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ti City Council - 2 - October 15, 1997 water outfall. An agreement between LAVWMA and EBDA for additional capacity rights has been under discussion for more than a decade. Three years ago, EBDA and its member agencies submitted a formal offer with terms and conditions to LAVWMA which would allow capacity buy -in. Most of the terms and conditions were technical in nature and are not at issue. The major economic issue is the imposition of a capital buy -in fee of $10,000,000. The allocation of this fee back to EBDA member agencies would be on the basis of the agency's percentage of construction cost for the original project. This is the more advantageous basis for San Leandro. San Leandro's percentage of construction was 14.8 percent. LAVWMA would make an initial $3,000,000 payment. San Leandro would receive $444,000 as their portion of this initial payment. Initially, the remaining $7,000,000 would be paid with interest in equal installments over 20 years. This term has now been extended to 30 years. The interest rate varies between 3% and 6% and is based on the fluctuation in Consumer Price Index for the San Francisco bay area. The increased use of the EBDA system by LAVWMA will reduce the member agency assessments for fixed costs and maintenance and operations costs. San Leandro has also required in the draft agreement LAVWMA install landscape plantings and irrigation along LAVWMA's construction route on Lewelling Blvd in San Leandro. The City Council may wish to consider other mitigation measures such as the installation of a sound wall or bicycle path on each side of Lewelling blvd parallel to the construction project. Mitigation measures established by the Council would be included in an encroachment permit issued by the city at the time of construction. In February 1997, EBDA, with San Leandro City Council concurrence, submitted a final formal offer of terms to LAVWMA. This offer gave LAVWMA until June 1997 to respond or the offer would be removed from the table and further discussion would cease. A document entitled "Principles of Agreement for LAVWMA Expansion Project" was entered into by the negotiating members of LAVWMA on April 10, 1997. That document has now been approved by all LAVWMA members. Attorneys for LAVWMA and EBDA have prepared formal binding agreements for each agency. The draft agreement is attached for Councils information. Its language is subject to modification by EBDA's member agencies. In order to accommodate growth and disposal of this effluent, it will be necessary for the LAVWMA member agencies to do significant wastewater expansion. The Cities of Pleasanton and Livermore have agreed to take their wastewater expansion project to their respective voters at the earliest possible date, but no later than November 1998. In the event that a ballot measure fails in either city, the non -participating city may participate up to its share of average dry weather flow and peak wet weather capacity. 2 O