SALIDA SANITARY DISTRICT

Regular Meeting of the Board of Directors

September 10, 2026

The regular meeting of the Board of Directors of the Salida Sanitary District was called to order by President Gary Horton at 6:00 p.m. in the Salida Sanitary District Boardroom. Other Directors present were Gary Dew, Lana Moore, and Brad Johnson. Linda Walker, Operations Manager/Board Secretary was also present. Legal Counsel, Attorney Dennis L. Hay was in attendance virtually.

Members of the public were invited to address the Board, but no comments were made.

The minutes of the previous regular meeting held August 13, 2026 were unanimously approved as submitted.

Bills of the District totaling $258,773.39 were presented for payment. A motion was made by Director Dew, seconded by Director Johnson, and on vote unanimously carried to adopt Resolution No. 1816, “Resolution Authorizing Payment of Bills.”

Operations Manager Linda Walker’s report included the following:

1. The Stanislaus County trial balances for the District’s fund accounts have been reconciled through July 31, 2026. The General Fund balance is $9,546,462.28 and the Construction Fund balance is $466,900.56

2. Per the District issued Request for Proposals for the Integration of a Programmable Logic Controller at the Covert Lift Station with the District’s Radio and SCADA systems, a mandatory site visit for potential proposers is scheduled for September 15, 2026. The purpose of this meeting is to allow prospective respondents to inspect the District’s existing radio and SCADA equipment at the Wastewater Treatment Plant, and at the Covert Lift Station site.

3. KSN has worked solely with the former District Manager-Engineer on the Rapid Infiltration Basin Expansion Project. A meeting with KSN has been set for September 17, 2026. The purpose of this meeting is to update and inform the SSD operations staff on the design decisions previously determined by the former District Manager-Engineer, regarding the Rapid Infiltration Basin Expansion Project.

The Closed Session held on August 13, 2026, pursuant to government Code Section 54957 (b)(2) was for the Board of Directors to evaluate the performance of the General Manager and consider possible disciplinary action or dismissal based on complaints and/or possible charges arising from the General Manager’s supervision of District Improvement Projects including but not limited to:

- the Covert Lift Station Upgrades Project

- the propriety of contracts and invoices associated with the Covert Lift Station Upgrade Project

- the Digester Project

- the Basin Modification Project

- interaction with parties associated with the Cottonwood/Fallwood subdivisions

It was decided by the Board to terminate the employment relationship between Salida Sanitary District and Tony Tovar and to offer a Severance Agreement to Mr. Tovar on August 17, 2026. If Mr. Tovar did not agree to accept the Severance Agreement, it was further decided that Mr. Tovar would be given a letter of immediate termination but he would be paid for the second half of August, 2026, on the usual date for payment of salary. It was also agreed that Mr. Tovar would continue to accrue benefits with a termination and payout of accrued benefits up to and including August 31, 2026.

Director Johnson moved to approve an updated BMO Business Credit Card Add Authorized Signer Form, and Association Resolution. The approval of these documents is necessary to complete the task of closing the BMO District credit card assigned to the former District Manager-Engineer. The motion was seconded by Director Moore, and on vote unanimously carried.

A draft Request for Quotations – Surety Bond was presented to the Board. Given the recent events regarding the former District Manager-Engineer, the District’s Legal Counsel has advised the District should consider a Surety Bond. The Board did not take action on the draft Request for Quotations, but instead directed staff to gather more information on availability and cost for obtaining a Surety Bond.

The Political Reform Act requires every Local Government Agency to review its Conflict of Interest Code biennially. Attorney Dennis L. Hay reviewed the District’s Conflict of Interest Code and reported to the Board, there have been no major changes to the statutory requirements for Conflict of Interest Codes, the current Conflict of Interest Code is adequate. It was the consensus of the Board, no amendments to the Conflict of Interest Code are necessary at this time.

The Operations Manager provided written project updates on:

1. The Covert Lift Station Upgrades Project

2. The New Aerobic Digester Project

3. The RIB Expansion Project

4. The Solar Dryer Panel Replacement Project

These updates are attached to and made a part of these minutes.

No action was taken on agenda Item F. “Approve KSN Invoice #44145, dated August 31, 2026 in the amount of $12,422.00 for Rapid Infiltration Basin Expansion Project Design Services.”

Director Moore moved to approve Black & Veatch’s proposal for shelving the New Aerobic Digester Design Project, and approve payment of the final project invoice #1503445, in the amount of $63,855.00, to close out the current contract with Black & Veatch. The motion was seconded by Director Dew, and on vote unanimously carried.

Director Johnson moved to authorize the Board President to sign two letters of engagement with Matos Accountancy to audit the financial statements for the fiscal year 2025-2026 in the amount not to exceed $9,000 and prepare the fiscal year 2025-2026 Annual Special District’s Financial Transaction Report in the amount not to exceed $750.00. The motion was seconded by Director Dew, and on vote unanimously carried.

As there was no further business, the meeting was adjourned.

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Secretary

ATTEST:

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President of the Board