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Home My Public Portal AboutSynopsisSynopsis of Fourth and Fifth Amendments to the Cooperative Agreement Fourth Amendment adopted July 1984, supercedes any conflicting language or agreements contained in the original Cooperative Agreement and the three previously approved amendments. Revised by Fifth Amendment, March 1987. Fourth Amendment to the Cooperative Agreement Section 19: DURATION OF AGREEMENT: "...shall remain in full force and effect until at least the 31" 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: establishes joint and equal control over, and responsibility for, the operation and maintenance of the sewer treatment facilities, and agree to share equally certain fixed costs of operating it, pursuant to the Joint Powers Act (Idaho Code sections 67- 2326 through 67-2333), because each entity "has made a very substantial contribution to construction of the [shared] treatment facility..." The agreement relates only to the existing facility and will not relate to any facilities which are added by expansion of the plant. Section 20.1: APPOINTMENT OF JOINT POWERS BOARD: establishes and authorizes a joint operating board to administer and be responsible for operation and maintenance of the treatment facility. The board shall consist of one representative designated by the Mayor and Council of the City of McCall and one representative designated by the Board of Directors of the Payette Lakes Water and Sewer District, together with a third person to be selected by the agreement of those two designated representatives. Clarifies conflict resolution arbitration, terms of representatives, establishment and maintenance of budget. Section 21: OWNERSHIP OF TREATMENT FACILITY, COLLECTION SYSTEM AND RELA 1'ED PERSONAL PROPERTY: clarifies ownership by each entity of their separate collection systems, and vests personal and real property pertaining to the existing treatment plant and future asset acquisitions. Provides for funding of any capital expenditure to be allocated 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: capital outlay incurred in either entity's collection system shall be entirely that entity's responsibility, and any expansion of the treatment facility shall be entirely the responsibility of the parry requiring such additional capacity unless the parties agree to allocate that capacity on some mutually acceptable basis. Section 22: FLOW CAPACITY: This section amended by the Fifth Amendment. Section 22-1: PLAN: pertains to inflow and infiltration in the City's collection system and an agreement by the City to minimize excessive I & I and to develop additional effective treatment capacity so as not to encroach on the District's allocated capacity. Section 22-2: ALLOCATION OF ADDITIONAL "EFFECTIVE CAPACITY" AS A RESULT OF CHANGES IN STATE AND/OR FEDERAL DISCHARGE PERMITS: Relies on the City to obtain modified discharge permits from state and federal agencies. Section 23: MEASURING DEVICES: provides for measuring devices to be installed by each -1- entity to accurately measure the effluent delivered to the treatment facility. Section 24: INTERIM FLOW ALLOCATION - RATIONING: Restricts hook-ups by the City from 1984-1988. Assigns a peak daily flow of 550 gpd per household as an equivalent residential hook-up. Equivalent hook-ups for various classes of commercial and industrial units are then determined by multiplying the 550 gpd per unit base figure by the multiplication factor used by the Central District Health Department. Provides for modification of this figure, by written agreement, if and when monitoring of water inflows and effluent outflows demonstrates the 550 gpd assumption to be inaccurate. Section 25: PERIODIC ADJUSTMENTS: 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 flow experience, and agree to mutually negotiate to adjust their respective allocations. (Fifth Amendment) Section 26: DENSITY STANDARDS FOR ANNEXED LANDS: The City agrees to incorporate existing District densities and hook-up allocations into its planning and zoning process by ordinance; and in the event that any property within District boundaries "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 agree to maintain and operate the treatment facility in accordance with the Operation and Maintenance Manual for the facility. Section 28: OPERATION AND MAINTENANCE OF COLLECTION SYSTEMS AND ALLIED FACILITIES AND COLLECTION OF USER FEES: Contrary to the provisions of the Cooperative Agreement and its first three amendments, the City and District will maintain and operate their respective collection systems and collect their own hook-up and user fees; each entity being solely responsible for the operation and maintenance of its own sewage collection system. "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: COST OF OPERATION OF TREATMENT FACILITY: Costs will be shared as follows: 1. The District and City shall share the cost of operating the treatment plant on a pro rata basis (originally by volume of sewage produced, replaced by the Fifth Amendment), Billings to the District shall be billed and paid on a monthly basis. 2. The City 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 operation, maintenance or repair of its collection system. 3. 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 48 hours written notice. Section 30: TERMINATION: Provides for disbursement of assets if and when the agreement is -2- terminated, either upon expiration of the agreed term, or as otherwise mutually agreed. Section 31: DEFAULT; and Section 32: ATTORNEY FEES AND COSTS: Provides for arbitration for resolution if either party is in, or believed to be in, default under the terms of this agreement; and in the event of a dispute for interpretation or enforcement, the prevailing party shall be entitled to reasonable attorney fees and costs. Section 33: MERGER: "Save as expressly provided herein, this agreement shall supercede all conflicting prior agreements between the parties." Section 34: GOVERNING LAW: Provides for complying with Federal/State grant conditions, mechanism for putting the agreement into force. Fifth Amendment to the Cooperative Agreement Provides for the sale of a portion of the District's allocated capacity at the treatment facility, which proved to be greater than its actual needs, to the City, who is willing to buy that portion of the capacity. Such a sale of capacity necessitate certain amendments to the Fourth Amendment. Section 1: SALE OF TREATMENT CAPACITY: Provides for the sale by the District of 364,000 gallons per day of its allocated capacity to the City. This sale results in a modified allocation of the treatment facility's capacity as follows: The District - 33% or 600,000 gpd; the City - 67% or 1,226,000 gpd. Section 2: PURCHASE PRICE: Sets the purchase price for 364,000 gpd at $98,280.00. Sets up a payment schedule including interest on the principal at the underlying bond rate being serviced by the District. Section 3: COSTS OF OPERATION OF TREATMENT FACILITY: Commencing with the City's 1988 fiscal year, costs of operating the treatment facility will be: District 1/3; City 2/3. Section 4: FUTURE ADJUSTMENTS TO OPERATING COST ALLOCATIONS: Provides for allocating annual operating costs on a hook-up basis. Sets up base year equivalent hookups for each entity. Provides for updating allocations annually by July 1 of each year. Equivalent user hookups shall be counted rather than physical hookups. Equivalent user hookup defined as a single family residence (generating 550 gallon per day) as a single equivalent unit hookup; the flow factors used by the Central District Health Department shall be scaled using this base to determine equivalent unit hookups for various other classes of users, e.g., multi- family, commercial, and industrial. Provides that independent of the foregoing allocation, the 1/3 - 2/3 treatment capacity allocation shall remain fixed, unless and until further modifications are agreed to by the parties. Section 5: MERGER: "Save and except as set forth herein, the provisions of the Fourth and earlier Amendments to the Cooperative Agreement shall remain in full force and effect." -3-