HomeMy WebLinkAbout03/29/1971Aw CITY COUNCIL
TOWN OF LOS ALTOS HILLS
MINUTES OF A REGULAR ADJOURNED MEETING
March 29, 1971
REEL 34 - SIDE 1, TRACK 2 — FOOTAGE 925 - 1390
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Mayor Walter A. Hanson called the Regular Adjourned Meeting of the City Council
of the Town of Los Altos Hills to order at 7:45 P. M. in the Council Chambers of
th- Town Hall, 26379 Fremont Road, Los Altos Hills, with the following members
answering roll call: Present: Councilmen Corbett, Davey, Grabowski, Helgesson
and Mayor Benson. Absent: Now.
Mayor Benson stated that this special meeting had been called for the express
purpose of discussing the financial crisis that the Tow faces in meeting its
contractual obligations with Palo Alto for sanitary sewer capacity rights. He
noted that it was not the Council's intent at this meeting to take any action but
rather to gather ideas and hear the residents suggestions as to how the Town might
best cope with the problem.
`a The letter mailed to all residents was read which stated that the most equitable
solution would be to form an Assessment District assigning rights to all buildable
sites in the Palo Alto Basin. The letter, as well as the attached cash flow
projection and map of the Palo Alto Sanitary Sewer Basin, are hereby incorporated
as a part of these minutes.
Mr. Fritachle explained the composition of the Los Altos and Palo Alto sewer basins
to further clarify the equity of the proposed solution to the problem.
In the Los Altos Basin of an estimated total of 1,572 units of capacity required,
868 were voluntarily purchased through the S.A.D. C4 assessment district. An
additional 151 units were provided by the L.A.H. F1 County District and approximately
another 100 hooked up to Los Altos facilities prior to capacity charges. Thus, of
the potential 1,572 unite, 10119 unite have been purchased or did not require
purchase of capacity. The other 453 possible home sites are not presently guaranteed
capacity in the Los Altos sewage treatment facilities. The remaining units, should
they wish and are able to hookup at some future date, must pay the original $276.00
capacity charge plus 7% compounded annually beginning with calender year 1970.
In the Palo Alto Basin the terms of the contract required that the Town most
purchase capacity in the Palo Alto Sewage Treatment Facilities for all potential
homesites in the Palo Alto Basin. At the time of negotiation in 1968 this quantity
was estimated at 2,075 and resulted in a total committment of $400,000.00, payable
in $80,000.00 annual increments through July of 1973. At the time it was intended
that annual sewer hookups would enable these committments to be met. However,
r ( only S.A.D. i3 and 65, comprised of 520 units, have so far paid the Palo Alto Basin
�r per unit assessment of $450.00. As a result the Town cannot meet the July 1, 1972
oommittment of $80,000.00 - nor the following years payment.
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This financial dilemma is further compounded by the coat of the new Tri -City
Secondary Treatment Plant now, under construction. The Town 'a obligation for this
facility is $270,000.00 to be paid in 12 (twelve) annual installments starting in
this fiscal year with a $33,000.00 payment now due followed by approximately
$22,000.00 per year through 1981-82.
Floor participation included the following:
Opposing an Assessment District: Mr. David Hilbiber, 25915 Elena; Former Mayor
Wm. Rose Aiken, 10410 Magdalena; Mr. Lester H. Brubaker, 27575 Purissime Road;
Mrs. Angie Boissevain, 27181 Sherlock Road; Mr. Don McCouley, 23548 Ravensbury;
Mr. Greg Austin, 27600 Edgerton; Mr. Hugh Marsh, Is Paloma; Hr. Henricue Dijkmeier,
27474 Sunrise Farm Road; Mrs, Mark Hinton, 11571 Buena Vista; Mrs. Ann Spencer,
27490 Sherlock Road.
Opposing current Town ewer policy and/or voluntary assessments: Mr. Gerald Ferrari,
25800 Altamont Road; Mr. Jean-Pierre Damn—, 25856 Almaden Court; Mr. Hugh P.
Webster, 11261 Magdalena; Mr. Richard E. Morton, 12570 Roble Ladera Road; Mr. Al
Lambert, Los Altos, Mr. Oscar Sobel, 28266 Christopher Lane; Mr. E. A. Breyman,
13456 Wildcrest Drive; Mrs. Ruth Feldman, 12655 Is Create Drive; Mr, Joe, R. Herr,
13480 Mandoli Drive; Mrs. June McIlwraith, 13431 Wildcreat Drive; Mr. Pat Bates,
Alta Lane; Mrs. Frank Olgiatti, 25960 Vinedo Lane; Mr. James W. Stiener, 14127
Mirando Ave.; Mr. Wm. Perkins, 26623 Snell Lane; Mr. David Jantzen, 27440 Sherlock;
Mrs. I. Rase, 27677 Briones Court; Hr. Sidney Hecker, Matadero Hills. (Several of
these residents favored .t tax increase or Townwide assessment as they considered
this obligation a problem facing the entire community. Others proposed it be
brought to a vote.)
Floor participation was also heard from Mr. Dick Towle, 26493 Weston Drive;
Mr. Gardner Bullis, 14085 Manuella Road; Mr. Chas. Land, 12660 Viscafno Court;
Mrs. Diane Miller, 13076 Vista del Valle Court; Mr. A. M. Laws, 11210 Hooper Lane
and Mrs. Mark Hinton, 11571 Buena Vista.
Lettere were read from Mrs. Florence Fava, 26691 Moody Road; Mr. Robert Boesel,
26545 Anacapa Drive; Mrs. Mary Steers, 11641 Buena Vista; Mr. Edward Stabbs, 10575
Blandor Way, all opposing a compulsory assessment district. Other correspondence
indicating this was a Town problem was read from Mr. Bob Kirkpatrick, 26470
Purissima Road; Mr. John S. Ewing, 27811 Lupine Road; Mr. Howard Coulter, 26541
Purlselma Road and Mr. Nicholas Fortas, 13020 Cooper Vista Court.
Council discussion ensued and it was noted that it would not be equitable to have
a tax increase applied to those who had already paid. In response to whether
prepayment 1n a lump am could result in some saving, staff noted that Palo Alto had
been asked, but they had not yet responded.
In response to criticism of the contract negotiated, Councilman Davey noted that the
ground rules were different when the contract was executed which then was reasonable,
but that the current voluntary sewer policy makes it economically infeasible -
therefore, the solution is to reverse the policy.
-2-
Councilman Helgesson noted that it is the Water Quality Control Board's policy to
outlaw septic tanks but they recognize ewers linea are not presently available
and the current difficulty of providing ewers. However, there is the possibility
that they might require ewers at some future date. In response to a suggestion
that the Palo Alto contract be cancelled, he reminded them that all the sewage
eventually ends up in Palo Alto at the Tri -City Treatment Plant. Also, as to
whether this is the maximum payment residents may expect, he noted that the South
Bay Dischargers are already investigating pumping all outflow so that it enters the
bay North of the Dumbarton Bridge which would result in a sizeable additional
expense. In summary, he felt that in view of the Los Altos committment had been
satisfied by S. A. D. A. that the current financial committment to Palo Alto was
particularly oriented to the Palo Alto Basin.
Councilman Corbett reviewed the Town Sewer Policy in response to those wishing
the policy changed. He noted the sewer districts formed under the current policy
and several recent large subdivisions that would be sewered. He noted the numerous
unsuccessful attempts that he and other councilmen had attempted to get Palo Alto
to revise the contract were to no avail.
Councilman Davey requested that reversal of the Town sewer policy be agended for
discussion April 6 to assure that if residents in the Pato Alto Basin are compelled
to buy capacity they will have Some indication as to when they might expect ewers.
Mayor Benson thanked the approximately 120 interested citizens for coming to this
meeting and expressing their Sentiments. He noted several worthwhile ideas were
presented and merited additional thought by the Council before agendaing.
ADJOURNMENT:
There being no further business, Mayor Benson adjourned the meeting at 11:30 P.M. to
NEXT REGULAR MEETING: Monday, April 6, 1971 at 7:45 P.M. at Town Hall.
TJK/jp
5-3-71
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Respectfully submitted,
TED J. KLUZEK
City Clerk
Town of Los Altos Hills
-3-
W
DEAR FELLOW PROPERTY OWNER:
26379 FREMONT ROAD. LOS ALTOS HILLS, CALIFORNIA 94022
March 19, 1971
The Town of Los Altos Hills is faced with a serious financial problem regarding
its contract with Palo Alto fox sanitary sewer capacity rights.
Our contract with Palo Alto for capacity in the sewage treatment plant, trunk
lines and related facilities, as negotiated by a previous Council in 1968,
provides for a total payment of $400,000 over the period 1968 to 1973 inclusive.
The contract also provides for our participation in the cost of the new Tri -City
secondary treatment plant now under construction. Our obligation for this
facility is $270,000 to be paid for in installments over twelve years starting
in 1970-71. Assuming that no new sewer assessment districts are formed in the
Palo Alto Basin, we will be going in the red starting July 1, 1972.
At the time the Palo Alto contract was initiated, two sewer assessment districts
were formed consisting of a total of 520 units. Each unit in the districts was
assessed and has paid $450 for capacity rights. In addition, each unit which
has hooked up to the sewer system (163 in all), has paid and is obligated to pay
*e $90 per year sewer service charge. These assessments and charges are the only
sources of income to the sewer fund at the present time and are not sufficient
to fulfill our future obligations to Palo Alto.
Our contract with Palo Alto assures all the residents in the Palo Alto Basin that
the Palo Alto sewer system has sufficient capacity to accommodate 2075 units of
household sanitary sewage from that area of Los Altos Hills. However, only the
520 units in the existing assessment districts have paid for ^capacity rights".
It appears that the equitable solution is to form a "Sewer Capacity Assessment
District", assign capacity rights to all buildable sites in the Palo Alto Basin,
excluding those who have already paid, and assess the remainder a reasonable
amount to amortize our commitment to Palo Alto. Preliminary estimates indicate
that an assessment of approximately $260 per unit of benefit would fulfill our
obligations. It should be noted that the proposed assessment would pay only for
the capacity right reserved for the property owner but would not involve construc-
tion of sewer lines or connection to sewer lines and would not guarantee that
sewer lines would be constructed in the future.
Enclosed is a cash flow projection prepared by our City Manager, which underscores
the deficit problem and a map of the area concerned.
On Monday, March 29 at 7:45 P. M. in Town Hall a Public Hearing will be held to
present background data on this financial problem, outline possible solutions and
to listen to your thoughts on this subject. No Council action will be taken at
this meeting since our purpose will be to gather ,deas and answer questions.
I invite you to attend. It
�Sine�/r// AV
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WALTBR AVN}^
Mayor
WAR/mam Town Of Los Altos Hills
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LEGEND
indicates portion of
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3-10-71 Jhc WILLIAM SPANGLE 6 ASSOCIATES o r♦.... io...... 1. R. 1