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HomeMy WebLinkAboutUkiah Valley Sanitation District 1995-07-19; Amendment 1 1999-03-24 Active7,7- ,e:), ,/ v 50 - /92 Amendment No. 1 to the Participation Agreement between The City of Ukiah and the Ukiah Valley Sanitation District 15reemed ,t)o. This Amendment No. 1 amends the Participation Agreement between the City of Ukiah and the Ukiah Valley Sanitation District dated July 19, 1995 to reflect the following changes: Paragraph 1 shall read as follows: The annual costs for treatment, including maintenance, operation, administration, repair and replacement, expansion, upgrading, debt service, insurance and financial services of the entire sewer system (treatment plant, trunk sewer and collection system) shall be apportioned between the CITY and DISTRICT each year based upon the ratio of CITY to DISTRICT sewer service units for each year of operation. Expense categories not included in a approved budget prior to the 1997/98 fiscal year must be authorized by a separate written agreement approved by both the CITY and DISTRICT, such an agreement shall be required if any expense (1) is a capital expenditure in excess of $100,000, other than for repair or replacement of existing facilities or equipment, or (2) involves a charge that can be lawfully imposed in either the City or the unincorporated area but not in both the City and the unincorporated area. For the purpose of this agreement, one sewer unit is defined as being a single unit of sewer discharge having characteristics of flow, B.O.D. and suspended solids equivalent to that generated and discharged by a typical single family residential unit. CITY shall be the paying and receiving agent for all DISTRICT operation and maintenance funds. Cost apportionment between CITY and DISTRICT as described above shall be adjusted annually at the beginning of each fiscal year of operation based upon the ratio of CITY to DISTRICT equivalent sewer service units on record as of March 31 each year. Paragraph 6 shall read as follows: To carry out the purpose of this Agreement, the Board of Directors of the District and the City Council of the City of Ukiah shall meet together at such times and places as they shall agree, but in any event at least once a year, prior to the commencement of the fiscal year (July 1 - June 30) for, among other purposes, approval of the annual budget for the sewer system operations. 6.1 The CITY shall prepare the proposed budget for the sewer system which must receive approval from both the City Council and the Ukiah Valley Sanitation District Board of Directors. 6.2 If the City Council and the Board of Directors fail to agree on any item or items in the proposed budget, they shall appoint a committee consisting of one representative from each body to review the disputed items and make a recommendation for approval by both bodies. If the City Council and Ukiah Valley Sanitation District Board fail to reach agreement on one or more of the disputed items within a period of sixty days (60) from the date of the their joint meeting ( "disputed budget item(s)"), the dispute shall be resolved as provided in subsection 6.3. 6.3 Disputed budget item(s) shall be resolved as follows: 6.3.1 The disputed item(s) shall be excluded from the budget or included under conditions acceptable to both parties until the dispute is resolved as provided herein. 6.3.2 Either the City Council or the Ukiah Valley Sanitation District Board of Directors may request resolution as provided in this subparagraph 6.3, if the parties have failed to reach agreement on a disputed budget item as provided in subparagraph 6.2, by providing the other party with a Notice of Dispute Resolution. Said Notice shall identify the Disputed Budget Item or Items which is to be submitted for resolution, the proposed remedy of the dispute, and the name, address, and phone number of the party's nominee to the Disputed Resolution Hearing Panel. 6.3.3 Within ten (10) days of receiving notice initiating dispute resolution, the party receiving notice shall submit the name, address, and phone number of its nominee of the Hearing Panel to the other party. Within ten (10) days thereafter, the two nominees shall meet and /or consult and select a third panel member, which shall complete the formation of the Hearing Panel. Each party and its nominee shall endeavor to appoint members of the Panel who have expertise in the subject matter of the dispute. Within ten (10) days of the Notice of Dispute Resolution, the parties may agree to a single arbitrator as a Tess costly alternative to the Hearing Panel. All references to the Hearing Panel shall include a single arbitrator, if the parties so agree. 6.3.4 The Hearing Panel shall establish such rules of procedure as it deems necessary to resolve the dispute provided that such rules must provide for a hearing at which each party may be represented by legal counsel and at which each party is entitled to present written and oral evidence and legal argument in support of its position. The Panel must hold the hearing and issue its written decision within forty -five (45) days from the date the third panel member is selected and agrees in writing to serve on the Panel. The decision of the Hearing Panel shall be reported to the parties who, within thirty (30) days of the date notice of the decision is given, must each meet and vote to accept or reject the decision. 6.3.5 Each party must act in good faith in considering the decision and should accept the decision unless the decision is contrary to law, clearly erroneous or in direct conflict with written ordinances or policies adopted by the party before the dispute arose. The decision shall be deemed approved by a party, unless within thirty (30) days of the date notice of the decision is given to a party, that party notifies the other party that it has rejected the decision. If either party rejects the Hearing Panel's decision, the disputed budget item shall be deemed disapproved and excluded from the budget. If the Hearing Panel recommends approval of a disputed budget item on conditions acceptable to the CITY and the DISTRICT rejects the decision, the CITY shall have the right to terminate this agreement by giving the DISTRICT one hundred eighty (180) days prior written notice of said termination; provided it provides that notice within sixty (60) days of the date the DISTRICT gives notice that it rejected the decision of the Hearing Panel. This Amendment No.1 is made this ild/fit day of -A , 1999, and the parties hereto have set their signatures below. CITY OF UKIAH B �\ Jim •/ 1 aston, Mayor CITY CLERK CLERK OF THE BOARD G%