MINUTES OF THE BOARD OF DIRECTORS
ZONE 7
ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT

________________________________________________________________

The following were present:

DIRECTORS: SANDS FIGUERS

JOHN GRECI

ANGELA RAMIREZ HOLMES

JIM McGRAIL

SARAH PALMER

RICHARD QUIGLEY

BILL STEVENS

DIRECTORS ABSENT: NONE

ZONE 7 STAFF: JILL DUERIG, GENERAL MANAGER

KURT ARENDS, ASSISTANT GENERAL MANAGER, ENGINEERING

LINDA VAN BUSKIRK, BOARD SECRETARY

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 1 -

CALL TO ORDER / PLEDGE OF ALLEGIANCE

President Quigley called the meeting to order at 6:30 p.m. and the board went into Closed Session immediately.

Item 2 - Closed Session

(a) Conference with Labor Negotiators pursuant to Government Code section 54954.5:

Agency Negotiators: G.F. Duerig and David Aladjem

Employee Organizations: Alameda County Management Employees Association; Alameda

County Building and Construction Trades Council, Local 342, AFL-CIO; International

Federation of Professional and Technical Engineers, Local 21, AFL-CIO; Local 1021 of the

Service Employees International Union, CTW; Unrepresented Management - General Manager and Assistant General Manager, Finance

(b) Conference with Legal Counsel - Significant exposure to litigation pursuant to Gov't Code section 54956.9(d) (2): 1 case

(c) Conference with Legal Counsel - Potential litigation pursuant to Gov't Code section 54956.9(d) (4): 1 case

(d) Conference with Real Property Negotiator

Property: APN 099A-1650-003-09

Agency Negotiator G.F. Duerig

Negotiating Party: Sandra Weck, Colliers International

Under negotiation: Price and terms of payment

(e) Conference with Real Property Negotiator

Property: APN 905-0015-024

Agency Negotiator G.F. Duerig

Negotiating Party: Dwain Berry, Round Rock Properties, LLC

Under negotiation: Price and terms of payment

Item 3 - Open Session and Report Out of Closed Session

The Board came out of Closed Session at 7:03 p.m. and President Quigley said that no reportable actions had been taken in Closed Session.

Item 4 - Pledge of Allegiance

President Quigley led the Salute to the Flag.

Item 5 -

CITIZENS FORUM

There were no public comments at this time.

Item 6 -

MINUTES OF THE REGULAR MEETING OF DECEMBER 21, 2016

Director Stevens moved that the minutes of December 21, 2016, be accepted and approved, and Director Palmer seconded the motion. The minutes were approved by a voice vote of 7-0.

Item 7 -

CONSENT CALENDER

a. High-Efficiency Clothes Washer (HEW) Rebate Program

b. Accept Fee Property for Access to Arroyo Seco (Line P) and Vacate Abandoned Existing Access Easement

Director Palmer moved to approve Items 7(a) and (b) and Director Ramirez Holmes seconded the motion. The items were passed by a vote of 7-0.

Resolution No. 17-02 Authorized an Agreement to Implement the Extended Regional

High-Efficiency Clothes Washer (HEW) Rebate Program (Item 7a)

Resolution No. 17-03 Authorized a Certificate of Acceptance to Record a Grant Deed from

AK Services, Inc. for the Arroyo Seco Access Road (Line P) (Item 7b)

Resolution No. 17-04 Approved Vacating the Flood Control Access Easement Along the

Arroyo Seco (Line P) (Item 7b)

Item 8 -

STAFFING UPDATE

November Employee of the Month Recognition - Karen Bartels

General Manager, Jill Duerig announced that Karen Bartels, Buyer II in Zone 7's Administrative Services division, was selected as the November Employee of the Month. Karen joined Zone 7 in February 1997 after seven years with the Alameda County Sheriff's Office. She is recognized for her knowledge of the procurement processes along with a very positive attitude and demonstrating an extreme amount of patience and professionalism interfacing with the County and working with staff members as they navigate the procurement process. This is the second time Ms. Bartels has received this award. Director Stevens added that employees like this are what it takes to make this agency run. The board congratulated Ms. Bartels in absentia for her accomplishments.

Item 9 -

COMMITTEES

a. Administrative Committee Meeting - January 4, 2017 - notes

Director Palmer said that as a member of the Administrative Committee Meeting, the notes are complete. No other comments were received.

Item 10 -

REPORTS-DIRECTORS

a. Verbal comments by President

b. Verbal reports

Director Ramirez Holmes attended the East Bay Leadership Council's Task Force on January 17, 2017, in Dublin on Tri-Valley Partnerships on Water Supply. She commended Dr. Amparo Flores on the presentation she gave about water challenges facing businesses and residents along with an update on the Water Policy Roundtables and their work on the Water Supply Evaluation and the Potable Reuse Study, letting folks know how we are working together with the other agencies in the valley. The City of Pleasanton then gave an update on the Recycled Water Program that is currently serving the Hacienda Business Park. Their project on the Valley Avenue Extension is to be completed this spring. The discussions received a lot of positive feedback about how nice it is that both businesses and the public agencies are working together.

Item 11 -

ITEMS FOR FUTURE AGENDA - DIRECTORS

No future items were discussed.

Item 12 -

STAFF REPORTS

a. General Manager's Report

b. Legislative Update

c. Outreach Activities

d. Water Inventory and Demand Update

e. Updates on Water Supply Projects

f. Commercial Cannabis Cultivation in Eastern Alameda County

g. Expansion of the Aquifer Exemption at the Livermore Oil Field

Director Ramirez Holmes asked for a brief update regarding the bank failures and closure of the pedestrian paths highlighted in the General Manager's Report. Ms. Duerig stated that the trails have been closed by the city, which operates the trails under a license agreement with Zone 7. They choose when to close and how to keep the public the safest. Zone 7 will be doing the flood repairs once the banks dry out and the permits and CEQA process is completed.

President Quigley acknowledged the great staff reports (d) and (e) by Dr. Flores and the others.

Director Ramirez Holmes thanked Staff for the updates on the water supply projects stating that they are fantastic and greatly appreciated. Director Palmer pointed out to the public that these reports answer many of their questions about water supply and demand, and the graphs contained at the end of the reports can be found online.

President Quigley asked if DWR has a guess when Lake Del Valle might crest and at what level. Ms. Duerig handed out a summary graph regarding Lake Del Valle Storage between October 1, 2016, to December 31, 2016, which showed the crest seen thus far was at a level of about 49,000 acre feet, but it is currently unknown whether it will crest again. DWR is making releases trying to stay ahead of the storms. There are rules about when and how you can release based on flows through Niles Canyon. Requirements are outlined in the flood control permit that DWR holds from the U.S. Army Corp of Engineers defining certain flood levels, and that is what is shown on the graph. The 49,000-acre foot level that we saw was only in Flood Control Zone 1. Levels go all the way up to Zone 6.

President Quigley and Director Palmer both commented that this chart is on the Department of Water Resources' website under Lake Del Valle and is very interesting. Staff will make sure this is also included in future Water Inventory and Demand Updates.

Ms. Duerig stated that Items (f) and (g) discussed external issues that are going on in eastern Alameda County. With regard to Item 12(f), she introduced two guests in the audience who were present to help answer any questions - Liz McElligott, Assistant Planning Director with the Alameda County Planning Department, along with an officer from the Alameda County Sheriff's Department, should there be questions about the effort or Sheriff Department's position on the cannabis pilot program that is being proposed.

Director McGrail expressed concern that staff expended effort preparing this report and asked why. Ms. Duerig explained that it was put on the agenda at the request of other board members after a member of the public appeared at the December meeting and expressed his concern. Zone 7 has been involved as a part of the Agricultural Committee for the County and the agency tracks it from that standpoint. The agency also anticipates an application for a septic tank waiver for one of the first sites on Flynn Road, so this item is being followed carefully by staff in case concerns related to how it will impact groundwater or water supply arise.

Directors Palmer and Ramirez Holmes expressed concern that fertilizer used during the cultivation of cannabis might potentially impact water usage and the groundwater quality. Director Stevens also expressed concern over the environmental impact that certain poisons could cause to wildlife and our groundwater.

Ms. McElligott explained that she is part of the interdepartmental work group that has been working on the draft ordinances. She added that any technical (or non-technical) comments from Zone 7 will be welcomed and can be submitted at any time throughout the process should there be any additions the agency would care to offer. The draft ordinances include many requirements surrounding compliance with laws and regulations having to do with runoff. The cultivation ordinance would allow only indoor cultivation, so she is not expecting any open fields. Applicants would have to talk about what water supply they plan to use, plus the draft performance standards specifically state that any facility would have to comply with Zone 7 regulations. This will be incorporated into the ordinance. Ms. McElligott also mentioned that they have been in the process of preparing a CEQA document for this and it looks like it will be a Mitigated Negative Declaration, which is expected to be released next week and available to Zone 7 for review and comments.

With regard to Item 12(g), Director Ramirez Holmes asked how staff had expressed concerns (formally or informally) and if they had been resolved. Ms. Duerig stated that Zone 7 has a good relationship with the State Water Board, which has been informally communicating with the agency, as the groundwater management entity in the area, and they have incorporated into the document the agency's information regarding our aquifers and our concerns.

Director Palmer asked if the reinjection process is simply reinjecting water without solvents or emulsifiers and whether or not it includes exerting extra pressure to frack out and release more oil. Ms. Duerig clarified that they pull out the oil/water mixture, remove a large portion of the oil, then put back the cleaned water - to maintain pressures in that very deep zone, much deeper than the drinking water. By doing that, by keeping the deep, oily reservoir full, it keeps the oil floating near the top so it makes it easier to remove.

Director Figuers added that he has gone out there to look at the site and its geology. He has evaluated what they are doing and planning to do. He stated that both as a geologist and as a board member, he has no technical problems with it at all. President Quigley then stated that the staff report was well done and that the weigh-in by the State Water Quality Control Board is positive and benign, which comforts him. Item 13 -

VERBAL REPORTS

Ms. Duerig announced good news: the agency received notification from the Department of Water Resources today stating that they have now increased the 2017 allocation for the State Water Project from 45% up to 60%. This may go even higher with the additional storms that are due.

Item 14 -

ADJOURNMENT

The meeting was adjourned at 7:33 p.m.