REGULAR BOARD MEETING · Scotts Valley Water District Board of Directors Agenda – 08/08/19 Page 2 5. Business Business items are more complex in nature and are considered individually

AGENDA PACKET

REGULAR BOARD MEETING 08/08/19 at 7:00 p.m.

Santa Margarita Community Room 2 Civic Center Drive

Scotts Valley, California

BOARD OF DIRECTORS

Danny Reber, President Wade Leishman, Vice President

Bill Ekwall, Director Chris Perri, Director Ruth Stiles, Director

Piret Harmon, General Manager

Water Industry Acronyms

AF – Acre Foot AFY – Acre Foot per Year ACWA – Association of California Water Agencies ACWA JPIA – ACWA Joint Powers Insurance Authority AWWA – American Water Works Association BMP – Best Management Practices CCR – Consumer Confidence Report CD – Certificate of Deposit CEQA - California Environmental Quality Act CSDA – California Special District Association DHS - Department of Health Services DWR – Department of Water Resources EIR – Environmental Impact Report EPA – Environmental Protection Agency GASB – Governmental Accounting Standards Board IRWM – Integrated Regional Water Management JPA – Joint Powers Agreement LAIF – Local Agency Investment Fund LAFCO – Local Agency Formation Commission LID – Low Impact Development MCL – Maximum Containment Level MGD – Million Gallons per Day MGY – Million Gallons per Year MOU – Memorandum of Understanding O&M – Operations and Maintenance PERS – Public Employees Retirement System PHG – Public Health Goal PPB – Parts Per Billion PRV – Pressure Relief Valve PVC Pipe – Polyvinyl Chloride Pipe RWMF – Regional Water Management Foundation RFP – Request for Proposals ROW – Right-of-way

RWQCB – Regional Water Quality Control Board SCWD – Santa Cruz Water Department (City of) SDWA – Safe Drinking Water Act SGMA – Sustainable Groundwater Management Act SLVWD – San Lorenzo Valley Water District SMGWA – Santa Margarita Groundwater Agency SqCWD – Soquel Creek Water District SWRCB – State Water Resources Control Board TP – Treatment Plant

BOARD OF DIRECTORS PRESIDENT Danny Reber

VICE PRESIDENT Wade Leishman Bill Ekwall Chris Perri Ruth Stiles Board of Directors

Regular Meeting Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California 08/08/19 7:00 p.m.

Agenda

1. Convene

1.1 Call to Order and Roll Call

1.2 Pledge of Allegiance and Invocation

1.3 Closed Session Report

1.4 Additions/Deletions to the Agenda

1.5 Oral Communications on items not on the Agenda

2. AdministrativeAdministrative items are informational in nature and do not include an agenda report.

2.1 Approval of Minutes – 06/20/19 Regular Board Meeting

2.2 PresentationsCommunity (Public) Outreach and Communication Year-end Update Bill Miller, Miller Maxfield

2.3 Committee and other Agency Meeting Reports

Executive & Public Affairs Committee 07/29/19

Finance & Personnel Committee 06/18/19 and 07/30/19

Interagency Committee (none)

Water Resources & Engineering Committee 06/17/19 and 07/29/19

Santa Margarita Groundwater Agency (SMGWA) 07/25/19

2.4 Letter of Intent Manana Woods Well Site APN 022-061-05 and 022-601-13

3. Consent (None)

Consent items are routine items that are approved by a single motion. Each item includesan agenda report with the action to be taken.

4. Public Hearings (None)

Scotts Valley Water District Board of Directors Agenda – 08/08/19 Page 2

5. BusinessBusiness items are more complex in nature and are considered individually. Each item hasan agenda report with a recommendation and will have an oral report provided by staff.

5.1 Public Involvement in Board Activities

Recommendation: Provide direction to staff

5.2 Association of California Water Agencies (ACWA) Region 5 Board Elections for the2020-2021 Term

Recommendation: Direct the General Manager to submit the Ballot for ACWA Region 5 Board Elections for the 2020-2021 term.

5.3 Compensation Adjustment for Exempt Classifications

Recommendation: Approve the compensation adjustments for Finance and Customer Service Manager, Operations Manager and Assistant to General Manager classifications.

5.4 Policy 100-17-3 Technology Resources

Recommendation: Adopt Resolution No. 04-19 revising Policy P100-17-3 Technology Resources.

6. Staff Reports

6.1 LegalDistrict Counsel - oral

6.2 Administration General Manager - oral

6.3 Finance Preliminary Financial Reports 07/01/18 through 06/30/19

6.4 Operations Operations Report - oral Production, Demand and Rainfall Reports through 06/30/19 Leak Adjustment Program Report 07/01/18 through 06/30/19 Development Projects Status Report through 07/31/19

7. Directors Reports

Travel and Meetings


ACWA and ACWA/JPIA Updates Other

8. Written Correspondence

Safe Drinking Water: AB 100 (Support) and SB 100 (Oppose) - Advocacy

9. Community Relations (None)

10. Closed Session

10.1 Pursuant to Government Code Section §54957Public Employee Performance Evaluation Title: General Manager

11. Report on Closed Session

12. Additional Business Items

12.1 Employment Agreement with General Manager

Recommendation: Approve the employment agreement with General Manager.

13. Future ItemsSB998 ComplianceAnnual Reimbursment DisclosureValidated Water Loss Audit Report 2018

14. Meetings and Event Calendar

Regular Board MeetingsSanta Margarita Community Room

09/12/19 10/10/19 11/14/19

Committee Meetings District Conference Room

08/19/19 Executive & Public Affairs 08/20/19 Finance & Personnel 08/19/19 Water Resources & Engineering TBD Interagency

Santa Margarita Groundwater Agency Board Regular Board Meetings


Santa Margarita Community Room 08/22/19 09/26/19 10/24/19

Association of California Water Agencies (ACWA) Events

12/03/19 – 12/05/19 Fall Conference San Diego

Conferences/Trainings/Workshops/Webinars

15. Adjourn MeetingThe next regular meeting of the Scotts Valley Waer District Board of Directors is scheduledfor 09/12/19 at 7:00 p.m. in the Santa Margarita Community Room, 2 Civic Center Drive,Scotts Valley, California.

Availability of Public Records Provided to the Board of Directors The District will 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

Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California

06/20/19 7:00 p.m.

Minutes

1. Convene

1.1. Call to Order and Roll Call

President Reber called the meeting to order at 7:01 p.m. in the Santa Margarita Community Room, 2 Civic Center Drive, Scotts Valley, California.

Present Directors Staff Bill Ekwall Bob Bosso, Legal Counsel Wade Leishman Piret Harmon, General Manager Chris Perri Nick Kurns, Finance &Customer Service Manager Danny Reber David McNair, Operations Manager Ruth Stiles Donna Paul, Assistant to General Manager LeAnne Ravinale, Water Use Efficiency Coordinator

Audience The Mattwandel Family

1.2. Pledge of Allegiance and Invocation Director Ekwall led the pledge of allegiance and Director Reber the invocation.

1.3. Closed Session Report Legal Counsel Bosso reported the employees union memorandum of understanding was discussed.

1.4. Additions/Deletions to the Agenda None.

1.5. Oral Communications None.

2. Administrative

2.1 Approval of Minutes – 05/09/19 Regular Board Meeting

MOTION carried to approve the minutes of the 05/09/19 regular Board Meeting by unanimous voice vote.

2.2 Presentations Water Wise Video Contest Winner

How Can I Reduce Water When I Landscape? Winston Mattwandel, SVHS

2.3 Committee and other Agency Meeting Reports

2.1 - 1

DRAFT

https://www.youtube.com/watch?v=9UcxW8QMl7E

https://www.youtube.com/watch?v=9UcxW8QMl7E

Scotts Valley Water District Board of Directors Meeting Minutes – 06/20/19 Page 2

Executive & Public Affairs Committee (None)

Finance & Personnel Committee 05/14/19 There was nothing further to add to the written report.

Interagency Committee 05/13/19 In addition to the written report, Director Perri provided additional information on the infographic.

Water Resources & Engineering Committee (None)

Santa Margarita Groundwater Agency (SMGWA) 05/23/19 In addition to the written report, Director Perri reported on the addition of tasks related to the facilitation services.

2.4 Memorandum of Understanding between the SVWD and the SVWDEO effective 07/02/19 – 07/01/23

2.5 ACWA Candidate Nominations President/Vice President for the 2020-2021 Term

2.6 2019 Election of Special District Member on LAFCO Board consensus was to cast the District’s vote for Edward Harmon.

3. Consent (None)

4. Public Hearings (None)

5. Business

5.1 FY 2020 Proposed Budget

Finance and Customer Service Manager Kurns presented the FY 2020 Proposed Budget. Click here to view the presentation.

MOTION carried to approve the Fiscal Year 2020 (FY 2020) Budget, including the FY 2020 Work Plan by unanimous voice vote.

5.2 Board Best Practices

General Manager Harmon provided the staff report.

MOTION carried to approve the Board Best Practices, June 2019 update by unanimous voice vote.

5.3 Employee Handbook and Employment Policies


MOTION carried to approve the Employee Handbook, June 2019 update by unanimous voice vote.

MOTION carried to adopt Resolution No. 02-19 revising Policy P100-17-4 Harassment, Discrimination and Retaliation Prevention by unanimous roll call vote..

5.4 Rate Assistance Program

2.1 - 2

DRAFT

https://www.svwd.org/sites/default/files/board-meetings/presentations/FY%202020%20Budget.pdf

https://www.svwd.org/sites/default/files/board-meetings/presentations/FY%202020%20Budget.pdf



MOTION carried to approve the Rate Assistance Program by unanimous voice vote.

MOTION carried to adopt Resolution No. 03-19 establishing a Basic Meter Charge and a Uniform Rate for Rate Assistance Program.

6. Staff Reports

6.1 LegalDistrict Counsel reported that there has been no action from the legislature or the courts.

6.2 Administrative The General Managers report is appended.

6.3 Finance Financial Reports for period ending 04/30/19 The financial reports were accepted without comment.

6.4 Operations Operations Manager McNair reported on the Orchard Run water treatment plant updgrades project and provided new information on the Purified Recycled Water Recharge project.

7. Directors Reports

Debrief on Board Workshop Group to Team 03/27/19Board Assessment Survey

The Board discussed the Group to Team Workshop and the results of the assessmentsurvey.

Travel and MeetingsACWA and ACWA/JPIA UpdatesACWA Spring Conference Attendance Report

Director Stiles reported on the recent Groundwater Summit in Fresno.Director Ekwall reported on sessions attended at the ACWA Spring Conference in Monterey.

8. Written Correspondence

ACWA Groundwater Committee Meeting Notes 05/07/19ACWA Region 5 Elections North Coast County Water District 05/28/19Santa Cruz County Water Rebate Programs

The written correspondence was accepted without comment.

9. Community Relations

Newsletter May 2019

The Community Relations item was accepted without comment.

2.1 - 3

DRAFT


10. Closed Session (None)

11. Report on Closed Session and Additional Items (None)

12. Future Items

SB998 Compliance Strategic Planning Session (October/November)

13. Meetings and Event Calendar

Regular Board Meetings Santa Margarita Community Room

08/08/19 09/12/19

Committee Meetings District Conference Room

07/29/19 Executive & Public Affairs 07/29/19 Finance & Personnel 07/30/19 Water Resources & Engineering Interagency (none)

Santa Margarita Groundwater Agency Board Regular Board Meetings Santa Margarita Community Room

07/25/19 08/22/19 09/26/19

Association of California Water Agencies (ACWA) Events 12/03/19 – 12/05/19 Fall Conference San Diego

Conferences/Trainings/Workshops/Webinars

14. Adjourn Meeting

The meeting adjourned at 9:17 p.m.

Approved: Attest:

Danny Reber, Board President Piret Harmon, Board Secretary

2.1 - 4

DRAFT

STAFF REPORT - Administration Scotts Valley Water District

Date: 06/20/19

To: Board of Directors

From: General Manager

Item: Staff Reports 6.2

1. Strategic Planning Workshop scheduling – soliciting input from the board on the timing of this activity with possible options of fall of 2019 or spring of 2020.

2. Reminding the Directors sign up to volunteer at the District booth on Farmers Market. Need individuals for July 27, August 24, September 28 and October 26.

3. On June 9, the 2019 Conference Committee on the Budget approved a safe drinking water funding solution for disadvantaged communities in California that do not have access to safe drinking water. The solution, which does not involve a water tax, will be put in place through the enactment of the 2019-’20 State Budget and related trailer bill language.

4. Staff is proposing to cancel July 11, 2019 board meeting due to the lack of business.

5. District offices will be closed on Friday, July 5.

6. I will be on vacation June 28 – July 13.

2.1 - 5

Executive and Public Affairs Committee Meeting District Conference Room

2 Civic Center Drive, Scotts Valley, CA 95066 07/29/19 – 4:00 p.m.

Meeting Report

1. ConveneThe meeting convened at 4:03 p.m. in the District Conference Room, 2 Civic CenterDrive, Scotts Valley, California.

Members: Director Reber and Director Leishman.Staff: General Manager Harmon.Guests: Bill Maxfield, Miller Maxfield.

2. Discussion Items

2.1 Quarterly Community Relations / Public Outreach Update

District’s communications consultant Bill Maxfield reported on recent activities andoutreach efforts highlighting i-Meters launch. Social media metrics report and previewof District videos were presented. Bill Maxfield will be doing a bi-annual report to theboard at the August meeting.

2.2 Public Members on Committees

In 2017 the Board discussed an idea to include public members on Committees. At thattime, the Board postponed the decision and recommended that the topic be discussedin the future. The Committee directed staff to bring the item to a board meetingallowing for all Directors to share their opinion on more inclusive communityinvolvement in Board/Committee activities.

2.3 Strategic Planning Workshop

In the Spring of 2019, the Board President Retreat was used to carry out a boarddevelopment workshop (From Group to Team). To better prepare for FY 2021 budgetpreparation season in Spring of 2020, the Executive Committee determined it valuableto conduct a Strategic Planning Workshop in the Fall of 2019 and directed staff toproceed with scheduling a special board meeting for this purpose.

2.3 - 1

2.4 Closed Session

At 4:47 p.m., closed session convened with Director Reber, Director Leishman and General Manager Harmon present.

Pursuant to Government Code 54957 Public Employee Performance Evaluation Title: General Manager

At 5:16 p.m. closed session ended and open session reconvened.

3. Future Agenda Items

Records Retention PolicyDigital Access to Board Meetings (include benchmarking/survey of what is used at otherpublic agencies)

4. Adjournment

At 5:20 p.m. the meeting adjourned. Next meeting is tentatively scheduled for 08/19/194 p.m. and might be cancelled due to the lack of items.

2.3 - 2

Finance and Personnel Committee District Conference Room


Meeting Report

1. ConveneThe meeting convened at 4:07 p.m. in the District Conference, 2 Civic Center Drive, ScottsValley California.

Present: Director Leishman and Director Stiles, Guests: Director Ekwall. Staff: General Manager (GM) Harmon, Finance and Customer Service (FSCM) Manager

Kurns and Assistant to General Manager Paul.

2. Discussion Items

2.1 SB998 Implementation

The Committee discussed the implementation for the discontinuation of residential water service. All agencies must adopt a policy not later than 02/01/20.

2.2 Financial Reports for Period ending 5/31/19

The Committee reviewed and discussed the financial reports for the period ending 05/31/19.

3. Future Agenda ItemsInvestment Strategy

4. Adjourn


2.3 - 3

Finance and Personnel Committee District Conference Room


Meeting Report

1. ConveneThe meeting convened at 4:02 p.m. in the District Conference Room, 2 Civic CenterDrive, Scotts Valley, California.

Members: Director Reber and Director Stiles.Staff: General Manager (GM) Harmon and Assistant to General Manager Paul. Guests: None.

2. Business Items

2.1 Compensation Adjustments – Exempt Employees

The Committee received information and discussed this item.

Action: The Committee concurs with the General Manager’s recommendation forthe compensation adjustments.

3. Discussion Items

3.1 Financial Reports 07/01/18 through 06/30/19 (preliminary)

The Committee reviewed and discussed this item.

3.2 Water Bill New Structure

The Committee received information and discussed this item.

4. Future Agenda ItemsAudit Entrance Conference

5. Adjourn


2.3 - 4

Water Resources and Engineering Committee District Conference Room

2 Civic Center Drive, Scotts Valley, CA 95066 06/17/19 – 10:00 a.m.

Meeting Report

1. Convene

The meeting convened at 10:00 a.m.in the District Conference Room, 2 Civic CenterDrive, Scotts Valley, California.

Members: Director Ekwall and Director Stiles.Staff: General Manager Harmon, Finance and Customer Service Manager

Kurns, Engineering Technician Knutson, Operations Manager McNair, Assistant to General Manager Paul and Water Use Efficiency Coordinator Ravinale.

Guests: None.

2. Discussion Items

2.1 Leak Adjustment Program Report for period ending 05/31/19The Committee received and discussed the Leak Adjustment Program Report.

2.2 Project Update: AMI and Water Smart The Committee received and discussed the AMI and Water Smart project update. A demonstration of the water smart dashboard was featured.

2.3 Project Update: Orchard Run Water Treatment Plant Improvements The Committee received and discussed the Orchard Run Water Treatment Plant improvements project update.

2.4 Project Update: EIR, Purified Recycled Water Recharge The Committee received and discussed the project update for the EIR for the Purified Recycled Water Recharge.

3. Future Agenda ItemsNone.

4. AdjournmentThe meeting adjourned at 11:06 a.m.

2.3 - 5

Water Resources and Engineering Committee District Conference Room

2 Civic Center Drive, Scotts Valley, California 07/29/19 10:00 a.m.

Meeting Report

1. Convene

The meeting convened at 10:08 a.m. in the District Conference, 2 Civic Center Drive, ScottsValley California.

Present: Director Stiles, Director Perri

Guests: None.

Staff: General Manager Harmon, Operations Supervisor Legg, Engineering Technician Knutson, WUE Coordinator Ravinale

2. Discussion Items

2.1 Leak Adjustment Program Report 07/01/18 through 06/30/19

Staff presented the FY 2019 Leak Adjustment Report along with FY 2018. The committeediscussed how to utilize these two reports as baseline for future reports and analytics of leaks.

2.2 Manana Woods Well Site Letter of Intent

The Committee supports the action of sending a letter to SLVWD about SVWD interest in thissite.

3. Future Agenda Items- Recycled Water Supply Situation- Purified Recycled Water Recharge Project Update- Wildfire Preparedness- Roundtable Discussion (standing item for all committee meetings)

4. Adjourn

The meeting adjourned at 10:52 a.m.

2.3 - 6

To: Scotts Valley Water District Board of Directors

Date:

Subject:

July 26, 2019

Santa Margarita Groundwater Agency Board of Directors Meeting Summary

Meeting date: July 25, 2019

The Board of Directors approved the May 23, 2019, meeting minutes.

No action was taken by the Board outside of administrative matters. After the meeting adjourned, the Board and public took part in an informational workshop designed around defining undesirable results within the context of SGMA.

A copy of the presentation associated with the workshop may be viewed here.

You may listen to audio recording of the July 25, 2019 Santa Margarita Board of Directors meeting here.

Submitted by,

Nicholas Wallace

Administrative Assistant

Santa Margarita Groundwater Agency

2.3 - 7

https://smgwa.org/wp-content/uploads/2019/07/Sustainability-Indicators-Presentation.pdf

https://smgwa.org/wp-content/uploads/2019/07/Sustainability-Indicators-Presentation.pdf

https://smgwa.org/meetings/

https://smgwa.org/meetings/

August 9, 2019 Board of Directors San Lorenzo Valley Water District 13060 CA-9 Boulder Creek, CA 95006 Re: APN 022-061-05 and 022-601-13 Dear Board of Directors: The Scotts Valley Water District is interested in acquiring two parcels that San Lorenzo Valley Water District owns in the City of Scotts Valley, which were formerly used as a well site to supply the Manana Woods area. The parcels are located in a commercially zoned area near Kings Village, that has been identified as a potential site for a water treatment facility to serve a new production well in the same vicinity. The parcels are identified on the enclosed map as APN 022-601-05 and 022-601-13. Please advise if your District is willing to consider selling the above mentioned parcels to the Scotts Valley Water District as surplus property. We would like to conduct a more detailed engineering evaluation before proceeding with negotiating a fair price that is mutually agreeable. Very truly yours, Piret Harmon, General Manager Enclosed: Assessor’s Map No 22-60

2.4 - 1

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2.4 - 2

AGENDA REPORT Scotts Valley Water District

Date: 08/08/19


Item: Business 5.1

Subject: Public Involvement in Board Activities

Reason: Supports Strategic Goal No. 4 Public Outreach: Foster relationships and communications with District’s stakeholders and the community

SUMMARY Recommendation: Provide direction to staff.

Fiscal Impact: No direct impact.

Previous Related Action: On 03/21/17, the Board discussed ways to advance the awareness on District’s activities among the District’s stakeholders, considered including community members on Board committees, and directed staff to develop a process for such appointments.

On 05/04/17 staff presented the draft guidelines for community members on board commit-tees and the Board decided to postpone the decision until a future date.

On 07/29/19 the Executive and Public Affairs Committee resumed the discussion on this item and decided to bring it for the board consideration.

DISCUSSION The District is continually looking for ways to increase awareness about its activities, engage the community and include diversity of opinions in the decision-making process. One approach for achieving this is to consider involving community representatives in the board activities. In ad-dition to the idea of adding a community member representative to the Water Resources and Engineering Committee and to the Finance and Personnel Committee that has been previously discussed, an appointment of an Associate or Junior Board Member could be of value. Staff is inviting the Board to contemplate various options and provide direction to staff.

Submitted,

Piret Harmon General Manager

5.1 - 1


Date: 08/08/19


Item: Business 5.2

Subject: Association of California Water Agencies (ACWA) Region 5 Board Elections for the 2020-2021 Term

Reason: Complies with ACWA Region 5 Rules and Regulations and ACWA Bylaws

SUMMARY Recommendation: Direct the General Manager to submit the Ballot for ACWA Region 5 Board Elections for the 2020-2021 term.

Fiscal Impact: None

Previous Related Action: On 08/10/17 the Board directed the General Manager to submit the Ballot for ACWA Region 5 Board Elections for the 2018-2019 term.

BACKGROUND ACWA’s membership is organized into 10 hydrologic regions. The regional structure promotes grassroots activism by uniting members around geography and shared interests and challenges. Region 5 is comprised of the following ten counties: Alameda, Contra Costa, Monterey, San Benito, San Luis Obispo, San Francisco, San Mateo, Santa Barbara, Santa Clara and Santa Cruz. Approximately 45 water, flood control, services, utility, irrigation, reclamation and sanitation districts and cities are members of Region 5. This area is roughly 15,000 square miles and has a population of over 7 million.

DISCUSSION Region 5 Board Members are elected to represent the issues, concerns and needs of the region. The Region 5 Chair and Vice-chair will serve on ACWA Board of Directors for the next two-year term beginning 01/01/20. Additionally, the newly elected chair and vice chair will make the Region 5 committee appointment recommendations to the ACWA president for the 2020-2021 term. Also, either the chair of vice chair will hold a seat on the ACWA Finance Committee.

The Region 5 Nominating Committee has recommended a slate of candidates for the upcoming two-year term. Each member agency is entitled to cast one vote. The Board should consider voting for the recommended slate of candidates or make individual selections for chair, vice

5.2 - 1

chair and board members (5) and direct staff to complete and submit the ballot by the 09/30/19 deadline.

Submitted,

Piret Harmon General Manager Enclosed: ACWA Region 5 Board Ballot

5.2 - 2

2020-2021TERM

OFFICIAL

Please return completed ballot by September 30, 2019

E-mail: [email protected]: ACWA

910 K Street, Suite 100 Sacramento, CA 95814

General Voting Instructions:

1 You may either vote for the slate recommended by the Region 5 Nominating Committee or vote for individual region board members. Please mark the appropriate box to indicate your decision.

2 Please complete your agency information. The authorized representative is determined by your agency in accordance with your agency’s policies and procedures.

Nominating Committee’s Recommended SlateI concur with the Region 5 Nominating Committee’s recommended slate below.

CHAIR: Frank Mellon, Board Member, East Bay Municipal Utility DistrictVICE CHAIR: John Varela, Director – District 1, Santa Clara Valley Water DistrictBOARD MEMBERS:• Ernesto A. Avila, Director, Contra Costa Water District• Mary Bannister, Director – Division B, Pajaro Valley Water Management Agency• Jack Burgett, Director, North Coast County Water District • Bill Rosen, Director, Goleta Water District• Katherine A. Stewart, Director, Vandenberg Village Community Services District

OR

Individual Board Candidate NominationsI do not concur with the Region 5 Nominating Committee’s recommended slate. I will vote for individual candidates below as indicated.

CANDIDATES FOR CHAIR: (CHOOSE ONE)Frank Mellon, Board Member, East Bay Municipal Utility DistrictSarah Palmer, Director, Zone 7 Water AgencyKatherine A. Stewart, Director, Vandenberg Village Community Services District John H. Weed, Director, Alameda County Water District

CANDIDATES FOR VICE CHAIR: (CHOOSE ONE)Frank Mellon, Board Member, East Bay Municipal Utility DistrictSarah Palmer, Director, Zone 7 Water AgencyKatherine A. Stewart, Director, Vandenberg Village Community Services District John H. Weed, Director, Alameda County Water District

CANDIDATES FOR BOARD MEMBERS: (MAX OF 5 CHOICES)Ernesto A. Avila, Director, Contra Costa Water DistrictMary Bannister, Director – Division B, Pajaro Valley Water Management Agency Jack Burgett, Director, North Coast County Water District Richard (Ric) Lohman, Director, Montara Water & Sanitary DistrictFrank Mellon, Board Member, East Bay Municipal Utility DistrictSarah Palmer, Director, Zone 7 Water AgencyBill Rosen, Director, Goleta Water DistrictKatherine A. Stewart, Director, Vandenberg Village Community Services DistrictJohn Varela, Director – District 1, Santa Clara Valley Water DistrictJohn H. Weed, Director, Alameda County Water District

1

AGENCY NAME

AUTHORIZED REPRESENTATIVE DATE

2

REGION 5 Board Ballot

5.2 - 3


Date: 08/08/19


Item: Business 5.3

Subject: Compensation Adjustment for Exempt Classifications

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

SUMMARY Recommendation: Approve the compensation adjustments for Finance and Customer Ser-vice Manager, Operations Manager and Assistant to General Manager classifications.

Fiscal Impact: The total annual salary adjustment is $19,970 that represents a 5.85% increase. The increase in FY 2020 salary expense is $18,435 and the funds are available in the FY 2020 budget.

Previous Related Action: On 08/09/18 Board meeting the Board approved compensation ad-justments for the positions in exempt classifications.

On 07/30/19 the Finance and Personnel Committee received the report from the General Man-ager on accomplishments and proposed compensation adjustments for the three exempt classi-fications. The Committee concurred with the General Manager’s recommendation for the com-pensation adjustment effective 07/30/19.

BACKGROUND Operations Manager, Finance and Customer Service Manager and Assistant to General Manag-er are District’s at-will classifications which employment terms and conditions are set by the employment agreement with each individual hired to fill these positions. Annually, the General Manager conducts performance reviews with the at-will employees and may recommend com-pensation adjustments.

To support the District’s strategic goals and introduce greater level of accountability, effective FY 2015 the reviews for all exempt employees are conducted following the close of the Dis-trict’s fiscal year. This allows for alignment of the District’s annual work plan with the objectives of the executive management team, creates a more cohesive allocation of the tasks and ena-bles each individual to more directly contribute to the success of the organization. Reviewing the performance of the individuals in light of the collective accomplishments of the District pro-vides for more transparent, objective and fair assessment.

5.3 -1

DISCUSSION The executive team that is made up of Operations Manager, Finance and Customer Service Manager, and Assistant to General Manager is the driving force behind carrying out the work plan and ensuring that the District is accomplishing tasks to meet the strategic goals set by the Board of Directors. They are the ones responsible for not only completing the noteworthy pro-jects and implementing innovative ideas but also for making sure that the necessary routine tasks get done in a timely manner no matter what obstacles the District is facing.

The attached FY 2019 Work Plan Status presents a detailed overview of the last year’s accom-plishments by each Division.

The proposed compensation adjustments for the at-will employees are based on their individu-al contributions in support of the District’s strategic goals, their management/leadership com-petencies and salary competitiveness for the respective classifications.

Based on the performance and market analysis, the new proposed salary for the Operations Manager is $154,555, Finance and Customer Service Manager $125,990 and Assistant to Gen-eral Manager $80,667.

Other changes to the benefits were made in alignment with the recent SVWD Employees Union MOU, effective 07/02/19. The at-will employees pay the full cost of the employee contribution of the PERS retirement benefit and are entitled to receive all other employee benefits as pro-vided to the regular full-time District employees, but not including overtime or compensatory time off benefits.

If approved the compensation adjustments will go into effect on 07/30/19.

Submitted,


Enclosed: FY 2019 Work Plan Status Compensation Adjustment Matrix

5.3 -2

SCOTTS VALLEY WATER DISTRICT STRATEGIC WORK PLAN FY 2019

GOALS

MANAGEMENT OBJECTIVES

Complete construction on replacing the Whispering Pines recycled water pump line

Completed construction on replacing the Whispering Pines recycled water pump line in December 2018.

Initiate environmental report preparation for recycled water groundwater recharge (either program level or project specific)

Executed contract with ESA for EIR. Discovered that the project scope needs more engineering detail - retained KJ to explore options for solutions dealing with brine discharge and source water reliability.

Continue operating the RW Fill Station May through October 2018, evaluate and reconsider in Spring 2019

Operated fill station 3 days a week through October 2018. Evaluated the viability and recommended the closure of the station that was approved by board in May 2019.

Carry out the work plan under MOA with County, SCWD and SLVWD evaluating the feasibility of conjunctive use with those agencies

No progress was made due to the status of the project elements administered by MOA partner agencies.

Activities are pending on shift in priorities with key member agencies. Look forward to getting these evaluations underway in the near future.

Explore opportunities for winter flow in-lieu exchange with SLVWD

No progress was made due to the status of the work conducted by County and SLVWD.

Project discussions with SLVWD are on hold.

Ensure active participation and productive involvement in Santa Margarita Groundwater Agency (SMGWA) which goal is development of the groundwater sustainability plan

Continued leading the administrative support activities for SMGWA: GSP grant agreement signed, basin prioritization revised, timely board support (meetings, regulatory training, travel), timely committee support (meetings), planning and hosting community education series, FY2020 budget preparation and approval, technical consultant RFQ process and contract negotiations, ongoing website and records maintenance.

1.1.1 Maximizing the potential use of recycled water

1.1.2 Identifying and implementing regionally

beneficial conjunctive use projects

1. Water Resource Management: Meet the current and future water supply needs of its customers

FY 2019 TASKS ADMINISTRATION ACCOMPLISHMENTS FINANCE ACCOMPLISHMENTS OPERATIONS ACCOMPLISHMENTS

1.1 Utilize the additional recharge capacity in the groundwater basin by

5.3 -3


GOALS

MANAGEMENT OBJECTIVESFY 2019 TASKS ADMINISTRATION ACCOMPLISHMENTS FINANCE ACCOMPLISHMENTS OPERATIONS ACCOMPLISHMENTS

Complete production meter testing at all treatment plants.

Not completed. However, performed bench testing of 50 residential meters - the results will be used to inform the 2018 annual water loss report.

Carry out Water Use Efficiency Program Think Twice with a goal of maintaining flat potable system demand and continuing water use efficiency education

Completed the following activities in support of Think Twice program: 1) Processed indoor and outdoor rebates: 24 pressure regulators, 56 toilets, 18,240 sqft of turf, 6,854 sqft low volume irrigation, 4 smart controller, 0 greywater, 0 rainwater harvest, 4 downspout diversions, 2 hardscape replacements.2) Active involvement in County Conservation Coalition: attended all meetings, serving on sub-committees and outreach events, provided outreach at County Fair, Earth Day, and Harvest Festival, and oriented SVHS students for the Regional Student Waterwise Video Contest.3) Advised customers at Farmers Markets,presented at Master Gardener’s Rater Training Workshop, and six classes at SVHS.4) Issued 2 water waste violations that resulted in customer education and compliance, assisted over 60 customers to enroll in EyeOnWater as a result of leak adjustments or investigation of leaks.5) Processed an average of 3 plumbing retrofitsupon resale forms per month.

Develop criteria and metrics for assessing ROI of various water efficiency program elements

Developed a QBE Report in Springbrook that assists WUE and Customer Service staff by displaying consumption and billing history together for a defined period and account.

On-going, staff reviewed an existing spreadsheet created a few years ago for possible updating. This report has been passed onto Finance/Customer Service.

1.2 Improve the esthetics of the drinking water

Complete the design, permitting of the Orchard Run Water Treatment Plant upgrades (filter upgrades and reclaim tank replacement). Complete tank replacement component in FY 2019, water quality improvements in FY 2020.

Executed design contract for ORWTP upgrades in November 2018. Staff reviewed and approved the 90% design submittal in April 2019. Anticipate conducting bid solicitation in late summer and award contract early fall 2019.

1.1.3 Achieving maximum feasible water conservation

and efficient use

5.3 -4


GOALS


Replace Northridge Pressure Regulator Station and 400 ft of potable main

Rebuilt Northridge PRV Station #2 in May 2019. The rebuild eliminated the need for PRV Station #3, and, the 400 ft main that connects to #3 - both will be retired in August 2019.

Replace 800-1000 meters Provided creative staffing solution by administering the conversion of a part-time temporary position to a full-time temporary to ensure continuity and keep the project moving forward.

Replaced 889 meters in FY 2019.

Conduct Well 3B inspection and cleaning

Completed video assessment of Well 3B in May 2019. The condition assessment concluded that no additional rehabilitation work is needed at this time. The well was restored to service in June 2019.

Complete the recoating of Sequoia Tank

Completed exterior tank recoating in October 2018. Interior coating work was postponed due to a new requirement to replace the inlet/outlet piping that serves the tank. Piping design work is underway and will be included with interior coating project with anticipated completion in December 2019.

Commense work on Bethany Tank rehabilitation - investigation of the situation and development of action plan in FY 2019; design, geotech and temporary storage in FY 2020

Completed geotech report and tank site grading by June 2019. Temporary tanks will be installed on the site in August 2019 allowing for a tank inspection that will inform how this project moves forward.

Replace filter control system at El Pueblo Water Treatment Plant

On-going. Staff have held several planning sessions with Sycal who will provide communication line drawings. Staff will order and install equipment. Project completion target is December 2019.

2.1 Maintain all assets within their useful life threshold

2. Infrastructure Integrity: Provide continual investment in District's infrastructure and process improvements

5.3 -5


GOALS


Complete installation of AMI equipment on 1000 meters

Provided creative staffing solution by administering the conversion of a part-time temporary position to a full-time temporary to keep the project moving forward.

Utilizing a full time limited term employee, hired in February 2019, replaced 889 meters and installed additional 830 AMI endpoints on existing meters. Total of 1,719 services were AMI enabled since in FY 2019.

Evaluation and consideration of improvements customer service/utility billing supported by AMI

This activity was slightly delayed due to the switch to a new customer portal. Participated in evaluating the firms and testing the interface of the new portal.

Project scope changed by replacing the previous portal with enhanced Customer Engagement Portal (WaterSmart) - made significant progress in implementing the project with the software nearly deployed. Evaluated procedural impacts and recommended updates that are currently underway. Information for customers is being developed.

Evaluated and selected a customer portal that provides enhanced features and customer experience. Received proposals and quotes from three vendors. Entered into a contract with WaterSmart in January 2019. Coordinated portal implementation process which is now mostly completed.

Finish the implementation of the integrated Work Order and Maintenance Management System, ensure connectivity with Springbrook (and potentially other softwares)

No progress was made on integrating Work Orders with Springbrook. Springbrook was not willing to open an API as of June 30, 2019.

On-going. Staff is routinely entering completed work orders and system data into the Mobile Maintenance System. GIS graphics were updated and now provide a higher resolution image.

Conduct an energy assessment of District's operation and consider implementation of efficiency improvement recommendations if

Energy assessment by Engie was cancelled due to the lack of interest from the vendor.

Complete installation and configuration of AV system upgrade in the Santa Margarita Community Room

Managed the AV project including installation of a modern comprehensive solution consisting of a Clary One screen along with second 65" screen, camera, microphones and back-end equipment. Coordinated the installation of security access for the storage room.

Completed installation and configuration of the TV in the Community Room.

Upgrade Hacienda Pump station including noise mitigation and building rehabilitation

Project was moved into fiscal year 2020. Project changed to include station piping improvements.

Install new Polo Ranch pump station (replacing Southwood station)

Station building is 90% completed. Will continue to work with developer to complete minor plumbing changes and bring in new PG&E electrical service

2.2 Utilize technology and other resources to realize increased operational efficiencies

2.3 Optimize the redundancy and effectiveness of the system and facilities

5.3 -6


GOALS


Complete FY 2018 financial audit by December 2018

Facilitated Finance Committee and Board involvement and participation in the audit process.

Worked with auditors to provide timely financial statements and reports as requested. Prepared and compiled CAFR for board acceptance in December 2018.

Continue a 3-year process to compile a CAFR that meets GFOA Excellence in Financial Reporting Award criteria by Dec 2020

Identified the content that is required to create a CAFR. On track to meet goal of GFOA award winning CAFR.

Adopt FY 2020 budget in June 2019 Provided budgeting information for telecommunications and board expenses (AGM). Actively supported the Finance Division in preparing and presenting a balanced budget.

Facilitated budget development process, worked with all divisions and board to produce balanced budget for Board approval in June 2019.

Actively participated in FY 2020 budget preparation in providing timely data. Developed expense budget for FY 2020 that resulted in 6.6% increase over prior year in Operations Division and 3.7% decrease in Engineering Division.

Evaluate 2-year budget cycle feasibility and practicality

Completed the evaluation with the recommendation against transitioning to a 2-year budget cycle.

Administer improvements to the online content and presentation of the financial data

Webforms project was put on hold due to cost and change of scope for the Customer Engagement portal (WaterSmart). Completed the review of all online forms and made updates to a standard format. Revised the financial information content and graphics along with the addition of quarterly financial reports to District website.

Added graphical and visual aids to quarterly financial reports that are presented to the board, also made them available for public on District website.

Collaborate in implementing AMI Utility Billing/Customer Service components

This activity was slightly delayed due to the switch to a new customer portal. Participated in evaluating the firms and testing the interface of the new portal.

See 2.2 above Took lead on this project and scheduled presentations from three AMI portal providers. Received proposals and quotes from all three. Entered into a contract with WaterSmart in January 2019. Oversaw portal implementation process which is now mostly completed.

Complete capital assets valuation and physical inventory project

Project remains underway with anticipated completion in Fall 2019.

Compile financial data necessary for the Board to determine Dec 2018 rate increase implementation (consideration of a quantifiable assessment tool for enhanced transparency and decision making)

Evaluated and considered various tools and criteria to assess the financial condition and need for rate increases.

Maintain a debt coverage ratio of 1.2 at minimum

Exceeded debt coverage ratio of 1.2 with large margin.

Build up the reserve funds with the target of $3M by the end of FY 2019

Built up the reserve funds to $3M by the end of FY 2019

Using the results of the OPEB Actuarial Study and CalPERS information, develop an approach for funding District's liabilities

Work underway to develop recommendations for board consideration for funding District long term liabilities (employee benefits).

3.1 Strive for maximum efficiency and transparency

3. Financial Stewardship: Manage District's financial resources in a responsible manner

3.2 Maintain fair, effective and legitimate rates and fees that are sufficient for meeting operating and capital needs while providing for adequate reserves

5.3 -7


GOALS


Review all Financial Policies and make a recommendation for changes/additions

Reviewed all financial policies and recommended that the Investment Policy be further assessed with potential assistance from a subject matter expert.

Establish a pilot program to launch an Instagram account intended to reach a new, younger audience and featuring District activities/projects - evaluate the success and determine further action.

Coordinated District's Instagram account launch with the goal of extending the community outreach to diverse stakeholder groups.

Upgrade and utilize compelling content on the website as a source and platform for delivering messages that are informative, educational and a source of reliable information on water issues.

Administered the process of maintaining current, relevant and creative content on District's website by reviewing and updating it regularly (at minimum, monthly).Provided content management of the relevant website pages (Recources & Information, About District, News, Calendar), bill inserts, social media and ads.

Upgraded the Finance webpage to include timely updates (Quarterly Financial Reports), improved design and readability of the Finance page, completed periodic updates to the Customer Info section to ensure accurate rate information and updated forms.

Ongoing activity of keeping information current. Engineering Tech has been working with Admin Assistant to update forms.

Provide face-to-face meeting/engaging opportunities for the the community to interact with the District (participate in 2-3 public events)

Presented at Granite Creek HOA meeting, State of the City Address hosted by Senior Life Association and SC County Business Council Board meeting. Did a live interview on My Scotts Valley Ask Series on Facebook. Coordinated 3-part Education Series for SMGWA.

WUE staff oversaw monthly tabling at 6 SV Farmers Markets and SV Art Wine Beer Festival by managing the volunteer schedules and District booth setup.

Produce a printed guide that provides a snapshot of the District.

Produced a printed guide that provides a snapshot of the District.

Participated in peer review of the printed pocket guide.

Increase Public Affairs Committee involvement by holding quarterly meetings and providing regular updates on public outreach activities.

Increased Public Affairs Committee involvement by holding quarterly meetings and providing regular updates on public outreach activities.

Convened an ad-hoc Interagency Committee that was subsequently transitioned into a standing committee. Coordinated committee meetings and utilized District's consultant to develop a public outreach strategy and action plan for growth focused topics.

4.1 Engage the community to increase visibility of District activities and advance public awareness on water matters

4. Public Outreach: Foster relationships and communications with District's stakeholders and the community

5.3 -8


GOALS


Advocate for the relevance and the importance of strategic partnership with regional water agencies on water supply resiliency

Represented the County water agencies at the RWMF Board and Steering Committee. Conducted investigative talks about potential regional water supply project opportunities.

WUE staff actively participated in SC Conservation Coalition activities: attended all meetings, served on sub-committees and outreach events; spearheaded expanded Fair Sponsorship in 2018, handling shared costs, submitted new content to shared website, provided outreach at County Fair, Earth Day, and Harvest Festival; orientated students about the Regional Student WaterWise Video Contest at SVHS, with Joel Domhoff’s ROP Video Production and Mark Andrew’s Environmental Science classes; co-presented at the Monterey Bay Friendly Rater Training for county Master Gardeners.

For the benefit of District customers, and to increase understanding, engage on statewide and local water issues by participating at ACWA committees and task forces, ACWA JPIA, Santa Cruz Regional Water Management Foundation, CUEMA and other industry-specific organizations

District was selected as the ACWA 2018 Outreach winner for Region 5.Continued active participation in ACWA JPIA and CUEMA Board of Directors.

Successfully conclude negotiations with the SVWD Employees Union resulting in mutually beneficial terms of the MOU.

Lead streamlined and smooth negotiations with the Employees Union resulting in a 4-year contract that incorporated several mutually beneficial and innovative new terms.AGM: Conducted a comprehensive compensation survey including compiling data from 20+ public utilities.

Accounting Specialist successfully lead the MOU implementation efforts. Finance Manager provided peer review and analytical work for costing and procedural components of the MOU.

Conduct review of the Employee Handbook and the policies contained in it.

Completed a review and reorganization of the Employee Handbook and employment policies.

Conduct evaluation of the Board compensation and review of the Board Best Practices.

Devised an unprecedented process for board evaluation including formulating Board Development Guidelines that were incorporated into Board Best Practices. Conducted a comprehensive board compensation survey and review of current board compensation elements.

Feature and highlight employees to the Board (in person or in written form)

Still under evaluation to determine the most effective approach.

Achieve 100% participation for each employee and Director to volunteer at a community event at least once a year

All Administration Division employees and directors participated in SV Art Wine Beer Festival or SV Farmers Market.

Achieved 100% participation in volunteering at the SV Art Wine and Beer Festival.

4 Operations staff volunteered time for the 2019 Touch a Truck event and 5 volunteered at the 2018 SVAWBF.

4.2 Identify, develop and strengthen strategic alliances, both private and public

5.1 Value and reward competence, team spirit and creativity

5. Organizational Vitality: Commit to recruiting and retaining the highest quality employees and board members

5.3 -9


GOALS


Complete 50% of the safety plans as defined in Employee Safety Program (IIPP)

Little progress made. The required training component need to compliment the training available on each subject matter.

Project postponed to FY2020.

Carry out at least 25% of the tasks in the records management action plan.

Completed the SO archives clean up by accomplishing the final 50%. Continued organization basement storage space. The Records Retention Policy is in final draft form; efforts continue on development of the subject index for a hybrid (paper/electronic) system. Progress continues on electronic files reorganization on S:/ drive particularly with the documentation of naming conventions for electronic files and folders.

Project remains underway. Made good progress, but also saving more types of files digitally so encountering new file organization challenges.

On-going. Some progress with clean up of some of the folders in the Engineering and Operations share drive sections.

Create a system for ensuring that all employees comply with mandatory training requirements

Minimal progress was made on this project. Evaluation 1 of 3 potential training and compliance solutions complete.

Organize and host at least one annual employee non-work event

Coordinated County Water Agencies Night at the SC Warriors game in November 2018. Coordinated District Holiday Party at new venue.

2 staff participated in interagency non-work event for SC water agencies.

2 Operations staff participated in interagency non-work event for SC water agencies (Warriors game)

Identify relevant opportunities for each employee and Director to attend at minimum 1 training and/or professional event annually

GM attended 2 ACWA conferences, CUEMA Leadership Summit, WateReuse CA conference, National Water Policy Fly-in and GSA Annual Summit. AGM attended CalPERLA Conference.

USR attended several Springbrook / Civicpay webinars. Accounting Specialist attended CSMFO conference and received training on various financial topics. FM attended the ACWA JPIA Leadership Program, California Financing Funding Fair, quarterly CSMFO Chapter Meetings, as well as Springbrook webinars.

2 attended SCADA Training, 2 two-day operator training class, 4 MBWWA Spring class, 1 ACWA Spring conference, 1 WateReuse conference. 4 employees passed exams and upgraded their certifications to a higher level.

Sponsor 1 employee and/or Director to participate in Leadership Santa Cruz County civic program

Director Stiles graduated Class 34 of LSCC.

Sponsored and hosted a board development training from Group to Team to the public agencies in the region: City of Scotts Valley, Scotts Valley Fire District, Santa Margarita Groundwater Agency, San Lorenzo Valley Water District, Scotts Valley Water District.

Optimize using interns for various activities and tasks that allow District to promote careers in water industry

AGM volunteered to represent the District on SV Chamber of Commerce Workforce Development Committee.Recruited high school student as summer intern in customer service and coordinated 5 high school community service volunteers (11 days/120 hours total).

Hired, trained and supervising an intern to assist with Utility Billing issues and WaterSmart implementation.

No interns involved in Operations this year.

5.3 Boost opportunities for continuous training and knowledge transfer

5.2 Cultivate productive work conditions and positive workforce culture

5.3 -10

Compensation Adjustment MatrixAt-Will Employees

Work Plan Tasks Completed

Accomplishments Base (AB)75% of Work Plan Tasks:

Equal to MOU CPI-U

Accomplishments: +/-

+4% for 100%++2% for >80%-2% for <70%-4% for <50%

Accomplishments Total (AT)

Competency AssessmentCompetencies Base (CB) Proficient: Equal to MOU CPI-U

Competencies: +/-

+1% for each exceptional,+0.5% for each highly effective; -0.5% for each

inconsistent, -1% for each unsatisfactoryCompetencies Total (CT)

Performance Total (PT) Average of AT and CT

Market Median Delta - before Performance AdjustmentMarket Median Delta - after Performance Adjustment

Market Base (MB)None if < 5% Market Median after applying Performance Adjustment

Market Adjustment:Low Performer (MA)

0% of the gap to -5% if >5% below Market Median after applying

Performance Adjustment

Market Adjustment: Proficient Performer (MA)



Market Adjustment:High Performer (MA)



Compensation Adjustment Total (PT+MA)

5.3 -11


Date: 08/08/19


Item: Business 5.4

Subject: Policy P100-17-3 Technology Resources

Reason: Complies with Administrative Code Section 2.10.050

SUMMARY Recommendation: Adopt Resolution No. 04-19, revising Policy P100-17-3 Technology

Resources.

Fiscal Impact: None

Previous Related Action: On 05/04/17 the Board adopted by resolution, Policy P100-17-3 Technology Resources.

On 06/20/19 the Board reviewed Policy P100-17-3 Technology Resources and directed staff to make several changes and return it for Board approval at a future meeting.

BACKGROUND Pursuant to District’s internal procedures, the District policies are adopted by resolution and program by motion.

DISCUSSION:

Policy P100-17-3 Technology Resources has been updated incorporating edits made by the Board at its 06/20/19 meeting.

Submitted,


Enclosed: Policy P100-17-3 Technology Resources Resolution No. 04-19

5.4 - 1

Policy Policy No.: P100-17-3 Type of Policy: Administration

Policy Title: Technology Resources

Policy:

Description: Establishes a written policy for access and use of District Technology Resources.

Adopted Date: 08/08/19 Rescinded Resolution Date: N/A

Adoption Resolution No.: 10-17 Rescinded Resolution No.: N/A

Next Review Date: 2023

It is the policy of the Board of Directors of Scotts Valley Water District:

Introduction Scotts Valley Water District (District) recognizes that access to electronic technology and communications networks, including internet and emails, is an integral part of its business function. Many tasks performed in the normal course of business require that employees use the District’s electronic technology resources and communications networks. There is not always a clear delineation between work and personal life when it comes to technology.

The following policy establishes standards that protect the District and its employees, and outlines ac-ceptable use of technology resources, taking into consideration legal responsibilities, employee privacy concerns, as well as operational needs. Compliance with this policy is essential, and violation of any aspect may result in disciplinary action up to, and including, termination.

Covered Technology This policy extends to all features of the District electronic technology, communications network, and systems, including, but not limited to, computers, file servers, email, connections to the Internet and other external networks, telephones, mobile devices, smart phones, video conferencing, text messaging, includ-ing both District provided devices and personal devices used for District business. All other forms of elec-tronic communication used by employees currently or in the future are covered.

District Provided Devices The following policies have been established for employee use of the District’s technology and communi-cations networks, including the Internet and email:

1. All technology provided by the District including computer systems, communications networks, Dis-trict-related work records and other information stored electronically, is the property of the District

5.4 - 2

Scotts Valley Water District Policy P100-17-3 Page 2 of 5

and not the employee. In general, use of the District’s technology systems and electronic communica-tions should be job-related and not for personal convenience.

2. Employees may not use the District’s Internet, email or other electronic communications to transmit, retrieve or store any communications or other content of a defamatory, discriminatory, harassing or pornographic nature. No messages with derogatory or inflammatory remarks about an individual’s race, age, disability, religion, national origin, physical attributes or sexual preference may be transmit-ted. Harassment of any kind is prohibited.

3. Disparaging, abusive, profane or offensive language; materials that might adversely or negatively re-flect on the District or be contrary to its legitimate business interests; and any illegal activities includ-ing piracy, software cracking, extortion, blackmail, copyright infringement and unauthorized access to any computers on the Internet or email are forbidden.

4. Copyrighted materials belonging to entities other than the District may not be transmitted by employ-ees on the District’s network without permission of the copyright holder. Employees must respect all copyrights and may not copy, retrieve, modify or forward copyrighted materials, except with permis-sion or as a single copy for reference only. Saving copyright-protected information to a network drive without permission is prohibited. Sharing the URL (uniform resource locator or “address”) of an inter-net site with other interested persons for business reasons is permitted.

5. Employees may not use the system in a way that disrupts its use by others. This includes sending or receiving excessive numbers of large files and “spamming” (sending email to thousands of users.)

6. To prevent contamination of the District technology and communications equipment and systems by harmful malware and computer viruses, only open email attachments from senders that you knows or that you are expecting the email attachment. Viruses can be disguised as attachments of funny images, greeting cards, or audio and video files. Malware and computer viruses can be also spread through downloads from the internet. Files from unknown sources should be not be downloaded.

7. Employees are responsible for the content of all text, audio or image files sent over the District’s in-ternet and email systems. No email or other electronic communications may be sent that hide the identity of the sender or represent the sender as someone else.

8. Email and other electronic communications transmitted by the District equipment, systems and net-works are not private or confidential, and are the property of the District. The District reserves the right to examine, monitor and regulate email and other electronic communications, directories, files and all other content, including Internet use, transmitted by or stored in its technology systems, whether onsite or offsite.

9. Internal and external email, voice mail, and text messages are considered business records and may be subject to discovery in the event of litigation. Employees must be aware of this possibility when communicating electronically within and outside the District.

5.4 - 3


Security An important security feature that protects District electronic data communication is the use of pass-words. Employee passwords are used for security purposes and do not affect District ownership of the electronic information. Passwords are intended to protect information from those that do not have access to such information. All passwords created by or issued to the user should not be shared, given, or other-wise disclosed to any other person.

District employees will:

1. Take every effort to protect District issued devices from theft, damage, abuse and unauthorized use. 2. Immediately report if a device is stolen, lost or damaged. 3. Take appropriate measures to safeguard District data when using district or personal mobile devices. 4. Not download any software or applications without prior authorization.

Software Usage The District purchases and licenses the use of various computer software for business purposes and does not own the copyright to this software or its related documentation. Unless authorized by the software developer, District does not have the right to reproduce such software for use on more than one com-puter. As such, employees may only use software on local area networks or on multiple machines accord-ing to the software license agreement. The District prohibits the illegal duplication of software and its related documentation.

Access of Another Person’s Electronic Communications Employees may not intercept, record, read, alter, retrieve, receive, send, or use another person’s elec-tronic communications and/or storage unless designated by management to serve as a proxy, as discussed below.

Email Retention The District retains emails on the server for a period of time. The content of some email messages could be classified as a record pursuant to the guidelines established by management consistent with District Records Retention Policy

E-Signatures The District uses DocuSign for electronic-signatures. Documents are encrypted and an audit trail is main-tained.

Internet Usage Internet access is provided to employees for the benefit of the District. Employees are representing the District and are responsible for internet use in an effective, ethical, and lawful manner. Each employee is responsible for the content of all text, audio, or images that they place or send over the Internet. Fraud-ulent, harassing, or obscene messages are prohibited. All messages communicated over the Internet should have your name attached, unless authorized as a proxy. No messages should be transmitted under an assumed name.

5.4 - 4


Telephones/Mobile Devices The District telephone system is vital to operations, whether a desk phone, soft phone or mobile device. District telephones may be used for necessary personal calls; however, employees are not to use them to call 1-900 or directory assistance calls.

Personal Use of District Mobile Devices

The District provides electronic communications devices (e.g., cell phones, iPads, laptops) to its employ-ees, based on an identified need of conducting business. They are subject to the following:

• Employees should ensure that personal use of these items does not interfere with District business or the productivity (personal use should take place during breaks and/or lunch).

• Personal use may not involve any prohibited activity described in this Policy.

• Personal use may not disrupt or delay the performance of District business.

• Personal use must not be for personal gain or commercial ventures.

• Personal use may not support or advocate non-District related business purposes.

• Incidental personal data (such as personal calendars, personal address lists, and similar incidental per-sonal data) may be prepared and stored in a reasonable manner, provided such use does not conflict with any purpose or need of the District.

• Necessary personal communications may be sent and received through email, as long as such activity does not interfere with productivity or jeopardize the security of District data or systems.

Remote Access to the District Network and Related Systems

Remote access to the District’s network servers or web-based applications, whether through a virtual network or other means will be authorized by the General Manager.

• All rules that apply to the working of overtime and the consequences of working unauthorized over-time apply in the context of working remotely.

• Non-exempt employees should not access the network outside of regularly scheduled work hours, unless such remote access meets a legitimate business need and has been previously approved by the employee’s immediate supervisor.

• Users shall not download or transfer sensitive business data to their personal devices, which is defined as documents or data whose loss, misuse, or unauthorized access can adversely affect the privacy or welfare of an individual (personally identifiable information), proprietary information, or District fi-nancial operations.

• Personal devices used to access the District network remotely will be password protected and appro-priate measures to safeguard District data will be taken.

• Employee agrees to delete any sensitive business files that may be inadvertently downloaded and stored on a personal device through the process of viewing email attachments.

5.4 - 5


Mobile Device Stipend Plan Employee’s using their personal mobile device to conduct District business will receive a mobile device stipend.

Employees utilizing their personal mobile devices will be responsible for costs, maintenance and support of their personal mobile device.

The District cannot and does not imply, extend, or guarantee any right to privacy for work-related voice calls and/or electronic communications placed. The District does not remotely monitor or remotely access any information contained on the employee’s personally owned mobile device. However, employees acknowledge that all District work products generated or stored on any personally owned device is po-tentially subject to disclosure through subpoena or other legal recourse. The employee acknowledges that any such request could require the employee to search their personal device and disclose any and all District work products, including but not limited to, call detail records, logs, voice mail messages, data storage, text messages, emails, and address books when utilized for the purpose of conducting District business.

District Website The svwd.org website represents a fundamental communication tool for providing information and is for official use only. The District maintains responsibility for website content and postings. Further infor-mation can be found in the website guidelines.

Social Networking The District uses social networks such as Facebook and NextDoor as forms of public communication. The General Manager or his/her authorized designee may post District related material to social media sites.

Additionally, all employees have an obligation to ensure that any public electronic communication they make, including social networking communications, does not negatively impact the reputation of District. Engaging in social networking during the workday can negatively impact productivity and work perfor-mance. It is the employee’s responsibility to regulate his/her social networking so that it does not impact productivity or cause performance issues.

5.4 - 6

RESOLUTION No. 04-19

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SCOTTS VALLEY WATER DISTRICT

REVISING POLICY P100-17-3 TECHNOLOGY RESOURCES AND RESCINDING RESOLUTION No. 10-17

WHEREAS: 1. Scotts Valley Water District has several documents that govern employer–employee

relations: Memorandum of Understanding (MOU) between the Scotts Valley Water District (SVWD) and SVWD Employees Union, SVWD Employee Handbook and employment policies;

2. Scotts Valley Water District Employee Handbook provides specific information toemployees on District employment, policies, and practices that are not subject tonegotiation with the Employee Union;

3. Section IV of the Employee Handbook contains Employment Policies that provide specific information to District employees on appropriate conduct;

4. Policy P100-17-3 Technology Resources clearly sets standards that protect both District and employees and outlines acceptable use of technology resources;

THEREFORE BE IT RESOLVED by the Board of Directors of the Scotts Valley Water District that it hereby:

1. Revises Policy P100-17-3 Technology Resources, effective immediately;

2. Rescinds Resolution No. 10-17 in its entirety.

PASSED AND ADOPTED on this 8th day of August 2019, by the following vote:

AYES: . NOES: . ABSENT: .

________________________________ Danny Reber, President Board of Directors

Attest: _____________________________ Piret Harmon, General Manager

5.4 - 7

STAFF REPORT - Finance Scotts Valley Water District

Date: 08/08/19


From: General Manager

Item: Staff Reports 6.3

Subject: Preliminary Financial Reports 07/01/18 through 06/30/19

Summary Fiscal Year-to-Date (YTD) preliminary figures reflect the period of 07/01/18 through 06/30/19. YTD revenues total $7.8 M and expenses total $6.1 M.

Revenue June is the twelfth month of the fiscal year and the second month of the May-June potable water billing period. Preliminary YTD potable water sales revenue is $3.6 M, water services “Ready to Serve” revenue is $1.9 M and new connections revenue is $0.6 M. Total YTD revenue in the potable water fund is $7.1 M, equal to 95% of the budget and 4% higher than last fiscal year.

YTD recycled water sales revenue is $0.4 M, water services revenue is $29 K, and new connections revenue is $6 K. Total YTD revenue of $0.65 M in the recycled water fund equals 67% of the budget, which is 3% lower than last fiscal year.

Expenses Preliminary combined operating expenses for the fiscal year are slightly below budget, with expenses of $5.2 M representing 95% of the budget. Project expenditures total $0.9 M and the debt service principal payment has been made.

Fund Balance Cash reserves at the end of June were approximately $2.9 M with another $1.4 M booked in Accounts Receivable.

Enclosures Quarterly Financial Report – Q4 of FY 2019 Budget Status Balance 07/01/18 – 06/30/19 Budget Status Revenue 07/01/18 – 06/30/19 Budget Status Expense 07/01/18 – 06/30/19 Projects Expense 07/01/18 – 06/30/19 Balance Sheet as of 06/30/19 Check Register 06/01/19 – 06/30/19 Investment Summary – 06/30/19

6.3 - 1

FY 2019 – Q4 Financial Report July 1, 2018 – June 30, 2019

Revenue Scotts Valley Water District revenues come from four main sources: Water Sales, Water Services (Ready-to-Serve), New Connections, and Non-Operating*.

The District’s largest revenue category is Single Family Residential (SFR) Water Sales. Revenue from SFR Water Sales for the period of July 2018 through June 2019 is up 2% from the same period in the prior year. This increase in revenue is the result of water rate increases, offset by declining consumption in this category. Consumption Water consumption by SFR customers from the beginning of the fiscal year through the fourth quarter is down 5.8% to 203 million gallons from 216 million gallons in FY 2018. Total water consumption in the District across all categories is 5.7% lower.

Single Family Residential (SFR) 27%

Multi-Family Residential (MFR) 2%

Commercial & Industrial (CII) 14%

Landscape 10%

Other / Bulk Water 0%

Water Services 23%

New Connections 8%

Non-Operating 16%

Water Sales

*Data from the FY 2019 Budget

195

200

205

210

215

220

Single-Family Residential (SFR)

Milli

on G

allo

ns

Consumption 3 Year History : SFR (July through June)

2017 2018 2019

0

50

100

Multi-Family Residential(MFR)

Commercial & Industrial(CII)

Landscape - Potable Landscape - RecycledMilli

on G

allo

ns

Consumption 3 Year History : MFR, CII, Landscape(July through June)

2017 2018 2019

6.3 - 2

Expenses District expenses are comprised of three major categories: Operating Expenses, Project Expenses, and Debt Service. The chart below breaks down Operating Expenses by Division*.

The District’s operations – providing service to ensure that high quality water is supplied consistently across the district throughout the year – is the organization’s largest expense category. District operating expenses through Q4 of FY 2019, which accounts for activity from July 2018 through June 2019, are below budget. Total operating expenses in FY 2019 exceed the FY 2018 total by 8%. The chart below compares Operating Expenditures by Division for each of the past three fiscal years.

Administration 15%

Finance / Customer Service

8%

Operations 33%

Engineering & WUE 5%

Board of Directors 2%

Project Expenses31%

Debt Service6%

Operating Expenses

*Data from the FY 2019 Budget

$. M$.5 M$1. M

$1.5 M$2. M

$2.5 M$3. M

$3.5 M

Administration Finance / CustomerService

Operations Engineering & WUE Board of Directors

Operating Expenses 3 Year History by Division(July through June)

FY 2017 FY 2018 FY 2019

6.3 - 3

** PRELIMINARY REPORTS **

Budget Status - Balance

Period: 07/01/18 - 06/30/19 0%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change

FY 2019 Budget

FY 2019 Remaining

Balance %

Period: 07/01/18 - 06/30/19 (12 months)

Potable Water - Fund 01Water Sales & Services (R10, R20) 5,161,598$ 5,530,592$ 368,994$ 7% 5,939,385$ 408,793$ 7%New Connections (R25) 608,961$ 613,588$ 4,627$ 1% 667,047$ 53,459$ 8%Other Revenue (R30, R40) 1,071,544$ 993,071$ (78,473)$ -7% 936,268$ (56,803)$ -6%Potable Water Total 6,842,103$ 7,137,251$ 295,148$ 4% 7,542,700$ 405,449$ 5%

Recycled Water - Fund 02Water Sales & Services (R10, R20) 471,601$ 476,163$ 4,562$ 1% 533,677$ 57,514$ 11%New Connections (R25) 27,461$ 6,396$ (21,065)$ n/a 11,896$ 5,500$ 46%Other Revenue (R30, R40) 172,769$ 171,128$ (1,642)$ n/a 428,217$ 257,089$ 60%Recycled Water Total 671,831$ 653,687$ (18,145)$ -3% 973,790$ 320,103$ 33%

TOTAL REVENUE 7,513,935$ 7,790,938$ 277,003$ 4% 8,516,490$ 725,552$ 9%

Expenses - Fund 01 and Fund 02 CombinedSalaries & Benefits (E01) 2,528,725$ 2,727,268$ 198,543$ 8% 2,753,386$ 26,118$ 1%Services & Supplies (E03-E80) 2,305,519$ 2,510,445$ 204,925$ 9% 2,808,889$ 298,444$ 11%Project Expenses 2,456,507$ 932,681$ (1,523,826)$ -62% 2,770,000$ 1,837,319$ 66%Debt Service - Principal 452,927$ 460,030$ 7,103$ 2% 460,030$ -$ 0%TOTAL EXPENSES * 7,743,679$ 6,630,424$ (1,113,255)$ -14% 8,792,305$ 2,161,881$ 25%

NET REVENUE (229,744)$ 1,160,514$ 1,390,258$ -605% (275,815)$ (1,436,329)$ 521%

Period: 07/01/18 - 06/30/19 (12 months)Total Revenue 7,513,935$ 7,790,938$ 277,003$ 4% 8,516,490$ 725,552$ 9%Total Expenses * 7,743,679$ 6,630,424$ (1,113,255)$ -14% 8,792,305$ 2,161,881$ 25%

Net Revenue (229,744)$ 1,160,514$ 1,390,258$ -605% (275,815)$ 0%

Period: 07/01/18 - 05/31/19 (11 months)Total Revenue 6,624,539$ 6,906,475$ 281,936$ 4% 8,516,490$ 1,610,015$ 19%Total Expenses * 6,855,235$ 5,571,035$ (1,284,200)$ -19% 8,792,305$ 3,221,270$ 37%

Net Revenue (230,697)$ 1,335,439$ 1,566,136$ -679% (275,815)$ 0%

* Expense totals do not include depreciation expense

FY Remain:

6.3 - 4


Period: 07/01/18 - 06/30/19 0%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change FY 2019 Budget

FY 2019 Remaining

Balance %

Fund 01 Potable Water

R10 Operating Revenue - Water Sales01-000-41101 Residential Consumption - SF 1,941,410$ 1,976,454$ 35,044$ 2% 2,300,863$ 324,409$ 14%01-000-41102 Residential Consumption - MF 134,510$ 154,190$ 19,680$ 15% 154,315$ 125$ 0%01-000-41103 CII Consumption - Commercial 976,818$ 1,078,656$ 101,838$ 10% 1,219,011$ 140,355$ 12%01-000-41106 CII Consumption - Other 83,826$ 96,826$ 13,000$ 16% -$ (96,826)$ 01-000-41105 Irrigation Consumption 331,427$ 266,317$ (65,110)$ -20% 347,376$ 81,059$ 23%01-000-41200 Other - Bulk Water 10,128$ 36,747$ 26,619$ 263% 16,000$ (20,747)$ -130%

R10 Sub Totals: 3,478,118$ 3,609,190$ 131,071$ 4% 4,037,565$ 428,375$ 11%

R20 Operating Revenue - Water Services01-000-41300 Other - Late Penalty 26,580$ 26,520$ (60)$ 0% 34,120$ 7,600$ 22%01-000-42100 Standby Basic Meter Charge 1,601,872$ 1,831,874$ 230,002$ 14% 1,808,047$ (23,827)$ -1%01-000-42121 Standby FP Basic Meter Charge 43,753$ 51,159$ 7,406$ 17% 48,653$ (2,506)$ -5%01-000-43300 Other Operating Revenue 11,275$ 11,850$ 575$ 5% 11,000$ (850)$ -8%

R20 Sub Totals: 1,683,480$ 1,921,403$ 237,923$ 14% 1,901,820$ (19,583)$ -1%

R25 Operating Revenue - New Connections01-000-42101 Other Meter Fee 5,228$ 9,505$ 4,277$ 82% 10,535$ 1,030$ 10%01-000-42102 Other Capacity Fee 595,696$ 597,298$ 1,602$ 0% 650,102$ 52,804$ 8%01-000-42120 Other FP Meter Fee 2,569$ 4,940$ 2,371$ 92% 410$ (4,530)$ -1105%01-000-43100 Other Will Serve 500$ 500$ -$ 0% 1,000$ 500$ 50%01-000-43200 Other Dev Proj Review 4,968$ 1,345$ (3,623)$ -73% 5,000$ 3,655$ 73%

R25 Sub Totals: 608,961$ 613,588$ 4,627$ 1% 667,047$ 53,459$ 8%

R30 Non-Operating Revenue - Other01-000-46000 Property Taxes 923,894$ 925,261$ 1,367$ 0% 869,268$ (55,993)$ -6%01-000-47110 Interest & Dividend 7,834$ 5,080$ (2,755)$ -35% 7,000$ 1,920$ 27%01-000-47120 Interest - LAIF 9,117$ 7,452$ (1,665)$ -18% 8,000$ 548$ 7%01-000-47520 Misc. Non-Operating Revenue 135,487$ 50,635$ (84,853)$ -63% 2,000$ (48,635)$ -2432%01-000-47530 Unrealized Gain/Loss on Invest (5,508)$ 3,924$ 9,432$ -171% -$ (3,924)$ 01-000-47540 Third-Party Reimbursements -$ 50,000$ 50,000$ 100%

R30 Sub Totals: 1,070,824$ 992,351$ (78,473)$ -7% 936,268$ (56,083)$ -6%

R40 Non-Operating Revenue - Grants01-000-45260 Local Grant - ACWA JPIA 720$ 720$ -$ 0% -$ (720)$

R40 Sub Totals: 720$ 720$ -$ 0% -$ (720)$

Fund 01 Revenue: 6,842,103$ 7,137,251$ 295,148$ 4% 7,542,700$ 405,449$ 5%Fund 01 Rev Excl Grants & Cap Contributions

6,841,383$ 7,136,531$ 295,148$ 4% 7,542,700$ 406,169$ 5%

Budget Status - Revenue

FY Remain:

6.3 - 5


Period: 07/01/18 - 06/30/19 0%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change FY 2019 Budget

FY 2019 Remaining

Balance %

Budget Status - Revenue

FY Remain:

Fund 02 Recycled Water

R10 Operating Revenue - Water Sales02-000-41105 Irrigation Consumption 438,525$ 428,379$ (10,146)$ -2% 476,216$ 47,837$ 10%02-000-41200 Other - Bulk Water 16,549$ 18,534$ 1,985$ 12% 28,000$ 9,466$ 34%

R10 Sub Totals: 455,073$ 446,912$ (8,161)$ -2% 504,216$ 57,304$ 11%

R20 Operating Revenue - Water Services02-000-42100 Standby Basic Meter Charge 16,453$ 29,126$ 12,673$ 77% 29,461$ 335$ 1%02-000-43300 Other Operating Revenue 75$ 125$ 50$ 67% -$ (125)$

R20 Sub Totals: 16,528$ 29,251$ 12,723$ 77% 29,461$ 210$ 1%

R25 Operating Revenue - New Connections02-000-42101 Other Meter Fee 696$ 448$ (248)$ 64% -$ (448)$ 02-000-42102 Other Capacity Fee 26,765$ 5,948$ (20,817)$ -78% 11,896$ 5,948$ 50%

R25 Sub Totals: 27,461$ 6,396$ (21,065)$ -77% 11,896$ 5,500$ 46%

R30 Non-Operating Revenue - Other02-000-47110 Interest & Dividend 11,130$ 9,489$ (1,642)$ -15% 9,578$ 89$ 1%02-000-47540 Third Party Reimbursements -$ 257,000$ 257,000$ 100%02-000-47560 Reduction of RW Entitlement 161,639$ 161,639$ -$ 0% 161,639$ -$ 0%

R30 Sub Totals: 172,769$ 171,128$ (1,642)$ -1% 428,217$ 257,089$ 60%

Fund 02 Revenue: 671,831$ 653,687$ (18,145)$ -3% 973,790$ 320,103$ 33%Fund 02 Rev Excl Grants & Cap Contributions

671,831$ 653,687$ (18,145)$ -3% 973,790$ 320,103$ 33%

Revenue Totals: 7,513,935$ 7,790,938$ 277,003$ 4% 8,516,490$ 725,552$ 9%Revenue Total Excl Grants & Cap Contributions 7,513,215$ 7,790,218$ 277,003$ 4% 8,516,490$ 726,272$ 9%

6.3 - 6


Period: 07/01/18 - 06/30/19 0%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change

FY 2019 Budget

FY 2019 Remaining

Balance %

Fund 01 and Fund 02 Combined

Dept AdministrationE01 Salaries & Benefits 448,088$ 519,043$ 70,955$ 16% 516,744$ (2,299)$ 0%E03 General & Admin - Services 279,808$ 315,261$ 35,453$ 13% 322,646$ 7,385$ 2%E05 General & Admin - Supplies 21,008$ 19,108$ (1,900)$ -9% 15,100$ (4,008)$ -27%E10 Source of Supply 95,000$ 291,937$ 196,937$ 207% 498,341$ 206,404$ 41%

Dept 100 Sub Totals: 843,905$ 1,145,349$ 301,444$ 36% 1,352,831$ 207,482$ 15%

Dept Finance/Customer ServiceE01 Salaries & Benefits 340,877$ 400,568$ 59,692$ 18% 393,680$ (6,888)$ -2%E03 General & Admin - Services 181,519$ 107,538$ (73,981)$ -41% 185,300$ 77,762$ 42%E05 General & Admin - Supplies 3,000$ 3,011$ 11$ 0% 3,000$ (11)$ 0%E35 Customer Accounts 82,162$ 110,500$ 28,339$ 34% 94,120$ (16,380)$ -17%E70 Other 975$ 1,278$ 303$ 31% 1,000$ (278)$ -28%E80 Debt Service - Interest 103,584$ 94,956$ (8,628)$ -8% 99,282$ 4,326$ 4%

Dept 200 Sub Totals: 712,116$ 717,852$ 5,736$ 1% 776,382$ 58,530$ 8%

Dept OperationsE01 Salaries & Benefits 1,448,020$ 1,508,387$ 60,367$ 4% 1,505,172$ (3,215)$ 0%E03 General & Admin - Services 152,210$ 144,686$ (7,524)$ -5% 186,770$ 42,084$ 23%E05 General & Admin - Supplies 35,199$ 37,297$ 2,097$ 6% 30,500$ (6,797)$ -22%E07 General Production 81,628$ 84,575$ 2,947$ 4% 84,000$ (575)$ -1%E10 Source of Supply 121,858$ 100,171$ (21,687)$ -18% 80,000$ (20,171)$ -25%E15 Pumping 442,506$ 393,393$ (49,113)$ -11% 366,000$ (27,393)$ -7%E20 Water Treatment 434,301$ 335,277$ (99,023)$ -23% 439,750$ 104,473$ 24%E25 Transmission & Distribution 45,187$ 124,794$ 79,607$ 176% 131,000$ 6,206$ 5%E35 Conservation 1,313$ -$ (1,313)$ -100% 2,000$ 2,000$ 100%E70 Other 108,218$ 235,856$ 127,638$ 118% -$ (235,856)$

Dept 300 Sub Totals: $ 2,870,440 2,964,435$ 93,995$ 3% 2,825,192$ (139,243)$ -5%

Dept EngineeringE01 Salaries & Benefits 77,125$ 79,546$ 2,422$ 3% 94,766$ 15,220$ 16%E03 General & Admin - Services 35,943$ 52,545$ 16,602$ 46% 97,430$ 44,885$ 46%E05 General & Admin - Supplies 15$ 120$ 105$ 700% 1,000$ 880$ 88%

Dept 400 Sub Totals: 113,082$ 132,211$ 19,128$ 17% 193,196$ 60,985$ 32%

Dept WUE/ConservationE01 Salaries & Benefits 98,715$ 102,471$ 3,756$ 4% 112,455$ 9,984$ 9%E03 General & Admin - Services 11,793$ 5,283$ (6,510)$ -55% 38,500$ 33,217$ 86%E05 General & Admin - Supplies 53,827$ 30,985$ (22,841)$ -42% 56,500$ 25,515$ 45%

Dept 500 Sub Totals: $ 164,335 138,739$ (25,596)$ -16% 207,455$ 68,716$ 33%

Dept Board of DirectorsE01 Salaries & Benefits 115,900$ 117,253$ 1,352$ 1% 130,569$ 13,316$ 10%E03 General & Admin - Services 12,836$ 21,699$ 8,864$ 69% 16,400$ (5,299)$ -32%E05 General & Admin - Supplies 1,630$ 175$ (1,455)$ -89% 250$ 75$ 30%

Dept 900 Sub Totals: 130,366$ 139,127$ 8,761$ 7% 147,219$ 8,092$ 5%

Budget Status - Expense

FY Remain:

6.3 - 7


Period: 07/01/18 - 06/30/19 0%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change

FY 2019 Budget

FY 2019 Remaining

Balance %

Budget Status - Expense

FY Remain:

SummaryE01 Salaries & Benefits 2,528,725$ 2,727,268$ 198,543$ 8% 2,753,386$ 26,118$ 1%E03 General & Admin - Services 674,108$ 647,011$ (27,097)$ -4% 847,046$ 200,035$ 24%E05 General & Admin - Supplies 114,679$ 90,696$ (23,983)$ -21% 106,350$ 15,654$ 15%E07 General Production 81,628$ 84,575$ 2,947$ 4% 84,000$ (575)$ -1%E10 Source of Supply 216,858$ 392,108$ 175,250$ 81% 578,341$ 186,233$ 32%E15 Pumping 442,506$ 393,393$ (49,113)$ -11% 366,000$ (27,393)$ -7%E20 Water Treatment 434,301$ 335,277$ (99,023)$ -23% 439,750$ 104,473$ 24%E30 Conservation 1,313$ -$ (1,313)$ -100% 2,000$ 2,000$ 100%E25 Transmission & Distribution 45,187$ 124,794$ 79,607$ 176% 131,000$ 6,206$ 5%E35 Customer Accounts 83,137$ 110,500$ 27,364$ 33% 95,120$ (16,659)$ -18%E70 Other 108,218$ 237,134$ 128,916$ 119% -$ (235,856)$ E80 Debt Service - Interest 103,584$ 94,956$ (8,628)$ -8% 99,282$ 4,326$ 4%

Purchase Order Carryover 60,000$ District Expense Total: 4,834,245$ 5,237,713$ 403,468$ 8% 5,562,275$ 264,562$ 5%

Fund 01 and 02 CombinedE01 Salaries & Benefits 2,528,725$ 2,727,268$ 198,543$ 8% 2,753,386$ 26,118$ 1%E03-E80 Services & Supplies 2,305,519$ 2,510,445$ 204,925$ 9% 2,748,889$ 238,444$ 9%

Purchase Order Carryover 60,000$ District Expense Total: 4,834,245$ 5,237,713$ 403,468$ 8% 5,562,275$ 264,562$ 5%

6.3 - 8


Period: 07/01/18 - 06/30/19 0%

FY 2019YTD Actual

FY 2019 Budget

FY 2019 Remaining

Balance %


Project DescriptionC15009 Transit Center LID Project -$ -$ -$ C15016 Accounting & UB S/W Replacement 13,100$ 20,000$ 6,900$ 35%C15021 Groundwater Recharge w/ Recycled Water 1,319$ 300,000$ 298,681$ 100%C15020 El Pueblo Pumps Reconfiguration -$ -$ -$ M16022 Recycled Water Fill Station -$ 8,000$ 8,000$ 100%C16023 Orchard Run WTP Water Quality Improvement 81,338$ 500,000$ 418,662$ 84%C16024 Bethany Tank Rehabilitation 39,685$ 200,000$ 160,315$ 80%M17011 Meters with AMI 131,711$ 120,000$ (11,711)$ -10%C17011 AMI Technology for Meters 167,623$ 150,000$ (17,623)$ -12%C17018 Specialized Operations Vehicle 18,632$ 50,000$ 31,368$ 63%C17025 Main Replacement Program - RW 164,119$ -$ (164,119)$ C18026 Main Replacement Program - PW -$ 75,000$ 75,000$ 100%C18028 Well 11B 150$ -$ (150)$ C18031 Bethany Pump Station Rehab -$ -$ -$ C18032 Well 7A Replacement 83,853$ -$ (83,853)$ C18033 Polo Ranch Pump Station Improvements 8,349$ 20,000$ 11,651$ 58%C18034 Pressure Regulator - Northridge 32,471$ 45,000$ 12,529$ 28%C18035 Sequoia Tank Rehabilitation 44,435$ 650,000$ 605,565$ 93%C19010 Recycled Water Main - Hwy 17 Crossing 24,590$ 257,000$ 232,410$ 90%C19020 El Pueblo WTP Improvements 4,486$ 150,000$ 145,514$ 97%C19030 Hacienda Pump Station Improvements -$ 60,000$ 60,000$ 100%C19050 Pressure Regulator - Granite Creek 5,280$ 100,000$ 94,720$ 95%C19060 AV System Upgrade 20,608$ 30,000$ 9,392$ 31%C19070 FY19 Vehicle Replacement Program 90,932$ 35,000$ (55,932)$ -160%

Projects Expense Totals: 932,681$ 2,770,000$ 1,837,319$ 66%

* Scheduled project in the District's Capital Improvement Plan

Projects - Expense

FY Remain:

6.3 - 9


Balance Sheet


6/30/18 6/30/19

$1,185,547 $2,981,853Investment $308,645 $0

$7,508 $3,002$1,314,663 $1,353,694

$220,898 $249,961$293,413 $368,440$211,827 $211,827$146,303 $68,429$392,431 $230,792$650,697 $650,697

$2,707,447 $1,015,160$5,267,833 $5,267,833

$35,874,108 $37,471,983($21,193,173) ($21,672,284)

$36,171 $36,171$456,821 $656,179

$27,935,968 $28,893,736

$364,611 $120,988$80,885 $75,968$51,769 ($0)$63,000 $56,200

$293,413 $368,440$25,862 $25,862$35,311 $73,896

$8,169,881 $10,168,744$212,630 $183,523

$9,297,362 $11,073,620

$14,790,579 $16,700,288$1,332,995 ($1,338,284)

$16,123,574 $15,362,004

$25,420,936 $26,435,624

$2,515,032 $2,458,112

$18,638,606 $17,820,116

$27,935,968 $28,893,736

Total Liabilities and Fund Balance:

Total Retained Earnings:

AssetsCash

Accrued Interest

Interfund Loan Receivable

Prepaid Expense

Liabilities

Unearned Revenue

Plant & Equipment

Construction-in-progress

Note Receivable

Interfund Loans

Water Rights / Intangible Assets

A/R Customer-WaterA/R - Other

Inventory

Land & Right-of-ways

Depreciation/AmortizationLoss on Defeasance of DebtDeferred Pension Outflows

Unrestricted Net Position

Fund Balance

LT Liabilities Due in 1 Yr

A/P & Accrued Expenses

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 - 10

Scotts Valley Water DistrictAP Check RegisterJune 2019

Vendor Name Check Date Check No. Check Amount DescriptionACCELA INC. 6/13/2019 27687 2,127.00$ Web Payment Transaction Fees - May 2019ACWA/JPIA 6/13/2019 27688 38,192.93$ EE & Retiree Benefits - Jul 2019AFLAC 6/13/2019 27689 421.34$ EE Self-Funded Supplemental Benefits - May 2019AFLAC 6/28/2019 27740 421.34$ EE Self-Funded Supplemental Benefits - Jun 2019AFSCME COUNCIL 57 6/28/2019 27741 607.74$ Union Dues - Jun 2019ARMSTRONG SANDRA 6/28/2019 27742 341.00$ Customer Rebate - Lawn ReplacementARRANGED 4 COMFORT 6/28/2019 27743 2,672.73$ Ergonomic Office SuppliesARRANGED 4 COMFORT 6/28/2019 27743 480.00$ Ergonomic Office InstallationBADGER METER 6/13/2019 27690 2,175.16$ Monthly Cell Charge for PW Meter Reads - May 2019BADGER METER 6/13/2019 27690 55.18$ Monthly Cell Charge for RW Meter Reads - May 2019BARGETTO SHARON 6/28/2019 27744 25.00$ Customer Rebate - ToiletBARTLE BENNIE 6/13/2019 27691 25.00$ Customer Rebate - ToiletBECK'S SERVICE 6/28/2019 27745 1,153.00$ Vehicle Maint - Install Light Bar & RadioBRASS KEY LOCKSMITH 6/28/2019 27746 82.85$ OPS Supplies - Key & Key RingBRENNTAG PACIFIC INC 6/13/2019 27692 2,759.30$ Water Treatment ChemicalsCANNON-SCOTT RYAN 6/28/2019 27747 7.01$ UB Refund Check - 011635-000CENTRAL HOME SUPPLY 6/13/2019 27693 15.81$ Service Line Leak Repair SuppliesCHESTNUT IDENTITY APPAREL 6/28/2019 27748 521.02$ Hats w/ District LogosCITY OF SANTA CRUZ FINANCE DEPT 6/13/2019 27694 315.55$ Water Smart Gardening Website Licensing & MaintCITY OF SANTA CRUZ FINANCE DEPT 6/28/2019 27749 1,995.00$ Stream Habitat & Juvenile Salmonid Monitoring - FY2019CITY OF SCOTTS VALLEY 6/13/2019 27695 32,300.72$ Tertiary Treatment Plant Expenses - Q2 FY2019CIVIL CONSULTANTS GROUP INC 6/13/2019 27696 1,290.00$ SA-148 Plan ReviewCIVIL CONSULTANTS GROUP INC 6/13/2019 27696 480.00$ General Engineering ServicesCIVIL CONSULTANTS GROUP INC 6/13/2019 27696 645.00$ SA-153 Plan ReviewCIVIL CONSULTANTS GROUP INC 6/28/2019 27750 955.00$ Sequioa Tank Rehab - General EngineeringCOUNTY OF SANTA CRUZ 6/28/2019 27751 165.00$ Stream Habitat & Steelhead Monitoring - FY2019COUNTY OF SANTA CRUZ 6/13/2019 27697 56.61$ Landfill Waste - Apr-May 2019DASSELS PETROLEUM 6/13/2019 27698 1,142.53$ Vehicle Fuel - May 2019DREISKE ERWIN 6/13/2019 27699 50.00$ Customer Rebate - Pressure RegulatorEUROFINS EATON ANALYTICAL 6/28/2019 27752 2,240.00$ Lab Testing for Water QualityFASTENAL COMPANY 6/28/2019 27753 137.70$ Misc OPS SuppliesGALYARDT DAVID 6/13/2019 27701 100.00$ Customer Rebate - ToiletGRAINGER 6/13/2019 27702 91.52$ Small Tools - Tubing CutterGRAINGER 6/28/2019 27754 339.76$ Solar Supplies - Mt Roberta TankGRAINGER 6/28/2019 27754 747.71$ Solar Panels - Mt Roberta TankGRAINGER 6/28/2019 27754 297.30$ Small Tools - Truck Mounted ViseGRAINGER 6/28/2019 27754 140.61$ OPS Supplies - Grainger MembershipGREEN WASTE RECOVERY INC 6/13/2019 27703 235.05$ Monthly Trash Service - El Pueblo - May 2019HAIGHT ROBERT 6/28/2019 27755 494.36$ Retiree Medical - Jun 2019HINES MICHAEL BRADLEY 6/13/2019 27704 2,100.00$ Facility Maint - Coating & Painting Well 10 PipesICONIX WATERWORKS (US) INC 6/13/2019 27705 766.02$ Service Line Maint - StockICONIX WATERWORKS (US) INC 6/13/2019 27705 667.72$ Orchard Run WTP Backwash Tank - Pipes & FittingsICONIX WATERWORKS (US) INC 6/28/2019 27756 294.67$ Well Supplies - Flanged SpoolICONIX WATERWORKS (US) INC 6/28/2019 27756 436.89$ Treatment Plant Supplies - Gaskets, Flanges, Grooved FittingsINDEPENDENT ELECTRIC SUPPLY 6/13/2019 27706 470.69$ Light Bulbs - El Pueblo WTP Analyzer Room LightsINDEPENDENT ELECTRIC SUPPLY 6/13/2019 27706 138.15$ Misc Hardware - El Pueblo WTP Analyzer Room LightsINFOSEND 6/13/2019 27707 299.80$ UB Past Due Printing & Mailing - May 2019JACKSON LANDSCAPE 6/13/2019 27708 330.00$ Landscape Maint - 2 Civic Ctr - May 2019KASSIS WILLIAM 6/28/2019 27757 567.42$ Retiree Medical - Jun 2019KBA DOCUSYS INC 6/28/2019 27758 394.18$ Copier Lease - Jun 2019KENNEDY/JENKS CONSULTANTS 6/28/2019 27759 11,327.14$ Orchard Run WTP Water Quality Imp - Engineering ServicesLAS ANIMAS CONCRETE 6/28/2019 27760 945.60$ Main Maint - Sand SlurryLAUNCH BRIGADE 6/13/2019 27709 585.00$ Website Services - reCAPTCHA DevelopmentLAW OFFICE OF ROBERT E BOSSO 6/13/2019 27710 3,000.00$ Legal Counsel Services - May 2019LEWIS GREGORY 6/13/2019 27711 93.75$ SA-93 Plan ReviewLLOYD'S TIRE SERVICE 6/13/2019 27712 29.50$ Vehicle Maint - Flat Repair - Truck 15LLOYD'S TIRE SERVICE 6/13/2019 27712 538.49$ Vehicle Maint - Starter Repair - Truck 8MARTIN B FEENEY PG CHg 6/13/2019 27713 16,382.92$ Well 3B Rehab - Condition AnalysisMILLER MAXFIELD INC 6/13/2019 27714 4,937.50$ Execution of Annual Communication Plan - May 2019MILLER MAXFIELD INC 6/13/2019 27714 637.50$ Interagency Advisory Committee Support - May 2019MISSION UNIFORM SERVICE 6/13/2019 27715 625.40$ Uniform Laundering & Rental Service - May 2019MONTGOMERY & ASSOCIATES INC 6/28/2019 27761 945.00$ GW Elevation Data Collection - May 2019NATIONAL METER & AUTOMATION INC. 6/13/2019 27716 501.48$ Misc AMI Parts - Mounting BracketsNATIONWIDE RETIREMENT SOLUTIONS 6/13/2019 27717 2,058.86$ IRS 457 Plan - Payroll Date 6/7/2019NATIONWIDE RETIREMENT SOLUTIONS 6/28/2019 27762 2,058.86$ IRS 457 Plan - Payroll Date 6/21/2019NATURAL ORANGE INC 6/28/2019 27763 63.00$ Monthly Pest Control - El Pueblo - Jun 2019NATURAL ORANGE INC 6/28/2019 27763 104.00$ Monthly Pest Control - 2 Civic Ctr - Jun 2019

6.3 - 11


Vendor Name Check Date Check No. Check Amount DescriptionNORTH BAY FORD 6/13/2019 27718 576.86$ Vehicle Maint - RCM Repair - Truck 24NORTON PATRICIA 6/28/2019 27764 18.56$ Retiree Vision - Jun 2019NORTON PATRICIA 6/28/2019 27764 458.51$ Retiree Medical - Jun 2019NORTON PATRICIA 6/28/2019 27764 33.72$ Retiree Dental - Jun 2019OLIVE SPRINGS QUARRY 6/28/2019 27765 176.58$ Main Maint - AsphaltPACIFIC GAS & ELECTRIC 6/13/2019 27720 59.87$ Electricity - Skypark - May 2019PACIFIC GAS & ELECTRIC 6/13/2019 27720 13.96$ Electricity - Santas Village Rd - May 2019PACIFIC GAS & ELECTRIC 6/28/2019 27766 903.12$ Electricity - 2 Civic Ctr - Jun 2019PACIFIC GAS & ELECTRIC 6/28/2019 27766 39,905.64$ Electricity - PW - Jun 2019PACIFIC GAS & ELECTRIC 6/28/2019 27766 123.09$ Electricity - RW - Jun 2019PALACE ART & OFFICE SUPPLY 6/13/2019 27721 36.85$ Office Supplies - NotebooksPALACE ART & OFFICE SUPPLY 6/13/2019 27721 58.26$ Office Supplies - CalculatorPATEL PRANAV 6/13/2019 27722 50.00$ Customer Rebate - ToiletsPERRI CHRISTOPHER 6/28/2019 27767 1,676.44$ Director Medical - Jun 2019PIED PIPER EXTERMINATORS 6/13/2019 27723 520.00$ Facility Maint - Pest Control @ Pump BuildingsREBER DANIEL 6/28/2019 27768 2,058.58$ Director Medical - Jun 2019RED WING SHOE STORE 6/13/2019 27724 185.70$ Work Boots - FloresRIVERA HUGO 6/28/2019 27769 112.55$ Training - D5 Cert Review Course - RiveraSALINAS PUMP CO 6/28/2019 27770 12,075.00$ Well 3B Maint - Pull Inspect & Re-Install Pump & Video WellSALINAS PUMP CO 6/28/2019 27770 7,889.00$ Orchard Run Booster - Install New Pump & MotorSANTANA PAVING & GRADING INC 6/13/2019 27725 7,000.00$ Re-Paving - Main Break on Charles Hill RdSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27726 7.83$ Misc Supplies - Sand Hill Booster StationSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27726 25.08$ Vehicle Maint - Number DecalsSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27726 256.29$ Treatment Plant Maint - Galv Pipe/Fittings Jars Battery MiscSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 75.18$ Misc Meter Maint SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 157.72$ Treatment Plant Supplies - Number Decals & Light TubesSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 693.04$ Small Tools - Pliers/Wrenches, Clamps, Sockets, Pumps, Stakes, MiscSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 179.53$ Orchard Run WTP Backwash Line - Misc HardwareSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 68.52$ Office Supplies - Trash Bags & Paper SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 245.91$ Misc OPS SuppliesSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 61.63$ Finance ChargeSCARBOROUGH LUMBER & BUILDING SUPPLY 6/13/2019 27727 24.51$ Safety Supplies - Work LightSCOTTS VALLEY BANNER - VALLEY PRESS 6/13/2019 27728 260.00$ SV Banner Ad - Hiring Adm Office Assistant 5/31SCOTTS VALLEY BANNER - VALLEY PRESS 6/28/2019 27771 260.00$ SV Banner Ad - Hiring Adm Office Assistant 6/7SCOTTS VALLEY SPRINKLER 6/28/2019 27772 225.18$ Treatment Plant Supplies - Thread Fees & PipingSKINNER PAULA 6/13/2019 27729 25.00$ Customer Rebate - ToiletSOIL CONTROL LAB 6/28/2019 27773 446.00$ Water Quality TestingSTEVENS JOHN 6/28/2019 27774 100.00$ Customer Rebate - ToiletSTEVENSON LANDSCAPING 6/13/2019 27731 855.00$ Landscaping at Misc Locations - May 2019STILES RUTH 6/28/2019 27775 746.16$ Director Medical - Jun 2019SWRCB-DWOCP 6/13/2019 27732 100.00$ Training - D3 Cert Exam - DeBritoSWRCB-DWOCP 6/28/2019 27776 155.00$ Training - D5 Cert Exam - RiveraTIMES PUBLISHING GROUP INC 6/13/2019 27733 175.00$ SV Times Ad - Jun 2019TPx COMMUNICATIONS 6/28/2019 27777 528.21$ VOIP Phone Service - Mar-Jun 2019 & CancellationUNITED SITE SERVICES 6/13/2019 27734 186.20$ Portable Toilet Rental - 229 Mt Hermon - Jun 2019UNITED SITE SERVICES 6/13/2019 27734 170.61$ Portable Toilet Rental - Orchard Run WTP - Jun 2019UNITED STATES POSTAL SERVICE 6/13/2019 27735 3,000.00$ Refill Postage MeterUNIVERSAL BUILDING SERVICES 6/13/2019 27736 437.00$ Janitorial Service - 2 Civic Ctr - May 2019UNIVERSAL BUILDING SERVICES 6/13/2019 27736 355.00$ Janitorial Service - El Pueblo - May 2019USABLUEBOOK 6/13/2019 27737 308.36$ OPS Supplies - Master LocksVALERO MARKETING & SUPPLY CO 6/13/2019 27738 467.60$ Vehicle Fuel - May 2019VAN DER STEEN JAN 6/28/2019 27778 9,182.00$ Bethany 2nd Tank Addition - Removal of Fence, Posts, Barbed WireVAN DER STEEN JAN 6/28/2019 27778 15,950.00$ Bethany 2nd Tank Addition - Clearing Vegetation & Prepping SiteVERIZON WIRELESS 6/28/2019 27779 300.82$ Cell Phones / Tablets - Jun 2019WADATZ CHRISTOPHER 6/28/2019 27780 5.42$ UB Refund Check - 011298-000WILLIAM A THAYER CONSTRUCTION INC 6/28/2019 27781 6,184.57$ Release of Retention - Whispering Pines RW MainWINCHESTER AUTO 6/13/2019 27739 36.32$ Vehicle Maint - Backup & Brake Lights - Truck 12WINCHESTER AUTO 6/13/2019 27739 20.69$ Vehicle Maint - Wiper Blades - Truck 10WINCHESTER AUTO 6/13/2019 27739 211.64$ Vehicle Maint - Truck Anchors , Cargo Bar, Touch-a-Truck SuppliesYANG ESTHER 6/28/2019 27782 50.00$ Customer Rebate - Pressure Regulator

264,071.68$

6.3 - 12


Vendor Name Check Date Check No. Check Amount Description

Legend: Abbreviation: Meaning:PW Potable WaterRW Recycled WaterWW Waste 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 BillingAMI Advanced Metering Infrastructure

6.3 - 13

Scotts Valley Water DistrictInvestment SummaryAs of 6/30/2019

Market Value

Institution Investment CUSIP Purchased Maturity Purchase $ 3/31/2019 6/30/2019 3/31/2019 6/30/2019 6/30/2019

Unrestricted Funds:

LAIF Local Agency Investment Fund various 2.550% 2.570% 654,881$ 658,989$ 658,364$

WFB Checking - General various 0.03% 0.03% 11,849$ 15,799$ 15,799$

WFB Checking - Payroll various 0.03% 0.03% 9,963$ 11,425$ 11,425$

WFB Checking - Revenue various 0.00% 0.00% 2,123,490$ 2,246,934$ 2,246,934$

WFB CD - Comenity Cap Bank 20033APT7 3/29/16 4/4/19 100,000$ 1.30% 0.00% 100,000$ -$ -$

WFB CD - Goldman Sachs Bank USA 38148PJB4 3/24/17 3/20/22 100,000$ 2.40% 0.00% 100,000$ -$ -$

Subtotal for Unrestricted Funds: 200,000$ 3,000,183$ 2,933,147$ 2,932,521$

Weighted Average Yield 0.58%

The current investments comply with the requirements of the Investment Policy (P200-14-1)Sufficient cash is available to meet expected expenditure requirements for the next six months.

Balance as of:Rate

6.3 - 14

Well Produc on

Total Produc on (Million Gallons) May 2019 30.8 MG 17.2 % increase from April June 2019 34.7 MG 12.7 % increase from May

Produc on is Water Pumped +/‐ Water used for Well Maintenance Ac vi es

6.4 - 1

Potable Water Demand

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Demand is Production +/- Change in Storage

6.4 - 2

Potable and Recycled Water Demand vs. Population

Demand is Production +/- the Change in Storage

531 557

471412 414 441

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Potable Water (MG) Recycled Water (MG) Population

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6.4 - 3

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Potable Demand Recycled Demand Rain

Potable and Recycled Water Demand vs. Rainfall

Rain

(Inc

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Demand is Production +/- the Change in Storage

6.4 - 4

Potable and Recycled Water Demand

Potable

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average

Jan. 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 24,389,215 26,774,787

Feb. 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 22,427,754 21,923,206 24,225,160

March 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 24,042,592 22,948,490 27,352,047

April 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 25,967,700 26,263,989 29,601,627

May 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 35,200,764 30,913,334 38,410,028

June 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 36,867,578 34,451,160 41,054,524

July 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 39,728,472 ‐ 44,557,899

Aug. 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 38,756,447 ‐ 44,319,858

Sept. 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 37,610,582 ‐ 40,185,051

Oct. 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 34,839,533 ‐ 36,178,147Nov. 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 30,112,415 ‐ 27,409,060

Dec. 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 25,169,209 ‐ 25,743,059

Total 471,060,380 411,930,514 413,759,753 440,736,967 472,661,082 397,193,044 356,483,075 358,527,047 387,892,285 374,399,297 160,889,394 450,161,099

Recycled 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Average

Jan. 496,000 62,000 496,000 2,139,000 620,000 3,019,613 635,420 862,984 156,267 838,172 493,100 892,596

Feb. 448,000 0 1,120,000 2,352,000 2,268,000 1,248,862 1,545,957 1,813,868 94,521 2,589,717 366,055 1,258,816

March 1,178,000 620,000 620,000 1,054,000 2,723,665 1,579,882 4,231,231 972,360 544,666 1,141,831 322,464 1,362,554

April 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 2,333,176 2,969,672 3,114,484

May 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 7,306,666 4,584,239 6,994,338

June 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 9,739,276 7,067,867 8,575,632

July 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 10,744,706 ‐ 9,585,429

Aug. 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 10,078,073 ‐ 9,470,794

Sept. 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 7,522,571 ‐ 7,888,499

Oct. 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 6,967,548 ‐ 5,421,284

Nov. 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 5,514,338 ‐ 2,134,224Dec. 1,333,000 403,000 2,201,000 341,000 2,453,395 236,228 1,119,017 529,158 1,670,966 994,336 ‐ 1,128,110

Total 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 65,770,410 15,803,397 54,587,821

Demand is Production +/‐ the Change in Storage

6.4 - 5

Rainfall El Pueblo Weather Station

WATER YEAR Oct Nov Dec Jan Feb Mar Apr May June Jul Aug Sep TOTAL % of Ave

1981‐82 0.14 11.20 5.90 28.80 6.88 8.26 8.40 0.03 0.00 0.00 0.04 1.28 70.93 168%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 86.25 205%

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 82%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 83%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 58.27 138%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 55%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 73%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 49%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 63%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 80%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 50.06 119%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 66%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 58.74 139%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 47.08 112%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 47.67 113%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 63.74 151%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 97%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 49.41 117%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 80%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 98%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 42.46 101%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 90%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 57.35 136%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 63.33 150%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 54%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 79%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 80%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 46.28 110%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 58.00 138%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 77%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 76%

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 48%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 69%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 42.65 101%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 80.14 190%2017‐18 0.10 4.02 0.08 6.43 0.56 10.07 2.85 0.01 0.13 0.01 0.00 0.00 24.26 57%2018‐19 0.08 5.24 3.72 10.49 13.11 6.91 0.86 3.07 0.07 ‐ ‐ ‐ 43.55 103%

Cumulative 2018‐2019 0.08 5.32 9.04 19.53 32.64 39.55 40.41 43.48 43.55 ‐ ‐ ‐ 43.55Monthly Average 1981‐2018 2.02 4.90 8.08 8.38 8.16 6.57 2.52 0.93 0.25 0.01 0.04 0.27 42.13Cumulative Ave 1981‐2018 2.02 6.92 15.00 23.38 31.54 38.11 40.63 41.56 41.81 41.82 41.86 42.13 42.13

6.4 - 6

Leak Adjustment Program ReportFY 2019

PeriodRES

RequestsCII

Requests Approved Denied Appeal Reasons Denied Total Adjust

Credit Total Excess Use

(gallons)Jul-18 0 0 0 0 0 N/A $0 -

Aug-18 24 1 22 3 0 < 5 years since last adjustment $13,765 1,196,195 Sep-18 5 1 4 1 1 < 5 years since last adjustment $2,075 175,460 Oct-18 28 4 25 6 1 < 5 years since last adjustment $15,778 1,199,760 Nov-18 14 0 11 3 0 < 5 years since last adjustment $4,625 284,536 Dec-18 17 1 18 0 0 N/A $9,951 825,862 Jan-19 16 0 16 0 0 N/A $5,368 423,017 Feb-19 12 0 11 1 0 < 5 years since last adjustment $6,860 501,889 Mar-19 15 2 16 1 0 < 5 years since last adjustment $8,909 627,023 Apr-19 10 0 10 0 0 N/A $6,784 470,374

May-19 8 1 8 1 0 < 5 years since last adjustment $6,011 464,121 Jun-19 9 0 9 0 0 N/A $8,021 540,976

Total 158 10 150 16 2 $88,147 6,709,213

28%

40%

24%

4% 1% 3%

Location of Adjusted Leaks

Irrigation/Hoses

Service Line

Toilets

House Plumbing

Appliances

Other

6.4 - 7

36 Active Service Applications242 New Service Connections$5.07 MM in Capacity Fee RevenueDoes not include conceptual projects (Aviza, SV Annex, Town Center, Gateway South Lot 1 and Lot 2)

Potable

Recycled

*5/8" meter for indoor use only, installed for individual units in a high-density development that uses recycled water for irrigation.**3/4" meter for indoor use only, installed for individual units in a high-density development that uses recycled water for irrigation.

Commercial Varies 8 1,759,758 0.39%

High-Density Single Family Residential** 3/4" 44 1,806,750 0.40%

Multi-Family Residential (Master Metered) 3/4" 6 1,642,500 0.36%

Single Family Residential 5/8" 72 4,927,500 1.09%

High-Density Single Family Residential* 5/8" 101 4,147,313 0.92%

Development Projects Status ReportActive Service Applications as of July 31 2019

Service Type Service Size (Inches) No of Connections Annual Demand (Gal) Percent of Existing Demand

Total - 231 14,283,821 3.17%

Landscape Irrigation Varies 11 3,094,498 5.35%

6.4 - 8

14

28

15 15

44

25

12

64

3 3

0

10

20

30

40

50

60

70

FY2020 FY2021 FY2022 FY2023

No

of C

onne

ctio

ns

Fiscal Year

Projected Timeline - Residential Connections

Single Family

High-Density Single Family

Multi- Family (Master Meter)

Service Type

1

3

2 2

5

4

2

00

1

2

3

4

5

6

FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023

No

of C

onne

ctio

ns

Fiscal Year

Projected Timeline - Commercial and Recycle Connections

Commercial

Recycle Landscape Irrigation

Service Type

6.4 - 9

June 25, 2019

SAFE DRINKING WATER

SB 101 – BUDGET TRAILER BILL

OPPOSE

8.0 - 1

The Honorable Philip Ting

Chair, Assembly Committee on Budget

State Capitol, Room 6026

Sacramento, CA 95814

Dear Chair Ting,

The organizations listed below support the safe drinking water funding agreement that came together

because of the leadership of Governor Newsom, Senate President pro Tem Atkins and Assembly

Speaker Rendon, the work of the Conference Committee on the Budget and action by the Legislature.

The organizations listed below support AB 100 as the budget trailer bill to enact the agreement.

However, the organizations listed below oppose SB 101 because of the omission of important language

and the inclusion of problematic language. Following are two primary examples (not a complete list).

SB 101 does not prioritize the funding for disadvantaged communities and low-income households. (AB 100 appropriately includes that prioritization at Page 27, Line 26.)

SB 101 would greatly expand the scope of the program beyond making sure that there is access to safe drinking water. (See SB 101, Page 17 at Line 12.)

The Governor and Legislature are enacting a historic funding solution so that disadvantaged communities that do not have access to safe drinking water will have safe drinking water. The organizations listed below oppose SB 101. They support AB 100. They urge a “No” vote on SB 101 when it is heard by the Assembly Committee on Budget.

Sincerely,

ORGANIZATIONS OPPOSED TO SB 101 (AND IN SUPPORT OF AB 100) Robert Shaver General Manager Alameda County Water District

Cindy Tuck

Deputy Executive Director for Government

Relations

Association of California Water Agencies

David Coxey General Manager Bella Vista Water District

Paul Kelley Executive Director CalDesal

Peter Blake Executive Director California Cleaners Association Danielle Blacet-Hyden Director for Water California Municipal Utilities Association Eric Bergh Interim General Manager Calleguas Municipal Water District

8.0 - 2

Felix Riesenberg, P.E. Assistant Public Works Director/Utilities City of Fairfield John Bosler General Manager/CEO Cucamonga Valley Water District John Mura General Manager East Valley Water District Water District Lauren Brent Bumb President and CEO El Dorado County Joint Chambers Commission Jim Abercrombie General Manager El Dorado Irrigation District Angi Perry President and CEO Elk Grove Chamber of Commerce Mark Madison

General Manager

Elk Grove Water District Greg Morrison Government Relations Officer Elsinore Valley Municipal Joe Gagliardi President and CEO Folsom Chamber of Commerce Steven Palmer, PE General Manager Georgetown Divide Public Utility District

John Friedenbach General Manager Humboldt Bay Municipal Water District

David Hull General Manager Humboldt Community Services District Donald M. Zdeba General Manager Indian Wells Valley Water District Shivaji Deshmukh General Manager Inland Empire Utilities Agency David Pederson

General Manager

Las Virgenes Municipal water District

Jim Anderson General Manager Malaga County Water District Paul E. Shoenberger, P.E. General Manager Mesa Water District Tammy Rudock General Manager Mid-Peninsula Water District Tom McCarthy General Manager Mojave Water Agency Shawn Lewis Policy Director National Federation of Independent Businesses Adam W. Robin Legislative Affairs Director Northern California Water Association Mark Watton General Manager Otay Water District Tom Kennedy General Manager Rainbow Municipal Water District

8.0 - 3

Diann Rogers President and CEO Rancho Cordova Chamber of Commerce Greg Thomas General Manager Rincon del Diablo Municipal Water District Wendy Gerig President and CEO Roseville Area Chamber of Commerce

Glenn Farrel Government Relations Manager San Diego County Water Authority Brad Jensen Director of Public Policy San Gabriel Valley Economic Partnership

Paul Helliker General Manager San Juan Water District Piret Harmon General Manager Scotts Valley Water District

Kirk R. Howie Chief Administrative Officer Three Valleys Municipal Water District Tom Trott General Manager Twain Harte Community Services District Dave Butler Advocate United Chamber Advocacy Network Gary Arant General Manager Valley Center Municipal Water District

cc: Honorable Members, Assembly Committee on Budget Nick Hardeman, Chief of Staff, Office of Senate President pro Tempore Toni Atkins

Chris Woods, Budget Director, Office of Senate President pro Tempore Toni Atkins Kimberly Rodriguez, Policy Director, Office of Senate President pro Tempore Toni Atkins Kip Lipper, Chief Policy Advisor, Energy and the Environment, Office of Senate President pro Tempore Toni Atkins Carrie Cornwell, Chief of Staff, Office of Assembly Speaker Anthony Rendon Alf Brandt, Senior Counsel, Office of Assembly Speaker Anthony Rendon Lindsey Dietz, Chief of Staff, Office of Senate Republican Leader Shannon Grove Jayme Chick, Chief of Staff, Office of Assembly Republican Leader Marie Waldron Genevieve Morelos, Consultant, Assembly Committee on Budget Katie Sperla, Consultant, Assembly Republican Caucus

8.0 - 4


Date:

To:

Item:

Subject:

Reason:

08/08/19

Board of Directors

Additional Business 12.1

Employment Agreement with General Manager

Complies with Administrative Code Section 2.10.050

SUMMARY Recommendation: Approve the employment agreement with General Manager.

Fiscal Impact: The current annual salary is $183,456.

Previous Related Action: On 08/09/18 the Board approved the terms of employment agree-ment with General Manager.

DISCUSSION

The Board conducts an annual performance evaluation of the General Manager following the close of the District’s fiscal year. This allows for alignment of the District’s annual work plan with the accomplishments of the General Manager and provides for more transparent, objec-tive and fair assessment.

The General Manager compensation, similarly to the other District at-will employees’ compen-sation, is based on their individual contributions in support of the District’s strategic goals, their management / leadership competencies and salary competitiveness.

The General Manager pays the full cost of the employee contribution of the PERS retirement benefit and is entitled to receive all other employee benefits as provided to the regular full-time District employees, but not including overtime or compensatory time off benefits.

Submitted,


Enclosed: SVWD Employment Agreement Harmon 08/09/19

12.1 - 1

Harmon 8/9/19, Page 1

Scotts Valley Water District EMPLOYMENT AGREEMENT

General Manager This Agreement is entered into on August 9, 2019 by and between Scotts Valley Water District, a public agency (“District”), and Piret Harmon ("Employee"), who agree as follows: 1. Recitals. The Board of Directors (“Board”) of the District selected the Employee as the General Manager of the District, commencing on July 8, 2013. 2. Employment. The Employee hereby accepts such employment on the terms and conditions of this Agreement. In accordance with the provisions of section 53262 of the Government Code, this Agreement is subject to ratification in an open session of a meeting of the Board. 3. Term. The Employee serves at the pleasure of the Board and will continue to serve in that capacity until that relationship is terminated by either party as hereinafter provided. 4. Duties. Duties under this Agreement will be those assigned to the Employee by the Board; as described in the job description for General Manager position, as adopted and amended from time to time by the Board; as specified in sections 30579, 30580 and 30581 of the California Water Code; and such other duties and responsibilities as may be assigned by the Board from time to time. The Employee will be the chief executive officer of the District and work under the direction of the Board. 5. Work Hours. The Employee will devote his/her full time, attention and energies to the duties of General Manager, and will be available to work at such times as necessary to fully and competently perform the duties, regardless of the number of hours involved. The Employee acknowledges that the duties of General Manager may require an average of more than forty hours per week, and that some day-to-day work hours may vary. The Employee will not be compensated for overtime hours worked or otherwise earned or be entitled to compensatory time off for hours worked in excess of eight hours per day or forty hours per week. The Employee will not engage in any conduct or other employment or business that would interfere with his/her responsibilities and duties to the District or that would reflect unfavorably on the interests of the District. So that the Board may be assured of the extent of any other demands upon time and attention, the Employee will disclose in confidence to the Board the nature and scope of any other business activities during the term of this Agreement. 6. Compensation. For all services to be rendered by under this Agreement by the Employee, the District will provide the following salary and benefits:

12.1 - 2


(a) Effective July 30, 2019 the Employee will be paid a salary in the amount of $_________ per year ("Base Salary"), payable in payments every two weeks on the District’s normal payroll dates; (b) In addition to the Base Salary, the District will pay an amount of $200 each month to compensate for use of the Employee’s personal vehicle for District purposes;

(c) The Board will review and evaluate the Employee’s performance annually at or near end of the District’s fiscal year; based on the annual performance review, the Board may increase the Base Salary effective at or near August 1 each year;

(d) Other than specifically provided for herein, the Employee will be entitled to receive all other employee benefits (including vacation and sick leave, accrual of vacation and sick leave, retirement system membership and employer contributions, deferred compensation investment opportunities, and employee and dependent coverage on health, dental and other group insurance programs as provided to other regular full-time District employees, but not including overtime or compensatory time off benefits. The Employee will be entitled to: (1) Vacation leave accrual of 26 days annually (accrual of 8.00 hours per pay period); (2) Administrative leave of 12 days annually;

(3) Sick leave accrual of 7 days annually (accrual of 2.15 per pay period); (4) An amount of $500 per month contributed to Employee’s 457 Plan account in lieu of the District provided medical insurance coverage; (5) An amount of $200 per month contributed to Employee’s 457 Plan account in lieu of the District provided retiree health benefits.

As of June 30th of each year, the Employee will be paid for all hours over 240 unless the Employee elects to contribute an equivalent cash amount to their 457 Plan. The Employee may exceed the annual 240 hours cap if excess vacation is scheduled to be taken no later than December 31st of that year. The Employee will not be able to carry over any administrative leave into a next fiscal year, any balance as of June 30th of each year will be lost. Upon separation, the Employee will receive in cash, or pay in cash, the prorated value of their annual administrative leave. The Employee will be able to convert any amount of vacation leave balance to sick leave and accrue unlimited sick leave. There is no cash-out payment of accrued sick leave.

The Employee will be entitled to be reimbursed for the reasonable amount of his/her actual and necessary expenses incurred in carrying out the duties of General Manager to the extent that the

12.1 - 3


expenses have been budgeted and properly documented in conformance with the District’s policies and the Internal Revenue Service’s requirements for an Accountable Plan. Reimbursement for travel-related expenses incurred by Employee for travel outside of the State of California will require the prior approval of the Board of Directors, except for travel to attend conferences, seminars and related events sponsored by the American Water Works Association, Association of California Water Agencies, the American Society of Civil Engineers, the Water Environment Federation and the National Groundwater Association. 7. Other Terms and Conditions of Employment. (a) The Employee's employment also will be governed by District’s Employee Handbook. The District and the Employee will comply with all applicable provisions of the Employee Handbook. If a term or condition of this Agreement is inconsistent or in conflict with a term or condition of the Employee Handbook, the provisions of this Agreement will govern. (b) The Employee acknowledges that the position of General Manager is one requiring frequent and highly-visible contact and involvement with members of the public and the community, and that in many respects General Manager is the spokesperson and representative of the District. The Employee will not engage in any conduct within or outside the scope of his/her employment with the District that reflects unfavorably on or discredits the District, its Board, or other employees. 8. Termination. This Agreement may be terminated in any one of the following ways: (a) By mutual agreement of the parties, expressed in writing. (b) By the Employee upon giving to the District no less than 30 days prior written notice of his/her election to terminate. Vacation days will not be included in the calculation of the 30 day period except as otherwise approved by the Board. (c) By the District, for cause, upon giving to the Employee a written notice of immediate termination. The written notice of termination will specify (1) the particular cause(s) and the facts and circumstances justifying the termination of the Agreement for cause, and (2) the opportunity to be heard before the Board on the reasons for his/her termination. If the Employee requests a hearing, the hearing will be held at the Board's earliest convenience in a closed session, unless the Employee requests an open session hearing. After the hearing, the Board may affirm, modify or reverse its decision to terminate for cause. For purposes of this Agreement, the following will justify termination for cause: willful breach of duty; habitual neglect of duty; gross insubordination; conviction of a crime involving moral turpitude; conduct that makes it impossible or impracticable to perform the duties under this Agreement, or that seriously impedes the District operations; conduct that tends to bring discredit to the District, or conduct unbecoming an employee in public service; mishandling of the District funds; any intentional misrepresentation or fraud in connection with the performance of his/her duties; or, theft of the District property.

12.1 - 4


(d) By the District, without cause, upon giving to the Employee a written notice of immediate termination and payment of severance pay in an amount equal to the Employee’s then monthly salary multiplied by six (6) months. Notwithstanding the provisions of any District rule, regulation, policy, procedure or practice to the contrary, upon termination of employment, and whether with or without cause, the Employee will not be entitled to any compensation, damages or other monetary award except as to vested rights and benefits and amounts specifically authorized by this Agreement. 9. Indemnification and Defense. To the fullest extent and manner provided for public employees by applicable law, the District will indemnify, defend, and hold the Employee harmless from and against all demands, claims, suits, actions and legal proceedings arising out of or relating to any act or omission occurring within the scope of his/her employment as an employee of the District. 10. Entire Agreement. This writing constitutes the sole, entire, integrated and exclusive contract between the parties respecting employment by the District, and any other contracts, contract terms, understandings, promises or representations not expressly set forth or referenced in this writing are null and void, and of no force and effect. This Agreement supersedes in full any prior Employment Agreement between the Employee and the District. 11. Notices. Any notice to be given to will be sufficiently served if given to the Employee personally, or if deposited in the United States Mail, regular pre-paid mail, addressed to the Employee at his/her most recent residence address as shown on the District payroll records. Any notice to be given to the District will be addressed and delivered or mailed to the Board at the District office. 12. Successors and Assigns. This Agreement is personal to the Employee. The Employee may not transfer or assign the Agreement or any part of it. Subject to this restriction on transfer and assignment, this Agreement will bind, and inure to the benefit of, the successors, assigns, heirs and legal representatives of the parties. 13. Amendments. This Agreement may be amended only by a subsequent writing approved and signed by both parties. Any amendment by the District must be approved by the Board at a public meeting. Individual Board members do not have the authority, express or implied, to amend, modify, waive or in any way alter this Agreement or the terms and conditions of employment. 14. Waiver. The waiver at any time by either party of its rights with respect to a default or other matter arising in connection with this Agreement will not be deemed a waiver with respect to any subsequent default or matter. 15. Construction and Interpretation. The parties agree and acknowledge that this Agreement has been arrived at through negotiation, and that each party has had a full and fair opportunity to revise the terms of this Agreement. Consequently, the normal rule of construction that any

12.1 - 5


ambiguities are to be resolved against the drafting party will not apply in construing or interpreting this Agreement. 16. Applicable Law. This Agreement will be deemed to be executed in the State of California, County of Santa Cruz and any action concerning this Agreement not covered by the provisions of Section 17, will have its venue in the Superior Court for the State of California in and for the County of Santa Cruz. 17. Arbitration. In the event that there is any dispute or claim arising out of this Agreement, that dispute or claim will be decided by neutral binding arbitration in accordance with the provisions of the California Code of Civil Procedure applicable to civil arbitrations. The filing of a judicial request for injunction or other provisional remedies will not constitute a waiver of the requirement to arbitrate under this provision. IN WITNESS WHEREOF, this Agreement was approved by and between the Employee and the District on the date set forth above. _____________________________ _____________________________ Danny Reber, President Piret Harmon, Employee Board of Directors Approved as to Form: _____________________________ Robert E. Bosso Legal Counsel

12.1 - 6