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Home My WebLink About75-02 • 14- , RESOLUTION NO. 75-02 • 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 EUGENE SHAO AND LENA H. SHAO 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 Eugene Shao and Lena H. Shao. NOW, THEREFORE, the City Council of the Town of Los Altos Hills does RESOLVE as follows: 1. Public interest and convenience require the Town to enter into the Agreement • described above. 2. The Town 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 Eugene Shao and Lena H. Shao. PASSED AND ADOPTED this18th day of July , 2002. By: _ — -/ Ma ATTEST: City Clerk N:\DATA\Clients\L\LAH\Projects\S hao\Sewer.rut.wpd SANITARY SEWER REIMBURSEMENT AGREEMENT This Sanitary Sewer Reimbursement Agreement ("Agreement") is entered into this 18th day of July 2002,, by andbetween the Town of Los-Altos Hills, a municipal California ("Town") and Eugene Shao and Lena H. Shao, corporation of the State of p 9 Trustees of the Revocable Shao Family Trust For the Benefit of Eugene Shao and Lena H. Shao and Their Issue Under Instrument Dated December 15, 1984 Community Property ("Property.Owner").. RECITALS A. 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 by future users of a sanitary sewer extension for some of the costs associated with the sanitary sewer extension. B. In order to be reimbursed, a property owner may make an application to pursuant to those certain Policies, Procedures and Guidelines for Sanitary Town Reimbursement Agreements, dated May, 2001 ("Policies"). - C. Property Owner constructed a sanitary sewer extension commonly known - as the Elena Road Sewer Extension ("Sanitary Sewer Extension") within the.Town as more particularly shown on Exhibit A, attached hereto. D. Pursuant to the Policies, after proper application-by the Property. Owner, the City Engineer has found and determined 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 ata future date("Future Users"), as each Future User- has frontage along,the gravity sewer main and can connectdirectly, via a single lateral, to the gravity sanitary sewer main. E. The lands of the Future Users which may served by the Sanitary Sewer Extension in the future ("Reimbursement Agreement 'Service Area") are. more particularly set forthin Exhibit B, attached hereto. F. Town and Property Owner now desire to provide for reimbursement to Property Owner by each Future User for their pro-rata-share ("Usage Fee") as shown in Exhibit B,, attached hereto. Town and:Property Owner acknowledge that the total amount that the Property Owner may be reimbursed for the Sanitary Sewer Extension 1 N:\DATA\Clients\L\LAH\Projects1Shao\Sewer.agm.wpd • 411 is an amount totaling Twelve Thousand One Hundred Twenty Dollars ($12,120.00) ("Project Costs"), less Town administrative fees as set forth in Paragraph 9 (Administrative Fee). G. The final Project Costs have been determined,the list of Future Users has been reviewed and approved by Town Staff and construction of the Sanitary Sewer Extension was accepted by the Town. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereby agree as follows: 1. Request for Hook-Up to Sanitary Sewer Extension. The Town will collect the Usage Fee for each Future User as indicated in Exhibit B upon a request or a Town requirement for hook-up to the Sanitary Sewer Extension by each Future User within the Reimbursement Agreement Service Area. After such request or Town requirement, the Town shall be entitled to collect the Usage Fee at any time prior to the hook up by such Future User to the Sanitary Sewer Extension. In the event a lot in the Reimbursement Agreement Service Area is subsequently subdivided, each subsequent lot shall pay a prorated share of the original Usage Fee allocated to the lot prior to the subdivision(s). Upon collection of the Usage Fee from each Future User, the Town shall deduct an administrative fee of five percent (5%) from the Usage Fee in accordance with Paragraph 9 (Administrative Fee) of this Agreement. 2. Distribution of Collected Usage Fees. On December 31st of each year for which this Agreement is in effect, the Town shall pay Property Owner any and all funds collected pursuant to Paragraph 1 (Request for Hook-Up to.Sanitary Sewer Extension), less a five percent (5%) administrative fee, more particularly described in Paragraph 9 (Administrative Fee). The Town shall make the check payable to Eugene Shao and shall send such check to Property Owner at 25680 Elena Road, Los Altos Hills, CA 94022. 3. Applicable Regulations. All regulations and ordinances of the Town shall apply to this Agreement and to the performances hereunder. 4. Legality of Agreement. 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 this Agreement shall automatically terminate and Property Owner and its agents shall indemnify and hold the Town harmless from any claims or liability to Future Users who have paid the Usage Fee for the Sanitary Sewer Extension. 2 N:\DATA\Clients\L\LAH\Projects\Shao\Sewer.agm.wpd r • • • 5. Disputes. 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 Owner acknowledges that the Town is under no obligation to take any action whatsoever against such Future User to collect the Usage Fee. 6. Indemnification; Hold Harmless. Property Owner agrees to indemnify and hold the Town harmless 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. Further, 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. Nothing in this Agreement shall be construed as imposing any obligation upon the General Fund of Town. Payments shall be made to Property Owner only to the extent funds are actually received and collected by Town pursuant to this Agreement. 7. Term of Agreement. This Agreement, and the obligations of Town hereunder, whether or not any or all Usage Fees have been collected and remitted to Property Owner or its agents hereunder, shall terminate on the fifteenth (15th) anniversary of the date of this Agreement. 8. Administrative Fee. Prior to remitting any funds to Property Owner, Town shall be entitled to deduct an administrative fee in the amount of five percent (5%)from each Usage Fee to pay the costs incurred by Town in connection with the administration of this Agreement. 9. Fees and Costs. 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 the preparation of this Agreement. 10. Successors; Assignment. 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 Town, which consent shall not be unreasonably withheld. 11. Exhibits. The Exhibits attached hereto are hereby incorporated into this Agreement by this reference. 3 N:\DATA\Clients\L\LAH\Projects\Shao\Sewer.agm.wpd • • . 12. Merger. 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. TOWN OF LOS ALTOS HILLS • By: Mayor ATTEST: City Clerk APPROVED AS TO FORM: CityAttorney Y PROPERTY OWNER: Eugene Shao and Lena H. Shao, Trustees of the Revocable Shao Family Trust For the Benefit of Eugene Shao and Lena H. Shao and Their Issue Under Instrument Dated December 15,1984 Community Property Eugene 8;hao, Trustee - Lena H. Shao, Trustee 4 N:\DATA\Clients\L\LAH\Projects\Shao\Sewer.agm.wpd ' • • Exhibit A Engineering Plans for As-Built Sewer Extension for Elena Road dated June 17, 1993 consisting of one (1) sheet on file with the Engineering Department of the Town of Los Altos Hills. • • 5 N:\DATA\Clients\L\LAH\Projects\Shao\Sewer.agm.wpd • • •6" Exhibit B Future Users Address APN# Usage Fee 25630 Elena Road 182-16-022 $6060.00 25627 Elena Road 175-49-7 $6060.00 • 6 N:\DATA\Clients\L\LAH\Projects\Shao\Sewer.agm.wpd