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Item 23 Staff Report Agreement with West Valley Sanitation Districtn DATE: TO: FROM: SUBJECT: MEETING DATE: 11/4/02 ITEM NO. g COUNCIL AGENDA REPORT October 31, 2002 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGE 3 AGREEMENT WITH WEST VALLEY SANITATION DISTRICT A. AUTHORIZE TOWN MANAGER TO NEGOTIATE AND EXECUTE AN EXTENSION TO THE CURRENT AGREEMENT WITH WEST VALLEY SANITATION DISTRICT TO JUNE 30, 2004 B. COUNCIL DISCUSSION OF CONSIDERATION FOR STAFF IN EVALUATING SEWER MAINTENANCE RESPONSIBILITY UNDER THE NEW EPA REGULATIONS RECOMMENDATION: 1. Authorize Town Manager to negotiate and execute an extension to the current agreement with West Valley Sanitation District to June 30, 2004. 2. Council discussion of consideration for staff in evaluating sewer maintenance responsibility under the new EPA regulations. BACKGROUND: The Town of Los Gatos and the West Valley Sanitation District jointly agreed to re-evaluate the current arrangement between the agencies and appointed Brown and Caldwell, Consulting Engineers, to prepare a report on the current practices and cost of service. The report also speaks to future requirements which are a result of new regulations, some of which have yet to be fully defined. Sections 1 and 2 are attached for information purposes. The background, scope of the study, distribution of services by each agency, and system description is included in Section 1. Section 2 defines CMOM's and SSO'S and discusses the elements of each. PREPARED BY: Reviewed by: e5 rcdt,„C 60t/K:1 HN E. CURTIS 'rector of Parks and Public Works Assistant Town Manager j/ Attorney Clerk mance Community Development Revised: 10/31/02� 1:52 pm Reformatted: 5/30/02 N:\B&E\CNCLRPTS\public. sewer.system.agreement.wpd PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT OCTOBER 31, 2002 DISCUSSION: The Draft Report has been reviewed internally. The report raises key questions that can best be resolved by Town staff, working with West Valley and other relevant agencies. One is how to best meet the CMOM requirements and the SSO prohibitions. These questions can best be answered by setting objectives in these areas and then implementing a program to meet them. Another question raised is how to best fund the new work requirements. Are present fees enough and are there additional fees that need to be added to the present fees? Expenses for the new, not fully defined program, are difficult to assess with accuracy. A third important question is regarding the liability associated with maintaining the system. Is there liability associated with maintaining the system? Is liability avoided by having the District maintain the system or does the Town's NPDES permit bind the Town to the liability of an overflow problem? These questions cannot be so readily answered without the experience of working with the new CMOM' S and other requirements. While the Town staff can demonstrate the timely response to call - outs, it must also be able to demonstrate its record keeping capability which is a CMOM requirement. Local operational control brings the Town many advantages. The Town must know that such local control is affordable and that the potential liability is acceptable. CONCLUSION: In order to develop better real time information to answer these questions, staff is recommending that the existing contract be extended to June 30, 2004. This will enable the staffs of both Town and District to analyze their roles in meeting the new regulations and to understand more clearly the costs to do so and the liability involved. In twelve to eighteen months, staff could expect that enough data will be available to make a knowledgeable recommendation to Council as to whether the Town should continue to retain the maintenance and operational responsibilities or pass them fully to West Valley Sanitation District. FISCAL IMPACT: The cost to provide sanitary sewer service to the Town is borne by the system users by a levy on property taxes. The tax is collected by the West Valley Sanitation District and distributed back to the Town to cover its costs of providing maintenance and operation services. Cost and fee collection should always balance. Attachments: 1. Assessment and Analysis of Public Sewer System Operation and Management -Sections 1 & 2 2. Agreement with West Valley Sanitation District SECTION 1 INTRODUCTION The West Valley Sanitation District (District) and one of its member agencies, Town of Los Gatos (Town), are reevaluating the current arrangement whereby the Town performs routine maintenance of the wastewater collection system within the Town and the District provides all other collection system services. This report summarizes the current level and cost of services provided by the Town and District and identifies potential additional services and costs associated with the pending CMOM requirements. It also evaluates four alternatives for providing maintenance and other services for the collection system in Los Gatos. BACKGROUND The Town was incorporated in 1887 and began sewer service in the 1890s. In 1948, the predecessor to the District was formed to provide sewer services in Santa Clara Valley for the Town of Los Gatos, the Cities of Campbell, Monte Sereno, and Saratoga and unincorporated areas of Santa Clara County. Wastewater from the District is conveyed to the City of San Jose which conveys the wastewater to the San Jose/Santa Clara Wastewater Pollution Control Plant (SJ/SCWPCP). The District provides complete wastewater collection services to its members except for the Town. The Town and the District have a special arrangement in regards to the operation and maintenance of the collection system in Los Gatos. Los Gatos Park and Public Works staff are responsible for the routine cleaning of the collection system. The District is responsible for permitting, repairs, construction, inspection, engineering, and collection of all fees related to the sewers in Los Gatos. A portion of the fees collected by the District is used to reimburse the Town for providing routine maintenance. This arrangement between the Town and the District was agreed to in 1977 and amended in 1991. The agreement expired in 2001 and was extended for 1 year to allow the Town and the District to re-evaluate this arrangement in light of pending regulations from the US Environmental Protection Agency, known as CMOM (Capacity, Management, Operations, and Maintenance). It is anticipated that CMOM will require higher levels of collection system management, operations, and maintenance and greater accountability for preventing sanitary sewer overflows (SSOs). In January 2002, the District retained Brown and Caldwell to evaluate options for modifying the arrangement between the Town and District. The primary concerns about the arrangement are responsibilities related to potential liabilities for SSOs and potential increase in costs. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/20/02\M:\22283\Reports\22283-004\Chapter 1.doc\ms\as\ms\cd Attachment 1 1-1 SEC 'ION 1 Four alternatives are considered: 1. Town continues to perform maintenance and District continues to perform other services. 2. Town takes over all collection system functions within Los Gatos. 3. District takes over all collection system functions within Los Gatos. 4. Town takes over all collection system functions and out -sources portions of work. SCOPE OF WORK The scope of work for this project is divided into four major tasks. Task 1. Assessment of Existing Sewer System Operations. Document the existing level of service provided by the Town and District and the associated costs. Task 2. Assessment of Potential Changes in Operations. Probable impacts to the existing level of service resulting from pending CMOM regulations will be determined based on best professional judgement. The associated costs resulting from the impacts will be calculated. Task 3. Development of Alternative Service Models. Four alternatives will be developed from the results from Tasks 1 and 2. Estimate costs and impacts of each alternative will be determined. Task 4. Report Development. Document the above work in a project report. AGREEMENT BETWEEN DISTRICT AND TOWN In 1977, the District and the Town signed an agreement concerning the operation and maintenance of sewers in the Town. The agreement outlines the responsibilities of each agency, financial obligations, and rights upon termination of agreement. The agreement was amended in 1991 to its current form. Town of Los Gatos Services Under the agreement, the Town's major responsibility is to operate and maintain its sewer system. This includes (but is not limited to) cleaning, root treatment, removal of stoppages, and minor repairs. In addition, the Town oversees the planning, design, financing, construction, and inspection of private sewers, which are defined as building sewers, branches, and laterals on private property. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/20/02\NI: \22283\Reports \22283-004\Chapter 1.doc\ms\as\ms\cd 1-2 SECTION 1 West Valley Sanitary District Services The District is responsible for easement acquisition, financing, planning, design, construction, and inspection of public sewers. These include building laterals from cleanouts located on property lines to the main line, main lines, and trunk lines. The District is also responsible for administration and funding of major repair, new construction and rehabilitation work within Los Gatos. Additional duties include monitoring quantity and quality of wastewater flow from the area, CCTV inspection, and cleanout construction. Both the Town and District can identify the need for additional capacity for conveyance and treatment. Financial Obligations The District collects sewer use fees within Los Gatos from the County tax roll, and collects connection fees directly from permits. The Town submits to the District estimates for its cost of sewer operation and maintenance annually for reimbursement. A refund or additional funds are allowed to reflect actual costs at the end of the fiscal year. The District pays for transportation of Los Gatos wastewater to the SJ/SCWPCP for treatment and disposal. Termination Rights The amendments for the agreement stipulate an ultimate termination date of July 1, 2001, which has been extended one year upon mutual agreement by both parties. The agreement designates the following upon termination: • There shall be no change in composition or quantity discharged from the District system to the Town's system or from the Town's system to the District system. • The reimbursement for operation and maintenance costs of the receiving system, treatment, and conveyance will be based on usage, which is formulated by: Reimbursable cost = A * B/C Where A is total cost for service (operations and maintenance of agency's collector, treatment, or sewer capacity for non -District sewers), B is the annual average rate of the user's wastewater flow, and C is the annual average rate of all wastewater flow. The treatment formula is further modified for difficulty of treatment. • Any continued taxes collected from Town tax roll will be paid back to Town or credited. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/20/02\M;\22283\Reports\22283.004\Chapter1_doc\ms\as\ms\cd 1-3 i i i i i SEC.' ION 1 COLLECTION SYSTEM SUMMARY The Town accounts for about 25 percent of the District's total population, number of connections, and sewers and 40 percent of the District's service area. Relevant information about the District and Town are summarized in Table 1-1. Table 1-1. Comparison of District and Town Entire District District excluding Los Gatos Los Gatos Area 18,500 acres 10,800 acres 7,700 acres Population 114,800 86,200 28,600 Connections 43,600 31,300 12,300 The amount of collection system within the District and Town is summarized in Table 1-2. 6-inch pipe accounts for about three-quarters of the entire collection system footage. This size pipe is typically considered obsolete for sewer mains because of the high level of maintenance required and because it is prone to plugging. Table 1-2. Existing Sewer System, Lineal Feet Diameter Entire District District excluding Los Gatos Los Gatos 4 5,883 3,868 2,015 6 1,667,107 1,204,335 462,722 8 311,048 234,298 76,750 10 71,473 57,204 14,269 12 75,986 48,517 27,469 14 2,789 581 2,208 15 49,177 43,180 5,937 16 6,334 0 6,334 18 25,145 17,698 7,447 20 105 105 0 21 8,334 4,584 3,750 24 20,090 19,251 839 27 12,240 5,413 6,827 30 4,199 4,199 0 33 444 444 0 36 561 561 0 39 3,371 3,371 0 42 900 900 0 48 1,321 1,312 0 Total 2,266,438 1,649,821 614,602 Total Miles 429 313 116 This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/20/02\M:\22283\Reports\22283-004\Chapter 1.doc\ms\as\ms\cd 1-4 SECTION 1 Both the Town and District are responsible for lower laterals, which extend from the sewer main to the property line. Lower laterals are not included in the footage totals in Table 1-2 and are estimated at 51 miles in the Town and 181.5 miles in the rest of the District. These estimates are based on an average lower lateral length of 22 feet. Evidently, about half of the laterals do not have cleanouts at the property line. Figure 1-1 shows the age distribution of the District's sewer mains excluding those constructed in Los Gatos. About two-thirds of the sewers were constructed more than 30 years ago. Portions of the sewers in the Town are very old and it is anticipated that many sewers within the Town are more than 30 years old also. % of total main lines 40 35 30 25 20 15 10 5 0 pre-1949 1950-59 1960-69 1970-79 1980-89 1990-99 2000-01 Year constructed Figure 1-1. Construction Dates for Sewers Outside of Los Gatos Some sewer mains are located in easements instead of streets. Easement sewers are often constructed in hilly areas where the natural topography causes wastewater to flow to backyards. Easement sewers are often more prone to root intrusions and are often more difficult to maintain because of access limitations than sewers in streets. Wastewater from the District is conveyed by City of San Jose trunk sewers to the SJ/SCWPCP. While the District does not own these sewers, it contributes to the rehabilitation of the existing sewers and construction of relief sewers in proportion to its share of flow. The average wastewater flow from the entire District was 10.8 million gallons per day in fiscal year 2000/2001. This constitutes about 8 percent of the all flow to SJ/SCWPCP. The Town has four pump stations while the District does not have pump stations located outside of the Town. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/20/02\M:\22283\Reports \22283-004\Chapter 1.doc\ms\as\ms\cd 1-5 SECTION 2 CMOM CMOM (Capacity, management, operations, and maintenance) is part of pending USEPA regulations for reducing sanitary sewer overflows (SSOs) and improving the long-term management of wastewater collection systems. These regulations will apply to the District and Town and may require changes to current practices. This section presents the major features of CMOM and the types of practices that will be needed to comply with CMOM regulations. These practices are compared to current District and Town practices in Sections 3 and 4, respectively and the identified changes in practices are included in the development and evaluation of alternatives in Section 5. SSO POLICY CMOM is part of the pending USEPA SSO Policy. The goal of the SSO Policy is to reduce the estimated 40,000 SSOs that occur annually nationwide and to address the general deterioration of sanitary sewer systems. Development of the draft SSO Policy began in 1995. A preliminary draft of the policy was released by USEPA in early 2001. Recent announcements by USEPA indicate that the draft policy will be published in the Federal Register in 2002 and the policy will become final in 2003. The SSO Policy has four parts and a preamble. The preamble indicates that even the best managed collection systems have unforeseeable SSOs. While this is consistent with the experience of the collection system industry, it may conflict with the Clean Water Act, which strictly forbids all SSOs. The four parts of the SSO Policy are: NPDES Permitting. Historically, the National Pollution Discharge Elimination System (NPDES) permit process has primarily been used to permit wastewater treatment plants and storm drain systems. The SSO Policy expands NPDES permits to include satellite collection systems such as the District. (Satellite collection systems convey wastewater to a regional wastewater treatment plant such as San Jose/Santa Clara Water Pollution Control Plant. CMOM Programs. Each collection system agency must have a written CMOM program. The requirements of the program are discussed below. SSO Prohibition. All SSOs are prohibited; however, enforcement actions may be tempered if the collection system agency can demonstrate that the SSO resulted from a severe natural condition (e.g. hurricane, earthquake) or that the agency had exercised reasonable control of the collection system (i.e., proper management, operation, and maintenance). This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21 /02\M:\2283\Reports\2283-004\Chapter 2.doc\ms\cd\ms 2-1 SECTION 2 Reporting. The definition of a reportable SSO changes to any overflow regardless of size or if the overflowing wastewater reached a receiving water (e.g. bay). The new SSO definition includes I wastewater backups in buildings that are caused by blockages or other conditions in the collection system. All SSOs must be included in an annual report. ISTATE ACTIONS The State of California by itself and in conjunction with USEPA Region 9 has recently undertaken several enforcement actions against collection system agencies because of SSOs. Most of these ' actions have been in Southern California although agencies in other areas have been sited also. The State is currently developing its own CMOM program, which is modeled on the draft SSO Policy. The State believes it already has the authority to require collection systems to comply with its CMOM program and may proceed with its own implementation regardless of the USEPA. CMOM ICMOM has two basic goals. The first goal is to reduce the number of SSOs. The second goal is to ensure the long-term management of collection system assets to prevent future SSOs. Many I wastewater collection systems have too many SSOs and/or stoppages, which threaten public health and contribute to a low level of service to their customers. Also, many collection systems are approaching the end of their useful lives and need major repairs, rehabilitation and/or replacement. 1 CMOM has eight basic elements: • Goals • Organization • Legal Authority • Measure and Activities • Design and Performance Provisions 1 • Monitoring, Measurement, and Program Modifications fl • Overflow Emergency Response Plan • System Evaluation and Capacity Assure In addition, an audit of the actual performance of the collection system and implementation of the CMOM program is required when the NPDES permit is renewed. The results of the audit and the program provisions must be publicly disclosed. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21/02\NI: \22283\Reports \22.83-004\Chapter 2.doc\ms\cd\ms 2-2 SECTION 2 CMOM is based on the Management, Operations, and Maintenance (MOM) program developed by USEPA Region 4. Region 4 also developed several guidance documents to assist agencies in complying with MOM requirements. The CMOM regulations, MOM guidance documents, and other related information were reviewed to identify key components that may have significant financial impact on the current operations by the District and Town. The impacts and related costs will be included in the development and evaluation of alternatives in Section 5. The key components of a complete CMOM program are grouped into four categories: Performance, Administration, Operations and Maintenance, and Engineering. These categories are summarized in Table 2-1. The key components focus on the two basic goals of CMOM: SSO reduction and asset management. Table 2-1. CMOM Summary CMOM Component Administration Performance - Customer service - Finance - Public Outreach - Information Management - General Administration - Legal Authority Operations and Maintenance - Standard Operating Procedures - Overflow Response Plan - Maintenance Preventive Maintenance Complaint Response Other fieldwork - Repairs - Other Maintenance Engineering - Asset Management - Capacity Assurance - Design and Construction - Capital Improvement Program Discussion Connection permits; customer complaints; customer billing; fees for connections; other services Operating budget; capital budget; long-term finance; budget tracking Public education about ordinances and other requirements of property owners Work orders; hours/costs; repairs; SSOs; stoppages; complaints; GIS; manhole numbers, USA response Management, human resources, accounting, human resources, clerical Ordinances, satellite agreements, design and construction standards Written procedures Responsibilities/authority, emergency contacts, notifications Cyclic cleaning of mains and laterals; focused cleaning of troublesome mains and laterals Response to SSOs, complaints or other problems; response to pump station problems; problem investigation Easement maintenance; locating laterals, dye testing, other inspections Repairs and upgrades of pipes and pump stations; construct cleanouts CCTV inspections; field support of construction projects; inspection of new facilities System inventory; condition assessment; I/I control Design storm, hydraulic modeling Design standards; inspection and testing; develop plan review Rehabilitation; relief sewers; expansion This is a draft and is not intended to be a final representation of the work done or recommendations made by Broom and Caldwell. It should not be relied upon; consult the final report. 5/21/02\M \22283\Reports\22283-oo4\chapter 2.doc\tns\cd\ms 2-3 SECTION 2 CMOM checklists also include other items that are typically less important to the overall reduction of SSOs and improved management of collection systems. It is anticipated that these other items would also have less impact on the cost of service provided by the Town and District. PERFORMANCE The key indicators of collection system performance are stoppages and SSOs. As discussed above, CMOM expands the definition of an SSO to include any wastewater that overflows from a collection system regardless of quantity and whether it reaches a receiving water. Most collection system agencies have not tracked SSO data using this new definition so the overall performance of the collection system is difficult to evaluate from only SSO data. Therefore, stoppages will be considered along with SSOs in determining performance. Stoppages differ from SSOs in that maintenance crews were able to eliminate the blockage before wastewater could overflow from the collection system. While stoppages are officially different from SSOs, they indicate significant problems in the collection system. CMOM does not identify an acceptable rate of stoppages or SSOs from a collection system. However, regulatory agencies have typically considered the following items when determining the appropriate enforcement actions to take when an SSO occurs: • Quantity: Large volume SSOs pose a larger threat to public health and the environment and receive more regulatory attention than smaller volume SSOs. Large volume SSOs often occur during large storms and when large diameter pipes are blocked. • Repeat overflows: Each SSOs should be investigated and appropriate remedial action taken to prevent a repeat occurrence. Multiple SSOs at the same location are often indicators of inadequate collection system management. • Delayed action: Agencies should promptly implement sewer rehabilitation, new relief sewers, additional maintenance, grease control programs to prevent SSOs. • Economic benefit: Agencies that delay implementing corrective actions because of cost are particularly at risk of enforcement action. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell It should not be relied upon; consult the final report. 5/21/02\M:\2283\Reports \22283-004\Chapter 2.doc\ms\cd\ms 2-4 SECTION 2 ORGANIZATION A basic understanding of the organization of the agency is needed for a CMOM evaluation. Some organization issues such as inadequate training can affect the frequency of stoppages/SSOs. CMOM will require documentation of the organization, including clear delineation of responsibilities for each organizational unit, relation to other organizations, staff assignments and job descriptions. Specific information required includes: 1. Overall organizational chart, including governing body. This is to be a detailed organizational chart by work area/function. 2. Relationship to other work units (e.g. storm water maintenance). 3. Number of positions budgeted and number filled. 4. Training policies. 5. Safety policy, committee, and training program. ADMINISTRATION Administration includes most practices that are not part of operations and maintenance or engineering. This section includes a description of what is included in customer service, finance, public outreach, information management system, and legal authority. Customer Service Customer service deals with the interaction between the agency and its customers in the areas listed below. • Connection permitting process • Service complaints and problem reporting • Billing system This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21/02\M:\22283\Reports \22283-004\Chapter 2.doc\ms\cd\ms 2-5 SECTION 2 Finance The utility must demonstrate that it has the proper financial means and controls to care for its collection system. • Operations budgeting system based on actual needs • System of rates and fees that provide sufficient funds for operating and capital budgets • Budget tracking system that determines actual operations and capital costs • Analysis of long-term financial resources to operate, maintain and execute repairs, rehabilitation, or replacements Public Outreach Public outreach is integral to the success of several programs and includes the following items. • Notification of public when SSOs occur • Grease control program • Private inflow/infiltration reduction • General public education about CMOM and collection system performance and level of service This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21/02\M:\22283\Reports\22283-004\Chapter 2.doc\ms\cd\ms 2-6 SECTION 2 Information Management CMOM will require increased record keeping, maps and data management as part of more effective collection system management, maintenance and operations. The agency should mark the locations of its facilities in the field as part of the Underground Survey Alert (USA) system. The information management system needs to handle various types of information as listed below. • Historical performance data that is tracked, trended, and available for reports • Prioritize and schedule preventive maintenance • Repair, replace and rehabilitation strategies for the collection system • Financial information • Collection System Maps (e.g. GIS) • Spare parts inventory of essential spare parts for maintenance equipment and system components Legal Authority CMOM requires agencies to have the legal authority to properly manage the collection systems regarding the following items. • Sewer ordinances: regulate connection to the collection system and discharge of wastewater; control I/I from private property; and grease control program for food processing establishments • Design and construction specifications and standards based on sound engineering and construction practices • Construction inspection and testing by qualified inspectors • Satellite collection system agreements with downstream or upstream satellite systems or treatment facilities This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21 /02\ M:\2228 3 \ Reports \22283-004\Chapter 2.doc\ms \cd\ms 2-7 SECTION 2 OPERATIONS AND MAINTENANCE Operations and maintenance is the primary program for preventing SSOs and mitigating the impact of SSOs that occur. Standard Operating Procedures Written standard operating procedures for the items below should be used by operations and maintenance staff. • Sewer maintenance • Pump station maintenance • Repairs • Information collection for the information management system. Overflow Response Plan A written Overflow Response Plan should specify procedures related to responding, mitigating, reporting, notifying, and tracking overflows. The plan should designate specific responsibilities for each of these actions throughout the organization. Maintenance Maintenance includes a variety of field activities. Preventive maintenance includes cyclic and focused cleaning of the collection system and related activities at pump stations. The intent of preventive maintenance is to minimize the number and severity of stoppages/SSOs. Typical sewer maintenance programs include cleaning sewer mains on a 5-year cycle. Specific mains that have root, grease, or sediment problems should receive focused cleaning more frequency. Agencies that are responsible for maintaining lower laterals should have a preventive maintenance program for them also. Complaint response includes quickly responding to notification of a stoppage or SSO, correcting the problem, and performing the appropriate notifications and information tracking. It also includes investigating the cause of each stoppage and SSO and ensuring corrective action is taken to prevent the problem from occurring again. Complaint response applies to mains, laterals, and pump stations. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/21 /02\M:\22283\Reports\22283-004\Chapter 2.doc\ms\cd\ms 2-8 SECTION 2 Other fieldwork includes easement maintenance so that sewers are accessible and various field activities such as locating laterals and miscellaneous inspections in support of customer service, capital projects, and determining causes of problems. Repair Repairs are performed to correct problems and maintain collection system operations. Repairs are typically identified either by maintenance crews or through CCTV inspection. Customers request other repairs such as cleanout construction. For most repairs, the agency needs to follow documented procedures that include: • Problem identification • Needs assessment to determine if repair, rehabilitation, replacement, or additional preventive maintenance is most appropriate • Prioritization of repairs along with other field crew activities • Scheduling of repair work • Tracking of all related information in the maintenance management system • Adjustment of preventive maintenance or other activities to account for the repair Other Maintenance Other maintenance includes CCTV inspections. CCTV inspection is the primary procedure for evaluating the condition of sewer mains and laterals and includes the following. • Cyclic inspection of sewers mains about every 10-years • Investigation of stoppages/SSOs or other problems • Acceptance inspection of new sewers and laterals ENGINEERING Engineering needs to work closely with O&M to reduce stoppages/SSOs and provide asset management. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell It should not be relied upon; consult the final report. 5/21 /t12\M:\22283\Reports\22283-O04\Chapter 2.doc\ms\cd\ms 2-9 SECTION 2 Asset Management Asset management is a set of practices and policies to ensure the long-term viability of the collection system. Asset management includes asset inventory and asset condition assessment. Asset inventory is typically included with mapping, particularly if GIS mapping is used. Condition assessment includes a complete evaluation of each asset from a perspective of: • Structural condition • Hydraulic condition • Maintenance condition Structural condition is usually based on sewer system evaluation surveys (SSES) and CCTV inspections. Hydraulic condition information is derived from hydraulic modeling and maintenance condition information is related to prevention maintenance, repairs, and stoppages/SSOs. This information is used to track the condition of each asset and provide the needed repairs, rehabilitation, replacement, or additional maintenance as needed to prevent stoppages/SSOs. Management of field data and assessments is an important component of the information management system. Capacity Assurance Capacity assurance is the process to determine that the collection system has adequate capacity for new connections and to identify hydraulic bottlenecks and areas with excessive I/I that cause wet weather related SSOs. Capacity assurance is typically performed with a hydraulic model of the collection system. Wet weather flow monitoring is important to calibrate the model and flow projections. Wet weather flow projections should be based on a design storm or flow recurrence frequency. Design and Construction Standards In order to ensure high quality construction of system components, design and construction specifications should be based on sound engineering and construction practices. In addition, the agency should perform inspection of all sewer projects by qualified inspectors. Capital Improvement Program Capital improvement projects should be developed based on the capacity assurance hydraulic modeling, asset management, and other programs. The capital improvement projects should be prioritized and scheduled and funding sources should be identified. This is a draft and is not intended to be a final representation of the work done or recommendations made by Brown and Caldwell. It should not be relied upon; consult the final report. 5/2 /02\M:\22283\Reports \22283-004\Chapter 2.doc\ms\cd\ms 2-10 a3 C.7- ACE OF THE TOWN CLERK AGR 4/.07411 CONTINUATION AGREEMENT AND AMENDMENT' NO. 2 TO SEWER AGREEMENT BETWEEN THE TOWN OWE OS OATOS AND WEST VALLEY SANITATION DISTI410f REC RESO add / '"-10 5 THIS CONTINUATION AGREEMENT is made and entered into this /eft, . day of , 2001 by and between the Town of Los Gatos ( hereinafter "Town") and W t 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 December 4, 1991 Town and District entered into an Amendment to the Agreement to facilitate certain changes in procedures and technology ( herein referred to as "original Amendment" ); and WHEREAS, said Agreement and original Amendment will terminate on June 30, 2001; and WHEREAS, pursuant to the Federal Clean Water Act, the United States Environmental Protection Agency is in the process of promulgating new regulations for the operation of public sanitary sewer systems; and WHEREAS, Town and District intend to analyze current and projected costs of sewer service and determine how best to provide Town sewer users with the most cost-effective service after said regulations are in effect; and WHEREAS, Town and District desire to indemnify each other for acts of either party under the Agreement, as amended, until such time as a new agreement is developed or the current agreement terminated; 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: Part II, Section E, add Paragraph 4 as follows: 4. Indemnification. Neither TOWN nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by DISTRICT under or in connection with any work, authority or jurisdiction delegated to DISTRICT under this Agreement. It is also understood and agreed that, pursuant to Government Code Section 895.4, DISTRICT shall defend, indemnify and hold TOWN harmless from any Attachment. i liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by DISTRICT under this Agreement Neither DISTRICT nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by TOWN under or in connection with any work, authority or jurisdiction delegated to TOWN under this Agreement. It is also understood and agreed that, pursuant to Government Code Section 895.4, TOWN shall defend, indemnify and hold DISTRICT harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by TOWN under this Agreement. Part IX, Section A, Term of Agreement is amended to read: This amended agreement is in effect from June 1, 2001 through June 30, 2002, and is automatically renewed for an additional two year period unless either party gives written notice to the other by January 1, 2002 that it does not wish to renew this amended agreement. This agreement can also be terminated at any time by written agreement of both parties or by operation of law. If not otherwise terminated, this agreement shall terminate on July 1, 2004. All of the terms and provisions of the Agreement and original Amendment, except those specifically amended herein, remain in full force and effect. WITNESS THE EXECUTION HEREOF the day and year first hereinabove written. APPROVED AS TO FORM: ATTEST: TOWN CLERK /j DISTRICT COUNSEL 2 TOWN OF LOS GATOS Title: TOWN MANAGER WEST VALLEY SANITATION DISTRICT OF SANTA CLARA CO. By: Z-a2 Title: Chairperson of the Board of Directors 11/6/91 AMENDMENT NO. 1 TO 1977 SEWER AGREEMENT BETWEEN THE WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS TOWN CLERK AGR• 9/, /c%U IHi. RE- / (",ti/- a 66 is Amendment to Agreement is made and entered into this .4 >iX day of .a_C Z - ) , 1991 by and between the West Valley Sanitation District (formerly County Sanitation District No. 4, (hereinafter "District") and the Town of Los Gatos (hereinafter "Town"). RECITALS WHEREAS, On May 19, 1977, the Town entered into an agreement with the District entitled "District 4 - Los Gatos, 1977 Sewer Agreement" (herein referred to as "Agreement"). WHEREAS, certain changes have occurred in procedures regarding the Town sewer system operation, funding of sewer extensions and replacement, and staffing at each agency; WHEREAS, District and Town desire to provide improved services at less cost by using current technology and eliminating redundancy; 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: Section 1 PART I, Section A, Paragraph 5 is amended to read: (a) Building Sewer -- The conduit from a plumbing system to a public sewer, consisting of two parts: (1) a portion within a public sewer easement or right-of-way; (2) a portion on private property. (b) Branch -- A sewer which receives wastewater from two (2) to one hundred (100) laterals and discharges into a main sewer. (c) Interceptor -- A sewer which receives wastewater from two or more trunk sewers and conducts it to a treatment plant. (d) Lateral -- A sewer which discharges wastewater from a building sewer into a branch or main sewer and which has no other building sewer and which has no other building sewer tributary to it. (e) Main -- A sewer which receives wastewater from two or more branches and from laterals. Revised 11/7/91 1 (f) q Trunk -- A sewer which receives discharge from two or more mains. (g) Public Sewer -- The portions of a building sewer within a public sewer easement or right of way, branches, interceptors, laterals, mains and trunks. (h) P'.u.nbing Systems -- The plumbing system is fixtures and traps, all drainage and vent pipes and all building drains. Section 2 PART I, Section A, add Paragraphs 15, 16 and 17 as follows: 15. Hillside Zone - Hillside Sewer Maintenance Zone refers to all that territory situated within the Hillside Zone area of the district as shown and delineated with a report entitled "Establishment of a Hillside Sewer Maintenance Zone within the West Valley Sanitation District," dated April 4, 1990, which is kept at the district office and is signed by the District Manager and Engineer. Hillside Zone Reserve Account Fee is the fee which is paid by all connectors within the Hillside Zone (as defined above) to pay for sewer repairs necessitated by land movement or erosion. 16. Septic System Abandonment Program - The Septic System Abandonment Program refers to a construction and financing program of West Valley Sanitation District to provide sanitary sewers to neighborhoods served by septic systems. 17. Town Director of Public Works - Where reference is made in the Agreement to Town Director of Public Works, replace by Town Manager or designee. Section 3 PART II, Section B, Paragraphs 1, 2 and 3 are amended to read: 1. Building Sewers on Private Property and Public Sewers - Matters of design and construction of building sewers on private, property are subject only to control by the Town, but such sewers must be designed and built to reduce the entrance of storm water and ground water to a minimum. Matters of design and construction of public sewers, are subject to control by the District. 2. Public Sewers - Matters of design and construction of public sewers are subject only to control by the District. Town requests for public sewers construction must be made to the District at least one year before the public sewer is needed. It is the obligation of the District to build the public sewer necessary to convey wastewater which may, under the terms of this agreement, be discharged into the Town's System. Revised 11/7/91 2 014 Af% that it does not wish to renew this amended agreement. This agreement can also be terminated at any time by written agreement of the parties or by operation of law. If not otherwise terminated, this agreement shall terminate on July 1, 2001. Section 9 All of the terms and provisions of the original Agreement, except those specifically amended herein, remain in full force and effect. WITNESS THE EXECUTION HEREOF the day and year first hereinabove written. APPROVED AS TO FORM: KAT RINE ANDERTON Town ttorney ATTEST: MARIAN V. COSGROVE,()INN CCERK APPROVED AS TO FORM: " -YiDISTRI'CT COUNSEL ,' / pfm007:•;\contr.ct\amSndtlg.d0C Revised 11/7/91 5 TO OF LOS GATOS B LtJ %\ F TOWN MANAGER 17 Town of Los Gatos P.O. Box 949 Los Gatos, CA 95031 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA CO. By: bi,u.e.0„, Title: Chairperson of the Board of Directors 100 East Sunnyoaks Avenue Campbell, CA 95008 Telephone (408) 378-2407 • 3. Cost of Performance - The District shall perform the District's obligations under Part II E at its own expense. The Town shall perform the Town's obligation at its own expense. Section 6 PART III, Section A, Paragraph 2 is amended to read: 2. Notice to District - Applicant must secure a permit from the District to connect to the public sewer. Proof of a District permit shall be a condition of the Town's approval of the portion of the building sewer on private property. PART III, Section B, Paragraphs 2 and 3 are amended to read: 2. Construction Work - When additional public sewers either in the Town or leading from the Town to the treatment and disposal facility are necessary to serve the Town or when it is apparent that such public sewers will become necessary in the reasonably near future, the District will design and construct them and will pay the cost of doing so. Both design and construction of public sewers in the Town and the manner of making Town requests for construction are governed by Part II B 2 of this agreement. 3. Limitation on Construction Obligation - The District is not obligated to do construction work under the provisions of any part of this agreement unless it can obtain money to pay the capital cost by reasonable tax levy, sewer service charges, formation of an assessment district, governmental grants, or issuance of general obligation or revenue bonds. Section 7 PART III, Section C. Paragraph 1 is amended to read: 1. Operation of Sewer System - The District shall operate and maintain its entire system except that portion of its system which is within the Town. The District shall administer and fund sewer repair and reconstruction projects on it system with the Town. The Town shall operate and maintain the portion of the District system which is within the Town under the operation and maintenance management program provided by the District or other program developed by the Town and approved by the District (refer to Part II, Section D). Section 8 PART IX, Section A, Term of Agreement is amended to read: This amended agreement is in effect from January 1, 1992 through June 30, 1997, and is automatically renewed for an additional four-year period unless either party by January 1, 1997 gives written notice to the other Revised 11/7/91 4 3. Cost of Construction - As between the Town and the District, the District will construct and pay the capital cost of constructing public sewers. The funding sources for this construction will be from the formation of assessment districts, the hillside zone program, septic system abandonment program, developer contribution, district participation program or other similar financing programs established by the District. Section 4 PART II, Section D, is amended to read: Section D. Operation and Maintenance of Town's Sewer System. The Town shall operate and maintain the Town's System under an operation and maintenance management program provided by the District or other program developed by the Town and approved by the District. The District shall reimburse the Town all of the Town's cost of doing so. Requests for payments shall be made in the manner provided in Part III C.3. The Town's operation and maintenance responsibilities shall include but not be limited to sewer cleaning, root treatment, removal of stoppages, and performance of minor repairs. The district shall administer and fund repair and reconstruction projects within the Town. Section 5 PART II, Section E, Paragraphs 1, 2 and 3 are amended to read: Section E. Administration of Town's Sewer System 1. Town Obligations - With reference to building sewers on private property the Town shall approve designs, issue permits, collect fees, and inspect installations pursuant to the uniform plumbing code. 2. District Obligations - With reference to the Town's sewer system, the District shall: (a) Plan, design and approve designs of public sewers. The district shall incorporate the comments of the Town maintenance department in its approval and design process. (b) Acquire interests in land. (c) Construct and inspect, issue permits for construction and connection, and collect fees prescribed by the District. (d) Measure the rate of flow, quantity and content of wastewater as necessary for monitoring compliance of the Town and the District with the provisions of this agreement. Revised 11/7/91 3 TABLE OF CONTENTS PART SECTION PAGE GENERAL PROVISIONS 1 A DEFINITIONS 1 1. Town Sewer System 1 2. District Sewer System 1 3. District Area 1 4. Wastewater 1 5. Sewer 1 6. Cost 2 7. Capital Cost 2 8. Operation and Maintenance Cost 2 9. Administrative Cost 3 10. Transportation Cost 3 11. Treatment and Disposal Cost 3 12. Fiscal Year 3 13. Prohibited Substance 3 14. Constructed By, Construct 4 I B REFERENCES TO BOUNDARIES OR AREAS 4 I C 1958 AGREEMENT TERMINATED 4 II TOWN SEWER SYSTEM 4 II A USE OF THE TOWN'S SYSTEM 4 1. Discharges into Town System 4 2. Winery Property 5 L. Increase in Discharge 5 4. Determination of Capacity 5 TABLE OF CONTENTS PART SECTION PAGE II A 5. Notification 5 6. Prohibited Substances 5 II B SEWER CONSTRUCTION IN THE TOWN 6 1. Building Sewers, Branches and Laterals 6 2. Mains and Trunks 6 3. Cost of Construction 6 II C PAYMENT FOR RIGHT TO USE EXISTING SEWERS 6 II D OPERATION AND MAINTENANCE OF TOWN'S SEWER SYSTEM 7 II E ADMINISTRATION OF TOWN'S SEWER SYSTEM 7 1. Town Obligations 7 2. District Obligations 7 3. Cost of Performance III DISTRICT SEWER SYSTEM 8 USE OF THE DISTRICT SYSTEM 8 1. Extent of Use 8 2. Notice to the District 8 3. Restriction on Use of District's System 8 III B CONSTRUCTION IN DISTRICT'S SYSTEM 9 Building Sewers, Branches, Laterals, Mains and Trunks 2. Construction Work 3. Limitation on Construction Obligation 9 9 9 III C OPERATION AND MAINTENANCE OF DISTRICT SEWERS 10 TABLE OF CONTENTS PART SECTION PAGE III C 1. Operation of Sewer System 10 2. Cost of Operation 10 3. Manner of Payment 10 IV TRANSPORTATION OF WASTEWATER TO TREATMENT PLANT 11 IV A METHOD OF TRANSPORTATION 11 IV E USE OF TRUNK AND INTERCEPTOR CAPACITY RESERVED FOR DISTRICT 11 IV 0 ACQUISITION OF ADDITIONAL CAPACITY 11 ✓ TREATMENT AND DISPOSAL OF WASTEWATER 11 ✓ DISTRICT RESPONSIBILITY, AND CONTRACTS 12 ✓ _ USE OF CAPACITY RESERVED FOR DISTRICT 12 ✓ C ACQUISITION OF ADDITIONAL CAPACITY 12 VI INTEREST OF TOWN IN DISTRICT ASSETS 13 VI A INTERESTS IN ASSETS 13 VI � ADJUSTMENT OF COST BURDEN OF ACQUISITION OF ASSETS 13 VI I DISTRICT FEES AND CHARGES ON TOWN 13 VIII FINANCIAL ARRANGEMENTS FOR FISCAL YEAR 1976-77 14 VIII SEWER SERVICE AND USE CHARGES 14 1. Charces within the Town 14 2. Manner and Time of Collection 14 3. Disposition of Collections 14 VIII _ PAYMENTS DUE TOWN AND DISTRICT FOR SERVICES PROVIDED DURING FISCAL YEAR 1976-77 14 1. Payments by Town to District 14 TABLE OF CONTENTS PART SECTION PAGE VIII B 2. Payments by District to Town 14 3. Time of Payments 14 IX TERM OF AGREEMENT, RIGHTS AFTER TERMINATION 15 IX A TERM OF AGREEMENT 15 IX B RIGHTS AFTER TERMINATION 15 1. Use of Town and District Systems 15 2. Payment for Sewer Use 15 3. Payment for Sewer Capacity Use 16 4. Payment for Wastewater Treatment 16 5. Fiscal Year Basis 17 6. Offset for Taxes and Charges 17 X MISCELLANEOUS PROVISIONS 17 X A AMENDMENTS 17 X B DISPUTES 17 X C DELAYED PAYMENTS 18 X D SUCCESSORS AND ASSIGNS 18 EXHIBIT "A" DISTRICT 4 - LOS GATOS 1977 SEWER AGREEMENT PART I. GENERAL PROVISIONS Section A Definitions For the purposes of this agreement the following definitions apply. 1. Town Sewer System - Public sewers constructed by the Town. 2. District Sewer System - Public sewers constructed by the District, including sewers in the Town. 3. District Area - The entire territory of the District, including that part which, at any time under consideration, is in the Town. 4. Wastewater - Liquid and water -borne waste of the sort sewers are designed to transport, including groundwater and stormwater which, notwithstanding reasonable precautions, enters the sewer. 5. Sewer - Sanitary sewer (as distinguished from storm sewer) including conduit, manholes, vertical risers, cleanouts, and other appurtenances. (a) Buildino Sewer - The conduit from a plumbing system to a public sewer. (b) Branch - A sewer which receives wastewater from a relatively small area and discharges into a main sewer. (c) Interceptor - A sewer which receives wastewater from transverse sewer outlets and conducts it to a treatment plant. (d) Lateral - A sewer which discharges into a branch or other sewer and which has no other common sewer tributary to it. (e) Main - A sewer which receives the discharge from several branches. (f) Trunk - A sewer which receives the discharge from several mains and serves a large area. 6. Cost - The amount reasonably expended in performing a particular act or operation. When categories of cost are mentioned, reference to generally accepted accounting methods uniformly applied by the party claiming the cost is intended. 7. Capital Cost - The cost, except as included in Part I A 8(a), of interests in land, buildings and capital equipment for a sewer system, of the sort ordinarily recognized as a capital item, including directly -related engineering and incidental costs, and also the cost of modernizing the capital portions of a sewer system, such as replacement or addition of metering, monitoring or treanent devices and facilities. 8. Operation and Maintenance Cost - The cost of operation, maintenance, repair and reconstruction of a sewer system, or part of a sewer system, including, (a) Items ordinarily recognized as capital items (for example, interests in land), when reasonably necessary to maintain the capacity the system had when new, (b) Replacement of portions of a system damaged or destroyed as a result of accident or natural disaster, (c) Damages and settlements oaid in the course of, or because of threatened, legal actions, except (1) actions between the parties to this agreement, (2) payments which are reimbursed from insurance or other sources, (3) payments concerning condemnatic -2- or inverse condemnation of a capital item, and (d) Liability insurance premiums. 9. Administrative Cost - When related to sewer construction, the cost of planning, design, design approval, inspection and legal work, and the cost of the preparation, letting, and administration of contracts, the cost of issuing permits and collecting fees, and in addition, all cost of monitoring wastewater flow. 10. Transportation Cost - The District's share of the capital cost and operation and maintenance cost of its mains, trunks and interceptors or mains, trunks and interceptors constructed or owned jointly by the District and the City of San Jose, or constructed by the City of San Jose for the purpose of conveying wastewater from the District System as set forth in the April 1, 1965 SEWER AGREEMENT BETWEEN CITY OF SAN JOSE AND COUNTY SANITATION DISTRICT NO. 4 or any functionally similar agreement. 11. Treatment and Disposal Cost - The cost of treating and disposing of wastewater from the District's System, including the District's share of the capital cost and operating cost of treatment and disposal facilities constructed or owned by the cities of San Jose and Santa Clara, as set forth in the April 1, 1965 agreement entitled AGREEMENT 3ETWEEN CITIES OF SAN JOSE AND SANTA CLARA AND COUNTY SANITATION DISTRICT NO. 4 RELATING TO SEWAGE TREATMENT PLANT or anv functionally similar agreement. 12. Fiscal Year - The period from July 1 through June 30 of the following year. 13. Prohibited Substance - Anything which users of the District System are prohibited by law (including statute, ordinance or - 3- regulation) or by contract of the District from discharging into the District's System. 14. Constructed By, Construct - Sewers constructed at the request of a public agency and dedicated to public use (for example, sewers which are subdivision improvements) are included in the definition of sewers "constructed by" the agency which owns them, and their construction is fulfillment of that agency's obligation to "construct" them. Section B References to Boundaries or Areas When the boundaries or territory of the Town or the District are referred to, the reference means the boundaries or territory as they exist at the time in question, and not necessarily those which exist at the time this agreement is signed, unless a different intention is stated in this agreement. Section C 195E Agreement Terminated The December 1, 1958 agreement between Town of Los Gatos and County Sanitation District No. 4 of Santa Clara County, California is deemed terminated effective July 1, 1976. However, payments due the District for services provided under the terms of the agreement through June 30, 1976 shall be made by the Town. PART II. TOWN SEWER SYSTEM Section A Use of the Town's System 1. Discharges into Town System - At the time this agreement is executed the Town and the District are discharging wastewater into, and conducting it through the Town Sewer System. Throughout the term of this agreement the Town and the District each have the right to continue to discharge substantially 'the same amount of wastewater -4- from the same areas into, and to conduct it through the Town System. 2. Winery Property - For the purposes of this agreement, the land shown on the map attached hereto marked Exhibit A is treated as if it were within both the Town and the District. It is called the Winery Property. It shall be so treated only until it is subdivided, or until there is a substantial change in the manner in which it is used. "Subdivided" means any land division. 3. Increase in Discharce - The Town and the District each has the right to increase the amount of wastewater discharged into the Town System on a first come - first served basis so long as the Town System and the portion of the District System to which it is tributary, including treatment facilities and rights to use treatment facilities, have the capacity to receive additional wastewater. The Town and the District each has the right to maintain its discharge of wastewater at the increased level. 4. Determination of Capacity - The Town Director of Public Works and District Engineer together shall determine if there is sufficient capacity to allow increases in the amount of wastewater discharged into the Town System. 5. Notification - At least 30 days before the District makes or allows an increase in wastewater discharged into the Town System it shall notify the Town, in reasonable detail, in writing. The District shall not make or allow the increase until written approval is riven by the Town Director of Public Works. Approval shall be denied only on the grounds of lack of the capacity described in Part II A 3, determined as provided in Part II A 4. 6. Prohibited Substances - Neither the Town nor the District shall discharge a prohibited substance into the Town System, and both shall take reasonable measures to prohibjt such discharge by any user of the System. Section B Sewer Construction in the Town The following agreements concern construction work in the Town: 1. Building Sewers, Branches and Laterals - Matters of design and construction of building sewers, branches and laterals are subject only to control by the Town, but such sewers must be designed and built to reduce the entrance of storm water and ground water tc a minimum. The Town must give the District at least 30 days' notice before approving the design of a branch or lateral, and must consider any District recommendation made before the approval. 2. Mains and Trunks - Matters of design and construction of mains and trunks are subject only to control 'hy the District. Town reauests for main or trunk construction must be made to the District at least one year before the main or trunk is needed. It is the obligation of the District tc build the mains and trunks necessary to convey wastewater which may, under the terms of this agreement, he discharged into the Town's System. 3. Cost of Construction - As between the Town and the District, the Town will construct and pay the capital cost of constructing building sewers, branches and laterals, and the District will construct and pay the capital cost of constructing mains and trunks. Section C Payment for Right to Use Existi ne Sewers By July 1, 1977 the District shall pay the Town $36,506.00 for the right to connect sewers to and discharge wastewater into -6- Eph those Town sewers which existed before December 1, 1958 and are located within the July 1, 1950 Town boundaries. Section D Operation and Maintenance of Town's Sewer System The Town shall operate and maintain the Town's System and the District shall reimburse the Town all of the Town's cost of doing so. Requests for payment and payments shall be made in the manner provided in Part III C 3. Section E Administration of Town's Sewer System 1. Tom Obligations - With reference to building sewers, branches and laterals in the Town's System, the Town shall: (a) Plan, design and approve designs, (b) Conduct or recuest that the District conduct, assessment district proceedings, (c) Acquire interests in land, and (d) Contract and inspect, issue permits for construction and connection, and collect the fees prescribed by the Town and the District. 2. District Obliaaticns - With reference to the Town's sewer system, the District shall: (a) Plan, design and approve designs of mains and trunks, (b) At the Town's recuest, conduct assessment district Proceedings to construct building sewers, branches and laterals, (c) Review the planning and design of building sewers, branches and laterals for compatibility with the District's plan for its system, and (d) Measure the rate of flow, quantity and content of wastewater as necessary for monitoring compliance of the Town -7- and the District with the provisions of this agreement. 3. Cost of Performance - The District shall perform the District's obligations under Part II E at its own expense, and shall reimburse the Town for all of the Town's administrative cost of performing its obligations under Part II E, less amounts which are chargeable by the Town to applicants for and recipients of sewer service, and which are retained by the Town. Requests for payment and payments shall be made in the manner provided in Part III C 3. PART III. DISTRICT SEWER SYSTEM Section A Use of the District System; 1. Extent of Use - The Town and the District each have the continuing right to discharge 'the cuantitvr Of wastewater specified i in Parts II A 1 and II A 3 via -The Town's System, into the District's System. The District has the obligation to receive, treat and dispose of such wastewater. The District has the ri=ht to increase the amount cf wastewater discharged into its system from areas not in the Town cr via sewers other than the Town's System, but must not increase such discharges to the extent that levels of use estPblished under the provisions of Parts II A 1 and II A 3 cannot be maintained. 2. Notice to the District - The Town shall give the District written notice of increases, including all new Town connections and expansions of use, in the Town's use of the District System. The notice may be in the form of copies of sewer connection permits, delivered to the District within 30 days after issuance. 3. Restriction on Use of District's System - Whenever the capacity of any sewer, treatment cr disposal facility in the -8- District's System essential to the transport, treatment or disposal of wastewater discharged into the Town's System is fully used, neither the Town nor the District shall allow any further connections to (1) that portion of the Town's System which utilizes the fully -used sewer, treatment or disposal facility, (2) to portions of the District's System tributary to that portion of the Town's System, nor (3) to portions of the District's System tributary to the fully - used sewer, treatment or disposal facility, until additional capacity is provided. Section B Construction in District's System The following agreements concern construction work on the District System during the term of this agreement: 1. Building Sewers, Branches, Laterals, Mains and Trunks - Matters of design and construction of all sewers in that part of the District Area which is outside the Town are subject only to control by the District. Construction Work - When additional mains or trunks either in the Town or leading from the Town to the treatment and disposal facility are necessary to serve the Town or when it is apparent that such mains or trunks will become necessary in the reasonably near future, the District will design and construct them and will pay the cost cf doing so. Both design and construction of mains and trunks in the Town and the :canner of making Town recuests for construction are governed by Part II B 2 of this agreement. 3. Limitation cn Construction Obligation - The District is not obligated to do construction work under the provisions of any part of this agreement unless it can obtain money to pay the capital -9- cost by reasonable tax levy, sewer service charges, governmental grants or issuance of general obligation or revenue bonds. Section C Operation and Maintenance of District Sewers 1. Operation of Sewer System - The District shall operate and maintain its entire system except that portion of its system which is within the Town. The Town shall operate and maintain the portion of the District System which is within the Town. 2. Cost of Operation - The District shall pay the cost of operating and maintaining its entire system. Within the Town, the payment shall be in the form of reimbursement to the Town for the Town's cost. 3. Manner of Payment - Before December 1 each year the Town shall submit to the District the Town's estimate of the operation and maintenance cost during the next fiscal year for the portion of the District System which is in the Town. The District shall pay one-half of the total estimated by the following August 20 and the rest by the following January 31. Whenever an estimate appears to have been too low the Town may submit a revised estimate and the District shall pav the total amount of the revised estimate in the manner and at the times required for payments based on the original estimate. However, if the revised estimate is submitted after August 20 the District shall pay one-half of the increase, or if the revised estimate is submitted after January 31 the District shall pay all of the increase, and such payments shall be made within 60 days of the date the revised estimate is submitted. At the end of each fiscal year when the actual costs of operation -10- and maintenance are ascertained the proper party shall make either a prompt refund or a supplemental payment so that the total paid will equal the Town's cost. PART IV. TRANSPORTATION OF WASTEWATER TO TREATMENT PLANT Section A Method of Transportation The District is responsible for transporting all wastewater produced in the District to a treatment plant. The wastewater may be transported in the District's System or in the system of another agency, using contract rights. The District will pay all wastewater transportation costs. Section B Use of Trunk and Interceptor Capacity Reserved for District The April 1, 1965 contract referred to in Part I A 10 reserves to the District capacity in the Area X non -collector joint trunk and interceptor systems. In the exercise of its rights under that or any functionally similar contract, the District shall only transport wastewater produced in the District. Section C Accuisition of Additional Capacity When additional capacity in the Area X non -collector joint trunk and interceptor systems is necessary to serve the Town, the District will take all necessary steps to construct, contract for or otherwise acauire such capacity. Town requests for additional capacity in the Area X non -collector joint trunk and interceptor systems shall be made in the manner provided in Part II B 2, and the limitation on the obligation to accuire additional capacity is that stated in Part III B 3. PART V. TREATMENT AND DISPOSAL OF WASTEWATER -11- Section A District Responsibility, and Contracts The District shall treat and dispose of, or provide for the treatment and disposal of, wastewater produced in the Town in the same manner as other wastewater produced in the District, and shall pay the cost of doing so. The District shall contract with the cities of San Jose and Santa Clara for treatment and disposal of such wastewater in the manner now provided in the agreement entitled AGREEMENT BETWEEN CITIES OF SAN JOSE AND SANTA CLARA AND COUNTY SANITATION DISTRICT NO. 4 RELATING TO SEWAGE TREATMENT PLANT dated April 1, 1965. Section B Use cf Capacity Reserved for District In the exercise of its rights under the April 1, 1965 contract referred to in Part V A, the District shall only deliver for treatment wastewater produced in the District or on the Winery Property. Section C Accuisition of Additional Capacity When the full capacity of the treatment or disposal facility used to process wastewater from the Town (whether reserved by contract for the use of the District or existing in the form of a plant owned or partly owned by the District) is reached, or, based on reasonable projections, is about to be reached, the District will by contract or other appropriate means promptly provide additional capacity to meet the needs of the Town and the District. Town requests for additional treatment and disposal capacity shall be made in the manner provided in Part II B 2, and the limitation on the obligation to accuire additional capacity is the same as that provided in Part III B 3. PART VI. INTEREST OF TOWN IN DISTRICT ASSETS Section A Interests in Assets The District will hold and use all of its assets of every kind including land, interests in land, facilities, contract rights, causes of action and money, for the benefit of the entire District, including the Town, and the Town will derive the same benefits from the assets as any other part of the District. Section B Adjustment of Cost Burden of Acquisition of Assets Under the terms of the contract entered AGREEMENT BETWEEN TOWN OF LOS GATOS AND COUNTY SANITATION DISTRICT NO. 4 OF SANTA CLARA COUNTY, CALIFORNIA, dated December 1, 1958 the Town area did not pay, in the form of service charges, a share of the acquisition cost of District assets proportional to that paid by areas that were subject to District service charges. Payment of $358,742.00 by the Town to the District is appropriate to equalize the cost burden between the Town area and the rest of the District, and the Town will pay that amount to the District by June 30, 1977. PART VII. DISTRICT FEES AND CHARGES ON TOWN All annexation, frontage, acreage, unit connection fees and sewer service use charges uniformly applied in the District apply to transactions in the part of the District which is in the Town, and to the Winery Property. Where not specifically provided in this agreement, the District Manager and the Town Director of Public Works may make such arrangements as they find to be proper and specify in writing for the Town to collect fees and charges, to pav collections to the District and to be reimbursed for the cost of collection. PART VIII. FINANCIAL ARRANGEMENTS FOR FISCAL YEAR 1976-77 Section A Sewer Service and Use Charges 1. Charges within the Town - The rates of sewer service and use charges within the Town during the fiscal year 1976-77 shall be in accordance with the schedule adopted by the Town. 2. Manner and Time of Collection - The manner and time of collection of sewer service and use charges within the Town during fiscal year 1976-77 shall be determined by the Town and in general shall be in accordance with past practice. 3. Disposition of Collections - Sewer service and use charges collected from users in the Town during fiscal year 1976-77 belong to the Town. Section B Payments Due Town and District for Services Provided During Fiscal Year 1976-77 Payments by Town to District - The Town shall pay the District an amount equal to the amount of sewer service and use charges that would have been collected by the District at District rates from all premises within the Town, had District's sewer service and use charges been applicable within the Town during fiscal year 1976-77. The Town shall, for the purpose of determining the amount due the District, make available to the District all data obtained by the Town for determining the sewer service and use charges levied by the Town during fiscal year 1976-77. 2. Payments by District to Town - The District shall pay the Town all amounts due the Town pursuant to the terms of this agreement commencing with fiscal year 1976-77. 3. Time of Payments - Town shall pay District within 30 days -14- of receipt of a statement for the amount due pursuant to Part VIII B 1. The District shall pay the Town within 30 days of receipt of a statement for the amount due pursuant to Part VIII B 2. Notwithstanding the dates of the statements, neither payment is required to be made before June 1, 1977. IX. TERM OF AGREEMENT, RIGHTS AFTER TERMINATION Section A Term of Agreement This agreement is in effect from July 1, 1976 through June 30, 1986, and is automatically renewed for additional five year periods unless either party, at least one year before the termination of the initial period or any additional five year period, gives written notice to the other that it does not wish to renew this agreement. This agreement can also be terminated at any time by written agreement of the parties or by operation of law. If not otherwise terminated, this agreement shall terminate on July 1, 2001. Section B Rights After Termination The provisions of this Part IX B continue in effect after termination of this agreement and the parties shall then have the following rights and obligations. 1. Use of Town and District Systems - When this agreement terminates, the Town and the District shall each have the right to continue using the sewer system of the other, but shall have no further right to increase the amount or change the composition of wastewater discharged into any portion of the system of the other. 2 Payment for Sewer Use - If either party ccntinues to discharge wastewater into the system of the other, such party shall pay a portion of the operation and maintenance cost of the other's -15- (41,,(p system based on usage. The amount of the payment will be A - The calculation shall be performed in the following manner. The party using the system of the other is the user; the party owning that system is the owner. A unit is a segment of the owner's sewer system in which the I proportion is the same (or can readily be averaged) throughout, and which for the period in question also can reasonably be considered as a unit in terms of operation and maintenance cost. A is the owner's total operation and maintenance cost, B is the annual average rate of the user's wastewater flow, and C is the annual average rate of all wastewater flow. A, B and C are established for each unit and a separate amount is calculated for each unit. The sum of the amounts is the amount of the payment. 3. Payment for Sewer Capacity Use - If the Town continues to discharge, directly or via the District's system, wastewater into sewers the District does not own, but which the District has contract rights to use, the Town shall pay the District an amount equalling A • C , with A the District's contract cost for the length of sewer used for Town wastewater, B the annual average rate of Town wastewater flow and C the annual average rate of District (including Town) wastewater flow. To the extent possible, District costs will be calculated by allocating costs to units as in Part IX B 2. 4. Payment for Wastewater Treatment - The Town shall pay the District for treatment and disposal cost of Town wastewater an amount equalling A • Bfl , with A the total cost to the District for treatment Cf2 of wastewater at the facility in question, B the quantity of Town wastewater treated, C the quantity of District (including Town) wastewater treated, and f a factor representing the difficulty, in -16- terms of cost, of treating the wastewater in question. 5. Fiscal Year Basis - A1l data shall be recorded, and all calculations and payments shall be made on a fiscal year basis. 6. Offset for Taxes and Charges - Any District revenue from taxes, excluding bond service, and sewer service and use charges levied or charged to property in the Town during any fiscal year when the provisions of Part IX apply shall be an offset against the Town's obligation to pay the District for sewer system and sewer capacity use and for wastewater treatment. If the offset for any year exceeds the Town's obligation for that year, the difference shall be paid to the Town. X. MISCELLANEOUS PROVISIONS Section A Amendments This agreement is amendable only by means of written instruments executed with express authorization by the District Board and Town Council. Section B Disputes If either party contends that the other has breached or is breaching this agreement or that this agreement is inequitable, its governing body shall so notify the governing body of the other party and both Governing bodies (subject to all laws concerning the meetings of public agencies' governing bodies) shall meet jointly to resolve their differences. No action or suit concerning the terms or performance of this agreement shall be commenced, nor shall there be any act of rescission or notice of termination of this agreement other than the sort of notice provided for in Part IX A until the joint meeting has been held. The parties waive the statute of -17- limitations as to any cause of action which is the subject of the notification and meeting proceedings required by this Part X B during the time, not to exceed a reasonable time, required for the notice to be given and meeting to take place. Section C Delayed Payments If either party'fails to make any payment required by the provisions of this agreement when due, such party shall also pay reasonable interest on the amount due during the time of the delay. This Part X C does not authorize any delay in making any payment. Section D Successors and Assicins The agreements, covenants, conditions, limitations, restrictions and undertakings contained in this agreement, subject to the provision= about assignment, apply to and bind the successors and assigns of the parties. IN WITNESS WHEREOF, the parties hereto have executed this aareerner on the dates set forth beside their signatures, to become effective May 19, 1977, and the financial arrangements provided herein are to include the full fiscal year commencing July 1, 1976. ). Dated: '�'1-`1 t J (1- ; i e/7 g ATTEST: 1 Td' n Ci/er r •,l •/i i TOWN OF ) /S GATOS By ,e=-�G r3—"f to rney COUNTY SANITATION DISTRICT NO. 4 Or SANTA CLARA COUNTY Dated: ,�2u�, �/2 /��? BY �l%c���=a�,v %�. ,7��� >C" ATTEST: APP VED AS TO FORAI- Sdcretary � Y�'`�'`'r` District Counsel_ • I •j ^ N• v ff/NAI /TO 1V101 )V 1,51(6I �l ec _+ Ig LbC ommt. fingnin_l /WPM _ aggniPin _Pinang _ ignnni _.1!. Wangle __Onginn _ Canna __Ip,anne _ limomp_ ••~S_ 0.••••L i D<hVAT jA< Town Council Minutes November•4, 2002 Redevelopment Agency Los Gatos, California WEST VALLEY SANITATION DISTRICT/AGREEMENT EXTENSION (23.40) Robert Reid, Executive Director of West Valley Sanitation District, spoke of the upgrades in the district and how the system in Los Gatos can be upgraded uniformly throughout the community. He spoke of cleaning out the sewers and what needs to be done over the next year and a half. He noted the EPA requirements and how the district is prepared to review and implement them. The district needs time to analyze the new laws before presenting its agreement package to the Town. Motion by Mr. Glickman, seconded by Mrs. Decker, that Council authorize the Town Manager to negotiate and execute an extension to the current agreement with West Valley Sanitation District to June 30, 2004. Carried unanimously. VASONA CORRIDOR/LIGHT RAIL TO LOS GATOS/RESOLUTION 2002-176 (24.31) Bud Lortz, Director of Community Development, spoke of the corridor coming into Los Gatos and asked that the report be forwarded to the VTA Board so that the Board knows what the Town has accomplished and why the light rail to Los Gatos should be a part of the VTA Program. He emphasized that unless the Board knows that the Town supports this program it will focus the program's resources in other directions. Ray Davis asked that the policy statement not be sent to the VTA until after the new council has been seated. He does not approve of the increased traffic generation due to the Sobrato project and the proposed VTA extension into Los Gatos. Motion by Mr. Glickman, seconded by Mr. Blanton, that Council adopt Resolution 2002-176 entitled, RESOLUTION OF TOWN OF LOS GATOS SUPPORTING THE VASONA TO VASONA JUNCTION CANDIDATE CORRIDOR AND LIGHT RAIL EXTENSION TO LOS GATOS, and ask staff to forward the report with a letter from the Mayor to the Chair of the Valley Transportation Authority Board. Carried unanimously. BELOW MARKET PRICE HOUSING/FORECLOSURE PROCESS/RESOLUTION 2002-177 (25.39) Motion by Mr. Blanton, seconded by Mr. Pirzynski, that Council adopt Resolution 2002-177 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE PURCHASE AGREEMENTS FOR BELOW MARKET PRICE HOUSING PROGRAM UNITS IN FORECLOSURE AND/OR BANKRUPTCY PROCEEDINGS AND AUTHORIZING RELATED BUDGET ADJUSTMENTS. Carried unanimously. COUNCIL MATTERS (26.28) Mr. Glickman spoke of the new sub -committee formed by the Santa Clara County Cities Assoc. to explore legislative initiatives concerning redevelopment housing plans using funds for projects not within the jurisdiction of the town. He spoke of limiting the use of the funds to specific time periods, also using the funds for specific projects, and the third use would involve options for increased flexibility. He would like to recommend the first two options to the committee and the Assoc. Mr. Attaway noted that Council elections would take place tomorrow and he wished all of the Council candidates well in their endevors. MANAGER MATTERS (27.28) Mrs. Figone reminded Council and audience that November 12, 2002 will be a regular meeting, kept as short as possible, to be able to hear and study the Town's Housing Policy. ADJOURNMENT Mayor Attaway closed this evening's meeting at 8:55 p.m. ATTEST Marian V. Cosgrove, Town Clerk TC: D 13: MM 110402 Town Council Minutes November 4, 2002 Redevelopment Agency Los Gatos, California WEST VALLEY SANITATION DISTRICT/AGREEMENT EXTENSION (23.40) Robert Reid, Executive Director of West Valley Sanitation District, spoke of the upgrades in the district and how the system in Los Gatos can be upgraded uniformly throughout the community. He spoke of cleaning out the sewers and what needs to be done over the next year and a half. He noted the EPA requirements and how the district is prepared to review and implement them. The district needs time to analyze the new laws before presenting its agreement package to the Town. Motion by Mr. Glickman, seconded by Mrs. Decker, that Council authorize the Town Manager to negotiate and execute an extension to the current agreement with West Valley Sanitation District to June 30, 2004. Carried unanimously. VASONA CORRIDOR/LIGHT RAIL TO LOS GATOS/RESOLUTION 2002-176 (24.31) Bud Lortz, Director of Community Development, spoke of the corridor coming into Los Gatos and asked that the report be forwarded to the VTA Board so that the Board knows what the Town has accomplished and why the light rail to Los Gatos should be a part of the VTA Program. He emphasized that unless the Board knows that the Town supports this program it will focus the program's resources in other directions. Ray Davis asked that the policy statement not be sent to the VTA until after the new council has been seated. He does not approve of the increased traffic generation due to the Sobrato project and the proposed VTA extension into Los Gatos. Motion by Mr. Glickman, seconded by Mr. Blanton, that Council adopt Resolution 2002-176 entitled, RESOLUTION OF TOWN OF LOS GATOS SUPPORTING THE VASONA TO VASONA JUNCTION CANDIDATE CORRIDOR AND LIGHT RAIL EXTENSION TO LOS GATOS, and ask staff to forward the report with a letter from the Mayor to the Chair of the Valley Transportation Authority Board. Carried unanimously. BELOW MARKET PRICE HOUSING/FORECLOSURE PROCESS/RESOLUTION 2002-177 (25.39) Motion by Mr. Blanton, seconded by Mr. Pirzynski, that Council adopt Resolution 2002-177 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE PURCHASE AGREEMENTS FOR BELOW MARKET PRICE HOUSING PROGRAM UNITS IN FORECLOSURE AND/OR BANKRUPTCY PROCEEDINGS AND AUTHORIZING RELATED BUDGET ADJUSTMENTS. Carried unanimously. COUNCIL MATTERS (26.28) Mr. Glickman spoke of the new sub -committee formed by the Santa Clara County Cities Assoc. to explore legislative initiatives concerning redevelopment housing plans using funds for projects not within the jurisdiction of the town. He spoke of limiting the use of the funds to specific time periods, also using the funds for specific projects, and the third use would involve options for increased flexibility. He would like to recommend the first two options to the committee and the Assoc. Mr. Attaway noted that Council elections would take place tomorrow and he wished all of the Council candidates well in their endevors. MANAGER MATTERS (27.28) Mrs. Figone reminded Council and audience that November 12, 2002 will be a regular meeting, kept as short as possible, to be able to hear and study the Town's Housing Policy. ADJOURNMENT Mayor Attaway closed this evening's meeting at 8:55 p.m. ATTEST Marian V. Cosgrove, Town Clerk TC D13:MMI 10402