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Page 6 of 6 in Our Environment, Strategy 1 – Implement the Four Year Capital Improvement Program (CIP) to complete the design and construction of budgeted capital projects and Strategy 3 – Identifying funding and implement the recommendations from the Water Supply Alternative Study to resolve PFAS water quality issues. FISCAL IMPACT A total of $986,487 is currently budgeted in two CIP projects, the Sunol Boulevard 20-Inch Water Main Project (CIP No. 24173) and the Turnout 4 Replacement and Booster Station and Stoneridge Drive 24-Inch Potable Water Main (CIP No. 24171), for the design phase. Staff recommends consolidating these two projects into CIP No. 24171 and renaming as the Near-Term Water Improvements Project. The anticipated total expenditure for this project is $10,641,025, including a project contingency of $1,280,000 (approximately 15 percent of the bid amount and $100,000 for Zone 7). The contingency is for unanticipated costs that may become apparent during the construction phase and Zone 7 cathodic protection work. The budget includes advertising costs, $35,000 for City furnished material, $22,500 for the replacement of traffic signal loop detectors, $110,000 for consultant design and construction support services, $62,400 for rental of temporary pumps, $330,000 for resident engineering services and $50,000 for material testing services under existing on-call contracts. The anticipated total expenditure of $10,641,025 leaves a project shortfall of $9,554,538. A reimbursement resolution was approved by the City Council on March 5, 202, that will allow for the expenditures associated with this project to be reimbursed at a later date once bond proceeds become available. Staff estimates that approximately $5.0 million will be spent through July 2024 and recommends utilizing funds from the Water Operating Fund (Fund 420) to cover these costs. Funds will be transferred back to the Water Operating Fund once the proceeds are available from an anticipated bond sale in early June 2024. Additionally, $100,000 for work associated with installing cathodic protection test stations will be reimbursed by Zone 7. The funding and anticipated project expenditures are detailed in Attachment 2. Prepared by: Submitted by: Approved by: Adam Nelkie, Acting Director, Public Works Adam Nelkie, Acting Director, Public Works Gerry Beaudin, City Manager Attachments: 1. Bid Summary 2. Financial Expenditure Summary 3. Location Map 4. Professional Services Agreement with Woodard & Curran Page 97 of 228