CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 4 Item #14 CITY COUNCIL AGENDA REPORT June 18, 2024 Public Works - Operations Division TITLE: APPROVE AGREEMENT BETWEEN CITY OF PLEASANTON AND ZONE 7 WATER AGENCY TO PERFORM PHASE I FEASIBILITY REVIEW FOR THE REGIONAL GROUNDWATER FACILITIES PROJECT SUMMARY On October 17, 2023, the City Council approved proceeding with the planning and development of new groundwater wells in the Bernal subbasin to recover the use of its Groundwater Production Quota (GPQ) of 3,500 acre-feet per year. Planning efforts included evaluating the feasibility of collaborating with Zone 7 Water Agency (Zone 7) on a joint project. On February 15, 2024, Zone 7 and City staff completed a process that outlined the terms of collaboration for a joint project to increase Zone 7’s groundwater production capacity for the Tri-Valley region, recover the use of the City’s GPQ, and produce water supply that meets and exceeds all State and federal water quality standards including regulations for Per-and Polyfluoroalkyl Substances (PFAS). The joint project is titled Regional Groundwater Facilities Project (Project), and implementation will be broken into three phases: Phase I - Feasibility Review, Phase II – Design and Construction, and Phase III – Operation and Maintenance (O&M). To perform Phase I of the Project, staff has prepared a recommended agreement between the City and Zone 7. The scope of work includes well siting analysis, exploratory test drilling, a technical feasibility evaluation, developing an environmental compliance strategy, and negotiating draft terms for Phases II and III of the Project. As part of the recommended agreement, Zone 7 and the City will contribute their own staff time and resources for self- performed tasks and activities. The cost of contractor and consultant services will be equally shared (50 percent/50 percent cost sharing), with a combined not-to-exceed limit of $2 million dollars. RECOMMENDATION 1. Approve agreement between the City of Pleasanton and Zone 7 Water Agency to perform Phase I – Feasibility Review for the Regional Groundwater Facilities Project. 2. Authorize the City Manager to execute the agreement with Zone 7 for Phase 1, which includes provisions for Zone 7 to execute contracts with contractors and consultants to perform Phase I services with a combined not-to-exceed limit of $2,000,000 equally shared (50 percent/50 percent cost share) by the City and Zone 7. Contracts will be executed by Zone 7 only after approval from the Project Steering Committee, which includes Zone 7’s Water Resources Manager and General Manager and the City’s Director of Public Works and City Manager. BACKGROUND Page 168 of 248