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Home My WebLink About4.09 - 2563 Sewer Capacity Assistance Program Amendment Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: April 16, 2019 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Amendments to the Sewer Capacity Assistance Program Prepared by: Suzanne Iarla, Management Analyst II EXECUTIVE SUMMARY: The City Council will consider amending the existing Sewer Capacity Assistance Program. By transferring approximately 18 dwelling unit equivalents of sewer capacity into the Program and giving preference for those credits to be used in the Downtown Dublin Specific Plan area, the credits would become a valuable economic development tool to incentivize private commercial development of restaurants and other commercial uses in Downtown. STAFF RECOMMENDATION: Adopt the Resolution Amending the City’s Sewer Capacity Assistance Program. FINANCIAL IMPACT: There is no financial impact associated with this item. DESCRIPTION: On September 18, 2018, the City Council received a presentation on Economic Development Efforts in Downtown Dublin which included a two-year Work Plan. The Work Plan identified various actions for the City to undertake to achieve the City Council’s vision for Downtown Dublin to be a vibrant and dynamic commercial and mixed-use center. One of the actions identified by Staff in the Work Plan was to bring forth changes to the Sewer Capacity Assistance Program (Program) for the City Council’s consideration. At the February 19, 2019 meeting of the Economic Development Committee, Staff presented a proposal to amend the City’s existing Sewer Capacity Assistance Program. Based on input from the Committee Members (Mayor Haubert and Vice Mayor Hernandez), Staff recommends the following amendments to the Program: Allocate approximately 18 additional dwelling unit equivalent s (DUEs) of sewer capacity to the Program. Page 2 of 3 Give preference for the additional DUEs to be used towards projects in the Downtown Dublin Specific Plan (DDSP) area. Background In 2009, the City requested that Dublin San Ramon Services District (DSRSD) allow the City to transfer unused sewer capacity at City -owned properties to other private properties to encourage the recruitment, renovation or re -use of properties in Dublin. 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. DSRSD agreed and in May 2010, the City established a Sewer Capacity Assistance Program with 66.2 DUEs. In 2013, the City Council amended the Program by establishing criteria fo r the allocation of a higher percentage based on user type and location, and specifically set -aside 30 DUEs for the DDSP area. In 2014, the City Council removed the set-aside allocation of DUEs for the DDSP area and expanded the Program to allow projects in all Priority Development Areas to be eligible to receive a higher percentage of sewer capacity allocation based on user type and location. However, in September 2014, the City Council simplified the Program by removing the different percentages for specific geographic areas and adopted citywide rates. In 2016, the City and DSRSD agreed to extend the Program through December 31, 2020. Available DUEs Currently, there are only 3.5 DUEs remaining in the Program. In 2014, Staff reviewed water usage at City facilities including parks and buildings and found an additional 63 DUEs of sewer capacity. DSRSD agreed to maintain these DUEs in an account for future City facility use. Some of these credits were allocated towards development of The Wave (40 DUEs) and Fallon Sports Park Phase 2 (4.55 DUEs). After the transfers to City facilities, approximately 18 DUEs remain unallocated. Economic Development Committee Support On February 19, 2019, the Economic Development Committee, unanimously supported adding approximately 18 DUEs to the Program, to be set aside for the Downtown Dublin Specific Plan area; however, applications for assistance elsewhere could be considered on a case-by-case basis. By transferring the credit of approximately 18 unallocated DUEs into the Program and giving preference to the Downtown area, the credits would become a valuable economic development incentive tool for commercial development of restaurants in Downtown Dublin. STRATEGIC PLAN INITIATIVE: Strategy 4: Focus efforts on ways to strengthen the City's economic vitality, including the Downtown, through public investment and economic development. Page 3 of 3 NOTICING REQUIREMENTS/PUBLIC OUTREACH: N/A ATTACHMENTS: 1. Resolution Allocating Additional Dwelling Unit Equivalents of Sewer Capacity and Amending the City's Sewer Capacity Assistance Program RESOLUTION NO. XX-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* ALLOCATING ADDITIONAL DWELLING UNIT EQUIVALENTS OF SEWER CAPACITY AND AMENDING THE CITY'S SEWER CAPACITY ASSISTANCE PROGRAM WHEREAS, 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; and WHEREAS, the Program, as adopted by the City Council, 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; and WHEREAS, on May 21, 2013, the City Council adopted Resolution 67-13 amending the Sewer Capacity Assistance Program by establishing criteria for the allocation of a higher percentage based on user type an d location, and an allocation of 30 Dwelling Unit Equivalents (DUE) to the Downtown Specific Plan area, and WHEREAS, on March 18, 2014, the City Council adopted Resolution 33 -14 amending the Sewer Capacity Assistance Program by removing the set -aside allocation of DUE in the Downtown Specific Plan area, and broadening the program to includ e all Priority Development Areas as areas that are eligible to receive a higher percentage of sewer capacity allocation based on user type and location; and WHEREAS, on September 16, 2014, the City Council adopted Resolution 161-14 amending the City's Sewer Capacity Assistance Program and established the criteria for program implementation including the percentage of DUEs available citywide per user type and square footage noted in the table below: User Type Fine Dining Maximum Amount of DUE assistance available citywide based on square footage Fine Dining Greater than 5,000 sf - 50% Between 3,500 and 5,000 sf - 75% Less than 3,500 sf - 100% Casual Dining (excluding fast food) Greater than 5,000 sf - 25% Between 3,500 and 5,000 sf - 50% Less than 3,500 sf - 75% Specialty Food (Coffee, Deli, Bakery, etc.) Greater than 5,000 sf - 50% Between 3,500 and 5,000 sf - 75% Less than 3,500 sf - 100% Entertainment/Nightlife (Wine Bars/Taprooms, etc.) Greater than 5,000 sf - 50% Between 3,500 and 5,000 sf - 75% Less than 3,500 sf - 100% WHEREAS, the City currently has approximately 18 DUEs of sewer capacity unallocated; and WHEREAS, on September 18, 2018, the City Council approved a Work Plan for Downtown Dublin, which identified making changes to the Sewer Capacity Assistance Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby allocate approximately 18 DUEs of sewer capacity into the Sewer Capacity Assistance Program and establishes a preference for those DUEs to be used in the Downtown Dublin Specific Plan area; however, applications for assistance elsewhere could be considered on a case-by-case basis. PASSED, APPROVED AND ADOPTED this 16th day of April 2019 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor City Clerk