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Home My WebLink About10-02-19 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY October 2, 2019 1. The meeting was called to order by President Thompson at 3:32 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Director Absent: None Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Chief of Operations Pedro Porras, Asst. Chief of Engineering, Dan Martin, Asst. Chief of Operations Jose Martinez, District Secretary Susan Cruz and others per attached list. 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF AGENDA A motion was made by Director Croucher, 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 MEETING OF JUNE 5, 2019 A motion was made by Director Croucher, seconded by Director Smith and carried with the following vote: Ayes: Directors Gastelum, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Croucher 2 to approve the minutes of the regular meeting of June 5, 2019. 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 Croucher, 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 following consent calendar items: a) AWARD A CONTRACT TO D & H WATER SYSTEMS, INC., FOR A PAX SYSTEM AT THE 803-4 RESERVOIR IN AN AMOUNT NOT-TO-EXCEED $298,308 b) APPROVE AN AGREEMENT WITH SUN LIFE FOR UP TO THREE YEARS (FROM JANUARY 1, 2020 THROUGH DECEMBER 31, 2022) AT AN APPROXIMATE COST OF $80,000 PER YEAR TO CONTINUE TO PROVIDE LIFE; ACCIDENTAL, DEATH AND DISMEMBERMENT; AND SHORT/LONG TERM DISABILITY INSURANCE c) ADOPT RESOLUTION NO. 4371 APPROVING THE AMENDMENTS TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY AND OTAY WATER DISTRICT FOR THE HEALTH BENEFITS PROGRAM ACTION ITEMS 8. BOARD a) DISCUSS THE 2019 BOARD MEETING CALENDAR It was discussed that the meeting in December will be canceled. 3 A motion was made by Director Croucher, 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 cancel the District’s December 2019 board meeting. INFORMATIONAL ITEMS 9. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: b) FISCAL YEAR 2019 DIRECTORS’ EXPENSES Senior Accountant Julia Yang presented the Board of Directors expenses for fiscal year 2019. She indicated that per Government Code Section 53065.5, special districts are required, at least annually, to disclose the expenses of the Board of Directors. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Ms. Yang’s report. There was discussion regarding the requirement for the reporting of meetings board members attended at the expense of the District and if this annual report fulfills the State Statute reporting requirements. District Secretary Cruz indicated she believes State Statute requires members of the board to report on meetings they attended at the next regular meeting of the board. General Counsel Shinoff indicated that State Statute (53065.5) indicates that each Special District shall, at least annually, disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or products received. It was discussed, considering State Statute 53065.5, that board members will not be required to report on the meetings they attended at each board meeting. However, it was suggested that members of the board should share (during the Directors Reports portion of the meeting) information from meetings they attended that would be of interest to members of the board. REPORTS 10. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on security improvements in the lobby, the America’s Water Infrastructure Act of 2018, the 2019 annual fiscal year-end audit, the 2019 sewer debt, the change in the District’s rate plan with SDG&E for the Steele Canyon Lift Station, water deliveries to Mexico, and water sales and purchases. 4 The board suggested that the active shooter training program, that was provided to staff members, also be provided to the board. It was indicated that a training session would be set up. Staff responded to additional questions and comments from the board. 11. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher shared copies of Guidelines for Sustainable Landscapes from CWA. Director Smith reported that CWA performed a 2019 Public Opinion Survey. He stated that some of the results showed that the public is focused on long term reliability, but what they found interesting from the survey is that water is no longer the top priority on the community’s mind. The top priority is now homelessness. He indicated that the full survey results are available on CWA’s website. He shared that the annual report for the Carlsbad Desalination Plant indicated that the cost to process water at the plant is $2685 per acre foot. He also stated that the emergency repair to Pipeline 4 in the northern part of the County will soon be completed. He lastly shared that a question was asked at a monthly East County member agency meeting (East County Caucus) regarding fixed and variable costs and revenues. Director Smith asked that staff provide an informational report on the District’s fixed and variable revenues. He additionally asked that staff request CWA to provide the same information at a District board meeting. The board also suggested when the two-year study for the Conveyance Pipeline, along with the three different alternatives being considered is completed, that a presentation on the results of the study be provided by CWA as well. 12. DIRECTORS' REPORTS/REQUESTS Director Robak indicated that he attended the San Diego Regional Chamber of Commerce’s Mission to Washington, DC. He presented a powerpoint that provided an overview of the mission. He stated they discussed the cross-border sewage issue in the South Bay area, the City of San Diego’s Pure Water Project, and Mr. Jim Madaffer, Chairman of CWA, provided an update on San Diego water issues (see attached copy of presentation). He noted that the attendees from San Diego included San Diego Mayor Kevin Faulconer and Imperial Beach Mayor Serge Dedina. Director Gastelum indicated he attended the WateReuse Symposium which was held in San Diego last month. He stated he also attended the South County Economic Development Council’s annual economic summit and the ACWA Legislative Forum. 5 13. PRESIDENT’S REPORT President Thompson reported on meetings he attended last month. His report is attached. He noted that he and Director Gastelum met with the new Executive Director, Jennifer Pillsbury, of the Water Conservation Garden (WCG). He stated that she is a very dynamic person who he hopes will have a positive impact to moving the Water Conservation Garden towards self-sufficiency. RECESS TO CLOSED SESSION 14. CLOSED SESSION General Manager Watton indicated that there was nothing new to report on the Blastco matter. He stated with regard to the City of San Diego matter, a briefing was provided to members of the board and asked if there was interest by the board in discussing the brief. He stated a closed session discussion would be convened if there was interest. There was no request to discuss the brief. Director Smith inquired when the next update would occur for the City of San Diego matter. Attorney Jeanne Blumenfeld indicated that the City of San Diego would be filing an opposition brief on October 25, 2019 and an update for the board would be provided at the November board meeting. The board waived closed session discussion of the following matters: a) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9] 1 CASE (BLASTCO) b) 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 OTAY WATER DISTRICT FINANCING AUTHORITY 15. NO MATTERS TO DISCUSS There were no items scheduled for discussion for the Otay Water District Financing Authority board. 6 16. ADJOURNMENT With no further business to come before the Board, President Thompson adjourned the meeting at 4:34 p.m. ___________________________________ President ATTEST: District Secretary 7 President’s Report Mitch Thompson October 2, 2019 Board Meeting # Date Meeting Purpose 1 3-Sep SCEDC Board Meeting Represented the District at their Monthly Meeting 2 4-Sep OWD Regular Board Meeting Monthly Board Meeting 3 5-Sep Meeting w/ WCG Executive Director Jennifer Pillsbury Discussed matters related to the Water Conservation Garden 4 6-Sep OWD Employee Event Attended employee event (Padre's game) 5 13-Sep SCEDC 29th Annual Economic Summit Received an update on the status of the economy 6 18-Sep OWD Finance and Administration Committee Reviewed items that will be presented at the October board meeting 7 20-Sep ACWA Region 8 Legislative Forum Received an update on legislation