2004-096 - Approve Continuation Agreement And Amendment No 3 Between The Town And West Valley Sanitation DistrictRESOLUTION 2004 - 96
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 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.
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 Agreement and Amendment.
1
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 21" day of June, 2004 by the following vote:
COUNCIL MEMBERS:
AYES: Sandy Decker, Diane McNutt, Joe Pirzynski
Vice Mayor Mike Wasserman.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
VICE MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS A
LOS GATOS, CALIFORNIA
"r''jr; _E O- THE TOWN CLERK
CONTINUATION AGREEMENT AND AMENDMENT NO-.4 42y a %0
TO SEWER AGREEMENT BETWEEN THE TOWN OF LOS 43MD
AND WEST VALLEY SANITATION DISTRICT :)RD
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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 terns and provisions of the 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.
B. An Information Transfer Plan that ensures all relevant Town knowledge and local
expertise of the sewer system is transferred to the District. The information will include all sewer
maintenance records and service requests for a minimum of 24 months prior to the transfer.
C. In 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 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 operational
responsibilities will be borne solely 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 as possible. Date certain milestones for each of the
Transition Plan elements will be set not later than August 16, 2004.
5. Upon completion of all Transition Plan elements and payment of 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. It completion of all Transition Plan elements and payment of all moneys owing
for transfer of ownership interests occurs prior to the expiration of this agreement, then this agreement
shall have no further force and effect.
WITNESS THE EXECUTION HEREOF the day and year first hereinabove written.
APPROVED AS TO FORM:
TOWN ATTORNEY
ATTEST:
Marian V. Cosgrove, Town Clerk
Town of Los Gatos
APPROVED AS TO FORM:
DISTRICT COUNSEL
TOWN OF LOS GATOS
LE
Title:
WEST VALLEY SANITATION
DISTRICT OF SANTA CLARA CO.
Title: