The URL can be used to link to this page

Home My WebLink About11/1/2006 - STAFF REPORTS - 5.B.0 PALM 6 9 U C ee�.aa CA[1Fp 1tN�r NOVEMBER 1. 2006 City Council Staff Report NEW BUSINESS Subject: GREASE CONTROL DEVICE INCENTIVE PROGRAM From: City Manager Initiated By: Director of Public Works/City Engineer SUMMARY The City's sewer lines are not designed to carry fats, oil, and grease (FOG) in high concentrations. These elevated concentrations of FOG can result in blockages in the sewer collection system that can cause sewage overflows and increased sewer line maintenance costs_ Both the Palm Springs FOG Ordinance #1682 enacted by the City Council on May 1, 2006 and California regulations require rigorous management of this common problem. To help reduce high concentrations of FOG in the sewer system, The Palm Springs Grease Control Device Subsidy Program was designed to encourage restaurants and Food Service Establishments (FSE) operating within the City limits to reduce or eliminate FOG that is flushed into the sanitary sewer collection system. Approval of this Minute Order will establish a Grease Control Device Incentive program to encourage FSEs to participate in a direct subsidy program where the City provides financial incentives to install or upgrade grease control devices to comply with Ordinance #1682. RECOMMENDATION: Approve Minute Order No. "APPROVING THE CITY OF PALM SPRINGS GREASE CONTROL DEVICE INCENTIVE PROGRAM." STAFF ANALYSIS - The Grease Control Device Incentive Program will allow eligible FSEs one time grants in the amount of: • 50% of the cost for a grease trap up to $1,500 each (limit two per establishment), or; • 50% of the cost for a grease interceptor up to $ 10,000. The total available program funds are $300,000. Eligible FSEs will be reimbursed by the program on a "first -come first -served" basis until the program funds are expended. For FSEs to be eligible for reimbursement, the Applicants mdust: Item No.G . B . City Council Staff Report November 1, 2006 - Page 1 Grease Control Device Incentive Program Own or operate a FSE (as defined within the City Ordinance #1682) within the City limits and be connected to the Palm Springs Sewer collection system. If applicant is a tenant of property in which the grease control device is to serve, applicant must provide proof of multi -year lease on the space to be served by the grease control device; and must show written landlord approval of plans to install the grease control device; • Hold a current City of Palm Springs business license; • If applicant is a new business, both financial records and a business plan must be provided. Costs that are ELIGIBLE for partial reimbursement under this program include: • New, replacement, and expanded grease control devices; • Grease traps and grease interceptors as defined in Ordinance #1682; • Associated appurtenances and installation costs. Costs that are INELIGIBLE for partial reimbursement under this program include: • Ongoing system maintenance after installation; • Lost business during construction/installation of grease control device; • FSE administrative costs to apply for, install, and implement the new grease control device. Applicant must submit official City of Palm Springs Grease Control Device Incentive (Program Application Form with the following required attachments: • Grease Control Device manufacturer's literature and specifications; • Pre -approval and a building permit to construct from City Building Department; and, • A minimum of two bids are required for projects exceeding $10,000 in total cost) for pre -approval at the time the building permit is applied for. Upon acceptance into the Program, the FSE applicant will then complete the installation and provide documentation of completed grease control device installation and/or construction, along with the final cost, proof of payment and contractor lien release form. The City will respond with a commitment or denial letter with 30 business days of application package submittal from Applicants. Finally, the City will send payment to the FSE equivalent to 50 percent of the actual cost, up to the maximums allowed, within 30 business days. City Council Staff Report November 1, 2006 - Page 2 Grease Control Device Incentive Program J^ r� FISCAL IMPACT: [Finance Review: '- ,Agreement No. 4123 with Veolia Water North America approved by Council June 21, 2006 includes in Veolia's Scope of Services a provision wherein Veolia assists the City in administering this program. They are to do this by advancing a $300,000 payment to the City. City is responsible to reimburse Veolia within 180 days in a lump sum or over the life of the Agreement with Veolia at $3,458.84 per month which includes interest at 2% over the Prime Rate. It is staffs intent to repay the $300,000 in a lump sum from funds to be appropriated from the Wastewater Treatment Plant Fund (420-6800). The account number will be established subsequent to adoption of the program. David J. Barakian Director of Public Works/City Engineer David H. Ready, City Ier ATTACHMENTS: 1. Minute Order 2_ Program Tro B laff Assi t City ar ker Administrative Services ,Tjll►tarx.1V01a:4►c a APPROVING THE CITY OF PALM SPRINGS GREASE CONTROL DEVICE INCENTIVE PROGRAM I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order Approving and adopting the City of Palm Springs Grease Control Device Incentive Program, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 1 st day of November, 2006_ James Thompson, City Clerk CITY OF PALM SPRINGS GREASE CONTROL DEVICE INCENTIVE PROGRAM October 2, 2006 Introduction: The Palm Springs Grease Control Device Subsidy Program is designed to encourage restaurants and food service establishments (FSEs) operating within the City limits to reduce or eliminate the fats, oil, and grease (FOG) that is flushed into the sanitary sewer collection system. The City's sewer lines are not designed to carry FOG in high concentrations and the result is blockages causing sewage overflows and increased sewer line maintenance costs. Both the Palm Springs FOG Ordinance #1682 enacted by the City Council on May 1, 2006 and California regulations require rigorous management of this common problem_ In response, the City of Palm Springs invites FSEs to participate in a direct subsidy program where the City provides financial incentives to install or upgrade grease control devices to comply with Ordinance #1682. Amount of Assistance: FSEs will be eligible for one time grants in the amount of: 0 50% of the cost for a grease trap up to $1,500 each (limit two per establishment), or; • 50% of the cost for a grease interceptor up to $ 10,000. The total program funds available are $3 D0,000. The "first -come first -served" program will end when these funds are expended. Eligibility of Applicants: Applicants must: Own or operate a FSE (as defined within the City Ordinance #1682) within the City limits and be connected to the Palm Springs Sewer collection system. If applicant is a tenant of property in which the grease control device is to serve, applicant must provide proof of multi -year lease on the space to be served by the grease control device; and must show written landlord approval of plans to install the grease control device; • Hold a current City of Palm Springs business license; o If applicant is a new business, both financial records and a business plan must be provided. Fligibility of Improvements: Costs that are eligible for partial reimbursement under this program include: • New, replacement, and expanded grease control devices; • Grease traps and grease interceptors as defined in Ordinance #1682; • Associated appurtenances and installation costs. Ineligible Improvements: Costs that are ineligible for partial reimbursement under this program include: • Ongoing system maintenance after installation; • Lost business during construction/installation of grease control device; • FSE administrative costs to apply for, install, and implement the new grease control device. Documentation Required: Required documents will include: + Manufacturing literature and specifications that illustrate device compliance with Ordinance #1682; • Obtain pre -approval of device and a permit to construct from City Building Department; • A minimum of two bids will be required for projects exceeding $10,000 in total cost. Application Process. • Applicant must submit official City of Palm Springs Grease Control Device Incentive Program Application Form with required attachments for pre -approval at the time the building permit is applied for; • The City will respond with, a commitment or denial letter within 30 business days of application package submittal; • Upon acceptance into the program, the FSE applicant will then complete the installation and provide documentation of completed grease control device installation and/or construction, along with the final cost, proof of payment and contractor lien release form; ■ The City will then send payment to the FSE equivalent to 50% of the actual cost, up to the maximums allowed, within 30 business days. Application Form: CITY OF PALM SPRINGS ; Fl WAI �[K�7►Y Y:U711 U / Cy 14Ci1 �1`►f1 Y ►9 al7:iIZH:7:�►T/ I APPLICATION FORM The City of Pahn Springs will provide a rebate of up to 50 percent of the cost for a grease trap up to $1,500 (limit two per establishment), or 50 percent of the cost for a grease interceptor up to $ 10,000. Submit completed applications to Mr. Dave Barakian, City Engineer. City of Palm Springs, 3200 East Tahquitz.. Canyon Way, Palm Springs, California 92262_ Rebates will be provided within 30 days after receipt of documentation showing proof of installation of the grease control device, proof of payment for the grease control device, and a contractor lien release form. Name: Mailing Address: Telephone: (Daytime) (Evening) Is Applicant the owner of the property at which the grease control device is to be located? (Yes or No): If Applicant is not same as property owner, provide such person's name, mailing address, and telephone number at which he/she can be reached. Name: Address: Telephone: If Applicant is not property owner, please indicate tern of lease (number of years) for occupying space to house business: year(s). Please attach copy of lease. B. PROPERTY AND BUSINESS INFORMATION .Address of property to house grease control device: Name of business to be served by grease control device: Provide brief description of the nature of the business and the type of food service to be offered: Is this a new business? 'Yes No. If a new business, provide a copy of business plan, showing income sources and cash flow for at least two years. If an existing business, provide a copy of federal and state income tax return for past five years. Note: ALL personal and business information will be kept strictly confidential. C. GREASE TRAP REQUIREMENTS State size of grease control device being required to serve the business: Gallons. Estimated cost of grease control device: $ Attach copies of proposals for installation of grease control device(s). A minimum of two proposals will be required for costs greater then $10,000. D. PROPERTY OWNER'S ACKNOWLEDGEMENT (Required if applicant is not property owner.) As owner of the property located at: in Palm Springs, California, I acknowledge that the applicant is seeking assistance under the City of Palm Springs Grease Control Device Incentive Program, and is a tenant of the above -stated property. Further, I have given permission for the applicant to have a grease control device installed, in compliance with applicable regulations of the City of Palm Springs, to serve the business at the property identified above. Name of Owner: Signature: E. ASSURANCES I hereby assure that all information provided within this application for assistance under the City of Palm Springs Grease Control Device Incentive Program is true and accurate. If any information provided herein is found not to be true and accurate. I acknowledge that the City of Palm Springs may choose not to give this application furtber consideration. Name of Applicant: Signature: Application received: Application received by: