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Staff ReportPREPARED BY: MATT MORLEY DIRECTOR OF PARKS AND PUBLIC WORKS Reviewed by: Assistant Town Manager Town Attorney Finance MEETING DATE: 10/04/16 ITEM NO: 7 COUNCIL AGENDA REPORT DATE: SEPTEMBER 23, 2016 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: STORM MAINTENANCE AND RESPONSE SERVICE AGREEMENT WITH WEST VALLEY SANITATION DISTRICT A. AUTHORIZE THE TOWN MANAGER TO EXECUTE A SECOND AMENDMENT TO STORM MAINTENANCE AND RESPONSE SERVICE AGREEMENT WITH WEST VALLEY SANITATION DISTRICT FOR STORM DRAIN MAINTENANCE SERVICES FOR FY 2016/17 IN AN AMOUNT NOT TO EXCEED $43,000. B. AUTHORIZE THE TOWN MANAGER TO EXECUTE ALL FUTURE AMENDMENTS EFFECTIVE THROUGH JUNE 30, 2020 TO THE STORM MAINTENANCE AND RESPONSE SERVICE AGREEMENT WITH WEST VALLEY SANITATION DISTRICT FOR STORM DRAIN MAINTENANCE SERVICES INCLUDING ANNUAL RATE INCREASES, SUBJECT TO THE ANNUAL APPROPRIATION OF FUNDS BY THE TOWN COUNCIL. RECOMMENDATION: Authorize the Town Manager to execute a Second Amendment to Storm Maintenance and Response Service Agreement (Attachment 3) with West Valley Sanitation District for storm drain maintenance services for FY 2016/17 in an amount not to exceed $43,000 and execute all future amendments effective through June 30, 2020 to the Storm Maintenance and Response Agreement with West Valley Sanitation District for storm drain maintenance services including annual rate increases, subject to the annual appropriation of funds by the Town Council. BACKGROUND: The Town contracts with the West Valley Sanitation District to provide storm drain maintenance services to clean the Town’s storm drain system. The Town is required to clean the storm drains on a regular basis as part of the national Pollutant Discharge Elimination System (NPDES) permit. Ongoing PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: SERVICE AGREEMENT WITH WEST VALLEY SANITATION DISTRICT FOR STORM DRAIN MAINTENANCE SERVICES SEPTEMBER 23, 2016 BACKGROUND (cont’d): preventative maintenance of the storm drain system also ensures minimized flooding during the winter storm months. On July 1, 2012, a multi-year agreement was executed between the Town of Los Gatos and West Valley Sanitation for storm drain maintenance services. The agreement language was written to provide for up to three 2-year renewals, allowing extensions up through June 30, 2020 (see Attachment 1). In 2014, a First Amendment to Agreement was executed for the term from July 1, 2014 through June 30, 2016 (see Attachment 2). The Town pays West Valley Sanitation District for all costs of services provided as a pass through payment. Each fiscal year, the annual agreement costs and rate schedule are updated to reflect labor, equipment, and material needed to render these services. Sanitary/storm sewer fees and Storm Drain Maintenance Program fees are then collected through residential and commercial property tax rolls and have no General Fund impact. DISCUSSION: This second amendment reflects the FY 2016/17 Rate Schedule and Maintenance Costs. FY 2016/17 agreement costs are calculated not to exceed $36,000 with an added services contingency of $7,000. Subsequent years of the agreement will include incremental annual increases proportionate to the cost of providing the service. The renewal will allow for continued storm drain cleaning, which prevents winter flooding and ensures compliance with the Town’s Stormwater Permit for removing trash and other contaminants from the waterways. CONCLUSION: Staff recommends that Council authorize the Town Manager to execute a Second Amendment to Storm Maintenance and Response Service Agreement with West Valley Sanitation District for storm drain maintenance services for FY 2016/17 in an amount not to exceed $43,000 and execute all future amendments effective through June 30, 2020 to the Storm Maintenance and Response Agreement with West Valley Sanitation District for storm drain maintenance services including annual rate increases, subject to the annual appropriation of funds by the Town Council. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: SERVICE AGREEMENT WITH WEST VALLEY SANITATION DISTRICT FOR STORM DRAIN MAINTENANCE SERVICES SEPTEMBER 23, 2016 FISCAL IMPACT: Funds for the services for Fiscal Year 2016/17 have been adopted in the Fiscal Year 2016/17 Parks and Public Works Operating Budget. Future amendments will be subject to the annual appropriation of funds by the Town Council for this service in subsequent operating budgets. Sanitary/storm sewer fees and Storm Drain Maintenance Program fees are then collected through residential and commercial property tax rolls and have no General Fund impact. Attachments: 1. Original Agreement 2. First Amendment 3. Second Amendment to Storm Maintenance and Response Service Agreement with West Valley Sanitation District for storm drain maintenance services. 1 of 3 West Valley Sanitation District – Second Amendment – Storm Drain Maintenance and Response Services SECOND AMENDMENT TO STORM DRAIN MAINTENANCE AND RESPONSE SERVICE AGREEMENT This SECOND Amendment (SECOND AMENDMENT) to the Agreement for Storm Drain Maintenance and Response Services (AGREEMENT) is entered into and effective the first day of July, 2016 by and between the TOWN OF LOS GATOS, a municipal corporation (TOWN) and WEST VALLEY SANITATION DISTRICT (DISTRICT); RECITALS A. The parties entered into AGREEMENT on July 1, 2012, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Second Amendment. B. The parties entered into a FIRST AMENDMENT on July 1, 2014 (“First Amendment”), a copy of which is attached hereto and incorporated by reference as Attachment 2 to the Second Amendment. C. TOWN desires to formally renew and extend the Agreement (Section III.A. of Agreement) for continued services under the Agreement with District. AMENDMENT 1. TERM OF AGREEMENT: Effective July 1, 2016 through June 30, 2017. 2. REIMBURSEMENT: TOWN shall reimburse DISTRICT for all costs of services provided, based on the 2016/17 Rate Schedule attached hereto as Attachment B, in an amount not to exceed $36,000, plus $7,000 for additional services contingency for maintenance services, based on the Annual Agreement Costs attached hereto as Attachment C. 3. All other terms and conditions of the AGREEMENT remain in full force and effect. IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment. Town of Los Gatos West Valley Sanitation District _______________________________ ________________________________ Laurel Prevetti, Town Manager Jon P. Newby, District Manager Approved as to Form: Approved as to Form: ___________________________________ ___________________________________ Robert Schultz, Town Attorney Steven R. Meyers, District Counsel Department Approval: __________________________________ Matt Morley, Director of Parks and Public Works Attachment 3 2 3