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THE CITY OF 15 CITY COUNCIL AGENDA REPORT PLE SANTON® November 16, 2021 Finance Operations Services Department TITLE: APPROVE RESOLUTION AUTHORIZING OPERATIONS SERVICES DEPARTMENT (OSD) TO APPLY FOR STATE WATER RESOURCES CONTROL BOARD FUNDS FOR THE PFAS TREATMENT AND WELLS REHABILITATION PROJECT SUMMARY Per- and polyfluoroalkyl substances (PFAS) are unregulated contaminants of emerging concern in drinking water due to their health impacts and tendency to accumulate in groundwater. The United States Environmental Protection Agency (EPA) and California Division of Drinking Water (DDW) have provided tentative schedules to begin regulating PFAS by establishing maximum contaminant levels (MCLs) for certain substances by late 2023 — early 2024. Through ongoing testing, the City has confirmed the presence of PFAS in its Wells 5, 6, and 8 groundwater supply facilities. On June 15, 2021, City Council received a presentation on and approved proceeding with final design of the PFAS Treatment and Wells Rehabilitation Project (Project). The goal of the Project is to rehabilitate and/or replace the existing well facilities and implement PFAS treatment to extend their useful lives as safe, reliable, and locally controlled sources of water. City Council also approved a funding plan for the design and construction of the Project (Funding Plan) on September 7, 2021. The Funding Plan identifies up to $31.4 million to be financed preferably with a State Revolving Fund (SRF) loan from the State Water Resources Control Board (SWRCB). The proposed resolution authorizes staff to apply for SWRCB loan funds as well as designating the Director of Operations and Water Utilities as the City's authorized representative to sign and file the financing application on behalf of the City. RECOMMENDATION Staff recommends that City Council adopt the attached resolution (Attachment 1) authorizing the Operations Services Department (OSD) to apply for SWRCB funds for the PFAS Treatment and Wells Rehabilitation Project. FINANCIAL STATEMENT Carollo Engineers, the firm who prepared the Basis of Design Report for the Project, will assist staff with preparing the technical and environmental packages that SWRCB requires as part of the application process. The estimated cost of that assistance is $50,000 and will be funded through the Capital Improvement Program (CIP) Project 21166 final design allocation, which has already been approved by Council.