Open Session and Pledge of Allegiance

Report Out ot Closed Session

Citizens Forum

Minutes-Special Board Meeting of May 2, 2019 and Regular Board Meeting of May 15, 2019

Consent Calendar

Staffing Update

Presentation of "Above and Beyond" Award to Zone 7 Water Agency by Employer Support of the Guard and Reserve

Appointment of Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA) Board Representative and Alternate Board Representative

Resolution of Support for Director Palmer to Serve on the ACWA Region 5 Board

Conservation Program Update/

Water Supply Operations Plan for 2019

Proposed Changes to the FY 2019-20 Capital Budget

Proposed Mid-Cycle Budget Amendment for FY 2019-20

Independent Accountant's Report on Applying Agreed-Upon Procedures for the Agency in Regards to Procurement Card Transactions for the Calendar Year Ended December 31, 2018

Purchase Emergency Generators from Peterson Power Systems, Inc.

Committees: Water Resources Committee Meeting - May 13, 2019 - notes

Reports-Directors

Items for Future Agenda-Directors

Staff Reports

Adjournment

MINUTES OF THE BOARD OF DIRECTORS
ZONE 7
ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT

________________________________________________________________

REGULAR MEETING

June 19, 2019

The following were present:

DIRECTORS: SANDS FIGUERS

DENNIS GAMBS

SARAH PALMER

DICK QUIGLEY

OLIVIA SANWONG

MICHELLE SMITH MCDONALD

DIRECTORS ABSENT: ANGELA RAMIREZ HOLMES

ZONE 7 STAFF: VALERIE PRYOR, GENERAL MANAGER

OSBORN SOLITEI, TREASURER/ASSISTANT GENERAL MANAGER, FINANCE

COLTER ANDERSEN, PRODUCTION MANAGER

JARNAIL CHAHAL, ENGINEERING MANAGER

CAROL MAHONEY, INTEGRATED WATER RESOURCES MANAGER

ROBYN NAVARRA, WATER CONSERVATION COORDINATOR

DONNA FABIAN, ACTING BOARD SECRETARY

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 1 - Call Meeting to Order

Vice President Figuers called the meeting to order at 6:00 p.m. and the Board immediately went into Closed Session.

Item 2 - Closed Session

(a) Conference with Labor Negotiators pursuant to Government Code section 54954.5:

Agency Negotiator: Valerie Pryor

Employee Organizations: Alameda County Management Employees Association; Alameda

County Building and Construction Trades Council, Local 342, AFL-CIO; International

Federation of Professional and Technical Engineers, Local 21, AFL-CIO; Local 1021 of the

Service Employees International Union, CTW; Unrepresented Management

(b) Conference with Legal Counsel - Existing litigation pursuant to Government Code 54956.9(d)(1). 2 cases. (1) Edwin Belshe and Ginger Belshe v. Alameda County Flood Control and Water Conservation District, Zone 7, et al., Alameda County Superior Court Case No. RG17868354; (2) City and County of San Francisco v. City of Dublin et al., Contra Costa County Superior Court Case No. CIV MSN18-0928

(c) Conference with Legal Counsel - Potential litigation pursuant to Gov't Code section 54956.9(d) (4): 2 cases

(d) Conference with Legal Counsel - Potential litigation pursuant to Gov't Code section 54956.9(d) (2): 2 cases

Item 3 -

Open Session and Pledge of Allegiance

Vice President Figuers called the meeting back into session at 7:00 p.m. and led the Salute to the Flag.

Item 4 -

Report Out ot Closed Session

Vice President Figuers said there were several items to report from Closed Session. The first item was regarding negotiations with Service Employees International Union, CTW (SEIU) Local 1021. The proposal was for a 3% COLA increase as of June 30, 2019, a 3% increase as of June 28, 2020, and a 3% increase as of June 27, 2021.

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-39 Memorandum of Understanding - Northern California Public Sector Region, Local 1021 of the Service Employees International Union, CTW (SEIU)

The next item was regarding an Amendment to Footnotes to Salary Schedule Section 2.3 - Boot Allowance (SEIU).

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-40 Amendment to Appendix A, Footnotes to Salary Schedule 2.3

The next item was regarding negotiations with the Building and Construction Trades Council. The proposal was for a 3% COLA increase as of June 30, 2019, a 3% increase as of June 28, 2020, and a 3% increase as of June 27, 2021.

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-41 Memorandum of Understanding - Alameda County Building & Construction Trades Council

The next item was regarding an Amendment to Footnotes to Salary Schedule Section 2.5 - Boot Allowance (Building Trades).

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-42 Amendment to Appendix A, Footnotes to Salary Schedule 2.5

The next item was regarding negotiations with the International Federation of Professional and Technical Engineers, Local 21. The proposal was for a 3% COLA increase as of June 30, 2019, a 3% increase as of June 28, 2020, and a 3% increase as of June 27, 2021.

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-43 Memorandum of Understanding - International Federation of Professional and Technical Engineers, Local 21 (IFPTE Local 21)

The next item was regarding negotiations with Alameda County Management Employees Association (ACMEA). The proposal was for a 3% COLA increase as of June 30, 2019, a 3% increase as of June 28, 2020, and a 3% increase as of June 27, 2021.

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-44 Memorandum of Understanding - Alameda County Management Employees Association (ACMEA)

The next item was regarding an Amendment to Footnotes to Salary Schedule Section 2.8 - Boot Allowance (ACMEA).

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-45 Amendment to Appendix A, Footnotes to Salary Schedule 2.8

The next item was regarding negotiations with unrepresented classifications in Zone 7. The proposal was for a 3% COLA increase as of June 30, 2019, a 3% increase as of June 28, 2020, and a 3% increase as of June 27, 2021.

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-46 Salary Adjustments - Unrepresented Classifications

The next item was regarding an Amendment to Footnotes to Salary Schedule Section 2.7 - Boot Allowance (Unrepresented).

Director Quigley moved to approve the item, and Director Palmer seconded. The motion passed by a roll call vote of 6-0 with President Ramirez Holmes absent.

Resolution No. 19-47 Amendment to Appendix A, Footnotes to Salary Schedule 2.7

Item 5 -

Citizens Forum

There were no public comments.

Item 6 -

Minutes-Special Board Meeting of May 2, 2019 and Regular Board Meeting of May 15, 2019

Director Palmer moved that the minutes of the Special Board Meeting of May 2, 2019, and the minutes of the Regular Board Meeting of May 15, 2019, be approved, and Director Quigley seconded. The minutes were approved with a voice vote of 6-0, with President Ramirez Holmes absent.

Item 7 -

Consent Calendar

Director Quigley made a motion to approve items 7a through 7d and Director Smith McDonald seconded. The items were approved by a roll call vote of 6-0, with President Ramirez Holmes absent.

Resolution No. 19-48 Increase Existing Blanket Purchase Order for Tree Trimming Services

Resolution No. 19-49 Amendment to the Contract with GS Management Company for Property Management and Maintenance Services for the Zone 7 North Canyons Office

Resolution No. 19-50 Award of Emergency Contract for Specialized Mowing Services

Resolution No. 19-51 Out-of-State Travel to Attend Ozone Equipment Factory Acceptance Testing in Pennsylvania for the DVWTP Ozonation Project

Item 8 -

Staffing Update

Valerie Pryor, General Manager, announced that Shelisa Jackson joined Zone 7 on June 3, 2019, as a Human Resources Officer II reporting to the Assistant General Manager. Ms. Jackson was present in the audience and the Board and staff applauded her. Ms. Pryor also announced that Camden Mielcarek joined Zone 7 on May 20, 2019, as an Instrument Technician II reporting to the Facilities Maintenance Supervisor. The Board and staff applauded Mr. Mielcarek in absentia.

Item 9 -

Presentation of "Above and Beyond" Award to Zone 7 Water Agency by Employer Support of the Guard and Reserve

Ms. Pryor introduced Retired Colonel Phil Stage, who represented the Employer Support of the Guard and Reserve (ESGR). Colonel Stage presented Zone 7 with its prestigious "Above and Beyond Award" where the ESGR, a Department of Defense program, promotes cooperation and understanding between military reserve service members and their civilian employers. Colonel Stage stated that Zone 7 is one of only 40 employers in the state of California receiving the high honor this year. Assistant Engineer Andy Chamberlain, nominated Zone 7 for the Above and Beyond Award. Mr. Chamberlain said that he nominated Zone 7 because the agency supports him with an excellent military leave policy. Vice President Figuers said that by accepting this award, Zone 7 reaffirms its commitment to supporting the service members who continue this heritage of military service.

Item 10 -

Appointment of Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA) Board Representative and Alternate Board Representative

Mr. Osborn Solitei, Treasurer/Assistant General Manager - Finance, stated that at the April Board Meeting, the Board consented to join the Association of California Water Agencies/Joint Powers Insurance Authority (ACWA/JPIA). As a member of ACWA/JPIA, the Agency becomes a member of the ACWA/JPIA Board of Directors and is required to appoint a Director and an Alternate Director to the Board. Director Quigley stated that he would love to be considered for the Director position. Director Palmer nominated Director Quigley and Director Smith McDonald seconded. The motion was approved by a voice vote of 6-0, with Director Ramirez Holmes absent. Director Palmer nominated Director Gambs to be the Alternate Director and Director Smith McDonald seconded. Director Gambs was appointed Alternate Director by a voice vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 19-52 Appointing Board Member and Alternate Board Member to the Association of California Water Agencies Joint Powers Insurance Authority (ACWA/JPIA)

Item 11 -

Resolution of Support for Director Palmer to Serve on the ACWA Region 5 Board

Director Quigley moved that Director Palmer continue to serve on the ACWA Region 5 Board and Director Sanwong seconded. The motion to support Director Palmer continuing to serve on the Region 5 Board was approved by a voice vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 19-53 Resolution of Support

Item 12 -

Conservation Program Update/ Robyn Navarra, Water Conservation Coordinator, presented a summary of the Water Conservation Program and the Tri-Valley Water Task Force. She stated that every year the Task Force discusses and evaluates the current programs, and makes recommendations for future conservation efforts. She said the current rebate programs offered at Zone 7 are the Weather-Based Irrigation Controllers and the Water-Efficient Lawn Program. Ms. Navarra recommends that Zone 7 participate in two additional programs, the High-Efficiency Washer Rebate Program, and Garden in a Box. Director Quigley said he had not heard of Garden in a Box, but he liked the idea. He also said he would be curious if other water agencies participate in the program. Ms. Navarra responded that in Colorado they have been doing the program for about eight years and have saved over 1.3 billion gallons of water. Director Smith McDonald asked about the classes, and Ms. Navarra responded that the class would take an hour, with an additional hour of questions and answers. Director Quigley asked if the program would be monitored, and Ms. Navarra said that it would be, by both Zone 7 and its retailers. Director Quigley suggested that a box be given to the local high schools. Vice President Figuers asked about the cost of the program. Ms. Navarra said she wanted to start with 50 boxes, as she wanted to keep the cost within budget, but she would be looking into grant funding, and hopes to extend the program. Director Quigley asked if there would be a cost in the detailed demand study that is planned for the fall of 2019. Ms. Pryor responded that the item would be covered later in the meeting in Item 15. Vice President Figuers asked why the cost was estimated at $25,000, and Ms. Navarra responded that it included administrative costs, as well as the rebate costs. The Board supported the programs, and advised Ms. Navarra to proceed with implementation.

Item 13 -

Water Supply Operations Plan for 2019

Carol Mahoney provided an update on Zone 7's water supply. She said in January, Zone 7 had a 10% allocation, which is now currently at 70%, while in 2018; Zone 7 had a 35% allocation. She said there was not a lot of change in the overall costs in the two years. In 2018, we had more groundwater recharge; less of Lake Del Valle was available and less carryover from 2017. She said that when more water is available in the wetter years, it is actually somewhat costly because we need to store that water or use it in a different way. She said we are planning to send about 15,000 acre-feet down to Kern County for storage. We are also going to try to bank some water in our State Water Project (SWP) carryover. Ms. Mahoney stated that there are more costs affiliated with storing water with higher allocations and more water available for storage.

Director Gambs asked what the $8,000 in annual fees was for at Lake Del Valle, and Ms. Mahoney replied that it was administrative fees to the state.

Item 14 -

Proposed Changes to the FY 2019-20 Capital Budget

Mr. Chahal said that at the Finance Committee of June 3, 2019, Committee Members requested more information on the proposed new projects. He said that in Fund 120, there are a total of six projects. Four are new and two are scheduled changes. Those projects amount to an increase of $2.5M. For Fund 130, the proposed changes decrease the budget by $9.5M. For Fund 200, there is a decrease of $800,000 due to deferral of three projects. Similarly, Fund 210 also has a decrease of $500,000 due to deferral of some projects.

Item 15 -

Proposed Mid-Cycle Budget Amendment for FY 2019-20

Mr. Solitei presented the Proposed Mid-Cycle Budget Amendment for FY 2019-20. He stated staff presented a mid-cycle budget review to the Finance Committee on June 3, 2019, where the Committee recommended presenting the Amendment to the full Board. He went over the summary of proposed changes and the budget amendment summary, touching on revenue, expenses and reserves, and briefly spoke about each fund and their budgetary impacts, if any.

Director Palmer commented that the ACWA/JPIA issues refunds at the end of each year and our expenses would probably not be as much as anticipated. Director Quigley asked about the reimbursement from DSRSD in Fund 120 and if the cost estimate at $1M is our share or the total cost. Ms. Pryor responded that it is the total project cost and our share will be $500,000. Director Palmer moved that the Mid-Cycle Budget Amendment be approved and Director Quigley seconded it. The motion passed by a voice vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 19-54 Mid-Cycle Budget Amendment for FY 2019-20

Item 16 -

Independent Accountant's Report on Applying Agreed-Upon Procedures for the Agency in Regards to Procurement Card Transactions for the Calendar Year Ended December 31, 2018

Mr. Solitei stated that at the Finance Committee meeting on September 18, 2018, the Committee requested an audit of procurement card transactions. Maze & Associates performed an internal audit on procurement card transactions for the period of January 1, 2018 through December 31, 2018. Staff presented the report to the Finance Committee on April 30, 2019. Mr. Solitei briefly summarized their findings and stated that management agrees with their recommendations and that changes will be put in place. The report and findings were discussed at the Finance Committee meeting in April, and the Committee recommended the report be presented to the full board.

Item 17 -

Purchase Emergency Generators from Peterson Power Systems, Inc.

Colter Andersen, Production Manager, presented a report on the need for three new generators, as the current generators did not comply with California Air Resources Board requirements. Two that will provide power to the Silver Oaks and Kitty Hawk pump stations, and one will be used to power smaller pumps and SCADA systems at the various facilities. Director Gambs asked if PG&E would notify Zone 7 if and when they will shut off power to areas where we have treatment plants. Ms. Pryor stated that staff have been attending meetings with Alameda County Emergency Services and various water agencies where this has been discussed. She said it was an evolving field, and we may or may not get notice, but the idea is for us to be self-sustaining. Director Quigley said that water agencies were cautioned at recent ACWA meetings. Director Quigley asked whether the old generators could be sold, or if they needed to be donated. Ms. Pryor stated that we would have control of the funds if we trade them in. Vice President Figuers asked what type of fuel was used in the current generators. Mr. Andersen responded that all of the generators are fueled by diesel except one that is fueled by propane. Vice President Figuers stated that our current generators were suitable for the next couple of months, and they were worth a lot of money outside of California where other states do not have the Air Quality Control Board. There were no more questions or comments, and Director Gambs moved that the item be approved and Director Quigley seconded it. The motion was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 19-55 Replacing Emergency Portable Generator Equipment

Item 18 -

Committees: Water Resources Committee Meeting - May 13, 2019 - notes

a. Water Resources Committee Meeting - May 13, 2019 - notes

Director Palmer asked that the word "maintain" be changed to "manage" on the second paragraph on the last page. All Directors agreed to the change.

Item 19 -

Reports-Directors

a. Verbal comments by President

b. Written reports

c. Verbal reports

Director Palmer highly recommends other Directors and the public to peruse www.watereducation.org for some very good information. She added that she attended the ACWA Region 5 meeting, briefly shared the topics of discussion, but will report in writing at the next Board meeting.

Item 20 -

Items for Future Agenda-Directors

Director Smith McDonald suggested the Board be kept informed on the PG&E power shutdown situation.

Item 21 -

Staff Reports

a. General Manager's Report

b. Legislative Update

c. May Outreach Activities

d. Monthly Water Inventory and Water Budget Update

e. Verbal reports

Ms. Pryor reported that the Statewide Water Tax was dropped from the Budget that was passed by the Legislature, but they did establish a trust fund to help those communities with unsafe drinking water. Ms. Pryor mentioned that Zone 7 received the Distinguished Budget Presentation Award from the Government Finance Officers Association for the fifth consecutive budget year. Ms. Pryor added that the Annual Consumer Confidence Report is available on Zone 7's website and hard copies would be available in about a month. She stated that the State Water Project allocation increased from 70% to 75%.

Item 22 -

Adjournment

The meeting was adjourned at 8:37 p.m.