Zone 7 Meeting - June 17, 2026

Director Benson made a motion to approve the minutes of the special Board meeting of May 12, 2026. The motion was seconded by Director Gambs and approved by a voice vote of 7-0.

Director Brown moved to approve the minutes of the regular Board meeting held on April 15, 2026. The motion was seconded by Director Palmer and approved by a voice vote of 7-0.

Item 8 -

8. Consent Calendar

Item 8d was removed from the Consent Calendar and continued to a future meeting.

Director Benson moved to approve Consent Calendar Items 8a through 8c and 8e through 8j, seconded by Director Green. The motion was approved by a roll-call vote of 7-0.

Item 9 -

9. Commendation for Director Dawn Benson >

The Board considered a Resolution commending Director Dawn Benson for her service to Zone 7 Water Agency. Board members recognized Director Benson's leadership, professionalism, service on the Finance and Legislative Committees, commitment to fiscal stewardship, regional water knowledge, and collaborative approach to governance. Director Benson thanked the Board, Agency staff, and her family for their support and expressed her appreciation for the opportunity to serve the community, highlighting the dedication of Zone 7 staff, the Agency's accomplishments during her tenure, and the importance of continued public service and regional collaboration. By motion of Director Figuers, seconded by President Narum, the Board adopted Resolution No. 26-49 commending Director Dawn Benson for her service by a unanimous roll call vote.

Item 10 -

10. Commendation for Director Catherine Brown >

The Board considered a Resolution commending Director Catherine Brown for her service to Zone 7 Water Agency. Following comments from Board members recognizing Director Brown's professionalism, dedication to public service, participation on the Finance and Legislative Committees, and contributions to the Agency during her tenure, Director Brown expressed her appreciation for the opportunity to serve and thanked the Board and staff for their support and collaboration. By motion of Director Green, seconded by Director Figuers, the Board adopted Resolution No. 26-50 commending Director Catherine Brown for her service by a unanimous roll call vote.

Item 11 -

11. Commendation for Director Dennis Gambs >

The Board considered a Resolution commending Director Dennis Gambs for his many years of service to Zone 7 Water Agency, both as an employee and as an elected Director. Board members recognized Director Gambs' extensive institutional knowledge, leadership, technical expertise, commitment to water supply reliability, and significant contributions to the Agency, including his advocacy for the Chain of Lakes Conveyance Project. Director Gambs thanked the Board, staff, and community for the opportunity to serve and reflected on the importance of public service and the Agency's continued commitment to long-term water reliability. By motion of Director Palmer, seconded by Director Green, the Board adopted Resolution No. 26 51 commending Director Dennis Gambs for his service by a unanimous roll call vote.

Following the recognition of the outgoing Directors, the Board recessed briefly to take a commemorative photograph.

Item 12 -

12. Authorization to Apply for the Bureau of Reclamation's WaterSMART Applied Science Grant Along With Lawrence Livermore National Laboratory as Lead Applicant >

Jory Lerback, Postdoctoral Researcher at Lawrence Livermore National Lab (LLNL), presented a proposed collaborative research project with Zone 7 to support an application for the Bureau of Reclamation's WaterSMART Applied Science Grant. The project would build upon previous groundwater recharge research conducted jointly with Zone 7 and would focus on improving understanding of groundwater flow, recharge, and PFAS transport within the Livermore Valley Groundwater Basin. The proposed study includes evaluating the effectiveness of a potential groundwater flow barrier near the Pleasanton Fault area, refining groundwater recharge estimates using isotope tracer techniques, and enhancing Zone 7's groundwater decision support tool with PFAS transport functionality. Ms. Lerback explained the grant funding structure, matching fund requirements, anticipated project timeline, and expected deliverables, including technical reports, updated groundwater model inputs, and management tools to support future operational decisions.

Directors discussed the proposed research, including the project's potential to improve understanding of groundwater flow paths, PFAS migration, groundwater recharge, and the characteristics of the suspected groundwater flow barrier. Questions were raised regarding the project's relationship to previous PFAS studies, the scope of the proposed pumping test, monitoring well locations, anticipated data collection, modeling assumptions, grant funding, and the overall benefits to Zone 7. Ms. Lerback explained that the study is intended to provide information to support groundwater management decisions, refine existing groundwater models, and assist in implementation of the Agency's PFAS management strategy while advancing Strategic Plan objectives related to groundwater sustainability and basin management. Directors expressed support for the collaboration and noted the value of leveraging LLNL's scientific expertise to improve the Agency's understanding of groundwater conditions and inform future water supply management.

On motion of Director Palmer, seconded by Director Gambs, the Board unanimously adopted the Resolution authorizing the General Manager to apply jointly with Lawrence Livermore National Laboratory for the Bureau of Reclamation WaterSMART Applied Science Grant.

Item 13 -

13. Public Hearing for the Recruitment and Retention: AB 2561 >

Shelisa Jackson, Human Resources Manager, presented the annual recruitment and retention report required by Assembly Bill 2561. She explained that the legislation requires public agencies to report annually on staffing vacancies and recruitment and retention efforts prior to budget adoption. Ms. Jackson reported that, as of June 1, 2026, no represented bargaining unit met or exceeded the 20 percent vacancy threshold requiring additional reporting under the legislation. Ms. Jackson reviewed current vacancy rates by bargaining unit, summarized ongoing recruitment and retention initiatives, including internship programs, job fairs, competitive compensation, alternate work schedule discussions, tuition reimbursement, and employee engagement activities, and noted that all labor organizations had been notified of the public hearing and elected not to make a presentation.

Directors discussed current vacancy rates, particularly within the Building Trades bargaining unit, funding of vacant positions, employee engagement efforts, and the Agency's overall recruitment and retention success. Ms. Jackson noted that recent retirements accounted for several Building Trades vacancies, recruitment efforts are underway to fill those positions, and the employee engagement program continues to be well supported. Directors commented favorably on the Agency's low vacancy rates compared to other public agencies and the positive impact of employee engagement initiatives on morale.

The Board received the report; no formal action was taken.

Item 14 -

14. Proposed Two-Year Budget for Fiscal Years 2026-27 and 2027-28 >

Osborn Solitei, Treasurer/Assistant General - Finance, presented the proposed Fiscal Years 2026-27 and 2027-28 Operating and Capital Budget. He summarized the budget development process, noting that the only change since the May 12, 2026 budget workshop was a reduction in workers' compensation costs resulting from updated county program rates. The proposed budget includes assumed treated water rate increases, grant funding for capital projects, continued funding of the State Water Project property tax override at existing levels, reserve funding consistent with Board policy, and operating assumptions for personnel, utilities, chemicals, and capital improvements. Mr. Solitei also highlighted the Agency's grant funding successes and reviewed anticipated revenues, expenditures, debt service, reserve funding, and capital investments for the two-year budget period.

Directors discussed several budget assumptions, including use of reserves, workers' compensation costs, inflationary impacts on chemical prices, estimated costs for water treatment resin replacement, the property tax override, future bond refinancing opportunities, and the Agency's grant program. Directors expressed appreciation for staff's successful grant efforts and the thorough budget preparation.

On motion of Director Benson, seconded by Director Green, the Board unanimously adopted the Resolution approving the Fiscal Years 2026-27 and 2027-28 Operating and Capital Budget.

Item 15 -

15. Authorize the Long-Term Water Transfer Agreement with Westside 5 Water District >

Kevin Padway, Associate Water Resources Planner, presented a proposed non-binding term sheet for a 10-year long-term water transfer agreement with the West Side districts. He explained that the agreement would provide Zone 7 with an additional long-term water management tool to help manage surplus State Water Project supplies during wet years while maintaining flexibility to meet the Agency's future water supply needs. The proposed agreement establishes a framework for transferring surplus water under specified State Water Project allocation conditions, outlines pricing, transfer volumes, and notification procedures, and provides mechanisms for renegotiation, environmental review, and regulatory compliance. Mr. Padway reviewed the benefits and potential risks of the agreement, including revenue generation, operational flexibility, fixed pricing, and the ability to adapt the agreement over time.

Directors discussed the proposed agreement, including the minimum water transfer commitments, opportunities to renegotiate transfer volumes and pricing, revenue generated from potential transfers, reserve funding, CEQA requirements for multi-year transfer agreements, and the relationship between future water sales and dry-year water purchases. Mr. Padway explained that the agreement is intended primarily as a water supply management tool rather than a revenue-generating program and emphasized that the proposed term sheet provides flexibility through periodic pricing negotiations and the ability to renegotiate transfer volumes during the term of the agreement.

On motion of Director Gambs, seconded by Director Benson, the Board adopted the Resolution authorizing the General Manager to negotiate, execute, and amend a long-term water transfer agreement with the West Side districts substantially consistent with the proposed term sheet, undertake associated agreements, ensure regulatory compliance, and perform other actions necessary to implement the transfer. The motion carried by a roll call vote of 7-0.

Item 16 -

16. A Resolution Authorizing Water Transfers for Water Year 2026 and Delegating Authority for Future Annual Water Transfers >

Kevin Padway presented the proposed Resolution authorizing water transfers for Water Year 2026 and delegating authority to the General Manager for future annual one-year water transfers. Mr. Padway reviewed current 2026 water supply conditions, projected demands, groundwater storage, carryover supplies, and the proposed transfer of up to 8,000 acre-feet of surplus water during Water Year 2026. Mr. Padway explained that annual water transfers provide an additional water supply management tool to reduce spill risk, improve operational flexibility, and manage surplus supplies during wet years, with revenue generation serving as a secondary benefit. Mr. Padway also proposed delegating authority to the General Manager to execute future one-year transfer agreements of up to 12,000 acre-feet beginning in Water Year 2027 to improve the Agency's ability to respond quickly to changing water supply conditions.

Directors discussed the proposed delegation of authority for future annual water transfers, including the need for operational flexibility, appropriate parameters for exercising delegated authority, and the balance between timely decision-making and Board oversight. While Directors supported the proposed 2026 water transfer authority, several expressed a preference for establishing additional policy guidance before authorizing future annual transfers without further Board approval. Staff agreed to return with a proposed framework for Board consideration prior to implementing any ongoing delegation of authority.

On motion of Director Palmer, seconded by Director Green, the Board adopted the Resolution authorizing water transfers for Water Year 2026, as amended to remove the delegation of authority for future annual water transfers beginning in Water Year 2027. The motion was approved by a roll call vote of 7-0.

On motion of Director Palmer, seconded by Director Green, the Board directed staff to return with a proposed framework and parameters governing delegated authority for future annual water transfers beginning in Water Year 2027. The motion was approved by a roll call vote of 7-0.

Item 17 -

17. Adopt Updates to the Wastewater Management Plan for the Alameda Creek Watershed and the Nutrient Management Plan for the Livermore Valley Groundwater Basin >

Michelle Parent, Water Resources Technician, presented proposed updates to the 1982 Wastewater Management Plan for the Alameda Creek Watershed and the 2015 Nutrient Management Plan for the Livermore Valley Groundwater Basin. She reviewed the Agency's onsite wastewater treatment system (septic system) oversight program, summarized existing septic system regulations, and described recommended policy updates intended to maintain groundwater quality while addressing inconsistencies with current state housing legislation and county regulations. The proposed revisions include replacing the minimum five-acre lot size requirement with proportional nitrogen loading limits for smaller parcels, clarifying variance language, updating references to current state onsite wastewater treatment system policies, continuing groundwater nitrate monitoring, and requiring Board approval for wastewater treatment plants not operated by Livermore-Amador Valley Water Management Agency member agencies. Ms. Parent explained that the proposed changes would preserve existing nitrogen loading standards while providing greater consistency with current land use regulations.

Directors discussed the proposed policy revisions, including application of the proportional nitrogen loading requirements to existing lots of record, the need for improved mapping of septic system locations, the relationship between the proposed changes and commercial septic system approvals, and consistency with recent state housing legislation. Ken Minn, Water Resources Manager, explained that the proposal does not modify the existing commercial septic system approval process but instead removes inconsistencies between Zone 7 policies and county planning requirements while maintaining the Agency's groundwater protection standards.

On a motion of Director Green, seconded by Director Benson, the Board unanimously adopted the Resolution approving updates to the Wastewater Management Plan for the Alameda Creek Watershed and the Nutrient Management Plan for the Livermore Valley Groundwater Basin with a roll call vote of 7-0.

Item 18 -

18. Committees

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

Item 19 -

19. Reports - Directors

Director Palmer reported on recent activities involving the Delta Conveyance Design and Construction Authority, noting discussions regarding differing interpretations of information presented in technical reports. She also reported on the biennial board seat rotation with the Alameda County Water District related to the Partnership for the California Delta, and provided updates on participation in workgroups addressing statewide water policy priorities and implementation of federal lead and copper regulations, including review of correspondence supporting alignment between state requirements and the United States Environmental Protection Agency Lead and Copper Rule.

President Narum reported on the recent Dublin San Ramon Services District/Zone 7 Liaison Committee meeting, noting discussions regarding the Chain of Lakes Conveyance System project and an update from the District on Phase 2 of its purified water program. She also reported on attending the Livermore State of the City luncheon, where updates were provided on the Livermore community and current City initiatives.

Item 20 -

20. Items for Future Agenda

There were no items for a future agenda.

Item 21 -

21. Staff Reports

Valerie Pryor reported that the California Department of Water Resources will conduct its annual seasonal maintenance from June 27 through July 1. She advised that, during the maintenance period, Zone 7 is coordinating with its retail water agencies and encouraging customers to voluntarily reduce outdoor water use to help protect water supplies. Ms. Pryor emphasized that the request is temporary and related to scheduled maintenance rather than a long-term water supply reliability issue.

Item 22 -

22. Adjournment

President Narum adjourned the meeting at 10:38 p.m.

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Zone 7 Meeting - June 17, 2026

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