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CITY OF SAN LEANDRO <br />STAFF REPORT <br />DATE: June 21, 2010 <br />TO: Stephen Hollister, City Manager <br />FROM: Michael Bakaldin, Public Works Director n~$ <br />BY: Dean Wilson~4W1~~IVlanager <br />SUBJECT PROJECT/PROJECT DESCRIPTION: <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL - <br />tephen Hollister <br />City Manager <br />MATTER OF RECEIPT OF PROTEST BALLOTS REGARDING SEWER RATE INCREASE <br />AND CONSIDERATION OF WASTEWATER DISCHARGE FEE INCREASE <br />SUMMARY AND RECOMMENDATION <br />Should the City receive protest ballots from less than 50% of the affected property owners, staff <br />recommends that the City Council take actions to adopt the proposed Wastewater Discharge Fee <br />increase, approving resolutions that: <br />• Adopt rates as detailed in the Prop. 218 Notice of Proposed Sewer and Wastewater <br />Treatment Rate Increase; <br />• Amend San Leandro Administrative Code Title 6, Chapter 4, Wastewater Discharge Fees <br />for FY 2010-2011; and <br />• Amend San Leandro Administrative Code Title 12, Chapter 5, Uniform Wastewater <br />Discharge Regulations. <br />BACKGROUND <br />Analysis <br />The plant has been in continuous operation since 1939 and several structures have reached the <br />end of their useful life. Recent studies of the treatment plant have shown that several facilities <br />require upgrades, rehabilitation and replacement. It also became clear that reserves were not <br />adequate to fund these improvements using pay as you go, and that it was more cost effective to <br />design and construct the necessary improvements as one large, coordinated project. In August <br />of 2009, Carollo Engineers completed a Water Pollution Control Plant Rehabilitation Project <br />pre-design as a master planning guide prior to the final design, which is now underway. Staff <br />reviewed and has value engineered the project during pre-design, reducing the engineer's cost <br />estimate from $56 million to $46 million. Project. construction bids could result in another 20% <br />reduction because of the favorable bidding environment. Currently, the State Revolving Fund <br />(SRF) loan interest rate for funding a majority of this project is less than 3%, resulting in a <br />savings of $30 million over the life of the loan, compared to conventional bond financing. The <br />