HomeMy WebLinkAbout07.d.2) Member McGill – California Special Districts Association – Consideration of proposed Chapter Affiliation Agreement.7.d.2�
Central Contra Costa Sanitary District
June 21, 2012
TO: HONORABLE MEMBERS OF THE BOARD
FROM: MICHAEL R. MCGILL, BOARD MEMBER /CCSDA REPR SENTATIVE
SUBJECT: CALIFORNIA SPECIAL DISTRICTS ASSOCIATION - PROPOSED
CHAPTER AFFILIATION AGREEMENT
Attached is a copy of the draft Chapter Affiliation Agreement proposed by the California
Special Districts Association (CSDA). Each member agency will be asked to vote on
the proposed agreement.
The next meeting of the Contra Costa Chapter of the CSDA is on July 16, 2012 and the
proposed agreement will be discussed and voted on at that meeting. With your
concurrence, I will share any of your comments to the membership at the meeting, and I
will cast the vote taking into account your comments and the Chapter's
recommendation.
CSDA/Chapter Affiliation Agreement
"The most effective way to adequately define the legal relationship between a parent and a chapter is to
develop a separate contract between the parent and each chapter, usually called an "affiliation agreement."
These agreements should be comprehensive and should allow the parent and the chapter to define all
significant aspects of their relationship, including the terms of the chapter's charter, appropriate and
permissible use of the parent's name and logo, parent activity in the chapter's geographical area, and
whether chapters are required to incorporate.
The agreement should also make it clear that the relationship between the parent and the chapter is not one
of principal and agent — that the granting of a charter to a chapter does not mean the chapter has been
given general authority to act on the parent's behalf."
Excerpt from The Legal Guide for Association Board Members, by James G. Seely
Purpose of affiliation
Enhances and expands the ability of each organization in carrying out its mission
• Advocate on behalf of special districts
• Educate special district board members and staff
• Share timely and relevant information
• Exchangeideas
• Raise public awareness of special districts
Purpose of formalized agreement
Clearly defines the relationship between CSDA and chapters
• Establishes each as a separate legal identity
• Limits liability to both parties
• Establishes insurance requirements
• Aligns bylaws
• Establishes membership requirements
• Facilitates communications and reporting
Benefits to Chapter
• Protection from liability
• Use of CSDA logo
• Use of CSDA database
• Recruitment assistance
• Technical assistance (chapter websites, listserv)
• Legislative staff /other CSDA rep at chapter meetings
• Additional training opportunities
• Promotion of chapter activities by CSDA
Benefits to CSDA
• Protection from liability
• Protection from opposing legislative positions
• Maintains integrity of CSDA brand and image
• Recruitment assistance
• Access to grassroots groups
• Potential volunteer base
• Promotion of CSDA activities by chapter
sn/1 2
ARTICLE VIII — LOCAL CHAPTERS
Section 1. Purpose:
The purpose of local chapters is to provide a local forum of members for the discussion,
consideration and interchange of ideas concerning matters relating to the purposes and powers
of special districts and the CSDA.
The local chapters may meet to discuss issues bearing upon special districts and the CSDA.
The chapters may make recommendations to the CSDA's Board of Directors.
Section 2. Organization:
The regular voting members of the CSDA are encouraged to create and establish local
chapters. Each of the following existing chapters must have at least one (1) CSDA member in
their membership at all times: Alameda, Butte, Contra Costa, Kern, Marin, Monterey, Orange
(ISDOC), Placer, Sacramento, San Bernardino, San Diego, San Luis Obispo, San Mateo, Santa
Barbara, Santa Clara and Ventura. These existing chapters are strongly encouraged to have all
district members as CSDA members, however the existing local chapter may include members
of local organizations, districts and professionals who are not members of the CSDA.
New chapters formed after August 1, 2011 are required to have 100 percent of their district
members as CSDA members in order to be a chapter affiliate of CSDA. The existing local
chapter may include members of local organizations and professionals who are not members of
CSDA.
Local chapters shall be determined to be affiliates of the CSDA upon approval and ratification by
the Board of Directors of the CSDA. The chapters shall be required to provide updated
membership lists to the CSDA at least annually.
CSDA and its local chapters shall not become or deem to be partners or joint ventures with
each other by reason of the provisions of these Bylaws.
Section 3. Rules, Regulations and Meetings:
Each local chapter shall adopt such rules and regulations, meeting place and times as the
membership of such local chapter may decide by majority vote. Rules and regulations of the
local chapter shall not be inconsistent with the Articles of Incorporation or Bylaws of the CSDA.
Section 4. Financing of Local Chapters:
No part of the CSDA's funds shall be used for the operation of the local chapter affiliates. The
CSDA is not responsible for the debts, obligations, acts or omissions of its local chapters.
Section 5. Legislative Program Participation:
Local chapters may function as a forum in regard to federal, state and local legislative issues.
The chapters may assist the CSDA in the distribution of information to their members.
Revised CSDA Bylaws 8 -2 -10 Page 20
CHAPTER AFFILIATION AGREEMENT
THIS AGREEMENT (the "Agreement ") is made this day of , 2011, by
and between California Special Districts Association, a 501(c)(6) California nonprofit corporation, with its
principal place of business at 1112 1 Street, Suite 200, Sacramento, CA 95814 ( "CSDA "), and
an unincorporated business association, with its principal place of business
at , CA (hereinafter "Chapter').
RECITALS
A. CSDA is a California nonprofit public benefit corporation representing different types of special
districts which provide a wide variety of public services to California communities. The purposes and
objectives of the CSDA are to advance the vital public interest in effective, efficient and responsive local
government, specifically by providing educational, legislative advocacy, financing, and insurance services to
California special districts;
B. Chapter desires to obtain the right to use CSDA's name, logo, membership mailing list,
endorsement, technical assistance and staff support and other CSDA Intellectual Property in connection with
Chapter's activities including conducting programs for the continuing education of special district officials and
employees, research projects on local special district issues of concern to Chapter's member special districts,
legislative outreach on legislative issues of importance to individual chapters and their members, and
supporting chapter outreach programs to educate the public about the operations of special districts within the
jurisdictional boundaries of the Chapter (hereinafter the "Chapter Program ");
C. CSDA is willing to provide its endorsement and technical support services to Chapter and
permit Chapter to use its name, logo, membership list and other Intellectual Property in connection with the
operation of the Chapter Program, on the terms and conditions specified in this Agreement.
D. The Boards of Directors of CSDA and Chapter hereby reaffirm that the relationship of CSDA
and Chapter to each other is that of Licensee and Licensor. This agreement is not intended by the parties to
create any association, joint venture, partnership, or agency relationship of any kind between CSDA and
Chapter. Neither CSDA nor Chapter is authorized to incur any liability, obligation or expense on behalf of the
other, to use the other's monetary credit in conducting any activities under this Agreement, or to represent that
CSDA is in the business of providing services comprising the Chapter Program, other than CSDA's
endorsement and technical support of the Chapter Program. It is the intent of both CSDA and Chapter that the
terms and conditions of this Agreement be interpreted to advance the stated intent of the parties to remain
autonomous organizations, each seeking to fulfill its respective stated mission and offer programs that
accomplish each party's business goals and objectives.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set
forth herein, the parties hereby agree as follows:
License of Intellectual Property.
A. Definition of Intellectual Property.
1. "Intellectual Property" of CSDA includes, but is not limited to use of its name
(to include both "California Special Districts Association" and the "CSDA" acronym), logo, and membership
mailing and electronic mail list with respect to past, current or prospective members of CSDA located within
Approved by CSDA Board of Directors 1/27/12
Chapter's geographic area; copyrighted, trademarked or proprietary information and materials prepared by
CSDA and provided by CSDA to Chapter pursuant to the provisions of this Agreement; and all other Intellectual
Property rights including the know -how, licenses, trade secrets, proprietary programs and processes of CSDA.
B. Limited License of Name Logo Membership Mailing List and Intellectual Property.
1. CSDA hereby grants a conditional, revocable, nonexclusive license to Chapter
to use its name, acronym, logo, membership mailing list, and other Intellectual Property in connection with
Chapter's operation of the Chapter Program. In addition, CSDA hereby agrees to provide its public
endorsement of the Chapter Program. Chapter hereby accepts the grant of such license and the endorsement
of its Chapter Program.
2. Chapter agrees that the license granted hereunder, the promotion and
endorsement of the Chapter Program, and the usage of CSDA's name, logo, membership mailing list, and
other Intellectual Property shall be restricted to the operation and promotion of the Chapter Program to existing
and potential members of the Chapter. Chapter further agrees to protect the name and goodwill of CSDA
throughout the term of this agreement.
3. Chapter agrees that it shall not use, or permit any person or entity other than
Chapter members to use, CSDA's name, logo, membership mailing list, and other Intellectual Property, for any
purpose without the prior written consent of CSDA. Chapter further agrees to keep CSDA's membership
mailing list in strict confidence and to not sell or disclose such mailing list or its contents to any third party in
any manner, except with the prior written consent of CSDA.
4. Upon termination or expiration of this Agreement, Chapter shall: (i)
immediately cease utilization of CSDA's name, logo, membership mailing list, and other Intellectual Property in
connection with the Chapter Program or for any other purpose; (ii) immediately return to CSDA all originals
and copies of CSDA's name, logo, membership mailing list, and other Intellectual Property (whether in printed,
electronic, recorded, or other tangible form); and (iii) discard or destroy all copies thereof.
C. Review and Approval. In order to protect the reputation and goodwill of CSDA,
Chapter shall provide CSDA with the right to review and pre- approve all uses of CSDA's name, logo,
membership mailing list, and other Intellectual Property or any portion thereof, by chapter and its member
districts and agents. Chapter shall submit to CSDA a copy of the intended use of CSDA's name, logo,
membership mailing list, and other Intellectual Property or proposed endorsement materials to CSDA. CSDA
shall have ten (10) days to approve or disapprove such use by the Chapter of the proposed materials. If CSDA
fails to respond within ten (10) days of receipt of such materials, their silence shall be deemed approval of the
Chapter's proposed use.
D. Conditions to Limited License of Intellectual Property.
This Limited License of Intellectual Property is granted by CSDA to Chapter subject to
satisfaction of each and all of the following conditions.
1. Chapter must provide copies of its bylaws to CSDA for review and approval for
consistency with the Articles of Incorporation and bylaws of CSDA. Receipt and approval of the Chapter's
bylaws CSDA is confirmed by execution of this Agreement. Chapter agrees to provide copies of all
amendments to the bylaws of the Chapter to CSDA during the term of this Agreement.
regarding Chapters.
2. Chapter agrees to comply with those requirements specified in CSDA bylaws
Approved by CSDA Board of Directors 1/27/12
3. Chapter shall comply with all federal, state and local laws, regulations and
ordinances.
4. Chapter will establish membership requirements that are based on guidelines
established by the CSDA bylaws.
5. Chapter agrees to appoint a Communications Liaison to facilitate
communication between Chapter and CSDA. The Communications Liaison shall be appointed by a member
district of the Chapter that is also an active CSDA member.
Description of Services.
CSDA shall provide the following services to Chapter pursuant to the terms and conditions of
this Agreement: (1) provide training and assistance in issues regarding governance and operations of the
Chapter and its member districts including but not limited to leadership training, district training certification,
and legislative updates. In addition, CSDA shall provide the Chapter access to services of its endorsed
business affiliates for supplemental services which may be of value to individual special district Chapter
members; (2) CSDA agrees to promote Chapter activities in its regular communications to all CSDA members.
Chapter agrees to provide the following services pursuant to the terms and conditions of this
Agreement: (1) conduct educational, outreach and other programs and activities the purposes of which do not
conflict with the stated purposes of CSDA; (2) agrees to periodically inform its members of CSDA programs,
activities, services and legislative alerts: (3) Chapter agrees to maintain regular communication with CSDA and
share general information of interest to both parties; and (4) Chapter agrees that it will not, during the term of
this Agreement, represent itself as a Chapter of CSDA and publish a legislative position or a position on a valid
initiative that is in opposition to one taken by CSDA. This representation does not preclude individual special
district members of the Chapter from taking their own respective positions on pending legislation and /or ballot
initiatives affecting special districts.
III. Confidential Information,
A. Both CSDA and Chapter may disclose certain confidential information and trade
secrets ( "Confidential Information ") concerning the operations of their respective businesses in connection with
entering into this Agreement and performing their obligations herein. Such Confidential Information includes,
but is not limited to the manner and terms under which services are provided or will be provided to their
respective members. Each party agrees, on behalf of itself and its members, and other persons to whom
disclosure of the Confidential Information is permitted hereunder, to keep confidential, and not use, disclose or
publish the Confidential Information other than as permitted under the terms of this Agreement.
B. Each party acknowledges and agrees that the Confidential Information of the other
parties is confidential and proprietary, and that any and all Confidential Information shall remain strictly
confidential among the parties, and shall not be disclosed, used or published except as specifically permitted
under the terms of this Agreement
C. The parties' obligations under this Article shall survive the termination of this
Agreement. In addition, upon termination or revocation of the license contemplated hereunder, or upon
expiration or earlier termination of this Agreement, all Confidential Information transmitted to the receiving
party.by the disclosing party and any copies thereof made by the receiving party will be destroyed or, at the
disclosing party's written request, promptly returned to the disclosing party.
IV Term and Termination. This Agreement shall be effective as of the date and year first above
written and shall remain in full force and effect until terminated at any time by either party, without cause, upon
Approved by CSDA Board of Directors 1/27/12
giving to the other party not less than sixty (60) working days' prior written notice of an election to terminate this
Agreement. Failure by Chapter to comply with the conditions for issuance of the limited license specified in
Section _ hereof may lead to suspension or revocation of this license by CSDA. Upon termination of this
Agreement, the license granted hereby shall be deemed to have been revoked by CSDA.
V. Indemnification and Insurance.
A. Indemnification.
1. Except as otherwise provided in this Agreement, each party shall indemnify,
defend, and hold harmless the other party, and its governing board, officers, employees, agents and
representatives, from and against any and all liabilities, obligations, losses, damages, penalties, fines, claims,
actions, suits, costs and expenses, (including legal fees and expenses) of any kind whatsoever, asserted
against, incurred or suffered by the other party, or its governing board, officers, employees, agents or
representatives, by reason of personal injury or property damage resulting in any way from: (a) any negligent
or intentional act by it or any of its officers, employees, agents or representatives in the performance of
services or obligations hereunder; or (b) any negligent omission or failure to act when under a duty to act on its
part or the part of any of its officers, employees, agents or representatives in the performance of services or
obligations hereunder.
B. Insurance. In order to assure the indemnity described in this Section both CSDA and
Chapter shall, at its sole expense, carry and keep in full force and effect at all times during the Term of this
Agreement a liability insurance policy with a single limit of at least 1 million dollars ($1,000,000) to cover
potential liability to third parties arising from the operation of the Chapter Program. Each party shall name the
other party as an additional insured on such insurance policy, and such insurance policy shall contain a
provision by which the insurer agrees that such policy shall not be cancelled except after thirty (30) days written
notice to Association. Each party shall provide to the other, within thirty (30) days of the commencement of the
initial Term of this Agreement, a copy of the certificate evidencing such insurance policy. The indemnification
under this Agreement shall in no way be limited by the extent of insurance coverage. The provisions of this
Section shall survive any termination or expiration of this Agreement.
1. As an alternative to providing an insurance policy pursuant to Section V.B.,
Chapter may assure the indemnity obligations specified in Section V.A. by providing a written certificate from
each member district of Chapter certifying that all employees of such Chapter member district participating in
Chapter activities as part of the Chapter Program, are acting within the course and scope of their duties for the
individual Chapter member, and that the individual Chapter member's insurance policies provide general
liability coverage for all such member district employees participating in Chapter activities.
VI. MEDIATION.
(a). The Parties agree to mediate any dispute or claim arising between them out of this
Agreement, or any resulting transaction, before resorting to arbitration or court action. Mediation fees, if any,
shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies,
any party commences an action without first attempting to resolve the matter through mediation, or refuses to
mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if
they would otherwise be available to the party in any such action.
VII. Warranties. Each party covenants, warrants and represents that it shall comply with all laws
and regulations applicable to this Agreement, and that it shall exercise due care and act in good faith at all
times in performance of its obligations under this Agreement. The provisions of this Section shall survive any
termination or expiration of this Agreement.
Approved by CSDA Board of Directors 1/27/12
VIII. Waiver. Either party's waiver of, or failure to exercise, any right provided for in this Agreement
shall not be deemed a waiver of any further or future right under this Agreement.
IX. Governing Law. All questions with respect to the construction, performance and enforcement
of this Agreement, and the rights and liabilities of the parties hereunder, shall be determined in accordance with
the laws of the State of California. Any legal action taken or to be taken by either party regarding this
Agreement or the rights and liabilities of parties hereunder shall be brought only before a federal, state or local
court of competent jurisdiction located within the State of California. Each party hereby consents to, and
agrees not to contest, the jurisdiction of the federal, state and local courts located within the State of California.
X. Headings. The headings of the various paragraphs hereof are intended solely for the
convenience of reference and are not intended for any purpose whatsoever to explain, modify or place any
construction upon any of the provisions of this Agreement.
XI. Assignment. This Agreement may not be assigned, or the rights granted hereunder transferred
or sub - licensed, by either party without the express prior written consent of the other party.
XII. Heirs, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of each party, its subsidiaries, affiliates, related entities, partners, agents, officers, directors, employees, heirs,
successors, and assigns, without regard to whether it is expressly acknowledged in any instrument of
succession or assignment.
XIII. Counterparts. This Agreement may be executed in one (1) or more counterparts, each of
which shall be deemed an original and all of which taken together shall constitute one (1) and the same
instrument.
XIV. Entire Agreement. This Agreement: (i) constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof; (ii) supersedes and replaces all prior agreements, oral and
written, between the parties relating to the subject matter hereof; and (iii) may be amended only by a written
instrument clearly setting forth the amendment(s) and executed by both parties.
XV. Independent Agreement. This Agreement is an independent agreement which is not in any
way contingent upon or related to any other contractual obligations of the parties. The royalties and price
discounts provided by Company herein are solely in consideration for the license of Association's name, logo
and membership mailing list.
XVI. Severability. All provisions of this Agreement are severable. If any provision or portion hereof
is determined to be unenforceable in arbitration or by a court of competent jurisdiction, then the remaining
portion of the Agreement shall remain in full effect.
XVII. Notice. All notices and demands of any kind or nature that either party to this Agreement may
be required or may desire to serve upon the other in connection with this Agreement shall be in writing and may
be served personally, by certified mail, or by commercial overnight courier e c ., Federal Express), with
constructive receipt deemed to have occurred 3 calendar days after the mailing or sending of such notice, to
the following addresses:
If to CSDA: California Special Districts Association
1112 1 Street, Suite 200
Sacramento, CA 95814
Attn.: Neil McCormick, Executive Director
If to Chapter:
Approved by CSDA Board of Directors 1/27/12
* IN WITNESS WHEREOF, the parties hereto have caused duplicate originals of this
Agreement to be executed by their respective duly authorized representatives as of the date and year first
above written.
California Special Districts Association
Contact: Neil McCormick, Executive Director
1112 1 Street, Suite 200
Sacramento, CA 95814
T — 916.442.7887
By:
By:
Neil McCormick
Executive Director
Date:
Date:
Approved by CSDA Board of Directors 1/27/12