The deal will last until 2052, and about $800,000 will be given to the city to handle the wastewater. The city will also receive revenue from the sales of recycled water and SMWD will pay San Clemente $1.1m for access to the city’s water recycling system. Such agreements are usually signed on documents with official Letterheads.
The city council voted 3-2 in favor of the deal. The staff has been directed to find out what it will take to have SMWD annex the water district. Councilmember Kathy Ward and Mayor Chris Duncan were the two votes against, citing the need to discuss the issue further with San Clemente’s Long-Term Financial Plan in mind.
A report filed by the city stated:
“The Agreement is a unique opportunity for the City to utilize its stranded assets while cost sharing improvements with SMWD. It will create additional sources of revenue to offset future rate increases for the City’s customers and reduce the financial burden on the City.”
The SMWD pushed for this deal because treating the wastewater has proved to be a challenge. The district put in the formal request for the city to take over the treatment of water from Talega in 2017 and talks have been ongoing since.
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