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Home My WebLink AboutCNOA - Central Net Operations Authority - 2010-05-03Council/Agency Meeting Held:_" a O C� Deferred/Continued to: 'AAp rov d ❑ onditionally A roved ❑ Denied D C�t le ' Signs re Council Meeting Date: May 3, 2010 Department ID Number: FD 10 008 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Patrick McIntosh, Fire Chief SUBJECT: Approve Agreement with the Central Net Operations Authority for Repayment of Loan Statement of Issue: The Fire Department is requesting approval of the attached agreement with the Central Net Operations Authority for repayment of a loan of $50,000 made during FY 2008/09 as a Fire Department budget reduction. Financial Impact: Not applicable at this time. Recommended Action: Motion to: Approve and authorize the Mayor and City Clerk to execute the "Agreement with the Central Net Operations Authority for Repayment of Loan" in the amount of $50,000. Alternative Action(s): Do not approve the attached agreement and direct staff accordingly. -51 a Item 4. m Page 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 5/3/2010 DEPARTMENT ID NUMBER: FD 008 Analysis: For the past eighteen (18) years, the Central Net Operations Authority (CNOA) has provided training regarding fire and emergency medical response, rescue operations, mandatory state and federal classes and related topics for the cities of Huntington Beach and Fountain Valley. This Joint Powers Authority does so at an annual cost to the Fire Department of $202,678. Due to the difficult economic climate and reduced city revenues during FY 2008/09, in July 2009, city staff proposed reducing its payment to CNOA by $50,000. This funding was deleted from the Fire Department operating budget in September 2009. Subsequently, on February 25, 2010, the CNOA Board agreed to treat the reduction as a loan which will be paid back when the city's economic condition improves. The attached agreement delineates this arrangement and includes a five (5) year period for repayment with no interest charge or specified repayment schedule other than the five (5) year term. It also stipulates that there will be no delay or reduction in training provided by CNOA to the City of Huntington Beach during the term of the agreement. Environmental Status: None. Strategic Plan Goal: Maintain and Enhance Public Safety Attachment(s): Item 4. a Page 2 -52- ATTACHMENT # .7 AGREEMENT WITH -CENTRAL NET OPERATIONS AUTHORITY FOR REPAYMENT OF LOAN This Agreement is made and entered into as of this day of , 20 P by and between the CITY OF HUNTINGTON BEACH, a municipal corporation ("CITY"), and CENTRAL NET OPERATIONS AUTHORITY ("CNOA"), a Joint Powers Agency, and is made with reference to the following: RECITALS A. CITY is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of CITY. B. CNOA is a Joint Powers Agency existing under the laws of the State of California. C. CNOA provides training concerning fire response, emergency medical response, rescue operations and related topics to CITY and others. D. CITY contributes money to CNOA for its services. E. Due to the economic climate and reduced operating revenues, CITY is required to reduce its expenditures and has reduced its economic commitment to CNOA by $50,000.00. The CNOA board has agreed to treat this reduction as a loan which will be paid back when the economic climate improves. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 10-2451/44639 1 1. CNOA agrees to accept and treat CITY's reduced economic contribution of $50,000.00 as a loan to CITY. CITY agrees to repay the agreed -upon loan amount within five years of the date of this Agreement, or sooner if conditions permit. 2. There shall be no interest charged on the loan amount at any time. 3. There will be no delay or reduction in training provided by CNOA to CITY during the term of this Agreement. 4. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties, and all preliminary negotiations and agreements of whatever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 5. This Agreement may be modified or amended only b a written document executed by both CITY and CNOA. 6. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 7. The laws of the State of California shall govern this agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 8. The terms of this Agreement shall be constituted in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 10-2451/44639 2 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. CENTRAL NET OPERATIONS AUTHORITY, CITY OF HUNTINGTON BEACH, a Joint Powers Agency a municipal corporation of the State of California By: �� /I � ( � �� ayor print name ITS: (circle one) ai resident/Vice President APPROVED AS TO FORM: NO By: ( &' r %vim✓ t,A/J,e�Y wEi2NE2 print name ITS: (circle o Secretary/ hief Financial Officer/Asst. Secretary — Trea 10-2451/44639 - ity Attorney b1.0 .kk\�,q y,' tU City of Huntington Beach 2000 Main Street • Huntington Beach, CA 92648 OFFICE OF THE CITY CLERK JOAN L. FLYNN CITY CLERK May 6, 2010 Laney Werner Central Net Operations Authority 18301 Gothard Street Huntington Beach, CA 92408 Dear Ms. Werner: The City Council of the City of Huntington Beach at the meeting held May 3, 2010, approved execution of the "Agreement with Central Net Operations Authority for Repayment of Loan" for a $50,000 loan. Enclosed is a duly executed duplicate original of the agreement for your records. Sincerely, toanL. Flynn, CIVIC City Clerk Enclosure: Agreement JF:pe Sister Cities: Anjo, Japan O Waitakere, New Zealand ( Telephone: 714-536-5227 ) Esparza, patty From: Justen, Kevin Sent: Wednesday, May 05, 2010 7:33 AM To: Esparza, Patty Subject: RE: CNOA Agreement ;Ghe Board Secretary Laney Werner Central Net Operations Authority 18301 Gothard Street Huntington Beach, CA 92648 Thanks for your help with this. Kevin Justen Huntington Leach Dire Department (714) 536-5235 Save A Tree - please consider the environment before printing this message. From: Esparza, Patty Sent: Tuesday, May 04, 2010 4:47 PM To: Justen, Kevin Subject: CNOA Agreement Hi Kevin — I have the above agreement executed that was approved by council last night. Since there were two originals, I assume CNOA wants the other original sent to them. Could you send me the name of the contact person and the address I should send it to, or did you want it back to send to them? Thanks for your help! Patty Esparza, CHC Senior Deputy City Clerk City of Huntington Beach 714-536-5260 please think of trees before you print