MINUTES OF THE BOARD OF DIRECTORS

ZONE 7

ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT

REGULAR MEETING

February 17, 2021

The following were present:

DIRECTORS: SANDY FIGUERS

DENNIS GAMBS

LAURENE GREEN

SARAH PALMER

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

RHETT ALZONA, PRINCIPAL ENGINEER

BRANDON WOODS, ASSOCIATE CIVIL ENGINEER

LIRA WALTER, ADMINISTRATIVE ASSISTANT

COUNSEL: REBECCA SMITH, DOWNEY BRAND

Item 1 - 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 Gov't Code section

54956.9(d) (1): (1) City and County of San Francisco v. County of Alameda (Contra

Costa County Superior Court Action No. MSN18-0928), (2) County of Butte v.

California Department of Water Resources (California Supreme Court No. S258574,

(3) State Water Contractors v. California Department of Fish & Wildlife (Fresno

County Superior Court, filed April 29, 2020), (4) Thomason v. Morrow (Alameda

County Superior Court No. 18918041)

c. Conference with Legal Counsel - Existing litigation pursuant to Gov't Code section

54956.9(d) (2): Government Claims Act claim (Von Beckman)

d. Conference with Legal Counsel - Potential initiation of litigation pursuant to Gov't

Code section 54956.9(d) (4): 2 cases

e. Conference with Legal Counsel - Anticipated litigation pursuant to Gov't Code

section 54956.9(d) (2): 2 cases

The Board went into Closed Session at 6:00 p.m. and came out at 6:32 p.m.

Item 2 - Open Session and Report Out of Closed Session

President Sanwong stated that there were no reportable actions taken in Closed Session.

Item 3 -

3. Call Meeting to Order

President Sanwong called the meeting to order at 7:00 p.m. Roll call was taken, and Director Ramirez Holmes was absent.

Item 4 -

4. Citizens Forum

President Sanwong stated that two emails were received as public comment:

Pleasanton resident Bruce Daggy asked if Zone 7 evaluated the opportunity to place floating solar arrays on the Chain of Lakes.

Livermore resident Dave Lunn asked about Zone 7 water rights and the Arroyo Del Valle.

Item 5 -

5. Minutes

Director Palmer noted that the word "felt" was misspelled. Director Smith McDonald moved to approve Item 5a with the correction and Director Palmer seconded the motion. Item 5a was approved by a voice vote of 6-0, with Director Ramirez Holmes absent.

Item 6 -

6. Consent Calendar

Director Green requested to pull Item 6a. Director Palmer made a motion to approve Item 6b and Director Smith McDonald seconded the motion. Item 6b was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Director Green felt that Item 6a was a great initiative to find leaks and an opportunity for the public to save some money, so she asked if staff could elaborate on the item. Carol Mahoney, Integrated Water Resources Manager, stated that Zone 7 has participated in the program with the U.S. Environmental Protection Agency (EPA) WaterSense for several years and it provides an opportunity for the agency to interact with the public and the schools to educate about how leaks can impact the overall water supply. Director Palmer made a motion to approve Item 6a and Director Gambs seconded the motion. Item 6a was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 21-07 Declaration of March 15-21, 2021, as Fix a Leak Week

(Item No. 6a)

Resolution No. 21-05 Amended Resolution No. 21-05 - Establishment of an

(as Amended) IRS Section 115 Trust for Funding Pension Liabilities (Item 6b)

Item 7 -

7. Award of Engineering Services Contract for the Valley Booster Pump Station Project Presentation

Brandon Woods, Associate Civil Engineer, gave a presentation on the Engineering Services for the Valley Pump Station Project. He provided details of the project's purpose and benefit, scope of work, project schedule, cost breakdown and project funding and the next steps.

The pump station will allow the agency to move water more efficiently from the west end of the service area to the east end demand. Well production takes place in the west end while most of the demand operates off the treatment plant reservoir elevations in the east end, roughly 300 feet higher in elevation than the wellfields. Without a pump station, the wells must pump against the elevation difference. The benefits include wells not having to pump against the large elevation difference, which enables them to produce more water. This increased production and water mobility will increase drought tolerance. It also significantly reduces wear and tear on the wells and their ancillary equipment. These factors experience greater failure rates when having to pump against a high elevation difference. Mr. Woods shared a map of the agency's transmission system, which displayed the wells and service turnouts. He indicated where the pump station would come in and allow the wellfields to pump against a much lower pressure. He went over the engineering services and scope of work which included planning/coordination, basis of design, full design plans & specifications, permitting assistance, and bid period assistance information. The project would begin next month in preparation to go out to bid next year. It would be brought back to the Board in May of 2022 for the construction phase contracts award and the construction of the project would be completed during summer of 2023. Funding is available in Fund 120, and the current project estimate is $100,000 over project budget. The project costs will be further refined during the design process and once the construction bids were received. Budget adjustments would be requested based on actual bids when the Board considers the award of construction contract. Staff issued a master Request for Proposal (RFP) for general engineering services in 2019; a list of qualified firms was generated from that RFP and Staff chose three firms from the qualified list and issued an informal RFP for engineering services, two proposals were received; Staff selected HDR Engineering, Inc. as most and best qualified to perform engineering services work. He then welcomed questions from the Board.

President Sanwong asked if Zone 7 currently owns the parcel of land, if there would be a future well on the site, and when the well would be brought online. She also inquired about operations costs and whether it would affect energy usage. Mr. Woods confirmed that the agency owns the land. The site was originally purchased for the Busch Valley Well, so planning for the future well must be considered. Valerie Pryor, General Manager, added that wells would not be actively constructed until further PFAS investigation was completed. Rhett Alzona, Principal Engineer, said the Busch Valley Well was part of the agency's Capital Improvement Program (CIP) and estimated to be $12 million in 2015. Staff is currently looking at where it can be scheduled. Mr. Woods stated that there would be an increase in energy consumption due to the addition of pumps and the wells consume the same amount of energy when they are running. The difference is that the agency would be getting a larger production out of the wells for a slight increase in energy usage on the pump station.

Director Gambs asked under what operating circumstances would require use of the pump station. Mr. Woods explained when one or both surface water treatment plants are offline and underproducing. The pump station would fill the clear wells at Del Valle and, if needed, Patterson Pass, which would provide water to the east end turnouts.

Director Palmer stated that the project would provide more water resiliency. She asked if there would be a cost savings in the replacement of infrastructure since there would be less wear and tear on the wells. Mr. Woods said that is correct.

Director Green asked about the 10% contingency and, historically, how well that figure operates in reality. Mr. Woods stated that it was an industry standard and they try to keep change orders under that percentage. It is rare to go above it so 10% should be achievable.

President Sanwong asked if the agency has only one other pump system in its transmission system. Mr. Woods said there are two, the Kitty Hawk and Silver Oaks pump stations. President Sanwong referred to past discussions about generators for these pump stations for backup emergency systems, as she thought it was important to be prepared with power generators and thinking about these pump stations moving water in the system. Mr. Woods recalled the discussion and explained that emergency power and how much would be needed are going to be dependent on the pump sizing in the design stage.

President Sanwong welcomed comments and questions from the public. None were received. Director Gambs made a motion to approve Item 7 and Director Palmer seconded the motion. Item 7 was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 21-09 Award of Engineering Services Contract for the Valley Booster Pump Station Project (Item No. 7)

Item 8 -

8. Award of Contracts for Construction of the North Canyons HVAC Replacement Project Presentation

Mr. Alzona gave a presentation on the North Canyons HVAC System Replacement Project. He provided background information, project scope, expected benefits, energy efficiency, cost breakdown, and project schedule.

The North Canyons administration building is a necessary facility for providing Zone 7 with effective organization, administration, and governance. The HVAC system was identified as near the end of its useful life in the Asset Management Program (AMP). The project scope is to remove and replace the four AC units, the boiler and associated piping. 28 variable air volume controllers throughout the building must also be replaced and are located under the recessed ceiling inside the building. These units control the air flow, so significant improvement is to be expected. The control system must also be changed since it is currently outdated and no longer supported. Additional miscellaneous work associated with the project may take place because of the replacement of old AC units such as roof and interior repairs related to the HVAC systems, exhaust fan replacement, duct modifications, and other electrical work. He shared a map of the AC units throughout the building. Benefits include an improved system, reliability with the new units and a reduction of untimely and costly repairs. The units have caused more maintenance and have had more breakdowns as they aged. The new HVAC system will be more energy efficient with updated control systems and will provide improved air quality with a higher-level particle filtration. The new units will have wireless thermostats, which will be more responsive to the temperature conditions to adjust the controls for the area. There will be greater dual control for heating or cooling from the VAVs, and a new building automation system, which can be programmed for certain conditions throughout the day. He explained the Minimum Efficiency Reporting Value (MERV) rating chart and a barometer to assess filtration capabilities. The current HVAC system is rated as a MERV 8, which is typical for standard buildings, however, the new HVAC system is approximately a MERV 13 for more superior buildings. To be rated a MERV 8 means 70% of E3 particles are filtered out (three microns to 10 microns particles) and about 20% of E2 particles (one to three micron particles), but it does not remove the small particles from E1 (0.3 to one micron particles). To be rated MERV 13, a filter must successfully remove at least 90% of the E3 particles, 85% of the E2 particles and it will remove some E1 particles. Unfortunately, it cannot achieve removal of viruses like COVID, since these are about 0.004 to 0.1 micron. Mr. Alzona then provided the project cost breakdown with total project cost estimated close to $2 million. He then went over the project schedule with a notice to proceed in March 2021 and a review of submittals in June of 2021. Once the submittals are approved, the equipment will be manufactured, so construction is expected to be sometime in the fall. This will include a one-month disruption inside the building when the contractors will continuously work on the VAVs, and about a two-week startup and commissioning process for substantial completion around December, and final completion around January 2022. Mr. Alzona then presented two resolutions. The award of the construction contract, staff recommended the Board authorize the award of construction contract to the lowest responsive and responsible bidder, Matrix HG, Inc. in the amount of $1,129,682, and further recommends that the Board authorize the General Manager to negotiate and execute change orders as and when needed in the amount not to exceed $112,968, which is the 10% contingency. Likewise, the agency will need engineering services during construction. Lee and Ro provided the HVAC system design for the project. Staff recommended that the Board authorize the General Manager to execute an amendment for an amount not to exceed $231,000, which includes a 10% contingency for the engineering services during construction. Mr. Alzona then welcomed questions from the Board.

Director Palmer expressed the importance of having a better HVAC system in the building to ensure staff are working in a healthy environment especially during the fire season. Director Green concurred. Mr. Alzona re-emphasized that MERV 13 will remove smoke.

President Sanwong then asked for comments from the public. None were received.

Director Palmer moved to approve Resolution No. 21-10, Award of Construction Contract for the North Canyons HVAC System Replacement Project, and Director Green seconded the motion. It was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Director Palmer moved to approve Resolution No. 21-11, Amendment to Lee & Ro Contract for the North Canyons HVAC Replacement Project to include Engineering Support and Construction Management Services, and Director Green seconded the motion. It was approved by a roll call vote of 6-0, with Director Ramirez Holmes absent.

Resolution No. 21-10 Award of Construction Contract for the North Canyons HVAC System Replacement Project (Item No. 8)

Resolution No. 21-11 Amendment to Lee & Ro Contract for the North Canyons HVAC Replacement Project to Include Engineering Support and Construction Management Services (Item No. 8)

Item 9 -

9. Reports - Directors

President Sanwong took the time to mention that NASA's Mars Rover Perseverance would be landing on Mars for the purpose of extracting samples from the crater to try to understand the history of water and life on Mars. She thought it was very intriguing and related it to Earth and how the agency is always seeking to diversify its water portfolio.

Director Palmer submitted a written report that outlined information about several meetings she attended. She also shared information about the EPA PFAS Innovative Treatment Team (PITT) webinar she attended earlier that day, which went over PFAS destruction technologies, potential byproducts and how the costs are still unknown. Jarnail Chahal, Engineering Manager, also attended the webinar and added that these technologies were still in the research stages, but he was excited to learn about them.

Director Palmer would also be attending the upcoming Department of Consumer Affairs (DCA) Board Meeting and the U.S. Securities and Exchange Commission (SEC) Meeting.

Director Green stated that she also attended the EPA PFAS PITT webinar, and was happy to see the work and advancements made, however, she was concerned that there were currently no attempts at working on the costs. A lot of the technologies seem very energy-intensive, which usually translates to dollars.

Item 10 -

10. Items for Future Agenda - Directors

Director Gambs said he would like to make public announcements about reports like Item 6a Fix a Leak Week. President Sanwong stated that pulling items like 6a provide a chance for them to standalone. In addition to potentially including the item in the regularly scheduled communications presentation to learn more about what was done.

Director Smith McDonald requested to have a discussion about Zone 7's energy landscape. She felt that it would be good for the community to understand the energy that it takes to move water, the new challenges around energy usage and costs. President Sanwong concurred.

Item 11 -

11. Water Resources Committee Meeting Notes of January 11, 2021

Item 12 -

12. Staff Reports (Information items. No action will be taken.)

Ms. Pryor highlighted two awards in the General Manager's Report. Zone 7 had once again been awarded the California Society of Municipal Finance Officers Operating Budget Excellence Award for the fiscal year 2018-19 operating budget, and this is the fifth consecutive operating budget award that the agency has won. This was very prestigious and highly peer reviewed. It was based on a governmental body publishing a budget policy document and operations guide of financial planning and a communication device. It also highlighted the agency's transparency to the community about its finances. Ms. Pryor thanked the Board for their support in these areas and acknowledged Osborn Solitei, Treasurer/Assistant General Manager, Finance, and his entire finance team for putting the budget together.

The Flood Ready Freddy videos won the 2020 International MarCom Gold Award, which was mentioned verbally at the last Board Meeting. The award honors excellence in marketing and communication and creativity. Ms. Pryor recognized Alexandra Bradley, Communications Specialist; Elke Rank, Associate Water Resources Planner, and Andrew Reyna, Water Resources Technician II.

The Board applauded Staff for both awards.

Item 20 -

13. Adjournment

President Sanwong reminded the Board of the upcoming meetings and adjourned the meeting at 7:54 p.m.