HomeMy WebLinkAbout03-11-20 Board Minutes 1
MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY March 11, 2020 1. The meeting was called to order by President Croucher at 3:31 p.m.
2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
Staff Present: General Manager Mark Watton, New General Manager Jose Martinez, General Counsel Dan Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Engineering Dan Martin, 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, and 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. PRESENTATION OF SCHOLARSHIP FUND FOR CUYAMACA COLLEGE’S CENTER FOR WATER STUDIES
Director Thompson presented on behalf of the District’s Board of Directors a scholarship named in honor of the District’s retiring General Manager, Mark Watton, titled the “Mark Watton Scholarship Fund for the Cuyamaca College Center for Water Studies”. The scholarship fund will provide scholarships to students enrolled in the College’s Center for Water Studies Program which prepares students to work
in the water industry. The District’s board members each thanked General Manager Watton for his service to the District and his impact on the industry. General Manager Watton thanked the board for the honor of having a scholarship in his
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namesake. He stated the success of the District is due to its employees and a scholarship fund to prepare the next generation of water industry employees is wonderful recognition. The representatives from Cuyamaca College, Chancellor
Lynn Neault, President Julianna Barnes and Former Water Studies Program Coordinator Don Jones thanked the District for the initiation of the new scholarship fund. 6. PRESENTATION FROM THE CITY OF POWAY TO EXPRESS THEIR
APPRECIATION TO THE OTAY WATER DISTRICT Mr. Eric Heidemann, City of Poway Director of Public Works, thanked the District on behalf of the City of Poway and its residents for the assistance the Otay Water District provided on November 30, 2019 in response to a water emergency which
required the City of Poway to purge their entire water distribution system The Otay Water District, along with nine (9) other agencies, assisted their City in getting their system back online. Mr. Heidemann indicated that if the District ever needed the City of Poway’s assistance, they will be ready to assist. He again thanked the District and its staff.
7. PRESENTATION OF PROCLAMATION BY CHAIRMAN GREG COX, COUNTY OF SAN DIEGO BOARD OF SUPERVISORS County of San Diego Board of Supervisor Chair Greg Cox presented a
Proclamation recognizing retiring General Manager Watton for his service to the County of San Diego. He stated that he was presenting a Proclamation on behalf of the County of San Diego Board of Supervisors in recognition of his contributions to the region and is declaring March 11, 2020 as Mark Watton day throughout the County of San Diego. General Manager Watton thanked Chairman Cox and the
County Board of Supervisors for the honor. The Board recessed at 4:04 p.m. for a reception honoring General Manager Mark Watton on his retirement and reconvened at 4:27 p.m.
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.
A moment of silence was observed in honor of Mr. John Masson who passed away on March 10, 2020 after a year-long battle with cancer. Mr. Masson served on the City of Escondido’s Council since 2012 and was the City’s representative on the San Diego County Water Authority Board of Directors.
9. CLOSED SESSION
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The board recessed to closed session at 4:30 p.m. to discuss the following matter: a) CONFERENCE WITH LABOR NEGOTIATORS [GOVERNMENT CODE
§54957.6] AGENCY DESIGNATED REPRESENTATIVES: BOARD AD HOC GM RECRUITMENT COMMITTEE MEMBERS
EMPLOYEE: JOSE MARTINEZ 10. APPROVE GENERAL MANAGER’S EMPLOYMENT CONTRACT
The board reconvened at 4:59 p.m. and General Counsel Dan Shinoff reported that the board took action on an employment contract between the District and the District’s new general manager, Jose Martinez, dated March 11, 2020. The terms of compensation and fringe benefits includes a base salary of $240,000 for services rendered from February 17, 2020 to February 14, 2021. He, additionally, indicated
that Mr. Martinez will be entitled to the same medical and dental benefits provided through the District’s medical plan for himself and his dependents and vacation/sick leave provided to other executive management employees. He stated that no automobile or monthly car allowance would be provided.
A motion was made by Director Thompson, 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 approve the contract between the District and new general manager Jose Martinez dated March 11, 2020.
11. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF OCTOBER 2, 2019 AND SPECIAL BOARD MEETING OF OCTOBER 8, 2019 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 meeting of October 2, 2019 and special board meeting of October 8, 2019.
CONSENT CALENDAR 12. 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, 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 approve the following consent calendar items:
a) ADOPT RESOLUTION NO. 4377 DESIGNATING A CHANGE OF AUTHORIZED SIGNATORIES FOR THE DISTRICT’S BANK ACCOUNTS AND AUTHORIZE THE NEW GENERAL MANAGER TO ENTER INTO BANKING CONTRACTS WITH MUFG UNION BANK, N.A.
b) APPROVE AN INCREASE TO THE CIP S2070 BUDGET IN THE AMOUNT OF $65,000 (FROM $150,000 TO $215,000) AND AUTHORIZE AN AGREEMENT WITH KAY CONSTRUCTION FOR THE HIDDEN MOUNTAIN SEWER PUMP STATION WET WELL RENOVATION PROJECT IN AN
AMOUNT NOT-TO-EXCEED $142,940 c) APPROVE AN INCREASE TO THE CIP P2609 BUDGET IN THE AMOUNT OF $500,000 (FROM $800,000 TO $1,300,000) AND AUTHORIZE A CONSTRUCTION AGREEMENT WITH LB CIVIL CONSTRUCTION, INC.
FOR THE DICTIONARY HILL WATER LINE REPLACEMENT PROJECT – 2019 (CIP P2608, P2609, P2655) IN AN AMOUNT NOT-TO-EXCEED $1,345,315 ACTION ITEMS
13. BOARD a) DISCUSS OF 2020 BOARD MEETING CALENDAR
There were no changes to the board meeting calendar. INFORMATIONAL ITEMS
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14. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE
FOLLOWING AGENDA ITEMS: a) PRESENTATION ON THE CUSTOMER OPINION SURVEY Communications Officer Tenille Otero and the District’s consultant, Mr. Timothy
McLarney, the president of True North Research, Inc. presented the findings of the Customer Opinion Survey conducted in January 2020. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Ms. Otero’s and Mr. McLarney’s report.
Mr. McLarney indicated that the District’s Communications, Public Relations, Legal & Legislative Committee inquired about the respondents he had identified as located in “other unincorporated areas” with regard to questions concerning desalinated water as a solution for water reliability. He explained that he had misspoke and that the “other” refers to respondents from small areas of Bonita, La
Mesa, and San Diego. Director Thompson indicated that he wished future surveys to delve more into the reasons Asian and Hispanic customers had a higher percentage of “very dissatisfied” respondents with regard to the questions, “providing high quality water”
and “providing water that is safe to drink” than other ethnicities. Ms. Otero and Mr. McLarney responded to additional questions and comments from the board.
b) SECOND QUARTER OF FISCAL YEAR 2020 CAPITAL IMPROVEMENT PROGRAM REPORT Assistant Chief of Engineering Dan Martin provided an update on the District’s second quarter of FY 2020 Capital Improvement Program. He indicated that the FY
2020 budget is divided into 113 projects totaling $17.2 million. The overall expenditures through the second quarter are $7.4 million which is approximately 43% of the FY 2020 budget. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Mr. Martin’s report. Mr. Martin responded to questions and comments from the board.
c) FISCAL YEAR 2020 MID-YEAR STRATEGIC PLAN UPDATE Chief of Administration Adolfo Segura and Information Technology Manager Michael Kerr provided a mid-year report on the status of the District’s fiscal year
(FY) 2019-2022 Strategic Plan for FY 2020. Please reference the Committee Action notes attached to staff’s report (Attachment A) for the details of Messrs. Segura’s and Kerr’s reports. President Croucher encouraged the board to meet
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with staff to receive an in depth review of the District’s Strategic Plan program. The board had no questions.
REPORTS 15. GENERAL MANAGER’S REPORT General Manager Martinez presented information from his report which included an
update on the joint effort to acquire county-wide aerial images; new hires, promotions, and recruitments; voucher program for prescription safety glasses; capacity fee study; and the 870-2 pump station replacement project. He also reviewed a handout that was provided to each board member on the dais of a graph showing the sewage flows to the Metro system versus the District’s planned
capacity. He stated the graph will be included monthly in future general manager’s reports. 16. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Director Smith reported that CWA’s Engineering and Operations Departments provided a tour for MWD staff of the Lake Hodges Reservoir facility, Twin Oaks Valley Water Treatment Plant and the Pure Water Project. He stated as part of the tour, CWA’s head of operations highlighted to MWD’s staff a portion of a tunnel that only delivers water to San Diego and indicated CWA’s’ concern for that tunnel.
MWD’s staff, after the tour, decided to advance the project for the tunnel and included it in their upcoming 2-year CIP, allocating several million to the project. He also indicated that General Manager Watton was recognized at CWA’s last board meeting and he had introduced and passed the baton to the District’s new General Manager Martinez. Director Smith lastly shared with regard to estimating water
demands, that Otay WD is getting very good at estimating its customer water demands, however, CWA and MWD are about 10% to 15% too high. Both CWA and MWD are currently developing their Integrated Resources Plan which estimates water demand 25 years into the future. He stated that this plan is something the District should keep its eye on as it will have impact on the District if their estimates
are not accurate. Director Croucher additionally shared that he attended ACWA’s Washington DC legislative conference and was assigned the Head of ACWA’s Water Working Group. He stated that the San Diego Regional Chamber’s Binational Delegation
Outreach Trip to Mexico City and the SANDAG retreat was canceled due to the Coronavirus pandemic. He indicated that he was also scheduled to travel to Sacramento to meet with legislators. However, legislators are suggesting that the meetings be held by teleconference/video conference while they are in Sacramento. He stated that he has suggested that they stay in San Diego and they still can meet
via teleconference/video conference. He also shared that they had met with the farmers in Imperial County and they were very pleased with the work CWA is doing. He shared that it is remarkable what farmers are doing with technology to augment
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their soil to improve its quality to grow better fruits and vegetables and it was very humbling to learn and see what they are doing. He also indicated with regard to the lawsuits with MWD, that had CWA withdrawn two of the suits and Mayor Faulconer
and others have acknowledged and supported the action. He lastly invited the members of the board to attend CWA’s committee meeting which will be held the next day, March 12, at 1:30 p.m. The committee will discuss and receive a presentation on the regional conveyance project. This first phase of the project is to discuss the alignment, cost of the project, determine if the project is viable and if
there are any fatal flaws. If it is decided to move forward with the second phase of the project, at that time, they will discuss the possibility of public/private partnerships, grants and other funding that might be available. 17. DIRECTORS' REPORTS/REQUESTS
Director Robak shared that Helix WD and Sweetwater Authority received a grant from MWD to subsidize half the cost of the Flume for their customers in the form of rebates (a Flume is a $200 product that monitors water consumption and provides
real-time water usage data to your smartphone). He stated that he received one as
a social media influencer. He reported that he attended CSDA’s quarterly meeting and the San Diego Regional Chamber Leadership Delegation to Sacramento. He also shared that Mr. Jeff Keitlinger was retiring from MWD.
President Croucher stepped off the dais at 6:20 p.m. and returned at 6:23 p.m.
Director Gastelum indicated he forwarded his report to District Secretary Cruz, but he did wish to highlight from his report that he attended ACWA’s Washington DC legislative conference and it was refreshing to see that on the topic of California
water, Republican and Democratic representatives in Washington DC agree and
work together on this issue. Director Smith reported that he has submitted a written report to District Secretary Cruz as well, which will be attached to the minutes of this meeting.
Director Thompson stated that he also submitted his report to District Secretary Cruz which will be included with the minutes. He stated he did wish to share that the board introduced the District’s new General Manager Jose Martinez at the Chula Vista Chamber of Commerce Annual Installation and the Mexican American
Business Professional Association events. He stated he feels the District is doing a
good job in participating in the community to develop a good public perception of Otay WD. He thanked staff for following up on the Water Resiliency Plan. He lastly shared that the Chair of the South Government Affairs Committee of Pacific Southwest Association of Realtors successfully encouraged the City of El Cajon not
to include sewer billing charges on County property tax bills as it could impact home
buyers ability to get a loan as taxes are calculated into a buyers income ratios/residual income tests. The City of El Cajon estimated that the cost for the City to collect the sewer billing on their own was more than twice of what the Otay
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WD charges the City of Chula Vista for half the number of customers. He stated the City of Chula Vista was contemplating doing the same at one time and the District was able to discourage them as well. He stated that he feels the District is
providing a good public service by providing the sewer billing services for the City of Chula Vista which has helped their jurisdiction. Director Robak reported that the issue was also discussed at the East County Chamber of Commerce’s Government Affairs Committee and he had shared that
Otay WD provides the sewer billing services for the City of Chula Vista and Helix WD board members in attendance of the meeting, indicated that they would not be able to provide the billing services for the City of El Cajon. The City of El Cajon has not yet decided what they will do.
18. PRESIDENT’S REPORT President Croucher reported that he and new General Manager Martinez will be scheduling meetings with surrounding agencies (Helix WD, Padre MWD, Sweetwater Authority, etc.) to foster more interaction between the board presidents
and general managers to discuss and work on issues of mutual interest to the agencies. 19. CLOSED SESSION
The board recessed to closed session at 6:34 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION [GOVERNMENT CODE §54956.9] MARK COZIAHR, ET AL. vs. OTAY WATER DISTRICT, SAN DIEGO
COUNTY WATER AUTHORITY, ET AL.; CASE NO. 37-2015-00023413
b) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
KESSNER, ET AL. vs. CITY OF SANTA CLARA, ET AL.; CASE NO.
20CV364054, SANTA CLARA COUNTY SUPERIOR COURT c) 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 d) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
[GOVERNMENT CODE §54956.9]
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OTAY WATER DISTRICT vs. RAINBOW MUNICIPAL WATER DISTRICT; CASE NO. 37-2020-00001510-CU-WM-CTL
e) 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
20. 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 7:29 p.m. and General Counsel Dan
Shinoff reported that the board took no reportable actions in closed session. OTAY WATER DISTRICT FINANCING AUTHORITY
21. NO MATTERS TO DISCUSS
There were no items scheduled for discussion for the Otay Water District Financing Authority board.
22. ADJOURNMENT
With no further business to come before the Board, President Croucher adjourned the meeting at 7:30 p.m.
___________________________________ President
ATTEST:
District Secretary
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Board of Directors Meetings Attended Form
Director Name: Gary Croucher Period Covered:
From: 2/1/20 To: 2/29/20 Item No. Date Meeting Attended Description
1.
2/5/20 OWD Board Meeting OWD Regular Board Meeting
2.
2/12/20 Mexican American Bus Professional Assoc. Presented on Water Issues
3.
2/13/20 Committee Agenda Briefing Met w/ General Managers Watton and Martinez to review items that will be presented at the February committee meetings
4.
2/19/20 EO&WR Committee Reviewed and made recommendation on items that will be presented at the March 2020 board meeting.
Board of Directors Meetings Attended Form
Director Name:Mitchell Thompson Period Covered:
From: 2/1/20 To: 2/29/20
Item
No.
Date Meeting Attended Description
1.2/3/20 OWD Special Board Mtg See agenda
2.2/4/20 SCEDC Board Meeting Represent OWD at SCEDC Monthly Board Meeting
3.2/5/20 OWD Board Meeting See agenda, regular monthly board meeting
4.2/10/20 Quarterly Mtg with GM Discuss OWD issues and my district with new GM
5.2/12/20 MABPA monthly lunch
meeting
Community discussion about water issues in SD County
6.2/19/20 State of the County
Address
Represent OWD at County
7.2/20/20 CSDA Quarterly Dinner
Mtg
CSDA Agenda
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: 2/1/2020 To: 2/29/2020
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED
MILEAGE
HOME to OWD
OWD to HOME
MILEAGE
OTHER
LOCATIONS
1
2/3 OWD SPECIAL BOARD
MEETING
GM CANDIDATE INTERVIEWS 18
2 2/5 OWD MONTHLY MEETING 18
3 2/12 MEXICAN AMERICAN
BUSINESS POLITICAL ASSN
@ SAN DIEGO COUNTY WATER
AUTHORITY
44
4
2/13 QUARTERLY GM MEETING @OWD 18
5
2/18 COUNCIL OF WATER
UTILITIES MEETING
@BUTCHERS SHOP 44
6
2/18 CPRL&L COMMITTEE 18
7
2/19 STATE OF THE COUNTY
ADDRESS
@ MIDWAY MUSEUM 38
8
2/20 SAN DIEGO CSDA
QUARTERLY MEETING
@ BUTCHER SHOP 44
9 2/24 ACWA DC Conference Travel Day 40
10 2/24 ACWA DC Conference
11 2/24 ACWA DC Conference
12 2/24 ACWA DC Conference 40
13
2/28 CHULA VISTA CHAMBER OF
COMMERCE
93RD INSTALLATION DINNER 4
72 254
Total Meeting Per Diem:
1520.00
($152 per meeting)
326
Total Mileage Claimed: miles
Mark Robak
7014 From:2/1/2020 2/29/2020
ITEM DATE MEETING PURPOSE / ISSUES
MILEAGE HOME
TO OWD OWD TO
HOME
MILEAGE
OTHER
LOCATIONS
1 2/3/2020 OWD Special Board Meeting General Manager Candidate Interviews 0 12
2 2/3/2020 Otay Water District Active Shooter Training - No Charge 0 0
3 2/4/2020 South County EDC Meeting Monthly Meeting 0 28
4 2/5/2020 OWD Board Meeting OWD Monthly Board Meeting 4 6
5 2/6/2020 Metro JPA Meeting Discussed regional sewer system operation and
maintenance - No Charge 0 24
6 2/10/2020 East County Chamber of
Commerce
El Cajon Citizen of the Year Presentation - No
Charge 0 0
7 2/10/2020 Otay Water District Quarterly Meeting with old and new General
Manager's 0 12
8 2/12/2020 Meeting with Sweetwater Ad-
Hoc Committee
Discussed concepts of maximizing recycled
water reuse 0 6
9 2/18/2020 Council of Water Utilities Heard presentation on Water Innovation &
Efficiency in Agriculture - No Charge 0 0
10 2/18/2020 Finance & Administration
Committee
Discussed District finance and administration
items 0 12
11 2/20/2020 CSDA Quarterly Dinner LAFCO Special District Advisory Board
candidate presentations 0 26
12 2/25/2020 San Diego Regional
Chamber of Commerce 2020 Leadership Delegation to Sacramento 0 19
13 2/26/2020 San Diego Regional
Chamber of Commerce 2020 Leadership Delegation to Sacramento 0 19
14 2/28/2020 Chula Vista Chamber
Installation Dinner Annual Event - No Charge 0 0
4 164
$ 1,368
168 Miles
GM Receipt: Date: ___________________
FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $_____________
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