HomeMy WebLinkAboutMalavalli Recocable TrustOn June 16, 2011, the Town of Los Altos Hills, a municipal corporation of the State of
California ("Town"), and the Malavalli Revocable Trust Dated March 13, 1997 ("Property
Owner") entered into a Sanitary Sewer Reimbursement Agreement ("Agreement"). That
Agreement was amended by Amendment No. 1 as approved by the City Council on May 20,
2013 and by Amendment No. 2 as approved by the City Council on October 17, 2013. The Town
and Property Owner hereby amend the Agreement again by this Amendment No. 3 as follows:
1. This amendment applies solely to Future Users, as defined in the Agreement, who
submit a Connection Request or receive a Connection Requirement Notice anytime between
October 19, 2020, and October 18, 2021. This amendment, however, does not apply to Future
Users numbers one (1) and two (2) in Exhibit B of the Agreement, APNs 182-10-006 and 182-
10-041. It applies solely to Future Users, numbers three (3) through twenty-five (25) in Exhibit B
of the Agreement.
2. The Agreement provides that the Usage Fee for Future Users, numbers three (3)
through twenty-five (25) in Exhibit B of the Agreement, is calculated by adding $84,872.91
(eighty-four thousand, eight hundred and seventy two dollars and ninety-one cents) plus the
Construction Cost Index ("CCI") percentage plus a five (5) percent administrative fee. Pursuant
to this Amendment No. 3, the Usage Fee will instead be calculated as follows: $50,000 (Fifty
Thousand Dollars) plus the CCI percentage plus a five (5) percent administrative fee.
(a) The Usage Fee may be paid in a single payment within thirty (30) calendar days
of submission of a Connection Request or receipt of a Connection Requirement Notice, or it may
be paid in two separate installments. The first installment shall be no less than $30,000 (Thirty
Thousand Dollars) and is due within thirty (30) calendar days of submission of a Connection
Request or receipt of a Connection Requirement Notice. The second installment is due within
one hundred and eighty (180) calendar days of a Connection Request or receipt of a Connection
Requirement Notice.
(b) If a Future User at any time fails to make a payment as required, or as otherwise
agreed in writing with the Town and as approved by Property Owner, the Town shall cause such
Future User's connection to be terminated. In the event such connection is not terminated for any
reason, the Property Owner retains the right to pursue any delinquent Future User for monies
owed. The prevailing party in any such action shall be entitled to its attorneys' fees and costs.
Property Owner shall be considered an intended beneficiary of the Agreement as well as
Amendment No. 3.
(c) The Usage Fee shall continue to be calculated according to the Agreement if the
Usage Fee does not satisfy the conditions set forth in Section 1 and Section 2 of this Amendment
No. 3, including submission of a Connection Request or receipt of 'a Connection Requirement
Notice after September 20, 2021. Accordingly, all other Usage Fees shall be calculated as set
forth in Exhibit B of the Agreement: $84,872.91 (eighty-four thousand, eight hundred and
seventy two dollars and ninety-one cents) plus the CCI percentage plus a five (5) percent
administrative fee.
3. Property Owner hereby acknowledges that as a result of the approval and
execution of this Amendments No. 3, the Usage Fee received by the Town from any Benefitting
Lands as a result of this Amendment will total less than what would have been received if the
Agreement had not been so amended, as will be the amount of any such reduced Usage Fee
distributed to the Property Owner as a result of those amendments. Property Owner agrees to
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accept any such amounts distributed to the Property Owner by the Town as a result of such
Amendments as the full amount due Property Owner and waives any right to the difference
between the amount that would otherwise have been paid under the Agreement prior to the
amendments.
4. Except as amended by Amendments No. 1, No. 2, and No. 3, the Agreement
remains in full force and effect.
The Town and the Property Owner hereby warrant that no promise, inducement or
agreement not expressed herein has been made to them, either individually or collectively, in
connection with this Amendment No. 3, and that this Amendment No. 3 constitutes the entire
amendment between them with respect to the subject matter set forth herein. It is expressly
understood and agreed that this amendment may not be altered, amended, modified or otherwise
changed in any respect whatsoever except by a writing duly executed by authorized
representatives of the parties hereto.
Dated: C� 2 o2O
Dated: ID 0
Dated: October 26, 2020
TOWN OF LOS ALTOS HILLS
By
Mayor
ATTEST
By
City Clerk
APPROVED AS TO FORM
By
City Attorney
3
Dated: 10/6/2020
3585126.1
By.
Malavalli Revocable Trust Dated
March 13, 1997