The Board entered Closed Session at 5:31 p.m., Director Palmer arrived at 5:33 p.m., Director Figuers arrived at 5:39 p.m., and the Board adjourned at 6:44 p.m.

Item 3 -

3. Open Session and Report Out of Closed Session

President Gambs stated that the Board met in Closed Session and will report out under Item 13.

Item 4 -

4. Pledge of Allegiance

Director Benson led the Pledge of Allegiance.

Item 5 -

5. Roll Call of Directors

All Directors were present.

Item 6 -

6. Public Comment on Non-Agenda Items

There was no public comment.

Item 7 -

7. Minutes

Director Benson moved to approve the minutes from the regular Board meeting on March 19, 2025, seconded by Director Narum. The motion was approved by a voice vote of 7-0.

Item 8 -

8. Consent Calendar

Director Narum expressed her support for the selection of the new auditor. President Gambs commented that he was glad to hear that, as he had hoped to receive input from the Finance Committee. He suggested that in the future, when selecting an auditor, staff should share the evaluation criteria with the Finance Committee to gather feedback before the selection committee proceeds. He noted that since the auditor reports to the Board, involving them early in the process would be appropriate.

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

Item 9 -

9. 2025 Annual Review of the Sustainable Water Supply Report >

Sal Segura, Associate Civil Engineer, presented the 2025 Annual Review of the Sustainable Water Supply Report, as required annually under Zone 7's Reliability Policy since 2012. His presentation covered weather conditions, storage levels, and projected supply and delivery. Highlights included a below-average local rainfall year, with Zone 7 expecting at least a 40% allocation from the State Water Project and approximately 5,000 acre-feet from Lake Del Valle. Zone 7 plans to supply about 6,000 acre-feet from groundwater and will suspend recharge to the main basin due to its current full state. Staff are also evaluating opportunities to bank water through Kern County storage and recovery programs.

Mr. Segura explained that while the statewide hydrologic outlook was considered average, snowpack on April 1st measured at 96% of average, and the Northern Sierra's 8-Station Index indicated 118% of average precipitation. Additional rainfall in early April brought totals to slightly above the 30-year average. In contrast, Livermore's local precipitation was at 79% of its April 1st average, totaling nearly 10 inches for the water year to date.

He reported that Zone 7's groundwater basin is currently at 100% capacity, with some overflow occurring into Arroyo de la Laguna in Pleasanton at a rate of 125 acre-feet per month. As a result, staff are looking into strategies to manage the basin's full condition. Regarding Kern County storage and recovery operations, Mr. Segura showed that Zone 7 had withdrawn approximately 30,000 acre-feet during the 2020-2022 drought but has since begun replenishing those reserves. Total end-of-year storage, including all sources, has increased by an average of 2,000 acre-feet annually over the past five years, with the local groundwater basin representing the largest portion.

In terms of water supply and delivery, Mr. Segura noted that the 2025 water supply portfolio consists primarily of State Water Project Table A and carryover water (67%), with the rest coming from the groundwater basin, Lake Del Valle, and a minor water transfer. This year's available supply totals approximately 61,600 acre-feet, compared to a projected demand of 40,500 acre-feet. Zone 7 intends to carry over 15,000 acre-feet in State Water Project supplies and 5,000 acre-feet in Lake Del Valle for 2026. For 2026, with an assumed 10% State Water Project allocation in a critically dry year, the agency expects to supply 54,200 acre-feet against an estimated demand of 43,000 acre-feet.

The five-year outlook indicates that Zone 7 will be able to meet 100% of projected demands, though years two and three may require conservation measures depending on hydrologic conditions. Mr. Segura reiterated that projections account for Pleasanton's 3,500 acre-foot groundwater pumping quota and are adjusted annually to reflect evolving conditions.

Director Narum asked if the treated water demand numbers were based on information from retailers. Mr. Segura confirmed that 2025 and 2026 estimates had been prorated by 10%, and years 2027-2029 were based directly on retailer requests. When Director Narum expressed surprise at the over 10% increase in demand despite limited development, Mr. Segura clarified that the figures were based on conservative planning assumptions and anticipated full deliveries beyond 2026, barring critically dry conditions.

President Gambs questioned the assumptions in the supply projections and asked whether a probability model might eventually be used. Mr. Segura noted that while staff have aimed to be as pessimistic as possible in modeling, Zone 7 remains solvent across modeled scenarios. President Gambs added that, while year-to-year predictions are difficult, the five-year perspective helps smooth variability and provides time to recover. He also remarked on the rarity of the groundwater basin being completely full, which adds to the district's resilience.

Director Benson expressed appreciation for staff's effective management and oversight of the water supply. President Gambs concluded the item by noting that the full groundwater basin is a critical asset, although its current state limits the ability to store more water, necessitating alternative strategies.

Item 10 -

10. Award of Construction Phase Contract for North Canyons Electric Vehicle Chargers >

James Carney, Senior Planner, presented the proposal to award a construction contract for installing electric vehicle (EV) chargers at the North Canyons facility. He began by explaining how the project aligns with the District's 2025-2029 Strategic Plan (Goal F, Initiative 15) and supports the energy policy adopted by the Board last year. He reviewed state regulatory requirements that are driving fleet electrification, particularly the California Air Resources Board's Advanced Clean Fleets regulation, which mandates that beginning in 2027, all medium- and heavy-duty vehicle purchases must be zero-emission. Mr. Carney explained that currently, 50% of such purchases must be zero emission, and the agency has flexibility on when to replace vehicles. He also described the Advanced Clean Cars II regulation, which mandates that all light-duty vehicles sold in California be zero-emission by 2035.

Mr. Carney outlined why North Canyons was selected for the initial installation: it's less complex than Del Valle and primarily houses light-duty, standard vehicles, making replacement easier and more cost-effective. The site will also support public and employee use of EV chargers. Design work began in September 2023 and concluded in July 2024, with construction bids solicited in February 2025 and opened in March. Aztec Consultants was identified as the lowest responsive and responsible bidder at $479,000, with a recommended contract not to exceed $526,900 including contingency.

He then detailed the planned charger layout: five dual-connector chargers in the secured fleet lot and four dual-port chargers in the public/employee parking area, plus two ADA-compliant single-connector chargers. All chargers will be Level 2, suitable for overnight fleet charging and short-term public use. Infrastructure improvements include conduit trenching, installation of a panel board and step-down transformer, and ADA upgrades including new stalls and striping.

During board discussion, Director Palmer asked when compliance is required. Mr. Carney clarified that while the 2030s are the general statewide goal, purchase requirements for zero-emission vehicles start in 2027. Director Palmer also confirmed that the current 50% rule is already in effect and that 100% compliance starts in 2027. Director Narum inquired about grant funding. Mr. Carney explained that the project didn't qualify for certain California Energy Commission grants due to vehicle type and timing requirements, though he continues to explore funding opportunities. Director Narum also asked if 10 chargers in the secured lot are sufficient for the 16 vehicles stationed there. Mr. Carney affirmed that with overnight charging and flexible connector access, this setup should be adequate in the short to medium term. Director Palmer inquired about plans for Del Valle and Patterson Pass. Mr. Carney confirmed that fleet electrification at those sites is included in the CIP and expected to be necessary within 10 years.

President Gambs commented that while power cost at the site may not have been a primary factor, it should be considered for future installations. He also noted that the project supports staff commuting by EV, adding that while users will pay for power, it's a valuable benefit.

Director Narum made a motion to approve the contract, and Director Palmer seconded the motion. The motion was approved by a roll call vote of 7-0.

Item 11 -

11. Award a Contract for Owner's Representative Services and Amend Contract for Public Relations Services for the Mocho PFAS Treatment Plant and Electrical Improvements Project >

Brandon Woods, Acting Principal Engineer, presented an overview of the Mocho PFAS Treatment Plant and Electrical Improvements Project, emphasizing its alignment with Zone 7's Strategic Plan Initiatives 6 and 10, and Goal G. The Mocho Wellfield, located near Stoneridge Drive and Santa Rita Road in Pleasanton, consists of three wells, Mochos 2, 3, and 4, which together can produce up to 16 million gallons per day (MGD), representing about 40% of Zone 7's groundwater capacity. However, due to elevated PFAS levels, especially PFOS, which continues to trend upward, output is currently limited to about 5 MGD, all of which must be treated through the Mocho Groundwater Demineralization Plant (MGDP). A site near Well 3 was identified as the most feasible location for a treatment facility through prior studies. Though Zone 7 does not own the site, it holds easements. The land is owned by the City of Pleasanton and Dublin San Ramon Services District.

The project's main goal is to remove PFAS from the water supply to restore wellfield capacity and ensure reliable drinking water. Proposed improvements include installing PFAS treatment vessels similar to those used at Stoneridge and Chain of Lakes, piping upgrades between Mocho 3 and MGDP, a new pump station, and significant electrical and instrumentation enhancements. The estimated cost ranges from $35 to $51 million, with $35.5 million currently budgeted in the five-year Capital Improvement Plan. An additional $1.2 million in grant funding from DWR has been conditionally approved for the electrical portion, and federal funding options are being pursued. While preliminary renderings exist, visual screening and detailed designs will be developed as the project progresses.

To streamline delivery and manage risk, the project will utilize the progressive design-build (PDB) method-enabled by recent legislation (SB 991, signed in 2023). This allows a designer-contractor team to be selected based on qualifications rather than low bid, enabling greater innovation, faster equipment procurement, and an accelerated construction timeline, potentially shortening the project by a year. It also offers cost certainty through a guaranteed maximum price (GMP) with open-book pricing. Mr. Woods explained that the first of several Board actions would be awarding a contract to an Owner's Representative (OR) to assist with drafting the RFP for the design-build team, support the contractor selection process, negotiate the PDB contract, assist with CEQA and public outreach, and provide technical oversight and cost reviews throughout the project.

Additional efforts underway include environmental review through an Initial Study to inform the CEQA document, development of a public outreach plan including community meetings, and coordination with the City of Pleasanton and DSRSD for additional easements. Staff recommended authorizing the General Manager to execute a professional services agreement with Carollo Engineers for OR services in an amount not to exceed $657,000 (including a 10% contingency) and to amend a contract with Axiom of Purpose for public outreach services, not to exceed $105,000, for a total combined amount of $868,500.

Director Benson asked what kind of community outreach is anticipated. Mr. Woods responded that public meetings will begin during the CEQA process, with further outreach planned closer to construction, noting the site is at a major intersection and near a residential neighborhood. Director Green expressed strong support for the approach, particularly the accelerated schedule and early procurement of critical equipment, and asked if the PDB process was a new option. Mr. Woods confirmed it became available through SB 991 in early 2023. Director Figuers raised concern that PFAS impacts could conflict with Item 9 (Sustainable Water Supply), suggesting a scenario analysis if the Mocho Wellfield were shut down for an extended period. Ms. Pryor responded that Zone 7 managed through the shutdown of the Chain of Lakes wells in the past and has diverse water supply options in place.

A motion was made by Director Palmer to approve the resolutions, seconded by Director Green. The motion passed by a roll call vote of 7-0.

Item 12 -

12. Declaration of May as Water Awareness Month >

Valerie Pryor, General Manager, stated that May is recognized as Water Awareness Month in California. During this time, water agencies conduct public outreach and educational activities to raise awareness about the importance of water conservation and efficiency. Zone 7 traditionally supports this effort through a Board resolution and participation in community events, including coordination with local retailers.

This year's activities include public tours of the Patterson Pass Water Treatment Plant on May 3rd, hosted by Zone 7, and wastewater treatment plant tours hosted by Dublin San Ramon Services District on May 4th. Zone 7 is also participating in the Bringing Back the Natives Garden Tour and other events detailed in the report.

Director Palmer moved to approve the resolution, with a second by Director Benson. The motion was approved by a roll call vote of 7-0.

Item 13 -

13. Approve an Amendment to the Employment Agreement - General Manager for Compensation and Salary Increase >

President Gambs reported that the Closed Session resulted in a recommendation to amend the General Manager's employment agreement to reflect a compensation and salary adjustment.

Director Palmer moved to approve the resolution, which includes a one-time 5% payment in recognition of outstanding performance during the 2024 annual review process, and a 7% increase to the General Manager's base salary, effective April 27, 2025.

Director Narum seconded the motion and commended the General Manager for extraordinary performance, particularly in successfully facilitating the dissolution of the Los Vaqueros JPA.

Directors Palmer, Green, Benson, Figuers, and President Gambs each expressed their appreciation for the General Manager's leadership, citing accomplishments such as statewide and national recognition, exemplary representation of Zone 7, success with PFAS treatment projects, water supply reliability efforts, financial acumen, strong staff development, and a collaborative, relationship-based leadership style.

Director Palmer moved to approve the salary increase for the General Manager, with a second by Director Narum. The motion was approved by a roll call vote of 7-0.

Item 14 -

14. Committees

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

Item 15 -

15. Reports - Directors

President Gambs shared that Dick Karn, former engineer-manager for the Alameda County Flood Control District, recently passed away. Before the formation of Zone 7's dedicated staff and the general manager role, board staffing came from Mr. Karn's team. Under his leadership, the agency secured its contract for the State Water Project, and he appears in the historic photograph of the signing ceremony. Mr. Karn, a long-time Pleasanton resident, was also known for his firm, Bissell & Karn, and was a well-respected community leader. President Gambs noted that his own father attended Fremont High School in Oakland with Mr. Karn, and he considered it a personal honor to have met him. He requested that the meeting be adjourned in Mr. Karn's name.

Director Benson reported that she attended the Contra Costa County Special Districts Association meeting and plans to attend the State of the City of Dublin event the following week.

Director Palmer shared that she participated in the California Endangered Species Act streamlining workgroup. She also noted that a joint meeting of the Alameda County and Contra Costa Special Districts Associations is planned for July, and a membership meeting will be held at the Livermore Area Recreation and Park District on May 14.

President Gambs concluded by thanking staff for organizing the ribbon-cutting ceremony for the PFAS treatment system at Chain of Lakes.

Item 16 -

16. Items for Future Agenda

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

Item 17 -

17. Staff Reports

Valerie Pryor, General Manager, provided highlights from the staff reports. She wanted to spotlight a recent employee-led initiative where staff collaborated with CityServe in a volunteer activity involving shifts to serve lunch, set up household items, and sort supplies for clients. Ms. Pryor expressed appreciation to the staff who participated and thanked the Board for supporting employee-led initiatives, which have also included recreational and team-building activities such as ping pong tables and basketball hoops. She then called attention to the final item in the report, Item 17f, which is a status update on the Flood Management Plan Phase 1 goals and objectives. She explained that while the Board previously adopted the high-level Phase 1 plan and staff has been working on Phase 2A, there has not been much visible progress because this phase has focused on technical modeling. Consultants have been conducting an intensive update of the hydrologic and hydraulic model, and the results of this system-wide evaluation will be presented at the May Board meeting. Ms. Pryor noted that the timeline for certain goals and objectives from Phase 1 has shifted and emphasized the importance of communicating these schedule changes to the Board and the public. She reassured the Board that progress is ongoing and that the evaluation to be presented next month will serve as the foundational element for the next phase of the Flood Management Plan.

Item 18 -

18. Adjournment

President Gambs adjourned the meeting at 8:27 p.m. in honor of Dick Karn.

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Zone 7 Meeting - April 16, 2025

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