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CITY OF SAN LEANDRO STAFF REPORT DATE: February 11, 2002 TO: John Jermanis, City Manager BY: Ed Schilling, Assistant City Manner SUBJECT PROJECT/PROJECT DESCRIPTION: Evaluation of Wastewater Treatment Alternatives SUMMARY AND RECOMMENDATION APPROVED AND M0 FORWARDED 00,2—,')0 TO CITY COUNCIL (Ig55 Jo ermanis, City Manager City staff has analyzed the proposal described in the enclosed letter dated October 24, 2001 from East Bay Municipal Utilities District (EBMUD) and, for the reasons detailed in the Analysis section of this Memorandum, recommends that the City decline the EBMUD proposal and confirm the City's intention to continue operating the San Leandro Water Pollution Control Plant for the foreseeable future. BACKGROUND For the past few years the City has considered the desirability of removing its Water Pollution Control Plant (WPCP) from operation and discharging its untreated wastewater to either the Oro Loma Sanitary District (Oro Loma) or the East Bay Municipal Utility District (EBMUD) for treatment. In 1995 a "Financial Evaluation of Cost of Service Alternatives for the San Leandro Wastewater Treatment System" (the "1995 Report") concluded that it would cost the ratepayers more to transfer wastewater treatment to either Oro Loma or EBMUD than it would to continue providing treatment through the WPCP. The 1995 Report was prepared by the consulting firm of Barakat & Chamberlin, Inc. HDR Engineering was retained in 1999 to update the 1995 Report. This update included the solicitation of new proposals from Oro Loma and EBMUD, and resulted in four alternative scenarios: • Scenario 1 — Status quo • Scenario 2A — Connecting to Oro Loma via a 25% ownership • Scenario 2B — Connecting to Oro Loma via a lease • Scenario 3 — Connecting to EBMUD via a lease. �2 ('04