22 Staff Report - West Valley Sanitation District
DATE: TO: FROM: SUBJECT: MEETING DATE: 6121104 ITEM NO. cd-COUNCIL AGENDA REPORT JCNE 16, 2004 MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER AGREEMENT WITH WEST VALLEY SANITATION
DISTRICT ADOPT RESOLUTION APPROVING CONTINUATION AGREEMENT AND AMENDMENT NO.3 TO THE AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY SANITATION DISTRICT TO JUNE 30, 2005 TO ALLOW
FORTHE DEVELOPMENTAND IMPLEMENTATION OF A TRANSITION PLAN TO TRANSFER MAINTENANCE RESPONSIBILITIES FOR THE LOS GATOS SEWER COLLECTION SYSTEM FROM THE TOWN OF LOS GATOS TO WEST· VALLEY
SANITATION DISTRICT RECOMMENDATION: Adopt resolution approving Continuation Agreement and Amendment No.3 to the agreement between the Town of Los Gatos and the West Valley Sanitation
District to June 30, 2005 to allow for the development and implementation ofa transition plan to transfer maintenance responsibilities for the Los Gatos sewer collection system from
the Town of Los Gatos to West Valley Sanitation District (Attachment 1). BACKGROUND: On November 4,2002, the Town Council authorized the Town Manager to negotiate and execute an extension
to the current agreement with West Valley Sanitation District to June 30, 2004. At that time the Town of Los Gatos and West Valley Sanitation District jointly agreed to re-evaluate the
current arrangement between the agencies and engaged Brown and Caldwell, Consulting Engineers to prepare a report on the current practices and cost of service. On June 7, 2004, the Town
Council directed staff to pursue the transfer of maintenance responsibilities for the Los Gatos sewer collection system and to bring back to the Council an extension to the agiieem.t
for a period ofone year to allow for and implementation z: u-J&. tc. PREPARED BY: J HN E. CURTIS PAMELA JACOBS . irector of Parks
"and Public Works Assistant Town Manager Reviewed by: Town Manager --11L..Attomey __Clerk " Finance Community Development 6117/04 7:38 am Reformatted:
5/30/02 N:\B&E\COUNCIL REPORTS\WYSD.agreement.62I 0+ \\"pd
PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT JUNE 16, 2004 ofa transition plan from the Town ofLos Gatos (Town) to West Valley Sanitation District
(District), DISCUSSION: This Continuation Agreement extends the Agreement for a period of one year, to June 30, 2005. and requires the Town and the District to develop and implement
a transition plan for the transfer of maintenance responsibilities from the Town to the District. During the one-year extension of the Agreement, all terms and provisions of the Agreement
and previous Amendments remain in full force and effect. The transition plan to be developed between the Town and the District will include, but not be limited to, the following elements:
' • A Communication Plan that includes press releases to local media, written communications to all Town sewer users (via both mail and door hangers) and at least one public information
meeting to inform all interested parties about the transfer of sewer service responsibilities. The Communication Plan will also include communication procedures to ensure seamless service
delivery to customers subsequent to the transfer. • An Information Transfer Plan that ensures all relevant Town knowledge and local expertise of the sewer system is transferred to the
District. The' infortnation will include all sev,'er maintenance records and service requests for a minimum of24 months prior to the transfer, • An Assets Transfer Plan including an
analysis by an independent public financial advisor selected by both parties to determine the current value of sewer systems assets and plan to negotiate the transfer or disposition
of those assets. • Performance Commitments to ensure that Los Gatos customers willcontinue to receive a comparable level of service from the District as they do currently from the Town.
The commitments will be in the areas ofresponse time. quality of service. and customer service. The Town and District will collaborate on the details to be included in each of the above
elements. to provide a specific and comprehensive game plan for the tra.nsfer. The Town and the District may agree to include additional elements as the Transition Plan is developed.
Within 90 days of July 1. 2004, the staff will bring forward to the Town Council a schedule for implementing the Transition Plan and additional details regarding the individual elements.
PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: AGREEMENT WITH WEST VALLEY SANITATION DISTRICT JUNE 16, 2004 CONCLUSION: The Town Council has determined that it is in the best interest of the
Los Gatos community to transfer the responsibility for maintenance of the Los Gatos sewer system to. the District. The Continuation Agreement and Amendment No. 3 allows the Town and
District to continue providing services to the community under the current arrangement for a period of one year during which time a Transition Plan is developed'and implemented. Staffrecommends
that Council adopt the resolution approving the Continuation Agreement and Amendment No.3. ENVIRONMENTAL ASSESSMENT: This is not a project as de.fined under CEQA, thus no further action
is required. FISCAL IMPACT: The fiscal impact ofthe transfer of maintenance responsibilities from the Town to the District is yet to be determined; however, it is expected that there
will be some reimbursement to the Town forthe sewer assets and that there will be costs associated with the loss of the administrative fee received from the District, and potentially
with the provision of non-sewer related services currently provided by the sewer crew. Attachments: 1. Resolution Approving Continuation Agreement and Amendment No, 3 Distribution: Robert
R. Reid, District Manager, West Valley Sanitation District, 100 East Sunnyoaks Avenue. Campbell, CA 95008-6608 "
RESOLUTION NO. RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING A CONTINUATION AGREEMENT AND AMENDMENT NO.3 TO THE AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY
SANITATION DISTRICT TO JUNE 30, 2005 TO ALLOW FOR THE DEVELOPMENT AND IMPLEMENTATION OF A TRANSITION PLAN TO TRANSFER MAINTENANCE RESPONSIBILITIES FOR THE LOS GATOS SEWER COLLECTION
SYSTEM FROM THE TOWN OF LOS GATOS TO WEST VALLEY SANITATION DISTRICT WHEREAS, on May 19,1977 Town entered into an agreementwith District entitled "District 4 -Los Gatos 1977 Sewer �
� ( herein referred to as "Agreement" ); and WHEREAS, on June 13,2001 Town and District entered into an amendment to the Agreement to continue said Agreement for a period not to exceed
three years; and WHEREAS, said Agreement and all amendments will terminate on June 30, 2004; and WHEREAS, Town and District have analyzed current and projected costs of sewer service
and the impacts ofnew regulations on the future operations and management of the sanitary sewer system; and WHEREAS, Town and District desire to transfer all current and future ownership
and associated operation and maintenance responsibilities ofthe sanitary sewer system within the Town's jurisdiction to the District. RESOLVED, that the Town Council of the Town of Los
Gatos hereby approve the Continuation Agreement and Amendment No. 3 to Sewer Agreement Between the Town of Los Gatos and West Valley Sanitation District, attached hereto as Exhibit "A"
and incorporated herein by this reference, and authorize the Town Manager to execute the and Amendment. PASSED AND ADOPTED at a meeting of the Town Council of the Town
ofLos Gatos, California, held on the .day of , 2004 by the following vote: COUNCIL MEMBERS: AYES: 1 ATTACHMENT 1
NAYS: ABSENT: ABSTAIN: SIGNED:MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ." 2
CONTINUATION AGREEMENT AND AMENDMENT NO.3 TO SEWER AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND WEST VALLEY SANITATION DISTRICT THIS CONTINUATION AGREEMENT is made and entered into this
day of _____,2004 by and between the Town of Los Gatos (hereinafter"Town" ) and West Valley Sanitation District of Santa Clara County ( hereinafter "District" ). RECITALS WHEREAS, on
May 19, 1977 Town entered into an agreement with District entitled "District 4 -Los Gatos 1977 Sewer Agreement" ( herein referred to as "Agreement"'); and WHEREAS, on June 13,2001 Town
and District entered into an amendment to the Agreement to continue said Agreement for a period not to exceed three years; and WHEREAS, said Agreement and all amendments will terminate
on June 30, 2004; and WHEREAS, Town and District have analyzed current and projected costs of sewer service and the impacts of new regulations on the future operations and management
of the sanitary sewer system; and WHEREAS, Town and District desire to transfer all current and future ownership and associated operation and maintenance responsibilities of the sanitary
sewer system within the Town's jurisdiction to the District; 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: 1. All of the terms and provisions ofthe Agreement and all subsequent amendments remain in full force and effect for a period not to
exceed one year from the date of this Continuation Agreement. 2. During the period of this Agreement a Transition Plan will be implemented to include the following elements: A. A Communication
Plan that includes press releases to local media, written communications to all Town sewer users (via both mail and door hangers) and at least one public information meeting to inform
all interested parties about the transfer of sewer service responsibilities. The Communication Plan will also include communication procedures to ensure seamless service delivery to
customers subsequent to the transfer. EXHIBIT A
B. An Information Transfer Plan that ensures all relevant Town knowledge and local expertise of the sewer system is transfetTed to the District. The information \vi 11 include all sewer
maintenance records and service requests for a minimum of24 months prior to the transfer. C. An Assets Transfer Plan including an analysis by an independent public financial advisor
selected by both parties tQ determine the cutTent value of sewer systems assets and a plan to negotiate the transfer or disposition of those assets. D. Performance Commitments to ensure
that Los Gatos customers will continue to receive a comparable level of service from the District as they do currently from the Town. These commitments will be in the areas of response
time, quality of service, and customer service. 3. Any extraordinary costs of the aforesaid Transition Plan elements beyond normal operati0nal responsibilities will be borne soldy by
the District. 4. It is further agreed that it is the intention of the Town and District to accomplish the transfer of responsibilities and assets as. expeditiously possible. Da.te
certain milestones for each of the Transition Plan elements will be set not later than October I, 2004. 5. Upon completion of all Transition Plan elements and paymentof all moneys owing
for transfer of ownership interests, the Town will relinquish all ownership rights and interests in the sanitary sewer system to the District and this Agreement will be null and void.
WITNESS THE EXECUTION HEREOF the day and year first hereinabove written. APPROVED AS TO FORM: TOWN ATTORNEY 2 TOWN OF LOS GATOS By: _ Title:
DISTRICT COUNSEL 3 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA CO. By: _' _ Title: --'---"--