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HomeMy WebLinkAbout11-04-20 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY November 4, 2020 1. The meeting was called to order by General Manager Martinez at 3:30 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Staff Present: General Manager Jose Martinez, General Counsel Dan Shinoff, General Counsel Jeanne Blumenfeld, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Finance Kevin Koeppen, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by President Croucher, 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. RECOGNITION OF SENIOR UTILITY WORKER/EQUIPMENT OPERATOR BRANDON PERRY FOR RECEIVING THE HEROISM AWARD FROM THE AMERICAN WATER WORKS ASSOCIATION AND THE AWWA CALIFORNIA/NEVADA SECTION Communications Officer Tenille Otero presented Senior Utility Worker/Equipment Operator Brando Perry the Heroism Award from the American Water works Association (AWWA) and the AWWA California/Nevada Section for helping rescue a family from their vehicle after it overturned in a traffic accident. Mr. Perry was awarded the High Five Award by the District and staff felt that Mr. Perry’s actions were exceptional and was worth submitting to ACWA’s Heroism Award. Mr. Perry will be formally presented the award at the AWWA fall conference. Mr. Perry thanked the District for the recognition and the Board thanked and congratulated Mr. Perry for his commendable actions. 2 6. APPROVE THE MINUTES OF THE REGULAR MEETING OF SEPTEMBER 2, 2020 AND SPECIAL BOARD MEETINGS OF MAY 20, 2020 AND AUGUST 24, 2020 A motion was made by Director Thompson, seconded by Director Smith, 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 meeting of September 2, 2020 and special board meetings of May 20, 2020 and August 24, 2020. 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 No one wished to be heard. 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 Robak, seconded by President 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 item: a) AWARD A CONSTRUCTION CONTRACT TO CORA CONSTRUCTORS, INC. FOR THE 1090-1 PUMP STATION RENOVATION PROJECT IN AN AMOUNT NOT-TO-EXCEED $696,001 ACTION ITEMS 9. FINANCE AND ADMINISTRATION 3 a) ADOPT ORDINANCE NO. 580 AMENDING SECTION 28, CONNECTION FEES AND CHARGES FOR POTABLE OR RECYCLED WATER SERVICE; SECTION 31, TEMPORARY WATER SERVICE; AND APPENDIX A OF THE CODE OF ORDINANCES TO ADJUST THE DISTRICT’S WATER AND SEWER CAPACITY FEES; ADDITIONALLY, ADOPT RESOLUTION NO. 4389 AMENDING POLICY 25, RESERVE POLICY, WITH ALL CHANGES TO BE EFFECTIVE DECEMBER 1, 2020 Assistant Chief of Finance Kevin Koeppen requested that the Board adopt Ordinance No. 580 amending Section 28, Connection Fees and Charges for Potable or Recycled Water Service; Section 31, Temporary Water Service; and Appendix A of the District’s Code of Ordinances to adjust water and sewer capacity fees. Additionally, adopt Resolution No. 4389 amending Policy 25, Reserve Policy, with all changes to be effective December 1, 2020. Mr. Tom Gould of HDR, Inc. was in attendance of the meeting to review the findings of the Water and Sewer Capacity Fee Study on Mr. Shawn Koorn’s behalf, also of HDR, Inc., who performed the study. Please reference Attachment A (Committee Action) to the staff report for the details of Messrs. Koeppen and Gould’s presentations. Public Comments: Mr. Michael McSweeny of the Building Industry Association shared his organization’s and the developer’s concern on the findings of the Water and Sewer Capacity Fee Study. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. McSweeny’s comments. Mr. McSweeny additionally indicated that the development community wishes to understand the District’s calculation of projected EDU’s. Their understanding is the future EDU’s are calculated to determine the future size and scope of new facilities and to allocate existing facilities. The District is using a ratio of 2.87 persons for each additional EDU and based on their initial research they calculate the ratio to be closer to 4 persons per EDU as they expect future new developments to be much more densely populated with less single family detached homes. They are requesting that the Board delay acting on this item for a month so they may work with staff to determine the population per EDU. There was much discussion and staff and the Board Finance and Administration Committee members responded to questions and comments from the board. A motion was made by President Croucher, seconded by Director Smith to implement the recommended adjustments to the District’s water and sewer capacity fees as presented by staff effective December 3, 2020. Additionally, that staff continue to work with the BIA on their concerns. Director Thompson requested that the motion be amended to direct staff to present in 6 months to a year their review for an alternative methodology that considers incremental increases in calculating capacity fees for fixture counts above the ¾-inch meter size. Director Robak requested an additional amendment to wait on adopting the changes to the water and sewer capacity fees until the January 2021 board meeting. President Croucher indicated that by delaying the adoption of the proposed capacity fee increases, the cost is being put onto current ratepayers which is estimated to 4 already be over $1,000,000 plus an additional $140,000 if the District waited until January 2021 to take action. The discussion with the BIA is more about what can be done in the future and he did not see the purpose of delaying action on capacity fees. He indicated that if nothing new is determined before the December 2, 2020 board meeting that the new proposed capacity fees would go into effect on December 3, 2020. He further indicated with regard to Director Thompson’s amendment to the motion, that he would like to keep that separate from this motion. Director Smith concurred with President Croucher. General Counsel Jeanne Blumenfeld suggested that the implementation date be amended to December 7, 2020 as the District’s special board meeting may be scheduled on Friday, December 4, 2020. President Croucher and Director Smith accepted the amendment to the date of implementation and the motion and second carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve staff’s recommendation to adjust the District’s water and sewer capacity fees as presented in staffs report to be implemented on December 7, 2020 and to continue discussions with the BIA and if new information is identified, that the matter be agendized for further discussion at the December 4, 2020 special board meeting. b) APPROVE THE AUDITED FINANCIAL STATEMENTS, INCLUDING THE INDEPENDENT AUDITORS’ UNQUALIFIED OPINION, FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Senior Accountant Marissa Dychitan indicated that staff is requesting that the Board approve the audited financial statements, including the independent auditors’ unqualified opinion, for the fiscal year ended June 30, 2020. Messrs. Joshua Calhoun, Partner, and Rick Gallo, Auditor in Charge, of Teaman, Ramirez, & Smith, Inc., were in attendance of the meeting to provide a review of the audit process and results of the audit. Please reference Attachment A (Committee Action) to the staff report for the details of Ms. Dychitan’s and Mr. Calhoun’s presentations. Staff and Mr. Calhoun responded to questions and comments from the Board. A motion was made by Director Robak, seconded by Director Smith 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. 5 10. BOARD a) ADOPT RESOLUTION NO. 4388 AMENDING BOARD OF DIRECTORS POLICY 8, DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS SECTION A, DIRECTORS’ PER DIEM; SECTION E, MISCELLANEOUS; EXHIBIT A, APPROVED FUNCTIONS LIST; AND GRAMMATICAL AND STYLISTIC EDITS General Manager Martinez indicated this item is to request that the Board adopt Resolution No. 4388 amending Board of Directors Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, Section A, Directors’ Per Diem; Section E, Miscellaneous; Exhibit A, Approved Functions List; and grammatical and stylistic edits. Mr. Martinez reviewed information in the staff report. The Board had no comments or questions. A motion was made by Director Thompson, seconded by Director Smith 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. b) DISCUSS THE 2020 AND 2021 BOARD MEETING CALENDAR It was discussed that the District will be canceling its Dec 2 board meeting and will hold a Special Board Meeting on Friday, December 4, 2020. INFORMATIONAL ITEMS 11. WATER AND SEWER CAPACITY FEE MORATORIUM UPDATE Assistant Chief of Finance Koeppen provided an update on the water and sewer capacity fee moratorium that was implemented on April 1, 2020. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Koeppen’s presentation. Staff responded to questions and comments from the board. 12. SOCIAL MEDIA AND WEB ANALYTICS UPDATE Communications Officer Tenille Otero and Communications Assistant Eileen Salmeron presented an update on the District’s social media and website analytics. Please reference Attachment A (Committee Action) to the staff report for the details of Mss. Otero and Salmeron’s presentation. 6 Director Thompson inquired if staff tracked the cost in maintaining and updating social media posts/information and its efficacy in reaching District customers and its Spanish speaking customers. Staff indicated that they did not track the cost at this time, but certainly could do so. It was requested that the information be provided to the Conservation, Public Relations, Legal and Legislative Committee (CPRL&L Committee). Staff indicated that the data from the website analytics does not provide information by Director Divisions, however, it does provide location by users’ computer’s IP address zip code. Staff can guess using the zip code, but cannot be certain as the actual address location is not known. Staff also indicated that they do post content on the social media platforms in both English and Spanish. Additionally, most of the District’s website pages is duplicated and translated in Spanish. Director Robak also shared information from discussions from the CPRL&L Committee and noted the increases in engagements/views on the District’s social media accounts/posts and website. Staff responded to further questions and comments from the board. President Croucher left the meeting at 5:49 p.m. as he had another commitment. REPORTS 13. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included the COVID-19 financial impact reporting by water suppliers, District’s collections and bad debt exposure, Mexico water deliveries, and requests for interagency assistance. Staff responded to questions and comments from the board. 14. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA graciously thanked the Otay WD for sending a letter to Metropolitan Water District (MWD) requesting that they explore budget cuts to reduce rate increases which are then passed on to ratepayers. From CWA’s standpoint rates will stay the same after identifying $44.5 million in savings and a plan to utilize $80 million from the rate stabilization fund for the next couple years to reduce the rate increase to its member agencies. Another challenge CWA is addressing is reduced water sales. Though CWA is selling less water, it is also purchasing less water, and from a financial standpoint, the reduced purchases have increased overall revenues 2%. He also shared that during a presentation of CWA’s Asset Management Program, Otay WD was mentioned as a partner who is collaborating with CWA on the program and integrating it with their GIS system. He indicated an annual update was provided on the Carlsbad Desalination Plant and it was reported that the production cost for an acre foot of water from the plant is approximately $2800. CWA was reviewing ways to reduce this cost and found that power was a major contributor to production cost. For the first month, CWA was able to do a paper transfer of the power from the Rancho Penasquitos Hydro Station directly into the Carlsbad Desalination Plant which allowed CWA to avoid paying retail rate for power. Staff will continue to explore ways to buy wholesale power as opposed to SDG&E retail power. He noted that Chair Croucher presided 7 over his first CWA meeting and he shared things he would like to accomplish over the next two years, which included, providing training to members of the board (leadership training, diversity training, etc.) and scheduling a board retreat sometime next year. He stated he would like to see Otay WD do the same. 15. DIRECTORS' REPORTS/REQUESTS Directors Smith, Thompson, Gastelum and Robak reported that they submitted their written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. 16. CLOSED SESSION General Manager Martinez indicated that he did not have anything to report on COVID-19 in closed session and there would be no need to meet in closed session. 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, Vice President Robak adjourned the meeting at 6:22 p.m. ___________________________________ President ATTEST: District Secretary 8 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 10/1/20 To: 10/31/20 Item No. Date Meeting Attended Description 1. 10/7/20 OWD Board Meeting OWD Regular Board Meeting 2. 10/13/20 Meeting w/ Fallbrook PUD Met w/ General Manager Jose Martinez and Fallbrook PUD Board President and General Manager to discuss Fallbrook’s Proposed Detachment from CWA 3. 10/14/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the October committee meetings 4. 10/16/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters 5. 10/19/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the November board meeting 6. 10/20/20 CPRL&L Committee Reviewed and made recommendation on items that will be presented at the November board meeting 7. 10/22/20 CWA Matters Follow-up Meeting Met with Dir Smith and GM Martinez for a follow-up discussion on CWA matters 8. 10/28/20 Board Agenda Briefing Met with GM Martinez and GC’s Dan Shinoff and Blumenfeld to review the November Board Meeting Agenda Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 10/1/20 To: 10/31/20 Item No. Date Meeting Attended Description 1. 10/2/20 South County EDC South County EDC Economic Summit (video conf.) 2. 10/7/20 OWD Regular Board Mtg. Monthly Board Meeting (video conf.) 3. 10/15/20 Employee Appreciation (NO PER DIEM) Participated in Employee Appreciation event (video conf.) 4. 10/16/20 CWA Matters Meeting Discuss CWA Matters (video conf.) 5. 10/19/20 EO&WR Committee Reviewed items that will be presented at the November Board Meeting (video conf.) 6. 10/21/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 7. 10/22/20 CWA Matters Meeting #2 Discuss CWA Matters (video conf.) 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 10/1/2020 To: 10/31/2020 Item No. Date Meeting Attended Description 1.10/6/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting 2.10/7/20 OWD Board Meeting See agenda, regular monthly board meeting 3.10/18/20 SCEDC Trans & Infrastructure Comm Represent OWD 4.10/21/20 OWD AD Hoc Policy 8 Comm Mtg Discuss revisions to Board Policy 8 5.10/19/20 OWD FA&C Comm Mtg Agenda 6.10/22/20 Otay Mesa Chamber Annual Awards Event Present service provider for the year award on behalf of OWD. 7.10/27/20 Water Conservation JPA Board Mtg Agenda 8.10/28/20 Chula Vista Chamber Utility & infrastructure Comm Mtg Agenda 9. 10. -Instructions on Reverse - Mark Robak 7014 From:10/1/2020 10/31/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 10/2/2020 South County EDC 30th Annual Economic Summit 0 0 2 10/6/2020 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 3 10/7/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 4 10/15/2020 East County Chamber of Commerce Politics in Paradise Event at Water Conservation Garden 0 0 5 10/19/2020 Finance & Administration Committee Discussed District finance and administration items 0 0 6 10/20/2020 CPRL&L Committee Discussed District Conservation, Public Relations, Legal, and Legislative items 0 0 7 10/21/2020 Ad Hoc Policy 8 Committeee Discuss changes to Policy 8 in Otay Code of Ordinance 0 0 8 10/22/2020 SDCWA Board meeting Monthly meeting 0 0 9 10/27/2020 Water Conservation Garden JPA Quarterly Meeting 0 0 0 0 $ 1,368 0 Miles GM Receipt: Date: ___________________ FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________ OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered Employee Number Total Mileage Claimed: Director Signature ($152 PER MEETING) Total Meeting Per Diem: