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Sewer Use Agreements (3)MEMORANDUM August 12, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Industrial Sewer Use Agreements Water Pollution Control Plant Manager Paul Horsfall recommends City Council approval of Sewer Use Agreements with three industries in Dubuque; Rousselot (Sanofi Bio Industries), Swiss Valley Farms and Inland Protein Corporation. The contracts are for a period of four years and will expire on June 30, 2007. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi~n~ge~n~ MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Paul J. Horsfall, Water Pollution Control Plant Manager CITY OF DUBUQUE, IOWA MEMORANDUM August 5, 2003 TO: Michael C. Van Milligen, City Mana~r~ ~...- FROM: Paul J. Horsfall, WPCP Manager~--~-'--~ SUBJECT: Industrial Sewer Use Agreements INTRODUCTION: The purpose of this memorandum is to ask your review and approval of the attached Sewer Use Agreements with the three industries in Dubuque; Rousselot (Sanofi Bio Industries), Swiss Valley Farms and Inland Protein Corporation. DISCUSSION; The City previously held long term sewer use agreements with Rousselot (Sanofi Bio Industries), Swiss Valley Farms and Inland Protein Corporation. These agreements had expired and negotiations for new agreements were completed very late in the spring of this year. Attached are the sewer use agreements that have been negotiated with these industries. The agreements have been reviewed and signed by the appropriate individuals from each of the three industries. The format of the new agreements is not significantly different than that used in the previous agreements. The main difference is that all industries will now be treated equally with the same rates and the same diminishing discounts. The new agreements call for an immediate 8% increase in sewage rates for flow, CBOD5 and total suspended solids and decreases the discount rate from the existing 12% to 4% allowing for an approximate 18% increase in sewage rates over the life of the agreements. The contracts are for a period of four years, expiring June 30, 2007. During the negotiation phase, two of the three industries were concerned with the agreements applicable effluent limitations not allowing them to expand operations during the life of the agreement. To address these concerns, the applicable effluent limitations were adjusted upwards based on the industry and their possible expansion plans. These changes are not significant and still allow for industrial expansion in Dubuque. All the contracts incorporate a clause that will allow the City to meet Federal and State guidelines for participation in funding programs should the need and opportunity arise. This will allow the City Council, at their discretion, to place equitable sewer rates for flow, CBOD5 and total suspended solids in the City's Code of Ordinances at a later date. This will have a minimal impact on the industrial users should the City Council adapt the equitable rate structure. RECOMMENDATION: I recommend that we ask the City Council to authorize you to execute the three Sewer Use Agreements with Rousselot (Sanofi Bio Industries), Swiss Valley Farms and Inland Protein Corporation at the August 18, 2003 Council meeting. SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between Inland Protein Corporation ("Company") and the City of Dubuque, Iowa, ("City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resources permit to process municipal and industrial wastes and to discharge treated effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 525 Julien Dubuque Drive in Dubuque, Iowa, and is desirous of entering into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection Aqency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized of-ficial of said Agency. C BOD5 Carbonaceous Biochemical Oxygen Demand (C BOD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). TSS or Suspended Solids Suspended Solids. The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Surcharges Charges to be paid by Company based on hydraulic loading, BOD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. POTVV Publicly Owned Treatment Works (POTW). City's treatment works as defined by Section 212 of Act (33 U.S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "POTW" shall include any sewers that convey wastewater to the POTW from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTW in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiring the making of changes to the POTVV that City determines are material, it shall give Company wdtten notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in wdting of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice. If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTVV in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement. TERM OF AGREEMENT. The term of this Agreement shall commence on January 1, 2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts indicated below. In the absence of sewer use rates for flow, CBOD5 and Total Suspended Solids, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow - $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. (b) All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. (c) The following discounts shall be given the charges for Flow, CBOD5, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: January 1, 2003 through June 30, 2004 12% July 1, 2004 through June 30, 2005 8% July 1,2005 through June 30, 2006 4% July 1,2006 through June 30, 2007 4% (d) Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) Invoices shall be issued by City to Company on the 15th day of each month for the prior month's service. (0 Invoices shall be payable by Company not later than 15 days after the date of issuance. APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTW shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER MONTHLY MAXIMUM MAXIMUM DAILY Flow C BOD5 TSS 10.00 Million Gallons 78,000 Pounds 78,000 Pounds 500,000 Gallons 5,000 Pounds 4,000 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 500,000 gallons, 5,000 pounds of C BOD5 or 4,000 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical. (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met during the ten day pedod, no further action shall be taken by city. (b) A sumharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Surcharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (are) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastewater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15th of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. (d) Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical frequencies shall be determined by City and accomplished by City's representatives. All samples taken by City will be divided with Company, if requested by Company. (e) City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in writing not less than fifteen (15) days following receipt of notification. (f) When noncompliance is determined by City's Water Pollution Control Plant Manager, and there is no written request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. (g) If Company does not accept City's testing results, on wdtten request by Company, City shall submit samples to the University of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. (i) The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any current sampling and testing period by City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. 11. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industrial Pretreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended during the term of this Agreement. 12. LIABILITY LIMITATIONS. It is not contemplated that there will be any interruption to sanitary sewer service as herein contracted for, but if for any reason, including but not limited to court order, or physical 13. 14. 15. 16. 17. conditions beyond the control of City; City is unable to fumish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not contemplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY-TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of written notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, omi or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content of the paragraphs themselves. IN WITNESS WHEREOF, the parties have caused this instrument to be executed on day and year as written below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: INLAND PROTEIN CORPORATION By: Date: SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between Inland Protein Corporation ("Company") and the City of Dubuque, Iowa, ("City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resources permit to process municipal and industrial wastes and to discharge treated effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 525 Julien Dubuque Drive in Dubuque, Iowa, and is desirous of entering into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection Aqency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized official of said Agency. C BOD5 Carbonaceous Biochemical Oxygen Demand (C BCD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). TSS or Suspended Solids Suspended Solids. The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Surcharges Charges to be paid by Company based on hydraulic loading, BCD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. POTVV Publicly Owned Treatment Works (POTW). City's treatment works as defined by Section 212 of Act (33 U.S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "POTVV" shall include any sewers that convey wastewater to the POTVV from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTVV in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiring the making of changes to the POTVV that City determines are material, it shall give Company written notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in wdting of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice. If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTW in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement. TERM OF AGREEMENT. The term of this Agreement shall commence on January 1,2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts indicated below. In the absence of sewer use rates for flow, CBOD5 and Total Suspended Solids, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow - $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. (b) All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. (c) The following discounts shall be given the charges for Flow, CBOD5, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: January 1, 2003 through June 30, 2004 12% July 1, 2004 through June 30, 2005 8% July 1, 2005 through June 30, 2006 4% July 1, 2006 through June 30, 2007 4% (d) Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) Invoices shall be issued by City to Company on the 15th day of each month for the prior month's service. (0 Invoices shall be payable by Company not later than 15 days after the date of issuance. APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTW shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER MONTHLY MAXIMUM MAXIMUM DALLY Flow 10.00 Million Gallons 500,000 Gallons C BOD5 78,000 Pounds 5,000 Pounds TSS 78,000 Pounds 4,000 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 500,000 gallons, 5,000 pounds of C BOD5 or 4,000 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical. (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met during the ten day period, no further action shall be taken by city. (b) A surcharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Surcharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (are) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastewater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15th of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. (d) Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical 13. 14. 15. 16. 17. conditions beyond the control of City; City is unable to furnish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not contemplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY- TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of written notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, oral or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content of the paragraphs themselves. frequencies shall be determined by City and accomplished by City's representatives. All samples taken by City will be divided with Company, if requested by Company. (e) City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in writing not less than fifteen (15) days following receipt of notification. (f) When noncompliance is determined by City's Water Pollution Control Plant Manager, and there is no wdtten request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. (g) If Company does not accept City's testing results, on wdtten request by Company, City shall submit samples to the University of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. (i) The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any current sampling and testing period by City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. 11. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industrial Pretreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended during the term of this Agreement. 12. LIABILITY LIMITATIONS. It is not contemplated that there will be any interruption to sanitary sewer service as herein contracted for, but if for any reason, including but not limited to court order, or physical IN WITNESS WHEREOF, the parties have caused this instrument to be executed on day and year as written below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: INLAND PROTEIN CORPORATION SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between ROUSSELOT ("Company") and the City of Dubuque, Iowa, ("City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resources permit to process municipal and industrial wastes and to discharge treatbd effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 2350 Kerper Boulevard in Dubuque, Iowa, and is desirous of entering into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection A,qency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized official of said Agency. C BOD5 Carbonaceous Biochemical Oxygen Demand (C BOD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). TSS or Suspended Solids Suspended Solids. The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Surcharges Charges to be paid by Company based on hydraulic loading, BOD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. POTVV Publicly Owned Treatment Works (POTW}. City's treatment works as defined by Section 212 of Act (33 U.S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "POTW" shall include any sewers that convey wastewater to the POTW from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTW in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. · EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiring the making of changes to the POTW that City determines are material, it shall give Company written notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in writing of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice. If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTW in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement. TERM OF AGREEMENT. The term of this Agreement shall commence on January 1, 2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts indicated below. In the absence of sewer use rates for flow, CBOD5 and Total Suspended Solids, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow - $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. (b) All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. (c) The following discounts shall be given the charges for Flow, CBOD5, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: January 1, 2003 through June 30, 2004 12% July 1,2004 through June 30, 2005 8% July 1, 2005 through June 30, 2006 4% July 1, 2006 through June 30, 2007 4% (d) Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) Invoices shall be issued by City to Company on the 15th day of each month for the prior month's service. (f) Invoices shall be payable by Company not later than 15 days after the date of issuance. APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTVV shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER MONTHLY MAXIMUM MAXIMUM DALLY Flow C BOD5 TSS 18.00 Million Gallons 180,000 Pounds 165,000 Pounds 800,000 Gallons 9,000 Pounds 8,000 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 800,000 gallons, 9,000 pounds of C BCD5 or 8,000 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical. (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met during the ten day pedod, no fur[her action shall be taken by City. (b) A surcharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Surcharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (are) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastewater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15th of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. (d) Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical 11. 12. frequencies shall be determined by City and accomplished by City's representatives. All samples taken by City will be divided with Company, if requested by Company. (e) City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in wdting not less than fifteen (15) days following receipt of notification. When noncompliance is determined by City's Water Pollution Control Plant Manager, and there is no written request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. (g) If Company does not accept City's testing results, on written request by Company, City shall submit samples to the University of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. (i) The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any currant sampling and testing period by City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industrial Pretreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended dudng the term of this Agreement. LIABILITY LIMITATIONS. It is not contemplated that there will be any interruption to sanitary sewer service as herein contracted for, but if for any reason, including but not limited to court order, or physical 13. 14. 15. 16. 17. conditions beyond the control of City; City is unable to furnish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not contemplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY-TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of written notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, oral or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content of the paragraphs themselves. IN WITNESS WHEREOF, the par[les have caused this instrument to be executed on day and year as wdtten below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: ROUSSELOT/~ By: Date: SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between ROUSSELOT ("Company") and the City of Dubuque, iowa, (',City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resources permit to process municipal and industrial wastes and to discharge treated effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 2350 Kerper Boulevard in Dubuque, iowa, and is desirous of entering into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection Aqency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized official of said Agency. C BOD5 Carbonaceous Biochemical Oxygen Demand (C BOD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). TSS or Suspended Solids Suspended Solids. The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Surcharges Charges to be paid by Company based on hydraulic loading, BOD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. POTVV Publicly Owned Treatment Works (POTW). City's treatment works as defined by Section 212 of Act (33 U,S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "PO'lAN" shall include any sewers that convey wastewater to the PO-I-VV from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTVV in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiring the making of changes to the POTVV that City determines are material, it shall give Company written notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in writing of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice. If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTVV in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement. TERM OF AGREEMENT. The term of this Agreement shall commence on January 1, 2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts (b) (c) indicated below. In the absence of sewer use rates for flow, CBOD5 and Total Suspended Solids, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow - $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. The following discounts shall be given the charges for Flow, CBOD5, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: January 1, 2003 through June 30, 2004 12% July 1, 2004 through June 30, 2005 8% July 1, 2005 through June 30, 2006 4% July 1, 2006 through June 30, 2007 4% (d) Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) Invoices shall be issued by City to Company on the 15m day of each month for the prior month's service. (f) Invoices shall be payable by Company not later than 15 days after the date of issuance. APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTW shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER MONTHLY MAXIMUM MAXIMUM DALLY Flow 18.00 Million Gallons 800,000 Gallons C BOD5 180,000 Pounds 9,000 Pounds TSS 165,000 Pounds 8,000 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 800,000 gallons, 9,000 pounds of C BOD5 or 8,000 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met during the ten day period, no further action shall be taken by city. (b) A surcharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Surcharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (are) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastawater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15th of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. (d) Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical 11. 12. frequencies shall be determined by City and accomplished by City's representatives. All samples taken by City will be divided with Company, if requested by Company. (e) City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in writing not less than fifteen (15) days following receipt of notification. (f) When noncompliance is determined by City's Water Pollution Control Plant Manager, and there is no written request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. (g) If Company does not accept City's testing results, on written request by Company, City shall submit samples to the University of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. (i) The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any current sampling and testing period by City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industrial Pretreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended dudng the term of this Agreement. LIABILITY LIMITATIONS. It is not contemplated that there will be any interruption to sanitary sewer service as herein contracted for, but if for any reason, including but not limited to court order, or physical 13. 14. 15. 16. 17. conditions beyond the control of City; City is unable to furnish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not contemplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY-TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of wdtten notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, oral or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content of the paragraphs themselves. IN WITNESS WHEREOF, the parties have caused this instrument to be executed on day and year as written below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: ROUSSEL ,0/ .__ By: Date: SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between Swiss Valley Farms Company ("Company") and the City of Dubuque, Iowa, ("City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resources permit to process municipal and industrial wastes and to discharge treated effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 3510 Central Avenue in Dubuque, Iowa, and is desirous of entering into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA ..Environmental Protection Aqency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized official of said Agency. C BCD5 TSS or Suspended Solids Surcharges POTW .Carbonaceous BiochemiCaI Oxyqen Demand .(C BCD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). ~The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Charges to be paid by Company based on hydraulic loading, BCD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. Publicly Owned Treatment Works (POTW). City's treatment works as defined by Section 212 of Act (33 U.S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "PO'I'W" shall include any sewers that convey wastewater to the POTVV from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTVV in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiting the making of changes to the POTVV that City determines are material, it shall give Company written notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in writing of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice, If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTVV in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement; TERM OF AGREEMENT. The term of this Agreement shall commence on January 1, 2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts (b) indicated below. In the absence of sewer use rates.for flow, CBOD5 and Total Suspended SolidS, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow- $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. (c) The following discounts shall be given the charges for Flow, CBOD5, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: (d) January 1,2003 through June 30, 2004 12% July 1, 2004 through June 30, 2005 8% July 1, 2005 through June 30, 2006 4% July 1, 2006 through June 30, 2007 4% Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) . (f) Invoices shall be issued by City to Company on the 1§th day of each month for the pdor month's service, Invoices shall be payable by Company not later than 15 days after the date of issuance. . APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTW shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER Flow C BOD5 TSS iMONTHLY MAXIMUM 18.00 Million Gallons 165,000 Pounds 16,500 Pounds MAXIMUM DALLY 800,000 Gallons 4,000 Pounds 2,300 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 800,000 gallons, 4,000 pounds of C BCD5 or 2,300 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical. (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met dudng the ten day period, no further action shall be taken by city. (b) A sumharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Sumharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (are) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastewater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) (d) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15th of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical 11. 12. (e) frequencies shall be determined by City and accomplished by City's representatives. Alt samples taken by City will be divided with Company, if requested by Company. City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in writing not less than fifteen (15) days following receipt of notification. (f) (g) When noncompliance is determined by City's Water Pollution Control Plant Manager, and thera is no wdtten request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. If Company does not accept City's testing results, on written request by Company, City shall submit samples to the University of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any current sampling and testing period by' City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industrial Pmtreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended during the term of this Agreement. LIABILITY LIMITATIONS. It is not contemplated that there will be any interruption to sanitary sewer service as herein contracted for, but if for any reason, including but not limited to court order, or physical 13. 14. conditions beyond the control of City; City is unable to furnish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not cont.emplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY- TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of written notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. 15. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, oral or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. 16. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. 17. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content Of the Paragraphs themselves. IN WITNESS WHEREOF, the parties have caused this instrument to be executed on day and year as wdtten below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: SWISS VALLEY FARMS COMPANY Date: /~/ ////'~,~ ~,~ SEWER USE AGREEMENT This Agreement is entered into this Ist day of January, 2003, between Swiss Valley Farms Company ("Company") and the City of Dubuque, Iowa, ("City") a municipal corporation. WHEREAS, City currently has an Iowa Department of Natural Resoumes permit to process municipal and industrial wastes and to discharge treated effluent into a navigable waterway in conformance with said permit; and WHEREAS, Company owns and operates a plant located at 3510 Central Avenue in Dubuque, Iowa, and is desirous of entedng into a sewer use agreement with City. NOW THEREFORE, the parties do mutually agree as follows: DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection A,qency. The U.S. Environ- mental Protection Agency, or, where appropriate, the term may also be used as a designation of the Administrator or other duly authorized official of said Agency. C BOD5 Carbonaceous Biochemical Oxygen Demand (C BOD). The quantity of oxygen utilized in the biochemical oxidation of carbonaceous matter under standard laboratory procedure, measured at 5 days, 20 degrees Celsius, expressed in terms of concentration (milligrams per liter [mg/I]). TSS or Suspended Solids Suspended Solids. The total suspended matter that floats on the surface of or is suspended in water, wastewater, or other liquids, and which is removable by laboratory filtering. Surcharges Charges to be paid by Company based on hydraulic loading, BOD, and Suspended Solids that exceed maximum limits and time frames as set forth herein. POTW Publicly Owned Treatment Works (POTW). City's treatment works as defined by Section 212 of Act (33 U.S.C. 1292) including any sewers that convey wastewater to the treatment plant, but not including pipes, sewers, or other conveyances not connected to facility providing treatment. "POTW" shall include any sewers that convey wastewater to the POTVV from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. SERVICES PROVIDED BY CITY. City shall provide the required wastewater collection, treatment, and disposal services to Company for wastewater discharged to the POTVV in volumes and of the type described in this Agreement. LIMITATION ON VOLUME AND LOADING. Company has the right to discharge up to the volumes and loadings described in this Agreement, but is not required to discharge any minimum volume or loading. EFFECT OF REQUIREMENT OF HIGHER DEGREE OF TREATMENT. If any state or federal regulatory agency requires City to install a higher degree of treatment to the domestic and industrial wastewater flow than that contemplated herein, thereby requiring the making of changes to the POTW that City determines are material, it shall give Company written notice of said requirement and the proposed additional charges to Company for said higher treatment. Within six months after date of delivery of said notice, Company may notify City in writing of its intent to terminate this Agreement and this Agreement shall be terminated 30 days from the date of Company's notice. If Company does not give said notice of termination, then this Agreement shall continue in effect and said proposed additional charges, unless otherwise agreed to by the parties, shall prevail as to said higher treatment. COMPANY'S AUTHORITY. Company is hereby authorized to discharge wastewater from the above-identified facility into the POTW in accordance with the effluent limitations, monitoring requirements and other conditions set forth in this Agreement. TERM OF AGREEMENT. The term of this Agreement shall commence on January 1,2003, and terminate on June 30, 2007. CHARGES. The following charges shall apply: (a) Sewer use rates in Section 44-83 of the City of Dubuque Code of Ordinances shall be the basis for the discounts indicated below. In the absence of sewer use rates.for flow, CBOD5 and Total Suspended Solids, the following rates shall be used for all wastes discharged by Company until such time as sewer use rates are otherwise established in Section 44-83 of the City of Dubuque Code of Ordinances: Flow - $.282/100CF CBOD5 - $180.48/1000 lbs. Total Suspended Solids - $242.44/1000 lbs. (b) All charges associated with industrial pretreatment sampling shall be additional charges in accordance with Section 44-103 of the City of Dubuque Code of Ordinances. Discounts shall not be applicable to industrial pretreatment sampling charges. (c) The following discounts shall be given the charges for Flow, CBODS, and Total Suspended Solids when City determines that the limits found in Company's Industrial Pretreatment Permit are met: (d) January 1, 2003 through June 30, 2004 12% July 1, 2004 through June 30, 2005 8% July 1, 2005 through June 30, 2006 4% July 1, 2006 through June 30, 2007 4% Discounts shown in Section 7(c) will not apply on amounts above the "Maximum Daily" or the Monthly Maximum" limits found in Section 8. (e) Invoices shall be issued by City to Company on the 15th day of each month for the prior month's service. (f) Invoices shall be payable by Company not later than 15 days after the date of issuance. APPLICABLE EFFLUENT LIMITATIONS. Wastewater discharged by Company to the POTW shall not exceed the following amounts as found in Company's Industrial Pretreatment Permit with City: PARAMETER Flow C BOD5 TSS MONTHLY MAXIMUM 18.00 Million Gallons 165,000 Pounds 16,500 Pounds MAXIMUM DAILY 800,000 Gallons 4,000 Pounds 2,300 Pounds 10. EXCESS DISCHARGES & CHARGES. The rates set forth herein shall be effective upon the commencement of the term of this Agreement. If waste treatment problems occur as a result of Company's discharge exceeding the daily maximum of 800,000 gallons, 4,000 pounds of C BOD5 or 2,300 pounds of TSS, or as a result of a change in either state or federal regulations, then City and Company agree to jointly work to resolve such problems as quickly as practical. (a) When the analyses or meters show that any limit specified herein has been exceeded, city shall so notify Company in writing. Company shall have ten working days after receipt of such notice to reduce the limits. If the limits are met dudng the ten day pedod, no further action shall be taken by city. (b) A surcharge shall be imposed for discharges which fall outside the pH range of 5.5 to 12.0 as set forth in Section 44-102(3) of the City of Dubuque Code of Ordinances. Surcharge rates shall be $100.00 per day in which one or more grab(s) or composite sample(s) is (ara) found to be outside the range. METERING, MONITORING AND REPORTING REQUIREMENTS (a) Company shall provide for City to operate at Company's expense, monitoring facilities to allow inspection, sampling and flow measurement of Company's wastewater discharge. (b) Monitoring facilities provided by Company shall meet specifications developed by City. Company shall allow City continuous access to any monitoring facilities located on Company property. (c) (d) Monitoring results obtained on a daily/weekly basis and/or on a monthly basis shall be reported by City to Company no later than the 15~h of the following month. Monitoring reports prepared by Company shall be signed by a Company principal executive officer or the officer's designee. Testing to determine compliance with the limits set forth herein may be done by City's representatives an any time. Company agrees that it will cooperate in making any necessary arrangements. Sampling and analytical 11. 12. (e) frequencies shall be determined by City and accomplished by City's representatives. All samples taken by City will be divided with Company, if requested by Company. City's Water Pollution Control Plant Manager shall make an initial determination of any questions relative to results of the sampling and testing. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant in writing not less than fi[teen (15) days following receipt of notification. (f) (g) When noncompliance is determined by City's Water Pollution Control Plant Manager, and there is no written request by Company under (e), Company agrees that the results of sampling and testing by City shall be final for the determination of sewer use charges. If Company does not accept City's testing results, on written request by Company, City shall submit samples to the Univemity of Iowa Hygienic Laboratory for testing. No more than twelve sampling and testing week periods shall be conducted each year. (h) All charges associated with independent testing shall be at Company's expense. (i) The methods and procedures for determining the extent of noncompliance shall, insofar as they are consistent with the purpose of this paragraph, be those set forth above. The results of any current sampling and testing period by City shall govern the extent of charges until the results of the next sampling and testing, subject to appropriate refunds after final resolution of any dispute. GENERAL DISCHARGE PROHIBITIONS. Company agrees to comply with the provisions set forth in City's Industda Pretreatment Program in Ch. 44, Division 6 of the City of Dubuque Code of Ordinances, and as may be amended during the term of this Agreement. LIABILITY LIMITATIONS, It is not contemplated that there will be any interruption to sanitary sewer service as herein centracted for, but if for any reason, including but not limited to court order, or physical 13. 14. 15. 16. 17. conditions beyond the control of City; City is unable to furnish the services herein mentioned, City shall not be liable for damages or loss by Company because of breakdown or failure of said sewer system and treatment plant. If City notifies Company that it cannot for any reason accept the volume contemplated herein, City shall reduce the monthly charges in direct proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent type of condition or situation and does not contemplate the right of the City to voluntarily abandon or curtail the service. FAILURE TO PAY - TERMINATION OF SERVICE. In the event of the failure of Company to pay any amount due under this Agreement within 30 days after the due date, or in the event of any other breach of any of the terms of this Agreement by Company which is not corrected within 90 days from the date of wdtten notice of such breach by City, City may, at its option, terminate service to Company and/or enforce the provisions hereof by any legal means. COMPLIANCE WITH GOVERNMENTAL LAWS. Company shall in the performance of this Agreement comply with all applicable federal, state and local laws. EXCLUSIVENESS. This Agreement contains the entire agreement between the parties and supersedes any prior understandings or agreement between them respecting the subject matter. There are no representations, arrangements, understandings or agreements, oral or written between the parties hereto relating to the subject matter of this Agreement except those fully expressed in this Agreement. ASSIGNMENT OF AGREEMENT. Company may not assign this Agreement without the prior written consent of City. Company acknowledges and agrees that City, in its sole discretion and for any reason, may refuse to grant consent to such assignment. Merger of Company with another corporation, sale of the majority of the stock of Company to any other corporation, or consolidation, shall be deemed an assignment for the purposes of this section. PARAGRAPH HEADINGS. The use of paragraph headings is for convenience only and such headings do not add to or detract from the content of the paragraphs themselves. IN WITNESS WHEREOF, the parties have caused this instrument to be executed on day and year as written below. Attest: CITY OF DUBUQUE, IOWA By: Jeanne F. Schneider, City Clerk Michael C. Van Milligen, City Manager Date: Attest: SWISS VALLEY FARMS COMPANY Date: j4¢ ./¢¢~¢-~ 402