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the agreement, they have outlined how the infrastructure would be shared in a way that accounts for Pleasanton's previous contribution. The agreement with DERWA, which is a Joint Powers Authority comprised of DSRSD and EBMUD, establishes the rate and terms under which DERWA provides tertiary treatment of the secondary effluent and delivers the final product to the city for distribution. Councilmember Brown asked and Mr. Smith confirmed that recycled water use at CLC is for irrigation, not drinking water. She referred an earlier comment he made that it would require 67,000 years worth of play on a lawn irrigated with recycled water for a child to absorb or ingest the equivalent of one dose of Advil. She asked then whether minute quantities of drugs or other dissolved materials make their way through the treatment process and into irrigation. Mr. Smith explained that recycled water used for irrigation is subjected to a tertiary treatment process, which does not remove all chemicals from the water and does provide for minute exposures over exceptionally long periods of time. Reverse osmosis is the method used to remove the majority of chemicals for consumption purposes. Mr. Smith continued his presentation. He showed several slides of existing infrastructure and demonstrated the proposed implementation of the recycled water program. Phase 1 includes the current agreement with the City of Livermore to temporarily service certain portions along the east side. Phase 1A forms the backbone of the distribution system from the west end of Pleasanton, connecting the DSRSD/DERWA tertiary treatment facility to major sections of Hacienda Business Park as the pipeline makes it way to the existing 8 million gallon Tassajara Reservoir for storage capability. Phase 1B looks at extending the service to additional portions of Hacienda and the east side, potentially at the expense of future developers. In terms of capacity, Phase 1A provides approximately 3 million gallons of recycled water per day and Phase 1B nearly 4 million gallons. The expansion of water treatment capacities beyond the 2 million gallons currently available through DSRSD and DERWA is estimated to cost $1.4 million. Distribution costs for Phase 1A is nearly $11.5 million and Phase 1B almost half that. The current sale price for potable water is $1,074 per acre foot and is projected to reach nearly $1,400 per by 2020. Because it is illegal in California to sell recycled water for more than potable water, staff is recommending an interim charge of 90% of the potable water price. Using 2020 estimates, recycled water would cost consumers $268 per acre foot less than potable water. In looking at the cost versus benefits, the study determined that even with financing the city can expect to pay about $900 per acre foot and resell the same acre foot for about $1,125. Staff is requesting the following action by the Council: approve the Recycled Water Feasibility Study and Water Supply Contracts with DSRSD and DERWA, authorize staff to start detailed environmental analysis, authorize staff to submit grant and loan applications, and authorize an expenditure of $40,000 from the Recycled Water Fund to purchase recycled water from the City of Livermore for the remainder of 2013. Mayor Thorne asked and Mr. Smith confirmed that recycled water supplies at Val Vista are for the park only and not the development. He also asked whether staff had any information on the status of the Delta fix water bond. Mr. Smith said the bond is still on for 2014, though polling indicates it will fail again. A new group of legislators have prepared a new $4 billion bond for the project, but there is some concern that the Governor will not move forward with it because of the upcoming reelection. The general expectation is that it may be 2016 before any type of water bond passes. Councilmember Pentin noted that the proposed program does not service Callippe Preserve Golf Course, which is the single largest source of water consumption by the city. City Council Minutes Page 4 of 13 November 5, 2013