Sewer Use Agreement Ordinance
SEWER USE AGREEMENT
CITY OF ____________ (A)
CITY OF _____________ (B)
THIS AGREEMENT, is made and entered into by and between the CITY A, a Minnesota
municipal corporation, herein called City A, and the CITY B, a Minnesota
municipal corporation herein called City B. In the event City B does not enter
into this Agreement with City A prior to January 1, ____ City A reserves the
right to renegotiate the agreement in its entirety.
City A owns and operates a Wastewater Treatment Plant, herein called “WWTP”,
for the treatment of sanitary sewage.
In compliance with a Consent Decree dated ______, between City A and the
Minnesota Pollution Control Agency, City A has constructed a sanitary sewage
collection and treatment facility.
City A received a construction grant for its WWTP, and in compliance
with the grant and the requirements of the Consent Decree has adopted a “Sewer
Use Ordinance” controlling the discharge of sewage into its system; and has
adopted a “Sewer Service Charge Ordinance" to assure that each recipient of the
wastewater treatment services pays its proportionate share of the cost of
operation, maintenance, and replacement of the waste treatment services.
City B desires to discharge sewage to City A for collection and treatment and
City A agrees to provide such services. In agreeing to transport its sewage to
City A for treatment, City B will abandon its plans to construct their own
NOW, THEREFORE, in consideration of the recitals and the other mutual
obligations of the parties herein expressed, City A and City B do agree as
For the purpose of the Agreement, the words, terms and abbreviations used herein
shall have the meanings, unless the context specifically indicates otherwise, as
set out and defined in Section ___ of the Code of Ordinances of City A,
“An Ordinance Establishing Charges for Users of the City A Wastewater Treatment
Plant Facilities”, (hereinafter referred
to as “Sewer Rate Ordinance”) and “An Ordinance Regulating the Use of Public
Sewers for the City A”, (hereinafter referred to as “Sewer Use Ordinance) as
amended from time to time.
For purposes of this Agreement, the term “Interceptor System” shall mean the
following parts of the WWTP:
City B Forcemain
2. Term and Terminations
City B shall have the right for as long as the City A operates its wastewater
treatment plant to use the WWTP for
treatment of its sanitary sewage as long as it complies with the provisions of
this Agreement or until this Agreement is terminated as otherwise provided
City B may terminate this Agreement at any time by twelve (12) months prior
written notice. There will be no reimbursement for the up front fee should City
B elect to terminate the Agreement.
The parties agree that if either party believes the effect of this Agreement is
inequitable or unfair to its citizens, such party may by sixty (60) days written
notice, or sooner if agreed in writing by both parties, request re-negotiation
of any part of this contract and the other party will in good faith, participate
in such negotiations.
3. Compliance with Applicable Laws
Prior to initial connection, City B shall adopt, maintain, and enforce the
following in such a manner as to at all times comply with the “Consent Decree:
1. A system of charges to assure that each recipient of the waste treatment
services within its
jurisdiction will pay its proportionate share of
the costs of operation and maintenance of WWTP (Sewer Rate Ordinance;
2. An Ordinance providing for sewer use containing provisions similar to Section
___ of the Code of Ordinance of the City A and ensuring that new sewers and
connections to the sewer system are properly designed and constructed (Sewer Use
In the construction, maintenance, and operation of its sewer system, City B will
comply with all applicable State & Federal laws.
City A shall enforce its Sewer Rate and Sewer Use Ordinances at the points of
discharge from City B into the City sewer system and in addition to its contract
and legal remedies shall have the right to refuse to accept or treat sewage in
violation of its Ordinances.
City B shall not allow any use from outside its corporate limits to
discharge sewage into its sewer system without the prior written approval of
4. Discharge Limitations
The parties recognize that there is limited capacity in the WWTP
and, therefore, agree that City B's right to discharge into the WWTP shall be
subject to the following limitations:
1. City B’s maximum flowrate to the WWTP shall not exceed 75,000
gallons per day, unless suitable arrangements have been made by City B to
purchase additional capacity in these conveyance facilities from City A.
2. Any new connections to the WWTP shall be prohibited unless
sufficient capacity is available in all downstream conveyance and treatment
facilities including, but not limited to, capacity for flow, CBOD and TSS, as
determined by City A.
3. Any private industrial user of the system will be covered by a separate
pre-treatment industrial Agreement according to the rules and regulations
approved by MPCA.
In view of the discharge limitation established above, City A agrees to inform
City B of any planned expansion of the conveyance or treatment facilities which
serve City B, and to offer to include additional space for City B in said
facilities subject to City B’s participating on a proportionate basis in the
cost of the expansion.
5. Measuring Devices
City B agrees to provide, install, and maintain accurate sewerage metering
devices at locations designated by City A engineer and in a manner which will
insure the volume of all sewage flowing from City B to the WWTP is
measured at the point where its sewage leaves City B and at the point where is
connects to the City A’s WWTP. The measuring devices shall be equipped with an
automatic flow measuring and recording device. In addition, City B shall install
auto sampling devices which shall be capable of sampling according to set time
intervals, time impulse, and/or proportionate to f low.
The records and reports from such measuring devices, will be kept by City B and
made available to City A for billing and analysis procedures.
In the event of failure of such measuring devices for the purpose of determining
rates pursuant to this Agreement, it will be assumed that during the period of in operation of the measuring device the flow will be the average
daily volume during the same time period in the preceding year.
City B shall provide for at least one annual inspection and calibration of its
flow measuring devices by an independent testing company satisfactory to City
A. A certified copy of the inspection and test results shall be provided to the
City A promptly after completion.
City A may inspect such measuring devices at any reasonable time and in the
event such a device fails and is not repaired within a reasonable time by City
B, then City A may repair the same and City B will pay City A its reasonable
costs and expenses for said repair.
6. Testing and Sampling
Sampling shall be carried out by customarily accepted methods. “CBOD” and “TSS”
shall be done at least monthly with 24-hour composite samples.
Both parties will cooperate in performing such additional tests and sampling as
may be required by the State or Federal Agency having jurisdiction in the
Testing and sampling required by this Agreement will be performed monthly at the
expense of City B at a state approved and certified laboratory.
In addition, City A shall have the right at all reasonable time to inspect,
examine, sample, and test all sewers and sewage of City B.
Both parties will at all times use reasonable and diligent care to keep their
sewer systems and water pollution control facilities in good operating
All parts of the WWTP and all records and accounts relating to the
matters covered by this Agreement and the applicable sewer ordinances, shall be
made available for inspection by either party at any reasonable time.
Both parties will cooperate with each other in the enforcement of their sewer
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 it control.
8. Charges and Payments
Thirty (30) days before anticipated connection, City B shall pay City A 10.56%
of the amount of debt service bonds paid to date by City A. If payment by City B
is made prior to January 1, ____, the amount would be $______. This amount
represents City B’ s proportionate share of the present worth of the “local”
cost of the utilized portions of the WWTP.
City B shall pay City A for the use of the WWTP it proportionate
share of the bond payments, operation, maintenance and replacement cost of the
WWTP in monthly installments based on the actual flow and loading discharge to
the WWTP and the operating and debt service costs that are existing at that
time. Specifically excluded are costs associated with maintaining City A’s sewer
The unit cost for City B's proportionate share shall be:
FLOW FROM CITY B x 1/3 Total Operation Cost TOTAL FLOW (Q)
CBOD FROM CITY B x 1/3 Total Operation Cost TOTAL CBOD (C)
TSS FROM CITY B x 1/3 Total Operation Cost TOTAL TSS (SS)
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 A WWTP during the preceding year.
C = Total annual pounds of
CBOD, in 100 pound units, measured at the City A WWTP during the
SS = Total annual pounds of TSS, in 100 pound units measured at the
City A WWTP during the
In addition to the above charges, City B agrees to pay in twelve (12) monthly
payments a General Fund Administration charge of four percent (4%) of all
charges annually levied to the utility for General Fund Administration costs.
The cost for preparation of this contract such as: engineering fees to
evaluate the WWTP to upgrade the effluent limitations, accountant, and
attorney fees shall be assessed to City B in (20) twenty equal installments with
the total not to exceed $_________.
The charges so computed shall be billed to City B following the last day of each
month and shall be payable within thirty (30) days.
Effective date for rate adjustments under the terms of this Contract shall
become effective on January 1 of the following year.
9. Annual review of Unit Costs
An annual review shall assemble, tabulate, and distribute data in accordance
with the following steps:
Step 1: City A will tabulate the projected annual review requirements
in the table format that clearly demonstrates which budget amounts are to be
shared in proportion to flow and load by WWTP users, and which amounts are the
sole responsibility of a particular contract.
Step 2: City A will tabulate annual wastewater flow and load data for
the WWTP, for the immediately preceding 12 month period. The data shall contain
the following information:
Total Flow: In units of million gallons per year.
Average Daily Flow: In MGD,
CBOD, and TSS in units of mg/l.
Total CBOD: In units of mg/l and lb/year.
Total Suspended Solids: In units of mg/l and lb/year.
Flow from each contract customer: In units of million gallons/year.
CBOD from each contract customer: In units of mg/l and lb/year.
Total Suspended Solids from each contract customer: In units of mg/l and
Step 3: Annual budget costs shall be distributed to three cost
causative elements, in accordance with the following criteria:
Category Flow CBOD TSS
33—1/3% 33—1/3% 33—1/3%
Step 4. Unit costs shall be computed by applying the data assembled in Steps 1
through 3, of the formulas presented above to paragraph “8d” herein.
Step 5. City A will share copies of the above data with City B by October 1 of
each year and actual budgets or audits when requested by City B.
Step 6. With respect to City B, City A will use the rates derived by the
preceding steps or as adjusted using the previous three (3) months information.
10. Future Construction
City B shall be responsible for its proportionate share of those future capital
expenditures attributable to upgrading the existing WWTP. City B shall not share
in capital costs associated with expanding the capacity of the WWTP unless City
B has made prior arrangements with City A to purchase additional capacity in the
WWTP except that in any case City B shall pay all the costs associated with
bringing the pumping capacity of the City B force main up to the design level.
In addition to the remedies provided in this 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.
At any time City B defaults in making payments due at a specific time, an
interest rate (in accordance with current ordinance) shall be added to the
12. Infiltration and Inflow
Parties will continue to cooperate with all applicable agencies and in good
faith attempt to eliminate infiltration and inflow presently existing in their
IN WITNESS WHEREOF, the Council of City A, by appropriate resolution duly
adopted, has caused this Agreement to be executed in its corporate name by its
Mayor and City Clerk/ Treasurer and its corporate seal to be affixed hereto; and
the Council of City B 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 to be affixed hereto, the date and year first above written.
THE CITY OF CITY A THE CITY OF CITY B
BY: ______________________ BY: ________________
BY: ______________________ BY: ________________