HomeMy WebLinkAbout08-07-19 Board Minutes 1
MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY
August 7, 2019
1. The meeting was called to order by President Thompson at 3:31 p.m. 2. ROLL CALL
Directors Present: Gastelum, Robak, Smith and Thompson Director Absent: Croucher (due to a work-related commitment)
Staff Present: General Manager Mark Watton, 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 Keoppen, Asst. Chief
of Operations Jose Martinez, District Secretary Susan Cruz
and others per attached list. 3. APPROVAL OF AGENDA
A motion was made by President 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 amend the agenda to include a moment of silence following the pledge of allegiance.
4. PLEDGE OF ALLEGIANCE A moment of silence was held following the pledge of allegiance to honor the victims of shooting massacres that occurred in El Paso, Texas on August 3, 2019
and in Dayton, Ohio on August 4, 2019.
5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF MAY 1, 2019 AND SPECIAL BOARD MEETING OF MAY 2, 2019
A motion was made by Director Smith, seconded by Director Gastelum and carried
with the following vote: Ayes: Directors Gastelum, Robak, Smith and Thompson
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Noes: None
Abstain: None Absent: Director Croucher to approve the minutes of the regular meetings of May 1, 2019 and special meeting
of May 2, 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 Robak, 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 following consent calendar items: a) ADOPT RESOLUTION NO. 4369 TO INDEMNIFY THE BOARD OF
DIRECTORS, GENERAL MANAGER, AND DEFERRED COMPENSATION
COMMITTEE MEMBERS AGAINST LIABILITY, LOSS, DAMAGE OR EXPENSE RESULTING FROM ANY ACT OR OMISSION IN THEIR OFFICIAL CAPACITIES IN THE ADMINISTRATION OF THE 401(a) AND 457(b) DEFERRED COMPENSATION PLANS, EXCLUDING WILLFUL
MISCONDUCT
b) ADOPT RESOLUTION NO. 4368 TO CAST THE DISTRICT’S VOTE ON UP TO THREE (3) CANDIDATES FOR THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY’S BOARD OF DIRECTORS
ACTION ITEMS 8. BOARD
a) REVIEW THE EVALUATON OF VARIOUS TIMING AND STRUCTURES OF
SEWER DEBT; AND OBTAIN APPROVAL FROM THE BOARD TO PROCEED WITH ISSUING SEWER DEBT IN ACCORDANCE WITH THE RECOMMENDED TIMELINE AND STRUCTURE (KOEPPEN)
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Assistant Chief of Finance Kevin Koeppen presented the evaluation of the various timing and structures for the proposed sewer debt and requested the board’s approval to continue the process of issuing the debt in accordance with the District’s Financial Advisor, Ms. Suzanne Harrell of Harrell and Company Advisors LLC,
recommended timeline and structure. Please reference the Committee Action notes
(Attachment A) attached to the staff report for the details of Mr. Keoppen’s and Ms. Harrell’s report. Mr. Keoppen indicated in response to an inquiry from the board that the first $3 million of debt would be issued in three (3) to six (6) months. It was indicated that today, the projected interest rate for the debt issuance would be
approximately 2.5% (which includes all costs) with a ¼% increase built in as the
next issuance of $3 million is two years away. The cost difference to do two separate debt issuances of $3 million each versus one issuance of $6 million is approximately $55,000 ($212,000 versus $157,000) [reference page 4 of the staff report on why staff does not recommend one issuance of $6 million]. Staff
responded to additional questions and comments from the board.
A motion was made by Director 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 approve staff recommendation.
PRESENTATION OF AWARDS 9. PRESENTATION OF AWARDS FOR THE “WATER IS LIFE” STUDENT (GRADES
K-6) POSTER CONTEST AWARDS (OTERO)
Communications Officer Tenille Otero indicated that this year the District relaunched its “Water is Life” student poster contest. The contest offers an opportunity for students to showcase their creativity in reflecting the theme of the importance of
using water as efficiently as possible. Student from kindergarten through sixth
grade, who attend a school located within the District’s service area, were asked to submit a poster depicting the theme “Water is Life.” A total of 247 students participated in the poster contest. First, second and third prize winners were selected from kindergarten to third grades and forth to sixth grade. The artwork was
selected based on originality and for best reflecting the theme of water conservation
and stewardship. The winners were recognized by the District: Kindergarten to 3rd Grade:
1st place: Jeeanna Mendoza, 3rd grade, Camarena Elementary
2nd place: Amerie Constantino, 1st grade, Wolf Canyon Elementary 3rd place: Miguel-Angel Gonzalez, 2nd grade, Wolf Canyon Elementary
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4th to 6th Grade:
1st place: Maya Santana, 5th grade, Wolf Canyon Elementary 2nd place: Malayiah Williams, 5th grade, Wolf Canyon Elementary 3rd place: Rin Smith, 5th grade, Wolf Canyon Elementary
The students were awarded a framed certificate, a gift card, an art kit and an Otay Water District bag of promotional items. The first-place winners also received a pizza party for their entire class.
The top five posters will be submitted to Metropolitan Water District’s (MWD)
student art contest where 36 posters will be selected from all regional entries (from throughout Southern California) and included in their 2020 calendar. Winners will be announced in September.
ACTION ITEMS
10. BOARD b) DISCUSS THE 2019 BOARD MEETING CALENDAR
There were no changes to the board meeting calendar. REPORTS
11. GENERAL MANAGER’S REPORT
General Manager Watton shared that CWA’s pipeline four (4) is leaking near Rainbow MWD. The pipeline serves the retail water agencies from the North County to Otay WD. CWA will be formulating a plan to locate and fix the leak
allowing member agencies time to prepare for the shutdown of the pipeline for
repairs. He stated that Otay WD has built in redundancies and he does not anticipate any issues with water services to the District’s customers during the pipeline shutdown for repairs. He also presented information from his report which included an update on the District implementing a paving log app and web
application, the mailing of rate increase notices, the Campo Road Sewer
Replacement project, the Vista Vereda and Hidden Mesa water pipeline replacement project, CWA receiving a notice of violation from the Division of Drinking Water, staff meeting with sister agencies to discuss shared services, the leak detection program, and water sales and purchases. Staff responded to
questions and comments from the board.
12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith shared that CWA has saved $1 to $2 million on a $15 million contract
for the Flow Control Facility power generation project due to the current bidding
environment and staff splitting the work on the project to coincide with specific contract work. He also indicated that the $25 million Pipeline Five Pre-lining Project came in under budget and within schedule. The project had a -2% change
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order rate which saved CWA approximately $550,000. He noted that CWA
approved their budget and rate increases last month. The board also formed a new ad hoc committee titled, Fiscal Sustainability Ad Hoc Committee. The Committee will review member agencies’ developing their own water supplies and how it will impact CWA fiscally in the future.
He reported with regard to MWD that they updated their Bay Delta Policy concerning the Bay Delta Conveyance Project to support Governor Newsome’s portfolio approach (a water supply solution that includes a number of smaller water projects versus one large water project). MWD also issued another $200 million in
debt for CIP projects. They approved the LRP for the Santa Margarita River
Conjunctive Use Project that will permit the use of existing groundwater up to its allowable yield. This is the first project approved since the courts ruled that it was illegal for MWD to prevent any water authority agency from receiving funding.
13. DIRECTORS' REPORTS/REQUESTS
Director Smith reported that last month he attended the District’s regular board meeting, the East County Caucus meeting, the CWA matters meeting, and the District’s Desalination Project Committee meeting.
Director Gastelum indicated last month he attended an Association of California Water Agencies (ACWA) workshop on the Human Right to Water and Water
Agency Collaboration to Achieve the Goal, the introduction of the Chula Vista Elementary School District Hydrostation Program at Sweetwater Authority, the San
Diego County Water Resilience Portfolio event, and CWA’s Legislative Roundtable
with Senator Brian Jones. Director Robak shared that he saw in the news that the FBI had raided the Los Angeles Department of Water and Power headquarters.on July 22, 2019. He stated
that it is the largest utility in the United States. He further shared that he had also
attended the Chula Vista Elementary School District Hydrostation Program introduction at Sweetwater Authority and he presented a powerpoint on Mr. Fritz Roll whom the District’s Roll Reservoir (also known as the 571-1 Reservoir) is named after. He indicated that Mr. Roll was one of the founders of the Otay WD in
1956. Mr. Roll drilled the first water well in the Otay Mesa area and farmers in the
region raised the first irrigated crops of celery and tomatoes during that time. 14. PRESIDENT’S REPORT
President Thompson reported on meetings he attended last month. His report is
attached. RECESS TO CLOSED SESSION
15. CLOSED SESSION
The board recessed to closed session at 5:03 p.m. to discuss the following matters:
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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 – POTENTIAL [GOVERNMENT
CODE §54956.9]
2 CASES c) PUBLIC EMPLOYEE PERFORMANCE EVALUATION [GOVERNMENT
CODE §54957.6]
TITLE: GENERAL MANAGER
RETURN TO OPEN SESSION 2. 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 7:39 p.m. General Counsel Dan Shinoff indicated that the board took action in closed session with regard to item 16b above. A claim was submitted to the District with an application for late claim relief.
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 deny the application for late claim relief.
General Counsel Shinoff presented item 16c above for board action. 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 extending the term of the General Manager’s agreement one year to June 30, 2021 and to provide a Cost-of-Living Adjustment (COLA) increase of
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2.95% (the same COLA provided to the District’s staff) increasing the General
Manager’s base salary to $247,749 per year effective July 8, 2019. The board thanked General Manager Watton and indicated that they looked forward to working with him for another two years or longer.
OTAY WATER DISTRICT FINANCING AUTHORITY 16. NO MATTERS TO DISCUSS
There were no items scheduled for discussion for the Otay Water District Financing
Authority board. 17. ADJOURNMENT
With no further business to come before the Board, President Thompson adjourned
the meeting at 7:42 p.m.
___________________________________ President ATTEST:
District Secretary
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President’s Report
Mitch Thompson
August 7, 2019
Board Meeting
# Date Meeting Purpose
1 2-Jul SCEDC Board Meeting Represented the District at their Monthly
Meeting
2 3-Jul OWD Regular Board Meeting Monthly Board Meeting
3 15-Jul Desalination Project Committee
Meeting
Discussed status of the Rosarito
Desalination Plant Project.
4 15-Jul Committee Agenda Briefing
Met w/ General Manager Watton to
review items that will be presented at the
July committee meetings
5 16-Jul Ad Hoc GM Evaluation Committee Discussed the GM Evaluation process.
6 18-Jul Water Conservation Garden JPA
Board Meeting
Water Conservation Garden Regular
Board Meeting.
7 19-Jul San Diego County's Water
Resilience Portfolio
Discussed the region's water portfolio
planning.
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13 30-May
Met with Director Croucher,
General Manager Watton & CWA
representative Madaffer
Discussed CWA matters
14 31-May Board Agenda Briefing
Met with General Manager Watton and
General Counsel Shinoff to review items
that will be presented at the June Board
Meeting