HomeMy WebLinkAbout20. 19-632
DECEMBER 10, 2019 19-632 RESOLUTION
(CARRIED____7-0____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE RENEWAL OF AGREEMENT WITH THE TOWN OF
ALGOMA SANITARY DISTRICT NO. 1
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
WHEREAS, the City of Oshkosh and the Town of Algoma Sanitary District No. 1
(District) are parties to an Agreement in Principal providing for the treatment of sewage
generated from the District; and
WHEREAS, this Agreement is in need of comprehensive review; and
WHEREAS, it is advisable to enter into a one (1) year extension of this Agreement
to allow the parties sufficient time to review the existing agreement and to develop a new
master agreement.
BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper
City officials are hereby authorized to enter into and take those steps necessary to enter
into a one (1) year renewal of the agreement with Town of Algoma Sanitary District No.
1 for continued treatment of sewage generated from the District.
City
of
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the Co o Council
FROM: James Rabe, Director of Public Works
DATE: December 5, 2019
RE: Approve Renewal of Agreement with the Town of Algoma Sanitary District No.1
BACKGROUND
In June 1973, the City of Oshkosh (City) and the Town of Algoma Sanitary District No. 1(District)
entered into an Agreement in Principal providing for the treatment of sewage generated from the
District. That agreement was renewed until December 1977, when the City and the District
entered into an agreement (1977 Agreement) regarding the treatment of sanitary sewerage
generated from the District. The 1977 Agreement replaced the previous Agreement in Principal.
The 1977 Agreement had an initial term of thirty (30) years. The 1977 Agreement has
subsequently been extended multiple times, and another extension is necessary. It is still most
cost effective for everyone involved to continue the agreement with the District and have
wastewater treated at the City of Oshkosh Wastewater Treatment Plant.
The terminology and methodology of the 1977 Agreement have been unchanged since the
execution of that Agreement. The regulatory environment that we are currently in is very
different from the environment that existed when this Agreement was executed. The City plans
to review all township sanitary district agreements and create an updated master agreement that
incorporates more modern terminology and practices, as well as building on what the districts
and the City have found works well over the past several decades of operation.
ANALYSIS
The Department of Public Works has reviewed this renewal with the City Attorney's Office and
the Finance Department. During those review discussions, we believe that a shorter extension is
the best course of action to pursue at this time. Since this agreement is over forty (40) years old,
we believe a more thorough review of the terms and conditions, as well as the financial
responsibilities associated with the 1977 Agreement, are necessary. The regulatory climate is
currently very different than it was forty (40) years ago, and we feel it is important to ensure the
terms of our agreements are consistent with current regulatory requirements, and are able to
adapt to the changing regulatory world we are experiencing.
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The City is taking a careful look at all of our agreements with our neighboring township sanitary
districts, and has found that all agreements are coming up for renewal in the next couple years.
Since these agreements were all created and entered into several decades ago, prior to the City
and the towns having experience with sanitary districts, the City is in the process of completing
a comprehensive review of all the agreements. The City plans to develop a new master
agreement, incorporating more modern terminology and practices, as well as building on what
the districts and the City have found works well over the past several decades of operation.
FISCAL IMPACT
The 1977 Agreement provides formulas for calculating the charges from the City of Oshkosh to
the District. Extending the 1977 Agreement will continue to utilize those formulas for charging
the District.
RECOMMENDATION
I recommend extending the 1977 Agreement with the District for one (1) year, allowing staff time
to develop a new master agreement.
Approved,
Mark A. Rohloff
City Manager
JER/tlt
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