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HomeMy WebLinkAboutF-3a - Collection of Sewer Connection Charges for County Sanitation District No. 7BY YHE CITY COUNCIL March 29, 1984 CITY OF NEWPORT BEACH CITY COUNCIL AGENDA ITEM NO.: F3A APR 091984 TO: City Council APPROVED ' FROM: Building Department SUBJECT: Collection of Sewer Connection Charges for County Sanitation District No. 7 RECOMMENDATION: It is recommended that the City Council approve the attached agreement to permit the Building Department to collect sewer connection charges for County Sanitation District No. 7 and authorize the Mayor and City Clerk to execute said agreement. DISCUSSION: The Board of Directors of the County Sanitation District No. 7 on March 14, 1984 approved a tentative agreement to have the City of Newport Beach collect their sewer connection charges. A similar agreement currently exists for the County Sanitation District No. 5. The County Sanitation District in reassessing their fee structure recently discovered that a small portion of Newport Beach is serviced by Sanitation District No. 7. Development in this area was not charged any sewer assessment by the City nor the County. The County Sanitation District No. 7 is therefore trying to collect retroactively on these improvements and has requested the Building Department to collect sewer connection charges on new developments. This method is preferred by the contractor or developer since he does not have to make an extra trip to the County offices and can get a building permit right away. it is also beneficial for the City since the County reimburses us for collecting these fees. Prepared By: Raimar W. Schuller, Building Director AGREEMENT FOR COLLECTIONâ–șOF SEWER CONNECTION CHARGES THIS AGREEMENT is made and entered into this 12th day of September, 1984, by and between: ME COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA, hereinafter referred to as "District", CITY OF NEWPORT BEACH, a municipal corporation, hereinafter referred to as "City". W I T N E S S E T H WHEREAS, District has, by the enactment of Ordinance No. 606, established a schedule of sewer connection charges; and WHEREAS, a portion of the territory of the District is wit4i,4 the city limits of City; and WHEREAS, it is for the mutual benefit of City and District that the sewer connection charges provided for in said Ordinance No. 606 of the District be collected in a manner most expedient and least burdensome on the owners of property within the City; and WHEREAS, the City will benefit by the construction and maintenance by District of sewage facilities of the District within the city limits of City from the funds to be collected from said sewer connection charges. NOW, THEREFORE, it is mutually agreed as follows: Section 1: City, as agent, will and does hereby agree to issue permits and collect the charges established by District under said Ordinance No. 606, as amended from time to time. Section 2: District shall prescribe those classifications of charges to be -1- V collected by City. Section 3: City will account for the charges collected and remit to District monthly the monies so collected, except as provided in Section 6 hereof. Section 4: Procedures mutually agreeable to City and District shall be established for collection and remittance of said fees. Section 5: District does hereby appoint and nominate City and its agents and employees (as the same may be designated by City), as agents of the District for the purpose of issuing permits and determining and collecting the sewer connection charges established under Ordinance No. 606, as amended. This does not authorize City 'to act as agent for the General Manager or to_ perform the duties of the General Manager of the District as set forth and established in said Ordinance No. 606, as amended, except as expressly set forth in this Agreement. )J Section 6: City agrees to act as agent for District as herein provided for a fee equal to five (58) percent of the fees collected by City for permits issued pursuant to the provisions of this Agreement, and District agrees to pay said fee monthly. Said five (5%) percent fee of City shall be deducted from the charges collected by City and the balance remitted to District pursuant to Section 3 herein. Section 7: If City is presented with a dispute as to the validity, reasonableness, enforcibility, or applicability of the charges agreed to be collected by it for District, City shall notify District of the problem and District shall take over the collection and enforcement of its ordinances in subject cases. It is contemplated that this shall be the procedure for serious disputes made upon some valid legal right or basis. -2- Section 8: City shall not be liable to District for its unintentional or inadvertent failure to collect a connection charge actually due District or its unintentional or inadvertent miscalculation of the amount of the charges, fee, or fees due District. Section 9: District hereby agrees to hold City free and harmless of any and all liability that might arise if. any such fees collected by City shall be determined to have been legally collected. District further agrees to hold the City harmless from any liability which may accrue as a result of failure of the District to provide sewer services or capacity to any party who applies to the City for connections under the Agreement. Section 10: District agrees to provide legal services in the defense of any action seeking to recover sewer connection fees alleged to have been. illegally collected. Section 11: It is agreed that at the request of either party hereto, formal renegotiation of this Agreement shall be made at two years from the effective date hereof. Section 12: This Agreement may be terminated by either party giving a 180 -day written notice to the other party designating a termination date, which date shall be the first day of a calendar month. Section 13: This Agreement shall become effective on the 12th day of September, 1984. -3- IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. ATTEST: City Clerk APPROVED AS TO FORM: City Attorney CF9 COUNTY SANITATION DISTRICT NO. 6 OF ORANGE COUNTY, CALIFORNIA By Chairman Board of Directors Bp Secretary Board of Directors CITY OF NEWPORT BEACH, a municipal corporation s By. Mayor -4- 5