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HomeMy WebLinkAbout7.1 Sewer Capacity Regency Vlg t9i � '8z CITY CLERK � � STAFF REPORT CITY COUNCIL File #1030-30 �`tIIFpRN� b 00-40 DATE: April 15, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, Acting City Manager SUBJECT: Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC - Prepared by Hazel L. Wetherford, Economic Development Analyst - EXECUTIVE SUMMARY: The City Council, by motion on June 5, 2012, authorized Staff to prepare an Agreement permitting Re-Allocation of Regional and Local Sewer Capacity Rights with Regency Centers, a real estate development company that purchased a 14-acre site at 5054 Hacienda Drive (APN 986-0033-007-00) from the Alameda County Surplus Property Authority for the development of a 152,500 square foot retail shopping center. Staff has prepared the Agreement for the City Council's consideration. FINANCIAL IMPACT: Costs associated with the development of the Agreement were borne by Regency Centers. RECOMMENDATION: Staff recommends that the City Council adopt the proposed Resolution approving an Agreement Permitting Re-Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC. Reviewed By Acting Assistant City Manager C Page 1 of 3 ITEM NO. 7.1 Ceti or 19 82 /ii � 111 DATE: TO: STAFF REPORT CITY COUNCIL April 15, 2014 Honorable Mayor and City Councilmembers CITY CLERK File #1030 -30 FROM: Christopher L. Foss, Acting City Manager �?14 " SUBJECT: Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC Prepared by Hazel L. Wetherford, Economic Development Analyst EXECUTIVE SUMMARY: The City Council, by motion on June 5, 2012, authorized Staff to prepare an Agreement permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Centers, a real estate development company that purchased a 14 -acre site at 5054 Hacienda Drive (APN 986- 0033 - 007 -00) from the Alameda County Surplus Property Authority for the development of a 152,500 square foot retail shopping center. Staff has prepared the Agreement for the City Council's consideration. FINANCIAL IMPACT: Costs associated with the development of the Agreement were borne by Regency Centers. RECOMMENDATION: Staff recommends that the City Council adopt the proposed Resolution approving an Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC. `Reviewed By Acting Assistant City Manager Page 1 of 3 ITEM NO. 7.1 DESCRIPTION: On May 4, 2010, the City Council adopted Resolution 53 -10 approving a Letter Agreement with the Dublin San Ramon Services District (DSRSD) for the Administration of Unused Sewer Capacity for the City of Dublin. Commonly referred to as the Sewer Capacity Assistance Program, the Program allows the City to market its excess sewer capacity as an economic development incentive program to help stimulate economic growth in the community. The Program is designed to support large and small businesses and encourage the recruitment, renovation or re -use of properties in Dublin. The Program allows the City to provide a credit of up to twenty -five percent (25 %) of the DSRSD connection fees that would otherwise be paid by the applicant. On June 5, 2012, the City Council authorized Staff to reserve an allocation from the Sewer Capacity Assistance Program in anticipation of project by Regency Centers, a real estate development company that purchased a 14 -acre site at 5054 Hacienda Drive (APN 986 -0033- 007-00) from the Alameda County Surplus Property Authority for the development of a 152,500 square foot retail shopping center. Since that authorization, Regency Centers has created a limited liability corporation, Regency Village at Dublin, LLC, related to the development of the project, Persimmon Place. This Agreement is between the City, DSRSD, and Regency Village at Dublin, LLC. Through the Program, the City will be able to assist Regency with the allocation of 15.02 Dwelling Unit Equivalents (DUEs) (value: approximately $242,258 in DSRSD fees) of the 43.9 DUEs of excess sewer capacity that the City holds. The 15.02 DUEs are 25% of the 60.08 DUEs estimated by DSRSD and will be distributed as follows: Tenant Sq. Ft. DSRSD DUE Estimate Sewer Capacity Assistance Location Whole Foods 40,000 34.55 8.64 Parcel 2 Nordstrom Rack 35,000 7.95 1.99 Parcel 1 HomeGoods 22,000 5.00 1.25 Parcel 1 Restaurant A* 3,800 0.86 0.22 Parcel 4 Restaurant B* 2,200 0.50 0.12 Parcel 1 Restaurant C* 2,000 0.45 0.11 Parcel 1 Restaurant D* 5,500 1.25 0.31 Parcel 1 Retail A* 5,800 1.31 0.33 Parcel 3 Remaining Retail 30,200 6.85 1.71 Parcels 1, 3, 4 & 5 Remaining Restaurant 6,000 1.36 0.34 Parcels 1 & 3 Total 152,500 60.08 15.02 *At the time of this contract, the lease was in negotiation so the name of the business could not be shared. Staff believes that the investment of sewer capacity at this location will further assist in the City's economic development efforts to bring high quality retail and restaurants to the Dublin community that will likely result in higher sales tax revenues to the City. In addition to the tax revenue benefits to the City and its residents, this Agreement will also result in development that enhances the appearance and character of the Hacienda and Dublin Blvd. area, to the benefit of City residents. Page 2 of 3 Finally, the Regency Center project will generate several hundred permanent jobs in the City, along with the construction jobs resulting from its development. Both temporary and permanent employees are likely to spend money at other business establishments in the City, thus generating additional sales tax revenue for the City. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. City Council Staff Report dated June 5, 2012 2. Resolution Approving the Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC 3. Exhibit A to Attachment 2 - Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Village at Dublin, LLC Page 3 of 3 or 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL June 5, 2012 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #470 -50 SUBJECT: Request for Sewer Capacity Assistance Prepared by Linda Smith, Economic Development Director /Public Information Officer EXECUTIVE SUMMARY: The City received a request from Regency Centers to participate in the City's Sewer Capacity Assistance Program. Regency Centers is in contract to purchase Site 16A (a 14 -acre site at the southwest corner of Hacienda Drive and Dublin Blvd.), and would propose to use the assistance to offset the costs for the construction of a retail center. FINANCIAL IMPACT: If the City Council provides direction to Staff to proceed, there could be legal fees associated with the review of the agreement for sewer capacity. RECOMMENDATION: Staff recommends that the City Council provide direction regarding the request for participation in the Program. f' l ✓l jt� ,y' , �. Submitted By Economic Development Director DESCRIPTION: Reviewed By Assistant City Manager On May 4, 2010, the City Council adopted Resolution 53 -10 approving a Letter Agreement with the Dublin San Ramon Services District ( DSRSD) for the Administration of Unused Sewer Capacity for the City of Dublin. Commonly referred to as the Sewer Capacity Assistance Program, the Program allows the City to market its excess sewer capacity as an economic development incentive program to help stimulate economic growth in the community. The Program is designed to support large and small businesses and encourage the recruitment, renovation or re -use of properties in Dublin. The Program allows the City to provide a credit of up to twenty -five percent (25 %) of the DSRSD Page 1 of 2 ITEM NO. 8.2 connection fees that would otherwise be paid by the applicant. The Program currently has 60 Dwelling Unit Equivalents (DUE) available. The City received a request to participate in the program from Regency Centers (Attachment 1), who is in contract to purchase Site 16A (a 14 -acre site at the southwest corner of Hacienda Drive and Dublin Blvd.) from the Alameda County Surplus Property Authority (ACSPA). The City Council is being asked to consider this request seeking sewer capacity assistance for the construction of a retail center project (Attachment 2). Through the Program, the City would be able to assist Regency with the allocation of approximately 14 DUEs (value: approximately $225,718 in DSRSD fees) of the 60 DUEs of excess sewer capacity that the City holds. Staff believes that the investment of sewer capacity at this location will further assist in the City's economic development efforts to bring high quality retail and restaurants to the Dublin community that will likely result in higher sales tax revenues to the City. Staff is seeking City Council direction at this time before investing a significant amount of Staff time and associated legal fees in drafting the necessary agreements. If the City Council desires, Staff will work with the property owner /applicant and DSRSD to draft the necessary agreements, and will bring back the agreements for City Council action at a future date. NOTICING REQUIREMENTS /PUBLIC OUTREACH: 1101 ATTACHMENTS: 1. Request letter from Regency Centers 2. Resolution Approving a Letter of Agreement with the Dublin San Ramon Services District for Administration of Unused City of Dublin Sewer Capacity Page 2 of 2 2999 Oak Road .. 279 1800 Suite 1000 F 925 935 5902 Walnut Creek, CA 94597 RegencyCenters.com A 4111111110 Hh, R W-TAK011111IMI Linda it Economic Development Director City of Dublin 100 Civic Plaza Dublin, CA 94568 Regency Centers wishes to construct a retail center at this location, which is comistent with the request that was made to the City Council to study a General Plan/Specific Plan amendment for this location. During our negotiations with the County, we were advised by City staff of the Sewer .lipcity Assistance Program. Our understanding is that this program could potentially offset up to 25 percent of the regional connection fee by utilizing some of the City of Dublin's excess capacity ffia) has been set aside for economic development purposes. We would like to formally request participation in this program for our prospective project. Pleaszw advise us on next steps to garner support for this request. Sin ete Knoedler Regency Centers RESOLUTION NO. 53 -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ** APPROVING A LETTER OF AGREEMENT WITH THE DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) FOR THE ADMINISTRATION OF UNUSED CITY OF DUBLIN SEWER CAPACITY WHEREAS, the City Council of the City of Dublin (the "City ") is desirous of improving the economic viability of the community through the establishment of certain economic incentive programs; and WHEREAS, in an attempt to attract new businesses or retain and /or expand existing businesses that will provide additional jobs and generate additional tax revenues for the City, as well as for certain residential projects that will likely result in greater economic activity in Dublin, Staff is requesting City Council consideration of an agreement with the Dublin San Ramon Services District (DSRSD) that will allow the City to provide unused City sewer capacity rights to new and /or existing businesses and /or projects; and WHEREAS, the proposed program would require the City, DSRSD, property owner and applicant to enter into a agreement permitting the re- allocation of regional and local sewer capacity rights, and the agreement will be recorded with the Alameda County Recorder's Office, and WHEREAS, the City Council finds it is in the public interest to enter into this agreement because the City and its residents will benefit from increased revenues received from both sales tax revenue that it may not otherwise receive, and from the increase in the property taxes as a result of improvements to the property; and WHEREAS, the City Council further finds that the City and its residents may also benefit from the creation of new jobs in the City that will occur when a new business is established or an existing business is expanded; and WHEREAS, the City Council further finds that the City and its residents may also benefit from the creation of construction jobs created from residential projects that are developed. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Letter of Agreement with the Dublin San Ramon Services District (DSRSD) for the Administration of Unused City of Dublin Sewer Capacity (attached as Exhibit A). BE IT FURTHER RESOLVED that the City Manager is authorized to execute the agreement substantially in the form attached hereto and to undertake such action as may be necessary and desirable to carry out the intent of this resolution. Page 1 of 2 PASSED, APPROVED AND ADOPTED this 4th day of May, 2010, by the following vote: AYES: Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti NOES: None ABSENT: Councilmember Hildenbrand ABSTAIN: None ATTES City Clerk Reso No. 53 -10, Adopted 5 -4 -10, Item 8.1 Page 2 of 2 Mayor DUBLIN SAN RAMON SERVICES DISTRICT Ms. Joni Pattillo City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 April 21, 2010 Subject: Letter of Agreement for the Administration of Unused City of Dublin Sewer Capacity Dear Joni: 3aG �2l 7051 Dublin Boulevard Dublin, California 94568 Phone: 925 828 0515 FAX: 925 829 1180 www.dsrsd.com As you are aware, at the request of the City of Dublin (City), on March 2, 2010, the Board of Directors of Dublin San Ramon Services District (District) adopted Resolution No. 9 -10 (Attachment A) authorizing the City to transfer unused sewer capacity allocated to City properties to commercial properties where the City would like to stimulate economic growth. The resolution requires a Letter of Agreement between the City and District to define the administrative procedures for the administration of the program. 'In addition, on April 20, 2010, the District Board of Directors adopted Resolution No. 14 -10 (Attachment B) authorizing the City to also transfer unused sewer capacity to residential development. Upon the City's approval and acceptance, evidenced by your signature below, this letter will serve as the required Letter of Agreement. The procedures for administering the unused capacity transfer program shall be as follows: • City shall provide to District Engineer, David A. Requa, a letter providing the name of (and contact information for) the applicant for the new, expanding, or relocating business (hereinafter, "commercial project ") or residential development project (hereinafter, "residential project" or collectively "project ") the City is supporting, the name of (and contact information for) the owner(s) of the property on which the project is located (if different than the applicant for the project) and the number of dwelling unit equivalents ( "DUEs ") the City desires to allocate to the project. • The District Engineer shall have the discretion to determine whether the number of DUEs the City desires to allocate to the project are consistent with the wastewater flow characteristics, including volume and strength in terms of BOD and SS, for the proposed use. Such determination will be based, in the sole discretion of the District Engineer, on Dublin San Ramon Sendces Distnct is a Public Entity EXHIBIT A Ms. Joni Patillo Page 2 April 21, 2010 yy 4 • information concerning the wastewater flow characteristics provided by the Applicant, and/or on a schedule of wastewater flow characteristics for the category or categories of use classifications determined by the District Engineer to be most applicable to the proposed use. • The Applicant shall be responsible for complying with the District Code' with respect to commencing wastewater service, including the acquisition of all additional DUES determined to be necessary, the application for a Sewer Permit and compliance with all conditions thereto, and for paying all fees and charges attributable to the project. • Prior to and as a condition of District issuance of a Sewer Permit authorizing a commercial project to proceed, City shall sign an agreement with the District, the applicant, and the landowner (if a person different from the applicant) regarding management of the DUEs allocated for the project, which agreement shall be in the form attached hereto as Attachment C, which form of agreement shall be revised to conform to changes made from time to time to pertinent portions of the District Code. • City shall provide District written notification should the applicant's commercial project fail and the City desires to transfer the allocated DUES back to the City from the owner of the property. • The aggregate total of DUEs allocated under this program shall not exceed sixty -six and two- thirds (66 2/3) DUEs at any time. No letter request dated after December 31, 2011 by the City to allocate DUES will be honored by District unless approved by the District Board of Directors. If this Letter of Agreement is satisfactory to the City, please sign and return one copy to the District. The District is pleased to have this opportunity to assist the City in these challenging economic times. ACCEPTED for CITY OF DUBLIN JONI PATTILLO City Manager Sincerely, /l A BERT L. MICHALCZYK General Manager Date 1. This is the District Code of the Dublin San Ramon Services District, which contains the pertinent rules and regulations as adopted by the District's Board of Directors from time to time. Ms. Joni Patillo Page 3 April 21, 2010 Attachments: (A) DSRSD Board Resolution No. 9 -10 (B) DSRSD Board Resolution No. 14 -10 (C) Dublin Sewer Capacity Transfer Agreement cc: D. Requa H' \FNGDF.Pllnent Item c\FNC'M -M 17I TRT rN\nl M All —t;—V .n , of A o.ne.. , _ n_kj; , r;.,.,t .t.,w a .. S� a i RESOLUTION NO. -13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE AGREEMENT PERMITTING RE- ALLOCATION OF REGIONAL AND LOCAL SEWER CAPACITY RIGHTS WITH REGENCY VILLAGE AT DUBLIN, LLC WHEREAS, on May 4, 2010, the City Council of the City of Dublin adopted Resolution No. 53 -10 approving a Letter of Agreement with the Dublin San Ramon Services District ( DSRSD) for the administration of unused City of Dublin sewer capacity and the creation of a city -wide Sewer Capacity Assistance Program; and WHEREAS, the District's Board of Directors adopted Resolution No. 9 -10 approving the refunding of unused sewer capacity to the City in accordance with DSRSD Code Section 7.2.12.B, and Resolution No. 14 -10 approving and expanding the administrative procedure to reallocate unused sewer capacity to the City as authorized by Resolution No. 9 -10 to include residential units in accordance with DSRSD Code Section 7.2.12.B; and WHEREAS, on May 21, 2013, the City Council of the City of Dublin adopted Resolution No. 67 -13 amending the City's Sewer Capacity Assistance Program and Establishing Criteria for Program Implementation; and WHEREAS, on March 18, 2014, the City Council of the City of Dublin adopted Resolution No. 33 -14 amending the City's Sewer Capacity Assistance Program and Establishing Criteria for Program Implementation; and WHEREAS, the Program authorizes the City of Dublin to enter into agreements with property owners and /or tenants, wherein the City agrees to re- allocate unused City sewer capacity to the property owner and /or tenant; and WHEREAS, at the June 5, 2012 City Council meeting, the City Council directed Staff to prepare an Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity Rights with Regency Centers, a real estate development company that purchased a 14 -acre site from the Alameda County Surplus Property Authority at 5054 Hacienda Drive (APN 986- 0033 -007- 00) for the development of a 152,500 square foot retail shopping center ( "Agreement "); and WHEREAS, through the Program, the City will be able to assist Regency Village at Dublin, LLC with the allocation of 15.02 Dwelling Unit Equivalents (DUEs) (value: approximately $242,258 in DSRSD fees) of the 43.9 DUEs of excess sewer capacity that the City holds. The 15.02 DUEs is 25% of the 60.08 DUEs estimated by DSRSD and will be distributed as follows: Tenant Sq. Ft. DSRSD DUE Estimate Sewer Capacity Allocation Location Whole Foods 40,000 34.55 8.64 Parcel 2 Nordstrom Rack 35,000 7.95 1.99 Parcel 1 HomeGoods 22,000 5.00 1.25 Parcel 1 Restaurant A* 3,800 0.86 0.22 Parcel 4 Restaurant B* 2,200 0.50 0.12 Parcel 1 Restaurant C* 2,000 0.45 0.11 Parcel 1 Restaurant D* 5,500 1.25 0.31 Parcel 1 Retail A* 5,800 1.31 0.33 Parcel 3 Remaining Retail 30,200 6.85 1.71 Parcels 1, 3, 4 & 5 Remaining Restaurant 6,000 1.36 0.34 Parcels 1 & 3 Total 1 152,500 1 60.08 1 15.02 At the time or this contract, the lease was In negotiation so the name or the business could not be shared. WHEREAS, but for the existence of this Agreement, Regency would not be able to develop the retail center; and WHEREAS, the City Council finds that it is in the public interest to enter into this Agreement because the City and its residents will benefit from increased revenue received from both sales tax revenue that it may not otherwise receive, and from the increase in property taxes resulting from an increase in the value of the property attributable to the development of the retail center; and WHEREAS, the City Council finds that it is in the public interest to enter into this Agreement because the City and its residents will benefit from the aesthetic improvements of the Hacienda Dr. and Dublin Blvd. area; and WHEREAS, the City Council further finds that it is in the public interest to enter into this Agreement because the City and its residents will also benefit from the creation of new jobs in the City resulting from the development of this retail shopping center. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Dublin approves the Sewer Capacity Agreement, attached hereto as Exhibit A, and titled "Agreement Permitting Re- Allocation of Regional and Local Sewer Capacity between the City of Dublin, Dublin San Ramon Services District and Regency Village at Dublin, LLC." BE IT FURTHER RESOLVED that the City Manager is authorized to execute the Agreement substantially in the form attached hereto and to undertake such further action as may be necessary and desirable to carry out the intent of this Resolution. [signature page immediately follows] PASSED, APPROVED AND ADOPTED this 15th day of April, 2014 by the following vote- AYES- NOES- ABSENT- ABSTAIN- ATTEST- City Clerk 2261574.1 Mayor RECORDING REQUESTED BY: City of Dublin When Recorded Mail To: City Cleric City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space above this line for Recorder's Use AGREEMENT PERMITTING RE- ALLOCATION OF REGIONAL AND LOCAL SEWER CAPACITY Agreement with Regency Village at Dublin, LLC AGREEMENT PERMITTING RE- ALLOCATION OF REGIONAL AND LOCAL SEWER CAPACITY RIGHTS This Agreement, made and entered into this day of April, 2014, by and between the DUBLIN SAN RAMON SERVICES DISTRICT, a public agency in the Counties of Alameda and Contra Costa, California ( "District "), CITY OF DUBLIN, a general law city in the County of Alameda ( "City "), and REGENCY VILLAGE AT DUBLIN, LLC, a Delaware Limited Liability Company as both the Project Owner ( "Owner ") and the Project Applicant ( "Applicant "). WITNESSETH: WHEREAS, on May 4, 2010, the City Council of the City of Dublin adopted Resolution No. 53 -10 approving a Letter of Agreement with the District for the administration of unused City of Dublin sewer capacity and the creation of a city -wide Sewer Capacity Assistance Program; and WHEREAS, the District's Board of Directors adopted Resolution No. 9 -10 approving refunding unused sewer capacity to the City in accordance with District Code Section 7.2.12.13, and Resolution No. 14 -10 approving and expanding the administrative procedure to reallocate unused sewer capacity to the City as authorized by Resolution No. 9 -10 to include residential units in accordance with District Code Section 7.2.12.13; and WHEREAS, on May 21, 2013, the City Council of the City of Dublin adopted Resolution No. 67 -13 amending the City's Sewer Capacity Assistance Program and Establishing Criteria for Program Implementation; and WHEREAS, on March 18, 2014, the City Council of the City of Dublin adopted Resolution No. 33 -14 amending the City's Sewer Capacity Assistance Program and Establishing Criteria for Program Implementation; and WHEREAS, Applicant has requested and applied for a Certificate of Capacity Rights from the District to receive service from the District's wastewater facilities; and WHEREAS, City has agreed to allocate City wastewater capacity rights for Applicant's new, expanding, or relocating business (hereinafter, "project" or "Applicant's Project "); and WHEREAS, Owner acknowledges the benefits of using such an allocation to support Applicant's Project, and believes that those benefits outweigh the risk that such an allocation could subsequently be removed from the Owner's Property if Applicant's Project is unsuccessful; and WHEREAS, Owner is therefore willing to agree that if Applicant's Project fails, City may recover the full amount of City's wastewater capacity rights that City has allocated to Applicant's project; and Agreement with Regency Village at Dublin, LLC WHEREAS, under the circumstances specified in, and pursuant to the provisions of, Resolution No. 09 -10, a portion of City's wastewater capacity rights may be allocated to Applicant's Project pursuant to written agreement in a form approved by the District's Board of Directors; and WHEREAS, City, Owner and Applicant desire to enter into such agreement in the form hereof as heretofore approved by the District's Board of Directors; NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS: 1. Definitions. The following words and terms as used herein shall have the meanings respectively ascribed thereto except to the extent that any one or more of said definition(s) may from time to time be amended or revised by the District's Board of Directors through amendment of the District Code affecting (and /or renumbering) the provisions referenced below: A. Applicant — hereinabove described. B. Applicant's Project — Retail Shopping Center located at 5054 Hacienda Drive (APN 986 - 0033 - 007 -00). C. BOD — defined in the District Code, Section 1.20.080, as follows: "BOD (biochemical oxygen demand)" means the quantity of dissolved oxygen utilized in the biochemical oxidation of organic matter measured using the standard laboratory method therefor, usually expressed in milligrams per liter (mg /L). D. Capacity Rights — defined in the District Code, Section 1.20.080, with respects to wastewater connection, as follows: "Capacity rights" means the flow, BOD and suspended solids (SS) capacity purchased by a user upon obtaining a certificate of capacity rights, or, if such data is not available, the average month loadings of a user during some prior calendar year when it can be shown to the satisfaction of the District Engineer that such prior year's average month loadings are more representative of a user's use of the wastewater system. E. Certificate of Capacity Rights — defined in the District Code, Section 1.20.080, as follows: "Certificate of capacity rights" (formerly known as "connection permit" or "sewer permit ") means a certificate granted by the District to an applicant reserving capacity sufficient to provide potable and /or recycled water service through a specified number of equivalent 5/8 -inch water meters to Agreement with Regency Village at Dublin. LLC be provided on the parcel which will be served by the District, or to provide the wastewater capacity in terms of flow and strength allocated to the parcel to be served by the District, or both. F. District — hereinabove defined. G. District Code — the District Code of the Dublin San Ramon Services District, as adopted, and as amended from time to time by the District's Board of Directors. H. Local Wastewater Capacity Fee — defined in the District Code, Section 3.70.010.C.2, as follows: Local wastewater capacity reserve fees for service from and use of the District's wastewater collection system, based on average daily flow proposed to be discharged to the wastewater system, within the area served by the District or a specified portion thereof, as estimated by the District Engineer. L Non - transferability of certificate of capacity rights — defined in the District Code, Section 3.60.040, as follows: Capacity rights, when a certificate therefor is issued, shall attach to and run with the lot or parcel of land for which the certificate was issued; capacity rights for multiple parcels, including landscaped parcels along roadways, under common ownership and served by a single irrigation water meter shall attach to and run with the parcels of land for which the certificate was issued. The certificate of capacity rights is not transferable except with the land to which it is attached. J. Owner - hereinabove defined. K. Owner's Property — Assessor's Parcel No. 986 - 0033 - 007 -00. L. Regional Wastewater Capacity Reserve Fee — defined in the District Code, Section 3.70.010.C.1, as follows: Regional wastewater capacity reserve fees for service from and use of the District's regional wastewater treatment plant, as determined by the District Engineer, based on the average daily flow, BOD and SS proposed to be discharged to the wastewater system within the area served by the District or a specified portion thereof as estimated by the District Engineer. M. Residential Discharge Equivalency— as defined herein, as follows: Agreement with Regency Village at Dublin, LLC Residential discharge equivalency means a unit of wastewater discharge equal in volume and strength to the discharge of a typical single - family residential user. This shall be 220 gallons per day of flow, 0.42 lb. per day of BOD, and 0.45 lb. per day of SS. N. SS — defined in the District Code, Section 1.20.080, as follows: "SS (suspended solids)" means solids, as measured using the standard laboratory method therefor, that are in suspension in wastewater and which are largely removable by laboratory filtration procedures. Notwithstanding any implication to the contrary, this Agreement shall remain in effect despite the revision or repeal of any of the sections of the District Code, including without limitation those referenced above. 2. Allocated Wastewater Capacity Riizhts. In response to the Applicant's request City shall, subject to the right to terminate set forth in Paragraph 4, allocate Wastewater Capacity Rights to Owner's Property in the amount of 3,304.4 gpd (gallons per day) flow, 6.3109 pounds per day BOD and 6.7518 pounds per day SS [or, 15.02 Residential Discharge Equivalencies, as applicable]. Said allocation shall be provided to Applicant as an equivalent portion of credit toward both Regional Wastewater Capacity Reserve Fee and Local Wastewater Capacity Reserve Fee due for Applicant's Project. Said allocation shall become effective upon Applicant's payment of the remainder of fees due and District issuance to Applicant a Certificate of Capacity Rights for Applicant's Project. In recognition of the benefits flowing from the allocation of additional Capacity Rights to Owner's Property as specified in this Agreement, Owner expressly waives the protections that would otherwise be afforded to Owner by the District Code, including without limitation those sections referenced above, to the extent they are determined by the District to be inconsistent with the provisions of this Agreement. 3. Term of Agreement; Effect of Termination. This Agreement shall become effective upon the date first hereinabove written and, unless earlier terminated pursuant to Paragraphs 4 or 6 hereof, shall expire ten (10) years from the date of issuance of a Certificate of Occupancy pertaining to the Applicant's Project located on Owner's Property. In the event of termination by District pursuant to Paragraph 4 or Paragraph 6 of this Agreement, all rights and privileges of Owner and Applicant hereunder shall cease and terminate, and all Wastewater Capacity Rights allocated pursuant to this Agreement shall forthwith revert to City, and become the property of City, and the Certificate of Capacity Rights issued hereunder shall be amended to reflect the re- allocation to City of all Wastewater Capacity Rights allocated pursuant to this Agreement and the commensurate reduction in Wastewater Capacity Rights allocated to Owner's Property. District or City may, but shall not be required to, Agreement with Regency Village at Dublin, LLC record a Notice of Termination against the Owner's Property upon which the Applicant's Project is or was located. Notwithstanding the foregoing, the Wastewater Capacity Rights allocated to Owner's Property by virtue of the Wastewater Capacity Reserve Fees paid by Applicant shall remain allocated to Owner's Property and shall run with such land, subject to the provisions of to the District Code relating to the reduction, expiration, or termination of Sewer Permits and Capacity Rights. 4. Allocation Expressly Conditional on Continuing Operations: During the term of this Agreement, should the City determine that Applicant's Project has ceased operations, all rights and privileges of Owner and Applicant under this Agreement, shall cease and, upon the written request of City, the District may terminate this Agreement upon five (5) days' written notice, whereupon all Wastewater Capacity Rights allocated pursuant to the Certificate of Capacity Rights issued hereunder shall, as specified in Paragraph 3 (Term of Agreement; Effect of Termination), revert to City, and become the property of City. District's right of termination under this Paragraph 4 is in addition to, and separate from, District's right of termination pursuant to Paragraph 6 (Hold Harmless). 5. Non - Assignability. Neither this Agreement, nor any interest herein, may be assigned, conveyed, or in any manner transferred by Owner or Applicant to anyone, including any successor to the Owner (of the Owner's Property) or any successor to the owner of Applicant's Project, or to or by one or more tenants thereof, without the prior written consent thereto signed by the City Manager and the District's General Manager, which consent may be conditioned upon the signature of the successoi(s) upon a recordable instrument by which the successor(s) assume(s) all of the , rights and obligations of its predecessor under this Agreement, which shall, at the election of either the City of the District, be recorded against the Owner's Property upon which the Applicant's Project is or was located. District and City shall not unreasonably withhold its consent to an assignment to the successive owner(s) of Owner's Property or to the successive owner(s) of Applicant's Project. Notwithstanding the foregoing, no assignment of the Certificate of Capacity Rights issued hereunder, or the Capacity. Rights pertaining thereto, shall be made with respect to any other property than Owner's Property hereinabove defined except as specified in Paragraphs 2 or 4 above. 6. Hold Harmless. Applicant shall hold harmless, defend, and indemnify District, its Board of Directors, officers, employees, consultants, and agents from and against any and all claims, suits, causes of action, or other proceedings for damages, injuries, losses, costs (including attorneys' fees and costs of suit or other dispute resolution processes), or any other liability arising out of, or in connection with, the performance, or failure to perform, any of the duties and obligations of Applicant hereunder. The duty to defend shall include provision for all costs and Agreement with Regency Village at Dublin, LLC fees, including attorneys' fees, associated with such defense, and the selection of defense counsel for District, its Board, officers, employees, consultants, and agents shall be by District. The duty of Applicant to indemnify District shall include the duty to defend as set forth in California Civil Code Section 2778; provided that nothing herein contained shall require Applicant to defend against claims for a liability excluded under the provisions of California Civil Code Section 2782. 7. Successors. If, and to the extent, approved by the City Manager and the District's General Manager pursuant to Paragraph 5 hereof, entitled Non- Assilinability, the duties, responsibilities, and rights pertaining and accruing to the parties hereto, shall run with the land, and be binding upon and inure to the benefit of the successors, administrators, assigns, and transferees of the respective parties hereto, subject to the provisions of to the District Code relating to the reduction, expiration, or termination of Certificate of Capacity Rights and Capacity Rights. 8. Notices. All notices, necessary or convenient to the performance of the parties hereunder, shall be in writing, and may be given to the parties by personal delivery, or by mail,. first class (or equivalent) postage prepaid, addressed in the case of District as follows: Dublin San Ramon Services District 7051 Dublin Boulevard Dublin, CA 94568 -3018 Attention: General Manager in the case of City, as follows: City of Dublin 100 Civic Plaza Dublin, CA 94568 Attention: City Manager in the case of Owner, as follows: Regency Centers 2999 Oak Road, Suite 1000 Walnut Creek, CA 94597 Attention: Pete Knoedler, Senior Vice President 9. Recordation. This Agreement shall be submitted by the District to the County Recorder's Office for the county in which the Owner's Property is located, for recordation in the Official Records thereof, to give notice of the Agreement in the Agreement with Regency Village at Dublin, LLC public records. Upon recordation, the terms, conditions and obligations of the Agreement shall run with such land, subject to the provisions of to the District Code relating to the reduction, expiration, or termination of Certificate of Capacity Rights and Capacity Rights. 10. Paratzraph Headings, Paragraph headings as used herein are for convenience and shall not be deemed to alter or amend the paragraphs headed thereby. 11. Integration, This Agreement comprises the entire agreement between the parties with respect to the subject matter thereof, and supersedes and replaces any and all prior understandings, oral or written, between the parties. [No ficrther text on this page.] Agreement with Regency Village at Dublin, LLC IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and effective as of the date first hereinabove written. DUBLIN SAN RAMON SERVICES DISTRICT, a public agency of the State of California By: Bert Michalczyk, General Manager ATTEST: Nancy G. Hatfield, District Secretary CITY OF DUBLIN IC ATTEST: Caroline Soto, City Cleric Christopher L. Foss, Acting City Manager REGENCY VILLAGE AT DUBLIN, LLC, a Delaware Limited Liability Company By: Regency Centers, L.P., a Delaware Limited Partnership, its sole member Date Agreement with Regency village at Dublin, LLC State of California County of On YA X, t' before me, WV1. Date personally appeared the Officer CIVIL CODE § 9989 Place Notary Seal Above OPTIONAL Sion-afu—r—elaftfotafy Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attache777 nt Title or Type of Document: ." Document Date: �' „� Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited,, ❑ General ❑ Attorney in Fact ❑ Trustee c ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Association • NationalNotary.org a 1- 800 -US NOTARY (1- 800 - 876 -6827) Item #5907 who proved to me on the basis of satisfactory evidence to be the person) whose name is /fie subscribed to the within instrument and acknowledged to me that he /rril /they executed the same in his /he /their authzed capacity(i and that by his /her /t,Mir signature( on the instrument the person ), or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the D. MCCREE Commission # 2038239 "« laws of the State of California that the foregoing Z Notary Public - California z paragraph is true and correct. n Contra Costa County .. My Comm. Expires Sep 2017 WITNESS my hand and official seal. Signature: - ;1 --' Place Notary Seal Above OPTIONAL Sion-afu—r—elaftfotafy Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attache777 nt Title or Type of Document: ." Document Date: �' „� Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited,, ❑ General ❑ Attorney in Fact ❑ Trustee c ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Individual ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Association • NationalNotary.org a 1- 800 -US NOTARY (1- 800 - 876 -6827) Item #5907 Exhibit A Allocated Wastewater Capacity Rights The below chart illustrates the designation breakdown of the 15.02 Residential Discharge Equivalencies. Tenant' Sq. Ft. Dublin San Ramon' Services District DVS Estimate DUE Amount Regency will Cover Location Whole Foods 40,000 34.55 8.64 Parcel 2 Nordstrom Rack 35,000 7.95 1.99 Parcel I HomeGoods 22,000 5.00 1.25 Parcel 1 Restaurant A* 3,800 0.86 0.22 Parcel 4 Restaurant B* 2,200 0.50 0.12 Parcel 1 Restaurant C* 2,000 0.45 0.11 Parcel 1 Restaurant D* 5,500 1.25 0.31 Parcel 1 Retail A* 5,800 1.31 0.33 Parcel 3 Remaining Retail 30,200 6.85 1.71 Parcels 1, 3, 4 & 5 Remaining Restaurant 6,000 1.36 0.34 Parcels 1 & 3 Total 152,500 60.08 15.02 *At the time of this contract, the lease was in negotiation so the name of the business could not be shared. 2260411.1 Agreement xvith Regency Village at Dublin, LLC