HEADQUARTERS - BOARD ROOM

5700 ALMADEN EXPRESSWAY

SAN JOSE, CA 95118

Tuesday, July 10, 2007

9:30 AM

I. CALL TO ORDER:

1. Roll Call.

II. TIME CERTAIN:

9:35 a.m.

2. Time Open for Public Comment on any Subject not on the Agenda.

NOTE: The law does not permit Board action on, or extended discussion of, any item not on the agenda except under special circumstances. Comments should be limited to three minutes. If Board action is requested, the matter can be placed on the next agenda.

9:40 a.m.

3. Letter of Resignation From Greg Zlotnick, Director - District No. 5 and Consideration of Santa Clara Valley Water District Notice of Intention to Fill Vacancy on Board of Directors District No. 5. (Rudy Medina) (GP-3.1)

Recommendations:

a. Acknowledge Letter of Resignation.

b. Discussion of Appointment Process.

4. Resolution of Appreciation for Outgoing District 5 Director Gregory Zlotnick. (Rudy Medina) (GP-1)

Recommendation:

Adopt the Resolution.

III. CONSENT CALENDAR:

NOTICE TO THE PUBLIC

Items listed in this section of the agenda are considered to be routine by the Board and typically will be adopted by one motion without discussion.   The consent calendar includes action items which the Board has delegated to the CEO, but which law or contract requires to be decided by the Board (EL-9.9), and CEO monitoring reports that do not reflect policy violations or call for debate of policy criteria (GP 4.4).   Any item may be severed for separate consideration at the request of the Board.  Whenever a resolution is on the consent calendar, a roll call vote will be taken on the entire calendar.

5. Resolution Certifying Final Supplemental Environmental Impact Report and Making Findings Thereon; Approving Engineer's Report; Determining to Proceed With Adobe Creek Upper Reach 5 Restoration Project, and Adopting the Mitigation Monitoring and Reporting Program. (Katherine Oven) (EL-9.9)

Recommendations:

a. Consider Potential Environmental Effects of Project.

b. Adopt the Resolution.

c. Direct Clerk of the Board to File Notice of Determination and Final Supplemental Environmental Impact Report With Santa Clara County Clerk-Recorder.

IV. GOVERNANCE PROCESS:

Items listed in this section are considered by the Board to be a part of the Board’s process of governing and the manner in which it operates.

6. Approval of Minutes: May 16, 2007, Special Meeting. (GP-2.4)

Recommendation:

Approve Minutes As Presented.

7. 2007 Board Planning Calendar. (GP-4)

Recommendation:

Discuss the 2007 Planning Calendar.

8. Election of Vice Chair to Serve for Remainder of Year 2007. (Lauren Keller) (GP-5.3)

Recommendation:

Nominate and Elect a New Vice Chair to Serve for Remainder of Year.

9. Santa Clara Valley Water Commission - Draft Minutes of March 28, 2007, Meeting, and Draft Agenda for Meeting of July 25, 2007. (Rudy Medina (GP-8)

Recommendation:

Note the Draft Minutes and Endorse the Draft Agenda.

10. Review of District No. 5 External Committee Appointments. (Lauren Keller) (GP-9)

Recommendation:

Review District No. 5 External Committee Appointments and Consider Assignment to Other Board Members.

11. Reappointments to the Santa Clara Valley Water Commission and Independent Monitoring Committee (IMC). (Lauren Keller) (GP-9)

Recommendations:

a. Approve Reappointment of Mayor Jose Esteves and Council Member Robert Livengood to Water Commission for one-year term.

b. Approve Reappointment of Mr. Galvin Jackson and Mr. Jim Foran to IMC for two-year renewable term.

12. Board Member Reports.

V. BOARD - CEO LINKAGE:

Items listed in this section are considered by the Board to be related to delegation of authority to the CEO and the way in which proper use of delegated authority is ascertained.

13. Review of Fiscal Year 2007, Quarter 3, Total Organizational Performance (TOP) Work Plan Report (Continued From June 12, 2007). (Mary Ann Ruiz) (BL-1, -3.3, -5.4, EL-9.1)

Recommendations:

a. Review TOP Plan.

b. Review Changes.

c. Discuss Any Further Needs.

d. Provide Feedback on District Performance.

14. Review of Fiscal Year 2007, Quarter 3, Executive Limitations Monitoring Reports (Continued From June 12, 2007). (Mary Ann Ruiz) (BL-1, -3.3, -5.4, EL-9.1)

a. EL-2 - Treatment of Consumers (Sharon Judkins)

b. EL-3 - Treatment of Staff (Sharon Judkins)

c. EL-5 - Financial Conditions/Activities (Peter Ng)

d. EL-6 - Emergency CEO Succession (Jose Peralez)

e. EL-7 - Asset Protection. (Peter Ng)

f. EL-8 - Compensation and Benefits. (Jose Peralez)

g. EL-9 - Communication and Support to the Board. (Peter Ng)

h. EL-10 - Equal Employment Opportunity. (Jose Peralez)

Recommendations:

a. Accept the Report.

b. Schedule Future Discussion to Identify Information/Metrics for Future Monitoring Reports.

15. Annual Monitoring Report for Executive Limitations Policy EL-4, Financial Planning/Budgeting (Continued From June 28, 2007). (Peter Ng) (BL-5)

Recommendation:

Accept the Report.

VI. ENDS:

Items listed in this section are considered by the Board to be direction to the CEO and are results to be achieved by the organization.

16. Results of 2007 Community Awareness Survey. (Susan Siravo) (E-4)

Recommendation:

Receive the Report.

VII. EXECUTIVE LIMITATIONS:

Items listed in this section are considered by the Board to not be delegated to the CEO and require Board consideration and/or action.

17. U.S. Environmental Protection Agency (EPA) Grant Application to Assist District and Morgan Hill With Perchlorate Mitigation and Provide 45 Percent Local Matching Funds to be Budgeted in Future Years for Capital Improvement Projects. (Melanie Richardson) (EL-5.3)

Recommendations:

a. Approve Grant Application.

b. Authorize the Chief Executive Officer (CEO) to Enter Into Agreements With U.S. EPA and City of Morgan Hill.

18. Virginia Street Bridge Extension Design Agreement With CH2M Hill, Inc., for Upper Guadalupe River - Reach 6, CAS File No. 4093, Project No. 26154002 (San Jose). (Katherine Oven) (EL-5.7)

Recommendation:

Authorize CEO to Approve Agreement.

19. Project Cooperation Agreement (PCA) With U.S. Army Corps of Engineers for Construction of Flood Protection Improvements on Upper Guadalupe River, Union Pacific Railroad to Blossom Hill Road, Project No. 26154003. (Katherine Oven) (EL-5.3)

Recommendations:

a. Authorize Chair to Execute PCA on July 24, 2007.

b. Authorize CEO to Execute any Necessary Supplemental Documents.

20. New Water Utility Fund Audit for Fiscal Year Ending June 30, 2006 - Amendment No. 1 to Agreement With Maze & Associates. (Sharon Judkins) (EL-5.7.1)

Recommendation:

Authorize CEO to Execute Amendment.

21. Resolution Authorizing CEO to Exchange Easement Rights With City of Palo Alto for San Francisquito Creek Storm Water Pump Station Project (City of Palo Alto, Parcel Nos. 1028-134, 1028-73.02, 1028-73.03) (Beau Goldie) (EL-5.9)

Recommendations:

a. Adopt the Resolution.

b. Authorize the CEO to:

§ Accept Quitclaim Deed for Parcel 1028.134.

§ Execute Grant Deed for Parcel 1028-73.02.

§ Execute Grant Deed for Parcel 1028-73.03.

§ Execute Permission to Enter City for Project Construction Beginning August 1, 2007.

22. Resolution Authorizing Disposal of Interest in Real Property and Recommendation That Staff Manage District-Owned Parcel 9435-1,2,3 (Assessor Parcel No. 676-04-052, -047, -016) as "Excess Land" and Pursue its Sale Opportunities (Santa Clara County). (Frank Maitski) (EL-5.9)

Recommendations:

a. Adopt the Resolution.

b. Authorize Staff to Manage "Excess Land" and Pursue its Sale Opportunities.

23. Request for Exemption of Groundwater Charge Zone W-5 and Response to Board Member Request R-06-0091. (Keith Whitman) (EL-9.9)

Recommendations:

a. Approval to Retain Flores Parcel, APN 779-24-005, in Groundwater Charge Zone W-5.

b. Direct Staff to Either Reevaluate Parcel Designations That Resulted Under Criteria Used Prior to 1989 or Retain Existing Parcel Designations.

24. Chief Executive Officer's Report. (EL-9)

25. Board Member Requests Responded to in CEO Bulletins for the Weeks of June 22-28 and June 29-July 4, 2007. (EL-9.12)

a. I-07-0040, Staff to Provide Information Regarding Status of District Staff Review of Proposed Subdivision Next to Uvas Reservoir Owned by George and Joanne Hall. (Jim Fiedler)

b. R-07-0064, Staff to Look Into Board Members Being Compensated as Independent Contractors Rather Than as Employees. (Debra Cauble)

c. R-07-0085, Staff to Investigate and Bring Back What Other Organizations Have spent on Projects in Demonstration Gardens Area. (Melanie Richardson)

d. R-07-0088, Staff to Provide Information Regarding Status of Tiered Pricing Structure for Water Charges. (Keith Whitman)

e. R-07-0091, Staff to Come Back With Comparison of Initial Capital Investment and Annual Operations Costs Differences Between Penitencia Water Treatment Plant Maintenance Building Project Alternatives A and J, as Described on Page 5 of Attachment 3, of Item 4 of the May 22, 2007, Board Agenda. (Dave Chesterman)

f. R-07-0095, Staff to Provide Overview of How MacArthur Maze/Oakland Overpass was Repaired and Identify Areas Where we can Learn and Apply Those Practices to Our Projects. (Dave Chesterman)

g. R-07-0098, Staff to Provide Results of 2007 Community Awareness Survey, and Include Customer Satisfaction Tracking Information Obtained Over Previous Years. (Susan Siravo)

VIII. NEW BOARD MEMBER REQUESTS.

26. CEO Review and Clarification of Requests.

IX. CLOSED SESSION:

27. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Pursuant to Government Code Section 54957 Title: Chief Executive Officer.

X. ADJOURN:

28. Adjourn to Regular Meeting at 9:30 a.m., on July 24, 2007, at District Headquarters, 5700 Almaden Expressway, San Jose, California.