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BACKGROUND <br /> The Dublin San Ramon Services District (District) and the City of Pleasanton (City) <br /> entered into the Agreement for Wastewater Disposal Services (Basic Agreement) on <br /> November 3, 1992. The Basic Agreement provides for the contractual relationship <br /> between the District and the City as it pertains to sewer services provided by the District <br /> to the City's sewer customers. Between 1997 and 2015, six supplemental agreements <br /> have been entered into, pursuant to the terms of the Basic Agreement. These <br /> supplements are mostly related to the integration of supply, operations, and facilities of <br /> each agency's recycled water programs and the Clean Water Revival Project. The <br /> proposed Seventh Supplemental Agreement addresses the City's current and future <br /> use of the District's West Dublin Trunk Sewer Line for wastewater discharge. On June <br /> 21, 2022, the District's Board of Directors approved the Seventh Supplemental <br /> Agreement. <br /> DISCUSSION <br /> The District's West Dublin Trunk Sewer Line is shown in the Agreement on Exhibit A. in <br /> the sewer line begins in south San Ramon, passes through Dublin in alignment with <br /> Village Parkway, crosses Highway 680 and Alamo Creek into Pleasanton, and is joined <br /> by the Camp Parks sewer within the District's biosolids disposal site. From there, it <br /> continues into the Regional Wastewater Treatment Facility. The West Dublin Trunk <br /> Sewer Line was constructed in 1961 with sections rehabilitated in 1991 and 2007, and <br /> the remainder rehabilitated in 2017. The West Dublin Trunk Sewer Line provides sewer <br /> collection system capacity for the District's Local sewer customers and is funded by the <br /> District's Local services charges and capacity fees. <br /> Wastewater from the properties along the western and northern section of Johnson <br /> Drive and in the Commerce Circle area, all located in the city of Pleasanton, discharges <br /> into the City's wastewater collection system (owned and maintained by the City), which <br /> then discharges into the West Dublin Trunk Sewer Line (owned and maintained by the <br /> District). At this time, neither the City of Pleasanton nor its customers pay the District's <br /> local service charges despite benefitting from the use of the District's trunk sewer. The <br /> portion of the sewer line owned exclusively by the District as part of the District's Local <br /> Wastewater program that is presently being used by the City is approximately 5,400 feet <br /> of 42- to 48-inch diameter pipe. <br /> This issue was first discussed between the City and the District in 2014, but there was <br /> not agreement on how to move forward. . In early 2022, staff from each agency jointly <br /> developed a proposed Seventh Supplemental Agreement which reclassifies the portion <br /> of the West Dublin Sewer Trunk Line in question from a Local asset to a Regional asset <br /> to address the fact that the West Dublin Trunk Sewer Line effectively provides capacity <br /> for the mutual benefit of the City of Pleasanton and the District. <br /> This transfer would be effectuated by having the District's Regional Wastewater <br /> Replacement Fund (Fund 310) that serves both Pleasanton and the District purchase <br /> the asset from the Local Wastewater Replacement Fund (Fund 210) that is associated <br /> only with the District's wastewater customers. <br /> Page 2 of 3 <br />