HomeMy Public PortalAboutRES-CC-2016-29Resolution #29-2016
A RESOLUTION APPROVING AN AGREEMENT BETWEEN SPANISH VALLEY WATER AND SEWER
WATER IMPROVEMENT DISTRICT AND THE CITY OF MOAB
WHEREAS, the City of Moab ("Moab") has determined that it is in the best interest of the
community to enter into a cooperative agreement with Spanish Valley Water and Sewer
Improvement District to provide sewer services for Spanish Valley; and
WHEREAS, Moab, pursuant to Utah Code Ann. § 10-8-38, is authorized to acquire and operate
systems for the collection, treatment and disposition of sewage (a "Wastewater System"); and
WHEREAS, Moab is intending to design and construct a new sewage treatment plant with
increased capacity for the future (the "new Treatment Plant"); and
WHEREAS, the new Moab Treatment Plant as designed will have additional capacity, compared
to the Current Treatment Plant, for the conveyance and treatment of wastewater for Moab and
other contracted Users; and
WHEREAS, the Spanish Valley Water and Sewer Water Improvement District ("District") is
interested in providing for its existing capacity in the Current Treatment Plant in the New
Treatment Plant; and
WHEREAS, the District is in need of additional future treatment services and additional capacity
for the treatment of wastewater; and
WHEREAS, Moab intends to operate its New Treatment Plant as a regional facility and is willing
to accept users; and
WHEREAS, Moab and the District deem it to be in the public interest to enter into this
Agreement whereby Moab will continue to receive and treat District wastewater; and
WHEREAS, the attached agreement provides for the funding and coordination of such services;
NOW THEREFORE, WE, THE GOVERNING BODY OF THE CITY OF MOAB DO HEREBY ADOPT THE
AGREEMENT IN SUBSTANTIALLY THE FORM PRESENTED TO THIS MEETING OF THE CITY COUNCIL,
AND AUTHORIZE THE APPROPRIATE INDIVIDUALS TO EXECUTE AND DELIVER SAID AGREEMENT.
This resolution shall take effect immediately upon passage.
Resolution #29-2016 Page 1 of 2
Passed and adopted by action of the Governing Body of Moab City in open session this 8th day of
November, 2016.
CITY OF MOAB
By:
Attest:
-I.,_Oud
Rachel E. Stenta
City Recorder
David L. Sakrison
Mayor
Resolution #29-2016 Page 2 of 2
INTERLOCAL COOPERATION AGREEMENT
This Agreement is made and entered into by and between the City of MOAB, Utah, a Utah
municipal corporation, hereinafter referred to as "MOAB" and Spanish Valley Water and Sewer
Improvement District, an improvement district and a political subdivision of the state of Utah,
hereinafter referred to as "DISTRICT".
WHEREAS, MOAB, pursuant to Utah Code Ann. § 10-8-38, is authorized to acquire and operate
systems for the collection, treatment and disposition of sewage (a "Wastewater System"); and
WHEREAS, MOAB owns and operates a Wastewater System, including facilities for the
conveyance and treatment of domestic, commercial and industrial Wastewater; and
WHEREAS, MOAB is intending to design and construct a new sewage treatment plant with
increased capacity for the future (the "new Treatment Plant"); and
WHEREAS, MOAB currently has a Discharge Permit issued by the State of Utah Department of
Environmental Quality ("DWQ"), which Permit describes the discharge requirements and
treatment capability of MOAB's current sewage treatment plant (the "Current Treatment Plant")
for, among other things, limitations of strength of wastewater influent; and
WHEREAS, the DISTRICT, has by agreement with MOAB, the right to certain capacity in the
Current Treatment Plant; and
WHEREAS, the new Moab Treatment Plant will require a Discharge Permit issued by the DWQ;
and
WHEREAS, the new Moab Treatment Plant MOAB as designed will have additional capacity,
compared to the Current Treatment Plant, for the conveyance and treatment of wastewater for
Moab and other contracted Users; and
WHEREAS, pursuant to Utah Code Ann. § 11-8-1, municipalities and improvement districts are
expressly authorized to enter into contracts for sewage treatment and disposal services, which
authority is separate from and in addition to authority granted under the Impact Fees Act, Title
11, Chapter 36a, of the Utah Code; and
WHEREAS, DISTRICT is interested in providing for its existing capacity in the Current Treatment
Plant in the New Treatment Plant; and
WHEREAS, DISTRICT is in need of additional future treatment services and additional capacity for
the treatment of Wastewater; and
WHEREAS, MOAB intends to operate its New Treatment Plant as a regional facility and is willing
to accept Users; and
WHEREAS, MOAB and DISTRICT deem it to be in the public interest to enter into this Agreement
whereby MOAB will continue to receive and treat DISTRICT Wastewater; and
WHEREAS, DISTRICT is willing to pay its proportionate share of the costs of interconnection and
transmission and to pay for treatment services and expenses for the domestic, commercial and
industrial wastewater generated and conveyed to the New Treatment Plant through the DISTRICT
Wastewater System as described in this Agreement; and
WHEREAS, it is necessary that all Users pay to replace their existing capacity in the Current
Treatment Plant in the New Treatment Plant and their fair share of costs associated with MOAB
Wastewater System including treatment and transmission; and
WHEREAS, it is the intent of the parties that MOAB will establish and collect an Impact Fee from
all new Customers or Connections including DISTRICT Customers; and
WHEREAS, MOAB and DISTRICT intend to work cooperatively to provide their citizens and
Customers with safe, effective, and environmentally sound wastewater treatment services; and
WHEREAS, MOAB will consider DISTRICT a User of its Wastewater system, and as such, DISTRICT
will be regarded in the same manner as other Users of MOAB Wastewater System in regards to
cost of service based rate setting and surcharges; and
WHEREAS, MOAB and DISTRICT desire to comply with applicable federal and state requirements
dealing with wastewater treatment and pollution control; and
WHEREAS, MOAB and DISTRICT recognize that the public interest will be served and that
economic savings will be recognized by avoiding duplication of services and facilities.
NOW, THEREFORE, in consideration of mutual promises and covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, it is agreed by and between MOAB and DISTRICT as follows:
Article 1. Definitions. For the purpose of this Agreement the following terms are defined as
follows:
Agreement shall mean this Interlocal Cooperation Agreement for Conveyance and Treatment of
Wastewater between MOAB and DISTRICT.
Capacity Fee shall mean the costs associated with the capital costs of the MOAB Wastewater
System identified in the Moab Wastewater Impact Fee Analysis to be paid by each Equivalent
Residential Unit connecting to the MOAB Wastewater System through the DISTRICT Wastewater
System.
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Connection Point shall mean the location(s) where the DISTRICT sewer collection lines connect to
the MOAB collection lines for conveyance to the MOAB Wastewater System. Each Connection
Point shall delineate the point of ownership, operation, and maintenance responsibility transfer
between the DISTRICT Wastewater System and MOAB Wastewater System.
Customer shall mean the individual homes, commercial, governmental, manufacturing, or
industrial businesses that are connected to the User's Wastewater System that are collected and
treated in the MOAB Wastewater System.
Discharge Permit shall mean a permit issued by DWQ to allow MOAB to discharge treated
wastewater from either the New Treatment Plant or the Current Treatment Plant to waters of
the state of Utah, specifically the Colorado River.
DISTRICT shall mean the Spanish Valley Water & Sewer Improvement District.
DISTRICT Wastewater System shall mean all properties and facilities, whether leased, owned, or
otherwise controlled, operated or maintained by DISTRICT, used for the collection, conveyance,
and/or treatment of Wastewater within DISTRICT.
Equivalent Residential Unit (ERU) is a unit of measure used to equate non-residential or multi-
family residential water usage to a specific number of single-family residences. For purposes of
this Agreement, one ERU is the equivalent of a typical single-family home. An ERU is the unit of
measurement for the impact fee calculation.
Force Majeure shall mean a cause or causes beyond the reasonable control of the party claiming
Force Majeure and shall include, but is not limited to, natural disasters, strikes, lockouts, or other
industrial disturbances, acts of a public enemy, orders of any kind from the United States of
America or the state of Utah or any civil or military authority having jurisdiction, insurrections,
riots, epidemics, lightening, fires, hurricanes, storms, floods, tornadoes, washouts, earthquakes,
droughts, restraint of government and people, civil disturbances, explosions and breakage or
unavoidable accidents to machinery, pipelines or facilities. However, the parties agree that a
mere increase in operating costs shall not, by itself, constitute an event of Force Majeure.
Impact Fee shall mean a Capacity Fee charged to a new building or project that will require a new
wastewater connection to send Wastewater to the Moab Wastewater System adopted and
amended from time to time by MOAB in accordance with the Utah Impact Fees Act.
Infiltration shall mean the leakage of storm water or ground water into a Wastewater System.
Meter Station shall mean a flow metering station for measuring wastewater flows.
MOAB shall mean Moab City, a municipal corporation in the state of Utah.
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MOAB Wastewater System shall mean all properties and facilities, whether leased, owned, or
otherwise controlled, operated, or maintained by MOAB, used for the collection, conveyance,
treatment, and discharge of Wastewater within MOAB.
Monthly Rate or Service Charge shall mean the standard cost based charges developed through
the then current Moab Rate Study required to be paid by Customers of MOAB or DISTRICT for
their specific amount of discharge into the Wastewater System. It is not anticipated that the
Monthly Rate will be the same for MOAB Customers and DISTRICT Customers because MOAB will
incur costs that benefit only its Customers and cannot properly be allocated to DISTRICT
Customers, and DISTRICT may incur costs that are unique to DISTRICT Customers and do not
benefit MOAB Customers.
New MOAB Treatment Plant shall mean the Moab City Wastewater Treatment Plant that, at the
time of the negotiation of this Agreement, is in final design and is intended to be completed prior
to 2019.
Periodic Basis is a reoccurring event with consistent timing.
Pre-treatment shall mean a Customer owned device or Customer implemented process, that is
intended to remove untreatable products from the Wastewater or intended to prevent influent
from exceeding the Wastewater Permit, prior to sending it into the MOAB Wastewater System.
Pre -Treatment Permit shall mean a permit required by all non-residential uses which may affect
the influent and thereby MOAB's ability to process sewage within User's service area, who will
be connected to the MOAB Current or New Wastewater Treatment Plant.
Pre -Treatment Program shall mean a DWQ approved pre-treatment program that is
implemented to prohibit unacceptable or untreatable flows to MOAB's existing or New
Wastewater Treatment Plant.
Rate Study shall mean a good faith comprehensive analysis of operating and maintenance costs
of the Moab Wastewater System and a comparison of the costs against currently applicable rates
and fees.
Resolution shall mean a formal expression of the opinion or will of MOAB or DISTRICT, adopted
by the applicable legislative body. A resolution may be a statement of policy by the MOAB or
district governing body (city council or DISTRICT board of trustees) or an order of the governing
body that a specific action be taken.
Reuse Water shall mean treated effluent wastewater discharged from the MOAB Treatment Plant
that may be diverted from the effluent stream for other non -potable applications in accordance
with applicable law.
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Septage shall mean excrement and other waste material contained in or removed from a septic
tank, pit toilet or other physical storage location on state or federal lands as well as private
property locations.
Treatment Service Area shall mean the service areas as the Users are accepted into the MOAB
Wastewater Treatment Plant and any additional areas added to Users service areas that are
accepted by MOAB.
Total influent shall mean wastewater flows from all sources in the wastewater collection system
(except septic).
Useful Life of the MOAB Wastewater Treatment Plant shall mean the period during which the
Wastewater Treatment Plant is expected to be usable for the purpose of adequate treatment of
Wastewater in accordance with DWQ Discharge Permit. The Useful Life may or may not
correspond with the actual physical life or economic life.
User shall mean any entity including the DISTRICT and MOAB transferring their Wastewater
and/or Septage to the MOAB Wastewater System for transmission, collection and treatment.
Wastewater shall mean the spent water of a community, including but not limited to a
combination of the liquid and water -carried wastes from residences, commercial buildings,
industrial plants, and institutions, together with any ground water, surface water and storm
water infiltration into the community's Wastewater System.
Article 2. Scope.
2.1 Purpose. The purpose of this Agreement is to set forth the conditions by which DISTRICT
may transfer its existing capacity in the Current Treatment Plant into the New Treatment
Plant and the conditions for the DISTRICT to continue to discharge Wastewater into the
MOAB Wastewater System for conveyance and treatment services and to establish
mutually acceptable standards and procedures.
2.2 Wastewater permit. MOAB will issue a Wastewater Permit to DISTRICT setting forth the
parameters, standards and requirements for the discharge of Wastewater into the MOAB
Wastewater System based upon MOAB's DWQ issued Discharge Permit and the biological
and hydraulic capacity of MOAB's Current or New Wastewater Treatment Plant in
addition to the provisions contained in this Agreement. Any renewal of the Wastewater
Permit will occur within six (6) months of renewal of MOAB'S DWQ Discharge Permit.
2.3 Compliance. The parties intend that both parties shall comply with all requirements,
parameters, conditions, and standards contained within this Agreement as well as those
contained within the Wastewater Permit.
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2.4 Enforcement of Laws. To the extent allowed by law, MOAB and DISTRICT shall enforce
all federal, state and local laws as they relate to the development, construction,
maintenance and operation of their respective Wastewater Systems, including
pretreatment requirements imposed by law or permit.
2.5 Prior Agreements. This Agreement supersedes any other wastewater agreements
between MOAB and DISTRICT including the 1982 agreement.
Article 3. Term.
3.1 Commencement of Term. Having already been reviewed by attorneys representing each
party, this Agreement shall become effective upon (i) its approval as reflected in a
resolution adopted by each governing body and its execution by both parties and (ii) the
filing of an executed copy of this Agreement with the keeper of records of each of the
parties (the "Effective Date") as required by the Interlocal Cooperation Act.
3.2 Duration of Agreement Except in the event of early termination as provided herein, the
term of this Agreement shall end at the expiration of the Useful Life of the anticipated
New MOAB Wastewater Treatment Plant, including the subsequent planned expansion,
or fifty (50) years, whichever is sooner.
3.3 New MOAB Treatment Plant. The discharge of DISTRICT Wastewater to the MOAB
Wastewater System pursuant to this Agreement may be commenced in the New Moab
Wastewater Treatment Plant only after all funding is in place, standards developed and
upon the receipt of all necessary local, state and/or federal approvals and permits.
3.4 Current MOAB Treatment Plant. The discharge of the DISTRICT Wastewater to the MOAB
Wastewater System pursuant to this Agreement may continue in the Current MOAB
Wastewater System until the New MOAB Treatment Plant is online. If the capacity of the
Current plant is fully used before the new plant is online, MOAB may limit new
connections for Users including the DISTRICT until such time there is additional capacity
available. Any limits on new connections shall impose substantially similar restrictions on
both MOAB and the DISTRICT.
Article 4.
Termination of Agreement.
4.1 Termination Due to Material Breach. Either party shall have the right to terminate this
Agreement in the event of a material breach of the provisions of this Agreement by the
other if the defaulting party has not cured or reasonably started to cure such material
breach within six (6) months after the non -defaulting party has made written demand to
cure the same.
A. Events that may constitute a "material breach" of this Agreement by DISTRICT include but
are not limited to:
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1. Exceeding the limitations set forth herein;
2. Failure to take action in the event of discharge from the DISTRICT Wastewater System of
harmful substances in excess of the quantity or concentrations permitted by local, state
and/or federal laws;
3. Failure to enforce any material, local, state and/or federal rule, regulation, law or
procedure as it relates to the development, maintenance or operation of the DISTRICT's
Wastewater System;
4. Failure to comply with the requirements of the Wastewater Permit;
5. Remaining delinquent for any payment due hereunder for a period of ninety (90) days
after receiving notice of thereof from MOAB. MOAB agrees that, in the event DISTRICT
disputes any charge or fee imposed by MOAB, DISTRICT may pay the disputed portion of
the bill under protest pending a resolution of the dispute; and
6. Failure to perform any material covenant or obligation contained in this Agreement.
B. Events that may constitute a "material breach" of this Agreement by MOAB include but
are not limited to:
1. Exceeding the limitations set forth in the DWQ issued Discharge Permit;
2. Failure to comply with any local, state and/or federal rule, regulation, law or procedure
as it relates to MOAB's Wastewater System; and
3. Failure to comply with the DWQ issued Discharge Permit;
4. Failure to perform any material covenant or obligation contained in this Agreement.
4.2 Mutual Agreement. This Agreement may be terminated by the mutual consent of MOAB
and DISTRICT by resolution duly adopted by the governing body of each entity.
4.3 Continuing Responsibilities. No termination of this Agreement shall terminate the right
of either party to any indemnification, payment or other outstanding performance,
remedy or recourse arising with respect to an event, circumstance or event of default
occurring or existing prior to the date of termination.
Article 5. Initial Buy -In to MOAB New Wastewater Treatment Plant.
5.1 Capital Contribution. The DISTRICT will pay for its fair share of the capital cost of the New
MOAB Wastewater Treatment Plant based upon the DISTRICT's current capacity use in
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the Current Wastewater Treatment Plant. This current capacity use will be transferred to
the New MOAB Wastewater Treatment Plant. DISTRICT agrees to pay the capacity use
cost as Outlined in the Technical Memorandum, Exhibit 2. The DISTRICT shall pay Eight
Hundred Thousand Dollars ($800,000.00) in a single payment within thirty (30) days of
the effective date of this Agreement, and the remaining costs will be paid in twenty (20)
annual payments of Eighty Four Thousand Six Hundred Eighty Seven Dollars and Forty
Four Cents ($84,687.44) starting on August 1, 2017 and continuing annually thereafter
for a total of One Million Six Hundred Ninety Three Thousand Seven Hundred Forty Eight
Dollars and Eighty Cents ($1,693,748.80).
5.2 Capacity. Current capacity shall be allocated between the MOAB and the DISTRICT
based on the total ERUs currently utilized by each entity. By reference in the Technical
Memorandum, Exhibit 2, MOAB is accepting the existing DISTRICT ERUs (flows) of Two
Thousand Seven Hundred Seven (2,707) ERUs and the DISTRICT's current list of Customers
and equivalent ERUs. The DISTRICT and MOAB agree on their total current ERUs as of
October 31, 2016.
Article 6. Fees and Charges.
6.1 Fees and Charges. DISTRICT agrees to pay to MOAB the duly adopted Monthly Rate or
Service Charge for the DISTRICT and its Customers. It is understood and agreed by
DISTRICT that the charges do not include unanticipated or emergency capital repairs
to the MOAB Wastewater System and that the charges set forth herein are subject
to periodic adjustments as provided herein for both Monthly Rates and Impact Fees. All
fees, costs of services and establishment of rates to be charged by MOAB for the services
provided to DISTRICT shall be based upon the most recent Moab Wastewater Monthly
Rate Study and Impact Fee Study.
6.2 Impact Fees. MOAB intends to adopt Impact Fees for all Users including the DISTRICT and
any new Customers in their Service Area. The DISTRICT agrees that it will act as MOAB's
agent to collect the Impact Fees from those Customers connecting to DISTRICT
Wastewater System. The costs of the Impact Fee Studies shall be included in the
calculation of an allowable Impact Fee. The DISTRICT shall collect and remit Impact Fees
in accordance with the current approved Impact Fee study at the time of Building Permit
of each new Customer. The Impact Fees shall be collected by the DISTRICT and remanded
to the City every thirty days for each and every new connection to the DISTRICT
Wastewater System. Additionally, DISTRICT understands and agrees that MOAB may also
impose Impact Fees for all additional ERUs of new or additional facilities. The DISTRICT
hereby specifically agrees that if it fails to collect an Impact Fee from one of its Customers
the DISTRICT shall be responsible to pay to MOAB the amount of the uncollected Impact
Fee to MOAB as if the DISTRICT had actually collected the fee from its Customer.
6.3 Periodic Rate Study and Impact Fee Studies. MOAB hereby agrees that it will undertake
a Monthly Rate Study and Impact Fees study on a Periodic Basis to ensure that costs are
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appropriately distributed to Users. MOAB agrees that the DISTRICT will have the
opportunity to review and comment on the methodology and results of any such studies.
MOAB will notify Users including the DISTRICT three (3) months before the
commencement of the Studies. MOAB will provide studies consistent with the Impact
Fees Act. MOAB agrees to provide the DISTRICT sufficient budgetary information
necessary to explain the MOAB Wastewater System revenues and expenditures, fees
charges, and how the fees were developed. DISTRICT shall have the opportunity to review
and provide comment on the budgetary information and reports (including Monthly Rate
Study and Impact Fees Study) used to develop such fees.
6.4 Other Fees and Charges. DISTRICT agrees to pay to MOAB costs of operation,
maintenance, repair and capital charges that are not covered by any Impact Fee (based
on actual costs) or other payment to MOAB by DISTRICT as set forth in this Agreement. It
is understood and agreed by the parties that the charges to DISTRICT do not include
unanticipated or emergency capital repairs to the MOAB Wastewater System and that
the charges herein may be subject to annual adjustment as provide in this Agreement.
6.5 Cooperation. MOAB and DISTRICT acknowledge that with the anticipated length of the
term of this Agreement it is difficult to know and anticipate all types of issues or costs for
the operation of the MOAB Wastewater Systems; both the DISTRICT and MOAB will
collaborate and cooperate on funding that may necessary to meet compliance, operation
or treatment in the future.
Article 7. Billing and Payment
7.1 Monthly Rate and Fees. On or before the 28th_ day of each month, DISTRICT shall remit
payment for all appropriate billed Service Charges. Such a bill shall become due and
payable within thirty (30) days from the billing date. Any balance remaining unpaid thirty
(30) days from the date the billing is received by DISTRICT shall be considered delinquent
and accrue a surcharge for delinquency based on current lawful MOAB policies. DISTRICT
shall note any new DISTRICT Customers each month.
7.2 Impact Fees. On or before the 28th day of each month, the DISTRICT shall remit payment
with addresses for all Impact Fees collected. Such a bill shall become due and payable
within thirty (30) days from the billing date. Any balance remaining unpaid thirty (30)
days from the date issued shall be considered delinquent and accrue a surcharge for
delinquency based on current City policies. The report will include new Customer type
(i.e. gas station, restaurant, and single family residence), name, address and number of
ERUs and fee.
7.3 Billing Disputes. Any disputes on billing shall be presented to the other party in writing.
MOAB and DISTRICT agree to attempt in good faith to resolve billing disputes. The
resolution shall be paid within two (2) weeks of resolution of dispute.
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Article 8. Pretreatment Program
8.1 Pretreatment Program. It is agreed and understood that MOAB intends to adopt a
Pretreatment Program. MOAB and DISTRICT agree to work cooperatively to have the
Pretreatment Program approved by DWQ to insure MOAB Wastewater System
performance and regulatory compliance. MOAB will require all Users to meet, at a
minimum, the federal, state and local requirements for Pre -Treatment. MOAB agrees and
understands that the intent of the Pretreatment Program is to protect the wastewater
systems and plant and not to limit commerce. MOAB agrees that prior to adopting or
amending the Pretreatment Program that it will allow reasonable input from Users
including the DISTRICT. It is hereby agreed and understood that the Pre-treatment
Program is subject to updates and changes as required to meet MOAB's Discharge Permit
or changes at the state or federal level. DISTRICT agrees to adopt policies that perpetually
implement and enforce the Pre -Treatment Program.
8.2 Pre -Treatment Permit. The parties recognize that there are corrosives and other chemical
concentrations that will cause significant difficulty for the plant to operate. The Pre -
Treatment Permit will define these chemicals and reasonable limitations. Some
limitations may require DISTRICT Customers to perform Pre -Treatment. All costs of the
Pre -Treatment for the DISTRICT Customers in compliance with this paragraph shall be the
responsibility of DISTRICT, but may be passed on to the responsible DISTRICT customer.
All non-residential uses which may affect the influent and thereby MOAB's ability to
process sewage will be required to maintain a Pre -Treatment Permit from MOAB. The
terms and provisions of the Pre -Treatment Permit issued on an annual basis by MOAB to
DISTRICT's commercial, industrial or manufacturing Customers shall be within the
requirements of the Pre -Treatment Program as adopted. The DISTRICT agrees to be
responsible to adopt a Resolution providing for the enforcement of the Pre -Treatment
Permit compliance of their Customers and shall work with MOAB to ensure timely
compliance. The enforcement shall incorporate typical methods including but not limited
to interruption of water service. The DISTRICT will comply with whatever the MOAB
defines as this enforcement process in the accepted Pre -Treatment Regulations and in
accordance with this Agreement. The Pre -Treatment requirements may be implemented
by MOAB regardless of the total flows of wastewater through the MOAB Wastewater
System.
Article 9. Monitoring, Sampling and Measurement of Wastewater
9.1 Flow Measurement and Recording. DISTRICT agrees to maintain an automatic flow
measuring and recording system for the purpose of accurately measuring the flow from
its Wastewater System at three existing locations including HIGHWAY, JUNIOR HIGH and
HIGH SCHOOL as shown on Exhibit 1. MOAB and DISTRICT agree to the joint use of the
automatic flow measuring and recording system but DISTRICT agrees to maintain the flow
measuring and recording system. DISTRICT may be permitted to add a new connection
point with the review and reasonable approval of MOAB.
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9.2 SCADA. DISTRICT shall cooperate with and assist MOAB in connecting a Supervisory
Control and Data Acquisition (SCADA) system to the DISTRICT measuring and recording
system. MOAB and DISTRICT shall cooperate in the maintenance and operation of shared
Project Instrumentation and Controls including SCADA system components within
DISTRICT at three metered locations, or others as necessary to assist with the control,
monitoring and metering of DISTRICT's wastewater influent. The SCADA system will have
remote read capability which will be available instantaneously in real-time. Respecting
the SCADA system only, MOAB shall pay for telemetry and DISTRICT shall pay all other
costs.
9.3 Inspection and Calibration. DISTRICT shall be responsible for the inspection, testing and
calibration of flow measuring devices at the meter locations. Each flow measuring device
shall be calibrated annually and DISTRICT shall share results of the calibration of the
measuring devices with MOAB.
9.4 Disruption of Service. If an emergency interruption of wastewater service becomes
necessary or occurs through natural disaster, DISTRICT and MOAB agree that it is in the
best interest of both parties to work cooperatively to determine a satisfactory response
plan to best accommodate the needs of both parties and their Customers. Upon
execution of this Agreement, the parties' operational staffs will develop emergency
operational protocols to address such an event, should it occur.
9.5 Testing and Sampling. To ensure that wastewater flows from DISTRICT are in compliance
with applicable federal, state and local requirements, DISTRICT will provide MOAB
reasonable access to its Wastewater System to perform testing at the Connection Points
identified in Section 9.1 above. MOAB shall perform all testing and sampling of
wastewater and determine the type of tests to be performed, frequency of sampling,
limits for test compliance, sampling methods, and points of sampling. These parameters
may be subject to change from time to time at MOAB's reasonable discretion. At a
minimum, annual sampling will be performed. The cost of the testing will be considered
operational costs in all Rate Studies. If MOAB's testing determines that there are
compliance issues with DISTRICT'S Influent, MOAB will assist DISTRICT to identify the
specific issue and the source of the same. DISTRICT may request testing at the Treatment
Plant or elsewhere in MOAB's Wastewater System for comparable results related to
DISTRICT's Wastewater System and MOAB will implement any such reasonable request
and will actively assist DISTRICT in the conduct of such testing.
Article 10. Wastewater Reuse. Any reuse of treated effluent by either party will be governed
by the Wastewater Reuse Act, Title 73, Chapter 3c, of the Utah Code. The parties agree
reasonably to cooperate with each other in effectuating the reuse of treated effluent
discharged from any Treatment Plant operated by MOAB, provided that such cooperation
shall be without cost, loss, liability or risk to the party that is asked to cooperate with the
other party's reuse project unless the cooperating party voluntarily agrees otherwise.
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Article 11. Planning for Service Areas. The service area for this Agreement will include all
wastewater services for the entire MOAB City limits as well as the entire Spanish Valley
Water and Sewer Improvement District service area as shown in Exhibit 3. This
Agreement anticipates that the MOAB or DISTRICT may desire to incorporate a portion of
San Juan County into the Wastewater Treatment Plant service area. MOAB will review
and consider application by any User for changes in the Treatment Service area.
Article 12. Planning for Future Agreements. After the New Treatment Plant is designed and
constructed, the parties anticipate that planning for additional capacity beyond the
current planned capacity will begin at the point at which eight five (85%) percent of
available capacity is being utilized. The rate of new development may impact the timing
for the development of the next phase (i.e. if development and growth are occurring at a
more rapid pace than anticipated, the design and construction of additional capacity may
be initiated at 80% of capacity).
Article 13. Uniform Sewer Standards. Within six months after the Effective Date of this
Agreement, MOAB and DISTRICT will begin a process to develop and approve, (through
the MOAB City Council and the DISTRICT Board of Trustees), the joint standards for
Collection as well as MOAB's standards and requirements for wastewater treatment. This
process shall be completed within one year after the Effective Date of this Agreement.
Both parties agree to implement and enforce these standards and requirements with all
Customers in their respective jurisdictions.
Article 14. Allocation of Capacity. Treatment plant capacity shall be allocated on a first -come,
first served basis for all Users, and will be calculated based upon Equivalent Residential
Units (ERUs).
Article 15. Responsibilities of MOAB
15.1 MOAB Responsibilities. MOAB agrees to receive and treat DISTRICT wastewater in
accordance with the provisions of this Agreement and in compliance with all applicable
existing or future laws, rules, regulations, ordinances, water quality standards, orders and
decrees of any governmental authority having jurisdiction over the treatment and
disposal of said wastewater. It is understood by the parties hereto that, until the New
Treatment Plant is online, MOAB can only treat DISTRICT'S wastewater to the extent
MOAB is presently capable of treating said wastewater utilizing the Current Treatment
Plant. In the event that future regulatory changes require a greater degree of treatment,
MOAB shall comply with such requirements. The cost associated with performing a
higher degree of treatment because of a change in state of Utah requirements may be
incorporated in the cost of services (Monthly Rates) and Impact Fees as stated herein and,
if necessary, DISTRICT may be assessed an adjusted rate for wastewater disposal based
on the results of the cost of services modifications.
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15.2 Coordination. MOAB shall coordinate and collaborate with DISTRICT on the planning,
design, bidding, and construction of the New Treatment Plant.
15.3 Operation. MOAB shall operate, maintain and repair the MOAB Wastewater System in
compliance with all applicable local, state and federal laws, rules and regulations.
15.4 Regulatory Permits. MOAB shall collaborate and cooperate with DISTRICT on applications
and permits required from any Health Department, DWQ, federal EPA, or any other
applicable regulatory agency as necessary or appropriate for the operation or
construction of the New Treatment Plant.
15.5 Ownership. MOAB shall own all interconnection Wastewater facilities from the
Connection Points to the MOAB Wastewater Treatment Plant.
15.6 Maintenance. MOAB shall be responsible for any and all maintenance and repair of
MOAB'S Treatment Plant and the MOAB Wastewater System.
15.7 Determination of Available Capacity. MOAB's Current Treatment Plant and anticipated
New Treatment Plant are MOAB City assets and facilities. It is agreed and understood
that MOAB has the authority to determine if the MOAB Current or New Wastewater
Treatment Plant has available capacity and if Pre -Treatment requirements are necessary
for the acceptance of new flows into the MOAB Current or New Wastewater Treatment
Plant. This review shall occur during the DISTRICT's plan review process for all new
developments outside of MOAB. During this process, MOAB shall require and the
DISTRICT agrees to provide to MOAB information to ensure that all activities of the
development shall meet the MOAB Discharge Permit requirements. The DISTRICT agrees
that no new non-residential connections will be approved without first being reviewed
and signed off with MOAB's agreement so that there is available capacity and what, if any,
are the Pre -Treatment requirements. This will be provided in a written "will serve" letter.
When there is available capacity under 85%, MOAB will review residential developments
over 50 units and all non-residential projects; if the MOAB Treatment Plant is at 90%
capacity or above, all residential projects over 10 units and all non-residential uses will be
reviewed; at 95% capacity, all new connections will be reviewed for available capacity and
Pre -Treatment requirements. The Current Treatment Plant is at 95% capacity and the
DISTRICT hereby acknowledges and agrees that all new connections to the Current
Treatment Plant will be subject to review and approval by MOAB prior to connection the
system. The percent of capacity will be determined based on least available capacity (at
the time of this Agreement, February and March). MOAB and DISTRICT will cooperate to
make these new approvals equitable and timely.
Article 16. Responsibilities of DISTRICT.
16.1 DISTRICT Responsibilities. DISTRICT is responsible for all design, engineering, and
construction costs to convey Wastewater from DISTRICT's service area to the MOAB
13
Wastewater System, including the construction and installation of any necessary pipes
and facilities to the Connection Point(s). Attached hereto as Exhibit 1 is a diagram of the
existing configuration and location of the Connection Point(s), which may be modified as
mutually agreed by the parties.
16.2 Interconnect Lines. DISTRICT shall maintain the lines up to the interconnect point of each
of the three existing connections. DISTRICT shall, at its cost, be responsible for the
ownership, operation and maintenance of these lines to each Connection Point and be
responsible for the Wastewater System upstream of the Connection Points.
16.3 Compliance. DISTRICT shall operate, maintain and repair DISTRICT's Wastewater System
in accordance with applicable local, state and federal requirements.
16.4 Pre -Treatment Program. DISTRICT is responsible for enforcing any DWQ approved Pre -
Treatment Program upon its Customers.
16.5 Collection of Fees. DISTRICT will collect rates and fees due to MOAB directly from their
Customers. The DISTRICT is responsible to remit all funds due and the DISTRICT is
responsible to collect any unpaid DISTRICT Customer fees owed to MOAB.
16.6 Cooperation. DISTRICT shall collaborate and cooperate with MOAB on applications and
permits required from any Health Department, Department of Environmental Quality,
DWQ or EPA, or any other applicable regulatory agency, as necessary for operation or
construction of the New MOAB Wastewater Treatment Plant.
Article 17. Control and Ownership of Wastewater System
17.1 Respective Systems. MOAB and DISTRICT shall control, own, operate and maintain their
respective Wastewater Collection Systems.
17.2 MOAB Wastewater System. Except as otherwise provided in this Agreement, DISTRICT
shall have no ownership rights in, to or over the MOAB Wastewater System nor shall it
have any rights to control or operate such System.
17.3 DISTRICT Wastewater System. Except as otherwise provided in this Agreement, MOAB
shall have no ownership rights in, to or over the DISTRICT Wastewater System nor shall it
have any rights to control or operate such System.
17.4 Management of MOAB System. Except as otherwise provided in this Agreement,
DISTRICT shall have no right to participate in the management and operation of the MOAB
Wastewater System.
14
17.5 Management of DISTRICT System. Except as otherwise provided in this Agreement,
MOAB shall have no right to participate in the management and operation of the DISTRICT
Wastewater System.
Article 18. Enforcement of Regulation of Wastewater Discharge Requirements.
18.1 Prohibited Wastewater. If DISTRICT discharges prohibited wastewater (as defined by the
Wastewater Permit) into the MOAB Wastewater System, the entities shall cooperate in
taking forthright action to eliminate the prohibited flow. Both parties agree that,
depending upon the seriousness of the harm being done or the potential for harm to be
done to the MOAB Wastewater System or to the health or safety of the public, or to the
environment, and with notice to DISTRICT, MOAB may temporarily suspend taking the
specific flow containing prohibited wastewater, and service to the offending DISTRICT
Customer, if such Customer can be identified, may be disconnected until a resolution of
the problem flow is achieved. MOAB agrees to take equivalent steps if MOAB has a
Customer who is sending prohibited wastewater to the MOAB Treatment Plant.
18.2 Possible Surcharge. If DISTRICT delivers Wastewater to the MOAB Wastewater System
that exceeds the Wastewater Permit, MOAB may impose a surcharge to the DISTRICT.
DISTRICT agrees to pay the surcharge regardless of whether it collects such amount from
the offending Customer.
Article 19. General Provisions.
19.1 Authority. MOAB and DISTRICT are authorized to enter into this Agreement under the
laws of the state of Utah pursuant to the Interlocal Cooperation Act, Utah Code Annotated
§§ 11-13-1, et seq. They also have statutory authority to enter into this Agreement
separate and apart from the Interlocal Cooperation Act. It is the intent of the parties,
should any part or provision of this Agreement not comport with requirements of the
Interlocal Cooperation Act, that such part or provision nonetheless be binding and
enforceable to the maximum extent allowed by law other than the Act.
19.2 Cooperation. MOAB and DISTRICT agree to work cooperatively in the enforcement of
their respective sewer use ordinances and resolutions and all applicable local, state
and/or federal laws.
19.3 Corrective Action. If MOAB reasonably determines that the characteristic of DISTRICT'S
wastewater flows cause or contribute to the degradation of the MOAB Wastewater
System, despite the parties compliance with developed operation, monitoring and
maintenance schedules, all applicable permits, sewer use ordinances and resolutions, and
applicable pretreatment requirements (if any), MOAB shall notify DISTRICT in writing and
shall establish not less than thirty (30) days for DISTRICT to initiate any needed corrective
action, which may include investigation, testing and/or inspection. IF DISTRICT fails to act
in good faith to initiate a cure within thirty (30) days after receiving the notice and to
15
correct the noncompliant characteristic within thirty (30) days thereafter, MOAB may
take corrective action and assess the reasonable cost of the action to DISTRICT. MOAB
shall take quick action to cure any degradation that occurs in the MOAB Wastewater
System due to any MOAB Customer or otherwise.
19.4 State and Federal Jurisdiction. This Agreement is subject to the lawful rules, regulations,
decisions, orders or directives of the U.S. Environmental Protection Agency (EPA) and of
any agency of the state and/or federal government with jurisdiction over the parties or
the subject matter of this Agreement.
19.5 Right to Discharge. DISTRICT shall have the right to discharge into the MOAB Wastewater
System domestic, commercial, and industrial wastewater as long as DISTRICT complies
with the provisions of this Agreement, applicable law and any applicable permit.
Article 20. Disputes and Remedies.
20.1 Scope of Dispute Resolution. The parties acknowledge that disputes regarding the
interpretation or application of this Agreement may arise from time to time and agree
that, subject to other provisions of this Agreement, each party shall attempt to resolve
such disputes according to the provisions of this Article, unless otherwise provided in this
Agreement. The parties do not intend to limit the type of disputes or disagreements
arising under this Agreement which may be submitted to the dispute resolution
procedures as set forth herein.
20.2 Request for Clarification. In the event of an issue or question by either party regarding
any aspect of this Agreement, both parties shall attempt in good faith to resolve that issue
or answer that question amicably before proceeding to the remedies set forth in this
Article. Such resolution effort shall include communication between the parties outlining
the particular issues, proposing solutions, and any other action necessary to resolve the
dispute. The parties agree that a request for clarification and any response thereto should
be completed no later than thirty (30) calendar days after the request for the clarification
is made.
20.3 Negotiation. When a disagreement or dispute arises over the interpretation or
application of any provision of this Agreement, and such dispute does not constitute an
event of default, the parties will each direct staff members as they deem appropriate to
meet at a mutually convenient time and place to attempt to resolve the disagreement or
dispute through negotiation.
20.4 Mediation. When the parties to this Agreement are unable to resolve any dispute, claim
or counterclaim, or are unable to negotiate an acceptable interpretation or application of
any provision of this Agreement, the parties may mutually agree in writing to seek relief
by submitting their respective grievances to mediation. If mediation generates costs, the
16
costs will be shared equally between MOAB and DISTRICT and are not considered to be
operational costs.
20.5 Court. If the parties are unable to resolve any dispute, claim or counterclaim through any
of the other methods contained herein, they may take the issue(s) to state district court
in Moab, Utah as allowed by law.
Article 21. Indemnification.
Provided that nothing in this Agreement shall constitute or be construed as a waiver of any
governmental immunity provided to either party under the Governmental Immunity Act of Utah,
Title 63G, Chapter 7, of the Utah Code, to the greatest extent allowed by law, each party shall
indemnify and hold the other party harmless from and against any and all claims, costs, charges
and expenses including, without limitation, attorney's fees, expert witness fees, costs and
disbursements which may be imposed against MOAB or DISTRICT by any of the following
occurring during the term of the Agreement:
1. Any negligent or tortious act, error or omission of the indemnifying party, or any
of its personnel, employees, subcontractors, or consultants, in the construction, operation or
maintenance of the indemnifying party's Wastewater System; or
2. Any failure by the indemnifying party, or any of its personnel, employees,
subcontractors or consultants, to perform its obligations, either express or implied, under this
Agreement or any negligent or tortious act, error or omission of the indemnifying party, its
personnel, employees, consultants or subcontractors related to this Agreement.
Article 22. Compliance with Applicable Laws.
DISTRICT and MOAB, respectively, shall adopt, maintain and enforce the following within
their respective service areas in such a manner as at all times to comply with applicable
requirements of the Clean Water Act of 1972 and any further or supplementary amendments
thereto:
22.1 Charges. A system of charges to ensure that DISTRICT and MOAB, respectively, is each
able to pay its proportionate share of the cost of operation, maintenance, expansion,
rehabilitation and improvement of the MOAB Wastewater System.
22.2 Sewer Use Regulations. A resolution or ordinance related to sewer use containing
provisions that are, at a minimum, as stringent as provisions appearing in the current MOAB
Municipal Code, provided that such provisions are lawful and of uniform application.
22.3 Outside Use. DISTRICT shall not knowingly allow any user from outside its service area
to discharge Wastewater into its Sewer System without the prior written approval of MOAB.
17
Article 23. Miscellaneous Provisions.
23.1 No Waiver. The failure of either party to this Agreement to insist upon strict compliance
with any provision of this Agreement shall not constitute a waiver by said party of its right
thereafter to enforce any such provision or any other provision of the Agreement.
23.2 Changes in Law. Unless clearly stated to the contrary, any provision of this Agreement
which refers to a federal, state or local law, rule, regulation, standard or industry guideline,
shall be construed to refer to the most current applicable version of the same so as to
ensure that the requirements of this Agreement are consistent at all times with the
currently applicable requirements and standards. In the event of a conflict between this
Agreement and any applicable state or federal law, rule or regulation, the law, rule or
regulation shall control.
23.3 Non -assignable Agreement. Both parties may assign any right under this Agreement with
the written consent of the other party, and any unauthorized purported assignment shall
be null and void.
23.4 Interpretation of Agreement. This Agreement, or any portion thereof, shall not be
interpreted by a court of law to the detriment of a party based solely upon that party's
authorship of the Agreement or any provision herein. Each party has been involved in
the drafting and preparation of this Agreement and it is hereby expressly agreed that any
uncertainty or ambiguity contained herein shall not be construed for or against either
party. Each party has had the opportunity to be represented by legal counsel of its choice
in negotiating this Agreement. This Agreement shall be deemed to have been negotiated
and prepared at the joint request, direction and construction of the parties, at arm's
length, with the advice and participation of counsel, and will be interpreted in accordance
with its terms without favor to or disfavor against either party.
23.5 Governing Law. Except as expressly stated herein, this Agreement shall be made pursuant
to and shall be construed in accordance with the laws of the state of Utah.
23.6 Relationship of Parties. Neither the execution nor delivery of this Agreement nor actions
to complete this Agreement shall create or constitute a partnership, joint venture, joint
enterprise or any other form of business organization or arrangement between the
parties, except for the contractual arrangements specifically set forth herein. Except as
set forth herein, no party, or any of its agents, officers or employees, has any power to
assume or create any obligation on behalf of the other party. Neither party is nor shall
be the legal representative or agent of the other party for any purpose and a party shall
have no power to assume or create, in writing or otherwise, any obligation or
responsibility of any kind, expressed or implied, in the name or on behalf of the other
party, and neither party shall have any obligation with respect to the other party's debts
or other liabilities.
18
23.7 Modification or Amendment to Agreement. Except as provided herein, this Agreement
shall not be modified, amended or altered except upon the written agreement of MOAB
and DISTRICT, duly executed and adopted by the MOAB City Council and the DISTRICT
Board of Trustees.
23.8 Modification/Amendment of Ordinances/Rules and or Standards. Whenever either party
intends to amend its sewer use ordinance or resolution and/or any rules or regulations
related to the operation of its Wastewater System that may affect the other party, except
as otherwise specifically provided herein, such party shall notify the other party in writing
and provide a sixty-day (60) review and comment period.
23.9 No Rights to Third Parties. This Agreement is between MOAB and DISTRICT only and
creates no rights in or to third parties as beneficiaries under this Agreement. Nothing in
this Agreement is intended or shall be construed to confer upon or give to any person or
entity, other than the parties hereto, any right, remedy or claim under or by reason of
this Agreement. All covenants, terms, conditions and provisions in this Agreement shall
be for the sole and exclusive benefit of the parties. Nothing in this Agreement is intended
to interfere with any agreement of any party with any third party.
23.10 Severability. In the event that any provision of this Agreement is determined and
adjudged to be unconstitutional, invalid, illegal or unenforceable, the remaining
provisions of this Agreement shall remain in full force and effect, and the parties hereto
shall negotiate in good faith and agree to such amendments or modifications of or to this
Agreement or other appropriate actions as shall, to the maximum extent practicable in
light of such determination, implement and give effect to the intentions of the parties
hereto.
23.11 Headings and Captions. Headings and captions contained in this Agreement are for
convenience only and are not intended to alter any provision of the Agreement.
23.12 Entire Agreement. The terms, covenants, conditions and provisions of this Agreement,
including the present and all future attachments, shall constitute the entire agreement
between the parties hereto, superseding all prior agreements and negotiations. This
Agreement shall be binding upon and inure to the benefit of the respective successors
and permitted assigns of the parties hereto.
23.13 Notice. Any notice required or permitted under the provisions of this Agreement shall be
in writing, and be sufficiently given if delivered in person or sent by U.S. Mail, postage
prepaid, addressed as follows:
If DISTRICT:
Board Chair
Spanish Valley Water and Sewer Improvement District
3025 Spanish Trail Road
Moab, UT 84532
19
If MOAB:
Mayor
Moab City
217 E. Center Street
Moab, UT 84532
23.14 Counterparts. This Agreement may be executed in as many counterparts as the parties
deem necessary and each counterpart, so executed, shall be considered one and the same
instrument.
23.15 Force Majeure. By reason of Force Majeure, if any party shall be rendered partially or
wholly unable to carry out its obligations under this Agreement, and if such party shall
give notice in writing of the full particulars of Force Majeure to the other party
immediately after discovery of the occurrence of the event or cause relied upon, the
obligation of the party giving such notice, so far as it is affected by such Force Majeure,
with the exception of any obligation of DISTRICT to pay for services actually received from
MOAB hereunder, shall be suspended during the continuance of the inability then claimed,
and such party shall use its best efforts to remove or overcome such inability with all
reasonable dispatch.
23.16 Remedies. All remedies provided in this Agreement are distinct and cumulative to any
other right or remedy under this Agreement or afforded by law or equity, and may be
exercised concurrently, independently or successively.
23.17 Consent. Whenever a party's consent is required under this Agreement, such consent
shall not unreasonably be withheld.
23.18 Recitals. The recitals appearing at the beginning of this Agreement are incorporated by
reference as part of this Agreement.
23.19 Personnel and Equipment. Each party, to the extent needed, shall supply at its own cost
all personnel, equipment, supplies and materials necessary to perform its obligations and
intended actions as set forth in this Agreement.
23.20 Financing. The primary financial aspects of this Agreement are specified in Articles 5, 6
and 7. Each party will be responsible for maintaining its own financial budget for both
income and expenditures arising under this Agreement.
23.21 Personnel Status. MOAB and DISTRICT employees providing services pursuant to or
consistent with the terms of this Agreement are solely the officers, agents or employees
of the employing party. Each party shall assume any and all liability for the payment of
salaries, wages, and other compensation due or claimed to be due its employees,
including worker's compensation claims, and each party shall defend, indemnify and hold
the other party harmless there from. MOAB shall not be liable for compensation or
20
indemnity to any DISTRICT employee and DISTRICT shall not be liable for compensation
or indemnity to any MOAB employee for any injury or sickness arising out of his/her
employment, and each party hereby agrees to defend, indemnify and hold the other party
harmless against any such claim.
Article 24. MOAB Wastewater Advisory Board.
24.1 MOAB agrees to create a Wastewater Advisory Board with the DISTRICT. The Wastewater
Advisory Board will consist of two (2) members as appointed by the MOAB City Council
and two (2) members as appointed by the DISTRICT Board. Members will rotate in three
(3) year appointments. In addition, if in the future MOAB provides regional wastewater
services to additional regional Users, members from each respective regional customer
community may be added to the MOAB Wastewater Advisory Board. The Board may elect
a chairperson and a vice -chairperson from amongst its members. The Board shall meet
at least twice a year and may meet more often on an as -needed basis at the call of the
chairperson.
24.2 The Advisory Board may provide non -binding recommendations to MOAB in areas
concerning MOAB Wastewater System operations, budgets, improvements, policies,
permits, and procedures.
Article 25. INTERLOCAL COOPERATION ACT.
25.1 Statutory Requirements. In satisfaction of the requirements of the Interlocal Cooperation
Act in connection with this Agreement, the parties agree as follows:
A. This Agreement shall be authorized and adopted by resolution of the legislative body of
each party, pursuant to and in accordance with the provisions of Section 11-13-202.5 of the
Interlocal Cooperation Act;
B. This Agreement has been reviewed as to proper form and compliance with applicable law
by a duly authorized attorney on behalf of each party pursuant to and in accordance with
Section 11-13-202.5(3) of the Interlocal Cooperation Act;
C. A duly executed original counterpart of this Agreement shall be filed immediately with
the keeper of records of each party pursuant to Section 11-13-209 of the Interlocal
Cooperation Act; and
D. The Mayor of MOAB and Chairman of the DISTRICT Board of Trustees are hereby
designated as joint -administrators for all purposes of the Interlocal Cooperation Act,
pursuant to Utah Code Ann. § 11-13-207 of the Interlocal Cooperation Act, with all powers
conferred upon them by law. To the extent necessary, voting will be based upon one vote
per party, pursuant to Utah Code Ann. § 11-13-206(1)(g).
21
IN WITNESS WHEREOF, the parties have authorized this Agreement to be executed and attested
by their undersigned officers.
MOA. CITE', UTAH
Mayor
ATTEST:
City Recorder
SPANISH VA WATFRAND SEWER IMPROVEMENT DISTRICT
Ch irpClerk
Exhibits to This Agreement
Exhibit 1- Metering Stations and Connection Points
Exhibit 2-Bowen Collins Technical Memorandums #1 and #2
Exhibit 3-Spanish Valley Water and Sewer Improvement District Service Area Boundary
22
Bowen Collins
& Associates, Inc.
.✓ CONSULTING ENGINEERS
TECHNICAL MEMORANDUM #2
October 2016 Update
TO: Rebecca Davidson
Moab City
COPIES: File
FROM: Keith Larson P.E.
Jeff Beckman P.E.
Bowen, Collins & Associates
154 East 14000 South
Draper, Utah 84020
DATE: October 10, 2016
PROJECT: Sewer Rate Study
SUBJECT: Cost Share of Future Sanitary Sewer System Costs
INTRODUCTION
Moab City (City) is in need of a new wastewater treatment plant. As part of the planning process
for the plant improvements, the City has retained Bowen Collins & Associates (BC&A) to prepare a
sewer rate study. The purpose of this study will be to help the City develop a sustainable rate plan
to finance construction of the new plant and its subsequent operation. As part of this plan, it will be
important to fairly distribute costs among the various users of the plant. The purpose of this
memorandum is to examine the different types of future users that will benefit from the plant and
calculate an appropriate cost share for each.
This memorandum, originally completed on October 28, 2015, has been updated to reflect
additional information obtained since that time. The additional information driving the update can
be grouped into four categories:
1. Moab City 0&M Budget: An updated Moab City 0&M budget has been made available to
BC&A. The cost share model has updated to reflect that budget.
2. Impact Fees: In the original memorandum, impact fees were estimated based on
information available at the time. Since October 2015, a new impact fee study has been
completed and a new impact fee structure has been established. The cost share model has
been updated to reflect those proposed impact fees.
3. Wastewater Treatment Plant Costs: Since October, the construction costs of the
wastewater treatment plant have been more accurately estimated and the loan interest rate
is now known. The upfront cash contribution amounts of each entity dedicated to
construction capital costs for the new wastewater treatment plant was not finalized in
October 2015. The initial investment amounts have now been tentatively agreed upon.
EXHIBIT
2
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
4. Updated Connection and Flow Data - The original memo was based on connection and
flow data from 2014. To best reflect actual connections at the time of the potential
treatment plant capacity agreement, all data was updated to reflect connections in August of
2016.
PROPOSED COST SHARE APPROACH
BC8zA has analyzed the expected future costs associated with Moab City's wastewater system. This
includes construction and future operation of the new wastewater treatment plant as well as the
other operating and capital costs of the system. BC&A also met with and interviewed personnel
from Moab City and Spanish Valley Water & Sewer Improvement District (SVW&SID) to gain insight
into their priorities regarding how the system will be used and operated. Based on our discussions,
we have identified the following objectives for division of future costs associated with operation of
the wastewater system:
1. Moab City wants to maintain ownership of the new treatment plant.
2. The division of costs between entities should be as fair as possible based on the actual cost
of service to each entity.
3. The final cost division should be as easy as possible to implement and administer.
Based on these objectives, BC&A has assembled a proposed cost share approach for the Moab City
wastewater system. The major components of the proposed approach are summarized in Table 1.
The approach is discussed in detail in the following sections.
Capital Costs
There are two types of costs that must be divided between those who are using the system, capital
costs and operation & maintenance costs. This section discusses capital costs. Capital costs can
further be divided into treatment costs and collection system costs.
Treatment. While not the only item of importance in this discussion, construction of a new
treatment plant is the largest single issue that will affect future costs for Moab City. Construction of
the plant will include two types of capacity:
• Replacement of Existing Capacity - The existing Moab City plant currently provides
treatment for up to 1.17 million gallons per day (mgd) of wastewater during the peak
month of the year. There are also additional users that are currently constructing homes
and businesses that will add additional flow to the plant increasing the total committed
capacity to 1.19 mgd. Since the old plant will be abandoned, the new plant must have
capacity to continue to serve these existing users. It is proposed that the portion of plant
costs used to replace existing capacity be divided among existing users based on their
actual use of committed capacity at the time the plant is constructed. In dividing these
costs, several items should be considered:
o Treatment Equivalency - When it comes to treatment capacity, it is not adequate
to look at the portion of flow used by each entity only. The strength of wastewater
must also be considered. This is especially true in Moab. The Moab plant has
historically had a significant portion of its capacity used to receive septage from the
several campgrounds and recreational areas in the vicinity of the City. This is
expected to continue in the future. The strength of wastewater coming from
BOWEN COLLINS & ASSOCIATES
MOAB CITY 2
Table 1
Proposed Cost Share Matrix
Cost Category
Ca ' Costs Operations and Maintenace
Cost Area
Treatment
i�gllec]sh
Treatment
11111111118=SOMM
System O&M
Type of Costs
Replacement of Existing
Capacity
Replacement of Existing Capacity
System O&M
How costs will be paid for?
Cash oitNand
and/or
Use Charges**
! }iy t.1r E ! iv.
Use Charges
„I, ,c • ', ; ..
Use Charges
Use Charges
What is the basis of total
costs?
Portion of new treatment plant
costs required to serve existing
users
Portion of new treatment plant
costs available to serve future
users
Annual collection system rehabilitation
and replacement budget (1% system
replacement)
Projected costs of construction
Annual treatment O&M per
Moab budget
Annual collection O&M per
Moab budget
•
How are costs divided?
-
Proportional use of plant
capacity based on treatment
ERUs. The number of
treatment ERUs are calculated
based on the fomula established
for each type of user in the ERU
study (to be based on. peak-
month flow and strength).
Not divided between entities.
Capacity is distributed based on
a "fast come, first serve" basis. 'be
As a result, the owner of the
facility (Moab City) would carry
all initial costs of this capacity,
but -would also receive all
future revenue from related
impact fees.
Proportional use of Moab collection
facilities based on flow ERUs. This will
calculated in two steps:
1. Use of each pipe calculated based on
proportional flow ERUs conveyed in the
pipe.
2. Contribution- of each. pipe to the
overall system weighted by length times
flow capacity of pipeline assuming State
minimum slope (estimate of required
O&M effort).
Same as treatment capital costs for
future capacity.
Proportional use of plant
capacity based on treatment
ERUs
Same as collection capital
costs for existing capadty.
When are costs divided?
Calculated only once based on
existing use of capacity.
N/A
Recalculated with each rate study
(approrimomlyonce every 3 to 5 years).
N/A
Recalculated annually.
Same as collection capital
costs for existing capacity.
Notes
I. Applies to initial 20-year
period to pay for the new plant
only. After the plant has been
paid for, a treatment rehab and
replacement budget will need to
be established and costs split
similar to treatment O&M.
None.
1. The number of flow ERUs are
calculated based on the fomula
established for each type of user in the
ERU study (to be based on peak month
flow only).
2. ERU study to be updated periodically.
1. Collection impact fees will need
to be calculated for at least two
service areas. One for Moab only
facilities and one for joint facilities.
Only the joint facility fee will apply
to users outside the City and be
remitted to Moab.
1. ERU study to be updated
periodically.
Same as collection capital
costs for existing capacity.
x* i ach entity will be asked to contribute cash on hand for some minimum percentage of their share of existing treatment costs (tc atf endues contr
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
septage is 40 to 50 times greater than that of typical domestic wastewater and has a
significant impact on the treatment process. To account for the full range of issues
affecting treatment costs, BC&A would propose defining treatment demand for each
entity (including septage) in terms of a treatment based equivalent resident unit
(treatment ERU). This process is discussed in detail in a memorandum that has
been included in the appendix of this report. Once the number of treatment ERUs
has been defined for each entity, this can be used to calculate the proportionate use
of existing capacity to be replaced.
o Cash vs. Bonding - This cost category represents a large one-time expenditure for
each entity. As a result, each entity will have some decisions to make regarding
how to pay for their portion. To minimize the amount of bonding the City has to
incur, each entity is planning to contribute cash on hand for a portion of their share
of existing treatment costs. Moab City and SVW&SID have tentatively agreed to
make upfront contributions in the amounts of $1,504,000 and $800,000,
respectively. This money could come from impact fee balances (pending results of
legal review) or other reserves. The remaining portion of each entity's cost liability
will be put into a bond and paid for over time through annual user charges. If
desired, each entity could be allowed to contribute additional cash on hand to
reduce their total liability for this cost category. If additional cash on hand is
contributed, the entity's portion of the remaining bond costs would be reduced
correspondingly.
o Rehabilitation and Replacement - It should be noted that this proposed cost share
is for the initial construction costs of the treatment plant only. Since the plant will
be brand new, this should represent the only required capital costs at the plant for
the next several years. As the plant ages, however, a treatment plant rehabilitation
and replacement budget will eventually need to be established. When this occurs,
costs can be divided as discussed for treatment 0&M (to be discussed later).
• Construction of Capacity for Future Users - The new treatment plant is expected to have
a peak month, average day capacity of 1.75 mgd. This means that when the plant is
completed, it is expected that there will be approximately 0.56 mgd of capacity available for
future users. It is not anticipated that any entities will be reserving this future capacity in
the treatment plant. Instead, future capacity will be distributed on a "first come, first
serve" basis to be paid for through impact fees. Since Moab City will maintain ownership of
the plant, it is expected that Moab City will be responsible to carry all debt associated with
future capacity. However, this also means that Moab City will receive all future impact fees
associated with treatment, regardless of where the fess are collected.
It should be noted that this concept applies to both individual lot owners as well as other
entities. For example, there are a large group of potential customers in San Juan County
that currently have sewer service through septic systems. There has been some discussion
of this group bringing their wastewater to Moab City. If this were to occur, Moab would
require an agreement with San Juan County that would include the payment of impact fees
sufficient to secure the capacity in the plant required to serve the new users.
Collection. As with treatment, collection system capital costs will also include two types of
capacity:
BOWEN COLLINS & ASSOCIATES
MOAB CITY 3
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
• Replacement of Existing Capacity - Sewer system collection pipelines have a finite
lifespan and eventually need to be replaced. Paying for these costs becomes the
responsibility of all who use capacity in the pipelines. It is proposed that these costs be
divided using the following principles:
o Flow Equivalency - BC&A would propose defining flow demand for each entity in
terms of a flow based equivalent resident unit (flow ERU). This process is
discussed in detail in a memorandum that has been included in the appendix of this
report. In short, the flow ERU would be based on peak month projected flow for
various types of users. This is in contrast to the alternative approach of defining
flow based on average annual volume. Peak month flow is deemed a fairer basis of
cost sharing than annual volume because the collection system must be sized based
on peak flows.
o Use of Facilities - While Moab customers generally benefit from the entire
collection system, the same is not true for other entities. SVW&SID only uses
capacity in a relatively small number of Moab's trunk lines to convey its wastewater
to the plant. To account for this difference in the use of Moab collection facilities, it
is proposed that the portion of use be calculated in two steps:
1. The percent usage of each pipe can be calculated based on proportional
flow ERUs conveyed in the pipe (e.g. if SVW&SID has 400 ERUs in a pipe
that is conveying 1,000 total ERUs, it would be assigned 40% of that pipe's
capacity).
2. Once the capacity used in each pipeline is calculated, the second step is to
calculate the contribution of each pipe to the overall system. This can be
done by looking at a weighted use of capacity for all pipes in the system. It
is proposed that the pipelines contribution to the system be weighted by
the length of each pipe times its flow capacity assuming State minimum
slope. Flow capacity is considered representative of the overall required
maintenance effort associated with each pipe. Using the State minimum
slope allows the system to be analyzed given limitations relative to actual
pipe slope data.
o Annual Costs - There are two possible approaches for determining collection
system replacement costs. One approach would be to look at each replacement
project individually and then determine the exact cost to each entity depending on
which pipelines are being replaced. In addition to being extremely complicated,
this approach has the added disadvantage of resulting in uneven costs for entities
outside of Moab City. In some years, these entities may have no costs as the City
focuses its efforts on replacement of pipelines serving only Moab City customers. In
other years costs, the outside entities could be hit with extremely high costs when a
major trunk line needed to be replaced. This creates problems for outside entities
on two fronts. First, it makes it very difficult to set consistent sewer rates. Second,
if the entity does not have enough money to fund a large project, it will be difficult
to bond for the project since it is owned and will be constructed by Moab City.
What appears to be a better approach is to charge a fixed amount to each outside
entity based on their expected average annual portion of collection system
replacement costs. In this case, Moab would collect the amount for each entity on a
consistent basis and then spend the money as needed. If bonding was required for
BOWEN COLLINS &ASSOCIATES
MOAB CITY 4
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
particularly large projects, it could all be handled by Moab internally. The proposed
budget amount would be initially set at 10/0 of the Moab system replacement value.
Each entity would pay a portion of this based on its percent use of the overall
system as discussed previously. The proposed budget equates to an average life
span of 100 year for sewer system collection components. This is likely longer than
can realistically be expected, but is a good rule of thumb for system renewal when
asset management data is limited.
o Periodic Recalculation - It is expected that the system value and each entity's use
of the system will slowly change over time. As a result, it will be important to
periodically re-examine each of these elements. It is proposed that these items be
recalculated with each rate study (assumed to be once every 3 to 5 years)
• Construction of Capacity for Future Users - Although not specifically identified at this
time, it is expected that some additional pipeline projects will need to be constructed for
the purpose of accommodating flow from future users. Similar to the treatment plant, it is
not anticipated that any entities will be reserving future capacity in these pipelines.
Instead, future capacity will be distributed on a "first come, first serve" basis to be paid for
through impact fees. Since Moab City will maintain ownership of the pipeline, it is expected
that Moab City will be responsible to carry all costs associated with future pipeline
capacity. However, this also means that Moab City will receive all future impact fees
associated with collection capacity inside the Moab City system, regardless of where the
impact fees are collected.
This does not mean that other entities cannot have their own collection impact fee.
However, their fee will need to be separate from that collected for capacity inside the Moab
collection system.
Operation and Maintenance Costs
The second major category of costs in the Moab City wastewater system is operation and
maintenance (0&M) costs. As with capital costs, operation and maintenance costs can be divided
into treatment costs and collection system costs.
Treatment. It is proposed that operation and maintenance costs at the treatment plant be divided
based on treatment equivalency as defined previously in the section regarding treatment capital
costs. The only difference between capital costs and 0&M costs is that 0&M costs will be
reexamined on an annual basis. Each year the total 0&M budget will be updated to reflect actual
costs and the cost share will be updated to reflect the growth for each entity during the previous
year.
It should be emphasized that, under this approach, all entities would be charged a fixed amount
each month based on the number and type of customers connected to the system. This is in
contrast to a variable approach in which the amount charged each month is based on metered flow
and strength. BC&A carefully considered both of these approaches. Ultimately charging a fixed
amount each month was selected for the recommended approach because of several advantages:
• Equitable Distribution of Costs - The basis of the fixed charge will be the treatment ERUs
per entity as discussed above. These ERUs represent the expected demand of customers
during peak demand periods. The great majority of sewer system costs are most closely
tied to peak capacities. Peak demands determine the sizing of all capital equipment which,
in turn, determines most maintenance costs. Peak demands also establish staffing costs, the
BOWEN COLLINS &ASSOCIATES
MOAB CITY 5
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
largest single expenditure associated with 0&M. In contrast, 0&M costs associated with the
volume of wastewater produced are comparatively small (power consumption and some
chemical costs). Given the two alternatives, charging based on peak demand is much more
reflective of the true cost of service for each entity.
• Revenue Stability - Fixed charges mean that revenue from outside entities will be
consistent from month to month. This will help Moab City to plan and manage its annual
budget. It also simplifies budgeting for outside entities since they can plan on a consistent
expense for treatment from month to month.
• Simplicity - Fixed charges are extremely easy to calculate and administer. All that is
necessary is to keep track of the number and type of new connections each year so that ERU
values for each entity can be updated annually. In contrast, charging variable rates requires
accurate flow metering that all parties agree on. Depending on how the rates are
structured, it may also require frequent sampling of wastewater from each entity to assign
strength values. These additional complications can add significantly to the bottom line
cost of operating the system.
Collection. It is proposed that operation and maintenance costs for the collection system be
divided in the same manner as defined previously in the section regarding collection replacement
capital costs for existing capacity.
CALCULATED COST SHARE BASED ON PROPOSED APPROACH
Based on the approach described above, BC&A has assembled a cost share model for the Moab City
wastewater system. The full, detailed model is contained in the appendix of this report. The
following sections highlight the major results of the model. It should be noted that the model
includes a year by year projection of shared system costs. This is a projection based on the best
available information regarding development patterns. The actual cost share between entities will
depend on actual system growth and may vary slightly from the results shown here.
Equivalent Residential Units
There are currently three types of users of the Moab City system:
• Moab City customers
• Customers from Spanish Valley Water & Sewer Improvement District (SVW&SID)
• Septage Haulers
Based on historic water use records, existing ERUs connected to the Moab sewer system (or ERUs
for which capacity has been committed, i.e. projects that have already paid an impact fee but are not
yet connected) are as summarized in Table 2.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 6
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Table 2
Existing ERUs
Flow
Treatment
Customer Category
Moab
SVW&SID
Septage
Moab
SVW&SID
Septage
Residential - Single Family
1,768
1,963
1,768
1,963
Residential - Multifamily
230
75
230
75
Overnight Accommodations
1,980
113
1,980
113
Commercial/Retail
603
94
603
94
Office
113
39
113
39
Restaurant
396
19
893
43
Schools
29
22
29
22
Gas Station/Convenience Store
88
93
88
93
RV/Campground
142
213
285
426
Other
118
76
38
118
76
1,373
Total
5,467
2,707
38
6,107
2,944
1,373
Percent of Total
66.6%
33.0%
0.5%
58.6%
28.2%
13.2%
As can be seen in the table, Moab is responsible for approximately 2/3rds of the flow to the
treatment with the other 1/3rd coming from SVW&SID. Septage is an insignificant contributor to
overall flow. However, when strength is considered, septage is using 13.2 percent of the total
treatment capacity.
In addition to these existing customers, the model includes the following expected future users of
the Moab City system:
• USU - USU is currently exploring plans for further development of facilities for its Extension
in Moab. Over the planning period (next 20 years), this is expected to add an average day
flow of 144,500 gallons per day (166,175 gpd average day, peak month) to the total flow
into Moab City. It is expected that USU will be a retail customer of SVW&SID and will add to
their total flow.
• San Juan County - Development in San Juan County is all currently on septic systems. At
some point in the future, it is expected that additional capacity will be desired and that all
development (both existing and future) will be brought to Moab's system. For the purpose
of this analysis, it has been assumed that San Juan will have approximately 265 flow ERUs
connecting to the system in 2020. If San Juan connects, it is expected that the County will be
a new wholesale customer (i.e. not a retail customer of either Moab or SVW&SID).
Based on the new customers described above and projected growth rates for existing customers,
projected ERUs to be connected to the Moab sewer system are as summarized in Table 3.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 7
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Table 3
Projected ERUs - 2035
Flow
Treatment
Year
Moab
SVW&SID*
Septage
San
Juan
Moab
SVW&SID*
Septage
San
Juan
2017
5,467
2,707
38
0
6,107
2,944
1,373
0
2022
5,774
3,259
47
277
6,450
3,590
1,688
301
2027
6,099
3,907
55
308
6,813
4,354
2,004
334
2032
6,442
4,588
64
342
7,196
5,152
2,320
372
2035
6,657
5,014
69
365
7,436
5,649
2,509
396
*Includes projected flows from USU Extension.
Use of Moab Wastewater Collection System
As discussed previously, customers outside of Moab City will only use a portion of the wastewater
collection system. Following the procedure discussed above, SVW&SID's current weighted use of
the Moab Collection System is summarized in Table 4.
Table 4
SVVV&SID's Current Weighted Use of Moab's Collection System
Size (in)
Total
Length
(ft)
Weighted
Capacity*
(ft-cfs)
SVW&SID
Proportional
Use of
Capacity
SVW&SID
Weighted
Capacity*
Moab
Weighted
Capacity*
6
37,658
14,981
0.0%
-
14,981
8
99,656
76,368
1.3%
1,006
75,362
9
729
695
0.0%
-
695
10
11,071
12,869
7.1%
910
11,959
12
7,857
13,165
76.6%
10,090
3,075
15
3,601
9,032
14.1%
1,277
7,756
18
10,106
36,874
22.1%
8,139
28,735
21
1,125
5,653
0.0%
-
5,653
24
745
4,782
49.3%
2,359
2,423
30
1,050
10,401
35.0%
3,636
6,765
3 (Force Main)
2,536
871
0.0%
-
871
4 (Force Main)
827
505
0.0%
-
505
Total
176,960
186,197
27,417
158,780
SVW&SID Current Use of Collection System
14.7%
SVW&SID Current Portion of Total Flow
31.4%
SVW&SID Proportional Use of Collection System Capacity
46.9%
*Weighted capacity based on total length times the capacity of each pipeline at the State minimum slope.
Capacity for force mains based on velocity of 7 ft/sec.
As is summarized in the table, SVW&SID only uses 14.7 percent of the collection system capacity,
even though it accounts for 31.4 percent of the total flow. This means that SVW&SID's use of the
collection system is only 46.9 percent of its proportional contribution of flow.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 8
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
Cost Share Model Results
Results from the cost share model are summarized in Tables 5 through 7. Tables 5 and 6 provide a
summary of the percent of cost associated with each entity over time for collection and treatment
costs, respectively. Table 7 provides the projected cost share for the new treatment plant assuming
completion of the plant in 2018.
Table 5
Projected Cost Share - Collection System Costs*
Year
Moab
SVW&SID*"
Septage
San Juan
2017
84.5%
15.5%
0%
0%
2022
82.3%
16.3%
0%
1.4%
2027
80.9%
17.7%
0%
1.4%
2032
79.7%
18.8%
0%
1.4%
2035
79.2%
19.4%
0%
1.4%
*Projected future costs are estimates based on current growth nrniPrtinns_
Actual cost share will be recalculated as described in this memorandum based
on actual system growth and development.
**Includes projected flows from USU Extension.
Table 6
Projected Cost Share - Treatment Costs*
Year
Moab
SVW&SID"
Septage
San Juan
2017
58.6%
28.2%
13.2%
0%
2022
53.6%
29.8%
14.0%
2.5%
2027
50.4%
32.2%
14.8%
2.5%
2032
47.9%
34.3%
15.4%
2.5%
2035
46.5%
35.3%
15.7%
2.5%
*Projected future costs are estimates based on current growth nroiections.
Actual cost share will be recalculated as described in this memorandum based
on actual system growth and development
**Includes projected flows from USU Extension.
Table 7
Projected Cost Share - Treatment Plant Construction Costs
Entity
Total Cost
Portion of Total
Moab
$4,782,288
38.25%
SVW&SID
$2,305,396
18.44%
Septage
$1,961,694
15.69%
San Juan
$0
0%
Future Growth
$3,454,623
27.63%
Total
$12,504,000
100%
As can be seen in the tables, the current model shows costs slowly shifting away from Moab City
and onto other users. This is the result of higher projected growth rates for development outside of
the City. However, as noted above, the values contained in these tables are only projections based
on estimated of future development patterns. The actual cost share between entities in future years
will depend on actual system growth and may vary slightly from the results show here. In future
BOWEN COLLINS &ASSOCIATES
MOAB CITY 9
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
years, it is expected that the projections in the rate model will be replaced with actual values for
each entity to more accurately calculate the appropriate cost share and corresponding rates.
Approximate Wastewater Rates
The primary focus of this memorandum has been the development of cost share calculations to
divide costs between the several entities. It does include the information to perform a
comprehensive rate study and calculate detail rates for each entity. However, based on information
provided by each entity regarding historic rates and annual revenues, it is possible to estimate
approximate monthly rates for each of the entities as shown in Tables 8. The monthly rates
estimated in Table 8 take into account the initial capital investment that each entity has agreed to
pay towards construction of the wastewater treatment plant and assumes securing a loan for the
remaining capital costs.
Table 8
Approximate Residential Future Wastewater Rates - Moab Portion of Bill Only
Year
Moab
($/month)
SVW&SID
($/month)
Septage
($/gallon)
$0.09
Historic
$16.90
$7.70
2020
$37.72
$17.09
$0.17
2025
$40.38
$17.81
$0.16
2030
$43.46
$18.84
$0.16
2035
$45.52
$19.59
$0.16
It should be emphasized that these costs are for the Moab City portion of each bill only. For Moab
residents, this represents their full sewer bill. For other entities, however, there will be additional
costs for the operation and maintenance of their individual collection systems.
In both of the tables, it is noted that the amount of increase from year to year is not consistent
between entities. There are even decreases in some cases. This is a result of the differing growth
rates between entities and their ratio of treatment plant costs to other costs. For example, in the
case of septage customers, all of their costs are associated with treatment and they have a higher
than average projected growth rate. As a result, the projected growth allows the initial
construction costs of the plant to be distributed over an increasing number of users over time. This
results in a small decrease in the cost per customer over time. Conversely, treatment costs in Moab
are a much smaller portion of total costs and it has the lowest expected growth rate. This means
that inflation associated with collection system and other costs overshadows any reduction in
treatment plant payments and the overall rate increases gradually over time.
CONCLUSIONS AND RECOMMENDATIONS
This memorandum provides a proposed approach to sharing costs in the Moab wastewater system,
including construction of a new treatment plant. It is recommended that Moab City review the
proposed approach with all potential stakeholders in the treatment project to collect input and
finalize the approach. This will become the basis for a final agreement between the various entities.
Specific items that should be reviewed and agreed upon should include:
1. Moab continued ownership of treatment plant
2. First come, first serve policy for future capacity
3. ERU calculation policy - Both flow and treatment based
BOWEN COLLINS & ASSOCIATES
MOAB CITY
10
TECHNICAL MEMORANDUM #2: COST SHARE OF SYSTEM COSTS
4. Use of fixed monthly charges to each entity based on flow and treatment ERUs instead of
variable monthly charges based on volume and strength measurements
5. Final agreement on cash contributions toward initial treatment plant construction costs to
be contributed by each entity
6. How septage will fund its required portion of treatment plant construction costs (initial
payment vs. incorporated into future rates)
Once the cost share principles discussed in this memorandum are finalized and adopted, BC&A will
be able to calculate specific rates for Moab City customers in greater detail.
BOWEN COLLINS & ASSOCIATES
MOAB CITY
11
Appendix A
ERU Calculation Memorandum
Bowen Collins
& Associates, Inc.
CONSULTING ENGINEERS
TECHNICAL MEMORANDUM ## 1
TO: Rebecca Davidson
Moab City
COPIES: File
FROM: Keith Larson P.E.
Jeff Beckman P.E.
Bowen, Collins & Associates
154 East 14000 South
Draper, Utah 84020
DATE: September 21, 2016
PROJECT: Sewer Rate Study
SUBJECT: Residential Equivalent Study
INTRODUCTION
Bowen Collins &Associates (BC&A) has been retained by Moab City (City) to do a study on equivalent
residential units (ERUs) for the City. An ERU is the typical water use amount for a single family
residence measured in gallons per day or gallons per month. This represents the average flow and
strength of wastewater for a residential connection to the City.
The purpose of this study is to create a basis for the City to relate flow from larger non-residential
customers to the flow of an average residential connection or ERU. By defining the flow of all the
different customer types in terms of ERUs, the City will be able equally allocate the costs of service in
the sewer system to the various system users. This memorandum examines the basis of an ERU in
the City and proposes a method of ERU calculation for different customer types.
ERU DEFINITION
The definition of an ERU should be defined based on the average characteristics of a single family
residential connection. Based on water use records for 2016, the average residential connection had
indoor water use of approximately 4,400 gallons during the peak month of the year. Historically, the
City has used an expected domestic wastewater concentration of 300 mg/L when calculating
Biological Oxygen Demand (BOD) loading and 280 mg/L when calculating Total Suspended Solids
(TSS) loading.
Based on this information, the following definitions and equations are proposed to calculate the
number of ERUs for different customer types. To accurately reflect the impact of customers on both
collection and treatment facilities, ERUs will be defined in terms of both flow and strength. Fractional
ERU values are rounded up to the next whole number.
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
ERU Definition Based on Flow
(1) 1 ERU flow = 4,400 gal/month
ERU Definition Based on BOD
(2) 1 ERUBOD = 300 mg/L x (8.345 x 10-61bs L/mg gal ) x 4,400 gal/month
1 ERUBOD = 11.0 lbs/month
ERU Definition Based on TSS
(3) 1 ERUTss = 280 mg/L x (8.345 x 10-61bs L/mg gal ) x 4,400 gal/month
1 ERUTss= 10.31bs/month
Equation to Calculate ERU Value Based on Flow
(4) # of ERUFlow = Customer Flow gal/month
4,400 gal/month per RE
Equation to Calculate ERU Value Based on BOD
# of ERUBOD = BOD. mg/L x (8.345 x 10-6) x Cust. Flow gal/month
11.0 lbs/month per ERU
Equation to Calculate ERU Value Based on TSS
(6) # of ERUTss = TSSsonc mg/L x (8.345 x 10-6) x Customer Flow gal/month
10.31bs/month per ERU
Equation to Calculate Number of Treatment ERUs Based on Cost Weighted Average of Flow, BOD, &
TSS
(5)
(7)
# of Treatment ERUwtAve = (ERUFlowx 33.3%) + (ERUBOD x 33.3%) + (ERUTss x 33.3%)
The cost weighted average approach described above takes the estimated percentage spent by the
City on treatment based on total flow, BOD, and TSS and calculates a weighted ERU value. For this
study, costs have been divided evenly between the three categoriesl.
1 To develop a more refined estimate of actual costs would require a full cost -of -service analysis of the detailed design of
the new treatment plant and its subsequent operation costs. Since this data will not be available for several years, the costs
have been approximated as shown. These are believed to be relatively accurate estimates based on costs as observed at
other established plants. A cost analysis of the Central Valley Water Reclamation Facility in Salt Lake City, Utah calculated
costs at 30% flow, 31% BOD, and 39% TSS. A similar analysis of the Timpanogos Wastewater Treatment Plant in Pleasant
Grove, Utah calculated costs at 56% flow, 24% BOD, and 20% TSS. While costs will vary from plant to plant depending on
the treatment process used and the quality of wastewater being received, the estimate contained here seems reasonable in
the absence of additional data.
BOWEN COLLINS & ASSOCIATES
MOAB CITY 2
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
CUSTOMER ERU CATEGORIES
Based on the City's current customer billing types, BC&A would propose ten different customer
categories for defining ERUs as identified in Table 1.
Table 1
Proposed ERU Customer Categories
Customer Category
Notes
Residential - Single Family
Includes typical single family residential along with trailers,
town homes, duplexes, and large multifamily (see below).
Residential - Multifamily
Includes all apartments and condos up to a maximum size of
1,500 square feet per unit. All larger multifamily to be
grouped with single family residential.
Overnight Accommodations
Any overnight accommodations with sewer service including
hotels, motels, and bed & breakfasts.
Commercial/Retail
Office
Restaurant
Any business whose primary function is to prepare and serve
food (including fast food).
Schools
Gas Station/Convenience Store
RV/Campground
Other
Any development that is not adequately represented by one
of the categories above. Could include medical, churches, car
washes, laundromats, etc.
ERU CATEGORY CALCULATIONS
For the proposed customer categories listed above, BC&A has developed a recommended definition
for both Flow ERUs and Treatment ERUs as summarized in Table 2. Definitions for Flow ERUs in this
table are based on historic flow data as available from 2016 water use records for Moab City
customers. Flow equivalency has been based on estimated peak month indoor water use as
approximated from April 2016 water use.
Because water quality data is not readily available for the various Moab City customer categories,
Treatment ERUs have been based on data collected as part of a detailed water quality study
completed by BC&A for Mt. Olympus Improvement District completed in 2012. Historical data used
to assemble the results are contained in Appendix A.
BOWEN COLLINS &ASSOCIATES
MOAB CITY 3
TECHNICAL MEMORANDUM #1 : RESIDENTIAL EQUIVALENT STUDY
Table 2
Proposed ERU Definitions by Customer Category
Customer Type
Flow Only Definition
1 ERU =
Treatment Definition
1 ERU =
Residential - Single Family
1 residence
1 residence
Residential - Multifamily
1.8 units
1.8 units
Overnight Accommodations
1.2 units
1.2 units
Commercial/Retail
6,500 ft2
6,500 ft2
Office
4,000 ft2
4,000 ft2
Restaurant
10.6 Seats
4.7 Seats
Schools
15 Students
15 Students
Gas Station/Convenience Store
3,600 ft2
3,600 ft2
RV/Campground
By Study
By Study
Other
By Study
By Study
It is recommended that the definitions proposed in Table 2 be used to calculate the number of Flow
and Treatment ERUs in the Moab, Spanish Valley Water & Sewer Improvement District, and other
systems. This can be accomplished as outlined in Equation (8).
Equation to Calculate Number of ERUs Based on ERU Definition
(8) Number of ERUs = Customer Facility Size (ft2. # seats. etc.)
ERU Definition
BOWEN COLLINS &ASSOCIATES
MOAB CITY 4
Moab Historical Water Use by Customer Category (2016)
Residential - Single Family
1 Residential
Connections
1365
Units
1368
Quantity
(Peak Month)
- kgals
6019- 2
Peak Month Indoor
Water consumption
kgals
4.40
Peak Month Indoor
Water consumption
gpd
144.7
ERUs
1368.0
2 Residential
11
18
79.2
4.40
144.7
18.0
Trailer Courts
12
349
1490.5
4.27
140.4
338.8
Trailer Court/House
1
3
30.0
10.C10
328.8
6.8
Trailer Court/2 Apts/House
County Residential
2
12
22
12
108.0
4.91
4.40
161.4
144.7
24.5
12.0
Total
1403
1772
7779.741787
4.39
144.3
1768.1
Residential - Multifamily
House/Apartments
8
16
39.1
2.4
80.4
8.9
Apartments
77
398
972.9
2.4
80.4
221.1
Total
85
414
1012
2.4
80.4
230.0
Overnight Accommodations
Hotel/Motel/B&B
64
2393.1
8774.9
3.7
120.5
1994.3
Bed & Breakfast 52.94
2
2
2.0
1.0
32.9
0.5
Restaurant Correcticr
-64.9
-13,0
-426.7
Total
61
2390.142857
8711.957143
3.6
119.8
1980.0
Commercial/Retail
Business/House
6
11
104.0
9.5
310.8
23.6
Business
138
138
3277.2
23.7
780.8
744.8
Business - 4 month water usage
County Business
6
1
7
1
22.3
6.0
3.2
6.0
104.6
197.3
5.1
1.4
2 Commercial
1
2
2.0
1.0
32.9
0.5
Restaurant Correction
-132.2
-14.7
-482 9
RV/Campground Correction
-626.1
-208.7
-6861.4
2 3
Total
140
147
2653.209368
-180.0
-5918.0
603.0
Office
Office Space Rental
24
24
556.0
23.2
761.6
126.4
Restaurant Correction
-57.8
4/5.1
Total
20
20
498.2
24.9
819.0
113.2
Restaurant
Restaurant/Bar
23
23
1461.0
63.5
2088.4
332.0
Restaurant/Bar Billed Under Other Categories
...
. ,
281.3
..... .
Total
43
43
1742.3
40.5
1332.1
396.0
Schools
School
7
7
97.0
13.9
455.6
22.0
School - 4 month winter usage
6
6,
31.0
5.2
169.9
7.0
Total
13
13
128
9.8
323.7
29.1
Gas Station/Convenience Store
Gas Station/Convenlence Store
6
6,
411.4
68.6
2254.4
93.5
Restaurant Correctim
-26.4
•13.2
-414 0
....
Total
4
4
385.0
96.3
3164.6
87.5
RV/Campground
RV/Campground Billed Other Categories
-
626.1
208.7
6P 61. 4
Total
3
3
626.1
208.7
6861.4
142.3
Other
Church
1
1
1.0
1.0
32.9
0.2
Church -4 months Winter Usage
B
8
57.0
7.1
234.2
13.0
Govt -4 month winter usage
Medical Office
3
4
3
4
10.0
21.0
3.3
5.3
109.6
172.6
2.3
4.8
Hospital
3
3
431.0
143.7
4723.3
98.0
Total
19
19,
520
27.4
899.8
118.2
Totals
Residential -Single Family
Other
Total
1403
1772
7779.741787
4,4
144.3
17681
388
3053.142857
16276.79508
5.3
175.3
3699.3
1791
4825.142857
24056.53687
5.0
163.9
5467,4
SVW&SID Historical Water Use by Customer Category (2016, including commited but not yet connected)
Residential -Single Family
Connections
Units
Quantity
(Peak Month)
- kgals
Peak Month Indoor
Water consumption
kgals
Peak Month Indoor
Water consumption
gpd
ERUs
Residential
1851
1851
8144.4
4.4
144.7
1851.0
Trailer Court
8
112.0
493
4.4
144.7
112.0
Total
1859
, 1963.0
8637.4
4.4
144.7
1963.0
Residential - Multifamily
All
16
135
330
2.4
80.4
75.0
Total
16
135
330
2.4
80.4
75.0
Overnight Accommodations
All
6
135.5
497
3.7
120.5
113.0
Total
6
, 135.5
497
3.7
120.5
113.0
Commercial/Retail
All
60
60
414.25
6.9
227.0
94.1
Total
60
60
414.25
6.9
225.0
94.1
Office
All
17
17
170.4
10.0
329.5
38.7
Total
17
17
170.4
10.0
329.5
38.7
Restaurant
All
3
3
83
27.7
909.6
18.9
Total
3
3
83
27.7
909.6
18.9
Schools
All
2
2
95
47.5
1561.6
21.6
Total
2
2
95
47.5
1561.6
21.6
Gas Station/Convenience Store
All
3
3
410
136.7
4493.2
93.2
Total
3
3
410
136.7
4493.2
93.2
RV/Campground
All
7
430
938
2.2
71.7
213.2
Total
7
430
938
2.2
71.7
213.2
Other
All
25
25
334.6
13.4
440.0
76.0
Total
25
25
334.6
13.4
440.0
76.0
Totals
Residential - Single Family
Other
Total Connections
1859
1963.045455
8637.4
4.4
144.7
1963.0
139
810.5454545
3272.25
4.0
132.7
743.7
1998
2773.590909
11909.65
4.3
141.2
2706.7
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