RES 85590 - Laserfiche WebLink

4. Procedures for Sale - a) Accept applications for specified period (30 days). b) :If applications total 300,000 GPD or less, sell capacity to all qualified applicants. c) If applications exceed 300,000 GPD, sell each qualified applicant a prorated share of the 300,000 GPD, based on percentage of total qualified applications. Individual Application/No. of GPD = % of GPD Total GPD Applied For 5. Buying Back of Capacity - a) City will buy back the capacity at the price paid, two years after the two expansion projects are complete, provided funds are available in the expansion fund. b) City may buy back the capacity, if offered by the purchaser, at any time if it would be advantageous to the City to do so. 6. Eligible to Purchase Other Capacity - Purchasers of the prosold capacity would be eligible to purchase sewer connections from other capacity available to the City, prior to using the capacity purchased in advance. Conclusion The expansion of the LAVWMA pipeline facility and the DSRSD treatment plant are to be paid for by the users of the additional capacity. To ensure cash flows are available to meet the construction schechale, it is estimated that the City will need to raise about $3.0 million from the users of the expanded capacity. One way to accomplish that is to prosell approximately 300,000 GPD of the new capacity. Any presale program should provide each property owners in the City an equal opportunity to buy the capacity in advance. Recommendation I recommend that the City Council authorize the staff to proceed with the advance sale of 300,000 GPD of sewage capacity under the procedures as outlined in this report. Respectfully submitted, J~ame~s R. Walker City Manager~ Page 4 SR85:439