CITY COUNCIL REGULAR MEETING AGENDA 9-15-26

Page 1 of 3 Item #15 CITY COUNCIL AGENDA REPORT September 15, 2026 Public Works - Utilities Division TITLE: AUTHORIZE FUNDING FOR THE PRELIMINARY DESIGN AND OWNER'S REPRESENTATIVE SERVICES FOR THE REGIONAL GROUNDWATER DEVELOPMENT PROJECT WITH ZONE 7 SUMMARY On September 1, 2026, the City Council approved an agreement with Zone 7 Water Agency (Zone 7) for the design, construction, and operation of a joint Regional Groundwater Development Project. Under the agreement, Zone 7 will serve as the lead agency for Project delivery, with a target operational date of December 2029. The Project will be delivered using the Progressive Design Build (PDB) method, which allows the design team and contractor to collaborate during design development and establish a guaranteed maximum price before construction. Zone 7 has selected Luhdorff & Scalmanini, Consulting Engineers (LSCE) for preliminary design and owner's representative services to support procurement of a PDB contractor for a cost not to exceed $2.25 million,The City’s share of these services is $810,000 and requires funding authorization by Council per the Zone 7 and City agreement. BACKGROUND Historically, approximately 20 to 25 percent of Pleasanton's water was provided by groundwater wells. However, in 2022, the City took these wells offline after detecting PFAS. In 2024, the City Council approved an agreement with Zone 7 to evaluate the feasibility of a Joint Groundwater Wells Project. The feasibility study (Phase I) was completed in 2025 and identified Pleasanton Tennis and Community Park and Hansen Park as feasible locations for new groundwater wells. On April 21, 2026, the City Council directed staff to proceed with a joint project with Zone 7, and draft an agreement for Phase II (Design and Construction), and Phase III (Operations) of the new facilities. On September 1, 2026, the City Council approved an agreement with Zone 7 Water Agency (Zone 7) for the design, construction, and operation of a joint Regional Groundwater Development Project. The agreement establishes cost- sharing terms under which the City will fund 36 percent of the wells and raw groundwater pipelines and 23 percent of the Hopyard Chloramination Facility upgrades. Zone 7 will fund the remaining costs. On August 19, 2026, the Zone 7 Board of Directors authorized its General Manager to negotiate, execute a contract with Luhdorff & Scalmanini, Consulting Engineers (LSCE), not to exceed $2.25 million, for preliminary design and owner's representative services to support procurement of a Progressive Design Build (PDB) contractor. The City’s share of these services is $810,000 and requires funding authorization by Council per the Zone 7 and City agreement. The City’s estimated Project cost is $29.0 million, including City-funded distribution system Page 128 of 318