYSTEMS; AND APPENDIX A, SCHEDULE OF DISTRICT’S CODE OF ORDINANCES; AND b) AUTHORIZE FOR A PERIOD OF FIVE-YEARS, THE PASS-THROUGH OF COST INCREASES OR DECREASES FROM WATER WHOLESALERS AND ENERGY SUPPLIERS; AND AUTHORIZE, FOR A PERIOD OF FIVE-YEARS, DISTRICT RATE INCREASES NOT-TO-EXCEED THE ANNUAL INCREASE IN THE CONSUMER PRICE INDEX-U FOR THE SAN DIEGO-CARLSBAD AREA ANNUALLY, FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS (KOEPPEN) Assistant Chief Financial Officer, Kevin Koeppen, provided a staff report to the Board and recommended the approval of the proposed rates and charges to be implemented based on Proposition 218, to be implemented January 1, 2023. He also requested to authorize the proposed rates and charges for a pe-riod of five years. Mr. Koeppen responded to questions and comments from the Board. President Tim Smith opened the Public Hearing at 4:59 p.m. and asked Execu- tive Assistant, Felicia Montano, if there were any comments or participation from the public. Ms. Montano indicated that there were none. Director Gary Croucher indicated his opposition to the five-year pass through. He asked if the District can do a one-year approval with a four year considera- tion. Mr. Koeppen explained that the District would need to conduct studies and mailings for each year thus more costs would be incurred. President Tim Smith indicated that he supports the five-year pass through and appreciated Director Croucher’s input and suggestions. With no comments from the public, President Tim Smith closed the public hearing at 5:04 p.m. A motion was made by Director Keyes, seconded by President Smith and car- ried with the following vote: Ayes: Directors Keyes, Lopez, Robak, and Smith Noes: Director Croucher Abstain: None Absent: None to approve staffs’ recommendation. CONSENT CALENDAR 10. ITEMS TO BE ACTED UPON WITHOUT DISCUSSION, UNLESS A REQUEST IS MADE BY A MEMBER OF THE BOARD OR THE PUBLIC TO DISCUSS A PAR-TICULAR ITEM: A motion was made by Director Keyes, seconded by President Smith and car-ried with the following vote: Ayes: Director Keyes, Lopez, Croucher, Robak, and Smith Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) ADOPT RESOLUTION NO. 4417 TO AUTHORIZE A FINANCIAL ASSIS-TANCE APPLICATION FOR A GRANT AGREEMENT FROM THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) FOR THE PLANNING OF THE JOINT SWEETWATER AUTHORITY (SWA) – OTAY WATER DIS-TRICT (OWD) RECYCLED WATER INTERTIE PROJECT b) ADOPT RESOLUTION NO. 4418, THE ANNEXATION OF THE PROPERTY OF FREDRICK MEJOS RESIDENCE WATER ANNEXATION, 0 PROCTOR VALLEY ROAD, CHULA VISTA, CA 91914, APN: 595-020-47-00 TO THE OTAY WATER DISTRICT AND TO WATER IMPROVEMENT DISTRICT (ID) NO. 22/27 c) ADOPT RESOLUTION NO. 4419 APPROVING THE ANNEXATION OF THE PROPERTY OWNED BY ROBINSON FAMILY TRUST (APN 519-281-02-00; 3110 SUNFLOWER GLEN COURT, JAMUL, CA 91935) TO OTAY WATER DISTRICT SEWER IMPROVEMENT DISTRICT (ID) NO. 18 d) DECLARE 0.787 ACRES OF REAL ESTATE PROPERTY LOCATED ALONG THE FUTURE ALIGNMENT OF ALTA ROAD ON OTAY MESA AS SURPLUS AND AUTHORIZE THE GENERAL MANAGER TO ACCEPT AN OFFER FROM CH REALTY X-ELC I OTAY MESA BUSINESS PARK, L.P, A DELA- WARE LIMITED PARTNERSHIP (CH REALTY) TO PURCHASE 0.43 ACRES OF THE LAND FOR $168,000.00 AND ACCEPT A GRANT OF EASEMENT THAT SECURES THE OTAY WATER DISTRICT’S PRIOR PROPERTY RIGHTS e) AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS OF UP TO THE BUDGETED AMOUNT, AND ANY INFLATION ADJUST-MENTS IN ADDITION TO THE BUDGETED AMOUNTS, WHEN PRICING AND VEHICLES ARE AVAILABLE, FOR THE PURCHASE OF SEVEN FLEET VEHICLES AND ONE EXCAVATOR IN AN OVERALL COST OF $882,500.00 f) AUTHORIZE THE GENERAL MANAGER TO CONTINUE WITH SUN LIFE, THE DISTRICT’S CURRENT PROVIDER, AND ENTER A TWO-YEAR AGREEMENT TO PROVIDE LIFE, ACCIDENTAL DEATH AND DISMEMBER- MENT (AD&D), AND SHORT/LONG-TERM DISABILITY INSURANCE FROM JANUARY 1, 2023, THROUGH DECEMBER 31, 2024, IN AN AMOUNT AP-PROXIMATE TO $85,000 – BASED ON CURRENT CENSUS INFORMATION AND SUBJECT TO CHANGE ACTION ITEMS 11. BOARD a) AUTHORIZE STAFF TO CONDUCT REMOTE TELECONFERENCE MEET- INGS OF THE BOARD OF DIRECTORS, INCLUDING COMMITTEE MEET-INGS, 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 EMER- GENCY 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 (MARTINEZ) A motion was made by Director Keyes, seconded by Director Croucher, and carried with the following vote: Ayes: Director Keyes, Croucher, Lopez, Robak, and Smith Noes: None Abstain: None Absent: None to 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 to provisions of Government code § 54953(e). b) DISCUSSION OF 2022 BOARD MEETING CALENDAR (TITA RAMOS- KROGMAN) President Smith inquired about the board members’ requests for District tours. General Manager Martinez stated that the next tour will be held early Decem- ber at the 870-2 Pump Station. There were no changes to the board calendar. 12. FINANCE a) AWARD A CONTRACT TO RAFTELIS FINANCIAL CONSULTANTS, INC. (RAFTELIS) AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT WITH RAFTELIS FOR WATER AND SEWER COST OF SER-VICE STUDIES IN AN AMOUNT NOT-TO-EXCEED $99,975 (KOEPPEN) In response to a recommendation from President Smith, General Manager Jose Martinez stated that the District will perform its water evaluation every two years instead of three. A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Director Keyes, Croucher, Lopez, Robak, and Smith Noes: None Abstain: None Absent: None to award a contract to Raftelis Financial Consultants, Inc., authorize the Gen-eral Manager to execute a contract with Raftelis for water and sewer costs of service studies in an amount not-to-exceed $99,975, and perform water evalu- ations ever two years. INFORMATIONAL ITEMS 13. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMA- TIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) SOCIAL MEDIA AND WEBSITE ANALYTICS UPDATE (SALMERON) The board waived presentation. b) ETHICS POLICY UPDATE (MARTINEZ) The board waived presentation. c) ANNUAL DIRECTORS’ EXPENSE REPORT FOR FISCAL YEAR 2022 (PIN-ION) The board waived presentation. d) FISCAL YEAR 2022 YEAR-END REPORT FOR THE DISTRICT’S FISCAL YEAR 2019-2022 STRATEGIC PLAN (KERR) The board waived presentation. REPORTS 14. GENERAL MANAGER’S REPORT General Manager Martinez announced that Open Enrollment will be held October 11th through the 21st. He also provided an update on water deliveries to Mexico and noted that Mexico re- quested to stop deliveries through the end of the calendar year beginning October 1st. The District has completed their request for the remainder of the calen-dar year. 15. SAN DIEGO COUNTY WATER AUTHORITY UPDATE President Smith reported that CWA’s special agriculture water use rates were ad-justed to be fair and were provided a lower rate. He also reported that MWD passed the non-functional turf proposal and the cut back on irrigation. It was noted that the cut back on irrigation requires collaborating with local cities to become a city ordinance. President Smith also noted that the District’s Strategic Plan efficiency list were well received and appreciated by MWD. Elections were held at CWA and Director Croucher’s last day as Chair at CWA was September 30, 2022 and will hold the first ever Emeritus (past Chair) position effec-tive October 1, 2022, in CWA’s history. President Smith indicated that Mel Katz has taken over as Chair on October 1st (unopposed) and Mr. Nick Serrano as Vice-Chair. Mr. Frank Hilliker was elected as Secretary in a runoff election with Ms. Kim Thorner. President Smith stated that the Lake Hodges Dam needs repairs, and the Water Authority is required to pay 50% of the costs for those repairs. Costs for repairs are between $10 to $13 million which CWA is looking for grants to help make the re- pairs. He also discussed other impacts of this matter. There was a discussion of agricultural rate concerns. Director Croucher stated that he has asked for more information on the agricultural rate as it impacts Otay and other agencies. The Board and staff congratulated Director Croucher on his two years as Chair at CWA. 16. DIRECTORS' REPORTS/REQUESTS Written reports from Directors Croucher, Keyes, Lopez, and Robak were submitted to the District Secretary, which will be attached to the minutes for today’s meeting. 17. PRESIDENT’S REPORT/REQUESTS A written report from President Smith was submitted to the District Secretary and will be attached to the minutes for today’s meeting. RECESS TO CLOSED SESSION 18. CLOSED SESSION The board recessed to closed session at 5:46 p.m. to discuss the following matters: a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOV-ERNMENT CODE § 54956.9(b)] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015-00400000-CU-MC-CTL b) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE § 54956.9] 1 MATTER RETURN TO OPEN SESSION 19. 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 the following action: Agenda Item 17a, the board unanimously voted to appeal decision. OTAY WATER DISTRICT FINANCING AUTHORITY 20. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 21. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 6:40 p.m. President ATTEST: District Secretary TRK:SG Pay To: Tim Smith OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Period Covered: Employee umber: 1845 09/01/22 To: 09/30/22 ITEM l 2 ,, 4 5 6 7 8 9 10 DATE MEETING 09/01/22 Agenda Board Briefing 09/07/22 OWD Board Meeting 09/15/22 Agenda Committee Briefmg 09/20/22 COWU Meeting 09/20/22 EO&WR Committee Meeting 09/20/22 CW A Matters Meeting 09/21/22 East County Caucus Meeting 09/28/22 Chula Vista Chamber of Commerce Meeting 09/29/22 Legislative Day 09130/22 Agenda Board Briefing Total Meeting Per Diem: ($152 per diem) $1,216 Total Mileage Claimed: 192 GM Receipt: PURPOSE / ISSUES MILEAGE DISCUSSED (Via Teleconference}HOMEtoOWD OWDtoHOME: Meeting with GM and Legal Counsel to discuss agenda items for the September 7, - 2022 board meeting Monthly Board Meeting 26 Meeting with GM to discuss agenda items going to the September committee - meetings Monthly Meeting Monthly committee meeting to 26 discuss/review agenda items going to the October board meeting (NO CHARGE) Met with GM Martinez to discuss CWA matters (NO CHARGE) - Discuss East County issues with agencies 44 and CWA Monthly Meeting - Meeting to discuss legislative issues 48 Meeting with Acting GM Beachem and Legal Counsel to discuss agenda items for . October 5, 2022 board meeting miles (Director's Signature) Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ MILEAGE OTHER LOCATIONS - . - 48 - - . . . (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: Gary Croucher Period Covered: Employee Number: 7011 From: 9/01/22 To: 9/30/22 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 9/06/22 Directors Quarterly Meeting Met with GM Martinez to discuss District matters. - - 2 9/07/22 OWD Board Meeting Monthly Board Meeting - - 3 9/20/22 CWA Matters Meeting Met with President Smith and GM Martinez to discuss CWA matters - - 4 - - 5 6 7 8 9 Total Meeting Per Diem: $456 ($152 per diem) Total Mileage Claimed: miles OT A Y WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Ryan Keyes Period Covered: Emplovee Number: 1896 ITEM 2 3 4 5 6 7 8 9 10 DATE MEETING 9-7-22 OWD Regular Board Meeting 9-20-22 EO&WR Regular Committee Meeting Total Meeting Per Diem: ($152 per meeting) $304 Total Mileage Claimed: 0 PURPOSE / ISSUES DISCUSSED Monthly Board Meeting Monthly Committee Meeting Miles GM Receipt: ----- 9-1-22 To: 9-30-22MILEAGE MILEAGE HO�toOWD OTHER OWDtoHOME LOCATIONS - -- -- -- -- -- -- -- -- -- FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ _____ _ INSTRUCTIONS ON REVERSE Pay To: Mark Robak OTAY WATER DISTRICT BOARD OF' DIRECTORS PER-DIEM ANO MILEAGE CLAIM FORM Employee Number 7014 From: ITEM DATE I 9/6/2022 2 9/7/2022 3 9/9/2022 4 9/10/2022 5 9/11/2022 6 9/12/2022 7 9/13/2022 8 9/16/2022 9 9/19/2022 10 9/19/2022 11 9/20/2022 12 9/21/2022 13 9/21/2022 14 9/22/2022 Total Meeting Per Diem: (SIS2 PER a\lEETING) Total Mileage Claimed: GM Receipt: MEETING PURPOSE / ISSUES East County Chamber of Government Affairs & Infrastructure Committee Commerce Otay Water District Board Meeting Easr Couniy Chamber of First Friday Breakfast at Foothills Church -NO Commerce CHARGE WateReuse California Presentations on the latest in water reuse Annual Conference WateReuse California Presentations on the latest in water reuse Annual Conference WateReuse California Presentations on the latest in water reuse Annual Conference WateReuse California Presentations on the latest in water reuse Annual Conference Politics In Paradise Candidate forum at Water Conservation Garden NO CHARGE Otay Finance & Discussed District finance and administration Administration Committee items Otay CPRL&L Committee District Conservation, Public Relations, Legal & Legislative issues -OCI-IARGE Council of Water Utilities Discussion of leak detection East County EDC Monthly Discussion of regional economic matters Meeting Retirement Pat1y for Helix Celebration -NO CHARGE GM, Carlos Lugo SDCWA Board Meeting Monthly Board Meeting s 1,520 Director Signnture �' ::::_ _ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ ____ _ Period Covered 9/1/2022 9/30/2022 ------------- ;\IILE,\GE 110�1£ MILEAGE TO OWD own TO OTIIER IIOi\H: LOC,\TIONS 0 0 7 0 0 0 0 15 0 0 0 0 0 15 0 0 0 0 0 0 0 0 0 10 0 0 0 0 7 40