Title
Adopt a Resolution to Approve and Authorize the City Manager to Establish a Capital Reserve of $126,923 for the Exclusive Use of the East Bay Dischargers Authority for Emergency Repairs
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Fiscal Sustainability and Transparency
SUMMARY
The East Bay Dischargers Authority (EBDA) is responsible for the safe discharge of effluent from member wastewater treatment plants to the San Francisco Bay. The City of San Leandro is a member of the EBDA Joint Powers Authority. As part of the agreement with member agencies, EBDA requires funds to be available for unforeseen emergency repairs within 30 days of request.
EBDA’s Emergency Reserves 1.8 policy, requires each member agency “to clearly identify within their agency’s capital reserves a line item for EBDA that is equal to the agency’s allocation.” The City of San Leandro’s (The City) allocation is set at $126,923 for EBDA’s emergency reserve.
RECOMMENDATIONS
The City Council adopt a Resolution to create an emergency reserve fund for EBDA emergencies and allocate $126,923 for the exclusive use of funding emergency repairs required by EBDA.
BACKGROUND
EBDA was created in 1974 for the purpose of discharging treated wastewater to the San Francisco Bay. It collects the discharges from four wastewater treatment plants in the East Bay: Union Sanitary District, City of Hayward, Oro Loma Sanitary District and the City of San Leandro as well as discharge from the Livermore-Amador Valley Water Management Agency (LAVWMA). It dechlorinates these discharges and pumps the water about seven miles into the San Francisco Bay. These four entities, plus Castro Valley Sanitary District, are the five member agencies of EBDA.
The City owns and maintains the pump station at the Water Pollution Control Plant as well as the pipeline to the Marina Dechlorination Facility. EBDA owns and is responsible for the pump stations at the other Member Agencies, the pipeline from the other agencies, Marina Dechlorination Facility, and the outfall pipeline. EBDA’s budget is a little over $5 million per year, which is funded by the member agencies, pro-rated by the quantity of water each member discharges. The City’s portion of the reserve fund would only be used for repair to facilities for which the City maintains an ownership stake.
On November 18, 2019, the City Council passed Resolution No. 2019-191, which accepted the amended and restated Joint Exercise of Powers Agreement with EBDA until June 30, 2040.
Analysis
On November 18, 2021, the EBDA Commission, including the City’s representative, adopted a Finance Reserves Policy 1.8. This requires each member agency “to clearly identify within their agency’s capital reserves, a line item for EBDA that is equal to the agency’s allocation.” The total required emergency reserve from all agencies is $1,250,000, of which the City’s allocation is 13.74% or $126,923.
Financial Impacts
There is no financial impact on the General Fund (Fund 010). The WPCP Enterprise Fund (Fund 593) will be impacted if funds are requested by EBDA for emergency repairs.
ATTACHMENTS
Attachment A: Resolution to Set Aside a Capital Reserve For Use by East Bay Dischargers Authority
Attachment B: Amendment Five to the East Bay Dischargers Authority Joint Exercise of Powers Agreement
Attachment C: EBDA Finance-Emergency Reserves Policy
PREPARED BY:
Ramya Sankar, Management Analyst II, Water Pollution Control Plant
Hayes Morehouse, Water Pollution Control Manager