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HomeMy Public PortalAboutFourth Amendment 7-24-1984FOURTH AMENDMENT TO COOPERATIVE AGREEMENT THIS FOURTH AMENDMENT TO COOPERATIVE AGREEMENT made and entered into this ,...%,' day of July, 1984, by and between the CITY OF McCALL, a municipal corporation located in Valley County, Idaho, hereinafter referred to as the "City", and the PAYETTE LAKES WATER AND SEWER DISTRICT., Valley County, Idaho, a sewer district organized and existing under and by virtue of Chapter 12, Title 42, Idaho Code; and lying adjacent and continguous to the geographical boundaries of the City of McCall, Valley County, Idaho, hereinafter referred to as the "District"; W ITNESSET H: WHEREAS, the parties hereto made and entered into a Cooperative Agreement dated December 15, 1977,,hereinafter refer- red to as said Agreement; and WHEREAS, the parties hereto made and entered into a First Amendment to Cooperative Agreement dated December 4, 1978, hereinafter referred to as said First Amendment; and WHEREAS, the parties hereto made and entered into a Second Amendment to Cooperative Agreement dated June 4, 1979, hereinafter referred to as said Second Amendment; and WHEREAS, the parties hereto made and entered into a Third Amendment to Cooperative Agreement dated August 6, 1979, hereinafter referred to as said Third Amendment; and WHEREAS, a dispute has arisen as between the City and the District as to their respective rights and liabilities under, such Agreement, in particular the flow allocations set forth in the First Amendment and the consequences of any annexation by the Fourth Amendment to Cooperative Agreement -1-  .000;City of lands within the District as to the District's density limitation thereto, which dispute has engendered a certain pending lawsuit filed as Case No. 2483 in the District Court of the Fourth Judicial District, in and for the County of Valley; and WHEREAS, the parties are mutually desirous of resolving the issues raised by such suit without the need for continued litigation; and WHEREAS, the parties, in spite of their past dispute are .still desirous of mutually implementing the goals and objectives reflected by the series of agreements commencing with the December 15, 1977 document captioned "Cooperative Agreement,��in a manner consonant with their duties and responsibilities to their respec- tive constituencies and the cognizant regulatory and funding agen- cies involved; NOW, THEREFORE, in consideration of the foregoing, the Cooperative Agreement and amendments thereto, and in consideration of the additional covenants and agreements hereinafter set forth, the parties do hereby further amend said Agreement by the addition of new sections thereto to read as hereafter set forth.. These new sections and the agreements contained therein are intended to supercede any conflicting language or agreements contained in the original Cooperative Agreement and the three previously approved amendments thereto and to the extent that there is any conflict between the language contained herein and the language of the said Cooperative Agreement and the three amendments thereto, the language of this Amendment shall supersede and determine the agreements between the parties. SECTION 19: DURATION OF COOPERATIVE AGREEMENT: Despite the substantial changes this Amendment makes in the Cooperative Fourth Amendment to Cooperative Agreement -2- Agreement, as amended, heretofore entered into by the parties, City and District wish to reaffirm the long term nature of the relation- ship between them and covenant and agree the Cooperative Agreement, as amended through this Fourth Amendment, shall remain in full force and effect until at least the 31st day of December, 2027, and for so long thereafter as the present treatment facility, as it may be maintained and upgraded by the parties, shall remain operable. SECTION 20: JOINT OPERATION OF TREATMENT FACILITY AND ADOPTION OF A JOINT POWERS AGREEMENT: In order to better facili- tate the long term administration and operation of these sewer treatment facilities, the parties have agreed to enter into a written JOINT POWERS AGREEMENT, pursuant to Section 67-2326 through Section 67-2333, Idaho Code, (Joint Powers Act)., by which the parties, as public entities, are authorized to enter into cooper- ative arrangements to their mutual advantage and thereby provide services and facilities and perform functions in a manner that will best accord with the geographic, economic, population, and other factors influencing the needs and development of their re- spective constituents. The parties further agree that because each has made a very substantial contribution to construction of the treatment facility shared by them, and because each expects to utilize the facility as its primary source of sewage treatment for many years, it is in the best interest of both of the parties that they have joint and equal control over, and responsibility for, the operation and maintenance of that facility and share equally in the fixed costs of operating it. They therefore hereby agree that each party shall have joint and equal control and responsibility for operation of the treatment facility and agree to share equally certain fixed costs of operating the treatment facility as those Fourth Amendment to Cooperative Agreement -3- .• ...$:.rP:a.nrra•.r. c.:e.y.gr•v ;?•nM.q,•+.»..........., .,.. ... .-.. n... ..P - " costs are identified by the board hereinafter established. This agreement relates only to the existing facility and will not relate to any facilities which are added by expansion of the plant. Any new facilities constructed by either party which do not interfere with the other party's use of, or share of, the allocation of the present treatment facility shall be the sole property and responsi- bility of that party and the other party shall have no say or con- trol over the operation of that newly constructed facility unless the parties provide otherwise by written agreement. Each party agrees that it will not interfere with or otherwise impede the other party's plans for expansion of the capa- city of the treatment facility, so long as such expansion will not interfere with that other party's use of the plant or reduce its allocated share of the existing facility's capacity.. The parties agree that the joint board hereinafter provided for shall have the authority to determine whether any proposed expansion poses a threat to either party's use of the existing facility or share in its capacity. SECTION 20.1: APPOINTMENT OF JOINT POWERS BOARD: In order to implement the policy directives herein set forth and to conform to the Joint Powers Act, the parties hereby agree to estab- lish and authorize a joint operating board to administer and be responsible for operation and maintenance of the treatment facility. Each party agrees to support the said board and depend upon and defer" to its judgements about operation and maintenance of the treatment facility. That board shall consist of one representative designated by the Mayor and Council of the City.of McCall and one representa- tive designated by the Board of Directors of the Payette Lakes Water and Sewer District, together with a third person to be selec- ted by the agreement of those two designated representatives. The Fourth Amendment to Cooperative Agreement -4- parties agree to share the reasonable cost of procuring the services of a third party to serve on that board. In the event those two designated representatives are unable to agree as to the selection of a third member of the board, either at the inception of this agreement or at any future date in the event the third board member should resign, die, be disabled, or complete his term of office, the parties agree to resolve their dispute pursuant to binding arbitration. In such event, the rules of the American Arbitration Association shall apply and an arbitra- tor shall be selected from the Idaho panel maintained by the AAA pursuant to its rules and procedures. Each party will then submit a list of three names to that person, with a statement of the qual- ifications of each, and that arbitrator will then name the third person to serve on the said board. The designated City and Sewer District representatives shall serve at the will of their respective appointing authorities. .The third board member shall serve for a minimum term of one (1) year, and may not be terminated by either party without the concur- rence of the other party. That third board member may be appointed to an unlimited number of successive terms if the two designated board members so agree. The parties agree to establish and maintain appropriate_ hlidoet leyels to carry out the Joint Powers Agreement. Awe/l�r✓jd�h,,"j Ownership of the facilities being operated pursuant t `;,› this Joint Powers Agreement is as set forth in Section 21.a4ac .e,. J� Disposition of property which is the subject of this �� :Joint Powers Agreement shall be as provided By Section 30 of this Agreement. It is contemplated that this agreement contains only the elements essential to compliance with the Joint Powers Act and that the parties will enter into a more detailed joint powers Fourth Amendment to Cooperative Agreement -5- agreement for the operation of the treatment facility in the near future. However, this agreement shall remain in full effect and force until such expanded joint powers agreement is adopted. SECTION 21: OWNERSHIP OF TREATMENT FACILITY, COLLECTION SYSTEM AND RELATED PERSONAL PROPERTY: The parties agree that title to personal and real property presently used by each party shall be vested as follows: 1. City presently owns the real property upon which the shared treatment facility is located and the parties agree that City shall retain ownership of that real property and may make any use of said property which does not interfere with the use of the property as a sewage treatment facility as it is presently con- stituted or may hereafter be enlarged or modified..b 7r17' * apm."It o f t he 2. The parties understand and acknowledge that by virtue Of the Cooperative Agreement which this Amendment modifies, the District has attempted to convey its entire interest in the treat- , ment facility to the City, but both parties now feel it is in the best interest of each of the parties to modify the Cooperative Agreement to provide that title to all of the permanent improve- ments constructed at the treatment facility site (specifically including, but not limited to, airpiping and sand filters) through the date of this agreement shall be, and hereafter are, the property of the City, while all of the fixtures, tools, equipment and other personal property located or used at the treatment plant and pur- chased with District•funds shall be, and hereafter are, the pro- perty of the District. 3. With respect to the District's collection system, all system components, easements and rights -of -way now held by the District, the parties agree the same are and shall be vested in the District, together with any similar facilities hereafter construc- Fourth Amendment to Cooperative Agreement -6- ted or acquired by District and the operation and disposition thereof shall be the District's sole responsibility and within the exercise of its sole authority. 4. With respect to the City's collection system, all system components, easements and rights -of -way now held by the City, the parties agree the same are and shall be vested in the City, together with any similar facilities hereafter constructed or acquired by City and the operation and disposition thereof shall be.the City's sole responsibility and within the exercise of its sole authority. 5. Unless otherwise agreed, future asset acquisitions which constitute a usual or intergral part of either collection "system shall vest solely in either the District or City as a func- tion of whichcollection system is involved; all permanent improve- . ments hereafter constructed' at or as part of the treatment facility shall vest in City, except and unless the parties agree differently. With respect to all personal property and fixtures hereafter pur- chased for use at the treatment site, title shall vest in the party purchasing and supplying such property. Where such personal property is purchased by utilizing jointly supplied funds, title shall vest with the City and District in co -tenancy in proportion to the funds supplied by each. In the event the funds are alloca- ted from other state, federal or local agencies, that proportion so allocated shall be credited to whichever party received the • funds. This provision is solely for the purpose of proportioning ownership rights. 6. The funding of any capital expenditure shall be al- located on either a metered flow basis, hook-up, patron count, or other basis which best matches the nature of the benefits to be provided, EXCEPT that any capital outlay incurred in the mainten- ance, repair, renovation or expansion of either entity's collec- Fourth Amendment to Cooperative Agreement -7- in,�•,�•„ � . rr,..:t •t:'• +'. '. +,.:01,01. .}:'i-- •..yz .,tT,•nr �..T«;tr.t.�r,»w�.c..+•�•• ..r«rrT•;R�.y�.M.. .r tion system shall be entirely that entity's responsibility, and any capital expenditures associated with expansion of the treatment facility shall be entirely the responsibility of the party requir- ing such additional capacity unless the parties agree to allocate that capacity on some mutually acceptable basis, in which case the parties shall share in capital expenditures involved in such ex- pansion in proportion to their respective allocation therein. SECTION 22: FLOW ALLOCATIONS: Both parties are in agreementthat the allocation to the existing lagoon capacity is as set forth in Exhibit "A" to the First Amendment to the original Cooperative Agreement, being that reproduced below: AVERAGE GPD (000) YEAR DISTRICT CITY TOTAL 1978 1988 1998 861 •(55%) 965 (53%) 1,035 (52%). 703 (45%) 861 (47%) 965 (48%) 1,564 1,826 2,000 The parties hereby reaffirm their commitment to that percentage allocation, recognizing that the 1978 projections' were based on an expectation that the treatment facility and the District's collec- tion system would be completed by that date. The 1988 capacity of 1,826,000 gallons per day represents the present design capacity of the treatment facility when all four sand filters are opera- tional. The 1998 figure of 2,000,000 gallons per day is a projec- tion based on design capacity when a fifth sand filter has been added. The parties agree that for all practical purposes the 1978 projections are meaningless and agree that the, above allocation of the present capacity, designed for 1,826,000 gallons per day, is 53% to District and 47% to City of the actual treatment capacity and that these percentages represent'the parties' respective shares of the treatment facility's present actual capacity. Fourth Amendment to Cooperative Agreement -8- ...nw!roa7�*w�Mrr.iyr,-r;•w,...pw,"Tnner�•r'.�5,. ,!" • r! t"1R'i� '`. i • It is understood and agreed that the actual capacity of the treatment plant may be either more or less than design capacity during any month of the year, depending on such variables as sus- pended solids in the influent, inflow and infiltration, temperature and precipitation, and the parties agree that it is imperative that the actual capacity of the treatment facility be determined as accurately and quickly as reasonably possible. The parties there- fore hereby direct the joint board to be named as hereinabove pro- vided to select an engineer._.or other techniba resource person to evaluateactualflow experience to date and analyz___e anticipated future flow and•provide the best data available as to the actual capacity of the facility. Such evaluation shall be performed on an ongoing basis as the board believes it may be necessary. The par- ties agree to share equally the costs of such evaluation and agree to abide by the determination's made by such person. When actual capacity of the plant has been confirmed with what the board believes is reasonable accuracy, that capacity, rather than design capacity, shall become the basis for calculating the parties' respective shares of the treatment plant's capacity. The parties reaffirm the percentage allocations set out hereinabove (53% District - 47% City before a fifth sand filter is added and 52%District - 48% City thereafter) and agree that each party's share of actual capacity shall be allocated on the same basis. SECTION.22.1: PLAN: It is presently clear that City is experiencing inflow and infiltration into its collection system substantially in excess of what was contemplated by the original facilities plan. In order to achieve the agreed upon allocations of the facility's present capacity, the City agrees to continue. and expand its present program for minimization of "excessive" inflow and infiltration in its present collection system. Further, Fourth Amendment to Cooperative Agreement -9- �� '. ��71'1 •, .. �i y';',4'nr�Ai�xi:4'�: ��'�J. u::yN",. i City shall develop an express plan for increasing the effective capacity of the treatment facility in order to bring on line no later than December 31, 1988, an additional effective treatment sufficient to insure that the District has available its full allocation of the treatment facility's present capacity. It is presently estimated that the City will be required to develop additional effective treatment capacity of approximately 750,000 gallons per day during the worst case spring run-off period extend- ing from approximately February 1st to May 31st, but the parties agree to share the expense of determining more precisely the short- fall to be expected.for this period and utilize such data to estab- lish the City's goal. and monitor their progress towards it. such determination shall be commenced forthwith upon execution of this agreement Each party shall designate an agent who, collectively, shall select a third party to. perform this work. Actual implemen- tion of this plan may be delayed by mutual agreement of the parties -(by written supplement to this agreement) in the event City is able to reduce its inflow and infiltration to the point that its peak flows do not exceed 47% of the treatment facility's present actual capacity. City agrees to implement such plan immediately .and to pursue it in good faith at its.sole cost until it has expan- ded the capacity of the treatment facilityyto the point that it does not encroach on District's allocation of the treatment facil- ity's capacity during periods of peak flow. SECTION 22.2: ALLOCATION.OF ADDITIONAL "EFFECTIVE CAPA- CITY" AS A RESULT OF CHANGES IN STATE AND/OR FEDERAL DISCHARGE PERMITS: The parties understand that because of the climatic condi- tions which prevail in this area, the treatment facility may be, able to effectively treat more influent during some months than during other months. The parties also understand that the discharge Fourth Amendment to Cooperative Agreement -10- '..�1••4N, 311f14t,ri'.' 44N ' i44'Y.'k'rrf3i.:viyyi:�15( 'il'.r,!L.`,'�1 • • ,.7 i .��, ; i p. . ;.,t,.:•7;:.1;tj1`P :kj<•{i•i'i.3•:ii ;:i .(vTli.,,,ti,.: F; e4t.Yi(:, permits governing operation of the treatment facility may not take those seasonal variations into account and that it may be possible to have those discharge permits revised, amended or modified to take such seasonal variations into account in such a way that the treatment facility can process and discharge greater quantities of effluent during those months when its influent flows are greatest, but most dilute, while decreasing its permissable discharge levels during those months when total influents are significantly less voluminous. m00% „a-n o4y,,,u,. 7ur The parties agree that if the City can e the appropriate state and federal agencies to modify the applicable discharge permits to allow increased discharges during those months when influent flow is greatest, any additional "effective capacity" available during those months (in excess of the 1,826,000 gpd design capacity now nominally available and the 2,000,000 gpd nominal capacity to be available after a fifth sand filter has been con- structed) because of changes in those discharge permits will be allocated as follows: 1985: 100% of such additional effective capacity to City, 0% to Sewer District; 1986: 87% to City, 13% to .District; 1987: 74% to City, 26% to District; 1988: 61% to City, 39% to District; 1989 and thereafter: 47% to City, 53% to District, except that after a fifth sand filter is added, the respective allo- cations shall be 52% to District and 48% to City., This allocation recognizes that the City has an immediate need for additional capacity, while the Sewer District's need for additional capacity will mature over the next three to four years after most of its patrons have hooked up and the District's collection systems begin • to age. This allocation also recognizes City's committment to develop additional capacity to handle all of its flows in excess of those contemplated by the original cooperative agreement and its first three amendments thereto. Fourth Amendment to Cooperative Agreement -11- i SECTION 23: MEASURING DEVICES: In order to correctly determine the amount of sewage effluent generated from within the District and the City, respectively, each party hereby specifically agrees to immediately furnish and install, at its own expense, measuring devices which will accurately measure the effluent de- livered to the treatment facility by each party, and to keep the said measuring devices accurately calibrated at all times, pursuant to the manufacturer's recommendations. City and District also agree that either party will have continuous reasonable access to the measuring devices and the recorded metering data, and that either party may at any time and at its own expense have the other party's measuring devices calibrated. If any such device ceases to function properly the party responsible f.or that device shall .immediately have it repaired or replaced at its own expense. In recognitiorr of'the short term limited treatment capa- bilities of the treatment facility as it now exists, it is agreed that actual flows shall be monitered daily with the daily average being the basic unit of measurement. This figure shall be compared monthly with the treatment system's total capacity as determined by the procedures set out in paragraph 22.1 in order to determine whether the goals the City is required to meet should be modified. For example, if the City were to develop a land appli- cation program which increased its effective treatment capacity an additional 600,000 gpd each and every month with no increase in flow contributions during the interim, this level of developed capacity would totally inure to the City's benefit and would result in an appropriate adjustment to the City's December 31, 1988 target goal. Similarly, if the present discharge permit for the treat- ment facility were modified to effectively increase the treatment facility's capacity over design flow levels during any particular • Fourth Amendment to Cooperative Agreement -12- lc " .n" .t<" " :'r*lh��rMr!IrnxnM" Ru!r" r...," KnyW.!ram:" MA��'71rM*T' i it ry._ iVP! Au+yY1'i��Y,4t:'iA!":R��.{7W'Lv��:i��.rf ^... P.r;" -!'.1?ai(bi!"��n! . .month, the City's 48% share of that effective increased capacity would reduce its 1988 target goal by the number of gallons gained thereby. SECTION 24: INTERIM FLOW ALLOCATIONS - RATIONING: Until such time as the City reduces its flows_ to the treatment facility to its 47% share of the facility's .capacity or increases the capacity of the'treatment facility so that the District is left with its full 53% share of the capacity of the treatment facility (52% after a fifth sand filter is added), City agrees that it will restrict hook-ups to its sewer system to numbers or levels that will guarantee that it will increase its contributions to influent flow to peak daily levels by no more than the following quantities during each of the next five years: 1984: 16,500 gpd ,./" ' 1985: 17,050 gpd g / sc00.t- c; " ''. 1986: 17,600 gpd. " 1987: 17,600 gpd v; " 1988: 18,150 gpd _iT - These figures are based upon a design assumption, and agreement by the parties, that each residential hook-up will con- tribute a peak daily load of 550 gpd to the City's flow. Thus, until and unless actual flow figures indicate differently, to the mutual satisfaction of the parties, they will assume each residen- tial unit will contribute a peak daily flow of 550 gpd to the City's flow and that the City may not grant more than the equiva- lent number of residential hook-ups during each year (until actual flow experience as hereinabove set out allows upward or downward adjustment of those numbers), i.e., 29 hook-ups for 16,500 gpd, 32 hook-ups for 18,150 gpd. For purposes of determining how to treat hook-ups other than single family residential units, the parties agree to use the 550 gpd per unit figure as an equivalent hook-up base and multiply that number by the mulitplication factor used by Fourth Amendment to Cooperative Agreement -13- :��!''I}'r;kt��!" rl..��,i,.��{��p.4��.a,{,ryiif!i>7ilfi" flJi!U,��'�B r.%"dj!rLwt: " X'+Y ;dl..ry;f" ,... . __ _����....__._.._.._. _ ' �� ��!, .." �� i "'" ����. , *a�� 4"i.. .��}H����J��rlel`tigt.. ri:;a ������: ,��,U:: ht'':i; ����.4,�� ��,r,,, " " the Central District Health Department in determining anticipated flow projections of various classes of commercial and industrial units. Thus, connection of a single commerical unit predicted to produce a peak daily flow of 16,500 gpd would be treated as equi- valent of 29 single family residential units and in the event the City were to allow such a hook-up it would assume such predicted flows until one year of metering experience on that hook-up showed peak daily flows either greater than or lessthan those antici- pated; in which event the number of gallons available in subsequent years would be adjusted upward or downward accordingly to reflect that actual flow experience. In the event the City's planned monitoring of actual water inflows and actual effluent outflows from new construction (or new hook-ups) demonstrates to the mutual satisfaction of the parties that the 550 gpd design assumption is inaccurate, the parties shall, by written agreement, modify this figure to the corresponding figure developed from actual measurements. This would result in a proportionate adjustment in the number of equi- valent unit hook-ups corresponding to the given flow volumes for each year of the plan. All of the flow meters installed within the City and/or District shall be available to inspection by the other party at all times and all flow data gathered from those meters by either party shall be made available to the other party for inspection and copying at all reasonable times. In the event City does not use its ,entire projected allo- cation of additional flow (or its actual allocation after sufficient metering experience to determine•that flow is..available) during a given year, it may carry any unused portion of that allocation over to future calendar years, provided that the allocation of gallonage for future years may always be subject to adjustment Fourth Amendment to Cooperative Agreement -14- ii 1 IrWSM}(•".brc' •H.�� ..,.,� ..c, h:' �: t A , b 4 ':�, y��� ,. 5'. ' i." j {;'. i �'Y r.4• F�� d.+.•S � "i° :} rr, r 1CSF : IA ih`i.:��;%G;iP4'0, r4� '��� +1'i i 1 upward or downward on the basis of actual metered flow experience. For example, if a commercial hook-up producing peak daily flows of 16,000 gpd went on line in 2985, but was out of business a year later, that capacity would be freed up for future years, and, con- versely, if a unit projected to produce 16,000 gpd when it went on line in 1984 actually began producing 32,000 gpd in 1986, the City's 1986 allocation of 17,600 gpd would be reduced accordingly by the increased flow. SECTION.25: PERIODIC ADJUSTMENTS: Both parties agree that it is desirable to minimize the expense of developing addi- tional capacity and agree to monitor actual flows on at least an annual basis'with the understanding that if actual flows indicate higher or lower future flows than presently anticipated, the par- ties will mutually negotiate, in good faith, to adjust their re- spective allocations to reflect adjusted anticipated future demands. By this provision the parties intend to identify and develop over the five year interim flow allocation period a more refined projection of their mutual long term needs based on actual experience with patron demand and lagoon treatment capacity so as to better utilize the resources presently committed to their joint endeavors and so as to match the need to commit additional public funds over the life of the project to the minimum necessary to accomplish the project's service goals and projections. SECTION 26: DENSITY STANDARDS FOR ANNEXED LANDS: The parties acknowledge that the District has developed a "density map" and density standards which determine the number of hook-ups which may be granted to various parcels of real property presently located within the District. City agrees to incorporate those densities into its planning and zoning process by ordinance, to be adopted as 1 quickly as the law will provide after the execution of this agree - Fourth Amendment to Cooperative Agreement -15- L ment, and City further agrees that such density standards shall remain in effect during the entire term of this agreement. The parties also agree that if any property presently within the Dis- trict is annexed into the City during the term of this agreement, it will remain part of the District, will be billed and taxed for sewer services by the District, will have its sewer collection system maintained by the District, and otherwise remain within the District. SECTION 27': OPERATION AND MAINTENANCE OF TREATMENT FACILITY: District and City specifically agree to maintain and operate the treatment facility in accordance with the Operation ` and Maintenance Manual for the facility as the same now reads or may hereafter be amended or supplemented. SECTION 28: OPERATION AND MAINTENANCE OF COLLECTION SYSTEMS AND ALLIED FACILITIES AND COLLECTION OF USER FEES: Con- trary to the agreement set forth in the original Cooperative Agree- ment end its first three amendments, the parties now agree that it . is in the best interest of both parties foz` City and District to maintain and operate their respective collection systems and for ; each to collect its own hook-up and user fees, and the parties therefore hereby covenant and agree that each entity shall be solely responsible for the operation and maintenance of its own sewage collection system and'for the collection of hook-up and user fees from its own patrons. This does not preclude some future mutually acceptable contract between the parties regarding operation and maintenance of collection systems, or collection of user fees by one entity for the other. SECTION 29: COSTS OF OPERATION OF TREATMENT FACILITY: 'The parties agree to share the cost of operating the treatment facility according to the following formula, except as hereinabove provided. Fourth Amendment to Cooperative Agreement -16- shall be disbursed to the entity holding title. Title to-t-kis- 1. The District and City shall share the cost of opera- ting the treatment facility on a pro rata basis; each entity's share of that cost shall be based upon the volume of sewage produced by its users compared to the total volume of sewage treated and measured by the measuring devices hereupon agreed, upon. Billings to the District for its share of those costs shall be billed and paid on a monthly basis. 2. As such records are essential to the accurate com- putation of the charges to be paid by the District as provided above, City hereby agrees to keep accurate records of the volume of sewage treated and of all expenses, i.e., labor, operation, repair and maintenance costs, incurred at the sewage treatment plant, taking special care not to include any costs incurred in the oper- ation, maintenance or repair of its collection system. 3. City further agrees that the records agreed to in this section shall be available for examination or audit by the District's staff or its financial advisors upon not less than forty- eight (48) hours' notice. District agrees that such notice shall be in writing by letter signed by the District's coordinator or the Chairman of the District Board of Directors. SECTION 30: TERMINATION: Upon termination of this agreement upon the expiration of the agreed term, or extensions thereof, or as otherwise mutually agreed; all then subsisting assets eiecto) *raa*me'l* ante any personal property owned jointly by the parties shall remain in joint ownership until and unless one party agrees to sell its interest to the other. SECTION 31: DEFAULT: In the event either party is in, or believed to be in, default under the terms of this agreement, . the alleged default shall be referred for resolution by arbitration Fourth Amendment to Cooperative Agreement -17- " " in the manner provided by Section 7-901, et. seq., Idaho Code, as amended, except that an injunction may issue to preserve the status quo during any such arbitration. SECTION 32: ATTORNEY FEES AND COSTS: In the event dispute arise between the parties hereto for interpretation or enforcement of this agreement, the prevailing party shall be en- titled to reasonable attorney fees and costs. SECTION 33: MERGER: Save as expressly provided herein, this agreement shall supercede all conflicting prior agreement$ between the parti.es. SECTION 34.: GOVERNING LAW: To the extent the present agreement either expressly, or by omission, is at variance with the conditions of the original Federal/State grants funding the joint District/City sewer project, the parties agree_ to cooperate in good faith in seeking approval of such. variances. Further, and as pro- vided by Section 67-2330, Idaho Code, as a condition precedent to the entry into force of this agreement, it shall be submitted to the Idaho Department of Health and Welfare for review and approval. Appropriate prior action by the respective governing boards of each party by ordinance, resolution, or otherwise as provided by law, shall also be necessary before this agreement shall enter into force. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals in execution of this Agreement, this day of July, 1984, to be effective forthwith. CITY OF McCALL ATTEST By 62444 c77r,e_A-citzto By 44,AtL' Clyde Aiicher -.Mayor Clerk Fourth Amendment to Cooperative Agreement -18- LAKES WATL.. ,',fr,",DISTRICT, VALLEY COUNTY, IDAHO By Peter K. Wilson - Chairman Secretary STATE OF IDAHO )ss. County of Valley ova, 1. ,111'Li'•n J On this 1-1-1.T day of July, 1984, before me, a Notary Public in and for the State of Idaho, personally appeared CLYDE ARCHER an 4-14N.R3m0 TE�I.LSVZ , known to me to be the Mayor , respectively, of the City of McCall, and acknow- ledged to me that they executed the foregoing instrument on behalf of the said City of McCall. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. STATE OF IDAHO County of Valley Notary Public for Idaho Residing at fZr-G.C( ) )ss. On this (.14iet, day of July, 1984, before me, a Notary Public in and for the State of Idaho, personally appeared PETER K. WILSON and,r.e-4,,.,J ;37 , known to me to be the Chair- man and Secretary, respec iv ly, of the Payette Lakes Water and Sewer District, and acknowledged to me that they executed the foregoing instrument on behalf of the said Payette Lakes Water and Sewer District. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. (Z?. v.J Wit,u�'J j/Notary Public for Idaho Residing at ,w)P n,ti(7 Fourth Amendment to Cooperative Agreement -29- Cooperative Agreement -.-