SLVWD Board Meeting Summary

February 19, 2026

Prepared by Mark Dolson for FSLVW

NOTE: Provided purely as a public service — NOT the official SLVWD Meeting Minutes.

Highlights:

  • Meter Shop Contract

  • South Pipeline Survey Award

  • Redwood / Echo Construction Contract

  • MME Redwood / Echo Construction Contract

  • Ecological Concerns Contract Amendment

  • Next Board meeting will be at 6:30 PM on March 5, 2026

Preliminaries

Four directors were present, with Director Layng attending remotely, and with Director Largay not present.

President Russ reported that the Board took no reportable actions in the just-concluded Closed Session.

There was one change to the agenda.  General Manager Jason Lillion announced that item 10a (Board Policy Manual) was being pulled and assigned to an ad hoc committee composed of President Russ and Director Fultz.  Director Smolley asked for further explanation.  He said he liked the idea but wanted to understand next steps because he had his own comments.  Jason responded that taking this action would allow for more in-depth discussion before bringing this item back to the Board. 

Director Layng said she was confused by this approach.  The Board Policy Manual went through the Administration Committee for edits, and it was going to pass, but it was paused so that the Board could hear Director Fultz's comments.  These comments have now been heard.  The Board has voted to remove Director Fultz from all committees, but has now been assigned to two ad hoc committees.  President Russ said Director Fultz had over 125 comments in the first round in September, over 70 of which were accepted by Staff and Legal.  For the most recent version, Director Fultz has come back with another 60 or 70 comments.  As a matter of efficiency, President Russ hoped to be able to meet with him and come to an updated mutual understanding.  The Brown Act prevented him from engaging in more discussion of this outside of a Board meeting.  He hoped that Director Layng found this to be a plausible way to proceed and get this wrapped up.  Director Layng said she didn’t really have a choice, so they should go right ahead.

There was no request for public comments on non-agendized topics.

Unfinished Business

None.

New Business

Meter Shop Contract

Operations Manager Jesse Guiver introduced this agenda item.  The current Bear Creek Estates generator, located on Forest Hill Drive, was placed into service in 1985.  This generator is critical to operations, as it provides backup power to both the Bear Creek booster pump station which supplies potable water to the Bear Creek storage tank, but also the Bear Creek Estates wastewater pneumatic lift station and transfer pump station.  These wastewater facilities convey waste from the collection system to the wastewater treatment plant.

An extended power outage at either facility would likely result in a wastewater overflow, making this one of the most critical generators in the District’s system.  Due to ongoing mechanical issues, age, and overall condition, our technician has recommended full replacement of the generator.  While repairs may temporarily extend the unit’s service life, this would only be a short-term solution.  Additionally, replacement parts for this model are obsolete, making them increasingly expensive and difficult to obtain.

Also, the existing PG&E power service at the Bear Creek Estates facility is outdated. As part of this project, a service upgrade will be completed, upgrading the current 200-amp, three-wire PG&E service to a 200-amp, four-wire service.  This improvement will  bring the facility into compliance with current PG&E standards, provide greater operational flexibility, and capacity for future equipment and system needs.

Staff obtained three quotes for this project:

  • Cupertino Electric: $340,951

  • Triad Electric: $141,316  (Note: $23,148 was subtracted from the original quote for additional equipment that is not included in the recommended contract.)

  • Mountain Services Company (recommended): $104,380

Staff recommended Mountain Services Company, not only because it is the most cost-effective option, but also due to their thorough assessment of the facility.

Jesse also shared some updates to the Board packet memo above.  He said Staff had determined that an additional $7900 would be needed to cover all permitting and engineering costs associated with the project.  In response to specific questions that were previously submitted, Jesse said:

  • No formal RFP was published for this project.  Contractors were required to attend an on-site visit with Staff, and they were encouraged to use their expertise to identify and recommend any upgrades or improvement they believed were appropriate.

  • There are no existing propane tanks at this site.  The current generator is fueled by diesel.  Staff prefers to transition to propane for lower emissions so as to meet Bay Area Air Quality Management requirements.

  • Staff does not believe a full engineering design package is necessary, particularly given the high cost of this service.  The Mountain Service proposal includes an option to facilitate and obtain all required permits.  This service is offered on an hourly basis and will not exceed $10,000 (included in the $112, 289).  Staff believes this will be sufficient.

  • Mountain Service will cover all necessary inspections.  They will coordinate with PG&E and District Staff, and also provide a one-year parts and labor guarantee.

  • Each of the main loads in the system will have its own dedicated power correction system.

  • The District has an in-house plan with a contractor on standby.

Director Layng appreciated this thorough presentation on a long-overdue improvement.

Director Fultz said his primary concern was with the generator, which is the lowest-end model in the Generac family (mostly known for its residential solutions).  Jesse said he believed Generac would be able to deliver.  22 of the District’s 25 generators are Generacs, and a member of the Engineering Committee approved this.  Triad also proposed a Generac.  The District maintains its generators monthly, and it hasn’t had any issues with recently installed Generacs.

Director Fultz asked who would be served by the 110 connections.  Jesse said this would include both the 56 Bear Creek Wastewater customers and also water customers who are in the Bear Creek pressure zone.  Director Fultz closed by saying that he hoped the Generac solution would end up working well.

Director Smolley confirmed some of Jesse’s responses.  He asked about the additional $7900, and Jesse said his lower initial estimate for this wasn’t sufficiently well-informed.

Director Russ appreciated the extra detail that Jesse provided, and he was encouraged by what he had read recently about Generac moving into the industrial space.

Director Fultz raised a possible concern about the generator pad.  Jesse said the existing pad would suffice.  He added that there is also enough room for the two 500-gallon propane tanks, which should be sufficient for 2-3 days of run time.

There was one public comment, but it was off-topic and the questioner was referred to Jason for an issue involving his request for a Will Serve letter.  District Counsel Gage Marchini sought confirmation that the Board had solicited public comment at the start of the Open Session, and he was [incorrectly] told that it had.

Director Smolley moved to approve the contract with the associated resolutions in the agenda packet.  President Russ seconded.  The motion passed 4-0.

South Pipeline Survey Award

Engineering Manager Garrett Roffe introduced this agenda item.  The South Zone Pipeline, which connects the South Tanks to the rest of Brookdale, was damaged in the CZU fires and an above-grade 2” line was installed in 2020 as a temporary fix.  The District is interested in installing a permanent replacement, a larger diameter below-grade pipeline, which would be eligible for FEMA reimbursement.

As a first step, the District will need a topographic survey of the alignment. The District issued a request for proposals, and received four proposals. All proposals demonstrated an understanding of the project and an experienced staff.  The numbers vary with the length of time estimated to complete the survey.  The current pipeline is trespassing on private property.  Staff recommends working with Dudek, using the right of way where possible, obtaining permissions where needed, upsizing to 8" minimum pipe diameter, connecting all services along the way, and installing fire hydrants.

  • Dudek Proposal: $41,660.00 4 weeks

  • Towill Proposal: $79,230.00* 7 weeks

  • NV5 Proposal: $82,883.00 10 weeks

  • Sandis Proposal: $96,000.00 14 weeks

Director Smolley wondered if Dudek was overlooking something.  Garrett said this is a time and materials contract, and Dudek is merely optimistic.  They may be planning to absorb any excess cost.  They have not done other survey work for us, but they are providing grant-writing services.

Director Fultz said he didn’t want to see a big change order at some future date.  He asked about potential FEMA reimbursement and the need for 8” pipe.  The answer was that this will close out the South project with FEMA, and 8” is the fire-flow requirement.

Director Layng asked how Dudek was performing for grant writing, and Environmental Programs Manager Chris Klier said they haven’t been used much but are doing fine.  Jason added that the District is using them on an as-needed basis for reviewing grants.

President Russ liked Dudek’s plan to use a helicopter and LIDAR.  He said the price was great, and he hoped it would hold up.

There was no public comment.

Director Smolley moved to execute the agreement with Dudek, and President Russ seconded. The motion passed 4-0.

Redwood / Echo Construction Contract

Engineering Manager Garrett Roffe introduced this agenda item.  He said the DWR Tank Replacement Project will protect and increase water supply storage for the San Lorenzo Valley Water District.  The Department of Water Resources’ 2022 Urban Community Drought Relief funding opened in December of 2022. On, January 19, 2023, the Board of Directors authorized the grant application, acceptance, and execution for the tank replacement for improved drought resiliency. The District was awarded $4.5 million from the grant and required to provide a cost-share of $1.5 million for the project to replace redwood tanks that are currently leaking and undersized with new 120,000-gallon bolted steel tanks.

Blue Ridge Tank design and construction is complete as part of the District’s 2021 CIP project with Sandis and JMB Construction, respectively. The engineering design of the remaining five tanks was awarded to Mesiti-Miller Engineering in the summer of 2024.  The construction of the Highland Tank Replacement project was awarded to Corcus Construction, Inc. at the October 16, 2025 Board of Directors meeting in an amount not to exceed $1,033,099.

Garrett added that the District only ended up receiving a single bid (from Anderson Pacific for $3,524,524 which is $264,964 below the engineer’s estimate).  The District rejected a late bid for $3.7 million.  Other potential bidders declined to submit bids due to concerns such as logistics, location, and required timeline.  The District is proposing a 300-day contract.  This will give the contractor ten days to execute.  If the contract can be awarded by March 6th, there will be 300 days left.  There are logistical reasons that this site is significantly more expensive than, say, the Highland Tank site.

Director Fultz was troubled by the 70% increase in cost over the Highland Tank, and he was unsatisfied with Garrett’s explanations.  He said he was never comfortable with single bids, and he suggested that it should be possible to get a time extension.  Garrett said that twenty contractors attended the pre-bid meeting, and delaying the project would only cause the cost to increase.

President Russ sought assurance that the project was adequately insured.  Director Layng said she was happy to see that this project would not require any traffic control.

Director Fultz suggested that the District had gotten itself into a time crunch and would ultimately need to request an extension in any event.  He said he couldn’t support this particular project due to the limited bidder response.

There was no public comment.

Director Smolley moved to approve the contract and to authorize change orders only up to $100,000 (rather than the $200,000 originally suggested).  President Russ seconded.  The motion passed 3-1, with Director Fultz opposed.

MME Redwood / Echo Construction Contract

Engineering Manager Garrett Roffe introduced this agenda item.  In the previous agenda item, the Board approved the award for construction of Redwood Park & Echo Tanks to Anderson Pacific Engineering Construction, Inc. in an amount not to exceed $3,524,524.  Garrett reminded the Board that Mesiti-Miller Engineering is the Engineer of Record for Redwood Park & Echo Tanks and will therefore need to be an active participant during construction.  Mesiti-Miller Engineering will be responsible for responses to contractor requests for information, submittal reviews, participation in weekly construction progress meetings, and site observations at critical construction milestones.  Staff therefore recommended that the District enter into a professional services agreement with Mesiti-Miller Engineering, Inc (MME) for construction support of Redwood Park & Echo Tanks in an amount not to exceed $127,102.

Director Layng had no questions.  Director Fultz said this felt like hiring a full-time person for six months, and this seemed excessive to him.  Garrett said Staff plans to limit MME’s time on our projects as much as possible. They will participate remotely in weekly or every-other-week project meetings.  They originally requested $152,000, and they lowered this in discussion.  He further explained that it is conventional to have the engineer provide this oversight rather than Staff.

Director Fultz suggested that maybe the District’s RFPs should cover the entire process to avoid these kinds of charges late in the project when the District no longer has a credible alternative.  He recommended changing the process so as not to pay more on the back end than necessary.  Director Smolley said the District knew a year and a half ago that it would ask for this, but it is now in a position where it would be risky to switch away from MME.  He said he would rather get the construction administration bid built in up front in the future.  Garrett wasn’t sure how much this would help.  He said the District requested an early estimate and then asked MME to remove the construction phase support from their initial bid.  This dropped it by $200,000.  In response to further questioning, Garrett said the Staff construction inspector would be involved, but the MME engineer would check specific milestones.

There was no public comment.

Director Smolley moved to execute the agreement with MME in an amount not to exceed $127,102.  President Russ seconded.  The motion passed 4-0.

Ecological Concerns Contract Amendment

Environmental Programs Manager Chris Klier introduced this agenda item.  At the September 4, 2025 meeting, the Board directed the General Manager to enter into contracts with Powers Forestry and Ecological Concerns Incorporated (ECI) for a Hazard Fuel Reduction project.  The project was funded through a California Department of Forestry and Fire Protection (CAL FIRE) Wildfire Prevention Grant pass-through from the Fire Safe Council of Santa Cruz County (FSCSC). The project was intended to create defensible space around 37 government-provided water supply infrastructure sites. 45 sites have been completed with the initial grant award of $171,125.

Staff was notified that CAL FIRE ended up with an excess, so additional funds from the grant have become available.  However, these would need to be spent before March 15th.  $34,448 in grant funding is available and would be fully reimbursed.  The proposed project would provide clearing along the Peavine pipeline and Beaver Access Road and implement hazard tree removal at the Big Steel Tank and Lyon Water Treatment Plant.

ECI is available for this project and would utilize the rates charged for the original contract. Due to the tight timeline and quality of their work on the original project, staff propose amending the contract with ECI to implement the additional work.

Chris further explained that he had learned from Ecological Concerns that they don't have the skill set for some of the more advanced tree removal.  Staff is proposing to split the money between Powers Forestry ($9000) and Ecological Concerns ($25,000).  The project will only proceed if CAL FIRE issues formal approval.  This is still pending.

The Board was happy with Chris’s work and with this proposal.

There was no public comment.

Director Fultz moved to approve the contract, and Director Smolley seconded.  The motion passed 4-0.

Consent Agenda

There was one item on the Consent Agenda:

a.     Board Meeting Minutes 2.5.26

This item was accepted without discussion.

District Reports

Financial Status Report for December 2025

Director Fultz thanked Finance Manager Cheri Freese for breaking out the reserves per his previous request.  He asked about the $2 million currently in a Wells Fargo checking account.  Cheri said she had reduced this amount from $3.3 million because the District doesn’t need this much in a checking account.  She said she was now doing a cash flow analysis and hoped to get the amount down closer to $1 million.  Director Fultz said he was reading about public funds interest checking accounts with interest rates up to 2%.  Cheri said she looked into this and was expecting to learn more at a conference next week.


Written Communications

There were no written communications.

Board Comment

None.

The meeting was adjourned at 8:15 PM.