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
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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
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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}
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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
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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
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Letter of Agreement
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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
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Letter of Agreement
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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
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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)
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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:
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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
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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
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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:
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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.
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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
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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
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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.
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