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THE CITY OF 10 CITY COUNCIL AGENDA REPORT LE ASANTON© November 3, 2009 Operations Service Center TITLE: APPROVE FOURTH SUPPLEMENTAL AGREEMENT FOR WASTEWATER DISPOSAL SERVICES WITH DUBLIN SAN RAMON SERVICES DISTRICT SUMMARY Dublin San Ramon Services District (DSRSD) and the City entered into the Agreement for Wastewater Disposal Services (WDS Agreement) on September 2, 1997. The WDS Agreement provides for the contractual relationship between DSRSD and the City as it pertains to sewer services provided by DSRSD to the City's sewer customers. The City and DSRSD entered into the Third Supplemental Agreement to the WDS Agreement on November 19, 2002. The Third Supplemental Agreement pertains to the provision of recycled water and contains three key elements: 1)establishes the City's rights to all secondary effluent attributable to the City's sewerage service area for the City's use for the production of recycled water; 2)City's and DSRSD's intent to plan for production of additional recycled water from the regional treatment plant and to make recycled water in excess of the City's or DSRSD's needs available for use by third parties; and 3)allows the DSRSD to utilize up to 2.5 million gallons per day (mgd) of the City's secondary effluent to meet the requirements of the Dublin San Ramon Services District and East Bay Municipal Utility District Recycled Water Association's (DERWA) project needs through December 31, 2009. The Fourth Supplemental Agreement (Attachment A herein) will not change any of the City's rights established under the Third Supplemental Agreement and only extends for two years to December 31, 2011, the utilization of its excess effluent by a third party (DERWA), as agreed in the Third Supplemental Agreement. RECOMMENDATION Staff recommends the City Council authorize the Mayor to execute the Fourth Supplemental Agreement to Agreement for Wastewater Disposal Services with DSRSD. FINANCIAL STATEMENT All costs associated with the distribution of recycled water are borne by the customers of the DERWA project. The financial benefit of allowing DERWA to utilize up to 2.5 mgd of the City's secondary effluent is the reduction in electrical costs that would otherwise be incurred by DSRSD and passed on to the City's sewer customers for disposing of the secondary effluent through the LAVWMA pipeline to the Bay.