OPEN SESSION/PLEDGE OF ALLEGIANCE

REPORT OUT OF CLOSED SESSION

CITIZENS FORUM

MINUTES OF THE REGULAR BOARD MEETING OF JULY 19, 2017 AND SPECIAL BOARD MEETING/WORKSHOP OF AUGUST 2, 2017

CONSENT CALENDER

STAFFING UPDATE

AWARD OF CONTRACTS FOR THE DVWTP CLEARWELL RECOATING PROJECT

SUPPORT SERVICES FOR COMPLETION OF EMERGENCY BANK STABILIZATION AT 7852 FOOTHILL RD., PLEASANTON

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

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Item 3 -

OPEN SESSION/PLEDGE OF ALLEGIANCE

The Board came out of Closed Session at 7:12 p.m. President Greci called the meeting back into session and led the Salute to the Flag.

Item 4 -

REPORT OUT OF CLOSED SESSION David Aladjem, Counsel, stated that the Board met in Closed Session on the items on the agenda and no reportable action was taken.

Ms. Duerig stated that Staff recommended one emergency change to the Agenda pursuant to Government Code Section 54954.2 - possible additions to the Closed Session items. Copies were distributed to the Board and made available to the public.

Director McGrail moved to approve adding the Closed Session items to the Agenda and Director Quigley seconded the motion which passed by a voice vote of 7-0.

(e) 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) Claim of Bhupinder Singh and Rajinder Randhawa for Damages and Injunctive Relief (Section 910 of the Government Code) against Zone 7 Water Agency, City of Pleasanton, and County of Alameda

Item 5 -

CITIZENS FORUM

Scott Alcaide, a resident of Pleasanton, addressed the board regarding agendizing a discussion on damage to his property. Staff advised Mr. Alcaide that his issues may be addressed in Item 7h on the Agenda.

There were no further public comments.

Item 6 -

MINUTES OF THE REGULAR BOARD MEETING OF JULY 19, 2017 AND SPECIAL BOARD MEETING/WORKSHOP OF AUGUST 2, 2017

Director Palmer moved that the minutes of July 19, 2017 be accepted and approved, and Director Quigley seconded the motion. The minutes were approved by a voice vote of 6-0 with Director Ramirez Holmes abstaining. Director Palmer then moved that the minutes of August 2, 2017 be accepted and approved, and Director Stevens seconded the motion. The minutes were approved by a voice vote of 6-0 with Director Ramirez Holmes abstaining.

Item 7 -

CONSENT CALENDER

a. ACWA Region 5 Board Election

b. Authorization for Director Quigley to Attend the Annual CSDA Conference

c. Professional Services Contract for Board Room A/V Equipment and Installation Services

d. Collaborating Partnership with Imagine H2O

e. Consider Amending Strategic Planning Priorities

f. Joint Community Facilities Agreement between Zone 7, City of Dublin, and Dublin Crossing, LLC

g. Agreement with Vulcan Materials Company to Extend a Second Pipeline, Repair Slopes and Install a Drainage System at Cope Lake

h. Establishing Program for Administrative Support of Private Flood Control and Erosion Projects

i. Personnel Action: New Job Classification - Retired Annuitant

Ms. Duerig stated that Director Palmer had recommended a change to the resolution for Item 7h. A redlined version was distributed to the Board and made available to the public.

Director Ramirez Holmes asked to pull Items 7 (e), (h) and (i) for comments.

Director Ramirez Holmes moved to approve Items 7(a), (b), (c), (d), (f) and (g) and Director Stevens seconded the motion. The items were passed by a voice vote of 7-0.

Resolution No. 17-59 Authorized the General Manger to Cast Zone 7's Vote for

ACWA Region 5 Board (Item 7a)

Resolution No. 17-60 Authorized Director Quigley to Attend the Annual CSDA

Conference (Item 7b)

Resolution No. 17-61 Authorized Boardroom Audio/Visual Equipment and Installation

Services (Item 7c)

Resolution No. 17-62 Authorized a Collaborating Partnership with Imagine H2O (Item 7d)

Resolution No. 17-64 Authorized a Joint Community Facilities Agreement between

Zone 7, City of Dublin and Dublin Crossing, LLC (Item 7f)

Resolution No. 17-65 Authorized an Agreement with Vulcan Materials Company (Item 7g)

Item 7e. Consider Amending Strategic Planning Priorities

In regard to Item 7(e) Director Ramirez Holmes recommended a change to paragraph 5.1 of the Strategic Planning Priorities. Instead of saying "Continue other public outreach efforts and increase collaborative efforts with retailers" she suggested "Increase public outreach. . ." A discussion ensued and consensus was reached that the word "improve" would be a better term to use in the Strategic Planning Priorities.

Director Ramirez Holmes moved to accept the amendment to the Strategic Planning Priorities

with one additional change to item 5.1 so that it would state "Improve public outreach efforts and collaboration with retailers." Director Quigley seconded the motion. The item was passed by a voice vote of 6-1 with Director Stevens voting no.

Resolution No. 17-63 Authorized Revision of the Zone 7 Water Agency

Strategic Planning Priorities (Item 7e)

Item 7h. Establishing Program for Administrative Support of Private Flood Control and

Erosion Projects

In regard to Item 7(h) Mr. Scott Alcaide, a resident of Foothill Road in Pleasanton, addressed the Board. He expressed concern that damage to his property is equal to that of his neighbors, the Belshes, at 55 feet from the foundation to the edge of the cliff. He urged the Board to advance funds that will be reimbursed to the Agency in order to complete construction this year before the winter storms arrive.

Ms. Duerig introduced Jeff Tang, Associate Engineer in the Flood Protection section, who provided a brief presentation regarding the proposed Flood Assistance Program for Private Property Owners that detailed channel ownership and the NRCS Emergency Watershed Protection (EWP) Program.

He said that in March 2017 the Board approved becoming a local sponsor for the NRCS Emergency Watershed Protection Program for 7852 Foothill after the Belshes initiated the process. In that program, during a federally-declared emergency, there is funding available to assist private properties in "imminent danger." It requires that a public agency or government entity be the "local sponsor." The NRCS grant covers 75% of the assessed value of the structure, and 25% of that would have to be matched by some other funding source. Reimbursement is dependent on certain criteria, and is limited to construction and design. Zone 7 contacted several other flood control agencies to find out what sort of programs they have, if any. Santa Clara Valley Water District stated they have not participated in EWP. Napa County Flood does not perform the work without long-term maintenance costs covered to ensure that they are not responsible for that. Contra Costa County Flood has entered into agreements with private landowners covering the costs of the District's project management, design, review, environmental, and right-of-way, construction inspection and construction. That is the amount that the District is willing to cover up front, with the owner responsible to repay those costs as well as the 25% construction cost matching that is required.

Staff recommended adopting a resolution to authorize the proposed program which would make Zone 7's Staff available to all private property owners for consultation on permitting and engineering, and the creation of a template Landowner Agreement which would have these basic elements:

. 25% match, or any costs not covered by NRCS Grant, are covered by the landowner

. Landowner is responsible for long-term maintenance costs

. Zone 7 contributes only staff time to support the project, without requesting reimbursement

There was some discussion on the concept of a template Landowner Agreement. Staff clarified that the program addresses how the Agency is going to contribute its skills and its knowledge, but because this is private property, the benefitting landowner actually pays the costs as outlined in a cost sharing maintenance agreement, using a template such as Contra Costa Flood's.

Tim Hunt, a resident of Pleasanton, addressed the Board in support of Scott Alcaide. He expressed amazement at hearing that nothing was going to happen on the Alcaide property this year. He asked for an explanation regarding the difference between the Belshe, Raun or Alcaide situations. He feels an emergency is an emergency and the situations are equally dire.

David Raun, a resident of Foothill Road in Pleasanton, addressed the Board in support of Mr. Alcaide.

Directors commented that the Agency does have a regional responsibility and that includes being good stewards of public money collected for public property and projects with regional flood protection benefits, such as the Stream Management Master Plan (SMMP) that will be helpful to the Arroyo de la Laguna through upstream regional detention.

Director Ramirez Holmes stated she wants status reports.

Director Ramirez Holmes moved to approve Item 7(h) and Director Quigley seconded the motion. The item was passed by a voice vote of 7-0.

Resolution No. 17-66 Authorized Establishing a Program for Administrative Support

Of Private Flood/Erosion Projects (Item 7h)

Item 7i. Personnel Action: New Job Classification - Retired Annuitant

In regard to Item 7(i) Director Ramirez Holmes expressed concern about the message the retired annuitant program sends to staff when there is discussion about changes to personnel, and the precedent. While she understands the agency has flood control issues, the message that it sends about having someone come back at potentially $139 an hour when we're looking at being a cost effective organization is not something she can support. Due to employee concerns, it is semi-controversial and this is not the right time to bring this kind of program to fruition until any kind of structuring ferrets out and settles down. She inquired how this program fits into the Agency's conversations with the employee labor groups, if those had taken place.

Mr. Solitei explained that the mass retirement exodus the Agency experienced in March 2017 and approximately $44 million in damage to our flood control channels has left our Flood Control section with an exceptionally heavy workload along with the need to train new employees. Creation of the Retired Annuitant classification will allow retired members to return to work for limited tenured assignments, pursuant to California Government Code Section 7522.56, 21220.5 and 8558, California Public Employees' Pension Reform Act (PEPRA) laws, IRS regulations and other applicable laws and regulations. The pay structure is set to pay the Retired Annuitant at the salary level of the position when they left or negotiate it from there. New staff would benefit from the expertise of a Retired Annuitant familiar with the Agency and its processes.

Staff recommends the Board adopt the resolution to (1) approve the addition of one Retired Annuitant classification with salary schedule; (2) authorize the General Manager to approve and sign the salary schedule for this position; and (3) authorize the Auditor-Controller of Alameda County to draw the necessary payroll warrants from Zone 7 funds in accordance with the adopted schedule.

Discussion ensued and the Directors stated that this is not a new program. It has been used successfully by the County of Alameda in other departments, and has also been utilized in the past by Zone 7. At this time, the Agency would like to create a formalized Retired Annuitant classification. Retirees can be brought back to the Agency on a limited time basis to share their expertise during a challenging time of transition at an appropriate salary with no benefits. Consensus is that this program creates a win-win situation.

President Greci asked if there were any public comments. None were received.

Director Quigley moved to approve Item 7(i) and Director Palmer seconded the motion. The item was passed by a voice vote of 6-1 with Director Ramirez Holmes voting no.

Resolution No. 17-67 Authorized a New Classification and Salary Schedule for

Retired Annuitant, Zone 7 (Item 7i)

Item 8 -

STAFFING UPDATE

June Employee of the Month Recognition - Andy Chamberlain

Ms. Duerig announced that Andy Chamberlain, Assistant Engineer in the Flood Control section, was selected as the June Employee of the Month. Andy joined Zone in August 2015 as a Junior Engineer and was promoted to Assistant Engineer in September 2016. He is recognized for his tremendous initiative in recommending and incorporating new technologies into the Flood Control program, such as the use of ArcGIS online. Not only is he a great team player, but he also volunteers for groups and committees. He recently helped with the grant write-up for the Arroyo de la Laguna and passed his Professional Engineer examination. The Board congratulated Mr. Chamberlain in absentia for his accomplishments.

New Employee Introduction - Lira Walter

Ms. Duerig introduced Lira Walter, Administrative Assistant, who was present in the audience. Lira joined Zone 7 through the Temporary Assignment Pool (TAP) program in November 2015 as an Office Assistant supporting the Administrative team. Prior to joining Zone 7, Lira was an Administrative Assistant at State Farm Corporate Legal in Pleasanton and also worked in customer service in the banking industry. She is currently pursuing her Associate's Degree in Business Administration at Las Positas College. The board welcomed Ms. Walter to Zone 7.

New Employee Introduction - John Smith

Ms. Duerig introduced John Smith, Water Plant Operator III in the Operations section. John joined Zone 7 on July 31st and comes to the Agency with over six years of operations experience, most recently as a Water Treatment Facility Operator at the City of Napa. He holds Grade 3 Water Treatment and Grade 3 Water Distribution certifications from the State of California along with a Water Quality Laboratory Analyst I certification from the American Water Works Association. The board welcomed Mr. Smith in absentia.

Item 9 -

AWARD OF CONTRACTS FOR THE DVWTP CLEARWELL RECOATING PROJECT

Rhett Alzona, Principal Engineer, Facilities Engineering section, provided a presentation regarding the Del Valle Water Treatment Plant 4.5 MG Clearwell Interior Recoating Project that highlighted the proposed scope of work needed to remove, replace, and repair the original interior coating applied in 1989-90 and recoat the interior with epoxy coating. Four bids were received and reviewed. Crosno Construction, Inc. was the lowest responsive and responsible bidder, with a bid of $1,177,900. Additionally, two bids were received and reviewed for specialty coating inspection and testing services needed to ensure the coating is applied and cures correctly. Bay Area Coating Consultants, Inc. (BACC), was determined to be the most qualified firm to provide coating inspection services for the project with an estimated cost of $140,000.

Staff recommended the Board approve the plans, specifications, appendices, and addenda for the DVWTP 4.5 MG Clearwell Interior Recoating and Cathodic Protection system Replacement Project, and adopt two resolutions, one for construction and one for inspection.

In response to Director Stevens' question about concern over the range of bids received from $1.2M to $2M, staff responded that Crosno is known to be a very reputable and capable contractor and the consultant BACC has worked with them on several projects, and Staff is comfortable with that.

Director Palmer moved to approve Item 9(a) and Director Quigley seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-68 Authorized Award of Construction Contract for the DVWTP

Clearwell Recoating Project (Project No. 262-17) to

Crosno Construction, Inc. (Item 9a)

Director Quigley moved to approve Item 9(b) and Director Palmer seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-69 Authorized a Coating Inspection Professional Services Contract

For the DVWTP Clearwell Recoating Project to Bay Area

Coating Consultants, Inc. (BACC) (Item 9b)

Item 10 -

SUPPORT SERVICES FOR COMPLETION OF EMERGENCY BANK STABILIZATION AT 7852 FOOTHILL RD., PLEASANTON

Jeff Tang, Associate Engineer, Flood Control section gave a presentation which highlighted the previous board and staff actions taken beginning in March 2017 for design and construction support and interim emergency repairs at 7852 Foothill Road. The original bank stabilization repair concept, which included a "hard" solution involving rock rip rap being placed against the eroded channel wall, topped with precast concrete ultra blocks was not well received by the environmental regulatory agencies (CA Dept. of Fish and Wildlife, RWQCB, and US Army Corps of Engineers). An environmentally-friendly "soft" solution of reinforced soil (using geo-grids) and vegetative plantings with multiple vegetated terraces on the 3 Verona parcel has been developed to allow energy dissipation and satisfy the regulatory agencies. New project components and resulting cost increases for engineering and construction were discussed.

Staff recommended the Board adopt two resolutions to authorize the General Manager to

a. Negotiate and execute an amendment to Agreement A15-06-FAN with Fanfa to provide construction of the emergency bank stabilization project with an increase of $2,750,000, which includes a 25% contingency of $850,000, for a new not-to-exceed repair contract of $6,648,500; and

b. Negotiate and execute an amendment to Agreement A17-71-FLO with FlowWest to provide engineering support to the emergency bank stabilization project with an increase of $100,000 for a not-to-exceed amount of $350,000.

Board members expressed disappointment that the regulators opposed the use of rip rap, necessitating additional design and expenses for this emergency project. However, the Agency is working on both sides of the creek which will benefit not only the homeowners at 9852 Foothill, but others along the reach as well. Director Figuers pointed out that the current design of reinforced earth with the tenser fabric is actually quite strong and flexible and can withstand a lot of erosion, especially in conjunction with the riparian forest. He thinks this is a good design. The Board discussed proceeding with the best techniques available to the Agency and moving forward with these efforts.

Director Ramirez Holmes asked if the Agency has had additional conversations with the City of Pleasanton about their assistance with financial contributions. Staff responded that they have provided support through task orders and although conversations have taken place regarding the 25% portion, the Agency has not yet received any offer of money. Some Board members expressed the opinion that the County should bear some responsibility for this as they approved upstream development.

Scott Alcaide, a resident of Foothill Road in Pleasanton expressed his support of the item and urged the Board to approve it stating that it is too late to retract Zone 7's help.

Dave Raun, a resident of Foothill Road in Pleasanton addressed the Board. He thanked the Board for the construction and progress that has been going on so far. He expressed concern that if this work is not done, multiple homes will be gone this season. He urged the Board to do the right thing and "do what you said you're going to do."

Linda Kelly, a Livermore resident, addressed the Board in support of the item. She expressed empathy for the ADLL homeowners.

Director Palmer moved to approve Item 10(a) and Director McGrail seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-70 Authorized an Amendment to the Fanfa, Inc. Contract for

Completion of Emergency Bank Stabilization (Item 10a)

Director Palmer moved to approve Item 10(b) and Director McGrail seconded the motion. The item was passed by a roll call vote of 7-0.

Resolution No. 17-71 Authorized an Amendment to the FlowWest Contract for Emergency

Bank Stabilization (Item 10b)

Item 11 - Committees: There were no committee meetings during the past month.

Item 12 -

REPORTS-DIRECTORS

a. Verbal comments by President

b. Written report by Director Quigley

c. Written report by Director Palmer

c. Verbal reports

President Greci reported that on August 10th he attended the Joint Public Agencies Meeting Regarding Arroyo de la Laguna Creek Erosion scheduled by Supervisor Nate Miley's office. Also in attendance from Zone 7 were Directors Palmer and Ramirez Holmes, Osborn Solitei and Carol Mahoney. Although he expressed disappointment with the agency participation in the meeting, he commended Ms. Mahoney on the tremendous presentation she gave which highlighted a chronology of what Zone 7 has done, who the Agency is working with, and the current status of the project.

Director Ramirez Holmes expressed appreciation for Director Palmer's written report which detailed the meeting. She also commended Ms. Mahoney for doing a great job at fielding community questions for two hours. She expressed great frustration and dissatisfaction with the way the meeting was set up, stating that it was represented as a joint public meeting, yet other agencies in attendance did not share the responsibility of responding to hard questions that could have been answered by them such as about the rip rap, permits and the approvals. Future meetings should be more cooperative in nature.

President Greci asked if there were any other verbal reports. Director Figuers shared that on Friday, August 4th he participated in an ACWA Region 1 bus tour highlighting the Marin Watershed. The tour included several stops at Marin Municipal Water District facilities including their San Geronimo Treatment Plant, Alpine Dam, and the West Peak of Mt. Tam. He noted it was a fantastic tour with spectacular views of the area.

Item 13 -

ITEMS FOR FUTURE AGENDA - DIRECTORS

Directors Quigley and Greci asked for a discussion item to be placed on a future agenda regarding whether or not to continue televising the agency's regular board meetings. Staff suggested bringing it before renewing the annual contract.

Item 14 -

STAFF REPORTS (Information items. No action will be taken.)

a. General Manager's Report

b. Legislative Update

c. Outreach Activities

d. Water Inventory and Demand Update

e. California WaterFix Quarterly Update

f. FE Capital Projects Update

g. Flood Protection Program 2016 Annual Report

h. Verbal reports

In regard to Item 14(d) the Water Inventory and Demand Update, Director Quigley commended Staff for the information supplied in the report. He discussed section A. Water Inventory which shows that in 2016, significant runoff into Lake Del Valle resulted in 8,900 AF of new local surface water available to Zone 7 for use in 2017. However, the year-to-date cumulative outflow of 167,900 AF represents a 730% increase in runoff compared to 20,200 AF for the same date in 2016. He urged staff to do something about storage and expressed interest in capturing runoff in Lake Del Valle and the Chain of Lakes.

Director Stevens left the meeting at 9:37 p.m.

In regard to Item 14(a) the General Manager's Report, Director Ramirez Holmes asked about next steps regarding public outreach to the neighbors surrounding the Arroyo Mocho Medeiros-Granada Project. Ms. Duerig responded that there will be additional meetings with public scheduled at appropriate milestone points. At the first public meeting held on July 20th most questions were for the City of Livermore who was unable to attend at the last minute. The City has stated that they will be present at the next meeting.

In regard to Item 14(g) Director Ramirez Holmes pointed out that the Flood Protection Program 2016 Annual Report was not available on the website as stated in the staff report. She asked staff to ensure that it was posted.

Item 2 - Closed Session (continued)

President Greci adjourned the Open Session to return to Closed Session at 9:40 p.m.

Open Session and Report Out of Closed Session

The board came out of Closed Session at 9:52 p.m. and President Greci stated that no reportable actions had been taken in Closed Session.

Item 15 -

ADJOURNMENT

The meeting was adjourned at 9:53 p.m.

Board Secretary