SLVWD Board Meeting Summary
September 17, 2026
Prepared by Mark Dolson for FSLVW
NOTE: Provided purely as a public service — NOT the official SLVWD Meeting Minutes.
Highlights:
Department Quarterly Reports
Procurement Policy
Contract Amendment with Rincon
Consolidated Policies and Procedures Manual
Accounts Payable
Next Board meeting will be at 6:30 PM on October 1, 2026
Preliminaries
Director Smolley was absent.
No reportable actions were taken in the just-concluded Closed Session.
Legal Counsel Gage Marchini advised that the first item of New Business (Review and Consideration of Updated Water Connection) had to be deferred to provide proper advance public notification (at least ten days prior to the meeting). He recommended that any fee-related agenda items be flagged for prior review by him to avoid a similar issue going forward.
There were no public comments.
Presentations
Department Quarterly Reports
Finance
Finance Manager Cheri Freese presented the Finance Department Quarterly Report for the final quarter of Fiscal Year 2026. (These are not yet the official numbers for the end of the full fiscal year.)
Cheri reported:
Total Operating Cash: $15 million
Total Restricted Cash: $19.2 million
Total Reserves: $10.5 million
Operating Cash less Reserve: $4.6 million
The District collected 102% of Budgeted Operating Revenue: $14.6 million
The District collected 120% of Budgeted Non-Operating Revenue: $2 million
The District collected Total Revenue of $16.6 million
The District spent 84% of Budgeted Operating Expenses: $8.8 million
The District spent 63% of Budgeted Non-Operating Expenses: $1.7 million
Total Operating Expenses of $10.5 million
The Ratepayer Assistance Program (RAP) has 137 participants (with room for a total of 146). 104 renewed from last year.
Cheri said staff will start to working on the FY27-28 budget in November, with the first Budget and Finance Committee discussion expected in April, and final approval in June.
Director Russ said he hoped the budget planning would synchronize with the Waterworth financial model. Cheri said the model should be available in December.
Director Largay appreciated the presentation.
Director Layng asked how many SLV households might be technically eligible to participate in the RAP. Cheri wasn’t sure, but Director Fultz thought the estimates based on PG&E data were in the range of 1000 to 1500.
Director Fultz noted a jump in meter sales and asked who was buying these, given that there has been very little growth in our area. The answer wasn’t immediately available, but Jason noted that there have been upgrades in Scotts Valley from 5/8 to 1” service. Also, the County is updating the Juvenile Hall fire service. Director Fultz wondered if the District should more proactively market upgrades.
Director Fultz commented on a $686,484 jump in miscellaneous fees and charges. Cheri said there were consultants in her position for part of the year. Director Fultz noted that the District was ending the fiscal year well below budget, and he expressed great appreciation for this. He said the message to the community in the past (and especially with the most recent rate increase) was that there was no way expenses could be reduced. He gave Staff a ton of credit, and he noted that every dollar saved can go to capital investment. Jason said the District has a very talented staff, and they are allowed to do their thing.
There was no public comment.
Management Analyst
Management Analyst Jen Torres presented this report titled, “From Recovery to Resilience: District Accomplishments, Funding Successes, and Community Investments.” Jen reported:
Substantial progress with FEMA. $2.24 million in funding has been recovered. $11.6 million is still outstanding. The most recent good news is that FEMA has confirmed all of our submitted projects. There are spending plans for these, but things are moving slowly.
The District completed funding and closeout of numerous storm recovery projects.
The District received FEMA and FHWA approval for its $952,000 for its Quail Hollow Washout appeal.
Over $20 million worth of pending FEMA (large CZU Fire recovery) projects are still advancing.
$2.95 million in grant funding has been received. $1.86 million in additional grant funding has been secured. Outstanding Grant Receivables have been from $1.78 million to $146,000.
Received additional funding of $302,482 for Forest Springs and Bracken Brae improvements.
Secured a $902,324 CAL FIRE Wildfire Prevention Grant.
Engaged in federal and state advocacy (April, 2026)
Engaged Representative Panetta's Office regarding FEMA funding delays affecting District recovery projects. Discussions confirmed ongoing federal funding and processing challenges impacting FEMA obligations and reinforced the need for continued congressional advocacy.
Met with Senator Laird's Office and regional special districts to elevate concerns regarding FEMA project delays and support coordinated advocacy for timely funding and project approvals.
FEMA Recovery Portfolio
Lyon: $4.1 million (Scope and cost development)
Alta Via: $3.3 million (Scope and cost development)
Bennett/South: $3.4 million (EHP Review on 9/9/26)
Eckley Facilities: $1.8 million (Large Project Review)
Peavine Facilities: $8.2 million (Large Project Review)
Quail Hollow: $952,000 (Final FEMA Review on 2/5/26)
FEMA review continues for the District's major permanent work projects, including the Eckley Pumping Station, Peavine Creek Pipeline, Foreman Creek Diversion, Sweetwater Diversion, and Five Mile Pipeline, representing more than $9.9 million in potential federal recovery funding.
Staff continues to evaluate and pursue funding opportunities that align with the District’s long-term goals:
EPA Drinking Water State Revolving Fund (DWSRF)
EPA Community Project Funding
Cybersecurity and SCADA Resilience Funding
Emerging Contaminants (PFAS) Funding
California Department of Fish and Wildlife Fisheries Restoration Grants
Sustainable Groundwater and Watershed Resilience Programs
10 Board Policies adopted since July 2024.
Jen summarized by saying, since July 2025, the District has:
Expanded water storage capacity through completion of the Blue Ridge Tank and construction of additional storage facilities.
Improved wildfire resilience through infrastructure hardening, defensible space projects, fuel reduction, and wildfire grant funding.
Reduced financial impacts on ratepayers through aggressive pursuit of FEMA reimbursement and grant funding opportunities.
Strengthened governance and organizational accountability through adoption of ten major Board policies.
·Continued advancing long-term disaster recovery projects that improve reliability, emergency preparedness, and community resilience.
Director Layng said she was very impressed with everything Jen has done. She praised her for making good use of the Administrative Committee in formulating policies.
Director Fultz complimented Jen on the very high Return on Investment (ROI) she was providing for the District. He asked some minor clarifying questions, but his main message was that Jen was generating a lot of positive outcomes. He also applauded her work on the District policy front.
Director Largay similarly applauded and congratulated Jen and the whole team for all of this work. He described this as really exciting, and said there was a lot of great work here. The previous assumption was that FEMA funding was a total loss, and Jen was showing otherwise. Jen’s persistence on the Quail Hollow reimbursement was particularly noteworthy.
President Russ agreed. He asked if there were other grant opportunities on the horizon. Jen said there were possibilities for cybersecurity, water contaminants, a bunch of stuff in Operations. Jesse added that the meter replacement project will ultimately replace almost all remaining meters. President Russ noted that this project will pay for itself.
There was no public comment.
Operations
Operations Manager Jesse Guiver presented this report. He began by calling attention to the cost savings being realized by the District’s investment in establishing an in-house construction crew. The crew has already completed or supported several projects for substantial savings: Kings Creek Bridge mainline, Echo and Highland Tank projects, repairs to the lower Paso Tank Access Road, the Harmon Street pipeline, and work on the District’s Johnson Building and surrounding yard. He said there were also many potential future projects including the Peavine, South Zone, and Railroad pipeline projects. He said he would have a detailed cost-savings analysis in his next quarterly report.
Jesse reported that “USA Locates” incidents were averaging 831 per quarter, significantly above the five-year quarterly running average of 622. He said mainline repairs were averaging 41 per quarter, slightly down from the five-year quarterly running average of 46. Meter installations have accelerated with 247 in Ben Lomond in the past quarter. Half the District’s meters can now be read remotely via cellular technology.
Jesse further reported that source-dependent water production costs were 10% below the quarterly average. Surface-dependent water production costs were 27% below. Groundwater-dependent water production costs were 8% below. He noted that Q3 will have a lot lower surface water percentage. Lastly, Jesse reported six in-kind donation events so far this year, with two pending.
Director Largay said he appreciated the report. He asked for some additional context on the costs of surface water vs. groundwater. Jesse said pumping cost (for groundwater) outweighs treatment cost (for surface water). He also said SLVWD’s groundwater costs are close to those of Scotts Valley.
Director Layng commented on the USA Locates costs, and this turned into a larger discussion. USA Locates responds to 811 requests and identifies and marks underground public utility lines before any digging or excavation occurs. Jesse said the District pays them monthly, but the requests are driven by PG&E and entirely out of the District’s control. Director Fultz said the District should quantify what the 811s cost other than the ticket in terms of Staff time as it seems like it might be a fairly large number. President Russ observed that 750 USA locates per quarter could be $20,000 a month. He said the District should track this, and he asked what might have driven the recent increase. Jesse said it was hard to say, but there has been a lot of work on Highway 9 and Graham Hill Road.
Director Fultz said Jesse’s reports were growing more and more helpful. He asked if the District would be doing leak detection this year, and Jason said the District had released an RFP. Director Fultz also had a few other minor comments. He said replacing thousands of meters at one time means the District has to plan to do a mass replacement when they age out. He said he was hoping overall operating costs are going down because it’s easier to read the new meters. He added that it’s good to have confirmed the lower cost for surface water. Lastly, he noted that the Ben Lomond Village Alliance is keeping you the District’s outreach support staff active.
President Russ commented on the cost differences between surface and well water. He calculated that the latter is about $0.70 more expensive per unit. He said there are still other incremental costs not captured in this figure. Eventually, the District will need to have a more complete accounting for the next Prop. 218 rate update.
There were no public comments.
Environmental Department
Environmental Program Manager Chris Klier presented this report. He shared the following highlights:
Shaded Fuel Break and Hazard Tree Mitigation
1.3 miles of fuel break and tree mitigation have been completed. About 0.5 miles remain. Work was paused following the fatal CCC accident. There are still 3.8 miles of tree mitigation remaining.
Access Roads shaded fuel breaks work expected to commence in October.
Defensible space work expected to commence in spring 2027.
Streamflow Monitoring
Staff assisting Balance with monthly streamflow monitoring at Fall Creek, Foreman Creek, and Boulder Creek during the dry season.
Chris assisted with replacement of a pressure transducer at Fall Creek in September.
Rainfall
Rainfall total in Boulder Creek for current water year (October 1, 2025 - September 30, 2026) is 40 inches, which is about 89% of the annual average rainfall to date.
Events
The District provided water for: Redwood Mountain Faire on May 30 & 31, Ben Lomond Scottish Day on September 19, Ben Lomond Village Market on June 6, July 4, August 1, September 5, & October3 (upcoming).
Olympia volunteer events startup again in Fall (October 2026-March 2027).
Director Fultz commented on what he viewed as insufficient progress on the District’s Habitat Conservation Plan (HCP) in the hands of consultant Jodi McGraw. His review of her billing records raised concerns for him about her level of effort on a project that is strategically important for the District.
Director Fultz also sparked a brief discussion about rain gauges. He observed that Boulder Creek is the driest place in the area, so he suggested checking wetter locations. Director Largay said there was a very reliable and longstanding rain gauge at the Ben Lomond Mountain site operated by the National Weather Service; it is reporting 54 inches. He also observed that all rain gauges will be proportional to one another, and drought policies are based on a percentage of normal, so the exact amount of rain will not come into play. Director Russ noted that the Ben Lomond Transfer Station is reporting 44 inches.
There was no public comment.
Engineering
Engineering Manager Garrett Roffe presented this report. He detailed the current status of the following engineering projects:
In Construction
Bracken Brae/Forest Springs Consolidation Phase 1: Contractor has completed the new 12” ductile iron mainline installation work and the new pipeline is currently in service. Remaining construction tasks include paving and road striping scheduled for the last week of September 2026.
Highland Tank: Construction of the new tank is complete and we are awaiting approval from the State Water Board to put the tank in service. Remaining construction tasks include the removal of the temporary poly tanks, abandonment of the old fill line, site paving and perimeter site fencing with new vehicular gate. A small leak was observed, and the tank had to be emptied of 80,000 gallons. Contractor will be on-site tomorrow to fix this.
Echo Tank, Redwood Park (Swim) Tank, & Spring Booster Pump Station: Contractor is nearing completion of the site retaining walls for both sites. Foundation concrete pour for the Spring Booster Pump Station and Redwood Park Tank is scheduled for the end of September 2026. Contractor is to complete all Work prior to December 31, 2026.
2021 FEMA Project - Harmon Street: Staff started the pipeline replacement with the tie-in at Lomond and Laurel, proceeding south on Laurel towards Harmon Street. Project completion anticipated in November 2026.
CA-9 Bridges (Monaco Lane Bridge & Kings Creek Bridge) Permanent: Staff has started construction of the new pipeline crossing Highway 9 at Kings Creek Bridge and are awaiting Caltrans to complete phase I construction to complete the pipeline installation on the new bridges. Kings Creek Bridge is still facing environmental constraints prior to Stage 1. San Lorenzo River bridge will first require installation of pipeline phase 1.
Upper Pasatiempo Pipeline: Staff will replace a section of failing existing pipeline from the tank down to Blueberry Drive before the end of October 2026. A survey of the proposed pipeline alignment between Upper Pasatiempo Tank and Charlie Zone will be needed to explore the possibility of eliminating Charlie Tank from the system.
In Design
Fire Hardening Pump Stations: Staff have received pricing for metal fabrication. Staff is collecting material quotes for the five roof replacements. The construction of the five roof replacements will be performed by Staff. Staff has published contract documents on the District website for competitive bidding by qualified contractors for full replacement of the Big Steel Pump Station. Bids for the full replacement of the Big Steel Pump Station are due October 7, 2026.
Graham Hill Road & Irwin Way Pavement Repairs: Staff has published contract documents on the District website for competitive bidding by qualified contractors for pavement repairs on Graham Hill Road and Irwin Way. Bids for the pavement repairs on Graham Hill Road and Irwin Way are due September 18, 2026.
San Lorenzo Way Bridge Pipeline Replacement: The County has completed the bid process and awarded the $6.2 million bridge replacement contract to Gordon Ball. The District bid items total $275,000 for the new permanent pipeline items, included in the $6.2 million contract bid price. County to confirm start date of April 2027 for District Staff to complete the installation of the temporary potable water pipeline.
2021 FEMA Project - Eckley Zone: Sandis has been directed to complete the construction documents for the new pipeline starting at West Park Avenue and Ridge Drive, proceeding to the top of Ridge Drive. The existing booster pump station will remain in service until the new CZU South Reservoir Distribution System: Staff is preparing engineering plans for the new pipeline.
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 an 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. Controlling groundwater and surface water is the most important element.
The Haven Housing Development: Awaiting updated hydraulic analysis from developer, review letter sent to County Planning Department for fifth routing of plans. The developer is just keeping the application alive without addressing SLVWD comments. Staff is not spending any time on this.
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.
South Tank: MME completed the feasibility memo for South Tank. Felton Heights Tank (Lost Acre Drive): Staff is working with the current landowner 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.
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.
Awaiting Design
Graniterock Quail Hollow Quarry Desert Pipeline Removal: The District has removed the desert pipeline from service following the completion of the new 12” ductile iron water main in Quail Hollow Road. Awaiting correspondence from Graniterock for requested schedule and extents of desert pipeline removal.
McCloud Tank Recoating: No updates on this project.
Quail Tank Recoating: No updates on this project.
Quail Tank SCADA Upgrade: No updates on this project.
Huckleberry Island Main Failure: No updates on this project.
Stewart Street Pipeline Project: No updates on this project.
Lost Acre Drive Pipeline Replacement: No updates on this project.
CZU Clear Creek 5 Mile Supply Line: No updates on this project.
Director Layng said she appreciated this report. She had some very specific questions about one or two projects.
Director Largay said he appreciated the detailed report but didn’t really need this level of detail as a Board member. He said he would much prefer to simply see Gantt charts tracking project progress. Director Fultz agreed, as did President Russ. He said, for the Board, it would be most helpful to see the projects in a table format with one project per row and then several columns indicating other information (e.g. % complete, costs, issues/comments, etc.).
Director Fultz urged Staff to complete the Felton Heights Tank as soon as possible, given that the District promised it to the community 14 years ago. He said he was really happy to see how many of these projects the in-house construction crew is actually involved in. He was also happy to hear that the crew members are local as this increases the benefit to the local economy.
President Russ said it was impressive to see how much is going on. He said he personally appreciated the detailed information.
There was no public comment.
Unfinished Business
None.
New Business
Procurement Policy
Finance Manager Cheri Freese introduced this agenda item. Her memo in the Board packet stated that the current Procurement Policies & Procedures were adopted in 2021, so it was appropriate for staff to undertake a comprehensive review to update purchasing authority levels, strengthen internal controls, clarify procurement procedures, and ensure the policy reflects current District operations and applicable state and federal procurement requirements. The draft policy was reviewed by the Budget and Finance Committee over multiple meetings, and multiple revisions were incorporated. The draft was subsequently reviewed by District Counsel, and legal comments have been incorporated into the version presented for Board consideration.
Director Largay and President Russ said they were happy with the result of their input as part of the Budget and Finance Committee. Directors Layng and Fultz approved as well. Director Fultz said a five-year cadence for reviewing policies makes a lot of sense, and the specific changes all appear sound. He liked the increased spending limits and the emergency procurement.
There was no public comment.
Director Layng moved to adopt the resolution, and her motion was immediately seconded. The motion passed 4-0.
Contract Amendment with Rincon
Environmental Programs Manager Chris Klier introduced this agenda item. His memo in the Board packet explained that a storm-related landslide in 2017 impacted the Lyon Treatment Plant Access Road. As part of the recovery efforts, the District released an RFP for environmental review of the project, ultimately signing an agreement with Rincon Consultants, Inc. (Rincon) in April 2020 in the amount of $171,658.
The District studied three road rehabilitation designs, with Rincon completing a Feasibility Analysis of the environmental impacts, permits, and mitigation for the design options. A Jurisdictional Delineation was also completed, with this initial work totaling just under $30,000. The project was placed on hold in 2021 with $142,000 remaining on their contract.
An engineering design has been selected for the Road Rehabilitation and 60% design completed, and therefore an updated scope of work was requested from Rincon for the environmental review. The requested amendment to Rincon’s contract will update the scope of work in the agreement to match the current project needs and update their staff rates.
Rincon’s updated scope of work presents two California Environmental Quality Act (CEQA) pathways with their respective costs. The expected pathway is the Statutory Exemption, Option 2, with a cost of $125,000. This cost is within the remaining balance of their contract.
The Directors were generally satisfied with this development, particularly since there was no cost escalation. President Russ noted that the scope of work was reduced, and he sought further clarification on the biological and archaeological monitoring plans as each of them cost over $15,000.
There was no public comment.
President Russ moved to approve the amended agreement, and Directory Layng seconded. The motion passed 4-0.
Consolidated Policies and Procedures Manual
Management Analyst Jen Torres introduced this agenda item. She said the goal was to present the proposed structure and organization of the District's consolidated Policies and Procedures Manual for Board review and feedback. This review is intended to confirm whether the Board supports the manual's overall framework, hierarchy, formatting, and organization before staff invests additional time finalizing individual policies, administrative procedures, appendices, legal references, formatting standards, and associated implementation documents.
Director Largay had no comment. Director Layng said she has been providing input via the Administration Committee. Director Fultz said he supported the concept, and he thought the general approach made a lot of sense. He asked Jen to see if there are documents that need to be split into policy (the province of the Board) and administration (the province of Staff). He also recommended a follow-on review in perhaps 16 months to see what might be learned from initial experience with the new policies and procedures.
President Russ called this a huge and valuable effort, and he directed Jen to continue working on this.
There was no public comment.
Accounts Payable
Finance Manager Cheri Freese introduced this agenda item.
Legal Counsel advised that this could be moved to the Consent Agenda for future meetings but not for this one.
Directors Layng and Largay had no questions. Director Fultz and President Russ had very minor questions.
There was no public comment.
Consent Agenda
There was one item on the Consent Agenda:
a. Board Meeting Minutes 9.3.26
There was a minor spelling correction. The 9.3.26 Board Meeting Minutes were approved by unanimous consent.
District Reports
Finance Report
Director Fultz had a minor question about differences in interest rates across two accounts.
The meeting was adjourned at 8:40 PM.