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Home My WebLink About4.09 Sewer Capacity Assistance or nU,�� 19 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File # 600-40 DATE: July 21, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Request for Sewer Capacity Assistance Prepared by Hazel L. Wetherford, Business Manager EXECUTIVE SUMMARY: The City received requests from 7400 Amador LLC (dba Amador Station Bar & Grill) and East Bay Enterprise Inc. (dba Firehouse Subs) to participate in the City's Sewer Capacity Assistance Program. Amador Station has purchased the vacant property located at 7400 Amador Valley Blvd. (located in the Downtown Specific Plan area), and Firehouse Subs has signed a lease for a commercial suite at 5252 Dublin Blvd., Suite 530 (Persimmon Place shopping center located in the Eastern Dublin Specific Plan area). Both businesses propose to use the assistance to offset the costs for their improvements. FINANCIAL IMPACT: If the City Council provides direction to Staff to proceed, there could be legal fees associated with the review of the agreements for sewer capacity. RECOMMENDATION: Staff recommends that the City Council, by motion, approve both requests to participate in the City's Sewer Capacity Assistance Program. r . Submitted by Reviewed By Economic Development Director/ Assistant City Manager Public Information Officer 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. Page 1 of 3 ITEM NO. 4.9 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 the DSRSD sewer connection fees that would otherwise be paid by the applicant. The Program currently has approximately 4.83 unreserved Dwelling Unit Equivalents (DUE) available citywide and the available allocation per user type is outlined in the chart below: Greater than 5,000 sf-50% Fine Dining Between 3,500 and 5,000 sf-75% Less than 3,500 sf- 100% Casual Dining Greater than 5,000 sf-25% (excluding fast food) Between 3,500 and 5,000 sf-50% Less than 3,500 sf-75% Specialty Food Greater than 5,000 sf-50% (Coffee, Deli, Bakery,etc.) Between 3,500 and 5,000 sf-75% Less than 3,500 sf- 100% Entertainment/Nightlife Greater than 5,000 sf-50% (Wine Bars/Taprooms, Between 3,500 and 5,000 sf-75% etc.) Less than 3,500 sf- 100% Amador Station Bar& Grill The City received a request to participate in the program from Amador Station Bar & Grill, which purchased the vacant property located at 7400 Amador Valley Blvd. (located in the Downtown Specific Plan area). Amador Station will be an approximately 3,873 sq. ft. casual dining restaurant. DSRSD has estimated a requirement of 9.52 DUE for this tenant. Through the Program, Amador Station falls within the Casual Dining user type and within the 3,500 sq. ft. — 5,000 sq. ft. category. Based on the above criteria, the City would be able to assist them with up to 50% of their regional and local sewer fees; however, the Standing Economic Development Committee's recommendation is to assist them with 4 DUE (value: approximately $67,708 in DSRSD fees). This allocation of 4 DUE to Amador Station would leave an unreserved balance of approximately 0.83 DUE in the Program. Firehouse Subs The City also received a request to participate in the program from Firehouse Subs, which has signed a lease for an approximately 1,602 sq. ft. commercial suite at 5252 Dublin Blvd., Suite 530 (Persimmon Place shopping center located in the Eastern Dublin Specific Plan area). Firehouse Subs is a family-friendly restaurant specializing in hot subs. DSRSD has estimated a requirement of 2.12 DUE for this tenant. Through the Program, Firehouse Subs falls within the Casual Dining (excluding fast food) user type and within the less than 3,500 sq. ft. category. Based on the above criteria, the City would be able to assist them with up to 75% of their regional and local sewer fees; however, the Standing Economic Development Committee's Page 2 of 3 recommendation is to assist them with the remaining unreserved balance of approximately 0.83 DUE (value: approximately $14,049 in DSRSD fees). This allocation of 0.83 DUEs to Firehouse Subs would leave a zero balance in the Program. Staff believes that the investment of sewer capacity at both locations 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 presented the requests to the Standing Economic Development Committee on June 22, 2015, and they were supportive of the requests. These requests fall under the Committee's purview to provide policy guidance and direction on economic development activities. The Committee is requesting that the full City Council consider the request. Staff recommends that the City Council, by motion, approve both requests to participate in the City's Sewer Capacity Assistance Program. If the City Council gives direction to proceed with the allocations, Staff will prepare the necessary agreements between the City, DSRSD, the property owner, and the applicant for the City Manager to execute per Resolution 53-10 (Attachment 1). NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. 1. ATTACHMENTS: 1. Resolution No. 53-10 Page 3 of 3 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 / 1� jbj Mayor ATTES City Clerk Reso No.53-10,Adopted 5-4-10, Item 8.1 Page 2 of 2 -3a6 ON SE,p � r DUBLIN a 7051 Dublin Boulevard SAN RAMON Dublin,California 94568 y SERVICES Phone:925 828 0515 \ u)++« '��1 FAX:925 829 1180 DISTRICT ��sINCE 19 wwwAsrsd.com April 21, 2010 Ms. Joni Pattillo City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 Subject: Letter of Agreement for the Administration of Unused City of Dublin Sewer Capacity Dear Joni: 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. 0 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 • 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. Sincerely, Ile A BERT L. MICHALCZYK General Manager ACCEPTED for CITY OF DUBLIN JONI PATTILLO Date City Manager 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!"I'Ment Item C\FNC'M'M\T)T TRT RQ\nl M AIInrat{n,\t.nP.of A