Zone 7 Meeting - December 18, 2019

Open Session and Pledge of Allegiance

Report Out ot Closed Session

Citizens Forum

Minutes

Consent Calendar

Contract for PFAS Treatment Feasibility Study

Independent Auditor's Report and CAFR for Fiscal Year Ended June 30, 2019

Presentation of the 2019 Special District Leadership Foundation Transparency Certificate of Excellence Awarded to the Agency

Award of Contract for the Mocho Groundwater Demineralization Plant (MGDP) Concentrate Pipeline Batch Cleaning Project

Committees

Temporary Adjournment/Continuance of Zone 7 Water Agency Meeting

Call Livermore Valley Water Financing Authority Regular Meeting to Order

Roll Call of JPA Board

Citizens Forum

Livermore Valley Water Financing Authority, Water Revenue Bonds, 2018 Series for theYear Ended June 30, 2019 Update

Adjournment of Livermore Valley Water Financing Authority Regular Meeting

Call Zone 7 Water Agency Meeting to Order

Reports-Directors

Items for Future Agenda - Directors

Staff Reports-Information items-No action will be taken

Adjournment

Upcoming Board Schedule-All meeting locations are in the Boardroom at 100 North Canyons Parkway, Livermore, unless otherwise noted


MINUTES OF THE BOARD OF DIRECTORS

ZONE 7

ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT

REGULAR MEETING

December 18, 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

JARNAIL CHAHAL, ENGINEERING MANAGER

CAROL MAHONEY, INTEGRATED WATER RESOURCES MANAGER

GURPAL DEOL, WATER QUALITY MANAGER

RHETT ALZONA, PRINCIPAL ENGINEER

JOE SETO, PRINCIPAL ENGINEER

STEVEN ELLIS, ASSOCIATE ENGINEER

EMILY MOSHIER, ASSOCIATE ENGINEER

JEFF TANG, ASSOCIATE ENGINEER

TERI YASUDA, ACCOUNTING MANAGER

DONNA FABIAN, EXECUTIVE ASSISTANT TO THE GENERAL MANAGER

ALEXANDRA BRADLEY, COMMUNICATION SPECIALIST

COUNSEL: DAVID ALADJEM, DOWNEY BRAND

Item 1 - Call Meeting to Order

The meeting was called 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/Osborn Solitei

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 initiation of litigation pursuant to Gov't Code section 54956.9(d) (4): 2 cases

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

Open Session and Pledge of Allegiance

President Figuers called the meeting back into session at 7:00 p.m. and led the pledge of allegiance.

Report Out ot Closed Session

President Figuers stated that there was nothing to report.

Citizens Forum

There was no public comment.

Minutes

Director Quigley made a motion to approve the minutes of the Regular Board Meeting of November 20, 2019, and Director Palmer seconded it. The minutes were approved by a voice vote of 6-0 with Director Ramirez Holmes absent.

Consent Calendar

Director Palmer requested that Item 7b be pulled as she had some questions. Director Quigley moved that Items 7a, 7c, 7d and 7e be approved and Director Smith McDonald seconded it. Items 7a, 7c, 7d and 7e were approved by a roll call vote of 6-0 with Director Ramirez Holmes absent.

Resolution No. 19-94 Annual Report on Collection and Use of Development Fees (Item No. 7a)

Resolution No. 19-96 2019 Sites Reservoir Project Agreement - Extension (Item No. 7c)

Resolution No. 19-97 Award of Contract for Strategic Communications and Outreach Support Services (Item No. 7d)

Resolution No. 19-98 Tri-Valley Potable Reuse Collaborative Efforts - Task Order (Item No. 7e)

Director Palmer asked if the United States Geological Survey (USGS) streamflow gauges fall under Zone 7's oversight, and if the California Irrigation Management Information System (CIMIS) rainfall gauges are included in the number of gauges that Zone 7 has oversight. Jeff Tang, Associate Engineer, responded that Zone 7 does not have any oversight over USGS gauges and that the CIMIS station is monitored only for Zone 7 purposes.

Director Palmer moved that Item No. 7b be approved and Director Gambs seconded it. Item No. 7b was approved by a roll call vote of 6-0 with Director Ramirez Holmes absent.

Resolution No. 19-95 Contract Award for Hydrologic Data Acquisition and Management in Eastern Alameda County (Item No. 7b)

Contract for PFAS Treatment Feasibility Study

Emily Moshier, Associate Engineer, stated that California has begun the process of regulatory standards for the two most common PFAS compounds. Ms. Moshier added that PFAS was detected in 8 out of 10 production wells so Zone 7 is limiting use of those wells, blending the water with other sources, and treating the water with reverse osmosis at the Mocho Groundwater Demineralization Plant. Ms. Moshier said that staff anticipate more stringent regulations which may necessitate treatment at the affected wells. Staff are requesting authorization for the General Manager to negotiate and execute a contract up to $261,000 with Carollo Engineers, or another qualified firm, to perform a PFAS Treatment Feasibility Study.

After a brief discussion on treatment possibilities, Director Palmer moved that the item be approved and Director Quigley seconded it. Item No. 8 was approved by a roll call vote of 6-0 with Director Ramirez Holmes absent.

Resolution No. 19-99 Contract for PFAS Treatment Feasibility Study (Item No. 8)

Independent Auditor's Report and CAFR for Fiscal Year Ended June 30, 2019

Osborn Solitei, Treasurer/Assistant General Manager - Finance, presented the Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended June 30, 2019.

Mr. Solitei stated that the purpose of the audit was to ensure compliance with accounting principles and financial reporting requirements and to assure that the financial statements are free of material misstatements. In addition, the audit tested records to make sure they support the financial statements of the Agency. Mr. Solitei stated that the audit was performed by David Alvey of Maze & Associates, who was in the audience. Mr. Solitei briefly went over the agency's assets, liabilities, and the net position highlights for the fiscal year ended June 30, 2019.

Mr. Alvey addressed the Board explaining that his job is to audit the financials to make sure they are free from material misstatements and present the Independent Auditor's Report. Mr. Alvey stated that at the beginning of the audit year, his entire staff meets to come up with an audit plan, they look at what areas are most risky at Zone 7, and develop a plan to identify and mitigate those risks. During the audit they tested cash and investments, disbursements, debt, and capital asset. Their job is to make sure that the financials are presented fairly and that the internal control environment at Zone 7 is working and is maintained to reduce the risk of error or fraud. Mr. Alvey said that they render an opinion which is on page one of the CAFR. It is an "unmodified" or "clean" audit opinion, which is the highest level of assurance a CPA firm can give. Mr. Alvey also presented the Memorandum on Internal Control and Required Communications or the Independent Auditor's Report, stating he did not encounter any difficulties in performing the audit and found no material misstatements, no significant misstatements and no disagreement with management. There were no questions from the Board or the public. Director Quigley moved that the item be approved and Director Palmer seconded the motion. The item passed by a voice vote of 6-0 with Director Ramirez Holmes absent.

Resolution No. 19-100 Independent Auditor's Report and Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2019 (Item No. 9)

Presentation of the 2019 Special District Leadership Foundation Transparency Certificate of Excellence Awarded to the Agency

Colleen Haley, Bay Area Field Representative from the California Special District Association, presented a District Transparency Certificate of Excellence to the Board. The certificate is in recognition of the District's completion of all transparency program requirements designed to promote transparency in its operations and governance to the public and other stakeholders. The three main subject areas for the program are basic transparency requirements, website requirements, and outreach requirements. Ms. Haley thanked the Board for being members of the California Special Districts Association (CSDA) and its local Alameda County Chapter. Ms. Haley presented the award to President Figuers and a photo was taken of the presentation.

Award of Contract for the Mocho Groundwater Demineralization Plant (MGDP) Concentrate Pipeline Batch Cleaning Project

Steven Ellis, Associate Engineer, stated that the MGDP is required for the Salt Management Plan and to improve water quality. Over the last several years, scale has built up in the concentrate discharge pipeline reducing the available flow through the pipeline and reducing the output of the plant. This project will remove scale so that the plant can become fully operational again.

Mr. Ellis said that Zone 7 advertised for bids for the project in November 2019 with a bid opening date of December 4, receiving 3 bids. Garney Pacific, Inc. was determined to be the lowest responsive and responsible bidder. The initial budget for this project was $1,210,000 but due to bids coming in higher than expected, staff are also requesting an additional $1,232,900 for a total project cost of $2,442,900. The engineers estimate was based on information supplied to Zone 7 by the cleaning contractors but when they attended the pre-bid meeting they were concerned about the level of risk and the level of effort required to achieve the performance specifications of 95% scale removal. Staff is recommending that the Board approve the plans and specifications for this project, appropriate an additional $1,232,900 for a total project budget of $2,442,900. Staff also recommends the Board authorize the General Manager to award, negotiate and execute the contract with Garney Pacific, Inc. in an amount not to exceed $1,969,000, and to negotiate and execute change orders, when needed, in an amount not to exceed $196,900.

Director Palmer moved that the item be approved and Director Quigley seconded it. Item No. 11 was approved by a roll call vote of 6-0 with Director Ramirez Holmes absent.

Resolution No. 19-101 Award of Construction Contract for the MGDP Concentrate Pipeline Batch Cleaning Project (Project No. 283-19) (Item No. 11)

Committees

a. Finance Committee Meeting - December 10, 2019 - notes

Temporary Adjournment/Continuance of Zone 7 Water Agency Meeting

The Zone 7 Water Agency meeting was temporarily adjourned at 7:46 p.m.

Items 14-18

[See "Minutes of the Board of Directors, Livermore Valley Water Financing Authority, Regular Meeting, December 18, 2019"]

Call Livermore Valley Water Financing Authority Regular Meeting to Order

The Zone 7 Water Agency Regular Board Meeting was called to order at 7:50 p.m.

Reports-Directors

a. Verbal comments by President

b. Written Reports

c. Verbal reports

Items for Future Agenda - Directors

There was none.

Staff Reports-Information items-No action will be taken

a. General Manager's Report

b. November Outreach Activities

c. Monthly Water Inventory and Water Budget Update

d. Verbal reports

Adjournment

The meeting was adjourned at 8:04 p.m.