SLVWD Board Meeting Summary
October 1, 2026
Prepared by Mark Dolson for FSLVW
NOTE: Provided purely as a public service — NOT the official SLVWD Meeting Minutes.
Highlights:
Service Connection Policy
Public Utility Protection Policy
Repaving Repairs for Graham Hill and Irwin Way
Six-Mile Access Road Shaded Fuel Break
Configuration of Addendum #1 for General Manager Agreement
Next Board meeting will be at 6:30 PM on October 15, 2026
Preliminaries
Directors Largay and Layng were absent.
There was no preceding Closed Session.
Director Fultz requested that Agenda Item 6e (Olympia and Zayante Land Management) be moved to the next meeting (10/15) so that more directors can be included in the discussion. President Russ accepted this.
A number of local residents were present (and others were apparently unable to access the meeting online) to comment on a shared concern. The primary representative was the person who sold the property for the Redwood Park Tank near the intersection of County Club Drive and Dundee Avenue in Ben Lomond. (This project replaces the aging, leaky, redwood Swim Tank with a 125,000-gallon steel tank built on an upgraded concrete ring foundation.) He called attention to what he saw as a number of severe deficiencies in the District’s Mitigated Negative Declaration, especially concerning tank height and associated aesthetics and potential drainage issues on Dundee Ave.
President Russ said the resident’s letter would be published along with the meeting minutes. Director Smolley said the resident had also shared pertinent information this evening that was not included in the letter. He said the Board was unable to comment on non-agendized topics, and all relevant information should be submitted to General Manager Jason Lillion.
Unfinished Business
None.
New Business
Service Connection Policy
Management Analyst Jen Torres introduced this agenda item. Her memo in the Board packet noted that the District regularly receives requests for new service connections, will-serve determinations, accessory dwelling unit (ADU) service requests, meter relocations, fire service connections, and other service-related matters. Historically, staff has administered many of these processes through established practices and expertise but has not formally documented them.
Consistent with prior Board direction to document District business processes and reduce reliance on institutional knowledge, staff has now developed a Service Connection Policy, Administrative Procedure (AP-9), and Service Connection Processing Procedure (SOP 9.1). Together, these documents establish clear requirements, responsibilities, and workflows for administering service connection requests. District legal counsel reviewed the proposed documents and revised them to ensure consistency with applicable legal requirements and District authority. The documents have also been reviewed by the Administration Committee.
Director Smolley questioned whether the $300 charge was sufficient to cover the time required for the District to conduct its review. He suggested adding a sentence or two to allow for prompt notification of exceptions in which the District might bill for the actual time required.
Director Fultz strongly agreed. He praised the new policy and the work that went into it, but he didn’t think $300 would ever cover the District’s actual cost. He said there should be a higher, non-refundable fee that should be credited to the applicant if their request moves forward. He said he wasn’t prepared to vote this evening, but he thought the policy was very close to being final.
President Russ agreed as well. He asked how many requests the District gets in a typical year, and the answer was around five. President Russ directed staff to iterate on this and bring it back to the Board.
There was no public comment.
Public Utility Protection Policy
Management Analyst Jen Torres introduced this agenda item. She said the District adopted the existing Public Fire Protection provisions in 2016 as part of the Policies and Procedures Manual. As part of the District's ongoing policy review and consolidation efforts, staff evaluated those provisions to ensure they reflect current operational practices, enforcement needs, and the District's responsibility to protect critical public infrastructure. The review identified opportunities to clarify authorized hydrant use, strengthen protections against unauthorized water use and system tampering, improve enforcement and cost recovery provisions, and establish clearer authority to protect District facilities and water supplies during emergency conditions. The proposed policy consolidates these updates into a comprehensive framework.
President Russ asked if the District had encountered any actual theft, and the answer was that there has been a little from hydrants.
Director Fultz asked if there was a review that specifically looked for lessons learned from the CZU Fire. For example, the District performed a number of shut-offs, and sprinklers on roofs were a particular concern. He said the District needs to promote improved public understanding. It also needs to be attentive to legal liability.
Director Smolley agreed. He said the District should do a PSA. He liked the rest of the policy.
President Russ directed staff to address the need for community-facing messaging and to work with the Administration Committee.
There was no public comment.
Repaving Repairs for Graham Hill and Irwin Way
District Engineer Garrett Roffe introduced this agenda item. He said the County contacted the District on April 3, 2026, and invited it to participate in a repaving project on Graham Hill Road in order to simultaneously address failing trench seams that the District is responsible for. The District declined to join the paving project and instead proposed to repair the trench seams on Graham Hill Road as a separate project. The County accepted the District’s solution to repair the trench seams and provided the mastic crack seam repair specification used in the bid documents.
On June 30, 2026 the County of Santa Cruz contacted the District and requested full width paving repair on Irwin Way related to a repair of a customer’s leaking service line performed by the District. The District agreed to complete the pavement repairs to Irwin Way as requested by the County and include the work with the Graham Hill Road trench seam repairs for General Contractors to bid as one contract.
Four bids were received, ranging from $53,096 to $95,500. The proposed construction authorization totals $63,096, consisting of the $53,096 construction contract and a $10,000 allowance for change orders. Staff also requested a budget amendment increasing appropriations by $63,096, funded from operating reserves, to cover the remaining amount.
President Russ commented that it would be nice for the Board to see the full decision matrix. Garrett said, for this kind of project, the primary concern was simply the lowest bid. Director Smolley said the low-bidder makes sense unless there is some other relevant consideration. He praised Garret for getting an alternate solution that's half the cost of the County's offer. He asked if the District has notified the County and received their agreement? Garrett said it had. Director Smolley asked if this project was weather dependent, and Garrett said it was.
Director Fultz encouraged the District to look at policies around pavement in neighborhoods.
There was no public comment.
Director Smolley moved to: (1) Execute the Notice of Award for the Graham Hill Road and Irwin Way Pavement Repairs to ABSL Construction, Inc. for the bid price in an amount not to exceed $53,096; (2) Authorize the General Manager to execute change orders in an amount not to exceed $10,000, and (3) increase FY 2026-27 Water Fund appropriations in the Operations department by $63,096, funded from operating reserves. President Russ seconded. The motion passed 3-0.
Six-Mile Access Road Shaded Fuel Break
Environmental Programs Manager Chris Klier introduced this agenda item. Chris said the District’s 5-Mile Shaded Fuel Break project is expected to begin in October. The plan is to create shaded fuel breaks extending up to 30 feet on either side of three access roads to the 5-Mile Pipeline trail, totaling over one mile in length. The project is intended to act as a break in fuels to impede the spread of wildfires, provide a place for fire crews to access the 5-Mile Pipeline shaded fuel break or hold a line, and increase the District’s access to the pipeline trail.
The shaded fuel breaks will be implemented following specifications developed by a Registered Professional Forester (RPF). The work involves both manual and mechanical treatment using hand tools or mechanical methods. Biomass will be treated onsite and chipped/masticated to specifications.
A Request for Qualifications (RFQ) to select a contractor for this project closed on September 18, and a total of nine Statement of Qualifications (SOQs)/proposals were submitted. The proposed costs ranged between $70,000 and $327,042.
Director Fultz said he liked that the work was being performed with local resources.
Director Smolley asked, if the District decides not to construct the Five-Mile Pipeline, does it still need to do this work? Chris said the work was needed if any of the pipeline in this area was going to be constructed. He also said the access roads would still be used even if there is no construction at all. Lastly, he observed that the cost is fully covered by a grant.
Director Smolley asked if Cal Fire or local fire departments support this, and Chris said they did.
President Russ asked if the access roads were all on District land. Chris said they were. Director Fultz added that the District has easements to gain access to the roads themselves.
There was no public comment.
Director Smolley moved to direct the GM to enter into an agreement with Sunderland Tree Service in the amount of $70,000 for the 5-Mile Access Roads Shaded Fuel Break project. President Russ seconded. The motion passed 3-0.
Configuration of Addendum #1 for General Manager Agreement
Board President Russ introduced this agenda item. The full addendum is included below.
President Russ said he was super pleased with Jason and what he has done here. He said this package gives Jason an opportunity to earn another 5% on his base salary thru June 30, 2027 by achieving seven categories of performance goals, which are not easily obtained. He said the Board greatly appreciated all of Jason’s (and the Senior Staff’s) efforts. He said the Board spent a lot of time on this, and he thought it was time to approve it.
Director Smolley agreed. He said there had been a lot of discussion, and he liked what they had come up with.
Director Fultz said this was the first time in his memory, dating back to 2010 or 2012, that the Board had this level of specificity for the GM. He saw this as a big step and one that future Boards should replicate. The objectives provide Jason with a road map and a focus; they can change each year. Director Fultz gave President Russ and Director Layng a lot of credit for driving this home, working with Jason, and bringing something to the Board that is really quite impressive and much needed.
There was one public comment. Cheryl Adams (who will be seated as a Board member in December) said she was very much in favor of this. She liked the measurable goals and outcomes and the opportunity this presents to Jason. However, she had questions about how she was going to assess these as a Board member this coming June. She was concerned that Jason would only have nine months to achieve these goals, and she was concerned about possible external mitigating factors that could come into play (e.g., disruptions due to a Super El Nino). Normally, for employment goals, she wanted to see specific measurable objectives. Some of the listed objectives are measurable, but others are not. For example, she was happy to see the Strategic Planning objective, but she wanted more detail about how this will be pursued (e.g., does Jason engage stakeholders to get input and public review? what about community outreach and engagement?). She had similar concerns about the capital improvement objective (e.g., how are workforce relations measured? how are training targets specified? how will Jason maintain a safe work environment?) It was unclear how the Board will assess the outcomes in June, 2027.
President Russ said Cheryl’s participation on the Board in 2027 will be welcome. He said it’s very hard to come up with consistent quantitative metrics, and the Board will have to give Jason some latitude.
Director Fultz said Board members spend most of their time talking about policy and not about how to implement it. He said the Board has historically not been good about measuring KPIs, and this will be an ongoing challenge. Some assessments will be qualitative. He urged Cheryl to look at this as an opportunity to improve further. He said previous Boards couldn't get from zero to one. The next Board can get it higher.
Director Smolley agreed that metrics were lacking, but he said the Board discussed this and wasn’t willing to spend multiple additional months to try to get it to the next level. He agreed with Director Fultz that this is a good start, and the 2027 Board can improve on it.
President Russ presented a required oral summary prior to any formal Board action. He then moved to approve the addendum as read. Director Fultz seconded. The motion passed 3-0.
Consent Agenda
There were two items on the Consent Agenda:
a. Board Special Meeting Minutes 9.17.26
b. Board Meeting Minutes 9.17.26
These were approved by unanimous consent.
The meeting was adjourned at 7:45 PM.
GENERAL MANAGER PERFORMANCE GOALS (as % of base salary; 5% maximum potential)
1. Strategic Plan Completion (0.75%) Complete and present a comprehensive District Strategic Plan that establishes a long-term vision and measurable objectives for the organization.
Success measures include:
GOAL: Adoption of a Board-approved Strategic Plan by May 31, 2027.
Plan addresses the District’s core service areas: infrastructure reliability, financial sustainability, water supply resilience, customer service, workforce development, and regulatory/legal compliance.
Plan includes measurable objectives, implementation timelines, and performance metrics for each service area.
Plan provides a minimum 5-year vision with supporting short- and mid-term priorities, built on a rolling capital and financial planning horizon (2-year committed budget, 5-year pro forma budget).
Plan states the Board’s position on regional consolidation options (e.g., ongoing discussions with neighboring districts) so strategic direction is unambiguous going forward.
2. Water Supply Resiliency & Water Rights (0.5%) Advance implementation of the District’s long-term water supply strategy.
Success measures include:
Complete a determination on whether an Environmental Impact Report (EIR) is required for Conjunctive Use Program changes, with a Board recommendation, by December 31, 2026; complete the EIR only if determined necessary.
Advance Conjunctive Use Program implementation by May 31, 2027.
Establish the ability to transfer water between the North and Felton systems under non-emergency conditions, with a target completion date set jointly with the Board.
Continue restoration of surface water supplies impacted by the CZU Fire and develop groundwater recharge / strategic well-resting plans.
Advance Felton water rights strategy to maximize operational flexibility.
Report measurable progress on long-term water supply reliability to the Board semi-annually, using metrics agreed with the Board (e.g., supply diversification, storage capacity, drought reserve margin).
Secure California state re-affirmation of the Felton Water Permit (approximately 1,059 acre-feet per year) by March 31, 2027.
3. Capital Improvement Program Execution (1.0%) Execute the District’s Capital Improvement Program, including reducing deferred maintenance.
Success measures include:
Develop and maintain a multi-year CIP schedule (Gantt chart or equivalent) covering the full CIP portfolio; demonstrate successful use of the integrated schedule through May 31, 2027.
Spend COP proceeds within 3 years of receipt, consistent with bond covenants, to avoid penalties (and specifically, spend 30% of COP by June 30, 2027).
Reduce the deferred maintenance backlog by an amount set once the current backlog baseline is confirmed (target period: FY 2026-27).
Fully integrate financial cost and schedule tracking for each CIP project task.
Implement a comprehensive tank maintenance and rehabilitation program.
Coordinate project sequencing across permitting, CEQA, water rights, grant requirements, and financing.
Maintain Paygo (self-funded) financing as a proactive share of CIP funding.
4. Workforce & Labor Relations (0.75%) Strengthen employee performance management and workforce development while successfully managing labor negotiations.
Success measures include:
Maintain harmonious relations with both bargaining units and provide monthly updates to the Board regarding any ongoing labor negotiations.
Incorporate measurable performance metrics into the employee evaluation system.
Increase annual training hours and professional development participation relative to the prior-year baseline (baseline and target to be confirmed using FY 2025-26 data) by March 31, 2027.
Expand cross-training, professional certifications, and mentoring/succession planning.
Maintain a safe work environment: track and report the OSHA recordable incident rate and lost-time injury rate, with a goal of zero lost-time incidents, and maintain a clean and healthy office and work environment in all District facilities.
Improve Board and community understanding of total employee compensation and long-term labor costs.
5. Financial Performance & Affordability (1.25%) Maintain financial performance consistent with Board-approved budgets and model projections, while keeping rates fair and collectible.
Success measures include:
Actual margins and expenses track within a tolerance band (e.g., within 5%) of the adopted financial model projections (as of March 5, 2026).
Analyze and create an accurate financial model of all District finances, including cost escalation parameters, multi-year CIP spending projections, salary and “all-in” fringe benefits, and provide quarterly reports to the Board.
Improve meter accuracy and complete a timely-replacement implementation plan, including an economic analysis of accelerated replacement districtwide, by March 31, 2027.
Complete the annual validated water loss audit (required under California SB 555) and reduce non-revenue water from the confirmed baseline by an agreed percentage by May 31, 2027.
Improve collection of delinquent accounts by an agreed percentage or dollar amount, paired with continued availability of a low-income/hardship rate assistance program. Propose a shut-off policy for habitual delinquent accounts.
Maintain reserves per the Board-approved Reserve Policy, replenishing any reserves used.
6. Technology, Innovation & Cybersecurity (0.5%) Identify and implement technologies that improve operational efficiency, reduce long-term costs, and protect critical systems.
Success measures include:
Evaluate migration of SCADA communications to more cost-effective technologies by December 31, 2026, and begin implementation by March 31, 2027.
Complete an operational technology / cybersecurity risk review alongside the enterprise risk assessment, using an outside consultant, by March 31, 2027.
Improve GIS data completeness, accuracy, and asset recordkeeping by May 31, 2027.
Develop field technology needs, including mobile access to customer and asset information.
Assess opportunities for responsible use of artificial intelligence to improve administrative and operational efficiency.
By April 2027, deliver one comprehensive Board presentation with recommendations, implementation priorities, and cost-benefit analyses.
Adopt a security framework/architecture and identify controls, milestones, and timing for audit performance, using CIS as a benchmark framework.
Create a district-wide communications plan (e.g., mesh radio network, satellite, cellular) that will provide robust communications during both normal operations and disasters, with milestones and budgets for implementation and testing.
7. Customer Experience & Board/Community Engagement (0.25%) Deliver responsive customer service and maintain clear, regular communication with the Board and community.
Success measures include:
Respond on-site to emergency calls (no water, main breaks, sewage backups) within 2 hours, 90% of the time; acknowledge routine service requests within 2 business days.
Billing accuracy: maintain a billing accuracy rate of at least 99% (bills issued without a required correction or adjustment).
Maintain compliance with public meeting, records-request, and (where applicable) Proposition 218 rate-notice requirements.
Infrastructure transparency: publish a public-facing infrastructure progress update (website page or newsletter) at least twice per year, summarizing Capital Improvement Program project status, milestones, and budget-to-actual in plain language for customers — including progress on distribution mainline replacement (linear feet/miles of aging main replaced year-to-date and cumulative progress toward the CIP mainline replacement plan).
Drinking water safety transparency: proactively distribute the annual Consumer Confidence Report (CCR) to all customers by the July 1 legal deadline, in plain- language and easy-to-find form, and publicly report any water quality exceedances within the applicable regulatory notification timeframe.
Water source transparency: publish the District’s water source mix (e.g., percentage supplied by groundwater vs. surface water sources) on a rolling trailing-12-month basis, updated at least quarterly, as part of the public infrastructure/water quality reporting.
Provide the Board a standing quarterly progress report across all goal categories.