SLVWD Board Meeting Summary
May 6, 2021
Mark Dolson
Highlights:
Jayme Ackemann appointed to fill vacant Board seat.
Committee memberships adjusted.
Public committee memberships discussed.
Drought stage recommendations approved.
Grant writer consultant approved.
Connection fee waiver approved for legacy property.
Foreman Access Trail Rehabilitation design project award approved.
Lyon Access Road design project award approved.
Updated Purchasing and Procurement Procedures approved.
Sole source procurement for SCADA equipment approved.
Next Board meeting is at 6:30 PM on May 12.
Preliminaries:
Nothing was reported from closed session.
Director Fultz called attention to an item that was not on the agenda despite previous indications that it would be: a very preliminary Consolidation Report from District Manager Rick Rogers and his Scotts Valley Water District counterpart Piret Harmon. Rick explained that this item will be on the May 20th agenda.
Jim Mosher commented on the lack of further news from the District on the $1.1 million lawsuit filed against it by the County for the cost of repairing Bear Creek Road following a January 2020 landslide. The County alleges that the slide was caused by a leaking SLVWD water pipe whereas the District maintains that the slide caused the water pipe to break, and that the District repeatedly informed the County of the hazard that their inadequate road maintenance presented to the District’s pipeline. Jim said it would be helpful for ratepayers to understand if there are any reports (e.g., engineering) that are part of the public record. Rick Rogers said that pending litigation is generally not discussed in open session. Legal Counsel Gina Nicholls said the two relevant documents are the County's complaint and the District's response. She didn't think much more could be said at this point.
Former Director Rick Moran read a statement addressing the issue of Board resignations. He noted that five of the last eleven elected Board Members have resigned, and he was unhappy with the use of appointments to fill these vacancies. He recommended that Legal Counsel Gina Nicholls work with representatives Mark Stone and John Laird to devise a legislative solution that would enable the District to hold a more immediate election at a reduced cost.
New Business
Appointing a New Director to Fill the Board Vacancy
Two candidates applied to fill the Director position vacated by Tina To in March (both candidates also applied to fill the vacancy created by Steve Swan’s departure in December):
Alina Layng has a background in fisheries and aquatic biology. She is a public member of the Environmental Committee and has been attending Board and SMGWA meetings to prepare for a larger role in helping SLVWD. She particularly cares about balancing habitat preservation with water needs and about equity for ratepayers. She suggested that her strong environmental background would help fill a knowledge gap created by Tina's departure.
Jayme Ackemann has lived in the SLV for fifteen years. In addition to her deep roots in the Valley, she understands local politics and has good relationships with key figures. She has worked in public relations at San Jose Water and other public utilities. Like Alina, she became more focused after the CZU Fire on serving her local community. This has also motivated her to cover water issues for the SLV Post.
President Mahood posed a series of questions to Alina and Jayme:
The role of the Board is to provide oversight and guidance. In your opinion, what is the most significant near-term issue and the most significant long-term issue facing the District?
Santa Margarita Groundwater Agency (SMGWA) question:
o For Alina: Tell us about salmonid fisheries historically in the watershed, their situation now, what we might expect with future climate change, and the role you think the District should take concerning the fisheries.
o For Jayme: What are keys to planning, implementing, and completing water projects involving constituencies of different sizes with different concerns?
Outreach question:
o For Alina: What benefits do you see from the District's use of social media, and what role do you think it should play in the District's overall outreach?
o For Jayme: How would you suggest the District structure a campaign to educate ratepayers about costs associated with projects coming out of SMGWA?
Personal question:
o For Alina: Can you speak about the number of short-term positions on your resume?
o For Jayme: How would you separate your role as a local reporter from your role on the Board?
Both candidates provided thoughtful and persuasive responses to all questions. Both emphasized rebuilding fire-damaged infrastructure as the highest near-term priority and groundwater management as the highest long-term priority. Alina explained that short-term contracts were the norm in working with fisheries, and Jayme clarified that she is not a reporter but a columnist who would refrain from writing about Board matters. There were no further questions from other Directors.
Seven members of the public were present, and three offered comments. Jim Mosher thanked both Alina and Jayme for applying. He said he has worked with Jayme and has been impressed with her insights and expertise. He was also impressed with Alina's responses. He described them as two great applicants.
Jeff Hill asked whether either candidate had any real or potential financial conflicts that would affect their ability to serve on the Board. Neither candidate foresaw any conflict. Alina said she was married to someone who works for San Jose Water. Jayme said she consults but not on water.
One of Alina’s neighbors voiced his support for her and said the neighborhood relied heavily on her during the CZU Fire.
The Directors agreed that both candidates appeared well qualified. Director Fultz moved to appoint Jayme Ackemann, and Director Smolley seconded. The motion passed 4-0, and Jayme was immediately sworn in by District Secretary Holly Hossack.
Adjustment to Board Committee Memberships
President Mahood recommended that Director Ackemann replace her on the Administration Committee. Director Fultz suggested that Director Ackemann also replace Director Smolley on the Environmental Committee. He argued that this would spread the workload (reducing Director Smolley’s responsibility to two committees) and inject a fresh perspective. He ended his suggestion by making a motion to this effect; Director Ackemann seconded.
Director Smolley responded that he has the bandwidth to continue serving on the Environmental Committee, and President Mahood said she believed each committee should have at least one Board member with expertise in that domain (in this case, Director Smolley).
Director Fultz argued that this was an issue of equity and fairness in terms of committee participation. He didn’t think that specific expertise was essential. Director Henry disagreed and recommended that Director Smolley be allowed to remain on the Environmental Committee.
At this point, Director Ackemann rescinded her seconding of Director Fultz’s motion. President Mahood then moved that Director Ackemann be appointed to the Administration Committee in place of President Mahood. Director Henry seconded this.
There was no public input, and the motion passed 5-0.
Public Member Vacancies on Budget and Finance Committee and Environmental Committee
Due to a recent resignation, there are currently two public members on the Budget and Finance Committee. President Mahood proposed that each Committee Chair, in consultation with the Committee, decide whether or not to advertise a vacancy when a public member resigns (unless the resignation brings the number of public members to zero). She recommended that this practice be followed until it can be reassessed when the Board Policy Manual is revised in January 2022. She argued that a new public member of the Budget and Finance Committee wouldn’t have adequate time to come up to speed on the current budget discussions and that the committee chair would generally have the best perspective on the specifics of each situation. Director Henry (Chair of the Budget and Finance Committee) agreed.
Director Fultz disagreed. He said that there would still be important budget discussions in the second half of 2021, and he expressed a broader concern about a pattern of rolling back policy changes that he successfully championed following his election to the Board at the end of 2018. He argued that expanded public participation on committees was important both for the Board and the community.
Director Henry appreciated the value of public participation but said the Budget and Finance Committee itself felt that two public members were sufficient. Director Ackemann said a reasonable argument could be made for working harder to recruit public participants, but that requiring this response to every vacancy could be unduly burdensome and unnecessary. She suggested putting more effort into soliciting public committee members this coming fall. President Mahood said resignations were inevitable, and Staff agrees about the burden.
Director Fultz countered that committee membership must be determined by the Board and not by the committee chair. President Mahood said the Board would still need to approve appointments. Legal Counsel Gina Nichols added a clarification: The Board must either approve an appointment or approve the new number of public seats on the Committee.
President Mahood moved to change the number of public members on the Budget and Finance Committee from three to two for the remainder of 2021. Director Henry seconded.
There was no public input. The motion passed 4-1 with Director Fultz opposing.
Director Smolley noted that there has also been a recent resignation on the Environmental Committee. He will discuss the vacancy with the other committee members and report back to the Board on his preferred solution. The May committee meeting was cancelled due to insufficient attendance, but it may now be rescheduled later in May.
Drought Stage Recommendations
Rick Rogers explained that a four-stage water usage reduction strategy was developed as part of the District’s 2015 Urban Water Management Plan. The District promptly entered Stage 2, which calls for restrictions on outdoor watering. The Board reaffirmed the District’s Stage 2 status in 2018, and this dry state continued through 2020. Currently, nearly 40% of the West is in extreme or exceptional drought (and Santa Cruz County was moved from moderate to extreme drought status on May 6th). San Lorenzo Valley rainfall this past winter was far below average, and several of the District's surface water diversions are still offline due to CZU Fire damage. This is concerning, but the District should still have sufficient water in 2021. Staff is therefore recommending that the District remain in Stage 2.
Director Fultz sought further information both about specific Stage 2 conservation targets and about the District’s progress on reducing leaks in its distribution system. Rick Rogers said the goal is to match the conservation achieved last summer. He also said high water loss is not uncommon in older systems. The District has contracted for repairs on its redwood tanks and ultrasonic leak detection on pipelines (which is very staff-time intensive). It replaced seven redwood tanks in the past two years and has another four to six that are still leaking. The Capital Improvement Program is the key to getting the water loss down to 14% (also, some of the loss is due to old meters rather than actual leaks – the District hopes to make significant progress in reducing unaccounted-for water in 2021).
Director Smolley noted that the Stage 2 declaration doesn’t actually mandate a specific conservation target. He moved to affirm the declaration as stated.
There was no public input, and the motion passed 5-0.
Grant Writer Consultant
Environmental Planner Carly Blanchard reported that two proposals were received in response to the District’s request for assistance in identifying and obtaining grants to assist with funding for operations, infrastructure, and other programs. Currently, many grant opportunities are being missed due to insufficient staff resources, so this is an attempt to find a cost-effective way of overcoming this limitation. Both Staff and the Administrative Committee recommended Susan Robinson based on her strong track record (including ongoing work for the City of Santa Cruz). Funding was set at $35,000 for the coming fiscal year in order to allow the District to assess the potential return on investment.
Directors Fultz and Henry both expressed their support. Director Smolley asked if there could be a potential conflict of interest between Santa Cruz and SLVWD. Carly said this had been discussed. Susan would not pursue a grant that she was already working on for another agency. Also, the City of Santa Cruz is actually very interested in partnering with the District. Director Ackemann wondered how many grants might present a conflict and whether Susan would bring a competitive grant to the District in the first place. Carly said the District would not be screened out of any relevant opportunity, but that the number of possible conflicts would need to be determined based on ongoing experience. President Mahood added that Susan’s knowledge of where to look for grants is one of the benefits to hiring her even if she can't deal with these directly.
Director Smolley also asked whether Susan’s workload would leave her with sufficient time for this new assignment. Carly said Susan was confident that she has time available. She would research and bring grants to the District as a first step. Director Fultz noted that Susan also has a staff assistant.
Director Mahood moved that the Board direct the District to enter into a contract with Susan Robinson with a limit of $35,000. Director Fultz seconded this.
There was no public input, and the motion passed 5-0.
Eandi Property Connection Fee Waiver
Rick Rogers explained that a property owner recently informed the District that he has been receiving free, unmetered water from an ancient pipe damaged in the CZU Fire, probably due to a long-ago prior agreement. This parcel would require a 1" meter on Highway 236. It would be extremely difficult and expensive to uncover the relevant historical documents, so it will make more sense to waive the $19,000 connection fee in this case.
Directors Henry and Fultz agreed with the Staff recommendation, and Director Smolley moved that the District waive the connection fee.
There was no public input, and the motion passed 5-0.
Foreman Access Trail Rehabilitation Design Project Award
Engineering Manager Josh Wolff reported that two proposals were received for rehabilitation of a trail that was cut immediately following the CZU Fire to allow construction of the Foreman Creek raw water pipeline and a portion of the 5-Mile raw water pipeline. The Engineering Committee reviewed both proposals and recommended the proposal from Freyer & Laureta. At a cost of $134,200, this solution was more comprehensive, shorter in duration, and substantially ($50,000) less expensive. Rick Rogers also noted that this is a FEMA project.
Director Fultz was pleased to see a new supplier. President Mahood moved to approve the selection of Freyer & Laureta, and Director Henry seconded this.
There was no public input, and the motion passed 5-0.
Lyon Access Road Design Project Award
Josh Wolf noted that there was a slide in 2017 near the District’s Lyon water treatment plant and tanks that damaged the access road. This project is an attempt to take advantage of CZU Fire damage (which forced the removal of some 400 trees) to find an alternate path up the hill to the Lyon complex. This appears quite promising and could greatly reduce the expense of the still-pending hillside stabilization project. Three proposals were received, and Staff recommended hiring Sandis for $162,130. This project is FEMA eligible.
Director Fultz asked a few follow-up questions. President Mahood moved to approve the selection of Sandis, and Director Fultz seconded this.
There was no public input, and the motion passed 5-0.
CALFIRE California Forest Health Grant Representative Authorization Award
Environmental Planner Carly Blanchard explained that the District is seeking to submit a proposal for the CALFIRE California Forest Health Grant Program as part of the Resources Conservation District of Santa Cruz County’s application package. The California Forest Health Grant Program funds active restoration and reforestation activities aimed at providing for more resilient and sustained forests to ensure future existence of forests in California. Rick Rogers needs to be approved as signatory, and a Board resolution is needed to document this.
President Mahood move to approve, and Director Ackemann seconded.
There was no public input, and the motion passed 5-0.
Purchasing and Procurement Procedures
Rick Rogers explained that current procedures are badly outdated, and many are not being followed. Staff has worked for many months to devise a new set of policies, and the Administration Committee has reviewed and endorsed the resulting revisions.
Director Fultz asked whether any California statutes prohibit consultants who generate a report from participating in follow-on projects. Rick Rogers noted that this is part of the purchasing requirements for FEMA projects, but Director Fultz wanted to know specifically about the state. Legal Counsel Gina Nicholls asked Director Fultz to let her know if he found something relevant. Director Fultz praised Rick Rogers and Stephanie Hill for all their work on this.
Director Ackemann asked if this brings the District into alignment with federal or state grant programs that it might pursue. Gina described the new policy as the gold standard. Director Smolley moved to approve the new policy, and President Mahood seconded.
There was no public input, and the motion passed 5-0.
Quail Tank and University Tank and Booster SCADA Equipment - Sole Source Procurement
Director of Operations, James Furtado explained that the District needs to upgrade its Supervisory Control and Data Acquisition (SCADA) system. Staff recommended that the District contract with Emerson Process Management for $81,000 ($27,000 per site) to replace legacy equipment in the field (25-30 years old) that AT&T is eliminating. This will introduce cellular-based communication that is more resilient against power outages.
Director Smolley asked why the District has proprietary software that it can't competitively bid. James explained that this was a consequence of upgrading the legacy solution. Rick Rogers added that remote sites have been changed, but the main bridge remains with Emerson. James added that replacing the entire system would cost close to $1 million.
Director Fultz was unhappy with this situation. He argued that the District will be at Emerson’s mercy until it gets serious about taking them out of the picture. He also asked whether the District’s cellular communications are given priority in a disaster situation. Rick Rogers wasn’t sure about this. He said Verizon has the best service in the valley, but only AT&T offers this kind of prioritization.
Cynthia Dzendzel asked how resilient the cellular network is during a fire. Rick said that the District lost cellular communication in a lot of areas and dealt with this by driving around. The water distribution itself is run manually in an emergency. James added that the District has its own in-house radio system.
The motion to approve the upgrade passed 5-0.
The meeting was adjourned at 9:15 PM.