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BOX'B 95-96
City of Palo Alto
City ~fanager's Report
HONORABLE CITY COUNCIL
FINANCE COMMITfEE
CITY MANAGER DEPARTMENT: PUBLIC WORKS
AGENDADA~ ~yl~l~S CMR:126:9S
SUBJECf: FORMER WS ALTOS TREATMENT PLANT SITE -STUDY
OF ALTERNATIVE USES
BECOMMENDATION
This report recommends !hat !be Coonci! authorize funds 10 be added 10 the proposed FY
1995-96 Refuse Fund Opentting Budgel for coosuItanI services 10 conduct a summary
reapprois;al of !be former Los Altos Treatment Plant sile and 10 update costs associated
willi various options for the long term use of the sile. Staff further recommends that
Cooncil autlIorize siaff 10 investigate the actions which v.'ould be necessary for acquisition
of the City of Los Altoo reIlllliJ.1ng 50 percent ownership of this 'ite.
BACKGROUND
In 1984. the City of Palo Alto entered inro an eigl,t'year lease/purchase ag.-eement with
the City of Los Altos 10 acquire a 50 percent interest in the 13.2 acre, former Los Altos
Sewage Treatmenl P!ant (LA 11') located at !be end 0( North San Antonio Road. oorth 0(
Highway 101 (Attachment A). Funds from the Refuse utility were DS<d fo<: the
acquisition. The agreeinenl .... CO<ISWIllIlated in December 1992, and the property is !lOW
equally 0WII£d by !be City 0( Los Altos and the City 0( Palo Alto.
The agreemetll stipu!.ieS that. if the Cify 0( Palo Alto has no! developed the property as
a refuse transfer 0< refuse processing sile by September I. 1m. the City O(Los Altos may
seU its 50 pertelll in!erest 10 the City 0( Palo Alto at curren! market value. The City of
Los Altos staff recently b.ave verbally eApreSsed an interest in conveying their 50 percent
interest 10 !he City of Palo Alto.
In 1990. the Pub!lc Wads Department began to investigate several options for future use
of the property. 0-..., 0( the options was !he de"e~nt 0( the site as a solid waste
facility. because the currelll refuse ro!Iection and b.auling opentoons yard on Geng Rood
is not consi<kred viable as • long-term option. Space constraints imposed by off>ee
<levelopment 01l one side, and the Baylands A!hIetlc Center OIl the other. restrict any
potential expansion at this site. As !he landfill nears capacjQ and I<mg aIStance bauting
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increases COOllIlensurattly. space at bo!h the Geng Road site and the landfill for refuse bins
slo<age. trodes. and repair and maintenance ac-Jvities on equirmeOl is decreasing
significantly.
Inkne 1991. Council approved an agreement (CMR. 276:91) rorwnsllJting <e~ for
performing a tw<>-pllase solid waste feasibility study. "/De first phase was for on
assessment of jXlI.ential soil and sludge COGtamination at the LA IP site; and the second
phase was b ronceptual designs that included a refuse colJcctioo and bauling yard b
PASCO, l recycling «Iller, a pennanerul>ousehoJd hazardous waste mility and l mini
transfer station. Phase n also included an evaluation of economic and environmental
impacts associated with the deve10pment of the site, preparation of preliminary cost
estimates, and timetables b desiglO. Emironmental Impact Report, pennitting and
coostruction.
1lle 1991 consuItaDI report estlmated the I<>tlI cost of improvemems (mcluding acquisition
<J( the remaining SO perceru OW!ler>bip from the City of Los AIto<) at approximately $13
million. The project would have been consl'OCted in three pbases. Due \0 Ll}e estimate<!
cost of !be IOOlI pro.!xt, staff reviewed the wnceptual design and wants to pursue a
downsized project, as well as other a1temath'e uses for this site.
AI TERNATlYE l.ATP SITE USPS
There are two alternative approaches 10 the Glspositioo and use of the LA TP site. Eacb
alternative bas • variety of options for use. The first alternative. wbicb staff rerommends.
is 10 pursue purchase of the slte for refuse services and storage purposes. 1lle second
alternative is 10 maintJn join! ownership of the site ,.-lth Los Alto< 10 pctentially develop
the site b commercial use or 10 sell the site 10 • third party.
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1lle City of Palo Alto would purcha", and annex the site and lone iI 'public facility.·
Under this alternative, the City bas • variety of options. One option includes nsing the site
... refuse collection and baurlllg yard, a permanent hoosehold hazardous waste facility,
and as • construction staging or storage area for Utilit!<s infrastructure projects (the
Recycling Center and Compost Facility would remaln at the Palo Alto landfilf)_
Approximately SO percent of the useable site w",Jld be used by t..'>e Refuse Fund and 50
percent (4.0 acres) by the Utilities DepartmenL Under this option, the Ref.JSe Fund c001d
either pun;base the site and lease spa<"" 10 the Utilities or the Utilities could propo<!ionately
sbare in the costs of purchasing and developing the site for their long-term con&ru<:tioo
needs.
Should the Utrlities no! use this site as a staging or"". a second option would include
moving the Recycling Center and Compost Facility 10 the LA TP site. Any remaining,
useable acreage cwId either be leased or developed for sale.
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Alterna!jyC IT
'l1W;alternative assumes that the Cities of Los AlIos and Palo Alto cootinue joint
ownership. One optioo is for both panies to develo!> and tease the LA TP site fer
commen:ial 0< retail use. A seoood option would be 10 ..,n the site to a third party .
Based 00 preliminary indications Ihal Los Altos is iruerested in cooveying their interest 10
the C"Jl:y of Palo Alto, and bas<d 00 the City's fuv.:re refuse ..,rvices needs, staff does not
rerommend this alleCllative. It is in the City's beslloog term interest 10 retain the site for
furore operation ol the refuse system, incluomg both City activities and COn!ract
operations.
PRQPOSFD SCPPE OF FEASIRD flY STUDY
The proposed study would include an update of a 1992 appraisal by performing • summary
reappraisal of the site (required In the City's .gre<meDl with I..os Ahos); a revision of the
cost estimates for the two alternative doWIlSize~ w!id waste Pfo.jects; developmelll of •
formula 10 determine the proportioc.ate share of rosts to be shared by LOe Utilities
Dep<mmeDl if they purchase or lease • portion of the site; and a review of an legal
requirements for acquisition and permitting for various 11.... of the site, includlng
annexation lnto Palo Alto, and evaluation of potential fin;mc~~ options in addition to the
three options listed by staff .
. FINANCING omoNS
Should Council Olteet staff to pursue the purchase of the Los Altos share of the former
trealIDenl pIanI site and develop the site, a variety of financing options are available. The
Refuse Fund would be the primary "rer in terms of acreage and activities, and the final
financing option would rake into accoont the possible participation of the utmties
Departmelll. and wouid ueed I(} Iru!ke sense from • financial perspective for both the
Refuse Fund and the Utilities Deparlme!lt. The available financing options include the
lOIJov,ing:
I. Issue Revenue Bonds -The Refuse fund would issue reven"" bonds, which are
secured by the ability 10 generate non-tax revenue, and pay for debt service through
rates.
Adv'p!ages -'3y issuing bonds, payment for the site and improvements would occur
over a 2() 10 30 year period, mitigating increases in rares =MY 10 pay debt
service. The cost of improvements, therefore, would be shared by curreOl: and
futtlre users of services p<ovidcd by the site, which is opti=J from an equity
standpoint.
Disatlvamages -The Refuse fund would incU!" debt, and refuse rates "'ouid increase
over time~
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2. I c 'Purrbw t\&RtPM'P' c The Refu.", Fund would enter into an agr=nI with
~ Altos 10 purchase its sbare ot the site over I designated period ol time. Such
an agreement could be .truc~lred in. .. manner similar 10 the eight-year
lease/purchase agreemenl in which Pa.1o Alto purchased the initial 50 percent
mrm-est ot the site. Thallease/purchase agreement, concludc:d in December 1992,
was financed lbroogb. Refuse Fund rates.
AdYl'n!aees C The Refuse Fund would purchase the site over an extended, but
sborter, period ot time c>"'!Ilpared 10 det,( ;'SUarK:" and incur , .. , debt cost.
Djsadyantai"" c Based 00 I sborIer time period ot paymeDl than for revenue bonds,
•• barper increase in rates would be required.
3. Purchase Outright C Throogh the combined I'''' ot reserves and a rale increase.
purchase the sile and lJl.1ke improvements.
Advaota&es C The utilities funds and refuse fund would incur no debt.
DjsadvaDt.aaes c All outright purchase could include both a rro-JCOon in reserves and
• steep increase in rales. The cost 0( this purcbase would be borne by curren!
users.
roUCY IMPIJCATIONS
There are no policy implications related 10 Council 2ppToval of the recommendations
coorained in this report. Arry actloo 10 proceed with the acquisklon 0< imptemenJation of
I recommended allernative woold be subject 10 further review and approval by the
Council.
nsc",] IMPACT
The cost of this s!udy is estimaled at $50,000; the fiscal impacts ot ~ie project alternatives
wID. not be kno"J. .... until the use and cost data is Ilr<!ated and an implementation plan is
brooght back 10 Council for approval. The CO<! of the study can be r;.mded from existing
Refuse FIdld reserves with no inJpact on either rates 0< other activities.
EN\o'WOm1ENT AL ASSESSMENT
Tnere is no environmental asse<SIIIent required for approval of this funding request. An
ElR bas previously beell approved for .lIe acquisition.
STEPS FOUllWlNG APPROVAL
1. Staff will prepare an amendment 10 the proposed FY 1995:96 Refuse Fu!ld
operating budge! 10 include $50,000 for coosulUDI services 10 perform the SIl!lllru!fy
reappraisal, update the prior studies cost data, and evaluate financing options.
CMR:n':9S Pag~ 4 a(S
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2. ~ will return \0 Cooncil when the sIlidy is romplele. ,.ith a recoouneOOed course
of actio!1 which may include the parcbase, financing and development of the she
Wlder a preferred alternative.
PREPARED BY: Michael H. Miller. Deputy Direc1or. Public Works Operations
DEPARTMENT HEAD REVIEW:
A Tf ACHMENTS:
A· Site Ml:p
CMR: 276:91 (6191)
CMR: 31M (6184)
CMR: 147:4 (5184)
CMR: 558:2 (10182)
ce: City of Los Altos
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7 OLE S. ROBERTS
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Site
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Location Map
Fonner [.4Js Altos
Treatment Plant Site
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Attachmelll A
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O<tclle r 28. 1382
~OKORABL[ tlTl COUNCil
?T. Alto. C.llfor.l.
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PI,jTCnas·e of los .Altos Sewer Treatment Plant Property'
Fer I nuwber ~f years the Cit~ of Palo Alto ~as co~s;dered ~urcha5ing
the-r10W .... ac:ant los Altos Sewage Treatment Plant property located at
t~e foot of San Ant'Onio Road. CiJr intentfon tlas been to use tllis as ill
transfer site \t1'len. our sanaaTj landfill is close-d. Previous
disctJSsfons hZ',,"e not been coop1ete11 successful .. arid ~t.lrchcse of the
j:!"operty has Teu,;ved a relatively 10\11 pl"'ivrit1'. 'With Ue 1r,creased
'ctf't'1tl Clf t.l1.e Solid Waste Jci!:lt Powers Agency and i:our,.;:i Ps policy
Oecision to c'lose cur own sanitary landfill with;& the fOf"eseeable
fwture~ the purc~ase ~f this property an~ its U~~ is i transfe~ sit!
becor.;es s-omewflat more impOf'tant. As a !"'~stllt. we tlave reopened"
di5c~ssions ~it~ los Altos ~fffcfa1s and ha~e begun to explore a
posslb1e p'J..-c'hase i~ s,ome detai l. .PrelilJlinc:r,r appraisals t.av'5: be-en
done~ and sorre g.eote<:1'lnicGl stlJd;:e~ hay€. be~1'l perforr..ed on."tr.e property
fn order to help estabiish fts value and 1'~O alert us to poter.tial
proble!O;S. regardfng its use is a transfer st;;;tfon. Out" S.xfget and
Res.ou!"ce ltar.agetilellt 'Department is preparing a: preliminar..:; Hrlanci'al
analysis iCler-titying the fmplic.a.tfons of such a ~;Jr-chase 011 th€ Refl,l:;E
FUrjd .. i!nd th€ Real Property Management Division hs.:;. begun iU \I;ori to
prepare an aC4uisition prograr~l for Ulis pf"o~rt)'.
~eighr,odn9 jurisdictions and th~ JPA are being kept c.1ose-ly c.dv'fsEd
and h~ye been irlvited to jG1D L!S !fI working out ~et!li15 end GS:-S for
t~is proposed fac-nity. I w-ill keep you i.L'lfomed as t~i5 project "
proceeds.
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Cft)' rnager
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HOHO~lE t!TY tOUNClt
Filo Altc. C,liforpf.
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Acg.;sitlon or f~. los Altos Sewage Treatment Plant -City of los Altos
~ers of the Councfl:
TWits is an fnfOf'matfcnal report .. and no tour-en action 'is reQuire-d.
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Sometfme 1'90 tne COYIl:::U ... as h(o-rlned that ~taff 'JrfaS engaging in diy.ussfor\s wit~ Les
.J,Hos regarding pa10 A,to ac.ql,Ois;tfcn of the fo.r:m~r llJs Altos Treatment Plant.. Tr.e
treatme.'1t ~la"t h located ;at t~e end of S~n At1tonfo Eoaj j'.:st outs1de Pal DAlto CHj
l1mHs.. v;:s.cl;:Issions. a.re co.ncludtng lild an agr~ernent ra.::~otfated by staff is ex~ected
to De presente4 to the tcs Altos and Pa10 ATta Clt~ Councils 1n tne near fut~ie.
Summary of rentatf~e Agre~nt
As presently s-truct~recl-, the .agreement is SUiTjl'I102H'i2ed' C!s follo ... s:
• Fa10 Alto will pUr"Cl'lase a 50 percent fr,te-rest il'l the tlqirteen plus acre site
clJer ~!'. elght-yeu period.. Annual pa)'m~nts vll1 be SlSOs9.c1) refIectfl'lg a
U.5.4(\ ... E25 plJrcilas.e ,price at 9-1/4. percent ..
I Pile Alto vi11 be tfle cantr,olling CW!'ler a,"ld wfl1 Oeclde on the propert.)'t-s
IilSE (W" cH'S~asal.
• if ttle prlJ,p-e.rt,. will be used (Qf' a solid rehse transfer cetlter. P~la Alto
wi 11 negot i ate a 'Sale or-rental: agr2ement )('it 11 tne de'w'el oper /operator c:f the
c~nter~ Tne only limitatlons on the$e negotiations are~
1) los .... lto'S will be guuanteed the! rfght to purci'lase c.ipadty rigMs
hi pr('opcrtforl to Palo A1t<l's pOJrc:hHe. e.g. 32 percent 0'( what Palo
1.1to purcl\ase.s,;
2) ~et p~oceeas fram the rent o~ sale of tne prDpert1 to tn~
developerl ~eratCi!, wil i be di!itrj~uted eq\Jally betweel1 Palo ..... lta
aM los Altos;
• 'tf Pale Alto. det.ertltne5 It'lat the site is not appropd ate for a sol id ref~ se
tra!'1sfer site. Pilo Alto rna, utilfze Hs procedures for sale of the pro
pertJ. a.nd the net pro<-eeds frJm Ue saTe will be distrft-'Jted eCl:Ja111
bEtwee~ Fa10 Alto and los Altos.
CIIP.:146:(
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If •• nefDg Of Pul"(~".
Zt h expected t~at fnt~erEjt .!(ct.lmuhtfons fn the refl.ls.e fund win ~ $ufffc.ient to
cc ... er the ef;l'>t iMual leaseJ.Durc.has~ p.;.,;;ments. ~M'lY ftlt\tie renhl Cl!" sale re"{el"!lJe
realhed frOl'll V.e propert,. !,r..ould' offset the ref .. s.e fundls !cql.lis'ition costs.
fe •• fbllltl Studt
J.. prelll!inaf',)' feasib11H.1 stlldj' ~u cOflcltJded tl'lat the site-is capabl! of eaSil.1
l'lar.d1f~ refw'Se fron:l Pile Alto al'ld tos AltOi. Should' t~'is leasef;'lJr(.hase igrEeme~t be
cGnsurtrnate-d .. Palo Alto win ha .... e lVafTed itself cf ~lle optior'l tQ deel win. the long ..
tt/"'ll solfl! rerllse: probTem. Stiff is currEntl, preparf."lg J: Request for Proposal (RFP)
to obta11 tha nece:ssarJ' expertise to exa!l1~r.e the solid refuse l'la!'\dHng feasff)flft.1 of
tl'1fs site and ('VII!r iitertldthe.s h grut~r Q'etail. T~e proposed lHse/~urch(l5e
J..gree:nel'lt and iF? (or consultant services 'Will be !gendized for CouncH actf".1 fa tl'1e
near futilt"e.
cc: Ron GrueowaJd
Act!ng tit, ~.n.ger
City of tos Altos
CMR:145:4
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""no 28, 1984
HO~QR,I!LE CIT! COiJIIC!l
P.1. Alt., C.llf~.l.
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kgvhltlOtl of f.,..,.r Los Altos Sewage Treatment Phnt -Cfty of Los Altos
~mb!rs of t~e Cour~ll:
Bact iV'OU ncI
Staff Report dated October ~a, lS82, [~R: 55S: Z) hf.rmed Council t~.t st.ff was
hithtfng dis,uss;:.ns ...,1th the CH, (j.f tos .... ltos rega;:ling tile ac.qu1sftl~D of t'tle'ir
for.ner St'ltflge Treatment Plant for !'ossib't fLfh:re use IS I solid waste transfer
center.. The J9ti3/S4 Budget message ll':lformed COIJr:ti 1 of the incl'''!siol'\ of funds h t~at
bud~et for the acquhition.. Staff Report C"'R;146:4 indicated tl"lct neg~tiatic!f1s 'Wit' ..
los ... ltos 'WeN! COM:l~di;'l9 ;and B tentative agreement ~!(j been reacl'1ed ..
Tafs report forwards the agreement negotiated b.J staff fo-r CO'Jocll C·:lnsider .. tfQ;'1~ Tl1e
los Alto.s CitJ' Council apprc\"ed tl'lls agreem2fit on Jun! 11. 1984.
lise of Los Alt", Sewage Treat ... nt Plant Site
Thoe [\_~_ed U plan fCX' futtolre soHd refwse d1spo~~l 'f1as recorne nore. fmpo-rtant is t"e
landfill nearS capac H, .. One <ernathe is t'l l.t"tili?'1l! disposal sites located ovtsld~
Df ttle-lrlJilediate area. To utiHze sue" OIJt111[lg d:isposal sites i transfer station.
-whi'c.lI trensfers refuse frO'r.! small truc.i:s tfJ ruc.~ hrger transport truch. is
neces$ary. A transfer station liaS recentl, opened h Salll Plat eo County and is similar
to .mat .111 be ~.qu;r"~ 10 Palo Alto.
The former los Altos Treatlnent Plant site. owned' by the Ci ty of los .,1t:lS at tne end
of Sal! Antonio, Road. has beoC!n CCHisidered a possible site for ii!I fU"ttJre transfer-
5tati~~. A pr21imfnlry analysis f~d~c3tes t~at tne 51te is capa~1e of 'f1andling far i.
excess of Pilo Alto"s. los A.lto5-'" and Stanford' DnhersH,·s refusa g!!neratio:] for tfle
fl)("eseeable ftIture. As frld1c~te~ in 't"'R:145:'(. staff is. preparing a RE':tuest fOf'
P"rv,PDsa1s to cbtah tt1e expertise to eU'1II1ne the soUd" W3!:t! l',andlStlg feasHdHty (If
this s.ite an~ other a1ternatives i~ greater detail. Whi1e further 5tu~ies ~ay lead t~
Dther 1PDf.e desirable sHes. it is. !o'vantlgeolJ~ fo-r the City to obta.iI C(l",trol of at
least one-sne that is capable cf meeting Us need's ..
0IR:310:4
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'ropO$t4l.'5e/P'"<~'s. Agr.emeot
A. .ptoposed luu/Pl.lrc.hlse Agreement is attacheci for Count" consfderatfon.. Ttle terws
of t~! lelse/F~rc~as! Agreement a~e summarize~ f~ t~e attached t&ase/Pwrfnase Sun~arl.
Ind ,.,r •• peelfleall, dl"y".d bel0· ••
During th'e -·fj;.t tisht 1O"s of the agreement, the tity of P,l. Alto will P"
$280,943/1eor. After the eighth year, title to tfle pro,ertl will vest eq,,,l1y !o t~.
(itl of ,.1~ Alt. and the Cit, of lC5 .oJtcs. The l .... /P.rch ••• Ag,. ... ent will g\;.
tf\e Cit,. Clf ,,10 Alto c.ont.rol ever use. andl.x-dtsposi~Jon or lhe. sIte t.hroughout tOO
.ft.r the eIght year lus.!pu"<hase poriod.
Should f.l ~ .. 1 to decIde that the s1te fs not tfe5frtd for I transfer statTon. the
per.pert) ~o. be soH ,nd t~. ~et pcrocuds of .". onceated equa", bet".eo P,'o 'Ito
and los Altos. Should. transf.r .tatlon be built, Palo Alto will be the le.d 'gency.
Los Altos Ylll be ~ar.nt.ed the right to purchase the Tesser of 1) 38 perce"t of
Pllo la,'s piJrchas! of UP5C.lt1 rights Of". Z} 28,.000 tons annua'11_ Re .... enve from
~il!' Gr rent" cf tfle ,itt-to the transfer $tat~on de'leleope-r/operator (..m~ch can be I
private ,pait.1t joint poW'ers autoorit,. etc.) s'1'lall be shared eq'Jally tletween. los
Altos In~ ,.10 Alto.
It iI~purs that interen on re-flolse fund reserves will be sufficle"t to make the e-ignt
Innual payment, al"K1. therefore no increas! hi ref~se f'!It!S will be r24u1red to pa.)' fer
the-Ic~~tsH_f;:m. hlJ fuhre rental Of'" sale rellenue recefved s"ho'J1 cf be rebrne:1 to the
t'efvsl! fund' to (ompensate t~e refuse fund for its cC'luisitfon of tlri'is s.ite. tHelltise,
III the event that the propertl is wse(J fo-r par}: or oSleo space purposes, tf1e ~neral
f~nd should' iefrooJf'"S.e tPle refuse fund recogl1izinq LIse or tM Nfuse funas for
acquisition.
£.vfronGent Impact Assessment
App.r.onl of tl:!1s a9reement does not constitl4te a project Lmcl'er C€QA. Ar.y pf"oplXed
develOpme~t of tn~ st~e ~ould require an enwJ;onmental fmpa:t assessment.
Stiff Rec ...... ncf.tI ons _
Staff r~ommenc!s tftat the Council authorize the Mayc~ t:l stg,n. the a.tt4~ned
Lease/P~r,ha$e !gri!ement for the leaselp~rc.l'los.e of the former los .... Itos Se'.lo'a,ge
Tr~atMent Pllot sIte.
_R[I!2ctfo1 Tl
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Jra-" . \)i n. ~naT:: leal Esta e
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1I'1llil.r1 Zaner
Cit" fl!anager-
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foraer los Altos s.w'ge Treatment 'lant Ac~"J,ltf ••
le.sorJSel1e~: tlt1 of los Altos (los Altos]
Te .. nt/PUrchlser: Ctty of ,.,. A~t. (P.,. Alt')
Prealses, ll.Z! aert par,el at eo6 of S., Antoni. Avenue (n •• r C"'1 ~.nu.). See
r.ap lttat~~ to l~,s~/?wrch,se A~re~nt
Uses: Sol'4 ~ste tr&nsfer sltt; park, recrelt~o~ and Q~eD spate; or ~nter'm U5es
pen41ng d.,.lQP~nt.
Rental/Purchase Amavnt: $lBO.943fy •• r for eight ye.rs [B.sed on $1.540.62; pr.sent
.. 1 •• It 9.Z51}.
Tale to Prm.a: O)Jrln9 the eIght year lease/purt"as. period, title remains I. Lo.
~tOS. Subs.quent to .lght~ Y'''. titl. ve,ts equall! In Lo; ,&1t05 "d
P~10 Alt<l.
MlftJgeme.!1t end Contr;;rl: PJ'o !l..ltoO sl\all ITtc11"1age BI'>t corotrol U.e. Pre~is'!;!s. i!")c-l'Jdfng
the r'ght to ~ecfde upon ~S~5. de~'g~ and construct1nn of im~~o~ements. a~d
4fsp~;tto~ of the Prem~ses {los Altos to be yro~id~d an oppart~nltl tQ
.... !'ViEM arod (.~nt on C'1ans' ..
OispO$ftion. of Pl'e'Crises--:' If ~I.l.". AHo decides tho! Premfses ate not suHa'b.1e for I
traf.lsfer stat-lOll Ctr ethel' reflol5-e 'tianC:lil'g htiHty .. M par'k. (l.r opel:! space
purpO"St~ and. t<3 be. sold .. 'i1'1.1) .Mlo's. Pf"oced;;(';!S for s!l1e of SU1"~lIJS
p~o~~rtJ will be ~sed. The ·net p~o'eeds snall ~ s~ared equa11, betwe~n
¥i'~ Alto a~d Lo; Altos, subject to los ~1to~' rig~t of fi~st ref~sat tQ
t"2p.urc.lIase "'0 ,Jto"s SO'S sl\are tas~ on at':: a.P9fi~sal aoeLle109ed ~1 a
~tuallf igreed upon M~A~l. appraiser.
If the site lias {lilt been cieye1op~ for 1 C'ef",se triinsf c !'" or pl"'ocesslr'~ site
'Wft~i. 15 y!ars and decides rrot t{J: tis-pose of it. Los ,l.itos ;\lay elect to
~av! Pala Alto purc~ase l~ ~ltos~ ~O~ share based on SO~ of the th~n
~ilfriH't tr..al"'tl1t ViJ.l~e of t'he proptrty, is detennir.ed by "t~ l~pr!.1s/!!1
cte ... e1!)~ed' by & 1l'Iutua\11 ag1""ee:J upon: 'M.A.t .. ap.PfI~se.~.
Deve,.,. ... nt .f So1l4 .ehse 'reject: SMu1d the Pr"",;se, be .",d to c!.,.lop • so1i~
refw'Se t.rlnsf~r staHon. it s'h.n ~ Ij'e..-alcped !:II' a joft1t ,powers c.LlthOrlty.
~O-n-p('offt (.orporJtlcl'l c:r othEr tAlrd part,. ~e~eloperlop~rato'r ..
h.lo .... ito sfu1) nesoth.t1! the terlll$ of sale-or rental of Premi!-t!s pro)'ideo
t'Flat:
-2-
• t., Alt., fIo'Y pur<~ ••• "p t~ tile l~s, .. Dr 3Z1 of P.1o Alt.'s p"rc~,.,. of
capacIty 0<' 2>,200 tons Innu,l1,; upon the same to"'" IS P". Alt.;
I P,IQ Alt. and lM IUto. sh.ll M.a1l, tgree 0' the ,,'tal to clI'rged.
If Los Altos Ind ',1. Alto cannot .gree on I reotal the. tile Pr",,!5.s
sh,lI be orr.red for .. 10 t~ the de •• ' opor!aperator;
• If 501' to deve1eper/operatof', the sl1es pr-1.ce wnl be set It the Cijrrent
market ,,'ue •• det.nof.ed bl mutu"'l .,reed upon M.A.I •• pprai •• r;
• .cet prcx:eeds Of 1"1 rental ,r sale Ifill be tlfst,.t~uted eq~i!:n, bet .... ~erl
Palo Alt. and los ~lto5.
SUb'etUeg: P.l~ Alto NY 'U~1"5. the Pr..,!, •• for pucpos •• conslst.nt "'t~ the
agreement.
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Frojec.t: kquisit'(lQ-tos Altos
Treltment 11ant Sit!
Projett '0: '-'-I.os ~ltos·B2i\1
T~!S LEASf/pU1ij:HASE A.>P.Ef~E~T If rode a'ld ont.,ed foto t~1s d.y of
• 1964. ~, and beheen the (it, Gf los Altos, a iTl.mfc.fpal co('poraU()n
T"i!SSOR'). aM t~e tHy of Polo Alto •• ""nltlpa' (orpontlo, l'TEliAlll').
RECITALS
I. l!SS(J!I OW11S propertl. f ..... er11 us.~ IS • sew.ge treatment pl ant. Sa 16
propert, is spedflC!111 descrIbed and s~o"" t. hhll>lt A. Toe property is
no r01'1ger.needed by lESsoo. for I se""'a~e treat.Q'l€nt ,p11I"lt.
2. TE.NANt desfTes to lease tPie enUre site and" acquf re I fifty ~rcefJ:t fee
interes.t fa. PROPERH to" p"~ide (lJtloire pubHc purposes includi!'l9. but not
ClectSurili lfllited to" I futl%re solid ref;.ls! transfer site.
NOW-rK£RSF~E. 'h consid"eratfon. of tnes! pru,;ses" the putio!S 'hereto agree" as
follows:
!ubject to the teit"1$ oud cooofttons set fort" henh. LESSOR 1eas'H t(J TE'NA~i
that cortoi, p<'opertl (P~E~Is!S} destribed anj sho~n io h~lbit '" ..nfch exhibit
is fnc~~por.t~ ~ereil and ,~de a part "erecr.
TENAl(! ll'idy. tl\rou~l'tout tne lease/plJfcl1ase pflase of Uds agr-eement. IS suc.n phase
is defined to Clause III {HRM/CIl'tMENC(i'(£IIT}. U~ t~e P~£~l:;ES for" va1fd publit
pur-poses tn'ludir:~9. blft not Decess!ril,. HFllited h; a sol;:;1 waste transfer site
10M ~!1ntel'\anc.e. yard Q(" oth.er reflJ'S.!: procE':ssll'l.9' t.ls-es .. PHt. and rec.reat'o!".t at,d
('IP2!\ spac~ ('of1sHvation Of" inter-fll '-lSU pendfng development of POl:E~iStS.. TE~=.,'n
a.grees ti'lat 1t Yill '[lot vocate Dr abancon tne PREIII.ISES during S!lcl:
l!ase!purc:~ase phase of tMs agreement. Stoiould any pa,rtfon (H" al1 of tffe
~~lSES, as ST:own en Exh\!z.'it A, 'be devoted to ~en spate: or re-crut'or.a\
purposes ape II to Pale .... Ho res 1 de.nts. TENANT agrees not to d'eny e~\1ha1ent
access ta resfcSents of the Cfty of tcs .AJtos.
Tbe luse/purc'hase phas.e of t"'rs .agreement shal) comn-..ence on the fi rst d~$ of
the ll"O"t~ following t~o Signing of t~is .g .. <~nt by bot~ USSOO and TE'iAST and
shal' termi'n:ate on t'he t1gl1th tat~} annual ln1'11yef~ar1 date of the com.lle:nc.e~'1t
of t"h agreement ul'i1ess sooner ter.nirllted .as set forth i]1 (huse-JI (OPT ;OH
TO PURtI\l.Sf I.
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n. RE~TAL
tID pay to U:SSOR, as rer'lUl for Ue use ar.d occtlpanc.1 of the
PREMIS!,S durtDg the leas~'p~r,~a$e phase of t~ts agreement~ aA a~r.ull amount
equal to $280,943. S. U aonua' rent.l raY".eot. .~al1 I>e pal ~ .. , 0<' before
the cl),":IT1e~trnent date of tJrits. agreement, as se-t forth fn Clause III {TE~I
(OMME~E~lT) abo¥e. and on or before t~E annu.l annf~erserl of the
t~~n~ement ~te throughout the lea5e,purc~ase phase of t,.fs a9ree~nt.
Sa!! ,ental payments s~.ll be re1uced by $16l.00 per rrooth 50 10'9 IS t'.
lel'Se between l£SSOR and JrJternatfonal flutronfc:.s .. Inc •• is h. effect aoo
5314.00 ¥e~ IOnt_ sa long as the least betwe2D L£SSOR ,nd V. Joseph ~ntavan
h h effect. ,proYfd~ holtlt"!'ver, t~at satd leases shall teNll!nate 0I'l or
befl)f'e Septe~l!:r 3-0, 1%4. Rentals .collected by T£NA~ !tJ~sequent tc;
Se?tember lD, l~ , •• tCordlnce .it~ tllus. ~ll (~~GEKE~T AND COMT~_ Of
PREMIs{S) .~.1I I>e split equally l>et"" •• LESSClI and JE""~T .nd ?aId to
LESSOP., (!J: I:lrrears togetflel'" wft~ the bas!' iln.nuat rental MIOUnt set forth
atove~ lite payment d'Iarge.i or other surctlarges frnposed ·lJpon subtenaflts
sllan .at !>E fnc~u~ed II additlon.1 ront due tESSCll.
lEWT slial1 also Ilay to LES~, as ad'dition.a:l rental ~ereu.,d'er, the am\l\.tt1t
Qf a.ny I'er.tll ii'\tel'rwptlGQ or u<ie ard ocCI.IPa.1'\C1 inSlJre.nee prelt~u!!'l$ .. 'if art)',
pa1d by lESSOR for renf;al fnterrllption 01'" use arid occvpancy f:15t.1ranCe
d.,«ibod f. Clause II {INSURANCE}. proYl~.d tnt( TENANT shall ~". the
option of procuring s~c~ 1~sura~ce It its Odn e~pense i~ the ~ame of lESSOR~
lEJt.6..'U shall Pl1 such additfolfal r-enta1 re-l ati"9 to fnsurante to tESS~
wit';. t""nt1 (lG) days of sub~iS5ion by LESSOR of proof of payment of such
f~suiance premiums.
£aeh i;rll''1ual rental plymen·t shall constHtJte <ortSld'e.-atiolJ fo'" TE~.G,~T"s tJse
l:td" oc:cupaIKI a.nd the cooti!1ued qui et enjoyment of t~e PRE:JIIS-eS tot" the
twelve r..::mtil period subseqt..!ent to t~e due date for ~LK:" .annual payment.
li~SOlt !1'!d "E~ ilgree that ~lJC.h rental; represents the fair renta"l value of
the P2EPlllS-(S cons.!d'ering tne f1"~erest reser"¥~ by LESSeR 1$ set fo.,.t~ i~
cta.,. i (CO~VETANCE fF fEE/TITLE TO PROPEUI). and further con5i~eri r'9 the
il5eS and purposes wl'Ifc" tiJ4Y be ser~ea by the PR:E,..ls.ES .end t~ benefits w"Ikll
111111 aec.rue tfo;erefrOfI! to the TENANT, lESSOR. the general pubHc and otner
p!rsons ~si~g the PRE-'ISES.
s. ~D~':>Prht(ol"l/Pivment.
he .. annual rental payment liS SEt forth iA $ubpar-agf'aptt A. above 5~a' 1 be
p.l~ 10 lawrul ",ney of the Unit~ States of "".rlCi to USSOR at the
addre •• and location .5 p'o'fde~ I. Clause XVII (NOTIC(S}. Attention: City
Manager. or StJc~ otner place is lESSOR a!'ld 10lMT may mlltua1J, agree ..
t. Rentel Abatement.
the re!'\ta.' snal\ be abate<! prO?ortiof'lately d!Jr-iog a~ll period ift ..mit". by
reason of any damage Of" destl""..Jctiol1 or parthl taking by en1nent domai~
(ot"er tto.an by <.ond'err.natiof\ of the erit~re PRE"'ISES whicll is. provfded' (01' 1~
-()au'Se IIY {£~Ir£Nt OOrt.AlIIO. tl'lere is substanthl interfe:-encl!' wit~ the use
and """p.ncj" of the PRE~l;;,S or any part thereof by tne TE~ANT. h the
9 r oportfon ~rc1t the portfor. o-f the PREJIIIISES rerdered' lJf'lus.E'able bears to tfle
wflole of the PRE~IS.ES. Su<.h atatemen~ s.hall conttnue for t"e period
:
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commendng 'Wit" suclt damage, d-estruc.tfoll or tal:.i.~g Ind ending wfth the con
p1etrOIll of repair or recoostructlon.. rr.; t"'e e~ept of any S:.IC'-dar.lage,
dl:!strucUOD Of" tltfng. Uts I:greemer'lt s'naH ccnU"LJe !II hl1 fOi,e and
effect.
Y. CONVEr~~E ~ fEE/TITLE TG ~OP£RTI
A~ Tit1, to Property ~rf~g Term of Agreeme~t ..
Title t. th.lPRfM1SES shall remail l. tESSOR during t~e l •••• /purc •• s. p~.s.
of this agreement.. nth to III 1l:\ProYe:TIents. fhtt..!res ar'ld ii!.?pIJrtenances
... de Of" added t',and title to .11 PErsona' property placed f. or about the
PREMISES by TEIIAAT .~.ll remah in the TENAIIT during the 'eas./purcha ••
phase t)f thfs agf"!'etl'lertt.. hi ('of'lstderatftiPli of the ether terms aOO: provhftms
IIf thfs Igreement, titl. to .11 P~E!IIIlS-ES lnd tmprcvements thereon. aid fil
ture. and appurten.nees theeeto, s~.ll .e.t h fEAANT Ind leSSOR fa .ccord~
ance "H_ $ubplrlgropn B. bel,.. It the end of Ue leasefpurchose p~". of
tillS a~reeiT'oe:nt other'thail as I re-salt of cfefa~1t by l£1tAHT. U:SSOR sllall
t!h any iIIcHon:; and execute ilr'lY gf"ar.t ::leeds Gt" ~t~el'" documents as may b.a
i\e,~ssary' Of" ap?.("Qprh,te to con,firlll f.M ... es.t sut:lI. t\t~e t" TEAAfIt'C a.l"ld l~SSOR
.s set fort~ below.
B .. litTe to 'roperty It Teralnatit>n of ~gre~ent.
'-t ttle eOO e.f the l'!Zt'S-e/purt"has.e phase of tMs agreement .. or uptln TE'{~~fS
ex.ercise of its optiOI1 t~ p'Jrct'IcU! 1d accordar.c-e w1 ttl Clause 'Wl (OPHO~ TO
PU~CHASE). l'ES~ arll1 TEl'tANT sl'\al1 e!ClI 0\riI;'I an tJndhf,je-d' one-r,al f interest
fl PR811:ISES IS t!'nant5 ill -common. 5!J~ject on11 t" mattets of p'JbHc record
as set fDrth ,,, Preljmin~rl lit!e Report 'lfumber ,t~ 467453 isS:J€cS on
September I, 1982. b1 lIesterl Titl! I~stJran-ce Company and any st.l~~que-r:t
.Ilatters 'Wf1fcll have beefl ap,Proved' .. hi 'Wfftfr.g. bl 1E"NANi.. tfSS<JI\ ... arrants
tnat tne only tJnreccrtill!d m!tters affecting the PAEfIIISES iBrE I.} it lease
dat~j September 30. 1982. to Internati\ln:al Jl;utronlc.s, iii .copy of ,."'l'iell ~as
been prpwided t~ TENANt ind la} a Ij74 1~ase to W.. Josepb ~o~ta~on ~i~~ is
c.urrently Oil a IT'OI'Ith .. to".month boTd'i.ll{~l'", i cOP1 Gf -.frfcll has als:) heea
Frovfded' to TE~AIIT. LESSOR sh.ll continue to be r.sponsible for t~.
,dmhhtritfon of these exfsthg leases fnc1ud1ng V.! (ol1ection of rent
a~ e!1itlrIng vocatfon of the P~EII!JSES b,1 5!HI ten.ant's llPOr'l tr"le ttrtillflat i-on
.of the lea:;es. whicl! sllal1 be on or befo-re Septwer 30. 19S4. unless a!1
extenstcn of the terlA is agreed to by TENOO. USSOq shall take a~'y a~tfon5
~rld -exe::::ute any grant O".e~s or otner documents i!S NY be necessary or
lppropriate to conffr. lnd vest tit" to P~EMI~ES equall,)' i~ the TEKA~T !nd
. t£SSOR as set fcrt~ above. Safd grar.t dee1 or otP\er document s~aH directly
or by referer\Ce. iocQ("'por-ate th.e pro-.''islons of Clause. 'HI (lIt"ltAGEKO!.T AAO
(>O~'TRot (J' PR:EM1S!S). LESSOR .150 ag.rees t!) consent to cte--a"U''lultion of tne
sal! fl"'Ori the Cft, of Los .. Jtoo5 arld annexatio!1 of ttle site to the City of
Pal!) Altel .. UPQO ()(" after SU(Ji vestf~~ i!! LES~ and TElltA.tft.
,I. O~T101f j{) PURCHASE
TfAA!IIT sl'Ial1 have the cptfon. on any Mohersa!"'j date of the CQliitlericement of
this. !:greement t.hrou9~out tl'le lea.s~rp\.!rc~ue-phase: of t!'t.h CIIgreemel'"!t. to pur
chase its fifty perceot (501) Inte,,,t I. the PREMI~ES. including ,11 Irnpcov.
r~Qts. upon payment of I" optfo~ price eqva1 to t~e rernei~ing prfn(;pal payments
asS1JI'R1ng thilt the re:1otll il."nount'S set fo-rt~ is C1 ause ['t' (UWTAtJ. excluding al"l.f
amounts t01" rental conttnl.:!ticn gr rental 'nte-rruption 1nsuranc.e:,
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tonst\tytt amortflitfon of int~rest and prfn,1pal of $l.~O.5ZS It ci~e I~ one
'ourU percent ".25S) fnterest for I perIod of .!9~t (S) yous. lfSSOI! sha1l
ta\e an, ')cUCI'Is. and nt-cute 'a'nJ grant Geeds or other ®cuT'ler,ts I~ Fli:.:J be: netE'S
Slrl or approprIate to confl r. a"~ vest title to PRE~lSES equalls ,. the TE!A~r
004 lESSOR is set torth \. Cl.us~ ¥ tCON~E'~CE OF ffE/TITlE T~ PROPER,!). SaId
grant deed' or other document shaH directly o.r by referen(!,. fncorpC>-rate tne
I'rov\sl .... of thus. VII {)lAAAGE>IE~1 A.'D CO.1RDt. OF PREMI£ES).
1IJ. MAAAG91UT],NO CONTROl. OF PREMIstS.
D\lrfng and after tr,e lUil!/p1Jrchas'! p~ase of this agreement. TEr.lAA! shIll nlanage
004 control the PREl'IISES, .. c~pt .s may be speciflcollS Ind!e.tea i. other pro
rhfons. of ttiis agreement, fDC1'J~~ng the r;g'ht to c!ec.fde upon t1Ie \!seS (If the
PREMISES, de.fgn and constructIon of lOy !l1IiJro.ements to be bui I t upon t~e
·PRE~ISES, and di.pcsltioQ of tho PRi:~ISES shcuB the PRE~ISfS b. <leemed un<uit
able or surplus t. the needs of TE~A,~T, provlcfed that LESSOR shan be prcvi~ed
the OPPOfttir.ftl to review and c.omme!lt on phns for use and development of tne
PREJlISES.
~. Oispositfon by TE~ANT
fa the event ttlat the ,pREi4IS-iS. or a porti·on thereof. art! deemed by TE"'MT
to be. ur,t!esfrabh:. u.nSlJ.ftable or stJ.rpllol5. a.nd to be sold either durfng O(
after tne Tease-/pur(1'lase p~ase of t~fs ilgl""eement,. lENA!H shall cQI;,pl, wit"
its procedure.r. r~garding Sl1e of surpl .. s. real PiOp-erty; however. \ISSOR
shall. have the right of first refwsal to repurchase-the rigMs grar"Jted t'J
TEUNT upo.n the: p6ymer\t to. TEfilp-.NT of an a«-.ourlt e-;'Jal to. one-half of t'he then
current Jftarket nlue Q( tne PRElillSES IS deteM!lined by il mutuaH,. agree-j "pen ".J, .. l~ Ipp.ratSer-aS5-':Jrnir.g a .'i~l',tst and best ;,ISoe of Hght tndus.tr~i!:l "Usa: fo·r
.the nOll crcs:s·t1atc.hed portio I) and opetl space (onseLl'atior1 fo·,. Ue c.ross~
tla.:tched port.~OD as. sho-,m on Exh1"ba -.. les.s an.J amounts. ..tr'!(.R ll'Iay t'hen ~
d'Je lESSOR is "akltht.ed usir,g U'le amortizitfon data provided {r;; (iause WI
{09TlCK 10 PURC"'-SE}. Should ltSSCR .'ect nO:: to re~urc~ase H.N~~T·s
rights. TOWn ShaH proceed to dispo$.e of the PRE~IS-ES. or portion o.f
PiE~ISES, and shan PO! to USSOR one-~.H (112) of any net proceods fro.'
$tJc?l sale plus an~'t relllafllng princrpal 100 accrued: fnterest .t.fdll ma-'y tner<.
be due lESSOR c:alc .. lated w.sfng toe ."art.i"zatioo data pravlded fm Criiuse VI
B.
(OP;IO« r~ PURCHASE). .
hes not ~'ofe' oped t~e non-tross-~atched porUotl of
PiE~lSES as I solfd 'Wast! transfer site arnf malr'tt!mar..ce yard' or otner :-efrtse
processfElg wse witJlll fifteea {IS) years of tfJe date of t~1s Bgr-eemer.t.
lE.S~ mal. at any tfme therea.ft~rll elect tl) (.onvey its fifty percent {SO":.)
lnterest h the PRE .. lSES to l£"-' . .rT Ind TE~~'! shall t~ereupon pay t, U5s()~
alii amolJnt equal to 50S. of tt':e tfleQ (urrent market nlu! of the said pc.rtion
of tfJe PREtI'IIS-ES is 6et!NDir.ed by .. n;tu~ll, agreed upoo /11. __ .1. designated
a.pptl;:~r i.S-SUfi,'n.g 2. highest. and best use. of llQ~t \!'ldu-strh.l use fOi th.e
non crOSS-'hatcned portfon and <:lperl space cons€rYi!!tfO!1 for t~e c('css~llatc~ed
portion as s.'hown 00. '[xJt.l't!i"it __ $hO'J'.rt ttSSOl\ male. S-l.Itl\ an e1e'Ct'o~ .. H:t\~.~T
may. ia-lie:J thereaf .. sell the PiU:~rS£s. f" acc.ordance ...-ftJl:! su'bparagrapl1 "
above.
(. Terzs ~f '\lfchElse and ttlst e-f ~ptl:ha'
fll the Event of a dfspOS1tfO!'l in accord'an.t;e witt'! eitl-,er 'Sli'bparagraph A. 0"
B. abo,,!. the <05t of the appn.1sal $0",,,1 \ be tlorne eqo.;a1l,. by TEN.Ji..IH ar.d
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G\ 0
lESSlll!. Should tE~ and TE ..... MT "at ~ •• ~T. to ',<eo C<l '" ~.~.I. (eslg
.. ted apprllser, on. shall be appointed by the· presldfng judge of the
SJ~.rlor Court 0( 50't. Clora County. LES~ and nrwoT .'1 by mutu.l
a;rtement. agree upon e--.teooed': payment terms '"r 4:11 suc.h p .. ,H""'Hise.
~ Interl", " .. ar-nt tEWt 51'l11 IS'S'Jme interim nat'l5geil'.ent of the PRElillSES comme(lc.i~9 on
S.?t~r 30, 1984 ond .h.lI CO<lply wit~ Its proce<!ure. for fnterlm rent.l
of ~opert1 pendfng construction of .. st)Ht! refills!! related proJect or other
per.itted .se " set fort~ 10 t~h .greement.
'III. MI lITE IlAliCf AAD Ol'( IlAI I aN
fElOANT .~.lI, notwit~st.nding lESSOf! 's obllg<t!on ~ .d~!o!st.r .. Istfng l .... s
.rfe<tI.~ the PRElIlstS ... et fortn I. Cl.us. r (CO~VEV,!JiCE r:1' fEEf TITLE TO
F~OPEnr). It fts own expense t m;slntli!t. c-r-cause its subtenants or agents. if
~ny. to ~tntafB t~e ~~r$ES Ind all fQpro~e~ents th!reon iQ good order. condi~
HOD .. arw:J repair.. TEIItA/tT stlllH pro'iide or cause to be pro,,~~ej I') secur--Hy
ser~"t. custodia' ser~~(~~ 9lrb5ge .. ja~itcrt.' ser~tte. po~er~ gas. te'Epho~e.
lfgnt. lleatfD9 aM -water. tire protection and ill other-'publfc .rtnftl SerV1c.es ..
rt l.s u!'lderst~ i!!OO egr'eed that LESSOR s1'lr!ll1 Mve no obH g!t10r); to fr'lcur" lny
expense of ani l.t-nd or character h. rConnectfol1 '!tit" t~ management, o.D~rat1.on.
cr. Jr.a1nt!na:'tCe of the PREMiSES dUiing t"tH! teril! (If t)j1s Igreernent fx:cept i!S prc
vlded fo t~1s Chuse .nd I_ Clause II (IIlSURJe"':E).
U. DEVHOPKENT OF SOlI~ REfUse PROJECT
S. .... ou1d ~EIt! iSES be develo,pe6' to seC""r.'"e as a sol il refllse lra~sfer ce-nter .. ot"
Dther··s"lfd ~fI;se p-r.xess{ng \Is!', 'SLKl:I ,se sflal1 be developed aoo cperi!!ted b)' a
,iofnt pOIwI';!rs author-it,_ "ort·profft cor'"po·ratiol1 or other tRird" party PO~EI(ATO~'J
deeme~ by n:rur to be a,;rpr.:Jprfate.. TE~Mt s"ha11 ~egotlate the terms of a sal e
or rent.l ~r PRE~IS£S t •• all G?E~AJOR provided toot:
~ .. _t:.s i part (if arty !'ental Of'" $ale to the -OPERATOR. LESSOR shall be ~uaranteed
the <iSM to 9""~'S' op to t~. 1e".r of 11 t~lrt1"~ISht (38) percent of
JEAA1(T 1 S PlJr,~as! of c~p.ac.it.7 rig·flts or 2} 28 .. 000 tons annually. upon the
same terms ,,,d' conditions as HNANT and other age1'lcfi!.s ..
S. l.ESS~ and" TEJiANT sllal1 Mua11,. agree on the pre-posed re~tal if P~"DUs.ES
Ire tG be lnsed. Sh·,uld US.SOR. ar.d HWT riot agree on a~ ~p("o.priate
re'ntal "'1t~{g one Y-2H of T£AAr.T's Co.1v;:enceQent of nagotiatf-ons witI'!. said
O?EU1OR, ~~El'nSES s1l.1I l>e olfered to .. \d C?ERJJOIl , •• «,;dance ><lt~ Sut
paragra9~ C. below. and if ~ejected by said O?£R~OR t~en sold ia accordance
wjt~ thuse 11l {'IA.~.~GE>!ENT AN!} CONTROl. Of PH~lstS};
c. In ... 1.5 ~It •• If paEl'lISES .,. to be soH to Hid twtHTu.<, s~,.l1 to> ba",.
0"'1 t;,e tne:1 Cl.lrrerlt Ila:rket nlue of" ?5I:ElI!lS-ES IS EStllbHslJed by a AJtl:JaHy
19reea!)1e M.A. I" desfgnated" Ipprais~r. 9!ou1;f lESSCR alid TE.NANT rlClt agree
!l!'i c::lIilf" ..... I .. appraiser witAlm tf\ree ll"!o)nUs of coomer.c.er.1ent of TE~~~TIS r,ego
thtions "'Wit". sa.1"d OP'£.WOR a an apprais.er s"ha1\ be appointed by the pres1d
in-g judg~ ClI the Su .. erior Court 'Of Senti Clari Count,;
D .. The net procee:!s from r2fltal o-r uTe {gross prO<.eed"s less docunented c.osts
.t"elrlt~ to t""! co'1ection of sale or rental proceeds, e.g. appnha:l costs.
tate payment dlarges. etc.] s~a:l' be distrib'Jte-d equally betwo:eq LESSOR er"ld:
'.
..:, . ....
, '-. -.* -
•
,
",~
;"-:: .. ~,-:;
'TENANT. lESSOil's' ent01l1ent t~ r'!:S!t pr()(:~eds from il 50 of 'Re:~Is.tS !.~aH be
pall t. L[SSOII wltlllo thlrtl (30) days of r"".lpt of procee<!. frQIII .,\4 OPl:V,
!~. lESSOII's entItlement t. net proceeds frcm • rental of PiE~jSES t. the t'!r~
pirty sh.n De ~ld ~. I.ESSOII I. orr •• '. on I qu.rterl1 b"I ••
1. IoDDmO!(5 00 t!1?ROVE'''l:I((S
. .
TEKA.1(t' and i.ts subt~!'\a.:1ts l"d age.nts, tf any" s.~le.l1 ha¥! the rt':Jht during and'
after :he l~llse!p'Jrc.t!ase ph,st of t~h 19re~ment to ma~.e an~ ad-ditfons or
im~fQ~~el'\ts ~ the PiEKlSES (t~lud!n9 1"1 improvement, t~ ekiste~,e 15 of t~e
date of exettJtfon here~f,) t() Ittac.h fixtures, struct'dres .. Or Sfgns, to ftl Iny
pe.rsana.\ -pr-cipert.1., to the 1~r"vemer,ts em the PR'El(ls.£S, art<! to remove -or d'emol fs"l
any e:dstfDg or s~bstq,uentl1 constructed improvements on the PREl(ISiS. lESS-CK
s~all be prQvfded In oppOftunitJ to review and c~ent on any suc_ additions and
fmpro¥ements." .
II. I!lSURANCf
nwr s'Pl.al I, durfag tl"ie term of o.h agreeme:1t. keep, or -cauS~ its-subtenants
Of" Jgel'lts, if any,. to ieep the PREIIIIs.ES, any fmprover.lents thereon, ar'ld i!IIppurte ..
• u:rices i!IInd perV'.aner,t equipment t1'1ereH:i, insured against loss or-dar.'lage! "'J! to
fire, lignt;'ling, war',talism, luHdous v.fscllie-f, rict lind chil conmotfon iP".d
sucl perJls ordtnarl1J defi~ed is ·e~ten~ed coverage-and ~inta)", or ca~se ~ts
subtenants -or agents, if any. to rnafntah 'fl1s:.:lrance against a11 c1frect or -con
tingent 10:5s Dr" t~a.hllit1 for da%a;es fOor persQr'lai itlojIJrj, deat\\. c..r propert,
damage occasioned by operolt~a-rli of the PREll!.lSES and any imprg .... emeflt;; thereon,
iI:'p~l.lrtena~es l:nd periFiflinent eqIJiprr.eiit tt',ereh, i'll sue... il!\CtJnU subject to
de.:f!Jc.t~toles customaril, carried by the TE~PJiT wfth: f"espect to 'St!JIilar property.
l.ESs.oo -s'ha\l be fla.m~ is. irl a-1d'itiQr.,al ~;l.sureli.. SiJ~l\ fnslJ.ra~e may be by seTf
fns'.,lI-ilnce or other a1ternathe (151e. ~ar.ag-ement p4"'ograms.. l£AA.NT agr-ees ar'"ld
s.fiaH -cayse. its. 'Subtena.nts 0(" agents. tf ariy. to ag,-ree to ~pl1 t~ insuNilce
pr()Ceeas that ar~ recehe<f is a res1Jlt of sue ... damages to tfle repafr or rephce
ment of tf'le damaged propertfes or impro .... er.u~r,;;s therEor1. LESSOR. sflall J at its
opHon" obtah nd ma1ntah tl'tt'~ugnJut the term of tl11 s agreement rental fr..ter
~uption or use and occupancy insuranc.e to 'Over tGtal or partf.' loss of the use
~f the PREMJSES lnd ~mprQvements thereon as I re5dlt of fire, ligr.t~i~g, ,andal
ism. lI1alidous. lIis,11 ief, tfot" o.r cfril comoUon. or suc~ peri15-Of"Glfr.ariT.,
defined is -extended cO¥e'rage-or .. as I! resalt of flood or ea~hqud:e, 1l1li an
afl'lolJr,t siJffident to pay appro'dmate1, (me-hal f of tne aMud rentll payment
cfescdbed' in Clause n {~ENTAL) (excluding the rerlhl attributable to 1EIt!Jn"s
rtfmbl"jrsemer.t of Slid! ~r.surance premiums).
TEIltA1'fT J t., the extent permItted by h .... agre.as t;? defend. indi!!\'!tnifJ ai'ld 1'101 f!
-lESSOR iI.<1j it.-:i ortj,ers", employees 1.m1j agents f:crmless frtl:'1 and' agai:nst a:\, i!.l'\d
IH 10'Sses. clai!fcSo" damages .. IhMHties or expens.es, of any ,oocei;ab1e. lind,
restJlting froll occurrence of any Qf t'he risks (.ontemplat~ b.1 tl\e. firs.t sef'1.tence
of th;is CI ause to the paE~IS-ES-. an] improvements tf\t!reon. and appurtenances. an.:i
perl1anent E'Quipme1\t there-h .. eJ..cept for the negligl!.f'!.ce IJf l~SSOR" its employees
or agents ..
Ill. ASSIGNi<£1IT AIm SIiSi.EASl:.
HIIAJU may It anI tIme" 2n~ from HIM' to tfme~ ;' ecge .. Jssi!fli, 01'" other~ s.e
tra.nsfe~ V.h. I.g-reement Ol' a.ny interest of the Tt:~i\NT 'hereh or subleas.e the
~~E~ISES ~r ani improveme~ts thereon or an1 part t~ereaf for purpcses consfstent
witll Uth agreement. TEf\Al'tT shall et all times remaf!\ Hable fo; the perfof'"1tr
-I~e. (Jf the covenants and co~;tiol1s 011 its put to be perfc("me:i hereunder not-
, ~ -" --..... " >
.~':x,':;
• ,--< ... '. -.; -'.,
• i
voc.bll 'PP~' USSOI! os t~e .gent ,"" 'ttQey I. hot of TE""~T t.
relet the-PRE~lSES .. or any part thereof I from time to time. lither h •
tM LESSOR's ililmC! M other..r5~, u~'! SIKlt terll'tS and: (:ondftfons and for
suc ... IOIU .nc! perfood IS th! U:SS~ 1I:!1 det1'll IdV1s!ble and 1..J r~cve all
persons 1'tI posses5~on thereof lrod all pers:)~41 property ..t.iltsoe'oler
slt .. t ... upon t~. P~E~ISfS. TEN.I!T agrees that t~ te"'s of t'ls
asreement c.o(jstft~te-,.n and stj,ffftie:1t notfc.e 0( tlle rfght 0( the
LESSOR to re1 et the P;E~lSES 111 the !,l'.ent <If sue'" Ii r-eentrJ' vl'thout
effectfcg .. surrender of tbb .gf'ee'l1ent. aM flJrt~r agrees th!t n()
I<tS of the L£SSO!! fo ~rfectln9 suo_ r.lettlog s~,l1 constitute I
surrem'er or te .... fnatfoft 0( t~is agreement frre-spec.tfu of the US! or
the tenJI for l!Ifl1dl sue" "letting 15 N:de or tp-.e terms lind conditf~s
of SIY.:'Jt nlettfrlSl, or otheMu" blJt that. on the contrary, fa: the
••• nt <>f '"0_ lleflult by TEIWIT t~. Mint t. term!nate t~r. 'gre"",.nt
s~.l1 v.st la the l£SSO!I to bo effectod 10 t~e ",1 •• nd ."lush,
.. anner p<'ovBod fM' 1ft su~por.gr.pb HI hereof.
I. TEI(AKt shaH be deemed tQ be 11 d'ehllit h!:!"eunder 11 TEPIANT Dr any iiIIss'fgMee
sPlan file any petHfon. or fnstft~te any proceedit1gs. l.Jnder ary act o.r !ets,
sta.te or' federa". d<eaHI'IS wit" or relat'"9 tl) th.e 'S1J'tIjec.t d bantrlJptt)' Oi
hsohenc..1, or L!nde-r InY amendmf!'l"It of suclrl act or itCts, either 15 I
bar:kr~pt, or i5-ar. insolvent, Of is ! de!;;tor .. or ft1 C!ny sfm1hr capacity,
~ereh or Wier-ehy TEHANT asks or seels or prays to be adjudi~i!!t!'d: a
'o!!'ot.r'<lpt, or is tc be-d1s.c"'at'ged frc~ '''1 (lr all of TEAANT'S debts. or
C!blfsatfons. or offers to. TEN.A.Kr'S Cf"ei:1it9rs to effect i. cor.:posltion or
extensfoll of Hme to pal TcMAAt'S d'ebts or asks .. seel:.s Of' prays for I
reorganfzatio" or to effect I ,hOI of r~or9anfzatfor:l .. o~ fOi iI .... eadJ!,;5tme~t
Df the TEt\AN1'S t'ebts .. or fot' any othel"" $\ITiHar re1 ie!. Df" if any SlJclrl
p!tition or if an1 suc~ p~~eedfn9s ~f t~e sa~e or sim!Ta~ tind or (~~r!cter
. be filed CU" be iostituted 0(' talu~!1 against TE~~..-r 01"" if a {'e~-ei _er of the
b1.J"S~n.ess {\f" of the property or assets of fE-kANT snall be appo~nt!d by any
CCK.Ift Jl .e~tept a r-ece:her appotnted at ttle i~tant~ or request of tE~S:)R, or
if r£WT shall make· i general or ClrtJ assignm'5!nt fo·r the benefit ~f tMe
TENANT's <redftQI""s.
t. If lESSllIl s1>.:l, for I perIod <>f twentJ-flve (25) day. after wrltt .. "otloe
tliereof froll T£"oo. flU to keep or perform any obHgatfon, cQvenar.t ..
iii-t'"e-ement 0," p("ovisfon (.ontained herelfol t:J. be observed or per-ro,-C'l'5!d by
LESSOR, the LESSW s~.11 bo &!.,,.~ t. t-. 10 d.ra,lt her.u'~.r and rE~ANT ":I
ti!);;e ~i!ltever &ctfan at liHf Ot" ftI eqiJit1 C1.ay !'ppear necessary or deSlrab1e
to enforce tile observance or perf OI'Il a r'lce of ar.y sl.!cll obligatbn, cov'5!nant.
agreement Of' prD~fifon.
hc.1li and all of the remedies gh.en to LESSCR bereunder 0(' by any lalJ{ no.,.
existhg or llerufter enac:ted are: c:ulTluhthe I;nd the e;erc:lse of anyone right
or remedy sl'lall not impa.ir. the rfght of LESScm tit any or 111 other l'et1l.edies.
Ilf. ~INENT DOMAIN.
If the entire p~E"ns.ES shall be ta~en unde.r the po.rer of emin~nt d'o'1"la'i,,_ the:
term gf this agreement shall cease as of lite day tf'lat poS5!5Sfon Sh311 be so
talen, and" any awarl made {;II the eoinent ~omah pro<eed'i""ngs for the taKing of
Pit£~ISH .~.1! I} ~e poid t. LESSOP. up to an amount whielt would o,ual rE~ANT's
payrueflt to lfSSOR, if JENW would "ffa .. e e~erched" its C?tfon to purc;',ese
;,. ...
•
1111.
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. >::.:~.~+~ ~'-~ .-:' J-_C _ '_, ••
.:; .:.-"-. '. ~ '; .--.
l ® @ w1ttlstar.di"fI~ a.ny suc'l\ l.s.sig,nf"9. trlrtsftrrtng or ,;ubletting 'Whit. may be made ..
lESS(lI( s~.l1 be prOvided an oppmu.ltl to r.vl .... a~ c<>1ilIent on .'1 proposed
'Sub1tues Of" e.ncumbrances,. "awe:vtr., hlhl.re bl T£tUtNT to cQmi)lr wHIi tJ!lis re .... fN
and ,~nt pro~fsfoo $~"t ~ (~walfdate 1~1 s~~leases or encumbrt~ct~ e~t~red
into by I sutltEnallt or ot~er part} for ya11d consfderatfon.
BREIICK.
A. If T£~/JIT shll fin to P'1 any r.nt.l payabl, her.under ""eo suc~ p'j'ment
btcanes due and payabl!', time being v.pressl, declared to 'I>e of the essen,e
of t~!S .gr •••• nt. or the TErtA~r s~.l1 fin to I •• p or perfo"" ."Y ot~e'
lIaterial te~:J CO'VEJ'I"nt Of" conditfon contained! t.erefd to be te-pt or per ...
fi)lr;e~ by therE!tl"J~T:J w1," failure wO\JTd bave a mattrhl ad\'erse effe.:t 0!1
the fnter.ests .cf lESSOfi lH'ider this agree'M:nt .. Of 1.Ipon tl'le l'Iappenlng of !ny
of t~e events· specified I. sub.eet!o" a of this Chuse. TErtAriT s~.l1 !>e
deemed" to be fl1 dehu1t "hel"2'lJnder and l.ES~. ~" a6dlt\on ttl all ot"",er
rights and remedfes it may ha~e at hi". shall l'lave th! opt1ot'l to 60 ",n1 of
the. follow1 09'
{l} To terminate tMs a9ree~nt 1tl the ma.r.f1~r "ere'nltfter prO'V1~ed or.
acco:Jr;t of defaalt by t;'2 TENANT.. no?:withstandfr.g any reentry or
re1ettfog_ cf the P~E"lsrS t~ "f1.eretl"lafter ~o .. ~d'-ed for il\ subpa!'"agra?-!\
{2} lle'ieof. and to l"!enter the p~E"'ISrS and remove 111 persons h pos
s-ess~on t'her~Qf eoo an pers.:)!'\~' prope.rtl lIif'Ialsoever s.itijated upoa the
PRE1JIIs.t:S. In. the eyent of 'Sue"!:! tefiB~nation. TENANT a9rees to
immediately su~rend-er po5sessfon of the PAE~ISiS. ~t~cut let or
.tn~rance. an~ to pay tES~ all damages reco¥erable at law that lESSOR
:nay ~ncur by" reason of defallit by TEAA~T. end" LESSOR agrees ta pa,.
TE~;'.t.'T tT'ie filfr mar1c.et nlue (as dete.nr:ine-d h ac.ctH"dan'i!' 'Witt; the
provisions of the ~ric-in Arbitration. ~s.c>datfcn pertafging to-real
estate nluat i01'.) of any fmprovements 0(' fixtures made or ad"d'ed: to the
FRE~JSES by TENANT to t". extent U"t LESSOI< ~ •• !res t. woe ,uo1:
fmp,".o ... ements or fhtures.
(Z) Without terminating thYs agreement. til to co~1o:ct eacb instal'rnent c.f
rellt as ft becom~ true ln~ enfD1ce any other r:"~terhl te.rm. covena.,t or
-c:ondiUon ~ontaf"ed here~n t" be kept or p.!!rformed b.)' T:'''~M"! -.nic~
fan ure to keep or perform by the TEN.AJI! -..rou1d hav!!' a 1I:1~~erhl ad~-erse
effect on the iPJtert"sts of t'he lESS,CQ under t~ts a9reem~nt Or {ii} to
exerdse any and 11 t r1gMs of entry and reentry \lyon t""e PRElIIlSES. Ir'l
the ~~!nt ltSSOR does not e-1 ett to terll{-nZite this 8,;re:emer:t ~);I the 1I'Ia~
ner pro\'fded fo.,. fa slJbpara.grapb (1) hereof, TENANT shall remailll Hable
a"~ c;~ee to \eep ~ perfo~~ .1' terms. <cvenG~ts a~d conditions n€reio
(:onhlned to be 'kept or perfonned' by TE"NAtiT and .. jf the PR£1II1SES are
n~ r~let. to pa, the f~'l &~ount of t~e rent to the end of the term of
thh !2;""eell1ent CM", hi the event t~i!t the P~E"'IS.!S Ire rel-et. to p-!y any
:1eficteoc.1 h. rent that r~Sl1lt5 th!refrOfl\i l!id turUler agrees to pay
sai~ rent a~~!o; rent deficfe~c~ punctuall, at t~e same t'~ and f~ t~e
sar.;e man.ne. illS f'teretnabo'(! pro't'-'id'ed" for-the payment of an(j LESSOQ.
receives rents therefrom In any rental payment pt:!r-iod in e:.;ce~5 of the
rental pralf'ideci far inI Clause If (ilEIITII.L, for such period. LESSOR 51-,all
pal' fuch excess {after ellyenses incurred h (:onnection witfl suc.~
re1ettfng' tQ HNANT O!l t~e last day of said' rental paymer'lt perfod.
Shoul til LESSOR el ect to reenter as. herein. prcvhfed'.. T£'NMT ~t!reby
".-".
·-'. . ~ --..
PRE!4I;£S on the «te of .... rd. and on1 b.la"« .hall be p.I« to U. TE~JIJ\'. \
sn~'oI'd sue" tat~n9 occur durll"lg ttle leue/pIJ:"thCii5e phas! of thfs agreement. or
Zl b. paU equally to LESSOR ,nd T£~ANT IS to 0.1 port io> of tile PiE~I$fS ownod
equ."! b1 lES~ AN~ TI~.
n. QUIET ENJOtMl:NT.
The parUe. hereto ""l.a1ly co ••• ant V,at TEWT. by te.plng and per(O<'~Ing the
agreementS and' co~enants hereill (.onta Lned. shall at 111 Urnes peac.u!lly and
qu'etl, ha.e, hold .nd enjey t~. PRE!41SES wit~out suit, troub1e C4" blndrance
f,OOI USSO!!.
HI. l,lOJ GOVER~!NS.
Tib agreemer.t shill be 9O'~e{"ned exc:1ushel1 by the pr-o'.fsJons. flereof arld by the
15~ of the State of Califo~Ail as ~y exfst fr~ time ta tfme.
1111. NOTICES
All notrees" statements" dl!mands. consents. approlfals. authoriuHof"s. offers,
designatfonE., reQ"uests Or' otller CO>'!ll1t.lrllc«tions hereur;der til either party to the
Qther si'lall be 11:1 ,)£J"iti'!'og ar:d s!\aH be 5uffic.~ent', gin·ftI al"td !.erve6 lipan the
other part., U delfver-eod per50~a1l1 or ff mai1!!d by ttnited State~ Po-stal Ser-~ice
re!itstere::2 01 .... certified If'.an,. rettlrQ recefpt re-q,liesteri,. postage pre,PaH as fol
lows:
Til USS~
tIt! of tos Altos
Co. Mo<th San AntoDlo io.~
t~Altos. CA 94022
P.l0 }.Jto •. t" 94303
i.nE~Hi)R: C;-tJ' lllaD.ger
Real rropert,
M'IIflifstrltc-rv
iOTE~
tity of ,.10 JJ to
2~O ~am11to~ Avenue
P.O. Be, IOZ5(l
JJTlMT10N; tity Clerk and
c.r t~ "$ue'l\ other addresses iiS ti'1e respecthe-p"rtleS may from tlme to tlme
Gestgnate by nott,! (Q _r-itfn;.
Hill. IALIUITY ,,~O SEVERA&ILITY.
[f (or any reason tllJ's agreement shal J be "held by court of competent jurisdic
tion. to be ~of'. rofdable. DC' unef!forceab1e by l[SS~ or TEAA!'fl". Dr if tor a.,y
t"euon it h hehf by sIKh, court that any of t"e covenants and conditions of
rEKA~'bereun~er. f~cludin9 the covenant to ~y rent,ls ~reunder. is ~n~nforce
ible: fo.r the hll teNl hereof, theo and ill such e\'trlt t~lS agree.'1'Ient is anc!
sflall ~ deemed to be iI lease frOTll year ttl year -unC'er ..-!'lYe"" t~e rentals are to
be paid by the HWT ,oo"a1l1 •• ,0O$lde"tlon of tile ri.ht of the TEWT to
POSS!ss. occupy and ~se tfle PIiI:£""IS.fS. and all other terms:. p.royis~ons and condi ....
tf,tlns ()f Ufs a9reement, except t~ the extent that suc1l! hMlls .. proYhfa~s and
condrtfon~ are .c.ontrarl t~ or incorrshtent II"it\ll such h<Jiding,. shall remah fill
t~ll fOf'e and effect,. and provide~ that t;tle to the P~E~!SES s~a'l ~est i~ t~e
fEMNT substantia11.J frI acconh"ce wit" the jntel'lt 0( this agreemet1t~
.. --, .. :" . :..:.>
•
:'.-
XII. ltAlVU
l~e ,..her by either party hereto of any br •• c" by tn. other party of any ,go •• -
ment, c:ovenaett ot' c.ondiHof1 hereof shall 1'l~ operate as .I lAfur of Inl subse
Q.uent breach CIt' tf\e' $line: Cir any otfl;!r agreement, (,O'ienant Of' cof1ditfolll hertof ..
XI. SiJCCES~S A.~O ASSIGNS.
nf$ Igreemeot shall {,yro t. the ben.fit of on 0;.11 be bl,ding UPO" the
LESSOR, the TE~~ Ind thetr respective successors Ind Iss~gns.
HI. AGitfOOIiT REPRESEIiTS COKPtElE AGREEMENT.
r~fs agttement ~eFresents the entfr! contract between t~e partfes ind superse~!s
Ind cancels any Ind .11 previo'tJs n~otfatJons. arran'3ements.., representattons,
Igre'!fltents ant! undp.rst&ndfng5 ~t .... een the lESSOR. ~Bnd' t"'e iEAANT (.oflcer.1ng th'!
P~EMISES and matter. c ••• red hereby.
UII. SECTlOl H[I.DI"GS;
A.1 t sectlQIl l'Ieadinas contained 'herein. are (lr cafl'ienfenclI! of reference 0(1.1,1 ar.d
Ire r1Iot fntendtd' to d!rine or Hla1t U".e scope of any prt)w~sf"n. of U.fs. !gree
ment.
11111. t~ECUTtOft.
Ttlis agreeme:1t r.ay be ex!'c:tlted hi a:'l1 ~m~er of c.oIJ"ltel""parts. facTt of whic,,"
$1Ia11 be d'eer.l~ to. be 111 Of'lgf~'Ii!:l, but III tCl'9etner sh511 constitute but one and'
tf'le sallie igre.e~-,t. It is 11M' agreed" that sepaute co=..:nterparts, of the agr,;-!
Blent !My separc:::l1 t.e ex~uterj by the LESSOR: Ir'ld' the TEAANT 111 vitI!! the same
force !Ina effect is t~ugh the salf~ -eol!nterpart lIa:1 beeQ executed"" by t>otll the
L(SSOR and the T'N~~T.
II \lITNESS WHEREOF, the LESSOR ,od the TENANT ~aye c.,~~ Ufs agr •• ment to be
I!xec:vter! bj! their rrspectfve officers thereunto d'ul.)' i!lutnodzed. III as of the
da)' a~ year first above lI'rltter).,.
LESSOR:
City of los ~Jtos
By, '~Ka~Y~~~----------------
APPROVEO AS T~ fOP./(:
Cft, kt.".""y
ATnST:
TE "".NT:
City or Palo Alto
By: . ~M~ay~o~r~------------------
IJTEST:
City Clerk
APPROVED AS JO fOIl>!:
~t:o.ic'r Ass1stant (:it, Attorney
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ti t)' .ct to. II to>
lEIWlT,
Cit! or PAlo ~lt~
APPiCVEQ AS Tv AVOIT I AtCOUH1ING:
"'.isHot tlt.'tQP--
Public Io'",h
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J=e U, 1991
THE HONORABLE CIT~ COUNCIL
pal~ AltD~ Calirornl.
Solid Waste Facilities Feasibility Study -Consultant Agreerr.ent
Members of the counc i 1 :
Report in Brief
This report recommends that Council approve an agreement with
Wahler Associates in tbe a1!tOUnt of $'l/S.OC for consulting services.
for pertonain9 a. two-pha~e Solid Waste Fac:ilities Feasibility Study
for the 'tormer Los Altos Treatment Plant (LATPJ site~ ~Jnds for
both. phases have been budgeted in the Refuse Fund F'i 19;O-:H
operating budget.
Discussion
Work under this agreen .. ent vill provide an assessment of slt>dqe and
soil contaaination <:>n the site of the. LATP arA evaluate the
feasibility of developinq the pr-operty for four solid .. ·aste related
facilities .. 'I'he four facilities are a carporate yard for Palo Alto
Sardtaticn Company" a recycli1l9 center.,. a permanent bouse:nold
hazardous waste facility and a Dini-transfer station~
The SCope of Services has been <9:ivided into two phase.s for
implementation of this stl.ldy.. Ph~se I consists of performing field.
surveys, s.ampling and laborat.ory analysis O!l sludge ar..d pot.ent.ially
contaiainated soil at the LATP. This phase viil deterllline the scope
of any hazardoos COt"1taminaticn at the UTP that would require
special pe.rlllittill9 and handling r in order to implement d-evelop:r,ent
Qn the property.. If the results of Phase I indicate that ~evelop
~ent of the ~roperty is practical... ~ha5e II of the study vill be
conQ·ucted. Phase II 1..-ill entail the development of conceptual
designs fo:r each facility, evaluation of economic and environmental
illpacts a.ssociated with the development of these facilities
(incluo.ing land-bAI'..king fcur acres 'Of lln-used marshland) I and.
prepara~!on of preli~inary cost estimates and timetables for
design.,. environmental impact. reports, permitting and ccnstr1Jction
of th~ facilit!es~
A reque.st for proposal'S 'Was issued to 11 ccnsultant firms. and
three responded. The three fi~s ~ere intervie~ed by a selection
advisory cornmittee l in accordance with the City's selecti~n
pr-oceo.ure for-professional consultants. The fir;ns int.ervie'W'ed "Were
Camp~ Dresser and McKee.; Inc.; Brown and Cald~ell ccnsultants; and
Wahler Associates.
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C>!R:216:91
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The selection advisory comnittee included staff from the public
Works Oepartment.'s Operations Divisicn and th.e Finance Department's
:Real Estate Division. ~he committee selected Wahler Associ!!tes
b4se~ on the firm's exp~riencel its ability to m~et the criteria
established in the proposal J its technical 3pproach. and the fees
relative to the ser~ices to be provided.
'!'his project vas i",,1u<1 .. <5 in the list or FY 1989-9D consultant ..,ork
sabmitted to the Fina.nce and Public Works Committee in July 1989 ..
and was not selected to be returned to the Comn.ittee for revie ... r.
Rgcommenda.tions
staff recommends that Council:
1~ App-rove and authorize the Mayor to execute the attacbed
consultant a9~e~ment vith Wabler Associates in the amcunt of
$11,50-0 tor consulting services for performing a t~'c-phase
SOlid Waste Facilities Feasibility Study for tt.e Los Altos
Treatment flant site.
2. Authorize the City Manager or his designee to ne9~tiate and
execute amendments f~r services related to or incidental to
the scope of work or" servicEs I the value of all of "Which
amendments shall not exceed "$lQ ,500.
Respectfully submitted,
KICKAEL H. MILLER
~\y Director, ~liC W~rks Operations
v~u,~Jkfc~
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DAVID G. ADAAS
Director of Public Works
tf~G~
Assistant City Manager
Atta~ants: Agree~ent
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