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John Jermanis <br />February 11, 2002 <br />Page 4 <br />Additionally, EBMUD would pay to the City a pre -paid lease amount of $5,000,000 for <br />EBMUD's use of the City headworks as a site for pumps to send untreated waste through <br />the new force main described above. <br />Finally, the City has already set aside in its capital improvement budget just over <br />$1,000,000 of WPCP projects that would not have to be completed if the Council chose <br />to enter into the contractual relationship with EBMUD. <br />The line graph which follows illustrates the "Cost Comparison of Wastewater Treatment <br />between EBMUD and San Leandro." A spreadsheet with the detailed 30 year financial <br />information from which the graph was taken follows as Appendix A. <br />Comparison of EBMUD and CSL <br />Treatment Costs <br />o <br />$15,000,000 - - <br />E $10,000,000 Cn <br />- -- - � <br />_ r <br />o $5,000,000----r~-- - <br />01, Oh 02' ,�'� ��` �1 `10 r13 `Lr° ` - <br />�O�O rO TO TO �O TO <br />Fiscal Year <br />EBMUD per year - - - CSL per year <br />In strictly economic terms, the present value of savings available to the City over a 30 <br />year contract period is estimated at $9.3 million. The components of this total are as <br />follows: <br />Pre -paid rent $5,000,000 <br />Capital improvement savings 1,000,000 <br />Estimated savings in treatment costs 3,312,876 <br />$9,312,876 <br />You will note that this number is significantly lower than the number ($24 million) in the <br />October 25 letter from EBMUD. The difference results from two factors: an error in the <br />a`7 � <br />