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THE CITY OF 15 <br />CITY COUNCIL AGENDA REPORT <br />PLE SANTON® <br />November 16, 2021 <br />Finance <br />Operations Services Department <br />TITLE: APPROVE RESOLUTION AUTHORIZING OPERATIONS SERVICES <br />DEPARTMENT (OSD) TO APPLY FOR STATE WATER RESOURCES <br />CONTROL BOARD 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 (DDW) 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 preferably with a State Revolving Fund (SRF) loan from <br />the State Water Resources Control Board (SWRCB). The proposed resolution <br />authorizes staff to apply for SWRCB loan funds as well as designating the Director <br />of Operations and Water Utilities as the City's authorized representative to sign and <br />file the financing application on 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 SWRCB funds for <br />the PFAS Treatment and Wells Rehabilitation Project. <br />FINANCIAL STATEMENT <br />Carollo Engineers, the firm who prepared the Basis of Design Report for the Project, will <br />assist staff with preparing the technical and environmental packages that SWRCB <br />requires as part of the application process. The estimated cost of that assistance is <br />$50,000 and will be funded through the Capital Improvement Program (CIP) Project <br />21166 final design allocation, which has already been approved by Council. <br />