Resolution 1979- 33
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RESOLUTION NO. 79 - 3~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING THE
EXECUTION OF A JOINT POWERS AGREE~mNT WITH THE CITY OF MORGAN HILL
DATED APRIL 18, 1979.
BE IT FESOLVED that the City of Gilroy be authorized to
execute the Joint Exercise of Powers Agreement with the City of
Morgan Hill, in the form attached hereto as Exhibit "A" and incor-
porated herein; and
BE IT FURTHER RESOLVED that the Mayor Protempore of the
City of Gilroy be authorized to execute said agreement for and on
behalf of the City of Gilroy, and that the City Clerk of the City
of Gilroy be authorized to attest said execution, and affix the seal
of the City of Gilroy to said agreement.
PASSED AND ADOPTED this 16th day of April, 1979, by the
following vote:
AYES:
COUNCIL MEMBERS: HUGHAN, LINK, PATE, STOUT and
GOODRICH
COUNCIL MEMBERS: None
NOES:
ABSENT:
COUNCIL MEMBERS: CHILDERS and ClIT~NINGHAM
APPROVED:
?(~~
ATTEST:
4hJw/
City
RESOLUTION NO. 79 - 33
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy~ do
hereby certify that the attached Resolution No. 79~33 is an original
resolution, duly adopted by the Council of the City of Gilroy at a
regular meeting of said Council held on the 16th day of ADri1
, 19 79, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of Gilroy, this 19t~ay of Anri1
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EXHIBIT "A"
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1979 JOINT EXERCISE OF POllliRS AGREEMENT BETWEEN
THE CITY OF GILROY AND THE CITY OF MORGAN HILL
RELATING TO JOINT WASTEWATER MANAGEMENT FACILITIES
This AGREEl~NT, dated for convenience as of April 18, 1979
is by and between the CITY OF GILROY ("GILROY") and the CITY OF MORGAN
HILL ("MORGAN HILL"), County of Santa Clara, State of California.
WIT N E SSE T H
WHEREAS, under a prior Joint Exercise of Powers Agreement dated
July 1, 1967, as amended by a Supplement dated January 8, 1969, and a
Second Supplement dated December 19, 1977, GILROY and MORGAN HILL have
established an inter-city boundary line, have constructed a joint
sewage interceptor line from Monterey Highway and California Avenue to
Farrell Avenue with a flow meter thereon at Harding Avenue, and have
expanded the capacity of the sewage treatment plant at Gilroy to accom-
modate the requirements of both cities on an interim basis; and
tmEREAS, under said prior Agreement, both cities contemplated the
execution of a new Joint Powers Agreement for the construction of a new
sewage treatment plant and for the continued operation and maintenance
of all joint facilities; and
WHEREAS, the joint exercise of powers provided for herein will
inure to the benefit of both cities.
NOW, THEREFORE, GILROY and MORGAN HILL hereby agree as follows:
A. PURPOSE
GILROY and MORGAN HILL make this agreement pursuant to Chapter 5,
Division 7, Title I of the Government Code (Sections 6500 et seq.) in
order to exercise jointly the powers common to both as set forth herein.
B . TEPJ1
This Agreement shall become effective when executed by both cities
pursuant to resolutions of their Councils and shall continue in force
and effect so long as any of the facilities governed hereby remain jointly
owned, maintained, or operated, or until amended or superseded by written
agreement of GILROY and MORGAN HILL.
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C. BOUNDARY AGREEMENT
GILROY and MORGAN HILL have established an approved inter-city
boundary line as shown on Exhibit "A" attached hereto. Neither city
shall extend its city limits beyond the inter-city boundar1y line without
the consent of the other evidenced by a resolution of the Council of the
consenting city. Each city agrees to give such consent whenever necessary
to prevent the boundary line of any area to be annexed to either city or
the city limit lines of either city from bisecting any parcel of real
property owned by a single owner.
The cities agree that, if either city shall by annexation proceed-
ings of any kind extend its city limits beyond the inter-city boundary
line without the consent of the other city, then no part of the area to
which such annexation proceedings relate shall be served by the joint
facilities.
D. INTERCEPTOR SEWERS
GILROY and MORGAN HILL have constructed, under the prior agreement,
an interceptor sewer from Monterey Highway and California Avenue to
Farrell Avenue which is a joint sewage interceptor line.
1. Monterey Highway to Farrell Avenue
The capacity allocated to MORGAN HILL in the portion of
said joint facility from California Avenue to Farrell Avenue is
established as 3.1 million gallons per day by the above-mentioned
prior agreement. It is hereby agreed that MORGAN HILL shall
purchase from GILROY an additional 0.9 million gallons per day
allocation of capacity for a total sum of $30,000, said sum being
mutually agreeable to both cities. It is, therefore, agreed that
upon completion of said purchase, the capacity allocated to
MORGAN HILL in the portion of the joint interceptor sewer from
the intersection of Monterey Highway and California Avenue to
Farrell Avenue shall be 4.0 million gallons per day with the
balance of the capacity in said portion of joint interceptor
sewer allocated to GILROY as shown on Exhibit "B", attached hereto.
GILROY agrees to discuss a sale or lease of additional capacity in
the joint interceptor line if it is determined in the future that
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that a portion of the remaining capacity in said line is surplus
to GILROY'S needs.
All costs incurred in the maintenance, repair or replace-
ment of said joint interceptor sewer shall be shared by MORGAN
HILL and GILROY in the same ratio as the capacity allocated to
each city is to the total capacity of said interceptor sewer.
2. Farrell Avenue to the Gilroy Treatment Plaht
Until completion of the new interceptor sewer from Farrell
Avenue to the Gilroy Treatment Plant, MORGAN HILL and GILROY shall
share equally in the capacity of the existing sewer between said
locations. Upon completion of the new intercentor line, all
capacity in the existing GILROY sewer shall revert to GILROY.
The new interceptor sewer between Farrell Avenue and the
Gilroy Treatment Plant shall be constructed to provide a design
capacity of 15.5 million gallons per day. MORGAN HILL and GILROY
shall share equally in the cost of engineering, construction,
repair, maintenance, and all easements or rights of way necessary
for said new interceptor sewer, and shall share equally in the
capacity thereof.
E. FLOW METER
The meter installed by MORGAN HILL on the joint interceptor line
at Harding Avenue shall be used to determine the volume of flow attri-
butable to MORGAN HILL. The meter shall be read by the GILROY staff
and the readings furnished to MORGAN HILL on a weekly basis. MORGk~ HILL
staff may arrange with GILROY staff for joint meter readings. The volume
of flow attributable to GILROY shall be the measured weekly flow through
the sewer plant, less the concurrent weekly volume of flow attributable
to MORGAN HILL through the flow meter. Sewer plant flow records kept by
GILROY shall be open to inspection by ~ORGAN HILL.
F . PRESENT SEWAGE TREATMENT PLANT
1. Allotment of Capacity
The cities agree that the current authorized capacity of
the present GILROY sewage treatment plant is 3,700,000 gallons
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per day. Of this total, the capacity allocated to MORG~~ HILL
shall be 1,400,000 gallons per day and to GILROY is 2,300,000
gallons per day. Any increase or decrease of present plant
capacity authorized or ordered by any supervising governmental
authority shall be shared or suffered by the parties in propor-
tion to their current allocated capacities. GILROY agrees to
discuss with MORGAN HILL
the allocation of additional capacity
in the present plant. Such discussions can commence after the
date construction of the new treatment facility actually begins.
2. Rental
Until completion of the new joint treatment plant, MORGAN
HILL shall pay rent computed as follows for rental of capacity
in the existing Gilroy Treatment Plant:
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For the first 500,000 gallons of flow per day,
7.75 cents per 100 cubic feet.
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For the excess flow over 500,000 gallons per day,
3.875 cents per 100 cubic feet.
These rental rates shall be reviewed annually and adjusted
each March 1 to provide reimbursement of actual costs to GILROY
on the portion of the plant allocated to MORGAN HILL.
3. Operation Costs
In addition, until completion of the new joint treatment
plant, MORGAN HILL shall pay GILROY, as its share of the cost of
operating and maintaining the existing treatment facilities and
of disposing of treated sewage at the existing treatment plant,
the sum of five (5) cents per 100 cubic feet of sewage treated
as measured by the flow meter. This rate shall be adjusted
annually each March 1, if required, to reflect increases or
decreases in GILROY'S actual costs of operation.
G. NEH JOINT SEVJAGE TREATMENT PLANT
The cities are in the process of obtaining the governmental
clearances and financial grants necessary to construct a new joint sewage
treatment plant on land presently owned by GILROY in the vicinity of the
present GILROY treatment plant.
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1. Allotment of Capacity
The cities agree that MORGAN HILL shall have a 42 percent
(42%) share and GILROY a 58 percent (58%) share of the new plant
capacity, and that each city shall contribute to the cost of
construction, operation, and maintenance of the new plant, and
shall share in plant ownership and any government grants, in
proportion to its share of capacity.
2. Wastewater Reclamation
GILROY, in cooperation with the two local water districts,
has constructed and installed a wastewater reclamation project
now in operation to provide treated irrigation water from the
present sewer treatment plant to the area west of GILROY and
along Hecker Pass Highway. GILROY represents that the project
will be utilized as a part of the ultimate wastewater management
facilities and will continue in operation in conjunction with the
new plant and will be approved as part of the final facilities
plan. Therefore, based on GILROY'S representations, the costs of
construction and operation of the wastewater reclamation project
are considered to be part of the new sewage treatment plant, and
MORGAN HILL agrees to contribute 42 percent (42%) of the costs
incurred by GILROY in the retirement of debts incurred in con-
structing said project and in the maintenance and operation thereof.
MORGAN HILL will also share in 42 percent (42%) of whatever
revenues GILROY receives from the operation of the facility.
3. Purchase of Land
In addition, MORGAN HILL shall purchase from GILROY a 42
percent (42%) share of existing land and improvements utilized
for sewage treatment and disposal, and 42 percent (42%) of all
new land acquired for the new joint treatment plant and disposal
facility. Said land is illustrated on Exhibit "e" and does not
include the present treatment plant.
The price for purchase of the existing land shall be paid
by HORGAN HILL upon completion of the new joint treatment plant.
The other land shall be paid for on a progressive basis during
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the course of the project. The obligation of MORGAN HILL for
land purchase is illustrated as follows, although a portion of
the costs shown may be grant funded:
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Exist ing Land
47.2 acres at $7,500/acre x 0.42
Existing Levee and Improvements
$148,680
18,000
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New Treatment Plant Site
14.821 acres at $7,500/acre x 0.42
46,686
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New Percolation Pond
TOTAL ESTIMATED PURCHASE PRICE .
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124,425
$337,791
39.5 acres at $7,500/acre x 0.42
4. Sewer Advisory Committee
The new plant will be operated and administered by GILROY,
with recommending authority vested in a sewer advisory committee
to be composed of five (5) members to be appointed by and to
serve at the pleasure of the respective City Councils of the cities.
Each city shall be entitled to appoint one member to the committee
for each 20 percent (20%) interest or majority fraction thereof
in the capacity of the new plant. The committee shall have the
responsibility of recommending policy for the day-to-day operation
of the new plant, expansions, capital improvements, and the annual
budget of the total wastewater management facilities. Any four
members of the committee shall constitute a quorum for the conduct
of business at any meeting legally called and held. The committee
shall provide for dates upon which it shall hold regular meetings,
and special meetings may be called and held upon 24 hours advance
written notice to each committee member by the committee chairman
or any member thereof. The approving votes of at least three
members of the committee shall be required to recommend any
operational rule, regulation, or operational budget change. The
committee shall deliver a report of all actions taken at each
meeting to the Council of each city for approval prior to imp1e-
mentation. If one city objects to a recommendation of the committee,
the action shall not be implemented until the issue is resolved.
The Council of each city may refer to the committee any questions
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relating to changes in rules or regulations or to the general
management of the new plant.
It is the intention of the cities that all applications
for any sewage output from any single industrial or commercial
plant exceeding 50,000 gallons per day proposed to be treated by
the new plant shall be reviewed and recommended by a majority vote
of the committee; that the committee could recommend that the
producer of any such sewage output be required to provide pre-
treatment, at its own expense, of any effluent that the committee
determines will be injurious or over-burdening to the new plant.
5. Expansion
If the committee should recommend to each City Council
that additional capital outlays are required to provide more
capacity for the new plant or for any part of the sewer system
serving the cities, then upon concurrence of both City Councils,
each city will provide its proportionate share of each such capital
outlay. In the event that either city declines to or is unable
to provide its said share of any required capital outlay for a
period of one (1) year after demand therefor, such city's share
of the capacity of the new plant will not be increased after the
date of such demand until such city does provide its said share
of such capital outlay. In the event either city does not wish
to provide its share of any such capital outlay, the other city
will <have the option to increase the capacity of the new plant
and of the sewer system serving it to the extent required for its
own needs only and thereby increase to that extent its interest
in the new plant and said sewer system and its representatives
upon the committee. Both GILROY and MORGAN HILL shall have the
right to sell to the other any portion of their unused allocated
sewage treatment capacity in the new plant.
H. HOLD HARMLESS
Each city shall save the other harmless and indemnify its officers,
agents, and employees, from any and all claims, suits, and actions of any
kind whatever brought on account of injuries or damages sustained by any
person or property and arising out of or resulting from any negligent or
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wrongful act or omission by that city, its agents, officers or employees
in and during that city's performance in the operation of the present and
future wastewater management system under the terms of this Agreement.
I. GENERAL
1. All rental and operation cost payments required by this
Agreement shall be paid monthly, shall be delinquent 30 days
after receipt of appropriate itemized billing, and thereafter,
shall incur a five percent (5%) delinquency penalty and a twelve
percent (12%) per annum interest charge until paid.
2. The cities agree that neither city shall permit, without
consent of the other City Council, any connection to its sewer
system by, or provide any sewer service to, any area outside its
city limits as they then exist; except for any connection made
by GILROY to its independent industrial sewer facilities and
except for the area served by MORGAN HILL described in Exhibit "D"
attached hereto entitled "Holiday Lake Estates."
3. Each city agrees that it will not permit any connection to
be made to its sewer system that will result in any effluent
entering the joint facilities that does not meet the standards
set forth in Sections 19.99, 19.102, 19.104 and 19.105 of the
Gilroy City Code as they now exist or may hereafter be amended,
by agreement of both cities, that will be harmful to the sewage
treatment plant or its equipment or that will upset the balance
of the treatment processes.
4. In the event either city exceeds any allocated capacity in
the Agreement by 10,000 gallons per day, or more, dry weather
average dai:W flow, the city so exceeding its capacity shall pay
to the other city a cash penalty of $250.00 per day for each day
of excessing average daily flow determined on a weekly basis.
5. In addition to the penalties provided for herein, either city
shall have the right to obtain a restraining order, injunction,
damages or other proper relief, in any court of competent juris-
diction for any violation of this Agreement by the other city,
requiring that adequate steps be taken to stop such violations,
subject to such penalties as the court deems proper. The pre-
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vai1ing party shall be entitled to a reasonable attorney's fees
to be fixed by the court.
6. Any controversy or claim arising out of or relating to this
contract, or the breach thereof, may be settled at the request
of either city by arbitration in accordance with the then current
Rules of the American Arbitration Association, and judgment upon
the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. Costs of arbitration proceedings
shall be borne by the city against which the ruling is made.
7. GILROY operates industrial filter beds separate and apart
from its sewage collection system, the existing interceptor line
and the GILROY plant, and MORGAN HILL agrees that none of the
provisions of this Agreement shall affect, in any way, GILROY'S
freedom of action relating to the operation of said industrial
filter beds or in connection with any separate industrial waste
disposal program which GILROY or MORGAN HILL may undertake with
its portion of the inter-city boundary line.
8. Any facilities constructed by the cities pursuant to this
Agreement shall, upon termination of this Agreement, be jointly
owned by the cities in the proportion in which each contributed to
the cost of construction and completion thereof.
9. Each city shall establish and maintain such funds and accounts
and shall maintain such records in connection with the matters
covered by this Agreement as may be required by good accounting
or sound business practice. All books and records of each city
relating in any of the matters provided for in this Agreement
shall be open to inspection at all reasonable times by the other
city and its representatives.
10. Should any part, term or provision of this Agreement be decided
by the courts to be illegal or in conflict with any law of the
State, or otherwise be rendered unenforceable or ineffectual, the
validity of the remaining portions of provisions of this Agreement
shall not be affected thereby.
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11. This Agreement shall be binding upon and shall inure to the
benefit of the respective successors of the cities. Neither city
may assign any right or obligation hereunder without the consent
of the other.
12. This Agreement may be amended at any time by a written supple-
ment properly executed by both cities.
13. Upon proper execution of this agreement. the prior Agreement
of July 1, 1967, all all supplements thereto shall be rescinded
in full.
IN WITNESS WHEREOF. GILROY and MORGAN HILL have caused this
Agreement to be executed and attested by their proper officers thereunto
duly authorized and their official seals to be hereto affixed, as of the
day and year first above written.
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ATTEST:
CITY OF GILROY
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Mayor ~, ~J44
By
pUA~hl~
CITY OF MORGAN HILL
~tlcl~/
By
ATTEST:
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