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�
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S'??3���T'::�� BY'
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t`l C` _r � �
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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� .
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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
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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�
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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
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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
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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_�
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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
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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
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witness
APPROVED AS TO F�RM:
John W. Pence, City Attorney
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TO:�r'�; 4F ALGOi�IA SANITARY DISTRICT n 1
By
, ommissioner
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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
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