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SRN (F Notice of Proposed City of San Leandro o� 835 E. 14 Street Sewer and Wastewater Treatment San Leandro CA 94577 Rate Repurpose and Public Hearing ryCp9 PRRR7L 4 �$ The City of San Leandro may need to relocate or reconstruct City- maintained sewer mains to preserve public health and safety. Some rate payers may then need to reconstruct their private sewer laterals to reconnect to the City sewer mains. The City is considering reallocating a portion of the previously approved sewer and wastewater rate increase to reimburse rate payers for those reconstruction costs. There will be no rate increase as a result of this reallocation. The City operates and maintains Publicly Owned Treatment Works (POTW), on behalf of the rate payers. As the system has aged, repair and replacement is required. Under this proposed rate repurpose, property owners would be reimbursed the full cost of private lateral reconstruction to a newly constructed City main line. • The City has approximately 23 miles of sewer main that are partially or entirely located on private property. • Many of the sewer main components are 50 to 100 years old and were installed before adjoining properties were subdivided. • Approximately 500 residential properties could be impacted based on the proximity of sewer lines to structures. • Costs for new piping work required on private property vary widely by location, and are dependent on such factors as existing house plumbing, connection point to a new sewer main line and surface restoration. • The necessity to abandon and relocate a sewer main is rare, pursued only when there is a clear and present risk to public health and safety, and when all other reasonable solutions have been exhausted. • Rates adopted in 2010 are adequate to fund the reimbursement expense of any anticipated need to move sewer laterals to a newly constructed City main line. • If as many as one half of the 500 identified residential properties require lateral relocation, the total cost could be up to $4 million over the next 10 to 20 years. In accordance with Proposition 218 (Article XIIID of the California Constitution), this notice about the proposed rate repurpose is being sent to all property owners served by the City of San Leandro Water Pollution Control Plant (approximately 15,500). If more than 50% of property owners submit a written protest to the City during the 45 -day protest period that runs from October 5, 2011 to November 21, 2011, the City cannot change the original purpose and use of the previously approved rate increases until a new Prop. 218 notice for such rates is sent and the procedures detailed above re -done. If fewer than 50% of property owners submit a written protest within that time frame, the City has the discretion to change the purpose of the approved rate increases to cover the costs rate payers incur when they have to reconnect their private sewer laterals when the City relocates or reconstructs a City- maintained sewer main. The proposed repurposing of rates, if adopted, would be effective after December 1, 2011. If you do not agree with the proposed rate repurposing, you may submit a written protest letter or use the form on the back and deliver it in one of three ways: 1. Mail it to the San Leandro City Clerk, Wastewater Rates, 835 E. 14`t' Street, San Leandro CA 94577. It must arrive by 5 p.m., November 21, 2011. 2. Hand deliver your letter or the form below to the San Leandro City Clerk at 835 E. 14`t' Street, Room 205, San Leandro CA 94577, by 7 p.m., November 21, 2011. Bring your letter or the form below to: City Council Public Hearing 7 p.m. November 21, 2011 San Leandro City Hall 835 E. 14" Street, Council Chambers, San Leandro CA 94577 In order to be counted as a valid protest against the proposed rate repurposing, your letter or the form on back must include the Assessor's Parcel Number (on mailing label), the property address, and an authorized signature, and be delivered as outlined above. Only one protest is allowed per property. (continued on back)