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John Jermanis February 11, 2002 Page 7 2. The City would lose its policy -making influence as a wastewater processor, and would generally be restricted to voicing its concerns through EBMUD. As the importance of environmental matters affecting health of the San Francisco Bay escalate, the City's ability to influence those decisions would be diminished considerably. 3. At present the City takes pride in the fact that its treated effluent is three times better than the minimal level required under the NPDS permit granted to EBDA. As an EBMUD client the City would lose control over the quality of effluent it pumps into Bay waters. 4. The City would close down a viable, effective treatment plant and lay off a group of valuable, well -trained, effective and credentialed Plant employees. 5. Once shut down, the City's WPCP would become inoperable and could not be restored in the future if the City decided it preferred to re-enter the wastewater treatment business. 6. Due to the condition of the City's collection system, increased levels of intrusion and inflow will increase the volume of wastewater delivered to EBMUD resulting in increased treatment costs that are not reflected in the relatively static economic analysis reviewed above. 7. Future significant increases in treatment standards can be mitigated partially by cost sharing with EBDA members for treatment process improvements on the combined EBDA effluent. Comparison of EBMUD and San Leandro Industrial Rates One of the issues that triggered the review of alternative treatment options was the belief that San Leandro sewerage rates are higher than those charged in Oakland (EBMUD treatment and City of Oakland collection) and for the ratepayers in Oro Loma. In fact, San Leandro residents pay treatment and collection rates that in between the rates paid by Oro Loma and Oakland ratepayers. The following table illustrates this difference: Monthly Single Family Sewerage Rates Oakland/EBMUD Oro Loma San Leandro Treatment $16.60 $12.34 Collection 11.89 4.56 Total $28.49 $9.42 $16.90 The differences between Oakland and San Leandro rates shown above are even more pronounced for multi -family residential uses. San Leandro and Oro Loma use the same basic approach for industrial users, and the resulting rates are higher than the industrial rates charged in Oakland for some users. San Leandro's rates are designed to allocate the costs of service fairly to all classes of user in the City. Industrial rates in most jurisdictions, including San Leandro, are calculated 2`75