HomeMy WebLinkAbout61-10 RESOLUTION NO. 61-10
A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS APRROVING AN AGREEMENT BETWEEN
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR
UNIVERSITY AND THE TOWN OF LOS ALTOS HILLS REGARDING THE
LOS ALTOS HILLS C-2 TRAIL PROJECT
WHEREAS,pursuant to the terms of the Agreement for Trail Easements, Construction,
Management and Maintenance and Grant of Trail Easements between the Board of Trustees of
The Leland Stanford Junior University, a body having corporate powers under the laws of the
State of California("Stanford") and the County of Santa Clara(the"County"), executed by the
County on January 3, 2006 (the "Trail Agreement"), Stanford is required to offer to fund
improvements to an existing trail within the Town of Los Altos Hills, a municipal corporation
("the Town"), identified as the C-2 trail in the County's Trails Master Plan, and
WHEREAS,the Town will conduct an Initial Study and expects to prepare a Mitigated
Negative Declaration. The environmental review process will be completed in compliance with
the California Environmental Quality Act, and
WHEREAS,pursuant to Section 4.d of the Trail Agreement, Stanford and the Town
must enter into a written agreement regarding Los Altos Hills C-2 Trail Project, that establishes
a funding mechanism for the work to be done, among other things, and
WHEREAS, Stanford and the Town desire to enter into such an agreement regarding
the Los Altos Hills C-2 Trail Project.
NOW, THEREFORE, the City Council of the Town of Los Altos Hills does
RESOLVE that the Town hereby approves the proposed agreement between Stanford and the
Town of Los Altos Hills attached as Attachment A hereto; and that the City Manager is hereby
authorized and directed to execute the Agreement on behalf of the Town.
The above and foregoing resolution was passed and adopted by the City Council
of the Town of Los Altos Hills at a regular meeting held on the 18th day of November,
2010 by the following vote:
AYES: KERR, LARSEN, MORDO, SUMMIT AND WARSHAWSKY
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
By
Bree K , Mayor
ATTEST:
Karen Jost, ty Cler
AGREEMENT REGARDING THE LOS ALTOS HILLS C-2 TRAIL PROJECT
This Agreement Regarding the Los Altos Hills C-2 Trail Project(the "Agreement")is
entered into by and between The Board of Trustees of The Leland Stanford Junior University, a
body having corporate powers under the laws of the State of California("Stanford") and the
Town of Los Altos Hills, a municipal corporation ("Town"). It is effective as of the date it is
executed.
RECITALS
A. Under the terms of the Agreement for Trail Easements, Construction,
Management and Maintenance and Grant of Trail Easements between Stanford and the County
of Santa Clara (the"County"), executed by the County on January 3, 2006 (the"Trail
Agreement"), Stanford is required to offer to fund improvements to an existing trail within
Town, identified as the C-2 trail in the County's Trails Master Plan. This obligation is subject to
certain terms and conditions specified in the Trail Agreement,
B. In accordance with Section 4.c of the Trail Agreement, Stanford offered Town a
choice of three funding mechanisms. Stanford then offered a fourth funding mechanism in a
letter from Larry Horton to Carl Cahill, dated May 13, 2008. Town elected a slightly modified
version of the fourth funding mechanism as set forth in this Agreement. This Agreement is
intended to satisfy the condition in Section 4.d of the Trail Agreement which requires that the
parties enter into a written agreement as a condition precedent to Stanford's funding obligation.
C. Town will conduct an Initial Study and expects to prepare a Mitigated Negative
Declaration. The environmental review process will be completed in compliance with the
California Environmental Quality Act.
The parties agree as follows:
1.0 The Project. The Los Altos Hills (C-2) Trail Project(the"Project") is a project
consisting of the construction and improvement of a trail and other associated landscaping, as
more particularly described in the plans and specifications attached as Exhibit A (the"Plans").
The Project will also include the mitigation measures required pursuant to the provisions of the
California Environmental Quality Act(collectively, the"Mitigation Measures"). Town shall
conduct the environmental review in accordance with the California Environmental Quality Act;
upon completion, Town shall provide a summary of the Mitigation Measures to Stanford.
Stanford shall reimburse Town up to $30,000 for the cost of the environmental review as part of
the Reimbursable Costs in Section 2.0, below. If the total cost of the environmental review
exceeds$30,000(as set forth in Exhibit B) or the total cost of the Mitigation Measures exceeds
$20,000, the parties will meet and confer regarding the additional costs and if the parties are not
able to agree on a cost allocation of the additional costs, then Stanford or the Town may
terminate this Agreement in accordance with the terms of Section 12.1.
l
I�
1.1 Matadero Creek Crossing between Berryhill Court and Baleri Ranch
Road. The Plans contain two options for crossing the creek between Berryhill Court and Baleri
Ranch Road. As stated in the Plans, these options are mutually exclusive and Stanford will only
construct one of them. Town shall notify Stanford in writing of the option it has chosen no later
than March 31, 2011 and shall secure any necessary easements by April 30, 2011. Upon
providing written notice of election of one option the other option will be deemed rejected. If
Town fails to provide the required notice by March 31, 2011, then Town is deemed to have
selected Option 2.
2.0 Payment for Project. Stanford shall construct the Project at its sole expense on
behalf of Town. Stanford shall pay for the cost of trail design. Stanford shall pay for the cost of
permit fees for all permits required for the project. Stanford shall reimburse Town for its
reasonable administrative costs and staff and legal fees associated with the Project and this
Agreement, including but not limited to the cost of conducting an environmental review of the
Project in order to comply with CEQA, (collectively, the"Reimbursable Costs")up to a
maximum amount of$60,000. (See Exhibit B for Town's tentative budget for Reimbursable
Costs.)Within fifteen (15)business days of execution of this Agreement by both parties,
Stanford shall pay Town a deposit of$35,000 to be used to cover the Reimbursable Costs. Town
shall keep this money in a separate account and may only use it to pay for Reimbursable Costs.
Upon written notice by Town to Stanford that the amount of funds remaining in the deposit
account is less than $10,000, Stanford shall pay Town an additional $25,000 that will be
'deposited into the account. Upon written request by Stanford, Town shall supply Stanford with
receipts or other documentation verifying all withdrawals from the account and the purpose for
each withdrawal. Upon completion of the Project or termination of this Agreement, Town shall
pay Stanford any amount that remains in the account. Stanford may pay some initial costs
associated with preparation of the environmental review that were incurred prior to approval of
this Agreement. These costs will be credited against the$60,000 maximum amount set forth in
the Section 2.0.
3.0 Permits. Upon compliance with any applicable laws, Town shall issue all
permits required by Town for the Project. Town shall not impose any condition that is
inconsistent with this Agreement or that substantially delays the Project or increases its cost.
Town and Stanford shall obtain permits from other agencies having jurisdiction over the Project.
Town shall be the applicant for all permits; however, Stanford shall prepare and file the
applications on Town's behalf. Town and Stanford shall comply with the terms and conditions
of such permits. If requested by Stanford, Town shall cooperate with Stanford and shall exercise
reasonable efforts to assist Stanford to obtain such permits. Town and Stanford may not do
anything that would delay or prevent the issuance of any such permits. "Permits" includes
approvals of every kind and nature required by any governmental entity or public utility and in
any way related to the Project, including encroachment and grading permits. Town shall secure
any easements that are necessary for the construction of the Project.
4.0 Town's Obligation for Design. Town is responsible for the design of the
Project. Stanford has retained BKF Inc., Biggs Cardosa, Inc., Cornerstone Earth Group to
prepare preliminary plans for the Project. The Town will retain BKF Inc., Biggs Cardosa, Inc.,
2
and Cornerstone Earth Group to prepare final design, engineering and construction plans.
Stanford shall reimburse the Town an amount not to exceed $150,000 for the cost incurred by
BKF, Biggs Cardosa and Cornerstone and the Town staff costs for review of the plans. If the
costs incurred by BY-F, Biggs Cardosa and Cornerstone to prepare final design, engineering and
construction plans exceed$150,000, the parties will meet and confer regarding the additional
costs and if the parties are not able to agree on a cost allocation of the additional costs, then
Stanford or the Town may terminate this Agreement in accordance with the terms of Section
12.1. Town approved the Plans for the Project on . In accordance with Section 1.1 above,
Town shall provide notice of its selection of one of the two options for crossing Matadero Creek
between Berryhill Court and Baleri Ranch Road and obtain any necessary easements. If, during
construction, the Plans need to be changed due to unforeseen construction conditions, Town and
Stanford shall work together to modify the Plans to accommodate for such conditions. Any
changes to the Plans must be approved by Town and Stanford. All significant changes to the
Plans must be approved by Santa Clara County's Director of Parks and Recreation in accordance
with Section 4.c of the Trail Agreement.
5.0 Stanford's Obligations for Construction and Insurance. Stanford is
responsible for constructing the Project in accordance with the Plans (with the options chosen by
Town in accordance with Section 1.1 above) approved by Town. Subject to the terms and
provisions of this Agreement, Stanford will cause the Project to be (a) constructed in a good and
workmanlike manner in compliance with all applicable laws and the Plans and (b) completed no
later than December 31, 2011. Stanford shall require that its contractor provide, at the
contractor's own cost and expense, the types and amounts of insurance listed below against
claims for injuries to persons or damages to property that may arise from or in connection with
the construction of the Project by the contractor, its agents, representatives, employees, and
subcontractors. Stanford shall require that its contractor provide Certificates of Insurance
indicating that the contractor has obtained or currently maintains insurance that meets the
requirements of this section and under forms of insurance satisfactory, in all respects, to Stanford
and the Town. The contractor shall maintain the insurance policies required by this section at
least until the Completed Work is formally accepted by the Town. Verification of the required
insurance shall be submitted to Stanford and the Town prior to commencement of construction.
5.1 Workers' Compensation. Stanford shall require that it contractor maintain
Statutory Workers' Compensation Insurance and Employer's Liability Insurance
for any and all persons employed directly or indirectly by the contractor. The
Statutory Workers' Compensation Insurance and Employer's Liability Insurance
shall be provided with limits of not less than ONE MILLION DOLLARS
($1,000,000.00)per accident. In the alternative, the contractor may rely on a self-
insurance program to meet those requirements,but only if the program of self-
insurance complies fully with the provisions of the California Labor Code. The
insurer, if insurance is provided, or the contractor, if a program of self-insurance
is provided, shall waive all rights of subrogation against the Town and its officers,
officials, employees, and volunteers for loss arising from work performed under
this Agreement.
5.2 Commercial General and Automobile Liability Insurance.
3
5.2.1 General requirements. Stanford shall require that its contractor maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than TWO MILLION DOLLARS
($2,000,000.00)per occurrence, combined single limit coverage for risks
associated with the work contemplated by this Agreement. If a
Commercial General Liability Insurance or an Automobile Liability form
or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to the work to be performed under
this Agreement or the general aggregate limit shall be at least twice the
required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal
injury, including death resulting there from, and damage to property
resulting from activities contemplated under this Agreement, including the
use of owned and non-owned automobiles.
5.2.2 Minimum scope of coverage. Commercial general coverage shall be at
least as broad as Insurance Services Office Commercial General Liability
occurrence form CG 0001 or GL 0002 (most recent editions) covering
comprehensive General Liability and Insurance Services Office form
number GL 0404 covering Broad Form Comprehensive General Liability.
Automobile coverage shall be at least as broad as Insurance Services
Office Automobile Liability form CA 0001 (ed. 12/90) Code 8 and 9. No
endorsement shall be attached limiting the coverage.
5.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and
not on a claims-made basis.
b. Any failure of contractor to comply with reporting provisions of the
policy shall not affect coverage provided to Stanford and the Town
and their officers, employees, agents, and volunteers.
c. The Town, its officials, officers, employees and agents shall be named
as additional insured on the policies.
6.0 Inspection and Acceptance of Improvements
6.1 Delegation of Authority. By approval of this Agreement the Town
Council expressly delegates to the Director of Public Works ("Director"), currently Richard
Chiu, the authority to approve the work performed by Stanford and to do all other things required
of him or her by this Agreement. Any decision or failure to act by the Director may be appealed
by Stanford to the Town Council. Town shall expeditiously decide all such appeals in an
objective manner and on a good faith basis.
4
6.2 Inspection and Approval. When Stanford deems the Project complete (the
"Completed Work"), it shall, in writing, notify the Director who shall promptly inspect the
Completed Work. If the Completed Work is in accordance with the Plans, the Director shall, in
writing, approve the Completed Work. If the Completed Work is not in accordance with the
Plans, the Director may refuse to approve the Completed Work,but only by written notice that
sets forth in detail what must be done by Stanford to bring the Completed work into conformance
with the Plans ("the corrective or additional work"). Stanford shall then perform the corrective
or additional work. Upon completion of the corrective or additional work, Stanford shall notify
the Director who shall again promptly inspect the Completed Work, but only to determine
whether the corrective or additional work, as set forth in the written notice, has been completed.
If it has, the Director shall, in writing, approve the Completed work. Otherwise, this procedure
shall be repeated until the Director has approved the work. Town shall not withhold approval for
any other reason or unreasonably refuse to approve the Completed Work. The Director shall
communicate approval or disapproval no later than 15 working days after notice from Stanford.
6.3 Acceptance and Certification. After approval by the Director, Town shall
promptly accept the Completed Work at the next available Town Council meeting. Upon
approval and acceptance of the improvements, the Director shall certify in writing that the
Completed Work has been satisfactorily completed, at which time the Completed Work will vest
absolutely in Town. Stanford shall require its general contractor to (1) provide a one-year
warranty against any construction defects for the Completed Work, (2)repair at no cost to the
Town or Stanford any defects in the Completed Work that arise within one year of acceptance of
the Completed Work by the Town and (3) name the Town as a third-party beneficiary to the
construction contract between Stanford and the general contractor. Within thirty(30) days of the
Town's acceptance of the Completed Work, Stanford shall pay the Town$30,000 to cover
routine trail maintenance costs (as shown on Exhibit C) for the first two years of operation of the
trail. Town shall be responsible for all other management, repair, and maintenance of the
Completed Work and all improvements owned by Town to which the Completed Work connects.
6.4 Signage. Stanford shall install signs or plaques near each end of the
Project of reasonable design and size and in compliance with Town ordinances informing the
public of Stanford's participation in the Project. Each sign or plaque regarding Stanford's
participation shall contain the following wording, "Los Altos Hills Trail [or other name adopted
by Town] donated by Stanford University."
7.0 Indemnification. Stanford is constructing the Project as an agent for Town.
From and after acceptance of the Completed Work, Stanford shall have no responsibility for
claims that arise from the Completed Work. Town shall indemnify and hold Stanford harmless
from, and shall defend Stanford against any and all liabilities,judgments, damages, costs, and
claims arising in any manner from the Project including, but not limited to any third party claims
by users of the Project, accept to the extent such liability,judgment, damage, costs or claims
arise solely from the willful misconduct or negligence of Stanford, its employees, its contractors
or agents.
5
8.0 Alternative Dispute Resolution. Any dispute arising under this Agreement shall
be referred to binding arbitration as provided herein.
8.1 JAMS. Either party may commence arbitration. The arbitration shall be
administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures. The
arbitration shall be by a single arbitrator appointed jointly by the parties. If the parties cannot
agree on an arbitrator within ten days of the service of the notice commencing the arbitration, the
arbitrator shall be named by the process utilized by JAMS. The decisions and awards of the
arbitrator(s) shall be final and binding on the parties and may be confirmed, vacated, modified or
corrected only as provided in sections 1285 et seq. of the Code of Civil Procedure.
8.2 Neutral. The arbitrator shall be neutral and shall not have been employed
or retained by either party during the ten years preceding commencement of the arbitration. The
parties shall not engage in any ex parte communication with any arbitrator.
8.3 Attorneys'Fees. In his or her discretion, the arbitrator may award
attorneys' fees and costs to the prevailing party.
9.0 Representations.
9.1 Representations by Stanford. Stanford represents that it is authorized and
empowered to enter into this Agreement, which is enforceable by Town and that Robert C. Reidy
has been duly authorized by Stanford to execute this Agreement on its behalf.
9.2 Representations by Town. Town represents that it is authorized and
empowered to enter into this Agreement, which is enforceable by Stanford, and that the City
Manager has been duly authorized by the City Council to execute this Agreement.
10.0 Administration.
10.1 Town. The Director shall represent Town with regard to this Agreement
and the Project. The Director shall be the recipient of all communications to Town from
Stanford and shall communicate to Stanford on behalf of Town with regard to this Agreement
and the Project.
10.2 Stanford. Stanford shall provide to the Director by written notice, from
time to time, the names of a contact person employed by Stanford ("Stanford's
Representative(s)"). Until further notice, Stanford's Representative shall be its Director of
Design & Construction, currently Jim Inglis. Stanford's Representative shall represent Stanford
with regard to this Agreement and the Project. Stanford's Representative shall be the recipient of
all communications to Stanford from-Town and shall communicate to Town on behalf of
Stanford with regard to this Agreement and the Project.
10.3 No Personal Liability. This Agreement shall not create any personal
liability of any individual to the parties herein for any action or inaction related to their duties as
set forth herein.
6
11.0 Notice. All notices required or provided for under this Agreement shall be in
writing and shall be delivered personally or by overnight courier service or sent by certified or
registered mail, return receipt requested. Any notice given by(a)personal delivery,
(b)recognized overnight national courier service or(c) registered or certified mail, return receipt
requested, shall be deemed to have been duly given and received upon receipt. Notices to the
parties shall be addressed as follows:
Town: Richard Chiu, Director of Public Works
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Fax: 650.941.3160
Email: rchiu@losaltoshills.ca.gov
with a copy to: Carl Cahill, City Manager
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Fax: 650.941.3160
Email: ccahill@losaltoshills.ca.gov
with a copy to: Steven Mattas, City Attorney
c/o Meyers Nave
575 Market Street, Suite 2600
San Francisco, CA 94105
Fax: 415.421.3 767
Email: smattas@meyersnave.com
Stanford: Director of Design & Construction
Stanford University
Office of Real Estate
2755 Sand Hill Road, Suite 100
Menlo Park, CA 94025
Fax: (650) 854-9268
Email: jinglis@stanford.edu
with a copy to: General Counsel
Office of the General Counsel
Building 170, 3rd Floor, Main Quad, PO Box 20386
Stanford, CA 94305
Fax: (650) 723-4323
Email: zumwalt@stanford.edu
As a courtesy, each notice also shall be sent by fax or email,but the failure to do so shall not
invalidate the notice given or constitute a breach of this Agreement. Similarly, the copies of the
7
notice provided to the persons shown above are provided solely as a courtesy and the failure to
provide one or more copies shall not invalidate the notice given or constitute a breach of this
Agreement.
Any notice so delivered shall be effective upon the date of personal delivery or, in the case of
mailing to the person identified above as the recipient of notices for the party to whom notice is
given, on the date of delivery as shown on the U.S. Postal Service return receipt. Any party may
change its address for notice by giving ten days' notice of such change in the manner provided in
this paragraph.
12.0 Conditions Precedent; Termination.
12.1 Conditions Precedent. Stanford's obligations under this Agreement are
expressly conditioned upon: (i) approval by Santa Clara County's Director of Parks and
Recreation of the Plans in accordance with Section 4.c of the Trail Agreement, received in
writing by Stanford, (ii) completion and attainment of all necessary permits and any necessary
easements pursuant to Section 3, (iii) Town's approval of the Plans pursuant to Section 4, and
(iv) Stanford's acceptance of the cost of the mitigation measures pursuant to Section 1. If any of
these conditions is not satisfied by July 1, 2011, Stanford may elect to terminate this Agreement
by written notice to Town. Further, in the event any litigation or challenge is brought or
threatened against Stanford or the County with respect to the Trail Agreement, or Stanford or
Town with respect to this Agreement, and the same is not resolved to the satisfaction of Stanford
in its sole and absolute discretion (and/or Town in its sole and absolute discretion as to any
action threatened or brought against Town with respect to this Agreement) on or before July 1,
2011, then either party may elect to terminate this Agreement by written notice to the other party,
provided construction has not already commenced. The parties' respective obligations under this
Agreement will not commence until expiration of the period to challenge this Agreement under
CEQA. If the actual costs for environmental review and Mitigation Measures are greater than
the projected costs in Section 1.0, or if the actual costs for design are greater than the projected
costs in Section 4.0, and the parties do not agree on an allocation for the additional costs, then
either party may terminate this agreement by written notice to the other party.
12.2 Termination. If either party elects to terminate this Agreement as
provided in Section 12.1, both parties will be released from any further obligations hereunder.
13.0 No Third Party Beneficiaries. This Agreement is for the benefit of the named
parties only and is not intended, and shall not be construed to be for the benefit of any third
party. In particular, this Agreement expressly is not for the benefit of any public utility,
governmental or other entity that owns any facility or improvement, including utility facilities,
the relocation of which is necessary, required or desirable for the Project. This Agreement is not
intended to benefit the owners of any such facilities or improvements or any other third party or
to relieve such owners or any third parties from any obligation under law or under any franchise
or other agreement with Town that requires such owners or third parties to pay for the cost of
relocating facilities or improvements made necessary by this Project, or any other public works
project.
8
14.0 Exhibits. The following Exhibits are attached to this Agreement and by this
reference incorporated herein as if set forth in full.
Exhibit A Plans for the Project
Exhibit B Town's tentative budget for Reimbursable Costs
Exhibit C Town's list of routine maintenance items
The parties have executed this Agreement on the dates set forth below.
The Board of Trustees of the Leland Stanford Junior University
By: Stanford anag ment Com an
By �
?
Robert C Rei y
Vice President fbr Land, Building d Real Estate
Date: November A, 2010
Approved as to form:
uinn Arntsen, University Counsel
Town of Los Altos Hills
By: Carl Cahill, City Manager
Approved as t form:
Steven Matta ity A orney
1546673.1
9