HomeMy WebLinkAboutAddendum 3-18-1969tz
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CONTRACT ADDENDUM FOR
TOWN OF .LOS ALTOS HILLS' ALLOCATION
AND PAYMENT OF CAPITAL EXPENSE
!NCUR1a ED BY CITY OF PALO ALTO PAR.TICIPATION
IN REGIONAL WATER QUALITY CONTROL PLANT
W111EREAS, the Cities of Palo Alto, Mountain View and Los Altos
have joined resources for the purpose of constructing a Regional
Water {quality Control Plant, hereinafter called "Plant", said
Plant to be owned and operated by City of Palo Alto. To complete
this project the City of Palo A -3 -to will have invested from its
Sewer utility Fund, net of Federal Grant, approximately $4,000,000,
$3,500,000 being derived from proceeds of a general obligation
bond issue and the remainder from a loan 'from the City of Palo Alto
Capital I:rprovement Fund; and.
WHEREAS, Plant will be used to process sewage effluent of
the Town of Los Altos Hills in accord with a contract, Palo Alt -0
No. 2876, dated March 18, 1968, and anended from time to time;
and
WHEREAS, -said contract provides.for-the Town of Los Altos
Hills to pay its proportionate.share of annual rcosts of opera-
tion and maintenance, plus a proportionate share of the cost of
capital additions or enlargements to Palo Alto's sewage system,
hereinafter called "Joint System", which includes Plant; and
WHEREAS, it is desirable that the Town of Los Altos Hills
finance its share of the capital cost over a period of time to,
among other reasons, more accurately reflect the long-term alloca-
tion of costs;
NOW, THEREFORE, it is agreed between the City of Palo Alto,
a municipal corporation, hereinafter called "City", and the Town
of Los Altos Hills, a municipal corporation of the State of
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California, hereinafter called "Los Altos Rills"I that,City of
?alo Alto Contract No. 2876 between City and Los Altos Hills
dated March 18, 1968, and from time to time anended, is amended to
add the following sections:
1. CAPACITY OF PLANT; USE OF CAPACITY. The various units
of the Joint System shall be designed and have a capacity to convey
to the treatment plant and treat and dispose of the volume of sewage
specified in Exhibit "A", attached hereto and made a part hereof
Palo Alto Sanitary District, the Town of Los
by reference. East
Altos Hills and Stanford shall be entitled for the duration of
this agreement to use the proportion of the capacity of said units
of the Joint System as set forth in said Exhibit "A". No party
hereto shall use the Joint System or any part thereof to a greater
percentage of its capacity than is specified by said Exhibit "A"
except with the approval and agreement of the other parties hereto
in accordance with the terms and conditions hereinafter provided.
2. STUDY OF FUTURE NEEDS. Each party to this agreement
agrees to make an engineering study to redefine future needs when
the sewage flow from its respective service area reaches eighty
percent (80%) of capacity rights set forth in said Exhibit "A".
3. ACQUISITION OF ADDITIONAL CAPACITY. In the event either
party to this agreement may hereafter desire additional capacity
in Plant or any unit thereof in excess of the proportionate
capacity allocated under said Exhibit "A" and the said Plant or
unit thereof is not then being used by the other party to the full
percentage of the total capacity to which said other party is en-
titled, the party desiring such additional capacity slay rent or
such additional capacity rights.
purchase from other party
h. SHARING OF COSTS OF ACQUISITION AND CONSTRUCTION OF THE
PLANT. The cost of preparation Of the predesign rePO -':
fications, contract documents'and related materials,
plans, speci
and the cost of acquiring and constructing the Plant, including
2 -
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............
the cost of land, easements and rights of way, engineering
inspection and all incidental expenses, shall be borne and paid
by Los Altos Hills in the same proportion as its allocation of
capacity rights shown`in Exhibit '"A".
5.
PAYMENT OF PROPOP'TIONP_TE SHARE-
(a)
HARE.(a) The portion of City investment derived from the
General Obligation Bond Issue of 1969 ($3,500,000) will be re-
covered in accord with schedule of maturing principal and interest
payments shown in Exhibit "B" attached hereto and made a part
hereof. Los Altos Hills agrees to pay its respective share of
annual debt service costs in the same proportion as its allocation
of capacity rights shown in Exhibit "A".
(b) The portion of City investment derived from the
City of Palo Alto Capital Improvement Fund.loan (approximately
$5-00,000) will be recovered in accordance with the schedule of
principal and interest payments shown in Exhibit "C" attached
hereto and made a. part hereof. Los Altos Hills agrees to pay its
respective share of annual loan repayments to the City of Palo Alto
in the same proportion as its allocation of capacity rights shown
in Exhibit "A".
(c) Except for the payment scheduled for 1970, the
sums due City each fiscal year, plus twenty-five percent (250)
surcharge upon said sums due City, will be billed annually on or
before August 1st and, pif unpaid after December 1st, such sums.
will be considered past due and shall bear interest on the full
amount past due at the rate of one percent (1%) per month.
(d) In the event that Los Altos Hills desires to advance
its share of debt retirement, as shown in Exhibits "B" and "C
City will allocate the amount advanced to said year or years and-
pay-.mer.-
nd
iaaY ,t eiA j.. t,: -8v +..i u.._es
Exhibits. "B" and "C".
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(e) _ Upon completion of the project and ,certification
of costs thereof by the City Controller and the Federal Agency,
the principal amount Lof approximately $500,000 and interest charges
identified in Sub -section (b) above and Exhibits "A" and "C" will
be adjusted to reflect such final actual costs.
6. EFFECT ON ORIGINAL CONTRACT. In all other respects,
Palo.Alto Contract No. 2876 dated March 18, 1968, and amended
from time to time, shall remain in full'.force and effect.
ATTEST:
City Cle
APPROVED AS TO FOP&I:
Sr. Asst. City Attorney
APPROVED AS TO CONTENT:
Water'' -Gas' -Sewer Dept..
APPROVED:
City Treasurer
z
...elana�
City Controller
V
CITY OVIPALO ALTO
BY A y tk i:__
r
TOWN OF OS ALTOS HILLS
BY
ATTEST:
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ALLOCATION OF ^ REATi1ENT P..(,NT FUNDING
BASED UPON DESIGN CAPAC11IFS
Total Cost &
Capacity Rights
Unit No. i - Treatment Plant
A. Capacity mgd 20.00
(Present) Percent
100.0Oo
Cost $4.423,93/4
B. Capacity 23,00
(Future) Percent 100.00%
Cost $ 520,000
TOTAL UNIT N0. 1 $4,94.3,934
Unit No. 2 - Interceptor Sewer
Percent
Cost $ 190,922
Engineering
& Design
Unit No. l $ 236,200
Unit No. 2 $ '_4, 783
Construction Engineer; ng
$ 95,503
TOTAL $5,481,339
Federal Cont-ribation 33% (1,808,84 2)
Cities' Contribtion 671 $3,672,497
Legal & Fiscal
45,300
R1ght -of -Way
Unit 1 - Treatment Plant 166,739
Joint Intercepting Sewer 5,287
GPkND TOTALS $3,889,823
COMPOSITE PERCENT 100.00%
E.P.A.
Stanford
L. A. 11.
Palo Alto
$517,732
$530,815
$206,047
$4,226,745
(170,852)
(175,169)
OD
2.00
.13
$355,646
10.00%
10.00%
3.66%
76.34%
$442,393
$4+2,393
$161,916
$3,377,232
2.00
2.40
.84
17.76
8.70%
10.43%
3.66%
77.21!
$ 4240 $ 54,236 $ 19,032 $ 401,492
$487,633 $496,629 $180,948 $3,778,724
6.30% 93.70%
12,028 178,894
20,549 24,635 8,645 182,370
- - 931 13,852
9,550
9,550
3,&95
722905
$517,732
$530,815
$206,047
$4,226,745
(170,852)
(175,169)
( 67,996)
(1,394,825)
$346,880
$355,646
$138,051
$2,831,920
4,530 4,530 1,658 34,582
16,67+ 16,674 6,103 127,288
r 333 4,954
;:368,084 $376,850 $146,145 $2,998,74.
9 Zn% 9169% 3.76% ..77.09%
EXHIBIT P
Due
Principal
1970
$
1970
210,000
1971
225,000
$ 203,925
$3,500,000
1972
240,000
1973
255,000
1974
270,000
1975
275,000
1976
300,000
1977
325,000
1918
325,000
1979
350,000
1980
375,000
1981
350.000
Totals $3,500,000
1970 SEWER UTILITY BOTS
DEBT RETIREMENT SCHEDUTE
EXHIBIT B
Total
Outstanding
Interest
Int. & Prin.
Principal
Interest
$ 203,925
$ 203,925
$3,500,000
$1,540,849
197,625
407,625
3,500,000
1,336,924
184,575
409,575
3,290,000
1,139,299
170,625
410,625
3,065,000
954,724
155,775
410,775
2,825,000
784,099
140,025
410,025
2,570,000
628,324
124,225
399,225
2,300,000
488,299
108,125
408,125
2,025,000
364,074
90,381
415,381
1,725,000
255,949
71,694
3969694
1,400,000
165,568
52,288
402,288
1,075,000
93,874
31,349
406,349
725,000
41,586
10,237
360,237
350,000
10,237
$1,540,849
.$5,040,849
EXHIBIT B
A
1970 CAPITAL IMPROVEMENT FUND LOAN
DEBT RETIRDMENT SCHEDULE
Due
Principal
1970
$
Principal
1970
30,000
$ 29,121
1971
32,000
yP
1972
34,300
191,000
1973
36,500
470,000
1974
38,600
58,700
1975
39,300
22,300
58,700
403,600
112,000
1976
42,900
367,200
1977
46,400
57,000
1978
46,400
15,400
1979
50,000
a9
12,900
59,300
246,400
1980
53,600
56,600
1981
50,000
7,500
Totals
$ 500,000
1970 CAPITAL IMPROVEMENT FUND LOAN
DEBT RETIRDMENT SCHEDULE
EXHIBIT C
Outstanding
Interest
Int. & Prin.
Principal
Interest
$ 29,121
$ 29,121
$ 500,000 $
220,121
28,200
58,200
500,000
191,000
26,400
58,500
470,000
162,800
24,400
58,700
437,900
136,400
22,300
58,700
403,600
112,000
20,000
58,600
367,200
89,700
17,700
57,000
328,600
69,700
15,400
58,300
389,300
52,000.
12,900
59,300
246,400
36,600
10,200
56,600
200,000
23,700
7,500
57,500
153,600
13,500
4,500
58,100
•103,600
6,000
1,500
51,500
50,000
1,500
$ 220,121
$ 720,121
EXHIBIT C
PROPOSED SCHEDULE OF PPINCIPAL AND INTEP.E U
PAY�-MNTS DUE CITY OF PALO ALTO
Note: A 25 percent surcharge will be added to the
above annual amounts as provided in Palo
Alto Contract No. 2576 of March 18, 1968,
Principal and Interest
Los Altos Hills
Due
Exhibit B
Exhibit C
Total
3..611
1970'
$ 203,925
$ 29,121
$ 233,046
1970
407,625
58,200
465,825
610,550
87,321
698,871
S 26,277
1971
409,575
58,500
468,075.
17,600
1972
410,625
58,700
469,325
-17,647
1973
410,775
58,700
469,475
17,652
'1974
410,025
53,600
625
17,62G
1975
399,225
57,000
456,225.
17,154
1976
408,125
55,300
466,425
17,537
1977
415,381
59,300
474,681
17,840
1978
396,694
56,600
453,294
17,044
1979
402,288
57,500
459,788
17,288
1980
406,349
58,100
464,449
17,463
1981
360,237
5',500
411,737
15,482
. $5,040,849
$720,121
$5,760,970
$216,612
Note: A 25 percent surcharge will be added to the
above annual amounts as provided in Palo
Alto Contract No. 2576 of March 18, 1968,