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Director of Operations Services Daniel Smith gave the staff report and said the Economic Development Incentive Program for local businesses also relates to sewer connection fees. The item came from the liaison's work with staff over the last year in working with DSRSD on some of the other issues besides the FAA. Over a year ago, the City of Dublin had some unused sewer capacity, approached DSRSD and asked if they could re- allocate the capacity to those in the City of Dublin, which was allowed through a Municipal Code Amendment. When Pleasanton staff became aware of this, they worked with DSRSD to pursue that same benefit and were able to bring this to the Liaison Committee. At their last meeting the Committee recommended this move forward. He provided details on the program and its use in Pleasanton, reviewed 5 locations with excess sewer capacity which he said could be used for a variety of business types to spur economic development. Available capacity is 48 Dwelling Unit Equivalents (DUE's) for a house, or roughly 10,500 gallons of sewer capacity. A business would be calculated at a different methodology based on how much flow they would use. The capacity will be made available to businesses for a period of 5 years. The program is proposed to run from when it is approved through the end of December 31, 2012. If not all used, both Boards could vote to extend it. He stated that the allocation of DUE's would be a maximum of 25% of what the business would need. Ownership of the capacity remains with the City of Pleasanton and it would remain when the program ends. If the business were to fail or leave town, or if at the end of the 5 year incentive program, that capacity would revert back to the City of Pleasanton. Such an incentive program can be used to lower their cost to open a business expand their business, or relocate. Councilmember Cook - Kallio expressed support of the recommendation, and confirmed with Director of Operations Services that if something happened and a business failed within a year, the DUE's could be reallocated to another business. Mr. Smith added that 2012 staff would need to return and obtain approval, and the program could be structured as to how many DUE's are available. Councilmember Sullivan asked how the selection process works if there is more demand than there are DUE's. Mr. Fialho replied the matter will be referred to the Economic Vitality Committee after Council takes action to discuss over the next couple of months what the criteria should be when evaluating those business requests. He said there is push /pull in the community as to whether or not the City should geographically use them for the downtown as opposed to citywide. Staff's perspective is that the entire community be treated equally, and discussion with the EDC should occur to assist in shepherding development of the criteria. He noted the Committee is comprised of community members and business representatives. Councilmember Sullivan hoped some discussion revolves around where this is really needed, as this may enable a business to start or expand, and without it they cannot, whereas a much larger business does not necessarily need it. Economic Development Director Pamela Ott agreed and said there is an opportunity to look at the program strategically as well and what works best for the City. Councilmember Cook - Kallio questioned and confirmed that if a business fails, the sewer capacity would return to the city but they would not owe the City anything. Vice Mayor Thorne opened the public hearing. There were no speakers, and the public hearing was closed. City Council Minutes Page 5 of 7 November 16, 2010