Contract - Costa Mesa, City of - 1954-10-11 •
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AGREE. rCENT.., T.
-THIS AGREEMENT; entered-intoy_this °/Y day of
October, 1954, -by and between the CITY OF COSTA MESA;, a' municipal
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corporatian of the ;'sixth class, situated in the. County of Orange,
hereinafter-sometimes designated as- the "CITY!I and the .
Costa Mesa Sanitary District, a district in:the County,of Orange
and- organized under'; the„Aanitary- District: Act°'of 1923, 'herein-.
after sometimes referr4&to. as ,the ",DISTRICT". ' :_
WHEREAS; The,City,,was incorporated on the 29th.. day of
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June, 1953, ;and ;.
• WHEREAS, onthedate of said•incorporation and on the
date of this. +Agreement the-- boundaries of the•?City encompass the •
entire territory: of the District except the territory described
in Exhibit "A" attached hereto,`. and - •
WHEREAS, the-District is the present-+owner of the complete
sewer system mostly:within the ':City,. and
. WHEREAS, the City, under the authority contained in
Section 38900 of the` Government :Code, may construct, establish
and maintain a .sewer system, and • .
. : WHEREAS, the District", was. formed prior to theincorporation
of the City, . and
• WHEREAS•, the parties hereto have determined that it is
desirable that the operation'yand maintenance ,'ef the- sewer system
of the District and the garbage• and trash disposal system of
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theDistrict ,:be transferred ,tothe, City in order that - the opera-
ation of municipal services within the-City may. be consolidated
• • under the direction- and: control- of the City, and
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WHEREAS, the Joint Exercise of Powers Act (Sections 6500-
6513:. of the Government.-Code)• permit two-or-mere' public agencies
by agreement to. exercise. jointly any, power common to the contract-
ing' parties:
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NOW, ";THEREFORE, :the ,parties hereto .agree `as follows: '
1. . `:Pursuant• to .the-:•authority contained in'the: Joint
Exercise of :Powers Act, the District hereby grants, transfers
• and conveys to the City, all' the rights, powers, and: duties of
the District., in then operation, management arid` control' of the •
sewer.' system and the °'garbage Bind trashst disposal system' and in,
connection: therewith assigns .and transfers, the Agreement '
between the District. and Kenneth C, Price dated September 3,
1953, effective .October: 1, 1953.
2. . The City shall commence ;-the operation of the said
sewer system and garbage and trash disposal.;system,pursuant
to;;all' rules, , regulations, resolutions and ordinances of the
District:'untilsuch-time as the City adopts..its own ^rules,
regul'ations,'• resolutions and ordinances covering the same, it
being, understood and. agreed• `that theCity shall have the right
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tor Adopt its. own' rules, regulations, :,resolutions and ordinances .
which it deems necessary for proper operation and' manage
ment of the said sewer system and .garbage and trash. disposal •
system.
- 3. The City shall maintain in proper condition the
said sewer • system and garbage and-trash disposal system and
levy such City taxes and r
perform such other;acts: as are necessary • .
for the efficient operation,:.maintenanceand}control 'of said
sewer system and sai'd 'garbage • and,trash disposal: system.
Li .-..- The City- shall be liable:!for the-:payment-,of. any
• and,. all debts, obligations and charges in connection with the
operation, Management, and control, of, said sewer system and
• said garbage,:and trash disposal ,system• incurred by the City, :
,excluding any liability, debtor charge by reason,of the."present
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bonded indebtedness 'of the District, except 'as hereafter 'set .
. forth In .this agreement and shall' hold the.District'free and
harmless ,therefrom.;.
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5.'- Notwithstanding the 'foregoing; the City shall
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on or' before4une lfof each year during the term, of this -
Agreement,` -beginning on• or. before June 1, . 1955, notify' the
District inwriting- the amount, for"` whichthe• City will maintain
and -operate the said' sewer system and garbage, and__trash disposal
system. for°the. District for ,the -next succeeding• fiscal year,,
to-wit: July 1 to`'June 30. The District, ;upon receipt of such
amount from the City as -aforesaid, shall notify the "City•on
- or_.before the -tenth- day of June' `of each year;' beginning on
or before June 101 ' 1955, of its intention so to pay the City
the amount requested by said. City. The District shall,. in
• the -event it` accepts` said''offer, signify acceptance; by 'adopting
the- budget- in 'accordance with, the amount requested by the
.City for the operation and maintenance':of the sewer'system and -
•garbage and trash disposal- system., In the event. the District .
does not •accept the: amount requested ,by the City on or before
June, 10 of each year, such -failure shall constitute a terminate.
tion of this`;Agreement as;. of July 1 -of "said ;year. and the ` • .
• District shall; thereupon :assume :full• responsibility for the
operation and maintenance, of the .said sewer system and garbage .
• and•trash disposal system.
In the event the District accepts the proposal:as
submitted by,the City 'as aforesaid, the District- shall pay to
the .City`the ^said sum'•requested by .the for the operation•
and-maintenance ofsaid sewer.::`system and tle' garbage and trash
. • disposal system for 'the next- succeeding fiscal 'year said
• payments to be made by the •Dietricf to: the City in ,equal monthly•
installments: _ . .
For the period July 1,. 195 ,: to July 1,. 1955, the
District shall pay-the' City for the operation and maintenance '-%
• of -said sewer r-systevr and garbage and trash disposal system
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the, following amounts
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- 1.: Garbage, and;Trash collection . . . ,' 436,000.00
2. Manager. and Labor. . . r . . . . . 1+,000 00
3. `Maintenance. : . . .: ,. .:.. . . : . .. .: 3;000.00 '
• less amounts actually paid" or •accrued on •garbage,. collection • 1.
and sewer .system, labor '.and maintenance:10y the District for •
• the. period July,1'• to`the date''of this .,,agreement•which' amount•
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g .c ortained in' this paragraph shall` prevent. the •
•City from-•expending: amounts .in excess .of the amounts reoeived . •
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' ' •from the•District ifor;-the maintenances and -operation of the
sewer system but: t' is ;expressly understood ',"and agreed-that
the City shall assume any• and"::all costs inexcess- of the amount
so, designated' and receivable' from the'-Distriet under the terms •
of this Agreement. ;
• 6. 'In compliance• with'the provisions' of the Joint:
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. Exercise of Powers Act, the following,agreements are entered
(a)`;•; The. purpose of this Agreement is 'to transfer. to
the 'City, and the City to assume and maintain; • the complete
' operation, management and control of.)-the., sewer system; and the
garbage and'',trash disposal system of the•'District,. excluding`
the. payment of the present or future bonded indebtedness. of •
• the• District and.,the"interest..,thereon.-
(b)8The method by which•the .purpose:.of this Agreement
is to: tie accomplished is as follows .
.a :
(1) . The''District .shall :transfer and• relinquish
• control of the oper'at'ion .and' management of, its-sewer system and
garbage and trash disposal system ta`the City. . .,
(2) TheCity accepts the duty, responsibility
• •and liability for the proper management and operation of the
sewer system and the garbage and trash disposal . system of• the
District. The City assumes all the,-obligations, duties and
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liabilities-of, the District'which'may arise by reason of any
contract or agreement entered'into by the District prior to ;
the execution of this Agreement, excluding any liability, debt
or charge by reason of the present bonded: indebtedness of the
District. •The City, shall hold the District free and harmless
from said obligations, duties and liabilities and from any
obligations;;duties ,and'liabilities that May''"arise by reason , •
of the operation and'management of said sewer, system and the
garbage and,=trash disposal system by the City„
' • (c)' ":;,The District hereby agrees that!.p'rior to the
transfer to 'the City of the operation •of the sewer 'system and
garbage and trash disposai 'system, it will cause to be made a
complete,audit :of.,said,'sewer system and garbage =and trash"
disposal system and furnish the City;with a copy of said audit.
• (d), 'There shall be 'a strict accountability of all
funds, and report of all receipts and disbursements' by all the
• parties hereto to,; each of the others and the City •shall keep
accurate ' records: on the operation- of the sewer system and garbage •
and trash disposal system and shall, in the event this- Agreement
is terminated, ,furnish the District with all ;records necessary ,
for the District to• eventually operate? the sewer system and •
• garbage and trash disposal system.
(e) The Agency to administer or execute the purposes
of this Agreement, is-'the City. .. ••
(f).: The .power of the: City' as the ragencY is subject
to. the restrictions upon the manner of exercising the power
of the District as said.restrictions are imposed upon the
District" by operation of law or by reason of. ,any'and all
contracts. and. agreements entered. into by the ,District prior
to the date : of 'the elocution' of this Agreement.;
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• (g} This _`Agreement shall continua until•it is - •
• rescinded or terminated It can•be 'rescinded •or terminated.. •
• only in the,manner and:at the, timesfispecified• in 'Paragraph 5
•above to wit Between the date of'tree eiptrof estimate of
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cost submitted by-the' City ;and_June 40 of,, each •year, : by the .
failure of the District`:tto,adopt in .ttheir Midget iind the.
failure td,'agr obit er.ipay pay to the-,pity: the amount requested by
the • City to-, operate said sewer 'system.'and garbage:and trash
disposal system tor jth? next -succeeding fiscal year. II'
(h} All property acquired by reason of -the, Joint -
Exercise ofPowers, shall •become the property of ;the 'City as
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tre A genc 'r,,to administer `thin reerrie nt.-- • . ,.,
(1): Upon:;the completion of ,the purpose' of. this• '
Agreement any,surplus money on hand'jshall be ∎returned to :the?
parties hereto 'in;proportion',to the contributions made by each„ ,
7 e City has the right to make "additional connections
• with 'the-present system•-ofi the,;Di strict, at1 such times and .
under •such ;'circuinstances:and; in such a degree as the City may
determine at its `owndiscretien from`time':to time.
- • 8. 4 The •right.'of connection and use•,"of' the system is
granted tot the City ;as. the City now,,exists ,o'r as it may exist,
and ,its bo?aridaries.may be enlarged or expanded from time to
time.'-.'in the.;future, but subject to such -limitations :and .conditions •
as;may exist; under;. existing" agreements tbetVP en the Districtiand
• other persons'.
9 'nIn order, to provide, for' contritutions from sources
out side _the.,.pre sent, boundarie's" 'of the :District- in the 'event...,
that the City, permits :connections to be made, to the 'sewer system
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from points-outside the,'present' boundaries 'of the.District, '
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in .order to: pay for';; 'satisfy:and discharge `.the present bonded
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• indebtedness and the interest thereon, of :the'District, the •
City shall pay an-amount of money sufficient to •pay';any and••
all outstanding bonded indebtedness ,of the -District and the
interest thereon, in.the proportion "that the areas served by
the' connections made by the City and not now ,within the present
boundaries of the -District bear to the present .area of the •
District. .
10,:. The funds •to-be, paid by. the City under 'Paragraph 9
above shall- not be raised by. any form of. general •taxation or
by special, license. tax or charge which would result in the
• taxpayers -within, the District boundaries paying a portion of •
-the,.,Citycs contribution.
• 11: For the purpose of computing the compensation
• payments . of ;this Agreement, the present area of the District•
is acres. .
12. Each, of the parties agrees, when and as requested
• by the other party, to execute and deliver to such other party, . ' .
any and all documents, deeds, releases or •conveyances. necessary
or convenient to show title or power or authority invested in
accordance with this Agreement. •
13. It is understood and agreed by each of the parties
hereto that if any of these provisions shall-.contravene, or
be invalid,. 'such. contravention or invalidity shall not invalidate
the whole 'agreement, . but it shall be construed as if not
containing the particular provision or provisions held invalid,•
and the rights and' obligations of the -parties shall be construed
and 'enforced accordingly; and each of the parties hereto
Specifically declare that in the event the portion of the
agreement dealing with the right of the City to make -connections
to the sewer system beyond the Cityllimits, and beyond the
boundaries of the-District, is held to be invalid, then in
such event, it:is the intention of each of the ,.parties, hereto
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to •continue the remaining portions of the Agreement in full • •
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,..force and` of 'ect;
IN WITNESS WHEREOF, -this Agreement has been duly
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executed by the Mayor and City Clerk• of the :City of Costa Mesa,
and the President and Secretary of the Costa Mesa Sanitary
District, each having been heretofore duly authorized to .
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execute this .Agreement• on behalf of the respective parties hereto.•
• ' .. Executed this / 1 `x' day of October, 1951+.' by the CITY.
. CITY OF COSTA MESA, - ..
a municipal corporation of the
sixth class, situated in the
:-.-,,,;••• i-, County o .Orange.
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'r ,'ATTEST: '
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=•- z �`t y
ti °mob .
. . -:,City:Clerk - - •
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- Executed this //' day of October, 1954, by the DISTRICT,
• COSTA MESA. SANITARY DISTRICT,
• a district situated in the County
. of Orange'and organized under the
' Sanitary District Act of 1923.
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( B
r, 4 , ' By
z,;' , President
ATTEST:
�� , V
. Secretary
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