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Resolution 1992-60 ~ . . , RESOLUTION NO. 92- 60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AUTHORIZING THE ASSIGNMENT BY THE CITY OF GILROY OF THAT CERTAIN CONTRACT BETWEEN THE CITIES OF GILROY AND MORGAN HILL AND OPERATIONS MANAGEMENT INTERNATIONAL, INC., AND AUTHORIZATION TO EXECUTE ASSIGNMENT OF CONTRACT WHEREAS, the City of Gilroy, a municipal corporation ("Gilroy"), and the City of Morgan Hill, a municipal corporation ("Morgan Hill") (Gilroy and Morgan Hill shall sometimes be referred to herein as the "Cities"), have formed the SOUTH COUNTY REGIONAL WASTEWATER AUTHORITY, a California Joint Exercise of Powers Authority organized and created pursuant to the laws of the State of California ("SCRWA"), for the purpose of jointly managing and running the sewage treatment facilities identified in the Joint Exercise of Powers Agreement Creating the South county Regional Wastewater Authority dated May 19, 1992; and WHEREAS, Gilroy and Morgan Hill entered into the following: That certain Agreement for Operations, Maintenance, and Management Services for the Waste Treatment Facilities for the cities of Gilroy and Morgan Hill between City and Operations Management International, Inc., a California corporation dated July 1, 1984, as amended by Amendment No. 1 dated May 1986, Amendment No. 2 dated June 16, 1987, Amendment No. 3 dated July 7, 1988, Amendment No.4 dated October 7, 1988, Amendment No.5 dated June 1989, Amendment No. 6 dated November 1989, Amendment No. 7 dated January 25, 1990, Amendment No. 8 dated June 19, 1990, and Amendment No.9 dated June 25, 1991 (the "Contract"); WHEREAS, Gilroy and Morgan Hill desire to assign to SCRWA all their respective rights, title, and interest under the contract, to the extent that the Contract relates to the municipal treatment and disposal facilities and reclamation facilities referred to in Appendix B of Amendment No. 9 of the Contract RESOLUTION NO. 92 - 60 -1- ~ . . referred to above (the "Facilities"), and SCRWA wishes to accept such assignment and assume all of Gilroy I s and Morgan Hill's obligations under the contract, to the extent that the Contract relates to the Facilities: and to evidence such assignment Gilroy wishes to execute an Assignment of Contract (the "Assignment of contract"). NOW, THEREFORE, BE IT RESOLVED THAT: 1. The form, terms and provisions of the Assignment of Contract have been presented to The City Council and reviewed by The City Council and the same are, in all respects, approved: 2. The City Administrator of Gilroy, Jay Baksa, is hereby authorized to execute and deliver, in the name of and on behalf of Gilroy, the Assignment of Contract in the form presented to The City Council. PASSED AND ADOPTED this 6th day of July , 1992, by the following vote: AYES: COUNCILMEMBERS: GILROY, HALE, KLOECKER, NELSON, ROWLISON, VALDEZ and GAGE. NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ATTES~~ b ~ . Susanne Steinmetz City Clerk RESOLUTION NO. 92 - 60 -2- . . . . . I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 92-60 is an original resolution, duly adopted by the Council of the City of Gilroy at an adjourned regular meeting of said Council held on the 6th day of July ,19~, 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 7th day of July ,1992. 'fI~~f:,~ Clerk of the City of Gilroy (Seal) ASSIGNMENT OF CONTRACT '. For value received, the City of Gilroy, a Municipal corpora- tion, and the city of Morgan Hill, a Municipal corporation (collectively "City") hereby grants, assigns, transfers, and conveys to the South County Regional Wastewater Authority, a California Joint Exercise of Powers Authority organized and created pursuant to the laws of the State of California ("Authority") all of its rights, title and interest and into the following: (i) That certain Agreement for Operations, Maintenance, and Management Services for the Waste Treatment Facilities for the cities of Gilroy and Morgan Hill between City and Operations Management International, Inc., a California corporation ("Contractor") dated July 1, 1984, as amended by Amendment No.1 dated May 1986, Amendment No.2 dated June 16, 1987, Amendment No.3 dated July 7, 1988, Amendment No.4 dated October 7, 1988, Amendment No.5 dated June 1989, Amendment No. 6 dated November 1989, Amendment No. 7 dated January 25, 1990, Amendment No. 8 dated June 19, 1990, and Amendment No. 9 dated June 25, 1991 (the "Contract"), to the extent that the Contract relates to the municipal treatment and disposal facilities and reclamation facilities referred to in Appendix B of Amendment No.9 referred to above (the "Facilities"). with respect to the foregoing, the parties agree as follows: L Authority agrees to (i) perform, keep and be bound by all of the terms, covenants and conditions contained in the Contract to the extent applicable to the Facilities and to be kept or perform on the part of City therein to the same extent and effect as if Authority had executed the Contract as the original party in \042\68817.1 23-070106943001 -1- place of City: and (ii) indemnify, defend and hold city harmless from any claim, loss or liability arising out of or in any way connected with a default by Authority under the Contract which shall occur on or after the Effective Date. 2. This Assignment of Contract ("Assignment") shall become effective upon the execution thereof by Assignor and Assignee and consent thereto by Contractor (the "Effective Date"). 3. This Assignment may be executed in counterparts, each of which shall be an original, but all of which shall constitute one instrument. 4. In any action between the parties arising out of this Assignment , the prevailing party shall be entitled to recover reasonable attorneys' fees actually incurred by such party in such action. 5. This Assignment constitutes the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior oral and written and all contemporaneous oral negotiations, commitments and understandings of the parties. 6. This Assignment may not be changed or amended except by a writing executed by both parties hereto. 7. This Assignment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 8. This Assignment shall be governed by and construed and enforced in accordance with the laws of the state of California. 9. No delay or failure by either party to exercise or enforce at any time any right or provision of this Assignment shall \042\68817.1 23.070106943001 -2- be considered a waiver thereof or of such party's right thereafter to exercise or enforce each and every right and provision of this Assignment. To be valid, a waiver shall be in writing, but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. 10. If any provision of this Assignment shall be held illegal, invalid or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid and enforceable, and the legality, validity and enforceability of all other provisions of this Assignment shall not be affected thereby. IN WITNESS WHEREOF, the parties hereto have executed this Assignment. on the dates set forth below to be effective as of the Effective Date. ASSIGNOR: Dated: CITY OF GILROY, :y~uniczr;;;''in ~ Its: CITY OF MORGAN HILL, a Municipal corporation Dated: By: Its: 1042\68817.1 23-070106943001 -3- ASSIGNEE: Dated: July 9, 1992 SOUTH COUNTY REGIONAL WASTEWATER AUTHORITY, a California Joint Exercise of Powers Authority organized and created pursuant to the laws of the State of California :::, ~~A~ CONTRACTOR'S CONSENT Contractor hereby consents and agrees to the terms of the above Assignment. From and after the date of the above Assignment becomes effective, Contractor agrees to look solely to Authority for the performance of the obligations assumed by Authority pursuant to the Assignment, and city shall thereafter be relieved and discharged of any and all liability arising under the Contract to the extent applicable to the Facilities whether occurring prior to or after the Effective Date. CONTRACTOR: Dated: OPERATIONS MANAGEMENT INTERNATIONAL, INC., a California corporation By: Its: , \042\68817.1 23-070106943001 -4- be considered a waiver thereof or of such party's right thereafter to exercise or enforce each and every right and provision of this Assignment. To be valid, a waiver shall be in writing, but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. 10. If any provision of this Assignment shall be held illegal, invalid or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid and enforceable, and the legality, validity and enforceability of all other provisions of this Assignment shall not be affected thereby. IN WITNESS WHEREOF, the parties hereto have executed this Assignment on the dates set forth below to be effective as of the Effective Date. ASSIGNOR: CITY OF GILROY, a Municipal corporation Dated: By: Its: CITY OF MORGAN HILL, a Municipal corporation Dated: By: Its: \042\68817 .1 23-070106943001 -3-