Minutes 01/22/1974 - Laserfiche WebLink

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2:~ TUESDAY JANUARY 22, 1974 -- allocations of treatment plant capacity amongst all said parties. Adjustments in allocations shall be made, based upon determination of changed conditions affecting sewage flows from the respective areas, which adjustments in allocations amongst the several parties shall be reduced to writing, and approved by the governing bodies of each such parties. Similar review and redetermination of allocations shall be made at the request of any such party, so often as may be required. In the event of reallocation of capacities, appropriate compensation shall be determined in accordance with the terms of Section IX, infra. Disputes shall be resolved by a majority of a committee composed of one designated engineer appointed from each participating governmental subdivision, together with a third mutually acceptable engineer, if necessary. A party shall be deemed to need additional capacity allocation when it reaches or exceeds 90 percent of its allotted capacity allocation for a period of three consecutive months and additional capacity allocation shall be deemed to be available from the other party if it has not reached 90 percent of its allotted capacity allocation. -- D. Should the capacity of the City's sewage treatment plant be expanded beyond 6.0 mgd during the term of this contract, or, having once been so expanded be, later, further expanded, allocation to the Authority of a proportion of the resultant plant capacity shall again be mutually agreed upon, but such new total allocation to the Authority shall not be less than that quantity allocated to the Authority, expressed in mgd, of the total plant capacity immediately prior to such plant expansion. Determination and approval of all such new allocation shall be made and approved and disputes shall be resolved between parties as provided in Paragraph C., next preceding. IX. FUTURE CAPITAL IMPROVEMENTS: A. All future capital improvements which may be required to either the existing facilities or otherwise and which will be used initially and/or ultimately by both parties of this contract shall be financed proportionately by the participating parties in one of the manners herinafter described. B. In determining the proportionate financing and billing therefore, the following will be applied: 1. All costs of operation and maintenance shall be paid by the parties which actually participate in the use of the facility. These costs, which include general expense items as allowed and described in Paragraph IV. C., supra, shall be distributed on a pro rata basis using the actual sewage flows transported and/or treated by the facilities. Engineering estimates of the costs agreeable to all parties shall constitute the costs applicable to the first year of operation of the improvement. 2. Annual costs of debt service requirements, including principal and interest payments, shall be prorated to and paid by each of the participating parties in accordance with their respective percentages of financial obligation in the construction of the improvement. 3. In the event of additional costs, resulting from increased treatment requirements and/or excessive loadings, proportioning of such costs to the parties shall be in accordance with the provisions of Section IV, Paragraphs D and E, supra, respectively.