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HomeMy WebLinkAbout07-03-19 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY July 3, 2019 1. The meeting was called to order by President Thompson at 3:34 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum, Robak, Smith and Thompson Staff Present: General Manager Mark Watton, Attorney Jeanne Blumenfeld, Chief of Engineering Rod Posada, Chief Financial Officer Joe Beachem, Chief of Administration Adolfo Segura, Asst. Chief of Engineering, Dan Martin, Asst. Chief of Operations Jose Martinez, 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 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 agenda. 5. PRESENTATION OF THE WATERSMART LANDSCAPE CONTEST “BEST IN DISTRICT” AWARD TO BOB AND SHAN CISSELL Director Robak presented this year’s WaterSmart Landscape Contest award for, Best in District, to Bob and Shan Cissell of La Mesa. He stated that Mr. & Mrs. Cissell indicated that they drew a lot of their inspiration for their landscape project from the Water Conservation Garden (WCG) located on the campus of Cuyamaca College in El Cajon. They converted 2500 square feet of grass into a water efficient landscape which has decreased its water use by an average of 33% and has reduced their water bill by 25% to 30%. They were presented with a certificate of recognition, a gift card for $250 to a Garden Nursery of their choice, and a bag of gardening tools. Ms. Cissell thanked the District for the award. She shared that her husband took a gardening class at the WCG where he was inspired to develop a plan to convert their landscape to a low water use landscape. He implemented his plan himself and 2 repurposed items in their garden. For example, the roots that were growing underground in pipes in their yard were used in the arches in the pergola. She stated that the conversion of their garden is still ongoing. 6. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF APRIL 3, 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 to approve the minutes of the regular meeting of April 3, 2019. 7. 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. President Thompson presented a certificate of recognition to General Manager Watton. He thanked him for his fifteen (15) years of dedicated service to the District and each member of the board thanked General Manager Watton for his service and leadership to the District. CONSENT CALENDAR 8. 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 Smith, and seconded by Director Croucher 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) APPROVE AN INCREASE TO THE CIP P2619 BUDGET IN THE AMOUNT OF $300,000 AND AWARD A CONSTRUCTION CONTRACT TO THARSOS, INC. FOR THE TEMPORARY LOWER OTAY PUMP STATION REDUNDANCY PROJECT IN AN AMOUNT NOT-TO-EXCEED $1,647,000 3 b) APPROVE THE ISSUANCE OF A PURCHASE ORDER TO CORTECH ENGINEERING FOR THE PURCHASE OF A PORTABLE TRAILER MOUNTED VARIABLE FREQUENCY DRIVE PUMP IN AN AMOUNT NOT-TO-EXCEED $453,000 ACTION ITEMS 9. BOARD a) DISCUSSION OF 2019 BOARD MEETING CALENDAR There were no changes to the board meeting calendar. INFORMATIONAL ITEMS 10. THIS ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM. a) CONSERVATION PROGRAM UPDATE Communications Officer Tenille Otero reviewed the various conservation programs and services offered through the District, the San Diego County Water Authority (CWA) and the Metropolitan Water District of Southern California (MWD). Please reference attachment A to the staff report for the details of Ms. Otero’s presentation. Director Smith indicated that MWD noted that disadvantaged communities throughout the MWD service area were not taking advantage of the rebate for low-flush toilet replacement. MWD decided to provide a new program which provides a $250 incentive for toilet replacement specifically for those disadvantaged based on income. He stated that all the rebate vouchers were spoken for within 18 minutes of being posted on MWD’s website. There was discussion that disadvantaged homeowners did not receive the benefit of the rebates which was the objective of the new program. The rebates, instead, went to apartment owners in disadvantaged communities. It was suggested that possibly a recommendation for a policy change can be proposed to MWD to reserve such rebates for low income homeowner occupants in the first 60-days of posting (with a limit per person) to allow homeowner occupants an opportunity to take advantage of the vouchers. It was noted that the rebate vouchers were utilized by several disadvantaged communities in San Diego. The Otay WD service area does not have communities that would qualify as disadvantaged. REPORTS 11. GENERAL MANAGER’S REPORT General Manager Watton reviewed handouts that were provided on the dais for each member of the board (see attached). He also presented information from his report which included an update on the financial advisor/consultant for the deferred compensation plan, deferred compensation plan review, security enhancements to 4 customer services, public services conference room and lobby areas, City of Chula Vista sewer billing, and water sales and purchase. Staff responded to comments and questions from the board. 12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Smith reported that CWA approved their budget of $1.687 billion for fiscal years 2020-2021. He stated the rate increase for untreated water has been determined to be 4.8% and the increase for treated water will be 4.3%. CWA utilized $38 million from their rate stabilization fund which reduced the water rate increase by $95/acre foot. He also shared that CWA will not need to purchase carbon credits and that CWA does sell its carbon credits because of its hydro facility in Rancho Penasquitos. He indicated with regard to MWD that the focus is no longer on the WaterFix project, but on Governor Newsom’s Water Portfolio Plan. He stated that the plan is a big change in the State’s water future and each of the agencies are reviewing their water resources plans and he feels that CWA is ahead in this area. He stated that they have also selected an Ethics Officer and have updated all their ethics policies. Lastly, he reported on the possibility of member agencies utilizing MWD’s pipes during an emergency to transport water to another member agency when there are waterline breaks from natural disasters. It was discussed that this is something that is usually accomplished through agreements. Some agencies are hesitant in doing this because of liability and water quality issues, but it is something that should be discussed. Director Croucher added to the CWA report that settlement discussions with MWD are continuing and that they have received a thirty-day extension. He stated that CWA hosted an event celebrating their 75th Anniversary and there will be continued highlights of this milestone throughout the year. He stated that CWA will be meeting with California Governor Newsom’s office to discuss his Water Portfolio Plan and shared that AB1588, a bill sponsored by Otay WD and CWA to provide Veterans credit for their military experience and education towards water industry certification requirements, has cleared MWD’s objections. He noted that the proposed legislation on the water tax has failed once again, but there are still legislators who are supportive of implementing some type of tax. He reported that CWA’s AAA financial rating has been reaffirmed by Standard & Poor’s and lastly shared that the recruitment process for a new CWA general manager is ongoing and Avery and Associates has been engaged to assist with the recruitment process. 13. DIRECTORS' REPORTS/REQUESTS Director Smith indicated that he attended the District’s regular board meeting, the Engineering Operations & Water Resources Committee, and the East County Caucus meeting. Director Croucher stepped off the dais at 5:04 p.m. and Director Smith exited the meeting at 5:06 p.m. 5 Director Gastelum reported that he attended the Albondigas monthly meeting, Chula Vista Chamber of Commerce meeting where they discussed utilities, Council of Water Utilities meeting and his regular District meetings. Director Croucher stepped back on the dais at 5:07 p.m. Director Robak indicated that he attended the South County Albondigas meeting where CWA board chair, Mr. Jim Madaffer, spoke about the proposed North Pipeline Project. He also shared that he attended CWA’s 75th Anniversary Celebration where he had the opportunity to speak with Ms. Amy Chen, MWD’s representative at CWA. He indicated that he listened to a CWA committee meeting online and he heard Otay WD Director Smith, who is a member of the committee, asking some very good questions. 14. PRESIDENT’S REPORT President Thompson’s report is attached. He also shared that the General Managers and Presidents of the south agencies meet periodically, and he has asked General Manager Watton if he could invite a CWA representative to present information on the Imperial Valley Pipeline to this group. He lastly shared that one of the roles of the board is to perform the General Manager’s evaluation. He stated that he has started that process and that the board should be receiving the evaluation materials in the next few days. 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. 16. ADJOURNMENT With no further business to come before the Board, President Thompson adjourned the meeting at 5:26 p.m. ___________________________________ President ATTEST: District Secretary 6 President’s Report Mitch Thompson July 3, 2019 Board Meeting # Date Meeting Purpose 1 4-Jun SCEDC Board Meeting Represented the District at their Monthly Meeting 2 5-Jun OWD Regular Board Meeting Monthly Board Meeting 3 14-Jun Committee Agenda Briefing Met w/ General Manager Watton to review items that will be presented at the June committee meetings 4 20-Jun Mexican American Business Professionals Association Monthly Meeting Represented the District at the monthly meeting 5 21-Jun Otay Mesa Chamber Member Breakfast Provided a presentation on Otay Water District and AB1588 6 26-Jun Chula Vista Chamber Infrastructure Committee Meeting Represented the District at the meeting 7 27-Jun Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the July Board Meeting