HomeMy WebLinkAbout57-05 • •
RESOLUTION NO. 57'05
RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS APPROVING AND AUTHORIZING
EXECUTION OF A SANITARY SEWER REIMBURSEMENT AGREEMENT
BETWEEN THE TOWN OF LOS ALTOS HILLS
AND FLDB SEWER EXTENSION LLC
WHEREAS, . the City Council of the Town of Los Altos Hills ("Town") has read
and considered that certain Sanitary Sewer Reimbursement Agreement ("Agreement")
between the Town and FLDB Sewer Extension LLC.
NOW, THEREFORE, the City Council of the Town does RESOLVE as follows:
1. Public interest and convenience require the Town of Los Altos Hills to
enter into the Agreement described above.
2. The Town of Los Altos Hills hereby approves the Agreement and the
Mayor is hereby authorized on behalf of the Town to execute the Agreement between
the Town of Los Altos Hills and FLDB Sewer Extension LLC.
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PASSED AND ADOPTED this f(D day o 4.t , 2005.
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By:
Mayr
ATTEST:
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City Clerk lir
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SANITARY SEWER REIMBURSEMENT AGREEMENT
This Sanita Sewer Reimbursement Agreement ("Agreement") is entered into this
/ ' 1ay of , , 2005, by and between the Town of Los Altos Hills, a
municipal c• •o ion of the State of California ("Town") and FLDB Sewer Extension LLC
("Property Owner").
RECITALS:
A. Property Owner constructed a sanitary sewer extension commonly known
as the Fremont Road and Burke Road Sanitary Sewer Facilities project, within the Town
as more particularly shown on Exhibit A, attached hereto ("Sanitary Sewer Extension").
B. Section 6-4.503 of the Town's Municipal Code allows the Town to enter
into a reimbursement agreement with a property owner so that the property owner may
be reimbursed for the responsible portion of the costs of a sanitary sewer extension by
future users of the extension as set forth in Exhibit B.
C. After due consideration of all relevant factors such as the location and
nature of the Sanitary Sewer Extension, the area to be served by the Sanitary Sewer
Extension, the developable areas potentially served by the Sanitary Sewer Extension
and the residential unit flow of sewage, the City Engineer has found and determined,
after proper application by Property Owner, that the Sanitary Sewer Extension will
benefit not only the lands of Property Owner, but also other lands which may be served
by the Sanitary Sewer Extension at a future date ("Benefiting Lands"). The Benefiting
Lands are more particularly set forth in Exhibit B, attached hereto. The current and
future owners of Benefiting Lands who later request a hook-up to the Sanitary Sewer
Extension, or who are required by the Town to connect to the Sanitary Sewer Extension,
shall be hereinafter collectively referred to as "Future Users".
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D. The Town and Property Owner now desire to provide for reimbursement to
Property Owner by each Future User for that Future User's pro-rata share of Sanitary
Sewer Extension costs ("Usage Fee") as shown in Exhibit B, attached hereto. Usage
Fees shall be subject to annual adjustments by the Town as specified in the then current
"Town of Los Altos Hills Policy, Procedures and Guidelines — Sanitary Sewer
Reimbursement Agreements" document, Exhibit C attached hereto, or its replacement
document. The Town and Property Owner acknowledge that the total amount that the
Property Owner may be reimbursed for the Sanitary Sewer Extension is an amount
totaling two hundred twenty seven thousand nine hundred forty-four dollars and thirty-
three cents ($227,944.33) plus annual adjustments and processing fees as set forth in
Exhibit B.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1. The Town will collect the Usage Fee for each Future User as indicated in
Exhibit B upon a request by a Future User to connect to the Sanitary Sewer Extension
("Connection Request"), or upon notice to a Future User that it is subject to a Town
requirement that the Future User connect to the Sanitary Sewer Extension ("Connection
Requirement Notice"). The Town shall be entitled to collect the Usage Fee at any time
after a Connection Request or Connection Requirement Notice, and prior to a hook-up
by a Future User to the Sanitary Sewer Extension.
2. Upon collection of the Usage Fee from a Future User, the Town shall add
an administrative fee of five percent (5%) to the Usage Fee to pay the costs incurred by
the Town in connection with the administration of this Agreement ("Administrative Fee").
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3. On December 31 of each year during which this Agreement is in effect, the
Town shall pay to Property Owner any and all funds collected pursuant to Paragraph 1
above. The Town shall make the check payable to Morton & Associates Inc. and shall
send such check to 385 Sherman Avenue, Suite 2, Palo Alto, CA 94306.
4. Property Owner agrees to indemnify and hold harmless the Town from any
claims, costs or expenses incurred by the Town in connection with any claim by any
person or entity with respect to this Agreement, the associated costs or the Usage Fees.
5. All regulations and applicable ordinances of the Town shall apply to this
Agreement and to the performances hereunder.
6. If by decision of a court of competent jurisdiction or by California law it shall
be declared or become unlawful or unconstitutional to require Future Users to reimburse
Property Owner for the Sanitary Sewer Extension, then (a) the Town's obligations to
collect and account for any further Usage Fee(s) shall automatically terminate; and (b)
Property Owner and their successors or assigns shall indemnify and hold harmless the
Town from any claims or liability to Future Users for the legally required return of any
Usage Fee.
7. In the event of a dispute between any Future User and the Town with
respect to the payment of the Usage Fee, the Town may, at its option, take any
appropriate action against such Future User to collect the Usage Fee. It is agreed that no
Future User shall be allowed to connect to the Sanitary Sewer Extension prior to
payment in full of the Usage Fee as specified in Exhibit B during the term of this
Agreement.
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8. Property Owner and its agents shall hold harmless the Town for any failure
by the Town to collect the Usage Fee from any Future User, and nothing in this
Agreement shall be construed as imposing any obligation upon the General Fund of the
Town and payments shall be made to Property Owner only to the extent funds are
actually received and collected by the Town pursuant to this Agreement.
9. This Agreement, and the obligations of the Town hereunder, whether or not
all of the Reimbursement Amount or any portion thereof has been collected and remitted
to Property Owner or its agents hereunder, shall terminate on the fifteenth (15th)
anniversary of the date of this Agreement.
10. Prior to execution of this Agreement by the Town, the Property Owner shall
pay all legal fees and costs incurred by the Town in connection with preparing this
Agreement.
11. This Agreement shall be binding upon the successors, heirs and assigns of
the parties hereto, but Property Owner shall not assign any of its rights under this
Agreement without the prior written consent of the Town, which consent shall not be
unreasonably withheld.
12. The Exhibits attached hereto are hereby incorporated into this Agreement
by this reference.
13. All negotiations and agreements previously made by the parties and their
agents with respect to this transaction are merged into this Agreement which completely
sets forth the obligations of the parties.
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The parties hereto have executed this Agreement effective as of the date written
above.
ATTEST: TOWN Or LOS ALTOS HILLS
Cit Clerk Mayor /
APPROVED AS TO FORM:
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City Att•iney
Property Owner
Bart Carey, President
FLDB Sewer Extension LLC
25621 Deerfield Drive
Los Altos Hills, CA 94022
arty C. Russell, Secretary-Treasurer
FLDB Sewer Extension LLC
13331 Lennox Way
Los Altos Hills, CA 94022
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Exhibit A
Engineering Plans for Fremont Road and Burke Road Sanitary Sewer Facilities
dated March 18, 2004, consisting of 13 sheets on file with the Engineering Department of
the Town of Los Altos Hills
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Exhibit B
Fremont Road and Burke Road Sanitary Sewer Facilities
Future Users
Address APN# Usage Fee
25700 Deerfield Drive 175-26-009 [$18,995.36+CCI%] +5% AF*
13290 Lennox Way 175-29-005 [$18,995.36+CCI%] +5% AF*
25740 Deerfield Drive 175-26-007 [$18,995.36+CCI%] +5% AF*
13530 Fremont Road 175-28-012 18995.36+CCI%] +5% AF*
25731 Deerfield Drive 175-26-006 [$18,995.36+CCI%] +5% AF*
+ ° + °
25141 Fremont Road 175-25-022 [$18,995.36 CCI/o] 5/° AF*
13613 Burke Road 175-25-060 [$18,995.36+CCI%] +5% AF*
25610 Deerfield Drive 175-26-011 [$18,995.36+CCI%] +5% AF*
13420 Fremont Road 175-29-001 [$18,995.36+CCI%] +5% AF*
13531 Burke Road (lot) 175-26-043 [$18,995.36+CCI%] +5% AF*
13303 Lennox Way 175-29-004 [$18,995.36+CCI%] +5% AF*
13651 Burke Road 175-25-004 [$18,995.36+CCI%] +5% AF*
* CCI% is Construction Cost Index adjustment from prior year which is applied to the
base Usage Fees in the first year of the Agreement and to the cumulative CCI-adjusted
prior year Usage Fees on June 30th annually thereafter;
5% AF is Administrative Fee as set forth in Paragraph 2. of the Agreement
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Exhibit B (page 1 of 2)
Fremont Road and Burke Road Sanitary Sewer Facilities
Future Users
# Address APN# Usage Fee($) CCI% CCI ($) Usage Fee+CCI ($) AF% AF($) Total Fees Required ($)
1 25700 Deerfield Drive 175-26-009 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
2 13290 Lennox Way 175-29-005 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
3 25740 Deerfield Drive 175-26-007 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
4 13530 Fremont Road 175-28-012 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
5 25731 Deerfield Drive 175-26-006 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
6 25141 Fremont Road 175-25-022 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
7 13613 Burke Road 175-25-060 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
8 25610 Deerfield Drive 175-26-011 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13 •,
9 13420 Fremont Road 175-29-001 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
10 13531 Burke Road(lot) 175-26-043 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
11 13303 Lennox Way 175-29-004 18,995.36 0.000 0.00 18,995.36 5.000 949.77 19,945.13
12 13651 Burke Road 175-25-004 18,995.37 0.000 0.00 18,995.37 5.000 949.77 19,945.14
227,944.33 227,944.33
Rev 05.06.2005 Notes: 1)CCI %is the Construction Cost Index or other Town approved cost adjustment factor from the prior year which will be applied
to the Usage Fee+CCI ($)amounts on June 30th each year during this Agreement
2)AF%is the 5% Administrative Fee charged by the Town on the Usage Fee+CCI ($)amounts
Exhibit B
Fremont Road and Burke Road Sanitary Sewer Facilities EXAMPLE ONLY :
Future Users 2004 CCI% =4.5%
# Address APN# Usage Fee($) CCI% CCI ($) Usage Fee+CCI($) AF% AF($) Total Fees Required ($)
1 25700 Deerfield Drive 175-26-009 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
2 13290 Lennox Way 175-29-005 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
3 25740 Deerfield Drive 175-26-007 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
4 13530 Fremont Road 175-28-012 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
5 25731 Deerfield Drive 175-26-006 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66 0'
6 25141 Fremont Road 175-25-022 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
7 13613 Burke Road 175-25-060 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
8 25610 Deerfield Drive 175-26-011 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
9 13420 Fremont Road 175-29-001 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
10 13531 Burke Road(lot) 175-26-043 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
11 13303 Lennox Way 175-29-004 18,995.36 4.500 854.79 19,850.15 5.000 992.51 20,842.66
12 13651 Burke Road 175-25-004 18,995.37 4.500 854.79 19,850.16 5.000 992.51 20,842.67
227,944.33 238,201.82
Rev.06.30.2005 Notes: 1)CCI %is the Construction Cost Index or other Town approved cost adjustment factor from the prior year which will be applied
to the Usage Fee+CCI ($)amounts on June 30th each year during this Agreement
2)AF%is the 5% Administrative Fee charged by the Town on the Usage Fee+CCI ($)amounts
Exhibit B (page 2 of 2)
Fremont Road and Burke Road Sanitary Sewer Facilities EXAMPLE ONLY :
Future Users 2005 CCI% = 2.25%
Prior Year Adjusted
# Address APN# Usage Fee($) CCI% CCI ($) Usage Fee+CCI ($) AF% AF($) Total Fees Required ($)
1 25700 Deerfield Drive 175-26-009 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
2 13290 Lennox Way 175-29-005 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
3 25740 Deerfield Drive 175-26-007 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
4 13530 Fremont Road 175-28-012 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
5 25731 Deerfield Drive 175-26-006 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
6 25141 Fremont Road 175-25-022 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
7 13613 Burke Road 175-25-060 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
8 25610 Deerfield Drive 175-26-011 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62III
9 13420 Fremont Road 175-29-001 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
10 13531 Burke Road(lot) 175-26-043 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
11 13303 Lennox Way 175-29-004 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
12 13651 Burke Road 175-25-004 19,850.15 2.250 446.63 20,296.78 5.000 1,014.84 21,311.62
238,201.80 243,561.34 _
Rev2.06.30.2006 Notes: 1)CCI % is the Construction Cost Index or other Town approved cost adjustment factor from the prior year which will be applied
to the Usage Fee+CCI ($)amounts on June 30th each year during this Agreement
2)AF%is the 5% Administrative Fee charged by the Town on the Usage Fee+CCI ($)amounts
Exhibit B
Fremont Road and Burke Road Sanitary Sewer Facilities EXAMPLE ONLY :
Future Users 2006 CCI% = 3.33%
Prior Year Adjusted
# Address APN# Usage Fee($) CCI% CCI ($) Usage Fee+CCI ($) AF% AF($) Total Fees Required ($)
1 25700 Deerfield Drive 175-26-009 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
2 13290 Lennox Way 175-29-005 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
3 25740 Deerfield Drive 175-26-007 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
4 13530 Fremont Road 175-28-012 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30 •
5 25731 Deerfield Drive 175-26-006 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
6 25141 Fremont Road 175-25-022 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
7 13613 Burke Road 175-25-060 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30 1
8 25610 Deerfield Drive 175-26-011 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
9 13420 Fremont Road 175-29-001 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
10 13531 Burke Road(lot) 175-26-043 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
11 13303 Lennox Way 175-29-004 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
12 13651 Burke Road 175-25-004 20,296.78 3.330 675.88 20,972.66 5.000 1,048.63 22,021.30
243,561.36 251,671.95 _
Rev3.06.30.2007 Notes: 1) CCI %is the Construction Cost Index or other Town approved cost adjustment factor from the prior year which will be applied
to the Usage Fee+CCI ($)amounts on June 30th each year during this Agreement
2)AF%is the 5% Administrative Fee charged by the Town on the Usage Fee+CCI ($)amounts
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Exhibit C
TOWN of LOS ALTOS HILLS
POLICY,PROCEDURES and GUIDELINES
SANITARY SEWER REIMBURSEMENT AGREEMENTS
Adopted June 7, 2001
Policy:
The Town of Los Altos Hills wishes to encourage the availability of public sanitary
sewers for all Town residents in a fair and rational way. In order to facilitate this goal,
the Town will enter into an agreement with property owners willing or required to
construct public sanitary sewer infrastructure in order to reimburse those constructers for
a fair share of the direct cost of construction collected from properties that directly
benefit from that construction.
Reference:
Title 6, "Sanitation and Health"; Chapter 4 "Sewage"; Article 5, "Sewer Improvement
Reimbursement"; Los Altos Hills Municipal Code
Procedures and Guidelines:
1) A Property owner, or legal entity, in the Town of Los Altos Hills may make
application to the Town to enter into a Reimbursement Agreement. If Property Owners
are outside the Town limits they must apply for annexation or an out-of-services
agreement and work with LAFCo.
2) Applications for a Reimbursement Agreement shall include the applicant's name
and address, two (2) sets of the approved, engineered plans for the construction, an
engineer's estimate of the cost of construction(See 6 below,the estimated cost is only
used as an indicator of the expected size of the project.), and a list of the proposed future
users with supporting documentation. Supporting documentation may include a Town
topographic map or a topographic map prepared by a licensed civil engineer for the area
of the Reimbursement Agreement at the discretion of the City Engineer. (See 9 below).
After receiving and checking the submitted information,the City Engineer will meet with
the Property Owner and provide any comments regarding the submitted information to
the Property Owner.
Thereafter the City Engineer will send the Property Owner a letter confirming the Town's
intent to enter into a Reimbursement Agreement with the Property Owner.
3) Reimbursement Agreements may be created retroactively for a period of 10 years
after the date of construction and acceptance by the Town, upon submittal of the
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information indicated in 2) above. The Town will not collect reimbursement fees nor be
responsible for connections made before the creation of the Reimbursement Agreement.
4) Reimbursement Agreements shall utilize a standard form agreement prepared and
approved by the City Attorney. A blank standard form agreement is available to
applicants for their information.
5) Reimbursement Agreements will only be submitted to the City Council for
approval after the final project cost has been determined, the list of future users has been
reviewed and approved by the staff and the construction has been accepted by the Town.
6) The final project cost shall include only the following items:
a) Design costs,
b) Construction costs,
c) Construction services such as construction inspection, compaction testing, and
staking, etc,
c) Town and City of Los Altos permit fees,
d) Other documented Governmental Agency fees,
e) Attorney fees as required for the Reimbursement Agreement but limited to 5% of
the final construction cost and supported by documentation,
f) Land acquisition costs limited to the appraised cost of the land as determined by a
certified, Town approved property appraiser.
Interest and other costs shall not be included. In case of questions, the City Engineer will
make the determination of applicability. Itemized invoices describing work performed
shall be submitted to the City Engineer for review and approval at the completion of the
project.
7) The properties included in the list of future users will generally be referred to as
the Reimbursement Agreement Service Area and shall be approved by the City Engineer.
8) The term of a Reimbursement Agreement shall be 15 years.
9) Future users shall only include those properties that will directly benefit from the
construction as follows. (Future users may include properties not currently within the
Town limits.)
a) For gravity sanitary sewer mains, future users are all those properties that
have frontage along the gravity sewer main and can connect directly, via a
single lateral,to the gravity sanitary sewer main.
The minimum length of sanitary sewer main extension that the City Engineer will
permit to be constructed in the public right of way shall be 200 lineal feet.
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b) For public lift stations and force mains, future users shall be all of those
properties within the basin that will need to use the lift station and force main for
public sanitary sewer service
Lift stations with a service area of 25 properties or more, may be public and those
with a service area of fewer then 10 properties shall be private. The determination
of public or private status for lift stations with a service area of between 10 and 24
properties will be made by the staff on a case-by-case basis. Guidance for service
areas may be obtained from the Lift Station Master Plan by Robinson and
Associates, dated May 16, 2000.
c) The property of initial investors in a Reimbursement Agreement shall be
included in the Reimbursement Agreement Service Area for the purposes of
calculating reimbursement amounts but will be deemed to have paid the
reimbursement amount by virtue of being an initial investor. A list of initial
investors shall be submitted with the final project cost.
10) The Property Owner may, at the Property Owners option, extend the gravity
sanitary sewer main past the Owner's property to include additional properties into the
Reimbursement Agreement Service Area.
11) Reimbursable costs shall be apportioned equally to the properties in the
Reimbursement Agreement service area. Should a lot in a service area be subsequently
subdivided, each subsequent lot shall pay a prorated share of the original reimbursement
amount upon connection.
12) The Town Engineering Department will maintain a list of all properties in
approved Reimbursement Agreement service areas with assessor parcel numbers (APN),
address, date of expiration of the Reimbursement Agreement and the reimbursement
amount. A copy of this list shall be given to the Building Department and Finance
Department each time the list is revised or at a minimum on June 30 each year. The
Reimbursement Agreement list will be revised each time a new Reimbursement
Agreement is approved or when an existing agreement has expired. On June 30th of each
year the reimbursement amount on the list of properties shall be adjusted for the
Construction Cost Index for the prior year.
13) Before issuing a Building Permit or a Plumbing Permit for a sewer connection,
the Building Department will determine if the property is on the Reimbursement
Agreement list and refer the prospective permittee to the Engineering Department for
payment of any applicable reimbursement amount before issuing the permit. Likewise the
Engineering or Public Works Departments shall check the list and collect the applicable
reimbursement amount before issuing an Encroachment Permit for a sewer lateral
connection.
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