SLVWD Board Meeting Summary
October 3, 2024
Mark Dolson
Highlights:
Harris Cross-Country Pipeline Environmental Contract
Regional Government Services Contract Amendment
Next Board meeting will be at 6:30 PM on October 17, 2024
Preliminaries
All five Directors were present.
President Hill reported that, in the just-concluded Closed Session, the Board unanimously agreed to make an offer to an applicant for the Human Resource Specialist position. No other reportable actions were taken.
There were two public comments on items not on the agenda. An unidentified representative of Forest Springs said she wanted to commend District Engineer Garrett Roffe for his work in getting the revised package out to bid and for working with the community and with Bracken Brae and with the Department of Water Resources. With regard to the process of identifying a temporary General Manager, she asked if the Board could tell the public any more about the search process and current status. President Hill said it could not.
Bruce Holloway of Boulder Creek said that one of the tasks of being a Director is reviewing bills that are paid by the District. He said the District had not shared any of its bills since the end of May. He also said he wanted to rebut a Board response to his comment at the previous meeting about the $100,000 payout to former Interim General Manager Brian Frus. He argued that the contract had already expired at the time this agreement was reached. He apparently intended to say more about this, but he was already well past his allotted three minutes.
Unfinished Business
None.
New Business
Harris Cross-Country Pipeline Environmental Contract
District Engineer Garrett Roffe introduced this agenda item. He reminded everyone that the District’s Cross-Country Pipeline Replacements consists of five discrete projects to replace sections of pipeline damaged in Federal Emergency Management Agency (FEMA)-declared emergencies.
To qualify for 75% FEMA reimbursement, the District must conduct biological and cultural studies that meet FEMA Environmental Historic Preservation Standards. The projects are:
Huckleberry Pipeline: The District will install 1,000 linear feet of 12-inch ductile iron distribution main, including 110 feet crossing the Huckleberry Island Bridge, and one new fire hydrant. (Damaged in the 2022/2023 New Years storm.)
South Zone Pipeline: The District will install 4,000 linear feet of new 8-inch ductile iron distribution main, 26 new water service connections, and six new fire hydrants.
Bennet Spring Raw Water Pipeline: The District will bury 1,960 linear feet of 4-inch HDPE raw water main, which is currently installed on the surface. (Damaged in 2020 CZU Fire and 2023 wind storm.)
Bull Creek Raw Water Pipeline: The District will bury 2,600 linear feet of 4-inch HDPE raw water main.
Foreman Pipeline: The Foreman Pipeline was reconstructed as an emergency project immediately following the CZU fire damage in 2020. The pipeline is approximately 1,500 feet of HDPE raw water main. An environmental review is necessary to receive FEMA reimbursement despite already being constructed. Studies will be conducted in the same manner as on the unconstructed pipelines. (Damaged in 2020 CZU Fire.)
In view of their shared scope of work, the five separate projects were bundled into one environmental review contract, and three bids were received by the August 23rd deadline:
Harris & Associates - $59,000
Surf to Snow Environmental Resource Management - $133,000
Aspen Environmental Group - $795,000
Staff selected Harris & Associates as the highest-rated proposal. Harris carried out the same scope of work (environmental and cultural studies to meet FEMA requirements) for the District on the Brookside Drive Pipeline Replacement in early 2024. This decision was reviewed and endorsed by the Engineering and Environmental Committee.
Multiple Directors commented on the extreme variation in the received bids, but nobody had any significant concerns, and there was no public comment.
Director Smolley moved to approve the agreement with Harris & Associates to conduct the Cross-Country Pipeline Replacements Environmental Review for an amount not to exceed $58,574.83 and to authorize the Engineering Manager to execute the agreement. Director Layng seconded.
Director Fultz spoke up to remind the Board that Bruce Holloway has frequently requested that Directors adhere more closely to the Board Policy Manual (BPM) and not make motions prior to allowing public comment. Director Layng commented that section 9F of the BPM does describe a standard sequence for Board actions and that public comment does precede making a motion in this sequence, but this is more of a guideline than a requirement, and the Board does not closely adhere to the prescribed sequence. The only absolute requirement in the BPM is that “members of the public may address each agenda item prior to Board disposition of that item.”
The motion passed 5-0.
Regional Government Services Contract Amendment
Legal Counsel Barbara Brenner introduced this agenda item. She reminded the Board that the District previously entered into a Management and Administrative Services Agreement with Regional Government Services (RGS) to assist with fulfilling the duties of the vacant Director of Finance and Business Services position. RGS delegated the work to Finance Consultant Heather Ippoliti who has been vital to the District.
The RGS agreement has been amended twice. The first amendment in February 2024 extended the term of the original agreement to September 30, 2024, and increased the total authorized compensation to RGS. The second amendment in May of 2024 revised the scope of services provided by RGS. The RGS agreement expires by its own terms on September 30, 2024, and, without action by the Board to extend the term of the agreement, it will automatically convert to a month-to-month agreement. Additionally, RGS’ invoices have reached the not-to-exceed amount of $118,300 authorized by the first amendment to the RGS agreement; therefore, RGS cannot continue to provide services, even on a month-to month basis, without an increase in the contract value.
Staff is recommending a third amendment to the RGS agreement extending the term to March 31, 2025, and increasing compensation to RGS under the agreement to an amount not to exceed $206,300.
There were no comments or questions from any of the Directors or the public.
The motion passed 5-0.
Consent Agenda
There were three items on the Consent Agenda:
a. 2021 CIP Change Orders
b. Alta Via Construction Contract Amendment
c. Budget Amendment – Arbitrage Tax
Director Fultz pulled item (c) in order to ask some clarifying questions. Heather explained that the District had three years to spend the money it received via its 2019 loan. Due to unanticipated disruptions associated with Covid and the CZU Fire, the District was unable to do this. This wouldn’t have been a problem if the loan proceeds had remained in a rate-restricted fund, but since the District earned significant interest, it was subjected to a penalty that effectively reclaims the excess earnings. The same situation applies to the District’s 2021 loan, but this money will have been completely spent within the next month or two.
There were two public comments on the Consent Agenda. Karen Brown of Boulder Creek said she had a problem with the 2021 CIP Change Orders for JMB Construction. She said the invoice was over a year old, and the checks show that they have already been paid. She voiced the same concern with regard to Anderson Pacific. Her broader point was that she felt someone was not paying sufficient attention.
Bruce Holloway of Boulder Creek called attention to a discrepancy between the amount reported by Heather and the amount show on an IRS Form. Heather explained that this was due a small difference in statement dates. Bruce used the remainder of his time to share his views on how the District should handle loans.
The Board voted unanimously first to accept items (a) and (b) and then to adopt a resolution in support of item (c).
The meeting was adjourned at 7:05PM so that the Board could return to Closed Session. President Hill subsequently announced that there was nothing further to report.