16 - Laserfiche WebLink

BACKGROUND In 2010, the City of Pleasanton requested of Dublin San Ramon Services District (DSRSD) the City be allowed to transfer unused sewer capacity — described as DUEs, or dwelling unit equivalents — at City-owned properties to other private properties to stimulate business development within the City of Pleasanton. This request paralleled a program approved by DSRSD for the City of Dublin in March 2010. The City Council and the DSRSD Board of Directors approved Pleasanton's participation in the Regional Sewer Capacity Allocation Program in November 2010. At the time, five City-owned facilities had a combined 47.8 DUEs in excess of facility requirements, which the total cumulative transfers under the program could not exceed. Following this approval to participate in the program the City's Economic Vitality Committee (EVC) provided input on criteria for program implementation. The EVC expressed an interest in keeping the program as broadly available as possible (not specific to industry sector or business type) to be used on a first-come, first-served basis. Additionally, as a majority of projects that request such assistance are submitted by small and medium-sized companies occupying 10,000 square feet or less, the committee members felt the allocation would naturally be apportioned out to many businesses instead of being allocated to one large user. DISCUSSION The program allows the City to transfer City-owned DUEs to new, expanded, or relocated businesses under the terms of a Regional Sewer Capacity Allocation Agreement. The transfer may be up to twenty-five percent (25%) of the total new DUEs required by the business. The DUEs transfer expires after a five-year term and reverts to City ownership, at which time the business is required to purchase the capacity needed (based on five-year average usage numbers). Ownership of the capacity remains with the City in case of business failure, relocation, or at the end of the five year incentive program. The program has been administered by the Economic Development Department in coordination with the Community Development Department's Building Division. To date, two businesses have elected to participate in the program, allocating .63 DUEs, and a third is preparing to do so, using 2.61 DUEs. This leaves 44.56 DUES available to be used. Numerous other businesses have considered using the program but for a variety of business-specific reasons have not done so. The initial program was to expire on December 31, 2012 unless extended by resolution of the DSRSD Board. Inasmuch as a small portion of the total DUEs available have been allocated, staff believes this program is a valuable part of the City's business retention and attraction efforts and helps to maintain Pleasanton's cornpetitive position as a location that values business. The DSRSD Board approved such a resolution (Attachment 1) and staff is therefore noting for the City Council extension of the City's participation in the Regional Sewer Capacity Allocation Program through December 31, 2014, at which time an additional extension could be considered. Page 2 of 3