Zone 7 Meeting - October 15, 2025

Director Palmer moved to approve the minutes of the regular Board meeting held on September 17, 2025. The motion was seconded by Director Gambs and approved unanimously by a voice vote of 7-0.

Item 8 -

8. Consent Calendar

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

Item 9 -

9. Proposed Untreated Water Rate for Calendar Year 2026 >

Lizzie Foss, Financial Analyst, presented the Proposed Untreated Water Rate for Calendar Year 2026, noting that the item aligns with Strategic Plan Goal H, Fiscal Responsibility, and Initiative 21. She explained that the calculated untreated water rate for 2026 is $255 per acre-foot, compliant with Board policy guidelines. Based on the Finance Committee's recommendation, the scheduled reconciliation charge would be reduced from $42 to $32, resulting in a proposed total untreated water rate of $287 per acre-foot. Ms. Foss provided background on the annual rate-setting process, which includes reconciling prior-year actual costs and revenues to ensure the untreated water program remains financially balanced. She noted that the program currently has a negative balance of approximately $740,000, primarily due to under-collection during the 2021-2022 drought years, but that recent over-collections have allowed for the proposed charge reduction while still maintaining the five-year repayment schedule.

Director Gambs requested clarification on the rationale for the decrease, and Director Benson explained that the Committee supported the reduction to assist local vineyards undergoing replanting and recovery amid industry challenges. President Narum added that the adjustment maintains the five-year payback period. Director Palmer emphasized the importance of considering agricultural customers and inquired about stakeholder feedback, to which Valerie Pryor, General Manager, responded that staff meets regularly with untreated water customers and that recent feedback indicated financial pressures within the wine industry.

Public comment was received from Ken Wong of Livermore.

Directors expressed support for the proposal, noting that it strikes a balance between fiscal responsibility and supporting the agricultural community. Director Palmer moved approval of the Resolution adopting the Proposed Untreated Water Rate of $287 per acre-foot for Calendar Year 2026, incorporating the Finance Committee's recommendation to reduce the reconciliation charge to $32. The motion was seconded by Director Benson and approved by a roll call vote of 7-0.

Item 10 -

10. Request for Out-of-State Travel to Attend Upcoming Association of California Water Agencies' Washington D.C. Conference >

Ms. Pryor presented the staff recommendation regarding attendance at the upcoming Association of California Water Agencies' (ACWA) Washington D.C. Conference, typically held in February. Ms. Pryor stated that, upon review, staff did not identify any compelling reasons to attend this year's conference. The primary purpose of prior attendance has been to pursue federal funding opportunities and discuss relevant legislation; however, staff does not anticipate funding availability in the upcoming cycle and noted that the Agency's main project, the Mocho PFAS Treatment Plant, was previously not awarded funding. Ms. Pryor added that no significant federal legislation currently affects the Agency and that staff maintains strong relationships with local legislators. Ms. Pryor presented options for the Board to either concur with staff's recommendation not to attend or to authorize attendance by Resolution, if desired.

Director Brown inquired about the previously unfunded project, and Ms. Pryor confirmed it was the Mocho PFAS Treatment Plant.

Public comment was received from Andrew Turnbull of Sunol.

Director Palmer expressed support for the staff recommendation, noting that while the conference has been beneficial in the past, it would not be a prudent use of time and resources this year given the lack of actionable items. She suggested instead focusing on local engagement with federal representatives while they are in California. Director Benson seconded this approach, emphasizing cost-effectiveness and staff workload. Director Figuers also supported the motion, noting that attending without clear objectives would not be productive. Directors Gambs and Narum agreed that outreach could be accomplished locally, and President Narum reported having spoken with Congressman Swalwell, who expressed willingness to meet with Zone 7 representatives.

Director Palmer made a motion to accept staff's recommendation not to send representatives to the ACWA Washington D.C. Conference this year and to pursue meetings locally with federal representatives to promote Zone 7's interests. The motion was seconded by Director Benson and approved by a roll call vote of 7-0.

Item 11 -

11. Committees

There were no Board comments on the Finance Committee meeting notes.

Item 12 -

12. Reports - Directors

President Narum congratulated Osborn Solitei, Treasurer/Assistant General Manager - Finance, and his team on receiving a AAA credit rating from Fitch, noting that the recognition will help lower bond interest rates and reduce costs for ratepayers. She also commended the Board's attendance at the Tri-Valley Mayors' Summit and the positive visibility for Zone 7. President Narum further reported on the recent open house for the Mocho PFAS Treatment Plant, which had strong vendor attendance but no neighborhood participation despite widespread outreach. She complimented staff on the quality of the informational display boards that will be available again during Saturday's Open House.

Director Palmer encouraged both the Board and the public to review her written reports, which include relevant updates for the community. She shared that Region 5 of ACWA recently hosted a successful event, that she will officially assume the role of Region 5 Chair in January, and that ACWA continues its search for an Executive Director after restarting the process. She also reported on the Department of Water Resources' notice of intent for the Delta Conveyance project and the associated public comment period.

Director Gambs reported on his and President Narum's participation in a tour and meeting with the Sutter Extension Water District, highlighting their pre-1914 water rights and their groundwater substitution program that supports Zone 7's reliability during dry years. He also remarked on the positive recognition Zone 7 received at the Tri-Valley Mayors' Summit for its foresight in securing additional state water supplies.

Director Palmer added that Mayor Marchand had emphasized the importance of considering water infrastructure and supply in regional housing development discussions and encouraged continued coordination between water and wastewater agencies and local planners.

Item 13 -

13. Items for Future Agenda

No items were requested for consideration at a future Board meeting.

Item 14 -

14. Staff Reports

Ms. Pryor noted that the usual staff reports were included in the agenda and that she was available to address any questions. She highlighted a few key items, beginning with the quarterly PFAS report. Ms. Pryor stated that, as in previous quarters, PFAS was non-detect in Zone 7's delivered water. She explained that while PFAS is present in the groundwater basin and in many consumer products, it continues to be absent from Zone 7's treated water.

She also provided a brief update on the recent Sutter Extension Water District tour, noting that both directors and staff attended. She shared that Zone 7 has entered into a multi-year option agreement to purchase water from Sutter Extension at a lower cost than market rates during drought years, emphasizing the value of maintaining this partnership.

Lastly, Ms. Pryor announced the upcoming "Water Wonders of Zone 7" Open House to be held on Saturday at the North Canyons facility from 10:00 a.m. to 2:00 p.m. The event will feature exhibits on water management, flood protection, and sandbagging stations, as well as informational displays on the Mocho PFAS Treatment Facility Project.

Item 15 -

15. Adjournment - President Narum adjourned the meeting at 7:56 p.m.

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Zone 7 Meeting - October 15, 2025

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