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City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL
ATTENTION: POLICY AJIo'D SERVICES COMMITTEE
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: November '. 1995 CMR:486:95
SUBJECT: Former Lo. Altos Troatmeal Plaat Site -Study of A1temative Uses:
Update
REorn:sT
This is an informational report on Ihe status of the Fonner Los Altos Treatment Sile -Study of
Alternative Uses as requested by the Polky and Services Commilt<:e al its August 8, 1995
meeting. Co-.mcil aaion is DOl required.
RtrnMMENPATIONS
No aaion necessary.
mucv IMPLICATIONS
There an: no policy implications althis time.
EXECI!1JYE SUMMARY
In May 1995. Council authorized funds in the amount ofSSO,OOO 10 be added 10 the FYI 995-%
Refuse Fund Oper.ling Budget, for coosuItant services 10 conduct. summary reappraisaJ of the
fOOner Los Altos Treatmenl Plant Sil. and 10 update costs associated ",;th various options for
the long-term use of the sile (CMR:226:95).
In June 1995. City staff completed the preparation of the draft Request for Proposals (RFP).
DJring the internal review process, staff contacted severallinns that previously had done this
type ofwort for the City 10 provide preruninary cost estimates. Two firms responded that they
could do the wort for under $25.000. On July 13. 1995, staffissu.d the RFP (scope ofwort
attached) for this project, 10 eight consulting !inns; ooly three responded by the closing date of
August 8, 1995. due 10 the small scope of the project Aflacareful review of the proposals,
EBA Wast. Technologies, the firm whi<:h bad previoosIy completed the feasibility study and
preliminary design wort on this project. was selected 10 perIi:Jrm this work for a fee not 10
exceed $24,353.
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EBA waste TedlOoiogies started the work on September 13, 1995 and tile project will be
completed by November 30, 1995. ''''hen the project has been completed, staff "'ill return to
Counci1, with I recoouneoded coorse of action wbleb may include the purchase. financing and
de..-e~ of !he site under. preferred alternative 10 be &:termined as a resull of this study.
FISCAL IMPAct
This report has DO fiscal impact.
ENVIRONMENTAL ASSF.SSMENI
No environmental assessment is Meded.
AJTACBMENIS
Stcpe of Work
CMR:226:9S
PREP ARID BY: Robert Le, Senior Engineer, Public Works Operations
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EXHIIIl A
PART I • SCOPE of WORK 01' SERViCES C,t)' ~ Palo Me
SCOPE OF WQRK
In Qeneral, Work for this project £onsists of tne fonowing task"
Toskl
Task 2
ConsiJTtan.t shan review snd evaluate an information., data, repons
and drawings as fisted in Table 1.
Co.""Lsuhant shan use the existing -conceptual site plan {Attachrnent
1} to prepare two (~) new conceptuar site pTar.s as f-oITows:
+ Sjla Plan 1
Remove the VISitor CerJtEr aM re-prace w1th the }-I..O\.:seho~d HCizs:rOouS
Waste facmty.
RevIse the fimit fine between Phase 1 .and Ph.ase 3 .:;s necessary.
Plov'ide fencing alor.g the new limit fine.
Remove an Sttt.'Ctures in Phese 2 and Phase 3 8:-d ;epface with e paved
construction staging Of storage area for Lrtilities inftas:ructure projects.
Revise the sewer .eM drainage systems and the pcr<mg sp.:ce layoot
as necessary.
+ SilD Bect 2
R€:r.ove 1"le VlSito.rs Cen!er and replace with the Ho!...se·hold Hazardous
\Vcs:e Fo::i:::y.
Re ..... se p·e f:mit fir\€! t·etween Phase 1 and PrlBse 3 cs neceSS6')'.
Remo ... ·e c:1 structures in Phase 2 and Phase 3 End replace with a
recyc~ ... "'<g c€nter (approximately 2O,CXX> loos,),earj induding the layout
of lec~'.cTir.g equipmer1t and a g{een. waste compost1og facility
(a;>proxima.eTy 20,()',)Q lDnsr'year).
OTY of PALO A1..re: Rfp (5195) SoCTION 0000l.e
PART I • SCOPE of WORK 01' SERVICES Cily 01 Palo AIIo
Revise the sewer and drainage systems and the pErkt(;9 ~pace Eayout
as necessary.
Conceptuar site plans shaM show an improvements in pian view and shan be
&CCUfately draw" 10 sca,e O· = 40"l ar.d completely dilTl<!nsionec.
Task 3 ConsoltaM shaD revise the cost estimates ior tt.e two alternative
downsized soM waste p<ojects (site plans 1 and 2) inclu<fmg the
timetables 10<" design. environmental impacl report preparation"
permittiog al1d coostr'uctioo.
Task" Consultant shan develop a Iormula 10 determiM the proportionate
share O"f current and future costs to. be shared by the Utilities
Department, or a third party. if they pIXchase or lease the construction
staging or storage area ISite PI,," 1).
Task. 5 Cons.ultant sha'll (ev~w an legal aM re~JTato..~ requirements f.of
acquisitkKi. and permitting frx -various uses .of the sjte~ includirt9
annexation r.to Palo Arto.
Task 6 Consultant shan evaluate an potentiaf fL11andng Opf~1S in adC1tion to
tha optior,s described in the CMR:226;S5.
Tasl< 7 Consultant shan atlelld three !3) meetings.
Task 8 Consultant shaD p<epare and sul:>mit report and drawings fir>eltxfmg
reproduciblesJ f()( revtew and' ap-proval as fono ........ s:
70% complrtioo submittal,
SS % completion sui:>mitlaJ:
final submittal:
CITYofPALOALTD: RFP (5195)
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5 copies
5 co-pies
12 copies
SECTION 00001-1
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TO:
ATTENTION:
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HONORABLE CITY COUNCIL
FINANCE COMMITfEE
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BUDGET 95 -96
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
AGENDA DATE: May 1S, 1'195 CMR:226:9S
SUBJEcc: FORMER LOS ALTOS TREATMENT PLA.'IT SITE -STUDY
OF ALTERNATIVE USES
B[COMMF,NDADON
This repon reccmmends \hat !he C<lunc~ authorize funds to be added to !he proposed FY
199:5-96 Refuse Fund Operating Budget fur ronsultanl services 10 conduct • summary
reappraisal of the former Lo5 M.os Treatment Plant site and '" update costs associated
with various options fur the long term use of the site. Staff further rerommends !hat
Council authorize staff 10 investigate the actioos which would be necessazy for acquisitioo
of the City of Los Alto< remaining 50 pereent ownership of tIJis sile,
BACKGBm!ND
In i 984, !be City of Palo Alto eDteted into an eight-year Jeasefpurcba.<;e agreement with
the City of Los Alto< 10 >eqUire I 50 percent interest in'the l3.2 acre. fonner Los Altos
Sewage Treatment Plant (LA TI') located at the end of North San Antoruo Road. north of
Highway 101 (Attachment A)_ Funds from !be Refuse lltilily were used ror the
acquisition, The .greemem was consummated in December 1 m. and the property is now
equalJy owned by !be City of Los' Alto< and !be City of Palo AllO.
The agreemeD! stipulates that. if the City of Palo Alto has not deve!operl the property as
• refuse transfer or refuse processing site by 5epIember I, 1997. the City 0( Los Alto< may
sen its 50 pereen! interest to the City 0( Palo Alto at current market value, The City 0(
Los Alto< staff recently have verbally expressed an interest in conveying !heir 50 percent
interest 10 the City of Palo Aho,
In 1990. the Public Works Departmen! began 10 investigate several options ror future use
0( the property. One of the options was the development of the site as a solid waste
faeili!y. because the current refuse collection and hauling operations yard on Geng Roarl
is DO! ronsideted viable as a long-term option. Space ~onstraints imposed by office
development on one <ide, and the BaylaOOs Athletic Center on the other. restrict any
potential expansion at this site. As the landfli.l nears capacity and long distance hauling
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increases commensurately, sJ"K'" at both the Geng R.."3d site and the landfill for refuse bins
storage, uuclcs, and repair and mainlenance activities on equipment is decreasing
signLficantly.
In June 1991, Council approved an agreement (CMR 276:91) for consulting services for
perfonning a two-pbase solid waste bibility study. The flrst pbase was for all
assessment of potential s<>iI and "'lidge con!aminatioo at the LA TP site; and the second
phase was for conceptual designs thaI included. refuse collection and hauling yard for
PASCO, a recycling ~enter, I permaneOl bousebold hazardous wasle facility and • nllni
tra!lsfer .tation. Phase IT also inchlde<l an evaluation of economic and environmental
impacts associated v.ith the development of the .ite, preparation of preliminaIy cost
estimates, and timetables foe desigm, Environmental Impact Report. permitting and
construction.
The 1991 consultant report estimated the IOta! cost of im!lf0vements (Including acqulsi!icn
of the remaining 50 percent ownership from the City of Los Altos) at appro.irnately $13
million. The project would ha.e been constructed in three pbasel;. [Ju., 10 the estimaled
cost of the IOta! project, sraff reviewed the concep!llaJ design and wants to pursue a
downsized project, as well as OIher a1lernative uses for this site.
AI,TERN.>.T1VE LATP SITE USES
There are two alternative approaches 10 the disposition and use of the LA TP site. Each
alternative has. variety of options for use. The first alternative, whicb staff recommends,
is to pur;ue purchAse of the site for refuse services and storage purposes. The secood
alternative is 10 maintain joint ownership of the site ... ith Los Altos 10 potentially develop
the site foe commercial use ()( to seD the site 10 • third party.
A1remarive I
The City of Palo Alto wcold purchase and annex the site and zone it 'public facility.'
Under Ihis wrrotr.·e, the City has. variet)' of options. One option includes using the site
as a refuse collection and hauEng yard, a permanent OOuschold hazardous waste facili!y,
and as a construction staging ()( storage area for Utilities infrastruc!llre projec!5 (the
R"")'cling Center and Compost Facility would remain at the Palo Alto landfill).
Approximately 50 percen! of the useable site would be used by the Refuse Fund and 50
percent (4.0 acres) by the Utilities Department. Under this cption, the Refuse Fund could
either purchase the site and \ease space 10 the Ut11ities ()( the Utilities could proportionately
share in the costs of purchasing and developing the site for their Ioog-term construction
needs.
Sbould the Utilities flO{ use this site as • sraging area, a second option would include
moving the R"")'cling CeDter and Compost Facility 10 the LATP site. Any remaining,
useable acreage could either be \eased or developed roo: sale.
CMR.:226:9S PilgelofS
AJternarivc: n
This alternative asSUIlle< that the Cities o( Los Ahos and Palo Alto continue joint
ownership. OIl'> option is foe bOOt partie. 10 develop and !ease the LA TP site for
commercial or retIil use. A second option .... ould be 10 seU the site 10 • third party.
Based on preliminaty indications that Los Altos is interested in conveying their intere<llo
the City of Palo Alto, and based on the City's future refuse services needs, staff does DO(
recommend this a/temative. It is in the City's best long term interest 10 retain the site for
future operation of the refuse system, inc1ud'tng bod; City activities and contract
operations.
PROPOSED SO)PE OF FUSIBILITY SI! TOY
The prop<l6Cd srudy wookl include an update 0(. 1992 appraisal by performing a summary
reappraisal of the site (required in the City's agreement with Los Ahos); a revision 0( the
C<lSt e<timales for the two alternative downsized solid waste pcoj eelS; devek>pment of •
furmuJa 10 determine the proportionate share of costs 10 be shared by the Utilities
Departmenl if they purchase or le.1se • porJon N the site; and • review of an legal
requi.remenlS for acquisition and penrutting for various uses of the site, including
annexatioo inlo Palo Alto, and evaluation 0( pot.ential fiJla.'lCing options in addition 10 the
three options fisted by staff .
. WANCING OPTIONS
Should Council alIect staff 10 pursue the purchase of the Los Ahos share of the former·
treaCmeIll plant site and develop the site, • varlet:; of financing options are available. The
Refuse Fund would be the primary user in terms of acreage and acfvil:ie<, and the final
financing option would take into· acrount the possible pa.rtieipationof the Utilities
Department, and wookl need 10 make sense from • financial pe1>pCCtive for boIh the
Refuse Fund and the Utilities Department. The available financing options include the
following:
1. IssDe Revenue Boods -The Refuse Fund would issue revenue bonds, which are
secured by the abUlly 10 generate non-tax revenue, and pay for debt service through
rates.
Advantai"< -By issuing bonds. paymeru for the sr.e and imp.-ovemenlS would occur
over I 20 10 30 year period, mitigating increases in rates necessary 10 pay debt
service. The cost of impcovemeDts, therefore. would be shared by current and
future users of service< provided by the site, which is optimal (rom an equily
standpoint.
Di<j!dva1l!i!i"< -The Refuse Fund wookl incur debt. and refuse rate< would increase
over time.
CMR:226:9S PagelofS
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2. '_(Purchase A&:n"meg( -The Refuse Fund would enter inEo an agreement with
Los Altos 10 purchase its share of !he site over a designated period of time. Such
an agreement cook! be stnl<:tured in • manner similar 10 the eigIJt-year
lease!purcbase agreement in which Palo Alto purchased the initial 50 percelll
iIllerest of ~ sit.e. Thallease!purcbase agr~ment, concluded in December 1992,
was financed through Refuse Fund rates.
Ady,ao:.aees -The Refuse Fund would purchase the site over an extended, but
shorter, period of time compared 10 debt issuance and incur less debt cost.
Pisadvanlai"S -Based on • shorter time period of payment than for revenue bonds,
a sharper increase in rates would be required.
3_ Pun:hase Outright -Through the combined use of reserves and a rate increase,
purchase the site and make improvements.
Adyan!ages -The utilities funds and refuse fund would incur nO debt.
Pisadv;w~-An outright purclJase could include boll> • reductioo in reserves and
• steep increase in rates. The cost of this purchase would be borne by turrelll
users.
roucy IMPlJCATIONS
There are 00 policy implicaoons related 10 Cooocu approval of the recommendations
oonrained in this report. Any action to proceed with the acquisition or implementation 0(
• recommended altematr •• would be subject 10 further review and approval by the
Council.
fiSCAl, IMPACl
The cost 0( this stud} "e.timated at S5O,OOO; the f=a! impacts 0( L'Ie project alternatives
wnI not be koown urnil the use and cost <lata is updated and an implementation plan is
broughl back 10 Council for approval. The cost of the slndy can be funded from existing
Refuse Fund reserves ,.iIh DO impact on either rates or other activi6es.
ENVIRONMFNfAL ASSESSMVf[
Ther. is no environmental assessment required for approval 0( this funding request. Al1
ErR has previously been approved for site acquisition.
STEPS FO' J oWING APPRQYA.I '
I. Staff will prepare an amendment 10 the proposed FY 1995-96 Refuse Fund
operating budget Ie include $50,000 for consultant servic<:s Ie perform the summary
reappcaisal, update the prior stud'IeS cost data, and evaluate fmaocing options.
CMR.:226-:9.s
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2. StatIW'JI retun>.10 Cooncil wh.en the stud, is complelt.lI-'iIh a recommended C(M.l.J"S.e
0( action whicf! ='1 incNd. the purchase. fulancing and development 0( the site
UDder a preferred alternative.
PREPAltED BY: M'1cllae! H. Miller, Deputy Direcloc. PuO!ic Works Operations
DEPARTMENT HEAD REVIEW: ~~J: /4.-&dv ..
7 OLE! S. ROBERTS
CITY MANAGER APPROVAL: -(~~ru~~~'1J,---
A IT ACHMENTS:
A-Site Map
CMlt: 276:91 (619\)
CMR: 310:4 (6184)
CMR: 141:4 (5/84)
CMlt: 558:2 (10182)
Site Location Map
October 28. 198<
HCNORABLE CITY COUNCIL
P.l0 J1to. ea11forcl.
Purch ... of Los Altos Sewer Treatment Plant Property
for I n!..l!iilJer of years the (fty cf Palo ".1 to has consfdered purcnasing
the """ "",t los Altos Sewage Treatment Plant property located at tn. foot of San Antonio Road. Our iotentloo ~.s been to ... this as •
traM fer sfte lihen. OUr sanit.arJ landfill is (l~:ed. Previous
diSc"V5sfQns f'I,e\le not bef!rl coop1etel, successful .. a.nd purchase of the
s:rope'rty has. received i rehtfveTy low priority_ With the 'increased
attfyi ty of t~ Solfd 'Waste Joint Powers A£ency and (ounci l's poHcy
ciecfsftn to <'lose our-awn 'Sar.itary landfill witf\\l& the fOt"esee~~Te
fwturf. the purc;,ase of 'ti1is property arid its USE as a transfer sit!
bec~~s somewhat more importa.nt. As ~ res~'t. ~ heve reopened
" discLissions with los Altos cffic.fa.ls ,end llavE-begun to explore a
possto1e., purc.t.ase hi SOllie detail. Prelimina.ry apP"-iisals t,av-e been
don!, ,r,d some geoteclin"ica:l: studies have be~n perfarrr,ed on-the pr:::~rtJ'
i& o-rc!er t~ PIe'"" establish fts n1ue and also alert us to potf'r.tial
probie~~ regarding its use a~ a transfer station. Our Budget and
Resource .Mar,agement [)e,part.ment is preparing a p,re limi r.ary f~ narn:; a'
cn!lyslS identifying tne fmplicatfons of suc~ a pu~chase on tn~ Ref~s~
FLmd. and' the: Real Property .Management Chisior. ~s begun Hs 'tt"Ork to
prepare an acquis1tion program for t~is propert1~
Neighboring jurisd-:ctior.s and t~.e JPA Ire being kf;t c.losel, c:ihdsed
and lIave bei!n invit-!d to joh liS in wor\.tng out details and US'5'S fer
Ulis pro90~ed' faei] it14 twill 'keep you hforned as. t~is project .
proceeds.
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HONORABLE CITl COUNCil
PB1~ ~lto. (",foro14
Acquhltlon of fo.-mer Lo. Altos Sew.g. Tr.at ... nt Plant -Cit., of los Altos
~bers cf t~e tcuncil:
Tl'lh is an ,imfor-mational report» and no Council action is req'Jired.
Somet1tn'! ago the to\.lnc'l 'Was i"nfQf'med that staff 'Was engaging in eli SC\J5s~cns yritA los
Altos rega_rdfng FaTo Alto acquf5ftion of the former los Altos ir-eatn:fnt I'lant. The
trutment plant 1s located at the end of San Antonio Road j\,j'st out5ide Palo Alto City
Hmft'S. tliscwss;ons are cooc1udin!:J al'1o an ag,..-eement Tll2'gotiated b,] s.taff is e)(.pHted
to be: pres.ented to the los ~1tos and h.l0 Alto Cfty (oundTs it! tr.e near futEJre.
Summarl of Jentatfve A9r~ement
As ~esent11 structured, the agreew.ent is summarized it, follows:
t Palo Alto ~111 purchas.! a SO percent interest in tl1e t~irteen pl us a:cre site
over an efgnt-year perl'od .. Annual payments win be 523Q~94l reflect1!t9 Co
$,,~O.6lS purc~~se Pfl<~ at 9-1/4 perce~t.
t Pilo .Alto win be the controlling cwner and ... ill cl'ecfde on the propert,"s
.. se !)(' 4'is.posal •
• If the ,propert.J will be \lsed for C! solid ref'Jse tran.sfer center. Palo Alto
'Win negotfite a sale or rental agreement witil the deve1o~er/o~erator of the
center.. Tne only limitations on these negctiat10ns are:
1) los ... ltos will be guaranteed the rigl"rt to pur,nase (apadty rigMs
h proportion to Palo Alto' 5 purc'hase. e.g .. 32 percent of what Palo
Alto purCl'lases;
21 Net proceed's from the rent or sale of the prope.-tl to the
developer{ operator will be distribt.:ted equal1,1 betwe-e:n Pale .Alto
and' los "ltos;
• "If Palo ,,1to deterll1;nes that the site ls not ap~roprfate for a sol Tel' refUSE!
tr.ansfer sit! .. Fale Alto "ay utilize its procedures for sale of the pro
pert'y .. and' the net proc.eeds fr\lm tl'1e 52!e will tJe distrlbuted equallJ
between Pilo Alto and tos Altos.
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tt· h l'Jl.peGtr<: tha.t interest I(c<Jmul&tions lit the nhse fund wfH be suffitie!",t to
(over tt.! e1g~t a.ru'!\,Ja'l le-asa/purc.hase. payments. ~r:~ futllre rentel or s.a'e re)'enue
re~1'%ed from the prDpttlJ should offset the rtfvse fund's acquis1t;o~ cost,.
f ••• lbllft, Stodl
" pr.lll11'.ar~ f ... lbilitt study Ms <0",100.4 th't the site Is t.p.~10 .f ."ill
~.nd1I.~ tlf ... fro. P.l. Alt. lod Lo. Altos. Sho"ld this lease/porchase 09<,e.o.t be
<.nSllmoted, "1~ Alto .nll ~." ... Iled ft ... 1f of on, option to d .. l wit. to, loog.
Una s.lld nf ••• problem. Stiff fs current11 preparing I Req"est for Proposal litH)
to obt.1> the M'O''''Y upertlse to ""amf", to. solid rofus. ~.nd1io9 feasibility .f
U!s sIte and other .Her.,tl,., 10 9'.ater detail. In. proposed L .... !Pu"~"e
"'-Sre-ement and iF' 1M c.onsuitant 'SI!l"vic!s, will 'be agend;ze~ for Coun,n ac:tlon 10 the
C'lear future.
tt: R~ Gruenwald
ActIng (Ity ~".g.r
(I tr <>f los "1 to.
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June 28, 1>84
~ONORABtE (ITT COUNC I L
fal. Alt., .;aliforlh
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Aeguhltfon :>f F ....... los ''It .. Sewage Tre.tment Pllnt"-Cltr of los Altos
~embers of the Counc4l:
8actll!'Dund
Staff Report c.eto!d October 28. 19~. (CM.R;S58:2) h(orrned Council that 5taf( was
i~ltfatlng dfscu5s1ons with; tfle Cit,. or los JJtos re~arding-tM! ~cquf5itlo!1 of thefr
foraler Sewage Treatment Plant for possib1e fvttJre lise as. i!I solid -waste transfer
c1!nter. The 1983184 Budget mesSi!9.:! i~fOt'med (our.cil or the inch-sion o-f fU!lds i"l that
budget (G-r tne ICQuhltfon. Staff RepDrt C"'lR:146:4 indicated t!"l;:;t negotfa!f{)r1s with
las ATtos were concl~dlr.g and a tentative 19re€ment had b~~~ ~ea:~ed.
l~is report (~~ar's tfle agieement negotfated by staff for Council consideration. The
los Alto.s Cit] COllOCll approved t"ls. agre2m~nt on Jun-e 12. 1984.
Use Gf los Altos Sewage Treatment Plant Site
The need to rlan for fut,-,re sol1d refuse disposal ha.s teco~e more fmpo-rti!nt a5 the
landfill ("ears capatit1. One alternative is t" utilfze disP05.at sites. lOt:-ated outside
of the lfll':\ediate area. To utilize sue'" ootlying d"t"spcsal sites. i transfer sta!.ion.
whfc~ transfers ~efuse fro~ small truc~s to much larger transp~ tr~c~5~ is
neCi!SsHY. A. transfer statton was recently opened h Sara l'iateo Cou.nt! and is slmllar
to wflat ,.ill be required h Palo Alto.
The former las Altos rreatment Pl ant site. owned by t"e City cf los __ 1 t.,s .at tne end
of Sar'l Atltonio load". thiS been eo.1sfdered a pc.ssroJe site fo~ i!I fut·"noe Vansfer
station. A prelimfnarl analysis indicates that t~e s;te is eapa~le of ~andlfng far i~
eJC;cess of Palo Al tols. tos .It] tos' and Stanford" 8nj V€r-sit,'s ref.:se geMratfon fe-I" t~e
fO('"e~eeable future.. As indicated in 'C"ffi :145:4:. st~ff fs preparing: a Request fo~
Proposals to obtah ttle !)I(pertise to exanline the solid .... aHe ~andling fenibiHt.1 of
this site and other alteroatfwes fA g~eiter detail. While fUlther studfes rnay lead t~
other more d'e.sfra't)1i! sites. it is. advanta;eous for the (itt to obtaift c.ontrol of at
least one 5it~ t~at is ca9ab1e Of meeting its needs.
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'ropos~ telst/P.rc\~se Agreement
A propo~e~ t!a$~lP~rtnast Agreement is attac~ed for C~unc\\ censidtrat'o~. T~e-t~~s
of ttl! lun/Purchase Agreemer.t are summarized h tfle l:ttaded leas~/Purt:ha5e Surrunar1'.
lnd POr~ spetificlll, d1$t~$$e~ be1ow.
During th'e ·fl;.t· eight ye.rs of t~e •• , .. ment, the Cit1 of Polo ~lto .-Ill pa,
$280.943/yeor. Afte, the .Ig.,t~ yea,. title to the propert, 10111 vest ",,'l.ll1 in the
tit, of hl. Alt" OM the tit, of los Altos. The lusefPurcMs. Agreement will sin
the (;t1 of P.l0 Alto control over use and/o,.. dispositfcn of the site tf1roughout end
'ft~r tne tt3~t yeir lea$e/purc~a~e per1od~
ShQul~ '.let .J..ltG 6e.cfd'e tt\at the. s~te is not des.fred for a transfel'" ita.lion. the
propert, e .. be.old .rld the net proceed. of .. 1. allocated ""uall, between Palo Alto
1M los Altos. s!\ould 0 traMf .. station be bIIHt, Palo Alto "';11 be the T •• ~ agen'y.
to. Altos will be 9\Jar.nteed the right t. ~ur<has. the Tesser of I) 38 percent or
Palo A.lto·s purc.hase of upadt1 rights. OI"s 2) 28.000 tons annually. Revenue from
sal e or rental of t"e sUe to t1le transfer station deve' oper/operato.,-(whf,"'" can be a
prhate party. jofnt powers l'Jthority. ftC .. ) s1\aH be shared equallJ' betwE'en. Los
IJtc. "d Fib Alto.
It: appears that interest !:In refl.lse fund reser~es wiH be sLlfffc.lent to 1T".a'R:e the eigl',t
an.nual payments and. therefore riO fncrease in refuse rates w1lt be re~uirelj to f-!J fer
the ZI!:Q.ufsftion. ky fut~re rent.ll or sa1e re\l!nue received" should' be retl.,;rne::f to toe
ref\l's! fund to compensate the refwse fund: for its acquhitfon: of this sft •• lHe .... ise.
in tne event t~at t~ pro~ett1 15 used for park. cr ~en space purposes, t~e 9=neral
fund sllolJld'· refmburse ttle refl.tse fund reco9nizing lise of the refuse funds f-o·r
acquislt\<ln.
Eavfron~nt Impact Assessment
Approval o:f t~is-agreement does. MIt coostitute a projec.t u.nder CEQA.. Any pro;.os!d
develcpme:1t of the 5;~e "'II{HJld" reqaire an en.vi:Mr.lenal fmpact assessment.
Stiff iecOlMlen4atlons .
S-t.aff recolTr.len~s that the C.o'J~cil authorize tI".e
leaselPurchase a~reement for the lease/pu.rchase 0(
Treatment Flant site.
.:' .
, ,
. , -\
May~r to sign
the former los
tfle att=che1'
.to t os 5e ... ·~ g-e
Fonner l&O Altas Sewage Tre.tment Plant Acquisltlo,
Lessor/Se1hr: Cft, "f los Al tos (los Altos)
re.anl/PurCh .. er: Cltl of ,.1. Alto (Pllo Alta)
PF"l!II!5fl:' 13 .. 2:" .cre parcel at !nd of San. A."ftonfc A.et'lue (near Cast1 Avenue). See
«,ap "ltached to lease/Purthase Agreement
SQl1~ "4IIute transfer site; pa.rk, recrntron and o"pen; S~Ct; or 1nterlm Ir;lS!'S
pending development.
Re.tlllPurt~.se "'''''hlnt: $l80.943/year fer eight year. (Based 00 11,540,625 present
•• 1ue It 9.25S).
ntle t.a Proeanses: Durtng the efghl year lease!purc.ltase period. title remafr'li h l<ls
Altos. Subsequent to eight" year, title vests equ,l1, I. to; 1.1 tos and
P.l. Alta.
JIIanagement and. Contro1: Ptl0 Alto 511a11 J!1anage and co..,trol the Prf''':1is~s. includi~g
ttle rtg'flt to dec1de upon .. s~s. desfg!:!; and cO!:'Jstructio~ of ;illyro\,'E>1lents. and
disPQsftion of the P~emise5 {los Altos to be pio~l~ed an op~aftunit1 to
review-and (Qffii'i1ent on "Tins).
EJisposittop! of'reGTses: If 1',1". Altet decrdes t~at Pre-l'Illses ll""e riot S;Ji"tabTe for 011
transfer st~tfon o~ other ref~se handling facllity. o~ park Oi ope~ sp~ce
purposes and to be &Old~ Palo ~lto's proced~rss for sale Qf s~rpl~s
p~opert.J .nl be used'. The net ~ro-c.eeds shaH b'! s'hared pqu.!111 bet~el1
;>a10 .... ltc a!'!~ l~s. ATtQs. subject to los ~ltosl-rfg'flt of first r:fLl's.!l to
rep~rc~ase 1alo Alto"$ SO~ s~are base~ on a~ apprafsal c!velo~ej by a
mut~al1J ugr!ed ~pon ~.A.J. appraiser.
If t1'!e site has not b!e~ developed for I: refuse transfer or pro-cesSl n9 sfte
~thlq 1~ years and decides not to dispose of it. los Altos may elect t~
have P.lo Alto purchase los Altos' SOS share b~sed on sa~ of t~e then
current marlet value of the pro~erty" as deterrn.ined by iiHl aPDraisal
de'VeToped tj 011 mut\1allJ' aQre~ upon .11. .... 1. appraf~r.
D~vel09ment of Solid Refuse Project: Should tne Premises be used to develop a 501io
ref:.ase trlln$fel* 5t~tion., 'it sball be delfelo9ed by a jQtnt pOllf{ers authority,.
nOI'l-profit corporatf~rJ or othe:-third party devf;loper/operato-r-.
PaTo Alto sllall negoth.t"e the teMlS of sale or rental of Premises ,p.ro'{ided
that:
. -,
.. -~ ..... ~
, .
• to. Altos ... y purc~.s. up to the I • .,,, <>f 3ZS of ~.To Alto's purch". of
capaolty or 25,200 tons ,,0,.11,; upon the $Ome terms is ,.1. "'Ito;
• Polo "Ito .od Lo< J.Jto. shall lIlJt,all, Igr •• on the nnt., t. chrged.
If to< Altos Inc! hI. Alt. UMot .gr •• on • rent.l the, the Premls ••
shall be offered for sal. to the dev.loper/oper.tor;
• If sold to deyelope~/D~r.tor. the saTes prf~e will be set It the c~rre~t
Iftirtet velue IS dete-nnfnecf by mutual1, agretd Up~D M .. ~ .. 1. apprJfs!r;
• Net proceeds of any rental I)f" sale will be distributed equlll, tletw-een
,,10 Alto .od to< Altos.
SubJettfcg: Palo Alto rray sub1ease tP'-e Premfs.es for purposes. conshtent -wit" the
a9reement~
,'~ i
Project No: Ii-to. ~lt,.·82IU
UB U.'SE/l'U~CHl& ~l:l:!\EMl h .... d. 0'<1 ente:ed Ir,to t~!. ~'Y of
• 1984. ~1 ar.d betwu", the City Df Los A'tos .. I III.1nfcfprr-corporatf[)n
('lESSOR'), an<ithe CitI of hlo "1to, • ",oicip.l tO~l'orotlon <'fEMAAT').
~EOHLS
1. lESSOR owns prOpert1. for.merl] ~5ed is a sewage treatment p'a~t~ S~!d
pl"'opert.1 h. 5geciffull1 described arld shown ill Exhibit A. The property is
no 1onger.~e~ed bJ ~ESSOR for I sewage treatrn~nt p'ant~
2. l'EfWO' de~hes. to leas! the e!"oUre sit!! aoo acquire a Hfty pe.r-ce!1t fee
fntH2st f~ PROrERTl' to provide f\.'ture publiC: purposes including .. but not
ae-ce5saril, Hmit~ to .. 21 future solid refOise transfer ~ite.
NOW' inER£FORE. 'fn coosfd'fratfon or these premfses .. the parties P',ueto i!gree _~S
folIo""
Subject to the tei"T.'rS a!"rl conditions S-!t furt" 'h€re1.lI:I LESS.eR. 1eas.~5 to T£~~Ni
that cf.t&iN ,property {PREfIIIls.tS} de'Sc.,."ibed" ir1.:l snollt!1 ;/1 £)(hibit " wtlicl'! ext;f~it
is \~orporattd ber-ell and made a ~~rt hereof.
II. PURPOSE
TElltAhi may, thro\J9"hout the 1easefpl.lr-c.hase pha~ of tMs Ggre~er;t, l'$. S,I,K!;. ph!':.!.
fs 6efi ,.1 i. Clau« III (HR>i./CIl'1MENCEMEHT), use tn. PRE~ ISES for v.H d pu~' i c
purposes lncludh9. but not nec.eSs.ari11 limited tlj; a so1id -waste transfer s.ite
and" maintenance yard or other refus! processing uses. parr. and recreatf:H'l croci
opell sp~ce c~.,s:ryation {)(' interim 1.1SO:'i p!:'Miog 6avelcpme:nt Df P~E~lSES. TE~.\N:T
agrees t~at it -wi] 1 Dot l'"acat_e ,_ or abandon. the PREMls.ES during Hid
leas.e!purc'hase 'p'hase of tMs Bgr-eer.'lent. ShDU~d !.f11 portion Of' a\ 1 of t'l-te
P~EJIIIS-ESr as SnOW" on h.'hibit .... be devoted to . open spac.e or-re~re-1!tional
purpo5fs cpen t~ Pa10 ~'to res1dents. TEM'~T agrees not to deny e~u,yalent
ac.cess t~ resid~nts of the Ctty of los Altos.
III. TERMlCO~fNCEMENT
The leasefpurchase 'phase of ti'lfs agreement shall commence on the fi rst day of
the· oont'h fol1ow1"ng the signing of t'lttis. egreeme1'lt by both tESS.~ l;nd T£t\~NT oM
shall tennir.ate (lO the eighth {at~) eMual annh'ersary .date of tr.e '()'l1:n-:!ncer.~fnt
~f tl'lis agreement un1ess soorler terminat~1 is $et fort.~ 1111 C~a\lse ... 1-{OPI:I1~
TO PURC1.A$E}.
-~'i1;'> .'
,: •.•• :i;t; .. ' ;,~>", _~;:. ::;'j', ~.:~ ~ ... :'),~: ,"S-<_
-' .'
.
IY. RENTAl.
.... !tont'l ~"O"'t5.
------.. .:,
-. --,'
..,c'
o
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TEWl Igrees tg Plj to lES,SOP.:. is renul for the use a,"'1 occllpanc,1 of the
PREKISES durfag the l!'asl!/purc.J!asl! p't1ase of tMs agreement, an annual amour.t
eqlJll to $ZSO.943. Sald annual: retital payments s"ha11 be pa.ld or. or before
t~. c"",,",ncement 1.t. of t~1s .gre_.t, IS set fort_ fo CTaus. III (TER,'ij
CDMM£~E~N') lbo~el and on 01 before t~e ann~a1 InnTv~rsarl of the
corrrnencl!r.lent date tlv"olJghotJt the luse/purchase ptlaseo or tJlis agj~eemant.
S.,f rent., payme.ts .~all be reduc.~ by $163.00 per """t~ so long .5 t'.e
1 eas~ between LESSeR tlnd Jnternat~on&l lfutrotlfcs. Inc •• is fl!! effect and'
$314.00 per mont~ so long '5 t~. le.s. bet.ee. LES~ .nd V. Josepb "Cntavo.
is 11 e-ffect't pt"Q'Ifded 'hcwever. tl'lat sald 1ea!'es shaH terllinate (In Of'
before September la, 1984. Renta1s col1ecttd by TeNA.NT subseq\..'ent to
September 30, 1984 in ""coed,"c! ""'t~ thus. WlI il'lANAGtME~T AM CONTROl. CI'
n::MISl:S) 511l1l be split equo1iJ' bet .... lES~ and TENk~T .nd ~.!d to
l£SSOR:. h arrears together witll the blse ann.l.ral rental amount set fort"
above. late 'pa;Ylllent charges or otfo.er surc",ar3es imposed ·'U,POrl stJbtenants
.~.11 not be Inc1uded , •• dditlon,) rent due lHS~.
lEltAN1 shall a1 so pay to. tES~. as addit;ona1 renta) her!urJder. tne amOunt.
cf any rental iMerriipt;on ()(" use 1m! occupanc1 inSLIranct! pr-emfums. if arty.
paU: by LESSOR for renta1 'lnt'!rruption: or IlS:! a.~ ocelJpanc], insurance
c!escrlbed II Clause II (HiS LJIO A.'j(;O, peo.ielee! loat TENk~T 'hall have the
optton of procuring 5ut~ insurance at its own expense la tne ~a~e of lESSOR.
TEWI shall pay sue"-additional -rental relatlng to insurance to LESSOW:
witJIti!l! bent,. {2-0} days. of sJ,/'oroission by lESstrR of proof of 'pC!yment of SIIc.k
hSl.lrance prelllfulils.
(ac)) annual rental pajme:lt shalJ c.onstitute consideration fo.,. H~='rfl"'S I.!s.e
In~ occupar,c, and the cont;:nue::2 qui et enjoyment of the PRE~lS.f.£ for the
twelve .roontlr! ~rioC! subsecrlJent to tl'le due date for suc.h annual payme,1t.
t€.s.5OR: and' TEftAJ41 agree that SLlC~ re~tal .represents the fair rental nlut! of
the PREMISES consfdering the hl'::!rest res.erved by tESSCQ; as set fo-ra ' .. :1
tlause 1 (COHVElANCE Cf FEE/nllE Tef paDPERH), and furtner considering t~ •
.. su and purposes whfcll may be served' by the PREitt:S-ES and the benefits -r.ic)j
will accrue th.!refrom to the TENANT. lESSOR:, the gerleral pub'ic and other
persons .slng t~. PRE~lstS.
8. Ap~rDeriatiQn/Payme~t.
E.a.c.h annual rental payment as set fort~ fl1 subpuagra'p'h ..... a':iO\le sila'l be
Jla.id 'hi hwfllll ooney of tr.(! Uofted States of .Ar.\erfca t(} USSOR at tne
oddres. orul location ., pro,ideO j. tl.U5. IV11 (NDTJCE~l, Atte.tlo.: City
Manager. or 5UC~ other iTaC! is lESSOR and TiNANT ~ay mutua111 agree.
C_ ~ent!1 Abatem!nt.
The rental shall be abated" proportionate1.1 during any period 1111 wh!c."". by
reason of an.y damage or destruction or partial tak.ing by eminent doozh
{otn-er thar; by cond'emrlCltioQ of the entire P~El'ilMS ..t1lcl\ is proY~ded for h
Clause kIf' (EIiliI/(EItjT OOMAl.l) .. there is 'Substantial interferer.(e .it .. the use
and occupar\cl of the-PR:E~lSE£ elf ani part thereof by tl'le lEkAN1. h. the
proportion whic.'" tt'le portfon of the PREMISES teooere1 unuseab1e bears to the
whole (If tne PREjII\ls.tS. SIJC~ ~aternen-,: shall tonttnue for the period
•... "" ..
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Comrn€ndng wit?!. 51J~~amage. d.estructfOt1 r>f' taking Q et"ldfng: "Wit" VI! c.QITI
plftioQ of repill1r or r~o,.,structton. h. Ute e''''ent o( ir\.y s:J(.l\ da,t'-age.
destruct.ion or taking, Ufs ~sree~er1t s.ha11 c.ontinue fn hI) forc! arxf
trfoct.
,. COM\'tHNCE Of fEE/HTl.l 10 ~OPEHY
A. Title to Prope.rty Our-iDs Term of Asree~nt.
Title to tne PRE"IISES St1aH rema.la ir.t LESSOR durhg the hase/pu(thas! pl1ase
of tlrl1s agretment. Tith to al1 fr.lprov~'1ts. fhtrJres ard appurtenances
lI1a1e at" added to .. alid tftle to all personal property plac.ed fa or about ttle
PREl<ISES by TE!iA~ shaH rem.i. I. the H~A~r during the l .. s.!purohas!
'phl!Se of this agr-eement.. h. con.sideraUon ~ the ot~er t~r~ a!'\d provtstOM
cf t~h ag!"!ement .. title to III PREI'I:1S.ES and improvemants thereon. and fil'"
turn and Ipp~rtenances therato, s"hall V!!st h TENANT and LES~ is i!!CCCf'ci
an(:f with '5tJbparagnpl'l a .. beTeN' at the end of the leese!purchas=! phase of
t!1s ilgreE;ment other· t"han Z!S 11 res1j'it of default by TE!rli\NT. U.SSU\ s~al1
t~ke any ac.Hons an!! ex.ecute lny grant deeds or otf'ler d~\Jments 15 mey be
necfs5ary O~ app~Gp~f.te to confirm and ~est SUCA title f~ TE~NT end L~SS~
" set (<>rt~ bel ....
B. Tit)! ta Proeerty at Ttrmfnation of A;re~~ent •
.At t~ .en" of the leaselpurc.f1ase pMase of t~lS agreement. (lr upon T!~'\~T '5
exercis.e Qf its ~tlon t4 purc.hase hi. eccoNa.nce ",tho thus! VI (OPTION TO
PIJRCKASEl. LESSOR ~nd TEIII.A.-'l shaH eec~ own an t.!ndhided' one-!ialf inter-est
h PRE~lS£S as tenants h c.omr.lun. 511bject only to lnatters of public recof'd
H set fort" hi .Prelimfnery Ii t1e Report I(u~bel'" -t~ 457463 iss'Jed 00
Sep.tem'ber 1. 1.g~, by 'Westera iH1e !~sl.irar;ce Cowllal'll and any su;seql.lent
.matters lli"!," "have been. approved .. il"l writing. by H.I'iANT. tf"SSOR w;;-rar:ts
tl'lat the oniJ unrecordJE!d ~tters aff!:!ctl!'lg VI!! PR5"iISES are l..} i lease
dated' Septem!>er 30, l"98Z. t:l I,..terr.atfo-nal lIlutronf,cs. a copy of 'WtlictJ l1as
bee~ pro~ided to TENANT and 2.} a 1974 l!~se t~ w. Joseph ~ont~~o~ ~jc~ 1S
(:ur-rerr:tl.J on a IiJO(It~-to-month Mldo~e!', a copy of which "has a1sJ beer:!
prollic!"ed to TEIIlA~T. LESSOR: s"hall continue to bS! res&lonsible for t~e
admlRlst.ration of t!\es~ exist~:'\9 leases i!'oc.1IJdi:ng the (.'Ol\et.t;:on of rent
2.n-d: ensuring vacation of the PRE"'ISES by said tenant's upon tl'-,e teMllinatfotl
of the leases, wtlic.1'I s1\al1 be or: or b~fJre September 30. 1984. unless an
extension Cif the t-era 1S l:greed to by TEl't.~~T. USS04i: snal t tei::e er.y actions
b.nd execute ial"'j srant ~eeds or other doc~ments. as may be necessarjl or
c'ppropriate to confirm and vest title to PREMISES equaU, fn the TEAA~T ar;d
·lES~ iii se-t fortk abo,-e. Sa1d' srant d'ee1 Of' otfle-r document s.hall directl,
or by reference, i[)corpo!"'a~e tne pro.,.h;ons of "Clause 'r'Il {!o'.ANA.GE."\OI.T AN!)
CO~1RDl ~ PREMISES}. LESSOR 11so agrees to cons.ent to de--ann!xation of the
site fro!1. the Citl of los AJtos and" annexation of the site to tne C(tJ of
P.10 Alto, upon or ~fter 5UC~ vest~ng i~ LESSOR znd TENANT.
VI. OPTION TO PURCHASE
TEPi.n,.JI1T shall have the option. on any a:1l1fversar, date or the cornmeocement af
t'rih agreement throl.lgnout thi! 1ease1purc"ase pP\z.se of tl'lfs agreement. to piJr
-chase its fifty percent {50":) interest HI the PREMISES. fnc.1uding ell imprOlle
~~nts, upcn payment af iI~ optlo~ price equal to the rema10ing princf~al payments
ass~min9 that the rental a~o'J"ts set fortll ic Chuse n (R:£ilHAl) .. exc.Tudi ng ar.j
amounts (Of rental continuation or rental 1~tel'"nJption fnsural'lc-e,
\ ,} :~, ,~~"'.:
.-'.' .
.. "
, :
o ~ .. ~ constitute arnortizlt'o~ of fnterest and prlncfpal of Sl~540~&25 at ~i~e a~ o~e
fourU perc.rot (9.~') fotorest for I period of eIght (a) ye.,.. LESSOI! ,h.ll
tit! any a~tfon5 and execute al'lY grant deeds or other documents IS lliay be. neces
s!r.11lr approprhte to tOr'lffr.l a-,d vest tftle t~ PRE"'iSES eq:uall, 1rl1 the TENANT
.nd LESSOl! II sot fort~ 10 (la,s. r (CONVEIANCE OF FEE/TITLE TO l'ROPE~n). Said
CJrtnt deed or oUter cSo<:ument sh.!.lt dfrect11 cr by reference. t~"lJrporatt tf'.e
pro,lslao, of thus. rll (M!lAGEME~l AND CO~TROt OF PRE~ISiSJ.
WI!. IWtAGWNT AND CQ'(TROI. OF PRE~lSES.
During and after the l!ase/purc"!s! phase of this agree~~nt. lE~~T s~all manage
and tonttol t11. PR£~lS<S. exc.pt as may b. specific.l1;r indicated I. ot~er pro'
yhfons of tJifs Igreement, rrtCl1Jdfn~ the rfght to decide upon the useS 0( the
PRE~lSES. d.'iin and constructlan of ,nl Irnpro-.ments t~ be bvllt upon the
PRE~ISES. and dlspOiit 10. of the fR<~ISES should t~e PRE/IISES be deemtd unsuit
able or sur,lus t. the needs of THP.NT. p • .,lded t"t L£SSOl! shall be proylded
th! oppo-rtllnity to re~iew and' c.omment on plans fOr" use ~nd d'e'lelopment of t;,e
PREMISH.
~. Disooslt!.n b, TE~NT
la the ev!nt that the PREIIIIS-£S. or I: portion thereof. ere d'eeCled by TE"i.\NT
to be undesirabTe. ur.s(ltubl! Of'" surplus and to be s~ld eftner during or
Ifter the Ieasefpurc.f1a.se p"U'!!: of tk{s agreement. tE~r([ sf\al1 corn.}I1,. ... ith
its prcx:.edu-res regarcH!lS,l sale of surplus real property; "olrrl'ever. l£SS~
shal'. "'ave t"e ri9ht of first re.fiJsal to re;urc~ase the r'i~hts gra.nted to
TENANT upon the payment to TENANT cf an amount e~ual to one~~aTf of the thf~
current mar\:.et nllJe of the PRt~IS.ES IS de-ternllr,ed bJ a TI\ltua11y agreed upon
~.A~J. apprafser Jss~ming I 'fgne$t a~ best use of lig~t industrial ~se for
tl\e non -cross'"'hetc:tled portion and. ~en space conservation f\j,r the crO$S-
I'taJc~ed p~fot'l a5i Shown {lr'l £~P\H~it .... less af1y amounts wflfclt may tne!1 t:.e
ciue l£S,SOR as. calcII1ited ll~ing the amortization data tlf'ovged in Claus! 11
(OPTION 10 Pl,"<CKASO. Should LESSOI! elect not to repurc~"e ;ENA.~T·s
l'1gnts. TEN.A~T sha.H proceed to dispose of the P'1E/II;ISES or ,portion of
FR£IIIIs.ES. and sl'I.ell pa, to LESSOR one-half {t/2l of any net proc.eeds. frOm
sueR sate plus If'lj t'emaiAing p,..incipal and accf'ued interest Whic.h r.ay ther'l
be d'ue lESSCR calc.uhte::! ~sing the amortization data provided fit C.lause n
(OP~!ON T~ p~':H,\;n.
B. Oispos;tio~ b~ l€SiJ~
In the 4!.V'ent Tt.J.h:' !"las not develope1 the non-eross. ... hatched pert '\l(', of
PRE~lSES as a scli~ ~!ste transfer site and ma;ntena~ce yard O~ other refuse
provess~ng IoIse w1t_;~ fifteefi (lS} yeus of t~e ~!te of tMs agree!ile~tll
lESSOR may,. at anI time thereaft~r. elect h convey its fifty percent (50':)
,nterest i. the P~E~lSES to TE~~KT and TEh~NT ,~a1\ thereupon pay to l~S5D,
i['!l amount eQual to 50:. of the thea current market 'talue of the saH portion
of the PRE""jSfS as 6eterm~r'led 'by a I1t.Itnll.J agreed upo" M.A.l. designate'i
appniscr assuming a bighest and best use of lfgr.t fncfustrfal use for the
non cross-lutched portio" aM open space cons-erntion for He tross-l1atct'.ed
p~rtion a; s"OiJiTl Of) Exhibit A... Sh::>uld LESSOR make sue,", an election .. T£NA!'tT
may, in-lieu thereof .. sell the PREIl(ISES 1:":1 accordance wtth $ubparagrap'" A.
above ..
C .. Tenns of 'IIrchas! and Cost .of Aoe~aisal
h the e .... ent of I dfspo-sitl'iIl fl!l actOf'd'ance wit~ either subparagraph ~_ 0"
B .. above" the cost of the appra.isa.l shan be bOine eqJa'l, by iENA.Ni I:\d
" ..
lfSSOR. SO,uld lES~ ond T'~~NT oot b. abl. to 'lfi) on on ~.~.I. desIg
nated .pprolsor, one oh.11 be i!j>pofnted by the pre'!~i,g judge ;>f tll.
SJ;>erior Court' of Santa Clara County. LESSOR and' TEAANT rney by tnl.Jtt.!a.l
e~re~ment~ !9r!~ ~pon extende~ payment te~s for any SU'" pur,~ase.
~ lr"lterill ~anaQement t[~ANT shalt ass~~ interi= ~~agement of the PRE~lSES <~~ncing ~n
September 30. 1984 and shalJ compl1 with Hs 'pr~edure5 fo,r fnterim rental
cf propert1 pending construc.tion of I sol f6 refl"tsl! re1 ated' 91Cje-ct or otf1er
perilitted wse as set fort" 1ft t""fs agreement.
'III. IlAIlTENAl4CE AND O~E~T10N
TE .... 4.~ shall. notwft'hstandfog: LESSCJ/;Is cbH.gatfon. to id~lr.ister e;(istfng leases:
.ffettin9 the P~E~lSES '5 set fort~ IB tlause 1 (COK~EtAl!CE [1' fEE/ TITLE TO
PROPERTY}. at hs own elCpense, mafntah. or cause its sabtenants Of' ilgel'lts. ff
lny. t~ IDalnt5t. the PRE~rSES and ell imprcv~~e~s thereon i~ good order, ~o~di
ticn, and r~p!ir.. lE~.a.n shall provide or co!loIse to be pro-iiC:e1 all securfty
serltice. cI15tlJdhl serv;c!~ garbage. ji!r.itorIal ~rf!ce. po ... er. gas. telephone.
If;nt. P'teat~n9 ilnd water. fire protectto'l artd 11) othe:" pu~lic utility serll')ces.
It is understa.od ard agre!d t~at LESSOR shaH hve flO obligation to incur any
ex;per.se of an~ tf-nd or character fa connectforl wit'-tne IT'.anag~ment .. operation.
or maintenance-of the PREJI\lSES during the ter,l of t"is agreement e::(cept as pro
vided fo this thuse and i. Clause II (IiSURA.'lC£).
U. DEvtlOfMElT Cl" SOLI~ REfUse PROJECT
S~,o'Jld PRE ..... lSiS tie delfeloped to ser,,! as a solid re-f!oJsi! transfer center. 0;
other soHd refuse proc'E!sstl'lg ElS!. SlJC1'I lise s"'all be dev'E!lop.e\l ar;d' oyeretecf by a
joHlt .P0 .... ers .,iuthartt1. non. ... ~ofit c.orporation Q(" other t~'rd parts CLOPER,tJOR,1 J
Cieernej by H:1I:ANT .to be a;>proprhte. TE)~ • .1'~i snall negotiate the te!":T:S o-f a sale
0,-r,r,tal of FRfM1X:S to said O?ERAIOR p<"o,jjed that:
J. .. ~s a. part c.f any rental or sale. to the CPEU10R. LESSOR. s.1-tall be: 9I.lHa1"'tte~:i
the right to purchase up tt) the 'es'Ser of l} tfltrty-eight (3-S) percent of
H"IANT 15 purchase of capac-it.J rtght'S or 2} 2~.OOO tons anonual11:1 upon tMe
·u;ne teNls and to-ndftiol1s i!S TENA.NT and' ot~er ager.~h'S.
B. lESSD'{ Md TEAANT 5ha11 trut:;al]1 agree en thg pr-op{)se1 rental if PRE)II,ISES
iiC! to be leased. Should LESSOR and TEP{Arn rlot agr~e C'r'l a:1 aptlropdate
rental ~;it'htn Me ,)I'!:!ai of T£~,~.Jf!·s c-o:i1me~c.e~ent of negotiations "";tl-l sald
O?ERAJOR III PRE~lS'[5 s~.a-Il be offered to 5!ld OPEIUIOR ill accordar;ce 'Wi th Su'b
paragrap~ C. be1o~. and if rejected by said O?tRAJOR then sold ;0 accor.1ante
.. it~ CIe". HI (MAI\A.E~E~T ANG-CONTROl. Of PREMISES);
C. The sales price, If P~EMISES Ire to be <old to said OPERATOR. s~all be based
on tr,! then current marl:.et value of P~E"I'IS-ES Ii established by i!I r.!.JtuallJ
agreeabl'!! 1( .. "'.[ .. designated apprafser. Sl".ou1d' LESSOR arK! TENAAT not agreof!:
OM a~ ~ .. A.I. appraiser wit~in three months ~f tonmen(emer;t of TENANT's nego
t iltlons witr. said OPERATOR. an appralser shall be appolrlte'd by the prestd'
lAg jowd'ge of the Superior C~urt of Santa Chra Count,.
D. The net proc~eds froll. .~ntal or sate (gross proceeds less dooJI1e.nted. tosts
related t:) the col lectf~n af saTe or rental proceeds, e.~. appraisal costs,
Tete pa]1'1h;!nt c"arges. etc .. ) snall be distributed equally tetwee., LESSOR and
..
, .
-'1'-----
"., to. <" -,
• ,!~~... -.
TE,.W. l£_SSOR. ''5 ent~ment to net proceeds fror.! a D of .P~E"i~S shal1 be p.l~ to lES~ vjt~l. Wlrt! (0) days of receipt of proceeds fro~ said OPE~A
fUR. lESSOR's entftlement to net rtoce~ds from I re~tal of P~E~ISES to the thfld
party shall be pild to lESSOR \Q arrears on _ qu~rterl, b~sfl.
X. ADOlTlONS AND tl'jP"ROVEJo\E~S
Tt.1i.AKT Ir'lcf it!. 4Subt.en~nts i!.M i!.g~r\ts. if I~i, shall ha~t!. the right during !oM
after :.he tease/purchase ~h~se or thfs agreement to make any addftfcns Of'"
fDljlro,emer.ts ~ the PR£~ISES {fnoloding .ny !DIjlrovement, " edst,nc. IS of the
d"1tt! cf exectrt10n 'hereof .. ) to attach fhtures .. structures. Of" sfgn'S, to fil. any
persc.!"o!l propert,.._ to the: jmpro~e~er.ts en t~e PREI'II;!s.tS .. and t~ r-emO'\le or de-ITlD1iS~
anI exfsti"l')g' or su~equentll COl1stf"'ucted improvements on tl'\e PRElIIlSES. LESSOR
shal) be proyided an opportunity to rewie~ and comment on anJ such add,tfons a~
improvements.' ~
11 • HIS U RAIIC E
TEKANT shall. during the term of this agreement, teep .. o-r cause its subte:1ant'S
O-f' ilgents .. ff anI .. to 'keep the P~E~lSES, any improvements thereon, and applJrte
MnCe5 and permanent eq~tpment there-1D. insure-::I agafnst loss Of'" damage d"ue to
ffre, 1 fg'P'ltr11D9.· r,;-,-calism .. mal icious misc.hfef, riot ard chit cOf!1mOtion a.~:j
suc~ perils ordfnarl11 define~ 2S -extended coverage-and maint!i~, or cauS! fts
subtenallts~ or a-gents. if af1J, to maintairL hSlJranc.e a9ail'lst all direc.t or COI'l
t i Dgent loss ()(' .1f ab 11 it! for da:!l.:!ges (Of'" personal i~ju rt, d"eatl1 or pro,pe rt.1
da.mage occ.asioned by operation of the 1=RE~~s.t:S ~nd anl impro .... e-1!lerlts thel~eon,
IIp~urtenances Clnd perlllar'lent equipment tnereh, 'fa such amounts subject to
d"e-d\,c.tlbles customarily carried by the TEAANT witl'll respec.t to similar prcpert!.
LESS{m shall be named as an addit i·anal insured.. Such insurance rfoay be by sel f
hs~ranc! ()(' other alternative risk. lIar.ag~ment Pf"'ograms. T£WT agrees .a~d
sh«l' cause its subtenants Of' .a~ents, ~ f any .. to agree to apply the insurance
proceed"s t!iat are received as a resl:lt of suc~ damages ttl t"'e f"'ep«~r or rephce
ment of the damaged proper-He'S or improvements thereon.. LESSOR snal', at its
-option, obtaia and maintail tnrol"lghout the term of t~1s agreement re~tal inter
ruptl0Q or use and occupanc1 i~sura~ce to co~er total or partial Joss of t~e use
of th! .PRE~ISES and imyrovements tnereon is iI reslllt of ti r.e. ligl'it!!loinQ. Yilr'ldal
fsm, RlaHClOU'5 rtfscllfef, riot, or chil cOr!lmotfon, Of"'" SUC'" peril s of"dil'1artly
d'efi1'led AS -extendet! coverage-Of"' .. as a result of flood Of'" eart~qL:ak.e. h an
amouot suff"icfent to pay approltimate1y one-half of the ann~al renUl payment
descrlbed io Clause IY (REIiTAL) (",eluding the rent.l attributable to TEN"'~T's
reilllbursement of such fnsura~ce prern~ums).
TEI'tAHT. t., t~e extent pennith.d by law. agrees. to de:fend'" indemnify and hold
lESSOR a;;j its offfcers .. employees and agents harllleS5 from and asair:lst any and
.11 losses .. claims .. damage5 .. lhbllities or expenses, of In)' con.celYab1e Und,
reslIHi!'l9 from occurrence of any of the risks c{Jnte-mphted by the first senter"fce
of thts. thu'$~ to the PitEII\ISES .. Ir.y imprc~eme.nts t'her-eon, ~nd BPp\.lrt~M!)c.es and
perma~ent equipment thereh .. except for the negHgence of U:SS();:I: .. its employees
or agents.
lll. ISSIGNMEI([ AND SUBLE~Se.
TEJtANT lIay i!t any time. and' fr!ll'l time to time, pledge. asslgn .. or other"; se
transfer this agreetilent Of" ~n1 )nterest of the TE~ANT heref. or sublease the
PRr~l~S or anJ impro~ernents thereon or anj part thereof for purposes co~sistent
wit~ t1'lis agr,eement. TENANT-shaH at all tim~ remah liab1e for t"h'!! perform
anc! of the c:o'\lenants _and c.onditions on its part to be performed he:""Eund'er not-
" ,oc.b1l IP~O~ LESSO~ IS tile agent and atto~ f' fact of TE~ANT to
reTet the PR:£ ... ISES-.. or any part thereof, from time to tfme, eittler fr'l
t~ lESSOR's nlm" or othe.""'liise. upon sue'-t!rJllS a~ cor1ditfons and for
SlJcb. IlSI!: Ind perfod as the lESS~ l1ay c!eetl ad'f'tuble and to re."'lo .... e ell
per.sGns h pcissess101'l thereof Ir\d all pe.s.,nal property .. +tatsoevtr
.It •• to~ upon the PRE~IS£S. TENMT agr ••• that the to"'" of t!li;
agreemellt c:onstftutfo ''in and stJfffcient notfGe 01 t~~ right of the
LESS<JP. to relet t~e PIE~ISES 10 the .'ent of s"C~ • reo,try vithout
effect( n; I S1Jrre~1!: r of t"'ts agreeme nt, and fl.l rth£r ag rees t"a t no
IOU of tM LESSOR 10 effecting such "letting s~all constitute.
surremler car tertllfnatfon or tkh agre-ement frrespeoctfve of the use !)r
tne tei'l'll for ... fJ;ch such reletting is m,,~e or the terms and cond'itfoos
of suc" nhttlng. or otherwisl!'. 'btlt t~at .. on the tontrar1'. fn tne
event of sucll <lef"Tt by TENANT t~. rfg~t to termlnat. t~ls .greement
,h.lI vest f. the LESSOI1. to be .ffecte<l I. the $010 and a«l",;'e
manne~ provfde~ for 1~ 5ubparagfaph (1) hereof.
I. TEAAIff s~.l1 be deemed to be In def"it llereund .. If TENANT or .ny assignee
5111a11 fi h ani petitign M' institute an;,' proceedfllgs Ur'ld'€lo i"'J' act or Icts,
stat! or federal, oea1in9 wit" or relating to th2 subje-ct of ba"kruptc.1 (H"
inscTnn,y. Dr under any amendment of slJcll act or acts. either as: I
bankrupt Jl or as art insoherrt. or as a debtor .. or frl any 'Similar capacity.
wherein or wtleretly TENP.NT iSh or seeks Of'" prays to be adju~fcated a
b!lnkrupt. ell" 15 to be disc:harged (ror!! a.,y 0-' all of rE~A~T'S detlts or
ot'oligatlons. 01-Dfferi to TEAANT 1 S creditors to effect a cOIliposition or
extension. of tim! to pay T~AANT'S di!'ot; or asks, seets 0(" prays for a
reofganhation or te effect a pla~ of reOf'"ganilatlon, Or" for a readjustment
of the TEItA"lTtS debts. O.f" for any other 5fmiTar reH!f. or if ar1j' sue"
petltion o~ if a~y suc~ proceedfngs of the samE or S1milar kind or c~~r3cter
be filea-Of' be instittJted 0(' taken egair:st TENANT or if a receii-:r of the
tH.lsiness or of tne property Oi" assets or TENANT s~al1 be ap~o!tite::! by any
court. except a receher appointee! a.t tne iil5tance or request of LESSOR. or
if T£NAHT s.hall make I ge~eral or any assignment for t'he benefit of U~e
T EAA.'fT 's <.r ed i ton.
c. If tESSOR s!'lail. fof' a period of twenty-five (2S) drays after ..... rltte.r':I notice
t1iere~f fr:>ill. TE"ANT. fin to tup or perfoMl any ob1igatlon. c.ovenar,t.
agre-ement or ,pro\"i"sion contained l'Ie,-efo t" be obsened c.r performed by
lE-SstlR. t'f!e LESSOR s~al1 be deemed to t.-e in defClult hereunder and TEN".NT t'n~Y
take whate-ve:-action at law or fa equity lI1ay appear necessar-y or dfsira!:lle
to enforce the obserrance cr perforRlar!ce! of ar:y such obligatlor'l. c'Ove:r.ant.
Igreement or provision~
Eac.h and all of tr.e remedies gh.en to LESSOR hereunder Of'" by af11 law rlO\r(
uistlng Of' hereafter er'\acte-d are c-umulat1v-e and t'ne e~erc.ls.e of any cl'le right
or remedJ shall not impair the right of lESSOR to any or all other remedies.
XIV. EJoIlNE,T DOOU.
If the enUre P~E"'ISe:S shaH be tal<,!-Il under the po'del' of elll:'lent dcm'ail'l. t'he
term of tfi1s ag-reement shall cease itS of the· day that pa'S5~SS'0I1 sT-ia1\ be so
tai!n. and anJ award' rr.acte i!! the 8ninent domai~ proceedings for the taUng of
P~E~lSl:S shan I) be p.id to tESW< up to " .. nount ,.!llch would equal TEIIA~T's
pa'yment h LESSOR. if TENANT would tla~e ex.ercised fts option t.o purcnase
-.
--'
'. I.. witi't~tandiog al11 SIl(.l\ @.19n{t'\9. transfer-rh'g or S'J'b1e'fifCl9 ~k'l! ft.3! be I:"~d't.
lESSOR s~a' \ be prQ .. ·id~ an OP?ortIJl\it.1 to re'lifw and. cDJ1irnent 01'\ .(I,i p-t"opose-<1
sablt~$es or encumbrlnces. ho~Y~r. fiilure by lENANi t~ ,ampl! ~th t~is rtvi~
Ind comment pro'(hfon sfollll not \!'l"aHdlt.e any sub1eas:es or encumtralict.s e!'tte.re-j
fnto by !. subtenant or ether r>art)' far yalid conside-ratio~. "'
llll. BREAC~.
I<. U TEMMT .II.n hll to pa, an)' ."tal payable ~er.ur.d.r ""eo OJell payment
becomes 6ve .nd Ply,blt. tl~ beIng .'pre •• ly deel.re4 to be of the ess.',.
of this .~r.ement. Gr the lEWi shan fan to hep or ?E!rfOMll any otner
lOaterhl term. c.ovtnant -Of" Gondftion t.r;T'itJ,~f\ed he.reirt to be kept or per
(or"",d b, the .TE/I,\NT. ""icll follu .. woul~ have I ""t.,111 ,d'O,!e effect on
the Interest.,~ t{SSGl>. Itnde. this osr • ..,ent. o. u~o. the ~appe"n9 of any
of the events-speclfle4 h sub'ott!o. B of t~ls Claus~. T£M~!(( shan ""
deemed to l>e 10 deh.lt ~.reund.' end I.ES5{)Il. 1. addition to an oth ..
t~9hts and remedies it may 'have: It la.~~ shall "'ave the opt'O<l to do a:flY of
the _ {.1JQ';n~:
(1) Ta terminate ttlfs !.g.reement '!II the lI'iIMe:r hereinafter pro\1~d.ed 0'1"'.
atco\Jnt .cf defauit toy ti"le TENANT. "De'; thstanding l:.ny reefl.try at"
reTetting _ of the PiE .. JSES .~ ~erein.ft.r pro.Bed fo~ 10 s,bp."grapl>
{2} ~.reof. and to reenter tn! PRE .. JSfS .1Id remove .n ~"cns iQ pos
sesston thereof lrtd' .,, pers.J<'I.i-1 P1o~ertl 'MifIBt;oe"~r sttuated UpO;1 t'rie
PR~I~S.· In. tP\e event of such toenninatfon. TEAANi agrees t.o
1.~I.t'll ,u',ender po ••• ss!on cf the paE~lSES. without let or
k;n~r.n'~ •• 04 to pay lESSOR .11 d.m.~es reeov,rlbl. at ,.~ that l£SSOR
~ay lnctJr by reason of d'e.fau1t by TE.AANT I cf16 \..ESSOR a.grees to pat
1£.\.;,"i the flir ~r1::et n1ue {as di;!teNtline1 irl e:ccordance 'Jrit'B the
pr-Q~iS-ions of the American ArMtn.tiol'l Assochti,QI'l tiertliG'Mg to rear
esta.te: laluatiot',l of any 1l":1provements, or fiv;:tures made or adde-6 to tne
~~E!lISEs by lE~AN1 to the extent t~at USS()i( d"'res to .s. sue"
il'llpro~ements or fi"ltureS.
til W-i.thout termir,a:ing t!\is agreeftlent. (1) to -('Qn~C.t eac.h fns:a"r.:e!lt c.f
rent &s it becomes cl'u€ and enfo..r,e an)' other lI'..::urhl ter:1'i. cOliena ... t Of
conditiOI1 t.Of1taifled l'",erefn to be tept or perforlMd' hi T::r;MtT ~. ic.tl
fa~hire. to te.ep Q.f' perfen by the TEMAN!' llIould have J It"!C':.erhl adl(!:!:rse
effect 00 the 'interests of t1!e tESS~ UfldH tl\is. agreement CH" (1; ~ to
exerc.he ar\,y lOO an r-tghts of ei'ltrl i!of'l.d reentr1 upon tht PRE~lSES. ["
th.e e .... ent lESSOR does. not elect to ter'lIIinett tl1:is agr.eemerlt irJ the man
ner pro.;6ed for ,0 .ubparasrap1> (II hoceof, WIANT s~al1 r ... i. liable
and c;re~ to keep or perform att tenros. covenants ,nd cond,tions h~ret~
,ont.ined to "" i.ept or perfoMled by rElIANT and, if the ?a.1<ilS£S or.
oot nJ et, to paJ t'he f .. , \ amOY!'It of the rent te the end <If ttle term of
thIs a~reement o~. ift the event th!.t tl'ie PQ.E.!I(lSES are re'et .. to pa,)l !ny
defitief'lC.1 h rent that res\jlt'S tnerefrCfrj. and furt"'e:--!9reE:'; to pay
safd rent and/or rent defjeiencj punctij1111 at the same time and 1m lne
'Sane l!1anl'ler is hereine·tH:. .... e proljided for the payment of and LESSOR:
teeehes rents therefrom i'n ant renta' payment period h exCess. of the
rent.l ~o'ided for h Clause U [RE~T"'L) for su;:. period. LESSIJI1 shall
pay SlJe.'h excess (tfte!" Ex.~ef1ses jl'lCllrr~ 11\ .connection 'IIfIt'io. suc.l\
•• letting) to rElIANT 00 ne l.,t .'Y of sold rental p.;tmeot period •
. Sh.oul.:f l~S.SOR e1e-ct t~ r~enter is herei& proliid-ed .. TENA'-'l ~erebl
:-'
-.-'-'
----~ ----~ -;----~---.------~---~
,~ .. ~ • -: .
.; -
"': . '-,.
~ 0
P~EMI~S oa the date of award. arid a'l bahn,e .~.11 ~ pard t. tne TENANT.
st\ou1 d' soc" tlkfng occu:r during V.e l~as.t'lpur'hase p~~se of this ~greei1lent. or
l) be pard equan, to tESSOI( .,.s iEilANT os t. 1"1 portio, of the PREMISeS owned
equally by L!SSOR AND TE~.
If. QUlEl ENJ<loo:n.
The parties hereto rutually eave •• 't t~ot HIIA!T. by ke.ping and performing t,.
ag-reements and' cO'tenants herl!h contained. shall at 11 l times peaceably and
~"ietIJ have. ~old arid enjoy t~. PREIIISfS without suit. trouble or h!rldranco
fr", LESSOR.
IYI. LAW GOVERNING,
llIrs agre-ement s"'al) be governed exclusi'llel.1 by the prcvis!ons ~ereof aild by the
laws of the State of CaHfo('rlia as may uist rrO/tl tll!iE' to t'me~
IYII. NOTICES
.1.11 notfc.es, sta~e=nents. demands. consents. apprava1s. ,euthorfzatfons .. offers ..
designations. requests ()I" other c.omm .. m1c.atiofls hereunder by eit'ner party to the
othEr si'1all be h .... ritlng ar'ld Shilll be 5ufHc.ient1, gfve~ and served UpOl"! the
other party if delivered perso"a.lT, Of' if maile,j b.,l' United States Postal Senice
I'egfstered Of' C€rt Hf eod ~il. rebiD f'eceipt reqllest~. posta.ge piepald' as fol-
10'" :
TO LESSO~
City of los Altos
~ne Nort~ San Antonf~ ~oad
los Al tos. Cf. 94022
hI. Alto, C~ S~30J
ATTENTION; City ~a"!;tr
Real Propert,
Mt1:flllstratorw
TO TEIlANT
Cft! of Palo "Ito ,>0 Hamilton Aye~ue
P,O. 80t l02Sn
or to suc.h other a.!::l'"fH'!S as the respecthe partfe:i may from time to t;me
cl'esi9flate by notice in'll':-Hing.
Hili. YAL1~lTY:>.ND ~\'E>.A3IlIH.
If for any reason this 19reement shall be he1d by court of cC'lTtpeterlt jurfsdic
t\on t.o be void. 'Vofdab1e. or unenforteab1! by t£ssort or TEKAMT .. or if for artj'
reason ft is he1 d by such a (.ourt that any of tJ'le covenants and tonditfons of
TENANT' hereunder. including the covenant to pay rentals hereunder .. fs unenforce
able (or the fullterm 'hereof. then ard 111 StK" eltlent t~h agreement 'is aoo
\'hall be deemed to be l 'ease from year to year under ""I;ell t~e rentals are to
be paid by t~. TE~~T .,nually ;. ~ons!d.ratlon of V .. dg~t of tne TEN~T to
possess .. Q«UPY a~ use t~e P~E~ISiS. and all other terms .. previsions and ~on~i·
tlcn5 of tflifs agreement. except to t~e extent t~at such tenns. provisfons and
(ondltfons are contrary to or incons.;stent wit .. sue'" holding. s1',al1 remah fr:l
flln forci! and effect. anc1 provided that title to the PREIII,ISES sJ1all vest frl tlie
TEAAHT 5ubstanthll, 1M accord"al"lce wit~ the intent \Jf Utfs agreement.
.:"."
.
"._-"
o
TI'Ie wah!r by efthtiH" party l'Iereta of any bre.ecl\ by the other ~rt1 elf IIny asree
l\ent. t.o~en.nt (X' i:,ond.'it\on hereof thall not O?-erltt as a. w~her of ani s~bs.e
Q.utnt breacl'J of tP1e same or li'iJ other agreement. (O~ellant or <onditfol1 f1ereaf.
XI. SUCc(SSORS AND .ASSIGNS.
nil .sre .... nt shall {no,. to t~. benefit or In s~.ll be binding upon t~
liSSOR. the TE~ and the~r respett~v@ successors Ind I~S~9ns.
HI. P.(;l\EEJIIEIf! REPRESENTS CI:W'tElE AGREEMrNi.
TlIh agreement represents the! entire contrac.t bet\tit!en the part'-es aftd super~ed'2's.
and cancels Iny and' all prnious negothtfons. arnngemeflts. represe.nttticns.
19~er:lents arrd: understandinss. between the \.ESSOIt .ind: the TE'lOO concern11"19 the
FREJI,ISES .nd motter, co •• r.d ~.r.b1.
UII. SftTJON HEADINGS;
Al] section tleadinas ccntalr'1ed 1iereil.ll are for eorlVtnience of reference 01'11, and
Jre' not ir.tended ~o define or limit tl'le scope of any pro'l'hion of tMs agree
ment ..
nill. EXE:CYTION.
n.f-s agreeme.,! may be execl/ted flft any number of cOiJ'1terparts. ea.c~ of wnicb
shall be deeroej to be all original. b~t all together snall COl'lstfttJte but on~ a~
the sa~ agre:-e~"," .. t. It is also !9ree::f that .s.eparate CCIJnte''Parts of tne agree
ment may-separc:c:l.1 be E.'(!"ctJt-ed by tne LESSOR and' the TE~ANT a1 t vit~ the same
fofc.e and effect is thougn tne same couflterpart had beer.li exec\lted by both the
lESSOR and the T£IiANT.
1M WITNESS 1j)lEREOf, the t~ssOR an~ the TEN~T ~"{e ,"use~ t .. !s '9,eemeot to be
ex!ct.!ted by thefr respect;""! officers tflereunto duly authorized. all as I)f tne
day and year first abav~ written ..
l£SS()l :
City of los Altos
By:
~M~.y-o~r~------------------
APPROVE!} .AS TO FORM:
City Attorney
HTHT:
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TE: rlAliT:
eft! of Pa10 Alto
By:
z~~.y~o~r~------------------
IJUST:
City Clerk
'"'PROVED AS TO fOR>!:
Senior ASsistant City Attorney
t£S$':~:
(it,.Cf to. foJtQ~
c _,~
~ '., • -~_. c;'
lENNI!:
Cit,. of Po,. ~1t~
A?PROvrO AS 1~ AUDIT I 4CCOU~TIWG,
ASsistant 5fre<lor
1>.1>llc \lor ..
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2
June 13, lS91
THE HONORABLE CITY COUNCIL
Palo AltQ, California
Solid Waste Facilities Feasibilltv study -Consultant Agreeme~t
Members of the Council::
Report :in Brief
This report rec.ommands that Council approve an ag-reezrent .. ith
Wahler Associates in the amount of $71,500 for consulting services
for performing a. t'Wo-phase Solid Waste Facilities Feasibility Study
for the tormer Los Altos Treatment Plant (LATP) site~ Funds to~
both pbases have been wdgjete.d in the. RE.fuse Fund F'Y 1990-91
operating bUdget.
Piscussion
Work under this agreeme.nt ",-ill provide an assessment of sludge .and
'scil contalUination on the site of the. ~'l'P and evaluz.te the
teas11;1ility of developing the property tor four solid ..... ast.e related
.facilities. Tbe four facilities are a corporate yard. for Palo J.~lto
Sanitation company. a recycling center .. a pennanent household
hazardous waste facility and a mini-transfer station~
The SCOpe of Services has been divided into. tvo phases fer
illlplementation of this study .. Phase I consists of performing field
surveys" sam-pling' and laboratory analysis on sludge and potentially
contaminated soil at the Ll.TP.. This p1-~ase *;;..-i11 determ.ine Ule scope
of any hazardous contaminatio-n at the LATP that 'Would require
special permitting and handling .. in order to implement development
on the property~ If the results of Phase I indicate that develop
ment of the property is practical, Phase II of the study viII be
conducted. Phase II 'Jill entail the development of conceptual
designs for each facility, evaluation of economic and envir~nm.ental
impacts associated with the develcprnent of these facilities
(including land-banking four acres of ur~u5.ed marshland), and
preparation of preliminary cost Estb-.,ates and timetables for
design.. environmental i~pact reports, permitting and construction
of the facilities.
A request tor proposals 'Was issued to 11 consultant firms... enQ
three responded. The three firms ~ere intervie.ed by a selection
advisory committee, in accordance ~ith the City's selection
procedure for profe.ssional consultant$~ Tbe firiI'.s intervie .... ed \lfere
Camp, Dresser and McKee ... Inc.; Brcwn end CaldWell Consultantsi and
Wahler Associates~
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0!R:276:91
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The. selection advisory committee included staff frol! the Public
works OepartmentTs-Operations Division .end the Finance Dapart'll2ent' s
.Real Estate. Division~ The comm.ittee selected Wahler Jtssociates
based Qn the firm's experie.nce .. its ability to :r,eet the crit€:ria
~stablished in the proposal .. its technic!l approach .. and the fees
relative to the services to be proyided.
This project was included in the list of E'i 1959-90 c¢'nsultant .... ork
submitted to the finance and Public Works Co~~ittee in July lSS9,
and vas not selected to ~ retUrned to the committee for review.
ReCQm.mer.dations
staff recommends that Cou~cil:
1. ApprQve and authorIze. the Mayer to execute the e.ttached
consultant agreement with Wahler Associ~tes in tha amount of
$71,500 for consulting services for performing a t ...... o-phase
Solid Waste Facilities Feasibility Study for the. Los Altos
Treatment Plarot site.
2. Authorize the City Manager or his designee to negotiate and
execute amendments for services rela'\:~d to or incidental to
the scope of wor-k or serv.ices~ the value of all of .... hich
amendments sball not exceed $10 6 500.
Re5pectf~11y subcitted,
KI CRA£L H. KILLER
~,Y Director, ~b~C Works Op.r.ticns
~~~WjiJ~ ,
OAVID G. ADAMS
Oirector of Public Works
~G~~
Assistant city Manager
Attac~ents: Agreement
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CMR: 27E: 51