regular board meeting · 2020. 7. 28. · nuleaf tech rachel major, nuleaf tech . scotts valley...

AGENDA PACKET

REGULAR BOARD MEETING 05/09/19 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 William “Bill” Ekwall

Chris Perri Ruth Stiles

GENERAL MANAGER Piret Harmon Board of Directors

Regular Meeting

Santa Margarita Community Room

2 Civic Center Drive, Scotts Valley, California

05/09/19 7:00 p.m.

Agenda

1. Convene Meeting

1.1 Call to Order and Roll Call

1.2 Pledge of Allegiance and Invocation

1.3 Closed Session Report (None)

1.4 Additions/Deletions to the Agenda

1.5 Oral Communications for Items not on the Agenda.

2. Closed Session

The President opens the closed session, announces the closed session item(s) and invitespublic comment.

The President announces a short recess to clear the room.

2.1 Conference with Labor Negotiator (Government Code Section §54957.6)Piret Harmon, District Negotiator.

3. Report on Closed Session and Additional Items

3.1 Report on Closed Session - oral

3.2 Memorandum of Understanding (MOU) between the Scotts Valley Water District(SVWD) Scotts Valley Water District Employees Organization (SVWDEO) Local 101 AFSCME, AFL-CIO

Recommendation: Authorize the General Manager to execute the Memorandum of Understanding (MOU) between the Scotts Valley Water District (SVWD) Scotts Valley Water District Employees Organization (SVWDEO) Local 101 AFSCME, AFL-CIO.

4. Administrative

4.1 Approval of Minutes – 04/11/19 Regular Board Meeting

4.2 Presentations

NuLeaf Tech Rachel Major, NuLeaf Tech

Scotts Valley Water District Board of Directors Agenda – 05/09/19 Page 2

4.3 Water Use Efficiency Biannual Activity Summary LeAnne Ravinale, Water Use Efficiency Coordinator

4.4 Committee and other Agency Meeting Reports

Executive & Public Affairs Committee – 04/15/19

Finance & Personnel Committee – 04/16/19

Interagency Committee – (None)

Water Resources & Engineering Committee – 04/23/19

Santa Margarita Groundwater Agency (None)

4.5 Call for Nominations for the Special District Alternate Member Seat on LAFCO

4.6 Board Compensation Evaluation

5. Consent

5.1 Service Application with Main Extension Agreement: Lennar Homes California, LLC –Lennar Homes Affordable Housing, APN 022-902-12

Recommendation: Approve the terms and authorize the General Manager to execute the Main Extension Agreement for Lennar Homes Affordable Housing development (APN 022-902-12).

5.2 2019 Water Supply Outlook

Recommendation: Receive information.

6. Public Hearings (None)

7. Business

7.1 Water Use Efficiency Program Think Twice Update and Rebate Program Update

Recommendation: 1) Approve the Think Twice Water Use Efficiency Program; and 2) Approve the Rebate Program.

7.2 FY 2020 Proposed Budget Summary

Recommendation: Receive information and provide direction.

7.3 Contract for Professional Audit Services

Recommendation: Authorize the General Manager to execute an agreement with the CPA firm Nigro & Nigro PC to provide professional audit services for the fiscal years ending June 30, 2019, 2020, and 2021 with an option to renew the agreement for three (3) additional one-year periods.

7.4 Promissory Note, Vineyards Residential Association


Recommendation: Ratify the promissory note with the Vineyards Residential Association.

8. Staff Reports

8.1 LegalDistrict Counsel – oral

8.2 Administrative General Manager – oral

8.3 Finance Financial Reports for period ending 03/31/19

8.4 Operations Operations Report – oral Leak Adjustment Program Report

8.5 Water Use Efficiency Biannual Activity Summary – presented Item No. 4.2

9. Directors Reports

Debrief Board Workshop: Group to Team 03/27/19

Travel and MeetingsACWA and ACWA/JPIA UpdatesOther

10. Written Correspondence (None)

11. Community Relations

11.1 April 2019 Newsletter

12. Future Items

FY 2020 Final Proposed Budget (June)Strategic Planning Workshop

13. Meetings and Event Calendar

Regular Board MeetingsSanta Margarita Community Room

06/20/19 07/11/19 08/08/19

Committee Meetings District Conference Room

05/13/19 Executive & Public Affairs 05/13/19 Water Resources & Engineering


05/14/19 Finance & Personnel 05/13/19 Interagency

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

05/23/19 06/27/19 07/25/19

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 next regular meeting of the Scotts Valley Board of Directors is schedule for 06/20/19 at 7:00 p.m. in the Santa Margarite Community Room, 2 Civic Center Drive, Scotts Valley, California.

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

REVIEW ANY PUBLIC RECORDS FURNISHED TO THE BOARD OF DIRECTORS AT THE SAME TIME SUCH RECORDS ARE FURNISHED TO

THE BOARD OF DIRECTORS. SUCH RECORDS SHALL BE AVAILABLE AT THE DISTRICT OFFICE DURING NORMAL BUSINESS HOURS.

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

1990, THE SCOTTS VALLEY WATER DISTRICT REQUESTS THAT ANY PERSON IN NEED OF ANY TYPE OF SPECIAL EQUIPMENT, ASSISTANCE OR ACCOMMODATION(S) IN ORDER TO EFFECTIVELY COMMUNICATE AT THE DISTRICT’S PUBLIC MEETING PLEASE

MAKE SUCH A REQUEST TO THE DISTRICT OFFICE AT THE ABOVE ADDRESS OR BY CALLING (831) 438-2363 A MINIMUM OF THREE

(3) WORKING DAYS PRIOR TO THE SCHEDULED MEETING. ADVANCE NOTIFICATION WITHIN THIS GUIDELINE WILL ENABLE THE

DISTRICT TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY.

Scotts Valley Water District Board of Directors

Santa Margarita Community Room 2 Civic Center Drive, Scotts Valley, California

Regular Meeting 04/11/19 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.

Directors Bill Ekwall Wade Leishman Chris Perri Danny Reber

Staff Bob Bosso, Legal Counsel Piret Harmon, General Manager David McNair, Operations Manager Donna Paul, Assistant to General Manager

Teleconference Director Ruth Stiles

Audience Ed Harmon Georgina King, Montgomery and Associates Nicolas Kurns, Finance and Customer Service Manager

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

1.3. Closed Session Report None.

1.4. Additions/Deletions to the Agenda None.

1.5. Oral Communications None.

2. Administrative

2.1. Approval of Minutes 03/14/19 Regular Board Meeting

MOTION carried to approve the minutes of the 03/14/19 regular Board Meeting as amended by unanimous roll call vote.

2.2. Presentations

4.1-1

DRAFT

Scotts Valley Water District Board of Directors 04/11/19 Minutes Page 2

None.

2.3. Committee and other Agency Meeting Reports

Executive & Public Affairs Committee None.

Finance & Personnel Committee 03/25/19 Director Reber provided an update on the Board Compensation Study.

The Board directed staff to refer to this item Finance and Personnel Committee for further discussion.

Interagency Advisory Committee None.

Water Resources & Engineering Committee 03/28/19 There nothing further to add to the written report.

Santa Margarita Groundwater Agency Board Director Perri reported that a new alternate private well owner has been appointed, a groundwater consultant has been hired and financial reports were presented.

3. ConsentNone.

4. Public HearingsNone.

5. Business

5.1. 2018 Annual Report Groundwater Management Plan

Georgina King, Montgomery and Associates presented the 2018 Annual Report Groundwater Management Plan and provided responded to Board questions. Click here to view a copy of the PowerPoint presentation.

MOTION carried to accept the 2018 Annual Report Groundwater Management Plan by unanimous roll call vote.

5.2. Recycled Water Fill Station

Staff was directed to inform customers by email, newsletter, and website.

MOTION carried to conclude the current Recycled Water Fill Station program until further apparent benefit or critical need by unanimous roll call vote.

5.3. District FY 2020 Work Plan

MOTION to accept the FY 2020 Draft Work Plan by unanimous roll call vote.

5.4. FY 2020 Budget Assumptions

4.1-2

DRAFT

https://www.svwd.org/sites/default/files/board-meetings/presentations/2018AnnualReportGroundwaterManagementPlan.pdf

https://www.svwd.org/sites/default/files/board-meetings/presentations/2018AnnualReportGroundwaterManagementPlan.pdf


Finance and Customer Service Manager Kurns provided the staff report

and answered Board questions.

No action was taken on this item.

5.5 Capital and Maintenance Projects FY 2020-2024 Budget Projection

Operations Manager McNair presented the FY 2020 work plan. Click here to view a copy of the PowerPoint presentation.

No action was taken on this item.

6. Staff Reports

6.1. LegalLegal Counsel Bosso reported that the California Supreme Court has refused to hear the Glendale proposition 218 water rates case.

6.2. Administration The General Managers report is appended.

6.3. Finance There was nothing further to add to the financial reports for period ending 02/28/19.

6.4. Operations Operations Manager McNair provided information on the results of the Sanitary Survey, Well 3B, Annual State Reporting, new ACWA JPIA risk advisor, new hire and the upcoming touch a truck event.

7. Directors Reports

Director Reber reported on National Water Policy Fly-held in Washington, D.C., on04/03/19 and 04/04/19

8. Written Correspondence

ACWA JPIA Executive Committee Election Candidate Request Mesa Water District 03/14/19ACWA JPIA Executive Committee Election Candidate Request Humboldt Bay Water District03/26/19

The written correspondence was accepted without comment.

9. Community Relations

Newsletter Scotts Valley Water District 03/28/19

The community relations item was accepted without comment.

10. Closed Session (None)

4.1-3

DRAFT

https://www.svwd.org/sites/default/files/board-meetings/presentations/CapitalandMaintenanceProjectsFY%202020BudgetProjection.pdf


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

12. Future Items

Water Supply Outlook, Water Efficiency and Rebate Programs (May)Biannual Water Efficiency Activity Summary (May)Memorandum of Understanding (May)Budget Adoption (June)

13. Meetings and Event CalendarRegular Board MeetingsSanta Margarita Community Room

05/09/19 06/20/19 07/11/19

Committee Meetings District Conference Room

04/15/19 Executive & Public Affairs 04/16/19 Finance & Personnel 04/15/19 Water Resources & Engineering

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

04/24/19 05/23/19 06/07/19

Association of California Water Agencies (ACWA) Events 05/07/19 - 05/10/19 Spring Conference Monterey 12/03/19 – 12/05/19 Fall Conference San Diego

Conferences/Training/Workshops/Webinars (None)

14. Adjourn Meeting

The meeting adjourned at 8:57 p.m.

Danny Reber, Board President Piret Harmon, Board Secretary

4.1-4

DRAFT

STAFF REPORT – General Manager Scotts Valley Water District

Date: April 11, 2019

To: Board of Directors

From: General Manager

1. ACWA JPIA distributed refunds to the members of its insurance pool. $4.5 million in checks wasdistributed to 193 members due to the claims losses being less than projected by the JPIAactuary. By utilizing the resources provided by the JPIA such as training in the areas of employeesafety, employment practices, infrastructure management, and risk transfer, the members haveachieved a noteworthy level of success. Scotts Valley Water District was refunded $28,997.82across the Liability, Property and Workers’ Compensation Programs.

2. Scotts Valley Water District was one of the 40+ signatories to the letter sent to Senator Feinsteinand Congressman Calvert on behalf of the members of the WateReuse California. The letterasked help in securing $100 million for Title XVI-WIIN project in FY 2020. Title XVI-WIIN is acompetitive grant program within the US Bureau of Reclamation’s Water Reclamation andReuse program to provide federal cost-share grant funding for water recycling projects in thearid West.

3. The State Senate confirmed Wade Crowfoot as California Secretary for Natural Resources in abipartisan vote of 38-0. Crowfoot was appointed to this position by Governor Newsom inJanuary. He most recently served as chief executive officer of the Water Foundation, a nonprofitorganization that builds water solutions for communities, the economy and the environmentacross the American West. Prior to joining the foundation, Crowfoot served in Governor JerryBrown’s Administration as deputy cabinet secretary and senior advisor to the Governor.

4. Mesa Water District is requesting that our agency support and vote for Fred R.Bockmiller for election to the ACWA/JPIA Executive Committee. He has served on MesaWater District Board of Directors since 1996 and on ACWA JPIA Risk ManagementCommittee since 2008.4/01/19.

4.1-5

Bi-Annual Activity Summary for SVWD Board of Directors Water Use Efficiency (WUE) - November 2, 2018 - April 5, 2019

Regional Planning and Collaboration- Continued to work with the County Conservation Coalition by attending regular meetings, serving on sub-committees and sharing outreach activities. Oriented students for the Regional Student WaterWise Video Contest at SVHS, with Joel Domhoff’s ROP Video Production and Mark Andrew’s Environmental Science classes. SVHS submitted the most entries of any school in the county. Continue using EyeOnWater, begin using WaterSmart and proposing Waterfluence software programs to increase staff efficiency and customer service. Began preparations for annual (irrigation season) Think Twice Program.

Professional Development: AWWA Water Use Efficiency II training 11/13 & 14, PG&E MWELO training 11/28, AWE Outdoor Water Savings Webinar 2/9, Valley Water Ambassador Program 2/6, 2/20, 3/20, 3/28 and Soquel Creek Irrigation Efficiency Workshop 4/5.

Processed 85 Leak Adjustments

Provided 66 House Calls and/or Leak Checks

Cited one Landscape Water Waste Violation with follow up education and provided

Completed 14 Pre- and 6 Post-Rebate Inspections (Bi-annual rebate tally in the table below*)

Submit content and collaborate with PR contractor Miller Maxfield.

Continue to promote the Monterey Bay Friendly Landscaping and accept certifications and educate realtors for the City of Scotts Valley Retrofit Upon Resale programs.

Fielded over 400 Customer Service and Water Use Efficiency calls.

Rebates Processed from November 2, 2018 – April 5, 2019 (see summary on reverse)

- Lawn Replacement: 8 rebates for $13, 012 - Spray to Drip: 6 Rebates for $1,918 - Toilet Replacement: 11 rebates for $2,225 - Pressure Regulators: 10 rebates for $500 - Smart Controllers: 1 rebate for $100 - Greywater Harvesting: 0 rebates - Rainwater Harvesting: 0 rebates - Downspout Diversion: 1 rebate for $300 - Hardscape Replacement: 2 for $774

4.3-1

Water Use Efficiency Rebates/ Give-Aways Summary Nov 2018 – Apr 2019

Rebate/Give Away Type Rebate Offerings

# of Accounts

Served

# of Units/Gals/

Sq Ft SVWD Cost

Annual Water Savings (gal/yr)

6 mos Potable Gallons

Saved per SVWD $ Spent

High Efficiency Toilet $100-$125 11

22 $2,225

184,514 83

Lawn Replacement $1.00/sqft 8

13,012 $13,012

231,571 18

Low Volume Irrigation $0.50/sqft 6

3,836 $1,918

63,117 33

Hardscape Replacement $1.00/sqft 2

774 $774 N/A N/A Smart Irrigation Controller $100 1

1 $100 N/A N/A

Greywater Irrigation $150 0 - $0 0 0

Rainwater Catchment $0.25/gal 0 - $0 0 0

Downspout Diversion $75 1

4 $300 N/A N/A

Pressure Regulator $50 10

10 $500 N/A N/A

Pre-Rinse Valve Sprays Free to Customer 0 - $0 0 0

Shower Head Free to Customer 0 .7 gpm Avg of Gals Saved Per $

Spent Faucet Aerator Free to Customer 0 1.45 gpm Shut Off Nozzle Free to Customer 0 Prevents waste

Total Year Water Savings

479,202 43

4.3-2

Executive and Public Affairs Committee Meeting

04/15/19 – 4:00 p.m. District Conference Room

2 Civic Center Drive, Scotts Valley, CA 95066 Tele-Videoconference Location (Director Leishman) 5488 Marvell Lane, Santa Clara CA 95054

Meeting Report

1. Convene Meeting The meeting convened at 4:00 p.m. in the District Conference Room, 2 Civic Center Drive, Scotts Valley, California.

Present: Director Reber and Director Leishman (via videoconference) Guest: Bill Maxfield, Miller Maxfield Staff: General Manager Harmon.

2. Discussion Items

2.1 Quarterly Community Relations/ Public Outreach Update (Bill Maxfield)

The Committee received an update from District’s Communications Consultant on current community relations activities. The consultant also presented a preview of the infographic that is being prepared for the Interagency Committee. Committee provided feedback on this product.

2.2 Preparation for General Manager Evaluation

General Manager Harmon Committee gave an overview of the evaluation process in prior years. The Committee members were asked to provide a recommendation to the General Manager on any changes to be incorporated into the upcoming evaluation in July/August 2019.

4. Future Agenda Items Quarterly Community Relations / Public Outreach Update (Miller-Maxfield) Marketing Rebates Consideration of a Joint Board meeting with SLVWD

5. Adjournment The meeting adjourned at 4:50 p.m.

4.4-1

Finance and Personnel Committee 04/16/19 4:00 p.m.

District Conference Room 2 Civic Center Drive, Scotts Valley, California

Tele-Videoconference Location (Director Leishman) 5488 Marvell Lane, Santa Clara CA 95054

Meeting Report

1. Convene The meeting convened at 4:02 p.m. in the District Conference Room, 2 Civic Center Drive, Scotts Valley, California

Present: Director Leishman (video conferencing) and Director Reber. Guests: None. Staff: General Manager Harmon (arrived at 4:05 p.m.), Finance and Customer

Service Manager Kurns and Assistant to General Manager Paul.

2. Discussion Items

2.1 Financial Reports for period ending 03/31/19 The Committee reviewed and discussed the financial reports for period ending 03/31/19.

2.2 Proposed FY 2020 Operating and Capital Budget The proposed operating and capital budget was presented and discussed. It will be provided to committee members via email for feedback. In addition to the operating and capital budget, the fund balance projections will be provided in the May board packet.

2.3 Audit RFP Results Proposals were received from 12 firms. Staff reviewed the proposals based on selection criteria and presented the list of top five firms, which will be invited to interviews tentatively scheduled for 05/01/19. Since Director Leishman’s schedule does not allow him to participate in the interviews, the decision was made to ask either Director Stiles or Director Perri to serve on the interview panel.

2.4 Board Compensation Evaluation

4.4-2

The Committee discussed both compensation components, Director's Fees and benefits in the context of the Board Development parameters.

The Committee concluded that the current Directors Fees meet the Board Development objectives and recommend no changes to the current structure and levels. The Committee determined that the need to make possible changes to the benefits (medical, dental, vision and life insurance) should be assessed by the full board and suggested using the following framework for evaluation- benefits/detriments of each five proposals: status quo benefits; benefits with reduced employer payment; benefits with only Director coverage paid by employer; employer paid flat rate amount; no employer paid benefits. The committee requested that staff prepare materials to assist the discussion at the May board meeting.

3. Future Agenda Items Financial Reports for period ending 04/30/19 FY 2020 Draft Budget

4. Adjourn

The meeting adjourned at 5:42 p.m.

4.4-3

Water Resources and Engineering Committee

04/16/19 10:00 a.m. District Conference Room

2 Civic Center Drive, Scotts Valley, California Meeting Report

1. Convene The meeting convened at 10:03 in the District Conference Room, 2 Civic Center Drive, Scotts Valley, California.

Present: Director Ekwall and Director Stiles Guests: Rachel Majors, Nuleaf Tech Staff: General Manager Harmon, Engineering Technician, Operations Manager

McNair, Assistant to General Manager Paul and Water Use Efficiency Coordinator Ravinale.

2. Business Items

2.1 Service Application with Main Extension Agreement Scotts Valley Triplexes Acorn Ct. APN 022-902-12 The Committee reviewed and discussed this item. Action: The Committee recommends Board approval of the service application and

main extension agreement for Scotts Valley Triplexes, Acorn Court, APN 022-902-12.

3. Discussion Items

3.1 Leak Adjustment Program Report The Committee reviewed and discussed the leak adjustment program report.

3.2 Water Efficiency Program Think Twice Rebate Program The Committee reviewed and discussed the Water Efficiency Program Think Twice and the Rebate Program. These items will be presented to the Board at its May meeting.

3.3 Water Supply Outlook Water Year 2019 The Committee reviewed and discussed the Water Supply Outlook Water Year 2019. This item will be presented to the Board at its May meeting.

4. Future Agenda Items WaterSmart Program Update

5. Adjourn The meeting adjourned at 10:55 a.m.

4.4-4

laIKtlSanta Cruz Local Agency

Formation Comm¡ssion701 Ocean Street, Room 318-D

Santa Cruz, Cal¡fornia 95060Phone: (831) 454-2055

Email: [email protected]: www.santacruzlaf co.org

April24,2O19Certified Mail

ChairScotts Valley Water District2 Civic Center Dr.Scotts Valley CA 95066

SUBJECT: CALL FOR NOMINATIONS FOR THE SPECIAL DISTRICT ALTERNATE MEMBERSEAT ON LAFCO

Dear Board Chairperson

The independent special districts in Santa Cruz County have three positions on the LAFCO board. Thecurrent Special District representatives are Jim Anderson (Felton Fire Protection District) and RachélLather (Soquel Creek Water District).

Commissioner Lather, previously LAFCO's Alternate Special District Member, was recently elected to bethe new Regular Special District Member following the departure of T'om LaHue. As a result, the SpecialDistrict Alternate Member seat on LAFCO is now vacant. The purpose of this letter is to solicit nominationsfor the alternate member position.

The term of the alternate position ends on May 3, 2021. The pool of people eligible to apply is anyonewho is on the board of any independent special district in Santa Cruz County. I have attached a form bywhich a board member may apply for the position. An electronic format of the form can be accessed atthe LAFCO website: https://www.santacruzlafco.orq.. The selection process rules are also posted on theLAFCO website (refer to the Policies & Rules webpage).

Please share this memo with other members of your board. The deadline for returning cornpletednominations is 5:00 Þ.m. on June 7. 2019

Also, if you have any preferences rruhether to conduct the election by mail or by a meeting in person,please iet rne know no laterr than Friday, June 7ih.

LAFCO staff is available to answer any questions aþout the selection process.. After June 7, each district'spresiding officer will be sent the nominations, along with an explanation of the voting process.

Sincerely,

Joe A. SerranoExecutive Officer

Enclosure: Nomination Form

4.5-1

LOCAL AGENCY FORMATION COMMISSION OF SANTA CRUZ COUNTYl;fl{lCALL FOR:

SPECIAL DISTRICT ALTERNATE MEMBERNOMINATION PERIOD CLOSES JUNE 7,2019

INSTRUCTIONS:lf you are interested in serving as a special district alternate member on LAFCO, please complete and signthe following application and either mail, hand deliver, or emailform to:

Mailinq address: Email:LAFCO Debra Means, Commission Clerk701 Ocean Street, Room 318-D Santa Cruz CA 95060 [email protected]

ApplicationsmustbereceivedintheLAFcoofficenolaterthan'Thank you for your interest in the Local Agency Formation Commission

NOMINEE INFORMATION:

Name

Mailing Address:

Phone(s): Home: Cell Business

EmailAddress:

District Board on which you currently serve on

Previous Board, Commission, or Committee served

anization Term:

anization Term:

Organization Term:

STATEMENT OF INTEREST:You may attach separate documents, including a brief resumé, to present additional qualifications or providea Statement of lnterest in serving on LAFCO.

CERTIFICATION:I certify that the information provided is true and correct, and I authorize the verification of the information in

the application.

Printed Name of Board Member lnterested in Serving on LAFCO

Signature Date

4.5-2

DIRECTORS COMPENSATION EVALUATION FRAMEWORK

Compensation Considerations from Board Development Guidelines (6/7/18 Board Meeting)

• In alignment with District vision and values • Driven by the expectations to the Directors

o Sense of responsibility and accountability o Prioritization of time

• Support succession planning and reduce barriers to entry • Provide internal parity and external parity

Values - Be adaptable and forward looking - Nurture positivity and collaboration - Strive for efficiencies - Go above and beyond the average level of service

Vision Be a high-performance organization by defying the public agency stereotype and converting problems to solutions

Compensation Components

• Directors Fee • Training/Travel Reimbursement • Health and Welfare Benefits • Retirement Benefit – discontinued

1) Directors Fee

• $35K annually • Necessary or not? • Current structure ($200/$100) or new structure (one level, flat amount)? • Current maximum ($200/day, up to 10 days per month) or change? • Fees established by Ordinance 166-17 pursuant to Water Code 20201-20204

2) Training/Travel Reimbursement

• $10K-$20K annually • Necessary or not? • Current level or change

3) Health and Welfare Benefits

• $61K annually (Current Directors) + $22K annually (Qualified Retired Directors) • Life – keep or change? • Vision – keep or change? • Dental – keep or change? • Medical – keep or change? • Vision, dental, medical for Qualified Retired Directors – keep or change? • Benefits established in Administrative Code

4.6-1

Scotts Valley Water District

Board Development Outline

Purpose

To attract a diverse pool of individuals to serve on the Board of Directors and provide them with appropriate resources to maximize their contributions for the benefit of the District and larger water community.

Expectations to Directors

Anticipated level of commitment, engagement, effort, and energy

Required

• Attend regular (typically monthly) and special Board meetings • Attend Board Committee meetings (typically monthly) as assigned • Attend Board President Retreat • Attend other agency/committee meetings (such as Santa Margarita Groundwater Agency, Scotts

Valley General Plan Advisory Committee, etc.) as assigned • Attend Association of California Water Agencies (ACWA), WateReuse and other industry events (at

minimum 1 per year) • Participate in water-related education and training opportunities

Desired

• Attend ACWA Joint Powers Insurance Authority’s conference as the District’s representative • Get involved in ACWA Region 5 and ACWA committees • Attend community events on behalf of the District

Total anticipated annual time commitment: 12 evening meetings (2 hours each, not counting preparation), 6-12 late afternoon meetings (1 hour each), 1-day meeting (4-8 hours), 1 out-of-town conference (3-4 days), other events and training (1-2 hours each)

Attributes and Qualities of Directors

• Deliberate • Insightful • Flexible/Adaptive • Empathetic • Analytical

• Dedicated • Respectful • Community minded • Consensus builder

Compensation Considerations

• In alignment with District vision and values • Driven by the expectations to the Directors

- Sense of responsibility/accountability - Prioritization of time

• Support succession planning and reduce barriers to entry • Provide internal parity and external parity

4.6-2

Directors Compensation Survey Summary March 2019

• 25 agencies surveyed o 16 water districts, 4 community services districts, 2 sanitary districts, 1 fire district, 1

school district, 1 city o 7 counties (from Marin to Monterey) – similar cost of living o Comparable agency sizes

• Directors Fees o 23 agencies pay meeting stipend, 2 agencies do not compensate at all o Fees range from $50 to $226 per meeting, for water districts $50 to $200 per meeting o 13 agencies pay $100 per meeting, 5 agencies < $100, 4 agencies $200 or more o 3 agencies have monthly flat fees ($235, $250 and $489) o Monthly maximum ranges from $0 to $2,000

• Health Benefits o 7 agencies offer some time type of health benefit, 18 do not o 3 agencies pay 100% of premiums for family coverage, 1 agency 90% of premiums for

family coverage, 2 agencies 100% of individual coverage and 1 agency flat dollar amount

4.6-3

AGENDA REPORT Scotts Valley Water District

Date: 05/09/19


Item: Consent 5.1

Subject: Service Application with Main Extension Agreement: Lennar Homes California, LLC – Lennar Homes Affordable Housing, APN 022-902-12

Reason: Complies with SVWD Administrative Code, Section 5.30.020

SUMMARY Recommendation: Approve the terms and authorize the General Manager to execute the Main Extension Agreement for the Lennar Homes Affordable Housing development (APN 022-902-12).

Fiscal Impact: The engineering estimate for the to-be-built water system is $54,000 that will be booked as District’s asset after the completion of the project. Connection fee revenue from this project is estimated to be approximately $83,963. Expected water sales revenue after the completion of the project and at full occupancy is in the range of $4,600-$5,200/year.

Previous Related Action: On 04/16/19, the Water Resources and Engineering Committee reviewed the project specifications and conditions and recommended the approval of the Main Extension Agreement.

BACKGROUND The property in discussion at Acorn Ct. is a vacant property that has been under consideration for development. The District has reviewed the plans and project specifications and provided comments to be included in the City’s Conditions of Approval.

DISCUSSION The owner, Lennar Homes California, LLC is proposing to build two (2) Tri-Plexes. The owner will be required to construct a water system comprising of approximately 230 linear feet (LF) of 8-inch (8”) potable water main valued at $54,000.

In total, the project will require water services consisting of six (6) five-eighths inch (5/8”) domestic service connections, one (1) five-eighths inch (5/8”) recycled water landscape service connections, two (2) four-inch (4”) fire service connections, and one (1) fire hydrant.

As part of the Main Extension Agreement, the project will be subject to the following conditions:

5.1-1

1) Project grading and site improvements to be designed scheduled and constructed to meet the District’s requirements; potable and recycled water mains to be constructed in accordance with District’s standard specifications and will become the property of the District upon completion of construction.

2) Construction and installation of fire hydrants that will become the property of the District upon completion of construction.

3) Installation of the recycled water system, all landscaped areas to be irrigated with recycled water.

4) Owner is responsible for the management and supervision of the recycled water system in accordance with the Scotts Valley Water District Recycled Water Rules and Regulations.

The demand projections for potable water for the development are estimated to be about 320,000 gallons per year (GPY) that amounts to 0.07% of the current system demand. The demand projections for recycled water are estimated to be about 135,000 gallons per year (GPY) that amounts to 0.26% of the current system demand.

The revenue estimation for the connection fees is based on the fee schedule in effect 12/13/18. The projected future water sales revenue is based on the rate schedule effective 12/13/18.

Submitted,

Piret Harmon General Manager

5.1-2


Date: 05/09/19


Item: Consent 5.2

Subject: 2019 Water Supply Outlook

Reason: Supports District Mission

SUMMARY Recommendation: Receive information

Fiscal Impact: None

Previous Related Action: On 04/12/18 the Board established Stage 1 Water Supply Conditions for Water Year 2018.

On 04/16/19 the Water Resources and Engineering Committee received an updated report on the 2019 Water Supply Outlook and directed staff to present the report to the board.

BACKGROUND The District’s Water Shortage Contingency Plan (WSCP) is included in its 2015 Urban Water Management Plan. The Water Shortage Contingency Plan stipulates a four-stage demand reduction plan with the amount of rainfall in a given year or series of years being the basis for defining the stages of action. The stages of action were evaluated based on the results of the numerical model in support of the overall management of the groundwater basin. In addition to the precipitation-based triggers, the plan suggests groundwater level adjustment to the triggers. For all stages, the spring groundwater levels are collected and evaluated relative to historic lows between 2003 and 2013. Demand reduction stages may be adjusted up or down based on this evaluation.

The Scotts Valley area, similarly to the rest of the State of California, experienced an extended period of drought in 2012 through 2015 when the cumulative rainfall reached 67% of the average. WY 2016 yielded average precipitation levels, WY 2017 received with almost double of the normal rainfall amount and WY 2018 ended only with 57% of the average.

DISCUSSION While the first 3 months of the water year showed the signs of a dry year with only 19% of average precipitations at the end of December, the months of January and February turned this around.

5.2-1

WATER SUPPLY CONDITION - AS OF APRIL 30, 2019

2016 2017 2018 2019 2016 2017 2018 2019 3-year 2-year

Stage 1 42.13 42.65 80.14 24.26 40.4 101% 190% 58% 96% 77% 96%

Stage 2 42.13 42.65 80.14 24.26 40.4 101% 190% 58% 96% 115% 77% 96%

Stage 3 42.13 42.65 80.14 24.26 40.4 101% 190% 58% 96% 115% 77% 96%

Stage 4 42.13 42.65 80.14 24.26 40.4 101% 190% 58% 96% 115%

Cumulative rainfall over 2 years < 70% of average and/or Single year rainfall < 60% of averageCumulative rainfall over 3 years < 50% of average and/or Single year rainfall < 50% of averageStage 3 water supply conditions based on precipitation with groundwater levels below

Average Rainfall

Rainfall (inches) Rainfall (percent of average) Cumulative Single Year

Cumulative rainfall over 2 years < 80% of average and/or Single year rainfall < 75% of average

Total rainfall amount of 40.4 inches from the period 10/01/18, to 04/30/19, indicates a Stage 1 of the demand reduction plan. Stage 1 demand target is 1,201 AFY. The District potable system demand in the last year 4 years has ranged from 1,104 AFY to 1,164 AFY and we expect the trend of flat demand to continue.

WY 2019 Demand Projection I Projected system demand increase 3% (WY 2017 level)WY 2019 Demand Projection II Projected system demand flat (WY 2018 level)

WY 2013 Actual

WY 2014 Actual

WY 2015 Actual

WY 2016 Actual

WY 2017 Actual

WY 2018 Actual

WY 2019 Projected - Scenario

I

WY 2019 Projected - Scenario

IIPotable System Demand 1,401 1,294 1,107 1,104 1,164 1,130 1,164 1,130Stage 1 Demand Target 1,201 1,201 1,201 1,201 1,201 1,201 1,201 1,201Stage 2 Demand Target 1,134 1,134 1,134 1,134 1,134 1,134 1,134 1,134Stage 3 Demand Target 1,068 1,068 1,068 1,068 1,068 1,068 1,068 1,068

Based on the 2018 Annual Groundwater Report (Montgomery & Associates), the groundwater levels in Scotts Valley Groundwater Management Area are showing slow but consistent recovery trends. Despite that the WY 2018 rainfall being only 58% of the average making WY 2018 one of eight of the past twelve years with below average precipitation, Lompico aquifer levels have increased up to 15 feet over the past two years.

5.2-2

Groundwater supply is notably less sensitive to yearly fluctuations in precipitation that surface water resource. Groundwater levels are influenced more rapidly by pumping than by response to rainfall. Total potable system demand in WY 2018 was 379 MG (million gallons) or 1,130AF (acre-feet), which is 17% lower than WY 2013 demand of 457MG/1,401AF and 30% less than WY 2008 demand of 542MG/1,665AF. Another noteworthy aspect to keep in mind is that having precipitations to occur later in the season tends to naturally curtail the demand due to the reduced irrigation needs.

Considering all factors, the staff concludes that the goal for WY 2019 is to maintain the current consumption levels, continue water use efficiency programs and boost education and outreach on water supply and groundwater conditions.

Submitted,

Piret Harmon General Manager

5.2-3


Date: 05/09/19


Item: Business 7.1

Subject: Water Use Efficiency Program Think Twice Update and Rebate Program Update

Reason: Supports Strategic Goal No. 1 Water Resource Management by achieving maximum feasible water conservation and efficient use

SUMMARY Recommendation: 1) Approve the Think Twice Water Use Efficiency Program Update; and 2) Approve the Rebate Program Update.

Fiscal Impact: Updates to the Think Twice Program activities will not result in direct cost for 2019 summer season. Changes to the Rebate Program are estimated to cost an additional $2000 per year. The funds are either available in FY 2019 budget or appropriated in the proposed FY 2020 budget.

Previous Related Action: On 05/17/18 the Board approved the Water Use Efficiency Program Think Twice 2018 Update.

On 04/16/19 the Water Resources and Engineering Committee reviewed the proposed updates to the Water Use Efficiency Program Think Twice and Rebate Program. The committee recommended the approval of both program changes.

BACKGROUND The District has been persistently and continuously promoting water use efficiency for years. Total system demand has decreased from 593 MGY (million gallons per year) in water year (WY) 2008 to 432 MGY, a drop of 27%. The potable system has experienced a 32% reduction in the same time period, despite moderate population growth.

DISCUSSION Every spring, the District staff assesses the water supply conditions, evaluates the demand and determines if any updates are necessary to its Water Use Efficiency and Rebate Programs. Some relatively minor changes to both programs are proposed in 2019. Submitted,

7.1-1

Piret Harmon General Manager Enclosed: Think Twice Water Use Efficiency Program (5-2019 Update) Rebate Program (5-2019 Update)

7.1-2

Program

Type of Program: Water Use Efficiency

Program Title: Think Twice

Program Description:

Establishes a set of activities to support the District’s long-term sustainable water supply planning efforts

Approved Date: 5/9/2019 Last Review Date: 5/17/2018

Next Review Date: 5/2020 The program outlines a multi-pronged approach that increases awareness about indoor and outdoor water use efficiencies, promotes water efficient behaviors, and continuously reduces water waste. Program components:

1) Education & Outreach - Free house calls to provide consultation and devices for efficient water use - District participation in county-wide conservation coalition activities - Public speaking and local media placements - Irrigation scheduling guidelines - Pre-rinse spray valve project - repeat in five years (2023) - Community outreach at Scotts Valley Farmers Market, and/or other events

2) Rebates

Rebates on a variety of activities and equipment and free devices, which enhance water use efficiencies, that are available to District’s customers in good standing (see Rebate Program).

3) Water Waste Policy

Implementation and enforcement of the District Policy on Water Waste (P500-15-1)

4) Water Targets for Potable Landscape Accounts Evaluate feasibility and effectiveness of a program that sets water targets for landscape customers.

7.1-3

Program

Type of Program: Water Use Efficiency

Program Title: Rebates

Program Description: Establishes guidelines for indoor and outdoor water efficiency rebates

Approved Date: 5/9/2019 Last Review Date: 4/13/2017

Next Review Date: n/a

Available to District potable water service customers in good standing who meet guidelines. Rebates may be carried out as account credit and/or cash rebate. Annual budget appropriations are used as default program funding limits unless Board approves maximum allowances for specific rebates or for the overall program. Before purchasing any materials or labor for rebates, it is the customer’s responsibility to contact the District (website, email or phone) for specific eligibility requirements.

Lawn or Impervious Hardscape (including Pools) Replacement - $1.00 per square foot For replacement of existing irrigated lawn or impervious surface material such as concrete, asphalt and in-ground pools or spas, with any combination of low water use plants, mulch, artificial turf, or pervious hardscape. Existing high-volume irrigation must be permanently disabled or converted to low volume or sub-surface irrigation. District will also consider low water turf blends or low water groundcover if paired with subsurface or rotary small-stream spray irrigation. Spray Irrigation Replacement - $0.50 per square foot For replacement of existing high-volume sprinkler system with low-volume irrigation such as drip, micro- spray, or bubbler emitters. Sprinkler valves and heads no longer in use must be removed and glue- capped. Low volume and high-volume irrigation may not be mixed on the same valve. Spray to Rotator Nozzle Replacement - $10 each For replacement of existing high-volume overhead sprayers with small stream rotary/rotator nozzles. Existing sprayhead body must be same manufacturer as new rotator nozzle and zone cannot mix high and low volume nozzles. Greywater Irrigation – up to $150 per fixture Showers, bath tubs, and washing machines accepted if installed to current California Universal Plumbing Code (CA UPC) standards.

7.1-4

Scotts Valley Water District Program Rebates Page 2 of 2

Rainwater Cistern - $0.25 per gallon of cistern for up to $750 per account Cisterns may not be connected to a potable water supply, including irrigation lines. All systems must follow current CA Universal Plumbing code, local zoning and permitting laws.

Downspout Diversion - $75 each with up to 4 per account Overflow to be directed to an on-site landscape feature such as rain garden, swale, dry well, dry creek bed, infiltration basin, etc.

Pressure Regulator - $50 each with up to 2 per account every 5 years

Toilet $125 for replacing a toilet flushing more than 1.6 gpf with one that flushes 1.0 gpf or lower $100 for replacing a toilet flushing more than 1.6 gpf with one that flushes 1.28 gpf (or the current Cal Green building code standard) $50 for replacing a toilet flushing 1.6 gpf with one that flushes lower than 1.28 gpf $25 for replacing a toilet flushing 1.6 gpf with one that flushes 1.28 gpf

New toilets must be EPA WaterSense Certified.

Urinal - $75 for replacing any urinal requiring water with a waterless urinal

7.1-5


Date: 05/09/19


Item: Business 7.2

Subject: FY 2020 Proposed Budget Summary

Reason: Supports District Strategic Goal No. 3 Financial Stewardship by managing the Dis-trict’s financial resources in a responsible manner

SUMMARY Recommendation: Receive information and provide direction

Fiscal Impact: The Fiscal Year 2020 (FY 2020) proposed budget includes $9.9 Million in expendi-tures, excluding carryover for projects and purchase orders. The total proposed budget is com-prised of $6.1M in operating expenses, $0.7M in debt service, and $3.1M in new project appro-priations.

FY 2020 operating costs, excluding debt service, are proposed to increase by 2%. The proposed operating budget includes $0.37M for contributions to the Santa Margarita Groundwater Agen-cy (SMGWA) and the conjunctive regional water supply initiative. Excluding these contribu-tions, the FY 2020 proposed budget is up 5% from the prior year.

On the revenue side, the proposed budget reflects the rate increases approved as part of the 2016 Comprehensive Rate and Fee Study. Total revenue, excluding Notes Receivable, is pro-jected to increase by 10% to $9.2M. Given the projected revenue and proposed expenditures, including project carryover of $1.0M, it is anticipated that there will be an approximately $0.9M draw on fund balance in FY 2020.

Previous Related Action: On 03/25/19, the Finance and Personnel Committee received a re-port on the FY 2020 budget assumptions.

On 03/28/19, the Water Resources and Engineering Committee reviewed and commented on the proposed projects budget.

On 04/11/19, the Board was presented the FY 2020 draft work plan, budget assumptions and the proposed capital and maintenance projects budget.

7.2-1

On 04/16/19, the Finance and Personnel Committee reviewed the draft FY 2020 budget sum-mary.

BACKGROUND District follows an annual budget cycle with a balanced budget adopted at the June board meeting. The Budget comprises of the Operating Budget, Debt Service Budget and Projects Budget. The Operating Budget is a line item budget that is organized in functional divisions and major expense categories.

DISCUSSION FY 2020 proposed budget focuses on the District’s operations, allocating personnel, goods, and services to support the District’s services and the Board’s strategic priorities.

FY 2020 proposed expenditure budget is comprised of operating, debt service, and projects. The proposed budget also includes revenue projections and fund balance projections. The FY 2020 operating budget is a line item budget, organized by functional divisions and major ex-pense categories. Overall operating costs excluding debt service are up 2. The budget for debt service reflects the required payments on the 2016 Installment Purchase Agreement.

Attachment 1 presents a summary of year-to-year operating changes. Note that staff has re-structured the operating division budgets for Finance/Customer Service (Department 200) and Water Use Efficiency (Department 500). FY 2020 figures reflect a shift of the Water Use Effi-ciency budget into the Finance/Customer Service budget.

The District collects revenue from Potable Water (PW) and Recycled Water (RW) sales, PW and RW services, new connections, as well as several non-operating revenues such as property tax, loan repayments, and interest income. Staff projects a 10% increase in revenue in FY 2020, ex-cluding Notes Receivable. This figure is comprised of 13% growth in the Potable Water Fund and an 18% decrease in the Recycled Water Fund, driven primarily by project funding sources. Attachment 2 presents a summary of anticipated revenue by fund.

The Fund Balance table in Attachment 3 summarizes the anticipated draw on reserves of $0.9M. The fund balance projection reflects estimated actuals for FY 2019 rather than budget, to provide a more accurate estimate of the expected fund balance at June 30th of this year. The Projects Budget amounts reflect the District’s ‘Capital and Maintenance Projects FY 2020-2024 Projections’ which was presented to the Board on 04/11/19.

The Fund Balance Projection Charts in Attachment 4 help to show the projected fund balance by year for the next four years, using assumptions for revenue growth (from changes in de-mand), project timing, and pay-as-you-go vs. pay-as-you-use financing for the Purified Recycled Water Recharge project.

7.2-2

The final FY 2020 Proposed Budget will be presented to the Board for approval at the June meeting.

Submitted,

Piret Harmon General Manager Attachments: FY 2020 Proposed Budget: Expense FY 2020 Proposed Budget: Revenue

FY 2020 Projected Fund Balance Fund Balance Projection Charts

7.2-3

Scotts Valley Water DistrictFY 2020 Proposed Budget: Operating Expenses & Debt ServiceCombined Fund 01 and Fund 02

Expense Categories FY 2019Budget

FY 2019Est. Actual

FY 2020Budget

AdministrationSalaries & Benefits 516,744$ 522,826$ 572,424$ 55,680$ 11%Services 322,645$ 281,962$ 322,435$ (210)$ 0%Supplies 15,100$ 14,500$ 17,550$ 2,450$ 16%Source of Supply 498,341$ 298,451$ 381,821$ (116,520)$ -23%Dept (100) Expense Total: 1,352,830$ 1,117,739$ 1,294,230$ (58,600)$ -4%

Finance/Customer Service *Salaries & Benefits 393,680$ 374,861$ 539,323$ 145,643$ 37%Services 185,300$ 140,523$ 168,304$ (16,996)$ -9%Supplies 3,000$ 1,000$ 9,000$ 6,000$ 200%Customer Accounts 94,120$ 103,966$ 180,084$ 85,964$ 91%Other 1,000$ 989$ 1,000$ -$ 0%Debt Service 559,312$ 563,535$ 653,746$ 94,434$ 17%Dept (200) Expense Total: 1,236,412$ 1,184,874$ 1,551,457$ 315,044$ 25%

OperationsSalaries & Benefits 1,505,172$ 1,537,290$ 1,593,423$ 88,251$ 6%Services 186,770$ 158,139$ 192,400$ 5,630$ 3%Supplies 30,500$ 37,909$ 30,500$ -$ 0%General Production 84,000$ 89,217$ 86,100$ 2,100$ 2%Source of Supply 80,000$ 80,000$ 130,000$ 50,000$ 63%Pumping 366,000$ 354,761$ 375,660$ 9,660$ 3%Water Treatment 439,750$ 374,253$ 448,000$ 8,250$ 2%Transmission & Distribution 131,000$ 122,387$ 134,100$ 3,100$ 2%Conservation 2,000$ 2,000$ 2,000$ -$ 0%Other -$ 132,429$ -$ -$ Dept (300) Expense Total: 2,825,192$ 2,888,385$ 2,992,183$ 166,991$ 6%

EngineeringSalaries & Benefits 94,766$ 86,824$ 94,690$ (76)$ 0%Services 97,430$ 61,710$ 90,210$ (7,220)$ -7%Supplies 1,000$ -$ 1,000$ -$ 0%Dept (400) Expense Totals: 193,196$ 148,534$ 185,900$ (7,296)$ -4%

Water Use Efficiency (WUE)Salaries & Benefits 112,455$ 101,281$ -$ (112,455)$ -100%Services 38,500$ 6,207$ -$ (38,500)$ -100%Supplies 56,500$ 26,383$ -$ (56,500)$ -100%Dept (500) Expense Totals: 207,455$ 133,872$ -$ (207,455)$ -100%

BoardSalaries & Benefits 130,569$ 107,570$ 119,062$ (11,507)$ -9%Services 16,400$ 15,400$ 20,538$ 4,138$ 25%Supplies 250$ 175$ 850$ 600$ 240%Dept (900) Expense Totals: 147,219$ 123,145$ 140,450$ (6,769)$ -5%

Total Expenses 5,962,304$ 5,596,548$ 6,164,220$ 201,916$ 3%Total Expenses excluding SMGWA 5,463,963$ 5,298,097$ 5,782,399$ 318,436$ 6%Total Expenses excluding Debt Service

5,402,992$ 5,033,013$ 5,510,474$ 107,482$ 2%

Total Expenses excluding SMGWA & Debt Service

4,904,651$ 4,734,563$ 5,128,653$ 224,002$ 5%

* Includes Water Use Efficiency in FY 2020

FY 2020 Budget to FY 2019 Budget

Incr / Decr

7.2-4

Scotts Valley Water DistrictFY 2020 Proposed Budget: RevenueFund 01 and Fund 02

Revenue Categories FY 2019Budget

FY 2019 Est. Actual

FY 2020Budget

Potable Fund 01Oper Revenue - Water Sales 4,037,565$ 3,843,304$ 4,061,787$ 24,222$ 1%Oper Revenue - Water Services 1,901,820$ 1,883,881$ 2,065,955$ 164,135$ 9%Oper Revenue - New Connections 667,047$ 601,193$ 1,468,130$ 801,083$ 120%Non-Oper Revenue - Other 936,268$ 914,066$ 941,072$ 4,804$ 1%Total Potable Fund Revenues 7,542,700$ 7,242,444$ 8,536,945$ 994,245$ 13%

Recycled Fund 02Oper Revenue - Water Sales 504,216$ 496,049$ 490,177$ (14,039)$ -3%Oper Revenue - Water Services 29,461$ 29,461$ 45,124$ 15,663$ 53%Oper Revenue - New Connections 11,896$ 12,934$ 90,869$ 78,973$ 664%Non-Oper Revenue - Other 266,578$ 9,878$ 7,598$ (258,980)$ -97%Notes Receivable * 161,639$ 161,784$ 163,019$ 1,380$ 1%Total Recycled Fund Revenues 973,790$ 710,106$ 796,787$ (177,003)$ -18%

Combined Fund 01 and Fund 02Oper Revenue - Water Sales 4,541,781$ 4,339,353$ 4,551,964$ 10,183$ 0%Oper Revenue - Water Services 1,931,281$ 1,913,342$ 2,111,079$ 179,798$ 9%Oper Revenue - New Connections 678,943$ 614,127$ 1,558,999$ 880,056$ 130%Non-Oper Revenue - Other 1,202,846$ 923,944$ 948,670$ (254,176)$ -21%Notes Receivable * 161,639$ 161,784$ 163,019$ 1,380$ 1%Total Revenue 8,516,490$ 7,952,550$ 9,333,732$ 817,242$ 10%

* Notes Receivable, included to reflect all sources of cash, is not a revenue.

FY 2020 Budget to FY 2019 Budget

Incr / Decr

7.2-5

SCOTTS VALLEY WATER DISTRICTFY 2020 Proposed BudgetFund Balance Projection

FY 2018 Potable Fund 01

Recycled Fund 02

Combined Fund 01 and

Fund 02 Current Assets (excluding notes receivable): 3,154,785$ 82,027$ 3,236,812$ Current Liabilities (excluding debt principal): (405,568)$ (155,959)$ (561,527)$ Audited Fund Balance 6/30/2018: 2,749,217$ (73,932)$ 2,675,285$

FY 2019 (Estimated Actual)Audited Fund Balance 6/30/2018: 2,749,217$ (73,932)$ 2,675,285$ Revenue 7,242,444$ 548,322$ 7,790,766$ Notes Receivable -$ 161,784$ 161,784$ Operating Expense (4,495,775)$ (537,238)$ (5,033,013)$ Debt Service (341,953)$ (221,582)$ (563,535)$ Project Costs (1,073,189)$ (95,000)$ (1,168,189)$ Increase/(Decrease) of Fund Balance 1,331,527$ (143,714)$ 1,187,813$

Transfer from Fund 01 to Fund 02 (217,646)$ 217,646$ -$ Projected Fund Balance 6/30/2019 3,863,098$ -$ 3,863,098$

FY 2020 (Proposed Budget)Projected Fund Balance 6/30/2019 3,863,098$ -$ 3,863,098$ Revenue 8,536,945$ 633,768$ 9,170,713$ Notes Receivable -$ 163,019$ 163,019$ Operating Expense (4,992,599)$ (517,875)$ (5,510,474)$ Debt Service (396,728)$ (257,018)$ (653,746)$ Project Budget Request (2,762,000)$ (300,000)$ (3,062,000)$ Project Carryover (813,000)$ (225,000)$ (1,038,000)$ Increase/(Decrease) of Fund Balance (427,382)$ (503,106)$ (930,488)$

Transfer from 01 Fund to 02 Fund (503,106)$ 503,106$ -$ Projected Fund Balance 6/30/2020 2,932,610$ -$ 2,932,610$

Debt Service Coverage Ratio for FY 2019 4.68 Debt Service Coverage Ratio for FY 2020 5.37 Debt Service Coverage Ratio for FY 2020 excluding revenue from new connections 2.98

7.2-6

Scotts Valley Water DistrictFY 2020 Proposed BudgetFund Balance Projection Charts4/25/2018 Assumptions:

Rate Incr (1st Half) 10% 10% 10% 3%Rate Incr (2nd Half) 10% 10% 3% 3%

Water Sales increases 0% 0% 0% 0%Water Services increases 1% 1% 1% 1%

Inflation 3% 3% 3% 3%

FY 2018 ActualsFY 2019

Est. ActualsFY 2020

BudgetFY 2021

ProjectionFY 2022

ProjectionFY 2023

ProjectionWater Sales & Water Services 5,633,199$ 6,252,695$ 6,663,043$ 7,329,347$ 7,805,755$ 8,039,928$ New Connections 637,422$ 614,127$ 1,558,999$ 1,249,897$ 1,012,925$ 454,519$ Non-Operating Revenue 1,244,459$ 1,085,728$ 1,111,689$ 1,097,600$ 985,378$ 1,018,909$ Grants and Third Party Revenue 312,000$ 850,000$ 3,250,000$ 3,250,000$ Total Revenue 7,515,080$ 7,952,550$ 9,645,731$ 10,526,844$ 13,054,058$ 12,763,356$ Operating Expenses 5,100,145$ 5,033,013$ 5,510,474$ 5,675,788$ 5,846,062$ 6,021,444$ Debt Service (P+I) 1,020,560$ 563,535$ 653,746$ 648,409$ 732,564$ 729,375$ Project Expenses 2,346,822$ 1,168,189$ 4,100,000$ 2,488,000$ 7,189,000$ 7,240,000$ Total Expenses 8,467,527$ 6,764,737$ 10,264,220$ 8,812,197$ 13,767,626$ 13,990,819$

(952,447)$ 1,187,813$ (618,489)$ 1,714,647$ (713,568)$ (1,227,463)$

Beginning Fund Balance 3,789,371$ 2,836,924$ 4,024,737$ 3,406,248$ 5,120,895$ 4,407,327$ Ending Fund Balance 2,836,924$ 4,024,737$ 3,406,248$ 5,120,895$ 4,407,327$ 3,179,864$ Project CF 2,346,822$ 1,168,189$ 2,050,000$ 3,294,000$ 4,838,500$ 7,214,500$ Alt Ending Fd Balance (952,447) 1,187,813 1,431,511 908,647 1,636,932 (1,201,963) Cash Flow Balance 2,836,924 4,024,737 5,456,248 6,364,895 8,001,827 6,799,864

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

FY 2018 Actuals FY 2019Est. Actuals

FY 2020Budget

FY 2021 Projection FY 2022 Projection FY 2023 Projection

7.2-7

Scenario - Debt Financing for 50% of Purified Recycled Water Recharge Project

4/25/2018 Assumptions:Rate Incr (1st Half) 10% 10% 10% 3%

Rate Incr (2nd Half) 10% 10% 3% 3%Water Sales increases 0% 0% 0% 0%

Water Services increases 1% 1% 1% 1%Inflation 3% 3% 3% 3%

FY 2018 ActualsFY 2019

Est. ActualsFY 2020

BudgetFY 2021

ProjectionFY 2022

ProjectionFY 2023

ProjectionWater Sales & Water Services 5,633,199$ 6,252,695$ 6,663,043$ 7,329,347$ 7,805,755$ 8,039,928$ Development Revenue 637,422$ 614,127$ 1,558,999$ 1,249,897$ 1,012,925$ 454,519$ Non-Operating Revenue 1,244,459$ 1,085,728$ 1,111,689$ 1,097,600$ 985,378$ 1,018,909$ Grant Revenue -$ -$ 312,000$ 850,000$ 3,250,000$ 3,250,000$ Debt Financing -$ -$ 10,000,000$ -$ Total Revenue 7,515,080$ 7,952,550$ 9,645,731$ 10,526,844$ 23,054,058$ 12,763,356$ Operating Expenses 5,100,145$ 5,033,013$ 5,510,474$ 5,675,788$ 5,846,062$ 6,021,444$ Debt Service (P+I) 1,020,560$ 563,535$ 653,746$ 648,409$ 732,564$ 1,465,193$ Project Expenses 2,346,822$ 1,168,189$ 4,100,000$ 2,488,000$ 7,189,000$ 7,240,000$ Total Expenses 8,467,527$ 6,764,737$ 10,264,220$ 8,812,197$ 13,767,626$ 14,726,636$

Beginning Fund Balance 3,789,371$ 2,836,924$ 4,024,737$ 3,406,248$ 5,120,895$ 14,407,327$ Ending Fund Balance 2,836,924$ 4,024,737$ 3,406,248$ 5,120,895$ 14,407,327$ 12,444,046$ Project Cash Flow 2,346,822$ 1,168,189$ 2,050,000$ 3,294,000$ 4,838,500$ 7,214,500$ Alt (952,447)$ 1,187,813$ 1,431,511$ 908,647$ 11,636,932$ (1,937,781)$ Cash Flow Balance 2,836,924$ 4,024,737$ 5,456,248$ 6,364,895$ 18,001,827$ 16,064,046$

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

FY 2018 Actuals FY 2019Est. Actuals

FY 2020Budget

FY 2021 Projection FY 2022 Projection FY 2023 Projection

7.2-8


Date: 05/09/19


Item: Business 7.3

Subject: Contract for Professional Audit Services

Reason: Supports District Strategic Goal No. 3 Financial Stewardship by managing the District’s financial resources in a responsible manner

SUMMARY Recommendation: Authorize the General Manager to execute an agreement with Nigro & Nigro PC to provide professional audit services for the fiscal years ending June 30, 2019, 2020, and 2021 with an option to renew the agreement for three (3) additional one-year periods.

Fiscal Impact: Contract costs of $15,500 / year will be incurred in FY 2020, 2021, and 2022.

Previous Related Action: On 02/25/19, the Finance and Personnel Committee reviewed the proposed Request for Proposals (RFP) timeline and confirmed that they would participate in the interview process.

On 04/16/19, the Finance and Personnel Committee received a report on the proposals.

BACKGROUND After determining that it would be desirable to engage a new audit firm to replace the existing audit firm which had been providing services for the previous six years, the Finance and Personnel Committee directed staff to conduct a search for the replacement firm.

DISCUSSION Thirteen (13) proposals were received with one (1) arriving after the deadline, leaving twelve (12) proposals for consideration. After a thorough review of the proposals, five (5) firms were chosen for the interviews. Based on the interviews and the submitted materials, Nigro & Nigro was selected as the top candidate and the best fit for providing professional audit services for the District. For reference, their proposal is enclosed.

Submitted,

Piret Harmon General Manager Enclosed: Nigro & Nigro Audit Services Proposal

7.3-1

PROPOSAL FOR PROFESSIONAT AUDIT SERVICESScotts Valley Water District

For the Fiscal Years Endingfune 30,20I9-2O2t

(with option to extend three additional years)

l{rPC

Re sp ectfu þ S ubmitte d by :Paul f. Kaymark, CPA

Nigro & Nigro, PC

[email protected] offÏce: 25220 HancockAve. Suite 400, Murrieta, cA 92562. P: (951J 698-8783 . F: (9511 699-1,064OaklandOffÏce:333HegenbergerRd.,Suite388,Oakland,CA9462t.P:[844]557-31L1.F:(844J557-3444

7.3-2

TABLE OF CONTENTS

Transmittal Lelter

Firm Qualifications & ExperienceStatement of IndependenceLicense to Practice in CaliforniaExperience

7

3

3

3

4+

Size and Location of OfficesSize of Our Firm

Supervisory ancl Staff Qualificalions & ExperienceMeet Your Audit Leadership Team 5

Staff ContinuityResumésTrainins & Resources 10

SimilarEngagementswith0therSpecialDistricts11

Total All-lnclusive Maximum Price

5

6

13

Add itional InformationSpecific Audit ApproachSegmentation of

1415

Fraud Hotìine 76

7.3-3

a

a

Thought Leadership. Members of our firm have been actively involved as presenters in numerousindustry conferences and programs, including the ACSA Professional Development Committee,CASBO, CSBA, CSDA, and CSMFO. We have incorporated our experience with these committees intoour audit framework.

Engagement Team. We know that quaìity people drive quality results, which is why our commitmentto you starts with the engagement team members who are selected based on their experience, focuson serving local government agencies, and who are the best fit for you. Each of the Agency'sengagementteam members have completed and exceeded the mandatory requirement for continuingprofessional education hours as requested in the RFP. Paul Kaymarþ Partner, will be the main contactfor the Agency regarding this project.

A Focus on Providing Consistent, Dependable Service to Government Entities. Nigro & Nigro isorganized by industry affording our clients with industry-specific expertise supplemented byvaluable local service and insight. Therefore, the Agency will enjoy the service of members of ourGovernmental Audit Services Team who have experience with similar governmental entities andunderstand the issues and environment critical to you. You will not have to train our auditors.

You may have many options in selecting a professional audit firm. By choosing Nigro & Nigro, you will gainvalue-added accounting and operational insights. We are the right fit for the DistricÇ as we have the expertiseand depth of resources within our firm to offer you exceptional service while maintaining a sincere and honestrelationship. We understand the work, we are committed to meeting your deadlines, and we would like theopportunity to be your auditors. We also commit to meeting or exceeding your expectations.

Thank you once again for the opportunity to present our qualifications. Ifyou have any questions about ourofferings, please do not hesitate to contact me.

Sincerely,

a

*._. -.,_.-__.Þ

t

Paulf. Kaymarh CPA

Audit Services Partner

cPA Governmental' Audit Ouality Center

2

7.3-4

FIRM QUALIFICATIONS & EXPERIENCE CONTINUED

Size and Location of Offices

The firm was originally established in 1999. In 2013, we opened oursecond office in Northern California in order to better serve our growingclient base ofschool districts in the San Francisco Bay Area. The Firm nowhas five partners and a professionaì staff of 19 accountants and expectsto add more in the coming years as we continue to grow. We are a fullservice firm, providing audit and review, ta& consulting, and accountingservices to local government, non-profit organizations, charter schools,commercial businesses and homeowners' associations. The office servesclients of all sizes and industries, however, we focus on governmentagencies, just like yours.

4t

MURRTETA OnrrcE Oerleruo OpprcE

Size of Our Firm

Firm-wide, we have the following staffing for our governmental audit services:

Partner*Manager

SupervisorSenior

AssociatesSupport Staff

Total

aAlthough the term "partner" is used throughout this proposal to avoid confusion, the firm is organized as a Professional Corporatíon, and the

firm's owners are "shareholders."

5

1.

3

5

4

z

20

5

1.

1

1

B

We are prepared to do whatit takes to provide the extralevel ofservice required to

maintain a long-termb usi ness rel a tio nshi p.

PROPOSAL FOR AUDITING SERVICES I 4

7.3-5

Paul f. Kaymark, CPA

Lead Audit Partner

Paul recently joined the firm after more than 24 years of previouspublic accounting and auditing governmental entities experience. Paulis our choice for new governmental audit cìients, having extensiveexperience in the areas of governmental entities. His mainresponsibilities include assistance in the preliminary planning of auditwork, review of assistants' work, and performing audit procedures inmore complex audit areas.

Mr. Kaymark has been working on audit engagements of governmentalagencies, not-for-profit organizations, as well as for-profit corporationsand companies. His previous experience includes audit and consultingwork for large and small businesses with a focus on client service. Paulstrives to build strong relationships with his clients by assisting themwith any emerging issues and being available as a resource.

Mr. Kaymark has experience in a variety of governmental issues,garnered from his auditing experience over the years. He regularlyconsults with clients in areas of:

¡ Internal controls. Financial reporting. Annual report offinancial transactions

. Year-end closing procedures

. Cash flows

. Budgct dcvclopmcnt and projcctions

. Multi-Year projectionsr Pension and OPEB accounting

. Palmdale Water District

. Mojave Water Agency¡ Western Municipal Water Districto El Toro Water Districto East Orange County Water Districto Trabuco Canyon Water District

GovernmentalAudit Quality Center

Bachelor of Science, BusinessAdministration, AccountancyCalifornia State University, Long Beach

t994

. Certified Public Accountant, California

. GFOA Certificate for Excellence inFinancial Reporting - Reviewer

. Government Finance OfficersAssociation (GFOA)

. California Society ofMunicipal FinanceOfficers (CSMFO)

r California Special DistrictAssociation(csDA)

Various municipal accounting coursesoffered by the AICPA, CaICPA EducationFoundation including:

r Governmental and Nonprofit AnnualUpdate

r GASB Basic Financial Statements forState and Local Governments

. Single Audits: Uniform Grant Guidance(formerly OMB Circular A-133J

o Financial Accounting Standards BoardAnnual Updates

e GaIGPA

Audit Services:

Edrrcatio¡r:

Co nsu lti Services:

Licenses and Certifications

ial District Accounti

Professional Affi liations:

Financial Re ng:

Corrtinuing Education

So¡ne A cies Served

iCPA

PROPOSAL FORAUDTTTNG SERVTCES l6

7.3-6

Peter Glenn, CPA

Review Partner

Peter joined the firm in 201 1 after nearly three years of previouspublic accounting and auditing experience. Peter will work under thegeneral direction ofthe partner. Peter is our choice for newgovernmental audit clients, having successfully worked on each oftheFirm's clients since beginning with the Firm. His main responsibilitiesinclude assistance in the preliminary planning of audit work, review ofassistants'work, and performing audit procedures in more complexaudit areas.

Peter Glenn began his auditing career with Nigro & Nigro in 2011,participating in audits ofspecial districts, LEAs, other governmentalaudits, and agreed-upon procedure engagements. Prior to joining thefirm, he worked for three years at another public accounting firm,developing his auditing skills. He has previously been the in-chargeaccountant for some of the firm's largest clients,

Mr. Glenn has experience in a variety of governmental accountingissues, derived from his auditing experience at the firm. He regularlyconsults with clients in areas of:

r Internal controls¡ Financial reporting & GASB 34. Annual report offinancial transactions

o Uniform Guidanceo Performance Auditsr Year-end closing procedures¡ Cash flowso Budget development and projections. Multi-Year projections

¡ Riverside County Open Space and Park District¡ Cahuilla Band of Indianso Murrieta Valley Cemetery District

Bachelor of Science, BusinessAdministration, AccountingCalifornia State University,San Marcos, 2008, Magna Cum Laude

r Certified Public Accountant, California

¡ CASBO Annual Conference¡ SSC Finance & Management

Conferences¡ Government Accounting & Auditing

Conference. ln-house training for audit staff

[presenter]

Q CaIGPA

Autlit Services:

Fld ur:a tio¡r

(,onsulting Services:

l,icenses and Certificatir¡ns

a I Distrir:t Ar:cor¡ ntiS

C<¡ntilru Fld uca tion:

F'i na ncial rti

Other Agencies Served

.å ¡ c PA. ffJiJHil,ït"nt.,.


7.3-7

SUPERVISORY AND STAFF QUALIFICATIONS & EXPERIENCE

[CONTINUEDJ

Training & Resources

The Firm is committed to a continuing professional education program, which emphasizes the areas ofexpertise of each member of our professional staff. The Firm is required to comply with the GovernmentAudíting Standqrds for each professional practicing in the area of governmental accounting and auditing. Weare committed to follow those standards, which result in quality audit services, including continuing educationfor all staff of 60-80 hours each year, specificalìy in school districts and governmental auditing. As required byGovernmentAuditing Stqndqrds, all governmental audit staffreceives the required continuing education in thearea of governmental auditing and accounting. These policies are monitored internally, reviewed annually andcertified periodically by independent peer review.

Library facilities are maintained which include current professional literature and specific information for theindustries that we serve. The Firm ìibrary is also reviewed as part of the external quality review program. TheFirm has in-house training programs specific to our school district clients. We also perform auditing andaccounting updates for our clients that are organized by our staff. These practices ensure the quality of ourstaff over the term of the engagement.

Our staff participates in activities relating to government accounting and reporting issues through ourmembership and involvement with the following organizations:

a. American Institute of CPA's Governmental Audit Quality Centerb, California Society of CPAs

c. Government Finance 0fficers Association (GFOAJ

d. California Special Districts Association [CSDA]e. Government Accounting Standards Board IGASB)f. Association of Certified Fraud Examiners IACFE)

Through our participation in these organizations and continuing education provided by them, the Firmcontinues to stay abreast ofalì current governmental accounting and reporting issues. Some ofthe professionaleducation our audit team members have either presented at or attended in the last two years include:

¡ SSC Annual Finance and Management Conference¡ SSC Governor's Budget Workshope CSDA Annual Conference¡ CSMFO Conference¡ GFOA Annual Conference¡ Various other governmental workshops

We recognize that our most important product is prompt and effective service. We believe the District shouldwork with its CPA firm throughout the entire year. We are available at any time throughout the year to provideany assistance you may need.

We recognize that ourmost important productis prompt and effective

service.

PROPOSAL FORAUDITING SERVICES I 10

7.3-8

SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIESCONTI N U ED

In addition to the valued clients listed on the previous page, we workwith many more governmental clients, as

shown below. Our client retention history has been excellent and several of the clients have been clients fornearly ten years.

Government Clientsfor the Last Three Years

KEY. SchoolDlstrlctlcouot!

Ol[ce Audlts('¡ldrdes Prcp,3t bo¡d rõdif)

. Prop..l9 Bond .\ltlifs

. Cbârt€r Schooll

. ,lP.{'r

. sp€ciâl Dls(riet!

ft' rigro * lttgro oÍtices

San

0s

&t

Yolo CountvYolo COE

Vlñ¡lorr Ccmot6ryDlst¡¡cl E!.@4e$g

Plumlr U8DPlmilCOE

?lumar Co, fran¡itPlurat CountyTraniportri on

f{€ndælno CouñlvArd.ilmVdlôl,"¡l.ndoclno COE

Utlrh UgI)

srn JorouÍn CountYGr.d Vdloy A€drmy

trñtæaP.trlmr C¡ty 8chæl3

3dñaCOE

!@g]l.mdryU3OUbcrry Eso

Orl Gþvr UsD

gtlnE!q.-ç4u!Hlr+nrmm Utúø 8D"Grut Vrlloy Acadrmy -

Modætoüld!.sgcrgLarlcpur4orta ¡lrúrrt

3.n Rrl{l C¡ly EsDS.n Rrtrd Clty H3D

!rye-@!gD.dn Vrl|ry UsO@sqSeslg

John SflÊtl U8O

g!ñtr Clrru Countv8.nyüUtÍ¡.

Alamrd. CountvCútÞ Vallcy UED

UEmoro Vallcy Jolnt UgDKcy A@drmy Chartw

1Í-vllry ROP

3ãn B.nlto CdnlvAm[ lrnJu.n U3O

Þ.E!ffiü4s!gAd.lrnlo E8O

Applc Vdl!y USItChrttry Joint UH8O.

Co¡ton Jolnt UgtFont m U8OHr.pcri. UED*lorcngo USff

Vlctor E9Ð'lÍgh Dllrrt Plttncrahlpsan Berna¡d¡Ío colrty

Trgasury

Vrntuaa CounlvHu6namr EEOOxn.rd ESD'

9.nta P.ul. U8DMoorpárk USD

g¡scssgltC€d.tr.no USD

Cypru 8D'Full.rton sOTurün Ustr

Lo! Anocld CqntvAsd,. Ugo'Bonlt USD'

El tilont Clty EsO'El Rrncho ugD'

H.c'triltr Lr Purnta UgDLår VlÍgür¡ UEeLildl Jolnt 3DRwllnd U3f''Tomnc. UgD'

Acâdañi¡ Avlncr Chrrtdc6ntral Bâs,n Municípal

Waler DictrictAntelopo Valloy Iransp.

AulhorityPalmdalo Water tìEtdct

Rlvcn¡dr couÍÍvJun¡Þ. USD'P.nl. EgD

Rlv.n¡da UEDgârtr Rora AcrdlmyHlthl¡nd Aesdsmy

lemectrla€lE¡nor!-Anza-Murrieta Rssource

Conssryåtion DlslñctR¡vers¡dE Park å Opçn

Spacc DislrictËlslnore Cemetery DlstMurri€ta Cemetery Dlst

S6n Dlcoo CountvF.llb@k UESD

Gro¡rmonl UHSD'tü Dl.go Co. Ëd

AuüontyMission RsrouÌce

Cons6ryat¡on DlstrictPauma valloy

Roro!rceCqnssryal¡on Di3lr¡ctValloy C6ntér Pârk &Recreâtlon ÐlEt.lct

Râncho PaumâMutual \tater

Lakg CuyanìaçaRec & Park O¡6t.


7.3-9

ADD ITIONAL I N FORMATION

Audit ApproachWe will auditthe basic financial statements of the District for the year ended fune 30, 20t9 in accordance withthe following standards:

¡ Auditing Standards Generally Accepted in the United States of America. Government Auditing Standards, issued by the Comptroller General of the United Stateso Minimum Audit Requirements and Reporting Guidelines for Special Districts

Our audit will be for the purpose of expressing an opinion on the basic financial statements, and will includesuch auditing procedures as considered necessary to accomplish this purpose. We will also provide an "in-relation-to" opinion on any other supplemental information and statistical schedules. We anticipate issuingthe following reports:

Independent Auditors' Report on the basic financial statements.Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance andOther Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standqrds.

In addition, we will provide the District with a management letter that will give written appraisals of itsaccounting and related systems. This letter will identifii any control deficiencies, significant control deficienciesor material weaknesses that are identified during the audit. We will work with management before auditfieldwork and during the course of the audit to assess internal controls and review mitigating controls in placein an effort to reduce the control deficiencies, significant control deficiencies and material weaknesses thatneed to be reported to management in writing, assuming there are mitigating controls in place. The letter willalso offer recommendations for the elimination of weaknesses that we identify, and we will suggest anymethods we discover to help improve efficiency and effectiveness.

We will schedule an appearance with the Board and the Audit Committee that allows an opportunity for us topresent the audit and management letter. This is an excellent time for the District to resolve any questions ithas regarding our audit or management letter. As mentioned earlier, the value in hiring our Firm comes fromnot only the audiÇ but from our experience and the education, we can provide. We hope that as questions orconcerns arise throughout the yea¡ the District staff will contact us and draw on our knowledge andexperience.

Non-significant deficiencies discovered during the audit process shall be reported in a separate letter tomanagement, the Board and the Audit Committee, which shall be referred to in the reportfsJ on internalcontrols. This separate letter also informs the Board and the Audit Committee of the following:

1) The auditor's responsibility under auditing standards generally accepted in the United States ofArnerica,

Z) Significantaccounting policies.3) Management judgments and accounting estimates.4) Significant audit adjustments.5) Other information in documents containing audited financial statements.6) Disagreements with management.7) Management consultation with other accountants.8) Major issues discussed with management prior to retention.9) Difficulties encountered in performing the audit.

All working papers and reports will be retained at the Firm's expense for a minimum of seven [7] years, unlessthe Firm is notified in writing by the District of the need to extend the retention period.

a


7.3-10

ADDTTIONAL rN FORMATION ICONTINUEI)

Testimonial

Fraud Hotline

@Throughout the audit process, we will make available our fraud hotline reporting service at noadditional charge over the period ofthe contract to ensure the District has an effective anti-fraudprogram,

"Few people have the opportunity to work with someone who was a coach and a

mentor-t¡ut I did when I worked with Paul. I had the pleasure working tlirectly underPaul's supervision and I was particularly impressed by his ability to handle even thetoughest clients - and effbrtlessly. That skill often takes years to develop, but it seemedto come perfectly natural to him. Paul was one of those rare partners who also naturallyserve as an inspiring mentor for the whole staff and I was grateful to learn a lot fromhim."

I)eana MillerAcutuntinp¡ Munu.qerPolyCerct, Inc.


7.3-11


Date: 05/09/19


Item: Business 7.4

Subject: Promissory Note, Vineyards Residential Association

Reason: Supports Strategic Goal No. 3 Financial Stewardship by striving for maximum efficiency and transparency

SUMMARY Recommendation: Ratify the promissory note with the Vineyards Residential Association.

Fiscal Impact: The principal amount of $50,000 on the promissory note will yield the same returns as the rest of the District’s reserve funds invested in the Local Agency Investment Fund.

Previous Related Action: None.

BACKGROUND Section 1.40.070 of the District Administrative Code describes the requirements governing cross connections pursuant to California Code of Regulations, Title 17. Water service to certain premises requires installation, inspection, testing and maintenance of a backflow protection devices by the account holder.

DISCUSSION Due to an unfortunate course of events, one of District’s largest recycled water customers, the Vineyards Residential Association is out of compliance with the regulations that govern cross connection control and backflow prevention. It has been determined that it will cost between $50,000 and $100,000 to mitigate the situation. To aid in bringing the customer to compliance and avoid a prolonged shutoff of the service, the District agrees to make a loan to the association on terms that ensure yielding similar rate of return than District’s long-term investment portfolio. Submitted,

Piret Harmon General Manager Enclosed: Promissory Note, Vineyards Residential Association

7.4-17.4-1

PROMISSORY NOTE Scotts Valley, California May 15, 2019 Borrower: The Vineyards Residential Association, Scotts Valley, CA

Lender: Scotts Valley Water District, Scotts Valley, CA

Principal Amount: $50,000.00

The Vineyards Residential Association (“Vineyards”), a customer of the Scotts Valley Water District (“District”), is currently out of compliance with the District’s Cross Connection Control and Backflow Prevention regulations. In consideration of the significant investment required by the Vineyards to meet the regulations, and the continued relationship of the parties, the District agrees to lend the Vineyards a sum of fifty thousand dollars ($50,000) under the following terms and conditions.

1. The Vineyards will take all necessary actions to ensure that it will meet the requirements set by the District’s Cross Connection Control and Backflow Prevention Program by June 15, 2019 and continue meeting the requirements thereafter.

2. The Vineyards promises to pay to the District the principal sum of $833.33 together with interest payable on the unpaid principal commencing on June 15, 2019 and continuing on the 15th day of each and every month thereafter until paid in full. Late payments will be entitled to a limited grace period of five (5) days after which a late charge of $25 will be added to the payment due.

3. The interest payable is calculated using the rate of return for the District’s reserves invested at the Local Agency Investment Fund (LAIF). LAIF rates are updated quarterly, and the District will use the updated rates in the month following each quarter end (April, July, October, January).

4. This note must be repaid in full on May 15, 2024. 5. The Vineyards may pay the outstanding balance then owing under this note to the

District at any time without penalty. 6. In case of default, the District may discontinue the water service to the Vineyards. Any

additional charges for reconnecting the service must be paid by the Vineyards at the time of restoring the service or at the time of prepayment of this note.

If an action is brought to enforce, interpret or avoid this note, the prevailing party shall be entitled to attorneys’ fees and all court costs incurred.

7.4-2

By signing this promissory note, the signer on behalf of the Vineyards certifies that he or she has the full authority to sign this note on behalf of the Vineyards.

Vineyards District Date: Date: Signature: Signature: Renee Keehn, President Piret Harmon, General Manager

7.4-3

STAFF REPORT - Finance Scotts Valley Water District

Date: 05/09/19



Item: Staff Reports 8.3

Subject: Financial Reports for Period Ending 03/31/19

Summary Fiscal Year-to-Date (YTD) figures reflect the period of 07/01/18 through 03/31/19. YTD revenues total $5.5 M and expenses total $4.4 M.

Revenue March is the ninth month of the fiscal year and the first month of the March-April potable water billing period. YTD potable water sales revenue is $2.7 M, water services “Ready to Serve” revenue is $1.4 M and new connections revenue is $0.5 M. Total YTD revenue in the potable water fund is $5.1 M, equal to 68% of the budget and 6% higher than the same period last fiscal year.

YTD recycled water sales revenue is $0.3 M, water services revenue is $20 K, and new connections revenue is $6 K. Total YTD revenue of $0.36 M in the recycled water fund equals 37% of the budget, which is 7% higher than for the same period last fiscal year.

Expenses Combined operating expenses YTD are slightly below budget, with expenses of $3.7 M representing 68% of the budget. Project expenditures total $0.6 M and the debt service principal payment has not yet been made.

Fund Balance Cash reserves at the end of March were approximately $2.8 M with another $0.6 M booked in Accounts Receivable, and slightly under $0.2 M invested in CDs.

Enclosures Quarterly Financial Report – Q3 of FY 2019 Budget Status Balance 07/01/18 – 03/31/19 Budget Status Revenue 07/01/18 – 03/31/19 Budget Status Expense 07/01/18 – 03/31/19 Project Costs Summary 07/01/18 – 03/31/19 Balance Sheet as of 03/31/19 Check Register 03/01/19 – 03/31/19 Investment Summary 03/31/2019

8.3-1

FY 2019 – Q3 Financial Report July 1, 2018 – March 31, 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 through March 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 year through the second quarter (July – March) is down 5.8% to 146 million gallons from 155 million gallons in FY 2018. Total water consumption in the District across all categories is 4.4% 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

130.0135.0140.0145.0150.0155.0160.0

Single-Family Residential (SFR)

Milli

ons

Consumption 3 Year History : SFR (July through March)

2017 2018 2019

020406080

Multi-Family Residential(MFR)

Commercial & Industrial(CII)

Landscape - Potable Landscape - Recycled

Milli

on

Gal

lons

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

2017 2018 2019

8.3-2

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 Q3 of FY 2019, which accounts for activity from July through March, are tracking below budget. Total operating expenses exceed the same period in FY 2018 by 9%. 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

Administration Finance / CustomerService

Operations Engineering & WUE Board of Directors

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

FY 2017 FY 2018 FY 2019

8.3-3

Budget Status - Balance

Period: 7/1/18-3/31/19 25%

FY 2018YTD Actual

FY 2019YTD Actual

FY 2019vs. FY 2018

YOY% change

FY 2019 Budget

FY 2019 Remaining

Balance %

Period: 7/1/18-3/31/19 (9 months)

Potable Water - Fund 01Water Sales & Services (R10, R20) 3,826,610$ 4,106,841$ 280,231$ 7% 5,939,385$ 1,832,544$ 31%New Connections (R25) 412,725$ 495,374$ 82,648$ 20% 667,047$ 171,673$ 26%Other Revenue (R30, R40) 612,843$ 539,962$ (72,882)$ -12% 936,268$ 396,306$ 42%Potable Water Total 4,852,179$ 5,142,177$ 289,998$ 6% 7,542,700$ 2,400,523$ 32%

Recycled Water - Fund 02Water Sales & Services (R10, R20) 325,836$ 353,070$ 27,235$ 8% 533,677$ 180,607$ 34%New Connections (R25) 9,171$ 6,396$ (2,775)$ n/a 11,896$ 5,500$ 46%Other Revenue (R30, R40) 2,850$ 2,550$ (300)$ n/a 428,217$ 425,667$ 99%Recycled Water Total 337,857$ 362,016$ 24,160$ 7% 973,790$ 611,774$ 63%

TOTAL REVENUE 5,190,035$ 5,504,193$ 314,157$ 6% 8,516,490$ 3,012,297$ 35%

Expenses - Fund 01 and Fund 02 CombinedSalaries & Benefits (E01) 1,941,375$ 2,096,786$ 155,411$ 8% 2,753,386$ 656,600$ 24%Services & Supplies (E03-E80) 1,486,099$ 1,639,978$ 153,880$ 10% 2,808,889$ 1,168,911$ 42%Project Expenses 1,522,264$ 645,358$ (876,906)$ -58% 2,770,000$ 2,124,642$ 77%Debt Service - Principal 452,927$ -$ (452,927)$ -100% 460,030$ 460,030$ 100%TOTAL EXPENSES * 5,402,665$ 4,382,122$ (1,020,543)$ -19% 8,792,305$ 4,410,183$ 50%

NET REVENUE (212,630)$ 1,122,071$ 1,334,700$ -628% (275,815)$ (1,397,886)$ 507%

Period: 7/1/18-3/31/19 (9 months)Total Revenue 5,190,035$ 5,504,193$ 314,157$ 6% 8,516,490$ 3,012,297$ 35%Total Expenses * 5,402,665$ 4,382,122$ (1,020,543)$ -19% 8,792,305$ 4,410,183$ 50%

Net Revenue (212,630)$ 1,122,071$ 1,334,700$ -628% (275,815)$ 0%

Period: 7/1/18-2/28/19 (8 months)Total Revenue 4,688,864$ 5,103,602$ 414,738$ 9% 8,516,490$ 3,412,888$ 40%Total Expenses * 5,024,571$ 3,873,771$ (1,150,800)$ -23% 8,792,305$ 4,918,534$ 56%

Net Revenue (335,706)$ 1,229,831$ 1,565,537$ -466% (275,815)$ 0%

* Expense totals do not include depreciation expense

FY Remain:

8.3-4

Period: 7/1/18-3/31/19 25%

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 1,485,603$ 1,514,818$ 29,215$ 2% 2,300,863$ 786,045$ 34%01-000-41102 Residential Consumption - MF 99,517$ 114,074$ 14,557$ 15% 154,315$ 40,241$ 26%01-000-41103 CII Consumption - Commercial 711,038$ 770,455$ 59,417$ 8% 1,219,011$ 448,556$ 37%01-000-41106 CII Consumption - Other 57,836$ 69,079$ 11,243$ 19% -$ (69,079)$ 01-000-41105 Irrigation Consumption 238,730$ 202,514$ (36,217)$ -15% 347,376$ 144,862$ 42%01-000-41200 Other - Bulk Water 7,550$ 26,319$ 18,769$ 249% 16,000$ (10,319)$ -64%

R10 Sub Totals: 2,600,275$ 2,697,259$ 96,984$ 4% 4,037,565$ 1,340,306$ 33%

R20 Operating Revenue - Water Services01-000-41300 Other - Late Penalty 22,590$ 22,100$ (490)$ -2% 34,120$ 12,020$ 35%01-000-42100 Standby Basic Meter Charge 1,164,004$ 1,340,806$ 176,802$ 15% 1,808,047$ 467,241$ 26%01-000-42121 Standby FP Basic Meter Charge 31,641$ 37,202$ 5,561$ 18% 48,653$ 11,451$ 24%01-000-43300 Other Operating Revenue 8,100$ 9,475$ 1,375$ 17% 11,000$ 1,525$ 14%

R20 Sub Totals: 1,226,336$ 1,409,583$ 183,247$ 15% 1,901,820$ 492,237$ 26%

R25 Operating Revenue - New Connections01-000-42101 Other Meter Fee 3,194$ 7,678$ 4,484$ 140% 10,535$ 2,857$ 27%01-000-42102 Other Capacity Fee 405,855$ 482,711$ 76,856$ 19% 650,102$ 167,391$ 26%01-000-42120 Other FP Meter Fee 650$ 3,140$ 2,490$ 383% 410$ (2,730)$ -666%01-000-43100 Other Will Serve 375$ 500$ 125$ 33% 1,000$ 500$ 50%01-000-43200 Other Dev Proj Review 2,651$ 1,345$ (1,307)$ -49% 5,000$ 3,655$ 73%

R25 Sub Totals: 412,725$ 495,374$ 82,648$ 20% 667,047$ 171,673$ 26%

R30 Non-Operating Revenue - Other01-000-46000 Property Taxes 484,732$ 505,080$ 20,349$ 4% 869,268$ 364,188$ 42%01-000-47110 Interest & Dividend 4,969$ 3,130$ (1,839)$ -37% 7,000$ 3,870$ 55%01-000-47120 Interest - LAIF 3,671$ 7,452$ 3,781$ 103% 8,000$ 548$ 7%01-000-47520 Misc. Non-Operating Revenue 120,408$ 20,654$ (99,754)$ -83% 2,000$ (18,654)$ -933%01-000-47530 Unrealized Gain/Loss on Invest (1,656)$ 2,925$ 4,582$ -277% -$ (2,925)$ 01-000-47540 Third-Party Reimbursements -$ 50,000$ 50,000$ 100%

R30 Sub Totals: 612,123$ 539,242$ (72,882)$ -12% 936,268$ 397,026$ 42%

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: 4,852,179$ 5,142,177$ 289,998$ 6% 7,542,700$ 2,400,523$ 32%Fund 01 Rev Excl Grants & Cap Contributions

4,851,459$ 5,141,457$ 289,998$ 6% 7,542,700$ 2,401,243$ 32%

Budget Status - Revenue

FY Remain:

Page 18.3-5

Period: 7/1/18-3/31/19 25%

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 Sales 02-000-41105 Irrigation Consumption 299,959$ 317,291$ 17,332$ 6% 476,216$ 158,925$ 33%02-000-41200 Other - Bulk Water 15,708$ 15,278$ (430)$ -3% 28,000$ 12,722$ 45%

R10 Sub Totals: 315,668$ 332,569$ 16,902$ 5% 504,216$ 171,647$ 34%

R20 Operating Revenue - Water Services02-000-42100 Standby Basic Meter Charge 10,168$ 20,376$ 10,208$ 100% 29,461$ 9,085$ 31%02-000-43300 Other Operating Revenue 125$ 125$ -$ (125)$

R20 Sub Totals: 10,168$ 20,501$ 10,333$ 102% 29,461$ 8,960$ 30%

R25 Operating Revenue - New Connections02-000-42101 Other Meter Fee 250$ 448$ 198$ 179% -$ (448)$ 02-000-42102 Other Capacity Fee 8,921$ 5,948$ (2,973)$ -33% 11,896$ 5,948$ 50%

R25 Sub Totals: 9,171$ 6,396$ (2,775)$ -30% 11,896$ 5,500$ 46%

R30 Non-Operating Revenue - Other02-000-47110 Interest & Dividend 2,850$ 2,550$ (300)$ -11% 9,578$ 7,028$ 73%02-000-47540 Third Party Reimbursements -$ 257,000$ 257,000$ 100%02-000-47560 Reduction of RW Entitlement -$ 161,639$ 161,639$ 100%

R30 Sub Totals: 2,850$ 2,550$ (300)$ -11% 428,217$ 425,667$ 99%

Fund 02 Revenue: 337,857$ 362,016$ 24,160$ 7% 973,790$ 611,774$ 63%Fund 02 Rev Excl Grants & Cap Contributions

337,857$ 362,016$ 24,160$ 7% 973,790$ 611,774$ 63%

Revenue Totals: 5,190,035$ 5,504,193$ 314,157$ 6% 8,516,490$ 3,012,297$ 35%Revenue Total Excl Grants & Cap Contributions 5,189,315$ 5,503,473$ 314,157$ 6% 8,516,490$ 3,013,017$ 35%

Page 28.3-6

Period: 7/1/18-3/31/19 25%

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 355,552$ 393,507$ 37,955$ 11% 516,744$ 123,237$ 24%E03 G&A - Services 185,773$ 222,655$ 36,882$ 20% 322,646$ 99,991$ 31%E05 G&A - Supplies 6,816$ 13,545$ 6,729$ 99% 15,100$ 1,555$ 10%E10 Source of Supply 100,858$ 132,231$ 31,372$ 31% 498,341$ 366,110$ 73%

Dept 100 Sub Totals: 648,999$ 761,938$ 112,939$ 17% 1,352,831$ 590,893$ 44%

Dept Finance/Customer ServiceE01 Salaries & Benefits 272,397$ 309,380$ 36,983$ 14% 393,680$ 84,300$ 21%E03 G&A - Services 105,976$ 104,910$ (1,066)$ -1% 185,300$ 80,390$ 43%E05 G&A - Supplies -$ 11$ 11$ 3,000$ 2,989$ 100%E35 Customer Accounts 53,827$ 78,055$ 24,227$ 45% 94,120$ 16,065$ 17%E70 Other 967$ 989$ 23$ 2% 1,000$ 11$ 1%E80 Debt Service - Interest 77,700$ 71,164$ (6,537)$ -8% 99,282$ 28,118$ 28%

Dept 200 Sub Totals: 510,867$ 564,508$ 53,641$ 10% 776,382$ 211,874$ 27%

Dept OperationsE01 Salaries & Benefits 1,097,374$ 1,165,753$ 68,379$ 6% 1,505,172$ 339,419$ 23%E03 G&A - Services 91,457$ 116,112$ 24,655$ 27% 186,770$ 70,658$ 38%E05 G&A - Supplies 23,523$ 26,526$ 3,003$ 13% 30,500$ 3,974$ 13%E07 General Production 54,541$ 61,756$ 7,215$ 13% 84,000$ 22,244$ 26%E10 Source of Supply 99,734$ 38,512$ (61,222)$ -61% 80,000$ 41,488$ 52%E15 Pumping 295,492$ 261,418$ (34,074)$ -12% 366,000$ 104,582$ 29%E20 Water Treatment 174,473$ 232,613$ 58,141$ 33% 439,750$ 207,137$ 47%E25 Transmission & Distribution 58,885$ 90,907$ 32,022$ 54% 131,000$ 40,093$ 31%E35 Conservation 1,053$ -$ (1,053)$ -100% 2,000$ 2,000$ 100%E70 Other 87,247$ 116,781$ 29,534$ 34% -$ (116,781)$

Dept 300 Sub Totals: $ 1,983,779 2,110,378$ 126,599$ 6% 2,825,192$ 714,814$ 25%

Dept EngineeringE01 Salaries & Benefits 59,170$ 62,477$ 3,307$ 6% 94,766$ 32,289$ 34%E03 G&A - Services 25,107$ 36,489$ 11,382$ 45% 97,430$ 60,941$ 63%E05 G&A - Supplies 15$ -$ (15)$ -100% 1,000$ 1,000$ 100%

Dept 400 Sub Totals: 84,291$ 98,966$ 14,675$ 17% 193,196$ 94,230$ 49%

Dept WUE/ConservationE01 Salaries & Benefits 73,382$ 77,763$ 4,381$ 6% 112,455$ 34,692$ 31%E03 G&A - Services 533$ 4,138$ 3,605$ 677% 38,500$ 34,362$ 89%E05 G&A - Supplies 34,387$ 19,867$ (14,520)$ -42% 56,500$ 36,633$ 65%

Dept 500 Sub Totals: $ 108,302 101,768$ (6,533)$ -6% 207,455$ 105,687$ 51%

Dept Board of DirectorsE01 Salaries & Benefits 83,500$ 87,905$ 4,405$ 5% 130,569$ 42,664$ 33%E03 G&A - Services 6,105$ 11,125$ 5,019$ 82% 16,400$ 5,275$ 32%E05 G&A - Supplies 1,630$ 175$ (1,455)$ -89% 250$ 75$ 30%

Dept 900 Sub Totals: 91,236$ 99,206$ 7,970$ 9% 147,219$ 48,013$ 33%

Budget Status - Expense

FY Remain:

Page 18.3-7

Period: 7/1/18-3/31/19 25%

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 1,941,375$ 2,096,786$ 155,411$ 8% 2,753,386$ 656,600$ 24%E03 G&A - Services 414,950$ 495,429$ 80,478$ 19% 847,046$ 351,618$ 42%E05 G&A - Supplies 66,370$ 60,124$ (6,246)$ -9% 106,350$ 46,226$ 43%E07 General Production 54,541$ 61,756$ 7,215$ 13% 84,000$ 22,244$ 26%E10 Source of Supply 200,593$ 170,743$ (29,850)$ -15% 578,341$ 407,598$ 70%E15 Pumping 295,492$ 261,418$ (34,074)$ -12% 366,000$ 104,582$ 29%E20 Water Treatment 174,473$ 232,613$ 58,141$ 33% 439,750$ 207,137$ 47%E30 Conservation 1,053$ -$ (1,053)$ -100% 2,000$ 2,000$ 100%E25 Transmission & Distribution 58,885$ 90,907$ 32,022$ 54% 131,000$ 40,093$ 31%E35 Customer Accounts 54,794$ 78,055$ 23,261$ 42% 95,120$ 16,076$ 17%E70 Other 87,247$ 117,770$ 30,523$ 35% -$ (116,781)$ E80 Debt Service - Interest 77,700$ 71,164$ (6,537)$ -8% 99,282$ 28,118$ 28%

Purchase Order Carryover 60,000$ District Expense Total: 3,427,474$ 3,736,764$ 309,290$ 9% 5,562,275$ 1,765,511$ 32%

Fund 01 and 02 CombinedE01 Salaries & Benefits 1,941,375$ 2,096,786$ 155,411$ 8% 2,753,386$ 656,600$ 24%E03-E80 Services & Supplies 1,486,099$ 1,639,978$ 153,880$ 10% 2,748,889$ 1,108,911$ 40%

Purchase Order Carryover 60,000$ District Expense Total: 3,427,474$ 3,736,764$ 309,290$ 9% 5,562,275$ 1,765,511$ 32%

Page 28.3-8

Period: 7/1/18-3/31/19 25%

FY 2019YTD Actual

FY 2019 Budget

FY 2019 Remaining

Balance %


Project DescriptionC15016 Accounting & UB S/W Replacement -$ 20,000$ 20,000$ 100%C15021 Groundwater Recharge w/ Recycled Water 1,169$ 300,000$ 298,831$ 100%M16022 Recycled Water Fill Station -$ 8,000$ 8,000$ 100%C16023 Orchard Run WTP Water Quality Improvement -$ 500,000$ 500,000$ 100%C16024 Bethany Tank Rehabilitation 10,655$ 200,000$ 189,345$ 95%M17011 Meters with AMI 92,557$ 120,000$ 27,443$ 23%C17011 AMI Technology for Meters 116,766$ 150,000$ 33,234$ 22%C17018 Specialized Operations Vehicle 90,932$ 50,000$ (40,932)$ -82%C17025 Main Replacement Program - RW 164,119$ -$ (164,119)$ C18026 Main Replacement Program - PW -$ 75,000$ 75,000$ 100%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 20,350$ 45,000$ 24,650$ 55%C18035 Sequoia Tank Rehabilitation 29,179$ 650,000$ 620,821$ 96%C19010 Recycled Water Main - Hwy 17 Crossing 12,040$ 257,000$ 244,960$ 95%C19020 El Pueblo WTP Improvements 900$ 150,000$ 149,100$ 99%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 9,209$ 30,000$ 20,791$ 69%C19070 FY19 Vehicle Replacement Program -$ 35,000$ 35,000$ 100%

Projects Expense Totals: 645,358$ 2,770,000$ 2,124,642$ 77%

* Scheduled project in the District's Capital Improvement Plan

Projects - Expense

FY Remain:

Page 18.3-9

Balance Sheet


3/31/18 3/31/19

$2,159,266 $2,799,862Investment $411,965 $198,981

$462 $348$645,137 $666,447$152,142 $170,258$293,413 $368,440$160,614 $211,827

$30,989 $53,669$554,070 $392,431$641,797 $650,697

$1,773,205 $752,179$5,267,833 $5,267,833

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

$37,176 $36,171$456,821 $656,179

$27,265,824 $28,025,020

$58,739 $8,877$27,746 $29,880$25,885 $23,721$55,000 $48,000

$293,413 $368,440$479,030 $25,862

$52,555 $2,671$8,177,704 $10,168,744

$212,630 $183,523$9,382,703 $10,859,718

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

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

$25,506,277 $26,221,722

$1,759,547 $1,803,298

$17,883,121 $17,165,302

$27,265,824 $28,025,020Total 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

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 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

8.3-10

Scotts Valley Water DistrictAP Check RegisterMarch 2019

Vendor Name Check Date Check No. Check Amount DescriptionA T & T 3/22/2019 27416 33.03$ AT&T Circuits - Mar 2019ACWA/JPIA 3/22/2019 27417 38,598.65$ EE and Retiree Benefits - Apr 2019AFSCME COUNCIL 57 3/7/2019 27372 564.33$ Union Dues - Mar 2019ALBERT ROSS 3/7/2019 27373 21.92$ Refreshments - OPSBADGER METER 3/7/2019 27374 1,915.28$ Monthly Cell Charge for PW Meter ReadsBADGER METER 3/7/2019 27374 55.18$ Monthly Cell Charge for RW Meter ReadsBATTERIES PLUS BULBS #314 3/22/2019 27418 127.60$ Vehicle Maint - Excavator BatteryBATTERIES PLUS BULBS #314 3/22/2019 27418 147.14$ Small Tools - SpotlightBERNASCONI CLAUDE 3/7/2019 27375 50.00$ Customer Rebate - Pressure RegulatorBRASS KEY LOCKSMITH 3/22/2019 27419 867.10$ Treatment Plant Maint - Pin & PadlocksBRASS KEY LOCKSMITH 3/22/2019 27419 772.12$ Bldg Maint - Door Strike Install - 2 Civic CtrBRENNTAG PACIFIC INC 3/7/2019 27376 3,719.73$ Water Treatment ChemicalsC OVERAA & CO 3/22/2019 27420 2,000.00$ Refund Deposit - PW Bulk MeterCITY OF SCOTTS VALLEY 3/7/2019 27377 480.00$ Bacti Samples - Jan 2019CIVIL CONSULTANTS GROUP INC 3/22/2019 27421 480.00$ General Engineering Services - Mar 2019CIVIL CONSULTANTS GROUP INC 3/22/2019 27421 7,100.24$ RW Main Hwy 17 Crossing - Task 1: Surveying & CEQACIVIL CONSULTANTS GROUP INC 3/22/2019 27421 1,680.00$ Bethany 2nd Tank Addition Task 6: Oversee Tank DesignCIVIL CONSULTANTS GROUP INC 3/22/2019 27421 4,940.00$ RW Main Hwy 17 Crossing - Piping & Boring PlansCIVIL CONSULTANTS GROUP INC 3/22/2019 27421 3,390.00$ Northridge Pressure Reduction Station - Piping & Paving PlansCOMMUNICATION SERVICE CORP 3/22/2019 27422 3,085.83$ Cable & Materials - Security System EnhancementsCOMMUNICATION SERVICE CORP 3/22/2019 27422 2,224.17$ Labor Charge - Security System EnhancementsCORIX WATER PRODUCTS (US) INC 3/22/2019 27423 682.63$ Meter Maint - Meter Box Lid ProbesCORIX WATER PRODUCTS (US) INC 3/22/2019 27423 2,525.19$ Tank Maint - El Pueblo Tank Air Gap & Flange KitCORIX WATER PRODUCTS (US) INC 3/7/2019 27378 2,700.14$ Main Maint - Gate Valves & Combo ARVsCORIX WATER PRODUCTS (US) INC 3/7/2019 27378 321.45$ Meter Maint - Couplings & GasketsCORIX WATER PRODUCTS (US) INC 3/7/2019 27378 3,142.65$ Service Line Maint - Adapters & Misc HardwareCREDIT CONSULTING SERVICES 3/7/2019 27379 400.00$ Precollection Letter Service - Qty: 100DASSELS PETROLEUM 3/22/2019 27424 755.75$ Vehicle Fuel - Feb 2019DOWNTOWN FORD SALES 3/7/2019 27380 37,866.60$ 2019 Ford F250 4x2 Reg Cab w/ Rack, Liftgate, HitchDOWNTOWN FORD SALES 3/7/2019 27380 8.75$ CA Tire TaxDYNAMIC PRESS INC 3/7/2019 27381 377.41$ Office Supplies - Name BadgesE&S TRUCKING 3/22/2019 27425 3,040.00$ Orchard Run Wastewater - Jan-Feb 2019EUROFINS EATON ANALYTICAL 3/7/2019 27382 870.00$ Lab Testing for Water QualityEXCEEDIO 3/7/2019 27383 1,073.00$ Monthly Managed Services: SCADA - Mar 2019EXCEEDIO 3/7/2019 27383 5,598.30$ Monthly Managed Services: HaaS/SaaS/ITaaS - Mar 2019EXCEEDIO 3/22/2019 27426 1,073.00$ Monthly Managed Services: SCADA - Apr 2019EXCEEDIO 3/22/2019 27426 5,598.30$ Monthly Managed Services: HaaS/SaaS/ITaaS - Apr 2019FINCH LUCY 3/7/2019 27384 300.00$ Customer Rebate - Hardscape ReplacementGOLDEN STATE FLOW MEASUREMENT INC. 3/22/2019 27427 2,437.42$ Annual Sensus Software Support - FY2019-20GOLDEN STATE FLOW MEASUREMENT INC. 3/22/2019 27427 20.12$ Meter RepairGRAINGER 3/7/2019 27385 408.59$ Backflow Device - Well 10 WTPGRAINGER 3/7/2019 27385 277.29$ Treatment Plant Supplies - Danger SignsGRAINGER 3/7/2019 27385 288.26$ Small Tools - Drill Bit Set, Strap Wrench, Hole CutterGREEN WASTE RECOVERY INC 3/22/2019 27428 235.05$ Monthly Trash Service - El Pueblo - Feb 2019GROUP TO TEAM LEADERSHIP SOLUTIONS 3/7/2019 27386 5,000.00$ Board Development Retreat - From Group to TeamGUTTERPATROL & WINDOWSHINE 3/22/2019 27429 3,350.00$ Tank Maint - Roof Gutter Downspout CleaningHAIGHT ROBERT 3/22/2019 27430 494.36$ Retiree Medical - Mar 2019HARMON PIRET 3/22/2019 27431 120.23$ Travel Reimb - WateReuse Conf - HarmonHEALTHEQUITY INC 3/7/2019 27387 82.60$ HSA Admin Fees - Jan & Feb 2019HILL BROTHERS CHEMICAL CO 3/22/2019 27432 803.15$ Orchard Run Water Treatment ChemicalsHINES MICHAEL BRADLEY 3/22/2019 27433 6,500.00$ Facility Maint - Prime & Paint Orchard Run Conduit/Air LineHOSE SHOP 3/22/2019 27434 133.34$ Treatment Plant Maint - Pump Suction HoseICON CLOUD SOLUTIONS LLC 3/22/2019 27435 357.20$ Phone Service - Mar 2019ICON CLOUD SOLUTIONS LLC 3/22/2019 27435 121.50$ Phone Service - OPS - Mar 2019INDEPENDENT CONSTRUCTION 3/7/2019 27388 2,000.00$ Refund Deposit - PW Bulk MeterINFOSEND 3/7/2019 27389 175.00$ Programming Changes for Feb 2019 BillsINFOSEND 3/7/2019 27389 1,913.68$ UB Statements Printing & Mailing - Feb 2019INFOSEND 3/7/2019 27389 610.94$ UB Inserts Printing & Mailing - Feb 2019JACK HENRY & ASSOCIATES INC 3/22/2019 27436 500.00$ RemitPlus Software Server UpgradesJACKSON LANDSCAPE 3/7/2019 27390 180.00$ Landscape Maint - 2 Civic Ctr - Feb 2019KASSIS WILLIAM 3/22/2019 27437 541.38$ Retiree Medical - Mar 2019KBA DOCUMENT SOLUTIONS LLC 3/22/2019 27438 168.56$ Copier Maint & Printing Costs - Mar 2019KBA DOCUMENT SOLUTIONS LLC 3/7/2019 27391 231.98$ Copier Maint & Printing Costs - Feb 2019KBA DOCUSYS INC 3/7/2019 27392 394.18$ Copier Lease - Feb 2019KURNS NICK 3/22/2019 27439 339.18$ Travel Reimb - ACWA Leadership Program - KurnsLAW OFFICE OF ROBERT E BOSSO 3/22/2019 27440 3,000.00$ Legal Counsel Services - Feb 2019LMH ENVIRONMENTAL INC 3/7/2019 27393 7,884.00$ Treatment Plant Maint - Well 10 Tower CleaningMILLER MAXFIELD INC 3/7/2019 27394 5,362.50$ Execution of Annual Communication Plan - Feb 2019MILLER MAXFIELD INC 3/7/2019 27394 443.75$ Interagency Advisory Committee Support - Feb 2019MILLER MAXFIELD INC 3/7/2019 27394 175.00$ Purified RW Recharge Project Meeting - Feb 2019MISSION UNIFORM SERVICE 3/7/2019 27395 591.75$ Uniform Laundering & Rental Service - Feb 2019

8.3-11


Vendor Name Check Date Check No. Check Amount DescriptionMONTGOMERY & ASSOCIATES INC 3/22/2019 27441 4,085.00$ 2018 Annual GW ReportMONTGOMERY & ASSOCIATES INC 3/22/2019 27441 4,312.37$ SMGWA Support - Plan & Present Education Series #2NATIONAL METER & AUTOMATION INC. 3/22/2019 27442 18,247.85$ AMI Endpoints - Qty: 191NATIONAL METER & AUTOMATION INC. 3/22/2019 27442 510.67$ Misc AMI Parts - Splice ConnectorsNATIONAL METER & AUTOMATION INC. 3/22/2019 27442 15,694.91$ Meter Purchases - Qty: 119NATIONAL METER & AUTOMATION INC. 3/7/2019 27396 114.47$ Meter Maint Supplies - Communication DeviceNATIONWIDE RETIREMENT SOLUTIONS 3/7/2019 27397 2,058.86$ IRS 457 Plan - Payroll Date 3/1/2019NATIONWIDE RETIREMENT SOLUTIONS 3/22/2019 27443 2,058.86$ IRS 457 Plan - Payroll Date 3/15/2019NATURAL ORANGE INC 3/22/2019 27444 63.00$ Monthly Pest Control - El Pueblo - Mar 2019NATURAL ORANGE INC 3/22/2019 27444 104.00$ Monthly Pest Control - 2 Civic Ctr - Mar 2019NICOR INC 3/7/2019 27398 1,183.08$ Meter Box Lids - Qty: 20NORTON PATRICIA 3/22/2019 27445 458.51$ Retiree Medical - Mar 2019NORTON PATRICIA 3/22/2019 27445 33.72$ Retiree Dental - Mar 2019NORTON PATRICIA 3/22/2019 27445 18.56$ Retiree Vision - Mar 2019OLD GOLD SHEET METAL 3/7/2019 27399 350.00$ Gutter Repair - Orchard Run WTPPACIFIC GAS & ELECTRIC 3/7/2019 27400 1,433.73$ Electricity - 2 Civic Ctr - Feb 2019PACIFIC GAS & ELECTRIC 3/7/2019 27400 24,686.78$ Electricity - PW - Feb 2019PACIFIC GAS & ELECTRIC 3/7/2019 27400 69.88$ Electricity - RW - Feb 2019PACIFIC GAS & ELECTRIC 3/7/2019 27400 0.74$ Electricity - Santas Village Rd - Jan 2019PACIFIC GAS & ELECTRIC 3/22/2019 27446 56.07$ Electricity - Skypark - Feb 2019PACIFIC GAS & ELECTRIC 3/22/2019 27446 13.57$ Electricity - Santas Village Rd - Feb 2019PALACE ART & OFFICE SUPPLY 3/22/2019 27447 265.91$ Office Supplies - Paper, Post-Its, Binder Clips, TapePALACE ART & OFFICE SUPPLY 3/7/2019 27401 107.78$ Misc Office SuppliesPERRI CHRISTOPHER 3/22/2019 27448 1,676.44$ Director Medical - Mar 2019PETERSON CATERPILLAR 3/7/2019 27402 715.95$ Treatment Plant Generator MaintPR DIAMOND PRODUCTS INC. 3/22/2019 27449 362.00$ Small Tools - Multi-Purpose BladesREBER DANIEL 3/22/2019 27450 2,058.58$ Director Medical - Mar 2019REGIONAL WATER MGMNT FOUNDATION 3/22/2019 27451 10,000.00$ IRWM Coordination & Support ServicesSCOTTS VALLEY BANNER - VALLEY PRESS 3/7/2019 27403 260.00$ SV Banner Ad - Hiring OperatorSCOTTS VALLEY SPRINKLER 3/7/2019 27404 34.05$ Main Maint - PVC ConnectorsSCOTTS VALLEY SPRINKLER 3/7/2019 27404 69.97$ Special OPS Supplies - Teflon Tape & MiscSCOTTS VALLEY SPRINKLER 3/22/2019 27452 175.38$ Tank Maint - El Pueblo Reclaim Tank Air GapSHRED IT 3/7/2019 27405 204.38$ Document Destruction - Feb 2019SMITH DAPHNE 3/7/2019 27406 50.00$ Customer Rebate - Pressure RegulatorSOIL CONTROL LAB 3/22/2019 27453 453.00$ Water Quality TestingSOUZA MIKAYLA 3/7/2019 27407 300.00$ Customer Rebate - ToiletsSTEVENSON LANDSCAPING 3/7/2019 27408 855.00$ Landscaping at Misc Locations - Feb 2019STILES RUTH 3/22/2019 27454 746.16$ Director Medical - Mar 2019TAPEMATION 3/7/2019 27409 800.00$ Customer Rebate - ToiletsTIMES PUBLISHING GROUP INC 3/22/2019 27455 175.00$ SV Times Ad - Mar 2019TPx COMMUNICATIONS 3/22/2019 27456 511.18$ VOIP Phone Service - Feb 2019UNITED SITE SERVICES 3/22/2019 27457 186.20$ Portable Toilet Rental - 229 Mt Hermon - Mar 2019UNITED SITE SERVICES 3/7/2019 27410 170.61$ Portable Toilet Rental - Orchard Run WTP - Mar 2019UNIVERSAL BUILDING SERVICES 3/7/2019 27411 437.00$ Janitorial Service - 2 Civic Ctr - Feb 2019UNIVERSAL BUILDING SERVICES 3/7/2019 27411 355.00$ Janitorial Service - El Pueblo - Feb 2019USABLUEBOOK 3/7/2019 27412 1,561.31$ Treatment Plant Maint - Drainage PumpUSABLUEBOOK 3/7/2019 27412 (106.77)$ Return Credit - Meter Reading ScopeUSABLUEBOOK 3/7/2019 27412 439.68$ Small Tools - Illuminated Meter Reading Scopes & BrushesVALERO MARKETING & SUPPLY CO 3/7/2019 27413 436.61$ Vehicle Fuel - Feb 2019VERIZON WIRELESS 3/22/2019 27458 374.90$ Cell Phones / Tablets - Mar 2019WATERSMART SOFTWARE 3/22/2019 27459 2,000.00$ On-Site Training - WaterSmart SoftwareWATERSMART SOFTWARE 3/22/2019 27459 7,500.00$ Initialization - Setup Fee - WaterSmart SoftwareWATERSMART SOFTWARE 3/22/2019 27459 3,600.00$ Customer Engagement Letter - WaterSmart SoftwareWATERSMART SOFTWARE 3/22/2019 27459 5,750.00$ 6 Month WaterSmart Software License (1/1/19 - 6/30/19)WILLIAM A THAYER CONSTRUCTION INC 3/7/2019 27414 27,659.67$ Whispering Pines RW Main Replacement - Added Pipe/Support WorkWILLIAM A THAYER CONSTRUCTION INC 3/7/2019 27414 1,520.03$ Whispering Pines RW Main Replacement - Repair Underground LinesWINCHESTER AUTO 3/22/2019 27460 39.31$ Treatment Plant Maint - Blower BeltsWINCHESTER AUTO 3/22/2019 27460 107.40$ Meter Maint - Misc SuppliesWINCHESTER AUTO 3/22/2019 27460 38.47$ Vehicle Maint - Light Bulb & Grip MatsWINCHESTER AUTO 3/22/2019 27460 (1.01)$ Exchange Credit - Defective Grip MatsWING KANDYCE 3/7/2019 27415 720.00$ Customer Rebate - Lawn Replacement

331,890.32$

8.3-12


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

8.3-13

Scotts Valley Water DistrictInvestment SummaryAs of 3/31/2019

Market Value

Institution Investment CUSIP Purchased Maturity Purchase $ 12/31/2018 3/31/2019 12/31/2018 3/31/2019 3/31/2019

Unrestricted Funds:

LAIF Local Agency Investment Fund various 2.173% 2.173% 650,948$ 654,484$ 653,863$

WFB Checking - General various 0.03% 0.03% 9,396$ 11,849$ 11,849$

WFB Checking - Payroll various 0.03% 0.03% 8,539$ 9,963$ 9,963$

WFB Checking - Revenue various 0.00% 0.00% 853,311$ 2,123,490$ 2,123,490$ WFB CD - Goldman Sachs Bank USA 38147JWH1 3/26/14 3/26/19 112,000$ 1.95% 0.00% 112,000$ -$ -$

WFB CD - Comenity Cap Bank 20033APT7 3/29/16 4/4/19 100,000$ 1.30% 1.30% 100,000$ 100,000$ 99,986$

WFB CD - Goldman Sachs Bank USA 38148PJB4 3/24/17 3/20/22 100,000$ 2.40% 2.40% 100,000$ 100,000$ 98,995$

Subtotal for Unrestricted Funds: 312,000$ 1,834,193$ 2,999,786$ 2,998,146$

Weighted Average Yield 0.60%

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

8.3-14

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 $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 $9,951 825,862 Jan-19 16 0 16 0 0 $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

May-19Jun-19

Total 131 9 123 15 2 $67,331 5,233,742

29%

38%

25%

4%

1%

3%

Location of Adjusted Leaks

Irrigation/Hoses

Service Line

Toilets

House Plumbing

Appliances

Other

8.4-1

STAFF REPORT – Water Use Efficiency Scotts Valley Water District

Date: 05/09/19



Item: Staff Reports 8.5

Subject: Water Use Efficiency Biannual Activity Summary 11/02/18 – 04/05/19

Regional Planning and Collaboration Continued to work with the County Conservation Coalition by attending regular meetings, serving on sub-committees and sharing outreach activities. Oriented students for the Regional Student WaterWise Video Contest at Scotts Valley High School (SVHS), with Joel Domhoff’s ROP Video Production and Mark Andrew’s Environmental Science classes. SVHS submitted the most entries of any school in the county. Professional Development AWWA Water Use Efficiency II training 11/13/19 – 11/14/19, PG&E MWELO training 11/28/19, AWE Outdoor Water Savings Webinar 02/09/19, Valley Water Ambassador Program 02/06/19, 02/20/19, 03/20/19, 03/28/19 and Soquel Creek Irrigation Efficiency Workshop 04/05/19.

Customer Service and Water Use Efficiency Calls: 400+ Leak Adjustments: 85 House Calls and/or Leak Checks: 66 Water Waste Violations: Cited 1(one) landscape and provided follow up education Pre-Rebate Inspections: 14 Post-Rebate Inspections: 6 (Bi-annual rebate tally in the table below*)

Submit content and collaborate with PR contractor Miller Maxfield.

Continue to promote the Monterey Bay Friendly Landscaping, accept certifications, and educate realtors for the City of Scotts Valley Retrofit Upon Resale programs.

Continue using EyeOnWater, begin using WaterSmart and proposing Waterfluence software programs to increase staff efficiency and customer service. Began preparations for annual (irrigation season) Think Twice Program.

8.5-1

Rebates Processed # of Rebates Total Amount

Lawn Replacement ................................8 ............................ $13,012.00 Spray to Drip .........................................6 .............................. $1,918.00 Toilet Replacement ...............................11 ............................ $2,225.00 Pressure Regulators ..............................10 ............................... $500.00 Smart Controllers ..................................1 ................................. $100.00 Greywater Harvesting ...........................0 ..................................... $0.00 Rainwater Harvesting ............................0 ..................................... $0.00 Downspout Diversion ............................1 ................................. $300.00 Hardscape Replacement .......................2 ................................. $774.00

Rebates/Give-Aways Summary

Rebate/Give Away Rebate Offerings

# of Accounts

Served

# of Units/Gals/

Sq Ft SVWD Cost

Annual Water Savings (gal/yr)

6 months Potable Gals

Saved per SVWD $ Spent

High Efficiency Toilet $100-$125 11 22 $2,225 184,514 83

Lawn Replacement $1.00/sq ft 8 13,012 $13,012 231,571 18

Low Volume Irrigation $0.50/sq ft 6 3,836 $1,918 63,117 33 Hardscape Replacement $1.00/sq ft 2 774 $774 N/A N/A Smart Irrigation Controller $100 1 1 $100 N/A N/A

Greywater Irrigation $150 0 - $0 0 0

Rainwater Catchment $0.25/gal 0 - $0 0 0

Downspout Diversion $75 1 4 $300 N/A N/A

Pressure Regulator $50 10 10 $500 N/A N/A

Pre-Rinse Valve Sprays Free to Customer 0 - $0 0 0 Shower Head Free to Customer 0 .7 gpm

Avg of Gals Saved Per $

Spent

Faucet Aerator Free to Customer 0 1.45 gpm

Shut Off Nozzle Free to Customer 0 Prevents

waste Total Year Water Savings 479,202 43

8.5-2

District crews make quick work of Orchard Run booster pump break-down A mid-April late-night alert about a booster pump failure at the Orchard Run Water Treatment Plant resulted in an urgent response from Scotts Valley Water District crews to maintain water service to District customers while making emergencyrepairs.

With the treatment facility offline until pump repairs were completed, District staff were able to rely upon ample storage from the District’s many tanks. Crews alsobegan pumping water from the Well 10 Water Treatment Plant to supply customers as well.

The damaged pump and motor are original equipment to the facility that opened in 1994. A project to replace all three boosterpumps at the facility is in next year’s capitalimprovement program budget. The failure did not damage or affect any other equipment.

The repairs to the Orchard Run Well pump system have been completed and the system is now functioning normally.

11.1-1

Recycled Water Fill Station will not open in2019The District launched the Recycled Water Fill Station program in 2015 to provide a supply alternative for our residential customers when the State of California was in the middle of a severe drought.

The station was well-received by the community with 98 users signing up and going through the permittingprocess in the first 2 years of operation. Use of the station peaked in 2016 with 131,000 gallons distributed over 5 months. Usedropped off sharply in 2017 with 57,000 gallons distributed and again in 2018 with only 56,000 gallons dispensed over the five and half months the station was open. The direct costs to operate the station in 2018 was about $7,000 essentially costing ratepayers $125 to supply 1,000 gallons of free recycled water to a small group of users (in comparison with regular pipe-delivered recycled water cost ofapproximately $13 per 1,000 gallons).

With three years of relatively wet winters behind us, the State of California officially ended the drought on March 5, 2019. Due to a much-improved weather outlook and declining use of the fill station, the District intends to keep the station closed in 2019. The District will consider opening a fill station in the future when and if the watersupply conditions warrant it.

The District is very appreciative of those who were able to take advantage of the fill station during the drought.

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11.1-2

regular board meeting · 2020. 7. 28. · nuleaf tech rachel major, nuleaf tech . scotts valley...

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