West Valley Clean Water Program Budget and Program Services Agreement�oWN 0, MEETING DATE: 05/07/12
ITEM NO:
10
COUNCIL AGENDA REPORT
Qs GASH
DATE: APRIL 27, 2012
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
TITLE WEST VALLEY CLEAN WATER PROGRAM BUDGET AND PROGRAM
SERVICES AGREEMENT
A. APPROVE THE FY 2012/13 WEST VALLEY CLEAN WATER
PROGRAM BUDGET.
B. AUTHORIZE THE TOWN MANAGER TO EXECUTE AN AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND THE WEST VALLEY
SANITATION DISTRICT TO COLLECT PROGRAM RELATED FEES ON
BEHALF OF THE TOWN.
C. AUTHORIZE THE TOWN MANAGER TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING TO ALLOW THE WEST
VALLEY CLEAN WATER PROGRAM TO PROVIDE PROGRAM
SERVICES FOR THE TOWN.
RECOMMENDATION
1. Approve the FY 2012/13 West Valley Clean Water Program Budget.
2. Authorize the Town Manager to execute an agreement between the Town of Los Gatos and
the West Valley Sanitation District to collect program related fees on behalf of the Town.
3. Authorize the Town Manager to enter into a Memorandum of Understanding to allow the
West Valley Clean Water Program to provide program services for the Town.
BACKGROUND
Locally, there are four programs that manage the prevention of urban runoff pollution from
entering the creeks that lead to the San Francisco Bay: the Santa Clara Valley Urban Runoff
Pollution Prevention Program (SCVURPPP), the West Valley Sanitation District (WVSD), the
West Valley Clean Water Program (WVCWP), and the Town- managed Non -Point Source
Discharge Elimination Program ( NPDES). These programs perform various functions required
under the Clean Water Act, Environmental Protection Agency regulations and respective NPDES
permits.
PREPARED BY : TODD CAPURSO
Director of Parks and Public Works
Reviewed by: _Assistant Town Manager Town Attorney
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N:\PPW\ MANAGEMENT \COUNCIL \COUNCIL REPORTS\2012 Repoits\May 7 \WVCWP \WVCWP FY 12 -13 Budget and Program
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PAGE 2
APRIL 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND
PROGRAM SERVICES AGREEMENT
BACKGROUND (cont'd):
WVCWP is a consolidated local program currently managed by WVSD for the Town and the
cities of Campbell, Monte Sereno and Saratoga. These four municipalities entered into an
agreement with WVSD in September 1994 to provide consolidated program services. This
agreement has been in place since that time and will terminate on June 30, 2012. WVCWP's
purpose includes coordinating efforts of other agencies (County Fire District and County
Environmental Health Department) that perform NPDES inspection activities for the Town,
conducting public education activities and streamlining implementation of the current NPDES
permit, and writing and submitting the Annual Report and Work Plan for the four municipalities
to the State Regional Water Quality Control Board. Town staff gathers data and provides
NDPES related activities to WVCWP for the Annual Report. WVCWP offers a unified, stronger
voice to represent the interests of West Valley cities at the countywide program level and with
regional bodies. Additionally, it has proven to be more cost - effective and time- efficient for the
West Valley cities to manage this program and address NPDES issues through a single point of
contact.
In October 2009, the Regional Water Quality Control Board issued a permit called the Municipal
Regional Stormwater Permit, which is in effect for a period of five years. Over the last several
years, Town staff (Parks and Public Works and Community Development) has taken on
increasingly larger administrative responsibilities for monitoring the regulatory components of
this permit. Costs for permit implementation continue to impact Town resources, as evident by
new regulations, such as the development of a trash capture device plan and the creation of a
short -term trash reduction plan. These are two examples of new regulations included in the
current permit that have created additional burdens on the Town that have resulted in requiring
additional staff oversight and have increased program administration costs. These initiatives will
also create longer -term maintenance and operations obligations for the Town. These obligations
have yet to be fully defined in terms of their scope or financial requirements.
The original agreement between the four West Valley municipalities and the WVSD addresses
both the collection of storm water fees through the property tax rolls and the operations of the
program. As such, WVSD is currently responsible for the management of the program. With
the expiration of the current agreement approaching, all agencies involved have agreed to re -visit
the management of the program and have had discussions over the past year regarding potential
changes to the management of the program as well as how the agreed upon changes could be
implemented as part of a new contractual relationship.
PAGE 3
APRIL 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND
PROGRAM SERVICES AGREEMENT
DISCUSSION:
After several discussions involving staff from all agencies, it was determined that the
recommended course of action would be to move forward with two separate agreements.
The first of these agreements would retain WVSD as the fiscal agent for the program and allow
them to continue to collect revenue on behalf of the Town through property tax rolls. The
second agreement, a Memorandum of Understanding (MOU), would allow the four West Valley
cities to take a more active role in the management of the WVCWP but would still allow for a
consolidated approach. Before describing each of the newly proposed agreements in greater
detail, the WVCWD FY 2012/13 Operating Budget should also be considered. As with previous
agreements, WVCWP would continue to prepare and propose operating budgets similar to how it
has in the past. The proposed operating budget for FY 2012/13 and both of the proposed
agreements are described in more detail below.
Proposed FY 12/13 WVCWP Budget
Each year, the four municipalities participating in the WVCWP and the West Valley Sanitation
District cooperatively prepare an outline of the Annual Work Plan for WVCWP and the
associated operating budget for approval prior to the establishment of the annual user fees, and
prior to the District transmitting those fees to the County for collection from property tax rolls.
The proposed budget is then presented to the four municipalities individually for approval. The
proposed budget is ultimately approved and adopted by the WVSD Board of Directors.
The proposed FY 2012/13 WVCWP budget shows increases in the areas of administration and
permit compliance management. The administrative increases are a result of changes in
personnel costs and expenses associated with an anticipated office relocation. The additional
permit compliance issues require services of a consultant, primarily for the development of a
long -term trash reduction plan. This comprehensive plan requires specific expertise and
knowledge, which the WVCWP or municipal staffs cannot provide.
Additionally, permit fees — attributed to both SCVURPPP and the State — have risen by more
than 20% over the last four years and now stand at $263,000 annually for the program.
The WVCWP is also planning to relocate its offices. The program has been housed by the City
of Monte Sereno for several years at a nominal rate. The increase in this budget line item
accounts for increased fees in rental office space. In order to keep costs minimal, the program
would prefer to relocate to a shared office space within one of the municipalities' buildings.
Although a new office location has not yet been determined, an office relocation is anticipated to
take place sometime during the 2012/13 fiscal year.
PAGE 4
APRIL 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND
PROGRAM SERVICES AGREEMENT
DISCUSSION (cont'd):
Agreement with WVSD to Collect Fees on BehalLof the Town
The WVSD already collects storm sewer revenue on behalf of Campbell, Los Gatos, and Monte
Sereno — all under separate agreements. These agreements are all expiring on June 30, 2012.
The property tax revenue collected from properties located in Los Gatos is approximately
$332,000 annually. Any proposed increase in this fee could trigger requirements of Proposition
218 and would be subject to a vote or protest proceeding. The proposed new agreement between
the Town and WVSD will allow the District to continue to collect storm water program revenue
on behalf of the Town.
Under this proposed new agreement, WVSD will turn over the property assessment fees
collected to the Town, and will no longer retain these revenues in a fund balance account as it
has done under the existing agreement. WVSD will then invoice the Town twice a fiscal year for
program services; in July, and then in January of the following year (through the proposed
MOU). This agreement is being proposed as a twenty -year agreement and would remain in
effect through June 30, 2032, unless terminated earlier under the provisions of the agreement.
Additionally, the Town will receive a one -time fund balance transfer of $170,000 revenue from
WVSD. These funds have been collected through the tax rolls by WVSD and represent
approximately one round of semi- annual tax revenues. The fund balance typically remains at
approximately this level throughout the year, but can fluctuate due to the timing of expenses and
the semi- annual tax collection periods. This money must be used towards the Town - managed
Non -Point Source NPDES program which not only will fund the Town's portion of the
WVCWP, but also funds street sweeping services throughout the Town.
West Valley Clean Water Program - MOU
The second agreement being proposed is a Memorandum of Understanding (MOU) that would
be entered into jointly by the Town, the cities of Campbell, Monte Sereno, and Saratoga, and the
WVSD. This MOU would then allow the four West Valley cities to assume a more active role in
the management of the program, while the WVSD moves into a fiscal agent role, as defined by
the financial agreement above.
It is anticipated that under this new MOU, the West Valley communities will be better positioned
to address permitting requirements as they occur and take a greater management role in the
preparation of the annual report and setting priorities for the program. The proposed MOU is
also proposed as a twenty -year agreement, terminating on June 30, 2032, unless terminated
earlier under the provisions of the agreement.
PAGE 5
APRIL 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND
PROGRAM SERVICES AGREEMENT
DISCUSSION (cont'ah
Storm Sewer Cleaning Modi cations
Storm sewer cleaning maintenance and operations were previously addressed as part of the
WVCWD agreement between WVSD and the four cities. Under the proposed MOU, storm
sewer maintenance is not specifically addressed. Should the Town wish to continue using the
services of the WVSD, a separate agreement between the Town and WVSD would be required.
The costs associated with this activity have historically been included as part of the WVCWP
program budget. It is anticipated that the cost and scope of work for this service will remain
relatively constant and are estimated to be $26,000 annually. However, the Town is not obligated
to have WVSD perform these services and may elect to perform all or a portion of these services
using either in -house or contractual services.
Future Anticipated Changes
At this time, it is unknown what regulations and requirements will be added during the next
permit cycle because the Regional Water Quality Control Board establishes these regulations.
The current permit cycle will end on November 30, 2014. During the current permit cycle, it has
been demonstrated that the amount of compliance issues are trending upwards, which means
additional administrative costs and personnel time will be needed in order to manage the
stormwater compliance issues. This creates uncertainty in the long term because while the
revenues received through the collection of resident parcel tax fees remains constant,
administrative costs and permitting fees continue to increase at a relatively high rate.
It is also difficult to forecast the specific financial impacts associated with future permit revisions
because some permit regulations are closely associated with the number of private development
projects. Additionally, the new permit regulations are generally adopted without implementation
costs associated with them, therefore municipalities are unaware of the large -scale financial
impacts during the permit review process.
CONCLUSION
Staff recommends that the Town Council approve the FY 2012/13 West Valley Clean Water
Program Budget. It is also recommended that the Town Council authorize the Town Manager to
enter into an agreement with the West Valley Sanitation District to collect program related fees
on behalf of the Town. Staff further recommends that the Town Council authorize the Town
Manager to enter into a Memorandum of Understanding to allow the West Valley Clean Water
Program to provide program services for the Town.
PAGE 6
APRIL 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: WEST VALLEY CLEAN WATER PROGRAM BUDGET AND
PROGRAM SERVICES AGREEMENT
ENVIRONMENTAL ASSESSMENT
No environmental assessment needed. Neither the work plan nor the fees are considered a
project under CEQA.
FISCAL IMPACT
The approval of the WVCWP operating budget and the MOU will allow the program to continue
to operate through fiscal year 2012/13 and beyond. Approval of the agreement with the West
Valley Sanitation District will allow the District to continue to collect revenue on behalf of the
Town in the amount of approximately $332,000 to fund the Town's portion of the WVCWP
operating budget and other associated NDPES related functions.
If approved by Council, additional details regarding the Town's Non -Point Source Program fund
will be presented to Council as part of the Town's Proposed FY 2012/13 Operating Budget.
Attachments:
1. Proposed West Valley Clean Water Program Budget for FY 2012/13
2, Proposed Storm Fee Agreement between the Town of Los Gatos and West Valley Sanitation
District
3. Proposed Memorandum of Understanding for the West Valley Clean Water Program
Distribution:
Bob Reid, Manager, West Valley Sanitation District, 100 East Sunnyoaks Avenue, Campbell,
CA 95008
Kelly Carroll, Program Manager, West Valley Clean Water Program, 18041 Saratoga -Los Gatos
Road, Monte Sereno, CA 95030 -4299
Attachment 1
West Valley Clean Water Program
Campbell - Los Gatos - Monte Sereno - Saratoga
West Va I I ey
Clean Mater Program
Budget
Fiscal Year 2012 -2013
WV Committee Approved: _3/20.12
18041 Saratoga Los Gatos Road, Monte Sereno, CA 95030
final: March 20, 2012
rev draft: Feb 8, 2012
1 st draft: Jan 17, 2012
West Valley Clean Water Program Budget
Contents
I. Budget Line Index
II. Budget: WVCWP Year over Year Comparision over 5yr NPDES
Comparison MRP Term
Line Item Descriptions
III. Municipal Detail: WVCWP
Stormwater Cost Allocations
Current Year Cost Allocation
by Individual WV Agency
4
5
IV. Municipal Detail: WVCWP Use of Funds Summary 6
Stormwater Use of Funds
final: March 20, 2012
rev draft: Feb 8, 2012
1st draft: Jan 17, 2012
West Valley Clean Water Program Budget
Budget Line Index
Budget Line Description
1. NPDES Permit Compliance:
Labor — Payroll & Overhead
A. Labor, Payroll Staff on Payroll: FT and PT
B. Labor, Payroll Expenses ER portion of Taxes, SDI, PERS, Worker's Comp
2. NPDES Permit Compliance:
Labor- Non - payroll; Special Project/ Tasks
A. Labor, Temp /Services
Non- payroll, part- time, and temp staffing
B. Labor, Technical Assistance
Contract Staff for technical, professional assistance
3. NPDES Permit Compliance:
- Database Management Program /Software Mgmt
Programs
- Document Management/ Storage
A. Office Supplies
• Forms and Template Management
- Project Management
A, Events/ Projects /Brochures & Promotional
- Cleanup/ Hot Spots materials and supplies
Items
• Community Events, "Creek Keepers" Program
- Equipment Replacement (grabbers, pumps, mats)
C. Capital &Computer Costs
- Logo -wear
- Material Distribution
D. Fiscal Agent & Overhead Contract /Fee*
• Outreach &.Partnerships (Green Gardener, POND, local school,
(Formerly Direct Cost Line 6D for tax roll fees and contracts
retailers)
- Promo Items
- Reprints, brochures -& -self- print
B. Staff Training
- Fees
- Guest speakers
- Sponsor /HostWkshps
- .Sponsorships (WMI, Creek Coalition, Green Gardener, etc);
C. Outreach Distribution
• Domain name, hosting fee, email service
- Medla /Website Maint /Support
Newspaper & Publication Advertising
4. Administration: Occupancy/
Facility Expenses
A. Office Rent
Rental/ Lease of office space
B. Building Maintenance /Repair
Alteration and /or Maint for office space
C. Utilities
Elec, Gas, Tel, Fax, Internet
S. Administration: Operations
A. Office Supplies
Office Supplies, cleaning supplies, paper goods; Ink/Toner
Cartridges; Report production, binders, cds
B. Operating Expenses
Meeting Expenses, Manuals, Subscriptions, Auto Maint, Hiring Ads;
Staff Transition /Development; Software,
Computer Support/Equip Maint/Repair
C. Capital &Computer Costs
Purchase of office furniture, equipment (Computer, Printer, Scanner,
phones)
D. Fiscal Agent & Overhead Contract /Fee*
Fee for service of processing expenses and holding employee
(Formerly Direct Cost Line 6D for tax roll fees and contracts
overhead charges);
6. NPDES Permit Compliance:
Contract Services, Permits, Fees
[individual assesments]
A. Industrial /Commercial Inspection Program 1. SCCFD Inspection @ Comm /Ind Facilities (Campbell, Los Gatos &
Saratoga only)
2. DEH Restaurant Inspections - contract. management &
coordinated efforts (no fees at this time)
B. Sta7n Drain Cleaning & 5)stem Management* FY12 -13: This item Is moved to Individual Agency Budget
(Use this Line thru FYII -12)
C. Permit Fees & SCV Program Management 1. SCVURPPP Assessment
2. State WDA -NPDES Permit Fee
D. WVSD Overhead & Pass Thru Fees* Tax roll fees and overhead charge
(Use this Line thru FYI1 -12; see 50)
7. Municipal Expenditures Budget Tracking by request only: Related Municipal Expenditures on
stormwater related tasks, Including but not limited to:
• external contracts (le Administrative Consultants)
- street sweeping
- storm /Flooding response
- storm drain malnt
- struct bmp O&M Inspections
Page 3
final: March 20, 2012
rev draft: Feb 8, 2012
1st draft; Jan 17, 2012
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Attachment 2
AMENDED AGREEMENT BETWEEEN THE TOWN OF LOS GATOS
AND WEST VALLEY SANITATION DISTRICT
REGARDING CONTINUATION OF A STORM
WATER MANAGEMENT PROGRAM
This Amended Agreement, made and entered into this _day of _, 2012, 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, on July 1, 1992 Town entered into an agreement with District entitled
"Agreement Between the Town of Los Gatos and West Valley Sanitation District Regarding
Implementation of a Storm Water Management Program "; and
WHEREAS, said Agreement will terminate on June 30, 2012; and
WHEREAS, Town, along with twelve other cities, the County of Santa Clara, and the
Santa Clara Valley Water District, and all other cities and counties in the region, are subject to
continuing regulations under a series of permits issued by the San Francisco Bay Regional Water
Quality Control Board; and
WHEREAS, District's boundaries encompass the entire Town and therefore Town's
storm drainage system is entirely within District's boundaries; and
WHEREAS, Town wishes to designate District as its agent to help enable Town in 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 amended agreement,
NOW, THEREFORE, for and in consideration of their mutual covenants, promises, and
obligations, Town and District do hereby agree as follows:
1
Part I — DEFINITIONS
Except where the context otherwise requires, the following definitions of this Section
shall govern the construction of this agreement:
A. Storm Drainage System shall mean any pipe, conduit, gutter, ditch, swale or outfall 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 pipes
connected to the sanitary sewer system.
B. NPDES Permit shall mean the National Pollutant Discharge Elimination System permit
(sometimes referred to as an "MS -4 Permit ") issued by the San Francisco Bay Regional Water
Quality Control Board, as authorized by the U.S. Environmental Protection Agency and the State
Water Resources Control Board, in order to promulgate certain laws and regulations for
controlling urban runoff.
C. Urban Runoff shall mean all waters within the territory of the Town resulting from
precipitation, irrigation, or any other sources whether intended or not, that flows over both
natural and manmade surfaces and reaches the storm drainage system.
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.
J. Fiscal Year shall mean the period beginning July 1 of any given year and extending through
June 30 of the following year.
K. Storm Water Management Plan shall mean a schedule of tasks and activities required by
the NPDES Permit including specific goals, objectives and milestone dates.
2
PART II — AGENCY RELATIONSHIP CONTINUED
A. Appointment of District as Town Agent:
The 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 the current NPDES permit issued to Town and as may hereafter be amended.
B. Duties of the District
The duties of the District shall be the following:
1) Upon execution of this amended agreement, the District shall take such actions as is
necessary, and is authorized by law, to maintain the existing storm drainage service charge as part
of the District's schedule of fees and charges.
2) The District shall be responsible for the assessment and collection of storm drainage
service charges from all properties situated within Town as such charges are determined necessary
by Town and District as described in Part IV of this agreement.
C. Duties Retained by the Town
The following duties are retained by the Town:
1) Participate in regional and sub regional groups, such as the Santa Clara Valley
Urban Runoff Pollution Prevention Program (SCVURPPP) and the West Valley Clean Water
Program (WVCWP) organized and authorized to develop, implement and interpret certain
requirements of the regional NPDES Permit
2) Develop and implement a storm water management plan, including all Town
functions required by the NPDES Permit, and report annually to the Regional Board.
4) Develop an annual budget each fiscal year to cover Town's estimated costs of
staying in compliance with the NPDES Permit.
3
5) Determination of all funding sources and revenues necessary to meet Town's
obligations under the provisions of the NPDES Permit including, but not limited to, storm drainage
service charges collected by District within the territory of Town.
D. Indemni
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, except for District's breach of its duties under this
Agreement.
2) 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. This indemnity shall not include any action arising out of the District's
breach of its duties under this Agreement.
3) Notwithstanding the indemnity described in subparagraph 1) above, Town agrees to
indemnify, defend 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 willful misconduct.
4) 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 TOWN
A. Additional Duties of the Town
1) The Town shall have the sole responsibility of enforcing all laws, ordinances, and
regulations regarding urban runoff within the Town, including the control of improper discharges
into the storm drainage system.
2) The Town, as a discharger, shall have the sole responsibility regarding all dealings
with the Santa Clara Valley Urban Runoff Pollution Prevention Program, the California Regional
and State Water Quality Control Boards, the U.S. Environmental Protection Agency, and all other
agencies and authorities having jurisdiction with respect to urban runoff and protection of the
Town's storm drainage system under its NPDES permit.
Part IV — FINANCIAL PROVISIONS
A. Annual Submission of Town's Estimate
No later than April 1 of each calendar year, Town shall submit, in writing, to the District its
estimate of its maintenance and operation and general administrative costs for the upcoming 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. The
Town shall also be responsible for verifying the number, size and land use of all the parcels within
its jurisdiction for the purposes of assigning the correct stormwater runoff coefficient and
corresponding storm drainage service benefit to each parcel.
B. District's Estimate
No later than January 1 St of each year, District shall estimate its own operation 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. These costs shall include updating all parcel databases with the most
current information available from the Office of the County Tax Assessor and assigning the correct
storm drainage service charge to each parcel within the Town based on the Town's verification of
size and land use.
67
C. Establishment of Storm Drainaiz Service Charge
Utilizing the two estimates described above the District Board of Directors shall, after
public hearing, establish a storm drainage service charge by resolution. Said resolution shall set
forth the specific amount of the fee, describe the services to be performed, describe the estimated
cost of the services to be performed, describe the reasonable relationship between the fee and the
service to be performed, and set forth the time of payment and manner of collection. District shall
be responsible for timely placement of duly established storm drainage service charges on its
schedule of fees forwarded to the County of Santa Clara for collection in conjunction with the
County's normal property tax collection procedures and schedule.
D. Annual Review of the Storm Drainage Service Charge
On an annual basis the District Board of Directors shall review the charges to determine
whether the amount is reasonably related to the service being provided. However, any
determination and actions necessary to increase the storm drainage service charge, including but
not limited to, public notification, voting requirements, and other legal considerations, shall be the
sole responsibility of the Town.
E. Limited Use of Funds
The revenues raised by the payment of the storm drainage service charge shall not be co-
mingled with other District funds but shall be duly remitted to the Town as provided for in
Paragraph F. Payment to District and Town. Town shall use all revenues for the perfonnance of its
duties required by the NPDES Permit and the Town's storm water management plan.
F. Payment to District and Town
Within 30 days of receipt of the revenue derived from the imposition of said charge, the
District shall remit to the Town the full amount of the revenues received less an administrative
service charge of no greater than 1.0 percent of the total amount of storm drainage service charges
assessed.
M
G. Remittance of Fund Balances
Within 60 days of execution of this agreement by both parties, the District shall remit to the
Town any and all Storm Drain Service Charge Fund Balances held by the District on behalf of the
Town minus any charges and expenses incurred by the District for stormwater program services
provided on the Town's behalf through June 30, 2012. The District shall provide appropriate
documentation to the Town to support the Fund Balance remittance. Fund Balance revenues
received by the Town shall be used solely for performance of its duties required by the NPDES
Permit and the Town's storm water management plan.
Part V — TERM OF AGREEMENT, 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,
2012, and extending to and including the 30 day of June, 2015, and is automatically renewed for
additional one (1) 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 not later than January 3l
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, 2032.
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 service. 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.
Part VI — MISCELLANEOUS PROVISIONS
A. Amendments
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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)
shall meet jointly to resolve their differences. No action or suit concerning the terms or
performance of this agreement shall be commenced, nor there be any act of rescission or notice of
termination of this agreement until the joint meeting has been held.
C. Successors and Assigns
The agreements, covenants, conditions, limitations, restrictions and undertakings contained
in 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 July 1, 2012.
Dated:
ATTEST:
Town Clerk
Dated:
TOWN OF LOS GATOS
APPROVED AS TO FORM:
Town Attorney
WEST VALLEY SANITATION DISTRICT
OF SANTA CLARA COUNTY
ATTEST:
Secretary
APPROVED AS TO FORM:
District Counsel
THIS PAGE
INTENTIONALLY
LEFT BLANK
Attachment 3
MEMORANDUM OF UNDERSTANDING
FOR
THE WEST VALLEY CLEAN WATER PROGRAM
This MEMORANDUM OF UNDERSTANDING (MOU) is made and entered into this
_day of _, 2012, by and between the cities of Campbell, Saratoga, Monte Sereno, and the
Town of Los Gatos, municipal corporations of the State of California, hereinafter collectively
referred to as "The West Valley Cities ", and the 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 ".
WHEREAS, in September, 1994, the West Valley Cities and the District entered into a
Memorandum of Understanding for Storm Water Pollution Control Coordination (the "1994
MOU "); and
WHEREAS, the coordinated storm water pollution control and management effort of the
West Valley Cities and the District is now commonly known as the West Valley Clean Water
Program (WVCWP); and
WHEREAS, the West Valley Clean Water Program has been a successful and cost-
effective means of cooperatively addressing storm water pollution control requirements and
regulations within the West Valley Cities; and
WHEREAS, the 1994 MOU, which established the basis for this multi - agency
coordination through the WVCWP, will terminate on June 30, 2012; and
WHEREAS, the West Valley Cities along with the County of Santa Clara, the Santa
Clara Valley Water District, and other cities and counties in the region, are subject to continuing
regulations for the control and management of stormwater pollution under a series of NPDES
permits issued by the San Francisco Bay Regional Water Quality Control Board (RWQCB),
most recently as set forth in a Bay Area -wide Municipal Regional Permit (MRP); and
WHEREAS, the West Valley Cities and the District wish to continue cooperating and
coordinating municipal permit compliance and storm water pollution control efforts through the
West Valley Clean Water Program.
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NOW, THEREFORE, the parties to this MOU do agree to the following:
1. Management Committee
The West Valley Cities shall establish a Management Committee comprised of a senior
level staff member from each city for purposes of overall management and coordination of the
WVCWP. Unless otherwise designated by the respective City /Town Manager, said Management
Committee representative shall be the Agency's officially designated and duly authorized Santa
Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) Management
Committee Representative. The Management Committee shall be responsible for general
oversight of the WVCWP and shall meet quarterly to review and monitor WVCWP performance,
including budgetary compliance, and progress against annual program objectives. The
Management Committee shall also be responsible for Program Administration and Personnel
oversight as more fully described in Section 4 below. Meetings shall be held quarterly, generally
in December, March, June and September, or at such other times as mutually agreed upon by the
Management Committee. All decisions of the Management Committee, including rescheduling
or cancelling of meetings, shall be by consensus or majority vote, if consensus is unable to be
reached.
2. Technical Advisory Committee and Ad -Hoc Technical Committees
The Management Committee may establish a Technical Advisory Committee and /or Ad-
Hoc Technical Committees comprised of Agency staff representatives to meet on an as- needed
basis to review program activities and assist with specific program implementation components.
3. Fiscal and Administrative Agent
The West Valley Sanitation District will serve as the fiscal and administrative agent for
the WVCWP on behalf of the participating cities. This responsibility includes processing all
payments for expenditures on behalf of the program as authorized in the annual WVCWP
budget, as more fully discussed in Section 5, Budget Development. The District shall invoice the
cities for their proportional share of program costs as set forth in Section 8, WVCWP Costs,
pursuant to the Cost Share Schedule as shown in Attachment A. The District shall also provide
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any WVCWP contract employees with salaries and benefits as recommended and approved by
the Management Committee.
4. WVCWP Program Administration and Personnel
The Management Committee may recommend contracting a WVCWP Program Manager
and any other such staff as deemed appropriate and necessary for management of the WVCWP,
The recommendations shall be made to the District which would contract with any staff as
provided for in Section 3 above. All recommendations regarding program management and
personnel shall be included as part of the annual program budget. The Management Committee
shall make recommendations to District regarding the hiring of a WVCWP Program Manager,
including compensation and benefits, and any interview process that may be required, as well as
conducting an annual performance review of the WVCWP Manager in January of each year, or
such other date as agreed upon by the members of the Management Committee. All
recommendations regarding Program Manager compensation and /or contract provisions shall be
included with the annual WVCWP budget approved by the Management Committee. The
WVCWP Program Manager shall be responsible for all other WVCWP personnel decisions as
authorized in the approved WVCWP annual program budget, subject to review by the WVCWP.
The WVCWP Program Manager is authorized to enter into agreements consistent with the
approved program budget and as approved by the Management Committee. The WVCWP
Program Manager is also authorized to approve payment of invoices on behalf the WVCWP
consistent with the approved program budget and to exercise any such other duties as may be
required to manage the WVCWP as guided by the Management Committee.
5. Budget Development
The Management Committee shall be charged with approving an annual WVCWP
budget. No later than January lst of each year, or such other date as agreed upon by the
Management Committee, the Management Committee shall provide general budget direction to
the WVCWP Program Manager for development of the upcoming Fiscal Year budget. The
WVCWP Manager will submit a proposed budget to the Management Committee prior to the
March Management Committee quarterly meeting, or at such other date as agreed upon by the
Management Committee. The Management Committee shall review the proposed budget and
3
recommend a final budget for approval by each of the WVCWP member agency's legislative
body. Each party to this MOU will be responsible for the timely coordination of any
independent agency actions related to the WVCWP budget, including but not limited to the
incorporation of WVCWP costs and revenues within the agency's own annual budget.
6. Shared Program Responsibilities
The cities acknowledge that compliance with the current Municipal Regional Permit
requires shared responsibilities on the part of the WVCWP cities and the WVCWP. The
Management Committee shall be charged with annually reviewing the allocation of these
responsibilities amongst the West Valley Cities and the District. Current WVCWP program
responsibilities are shown in Attachment B, which may be revised and amended from time to
time by the Management Committee to reflect any changes in responsibilities, including new or
revised permit compliance requirements.
7. WVCWP Offices
The WVCWP Program Manager shall be responsible for securing office space and for
ensuring payment of any reasonably necessary occupancy costs, which shall be included as part
of the annual program budget approved by the Management Committee. As necessary, the
Management Committee will work cooperatively with District and WVCWP staff to identify and
secure office space for the program.
8. WVCWP Costs
The District will invoice all WVCWP cities on a semi - annual basis for WVCWP costs, in
July and January of each Fiscal Year, consistent with the annual budget approved by the
WVCWP Management Committee, and consistent with the Cost Sharing Schedule as set forth in
Attachment A. The July 2012 invoice, and each subsequent July invoice, shall be for 50% of the
program costs as approved in the annual budget. The January 2013 invoice shall be for the
remaining 50% of the first year's approved budgeted costs. Beginning with the January 2014
invoice and for each subsequent January invoice, the District shall provide the agencies with a
reconciliation of actual program costs for the prior fiscal year and shall invoice the agencies an
adjusted amount that takes into account the actual costs and payments for the prior Fiscal Year
E
made by the District on behalf of the WVCWP as well as the actual payments made by the cities
to the District. The District shall provide such detail as requested by the cities in its calculation of
the January reconciliation invoice. The cities will also reimburse the District for its overhead and
administrative costs as approved by the cities and incorporated in the annual WVCWP Budget.
On or before August 1, 2012, the District shall provide an accounting to the parties of all funds
being held by the District on behalf of the WVCWP and any outstanding charges and expenses
incurred by the District on behalf of the WVCWP through June 30, 2012. The District shall
provide appropriate documentation to the parties to support its accounting. Any remaining net
fund balance shall be credited against the parties' obligations to the District.
9. Storm Drain Cleaning and Other Direct District Costs
The West Valley Cities may request, and the District may provide, other services such as
storm drain cleaning, inspection and emergency response services. The District will separately
bill each city for the direct cost of any additional services that are not specifically part of the
WVCWP.
10. Term
This Memorandum of Understanding shall commence on July 1, 2012, or such other date
as indicated by the latest date of approval by any of the parties to the MOU, whichever is later.
The MOU shall terminate on June 30, 2032, unless terminated earlier under the provisions of
Section 12, Termination of Participation and Withdrawal from MOU.
11. Amendments
Any amendments or modifications to the MOU shall be in writing and approved by the
signatories to the MOU except as provided for in Section 12, Termination of Participation and
Withdrawal from MOU.
12. Termination of Participation and Withdrawal from MOU
Any party to this MOU may terminate its participation in the MOU and withdraw from
future participation upon written notification to the other parties to the MOU no later than
January 31" of each calendar year. Termination of participation would be effective on the 1st
5
day of July of the year of delivery of the written notice. Said notification date has been set so
that the remaining parties to the MOU can address budgetary and management implications of
the WVCWP in a timely manner, as well as determine any needed revisions to the proportional
cost sharing allocations. Withdrawal of a party from the MOU shall constitute an amendment to
the MOU but shall not necessarily require any subsequent legislation action on the part of the
remaining parties to the MOU.
13, Existing Agreements
Campbell, Los Gatos and Monte Sereno are anticipated to execute separate agreements
with the District for Storm Water Management Services, which shall provide for the continued
levy of a Storm Drainage Service Charge by the District on an annual basis upon adoption of a
Resolution by the District Board of Directors. In the event of any conflict between this MOU
and the separate agreements between the District and the cities of Campbell, Los Gatos and
Monte Sereno, the terms of the separate agreements shall prevail.
IN WITNESS WHEREOF, the parties hereto have executed this MOU on the date set forth beside
their signatures, to become effective on July 1, 2012.
Date:
Date:
Date:
Date:
CITY OF CAMPBELL
CITY OF MONTE SERENO
CITY OF SARATOGA
3
TOWN OF LOS GATOS
Date: WEST VALLEY SANITATION DISTRICT
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Attachment A
Cost Share Schedule
Costs of the WVCWP shall be allocated on the following basis:
Campbell
35.1%
Los Gatos
32.5%
Monte Sereno
2.7%
Saratoga
29.7%
TOTAL
100.0%
VA
Attachment B
West Valley Clean Water Program Responsibilities