Matthew Bartolome

The board meeting addressed several key items, including a vote on a director's remote participation due to a medical emergency. The board engaged in a closed session regarding anticipated litigation and subsequently authorized the General Manager and General Counsel to begin settlement negotiations with external parties. Additionally, a presentation on a third-party transfer analysis was deferred to a future workshop meeting.

The committee reviewed key activities from Metropolitan Water District committee and board meetings, focusing on the approval of the 2027 and 2028 biennial budget and rates, which include annual increases of 6.2%. Significant actions included appropriating $875 million for the Capital Investment Plan, authorizing an expansion of the Operational Shift Cost Offset Program, and receiving presentations regarding a Memorandum of Understanding for interstate water transactions and Pure Water Southern California program implementation. Discussions also covered Colorado River Basin operational guidelines, drought mitigation strategies, and the appointment of an Ad Hoc Committee on Executive Performance.

The Board of Directors held a retreat to discuss several key topics including a review of outcomes and actions from prior board workshops, a summary of past and anticipated board meeting agenda items, and an overview of the Metropolitan Water District of Southern California's imported water delivery system and rate impacts. The meeting included discussions on the long-term critical path for rate structure decision-making, including demand forecasts, water sales projections, and disruptive factors. Additionally, the Board reviewed opportunities for alternative revenue and cost savings, such as energy storage, lease agreements, grant funding, and potential rate designs for the 2025 calendar year.

The Board of Directors and its committees addressed several key initiatives. The Imported Water Committee discussed draft work plans and Metropolitan Water District treatment cost recovery. The Administrative and Finance Committee approved the Treasurer's report, cybersecurity grant applications, tax apportionment distributions, an interim rate redesign, and confined space rescue service contracts. The Water Planning and Environmental Committee reviewed the Water Conservation Garden's midyear report and the Water Shortage Contingency Plan. The Legislation and Public Outreach Committee adopted support positions on various state and federal bills. Additionally, the Board honored retiring directors and appointed new members, and reviewed securities law disclosure and financial policies.

This document, presented at a Board Retreat, serves as a comprehensive historical overview informing future strategic direction for the San Diego County Water Authority. It articulates three critical pillars of organizational stability: Asset Investment & Management, Water Demands, and Rate Structure & Finance. The strategic takeaways emphasize the legacy of robust decisions ensuring water supply reliability, successful organizational adaptation through investments and new financial strategies, and the imperative for developing innovative financial approaches to navigate future uncertainties.