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original construction costs. That's the most advantageous to the City. The City of San <br />Leandro paid a much higher percentage of construction costs than the other agencies for <br />the amount of capacity that was actually obtained. Under a capacity basis, if that had <br />been the way the split had been made, the City would have received less of the $lOM. <br />As it stands now, out of the $ lOM the City of San Leandro would get 14.8 percent. The <br />initial payment of $3M would be paid at such time as the contract becomes formal. In <br />the interim, prior to that contract actually being signed - or the agreement actually being <br />signed, these cities and agencies in EBDA will receive an interest payment on that $3M <br />until it is paid. There is a final date of November 19, 1998 that they must enter into the <br />agreement prior to that. But, in the meantime, they would be paying interest on the $3M <br />from October 1, 1997. The term for the payment of the additional $7M has been <br />lengthened. Originally it was fora 20 year term. It is now 30 years that it would be <br />paid over. The interest rate is variable interest rate - 3 % to 6 % based on the San <br />Francisco CPI. The interest payments would be paid in July on an annual basis. One <br />of the interesting aspects of this, that most of you are probably not aware of, is that <br />EBDA actually has a termination date prior to the termination of the agreement. The <br />idea is that something is going to happen. EBDA is not going to just walk away and <br />leave a pipeline and all the facilities. There will be some other agreement that will have <br />to be entered into by the current five member agencies to extend EBDA as EBDA or <br />another agency. One of the hopes that has always been had, at least on the part of the <br />local managers of the five agencies, has been that at some future date EBDA will be <br />reconstituted and LAVWMA would come in as a member. It makes more sense. Let <br />them buy capacity -whatever we need to do - to make it work. It just makes sense to <br />October 20, 1997 -Verbatim Transcript, Item 6.A 6 <br />