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SEWER AGREEMENT (2) '. ,,~ ., , , .. CONTRACTUAL AGREEMENT FOR UTILIZATION OF SEWER TREATMENT FACILITIES BETWEEN THE CITY OF CLEARWATER, FLORIDA, AND THE CITY OF SAFETY HARBOR, FLORIDA. THIS AGREEMENT is made and entered into this 1-~ day of ;J/?~~6 , A. D. 1976, by and between the following municipal corporations located in Pinellas County, Florida, specifically the CITY OF CLEARWATER, FLORIDA, a municipal corporation, and the CITY OF SAFETY HARBOR, FLORIDA, a municipal corporation, pursuant to the Florida Interlocal Cooperation Act of 1969, Section 163.91, Florida Statutes; WITNESSETH: WHEREAS, the City of Clearwater, Florida, proposes to construct a regional wastewater treatment facility having a capacity of eight (8) million gallons per day, with such treatment facility to be located on property owned by the City of Clearwater, such property being located adjacent to McMullen- Booth Road and State Road 580 in Clearwater, Florida; and WHEREAS, the treatment facility is to be constructed in accordance with criteria established by the State of Florida Department of Environmental Regulation and the United States Environmental Protection Agency; and WHEREAS, the City of Clearwater and the City of Safety Harbor realize that it is necessary for both municipalities that additional transmission, wastewater treatment and disposal facility for a sanitary sewage system be constructed; and WHEREAS, the City of Clearwater and the City of Safety Harbor recognize that it is in both municipalities' mutual municipal interest that they join together in the construction of such facility; and WHEREAS, the proposed City of Clearwater wastewater treatment facilities will have sufficient capacity to both process and dispose of waste- water received within the City of Clearwater and at the same time treat and dispose of an average of one (1) million gallons per day of wastewater pumped into the facility by the City of Safety Harbor; and -1- I 00-09'{ d--- " ~ I I " WHEREAS, both the City of Clearwater, Florida, and the City of Safety Harbor, Florida, desire to enter into this inter local agreement for the purpose of establishing a sewer system which shall run from the City of Safety Harbor and connect with the City of Clearwater Northeast Treatment Plant; NOW, THEREFORE, it is hereby agreed by and between the parties hereto that: 1. At such time as the City of Clearwater Northeast Wastewater Treatment Plant is available to receive wastewater for treatment and disposal, the City of Clearwater agrees to permit the City of Safety Harbor to pump a maximum annual average of one (1) million gallons per day of wastewater either into the City of Clearwater transmission lines to be connected to the Northeast Wastewater treatment plant or directly into the treatment facility. The City of Clearwater shall determine the use or uses of connection into the transmission lines for the City of Safety Harbor or the City of Safety Harbor may pump directly into the treatment facility. The point of connection to the system shall be at the most economical location for the mutual benefit of the parties. The City of Clearwater agrees to reserve to the City of Safety Harbor the wastewater treatment capacity described herein, namely, a maximum annual average of one (1) million gallons per day. The City of Clearwater will select the route of the transmission line which will run through portions of Safety Harbor. The City of Safety Harbor agrees to grant to the City of Clearwater utility licenses within existing City of Safety Harbor rights-of-way and agrees to cooperate and assist the City of Clearwater in obtaining easements for the main transmis sion line. The City of Safety Harbor may pay its pro rata share of the cost of constructing this main transmission line and tie into such line, or the City of Safety Harbor may at its own option provide its own transmission line. -2- " I I 2. The City of Safety Harbor agrees to remit to the City of Clearwater as its portion of the cost of construction of the Northeast Wastewater Treatment Plant that portion of such cost which equals the ratio of the City of Safety Harbor's requested capacity to the total capacity available for utilization in the Northeast system. It is estimated that the City of Safety Harbor's proportional share of the construction costs will be $600,000. 3. The $600,000 is Safety Harbor r s estimated pro rata share of the Northeast Wastewater Treatment Plant to include engineering costs, the cost of the primary and secondary portion of the plant, transmis sion lines from the plant to the disposal site, and final disposal method for the effluent. It is understood that construction costs attributable to the City of Safety Harbor shall be limited to its pro rata share of (1) that portion of the transmission line beginning at the point at which the City of Safety Harbor connects to the system; (2) the construction of the Northeast Wastewater Treatment Plant; and (3) the transmission to and final disposal of wastewater whether such disposal be by Deep Well Injection or Advanced Wastewater Treatment. The payment will be broken down into three phases based upon the primary- secondary portion of the plant, deep well testing, transmission mains and the final disposal system. The payments will be made prior to actual construction of such facilities, based upon actual bid prices, and be based upon the twenty-five per cent (250/0) local share if Federal funding is available. If the final actual construction costs are different, 'then the: coststo'S'afety Harbor will be adjusted appropriately at time of final payment to the contractor. 4. The City of Safety Harbor agrees to pay to the City of Clearwater a fee related to the expenses attributable to operation, maintenance, trans- mission, renewal, replacement and administration generated by the trans- mis sion, treatment and disposal of up to one (1) million gallons of wastewater pumped by the City of Safety Harbor. The fee shall consist of the following items as described in Paragraph 5 of this agreement. -3- I I 5. The City of Clearwater agrees to establish a fee based upon actual use by the City of Safety Harbor for treatment and disposal of waste- water. The initial fee shall be computed utilizing the City of Clearwater's total annual cost of operation of its existing sanitary sewage system, divided by the total annual millions of gallons of domestic sanitary sewage treated. The estimated fee to the City of Safety Harbor for the first year of this agreement, if deep well injection treatment and disposal is utilized, is $260.00 per million gallons of sewage treatment and disposal. If advance wastewater treatment is the disposal method utilized, the first year's estimated fee to the City of Safety Harbor will be $344.00 per million gallons of sewage treatment and disposal. In determining the above mentioned estimates, the City of Clearwater shall compute its total annual cost of operation for its then existing sanitation sewer system for the prior year and divide this sum by the total annual million gallons of domestic sanitary sewage treated. In any event, the estimated fee described above for the first year shall not vary more than ten per cent (10%) from the sums quoted above. The usage fee in the following years will be based on the annual operating costs of the Northeast Treatment Plant and related faci1ties. The Northeast Wastewater Treatment Plant operating expenses shall include but not be limited to such items as direct supervisors and personnel, maintenance, utilities of the plant and all supplies necessary to operate the plant. In addition to the usage fee, a five per cent (5%) charge of the fee will be made for renewal, replacement, for costs relating to the Northeast Wastewater Treatment Plant and transmission lines. Further, a charge of three per cent (3%) of the fee will be made for administration of the system. 6. The City of Clearwater agrees to bill the City of Safety Harbor for the fee provided for herein on a monthly basis. The City of Safety Harbor agrees to remit the fee within thirty (30) days from receipt of the bill. Each bill shall reflect the amount of wastewater delivered from the Safety Harbor system to the Northeast Wastewater Treatment Plant the preceding month. -4- "1 I I 7. The parties agree that in the event that anticipated Federal funding for the final disposal system is not made available, that the City of Safety Harbor may, at its option, cease to be a contributor and participator in the project. Should the City of Safety Harbor exercise the option described herein upon being made aware that Federal funding will not be granted, then the City of Safety Harbor shall be responsible for its proportionate share of the actual construction and related costs up to the date that the City of Safety Harbor asserts the option through providing written notice to the City of Clearwater. 8. The City of Safety Harbor agrees to maintain and in addition regulate by ordinance, the use of its sanitary sewage collection system to minimize infiltration and prevent harmful wastes from being deposited into its facilities, such as would overload or cause damage to the City of Clear- water Northeast Wastewater Treatment Plant, or interfere with the sewage treatment process. The City of Safety Harbor further agrees to require adequate pre_treatment of strong or harmful commercial or industrial wastes at the source of generation, prior to permitting such wastes to be discharged into its system for treatment and disposal at the Northeast Wastewater Treatment Plant. In providing adequate pre-treatment of waste, the City of Safety Harbor shall be governed by the same standards applicable to the City of Clearwater. 9. The City of Safety Harbor agrees to install Venturi type flow meters with an automatic flow recorder at all Safety Harbor pumping facilities that will be transmitting sanitary sewage to the City of Clearwater Northeast Wastewater Treatment Plant. The City of Clearwater will assume the responsibility of maintaining the flow meters, once installed. Both munici- palities shall have the right to enter and inspect the facilities and flow meters being utilized pursuant to this agreement for the purpose of determining the accuracy of such meters and the quantity of wastewater being delivered. .5_ .. Ii , , , 10. The City of Clearwater agrees each year of this agreement to reevaluate the cost or fee per million gallons, based on an annual audit of its accounts. If an audit discloses that the City of Safety Harbor has paid costs in excess of those fees established during the preceding fiscal year, it shall be entitled to a credit, which credit shall be pro-rated over the following twelve (12) month period. In the further event that reevaluation of such costs does result in a determination that the City of Safety Harbor has paid a sum less than the reevaluated cost per million gallons, then the City of Safety Harbor shall pay such additional sum pro-rated over the next twelve (12) month period. It is agreed that the anniversary date for such fee computation shall be June 1st. 11. This agreement shall be in existence for a period of thirty-five (35) years, commencing on the 22nd day of October , 1976 and ending on the 21st day of October , 20 11 , unless sooner terminated as provided herein. 12. In the event the City of Safety Harbor shall require capacity in excess of the one (1) million gallons per day maximum annual average provided herein, provided a three (3) year notification is given, the City of Clearwater shall make every effort to supply this requested capacity only if it is available and not committed or reserved to other sources. Costs related and requirements incurred to accomplish furnishing this additional capacity shall be borne by the City of Safety Harbor. 13. All disputes relating to the interpretation and performance of this agreement shall be resolved through arbitration procedures set forth in Chapter 682 of the Florida Statutes. -6- I, , ~. ' '- ,. "" .,j ~ , .., I I IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed by the proper officials on the day and year first above written. By Countersigned: ~~~ Mayor-Conuni 'ner F CLEARWATER, FLORIDA Att7tJ~.;t~z;~/ City Clerk Countersigned: CITY OF SAFETY HARBOR, FLORIDA ~"...~ ~ Mayor-Commissioner By D~ L. ~~ City Manager OJ - Attest: ./7 ,~ .., ~~~r?bC~ fl~",~~ / City 20k Approved as to form and cor rectne s s: -7-