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HomeMy WebLinkAbout01-08-20 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT, OTAY SERVICE CORPORATION AND THE OTAY WATER DISTRICT FINANCING AUTHORITY January 8, 2020 1. The meeting was called to order by President Thompson at 3:33 p.m. 2. ROLL CALL Directors Present: Gastelum, Robak, Smith and Thompson Director Absent: Croucher (out-of-town on prescheduled vacation) Staff Present: General Manager Mark Watton, General Counsel Daniel Shinoff, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Operations Jose Martinez, Assistant Chief of Finance Kevin Koeppen, Assistant Chief of Engineering Dan Martin, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. PRESENTATION OF RECOGNITION PLAQUE TO BOARD PRESIDENT Vice President Robak presented a recognition plaque on behalf of the Board of Directors and staff to Board President Thompson in recognition of his service to the District as President of the Board in 2019. Vice President Robak thanked President Thompson for his leadership during the past calendar year. President Thompson thanked the board and staff for the recognition. 5. ELECTION OF BOARD PRESIDENT A motion was made by President Thompson, seconded by Director Smith and carried with the following vote: Ayes: Directors Robak, Smith and Thompson Noes: None Abstain: Director Gastelum Absent: Director Croucher to elect Director Croucher as President. 6. ELECTION OF VICE PRESIDENT 2 A motion was made by Director Thompson, seconded by Director Smith and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to elect Director Robak as Vice President. 7. ELECTION OF BOARD TREASURER A motion was made by Director Gastelum, seconded by Director Smith and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to elect Director Thompson as Treasurer. 8. APPROVAL OF AGENDA A motion was made by Director Thompson, and seconded by Director Smith and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the agenda with an amendment to delete item 22b, APPROVE THE NOVEMBER 26, 2019 PURCHASE AGREEMENT FOR $220,000 FOR THE BUENA VISTA AVENUE PROPERTY IN SPRING VALLEY AND AUTHORIZE THE GENERAL MANAGER TO ENTER INTO ESCROW TO COMPLETE THE SALE OF THE PROPERTY. 9. PRESENTATION OF RESOLUTION OF APPRECIATION TO OTAY WATER DISTRICT FOR THE YEARS OF ASSISTANCE AND COOPERATION LEADING TO THE IMPLEMENTATION OF THE “INTERAGENCY SHARED SERVICES PROGRAM” IN 1996 Mr. Brett Sanders, General Manager of Lakeside Water District (Lakeside WD), and Mr. Steve Johnson, President of the Lakeside WD board, presented a resolution of appreciation to the Otay WD. The resolution was adopted at their December 3, 2019 Board of Directors meeting to thank the Otay WD for the opportunities that have been established to collaborate through the Shared Services Program implemented in 1996 between five (5) east and south county 3 water agencies (Helix WD, Lakeside WD, Otay WD, Padre Dam MWD and Sweetwater Authority). 10. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF AUGUST 7, 2019 A motion was made by Director Smith, and seconded by Director Gastelum and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the minutes of the regular board meeting of August 7, 2019. 11. 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. 12. RECESS THE OTAY WATER DISTRICT BOARD MEETING AND CONVENE THE OTAY SERVICE CORPORATION BOARD MEETING Vice President Robak recessed the Otay Water District board meeting at 3:49 p.m. and convened the Otay Service Corporation board meeting. 13. ROLL CALL Directors Present: Gastelum, Robak, Smith and Thompson Director Absent: Director Croucher 14. ELECTION OF OFFICERS A motion was made by Director Thompson, seconded by Director Smith and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to elect Director Croucher as President, Director Robak as Vice President, and Director Thompson as Treasurer. 15. APPOINTMENT OF OFFICERS A motion was made by Director Gastelum, seconded by Director Thompson and carried with the following vote: 4 Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to appoint General Manager Mark Watton as Executive Director, Chief Financial Officer Joe Beachem as Chief Financial Officer, and District Secretary Susan Cruz as Secretary. 16. ADJOURN OTAY SERVICE CORPORATION BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING Vice President Robak adjourned the Otay Service Corporation board meeting at 3:50 p.m. and convened the Otay Water District Financing Authority board meeting. 17. ROLL CALL Directors Present: Gastelum, Robak, Smith and Thompson Director Absent: Director Croucher 18. APPOINT OFFICERS OF THE OTAY WATER DISTRICT FINANCING AUTHORITY A motion was made by Vice President Robak, seconded by Director Gastelum and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to appoint Director Croucher as President, Director Robak as Vice President, General Manager Watton as Executive Director, Chief Financial Officer Beachem as Treasurer/Auditor, and District Secretary Cruz as Secretary. 19. ADJOURN OTAY WATER DISTRICT FINANCING AUTHORITY BOARD MEETING AND CONVENE THE OTAY WATER DISTRICT BOARD MEETING Vice President Robak adjourned the Otay District Financing Authority board meeting at 3:51 p.m. and reconvened the Otay Water District board meeting. CONSENT CALENDAR 20. 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: 5 A motion was made by Director Thompson, seconded by Director Gastelum and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve the following consent calendar items: a) ADOPT RESOLUTION NO. 4374 REAPPOINTING DIRECTOR TIMOTHY SMITH AS THE OTAY WATER DISTRICT’S SECOND REPRESENTATIVE ON THE BOARD OF DIRECTORS OF THE SAN DIEGO COUNTY WATER AUTHORITY c) APPROVE A PURCHASE ORDER TO ALTEC INDUSTRIES IN AN AMOUNT NOT-TO-EXCEED $122,112.40 FOR THE PURCHASE OF ONE (1) CLASS 5 FORD F-550 TRUCK WITH UTILITY BODY AND ALTEC AT40G FORTY-FIVE (45) FOOT PERSONAL BUCKET LIFT ACTION ITEMS 21. FINANCE AND ADMINISTRATION a) APPROVE AN ENGAGEMENT LETTER WITH THE AUDITING FIRM OF TEAMAN, RAMIREZ AND SMITH, INC., TO PROVIDE AUDIT SERVICES TO THE DISTRICT FOR THE FISCAL YEAR ENDING JUNE 30, 2020 Senior Accountant Marissa Dychitan requested that the board approve an engagement letter with the auditing firm of Teaman, Ramirez & Smith, Inc. (TRS), to provide audit services for the fiscal year ending June 30, 2020. Ms. Dychitan also introduced Mr. Joshua Calhoun of TRS who will be the partner-in-charge of the District’s FY 2020 audit. Please reference Attachment A (Committee Action) to the staff report for the details of Ms. Dychitan’s and Mr. Calhoun’s presentations. A motion was made by Director Thompson, seconded by Director Gastelum and carried with the following vote: Ayes: Directors, Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendation. b) AWARD A CONTRACT TO WESTERN AV IN AN AMOUNT NOT-TO-EXCEED $153,142.34 FOR THE DISTRICT’S BOARDROOM AUDIO-VISUAL UPGRADE PROJECT 6 Information Technology Manager Michael Kerr requested that the Board approve a contract with Western AV for the District’s Boardroom Audio-Visual Upgrade Project. He reviewed the changes to the boardroom that the project would entail and stated that the project would commence in March following the board meeting and take approximately one month to complete. During construction, meetings would be held in the District’s training room. Staff indicated, in response to an inquiry from the board, that a consultant, Sedona, was engaged by staff to conduct a needs assessment based on their expertise and several site visits. They also provided guidance on specifications and estimated cost for the project. In response to another inquiry from the board, staff indicated that the system is not failing, however, the technology is no longer supported and in the event the system fails, there would be no available parts to repair the system. A motion was made by Director Thompson, seconded by Director Smith and carried with the following vote: Ayes: Directors Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: Director Croucher to approve staff’s recommendation. 22. BOARD a) ADOPT RESOLUTION NO. 4375 AMENDING SECTION 6, DIRECTOR’S RESPONSIBILITY, OF THE BOARD OF DIRECTORS POLICY NO. 8, DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS, WITH REGARD TO THE REPORTING OF MEETINGS ATTENDED AT THE EXPENSE OF THE DISTRICT AT THE NEXT REGULAR MEETING OF THE BOARD OF DIRECTORS AS REQUIRED BY STATE STATUTE [GOVERNMENT CODE SECTION 53232.3 (d)] General Manager Watton indicated that there have been discussions at previous board meetings regarding the requirements under the State law for Directors to report meetings that they have attended. He stated the proposed amendments to Board of Directors Policy 8 clarifies the reporting requirements per State statute. In response to an inquiry from the board, District Secretary Cruz indicated the statute requires that members of the board report the meetings they have attended at the expense of the District at the next regular board meeting. The adoption of Resolution No. 4375 amends Board of Directors Policy 8 to include statutory language to correspond with the requirements of the law. A motion was made by Director Smith, seconded by Director Robak and carried with the following vote: Ayes: Directors Gastelum, Robak, Smith and Thompson 7 Noes: None Abstain: None Absent: Director Croucher to approve staff’s recommendation. b) DISCUSSION OF THE 2019 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. REPORTS 23. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report that included updates regarding employees attendance of the Supervisor, Management and Leadership Academy, Cal-Card rebate program, Sewer Cost-of-Service Study, fiscal year 2021 budget, 2019 Wastewater Bond Issuance, Campo Road Sewer Replacement Project, Vista Vereda and Hidden Mesa Water Pipelines Replacement Project, and water purchases and sales. General Manager Watton and staff responded to comments and inquiries from the board. 24. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA adopted, at its combined November and December 2019 Board of Directors meeting, a separate lower agricultural rate for certain customers with the understanding that they must accept lower reliability. The lowered agricultural rate was previously adopted as a temporary rate and it is now a permanent rate which will affect many of the northern water agencies. He also shared that the repair of the leak on Pipeline 4 was completed and the total cost was approximately $4 million. He noted another item CWA’s board discussed was Polyfluoroalkyl Substances (PFAS) contaminates in the water. He stated that PFAS contaminants do not have a big impact in the County of San Diego as our region does not have much groundwater supplies. However, the County could be indirectly impacted through supplies received from MWD and their Los Angeles member agencies as many have groundwater supplies. He shared that Ms. Sandy Kerl was appointed the new General Manager of CWA. Ms. Kerl was acting in the role for a little over a year and he felt she was an excellent fit and would work out well. He lastly shared that CWA received a California State Law Section 998 offer from MWD on the lawsuit between the two agencies and CWA took no action on the offer at a Special CWA meeting held on December 19, 2019. 25. DIRECTORS' REPORTS/REQUESTS Director Smith apologized that he was unable to attend the District’s employee holiday event as his son was sick. Director Thompson also stated that he was unable to attend the District’s employee holiday event as he too was sick. He reported that in December he 8 attended the Finance and Administration Committee, the Ad Hoc General Manager Recruitment Committee, and the Colorado River Water Users Association (CRWUA) conference. Director Gastelum reported that he attended the Association of California Water Agencies (ACWA) fall conference, the CRWUA conference, and completed AB1234 Ethics training. He also shared that he attended and enjoyed the employee holiday event. 26. VICE PRESIDENT’S REPORT Vice President Robak reported that he attended the ACWA fall conference as well. He shared that a Los Angeles television station had incorrectly reported that it was illegal to take a shower and do laundry at the same time due to new legislation adopted by the State of California that would become effective January 2, 2020. He stated that ACWA had clarified the conservation mandates and stated the report was untrue. 27. CLOSED SESSION The board recessed to closed session at 5:06 p.m. to discuss the following matters: a) PUBLIC EMPLOYMENT [GOVERNMENT CODE §54957] TITLE: GENERAL MANAGER b) 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 c) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] OTAY WATER DISTRICT v. CITY OF SAN DIEGO; CASE NO. 37-2017-00019348-CU-WM-CTL d) CONFERENCE WITH LEGAL COUNSEL – POTENTIAL [GOVERNMENT CODE §54956.9] 4 CASES The board reconvened from closed session at 6:34 p.m. General Counsel Dan Shinoff reported, under Government Code Section 54956.9, Conference with Legal Counsel regarding potential litigation, that a motion was made by Director Smith, seconded by Director Thompson, to proceed with the filing of a Petition for Writ of Mandate with the following vote: 9 Ayes: Directors Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher General Counsel Shinoff also reported that on a motion by Director Robak, seconded by Dir Thompson, that the board denied, by operation of law, the claim filed by Ms. Michelle Sites and Mr. Adrian Romanyszyn with the following vote: Ayes: Directors Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher General Counsel Shinoff lastly reported that on a motion by Director Robak, seconded by Director Thompson, that the board rejected the claims filed by Mr. Francisco Montes de Oca and Ms. Charlotte Najor with the following vote: Ayes: Directors Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher There were no other reportable actions taken by the board. 28. ADJOURNMENT With no further business to come before the Board, Vice President Robak adjourned the meeting at 6:36 p.m. ___________________________________ President ATTEST: District Secretary