JOINT POWERS FINANCING AUTHORITY AGENDA PACKET 9-15-26

23 THE WATER SYSTEM General The City owns and operates a potable (i.e. drinking) water system under permit from the State Water Resources Control Board Division of Drinking Water (DDW) that serves approximately 22,000 customers. The City’s water supply historically comes from wholesale purchases from Zone 7 Water Agency (Zone 7) and a groundwater production quota (GPQ) of 3,500 acre-ft/year (representing approximately 25 percent of the City’s total supply needs). The City is currently not utilizing its GPQ because all its groundwater wells are out of service. Instead, the City is purchasing 100 percent of its water from Zone 7 at the wholesale rate. The City also owns and operates a separate recycled water system that serves 98 user sites consisting of 151 metered connections. The City’s recycled water supply is purchased primarily from the DSRSD-EBMUM Recycled Water Authority (DERWA) and, secondarily, from the City of Livermore. Recycled water is tertiary treated wastewater that can be used for non- potable purposes such as landscape irrigation. The City’s Department of Public Works is responsible for the operation, maintenance and improvement of the Water System. Service Area The City is located in Amador Valley and is a suburb in the East Bay region of the San Francisco Area. It is bound by the City of Dublin on the north, by the City of Livermore on the east, by the unincorporated community of Sunol to the south, and by the Pleasanton Ridge to the west. The City’s water service area includes customers within the City Limit and customers outside the City Limit that hold Out-of-Area Service Agreements (OASAs). Areas with OASAs include Remen Tract, Happy Valley, and Kilkare (north of the Town of Sunol). The Water System presently serves a population of approximately 76,000. . Physical Assets Zone 7 Turnouts. Treated potable water from Zone 7 enters the City’s distribution system at seven different turnout locations. All turnouts are equipped with City facilities to fluoridate the treated water prior to entering the potable water distribution system. Turnouts 1 through 5 directly connect to the potable water distribution system, while Turnouts 6 and 7 have City pump stations that boost pressure into the potable water distribution system. Turnout 4 is currently being upgraded with a booster pump station and is projected to come online at the end of 2026 / early 2027. Groundwater Wells. The City owns and operates three groundwater wells in the local groundwater basin, the Livermore Valley Main Groundwater Basin (the “Main Basin”) an area that covers 69,600 acres (109 square miles). Water from the City’s wells is treated with chlorine, ammonia, and fluoride at the well sites prior to entering into the water distribution system. The three City groundwater wells have not been in operation since November 2022 based on results from testing for per- and polyfluoroalkyl substances (PFAS). Since that time, the City has been purchasing 100 percent of its water supply through Zone 7. The three groundwater wells remain assets of the City. See “-Regulatory Requirements.” Page 151 of 205