The Board entered Closed Session at 6:00 p.m., Director Benson arrived at 6:03 p.m., Director Figuers arrived at 6:37 p.m., and the Board adjourned at 7:04 p.m.

Item 3 -

3. Open Session and Report Out of Closed Session

President Gambs reported that the Board met in Closed Session prior to the meeting to discuss tentative Memoranda of Understanding (MOUs) between Zone 7 and its employee bargaining units. The Board subsequently took action in Open Session to approve each agreement individually.

The first agreement approved was the MOU between Zone 7 and the Alameda County Management Employees' Association (ACMEA), effective June 22, 2025, through June 17, 2028. The Board adopted a resolution granting salary increases for ACMEA-represented classifications as follows: 6% effective June 22, 2025; 5% effective June 21, 2026; and 4% effective June 20, 2027. The resolution also added Section 9.5, Longevity Pay, to Appendix A Footnotes of the salary schedule. Director Palmer moved to approve the resolution, seconded by Director Green. The motion passed unanimously, 7-0.

The Board next approved the MOU between Zone 7 and the Building Trades Council of Alameda County, effective June 22, 2025, through June 17, 2028. The resolution included salary increases of 6% effective June 22, 2025; 5% effective June 21, 2026; and 4% effective June 20, 2027. It also amended Section 2.5, Boot Allowance, and added Section 9.5, Longevity Pay, to Appendix A Footnotes. Director Narum moved adoption of the resolution, seconded by Director Benson. The motion carried unanimously, 7-0.

The MOU with the International Federation of Professional and Technical Engineers, Local 21, was then approved, covering the period from June 22, 2025, through June 17, 2028. The Board adopted a resolution granting salary increases of 6% effective June 22, 2025; 5% effective June 21, 2026; and 4% effective June 20, 2027. The resolution also added Section 9.5, Longevity Pay, to Appendix A Footnotes. Director Palmer moved approval, seconded by Director Narum. The motion passed unanimously, 7-0.

The Board also approved the MOU between Zone 7 and the Northern California Public Sector Region, Local 1021 of the Service Employees International Union (SEIU), CTW, effective June 22, 2025, through June 17, 2028. The resolution included salary increases of 6% effective June 22, 2025; 5% effective June 21, 2026; and 4% effective June 20, 2027. It further amended Section 1.8, Water Quality Laboratory Technician, and added Section 9.5, Longevity Pay (effective January 4, 2026) to Appendix A Footnotes. Director Green moved approval, seconded by Director Narum. The motion carried unanimously, 7-0.

Lastly, the Board approved salary adjustments for unrepresented classifications through a resolution effective June 22, 2025, through June 17, 2028. The resolution provided for salary increases of 6% effective June 22, 2025; 5% effective June 21, 2026; and 4% effective June 20, 2027, and added Section 9.5, Longevity Pay, to Appendix A Footnotes. Director Narum moved approval, seconded by Director Benson. The motion passed unanimously, 7-0.

Item 4 -

4. Pledge of Allegiance

Director Benson led the Pledge of Allegiance.

Item 5 -

5. Roll Call of Directors

All Board members were present.

Item 6 -

6. Public Comment on Non-Agenda Items

No public comment was received.

Item 7 -

7. Minutes

Director Palmer moved to approve the minutes of the regular Board meeting held on May 21, 2025. The motion was seconded by Director Green and approved by a voice vote of 7-0.

Item 8 -

8. Consent Calendar

Director Narum commented that with approval of the consent calendar, the Board would be creating a new reserve under the General Fund, known as Fund 100 - the Water Reliability Reserve. She noted that this reserve will play an important role in the proposed mid-cycle budget under Item 9, referencing a strong fiscal year. The fund is intended to provide flexibility in addressing emerging water supply needs, drought response, and other opportunities. Director Narum emphasized that the reserve aligns with the Agency's Strategic Plan to enhance water reliability and commended the lack of minimum or maximum thresholds, allowing for adaptable use as needed.

Director Palmer moved to approve Consent Calendar Items 8a through 8i. The motion was seconded by Director Benson and approved by a roll call vote of 7-0.

Item 9 -

9. Proposed Mid-Cycle Operating and Capital Budget Amendment for FY 2025-26 >

JaVia Green, Financial Analyst, presented the proposed mid-cycle budget amendment for fiscal year 2025-26, explaining that the two-year budget was originally adopted in June 2024 and is reviewed annually to ensure alignment with Board priorities, capital project schedules, current revenue and expenses, and reserve policies. Budget priorities include maintaining a high-quality workforce (Strategic Plan Goal A), addressing emerging contaminants and regulatory compliance, advancing capital improvement projects such as the Mocho PFAS Project, and completing repairs related to the 2022-23 winter storms.

Agency-wide revenue is projected to decrease by $2.5 million due to delayed reimbursement from federal and state grants for storm-related projects, while overall expenses are projected to decrease by $11.3 million. Operating expenses are impacted by various factors: water production costs reflect rising utility and chemical prices, but a decrease in Kern County water banking costs helps offset increases; personnel costs reflect the addition of four full-time employees and updated salary and benefit projections. Budget reductions include $400,000 for the discontinued Los Vaqueros Project, $1.65 million for the Delta Conveyance Project (no payment required in the first half of FY 2025-26), and $850,000 for the Sites Reservoir Project (no payment required in FY 2025-26).

In capital spending, an additional $3.76 million is included due to increased construction costs and prioritization of key projects. The budget also reflects a $1.1 million decrease for the Flood Management Plan, which has sufficient funding to complete its current phase. An additional $163,000 is included for flood maintenance services.

All agency reserves remain in compliance with policy. Based on a Finance Committee recommendation, a one-time $100,000 contribution to the pension trust fund is included, supported by an unallocated fund balance in Fund 100 - Water Enterprise Operations. Additionally, the newly approved Water Reliability Reserve-also under Fund 100 - Water Enterprise Operations-is funded with an estimated $8.1 million to support flexible response to drought, water supply opportunities, and rate stabilization.

During Board discussion, Director Narum thanked staff and the Finance Committee for their work and raised questions regarding sensitivity to changes in water sales, which staff confirmed are modeled with 5-10% variation. She also inquired about the $1.5 million unallocated fund balance, which staff noted may change depending on year-end balances. Other Directors inquired about the mechanics of Kern County water banking program, the impact of deferring Delta Conveyance and Sites Reservoir expenditures, and the allowable uses and transferability of the new Water Reliability Reserve. Staff clarified that funds are restricted to Fund 100 purposes unless reallocated by Board resolution and may be used for capital projects funded by water rates.

Director Narum moved to approve the proposed mid-cycle budget amendment for FY 2025-26. Director Palmer seconded the motion, which was approved by a roll call vote of 7-0.

Item 10 -

10. Vacancy Reporting Compliance: AB 2561 >

Shelisa Jackson, Human Resources Manager, presented the Agency's first annual report in compliance with California Assembly Bill 2561 (AB 2561), which was signed into law in September 2024 and became effective January 1, 2025. The bill aims to enhance transparency and accountability in public sector hiring by requiring agencies to report, at least once per fiscal year, the status of vacancies, recruitment, and retention efforts. Labor unions are entitled to make presentations during these reports and may request additional information if the vacancy rate in their bargaining unit exceeds 20%.

Ms. Jackson confirmed that none of Zone 7's bargaining units currently meet or exceed the 20% vacancy threshold. As of May 28, 2025, and accounting for hires through June 23, 2025, the vacancy rates were: ACMEA - 0%, BTC - 9.5%, Local 21 - 17.6%, SEIU - 16.9%, and Unrepresented Management - 27.8%. The unrepresented category, while exceeding 20%, is not subject to the union-related provisions of AB 2561. In total, the number of vacancies was two for BTC, three for Local 21, nine for SEIU, and five for Unrepresented Management.

Ms. Jackson also highlighted several recruitment and retention initiatives supported by the Board, including employee engagement activities, recognition programs, alternate work schedules, hybrid options, and professional development resources such as tuition reimbursement. She emphasized the Agency's internship program, noting recent success stories such as a former intern who was hired into a Junior Engineer position and another intern who first learned about Zone 7 through an elementary school outreach event.

President Gambs inquired about the legislative intent behind AB 2561, to which Ms. Jackson explained that the law is designed to make vacancy information more transparent to unions, allowing them to monitor staffing levels that may impact services or working conditions. President Gambs also asked whether unfunded positions were included in the vacancy count, and Ms. Jackson clarified that only funded but unfilled positions are counted as vacancies under AB 2561.

The Board received the report in compliance with the new law.

Item 11 -

11. Update on the Regional Groundwater Facilities Improvement Project - Phase I >

Valerie Pryor, General Manager, introduced Item 11 as an informational update on the Regional Groundwater Facilities Improvement Project - Phase I, being conducted jointly with the City of Pleasanton. She reminded the Board that the project is a feasibility study exploring the development of new wells in the Bernal Subbasin. Ms. Pryor emphasized that the collaboration could result in significant cost savings, reduced environmental and community impacts, and mutual benefits for both agencies. The feasibility study remains ongoing, and the current presentation was intended to provide a check-in on test results and project progress.

Ken Minn, Water Resources Manager, then provided a detailed overview of the project's alignment with Zone 7's Strategic Plan, especially in terms of diversifying water supply, implementing the PFAS management strategy, and improving drought resilience and operational redundancy. Mr. Minn highlighted that the project meets goals of the water supply reliability policy's key goals-ensuring water availability during peak demand and in the event of facility outages. He noted lessons learned from the 2021-2022 drought, including the need to avoid over-reliance on the Amador Subbasin, which had caused a significant drop in well efficiency.

Mr. Minn outlined the dual benefits of working with Pleasanton, including cost savings and minimized community disruption. He also stressed that shared operational responsibilities and integrated water treatment would reduce Pleasanton's regulatory and financial burdens, especially as drinking water standards evolve. The scope of the feasibility study includes exploratory drilling at three sites (Del Prado, Tennis Park, and Hansen Park), yield and water quality testing, and the eventual development of a feasibility report to inform decision-making.

Scott Lewis from Luhdorff & Scalmanini Consulting Engineers then presented findings from the field investigations and testing. Each test well underwent drilling to a depth of 800+ feet, lithologic and geophysical logging, and multi-zone water sampling for both water quality and yield assessment. Del Prado yielded good water quality with a minor exceedance of manganese in certain zones, though the composite sample was largely within limits. The estimated production capacity ranged from 1,300 to 1,900 gallons per minute. The Tennis Park demonstrated particularly strong performance with yields between 3,400 and 5,100 gallons per minute and overall high water quality. Hansen Park also showed promising results, with estimated yields similar to Tennis Park despite slightly lower specific capacity, and low PFAS detection in the deep zone-well below regulatory thresholds.

Director Figuers expressed enthusiasm for the basin analysis and inquired about specific geological features. Director Green sought clarification on data anomalies during pump testing and voiced concern about PFAS detections, even at low levels. Mr. Lewis explained the bump in water level at Del Prado likely resulted from nearby wells ceasing operation and confirmed that PFAS detections, such as PFHxS, were well below current state thresholds. Director Narum asked about flow depths relative to other basins and future CEQA requirements. Mr. Lewis explained that shallower productive zones can be advantageous, while Mr. Minn and Rebecca Smith, General Counsel, noted CEQA compliance would follow when the project is well defined after the completion of the feasibility study.

President Gambs praised the high-capacity test results and emphasized the importance of modeling potential interference between new and existing wells. He also inquired about total dissolved solids (TDS), which Mr. Lewis explained were assessed indirectly via specific conductance due to data reliability concerns. President Gambs and Director Green raised concerns about PFAS mobilization and regulatory uncertainty. Mr. Minn reassured them that the upcoming modeling and design steps would consider those risks and that any production wells built would be supported by blending and centralized treatment to ensure compliance.

As for future plans, Mr. Minn provided scenarios for how Zone 7 and Pleasanton could share water and infrastructure. He noted that the two highest-performing wells could meet both agencies' needs, potentially resulting in a 50/50 cost split based on capacity. However, he clarified that final recommendations regarding the number of wells and infrastructure configuration would depend on modeling results and feasibility outcomes. Directors Green and Palmer stressed the need for redundancy and long-term planning, particularly in light of regulatory shifts and the potential for PFAS mobilization.

In response to a question about the potential for longer-term pump tests to reveal more about subsurface barriers, Mr. Minn cited regulatory and practical constraints but expressed confidence in the model's robustness. He noted that the geologic data collected matched the conceptual model closely, reinforcing its reliability.

Ms. Pryor confirmed that the City of Pleasanton's participation remains voluntary, but Zone 7 would move forward regardless, as the agency has long identified the need for new groundwater sources in its Capital Improvement Plan. The meeting concluded with consensus that the project shows great promise in addressing long-term water supply, regulatory, and cost challenges.

Item 12 -

12. Committees

There were no comments on the notes from the Administrative, Legislative, or Finance Committee meetings.

Item 13 -

13. Reports - Directors

Director Palmer submitted a written report and provided an update on recent advocacy and outreach efforts. She shared that she, along with Carol Mahoney and Zone 7's legislative advocate Mark Smith, recently met with Senator McNerney to discuss Zone 7's activities and the Delta Conveyance Project (DCP). She also participated in a broader advocacy effort in Sacramento, where five teams, one of which she and Carol Mahoney joined, met with approximately eight legislators or their staff. Their team included representatives from Valley Water, Alameda County, Groundswell (advocating for disadvantaged communities), and the Operating Engineers union, presenting information on both the state trailer bill and the DCP.

Director Palmer highlighted a conversation with Karla Nemeth, Director of the California Department of Water Resources, which occurred informally during a technically challenged ACWA meeting. She encouraged colleagues to review recent updates on the DCP, particularly regarding cost containment and engineering innovations, and mentioned her report included references to discussions from the Association of Women in Water, Energy and Environment on California's water future. She stressed the importance of education to address public misunderstandings about the project. Finally, she announced that a joint meeting between the Alameda County and Contra Costa Special District Associations is scheduled for July 9 and encouraged attention to the forthcoming location details. She noted that she was unable to attend the last special districts meeting due to her attendance at an ACWA conference.

Item 14 -

14. Items for Future Agenda

No items were requested for consideration at an upcoming Board meeting.

Item 15 -

15. Staff Reports

Valerie Pryor noted that several written staff reports had been provided and offered to answer any questions or comments. She had no specific items to highlight but shared an announcement on behalf of Donna Fabian: that it was Zone 7's birthday, marking 68 years since its founding. Director Palmer acknowledged the milestone with appreciation, and President Gambs suggested planning something special for the agency's 70th anniversary. Ms. Pryor confirmed that this is already on the list of future plans.

Item 16 -

16. Adjournment

President Gambs adjourned the meeting at 9:32 p.m.

You are here

Zone 7 Meeting - June 18, 2025

Site Search