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BACKGROUND <br /> Over the years, our staff has communicated with the County about maintenance <br /> alternatives for the Castlewood service area, including having the City provide ongoing <br /> maintenance and system improvements. The service area includes Castlewood Country <br /> Club and about 220 homes. Recently, staff met with the County and the Castlewood <br /> Homeowners Association to discuss maintenance issues and staff recommended that the <br /> County secure the services of a qualified consultant to evaluate system status and to <br /> develop a capital improvement plan so that interested agencies would be in a position to <br /> fully understand short and long term system maintenance and improvement needs. The <br /> County agreed with this approach, secured the required services and anticipates the final <br /> report being available in the next 4 to 6 months. <br /> Notwithstanding the above study, the current water and sewer maintenance agreement <br /> for Castlewood is expiring this June and the County has approached the City to see if <br /> there is interest in Pleasanton providing maintenance services on an interim basis, <br /> commencing July 1, for a period estimated to be one year. The one year period would <br /> allow the County to complete the consultant study and circulate a Request for Bids to <br /> select an agency or contractor to provide maintenance services on a longer term basis. <br /> Staff has reviewed this situation and has determined that there are some advantages in <br /> providing the services. First, and foremost, is assures that the system would be properly <br /> maintained to alleviate potential problems that could develop in the collections system <br /> that would then cause problems at the city maintained pump station Next, it allows our <br /> staff to fully evaluate the system so that we can provide input on planned upgrades and it <br /> places us in a better position relative to deciding whether or not to participate in the <br /> longer term maintenance process. Finally, it assures that the City would have input into <br /> service related decisions pertaining to this particular County service area. The City <br /> already operates the Castlewood sewer pump station for the service area, in conjunction <br /> with the County, on a contract basis. This new agreement would give us better control <br /> over the entire system and reduce the potential for problems from the Castlewood system <br /> that would then cause problems at our pumping facility. <br /> Disadvantages include additional staff workload, particularly in the event of a major <br /> system issue and, staff anticipates that it would need to hire a part-time, temporary, <br /> limited term maintenance worker in order to offset anticipated service impacts to the <br /> Pleasanton system if the City takes on this responsibility for the Castlewood County <br /> Service Area for a one year period. If the City decided to move forward with a more <br /> permanent agreement following the one year contract, we would structure the bid and <br /> agreement in such a way that it protects the Pleasanton rate payers from exposure in the <br /> future to financial liability arising from serving the Castlewood Country Club service area. <br /> Based on the above, staff is recommending that the Council authorize us to meet with the <br /> County in an attempt to draft an agreement detailing City provided services. Once these <br /> details are developed, staff can better assess financial impacts and service/staffing <br /> needs, if any for providing service to the Castlewood service area. Staff will report back <br /> Page 2 of 3 <br />