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

________________________________________________________________

March 15, 2017

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

OSBORN SOLITEI, ASSISTANT GENERAL MANAGER,

FINANCE/TREASURER

CAROL MAHONEY, MANAGER, INTEGRATED WATER RESOURCES

JOE SETO, PRINCIPAL ENGINEER, FLOOD PROTECTION

LINDA VAN BUSKIRK, BOARD SECRETARY

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 3 -

REPORT OUT OF CLOSED SESSION

The Board came out of Closed Session at 6:55 p.m. At 7:01 p.m., President Quigley called the meeting back into session and asked David Aladjem, Counsel, to report out of Closed Session. Mr. Aladjem stated that the Board met with labor negotiators, legal counsel and real property negotiators in Closed Session. For Items 2(b), (c), (d) and (e), no reportable action was taken. Under Item 2(a) negotiations with labor negotiators, unrepresented management, Assistant General Manager of Finance, there is a proposed resolution for discussion in Open Session by the Board of Directors. President Quigley set the discussion on Item 2(a) for the end of the meeting.

Item 4 -

PLEDGE OF ALLEGIANCE

President Quigley led the Salute to the Flag.

Item 5 -

CITIZENS FORUM: No comments were received.

Item 6 -

MINUTES OF THE REGULAR MEETING OF FEBRUARY 15, 2017

Director Palmer moved that the minutes of February 15, 2017 be accepted and approved and Director Stevens seconded the motion. The minutes were approved by a voice vote of 7-0.

Item 7 -

CONSENT CALENDER

a. Declaration of March 20-26, 2017 as Fix a Leak Week and Declaration of May 2017 as Water Awareness Month

Director Ramirez Holmes moved to approve Item 7(a) and Director Figuers seconded the motion. The item was passed by a voice vote of 7-0.

Resolution No. 17-09 Declared March 20-26, 2017 as Fix a Leak Week and

May as Water Awareness Month

Item 8 -

STAFFING UPDATE

a. New Employee Introduction - Justin West

General Manager, Jill Duerig, announced that Justin West joined Zone 7 as a Water Plant Operator III in the Operations Section. He comes to us with over three years of operations experience, most recently at the City of Fairfield. Justin holds an Associate's degree in Water and Wastewater Technology from Solano Community College in partnership with the Bay Area Consortium for Water and Wastewater Education (BACWWE) program. He holds both Grade 3 Water Treatment and Grade 2 Water Distribution certifications from the State of California. The Board welcomed and applauded Justin West in absentia.

b. Employee of the Month - Jesus Bautista

Ms. Duerig announced that Jesus Bautista, Construction Maintenance Laborer reporting to Barry Ivy, was nominated as Employee of the Month. Jesus was recently recommended through an external nomination from the Tri-Valley Conservancy due to his professionalism and courtesy. He is a true gentleman who maintains a positive attitude and willingness to devote extra effort at work. The board applauded Jesus Bautista in absentia.

Item 9 -

DECLARATION OF LOCAL STATE OF FLOOD EMERGENCY AND AUTHORIZATION OF AMENDMENT TO FANFA CONTRACT TO DO EMERGENCY REPAIRS Joe Seto, Principal Engineer, Flood Protection, gave a brief presentation which highlighted the significant storms that occurred in the Tri-Valley during January and February 2017 and the resulting damage to Zone 7's facilities. To date, Zone 7 identified over 150 sites where damage has occurred to Zone 7's flood facilities as a result of these storms. Repair and construction estimates are greater than $10,000,000.

In response to questions from Director Ramirez Holmes regarding emergency projects and the permitting process, Staff responded that one of the advantages of the emergency process that staff is recommending this evening for the most critical projects is that the Agency can streamline the procurement/contracting process, which can often take several months. Staff is recommending this for these critical projects since it is important to move forward quickly to minimize further damage. The permitting process remains the same. There is no relaxing, streamlining or fast tracking of permitting for these projects despite the fact that it is an emergency.

President Quigley asked if there were any comments from the public. There were none.

A motion was made by Director Palmer to declare a locate state of flood emergency, and it was seconded by Director Figuers. The motion was passed by a roll call vote of 7-0.

Resolution No. 17-10 Declared a local state of flood emergency

A second motion was made by Director Palmer to approve a contract amendment with Fanfa, and it was seconded by Director Figuers. The motion was passed by a roll call vote of 7-0.

Resolution No. 17-11 Authorized amending the contract with Fanfa, Inc., for emergency

work for Zone 7's flood facilities

Item 10 -

PRIVATE LANDOWNER REQUEST FOR ASSISTANCE ON ARROYO DE LA LAGUNA

Ms. Duerig introduced Carol Mahoney, Manager of Integrated Water Resources, who provided a brief overview and history of the Arroyo de la Laguna - Verona Reach. She described the general approach in the Stream Management Master Plan for the reach, a nearby demonstration project and the need for funding partners such as NRCS. She then provided and a storm damage response timeline from January through March 2017. Ms. Mahoney then introduced Paul Frank, P.E., the Design Team Lead with Flow West, who discussed site conditions, progress to date, a possible path forward to design and proposed actions regarding the emergency permit application to the U.S. Army Corps of Engineers with proposed timelines.

The Board expressed its empathy toward the homeowners and commented that it would help. A discussion ensued regarding the suggested options outlined in the revised resolutions. Staff added that there may be other opportunities that have not yet been identified that could be revealed through further discussion or that more than one resolution could be adopted, such as local sponsorship plus establishing a local emergency grant program for Verona Reach.

In response to questions about what exactly local sponsorship means and the approximate timeline for receipt of federal funds, Staff responded that it is a program through the federal government where the Natural Resources Conservation Service (NRCS) provides assistance in protecting private property up to 75% of the value of the structure that is being threatened. A local sponsor is required to assure that the project is managed. It might take up to a year to get the funds which then go directly into reimbursing Zone 7 for contracts for design and construction. The agency would front the money and then be reimbursed for a portion of it. Actual construction cannot start until a permit is in place. The timeline for an emergency permit is likely one to two weeks.

President Quigley asked if there were any comments from the public.

Public Comments:

President Quigley read a letter left by Tim Sbranti, Deputy Chief of Staff/District Director from Congressman Eric Swalwell's office into the record: "On behalf of Congressman Eric Swalwell, I wanted to let the Board know that our office has been working closely with Zone 7, the City of Pleasanton and the Army Corps of Engineers to ensure that the necessary repairs are made to the arroyo to prevent the potential catastrophic loss of life and property. We are hopeful that the Board will direct staff to move forward tonight and complete the work. The Congressman and our office will remain committed to assisting as needed to help expedite the permits and secure some emergency funding. Once the short term emergency repairs are completed, we look forward to working with Zone 7, the City of Pleasanton, the relevant state and federal agencies, and the property owners to assist with the long-term fixes that are needed for the arroyo's sustainability."

Julia Shin, Pleasanton, said she and her husband purchased the property on Foothill Road in 2012. She discussed development in the area. She expressed concern for her neighbor's house which is in critical condition. She urged the Board to provide immediate corrective action and longer term solutions by providing local sponsorship.

Ann Chen, Pleasanton, spoke regarding the erosion problem and said the new developments, as Julia Shin previously mentioned, contributed to the increased water flow into the flood control channel and through the Arroyo de la Laguna. She said that Zone 7 holds an easement along the arroyo and across nine lots to construct, maintain, operate, inspect, and repair flood control facilities and appurtenances, and therefore she and the other eight homeowners believe maintenance of the Arroyo de la Laguna is the responsibility of Zone 7.

Ted Smith, Pleasanton, stated he was the first of the nine homeowners who built in the area in question. He said the staff report is inaccurate as it addresses the erosion problem as a result of the recent storms. He said this has been going on for three to five years. He urged the Board to become the local sponsor and to get the necessary permits expedited.

Eddie Belshe, Pleasanton, thanked the Board members who visited the site. He expressed concern that the S-curve has been created over the last 17 years due to continued development which funnels water through the ADLL and has led to the erosion. He does not believe this is an Act of God. He encouraged the Board to step up and do the right thing by sponsoring the project and making the necessary repairs.

Yoshiko Sato, Pleasanton, brought a map to reference as she discussed easements. They had purchased Lot 9 in 2011 next door to her parents on Lot 8. She said their lot is the only one with access to the creek. At that time they had contacted Zone 7 to find out the purpose of the easement and they were told by Dennis Gambs, the Real Property Services Manager at Zone 7, that Zone 7 has the responsibility to maintain the Arroyo de la Laguna located behind the lot and the neighboring nine-home development. She said that just last summer they were told be ready to see some big equipment coming in because there was going to be work done in the creek and that they felt very safe knowing that Zone 7 was maintaining the creek.

Ginger Belshe, Pleasanton, thanked the Board members for listening and for visiting the site. She also thanked Zone 7 Staff, saying that this gave her hope. She stated that the staff report on page 3 mentioned discussions with the property owners, but that did not happen. She expressed concern over the safety of the ACE train.

David Raun, Pleasanton, addressed the Board and urged Zone 7 to do the right thing and help the homeowners.

Janice Smith, Pleasanton, stated she was one of the first buyers in the area. She spoke about the easements Zone 7 has on the properties for the purpose of maintaining and repairing the arroyo. She thanked Zone 7 for what it has done so far, and further urged the Board to do the right thing and become the local sponsor to help save homes and solve this problem.

Lori Raun, Pleasanton, spoke regarding the changes they have witnessed in the creek over the 20 years they have lived there and shared photos with the Board to show the changes. She stated that they were never approached by Zone 7 about a proposal, project or plan regarding erosion issues. She thanked the Board members who visited the homes today and urged others to see the level of disaster that has occurred, which she believes could have been prevented if Zone 7 regularly monitored, maintained and managed the arroyo. She urged the Board to help the homeowners by becoming their local sponsor.

Sanjeev Taran, Pleasanton, spoke regarding the funds available to Zone 7 to support the fix which the homeowners are asking for. He shared a copy of Total Revenues from the Zone 7 website with the Board. He urged the Board to be the local sponsor and help remedy the situation.

Bill Siamas, a Pleasanton resident of 30 years, spoke in support of his friends, the Rauns, and their neighbors. He urged the Board to adopt an emergency measure to repair the affected areas, particularly the areas by the Rauns and the Belshes and to maintain the easement in order to protect these homes.

John Vest, General Manager at Castlewood County Club, spoke in support of his neighbors on the other side of the arroyo. He stated he has seen the S-curve move quite a bit over time. He encouraged the Board to direct staff to come up with a solution that will address the entire Verona Reach.

Scott Alcaide, Pleasanton, spoke in support of funding a fix for the Verona Reach because it is important and is the right thing to do.

Tom Coleman, Pleasanton, encouraged the Board to do the right thing. He spoke in support of a permanent fix that will affect the entire Verona Reach.

Tim Hunt, a Pleasanton resident on Foothill Road since 1958, spoke about engagement with Zone 7 back in 1996-97 when similar changes to yards were happening. He complimented Carol Mahoney for the history she presented. Due to the current crisis, he expressed full support of emergency measures and urged the Board to act on those, become the local sponsor, and do the right thing for the whole reach.

Steve Kirkpatrick, representing the City of Pleasanton, City Manager's office, thanked Ms. Duerig and Ms. Mahoney for educating everyone on the work that has been going on. On behalf of Mr. Fialho, who could not be present at the meeting, Mr. Kirkpatrick read into the record Mr. Fialho's March 15, 2017 letter to the President and Members of the Board of Zone 7 which has been added to the posted staff report on the website.

Richard Price, Pleasanton, husband of Yoshiko Sato who spoke earlier, addressed the Board regarding conversations over the past four years with Zone 7 as people came through their easement to access the arroyo that consistently expressed that Zone 7 would maintain the creek. He urged the Board to become the local sponsor.

Director Greci expressed empathy towards the homeowners for their loss and encouraged his fellow board members to support being a local sponsor. He commended staff for the preliminary work being done.

Director McGrail concurred with Director Greci. He urged the residents to engage the City of Pleasanton who issued those building permits and approved the engineering on those lots. He further encouraged a collaborative effort in order to get help from other people/agencies who he stated should have been paying attention.

Director Figuers moved to approve Resolutions 2 and 3(b).

Director Palmer stated this is a regional issue and encouraged cooperation with the City of Pleasanton.

Director Ramirez Holmes thanked the homeowners for coming to the meeting and sharing their personal stories about what their dreams were for ownership of the homes and their future. She expressed her support for becoming a local sponsor and authorizing the work to be done. She further stated that she would like to see Staff work on partners to figure out the 25% portion. She expressed appreciation to the City of Pleasanton for its willingness to work on interagency issues. She would like to see continued discussions regarding solving long-term issues about development and how we handle storm water runoff and how to solve the issues of the reach. Additionally, she would like to see a commitment to a regular outreach with folks in order to provide regular updates as thing progress through the timeline.

In response to Director Stevens' question about the flow of water released from Lake Del Valle, Staff responded that the lake is operated by the Department of Water Resources under a U.S. Army Corps of Engineers permit. Zone 7 is in contact with the DWR and usually knows in advance when they will be releasing water. Although Zone 7 can make requests related to flows, it is ultimately up to DWR to decide if and when releases will occur.

President Quigley added his support for being a local sponsor. He expressed delight at receiving Nelson Fialho's letter from the City of Pleasanton offering collaborative support, as well as that from Tim Sbranti from Eric Swalwell's office. He thanked the public for coming to the meeting.

Director Figuers moved to approve Item 10 (example #2) and Director Ramirez Holmes seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-12 Authorized Local Sponsorship of Emergency Watershed

Protection Program (Item 10, revised resolution #2)

Director Palmer moved to approve Item 10 (example 3a) and Director Ramirez Holmes seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-13 Authorized a Design Services Contract with FlowWest for

Emergency Work (Item 10, revised resolution #3a)

Director Ramirez Holmes moved to approve Item 10 (example 3b) and Director Palmer seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-14 Authorized an Amendment to the Contract with Fanfa, Inc.,

or Equivalent, for Emergency Construction Work (Item 10,

revised resolution #3b)

Director Ramirez Holmes proposed an additional motion to direct staff to work on partners and collaboration process with the City of Pleasanton, Congressman Swalwell's office and others as well as outreach for the affected neighbors and to keep discussing through regular communication the long-term solutions for the Arroyo de la Laguna and the Verona Reach and the SMMP projects. The motion was seconded by Director Palmer. The motion passed by a voice vote of 7-0.

[The Board took a short break at 9:16 p.m. President Quigley called the meeting back to order at 9:22 p.m.]

Item 11 -

AUTHORIZATION FOR LARPD TO MANAGE WEED CONTROL SPRAYING SERVICES

Joe Seto, Principal Engineer, Flood Protection, gave a brief verbal presentation on the topic. In April 2014 the Board approved and authorized the General Manager to execute a one-year contract with the Livermore Area Recreation and Park District (LARPD), which allowed for two additional one-year extensions in FY 2015/16 and FY 2016/17. Mr. Seto highlighted Staff's recommendation for the continued use of LARPD under the Intergovernmental Reciprocal Services Master Agreement (IRSMA) because of the following reasons:

. Both agencies can use common resources effectively;

. It reduces costs; . It increases efficiency;

. LARPD has adequately trained and certified crew and equipment;

. In the past three years, LARPD has demonstrated a good understanding of Zone 7's needs and regulatory requirements;

. LARPD has an established safety program and procedures;

. LARPD has an Integrated Pest Management (IPM) program that they have implemented which has reduced the amount of chemicals used near the creek facilities.

Due to the high level of demands on Staff resources during the current flood emergencies, Staff recommended a one-year extension before rebidding this project by executing a Task Order with LARPD for the weed control spraying contract for FY2017-18. Mr. Seto pointed out that Mr. Bruce Aizawa from LARPD was in the audience. He is an IPM expert.

Director McGrail moved to approve Item 11 and Director Ramirez Holmes seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-15 Authorized Task Order with LARPD for weed control spraying

services

Item 12 -

CONTRACT AMENDMENT FOR EMERGENCY REPAIR OF THE HOPYARD PIPELINE

Kurt Arends, Assistant General Manager, Engineering, presented the staff report.

Director Palmer moved to approve Item 12 and Director McGrail seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-16 Authorized a contract amendment with Monterey Mechanical for the

emergency repair of the Hopyard Pipeline

Item 3 - Open Session and Report Out of Closed Session (continued)

President Quigley reopened Item 3 to discuss and act on the proposed resolution from Item 2(a), a footnote for the Zone 7 treasurer.

Director McGrail moved to approve Item 2(a) and Director Palmer seconded the motion. Director Ramirez Holmes proposed an amendment to the motion to change the effective date from September 21, 2016 to January 1, 2017 and Director Palmer seconded the motion. The amended item was passed by a roll call vote of 7-0.

Resolution No. 17-17 Approved Appendix A, Footnotes to Salary Schedules Section 4.14 -

Treasurer, effective for the period starting January 1, 2017.

Item 13 - Committees - none

Item 14 -

REPORTS-DIRECTORS

a. Verbal comments by President

b. Written Report by President Quigley

c. Verbal reports

President Quigley complimented Zone 7 staff for participating in the Alameda County Science and Engineering Fair on Saturday, March 11th.

Director Palmer attended the Los Vaqueros Reservoir Expansion Project Presentation and Tour on February 17th. She also attended the ACWA Conference in Washington, D.C. February 28th - March 2nd. She reported it was good to hear about the bipartisan Water Infrastructure Improvements for the Nation (WIIN) Act. She said it was heartening and worthwhile to hear differing points of view.

Director Ramirez Holmes also attended the Los Vaqueros Reservoir Expansion Project Presentation and Tour. She encouraged other board members to visit if they were unable to make it to the February 17th Special Board Meeting. She further reported that she attended the Pleasanton State of the City Address on February 22nd where the ongoing commitment to water conservation and the recycling project that is underway in Pleasanton was discussed.

Director McGrail reported that he also attended the Los Vaqueros Reservoir Expansion Project Presentation and Tour. He complimented those who put the project tour together and encouraged Staff to work in collaboration with Contra Costa Water District as this effort moves forward.

Item 15 -

ITEMS FOR FUTURE AGENDA - DIRECTORS No future items were discussed.

Item 16 -

STAFF REPORTS (Information items. No action will be taken.)

a. General Manager's Report

b. Legislative Update

c. Outreach Activities

d. Water Inventory and Demand Update

e. Update Related to the Cal WaterFix (former Bay Delta Conservation Plan)

f. Verbal reports

Ms. Duerig briefly discussed two items. The first was that the ACWA Board had just adopted a new "ACWA Policy Statement on Bay-Delta Flow Requirements."

Ms. Duerig then reported that five to six employees plan to retire by the end of March. Additionally, Kurt Arends, Assistant General Manager, Engineering resigned his position to return to Santa Clara Valley Water District. Mr. Arends said it has been a pleasure serving the Board and working with Staff and thanked the Board for those opportunities. The Board congratulated Mr. Arends.

Ms. Duerig stated that the Flood Control section, normally a six-person staff, has been very limited at this time due to two retirements and one employee on a military leave of absence. She commended Mr. Seto for his miraculous accomplishments in the last few weeks under these circumstances.

Item 17 -

ADJOURNMENT

The meeting was adjourned at 9:38 p.m.