CITY COUNCIL REGULAR MEETING AGENDA PACKET 9-1-26

Attachment 1 5298389.1 GROUNDWATER SUPPLY FACILITY DESIGN, CONSTRUCTION AND OPERATION AGREEMENT This Groundwater Supply Facility Design, Construction and Operation Agreement (“Agreement”) is entered into and effective this __ day of _________, 2026 (“Effective Date”) by and between Alameda County Flood Control and Water Conservation District, Zone 7 (“Zone 7”) and the City of Pleasanton (“City”). Zone 7 and City are each sometimes referred to herein as a “Party” or, collectively, as the “Parties”. RECITALS A. Zone 7’s mission is to deliver safe, reliable, efficient and sustainable water and flood protection services to customers within its service area. B. In order to do this, Zone 7 must develop a diversified water supply plan and implement supported projects and programs. C. Because Zone 7’s primary water supply is heavily dependent on water from the State Water Project, and that supply has become increasingly unreliable due to aging infrastructure, climate change, and increasingly stringent regulations resulting from declining ecosystem conditions, Zone 7 seeks to develop other supply and storage to increase the proportion of its portfolio that comes from local sources. D. In addition to its role and mission as water supplier to its customers, Zone 7 is the designated Groundwater Sustainability Agency (GSA) in charge of managing the Livermore Valley Groundwater Basin (“Main Basin”). E. Zone 7 is therefore responsible for ensuring that the development of the groundwater supply within the Main Basin complies with the principles of the Sustainable Groundwater Management Act (SGMA), including Safe Yield. F. City purchases a water supply from Zone 7 pursuant to that certain Contract Between Zone 7 Water Agency and City of Pleasanton for a Municipal & Industrial Water Supply (“Supply Contract”, a copy of which is attached hereto as Exhibit “A”) entered into on or about July 7, 2026. G. The Supply Contract provides for the City’s extraction and conveyance of groundwater from the Main Basin up to a “Groundwater Pumping Quota” (GPQ), as that term is defined in the Supply Contract. H. In 2022, the City’s existing wells were taken offline as a result of PFAs contamination in the surrounding basin, resulting in the City no longer being able to access its GPQ. I. With the understanding that the Groundwater Supply is limited by the GPQ, which is governed more generally by SGMA, the Main Basin’s Groundwater Sustainability Plan (GSP), the Supply Contract, and associated projects and limitations on pumping, the Parties have agreed to construct additional groundwater wells and accompanying infrastructure for the delivery of the Page 271 of 344