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HomeMy WebLinkAbout021726-08.9 ADMINISTRATIVE STAFF REPORT 8.9 TO: Mayor and Town Council February 17, 2026 SUBJECT: Resolution No. 14-2026, authorizing the Town Manager to Execute a Contract for $50,005 to Purchase a New Water Meter and Authorizing a Transfer Agreement for an Existing Water Meter Located at 1581 Diablo Road BACKGROUND The Diablo Road Multimodal Trail Project installed a new cattle fence that restricted access to the existing water meter located at 1581 Diablo Road. The existing water meter is owned by Teardrop Land and Cattle LLC. To resolve this, Town Staff negotiated an agreement with Teardrop Land and Cattle LLC., to purchase the existing meter. DISCUSSION The attached Water Meter Purchase and Transfer Agreement provides for the Town to acquire ownership of the existing meter upon payment of the purchase price within 90 days of February 17, 2026. Teardrop Land and Cattle LLC., will cooperate with transfer requirements, including any EBMUD documentation. Teardrop Land and Cattle LLC., is responsible for arranging and funding the new service installation with EBMUD. The purchase price reflects estimated costs; any excess costs are Teardrop Land and Cattle LLC’s responsibility. The Town provides no warranties on availability, timing, or final costs. Teardrop Land and Cattle LLC., warrants sole ownership, good condition (normal wear), no liens, and authority to transfer. The $50,005 cost is based on EBMUD schedules, installation charge and system capacity charge. PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. FISCAL IMPACT $50,005 is available in CIP No. C-055 Diablo Road Multimodal Trail Project. Water Meter Purchase 2 February 17, 2026 Diablo Road Trail Project C-055 RECOMMENDATION Adopt Resolution No. 14-2026, authorizing the Town Manager to execute a contract for $50,005 to purchase a new water meter and authorizing a Transfer Agreement for an existing water meter located at 1581 Diablo Road. Prepared by: Allan Shields Development Services Coordinator Reviewed by: Diane J. Friedmann Development Services Director Attachments: A-Resolution No. 14-2026 Exhibit 1 - Purchase Agreement RESOLUTION NO. 14-2026 AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRACT FOR $50,005 TO PURCHASE A NEW WATER METER AND AUTHORIZING A TRANSFER AGREEMENT FOR AN EXISTING WATER METER LOCATED AT 1581 DIABLO ROAD WHEREAS, the Diablo Road Multimodal Trail Project installed a new cattle fence that restricted access to the existing water meter located at 1581 Diablo Road that is owned by Teardrop Land and Cattle LLC; and WHEREAS, Town Staff negotiated an agreement with Teardrop Land and Cattle LLC to purchase a new water meter and acquire ownership of the existing meter upon payment of the purchase price within 90 days of the effective date February 17, 2026; and WHEREAS, the Town agrees to purchase the existing meter for $50,005 based on EBMUD schedules, installation charge and system capacity charge; and WHEREAS, Teardrop Land and Cattle LLC., is responsible for arranging and funding the new service installation with EBMUD, any excess costs are Teardrop Land and Cattle LLC’s responsibility; now, therefore, be it RESOLVED, by the Danville Town Council that the Town Manager is authorized to execute the Water Meter Purchase and Transfer Agreement with Teardrop Land and Cattle LLC., substantially in the form attached as Exhibit 1, including payment of $50,005 within 90 days of February 17, 2026. APPROVED by the Danville Town Council at a regular meeting on February 17, 2026, by the following vote: AYES: NOES: ABSTAINED: ABSENT: __________________________ MAYOR APPROVED AS TO FORM: ATTEST: _________________________ __________________________ CITY ATTORNEY CITY CLERK Docusign Envelope ID: BC24FC78-5061-4FA1-98EA-A52F5EF1D956 WATER METER PURCHASE AND TRANSFER AGREEMENT This Water Meter Purchase and Transfer Agreement (the "Agreement") is entered into as of January 30, 2026 (the "Effective Date"), by and between the Town of Danville, a municipal corporation organized and existing under the laws of the State of California, with its principal place of business at 500 La Gonda Way, Danville, CA 94526 (the "Town"), and Teardrop Land and Cattle, LLC, a California Limited Liability Company with a mailing address of PO Box 3362 Danville, CA 94526 (“Teardrop”). The Town and Teardrop may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS WHEREAS, Teardrop leases property in the vicinity of the Diablo Road Multimodal Trail Project in Danville, California, and utilizes an existing water meter (the "Existing Meter") located at the Trailhead (Diablo Road at Fairway Drive) to provide water for hydrating cattle on his grazing areas; WHEREAS, the installation of a new cattle fence as part of the Diablo Road Multimodal Trail Project has restricted Teardrop’s access to the Existing Meter from his grazing areas, an issue discovered after the conditions of approval for the project were drafted and which was not addressed in those conditions; WHEREAS, to resolve this access issue, the Parties have agreed that the Town will purchase and take ownership of the Existing Meter from Teardrop, and in consideration therefor, the Town will compensate Teardrop in an amount sufficient to cover the full cost of installing a comparable new water service (the "New Service") at a location chosen by Teardrop; WHEREAS, the recommended location for the New Service is near the fire hydrant at the base of 1400 Diablo Road, Danville (intersection with Clydesdale Drive), where it can tie into the existing main; WHEREAS, the costs for the New Service are based on the East Bay Municipal Utility District (EBMUD) Schedules D and J, effective July 1, 2025, as follows: - Installation Charge (Schedule D): $11,878 for a 1" and smaller lateral with 1" and under meter, under paved conditions; and EXHIBIT 1 Docusign Envelope ID: BC24FC78-5061-4FA1-98EA-A52F5EF1D956 Water Meter Purchase Agreement Teardrop Land and Cattle, LLC 2 - System Capacity Charge (Schedule J): $38,127 for a 5/8" meter, non-residential, Region 3; resulting in a total compensation amount of $50,005 (the "Purchase Price"); WHEREAS, Teardrop has recommended, and the Town agrees, to this transfer arrangement to facilitate the resolution of the access issue; NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT 1. Purchase and Transfer of Existing Meter Teardrop hereby agrees to sell, transfer, convey, and assign to the Town all right, title, and interest in and to the Existing Meter, free and clear of any liens, encumbrances, or claims. Upon payment of the Purchase Price by the Town as set forth in Section 2 below, ownership of the Existing Meter shall immediately transfer to the Town. Teardrop shall cooperate with the Town and EBMUD as necessary to effectuate the transfer, including executing any required documents or forms. 2. Payment of Purchase Price In full consideration for the transfer of the Existing Meter, the Town shall pay to Teardrop the Purchase Price of $50,005 within thirty (30) days of the Effective Date. Payment shall be made by check to Teardrop. The Purchase Price is intended to reimburse Teardrop for the costs associated with installing the New Service at his chosen location, in accordance with EBMUD Schedules D and J. 3. Installation of New Service Teardrop shall be responsible for arranging and paying for the installation of the New Service with EBMUD or any other appropriate utility provider. The Town makes no representations or warranties regarding the availability, timing, or final costs of the New Service, and Teardrop acknowledges that the Purchase Price is based on estimated costs as of the Effective Date. Any additional costs incurred by Teardrop for the New Service beyond the Purchase Price shall be borne solely by Teardrop. Docusign Envelope ID: BC24FC78-5061-4FA1-98EA-A52F5EF1D956 Water Meter Purchase Agreement Teardrop Land and Cattle, LLC 3 4. Representations and Warranties a. Teardrop represents and warrants that: (i) it is the sole owner of the Existing Meter; (ii) the Existing Meter is in good working condition, subject to normal wear and tear; (iii) there are no outstanding liens, claims, or encumbrances on the Existing Meter; and (iv) it has full authority to enter into this Agreement and transfer the Existing Meter. b. The Town represents and warrants that it has full authority to enter into this Agreement and to perform its obligations hereunder. 5. Indemnification Teardrop agrees to indemnify, defend, and hold harmless the Town, its officers, employees, and agents from and against any claims, losses, damages, or liabilities arising from or related to Teardrop’s ownership or use of the Existing Meter prior to the transfer, or from any breach of Teardrop’s representations and warranties herein. The Town agrees to indemnify, defend, and hold harmless Teardrop from and against any claims, losses, damages, or liabilities arising from or related to the Town's ownership or use of the Existing Meter after the transfer. 6. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of laws principles. Any disputes arising under this Agreement shall be resolved in the courts of Contra Costa County, California. 7. Entire Agreement This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior agreements, whether written or oral. No amendment or modification shall be effective unless in writing and signed by both Parties. 8. Severability If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. 9. Counterparts This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Electronic signatures shall be deemed valid and binding. Docusign Envelope ID: BC24FC78-5061-4FA1-98EA-A52F5EF1D956 Water Meter Purchase Agreement Teardrop Land and Cattle, LLC 4 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. TOWN OF DANVILLE By: _______________________________ Name: Tai J. Williams Title: Town Manager Date: _____________________________ Teardrop Land and Cattle, LLC By: _______________________________ Name: Tom Magee Title: Sole Member Date: _____________________________ Docusign Envelope ID: BC24FC78-5061-4FA1-98EA-A52F5EF1D956