Loading...
HomeMy WebLinkAbout5.6 Amendment to the Letter of Agreement with the Dublin San Ramon Services District for Continued Administration of the Sewer Capacity Assistance Program STAFF REPORT CITY COUNCIL Page 1 of 2 Agenda Item 5.6 DATE: July 15, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Amendment to the Letter of Agreement with the Dublin San Ramon Services District for Continued Administration of the Sewer Capacity Assistance Program Prepared by: Felicia Escover, Economic Development Manager EXECUTIVE SUMMARY: The City Council will consider approving an amendment to the Letter of Agreement with the Dublin San Ramon Services District for the continued administration of the Sewer Capacity Assistance Program. The amendment consolidates previous agreements and incorporates updated program terms and a 10-year extension of the program through June 30, 2035. STAFF RECOMMENDATION: Adopt the Resolution Approving the Amended Letter of Agreement with Dublin San Ramon Services District for the Continued Administration of the Sewer Capacity Assistance Program. FINANCIAL IMPACT: There is no direct cost associated with executing the amended Letter of Agreement. Extending the Sewer Capacity Assistance Program facilitates the attraction of commercial properties to Dublin, providing a general economic benefit to the City. DESCRIPTION: Background On May 4, 2010, the City Council adopted Resolution No. 53-10 approving the creation of a Sewer Capacity Assistance Program in partnership with Dublin San Ramon Services District (DSRSD). The Program, which has been amended and extended multiple times since its inception, allows the City to transfer unused sewer capacity from City-owned properties to private properties, supporting the recruitment, renovation, and re-use of commercial properties in Dublin. Through the Program, the City initially transferred 66.2 Dwelling Unit Equivalents (DUEs) of 101 Page 2 of 2 sewer capacity. An additional 63.24 DUEs were allocated in January 2015. The Program has successfully attracted restaurants and other businesses to Dublin by helping reduce upfront wastewater-related costs. To date, 17 businesses and/or property owners have participated , leaving a remaining balance of 21.93 DUEs. On May 20, 2025, the City Council adopted Resolution No. 31-25, extending the Program through June 30, 2030. Following this action, DSRSD staff proposed additional updates to streamline Program administration and recommended extending the Program further to June 30, 2035. Key proposed updates include:  DUEs allocated to a parcel will remain with that parcel and may not be reallocated back to the City;  The City will provide a schedule and plan for the use of the remaining DUEs;  The City and DSRSD will meet annually to review and update the Program ; and  The City and District will establish mutually agreed-upon procedures to simplify Program administration. City Staff support these changes, which will enhance long-term economic development efforts by continuing to offset wastewater-related costs for new, expanding, and relocating businesses. The amended Letter of Agreement incorporates these updates and extends the Program accordingly. STRATEGIC PLAN INITIATIVE: Strategy 1: Economic Development, Small Business Support, and Downtown Dublin . Objective D: Continue to evaluate and implement small business programs that provide financial assistance, business development, permit processing, and support services to the community. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted, and the Staff Report was shared with Dublin San Ramon Services District in advance of the meeting. ATTACHMENTS: 1) Resolution Approving the Amended Letter of Agreement with Dublin San Ramon Services District for the Continued Administration of the Sewer Capacity Assistance Program 2) Exhibit A to the Resolution - Amended Letter of Agreement for the Administration of Unused City of Dublin Wastewater Capacity 102 Attachment 1 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 2 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE AMENDED LETTER OF AGREEMENT WITH DUBLIN SAN RAMON SERVICES DISTRICT FOR THE CONTINUED ADMINISTRATION OF THE SEWER CAPACITY ASSISTANCE PROGRAM WHEREAS, the City of Dublin and the Dublin San Ramon Services District (DSRSD) established the Sewer Capacity Assistance Program in 2010 to allow the City to transfer unused sewer capacity from City-owned properties to private properties in order to support economic development and encourage the reuse and renovation of properties in the City ; and WHEREAS, the Program has successfully supported 17 businesses and/or property owners and has served as an effective tool for business attraction ; and WHEREAS, the Program has been amended and extended multiple times since its inception, including through Resolutions No. 53-10, 67-13, 161-14, 34-19, and most recently through 31-25, which extended the Program through June 30, 2030; and WHEREAS, on June 3, 2025, DSRSD adopted Resolution No. 20 -25 formalizing a further 10-year extension of the Program through June 30, 2035, and requested that the City execute a new Amended Letter of Agreement consolidating and replacing all prior agreements; and WHEREAS, the Amended Letter of Agreement includes updated program terms, such as a revised capacity limit of 21.93 Dwelling Unit Equivalents (DUEs), a requirement to submit a written utilization plan, and clarified procedures for allocation and project -specific agreements, as further described in Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby approves the Amended Letter of Agreement with the Dublin San Ramon Services District for the continued administration of the Sewer Capacity Assistance Program. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the agreement, attached hereto as Exhibit A, and make any necessary, non-substantive changes to carry out the intent of this Resolution. BE IT FURTHER RESOLVED that the City Manager is authorized to make changes to the Program’s procedures to streamline the Program’s administration. {Signatures on the following page} 103 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 2 of 2 PASSED, APPROVED AND ADOPTED this 15th day of July 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 104 H:\ENGDEPT\PERMITS\Development\Industrial_Commercial\City of Dublin\City of Dublin DUE Program\Revised Letter of Agreement\Revised Letter of Agreement - DUE reallocation_06.24.2025_final.docx June 24, 2025 Colleen Tribby, City Manager City of Dublin 100 Civic Plaza Dublin, CA 94568 SUBJECT: Amended Letter of Agreement for the Administration of Unused City of Dublin Wastewater Capacity Dear Ms. Tribby: At the request of the City of Dublin (City), on June 17, 2025, the Board of Directors of Dublin San Ramon Services District (District) adopted Resolution No. 20-25(Attachment A) extending certain unused wastewater capacity allocated to City properties. The City wishes to use this wastewater capacity as a credit against wastewater capacity needed for projects on City-owned properties, as credit against wastewater capacity that would otherwise be purchased by new, expanding, or relocating businesses, or as credit against wastewater capacity needed for new development projects (the “Program”). Resolution No. 20-25 acknowledges the prior letter agreements dated May 11, 2010 and February 4, 2016, respectively, and requires a new revised Letter of Agreement between the City and District to consolidate the two existing letter agreements, and to reflect the additional conditions required by the District Board of Directors. Upon the City's approval and acceptance, evidenced by your signature below, this letter will serve as the Amended Letter of Agreement. The conditions and procedures for administering the Program shall be as follows: City shall provide to District Engineer a letter providing the name and contact information for the applicant for the new or expanding business, residential development project, or City Project (hereinafter collectively referenced as the "Project") the City is supporting, the name 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 Attachment 2 Exhibit A to the Resolution 105 Letter of Agreement Page 2 of 3 H:\ENGDEPT\PERMITS\Development\Industrial_Commercial\City of Dublin\City of Dublin DUE Program\Revised Letter of Agreement\Revised Letter of Agreement - DUE reallocation_06.24.2025_final.docx characteristics, including volume and strength in terms of BOD and SS, for the proposed use. Such determination will be based, at the sole discretion of the District Engineer, on 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 of Regulations with respect to commencing wastewater service, including but not limited to the acquisition of all additional DUEs determined to be necessary, the application for a District Facilities Construction Permit and compliance with all conditions thereto, and for paying all fees and changes attributable to the Project. Prior to and as a condition of District authorizing a Project to proceed, City shall sign an agreement with the District, the applicant, and the landowner (if different from the applicant) regarding management of the DUEs allocated for the Project, which agreement shall be substantially in the form attached hereto as Attachment B, which form of agreement shall be revised to conform to this Amended Letter Agreement, and changes made from time to time to pertinent portions of the District Code of Regulations. The Program will be effective for a ten (10) year term, through June 30, 2035, after which date the Program and Amended Letter of Agreement shall terminate and any unused DUE credits made available for reallocation pursuant to the Program will expire. DUEs allocated by the City to any parcel of land for commercial, residential or City projects under the Program shall not be eligible for reallocation back to the City for use on a different parcel should a Program Project fail to proceed. Within one hundred and eighty (180) days after the effective date of this Amended Letter Agreement, the City shall submit to the District a written plan to utilize the remaining DUE credits within the ten (10) years provided. The aggregate total of DUEs allocated under the Program shall not exceed twenty-one and ninety-three hundredths (21.93) DUEs at any time. As of the effective date (which shall be July 1, 2025), this Amended Letter of Agreement shall supersede the letter agreements as required by Resolution No. 9-10 and No. 5-15 106 Letter of Agreement Page 3 of 3 H:\ENGDEPT\PERMITS\Development\Industrial_Commercial\City of Dublin\City of Dublin DUE Program\Revised Letter of Agreement\Revised Letter of Agreement - DUE reallocation_06.24.2025_final.docx signed on May 11, 2010, and July 7, 2016, respectively, and these prior letter agreements shall expire and be of no further force or effect. If this Amended Letter of Agreement is satisfactory to the City, please sign and return one copy to the District. Sincerely, Jan R. Lee General Manager ACCEPTED for City of Dublin ___________________________ ________ Colleen Tribby Date City Manager Attachments: (A) DSRSD Board Resolution No. 20-25 (B) Dublin Sewer Capacity Transfer Agreement template (C) Letter of Agreement for the Administration of Unused City of Dublin Sewer Capacity (Res No. 9-10) (D) Letter of Agreement for the Administration of Unused City of Dublin Sewer Capacity (Res No. 5-15) JY cc: Steve Delight, District Engineer 107 108 109 110 111 112 113 AGREEMENT PERMITTING REALLOCATION OF REGIONAL AND LOCAL SEWER CAPACITY RIGHTS This Agreement, made and entered into this _______ day of _________________, 20__, 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”), PROPERTY OWNER’S NAME IN ALL CAPS (“Owner”) and APPLICANT’S NAME IN ALL CAPS (“Applicant”); WITNESSETH: 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 WHEREAS, under the circumstances specified in, and pursuant to the provisions of, Resolution No. ______, 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 – (DESCRIPTION OF PROJECT) 1 114 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 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. I. Non-transferability of certificate of capacity rights – defined in the District Code, Section 3.60.040, as follows: 2 115 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. __________. 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 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 xxxxx gpd (gallons per day) flow, xxxxx pounds per day BOD and xxxxx pounds per day SS [or, xx.xx 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 3 116 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, 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 4 117 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 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-Assignability, 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: 5 118 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: Applicant Company Name Applicant Street Address Applicant City, State, and Zip Attention: Applicant Contact Person and Title and in the case of Applicant, as follows: Applicant Company Name Applicant Street Address Applicant City, State, and Zip Attention: Applicant Contact Person and Title 9. Recordation. This Agreement shall be submitted by the 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. 6 119 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:_______________________________ General Manager ATTEST: _________________________________ District Secretary City of Dublin, By:_______________________________ City Manager ATTEST: _________________________________ Name & Title __________________________________ [TYPE Owners’s Name & Title Here] __________________________________ [TYPE Applicant’s Name & Title Here] _____________________ Date 7 120 121 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and effective as of the date first hereinabove written. APPLICANT COMPANY NAME By:_________________________ ______ Applicant Contact Person, Title 9 122 ACKNOWLEDGMENT State of California County of _____________________________) On _________________________ before me, _________________________________________ (insert name and title of the officer) personally appeared ______________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 123 124 125 126 127 128 129