Item 29 Staff Report Adopt Resolution Authorizing Town Manager to Execute Service Agreement with the West Valley Sanitation District for Storm Water Management Program (Continued from April 6, 1992).TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: April 16, 1992
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 4/20/92
ITEM NO.
c9
( 9,1 -3G
ADOPT RESOLUTION AUTHORIZING TOWN MANAGER TO EXECUTE SERVICE
AGREEMENT WITH THE WEST VALLEY SANITATION DISTRICT FOR STORM WATER
MANAGEMENT PROGRAM (CONTINUED FROM APRIL 6, 1992).
RECOMMENDATION:
Adopt resolution authorizing the Town Manager to enter into an agreement with the West Valley Sanitation
District for the Storm Water Management Program.
BACKGROUND:
On March 2, 1992, the Town Council gave conceptual approval for the staff report related to the West Valley
Sanitation District Storm Water Management Program. The report proposed that the West Valley Sanitation
District and the Town were each best suited to manage certain aspects of the requirements related to the
Federally mandated National Pollution Discharge Elimination System (NPDES) permit. The report also
contended that the best method to fund the program was through a "Use Charge" added to the sewer
assessment. Subsequently, the Board of Realtors has suggested that the Town collect fees by increasing
the garbage or utility rates.
DISCUSSION:
Staff evaluated four potential funding options and discussed each in the Town Council staff report of
March 2, 1992. Staff continues to believe that the "Sewer Service and Use Change: is the most appropriate
mechanism to collect the needed revenues.
(Continued on Page 2)
PREPARED BY: SCOTT R. BAKER
Director of Building and Engineering Services
SRB:cs 4/16/92 8:03 am
C19\CNCLRPTS\STORMWRT
Attachments: See Page 3 for list of Attachments
Distribution: See Page 4 for distribution list
Reviewed by: Attorney CIE,rk Finance
Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVING AN AGREEMENT WITH THE WEST VALLEY SANITATION DISTRICT
April 16, 1992
In verbal and written (Attachment 3) communications, the Board of Realtors has expressed various concerns.
The Board of Realtors expressed concern that a "Use Charge" might negatively impact owners of apartment
complexes if "rent control" restrictions prevented owners from passing on the proposed additional changes.
Staff's research concludes that an increase in sewer fees can be passed on under current rent control
provisions and, therefore, will not present an undue hardship upon landlords.
The Board of Realtors was also concerned that staff could easily increase the fees without informing the rate
payers, and if future program requirements (and funding needs) diminished that excess funds might not get
returned to the rate payer. The proposed agreement specifies that at termination of the agreement any
unencumbered funds would be returned to the rate payer. Also under the agreement any future rate
increases be properly noticed and presented as Public Hearings. This would provide sufficient opportunity
to hear public comments on any proposed rate structure changes. In addition, under "Fund Accounting"
principles, it would be illegal for staff to spend these funds for projects other then Storm Water Management
and if fund balances are unencumbered at the end of the fiscal year, they would "roll over" to the next fiscal
year program or be placed in reserves.
The Board of Realtors contends that people other than property owners create the pollution and that fees
based on trash or utility services would be more evenly distributed. While all pollution has a source, the term
"Non -Point Source" describes the general process of storm waters picking up pollutants from the surface
of property and transporting them to federal receiving waters. Staff believes the nexus between the property
and source of pollution is clear. Also staff found that property owners would be able to pass on fees to
renters and tenants, thereby, making the distribution of the proposed fees very equitable.
The Board of Realtors would prefer the issue be put to a vote of the people and questioned the legality of
this fee without a vote. Sunnyvale and San Jose have already established this funding source with advice
of their legal counsel. We know of no legal challenges to these programs at this time.
The proposed agreement would define respective rights and responsibilities of the Town and the West Valley
Sanitation District. The division of duties can be found on page 11 and 12 of the agreement (Attachment 1).
The proposed fees are minimal and would be based on the type of use (ie, Residential, Commercial,
Industrial) and the area of the parcel. Staff recommends a flat rate of $9.60 per year for all single-family
dwellings regardless of parcel area (Attachment 2). If the agreement is approved, the West Valley Sanitation
District would establish the parcel database information necessary to determine the exact fee for each
parcel. The cost for West Valley Sanitation District to do this work would be included in the 1992-93
operating budget.
The agreement (Part V A.) calls for three year agreements to be automatically renewed unless one party
gives written notice at least one year before termination. The agreement can be terminated at any other time
only on written agreement of both parties.
The West Valley Sanitation District Board of Directors is made up of five members, one member from each
jurisdiction served by the West Valley Sanitation District. Councilmember Joanne Benjamin currently
represents the Town of Los Gatos on the West Valley Sanitation District Board of Directors. The City of
Campbell and Monte Sereno have already approved this agreement. If the three jurisdictions have a concern
with the agreement, the jurisdictions collectively constitute a majority of the West Valley Sanitation Board
of Directors. Staff believes the three jurisdictions will be closely allied and support one another in West
Valley Sanitation District Board of Directors decisions. The agreement has a provision which provides that
the West Valley Sanitation District Board of Directors can select the attorney to defend the West Valley
Sanitation District in the event of a law suit due to flooding. A concern was expressed that the West Valley
Sanitation District might hire an outrageously expensive attorney. It seems unlikely that a board consisting
of elected officials representing local jurisdiction would act in a manor contrary to the best interest of their
constituents.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVING AN AGREEMENT WITH THE WEST VALLEY SANITATION DISTRICT
April 16, 1992
The agreement requires the Town to indemnify the District under a board range of circumstances. In case
of litigation resulting from flooding the agreement (Part II D.), specifies that we indemnify the West Valley
Sanitation District. The West Valley Sanitation District did not design or construct the Town storm water
drainage system and under the agreement would have a inspection and maintenance responsibility. It is
understandable that the West Valley Sanitation District would want to limit its exposure in this area. The
West Valley Sanitation District would indemnify the Town for willful and negligent acts of its personnel.
The Town would also be required to hold the West Valley Sanitation District harmless for actions regarding
the validity or legality of this agreement. If the rate structure were successfully challenged after fees had
been collected, the District would remain responsible on a pro -rate basis up to an amount equal to the total
fees allocated to the West Valley Sanitation District. The Town would also hold the West Valley harmless
from fines or civil penalties related to the operation of the storm water management program, except for
fines resulting from the sole negligence or willful misconduct of the West Valley Sanitation District. The Town
will remain responsible for its obligation to satisfy NPDES permit requirement. The West Valley Sanitation
District will act as a sub -contractor preforming specific duties (see Page 7 and 8 Exhibit A). The West Valley
Sanitation District has little to gain from entering into this agreement and has sought to limit its exposure
to liability, except for willful misconduct or negligence.
CONCLUSION:
Non -Point Source pollution is a result of storm waters picking up pollutants from property surfaces and
transporting them into the storm drain system and eventually into the bay. Sunnyvale and San Jose have
combined their storm water and sanitary sewer programs at the administrative, enforcement, operational and
financial levels. The "nexus" between the storm and sewer programs has been reviewed and sanctioned by
legal and regulatory authorities (including the State) because both programs are driven by Bay protection
objectives.
Staff believes that the West Valley Sanitation District can provide various activities necessary to the Town's
NPDES permit compliance. Because storm drains and sanitary sewers are similar in design and function,
the West Valley Sanitation District can deliver specific activities at a lower cost to the rate payer.
The West Valley Sanitation District would hold the public hearing on the fees necessary to fund the program
and the fees would be collected by the Tax Assessor. Providing a funding source for this program would
eliminate the need to fund the program from the General Fund and drainage basins making them available
to other CIP programs.
Improvement in the ecological vitality of the Bay could increase property values and return program costs
to the property owner through increased property values.
FISCAL IMPACT:
The County Assessor would collect the revenues and forward them to the West Valley Sanitation District.
The District would then send the Town its share based upon the work plan budget. Minimum level of
service would generate approximately $120,000 in new program revenue. These revenues would be
dedicated to non -point source projects and relieve the General Fund of this obligation.
ATTACHMENTS:
1. Resolution
A. Agreement
2. Revenue Estimate
3. Letter from the Board of Realtors
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: APPROVING AN AGREEMENT WITH THE WEST VALLEY SANITATION DISTRICT
April 16, 1992
DISTRIBUTION:
West Valley Sanitation District, c\o Bill Gissler, 100 E. Sunnyoaks Avenue, Campbell CA 95008
City of Campbell, c\o Bill Helms, 70 N. First Street, Campbell CA 95008
Board of Realtors, 20454 Blauer Drive, Saratoga CA 95070
Chamber of Commerce, P.O. Box 1820, Los Gatos CA 95031
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
WEST VALLEY SANITATION DISTRICT FOR THE STORM
WATER MANAGEMENT PROGRAM
BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town Manager is authorized to enter into an agreement
with West Valley Sanitation District for the Storm Water Management Program.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
A ITEST:
day of , 1992, by the following vote.
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
C 19: RESOS\STORMWAT
ATTACHMENT 1
Qs, . (0. 3c
AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
REGARDING IMPLEMENTATION OF A STORM
WATER MANAGEMENT PROGRAM
TABLE OF CONTENTS
Page No.
RECITALS 1-3
PART I - DEFINITIONS
A. Storm Sewer System 4
B. Catch Basins 4
C. Runoff 4
D. Town Manager 4
E. Manager/Engineer 4
F. Cost 4
G. Capital Cost 4
H. Operation and Maintenance 4
Cost 5
I. General Administrative Cost 6
J. Fiscal Year 6
K. Work Plan 6
PART II - AGENCY RELATIONSHIP CREATED
A. Appointment of District as Town
Agent 6
B. Duties of the District 7
C. Duties Retained by the Town 7
D. Indemnity 8
PART III - ADDITIONAL DUTIES OF THE PARTIES
A. Additional Duties of the Town11
B. Additional Duties of the
District 12
PART IV - FINANCIAL PROVISIONS
A. Annual Submission of Town's
Estimate 12
B. District's Estimate 13
C. Establishment of Storm Sewer
Charge 13
D. Annual Review of the Storm
Sewer Charge 14
E. Limited Use of Funds 14
F. Payment to District and Town 14
PART V - TERM OF THE AGREEMENT; RIGHTS AND
OBLIGATIONS UPON TERMINATION
A. Term of the Agreement 15
B. Rights upon Termination 15
C. Survival of Indemnities 15
PART VI - MISCELLANEOUS PROVISIONS
A. Amendments 16
B. Disputes 16
C. Successors and Assigns 16
EXHIBIT A
IN WITNESS WHEREOF 17
AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
REGARDING IMPLEMENTATION OF A STORM
WATER MANAGEMENT PROGRAM
Agreement, made and entered into this day
of 1992, by and between the Town of Los Gatos,
a municipal corporation of the State of California,
hereinafter referred to as "Town", and West Valley
Sanitation District of Santa Clara County, a county
sanitation district organized and existing pursuant to
the Health and Safety Code of the State of California
hereinafter referred to as "District,"
RECITALS
WHEREAS, pursuant to the 1987 amendments to the
Federal Clean Water Act, the United States Environmental
Protection agency has promulgated final regulations
requiring cities to obtain a National Pollutant
Discharge System (NPDES) permit to discharge storm
sewers to receiving waters; and
WHEREAS, said final EPA regulations have set forth
an extensive and exhaustive course of action in which
demands have been placed on cities to properly maintain
and monitor their storm sewer systems, and in the
future, could contain requirements for significant
reconstruction; and
[ D 1 /WVSD/T ] 1
WHEREAS, Town, along with twelve other cities, the
County of Santa Clara, and the Santa Clara Valley Water
District, have obtained an NPDES permit on June 20,
1990, which allows and requires Town to regulate and
manage its storm sewer system in accordance with
requirements developed by the Santa Clara Valley
Non -point Source Control and Storm Water Management
Program; and
WHEREAS, District's boundaries encompass the vast
majority of the Town and therefore Town's storm sewer
system is entirely within District's boundaries; and
WHEREAS, District, among other things, is
empowered to construct, maintain, and operate a refuse
and industrial waste disposal system in conjunction with
its sanitary sewer system; and
WHEREAS, Town's storm sewer system conveys all
waste water flow which is excluded from sanitary sewers
including debris, pollutants, chemicals, offal, leaves
and cuttings, trimmings from trees, shrubs and grass,
in organic refuse and rubbish and, garbage which
accumulate on streets and pavement. Much of said
"non -point source pollution" is carried untreated by the
Town's storm sewer system to the Southern portion of San
Francisco Bay. During some storm events, the resulting
wastewater flow in the District's sanitary sewer system
and at the Wastewater Pollution Control Plant more than
[D1/WVSD/T] 2
doubles, thereby creating a substantial burden on the
District's sanitary sewer system; and
WHEREAS, therefore Town's storm sewer system and
District's sanitary sewer system are integrally related
to each other such that District's sanitary sewer system
is directly impacted by Town's storm sewer system; and
WHEREAS, in order to conserve and protect its
sanitary sewer system, as well as to assist Town in
maintaining and operating a refuse and industrial waste
disposal program through its storm sewer system,
District is authorized under law to enter into this
agreement; and
WHEREAS, Town wishes to designate District as its
agent for the performance of various functions required
to be performed by Town under the terms of the Clean
Water Act, EPA regulations, and the terms and conditions
of its NPDES permit; and
WHEREAS, the parties wish to clarify their
respective rights and responsibilities under the
above -described relationship through this agreement,
NOW, THEREFORE, for and in consideration of their
mutual covenants, promises, and obligations, Town and
District do hereby agree as follows:
Part I - DEFINITIONS
Except where the context otherwise requires, the
following definitions of this Section shall govern the
[D1/WVSD/T] 3
construction of this agreement:
A. Storm Sewer System (sometimes termed "storm sewer")
shall mean any pipe, conduit, or sewer of the Town
designed or used for the disposal of storm and surface
waters and drainage including unpolluted cooling water
and unpolluted industrial process water, but excluding
any community sanitary sewer system.
B. Catch Basins shall mean box -like underground
concrete structures with openings in curbs and gutters
designed to collect water from streets and pavements.
C. Runoff shall mean water from rain, lawn watering,
melting snow, or irrigation that flows over the surface
of the ground.
D. Town Manager shall mean the Town Manager, or
designee, of the Town of Los Gatos.
E. Manager/Engineer shall mean the Manager/Engineer of
West Valley Sanitation District of Santa Clara County.
F. Cost shall mean 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.
G. Capital Cost shall mean any and all costs and
expenses, except those described in Part I, Section H,
paragraph 1 below reasonably incurred in connection with
the acquisition, construction, and installation of a
[D1/WVSD/T] 4
facility, which is part of the storm sewer system, and
which adds capacity to the existing system; including,
but not limited to:
1) Those related to acquisition, purchase, or
lease of land, easements, rights of way or other
interests in land.
2) Those related to acquisition, construction,
and installation of a facility, or part thereof,
including costs of labor, materials, and equipment,
amount paid to contractors, engineering costs, cost of
preliminary and final reports, designs, plans and
specification and legal costs.
3) All other costs reasonably incurred in
connection with or incidental to the above.
H. Operation and Maintenance Cost shall mean any and
all costs and expenses reasonably incurred in the
administration, operation, maintenance and repair of any
facility in the storm sewer system, including, but not
limited to:
1) Items ordinarily recognized as capital items
(e.g. interests in land) when reasonably necessary to
maintain the capacity of the storm sewer system had when
new.
2) Replacement of portions of an existing
facility damaged or destroyed as a result of accident or
natural disasters.
[ D 1 /WVSD/T ] 5
3) Damages and settlements paid in the course of,
or because of, threatened or actual 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 cost item 4) liability
insurance premiums.
I. General Administrative Cost shall mean a portion of
the total general expenses of the Town or District which
cannot be directly related to operation and maintenance
of a particular storm sewer system facility but is
expressed as a percentage of the Town's or District's
total operational expense.
J. Fiscal Year shall mean the period from July 1
through June 30 of the following year.
K. Work Plan shall mean a schedule of activities for
the proposed fiscal year including specific goals,
objectives and milestone dates. The plan shall include
a summary of personnel, contractual assistance, if
necessary, and materials for each objective.
Part II - AGENCY RELATIONSHIP CREATED
Appointment of District as Town Agent shall mean
District is hereby appointed as Town's agent for
purposes of performing certain duties as described
hereinafter which duties are those for which Town is
obligated to perform under the terms of NPDES permit
[D1/WVSD/T] 6
issued to Town on June 20, 1990 as may hereafter be
amended.
B. Duties of the District The following duties of the
District shall be:
1) Plan, implement and enforce delegated
responsibilities of a storm water pollution prevention
program consisting of:
(a) locating and eliminating illicit connections.
(b) investigating illegal dumping.
(c) administering an industrial permit program,
including review of industry storm waste pollution
prevention plans, processing industry notices of
intent, and reviewing industrial monitoring programs.
2) Plan and implement a public/industry
notification and education program on storm water
pollution prevention including the marking of storm
sewer system catch basins specified by the Town.
3) Inspect, clean and maintain the Town's storm
sewer system.
4) Any duties, which are unspecified herein, but
which are required to be performed under the terms of
the Town NPDES permit.
C. Duties Retained by the Town: The following duties
are retained by the Town:
[D1/WVSD/T] 7
1) Participate in and interpret the requirements
of the county -wide non -point source program through the
Santa Clara Valley Water District.
2) Implement the household hazardous waste
disposal program.
3) Develop a storm water management plan,
including preparation of an updated storm sewer master
plan, policies, design standards, performance standards,
and a computer based system mapping.
4) Schedule, engineer and construct storm sewer
system improvements and system rehabilitation.
5) Perform street sweeping and storm flooding
relief.
6) Perform incidental storm drain maintenance as
determined to be necessary by the Town.
D. Indemnity
1) Each party agrees to indemnify, defend, and
hold harmless the other party (its officers, agents, and
employees) from any claim or demand by reason of any
injury to or death of any person or damage to any
property which may be made against that party (its
officers, against, and employees) caused by, or alleged
to have been caused by, any act or omissions, negligent
or otherwise, of the other under this agreement.
[D1/WVSD/T] 8
2) Notwithstanding the indemnity, described in
subparagraph 1) Town hereby agrees to indemnify, defend,
and hold harmless the District from any claim or demand
by reason of any injury to or death of any person or
damage to property which may be made against the
District (its officers, agents, or employees) due to
flooding caused by, or alleged to have been caused by,
the Town's storm sewer system. Notwithstanding this
provision, the District shall indemnify Town for any
injury, death, or property damage due to flooding
proximately caused by the negligence or wilful act of
any District employee, agent, or officer. Town,
however, retains the obligation to defend, at Town's
sole cost, the District from any such claim or demand
for injury, death, or damage due to flooding regardless
of how said injury death or damage is caused .
Town shall keep the District and its insurance
carrier informed of the status of any and all claims or
demands with respect to any flooding event above
described, and District or its insurance carrier retains
the right to engage its own legal counsel to defend any
action brought against it under the provisions of this
paragraph, provided, however, that Town shall reimburse
District or its insurance carrier for any legal costs,
including reasonable attorney's fees, reasonably
[D1/WVSD/T] 9
necessary in defending the District from any claim or
demand described in this paragraph.
3) Notwithstanding the indemnity described in
subparagraph 1) above, Town agrees to indemnify defend,
and hold District (its officers, agents, and employees)
harmless from any action brought by any party having
standing which contests the validity or legality of this
agreement, or that of any ordinance, resolution, minute
order, regulation, or administrative ruling made by
either the Town or the District which is adopted by that
agency to carry out the purposes of this agreement.
This indemnity by the Town includes any action brought
contesting the validity of any fee or charge imposed by
the District to finance the program described in this
agreement or its method of collection. Notwithstanding
anything to the contrary contained herein, District
shall remain responsible, on a pro-rata basis, for any
monetary, awards,
settlements up to
collected by, and
judgments, orders for
restitution, or
an amount equal to the total fees
allocated to the District, and Town
shall not be responsible for indemnifying District for
such awards, judgments, orders for restitution or
settlements to the extent of its pro-rata share of the
fees collected by and allocated to the District.
4) Notwithstanding the indemnity described in
subparagraph 1) above, Town agrees to indemnify, defend
[D1/WVSD/T] 10
and hold District harmless from any fines, civil
penalties, or other costs imposed by any governmental
agency having jurisdiction, resulting from either
parties' operation or maintenance of the Town's storm
sewer system; provided, however, Town shall not
indemnify District against any fines, civil penalties or
other costs, which are determined to be due solely to
the District's negligence or wilful misconduct.
5) Each party will, at its sole cost and expense,
obtain and maintain in full force and effect throughout
the entire term of this agreement adequate insurance to
cover each party's responsibilities under this
agreement.
Part III - ADDITIONAL DUTIES OF THE PARTIES
A. Additional Duties of the Town
1) Upon execution of this agreement, Town shall
forthwith adopt all necessary ordinances, and
resolutions to implement its duties under this agreement
including ordinances regulating storm discharge
requirements, suspension of service, and other
enforcement measures regarding improper discharges into
the Town's storm sewer system.
2) The Town shall have the sole responsibility of
enforcing all laws; ordinances, and regulations
regarding the Town's storm sewer system including the
controlling of improper discharges into the system.
[D1/WVSD/T] 11
3) The Town, as a discharger, shall have the sole
responsibility regarding all dealings with the Santa
Clara Valley Non -point Source Control and Storm Water
Management Program, the California Regional and State
Water Quality Control Boards, E.P.A., and all other
agencies having jurisdiction with respect the operation
and maintenance of the Town's storm sewer system under
its NPDES permit.
B. Additional Duties of the District
1) Upon execution of this agreement, the District
shall forthwith adopt all necessary ordinances, and
resolutions to implement its duties under this agreement
including an ordinance or resolution adding a storm
sewer service charge to the District's schedule of fees
and charges.
2) The District shall be responsible for imposing
and collecting all fees and charges necessary to fund
the operation and maintenance cost and general
administrative costs incurred by both parties in
operating and maintaining the Town's storm sewer system.
Capital costs as defined in this agreement shall be
funded solely by the Town through sources other than the
District's storm sewer service charge.
Part IV - FINANCIAL PROVISIONS
A. Annual Submission of Town's Estimate
At least, 120 days prior to the beginning of the
fiscal year, Town shall submit, in writing, to the
[D1/WVSD/T] 12
District its estimate of its maintenance and operation
and general administrative costs for the new fiscal year
that the Town will incur as a result of the performance
of its duties under this agreement. The Town shall be
responsible for maintaining sufficient data to justify
its costs described herein.
B. District's Estimate
During that same period, District shall estimate
its own operation and maintenance and general
administrative costs for the new fiscal year that it
will incur as a result of the performance of its duties
under this agreement. A work plan supporting these
cost estimates shall be submitted to the Town for its
review and aproval. The District will be responsible
for maintaining sufficient data to justify its costs
described herein.
C. Establishment of Storm Sewer Service Charge
Utilizing the two estimates described above,
together with establishing a reasonable reserve, the
District Board of Directors shall, after public hearing,
establish a storm sewer service charge by resolution.
Said resolution shall set forth the specific amount of
the fee, describe the specific services to be performed,
describe the estimated cost of the services to be
performed, describe the reasonable relationship between
[D1/WVSD/T] 13
the fee and the service to be performed, and set forth
the time of payment and manner of collection.
D. Annual Review of the Storm Sewer Charge
On an annual basis the Board of Directors shall
review the charges to determine whether the amount is
reasonably related to the service being provided and
whether the reserve fund is still needed. Said charge
may, at such meeting, be adjusted up or down.
E. Limited Use of Funds
The revenues raised by the payment of the storm
sewer charge shall not be co -mingled with other District
funds but shall be budgeted within a special storm sewer
system account to be used solely to perform District
work on the Town's storm sewer system or to reimburse
the Town for the performance of its services on its
storm sewer system.
F. Payment to District and Town
Upon receipt of the revenue derived from the
imposition of said charge, the District shall
immediately reimburse itself and the Town based upon the
estimates previously submitted. If the actual
expenditures exceed any estimate, then the actual amount
shall be reimbursed to the District or Town, as the case
may be, to the extent that there are reserve funds in
the storm sewer system account.
[D1/WVSD/T] 14
Part V - TERM OF THE AGREEMENT; RIGHTS
AND OBLIGATIONS UPON TERMINATION
A. Term of the Agreement
This agreement shall be in full force and effect
for a period of time beginning on July 1, 1992, and
extending to and including the 30th day of June,
1995, and is automatically renewed for additional three
(3) year periods unless either party, at least one year
before termination, 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
June 30, 2012.
B. Rights Upon Termination
Upon termination, the balance remaining in storm
sewer system account shall be distributed to the parties
to the extent that each has incurred actual costs with
respect to the operation and maintenance of the Town's
storm sewer system. All remaining sums shall be
refunded to the property owners from which the funds
were collected on a pro-rata basis.
C. Survival of Indemnities
All indemnity provisions contained in this
agreement survive its termination.
[D1/WVSD/T] 15
Part VI - MISCELLANEOUS PROVISONS
A. Amendments
This agreement is amendable only by means of
written instrument executed with express authorization
by the Town Council and the District Board of Directors.
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 in Part E(1)
until the joint meeting has been held. The parties
waive any statute of limitations as to any cause of
action which is subject of the notification and meeting
proceedings by this part during the time, not to exceed
•
a reasonable time, required for the notice to be given
and the meeting to take place.
C. Successors and Assigns
The agreements, covenants, conditions,
limitations, restrictions and undertakings contained in
[D1/WVSD/T] 16
this agreement apply to and bind the successors and
assigns of the parties. The rights and obligations
of this agreement may not be assigned by any party
without the written consent of the other.
IN WITNESS WHEREOF, the parties hereto have
executed this agreement on the date set forth beside
their signatures, to become effective on 1992.
Dated: TOWN OF LOS GATOS
By
TOWN MANAGER
ATTEST: APPROVED AS TO FORM:
Town Clerk Town Attorney
Dated: WEST VALLEY SANITATION DISTRICT
OF SANTA CLARA COUNTY
By
ATTEST: APPROVED AS TO FORM:
Secretary District Counsel
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ATTACHMENT 2
April 15, 1992
Mr. Eric Carlson
Mayor
Los Gatos Town Council
P.O. Box 949
Los Gatos, CA 95031
Dear Mayor Carlson:
Los Gatos-S :atoga Board of REALTORS®
20454 Blauer Drive, Saratoga, California 95070
Telephone 408 867-0922
FAX 408 867-5406
TOWN OF +_OS GATOS
OFFICE OF TOWN CLERK
C+✓
On behalf of the 1,400 members of the Los Gatos -Saratoga Board of
Realtors, I am writing to express our opposition to the staff
proposal, authorizing the West Valley Sanitary District(WVSD) to
establish a Storm Water Assessment District and permit taxation
authority over Los Gatos property owners. The proposed tax would
assess property owners approximately $10.00 per year for the
purpose of providing additional storm water management services.
We respectfully request that you reevaluate this proposal and
direct staff to seek alternative funding mechanisms.
We recognize the vital importance of providing these services,
and the fiscal dilemma that Town of Los Gatos faces. We also
understand that the requirements for the program are mandated by
the federal government with no funding to implement the
requirements; however, we object to the proposed funding
mechanism for numerous reasons.
The formation of an assessment district for general fund purposes
is inequitable and unfairly burdens property owners who would be
paying for a program which will be provided to and benefit all
residents in the Town of Los Gatos. In addition, the pollution
associated with storm water draining into the San Francisco Bay
and its tributaries is not caused solely by owners of property,
but by residents of Los Gatos regardless of their ownership
status.
We are more concerned because the staff proposal creates and open
ended tax, with no cap and no date for terminating the district.
Further the tax can be increased each year in response to new
service requirements, without voter approval. In fact, the
current proposal already projects substantial increases in the
service levels in the future, which would require increases in
the assessment.
The scope of the proposal is unprecedented and extends beyond the
traditional taxation authority of the West Valley Sanitary
District. While apparently legal, this proposal clearly
REALTOR:- is a registered mark which identifies a professional in
real estate who subscribes to a strict Code of Ethics as a member of
REALTOR ' the NATIONAL ASSOCIATION OF REALTORS!
1
ATTACHMENT 3
OOR
1
circumvents the _requirements of Prop. 13 for 2/3 voter approval
for such increases to property taxes. We are equally concerned
that this approach effectively denies the public the opportunity
to decide, through the electoral process, whether their property
taxes should be increased for these purposes.
While the current council and WVSD may have no intention of
pursuing increases or additional assessment districts, we are
concerned that future councils and sanitation district
representatives may establish additional assessment districts,
levy additional parcel taxes and further circumvent the electoral
process in order to impose property taxes. Given the current
economic climate, it is doubtful that the public would concur
with the approach to raising revenue that is being considered.
Approximately $60,000 is currently earmarked in the general fund
to pay for non point source programs. We strongly object to the
general fund monies being replaced by the proposed property
assessment and believe that general fund program costs should be
shared by the entire community. Further, broad based funding
mechanisms are currently being utilized by a majority of Santa
Clara County cities to pay for this program.
Of the 13 Santa Clara County cities under the federal mandate,
only one(San Jose) assesses property owners for storm water
management. Monte Sereno and Campbell have agreed to contract
with the West Valley Sanitation District, but Monte Sereno has
not decided on the funding mechanism. Saratoga and Cupertino, as
well as 8 other cities in Santa Clara County, either charge a fee
to residents, not property owners, or pay for this through their
general fund. The fees are generally included in the solid waste
management billing or utility bills. Saratoga, Cupertino, Palo
Alto, and Mountain View effectively utilize this funding
mechanism. According these cities, the fee -to -resident funding
mechanism is the most equitable means by which to share the cost
of the program. Those cities that pay for the program from the
general fund calculate the cost/benefit ratio on a per resident
basis not a per parcel basis.
We recommend that the council: (1) ensure that the public is
given the opportunity to fully participate in the process by
putting the proposed property tax to a vote of the people(staff
recommendation #1). (2) adopt a broad based funding mechanism
similar to those in neighboring Saratoga and Cupertino.(staff
recommendation #2). Staff has indicated that there is
insufficient time to hold an election before fines are imposed by
the federal government. If needed, the town could apply to the
Regional Water Quality Management Board and request an extension
of program implementation until an appropriate funding mechanism
was established. Staff has further indicated that there is not
sufficient nexus bewteen the solid waste management billing
process and services provided under Storm Water Management. This
funding mechanism has proven effective in neighboring communities
and the proposed Storm Water Management Program actually includes
solid waste management programs such as household hazardous waste
disposal and community street sweeping.
We urge you to reevaluate this proposal when you consider it on
April 20, and direct staff to explore alternative methods of
funding these services. We have met with town staff on this
issue and would be happy to meet again with town representatives
to discuss more equitable solutions.
We would like to meet with you at your earliest convenience to
discuss the issue. Eric Morley, the Board's Legislative
Advocate, will be contacting you to schedule an appointment.
Sincerely,
Robert E. Catalano
President
cosup.csa
RESOLUTION 1992-66
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
WEST VALLEY SANITATION DISTRICT FOR THE STORM
WATER MANAGEMENT PROGRAM
BE IT RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town Manager is authorized to enter into an agreement
with West Valley Sanitation District for the Storm Water Management Program.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 20th day of April, 1992, by the following vote.
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Brent Ventura, and Mayor Eric D.
Carlson
NAYS: Steven Blanton
ABSENT: None
ABSTAIN: None
SIGNED: /s/ Eric D. Carlson
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'1"1'EST:
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
c19\resos\stormwat
TO: MARIAN V. COSGROVE, TOWN CLERK
FROM: SCOTT BAKER, DIRECTOR OF BUILDING AND ENGINEERING SERVICES SliPt
DATE: APRIL 21, 1992
SUBJECT: AGREEMENT WITH THE WEST VALLEY SANITATION DISTRICT FOR STORM
WATER MANAGEMENT PROGRAM
Attached is a copy of an agreement with the West Valley Sanitation District for a Storm Water Management
Program approved by the Town Council on April 20, 1992.
Please have the Town Manager sign this agreement, and return this document to our attention for transmittal
to West Valley Sanitation District.
Attachment
SRB:ms
EN12\MEMOS\TRANS
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4/29/92
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AGREEMENT RELATING TO INSPECTING AND CLEANING OF STORM
DRAINAGE SYSTEM IN A PORTION OF LOS GATOS
AGREEMENT, made by West Valley Sanitation District of
Santa Clara County, hereinafter referred to as "District,"
and the Town of Los Gatos, hereinafter referred to as
"Town."
RECITALS:
A. The Town, to be in compliance with the 1990 Clean
Water Act and to fulfill its obligations under the
National Pollutant Discharge Elimination System
Permit issued by the California Regional Water
Quality Control Board, is required to develop a
comprehensive storm water management program which
includes a routine cleaning and maintenance of its
existing storm sewer systems.
B. The District, being experienced and equipped to
inspect and clean sewage pipes and system
facilities, proposes to inspect and clean a
portion of the Town's storm system, under a pilot
program to determine the extent of work and the
resources required for a full program.
C. The Town and the District have identified a pilot
program area in the vicinity of University Avenue
and Blossom Hill Road, and southerly thereof to
Andrews Street. The area, consisting of
commercial and residential properties, is shown on
Exhibit Map A, dated March 27, 1992.
IT IS THEREFORE AGREED AS FOLLOWS:
A. SCOPE OF WORK
1. The District by field inspection will locate
all storm drains, manholes, and outfall
structures within the public right-of-way in
the pilot area. The District will map these
facilities on its sanitary sewer location
maps at a scale of 1" = 100'.
2. The District will inspect all storm drains
and manholes within the public rights -of -way
in the pilot area. Catch basins and manholes
containing debris will be cleaned.
Connecting laterals and mains will be
visually inspected by mirror and flashlight.
3. The District will prepare an inspection
report on each facility, noting the cleaning
work that was done, if any, and the condition
of the facility after cleaning. If flow is
found, its quantity will be estimated and
source identified if possible. Sources of
flow not identified will be noted for further
investigation by television inspection and/or
adjacent public property inspection.
Television inspection of sewers will only be
performed upon mutual concurrence of both
Town and District.
4. The District will maintain records of
personnel and equipment time expended to
perform the inspections, cleaning, and report
preparation. This information will be used
in preparing a Town -wide program.
5. The Town will assist the District by
providing available mapping and historic
maintenance information on the storm drainage
system. Should special traffic control or
other public safety measures be required, the
Town will provide them or assist the
District.
6. The Town will perform inspections of storm
drainage systems on private property. The
District will assist the Town to identify
sources of flow. The Town will notify
private property owners of illegal flow and
corrective action to be taken.
B. SCHEDULE OF WORK
The District will perform the inspection and
cleanin wo k within the public right-of-way
during 1992. The report preparation will be
do concurrently but may not be finalized until
-44R992. Special investigations of
unid ntified and/or illegal flows may require
longer.
C. COMPENSATION
The Town will compensate the District on a time
and materials basis at the following hourly rates.
(The rates for labor are comprised of hourly wages
and employer -paid benefits. They do not include
district administrative overhead, such as
utilities, insurance, etc.)
Labor
Maintenance Superintendent
Maintenance Supervisor
Maintenance Leadworker
Clerical staff
Engineering Technician
Equipment
Vactor unit
Pickup truck
Dump truck
TV unit
Water truck
$52.26
40.95
36.70
28.02 - 46.60
26.98
$45.00
7.50
12.50
30.00
35.00
The District estimates the basic work of inspection,
cleaning, and reporting can be done in the pilot area
at a cost not to exceed $3,000.
Television inspection and special investigation of
flows or damaged facilities are not included in the
above estimate.
IN WITNESS WHEREOF, t(he`parties have executed this agreement
this A1) -%L - day of �� tiL ' , 1992.
APPROVED AS TO FORM:
KA HERINE ANDERTON, TOWN
ATT
ORNEY
ATTEST:
AR V. COSGROVE
CLERK OF THE aTO ..LjhOS GATOS
4/29/92
WEST VALLEY SANITATIOrDISTRICT
OF SANTA,CLARA COUNTCALIFORNIA
By: a/e . .1
WILLIAM A. GI R
DISTRICT MANAGER/ENGINEER
TO
By:
LOS
ID KNAPP Iv
TOWN MANAGER
The f01egoIna Instrument IS •
a-fN0t espy of 'he ottani
en flls this Mos
ATTEM MARIAN V. COSGROVE
DIRECTOR OP SERVICES
CLERK OR THE THAW OP OAiOS
By (/ ✓ (�� 2-i--e.t.
DATE
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LOS GATOS NON -POINT SOURCE
PILOTAREA
EXHIBIT MAP 'A' MARCH 27, 1992