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BACKGROUND The Castlewood Service Area (CSA) consists of 587 acres in the unincorporated area of Alameda County (County) located southwest of the City of Pleasanton along the Arroyo de la Laguna. The CSA encompasses approximately 190 single family residences and the Castlewood Country Club. CSA's sole source of water is provided by San Francisco Public Utilities Commission (SFPUC) via their Pleasanton Well Field and supply facilities. The CSA water system starts at SFPUC's Valley Reservoir. From there, the CSA water system splits into the Castlewood Country Club's irrigation system and the domestic water system. Under the current agreement, the City is not responsible for operation and maintenance of the irrigation system but is responsible for operation and maintenance of the domestic system. The domestic system consists of three storage tanks, two pumps stations, and one pressure regulating station. The sanitary sewer system that serves the CSA consists of approximately 28,000 feet of 6-inch and 8-inch sewage collection piping. The sewage collection piping drains into two main pipelines that terminate at a pump station on Foothill Road where it is then pumped to the Dublin San Ramon Services District Wastewater Treatment Plant. Under the current agreement, the City is responsible for operation and maintenance of the sanitary sewer system within the CSA. Through this Agreement, the City also provides customer support, utility billing, and capital project support. The City entered into an agreement with the County to provide operation and maintenance services for the water and sewer systems located in the Castlewood Service Area (CSA) on June 6, 2017. The first and second amendments to the agreement occurred on October 10, 2019, and April 30, 2020, respectively, to increase the contract total from $950,000 to $1,300,000. On May 3, 2021, the agreement was amended for a third time extending the term for six months and increasing the total contract value to $1,500,000. DISCUSSION In September 2021, the Alameda County Public Works Agency (ACPWA) issued a Request for Proposals (RFP) for Operation and Maintenance Services of Sewer and Water Systems in the Alameda County Service Area (CSA) R-1967-1 Castlewood. The City of Pleasanton Utilities submitted a proposal and was notified by ACPWA on November 16, 2021, that the proposal was rejected because the cost was too high. The County has indicated that it will reissue the RFP. The fourth and final amendment being recommended herein adds three months to the current contract term dated March 31, 2022 and increases the contract amount to $1 ,650,000, which allows the County time to issue a new RFP and select a new contractor for the operation and maintenance of sewer and water services for the Castlewood Service Area. Page 2 of 3