Ms. Roberts addressed the Board and the Board welcomed her to the District.

March 8, 2018 Fremont, California The regular monthly meeting of the Board of Directors of ALAMEDA COUNTY WATER DISTRICT was held on March 8, 2018, at the hour of 6:00 P.M. in the Board Room of the District Office Building, 43885 South Grimmer Boulevard, Fremont, California. Present: Staff members present: General Manager Robert Shaver, Manager of Operations & Maintenance Steve Peterson, Manager of Finance Jonathan Wunderlich, Manager of Water Resources Steven Inn, Manager of Engineering & Technology Services Ed Stevenson, Human Resources/Risk Manager Jennifer Rogers, Special Assistant to the General Manager Laura Hidas, Groundwater Resources Manager Michelle Myers, Workplace Health & Safety Officer Kathleen Roberts, Water Resources Engineer Mike Halliwell, Hydrogeologist Eileen Chen, General Counsel Patrick Miyaki, and District Secretary Gina Markou. President Paul Sethy presided. Laura Hidas led in the Salute to the Flag. 3 PUBLIC COMMENTS Ms. Mia Mora, President of LEAF (Local Ecology and Agriculture Fremont) and a Fremont resident addressed the Board and introduced fellow board member Ms. Elaine Owyang. LEAF operates three gardens in Fremont, one of which is located on a parcel of land owned by ACWD. LEAF hopes to partner with ACWD to expand the garden. Ms. Mora informed the Board that LEAF has partnered with StopWaste on their carbon sequestration in an urban farming project. Ms. Mora distributed literature to the Board and thanked them for the opportunity to work with ACWD. Ms. Rogers, Human Resources/Risk Manager, introduced the District s new Workplace Health and Safety Officer, Kathleen Roberts (Katie). Katie comes to the District from the City of Sacramento where she was the Environmental Health and Safety Specialist for the Department of Water Utilities. Katie has experience as a safety trainer and safety consultant, has her Associate Safety Professional certifications, and obtained a Bachelor s degree from the University of Tennessee in Anthropology. Ms. Roberts addressed the Board and the Board welcomed her to the District. 4 CONSENT CALENDAR A motion was made by Director Gunther to add Items 5.1 through 5.4 to the Consent Calendar, seconded by Director Huang.

A motion was made by Director Weed, seconded by Director Akbari to approve the following items on the Consent Calendar as amended. 4.1 Approval of Minutes of Regular Board Meeting of February 8, and Special Board Meeting of February 22, 2018 4.2 Ratification of Payment of Audited Demands dated February 2, February 9, February 16, and February 23, 2018 4.3 Authorization for Directors to Attend the WaterNow Alliance Annual Summit: Accelerating Innovation in Salt Lake City, Utah 4.4 Resolution Approving and Authorizing Execution of Public Water System Extension Agreement with Stevenson Place Associates, L.P., Stevenson Place Family Housing, ACWD No. 2017-0063 RESOLUTION NO. 18-013 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT APPROVING AND AUTHORIZING EXECUTION OF PUBLIC WATER SYSTEM EXTENSION AGREEMENT WITH STEVENSON PLACE ASSOCIATES, L.P., STEVENSON PLACE FAMILY HOUSING, ACWD NO. 2017-0063 4.5 Ratification of Director s Attendance at the March 2, 2018, South Bay Engineers Club Monthly Meeting Fremont, CA 5.1 Resolution Honoring Jill Duerig upon Her Retirement as General Manager from Zone 7 Water Agency 5.2 Resolution Honoring Laurie A. Balcerzak upon Her Retirement from District Service 5.3 Resolution Updating the Composition of the Deferred Compensation Committee 5.4 Authorization of Amendment to Professional Services Agreement for Survey Services for the Central Newark Pipeline Improvement Project 5 ACTION CALENDAR 5.1* RESOLUTION HONORING JILL DUERIG UPON HER RETIREMENT AS GENERAL MANAGER FROM ZONE 7 WATER AGENCY Jill Duerig is retiring from the Zone 7 Water Agency (Zone 7) after over 10 years of service as General Manager. Jill has made numerous major technical and policy contributions to the water and wastewater fields during her 31-year career. Page 2 of 15

Jill has served as the General Manager of Zone 7 since February 2007. In addition to overall responsibility for supplying treated drinking water to retailers serving approximately 220,000 people in Pleasanton, Livermore, Dublin and, through special agreement with the Dublin San Ramon Services District, to the Dougherty Valley area, Jill was also responsible for supplying untreated water for irrigation of 3,500 acres, primarily South Livermore Valley vineyards, and provide flood protection to all 425 square miles of eastern Alameda County. Jill previously served as General Manager for Scotts Valley Water District and for 12 years with the Alameda County Water District, most recently as Production Manager. Jill has worked actively on behalf of water agencies throughout the State, including ACWD, on boards, as well as technical and policy committees of numerous water and wastewater organizations to advance the state of the water industry through her many professional efforts. A motion was made by Director Weed, seconded by Director Akbari to adopt a resolution extending congratulations and appreciation to Jill Duerig for her many years of dedicated service. RESOLUTION NO. 18-014 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT HONORING JILL DUERIG UPON HER RETIREMENT AS GENERAL MANAGER FROM ZONE 7 WATER AGENCY 5.2* RESOLUTION HONORING LAURIE A. BALCERZAK UPON HER RETIREMENT FROM DISTRICT SERVICE Laurie Balcerzak will be retiring on March 2, 2018 after more than 30 years of service with the District. Laurie began her professional career with the District on February 16, 1988 as an Accounting Assistant in the Finance Department. In July 1989, she was promoted to a Meter Reader. In July 1997, she was promoted to Water Treatment Plant Operator Trainee and joined the Operations Department. Laurie completed her training program and was promoted to Water Treatment Plant Operator in November 1998. She was promoted to Advanced Water Treatment Plant Operator in August 2004, a position she held until retirement. Laurie holds a Grade 5 Water Treatment Operator certificate and a Grade 2 Water Distribution Operator certificate from the California State Water Resources Control Board. During her tenure at the District, Laurie performed her duties with competence and dedication. As a Water Treatment Plant Operator, Laurie was the responsible, State-designated Shift Operator for the operation of the Mission San Jose Water Treatment Plant, the Peralta-Tyson Blending Facility, Water Treatment Plant No. 2, and the water distribution system. Laurie s Page 3 of 15

dedication has greatly contributed to the District s ability to reliably provide high quality drinking water within the District s service area during her tenure as an Operator. Laurie received special recognition from the District in November of 1994, for her concern for human welfare when she assisted an elderly gentleman in rising and moving to safety after he had fallen down in the street at the corner of Warren Avenue and Fernald Street. Laurie received a Suggestion Program award in 2010 for her suggestion regarding pager use, and she also received a Future of ACWD award in 2014 for her suggestion regarding vehicle assignments. Laurie has the distinction of being both the first Water Treatment Plant Operator Trainee at the District, and the first person promoted to the Advanced Water Treatment Plant Operator position by demonstrating a comprehensive understanding of the District s water treatment facilities and distribution system. She will be missed by her many friends at the District. A motion was made by Director Weed, seconded by Director Akbari to adopt a resolution honoring Laurie A. Balcerzak and expressing appreciation for her 30 years of dedicated service with the District. RESOLUTION NO. 18-015 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT HONORING LAURIE A. BALCERZAK UPON HER RETIREMENT FROM DISTRICT SERVICE 5.3* RESOLUTION UPDATING THE COMPOSITION OF THE DEFERRED COMPENSATION COMMITTEE The Deferred Compensation Committee for the District s deferred compensation plan includes various staff positions, some of which are no longer in use at the District. As such, the authorized membership of the Deferred Compensation Committee should be updated to reflect current and accurate membership. In January 1999, the Board adopted Resolution 99-011 which included the designation of a Deferred Compensation Committee to act as trustees for the District s deferred compensation plan. In 2006, by resolution the Board reconfirmed the existence of the Committee and the limitation of liability and indemnity of the members servicing on the Committee, among other administrative actions. In 2011 the Board reconfirmed the existence of the Committee, added two new members to the Committee, and updated the employee titles to reflect current position titles. One position listed as a member of the Deferred Compensation Committee, the Manager of Administrative Services, is no longer in use at the District. Additionally, two positions on the committee have been replaced with a new position and/or have a new position title. As such, Page 4 of 15

staff recommends the authorizing Resolution be updated to accurately reflect the current makeup of the Committee members and position titles, specifically to: 1) remove reference to the Manager of Administrative Services; 2) update the title of the Financial Services Manager to the Rates, Financial Analysis, and Budget Manager, and 3) update the Supervising Human Resources Analyst title to the Human Resources and Risk Manager. A motion was made by Director Weed, seconded by Director Akbari to adopt a resolution to update the composition of the Deferred Compensation Committee. RESOLUTION NO. 18-016 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT UPDATING THE COMPOSITION OF THE DEFERRED COMPENSATION COMMITTEE 5.4* AUTHORIZATION OF AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT FOR SURVEY SERVICES FOR THE CENTRAL NEWARK PIPELINE IMPROVEMENT PROJECT Land survey services are typically required to support District project designs, prepare base maps, prepare plats and legal descriptions for easement acquisitions, confirm property boundaries, and complete other survey related work. The District maintains a multi-year services agreement with a licensed land surveyor to provide these services as well as to monitor for ground movement at several District facilities. Such as-needed survey services are added to the agreement by amendment when required. Survey services are now needed to support ongoing work for the Central Newark Pipeline Improvement Project. There is adequate funding in the current fiscal year capital budget for this expenditure. The pipeline project and the need for this work were reviewed with the Engineering and Information Technology Committee on February 14, 2018. A professional services agreement with BKF Engineers (BKF) was awarded on June 8, 2017, in the amount of $49,450.50 for ground survey monitoring of District facilities, including reservoir embankment monitoring in accordance with California Department of Water Resources Division of Safety of Dams requirements, and other survey related work required in support of various District projects. The agreement, which resulted from a competitive procurement process, provides the District with the option to receive survey services from BKF as needed at set rates over an 18 month period with the option to extend three additional one-year terms. Amendment No. 1 to the Professional Services Agreement, in an amount not to exceed $166,806.00, was previously awarded by the Board on September 28, 2017, for survey work necessary to support multiple District projects. Page 5 of 15

The Central Newark Pipeline Improvement Project (Project) includes the evaluation and renewal of the water mains within portions of Thornton Avenue, Newark Boulevard, Birch Street, Cedar Boulevard, Timber Street, Central Avenue and Cherry Street in Newark. The design of the Project is currently underway, and now requires the services of a land surveyor to conduct utility surveys, prepare base maps for project designs, and complete other survey related work. Staff requested BKF to submit a proposal for the additional scope of work. The additional work will be completed on a time and expense basis for a total amount not to exceed $233,452 in accordance with the terms of the existing agreement, and will result in a new total agreement amount not to exceed $449,708.50. Staff has evaluated BKF s proposal, and determined that the proposed approach, estimated level of effort, and cost are appropriate for the work. A motion was made by Director Weed, seconded by Director Akbari to authorize the General Manager to execute an amendment to the professional services agreement with BKF Engineers in an amount not to exceed $233,452, for survey services for the Central Newark Pipeline Improvement Project, Job 21235. 5.5 AUTHORIZATION OF PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE RUBBER DAM NO. 3 FISHWAY CONSTRUCTION AND FABRIC REPLACEMENT PROJECT Director Weed recused himself from discussion of this item due to a common law conflict of interest. Direct Weed left the Board Room at 6:07 P.M. Mr. Stevenson reported that the Rubber Dam No. 3 (RD3) Fishway Construction and Fabric Replacement Project (Project) includes the construction of a new fishway, dam foundation modifications, and installation of new rubber dam fabric and associated components (RD3 Fishway). Construction of the Project is anticipated to begin in May 2018 with a requirement for all in-creek construction to be completed by October 31, 2018. To help ensure compliance with contract and permit requirements, construction management services are required. There is adequate funding in the approved 2-year project budget for this expenditure. The scope and need for construction management services were reviewed with the Engineering and Information Technology Committee on February 14, 2018. The RD3 Fishway is a key component of the Lower Alameda Creek Fish Passage Improvement Projects which are intended to enhance steelhead migration through Lower Alameda Creek while sustaining the long term reliability of the District s groundwater recharge operations. Construction of the Project is anticipated to begin in May 2018 and must be completed in compliance with numerous permit requirements, including construction monitoring, quality standards, and deadlines for completion of work within the Alameda Creek Flood Control Channel. The Project will involve the work of several contractors and subcontractors, the Rubber Dam System Supplier which is furnishing the new rubber dam fabric and related components, and several specialty inspectors and environmental compliance monitors. Page 6 of 15

Staff issued a Request for Proposals on January 18, 2018, requesting interested firms to submit proposals for construction management services in support of the Project. On February 15, 2018, six proposals were received. Each proposal was evaluated based upon established criteria including project understanding, project approach and proposed scope of work, company and personnel qualifications, and level of effort. Based upon this evaluation, four firms were invited to interviews, and four were interviewed. Based on a comprehensive evaluation of proposals and interviews, AnchorCM of Lafayette, California was the firm which ranked the highest based upon all established evaluation criteria, and was determined to have the qualifications, staff, and proposed approach that best meet the District s needs. AnchorCM s scope of services includes: 1) field monitoring and contractor coordination; 2) construction inspection and daily reporting; 3) technical submittal review and coordination; 4) quality assurance and quality control activities; 5) maintenance of project documentation; 6) project change management; and 7) specialty inspection coordination and management. AnchorCM s estimated cost for the requested services, based on a time and expense basis for the work, is $391,540. Staff has negotiated the proposed scope of work and level of effort with AnchorCM and finds the resulting scope of work, estimated level of effort, and costs to be reasonable for the services to be provided. Mr. Shaver announced that the District will be holding a groundbreaking ceremony on Monday, April 23, 2018 @ 10:00 A.M. A motion was made by Director Huang, seconded by Director Gunther to authorize the General Manger to execute a professional services agreement with AnchorCM in an amount not to exceed $391,540 for construction management services for the Rubber Dam No. 3 Fishway Construction and Fabric Replacement Project, Job 21083. Directors Gunther, Akbari, Huang, and Sethy Director Weed Director Weed rejoined the meeting at 6:12 P.M. 5.6 RESOLUTION AMENDING BOARD RULES AND CODE OF CONDUCT REGARDING ELECTRONIC COMMUNICATIONS Mr. Stevenson reported that the Board s existing Board Rules and Code of Conduct (Board Rules) set forth procedures the Board must follow to comply with applicable laws and regulations, together with guidelines and procedures to guide members of the Board in their interactions with the public, staff, and each other. The Board Rules are updated from time to time to reflect changes in law, regulations, guidelines, or procedures. Staff and General Counsel recommend the Board Rules be modified to clarify and improve guidance related to electronic communications and the use of District accounts (such as email) and District-issued electronic communication devices (such as mobile phones and computers). The proposed modifications are focused primarily on addressing a recent court determination Page 7 of 15

that electronic communications that relate to the public s business are subject to the California Public Records Act regardless of the type of account or device used in the preparation or transmission of the communications. Section 6 of the Board Rules addresses electronic communications and includes prohibitions, restrictions, and guidelines to help ensure transparency, security of the District s information technology resources, and compliance with applicable regulations and laws such as the California Public Records Act (Public Records Act). A recent ruling by the California Supreme Court found that all electronic communications that are related to the business of the public are subject to the Public Records Act regardless of the type of account or device used in the preparation or transmission of such communications. Therefore, electronic communications to and from a member of the Board that are related to District business are considered public records (even those from personal email or personal devices) and are subject to disclosure under the Public Records Act. Accordingly, staff and General Counsel recommend revisions to Section 6 of the Board Rules to address this finding. A motion was made by Director Gunther, seconded by Director Akbari to adopt a resolution amending Section 6, Electronic Communications, of the Board Rules and Code of Conduct. RESOLUTION NO. 18-017 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT AMENDING BOARD RULES AND CODE OF CONDUCT REGARDING ELECTRONIC COMMUNICATIONS 5.7 RESOLUTION SUPPORTING THE CALIFORNIA DROUGHT, WATER, PARKS, CLIMATE, COASTAL PROTECTION, AND OUTDOOR ACCESS FOR ALL ACT OF 2018 5.8 RESOLUTION SUPPORTING THE STATE WATER SUPPLY INFRASTRUCTURE, WATER CONVEYANCE, ECOSYSTEM AND WATERSHED PROTECTION AND RESTORATION, AND DRINKING WATER PROTECTION ACT OF 2018 Items 5.7 and 5.8 were reviewed concurrently. For Item 5.7, Ms. Hidas reported that on October 15, 2017, Governor Jerry Brown signed legislation to put a $4.1 billion parks and water bond before voters this June. The measure, upon approval, would enact the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 ( 2018 Parks & Water Bond ). The legislation signed by Governor Brown, SB 5, includes $4 billion in new debt, plus the repurposing of $100 million in existing unspent bond funds, for a total of $4.1 billion to fund various natural resources-related Page 8 of 15

programs, such as habitat conservation and parks, and water-related projects. The measure is currently supported by the Association of California Water Agencies, the California Chamber of Commerce, and various environmental and conservancy organizations. The 2018 Parks & Water Bond, California Proposition 68, will be on the June 5, 2018 state-wide ballot in California as a legislatively-referred bond act. The measure, upon voter approval, would authorize $4.1 billion in general obligation bonds for natural resources-related programs, including state conservancies and wildlife conservation; climate preparedness and habitat resiliency; ocean and coastal protection; river and waterway improvements; parks in neighborhoods; local and regional parks; state park restoration, preservation and protection; trails, greenways and rural recreation; flood protection; groundwater recharge and cleanup; safe drinking water; and water recycling. The measure also includes several provisions designed to assist disadvantaged communities and severely disadvantaged communities. Specific spending proposals in the proposition include: - $725 million to create and expand parks in neighborhoods with limited park facilities. - $285 million for improvements and enhancements to local and regional parks, trails & related facilities. - $218 million for restoration, preservation and protection of existing State park facilities. - $30 million for competitive grants for trails, greenways and infrastructure projects to promote new or alternative access to parks and outdoor recreation. - $25 million for competitive grants for rural recreation and tourism enhancements. - $162 million for grants pursuant to the California River Parkways Act of 2004 and the Urban Streams Restoration Program. - $767 million to fund Salton Sea management, conservancies, the Wildlife Conservation Board and the Natural Resources Agency to implement watershed protection and restoration efforts. - $175 million to fund projects that enhance and protect coastal and ocean resources. - $443 million for competitive grants to fund climate adaptation and resiliency projects. - $250 million for grants and loans for the provision of clean, safe and reliable drinking water. - $80 million for competitive grants for cleanup of groundwater that serves as a source of drinking water. - $550 million for flood protection and repair, including some multi-benefit projects. - $290 million for drought and groundwater investments for regional sustainability. Staff has reviewed the text of the 2018 Parks & Water Bond and determined that the bond could provide significant resources to ACWD and other Bay Area water providers in improving local and regional water supply reliability and water quality, as well as providing for ecosystem restoration and enhancements. At the Board meeting, staff will provide additional information on the 2018 Parks & Water Bond and outline the potential funding opportunities for ACWD and Bay Area regional water supply reliability projects and ecosystem-related projects should the bond measure be approved by voters. For Item 5.8, Ms. Hidas reported that the State Water Supply Infrastructure, Water Conveyance, Ecosystem and Watershed Protection and Restoration, and Drinking Water Protection Act of 2018 ( Water Supply and Water Quality Act of 2018 ) is an $8.877 billion citizen s initiative Page 9 of 15

water bond that is anticipated to be added to the State-wide ballot in November 2018. The initiative, if approved by voters, would fund a wide variety of water-related programs, such as for habitat improvements, safe drinking water, water conservation, and water reliability-related projects. This initiative is currently supported by the Association of California Water Agencies and various conservation, agricultural and environmental justice organizations. The Water Supply and Water Quality Act of 2018, is anticipated to be added to the November 6, 2018 ballot in California as a citizen s initiative bond act. The initiative, upon voter approval, would authorize $8.887 billion in general obligation bonds for water-related programs, such as for water supply and quality, water recycling, water conservation, groundwater management, watershed protection and habitat restoration, and many other programs. Specific spending proposals in the initiative include: - $500 million for safe drinking water. - $250 million for wastewater treatment for disadvantaged communities. - $400 million for water recycling projects. - $400 million for groundwater desalination projects. - $300 million for water conservation programs. - $15 million to fund the Water Energy Technology program to accelerate innovative water and energy saving technologies. - $50 million for agricultural water conservation projects. - $500 million for flood management for improved water supply. - $60 million to fund water measurement and information systems. - $550 million for projects that capture and use stormwater and urban runoff. - $5 million for continued Integrated Regional Water Management efforts. - $2.355 billion to fund watershed improvements for water supply and water quality enhancements. - $100 million for land and water management through competitive Wildlife Conservation Board grants. - $40 million for California Conservation Corps projects to protect, restore and improve the health of watershed lands. - $400 million for Central Valley fisheries restoration - $675 million for projects and programs that support sustainable groundwater management. - $10 million for use by the Office of Sustainable Water Solutions for technical assistance - $930 million to fund water for wildlife, fish and wildlife restoration projects, and projects to protect migratory birds. - $10 million for water reliability and habitat protection projects in the Sacramento region. - $250 million for the Bay Area Regional Reliability partnership to fund new facilities with region-wide benefits. - $750 million for improvements to the Madera and Friant-Kern Canals. - $100 million for San Joaquin River restoration - $5 million for North Bay Aqueduct planning - $200 million for repair and reconstruction of the spillways at Oroville Dam - $21 million for Sutter Butte flood management-related projects. - $1 million for Butte County emergency preparedness and communications. Page 10 of 15

Staff has reviewed the text of the Water Supply and Water Quality Act of 2018 and determined that the bond could provide significant resources to ACWD and other Bay Area water providers in improving local and regional water supply reliability and water quality, as well as providing for ecosystem restoration and enhancements. At the Board meeting, staff will provide additional information on the Water Supply and Water Quality Act of 2018 and potential funding opportunities for ACWD and regional water supply reliability projects and ecosystem-related projects. Discussion ensued and staff responded to inquiries from the Board. General Counsel, Mr. Miyaki, summarized the legal parameters as to what the District cannot and can do with regard to ballot measures. Generally, the District can adopt a formal position on a ballot measure and to educate the public on the measure and the District s position. However, the District may not spend public funds or use agency resources to advocate either in support or in opposition. Discussion ensued and Mr. Miyaki responded to inquiries from the Board. A motion was made by Director Gunther, seconded by Director Akbari to adopt a resolution supporting the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018. RESOLUTION NO. 18-018 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT IN SUPPORT OF PROPOSITION 68 - THE CALIFORNIA DROUGHT, WATER, PARKS, CLIMATE, COASTAL PROTECTION, AND OUTDOOR ACCESS FOR ALL ACT OF 2018 A motion was made by Director Huang, seconded by Director Gunther to adopt a resolution supporting the State Water Supply Infrastructure, Water Conveyance, Ecosystem and Watershed Protection and Restoration, and Drinking Water Protection Act of 2018. RESOLUTION NO. 18-019 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT IN SUPPORT OF THE STATE WATER SUPPLY INFRASTRUCTURE, WATER CONVEYANCE, ECOSYSTEM AND WATERSHED PROTECTION AND RESTORATION, AND DRINKING WATER PROTECTION ACT OF 2018 Page 11 of 15

5.9 RESOLUTION APPROVING THE ALAMEDA COUNTY WATER DISTRICT FIVE- YEAR STRATEGIC PLAN Ms. Hidas reported that three public Strategic Planning workshops were held during 2017 with the Alameda County Water District s (District s) Board of Directors (Board) and senior staff to reaffirm the District s core mission and establish strategic goals to drive organizational alignment and priorities for the next five years. Five strategic goals and associated objectives resulted from this process, and the Alameda County Water District Five-Year Strategic Plan was developed to document and communicate these goals, and to track their progress into the future. In late 2017, the District s Board undertook a Strategic Planning effort to step back, consider the big picture, assess the changing environment that the District is finding itself in, discuss current and future challenges, reaffirm the District s mission, and to set the strategic direction and priorities of the District for the future. The Strategic Planning process consisted of three public workshops held on September 7, October 10 and December 7, 2017 with the District s Board and senior management staff. Topics covered examined all aspects of the District s work, including the areas of water supply, water quality, cost-effectiveness, staffing resources, financial stability and resiliency, emergency preparedness and response, and community outreach and engagement. The Board identified five strategic goals through this process, as follows: 1. Maintain and improve the cost effectiveness and value of District services. 2. Sustain a reliable, high quality water supply for District customers. 3. Improve the District s financial stability and transparency. 4. Improve workforce recruitment, maintain retention, and enhance employee engagement. 5. Promote clear and open communication, outreach, and engagement with customers and communities. The Alameda County Water District Five-Year Strategic Plan documents the objectives, activities, timelines and outcomes associated with each of these five goals, and also includes a discussion of resources, costs, and tracking of progress. Staff has presented a draft of this Plan at the February 2018 Board meeting, incorporated feedback received from the Board, and prepared a final version of the Plan for approval by the Board. The Board thanked staff for their efforts in consolidating the goals and the preparation of the Plan. A motion was made by Director Akbari, seconded by Director Huang to adopt a resolution approving the Alameda County Water District s Five-Year Strategic Plan. Page 12 of 15

RESOLUTION NO. 18-020 OF BOARD OF DIRECTORS OF ALAMEDA COUNTY WATER DISTRICT APPROVING THE ALAMEDA COUNTY WATER DISTRICT FIVE-YEAR STRATEGIC PLAN 2018 6 REPORTS 6.1 BOARD COMMITTEE REPORTS Operations & Water Quality Committee Meeting of February 7, 2018: 1) Complying with Potential New and Upcoming Water Quality Regulations; 2) Status of 2015 Multi-Year Tank and Reservoir Cleaning Program Engineering & Information Technology Committee Meeting of February 14, 2018: 1) Update on Rubber Dam No. 3 Fish Ladder Project; 2) Review on Washington Boulevard/Interstate 680 Pipeline Improvement Project; 3) Update on Main Renewal Program; 4) Update on New Developments; 5) Review of Surplus and Candidate Surplus District Properties Legal, Intergovernmental & Community Affairs Meeting of February 15, 2018: 1) Update on State Legislation; 2) Public Outreach Update; 3) School Outreach Update Finance & Outreach Committee Meeting of February 20, 2018: 1) Deferred Compensation Plan Administrator Contract Renewal ICMA-RC; 2) Income and Budget Statements Water Resources & Conservation Meeting of February 28, 2018: 1) Niles Gateway Mixed- Use Project; 2) Water Supply Outlook; 3) Long-Term Water Supply Uncertainties Update 6.2 OPERATIONAL REPORTS Rainfall Report Mr. Inn updated the Board on the rainfall to date. Water Production Report Mr. Peterson updated the Board on the status of Water Treatment Plant No. 2, which was offline during the month of March for annual maintenance. Investment Report Distribution System Monthly Hardness Map 6.3 STAFF PRESENTATIONS Niles Cone Groundwater Conditions and Survey Report Review - Mikel Halliwell updated the Board on the Niles Cone groundwater conditions and presented the annual survey Page 13 of 15

report. A recommended increase to the replenishment assessment fee was provided for consideration. Staff s recommendation is to increase the replenishment assessment fee from $402 to $437 per acre-foot, an increase of 8.7 % effective July 1, 2018. Discussion ensued and Mr. Halliwell responded to inquiries from the Board. A public hearing on the proposed increase will occur on April 10, 2018. 6.4 GENERAL MANAGER S REPORT Consider Supporting ACWA Coalition to Oppose State Tax on Drinking Water Mr. Shaver reported that SB 623 (Monning, D-Carmel) is a proposal to apply a public goods charge, or a tax, on Californian s drinking water. This statewide tax is proposed as a way to address a lack of access to safe drinking water for some people who live in rural, disadvantaged communities. Senator Monning is calling the proposed public goods charge the Safe and Affordable Drinking Water Fee. Although there is no dispute that there are water accessibility and affordable issues in some portions of the State, the Association of California Water Agencies (ACWA) is opposing the bill and calling it one of the most important efforts undertaken by the association in recent years. ACWA is launching a fund-raising effort to secure an outside public affairs firm to help develop a more strategic external affairs campaign and assist with coalition building outside the water industry. Based on ACWD s size, ACWA has requested $25,000 from ACWD. Mr. Shaver requested input and guidance from the Board. Discussion ensued and individual Directors provided input to the General Manager. Mr. Wunderlich reported that for the 19 th consecutive year, the District has been awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. To earn this highly coveted award, an agency must demonstrate strict compliance with government accounting rules, transparency, and fiscal prudence. 7 DIRECTOR S COMMENTS, REPORTS ON MEETINGS ATTENDED, AND AGENDA ITEM REQUESTS Director Sethy reported that the California Water Commission Meeting, in Sacramento, CA, was changed to February 21, 2018, and he was unable to attend. Director Weed reported on the February 27 March 1, 2018, Association of California Water Agencies 2018 Washington D.C. Legislative Conference. Director Sethy reported on the March 2, 2018, South Bay Engineers Club Monthly Meeting, in Fremont, CA. Director Huang appreciated the District s tweet on International Women s Day which showcased women engineers, professionals and their contribution to ensuring safe drinking water. Directors Gunther and Sethy thanked staff for their involvement in the recent Alameda Creek Crawl. This event included a guided tour of several points of interest along Alameda Creek. Director Weed informed the Board that the State Water Resources Control Board will be holding a Water Affordability Symposium on April 5, 2018, in Sacramento. Page 14 of 15

Director Sethy informed the Board that he participated as a judge for the Rotary regional speech contest. 8 CLOSED SESSION Mr. Miyaki announced that the Board will convene in closed session to discuss the following item: 8.1 Pursuant to California Government Code Section 54957.6 Conference with Labor Negotiators Agency Designated Negotiators: Robert Shaver, Jennifer Rogers, and Glenn Berkheimer Employee Organizations: Operating Engineers Local 3 and ACWD Operators Association President Sethy adjourned the meeting to closed session at 8:28 P.M. and reconvened the meeting at 9:01P.M. Mr. Shaver reported that in closed session regarding Item 8.1, direction was given to the designated labor negotiators and no Board action was taken. There being no further business to come before the Board, the meeting adjourned at 9:02 P.M. Gina Markou, District Secretary Attest: Paul S. Sethy, President Page 15 of 15