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SEP-28-98 MON 10:06 AM SAN LEANDRO PUBLIC WORKS FAX NO. 5103521192 P,05 Mike Oliver December 12, 1995 page 4 Additional work to determine more exact costs and to resolve policy issues doesn't appear warranted unless EBMUD and Oro Loma substantially reduces the amount of the buy -in fee and in Oro Loma's case, remove their requirement that no plant expansion be needed for treatment of San Leandro's wastewater. CONCLUSION - Two options for treatment of San Leandro wastewater have been analyzed and neither option will reduce current costs based on the buy -in fee provided by representatives of the agencies. At a meeting on December 8, the agency representatives indicated that there was flexibility in the amount and method of payment of the buy -in fee. Oro Loma Sanitary District has previously indicated that they would only be interested in treating City's wastewater if no plant expansion would be required. A review of Oro Loma's plant design and current loadings plus City loadings indicate that a modest plant expansion would be necessary. The cost of all investigations for the two options are currently being borne totally by the City.. The additional analysis and studies required to finalize a Service Agreement for Treatment of Wastewater with either of the two sewer agencies are not justified unless there is a change in the offers currently being considered. A formal offer on the amount of buy -in to be charged is needed from either or both agencies before additional studies are conducted. If Council wishes to proceed further towards developing a service agreement for treatment of the City's wastewater, I recommend that they direct the City Manager to send a letter to both agencies requesting their firm offer for the amount and terms of the buy -in fee they will require for treatment of City's wastewater. If Council determines that this analysis should be continued the following steps and schedule is recommended: 1. Letter to EBMUD and Oro Loma to obtain formal buy -in fee amount and schedule of payment with interest rate if required. (December 21, 1995) 2. Prepare new spread sheet using the amortized cost of the official buy -in. fee amount provided by EBMUD and/or Oro Loma. (February, 1996) 3. Schedule City Council work session to review revised spread sheet and determine Council interest in proceeding to develop answers to policy issues and implementation plan. (March, 1996.)