Item 14 Staff Report Adopt Resolution Approving Addendum No. 2 to Sewer Agreement Between the Town of Los Gatos and West Valley Sanitation District't
COUNCIL AGENDA REPORT
DATE: MAY 24, 2001
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
MEETING DATE: 6/4/01
ITEM NO. / :
ADOPT RESOLUTION APPROVING ADDENDUM NO. 2 TO SEWER
AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST
VALLEY SANITATION DISTRICT
RECOMMENDATION:
Adopt resolution (Attachment 1) approving Addendum No. 2 to the Sewer Agreement (Exhibit A)
between the Town of Los Gatos and West Valley Sanitation District.
BACKGROUND:
On May 19, 1977, the Town entered into an agreement (Attachment 2) with West Valley Sanitation
District entitled "District 4 - Los Gatos 1977 Sewer Agreement."
On December 4, 1991, the Town and District entered into an Amendment to the Agreement to
facilitate certain changes in procedures and technology.
DISCUSSION:
This addendum extends the Agreement for one year with an automatic two year extension unless
notice is given by either party to cancel the Agreement. The purpose of this extension is to continue
the special arrangements between the District and the Town for maintenance of the Town sewer
system. The Agreement basically works as follows:
The sanitary sewer fees are collected by the West Valley Sanitation District to maintain the sanitary
sewer collection system. The maintenance within the Town is provided by the Parks and Public
Works Department on a twenty-four hour basis.
(Continued on Page 2)
PREPARED BY: LES WHIT
Interim Director i f Parks and Public Works
Reviewed by: Ol& Attorney
Reformatted: 7/14/99
Revised: 5/24/01 12:15 PM
N:\PP W\CNCLRPTS\W V SD.TCR.wpd
1
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING ADDENDUM NO. 2 TO SEWER
AGREEMENT
May 24, 2001
DISCUSSION: - (Cont.)
The service provides for scheduled sewer/lateral line cleaning, unscheduled blockage clearing, sewer
pump station maintenance, infrastructure repairs and/or replacement when required. These on -going
operating cost are reimbursed to the Town by the District annually with sanitary sewer fees.
The extension also provides time for the Town and District to evaluate federal regulations that
impact sewer operations. With respect to these new regulations, the District Manager advised the
Town in a letter dated January 11, 2001 the following:
The CMOM regulations are clear in stating that "Any owner or operator of a
municipal satellite collection system must submit a complete application (for a
NPDES permit)." A new sewer agreement between the District and the Town will
need to stipulate that each agency is responsible for obtaining and complying with
its own permit. A new agreement will also require strict liability clauses to protect
each agency from potential permit violations and enforcement actions against the
other. It should also be clarified in a new agreement that the local collection system
operations component of the District's annual budget will be separately tracked to
ensure greater equity. Residents of Campbell, Saratoga, and other areas should not
be subsidizing Los Gatos operations or vice -versa, particularly if there are
substantial variations in permit compliance costs.
The alternative to this type of agreement would be a plan to make one agency
wholly responsible for the Town's sewer collection system. Even if this is not
currently a politically popular decision, the Town may wish to analyze the cost and
benefits of alternative service choices for future sewer operations.
In order to evaluate these new regulations and future alternative service delivery choices, the Town
and District have agreed to participate in an amount up to $25,000 each in the F.Y. 2001-2002
Budget to hire an independent consultant.
CONCLUSION:
It is recommended that the Council adopt the attached Resolution approving Amendment No. 2
to the Sewer Agreement.
ENVIRONMENTAL ASSESSMENTS:
This is not a project as defined under CEQA, thus no further action is required.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION APPROVING ADDENDUM NO. 2 TO SEWER
AGREEMENT
May 24, 2001
FISCAL IMPACT:
$25,000 included in the 2001-2002 Non -Department Proposed Operating Budget.
Attachments:
1. Resolution approving Addendum No. 2 to the Sewer Agreement (with Exhibit A)
2. Original Sewer Agreement of 1977
3. Letter from Robert Reid, District Manager, West Valley Sanitation District
Distribution:
Robert R. Reid, District Manager, West Valley Sanitation District, 100 East Sunnyoaks Avenue,
Campbell, CA 95008-6608
RESOLUTION r
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
APPROVING ADDENDUM NO. 2 TO SEWER AGREEMENT
BETWEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
BE IT RESOLVED, an agreement was previously entered into on May 19, 1977 between
the West Valley Sanitation District and the Town of Los Gatos, and was amended on December 4,
1991.
BE IT FURTHER RESOLVED, that the Town of Los Gatos, County of Santa Clara, State
of California, enter into an Agreement (attached as Exhibit A) as the Second Amendment to
Agreement with West Valley Sanitation District, and that the Mayor is authorized, and is hereby
directed to execute said agreement in the name and on behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos held on the 4tn day of June, 2001 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
Attachment 1
CONTINUATION AGREEMENT AND AMENDMENT NO. 2
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
, 2001 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 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
Exhibit A
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: TOWN OF LOS GATOS
TOWN ATTORNEY
DISTRICT COUNSEL
2
By:
Title:
WEST VALLEY SANITATION
DISTRICT OF SANTA CLARA CO.
By:
Title:
DISTRICT 4 — LOS GATOS
1977 SEWER AGREEMENT
Attachment 2
EC'D ''AYi 0 1977
i
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
4
II A USE OF THE TOWN'S SYSTEM
1. Discharges into Town System
4
2. Winery Property 5
3. Increase in Discharge
5
4. Determination of Capacity 5
n
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 8
III DISTRICT SEWER SYSTEM 8
III A 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
1. Building Sewers, Branches, Laterals,
Mains and Trunks 9
2. Construction Work 9
3. Limitation on Construction Obligation 9
III C OPERATION AND MAINTENANCE OF DISTRICT SEWERS 10
-2-
PART SECTION
III C
IV
IV A
IV B
IV C
V
✓ A
✓ B
✓ C
VI
VI A
VI B
VII
VIII
VI I I A
VIII
TABLE OF CONTENTS
1. Operation of Sewer System
2. Cost of Operation
3. Manner of Payment
TRANSPORTATION OF WASTEWATER TO
TREATMENT PLANT
METHOD OF TRANSPORTATION
USE OF TRUNKR DISTRICT
ITERCEPTOR CAPACITY
RESERVED
ACQUISITION OF ADDITIONAL CAPACITY
TREATMENT AND DISPOSAL OF WASTEWATER
DISTRICT RESPONSIBILITY. AND CONTRACTS
USE OF CAPACITY RESERVED FOR DISTRICT
ACQUISITION OF ADDITIONAL CAPACITY
INTEREST OF TOWN IN DISTRICT ASSETS
INTERESTS IN ASSETS
ADJUSTMENT OF COST BURDEN OF ACQUISITION
OF ASSETS
DISTRICT FEES AND CHARGES ON TOWN
FINANCIAL ARRANGEMENTS FOR FISCAL YEAR
1976-77
SEWER SERVICE AND USE CHARGES
Charges within the Town
Manner and Time of Collection
1.
2.
3. Disposition of Collections
B PAYMENTS DUE TOWN
AND DISTRICT
FOR 7SERVICES
PROVIDED DURING
1. payments by Town to District
P AGE
10
10
10
11
11
11
11
11
12
12
12
13
13
13
13
14
14
14
14
14
14
14
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n r
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"
fl
(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 treatment 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 paid 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 condemnation.
-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 BETWEEN CITIES OF SAN JOSE AND SANTA CLARA AND
COUNTY SANITATION DISTRICT NO. 4 RELATING TO SEWAGE TREATMENT PLANT
or any 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
regulation) or by contract of the District from discharging into
the District's System.
14. Constructed Bv, 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 1958 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-
shall discharge
both shall take
anv user of the
Section B
Town:
a prohibited substance into the Town System, and
reasonable measures to prohibit such discharge by
System.
Sewer Construction in the Town
The following agreements concern construction work in the
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 to
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
the approval.
anv District recommendation made before
+ 2. Mains and Trunks - Matters of design and construction of
mains and trunks are subject only to control by the District. Town
made to the District
needed. It is the
requests for main or trunk construction must be
before the main or trunk is
District to build the mains
at least one year
obligation of the
to convey wastewater which may, under the terms of this agreement,
be 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
constructing mains and trunks.
and trunks necessary
and pay the capital cost of
Section C Payment for Right to Use E<istinq Sewers
By July 1, 1977 the District shall pay the Town $36,506.00
to and discharge wastewater into
for the right to connect
sewers
-6-
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 quantity of wastewater specified
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 right to increase
the amount of wastewater discharged into its system from areas not
in the Town or via sewers other than the Town's System, but must
not increase such discharges to the extent that levels of use
established 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 or 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.
2. 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 of doing so. Both design and construction of mains and trunks
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, 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
the District System which is in
one-half of the total
next fiscal year for the portion of
the Town. The District shall pay
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 pay the total
amount of the revised estimate in the manner and at the times
required for payments based on the original estimate.
the revised estimate is submitted after
However, if
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 Acauisition 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
acquire 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 acquire additional capacity is that stated in
Part III B 3.
PART V. TREATMENT AND DISPOSAL OF WASTEWATER
r
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 of 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 Acquisition 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 acquire 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 Acauisition 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
in the form of service charges, a share of the acquisition cost
pay,
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 pay 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 s'ewer 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
1. 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
recuired 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 continues 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
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 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 - , 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 - All data shall be recorded, and all
calculations and payments shall be made on a fiscal year basis.
6. Offset for Taxes and Charges - Anv 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. MISCELLAvEOUS 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-
4
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 Assigns
The agreements, covenants, conditions, limitations, restrictions
and undertakings contained in this agreement, subject to the provisions
about assignment, apply to and bind the successors and assigns of
the parties.
IN WITNESS WHEREOF, the parties hereto have executed this agreement
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.
TOWN OF LOS GATOS
By
Mayor
Dated:
ATTEST:
Dated:
ATTEST:
Secretary
Town Clerk
APPROVED AS TO FORM:
Town Attorney
COUNTY SANITATION DISTRICT NO. 4 OF
SANTA CLARA COUNTY
BYLI�tCC'„
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April 13, 2001
WEST VALLEY SANITATION DISTRICT
OF SANTA CLARA COUNTY
TOWN MANAGER.
Debra Figone, Town Manager
Town of Los Gatos
110 East Main Street'
Los Gatos, CA 95030
RE: Continuation of Sewer Agreement Between Town and District
Dear Ms. Figone:
SERVING RESIDENTS OF
CITY OF CAMPBELL
TOWN OF LOS GATOS
CITY OF MONTE SERENO
CITY OF SARATOGA
UNINCORPORATED AREA
Attached to this letter is the draft for a proposed continuation agreement between our two
agencies. As I discussed with you at our meeting several weeks ago, the U. S. Environmental
Protection Agency's new regulations for sewer collection systems are currently on hold pending
review by the Bush administration.
Our most prudent course of action at this time would appear to be a short-term extension of the
current agreement. The attached document extends the agreement for a one year period with
provision for an automatic renewal of two additional years. This should allow sufficient time for
both our agencies to assess the impact of whatever new regulations are finally promulgated and
follow up with a suitable new long-term agreement. In addition an indemnification clause has
been added to the agreement for our mutual protection and benefit.
I anticipate meeting with you in the near future so that we can move this matter forward in a
timely fashion. Please feel free to call me at your convenience at 408-378-2407.
Sincerely,
Robert R. Reid
District Manager
cc: Randy Attaway, WVSD Board/Los Gatos Council
Charles Kilian, District Counsel
Orry Korb, Town Attorney
100 East Sunnyoaks Avenue, Campbell, California 95008-6608 Tel: (408) 378-2407 Fax: (408) 364-1821
Attachment 3
RESOLUTION 2001 - 63
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
APPROVING ADDENDUM NO. 2 TO SEWER AGREEMENT
BETWEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
BE IT RESOLVED, an agreement was previously entered into on May 19, 1977
between the West Valley Sanitation District and the Town of Los Gatos, and was amended on
December 4, 1991.
BE IT FURTHER RESOLVED, that the Town of Los Gatos, County of Santa Clara,
State of California, enter into an Agreement (attached as Exhibit A) as the Second Amendment to
Agreement with West Valley Sanitation District, and that the Mayor is authorized, and is hereby
directed to execute said agreement in the name and on behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos held on the 4th day of June, 2001 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman,
Mayor Joe Pirzynski.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED: /s/ Joe Pirzynski
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
Town Council Minutes June 4, 2001
Redevelopment Agency Los Gatos, California
MINUTES OF MAY 21, 2001 (06.V)
Ray Davis, resident, asked that page five of the minutes reflect his statements in entirety.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council approve the Minutes ofMay 21, 2001
Town Council/Redevelopment Agency Meeting as submitted. Carried unanimously.
SHANNON ROAD 14045/HICKS ROAD 17101/PLANNED DEVELOPMENT (10.15)
Ray Davis, resident, asked that Shannon Road be improved by any future developers before any further
projects are permitted.
Motion by Mr. Blanton, seconded by Mrs. Decker, to accept report in the form of Planning
Commission minutes recommending denial ofDevelopment Application DEV-99-002 and Architecture
and Site Application S-99-5. (It was noticed that this item would return to Council for hearing on July
16, 2001 at the request of the applicant.) Carried unanimously.
FOSTER ROAD 17975/RESIDENTIAL/PLANNED DEVELOPMENT (12.15)
Ray Davis, resident, asked that any future development on Foster Road have appropriate road repairs
included with the conditions of approval.
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council accept report in the form of Planning
Commission minutes recommending approval of Development Application GP-00-02, HS-00-1, DEV-
98-9 and Negative Declaration ND-98-15. Carried unanimously.
WEST VALLEY SANITATION DISTRICT/SEWER AGREEMENT/RESOLUTION 2001-63 (14.40)
Mr. Attaway noted the long standing agreement that the Town has had with the Sanitation District to
maintain its own sewer lines. Due to new federal regulations Los Gatos will extend its agreement for
one year while a consultant is hired and the new regulations and future alternative service delivery
choices are evaluated. With that information Council can determine if it will continue maintaining its
own sewers or contract with the District for the additional service.
Motion by Mr. Attaway, seconded by Mrs. Decker, that Council adopt Resolution 2001-63 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS APPROVING ADDENDUM #2 TO SEWER
AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY
SANITATION DISTRICT. Carried unanimously.
BAY AREA ALLIANCE COMPACT FOR SUSTAINABLE BAY AREAJRESO 2001-64 (14.41)
Mrs. Decker asked that growth management, particularly affordable housing, be addressed in this
resolution.
Mr. Glickman noted that this is a work in progress without sufficient specifics to garner his support.
Mr. Attaway believes Los Gatos has done an excellent job in supporting the goals mentioned in this
report and that now is the time to request that the rest of the valley implement some of our ideas in
regards to transportation and housing.
Mr. Blanton noting the work in progress, he anticipates that there will be more facts and supportive
information as the project moves forward.
Mr. Pirzynski supports the resolution and the avenue for Los Gatos to lend its voice to the regional
plans for a sustainable bay area. He spoke of the partnership and ability to have a voice in these
decisions.
Motion by Mr. Pirzynski, seconded by Mr. Attaway, that Council adopt Resolution 2001-64 entitled,
RESOLUTION OF THE TOWN OF LOS GATOS SUPPORTING THE BAY AREA
ALLIANCE'S DRAFT COMPACT FOR A SUSTAINABLE BAY AREA. Carried by a vote of
3 ayes. Mr. Glickman and Mrs. Decker voted no.
TC:DI3:MM060401 9