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BACKGROUND <br /> DSRSD and the City entered into the Third Supplemental Agreement to the Wastewater <br /> Disposal Service Agreement on November 19, 2002. The Third Supplemental <br /> Agreement pertains to the provision of recycled water and contains three key elements: <br /> 1)establishes the City's rights to all secondary effluent attributable to the City's <br /> sewerage service area for the City's use for the production of recycled water; 2)City's <br /> and DSRSD's intent to plan for production of additional recycled water from the regional <br /> treatment plant and to make recycled water in excess of the City's or DSRSD's needs <br /> available for use by third parties; and 3)allows the DSRSD to utilize up to 2.5 million <br /> gallons per day (mgd) of the City's secondary effluent to meet the requirements of the <br /> Dublin San Ramon Services District and East Bay Municipal Utility District Recycled <br /> Water Association's (DERWA) project needs through December 31, 2009. The Fourth <br /> Supplemental Agreement will not change any of the City's rights established under the <br /> Third Supplemental Agreement and only extends for two years to December 31, 2011, <br /> the utilization of its excess effluent by a third party (DERWA), as agreed in the Third <br /> Supplemental Agreement. Staff along with DSRSD staff presented this item to the <br /> DSRSD /Pleasanton Liaison Committee (Liaison Committee) and received a unanimous <br /> support by the committee to recommend approval of the Fourth Supplemental <br /> Agreement by their respective legislative bodies. Council members Thorne and <br /> McGovern are the Pleasanton representatives on the Liaison Committee. <br /> DISCUSSION <br /> The City is currently preparing environmental documents to provide for the use of <br /> recycled water within the City and specifically for the Staples Ranch project. Staff has <br /> also been in discussions with DSRSD regarding ways that the City can bring recycled <br /> water to its customers. However, while discussions are progressing well, additional <br /> information is required before staff can bring forth for the Council's consideration a <br /> recycled water program. In light of this, DSRSD and City staff thought it was prudent to <br /> extend the current agreement (the Third Supplemental Agreement) by two years to <br /> December 31, 2011. Currently DSRSD uses approximately 1.5mgd of the authorized <br /> 2.5mgd of the City's secondary effluent for the DERWA project. <br /> Sub a y: Fiscal Review: Approve by: <br /> Asti <br /> Q l iSt) -c-A, <br /> Daniel Smi h David P. Culver Nelson Fialho <br /> Director o Operations Services Director of Finance City Manager <br /> Page 2 of 2 <br />