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Home My WebLink About08-07-24 Board Minutes1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY August 7, 2024 1.The meeting was called to order by President Lopez at 3:35 p.m. 2.ROLL CALL Directors Present:Croucher, Keyes, Lopez and Robak It was noted that the Division 1 Seat is currently vacant due to the resignation of former director Tim Smith on August 2, 2024. Directors Absent: None Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Michael Long, 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 Lopez, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to approve the agenda. 5.APPROVAL OF THE MINUTES OF THE REGULAR BOARD MEETING ON JUNE 5, 2024, AND SPECIAL BOARD MEETING ON JUNE 19, 2024 A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None 2 to approve the minutes of the regular board meeting on June 5, 2024, and special board meeting on June 19, 2024. 6. PRESENTATION OF AWARDS FOR THE 2024 “STUDENT POSTER CONTEST” WINNERS Communications Assistant Eileen Salmeron shared that the Otay Water District’s educational program invited students in its service area to create artwork for the 2024 “Student Poster Contest.” The theme of the artwork is “Being water wise is…” It was noted that middle and high school students did not participate in the contest this year. There were four (4) winners and all from Thurgood Marshall Elementary School in Chula Vista, Division 5. She provided a PowerPoint presentation of the winners and their posters. Several of the winners were able to attend the meeting in person and virtually to give a background of their artwork. The students responded to comments and questions from the board. Ms. Salmeron invited Ms. Christina Dare, the former 6th grade teacher for the students who were winners of the poster contest, to the podium to discuss the history of her class and students. Ms. Dare shared that the student poster contest is a tradition that her former class looks forward to every year. Ms. Dare responded to comments and questions from the board. The board members commended Ms. Dare, parents, and the winning students for their efforts to educate the community about the importance of water conservation. Director Croucher requested that the district research the possibility of posting the students’ artwork at the Water Conservation Garden. 7. PRESENTATION OF THE 2024 “BEST IN DISTRICT” WATERSMART LANDSCAPE CONTEST WINNER Communications Assistant Eileen Salmeron provided a PowerPoint presentation to the board and a history of Ms. Shannon Nembach, the 2024 “Best in District” WaterSmart Landscape contest winner from Chula Vista, Division 4. President Lopez congratulated Ms. Nembach and presented her with an award. Ms. Nembach provided a background of her landscape and responded to comments and questions from the board. Director Croucher noted that the County Water Authority (CWA) has a water academy and requested that staff maintain a list of people within the district’s area who makes the effort to educate their community about the importance of conserving water. He requested that staff research the possibility of sponsoring these individuals so that they can participate in CWA’s water academy. 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. 3 UCONSENT ITEM 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: A motion was made by Director Croucher, seconded by Director Keyes and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to approve the following consent calendar items: a) AUTHORIZE THE GENERAL MANAGER TO ISSUE PURCHASE ORDERS OF UP TO THE BUDGETED AMOUNT, AND ANY INFLATION ADJUSTMENTS IN ADDITION TO THE BUDGETED AMOUNTS, WHEN PRICING FOR VEHICLES AND EQUIPMENT ARE AVAILABLE FOR THE PURCHASE OF SIX (6) FLEET VEHICLES, INCREASE CIP P2282 BY AN ADDITIONAL $200,000 FOR THE PURCHASE OF ONE (1) HYDRO-EXCAVATOR, ONE (1) BACKHOE, AND ONE (1) EMERGENCY STAND-BY GENERATOR, FOR AN OVERALL AMOUNT OF $1,360,000 b) ADOPT RESOLUTION NO. 4443 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2024-2025 TO BE COLLECTED THROUGH PROPERTY TAX BILLS c) ADOPT ORDINANCE NO. 593 TO APPROVE THE PROPOSED CHANGES TO SECTION 23, NON-RESPONSIBILITY OF DISTRICT, AND SECTION 38, SERVICE FOR FIRE PROTECTION SYSTEMS d) AUTHORIZE AN ADDENDUM TO AMEND THE SCOPE OF SERVICES, LENGTH OF TIME, AND TOTAL COMPENSATION FOR THE CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE OTAY WATER DISTRICT AND BURKE, WILLIAMS & SORENSEN, LLP IN AN AMOUNT NOT-TO- EXCEED $115,000 ACTION ITEMS 10. BOARD a) DISCUSSION OF APPOINTMENT TO VACANCY ON THE BOARD OF DIRECTORS, DIVISION 1 General Counsel Dan Shinoff stated that former director Tim Smith submitted his resignation to the district on August 2, 2024. He stated that the board has two options to fill the Division 1 vacancy: 1) Appoint a new director; or 2) Hold a Special Election. If 4 the board choses to hold a special election, it would cost a significant amount of money. General Counsel Shinoff recommended that the board appoint a new director and explained the recruitment and interview process. A press release will go out on Friday, August 9, to solicit applications for the Division 1 vacancy with a deadline to submit them by August 26. An ad hoc committee will be created to review applications and determine which qualified candidates will be invited for an interview at the September 4, 2024, regular board meeting. It is anticipated that a new director will be appointed, sworn in, and seated at the September board meeting. Following the seating of the new director, all required county and state agencies will be sent a notification of the newly appointed director. General Manager Jose Martinez shared that the appointment process discussed by General Counsel Shinoff is consistent with the appointment process that was held back in March to May 2012. General Counsel Shinoff and Mr. Martinez responded to additional comments and questions from the board. A motion was made by Director Keyes, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to approve the appointment and timeline process of a new director to the Division 1 Vacancy on the Otay Water District Board of Directors. b) DISCUSSION OF THE REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY (SECOND SEAT) President Lopez recommended that former director Tim Smith continue to represent the Otay Water District on the County Water Authority board for at least the next 3 months to continue to provide his input, feedback and votes on significant issues such as LAFCO processes, long term financial planning, impacts on rates, and other issues that impact water agencies and ratepayers. It was noted that Mr. Smith is also seated on the Metropolitan Water District’s Finance Committee which he has been a stellar advocate for all water agencies. A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to have former director Tim Smith continue to represent the Otay Water District on the County of Water Authority board for up to 3 months. 5 c) WATER CONSERVATION UPDATE Director Robak provided an update on the Water Conservation Garden (WCG) and indicated that there was a Joint Powers Authority (JPA) meeting on August 6, 2024, and indicated that the Sweetwater Authority issued an Intent Letter to Withdraw from JPA. He stated that Helix, the city of San Diego, County Water Authority also submitted an Intent Letter to Withdraw from the JPA. The agencies have an option to rescind their letters in one year. Director Croucher stated that he has the utmost confidence that the WCG will succeed due to the volunteers. Board members commended Director Robak’s leadership on the Water Conservation Garden. d) RATIFICATION OF THE NOTICE TO THE WATER CONSERVATION GARDEN OF OTAY WATER DISTRICT’S INTENT TO WITHDRAW General Manager Jose Martinez provided an update on the district’s letter that was sent to the Water Conservation Garden (WCG) on July 30, 2024, and also cc’d the district’s board members. As other agencies submitted their Intent Letter to Withdraw from JPA, it was in the best interest of the district to submit a withdraw letter to protect our ratepayers and avoid taking on the full cost of operating the WCG. In response to a question from Director Croucher, the Cuyamaca College does not fund JPA. A motion was made by Director Robak, seconded by Director Croucher, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to approve the ratification of the notice to the Water Conservation Garden of the Otay Water District’s Intent to Withdraw. e) ADOPT RESOLUTION NO. 4445 AUTHORIZING THE REGISTER OF VOTERS TO RENDER SERVICES RELATING TO THE CONDUCT OF AN ELECTION FOR 2024 With no discussion from the board members, a motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None 6 to adopt Resolution No. 4445 authorizing the Register of Voters to render services relating to the conduct of an election for 2024. f) ADOPT RESOLUTION NO. 4447 CONGRATULATING LAKESIDE WATER DISTRICT ON ITS 100TH ANNIVERSARY Director Robak volunteered to attend the anniversary event and present Otay Water District’s adopted resolution to the Lakeside Water District. A motion was made by Director Croucher, seconded by Director Keyes, and carried with the following vote: Ayes: Directors Croucher, Keyes, Lopez and Robak Noes: None Abstain: None Absent: None to adopt Resolution No. 4447 congratulating Lakeside Water District on its 100th Anniversary. g) DISCUSS THE 2024 BOARD MEETING CALENDAR There were no changes to the board calendar. U REPORTS 11. GENERAL MANAGER REPORT Mr. Martinez provided his GM Report to the board and discussed the Joint Power Authority’s member agencies’ funding contribution to the Water Conservation Garden, which is currently $101,105 for fiscal year 2025. He also reported that the district received a notice that Mexico had placed an emergency water delivery request due to a failure in Mexico’s water infrastructure. Otay began water flows to Mexico on July 3, 2024, and will continue the delivery flow until the end of August 2024. 12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher discussed CWA’s approval of Option 2 for their next fiscal year budget, which includes a 14% rate increase. He shared his concerns and the impacts this will have on water agencies and ratepayers. Director Croucher stated that it is important for water agencies to educate customers on why rates are increasing. He shared his concerns with the lack of programs to help customers pay their water bills. 13. 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. 7 14. PRESIDENT’S REPORT President Lopez indicated that he is seeking re-election to the Otay Water District Board of Directors, which will be his sixth term if he is re-elected. He stated that he values working with district colleagues and staff who are dedicated to serving our community. A written report from President Lopez was submitted to District Secretary Ramos- Krogman and will be attached to the minutes for today’s meeting. RECESS TO CLOSED SESSION U 15. CLOSED SESSION The board recessed to closed session at 5:26 p.m. to discuss the following matter: a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to California Government Code §54956.8 Property: SALT CREEK GOLF COURSE 525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency Negotiator: General Counsel Under Negotiation: Disposition of Property 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 [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, CASE NO. 37-2015- 000-CU-MC-CTL RETURN FROM CLOSED SESSION 16. 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 6:21 p.m. and General Counsel Dan Shinoff reported that the board took action on Item 14c (Mark Coziahr, et al. vs Otay Water District, Case No. 37-2015-000-CU-MC-CTL) with a 4-0 vote in favor of a petition seeking review by the California Supreme Court. 8 OTAY WATER DISTRICT FINANCING AUTHORITY 17. NO MATTERS TO DISCUSS 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 Lopez adjourned the meeting at 6:21 p.m. President ATTEST: District Secretary OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Jose Lopez Period Covered: Employee Number: From: 07/01/24 To: 07/25/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 07/09/24 SCEDC South County Economic Development Council Meeting 2 07/12/24 Chula Vista Chamber of Commerce First Friday Breakfast (NO CHARGE) 3 07/16/24 COWU Council of Water Utilities Meeting 4 07/18/24 OWD Meeting with General Manager Martinez 5 07/19/24 OWD Meeting with GM Martinez, Director Smith and General Counsel 6 07/23/24 OWD Monthly Finance & Admin. Committee Meeting 7 07/23/24 OWD Special Board Meeting (NO CHARGE) 8 07/25/24 SDCWA San Diego County Water Authority Monthly Meeting 9 10 OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Gary Croucher Period Covered: Employee Number: From: 07/01/24 To: 07/31/24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED (Via Teleconference) MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 07/23/24 OWD Meeting EO&WR Committee Meeting 2 07/24/24 OWD Meeting CWA Rates Meeting with Director Smith and GM Martinez 3 4 5 6 7 8 9 OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To: Ryan Keyes Period Covered: Employee Number: From: 7-1-24 To: 7-31-24 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 7-15-24 CSDA Course Water Infrastructure Funding Information 2 7-16-24 COWU Lunch COWU Luncheon-no charge 3 7-21-24 CSDA Course Contract Information 4 7-23-24 OWD EO&WR Committee Meeting 5 7-25-24 CSDA Course Special Districts Resilience Summit Mark Robak From:7/1/2024 7/31/2024 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 7/9/2024 South County EDC Monthly Board Meeting 2 7/10/2024 Water Conservation Garden JPA Board Meeting 3 7/11/2024 Water Conservation Garden Walk through with insurance agent 4 7/12/2024 Chula Vista Chamber of Commerce First Friday Breakfast - NO CHARGE 5 7/12/2024 Water Conservation Garden Meet with new Garden IT vendor 6 7/16/2024 Council of Water Utilities Quarterly Meeting 7 7/17/2024 East County EDC Monthly Board Meeting 8 7/18/2024 Otay Water District Ad-Hoc Salt Creek Committee 9 7/22/2024 Water Conservation Garden Meet Supervisor Monica Montgomery Steppe for tour of Garden 10 7/23/2024 Otay Water District Special Meeting, and EO&WR and Finance Committee 11 7/25/2024 San Diego County Water Authority Monthly Board Meeting OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number