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Industrial Sewer Use Agreement DU~~E ~<k~ MEMORANDUM January 28, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Industrial Sewer Use Agreement Acting Water Pollution Control Plant Manager Jonathan Brown is recommending execution of a four year Sewer Use Agreement with Interstate Power and Light Company - Dubuque Power Station to discharge wastewater from the power plant into the City sanitary sewer system. I concur with the recommendation and respectfully request Mayor and City Council approval. fLU VZ~/\L Michael C. Van Milligen '1 MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Jonathan R. Brown, Acting Water Pollution Control Plant Manager . , January 25, 2005 TO: Michael C. Van Milligen, City Manager FROM: Jonathan R. Brown, Acting WPCP Manager SUBJECT: Industrial Sewer Use Agreement INTRODUCTION: The purpose of this memorandum is to ask your review and approval of the attached Sewer Use Agreement with Interstate Power & Light Co - Dubuque Power Station. DISCUSSION: During the summer of 2004 Interstate Power & Light Co. (IP&L) contacted the City of Dubuque inquiring about the possibility of discharging wastewater to the City's sewer system. The wastewater at that time was being discharged to the Mississippi River under an NPDES permit. Following negotiations with IP&L and City of Dubuque Water Pollution Control staff it was agreed to pursue a industrial sewer use agreement between the City and IP&L, modeled after agreements currently in place. The City has long term sewer use agreements with three major contributors, Rousselot, Swiss Valley Farms, and Inland Protein. The format of the IP&L agreement is essentially the same as these agreements with the exception being the absence of a diminishing discount for flow, CBOD5 and total suspended solids. It is proposed that the contract be for a period of four years expiring June 30,2009. The contract incorporates a clause that will allow the City to meet Federal and State guidelines for participation in funding programs should the need and/or 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. RECOMMENDATION: I recommend that we ask the City Council to authorize you to execute a Sewer Use Agreement with Interstate Power & Light Co. - Dubuque Power Station at the February 7th 2005 Council meeting. SEWER USE AGREEMENT This Agreement is entered into this _ day of , 2005, between Interstate Power & Light Co - Dubuque Power Station ("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 920 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: 1. DEFINITIONS. As used herein, the following terms shall have the following meaning: EPA Environmental Protection Aqencv. 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. CBOD5 Carbonaceous Biochemical Oxyqen Demand (CBOD). 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/l]). 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, CBOD, 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 POTW from persons outside the corporate boundaries of City who are, by Agreement with City, users of City's Wastewater Treatment Facility. 2. 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. 3. 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. 4. 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 the 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. 5. 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. 6. TERM OF AGREEMENT. commence on 20 The term of this Agreement shall , 2005, and terminate on 7. 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 - $180.48/1000Ibs. Total Suspended Solids - $242.44/1000Ibs. (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) Invoices shall be issued by City to Company on the 15th day of each month for the prior month's service. (d) Invoices shall be paid by Company not later than 15 days after the date of issuance. 8. 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 CBOD5 TSS 16.00 Million Gallons 16000 Pounds 53000 Pounds 500,000 Gallons 500 Pounds 1700 Pounds 9. 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, 500 pounds of CBOD5 or 1700 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. 10. 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 and shall so notify Company. If Company does not agree with any such determination, it shall notify City's Water Pollution Control Plant Manager in writing not less than fifteen (15) days following receipt of such 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. 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 conditions beyond the control of City, City is unable to furnish the services herein mentioned, City shall not be liable for any 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 the same proportion that the reduced volume bears to volumes contemplated by this Agreement. Such interruption of service is limited to one produced by non-permanent conditions or situations and does not contemplate the right of the City to voluntarily abandon or curtail the service. . . 13. 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. 14. 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 assig"ment 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 the 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: INTERSTATE POWER & LIGHT CO By: Date: