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HomeMy WebLinkAbout04-03-19 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETINGS OF THE OTAY WATER DISTRICT AND OTAY WATER DISTRICT FINANCING AUTHORITY April 3, 2019 1. The meeting was called to order by President Thompson at 3:34 p.m. 2. ROLL CALL Directors Present: Croucher, Gastelum (arrived at 3:35 p.m.), 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, 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 Robak, seconded by Director Smith and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: None Abstain: None Absent: Director Gastelum to approve the agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF NOVEMBER 7, 2018 A motion was made by Director Robak, 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 minutes of the regular board meeting of November 7, 2018. 2 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. INFORMATIONAL ITEM 7. THE FOLLOWING ITEM IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEM: a) PRESENTATION OF 2019 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY Mr. Alan Nevin, Director of Economic and Market Research of Xpera Group, provided an overview of the economic outlook for the world, the United States and San Diego County. He indicated that the world economy is moving in a positive direction and that much of the growth is taking place in emerging markets and this trend will continue. Mr. Nevin indicted that the United States GDP is growing, but not at the same rate as it was growing during the economic recovery. The GDP is increasing 3% and the rate of inflation is remaining low at 2%. He stated that he did not see this changing soon, and that this is positive for the economy. He indicated the employment market in the United States is still doing well with a couple million jobs added each year and unemployment remaining under 4%. It is expected that this will continue through 2020 as well. He stated that California is the world’s 6th largest economy and it will gain over 300,000 jobs in 2019 and he felt this trend would continue. He noted that California has the highest spending rate on research and development ($1.2 million per 100,000 persons) of all the states in the Union. Building in California is good with more than 100,000 units being built each year and non-residential permits are up for the 7th straight year and this is also expected to continue through 2020. San Diego County’s population continues to add 25,000+ persons annually and it will add another 250,000 persons by 2030. The County represents 10% of the State’s population and employment is continuing to grow with the County’s unemployment rate under 4%. The unemployment rate is expected to continue to decline. He noted that the County has 8 to 9 economic drivers where most metropolitan areas only have 2 economic drivers. This provides for San Diego to have a very stable employment base. He presented the number of residential development projections for the Otay Water District service area. He noted that it is estimated that in 2019 another 10,000 residential units will be built. Much of the units will be multi-family (70%) and the majority of these units will be rental units. He stated that many of the rental units are being rented quickly and the sale of townhomes has been very brisk. Developers will be building less single-family homes as the pricing is too high for most buyers. He estimates that in 2019 more industrial developments will be built in 3 the Otay Mesa area, less retail spaces will be built as it is felt that there is enough retail spaces and no office developments will be built over the next 3 years. Following Mr. Nevin’s presentation he and staff responded to comments and questions from members of the board. Director Croucher stepped off the dias at 4:17 p.m. and returned at 4:19 p.m. PUBLIC HEARING 8. PUBLIC HEARING ON BOARD OF DIRECTORS PER DIEM RATE THE BOARD WILL BE HOLDING A PUBLIC HEARING TO HEAR THE PUBLIC’S COMMENTS ON THE PROPOSED 5% INCREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OFFICE. a) ADOPT ORDINANCE NO. 573 TO APPROVE THE PROPOSED 5% INCREASE TO THE BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND PERFORMING THE DUTIES OF THEIR OFFICE; AND, ADOPT RESOLUTION NO. 4361 AMENDING POLICY 8 TO REFLECT THE NEW PER DIEM RATE AND SECTION C.6.D TO CLARIFY DISTRICT PRACTICE REGARDING DIRECTOR’S RESPONSIBILITY FOR EXPENSES President Thompson opened the public hearing at 4:25 p.m. As no one wished to be heard, the public hearing was closed at 4:26 p.m. The board discussed that by State law the maximum percentage that the board could increase its per diem rate is 5%. With a 5% increase, the District’s per diem rate would be set at $152 which would be below the median of the local water agencies per diem rates. The board also stated that board member compensation is fundamental to assure the District can attract persons of quality who can represent the public well. The position of board member is considered public service and not voluntary service. It was also indicated that a board member’s job is to make good decisions and attract professional staffing. A motion was made by Director Robak, 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 adopt Ordinance No. 573 to increase the Board of Directors’ per diem rate 5% to $152 and adopt Resolution No. 4361 to amend Policy 8 as noted in the resolution. CONSENT CALENDAR 4 9. 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 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) APPROVE CHANGE ORDER NO. 3 TO THE EXISTING CONSTRUCTION CONTRACT WITH PACIFIC HYDROTECH CORPORATION IN THE AMOUNT OF $64,864 FOR THE 870-2 PUMP STATION REPLACEMENT PROJECT b) AWARD A CONTRACT TO LAYFIELD USA FOR THE MAINTENANCE OF THE FLOATING COVERS ON FOUR (4) POTABLE AND TWO (2) RECYCLED WATER RESERVOIRS FOR AN AMOUNT NOT-TO-EXCEED $169,805 FOR FISCAL YEAR 2020; WITH FOUR (4) ONE-YEAR OPTIONS FOR RENEWAL AT THE GENERAL MANAGER’S DISCRETION ACTION ITEMS 10. ENGINEERING AND WATER OPERATIONS a) ADOPT RESOLUTION NO. 4356 TO APPROVE THE AMENDED AND RESTATED REGIONAL WASTEWATER DISPOSAL AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE PARTICIPATING AGENCIES IN THE METROPOLITAN SEWERAGE SYSTEM. THE UPDATED AGREEMENT INCORPORATES THE PURE WATER SAN DIEGO PROGRAM, WHICH IS A LONG-RANGE REGIONAL WATER REUSE PLAN WITH THE GOAL OF REALIZING A SECONDARY EQUIVALENT POINT LOMA WASTEWATER TREATMENT PLANT AND A NEW LOCAL SUSTAINABLE WATER SUPPLY Senior Civil Engineer Steve Beppler indicated that staff is requesting that the board adopt Resolution No. 4356 to approve the Amended and Restated Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies in the Metropolitan Sewerage System. He stated the District is one of twelve participating agencies that sends sewage to the City of San Diego for treatment (mainly at the Point Loma Wastewater Treatment Plant [PLWTP]). The discharge permit for the PLWTP is currently modified to allow for the facility to operate at Advanced Primary Treatment with the waiver required to be reviewed every five (5) years in lieu of constructing secondary treatment facilities. For the 2015 permit renewal, the City reached an agreement with the environmental 5 community to incorporate a Pure Water Program. The Pure Water Program would allow for the PLWTP to attain treatment equivalent to secondary treatment. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Beppler’s presentation. Director Croucher stepped off the dias at 4:49 p.m. and returned at 4:55 p.m. Mr. Beppler indicated that the District took a proactive approach on obtaining clarifications on the agreement and sent a letter to the City of San Diego indicating the District’s interpretation of several sections of the agreement related to the operation of our Ralph W. Chapman Recycling Water Facility and the return of solids to the sewer system. Distinguishing the difference between our current facility and other advanced water purification projects, the District asked the City to acknowledge and agree to the letter which they did. The letter is included as attachment C to the staff report. With the City’s concurrence of the District’s interpretations outlined in the letter, staff is now prepared to recommend the approval of the Amended and Restated Regional Wastewater Disposal Agreement. In response to an inquiry from the board, staff indicated that the approximate rate impact of the amended agreement and the City of San Diego’s Pure Water Project is approximately 9%. Staff will phase in the 9% increase over the next six (6) years into the District’s rate model. After the 9% has been phased in, there is another approximate 20% increase that will need to also be phased in over time. The board requested that staff ask the City of Chula Vista to make their sewer customers aware that their sewer fee will be recalculated based on their 2019 winter water use and that there will not be a sewer rate increase. Staff responded to additional questions and comments from the board. A motion was made by Director Smith, and seconded by Director Robak and carried with the following vote: Ayes: Directors Croucher, Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: None to approve staff’s recommendation. 11. BOARD a) DISCUSSION OF THE 2019 BOARD MEETING CALENDAR President Thompson indicated that he will not be able to attend the May 1, 2019 regular board meeting and that Director Robak would be chairing the meeting. There were no changes to the board meeting calendar. REPORTS 6 12. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on the GIS application for District operations, management and reporting; national cybersecurity assessment and technical services; lobby security enhancements; large meter testing; enhanced cash control; the Campo Road sewer replacement project; the sewer overflow in Rancho San Diego; water conservation; sales and purchases. In response to an inquiry from the board it was indicated that the Chula Vista sewer billing error may be noted in the Strategic Plan billing measure. Staff indicated that the measure provides an allowance for errors, and it is not certain 250 billing errors would have much of an impact on the measure. Staff will review and provide the board information following today’s meeting. The board also inquired about payments listed in the demands list to Watchlight Corporation. Staff indicated that the charges are associated with planned enhancements and improvements to the District’s security system. Staff will review the charges and follow-up with information to the board. Staff responded to additional questions and comments from the board. Director Robak stepped off the dias at 5:47 p.m. and returned at 5:49 p.m. 13. SAN DIEGO COUNTY WATER AUTHORITY UPDATE Director Croucher provided an update on CWA matters which included that representatives have just returned from Sacramento where they met with legislators to discuss the water agencies’ displeasure with the proposed water tax; the Department of Water Resources indicating that the Carlsbad desalination intake pipeline project is not eligible for their grant; water storage; negotiations with employees; the recruitment for the general manager position; and that the chair and general manager of MWD attended a CWA meeting and they also met over breakfast with the chair and general manager of CWA. Director Smith further reported that CWA’s Administration, Finance, Web and GIS team presented on their Asset Management Program; that a legislative public outreach poll will be performed which will include questions concerning recycled water and indirect potable reuse; that the drought contingency plan was signed on March 29, 2019 and is headed to congress for approval; and that funding is still available through MAAP where MWD is providing funding to the member agencies for conservation and public outreach. He also shared with regard to MWD that they are discussing the reconfiguration of the “Water Fix” and that he will be hosting an inspection trip in April to the Colorado River Aqueduct. Director Croucher commented that the board may wish to agendize a discussion on the MAAP funding to identify areas in the District’s service area where may wish to install water filling stations. Directors Croucher and Smith responded to questions and comments from the board. 7 14. DIRECTORS' REPORTS/REQUESTS Director Robak reported that per capita water use within the District’s service area in 2013 was 109 gallons per day (GPD). In 2016 and 2017 the per capita water use dropped to 94 and 93 GPD respectively. In 2018 it increased to 96 GPD. He stated if the 2018 per capita water use is compared to 2013 use (the baseline year), water use has decreased 8.7%. He also noted that, though, California has had record rains this season, an article in the Union-Tribune indicates that local reservoirs are only at 50% capacity. He also shared that this is the first time since 2011 that the State of California is no longer in a drought status. He commended Assistant Chief of Operations Jose Martinez for his presentation on AB1588, providing Veterans credit/certification for their military experience in water treatment processes, to the San Diego East County Chamber. He lastly shared a short video on “shaming” those who drink bottled water which was based on a Game of Thrones episode. Director Gastelum reported that he attended a presentation on desalination at the Carlsbad City Library with Director Robak and indicated that they received very good information. He also shared that he attended the WELL Conference (Water Education for Latino Leaders), the Chula Vista Chamber Commerce Policy meeting, the ACWA Washington DC conference and participated in some webinars in March. Director Smith reported on meetings he attended during the month of March which included the District’s Engineering, Operations and Water Resources Committee, the East County Caucus meeting, and his quarterly meeting with General Manager Watton. Director Croucher indicated Helix WD presented a salary survey at their last board meeting and requested that staff provide copies of the survey to the District’s board members. 15. PRESIDENT’S REPORT President Thompson’s report is attached. He reviewed from the report the meetings he attended in March. 16. CLOSED SESSION The board recessed to closed session at 6:41 p.m. to discuss the following matter: a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION [GOVERNMENT CODE §54956.9] 1 CASE Director Croucher left the meeting at 7:01 p.m. The board reconvened at 7:08 p.m. and Attorney Jeanne Blumenfeld indicated that the board took no reportable actions in closed session. 8 OTAY WATER DISTRICT FINANCING AUTHORITY 17. NO MATTERS TO DISCUSS President Thompson indicated that there were no items scheduled for discussion for the Otay Water District Financing Authority board. 18. ADJOURNMENT With no further business to come before the Board, President Thompson adjourned the meeting at 7:08 p.m. ___________________________________ President ATTEST: District Secretary 9 President’s Report Mitch Thompson April 3, 2019 Board Meeting # Date Meeting Purpose 1 1-Mar Chula Vista Chamber and City of Chula Vista First Friday Breakfast Meeting Represented the District at their Monthly Meeting 2 4-Mar Sycuan Casino Press Conference Press Conference Commemorating MWD and Local Water Agency Partners for Providing a Stable Water Supply for the Casino 3 5-Mar SCEDC Board Meeting Represented the District at the Monthly Board Meeting 4 6-Mar OWD Regular Board Meeting Monthly Board Meeting 5 14-Mar Committee Agenda Briefing Met w/ General Manager Watton to review items that will be presented at the March committee meetings 6 19-Mar Council of Water Utilities Attended the COWU montly meeting. 7 21-Mar Southwestern College Cesar Chavez Student Scholarship Breakfast Represented the District at the event. 8 21-Mar Mexican American Business and Professional Association Represented the District at the Monthly Meeting 9 26-Mar Board Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the April Board Meeting