HomeMy WebLinkAbout7.3 Sewer Capacity Assistanceor
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
June 18, 2013
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File #470 -50
Request for Increase in Sewer Capacity Assistance
Prepared by Hazel L. Wetherford, Economic Development Analyst
EXECUTIVE SUMMARY:
The City received a request from Red Mountain Retail Group to increase their Sewer Capacity
Assistance allocation from 25% to 50% under the newly adopted Sewer Capacity Assistance
Program Guidelines. Red Mountain owns the parcel that includes Sprouts, Joann's Fabrics and
Chuck E. Cheese and would propose to use the assistance to offset the costs for the
construction of a pad building for two food tenants — Habit Burger and Freebirds.
FINANCIAL IMPACT:
If the City Council provides direction to Staff to proceed, there could be legal fees associated
with the review of the amendment to the original agreement for sewer capacity.
RECOMMENDATION:
Staff recommends that the City Council authorize, by motion, the allocation of additional sewer
capacity to Red Mountain Retail Group.
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
stimulate economic growth in the community. The Program is designed to support large and
Page 1 of 3 ITEM NO. 7.3
small businesses and encourage the recruitment, renovation or re -use of properties in Dublin.
The Program allows the City to provide a credit of up to twenty -five percent (25 %) of the DSRSD
connection fees that would otherwise be paid by the applicant. The Program currently has 44
unreserved Dwelling Unit Equivalents (DUE) available.
In 2012, the City received a letter from Red Mountain Retail Group, who is the owner of the
shopping center anchored by Sprouts Farmers' Market at the corner of Amador Valley Blvd. and
Amador Plaza Road, requesting participation in the City's Sewer Capacity Assistance Program.
On December 4, 2012 the City Council authorized the allocation of two DUE's to Red Mountain
Retail Group.
On May 21, 2013, the City Council approved amending the Sewer Capacity Assistance Program
to allow a higher allocation percentage within the Downtown and Transit Oriented Districts given
the user type. Under the new Program Guidelines, Red Mountain Retail Group could be
allowed a credit of 50% rather than 25 %.
On May 28, 2013, the City received a letter from Red Mountain Retail Group requesting an
increase of 25% from their original allocation for a total allocation of 50% (Attachment 1). The
City Council is being asked to consider this request seeking an increase in sewer capacity
assistance for the construction of a building pad for two food tenants, namely Habit Burger and
Freebirds Burrito.
Through the Program, the City would be able to assist Red Mountain Retail Group with the
additional allocation of two DUEs, of the 44 DUEs of excess sewer capacity that the City has
unreserved, for a total allocation of four DUEs. The following is a chart of the previous DUE
allocations:
Applicant
Dwelling Unit
Balance
Equivalents
(Starting with 66.2)
BJ's Brewhouse and Restaurant, Fallon
6
60.2
Gateway
Fresh Millions, Tralee
.75
59.45
Regency Centers (Reserved)
14
45.45
Red Mountain Retail (for Habit Burger and
2
43.45
Freebirds Burrito)
Proposed Increase by Red Mountain
2
41.45
Retail
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 recommends that the City Council authorize, by motion, the additional allocation from the
City's excess capacity. Staff will prepare the necessary amendment to the agreement between
the City, DSRSD, and the property owner /applicant for the City Manager to execute per
Resolution 53 -10 (Attachment 2).
Page 2 of 3
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Request Letter from Red Mountain Retail
2. Resolution No. 53 -10
3. Extension Letter and DSRSD Board Minutes Approving Extension
Page 3 of 3
RED MOUNTAIN
Retail Group
May 28, 2013
Ms. Linda Smith
City of Dublin
100 Civic Plaza
Dublin, CA 94568
RE: Sewer Capacity I Increased Allocation of Unused Sewer Credits
City Resolution No. 09 -10
Dear Ms. Smith,
Eric A. Nelson
Vice President
Entitlements I Government Affairs
Direct: 714.245.7405
Cell: 949.510.2070
�11L�.S017,(ll�l "1771 "�?H17.4;. COCtl
SENT VIA EMAIL /US MAIL
If to err is human, then no one is more human than I am. As I prepare to break ground on my
project I am realizing that my costs have increased substantially. While I have exceeded my
original development budget, I am still moving forward and intend on breaking ground in early
June. That said, any additional assistance or increase in sewer allocation would be appreciated.
Please accept this letter as my formal application to allow for the increased re- allocation of
regional and local sewer capacity rights. This request would allow for an increase of 25% from
the original allowance for a total of 50% allocation of unused credits.
If you have any questions or need more information, please do not hesitate to contact me.
Sincerely,
j
Eric A. Nelson
Vice President
Entitlements I Government Affairs
EAN /en
Cc Carson Faris
Project File
1234 E. 17 `" Street, Santa Ana California 92701
RESOLUTION NO. 53 -10
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * * **
APPROVING A LETTER OF AGREEMENT WITH
THE DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) FOR THE
ADMINISTRATION OF UNUSED CITY OF DUBLIN SEWER CAPACITY
WHEREAS, the City Council of the City of Dublin (the "City ") is desirous of improving the
economic viability of the community through the establishment of certain economic incentive
programs; and
WHEREAS, in an attempt to attract new businesses or retain and /or expand existing
businesses that will provide additional jobs and generate additional tax revenues for the City,
as well as for certain residential projects that will likely result in greater economic activity in
Dublin, Staff is requesting City Council consideration of an agreement with the Dublin San
Ramon Services District (DSRSD) that will allow the City to provide unused City sewer capacity
rights to new and /or existing businesses and /or projects; and
WHEREAS, the proposed program would require the City, DSRSD, property owner and
applicant to enter into a agreement permitting the re- allocation of regional and local sewer
capacity rights, and the agreement will be recorded with the Alameda County Recorder's Office,
and
WHEREAS, the City Council finds it is in the public interest to enter into this agreement
because the City and its residents will benefit from increased revenues received from both sales
tax revenue that it may not otherwise receive, and from the increase in the property taxes as a
result of improvements to the property; and
WHEREAS, the City Council further finds that the City and its residents may also benefit
from the creation of new jobs in the City that will occur when a new business is established or
an existing business is expanded; and
WHEREAS, the City Council further finds that the City and its residents may also benefit
from the creation of construction jobs created from residential projects that are developed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the Letter of Agreement with the Dublin San Ramon Services District (DSRSD)
for the Administration of Unused City of Dublin Sewer Capacity (attached as Exhibit A).
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the
agreement substantially in the form attached hereto and to undertake such action as may be
necessary and desirable to carry out the intent of this resolution.
Page 1 of 2
PASSED, APPROVED AND ADOPTED this 4th day of May, 2010, by the following vote:
AYES: Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti
NOES: None
ABSENT: Councilmember Hildenbrand
ABSTAIN: None
ATTES
City Clerk
Reso No. 53 -10, Adopted 5 -4 -10, Item 8.1 Page 2 of 2
Mayor
DUBLIN
SAN RAMON
SERVICES
DISTRICT
Ms. Joni Pattillo
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
April 21, 2010
Subject: Letter of Agreement for the Administration of
Unused City of Dublin Sewer Capacity
Dear Joni:
3aG �2l
7051 Dublin Boulevard
Dublin, California 94568
Phone: 925 828 0515
FAX: 925 829 1180
www.dsrsd.com
As you are aware, at the request of the City of Dublin (City), on March 2, 2010, the Board of
Directors of Dublin San Ramon Services District (District) adopted Resolution No. 9 -10
(Attachment A) authorizing the City to transfer unused sewer capacity allocated to City
properties to commercial properties where the City would like to stimulate economic growth.
The resolution requires a Letter of Agreement between the City and District to define the
administrative procedures for the administration of the program. 'In addition, on April 20, 2010,
the District Board of Directors adopted Resolution No. 14 -10 (Attachment B) authorizing the
City to also transfer unused sewer capacity to residential development. Upon the City's approval
and acceptance, evidenced by your signature below, this letter will serve as the required Letter of
Agreement.
The procedures for administering the unused capacity transfer program shall be as follows:
• City shall provide to District Engineer, David A. Requa, a letter providing the name of
(and contact information for) the applicant for the new, expanding, or relocating business
(hereinafter, "commercial project ") or residential development project (hereinafter,
"residential project" or collectively "project ") the City is supporting, the name of (and
contact information for) the owner(s) of the property on which the project is located (if
different than the applicant for the project) and the number of dwelling unit equivalents
( "DUEs ") the City desires to allocate to the project.
• The District Engineer shall have the discretion to determine whether the number of DUEs
the City desires to allocate to the project are consistent with the wastewater flow
characteristics, including volume and strength in terms of BOD and SS, for the proposed
use. Such determination will be based, in the sole discretion of the District Engineer, on
Dublin San Ramon Sendces Distnct is a Public Entity EXHIBIT A
Ms. Joni Patillo
Page 2
April 21, 2010
yy 4
• information concerning the wastewater flow characteristics provided by the Applicant,
and/or on a schedule of wastewater flow characteristics for the category or categories of
use classifications determined by the District Engineer to be most applicable to the
proposed use.
• The Applicant shall be responsible for complying with the District Code' with respect to
commencing wastewater service, including the acquisition of all additional DUES
determined to be necessary, the application for a Sewer Permit and compliance with all
conditions thereto, and for paying all fees and charges attributable to the project.
• Prior to and as a condition of District issuance of a Sewer Permit authorizing a
commercial project to proceed, City shall sign an agreement with the District, the
applicant, and the landowner (if a person different from the applicant) regarding
management of the DUEs allocated for the project, which agreement shall be in the form
attached hereto as Attachment C, which form of agreement shall be revised to conform to
changes made from time to time to pertinent portions of the District Code.
• City shall provide District written notification should the applicant's commercial project
fail and the City desires to transfer the allocated DUES back to the City from the owner of
the property.
• The aggregate total of DUEs allocated under this program shall not exceed sixty -six and
two- thirds (66 2/3) DUEs at any time.
No letter request dated after December 31, 2011 by the City to allocate DUES will be
honored by District unless approved by the District Board of Directors.
If this Letter of Agreement is satisfactory to the City, please sign and return one copy to the
District. The District is pleased to have this opportunity to assist the City in these challenging
economic times.
ACCEPTED for CITY OF DUBLIN
JONI PATTILLO
City Manager
Sincerely,
/l A
BERT L. MICHALCZYK
General Manager
Date
1. This is the District Code of the Dublin San Ramon Services District, which contains the pertinent rules and
regulations as adopted by the District's Board of Directors from time to time.
Ms. Joni Patillo
Page 3
April 21, 2010
Attachments:
(A) DSRSD Board Resolution No. 9 -10
(B) DSRSD Board Resolution No. 14 -10
(C) Dublin Sewer Capacity Transfer Agreement
cc: D. Requa
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100 Civic Plaza
Dublin, California 94568
Phone: (925) 833 -6650
Fax: (925) 833 -6651
City Council
(925) 833 -6650
City Manager
(925) 833 -6650
Community Development
(925) 833 -6610
Economic Development
(925) 833 -6650
Finance /Admin Services
(925) 833 -6640
Fire Prevention
(925) 833 -6606
Human Resources
(925) 833 -6605
Parks & Community Services
(925) 556 -4500
Police
(925) 833 -6670
Public Works /Engineering
(925) 833 -6630
I.
www.dublin.ca.gov
October 17, 2011
Mr. Bert Michalczyk
General Manager
Dublin San Ramon Services District
7501 Dublin Boulevard
Dublin, CA 94568
RE: Time Extension to the Letter Agreement for Unused Sewer Capacity
Dear Bert,
The City of Dublin is requesting a time extension of the Letter Agreement between
the City of Dublin and the Dublin San Ramon Services District relating to the
allocation of the City's unused sewer capacity.
The City wishes to extend the time period from December 31, 2011 to December 31,
2013. The City believes that with the adoption and implementation of the
Downtown Specific Plan and other development projects currently underway, that
we will see an increased interest in this program, particularly as it relates to new
dining and restaurants looking in Dublin.
We would appreciate your consideration of this time extension request. As always,
please feel free to contact me with any questions or concerns.
DUBLIN i SERVICES DISTRICT
MINUTES OF A RE' GULAR MEETING OF THE BOARD OF DWI CTORS
.. November 15, 2011
A regular meeting of the Board of Directors was called to order at 6:04 p.m. by President D.L.
(Pat) Howard. Boardmembers present: President D.L. (Pat) Howard, Vice President Richard M.
Halket, Director Daniel J. Scannell, Director Georgean M. Vonheeder- Leopold and Director
Dawn L. Benson. District staff present: Bert Michalczyk, General Manager; David Requa,
District Engineer /Assistant General Manager; Lori Rose, Financial Services Manager /Treasurer;
Dan Gallagher, Operations Manager; Mary Gordon, Organizationai'Services Manager; Carl P. A
Nelson, General Counsel; and Nancy Gamble Hatfield, District Secretary.
1. CALL TO ORDER
2. PLEDGE TO THE FLAG
3. ROLL CALL - Members: Benson, Halket, Howard, Scannell, Vonheeder- Leopold
4. SPECIAL ANNOUNCEMENTS /ACTNITIES
5. PUBLIC COMMENT (MEETING OPEN TO THE PUBLIC) — 6:05 p.m.
6. REPORTS
A. Reports by General Manager and Staff
Event Calendar — General Manager Michalczyk reported on the following:
o The Boardroom temporarily has wireless internet connectivity allowing:
meeting participants to have electronic access to the Board agenda packet
materials for the meeting.
o The holiday season is nearly here with Thanksgiving on Thursday, November
24, Christmas. Eve on Saturday, December 24 and New Year's Eve on
Saturday, December 31. The District Office will be closing to business at
Noon on November 23 . and all day on Friday, December 23 and Friday,
December 30. This will eliminate staff coverage requirements at the front
desk, customer service and permit counters. No extra staff leave is being
granted. Staff has the option to work or take leave and spend more time with
their families around the holidays. Customers will be notified through notices
on the front door and on the web site. This has been done in past years and,
leading up to these holidays, customer traffic dramatically decreases.
Correspondence to and from the Board
o An additional two emails have been received since the last Board meeting in
substantially the same form and titled "Stop Feeding the DSRSD Pigs." The
two email senders are: George 'Williams, 11757 Casa Linda Ct., Dublin, dated
Regular Meetin o£theBoard of Directors November 1S 2011
11/11/2011, and Boris Etinberg, 7690 Quail Creek Cir., Dublin, dated
11/12/2011.
B. Committee Reports
Personnel
November 3, 2011
Wastewater
November 8, 2011
Special Personnel
November 10, 2011
Finance
November 14, 2011
President Howard invited comments on recent committee activities. Directors felt the
available staff reports adequately covered the many matters considered at committee
meetings and made a few comments about some of the committee activities.
C. Agenda enda Mana eg ment (consider order of items)
7. APPROVAL OF MINUTES — Regular Meeting of November 1, 2011
Director Scannell MOVED for the approval of the November 1, 2011 minutes. Director
Benson SECONDED the MOTION, which CARRIED with FIVE AYES.
S. CONSENT CALENDAR
V.P. Halket MOVED for approval of the items on the Consent Calendar. Director
Vonheeder- Leopold SECONDED the MOTION, which CARRIED with FIVE AYES.
A. Authorize Execution of Quit Claim of Easement of Property and Pipeline
Easement with SR Structured Lot Options I LLC - Approved
B. Approve Second Amendment to Bay Area Solids Recycling Facility Joint
Exercise of Powers Agreement —Resolution No. 65 -11- Approved
C. Approve Time Extension for City of Dublin Unused Sewer Capacity Program —
Resolution No. 66 -11— Approved - (PartiallX modified Resolution No. 9 -10)
D. Side Letter Agreement between Professional Employees Bargaining Unit (PEBU)
and Dublin San Ramon Services District GIS Analyst I Salary — Resolution No.
67 -11 - Approved
E. Joint Powers Authority Agreement and Memorandum of Understanding with
California State Association of Counties — Excess Insurance Authority (CSAC-
EIA) Risk Sharing Pool to Purchase Employee Benefits — Resolution No. 68 -11 -
Approved
F. Delegate Authority to General Manager to Act on Behalf of Dublin San Ramon
Services District for California State Association of Counties — Excess Insurance
Authority (CSAC -EIA) — Resolution No. 69 -11 - Approved
2
Regular Meeting of the Board of Directors November 15, 2011
G. Adopt Revised Salary Plan Policy and Rescind Resolution No. 77 -07 — Resolution
No. 70 -11 - Approved
H. Adopt Revised New/Revised Job Classifications and Salary Policy and Rescind
Resolution No. 17 -11— Resolution No. 71 -11 - Approved
I. Upcoming Board Calendar — Approved
Report of Checks and Electronic Disbursements Made — Approved
Date Range Amount
10/24 — 11/06/20/11 $5,443,968.98
9. BOARD BUSINESS — None.
10. BOARDMEMBER ITEMS
Director Scannell mentioned that he attended the Alameda County Special Districts
Association meeting on November 9, 2011 at the Union Sanitary District office and
submitted his report to District Secretary Hatfield.
Director Vonheeder- Leopold reported that she, General Manager Duerig of Zone 7 and
General Manager Michalczyk had an interesting tour of the Zone 7 demineralization
facility. Director Vonheeder - Leopold suggested that other Directors take the same tour if
they have an interest. Director Vonheeder - Leopold noted that she was impressed with
their security and their backup plans for the facility.
President Howard commented he did see the demineralization facility at one time and
would also be interested in a tour of Zone 7's solar facility.
11. CLOSED SESSION
At 6 :11 p.m. the Board went into Closed Session. President Howard announced that
General Counsel Nelson would attend all of the Closed Sessions.
A. Conference with Labor Negotiators — Pursuant to Government Code
Section 54957.6
Agency Negotiators: Bert Michalczyk, General Manager
Mary Gordon, Organizational Services Manager
Employee Organizations: 1. Stationary Engineers, Local 39
2. Mid - Management Employees Bargaining Unit
3. Professional Employees Bargaining Unit
B. Conference with Labor Negotiators — Pursuant to Government Code
Section 54957.6
Replar Meeting of the Board of Directors November 15, 2011
Agency Negotiators: Bert Michalczyk, General Manager
Mary Gordon, Organizational Services Manager,
Employee Organization: Confidential Employees Bargaining Unit
C. Conference with Labor Negotiators — Pursuant to Government Code
Section 54957.6
Agency Negotiator: Beet Michalczyk, General Manager.
Employee Organization: Senior Managers
12. REPORT FROM CLOSED SESSION
At 7:05 p.m. the Board came out of Closed Session. President Howard announced that
there was no reportable action.
13. ADJOURNMENT
President Howard adjourned the meeting at 7:06 p.m.
Submitted by,
�.. o ffi,- Qtr Oakj-W
Nancy Gamble Hatfield
District Secretary
9