Otay Water District’s recently approved $100 million operational and capital improvements budget includes pay raises for all five water board members, making what board members say is a “minimal impact” to the budget.
At the June 6 OWD meeting, directors voted 4-1 to increase the per diem rate for attendance at regular meetings, pre-approved meetings and committee meetings.
Per diem rates increased from $100 to $145 on July 1, still putting OWD below per diem costs compared to other water agencies throughout San Diego County.
For instance, Sweetwater Authority, OWD’s neighboring water district, gives its directors a $150 per diem for meetings attended having to do with water business.
This is OWD’s first raise since 2004 when the then-board reduced the rate from $145 to $100.
Board President Tim Smith said after examining per diems of other water agencies around the county, the OWD’s per diem rate was “much lower and inconsistent” compared to the other water agencies.
He said the water district came up with different options to keep the rate competitive among other water agencies in the county.
One of those options, he said, was increasing the per diem rate to 5 percent per year — which is allowed by law — for 14 years, totaling a per diem of $170 at the end of those 14 years. The second option — the one the board selected — was to restore the $145 per diem rate from 14 years ago; and the third choice was to keep it at $100.
“It seemed like (restoring the $145 per diem) was a fair middle ground for the agency, for the per diem,” Smith said.
Out of OWD’s $100 million budget, Smith said the amount set aside for payment of per diem is around $100,000 for all five board members.Board members cannot exceed more than 10 meetings per month.
“The amount of money that board directors make is a very small amount,” Smith said. “It’s really a public service that we are doing.”
Board members say ratepayers should not expect an increase to their water rates as a result of the pay hike.
Energy costs and the cost of water from the water authority have the biggest financial impact on water rates, they say.
“(Per diems) has almost no impact on the (water) rate,” said vice-president and Division 2 Director Mitch Thompson.
Thompson, who represents a lower-income district, said an increase in compensation could attract a better pool of candidates for the water board.
“The reason I voted for (a per diem increase) was I felt that it was a way to make sure that we can get decent board members,” he said. “I’ve seen on many water boards where the quality of the board is not high enough.”
District 4 Director Hector Gastelum, who’s in the midst of a mayoral campaign in Chula Vista, does not buy into the argument that a higher compensation would attract better candidates.
“When I decided to run I was doing it for service and whatever I get; I get,” he said. “It’s public service. We are doing this because we care more about the community and trying to bring positive change. I had no idea what the pay was or if there was any pay.”
Gastelum was the only vote against receiving a pay raise.
“I don’t think it’s ethical for elected officials to vote themselves pay raises,” he said.
Despite voting no, Gastelum said he will still select to get the raise because “it would cause too much confusion with the accounting” if he declined the raise and kept the $100 per diem rate he had previously received.
Gastelum said constituents or the general manager should be the ones determining raises, not board members.
According to the OWD’s board expenses for Fiscal Year 2016-2017 when the per diem rate was at $100 per meeting, Gastelum made about $10,775.02; Division 5 Director Mark Robak earned $8,847.94; Thompson received $8,022.43; Smith got $4,448.58 and Division 3 Director Gary Croucher walked away with $1,595.00.
In addition to receiving compensation, OWD directors also receive health benefits.
None of the board members use the water board as a primary source of income.
Smith makes his living as an adjunct professor at San Diego State University. Thompson is an independent real estate investor and property owner. Robak is a commercial broker. Croucher is the assistant fire chief at Cal Fire San Diego. Gastelum works in the real estate business.
At the same meeting last month, the board approved an item for paid travel when arriving at a water related conference or meeting a day early.
