Mark Dolson
Progress on Repairs and Budget Planning, and a Tragic Loss
The San Lorenzo Valley Water District (SLVWD) Board has met twice (May 18th and June 1st) since my last report. The meeting scheduled for June 15th has been canceled in the wake of the shocking loss of District Engineer Josh Wolff who suffered a fatal medical emergency while inspecting the route of the District’s Peavine pipeline on Ben Lomond Mountain. Josh joined the District in 2021 and quickly established himself as an invaluable addition and a critical and highly respected member of the management team. He will be greatly missed by his family, SLVWD, and the entire San Lorenzo Valley.
Each of the two most recent meetings included one repair-related agenda item and one budget-related item. In May, the Board unanimously approved a revision to an existing contract with Schaaf & Wheeler for design and construction support services. The revision added $92,300 to the existing contract (an increase of about 50%) to account for multiple changes and additions to the original project. These changes were due to both environmental factors such as the CZU Fire and operational improvements to the system such as a reduction in the number of pump stations.
In June, the Board unanimously approved an emergency contract of up to $250,000 with Anderson Pacific Engineering to explore and implement a solution to storm-related problems with a section of the District’s recently installed pipeline beneath Quail Hollow Road. An abnormally high local water table has rendered the standard construction techniques inadequate.
In May, the District reported the results of its negotiations with its two separate bargaining groups: the Classified Employees Union and the Management Unit. All employees will receive a Cost-of-Living Adjustment of 6% based on inflation experienced during the past year, along with a one-time payment of 7%. In addition, the District agreed to conduct a formal salary study to compare its compensation levels with those of similar agencies, and to benchmark District salaries to at least 50% of the salaries in the comparison set, with any resulting raises to be spread over a period of years. The Board voted 4 to 1 to approve the agreements, with Director Fultz voting against. Director Fultz was critical of the closed negotiation process and expressed a general concern about increasing operating expenses.
In June, the Board engaged in further review of the proposed (but not yet final) budget for the two upcoming fiscal years. Some of the District’s pending expenses (e.g., the cost of replacing major pipelines destroyed in the CZU Fire) cannot yet be accurately estimated, but two important issues were apparent. First, the trends in reserves and debt coverage made it clear that a rate increase will be necessary (and, indeed, a formal rate study has been initiated). Second, cash flow will need to be closely monitored due to the unpredictable timing of FEMA reimbursements.
The District has scheduled a special meeting of the Board of Directors for June 21st at 6:30 p.m. to replace the canceled June 15th meeting. The next regular meeting is scheduled for July 6th at 6:30 PM.
