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THE CITY OF 13 <br /> CITY COUNCIL AGENDA REPORT <br /> pLEASANTON© <br /> December 21, 2021 <br /> Finance <br /> Operations Services Department <br /> TITLE: APPROVE RESOLUTION AUTHORIZING OPERATIONS SERVICES <br /> DEPARTMENT (OSD) TO APPLY FOR STATE DEPARTMENT OF WATER <br /> RESOURCES GRANT FUNDS FOR THE PFAS TREATMENT AND WELLS <br /> REHABILITATION PROJECT <br /> SUMMARY <br /> Per- and polyfluoroalkyl substances (PFAS) are unregulated contaminants of emerging <br /> concern in drinking water due to their health impacts and tendency to accumulate in <br /> groundwater. The United States Environmental Protection Agency (EPA) and California <br /> Division of Drinking Water (DDVV) have provided tentative schedules to begin <br /> regulating PFAS by establishing maximum contaminant levels (MCLs) for certain <br /> substances by late 2023 — early 2024. Through ongoing testing, the City has <br /> confirmed the presence of PFAS in its Wells 5, 6, and 8 groundwater supply <br /> facilities. On June 15, 2021, City Council received a presentation on and approved <br /> proceeding with final design of the PFAS Treatment and Wells Rehabilitation Project <br /> (Project). The goal of the Project is to rehabilitate and/or replace the existing well <br /> facilities and implement PFAS treatment to extend their useful lives as safe, reliable, <br /> and locally controlled sources of water. <br /> City Council also approved a funding plan for the design and construction of the <br /> Project (Funding Plan) on September 7, 2021. The Funding Plan identifies up to <br /> $31 .4 million to be financed with loans and grants. The Urban Community and <br /> Multibenefit Drought Relief (UCMDR) Program from the State Department of Water <br /> Resources (DWR) provides grant funding for drought and drinking water quality <br /> improvement projects. The proposed resolution authorizes staff to apply for DWR <br /> grant funds as well as designates the Director of Operations and Water Utilities as <br /> the City's authorized representative to sign and file the financing application on <br /> behalf of the City. <br /> RECOMMENDATION <br /> Staff recommends that City Council adopt the attached resolution (Attachment 1) <br /> authorizing the Operations Services Department (OSD) to apply for DWR grant funds <br /> for the PFAS Treatment and Wells Rehabilitation Project. <br /> FINANCIAL STATEMENT <br /> The DWR grant application and project documentation process requires staff to develop <br /> and submit various technical and environmental packages to DWR that are the same <br /> requirements to apply for a DWR loan. The recently approved contract with Carollo <br />