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

________________________________________________________________

REGULAR MEETING

June 20, 2018

The following were present:

DIRECTORS: SANDS FIGUERS

SARAH PALMER

RICHARD QUIGLEY

BILL STEVENS

DIRECTORS ABSENT: JOHN GRECI

ANGELA RAMIREZ HOLMES

ZONE 7 STAFF: VALERIE PRYOR, GENERAL MANAGER

OSBORN SOLITEI, TREASURER/ASSISTANT GENERAL MANAGR, FINANCE

NZINGA ARRINGTON, ACTING EXECUTIVE ASSISTANT

JEFF TANG, ASSOCIATE CIVIL ENGINEER

KERRI SMYTH, JUNIOR ENGINEER

RHETT ALZONA, PRINCIPAL ENGINEER

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 1 - Call Meeting to Order

Director Palmer called the meeting to order at 7:00 p.m.

Item 2 - Closed Session

Closed Session was not held.

Item 3 -

OPEN SESSION AND PLEDGE OF ALLEGIANCE

Director Palmer led the Salute to the Flag.

Item 4 - Report Out of Closed Session

Director Palmer reported that the Board did not meet in Closed Session.

Item 5 -

CITIZENS FORUM

Karen Anderson, citizen of Livermore thanked the agency that the Arroyo Mocho project will be reviewed a little longer. Ms. Anderson left posters with historical photos of the area and the animals that reside there for review. She also stated that the California Tiger Salamander has been reported to have been seen in the area by a resident contrary to what was published in the report. Ms. Anderson will be checking with Livermore City Council regarding some of the issues with the trees that may not be in compliance with U.S. Fish and Wildlife Service.

Item 6 -

MINUTES OF THE REGULAR BOARD MEETING OF MAY 16, 2018 AND MINUTES OF THE SPECIAL BOARD MEETING OF JUNE 6, 2018

Director Quigley moved to approve the revised minutes of May 16, 2018 and Director Figuers seconded the motion. The minutes were approved by a voice vote of 4-0 with Directors Greci and Ramirez Holmes absent. Director Palmer stated revisions that should be made to the minutes of June 6, 2018 and Director Figuers moved to approve the minutes with changes. Director Stevens seconded the motion. The minutes with changes were approved with a voice vote of 4-0 with Directors Greci and Ramirez Holmes absent.

Item 7-

CONSENT CALENDAR

a. Purchase Liebert UPS Equipment from Norman S. Wright, Inc.

Valerie Pryor and Colter Anderson explained that the three Uninterruptable Power Supplies (UPS) are over fifteen years old and are considered obsolete and require immediate maintenance as the replacement parts are no longer being produced. This is a large battery pack that provides interim power during a brief period of time during a power failure until the emergency generator comes on. The UPS also provides protection during rolling brown outs and power surges to protect the equipment. The Department is proposing to purchase one 50 kilowatt Amp to satisfy the existing demand at a lower purchase price that three smaller units.

Liebert has made all of the other UPS equipment at the other plant and it is more efficient and saves money to have one set of maintenance contracts instead of different kinds of manufacturers and maintenance contracts throughout the plants. Liebert UPS system was approved by the County as a Sole-Source service and the Norman S. Wright Mechanical Equipment Corp is the only authorized Liebert Representative on the San Francisco Area.

Director Palmer stated that a member of the public questioned in an email whether there is a problem having one unit as opposed to multiple units for a potential power failure. Ms. Pryor answered no, even three units would function as one unit. It would either be three packs adding up to the total amount or one battery pack. Director Figuers stated that three battery packs would provide redundancy. Mr. Andersen responded that each battery pack works in parallel. Member of the public, John Bauer, citizen of Pleasanton stated that he was the person who sent the email and that there were a number of technical and business related issues that should be vetted before this purchase is approved. UPS fail often and if one fails you have lost the load that connects that one UPS and what is being considered now is one and if that one fails, the whole load fails as well as what is being backed up. Mr. Bauer went on to state that Norman S. Wright is a distributor, not a manufacturer. There are other distributors that could be used. Mr. Bauer questioned why Alameda County did not agree with the terms and conditions and asked if that information could be shared with the public. He also asked if this would be needed for the Del Valle Water Treatment Plant Ozonation Project and shouldn't it be packaged with that project. Ms. Pryor answered that the issues the County had were more legalese regarding the terms and conditions such as "hold harmless and indemnify officers of the County of Alameda" and the manufacturer wanted it to say "hold harmless and indemnify officers of Zone 7," it wasn't substantial issues. Director Quigley asked if there were several UPS equipment that the agency has. Ms. Pryor stated that this unit is for the existing and that the Ozonation Project would have a different one. Mr. Anderson stated that there are several UPS' of different sizes. This one will be a little larger since it is for the Treatment Plant. Patterson Pass also has one. Directors Figuers and Quigley asked if this UPS would run SCADA. Mr. Anderson confirmed that it would be.

Director Stevens moved to approve Item 7a and Director Quigley seconded the motion. The item passed with a voice vote of 3 - 1 with one abstention by Director Figuers, and Directors Greci and Ramirez Holmes absent.

Resolution No. 18-46 Replacing UPS Equipment

STAFFING UPDATE

Item 8a. Employee of the Month

Ms. Pryor announced the employee of the month, Mike Garguilo, Water Resources Technician II. Mr. Garguilo was nominated for going above and beyond in his assistance with one of Integrated Planning's rangeland improvement projects at the Lake Del Valle property. Staff appreciated how they were able to completely rely on Mike for successful completion of this project requirement. Also noted is that recently, Mike successfully coordinated Zone 7's semi-annual groundwater level and surface elevation surveys.

Item 8b. New Employee Introduction

Ms. Pryor introduced new employee, Kerri Smyth. Ms. Smyth accepted a permanent position on June 3, 2018 as a Junior Engineer in the Flood Control section, reporting to Joe Seto. Ms. Smyth began a TAP assignment with Zone 7 in May 2017.

Item 9

APPOINTMENT OF PRESIDENT PRO TEM FOR JULY MEETING

David Aladjem stated that as President Greci was not re-elected and Vice-President McGrail has passed away, there would not be a President or Vice-President at the start of the July Board meeting. The appropriate procedure would be to designate a President Pro Tem to start that meeting, conduct the elections and move forward. Director Palmer recommended Director Figuers as President Pro Tem and Director Stevens seconded the motion. Director Figuers accepted.

Item 10

AUTHORIZING THE GENERAL MANAGER TO NEGOTIATE AND EXECUTE CONTRACTS WITH THE AGENCY WATER CHEMICAL SUPPLIERS

Mr. Osborn Solitei explained the Agency will be performing it's water chemical purchasing process, competitive bids, advertising, negotiate and execute contracts etc. and the County of Alameda will issue purchase orders only for the Agency using Zone 7 funds on deposit with the County Treasurer. Director Palmer inquired if whether the County has agreed to this process. Mr. Solitei answered yes.

Director Stevens moved to approve Item 10 and Director Quigley seconded the motion. The item passed with a vote of 4-0 with Directors Greci and Ramirez Holmes absent.

Resolution No. 18-47 Authorizing the General Manager to negotiate and execute contracts with the Agency water chemical suppliers

Item 11

AWARD OF ON-CALL CONSTRUCTION AND EMERGENCY SUPPORT SERVICES CONTRACTa>

Rhett Alzona announced that GradeTech was the lowest and responsible bidder for this three-year contract for $1.47 million. The services are to supplement the Agency's own workforce as needed in order to complete small repair and construction jobs and emergency work in a timely manner.

Linda Kelly, citizen of Pleasanton stated that she did not see on the website a meeting on May 24, 2018 where the bids were publically read. Mr. Aladjem stated that in the Public Contract Code context, public means not in private and it really refers to all of the bidders. It does not require a public board meeting.

Item 12

PROPOSED TWO-YEAR BUDGET FOR FISCAL YEARS 2018-20

Mr. Solitei presented the Agency Two-Year Budget for Fiscal Years 2018-20. A Board Budget workshop was held on June 6, 2018. The two-year budget contains a total appropriation of $342.6 million, with $199.8 million in the first year and $142.8 million in the second year and assumed a 17% conservation rate for FY 2018-19 and 15% for FY 2019-20. A mid-cycle review budget for FY 2019-2020 will be performed in the spring of 2019. The adopted budget provides the same level of service as the current year budget with no increase in staff or additional programs. Staff recommended the board adopt the resolution approving the proposed Two-Year Budget for Fiscal Years 2018-20.

John Bauer, citizen of Pleasanton stated that during the drought he utilized the recycled water offered at Dublin San Ramon Services District during the drought to keep his lawn alive. This service is no longer offered and at that time it was mentioned that the water rates stayed the same, but the reserves went down. He stated that Zone 7 appears to have a higher percentage of reserves than other municipalities and that maybe it should be addressed down the line. Director Figuers stated that when the reserves drop the mandate is to start the following year to bring it back up immediately. This would increase the water rates for a couple of years. Director Palmer stated that a report would be coming out in October that input can be given to. She confirmed this with Mr. Solitei.

Director Quigley moved to approve Item 12 and Director Stevens seconded the motion. The item passed with a vote of 4-0 with Directors Greci and Ramirez Holmes absent.

Resolution No. 18-48 Adopt the Proposed Two-Year Budget for Fiscal Years 2018-20

Item 13

DEVELOPMENT IMPACT FEE STUDY AND FINANCING STRATEGY FOR THE STREAM MANAGMENT MASTER PLAN AMENDMENT

Jeff Tang explained that the purpose of the SMMP amendment is to update and/or revise the 2006 project list and try to determine what new projects might need to be implemented based on recent hydrologic and hydraulic modeling and ecological assessments completed in the Livermore Valley while trying to meet the 2006 objectives.

Since 2006 Zone 7 has participated in about seven different projects that were carried out by various agencies along with Zone 7. Currently the SMMP amendment is proposing twenty-five potential projects down from the original forty-five projects. A new development impact fee (DIF) and study needs to be completed to analyze funding and prioritization of the projects. Zone 7 sent a out a request for proposals and HDR was selected by staff.

Dennis Gambs, citizen of Livermore stated that the purpose and study does not seem aligned and other funding sources should be used. Such as trails is included but Zone 7 has never financed in trails, that is done by the cities. Ms. Pryor stated that it is a two part study, one is the development impact fee for development impacts and part two is the financing strategy for the overall SMMP not just the development impact part.

Director Quigley moved to approve Item 13 and Director Figuers seconded the motion. The item passed with a vote of 4-0 with Directors Greci and Ramirez Holmes absent.

Resolution No. 18-49 Development Impact Fee Study and an Initial Financing Strategy for the Stream Management Master Plan Amendment

Item 14

COMMENDATION FOR FORMER GENERAL MANAGER, MR. MUN MAR

Director Palmer read the commendation for former General Manager, Mun Mar who served the agency from 1958 until his retirement in 1990. Mr. Mar passed away on May 6, 2018. Mr. Mar assisted Zone 7 recently with information shared in the 60th Anniversary Booklet.

Item 15

COMMENDATION FOR PRESIDENT JOHN GRECI

Director Palmer read the commendation for Director Greci. Director Greci served on the Board of Directors for twenty-four years and served four terms as President.

Director Quigley moved to approve Item 15 and Director Palmer seconded the motion. The item passed with a vote of 4-0 with Directors Greci and Ramirez Holmes absent.

Item 16

REPORTS - DIRECTORS

Director Palmer reported that she attended the ACWA Region 1 Tour on June 15, 2018 in Healdsburg, California. This tour included a five mile/kayaking/canoeing activity above the rubber dam to see the type of water environment in the area. There were some areas of algal growth in shallows, with extensive riffles, and prime fish rearing sites.

The second part of the tour took place at the Sonoma County Water Agency, Westside Water Education Center. They addressed the types of water education that they did with different age groups and at-risk youth. The impact of last season's extensive fires on the watershed and issues to address as a result of the wildfires were discussed.

Item 17

ITEMS FOR FUTURE AGENDA

Director Figuers stated that Director Palmer would not be able to attend the July 18, 2018 Board Meeting and asked if whether we would have the Director Swearing-In on July 11, 2018 as well as other Board items. Ms. Pryor stated that Director Ramirez Holmes would not be able to attend a July 11, 2018 meeting. Mr. Aladjem stated that the ceremony for Director Palmer could be pushed back to August. Ms. Pryor recommended that the Board elect a President and Vice President at the August meeting rather than the July meeting so that all seven Directors would be present. Ms. Pryor stated that there would not be a special meeting on July 11, 2018.

Item18

STAFF REPORTS

Ms. Pryor stated that the City of Pleasanton's statement that was included in the General Manager's report regarding their position on potable reuse was revised to clarify their position. "The Dublin San Ramon Services District Board voted to support potable reuse at their meeting on May 15, 2018. and the Pleasanton City Council voted to support potable reuse at their meetings on May 15, 2018. The Pleasanton City Council took action to approve its continued participation in the Regional Potable Reuse Study, with the understanding that more technical work and analysis will be gathered in the coming months under the direction of the tri-valley regional partners to enable the City and others to make a fully informed decision regarding its continued participation in the Tri-Valley Potable Reuse Initiative."

Ms. Pryor stated that Zone 7 has for a second year in a row, been awarded the Government Finance Officers Association, Certificate of Achievement. Director Stevens commented that this item should be added to the July Board Meeting Agenda.

Ms. Pryor announced that staff will host a public workshop on the Patterson Pass Water Treatment Plant Upgrades and Ozonation project on June 26, 2018. Mr. Bauer, citizen of Pleasanton stated that the Patterson Pass Open House announcement should be listed other places than just the Zone 7 website. Ms. Pryor responded that the event has been advertised in the Livermore Independent and in the Zone 7 Newsletter.

Item 19

ADJOURNMENT

Director Palmer adjourned the meeting at 8:35 p.m.