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Minutes - San Leandro City Council Meeting - July 17, 1995 Page - 18 - NEW BUSINESS (continued) capacity to their economic best interest. LAVWMA is not proposing to buy additional capacity; 11 .42 mgd is the limit, but it is interruptible capacity. LAVWMA wants to purchase non-interruptible capacity or they will need to build storage facilities. It is in the long-term interests of the City to pursue the option to sell San Leandro's capacity because even if the City does not use its capacity, it is still required to payrits share of fixed costs. . Vice Mayor Kerr asked for an explanation of a chart on page 386 regarding LAVWMA Condition No. 9; Mr. Taylor said the chart related to discounting for maintenance and operation and was prepared by economists. Council Member Perry asked what is in the proposal for San Leandro. She said the last time the figure was higher, the contract was 20 years instead of 30, and the interest rate was 6% instead of 3%. She asked what other options LAVWMA has to obtain the capacity they need. Mr. Taylor said other options would be for LAVWMA not to grow, or to store for a longer period of time and bring it to EBDA through their 19 mgd capacity. He further described other options. In response to Council questions, Mr. Taylor said San Leandro currently has a 22 mgd capacity, but the Water Pollution Control Plant average dry weather flow is 4.5 mgd and the Plant is only permitted to 7.9 mgd. He said the LAVWMA proposal for uninterruptible capacity must be approved unanimously by the EBDA members. He said the proposal is that no single entity in EBDA could block the sale of capacity by any other member. Council Member Myers said the Council needs to tell its EBDA representative how to vote on Thursday. He said the Dublin-San Ramon Services District voted No. He said San Leandro should not be involved in trying to limit growth in the Valley. He said the LAVWMA proposal limits San Leandro from trying to sell its excess capacity. Mr. Taylor said the City would not be able to sell its excess capacity without the approval of the other agencies. Council Member Myers said he felt the City should vote No and continue to investigate other proposals. Wandzia Grycz-Hernandez, Assistant City Manager, said there are a number of outstanding issues including LAVWMA's request to obtain uninterruptible flow; the negative position of San Leandro if the proposal goes forward; whether the City would, in the future, be able to obtain five affirmative votes at EBDA regarding sale of excess capacity; and the Dublin-San Ramon Services District's No position on the proposal . She said the issues need to be resolved on the LAVWMA and EBDA side and advised the City Council to consider directing the City's EBDA Representative to go back to EBDA and indicate that the City is interested in continuing negotiations, obtaining information, and resolving outstanding issues.