CITY COUNCIL REGULAR MEETING AGENDA PACKET 7-21-26

Page 1 of 3 Item #7 CITY COUNCIL AGENDA REPORT July 21, 2026 Public Works - Utilities Division TITLE: ADOPT A RESOLUTION AUTHORIZING THE DIRECTOR OF PUBLIC WORKS, OR DESIGNEE, TO APPLY FOR AND EXECUTE DOCUMENTS RELATED TO CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FUNDING AND FINANCIAL OPPORTUNITIES FOR THE GROUNDWATER SUPPLY PROJECT SUMMARY The City is pursuing funding and financing opportunities through the California State Water Resources Control Board (SWRCB) for the City’s Groundwater Supply Project. The proposed resolution authorizes the Director of Public Works, or his or her designee, to submit financing applications, execute related agreements and certifications, and take other actions necessary to secure financing and funding opportunities for the project. RECOMMENDATION Adopt a resolution authorizing the Director of Public Works, or his or her designee, to apply for and execute documents related to SWRCB funding opportunities for the Groundwater Supply Project. BACKGROUND The City has historically met its water demands through a combination of treated water purchases from Zone 7 Water Agency (Zone 7) and use of its local groundwater production quota (GPQ) of 3,500 acre-feet per year through City-owned Wells 5, 6, and 8, which supplied approximately 20 to 30 percent of the City’s annual water demand. In June 2019, Well 8 was taken out of service after PFAS (per- and polyfluoroalkyl substances) were detected above advisory levels. In November 2022, Wells 5 and 6 were taken out of service after PFAS was detected at levels above the revised advisory levels. As a result, the City lost the ability to utilize its GPQ and was required to purchase 100 percent of its water supply from Zone 7. This led to higher water supply costs, reduced diversification of local water supplies, and concerns about long-term reliability, particularly during drought conditions. To address these concerns, the City conducted a Water Supply Alternatives Study to assess multiple strategies, including rehabilitating the City’s existing wells with PFAS treatment, developing new groundwater wells, and continuing to rely entirely on purchased water from Zone 7. In October 2023, the City Council approved the study's recommendation to pursue development of new groundwater wells in the Bernal groundwater subbasin through establishment of the City Groundwater Supply Project, CIP No. 24174. Additional engineering studies completed with Zone 7 found that developing the wells in partnership would be beneficial to both agencies. In April 2026, the City Council approved the implementation of the City Groundwater Supply project. Groundwater supply improvements would be implemented in partnership with Zone 7 Page 95 of 923