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Planning Director Patterson presented the staff report and described the proposed resolution conditionally granting the transfer of 200,000 gallons per day of sewer capacity rights from Rohm and Haas California, Inc. to Pacific Shores Limited Partnership. Director Patterson advised that Diamond Shamrock Corporation purchased approximately 500,000 gallons of excess sewer capacity in 1978 and since that time there had been several sales of some of that capacity to other residential users, and a subsequent sale to Rohm and Haas of California. At this time there is a request for the sale of 200,000 gallons to Pacific Shores Limited Partnership. The sale in no way influences the decision that will have to be made about the property in question. One of the conditions to the agreement states that the property must be annexed to the City before the capacity can be used, and the other states that once construction starts on any project on that site, they can no longer sell any of the remaining capacity they may have left. There is no impact on City finances nor resources at all, it is a private transaction that requires approval of the City. 2. Open public hearing; Mayor Pro Tem Hartnett opened the public hearing at 8:48 P.M. MINUTE ORDER NO. 95~188 3. Hear public comment; Mayor Pro Tem Hartnett invited all those who wished to speak to this issue to please come forward, and called on those in the audience who had submitted speaker's cards. Wesley Skow, 505 Montgomery Street, San Francisco, with Latham and Watkins representing Rohm and Haas California, Inc., requested that the Council consent to the transfer of 200,000 gallons of sewerage capacity rights, but with two modifications to the proposed resolution found in Paragraph 4 Sections (b), (c), (d) and ( e) as outlined by Director Patterson: that the Pacific Shores property be annexed to the City prior to their ability to use the rights being transferred, and that at any time prior to the attachment of the use of those rights that those rights could be subsequently transferred. Mr. Skow stated Pacific Shores wished to be able to transfer any excess capacity rights. Those rights were created by contract between the City and Diamond Shamrock Corporation and some of that capacity had been sold and is worth about $2.00 per gallon. Rohm and Haas has a substantial investment and wants to sell 200,000 gallons to Pacific Shores Limited Partnership. In 1991 and 1992 the City and Rohm and Haas discussed the City purchasing those capacity rights and the City declined to purchase the sewerage capacity rights (the City had the right of first refusal from the Diamond Shamrock agreement.) The City also declined in 1993 when the rights were sold to Pacific Shores Limited. Regular Meeting Minutes MINUTE BOOK NO. 53 Page No. 345 September 25, 1995 Page 9 . ...---....-.........._0..........._............-..............-................---.-