CITY COUNCIL REGULAR MEETING AGENDA PACKET

4141352.1 1 AGREEMENT BETWEEN ZONE 7 WATER AGENCY AND THE CITY OF PLEASANTON FOR THE REGIONAL GROUNDWATER FACILITIES PROJECT – PHASE I This Agreement (“Agreement”) is entered into on __________, 2024, between the Alameda County Flood Control and Water Conservation District, Zone 7, a public body, corporate and politic, (“Zone 7” or “Zone 7 Water Agency”) and the City of Pleasanton, a municipal corporation (“City”). Zone 7 and City may be referred to individually as party, or collectively as parties. RECITALS WHEREAS, Zone 7 and the City seek to collaborate and share costs for the development of supplemental groundwater extraction facilities, which would provide benefits to both parties including the benefit of increased groundwater extraction capacity; and WHEREAS, Zone 7 provides wholesale potable water to the Livermore Amador Valley serving multiple customers, including the City, which it currently serves under the Term and Conditions Adopted by the Zone 7 Board of Directors on August 16, 2000; and WHEREAS, Zone 7 serves its customers via a water distribution network generally consisting of approximately 42 miles, more or less, of transmission pipelines and appurtenances, 10 groundwater extraction wells, and two water treatment plants; and WHEREAS, in addition to its wholesale water supply function, Zone 7 is also the exclusive Groundwater Sustainability Agency for the Livermore Valley Subbasin where it is responsible for compliance with the Sustainable Groundwater Management Act of 2014 (SGMA); and WHEREAS, the City is a retail water supplier serving approximately 80,000 people with water purchased from Zone 7 or water extracted from the groundwater basin in accordance with its Groundwater Production Quota (GPQ), which as of 2024 is 3,500 Acre Feet per year; and WHEREAS, current testing and modeling analyses suggests that the Bernal Subbasin, which lies within the Livermore Valley Groundwater Subbasin, is outside of the existing PFAS plume, and worthwhile to jointly investigate the feasibility of developing groundwater projects for the parties and; WHEREAS, the parties desire to evaluate the feasibility of additional groundwater extraction facilities within the Bernal Subbasin, with the overall goal of producing potable water supplies that meet and exceed all State and federal water quality standards while creating cost efficiencies for both parties, and if feasible, constructing joint-use groundwater extraction facilities, subject to further negotiations, funding, operating plans, approval from the governing bodies of each entity, and other considerations; and WHEREAS, this agreement is intended to set forth the framework for Phase I of these proposed joint-use groundwater extraction facilities, said Phase I described herein. NOW, THEREFORE, for valuable consideration of the contributions and commitments hereinafter set forth, both parties desire to move forward with Phase I, and agree as follows: Page 172 of 248