East Palo Alto City Council
September 20, 2022

East Palo Alto Sanitary District
Sewer Infrastructure Financing
options for Development Project
September 2022
Table of Content
• Existing Infrastructure
• New Developments
• Financing options
• Conclusion
• Way Forward
Existing Infrastructures
• Consists of 15 drainage basins
• Approximately 70% of the pipes are six inches
• The trunk line running to the plant is 24-inches
• Serves most of East Palo Alto and Menlo Park
• Consists of a siphon below the Creek
New Developments
• New developments will require a system capacity of 4 MGD • Upgrade will cost about $40 million
• Approximately 42,000 ft of pipe upgrade required
• Projects cannot be phased
• Trunk line only has 100,000 GPD left in capacity
• Existing siphon has adequate capacity
Financing Options
• Municipal Bond- will require a rate increase from the $600 to $1100 per year
• Grants- A grant consultant has been retained for this purpose • Mello Roos Tax- Work in progress
• Combination of municipal bond and grant
• Low interest loan
• Pay as you go
Conclusion
• Rate Study completed
• Capacity study completed- with this option, all developers can get will serve letters
• Mello Roos Tax work in progress
• Master Plan completed
• CCTV Project in progress
• Light Tree Project Awarded
• Grant consultant hired
• Coordination with Rate Committee ongoing
Way Forward
• Schedule a meeting between developers and Consultants • Look for Grants
• Complete Mello Roos Tax study plan
• Adopt the option with the most mutual benefit
• Give will serve letters to all developers