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HomeMy WebLinkAboutMINUTES - 08132002 - C35 TO: BOARD OF SUPERVISORSjr + FROM: MAURICE M. SHIU, PUBLIC WORKS DIRECTOR DATE: August 13, 2002 SUBJECT: APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute a contract with the Diablo Water District for the transfer of County Service Areas M-25, M-26, and M-27, Bethel Island area. (District V) Project No. TX9E80 SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION L Recommended Action: APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute a contract with the Diablo Water District (District) for the transfer of County Service Areas M-25, M-26, and M-27, Bethel Island area. II. Financial Impact: There is no impact to the County General Fund. Revenues for these areas are derived from water use charges. all Continued on Attachment:X SIGNATURE: F -`RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION OF BOARD COMMITTEE ,APPROVE OTHER SIGNATURE(S): '` p ACTION OF BQA D ON August 13, 2002APPROVED AS RECOMMENDED xx OTHER VOTE OF SUPERVISORS XX UNANIMOUS(ABSENT None ) AYES: NOES: ABSENT: ABSTAIN: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. SE:sr G:\GtpData\SpDist\Board Orders\2402\48 August\08-13-02 BO-Diablo Water District.doc Orig.Div: Public Works(Special Districts) Contact: Skip Epperly(313-2253) cc: County Administrator ATTESTED: Augps t 13, 2002 Assessor Auditor-Controller JOHN SWEETEN,Clerk of the Board of Supervisors and County County Counsel i.rtFCO Administrator Mike Yeraka,Diablo Water District 2107 Main Street P.O.Box 127 Oakley,CA 94561 By _ Deputy P Y SUBJECT. APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute a contract with the Diablo Nater District for the transfer of County Service Areas M-25, M-26, and M-27, Bethel Island area. (District V) Project No. TX9E80 DATE: August 13, 2002 PAGE 2 111. Reasons for Recommendations and Background: The purpose of this agreement is to provide the terms of the transfer of three potable water systems from Contra Costa County (County) to Diablo Water District (District). The purpose of the transfer is to make administration, operation and maintenance of the three water systems more efficient, possibly resulting in cost savings to the water system users. The District has provided operation and maintenance of the three systems since July 1, 1994. The County has provided oversight responsibility for the three systems. Now the parties believe that this is a duplication of effort and service would be more efficiently provided by the District. The County will initiate the dissolution and annexation procedures with Local Agency Formation Commission of Contra Costa County (LAFCO). The District will comply with the County's Health Department transfer of ownership requirements. TV. Consequences of Negative Action. The transfer of the three water systems will not proceed. AGREEMENT BETWEEN COUNTY OF CONTRA COSTA ORIGINAL AND DIABL.O WATER DISTRICT REGARDING COUNTY SERVICE AREAS M-25, M-26, AND M-27 This agreement is made Aust 13, 2002 , by and between the COUNTY OF CONTRA COSTA, a political subdivision of the State of California, hereinafter referred to as "the County," and DIABLO WATER DISTRICT, a local governmental agency of the State of California, hereinafter referred to as "the District." WHEREAS, pursuant to a service agreement with the County, dated July 1, 1994, ("Service Agreement"), the District has been operating and maintaining water well systems comprising miscellaneous County Service Areas (CSA) of the County, including those designated as CSA M-25 Knightsen, CSA M-26 Beacon West and CSA M-27 Willow Park Marina (these three service areas are hereinafter collectively referred to as the CSAs); and WHEREAS, the County and the District desire to provide for the transfer from the County to the District ownership of the CSAs, which consist of the equipment and materials described in Attachment A, which is attached hereto and incorporated herein, together with the assets described below in Section 4; and WHEREAS, the territory of each of the CSAs is not within the physical boundaries of the District, and the County intends to apply to the Local Agency Formation Commission ("LAFCO") to dissolve the CSAs and simultaneously annex into the District the territory of the dissolved CSAs as non-contiguous territories of the District; and WHEREAS, the County will adopt a resolution requesting LAFCO it initiate proceedings for the dissolution and annexation, and the District will submit an appropriate will-serve letter to LAFCO and the County; NOW THEREFORE, in contemplation of the dissolution of the CSAs and the simultaneous annexation of the territory of the CSAs into the District, and contingent upon the dissolution and annexation, the parties agree as follows: 1. Purpose. The purpose of this agreement is to provide the terms of the transfer of three water systems of the CSAs from the County to the District in the event that LAFCO approves the dissolution and annexation. The purpose of the transfer is to make the administration, operation, and maintenance of the three water systems more efficient, possibly resulting in cost savings to the three water systems' customers. The District has provided operation and maintenance services of the three water systems pursuant to the Service Agreement. Although the County has provided oversight responsibility for the three water systems, the parties believe that it is no long necessary for the County to continue to provide this service and wish to avoid a duplication of effort by transferring ownership of the three water systems to the District. 1 2. Annexation and Dissolution. After execution of this agreement by both parties, the County shall promptly deliver to the District maps, legal descriptions, and other documentation relating to the CEAs and shall promptly transmit to every property owner and water customer in the CSAs a description, the purpose, and the effects of the transfer. Thereafter, the County shall promptly submit to LAFCO an application to dissolve the CSAs and simultaneously annex into the District the territories of the CSAs. The District shall submit a will-serve letter to LAFCO and the County prior to the County's application to LAFCO. The County shall pay for the dissolution and annexation of the CSAs. The District shall comply with the requirements of the County's Health Department for transfer of ownership as set forth in Health and Safety Code Section 115540, which requires the water supplier to demonstrate adequate technical, managerial, and financial (TMF) capability to assure the delivery of the pure, wholesome, and potable drinking water. The District, in cooperation with the County, shall complete and process the TMF capacity assessment form. The County shall pay the $154 per system application fee. The TMF requirements will be completed prior to LAFCO approval. The terms and conditions of this agreement shall be submitted by the County to LAFCO as part of the proposed conditions of the dissolution and annexation. The District shall continue to operate and manage the CEAs pursuant to the terms of the Service Agreement until annexation of the territories of the CSAs to the District. 3. Costs and Expenses. Each party shall bear the costs of its staff and consultants in connection.with the application to LAFCO and in meeting the requirements of the County's Health Department. The County shall pay the LAFCO fees, prepare the County's resolution, and provide the legal descriptions and site maps required by LAFCO for the dissolution and annexation process. Until the completion of the dissolution and annexation process, each party shall continue to pay fees and costs for operation and maintenance of the three water systems as set forth in the Service Agreement. The County shall continue to reimburse itself from the revenues of the CSAs for any legitimate operation and maintenance costs incurred in connection with the CSAs until completion of the dissolution and annexation process. The County shall consult with the District concerning such reimbursements, insofar as requested by the District. 4. Transfer of Assets and Assumption of Operation. Within thirty working days following the completion of the dissolution and annexation process by LAFCO, the County shall cause to the be transferred to the District the titles, permits, licenses, easements, and other interests in real property and all other assets (including cash, accounts receivable, and the fixed assets as set forth in Attachment A) and all liabilities (including contracts payable and accounts payable), fund balances, and records of each of the CSAs. Thereafter, the District shall operate and maintain the existing water systems for the purpose of providing a public water supply in the annexed territories. Any payments from customers of the CSAs made to the County following completion of the dissolution and annexation process shall be transmitted to the District. The District shall take the water systems in the annexed territories in their current condition, and the District shall not make any claims 2 to the County for repairs, damages, maintenance, or other expenses associated with the three water systems. All remediation or clean-up casts or other expenses or obligations existing at the time of the dissolution and annexation or subsequently discovered or incurred shall be the sole responsibility of the District. 5. Collection of District Charges. Following dissolution and annexation, the parties desire that the County Tax Collector collect on the County secured- property tax rolls the charges, fees, special taxes, and assessments from time to time imposed by the District on the water users or property owners in the territories of the CSAs in the same manner and subject to the same terms and conditions as set forth in the Agreement for Collection of Special Taxes, Fees, Charges, and Assessments between the County and the District, which is attached hereto as Attachment B and incorporated herein. 8. Release and Waiver of Unknown Claims. The District and the County, each separately on behalf of itself and its respective officers, employees, agents and assigns, hereby releases and discharges the other and its respective officers, employees, agents, and assigns from any and all claims, demands, causes of action, obligations, damages, and liabilities, including, without limitation, attorneys' fees and costs, which the releasing party now has or could assert at the time of the transfer, in any manner related to or arising directly or indirectly from or connected with the performance of this agreement. 7. Indemnity. After the transfer of assets and assumption of operations pursuant to Section 4 hereof, the District shall indemnify, defend, save, protect, and hold harmless the County, officers, agents, contractors, and employees from any and all claims, costs, and liability, including reasonable attorneys' fees, for any damage, injury, or death, thereafter occurring including, without limitation, all consequential damages from any cause whatsoever, to persons or property arising directly or indirectly from or connected with the performance of this agreement. 8. Assignment Prohibited. Neither the District nor the County may assign or transfer this agreement or any interest herein. 9. Remedies. The parties agree that the sale remedy for violation of any of the terms of this agreement shall be specific performance of the agreement, and the parties each waive their respective rights to trial by jury of any claim or cause of action arising out of this agreement, 14. 1994 Service Agreement. This agreement supersedes the Service Agreement between the County and the District dated July 1, 1994, with respect to CSA M-25, M-25, and M-27, it shall remain in full farce and effect with respect to CSA M-28 Willow Mobile Home Park. 3 COUNTY OF CONTRA COSTA DIABLO WATER DISTRICT Sup -'sor Gioia, Char Board of Supervisor Title: '- s Date; AuMst 13, 2002 Gate: _ ATTEST: ATTEST : John Sweeten, Clerk of the Beard Mike "Yeraka, secretary - of Supervisors and County Administrator Board of Dir tprs, /Deputy ,` Gate: ,!Ist 13, 2002 RECOMMENDED FOR APPR AL: Maurice Shiu, Public Works re for By: Date; -741,101-- Form 41, 0 1-- Form Approved: Silvano B. Marchesi, County Counsel By: i 'Ew . IR =..;.X,,zr 'A ink Deputy unty Couns Date: (,s SK:gpp G:\GrpData\Spdist\Skip\Diabio Water Dist Agreement.doc 06/02 4 Attachment A CSA M-25 CSA M-26 CSA M-27 CSA M-25 Knightsen Community Water System Minor Concrete (Well slab) Hydropneumatic Tank Pump Control system 14" Conductor Casing 10" Blank Well Casing 10" Well Screen 6" Water Main (Paved Area) 8" Water Main (Paved Area) 8" Water Main (Unpaved Area) 8" Water Main (Unpaved Area) 1 " Service Line Well Pump and site Piping Chain Link Fence (Type CL--8, Extension ARM) Electrolier CSA M-26 Beacon West 1 Well Head and Pump enclosed with Chain Link Fence Air Corepressor 2 Hydro Tanks 1 Shed with Electric Panels Chain Link Fence around Shed and Tanks One Water Main and Water Service Laterals and tither Miscellaneous Piping CSA M-27 Willow Mobile Home Park Marina Chlorine Pump System Shed with Electric Panels and Controls Diesel Powered Generator 2 Well Heads with Pumps 2 Hydro Tanks Water Main and Services All Enclosed (Wellheads, Shed, Generator and Tanks within Chain Link Fence) Attachment B AGREEMENT FOR COLLECTION OF SPECIAL TAXES, FEES, CHARGES AND ASSESSMENTS The COUNTY OF CONTRA COSTA, a political subdivision of the State of California, acting by and through the AUDITOR-CONTROLLER OF THE COUNTY OF CONTRA COSTA, hereinafter referred to as "County" and Diablo Water District, a political subdivision organized under the law of the State of California, hereinafter referred to as Entity, agree as follows: 1. Subject to the terms and conditions of this Agreement, County agrees to collect on the County tax roils the special taxes, fees, charges and assessments imposed by Entity. 2. By such date as set by the Auditor for each fiscal year, Entity agrees to notify the Auditor of the amount of each special tax, fee, charge or assessment to be collected for each assessor's parcel. 3. County may charge fees established by the County Board of Supervisors for collection of the special taxes, fees, charges and/or assessments collected by County for Entity. The calculations for determining such fees shall be made available to the Entity on request. 4. Entity believes that the taxes, fees, or assessments imposed by Entity and collected pursuant to this Agreement comply with all requirements of law, including but not limited to Articles XIIIC and XIIID of the California Constitution (Proposition 218). 5. Entity hereby releases and forever discharges and agrees to defend, indemnity and save harmless County and its officers, agents and employees (hereafter "County") from any and all claims, demands, liabilities, costs and expenses, damages, causes of action, and judgments, in any manner arising out of county's action in connection with the collection and placement on the roll of the special tax, fee, charge or assessment or any action by Entity in establishing a special tax, fee, charge or assessment which County collects for Entity; provided, however, Entity shall not be responsible for any administrative or clerical errors or omissions made by the County or its officials in the collection or placement of any such taxes, assessments, or fees on the roll. As to such collection of such fees, charges, taxes or assessments or placement of them on the roll, County and its officials shall retain all immunities provided them by law. 5. Notwithstanding any provision of law, Entity agrees that, if a court of competent jurisdiction holds that an assessment, special tax, fee. or charge is uncollectible because of violating State or Federal law, 1) the Auditor-Controller may withhold from the next property tax distribution to Entity any amount the County is thereby unable to collect, and 2) the Tax Collector may remove the assessment, special tax, fee, or charge from the tax roll. This provision is intended to avoid all County liability for such special taxes, fees, assessments or charges under the Teeter Plan by allowing the Auditor-Controller to reverse and charge back Teeter Plan advances for such special taxes, fees, assessments or charges. 1 Entity any amount the County is thereby unable to collect and 2) the Tax Collector may remove the assessment, special tax, fee, or charge from the tax roll. This provision is intended to avoid all County liability for such special taxes, fees, assessments or charges under the Teeter Plan by allowing the Auditor-Controller to reverse and charge back Teeter Plan advances for such special taxes, fees, assessments or charges. 7. Entity and County agree to the following with respect to any legal challenge arising as a result of collection or enforcement of a delinquent special tax, assessment, fee or charge by tax sale under the Revenue and Taxation Code: (a) Entity shall defend and/or bear the cost of defending the action, and (b) if a court determines that collection cannot be enforced through the tax sale, the levy or charge shall be canceled as a lien against the property. (c) County agrees to notify Entity if Entity is not named in the action. 8. Neither Entity nor County shall assign or transfer or attempt to assign or transfer this agreement or any interest herein. 9. This Agreement shall be effective for the 1997-98 fiscal year and skull be automatically renewed for each fiscal year thereafter unless terminated. as hereinafter provided. 10. Either party may terminate this Agreement for any reason for any fiscal At year by giving written notice thereof to the other party before the May 1 prior to the fiscal year for which termination is to be effective. 11. County's or Entity's waiver of breach of any one term, covenant, or other .prevision of this Agreement, is not a waiver of breach of any other term, nor subsequent breach of the term or provision waived. 12. The person signing this Agreement for Entity represents that the Entity, through its governing body, has authorized him/her to sign this Agreement on behalf of Entity. 2 Dated: � �' � � � E btablo Water ntity t}1strIot ICY. T`dle: General Manager Dated: CONTRA COSTA COUNTY ley. Au ' c-r--Controller c:marin-ag.doc 3