SLVWD Board Meeting Summary
June 4, 2026
Prepared by Mark Dolson for FSLVW
NOTE: Provided purely as a public service — NOT the official SLVWD Meeting Minutes.
Highlights:
Quarterly Reports
On-Call Inspection Contract Award
Camp Krem Rental Agreement
Balance Hydrologics Agreement
Call for Elections
Water Station for Ben Lomond Alliance
Next Board meeting will be at 6:30 PM on June 18, 2026
Preliminaries
Four directors were present. Director Layng was absent.
President Russ said the Board took no reportable actions in the just-concluded Closed Session.
There were no changes to the agenda.
There were no public comments on non-agenda topics (no members of the public were present).
Presentations
Quarterly Reports
Finance
Finance Manager Cheri Freese presented this report. The District has about $15.6 million in cash, $2.4 million of which is restricted, and $10.5 million of which is in its reserve fund (split between operating reserve, emergency reserve, and capital reserve). Three quarters of the way through the current fiscal year, the District has $11.3 million in revenue as compared to $16.0 million budgeted for the entire year. For Operating Revenue, Cheri reported $10.1 million vs. $14.3 million. The District derived $57,000 from the sale of meters compared to $5000 in the annual budget. It received $580,000 in property taxes vs. a budgeted $1.1 million. Operating expenses were $6.2 million as compared to $10.4 million in the budget, most notably due to lower than anticipated spending on salaries & benefits and on contract/professional services.
Cheri reported 138 accounts currently enrolled in the Rate Assistance Program (RAP). The program has a budgeted capacity of 146, and only 67 accounts renewed from the previous year. The District completed financing of its $16.5 million COP bond by May 7th. Based on subscription levels during the initial order period, it was able to lower the yields of the 2046 maturity by 4 basis points and the 2049 maturity by 3 basis points. This saved the District about a million dollars in total debt service cost.
Director Fultz requested a deeper dive into the COP Bond at the next Board meeting, and Cheri said Ken Dieker of Del Rio Advisors would be present to answer questions. Director Fultz also recommended that any remaining funds in the Lompico Assessment account be used for pipeline replacement as originally intended (rather than replacing pipes only on an as-needed basis). He further took issue with the classification of Santa Margarita Groundwater Association (SMGWA) payments as investments, arguing that they were closer to subsidies that didn’t serve the District well. He asked that SMGWA be placed on the Board agenda, saying he had repeatedly requested this. Lastly, he expressed concern that usage revenue is only at 66% as compared to the 75% that would be expected.
Environment
Environmental Programs Manager Chris Klier presented this report. Chris began by reviewing the status of five relevant grants:
· Bureau of Reclamation WaterSMART Small-scale Efficiency Grant Program – In Progress
$100,000 was awarded in December 2024 for 443 AMI meter replacements in Ben Lomond. The project started in late February 2026 and completed in early May 2026.
· Department of Water Resources - Urban Community Drought Relief Grant – In Progress
$4.5 million was awarded to construct 6 fire/drought hardened water tanks. Environmental permitting has been completed for all tanks
· CalFire Fire Prevention Grant - In Progress
$902,000 was awarded in February 2026. Phased work starting in May 2026: Hazard tree removal along the 5-Mile Pipeline. Shaded fuel break along a portion of the 5-Mile Pipeline and access routes. Defensible space around critical water infrastructure
· CAL FIRE – 2022 Fire Prevention Grant (through Fire Safe Council) - Closed out
Fuel reduction around critical water infrastructure. Project started in late October with two contractors. Created defensible space around 37 infrastructure sites so far. Now nearing completion with a few more sites left.
· DWR IRWM Grant – Pumphouse Hardening – In progress
Awarded $305k for 9 pumphouse structure hardening projects. 5 roof replacements low bid received for $224,250. Pursuing completion of roof replacements in-house
Chris next discussed the District’s Conjunctive Use Plan (CUP). He identified three phases: Water Availability Assessment, the plan itself (CUP), and CEQA documentation. He said the District was currently working on updating previous assessments for the WAA and the CUP based on the recent decision to no longer include any use of Loch Lomond water. This eventually led to a lengthy Board discussion when Director Fultz asked why Chris had made no mention of the Environmental Impact Report (EIR) that the Board committed to three years ago in response to demands from City of Santa Cruz Water. Chris said it was possible that the CEQA documentation could be satisfactorily completed without an EIR, and he noted that City of Santa Cruz Water was currently under new leadership. However, this topic has not been explicitly discussed with Santa Cruz. Directors Smolley and Fultz observed that the two of them were the only individuals with first-hand experience of the District’s previous interaction with City of Santa Cruz Water. Santa Cruz made it very clear at that time that an EIR would be necessary. Director Smolley eventually requested that this be brought back to the Board as a stand-alone agenda item. Even if the cost is less than $30,000 the feeling was that the Board should be involved.
Chris next reported on the 5-Mile Hazard Tree Mitigation and Shaded Fuel Break. The goal is to mitigate about 650 hazardous trees and implement a shaded fuel break along 2.5 miles of pipeline and 1 mile of associated access roads. He said the CCC would be starting work in mid-June and finishing in about ten months. He said the District will hire a contractor for the access road treatments.
Chris next provided an update on Peavine Pipeline Replacement Permitting. Environmental Review is nearly complete, and the District will be filing a CEQA Notice of Exemption (NOE). This needs to include avoidance and minimization measures and an environmental analysis. A Jurisdictional Delineation must be sent to the U.S. Army Corps of Engineers for approval (because they need to affirm that this is outside the jurisdiction of official Waters of the U.S).
Director Fultz strongly questioned the need for the Jurisdictional Delineation, and Director Smolley asked where FEMA stood on this. Chris said FEMA has been completely nonresponsive. The Board’s biggest concern was that obtaining Army Corps of Engineers could introduce a substantial and unanticipated project delay. Director Smolley eventually asked Chris to bring this matter back to the Board with an expert risk assessment when this is the only remaining obstacle to beginning work on the project. Director Fultz pointed to a bigger issue around District project management and anticipating long lead times.
The next item in Chris’s presentation was the Sandhills Habitat Conservation Plan. Chris listed eight distinct chapters, the final four of which remain in progress. Chapter 5 (Conservation Plan) was completed and submitted in February. The plan now includes the Robson Homes mitigation. However, Chris reported that U.S. Fish & Wildlife has recently increased the complexity of their process while simultaneously reducing staff. Consequently, the District is now facing another potentially long delay.
Director Fultz reacted strongly to this. He called it completely unacceptable. He said the plan was supposed to be done in 2019, yet the District continues to tell the consultant they are doing a great job. This is the first time the Board is hearing that U.S. Fish & Wildlife approval is required. He blamed the consultant for massively failing to communicate this, and he blamed everyone around him for not wanting to confront her. Director Largay defended the consultant as the world expert in this habitat and said he would respond further when this item was on a Board agenda. He said the normal timeline for a Habitat Conservation Plan is 5-10 years.
Chris next reported on Integrated Pest Management Policy Effectiveness Testing. He said the District was testing feasibility and effectiveness of implementing organic vegetation management practices to control French Broom seedlings. 1x1 meter plots have been established in two locations with different growing conditions (soil texture, moisture retention, sun exposure) in order to compare seven treatments: No treatment (control), Hand pulling, Hoeing, Flaming, Horticultural vinegar*, FinalSan*, and Mirimichi Green PRO Weed Control*. Data is being collected for time and cost to implement, monthly broom covers, and monthly cover from other species. (The methods marked by asterisks were applied by a Certified Pesticide Applicator.)
Chris concluded his presentation by reporting on Olympia Watershed events, on annual rainfall measurements, and on networking, collaborations, and events. For the Olympia Watershed, the District partnered with Sempervirens Fund for volunteers and attracted 55 over the course of 6 events from August thru April. Rainfall is currently at 87% of annual average (vs. 81% last year).
Director Fultz had some accumulated comments. He said people are noticing substantial bill increases when their meters are replaced. He advised Staff to get out in front of this by explaining that the District has been undercharging with the old meters. He also questioned the efficiency of the laborers working on fire-hardening, based on his personal observations of work being performed around the Highland Tank. With regard to the Hazard Tree Mitigation, he said he thought the Board had discussed holding off on the Sweetwater section. He questioned the ROI of extending the pipeline in order to capture only 10% of the District’s surface water supply. Director Smolley agreed, saying this was worth questioning unless there was some benefit to other structures.
Lastly, Director Fultz questioned Chris in detail about the trail cameras installed in off-limits areas of the Olympia Watershed to monitor trespass. He learned that Chris was personally monitoring the video, and he suggested that it would be preferable to offload this to AI or someone more junior. He also questioned what value the District was deriving from this information. At this point, President Russ expressed concern about the Board micromanaging Staff. Director Fultz also questioned whether the District’s rain measurements are accurate, and he said he would like to bring the Drought Designation to a Board meeting. He said he had requested this twice in recent months, and he asked why the District was still in drought after five years of reasonable rainfall.
Engineering
District Engineer Garrett Roffe presented this report. Chris listed three projects in the construction phase:
· Bracken Brae/Forest Springs Consolidation Phase 1
Contractor has completed mainline installation work except for the two Caltrans bridge crossings. The project was delayed by procurement of the longitudinal seismic bracing parts for the Caltrans bridge crossings. The parts are scheduled for delivery on June 5, 2026. Following successful installation of the seismic braces, the new Highway 236 pipeline will be pressure tested, disinfected, and connected to the distribution system. Existing customer service connections can then be transferred to the new Highway 236 pipeline and the old distribution pipes abandoned in place. The Contractor will pave at the tie-in locations and stripe the road, project completion scheduled for end of June 2026.
· Highland Tank:
Construction of the debris wall is complete. The tank concrete ring foundation is scheduled for concrete placement on June 5, 2026. Contractor is to complete all Work prior to October 29, 2026.
· Echo Tank, Redwood Park (Swim) Tank, & Spring Booster Pump Station
Contractor has completed the over-excavation and engineered backfill for the new foundations for Redwood Park Tank and Spring Booster Pump Station. Echo Tank temporary tanks have been installed and the old site yard piping has been demolished. Contractor is to complete all Work prior to December 31, 2026.
Chris listed numerous projects currently in the design phase:
· Fire Hardening Pump Stations
Staff is coordinating with metal fabricators for pricing of metal roof parts for the five roof replacements to be performed by Staff. Staff will prepare engineering plans for competitive bidding by qualified contractors for full replacement of the Big Steel Pump Station in July 2026.
· San Lorenzo Way Bridge Pipeline Replacement
The County had a schedule delay for the project bidding. The District will have bid items included in the project plans and specifications for the new water pipeline installed as part of the County’s project bidding documents. District staff will install the temporary potable water pipeline prior to construction.
· CZU Peavine Supply
District staff continue to work on the engineering plans, engineering calculations, site specific safety plan, helicopter lift quotes, construction material quotes, and staging area agreement for the raw water pipeline replacement. On April 15, 2026 the Engineering Committee recommended that Staff presents Peavine Procurement Construction Project to the Board with all cost information for the Board to review and approve.
· Lyon Slide Repair (2017)
GV Land Surveying completed and updated topographic map at the 2017 slide location. Haro, Kasunich, and Associates has provided geotechnical design values for repairing the existing road with soldier pile walls. Staff is working on the contract documents for environmental permitting and competitive bidding by qualified contractors
· The Haven Housing Development
The District has been awaiting updated hydraulic analysis from developer for over a year. Review letter sent to County Planning Department for fifth routing of plans.
· 2021 FEMA Project - Harmon Street
Staff will self-perform the construction summer 2027.
· Brookdale Tank Recoating & Improvements
Bay Area Coating Consultants, Inc. has completed the inspection report. Staff will publish the Request for Proposals for tank rehabilitation in fall 2026. Recoating work scheduled for winter/spring 2027.
· CZU 5 Mile Tree Removal
California Conservation Corps is scheduled for the hazardous tree removal in summer 2026.
· South Tank
MME completed the feasibility memo for South Tank.
· Felton Heights Tank (Lost Acre Drive)
Staff is working with the current land owner and the County to finalize the property acquisition necessary for the tank site. MME has completed 60% engineering plans for the proposed 120,000 gallon bolted steel tank.
· CA-9 Bridges (Monaco Lane Bridge & Kings Creek Bridge) Permanent
Work is on hold until Caltrans can complete phase 1 of the bridge replacements. Staff will self-perform the construction of the new pipeline bridge crossings.
· Foreman Pressure Break
The engineering consultant provided the bid documents for the prefilter system. The prefilters will provide several benefits: improved treatment plant operations, reduced cost, reduced footprint, reduced environmental impact in a sensitive area, and improved defensible space from any future fires. The repairs must be completed for the Lyon Slide Repair (2017) for Contractor access.
The Directors had questions and comments on only a few of these. Regarding the Haven Housing Development, President Russ asked if the District was supposed to be billing for Staff time against a deposit from the developer. Garrett said the developer has not yet paid the deposit. He is continuing to interact with the County. Two parcels are in our District and two are in our sphere of influence. Director Fultz asked if the District should even be working on the parcels that aren't in the District. Garrett said the District was supposed to review their consultant's hydraulic analysis.
Director Fultz said the Board needs to decide relatively soon whether we want to expand our service area. Garrett cautioned the Board to distinguish between clarifying items in the Quarterly Reports and expanding into open-ended discussion of non-agendized topics. Director Fultz argued that these matters should have been brought to the Board before this evening. President Russ said it wasn’t the Board’s intent to micromanage. Director Smolley suggested that there was nothing further to discuss until the developer pays the $15,000 fee.
Director Fultz urged Staff to make it clear that no actual consolidation work is being pursued.
Director Smolley had a question about a project still awaiting design. Garrett’s memo listed the Granite Rock Quail Hollow Quarry Desert Pipeline Removal project and reported that the District has removed the desert pipeline from service following the completion of the new 12” ductile iron water main in Quail Hollow Road. It is currently awaiting correspondence from Granite Rock for requested schedule and extents of desert pipeline removal. Director Smolley asked if Granite Rock is already contracted to do pipeline removal. Garrett said Granite Rock owns the quarry.
Operations
Operations Manager Jesse Guiver presented this report. He said the number of mainline repairs has decreased by 8.5% over the past year and is expected to continue to decrease. President Russ asked if these repairs could be put into some kind of GIS database so that we can see if there are any broader issues.
Jesse reported that new meter installations have increased by 42% over the quarterly average, due to the recent focus on Ben Lomond. President Russ noted that the old meters are being read by radio via Staff drive-by, and he suggested that it would be good to know what this is costing as we might want to accelerate meter replacement.
Jesse reported that surface water production is increasing while its cost decreases. President Russ asked about the all-in cost of surface water vs. groundwater over and above the chemical and electrical usage at the well-head. Director Fultz asked if there were any plans for leak detection this year, and Jesse said this was not in the budget. There were suggestions that the District accelerate a leak-detection survey this year and bring back a resolution for the Board to consider.
Unfinished Business
On-Call Inspection Contract Award
Engineering Manager Garrett Roffe introduced this agenda item. The District needs to hire an independent third party to perform special inspections during construction projects to verify the work is in conformance with the project specifications. The District issued a request for proposals and received five proposals. At a previous Board meeting, Staff recommended Haro, Kasunich & Associates, Inc. (HKA), but Board feedback led Staff to perform additional review of the evaluation results and proposed fee schedules. All bidders confirmed that their rates were at prevailing wage, and Staff looked more closely at billing for travel time. The reevaluation confirmed that the difference between the two highest-ranked firms was minimal, and Staff determined that a more comprehensive best-value analysis was appropriate. That review placed additional emphasis on the projected inspection costs associated with anticipated District projects and identified a significant cost advantage in selecting Twining, Inc. while still maintaining a highly qualified and experienced consultant team. Staff therefore now recommends that the contract be awarded to Twining.
The Directors appreciated the more detailed Staff analysis. They suggested that the District establish contracts with both HKA and Twining, and allow Staff to dynamically choose between them according to varying project requirements.
New Business
Camp Krem Rental Agreement
Environmental Programs Manager Chris Klier introduced this agenda item. He reminded the Board that the District is planning to start the 5-Mile Hazard Tree Mitigation and Shaded Fuel Break projects on June 17, 2026. The projects will mitigate about 650 hazardous trees along the 5-Mile Pipeline and implement a shaded fuel break along 2.5 miles of pipeline and one mile of access roads to the pipeline. The hazard tree mitigation will allow the District to begin other phases of the pipeline reconstruction, such as a survey. The shaded fuel break will protect the pipeline once rebuilt, the Lyon Water Treatment Plant, and provide access to fire crews in protection of the town of Boulder Creek.
The projects are included as part of the District’s $902,000 California Department of Forestry and Fire Protection (CAL FIRE) Fire Prevention grant awarded in February 2026, and all project costs are expected to be covered by the grant. The only additional cost is portable restrooms for the crew, which is also expected to be covered by the grant. An agreement with Camp Krem will provide the CCC with a place to camp while they are conducting their eight-day spikes. The camping rent is $4,000 monthly, totaling $40,000 over the ten months of work. The District had a positive experience with a similar use of Camp Krem for the Peavine Pipeline project.
The Board’s only suggestion was to rephrase the recommended resolution so that it merely specifies a payment of $4,000 per month, thus allowing some flexibility of the project runs a little longer than anticipated. President Russ made the motion, and Director Fultz seconded it. There was no public comment, and the motion passed 4-0.
Balance Hydrologics Agreement
Environmental Programs Manager Chris Klier introduced this agenda item. In Water Year (WY) 2014, the District began a long-term streamflow and water quality monitoring program on all active diversions to collect streamflow/diversion data. The data has been used to inform regulatory agencies, assist with operations, and establish a baseline for future projects. This monitoring occurred for 5 years.
In WY2019, a more refined monitoring and diversion management program was developed, reducing gaging to dry season monitoring and removing gages from non-operational diversions. The District also requested to separate the ecological and operational gauging. The ecological data consists of dry season gaging on Foreman and Boulder Creeks, which is used to evaluate the potential impact of the diversions on streamflow and temperature for ‘ecological’ regulatory purposes – habitat and fisheries. The operational data is used to better understand how its diversions may affect flow and habitat values, ensure compliance with water rights bypass requirements, and allow for treatment operators to easily assess diversion flows.
At the June 5, 2025 Board meeting, Chelsea Neill from Balance Hydrologics presented information about the District’s historic monitoring and dry season 2024 results. Directors asked for ways to reduce costs, such as reducing monitoring scope or having District staff take over some of the gaging. To this end, Staff is presenting a proposed agreement that includes District staff training from Balance at a total cost of $49,854.50 for WY 2026. This includes the cost of standard monitoring items and the replacement of a broken pressure transducer at Fall Creek.
Director Largay said he appreciated this approach. He expected this data to be important for the District’s Conjunctive Use Plan. He thought there were likely opportunities for cost savings by shifting some of the effort to Staff.
President Russ and Director Fultz asked about the potential for further cost savings based on the use of newer technology. Eventually, Director Largay suggested that this topic should be placed on a future agenda.
There was no public comment. Director Smolley moved to direct the General Manager to enter into an agreement with Balance, and Director Fultz seconded. The motion passed 4-0.
Call for Elections
General Manager Jason Lillion introduced this agenda item. He noted that Special Districts are required to consolidate elections with the County. Three of the District’s five Director seats will be on the ballot this November. All three will be open for a 4-year term. The District includes about 18,000 voters, so the estimated cost is between $45,000 and $90,000.
The only question for the Directors was whether the District should keep to its precedent of not reimbursing candidate statements, with a 200-word limit on these. Everyone agreed to this.
There was no public comment. Director Smolley moved to approve the resolution, and President Russ seconded. The motion passed 4-0.
Water Station for Ben Lomond Alliance
Operations Manager Jesse Guiver introduced this agenda item. The Ben Lomond Village Alliance is a local nonprofit organization whose mission is to improve and revitalize the community through local projects, community events, and support of local businesses. They are requesting SLVWD water support for an upcoming fund-raising event on Saturday June 6th that will directly support the Alliance and help fund future initiatives.
SLVWD’s in-kind donation of a Water Station provides an opportunity to promote community goodwill and positive public outreach while supporting a local nonprofit organization. The Mill Street Park has an existing service connection with the District. The Water Station will be connected to the customer side of this service to provide easily accessible drinking water during the event. Staff estimates approximately four hours of staff time will be required to transport, install, and remove the Water Station, totaling approximately $232 in District resources. All water usage will be properly metered and billed.
Jesse added that Staff has developed a proposed policy to be presented at the next Administrative Committee meeting. This will enable Staff to respond to these kinds of requests without bringing each request to the Board.
Director Fultz had three comments. He asked if this could become a self-service water station, and Jesse said it could not. Director Fultz also drew a distinction between providing water and providing service. Lastly, he distinguished between merely providing water and actively promoting the District to the public.
There was no public comment and no further Board discussion as this item was purely informational.
Consent Agenda
There were two items on the Consent Agenda:
a. Board Meeting Minutes 4.16.26
b. Board Meeting Minutes 5.7.26
Director Fultz pulled the first item to make a correction: he said some critical information was missing. He wanted to state for the record that he said Board comments need to be strictly constrained, and that it was important to make clear what these constraints are.
There was no public comment. Director Fultz moved to approve his revision, and President Russ seconded. The motion passed 4-0.
The 5.7.26 Board Meeting Minutes were approved by unanimous consent.
Lastly, Director Largay said he wanted to apologize for missing the Board meeting a couple of weeks ago. He mistakenly indicated his availability, but he thought he had said no and therefore did not attend. This resulted in the meeting being cancelled for lack of a quorum.
The meeting was adjourned at 8:55 PM.