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HomeMy WebLinkAboutDraft Addendum 1986CONTRACT ADDENDUM FOR TOWN OF LOS ALTOS HILLS RELATING TO THE BASIS FOR BILLING, THE PROCEDURES FOR BILLING, AND THE PAYMENT FOR EXPANDED TREATMENT CAPACITY AT THE REGIONAL WATER QUALITY CONTROL PLANT WHEREAS, 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 bei'ng owned and operated by the City of Palo Alto; and WHEREAS, Plant is used to process sewage effluent of the Town of Los Altos Hills in accord with a contract, Palo Alto No. 2876, dated March 18, 1968, and amended from time to time including amendments, addendums, and agreements of various dates; and WHEREAS, the parties hereto desire to provide a different basis for billina which considers not only the volume of wastewater discharge for the plant from Los Altos Hills but also the strength of such discharge, and to provide for the participation of the Town of Los Altos Hills in the 1988.treatment plant capacity expansion; NOW, THEREFORE, THE PARTIES hereto agree as follows: 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 "H" attached hereto and incorporated herein by this refer- ence, and more particularly described in the "City of Palo Alto Water Quality Control Plant Capacity Study May 1983 updated March 8, 198411 by WWI. Los Altos Hills agrees to adjust existing capacity rights to a uniform right capacity throughout all facilities of the plant as shown in accordance with such exhibit "H". 2. Amendment of Exhibits. Exhibit "B" of the Agreement is of hereby amended to, include the proposed plant enlargement and capacity rights adjustments. Said amended exhibit is attached hereto and by this reference incorporated herein as amended exhibit "B". 3. Acquisition and Construction Costs. Los Altos Hills shall proceed to finance and pay for the plant enlargement in. the proportions shown in exhibit "H". The Town of Los Altos Hills may participate in the revenue bond issue with the City of Palo Alto up to the entire cost of its share of the plant expansion, provided that Los Altos Hills de- livers to Palo Alto a written agreement to pay for that capacity in in- stallments of principal and interest equal to Los Altos Hills' propor- tionate share of plant capacity as applied to Palo Alto's share of principal and interest due and payable. Los Altos Hills, upon its election prior to April 1, 1986, to participate in Palo Alto's bond is- sue, hereby agrees to set rates at a level sufficient to recover net revenues in an amount equal to it's share of Palo Alto's billing. 4. Until July 1, 1988, or the date of completion and operation of the proposed plant expansion, whichever occurs later, either party to this agreement whose total average dry weather flow to the regional Water Quality Control Plant in any year exceeds the capacity rights of such party shown in exhibit "n" shall be allowed to rent unused capacity of the plant at a rate of four hundred dollars ($400) per MG primary and secondary capacity and two hundred dollars ($200) per MG of advanced waste treatment facility capacity. The unused capacity which is available for rent under this paragraph shall be taken proportionately from each party with unused capacity. 5. Los Altos Hills shall bear a proportion of the cost of certain maintenance and operation expenses of the Joint System as those maintenance and operation expenses are listed in exhibit "E" attached hereto, and incorporated herein by this reference. Los Altos Hills' portion of said costs shall be determined in proportion to its contracted share of the City of Palo Alto's discharge rights in the plant as shown in the "AAF" column of the 1995 design purchased capacity column of exhibit "H", attached hereto and incorporated herein by this reference. All other maintenance and operation expenses of the Joint System shall be born by the parties in proportion to the treatment costs associated with the volume of sewage, and the quantity of chemical oxygen demand, suspended solids, and amonia contained therein that each party contributes to the Joint System. For the current fiscal year, such maintenance and operation expenses shall be allocated in accordance with the percentages shown in exhibit "J", attached hereto and incorporated herein by this reference, and adjusted in subsequent years as provided therein. 6. Effect on Original Agreement. In all other respects, Contract No. 2876, dated March 18, 1968, and as amended, shall remain unchanged and is hereby ratified and confirmed. ATTEST: City Clerk ' APPROVED AS TO FORM: Sr. Assistant City Attorney APPROVED; Assistant City Manager Director of Finance Director of Utilities CITY OF PALO ALTO Mayor Date: TOWN OF LOS ALTOS HILLS By: Its: Date: kv!=)ED E.:HI3IIBE - ALLC TION OF CAPACI`IY RIGHTS (AMENDED OCIOBER 1984) CAPACITY RIGHTS Item Total Los Altos Mt.View Palo Alto r No. _ Description MU) MGD MGD % MGD % �_/0 1 Treatment Plant Site 53.0 6.0 11.3. 24.0 45.3 23.0 43.4 1970 2 Treatment Plant Enlargements, Group A: Units built for first stage capacity needs only 35.0 3.0 8.6 12.0 34.3 20.0 57.0 1970 3 Treatment Plant Enlargements, Group B: Units built for full capacity needs 53.0 6.0 11.3 24.0 45.3 23.0 43.4 1970 4 Existing Treatment Plant, Group C Units 35.0 3.0 8.6 12.0 34.3 20.0 57.1 1970 5 Existing Outfall, Plant to Bay 45.0 4.5 10.0 17.5 38.9 23.0 51.1 1970 6 Trunk. Line, Mountain View Plant to Junction Structure 50.0 50.0 100.0 1970 7 Trunk Line, Las Altos Plant to Junction Structure . 12.0 12.0 100.0 1970 8 'Brunk Line, Palo Alto Bayshore Lift Station to Junction ' Structure 18.0 18.0 100.0 A.170 9 Trunk Line, Junction Structure to Treatment Plant 80.0 12.0 15.0 50.0 62.5 18.0 22.5 1977* 10 Advanced Wastewater Treatment Facility 30.6 3.6 11.8 10.1 33.1 16.9 55.1 1988 -11 Treatment Plant Enlargement for :second Stage Capacity Needs:*** Primary/Secondary/AWT Phase I 1995 12 Full Advanced Wastewater Treatment Phase II 40.0** 3.8 9.5 15.1 37.8 21.1 52.7 40.0** 3.8 9.5 15.1 37.8 21.1 52.7 1995 13 Expansion of Outfallto Dumbarton Bridge 53.0 6.0 11.3 24.0 45.3 23.0 43.4 Space allocation for the capacity rights shown above is within the area designated fo initial construction, and the area marked *Future' for. -preliminary treatment, and the area marked "Future (2nd Stage)", all as shown on the drawing titled Water Quality control Plant Preliminary Layout contained in the Predesign Report, Regional Waste Water Treatment Works, City of Palo Alto, California, 1968, prepare by Jenks and Adamson. Revised September 23, 1968 Determined by Jenks & Harrison Project Report January 1976, Table IX -6 -* Total Planned Plant Capacity expressed in Annual Average Flow (AAF)rather than Average Dry Weather Flow as above *** Present estimates do not require full build out at this stage. See WI Water Quality Control Plant Capacity Study Final Report, May, 1983, updated March 1984 10-1-77* Advanced "wastewater Treatment Facilities; AMENDED EXHIBIT C Project Report $ 80,000 $ 9,440 ESTIMATED ENGINEERItU FEES ALLOCATION Design $349,000 $ 41,182 AND $192,299 6-1-85** Treatment Plant Enlargement Phase I: PAYMENT DATES EIR $60,000 $ 4,000 Date Description Total $375,000 AMXNT 29,000 Los Altos Mt. View Palo Alto 8-1-68 Predesign Report $ 25,000 $ 2,250 $ 8,500 $ 14,250 12-20-68 1/3 Engineering Plans & Spec: Treatment Plant $131,610 $ 11,845 $ 44,750 $ 75,015 Pipeline A 8,100 0 81100 0 Pipeline B 17,090 2,250 10,700 3,870 Total $156,800 $ 14,365 $ 63,550 $ 78,885 3-20-69 1/3 Engineering Plans & Spec: $156,900 $ 14,375 $ 60,600 $ 78,925 Total Engineering Plans & Specifications $470,600 $ 43,115 $190,750 $236,735 Total Engineering Design $495,600 $ 45,365 $199,250 $250,985 10-1-77* Advanced "wastewater Treatment Facilities; Project Report $ 80,000 $ 9,440 $ 26,480 $ 44,081 Design $349,000 $ 41,182 $115,519 $192,299 6-1-85** Treatment Plant Enlargement Phase I: EIR $60,000 $ 4,000 $ 31,000 $ 25,000 Design $375,000 $ 29,000 $191,000 $155,000 * Amended October 1977 ** Amended March 1985 �' The following buildings, improvements, and structures have been con- structed for full capacity and the cost of maintenance of these capital items shall be paid for in accordance with capacity rights as indicated on Exhibit B, Item 3. Account numbers appearing after the account title are from the "Uniform System of Accounts for Wastewater Utilities" as published by the Water Pollution Control Federation," dated 1967, as may be amended from time to time. The 300 numbered series refer to utility plant in service. The 700 numbered series refer to maintenance accounts. Utility Plant Maintenance in Service Account Joint System Interceptor 311.12 705.2 Pumping Plant Stsructure 312 727 Chlorination Building 313.34 745.34 Incineration Building 313.45 745.45 Operations Building 313.61 745.61 Conduits and Site Piping 313.64 745.64 Walks, Roadways, Fences, Landscaping 313.65 745.65 EMUK7 H PALD ALTO SERVICE AREA. CjLpz city Rights Adjustment and _. Estimated 1985 Plant Enlargement Cost �,l.location Existing 1995 Design Capacity Punch. Capacity wz MGD Peroent, Estimated Share ADWF Prim., Sec.,, "I Cbinstruction Amount J $1, 000 ) .�., %R.Iry 'Alp C'sa �" Phase I U--;CL- Palo Alto 15.02 12.7 14.5 15.3 60.85 1755 EPASD 2.25 1.9 2.9 3.1 28.85 832 Stanford 2.0 1.7 2.0 2.1 9.88 285 Los Altos Hills 0.73 0.6 0.6 0.5 0.42 12 20 16.9 20.0 21.1 100 2884 EXHIBIT J Allocation, billing, and payment of Palo Alto Regional Water Quality Control Plant operation and maintenance expenses. Operation and maintenance expenses shall be allocated to the below -listed expense categories in the proportions shown: Expense Category Volume of sewage Chemical oxygen demand (COD) Suspended solids (SS) Ammonia (NH3) Proportion 34% 22% 22% 22% In subsequent years, the above percentage allocations may be altered based upon actual cost data derived in accordance with generally ac- cepted accounting principles and upon agreement of all parties hereto. The volume of sewage received and the concentration of chemical oxygen demand, suspended solids, and ammonia contained therein shall be deter- mined for each agency in accordance with the criteria set forth in this Exhibit. Treatment expense rates per million gallons of wastewater volume and per thousand pounds of each of the other expense categories above shall be established for each fiscal year. Each Agency shall pay its portion of the operation and maintenance expenses based on these rates and the volume and quality of its wastewater. EVALUATING EXPENSE CATEGORY ITEMS Waste. Water Volume The wastewater volume for each Agency shall be measured by a flow meter or flow meters in its outfall or outfalls or such other method as agreed upon between parties. Sewage meters and their locations shall be as approved by the Manager of the Treatment Plant. Sewage Quality The characteristic values of COD, SS, and NH3 shall be deter- mined by sampling and analyzing wastewater from each Agency's outfall according to good laboratory and sampling practices. The best equip- ment and techniques reasonably available to the Regional Water Quality Control Plant personnel shall be utilized in determining these charac- teristic values. All samples shall be analyzed at the laboratory of the Regional Water Quality Control Plant. If any party to the agreement disputes the findings of the foregoing sampling program, the disputing party may collect samples at the same monitoring points and submit them for anal- ysis by a laboratory approved by the Manager of the Palo Alto Water Quality Control Plant at its own expense. Any disagreement over the. resulting findings may be arbitrated as provided in Section 8(d) of Contract No. 2876. LAH Billing and Payments "(c) Not later than April shall estimate the amount of money Joint System .during the ensuing additions, and the proportionate accordance with the provisions of 15th in any year the Administrator required to maintain and operate the fiscal year, including any capital amount to be paid by each party in this agreement. LAH