Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2018
ITEM NO: 09
DATE: JANUARY 23, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE
A JOINT POWERS AGREEMENT FORMING THE WEST VALLEY CLEAN
WATER PROGRAM AUTHORITY AND APPOINT REPRESENTATIVES TO THE
BOARD OF DIRECTORS OF THE AUTHORITY
RECOMMENDATION:
Adopt a resolution (Attachment 1) authorizing the Town Manager to execute a Joint Powers
Agreement (JPA) (Attachment 2) forming the West Valley Clean Water Program Authority and
appoint representatives to the Board of Directors of the Authority.
BACKGROUND:
The West Valley communities of Los Gatos, Campbell, Monte Sereno, and Saratoga have
worked cooperatively for many years to implement and manage stormwater services in their
respective jurisdictions. This relationship was formalized in 1992 when Los Gatos, Campbell,
and Monte Sereno entered agreements with the West Valley Sanitation District (WVSD) for the
provision of stormwater management services in which all agencies would cooperatively pursue
compliance with Federal and State permitting requirements. Saratoga entered a similar
agreement with the District in 1994. The four jurisdictions are referred to collectively as the
“West Valley Communities.”
Each jurisdiction retains obligations under the National Pollution Discharge Elimination System
(NPDES) permit issued through the State and the Regional Water Quality Control Board with
specific and increasing requirements for compliance. While only the West Valley Communities
(not the District) are responsible parties under the permit, the agreements throug h the WVSD
have allowed for a regional approach toward stormwater compliance. The agreements also
PAGE 2 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A
JOINT POWERS AGREEMENT FORMING THE WEST VALLEY CLEAN WATER
PROGRAM AUTHORITY AND APPOINT REPRESENTATIVES TO THE BOARD OF
DIRECTORS OF THE AUTHORITY
JANUARY 23, 2018
S:\COUNCIL REPORTS\2018\02-06-18\09 - WVCWP - Resolution to execute a JPA\Staff Report FINAL.docx 1/31/2018 3:22 PM MM
BACKGROUND (cont’d):
authorized the District to collect revenues on behalf of the three jurisdictions (the exception is
Saratoga) through storm drainage service charges, which are assessed on the annual property
tax rolls. To facilitate the stormwater related work, the District created the West Valley Clean
Water Program (WVCWP) as an autonomous business unit to provide consolidated stormwater
program services to the West Valley Communities. The WVCWP provides all permit -related
work that does not necessarily need to be completed at the municipal level, delivering regional
stormwater management services to more efficiently comply with ever changing and ever more
stringent state mandated regulations.
On May 10, 2017, the WVSD Board of Directors approved the withdrawal from the WVCWP,
and termination of the District’s participation in various legal agreements with the WVCWP.
The District recommended the West Valley Communities consider forming a Joint Powers
Authority (JPA) to implement the stormwater program in its absence. The District’s effective
termination date was given as June 30, 2018.
The District has continued to meet with Town and other West Valley City staff to help facilitate
a smooth transition and has agreed to collect the storm drainage service charge for an
additional three years to allow the Town and other West Valley cities to develop a suitable
alternative funding source.
DISCUSSION:
The cooperative agreement relationship has performed well since 1992 , enabling the West
Valley Communities to effectively satisfy their stormwater regulatory requirements through a
cooperative management enterprise. The combined West Valley Communities are a stronger,
unified voice to represent their interests at the County level and before regional regulatory
agencies. Moreover, the WVCWP has demonstrated managerial and technical program value
by providing high-quality stormwater services, while satisfying stormwater regulatory
requirements, at a cost far more economical than what could be achieved individually by its
member agencies.
In preparation for the withdrawal of the WVSD from the agreements, Town staff evaluated three
program management scenarios to maintain stormwater services:
1. Maintaining the status quo under a revised Memorandum of Understanding (MOU).
2. Dissolving the cooperative agreements and proceeding individually.
3. Creating a JPA to implement stormwater actions under one agency.
PAGE 3 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A
JOINT POWERS AGREEMENT FORMING THE WEST VALLEY CLEAN WATER
PROGRAM AUTHORITY AND APPOINT REPRESENTATIVES TO THE BOARD OF
DIRECTORS OF THE AUTHORITY
JANUARY 23, 2018
S:\COUNCIL REPORTS\2018\02-06-18\09 - WVCWP - Resolution to execute a JPA\Staff Report FINAL.docx 1/31/2018 3:22 PM MM
DISCUSSION (cont’d):
In the evaluation of scenarios, staff reviewed legal implications, ability to fund and implement a
stormwater program, administrative requirements, political viability, and relative cost.
A status quo approach would involve revisions to existing agreements to include updating roles
and responsibilities, business and fiscal practices, service levels, communication, and data
management. While being the most simplistic option, staff determined program management,
staffing, funding alternatives, and program accountability would be challenging with the loss of
District participation. Most importantly, resolving issues associated with this approach were
projected to significantly increase operating costs through the addition of resources at each
participating jurisdiction to manage and oversee the program.
Dissolving the cooperative agreements scenario would revert to the pre-1992 arrangement
whereby each city would be responsible for their own stormwater program implementation
and state permitting requirements. This essentially creates four separate stormwater
compliance teams in each jurisdiction. Given the success and efficiency of the current model,
staff does not recommend this option.
Staff also evaluated the JPA scenario as recommended by the WVSD. This solution involves the
creation of a new JPA to implement the stormwater actions on behalf of the West Valley
Communities as a separate legal entity, similar to the existing West Valley Solid Waste
Management Authority. This approach could provide the current centralized services as
provided by the District and WVCWP, while maintaining a unified and deliberate vehicle for
managing collaborative activities and programs. The new entity would have independent legal
rights. Debts, liabilities and obligations would belong to the entity, and not the contracting
parties. The JPA could invoke bonding authority as well as taxing ability to provide alternativ e
funding sources in the future. Benefits include economies of scope and scale for program
management and implementation, staffing and fiscal flexibility, and maintaining greater
regional influence as a unified whole.
Following the evaluation, staff from the West Valley Communities are all recommending the
creation of the West Valley Clean Water Program Authority (WVCWPA) to their respective
Town and City Councils. The Councils from the other jurisdictions are also considering this item
at their February meetings. Since the newly created entity would have significant linkages with
solid waste (trash) issues, staff recommends close coordination and administration of the Clean
Water Program and the Solid Waste Management JPA. For this reason, staff recommends that
the committee memberships of both Authorities be identical to facilitate coordination and
PAGE 4 OF 4
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A
JOINT POWERS AGREEMENT FORMING THE WEST VALLEY CLEAN WATER
PROGRAM AUTHORITY AND APPOINT REPRESENTATIVES TO THE BOARD OF
DIRECTORS OF THE AUTHORITY
JANUARY 23, 2018
S:\COUNCIL REPORTS\2018\02-06-18\09 - WVCWP - Resolution to execute a JPA\Staff Report FINAL.docx 1/31/2018 3:22 PM MM
DISCUSSION (cont’d):
allow combined, coordinated meetings as appropriate. The 2018 appointee for the Solid Waste
Management JPA is Vice Mayor Leonardis with Councilmember Spector as the alternate.
The recommended organizational structure of the WVCWPA includes a Board of Directors
(Board) comprised of elected officials from the West Valley Communities, an Executive Director
with support staff, a policy advisory committee of senior staff from each agency, and a technical
committee from each city’s technical staff. This structure carries forward the current allocation
of resources while adding the oversight and guidance of the Board. Staff recommends that a
member and alternate of the Town Council be designated at this time to represent the Town on
the Board.
CONCLUSION:
The establishment of the WVCWPA will allow the West Valley Communities to continue to
comply with the NPDES permit in a cost-effective manner, taking advantage of regional
collaboration and creating direct formal oversight authority.
COORDINATION:
This project has been coordinated with the cities of Monte Sereno, Saratoga, and Campbell.
FISCAL IMPACT:
There is no fiscal impact from this action. The recommended action is intended to continue
funding the clean water program at current levels through existing funding sources.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENTS:
1. Resolution Authorizing the Town Manager to Execute a Joint Powers Agreement (JPA)
2. Joint Powers Agreement Creating the West Valley Clean Water Program Authority