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Contract - Costa Mesa, City of - 1986-07-07 • SECOND MODIFICATION AGREEMENT This SECOND MODIFICATION AGREEMENT is entered into by and between CITY OF COSTA MESA, a municipal corporation, hereinafter referred to as "CITY" , and the COSTA MESA SANITARY DISTRICT, a district in the County of Orange organized under the Sanitary District Act of 1923 , hereinafter referred to as "DISTRICT" on the last date affixed hereto. RECITALS: WHEREAS, the CITY and DISTRICT did enter into that certain Agreement dated December 19, 1955, pursuant to their joint powers, which Agreement is still in full force and effect; and WHEREAS, the CITY and DISTRICT did enter into a First Modi- fication Agreement approved by the City Council of the CITY of Costa Mesa on July 3 , 1978 and executed by the parties thereto on July 12, 1978; and WHEREAS, CITY and DISTRICT intend and desire to continue the terms and conditions of said Agreement and First Modification in all respects with the added provisions as provided for in this SECOND MODIFICATION AGREEMENT; and WHEREAS, the DISTRICT desires to administer, invest, and disburse its funds as collected by the Treasurer for the County of Orange and as authorized by Seciton 6801 of the Health and Safety Code, said funds of the DISTRICT having heretofore been ---,collected, administered, paid out, and invested by the Treasurer recycled paper for the County of Orange, pursuant to Division 6 , Part 1, Chapter 7, Article 6 of the Health and Safety Code, being Section 6780, through the use of the County Assessor ' s roll; and WHEREAS, DISTRICT desires to include the administration, in- vestment and disbursement of said funds within the powers granted by the DISTRICT to the CITY in this Joint Powers Agreement; and WHEREAS, the CITY and DISTRICT desire to set forth their re- spective rights and obligations in connection therewith; WHEREAS, the CITY and DISTRICT want to clarify the CITY' S authority to enforce ordinances of the DISTRICT; NOW, THEREFORE, for and in consideration of the covenants contained herein, performed and to be performed, the parties hereto agree as follows: I . DISTRICT on August 12 , 1985 adopted Resolution No. 85-438 pursuant to Division 6 , Part 1 , Chapter 7, Article 6 of the Health and Safety Code, a true copy of which is attached to this Agreement marked Exhibit "A" and by this specific reference made a part hereof. II . The Finance Department of CITY and the Director of Finance of CITY who, under this Joint Powers Agreement, acts as Director of Finance of the DISTRICT shall have the power, subject to limi- tations hereinafter set forth, to administer, invest and disburse funds of the DISTRICT collected by the County of Orange and paid over to the DISTRICT as heretofore set forth. III. The powers and obligations of the Finance Department and the Director of Finance acting for District pursuant to this Agree- ment shall be limited to those powers and obligations established by DISTRICT' s Resolution 85-438, the provisions of this Joint Powers Agreement and its modifications, and the laws governing joint powers agreements as they exist or may in future be enacted or amended. IV. DISTRICT' s funds in the hands of the CITY Finance Department and the Director of Finance shall be administered pursuant to Sections 53630 through and including 53683 , Government Code. V. The funds of DISTRICT administered by CITY shall be kept separate from CITY funds without commingling except in the case of investment of cash balances by pooling with CITY funds in order to obtain a greater return for each party and then only provided separate and detailed accounting records and supporting documents are maintained showing the contribution of CITY and DISTRICT to the pool and their respective earnings, and further providing said funds are invested as provided for in Paragraph IV hereof. VI . The services performed and expenses incurred pursuant to this Amendment by CITY through its Finance Department and the Fi- nance Director shall be without cost to the CITY and shall be re- imbursed from time to time by DISTRICT when charged therefor. VII . The Finance Department of CITY and the Director of Finance shall, to the extent reasonably possible, keep separate the ad- ministration and disbursement of CITY and DISTRICT funds and the respective accounting records and supporting documents. VIII . All books and records pertaining to the administration of DISTRICT funds pursuant to this Agreement shall be open to inde- pendent accounting firms employed by either party, provided a reasonable request to examine the books and records is made for a time during regular business hours. Such financial records shall be kept in accordance with generally accepted accounting princi- ples for governmental entities. Each party hereto shall disclose such financial information to the other as may be necessary to obtain surety bond coverage concerning CITY administering DIS- TRICT funds. IX. Gains and losses on pooled investments shall be in propor- tion to the contributions to the pool, and neither party shall be liable to the other for any such losses. X. DISTRICT reserves the right to establish rules and regula- tions to govern the administration, investment and disbursement of its funds by the Finance Department of the CITY and the Direc- tor of Finance, which said rules and regulations will not be, to the extent possible, contrary to CITY established rules and regu- lations. CITY and DISTRICT agree to make reasonable efforts to adopt the same procedures for the handling of such funds. XI . CITY is authorized pursuant to section 2 of the said Agree- ment of December 19, 1955 , to enforce DISTRICT ordinance, rules and regulations regarding customer responsibilities for sewer and trash services. XII. Except as provided for herein, the Agreement dated December 19, 1955 and the First Modification dated July 12, 1978 shall re- main in full force and effect and binding upon the parties here- to. APPROVED by the City of Costa Mesa this 7.t1 day of Cd40.at , 1986 by duly adopted Council action. CITY OF COSTA MESA .�- / BY: 40..clica-- _ ....a _ _ Mayo //. .. ATTEST: _�i ! _�. ity Clerk / APPROVED by the Costa Mesa Sanitary District this /2 tL day of , 1986 by duly adopted Board action. COSTA MESA SANITARY DISTRICT I N\ By-:---A. . . I1.4 I! U. I k3-L_ P 'esi.e t ATTEST: e Secretary APPROVED AS TO FORM: gar City Attorney APPROVED AS TO FORM: AL d Atto -n-y fort - DISTRICT