CITY COUNCIL REGULAR MEETING AGENDA PACKET 7-21-26

Page 2 of 3 and would include the development of two new groundwater production wells at Tennis and Community Park and Hansen Park, a new transmission pipeline connecting the wells to the Zone 7 Hopyard Chloramination Facility, and upgrades to the Zone 7 Hopyard Chloramination Facility. Zone 7 would deliver the City’s GPQ to the City’s distribution system via its existing transmission system and turnouts. In order to receive the groundwater from Zone 7, improvements to the City’s distribution system would also be required, including pipe upsizing and construction of a new turnout. Improvements to the City’s distribution systems would be the sole responsibility of the City. The cost of the Groundwater Supply Project, including the City's share of the groundwater supply improvements to be jointly constructed with Zone 7 and the City’s distribution improvements, is currently estimated at approximately $27.5 million, in 2026 dollars. The City seeks to actively pursue state and federal funding opportunities to offset project costs, leverage outside resources, and reduce financial impacts on ratepayers. Staff has initiated the preliminary application process with the California State Water Resources Control Board (SWRCB) to pursue available funding and financing opportunities for the project, including the Emerging Contaminants Program, which may provide principal forgiveness and other financial assistance for projects that address PFAS impacts to drinking water supplies. DISCUSSION Staff have initiated an application with the SWRCB for State Revolving Fund financing opportunities and inclusion on the State’s Intended Use Plan. The general application requires a City Council resolution authorizing a City representative to sign and file documents on behalf of the City. Because the Public Works Department oversees the City’s water system, the proposed resolution designates the Director of Public Works, or his or her designee, to apply for and execute documents related to SWRCB funding opportunities for the City’s Groundwater Supply Project. EQUITY AND SUSTAINABILITY The project supports the City's goal of providing safe, reliable drinking water while enhancing long-term water supply reliability, improving local water resiliency, and reducing dependence on imported water supplies. OUTREACH Not applicable, as this item is a routine matter of City business. STRATEGIC PLAN ALIGNMENT Approval of this action advances the citywide ONE Pleasanton Strategic Plan goal of Investing in Our Environment, Strategy 3 – Identify funding and implement the recommendations from the Water Supply Alternative Study to resolve PFAS-related water quality issues FISCAL IMPACT Approval of this item will authorize the City to pursue SWRCB funding and financing opportunities for the City’s Groundwater Supply Project, which is currently estimated to cost approximately $27.5 million. Approval of this resolution does not obligate the City to accept any funding or financing, authorize construction of the project, or commit City funds. Additional City Page 96 of 923