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

________________________________________________________________

REGULAR MEETING

February 21, 2018

The following were present:

DIRECTORS: SANDS FIGUERS

JOHN GRECI

ANGELA RAMIREZ HOLMES

SARAH PALMER

RICHARD QUIGLEY

BILL STEVENS

DIRECTORS ABSENT: JIM McGRAIL

ZONE 7 STAFF: JILL DUERIG, GENERAL MANAGER

OSBORN SOLITEI, TREASURER/ASSISTANT GENERAL MANAGER, FINANCE

RHETT ALZONA, PRINCIPAL ENGINEER, FACILITIES ENGINEERING

LINDA VAN BUSKIRK, EXECUTIVE ASSISTANT

GENERAL COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 1 - Call Meeting to Order

President Greci called the meeting to order at 9:00 a.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 Negotiator: G. F. Duerig

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

(b) Conference with Legal Counsel - Existing litigation pursuant to Government Code §54956.9(d)(1): 2 cases

(1) Zone 7 v. Bhupinder Singh, et al., Alameda County case no. RG17862001 and related cross action

(2) Edwin Belshe and Ginger Belshe v. Alameda County Flood Control and Water Conservation District, Zone 7,

et al., Alameda County Superior Court Case No. RG17868354

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

3 cases

(d) Conference with Legal Counsel - Potential litigation pursuant to Gov't Code section 54956.9(d) (4): 2 cases

(e) Conference with Legal Counsel regarding retirement of General Manager pursuant to Government Code §54957

Director Stevens left the meeting prior to the Open Session.

Item 3 -

OPEN SESSION AND PLEDGE OF ALLEGIANCE

President Greci called the meeting back into session at 7:00 p.m. and led the Salute to the Flag.

Item 4 -

REPORT OUT OF CLOSED SESSION

President Greci reported that the Board met in Closed Session on the items on the agenda and no reportable actions were taken.

Item 5 -

CITIZENS FORUM Dennis Gambs, a candidate for the Zone 7 Board of Directors, addressed the Board regarding the process for selection of a new General Manager. He suggested that the public have an opportunity to review a draft contract before it is approved and then once approved that it be posted to the Agency's website.

In response to Director Ramirez Holmes' question about the contract that will be extended to the new General Manager being included in an agenda packet prior to the board meeting, Counsel David Aladjem confirmed that yes, the contract including compensation will be presented to the Board during Open Session for approval.

Item 6 -

APPROVE MINUTES OF THE REGULAR BOARD MEETING OF JANUARY 17, 2018

Director Palmer moved to approve the minutes of January 17, 2018 and Director Quigley seconded the motion. The minutes were approved by a voice vote of 5-0, with Directors McGrail and Stevens absent.

Item 7 -

CONSENT CALENDAR

a. Declaration of March 11-17, 2018 as National Groundwater Awareness Week and March 19-23, 2018 as Fix a Leak Week

b. Zone 7 Conflict of Interest Code - Biennial Review

c. Adding Funds to Solid Waste Disposal Services Contract

Director Ramirez Holmes moved to approve Items 7(a)(b) and (c) and Director Palmer seconded the motion. The items were passed by a roll call vote of 5-0, with Directors McGrail and Stevens absent.

Resolution No. 18-05 Declared March 11-17, 2018 as "National Groundwater Awareness

Week" and March 19-23, 2018 as "Fix a Leak Week" (Item 7a)

Resolution No. 18-06 Approved the Zone 7 Conflict of Interest Code - Biennial Review

(Item 7b)

Resolution No. 18-07 Authorized a Services Contract with Waste Management Disposal

Services, Inc. for Solid Waste Disposal Services (Item 7c)

Item 8 -

STAFFING UPDATE

Item 8a - Employee of the Month Recognition

Ms. Duerig announced that Bill Sadler, Water Facilities Supervisor in the Operations section, was selected as the Employee of the Month. Bill has been with Zone 7 since 2013. He oversees the wellfield operations and the Mocho Demineralization Plant and is dedicated to assuring operations run smoothly. He is recognized for being a great team player as he interfaces with many other sections throughout the Agency. He is a very knowledgeable expert in the field and consistently works with project teams to solve issues. He has received multiple kudos from staff and the public. Mr. Sadler was present in the audience and the Board congratulated him for his accomplishments.

Item 8b - New Employee Introduction

Ms. Duerig introduced two new employees who joined Zone 7 in January; Stephen Greer and Miles Hallock.

Stephen Greer came to us from the City of Modesto where he worked as a Utilities Plant Operator I. Prior to Modesto, he worked at the Dublin San Ramon Services District. He holds Grade 2 certifications in both Water Treatment and Water Distribution from the State of California as well as a Grade 3 certification as a Wastewater Treatment Plant Operator. The Board welcomed Stephen Greer in absentia.

Miles Hallock joined us from the City of Sacramento where he worked as a Junior Operator. Miles holds Grade 2 certifications in both Water Treatment and Water Distribution from the State of California. The Board welcomed Miles Hallock in absentia.

Item 9 -

Award of Construction Contract for the Mocho 2 Well Repair Project

Rhett Alzona, Principal Engineer in the Facilities Engineering section, presented the staff report on the bids received for the Mocho 2 Well Repair Project. He explained that the project is essentially replacing the well pump and a damaged catch basin for the well-to-waste line. The project was advertised for bids in accordance with the California Public Contract Code. One bid was received from Commercial Pump and Mechanical, Inc. (CPM). Zone 7 Staff reviewed the bid and has determined CPM to be the lowest responsive and responsible bidder with a bid of $235,222. The Staff recommended the Board approve and accept the bid and award a contract to Commercial Pump and Mechanical, Inc. (CPM) in an amount not-to-exceed $235,222.

President Greci asked for public comment. None was received.

Director Quigley moved to approve Item 9 and Director Ramirez Holmes seconded the motion. The item was passed by a roll call vote of 5-0 with Directors McGrail and Stevens absent.

Resolution No. 18-08 Authorized the award of a construction contract to Commercial

Pump and Mechanical, Inc. (CPM) for the Mocho 2 Well Repair

Project (Item 9)

Item 10 -

AUTHORIZING THE AUDITOR-CONTROLLER OF ALAMEDA COUNTY TO ISSUE PURCHASE ORDERS FOR THE AGENCY USING ZONE 7 FUNDS ON DEPOSIT WITH THE COUNTY TREASURY

Osborn Solitei, Treasurer/Assistant General Manager, Finance, presented the staff report which highlighted the Agency's Purchasing Policy, adopted by the Board in June 2017, to purchase goods and services in a manner providing the greatest value at the minimum cost to the public served by Zone 7 and to ensure that purchasing and bidding requirements are in accordance with Section 54201 et seq. of the government Code of the State of California. In order to streamline the purchasing process, staff recommends that the County Auditor-Controller issue purchase orders for the Agency using Zone 7 funds on deposit with the County Treasury. He stated that anything over $50K will still come to the Board. This process was discussed with the County and they were amenable to streamlining the process in this manner.

Director Ramirez Holmes thanked Staff for meeting with the County to discuss streamlining the process.

President Greci asked for public comment. None was received.

Director Quigley moved to approve Item 10 and Director Ramirez Holmes seconded the motion. The item was passed by a roll call vote of 5-0 with Directors McGrail and Stevens absent.

Resolution No. 18-09 Authorized the Auditor-Controller of Alameda County to issue

purchase orders for the Agency using Zone 7 funds on deposit with

the County Treasury (Item 10)

Items 11 -

Payoff of the Semitropic Stored Water Recovery Unit Project Capital Payment

Mr. Solitei presented the staff report regarding payoff of the Semitropic Stored Water Recovery Unit (SWRU) Project Capital Payment. He explained that participation in this project began in 2004. Zone 7's proportional share (6.5%) results in an annual payment of $49,178 coming from Fund 130. The $10.5 million pipeline portion of the SWRU project was financed by 30-year bonds with an interest rate of 5.266%. The Agency negotiated with Semitropic and they agreed to give Zone 7 a 2% discount. Early payoff will net the Agency a savings of $120,000. The Staff recommended authorization to appropriate $670,000 from Fund 130 - Water Enterprise Expansion capital project reserves.

Directors Palmer expressed support for that amount of savings. Director Quigley stated that the Finance Committee also expressed support for the payoff.

Director Quigley moved to approve Item 11 and Director Palmer seconded the motion. The item was passed by a roll call vote of 5-0 with Directors McGrail and Stevens absent.

Resolution No. 18-10 Authorized payoff of the Semitropic Stored Water Recovery Unit

Project Capital Payment (Item 11)

Item 12 -

COMMITTEES: FINANCE COMMITTEE MEETING, FEBRUARY 14, 2018

No comments or changes were made to the Finance Committee meeting notes.

Item 13 -

REPORTS - DIRECTORS

a. Verbal comments by President

b. Verbal reports

Director Palmer reported that she attended the ACWA Water Management Committee meeting on February 7th, and an ACWA Water Quality Committee meeting on February 13th. She further reported that she attended a presentation along with Carol Mahoney, Manager of Integrated Water Resources, on a talk about climate change by Dr. Roger Bales at the Bankhead Theater.

Item 14 -

ITEMS FOR FUTURE AGENDA

Director Ramirez Holmes inquired about the status of the boardroom sound system. Further discussion ensued with a representative of Spinitar who addressed the issue of sound cutting in and out. An automatic mixer and new microphones will be installed and the sound system will be fine-tuned at that time.

Director Ramirez Holmes stated that she has been approached by the community regarding increasing the visibility of Zone 7's building signage, especially during evening meetings. She inquired about the possibility of adding lighting and asked that this be evaluated and added as a future agenda item.

Director Quigley inquired about a study to install solar panels at the main office building facility. He expressed interest in seeing an item to discuss how much this will save the Agency. Ms. Duerig replied that this may be coming to the Board for approval in March.

Item 15 -

STAFF REPORTS

(Information items. No action will be taken.)

a. General Manager's Report

b. Legislative Update

c. Outreach Activities

d. FY 2017-18 Unaudited Second Quarter Revenue and Expenditure (R&E) Report

e. Investment Report as of December 31, 2017

f. Water Inventory and Water Budget Update

g. Capital Projects Status Report

h. Verbal reports

Ms. Duerig invited any questions on the staff reports.

Director Ramirez Holmes pointed out the update on the Sites Reservoir contained in the General Manager's Report (Item 15a) which includes the public benefits and an informational webpage address the provides additional documents and video.

Director Ramirez Holmes mentioned that the information contained in the Investment Report as of December 31, 2017 (Item 15e) was presented at the February 14th Finance Committee meeting. This is the first investment report received since the policy has been put into place and has been a good learning experience for those on the Finance Committee. It discusses how the Agency chooses investments based on direction in the Board policy.

Item 22 -

ADJOURNMENT

The meeting was adjourned at 7:23 p.m.