Contract - Costa Mesa, City of - 1954-10-07 AGREEMENT
THIS`AGREEMENT,, entered 'ints ' this 7th day of
October, 1954, by. and, between the CITY.,OF COSTA MESA, a, municipal ,
. i, corporation bf the .sixth.class, situated in the County of Orange,
. hereinafter sometimes designated as the "CITY", and the
Costa .Mesa Sanitary District, a district in `the . .
ounty. of Orange
•' and organized under :the Sanitary District Act= of 1923, herein.
after 'sometimes referred 'to as the "DISTRICT"; .
WHEREAS, The:City was incorporated on,the 29th; day of ..
June, , 1953, and .
WHEREAS, ES the date of said incorporation and en the. . .
• date of this` Agreement the boundaries`, .f the= City encompass the
entire territory of the District except .the territery`described
in Exhibit "A" attached .hereto, and ,
WHEREAS, the District.•is the' grresent , .wner, of. the complete
- sewer system mostly;within the City, .and .
WHEREAS, the: City, under the..authsrity contained in
Sectien 38900 of the Government Code; may construct, establish
and maintain :a sewer. system, .and1 -
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WHEREAS,. the.Distriet was termed prior to the incorporation -
' cf the City, and . •
WHEREAS, the :parties hereto have determined that• it `is
desirable that the 'operatien and- maintenance"if_ the• sewer system. '
of the District end -the garbage ad trash• disposal_ system of
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the- District be transferred 'to the City in -order that the opera
ation of municipal services:within the; City. may .be ,consolidated
under the direction :and control if the City, :and
•iav AS, the 'Joint Exercise orPowers Act (Sections: 6500- '
6513 of the Government CodeX permit: •two .or more'publicragencies
• 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
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and conveys. .-to the City, all the "rights, .powers and -duties' of
• the- District, in the,.'operation, management and contrsl of the
sewer . system- and the garbage ,,and" trash disposal. system and in.,
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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
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sewer .system and -garbage and trash-disposal system pursuant
to all "rules, regulations,• resolutions and. ordinances of •..the
District until such•time as-the City adopts its own rules,
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regulations, resolutions and ordinances 'covering thesame, it ' `
being understood and agreed that .the. City•shall have .the right
to adopt its own rules, regulations, resolutio-ns and ordinances
which it deems necessary for the proper operation and manage-
ment of the said sewer system and garbage and` trash: disposal .
u 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 .per'form such other acts as are necessary
. for the efficient speration, maintenance and c.ntro]. of said
sewer system and said garbage 'and trash disposal system.
4. •The City: shallbe liable for the,:payment if any '
and all debts, obligations and charges in connection with the :
operation," management and control of said sewer system and • "
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said garbage and trash disposal system incurred by the City,
excluding any liability, debt or charge by reason of. the present
bonded indebtedness of the District, except is .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
on or. before June 1' of each year during the -.term of this '
Agreement, beginning on or before June 1, 1955, notify the
District in writing the amount for which the 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 10,.-1955, .rots 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.aamount requested by the City on or before
June 10 of each year, such failure shall constitute ia termina-
tion of this Agreement as of July 1 of said sear :and ,the
District shall thereupon 'assume full ,responsibility fir 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. City for the operation
and maintenance of said sewer- system'•and the garbage and trash
disposal system for the next succeeding fiscal year, said
payments to 'be made by the District to,the City in equal monthly
installments.
For the period July 1, 3:954arto July :1 the
District shall pay the City for the operation and ,maintenance
of said sewer system and garbage and trash :disposal system
the following amounts: f
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1. - Garbage• and Trash collection ...,, 36;000.00 .
2. Manager and Labor.,. .. .. . . .... . ..', 1 ,000.00.`
3. .. Maint en,ance.. .
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• less amounts actually paid or accrued. in garbage collection •
and' sewer .system, labor and maintenance by, the, District for ,
the :perlid duly 1 .:to the:.date. of this -agreement which•amount
is r
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Nothing contained in this paragraph shall prevent the
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City-'from expending amounts ;in, excess .if the,,4amounts received
from the District'•for••the maintenance and operation of='the .
.sewer -system •but it::is expressly understood -and agreed that
the City shall assume any and all costs in excess of the. amount
so designated-and 'receivable.'from the' District under the terms
of 'this Agreement..'
6. "In compliance with the provisionsof the Joint
Exercise of Powers' the ?following reements are e
, g.'a g ntered _
into.
(a) The purpose if this Agreement is to transfer to
the City,• and` the City to assume and maintain; the complete
operation, management and 'control o£, the • sewer system, :and the :
garbage and trash disposal system of ,the District, excluding
the':payment the present or future Bonded•"indebtedness of
the District;;and the interest thereon.
(b) . The method by .which'.the,pvrpose ,of this Agreement - ,-
is to be accomplished is' as 'follows:'
(1) . The. District-:shall transfer and`relinquish
• control of the operation and' manageme,nt •f its sewer system
garbage and,trash •dispssel system to the City.
• (2) . The City accepts the duty, ".responsibility
• and liability for the proper management and operatiin}of the ' •
;sewer. system' :and the, garbage^and` trash, disposal system `of• the
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District. • The City assumes all the obligations, .duties and
liabilities` of the District which may: arise by reason of 'any
contract or agreement entered into .;by 'the- District-prior
the execution of ,this"Agreement, excluding any liability, debt`
or .charge, b reason of the .
y , present `bonded-,indebtedness of the. '
• District. The City shall held 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 .Prior to the
transfer to:'the. City of the operation of the sewer`;system
garbage and...trash a
trash :disposal system, •it will ' cause to be made aY' .
,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
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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 Diätrict to eventually operate the sewer. system and' • .
• garbage and trash disposal system. •
(e)' The Agency to administer or execute the purposes''.,
• of this Agreement i`s the City. '' ,
(f): • The. power .of the City as ,the agency is subject
to the restrictions_upon the manner of exercising the power
of the District as said ,restrictions are imp`osed'upon the
District..by operation of law: or by .reason of and, all
contracts and agreements' entered into by the.:District •.prior
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to' 'the 'date of the' 'executiOn of this Agreement. : • .
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(g) This Agreement-.shall continue, until it is
rescinded an terminated. It can be ;rescinded or terminated < .
only in the manner and 'at the "times : specified in Paragraph 5 ... -
above, to-wit: Between: the date ofreceipt: 'of estimate of
cost submitted. by the City and June:.10 of each.year, ,by the
failure of. the District to .adopt in `their budget. and the
failure to agree:,to -pay to the City the amount requested by
the City .to operate said sewer system and garbageand_ trash;..`.
disposal system for the next .succeeding fiscal year. ,
(h)'`., All property acquired by reasonfof the Joint
,: Exercise ofPowers shall become the property, of ..the, City as
the Agency to, administer this:,Agreement
(i)` Upon;the completion of the purpose of- thi's
Agreements any surplus money on hand .shall '.be returned to the; .
parties hereto in,proportionto the contributions.made. by_each .
party. U'.
7. . , The City has the right to, make additional. Connections
with• the present' system of 'the- District, at 'auch times and
under such circumstances and in such a degree as the City may
determine at its own- discretion from-time to time.
. '8,, ',The right:of connection and use: of the system is,',
granted to<;the City ,as the City now, exists or as 'it may exist,
and its boundaries-:may be enlarged or •expanded-:'from time to , '
time in the•;future, but subject to such limitations 'and conditions •
as may exist, under existing, agreement's between the District and
other persons. fr
9. In order to -provide for contributions from sources
outside the: present-.boundaries of ',the District in 'the event
that the City permits connection; to be made to the,.sewer system
from points outside the present boundaries °of the -District,
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 City's contribution. .
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• 11. For the purpose of computing the' compensation
payments of. this Agreement, the present area of. the District ..
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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, invalid'ate
the whole agreement, but 'it shallbe 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 iii the event the portion of the
agreement dealing with the right of= the City to make connections
to the sewer system beyond the City. limits, : 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 '
force ,and effect, • ,
IN WITNESS WHEREOF, this -Agreement has been duly
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.
s "-�, , . ' ; Executed this. 'Eth day of October, 1954, by the CITY.
e'r - ,, .CITY OF COSTA MESA, - -
f ` ,2 ; a municipal corporation of the
n� sixth class, situated in the
County of Orange
• ATTESTt " D ayor '
City-Clerk
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. Executed this • 7t} day of October, 1954, by the DISTRICT.
' COSTA MESA SANITARY DISTRICT,
a district situated in the County
of Orange and •rganized under the. .
. Sanitary District Act of 1923.
By • :,/, /
. - President '
ATTEST:
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Secretary • •
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