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BACKGROUND On March 15, 2022, City Council approved the Agreement between the City of Pleasanton, City of Livermore, and DSRSD and authorized funding for the Temporary Joint Residential Recycled Water Fill Station. Following each agency's adoption of the Agreement, DSRSD advertised for the construction of the project and received two bids on March 29, 2022. The low bid was more than the engineer's estimate of $970,000 used to estimate project funding, approved by Council at its March 15 meeting. Per the Agreement, construction and operation costs of the Fill Station are to be shared equally by the agency partners (Agencies). Staff is requesting that City Council authorize an additional $156,000 from the Water Enterprise Reserve for Pleasanton's portion of the Fill Station project. DISCUSSION The Fill Station is for residential users during periods of mandatory potable water conservation for irrigation. The scope of work includes clearing, grubbing, and grading of approximately 1.5 acres, and connections to DSRSD's existing recycled water distribution system. The construction of the Fill Station will consist of new plumbing improvements for 40 hose connections to support filling operations, new driveways to enter and exit the site, signage, and pervious pavement and surface drainage facilities. DSRSD facilitated the bid process and solicited bids from March 17 through March 29, 2022. DSRSD received two bids ranging from $1,466,292.91 to $1,748,260. The engineer's estimate for the project was $970,000. The low bid was received from Marshall Brothers Enterprises, Inc. and contained no irregularities. Review of the bid details shows that costs for pervious pavement and piping were higher than the engineer's estimate. Per the Agreement, all costs associated with the Fill Station are to be shared equally by the Agencies. The total project cost for construction and operation is $1 ,766,292 ($1 ,466,292.91 for construction and $300,000 for the first year of operations). Pleasanton's portion of the project including the additional $156,000 for construction is $588,764. Revenue generated by the "season pass" of $150 will offset project expenses. Below is a table with a range of pass sales from 2,500 to 12,000, demonstrating the project's breakeven point per the number of passes per year. # of Passes Per # of Years to Break Year Even 2,500 14 3,600 5 5,000 3 7,000 2 12,000 1 Page 2 of 3