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With regulatory trends growing more stringent relating to PFOA and PFOS, there is concern about the long-term feasibility of Well 5, 6, and 8 continuing to be a viable source of water. Even if at a regional water supply level it is determined that additional water from Zone 7 is available to offset that lost from Well 5, 6, and 8, the City's distribution system needs to be analyzed to determine if any infrastructure improvements are required to distribute that water from different source locations. Staff recommends that this analysis be included with the upcoming water capacity evaluation efforts by the City. The City last completed a water capacity evaluation of its system in 2004. Therefore, as part of the CIP FY19/20, staff included a budget of$400,000 to complete a new study which will include the use of a consultant. When establishing the budget, staff did not include performing these PFOA and PFOS alternative impact runs. Additional funding may be required but will be determined during the consultant selection process. Staff estimates the overall schedule for the evaluation to be two years. However, it is estimated that the hydraulic model and initial analysis under existing conditions to determine the impacts of loss of Wells 5, 6, and 8 can be expedited to be completed within approximately one year. 3. Incorporate potential financial impacts of PFOA and PFOS regulations into Water Rate Study. The O&M cost to currently supply water from the City's groundwater supply is significantly lower than the cost to purchase water from Zone 7. Therefore, whether the solution to address future PFOA and PFOS regulations is through added treatment at Well 5, 6, and 8, or by offsetting the use of those wells with Zone 7 water, an increase to the City's water operating expenses will be realized. In addition, capital improvements to varying extents will be required for both solutions. Staff is currently in the beginning phases of the 2020 Water and Sewer Rate Study. It is recommended that the impact of PFOA and PFOS regulations be included in the study. The Water and Sewer Operational Funds have budgeted $120,000 during FY19/20 and the study is scheduled to be completed by April 2020. 4. Increase resources for legislative tracking both for future Response Level changes and establishment of MCLs To date, the regulatory changes related to PFOA and PFOS have been quick, have not always followed traditional water quality regulatory framework, and have had major operational consequences. Increasing legislative tracking resources will allow the City to stay more informed on the specifics of what regulations are being considered to potentially have influence over those regulations (particularly in the review of the scientific establishment of Response Levels, PHGs and the establishment of technologically and economically feasible MCLs), and to be better prepared when those regulations are put in place. Staff will be working with legislative consultant Townsend and Associates, as well as becoming members of the Association of California Water Agencies (ACWA) and California Association of Sanitation Agencies (CASA) to implement this recommendation. Page 12 of 13