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is a need to start construction of this project this summer (in order to assure that all water facilities are on line by the summer of 2(07), staff is recommending that Council award the construction contract for the tank and rough-graded road at this time. Accordingly, staff is also recommending that Council direct staff to develop and return to Council a fmancing plan for the additional three related water facilities (and any other items of non-water related work within the VCSP). A discussion of the additional funding requirements that may be necessary and preliminary options to address these are discussed within this report. Honorable Mayor and Members of the City Council: BACKGROUND Utility System Requirements for the Vineyard Avenue Corridor Specific Plan (VCSP) Area When the VCSP was being developed in 1998-1999, City staff worked closely with the engineering consultants for the VCSP developers to determine the preliminary layout for the sewer and water system facilities necessary to serve the area. This effort determined the need for a number of new water and sewer facilities in the area, since the existing utility systems on either side of the VCSP area were either close to reaching, or had reached, their design capacities (as was the case for water facilities in the Ruby Hill and Vintage Hills areas) or were non-existent (in the case of sewer facilities in the area). These preliminary designs formed the basis for the Public Facilities section of the VCSP. The new water facilities necessary to serve the VCSP area included the enhancement of an existing, but standby, Zone 7 turnout (a turnout is a large metering and valve vault used to control and meter water deliveries from the Zone 7 transmission mains into the City's transmission and distribution system), construction of a new water booster pumping station (to be located on the same site as the Livermore Pleasanton Fire Department Station No.5) and a new water storage reservoir located at an appropriate elevation and size within the hills of the VCSP area. The reservoir would also need an access road. (See attached aerial map showing the tank site and other VCSP water facilities to be constructed.) All of these facilities, including the access road, need to be constructed in order to supply water to the developing VCSP area since the water facilities on either side of the area were unable to do so. That is, during the summer months, pumping stations on either side of the VCSP are overburdened, and have to use their spare or emergency pumps just to keep up with normal summer demands. Inadequate pumping and storage capacity in the developing VCSP area puts the City at risk, since it means the adjacent water systems experience a depletion of their fire, operational and emergency storage normally available in the storage tanks at all times. SR06:152 Page 3 of 13