Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 22, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Lorena Zarate, Finance Manager
SUBJECT: Resolution to Approve the Agreement for Contract Administrative Services with the Central Coast Blue Regional Recycled Water Authority
RECOMMENDATION
Adopt a Resolution approving the agreement for contract administrative services between the Central Coast Blue Regional Recycled Water Authority and the City of Grover Beach to appoint a Treasurer/Controller, and provide certain accounting, financial and information technology services.
BACKGROUND
The Joint Exercise of Power Agreement (“Agreement”) created by the City Councils of the Cities of Arroyo Grande, Grover Beach, and Pismo Beach established the Central Coast Blue Regional Recycled Water Authority (“Authority”) and provided specific provisions for appointment of a Treasurer/Controller for the Authority to enter agreements and secure services necessary for Authority business. The Authority has a need for certain accounting, financial, and information technology services. The JPA Agreement provides that such services may be provided by a Member Agency pursuant to a written agreement.
On April 17th, 2023, the Board of Directors for the Authority held a special meeting, in which the Board appointed a Treasurer/Controller and approved the proposed agreement with City of Grover Beach for administrative services. The appointed Treasurer/Controller is the Finance Manager for the City of Grover Beach and the services to be provided by the City are included in the scope of services of the proposed agreement (See Exhibit A of Attachment 2). The proposed agreement is modeled after a similar agreement between the City of Arroyo Grande and the Five Cities Fire Authority. The City of Arroyo Grande currently provides personnel, finance, accounting, and information technology services for the Five Cities Fire Authority.
FISCAL IMPACT
The Authority shall compensate the City of Grover Beach for the administrative services provided in an amount equal to the direct costs incurred by the City of Grover Beach in providing the services. Direct costs shall consist of salary and benefit costs for time dedicated exclusively by employees in performing services for the JPA. No overhead costs shall be charged. This compensation would reduce the City’s proportionate share of the JPA’s operating expenses.
Staff Report: Administrative Services Agreement with Central Coast Blue Authority Page 2 May 22, 2023
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a Resolution approving the agreement for appointment of Treasurer/Controller and contract administrative services between the Central Coast Blue Regional Recycled Water Authority and the City of Grover Beach; or
2. Provide alternative direction to staff
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
2. Proposed Agreement
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, APPROVING AN AGREEMENT FOR APPOINTMENT OF A
TREASURER/CONTROLLER AND CONTRACT ADMINISTRATIVE SERVICES
WITH THE CENTRAL COAST BLUE REGIONAL RECYCLED WATER
AUTHORITY
WHEREAS, the Joint Exercise of Power Agreement created by the cities of Arroyo Grande, Grover Beach, and Pismo Beach established the Central Coast Blue Regional Recycled Water Authority; and
WHEREAS, the Central Coast Blue Regional Recycled Water Authority has a need for accounting, financial, and information technology services and the Joint Exercise of Power Agreement provides that such services may be provided by a member agency pursuant to a written agreement; and
WHEREAS, the City of Grover Beach has qualified personnel that can provide such services of Treasurer/Controller, financial services, and information technology; and WHEREAS, the Board of Directors for the Central Coast Blue Regional Recycled Water Authority approved the proposed agreement for contract administrative services with the City of Grover Beach and appointed a City of Grover Beach employee as Treasurer/Controller on April 17th, 2023.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby approves the agreement for contract administrative services with the Central Coast Blue Regional Recycled Water Authority.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 22nd day of May 2023.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
**DRAFT**
AGREEMENT FOR CONTRACT ADMINISTRATION SERVICES
This Agreement for Contract Administration Services ("Agreement") is entered into by and between the City of Grover Beach, a municipal corporation ("Grover Beach"), and the Central Coast Blue Regional Recycled Water Authority, a California joint powers authority ("Authority").
Grover Beach and JPA are sometimes referred to herein, collectively or individually as "Parties" or "Party".
WHEREAS, the cities of Arroyo Grande, Grover Beach and Pismo Beach created the Authority pursuant to Government Code §§ 6500 et seq. by executing a Joint Exercise of Powers Agreement (the "JPA Agreement") for the purpose to create the Authority, provide for the administration of the Authority and to enable the Authority to: (1) take all actions necessary to operate, and maintain Phases 1 and 2 of the Project. Phase 1 includes construction of an ATF, treatment of all secondary treated flows from Pismo Beach’s WWTP, construction of approximately five injection wells and associated transmission lines, and injection of flows from the WWTP; and (2) pursue grant funding and financing options for the Project and future projects; and (3) collectively interact with regulatory agencies with oversight over the Parties and the Project; and
WHEREAS, pursuant to Article 4 Officers and Employee of the Authority, the Authority’s Treasurer and Auditor Controller shall be the Manager’s senior financial officer and the two offices may be held by separate individuals, or combined and held by one individual as the Board may elect; and
WHEREAS, additionally, the Authority has a need for accounting, financial, and information technology services, and the JPA Agreement provides that such services may be provided by a Member Agency pursuant to a written agreement; and
WHEREAS, Grover Beach has qualified personnel that can provide such services of Treasurer/ Controller, financial services, and information technology under contract with the Authority; and WHEREAS, Grover Beach and the Authority desire to enter into this Agreement in order to set forth the terms and conditions of Grover Beach providing such services to the Authority.
NOW THEREFORE in consideration of the mutual promises and covenants contained herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. Grover Beach will, under the terms and conditions of this Agreement, provide the Authority with financial, accounting and information technology services (the "Services"), as more specifically described in Exhibit "A" entitled "Scope of Services," attached hereto and incorporated herein by this reference.
2. The JPA Board of Directors appoints the City of Grover Beach Finance Manager to serve in the capacity of Treasurer/Controller for the Authority. Pursuant to the JPA Agreement and Government Code § 6505.1, and based upon such designation, the Treasurer/Controller shall file an official bond in an amount of $5,000.
3. Subject to Section 4 hereof, the Authority shall compensate Grover Beach for such services in the amount equal to the direct costs incurred by Grover Beach in providing the Services.
Attachment 2
Direct costs shall consist of salary and benefit costs for time dedicated exclusively by employees in performing services for the JPA. No overhead costs shall be charged.
4. Grover Beach shall, on a quarterly basis, deduct the costs of providing the Services from its proportionate share due under Article 6 of the JPA Agreement.
5. The term of this Agreement shall coincide with the term set forth in Section 1.4 of the JPA Agreement but can be terminated with or without cause by either Party upon sixty (60) days prior written notice. In the event of such termination, Grover Beach shall be entitled to deduct the cost of providing the services, as set forth in Section 4 hereof, through the date of termination.
6. MISCELLANEOUS
6.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and arrangements, both oral and written, between the Parties hereto with respect to such subject matter. Nothing in this Agreement shall be deemed to modify the terms and conditions set forth in the JPA Agreement. Except as otherwise provided herein, this Agreement may not be modified, amended, altered or rescinded in any manner, except by written instrument signed by both of the Parties. The waiver by either Party of a breach or compliance with any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or compliance.
6.2 Assignment. A Party may not assign this Agreement without the prior written consent of the other Party.
6.3 Notices. Unless otherwise specified herein, any notices or other communications required or permitted hereunder shall be given in writing and be delivered personally or sent by facsimile transmission, internationally recognized overnight courier, registered or certified mail (postage prepaid with return receipt requested) as follows:
To Grover Beach: City of Grover Beach
Attn: City Clerk 154 S. 8th Street
Grover Beach CA 93433
To Authority: Central Coast Blue Regional Recycled Water Authority Attn: Geoff English, General Manager
177 S. 8th Street
Grover Beach CA 93433
Such notices or other communications shall be deemed received (i) on the date delivered, if delivered personally, (ii) on the date that return confirmation is received by sender, if sent by facsimile or (iii) five (5) days after being sent, if sent by first class registered mail, return receipt requested.
6.4 Relationship of the Parties. Nothing in this Agreement, or in the course of dealing between the Parties pursuant to this Agreement, shall be deemed to create between the Parties (including their respective officers, employees and agents) in connection with the subject matter herein, a partnership, joint venture, association, employment relationship or any other relationship, other than that of independent contractors with respect to each other. Neither Party shall have the authority to commit or legally bind the other Party in any manner whatsoever, including but not limited to, the acceptance or making of any agreement, representation or warranty.
6.5 No Third Party Beneficiaries. This Agreement inures to the benefit of the Parties only and no third party shall have any rights hereunder.
6.6 Severability. If any provision of this Agreement is held invalid or unenforceable, such provision shall be deemed deleted from this Agreement and shall be replaced by a valid and enforceable provision which so far as possible achieves the same objectives as the severed provision was intended to achieve, and the remaining provisions of this Agreement shall continue in full force and effect.
6.7 Survival. Any provision of this Agreement which contemplates performance or observance subsequent to any termination or expiration of this Agreement shall survive any termination or expiration of this Agreement and continue in full force and effect.
6.8 Headings. The section headings used herein are for reference and convenience only and shall not enter into the interpretation hereof.
6.9 Venue: Any dispute under this Agreement shall be resolved under the laws of the State of California and venued in San Luis Obispo County.
7. Indemnification: The Authority shall indemnify, defend and hold harmless Grover Beach, and its elected officials, members, officers, directors, employees and agents from and against any and all liability, loss, damages, expenses, costs (including, without limitations, costs and fees of litigation or arbitration) of every nature, arising out of any act or omission related to this Agreement, including, but not limited to those related to the use of any property and/or facility of the Authority. The Authority's duty to indemnify Grover Beach pursuant to this Agreement shall survive Grover Beach’s withdrawal from the Agency or termination of this Agreement.
IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement effective on the date signed by the last of all Parties hereto.
Central Coast Blue Regional Recycled City of Grover Beach:
Water Authority
By: -------------------------------------------------- - Ed Waage, Chairperson
Date:_______________________________
By: --------------------------------------------------- - Name: Karen Bright, Mayor
Date: ______________________________
Exhibit A
SCOPE OF SERVICES
The Scope of Services to be provided by the City of Grover Beach to the Central Coast Blue Regional Recycled Water Authority includes, but is not limited to, the following tasks within these categories of services:
1. Accounts Payable Services
a. Process vendor invoices for payment
b. Print and distribute weekly payments to vendors
c. Generate and reconcile invoice and payment reports
d. Distribute quarterly expenditure reports for budget reconciliations. e. Prepare and distribute annual form 1099’s.
2. General Accounting Services
a. Verify Accounts Payable data entry to ensure accuracy of information b. Verify and enter into the general ledger accounts any budget adjustments and miscellaneous monthly journal entries to insure accuracy of account balances
c. Provide monthly bank reconciliation
d. Prepare quarterly budget status reports to the Authority Board of Directors. e. Coordinate annual audit services with separately secured auditor f. Prepare and submit all other necessary annual financial reporting requirements for the Authority
3. Information Technology
a. Network management, including design, installation and configuration b. Provide assistance with installation, configuration and modifications of software on Authority workstations.
c. Coordinate maintenance of the phone system, including voice mail d. Desktop support
e. Provide Internet access and network support