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HomeMy WebLinkAbout[07b] Sewer Use Agreement - City of St. CloudCITY OF ~T. JI1SfiYH Council Agenda Item , MEETING DATE: September 17, 2009 AGENDA ITEM: Sewer Use Agreement -City of St. Cloud SUBMITTED BY: Engineering/Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The St. Cloud Area Wastewater Advisory Committee (SCAWAC) has been working on the new Sewer Use Agreement (SUA) between the City of St. Cloud and the area Cities of St. Joseph, Sartell, Sauk Rapids, Waite Park and St. Augusta. SCAWAC has working through the issues and are recommending each City authorize execution of the agreement. PREVIOUS COUNCIL ACTION: The City Council in August joined with the area Cities in hiring Flahtery and Hood to review the proposed sewer use agreement and serve as a neutral party to come to consensus on the agreement. Jointly hiring a consultant was also the most cost effective method of review. BACKGROUND INFORMATION: Over the past two years the area Cities have been working on the needed upgrade and expansion of the St. Cloud Treatment System. Each City previously identified the amount of treatment capacity for the next 17 years and once that was completed the area Cities joint executed a Cooperative Design Agreement for the expansion. Shortly after that process was complete SCAWAC started working on a new sewer use agreement between the owner, City of St. Cloud, and the contract users. The new SUA addresses the concerns of the area Cities regarding fiscal and operational obligations. Randy Sabart, Tracy Ekola and Terry Thene represented the City of St. Joseph on the SCAWAC and did an excellent job protecting the interest of St. Joseph. Randy and Terry can further answer questions and explain the process at the Council meeting. BUDGET/FISCAL IMPACT: ATTACHMENTS: Draft SUA, Resolution 2009-024 REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute Resolution 2009- 024 RESOLUTION N0.2009-024 RESOLUTION AUTHORIZING APPROVAL OF WASTEWATER TREATMENT SYSTEM USE AGREEMENT BETWEEN THE CITY OF ST. JOSEPH AND THE CITY OF ST. CLOUD WHEREAS, the City has an interest and desire to continue receiving wastewater conveyance and treatment services for the City of St. Joseph from the City of St. Cloud through its St. Cloud Wastewater Treatment System; and WHEREAS, together with the cities of St. Augusta, St. Joseph, Sauk Rapids and Waite Park, the City previously approved and executed a Cooperative Construction Agreement with the City of St. Cloud to facilitate the planned expansion, upgrade and rehabilitation of the St. Cloud Wastewater Treatment System to continue facilitating planned growth and development; and WHEREAS, with the assistance ofjoint legal counsel services, the terms for a new sewer use agreement have been prepared to facilitate the proposed construction activity and the roles and responsibilities of the parties involved in the continuing operations, maintenance and repairs of the current and expanded St. Cloud Wastewater Treatment System; and WHEREAS, the parties now desire to execute the Wastewater Treatment System Use Agreements by and between the City of St. Cloud and the contract cities, including the City of St. Joseph; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF ST. JOSEPH, MINNESOTA AS FOLLOWS: That the Mayor and City Administrator are hereby authorized to execute the Wastewater Treatment System Use Agreement in the form as essentially attached hereto. ADOPTED BY THE ST. JOSEPH CITY COUNCIL THIS DAY OF .2009. Alan Rassier, Mayor Judy Weyrens, City Administrator SEAL WASTEWATER TREATMENT SYSTEM USE AGREEMENT BETWEEN THE CITY OF ST. CLOUD, MINNESOTA AND CITY OF ST. JOSEPH, MINNESOTA. This Agreement, made and entered into this day of , 2009, by and between the City of St. Cloud, Minnesota, hereinafter referred to as the "City," acting as the provider of wastewater conveyance and treatment services and as the holder of the National Pollutant Discharge Elimination System (NPDES) Permit and State Disposal System Permit (SDS), in accordance with Section 402 of the Clean Water Act, whereas the United States Environmental Protection Agency (EPA) authorizes the Minnesota Pollution Control Agency (MPCA) to issue this permit, and City of St. Joseph, Minnesota, hereinafter referred to as the "Contract User." RECITALS A. The City owns and operates the St. Cloud Wastewater Treatment Facility (WWTF) and the Wastewater Conveyance System (WWCS). The WWTF and WWCS together comprise the St. Cloud Wastewater Treatment System (SCWWTS or WWTS). The purpose of the WWTS is to provide for the conveyance and treatment of domestic, commercial and industrial wastewater. B. The existing WWTF began operation in June 1976, replacing the St. Cloud Sewage Treatment Plant that began operation in April 1956. The WWTF cost approximately $16,000,000 to construct and was partially funded through state and federal grants made available through the 1972 Clean Water Act. C. The Ciiy received a construction grant for the WWTF and in compliance with that grant, the requirements of the Clean Water Act of 1972, and the regulations issued pursuant to said Act, has adopted a Sewer Use Ordinance regulating the discharge of wastewater into the City's wastewater system. The City has adopted a System of User Charges to assure that recipients of wastewater conveyance and treatment services pay the proportionate share of the cost of operation, maintenance, improvement, expansion and replacement of the WWTS. D. The City and the cities of St. Augusta, St. Joseph, Sartell, Sauk Rapids and" Waite Park had previously entered into Cooperative Construction Agreements and Sewer Use Agreements that establish wastewater treatment charges, flow allocations and discharge limitations for the SIS and the WWTF. The flow allocations and discharge limitations for the WWTF are set forth in Article II, Section H of this Agreement. The established flow allocations and discharge limitations for the SIS are set forth in EXHIBIT A of this Agreement. The above-referenced cities collectively comprise the membership of the St. Cloud Area Wastewater Advisory Commission (SCAWAC). The goal of SCAWAC is to promote the continued equitable and efficient distribution of wastewater conveyance and treatment facility costs and services. Wastewater Treatment System Use Agreement Page 1 of 23 E. In August 2003, the SCAWAC requested the City complete a Wastewater Treatment Facilities Plan to evaluate current and future growth needs and ensure there is adequate wastewater treatment capacity in the future. SCAWAC reviewed the Wastewater Treatment Facilities Plan and approved recommendations for the rehabilitation, upgrade and expansion of the WWTF. F. Subsequent to the adoption of the Wastewater Treatment Facilities Plan, the cities of St. Augusta, St. Cloud, St. Joseph, Sartell, Sauk Rapids and Waite Park entered into a Cooperative Design and Construction Agreement with the City dated May 8, 2008, setting forth the financial participation of the parties in the design, upgrade, expansion and rehabilitation of the WWTF. Wastewater Treatment System Use Agreement Page 2 of 23 ARTICLE I DEFINITIONS Unless the context specifically indicates otherwise, the following terms used in this Agreement, shall have the meanings hereinafter designated. "Carbonaceous Biochemical Oxygen Demand (~BODs)" means the quantity of oxygen utilized in the biochemical oxidation of organic matter, in the presence of a nitrification inhibitor, under standard laboratory procedures in five (5) days at twenty degrees (20°) Centigrade expressed in terms of weight and concentration (milligrams per liter or mg/L). "CFR" means the Code of Federal Regulations, which is the codification of general and permanent rules of departments and agencies of the federal government. "City" means the City of St. Cloud or the City Council of St. Cloud or St. Cloud Public Utilities. "Contract User" means the City of St. Joseph or the City Council of St. Joseph. "EPA" means the United States Environmental Protection Agency. "Flow" means the quantity of wastewater expressed in gallons or cubic feet per twenty-four (24) hours. "Industrial Discharge Permit or Permit" means a permit issued by the City or Contract user to an Industrial User authorizing them to use the SCWWTS as established herein. "Industrial Waste" means solid, liquid, or gaseous wastes, excluding domestic waste, resulting from any industrial, manufacturing, commercial, institutional or business activity, or from the development, recovery, or processing of a natural resource. "Industrial User" means any person who discharges industrial waste into the SCWWTS. "MI'CA" means the Minnesota Pollution Control Agency. "National Pollutant Discharge Elimination System (NPDES) Permit" means any permit or requirements issued by the Minnesota Pollution Control Agency (MPCA) pursuant to the Federal Water Pollution Control Act, as amended (33 U.S.C. § 1251 et seq.); for the purpose of regulating the discharge of wastewater, industrial wastes, or other wastes under the authority of Section 402 of the Clean Water Act. "Permittee" means a user who is permitted through the Pretreatment Program by the City or a Contract User authorized to discharge wastewater into the SCWWTS pursuant to an Industrial Discharge Permit. "Publicly Owned Treatment Works (POTW)" means the treatment system as defined by Section 212 of the Clean Water Act, which is owned by the municipality (as defined Wastewater Treatment System Use Agreement Page 3 of 23 by Section 502(4) of the Act). This includes any devices and systems used in the storage, treatment, recycling, and reclamation of municipal solids residuals or industrial wastes of a liquid nature. It also includes sewers, pipes and other conveyances only if they convey wastewater to the wastewater treatment facility (WWTF). The term also means the municipality as defined in Section 502(4) of the Clean Water Act, which has jurisdiction over the indirect discharges to and the discharges from such a treatment system. "Pretreatment" means the process of reducing the amount of pollutants, eliminating pollutants, or altering the nature of pollutant properties in wastewater to a less harmful state prior to or in lieu of discharging or otherwise introducing such pollutants into the SCWWTS. The reduction, elimination, or alteration maybe obtained by physical, chemical or biological processes, process changes or other means, except as prohibited by this Agreement or applicable Sewer Use Ordinance. "Pretreatment Standards" means standards for industrial groups (categories) promulgated by the EPA pursuant to the Clean Water Act which regulates the quality of effluent discharge to publicly owned treatment works and must be met by all users subject to such standards. "St. Cloud Area Wastewater Advisory Commission (SCAWAC)" is an advisory group whose objectives are to share information, improve understanding of regional wastewater issues, and improve the level of cooperation in the resolution of regional wastewater issues. Members of SCAWAC include the cities of St. Augusta, St. Cloud, St. Joseph, Sauk Rapids, Sartell, and Waite Park. "St. Cloud Wastewater Treatment System (SCWWTS or WWTS)" means the combined Publicly Owned Treatment Works (POTW) or Wastewater Treatment Facility (WWTF) described herein, together with the Wastewater Conveyance System (WWCS) which includes the Sewer Interceptor System (SIS). "Sewer Interceptor System (SIS)" means the structures identified in EXHIBIT A to this Agreement, including the Metro Interceptor, the Pan Interceptor, the Tri-City Interceptor, the Lincoln Avenue Interceptor, the Quebecor Trunk Sewer System, and the 38'~ Avenue and 54`~ Avenue Sewer Trunk System, and their respective components as identified in EXHIBIT A. "Significant Industrial User (SIU)" means any and all Industrial Users subject to categorical pretreatment standards under 40 C.F.R. 403.6 and 40 C.F.R. Chapter I, Subchapter N and any other Industrial User that discharges an average of 25,000 gallons per day or more of process wastewater to the WWTF (excluding sanitary, noncontact cooling and boiler blowdown wastewater), contributes a process waste stream which makes up five percent (5%) or more of the average dry weather hydraulic or organic capacity of the WWTF, or is designated as such by the control authority as defined in 40 C.F.R. 403.12(a) on the basis that the Industrial User has a reasonable potential for adversely affecting the WWTF operation or for violating any pretreatment standard or requirement in accordance with 40 C.F.R. 403.8(f)(6). Wastewater Treatment System Use Agreement Page 4 of 23 "Total. Suspended Solids (TSS)" means the total suspended matter that floats on the surface of, or is suspended in, water, wastewater or other liquids, and which is removable by a standard glass fiber filter. "Wastewater Conveyance System (WWCS)" means the Sewer Interceptor System (SIS), the Main Liftstation, the TriCity Liftstation, and related force mains and sewer mains that convey wastewater to the WWTF. "Wastewater Treatment Facility (WWTF)" has the same meaning as "Publicly Owned Treatment Works (POTW)," defined above. The terms may be used interchangeably. . Wastewater Treatment System Use Agreement Page 5 of 23 ARTICLE II SERVICE CONDITIONS A. Purpose The purpose of this Agreement is to set forth the conditions by which the Contract User may discharge a defined maximum amount of wastewater flow and load into the WWTS for conveyance and treatment services and to establish mutually acceptable standards and billing procedures. B. Rights of Use a. The Contract User shall have the right to discharge into the. WWTS domestic, commercial, and industrial wastewater as long as the Contract User complies with the provisions of this Agreement or until this Agreement is terminated as otherwise provided herein. b. The parties agree that if either party believes the effect of this Agreement is inequitable or unfair, such party may by ninety (90) days of written notice, or sooner if agreed in writing by both parties, request renegotiation of any part of this Agreement and the other party will in good faith participate in such negotiations. c. If at any time this Agreement is terminated, the Contract User is responsible for its proportionate share of any existing WWTS debt service. C. Compliance with Applicable Laws a. The Contract User shall adopt, maintain and enforce the following in such a manner as to at all times comply with the Clean Water Act of 1972 and any further or supplementary amendments thereto: 1. A system of charges to ensure the Contract User is able to pay its proportionate share of the cost of operation, maintenance, expansion, rehabilitation and improvement of the WWTS. 2. An ordinance related to sewer use containing provisions that are, at a minimum, as stringent as the City of St. Cloud's Sewer Use Ordinance. The applicable ordinance shall ensure that new sewer mains, force mains, pump stations and service connections are properly designed and constructed. b. In the construction, maintenance, and operation of its sewer system, the Contract User will comply with applicable State and Federal laws. c. The City shall enforce its Sewer Use Ordinance at the points of discharge from the Contract User into the WWTS. If the Contract User discharges wastewater in violation of applicable permits or Sewer Use Ordinances to the WWTS, the City may utilize any of the remedies provided in Article II, Section H, paragraph (c) as relating to the unauthorized discharge. d. The City and Contract User shall not allow any user from outside their respective corporate limits to discharge wastewater into their respective sewer systems without the prior written approval of the City and those other Contract Users who are parties to a joint WWCS structure to which wastewater is proposed to be discharged. Wastewater Treatment System Use Agreement Page 6 of 23 D. Operation and Maintenance a. The City and the Contract User shall continue to control, own, operate, and. maintain their respective wastewater collection systems, except for joint trunk sewer lines, forcemains and interceptors that are considered part of the WWCS and identified in EXHIBIT A. b. The City shall, in consultation with SCAWAC, develop a regular operation, monitoring and maintenance schedule for the WWCS that includes a corrosion minimization and control program. The schedule shall, at minimum, require a periodic rotation of testing, maintenance and inspections of the interceptors, lift stations, force mains and sewer mains that constitute the WWCS. The City shall be responsible for implementation of the schedule. A copy of the operation, monitoring and maintenance schedule and the City and Contract User responsibilities shall be provided to the Contract User. The schedule shall be reviewed by SCAWAC at a minimum of every two (2) years, and changes recommended if appropriate. c. The City and Contract User shall make available for review all records relating to the matters covered by this Agreement. d. The City and the Contract User shall work cooperatively in the enforcement of their respective Sewer Use Ordinances. e. Neither party shall be liable to the other for damages in case of an operational or system failure not due to its negligence or which is caused by an event beyond its control, or by flow characteristics that may be determined in the future to cause or contribute to the degradation of the WWTS. £ If the City determines that a characteristic of the Contract User's flow causes or contributes to the degradation of the WWTS, despite the City's and Contract User's compliance with the developed operation, monitoring and maintenance schedules, all applicable NPDES permits, Sewer Use Ordinances and pretreatment requirements, the City shall notify the Contract User in writing and allow the Contract User no less than thirty (30) days to initiate the cure, which may include investigation, testing, and inspection. If the Contract User fails to act in good faith by the initiation of a cure after 30 days, and correct the characteristic within ninety (90) days, the City may take corrective action and assess the cost of the action to the Contract User. If the Contract User disputes the determination regarding its flow, or disputes the manner or cost of correction, the Contract User may pursue any of the remedies provided in Article IV. g. The City shall inspect, operate and maintain the WWTS and provide the Contract User an annual report of such activities. E. Ordinance Amendments a. The parties recognize that the City and the Contract User are subject to regulations promulgated by the EPA and the MPCA. b. The Contract User agrees to adopt and enforce sewer use rules, local limits, categorical limits, regulations and ordinances for the regulation of Wastewater Treatment System Use Agreement Page 7 of 23 commercial, industrial and non-domestic discharges within the Contract User's service area that are at least as stringent as those set forth in the City's Sewer Use Ordinance. c. The City shall notify the Contract User and provide a sixty (60) day comment period when making amendments to its Sewer Use Ordinance. Once amendments to the Sewer Use Ordinance are formally approved, the Contract User shall modify its sewer use ordinance to reflect such amendments. Such amendments shall be approved by the Contract User's decision-making body within six months of the date of amendment to the Sewer Use Ordinance. An administrative penalty of One Hundred Dollars ($100) per calendar day after the six month approval period may be charged to the Contract User if such amendments are not approved. d. If the Contract User believes that conforming amendments to its Sewer Use Ordinance would be detrimental to the Contract User's interests or compliance with this Agreement, the Contract User may pursue any of the remedies provided in Article IV. The assessment of administrative penalties by the City, if applicable, shall be deferred until the dispute is resolved. e. The Contract User agrees to provide a copy of applicable rules, local limits, regulations, and/or ordinances to the City for review prior to adoption and subsequent amendment thereto. F. Pretreatment Program Requirements a. The City and Contract User shall work cooperatively on all pretreatment program requirements to ensure WWTS performance and regulatory compliance. b. To the extent possible, testing and reports provided to the City shall be identical or substantially similar in form and content to testing and reports provided by the Contract User to the MPCA or other applicable agencies in order to avoid unnecessary duplication. The City may also develop forms for such purposes, which the Contract User may utilize at its discretion. c. The Contract User agrees to provide the City a copy of testing and reports and its Annual Pretreatment Program Report by January 15 of each year. d. The Contract User shall identify SIUs on an annual basis and provide a final report to the City by February 15 of each year. e. The Contract User shall conduct confirmatory sampling and inspection of all permitted SIU's at a frequency required by the Federal Pretreatment Regulations, 40 CFR Part 403. Records shall be submitted to the City within thirty (30) days of the sampling and inspection. f. The City shall provide the Contract User a copy of the annual MPCA Pretreatment Program Audit/Inspection and Annual Pretreatment Report. g. The Contract User will enforce the requirements and conditions contained in all Pretreatment permits and/or agreements that are in effect in the Contract User's service area. Wastewater Treatment System Use Agreement Page 8 of 23 G. Infiltration and Inflow Prevention The Contract User agrees to cooperate with all applicable regulatory agencies in matters regarding infiltration and inflow; and to demonstrate good faith efforts to eliminate infiltration and inflow in its sewer collection system. H. Regulation of Flows a. Wastewater Treatment Facility Discharge Limitations The quantity of wastewater discharged by the Contract User to the WWTS is defined in Table 1, below. Discharges to the WWTS by the Contract User in excess of its assigned capacity, except in conditions acknowledged by the City as significantly abnormal, shall be considered a violation of this Agreement under Section H, paragraph (c), below. b. When Phase 1 construction is complete, the WWTF will have a treatment capacity of fifteen million gallons per day (15.0 MGD) as a full biological nutrient removal (BNR) facility designed for removal of both phosphorus and nitrogen and a treatment capacity of seventeen point nine million gallons per day (17.9 MGD) as a biological phosphorus (Bio-P) removal facility. When Phase 2 construction is complete, the additional hydraulic capacity will provide the WWTF the ability to treat 17.9 MGD as a full BNR facility. Table 1.2017 and 2030 Flow Allocations User 2017 Flow GD 2017 Flow Allocations % 2030 Flow (MGD 2030 Flow Allocations (% St. Cloud 7.91 52.7 8.80 49.2 Sartell 2.43 16.2 3.11 17.4 Sauk Ra ids 1.80 12.0 1.96 10.9 St. Jos h 1.11 7.4 1.72 9.6 Waite Park 1.28 8.5 1.43 8.0 St. Au sta 0.48 3.2 0.88 4.9 TOTAL 15.00 100.0 17.9 100.0 Source: 2007 Wastewater Treatment Facilities Plan, City of St. Cloud c. Violations The City shall seek reimbursement to repair damages or pay any fines assessed by a regulatory agency caused by the discharge of prohibited wastes by the Contract User. Within thirty (30) days of the determination by the City that a Contract User has discharged prohibited wastes, the City shall notify the Contract User in writing of the City's intent to seek rembursement and an estimate of the costs of repair for damages or fines, and provide evidence supporting the determination. Wastewater Treatment System Use Agreement Page 9 of 23 In the event of a Notice of Violation (NOV) or other similar action by a regulatory agency, the City shall provide a copy of the NOV to the Contract User to which the City intends to seek reimbursement within fifteen (15) days of receipt of such NOV from the regulatory agency. The Contract User shall be provided full opportunity to participate in negotiations related to resolving the NOV and a determination by the regulatory agency of any fines or penalties that may be levied upon the City and for which the City intends to seek reimbursement from the Contract User. In the event of a dispute regarding any of the City's determinations associated with seeking reimbursement from a Contract User, the Contract User shall notify the City thereof in writing within thirty (30) days of receipt of the City's final written determination regarding cost reimbursement. Disputes shall be resolved in accordance with Article IV of this Agreement. In the event a Contract User disputes the City's determination of cost reimbursement, no payment shall be required as provided in this Article until determination has been made in accordance with Article IV of this Agreement and any related appeals. Flow Monitoring Devices a. The Contract User agrees to provide, install and maintain at its cost and expense, at points of discharge agreed upon by the City and Contract User into the City's WWTS, an automatic flow monitoring and recording device with anintegrator-totalizer for the purpose of accurately measuring the Contract User's flow. b. The records and reports from such monitoring devices shall be maintained by the Contract User and made available to the City for auditing and billing procedures. c. In the event of failure of the Contract User's monitoring device(s) for the purpose of determining billing amounts pursuant to this Agreement, it will be assumed that during any period of inoperation of the measuring device, the flow was at the average daily volume as during the same time period during the three preceding years. If the most recent three-year flow record is unavailable, or if flows have changed significantly over the preceding three years, then an alternate method as mutually agreed by the parties will be used to determine the flow during periods of inoperation of the monitoring device. d. The City shall coordinate the inspection, testing and calibration of flow measuring devices. The coordination shall include either the City retaining the services of an independent testing agency certified in wastewater flow measurement calibration services to inspect and calibrate the flow-metering device to maintain the accuracy of that device or allowing the Contract User to retain such services and provide Wastewater Treatment System Use Agreement Page 10 of 23 documentation to the City. Inspection of the flow monitoring devices shall occur at least twice per year and be calibrated at least annually or at a frequency required to maintain regulatory compliance. The cost of the inspection and calibration initiated by the City shall be billed to the Contract User and paid within thirty (30) days of receipt. f A certified copy of the inspection and test results shall be provided to the City and Contract User promptly after completion. The Contract User will not make adjustments to the certified calibration of the flow metering device without prior written notice to the City. Permission from the City is not required to perform prescribed or routine maintenance of the flow monitoring system. g. The City may inspect such metering devices at any reasonable time and in the event such a device fails and is not repaired within ten (10) days by the Contract User, the City may repair the same. When the City performs such repairs, the City shall provide the Contract User with an itemized invoice of its reasonable costs and expenses prior to reimbursement by the Contract User. If the invoice is undisputed, the Contract User shall pay the invoice within thirty (30) days of receipt. If the invoice is disputed, the parties may pursue any of the remedies provided in Article N of this Agreement. K. Wastewater Sampling a. The Contract User shall sample and analyze all required parameters and flows at its cost at each entry point into the City's WWTS on a frequency based upon the sampling schedule included in EXHIBIT B or as otherwise requested by the City. Additional samples may be collected by the City for the purpose of verifying the accuracy of the information reported by the Contract User. The analysis results from any sample collected by either party shall be shared with the other party. The City may issue or approve variances or exemptions for specific entry points and/or testing parameters in situations where there is limited value of previous data collected to minimize collection and testing costs. b. The Contract User shall collect and record the continuous flow data from the flow monitoring devices owned by the Contract User. The flow data collected shall be reported to the City on a monthly basis for the purpose of verifying compliance and for preparation of monthly billing information. c. Samples collected for carbonaceous biochemical oxygen demand (cBODs), total suspended solids (TSS), and total phosphorus (TP) analysis shall be twenty-four (24) hours flow composite. Samples collected for fats, oil and grease (FOG) or pH analysis shall be a grab sample. Time composite samples maybe used in lieu of flow composite samples in the event of maintenance, operational, or laboratory difficulties. Grab samples may be used in lieu of time composites for similar cause. d. The Contract User or the City shall have the opportunity to split samples collected by the other party. Wastewater Treatment System Use Agreement Page 11 of 23 e. Samples found to be not representative of the actual flow by mutual agreement shall not be used in calculations of charges. Split samples varying by more than twenty percent (20%) for cBODs and TSS will. not be used in the calculations for determining loadings or charges. f. Both parties will cooperate in performing additional analysis and sampling required for regulatory compliance. g. Required sampling shall be conducted in accordance with EXHIBIT B at the expense of the Contract User. h. In addition, the City shall have the right at any time to inspect, examine and/or sample the Contract User's collection system or wastewater. L. Laboratories All samples, unless otherwise mutually agreed upon, shall be collected using procedures as found in the most current edition of Standard Methods for the Examination of Water and Wastewater. Laboratories performing analyses must be certificated by the Minnesota Department of Health's Environmental Certification Program. Wastewater Treatment System Use Agreement Page 12 of 23 ARTICLE III REPORTS AND PAYMENTS A. Scope The Contract User agrees to pay Operation, Maintenance, Capital and Debt Service Charges, as set forth herein. It is understood and agreed by the Contract User that the charges do not include unanticipated or emergency capital repairs to the WWTS and the charges set forth herein are subject to annual adjustment by the City as provided herein. The Contract User will be provided sufficient budgetary information necessary to understand the WWTS revenues and expenditures, what each fee, rate or user charge is paying for, and how the charges were developed. The Contract User shall have an opportunity to review, provide comment and recommendations on budgetary information used to develop the charges. B. Measurement of Flow, cBODS and TSS For the purposes of reporting and for calculating charges as described in this Agreement, the flow shall be the totalized measurement from the flow meter at the Contract User's Point of Discharge into the City's WWTS, in accordance with Article II, Section J of this Agreement. C. Charges and Payments a. The Contract User shall pay the City for its proportionate share of the operation, maintenance, upgrade and rehabilitation cost of the WWTS as provided in the 2007 St. Cloud Area Wastewater Treatment Facilities Plan and the 2008 Cooperative Design and Construction Agreement. The unit cost for the Contract User's proportionate share shall be: Category Al (Operation and Maintenance: WWTF) Unit Costs Flow: (Annual Budget OM&R Dollars x 1/3 = $/1,000 gallons Q cBODs: (Annual Budget OM&R Dollars) x 1/3 = $/100 lb. units B TSS: (Annual Budget OM&R Dollars x 1/3 = $/1001b. units SS Category A2 (Operation and Maintenance: WWCS) Unit Costs Flow: (Annual Budget OM&R Dollars) _ $/1,000 gallons Q Wastewater Treatment System Use Agreement Page 13 of 23 Category Bl (Rehabilitation and Replacement Costs: WWTF) Unit Costs Flow: (Annual Budget R&R Dollars -A = $/year Category B2 (Rehabilitation and. Replacement Costs: WWCS) Unit Costs Flow: (Annual Budget R&R Dollars) x Q-A = $/year Category C1 (Contract User's Share of Debt Service Costs: WWTF) Unit Costs Flow: (Annual Debt Service Dollars~x 1/3 = $/year cBODs: (Annual Debt Service Dollars) x 1/3 = $/year TSS: (Annual Debt Service Dollars x 1/3 = $/year Category C2 (Contract User's Share of Debt Service Costs: WWCS) Unit Costs Flow: (Annual Debt Service DollarsZ = $/year Category D (Existing Debt Service Payments; prior to year 2000) Unit Costs Flow: (Annual Debt Service Dollars) x 1/3 = $/year cBODs: (Annual Debt Service Dollars x 1/3 = $/year TSS: (Annual Debt Service Dollars x 1/3 = $/year Terms used in the above unit cost formulas are defined as follows: Q = Total annual flow, in 1,000 gallon units measured at the City WWTF during the preceding July through June twelve (12) month period. B = Total annual pounds of cBODs, in 100 pound units, measured at the City WWTF during the preceding July through June twelve (12) month period. SS = Total annual pounds of suspended solids, in 100 pound units measure at the City WWTF during the preceding July through June twelve (12) month period. Wastewater Treatment System Use Agreement Page 14 of 23 Q-A =Percentage allocation of flow (Q) for the Contract User as set forth in Article II, Section H of this Agreement. The parties agree that if additional cost of service studies are conducted during the teen of the Agreement, the 1/3, 1/3, 1/3 flow and loading allocations presented in the above Charges and Payments shall not be changed over the term of the Agreement, except by mutual written agreement of the parties. b. The charges for the Contract User shall be calculated using the units costs defined above, multiplied by the actual flow, cBODS and TSS loadings of wastewater discharged from the Contract User into the City's WWTS, as measured in accordance with this Agreement for any given billing period. If the concentrations of the cBODs or TSS are less than the concentrations used to determine the annual unit charges, then the monthly billing charges period will be based on the cBODs and TSS used to calculate the unit charges in Article III, Section C, paragraph (a) of this Agreement. c. The charges computed shall be billed to the Contract User following the last day of each month and shall be payable within thirty (30) days. d. All rate adjustments under the terms of this Agreement shall become effective on January 1 of the following year. D. Annual Review of Unit Costs The City shall conduct an annual review and shall assemble, tabulate and distribute data in accordance with the following steps: a. Step 1: The City will tabulate the projected annual revenue requirements in a table format that clearly demonstrates which budget amounts are to be shared in proportion to flow and loading by the City and each Contract User. b. Step 2: The City will tabulate annual wastewater flow and loading for the WWTF for the immediately preceding July through June twelve (12) month period. The data shall contain the following information: Total Flow - in units of billions of gallons per year. Average Daily Flow - in millions of gallons per day or MGD. Total cBODs - in units of mg/L and pounds/year. Total Suspended Solids - in units of mg/L and pounds/year. Flow from each Contract User - in units of millions of gallons per year. Wastewater Treatment System Use Agreement Page 15 of 23 cBODS from each Contract User - in units of mg/L and pounds/year. Total Suspended Solids from each Contract User - in units of mg/L and pounds/year. Step 3: Annual budget costs shall be distributed to three elements of treatment, in accordance with the following criteria: Flow - 1/3 (one-third) cBODs - 1/3 (one-third) TSS - 1/3 (one-third) d. Step 4: Unit costs shall be computed by applying the data assembled in Steps 1 through 3. e. Step 5: The City will provide copies of the above data to the Contract User by October 1 of each year or when the City approves the following year's budget. The Contract User shall have reasonable access to the books and records of the WWTS. f. Step 6: With respect to the Contract User, the City will use the rates derived by the preceding steps for the following calendar year. g. Step 7: The Contract User shall have thirty (30) days from receipt of the data identified in Step 5 to review and provide written comments to the City on the proposed rates for the following year and their calculation. The parties shall utilize the remedies provided in Article IV to address any disputes as to the proposed rates or their calculation. h. Step 8: If a dispute regarding the proposed rates cannot be resolved by January 1 of the following year, the current year's rates shall continue in effect until the dispute has been resolved in accordance with Article IV of this Agreement. If the resolved rates for the following year differ from the current year's rates, the party that overpaid according to the resolved rates is entitled to reimbursement from the party that underpaid within sixty (60) days after a final determination on the rates has been made. E. Financial Reporting The City shall provide an annual financial report that summarizes the overall financial operation of the WWTS. The purpose of the report is to assist the Contract User in planning for capital budget expenditures, anticipated major repairs and review the budget to actual expenditures and revenues for the prior year. The City and the Contract User will work cooperatively to ensure a clear and transparent financial reporting process. The Annual report shall include, but is not limited to: Wastewater Treatment System Use Agreement Page 16 of 23 a. Sewer Fund Financial Statement and any related funds (including debt service and Sewer Access Charge accounts) as reported in the annual audit, including the detailed General Ledger accounts that make up the statements. b. Summary of the prior year budget and actual expenditures/revenues showing the correlation to the amount paid by each Contract User. c. Summary of the proposed or approved Capital Improvement Program. F. Reporting Requirements If the Contract User fails to collect and/or submit data as required by this Agreement or fails to act in good faith by correcting short term problems, the City may apply a fifteen percent (15%) surcharge to all flow and strength parameters for the most recent month for which data is available for the purposes of billing the Contract User. If the Contract User disputes the surcharge, the Contract User may pursue the remedies provided in Article IV. G. Billing and Payment On or before the fifteenth (15`}`) day of the month next succeeding completion of the first full month following the effective date of this Agreement, and on or before the fifteenth (15~') day of each month thereafter, the Contract User agrees to provide the City with requisite flow data and sampling results monitored as part of EXHIBIT B for the prior month's usage. Upon receipt of such data, the City shall calculate the charges to the Contract User and shall issue a bill to the Contract User. Such bill shall become due and payable within thirty (30) days from the billing date. Any balance remaining unpaid thirty (30) days from the date issued shall be considered delinquent and accrue a delinquent surcharge of eight percent (8%). If the Contract User disputes a bill from the City, the Contract User may pursue the remedies provided in Article N. H. Lease Payments Lease agreements contained in previous agreements shall cease when Phase 1 construction is complete and the WWTF has the ability to treat 17.9 MGD of wastewater as described in the 2007 St. Cloud Area Wastewater Treatment Facilities Plan. Wastewater Treatment System Use Agreement Page 17 of 23 ARTICLE IV DISPUTES AND REMEDIES A. Dispute Resolution The parties acknowledge that disputes regarding the interpretation or application of this Agreement may arise from time to time, and agree that, subject to the other provisions of this Agreement, each shall attempt to resolve such disputes according to the provisions of this Article, unless otherwise provided in this Agreement. The parties do not intend to limit the kind. of disputes or disagreements arising under this Agreement, which may be submitted to the Dispute Resolution procedures set forth herein. B. Request for Clarification In the event of an issue or question by either party regarding any aspect of this Agreement, both parties shall attempt to resolve that issue or answer that question amicably before proceeding to the remedies set forth in this Article. Such resolution efforts shall include communications between the parties outlining the particular issues, proposed solutions, any other items necessary to resolve the dispute. The parties agree that the request for clarification and any responses thereto should be completed no later than thirty (30) calendar days after the request for clarification is made. The parties may also seek consideration and advice through SCAWAC as appropriate. C. Negotiation When a disagreement or dispute shall arise over interpretation or application of any provision of this Agreement and such dispute does not constitute an event of default, the Parties will each direct staff members as they deem appropriate to meet at a mutually convenient time and place to attempt to resolve the disagreement or dispute through negotiation. D. Mediation/Arbitration When the parties to this Agreement are unable to resolve disputes, claims or counterclaims, or are unable to negotiate an interpretation or application of any provision of'this Agreement, the parties may mutually agree in writing to seek relief by submitting their respective grievances to mediation and/or binding arbitration. If both parties agree to submit the dispute to binding arbitration, the following arbitration provisions shall apply: (1) arbitration shall be conducted by a single arbitrator engaged in the practice of law; (2) Minnesota's Uniform Arbitration Act, Minnesota Statutes, Sections 572.08 to 572.30, shall govern the arbitrability of all disputes; (3) the arbitrator shall not have authority to award punitive damages; (4) the arbitrator's award may be entered in any court having jurisdiction thereof; and (5) each party shall bear its own costs and attorneys' fees, and shall share equally in the fees and expenses of the arbitrator. Wastewater Treatment System Use Agreement Page 18 of 23 E. Adjudication When the parties to this Agreement are unable to resolve disputes, claims or counterclaims, are unable to negotiate an interpretation or application of any provision of this Agreement, or are unable to agree to submit their respective grievances to mediation or binding arbitration, or such action has not otherwise resolved the matter in dispute, either party may seek relief through initiation of an action in a court of competent jurisdiction. Notwithstanding the provisions of this Article, upon a breach, violation, or default of any provision of this Agreement by either party or a dispute hereunder, the non-breaching, non-violating, or non- defaulting party shall be entitled to pursue any additional remedies it may have at law or in equity including, but not limited to, injunctive relief and specific performance of this Agreement in accordance with its terms. F. Waiver The exercise of any of the remedies set forth in this Article shall not limit or constitute a waiver of the parties' rights to pursue additional remedies set forth herein, except where otherwise agreed to in writing by the parties. Wastewater Treatment System Use Agreement Page 19 of 23 ARTICLE V ADDITIONAL CONDITIONS A. Governing Law This Agreement is made pursuant to, and shall be construed in accordance with the laws of the State of Minnesota. B. Term and Termination a. This Agreement shall take effect upon execution by the parties and shall be without specific limitation as to term, except that it shall not expire or terminate sooner than the end of the useful life of the upgraded, expanded, and rehabilitated WWTS described herein, unless amended or modified as provided in this Agreement. b. The City acknowledges that the improved function and capacity of the WWTS created by its upgrade, expansion and rehabilitation is the result, in part, of the capital investment in the upgrade, expansion and rehabilitation by the Contract User. Therefore the City agrees to protect the Contract User's capital investment by limiting rights to terminate this Agreement as follows: i. The Contract User may terminate this Agreement upon eighteen (18) months written notice thereof to the City. Upon receipt of such written notice, the City shall in writing inform all other contract users of the Contract User's notice of termination within fourteen (14) days. The terminating Contract User shall remain liable for any bonds, loans, or other instruments used to finance the upgrade, expansion and rehabilitation of the WWTS until such instruments are satisfied. The terminating Contract User's capacity allocation shall remain reserved. The City shall work cooperatively with SCAWAC to clarify the financial considerations the termination will create, to develop the depreciated value of the terminating Contract Users capacity allocation, any potential compensation to the terminating Contract User and the conveyance of the terminating Contract User's capacity allocation. c. If the City sells or conveys the WWTS or any part of the WWTS capacity to any other entity or third party, then such conveyance shall be subject to this Agreement. d. Either party, in its sole discretion, may request renegotiation of this Agreement pursuant to Article II, Section B of this Agreement. C. Modification/Amendment of this Agreement Except as otherwise provided herein, this Agreement shall not be modified, amended, or altered except upon the written agreement of the City and the Contract User, duly executed and adopted by the city council of each municipality. In the event that a party hereto requests to meet regarding a proposed modification or amendment of this Agreement, the request shall be made to the other party in writing and the parties shall thereafter meet at least one Wastewater Treatment System Use Agreement Page 20 of 23 time at a mutually agreed upon time and place to discuss the proposed modification or amendment within sixty (60) days of the date of receipt by the non-requesting party of the written request. The written request shall state the reason for the meeting. The Contract User and the City agree to continue to work cooperatively in development and review of Sewer Use Agreements and Wastewater Services Master Plans as well as the procedures, methods or systems used to administer the provisions of this Agreement, including all exhibits attached hereto, at the request of either party. D. Modification/Amendment of Ordinances and/or Rules Whenever either party intends to amend its Sewer Use Ordinance and/or any rules or regulations related to the operation of its wastewater treatment system that may affect the other party, except where otherwise provided in Article II of this Agreement, it shall notify the other party in writing and provide a sixty (60) day review and comment period. E. No Rights to Third Parties This Agreement is between the City and Contract User only, and creates no rights in third parties as beneficiaries of this Agreement. F. Exhibits The exhibits attached to this Agreement are intended as supplements to the Agreement. In the event of a conflict in terms or interpretation, the provisions of this Agreement shall govern. G. Severability In the event that any provision of this Agreement is determined and adjudged to be unconstitutional, invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall remain in full force and effect, and the parties hereto shall negotiate in good faith and agree to such amendments or modifications of or to this Agreement or other appropriate actions as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties hereto. H. Headings and Captions Headings and captions contained in this Agreement are for convenience only and are not intended to alter any of the provisions of this Agreement. Wastewater Treatment System Use Agreement Page 21 of 23 I. Entire Agreement The terms, covenants, conditions and provisions of this Agreement, including the present and all future attachments, shall constitute the entire Agreement between the parties hereto, superseding all prior agreements and negotiations. This Agreement shall supersede and replace the existing Sewer Use Agreements between the participating communities. Upon execution and implementation of this Agreement, said existing agreement(s) shall be null and void. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. J. Notice Any notices required under the provisions of this Agreement shall be in writing and sufficiently given if delivered in person or sent by U.S. mail, postage prepaid, as follows: If to St. Cloud: City Administrator St. Cloud City HaII 400 - 2na Street South St. Cloud, MN 56301-3622 If to St. Joseph: City Administrator St. Joseph City Hall 25 College Avenue North St. Joseph, MN 56374 EXHIBIT A -Wastewater Conveyance System (WWCS) EXHIBIT B -Sampling and Testing Schedule EXHIBIT C -Pool Capacity Agreement EXHIBIT D -Cooperative Design and Construction Agreement Wastewater Treatment System Use Agreement Page 22 of 23 IN WITNESS WHEREOF, the Council of the City of St. Joseph by appropriate resolution duly adopted, has caused this Agreement to be executed in its corporate name by its Mayor and City Administrator and its corporate seal affixed hereto; and the Council of the City of St. Cloud by appropriate resolution duly adopted, has caused this Agreement to be executed in its corporate name by its Mayor and City Clerk and its corporate seal affixed hereto, the date and year first written above. CITY COUNCIL OF THE CITY COUNCIL OF THE CITY OF ST. CLOUD, MINNESOTA CITY OF ST. JOSPEH, MINNESOTA Dave Kleis, Mayor ATTEST: Gregg Engdahl, City Clerk CORPORATE SEAL FOR THE CITY OF ST. CLOUD Al Rassier, Mayor ATTEST: Judy Weyrens, City Administrator CORPORATE SEAL FOR THE CITY OF ST. JOSEPH Wastewater Treatment System Use Agreement Page 23 of 23 EXHIBIT A OF THE WASTEWATER TREATMENT SYSTEM USE AGREEMENT WASTEWATER CONVEYANCE SYSTEM INTRODUCTION The St. Cloud Sewer Wastewater Conveyance System (WWCS) is owned and maintained by the City of St. Cloud. The Cities of Waite Park, Sauk Rapids, Sartell and St. Joseph discharge wastewater from each city's service area into the St. Cloud WWCS. EXHIBIT A is not applicable to the City of St. Augusta. This EXHIBIT is a compilation of the most current Sewer Use Agreements between the City of St. Cloud and the Cities of Waite Park, Sauk Rapids, Sartell and St. Joseph and prior Cooperative Construction Agreements pertaining to the St. Cloud WWCS. PURPOSE The purpose of this EXHIBIT is to define the components of the WWCS and segments of the Sewer Interceptor System (SIS) and clarify flow allocations for each component of the WWCS and segment of the SIS. The discharge limitations and flow allocations stated in this EXHIBIT were transferred from the most current Sewer Use Agreements when this Agreement was developed and past Cooperative Construction Agreements. The flow allocation determinations were based on the final design peak capacity for each system component and/or segment. OPERATION, MAINTENANCE and REPAIR The City of St. Cloud owns, operates and maintains the St. Cloud WWCS. Operation and maintenance costs are distributed proportionately by each city's capacity allocation. The costs are included in the annual rate review as stated in the Wastewater Treatment System Use Agreement. It is understood and agreed by the Contract User that the charges set forth in Article III of the Wastewater Treatment System Use Agreement do not include unanticipated or emergency capital repairs to the WWCS. The City shall, in consultation with SCAWAC, develop a regular monitoring and maintenance schedule for the WWCS. The schedule shall, at minimum, require a periodic rotation of inspections of the interceptors, lift stations, force mains and sewer mains that constitute the WWCS. The City shall be responsible for implementation of the schedule and a copy of the schedule shall be provided to the Contract User. The schedule shall be reviewed by SCAWAC at a minimum of every two (2) years, and changes recommended if appropriate. St. Cloud Sewer Interceptor System EX~IIBTT A Flow Allocations and Discharge Limitations Page 1 of ? The parties to this Agreement are responsible for their proportionate share of the costs related to the operating, maintenance and replacement of the WWCS. All costs are distributed proportionately based on the flow capacity allocations as shown in this EXHIBIT. ST. CLOUD SEWER INTERCEPTOR SYSTEM COMPONENTS METRO INTERCEPTOR • (UPPER METRO and LOWER METRO) ^ METRO PUMP STATION ^ METRO FORCEMAINS (30" and 42") The locations of the Upper and Lower Metro Interceptor, the Metro Pumpstation and the 30" and 42" Forcemains that discharge into the St. Cloud Wastewater Treatment Facility located at 525 60th Street South, St. Cloud, MN are illustrated in Figure 1. Upper Metro Interceptor Flow Allocations Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 28.49 18.41 35.48 St. Cloud 51.81 33.49 64.52 Total 80.30 51.90 100.00 Lower Metro Interceptor, Pump Station and Forcemains Flow Allocations Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity St. Jose h 8.10 ` 5.24 10.09 Sartell 9.32 e 6.02 11.61 Waite Park 16.21 g' 10.48 20.19 Sauk Ra ids 10.17 ° 6.57 12.66 St. Cloud 36.50 23.59 45.45 Total 80.30 51.90 100.00 PAN INTERCEPTOR ^ (UPPER PAN and LOWER PAN) The locations of the Upper and Lower Pan Interceptor are illustrated in Figure 2 and Figure 3. The Pan Interceptor System is divided at the intersection of Cooper Avenue and Division Street, the sewer upstream of this location is designated the Upper Pan Interceptor and the sewer downstream of this intersection is designated the Lower Pan Interceptor. St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 2 of 7 Upper Pan Interceptor Flow Allocations Community Allocated Flow Capacity cubic feet per second (ft3/sec Allocated Flow Capacity million gallons per day (MGD) Percent Allocated Capacity (% Sartell 9.32 a 6.02 24.38 Waite Park 2.32- 1.50 6.07 St. Cloud 26.59 _ 17.19 b9.55 Total 38.23 24.71 100.00 Lower Pan Interceptor Flow Allocations Community Allocated Flow Capacity cubic feet per second (ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity % St. Jose h 8.10 ` 5.24 18.69 Sartell 9.32 e 6.02 21.51 Waite Park 13.98 g 9.04 32.26 St. Cloud 11.93 7.70 27.54 Total 43.33 28.00 100.00 TRI-CITY INTERCEPTOR ^ TRI-CITY PUMPSTATION ^ FORCEMAIN (16") to TRI-CITY INTERCEPTOR ^ SAUK RIVER CROSSING The locations of the Tri-City Interceptor, the Tri-City Pumpstation, Sauk River Crossing and the 16" Forcemain from the Pumpstation to the Interceptor is illustrated in Figure 4. Tri-City Interceptor/Pumpstation/Forcemain Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity St. Jose h 8.10 ` 5.24 23.18 Waite Park 13.98 9.04 40.00 St, Cloud 12.87 8.31 36.82 Total 34.95 22.59 100.00 Sauk River Crossing Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity St. Jose h 8.10 ` 5.24 62.45 St. Cloud 4.87 3.15 37.55 Total 12.97 8.39 100.00 St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 3 of 7 LINCOLN AVENUE INTERCEPTOR The Lincoln Avenue Interceptor is divided into ten (10) sections as stated in the 1987 Lincoln Avenue Cooperative Construction Agreement. The sections are illustrated in Figure 5, Figure 6 and Figure 7. Lincoln Avenue Interceptor Flow Allocations Section 1; 21" on easement from Lincoln Ave to Apollo Ave Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity Sauk Ra ids 2.17 1.40 96.60 St. Cloud 0.08 0.05 3.40 Total 2.25 1.45 100.00 Section 2; 27" on A ollo Ave from 8d' St NE to 6d' St NE Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity Sauk Ra ids 1.90 1.23 95.30 St. Cloud 0.09 0.06 4.70 Total 1.99 1.29 100.00 Section 3; 30" on Apollo Ave from 6d' St NE to 3rd St Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 94.60 St. Cloud 0.23 0.15 5.40 Total 4.30 2.78 100.00 Section 4; 36" on Columbia Ave from 3rd St to allev south of St. Germain Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 50.50 St. Cloud 3.99 2.58 49.50 Total 8.06 5.21 100.00 St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 4 of 7 Section 5; 42" on Columbia Ave and 1St St SE from the alley south of St. Germain to Lincoln Ave Community Allocated Flow Capacity cubic feet per second (ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity (% Sauk Ra ids 4.07 2.63 47.30 St. Cloud 4.53 2.93 52.70 Total 8.60 5.56 100.00 Section 6; 42" on Lincoln Ave from 1St St SE to 4~' St SE Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 47.00 St. Cloud 4.53 2.93 53.00 Total 8.60 5.56 100.00 Section 7; 42" on Lincoln Ave and 7tb St SE from 4~' St SE to Riverside Dr Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 43.00 St. Cloud 5.35 3.46 57.00 Total 9.42 6.09 100.00 Section 8; Riverside Dr from 300' N of 7a' St SE to 13t1i St SE Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 40.00 St. Cloud 5.99 3.87 60.00 Total 10.06 6.50 100.00 Section 9; Riverside Dr from 13~' St SE to Mississippi River Crossing Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 40.00 St. Cloud 6.76 4.38 60.00 Total 10.83 7.01 100.00 St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 5 of 7 Section 10; Mississippi River Crossing from Riverside Dr to 3`d St SE Community Allocated. Flow Capacity cubic feet per second (ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.07 2.63 40.00 St. Cloud 7.39 4.78 60.00 Total 11.46 7.41 100.00 INTERCEPTOR TRUNK SYSTEM COMPONENTS QUEBECOR The location of the Quebecor Trunk Sewer System is illustrated in Figure 8. The Cities of St. Cloud and Sauk Rapids each have been allocated fifty percent (50%) of the 27" and 18" sewer line that starts south of T.H. 23 at the intersection of Benton County Road 1 and Front Street and ends at the intersection of Columbia Avenue and Benton County Road 75. The section that runs on Benton County Road 75 from Franklin Avenue to Columbia Avenue was installed in 1985; the remaining portion of the sewer lines described above was built as a joint project between the Cities of St. Cloud and Sauk Rapids in 1994. One hundred percent (100%) of the capacity of the sewer extension south of T.H. 23 is allocated to the City of St. Cloud. Quebecor Trunk System Flow Allocations Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Sauk Ra ids 4.34 2.81 50.00 St. Cloud 4.34 2.81 50.00 Total 8.68 5.62 100.00 38TH AVENUE and 540i AVENUE SEWER TRUNK SYSTEM The location of the 38`~ Avenue and 54~' Avenue Sewer Trunk Systems are illustrated in Figure 9. 38t" Avenue Flow Allocations Community Allocated Flow Capacity cubic feet per second ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Waite Park 0.67 0.43 46.74 St. Cloud 0.76 0.49 53.26 Total 1.43 0.92 100.00 St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 6 of 7 54t" Avenue Flow Allocations Community Allocated Flow Capacity cubic feet per second (ft3/sec Allocated Flow Capacity million gallons per day (MGD Percent Allocated Capacity Waite Park 1.56 1.01 56.11 St. Cloud 1.23 0.79 43.89 Total 2.79 1.80 100.00 REFERENCES Reference Page Document Name Document ID No. Date a 4 First Addendum to the Sewer Use Agreement between 4-11-00 the Ci of St. Cloud and the Ci of Sartell b 2 First Addendum to the Sewer Use Agreement between 4-12-00 the Ci of St. Cloud and the Ci of Sartell c 3 Sewer Use Agreement between the City of St. Cloud 8-24-92 and the Ci of Sauk Ra ids d 4 Sewer Use Agreement between the City of St. Cloud 8-24-92 and the Ci of Sauk Ra ids e 2 First Addendum to the Sewer Use Agreement between 9-6-01 the Ci of St. Cloud and the Ci of St. Jose h f 1 Summary of Design Flows -Waite Park Interceptor - 6-29-84 EPA No. C270853-02 - RCM No. 801036-2 g 3 Waite Park Interceptor Cooperative Construction 1-18-85 Agreement between the City of St. Cloud and the City of Waite Park h 3 Sewer Use Agreement between the City of St. Cloud 6-16-92 and the Ci of Waite Park i 4 Sewer Use Agreement between the City of St. Cloud 6-16-92 and the Ci of Waite Park j 3 Sewer Use Agreement between the City of St. Cloud 3-18-03 and the Ci of St. Au usta k 1-4 Operations and Maintenance Manual for the 1976 St. 1976 Cloud Wastewater Treatment Facili 1 Wastewater Collection and Treatment Facilities 1972 Comprehensive Report of the St. Cloud Metropolitan Area, Consoer, Townsend & Associates m Sewer System Infiltration/Inflow Analysis Report, 1974 Consoer, Townsend & Associates St. Cloud Sewer Interceptor System EXHIBIT A Flow Allocations and Discharge Limitations Page 7 of 7 FIgUi"e 1 : Upper & Lower Metro Interceptor System SAVER 6IRLH' f 13TH ~ ]]TN I ~I .TH / i ~ , r~' ~ ~ 1$iM ~I ~~RDYPL OAKS lt'h, ' ~ ) i / L 18TH x 9 15TH ', 16TH ~ ~~ ~ i61 -. 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N N ~ ¢ N c~d t~. ~ ~ N EXHIBIT C OF THE WASTEWATER TREATMENT SYSTEM USE AGREEMENT VVWTF POOL CAPACITY ARTICLE I DEFINITIONS Pool Capacity (PC): Pool Capacity is the reserve of wastewater treatment capacity to be constructed in the WWTF expansion project, but not to be initially allocated to any of the Project Partners. The total Pool Capacity to be constructed in the WWTF expansion project is 1,350,000 gallons per day (1.35 MGD). Pool Capacity Account (PCA): This is a special account to be established by the City of St. Cloud for the deposition of payments received from the Project Partners in consideration for the allocation of excess Pool Capacity as provided elsewhere in this Agreement. Funds that are deposited in this account shall be invested by the City of St. Cloud, with interest to accrue to the PCA. Pool Capacity Unit (PCU): A PCU is a unit of wastewater treatment capacity equal to 25,000 gallons per day (0.025 MGD) of domestic strength wastewater. Project Partners: Includes all of the parties to this Agreement (i.e. -the cities of St. Cloud, St. Augusta, St. Joseph, Sartell, Sauk Rapids and Waite Park) who are working together cooperatively to provide for the rehabilitation, upgrade and expansion of the St. Cloud Area Wastewater Treatment Facilities (WWTF). Review Committee: The purpose/role of this committee shall be to review and decide requests to purchase or reallocate Pool Capacity and to take related actions as necessary to fulfill the terms of this Agreement. This committee shall consist of the following members: The St. Cloud Public Utilities Director or her/his designee, the St. Cloud Public Services Director or her/his designee, a St. Cloud City Council Member, and one representative each to be appointed by the City Councils of St. Augusta, St. Joseph, Sartell, Sauk Rapids and Waite Park. The St. Cloud Public Utilities Director or designee (Director) shall act as chair of the Review Committee. Review Committee proceedings shall be governed by Roberts Rules. A simple majority vote of the full committee (i.e.- five affirmative votes) shall be required for approval of Committee actions. Wet Weather Period (WWP): A WWP is a time when the total monthly wastewater flow to the WWTF is elevated by ten percent (10%) or more above the average flow rate due to inflow and/or infiltration as determined by the St. Cloud Public Utilities Director and presented to the Review Committee. ARTICLE II POOL CAPACITY Initial Responsibility for Payment: Project Partners shall be responsible for the payment of a portion of the initial cost to construct Pool Capacity in accordance with the following table: TABLE"A" Initial Responsibility for Payment of Pool Capacity Construction Costs **Initial Share of Pool Capacity Costs** C~ Gals./day PCU's Percent St. Cloud 350,000 14 25.92% Sartell 225,000 9 16.67% Sauk Rapids 225,000 9 16.67% St. Joseph 225,000 9 16.67% Waite Park 225,000 9 16.67% St. Augusta 100,000 4 7.40% Total: 1,350,000 54 100.00% The payments to be made by each City for its proportionate share of Pool Capacity are included in the overall payments for expansion and rehabilitation of the WWTF as provided elsewhere in this Agreement. Value of Pool Capacity Units: The cost/value of each PCU shall be based on the actual bid prices and construction costs for the WWTF expansion. The value of the PCU shall be formally set by the Review Committee following receipt of bids and construction of the WWTF expansion project. The PCU value thusly set by the Review Committee shall be known as the "Initial PCU Value". At this time it is estimated that the Initial PCU Value will be approximately $100,000. The PCU value will be adjusted on January 15a' of each year by application of the following formula: Adjusted PCU Value = Initial PCU Value multiplied by the ratio of the Engineering News Record (ENR) Construction Cost Index at the time of adjustment divided by the ENR Construction Cost Index at the time of construction. Adjusted PCU Value = Initial PCU Value x (ENR2 / ENRl) Where ENR1 = ENR 20-City Construction Cost Index, General Purpose, at time of construction 2 and ENR 2 = ENR 20-City Construction Cost Index, General Purpose, at time of adjustment Qualifying Criteria to Apply for Pool Capacity: A City may, under any of the following circumstances, make application to purchase Pool Capacity: 1. Ordinary Growth - In the event that a City's monthly average flow during any period of six consecutive months, exclusive of WWP periods, exceeds 90% of the City's allocated capacity. 2. Annexation of Existing Developed Areas - In the event that a City is about to enter an annexation agreement that involves the provision of wastewater collection services to an existing developed area and the resultant increase in wastewater flow is expected to cause the City's monthly average flow to exceed 90% of that City's allocated capacity within the subsequent 24-month period. This provision does not apply to orderly annexation areas that exist as of the date of this Agreement. 3. Pending Commercial or Industrial Development - In the event that a City is about to enter an agreement that involves the provision of wastewater collection services to a proposed significant commercial or industrial development and the resultant wastewater flow increase is expected to cause the City's monthly average flow to exceed 90% of that City's allocated capacity within the subsequent 24-month period. Submission of Applications: 1. Applications to purchase Pool Capacity Units must be made in writing and submitted to the Director of Public Utilities for the City of St. Cloud (Director). Applications shall include background and supporting information as necessary to allow for the fair evaluation of the Application, or as requested by the Director or the Review Committee. 2. PCU requests shall be in whole units. Multiple PCU allocations may be requested/considered, however, if necessary to meet near term needs of existing developed areas that are in the process of being annexed and/or the needs of pending commercial or industrial development areas. Applications for Pool Capacity will not be accepted unless PC is available. If PC is not available, qualifying City's may apply for Lease Capacity, if available, as provided under another section of this Agreement. Consideration of Applications: 1. The Director shall, within 30 days of receipt, convene a meeting of the Review Committee to consider applications for Pool Capacity. The applicant City will be invited to the Review Committee meeting to present information and answer questions. 2. If the Review Committee fmds that an Application meets the qualifying criteria set forth herein, and the cumulative amount of this and all previous PCU's requested for purchase by the applicant City is less than or equal to that City's initial cost share of PCU's as shown in 3 If the Review Committee finds that an Application is consistent with the terms of this Agreement, but the cumulative amount of this and all previous PCU's requested for purchase by the applicant City exceeds that City's initial cost share of PCU's as shown in Table "A", then the Review Committee shall approve the Application subject to the payment of the amount indicated in the "Payment" section below. 4. If an Application is approved, PC will ordinarily be allocated in increments of one PCU at a time. If the Review Committee approves only a portion of such request, it shall be in whole units and accompanied by a written statement stating the reasons for such action. 5. If the Review Committee finds that an Application does not meet the qualifying criteria or does not otherwise comply with the terms of this Agreement, then the Committee shall deny the request. In this event the Review Committee shall prepare a written statement indicating the reasons for the denial. Payment for the Allocation of PCU: 1. An applicant City shall not be required to make payment for the allocation of PCU's that are cumulatively less than or equal to that City's initial share of PCU's. An applicant City shall be required to make payment in the following amount for the allocation of PCU in excess of that City's initial share of PCU as shown in Table "A": Payment = The payment amount shall be equal to the approved number of Pool Capacity Units in excess of a City's initial share of PCU, multiplied by the value of each Pool Capacity Unit as defined herein, multiplied by the factor 1.075 (7.5%). Payment = Excess PCU x Adjusted PCU Value x 1.075 3. The amount required herein shall be paid in full within 60 days of the date of approval by the Review Committee. Payment shall be made to the City of St. Cloud Public Utilities for deposit in the Pool Capacity Account. If payment is not received within the time specified, the Review Committee's action to allocate PCU to the applicant City shall be considered null and void. Distribution of Pool Capacity Account Funds: When the PC is exhausted, the balance in the Pool Capacity Account will be distributed to all City's who used less than their original PC allocation. This payment shall be in proportion to the number of PCU's that each such City paid for through its original PC allocation (as shown in Table "A"), but did not use. 4 Capacity Report: The Director shall annually provide a written report to the Project Partners summarizing the wastewater flow rates, allocated WWTF capacity, and allocated Pool Capacity for each City, and the status of the Pool Capacity reserve. ARTICLE III LEASE CAPACITY Application for Lease Capacity: If a City meets the qualifying criteria to apply for Pool Capacity, but all 54 PCU's have been allocated, then that City may make application to lease Unused Capacity, if available. Unused Capacity: In the event that a City makes application to lease Unused Capacity from other cities, then the Review Committee shall review the existing flow rates for all Cities. If at that time the Review Committee finds that the average flow for any City during any period of six consecutive months, exclusive of WWP periods, is less than 90% of that City's allocated capacity, then the Review Committee may declare a portion of that City's allocated capacity to be Unused Capacity The maximum amount of a City's allocated capacity that may be declared to be Unused Capacity shall be determined by multiplying a City's total allocated capacity by ninety percent (90%) and then subtracting that City's average monthly flow during the preceding six consecutive month period exclusive of WWP periods, and then rounding to the nearest whole number of PCU's. Unused Capacity will be removed from the City's allocated capacity until additional plant capacity is made available by expansion or other means and shall be assigned to the Unused Capacity Pool as described below. Unused capacity will be returned to a City when additional plant capacity is made available to all lease holders. A City may opt not to allow the reassignment of any portion of its allocated capacity to the Unused Capacity Pool, however, in this event, that City shall agree to work proactively with the other Project Partners in good faith to expand the capacity of the WWTF. Unused Capacity Pool: The Unused Capacity thusly determined from all Cities shall be assigned to the Unused Capacity Pool. Unused Capacity may then be subject to the Lease provisions set forth herein if so determined by the Review Committee. Lease of Unused Capacity: 1. If Unused Capacity from one or more cities has been declared by the Review Committee and a Ciry meets the qualifying criteria to apply for Pool Capacity then that City is eligible to lease Unused Capacity from the Unused Capacity Pool. 2. Unused Capacity will be allocated by the Review Committee in whole PCU's whenever possible up to the number of PCU's that exceeds the applicant City's demonstrated need according to the qualifying criteria for Pool Capacity. Unused Capacity thusly allocated to an applicant City shall also be known as Lease Capacity. 5 If the Review Committee finds that an Application does not meet the qualifying criteria or does not otherwise comply with the terms of this Agreement, then the Committee shall deny the request. In this event the Review Committee shall prepare a written statement indicating the reasons for the denial. Lease Terms: 1. Once allocated, Lease Capacity shall be assigned to the applicant City until any of the following events occur: a) the WWTF is expanded, b) the Review Committee determines that the applicant City no longer needs or qualifies for Lease Capacity, or c) this Agreement is otherwise lawfully terminated. 2. An applicant City shall be required to make annual payment in the following amount in consideration for Lease Capacity: Annual Lease Payment =Number of leased PCU's multiplied by the most recently determined PCU value multiplied by a factor of .OS (5.0%). Annual Lease Payment =Number of PCU's x Adjusted PCU Value x .050 3. The lease payment shall be made in a lump sum within 30 days of the approval of the lease by the Review Committee, and shall thereafter be paid annually within 30 days of receipt of invoice which will follow after the January 15~' PCU value adjustment. The initial lease payment will be pro-rated from the date of approval of the Lease Capacity to the end of the year. 4. Payments shall be made directly to the City of St. Cloud Public Utilities and deposited in the Lease Capacity Account. If payment is not received within the time specified, the Review Committee may take action to revoke the lease. Distribution of Lease Capacity Account Funds: The distribution of lease capacity account funds will be made annually. Funds will be distributed to those Cities for which an Unused Capacity determination has been made in proportionate to each City's share of the Total Unused Capacity Pool. Distributions shall be made within 30 days after the Lease Capacity Payments are due. ARTICLE IV DISPUTES AND REMEDIES In addition to the remedies provided in this Exhibit and Article IV of Wastewater Treatment System Use Agreement and those normal remedies provided by law for breach of contract, the parties specifically agree that this Agreement may be enforced in a Court of competent jurisdiction by an action to require specific performance. COOPERATIVE DESIGN Al'~D CONSTRUCTION AGREEMENT BETWEEN THE CITIES OF ST. AUGI~STA, ST. CLOUD, ST. JOSEPH, SARTELL, SAUK R4PIDS, AND VVAITE PARK Relating to: Participation by St. Augusta, St. Cloud, St, Joseph, Bartell, Sauk Rapids, and Waite Park in the costs to design and construct Phase l Rehabilitation, Upgrade and Expansion Improvements at the St. Cloud. ~'i'aste~i~ater Treatment Facility {VVVVTF) TH1S AGREEMENT is made and entered into by and between the City of St. Augusta, Minnesota; acting by and through its City Council, hereinafter referred to as "St. Augusta," the City of St. Joseph, Minnesota, acting by and through its City Council, hereinafter referred to as "St. Joseph," the City of Bartell, Minnesota, acting by and through its City Council, hereinafter referred to as "Bartell," the City of Sauk Rapids, Minnesota, acting by and through its City Council, hereinafter referred io as "Sauk Rapids," the Ciry of Waite Park, Minnesota, acting by and through. its City Council, hereinafter referred to as "Waite Park," and the City of St. Cloud, Minnesota., acting by and through its City Council, hereinafter referred to as "St. Cloud." The above-named Cities shall hereinafter be collectively referred to as "the parties." RECITALS In 2004, representatives of the parties participated in a process to select a consultant to provide professional services related to the expansion and rehabilitation of the St. Cloud Wastewater Treatment Facility (WWTF). At the conclusion of this process the representatives recommended selection of Black & Veatch Corporation (B&V) to provide facilities planning, design, bidding, and construction phase services. The St. Cloud City Council subsequently approved a contract with B&V to provide professional services in conjunction with the facilities planning process. Following selection of B&V, representatives of the parties participated in a three- yeaz process to develop a Facilities Plan for the upgrade, expansion, and rehabilitation of the WWTF. The completed Facilities Plan has been approved by the parties and has been submitted to the Minnesota Pollution Contro] Agency for review and approval. The Facilities Plan provides for the upgrade, expansion and rehabilitation of the WWTF in two phases, with the Phase 1 work to commence after necessary State authorizations are received, tentatively scheduled for 2009 (hereinafter referred to as the "Phase 1 Improvements"), and for Phase 2 work to commence in 2017, or as warranted. The purpose of this Agreement is to set forth the responsibilities of the parties with respect to implementation of the Phase 1 Improvements to the WWTF, including the cost allocations to be paid by each of the parties and the manner of payment. The estimated costs of the Phase 1 Improvements, and the distribut7on of those costs, as set forth in the Facilities Plan, are as follows: Table 1 Estimated Phase 1 R'~'VTF Jmprovement Costs City Design Cost Construction. Cost Total Improvement Cost % of Total Sartell $786,518 $13,269,883 ; $14,056,401 27.64 St. Cloud $980,613 $1.6,544,619 $17,525,232 ; 34.47 ~ Sauk Ra ids $341,032 $5,753,798 $6,094,830 11.99 St. Jos h $296,972 $5,01.0,424 $5,307,396 10.44 j St. Au usta $213,274 $3,598,302 $3,81 ],576 7.50 Waite Park $226,591 $3,822,974 $4,049,565 7.96 TOTALS $2,845,000 $48,000,000 $50,845,000 100.00 Table 2 Estimated Cost Allocations for the Phase 1 Construction Costs City Upgrade Cost Expansion Cost Rehabilitation Cost Total Construction Cost Bartell $2 420 055 $8,265,397 $2,5$4,432 $13,269 883 St. Cloud $9,231,757 $0 $7,312,862 $16,544,619 Sauk lta ids $1 727 039 $2,397,985 $1,628,774 $5 753 798 St. Jos h $979,022 $2,602,069 $1,429,332 $5,010,424 St. Au sta $418,009 j $2,449,006 $731,286 $3,598,302 Waite Park $1 155 026 $1,479 608 $1,188,340 $3,822,974 TOTALS $15,930,909 $17,194,066 $14,875,025 $48,000 000 'Costs are based on year 2017 flow projections for each City. ZCosts are based on year 2030 flov~~ projections for each City. The estimated cost allocations shown in Table i and Table 2 are for Phase 1 only and are based on the population and flow projections previously determined by each City as set forth in the Facilities Plan, and on January 2, 2010 mid-point of construction cost estimates. Facility needs and associated cost allocation methodology will be re-evaluated as necessary for the Phase 2 Expansion Project. It is anticipated that the planning process for Phase 2 will commence in year 2015. AGREEMENT It is, therefore, mutually agreed as follows: ARTICLE I -DESIGN St. Cloud shall enter into an agreement with B&V to provide professional services in conjunction with the design of the Phase 1 Improvements at the WWTF as identified under the Facilities Plan process as previously adopted and approved by the parties. St. Cloud shall perfozm all acts and functions necessary to cause said design work to be completed in a timely and satisfactory manner in accordance with local and State MPCA requirements, and the parties' timetable for completion of the Phase 1 Improvements. It is anticipated that the design phase work will commence in January 2008, and will be completed by December 31, 2008. Prior to the commencement of design phase work, all parties shall. deposit with the City of 5t. Cloud an amount equal to their respective estimated cast shares for design phase work as shown in Table 1 for the Phase 1 Improvements. St. Cloud shall deposit such funds in an interest bearing account (Design Phase Account). St. Cloud shall pay all design phase costs from this account. Upon completion of the design phase work St. Cloud shall prepare a final tabulation of design. phase costs and cost-shares based on the actual design phase costs incurred. If the amount of funds including accrued interest is found to be in excess of the final design phase costs, then St. Cloud shall distnbute the surplus funds to the parties in proportion to each parties contributions to the Design Phase Account. If the amount of funds, including accrued interest, is found to be less than the final design phase costs, then. St. Cloud shall invoice the parties for their respective proportionate share of the shortfall. In this event, the parties agree to pay their proportionate share of the shortfall to St. Cloud within 30 days of receipt of the invoice. The estimated cost of the design phase work for the Phase l Improvements at the WWTF is $2,845,000. St. Cloud shall enter into an agreement with B&V which contains a not to exceed clause for the design phase consistent with the foregoing estimate. Concurrently with the design phase work, St. Cloud shall prepare new Sewer U'se Agreements (SUA) to replace the SUAs and Addenda that currently exist between St. Cloud and the other parties. The new SUAs are subject to individual review, negotiation, and approval by each of the parties. A city reviewing a draft new SUA shall be responsible for the city's cost of review and negotiation, including each city's respective individual costs for legal counsel. The new SUAs, subject to negotiation, may incorporate all or portions of the provisions of the existing SUAs and Addenda, and may include new conditions as negotiated with the individual city participants or as required by current State and Federal regulations. The new SUAs shall include, subject to review and negotiation, all or portions of the draft Pool Capacity provisions previously developed by the St. Cloud Wastewater Advisory Commission (SCAWAC). In developing the new SUAs, the parties shall consider and may include provisions based upon the Facility Plan dated May 2006 for the WWTF. When completed, the new SUAs shall be submitted to the parties individually for review and approval by the respective City Councils of the parties. The new SUAs shall be fully approved by all parties to this agreement and executed before award of the construction contract as described in Article II below. The parties shall not unreasonably withhold approval of the new SUAs. ARTICLE II -CONSTRUCTION Bl' ST. CLOUD Following completion and. approval of the design phase work.; receipt of all. necessary local. (i.e, SUAs) and. state authorizations and permits, including authorization from the MPCA, and the approval of new SUAs with each individual city participant, St. Cloud intends to let a contract for construction of the Phase 1 Improvements. St. Cloud is willing to finance the cost of construction of the Phase 1 lmprovements under the terms and conditions set forth hereinafter. St. Cloud shall, in conjunction with the award and administration of the construction and engineering contracts for the WWTF Phase l Improvements, do and perform the following: (Item lA) Duly advertise, receive bids, tabulate bid results and prepare a recommendation to award the contract to the lowest responsible bidder. (Item 1 B) Distribute the bid results and the recommendation to award the contract to all. parties for review and approval. (Item 1C) The parties shall be asked to demonstrate concurrence with the decision to award the contract through adoption of appropriate "Resolutions of Support" by their respective City Councils. The parties shall not unreasonably withhold such approval. {Item 1D) After approval by all. parties, St. Cloud shall award the contract. (Item 2) Direct and cause the supervision and inspection of all construction and engineering functions necessary for the satisfactory construction of said Phase 1 Improvements; and (Item 3) Make such changes in plans or in the character of the work for said Phase 1 Improvements which are reasonably necessary to cause said Improvements to be in all things performed and completed in a satisfactory manner, in accordance with MPCA standards and other applicable codes and regulations, and to that end enter into any change orders or supplemental agreements for the performance of any extra work ox work occasioned by any necessary, advantageous or desirable changes in plans. However, SCAWAC will establish during the design phase of the project a Wastewater Treatment Facility Project subcommittee whose purpose is to facilitate project communication and develop procedures for providing comments and recommendations on change orders; and (Item 4) Do and perform all other acts and functions necessary to cause said Phase l Improvements to be completed in a satisfactory manner in accordance with MPCA requirements and other applicable codes and regulations. ARTICLE III- F~tJNDING OF CONSTRtiCTION COSTS St. Cloud agrees to finance th.e cost of the Phase I construction improvements under the following terms and conditions; (ltem 1) Each party shall be responsible for its proportionate share of costs related to The construction of the Phase 1 Improvements including construction engineering, testing, inspection and the cost of any change orders or supplemental agreements which may be necessary to complete the construction and also including the cost of any settlements of claims made with St. Cloud's contractors in connection with such construction. (Item2) The estimate of Phase 1 construction costs and cost allocations, as shown in Table 1, shall be updated following completion of the design phase work and again following receipt of construction bids. A final schedule of construction costs and cost allocations will be prepared following completion of construction. (Item 3) Prepay Option -Each parry shall be given an opportunity to pre- pay all ox a portion of its estimated cost share. Parties who intend to pursue this option shall notify St. Cloud of their intentions, including the dollar amount that they intend to prepay, at least 90 days prior to the date that construction funding is scheduled to be put in place. Pre-pay amounts shall be due and payable to St. Cloud on the same date that the construction bond is scheduled to be sold and/or construction loan is scheduled. to be established. (Item 4) St. Cloud agrees to secure construction phase funding for Phase l construction needs, less any prepay amounts received from the parties. Towards this end St. Cloud shall pursue financing via abelow-market rate loan under the revolving fund program for public wastewater facilities administered by the Minnesota Public Facilities Authority (PFA) together with the Minnesota Pollution Control Agency (MPCA). St. Cloud shall use said revolving loan fund to the extent that it may be available and advantageous. St. Cloud shall pursue and apply, to the extent available, any grant dollars available from the state and federal governments for projects of this nature. Any low- interest loans of grants received shall be offered to each party in the same proportion as each party's total phase one construction cost. The parties acknowledge and agree that this grant and loan sharing formula shall apply even if one or more grants or loans are designated exclusively for a particular category of cost (e.g. upgrade cost, expansion cost, or rehabilitation cost). St. Cloud shall issue a Utility Revenue Bond to finance any costs not covered by the revolving loan and grant dollars. Debt service on construction funding shall be structured. over a 20-year period. (Item 5) Debt Service Payments -Each party shall be responsible for the repayment of its proportionate share of construction phase funding to be secured by St. Cloud, including a proportionate share of bond issuance costs, finance fees and expenses and net interest costs. Debt service payments to St. Cloud shall be made in semi-annual installments over a 20-year period. St. Cloud shall calculate and distribute a schedule of payments at the time that the construction phase funding is put in place. This schedule may be revised upon completion of construction if necessary to account for differences, if any, between the estimated and final schedule of construction phase costs and debt. (Item 6) Acceptance -After approval by all parties of the construction contract, it is understood and as eed that the aforesaid computation and determination of the amount due from the parties for construction of the Phase 1 Improvements shall be final, binding and conclusive. It is further agreed that the acceptance by St. Cloud of the completed construction work shall be final, binding and conclusive upon the parties as to the satisfactory completion of said work. ARTICLE Il' -GENERAL PROViS10NS Section A. Governing Law 'This Agreement is made pursuant to, and shall be construed in accordance with the laws of the State of Minnesota.. Section B. Disputes and Remedies The parties agree as follows: a. Negotiation. When a disagreement over interpretation of any provision of this Agreement shall arise, the parties in dispute will direct staff members, as they deem appropriate, to meet at least one (])time at a mutually convenient time and place to attempt to resolve the dispute through negotiation. b. Mediation/Arbitration. When the parties to this Agreement are unable to resolve disputes, claims or counterclaims, or are unable to negotiate an interpretation of any provision of this Agreement, the parties hereto may mutually agree in writing to seek relief by submitting their respective grievances to mediation and/or binding arbitration. c. Adjudication. When the parties to this Agreement are unable to resolve disputes, claims or counterclaims, are unable to negotiate an interpretation of any provision of this Agreement or are unable to agree to submit their respective grievances to mediation or binding arbitration, or such action has not otherwise resolved the matter in dispute, either party to the dispute may seek relief through initiation of an action in a court of competent jurisdiction. In addition to the remedies provided for in this Agreement and any other available remedies at law or equity, in the case of a violation, default, or breach of any provision of this Agreement, the non-violating, non-defaulting, or non-breaching party may bring an action for specific performance to compel the performance of this Agreement in accordance with its terms. Section C. Modification/Amendment This Agreement shall not be modified, amended, or altered except in writing duly executed and adopted based. upon the resolution of the participating city councils. r Section D. Severability Un the event that any provision of this Agreement is determined and adjudged to be unconstitutional, invalid, illegal or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect, and the parties hereto shall negotiate in good faith and agree to such amendments or modifications of or to this Agreement ox other appropriate actions as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties hereto. Section E. Headings and Captions, Headings and captions are for convenience only and are not intended to altex any of the provisions of this Agreement. Section F. Scone of Agreement The terms, covenants, conditions and provisions of this Agreement do not constitute the entire agreement between the parties as they remain subject to subsequent approvals of the parties with respect to new SUAs and the award of a construction contract for the Phase 1 Improvements. ' Section G. Agreement Abnroval Before this Agreement shall become binding and effective, it shall be approved by resolution of the City Councils of each of the parties. Section H. Termination This Agreement shall be of indefinite term. It shall be terminated. only by the mutual consent of the parties given in writing, IN TESTIMONY WHEREOF, the parties have duly executed this Agreement by their duly authorized officers and caused their xespective seals to be hereunto affixed. CITY OF ST. AtrGUSTA (City Seal) By: Ma or Date: ~~l~ag City Cle k Date: ~ 9 o`d CITY OF ST. CLOUD (City Seal) "~'~ Mayor Date: ~S-i~-~C By: `~ ~ City Clerk Date: S~S~-~~'' CITY OF ST. JOSEPH (City Seal) By: Mayor Date: ~~~ ~]---E~b ty C rk /~`-4 CITY OF SARTELL (City Seal) By' ~~- -- Mayor Date: ~-~~ b~ City Clerk Date: ~l - ~..f -C~ ~' (City Seal) CITY OF SAUK City Clerk Date: y ,? S/• p CITY OE WRITE PARK (City Seal) By: ''"~-- Mayor Date: ~ - t Co -- d S By: City Clerk Date: ~-1 b Judy Weyrens From: Tracy Ekola [tekola@sehinc.comj Sent: Sunday, August 23, 2009 3:47 PM To: Terry Thene; Judy Weyrens; Randy Sabart Subject: AUGUST 20, 2009 SCAWAC MEETING Notes from August 20, 2009 SCAWAC Meeting Wastewater Treatment System Use Agreement Changes to the agreement (see Pat's email below) were recommended and forwarded to Flaherty and Hood. I reviewed these changes and sent a reply email to Pat regarding one question on the payments section. Pat suggested that all City's complete their final reviews of the Wastewater Treatment System Use Agreement and requested that the agreements be forwarded to each City Council for consideration/approval during the month of September Project Updates and Discussion The low bid for the Interceptor System Repair was $2.6 million (Estimate was $4.1 million). The Tri-City Lift Station is scheduled for completion in October. Photos of the site were handed out at the meeting. Pat indicated that Anton's felt that the building obstructed their sign, however it was noted that the main obstruction is from a tree not the lift station building. The NPDES permit for the St Cloud WWTF (which is required before construction can begin) is in draft review by the MPCA. Pat did not know the timeline for when it will be put on public notice, but indicated that it is being reviewed internally by the MPCA at this time and St Cloud is doing what they can to keep the process going. Next SCAWAC Meeting Next meeting is Sept 24, 2009. However, since there may be little to discuss there is a possibility the meeting will be canceled. Another meeting was scheduled for Nov 24, 2009 Tracy L. Ekola, PE ~ Principal SEH - St. Cloud, MN 320.229.4406 direct 320.250.6147 cell ----- Forwarded by Tracy Ekola/seh on 08/23!2009 03:31 PM ----- Tracy Ekola/seh 08/23/2009 03:28 PM The WWTF bids should be received by this date. To "Patrick Shea" <Patrick.SheaCa)ci.stcloud.mn.us> cc Subject Re: VWVTS-UALlll); page 74 Article 111 C. -did you mean to take out cBOD and TSS from Catagory B1? "Patrick Shea" <Patrick.Shea(u~ci.stcloud.mn.us> To "Jeremy Mathiasen" <Jeremv.Mathiasenro~bonestroo.com>, "John Henz" <jhenz(a~ci.sauk-rapids.mn.us>, "Ross Olson" <ROI.SON(c~ci.sauk-raoids mn.us>, 08/21/2009 04:28 PM "Roger Schotl" <rschotlro~ci.sauk-raoids.mn.us>, "Michael Williams" <Michael.Williamsna ci.stcloud.mn.us>, "STEPHEN GAETZ" <STEPHEN.GAETZCo~ci.stcloud.mn us>, 'Tracy Hodel" <Tracy.Hodel(~ci.stcloud.mn.us>, <jmarthaler(cilcitVOfstioseph.com>, <iwevrensta.~.cityofstioseph.com>, 'Terry Thene" <ttheneCiilcitvofstioseph com>, "Brad Borders" <bradC~sartellmn.com>, "Patti Gartland" <pattiCa~sartellmn.com>, <tekola(a~sehinc.com>, <twotzkaCa.sehinc.com>, "Bill McCabe" <bmccabe(a~staugustamn.com>, "Shaunna Johnson" <siohnson(a~waitepark.org>, ^Bill Schluenz" <wschluenz(a)waitepark.orq> cc <Jkahlhamer(~ci.sauk-rapids.mn us> Subject WI/VfS-UA Good Afternoon, Attached has the changesledits suggested at the 8/20/09 SCAWAC Meeting. A few notes: Article II, D,b & f: The changes create a process to formalize WWCS corrosion minimization and control that is reviewed by SCAWAC. This addresses Waite Park's concern about how and what they need to do in the future to comply with the agreement. Article II, J,a: Changes made to clarify flow monitoring of entry points. Article III, A: Added language about unanticipated or emergency capital repairs and language suggestions from Sauk Rapids on financial transparency. Article III, C, a: Corrected conveyance related issues (converted them to all flow based) Exhibit A: Added similar unanticipated or emergency repair language. Exhibit B: Added flexibility to weekend sampling to minimize cost. Will be cleaned up to fit on one page (I just noticed it was now on two pages). Exhibit C: Made two typo corrections, added page numbers. Will add page number to file page after comments are received. Exhibit E (copies of the previous agreements): Is not included at the advice of our joint legal council (Flaherty and Hood) and the City of St. Cloud City Attorney for the following reason: "The prior agreement has no force or effect as it is superseded by the new agreement. It will be confusing for the parties to attach them to the new agreement. Legally, the prior agreements do not exist once the new agreement is executed and the parties should not utilize them in the future." Please review and comment. My understanding is Sartell is planning on consideration of approval on 8/24. St. Cloud intents to consider on 9/14. Thank you again for you help in this process. Sincerely, Patrick Shea St. Cloud Public Utilities Director (320) 650-2814 patrick.shea@ci.stcloud.mn.us [attachment "WWTS-UA Combined 090821.pdf" deleted by Tracy Ekola/seh] 2