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HomeMy WebLinkAbout10-268AUGUST 24, 2010 10 -268 RESOLUTION (CARRIED 4 -3 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE SERVICE AGREEMENT WITH UTICA ENERGY FOR MUNICIPAL SANITARY SEWER SERVICE INITIATED BY: CITY ADMINISTRATION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Service Agreement with Utica Energy for industrial wastewater discharge through the City's sanitary sewer system, is hereby approved and the proper City officials are hereby authorized to execute and deliver the agreement in substantially the same form as attached hereto, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the Agreement. SERVICE AGREEMENT The parties to this agreement are Utica Energy, LLC, a Wisconsin Limited Liability Company ( "Utica Energy "), with its principal office located at 4995 State Road 91, Oshkosh, Wisconsin 54904, and the City of Oshkosh, a Wisconsin Municipality ( "City "), with it principal offices located at 215 Church Avenue, P.O. Box 1130, Oshkosh, Wisconsin 54903 -1130. Utica Energy has petitioned the City with a request that the City accept Utica Energy's industrial wastewater discharge through the City's sanitary sewer system for its property at 4995 State Road 91, Oshkosh, Wisconsin. The subject property is within the County of Winnebago, Town of Utica, and is identified by Winnebago County as Parcel #024 -0002, and is legally described as follows ( "Property "): Lot 1 of CSM #5084, in County of Winnebago, Town of Utica, comprising 23.24 acres Parcel ID #024 -0002 As of the date this Agreement is executed, the Property is not within the municipal boundaries of the City of Oshkosh. Utica Energy agrees that in order for the Property to receive municipal sanitary service, it must enter into this and other agreements, including but not limited to, an annexation agreement, deemed reasonable and necessary by the City, as well as obtain and abide by all permits required by the City and other applicable governmental agencies. The parties agree that at such time as the Property is annexed by the City, municipal services provided will conform entirely to the Municipal Code and the normal practices and procedures applicable to properties within the municipal boundaries. Prior to the date of annexation, Utica Energy agrees to the following conditions in return for sanitary sewer service for its industrial discharge of wastewater into the municipal system: 1. Utica Energy shall at all times submit to the City funds for a deposit for unpaid service to the Property. The advance deposit of funds shall be one (1) months estimated charge for service. The estimated charge shall be calculated over the prior twelve (12) calendar months, and shall remain in effect for the subsequent calendar year. For the initial twelve (12) months of service, Utica Energy shall submit the amount of $11,400.00 as its initial deposit. Deposits are for the purpose of reimbursing the City for costs of service, or damages, after service to the Property has ended. 2. Utica Energy shall be billed monthly for services provided to the Property. Utica Energy shall pay each monthly bill for services provided without expectation or request that any deposit be used to pay for such service. 3. Utica Energy shall provide meter readings on the 20 of the month, for the following month's bill. 4. Utica Energy shall at all times submit to the City funds for a deposit for costs related to the Pretreatment Program. The deposit shall be in the amount of the estimated cost for the following year. For the initial twelve (12) months, Utica Energy shall submit the amount of $2,000.00 as its initial deposit for costs related to the Pretreatment Program. Deposits are for the purpose of reimbursing the City for costs of the Pretreatment Program, or for damages, after service to the Property has ended. 5. Utica Energy shall be billed on a quarterly basis, or based upon the standard billing procedure at any particular time, according to the City's standard schedule for payments related to the Pretreatment Program. 6. Utica Energy shall remain current on its billings, and payments and /or advances due. Utica Energy shall have five (5) business days to correct any defect in payment after notice from the City. Utica Energy agrees that its failure to correct may result in the immediate disconnection /termination of service to the Property, without notice, at the sole discretion of the City. The City's actions or inactions regarding disconnection /termination of service shall under no circumstances be considered a waiver of any of its rights or remedies. 7. At the time of any termination of service, Utica Energy agrees that the City may deduct, without notice, all amounts it is owed from any deposit. 8. Utica Energy shall be solely responsible for all costs of infrastructure installation and connection to the City's system. This responsibility is for all costs, whether incurred by it or its agents, or by the City. 9. Connection to the City utilities shall not occur until the City, at its sole discretion, approves of all plans and agreements. 10. Service to the City utilities shall not occur until the City, at its sole discretion, approves of all plans and agreements. 11. Utica Energy is solely responsible for the cost of maintaining its utility infrastructure, as well as the connection to the City system. 12. This agreement shall bind the parties identified in this Agreement, as well as their successors and assigns with interests in the Property. 13. The terms of this Agreement shall terminate on the date that the Property is Annexed into the City. At that time, all normal rules and regulations for users of the City system shall apply, except where otherwise noted. If funds remain with the City as a deposit or deposits, Utica Energy shall provide the City with written instructions regarding the disposition of such funds. The City shall have no obligation to do anything with the deposit funds until such time as it is instructed to take certain actions by Utica Energy. [SIGNATURE PAGE FOLLOWS] UTICA ENERGY, LLC CITY OF OSHKOSH (date) Mark A. Rohloff (date) (print name) Managing Member City Manager Pamela R. Ubrig, City Clerk APPROVED: Lynn A. Lorenson, City Attorney STATE OF WISCONSIN ) )ss WINNEBAGO COUNTY ) ACKNOWLEDGMENT Personally came before me this day of , 2010, the above - named and of UTICA ENERGY, LLC, known to me to be the persons and officers who executed the foregoing instrument and acknowledged that they executed the same as such officers by its authority, for the purpose therein contained. Notary Public, Winnebago County, Wisconsin My commission is permanent/expires: STATE OF WISCONSIN ) )ss WINNEBAGO COUNTY ) Personally came before me this day of , 2010, Mark A. Rohloff and Pamela R. Ubrig, known to me to be the persons and officers who executed the foregoing instrument and acknowledged that they executed the same as such officers by its authority, for the purpose therein contained. Notary Public, Winnebago County, Wisconsin My commission is permanent/expires: This document was drafted by: David J. Praska, Asst. City Attorney Oshkosh, WI 54902 -1130