April 27, 2006 - Scotts Valley · water education foundation water 101: the basics and beyond 02/22/2018 sacramento availability of public records provided to the board of directors:

AGENDA PACKET

REGULAR BOARD MEETINGFebruary 8, 2018, at 7:00 p.m.

Santa Margarita Community Room2 Civic Center Drive

Scotts Valley, California

BOARD OF DIRECTORS

Chris Perri, PresidentDanny Reber, Vice President

David Hodgin, DirectorWade Leishman, Director

Ruth Stiles, Director

Piret Harmon, General Manager

BOARD OF DIRECTORS PRESIDENT Chris Perri

VICE PRESIDENT Danny Reber David Hodgin

Wade Leishman Ruth Stiles

GENERAL MANAGER

Piret Harmon Board of Directors

Regular Meeting 7:00 p.m.

Thursday, February 8, 2018

Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California

Agenda

1. Convene Meeting

1.1. Call to Order and Roll Call

1.2. Pledge of Allegiance and Invocation

1.3. Closed Session Report (No closed session on 01/11/2018)

1.4. Additions/Deletions to the Agenda

1.5. Oral Communications

2. Administrative Items

2.1. Approval of Minutes – January 11, 2018 Regular Board Meeting

2.2. Presentation

2.2.1 Community Outreach and Communications Mid-Year Update by Miller Maxfield Inc.

2.3. Committee Meeting Reports

2.3.1 2018 Standing Committee Assignments

2.3.2 Executive & Public Affairs Committee (none)

2.3.3 Finance & Personnel Committee (none)

2.3.4 Water Resources & Engineering Committee (none)

2.4. Santa Margarita Groundwater Agency (SMGWA) Board Meeting Report (none)

3. Consent (none)

4. Public Hearings (None)

5. General Business Items

5.1. Consolidated Redevelopment Oversight Board - Election of an Special District Member

Scotts Valley Water District Board of Directors Agenda -- Thursday, February 8, 2018 Page 2

Recommendation: Direct the Board President to complete the 2018 Ballot for Special District Member and Special District Alternate Member on Consolidated Redevelopment Oversight Board.

5.2 At-will Finance Manager Position

Recommendation: Approve salary range of $8,750-$11,500 for the Finance and Customer Service Manager recruitment.

5.3 Bethany Booster Station Main Replacement Project

Recommendation: Receive a report on the Bethany Booster Station Main Replacement project and ratify the contract with William A. Thayer Construction, dated January 19, 2018, in the amount of $121,003.55.

6. Staff Reports

6.1. District Counsel - oral 6.2. General Manager - oral 6.3. Finance 6.4. Operations

7. Individual Directors Reports

Individual Directors Reports – oral

- Anticipated travel meeting or other expenses

- ACWA and ACWA/JPIA updates

- Items not on the Agenda

8. Written Communications and Correspondence

8.1 County of Santa Cruz - 2017 Water Resources Management Report

8.2. Dept. of Water Resources - Urban Water Management Plan Requirements Addressed

9. Community Relations (none)

10. Closed Session

10.1 Real Property Negotiation (Government Code 54956.8) Property: APN 024-021-24

Owner: The Beagle Family Trust District Negotiator: David McNair

Negotiating Parties: Robyn S. Beagle Under Negotiation: Terms of a water pipeline and access easement

11. Report on Closed Session and Additional Items

12. Adjournment

Scotts Valley Water District Board of Directors Agenda -- Thursday, February 8, 2018 Page 3

Board of Directors Meeting Calendar

Regular Board Meetings (Santa Margarita Community Room) • 03/08/2018 • 04/12/2018 • 05/17/2018

Committee Meetings (District Conference Room) • Finance & Personnel Committee – 02/20/2018 • Water Resources & Engineering Committee – 02/21/2018 • Executive & Public Affairs Committee – TBD

Santa Margarita Groundwater Agency Board of Directors (SGWMA) – 02/28/2018 (Santa Margarita Community Room)

ACWA Events

DC 2018 – Annual Washington D.C. Conference 02/27/2018 – 03/01/2018

2018 Legislative Symposium 03/14/2018 Sacramento Convention Center

California Water Policy Conference 27 03/22/2018 – 03/23/2018 UC Davis Conference Center

2018 Spring Conference 05/08/18 – 05/11/18 Sacramento

Other Trainings/Workshops

Water Education Foundation Water 101: The Basics and Beyond 02/22/2018 Sacramento

AVAILABILITY OF PUBLIC RECORDS PROVIDED TO THE BOARD OF DIRECTORS: THE DISTRICT W ILL MAKE

AVAILABLE FOR PUBLIC REVIEW ANY PUBLIC RECORDS FURNISHED TO THE BOARD OF DIRECTORS AT THE SAME

TIME SUCH RECORDS ARE FURNISHED TO THE BOARD OF DIRECTORS. SUCH RECORDS SHALL BE AVAILABLE

AT THE DISTRICT OFFICE DURING NORMAL BUSINESS HOURS.

PUBLIC ACCESS – ACCOMMODATIONS UNDER THE ADA: PURSUANT TO TITLE II OF THE AMERICANS WITH

DISABILITIES ACT OF 1990, THE SCOTTS VALLEY WATER DISTRICT REQUESTS THAT ANY PERSON IN NEED OF ANY

TYPE OF SPECIAL EQUIPMENT, ASSISTANCE OR ACCOMMODATION(S) IN ORDER TO EFFECTIVELY COMMUNICATE

AT THE DISTRICT’S PUBLIC MEETING PLEASE MAKE SUCH A REQUEST TO THE DISTRICT OFFICE AT THE ABOVE

ADDRESS OR BY CALLING (831) 438-2363 A MINIMUM OF THREE (3) WORKING DAYS PRIOR TO THE SCHEDULED

MEETING. ADVANCE NOTIFICATION WITHIN THIS GUIDELINE WILL ENABLE THE DISTRICT TO MAKE REASONABLE

ARRANGEMENTS TO ENSURE ACCESSIBILITY.

Board of Directors

Regular Meeting 7:00 p.m.

Thursday, January 11, 2018

Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California

Minutes

1. Convene Meeting

1.1. Call to Order and Roll Call President Perri called the meeting to order at 7:00 p.m. in the Santa Margarita Community Room, 2 Civic Center Drive, Scotts Valley, California.

Present:

Directors Staff Guests David T. Hodgin Robert Bosso Mark Adato Wade Leishman Piret Harmon Bill Ekwall Chris Perri David McNair Ned Hogan Danny Reber Donna Paul Bruce McPherson Ruth Stiles Robert Romero David Young

1.2. Pledge of Allegiance and Invocation President Perri led the pledge of allegiance and Vice President Reber provided the invocation.

1.3. Closed Session Report There was no closed session report.

1.4. Additions/Deletions to the Agenda There were no additions or deletions to the agenda.

1.5. Oral Communications There were no oral communications.

2. Administrative Items

2.1. Approval of Minutes – December 14, 2017, Regular Board Meeting

MOTION: Hodgin/Leishman to approve the minutes of the December 14, 2017, regular Board meeting. The motion carried by voice vote with Director Stiles abstaining.

2.2. Presentation

2.2.1 Monterey Bay Community Power

The Future is Carbon Free Energy Presented by Marc Adato, Community Outreach & Events Coordinator, Monterey

Draft

er at 7:00 p.m. in the Santa Mat 7:00 p.m. in the Sanve, Scotts Valley, California.tts Valley, California.

Staff Guests Guests f aftRobert Bossort Bosso Mark AdaM Piret Harmonet Harmon Bill EkBill E David McNairavid McNair rr NeN

Donna Paulonna Paul

ofof AllAllff egegiianance ce and Invocanvocatit onesident Perri led the psident Perri led the ledge of allegiancege of al and

he ihe invocationnvo .

ClosClosed Session Reportt There was no Ther closed session ssion report.

dditions/Deletions to the Agendadditions/Deletions to the Agrere were no additions or delwere no additions or d

mmunicationsmmunicationse no oral come no oral com

ss

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Bay Community Power. Click here to view the presentation.

2.3. Committee Meeting Reports

2.3.1 Executive & Public Affairs Committee 12/19/17

President Perri reported that compensation will be discussed at the Board retreat and that Miller Maxfield will be here to discuss our approach to public relations and potential improvements.

2.3.2 Finance & Personnel Committee There was no Finance and Personnel Committee Report.

2.3.3 Water Resources & Engineering Committee 12/19/17

President Perri reported that a leak adjustment appeal request was discussed and that the Committee recommends the Board grant an exception and authorize a leak adjustment in this case. Future committee agendas will have a standing item for leak adjustment appeals along with a report on leak adjustments granted.

2.4. Committee Assignments 2018

Executive & Public Affairs: Perri, Reber, and Stiles (alternate) Finance & Personnel: Hodgin, Perri, and Leishman (alternate) Resources & Engineering: Stiles, Leishman, and Reber (alternate)

2.5. Santa Margarita Groundwater Agency (SMGWA) Board Meeting There was no Santa Margarita Groundwater Agency Board Meeting.

3. Consent There were no items on consent.

4. Public Hearings There were public hearings scheduled.

5. General Business Items

5.1. Leak Adjustment Appeal

President Perri provided the staff report.

Ned Hogan addressed the Board on this item.

MOTION: Reber/Stiles to grant this customer a one-time exception to the five-year rule and approve a leak adjustment credit of 75%. The motion carried by a unanimous voice vote.

5.2. Rescind Outdated Resolution

General Manager Harmon provided the staff report.

The check signing authority was discussed briefly and may be reviewed by the Finance and Personnel Committee at a future date.

Draft

Report.Report.

mittee mittee 12/19/17 /19/17

stment appeal requestnt appeal request was discuwasBoard grant an exceptionant an exception and authorand a

mmittee agendas will have a standing item fondas will have a standing item foreport on leak adjustments granted.adjustments g

018

airs: Perri, Rebererri, R , and Stiles (alternate)and Stiles (alternatel: Hodgin, Perriodgin, Perri, , and Leishman (aland Leishma

gineering: Stiles, Leishmaniles, Leishma , and Reber d Reber

arita Groundwater Agency (dwater A SMMGWGWA)W Board Boardas no Santa Margarita Groundwater Agency Brgarita Groundwater Agency B

were no items on consent.ere no items on consent.

blic Hearinlic He gs e were public hearings scheduled.e were public hearings scheduled

Business Busine Items

justment Appealjustment Appeal

erri providederri provided

esseess

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MOTION: Hodgin/Stiles to adopt Resolution No. 01-18 rescinding Resolution No. 11-06. The motion carried by a unanimous roll call vote.

6. Staff Reports

6.1. District Counsel

District Counsel Bosso reported that a couple of new water rate cases are in the appellate courts and the California Supreme Court has not taken any action on the Proposition 218 cases.

6.2. General Manager

The General Manager’s report is appended.

6.3. Finance

The Finance report was accepted without comment.

6.4. Operations

Operations Manager McNair reported that work continues on the repairs to Bethany Booster Station. Equipment installation has been completed in-house by staff. The lowest main installation quote is $119,000 and staff is working with the vendor to reduce costs. The replacement well (7A) project continues to have problems. The most recent being the need to re-bore the well because the diameter was not big enough. The casing went in today and it should be ready for pressure testing next week. The Drillers expect to finish the first week of February. It will still be a couple of months before the project is complete. The neighbor’s patience is fading.

6.4.1 Demand, Production and Rainfall The demand, production and rainfall information was accepted without comment.

6.5. Administration The May 10, 2018, Board Meeting will be moved to May 17, 2018, to accommodate the ACWA Spring conference. The September meeting may need to be rescheduled.

7. Individual Directors Reports

President Perri reported that he drove by the well site was quite impressed by the size of the drill rig.

Director Hodgin reported that he will be attending ACWA Board Meeting on February 1-2, 2018 in Sacramento.

8. Written Communications and Correspondence There were no written communications or correspondence.

9. Community Relations There were no community relations items.

10. Closed Session

Draft

not

thout comment.ment.

r reported that work continues onhat work continues on the repairs Equipment insinstallation has been completed itallation has been complete

n installation quote is $119,000 and staff is woquote is $119,000 and staff is wocosts. The replacement wellplacement well (7 (7A) project conproject c

most recent being the need to ret being the need to -bore the wre the was not big enough. The casing went in today aough. The casing went in today

testing next week. The Drillers expect to finweek. The Drillers expect to finstill betill be a couple of months before the projeca couple of months before the projec

tience is fading. tience is fading.

6.4.1 Demand, Production and Rainfall6.4.1 Demand, Production and RainfallThe demand, production and rainfall inThe demand, production and

AdministrationAdministMay 10, 2018May 10, , Board Meetird Mee

WA Spring conferencWA Spring conferen

orors Reports Repor

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There was no closed session.

11. Report on Closed Session and Additional Items There was no report on closed session or addition items.

12. Adjournment MOTION: Reber/Stiles to adjourn the meeting at 8:17 p.m.

Submitted: Approved:

Donna Paul, Asst. to General Manager Chris Perri, President

Attest:


Draft

proved: roved: ftChris Perri, President Presiden

Draneral Manager

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STAFF REPORT – General Items Scotts Valley Water District

Date: January 11, 2018 To: Board of Directors From: General Manager 1. Laura Brown, General Manager of Soquel Creek Water District in 1995-2012 passed away on

December 23, 2017. She was diagnosed in 2012 with a particularly aggressive and incurable form of cancer but continued leading a high quality and productive life despite the odds. After a long career in public service at the City of Santa Cruz, City of Monterey and SqCWD, she became a consultant with HydroMetrics WRI working with water agencies on groundwater management and policy issues. She will be sorely missed by all of us in the water industry.

2. The California Department of Water Resources (DWR) snow survey conducted on January 3rd in the Sierra Nevada found little snowpack. Measurements at Phillips Station revealed a snow water equivalent of 0.4 inches, 3% of the average of 11.3 inches measured since 1964. Snow water equivalent (SWE) is the depth of water that theoretically would result if the entire snowpack melted instantaneously. On average, the snowpack supplies about 30% of California water needs. California’s exceptionally high precipitation last winter and spring has resulted in above-average storage in 154 reservoirs tracked by the department – estimated 24.1 million acre-feet (MAF) or 110% of the 21.9 MAF average for the end of the year.

3. California Assembly Bill 746 (AB 746) requiring all community water systems that serve a school site of a local educational agency with a building construction before 2010, to test for lead in the potable water system of the school site on or before July 1, 2019. Section 1162777 was added to the Health and Safety Code (HSC 1162777) outlining these requirements, which became effective on January 1, 2018. SVWD conducted the lead testing at the public schools in our service area in response to the Division of Drinking Water domestic water supply permit amendment in 2017. Therefore, the public schools are considered to have met the requirements of HSC 1162777 and no further testing is required, although we will be working with the private schools to ensure their compliance as well.

4. The regional educational event, Connecting the Drops – Working Together for Water, hosted by the County of Santa Cruz, Regional Water Management Foundation, and the Santa Cruz Local Agency Formation Commission, is taking place on February 1st 6:30-9pm at New Brighton Middle School. Keynote speaker Taryn Ravazzini from DWR, information Stations on various water topics and panel discussion on groundwater management and watershed planning involving representatives from different water and natural resource agencies in the County.

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2018 STANDING COMMITTEES Revised 1/11/2018

Standing Committees are composed to review, study and discuss proposals, reports and issues in the specific area of expertise; advise and recommend actions to the Board of Directors on these topics; and to provide feedback to the General Manager and staff. Standing Committee Meetings will be publicly noticed 72 hours in advance.

Committee Focus Area Members

Executive and Public Affairs 3rd Monday 4 p.m.

General Manager evaluation; succession planning (GM and Board); other items that do not fit within the defined boundaries of other committees.

Community relations; communication strategy and outreach; public information.

Perri Reber Alternate: Stiles President and Vice President Alternate: Past President

Finance and Personnel 3rdst Tuesday 4 p.m.

Fiscal (incl. investment and purchasing) policies; financial reports; annual audit; internal audit, rates, fees and charges; operating budget; grants.

New positions; wage and benefit adjustments; potential disciplinary actions; training and safety programs; ethics and discrimination issues; MOU contract.

Hodgin Perri Alternate: Leishman (President serves on the Finance Committee)

Water Resources and Engineering 3rd Wednesday 4 p.m.

Water supply augmentation projects; water resource issues; water use efficiency; water quality; conservation programs.

Capital and maintenance projects (infrastructure and facilities); property acquisition and disposition; standard specifications; CIP budget.

Stiles Leishman Alternate: Reber

Santa Margarita Groundwater Agency (SMGWA) Board Perri, Stiles Alternate: Reber

Association of California Water Agencies (ACWA) Region 5 Board Hodgin (Vice Chair)

ACWA Committee: Energy Perri

ACWA Committee: Groundwater Perri & Derrik Williams

ACWA Committee: Legal Affairs Robert Bosso

ACWA Committee: Membership Perri (Vice Chair)

ACWA Committee: Water Quality Hodgin

ACWA Joint Powers Insurance Authority (ACWA/JPIA) Board Hodgin, Perri (alternate)

ACWA/JPIA Executive Committee Hodgin

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AGENDA REPORT Scotts Valley Water District

Date: February 8, 2018

To: Board of Directors

Subject: Election for Special District Member and Alternate on the Consolidated Redevelopment Oversight Board for Santa Cruz County

Reason: To comply with California Health & Safety and Revenue & Taxation Codes

SUMMARY

Recommendation: Direct the Board President to complete the 2018 Ballot for Special District Member and Special District Alternate Member on Consolidated Redevelopment Oversight Board.

Fiscal Impact: There is no fiscal impact associated with this action.

Previous Related Action: In November 2017, the Board received a call for nominations.

BACKGROUND: SB 107, adopted in September 2015, establishes a Consolidated Redevelopment Oversight Board for Santa Cruz County and specifies it duties and appointments. It requires certain cash assets of the five former redevelopment agencies be distributed to the county, cities, school districts and special districts that share in the general 1% sales tax. The independent special districts get a seat on the Board to help ensure that proper distributions are made.

DISCUSSION:

There are two nominations for the regular position representing the independent special districts:

Reed Geisreiter Santa Cruz Port District David Hodgin Scotts Valley Water District

Background information on the candidates is provided.

There were no nominations for the alternate position. Each District is asked to indicate whether or not it would like the alternate position offered to the runner-up in the election for the regular position.

The election is being conducted by mail and the ballots will be opened and tallied at 10:00 a.m. on Friday, March 2, 2018, at the LAFCO office.

Submitted,


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Subject: At-will Finance Manager Position

Reason: To support Strategic Goal No. 5 Organizational Vitality: Commit to retaining the highest quality employees and board members

SUMMARY Recommendation: Approve salary range of $8,750-$11,500 for the Finance and Customer

Service Manager recruitment.

Fiscal Impact: Monthly salary for the current position is $9,003. The offered salary will be determined based on the candidate’s qualification. Any changes would impact FY 2018 budget for estimated 3 months and will be incorporated into the upcoming years’ budgets.

Previous Related Action: On August 10, 2017, the Board approved the compensation adjustments for Finance Manager, Operations Manager and Assistant to General Manager classifications as part of the annual performance evaluation process.

BACKGROUND Finance Manager is one of the four at-will exempt positions in the District. The at-will positions are employed through employment agreements and not subject to the terms of the Scotts Valley Water District Employees Union Memorandum of Understanding. As such, they are not governed by the step salary range schedule but are compensated based on their qualifications, performance and market benchmarking.

DISCUSSION The current Finance Manager has notified the General Manager of her intention to resign from the job effective March 2, 2018. To fill the anticipated vacancy, the District has started a recruitment process. Following the common practice, the job description is reviewed in consideration of the District’s operational needs at the time of the vacancy and any necessary changes made to the definition, duties, and qualifications. The previous job description of the Finance Manager was significantly altered to reflect the responsibilities of the job and expectations to the incumbent.

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Although the employment contract with the selected candidate will state the agreed upon salary (based on the candidate’s qualifications), for the recruitment purposes it is advantageous and beneficial to list a salary range to attract a larger pool of candidates. The market compensation benchmarking shows that the median salary range for similar positions at the Santa Cruz County public utilities is $8,750-$11,750. In alignment with the board guidelines for the compensation, the recommended monthly salary range for the Finance and Customer Service Manager is $8,750-$11,500.

Submitted,

Piret Harmon General Manager

Enclosed: Job Specification Finance and Customer Service Manager

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Position: Finance and Customer Service Manager

Reports to: General Manager

Definition: Under general direction, manages the Finance/Customer Service Division with primary responsibility for the effective operations of the finance, accounting, payroll, utility billing and customer service functions of the District. This is an executive level a t -w i l l exempt position providing leadership and maintaining oversight for diverse and complex functions related to financial and customer service activities.

Supervision: Reports to and receives direction from the General Manager. Provides supervision and oversees the work of the Finance/Customer Service Division.

Typical Duties: Duties may include, but are not limited to, the following:

Planning, structuring, implementing and evaluating the activities related to financial andutility customer service operations; Overseeing all accounting work, including maintenance of the g eneral ledger, accountsreceivables, accounts payables, and fixed assets; Overseeing customer service activities such as account setup, billing, and collection;Providing effective leadership and supervision involving goal setting, motivation, coaching,evaluation and accountability;Ensuring compliance with various regulations, establishing and maintaining proper internalcontrols;Coordinating payroll activities;Responsibility for banking and investment funct ions;Preparing budget documents, financial reports and regulatory filings;Coordinating the annual audit and CAFR preparation;Developing reports and preparing materials for the Board of Directors, FinanceCommittee and others;Representing the District in the public, the financial community, vendors and others whilemaintaining confidentiality of management decisions and personnel.

Minimum Qualifications:

Knowledge: Principles and methods of financial analysis in development and monitoring of budgets, projections, and investments; Generally Accepted Accounting Principles (GAAP) and/or Governmental Accounting Standards Board (GASB); principles of banking and investments, risk management, purchasing and payroll; general practices of establishing goals and planning work; staff supervision, motivation and evaluation; customer service procedures including billing,

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Scotts Valley Water District Finance Manager Page 2

collections and recordkeeping; principles and practices of policy development and implementation; pertinent regulatory framework; computer applications related to financial and business services.

Skills: Organizing own work and work of a team; setting priorities and making decisions independently with a maximum accuracy despite frequent interruptions; performing complex accounting and financial analysis.

Abilities: Quickly learn policies and procedures; adapt to and embrace change; lead and inspire a diverse team of professionals; act in an advisory capacity to the executive team and Board of Directors.

Education and Experience: Any combination of experience and education that has produced the necessary knowledge, skills and abilities is qualifying. A typical way of obtaining the required qualifications would be:

Experience: Seven to ten years related experience with demonstrated progressive responsibilities. At least two years of it must include the supervision of a professional staff in financial analysis and accounting.

Education: Bachelor’s degree in accounting, finance, public administration or related field. Additional related education may be substituted for experience or experience might be substituted for education.

Desirable Qualifications: Familiarity with governmental accounting and prior work experience at a public agency or water utility.

License or Certification: Must possess and maintain a valid California Driver’s License and a safe driving record. Certified Public Accountant license is desirable.

Other Requirements: Must take part in all safety and training programs for staff, must have sufficient eyesight to re d standard text on paper and computer screen, must have acute hearing, must be able and willing to lift, drag and push files and records weighing up to 25 pounds.

Revised January 2018

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Subject: Bethany Booster Station Main Replacement Project

Reason: To comply with District Administrative Code Title 3 Internal Functions of District

SUMMARY

Recommendation: Receive a report on the Bethany Booster Station Main Replacement project and ratify the contract with William A. Thayer Construction, dated January 19, 2018, in the amount of $121,003.55

Fiscal Impact: Total amount of the contract is $121,003.55 that will be funded from reserves.

Previous Related Action: None

BACKGROUND On July 6, 2017, a water main erupted under the Bethany Booster Station causing extensive damage to the station and water main. Bethany Booster is a critical facility that provides water to the northern portion of the District’s service area. As an interim measure, staff constructed a temporary pump station and a main to bypass the damaged infrastructure. The pump building repairs have been completed and new equipment installed. The District has been unsuccessful in soliciting quotes for the water main replacement work until recently. DISCUSSION All quotes received except for one were informal competitive bids ranging from $121,003 to $192,530 while the engineering estimate projected the costs to be under $100,000. William A. Thayer Construction submitted a bid through the National Joint Powers Alliance (NJPA) contracting process, which complies with District’s purchasing requirements. The contract with William A. Thayer Construction was executed on January 19, 2018, with work commencing February 5, 2018. Submitted, Piret Harmon General Manager Enclosed: William A. Thayer Construction Contract

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STAFF REPORT Scotts Valley Water District

Date: February 8, 2018 To: Board of Directors From: General Manager

Financial Reports for Period Ending December 31, 2017 (at 50% of the fiscal year remaining)

Summary: Total Year-to-Date (YTD) revenue $3,180,644 is above YTD expenses $2,382,497 by $798,147. A few noteworthy items to keep in mind:

Prior year (FY 2017) revenue report did not include accrued water sales revenue andtherefore appears deflated in comparison with FY 2018 in the off-billing months

Expense report does not include debt principal payments, depreciation and projectexpenditures.

Revenue: Total YTD potable water sales revenue is $1,958,333 (56% of the yearly budget) and recycled water sales revenue $287,633 (61% of the yearly budget). Total YTD potable water services revenue is $782,125 (45%) and recycled water services revenue $4,730 (28%). Total new connections revenue is $85,453 (13%) and other non-operating revenue $62,369 (7%).

Expense: Due to the allocation of 10% of general and administrative costs from Fund 01 to Fund 02 not processed yet, the expenses are inflated in Fund 01. Combined expenses are below budget in all categories except Operations with the total YTD expenses of $2,382,497 at 46% of the yearly budgeted amount. The project expenditures for the first six months of the fiscal year total $679,747.

Fund Balance: Cash reserves at the end of the month at about $1.6M with $1.1M booked in Accounts Receivables and $0.5M invested in CD’s.

Attachments: 1) Budget Balance 7/1/2017-12/31/2017 2) Budget Balance (2) 7/1/2017-12/31/20173) Budget Status Revenue 7/1/2017-12/31/20174) Budget Status Expense 7/1/2017-12/31/20175) Balance Sheet Fund 01 as of 12/31/20176) Balance Sheet Fund 02 as of 12/31/20177) Check Register December 20178) Quarterly Investment Summary 10/1/2017-12/31/2017

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Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual

Variance % FY 2018 Budget

Balance %

Fund 01 Potable WaterFund 01 Revenue: * 1,861,921$ 2,885,431$ 1,023,510$ 155% 6,774,880$ 3,889,449$ 57%Fund 01 Rev Excl Grants & Cap Contributions

1,861,921$ 2,884,711$ 1,022,790$ 155% 6,774,880$ 3,890,169$ 57%

Fund 01 Expenses: ** 2,225,709$ 2,359,141$ 133,432$ 106% 4,707,029$ 2,347,888$ 50%

Fund 02 Recycled WaterFund 02 Revenue: 228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%Fund 02 Rev Excl Grants & Cap Contributions

228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%

Fund 02 Expenses: ** 62,124$ 23,356$ (38,768)$ 38% 512,829$ 489,473$ 95%

Period: 7/1/17-12/31/17 (6 months)Total Revenue * 2,090,518$ 3,180,644$ 1,090,126$ 152% 7,301,145$ 4,120,501$ 56%Total Revenue Excl Grants & Cap Contributions 2,090,518$ 3,179,924$ 1,089,406$ 152% 7,301,145$ 4,121,221$ 56%Total Expenses ** 2,287,833$ 2,382,497$ 94,664$ 104% 5,219,858$ 2,837,361$ 54%

Net Revenue (197,315)$ 798,147$ 995,462$ -405% 2,081,287$ 1,283,140$ 62%Net Revenue Excl Grants & Cap Contributions (197,315)$ 797,427$ 994,742$ -404% 2,081,287$ 1,283,860$ 62%

Period: 7/1/17-11/30/17 (5 months)Total Revenue * 1,566,451$ 2,761,000$ 775,255$ 150% 7,301,145$ 4,977,177$ 68%Total Revenue Excl Grants & Cap Contributions 1,566,451$ 2,760,280$ 774,535$ 150% 7,301,145$ 4,977,897$ 68%Total Expenses ** 1,760,243$ 1,947,053$ 74,967$ 105% 5,219,858$ 3,753,839$ 72%

Net Revenue (193,792)$ 813,947$ 700,288$ 544% 2,081,287$ 1,223,338$ 59%Net Revenue Excl Grants & Cap Contributions (193,792)$ 813,227$ 699,568$ 544% 2,081,287$ 1,224,058$ 59%

* FY 2017 revenue does not include accrued water sales and appears deflated in comparison with FY 2018 in the off-billing months** Expenses capture operating expenses and do not include debt principal payments, depreciation and project expenditures

Budget Status - Balance

FY Remain:

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Excluding Revenue Accruals in FY 2018 (for better comparison with FY 2017)

Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual


Balance %

Fund 01 Potable WaterFund 01 Revenue: * 1,861,921$ 2,608,010$ 746,089$ 140% 6,774,880$ 4,166,870$ 62%Fund 01 Rev Excl Grants & Cap Contributions

1,861,921$ 2,607,290$ 745,369$ 140% 6,774,880$ 4,167,590$ 62%

Fund 01 Expenses: ** 2,225,709$ 2,359,141$ 133,432$ 106% 4,707,029$ 2,347,888$ 50%

Fund 02 Recycled WaterFund 02 Revenue: 228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%Fund 02 Rev Excl Grants & Cap Contributions

228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%

Fund 02 Expenses: ** 62,124$ 23,356$ (38,768)$ 38% 512,829$ 489,473$ 95%


Net Revenue (197,315)$ 520,726$ 718,041$ -264% 2,081,287$ 1,560,561$ 75%Net Revenue Excl Grants & Cap Contributions (197,315)$ 520,006$ 717,321$ -264% 2,081,287$ 1,561,281$ 75%


Net Revenue (193,792)$ 198,115$ 444,614$ 382% 2,081,287$ 1,479,012$ 71%Net Revenue Excl Grants & Cap Contributions (193,792)$ 197,395$ 443,894$ 382% 2,081,287$ 1,479,732$ 71%

* Revenue does not include accrued water sales** Expenses capture operating expenses and do not include debt principal payments, depreciation and project expenditures

FY Remain:

Budget Status - Balance, Modified

6.3 - 3

Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual

Variance % FY 2018 Budget Balance %

Fund 01 Potable Water

R10 Operating Revenue - Water Sales01-000-41101 Residential Consumption - SF 607,224$ 1,129,070$ 521,846$ 186% 1,815,870$ 686,800$ 38%01-000-41102 Residential Consumption - MF 116,027$ 65,248$ (50,779)$ 56% 246,760$ 181,512$ 74%01-000-41103 CII Consumption - Commercial 268,946$ 492,215$ 223,269$ 183% 1,209,100$ 716,885$ 59%01-000-41104 CII Consumption - Industrial 50,740$ -$ (50,740)$ 0% -$ -$ 01-000-41106 CII Consumption - Other 42,456$ 43,508$ 1,052$ 102% -$ (43,508)$ 01-000-41105 Irrigation Consumption 115,073$ 221,047$ 105,974$ 192% 220,080$ (967)$ 0%01-000-41200 Other - Bulk Water 9,386$ 7,246$ (2,140)$ 77% 21,050$ 13,804$ 66%

R10 Sub Totals: 1,209,851$ 1,958,333$ 748,482$ 162% 3,512,860$ 1,554,527$ 44%

R20 Operating Revenue - Water Services01-000-41300 Other - Late Penalty 14,030$ 14,050$ 20$ 100% 34,120$ 20,070$ 59%01-000-42100 Standby Basic Meter Charge 537,606$ 741,630$ 204,025$ 138% 1,658,090$ 916,460$ 55%01-000-42121 Standby FP Basic Meter Charge 32,794$ 20,220$ (12,574)$ 62% 42,480$ 22,260$ 52%01-000-43300 Other Operating Revenue 7,850$ 6,225$ (1,625)$ 79% 13,000$ 6,775$ 52%

R20 Sub Totals: 592,280$ 782,125$ 189,845$ 132% 1,747,690$ 965,565$ 55%

R25 Operating Revenue - New Connections01-000-42101 Other Meter Fee 7,365$ 1,224$ (6,141)$ 17% 10,000$ 8,776$ 88%01-000-42102 Other Capacity Fee 9,961$ 81,124$ 71,163$ 814% 666,000$ 584,876$ 88%01-000-42120 Other FP Meter Fee -$ 204$ 204$ 410$ 206$ 50%01-000-43100 Other Will Serve 1,236$ 250$ (986)$ 20% 1,000$ 750$ 75%01-000-43200 Other Dev Proj Review 13,518$ 2,651$ (10,866)$ 20% 5,000$ 2,349$ 47%01-000-44100 Other Fire Hydrants 3,430$ -$ (3,430)$ 0% -$ -$

R25 Sub Totals: 35,510$ 85,453$ 49,944$ 241% 682,410$ 596,957$ 87%

R30 Non-Operating Revenue - Other01-000-46000 Property Taxes 23,728$ 42,154$ 18,426$ 178% 817,000$ 774,846$ 95%01-000-47110 Interest & Dividend 1$ 4,271$ 4,270$ 8,480$ 4,209$ 50%01-000-47115 Interest & Dividend - Restrict 3,609$ -$ (3,609)$ 0% -$ -$ 01-000-47120 Interest - LAIF 0$ 3,456$ 3,456$ 4,440$ 984$ 22%01-000-47520 Misc. Non-Operating Revenue 66$ 10,575$ 10,508$ 2,000$ (8,575)$ -429%01-000-47530 Unrealized Gain/Loss on Invest (3,123)$ (1,656)$ 1,467$ 53% -$ 1,656$

R30 Sub Totals: 24,281$ 58,799$ 34,518$ 242% 831,920$ 773,121$ 93%

R40 Non-Operating Revenue - Grants01-000-45260 Local Grant - City of SV -$ 720$ 720$ -$ (720)$

R40 Sub Totals: -$ 720$ 720$ -$ (720)$

Fund 01 Revenue: 1,861,921$ 2,885,431$ 1,023,510$ 155% 6,774,880$ 3,889,449$ 57%Fund 01 Rev Excl Grants & Cap Contributions

1,861,921$ 2,884,711$ 1,022,790$ 155% 6,774,880$ 3,890,169$ 57%

Budget Status - Revenue

FY Remain:

6.3 - 4

Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual

Variance % FY 2018 Budget Balance %

Budget Status - Revenue

FY Remain:

Fund 02 Recycled Water

R10 Operating Revenue - Water Sales02-000-41105 Irrigation Consumption 210,313$ 272,757$ 62,444$ 130% 443,400$ 170,643$ 38%02-000-41200 Other - Bulk Water 2,626$ 14,876$ 12,250$ 567% 25,000$ 10,124$ 40%

R10 Sub Totals: 212,939$ 287,633$ 74,694$ 135% 468,400$ 180,767$ 39%

R20 Operating Revenue - Water Services02-000-42100 Standby Basic Meter Charge -$ 4,730$ 4,730$ 16,630$ 11,900$ 72%

R20 Sub Totals: -$ 4,730$ 4,730$ 16,630$ 11,900$ 72%

R25 Operating Revenue - New Connections02-000-42101 Other Meter Fee -$ -$ -$ 570$ 570$ 100%02-000-42102 Other Capacity Fee -$ -$ -$ 29,420$ 29,420$ 100%02-000-42130 GW Rep-Impact Fees 11,526$ -$ (11,526)$ 0% -$ -$

R25 Sub Totals: 11,526$ -$ (11,526)$ 0% 29,990$ 29,990$ 100%

R30 Non-Operating Revenue - Other02-000-47110 Interest & Dividend 3,000$ 2,850$ (150)$ 95% 11,245$ 8,395$ 75%02-000-47115 Interest & Dividend - Restrict 29$ -$ (29)$ 0% -$ -$ 02-000-47520 Other Non-Operating Revenue 1,103$ -$ (1,103)$ 0% -$ -$

R30 Sub Totals: 4,132$ 2,850$ (1,282)$ 69% 11,245$ 8,395$ 75%

Fund 02 Revenue: 228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%Fund 02 Rev Excl Grants & Cap Contributions

228,597$ 295,213$ 66,616$ 129% 526,265$ 231,052$ 44%

Revenue Totals: 2,090,518$ 3,180,644$ 1,090,126$ 152% 7,301,145$ 4,120,501$ 56%Revenue Total Excl Grants & Cap Contributions 2,090,518$ 3,179,924$ 1,089,406$ 152% 7,301,145$ 4,121,221$ 56%

6.3 - 5

Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual


Balance %

Combined Fund 01 and Fund 02

Dept AdministrationE01 Salaries & Benefits 213,397$ 222,111$ 8,715$ 104% 477,480$ 255,369$ 53%E03 Services 167,795$ 124,584$ (43,211)$ 74% 321,170$ 196,586$ 61%E05 Supplies 10,229$ 4,853$ (5,376)$ 47% 22,300$ 17,447$ 78%E10 Source of Supply -$ -$ -$ 390,000$ 390,000$ 100%E70 Other -$ -$ -$ 15,000$ 15,000$ 100%

Dept 100 Sub Totals: 391,421$ 351,549$ (39,872)$ 90% 1,225,950$ 874,401$ 71%

Dept Finance/Customer ServiceE01 Salaries & Benefits 193,478$ 180,354$ (13,124)$ 93% 416,640$ 236,286$ 57%E03 Services 164,966$ 96,311$ (68,655)$ 58% 152,960$ 56,649$ 37%E05 Supplies 4$ -$ (4)$ 0% 3,000$ 3,000$ 100%E35 Customer Accounts 38,439$ 40,893$ 2,455$ 106% 74,770$ 33,877$ 45%E70 Other 67,110$ 967$ (66,143)$ 1% 1,100$ 133$ 12%E80 Interest Expense 86,363$ 51,815$ (34,548)$ 60% 103,538$ 51,723$ 50%

Dept 200 Sub Totals: 550,360$ 370,340$ (180,020)$ 67% 752,008$ 381,668$ 51%

Dept OperationsE01 Salaries & Benefits 633,059$ 733,377$ 100,318$ 116% 1,415,410$ 682,033$ 48%E03 Services 58,212$ 58,244$ 32$ 100% 171,740$ 113,496$ 66%E05 Supplies 14,069$ 11,174$ (2,896)$ 79% 31,500$ 20,326$ 65%E07 General Production 40,230$ 29,820$ (10,410)$ 74% 82,000$ 52,180$ 64%E10 Source of Supply 19,031$ 49,851$ 30,820$ 262% 80,000$ 30,149$ 38%E15 Pumping 198,988$ 292,978$ 93,991$ 147% 364,000$ 71,022$ 20%E20 Water Treatment 104,037$ 123,369$ 19,332$ 119% 430,000$ 306,631$ 71%E25 Transmission & Distribution 57,892$ 90,702$ 32,810$ 157% 148,000$ 57,298$ 39%E35 Conservation 708$ 1,053$ 345$ 149% 2,000$ 947$ 47%E70 Other -$ 87,247$ 87,247$ -$ (87,247)$

Dept 300 Sub Totals: $ 1,126,227 1,477,816$ 351,588$ 131% 2,724,650$ 1,246,834$ 46%

Dept EngineeringE01 Salaries & Benefits 49,867$ 35,955$ (13,913)$ 72% 110,120$ 74,165$ 67%E03 Services 12,492$ 6,955$ (5,536)$ 56% 97,430$ 90,475$ 93%E05 Supplies 157$ 15$ (142)$ 10% 1,000$ 985$ 99%E10 Source of Supply 13,074$ -$ (13,074)$ 0% -$ -$ E15 Pumping 1,155$ -$ (1,155)$ 0% -$ -$ E25 Transmission & Distribution 6,774$ -$ (6,774)$ 0% -$ -$

Dept 400 Sub Totals: 83,519$ 42,925$ (40,594)$ 51% 208,550$ 165,625$ 79%

Dept WUE/ConservationE01 Salaries & Benefits 46,193$ 49,656$ 3,462$ 107% 98,940$ 49,284$ 50%E03 Services 3,990$ 332$ (3,659)$ 8% 13,000$ 12,668$ 97%E05 Supplies 25,516$ 20,508$ (5,008)$ 80% 56,500$ 35,992$ 64%

Dept 500 Sub Totals: $ 75,700 70,495$ (5,204)$ 93% 168,440$ 97,945$ 58%

Dept Board of DirectorsE01 Salaries & Benefits 54,988$ 63,708$ 8,720$ 116% 122,160$ 58,452$ 48%E03 Services 5,619$ 4,549$ (1,070)$ 81% 16,400$ 11,851$ 72%E05 Supplies -$ 1,115$ 1,115$ 1,700$ 585$ 34%

Dept 900 Sub Totals: 60,607$ 69,372$ 8,766$ 114% 140,260$ 70,888$ 51%

Budget Status - Expense

FY Remain:

Incl Bethany Booster Repairs (& purchasing of back-up Pumps/Motors/Assemblies for Well 10A, 11A, 11B)

$

Incl Auto & Liability Ins payment of $57,272 for FY2018

Capacity Buy-Back for 1" PW service converted to 1" RW service. New in FY2018

Includes $38,570 Invoice for Emergency Response to pull/replace Well 3b pump & motor

Includes over 400 new meter purchases that will be installed throughout the upcoming year

6.3 - 6

Period: 7/1/17-12/31/17 50%

FY 2017YTD Actual

FY 2018YTD Actual


Balance %

Budget Status - Expense

FY Remain:

SummaryE01 Salaries & Benefits 1,190,983$ 1,285,162$ 94,179$ 108% 2,640,750$ 1,355,588$ 51%E03 Services 413,074$ 290,975$ (122,099)$ 70% 772,700$ 481,725$ 62%E05 Supplies 49,975$ 37,665$ (12,310)$ 75% 116,000$ 78,335$ 68%E07 General Production 40,230$ 29,820$ (10,410)$ 74% 82,000$ 52,180$ 64%E10 Source of Supply 32,105$ 49,851$ 17,746$ 155% 470,000$ 420,149$ 89%E15 Pumping 200,143$ 292,978$ 92,836$ 146% 364,000$ 71,022$ 20%E20 Water Treatment 104,037$ 123,369$ 19,332$ 119% 430,000$ 306,631$ 71%E30 Conservation 708$ 1,053$ 345$ 149% 2,000$ 947$ 47%E25 Transmission & Distribution 64,667$ 90,702$ 26,035$ 140% 148,000$ 57,298$ 39%E35 Customer Accounts 38,439$ 40,893$ 2,455$ 106% 74,770$ 33,877$ 45%E70 Other 67,110$ 88,214$ 21,104$ 131% 16,100$ (72,114)$ -448%E80 Interest Expense 86,363$ 51,815$ (34,548)$ 60% 103,538$ 51,723$ 50%

District Expense Total 2,287,833$ 2,382,497$ 94,664$ 104% 5,219,858$ 2,837,361$ 54%

6.3 - 7

30-Nov-17 31-Dec-17

$1,860,966 $1,434,369Investment $513,525 $511,965

$0 $3,449$643,521 $976,538

$1,844 $959$293,413 $293,413$160,045 $160,045$320,369 $320,369$641,797 $641,797$469,499 $502,311

$39,448 $71,975$33,149,852 $33,149,852

($18,836,563) ($18,836,563)$39,185 $38,181

$411,139 $411,139$19,708,040 $19,679,798

$21,374 $23,702$56,609 $63,995$15,707 $0$33,000 $29,000

$298,395 $298,395$57,094 $53,555

$5,852,001 $5,852,001$191,369 $191,369

$6,525,548 $6,512,017

$8,473,814 $8,473,814$714,160 $714,160

$3,455,527 $3,455,527$12,643,501 $12,643,501

$19,169,050 $19,155,518

$538,990 $524,280

$13,182,492 $13,167,781

$19,708,040 $19,679,798

Balance Sheet - Fund 01

Total Liabilities and Fund Balance:

Total Retained Earnings:

AssetsCash

Accrued Interest

Interfund Loan Receivable

Prepaid Expense

Liabilities

Unearned Revenue

Plant & Equipment

Construction-in-progress

A/R Customer-WaterA/R - Other

Inventory

Land & Right-of-ways

Depreciation/AmortizationLoss on Defeasance of DebtUnfunded Pension Liab

Restricted - Debt ServiceUnrestricted Net Position

Fund Balance

LT Liabilities Due in 1 Yr

A/P & Accrued Expenses

Maintenance Projects in progress

Total Liabilities, Fund Balance, and Retained Earnings:

Total Fund Balance and Retained Earnings:

Accrued Salaries & WagesAccrued Interest Payable

Investment in Capital Assets

Customer Deposits

Long-term LiabilitiesDeferred Pension Inflows

6.3 - 8

30-Nov-17 31-Dec-17

$186,080 $187,897$462 $462

$15,867 $8,290$156,784 $150,272

$569 $569$554,070 $554,070

$16,222 $16,222$5,267,833 $5,267,833$2,724,256 $2,724,256

($2,356,610) ($2,356,610)$45,682 $45,682

$6,611,215 $6,598,942

$10,178 $0$26,000 $26,000

$293,413 $293,413$180,635 $180,635

$2,325,703 $2,325,703$21,261 $21,261

$2,857,191 $2,847,013

$3,680,638 $3,680,638$218,169 $218,169

($418,734) ($418,734)$3,480,072 $3,480,072

$6,337,263 $6,327,085

$273,952 $271,857

$3,754,024 $3,751,930

$6,611,215 $6,598,942

Construction-in-progress

Plant & Equipment

A/R Customer-WaterA/R - OtherInventoryNote Receivable

Interfund Loans

Unfunded Pension LiabDepreciation/Amortization

Customer DepositsAccrued Interest PayableLiabilities

Total Liabilities, Fund Balance, and Retained Earnings:

Restricted - Debt Service

Deferred Pension Inflows

Balance Sheet - Fund 02

Total Liabilities and Fund Balance:

Total Retained Earnings:

AssetsCash

Water Rights/Intangible Assets

Unrestricted Net Position

Fund Balance

Accrued Interest

LT Liabilities Due in 1 YrLong-term Liabilities

Investment in Capital Assets

Total Fund Balance and Retained Earnings:

6.3 - 9

Scotts Valley Water DistrictAP Check RegisterDecember 2017

Vendor Name Check Date Check No. Check Amount DescriptionA T & T 12/19/2017 25898 32.94$ AT&T Circuit - Dec 2017ACCELA INC. 12/19/2017 25899 1,942.00$ Web Payment Transaction Fees - Nov 2017ACWA/JPIA 12/19/2017 25900 47,971.91$ EE and Retiree Benefits - Jan 2018AFLAC 12/19/2017 25901 484.16$ EE Self-Funded Supplemental Benefits - Nov 2017AFSCME COUNCIL 57 12/19/2017 25902 564.33$ Union Dues for Dec 2017 AM CONSERVATION GROUP INC 12/7/2017 25883 170.35$ WUE Give Aways - Sink Faucet AeratorsAMERICAN YILUEN DEVELOPMENT & HOLDINGS LLC 12/19/2017 25903 150.00$ SA-109 Dev Project Review Deposit - Refund RemainderBADGER METER 12/19/2017 25904 403.17$ Monthly Cell Charge for PW Meter Reads - Nov 2017BADGER METER 12/19/2017 25904 53.40$ Monthly Cell Charge for RW Meter Reads - Nov 2017BAY TREE LLC 12/19/2017 25905 93.26$ UB Refund CheckBRENNTAG PACIFIC INC 12/7/2017 25884 1,331.67$ Water Treatment ChemicalsBRENNTAG PACIFIC INC 12/19/2017 25906 6,597.44$ Water Treatment ChemicalsCHASE 12/19/2017 25907 31,441.52$ Debt Service JAN 2018 - 2016 JPMorgan Chase Loan (PW)CHASE 12/19/2017 25907 20,373.77$ Debt Service JAN 2018 - 2016 JPMorgan Chase Loan (RW)CITY OF SCOTTS VALLEY 12/19/2017 25908 13,207.32$ Bi-Monthly Treatment DisposalCITY OF SCOTTS VALLEY 12/19/2017 25908 70.32$ Bi-Monthly Sewer Service - 2 Civic CtrCITY OF SCOTTS VALLEY 12/19/2017 25908 70.32$ Bi-Monthly Sewer Service - El PuebloCIVIL CONSULTANTS GROUP INC 12/19/2017 25909 5,024.00$ Bethany Booster Station RepairsCIVIL CONSULTANTS GROUP INC 12/19/2017 25909 480.00$ General Engineering ServicesCIVIL CONSULTANTS GROUP INC 12/19/2017 25909 2,110.00$ Orchard Run Well ImprovementsCONTRACTOR COMPLIANCE & MONITORING 12/19/2017 25910 666.67$ Well 7A - Labor Compliance Monitoring - Nov 2017CORIX WATER PRODUCTS (US) INC 12/19/2017 25911 2,160.84$ Hydrant Maint Supplies - StockCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 1,235.32$ Treatment Plant Supplies - 4" Flanged Plug ValveCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 1,088.11$ Treatment Plant Supplies - Combo Air ValvesCORIX WATER PRODUCTS (US) INC 12/7/2017 25885 869.29$ Main Maint Supplies - StockCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 833.90$ Main Maint Supplies - Couplings & Log KitsCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 693.68$ Main Maint Supplies - Piping & Lug KitsCORIX WATER PRODUCTS (US) INC 12/7/2017 25885 644.20$ Service Lateral Maint Supplies - StockCORIX WATER PRODUCTS (US) INC 12/7/2017 25885 474.96$ Service Lateral Maint Supplies - CouplingsCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 277.96$ Ball ValvesCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 466.55$ Main Maint SuppliesCORIX WATER PRODUCTS (US) INC 12/19/2017 25911 78.48$ Stock - GasketsCOUNTY OF SANTA CRUZ 12/19/2017 25912 91.05$ Landfill Waste - Nov 2017DASSELS PETROLEUM 12/19/2017 25913 397.97$ Vehicle Fuel Purchases - Nov 2017DUNCAN AUTO TECH 12/7/2017 25886 1,087.83$ Vehicle Maint - Brake Pads/Trans Flush - Truck 1

6.3 - 10


Vendor Name Check Date Check No. Check Amount DescriptionDUNCAN AUTO TECH 12/7/2017 25886 107.87$ Vehicle Maint - Oil Change/Brake Check - Truck 5EUROFINS EATON ANALYTICAL 12/19/2017 25914 2,720.00$ Lab Testing for Water QualityEXCEEDIO 12/7/2017 25887 5,393.00$ Monthly Managed Services: HaaS/SaaS/ITaaSEXCEEDIO 12/7/2017 25887 1,004.00$ Monthly Managed Services: SCADAFASTENAL COMPANY 12/19/2017 25915 676.72$ Special Division Supplies - OpsFASTENAL COMPANY 12/19/2017 25915 37.56$ Small Tools - Saw BladesGOLDEN STATE FLOW MEASUREMENT INC. 12/19/2017 25916 1,087.73$ Meter Maint Supplies - Touch ReadersGRANITE CONSTRUCTION CO 12/7/2017 25888 488.22$ Tank Road Maint Supplies - AggregatebaseGRANITE CONSTRUCTION CO 12/19/2017 25917 134.17$ Construction Aggregate - El Pueblo WTPGRANITE ROCK COMPANY 12/19/2017 25918 108.75$ Main Maint - Utility Trench SandGREEN WASTE RECOVERY INC 12/19/2017 25919 237.08$ Monthly Trash Service - El Pueblo - Nov 2017HAIGHT ROBERT 12/19/2017 25920 718.90$ Retiree Medical - Jan 2018HARMON PIRET 12/19/2017 25921 203.82$ Travel Reimbursement - ACWA Fall Conference - HarmonHEALTHEQUITY INC 12/19/2017 25922 44.25$ HSA Admin Fees - Dec 2017HODGIN DAVID 12/19/2017 25923 395.23$ Director Medical - Jan 2018IDEXX LABORATORIES INC 12/19/2017 25924 162.33$ Sample Bottles for BacT TestingINDEPENDENT ELECTRIC SUPPLY 12/19/2017 25925 622.61$ Bethany Booster Pump Station - Electrical SuppliesINDEPENDENT ELECTRIC SUPPLY 12/7/2017 25889 189.90$ Drill Wire Lugs - Orchard Run Temp WellINDEPENDENT ELECTRIC SUPPLY 12/7/2017 25889 120.34$ Bethany Pump Station - Electrical SuppliesINFOSEND 12/19/2017 25926 338.03$ UB Past Due Printing & Mailing - Nov 2017JACKSON ALEXIS 12/19/2017 25927 3.09$ UB Refund CheckJACKSON LANDSCAPE 12/7/2017 25890 357.50$ Landscape Maint - 2 Civic Ctr - Nov 2017KAMIAN GEORGE 12/19/2017 25928 50.00$ Customer Rebate - Pressure RegulatorKASSIS WILLIAM 12/19/2017 25929 535.74$ Retiree Medical - Jan 2018KBA DOCUSYS INC 12/7/2017 25892 157.58$ Copier Maint. & Printing Costs - Nov 2017KBA DOCUSYS INC 12/7/2017 25891 394.18$ Copier Lease - Nov 2017LAS ANIMAS CONCRETE 12/19/2017 25930 895.24$ Hydrant Maint Supplies - ConcreteLAW OFFICE OF ROBERT E BOSSO 12/19/2017 25931 3,000.00$ Legal Counsel Services - Nov 2017LEISHMAN WADE 12/19/2017 25932 333.47$ Director Medical - Jan 2018LEISHMAN WADE 12/19/2017 25932 236.18$ Travel Reimbursement - ACWA Fall Conf - LeishmanLEWIS GREGORY 12/19/2017 25933 210.00$ SA-20 Plan ReviewLEWIS GREGORY 12/19/2017 25933 183.75$ SA-46 Plan ReviewLEWIS GREGORY 12/19/2017 25933 183.75$ SA-133 Plan ReviewMCDERMOTT JAMES 12/19/2017 25934 280.87$ SA-106 Dev Project Review Deposit - Refund RemainderMILLER MAXFIELD INC 12/19/2017 25935 5,262.50$ Execution of Annual Communication Plan - Oct/Nov 2017

6.3 - 11


Vendor Name Check Date Check No. Check Amount DescriptionMILLER MAXFIELD INC 12/19/2017 25935 237.50$ SMGWA - Press Release to Promote 12/13 MeetingMISSION UNIFORM SERVICE 12/19/2017 25936 393.52$ Uniform Laundering & Rental Services - Nov 2017MONTEREY BAY AIR RESOURCES DISTRICT 12/19/2017 25937 3,277.00$ Regulatory Compliance - Monterey Bay Air Resources DistrictNATIONAL METER & AUTOMATION INC. 12/7/2017 25893 1,875.00$ Beacon Engagement Fee - AMI MetersNATIONWIDE RETIREMENT SOLUTIONS 12/19/2017 25938 2,328.09$ IRS 457 Plan - Payroll Date 12/8/2017NORTH BAY FORD 12/19/2017 25939 624.99$ Vehicle Maint - Truck 11NORTON PATRICIA 12/19/2017 25940 435.36$ Retiree Medical - Jan 2018NORTON PATRICIA 12/19/2017 25940 33.72$ Retiree Dental - Jan 2018NORTON PATRICIA 12/19/2017 25940 18.56$ Retiree Vision - Jan 2018OLIVE SPRINGS QUARRY 12/19/2017 25941 85.15$ Construction Supplies - AsphaltPACIFIC GAS & ELECTRIC 12/19/2017 25942 29,929.50$ Electricity - PW - Nov 2017PACIFIC GAS & ELECTRIC 12/19/2017 25942 1,041.18$ Electricity - 2 Civic Ctr - Nov 2017PACIFIC GAS & ELECTRIC 12/19/2017 25942 71.42$ Electricity - RW - Nov 2017PACIFIC GAS & ELECTRIC 12/7/2017 25894 56.88$ Electricity - Skypark - Nov 2017PACIFIC GAS & ELECTRIC 12/7/2017 25894 15.18$ Electricity - Santas Village Rd - Nov 2017PALACE ART & OFFICE SUPPLY 12/19/2017 25943 507.35$ Office Supplies - Ink Cartidges & General SuppliesPALACE ART & OFFICE SUPPLY 12/7/2017 25895 275.21$ Well 7A - Inspector work space setupPALACE ART & OFFICE SUPPLY 12/7/2017 25895 38.14$ Office Supplies - PaperPALACE ART & OFFICE SUPPLY 12/19/2017 25943 94.33$ Office SuppliesPALACE ART & OFFICE SUPPLY 12/7/2017 25895 (68.05)$ Return Credit - Recorder & KeyboardPERRI CHRISTOPHER 12/19/2017 25944 1,544.79$ Director Medical - Jan 2018PLATT ELECTRIC SUPPLY 12/19/2017 25945 3,394.24$ Bethany Booster Pump Station Electrical SuppliesPLATT ELECTRIC SUPPLY 12/19/2017 25945 (381.76)$ Credit Memo - Bethany Booster Pump Station Electrical SuppliesPRICE DAVID 12/19/2017 25946 50.00$ Customer Rebate - Pressure RegulatorREBER DANIEL 12/19/2017 25947 2,024.71$ Director Medical - Jan 2018REGIONAL WATER MGMNT FOUNDATION 12/19/2017 25948 10,000.00$ IRWM Coordination & Support ServicesSALINAS PUMP CO 12/19/2017 25949 28,109.25$ Well 7A AbandonmentSANTA CRUZ OCCUPATIONAL MEDICAL CENTER 12/19/2017 25950 308.27$ First Aid - Adams 5/19/2015SCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 561.55$ Treatment Plant Supplies - Insulation, Adhesives, TarpsSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 262.39$ Small Tools - Pliers Flashlights Shovels Rake BroomSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 129.94$ Well 7A Staging AreaSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 109.85$ Bethany Booster Pump Station - LightsSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 83.95$ Special Division Supplies - PostsSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 83.16$ Deer Trail Hydrant Repair - Concrete & LumberSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 71.64$ Meter Maint Supplies - Splices & Batteries

6.3 - 12


Vendor Name Check Date Check No. Check Amount DescriptionSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 69.31$ Well 3B Maint Supplies - Hole SawSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 38.14$ Well7A - Guardian/Barrier Orange 4x100'SCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 37.89$ Finance ChargeSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 29.47$ Bethany Booster Pump Station - Misc SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 27.79$ Special Division Supplies - Trash BagsSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 24.73$ Service Lateral Maint SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 16.62$ Bethany Booster Pump Station - Electrical SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 15.57$ Office Supplies - Cleaner & Trash BagsSCARBOROUGH LUMBER & BUILDING SUPPLY 12/19/2017 25951 4.89$ Vehicle Maint Supplies - Rivets - Truck 1SCOTTS VALLEY FIRE DISTRICT 12/19/2017 25952 50,923.00$ Capacity Buyback - Downsizing 1 1/2" to 1" PW MeterSECO CONTROLS 12/19/2017 25953 599.08$ Regeant Testing KitsSHRED IT 12/19/2017 25954 91.96$ Document Destruction - Nov 2017SMITH GEORGE 12/19/2017 25955 2,000.00$ Refund Deposit - PW Bulk MeterSOQUEL CREEK WATER DIST 12/19/2017 25956 16.39$ Water Conservation CampaignSTEVENSON'S LANDSCAPING 12/19/2017 25957 855.00$ Landscaping at Misc Locations - Nov 2017STILES RUTH 12/19/2017 25958 427.05$ Director Medical - Jan 2018STONE FAYE 12/19/2017 25959 100.00$ Customer Rebate - ToiletSWRCB 12/19/2017 25960 500.00$ Annual Fees - NPDES for Water PurveyorsSWRCB-DWOCP 12/19/2017 25961 60.00$ Training - D2 Certification - BeattonSYCAL ENGINEERING INC 12/19/2017 25962 2,452.50$ Engineering Services for SCADA - Oct/Nov 2017THE COVELLO GROUP 12/19/2017 25963 1,430.00$ SA-97 Plan ReviewTHE PATHFINDER COMPANIES 12/19/2017 25964 408.59$ Travel Reimbursement - ACWA Board Meeting - HodginTIMES PUBLISHING GROUP INC 12/19/2017 25965 175.00$ SV Times Ad - Dec 2017TPx COMMUNICATIONS 12/19/2017 25966 1,004.95$ Phone Service - Dec 2017TPx COMMUNICATIONS 12/19/2017 25966 334.98$ Phone Service - Ops - Dec 2017UNITED SITE SERVICES 12/7/2017 25896 173.16$ Portable Toilet Rental - 229 Mt Hermon - Nov 2017UNITED SITE SERVICES 12/7/2017 25896 157.77$ Portable Toilet Rental - Orchard Run WTP - Nov 2017UNITED SITE SERVICES 12/7/2017 25896 136.30$ Portable Toilet Rental - RW Fill Station - Dec 2017UNIVERSAL BUILDING SERVICES 12/19/2017 25967 396.98$ Janitorial Service - 2 Civic Ctr - Nov 2017UNIVERSAL BUILDING SERVICES 12/19/2017 25967 322.22$ Janitorial Service - El Pueblo - Nov 2017USA BLUEBOOK 12/19/2017 25968 4,009.09$ Treatment Plant Supplies - Colorimeter, Regeants, ChemicalsUSA BLUEBOOK 12/19/2017 25968 685.17$ Treatment Plant Supplies - Pressure Data LoggerUSA BLUEBOOK 12/19/2017 25968 149.36$ Regeant Testing KitsVALERO MARKETING & SUPPLY CO 12/19/2017 25969 430.40$ Vehicle Fuel - Nov 2017VAN DER STEEN ENGINEERING 12/19/2017 25970 11,800.00$ Bethany Pump Station - Stabilizing the Building Footing

6.3 - 13


Vendor Name Check Date Check No. Check Amount DescriptionVAN DER STEEN ENGINEERING 12/19/2017 25970 10,580.00$ Bethany Pump Station - Installing New Concrete SlabVIERHUS MIKE 12/19/2017 25971 182.83$ SA-107 Dev Project Review Deposit - Refund RemainderWEBSOFT DEVELOPERS INC 12/19/2017 25972 15,000.00$ Annual Subscription - MobileMMS - FY2018WEST MARINE PRO 12/19/2017 25973 56.38$ Safety GlovesWHEELOCK ASHLEY 12/19/2017 25974 400.17$ SA-122 Dev Project Review Deposit - Refund RemainderWINCHESTER AUTO 12/7/2017 25897 134.43$ Meter Maint Supplies - Wire Starter CablesWINCHESTER AUTO 12/7/2017 25897 18.51$ Vehicle Maint - New Wiper BladesWOODWARD DRILLING 12/19/2017 25975 2,000.00$ Refund Deposit - PW Bulk Meter

366,410.74$

Legend: Abbreviation: Meaning:PW Potable WaterRW Recycled WaterWTP Water Treatment PlantEE EmployeeER EmployerCO Change OrderTO Task OrderSA Service ApplicationFY Fiscal YearOps OperationsEng EngineeringAdm AdministrationFin FinanceWUE Water Use EfficiencyENR Engineering News RecordACWA Association of California Water AgenciesLID Low Impact DevelopmentUB Utility Billing

6.3 - 14

Scotts Valley Water DistrictInvestment SummaryAs of 12/31/2017

Market Value

Institution Investment CUSIP Purchased Maturity Purchase $ 9/30/2017 12/31/2017 9/30/2017 12/31/2017 12/31/2017

Unrestricted Funds:

LAIF Local Agency Investment Fund various 0.929% 1.239% 638,313$ 640,041$ 640,041$

WFB Checking General various 0.01% 0.00% 7,689$ 7,360$ 7,360$

WFB Checking Payroll various 0.01% 0.01% 7,468$ 7,867$ 7,867$

WFB Checking Revenue various 0.40% 0.40% 1,579,326$ 967,272$ 967,272$

WFB* CD Wells Fargo Bank 9497484K0 3/29/16 4/6/18 100,000$ 1.10% 1.10% 100,000$ 100,000$ 99,929$

WFB CD Comenity Cap Bank 20033APT7 3/29/16 4/4/19 100,000$ 1.30% 1.30% 100,000$ 100,000$ 99,526$

WFB CD GE Capital Retail Bank 36157PXS3 3/21/14 3/21/18 100,000$ 1.50% 1.50% 100,000$ 100,000$ 100,030$WFB CD Goldman Sachs Bank USA 38147JWH1 3/26/14 3/26/19 112,000$ 1.95% 1.95% 112,000$ 112,000$ 112,201$

WFB CD Goldman Sachs Bank USA 38148PJB4 3/24/17 3/20/22 100,000$ 2.40% 2.40% 100,000$ 100,000$ 100,278$

Subtotal for Unrestricted Funds: 512,000$ 2,744,796$ 2,134,540$ 2,134,505$

Weighted Average Yield 0.95%

Balance as of:Rate

6.3 - 15

STAFF REPORT – OPERATIONS Scotts Valley Water District Date: February 8, 2018


From: Operations Manager Active Development Projects Polo Ranch: Lennar has scheduled a pre-construction meeting for February 8th. Discussions will include some design changes for the Districts flow control station and a phased construction schedule for the new bridge over Carbonera Creek. Lexington Hotel: (soon to be “Four Points by Sheraton Scotts Valley”) The new ownership group has construction activities at the site moving again and is planning for an optimistic soft opening on June 1st. Recent design changes to the bus stop location and sidewalk along Scotts Valley Dr. required the developer to move the potable service tap approximately 40’ north from the original location. On January 26th the developer paid the hotel connection/capacity fees in the amount of $283,317. Operations Activities Orchard Well: Pacific Coast Well Drilling completed construction of the physical well and have mechanically cleaned it. Pump testing began January 29th and will conclude with 2 extended period pump tests on February 8th. Information gathered from the pump testing determines the production rate (GPM), size of pump and motor, and the depth where the pump is set. Next up will be the installation of well pump and column, well head and piping construction, electrical and control installs, retaining wall replacement, site work, driveway paving, concluding with a DDW well inspection and permit amendment so we can operate the well. Bethany Booster Station: We had a pre-construction meeting with staff from the 1440 Foundation, Baymonte Preschool, and Thayer Construction to review the Bethany main installation project schedule. Sub-contractor Monterey Peninsula Engineering (MPE) will begin main installation work in Bethany Drive February 5th. Clear weather is expected over the next couple of weeks so the pipe project is scheduled to be installed and connected to the rehabbed Bethany booster station and in service by February 15th. Distribution Main Flushing: March is typically the month we run our annual main & hydrant flushing program. In light of the recent drought, we’ve not performed a full system-wide flush

6.4 - 1

since 2015. In 2015 it took over 2,000,000 gallons to flush the entire system. Over the last two years, crews flushed only dead-end mains which is the minimal requirement. It takes about 500,000 gallons to complete dead-end main flushing. Given the fact that in March we’ll still have operational limitations with our wells and this seasons rainfall has been minimal we are planning to flush only dead-end mains again this year. Well 10 Treatment Plant: Annual plant maintenance activities get underway February 5th. The air scrubbing tower & media will be inspected and cleaned. Last year the pressure filters performance started to drop off requiring staff to perform more frequent filter backwashes and an inspection revealed the development of small mudballs. These are the signs of spent media. This filter has required media replacement every 5 years and it was last changed out in 2013. Consequently, we will replace the sand and anthracite media in the pressure filter as part of this year’s annual maintenance program.

Attachments: 1) Monthly Well Production

2) System Demand

3) Monthly Rainfall Recorded at SVWD El Pueblo Yard

6.4 - 2

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Gallons Produced (total) Gallons Produced (total)November 2017 25,984,108 December 2017 25,935,551December 2017 25,935,551 January 2018 23,610,001

Change November 2017 to December 2017 = 0.2% less Change December 2017 to January 2018 = 8.97% less

Well production is water pumped minus water used for well maintenance activities

Monthly Well ProductionDecember 2017 and January 2018

Well 11A1,802,000 7%

Well 11B11,200,422

43%

Well 3B12,933,129

50%

DECEMBER 17Well 11A

547,700 2%

Well 11B11,002,523

47%

Well 3B12,059,778

51%

JANUARY 18

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Potable Demand Recycled Demand Rain

6.4 - 5

Potable and Recycled Demand2007 2017

Potable Monthly Demand (Production plus/minus Change in Storage)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average

Jan. 30,456,090 31,258,350 27,190,550 23,129,510 31,165,560 27,764,580 33,252,872 24,822,615 23,085,736 24,789,618 23,674,051 27,326,321Feb. 31,328,710 25,802,050 24,924,790 25,004,280 26,813,840 26,124,132 24,779,862 23,217,640 21,968,896 23,490,314 25,345,451March 40,970,670 28,912,350 28,930,820 26,079,310 29,752,014 31,559,240 27,946,154 30,953,420 23,910,892 25,837,232 29,485,210April 48,210,720 37,400,190 27,503,270 30,993,238 29,234,622 35,621,370 28,875,831 29,909,260 28,400,861 25,447,561 32,159,692May 55,947,190 45,932,830 37,704,720 40,456,736 43,581,989 49,525,756 38,675,936 30,478,823 31,995,591 38,043,826 41,234,340June 59,000,280 49,307,120 47,344,250 38,237,371 46,553,850 47,432,970 39,525,236 32,726,825 36,842,416 42,310,983 43,928,130July 60,330,850 54,828,370 49,625,170 46,417,190 48,634,940 49,192,762 41,957,386 34,544,613 38,892,200 41,757,891 46,618,137Aug. 61,230,620 53,944,010 49,668,620 45,665,550 48,939,190 50,820,800 41,020,790 35,765,167 38,541,952 40,076,059 46,567,276Sept. 55,082,280 41,458,120 46,781,040 43,700,350 42,936,210 45,489,360 36,533,116 33,498,030 35,653,167 38,190,535 41,932,221Oct. 48,700,710 39,213,770 37,889,760 34,771,130 37,982,466 42,248,672 34,840,142 32,589,534 30,517,556 36,888,905 37,564,265Nov. 34,615,970 34,099,250 18,604,914 28,853,908 28,714,236 34,868,300 25,524,197 24,110,286 24,338,656 24,864,436 27,859,415Dec. 30,675,620 28,903,970 15,762,610 30,451,180 26,428,050 32,013,140 24,261,522 23,866,862 24,379,124 26,194,926 26,293,700Total 556,549,710 471,060,380 411,930,514 413,759,753 440,736,967 472,661,082 397,193,044 356,483,075 358,527,047 387,892,285 23,674,051 450,161,099

Recycled Monthly Demand (Production plus/minus Change in Storage)2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Average

Jan. 93,000 496,000 62,000 496,000 2,139,000 620,000 3,019,613 635,420 862,984 156,267 838,172 856,223Feb. 28,000 448,000 0 1,120,000 2,352,000 2,268,000 1,248,862 1,545,957 1,813,868 94,521 1,091,921March 1,860,000 1,178,000 620,000 620,000 1,054,000 2,723,665 1,579,882 4,231,231 972,360 544,666 1,538,380April 4,020,000 4,050,000 570,000 3,450,000 1,470,000 5,436,705 4,163,175 4,720,887 4,381,911 713,802 3,297,648May 7,378,000 6,293,000 5,301,000 6,448,000 7,843,000 9,248,455 8,409,175 6,686,359 6,909,436 7,908,386 7,242,481June 8,340,000 8,700,000 8,250,000 6,150,000 9,420,000 9,801,903 9,135,056 7,488,534 9,639,221 8,940,094 8,586,481July 8,990,000 9,486,000 10,013,000 4,936,000 9,610,000 9,394,766 9,911,697 9,935,422 10,841,389 10,981,309 9,409,958Aug. 7,719,000 9,269,000 8,680,000 9,207,000 10,199,000 9,875,446 8,542,111 10,471,389 8,767,020 9,618,897 9,234,886Sept. 6,690,000 7,200,000 8,070,000 8,610,000 7,680,000 8,288,391 6,176,224 9,092,727 8,287,511 7,957,562 7,805,242Oct. 4,929,000 2,852,000 4,681,000 4,185,000 4,960,000 6,537,840 5,282,253 7,233,408 3,956,097 7,557,695 5,217,429Nov. 1,290,000 330,000 570,000 1,740,000 1,920,000 4,029,769 1,131,988 2,817,778 1,053,779 2,234,592 1,711,791Dec. 651,000 1,333,000 403,000 2,201,000 341,000 2,453,395 236,228 1,119,017 529,158 1,670,966 1,093,776Total 51,988,000 51,635,000 47,220,000 49,163,000 58,988,000 70,678,335 58,836,264 65,978,129 58,014,734 58,378,757 838,172 51,974,399

Water System Demand is the Total Production +/ the Change in Storage

6.4 - 6

Monthly Rainfall Recorded at SVWD El Pueblo Yard

WATER YEAR Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep TOTAL % of Ave1981-82 0.14 11.20 5.90 28.80 6.88 8.26 8.40 0.03 0.00 0.00 0.04 1.28 70.93 171%

High Year 1982-83 5.35 10.50 7.74 13.90 18.00 19.90 7.80 0.98 0.00 0.00 0.17 1.91 86.25 208%1983-84 1.70 12.70 12.90 0.54 2.49 2.62 1.13 0.02 0.18 0.01 0.00 0.25 34.54 83%1984-85 2.80 13.80 2.95 1.72 4.20 7.92 0.73 0.11 0.15 0.09 0.02 0.54 35.03 84%1985-86 1.12 7.14 2.62 7.38 22.40 15.00 0.48 0.83 0.00 0.00 0.00 1.30 58.27 140%1986-87 0.03 0.05 2.47 4.51 9.06 6.31 0.70 0.00 0.02 0.00 0.00 0.00 23.15 56%1987-88 1.19 2.30 10.70 4.58 0.68 0.00 3.13 1.07 0.16 0.00 0.00 0.00 23.81 57%1988-89 0.19 5.90 8.89 2.06 1.39 10.60 0.67 0.08 0.03 0.00 0.03 0.83 30.67 74%1989-90 3.53 1.58 0.01 3.42 3.69 2.13 0.16 5.79 0.00 0.00 0.12 0.15 20.58 50%1990-91 0.50 0.24 1.65 0.61 5.39 17.19 0.51 0.06 0.40 0.00 0.02 0.07 26.64 64%1991-92 2.37 1.46 5.42 3.03 15.30 4.65 0.45 0.00 0.82 0.00 0.05 0.00 33.55 81%1992-93 3.41 0.20 11.54 18.51 10.22 3.17 1.37 0.96 0.68 0.00 0.00 0.00 50.06 120%1993-94 0.73 2.74 5.52 3.51 9.72 0.68 2.75 2.10 0.01 0.00 0.00 0.05 27.81 67%1994-95 1.79 8.29 4.78 23.88 0.65 13.62 3.79 0.89 1.04 0.01 0.00 0.00 58.74 141%1995-96 0.00 0.32 10.03 13.52 11.35 5.14 2.38 4.31 0.03 0.00 0.00 0.00 47.08 113%1996-97 2.89 6.95 22.43 12.33 0.17 1.50 0.58 0.16 0.12 0.00 0.54 0.00 47.67 115%1997-98 0.68 10.12 4.06 14.21 21.81 6.17 2.85 3.65 0.01 0.00 0.01 0.17 63.74 153%1998-99 1.02 9.11 1.85 9.25 11.08 5.22 2.58 0.03 0.36 0.00 0.02 0.14 40.66 98%1999-00 0.35 5.69 0.53 18.02 17.57 2.77 2.69 1.01 0.18 0.00 0.20 0.40 49.41 119%2000-01 5.14 1.38 0.94 8.68 10.65 4.05 2.67 0.00 0.07 0.00 0.00 0.16 33.74 81%2001-02 1.13 9.93 16.45 4.97 2.69 4.66 0.52 0.90 0.00 0.00 0.05 0.00 41.30 99%2002-03 0.00 5.80 21.40 2.77 2.95 2.54 5.75 1.09 0.16 0.00 0.00 0.00 42.46 102%2003-04 0.19 3.93 17.55 4.44 9.69 1.19 0.65 0.07 0.00 0.06 0.00 0.11 37.88 91%2004-05 7.24 3.25 14.39 8.30 7.20 10.01 3.79 2.13 0.94 0.02 0.00 0.08 57.35 138%2005-06 0.19 2.84 21.73 6.55 5.26 15.29 10.44 1.01 0.01 0.00 0.01 0.00 63.33 152%2006-07 0.25 3.30 5.67 0.89 9.24 0.30 2.17 0.46 0.00 0.10 0.01 0.33 22.72 55%2007-08 1.93 0.52 5.50 17.59 6.96 0.36 0.35 0.00 0.00 0.01 0.00 0.04 33.26 80%2008-09 1.59 4.80 4.38 1.80 15.28 3.47 0.52 1.42 0.01 0.00 0.00 0.26 33.53 81%2009-10 9.70 0.33 5.21 11.37 8.66 4.35 5.41 1.17 0.00 0.01 0.07 0.00 46.28 111%2010-11 3.92 5.13 15.36 1.97 10.59 13.40 0.75 3.42 3.40 0.00 0.04 0.02 58.00 140%2011-12 2.93 3.41 0.15 6.80 2.75 11.97 4.09 0.02 0.20 0.02 0.00 0.02 32.36 78%2012-13 1.61 11.32 13.25 1.31 0.47 2.66 0.43 0.01 0.11 0.00 0.00 0.70 31.87 77%

Low Year 2013-14 0.01 0.87 0.78 0.05 11.52 4.02 2.02 0.01 0.02 0.09 0.01 0.92 20.32 49%2014-15 0.44 4.36 16.52 0.00 4.69 0.47 2.13 0.19 0.04 0.00 0.03 0.02 28.89 70%2015-16 0.07 2.54 6.67 16.20 1.16 14.26 1.18 0.35 0.00 0.00 0.00 0.22 42.65 103%2016-17 8.66 3.29 10.77 26.13 19.56 7.09 4.47 0.06 0.07 0.00 0.00 0.04 80.14 193%2017-18 0.1 4.02 0.08 6.43 10.63 26%

Cumulative 2017-2018 0.10 4.02 0.08 6.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.63Monthly Average 1981-2016 1.89 4.97 8.23 7.93 8.05 6.45 2.46 0.98 0.26 0.01 0.04 0.28 41.56Cumulative Ave 1981-2016 1.89 6.86 15.09 23.02 31.07 37.52 39.98 40.96 41.22 41.23 41.27 41.56

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Santa Cruz County Water Resources Management Status Report for 2017

Santa Cruz County continues to address major water resource challenges. Most of the County’s groundwater basins have historically been pumped in excess of sustainable yield and the major water supply agencies do not have sufficient supplies to meet current and future demand. Historic coho salmon and steelhead populations have been greatly diminished by reductions in streamflow, increased erosion and sedimentation, barriers to migration, and removal of large woody material from streams. Water quality has been degraded by urban runoff, leaky sewer systems, and failed septic systems. The natural benefits of wetlands, floodplains, riparian corridors, and groundwater recharge areas have been significantly diminished by land development and agricultural use. The effects of climate change are expected to increase the challenges by increasing rainfall intensity and flooding, reducing groundwater recharge, and increasing irrigation water demand.

The four year drought of 2012-15 greatly diminished streamflow and available water supplies, but water agencies and their customers were able to substantially reduce demand in order to accommodate the shortfall. In 2016 normal rainfall occurred, but groundwater basins and summer streamflow continued to be depressed. 2017 had substantially above normal rainfall amounts, leading to recovery of watersheds and stream flows. Major groundwater basins showed significant recovery, but still show long term depletion. The high rains and runoff of 2016/17 also resulted in significant flooding, storm damage, landsliding, erosion and sediment transport.

The County and its partner agencies continue to conduct a range of efforts for water resource management to address the above challenges. Following is a summary of 2017 water resource management organized under six topic areas:

1. Groundwater Management 2. Water Supply and Conservation 3. Stormwater, Recharge, Flood Management, and Climate Change 4. Watershed Health and Aquatic Habitat 5. Water Quality 6. Small Water Systems

1. Groundwater Management

a) The Sustainable Groundwater Management Act of 2014 (SGMA) went into effect on January 1, 2015. The County is actively working with local water agencies to pursue sustainability for the three major groundwater basins in the County as follows:

i) Management of the Santa Cruz Mid-County Basin (formerly referred to as Soquel-Aptos) is overseen by a Joint Powers Agency (JPA) consisting of the County of Santa Cruz, City of Santa Cruz, Soquel Creek Water District and Central Water District. This JPA is referred to as the Santa Cruz Mid-County Groundwater Agency (MGA), which has been recognized by the State Department of Water Resources (DWR) as the Groundwater Sustainability Agency (GSA) for the basin. The MGA governing board includes three private well representatives and two representatives from each partner agency. In 2017, the MGA formed a 13-member Groundwater Sustainability Plan (GSP) Advisory Committee comprising representatives from various interest groups in the Basin. The Committee is tasked with analyzing groundwater sustainability questions

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and making policy recommendations to the MGA Board. More information is available at www.midcountygroundwater.org. Staff to the MGA recently submitted a $1.5 million grant request to DWR for Plan development.

ii) Management of the Santa Margarita Basin is overseen by a Joint Powers Agency (JPA)consisting of the County, the Scotts Valley Water District, and the San Lorenzo Valley Water District. This JPA is referred to as the Santa Margarita Groundwater Agency (SMGWA), which has been recognized by DWR as the GSA for the basin. The SMGWA governing board includes two private well representatives, two representatives from each partner agency, and one representative each from the City of Scotts Valley, the City of Santa Cruz, and the Mount Hermon Association. More information is available at www.smgwa.org. Staff to the SMGWA recently submitted a $1 million grant request to DWR for Plan development.

iii) The Pajaro Valley Water Management Agency (PV Water) is the designated Groundwater Sustainability Agency for the Pajaro Valley Basin within the current Agency boundaries. They have submitted their 2014 Basin Management Plan Update to DWR as an alternative Groundwater Sustainability Plan, and are waiting to hear if it will be accepted. More information is available at www.pvwma.dst.ca.us.

b) In May 2017, the Santa Cruz Mid-County Groundwater Agency organized a project to map seawater intrusion in the groundwater aquifers immediately offshore of the Mid-County area. In partnership with international companies, the MGA collected and recorded geophysical measurements with a low-flying helicopter, using technology originally developed and used in Denmark. The helicopter-borne geophysical system collected measurements needed to identify where the freshwater/saltwater interface occurs,essential information for understanding the immediate risk to coastal wells from seawater intrusion. The results of this work are expected to be available in early 2018.

c) The County continues to work with a $250,000 grant from DWR to assist with outreach and Groundwater Sustainability Plan Development for the Mid-County Groundwater Basin. Funds will be used for further development of the groundwater model for the basin, update of the database on non-municipal wells and water users, outreach and services targeted to private well owners, and maintenance of the website.

d) The County continues to coordinate submission of groundwater level data to the State’s ‘CASGEM’ groundwater monitoring program. County staff also implement a cooperative program to monitor private well levels in the inland Mid-County area.

e) County staff joined other water managers from the Santa Cruz area and other parts of the state as guests of the Kingdom of Denmark to learn about the successful approaches that Denmark has taken over the last 20 years for sustainable groundwater management.

2. Water Supply and Conservation

a) 2016-2017 brought the highest rainfall the region has seen in two decades. Water use remained significantly below the pre-drought levels probably due to the reduced irrigation demand as well as permanent water conservation measures such as plumbing fixture retrofits and drought tolerant landscaping that many residents implemented during the drought. All of the large public water systems continued to promote conservation.

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b) County water use has steadily declined since 2000 even as the population has grown. This is due improved water conservation technology and practices (Figure 1). Figure 2 shows precipitation and water use from 1984-2017. Figure 3 shows the significant decline of inland groundwater levels during the drought and subsequent recovery, while Figure 4 shows that coastal groundwater levels actually came up during the drought as a result of the very substantial conservation efforts and reduced pumping by Soquel Creek Water District. Preliminary results indicate that in 2017 groundwater levels in the Pajaro Valley recovered several feet to levels observed in 2011 before the drought, but a significant part of the basin still had groundwater levels below sea level.

c) County staff have participated with all of the countywide water agencies in the Water Conservation Coalition of Santa Cruz County to increase outreach and education to the public. The Coalition participated in numerous tabling events including Earth Day and the County Fair, and maintained the website: www.watersavingtips.org.

d) Soquel Creek Water District has emphasized that due to their dependence on groundwater, one wet year will not solve their water deficit problems. The District has maintained the Water Demand Offset (WDO) program since 2003 which allows new development to proceed without increasing demand on the groundwater basin. The WDO Program requires developers to fund a reduction in existing water use and/or increase in supply amounting to 200% of their projected new water use, thus having a net positive effect on the groundwater basin. Proposed projects can satisfy their offset requirements by paying a WDO fee equivalent to $55,000 per acre-foot to be used. This fee is broken out: 50% of offset fee goes towards long-term water conservation projects (e.g. stormwater

recharge, smart metering) 50% of offset fee goes to funding the enhanced toilet rebate program (e.g. purchasing

“toilet rebate” credits to go towards development project) Developers also have the option of directly installing ultra-high efficiency toilets or

proposing an alternate offset effort to the District Board. There is currently a “wait list” for purchasing toilet rebate credits and some developers have indicated that these requirements create uncertainty, delay, and added costs and some potential projects have not been pursued as a result. However, it is recognized that the WDO program is a bridge (in-lieu of a moratorium) to allow development to occur while pursuing a supplemental supply. The District is exploring the use of stormwater recharge projects and other options to address these concerns. The District is also pursuing the development of a new supplemental supply, which may eventually eliminate the need for the WDO program.

e) The City of Santa Cruz Water Department and Soquel Creek Water District are continuing to work towards an initial effort to reduce groundwater pumping from the Mid-County Basin by providing excess winter surface water supply from the City to the District. The agencies are currently investigating the possible impacts that introducing surface water into the District distribution system could have on the pipes. This agreement does not include provisions for returning water from Soquel to the City in the event of a drought. However, the City Council’s approved water supply augmentation strategy provides direction for the two agencies to begin discussions about longer term water exchanges and transfers.

f) The City of Santa Cruz Water Department is investigating the possibility of developing an Aquifer Storage and Recovery (ASR) program which would inject treated surface water into the Santa Margarita basin, and/or the Mid-County basin to increase storage. The intent

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would be to withdraw the water during drought years with decreased surface water use. ASR is estimated to take 6-12 years before implementation, though there is a “go, no-go” decision point after the next phase of feasibility testing.

g) Soquel Creek Water District is pursuing its “PureWater Soquel” project to recharge purified recycled water into the Mid-County Basin to address the overdraft. This project would yield 1500 acre-feet per year (af/yr). The timeline to release the Environmental Impact Report for the project is late spring, 2018.

h) The City of Santa Cruz Water Dept. and Scotts Valley Water District both completed feasibility studies for various options to utilize recycled water to further augment water supplies. Scotts Valley will continue to utilize recycled water for landscape irrigation and Santa Cruz will pursue several irrigation projects. Purification for indirect potable reuse was not considered to be cost-effective for those entities at this time.

i) The County received a grant from the Wildlife Conservation Board Streamflow Enhancement Program to develop a San Lorenzo Watershed Conjunctive Use and Baseflow Enhancement Plan in partnership with the San Lorenzo Valley Water District. The Plan will be used to improve water supply reliability and increased summer stream flows in the immediate future, and recommend further infrastructure improvements needed in the long run. The County and San Lorenzo Valley Water District have implemented stream flow gaging and inflow studies to better understand surface water and groundwater contributions to flow in the San Lorenzo River.

j) The County, City of Santa Cruz, San Lorenzo Valley Water District, and Scotts Valley Water District recently signed a Memorandum of Agreement to work together on exploring conjunctive water use options in the San Lorenzo Water shed and Santa Margarita Groundwater Basin. These efforts will explore many ways to utilize excess surface water when available to increase groundwater storage and water supply reliability and increase dry season stream flow.

k) The County is finalizing the results of a $99,000 grant from the Department ofConservation to develop a voluntary Rotational Cover Crop Plan for the Pajaro Valley, inpartnership with the Resource Conservation District and the Pajaro Valley Community Water Dialogue. Economic analysis and greenhouse gas emissions reduction analysis have been completed and a draft plan is being circulated for review.

l) In July, 2017, PV Water initiated the next steps to implementing its Basin Management Plan by meeting with community members to provide information on the College Lake Project, which will provide 2400 acre-feet per year of new water supply. Following several years of background work, PV Water has applied for water rights and initiated the environmental review process for the project. PV Water is close to completing a grant funded project to provide 1.5 million gallons of additional storage of recycled water at the Watsonville Treatment Plant, which will facilitate full use of recycled water, providing 750 af/yr of additional supply. PV Water is also implementing programs to encourage water conservation, voluntary land fallowing and increased groundwater recharge.

m) The Health Services Agency in partnership with Ecology Action, County Parks, and the City of Santa Cruz, implemented a turf replacement project at the County’s Emeline Campus. Three thousand square feet of turf was torn out and replaced with drought tolerant plants and mulch.

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n) Pasatiempo Golf Club completed a recycled water project that will utilize treated wastewater from Scotts Valley for golf course irrigation and significantly reduce their demand for City of Santa Cruz potable water. This project was entirely funded byPasatiempo.

o) Santa Cruz County partner agencies continue to work together on integrated regional water management (IRWM), with the Regional Water Management Foundation (RWMF) serving as a hub for the 12 partner agencies. The County and all of the cities and public agencies dealing with water are signatories to the Santa Cruz IRWM Memorandum of Agreement, which was updated in 2016. The agencies contribute $80,000 toward maintenance of the IRWM efforts.

p)The state has recently made available IRWM grant funds to further evaluate and address the water needs of disadvantaged communities in the Central Coast region, including the Santa Cruz and Pajaro regions. This project is being administered by the RWMF.

3. Stormwater, Recharge, Flood Management, and Climate Change

a) In order to be eligible for storm water funding through Proposition 1, the State Water Board required the development of Storm Water Resources Plans (SWRP) with the goal of changing the perception of stormwater from a nuisance to a resource. Environmental Health led the effort to write a SWRP for the Santa Cruz region. County staff worked closely with representatives from the four cities, the RCD, Ecology Action, and UCSC. The SWRP can be found online at: http://www.santacruzirwmp.org/resources/swrp. In spring 2017 the County received the letter of approval from the State Board accepting the SWRP.

b) Dr. Andrew Fisher from UCSC has completed work with the Resource Conservation District (RCD) on a Managed Aquifer Recharge (MAR) Suitability Study. MAR is a landscape management strategy that can help reduce aquifer overdraft by facilitating stormwater capture and infiltration into the aquifer. The results from the study include recharge suitability maps, that show area suitability for recharge projects based on a number of different factors.

c) The County of Santa Cruz Environmental Health, County Parks, and Soquel Creek Water District are partnering with the State Water Board to pilot a project to use DualEM geophysical survey equipment to assess potential recharge locations initially identified through the MAR suitability maps. The device measures the electrical resistivity at different depths to provide a detailed evaluation of subsurface conditions. In November 2017, nine locations in and around the Mid-County Basin were surveyed with the DuelEM equipment.The results will allow prioritization of the most promising sites and rule out sites with lower recharge potential without having to conduct more costly testing (i.e. soil borings and percolation tests).

d) The Resource Conservation District, UCSC, and the PV Water have started the Recharge Net Metering program. This is a unique 5-year pilot program that provides a financial incentive to landowners in the form of a rebate issued by PV Water for building a managed aquifer recharge (MAR) system on their property. The program will be tested for five years to assess the benefits to the Pajaro Valley Groundwater Basin and its residents. The

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primary focus of the ReNeM program is on stormwater collection directed to infiltration facilities, using a variety of techniques, to improve groundwater supplies.

e) County Public Works Department (DPW) staff continue to maintain operation of the Automated Local Evaluation in Real Time (ALERT) flood warning system

f) The County, City of Watsonville, and other entities continue to pursue implementation of a project with the Army Corps of Engineers to significantly upgrade the flood conveyance system to provide an adequate level of flood protection for the Pajaro River, Salsipuedes Creek, and Corralitos Creek. The draft General Reevaluation Report and Environmental Assessment were completed by the Corps of Engineers and released in November 2017 for public review and comment.

g) County staff continue to implement the County’s stormwater management program and update the program to address evolving State and Federal requirements. In 2017, County staff completed the stormwater Enforcement Response Plan to provide internal guidance for managing stormwater complaints.

4. Watershed Health and Aquatic Habitat

a) 2017 was a big year for high runoff, landsliding and flooding, with substantial damage to public roads and private property. The San Lorenzo River exceeded flood stage at Felton during five separate storm events with a peak flow of almost 19,000 cubic feet per second on February 7, 2017. This type of flow only occurs on average once about every 15 years. County Planning staff worked to inventory and assess the damage and provide technical assistance for 75 properties. The County also provided a grant to the Resource Conservation District (RCD) to also work directly with property owners to provide outreach and technical assistance on repairing and preventing storm damage. The RCD received and responded to 93 individual requests for technical assistance and advice during and after the 2017 winter. County roads and other infrastructure experienced $130 million worth of damage at 320 different locations. The San Lorenzo River discharged approximately 400,000 tons of sediment to Monterey Bay, as estimated by the US Geological Survey. However, the sediment load in 2017 was less than half the load produced by comparable flows in 1982-83, indicating a significant improvement in watershed conditions.

b) County staff continue to implement various programs to benefit steelhead and coho salmon, which are two anadromous salmonid species that have historically occurred in County watersheds but have experienced a severe drop in numbers as a result of habitat and watershed degradation. Coho are designated as endangered and steelhead are designated as threatened under the federal Endangered Species Act.

c) County staff continued to implement the Large Woody Material Management Program to maintain large wood for habitat value in County streams without increasing flood risks or jeopardizing public safety. There was significantly increased activity in 2017 with the high flows and landslides bringing more wood into the creeks, resulting in 38 requests for evaluation of wood accumulations.

d) County staff continued to work with water agencies to maintain annual sampling of stream habitat and juvenile salmonids in four watersheds: San Lorenzo, Soquel, Aptos and Pajaro.

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In 2017, steelhead numbers increased significantly as a result of good stream flow, after four years of drought.

e) Water Resources has been working with the Planning Department to develop a program to enhance the condition of the riparian corridor in streamside residential areas. The Central Coast Wetlands Group partnered with the County to develop a Riparian Rapid Assessment Method (RipRAM) to document riparian condition. This winter, a pilot project will install native riparian plants within Paradise Park along the San Lorenzo River. The new Felton Library site will include a Riparian Demonstration Garden to showcase native riparian plants.

f) The County’s Fishery Resource Planner partnered with California Department of Fish and Wildlife and the Monterey Bay Salmon and Trout Project to conduct a fish rescue on Corralitos Creek in July 2017. In one day, 660 young steelhead were moved from a section of Corralitos Creek that was drying out to better habitat further upstream.

g) Environmental Health is partnering with the County Information Services Department to complete a database and an interactive website to manage and display the results of fish monitoring efforts that were started by the County in 1981.

h) Staff from the County Planning Department and the HSA Environmental Health Division continued to meet with other regulatory agencies to coordinate effective approaches to environmental code compliance. During 2017 there were significant state and local efforts to develop regulations for cannabis cultivation to minimize the adverse environmental effects of those operations.

i) The Resource Conservation District received a grant to investigate the possibility of offstream storage and other methods for property owners along Soquel Creek to reduce dry season stream diversions. Several new stream gages have been installed along the creek to monitor flows.

j) The City of Santa Cruz and San Lorenzo Valley Water District continued efforts to monitor streamflow and habitat conditions downstream of their diversions in an effort to establish objectives for habitat improvement.

k) The Resource Conservation District continued to work with landowners and agency partners to complete habitat improvement projects through the Integrated Watershed Restoration Program (IWRP). These projects include wetland restoration, fish barrier removal, rural road upgrades, stream habitat improvement, managed aquifer recharge projects, stormwater management and community education.

l) In 2015, 2016, and 2017, the City of Santa Cruz released significantly more flow for fish than in previous years in Laguna Creek, the lower San Lorenzo River, and other streams as a part of an interim agreement with the fishery agencies.

m) The City of Santa Cruz conducted a number of efforts, including ongoing lagoon monitoring, hosting the third annual State of the San Lorenzo River Symposium, and pursuing illegal stream diversions on critical streams.

5. Water Quality

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a) County staff continue to work with the State, City of Capitola, and the County Sanitation District to implement projects and conduct monitoring to assess public health threats, reduce bacterial contamination, and improve beach water quality. Following completion of a sewer line upgrade in Capitola, Capitola Lagoon and Capitola Beach met standards for safe swimming all summer for the first time since monitoring has begun.

b) County staff continued to participate with the City of Santa Cruz, Save the Waves Coalition, Surfrider Foundation, and the Sierra Club in the Cowell Beach Working Group, meeting monthly to better understand and control the elevated bacteria levels at Cowell Beach that have resulted in it being named as one of the most polluted beaches in the State. Previous City improvements have eliminated any significant sources of human contamination. In 2016, the City installed pigeon exclusion fencing under the wharf. Since the completion of the fencing, bacteria counts were far less than in previous years, and the number of days of posting was significantly reduced.

c) County staff continue to work with the City of Watsonville to monitor harmful algae blooms in Pinto Lake. The Resource Conservation District (RCD) completed work on a sediment basin on one of the tributaries to the Lake, while the City implemented an alum treatment to reduce internal nutrient loadings that drive cyanobacteria blooms. The Pinto Lake bloom in 2017 occurred much later in the year and was of shorter duration than previous years. The County continues to monitor and maintain warning signs as needed at both Pinto and Kelly Lakes.

d) County staff maintain ongoing efforts for water quality protection through septic system management, monitoring, and investigation, funded by County Service Area (CSA) 12. Properly functioning onsite sewage systems are a good method of groundwater recharge and contribute to approximately 14% of the San Lorenzo River’s summer baseflow. County staff are working on updating the sewage disposal ordinance to comply with State standards for onsite sewage systems.

6. Small Water Systems

a) County staff continue to assist and oversee 110 small water systems with 5 to 199 connections to maintain compliance with public health standards and meet the ongoing needs of the people and communities that rely upon them. This includes regulation of water quality, quantity, treatment, distribution, water system organization, and evolving compliance requirements. Notable examples include: 1) Overseeing the addition of a 600,000 gallon fire suppression tank, cross-connection

control and other infrastructure upgrades at a local elementary school.2) Concluding a hazardous materials abatement project, adding new wells, and working

with the State Revolving Fund to add needed water storage at a local school for drinking water and emergency purposes.

3) Consolidation of a local commercial water system with the SLVWD. 4) Permitting and oversight of well destruction and replacement for small and large water

systems. 5) Working with other divisions and agencies on resolving numerous landslide/flooding

issues affecting small water systems as a result of last winter’s heavy storms.6) Approving the creation of two new public water systems.

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7) Assisting in the review, approval and opening of the Pasatiempo recycled water plant that will divert over one billion gallons of wastewater to use for irrigation instead of potable water over the course of its functional lifespan.

b) The Drinking Water program met and exceeded its annual evaluation goals and objectives

for water system permitting and inspections established with the State Water Resources Control Board.

c) The County is tracking water use information based on the 2015 requirements for metering and reporting of water use by all small water systems. This provides additional information for assessment of rural water use and provides the County and the water systems with tools to identify and reduce excessive water use. As a result of this new information, the calculated water use of small water systems and rural properties was reduced by 25% and 18% respectively, from previous estimates. In addition, the community systems with 15 or more connections are working on installing meters on individual connections.

d) County staff continues to hold the Small Water Systems Forum to help build technical, managerial, and financial capacity among the small water systems within the community. Meetings topics included regulatory updates, well rehabilitation, non-profit technical assistance organizations such as the California Rural Water Association, and increased public access to water system information.

e) Now in its third year, County staff held a workshop providing hands-on training and assistance for systems to complete their report in the State electronic annual reporting system.

f) Small water systems that use surface water were transferred to State regulation at the beginning of 2017. Throughout the year, County staff provided support to these systems and State staff to navigate this transition.

g) County staff reviewed and approved Compliance Plans for implementation by six small systems in exceedance of the State’s Hexavalent Chromium Maximum Contaminant Level (MCL). Subsequently the MCL was repealed, and is expected to be re-established within the next few years.

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Table 1: Water Use in Santa Cruz County, 2016

Water Supplier Connections PopulationWater Use acre-feet/yr

Ground water

Surface Water

Recycled Water Imported

Santa Cruz City Water Dept. 24,440 96,142 7,856 6% 94%Watsonville City Water Dept 14,368 65,966 6,640 97% 3%Soquel Creek Water Distirct 14,376 40,404 3,090 100%San Lorenzo Valley (SLVWD) 7,321 25,485 1,862 41% 59%Scotts Valley Water Distirct 3,728 10,509 1,268 87% 13%Central Water District 808 2,700 381 100%Lompico Creek Water District 491 1,300 66 60% 40%Big Basin Water Company 596 1,680 135 95% 5%Mount Hermon Association 499 1,283 141 100%Forest Lakes Mutual Water Company 326 1,076 41 100%Smaller Water Systems (5-199 conn.) 2,340 7,157 770 77% 14% 9%Individual Users* 8,000 21,000 2,630 95% 5%Pajaro Agriculture (SC Co only)** 22,430 93% 7%Mid- & North-County Agriculture* 2,400 90% 10%Totals 77,293 274,702 49,710 78% 18% 4% 0.2%Summary of Water Source (acre-feet/year) 38,720 9,186 1,988 75Summary of Non-Agricultural Use (af/yr) 24,880 15,934 8,946 170 75*Values are Estimates**Ag water use on the Monterey County side of the Pajaro Basin, was 18,555 AF in 2016

Santa Cruz County Water Use2016

Municiple/urban water users Private wells/small water systems

Agricuture

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Figure 1: Water Production for Northern Santa Cruz County Water Purveyors* 1984 to 2017

* Water Suppliers include: City of Santa Cruz, Scotts Valley Water District, San Lorenzo Valley Water District, Soquel Creek Water District, and Central Water District

2017 total annual use is water use reported October 2016 through September 2017.

Figure 2: Water Production Compared to Precipitation

0.05.010.015.020.025.030.035.040.045.050.055.060.065.070.075.080.085.090.095.0100.0105.0110.0115.0120.0125.0130.0135.0140.0145.0150.0

0

5,000

10,000

15,000

20,000

25,000

30,000

RAIN

FALL

IN IN

CHES

WAT

ER P

RODU

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N IN

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E-FE

ET

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Water ProductionRain trend

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Figure 3: Inland Groundwater Levels, Mid-County Basin, Soquel Hills

Figure 4: Coastal Groundwater Levels, Mid-County Basin, Capitola, Monitoring Well SC-5A

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STATE OF CALIFORNIA – CALIFORNIA NATURAL RESOURCES AGENCY EDMUND G. BROWN JR., GovernorDEPARTMENT OF WATER RESOURCES1416 NINTH STREET, P.O. BOX 942836SACRAMENTO, CA 94236-0001(916) 653-5791

December 29, 2017 Piret HarmonGeneral ManagerScotts Valley Water District2 Civic Center DriveScotts Valley, California 95066

RE: Urban Water Management Plan Requirements Addressed

Dear M. Harmon:

The Department of Water Resources (DWR) has reviewed the Scotts Valley Water District’s2015 Urban Water Management Plan (UWMP) received on June 20, 2016. The California Water Code (CWC) directs DWR to report to the legislature once every five years on the status of submitted UWMPs. In meeting this legislative reporting requirement, DWR reviews all submitted UWMPs.

DWR’s review of the Scotts Valley Water District’s 2015 plan has found that the UWMPaddresses the requirements of the CWC. DWR’s review of plans is limited to assessing whether suppliers have addressed the required legislative elements. In its review, DWR does not evaluate or analyze the supplier’s UWMP data, projections, or water management strategies. This letter acknowledges that the Scotts Valley Water District’s 2015 UWMPaddresses the CWC requirements. The results of the review will be provided to DWR’s Financial Assistance Branch.

If you have any questions regarding the review of the UWMP or urban water management planning, please call Gwen Huff at 916-651-9672.

Sincerely,

Vicki LakeUnit ChiefUrban Water Use Efficiency(916) 651-0740

Electronic cc: Sachi Itagaki, P.E., QSD

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Documents

April 27, 2006 - Scotts Valley · water education foundation water 101: the basics and beyond 02/22/2018 sacramento availability of public records provided to the board of directors: