HomeMy WebLinkAbout06-03-20 Board Minutes 1
MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY June 3, 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 Smith, and 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 agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETINGS OF MARCH
11, 2020 AND APRIL 1, 2020; AND THE SPECIAL BOARD MEETINGS OF
JANUARY 16, 2020 AND MARCH 18, 2020 A motion was made by Director Robak, and seconded by Director Gastelum and carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: None
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to approve the minutes of the regular board meetings of March 11, 2020 and April 1,
2020; and the special board meetings of January 16, 2020 and March 18, 2020.
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. CONSENT CALENDAR
7. 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 Thompson, and 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 following consent calendar item: a) APPROVE CHANGE ORDER NO. 7 TO THE EXISTING CONSTRUCTION
CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE
AMOUNT OF $60,567.00 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b) ADOPT RESOLUTION NO. 4379 TO CONTINUE WATER AND SEWER
AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL
YEAR 2020-2021 TO BE COLLECTED THROUGH PROPERTY TAX BILLS c) ADOPT RESOLUTION NO. 4380 TO ESTABLISH A REDUCED TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.0035 FOR FISCAL YEAR
2020-2021
d) ADOPT RESOLUTION NO. 4383 AMENDING THE DISTRICT’S RESERVE POLICY, POLICY NO. 25, OF THE DISTRICT’S CODE OF ORDINANCES ESTABLISHING A SEWER RATE STABILIZATION FUND; AND APPROVE
THE TRANSFER OF $175,000 FROM THE SEWER GENERAL FUND TO
THE SEWER RATE STABILIZATION FUND ACTION ITEMS
8. FINANCE AND ADMINISTRATION
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a) ADOPT RESOLUTION NO. 4381 CONSENTING THE DISTRICT TO
ENTER THE JOINT PROTECTION PROGRAMS OF THE ASSOCIATION
OF CALIFORNIA WATER AGENCIES/JOINT POWERS INSURANCE AUTHORITY (ACWA-JPIA) AND ELECT TO JOIN THE LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION PROGRAMS SPONSORED BY ACWA-JPIA; ADOPT RESOLUTION NO. 4382
AUTHORIZING APPLICATION TO THE DIRECTOR OF INDUSTRIAL
RELATIONS, STATE OF CALIFORNIA FOR A CERTIFICATE OF CONSENT TO SELF-INSURE WORKERS’ COMPENSATION LIABILITIES; APPROVE MODIFICATION TO THE DISTRICT’S PURCHASING MANUAL SECTION 7.2.8, BOARD AUTHORIZED PURCHASES EXCEEDING THE
GENERAL MANAGER’S AUTHORITY, TO INCLUDE INSURANCE
SERVICES PROVIDED BY ACWA-JPIA; AUTHORIZE THE GENERAL MANAGER TO SIGN CONTRACTS AND AGREEMENTS AS NEEDED FOR INSURANCE PROGRAM SERVICES ON BEHALF OF THE DISTRICT WITH THE ACWA-JPIA; AND APPOINT A REPRESENTATIVE TO THE
ACWA-JPIA BOARD AND AN ALTERNATE
Finance Manager Eid Fakhouri indicated that staff is requesting that the Board adopt Resolution No. 4381 consenting for the District to enter the joint protection programs of the Association of the California Water Agencies/Joint Powers
Insurance Authority (ACWA-JPIA) and electing to join the liability, property, and
workers’ compensation programs sponsored by the Authority. He additionally requested that the Board adopt Resolution No. 4382 authorizing application to the Director of Industrial Relations, State of California for certificate of consent to self-insure workers’ compensation liabilities and approve the modification to Section
7.2.8, “Board Authorized Purchases Exceeding the General Manager’s Authority,” of
the District’s Purchasing Manual to include insurance services provided by ACWA-JPIA. Ms. Karen Thesing, Director of Insurance Serves for ACWA-JPIA, who assisted the
District in the application process with ACWA-JPIA provided a presentation on the
insurance services that would be provided by ACWA-JPIA. Please reference Attachment A (Committee Action) to the staff report for the details of Mr. Fakhouri and Ms. Thesing’s presentations. Staff and Ms. Thesing responded to questions and comments from the board.
A motion was made by Director Smith, and seconded by Director Thompson and carried with the following vote: Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None Absent: None to approve staffs’ recommendation and appoint Director Thompson as the primary
representative to the JPIA-ACWA board and Director Gastelum as the alternate
representative:
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9. BOARD
a) DISCUSS OF 2020 BOARD MEETING CALENDAR There was discussion because the COVID-19 situation has stabilized, the District
could move from convening monthly special board meetings to returning to meeting
monthly on the board’s regularly scheduled meeting day (first Wednesday of each month). Additionally, the COVID-19 updates would continue to be included at the regular monthly board meetings. There was further discussion that the District also has the option to convene an emergency or special board meeting whenever
necessary.
A motion was made by President Croucher, and 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 cancel the special board meetings for COVID-19 updates and include the
updates at the District’s regular board meetings held on the first Wednesday of each month at 3:30 p.m. INFORMATIONAL ITEMS
10. THIRD QUARTER OF FISCAL YEAR 2020 CAPITAL IMPROVEMENT PROGRAM (CIP) REPORT The board waived presentation of the CIP update and concurred to receive and file
the report.
WORKSHOP 11. ADOPT RESOLUTION NO. 4384 TO APPROVE THE FY 2020-2021 OPERATING
AND CAPITAL BUDGET WITH A ZERO PERCENT (0%) RATE INCREASE FOR
WATER AND SEWER; APPROVE FUND TRANSFERS FOR POTABLE, RECYCLED, AND SEWER; ADOPT THE SALARY SCHEDULE; AND DIRECT STAFF TO DRAFT AND MAIL SEWER PROPOSITION 218 HEARING NOTICES TO CUSTOMERS
OPTIONALLY, ADOPT RESOLUTION NO 4384 TO APPROVE THE FY 2020-2021 OPERATING AND CAPITAL BUDGET WITH A HALF (2.9%) OR FULL (5.8%) RATE INCREASE FOR WATER AND A HALF (2.8%) OR FULL (5.6%) RATE INCREASE FOR SEWER WITH THE FOLLOWING ADDITIONAL ACTIONS:
ADOPT THE HALF RATE INCREASE OR FULL RATE INCREASE ALTERNATIVE
TRANSFER SCHEDULE; ADOPT ORDINANCE NO. 577 AMENDING APPENDIX
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A WITH THE APPROVED WATER RATE CHANGE, EFFECTIVE JANUARY 1,
2021; DIRECT STAFF TO DRAFT AND MAIL WATER RATE INCREASE
NOTICES; AND DIRECT STAFF TO DRAFT AND MAIL SEWER PROPOSITION 218 HEARING NOTICES WITH THE PROPOSED FULL-RATE INCREASE ALTERNATIVE OR THE HALF-RATE INCREASE ALTERNATIVE TO CUSTOMERS
Chief Financial Officer Beachem indicated that this is the third budget workshop. Staff will cover the operating budget, staffing highlights, materials and maintenance costs, and administrative costs. He reviewed the objectives of the workshop which included:
• Presentation of a $97.5 million Operating Budget and $8.5 million CIP Budget for approval
• Request approval of the annual fund transfers
• Request adoption of the Salary Schedule
• Request approval of a 0% water rate increase and 0% sewer rate increase for FY 2021; or alternately approve a full-rate increase and/or half-rate
increase
• Direct staff to draft and mail sewer Proposition 218 hearing notices Presentations were then provided by staff that included the proposed potable and
recycled budget, the sewer budget, PERS and OPEB funding, and each of the Department Chiefs reviewed their department budgets for FY 2021 which was comprised of the Capital Improvement Project (CIP) budget for FY 2021, the CIP plan for the next six (6) years and the details of the operating budget. During the presentations there were questions asked by members of the board and responses
were provided by staff. It was discussed due to the unknown financial impact of the COVID-19 pandemic, staff reviewed all expenses when developing the FY 2021 budget and identified those that could be reduced throughout the District (please reference page 5 of the
staff report reviewing the $5.9 million in savings achieved by this review). Staff is proposing a 0% increase for both water and sewer rates and will continue to monitor the District’s budget. If necessary, staff may return to the board in September or October proposing additional savings initiatives and rate modifications. It was noted that had staff proposed rate increases consistent with the District’s historical
practice, 100% of the half and full increases would be attributable to water supplier rate increases. The board discussed and supported a half water and sewer rate increase of 2.9% and 2.8% respectively. Director Gastelum stated that he could not justify a rate
increase this year when the nation currently has a 30% unemployment rate. President Croucher noted that by implementing a halt rate increase, the District would not need to spike rates next year. A spike in rates is much more difficult for customers to bear financially.
Assistant Chief of Finance Kevin Koeppen requested that the board:
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• Adopt Resolution No. 4384 to approve the FY 2020-2021 Operating and Capital Budget with a half rate increase of 2.9% and 2.8% for water and sewer respectively
• Approve fund transfers for potable, recycled, and sewer
• Adopt Ordinance No. 577 to amend the Code of Ordinances, including Appendix A, with the proposed water and sewer rate increases effective January 1, 2021
• Adopt the Salary Schedule pursuant to CA Code of Regulations 570.5 (CalPERS enforced)
• Direct staff to draft and mail water rate increase notices
• Direct staff to draft and mail sewer Proposition 218 notices A motion was made by Director Smith, and 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 staffs’ recommendations. President Croucher left the meeting at 5:19 p.m. due to another commitment. REPORTS
12. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report that included an update on the District’s response to the COVID-19 pandemic, potable and recycled
water purchases, the annual fuel island inspection and recertification, collections and bad debt exposure due to COVID-19, customer calls related to COVID-19, the temporary lower Otay pump station redundancy, the Chula Vista Fire Department conducting training at the Salt Creek property, and the Consumer Confidence Report. Staff responded to comments from Director Smith.
13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA provided an update during their May meeting on their mid-year budget development. He noted that CWA’s water sales were down
approximately 12% and staff identified $44.5 million in permanent and temporary savings Due to the rate increases from MWD and CWA seeking to maintain its reserves levels, along with the reduced water sales, CWA’s rate increase was set at 6.3%, which is down from the original estimated 20% increase. He also shared with regard to Fallbrook PUD and Rainbow MWD’s proposal to detach from CWA, the
CWA board took a position that LAFCO consider in their review the financial impacts on property tax revenues, the reliance on the Bay Delta, and voting rights at
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MWD, etc. He lasted reported with regard to water storage that CWA has
determined that it would sell 30,000 AF of excess stored water (excess above the
three years of stored emergency water supply) before purchasing water which will provide additional cost savings. 14. DIRECTORS' REPORTS/REQUESTS
Directors Smith, Thompson, Gastelum and Robak reported that they have submitted their written reports to District Secretary Cruz and that their reports will be attached to the minutes for today’s meeting.
15. PRESIDENT’S REPORT
District Secretary Cruz reported that President Croucher had provided her his report as well and it will be attached to the minutes for today’s meeting.
16. CLOSED SESSION
The board recessed to closed session at 5:39 p.m. to discuss the following matters: a) DISCUSSION RELATING TO CORONAVIRUS (COVID-19) AND PUBLIC
SERVICES [GOVERNMENT CODE §54957]
b) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to California Government Code section 54956.8
Property: SALT CREEK GOLF COURSE
525 HUNTE PARKWAY CHULA VISTA, CA 91914 Agency negotiator: General Counsel
Under negotiation: Disposition of Property c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE NO. 37-2020-00001510-CU-WM-CTL d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
[GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. FALLBROOK PUBLIC UTILITY DISTRICT; CASE NO. 37-2017-00019348-CU-WM-CTL
17. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY
ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
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The board reconvened from closed session at 6:17 p.m. and General Counsel Dan
Shinoff reported that the board took no reportable actions in closed session. OTAY 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, Vice President Robak adjourned the meeting at 6:18 p.m.
___________________________________ President
ATTEST:
District Secretary
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Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 5/1/20 To: 5/31/20
Item No. Date Meeting Attended Description
1.
5/1/20 Meeting with GM & Counsel Discuss City of San Diego Recycled Contract
5/1/20 Board Agenda Briefing Met with General Manager Martinez and General Counsels Shinoff and Blumenfeld to review the May
Board Meeting Agenda
2.
5/5/20 Meeting with GM & Employee Assoc. Met with General Managers Martinez and the Employee Association representatives
3.
5/6/20 OWD Board Meeting OWD Regular Board Meeting
4.
5/7/20 Meeting with GM & Counsel Discussed a HR matter
5.
5/14/20 Committee Agenda Briefing Met w/ General Manager Martinez to review items that will be presented at the May committee meetings
6.
5/19/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the June board meeting.
7.
5/20/20 Special Board Meeting Update on impacts of COVID-19 to District operations
8.
5/26/20 CWA Matters Mtg Met with Dir Smith and GM Martinez to discuss CWA matters
9.
5/27/20 Board Agenda Briefing Met with General Manager Martinez and General Counsels Shinoff and Blumenfeld to review the June Board Meeting Agenda
Board of Directors Meetings Attended Form
Director Name: Tim Smith Period Covered:
From: 5/1/20 To: 5/31/20
Item No. Date Meeting Attended Description
1.
5/6/20
OWD Regular Board Meeting
Monthly Board Meeting (video conf.)
2.
5/19/20
EO&WR Committee
Reviewed items that will be presented at the June Board Meeting (video conf.)
3.
5/20/20
OWD Special Board Meeting
Special Board Meeting – COVID-19 Update (video conf.)
4.
5/22/20
Quarterly Meeting
Reviewed Quarterly Update with GM (video conf.)
5.
5/26/20
CWA Matters Meeting Discuss CWA Matters (video conf.)
6.
5/27/20
East County Caucus Meeting
Discuss East County issues with agencies and CWA (video conf.)
7.
8.
9.
10.
-Instructions on Reverse -
Board of Directors Meetings Attended Form
Director Name:Mitchell Thompson Period Covered:
From: 5/1/20 To: 5/31/20
Item
No.
Date Meeting Attended Description
1.5/6/20 OWD Regular Board Mtg See agenda
2.5/5/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting
3.5/28/20 SD County Water
Authority Meeting
SDCWA Agenda to discuss budget, rate increases
4.5/18/20 F&A committee meeting Agenda
5.5/20/20 Special Board Meeting Updates on covid-19
6.5/1/20 Bd Presiddnt, GM, Counsel City of SD Recycled Water contract
7.5/20/20 SCEDC Binational
Committee Meeting
Represent OWD at Meeting
8.5/21/20 CSDA Zoom Mtg Update on regional water issues. Gave an update of
Otay’s covid-related issues and heard what other agencies
were also doing.
9.5/27/20 CV Chamber Utility
subcommittee mtg
Represent OWD
10.
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: 5/1/2020 To: 5/31/2020
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
1
5/6 OWD BOARD MEETING
2 5/8 MEETING W-GARY
CROUCHER & GM
Masks
3 5/14 Quarterly meeting with GM
4
5/20 Emergency Teleconference
Meeting of the Board of Directors
5
5/21 CSDA QUARTERLY MEETING Update on regional water issues & received an
update fr other agencies on their resp to COVID-19.
6
5/22 Webinar: Integrated Resources
Plan- Stakeholder Workshop
MWD
7
5/27 Chula Vista Chamber of
Commerce monthly meeting
8
5/28 Webinar: Discountinuing Water
Service during COVID-19
CSDA
9
10
11
12
13
Total Meeting Per Diem: $1,216
($152 per meeting)
Total Mileage Claimed: miles
Mark Robak
7014 From:5/1/2020 5/31/2020
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 5/5/2020 East County Chamber of
Commerce
Government Afffairs & Infrstraucture
Committee 0 0
2 5/6/2020 OWD Board Meeting OWD Monthly Board Meeting 0 0
3 5/7/2020 SD Chamber Sustainability &
Industry Committee Monthly meeting 0 0
4 5/18/2020 Finance & Administration
Committee
Discussed District finance and administration
items 0 0
5 5/20/2020 OWD Board Meeting Special Board Meeting to Discuss Coronavirus
response 0 0
6 5/21/2020 CSDA Quarterly Meeting Meeting with collegues from other agencies 0 0
7 5/20/2020 MWD IRP Plan Plan for potential water supply reliability
challenges and opportunities through 2045 0 0
8 5/28/2020 SDCWA Board Meeting Monthly Meeting 0 0
0 0
$ 1,216
0 Miles
GM Receipt: Date: ___________________
Pay To:Period Covered
Employee Number
Total Mileage
Claimed:
Director Signature
($152 PER MEETING)
Total Meeting Per
Diem:
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM