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Ms. Ayala again asked for reassurance that there is nothing in the agreement that would cause rates to go up for Pleasanton. Ms. McKeehan said rates may go up for other reasons, but not directly related to the agreement. Ms. Ayala asked if the rates would go up because of the RO process installation. Mr. Cusenza said no. The microfiltration or RO filters that are part of the Clean Water Revival will be paid for if they are used through the DERWA project. Ms. Ayala pointed out that Pleasanton has the largest number of ratepayers in DSRSD yet it still has no representation on the Board of Directors. That has always bothered her. Mayor Pico qualified that while Pleasanton does not have direct representation on the Board, it does have contractual relations with DSRSD which does provide a voice in a number of operating decisions for that facility as well as capital improvements. That ultimately brought us to this point for signing the Supplemental Agreement and getting a voice in the decision on direct injection of RO. Ms. Michelotti remembered that years ago the question was whether Pleasanton would use the recycled water in the future. She was happy to see the current agreement. Ms. McKeehan indicated this agreement recognizes there is a value to the wastewater. In the original 1992 agreement, Pleasanton identified that there would some day be a value in the wastewater. Pleasanton staff thought the language was clear, but as time went along, interpretations differed. This Supplemental Agreement will finally make the interpretation clear. Peggy Pumell, 2472 Via de los Milagros, said she served on the Zone 7 Groundwater Management Advisory Committee for eight years. That is when she learned about the plans for direction injection of RO treated water and the need for a grassroots organization to question the need and wisdom of the Clean Water Revival project. Two groups were formed to oppose the project. It looks like they have succeeded. She was happy this was taken off the Consent Calendar so the public can be informed of the action. She was also concerned about the lack of representation on the Board. She asked who paid for the new facility and if DERWA is using it, would there be compensation to Pleasanton? She also asked about the reference to injection of "tertiary" treated water on page 3 of the staffreport. Mr. Cusenza said the Clean Water Revival project was funded from new development eounection fees and not from water rates. Any other uses of the facilities will go back into the connection fee fund, so again it is not rate based nor does it impact the rote payers. The second statement regarding tertiary treated water was added by Pleasanton staff to broaden the ability to limit or control injection of RO treated or tertiary treated water. Mr. Purnell asked for an explanation of why there is not Pleasanton representation on the DSRSD Board. Pleasanton City Council 9 11 / 19/02 Minutes