CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: October 20, 2026
============================================================================================== To: Honorable Mayor and City Councilmembers
From: Oriana Hart, Public Works Director
Department: Public Works
Subject: FY 2026-27 Capital Improvement Program Amendment – Pleasant Hill Road Water System Connection Loop
============================================================================================== RECOMMENDATION(S):
That the City Council approve an amendment to the FY 2026-27 Capital Improvement Program (CIP) to transfer $76,690 from Project 0826-26.06, Automated Flow Meter at Corporation Yard Water Tower, to Project 0827-26.07, Pleasant Hill Road Water System Connection Loop, to increase funding available for design and project development of the Pleasant Hill Road Water System Connection Loop.
PROCESS OF AGENDA ITEM:
• Presentation of Agenda item by the Requestor or Responsible Department • Questions and Discussion from Councilmembers
• Public Comment Period
• Presentation Received
EXECUTIVE SUMMARY:
The adopted FY 2026-27 Capital Improvement Program includes funding for both the Automated Flow Meter at the Corporation Yard Water Tower and the Pleasant Hill Road Water System Connection Loop. The Automated Flow Meter at the Corporation Yard Water Tower project has $76,690 programmed in FY 2026-27. Staff is recommending that this funding be reallocated to the Pleasant Hill Road Water System Connection Loop to allow design of the project to begin during the current fiscal year.
The Pleasant Hill Road Water System Connection Loop is an important water system reliability project that consists of a new 16-inch water main connecting the Pleasant Hill tanks at Lynch Road to Pleasant Hill Road at Mitchell Court. The project is intended to improve system reliability and redundancy in an area where previous failures on Lynch Road have resulted in significant impacts to the City's water system. The proposed CIP amendment would allow staff to initiate design of the Pleasant Hill Loop during FY 2026-27 and advance the project to approximately 50 percent design. The remaining design work would then be completed using the $122,710 already programmed for the project in FY 2027-
28. This approach allows the City to begin the design process now rather than waiting until the next fiscal year and positions the project to be completed and ready for construction when funding becomes available.
There is no net increase in the Water Capital Fund as a result of this action. The proposed amendment simply shifts existing FY 2026-27 funding from the Corporation Yard Water Meter project to the Pleasant Hill Loop project.
BACKGROUND:
The City completed an update to its Water System Master Plan in 2026. The Water Master Plan evaluated the City's existing water sources, storage facilities, water quality, distribution system, existing and future demands, hydraulic performance, and fire protection system. Based on this analysis, the Plan identified recommended infrastructure improvements necessary to maintain and improve the reliability of the City's water system. The Water Master Plan identified fourteen recommended water distribution system improvements and ranked them from highest to lowest priority. The Pleasant Hill Loop was ranked No. 2 and designated a high-priority project, with a recommended start year of 2027. The Water Master Plan identifies the Pleasant Hill Loop as a critical component of the City's water distribution network because the existing water main in this area connects the City's two primary storage tanks that supply the Zone Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026
2 area. Due to the length and strategic location of this connection, a failure or disruption could affect water supply continuity and system pressure for a significant portion of the service area.
The City has also experienced failures on Lynch Road in the past. During previous water main breaks and maintenance activities, approximately 75 percent of the City's water network has been without supply. These events demonstrate the importance of improving redundancy and reliability in this portion of the system. The proposed Pleasant Hill Loop would provide a second route for water to reach the Zone 2 area. This additional connection would reduce the potential impact of a failure on one portion of the system and provide greater flexibility for future maintenance and emergency repairs. The adopted CIP includes the Pleasant Hill Road Water System Connection Loop as Project 0827-26.07. The project currently has $122,710 programmed for design and pre-construction activities in FY 2027-28 and $858,950 for construction, for a total project budget of $981,660.
DISCUSSION:
The City's 2026 Water Master Plan Update identified fourteen recommended improvements to the City's water distribution system and ranked the projects based on their importance to system reliability and water security. The Pleasant Hill Road Water System Connection Loop was identified as the second-highest priority water distribution project, with a recommended start year of 2027. The project consists of approximately 1,052 feet of new 16-inch water main connecting the Pleasant Hill tanks at Lynch Road to Pleasant Hill Road at Mitchell Court. The connection would provide a second route for supplying the Zone 2 service area and improve system reliability in the event of a failure, leak, or shutdown of the existing water main. The City has experienced previous failures on Lynch Road that have significantly affected the City's ability to supply the water system, demonstrating the importance of improving redundancy in this area.
The adopted Capital Improvement Program currently includes $122,710 for design and pre-construction activities for the Pleasant Hill Loop in FY 2027-28, with construction funding to follow. Staff recommends moving $76,690 currently programmed in FY 2026-27 for the Automated Flow Meter at the Corporation Yard Water Tower to the Pleasant Hill Loop project. This would allow staff to initiate design during the current fiscal year and advance the project to approximately 50 percent design. The $122,710 already programmed in FY 2027-28 would remain available to complete the design, permitting, bid documents, and other pre-construction activities necessary to position the project for construction.
This approach allows the City to begin work on a high-priority water system reliability project now rather than waiting until the next fiscal year to initiate design. Advancing the project over two fiscal years will allow staff to develop the project scope and cost estimate, identify permitting and environmental requirements, and ultimately have a shovelready project that can move efficiently into construction when funding becomes available. The proposed transfer does not increase the overall Water Capital Fund budget; it simply reallocates existing funding to advance a higher-priority project identified in the City's recently completed Water Master Plan. The Corporation Yard Automated Flow Meter project would be deferred and can be reconsidered as part of a future CIP or budget cycle.
STAFF ANALYSIS:
Staff recommends reallocating the $76,690 currently programmed for the Automated Flow Meter at the Corporation Yard Water Tower to begin design of the Pleasant Hill Road Water System Connection Loop. This recommendation is based on the City's recently completed Water Master Plan, which identified the Pleasant Hill Loop as the secondhighest priority water distribution improvement and recommended beginning the project in 2027. The Pleasant Hill Loop addresses a significant water system reliability and redundancy need. The existing configuration leaves the Zone 2 service area dependent on a single primary connection, and previous failures on Lynch Road have demonstrated the potential for substantial impacts to the City's water service. Constructing the proposed loop would provide an additional connection between the Pleasant Hill tanks and the distribution system, allowing water to reach the area through an alternate route when the existing main is out of service.
The adopted CIP currently schedules design of the Pleasant Hill Loop for FY 2027-28. Staff believes there is value in initiating the design during FY 2026-27 rather than waiting until the next fiscal year. The proposed transfer would provide Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026
sufficient funding to begin the design process and advance the project to approximately 50 percent design. The $122,710 already programmed for the project in FY 2027-28 would remain in place and be used to complete the design and pre-construction work. Advancing the project in this manner will allow the City to develop a complete project scope, refine the construction cost estimate, identify permitting and environmental requirements, and prepare the project for future bidding and construction. Having a shovel-ready project will also allow the City to move more quickly when construction funding is identified. The Corporation Yard Automated Flow Meter remains a beneficial project for improving water use monitoring at the Corporation Yard. However, the project can be deferred and reconsidered through a future CIP or budget process. Based on the priorities established in the Water Master Plan, staff recommends using the available FY 2026-27 funding to advance the Pleasant Hill Loop first.
This approach does not increase the City's overall Water Capital Fund expenditures. Instead, it allows the City to better align current-year spending with the priorities identified in the Water Master Plan while positioning a critical water system reliability project for construction in the future.
CITY COUNCIL GOALS/PRIORITIES/GENERAL PLAN CONSISTENCY:
This item represents the City Council goals/priorities as follows:
• Goal 1 – Community Vitality: Enhance Sebastopol as a great place to live that values community health and wellbeing; preserve unique character.
• Goal 3 – Infrastructure: Maintain high-quality facilities and services, including repairing/replacing outdated city facilities.
• Goal 4 – High Performance Organization: Restore public trust; improve public communications. • Goal 5 – Economic Development
PUBLIC COMMENT:
As of preparation, no written public comments received. Any comments received after distribution of the report will be provided as supplemental materials. Public comment will also be accepted during the meeting.
COMMUNITY OUTREACH:
This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. As of the writing of this staff report, the City has not received any public comment on this item. However, if staff receives public comment from interested parties following the publication and distribution of this staff report, such comments will be provided to the City Council as supplemental materials before or at the meeting. In addition, public comments may be offered during the public comment portion of this item.
FISCAL IMPACT:
The proposed CIP amendment has no net fiscal impact on the Water Capital Fund. Staff is proposing to reallocate the $76,690 currently budgeted in FY 2026-27 for the Automated Flow Meter at the Corporation Yard Water Tower to the Pleasant Hill Road Water System Connection Loop to initiate design. The $122,710 already programmed for the Pleasant Hill Loop in FY 2027-28 would remain unchanged and would be used to complete the design and preconstruction activities following the initial design phase.
Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026
The proposed funding allocation would be:
Project FY 2026-27
Current
Proposed
Change
FY 2026-27
Revised
Automated Flow Meter – Corporation Yard Water Tower $76,690 ($76,690) $0 Pleasant Hill Road Water System Connection Loop –
Design $0 $76,690 $76,690
RESTATED RECOMMENDATION:
Approve an amendment to the FY 2026-27 Capital Improvement Program to transfer $76,690 from the Automated Flow Meter at the Corporation Yard Water Tower project to the Pleasant Hill Road Water System Connection Loop project; CITY COUNCIL OPTION(S):
1. Approve the CIP Amendment with Alternative Direction: Approve the transfer of funding but provide alternative direction regarding the scope or timing of the Pleasant Hill Loop design.
2. Maintain the Existing CIP: Do not approve the proposed funding transfer and retain the $76,690 for the Automated Flow Meter at the Corporation Yard Water Tower project. Under this option, design of the Pleasant Hill Loop would begin as currently scheduled in FY 2027-28.
Approval Date: 09/22/2026
ATTACHMENTS:
1 - Resolution
APPROVALS:
Department Head Approval:
CEQA Determination (Planning): Approval Date: NA
The proposed action is Exempt from CEQA pursuant to §15306.
Administrative Services (Financial): Approval Date: 10/13/26 Costs authorized in City Approved Budget: Yes ☐ No ☐ N/A City Attorney Approval: Approval Date: 10/13/26
City Manager Approval: Approval Date: 10/13/26
Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026
CITY OF SEBASTOPOL
RESOLUTION NO. XXXX-2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTOPOL AMENDING THE FISCAL YEAR 2026-27
CAPITAL IMPROVEMENT PROGRAM TO REALLOCATE FUNDING FROM THE AUTOMATED FLOW METER AT THE
CORPORATION YARD WATER TOWER PROJECT TO THE PLEASANT HILL ROAD WATER SYSTEM CONNECTION LOOP
PROJECT
WHEREAS, The City Council of the City of Sebastopol adopted the Fiscal Year 2026-27 Capital Improvement Plan as part of the City's five year Capital Improvement Program; and WHEREAS, The adopted Fiscal Year 2026-27 Capital Improvement Program includes Project 0826-26.06, Automated Flow Meter at the Corporation Yard Water Tower, with $76,690 programmed in Fiscal Year 2026-27; and
WHEREAS, The adopted Capital Improvement Program also includes Project 0827-26.07, Pleasant Hill Road Water System Connection Loop, with $122,710 programmed in Fiscal Year 2027-28 for design and pre-construction activities; and
WHEREAS, The City's 2026 Water System Master Plan identified the Pleasant Hill Road Water System Connection Loop as the second-highest priority water distribution improvement and recommended initiating the project in 2027; and
WHEREAS, The Pleasant Hill Road Water System Connection Loop will provide an additional connection between the Pleasant Hill tanks and the Zone 2 distribution system, improving water system reliability and redundancy; and
WHEREAS, Reallocating the $76,690 currently programmed for the Automated Flow Meter at the Corporation Yard Water Tower will allow the City to initiate design of the Pleasant Hill Road Water System Connection Loop during Fiscal Year 2026-27 and advance the project to approximately 50 percent design; and WHEREAS, The $122,710 already programmed for the Pleasant Hill Road Water System Connection Loop in Fiscal Year 2027-28 will remain available to complete design, permitting, bid documents, and other pre-construction activities; and
WHEREAS, The proposed amendment does not increase the overall Water Capital Fund budget and instead reallocates existing Fiscal Year 2026-27 funding to advance a higher-priority water system reliability project. The Automated Flow Meter at the Corporation Yard Water Tower project may be reconsidered through a future Capital Improvement Program or budget process.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Sebastopol hereby approves an amendment to the Fiscal Year 2026-27 Capital Improvement Program to transfer $76,690 from Project 0826-
26.06, Automated Flow Meter at the Corporation Yard Water Tower, to Project 0827-26.07, Pleasant Hill Road Water System Connection Loop.
Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026
The above and foregoing Resolution was duly passed, approved, and adopted at a meeting by the City Council on the 20th day of October 2026.
I, the undersigned, hereby certify that the foregoing Resolution was duly adopted by the City of Sebastopol City Council by the following vote:
VOTE:
Ayes:
Noes:
Abstain:
Absent:
APPROVED: _______________________________________
Mayor Jill McLewis
ATTEST: _______________________________________________________________ Mary Gourley, City Manager
APPROVED AS TO FORM: __________________________________________________ Alex Mog, City Attorney
Agenda Item Number 11 Agenda Item Number 11
City Council Meeting Packet for October 20, 2026