REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
August 18, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Special Districts
SUBJECT
Title
Budget Adjustments for County Service Area 64 Spring Valley Lake - Well 5 and Well 6 Pedestal and Electrical Panel Renovation Project
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of County Service Area 64 Spring Valley Lake:
1. Approve a 2026-27 budget increase of $195,000, from $184,784, as shown in Exhibit G of the 2026-27 Recommended Budget, to $379,784, for the County Service Area 64 Spring Valley Lake - Well 5 and Well 6 Pedestal and Electrical Panel Renovation Project.
2. Approve the revised total project budget from $569,964, as shown in Exhibit G of the 2026-27 Recommended Budget, to $545,000, for the County Service Area 64 Spring Valley Lake - Well 5 and Well 6 Pedestal and Electrical Panel Renovation Project.
3. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the 2026-27 budget adjustment, as indicated in the Financial Impact section, for the County Service Area 64 Spring Valley Lake - Well 5 and Well 6 Pedestal and Electrical Panel Renovation Project (Four votes required).
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
Provide for the Safety, Health, and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). County Service Area (CSA) 64 - Spring Valley Lake (District) is funded by water and sanitation fees charged to customers based on usage. Approval of this item will revise the total CSA 64 Spring Valley Lake - Well 5 and Well 6 Pedestal and Electrical Panel Renovation Project (Project) budget from $569,964 to $545,000 and increase the 2026-27 budget by $195,000.
The following 2026-27 budget adjustments are requested for the Project:
|
Cost Center |
Commitment Item |
Descriptions |
Action |
Amount |
|
CSA 64 Spring Lake Valley Water CIP |
|
4200004582 |
54304030 |
Structures and Improvements to structures |
Increase |
$195,000 |
|
4200004582 |
40909975 |
Operating Transfers In |
Increase |
$195,000 |
|
CSA 64 Spring Lake Valley Water Operating |
|
4200004580 |
55305030 |
Operating Transfers Out |
Increase |
$195,000 |
|
4200004580 |
40909995 |
Residual Equity Transfers In |
Increase |
$195,000 |
BACKGROUND INFORMATION
The District was established by the San Bernardino County Board of Supervisors (Board) on December 30, 1968, to provide water services for the community of Spring Valley Lake. The District currently operates and maintains approximately 3,900 water connections, five wells, one booster station, and three water tanks.
In May 2020, the State Water Resources Control Board conducted a Sanitary Survey of the water system and issued a corrective action order to the District, requiring the District to raise the pedestals of Well 5 and Well 6 to a minimum of 24 inches above the adjacent grade. Also in May 2020, the Department of Public Works - Special Districts (Department) staff inspected the wells and determined that renovation of the electrical panels for both wells was also required to bring the well sites up to current electrical code, which also requires replacement of the existing chlorine shed.
Based on the findings identified during the 2020 Sanitation Survey and the Department’s inspection, the Project scope of work includes raising the pedestals at Well 5 and Well 6 and upgrading the electrical systems to ensure compliance with current electrical codes and city standards. Additionally, this Project involves connecting and integrating Supervisory Control and Data Acquisition (SCADA) hardware and instrumentation and replacing the existing wooden chlorine shed for Wells 5 and 6.
On November 14, 2023 (Item No. 84), the Board determined the Project was exempt under the California Environmental Quality Act (CEQA), approved the Project, approved the Project plans and specifications, and authorized the Department Director to advertise the Project for competitive bids.
For Recommendation No. 1, the District is requesting an increase of $195,000 to the 2026-27 Recommended Requirements for the Project, increasing the 2026-27 budget from $184,784, as presented in Exhibit G of the 2026-27 Recommended Budget, to $379,784. Although an increase in total Project budget was requested during the 2026-27 budget process, a corresponding increase in the 2026-27 Recommended Requirements was not requested.
For Recommendation No. 2, the District is requesting a correction to the total Project as presented in Exhibit G in the 2026-27 Recommended Budget. During the 2026-27 budget process, the total cost for the Project was inadvertently increased from $350,000 to $569,964, as seen in Exhibit G of the 2026-27 Recommended Budget, rather than the intended increase to $545,000. The error in the increase was caused by a previous combination of three individual projects into the current Project. The master Capital Improvement Project (CIP) file used by budget staff was still tracking the prior projects, and some items were added twice to the current Project total budget. This resulted in the total Project budget being overstated by $24,964. Approval of this item will revise the total Project budget to $545,000, while increasing the 2026-27 requested budget by $195,000.
Due to continued equipment deterioration including existing pumps, mechanical piping, electrical components, and quality control issues in the original plans, the District is revising the plans and specifications to include these additional items as part of the project scope of work. The revised project budget includes additional funding for the revised design services associated with updating the plans and specifications.
PROCUREMENT
The Department will return to the Board for approval of new CEQA findings, if applicable, the Project’s revised plans and specifications, and re-authorization to advertise competitive bids in the winter of 2026.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on August 13, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on July 27, 2026; and County Finance and Administration (Matthew Dalton, Administrative Analyst, 387-5005) on August 13, 2026.