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HomeMy WebLinkAbout29242 / 77-06December 15, 1977 # 6 RESOL[PrION PUFtPOSE: ENTER IN7.'O AG�2EEN�7T WITH TCx�I�T Or^ AI,GO��, SAI�IITARY DISTRICT #1 INITIATF� Bi': CITY ADNIINISTRATION BE IT RESOLVID by the Cormr�n Couricil of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into the attached Agree�nt between the City of Oshkosh and the Zbwn of Algoma Sanitary Di.stric� #1. - 6 --� S'??3���T'::�� BY' �.,��e.�,,..,,,, t`l C` _r � � � C� AGREEr1ENT BET[�F�EI1 THE CIT� OF OSFIKOSFi T�ND THE TO��TN OF' ALGOhI�'. SANITARY DISiRICT #]__ THIS AGREEM�NT, made and executed this r,� day of !P �'=�,�� 1977, by and between the City of Oshkosh, a municipal corporation, herein known as "City", located in �he City of Oshkosh, �4innebago County, ��lisconsin, and the Town of Algoma Sanitary District �l, hereir� known as "District", a tocan sanitary district located in the Town af Algoma, Winnebago County, Wisconsin, WITNESSETH THAT: WHEREAS, each of the parties hereto, being a municipal cor- pc�ration, has a responsibility of providing an orderly, efficient and sanitary means of collecting, treating and disposing of the sewage of the residents of such corporation, and WHEREAS, the parties have heretofore e.itered into an Agreement a.n Principal dated June 27, 1973, as renewed from time to time, providing for a joint effort for the collection, treatment and disposition o� the sewage of the residents of such corporations, and WHEREAS, said Agreement in Principal was entered into for the reasons that final engineering plans and specifications for collection and treatment facilities were not completed at the time of the joining of the agreement in principal, and WHEREAS, City has now completed the construction and financing of a sewage treatment plant not in existence at the time of the execution of said Agreement in Principal, and WHEREAS, District i.s now prepared to proceed with the construction of a sanitary sewer collection system, the treatment of which sewage shal.l be processed by City, PJOW, THEREFORE, in fulfillment of said Agreement in Principal and in consideration of premises and of the conditions and covenants hereinafter set forth, the parties hereby agree as follows: 1. That this Agreement replaces the Agreement in Principal by and between the pariies dated June 27, 1973 as extended from time to tirn� . ! -2- 2. That City and District shall collect, treat, and dispose of their sar.itary se�vage on a joint basis, upon te.rms and co:�ditions as set forth in this Agreement. 3. That City shall and District shall not install, opzrate and maintain facilities for the treatment of sani_t�ry se�:age. District shall contribute money for such facilities of the City, upon terms and conditions as set forth in this Agreement. 4. City shall install, operate and maintain a sanitary sewage interceptor system adequate to convey the sanitary sewage of District, as described in this Agreement. District shall contribute money for the installation, operation and maintenance of said interceptor system, upon terms and conditions as set forth in this Agreement. 5. District may from time to time install, operate and rtaintain systems for collection of sanitary sewage within the District as it may from time to time be constituted. Sanitary sewage so callected from District shall be transmitted by District to the interceptor system of City at certain collection points ta be determined by the parties. Said collection systems shall be installed, operated and maintained by District and City shall have no obligation in regard thereto. � 6. District may from time to time instalZ, operate and maintain interceptor sewer systems for the purpose of transmitting _ sanitary se�•rage from its collection system to the interceptor system of City. Such interceptor sewer systems shall be installed, operated and maintained by District and City shall have no obli- gation in regard thereto. 7_ As part of said collection system, District shall install, operate and maintain metering devices approved by City to meter alI sanitary sewage emanating from District. 8. Except as may be provided otherwise by express agreement, the costs of installation, operation and maintenance of jointly used facilities shall be apportioned between the parties as set forth in this Agreement. The parties shall adopt a uniform system of accounts far the sewerage systems substantially � � -3- in accordance with the ��Jisconsin Public Serva_ce Commiss:ion System For t�iunicipally Owned �aater litilities {Classes A and B) . 9. Th� sanitary sewa�e treatment plant of Ci_ty, herein known as "Plant", shal.l be deemed to consist of the present facility located on Campbell Creek in the City of Oshkosh. For the purpases of this Agreement, all se���age which passes through Plant, ���hether treated or not, shall be deemed sanitary se�vage. 10. The Plant and interceptor sewers as they presently exist serve the City of Oshkosh. ihe parties intend that Plant and interceptors will continue to serve the City as from time to time it is constituted, and that they will also serve the District as it may be from time to time constituted. It is understood and agreed that the design capacity of Plant allocable to District's use thereof is 2,080,000 gallons per day (g.p.d.) which is 10.4� of the total design capacity of Plant. District shall have no right to exceed 2,080,000 g.p.d. for its purposes except with the express written agreement of City. The parties also anticipate that Plan� may serve additional areas not included within the corporate limits of City or District as those limits are from time to time defined. Service rendered by City to others not parties to this Agreement shall, for the purgoses of this Agreement, be �onsidered to be services oi the City for its own benefit. 11. Operation and maintenance costs of Plant and interceptor sewers as they presently exist shall be defined for the purposes of this Agreement to include the following: direct and general maintenance expense, allocable general municipality administration expense, and depreciati.on of capital investm�nt. Said expenses shall be appor�ioned between the parties as provided in this Agreement. District shall pay to City its pro-rata share of operation and maintenance cost, to be computed as follows: A. Demand Cost: + + + + + x x Cost of liquic�s and solids handling for treatment plant Maintenance of treatment plant Laboratory cost done at treatment plant Annual audit cost � Office rental cost Professional services of outside consultants Depreciation from above areas 15� 2.5% District demand cost re operation and r�azntenance expen� � -4- B. Flow Cost: Cost of liquids and solids handlizlg for treatment plant + Maintenance of treatment plant + Laboratory cost done at treatment plant + Annual audit cost + Office rental cost + Professional services of ou�sic.e consultants - Depreciation frorn above areas x 850 x District's actual gallonac;e flow through plant Total gallonage flow through plant � = District's flo�•� related cost of operation and maintenanc C. Depreciation: Annual depreciation taken x 2.5% = District's share of annual depreciation District`s annual cost for operation and maintenance therefore .� . would be the sum of the amounts computed pursuant to the formulas set forth in A, B, and C of this parayraph.. Using the year 1976 as an.example, such costs shall be computed as follows: A. Demand Cost: Treatment plant $834,401.17 + Maintenance $126,934.91 + Solids $157,269.14 + Laboratory $23,378.72 = Total $1,141,983.94 - Depreciation $348,964.45 = Net $793,019.49 X 15� = Result $118,952.92 x 2.5% B. Flow Cost: Treatment plant $834,401.17 + PSaintenance $126,934.91 + Solids $157,269.14 + Laboratory $23,378.72 = Total $1,141,983.94 - Depreciation $348,964.45 = rdet $793,019.49 X 85� = Result $674,066.57 X .0147%* - Total $2,973.82 $9,908.78 C. Depreciation $348,964.45 � X 2.5� = Total $8,724.11 Total. COSt to District for 1976 had contract then been in operation $21,606.71 (*This computation assumes a flow from the sanitar.y district of 45 million gallons which, when added to the City's actual flo�a of 3,016.85 million gallons assumes a total flow with District connected of 3,061.85 million gallons �ohich would be divided into the District's estimated flow of 45 million gallons -5- to arrive at the 1.47� factor.) 12. The pazties further agree that �ahen District`s actual use of Plant, based on average gallon flo�vage as metered, for the latest quarter, exceeds 500,000 g.p.d., that the factors to be applied to the 150 of der�,and related cost shall be increased to �o per year and the District's share of depreciation shall also be increased to 5o per year. This incrAase and all future increases shall be retroactive to the date of execution ot this Agreement. When the District's actual average gallon flowage for the latest quarter exceeds 1,000,000 g.p.d. the factors for depreciation and demand costs shall be increase to 7.50. ��Then District's actual average gallon flowage for the latest quarter exceeds 1,500,000 g.p.d., the factors for depreciation and demand costs shall increase to 10.4%. 13. District shall pay to City, in cash, at or before the time of connecting District's collection system to City's interceptor system, District's allocable share of the capital . cost of Plant and existing interceptors of City, the sum of $37z,970.97, in full satisfaction of District's obligation to City for capital costs of Plant and interceptors as they pres�ntly exist. 14. The parties anticipate that from time to time, as the territories actuall.y served by their respective sanitary sew�rage coll.ection systems expand toward each other, there may be areas in their respective territories which will be served more econom�.cal.ly or practically by the collection systerrt or interceptor system of the other party. Agreements relating to intersystem services for such territories shall be agreed upon by the parties upon terms and condi,tions equitable to the parties at the time of initiation of such intersystem services. . 15. City and District may contract for such service and maintenance on sanitary sewerage collection facilities o�vned by Distzict upon whatever basis may be agreeable to both par�i.es. Service or maintenance contracts shall be independent of this Agreement, except that�the aTOUnts paid by any party to any other party shall be accounted for in the computation of operation and maintenance expenses and general municipality administr_ative ��- •.;_';�='_S� �-1;' C�c'..�l.ilr(1 __Il t:?:LS .={i -'?�°=`�`� SC� �:?�� 11J C�OLitiJ�ti CC13r'�jP_� ':t:� may be made therefore. 16. District agrees to make every effor-� and to take every action whicli may be caithin its authority to ensur� that storm coaters and surface drainage will not enter into any sanitary sewer line of its system. Citl� also agrees that, to the extent it installs and operates collection facilities which utilize the collection systems or interceptors of the town sanitary districts, it will make similar efforts and take similar actions to ensure against collecti.on of such waters and drainage. The parties also agree to make reasonable provisions to control the collection of wastes which produce excessive loads due to any tznusually concentrated presence of deleterious waste matters. To the extent that such wastes are collected by any party it is anticipated that the cost of collection and treatment of sewage will be increased accordingly. The engineers of the parties involved shall calculate the resulting cost increase from agreed upon contribution coefficients and the sum so computed shall be assessed annually against the party collecting such wastes. 17. Each party agrees that to the extent the installation, repair or maintenance of its sanitary sewerage facilities require or necessitate construction work to be done in the road right-of- way or other property of any other party or municipality it will repair or cause to be repaired such roads or streets or property in accordance with the standards of such other party or municipality then in effect for the property so affected. To the extent it is necessary for the City to do any of the work contemplated in this paragraph, the Sanitary District will secure any and all permits zn the Town of Algoma. 18. The parties agree that no party shall.be responsible or liable to the other party for any loss caused by any breakdown or failure of facilities affected by this Agreement not due to the negligence or wilful neglect of the responsible party and that each shall make no charc�e to the other for its separate facilities except as set forth in this Agreement. 19. Each party shall keep accurate books, records and accounts of every cost, expense, expenditure or disbursement which may be made or entered by such party and �vhich may or will -�- effect the performance of -L-his �lgreernent. Upon reasonable noti.ce, any party or its agent shall be entitled to examine and inspect the books, records and accounts af any other party for the purpose of verifying charges or credits paid or made pursuant to or �in performance of this Agreement. 21. Operation and maintenance expenses as contemplated by this Pgreem�nt essentially represent annual expenditures, or expenditures �ahich may be amortized or otherciise placed on an annual or periodic basis. These costs shall be computed on annual or other periodic bases�and apportioned ariong the parties in the manner provided by this Agreement. Payment shall. be due, or otfsetting credits may be made, on a quarterly basis, commencing on the first day of the months of January, April, Jul.y or Octobe�, whichever may be applicable initially, and quarterly around the first day of those months thereafter. A. For purposes of establishing applicable rates, expenses shall be esta.mated until such tim? as actual expenses are detzrmined. The first quarterly billing following the determiz�ation af actual yearly expenses shall include an adjustment of the previous billings for that year. B. Upon any recomputation af any cost, or appar- tionment thereof required or requested of either party, notice in wziting shall be given to all parties affected. The quarterly payment which may be due next following such recomputation shall be adjusted to reflect any adjustment necessitated by such recom- putation. Al1 payments of quarterly billing shall be paid in full within sixty (60) days of receipt thereof, provided, that the parties may agree to alternative terms with respect to ar_y adjustment, the payment of which within sixty (60) days would constitute an unreasonable financial hardship; provided further, that the parties shall agree upon a reasonable period of time following the occur- rence of any event which gives any party the right to request such adjustment, upon the expiration of which such right shall terminate. 22. New capital investmer_t may be required in the f.uture for treatment of sewage emanating from District's collection syst�m. �,iitn reference to such new capital.investment by City, the engineers c:�arged with responsibility for design of such new � investment shall calculate the proportion thereof ��,hich is intended to service sewage emanating from th� various areas to be serviced by said investment. District's proportionate share shall be then calculated and District shall pay to City its allocable share of such investment either in cash or pursuant to whatever terms may be agreed upon between the parties. 23. All disputes which cannot be resolved by the parties relating to the application or interpretation of any of the provisions of this Agreement shall be submitted for binding arbitration under the usual rules and procedures of the American Arbitratian Association and any award thereunder may be entered as a Judgnent in any court having jurisdiction. 24. This contract shall have a term of thirty (30) years commencing with an effective date which is even herewith. Said term shall be renewable upan ten (10) year extensions and shall be terminable upon mutual consent of the parties at least one (i) year prior to the expiration of the term or of any extended term hereof. IN WITNESS WHEREOF, we have hereunto set our hands and seals on the day and year first written above. CITY OF OSHKOSH By: witness William D. Frueh, City 2lanager By : witness Converse C. Marks, City Clerk �, ; �/ ,� C�� � witness APPROVED AS TO F�RM: John W. Pence, City Attorney _o_ TO:�r'�; 4F ALGOi�IA SANITARY DISTRICT n 1 By , ommissioner i . B1r' ����,��G�� Ct . ✓ D�l�.1L-c������-t:�t./ , Commissioner BY = � / � ,��..� , Commissioner CURTIS, MacKENZIE, HAASE & BR0T�+7N, S.C. By: � � obert A. Haase Attorney for the Town of Algoma Sanitary District nl � � � � a� � � a� � � c� � � cd N C/1 � CCS S-� � cd � � O .I-� 4� O r� � � O � •r-I `��' -{-� -I� O U � H •rl � � O � -I� � +� � N •rl •r-I f� $ Ca .-. ti � � N � � -1-� . � � O � Q � O � H � � O K--i � O � ti ti � rn � � � � r-I "� e ` � � � t--i � �� � .,Y� � U � � �ri Q U > . .. _ � —�_}.r-...-- -. —.. ,T . - . _ .-.. _3 . . .F. ;