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

________________________________________________________________

REGULAR MEETING

November 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

OSBORN SOLITEI, ASSISTANT GENERAL MANAGER, FINANCE/TREASURER

CAROL MAHONEY, MANAGER, INTEGRATED WATER RESOURCES

LINDA VAN BUSKIRK, EXECUTIVE ASSISTANT

GENERAL COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 3 -

OPEN SESSION AND PLEDGE OF ALLEGIANCE

The Board came out of Closed Session at 6:52 p.m. President Greci called the meeting back into session at 6:58 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 that no reportable actions were taken.

Item 5 -

CITIZENS FORUM No comments were received.

Item 6 -

MINUTES OF THE REGULAR BOARD MEETING OF OCTOBER 18, 2017 AND MINUTES OF THE SPECIAL BOARD MEETINGS OF NOVEMBER 1, 2017

Minutes of the Regular Board Meeting of October 18, 2017

Director Palmer moved that the minutes of October 18, 2017 be accepted and approved, and Director Quigley seconded the motion. The minutes were approved by a voice vote of 7-0.

Minutes of the Special Board Meeting of November 1, 2017

Director Palmer moved that the minutes of November 1, 2017 be accepted and approved, and Director Quigley seconded the motion. The minutes were approved by a voice vote of 7-0.

Item 7 -

CONSENT CALENDAR a. Designating Zone 7's Voting Representative for ACWA Elections

b. Contract Amendment for Janitorial Services for Administration Office Building

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

Resolution No. 17-86 Designated Director Dick Quigley as Zone 7's Voting Representative

for ACWA's Elections (Item 7a)

Resolution No. 17-87 Authorized Endorsement of ACWA's Nominating Committee

Selections (Item 7a)

Resolution No. 17-88 Authorized an Amendment to the Janitorial Services Contract with

Alliance Building Services for the North Canyons Office (Item 7b)

Item 8 -

STAFFING UPDATE

Employee of the Month Recognition

Ms. Duerig announced that Wes Mercado, Junior Engineer in the Integrated Planning Section was the September Employee of the Month and was present in the audience. Mr. Mercado joined Zone 7 in October 2016 as a Junior Engineer and was recently promoted to Assistant Engineer. He was

recognized for the important role he has played in a number of key planning projects such as the Tri-Valley Joint Feasibility Evaluation of Potable Reuse, the Lake Del Valle Storage Expansion Study, and the 2017 CIP Update. Mr. Mercado was acknowledged for his receptiveness to accepting new assignments and his great persistence and attention to detail, especially with regard to the complex Water Supply Risk Model. He has been a great team player, pitching in where and when needed.

The Board applauded Mr. Mercado for his accomplishments.

Item 9 -

TEMPORARY ADJOURNMENT/CONTINUANCE OF ZONE 7 WATER AGENCY MEETING

The Zone 7 Water Agency meeting was temporarily adjourned at 7:03 p.m.

Items 10 - 15

[See "Livermore Valley Water Financing Authority, Minutes of the Authority Board Members, Special Meeting, November 15, 2017"]

Item 10 -

CALL LIVERMORE VALLEY WATER FINANCING AUTHORITY SPECIAL MEETING TO ORDER President Greci called the meeting of the Livermore Valley Water Financing Authority into session at 7:03 p.m.

Item 11 -

ROLL CALL OF JPA BOARD Present: Authority Board Members Figuers, Greci, McGrail, Palmer, Quigley, Ramirez Holmes, Stevens.

Item 12 -

CITIZENS FORUM No comments were received.

Item 13 -

CONSIDERATION OF A RESOLUTION OF THE LIVERMORE VALLEY WATER FINANCING AUTHORITY ADOPTING THE BY-LAWS OF THE AUTHORITY Adoption of By-Laws for the Authority; Confirming the President, Vice President, Secretary, Treasurer and Executive Director, Respectively, of the Authority; Establishing the Dates, Time and Place of Regular Meetings of the Authority; and Adopting a Conflict of Interest Code

Mr. Solitei presented the staff report on adoption of bylaws for the Livermore Valley Water Financing Authority ("JPA"). He explained that the Board adopted Resolution 17-85 at the October 18, 2017 board meeting which authorized the formation of a Joint Powers Authority (JPA) with California Statewide Communities Development Authority. The resulting JPA is now referred to as the Livermore Valley Water Financing Authority to issue JPA revenue bonds for the ozone projects.

Staff recommended adopting the by-laws of the Authority, confirming the officers of the Authority, establishing a regular meeting schedule of the Authority and adopting a conflict of interest code similar to Zone 7 Water Agency's.

In response to questions from Directors Ramirez Holmes and Stevens, Mr. Solitei confirmed that if the Board approves the resolution, the employees and officers of the Authority will be the same as those on the Board of Directors of the Zone 7 Water Agency. Board members and Staff shall serve without compensation by the Authority.

President Greci asked for public comment.

Linda Kelly addressed the board. She stated that she was in attendance at the September 21, 2017 Finance Committee meeting where this item was discussed. She stated she understands that there is no compensation for the officers of the Authority, but inquired about the payment of a $10,000 fee to the other agency and if that has been made public. She also asked what the length of time is for the JPA.

Mr. Solitei explained that there will be a one-time fee of $10,000 paid to the California Special Community Development Authority at the formation of the JPA. It has not been paid yet. Director Ramirez Holmes clarified that the information about fees and the decisions to be made were outlined in the staff reports and discussed at the Finance Committee meeting and again at the October 18, 2017 regular board meeting. The Agency is awaiting word on whether or not a State Revolving Fund loan will be granted.

Director Stevens moved to approve Item 13 and Director Palmer seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. LVWFA-17-1001 Adopted the By-Laws of the Authority; Confirmed the President,

Vice President, Secretary, Treasurer and Executive Directors,

respectively, of the Authority; Established the dates, time and

place of regular meetings of the Authority; and adopted a Conflict

of Interest Code. (Item 13)

Item 14 -

OTHER MATTERS

Director Ramirez Holmes asked for an update on the State Revolving Plan. Staff explained that the Agency has been told that a biological assessment of the Del Valle Water Treatment Plant facility, where the ozone will be installed, will be required and that process is estimated to take five to nine months for approval. More information should be available for discussion at the upcoming Finance Committee meeting in December regarding potential impacts to the project and whether pursuing a loan from the State Revolving Fund or obtaining bonds should be pursued.

Item 15 -

ADJOURNMENT OF LIVERMORE VALLEY WATER FINANCING AUTHORITY SPECIAL MEETING

The Livermore Valley Water Financing Authority meeting was adjourned at 7:13 p.m.

Item 16 -

CALL ZONE 7 WATER AGENCY MEETING TO ORDER

v President Greci called the meeting of the Zone 7 Water Agency back into session at 7:14 p.m.

Item 17 -

COMMITTEES: None.

Item 18 -

REPORTS - DIRECTORS

a. Verbal comments by President

b. Verbal reports

President Greci reported that he ran into staff at a recent celebration of Barry Ivy's retirement. He commended Mr. Ivy, an amazing gentleman who is liked by all at the treatment plants and who will be missed. Ms. Duerig added that a recommendation to honor him by Board resolution will be presented at the next board meeting.

Director Figuers reported that he attended a symposium on November 9th hosted by the Association of California Water Agencies (ACWA) entitled "Can We Really Predict the Weather? The Latest in Forecasting." He stated this was one of the most interesting symposiums he has attended in decades. He shared a set of seven diagrams for discussion. The symposium highlighted California's five-year drought which came to an abrupt end with the second-wettest water year on record and asked the question, "Could we have forecasted that this would happen?" Little progress has been made on our ability to accurately forecast wet or dry conditions more than two weeks out since the U.S. launched its first weather satellite in 1960. Speakers at the symposium included DWR Director Grant Davis and ACWA Deputy Executive Director for External Affairs Jennifer Persike.

Director Ramirez Holmes reported that on October 24th Carol Mahoney and Andy Chamberlain took her on a fascinating field trip to get an update on the flood control repairs in progress at the Foothill Road and Verona property sites in Pleasanton. She expressed her gratitude to Ms. Mahoney and Mr. Chamberlain for showing her the sites and praised staff for the work they've done to repair the damage caused by the heavy storms in 2017. Directors Ramirez Holmes and Palmer suggested that staff let the public know about this year's work. Staff replied that these are often captured and published in the Annual Report.

Item 19 -

ITEMS FOR FUTURE AGENDA

None.

Item 20 -

STAFF REPORTS

a. General Manager's Report

b. Legislative Update

c. Outreach Activities

d. Water Inventory and Water Budget Update

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

f. Capital Projects Status Report

g. Verbal reports

Ms. Duerig invited any questions on the staff reports. She confirmed with the board that a quorum will be present for the next board meeting on December 20, 2017.

Mr. Solitei announced that the Agency was awarded its second District Transparency Certificate of Excellence from the California Special Districts Association for the period August 2017-August 2019.

President Greci announced that he received a communication from Assemblywoman Catharine Baker congratulating and commending Zone 7 on receiving the California Special Districts Association's District Transparency Certificate of Excellence.

Item 21 -

ADJOURNMENT

The meeting was adjourned at 7:48 p.m.