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Item 16 Staff Report Adopt Resolution Authorizing the Town Manager to Execute Amendment No. 1 to the 1977 Sewer Agreement Between the West Valley Sanitation District and the Town of Los GatosCOUNCIL AGENDA DATE: 12/2/91 ITEM NO. TOWN OF LOS GATOS COUNCIL AGENDA REPORT DATE: November 20, 1991 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER SUBJECT: ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE 1977 SEWER AGREEMENT BETWEEN THE WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS RECOMMENDATION: Adopt resolution authorizing the Town Manager to execute Amendment No. 1 to the 1977 Sewer Agreement between the West Valley Sanitation District and the Town of Los Gatos. BACKGROUND: The District Manager/Engineer of the West Valley Sanitation District of Santa Clara County and Town staff have been working together since June of 1991 on an Amendment to the 1977 Sewer Agreement between West Valley Sanitation District and the Town of Los Gatos for construction and maintenance of our waste water system. Town staff and the District Manager/Engineer are in agreement with the amendment. Legal Council for the District and the Town Attorney have approved the amendment as to form, and the District Board approved the Amendment at their November 13, 1991 meeting. DISCUSSION: Adoption of the attached Resolution will allow the Town Manager to execute Amendment No. 1 to 1977 Sewer Agreement between the West Valley Sanitation District and the Town. This Amendment will bring the Town into conformance with current practices and procedures. Upon approval of the Council, an executed and dated original will be returned to the District. FISCAL IMPACT: Town Engineering staff will no longer be required to perform design and inspection functions related to public sewers. These tasks will be performed by the staff of West Valley Sanitation District. During the 1992/93 budget process, we will evaluate this impact as it relates to our overhead rate. PREPARED BY: SCOTT R. BAKER, Director of Building & Engineering Svcs. 5R8:MLR:lkj L20\cncl rpts\sewragrm.pfm MICHAEL LaROCCA, Director of Parks, Forestry and Maintenance Svcs. 11/20/91 5:02 pm File # ATTACHMENTS: 1. Resolution 2. 1977 Sewer Agreement 3. Amendment No. 1 to 1977 Sewer Agreement DISTRIBUTION: West Valley Sanitation District, 100 East Sunnyoaks Ave., Campbell, CA 95008 Reviewed by: r_.:'. Attorney Clerk Finance Treasurer COUNCIL ACTION/ACTION DIRECTED TO: RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE 1977 SEWER AGREEMENT BETWEEN WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS WHEREAS, West Valley Sanitation District gave written notice that they wished to amend the existing agreement as spelled out under the Terms of Agreement Section A of the 1977 Sewer Agreement. WHEREAS, the West Valley Sanitation District and Town Staff have met since June of 1991 and agreed upon the recommended changes to the Agreement on November 7, 1991. WHEREAS, the West Valley Sanitation District Board has approved the amendment at their November 13, 1991 meeting. RESOLVED: that the Town Manager be authorized to execute Amendment No. 1 to the 1977 Sewer Agreement between West Valley Sanitation District and the Town of Los Gatos 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, California, held on the day of 1991, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: A I'EST: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA L20\cncl rpts\sewragrm.pfm ATTACHMENT 1 RESOLUTION 1991-266 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE 1977 SEWER AGREEMENT BETWEEN WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS WHEREAS, West Valley Sanitation District gave written notice that they wished to amend the existing agreement as spelled out under the Terms of Agreement Section A of the 1977 Sewer Agreement. WHEREAS, the West Valley Sanitation District and Town Staff have met since June of 1991 and agreed upon the recommended changes to the Agreement on November 7, 1991. WHEREAS, the West Valley Sanitation District Board has approved the amendment at their November 13, 1991 meeting. RESOLVED: that the Town Manager be authorized to execute Amendment No. 1 to the 1977 Sewer Agreement between West Valley Sanitation District and the Town of Los Gatos 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, California, held on the 2nd day of December 1991, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Mayor Eric D. Carlson, and Brent N. Ventura NAYS: None ABSENT: None ABSTAIN: None SIGNED: /s/ Eric D. Carlson MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA A'flEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS L20\cncl rpts\sewragrm. pfm n 7.177.17P.TCT 4 - LOS G.T.77:73 1977 SEWER AGREEMENT 17/, 166 ATTACHMENT 2 TABLE OF CONTENTS PART SECTION PAGE I GENERAL PROVISIONS 1 I A DEFINITIONS 1 1. Town Sewer System 1 cE, er 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 3. 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 1. Sewers, Branches and 6 2. Mains ai...i Trunks 3. Cost of Construction 6 II C PAYMENT FOR RIGHT TO USE EXISTING SEWERS 6 I I D OPERATION AND MAINTENANCE OF TOWN'S 7 SEWER SYSTEM 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 TABLE OF CONTENTS PAGE PART SECTION III C 1, Operation.of Sewer System 10 2. Cost of Operation 10 3. Manner of Payment 10 IV TRANSPORTATION OF WASTEWATER TO 11 TREATMENT PLANT 11 IV BUSE OF TRUNK AND INTERCE2TOR CAPACITY RESERVED FOR DISTRICT 11 IV C ACQUISITION OF ADDITIONAL CAPACITY 11 V TREATMENT AND DISPOSAL OF WASTEWATER 11 ✓ A DISTRICT RESPONSIBILITY, AND CONTRACTS 12 ✓ B 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 B ADJUSTMENT OF COST BURDEN OF ACQUISITION 13 OF ASSETS VII DISTRICT FEES AND CHARGES ON TOWN 13 VIII FINANCIAL ARRANGEMENTS FOR FISCAL YEAR 14 1976-77 VIII A SEWER SERVICE AND USE CHARGES 14 1. Charges within the Town 14 2. Manner and Time of Collection 14 3. Disposition of Collections 14 VIII B PAYMENTS DUE TOWN AND DISTRICT FOR SERVICES 14 PROVIDED DURING FISCAL YEAR 1976-77 1. Payments by Town to District 14 TABLE OF CONTENTS PAGE PART SECTION VII I B 2. Payments by District to Town 14 3. Time of Payments 14 IX TERM OF AGREEMENT, RIGHTS AFTER TERMINATION 15 - TE R,R r• F AG t'E E""ENT 15 __ 1. Use of Town and DIstric z. 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 AMENDMENTS17 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 _onst_�._ dhv t' e 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. S. Sewer - Sanitary sewer (as distinguished from storm sewer) including conduit, manholes, vertical risers, cleanouts, and other appurtenances. (a) Building 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 I l.' 7 : ^ c 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, cr because cf 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 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 c - _..._t and collecti: , fees and 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 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 of s "co.^.str _;:ted_, b " t1.,ace"_r'_ which ow', __ i1... _ , 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 7 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 s-.. _ _. iv -we'- , or r e is a s_lbsta_. i_._ in the manner in s_on. 3. Increase in Discharge - 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. S. 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 given 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 prohibit such discharge by any user of the System. Section B Sewer Construction in the Town The following agreements concern construction work in the and construction of building sewers, branches and lateral::. 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 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 by the District. Town requests 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 to build the mains and trunks necessary 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 and pay the capital cost of constructing -rains and trunks. Section C Payment for Right to Use Existing 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 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. R` s - �?' ^t and payments shall "7e mau_ in the manner pro? Med Section E Administration of Town's Sewer System 1. Town 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 request 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 Obligations - 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 request, 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 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 char .._' b - t' c -:o Yc._._.ts r'or and recipients of sewer 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 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 to that portion of the Town's System, ;Do_ Distr s System tributary to t e 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. Buildina 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. Limitaticn 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 L:hin the Town. The Town shall operate and maintain '-ne portion C 1_12 Distri - S;Jst "time.n is w______ tn_ 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 pay the total amount of the revised estimate in the manner and at the times recuired 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 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 al `.: _ t to a --..7-_-,a=ant wastewater .Life w ati _evv. =;,_ r .. ,_. 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 Acquisition 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 ste:s 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 -11- Section A District Responsibility, and Contracts The District shall treat and dispose of, or provide for t} treatment and disposal of, wastewater produced in the Town in the same manner as other wastewater produced in the District, and sh- pay the cost of doing so. The District shall contract with the c ties f _ o_ such 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 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 acquire additional capacity is the sane 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, i - c1udirg the T;,wn will der_ 'e t e �.-._ benefits from asset r,--...a_ _ the D s _. 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 amply to transactions in the part of the District which is in the Tear, 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. - The n'"" c service _ cnar;a. within ._- Town G:,._n- 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 ccllected 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 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 • ` 7-- :GF:_ =7' PI _.=TS 7._.E?. -- • •"_= 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 Riahts 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 part~ 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 • C' 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 B proportion is the same (or can readily be �n_o° q.'._ a}, w'n r.'n 'or the period in c- as __on 3io can - be cc: e_- tea_.Tr. o_ .- _ __"...- 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 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 - Any District revenue from taxes, excluding bond service, and sewer service and use charges or c .r-- -r� _ n t e Town during any fiscal year :x asc _ shall be an offset acainst 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' coverninc 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 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 -• _ `__h _ p a _ �r a 4 3 o _ c . TOWN OF/ OS GATOS r *- provi ..Jns of this agreement when due, such party snail 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 provisionE about assignment, apply to and bind the successors and assigns of the parties. IN WITNESS WHEREOF, the parties hereto have executed this agreemen 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 / �� 4-.( ATTEST: T Dated: )/Y? � . . e 2 / 9/2 7 By t c./r --7,t.' By /�Ct" ��✓�,�`�� ttorney COUNTY SANITATION DISTRICT NO. 4 OF SANTA CLARA COUNTY '/ v ATTEST: Sc::c:'e_ terry APPWDVED JAS TO FOR'•1: i District Counse j 11/6/91 AMENDMENT N0. 1 TO 1977 SEWER AGREEMENT BETWEEN THE WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS This Amendment to Agreement is made and entered into this day of , 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 ATTACHMENT 3 (f) 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) Plumbing 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 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 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 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, exce?t 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 KATHERINE ANDERTON Town Attorney APPROVED AS TO FORM: , ` l'^ 7 DISTRR'CT COUNSEL ?/_,;x,:i,� pfm007:a;\contract\amendt ig.doc Revised 11/7/91 5 By: TOWN MANAGER Town of Los Gatos P.O. Box 949 Los Gatos, CA 95031 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA CO. By: Title: Chairperson of the Board of Directors 100 East Sunnyoaks Avenue Campbell, CA 95008 Telephone (408) 378-2407 December 2, 1991 Los Gatos, California AMICUS BRIEF/YEE V. CITY OF ESCONDIDO Motion by Mr. Blanton, seconded by Mr. Ventura, that Council authorize participation in the above -referenced case at no cost to the Town. Carried unanimously. UNIVERSITY AVE 634/REICH/FEE REFUND Motion by Mr. Blanton, seconded by Mr. Ventura, that Council grant a fee refund in the amount of $1,450. Carried unanimously. DIRECTOR OF PUBLIC WORKS/TOWN CODE SEC 2-7(b)/RESOLUTION 1991-261 Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-261 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPOINTING THE TOWN MANAGER AS ACTING DIRECTOR OF PUBLIC WORKS FOR THE PURPOSE OF PERFORMING THE RESPONSIBILITIES SET FORTH IN TOWN CODE SECTION 2-7(b). Carried unanimously. 9211 PROJECT/TRAFFIC SIGNAL/WIMBLETON AND WINCHESTER/RESOLUTION 1991-262 RESOLUTION 1991-263 Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-262 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH THE SANTA CLARA COUNTY TRAFFIC AUTHORITY FOR THE ADMINISTRATION OF THE SIGNALIZATION OF WIMBLETON DRIVE AND WINCHESTER BOULEVARD. Carried unanimously. Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-263 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING PLANS AND SPECIFICATIONS FOR PROJECT 9211 SIGNALIZATION OF WIMBLETON DRIVE AND WINCHESTER BOULEVARD. MID -PENINSULA HOUSING COALITION/ASSIGNMENT AND ASSUMPTION AGREEMENT RESOLUTION 1991-264 Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-264 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE RATIFICATION OF THE MID -PENINSULA HOUSING COALITION ASSIGNMENT AND ASSUMPTION AGREEMENT AND ESCROW INSTRUCTIONS. Carried unanimously. CRIMINAL APPREHENSION PROGRAM/OCJP GRANT APPLICATION/(C-CAP) RESOLUTION 1991-265 Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-265 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO ENTER INTO A C-CAP GRANT AWARD AGREEMENT. Carried unanimously. SEWER AGREEMENT/WEST VALLEY SANITATION DISTRICT/RESOLUTION 1991-266 Motion by Mr. Blanton, seconded by Mr. Ventura, that Council adopt Resolution 1991-266 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO EXECUTE AMENDMENT NO.1 TO THE 1977 SEWER AGREEMENT BETWEEN WEST VALLEY SANITATION DISTRICT AND THE TOWN OF LOS GATOS. Carried unanimously. TC:D2:MM120291 2