Human Services Commission Meeting Agenda Packet 10022024

Page 2 of 7 On November 7, 2023, the City Council approved water rate increases to fund immediate/near- term essential system upgrades; fund plans for water supply alternative project design work; pay for additional purchase of water from Zone 7 over the next 2-3 years; augment staffing to manage, plan, and implement solutions for the water distribution system; and replenish the reserve fund and restore the water fund’s financial position. The City Council adopted a resolution on March 5, 2024, that declared its intent to reimburse itself with proceeds from future debt. On April 16, 2024, the City Council approved a resolution to prepay the 2017 Water Revenue Bonds prior to their maturity on 2/1/2025 to meet the debt service coverage requirements to issue additional debt. DISCUSSION PROJECT OVERVIEW The debt proceeds will be used to fund the projects described below. A detailed report was presented to the City Council on March 19, 2024, regarding the near-term improvement projects and the design work associated with the Water Supply Alternative/City Ground Water Supply Project. The hydraulic analysis conducted for the City’s water system identified several core system deficiencies, including turnout capacities and pipelines, to meet the current and future growth of the system. The loss of regular use of the City’s wells due to per- and polyfluorinated substances (PFAS) created further deficiencies in the City’s system as the wells no longer provide water at key locations within the City’s distribution system. The Water Supply Alternatives (WSA) analysis was completed to determine the best solution to address the PFAS issue, and the hydraulic model was utilized to identify the necessary distribution improvements for the various water supply alternatives. Several sections of pipelines were identified as needing upgrades in all the various alternatives which also aligned with the core system deficiencies. The model was requested to identify the essential improvements that need to be constructed to meet the forecasted system demands until the selected WSA can be put in service (an assumed date of late 2028). The results identified three segments of the pipeline (Bernal Avenue, Stoneridge Drive, and Sunol Boulevard), and improvements at Turnout No. 1 and No. 4 need to be completed and were termed “Near-Term Water Improvements.” Further identified were emergency projects completed to meet the anticipated summer demands of 2024, including temporary repairs to Turnout No. 1 to return it to service and installing a temporary rental pump at Turnout No. 4 to increase the capacity of the turnout. A condition assessment was completed on the water system and is currently being utilized in the prioritization process in the development of the 10-Year Water CIP. The condition assessment identified that water lines on Stoneridge Drive and Sunol Boulevard were near the end of their useful life. The water lines on Stoneridge Drive and Sunol Blvd will be upsized to accommodate the future removal of the older lines. The Near-Term Water Improvements were broken into three bid packages to expedite the work. Bernal Avenue Water Line & Turnout No. 1 - IN PROGRESS The first project is the Bernal Avenue 18-Inch Potable Water Main (F- 4 Line) & Turnout No. 1 Project, CIP 24172, which was awarded for construction on January 16, 2024, for $2.2 million. Page 211 of 448Page 220 of 557