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HomeMy WebLinkAboutCC RESO 58328 8 5 E RESOLUTION NO. 57,85Z WHEREAS, the City Council of CITY OF NATIONAL CITY has heretofore determined that it is in the public interest and for the common benefit to obtain an Economic Feasibility Report on the water problems of National City; and WHEREAS, the agreement attached hereto is acceptable to both contracting parties; NOW, THEREFORE: BE IT RESOLVED by the City Council of the City of National City, California, as follows: SECTION 1: That that certain agreement between UTILITIES SERVICE COMPANY and CITY OF NATIONAL CITY, a municipal corporation, a copy of which agreement is attached hereto, be, and the same is hereby, approved. SECTION 2: That Resolution No. 5812 be, and it is hereby, rescinded. SECTION 3: That MAURICE CARRIGAN, Mayor of City of National Bity be, and he is hereby, authorized and directed to execute the same for and upon behalf of the said City. T AGREEMENT IS AGREEMENT made this Of RATIO !CITY, a muntblpal corporation, sixth class, of the State of California, hereinafter called CiiY, and UTILITIES SERVICE COMPANY, a proprietorship, with offices located at 1230 Newhall Street, San Jose, California, hereinafter called COMPANY. day 195i1 by and between CITY OF .MITT 8SE Ht WHEREAS, the City Council of CITY OF NATIONAL CITY deems It to be in the public interest and economy to take steps to assure an adequate water supply at rates the citizens can afford to pay and is of the opinion that said supply and rates can best be obtained by the acquisition of a municipally - owned water system; and privately -owned water system now serv- ing the City can be acquired by the City upon sound, fair and reasonable terms and for a sum within the legal and economic ability of the City to pay; and iHFREAS, the problem of financing present and potential municipal improvements requires a soundly conceived and practical program or plan; and WHEREAS, in the opinion of City, the Company is qualified by training and experience to act as hater Economic: Advisor to the City; to -wit: NO'W, THEREFORE, it is mutually agreed as follows, 7 eThe.City does hereby employ Company to act. e ina professional capacity as Water Economics Advisor to the City,:and the Company does hereby accept.such employ-e ment.to perform the following services upon the following termeand conditions and in -consideration for theepayments, fees and acts as hereinafter set forth. :eee eLe The.Company shall.consult with -the City_ Council and shall -advise them regarding the present privately-ownee water system to determine if it is economically feasible for the City to take steps to acquire the system now furnishing water to the City and its environs and to renew, rehabilitate or replace:the existing water system* • , ' 3. The Company shall prepare and submit to the City a written report setting forth the economic feasibility and soundness of the proposed acquisition of the water system now supplying the City, by purchase at a negotiated price or through condemnation proceedings, the necessary sum to be raised by a bond issue, in order to wholly acquire said water system; the best method of amortizing a bond issue to be authorized in connection with any such acquisition; the probable interest rate and probable interests costs and such other financial or economic data that necessarily should be submitted to the City to enable the City Council in the proper determination of a policy arid the adoption of a Bound workable program with regard to the acquisition of a municipally - owned water system. 4. If on the basis of the aforesaid submitted data the City proceeds with the acquisition of a municipally -Owned Page Two water system and the Council calls an election at which time the voters will be asked to approve the issuance of bonds for such purpose, the Company agrees to prepare and furnish all financial, statistical, economic and informative data concerning the proposal to be voted upon at said election. 5. Upon acquiring a water system, the Company shall render the following services for a period of one (1) year after the taking possession thereof: (a) Prepare a set of rules and regulations for the operation of the water system; (b) Supervise the installation of books and . . records for a water accounting system which will conform to the best practices of public utility management; (c) Instruct the water department personnel the use and maintenance of such records as are necessary; (d) Make monthly audits of the books and records and report thereon; and (e) Be available for consultation on all administra- tive problems in connection with the water department. 6. For the services to be rendered as set forth herein, the City agrees and will pay to the Company a fee equal to three -eighths one percent (3/8 of i$) of the said bond or portion thereof, issue/sold, in the amounts and at the times as follows: (a) . The sum of $750.00 as a retaining fee, to be paid within 21 days after the execution and delivery of this agreement; Page Three (b) The sum of 8,500.00 payable on the date of the regular council meeting of said City in which the bond election for the purposes set forth in this agreement is legally and conclusively determined. (c) A sum equal to the difference between 3/8 of 1% of the bond issue, or portion thereof, sold, and the total of the sums set forth in subparagraphs (a) and (b) of this Paragraph 6, if and when said bond issue Is authorized by the voters and said bond issue, or portion thereof, sold, and within sixty (60) days following sale of said bonds, or each sale, if said bonds are sold in several blocks. 7. The Company is employed hereunder by the City to render a professional, expert service as a rater Economics - Advisor, an independent contractor, and all payments made to the Company pursuant to the terns and conditions of this agree- ment are compensation for such suggestions, recommendations, services and advice as are made by Company in accordance with the terms, conditions and covenants of this agreement; that all expenses incurred in the preparation and performance of the said terms, conditions and covenants imposed on the Company shall be the sole expense of Company; that all other expense in connection With hearings, proceedings, elections and due issuance of any.bonds shall be assumed by the City, all provided, however, that immediately upon demand by City the Company shall furnish in detail, and at its sole expense, all facts, figures and data necessary for, or requested by, City to properly pre- pare, file and maintain an action to condemn the entire water system hereinbefore referred to and which system is commonly- known as the "Sweetwater System", of the California dater and Telephone Company, provided, however, that City shall pay all fees for title searches orde&aby City on necessary properties described by Company. Tu rpqr TegitT''A R';14• c-;o1Jors cT4', fl ApTow 47;76 .polvg osez.c.To.;u ''1.r1zf. 01 ";'0':::200e00 bz'At-pl-s cv qvf_sT ot 8. Nothing herein contained shall prevent the Company -from carrying on its otherusual business activities except where such activity would be adverse or detrimental 9. The City agrees that the City Council of City will cooperate with the representatives of the Company in . . every reasonable way to the end that the Company may secure all information and date requiredby them to perform services herein provided for, upon proper and due request therefor. 10. Nothwithstanding anything to the contrary herein set forth or contained, the Company expressly covenants and agrees as follows: --- (a), That in the ,event :any payment or payments herein provided are not legally - payable by the City, then and in that event the City, the City Council of City, the officers and employees, or any of them, of City shall not incur nor be liable for -any liability whatsoever arising from or out of - - this agreement, and Company specifically agrees to hold City harmless from any payment or payments hereafter made by City to Company and which may be hereafter determined to be illegal by a Court of competent,jurisdiction. (b) That in the event the City doe n not call a bond election,for the purposes herein described, within six (6) months from and after the date of .this agreement, then from and after six (6) months from the date hereof City shall have no further or other liability whatsoever erasing from or out of the terms of this aFreement. The decision to call or not to call said bond election shall be solely and exclusively determined by the City Council of City and its deciaion shall be conclusive and final. Pace Five-- (c) That'in the event the City calla the said bond election and said bond issue is defeated according to law, said City shall have no further or other liability whatsoever arising from or out of the terms of this agreement and, provided further, that in the event said bond issue carries according to law, City shall have no further or other ,liability whatsoever arising from or out of the tertas ©f.this agreement until said bonds are legally sold; that the decision to sell said bonds, or any part thereof, shall be determined sdely and exclusively by the City Council of City and its decision shall be conclusive and final. (d) That the sufficiency of the data to be furnished as provided in Paragraph 3 hereof shall be determined solely and exclusively by the City Council of City andin the event City determines that additional data is necessary and makes request of Company therefor, the Company shall immediately submit such additional data as requested by City; that in the event the Company fails to so do, the City shall have no further or other liability whatsoever arising from or out of the terms of this agreement and City may obtain data from any other source it sees fit and may proceed with the acquisition Of the afore- said water system by a bond'election or otherwise and Company shall make no demand nor shall it be entitled to any other compensation whatsoever/arising from or out of said agreement 0)4 T paid to Company prior to date of Company's failure to perform as demanded by City. IN W1'mLSS WHEREOF the parties hereto, by their representatives thereunto duly authorized, have caused these presents to bC executed r`le cFx..;; and year first above written. Page Six ors CITY OF NATIONAL AL CITY, a municipal corporation: By Au Roc--4.7- MAYOR 1—S Ito CITY CLERK OF CITY OF NATIONAL CITY. and ..,J:d C F. "7 r UTILITIES SERVICE COMPANY a proprietorah Y C P, -the►J Titles k of .'i-ie of the { PASSED AND ADOPTED by the City Council of the City of National City, California, this day of . nu a ry , 19 53 , by the following vote, to -wit: AYES: Councilmen Hart , Parc hen Sarn. NAYS: Councilmen None ABSENT: McClure ATTEST: \\. '2 City Clerk. I hereby approve the foregoing ... .... layor of the Cityy ty- National CiCalifornia. {Resolution I this °' Ordinance day of January 19 53 z Mror of the City of ational City,,lifornia. 1 hereby certify that the above and foregoing is a full and true copy of { Resolution Ordinance No of the City of National City, California, as adopted by the City Council of said Resolutions Ordinances City, and approved by the Mayor of said City, on the day of 19 City Clerk of the City of National City, California. Deputy