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HomeMy WebLinkAboutResolution 1979 - 0048RESOLUTION NO.79-48-7 APPROVING AGREEMENT WITH CITY OF ORANGE FOR COLLECTION OF SEWER CONNECTION CHARGES A RESOLUTION OF TI-JE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO.7 OF ORANGE COUNTY,CALIFORNIA,APPROVING AGREEMENT FOR COLLECTION OF SEWER CONNECTION CHARGES AND RESCINDING THE EXISTING AGREEMENT IMPLEMENTING COUNTY SANITATION DISTRICT NO.7 ORDINANCE NO.705 WITH THE CITY OF ORANGE *******.******** WHEREAS,County Sanitation District No.7 enacted Ordinance No.705 providing for :rules and regulations relating to connections to District sewage facilities,establishing charges therefor;and, WHEREAS,County Sanitation District No.7 and the City of Orange made and entered into an agreement dated July 18,1962,which provided for,among other provisions,the collection of connection charges imposed by County Sanitation District No.7 pursuant to Ordinance No.705,as amended;and, WHEREAS,County Sanitation District No.7 and the City of Orange have determined that the terms and conditions of the presently-existing agreement are no longer in the practical best interests of the respective parties,and,therefore,desire to rescind said agreement and re—enter into a new and different agreement setting forth the intent of the parties as of this date;and, WHEREAS,the City of Orange has approved the agreement for collection of the sewer connection charges as proposed by County Sanitation District No.7; NOW,THEREFORE,the Board of Directors of County Sanitation District No.7 does hereby resolve:. Section_1.That certain agreement attached hereto as Exhibit “A” providing for the collection of sewer connection charges by the .--~-.-— City of Orange,is hereby approved,to be effective April 11,1979. Section 2 That the General Manager,the District Chairman and Secretary,and the General Counsel are all instructed and authorized to prepare and execute all necessary documents required to implement the provisions of Ordinance No.716 of County Sanitation District No.7 pertaining to the establishment of sewer connection charges and to implement the provisions of the above—referenced agreement. PASSED AND ADOPTED at a regular meeting held April 11,1979. - :-----..--.--- TLW:pj 6/14/78 1/10/79 1/25/79 2/07/79 ~AGREEMENT FOR COLLECTION OF SEWER CONNECTION CHARGES --COUNTY SANITATION DISTRICT NO,7 2 AND CITY OF ORANGE 3 4 THIS AGREEMENT,is made and entered Into this 11th day of 5 April ,1979,by and between the CITY OF ORANGE, 6 .a municipal corporation,hereinafter referred to as “City”~ 7 and COUNTY SANITATION DISTRICT NO.7 OF ORANGE COUNTY, 8 CALIFORNIA,hereinafter referred to as “District,~ 9 WITNESSETH: 10 WHEREAS,District has,by the enactment of Ordinance No,705, 11 as amended,established a schedule of sewer connection charges; 12 and 13 WHEREAS,all or a portion of the improved territory of the 14 District is within the city limits of City;and 15 WHEREAS,the City,by and through its Building Department, • 16 regulates all new construction with the City;and 17 WHEREAS,it is for the mutual benefit of City and District 18 that the sewer connection charges provided f~r in said 19 Ordinance No.705,as amended,of the District be collected •20 in a manner most expedient and least burdensome for the owners 2].of property within the City;and 22 WHEREAS,the City will benefit by the construction and 23 maintenance of sewage facilities of the District within the 24 city limits of City by District from the funds to be collected 25 from said sewer connection charges;and -. 26 WHEREAS,City and District have heretofore,on the 18th 27 day of July,1962,entered into an agreement for the collection 28 of District sewer funds,and the parties hereto have agreed 29 to terminate said contract as of the date set forth herein. 30 NOW,THEREFORE,it is mutually agreed between the parties 31 as follows: • 32 1.City and District,foj’and in consideration of the EXHIBIT “A—i” 3,payments which have already been mad~e upon said original con- 2 tract,and for and in consideration of the further covenants 3 and agreements herein set forth,now agree that this agreement shall be substituted in place of and instead of said original 5 agreement dated July 18,1962,and said agreement is hereby 6 expressly terminated. 7 2.City,as agent,will and does hereby agree to issue 8 permits and collect the charges established by District under said Ordinance No.705,as amended,from time to time. 3.DIstrict shall prescribe those classifications of charges to be collected by City. 12 4.City will account for the charges collected ~nd remit toDistrict monthly,the monies collected,except as provided 14 in Section 7 hereof. • 15 5.Procedures mutually agreeable to City and ‘District 16 shall be established for collection and remittance of said • 1?fees. 18 6.District does hereby appoint and nominate City and its 19 agents and employees (as the same may be designated by City) 20 as agents of the District for purposes of issuing permits and 21 determining and collecting the sewer connection charges es 22 tablished under Ordinance No.705,as amended.This does not 23 authorize City to act as agent for the General Manager or to. 24 perform the duties of the General Manager of the District or 25 to act on behalf of the District,except as expressly set forth 26 in this agreement. 27 7.City agrees to act as agent for District as herein 28 provided for a fee equal tä five (5%)percent of the fees 29 collected by City for permits issued pursuant to the provisions 30 of this agreement.Said five (5%)percent fee of City shall 3].be deducted from the charges collected by City and to be re—j 32 mitted to District pursuant.to Section 4 herein, EXHIBIT ‘~A—2” 8.Ctty agrees to prepare and submit to District a detailed accounting statement of the fees collected through the effec tive date of this agreement under the previous agreement executed the 18th day of July,1962,and agrees to pay that sum to District within thirty (30)days after the date of this agreement,provided that such sum shall have deducted therefrom the sum described herein to be paid to City by District for the outright purchase of trunk sewer lines nos, 1 and 4 and sums due for the purchase of capacity rights in trunk sewer lines nos.2,3 and 5.Any interest earned on the deposits of District held by.City during the duration of the previous agreement shall be retained byand deemed vested solely in City.The earned interest to be credited to City is determined to be the fair and equitable reimbursement of City monies expended for the construction of the sewer lines which are the subject of this agreement, •9.All sewer lines described herein have been constructed by City at its sole expense in accordance with the Master Plan of Trunk/Subtrunk Sewers of District,both as to size and location.The sale price to District shall be equal to the. original cost of construction of each of the trunk sewers. City agrees to sell and District agrees to purchase in accordance with the terms hereinafter set forth,all of the right,title and interest in trunk sewer linesnos.1 and 4, as described in Exhibit ‘A”,attached hereto and made a part hereof as though fully set forth herein. As to trunk sewer lines nos.2,3 and 5,as more particularly described in Exhibit “A”,the City agrees to sell and District agrees to purchase sewer capacity rights in City’s trunk sewer lines nos.2,3 and 5.SaId sewer capacity rights shall be equivalent and equal to that amount of sewage and industrial waste that is presently being discharged into trunk sewer lines EXHIBIT “A—3” 3. 2 3 4 5 6 7 8 .9 10 1]. •12 13 14 15 16 17 •18 19 20 21 • 22 23 25 26 27 28 29 30 31 32 3.nos 2,3 and 5,as of the date of the execution of this 2 agreement. 3 Provided,however,that the purchase of such capacity rights 4 in trunk sewer lines nos.2,3 and 5 shall give no person, 5 firm or entity,public or private,any right to use or to 6 connect to trunk sewer lities nos.2,3 arid 5 without the consent 7 of City.Nor shall the purchase of capacity rights in trunk 8 sewer lines nos.2,3 and 5 permit any person,firm or entity, 9 public or private,to increase the amount of sewage or effluent 10 which can be placed in trunk sewer lines nos.2,3.and 5,over 11 the total amount of sewage or effluent being discharged into 12 trunk sewer lines nos.2,3 and 5 as of the date of the execu 13 tion of this agreement,except as City may in the future consent 14 to any such increase...•. 15 10.The transfer of ownership from Cityto District of the 16 three trunk sewers described as items nos.2,3 and.5 on 17 Exhibit “A”,attached hereto,and the two trunk sewers described 18 as items nos.1 and 4 on Exhibit “A”~attached hereto,shall 19 be in accordance with the following provisions: 20 A.District shall,within thirty (30)days of the execution 21 of this agreement,purchase from City,and City shall sell 22 trunk sewers nos.1 and 4 as said lines are identified on 23 Exhibit “A”,.attached hereto and made a part hereof as though .24 fully set forth herein,. . . .. 25 B.The aforementioned trunk sewers nos.1 and 4 shall be. 26 purchased by the District for the total sum of $280,796,35, 27 which represents a total of $203,740.35 for trunk sewer line 28 no 1,and $77,056.00 for trunk sewer line no~4, 29 C.Within thirty (30)days of execution of this agreement, 30 City shall sell and District shall buy capacity rights in 33.trunk sewer lines nos.2,3 and 5 for a total sum of 32 $115,952.02.This $115,952.02 sum represents 90.00%of the EXHIBIT “A—4” 3 capacity rights of trunk sewer line no.5 and 30.20%of the ~capacity rights of trunk sewer lines nos 2 and 3.The 90.00% 3 capacity rights of trunk sewer line no.5 represents 90.00% 4 of the capital cost of $54,575.00 and is thus calculated to be 5 $49,117.50 of the $115,952.02 sum.The remaining $66,834.52 6 sum represents 30.20%of the $221,306.35 capital cost and thus 7 30.20%of the capacity rights in trunk sewer lines nos.2 and 8 3,and is based on 30.20%of the Master Planned drainage 9 area being within Sanitation District No.7 boundaries as of 3.0 November 1,1978,representing 30.20%of the Master Planned 13.sewage flows.Beginning July 1,1979,and each succeeding 12 July 1,the District shall pay the City for acquisition of 3.3 additional capacity rights in trunk sewers lines nos.2 and 3 3.4 based on the total acres annexed within the Master Planned 3.5 drainage area in the preceding year times $143.70,‘for a 3.5 subtotal amount of payments in this Subsection C not to exceed 3.7 the capital cost of $221,306.35 of trunk sewer lines nos.2 and 18 3.Provided,however,City will sell to District all right, 19 title and interest in trunk sewer lines nos.2,,3 and 5 no 20 later than July 1,1998,with the City reserving the express 21 right to tender the sale to District at any time prior to 22 said date. 23 D.City shall be responsible for the maintenance of trunk 24 sewer lines nos.2 and 3 durthg such time as ownership remains 25 with City and capacity rights only are granted to District. 26 Upon execution of this agreement,District shall be solely re— 27 sponsible for maintenance of sewer line no.5,inasmuch as 90.00% 28 of the capacity rights in sewer line no.5 are being transferred 29 to District pursuant to this agreement. 30 11.District and City agree that if the City is presented 31 with a dispute as to the validity,reasonableness,enforcibility, 32 or applicability of the charges agreed to be collected by it for EXHIBIT “A~-5” the District and the City shall notify the District of the prob lem,and the District shall take over the collection and enforce ment of its ordinances in subject cases.It is contemplated that this shall be the procedure for serious disputes made upon some current legal right or basis as distinguished from crank-type or ill-founded disagreements. 12.City shall not be liable to the District for its unin tentional and inadvertent failure to collect a connection charge actually due District or its unintentional or inadvertent mis calculation of the amount of the charges,fees or fees due District. 13.District hereby agrees to hold City fi~ee and harmless of any and all liability that might arise if any such fees collected by City shall be determined to have been illegally collected. 14.District agrees to provide legal services in the defense of any action seeking to collect sewer connection fees alleged to have been illegally collected. IN WITNESS WHEREOF,the parties hereto have executed this agreement the day and year first above written. CITY OF ORANGE,a municipal,corporation ATTEST:By1f~’—”~-~~~ ~ Mayor J-3a-7~ City Clerk ~/1 COUNTY SANITATION DISTRICT NO.7 OF ORANGE COUNTY,CALIFORNIA APP ED AS TO FORM: Co Un se 1 3. 2 3 4 5 ‘7 8 ‘.9 10 11 12 13 14 15 16 •17 18 • 3.9 20 21’ 22 23 24~ 25 26 27 28 29 30 3]. 32 By By Chairman,~Board of Directors Secretary,Board of Directors EXHIBIT “A6” 3. 2 3 4 5 ~6 7 8 9 10 11 12 13 14 15 •16 17 18 •19 20 • 21 22 23 24 25 26 27 28 29 30 31 32 EXHIBIT ‘A” SCHEDULE OF MASTER PLANNED TRUNK AND SUBTRUNK SEWER LINES CONSTRUCTED BY CITY OF ORANGE TO BE SOLD TO COUNTY SANITATION DISTRICT NO.7 Year Total When Constructed ConstructedDescription ____________ 1.Santiago Canyon Road —Linda Vista to Orange Park Blvd. 5317 L.F.2111 &18”VCP plus appurtenances 1972 2.Kennymead &Randal to Amapola 3754 L.F.18”&15”VCP plus appurtenances 1972 3.Amapola to Chapman Avenue 2113 L.F.15”VCP plus appurtenances 1976 SUBTOTAL TRUNK SEWERS REIMBURSEMENT 4.Spring Street —Hewes Ave. 7702 L.F.12”VCP plus appurtenances 1963 5.E.Chapman -Solano to 1486”E.of Crawford Canyon Rd.2659 L.F.12” &10”VCP plus appurtenances 1972 SUBTOTAL SUBTRUNK SEWER REIMBURSEMENT TOTAL PURCHASE/SALE PRICE $203,740.35 $177 ,944,35 •$43,362.00 $425,046.00 $77,056.00 •$54,575.00 $131,631 .00 $556,677.70 EXHIBIT “A-7” STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I,J.WAYNE SYLVESTER,Secretary of the Board of Directors of County Sanitation District No.7 of Orange County,California,do hereby certify that the above and foregoing Resolution No.79-48-7 was regularly passed and adopted at a regular meeting of said Board on the 11th day of April , 1979 ,by the following vote,to wit: AYES:Don Smith (Chairman),Fr~aricis Glocknei,Philip Anthony, Paul Ryckoff,Donald Saltarelli and Bill Vardoulis NOES:None ABSENT:James E.Ward IN WITNESS WHEREOF,I have hereunto set my official seal of County Sanitation District No. California,this 11th day of April , ig79 S. .. hand and affixed the 7 of Orange County, ter,Secretary, ors of County strict No:7 County,California S-104