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Home My WebLink About26-03 RESOLUTION NO. 26-03 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 GHAFFARI AND GANESAN 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 Firooz Ghaffari and Giti Ghaffari (jointly"Ghaffari) and Ravikanth Ganesan and Jayashree Rangarajan (jointly Ganesan). 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 Ghaffari and Ganesan. PASSED AND ADOPTED this S day of H OL-7 , 2003. By: Mayor ATTEST: City Cler i • SANITARY SEWER REIMBURSEMENT AGREEMENT This Sanitary Sewer Reimbursement Agreement ("Agreement") is entered into this 164"day of MANI , 2003, by and between the Town of Los Altos Hills, a municipal corporation of the State of California ("Town") and Firooz Ghaffari and Giti Ghaffari (sometimes jointly "Ghaffari") and Ravikanth Ganesan and Jayashree Rangarajan (sometimes jointly "Ganesan). Ghaffari and Ganesan are sometimes herein referred to jointly as "Property Owners". RECITALS: A. Property Owners constructed a sanitary sewer extension commonly known as the Purissima Road Sewer Extension 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 some of the costs of a sanitary sewer extension by future users of the extension. 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 volumes of sewage, the City Engineer has found and determined, after proper application by Property Owners, that the Sanitary Sewer Extension will benefit not only the lands of Property Owners, 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". 1 L:\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • • D. The Town and Property Owners now desire to provide for reimbursement to Property Owner by each Future User for that Future User's pro-rata share ("Usage Fee") as shown in Exhibit B, attached hereto. The Town and Property Owners acknowledge that the total amount that the Property Owners may be reimbursed for the Sanitary Sewer Extension is an amount totaling two hundred eighty-seven thousand, eight hundred and sixty dollars ($287,860), less Town administrative fees as set forth in Paragraph 2 herein ("Reimbursement Amount"). 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, and prior to remitting any funds to Property Owners, the Town shall deduct an administrative fee of five percent (5%) from the Usage Fee to pay the costs incurred by the Town in connection with the administration of this Agreement. ("Administrative Fee"). 3. On December 31 of each year during which this Agreement is in effect, the Town shall pay to Property Owners any and all funds collected pursuant to Paragraph 1 above, less the Administrative Fee. The Town shall make the check payable to Firooz Ghaffari and Ravikanth Ganesan and shall send such check to Property Owners 2 L:\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • • at C/O Firooz Ghaffari, 23221 MoraGlen Drive, Los Altos, CA 94024. 4. Property Owners agrees to indemnify and hold harmless the Town from any claims, costs orexpenses 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 Owners 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 Owners 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; provided, however, Property Owners acknowledges that the Town is under no obligation to take any action whatsoever against such Future User to collect the Usage Fee. 8. Property Owners 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 Owners 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 3 L:\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • • to Property Owners 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 Owners 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 Owners 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. The parties hereto have executed this Agreement effective as of the date written above. 4 L:\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • . i ATTEST: TOWN OF LOS ALTOS HILLS By: - City Clerk IP Mayor APPROVED A FORM: -------- City Attorney Property Owners ':'.' Firooz ffari ,,,/// c ,--'- Giti Ghaffari -- Ravikanth Ganesan " - JA. shree angarajan 5 L\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • • Exhibit A Engineering As-Built Plans for PURISSIMA ROAD SANITARY SEWER GRAIVTY LINE dated April 10, 2002 consisting of eight (8) sheets on file with the Engineering Department of the Town of Los Altos Hills 6 L:\engineering\mcheng\Report CC\2003\0515\SwrRmbGhff.doc • • Exhibit B Future Users Purissima Road Sewer Line Samuel Lane to Minorca Court Address APN # Usage Fee 27555 Purissima Road 175-55-012 $28,786 12715 Canario Way 175-55-010 $28,786 12896 Viscaino Road 175-55-011 $28,786 12897 Viscaino Place 175-55-013 $28,786 • 12889 Viscaino Place 175-55-049 $28,786 27095 Purissima Road 175-55-049 $28,786 27500 Purissima Road 182-04-073 $28,786 Little League Field 182-04-073 $57,572 12520 Minorca Court 182-04-064 $28,786