HomeMy WebLinkAbout12. 12-72FEBRUARY 28, 2012 12 -72 RESOLUTION
(CARRIED 6 -0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE CONNECTION AGREEMENT WITH UNIVERSITY OF
WISCONSIN OSHKOSH (UWO) / UNIVERSITY OF WISCONSIN -
OSHKOSH FOUNDATION, INC. / UNIVERSITY OF WISCONSIN -
OSHKOSH FOUNDATION -- WITZEL, LLC FOR METHANE GAS
FROM THE WASTEWATER TREATMENT PLANT
INITIATED BY: PUBLIC WORKS DEPARTMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached
Agreement with the University of Wisconsin Oshkosh (UWO), the University of Wisconsin -
Oshkosh Foundation, Inc. and the University of Wisconsin - Oshkosh Foundation Witzel
LLC for methane gas from the Wastewater Treatment Plant, 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.
CITY HALL
215 Church Avenue
P.O.Box 1130
Oshkosh,Wisconsin City of Oshkosh
54903-1130 Y
O.JHKOJH
TO: Honorable Mayor and Members of the Common Council
FROM: Lynn A. Lorenson, City Attorney
DATE: February 23, 2012
RE: Resolution to Approve Connection Agreement with the University of
Wisconsin (UWO) — Oshkosh, the UWO Foundation, Inc. and the
UWO — Oshkosh Foundation — Witzel, LLC for Methane Gas from
the Wastewater Treatment Plant
BACKGROUND
In 2010 the University of Wisconsin (UWO) — Oshkosh, the UWO Foundation,
Inc. and the UWO — Oshkosh Foundation — Witzel, LLC constructed a
commercial-scale dry anaerobic biodigester at 755 Dempsey Trail. The
biodigester generates energy from the gases produced from plant and food
waste. The University, University Foundation and Witzel LLC have requested
that the City of Oshkosh make available additional methane gas created at the
City's Wastewater Treatment facility that would otherwise be unused or burned
off.
ANALYSIS
The City's Wastewater Treatment Plant creates methane gas during the course
of the Plant operations. The gas that is currently produced is used, in part, to
heat the plant facility, but gas that is not used for this purpose is unused or
burned off by the Plant.
The proposed agreement allows for the construction of facilities to convey the
unused gas created as a part of the Wastewater Treatment Plant operations to
the newly constructed biodigester facility to increase the new facilities energy
production. The methane gas would be provided at no cost for the actual gas
product.
Under the proposed agreement, the University, University Foundation and Witzel
LLC would pay all costs associated with the equipment and facilities needed to
convey the methane gas to their facility and utilize it for their purposes. The term
of the agreement is twenty years with provisions for earlier termination if
necessary or convenient for the parties.
FISCAL IMPACT
There is no anticipated fiscal impact from the proposed agreement as costs for
installation, maintenance and removal of the necessary equipment will be paid by
the University, University Foundation and Witzel LLC. The gas which is being
provided would otherwise be burned off as excess, so there is also no anticipated
cost associated with the provision of the gas to the University.
RECOMMENDATION
Staff recommends approval of the Agreement.
Respectfully Submitted, Approved:
, ri
Lynn A. Lorenson Mark A. Rohloff
City Attorney City Manager
CONNECTION AGREEMENT
Document Number Document Title
Recording Area
Name and Return Address
Oshkosh City Attorney
P.O.Box 1I30
• Oshkosh,WI 54903-1130
90609680000
Parcel Identification Number (PIN)
•
CONNECTION AGREEMENT
This document was drafted by;
David J.Praska
Assistant City Attorney
Oshkosh,Wisconsin
Date:February 8, 2012 1
CONNECTION AGREEMENT
I. PARTIES:
A. This agreement is between the following parties:
• City of Oshkosh,
a Wisconsin Municipal Corporation,
215 Church Avenue, Oshkosh, Wisconsin 54901, Grantor,
And
The University of Wisconsin — Oshkosh,
a subdivision of the State of Wisconsin,
800 Algoma Boulevard, Oshkosh, Wisconsin 54901, Grantee; and,
University of Wisconsin —Oshkosh Foundation, Inc.,
a Wisconsin Non-Stock Corporation,
842 Algoma Boulevard, Oshkosh, Wisconsin 54901, Grantee; and,
UW—Oshkosh Foundation -Witzel, LLC,
a Wisconsin Limited Liability Company,
842 Algoma Boulevard, Oshkosh, Wisconsin 54901, Grantee.
B. Each of the three(3) parties identified as "Grantee,"above, retain joint and
several benefits and liabilities pursuant to this Agreement and therefore will be
referred to collectively as "Grantee."
II. PURPOSE
A. The Grantees have entered into a partnership in which a commercial-scale dry
fermentation anaerobic biodigester has been constructed on the property known
as 755 Dempsey Trail, Oshkosh, Wisconsin. Each of the Grantees is utilizing
their individual resources to operate this facility for the purposes of teaching,
research, sustainable energy production, and carrying out renewable and
sustainable energy initiatives.
B. Grantee seeks the participation of Grantor in carrying out the intended functions
of its anaerobic biodigester. Grantor wishes to participate in, and assist with,
these purposes as described in this Agreement. Grantor's involvement with
Grantees' biodigester consists of making available to Grantee methane gas that
would otherwise be unused or burned off that is created at Grantor's wastewater
treatment facility located across Dempsey Trail from the biodigester on property
known as 233 North Campbell Road, Oshkosh, Wisconsin.
Date:February 8, 2012 2
C. Despite Grantor's participation in Grantee's biodigester venture as described in
this document, such participation, cooperation, and assistance does not indicate
or imply that Grantor and Grantee are partners or collaborators in Grantee's
biodigester project. Grantor's interest in the project is limited to the terms of this
agreement.
III. TERM
This Agreement shall be in effect for a period twenty(20) years unless otherwise
terminated as described in this document or otherwise amended in writing by the
parties.
IV. CONNECTION FACILITIES
A. Grantor agrees to allow Grantee access to Grantor's property for the purpose of
installing, operating, and maintaining all pipes, meters, and related equipment
and facilities required to safely transport methane gas from Grantor's wastewater
treatment facility to Grantees' biodigester facility.
B. The approval of equipment and facilities necessary to carryout the purpose of
this agreement shall be at Grantor's sole discretion.
C. The cost of installation, operation, and maintenance of equipment and facilities
on Grantor's property shall be at Grantees' sole expense.
D. Grantee shall have a limited, revocable, license to enter Grantor's wastewater
treatment facility for the purpose of surveying, constructing, operating, and
maintaining the methane gas transmission equipment and facilities. The
methane gas transmission equipment and facilities shall be located on Grantor's
property as generally described/identified in the plans attached hereto as Exhibit
A. The construction/ installation shall not vary from Exhibit A without the
Grantor's written approval. Grantor and Grantee agree that this agreement shall
be modified upon completion of the project for the purpose of incorporating the
project's as-built plans into this agreement.
E. All methane gas transmission facilities and equipment installed by Grantee on
Grantor's property shall become property of Grantor immediately and without
further notice upon the termination of this agreement. Grantee shall obtain no
property rights or interests in Grantor's property through this Agreement.
F. Grantee must obtain a privilege in a street and all other necessary permits from
the City for the purpose of surveying, constructing, operating, and maintaining
methane gas transmission equipment and facilities. The methane gas
transmission equipment and facilities shall be located on Grantor's right of way
property as generally described/identified in the plans attached hereto as Exhibit
A. The construction / installation shall not vary from Exhibit A without the
Date:February 8, 2012 3
•
Grantor's written approval. Grantor and Grantee agree that this agreement shall
be modified upon completion of the project for the purpose of incorporating the
project's as-built plans into this agreement.
G. All methane gas transmission facilities and equipment installed by Grantee on
Grantor's public right of way property shall be removed upon the termination of
this agreement. Grantee shall obtain no property rights or interests in Grantor's
public right of way property through this Agreement.
V. METHANE GAS PROVIDED
A. Grantor will provide Grantee with excess methane gas created at its wastewater
treatment facility at such times that it may be available. Whether or not methane
gas is "available" or in "excess" shall be determined solely at the discretion of
Grantor.
B. Grantor retains the sole right to control the supply and flow of methane gas to
Grantee as conditions dictate.
C. Grantor does not guarantee the purity/quality of any methane gas provided.
D. Grantee shall have the sole authority to refuse transmission of methane gas from
Grantor at any time.
E. Grantee shall have the right at any time to burn off methane gas provided by
Grantor.
VI. COST OF METHANE GAS
Grantor shall provide methane gas without any charge for the actual product, except
as otherwise described in this Agreement.
VII. ADDITIONAL COSTS OF CONNECTION
A. Grantee shall be responsible for all costs to design, construct, install, operate,
maintain, repair, remove, and/or replace all methane gas transmission and
related equipment and facilities.
B. Grantees' financial obligations relating to the methane transmission facilities
include both its own costs as well as Grantor's fees and costs.
C. Grantee shall reimburse Grantor's costs associated with this agreement within
thirty(30) days after Grantor submits any reimbursement notice or invoice.
Date:February 8, 2012 4
VIII. CONSTRUCTION — INSTALLATION - OPERATION
A. Grantee is responsible for the design, construction and installation, operation,
maintenance, repair, removal and/or replacement of all methane gas
transmission and related equipment and facilities.
B. Grantees responsibilities include facilities and equipment on both Grantor and
Grantee property, along with public right of way.
C. Grantee shall be responsible to the Grantor for damages to the Grantor's waste
water treatment facility that may be caused by the connections, piping, valves,
and appurtenances.
D. Grantee shall obtain all necessary federal, state, and local permits and approvals
required for the construction and operation of the methane gas transmission
facility. Grantee shall provide a.copy of all permits and approvals, including any
changes and/or modifications, to the Grantor.
E. Grantee shall obtain all necessary wastewater and storm water discharge
permits.
F. Grantor retains the sole ability to approve or deny any plans proposed by
Grantee. Grantor's discretion includes, without limitation, issues relating to
design, operation, maintenance, and repair/replacement/removal.
G. Grantee is fully responsible and liable for the work of their members, directors,
employees, agents, and contractors.
H. Grantee shall provide, at its sole expense, Grantor with full and complete as-built
drawings upon the completion of the construction and installation of the pipe and
related facilities. Examples of information to be identified on the as-built
drawings include, without limitation: traceable connections; exact locations;
type(s) of pipe; depth; and connection joints.
I. Grantee shall provide Grantor, at Grantees' expense, with all information and
documentation relating to the methane transmission equipment and facilities
within ten (10) business days after the receipt of any written request.
J. Grantor retains the right, but not the obligation, to require at its sole discretion
that Grantee install or pay for the installation of updated technology related to the
subject of this agreement.
IX. MAINTENANCE
A. Grantee is responsible for all costs for the following maintenance activities for
biodigester related equipment and facilities on Grantor's property. Grantee shall
Date:February 8, 2012 5
reimburse Grantor in full for all costs associated with all maintenance pursuant to
manufacturers requirements, and/or replacement of piping and appurtenances
involved with the connection of the gas line from the wastewater treatment plant
to the Bioferm digester complex including but not limited to piping, drip traps,
flares, flame arrestors, and valves as shown in the project record drawing sheets
H1.3 and H1.4, attached hereto as Exhibit B and fully incorporated into this
agreement.
B. Grantee is responsible for all costs for the following maintenance activities for
biodigester related equipment and facilities on or in the public right of way.
Grantee shall reimburse Grantor in full for all costs associated with all
maintenance pursuant to manufacturers requirements, and/or replacement of
piping and appurtenances involved with the connection of the gas line from the
wastewater treatment plant to the Bioferm digester complex including but not
limited to piping, drip traps, flares, flame arrestors, and valves as shown in the
project record drawing sheets H1.3 and H1.4, attached hereto as Exhibit B and
fully incorporated into this agreement.
C. Grantee is responsible for all costs for the following maintenance activities for
equipment and facilities on Grantees' property. Grantee shall perform, at its cost,
all associated maintenance pursuant to manufacturers requirements, and/or
replacement of piping and appurtenances involved with the connection of the gas
line from the wastewater treatment plant to the Grantor's wastewater treatment
facility including but not limited to piping, drip traps, flares, flame arrestors, and
valves as shown in the project record drawing sheets of the Bioferm Facility.
X. TERMINATION
A. This Agreement may be terminated by either party for any reason upon providing
the other party with written notice no less than sixty(60) days prior to termination.
B. This agreement may be terminated immediately by either party upon the
discovery of imminent threat of significant injury to the health and safety of
employees or agents of any party, or to the public. A party exercising the
immediate termination of this Agreement shall notify the other party of the
circumstances as soon as practicable after the termination.
C. In the event that this Agreement is terminated by either party, then the methane
gas transmission pipe shall be capped at each party's respective property line.
The pipe in the public right of way shall be removed. All such abandonment or
discontinuance, whether permanent or temporary, shall be at Grantee's expense.
Grantee shall provide written documentation that all pipes have been capped.
Xi. ASSIGNMENT
Date:February 8, 2012 6
This Agreement shall not be assigned, conveyed, or transferred in any way to
another party without the prior written approval of the other party. Assignment,
conveyance, or transfer without prior written approval shall result in the automatic
termination of this Agreement, without further notice.
XII. HOLD HARMLESS
A. Subject to any limitations contained in Sec. 893.80 and any similar statute, of the
Wisconsin Statutes, the Grantor agrees to hold Grantee, its officers, officials,
employees and agents harmless from any and all liability, including claims,
demands, losses, costs, damages, and expenses of every kind and description
(including death), or damages to person or property arising out of the terms of
this Agreement where such liability is founded upon or grows out of the acts or
omissions of any of the Grantor's officers, employees or agents while acting
within the scope of their employment.
B. Grantee agrees to hold the Grantor, including its council members, committee
and board members, directors, officers, employees, agents, shareholders,
insurers, successors and assigns, harmless from any and all liability,
including claims, demands, losses, costs, damages, and expenses of every
kind and description (including death), or damages to person or property
arising out of the terms of this Agreement where such liability is founded upon
or grows out of the acts or omissions of any of the Grantee's directors,
officers, employees or agents while acting within the scope of their
employment.
C. The parties intend that each party is to be fully responsible for its respective
duties according to the terms and provisions of this Agreement and that this is to
be construed liberally in favor of the party seeking to be held harmless.
XIII. JOINT AND SEVERAL RESPONSIBILITIES
Each of the individual Grantees identified in this Agreement is jointly and
severally liable for the obligations described in this Agreement. Grantor, at its
sole discretion, may enforce any provision against one or more of the individual
Grantees and shall not be required or obligated to take any enforcement actions
against all of the individual Grantees.
XIV. NOTICES
All notices concerning this Agreement will be in writing and sent by certified mail
or personally delivered to the parties at their respective addresses listed above,
or such other address as the respective party may provide in writing.
Date: February 8, 2012 7
XV. ENFORCEABILITY AND SEVERABILITY
If any provision, covenant, agreement or portion of this Agreement or its
application to any person, entity or property is held invalid, such invalidity will not
affect the application or validity of any other provisions, covenants or portions of
this Agreement, and to that end, all provisions, covenants, agreements and
provisions of this Agreement are declared to be severable. If for any reason this
Agreement is ruled invalid or if any provision of this Agreement is held invalid, the
parties shall take such actions, including any legislative actions, as may be
necessary to give effect to the spirit and intent of this Agreement and the
objectives of the parties as disclosed by this Agreement. This Agreement may
be enforced only by the parties to this Agreement.
XVI. NO THIRD PARTY BENEFICIARIES
This Agreement is for the benefit of the parties identified. No rights to non parties
shall be created through this Agreement.
XVII. DOCUMENTS
All documents created by or caused to be created by Grantee shall be presumed
to be public records as defined by statute without regard to any confidential or
similar designation on any document provided by Grantee or Grantee's
employees, representatives, or agents. Grantee shall hold harmless, defend,
and indemnify Grantor for all costs, expenses, and damages incurred relating to
requests for records related to the Grantee's biodigester facility pursuant to
Wisconsin open records laws.
XVIII. ENTIRE AGREEMENT AND MODIFICATION
This document sets forth all agreements, understandings and covenants
between the parties. Recitals are also considered material terms of this
Agreement. Permits and other agreements related to these parties and to the
Property that are referenced in this Agreement are fully incorporated herein.
Unless otherwise expressly stated within this document, this Agreement
supersedes all prior agreements, negotiations and understandings, written or
oral, and is a full integration of the entire agreement of the parties. This
agreement can be modified only through a written documents signed by
authorized individuals.
In WITNESS WHEREOF, the parties have executed this Agreement on the dates
written below and, by so executing, each of the parties warrants that it possesses full
right and authority to enter into this Agreement.
[SIGNATURE PAGE FOLLOWS]
Date:February 8, 2012 8
UNIVERSITY OF WISCONSIN-OSHKOSH CITY OF OSHKOSH
' �
I -.i,A1r . I 4 I .
homas Sonn -itner (s-te) Mark A. Rohioff (date)
Vice Chancellor-Administration City Manager
` iktIl4A-s 6. Sou _f rr i
Pamela R. Ubrig, City Clerk
(print name and title) ( ate)
APPROVED:
•
Lynn A. Lorenson, City Attorney
STATE OF WISCONSIN )
)ss
WINNEBAGO COUNTY )
Personally came before me this day of , 2011 the above-
named Thomas Sonnleitner of the UNIVERSITY OF WISCONSIN - OSHKOSH
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.
--140-111-291-2
Notary Public, Winnebago County,Wisconsin
My commission is permanent/expires: g'-/G) S
STATE OF WISCONSIN )
)ss
WINNEBAGO COUNTY )
Personally came before me this day of , 2011, 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:
Date:February 8, 2012 9
U V O' : ONSIN-OSHKOSH
gie Fi FO -°
A V •athfe (date)
Press• -n j2/i f., Le,(print name and title) (date)
UW-•P O'. yit r DATION -
WI ,igui i
Arthu'Rathjen (date)
Managi • Me •
(print name and title) (date)
STATE OF WISCONSIN )
)ss
WINNEBAGO COUNTY ) e
Persona y came before me this �# day of Fe_b , 201, the above-
named Alit iur Rathjen and /r-jh u 1- c-f e r, of the
UNIVERSITY OF WISCONSIN - OSHKOSH FOUNDATION, INC. 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: k 16 i
STATE OF WISCONSIN )
)ss
WINNEBAGO COUNTY )
Personally came before me this c t{-day of -e.-(7 , 2011 the above-
named Arthur Rathjen and /ar-l" - Q_c,-1-k3e y of the UW -
OSHKOSH FOUNDATION - WITZEL, 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.
hatu-01/1 ,-74-6, A .../-cLA./K_
Notary Public,Winnebago County, Wisconsin
My commission is permanent/expires: $'-/(-i -
This document was drafted by:
David J.Praska,Asst.City Attorney
Oshkosh,WI 54902.1130
Date:February 8, 2012 10
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