SLVWD Board Meeting Summary
December 16, 2020
Mark Dolson
Highlights:
Mark Smolley selected to fill vacant Board seat.
District will proceed with property purchase for new Redwood Tank site.
Next Board meeting is at 6:30 PM on January 7.
Preliminaries:
The meeting began with some brief general updates. Agenda item 3e was deleted as Staff had insufficient time to complete preparation. There were no oral communications from the public
President Mahood shared her intentions as Board President. She expressed a concern that Board meetings have been too long and that this is an imposition on both Staff and the public. Her goal for 2021 is that Board meetings should last no more than two and a half hours. Also, her intent is for all Board members to participate equally. Consequently, Board comments will be solicited in alphabetical order. This will also be done for the public. Each member of the Board will be invited to comment in advanced of public input and again after the close of public input.
Old Business
Vacancy on Board of Directors
There were five applicants for the vacant Board seat resulting from the departure of Steve Swan. Each applicant was given four minutes to introduce themself and then asked to answer the same four predetermined questions. Each Board member then had the opportunity to pose one additional question per applicant if they so desired.
Since this process consumed nearly an hour, no attempt will be made here to document all of the individual responses. The applicants were:
Jayme Ackemann, a long-time Ben Lomond resident with a Marketing and Communications background and experience with San Jose Water Company.
Mark Dolson, a long-time Ben Lomond resident with a background directing research and technology development who has reported in detail on SLVWD Board meetings and issues throughout 2020.
Alina Layng, a Boulder Creek resident with a strong background in marine biology and substantial experience in the field.
Jamie Newton, a Felton resident who has worked as a teacher and Director with many families in local private pre-schools.
Mark Smolley, a Felton resident trained as a geologist, experienced in construction management, and a two-year member of the SLVWD Engineering committee.
The four standard questions were:
Please provide a specific example from your own experience, working on a Board, a committee, or in some other context, in which you helped a group of people with diverse opinions collectively reach agreement on a contentious issue. How did you influence the group, and what was the outcome?
Please describe what you think is at stake in the District’s participation in the Santa Margarita Groundwater Agency.
Please describe your workings with the SLVWD up until this point in time.
Board members can expect to spend 10-20 hours a week, and sometimes more, attending meetings, reading background material, and preparing to be an active participant. Can you please describe how you plan to integrate this commitment and work it into the other engagements that you have?
In the initial round of Board comment, Director Fultz said the valley has a wealth of talent and that this is also why he has promoted the expansion of committees to include more public members. He encouraged all applicants to get involved with committees.
Public comment began with Kate Stoelting, a resident of Felton. Kate has known Jayme Ackemann for over ten years and has found her to be extremely devoted to SLV and passionate about water.
Jim Mosher, a long-time Felton resident, said how appreciative he is of the talent in the valley and the willingness of people to serve. He said that Mark Dolson has been instrumental in building the Friends group and working across disagreements to build solutions.
Karen Holl, a Felton resident, was also very impressed with all the candidates. The criteria that matter to her are relevant professional experience, their experience with SLVWD, and being able to come to consensus across diverse opinions. Mark Smolley struck her as someone who matches up well with these qualifications.
Rick Moran, from Ben Lomond, had the pleasure of working with Mark Smolley for over a year on the Engineering Committee. Mark’s input was always thoughtful and very helpful. His commitment to this community and his experience would make him a great addition to the Board.
Kelly Francis is a 22-year SLV resident. She supported Jamie Ackemann as very smart, well-informed, and very community driven. When the fires broke out, she was very active in working toward solutions.
President Mahood invited comment from each Board member. Director Fultz really wished that all five people could be combined into one. Each person brings real strength in one or more areas.
Director Henry expressed a preference for Mark Smolley. Everything that she has heard about him suggests that he is a person who will listen and work well with others. Also, the District has so many infrastructure problems that he would be the best choice.
Director To said it was important to her that the District recover from the fire and take care of the groundwater. She saw Mark Smolley as the person who would serve the District best.
President Mahood listed three main criteria: (1) relevant skills and expertise, particularly for rebuilding, (2) ability to hit the ground running, and (3) substantive experience contributing to group decision making. She viewed Mark Smolley as the person who best fulfilled these criteria. The other applicants also have a lot to offer. She hoped that they would all serve on committees, and she noted that Mark Dolson and Alina Layng have already applied.
Director Fultz said that everyone has commented on Mark Smolley as a known quantity, and this is very important. He said that he was happy to see the Board achieve consensus on this choice. He added that Jamie Newton would be great on the Lompico Assessment District Oversight Committee (LADOC).
Director Henry moved to appoint Mark Smolley. Director Fultz seconded. The motion passed 4-0. Mark Smolley was sworn in by Holly Hossack and immediately took his seat on the Board.
Installation of Water Service
Agenda items 3(b) and 3(c) were combined in order to streamline the discussion. Both items were discussed at a previous Board meeting and were now being brought back to the Board with requested revisions to the wording of the applicable agreements. Item 3(b) concerned a Long Service Line Agreement for Kimberly and Steve Markey, and item 3(c) involved three existing customers with long service lines whose meters are a long distance from their homes. Staff has worked with them to relocate the meters, but their properties need to be annexed into the District.
Counsel Nicholls said the primary changes made to the agreements were to clarify the language while preserving the spirit.
Director Smolley asked if the District had any agreement on funds that the Markeys will pay. District Manager Rick Rogers explained that they will pay a connection fee and have responsibility for the line.
Director Fultz said he found the revised agreements much better, but he still needed some further clarification. He asked what the indemnification was intended to cover. Counsel Nicholls said it covered just about anything the District might do. Director Fultz found this to be atypically broad. He said he saw this as an agreement between neighbors, so even though he was prepared to approve the revised text, he wasn't comfortable with this agreement as a new template. Also, he said that if there is a main line going forward, he would encourage homeowners to make sure they are not paying twice via further negotiation. Lastly, he asked about the annexation process. Rick Rogers said this might take 18 months, but it wouldn't be a problem.
There was no public comment. The motion to approve 3(b) and 3(c) passed 5-0.
Redwood Park Tank Initial Study and Mitigated Negative Declaration
The Redwood Park Tank Project concerns the construction and operation of a new 125,000-gallon bolted steel water storage tank on an undeveloped 6,530 square-foot parcel located northwest of the intersection of Country Club Drive and Dundee Avenue in Ben Lomond. This project was discussed at the November 5th Board meeting, and public comment at that time made it clear that – while there was widespread agreement on the desirability of the project – the affected residents still had multiple unresolved concerns about some of the details.
On December 8th a two-hour public workshop was conducted to address questions and concerns from the neighborhood. To facilitate this meeting, the District conducted a direct mailing of approximately 260 notices to the entire neighborhood impacted by the tank and construction. The meeting consisted of a short presentation and a question/answer period with approximately 18 participants. Most of the questions concerned traffic control during the two-week construction period of the mainline. There were also several questions regarding impacts to neighborhood parking and roadway resurfacing.
President Mahood commended Staff for responding effectively to neighborhood concerns, and she noted a great willingness on both sides to cooperate. She was pleased that the affected neighborhood will finally get larger diameter pipes for adequate fire flow even if it does create a few weeks of inconvenience.
In public comment, resident Peter Parker thanked the Board for being responsive to the issue of pump noise abatement. He reported having had a series of good experiences and was pleased that Rick Rogers had proposed a soundproof enclosure for the pump.
The Board adopted the Initial Study and Mitigated Negative Declaration by a vote of 5-0. The District will now move forward with purchase of the property as previously agreed.
New Business
Resolutions of Appreciation for Former Directors
District Secretary Holly Hossack read resolutions of appreciation for former Directors Steve Swan, Lew Farris, and Rick Moran. Director Fultz elaborated, noting Director Farris’s work of fire preparation and Director Moran’s work on glyphosates. Director To expressed her appreciation as well.
There were no public comments. The Board voted 5-0 to approve the resolutions.
Board Policy Manual for 2021
Rick Rogers introduced this item, requesting that the Board review the manual and email proposed changes and email feedback to Staff by December 28th. Directors Henry and Fultz each spoke in favor of this review. Director Fultz suggested that Board members should have access to the California Special Districts Association (CSDA) template as a reference document. He also recommended that some of the proposed changes be reviewed by the Administration Committee.
There were no public comments. Rick Rogers committed to disseminating the CSDA template to the Board.
Agreement for Legal Services Re: Proposed Loan Refinancing
Counsel Gina Nicholls introduced this item. Staff isn’t yet ready for a full Board discussion on loan refinancing; the goal here is merely to help the District move forward with receiving useful advice to inform its planning. Gina’s law firm, Nossaman, isn’t able to provide this service at this time, so it is necessary to seek input from a different law firm that specializes in this kind of financing. The $25,000 fee seems reasonable, and approval is time-critical because there is a limited window for eligible expenses.
Director To asked if this would be a flat fee and not subject to change. Counsel Nicholls confirmed this. Director To also sought Finance Manager Stephanie Hill's perspective. Stephanie explained that a legal opinion is required for tax-exempt financing (which, in turn, should result in a significantly more favorable interest rate, saving $200,000 on $5 million over twenty years).
Director Fultz asked what kind of expenses the District is looking to cover because, in his view, this looked more like a bond than a bridge loan. Stephanie said a bridge loan depends on getting an official FEMA allocation which isn’t yet available. The CZU Fire expenses are likely to total $20 million, and the District will presumably be responsible for 25% of this.
Director Fultz said that at some point, more clarity will be needed; he expressed concern about the possibility of going into long-term debt on short-term expenditures. He asked whether damage estimates were going to increase still further, and he also wondered whether FEMA would insist on financing only same-kind replacement of damaged infrastructure. Rick Rogers responded that the Board will eventually have to make some decisions, but that the Staff believes that most expenses have now been identified. Surface water supply lines are big-ticket items; if these are buried (assuming that this even proves environmentally acceptable), the costs will increase substantially. Recoating of tanks could potentially add another $1 million. As for FEMA, meetings are continuing, and FEMA is getting ready to send a team out. They may allow for new best practices, but they may not tolerate new line locations. The $20 million figure is for relocating distribution lines to public rights-of-way and burying them (as opposed to running them cross-country, above-ground). The raw water collection is still to be studied (and buried ductile pipe might move the number above $20 million).
President Mahood intervened to refocus the discussion on the proposed agreement as opposed to the estimation of pending expenses. She recognized Director Henry who advocated for moving ahead with the agreement. Director Fultz was still concerned that the resolution in support of the agreement specified an anticipated maximum expense of $5 million; he asked if this might be exceeded. Counsel Nicholls said there was some flexibility in this number, and her priority was to act promptly.
There was no public input. The motion to authorize the District Manager to execute the Letter of Agreement passed 5-0.
Local Agency Formation Commission Solicitation of Nominations for Board
District Manager Rick Rogers presented an informational agenda item whose purpose was to solicit nominations for upcoming seats on the seven-member LAFCO Commission, in case anyone was interested in pursuing this opportunity. There was no significant discussion.