21 ATTACHMENT 3 - Laserfiche WebLink

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