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3. Biosolids would process and treat all of the City's municipal sewage at no cost to the <br />City. Currently, the City dries municipal sewage on open-air drying beds at the facility <br />and contracts with companies to have it removed and treated. <br />4. Biosolids would pay the City $1.00 per ton for additional municipal sewage that is <br />treated at the Biosolids Facility. The Biosolids Facility has a capacity to accept 1,800 tons <br />per day, however it has been approved for processing less than that. <br />These terms have not been finalized and staff will continue to work out the details of a <br />lease agreement that may be reviewed as part of the City's TEFRA hearing. Staff will also <br />be requesting additional direction from the City Council on the lease terms in closed <br />session. <br />FINANCIAL IMPACT: <br />There will be positive financial impacts to the City. The City would save on having to <br />treat its own municipal sewage. In addition, the City would receive $1.00 per ton from <br />additional sewage treated at the Biosolids Facility. <br />ENVIRONMENTAL IMPACT: <br />The environmental impacts of the Biosolids Facility were previously analyzed as part of <br />the Planning Commission's approval of DAP 000-379. <br />CONFLICT OF INTEREST - Gift Disclosure Requirements <br />Biosoils of Southern California LLC <br />Cambrian Energy Management LLC <br />624 So. Grand Ave., Suite 2420 <br />Los Angeles, CA 90017-3325 <br />Facsimile No.: (213) 488-9890 <br />Attn: Jim Sullivan & Evan Williams <br />RECOMMENDATION: <br />City staff recommends that the City Council: <br />(1) Open the public hearing and continue the TEFRA hearing to the City Council <br />Meeting of February 6, 2007; and <br />