HomeMy WebLinkAbout04-02-25 Board Minutes1
MINUTES OF THE
BOARD OF DIRECTORS MEETINGS OF THE
OTAY WATER DISTRICT
AND
OTAY WATER DISTRICT FINANCING AUTHORITY
April 2, 2025
1.The meeting was called to order by President Lopez at 3:34 p.m.
2.ROLL CALL
Directors Present:Croucher, Gonzalez, Lopez, Rivera, and Robak
Directors Absent:None
Staff Present:General Manager Jose Martinez, General Counsel Dan Shinoff,
Chief of Engineering Michael Long, Chief Financial Officer
Joe Beachem, Chief of Administration Adolfo Segura, Acting
Chief of Operations Jake Vaklavek, Asst. Chief of Finance Kevin
Koeppen, and District Secretary Tita Ramos-Krogman.
3.PLEDGE OF ALLEGIANCE
4.APPROVAL OF AGENDA
A motion was made by Director Croucher, seconded by Director Robak, and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Rivera, and Robak
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5.APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF FEBRUARY 5,
2025 AND MARCH 5, 2025
A motion was made by Director Robak, seconded by Director Gonzalez, and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Rivera, and Robak
Noes: None
Abstain: None
Absent: None Smith
to approve the minutes of the regular meetings of February 5, 2025, and March 5,
2025.
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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
There were no public comments to be heard.
ACTION ITEMS
7. BOARD
a) PRESENT THE RESULTS OF THE CURRENT SEWER COST OF SERVICE
STUDY, PREPARED BY RAFTELIS FINANCIAL CONSULTANTS, INC., AND
OBTAIN DIRECTION FROM THE BOARD TO INCORPORATE THE COST-OF-
SERVICE STUDY’S RESULTS INTO THE FY 2026 BUDGET
Assistant Chief Financial Officer Kevin Koeppen provided the staff report to the board
and noted that this new study uses the fiscal year 2025 budget and six-year rate
model. He stated that the findings of the current study recommend updating the
district’s sewer rates to reflect current usage characteristics and costs. The most
recent hearing for sewer rates occurred in October 2020 and the actions taken are
effective until the end of 2025. Mr. Koeppen stated that implementation of new rates
beyond 2025 requires a new Proposition 218 Notice and Hearing. Staff is proposing a
modification to the district’s Proposition 218 Notice Hearing, which Mr. Koeppen
discussed in detail. He introduced Steve Gagnon, Vice President at Raftelis Financial
Consultants, Inc. (Raftelis), who provided a PowerPoint presentation of the results of
the current sewer cost of service study.
Mr. Gagnon indicated that there were several text changes to today’s PowerPoint
Presentation from the one he provided at the Finance and Administration Committee
on March 19, 2025, and noted that the results and numbers are all the same. See the
attached PowerPoint presentation for details.
Chief Financial Officer Joe Beachum stated that this agenda item is a resetting of
existing rates. Currently, staff is not requesting a sewer rate increase.
In response to a question from Director Robak, Mr. Koeppen stated that the last sewer
cost of service study was completed in 2020.
Director Croucher inquired about the studies for potable and reclaimed water.
Mr. Koeppen stated that those studies are scheduled to begin in 2026, complete in
2027, and brought to a Proposition 218 Public Hearing in October of 2027 for a rate
increase effective January 1, 2028. Director Croucher discussed the district’s plan to
incorporate an administrative exhaustion process. Staff responded to additional
questions from Director Croucher and indicated that a Proposition 218 Notice Public
Hearing will be held in October 2025. Director Croucher requested to discuss this
matter in closed session before the October 2025 public hearing.
In response to a question from Director Gonzalez, staff stated that the return to sewer
factor was based on the month of April 2024.
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Director Rivera recommended that staff add to the report a hyperlink to the map or a
figure that would show the district’s sewer service area. He also recommended that a
Classification ID Number/System be added to indicate which industries are high,
medium or low.
Mr. Koeppen responded to additional questions from Director Robak and stated that
the sewer rates presented in the attached report have been calculated using
acceptable rate setting standards and meet the requirements of Proposition 218. He
also stated that if directed by the board, staff will incorporate these rates in the Fiscal
Year 2026 Budget, which will be presented at the June 4, 2025, board meeting.
A motion was made by Director Robak, seconded by Director Croucher and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Rivera and Robak
Noes: None
Abstain: None
Absent: None
to incorporate the results of the sewer service study rates into the Fiscal Year 2026
Budget.
b) DISCUSS THE 2024 BOARD MEETING CALENDAR
District Secretary Ramos-Krogman indicated that a special board meeting is
scheduled for April 16, 2025, at 2:30pm.
PUBLIC HEARING
8. THE BOARD WILL HOLD A PUBLIC HEARING TO CONSIDER APPROVING THE
FOLLOWING AGENDA ITEM AND INVITES THE PUBLIC TO PROVIDE
COMMENTS ON THE ITEM:
a) ADOPT ORDINANCE NO 596 TO APPROVE THE 4.62% INCREASE TO THE
BOARD OF DIRECTORS’ PER DIEM RATE FOR ATTENDING MEETINGS AND
PERFORMING THE DUTIES OF THEIR OFFICE; AND ADOPT RESOLUTION
NO. 4452 AMENDING POLICY NO. 8 TO REFLECT THE NEW PER DIEM
RATE
President Lopez closed the regular board meeting and opened a public hearing at
4:24 p.m. and asked District Secretary Ramos-Krogman if there were any speakers
who wished to provide comments to the board.
District Secretary Ramos-Krogman stated that there were no speaker slips and/or
public participation for this public hearing.
With no public participation and discussion from the board, President Lopez closed the
public hearing at 4:25 p.m.
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A motion was made by Director Robak, seconded by Director Rivera and carried with
the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Rivera, and Robak
Noes: None
Abstain: None
Absent: None
to adopt Ordinance No. 596 to approve the 4.62% increase to the Board of Directors’
Per Diem rate for attending meetings and performing the duties of their office; and
adopt Resolution No. 4452, amending Policy No. 8 to reflect the new Per Diem rate.
The regular board meeting resumed at 4:25 p.m.
CONSENT ITEMS
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:
Director Robak requested that Agenda Item 8c, 2025 Legislative Program Policy
Guidelines and Top 10 Legislative and Regulatory Priorities, be pulled for discussion.
A motion was made by Director Croucher, seconded by President Lopez and carried
with the following vote:
Ayes: Directors Croucher, Gonzalez, Lopez, Rivera and Robak
Noes: None
Abstain: None
Absent: None
to approve the following consent calendar items:
a) REJECT ALL BIDS RECEIVED FOR THE AS-NEEDED CONSTRUCTION
SERVICES BID #FY25-3232-1216
b) AWARD A PROFESSIONAL ENGINEERING SERVICES AGREEMENT TO
WOODARD & CURRAN AND AUTHORIZE THE GENERAL MANAGER TO
EXECUTE THE AGREEMENT FOR UPDATES TO THE WATER FACILITIES
MASTER PLAN AND PROGRAM ENVIRONMENTAL IMPACT REPORT, URBAN
WATER MANAGEMENT PLAN, AND INTEGRATED WATER RESOURCES PLAN
IN AN AMOUNT NOT-TO-EXCEED $1,321,867
c) 2025 LEGISLATIVE PROGRAM POLICY GUIDELINES AND TOP 10
LEGISLATIVE AND REGULATORY PRIORITIES
d) AUTHORIZE THE WATER CONSERVATION GARDEN JOINT POWERS
AUTHORITY (JPA) INVOICE FOR THE REMAINDER OF FISCAL YEAR ENDING
JUNE 30, 2025
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e) AWARD A PROFESSIONAL SERVICE CONTRACT TO AXIM GEOSPATIAL FOR
THE ARCGIS GEOMETRIC NETWORK TO UTILITY NETWORK MIGRATION IN
AN AMOUNT NOT-TO-EXCEED $450,000
INFORMATIONAL ITEM
10. ITEMS ARE PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES
ONLY. NO ACTION IS REQUIRED ON THE FOLLOWING AGENDA ITEMS
a) WATER CONSERVATION GARDEN JOINT POWERS AUTHORITY (JPA)
UPDATE
General Manager Jose Martinez provided the staff report to the board and noted
that this agenda item was discussed at the Conservation/Public
Relations/Legal/Legislative Committee meeting on March 18, 2025. He noted that
in June 2024, the Otay Water District (District) submitted its letter to opt out of the
WCG and said that the District can choose to rescind that letter to continue to
support the WCG. A decision on this matter must be made by the next board
meeting. Mr. Martinez responded to comments and questions from the board and
introduced Ms. Lauren Magnuson, Director of Garden Operations, to provide
additional updates and details of the WCG.
A letter from Ms. Kathleen Coates Hedberg, President of the WCG, was provided
to the board. It requested that the District withdrawal letter from the WCG. See
attached letter from the WCG dated March 27, 2025, for details. Attached to that
letter was WCG’s proposed budget for the next fiscal year, in which Ms. Magnuson
provided details of the budget and responded to the board’s questions and
comments.
President Lopez indicated that a final decision will be made at the District’s May 7,
2025, board meeting.
Director Rivera commented that support for the WCG is feasible if the District
considers splitting the necessary funding with the Sweetwater Authority and Helix
Water District and have the Cuyamaca College be responsible for the costs of
utilities and insurance.
Director Gonzalez suggested advertising the WCG in local media and the District’s
social media to help promote the Garden.
Director Croucher suggested that the WCG reach out to CalFire Captain Thomas
Shoots to see if Homeland Security grants are available for the WCG.
b) SECOND QUARTER FISCAL YEAR 2025 CAPITAL IMPROVEMENT PROGRAM
REPORT
Public Services Manager Kevin Cameron provided a PowerPoint presentation to
the board and responded to their comments and questions.
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Director Croucher suggested that a graph showing percentages of baseline
completion on project timelines be added to the CIP Budget Forecast vs.
Expenditures slide.
c) FISCAL YEAR 2025 MID-YEAR UPDATE FOR THE DISTRICT’S FISCAL YEAR
2023-2026 STRATEGIC PLAN
Information Technology Manager Michael Kerr provided a PowerPoint presentation
to the board and responded to their comments and questions.
Director Croucher stated that it would be helpful if staff could note in the staff report
and presentation when changes are made to the Strategic Plan’s baselines and
targets.
REPORTS
11. GENERAL MANAGER REPORT
General Manager Jose Martinez stated that he had nothing to report.
12. SAN DIEGO COUNTY WATER AUTHORITY UPDATE
Directors Croucher and Robak provided CWA, LAFCO, and MWD updates.
13. DIRECTORS' REPORTS/REQUESTS
Director Croucher indicated that he will be working with Communication Officer Tenille
Otero to schedule a tour of CalFire facilities.
Directors Croucher, Gonzalez, Rivera, and Robak shared and/or submitted written
reports of meetings they attended. See attached reports.
14. PRESIDENT’S REPORT
President Lopez encouraged board members to attend the 2025 WateReuse
California Annual Conference and noted that the Early-Bird Registration for the
conference ends on June 24, 2025. He noted that he and Director Gonzalez are
assigned to the General Manager’s Evaluation Ad Hoc Committee and plans to
activate the Legal Counsel’s Evaluation Ad Hoc Committee.
A written report of meetings he attended was submitted to District Secretary Ramos-
Krogman. See the attached report.
15. CLOSED SESSION
The board recessed to closed session at 6:10 p.m. to discuss the following matters:
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a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to
California Government Code §54956.8
Property: SALT CREEK GOLF COURSE
525 HUNTE PARWAY
CHULAVISTA, CA 91914
Agency negotiator: General Counsel
b) Under negotiation: Disposition of PropertyCONFERENCE WITH LEGAL
COUNSEL – EXISTING LITIGATION [GOVERNMENT CODE §54956.9]
OTAY WATER DISTRICT vs. CITY OF SAN DIEGO; CASE NO. 37-2017-
00019348-CU-WM-CTL
c) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
[GOVERNMENT CODE §54956.9] (1 MATTER)
RETURN TO OPEN SESSION
16. 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 7:16 p.m. and General Counsel Dan
Shinoff reported that the board took action on Agenda Item 14a, Conference with Real
Property Negotiators Pursuant to California§54956.8, with a unanimous vote (5-0) to
approve a contract with CalWest.
No other reportable actions were taken in closed session.
OTAY WATER DISTRICT FINANCING AUTHORITY
17. NO MATTERS TO DISCUSS
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 Lopez adjourned the
meeting at 7:17 p.m.
President
ATTEST:
District Secretary
Updates to Existing Rate Structure
•Revised Return to Sewer (RTS) Factors
›MFR RTS is calculated as the lowest month use divided by average
month use
›Commercial is typically 90 to 100% RTS
–Selected 100%
•Updated Wastewater Strengths
›Low strength commercial should have a lower strength than
residential customers since they do not have a kitchen
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Fixed Charge Development (System Charge)
•Added a customer service charge component to the fixed charge to
reflect customer service costs
•Meter capacity ratios are based on the ¾” meter as the base instead of
5/8”
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Question and Discussion?
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The Water Conservation Garden • 12122 Cuyamaca College Dr. West, El Cajon, CA 92019 • 619.660.0614
• www.TheGarden.org
The Water Conservation Garden is a 501(c)(3) tax exempt government entity. Federal Tax ID# 33-0639414.
March 27, 2025
J P A B O A R D O F D I R E C T O R S
PRESIDENT Kathleen Hedberg SDCWA
VICE PRESIDENT Jose Lopez Otay Water District
TREASURER Jennifer Bryant Helix Water District
SECRETARY Dr. Lynn Neault GCCCD
Director Nicole DeSantis City of San Diego
Director Steve Castanda Sweetwater Authority
Director Dan McMillan Helix Water District
Administrator Brian Olney Helix Water
Otay Water District Board Directors
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
Sent via email: Tita Ramos-Krogman, District Secretary; Tita.Ramos-Krogman@otaywater.gov
Subject: Request to Rescind Otay Water District Withdrawal Letter from the Water
Conservation Garden Authority
Dear Board Directors:
I am writing to respectfully request that the Otay Water District reconsider and rescind its decision to
withdraw from the Water Conservation Garden Authority (Authority) agreement with the Water
Conservation Garden. As a valued community resource, the Garden plays a crucial role in educating the
public about sustainable landscaping, water efficiency, and environmental stewardship—goals that align
with Otay Water District’s mission and commitment to responsible water management.
The Water Conservation Garden has long served as a vital educational tool for residents, schools, and
businesses in our region. By remaining a partner in the Authority, Otay Water District can continue to
support best practices in water-wise landscaping and benefits our entire community. The Garden’s
programs complement Otay Water District outreach efforts to promote efficiency, and maintaining this
partnership demonstrates a continued investment in public education and environmental responsibility
and community service programs to your ratepayers.
Additionally, the collaborative nature of the Authority ensures that financial and operational support for
the Garden is distributed among multiple agencies, reducing the burden on any single entity while
maximizing the benefits for the broader community. Withdrawing from the agreement could undermine
the Garden’s ability to operate effectively and diminish the positive impact it has on water efficiency
efforts in our region. I urge you to continue Otay Water District’s financial support for the Water
Conservation Garden. Thank you for your time and consideration.
Respectfully,
Kathleen Coates Hedberg, PE, MPH
President
Attachments:
1. FY 24/25 budget summary, FY24/25 actuals, and draft proposed budget summary FY 25/26
2. Benefit Analysis of Authority Support for the Water Conservation Garden
OTAY WATER DISTRICT
BOARD OF DIRECTORS
PER-DIEM AND MILEAGE CLAIM FORM
Pay To: Jose Lopez Period Covered:
Employee Number: From: 03/01/25 To: 03/31/25
ITEM DATE MEETING PURPOSE / ISSUES
DISCUSSED MILEAGE
HOME to OWD OWD to HOME
MILEAGE
OTHER LOCATIONS
1 03/04/25 SBEDC South Bay Economic & Development Council Meeting
2 03/05/25 OWD Regular Board Meeting
3 03/07/25 CVCC Chula Vista Chamber’s 1st Friday Breakfast – GM Martinez Speaker
4 03/08/25 WCG
Water Conservation Garden’s Tomatomania Event
5 03/13/25 OWD Committee Agenda Briefing Meeting
6 03/17/25 OWD Engineering & Operations Committee
Meeting
7 03/18/25 COWU Council of Water Utilities Meeting
8 03/19/25 OWD Finance & Admin Committee Meeting
9 03/25/25 OWD Water Conservation Garden Meeting
10 03/27/25 OWD Board Agenda Briefing Meeting