The minutes were revised to fix a typographical error. On Item 8 it stated that Director Ramirez Holmes seconded the motion when it was Director Benson who seconded the motion.

Director Gambs made a motion to approve the minutes of March 15, 2023, as amended, and Director Ramirez Holmes seconded the motion. The minutes were approved by a roll call vote of 7-0.

Item 8 -

8. Consent Calendar

Director Ramirez Holmes made a motion to approve Items 8a, 8b and 8c and Director Narum seconded the motion. Items 8a, 8b and 8c were approved by a roll call vote of 7-0.

Item 9 -

9. 2023 Annual Sustainability Report

Sal Segura, Associate Engineer, presented the 2023 Annual Sustainability Report which is required by Zone 7's Reliability Policy. Mr. Segura started his presentation by talking about climate conditions. He said that the State saw record amounts of snowfall in the Sierras coming in at 237% of average which is the highest since the Department of Water Resources (DWR) began tracking it.

Mr. Segura then discussed water storage which plays a key role in meeting the demands, especially during a drought. He said staff anticipate replenishing borrowed water from local storage in the near future. Mr. Segura shared a chart that shows the total storage that Zone 7 has, including State Water Project (SWP) carryover, local water, local groundwater in the basin, and Kern County storage and recovery. He added that Zone 7 has been borrowing about 10,000 acre-feet per year.

Mr. Segura then discussed water supply and delivery. He stated that the major component of supply in 2023 is SWP Table A, which came in at about 70%, and the remainder is made up of SWP carryover and the Livermore Valley Groundwater Basin Lake Del Valle carryover. Last year groundwater storage made up 70% of total supply.

Mr. Segura then discussed how Zone 7 intends to match water supplies with water demand. About 80% is made up of incoming supplies, namely the SWP and local water from Lake Del Valle. The remaining 20% will be made up of storage. He added that supplies total 84,500 acre-feet to meet a projected demand of 44,900 acre-feet. The plan will leave a balance of 10,000 acre-feet as SWP carryover for 2024, while 11,400 acre-feet is expected to go to losses.

Mr. Segura shared a chart that represents how supplies and demands are matched up for the next five years. This five-year outlook shows that Zone 7 can meet 100% of its projected demands. He added that years two and three may be subject to some form of conservation due to the drier conditions, but in all, Zone 7 is able to meet the conservative demand projection shown in the chart.

Public comment was received by Kelly Abreu, a resident of Fremont.

Item 10 -

10. Preliminary Water Supply Operations Plan for 2023

Mr. Segura gave a brief presentation on the 2023 Preliminary Water Supply update. He shared a chart that showed last year's supply versus 2023. He provided three potential plans at 75%, 90%, and 100% SWP allocation. Mr. Segura stated that staff anticipate getting more local water and using less groundwater. In 2022, 50% of supply came from groundwater with the rest coming from storage.

In 2022, water supply costs were around $10 million, while 2023 is expected to range anywhere from $5 to $8 million contingent on the final allocation from the SWP allocation and storage opportunities.

Public comment was received by Kelly Abreu, a resident of Fremont.

Item 11 -

11. Ending Drought Emergency

Mr. Segura stated that staff recommends that the Zone 7 Board adopt a resolution declaring an end to the drought emergency, the water shortage contingency plan stage two, and the 15% mandatory conservation. He added that many other districts statewide have already done so, and it makes perfect sense for Zone 7 to follow suit.

Director Ramirez Holmes made a motion to approve ending the drought emergency, and Director Narum seconded the motion. The motion was unanimously approved by a roll call vote of 7-0.

Item 12 -

12. 2022 WSE Update - Draft Final Report

Valerie Pryor, General Manager, stated that this report is informational only. It is staff's draft final report on the 2022 Water Supply Evaluation (WSE) update, which is a long-term planning document that does not look at current conditions, but rather, considers the circumstances in 2045. Ms. Pryor introduced Lillian Xie.

Lillian Xie, Associate Engineer, presented the update. Ms. Xie stated that the purpose of the WSE update is to evaluate Zone 7's long-term water supply reliability. It is not focused on what is happening today or what is happening in the short term. She stated that long-term reliability will decline without investments in new water supply and storage projects due to several factors such as aging infrastructure and climate change.

Ms. Xie shared a slide that summarized the assumptions staff made. The projects staff reviewed are Sites Reservoir, Desal, Potable Reuse, Transfers, the Los Vaqueros Reservoir Expansion (LVE) and the Delta Conveyance Project (DCP). Most of these projects will come online in 2030 and some portfolios include annual transfers of 10,000 acre-feet every year prior to 2030. DCP will come online around 2040 and although it does not provide new supply, it restores about 6,500 acre-feet per year of SWP supply that would have otherwise been lost DCP.

Staff found that all eight multi-project portfolios meet the 90% reliability goal in 2045. Only three of those portfolios are able to meet the 99% reliability goal in 2045 and annual transfers of 10,000 acre-feet per year through 2030 will help reduce shortages even past 2030.

Ms. Xie stated that staff recommends maintaining and updating the new risk model to support Zone 7's water supply planning; continue to participate in and evaluate water supply reliability projects, evaluate new opportunities to diversity the water supply portfolio, consider revising the 99% reliability goal, and pursue annual transfers averaging 10,000 acre-feet per year until additional long-term supply sources become available. The presentation will be uploaded to the Zone 7 website.

Public comment was received by Dan McIntyre, General Manager, Dublin San Ramon Services District.

Item 13 -

13. Award of Construction Phase Contracts for Chain of Lakes (COL) PFAS Treatment Facility Project

Elliot Levitsky, Assistant Engineer, discussed the Chain of Lakes (COL) PFAS treatment facility project and the award of three construction phase contracts. He presented the project background and scope and explained how the project aligns with the Agency's Strategic Plan Initiatives 5 and 6. Mr. Levitsky noted that the Board awarded a design contract to Carollo Engineers for the COL PFAS treatment facility in May 2021. The design was 100% completed in December 2022. An initial study was done for the project and the Notice of Exemption from the California Environmental Quality Act was filed with Alameda County in September 2022. The main components include the installation of pre-treatment filters and 12 pressure vessels containing the ion exchange media. Integrating this new treatment process into the existing well system will require various yard piping, valving modifications, and new electrical gear and instrumentation. Mr. Levitsky reviewed the results of the construction bid process, the anticipated project schedule, and the necessary support contracts during the construction phase. Mr. Levitsky also discussed the project costs, funding, and staff's recommended actions to adopt three resolutions:

. Authorize awarding a construction contract to Mountain Cascade Incorporated in an amount not to exceed $17,289,328, which includes 10% contingency and appropriate an additional $9.4 million in the fiscal year 2022-2023 budget from Fund 120.

. Authorize a contract amendment to include engineering services during construction and programming services with Carollo Engineer Incorporated in an amount not to exceed $1,927,000, which includes 10% contingency.

. Authorize a construction management services contract awarding to MWH Constructors Incorporated in an amount not to exceed $1,886,400, which includes 10% contingency.

A Board discussion took place. Brandon Woods, Senior Engineer, addressed some of the directors' questions and concerns. The Board discussed various project elements, including the size and type of vessels, types of media, funding appropriation and bond financing, noise concerns, maintenance, and the state regulatory standpoint timeline.

Director Green made a motion to approve the resolution awarding the construction contract for the COL PFAS Treatment Facility Project. Director Gambs seconded the motion.

Director Green made a motion to approve the resolution awarding the engineering services during the construction contract for the COL PFAS Treatment Facility Project. Director Narum seconded the motion.

Director Green made a motion to approve the resolution awarding the construction management services contract for the COL PFAS Treatment Facility Project. Director Narum seconded the motion.

The Board voted unanimously to approve all three resolutions by a roll call vote of 7-0.

Item 14 -

14. Adoption of Calendar Year 2023 Untreated Water Rate for Article 21 Water

Ms. Pryor stated that staff would like to set a special rate for Article 21 water, which is extra water beyond Table A water from the SWP. DWR has excess water in the system that they cannot store it, so they are offering it for immediate delivery. This water cannot be stored, and it cannot replace already scheduled Table A water.

Ms. Pryor stated that this water is likely to be in the $75 to $150 per acre-foot range, and staff would like to offer it to the untreated water customers at cost. This is not allowed with the current rate schedule unless approved by the Board.

Director Ramirez Holmes moved to approve the special rate and Director Benson seconded the motion. The resolution was approved by a roll call vote of 7-0.

Item 15 -

15. Declaration of May as Water Awareness Month

Ms. Pryor stated that Water Awareness Month is celebrated in May in California and during that month, water agencies throughout the state conduct outreach and education events. Staff work with DWR and Association of California Water Agencies (ACWA) and the Save Our Water program. Staff also work with the retailers on a number of events and activities. Additionally, to help celebrate Water Awareness Month, Girl Scout Troop 31253 has designed a Zone 7 free little library to be installed at the Parkside offices in May. Staff would also like Troop 31253 to attend the May Board meeting to formally present the project and receive recognition.

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

Item 16 -

16. General Manager's Compensation

President Palmer read the resolution to approve a salary increase for the General Manager which includes a salary increase of 6%. Director Ramirez Holmes stated that the General Manager's proposed increase is the same amount that was granted to all employees last July. Director Ramirez Holmes made a motion to increase the General Manager's salary by 6% and Director Green seconded the motion. The item was approved by a roll call vote of 7-0.

Item 17 -

17. Committees

There were no comments on the Committee meeting notes.

Item 18 -

18. Reports - Directors

President Palmer and Director Green provided written reports.

Director Ramirez Holmes stated that the Los Vaqueros JPA had a state legislative day in Sacramento with various legislators and staff, as well as staff from the Governor's administration to advocate for the project. She also attended the Dublin San Ramon Services District (DSRSD) 70th anniversary celebration, and the Dublin State of the City address. She stated that the Los Vaqueros JPA will have an open house at the ACWA Spring Conference on May 9th, and the Los Vaqueros Reservoir is having its 25th anniversary and open house on May 20th.

Director Green also attended the DSRSD 70th anniversary celebration and a discussion on PFAS.

Director Benson also attended the State of the City of Dublin, and she added that East Bay Municipal Utility District (EBMUD) is celebrating 100 years on May 21st at Lake Temescal.

Directors Gambs and Narum reported attending the Grasslands Water Agency tour.

Item 19 -

19. Items for Future Agenda - Directors

Director Green requested that subsidizing candidate statement fees for elections be discussed at a future Board meeting.

Item 20 -

20. Staff Reports

There was no discussion on the staff reports.

Item 21 -

21. Adjournment

President Palmer adjourned the meeting at 9:41 p.m.

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Zone 7 Meeting - April 19, 2023

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