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HomeMy WebLinkAbout10-07-20 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY October 7, 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 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 agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF JULY 1, 2020 AND AUGUST 5, 2020; AND THE SPECIAL BOARD MEETING OF APRIL 22, 2020 A motion was made by President Croucher, 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 July 1, 2020 and August 5, 2020; and special board meeting of April 22, 2020. 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 7. PUBLIC HEARING ON RATES AND CHARGES THE BOARD WILL BE HOLDING A PUBLIC HEARING TO CONSIDER THE PROPOSED SEWER RATE CHANGES TO BE IMPLEMENTED IN THE FISCAL YEAR 2020-2021 OPERATING AND CAPITAL BUDGETS AND TO AUTHORIZE THE PASS-THROUGH OF INCREASES FROM SEWER SERVICE PROVIDERS AND DISTRICT INCREASES FOR A PERIOD OF FIVE YEARS, FOR FISCAL YEARS 2021-2025, NOT-TO-EXCEED 10 PERCENT ANNUALLY, FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS FROM SEWER SERVICE PROVIDERS. THE BOARD INVITES THE PUBLIC TO PROVIDE COMMENTS ON THE PROPOSED SEWER RATE CHANGES. a) APPROVE THE IMPLEMENTATION OF SEWER RATE CHANGES AS PROPOSED FOR THE FISCAL YEAR 2020-2021 OPERATING AND CAPITAL BUDGETS; ADOPT ORDINANCE NO. 578 AMENDING SECTION 53, AND APPENDIX A, SCHEDULE OF FEES, OF THE DISTRICT’S CODE OF ORDINANCES; AUTHORIZE FOR A PERIOD OF FIVE-YEARS THE PASS-THROUGH OF COST INCREASES FROM SEWER SERVICE PROVIDERS; AND AUTHORIZE, FOR A PERIOD OF FIVE-YEARS, DISTRICT SEWER RATE INCREASES NOT-TO-EXCEED 10 PERCENT ANNUALLY FOR ALL COSTS OTHER THAN PASS-THROUGH COSTS Assistant Chief of Finance reviewed the proposed changes to the sewer rates (please reference the presentation attached to the staff report) and stated staff is proposing an overall rate increase of 2.8% effective January 1, 2021. With the implementation of this increase, the District would be the fifth (5th) lowest cost sewer provider among the twenty-eight (28) sewer service providers in the County of San Diego. Staff is proposing that the Board: • Approve Ordinance No. 578 to adopt the rate, fee and charge changes to sewer billed beginning January 1, 2021. • Authorize for a period of 5 years, all future pass-through increases or decreases to cover changes to sewer rates, fees, or charges from the District’s providers. • Authorize for a period of 5 years, overall average sewer rate increases in addition to the pass-through increases, not to exceed 10% per year of all costs other than pass-through costs. 3 It was indicated that Proposition 218 Rate Increase Notices were forwarded to the District’s sewer customers and no dispute letters have been received. President Croucher opened the public hearing at 3:39 p.m. to receive the public’s comments on the proposed sewer rate increase. As there were no requests to speak, the public hearing was closed at 3:40 p.m. A motion was made by President Croucher, seconded by Director Robak, and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve staff’s recommendation. 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 President Croucher, seconded by Director Thompson, and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve the following consent calendar items: a) APPROVE CHANGE ORDER NO. 8 TO THE EXISTING CONSTRUCTION CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $59,903.35 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b) AUTHORIZE THE ISSUANCE OF PURCHASE ORDERS FOR THE PURCHASE OF SIX (6) FLEET VEHICLES TO: 1) FORD OF CHULA VISTA IN THE AMOUNT OF $102,986.76 FOR THREE (3) 2021 FORD F-150 PICK-UP TRUCKS; 2) FAIRVIEW FORD IN THE AMOUNT OF $84,056.04 FOR TWO (2) 2021 FORD F-250 PICK-UP TRUCKS; AND 3) FRITTS FORD IN THE AMOUNT OF $29,590.75 FOR ONE (1) 2021 FORD RANGER PICK-UP TRUCK. THE TOTAL AMOUNT FOR ALL SIX (6) FLEET VEHICLES IS $216,633.55 ACTION ITEMS 4 9. ENGINEERING AND OPERATIONS a) ADOPT RESOLUTION NO. 4387 APPROVING THE AUGUST 24, 2020 PURCHASE AGREEMENT FOR $182,000 FOR THE JAMACHA BOULEVARD PROPERTY IN SPRING VALLEY AND AUTHORIZE THE GENERAL MANAGER TO COMPLETE THE SALE OF THE PROPERTY Engineering Manager Bob Kennedy requested that the Board adopt Resolution No. 4387 approving the August 24, 2020 Purchase Agreement for $182,000 for the Jamacha Boulevard property in Spring Valley and authorize the General Manager to enter into escrow to complete the sale of the property. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Kennedy’s presentation. A motion was made by President Croucher, 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 staff’s recommendation. 10. GENERAL MANAGER a) ADOPT ORDINANCE NO. 579 AMENDING SECTION 6, CONFLICT OF INTEREST CODE, CONTAINED WITHIN THE DISTRICT’S CODE OF ORDINANCES TO UPDATE THE POSITION TITLES REQUIRED TO FILE A FORM 700; TO INCLUDE THE POLITICAL REFORM ACT (GOVERNMENT CODE SECTION 8100, et seq.) LANGUAGE WITHIN THE DISTRICT’S CODE; AND TO UPDATE THE APPENDIX TO REFLECT CURRENT STATUTE LANGUAGE District Secretary Cruz requested that the Board adopt Ordinance 579 amending Section 6, Conflict of Interest Code, contained within the District’s Code of Ordinances to update the position titles required to file a Form 700, to include the political reform act (Government code Section 8100, et. seq.) language within the District’s Code, and to update the appendix to reflect current statute language. Please reference Attachment A (Committee Action) to the staff report for the details of Ms. Cruz’ presentation. A motion was made by President Croucher, seconded by Director Thompson, and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson 5 Noes: None Abstain: None Absent: None to approve staff’s recommendation. 11. BOARD a) DISCUSS THE 2020 BOARD MEETING CALENDAR Staff noted that the December 2, 2020 Board meeting may be canceled, as has been the practice, if there are no business items requiring board action. INFORMATIONAL ITEMS 12. ANNUAL DIRECTOR’S EXPENSE REPORT FOR FISCAL YEAR 2020 Assistant Chief of Finance Kevin Koeppen presented the Director’s expenses for fiscal year 2020. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Keoppen’s presentation. Director Thompson noted that staff identified the reason why Director’s expenses were slightly higher than last year. Due to the extraordinary circumstances of the COVID-19 pandemic, the District held special board meetings to monitor the status and any impacts the pandemic might have on District operations. Additionally, the board held special meetings for the recruitment of a new general manager. 13. YEAR-END REPORT ON THE DISTRICT’S FISCAL YEARS 2019-2022 STRATEGIC PERFORMANCE PLAN FOR FISCAL YEAR 2020 As this item was presented to both the Engineering, Operations and Water Resources Committee and Finance and Administration Committee; and the information is included in the board packet, it was suggested by President Croucher that if members of the board wished additional information, they could schedule a meeting with staff for a detailed review of the material. The board had no requests or comments. REPORTS 14. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included the District’s response to the COVID-19 pandemic, open enrollment, County’s activated Emergency Operations Center, America’s Water Infrastructure Act of 2018, collections and bad debt exposure, fiscal year 2020 audit, Ralph W. Chapman Water Reclamation Facility disinfection system improvements, July and August water deliveries to Mexico, State Water Resources Control Board Sanitary Survey Report on all potable water sites, and shared interagency assistance. Staff responded to questions and comments from the board. 6 15. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA held its election of officers for the upcoming year and President Croucher was elected CWA’s new Chair starting in October, Ms. Christy Guerin from Olivenhain WD was elected Vice Chair, and Mr. Jerry Butkiewicz from the City of San Diego was elected Secretary. He shared that CWA completed the upgrades to Flow Control Facilities (FCF) Vallecitos WD 11 and Vista Irrigation District 12. He indicated that CWA accomplished a change order rate of -0.5% which demonstrates the expertise of CWA’s staff, consultants, and contractors in estimating project costs accurately which limits the number of change orders. He also reported that the City of Poway requested a treated water connection (a FCF). He stated there was much discussion on how this process occurred as it had been some time since CWA approved a new connection as agencies’ customers are using less water through conservation. The process was identified in CWA’s code and the new FCF with the City of Poway was eventually approved. Dir Smith lastly stated that CWA has been tracking MWD’s rates and a number of agencies from the County of San Diego, including Otay WD, sent letters to MWD requesting that they implement cost containment measures that could be passed on to its ratepayers. This was proposed by CWA’s delegates, but it did not pass in committee. There was a suggestion in committee that MWD look at potential revenues and implement a moratorium on any unplanned expenses in the budget. This suggestion was approved by MWD’s board and the change provided a strong message to MWD that they should not increase costs when they are unable to pass along savings to their ratepayers. President Croucher additionally shared that CWA’s new officers and staff have had several meetings and they have received feedback from some member agencies who have indicated that they felt that their issues have not been heard or that they were heard, but nothing was resolved. He stated that they would be reviewing the feedback and CWA’s process in responding to these concerns. He stated, as new officers, the first thing they address is the board committee assignments and the MWD Delegates performance. He stated that Director Smith and the additional three MWD Delegates have been doing a tremendous job. They are working together better than any team of delegates in the past and they are communicating well with the officers and staff, as well as, building relationships at MWD. He stated that the moratorium on unplanned expenses is one example of what the MWD Delegates have accomplished. This change requires MWD to adhere to their adopted budget and any overruns due to unplanned expense are identified which provides for more transparency. Prior to the change, MWD would continually adjust their budget for unplanned expenses and state at the end of the fiscal year that they were on budget. He also shared with regard to CWA’s appointment of a new General Manager, Ms. Sandy Kerl, that the board wants to hear her vision, ideas and recommendations on how to make things more efficient to keep rates low for CWA’s member agencies. He stated that they would like to also see her lead and develop a new level of communication with member agencies and employees. He reported concerning the MWD litigation, that the 14 to 16 lawsuits are ongoing and CWA will continue to explore different opportunities to augment the region’s water supply sources, such as, Lake Meade storage or agreements for desalination water with Mexico. He shared that the Local Agency Formation Commission (LAFCO) 7 held meetings to discuss Fallbrook PUD and Rainbow MWD’s interest in detaching from CWA and that he and General Manager Martinez will be meeting with Fallbrook PUD next week. He lastly shared that he would be speaking with Otay WD board members to receive their feedback on what can be improved at the CWA level. He also will be working on scheduling a workshop with member agency presidents and general managers to discuss CWA issues. 16. DIRECTORS' REPORTS/REQUESTS Director Thompson indicated that he has submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. He thanked President Croucher and Director Smith for the good work they are doing at CWA. Director Smith reported that he has submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. Director Gastelum reported that he has also submitted a written report to District Secretary Cruz, which will be attached to the minutes for today’s meeting. Director Robak commented on CWA’s last board meeting stated that he felt moving forward that they would be open and forthright. 17. PRESIDENT’S REPORT President Croucher indicated that he nothing further to report. RECESS TO CLOSED SESSION 18. CLOSED SESSION General Manager Martinez indicated that he did not have anything to report on COVID-19 in closed session. The board recessed to closed session at 4:22 p.m. to discuss the following matter: a) GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL 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 4:51 p.m. and General Counsel Dan Shinoff reported that the board took no reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY 8 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 Croucher adjourned the meeting at 4:52 p.m. ___________________________________ President ATTEST: District Secretary 9 Board of Directors Meetings Attended Form Director Name: Gary Croucher Period Covered: From: 8/1/20 To: 8/31/20 Item No. Date Meeting Attended Description 1. 9/2/20 OWD Board Meeting OWD Regular Board Meeting 2. 9/16/20 Committee Agenda Briefing Met w/ GM Martinez to review items that will be presented at the September committee meetings 3 . 9/21/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the October board meeting 4. 9/22/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters 5. 9/30/20 Board Agenda Briefing Met with GM Martinez and GC Blumenfeld to review the October Board Meeting Agenda Board of Directors Meetings Attended Form Director Name: Tim Smith Period Covered: From: 9/1/20 To: 9/30/20 Item No. Date Meeting Attended Description 1. 9/2/20 OWD Regular Board Mtg. Monthly Board Meeting (video conf.) 2. 9/21/20 EO&WR Committee Reviewed items that will be presented at the October Board Meeting (video conf.) 3. 9/22/20 CWA Matters Meeting Discuss CWA Matters (video conf.) 4. 9/23/20 East County Caucus Meeting Discuss East County issues with agencies and CWA (video conf.) 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Board of Directors Meetings Attended Form Director Name:Mitchell Thompson Period Covered: From: 9/1/2020 To: 9/30/2020 Item No. Date Meeting Attended Description 1.9/1/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting 2.9/2/20 OWD Board Meeting See agenda, regular monthly board meeting 3.9/8/20 Otay Engineering Group Mtg Discuss Capacity Fees 4.9/22/20 OWD F&A Committee Mtg See agenda 5.9/28/20 Otay Engineering Group Mtg Discuss Capacity Fees 6. 7. 8. 9. 10. -Instructions on Reverse - EXHIBIT B (Director’s Signature) GM Approval: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER-DIEM AND MILEAGE CLAIM FORM Pay To: Hector Gastelum Period Covered: Employee Number: 1860 From: 9/1/2020 To: 9/30/2020 ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS 1 9/1 OWD BOARD MEETING 2 3 4 5 6 7 8 9 10 11 12 13 Total Meeting Per Diem: $152 ($152 per meeting) 0 Total Mileage Claimed: miles Mark Robak 7014 From:9/1/2020 9/30/2020 ITEM DATE MEETING PURPOSE / ISSUES MILEAGE HOME TO OWD OWD TO HOME MILEAGE OTHER LOCATIONS 1 9/1/2020 East County Chamber of Commerce Government Affairs & Infrastructure Committee 0 0 2 9/2/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0 3 9/3/2020 San Diego Regional Chamber Sustainability & Industry Committee 0 0 4 9/9/2020 Discussion with Rebecca Alvarez with NP Strategies Discuss Water Conservation Garden's objectives in preparation for strategic plan 0 0 5 9/15/2020 Council of Water Utilities Virtual meeting with USBR Commissioner, Brenda Burman 0 0 6 9/18/2020 LAFCO Special Districts Advisory Committee Regular meeting 0 0 7 9/22/2020 Finance & Administration Committee Discussed District finance and administration items 0 0 8 9/24/2020 SDCWA Board meeting Monthly meeting 0 0 0 0 $ 1,216 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: