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Directors took action to proceed with the final design of their COL PFAS Treatment <br /> Facility. <br /> • Abandon City well(s) and offset with increased water supply from Zone 7 — <br /> Approximately 80 percent of the City's water supply is purchased from Zone 7. The <br /> remaining 20 percent of water supply comes from the City's groundwater allotment. <br /> Zone 7 has indicated that the City's use of groundwater allotment is factored into <br /> their regional management of water supply during drought and emergency <br /> conditions (i.e., limited availability of surface water from the State Water Project) and <br /> regional management of groundwater quality. To offset the City's groundwater <br /> production without regional impacts, Zone 7 would need to construct additional <br /> groundwater pumping capacity and potentially transmission improvements. Further <br /> pursuit of this alternative would require a technical evaluation by Zone 7 to define <br /> these improvements and capital costs, which would be in addition to annual water <br /> purchase costs. Additionally, discussions would be required between the City and <br /> Zone 7 on the topics of governance. In the long-term, this alternative would reduce <br /> the City's regulatory compliance risks associated with being a water supplier at the <br /> expense of a reduction in local control. <br /> CONCLUSION <br /> Staff recommends finalizing the Draft BODR based on the preliminary findings and <br /> recommendations summarized in this staff report. Additionally, staff recommends <br /> proceeding with the final design phase for the Project including supporting field <br /> investigations, permitting, and California Environmental Quality Act (CEQA) report <br /> preparation. Next steps include selection of a design consultant, followed by <br /> authorization to execute an agreement at a future City Council meeting. During the final <br /> design phase, staff will continue to monitor developments in PFAS regulations and <br /> regional activity and provide updates to City Council prior to authorization requests to <br /> proceed with Project construction and related equipment procurement. Lastly, staff will <br /> draft a financing plan for review by the Council Water Subcommittee prior to City <br /> Council review and adoption. <br /> Submitted by: Fiscal Review: Approved y: <br /> /,/‘ <br /> Kathleen Yurchak Tina Olson Nelson Fialho <br /> Director of Operations and Director of Finance City Manager <br /> Water Utilities <br /> Attachment: <br /> 1. Draft BODR Executive Summary <br /> Page 4 of 4 <br />