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21 ATTACHMENT 3
City of Pleasanton
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072021
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21 ATTACHMENT 3
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7/15/2021 2:13:11 PM
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7/15/2021 1:02:08 PM
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
7/20/2021
DESTRUCT DATE
15Y
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21
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\CITY CLERK\AGENDA PACKETS\2021\072021
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<br />44 <br />Regional Agreement <br /> <br />DSRSD and Pleasanton are parties to an Agreement for Wastewater Disposal Services, <br />dated November 3, 1992, as supplemented (the “Regional Agreement”), which establishes the <br />following relationship between DSRSD and Pleasanton: <br /> <br /> Pleasanton will own and operate its own collection system. <br /> DSRSD will own and operate its own collection system. <br /> DSRSD will own and operate “Regional Sewerage Facilities,” including the DSRSD <br />Treatment Plant. <br /> The parties will charge a uniform regional connection fee for sewer service to be used <br />for the planning, design, acquisition and construction of improvements or expansions <br />to the Regional Sewerage Facilities or the facilities of LAVWMA. This fee has two <br />components: an expansion-related fee is referred to as the “Regional Capacity <br />Reserve Fee” in the Sewer Service Contract and a replacement-related fee is referred <br />to as the Regional Capacity Reserve Buy-In Fee” in the Sewer Service Contract. <br /> The parties will charge a uniform regional service charge. This charge is referred to as <br />the “Regional Service Charge” in the Sewer Service Contract. <br /> DSRSD and Pleasanton will each be responsible for levying charges on its customers <br />for its own collection system. <br /> The agreement has an indefinite term, but each party has the right to terminate the <br />Regional Agreement upon five years’ prior written notice. However, under the Sewer <br />Service Contract, DSRSD and Pleasanton surrender their right to terminate the <br />Regional Agreement until either (i) the 2021 Bonds have been paid or defeased or (ii) <br />the assumption by a new entity of the obligations of DSRSD and Pleasanton under the <br />Sewer Service Contract. DSRSD and Pleasanton have also agreed not to amend the <br />Regional Agreement in any way that would adversely impact the rights of the holders <br />of the 2021 Bonds. <br /> The parties have the following respective treatment and disposal capacity rights: <br /> <br />Capacity Right Pleasanton DSRSD <br />Treatment Capacity at DSRSD Treatment Plant 8.5 mgd ADWF 8.5 mgd ADWF <br />Disposal Capacity, in LAVWMA facilities 14.4 mgd PWWF 14.4 mgd PWWF <br /> <br />Rates and Charges <br /> <br />DSRSD has the power to establish wastewater rates and charges. Its wastewater charges <br />are established by its governing board and are not subject to review or approval by any other <br />agency. DSRSD principally relies on user charges and capacity reserve fees to generate <br />revenues to support its Sewer System. See “CONSTITUTIONAL LIMITATIONS ON <br />APPROPRIATIONS AND CHARGES - Articles XIIIC and XIIID of the California Constitution.” <br /> <br />Rate Setting Process. DSRSD periodically contracts with a consultant to perform a <br />comprehensive review and analysis of rates. The most recent study was completed in June 2017. <br />The consultant performs an extensive study of sewer rates and industrial waste service charges, <br />and assesses replacement reserves. The consultant prepares a report detailing historical data, <br />goals, and other information including recommendations. Staff reviews the consultant’s reports <br />and makes a recommendation to the Board of Directors to adjust the rates, as necessary. <br />
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