05 - Laserfiche WebLink

BACKGROUND When the Livermore Amador Valley Waste Management Authority (LAVWMA) and Dublin San Ramon Services District (DSRSD) sought sewer expansion projects in the 1980s, LAVWMA and DSRSD needed capital funding to pay for the costs. The City of Pleasanton established a Advance Sewer Sale program (Res. 85 -590) whereby property owners could pay for sewer capacity in advance of development of their property. This Advance Sale Sewer funding helped pay for the sewer expansion projects. The Advance Sale Sewer program included several provisions: (1) sewer connections could not be made until expansion projects were completed; (2) sewer capacity did not guarantee growth management; (3) capacity had to be used on the specific site; (4) capacity could not be sold to other private parties — unless they were buying the specific site; (5) upon connection buyers did not have to pay DSRSD connection fees, but still need to pay City connection fees; (6) and City could buy -back capacity under specific circumstances. In 1986, Victor and Lawrence Lund participated in the Advance Sewer Sale program and purchased sewer capacity for 100 residential units for their two parcels in South Pleasanton. (Exhibit A to the proposed resolution, Attachment 1, is a copy of the Lunds' Advance Sale Sewer permit.). While a portion of the Lund's property was developed in 1987 by Shea Homes (Tract 5680), none of those 129 homes on what is called Lund Ranch I used any of the Advance Sewer Sale capacity. Shea Homes purchased sewer connections itself at the time of building permits. As part of the Advance Sale Sewer program, capacity was also purchased by other property owners. Staff has not done a full audit to determine how much capacity remains unused (like the Lunds). Rather, this is addressed on a case -by -case basis as sites are developed and persons present evidence of Advance Sale Sewer capacity. One exception is Prudential for the Hacienda Business Park. As the business park was originally only a few large parcels, Prudential bought a large amount of Advance Sale Sewer capacity that is being used throughout the business park. As the business park develops, this Advance Sale Sewer capacity is purchased from Prudential by buyers and assigned to buyers' various lots. The business park sewer capacity is tracked, and documents are recorded in the chain of title for lots purchasing the Advance Sale Sewer capacity. As Advance Sale Sewer capacity is assigned and used, the Finance Department does track this for purposes of reporting fees paid to DSRSD, and the Utility Division is also notified. DISCUSSION All of the Lund's 100 residential sewer connections from the Advance Sale Sewer permit remain unused and available. The Lunds have asked the City to modify the 1986 Advance Sale Sewer program and allow them to sell their unused sewer capacity to third parties on sites which are not the original property. The Lunds seek to sell fifty (50) unused residential connections. The Lunds advise that they have an agreement Page 2 of 3