HomeMy WebLinkAbout05-24-17 Board Minutes 1
MINUTES OF THE
SPECIAL MEETING OF THE
BOARD OF DIRECTORS
OTAY WATER DISTRICT
May 24, 2017
1. The meeting was called to order by President Robak at 3:05 p.m.
2. ROLL CALL
Directors Present: Gastelum, Robak, Smith and Thompson
Directors Absent: Croucher (due to a personal commitment)
Staff Present: General Manager Mark Watton, Attorney Jeanne Blumenfeld,
Asst. GM German Alvarez, Chief Financial Officer Joe
Beachem, Chief of Engineering Rod Posada, Chief of
Operations Pedro Porras, Chief of Administration and
Information Technology Adolfo Segura, 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 Smith, seconded by Director Gastelum and carried
with the following vote:
Ayes: Directors GasteIum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
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
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6. ADOPT RESOLUTION NO. 4336 TO APPROVE THE FY 2017-2018 OPERATING
AND CAPITAL BUDGET; APPROVE FUND TRANSFERS FOR POTABLE,
RECYCLED, AND SEWER; ADOPT THE SALARY SCHEDULE; APPROVE THE
SEWER RATES; ADOPT ORDINANCE NO. 564 AMENDING THE CODE OF
ORDINANCES APPENDIX A WITH THE PROPOSED SEWER RATE CHANGES
EFFECTIVE JANUARY 1, 2018; DIRECT STAFF TO DRAFT AND MAIL SEWER
RATE INCREASE NOTICES TO SEWER CUSTOMERS; AND DIRECT STAFF TO
DRAFT AND MAIL PROPOSITION 218 NOTICES FOR POTABLE AND
RECYCLED WATER CUSTOMERS
Chief Financial Officer Beachem reviewed the objectives of the workshop which
included:
Review of the FY 2017 - 2018 Strategic Plan
Presentation of a $98.2 million Operating Budget and $20 million CIP Budget
for approval
Request approval of the annual fund transfers
Request adoption of the Salary Schedule
Request approval of average rate increases of 7.5% for sewer rate increase
effective January 1, 2018
Adopt Ordinance 564 amending Appendix A with the proposed sewer rate
changes to be effective January 1, 2018
Direct staff to draft and mail sewer rate increase notices
Direct staff to draft and mail the Proposition 218 notices for recommended
water rate structure changes
Mr. Gary London of the London Group provided an overview of the economic
outlook for San Diego County for 2017 and beyond. He provided projections for
population growth, the unemployment rate, job growth and for residential
construction through 2023. He noted that Otay WD’s growth continues to outpace
the County with 13.8% estimated growth from 2010 to 2017 versus 8.2% for the
County. He noted that developers are building mainly multi-family units (92% of
new construction in 2016 was multi-family) and in 2017-2018 he projects that 70%
of residential construction will be multi-family developments. He stated that this
translates into smaller households and lots, which will reduce water use.
Presentations were provided by each of the Department Chiefs reviewing their
department budgets for FY 2018 which included the Capital Improvement Project
(CIP) budget for FY 2018 and the CIP plan for the next six (6) years and the details
of the operating budget. During the presentations there were questions asked by
members of the board and responses were provided by staff.
Director Thompson requested that a binder with a hardcopy of the budget workshop
documents be provided to board members for future budget workshops. He stated
because of the amount of information, it would be easier to review.
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Staff requested that the board:
Adopt Resolution No. 4336 to approve the FY 2017-2018 Operating and
Capital Budget
Approve fund transfers for potable, recycled, and sewer
Approve the sewer rate changes and adopt Ordinance No. 564 to amend
Appendix A with the proposed 7.5% sewer rate increase on all billings that
begin in calendaring year 2018
Adopt the Salary Schedule pursuant to CA Code of Regulations 570.5
(CalPERS enforced)
Provide direction to draft and mail sewer rate increase notices
Provide direction to draft and mail Proposition 218 hearing notices for
recommended water rate structure changes
A motion was made by Director Gastelum, seconded by Director Smith and carried
with the following vote:
Ayes: Directors Gastelum, Robak, and Smith
Noes: None
Abstain: Director Thompson
Absent: Director Croucher
To approve staffs’ recommendations.
7. CLOSED SESSION
The board recessed to closed session at 5:36 p.m. to discuss the following matter:
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section
54956.9:
1 CASE
The board reconvened at 6:30 p.m. and Attorney Blumenfeld reported that the
board met in closed session and a motion was made by Director Smith, seconded
by Director Thompson to initiate litigation against the City of San Diego. The motion
carried with the following vote:
Ayes: Directors GasteIum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: Directors Croucher
8. ADJOURNMENT
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With no further business to come before the Board, President Lopez adjourned the
meeting at 6:30 p.m.
___________________________________
President
ATTEST:
District Secretary