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HomeMy WebLinkAbout06-06-18 Board Minutes 1 MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE OTAY WATER DISTRICT June 6, 2018 1. The meeting was called to order by President Smith at 3:31 p.m. 2. ROLL CALL Directors Present: Gastelum, Robak, Smith and Thompson Directors Absent: Croucher (attending daughter’s graduation) Staff Present: General Manager Mark Watton, General Counsel Dan Shinoff, Chief Financial Officer Joe Beachem, Chief of Engineering Rod Posada, Chief of Operations Pedro Porras, Chief of Administration Adolfo Segura, Asst. Chief of Finance Kevin Koeppen, 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 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 agenda. 5. APPROVE THE MINUTES OF THE REGULAR BOARD MEETING OF MARCH 7, 2018 AND SPECIAL BOARD MEETING OF MARCH 6, 2018 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 the minutes of the regular board meeting of March 7, 2018 and special board meeting of March 6, 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. 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: Director Thompson pulled items 6b, ADOPT RESOLUTION NO. 4347 TO ESTABLISH THE TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.004 FOR FISCAL YEAR 2018-2019, for discussion. A motion was made by Director Robak, seconded by Director Thompson 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. 4346 TO CONTINUE WATER AND SEWER AVAILABILITY CHARGES FOR DISTRICT CUSTOMERS FOR FISCAL YEAR 2018-2019 TO BE COLLECTED THROUGH PROPERTY TAX BILLS c) ACCEPT AN OFFER FROM THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION TO PURCHASE 0.331 ACRES OF LAND, LOCATED ALONG THE FUTURE ALIGNMENT OF STATE ROUTE 11 IN OTAY MESA, FOR $90,000.00; AND ENTER INTO A CONSENT TO COMMON USE AGREEMENT WITH GRANT OF EASEMENT THAT SECURES THE OTAY WATER DISTRICT’S PRIOR PROPERTY RIGHTS d) AWARD A CONSTRUCTION CONTRACT TO M-RAE ENGINEERING, INC. FOR THE INTERCONNECT AIRVAC VALVE REPLACEMENT PROJECT IN AN AMOUNT NOT-TO-EXCEED $83,000.12 e) AWARD TWO (2) PROFESSIONAL AS-NEEDED COATING INSPECTION SERVICES CONTRACTS; ONE WITH COATING SPECIALISTS AND INSPECTION SERVICES, INC. AND THE OTHER WITH RF YEAGER ENGINEERING, INC. EACH IN AN AMOUNT NOT- 3 TO-EXCEED $175,000. THE TOTAL AMOUNT OF THE TWO (2) CONTRACTS WILL NOT EXCEED $175,000 DURING FISCAL YEARS 2019, 2020, AND 2021 (ENDING JUNE 30, 2021) f) AWARD TWO (2) PROFESSIONAL AS-NEEDED LAND SURVEYING SERVICES CONTRACTS; ONE WITH HUNSAKER AND ASSOCIATES AND THE OTHER WITH PSOMAS, EACH IN AN AMOUNT NOT-TO- EXCEED $250,000. THE TOTAL AMOUNT OF THE TWO CONTRACTS WILL NOT EXCEED $250,000 DURING FISCAL YEARS 2019, 2020, 2021 (ENDING JUNE 30, 2021) President Smith presented item 6b for discussion: b) ADOPT RESOLUTION NO. 4347 TO ESTABLISH THE TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.004 FOR FISCAL YEAR 2018- 2019 Director Thompson indicated that he wished the public to know that over the years the District has reduced the tax rate for ID 27 by about 75%. He stated that it is not often that the public hears that a tax rate is being reduced. He indicated as this is significant he wanted it noted in the minutes. A motion was made by Director Thompson, seconded by Director Robak 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. ACTION ITEMS 8. ADMINISTRATIVE SERVICES a) APPROVE RESOLUTION NO. 4349 AS REQUIRED BY CALPERS TO WAIVE THE 180-DAY WAITING PERIOD FOR HIRING A RETIRED ANNUITANT DUE TO SPECIAL NEEDED SKILLS Human Resources Manager Kelli Williamson indicated that staff is requesting that the Board adopt Resolution number 4349 as required by CalPers to waive the 180-day waiting period for hiring a retired annuitant due to special needed skills. The District is involved in two lawsuits. The first is with the City of San Diego regarding their recycled water rates and the second is a suit filed against the District concerning its water rate structure. Ms. Rita Walmer was the Finance Manager who oversaw the setting of rates for the District and the contractual payments to the City of San Diego for recycled water purchases. Ms. Walmer 4 will be retiring this Friday, June 9, 2018, and her expertise is necessary to serve as an expert witness and to assist the District’s attorneys in preparing for these lawsuits. Ms. Walmer will not be performing the duties of her position, but will be available on a part-time as needed basis to assist for the duration of the lawsuits or until she is retained as an expert consultant by the District’s counsel. By adopting the presented resolution, it establishes the certification, terms and conditions of employment required by law. Director Gastelum thanked Ms. Walmer for her hard work and congratulated her on her retirement. 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. 9. BOARD a) DISCUSSION OF BOARD OF DIRECTORS POLICY 8, DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS President Smith indicated that in September 2004, the then sitting board voted to reduce the Board of Directors per diem reimbursement rate from $145 to $100 per meeting. He stated that was 14 years ago and he is proposing that the board restore the per diem rate back to $145. He also presented a strike-thru copy of Policy 8 with additional proposed amendments. A copy was provided on the dias for each member of the board (see attached copy). Director Thompson noted that he reviewed the language of the State law carefully and believes that the members of the board have a very strong legal basis for reinstating the per diem rate to $145 per meeting. He asked Counsel to read the clause in the State law regarding the increase of per diem rates. Counsel Dan Shinoff read California Water Code Section 20202 which indicates: “In any ordinance adopted pursuant to this chapter to increase the amount of compensation which may be received by members of the governing board of a water district above the amount of $100 per day, the increase may not exceed an amount equal to 5% for each calendar year following the operative date of the last adjustment of the compensation which is received and when the ordinance is adopted.” 5 Director Thompson indicated that the question becomes what was the last date that the per diem rate was adjusted as the Statute states the “last adjustment of the compensation.” He stated that his argument would be that the board would look at the last upward adjustment received by the board which was 14 years ago. He indicated that, theoretically, the board could increase the per diem rate 5% above $145. He felt, however, that President’s Smith recommendation of $145 is an appropriate amount. President Smith shared that if the per diem rate of $100 was increased 5% over 14 years, uncompounded, the rate would be $169 per meeting. He stated that increasing the per diem rate to $145 is approximately a 3.5% per year increase and that it is appropriate and within legal bounds. He proposes that the new rate be implemented on July 1, 2018 to coincide with the District’s fiscal year calendar. Director Gastelum indicated that because the per diem rate affects all members of the board, he would like to agendize this discussion for another meeting when Director Croucher is in attendance. President Smith indicated that he had spoken with Director Croucher and he (Director Croucher) agreed with increasing the per diem rate to $145 per meeting. President Smith indicated in response to an inquiry from Director Robak that the per diem rate would need to be brought back every year for board action, per State law, if the board wishes to increase it. It is proposed that it be brought back with the regular budget cycle. The board discussed the amendments to Board Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits, proposed by President Smith and agreed to remove the limiting of the attendance of Council of Water Utilities meetings to four (4) per year and to add language under item number five (5) on Exhibit A, Approved Functions List, indicating if a per diem reimbursement is provided by another agency (ie. San Diego County Water Authority and the Metro Commission) the Director will not receive a per diem reimbursement from the District. Director Thompson indicated that before the board votes, he wished Counsel to opine on the board’s proposal to increase the per diem rate to $145 per meeting. Counsel Shinoff indicated that the Attorney General provided an opinion interpreting Government Code Section 36516. He stated that the per diem rate of $145 existed before and, therefore, it would not be an increase on an amount that was never provided or previously received by the board. He stated that he does believe that this is a reasonable analysis and application of the Government Code and the Attorney General’s opinion. President Smith added that on the dias for each member of the board there is also a list of the per diem rates of other agencies. He noted that many of the 24 agencies within San Diego County have per diem rates of $150 to $200. He 6 stated the District is the second largest agency and its per diem rate is on the low end when compared with the other agencies. Director Thompson further indicated that he felt that a higher per diem rate would encourage a broader participation from the District’s service area to serve on the Otay WD board. A motion was made by Director Robak, seconded by Director Thompson and carried with the following vote: Ayes: Directors Robak, Smith and Thompson Noes: Director Gastelum Abstain: None Absent: Director Croucher to approve increasing the per diem rate to $145 per meeting per day effective July 1, 2018 and the amendments to Policy 8, Directors Compensation, Reimbursement of Expenses and Group Insurance Benefits as redlined in the attached with the exception of taking out the limiting of the attendance of Council of Water Utilities meetings to four (4) per year and the board wishes to add language under number 5 on Exhibit A, Approved Functions list, stating if a per diem reimbursement is provided by another agency (ie. San Diego County Water Authority and the Metro Commission) the Director will not receive a per diem reimbursement from the District. b) DISCUSSION OF 2018 BOARD MEETING CALENDAR President Smith noted that the July board meeting will be held on the second Wednesday of the month on July 11, 2018. There were no other changes to the board meeting calendar. INFORMATIONAL ITEM 10. THE FOLLOWING ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS: a) INFORMATIONAL UPDATE ON THE RALPH W. CHAPMAN WATER RECYCLING FACILITY 14-INCH FORCE MAIN CONDITION ASSESSMENT, REPAIRS, AND IMPROVEMENTS Civil Engineer Jeff Marchioro provided an update on the District’s 14-inch Force Main condition assessment, repairs and improvements project. He stated that during his presentation he will be referring to the samples of corroded pipes, displayed in the boardroom, that were replaced during the pipeline repair. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Marchioro’s report. 7 In response to an inquiry from Director Robak, Mr. Marchioro indicated that the most often reason they found causing corrosion within the pipeline was the failure of the concrete lining. The mortar lining of the pipe helps protect the steel and everything that they have identified, thus far, has been corroded from the inside out. Dents have been observed on the outside of the pipe, which possibly occurred during installation and likely caused the damage to the mortar. It was discussed that, of the 40 defects identified by Pipeline Inspection and Condition Analysis Corporation (PICA), nine (9) were selected for repair. The others were not repaired as PICA’s consultant for structural engineering analyzed the remaining steel wall of the 31 other defects and indicated that they were okay for now (approximately 50% plus of the wall remaining). Staff will continue to monitor the pipeline and PICA will be brought back in approximately another five (5) years to assess the pipe once again. PICA’s assessment technology has allowed the District to extend the life of the pipeline for many years and avoid replacing the entire pipeline at a cost of $10 million plus. Many agencies are looking to this technology to extend the life of their facilities rather than replacing entire pipelines. b) THIRD QUARTER OF FISCAL YEAR 2018 CAPITAL IMPROVEMENT PROGRAM REPORT Engineering Manager Dan Martin provided an update on the 3rd quarter of the District’s Capital Improvement Program (CIP). Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Martin’s report. President Smith indicated that staff has done an excellent job with the change order rate and that staff is working on advancing some CIP projects to allow the District to meet its goal of 95% to 100% of the CIP budget expended by fiscal year-end. Director Gastelum indicated that he found the tour of the 870-2 Pump Station and 571-1 Reservoir very informative. He stated that he would like to see more of these types of tours as it is very helpful to see the project sites and learn more about what the District does. President Smith indicated that he wished to suggest a visit to a tank recoating and relining project. He stated that he felt it was important for the board to understand the difficulties associated with recoating the tank and the environmental issues that must be addressed. Director Thompson requested a tour of the City of San Diego’s South Bay Water Reclamation Plant (SBWRP). General Manager Watton indicated that a tour can be scheduled and suggested that we include a tour of the International Boundary Water Commission’s Water Treatment Plant on the same day as it is located just down the street from the SBWRP. c) RECEIVE AN UPDATE ON THE DISTRICT’S ASSET MANAGEMENT PROGRAM AND RELATED SUPPORT PRACTICES 8 Chief of Administrative Services Adolfo Segura provided an update on the District’s Asset Management Program (AMP) and support practices. Please reference the Committee Action notes (Attachment A) attached to the staff report for the details of Mr. Segura’s report. The board had questions and comments regarding the report and staff responded to their inquiries. REPORTS 11. GENERAL MANAGER’S REPORT General Manager Watton presented information from his report which included an update on the rapid bottle filling stations, the reports and maps for the Free Chlorine Transition Plan, the water rate notices and sewer 218 notices, city of Chula Vista sewer rates, water conservation and sales. He also reviewed a handout provided to each member of the board regarding the Otay Regional Trail Alignment Study fact sheet and Open House/Workshop announcement for the trail study (please see attached). 12. CWA REPORT President Smith indicated that at the May CWA board meeting there was discussion concerning the water rates for Fiscal Year 2019. He stated the rates for raw and treated water are going up 2.9% and 0.9% respectively. CWA’s board also discussed efforts to reduce the cost for IID transfer water through the lawsuit which resulted in a decrease of $33 per acre foot or 6.8%. He stated that CWA’s legislative section also reported that Director Thompson was appointed treasurer of the Water Conservation Garden. He stated the largest issue being discussed at CWA is the development of policy principles for the Bay Delta water fix project. He indicated that there was a policy presented to CWA’s board in 2012 which agreed with the Bay Delta project in concept and staff provided a redline version of this 2012 policy that added “opposition” language. CWA’s board did not accept the reworked document and asked staff to refine the policy. He stated the discussion of the policy took place over a nine and a half hour meeting in May. CWA is continuing to discuss and refine this policy. Director Thompson inquired if President Smith had material on the proposed policy that he could share with District staff to pass along to the board. President Smith indicated that he did and he would forward the information to staff. Director Thompson also stated that he would like to refer the Bay Delta water fix project back to the Otay WD’s Public Relations, Legislative and Legal Committee to discuss how they, as a board, should communicate the information to their constituents because of the significant impact it may have on the District’s rates. President Smith indicated that he agreed and the issue they are having is that the policy is continuously changing and they wish to get the information finalized before communicating the policy. 9 President Smith lastly shared that the Colorado River may see some shortages starting in 2020. California will not be impacted because of its priority rights on the river, but there is efforts to develop a plan to assist other States with this issue. 13. DIRECTORS' REPORTS/REQUESTS Director Thompson reported that he voluntarily attended CWA’s press conference on the water tax. He indicated that he noted there were Spanish speaking media in attendance of the press conference and he felt that the press conference would have received good coverage if CWA had an individual available to do a Spanish speaking interview. He indicated that , fortunately, Ms. Susy Villegas, representing the Chula Vista Chamber of Commerce, volunteered to speak with the Spanish press on the issue. He suggested that CWA have a Spanish speaking representative available at press conferences. Director Thompson also suggested to Directors when they are making a “symbolic” vote to be aware of the item that is being voted upon and to do so with caution. He indicated that Item 6b, ADOPT RESOLUTION NO. 4347 TO ESTABLISH THE TAX RATE FOR IMPROVEMENT DISTRICT NO. 27 AT $0.004 FOR FISCAL YEAR 2018-2019, is to allow the District to put a tax on the tax roll which will be a revenue source to the District. He lastly shared that he attended a San Diego Chamber of Commerce meeting where the District’s General Manager was the featured speaker regarding the status of the Colorado River Agreement. Director Gastelum indicated that he attended a CSDA seminar on Proposition 26 and 218 on rate setting which was very worthwhile. He stated he also attended a presentation at the Water Conservation Garden on Greywater. He indicated that he appreciated learning about new technology and ideas related to how we can save water. Director Robak thanked Director Croucher and Smith for attending CWA’s press conference on the water tax. He indicated that he felt it was important that we take a public stance on this issue. He shared that the Orange County Water District will be voting on the Huntington Beach Desalination Project this evening. He lastly indicated that his father lives in the City of San Diego and he received an offer in the mail for insurance that can be purchased for sewer and lateral repairs which is being promoted by the City of San Diego. He stated that maybe this is something the District, and possibly the City of Chula Vista, may want to look into as lateral repairs can be quite costly. 14. PRESIDENT’S REPORT President Smith stated that his report on meetings he attended during the month of May 2018 will be attached to the minutes. He commented with regard to the Pure Water Update in the General Manager’s report that the Metro Commission JPA is reviewing and will be proposing amendments to the JPA agreement to include the cost and flow rates for all member agencies. Their goal is have the 10 agreement completed before the City of San Diego begins issuing construction contracts for the Pure Water Program. The amended agreement will be presented at a future meeting. He stated that he will be establishing an Ad Hoc General Manager Evaluation Committee effective today. He will chair the committee and will be appointing Director Robak to serve on the committee with him. He stated that the evaluation form will be sent out to each of the Directors and he would like a preliminary review agendized for closed session discussion at the July 11, 2018 board meeting. 15. ADJOURNMENT With no further business to come before the Board, President Smith adjourned the meeting at 5:37 p.m. ___________________________________ President ATTEST: District Secretary 11 President’s Report Tim Smith June 6, 2018 Board Meeting # Date Meeting Purpose 1 2-May OWD Regular Board Meeting Monthly Board Meeting 2 15-May Quarterly Meeting with OWD GM Met with GM to receive an update on projects or items impacting Division 1. 3 17-May Committee Agenda Briefing Met w/ General Manager Watton to review items that will be presented at the May committee meetings 4 18-May Meeting w/ Dir Croucher and GM Watton Discuss CWA Matters 5 21-May OWD Special Board Meeting Special Board Meeting/Budget Workshop to discuss the FY 2019 Budget 6 22-May East County Caucus Discuss Otay's key issues with East County water agencies and CWA 7 22-May EO&WR Committee Reviewed items that will be presented at the June board meeting 8 25-May Meeting w/ Pete Silva Discuss regional water issues. 9 31-May Agenda Briefing Met with General Manager Watton and General Counsel Shinoff to review items that will be presented at the June Board Meeting