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Home My WebLink About67-07 • • 67-.07 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS APPROVAL OF SANITARY SEWER REIMBURSEMENT AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND KELLY& CHRISTINA PORTER 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 Kelly& Christina Porter. 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 Kelly& Christina Porter. PASSED AND ADOPTED this /%_3'1.4) e . o I!0 / '°' , 2007. By: Mayor ATTEST: Ci C1er • • SANITARY SEWER REIMBURSEMENT AGREEMENT This Sanitary Sewer Reimbursement Agreement ("Agreement") is entered into this day of , 2007, by and between the Town of Los Altos Hills, a municipal corporation of the State of California ("Town") and Kelly R & Christina M. Porter ("Property Owner"). RECITALS: A. Property Owner constructed a sanitary sewer extension commonly known as the Sanitary Sewer Main Extension at Stonebrook Court, 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". 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 1 • • 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 seventy two thousand, eighty four dollars and twenty four cents ($72,084.24) plus annual adjustments and processing fees as set forth in Exhibit B. • AGREEMENT NOW, THEREFORE, forood and valuable consideration, the receipt and 9p 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"). 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 Kelly R. R. or Christina M. Porter and shall send such check to Property Owner at 12335 Stonebrook Court, Los Altos Hills, CA 94022. 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. 2 • • 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. 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. 3 • 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. The parties hereto have executed this Agreement effective as of the date written above. ATTEST: TOWN OF LOS ALTOS HILLS City Clerk Mayor APPROVED AS TO FORM: PROPERTY OWNER Kelly R Porter City Attorney Christina M Porter 4 • ! Exhibit A Engineering Plans for Sewer Main Extension at Stonebrook Court dated March 3, 2003 consisting of two sheets on file with the Engineering Department of the Town of Los Altos Hills Exhibit B FUTURE USERS Address APN# Usage Fee 25000 Oneonta Drive 336-29-010 [$12,014.04+CCI%] +5% AF* 25020 Oneonta Drive 336-29-009 [$12,014.04+CCI%] +5% AF* 12321 Stonebrook Court 336-28-063 [$12,014.04+CCI%] +5% AF* 12305 Stonebrook Court 336-28-046 [$12,014.04+CCI%] +5% AF* 12341 Stonebrook Court 336-28-065 [$12,014.04+CCI%] +5% AF* 12331 Stonebrook Court 336-28-066 [$12,014.04+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 5 4110 AGENDA ITEM#7 TOWN OF LOS ALTOS HILLS September 13, 2007 Staff Report to the City Council SUBJECT: APPROVAL OF SANITARY SEWER REIMBURSEMENT AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND KELLY & CHRISTINA PORTER FROM: Cyrus Kianpour, Interim City Engineer�P L-47— APPROVED: APPROVED: Carl Cahill, City Manager RECOMMENDATION: That the City Council: Adopt the attached resolution approving and authorizing execution of a Sanitary Sewer Reimbursement Agreement between the Town of Los Altos Hills and Kelly & Christina Porter. DISCUSSION: The attached Reimbursement Agreement is for the sanitary sewer main extension at Stonebrook Court. The length of the proposed reimbursement agreement is fifteen years after approval by the City Council. Staff has determined that there are six other properties which could connect to this section of sewer main during the next fifteen years. These properties are listed in Exhibit B of the agreement. The amount of the reimbursement from each property is based on the pro-rata share of costs born by the initial investor to install the sewer main plus annual adjustments and processing fees as set forth in Exhibit B. Staff recommends approval of this Reimbursement Agreement. FISCAL IMPACT: There is no fiscal impact associated with this recommendation. ATTACHMENTS: 1. Resolution 2. Reimbursement Agreement Report Prepared By: Richard Chen, Associate Engineer