AgdaPkt 2006-01-23 - Laserfiche WebLink

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7c!-Z/ FINANCING PLAN The Recycled Water Project The City is entirely reliant on one source of potable water - San Francisco's Hetch Hetchy regional water system - and has, over the last six years, purchased water from the Hetch Hetchy system in excess of the amount San Francisco is obligated to deliver to the City. See "THE ENTERPRISE - Water Supply and Demand." The City is undertaking the Recycled Water Project in order to eliminate its need to purchase more water than San Francisco is contractually obligated to sell to the City. The purpose of the Recycled Water Project is to provide tertiary treated non-potable, recycled waste water to appropriate customers of the Enterprise for landscape irrigation and industrial uses. Phase 1 of the Recycled Water Project consists of (i) improvements to the existing waste water treatment facilities owned and operated by the South Bayside System Authority ("SBSA"), a joint powers agency of which the City is a member, (ii) the construction of a disinfection facility (chlorine contact chamber) located at the site of the SBSA treatment facility, to be owned by the City and operated by SBSA, (iii) the construction of storage and pumping facilities located at the site of the SBSA treatment facility, to be owned and operated by the City, (iv) the acquisition and installation of new distribution pipelines throughout the water service areas of the City that are east of Highway 101, (v) customer site retrofits for each private or public site with a landscape irrigation meter and (vi) the installation of certain artificial surfaces for athletic fields in the City. Phase 2 of the Recycled Water Project consists of the acquisition and installation of new distribution pipelines throughout the water service areas of the City west of Highway 101, and the construction of related additional pumping facilities. The City and SBSA have entered into (i) an Agreement for Production and Delivery of Recycled Water dated August 1, 2004 (the "Production Agreement"), and (ii) a Lease Agreement (Recycled Water Treatment/Storage/Pumping Facility Site) dated August 1, 2004 (the "Lease"). Under the Production Agreement, SBSA will be responsible for the design and construction of Recycled Water Project facilities to be located on SBSA's property, including those owned by the City, and the City will be responsible for the design of Recycled Water Project facilities not located on SBSA's property. Upon completion of the Recycled Water Project, SBSA will be obligated to deliver recycled water to the City at the times and in the manner set forth in the Production Agreement. The City anticipates that SBSA will, as a result of the Phase 1 of the Recycled Water Project, be able to initially deliver approximately 1,690 to 2,000 acre feet of recycled water per annum to the City, although the City anticipates taking delivery of only 900 acre feet of recycled water per annum by Fiscal Year 2009-10. The Recycled Water Project will be designed and constructed so that SBSA and the City have the ability to modify the Recycled Water Project so that SBSA can increase its delivery of recycled water to the City to 3,238 acre feet of recycled water per annum, consistent with the certified CEQA Mitigated Negative Declaration for the Recycled Water Project. Under the Lease, which is scheduled to expire December 31, 2056, the City is leasing the real property from SBSA on which the disinfection facility and storage and pumping facilities described above of the Recycled Water Project will be constructed. The City expects that in addition to landscape irrigation users, some industrial users and commercial facilities will utilize the recycled water. In the Greater Bayfront area of the City these include concrete plants, materials recycling businesses and port-related activities, such as dust control. Additionally, the City Council anticipates that it will, in accordance with California law, be adopting a "dual plumbing" ordinance for certain new commercial construction, such as office buildings, for internal toilet-flushing and self-contained cooling systems. 3