President Figuers stated that the Board evaluated the performance of Rebecca Smith, General Counsel, and deemed her performance to be very satisfactory.

Item 4 -

4. Pledge of Allegiance

President Figuers led the Pledge of Allegiance.

Item 5 -

5. Roll Call of Directors

All Directors were present.

Item 6 -

6. Public Comment on Non-Agenda Items

There was no public comment.

Item 7 -

7. Minutes

Director Palmer made a motion to approve the Special Board Meeting minutes of November 1, 2023, and Director Ramirez Holmes seconded the motion. Director Palmer made a motion to approve the Regular Board Meeting minutes of November 15, 2023, and Director Green seconded the motion. Both motions were approved by a voice vote of 7-0.

Item 8 -

8. Consent Calendar

Director Narum commended staff on Item 8c, the PG&E Interconnection Agreement, as an impressive showcase of staff initiative. She noted staffs proactive efforts to advance the project to a stage where, if implemented, it would qualify under Net Energy Metering 2 (NEM2) for solar. She emphasized that this alignment would significantly benefit the Agency compared to a less favorable outcome under Net Energy Metering 3 (NEM3).

Director Gambs pulled Item 8d to ask for confirmation that as part of the study it will include the allocation of cost on Zone 7's major water supply reliability projects. Osborn Solitei, Treasurer/Assistant General Manager - Finance, responded by drawing attention to page two of the staff report, where the comprehensive scope of work is outlined. He pointed out that, under bullet two, the report explicitly details the assessment of the Agency's current cost allocation methodology for projects designated to the expansion fund.

Director Narum made a motion to approve Items 8a, 8b, 8c, 8e, 8f and 8g and Director Ramirez Holmes seconded the motion. Director Gambs made a motion to approve Item 8d and Director Palmer seconded the motion. Items 8a through 8g were approved by a voice vote of 7-0.

Item 9 -

9. Independent Auditor's Report and ACFR for FY Ended June 30, 2023

Ken Pun from the Pun Group presented the Independent Auditor's Report and Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023, as required by AU-C 260 communications with those charged with governance. He outlined the scope of work, which included a comprehensive audit of the ACFR aligned with the Government Finance Officers Association (GFOA) standards.

The Agency submitted the financial statement to GFOA for the Excellent Financial Reporting Award, exceeding basic financial statement requirements. Additionally, the audit, conducted under government auditing standards, included a report on internal control over financial reporting and compliance.

Mr. Pun emphasized the auditor's responsibility to form an opinion on the fair presentation of financial statements and the agency's adherence to accounting principles. He noted the inclusion of new GASB pronouncements, highlighting GASB Statement No. 96 which had minimal impact on financial statements.

Mr. Pun addressed key points, including independence and ethics adherence, significant accounting policies, and estimates used in financial statements. He recommended reviewing sensitive disclosures in the footnotes. No corrected or uncorrected misstatements were found, indicating a well-managed financial reporting process.

The overview of financial statements revealed a $19 million surplus, with total net position reaching $586 million. Mr. Pun detailed total expenses, program revenue, and net cost of service, pointing out the increase in net position by $19 million.

He provided insights into the cash and investment portfolio, including funds held in county and agency treasuries. Estimates for pension and OPEB liabilities were discussed, emphasizing the impact of discount rate and cost trend rate variations.

Mr. Pun concluded by stating the delivery of an unmodified or "clean" opinion, signifying fair presentation and consistent application of accounting policies. No internal control issues were identified.

Director Palmer asked for some clarification on page 12 regarding deferred inflows of resources and asked for an example. Mr. Pun responded that the deferring inflows and deferred outflows are new elements under the concept statement number six. They are treated as prepaid or unearned in the financial statement. Including in the deferred inflows and deferred outflow resource, are items that are related to the pension assumption that is going to be amortized within the next couple of years.

Director Narum made a motion to approve the Resolution and Director Palmer seconded the motion. Item 9 was approved by a voice vote of 7-0.

Item 10 -

10. Committees

There were no comments on the Committee notes.

Item 11 -

11. Temporary Adjournment/Continuance of Zone 7 Water Agency Meeting

President Figuers adjourned the Zone 7 Water Agency meeting at 7:47 p.m.

Item 12 -

12. Call Livermore Valley Water Financing Authority Regular Meeting to Order

President Figuers called the Livermore Valley Water Financing Authority Regular Meeting to Order at 7:47 p.m.

Item 13 -

13. Roll Call of LVWFA Board

All Directors were present.

Item 14 -

14. Public Comment

There was no public comment.

Item 15 -

15. Livermore Valley Water Financing Authority, Water Revenue Bonds, 2018 Series for theYear Ended June 30, 2023

Mr. Solitei provided an overview of the current debt situation. He highlighted the utilization of both the existing debts and the 2018 debts, amounting to a total expenditure of $71 million. With the project nearing completion, all bond proceeds have been exhausted, concluding the spending phase.

Additionally, Mr. Solitei touched upon the arbitrage calculation, noting that there are no interest earnings on the bond proceeds to report. This aspect will be consistently mentioned in future reports.

Mr. Solitei briefly mentioned the issuance of the 2023 water revenue bonds, totaling approximately $30 million for the PFAS project. He emphasized that future reports would delve into the details of how the funds are allocated, the interest earned, and the payments made. He added that this summary is aimed to provide a clear snapshot of the debt situation, affirming that the funds have been acquired and are currently being spent.

Item 16 -

16. Adjournment of Livermore Valley Water Financing Authority Regular Meeting

President Figuers adjourned the Livermore Valley Water Financing Authority Regular Meeting at 7:49 p.m.

Item 17 -

17. Call Zone 7 Water Agency Meeting to Order

President Figuers called the Zone 7 Water Agency Meeting back to Order at 7:49 p.m.

Item 18 -

18. Reports - Directors

Director Palmer submitted a written report and also gave a verbal report. Director Ramirez Holmes reported that she attended many meetings with the Los Vaqueros JPA and she also attended the ACWA conference. Directors Benson, Gambs, and Green also reported that they attended the ACWA conference.

Item 19 -

19. Items for Future Agenda - Directors

Director Benson stated that she would like an ACWA Foundation presentation at a future Board meeting.

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Zone 7 Meeting - December 20, 2023

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