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Ms. Acosta said the connection fees are used to make improvements to the system for existing customers. This fee is required for expansions. Zone changes have been made to increase water pressure from connection fees because it was required by new development. Mayor Tarver declared the public hearing open. Margaret Tracy, 1262 Madison Avenue, representing Valley Wide Safe Water Committee, asked what proportion of water would be used by Pleasanton and DSRSD? She said a hydraulic study was done in 1990's and asked what the results were. Why is it necessary for hydraulic studies to be done now and if so, shouldn't the hydraulic studies be done before an agreement is signed? She wanted the questions answered in the staff report: particularly l(f), (where will the water for East Dublin come from during periods of high demand and low system pressure); l(h), (can the so called "benefits to the City of Pleasanton" be clarified and quantified); 1(i), (why is the City of Pleasanton even considering principles of agreement at this time without an understanding of the hydraulic pitfalls and the liability for serving East Dublin)? The Committee is concerned about all the questions. Peggy Purnell, 2472 de los Milagros, asked staff to explain the addendum to the staff report. Mr. Lum said the purpose of the addendum was to respond in a narrative form to the questions. Time did not allow staff to respond in. detail to each question. Staff recapped the history of the siting of the reservoir and the need to serve the City's lower zone. The construction of the reservoir was to serve as a joint use situation. The reservoir was constructed at a higher elevation than the normal lower zone elevation which contributes to the hydraulic concerns. The report addresses the issues of joint use to the effect of how the water would be paid for, the financial benefits, and the reason for moving forward at this time. Ms. Purnell said she has been watching Zone 7 and DSRSD very closely for two years. She had a concern with the staff report and had a lot of questions. DSRSD is a special district that unlike Pleasanton is only concerned with serving water and providing sewer services. DSRSD is not concerned with traffic, overcrowding schools, and other things that cries are concerned with. Thirty years ago, the City of Pleasanton gave the sewer services to DSRSD. Residents cannot vote for the DSRSD Board . This left the residents with no say in what DSRSD does with the sewer services. She does not want the same thing to happen to the water service. She felt DSRSD's most ardent concern was growth and the City of Pleasanton would do better to keep its reservoir and water system to itself. Tom Ford, 7262 Tina Place, Dublin, was concerned about the overall situation. He commended Mayor Tarver's and Councilmember Pico's comments. He followed the Zone 7 efforts to get a contract with DSRSD for over three years. It wasn't a contract he endorsed. He said the City of Pleasanton is doing a valuable service for DSRSD if this agreement is signed. He liked the agreement in the fact it would subsidize his water rates at some time in Pleasanton City Council 21 6/2/98 Minutes