Loading...
Contract - Costa Mesa, City of - 1955-12-19 (2) . . COSTA MESA SANITARY DISTRICT - CITY OF COSTA MESA AGREEMENT THIS AGREEMENT, entered into this 19th day of December, 1955, by and between the CITY OF COSTA MESA, a municipal corporation of the sixth class , situated in the County of Orange , State of California , herein- after designated as the "CITY" , and the COSTA MESA SANI- TARY DISTRICT , a district in the County of Orange and organized under the Sanitary District Act of 1923, herein- after referred to as the "DISTRICT" . W I T N E S S E T H WHEREAS , the CITY and the DISTRICT did on the 3rd ' day of November, 1954 , enter into a written agreement pur- suant to the authority contained in the Joint Exercise of Powers Act (Sections 6500-6513" of the Government Code ) , wherein the CITY , in consideration of the payments therein set forth to be made by the DISTRICT to the CITY , agreed to operate , manage and control the sewer system and garbage and trash disposal operations of the DISTRICT ; and WHEREAS , said agreement was in force and effect until the 1 st day of July , 1955 , and was extended by mutual agree- ment of the said CITY and DISTRICT on 'said date for one additional year , to-wit , until July 1 , 1956 ; and WHEREAS , it is the desire of said CITY and said DISTRICT to amend said agreement and to enter into a new • • Ext tgfr F 1 �1 PA IFS agreement wherein the CITY will operate and maintain the sewer system and garbage and trash operations of 'the DISTRICT in order that the operation of municipal services within the CITY may be consolidated under the direction and control of the CITY ; and WHEREAS , the CITY was incorporated on the 29th day of June , 1953 ; and WHEREAS , on the date of said incorporation and on the date of the original agreement between the CITY and DISTRICT above referred to , the boundaries of the CITY encompassed the greater part of the territory of the DIS- TRICT; and WHEREAS , the DISTRICT is the owner of a complete sewer system within the CITY ; and WHEREAS , the CITY under the authority contained in Section 38900 of the Government Code , may construct , estab- lish and maintain a sewer system and collect garbage and trash ; and WHEREAS , the DISTRICT was formed prior to the incor- poration of the CITY ; and WHEREAS , the parties hereto have determined that it is desirable that the operation and maintenance of the sewer system of the DISTRICT and the garbage and trash collection operations of the DISTRICT be transferred to the CITY ; and (2 ) WHEREAS , the Joint Exercise of Powers Act , above referred to , permits two or more public agencies by agree- ment to exercise jointly any power common to the contrac- ting parties . NOW , THEREFORE , the parties hereto agree as follows : 1 . That the agreement heretofore entered into between the parties and now in effect , shall be amended and replaced by this agreement which shall go into effect immediately upon its execution by the parties hereto . 2 . Pursuant to the authority contained in the Joint Exercise of Powers Act , the DISTRICT hereby grants , trans- fers and conveys to the CITY , all the rights , powers and duties of the DISTRICT , in the operation , management and control of the sewer system and the garbage and trash opera- tions , except as hereinafter specifically excepted . a ) The District shall be liable for and pay any and all outstanding bonded indebtedness of the District and the interest thereon . b ) The District shall retain the exclusive right and power to annex additional territory to the District , sub- ject , only , to the provisions of the Health and Safety Code with respect to the submission thereof to the Board of Supervisors of the County of Orange . c ) The District shall have the exclusive right and power to enter into contracts with third persons for the collection of garbage and trash , except that the District ( 3 ) shall assign such contracts to the City and the City shall be bound thereby. 3. The CITY shall maintain in proper condition the said sewer system and equipment and shall be respon- sible for the satisfactory garbage and trash collection service , in accordance with such contract or contracts as may be entered into by the District in accordance with the provisions of Paragraph 2 (c) above and shall perform such other acts as are necessary for the effi - cient operation , maintenance and control of said sewer system, equipment and garbage and trash operations . 4. 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 by the CITY , and the garbage and trash operations , except as specifically set- forth " in this agreement , and shall hold the DISTRICT free and harmless therefrom. 5 . In consideration of the CITY operating and main- taining the said sewer system and garbage and trash opera- tions of the DISTRICT , the DISTRICT shall pay to the CITY in the manner and at the times hereinafter set forth the following amounts : a) The amount budgeted by the District in its budget for each fiscal year for the operation and main- (4 ) tenance of the sewer system, equipment and garbage and trash operations . The above sum to be paid in equal monthly installments on or before the 10th day of each month . The first payment under this agreement shall be for the month of January , 1956 . Each monthly payment shall be 1 /12 of the said total budget referred to above . b ) It is understood that the amounts budgeted by the DISTRICT for salaries to the Engineer , Attorney and Secretary shall be included in the portion of the budget for operation and maintenance , and such sums shall be part of the amount paid to the CITY to reimburse the CITY for employees used by the CITY in carrying out its obligations under this agreement . 6 . The amounts payable to the CITY for the remain- ing portion of the present fiscal year 1955-56 under the provisions of Paragraph 5 above shall be based on the bud- get heretofore adopted by the DISTRICT for the fiscal year 1955-56 . a ) At the end of each fiscal year, the DISTRICT shall present to the CITY its proposed budget for the suc- ceeding fiscal year ; and upon receipt thereof , the CITY shall , within ten days thereof , notify the DISTRICT in writ- ing as to whether it is willing to extend the agreement for such fiscal year. In the event the CITY notifies the DISTRICT ( 5 ) that it will not continue the agreement for such fiscal year, the agreement shall terminate thirty days after such notice is received by the DISTRICT, and the DISTRICT shall thereupon assume full respon- sibility for the operation , maintenance and control of the sewer system and garbage and trash disposal operations . 7. In compliance with the provisions of the Joint Exercise of Powers Act , the following agreements are entered into : a) The purpose of this agreement is to trans - fer to the CITY , and the CITY to assume and maintain , the complete operation , management and control of the sewer system , equipment , property , and the garbage and trash operations of the DISTRICT, except as hereinabove speci - fically excepted by this agreement . b ) The method by which the purpose of this agreement is to be accomplished is as follows : 1 ) The DISTRICT shall transfer and relin- quish control of its sewer system , equipment , property and garbage and trash operations to the CITY , except as herein- above specifically excluded . 2 ) The CITY accepts the duty , responsibility and liability for the proper management , operation and con- trol of the sewer system, property , equipment , and garbage (6 ) and trash operations of the DISTRICT. It shall use the funds received from the DISTRICT for the operation , manage- ment and control of the sewer system , property and equip- ment , and garbage and trash operations . The CITY assumes all the obligations , duties and liabilities of the DISTRICT which may exist by operation of law or which may arise by reason of any contract or agreement entered into by the DISTRICT prior to the execution of this agreement , pursuant to Paragraph 2 ( c) above , excluding any liability , debt or charge by reason of the present bonded indebtedness of the DISTRICT. The CITY shall hold the DISTRICT free and harm- less from said obligations , duties and liabilities and from any obligations , duties and liabilities that may arise by reason of the operation , management and control of said sewer system , property , equipment , and garbage and trash operations by the CITY . c ) The CITY may expend such public funds as it receives by virtue of the transfer of funds established by this agreement to defray the cost of the operation , manage- ment and control of the said sewer system, property , equip- ment , and garbage and trash operations . 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 . e ) The agency to administer or execute the pur- poses of this agreement is the CITY . f) The CITY , as the agency to administer or execute this agreement , is an entity separate from the parties ( 7 ) to this agreement. g ) 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 im- posed upon the DISTRICT by reason of operation of law or by reason of any and all contracts and agreements entered into by the DISTRICT prior to the date of the execution of this agreement . h ) This agreement shall continue until it is rescinded or terminated. Either party hereto may terminate this agreement by serving a written notice of its intention to so terminate at least thirty (30) days before the end of the current fiscal year . In the event of the service of such written notice , this contract shall terminate at the end of the current fiscal year. i ) All property acquired by reason of the Joint Exercise of Powers shall become the property of the CITY as the agency to administer this agreement . 8. The CITY has the right to make or allow to be made additional connections within the present Sanitary District System and within the Sanitary District System as the same may hereafter be enlarged by the DISTRICT. 9 . 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 (8) in the future , but subject to such limitations and conditions as may exist under existing agreements between the DISTRICT and other persons . 10 . Each of the parties agrees , when and as re- quested by the other party , to execute and deliver to such party , any and all documents , deeds , releases or conveyances , necessary or convenient to show title or power or authority vested in accordance with this agree- ment. 11 . It is understood and agreed by each of the parties hereto that if any of these provisions shall con- travene , 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 that those portions of the agreement granting to the CITY the management , operation and control of the sewer system and garbage and trash operations outside the CITY is held to be invalid . It is the intention of each of the parties hereto to continue the remaining portions of this 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 (9 ) Mesa , and the President and Secretary of the Costa Mesa Sanitary District , each having been heretofore - duly authorized to execute this agreement on behalf of the respective parties hereto . Executed this 19th day of December, 1955 , by the CITY. CITY OF COSTA MESA , a municipal corporation of the sixth class , situated in the County of Orange By C. M. Nelson Mayor ATTEST : A . C. Swartz City Clerk Executed this 19th day of December , 1955 , by the DISTRICT. COSTA MESA SANITARY DISTRICT A district situated in the County of Orange and organized under the Sanitary District Act of 1923. By A. H . Meyers President ATTEST: A. H . Hollister Secretary ( 10 ) F I R S T M O D I F I C A T I O N• A G R E E M E N T This FIRST MODIFICATION AGREEMENT 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. R E C I T A L S : 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 parties intend and desire to continue the terms and conditions of said prior Agreement in all respects except as modified herein . NOW, THEREFORE , the parties hereto agree as follows : 1. That section 5 , subsection 'H be AMENDED to read as follows : "b) It is understood that the amounts budgeted by the DISTRICT for any salaries to the Manager and Secretary or other employee shall be included in the portion of the budget for operation and maintenance , and such sums shall be part of the amount paid to the CITY to reimburse the CITY for employees used by the CITY in carrying out its obligations _under this agreement. It is further understood that 'the DISTRICT shall employ__its own Engineer and Attorney; at c"it `own oitt and that legal' ser t vi ces 'and.[engisn_Ge_ii.pg„s.er,yices-,shall-not; be , the obligation of-=tbe--C2TY--nrider'zthis'agreement , ” - 1 - • 2. That except as modified herein all other terms and conditions are and shall remain the same as set forth in the original Agreement . Executed on the /.2r4 day of tit/ , 1978 by the CITY. • ATTEST: CITY OF COSTA MESA .`- By : 94/7-1,r27/6177,14,1 ity erk o t e ity o% or o the City o Costa Costa Mesa Mesa 4 /971 fl COSTA MESA SANITARY DISTRICT C413- AS TO FORM YATORNEY By resident ATTEST: Secretary • 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 - �cyc/ed 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 ` .estmena apd_d4.tbursement"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 224 day of , 1986 by duly adopted Council action. CITY OF COSTA MESA / BY: 4 -- - _...A.„.. „._ . Mayo . /% ATTEST: / , "sty Clerk / APPROVED by the Costa Mesa Sanitary District this /2 tL day of _lc , 1986 by duly adopted Board action. . COSTA MESA SANITARY DISTRICT B . \ l I ! \/9\ Q il ',d ti P esi.e -t J ATTEST: Secretary APPROVED AS TO FORM: City Attorney APPROVED AS TO FORM: 5� -- - Atto n?y fortbe DISTRICT COSTA MESA SANITARY DISTRICT STATEMENT OF POLICY • Appointment of District Manager PURPOSE The purpose -of this policy is to establish guidelines in accordance with/the City of Costa Mesa and the Costa Mesa Sanitary District contract , whereby the City is responsible for appointing a District Manager . It is the desire of the City and the Costa Mesa Sanitary District to have a Manager who can, not only meet the needs of the City but also function and work in close harmony with the District. II POLICY It shall be the policy of this Board to accept the procedure offered by the City Manager in his letter dated July 25 , 1978 . III PROCEDURE The City Manager shall : 1 . Forward a letter to the Costa Mesa Sanitary District introducing the candidate . 2 . The letter will give a -brief synopsis of qualifica- tions , indicating education and work experience . 3 . The letter will suggest a time and place in which the City Manager will introduce the candidate to the Costa Mesa Sanitary District . 4. The letter will request ratification of the appoint- ment of the candidate . The Costa Mesa Sanitary District will then take the necessary action needed for ratification . •