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HomeMy WebLinkAbout04. 20-466 DECEMBER 8, 2020 20-466 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE RENEWAL OF WASTEWATER TREATMENT AGREEMENT WITH THE TOWN OF ALGOMA SANITARY DISTRICT NO. 1 INITIATED BY: DEPARTMENT OF PUBLIC WORKS WHEREAS,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 a one (1) year renewal of the agreement with Town of Algoma Sanitary District No. 1 for continue treatment of sewage generated from the District. Citye Oshkosh MEMORANDUM TO: Honorable Mayor and Members of the Co r�xo Council FROM: James Rabe, Director of Public Works DATE: December 3, 2020 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 is in the process of reviewing all township sanitary district agreements and creating 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. I �M Me„ -oter� I owaship AgreeineeIs\ r:xt or ww Treat nem Agreement-AIFon,o so vl Page 1 of 2 Mema 12320-docx 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 short 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. 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 modem 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 L\ Wastewa ler\ Township Agreements\ Ext or W W Treatment Agreement Algoma SD 71 Page 2 of 2 Mrmn_12a-20.no,s EXTENSION TO INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF OSHKOSH AND THE TOWN OF ALGOMA SANITARY DISTRICT #1 Extension to Intergovernmental Agreement ("Agreement") between the Town of Algoma Sanitary District #1, a town sanitary district ("District") and the City of Oshkosh, Wisconsin, a Wisconsin municipality ("City"). WHEREAS the parties entered into an agreement for the treatment of sanitary sewer discharges from the District in 1977 (Agreement), and WHEREAS the Agreement has been previously extended, and WHEREAS the parties desire to continue to operate under the terms of the current Agreement while continuing to develop a new long-term agreement, NOW, THEREFORE, the parties agree to extend the terms of the current Agreement through December 31, 2021 to allow for the development of a new long-term agreement. Signatures follow on next page: l: \ Wastewater\Township Agreements\Algoma SDI Extension Agreement_11-25-20.docx Page 1 of 2 TOWN OF ALGOMA SANITARY DISTRICT #1 By: Date: Chad Hayes, President By: Date: Peter Cernohous, Treasurer By: Date: Sue Drexler, Secretary CITY OF OSHKOSH By: Date: Mark Rohloff, City Manager By: Date: Pamela Ubrig, City Clerk By: Date: Russ Van Gompel, Finance Director By: Date: Lynn Lorenson, City Attorney 1:\ Wastewater\Township Agreements\Algoma SD 1 Extension Agreement_11-25-20.docx Page 2 of 2