UTILIZATION OF SEWAGE TREATMENT FACILITIES
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CONTRACTUAL AGREEMENT FOR UTILIZATION OF SEWAGE TREATMENT
FACILITIES BETWEEN THE CITY OF CLEARWATER, FLORIDA, AND THE
CITY OF SAFETY HARBOR, FLORIDA
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THIS AGREEMENT is made and entered into this Q{o
day
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locat~d i Pine11as
, 1988, by and between the following municipal corporations
County, Florida, specifically, the CITY OF CLEARWATER,
FLORIDA, a municipal corporation (hereinafter, CLEARWATER), and the CITY OF
SAFETY HARBOR, FLORIDA, a municipal corporation (hereinafter, SAFETY HARBOR),
pursuant to the Florida Inter1oca1 Cooperation Act of 1969, Section 163.01,
Florida Statutes.
WIT N E SSE T H:
WHEREAS, CLEARWATER and SAFETY HARBOR have previously entered into
three separate agreements for the joint utilization of sewage transmission and
treatment facilities, two of which are dated October 22, 1976, and one dated
September 23, 1981; ,and
WHEREAS, CLEARWATER and SAFETY HARBOR mutually desire to revise and
consolidate these previous agreements into one new agreement; and
WHEREAS, SAFETY HARBOR presently has an allotment of one million
gallons per day maximum annual average of sewage treatment capacity at the
Clearwater Northeast Pollution Control Facility and its appurtenants (herein,
the "Facility"), and desires to obtain an additional three million gallons per
day of treatment capacity at the Facility; and
WHEREAS, the State of Florida has enacted legislation known as the
Grizz1e/Figg Advanced Waste Treatment Bill (Chapter 87-303, Laws of Florida),
which requires extensive Advanced Waste Improvements to the treatment plant
process at the Facility to be accomplished by October 1, 1990; and
WHEREAS, the said Advanced Waste Treatment Bill provides the
opportunity to expand treatment capacity at the Facility; and
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WHEREAS, arrangements must be made for the use and payment for said
improvements and treatment capacity expansion at the Facility; and
WHEREAS, SAFETY HARBOR has requested the temporary loan of an
additional one million gallons of capacity until such time as new capacity can
be added to the Facility; and
WHEREAS, provision must be made for future improvements and
modifications to the Facility;
NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
1. The three prior agreements for joint utilization of the Facility
between CLEARWATER and SAFETY HARBOR, two dated October 22, 1976, and the third
dated September 23, 1981, are hereby terminated in their entirety and are
wholly replaced by the terms of this agreement.
2. CLEARWATER has embarked on a program to provide for Advanced Waste
Improvements to the treatment and disposal processes of the Facility as
required by the State of Florida and which must be completed by October 1,
1990. The costs of these improvements are to be borne as described in
paragraph 7 below.
3. SAFETY HARBOR currently has an allotment of one million gallons
per day maximum annual average capacity at the Facility.
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4. CLEARWATER acknowledges that SAFETY HARBOR has requested an
additional three million gallons per day of sewage treatment capacity at the
Facility which when obtained would bring the total capacity permanently
allotted to SAFETY HARBOR to four million gallons per day maximum annual
average.
5. CLEARWATER will include in the design and regulatory permit
applications for said Advanced Waste Improvements the request for an additional
three million gallons of capacity for SAFETY HARBOR at the Facility.
6. CLEARWATER agrees to loan to SAFETY HARBOR an additional one
million gallons per day of sewage treatment capacity at the Facility. This
loaned additional one million gallons of sewage treatment capacity is an
addition to the currently allotted one million gallons of sewage treatment
capacity described in paragraph 3 above, for a total current sewage treatment
capacity of two million gallons per day maximum annual average. This loaned
additional one million gallons of sewage treatment capacity cannot be
terminated until the three million gallons of permanent additional sewage
treatment capacity allotted to SAFETY HARBOR as described in paragraph 4 and 5
above has been constructed. This temporary loan is also subject to the
reservations of capacity to each party as stated in paragraph 17 below.
7. SAFETY HARBOR shall bear an appropriate prorata share of all costs
for the improvements and additional capacity described in paragraphs 2, 4 and 5
above. The costs to be borne by SAFETY HARBOR shall include:
a. The direct costs of the new capacity for SAFETY HARBOR;
b. A proportionate share of the Advanced Waste Improvements; and
c. A proportionate share of the increased equity of existing
improvements related to the capacity increase.
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8. (a.) If SAFETY HARBOR should desire additional treatment capacity
at the Facility over and beyond the total of four million gallons per day
capacity presently requested, CLEARWATER will assist as lead agency in permit
and/or grant applications to obtain this additional capacity and to make all
reasonable efforts to assist SAFETY HARBOR to obtain all necessary permits and
approvals from various State and Federal regulatory agencies. SAFETY HARBOR
slmll bear all costs of applications for and implementation of any such
additional capacity.
(b.) If CLEARWATER requests additional capacity at the same time
as SAFETY HARBOR requests additional capacity, and if approval from regulatory
agencies is received for a capacity increase insufficient to meet the total
combined request of both CLEARWATER and SAFETY HARBOR, then the flow allotment
to each party will be made on a prorata basis. The proportionate share of the
costs of any such combined additional capacity allotted to each party shall be
in the same proportion as each party requested in the application for
additional capacity as submitted to and approved by the regulatory agencies.
9. In the future operation of the Facility, improvements and
modifications to the collection, treatment and disposal facilities may become
necessary due to changes in regulatory agency requirements for treatment
quality or effluent disposal, to decrease operational expenses, or for other
good cause. The total costs for these improvements and modifications shall be
shared by both CLEARWATER and SAFETY HARBOR on a prorata basis. The
proportionate share of costs for each party shall be the same as the percentage
of treatment plant capacity allotted to that party at the time of the
construction of the improvement or modification. SAFETY HARBOR shall be given
a written notification for fiscal planning at least six months in advance of
the financial commitment for any such improvements and modifications. SAFETY
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HARBOR shall continue under the terms of this agreement to have an equitable
interest in all sanitary treatment capacity of the Facility allocated to SAFETY
HARBOR. All authority and responsibility for the complete operation,
maintenance and modification of the Facility shall belong to Clearwater. The
parties agree that Safety Harbor has a present equitable interest in one
million gallons per day sewer treatment capacity and upon completion of the
improvements and modifications provided for herein shall have an equitable
interest of four million gallons per day sewer treatment capacity at the
Clearwater Northeast Pollution Control Facility.
10. SAFETY HARBOR agrees to pay to CLEARWATER a fee related to the
expenses attributable to operation, maintenance, transmission, renewal,
replacement and administration generated by the transmission, treatment and
disposal of wastewater contributed by SAFETY HARBOR, as described in paragraph
11 below.
11. (a) CLEARWATER agrees to establish a fee based upon actual use
by SAFETY HARBOR for treatment and disposal of wastewater at the Facility. The
initial fee shall be $686.47 per million gallons of sewage treatment and
disposal based on projected operating costs for the 1987-1988 fiscal year.
This initial fee will remain in effect until September 30, 1988, at which time
an estimated fee for the fiscal year 1988-1989 will take effect. This
estimated fee will be provided to SAFETY HARBOR prior to July 1, 1988, for
budgeting purposes. In subsequent years, during the term of this agreement, an
estimated fee for sewage treatment and disposal will be provided to SAFETY
HARBOR prior to July 1, for use during the upcoming fiscal year.
(b) A determination of actual costs of sewage treatment and disposal
during each fiscal year will be made as soon as practical following completion
of the audit for the fiscal year. In determining the actual costs for the
fiscal year, CLEARWATER shall compute its total annual cost of operation for
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wastewater treatment for the fiscal year and divide this sum by the total
annual millions of gallons of sanitary sewage treated during the fiscal year.
The wastewater treatment operating costs shall include those items shown in
Exhibit One attached to this agreement. In addition to the operating costs, a
five percent (5%) additional charge will be made for renewal and replacement
costs relating to the Facility and transmission lines. The total actual costs
of sewage treatment and disposal performed for SAFETY HARBOR shall be compared
to the total of estimated fees collected from SAFETY HARBOR by CLEARWATER
during the fiscal year.
(c) The difference between the estimated fee collected and the actual
costs for a fiscal year shall represent either an overpayment or an
underpayment and shall be payable between the two parties as the case may be,
as an equally adjusted monthly billing during the remaining periods of the
fiscal year in which the determination is made.
(d) In addition, SAFETY HARBOR agrees to pay the sum of Five Hundred
Ninety Four Dollars ($594.00) per month as its pro-rata share of debt service
for the existing one M.G.D. interim facility. This debt service payment is
based upon ten percent (10%) of the treatment plant construction costs and the
annual average debt service for the life of the revenue bond issued to
construct the interim facility. The payment on this indebtedness will continue
through the entire bond period ending August 1, 1999.
(e) A copy of the audited financial statements used to determine
actual operating costs shall be provided to SAFETY HARBOR.
(f) SAFETY HARBOR and CLEARWATER will each have the right to perform
an audit of the other party's records concerning flow volumes, operating cost,
building permits, subdivision permits and other information directly related to
this agreement.
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12. CLEARWATER agrees to bill SAFETY HARBOR for the fee(s) provided
for herein on a monthly basis. SAFETY HARBOR agrees to pay the above-mentioned
fees within thirty (30) days following receipt of the monthly bill. Each bill
shall itemize the amount of wastewater delivered from the SAFETY HARBOR system
to the Facility for the preceding month. The initial fee due under the terms
of this agreement shall be for the first full calendar month following
execution of this agreement, due and payable 30 days after the first of the
month.
13. SAFETY HARBOR agrees to maintain and to regulate by ordinance the
use of its sanitary sewer collection system, to minimize infiltration and
prevent harmful wastes from being deposited into its facilities, such as would
overload or cause damage to the Facility or interfere with the sewage treatment
process.
(a) Inasmuch as Hydrogen Sulfide is a particularly hazardous and
harmful waste to both operating personnel and equipment, SAFETY HARBOR agrees
to remove all presence of hydrogen sulfide from SAFETY HARBOR's sewage
delivered to the Facility. Where removal of hydrogen sulfide from SAFETY
HARBOR's sewage influent is performed by CLEARWATER, SAFETY HARBOR will be
billed for the cost of this removal on a monthly basis.
(b) 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 Facility. In providing adequate pre-treatment of waste,
SAFEry HARBOR shall be governed by the same standards applicable to
CLEARWATER. A copy of adopted SAFETY HARBOR ordinances shall be provided to
CLEARWATER.
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14. SAFETY HARBOR agrees to establish and maintain a record of all
Certificates of Occupancy for buildings, building permits issued and sewer
hook-up permits issued in the SAFETY HARBOR area, to prepare projections of
permit increases due to subdivision approval, and to provide regular monthly
reports to CLEARWATER of the aforesaid records and projections.
IS. This agreement shall be in existence for a period of thirty (30)
years, commencing on the
1st
day of
August
1988 , and
ending on the
31st
day of
July
2018 ,unless sooner
terminated as provided l,erein. The expiration or termination of this agreement
will in no way terminate the equitable interest of SAFETY HARBOR in its
allocated sanitary treatment capacity at the Facility.
16. 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, as the same may be amended from time to
time.
17. (a) CLEARWATER agrees that the amount of treatment capacity
assigned to SAFETY HARBOR by the provisions of this agreement will be honored
by CLEARWATER and that CLEARWATER will not infringe upon the capacity allotted
to SAFETY HARBOR whether SAFETY HARBOR may be contributing its full allotted
waste volume or not, and that whatever steps necessary to honor SAFETY HARBOR
capacity volume will be taken by CLEARWATER including the invocation of sewer
use moratoriums.
(b) SAFETY HARBOR agrees that it will not exceed its allotted waste
volume capacity provided by this agreement and will not infringe upon
CLEARWATER's capacity whether CLEARWATER may be contributing its full allotted
waste volume or not, or whether the treatment facility may be loaded at its
rated volume capacity or not, and that whatever steps necessary to preclude an
exceeding of its allotment will be taken by SAFETY HARBOR including the
invocation of sewer use moratoriums.
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18. CLEARWATER agrees to permit SAFETY HARBOR to discharge wastewater
either into the CLEARWATER transmission lines to be connected to the Facility,
if available, or directly into the treatment facility providing, however, no
connection shall be made until a correctly designed and installed flow meter is
ready for flow measurement at the connection. CLEARWATER shall determine the
point of connections into CLEARWATER's transmission lines for SAFETY HARBOR.
CLEARWATER agrees to maintain flow meters.
SAFETY HARBOR shall pay its pro-rata share of the cost of constructing
any transmission line to provide service for SAFETY HARBOR; or SAFETY HARBOR
may, at its own option, provide its own transmission line.
19. The parties in providing retail sanitary sewer services shall be
bound by the service area designated in Exhibit Two "2" to this agreement. The
parties shall have the exclusive right to provide retail sanitary sewer service
within the area allocated to such party and each party agrees not to compete
with the other as to the provision of such sewer service outside its
designated area. This agreement makes no provision for, or implication of, a
boundary designation for the annexation of real property into the corporate
limits of either Clearwater or Safety Harbor.
20. No provision of this agreement shall be construed in any way to
obligate Clearwater or Safety Harbor to provide sanitary sewer service to any
particular user within the respective retail service areas.
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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.
Approved as
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CITY ATTORN
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pITY I'W>IAGER
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nd correctness:
COUNTERSIGNED:
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EXHIBIT ONE (1)
Estimate of treatment costs in paragraph 4 of this contractual agreement for
the period of October 1, 1987, to September 30, 1988, is based on the City of
Clearwater Annual Fiscal Report on the Sewer Utility Fund Combining Statement
of Operations and Retained Earnings of year ending September 30, 1987, adjusted
for the projected operating period.
The operating expenses used for estimate preparation as listed in the report
are as follows:
Personal Services
Operating Materials and Supplies
Professional Fees
Communications
Transportation
Insurance
Utility Service
Repairs and Maintenance
Interfund Administrative Charge
Data Processing
Miscellaneous
These costs are to include administrative overhead, operating personnel,
maintenance, utilities of the plants, supplies necessary to operate the plant
and disposal of sludge and effluent.
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RETAIL SANITARY SERVI CE
AREA AGREEMENT
EXHIBIT TWO (2)
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LIMITS