Zone 7 Meeting - November 16, 2022

3. Open Session and Report Out of Closed Session

4. Pledge of Allegiance

5. Roll Call of Directors

6. Public Comment

7. Consent Calendar

8. Minutes

9. Wholesale Water Rate Study and Proposed Treated Water Rates for Calendar Years 2023, 2024, 2025 and 2026

10. Joint Funding Agreement with USGS for Installation and Annual Stream Gauge Operations and Maintenance

11. Authorization for Commercial Septic System Use at Darcie Kent Vineyards, LLC, 7000 Tesla Rd., (APN 099A-1601-006-07), Case #22-00

12. Authorization for Commercial Septic System Use at Birch Creek Ranch, LLC, 8433 Patterson Pass Rd., (APN 099A-1650-001-05), Case #21-022

13. Committees

14. Reports - Directors

15. Items for Future Agenda - Directors

16. Staff Reports

17. Adjournment


MINUTES OF THE BOARD OF DIRECTORS

ZONE 7

ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT

REGULAR MEETING

November 16, 2022

The following were present:

DIRECTORS PRESENT: DAWN BENSON

SANDY FIGUERS

DIRECTOR GAMBS

LAURENE GREEN

SARAH PALMER

ANGELA RAMIREZ HOLMES

OLIVIA SANWONG

DIRECTORS ABSENT: NONE

STAFF PRESENT: VALERIE PRYOR, GENERAL MANAGER

HEATH MCMAHON, ASSISTANT GENERAL MANAGER - ENGINEERING

OSBORN SOLITEI, TREASURER/ASSISTANT GENERAL MANAGER - FINANCE

JARNAIL CHAHAL, ENGINEERING MANAGER

CAROL MAHONEY, GOVERNMENT RELATIONS MANAGER

KEN MINN, GROUNDWATER RESOURCES MANAGER

JEFF TANG, ACTING PRINCIPAL ENGINEER

JAVIA GREEN, FINANCIAL ANALYST

MICHELLE PARENT, WATER RESOURCES TECHNICIAN

DONNA FABIAN, EXECUTIVE ASSISTANT

GENERAL COUNSEL: REBECCA SMITH, DOWNEY BRAND

Item 1 - Call Zone 7 Water Agency Meeting to Order

President Palmer called the Regular Meeting of the Board of Directors to order at 7:15 p.m.

Item 2 - Closed Session

The Board went into Closed Session at 5:48 p.m. and came out of Closed Session at 6:46 p.m.

Item 3 - O

3. Open Session and Report Out of Closed Session

There was nothing to report out of Closed Session.

Item 4 -

4. Pledge of Allegiance

President Palmer led the Pledge of Allegiance.

Item 5 -

5. Roll Call of Directors

All Directors were present.

Item 6 -

6. Public Comment

Audrey Egger, a 3rd grade student at Joe Michell School in Livermore, thanked Zone 7 for going to her class and teaching her about water.

Item 7 -

7. Consent Calendar

Director Green pulled Item 7e. Director Ramirez Holmes moved to approve Items 7a, 7b, 7c, and 7d and Director Benson seconded the motion. The items were approved by a roll call vote of 7-0. Director Green asked that the resolution be amended to include her for the out of state travel to the ACWA Washington D.C. Conference. Director Green moved to approve Item 7e and Director Figuers seconded the motion. Item 7e was approved by a roll call vote of 7-0.

Item 8 -

8. Minutes

The Special Board Meeting Minutes of August 10th and August 31st, and the Regular Board Meeting Minutes of October 19, 2022, were approved by a roll call vote of 7-0.

Item 9 -

9. Wholesale Water Rate Study and Proposed Treated Water Rates for Calendar Years 2023, 2024, 2025 and 2026

JaVia Green, Financial Analyst, presented three scenarios for the Board to consider adopting the treated water rates for calendar years 2023 through 2026, effective February 1, 2023. Scenario 4 would include rate revenue adjustments of 5% per year with $2.6 million in capital funding for the Stoneridge PFAS project. Scenario 4B includes rates revenue adjustments of 5.5% per year with $2.9 million in capital funding for the Stoneridge PFAS project. In Scenarios 4 and 4B, the remaining capital costs for the Stoneridge Well PFAS project would be funded from project deferrals and reserves, and reserves would not be replenished through water rates. Scenario 5 would include rate revenue adjustments of 7.5% per year with $16.3 million in capital funding for the Stoneridge PFAS project. Fund 100 reserves would be at target level by the end of the four-year rate cycle.

President Palmer made a motion to approve Scenario 5 and Director Green seconded the motion. Directors Benson, Ramirez Holmes and Sanwong voted no, and Directors Figuers and Gambs abstained.

Director Green made a motion to approve a 6.2% rate revenue adjustment, but it didn't receive a second.

President Palmer made a motion to approve Scenario 4B and Director Figuers seconded the motion. The motion passed with a roll call vote of 5-2 with Directors Green and Sanwong dissenting.

Item 10 -

10. Joint Funding Agreement with USGS for Installation and Annual Stream Gauge Operations and Maintenance

Jeff Tang, Acting Principal Engineer for Flood Protection Engineering, gave a presentation on the request for a Joint Funding Agreement with USGS for installation and annual stream gauge operations and maintenance. Mr. Tang stated that this new gauging station will help with hydraulic modeling and with the early storm and flood warning system network that staff are developing.

Director Figuers moved to approve the item and Director Benson seconded the motion. The item was approved by a roll call vote of 7-0.

Item 11 -

11. Authorization for Commercial Septic System Use at Darcie Kent Vineyards, LLC, 7000 Tesla Rd., (APN 099A-1601-006-07), Case #22-00

Michelle Parent, Water Resources Technician, gave a presentation requesting authorization for a commercial septic system at Darcie Kent Vineyards' cannabis retail facility. Ms. Parent gave a background on the site, its proposed use, the proposed nitrogen load, and the Alameda County Department of Environmental Health's conditional approval requirements.

The Board discussed the timeline and lack of clarity of the proposed mitigation measures, the anticipated expansion of the municipal sewer system, and the potential of more than doubling the load of wastewater in the groundwater.

Director Figuers made a motion that the item to be brought to the Water Resources Committee for further discussion and Director Benson seconded the motion. The Board agreed with a roll call vote of 7-0.

Item 12 -

12. Authorization for Commercial Septic System Use at Birch Creek Ranch, LLC, 8433 Patterson Pass Rd., (APN 099A-1650-001-05), Case #21-022

Michelle Parent gave a presentation requesting authorization for a commercial septic system use at Birch Creek Ranch for a proposed commercial olive oil tasting facility. Ms. Parent gave a background on the site, its proposed use, the proposed nitrogen load, and the Alameda County Department of Environmental Health's conditional approval requirements. Ms. Parent said that the owners of the winery wish to convert a storage barn into an olive oil tasting facility, remodel a water tower building to provide two restrooms, and convert a carriage house office into a 1-bedroom residence. Ms. Parent added that the site is outside of the high nitrates area of concern, and Zone 7 approval will be conditioned upon the Alameda County Department of Environmental Health's permit for design.

Director Ramirez Holmes suggested a revision in the resolution under item 4 to remove the words "use of the" so it says, "the proposed septic system."

Director Gambs moved to approve the item with the suggested changes from Director Ramirez Holmes, and Director Figuers seconded the motion. The item was approved by a roll call vote of 7-0.

Item 13 -

13. Committees

There were no comments from the Board on the meeting notes.

Item 14 -

14. Reports - Directors

President Palmer reported that she attended a Water Education Foundation meeting, a webinar on hazardous algae blooms, and a meeting with the DCA staff in Sacramento.

Director Gambs reported that he attended the Alameda County Special District's meeting.

Director Green reported that she attended the ACWA Groundwater Committee meeting.

Director Ramirez Holmes reported that she attended the ACWA State Legislative Committee meeting in Sacramento and the Los Vaqueros JPA (LVJPA) meeting. She added that the LVJPA will begin meeting at Zone 7 for their monthly meetings beginning in February.

Item 15 -

15. Items for Future Agenda - Directors

There were no requests for items for a future agenda.

Item 16 -

16. Staff Reports

Valerie Pryor stated that in the General Manager's Report, on October 31st, the State Board issued the final notification and response levels for PFHSX and there were four wells that were over that response level, but staff are blending two of them, and two of them are offline. She wanted to reassure the Board and the community that the water being distributed is below that response level.

Item 17 -

17. Adjournment

President Palmer adjourned the meeting at 10:01 p.m.