HomeMy WebLinkAboutItem 6.3 Pacific Catch Sewer Capacity Rightsor
19 82
/ii � 111
DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
September 16, 2014
Honorable Mayor and City Councilmembers
CITY CLERK
File #1100 -65
Christopher L. Foss, City Manager "
Public Hearing: Agreement Permitting Re- Allocation of Regional and Local Sewer
Capacity Rights with Regency Village at Dublin, LLC and Pacific Catch Inc.
Prepared by Hazel L. Wetherford, Senior Economic Development Analyst
EXECUTIVE SUMMARY:
The City received a request from Pacific Catch Inc. to participate in the City's Sewer Capacity
Assistance Program. Pacific Catch is in contract to lease a commercial suite located at
Persimmon Place. Pacific Catch proposes to use the assistance to offset the costs for their
improvements.
FINANCIAL IMPACT:
Costs associated with review of the Agreement were borne by the City. The value of the sewer
credit assistance (75 %) for local and regional sewer fees is estimated at $140,535 in Dublin San
Ramon Services District fees.
RECOMMENDATION:
Staff recommends that the City Council conduct the public hearing, deliberate and adopt the
proposed Resolution approving an Agreement Permitting Re- Allocation of Regional and Local
Sewer Capacity Rights with Regency Village at Dublin, LLC and Pacific Catch Inc.
Submitted By
Economic Development Director/
Public Information Officer
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
Page 1 of 3 ITEM NO. 6.3
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 14.7 unreserved
Dwelling Unit Equivalents (DUE) available citywide and the available allocation per location is
outlined in the chart below:
The City received a request to participate in the program from Pacific Catch, a fine dining
seafood restaurant, which is in contract to lease an approximately 4,500 sq. ft. commercial suite
with a 1,000 sq. ft. outdoor patio area located at Persimmon Place. This new location will be
Pacific Catch's seventh northern California restaurant. DSRSD has estimated a requirement of
11.25 DUEs for this tenant. Through the Program, Pacific Catch falls within the Dublin Transit
Center /Dublin Crossing designation, and as a Fine Dining user, the City would be able to assist
them with 75% of their local and regional sewer fees, or approximately 8.4375 DUEs (value:
approximately $140,535 in DSRSD fees) of the approximately 14.7 DUEs of excess sewer
capacity that the City has unreserved. This allocation will leave a remaining balance of 6.26
DUEs in the program.
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 presented the request to the Standing Economic Development Committee on August 15,
2014 and they were supportive of the request. This request falls 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 and approve the agreement.
Pursuant to Section 53083(b) of the California Government Code (Assembly Bill 562), the City
of Dublin has provided public notice and will hold a public hearing prior to granting the proposed
economic development subsidy. After conclusion of the Public Hearing, Staff will seek City
Council approval of the proposed agreement (Exhibit A to Attachment 1) between the City,
DSRSD, the property owner and the applicant for the City Manager to execute per Resolution
53 -10 (Attachment 3).
Page 2 of 3
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
A notice was placed in the Tri- Valley Times on September 6, 2014 and on the City's website at
www.dublin.ca.gov notifying the community of the City Council's consideration of the proposed
agreement.
ATTACHMENTS: 1. Proposed Resolution Approving the Agreement Permitting Re-
Allocation of Regional and Local Sewer Capacity with Regency
Village at Dublin, LLC and Pacific Catch Inc.
2. Exhibit A to Attachment 1 — Agreement Permitting Re- Allocation of
Regional and Local Sewer Capacity Rights with Regency Village at
Dublin, LLC and Pacific Catch Inc.
3. Resolution No. 53 -10
Page 3 of 3
RESOLUTION NO. -14
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 AND PACIFIC CATCH, INC.
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
7.2.12.13, 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 DSRSD 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, 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, the City received a request to participate in the Program from Pacific Catch
Inc.; and
WHEREAS, through the Program, the City will be able to assist Pacific Catch Inc. with
the allocation of 8.4375 Dwelling Unit Equivalents (DUEs) (value: approximately $140,535 in
DSRSD fees) of the 14.7 DUEs of excess sewer capacity that the City holds. The 8.4375 DUEs
is 75% of the 11.25 DUEs estimated by DSRSD; and
WHEREAS, but for the existence of this Agreement, Pacific Catch Inc. would not be able
to locate a restaurant in Dublin; 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
sales tax revenue attributable to the development of the restaurant; 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 restaurant; and
WHEREAS, pursuant to Section 53083(b) of the California Government Code (Assembly
Bill 562), the City of Dublin held a duly noticed public hearing prior to granting the proposed
economic development subsidy.
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, Regency Village at Dublin, LLC, and Pacific Catch Inc."
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.
PASSED, APPROVED AND ADOPTED this 16th day of September, 2014 by the
following vote-
AYES-
NOES-
ABSENT-
ABSTAIN
Mayor
ATTEST:
City Clerk
RECORDING REQUESTED BY:
City of Dublin
When Recorded Mail To:
City Clerk
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 & Pacific Catch Inc.
AGREEMENT PERMITTING RE- ALLOCATION OF
REGIONAL AND LOCAL SEWER CAPACITY RIGHTS
This Agreement, made and entered into this day of September, 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 "), REGENCY VILLAGE AT DUBLIN, LLC ( "Owner ") and
PACIFIC CATCH INC. ( "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 & Pacific Catch Inc.
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 — Pacific Catch at the Persimmon Place shopping
center (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
be provided on the parcel which will be served by the District, or to
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
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:
Residential discharge equivalency means a unit of wastewater discharge
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
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 Rights. 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 1856.8 gpd
(gallons per day) flow, 3.5462 pounds per day BOD and 3.7940 pounds per day
SS [or, 8.44 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, provided that lease has been
signed between the tenant and property owner, and 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, unless earlier terminated
pursuant to Paragraphs 4 or 6 hereof. If a lease is not executed within six months
of the signing of this Agreement, the Agreement shall become null and void.
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
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
allocated to Owner's Property. District or City may, but shall not be required to,
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 - Assignabili ty. 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 successor(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
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
Applicant hereunder. The duty to defend shall include provision for all costs and
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 - Assignabili ty, 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
(925) 828 -0515
Attention: General Manager
in the case of City, as follows:
City of Dublin
100 Civic Plaza
Dublin, CA 94568
(925) 833 -6650
Attention: City Manager
in the case of Owner, as follows:
Regency Village at Dublin, LLC
2999 Oak Road, Suite 1000
Walnut Creek, CA 94597
(510) 279 -1800
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
Attention: Pete Knoedler, Senior Vice President
and in the case of Applicant, as follows:
Pacific Catch Inc.
75 Oak Grove Street
San Francisco, CA 94107
(415) 896 -6888
Attention: Steve Stoddard, CEO
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
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. Paragraph 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 further text on this page.]
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
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
LO-A
ATTEST:
Nancy G. Hatfield, District Secretary
Bert Michalczyk, General Manager
CITY OF DUBLIN,
LE
ATTEST:
Christopher L. Foss, City Manager
REGENCY VILLAGE AT DUBLIN, LLC,
Caroline P. Soto
im
Doug Shaffer, Senior Vice President Market Officer
PACIFIC CATCH INC,
LO-A
Steve Stoddard, Chief Executive Officer
Date
Agreement with Regency Village at Dublin, LLC & Pacific Catch Inc.
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:
NOES:
ABSENT:
ABSTAIN
ATTES
City Clerk
Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti
None
Councilmember Hildenbrand
None
Reso No. 53 -10, Adopted 5 -4 -10, Item 8.1 Page 2 of 2
jbj
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 al
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.
Sincerely,
A
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
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