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

________________________________________________________________

REGULAR MEETING

June 21, 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

OSBORN SOLITEI, ASSISTANT GENERAL MANAGER, FINANCE/TREASURER

CAROL MAHONEY, MANAGER, INTEGRATED WATER RESOURCES

JOE SETO, PRINCIPAL ENGINEER, FLOOD PROTECTION

JEFF TANG, ASSOCIATE ENGINEER, FLOOD PROTECTION

ANDREW CHAMBERLAIN, ASSISTANT ENGINEER, FLOOD PROTECTION

LINDA VAN BUSKIRK, BOARD SECRETARY

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 3 -

CALL TO ORDER/PLEDGE OF ALLEGIANCE

The Board came out of Closed Session at 6:58 p.m. At 7:00 p.m., President Quigley called the meeting back into session and led the Salute to the Flag.

Item 4 -

REPORT OUT OF CLOSED SESSION

President Quigley asked David Aladjem, Counsel, to report out of Closed Session. Mr. Aladjem stated that no reportable actions had been taken in Closed Session.

Item 5 -

CITIZENS FORUM

Werner Schlapfer, a member of the hiking group "The Hill Hikers" addressed the Board regarding hiking the trail on Patterson Ranch. Mr. Schlapfer said that Zone 7's tenant Paul Banke is willing to give his permission to the hiking group, provided that it take place after July 4th due to cattle moving and that the group obtain permission from Zone 7 Staff. Mr. Schlapfer asked the Board to direct staff to send an email to Mr. Banke approving the hike and further asked that the General Manager copy him on the email. If approved, the group would like to hike the trail on July 7th. Both Director Figuers and President Quigley expressed an interest in participating on the hike should it happen.

Greg Davis, a long-term Livermore resident, also expressed interest in the July 7th hike on Patterson Ranch. He stated that the hiking group is very gentle on the environment. He urged the Board to move on the request to grant permission to the hiking group. President Quigley thanked the public for speaking about hiking but the Board could not take action on an item not on the agenda.

Amy Roth, an employee of E&B Natural Resources, addressed the Board regarding the company's operation of a small oil production facility on less than two acres of rural area on Patterson Pass Road, Livermore. She stated that the oil field is fully permitted by Alameda County and a number of state and federal government agencies. No fracking is done on the site, and fracking is prohibited in the county. She thanked the Board for the opportunity to introduce E&B Natural Resources.

Item 6 -

MINUTES OF THE REGULAR BOARD MEETING OF MAY 17, 2017

Director Stevens moved that the minutes of May 17, 2017 be accepted and approved with the corrections submitted by Director Ramirez Holmes, and Director Palmer seconded the motion. The minutes were approved by a voice vote of 7-0.

Item 7 -

CONSENT CALENDER

a. Resolutions of Support for Directors Palmer and Quigley to Serve on the ACWA Region 5 Board

b. Quitclaim Property Rights to the Owner(s) of 1716 Peary Way Livermore

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

Resolution No. 17-45 Resolution of Support for Director Quigley's Candidacy for ACWA's

Region 5 Board. (Item 7a)

Resolution No. 17-46 Resolution of Support for Director Palmer's Candidacy for ACWA's

Region 5 Board. (Item 7a)

Resolution No. 17-47 Authorized the General Manager to execute a Quitclaim Deed

for a portion of APN 97-137-2-9, 1716 Peary Way, Livermore (Item 7b)

Item 8 -

STAFFING UPDATE

a. Employee of the Month Recognition

General Manager, Jill Duerig, announced that John Brixie, Water Plant Operator III in the Operations section was nominated as the April 2017 Employee of the Month. John was recognized for his valuable contributions and passion for spreading the word about careers in the water industry during multiple career and job fair events and for his professional experience which he shares with others enthusiastically. The Board congratulated and applauded John Brixie in absentia.

Item 9 --

SUSTAINABLE GROUNDWATER MANAGEMENT ORDINANCE ADOPTION

President Quigley stated that the agency has had two prior public hearings on the matter. He introduced Carol Mahoney, Manager of Integrated Water Resources, who highlighted additional outreach efforts that took place since the last board meeting. An e-newsletter was distributed on May 23 in addition to advertisements that were placed in two local newspapers during the week of May 22nd. San Luis Obispo and Napa County are good examples of sustainable groundwater ordinances that are already out there. Several other counties have moved forward in creating these so that they can be protective of groundwater from unlawful activities or exports. It just makes it very clear what the rules are. Zone 7 used some of those examples when drafting this.

Ms. Duerig mentioned that an email was received from Chris Chandler, Executive Director of the Livermore Valley Winegrowers Association, which was distributed to the Board and copies were made available for the public. President Quigley asked if there were any questions from the Board.

Director McGrail expressed disappointment with the amount of community outreach Staff accomplished to get the word out to the Livermore Valley Winegrowers Association and other agricultural groups. Although he stated he is for protecting the groundwater supply, he once again expressed concern about the way the ordinance is written to provide an unfettered responsibility for very few people which is not something that a government agency should have the right to do. In response to Director Figuers question of how he would modify the responsibility for enforcement, Director McGrail responded that it should come to the full Board, not to one person that oversees it all.

Director Palmer expressed her support of the ordinance. She urged her fellow board members to look at this from a technical and data-driven perspective instead of a political one.

Director Stevens expressed support for the ordinance as written. He stated the policy had been debated a couple years ago when the well ordinance was passed.

Director Ramirez Holmes expressed dissatisfaction with the amount of public outreach done regarding the ordinance. She further stated that the most transparent process for a person to be able to petition the government that is making a decision for them is before a full board. She added that she thinks the ordinance should be properly sunshined.

Director Figuers addressed the committee vs. full board discussion by reminding the Board that having a hearing before a board committee is talking to the government by definition; it is a public meeting. Additionally, any committee has the ability to refer matters to the board, and in extreme cases the board could sit in as a committee of the whole if they wish.

David Aladjem clarified that the decision would be by that committee and the committee would use its discretion about what would be the appropriate action under those circumstances.

President Quigley expressed his support of the ordinance. He said that Zone 7 has been working on this for years as a result of the 2014 state law on sustainable groundwater management. Zone 7 has been recognized as an exemplary groundwater manager in the state act. This ordinance is a necessary step that must be taken.

Director Greci expressed concern that if the ordinance was put off any longer a bigger issue could arise which is the Agency will be told what to do on this by the state and will no longer be considered the exemplary agency as stated by President Quigley. He recognized Staff for the good job they did on the outreach effort. He wished someone were at the board meeting from the Winegrowers Association or other agricultural entity other than Director McGrail. He urged the Board to stay on path and get this passed before the state intercedes.

President Quigley opened the public hearing. There were no public comments so the public hearing was closed.

Director Stevens moved to adopt the ordinance and Director Palmer seconded the motion. The ordinance was adopted by a roll call vote of 5-2, with Directors McGrail and Ramirez Holmes voting no.

Ordinance No. 2017-01 Adopted the Sustainable Groundwater Management Ordinance

(Item 9)

Item 10 --

REIMBURSEMENT AGREEMENT FOR CAMP PARKS DETENTION BASIN

Director Stevens recused himself and left the meeting at 7:38 p.m.

Ms. Duerig introduced Jeff Tang, Associate Civil Engineer, Flood Protection, who gave a presentation on the Camp Parks Detention Basin Reimbursement Agreement. The presentation included a background on the Dublin Crossing Development and the Camp Parks Detention Basin, the environmental mitigation requirements, regulatory framework, and required right-of-way agreements.

Staff recommended the Board authorize the General Manager to:

. Enter into a Perpetual Endowment Agreement as approved by the Board of Directors on September 21, 2016 under Resolution 16-160

. Execute Right-of-Way agreements as part of Zone 7's responsibilities as the Chabot Canal and Canal 2 (Line G-2) Land Manager for the Conservation Easement & Operator of the Camp Parks Detention Basin

. Negotiate and execute the Developer Reimbursement Agreement & Guarantee

Director Greci expressed his support for the item and stated it will be a good business deal, especially given developer fees. He expressed concern over the soil sampling that was done to ensure that any contamination would not be covered up by housing and then permeate down into our basin. Mr. Tang responded that the developers have the responsibility of meeting the requirements and addressing any issues that arise from whatever they may discover there.

President Quigley expressed excitement for this project, especially the trails and recreational elements. Regarding the man-made catch basin along with the realignment, he urged staff to work with all the proper agencies in order to be able to remove sediment once it becomes ours. He also suggested the use of USGS flow gauges. Mr. Tang responded that as part of the negotiations for creating this detention basin, Zone 7 has negotiated with the regulatory agencies to allow us to go in there every year to remove whatever sediment is necessary to maintain the facility.

President Quigley asked if there were any public comments. No comments were received.

Director Figuers moved to approve Item 10 and Director Palmer seconded the motion. The item was passed by a roll call vote of 6-0, with Director Stevens absent.

Resolution No. 17-48 Authorized the General Manager to execute documents related to

Camp Parks development (Item 10)

Director Stevens returned to the meeting at 8:10 p.m.

Item 11 --

AWARD OF OPERATED EQUIPMENT SUPPLY CONTRACT FOR MAINTENANCE AND EMERGENCY WORK FOR FLOOD CONTROL FACILITIES, PROJECT NO. 261-17

Ms. Duerig introduced Andy Chamberlain, Assistant Engineer, Flood Protection who gave a detailed presentation on the Flood Control Maintenance Program. The presentation highlighted the Agency's 37 miles of channels and appurtenances in Eastern Alameda County and provided an overview of the maintenance activities such as bank and road repairs and sediment removal that Staff carefully manages routinely for efficient utilization in these vital areas. He stressed that Staff requires significant labor and operated equipment resources to support routine maintenance activities to maintain and improve facility readiness for rainy seasons. Project 261-17 represents the normal, routine work undertaken by Zone 7 to address maintenance and additional damage to flood control facilities from storm events. In order to complete routine construction activities during the same time frame as the emergency repairs are made, Staff recommends the award of a contract to the lowest responsive and responsible bidder, Fanfa, Inc., for flood control maintenance and emergency work.

Directors Ramirez Holmes and McGrail thanked Mr. Chamberlain for a very well done and thorough report. A question was asked about how the Agency gets this information out to the public as a routine matter. Staff responded that there are two ways, one of which is the Agency's Annual Report which includes a summary of flood activities and is distributed by the end of the fiscal year and is currently in print. The second is by presenting a detailed annual report focused on flood activities to the Board as a staff report and is posted on the Zone 7 website.

President Quigley asked if there was any public comment. There were no further comments.

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

Resolution No. 17-49 Approved a contract with Fanfa, Inc. (Item 11)

Item 12 --

PROFESSIONAL SERVICES FOR PLANNING ENVIRONMENTAL PERMITTING, AND ENGINEERING DESIGN OF EMERGENCY FLOOD CONTROL REPAIRS

Director Figuers left the meeting at 8:20 p.m. He returned to the meeting at 8:29 p.m.

Ms. Duerig introduced Joe Seto, Principal Engineer, Flood Protection, who gave a presentation on Professional Services for Planning, Environmental Permitting, and Engineering Design of Emergency Flood Control Repairs. The presentation highlighted the significant damage to Zone 7's flood control facilities as a result of the storms of January and February 2017. In March 2017 the Board declared a Local State of Flood Emergency due to these storms. As of the end of May 2017, 208 damaged sites have been identified on channels owned by Zone 7 with an estimated cost to repair these bank slides of $44 million. Due to regulatory permitting, the schedule to repair these bank slides covers at least two years. Staff recommends that a qualified vendor list be approved for award of funding not-to-exceed a total of $7.8 million for FY 17/18 and FY 18/19 for professional services in support of the emergency repairs. Staff further recommends that the General Manager be authorized to negotiate and execute one or more contracts with consultants on the list on an as-needed basis during the entirety of the Emergency Flood Control Repair Program to expedite planning, permitting, design, construction and post construction services. These services may be partially reimbursable through FEMA and Cal OES grant funding.

Director Ramirez Holmes expressed concern over authorizing $8M and the domino effect it will have on the budget both in the next item and then for the fall. She stated the Agency doesn't have the staff or enough consultants that we can hire to get all of those projects finished, nor do we have the money for them, so for the design to sit on a shelf doesn't seem to be a good use of our money now, when the Agency hasn't yet received a formal list of qualifying sites from USACE. Although she understands the need to loosen up some money, she is not comfortable with a blank check approach.

Staff explained the Agency is taking a proactive approach. Once the formal list of qualifying sites is received from USACE sometime in July, the agency will need to complete state and local environmental requirements as well as any federal/state long-term monitoring and reporting and construction management activities. The USACE may approve a number of sites, but others may need to switch over to the FEMA program. The FEMA program requires Zone 7 to do the planning, the permitting, CEQA, design, bidding, and construction, and then reimburse. Staff is bringing this item to the Board in anticipation of getting the July letter from USACE and to be ready to execute contracts with one or more consultants to get that process going in order to stand a chance to do any repairs this summer.

David Aladjem, Counsel, explained that the way in which FEMA and Cal OES work is unlike the USACE. What the USACE does is do the design and construction, funding 80% with Zone 7 funding 20% of the project costs. FEMA and OES operate on a reimbursable process, so you spend the money and then they reimburse you afterwards. You actually have to front the money, then you have to show them receipts. That is why the Agency needs the money upfront.

Ms. Duerig added that the Agency will leverage as much as it can by obtaining grants, but the designs will have to be done regardless. This is based on the Agency's best knowledge at this point in time. About 20% of the $44M estimate of total cost is likely in design. Staff recommends the Board authorize that design as soon as possible to allow Zone 7 to start some of the environmental impact analysis that will be required as part of obtaining those permits. Until this process gets going, Zone 7 can't actually go out and fix anything.

Director Palmer agreed that this is a question of expediency. It's best to keep a bank of experts ready to go and the information ready to go so that when the money comes in and the approval to go forward is received, we can move forward in a timely fashion. Otherwise, we're in December and then it's too late.

Director Figuers asked how long does it typically take to get a CEQA approval done for non-emergency projects? He expressed concern that money for post construction mitigation, monitoring and reporting of repairs included. Staff responded that it can take up to four to six months for a mitigated negative declaration.

Director Stevens expressed his support of the item.

President Quigley expressed his support for the item. He then asked if there were any comments from the public.

David Raun, a resident on Foothill Road in Pleasanton, addressed the Board. He stated this is his fourth board meeting in a row. He reminded the Board that during the first meeting he attended in March, the Board unanimously supported taking care of the emergency issues in the Arroyo de la Laguna, Verona Reach due to extensive damage from the frequency and intensity of this winter's storms. He stated that during a presentation at the March meeting, the timeline discussed for completion of the emergency repairs was two to four months. At this time, three months later, he received an email today saying that funding may be obtained sometime in July. The days are beginning to get shorter and the rain may be starting here soon. He asked the Board if he will have a home or not. He asked if his property is part of the 208 mentioned in this item.

Ms. Mahoney clarified that the bank behind Mr. Raun's home is not one of the 208 bank slides discussed here. That is a separate project that the Board has already discussed and Staff are moving forward already.

Director Palmer moved to approve Item 11 and Director Figuers seconded the motion. The item was passed by a roll call vote of 6-1, with Director Ramirez Holmes voting no.

Resolution No. 17-50 Authorized the General Manager to negotiate and execute one or

more contracts with eligible consultants for a total not-to-exceed

amount of $7,800,000. (Item 12)

Item 13 --

PROPOSED MID-CYCLE BUDGET AMENDMENT FOR FY 2017-18

Director McGrail left the meeting at 8:51 p.m. Director Palmer left the meeting at 9:02 p.m. She returned to the meeting at 9:06 p.m.

Osborn Solitei gave a brief presentation on the Mid-Cycle Budget Adjustment. The Board had adopted a two-year budget for FY 16/17 and 17/18. The two-year budget process includes a mid-cycle review for the second budget year to confirm the budget is in-line with Board priorities, economic conditions, capital project schedules, projected revenues/expenses from the first budget year and reserve policy requirements. The proposed amendment reflects impacts of water conservation, the Connection Fee Study, debt financing for ozone projects, Flood Protection Emergency Repair Program, and the purchase of the North Canyons administrative building (which resulted in savings of $7.1M).

Staff recommended the Board adopt the attached resolution approving the proposed budget amendments for FY 2017-18.

Director Stevens asked for a comparison of the final total reserve amounts between this year and last. Mr. Solitei responded last year $168M and this year $187M. That amount comes mostly from connection fees. And then the appropriation of expenditures, the previous budget was $147M and this one is $138M. In response to Director Stevens' question asking if we are better off at this point, Mr. Solitei responded that it's not that we are better off, but that some items have been deferred and will not be completed during this fiscal year.

Director Ramirez Holmes asked if the lower sales of water is also reflected in a related savings in chemical costs and utilities. Staff responded that it is not a direct relationship; the amount of water that we buy in any given year isn't related to how much we're selling. During a high allocation year, like this one, we buy as much as we can to put into storage in either our local groundwater basin or Cawelo or Semitropic, or even as carry over, and so our costs go up. Chemicals and utilities are related more to quality of source water, so during the drought our chemical costs per gallon of water treated almost doubled because the water quality was so poor. Our utilities vary based on the source of supply so if we're pumping more groundwater and less surface water, utilities can skyrocket because it costs more to pump the groundwater and to run it through the demineralization plant.

Director Figuers asked if the agency has actually ever used water from the groundwater storage banks. Staff responded that yes, during 2014 and 2015 the agency took back almost every drop it could. That is how this valley survived in 2014 with a 5% allocation that wasn't available until after Labor Day.

President Quigley asked if there were any other board questions or comments from the public. There were no further questions.

Director Stevens moved to approve Item 13 and Director Figuers seconded the motion. The item was passed by a roll call vote of 6-0, with Director McGrail absent.

Resolution No. 17-51 Adopted the proposed budget amendments for FY 2017-18 (Item 13)

Item 14 --

DEBT POLICY

Osborn Solitei gave a brief verbal presentation on the Debt Policy. He stated that this item was presented to the Finance Committee on June 12, 2017 for its review and the Committee unanimously recommended that this policy be brought forward to the full board for adoption. The Finance Committee also recommended the following items be discussed with the full board:

Policy Review - Should the debt policy be reviewed in the next 4-5 years by the Board, or remain as stated in Section 20 of the policy?

Should the Board review and approve the "Official Statement" of a bond issuance as part of the continuous disclosure requirement?

Should the Disclosure Coordinator be designated as the General Manager or Treasurer?

Director Stevens reported that the Finance Committee was in favor of approving the Debt Policy once the Board reviews and discusses the three bullet points that were brought up during the committee meeting. As it is drafted in the Debt Policy, the policy review would be regularly reviewed and updated by the Treasurer/Assistant General Manager - Finance, and staff would then present any recommended revisions to the Board for adoption. The committee discussed a review every 4-5 years, and an accounting representative from DSRSD had recommended every 5-10 years. Some board members thought it should be less than that. As drafted, a review by the Board would be requested whenever there is a change in the law. Mr. Solitei confirmed that he will be responsible for regularly reviewing and updating the policy and will present any recommended revisions to the Board for adoption. Anticipated changes to the policy will be based on federal, state or SEC regulations.

President Quigley was also in attendance at the Finance Committee meeting on June 12th and agreed with the statement by Director Stevens. He added that a review of financials is captured in the Agency's Annual Report.

Director Ramirez Holmes suggested a policy be created to set a review time for the agency's implemented policies as a matter of course, similar to the process that DSRSD utilizes. Director Figuers agreed with the concept, but suggested that it should be submitted as a separate motion before the Board because it is so general, and not specific to the Debt Policy.

Director Ramirez Holmes commented that a key component is missing from the policy which is ensuring that when the Agency issues debt that the related "Official Statement" is reviewed in a public hearing before the Board. She stated that many agencies have a debt policy and a disclosure policy, so there is a consistent form of reporting as an informational agenda item when there is an Official Statement and it comes to the board as a way to let the public know what has been issued. Zone 7 is combining the two, so we will have a debt policy that includes all appropriate disclosures.

Mr. Solitei confirmed that before any debt is issued, it will go before the Board, so the Board will have to approve a debt issuance and that will be part of the public discussion. He clarified that the Official Statement is drafted by Bond Counsel and much of the Agency's Comprehensive Annual Financial Statement is attached to it. He has not seen that document at other agencies come to be debated, and he does not recommend that because the Agency at that point would have already authorized the debt issuance.

Director Figuers added that this is very similar to what has historically been done by the Zone when issuing bonds. Mr. Solitei continued explaining that when you go through the market and issue a bond, that information captures the Comprehensive Annual Financial Report which is presented to the Board. Any debt will be posted on the Zone 7 website. This financial disclosure is one of the continuous disclosures that the SEC requests. It includes the maturity date, the interest you pay, and how much you issue.

President Quigley asked for any further Board questions or public comment on the item. No further comments were discussed.

Director Palmer moved to approve Item 14 and Director Stevens seconded the motion. The item was passed by a roll call vote of 6-0, with Director McGrail absent.

Resolution No. 17-52 Adopted the Debt Policy (Item 14)

Item 15 --

PURCHASING POLICY

Mr. Solitei presented the staff report on the Purchasing Policy. He explained that this is another boilerplate policy. The policy provides uniform procedures for acquiring goods and services, capital improvement or construction materials, health and safety needs, equipment, maintenance and fleet purchases, and professional services and administration for the Agency. The Finance Committee met on June 12, 2017 to review the policy and recommended unanimously that this item be brought forward to the full board for adoption. The Committee also recommended that the full board discuss increasing the non-competitive purchasing limit from the current $3,000 as stated in the policy to be between $5,000 and $10,000. Mr. Solitei asked the Board if there were any questions.

Director Stevens shared that during the Finance Committee meeting, Carol Atwood, Administrative Services Manager with the Dublin San Ramon Services District (DSRSD) suggested increasing the purchasing limit to $10,000 because the higher you make it, the less paperwork you create. The Board discussed the pros and cons of increasing the limit to $10,000. Some were in favor of a number somewhere in the middle at $5,000 and others were for going up as high as $15,000. It was suggested that all expenditures based upon this authority be listed in detail and presented in the Board package so that the Board can see how the money is being spent, or in lieu of a detailed listing have any credit cards audited annually. Mr. Solitei stated that every quarter a report is provided that shows all our purchases. Additionally, he confirmed that an auditing of credit cards happens every year.

In response to Director Ramirez Holmes' question about what happens in the case of a bid protest, Staff explained that the bid protest process is outlined in the bid packages and specifications themselves. The Agency usually does not see protests regarding the purchase of items.

Board consensus was in favor of increasing the purchasing limit to $10,000.

Director Ramirez Holmes moved to approve the Purchasing Policy with the changes on Page 7 at (t) Competitive Pricing Requirements as follows:

(t) Competitive Pricing Requirements:

a) Purchases less than $3,000 - increased to $10,000; and

b) Purchases for Commodities from $3,001 to $100,000 - increased to $10,001

Director Palmer seconded the motion. The item was passed by a roll call vote of 6-0 with Director McGrail absent.

Resolution No. 17-53 Adopted the Purchasing Policy (Item 15)

Item 16 --

COMMITTEES

a. Tri-Valley Water Liaison Committee Meeting, April 26, 2017 - notes pending

b. Administrative Committee Meeting, May 22, 2017 - notes

c. Finance Committee Meeting, June 12, 2017 - notes

No comments were received on the notes from the Administrative and Finance Committee meetings.

Item 17 --

REPORTS-DIRECTORS

a. Verbal comments by President

b. Written report by Director Quigley

c. Verbal reports

Director Palmer distributed a written report which highlighted her attendance at the May ACWA Conference. She pointed out that Zone 7 is currently doing what was suggested at the ACWA conference by taking advantage of as many of the Army Corps of Engineers, FEMA and EPA grants as soon as we possibly can because we don't know what federal grants will be available next year.

President Quigley thanked Director Palmer for her written and verbal reports. He announced that many of the ACWA speeches and programs are online now on the ACWA website. His written report discussed the East Bay Regional Park District (EBRPD's) ribbon cutting ceremony at Shadow Cliffs recognizing its stunning 1.2 megawatt new facility that will generate 96 percent of its electrical power for all of its parks in two counties. He credited being on ACWA's Energy Committee for many years as the inspiration for bringing a solar proposal to Zone 7 which resulted in the current solar array at the Del Valle Water Treatment Plant which continues to save approximately $80,000 per year.

Item 18 --

ITEMS FOR FUTURE AGENDA - DIRECTORS

Director Ramirez Holmes suggested that a policy on 5-year policy review be brought back to the Board unless it is specified within the policy to be reviewed sooner. President Quigley stated that Board policies are available for Directors and the public to view on Zone 7's website.

Item 19 --

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

c. General Manager's Report

d. Legislative Update

e. Outreach Activities

f. Water Inventory and Demand Update

g. Update Related to the California WaterFix (former Bay Delta Conservation Plan)

h. Verbal reports

Ms. Duerig stated that the Department of Water Resources (DWR) announced that, although it is early in the season, they are already finding cyanotoxins in San Luis Reservoir. Zone 7 hasn't heard about any detections in Lake Del Valle yet. East Bay Regional Park District monitors it closely because they have to post alerts (such as no pet swimming, don't let your dog drink the water, that kind of notice).

Director Palmer inquired if the Agency has heard any of those algae alerts yet? Ms. Duerig responded at this time only for San Luis Reservoir, not for Lake Del Valle, but we did get it in both last year. When it does arrive at Lake Del Valle, we will begin monitoring to make sure it doesn't reach our plants, and if it does, that we have something in place to be able to manage it. Unfortunately, this is one of the situations when, while chlorine is a tool, the best tool is ozone. Plans are in place but ozone completion is still a few years out. In response to Director Palmer's question asking if ozone will take care of the disgusting flavors and odors in our water, Ms. Duerig responded that it will certainly help. It is a much better tool than either chlorine or Powdered Activated Carbon (PAC). However, nothing is 100 percent effective if you get a huge bloom. Zone 7 is feeding PAC at the highest levels that our equipment will allow to help remedy the current earthy/musty taste and odors that we are getting in our service area. Our sister agencies that are receiving the same water, and both of whom already have ozone, have not had those kinds of complaints.

President Quigley thanked Staff for Items 19(d) through (g). In regard to Item 19(f) Water Inventory and Update, he asked if Staff would provide statistics on how much water Zone 7 lost due to storage inadequacies during the last stormy season. In regard to Item 19(g) Update Related to the California WaterFix, President Quigley stated he believes that we are going to see more about the California WaterFix over the next few months.

Item 20 -

ADJOURNMENT

The meeting was adjourned at 9:47 p.m.

Board Secretary