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BACKGROUND <br /> In a letter dated July 12, 2010, the City requested that the City be allowed to transfer <br /> unused sewer capacity at City owned properties to other private properties to stimulate <br /> businesses development within the City of Pleasanton, copy attached as Attachment 1. <br /> The request parallels a program approved by the District for the City of Dublin on March <br /> 2, 2010. <br /> Staff has verified that five (5) city owned facilities combined have 47.8 DUEs in excess <br /> of facility requirements. District General Counsel has determined that the Board has the <br /> authority, under District Code sections dealing specifically with sewer capacity for public <br /> agencies, to allow the City to implement the requested program. <br /> The proposed program authorizes the General Manager to enter into an agreement with <br /> the City of Pleasanton to implement the program. The letter agreement will allow the <br /> City to transfer City owned DUEs to new, expanded, or relocated businesses and <br /> residential units as authorized by the City in writing. The transfer may be up to twenty <br /> five percent (25 %) of the total new DUEs required by the business. The total cumulative <br /> transfers under the program shall not exceed 47.8 DUEs. The program shall expire on <br /> December 31, 2012 unless extended by Resolution of the DSRSD Board. The letter of <br /> agreement also requires a formal agreement with the affected property owner that will <br /> acknowledge that the city can reclaim the capacity, a property right of the property <br /> owner under the District Code, should the authorized business fail. The formal <br /> agreement must be recorded against the property. <br /> Administration of the program will be similar to how the program is administered with the <br /> City of Dublin and will require minimum City staff time. The DUEs expire after a five <br /> year term and revert to City ownership. The business will then be required to purchase <br /> additional DUE's at that time based on the five year average usage numbers. <br /> Submitted by: <br /> Fiscal Review Approv by: <br /> Daniel Smith Emily E. Wagner Nelson Fialho <br /> Director of Operations Services Director of Finance City Manager <br /> Attachments: <br /> 1. Letter to Dublin San Ramon Services District dated July 12, 2010 <br /> 2. Draft DSRSD Resolution <br /> 3. Draft Agreement between District and City permitting reallocation of sewer <br /> capacity <br /> Page 2 of 2 <br />