Council Member Moylan’s questions

·         Despite the benefits of using RW, is extending the service area cost prohibitive?  Director Rose – Cost of service study may prove recycled water a better value.

·          Noting that general rule is 100 yrs lifetime of buildings, is it likely that the City should consider requiring new construction to “dual plumb” homes and businesses in the event that recycled water service is extended?  City Manager Chan – Council should have the ability to deliver the recycled water before requiring developers to “dual plumb” homes and businesses. There will be an opportunity to look at recycled water use, study issue and make policy decisions.

Council Member Howe’s questions

• What ability do we have to deliver water during an event that requires emergency back-up power – is there any back-up power for the recycled water system?  Director Rose – Yes, there is a generator at the WPCP that will enable us to provide service during a power outage.
• In the Cost of Service Study, will there be a 20-year projection for recycled water costs in concert with the costs of SFPUC and SCVWD water?  City Manager Chan – Yes.
• Is the recycled water fund self-sufficient, or is it being subsidized by the potable water account?  Director Rose – We do not know at this time, the Cost of Service Study will determine this.

Council Member Chu’s questions

• Which costs are we talking about…O&M costs? Capital?  Director Rose – Incremental operational costs, the initial cost, and depreciation all will be considered in the Cost of Service Study.  For new customers in areas where we already have recycled water available, the incremental cost of producing recycled makes it attractive.  Any further extensions will involve significant capital expenses for mains, tanks and pumping stations. City Manager Chan – Any changes would be part of a budget proposal.  Cost must always be considered as a factor.
• The $115 from SCVWD, what is the basis for the reimbursement.  Director Rose – At the time recycled water was first introduced cost was very high to produce. SCVWD offered an incentive to offset costs.  The amount was to be based on some level of savings due to avoided costs that would result from having to purchase new, more expensive water if recycled water was not available.
• Why is recycled water charged at 90% of potable water? Director Rose – The 90% cost was set to provide an incentive to potential customers to shift to recycled water.