HomeMy WebLinkAbout4 Draft Minutes, 04-24-24 Special 1
INUTES OF THE
SPECIAL BOARD MEETING OF THE
BOARD OF DIRECTORS
OTAY WATER DISTRICT
April 24, 2024
1. President Lopez called the meeting to order at 12:45 p.m.
2. ROLL CALL
Directors Present: Croucher, Keyes, Lopez, Robak, and Smith (Arrived at 1:05 p.m.)
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, Chief of
Operations Andrew Jackson, Asst. Chief of Finance Kevin
Koeppen, District Secretary Tita Ramos-Krogman and others per
attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF THE AGENDA
A motion was made by Director Croucher, seconded by Director Keyes and carried with
the following vote:
Ayes: Directors Croucher, Keyes, Lopez and Robak
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. 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.
WORKSHOP
6. 2024 ECONOMIC OUTLOOK UPDATE FOR SAN DIEGO COUNTY PREPARED BY
LONDON MOEDER ADVISORS
Mr. Gary London and Mr. Robert Martinez provided a PowerPoint presentation to the
board that included outlooks for global, United States, California, San Diego County, and
south San Diego County economies. He also provided projections for the Otay Water
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District that included new residential construction, commercial pipeline delivery, and
pipeline construction. Mr. Gary London, Mr. Robert Martinez, and district staff responded
to comments and questions from the board.
7. DISCUSSION OF THE FISCAL YEAR 2024 BUDGET KEY FIGURES AND
ASSUMPTIONS
Assistant Chief of Finance Kevin Koeppen provided an agenda for the budget workshop.
A PowerPoint presentation was provided to the board by department chiefs and staff that
included budget objectives, budget timeline, budget process, Proposition 218 – Water
and Sewer, challenges, strengths and District actions, Strategic Plan strategies, Key
Assumptions, Financing Plan, and Conclusion, and the development of the Capital
Improvement Program for FY 2025 to FY 2030. Chief Financial Officer Joe Beachem
indicated that staff would ask for the board’s approval of the proposed budget at the June
5, 2024, board meeting.
In response to questions and comments from Directors Croucher and Smith,
Mr. Beachem staff stated that other costs indicated in the presentation are related to
100% pass-through of supplier-related costs from CWA, city of San Diego, County of San
Diego (sewer), and SDG&E.
Director Smith inquired if the district differentiates outside/other costs and the district’s
costs. Customer Service Manager Andrea Carey stated yes and Mr. Koeppen indicated
that the district’s website provides information and details about increasing water rates.
Communications Officer Tenille Otero provided additional details of water rate information
posted on the website.
General Manager Jose Martinez highlighted that CWA Rate Increase Drivers include
Metropolitan Water District’s (MWD) rate increases.
In response to comments and questions from Director Robak, Director Smith discussed
MWD’s efforts to minimize its rate increases.
Director Croucher inquired about cost impacts from SDG&E. Mr. Koeppen stated that for
fiscal year 2024 the district projected a 10% increase to SDG&E costs. However, the
increase is currently at 20%-30%.
Staff responded to board members’ inquiry and comments about Prop 218 Notices.
General Manager Martinez noted that the Cross Connection Control Policy Handbook is
an unfunded regulatory mandate by the State Water Resources Control Board, which will
impact the district’s budget and approximately 3,200 customers. Staff responded to
additional questions from board members regarding this unfunded mandate.
Chief of Operations Andrew Jackson discussed the on-going assessments for pump
stations and provided information on the Pump Station Condition Assessment Program.
He responded to several comments and questions from Directors Croucher and Smith. It
was noted that the goal for this program is to have no surprises and be proactive in
predicting failures instead of reacting to failures.
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Engineering Manager Beth Gentry discussed the district’s Capital Improvement Program
(CIP) for fiscal years 2025 to 2030 and responded to questions about the CIP Six-Year
Budget Look Forward. In response to a question from Director Croucher, Ms. Gentry
stated that the district regularly reviews its master plans to update CIP projects that
are/are not needed. Director Smith suggested that staff should consider establishing a
simple list of CIP projects and the number of staff and work that is needed to maintain
projects. Staff noted that there is an annual process of reviewing staff positions that are
needed.
Assistant Chief Financial Officer Kevin Koeppen discussed Key Assumptions and
Financing Plans for the fiscal year 2025. He shared his concern about Proposition 218
that may impact the district’s budget. Director Croucher requested that a committee
meeting be held to discuss rate increase notices before they are mailed out. Mr. Koeppen
responded to additional questions from the board.
RECESS TO CLOSED SESSION
8. CLOSED SESSION
The board recessed to closed session at 3:32 p.m. to discuss the following matters:
a) CONFERENCE 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
RETURN TO OPEN SESSION
9. 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 3:56 p.m. and General Counsel Dan
Shinoff reported that the board took no reportable actions in closed session.
10. ADJOURNMENT
With no further business to come before the Board, President Lopez adjourned the
meeting at 3:56 p.m.
President
ATTEST:
District Secretary