Item 21 Staff Report Adopt Resolution Authorizing Town Manager to Enter Into Agreements with Dennis Varni and West Valley Sanitary District for Sanitary Sewer Improvements31
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: August 30, 1991
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 9/3/91
ITEM NO. <
ADOPT RESOLUTION AUTHORIZING TOWN MANAGER TO ENTER INTO
AGREEMENTS WITH DENNIS VARNI AND WEST VALLEY SANITARY DISTRICT FOR
SANITARY SEWER IMPROVEMENTS
RECOMMENDATION:
Adopt the draft resolution authorizing the Town Manager to enter into agreements for sanitary sewer
improvements.
BACKGROUND:
The sewer system which serves Oak Meadow Park, Vasona Park and 718 University Avenue has deteriorated
to the point where it is nearly at maximum capacity and requires frequent maintenance. The property owner
at 718 University Avenue is currently constructing a 27,000 square foot office building. Staff has concluded
that the additional demands placed on the sewer due to the new development could cause the system to
fail. Failure could result in contamination of Los Gatos Creek.
When the sewerline was originally constructed the Town, Guadalupe Rubbish Disposal Company, Inc., and
Nilsson entered into an agreement to share costs as follows:
a. Town 68.07% of total construction cost.
b. Green Valley 22.47% of total construction cost.
c. Nilsson 9.46% of total construction cost.
Contributing parties had the right to connect for normal connection fees only and the Town was to own the
line. Green Valley never connected.
Staff has been working with the West Valley Sanitary District (WVSD) and the property owner to negotiate
an equitable sharing of the costs of necessary improvements. It has been tentatively agreed that:
• The owner will contribute 50 percent of the project cost up to $30,000.
• The Town will contribute 25 percent of the project cost.
• The WVSD will contribute 25 percent of the project cost.
• If the project exceeds the estimated $60,000 total cost, the Town and the WVSD will contribute equal
shares as necessary to cover the additional cost.
PREPARED BY:
(Continued on Page 2)
SCOTT R. BAKER i ""k'7C2)
Director of Building and Engineering Services
SRB:cs
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ATTACHMENTS: (See Page 2 for List of Attachments)
DISTRIBUTION: (See Page 2 for Distri.ution List)
Reviewed by: f..:, Attorney Clerk
Finance Treasurer
8/30/91 2:55 pm
File #
COUNCIL ACTION/ACTION DIRECTED TO:
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AUTHORIZING TOWN MANAGER TO ENTER INTO AGREEMENTS
WITH DENNIS VARNI AND WEST VALLEY SANITARY DISTRICT FOR SANITARY SEWER
IMPROVEMENTS
August 30, 1991
On August 14, 1991 the WVSD Board of Directors approved an agreement describing the responsibilities
of the Town and WVSD (Attachment 3).
DISCUSSION:
Because the building is likely to be ready for occupancy before the new sewer line can be constructed, staff
believes that short term accommodations can be implemented to provide a transition:
1. The existing sewer would continue to function during the construction of the new sewer.
2. Parks, Forestry and Maintenance Services Department would closely monitor the existing line and
increase the maintenance levels as needed.
3. In addition, it is anticipated that full occupancy would be achieved over time i.e., not all spaces
would be occupied immediately and system use is based on occupant load.
CONCLUSION:
Staff recommends that this project is in the public interest to protect the Health and Welfare of the citizens
and is worthy of favorable consideration.
FISCAL IMPACT:
It is recommended that $20,000 be allocated from Capital Improvement Program Fund #033 to fund the
Town's share of this project. It is possible that future upstream development could recoup some of the
project costs. Place the Oak Meadow Park gabion wall project on the unfunded list. This project is not
feasible to construct this year.
ATTACHMENTS:
1. Resolution
2. Agreement relating to replacement of sanitary sewers to serve 718 University Avenue.
3. Agreement between Town and West Valley Sanitary District.
DISTRIBUTION:
Dennis Varni, 573 University Ave., Los Gatos, CA 95030
Bill Gissler, West Valley Sanitation District, 100 East Sunnyoaks Ave., Campbell, CA 95008
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO ENTER INTO
AN AGREEMENT FOR SANITARY SEWER IMPROVEMENTS
WHEREAS, the health, safety, and welfare of the citizens of Los Gatos is of utmost
importance.
WHEREAS, it is in the public interest to improve this sewer line because it will avoid
potential long term maintenance and health problems.
WHEREAS, the proposed work is the best alternative and provides service to the
public parks.
BE IT RESOLVED, the Town Council authorizes the Town Manager to enter into
agreements with the West Valley Sanitary District and Dennis Varni as appropriate to
protect the public interest.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the day of 91, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
A'1"1'EST:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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ATTACHMENT 1
AGREEMENT RELATING TO REPLACEMENT
OF SANITARY SEWERS TO SERVE
718 UNIVERSITY AVENUE, LOS GATOS
This agreement is made and entered into this _ day of ,
1991, by the Town of Los Gatos hereinafter referred to as "Town", and Dennis Varni, the
property owner of 718 University Avenue, Los Gatos, hereinafter referred to as "Varni".
RECITALS
A. Varni is constructing an office/commercial development at 718 University
Avenue, Los Gatos, hereinafter referred to as "Project";
B. Varni wishes to connect the Project to the public sewer system owned
operated by the Town and the West Valley Sanitation District of Santa Clara County,
hereinafter referred to as "District" and asserts the right to connect to the existing
line based on a 1979 agreement between Green Valley and the Town. The Town
disputes Varni's rights under the 1979 agreement to connect to the system without
contribution.
C. District and Town have determined that the 6-inch sanitary sewer requires
replacement before it can be used as a dependable system to convey sewage from
the Project.
D. District and Town have entered into an agreement to equally fund 50 percent
of the sewer replacement.
IT IS THEREFORE AGREED AS FOLLOWS:
TOWN'S RESPONSIBILITIES:
1. Town will not detain the issuance of a certificate of occupancy for the project
because it has been connected to an existing 6-inch sanitary sewer deemed to be
undependable.
2. Town will cooperate with District in pursuing the replacement of the existing
6-inch sanitary sewer.
3. Town will maintain the existing 6-inch sanitary sewer until the replacement
sewer is completed.
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2 ATTACHMENT 2
VARNI'S RESPONSIBILITIES:
1. Prior to the issuance of a certificate of occupancy by the Town, Varni will pay
the District sewer capacity and connection fees of approximately $6,953.39.
2. Varni will diligently assist the Town and District in the sewer replacement
project, including the granting of easements and right-of-way as required at no cost.
3. Varni will pay for 50 percent of the sewer rehabilitation cost, not to exceed
$30,000.
PAYMENT SCHEDULE:
1. Before occupancy of the Building or at the time of award of the construction
contract by the District which ever comes first, Varni will pay the District $30,000
or provide a letter of credit. Award of the construction contract is planned for
November, 1991, or in April, 1992, if seasonal weather conditions or other problems
make delay necessary.
2. Upon completion of project and acceptance by the District, total costs will be
determined and a statement of final accounting provided. Varni's share of total
project costs will not exceed $30,000.
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WARRANTIES:
1. Varni acknowledges that this agreement and the agreement between the Town
and the District are in response to his disputed claim under the 1979
agreement between Green Valley and the Town of Los Gatos to the right to
connect to the sewer system. Varni warrants and agrees that these
agreements are completely performed and the Town is discharged of any
continuing obligations under the 1979 agreement. Varni warrants that he has
the right, power and authority to do so and hereby waives any and all rights
he, or Green Valley or Guadalupe Rubbish Disposal Company, may have
under the 1979 agreement, in consideration for the obligations undertaken in
this agreement.
IN WITNESS WHEREOF, the parties have executed this agreement, the day
and year first hereinabove written.
APPROVED AS TO FORM: TOWN OF LOS GATOS:
KATHERINE ANDERTON CLERK
TOWN ATTORNEY
P.O. Box 949
Los Gatos, CA 95031
PROPERTY OWNER:
DENNIS VARNI
718 University Avenue
Los Gatos, CA 95030
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AGREEMENT RELATING TO REHABILITATION
OF SANITARY SEWERS TO SERVE
718 UNIVERSITY AVENUE, LOS GATOS
This agreement is made and entered into this day of
, 1991, 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 District and the Town have determined that a 6-inch
sanitary sewer requires rehabilitation/replacement before it can
be used to convey sewage from an office/commercial development
under construction at 718 University Avenue.
B. It is in the public interest to improve this 6-inch
sewer because it will avoid potential long-term maintenance
problems for the district frequently associated with private
laterals which rely on a pumping system, the only alternative to
serve this new development. This sewer is an important element
in the public sewer system because of the service it provides to
the public park. Rehabilitation/replacement will also eliminate
maintenance problems which have threatened Los Gatos Creek in the
vicinity of this sewer.
C. The property owner and developer of the 718 University
Avenue project, Dennis Varni, will enter into an agreement with
the Town to contribute 50% of the rehabilitation cost of the
sewer, up to a maximum of $30,000.
D. The project cost, consisting of design, geotechnical
investigation, permit fees, construction, administration,
inspection, right -of -way -documentation and related miscellaneous
items has been estimated at $60,000.
IT IS THEREFORE AGREED AS FOLLOWS:
DISTRICT RESPONSIBILITIES:
1. District will engage the services of an engineer and
geotechnical consultant to design the sewer. District will
review the design and prepare construction documents for public
bid.
2. District will secure the necessary permits from
agencies, i.e., Santa Clara Valley Water District and State
Department of Fish and Game.
3. District will prepare sewer easements and other right-
of-way documents, and have recorded documentation that the sewer
is a public sewer.
ATTACHMENT 3
4. District will solicit construction bids and award a
contract for the project.
5. District will administer, inspect and finalize the
construction project.
6. District will contribute 25% of the project funding
based on a maximum project cost of $60,000. District will pay
50% of project cost in excess of $60,000.
TOWN RESPONSIBILITIES:
1. Town will enter into an agreement with Dennis Varni for
50% recovery of project costs up to $30,000, and payment of all
connection fees to the district.
2. Town will assist the District in securing permits,
preparing right-of-way and ownership documents, performing design
review and coordination with Town departments and citizen
committees.
3. Town will contribute 25% of the project funding based on
a maximum project cost of $60,000. Town will pay 50% of project
cost in excess of $60,000.
WORK SCHEDULE:
The District and the Town shall diligently pursue
responsibilities pursuant to the following schedule:
1. Geotechnical investigation and design will be
in August and September 1991.
their
performed
2. Application for permits will be made and right-of-way
issues will be resolved in September and October 1991.
3. Construction will be performed in November and December
1991. In the event that seasonal weather conditions preclude
construction, the project will be completed by June 30, 1992.
FUNDING SCHEDULE:
1. District will advance funds for the geotechnical
investigation, design, permit fees, right-of-way issues, design
review and incidental administration costs.
2. At the time of award of contract, District will invoice
developer and Town for their share of contract bid price and
related project costs to date.
3. Upon project completion and acceptance, remaining
project costs will be invoiced.
IN WITNESS WHEREOF, the parties have executed this agreement
the day and year first hereinabove written.
APPROVED AS TO FORM: TOWN OF LOS GATOS
TOWN ATTORNEY
APPROVED AS TO FORM:
DISTRICT COUNSEL
CLERK
P.O. Box 949
Los Gatos, CA 95031
DISTRICT
Chairperson, Board of
Title: Directors of West Valley
Sanitation District
100 East Sunnyoaks Avenue
Campbell, CA 95008
Telephone No:(408) 378-2407
TO:
FROM:
DATE:
TOWN CLERK
BUILDING DEPARTMENT
SEPTEMBER 10, 1991
COUNCIL AGENDA: SEPTEMBER 3, 1991
COUNCIL ITEM: NO. #21
DOCUMENT NAME:
(2) AGREEMENTS
1. AGREEMENT RELATING TO REPLACEMENT OF SANITARY SEWERS TO SERVE
UNIVERSITY AVENUE, LOS GATOS, CALIFORNIA
2. AGREEMENT RELATING TO REHABILITATION OF SANITARY SEWERS TO
SERVE 718 UNIVERSITY AVENUE, LOS GATOS
DIRECTION: RETURN (2) FULLY EXECUTED COPIES TO BUILDING DEPARTMENT FOR OUR
FILES AND FOR TRANSMITTAL PURPOSES.
RESOLUTION 1991-195
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO ENTER INTO
AN AGREEMENT FOR SANITARY SEWER IMPROVEMENTS
WHEREAS, the health, safety, and welfare of the citizens of Los Gatos is of utmost
importance.
WHEREAS, it is in the public interest to improve this sewer line because it will avoid
potential long term maintenance and health problems.
WHEREAS, the proposed work is the best alternative and provides service to the
public parks.
BE IT RESOLVED, the Town Council authorizes the Town Manager to enter into
agreements with the West Valley Sanitary District and Dennis Varni as appropriate to
protect the public interest.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 3rd day of September, 1991, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Eric D. Carlson
NAYS: None
ABSENT: Mayor Brent N. Ventura
ABSTAIN: None
SIGNED: s/s Eric D. Carlson
VICE -MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'1'1kST:
s/s Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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RESOLUTION 1991-195
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO ENTER INTO
AN AGREEMENT FOR SANITARY SEWER IMPROVEMENTS
WHEREAS, the health, safety, and welfare of the citizens of Los Gatos is of utmost
importance.
WHEREAS, it is in the public interest to improve this sewer line because it will avoid
potential long term maintenance and health problems.
WHEREAS, the proposed work is the best alternative and provides service to the
public parks.
BE IT RESOLVED, the Town Council authorizes the Town Manager to enter into
agreements with the West Valley Sanitary District and Dennis Varni as appropriate to
protect the public interest.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 3rd day of September, 1991, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Eric D. Carlson
NAYS: None
ABSENT: Mayor Brent N. Ventura
ABSTAIN: None
SIGNED: s/s Eric D. Carlson
VICE -MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'F1'BST:
s/s Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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RESOLUTION 1991-195
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO ENTER INTO
AN AGREEMENT FOR SANITARY SEWER IMPROVEMENTS
WHEREAS, the health, safety, and welfare of the citizens of Los Gatos is of utmost
importance.
WHEREAS, it is in the public interest to improve this sewer line because it will avoid
potential long term maintenance and health problems.
WHEREAS, the proposed work is the best alternative and provides service to the
public parks.
BE IT RESOLVED, the Town Council authorizes the Town Manager to enter into
agreements with the West Valley Sanitary District and Dennis Varni as appropriate to
protect the public interest.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 3rd day of September, 1991, by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Eric D. Carlson
NAYS: None
ABSENT: Mayor Brent N. Ventura
ABSTAIN: None
SIGNED: s/s Eric D. Carlson
VICE -MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A'1'I'BST:
s/s Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
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September 3, 1991
Los Gatos, California
SEWER IMPROVEMENTS/OAK MEADOW PARK/VARNI/RESOLUTION 1991-195
WEST VALLEY SANITARY DISTRICT
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-195
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO ENTER INTO AN AGREEMENT FOR SANITARY SEWER IMPROVEMENTS.
Carried by a vote of 3 ayes. Mayor Ventura and Mrs. Benjamin absent.
RENT MEDIATION PROGRAM/INFORMATION AND REFERRAL SERVICES
AGREEMENT/RESOLUTION 1991-196
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-196
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AMENDMENT TO AGREEMENT WITH INFORMATION AND
REFERRAL SERVICES, INC. FOR IMPLEMENTATION OF THE RENT MEDIATION
PROGRAM, Carried by a vote of 3 ayes. Mayor Ventura and Mrs. Benjamin absent.
NONPROFIT GRANTEES/AGREEMENTS/EXECUTION/RESOLUTION 1991-197
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-197
entitled, RESOLUTION OF THE TOWN OF LOS GATO_S AUTHORIZING THE TOWN
MANAGER TO EXECUTE AGREEMENTS WITH FY 1991-92 NONPROFIT GRANTEES.
Carried by a vote of 3 ayes. Mayor Ventura and Mrs. Benjamin absent.
CANINE SERVICES/LAW ENFORCEMENT/SAN JOSE/RESOLUTION 1991-198
Motion by Mr. Blanton, seconded by Mr. Attaway, that Council adopt Resolution 1991-198
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE CHIEF OF
POLICE TO EXECUTE AN AGREEMENT WITH THE CITY OF SAN JOSE TO PROVIDE
LOS GATOS POLICE ACCESS TO CANINE SERVICES FOR OFFICIAL LAW
ENFORCEMENT ACTIVITIES, Carried by a vote of 3 ayes. Mayor Ventura and Mrs.
Benjamin absent.
MINUTES OF AUGUST 19, 1991
Motion by Mr. Attaway, seconded by Mr. Blanton, that Council approve the Minutes of August
19, 1991. Carried by a vote of 3 ayes. Mayor Ventura and Mrs. Benjamin absent.
TREASURER'S REPORT/JULY 31, 1991
The Treasurer's Report was accepted and filed.
SOLID WASTE MANAGEMENT/DROP-OFF BOX RATES/RESOLUTION 1991-199
Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1991-199
entitled, RESOLUTION OF THE TOWN OF LOS GATOS MODIFYING RATES FOR SOLID
WASTE MANAGEMENT SERVICES, which adopts Attachment 2, Exhibit A, establishing revised
solid waste rates for the drop-off box sector effective October 1, 1991. Rates to include refuse
collection and solid waste management administrative services. Carried by a vote of 3 ayes.
Mayor Ventura and Mrs. Benjamin absent.
TC:D1:MM090391
3