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BACKGROUND On September 6, 2022, the City Council authorized staff to suspend the PFAS Treatment and Wells Rehabilitation Project, and to further evaluate water supply alternatives for the portion of water supply currently sourced via the City's groundwater pumping quota (3,500 acre-feet/year). On October 18, 2022, the Council established a new Capital Improvement Project for the development and analysis of water supply alternatives. The need for the water supply alternatives evaluation is driven by increasing costs for PFAS treatment and regulatory uncertainty. Two categories of water supply alternatives will be considered: alternatives that continue to utilize the City's groundwater quota such as new City wells located in areas without PFAS, and alternatives that do not continue to utilize City's groundwater quota such as purchasing 100 percent of pumping quota. This project includes an agreement with Brown and Caldwell to perform the development and analysis of water supply alternatives and as- needed legal services to review to existing water supply agreement(s) as well as a legal analysis of the City's pumping quota, that will require continuous consultation throughout the project DISCUSSION The Water Supply Alternatives Ad Hoc Subcommittee, comprised of two members of the City Council, would work with staff on the Water Supply Alternatives Project and periodically issue reports and updates to the City Council. Given the time sensitive nature of the Water Supply Alternatives Project, it is recommended that the two members of the City Council currently serving on the Zone 7 Liaison Committee, Mayor Brown and Council Member Narum, be initially appointed to this ad hoc subcommittee through the end of 2022 after which new Council committee assignments will be made for 2023. Jointly Submitted and Approved by: i;, - -r Daniel G. Sod gren Gerry Beaudin City Attorney City Manager Page 2 of 2