HomeMy WebLinkAbout4.7 Sewer Capacity Assist Bay Area Taps or nU,��
19 82 STAFF REPORT CITY CLERK
` CITY COUNCIL File #1100-65
DATE: May 5, 2015
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager "
SUBJECT: Request for Sewer Capacity Assistance
Prepared by Hazel L. Wetherford, Senior Economic Development Analyst
EXECUTIVE SUMMARY:
The City received requests from Bay Area Taps, LLC (dba Bay Area Taps Beer Pub) and H2P
JINBI, Inc. (dba GoGoong Korean BBQ) to participate in the City's Sewer Capacity Assistance
Program. Bay Area Taps Beer Pub is in contract to lease a commercial suite located at 5300
Iron Horse Parkway (The Eclipse development site located in the Eastern Dublin Transit
Center), and GoGoong Korean BBQ has signed a lease for a commercial suite at 7178 Regional
Street (Almond Plaza shopping center located in the Downtown Specific Plan area). Both
businesses propose to use the assistance to offset the costs for their improvements.
FINANCIAL IMPACT:
If the City Council provides direction to Staff to proceed, there could be legal fees associated
with the review of the agreements for sewer capacity.
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve both requests to participate in the
City's Sewer Capacity Assistance Program.
r .
Submitted by Reviewed By
Economic Development Director/ Assistant City Manager
Public Information Officer
DESCRIPTION:
On May 4, 2010, the City Council adopted Resolution 53-10 approving a Letter Agreement with
the Dublin San Ramon Services District (DSRSD) for the Administration of Unused Sewer
Capacity for the City of Dublin.
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. 4.7
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 7.74 unreserved Dwelling Unit Equivalents (DUE)
available citywide and the available allocation per location is outlined in the chart below:
Greater than 5,000 sf-50%
Fine Dining Between 3,500 and 5,000 sf-75%
Less than 3,500 sf- 100%
Casual Dining Greater than 5,000 sf-25%
(excluding fast food) Between 3,500 and 5,000 sf-50%
Less than 3,500 sf-75%
Specialty Food Greater than 5,000 sf-50%
(Coffee, Deli, Bakery,etc.) Between 3,500 and 5,000 sf-75%
Less than 3,500 sf- 100%
Entertainment/Nightlife Greater than 5,000 sf-50%
(Wine Bars/Taprooms, Between 3,500 and 5,000 sf-75%
etc.) Less than 3,500 sf- 100%
Bay Area Taps Beer Pub
The City received a request to participate in the program from Bay Area Taps Beer Pub, which
is in contract to lease an approximately 1,180 sq. ft. commercial suite located at 5300 Iron
Horse Parkway. Bay Area Taps Beer Pub is a specialty craft beer taproom. DSRSD has
estimated a requirement of 0.86 DUE for this tenant. Through the Program, Bay Area Taps falls
within the Entertainment/Nightlife user type and within the less than 3,500 sq. ft. category.
Based on the above criteria, the City would be able to assist them with up to 100% of their
regional and local sewer fees which is equal to approximately 0.86 DUE (value: approximately
$14,263 in DSRSD fees). This allocation of 0.86 DUE to Bay Area Taps would leave an
unreserved balance of approximately 6.88 DUES in the Program.
GoGoong Korean BBQ
The City also received a request to participate in the program from GoGoong Korean BBQ,
which has signed a lease for an approximately 2,040 sq. ft. commercial suite at Almond Plaza.
GoGoong Korean BBQ is a family-friendly restaurant specializing in traditional Korean food.
DSRSD has estimated a requirement of 4.12 DUES for this tenant. Through the Program,
GoGoong Korean BBQ falls within the Casual Dining (excluding fast food) user type and within
the less than 3,500 sq. ft. category. Based on the above criteria, the City would be able to
assist them with up to 75% of their regional and local sewer fees; however, Staff's
recommendation is to assist them with 50% of their regional and local sewer fees which is equal
to approximately 2.06 DUES (value: approximately $37,521 in DSRSD fees). This allocation of
2.06 DUES to GoGoong Korean BBQ would leave an unreserved balance of approximately 4.82
DUES in the Program.
Page 2 of 3
Staff believes that the investment of sewer capacity at both locations will further assist in the
City's economic development efforts to bring high quality retail and restaurants to the Dublin
community that will likely result in higher sales tax revenues to the City.
Staff presented the requests to the Standing Economic Development Committee on April 20,
2015, as these requests fall under the Committee's purview to provide policy guidance and
direction on economic development activities. The Committee was supportive of the requests
and is requesting that the full City Council consider the request.
Staff recommends that the City Council, by motion, approve both requests to participate in the
City's Sewer Capacity Assistance Program. If the City Council gives direction to proceed with
the allocations, Staff will prepare the necessary agreements between the City, DSRSD, the
property owner, and the applicant for the City Manager to execute per Resolution 53-10
(Attachment 1).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Resolution No. 53-10
Page 3 of 3
RESOLUTION NO. 53 - 10
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * ** *
APPROVING A LETTER OF AGREEMENT WITH
THE DUBLIN SAN RAMON SERVICES DISTRICT (DSRSD) FOR THE
ADMINISTRATION OF UNUSED CITY OF DUBLIN SEWER CAPACITY
WHEREAS, the City Council of the City of Dublin (the "City") is desirous of improving the
economic viability of the community through the establishment of certain economic incentive
programs; and
WHEREAS, in an attempt to attract new businesses or retain and/or expand existing
businesses that will provide additional jobs and generate additional tax revenues for the City,
as well as for certain residential projects that will likely result in greater economic activity in
Dublin, Staff is requesting City Council consideration of an agreement with the Dublin San
Ramon Services District (DSRSD) that will allow the City to provide unused City sewer capacity
rights to new and/or existing businesses and/or projects; and
WHEREAS, the proposed program would require the City, DSRSD, property owner and
applicant to enter into a agreement permitting the re-allocation of regional and local sewer
capacity rights, and the agreement will be recorded with the Alameda County Recorder's Office,
and
WHEREAS, the City Council finds it is in the public interest to enter into this agreement
because the City and its residents will benefit from increased revenues received from both sales
tax revenue that it may not otherwise receive, and from the increase in the property taxes as a
result of improvements to the property; and
WHEREAS, the City Council further finds that the City and its residents may also benefit
from the creation of new jobs in the City that will occur when a new business is established or
an existing business is expanded; and
WHEREAS, the City Council further finds that the City and its residents may also benefit
from the creation of construction jobs created from residential projects that are developed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the Letter of Agreement with the Dublin San Ramon Services District (DSRSD)
for the Administration of Unused City of Dublin Sewer Capacity (attached as Exhibit A).
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the
agreement substantially in the form attached hereto and to undertake such action as may be
necessary and desirable to carry out the intent of this resolution.
Page 1 of 2
PASSED, APPROVED AND ADOPTED this 4th day of May, 2010, by the following vote:
AYES: Councilmembers Biddle, Hart, Scholz, and Mayor Sbranti
NOES: None
ABSENT: Councilmember Hildenbrand
ABSTAIN: None /
1� jbj
Mayor
ATTES
City Clerk
Reso No.53-10,Adopted 5-4-10, Item 8.1 Page 2 of 2
-3a6
ON SE,p �
r
DUBLIN a 7051 Dublin Boulevard
SAN RAMON Dublin,California 94568
y
SERVICES
Phone:925 828 0515
\ u)++« '���1 FAX:925 829 1180
DISTRICT ��sINCE 19 wwwAsrsd.com
April 21, 2010
Ms. Joni Pattillo
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Subject: Letter of Agreement for the Administration of
Unused City of Dublin Sewer Capacity
Dear Joni:
As you are aware, at the request of the City of Dublin (City), on March 2, 2010, the Board of
Directors of Dublin San Ramon Services District (District) adopted Resolution No. 9-10
(Attachment A) authorizing the City to transfer unused sewer capacity allocated to City
properties to commercial properties where the City would like to stimulate economic growth.
The resolution requires a Letter of Agreement between the City and District to define the
administrative procedures for the administration of the program. 'In addition, on April 20, 2010,
the District Board of Directors adopted Resolution No. 14-10 (Attachment B) authorizing the
City to also transfer unused sewer capacity to residential development. Upon the City's approval
and acceptance, evidenced by your signature below,this letter will serve as the required Letter of
Agreement.
The procedures for administering the unused capacity transfer program shall be as follows:
• City shall provide to District Engineer, David A. Requa, a letter providing the name of
(and contact information for) the applicant for the new, expanding, or relocating business
(hereinafter, "commercial project") or residential development project (hereinafter,
"residential project" or collectively "project") the City is supporting, the name of (and
contact information for) the owner(s) of the property on which the project is located (if
different than the applicant for the project) and the number of dwelling unit equivalents
("DUEs")the City desires to allocate to the project.
0 The District Engineer shall have the discretion to determine whether the number of DUEs
the City desires to allocate to the project are consistent with the wastewater flow
characteristics, including volume and strength in terms of BOD and SS, for the proposed
use. Such determination will be based, in the sole discretion of the District Engineer, on
Dublin San Ramon Sendces Distnct is a Public Entity EXHIBIT A
Ms.Joni Patillo
Page 2
April 21,2010
• information concerning the wastewater flow characteristics provided by the Applicant,
and/or on a schedule of wastewater flow characteristics for the category or categories of
use classifications determined by the District Engineer to be most applicable to the
proposed use.
• The Applicant shall be responsible for complying with the District Code' with respect to
commencing wastewater service, including the acquisition of all additional DUES
determined to be necessary, the application for a Sewer Permit and compliance with all
conditions thereto, and for paying all fees and charges attributable to the project.
• Prior to and as a condition of District issuance of a Sewer Permit authorizing a-
commercial project to proceed, City shall sign an agreement with the District, the
applicant, and the landowner (if a person different from the applicant) regarding
management of the DUEs allocated for the project, which agreement shall be in the form
attached hereto as Attachment C, which form of agreement shall be revised to conform to
changes made from time to time to pertinent portions of the District Code.
• City shall provide District written notification should the applicant's commercial project
fail and the City desires to transfer the allocated DUES back to the City from the owner of
the property.
• The aggregate total of DUEs allocated under this program shall not exceed sixty-six and
two-thirds (66 2/3) DUEs at any time.
• No letter request dated after December 31, 2011 by the City to allocate DUES will be
honored by District unless approved by the District Board of Directors.
If this Letter of Agreement is satisfactory to the City, please sign and return one copy to the
District. The District is pleased to have this opportunity to assist the City in these challenging
economic times.
Sincerely,
Ile
A
BERT L. MICHALCZYK
General Manager
ACCEPTED for CITY OF DUBLIN
JONI PATTILLO Date
City Manager
1. This is the District Code of the Dublin San Ramon Services District,which contains the pertinent rules and
regulations as adopted by the District's Board of Directors from time to time.
Ms. Joni Patillo /
Page 3
April 21,2010
Attachments:
(A)DSRSD Board Resolution No. 9-10
(B)DSRSD Board Resolution No. 14-10
(C)Dublin Sewer Capacity Transfer Agreement
cc: D. Requa
H\FNGDF!"I'Ment Item C\FNC'M'M\T)T TRT RQ\nl M AIInrat{n,\t.nP.of A