Addendum 22 Staff Report Agreement with West Valley Sanitation DistrictMEETING DATE: 6/21/04
ITEM NO.
ADDENDUM
COUNCIL AGENDA REPORT
DATE: JUNE 18, 2004
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER`_�� p1 "
SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT
ADOPT RESOLUTION APPROVING CONTINUATION AGREEMENT
AND AMENDMENT NO.3 TO THE AGREEMENT BETWEEN THE TOWN
OF LOS GATOS AND WEST VALLEY SANITATION DISTRICT TO JUNE
30, 2005 TO ALLOW FOR THE DEVELOPMENT AND
IMPLEMENTATION OF A TRANSITION PLAN TO TRANSFER
MAINTENANCE RESPONSIBILITIES FOR THE LOS GATOS SEWER
COLLECTION SYSTEM FROM THE TOWN OF LOS GATOS TO WEST
VALLEY SANITATION DISTRICT
DISCUSSION:
Attached is an amended Exhibit A to the Resolution Approving Continuation Agreement and
Amendment No. 3, which was included as Attachment 1 in the report distributed on June 17, 2004.
Exhibit A is the Continuation Agreement and Amendment No. 3. This amended agreement makes
a minor change to the last point of agreement (point no. 5) to clarify that if the Town and District
complete the transition prior to the expiration of the continuation agreement, that the continuation
agreement has no further force or effect.
Attachments:
1. Revised Exhibit A, Continuation Agreement and Amendment No. 3 to Attachment 1
Distribution:
Robert R. Reid, District Manager, West Valley Sanitation District, 100 East Sunnyoaks Avenue,
PREPARED BY: PAMELA S. JACOBS
ASSISTANT TOWN MANAGER
N:\MGR\PJacobs\Council Reports\WVSD addendum.wpd
Reviewed by: Assistant Town Manager 0 Town Attorney Clerk Finance
Community Development ri‘A-ph0A-evised: 6/18/04 12:12 pm
Reformatted: 5/30/02
CONTINUATION AGREEMENT AND AMENDMENT NO. 3
TO SEWER AGREEMENT BETWEEN THE TOWN OF•LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
THIS CONTINUATION AGREEMENT is made and entered into this day of
, 2004 by and between the Town of Los Gatos ( hereinafter "Town") and
West Valley Sanitation District of Santa Clara County ( hereinafter "District" ).
RECITALS
WHEREAS, on May 19, 1977 Town entered into an agreement with District entitled
"District 4 — Los Gatos 1977 Sewer Agreement" ( herein referred to as "Agreement" );
and
WHEREAS, on June 13, 2001 Town and District entered into an amendment to the
Agreement to continue said Agreement for a period not to exceed three years; and
WHEREAS, said Agreement and all amendments will terminate on June 30, 2004; and
WHEREAS, Town and District have analyzed current and projected costs of sewer
service and the impacts of new regulations on the future operations and management of
the sanitary sewer system; and
WHEREAS, Town and District desire to transfer all current and future ownership and
associated operation and maintenance responsibilities of the sanitary sewer system within
the Town's jurisdiction to the District;
NOW THEREFORE, for and in consideration of their mutual promises, and subject to
the terms, provisions and conditions hereinafter set forth, the parties do hereby agree as
follows:
1. All of the terms and provisions of the Agreement and all subsequent amendments
remain in full force and effect for a period not to exceed one year from the date of this
Continuation Agreement.
2. During the period of this Agreement a Transition Plan will be implemented to
include the following elements:
A. A Communication Plan that includes press releases to local media, written
communications to all Town sewer users (via both mail and door hangers) and at least
one public information meeting to inform all interested parties about the transfer of sewer
service responsibilities. The Communication Plan will also include communication
procedures to ensure seamless service delivery to customers subsequent to the transfer.
ATTACHMENT 1
EXHIBIT A
B. An Information Transfer Plan that ensures all relevant Town knowledge
and local expertise of the sewer system is transferred to the District. The information will
include all sewer maintenance records and service requests for a minimum of 24 months
prior to the transfer.
C. An Assets Transfer Plan including an analysis by an independent public
financial advisor selected by both parties to determine the current value of sewer systems
assets and a plan to negotiate the transfer or disposition of those assets.
D. Performance Commitments to ensure that Los Gatos customers will
continue to receive a comparable level of service from the District as they do currently
from the Town. These commitments will be in the areas of response time, quality of
service, and customer service.
3. Any extraordinary costs of the aforesaid Transition Plan elements beyond normal
operational responsibilities will be borne solely by the District.
4. It is further agreed that it is the intention of the Town and District to accomplish
the transfer of responsibilities and assets as expeditiously as possible. Date certain
milestones for each of the Transition Plan elements will be set not later than October 1,
2004.
5. Upon completion of all Transition Plan elements and payment of all moneys
owing for transfer of ownership interests, the Town will relinquish all ownership rights
and interests in the sanitary sewer system to the District. If completion of all Transition
Plan elements and payment of all moneys owing for transfer of ownership interests
occurs prior to the expiration of this agreement, then this agreement shall have no further
force and effect.
WITNESS THE EXECUTION HEREOF the day and year first hereinabove written.
APPROVED AS TO FORM: TOWN OF LOS GATOS
TOWN ATTORNEY
By:
Title:
2
DISTRICT COUNSEL
WEST VALLEY SANITATION
DISTRICT OF SANTA CLARA CO.
By:
Title:
3
COUNCIL AGENDA REPORT
DATE: JUNE 16, 2004
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT:
MEETING DATE: 6/21/04
ITEM NO. — •
AGREEMENT WITH WEST VALLEY SANITATION DISTRICT
ADOPT RESOLUTION APPROVING CONTINUATION AGREEMENT AND
AMENDMENT NO.3 TO THE AGREEMENT BETWEEN THE TOWN OF
LOS GATOS AND WEST VALLEY SANITATION DISTRICT TO JUNE 30,
2005 TO ALLOW FOR THE DEVELOPMENT AND IMPLEMENTATION OF
A TRANSITION PLAN TO TRANSFER MAINTENANCE
RESPONSIBILITIES FOR THE LOS GATOS SEWER COLLECTION
SYSTEM FROM THE TOWN OF LOS GATOS TO WEST VALLEY
SANITATION DISTRICT
RECOMMENDATION:
Adopt resolution approving Continuation Agreement and Amendment No. 3 to the agreement
between the Town of Los Gatos and the West Valley Sanitation District to June 30, 2005 to allow
for the development and implementation of a transition plan to transfer maintenance responsibilities
for the Los Gatos sewer collection system from the Town of Los Gatos to West Valley Sanitation
District (Attachment 1).
BACKGROUND:
On November 4, 2002, the Town Council authorized the Town Manager to negotiate and execute
an extension to the current agreement with West Valley Sanitation District to June 30, 2004. At that
time the Town of Los Gatos and West Valley Sanitation District jointly agreed to re-evaluate the
current arrangement between the agencies and engaged Brown and Caldwell, Consulting Engineers
to prepare a report on the current practices and cost of service.
On June 7, 2004, the Town Council directed staff to pursue the transfer of maintenance
responsibilities for the Los Gatos sewer collection system and to bring back to the Council an
extension to the agreem t for a period of one year to allow for th evelopment and implementation
CcvL2co
PREPARED BY: 61HN E. CURTIS PAMELA JACOBS
'rector of Parks and Public Works Assistant Town Manager
Reviewed by: Assistant Town Manager ('Attorney Clerk Finance
Community Development Revi ed: 6/17/04 7:38 am
Reformatted: 5/30/02 N:\B&E\COUNCIL REPORTS\W VSD.agreement.62I04.wpd
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT
JUNE 16, 2004
of a transition plan from the Town of Los Gatos (Town) to West Valley Sanitation District (District).
DISCUSSION:
This Continuation Agreement extends the Agreement for a period of one year, to June 30, 2005, and
requires the Town and the District to develop and implement a transition plan for the transfer of
maintenance responsibilities from the Town to the District. During the one-year extension of the
Agreement, all terms and provisions of the Agreement and previous Amendments remain in full
force and effect.
The transition plan to be developed between the Town and the District will include, but not be
limited to, the following elements:
•
•
A Communication Plan that includes press releases to local media, written communications
to all Town sewer users (via both mail and door hangers) and at least one public information
meeting to inform all interested parties about the transfer of sewer service responsibilities.
The Communication Plan will also include communication procedures to ensure seamless
service delivery to customers subsequent to the transfer.
An Information Transfer Plan that ensures all relevant Town knowledge and local expertise
of the sewer system is transferred to the District. The information will include all sewer
maintenance records and service requests for a minimum of 24 months prior to the transfer.
An Assets Transfer Plan including an analysis by an independent public financial advisor
selected by both parties to determine the current value of sewer systems assets and a plan to
negotiate the transfer or disposition of those assets.
Performance Commitments to ensure that Los Gatos customers will continue to receive a
comparable level of service from the District as they do currently from the Town. The
commitments will be in the areas of response time, quality of service, and customer service.
The Town and District will collaborate on the details to be included in each of the above elements,
to provide a specific and comprehensive game plan for the transfer. The Town and the District may
agree to include additional elements as the Transition Plan is developed. Within 90 days of July 1,
2004, the staff will bring forward to the Town Council a schedule for implementing the Transition
Plan and additional details regarding the individual elements.
n
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT
JUNE 16, 2004
CONCLUSION:
The Town Council has determined that it is in the best interest of the Los Gatos community to
transfer the responsibility for maintenance of the Los Gatos sewer system to the District. The
Continuation Agreement and Amendment No. 3 allows the Town and District to continue
providing services to the community under the current arrangement for a period of one year during
which time a Transition Plan is developed and implemented. Staff recommends that Council adopt
the resolution approving the Continuation Agreement and Amendment No. 3.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA, thus no further action is required.
FISCAL IMPACT:
The fiscal impact of the transfer of maintenance responsibilities from the Town to the District is
yet to be determined; however, it is expected that there will be some reimbursement to the Town
for the sewer assets and that there will be costs associated with the loss of the administrative fee
received from the District, and potentially with the provision of non -sewer related services
currently provided by the sewer crew.
Attachments:
1. Resolution Approving Continuation Agreement and Amendment No. 3
Distribution:
Robert R. Reid, District Manager, West Valley Sanitation District, 100 East Sunnyoaks Avenue,
Campbell, CA 95008-6608
RESOLUTION NO.
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING A
CONTINUATION AGREEMENT AND AMENDMENT NO. 3 TO THE AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY SANITATION DISTRICT TO
JUNE 30, 2005 TO ALLOW FOR THE DEVELOPMENT AND IMPLEMENTATION OF A
TRANSITION PLAN TO TRANSFER MAINTENANCE RESPONSIBILITIES FOR THE LOS
GATOS SEWER COLLECTION SYSTEM FROM THE TOWN OF LOS GATOS TO WEST
VALLEY SANITATION DISTRICT
WHEREAS, on May 19, 1977 Town entered into an agreement with District entitled
"District 4 — Los Gatos 1977 Sewer Agreement" ( herein referred to as "Agreement" ); and
WHEREAS, on June 13, 2001 Town and District entered into an amendment to the
Agreement to continue said Agreement for a period not to exceed three years; and
WHEREAS, said Agreement and all amendments will terminate on June 30, 2004; and
WHEREAS, Town and District have analyzed current and projected costs of sewer
service and the impacts of new regulations on the future operations and management of the sanitary
sewer system; and
WHEREAS, Town and District desire to transfer all current and future ownership and
associated operation and maintenance responsibilities of the sanitary sewer system within the Town' s
jurisdiction to the District.
RESOLVED, that the Town Council of the Town of Los Gatos hereby
approve the Continuation Agreement and Amendment No. 3 to Sewer Agreement
Between the Town of Los Gatos and West Valley Sanitation District, attached hereto
as Exhibit "A" and incorporated herein by this reference, and authorize the Town
Manager to execute the Agreement and Amendment.
PASSED AND ADOPTED at a meeting of the Town Council of the
Town of Los Gatos, California, held on the day of , 2004 by the
following vote:
COUNCIL MEMBERS:
AYES:
ATTACHMENT 1
1
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
2
1
CONTINUATION AGREEMENT AND AMENDMENT NO. 3
TO SEWER AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
THIS CONTINUATION AGREEMENT is made and entered into this day of
, 2004 by and between the Town of Los Gatos ( hereinafter "Town") and
West Valley Sanitation District of Santa Clara County ( hereinafter "District" ).
RECITALS
WHEREAS, on May 19, 1977 Town entered into an agreement with District entitled
"District 4 — Los Gatos 1977 Sewer Agreement" ( herein referred to as "Agreement" );
and
WHEREAS, on June 13, 2001 Town and District entered into an amendment to the
Agreement to continue said Agreement for a period not to exceed three years; and
WHEREAS, said Agreement and all amendments will terminate on June 30, 2004; and
WHEREAS, Town and District have analyzed current and projected costs of sewer
service and the impacts of new regulations on the future operations and management of
the sanitary sewer system; and
WHEREAS, Town and District desire to transfer all current and future ownership and
associated operation and maintenance responsibilities of the sanitary sewer system within
the Town's jurisdiction to the District;
NOW THEREFORE, for and in consideration of their mutual promises, and subject to
the terms, provisions and conditions hereinafter set forth, the parties do hereby agree as
follows:
1. All of the terms and provisions of the Agreement and all subsequent amendments
remain in full force and effect for a period not to exceed one year from the date of this
Continuation Agreement.
2. During the period of this Agreement a Transition Plan will be implemented to
include the following elements:
A. A Communication Plan that includes press releases to local media, written
communications to all Town sewer users (via both mail and door hangers) and at least
one public information meeting to inform all interested parties about the transfer of sewer
service responsibilities. The Communication Plan will also include communication
procedures to ensure seamless service delivery to customers subsequent to the transfer.
EXI-IIBIT A
1
i
B. An Information Transfer Plan that ensures all relevant Town knowledge
and local expertise of the sewer system is transferred to the District. The information will
include all sewer maintenance records and service requests for a minimum of 24 months
prior to the transfer.
C. An Assets Transfer Plan including an analysis by an independent public
financial advisor selected by both parties to determine the current value of sewer systems
assets and a plan to negotiate the transfer or disposition of those assets.
D. Performance Commitments to ensure that Los Gatos customers will
continue to receive a comparable level of service from the District as they do currently
from the Town. These commitments will be in the areas of response time, quality of
service, and customer service.
3. Any extraordinary costs of the aforesaid Transition Plan elements beyond normal
operational responsibilities will be borne solely by the District.
4. It is further agreed that it is the intention of the Town and District to accomplish
the transfer of responsibilities and assets as expeditiously as possible. Date certain
milestones for each of the Transition Plan elements will be set not later than October 1,
2004.
5. Upon completion of all Transition Plan elements and payment of all moneys
owing for transfer of ownership interests, the Town will relinquish all ownership rights
and interests in the sanitary sewer system to the District and this Agreement will be null
and void.
WITNESS THE EXECUTION HEREOF the day and year first hereinabove written.
APPROVED AS TO FORM: TOWN OF LOS GATOS
TOWN ATTORNEY
2
By:
Title:
1
DISTRICT COUNSEL
WEST VALLEY SANITATION
DISTRICT OF SANTA CLARA CO.
By:
Title:
3
1
RESOLUTION 2004 - 96
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING A CONTINUATION AGREEMENT AND AMENDMENT NO. 3 TO THE
AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY
SANITATION DISTRICT TO JUNE 30, 2005 TO ALLOW FOR THE DEVELOPMENT
AND IMPLEMENTATION OF A TRANSITION PLAN TO TRANSFER
MAINTENANCE RESPONSIBILITIES FOR THE LOS GATOS SEWER COLLECTION
SYSTEM FROM THE TOWN OF LOS GATOS TO WEST VALLEY SANITATION
DISTRICT
WHEREAS, on May 19, 1977 Town entered into an agreement with District entitled
"District 4 — Los Gatos 1977 Sewer Agreement" ( herein referred to as "Agreement" ); and
WHEREAS, on June 13, 2001 Town and District entered into an amendment to the
Agreement to continue said Agreement for a period not to exceed three years; and
WHEREAS, said Agreement and all amendments will terminate on June 30, 2004; and
WHEREAS, Town and District have analyzed current and projected costs of sewer
service and the impacts of new regulations on the future operations and management of the sanitary
sewer system; and
WHEREAS, Town and District desire to transfer all current and future ownership and
associated operation and maintenance responsibilities of the sanitary sewer system within the Town's
jurisdiction to the District.
RESOLVED, that the Town Council of the Town of Los Gatos hereby
approve the Continuation Agreement and Amendment No. 3 to Sewer Agreement
Between the Town of Los Gatos and West Valley Sanitation District, attached hereto
as Exhibit "A" and incorporated herein by this reference, and authorize the Town
Manager to execute the Agreement and Amendment.
1
I
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 21s` day of June, 2004 by the following vote:
COUNCIL MEMBERS:
AYES: Sandy Decker, Diane McNutt, Joe Pirzynski
Vice Mayor Mike Wasserman.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:/s/ Mike Wasserman
VICE MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
2
Town Council Minutes
Redevelopment Agency
June 21, 2004
Los Gatos, California
TIME
ITEM
ACTION ON ITEM
9:01
OTHER BUSINESS
OTHER BUSINESS - ITEM 22
9:02
PM
ITEM 22
WEST VALLEY
SANITATION
DISTRICT
AGREEMENT
WEST VALLEY SANITATION DISTRICT AGREEMENT
Vice Mayor Wasserman stated that this was the time and place duly
noted to consider adopting resolution approving continuation agreement
and amendment #3 to the agreement between the Town and District.
There was no one to discuss this issue nor were mere questions raised
by Council due to the complete staff report and ongoing negotiations.
ITEM 22
MOTION ON
SANITATION
DISTRICT
AGREEMENT
Resolution 2004-96
Motion by Mrs. Decker, seconded by Mr. Pirzynski, that Council
adopt Resolution 2004-96 entitled, RESOLUTION OF TOWN OF
LOS GATOS APPROVING A CONTINUATION AGREEMENT
AND AMENDMENT #3 TO THE AGREEMENT BETWEEN
THE TOWN OF LOS GATOS AND WEST VALLEY
SANITATION DISTRICT TO JUNE 30, 2005 TO ALLOW FOR
THE DEVELOPMENT AND IMPLEMENTATION OF A
TRANSITION PLAN TO TRANSFER MAINTENANCE
RESPONSIBILITIES FOR THE LOS GATOS SEWER
COLLECTION SYSTEM FROM THE TOWN OF LOS GATOS
TO WEST VALLEY SANITATION DISTRICT. Carried
unanimously. (22.40)
9:03
PM
ITEM 23
COUNCIL
MATTERS
Sandy Decker asked questions concerning conditional use permits as
they relate to formula businesses. Council Consensus was to ask that
the Manager place this issue on an upcoming agenda.
Diane McNutt complemented staff and San Jose Water for all the
efforts that have gone into making the Reservoir Road project
successful.
9:13
PM
ITEM 24
MANAGER
MATTERS
MANAGER'S MATTERS (24.28)
Debra Figone addressed the Town Hall Neighborhood Meeting to be
held at Shir Hadash on Cherry Blossom, Tuesday, June 291h at 6:45.
9:14
ADJOURNMENT
Vice Mayor Wasserman adjourned this evening's meeting at 9:14 pm.
ATTEST:
Marian V. Cosgrove
Town Clerk
Secretary to the Redevelopment Agency
N:\MASTERICOUNCIUMINUTES\21Xq\,N 06-2I-O4.wp1
11