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HomeMy WebLinkAbout1989-02-28 ResolutionNa _ 89-38 Whereas, Dan 4aung, while walking to warn, did, an the early morning of December 22, 1988. detect and sumon aid to a fire at 630 bauth Capitol Street, and iuh e r e a s , Dan young, bg his quick and heroic acts of responsible citizenship was instrumental in sauing a person's life, and whereas , an this 28th bag of February, 1989, the City Council wishes to acknowledge and commend Dan 4aung far his act, Naw , t h e r¢ t a re , be it resolved hg the Citg Council of Iowa City, Iowa: I. Chat the City Council of Iowa City, Iowa, hereby III commends Dan 4aung for his heroic and meritorious actian; 2. that the City Council extends the gratitude of III the City to the said Dan gating for his act of citizenship and concern for the welfare of others. :iverj 1b13 Ambrisco III and seconded bg Horowitz that the Resolution he adapted - h I n -e ,0 CIC CLERK A4OR i P a s s e b and a p p r o v e x) this 29th daq of February 1989. 335 RESOLUTION NO. 89-39 RESOLUTION ADOPTING SUPPLEMENT NLMBER 39 TO THE CODE OF ORDINANCES OF THE CITY OF IOWA CITY, IOWA WHEREAS, the Municipal Code Corporation has prepared the 39th supple- ment to the Code of Ordinances of the City of Iowa City, �—and, WHEREAS, it is deemed appropriate to adopt supplement number 39 by resolution as a part of the said Code of Ordinances, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That supplement number 39 to the Code of Ordinances of the City of Iowa City, Iowa, attacc erto this Resolution as Exhibit A, and by this reference made a part hereof, is hereby officially adopted as a part of the said Code of Ordinances. 2. That the Mayor is authorized to sift, and the City Clerk to attest, this Resolution. It was moved by Ambrisco and seconded by Balmer the Resolution be a opte , an upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Balmer X Courtney X Horowitz X Kubby X Larson X McDonald Passed and approved this 28th _ day of February 19 89 yor ATTEST: t 1 er c 1 E i0 FORM /03/97 LEGAL DEPARTMENT RESOLUTION NO. 89-40 RESOLUTION SETTING PUBLIC HEARING ON PLANS, SPECIFICATIONS, FORM OF CONTRACT AND ESTIMATE OF COST FOR THE BENTON STREET BRIDGE WIDENING PROJECT M-4044(1)--81-52 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That a public hearing on the above-named project is to be held on the 7th day of March, 1989, at 7:30 p.m. in the Council Chambers, Civic Center, Iowa City, Iowa. 2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing for the above-named project in a newspaper published at least once weekly and having a general circulation in the city, not less than four (4) nor more than twenty (20) days before said hearing. 3. That the plans, specifications, form of contract and estimate of cost for the above-named project are hereby ordered placed on file by the City Engineer in the office of the City Clerk for public inspection. It was moved by Ambrisco and seconded by Balmer that the resolution as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X x X X X X X AMBRISCO BALMER COURTNEY HOROWITZ KUBBY LARSON McDONALD Passed and approved this 28th day of February, 1989.��j�� iiy �r AYOR ATTEST: 791;2 ' e) ZL vt n nJ CIT CLERK AP,��V A T FORM Legal Department 3�3 0 RESOLUTION NO. 89-42 RESOLUTION AUTHORIZING AN EXTENSION OF THE DESIGNATED TARGET NEIGHBORHOODS FOR THE RENTAL REHABILITATION PROGRAM. WHEREAS, the City of Iowa City is the recipient of Rental Rehabilitation Grant Funds from the U.S. Department of Housing and Urban Development; and WHEREAS, the City of Iowa City is permitted to include additional target neighborhoods for the Rental Rehabilitation Program according to the Code of Federal Regulation 24 CFR 511.20(b)(2) and the City's Program Description as approved by the U.S. Department of Housing and Urban Development; and WHEREAS, the City of Iowa City did, by Resolution No. 84-278, Resolution No. 85- 206 and Resolution No. 86-122, designate target neighborhoods for the Rental Rehabilitation Program; and i WHEREAS, the City of Iowa City desires to extend said target neighborhoods for the Rental Rehabilitation Program to include the St. Clements Street Neighborhood; and WHEREAS, Exhibit A which is attached and by this reference made a part of this Resolution shows the proposed extension of the Rental Rehabilitation Target Neighborhood. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the target neighborhood as shown on Exhibit A attached hereto be designated for the Rental Rehabilitation Program. It was moved by Ambrisco and seconded by Horowitz the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Balmer X Courtney X Horowitz X Kubby X Larson X McDonald Passed and approved this 28th day of February 1989. LL ZZ bo YOR Approved as to Form ATTEST: 791p, /✓•J. S. akhf CITY CLERK Legal Department 301 EXHIBIT A T N IOWA CITY r RENTAL REHABILITATION TARGET NEIGHBORHOODS existing rental rehab areas expanded area 3W RESOLUTION NO. X89-43 RESOLUTION APPROVING AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AND ATTEST, RESPECTIVELY, A CHAPTER 28E AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS FOR THE OPERATION AND MAINTENANCE OF A UNIFIED WATER UTILITY SYSTEM AND A UNIFIED SANITARY SEWER SYSTEM. WHEREAS, since prior to 1961, the cities of Iowa City and University Heights have been served by a single water utility system, which until 1961 was privately owned; and WHEREAS, in September of 1961, the City of Iowa City acquired the said water utility system, including all facilities and components thereof located within the cities of Iowa City and University Heights; and WHEREAS, since November of 1961, Iowa City has generated and distributed potable water to the residents of Iowa City and University Heights through a water utility system which includes wells and river intakes, a water treatment plant, pumps, and storage tanks located in Iowa City, and water mains located in Iowa City and in University Heights, all of which facilities are owned by Iowa City, having either been purchased or constructed by Iowa City; and WHEREAS, since acquisition of the said water utility system, the City of Iowa City has been maintaining and repairing water utility system components within University Heights, including mains and pumps; and WHEREAS, since prior to 1961, the City of Iowa City has, at separate sanitary sewer interconnection points along the boundaries of Iowa City and University Heights, accepted for collection wastewater generated by residents of University Heights, and has treated such wastewater at Iowa City's wastewater treatment plant; and WHEREAS, Iowa City's provision of water and sewer services to University Heights has been the subject of various agreements, to wit as follows: (A) A sewage disposal contract dated July 29, 1954, (B) A water service contract dated November 8, 1961, covering Iowa City's provision of water services to the City of University Heights for a term of 30 years; and (C) A municipal services contract dated November 2, 1966, covering Iowa City's provision of a variety of municipal services to University Heights, including sewer services, superseding the earlier sewage disposal contract of July 1954, but excluding water service; and WHEREAS, the municipal services contract dated November 1966, providing for Iowa City's provision of a variety of municipal services, including sewer services, to University Heights was cancelled by the City of Iowa City on January 13, 1976; and ,3 tl-9 Resolution No. 89-43 Page 2 WHEREAS, the City Councils of Iowa City and University Heights have been advised and do believe that it would be in their mutual best interests to modify and renew the existing agreement for Iowa City's provision of water services to University Heights, and to initiate a new agreement with respect to Iowa City's provision of sanitary sewer services to University Heights, all under a single, long-term agreement creating a unified water system and a unified sanitary sewer system; and WHEREAS, an Agreement has been negotiated and prepared, pursuant to Chapter 2BE of the Iowa Code providing for the joint exercise of municipal governmental powers and authorizing the City of Iowa City to provide water utility service and sanitary sewer service to the City of University Heights, which Agreement is attached hereto and made a part hereof. NOW, THEREFORE, BE, AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that the Chapter 28E Agreement Between the City of Iowa City and the City of University Heights for the Operation and Maintenance of a Unified Water Utility System and a Unified Sanitary Sewer System," attached hereto and made a part hereof, is hereby approved as to form and content. AND BE IT FURTHER RESOLVED that the Mayor and City Clerk be, and they are hereby authorized and directed to execute and attest, respectively, said Agreement for and on behalf of the City of Iowa City. AND BE IT FURTHER RESOLVED that upon the execution of said Agreement by the City of University Heights and receipt of an original copy thereof, the City Clerk is authorized and directed to file said Agreement with the Iowa Secretary of State and to record same in the Johnson County Recorder's Office. It was moved by Balmer and seconded by Courtney the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: Y Ambrisco X Balmer X Courtney X Horowitz X Kubby X Larson T- McDonald Passed and approved this 28th day of February , 1989. ATTEST: 7%1n 2V. 411tJ CITY CLERK YOR Ap r ved s to Form Legal Department 3 �_9 Revised 1/20/89 CHAPTER 28E AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS FOR THE OPERATION AND MAINTENANCE OF A UNIFIED WATER UTILITY SYSTEM AND A UNIFIED SANITARY SEWER SYSTEM WITNESSETH: WHEREAS, since prior to 1961, the cities of Iowa City and University Heights have been served by a single water utility system, which until 1961 was privately owned; and WHEREAS, in September of 1961, the City of Iowa City acquired the said water utility system, including all facilities and components thereof located within the cities of Iowa City and University Heights; and WHEREAS, since November of 1961, Iowa City has generated and distributed potable water to the residents of Iowa City and University Heights through a water utility system which includes wells and river intakes, a water treatment plant, pumps, and storage tanks located in Iowa City, and water mains located in Iowa City and in University Heights, all of which facilities are owned by Iowa City, having either been purchased or constructed by Iowa City; and WHEREAS, since acquisition of the said water utility system, the City of Iowa City has been maintaining and repairing water utility system components within University Heights, including mains and pumps; and i WHEREAS, since prior to 1961, the City of Iowa City has, at separate sanitary sewer interconnection points along the boundaries of Iowa City i and University Heights, accepted for collection wastewater generated by residents of University Heights, and has treated such wastewater at Iowa City's wastewater treatment plant; and WHEREAS, Iowa City's provision of water and sewer services to University Heights has been the subject of various agreements, to wit as follows: (A) A sewage disposal contract dated July 29, 1954, 3Y-9 -2- (B) A water service contract dated November 8, 1961, covering Iowa City's provision of water services to the City of University Heights for a term of 30 years; and (C) A municipal services contract dated November 2, 1966, covering Iowa City's provision of a variety of municipal services to University Heights, including sewer services, superseding the earlier sewage disposal contract of July 1954, but excluding water service; and WHEREAS, given the high degree of interconnection between the water distribution system in Iowa City and the water distribution system in University Heights, and given the expense and difficulty which University Heights would experience in acquiring and separating its water distribu- tion system from Iowa City, and in constructing its own water generation and distribution system in University Heights, it is presently deemed to be infeasible for University Heights to acquire, construct, and operate a separate water utility system; and WHEREAS, the municipal services contract dated November 1966, providing for Iowa City's provision of a variety of municipal services, including sewer services, to University Heights was cancelled by the City of Iowa City on January 13, 1976; and WHEREAS, given the high degree of interconnection between the Iowa City and University Heights sanitary sewer systems, and given the unavail- ability of alternative means of wastewater treatment for University Heights, it is presently deemed to be infeasible for University Heights to separate said sanitary sewer systems, to separately operate its sanitary sewer system, and to obtain elsewhere or provide for the treatment of wastewater generated by its residents; and WHEREAS, the City of Iowa City is under mandate by the Department of Natural Resources of the State of Iowa to complete the construction certain improvements to its sanitary sewer system, including the rehabili- tation of Iowa City's existing wastewater treatment plant, the construc- tion of a new wastewater treatment plant and associated mains, and the construction and improvement of certain interceptor sewers, including the .3,040r7 -3 - Benton Street Interceptor which carries a major portion of the wastewater generated by University Heights' residents; and WHEREAS, the parties hereto have been advised and do believe that it would be in their mutual best interests to modify and renew the existing agreement for Iowa City's provision of water services to University Heights, and to initiate a new agreement with respect to Iowa City's provision of sanitary sewer services to University Heights, all under a single, long-term agreement creating a unified water system and a unified sanitary sewer system; and WHEREAS, this Agreement has been entered into by and between the parties, pursuant to Chapter 28E of the Iowa Code providing for the joint exercise of municipal governmental powers in order to authorize Iowa City to provide water utility service and sanitary sewer service to University Heights. NOW, THEREFORE, in consideration of the covenants and obligations herein made and undertaken, the City of Iowa City (hereinafter "Iowa City") and the City of University Heights (hereinafter "University Heights"), hereinafter collectively referred to as "the parties," do hereby agree as follows: Part I - Joint Exercise of Powers Under Chapter 28E of the Code of Iowa to Establish a Unified Water Utility System and a Unified Sanitary Sewer System. 1. Pursuant to Chapter 28E of the 1987 Code of Iowa, the parties do hereby agree that the purpose of this Agreement is to jointly exercise their respective powers to finance, construct, own, and operate certain public improvements, to wit, a water utility system for the generation and distribution of potable water to municipal residents, and a sanitary sewer system for the collection and treatment of wastewater generated by municipal residents. 2. The parties agree that the water generation and distribution facilities located within their respective jurisdictions shall 3 s�9 :T hereafter be operated as a single unified water utility system, as provided in Part II hereof, and that the wastewater collection and treatment facilities located within their respective jurisdictions shall hereafter be operated as a single unified sanitary sewer system, as provided in Part III hereof. 3. The parties agree that the design, construction, operation, main- tenance, and management of facilities comprising the unified water utility system shall be jointly financed by the residents of Iowa City and University Heights through payment of uniform water use rates and charges provided in Part II hereof, and that the design, construction, operation, maintenance, and management of facilities comprising the unified sanitary sewer system shall be jointly financed by the residents of Iowa City and University Heights through payment of uniform sewer use rates as provided in Part III hereof. 4. The parties agree that the City Manager of the City of Iowa City shall be designated as the administrator for purposes of this Agreement, as provided by Section 28E.6 of the Code of Iowa, and that the City Manager shall administer and manage the operation of both the unified water utility system and the unified sanitary sewer i system. i� 5. The parties agree that this Agreement shall be effective upon its execution by both parties, its filing with the Secretary of State, and its recording in the Johnson County Recorder's Office, as provided by Section 28E.8 of the 1987 Code of Iowa, and it shall remain in effect until termination by the parties, or either of them, as hereafter provided in Part IV. Part II - Operation and Funding of the Unified Water Utility System 1. Grant of Authority and Acceptance. The City of University Heights does hereby grant unto the City of Iowa City the authority to operate within the present or future corporate limits of University Heights a unified water utility system; to act as the agent of University Heights in the operation thereof for the generation, storage and 3 �9 -5 - distribution of potable water to University Heights for consumption by its residents; to maintain, operate, and extend, renew, remove and replace Iowa City's existing water mains, pipes and other water utility appurtenances and facilities within University Heights; to acquire, own, maintain, operate, renew, remove and replace additional plants and works and all necessary or desirable appurtenances thereto used or useful in said water utility system; and to enter upon, into, use and occupy the present and future streets, alleys, bridges, parks and other public places and ways within the present and any future corporate limits of University Heights for erecting, constructing, installing, maintaining, renewing, removing, replacing, relocating, repairing, owning and operating all necessary facilities, including pipes, mains, conduits and appurtenances and appendages thereto for the production, conveyance, storage, treatment, distribution, supply and sale of water; and to charge and collect rates and charges for water use and for water utility services, all as hereinafter provided. The City of Iowa City does hereby accept said grant of authority, and hereby agrees to operate the water distribution system within University Heights as part of a unified water utility system; to generate potable water and distribute such water in University Heights for consumption by its residents in accordance with all State and Federal requirements therefor; and to operate and administer the said unified water utility system, including the assessment and collection of water use rates and water utility charges, in a prudent, fair, and uniform manner in Iowa City and in University Heights, all as hereinafter provided. 2. Iowa City agrees to generate water from wells and river intakes in Iowa City, to treat water at its water treatment plant in Iowa City to make it suitable for human consumption, to store potable water for the use of residents of Iowa City and University Heights, and to transport potable water to University Heights and to distribute same to residents of University Heights through its system of water tanks, pumps and mains. Iowa City agrees that in the operation of said unified water utility system, it will produce potable water meeting ZZ all regulations and requirements of the Federal Enviromental Protec- tion Agency (EPA) and Iowa Department of Natural Resources (DNR) applicable to the generation, treatment, storage, and distribution thereof, and that it will generate, treat, store, transport, and distribute potable water in quantities sufficient to serve residents in both Iowa City and University Heights. 3. Iowa City does hereby agree to operate and maintain the potable water generation, treatment, storage, pumping, transportation and distribu- tion facilities owned by Iowa City and located in either Iowa City or University Heights in a prudent, proper, and safe manner, and to preserve and protect said facilities to and for the benefit of the residents of Iowa City and University Heights. For purposes of this provision, maintenance shall include routine maintenance, repair and replacement of such facilities as determined necessary by the City of Iowa City. 4. All excavations and other work in connection with the opening and closing of streets and other public places by Iowa City shall be done in a workmanlike manner in accordance with the practices established by Iowa City in the operation of the unified water utility system. Whenever Iowa City is about to lay any mains or pipes in streets or other public places, it shall notify University Heights thereof and University Heights shall furnish Iowa City with the grade of such street or other public place, and Iowa City shall lay its mains with respect to such grade. If thereafter University Heights shall change the grade of such street or other public place, or otherwise make it necessary to raise or lower any mains or hydrants installed therein by Iowa City, the cost thereof shall be repaid by University Heights to Iowa City. In all other cases, the cost of opening and closing any streets or public places and repairing and repaving the same shall be borne by Iowa City as part of the cost of operating the unified water utility system. S. University Heights hereby agrees to enact, simultaneously with its execution of this Agreement, Ordinance No. 9Z establishing procedures and regulations for the provision of water utility service 3�f � -7 - to its residents; establishing rates and charges for water use by and for water utility services to its residents; establishing regulations and procedures for the installation and maintenance of meters for the measurement of water usage by University Heights residents and for the billing of water rates and charges; and establishing regulations, construction standards, and procedures for extensions and connections to the water utility system in University Heights. University Heights hereby authorizes Iowa City: (1) to act as its exclusive agent in the enforcement of the regulations contained in said Ordinance; (2) to act as its exclusive agent in the determination of all matters under said Ordinance requiring the exercise of judgment or discretion in the operation and maintenance of said system, including all such discretionary determinations therein reserved to the city council or city clerk of University Heights, but excluding the setting of rates and charges; and (3) to act as its exclusive agent in the collection of all fees and charges provided in Article III of said Ordinance for the operation and maintenance of said system. University Heights agrees (1) to maintain said Ordinance in effect until termination of this Agreement; (2) not to amend or modify said Ordinance without the prior written consent of the City Council of Iowa City and of the DNR; (3) to make such reasonable amendments to said Ordinance as may from time to time be suggested and enacted by Iowa City; and (4) to make amendments as required by the EPA or the DNR. Iowa City accepts said authorization, and agrees to enforce and administer Ordinance No. W- for and on behalf of University Heights as its exclusive agent. 6. University Heights agrees that it will, pursuant to said Ordinance, impose the same water rates and charges upon its residents as are presently reflected in Chapters 33 and 32.1 of the Code of Ordinances of the City of Iowa City and as are presently charged to residents of Iowa City. University Heights hereby authorizes the City of Iowa City to act as its agent in the collection of said water rates and charges, and to retain the moneys so collected in consideration for Iowa City's provision of water utility service to the residents of -8 - University Heights. University Heights acknowledges and agrees that the said water rates and charges presently in effect in Iowa City and to be imposed in University Heights are fair and reasonable, and have been calculated in an amount necessary to defray the operating costs and capital costs of the unified water utility system, including the retirement of the bonded indebtedness undertaken by Iowa City to finance improvements to said system. University Heights acknowledges and agrees that it is fair and appropriate for its residents to share the capital costs for said improvements inasmuch as University Heights and its residents are part of said unified water utility system and derive substantial benefit therefrom. 7. The parties agree that Iowa City shall operate and administer the water utility system as an enterprise separate and distinct from all other activities of the City of Iowa City, and that the operation, maintenance, and administration of the said water utility enterprise shall be funded solely from revenues generated from water rates and i' charges collected in Iowa City and University Heights pursuant to this Agreement. The parties further agree that the following categories of expense shall be chargeable as costs of operation, maintenance, and administration of the water utility enterprise: (a) general management and administration, including legal services; (b) system maintenance costs, including but not limited to inspec- tion, routine maintenance, repair, and replacement; (c) system operating costs, including but not limited to energy, i labor, materials, services, and equipment; (d) financial administration, including accounting, billing, collection, financial planning for investments and capital debt; and (e) tort liability costs, including the costs of insurance, defense and settlement of claims and lawsuits, and tort judgments resulting from operation of the unified water utility system. am 8. The parties agree that Iowa City's water rates and charges shall be subject to periodic review. University Heights acknowledges and agrees that it may, during the term of this Agreement, be necessary for Iowa City to (a) incur indebtedness to construct other improve- ments to the unified water utility system, including portions thereof located in University Heights, and (b) increase the annual budget for the unified water utility system in order to cover increased costs for operation, maintenance, and administration. University Heights agrees that upon the occurrence of either of said events, Iowa City may propose an increase in the water rates and charges applicable in both Iowa City and University Heights. Iowa City shall give notice of such proposal to University Heights prior to formal consideration thereof by the City Council of Iowa City and at least 90 days prior to the intended effective date thereof. Such notification shall include cost data and an explanation of the need or justification for the proposed increase in water rates and charges. University Heights shall be required to enact an ordinance effecting the same increase in water rates and charges upon enactment of those increases in water rates and charges by Iowa City, and to provide for the same effective date for said increases as Iowa City, unless University Heights notifies Iowa City in writing within 60 days of receipt of the notice, as hereinabove provided, that it does not intend to enact such an increase in water rates and charges. If University Heights fails to enact such increase in water rates and charges by ordinance effective simultaneously with that enacted by Iowa City, University Heights shall pay to Iowa City, from its general fund or other appropriate city fund, the difference between the revenue generated under the water rates and charges in effect in University Heights and the revenue which would have been generated under the increased rates and charges enacted by Iowa City, plus a 10% surcharge upon said difference for the additional costs of administration which will be incurred by Iowa City in calculating, billing, and collecting water rates and charges under a dual -rate 359 I -10 - system. University Heights' obligation to pay said difference shall commence upon the effective date of Iowa City's ordinance increasing water rates and charges, and shall continue until the effective date of the University Heights ordinance which enacts the increased rates and charges enacted by Iowa City. Iowa City shall calculate and bill University Heights for said differential payment bi-monthly on the basis of total water consumption in University Heights during the preceding two-month period. Total water consumption means the aggregate cubic foot total of all water used by University Heights residents, as measured by meters installed by the City of Iowa City. University Heights shall pay said differential payments to Iowa City bi-monthly within 30 days of receipt of the bill thereof. University Heights agrees that if Iowa City is unable to collect any delinquent sewer service accounts in University Heights by discon- tinuance of water and/or sewer service to such users, the University Heights city council shall, at Iowa City's request, adopt by resolu- tion, and the city clerk shall certify, said delinquent amounts as liens against the properties and shall file same with the county auditor. University Heights further agrees to promptly forward to Iowa City any moneys for delinquent accounts recovered by use of such lien procedure. If University Heights declines to certify such .i delinquent amounts to the county auditor as liens upon the properties served it shall , pay such delinquent amounts to Iowa City within 60 days of its decision not to certify said amounts. 9. Iowa City agrees in connection with all extensions of its mains to install fire hydrants as requested by University Heights provided that, unless Iowa City expressly agrees otherwise, not more than one I'1 fire hydrant shall be required to be installed on each four hundred feet of extension. All fire hydrants hereafter installed shall be of six inch size, and shall meet the then existing standards of the City Of Iowa City. University Heights agrees to pay Iowa city as full compensation for the use of each existing and future fire hydrant now or hereinafter installed by Iowa City so long as the same remains in use, and as full compensation for any water used by University Heights from any such hydrant for fire protection or fire prevention, Doc the sum of $50.00 per year for each such fire hydrant, said payment to be paid in two equal semi-annual installments on the first day of May and on the first day of November in each year. During the terms of this contract, University Heights, or its contract agent for the provision of fire protection service, shall at all times have full and unobstructed use of fire hydrants now or hereinafter installed by Iowa City, but only for fire protection or fire prevention purposes. Iowa City agrees to periodically inspect and operate said hydrants to determine if they are operating properly. University Heights agrees that it shall also periodically inspect said fire hydrants and notify Iowa City of any damaged, defective or inoperative hydrants. 10. Iowa City agrees at all times to defend, indemnify, and hold University Heights harmless from all liability, loss, cost, damage or expense resulting from the opening or closing of streets or other public places by Iowa City as well as from the presence of its water mains or other water utility facilities in such streets and public places and from the manner of operation and maintenance by Iowa City of its said mains and other facilities. Iowa City shall at all times, subject to the capacity of its plant and facilities, endeavor to furnish an adequate and uninterrupted supply of water to University Heights and its inhabitants and to maintain pressure I required for fire protection and prevention; provided, however, that Iowa City shall not be liable for any interruption of service or failure of pressure or supply of water due to accident or causes beyond the reasonable control of Iowa City, and no such interruption shall constitute a breach of this contract provided Iowa City shall j use due diligence to restore service within a reasonable time. Part III - Operation and Funding of the Unified Sanitary Sewer System 1. Grant of Authority and Acceptance. The City of University Heights does hereby grant unto the City of Iowa City the authority to operate a unified sanitary sewer system in University Heights, to act as the agent of University Heights in the operation thereof for the collec- tion and treatment of wastewater generated in University Heights or by its residents, to provide sanitary sewer maintenance services 3Off . -12 - within University Heights, to enter upon city streets and into city facilities in University Heights for purposes of maintenance, operation, and administration of said unified sanitary sewer system, and to charge and collect rates and charges for sewer use and for sewer services, all as hereinafter provided. The City of Iowa City does hereby accept said grant of authority, and hereby agrees to operate the sanitary sewer system within University Heights as part of a unified sanitary sewer system, to collect and accept wastewater generated in University Heights or by its residents, to transport such wastewater to and provide treatment thereof at Iowa City's wastewater treatment plant or plants in accordance with all State and Federal requirements therefor, and to operate and administer the said unified sanitary sewer system, including the assessment and collection of sewer use rates and sewer service charges, in a prudent, fair, and uniform manner in Iowa City and in University Heights, all as hereinafter provided. 2. Iowa City agrees to receive and accept wastewater generated by University Heights residents, and collected in University Heights sanitary sewers, at four manholes situated on or near the common boundaries of Iowa City and University Heights, which manholes are identified on the sewer map attached hereto as Exhibit A. Said i manholes shall hereafter be considered as the points of interconnec- � I� tion between the sanitary sewer systems of Iowa City and University Heights, and shall be used to define the respective jurisdictions of the parties for purposes of this Agreement. 3. Iowa City agrees to collect wastewater generated in University Heights at the said points of interconnection, and to thereafter transport said wastewater through its system of sanitary sewers, mains, and interceptors for treatment at Iowa City's wastewater treatment plant or plants, now existing or hereafter constructed. 4. Iowa City agrees that the wastewater treatment provided shall meet all present and future requirements imposed on Iowa City by the Federal Environmental Protection Agency (hereinafter "EPA") or the 3�� -13 - Iowa Department of Natural Resources (hereinafter "DNR") for all wastewater generated by the residents and originating within the corporate limits of University Heights. In performance of this requirement, the parties acknowledge and agree that Iowa City is presently under mandate by the Iowa Department of Natural Resources to complete the plan of wastewater collection and treatment improvements identified in Exhibit B. It is further acknowledged and agreed that as part of said plan of improvements, Iowa City has procured the design, and DNR approval of the design, for the Benton Street Sanitary Interceptor Sewer Project, which project involves the reconstruction of a major sewer serving University Heights. It is further acknowledged and agreed that Iowa City has sold $38.95 million of its sewer revenue bonds to finance the construction of said plan of improvements, including the Benton Street Sanitary Interceptor Sewer Project, and that Iowa City is under DNR mandate to award a bid and commence construction on said project by March 15, 1989. i In consideration of the covenants and obligations herein made and undertaken by University Heights, Iowa City does hereby agree to acquire the necessary properties and property interests and to complete the construction of said plan of improvements, including the i; Benton Street Sanitary Interceptor Sewer Project, to and for the I'. mutual benefit of University Heights and Iowa City and as mandated by the DNR. 5. Iowa City does hereby agree to operate and maintain the sanitary sewer (wastewater collection) and wastewater treatment facilities located in or owned by Iowa City in a prudent, proper, and safe manner, and to preserve and protect said facilities to and for the benefit of the residents of Iowa City and University Heights. For purposes of this provision, maintenance shall include routine maintenance, repair and replacement of such facilities as determined necessary by the City of Iowa City. 6. Iowa City does hereby agree to operate and provide routine main- tenance services for sanitary sewer (wastewater collection) facili- 3 �� -14 - ties owned by and located in University Heights, as hereafter provided. For purposes of this provision, routine maintenance means and includes periodic inspection of sanitary sewer manholes to determine if said sewers are operating properly, and periodic "jetting" or "rodding" of sanitary sewers, either according to a predetermined schedule established pursuant to Iowa City's sewer administration policy, or as determined necessary pursuant to citizen complaints or requests. Routine maintenance does not mean or include the repair or replacement of sanitary sewers located in, owned by, or under the jurisdiction of University Heights. The parties agree that University Heights shall retain primary responsibility for the inspection of its sanitary sewers to determine the structural condition and design adequacy thereof, and for the repair and replacement of defective or improperly designed sanitary sewers located in, owned by, or under the jurisdiction of University Heights. University Heights agrees to maintain its sanitary sewers system in accordance with all applicable State of Iowa and Federal regulations, and in a reasonably good condition permitting safe and efficient operation thereof. For purposes. of this provision, sanitary sewers which require routine maintenance (rodding or jetting) more than semi-monthly in order to function properly shall be considered substandard and in need of repair or replacement. Iowa City agrees that it will report to University Heights such defective structural conditions or improper design as its agents or employees may observe in the ordinary course of their performance of Iowa City's operation and routine maintenance obligations; provided, however, that Iowa City is not hereby undertaking to provide profes- sional engineering or inspection services to determine the structural condition or design adequacy of sanitary sewers located in, owned by, or under the jurisdiction of University Heights. 7. University Heights hereby releases and agrees to defend, indemnify, and hold harmless the City of Iowa City, its officers, agents, and employees from and against any and all claims, suits, actions, debts, damages, costs, charges and expenses, including court costs and 3�9 I Revised 2/1/89 -15 - attorney fees, and against all liability, losses, and damages of any nature arising from the defective condition or inadequate design of University Heights' sanitary sewer system, or arising from the failure of Iowa City, its officers, agents, or employees to discover such defective condition or inadequate design during the course of operation and routine maintenance by Iowa City, but excluding such defects or other conditions, caused by the operation and routine maintenance activities of Iowa City, which result in damage to the person or property of residents of University Heights or other third parties to this Agreement. University Heights further releases and agrees to defend, indemnify, and hold harmless the City of Iowa City, its officers, agents, and employees, from all liability for damage to University Heights' sanitary sewer system occurring during the course of or as a result of Iowa City's performance of operation and routine maintenance activities thereon, and for consequential damages to other property, structures, or facilities owned by University Heights, unless it is shown that such damage was occasioned by the sole negligence of Iowa City, its officers, agents and employees, and did not in any way result from the defective condition or inadequate design of University Heights' sanitary sewer system. This provision shall have no force and effect as to those portions of the University Heights sanitary sewer system hereafter accepted by Iowa City pursuant to paragraph 8. 8. Paragraphs 6 and 7 to the contrary notwithstanding, Iowa City hereby agrees to accept responsibility for the inspection, repair and replacement of the University Heights sanitary sewer system and to accept responsibility for its condition and design, as hereafter provided. Iowa City agrees to accept jurisdiction of the University Heights sanitary sewer upon completion of the following terms and conditions: (a) University Heights shall cause its City Engineer to undertake a survey of the University Heights sanitary sewer system to determine the following: (1) All locations on each sanitary sewer main where sanitary sewer manholes are more than 400 feet apart (substandard sewer design); 3fe9 -16- (2) All locations where there is no manhole on the upstream end of a sanitary sewer main (substandard sewer design); (3) All locations where sanitary sewer mains are of less than 8" in diameter (substandard sewer design); (4) All locations where sanitary sewer mains are constructed of either non -reinforced concrete or "Orangeburg" pipe (substandard materials); (5) The condition of each manhole, including the lid, ring, walls, and bottoms, and the design and materials used in the construction of each manhole; (6) All locations at which a sanitary sewer service drop into a sanitary sewer manhole is in excess of 2 feet above the bottom of the manhole; and (7) All locations at which storm sewer inlets are connected to a sanitary sewer, or at which there is a cross connection between a storm sewer and the sanitary sewer system. In making said survey, the University Heights City Engineer shall review all appropriate plats and subdivision documents relating to the University Heights sanitary sewer system, shall conduct a physical inspection of each sanitary sewer manhole in University Heights, and shall, where necessary, ascertain construction materials used in constructing sewers by contact with the developers, plumbers, or contractors who constructed or maintain said sewers in University Heights. (b) Upon completion of said survey, the University Heights City Engineer shall prepare a report detailing all locations and conditions as provided in (a) above, and shall prepare maps or plats of the entire University Heights sanitary sewer system, showing the location of all sewer mains, all manholes and the spacing between same, and all cross -17 - connections between storm sewer inlets or storm sewers and the sanitary sewer system. The University Heights City Engineer shall promptly deliver the completed report and said maps or plats to the Iowa City Public Works Director. (c) Upon approval and acceptance of said report and said maps or plats by Iowa City's Public Works Director, the City Council of University Heights shall by resolution approve and accept said report and said maps or plats. Upon the adoption of said resolution, the University Heights sanitary sewer system shall be deemed accepted by Iowa City for purposes of this Agreement. 9. Upon Iowa City's acceptance of University Heights' sanitary sewer system, Iowa City shall thereafter operate and maintain the sanitary sewer (wastewater collection) system located in and owned by University Heights in a prudent, proper, and safe manner, and shall preserve and protect said system to and for the benefit of the residents of University Heights, except as hereinafter provided. For purposes of this provision, operation and maintenance shall mean and include routine maintenance (as defined in paragraph 6 above), repair, and replacement of such facilities as determined necessary by the City of Iowa City. Iowa City further agrees that upon its acceptance of the University Heights sanitary sewer system it will thereafter: (a) accept responsibility for the continuing operating condition, structural integrity and design adequacy of said system, (b) periodically inspect said system to determine the necessity for repair or replacement and to assure the adequacy thereof in accordance with Iowa City's sewer administration policy, (c) secure the design and construction of improvements necessary to assure the proper function and design of said system, and (d) finance the construction of such improvements from sewer revenues generated as hereafter provided. 3 �9 -18 - The parties agree that the liability, repair and replacement obliga- tions undertaken by Iowa City pursuant to this paragraph shall not apply to those portions of the University Heights sanitary sewer system exhibiting either substandard sewer design or constructed of substandard materials, as per paragraph 8(a) above, regardless whether those substandard conditions are identified in the report of the University Heights City Engineer pursuant to paragraph 8(b), or are thereafter discovered. University Heights further agrees that it will, within one year of its execution of this Agreement, undertake a project to provide for the construction of as many additional manholes as are necessary (1) so that manhole spacing throughout its sanitary sewer system shall not exceed 400 feet, and (2) so that there will be a manhole on the upstream end of each sewer main. 10. University Heights agrees that it will not allow extensions or connections to its sanitary sewer system without the prior consent of the city manager of Iowa City. Until acceptance of said system by Iowa City, University Heights shall process all such proposed expansions, extensions and connections for its review and approval and for review and approval by Iowa City, and shall inspect the work done in connection therewith. Upon Iowa City's acceptance of said system, Iowa City shall act as the agent of University Heights in processing all such proposals for review and approval, and in inspecting the work done in connection therewith. 11. Except for unavoidable and unintentional infiltration and inflow, and existing cross -connections, University Heights agrees not to here- after permit storm water to enter the University Heights sanitary sewer system, and further agrees not to hereafter permit the connec- tion of its storm sewer inlets to its sanitary sewer system, or to permit any cross -connections between its storm sewer system and its sanitary sewer system. 3 q_ -19- 12. University Heights agrees to enact, simultaneously with its execution of this Agreement, Ordinance No. qZ establishing procedures and regulations for the provision of sanitary sewer service to its residents; establishing regulations regarding the use of sanitary sewers, the strength and content of wastewater and effluents discharged thereto, and the necessity for pre-treatment facilities; establishing rates and charges for sewer use by and for sewer services provided to its residents; and establishing regula- tions, construction standards and procedures for extensions and connections to its sanitary sewer system. University Heights hereby authorizes Iowa City: (1) to act as its exclusive agent in the enforcement of the regulations contained in said Ordinance; (2) to act as its exclusive agent in the deter- mination of all matters under said Ordinance requiring the exercise of judgment or discretion in the operation and maintenance of said system, including all such discretionary determinations therein reserved to the city council, city clerk, or city engineer of University Heights, but excluding the setting of rates and charges; and (3) to act as its exclusive agent in the collection of all fees and charges provided in Article III of said Ordinance for the operation and maintenance of said system. University Heights agrees (1) to maintain said Ordinance in effect until termination of this Agreement; (2) not to amend or modify said Ordinance without the prior written consent of the City Council of Iowa City and of the DNR; (3) to make such reasonable amendments to said Ordinance as may from time to time be suggested and enacted by Iowa City; and (4) to make amendments as required by the EPA or the DNR. Iowa City accepts said authorization, and agrees to enforce and administer Ordinance No. 9 Z. for and on behalf of University Heights as its exclusive agent. 13. University Heights agrees that it will, pursuant to said Ordinance, impose the same sewer rates and charges upon its residents as are 307 -20 - presently reflected in Chapters 33 and 32.1 of the Code of Ordinances of the City of Iowa City and as are presently charged to residents of Iowa City. University Heights hereby authorizes the City of Iowa City to act as its agent in the collection of said sewer rates and charges, and to retain the moneys so collected in consideration for Iowa City's provision of sanitary sewer service to the residents of University Heights. University Heights acknowledges and agrees that the said sewer rates and charges presently in effect in Iowa City and to be imposed in University Heights are fair and reasonable, and have been calculated in an amount necessary to defray the operating costs and capital costs of the unified sanitary sewer system, including the retirement of the bonded indebtedness undertaken by Iowa City to finance the plan of improvements set forth in Exhibit B. University Heights acknowledges and agrees that it is fair and appropriate for its residents to share in the said capital costs for said plan of improvements inasmuch as University Heights and its residents are part of said unified sanitary sewer system and derive substantial benefit therefrom. 14. The parties agree that Iowa City shall operate and administer the united sanitary sewer system as an enterprise separate and distinct from all other activities of the City of Iowa City, and that the operation, maintenance, and administration of said system shall be funded solely from revenues generated from sewer rates and charges collected in Iowa City and University Heights pursuant to this Agreement. The parties further agree that the following categories of expense shall be chargeable as costs of operation, maintenance, and administration of the unified sanitary sewer system: (a) general management and administration, including legal services; (b) system maintenance costs, including but not limited to inspec- tion, routine maintenance, repair and replacement; (c) system operating costs, including but not limited to energy, labor, materials, services, and equipment; 3�9 � -21- (d) financial administration, including accounting, billing, collection, financial planning for investments and capital debt; (e) tort liability costs, including the costs of insurance, defense and settlement of claims and lawsuits, and tort judgments resulting from operation of the unified water utility system. 15. The parties agree that Iowa City's sewer rates and charges shall be subject to periodic review. University Heights acknowledges and agrees that it may, during the term of this Agreement, be necessary for Iowa City to (a) incur further indebtedness to complete the construction of the plan of improvements set forth in Exhibit B, (b) incur indebtedness to construct other improvements to the unified sanitary sewer system, including portions thereof located in University Heights if and when said system'is accepted by Iowa City pursuant to paragraph 8, and (c) increase the annual budget for the unified sanitary sewer system in order to cover increased costs for operation, maintenance, and administration. University Heights agrees that upon the occurrence of any of said events, Iowa City may propose an increase in the sewer rates and charges applicable in both Iowa City and University Heights. Iowa City shall give notice of such proposal to University Heights prior to formal consideration thereof by the City Council of Iowa City and at least 90 days prior to the intended effective date thereof. Such notification shall include cost data and an explanation of the need or justification for the proposed increase in sewer rates and charges. University Heights shall be required to enact an ordinance effecting the same increase in sewer rates and charges upon enactment of those increases in sewer rates and charges by Iowa City, and to provide for the same effective date for said increases as Iowa City, unless University Heights notifies Iowa City in writing within 60 days of receipt of the notice, as hereinabove provided, that it does not intend to enact an increase in sewer rates and charges. If University Heights fails to enact such increase in sewer rates and charges by ordinance effective simultaneously with that enacted by Iowa City, University Heights shall pay to Iowa City, from its general fund or other appropriate city fund, the difference between the revenue generated under the sewer rates and charges in effect in University Heights and the revenue which would have been generated under the increased rates and charges enacted by Iowa City plus a 10% surcharge upon said difference for the additional costs of administration which will be incurred by Iowa City in calculating, billing, and collecting sewer rates and charges under a dual -rate system. University Heights' obligation to pay said difference shall commence upon the effective date of Iowa City's ordinance increasing sewer rates and charges, and shall continue until the effective date of the University Heights ordinance which enacts the increased rates and charges enacted by Iowa City. Iowa City shall calculate and bill University Heights for said differential payment bi-monthly on the basis of total water consumption in University Heights during the preceding two-month period. Total water consumption means the aggregate cubic foot total of all water used by University Heights residents, as measured by meters installed by the City of Iowa City. University Heights shall pay said differential payments to Iowa City monthly within 30 days of receipt of the bill therefore. University Heights agrees that if Iowa City is unable to collect any delinquent water service accounts in University Heights by discon- tinuance of water service to such users, the University Heights city council shall, at Iowa City's request, adopt by resolution, and the city clerk shall certify, said delinquent amounts as liens against the properties served and shall file same with the county auditor. University Heights further agrees to promptly forward to Iowa City any moneys for delinquent accounts recovered by use of such lien procedure. If University Heights declines to certify such delinquent amounts to the county auditor as liens upon the properties served, it shall pay such delinquent amounts to Iowa City within 60 days of its decision not to certify said amounts. 3 �9 -23- 16. University Heights agrees that before any new or existing industrial user, or process, or business, whose sewage exceeds or might exceed the normal domestic wastewater strength as defined herein, and whose total discharge into the sanitary sewer system equals or exceeds 50,000 gallons per day, may be connected to the University Heights sanitary sewer system, Iowa City's consent to said connection must be obtained. Iowa City shall not withhold such consent unreasonably. Prior to construction of any new industry or major remodeling of an existing facility, University Heights shall require said industry to submit its plans and specifications for its pre-treatment and sampling facilities to Iowa City for review. There shall accompany said plans and specifications the industry's estimate of the volume and strength of industrial wastewater. The estimate shall list suspended solids, B.O.D., grease and any other significant organic or inorganic material which will be contained in the industry's waste- water discharge. The said plans and specifications shall be approved or disapproved within thirty (30) days from the receipt of all the information listed above. The said industries shall not be required to provide more pre-treatment than is required by applicable Federal law, rules and regulations of Iowa City ordinances. In the event of disagreement by the parties as to the strength and flow of sewage from any industrial user, there shall be a sampling of the wastewater on the basis of a 24-hour composite sample which may be verified by a three (3) day sample using an automatic sampling device approved by Iowa City. Iowa City shall prescribe the minimum fees for the cost of treatment if any, to be charged such user; provided, however, that said fees for treatment to be charged to industrial users in University Heights shall be no less than the treatment fees charged by Iowa City to similar users located in Iowa City, and provided that standards of use applied to said user by Iowa City shall be no different than the standards applied by Iowa City to similar users located in Iowa City. Such industrial users shall also be subject to any special conditions of the Federal Government that apply to an industrial user of Iowa City's wastewater facilities; State or Federal guidelines for cost allocation, including capital, -24 - operational and replacement costs; and guidelines or rules that may be established by Iowa City relative to industrial users, provided said guidelines are applied uniformly within the two cities. 17. All wastes other than domestic wastewater originating in University Heights shall be in compliance with all applicable pre-treatment requirements of the United States Environmental Protection Agency and the Iowa Department of Natural Resources and the City of Iowa City. Such pre-treatment requirements may include, but are not limited to, Oils, toxic metals, biocides, dissolved salts, acids, and alkalies or any other materials that may violate applicable sludge disposal, stream, or effluent standards. University Heights agrees that, in the event the content of the wastewater received from University Heights exceeds normal domestic strength wastewater and such excesses cannot be traced to the source or sources, University Heights shall construct such pre-treatment facilities that will result in a discharge of normal domestic strength wastewater if requested by Iowa City to do so. In the event that such pre-treatment facilities are not under construction within six (6) months after written notice by Iowa City and completed within eighteen (18) months thereafter, Iowa City shall have the right to charge University Heights residents on the same basis as significant industrial users. i t Any material which could damage the sanitary sewers, lift stations or the wastewater treatmentloot p process shall be prohibited, and j University Heights shall be responsible for the expense of any and all repairs occasioned thereby. The sampling of the sewage shall be on the basis of a 24-hour composite sample which may be verified by a three (3) day sample using Iowa City's sampling device. University ' Heights agrees to permit Iowa City to install a sampling device to collect necessary samples upon prior notification. 18. Iowa City shall be responsible for the enforcement of such pre- treatment regulations in University Heights from and after its acceptance of the University Heights sanitary sewer system as provided in paragraph 8 above, and may thereafter require users in University Heights to install pre-treatment facilities as provided by 3f�9 -2s - applicable regulations of the EPA, DNR, and/or City of Iowa City. University Heights agrees to enact ordinances as necessary to allow enforcement by Iowa City of said regulations in University Heights. 19. Iowa City and University Heights agree to adopt all necessary ordinances and such other additional rules and regulations as may be required by the EPA or the DNR for the proper control and operation of the unified sanitary sewer system, including wastewater treatment facilities. Such ordinances shall also establish rates and charges for residential and industrial users which are in accordance with applicable Federal guidelines. In addition, such ordinances (and additional rules and regulations as may be necessary) shall control the construction, operation and maintenance of the sanitary sewers and treatment facilities so they will meet or exceed EPA and DNR guidelines. 20. There shall be a mutual inspection of facilities mentioned in this agreement at any time either party may request such inspection. If, as a result of such inspection, it is determined by either party that there is a discrepancy in data and this discrepancy cannot be i resolved by the parties, then such discrepancy or dispute shall be resolved as provided in Part IV, paragraph 2. jl Part IV - General Provisions 1. Term of Agreement. This Agreement, and Iowa City's obligation to provide water utility service and sanitary sewer service to University Heights as herein provided, shall terminate on January 1, 2019, unless renewed as provided in paragraph 4. 2. Dispute Resolution - Arbitration. The parties agree that any dispute arising between them in the application or interpretation of this Agreement may by mutual agreement be submitted to arbitration. Any request for arbitration 3�_.. -26 - from one party to the other must be in writing. Upon agreement to submit to arbitration, the parties shall sign and acknowledge a written agreement specifying which issues are to be submitted to the arbitrators and the arbitration proceeding shall be limited to such issues. Arbitration shall be binding only if so agreed by the parties in advance thereof. Arbitration shall be conducted as follows: (a) If the parties agree, there may be one arbitrator; otherwise there shall be three, one named in writing by each party to this Contract and the third chosen by these two arbitrators. If they fail to select a third within fifteen days, then such arbitrator shall be chosen by the presiding officer of the state or county bar association nearest to the location of the work. Should the party requesting arbitration fail to name an arbitrator within ten days of its demand, its right to arbitra- tion shall lapse. Should the other party fail to choose an arbitrator within the said ten days, then such presiding officer shall appoint such arbitrator. Should either party refuse or neglect to supply the arbitrators with any papers or information demanded in writing, the arbitrators are empowered by both parties to proceed ex parte. (b) No one shall be qualified to act as an arbitrator for whom serving in such a role would create a conflict of interest. Each arbitrator selected shall be qualified by experience and knowledge of the work involved in the matter to be submitted to arbitration. (c) If there be one arbitrator, the award shall be binding; if three, the award of any two shall be binding and may be impeached only for fraud or mistake. Such award shall be a condition precedent to any right of legal action. (d) The arbitrators, if they deem that the case demands it, are authorized to award to the party whose contention is sustained -27 - such sums as they deem proper for the time, expense and trouble incident to the arbitration and, if the arbitration was taken without reasonable cause, damages for delay. (e) The costs of arbitration shall be shared equally by the parties. (f) The award of the arbitrators shall be in writing and it shall not be open to the objection on account of the form of the proceeding or the award. 3. Declaration of Default and Notice; Remedies Upon Default. In the event that either party determines that the other has defaulted in the performance of its obligations hereunder, the aggrieved party may declare that default has occurred and give notice thereof to the defaulting party. Notice of default shall be given in writing, shall specify the nature of the default and the provision of the Agreement involved, and shall specify what action is required of the defaulting party to correct the default. The defaulting party shall have 30 days from the date of its receipt of the notice of default to correct the default. If at the end of said 30 -day period the default has not, in the opinion of the aggrieved party, been corrected, that party may thereupon pursue all lawful remedies, including but not limited to, an action to declare the termination of this Agreement, an action for specific performance thereof, an action for damages for breach thereof, or an action for alternative relief. 4. Renewal. This Agreement shall automatically renew for additional periods of ten years, unless either party shall give notice to the other, in the form of a written resolution of the city council, of its decision to terminate the Agreement on the termination date. Such notice shall not be effective unless delivered to the other party at least 180 days prior to the termination date. 5. Effect of Termination or Non -Renewal. In the event that this agreement is terminated as provided in paragraph 3 above or in the event that this Agreement is not renewed as provided in paragraph 4 3s-9 I -28 - above, the parties agree that Iowa City shall be obligated to provide water utility service and sanitary sewer service, as herein provided in Parts II and III, for not more than two years after termination occurs or is judicially declared, during which time University Heights shall be required (1) to enact or continue in effect the same rates and charges for such services as are in effect in Iowa City, and to authorize Iowa City to collect those rates and charges from University Heights residents, and (2) to enact or continue in effect pre-treatment ordinances and to authorize Iowa City to enforce same in University Heights. During said two-year period, Iowa City shall be required to perform only routine maintenance on said systems, and University Heights shall be responsible for all repair and replacement thereof. Thereafter, (a) Iowa City shall be entitled to cap its water distri- bution mains in University Heights; (b) University Heights shall not make use of any of such water mains unless and until it has completed the purchase of the entire water distribution system in University Heights from Iowa City, which purchase shall be completed in accordance with the provisions of Section 472.46 of the 1987 Code of Iowa; (c) Iowa City shall be entitled to plug sanitary sewers from University Heights at the points of interconnection shown on Exhibit A; and (d) University Heights shall assume jurisdiction and control of the sanitary sewer system in University Heights and all respon- sibility for the treatment of wastewater generated in University Ii Heights. 1 6. For purposes of this Agreement, the following terms shall have the following meanings: (1) "Normal Strength Domestic Wastewater" means sewage which has no more than 350 parts per million of suspended solids and the five-day B.O.D. does not exceed 300 parts per million. The grease content shall not exceed 300 parts per million. (2) "Significant Industrial User" means any person, firm, or corporation owning, and includes the occupants of, any land, 3s�9 -29 - parcel of real estate or buildings where waste is produced which is discharged into the sewer system and which: (a) Has an industrial waste discharge of fifty (50) thousand gallons of equivalent normal domestic waste, or (b) Has an industrial waste discharge greater than 5% of the flow to the treatment plant, (c) Has, in its waste, a toxic pollutant in amounts as defined in standards issued under Section 307 of the Federal Water Pollution Control Act Amendments of 1972, or (d) Is found by Iowa City or the DNR to have significant impact, either singularly or in combination with other contributing industries, on their treatment works or upon the quality of effluent from the treatment works. (3) "Sewer User" or "User" means and includes residential contributors and significant industrial users, as defined in Chapter 33 of the Code of Ordinances of the City of Iowa City, or successor provisions thereto. 7. References herein to particular agencies of the Federal or State government shall mean and include the successor agencies thereof. References to particular provisions of the Iowa Code or to particular provisions of the Code of Ordinances of the City of Iowa City shall mean and include successor provisions thereof. 8. This Agreement, upon its effective date, replaces and hereby voids and nullifies any previous agreement governing Iowa City's provision of water utility service and sanitary sewer service to University Heights. 9. If, for any reason, any part of this Agreement is held unconstitu- tional, illegal or void, said decision shall not affect the validity of the remaining portions of this Agreement. -30 - THE CITY OF IOWA CITY, IOWA Dated this day of n,,, 1989. J n McOonal , Mayor Attest Marian K. Karr, City Clerk STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this day of c 4 -ATI „A�. 19before me, Otc .".�., r^. Lao , a Notary Public in and for the State ofIowa, personally appeared John McDonald and Marian K. Karr, tome personally known, and who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in i?ev-xkLOocn No. 559 •y3 passed (the Resolution adopted) by the City Council, under Roll Call No. — of the City Council on the day of,F4,1��a. l 19$x_, and that John McDonald and Marian K. Karr acknow edged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation, by it voluntarily executed. HA' 6 Notary Public in and for said County and State THE CITY OF UNIVERSITY HEIGHTS, IOWA Dated this -9 it * day of 1989. Attest: Lloyd Knowler, Ct y Clerk -31- STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this Z4 "' day of—,f3R1/d�/ , 19 e9 , before me, 15. G EFF alNotary Public in and for the State of Iowa, personally appeared E- E. RA/0'Or-3 and -"M.0 4 - KA)aV to me personally known, and who, being by me duly sworn, did say that they are the Maynd City Clerk, respec- tively, of the City of UMj!LAgSITV //E7or a 6 1 Iowa; that the seal affixed to the foregoing instrument is the corporate seal of the corporation, and that the instrument was signed and sealed on behalf of the corporation, by authority of its City Council, as contained in (the Resolution adopted) by the City Council under Roll Call X of the City Council on the 2 day of p 198and that E e HOD and KNCW4gt a acknowledged the execution of the instrument to be heir voluntary act and deed and the voluntary act and deed of the corporation, by, it voluntarily executed. Notary Public in ayd'fyila�l County and State 3s�9 Exhibit B City of Iowa City Plan of Wastewater Collection and Treatment Improvements The City's Wastewater Improvements Project is divided into five separate and distinct elements, as follows: Element 1: North Plant. This element includes screening equipment, influent pumping structure, flow equalization basins, grit removal and structure, two clarifiers, rapid sand filtration structure, chlorination and dechlorination equipment, chlorine contact tanks, and all other components necessary for modification of the City's existing wastewater treatment facility and all other components necessary to make the facility functionally complete. Element 2: South Plant. This element includes an activate sludge wastewater treatment facility consisting of an influent pumping structure, screening equipment, grit removal structure, flow equalization basin, two primary clarifiers, four mechanical aeration basins, two secondary clarifiers, chlorination and dechlorination equipment, chlorine contact tanks, two anaerobic digesters, belt filter press sludge dewatering structure, dewatered sludge storage paid, and all other components necessary to make the facility functionally complete. Element 3: Major Sewers. This element includes the South Wastewater Treatment Plant Outfall Sewer and Southeast Interceptor -Snyder Creek Segment, which are the sewers necessary to make the South plant operational. Element 4: Relief Sewers. This element includes the Southeast Interceptor -South Ralston Creek Segment (Phases I and II), and the Benton Street Interceptor and Storm Sewer. Element 5: Sludge Forcemain. This element includes the establishment of design criteria and routing for the sludge forcemain between the North Plant and South Plant. The Owner shall provide easement descriptions and any plans and specifications required to obtain permits necessary for construction. M&E shall provide design criteria, including specification of pipe size and material, recommended routing, and standards for installation. J fe% Revised 1/20/a9 CHAPTER ZBE AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS FOR THE OPERATION AND MAINTENANCE OF A UNIFIED WATER UTILITY SYSTEM AND A UNIFIED SANITARY SEWER SYSTEM WITNESSETH: WHEREAS, since prior to 1961, the cities of lcwa City and University Heights have been served by a single water utility system, which until 1961 was Prr\i\Y\ately owned; and WHEREAS, inSe\ptember of 1961, the City of Iowa City acquired the said water utility system, including all facilities and compone is thereof located within th cities of Iowa City and University Heights and WHEREAS, since Novemb r of 1961, Iowa City has genera d and distributed potable water to the res ants of Iowa City and Univ sity Heights through a water utility system w ch Includes wells an river Intakes, a water treatment plant, pumps, and s orage tanks loca ed in Iowa City, and water mains located in Iowa City and in Un ersity Heights, all of which facilities are owned by Iowa ty, aving either been purchased or constructed by Iowa City; and WHEREAS, since acquisition of he said &ter utility system, the City of Iowa City has been maint ning and re p\iring water utility system components within Universi y Heights, includidflj.'nsCi�ty ad pumps; and WHEREAS, since Drt to 1961, the City ohas, at separate sanitary sewer int connection points along the bo dories of Iowa City and University eights, accepted for Collection wast t+a ter generated by residents of iversity Heights, and has treated such wastewater at Iowa City's wast wwstar treatment plant; and �. WHEREAS, Iowa City's provision of water and sewer services to University Haig is has been the subject of various agreements, to wit As follows: IA) A sewage disposal contract dated July 29, 1951, 3�9 -2- (8) A wrier service contract dated November 8, 1961, covering Iowa City's provision of water services to the City of University Heights for a term of 30 years; and (C) A municipal services contract dated November 2, 1966, covering Iowa City's provision of a variety of municipal services to University He I ghts, including sewer services, superseding the ejrlier sewage disposal contract of July 1954, but excluding water syfvice; and WHEREAS; \given the high degree of interconnectlosl between the water distribution system In Iowa City and the water distribution system In University Heights, and given the expense and difficulty which University Heights would\\ne in acquiring and separating its water distribu- tion system frownsy, and In constructing Its own water generation and distributin University Heights, It is presently deemed to be infeasible ity Heights to acquire, construct, and operate a separate water tem; andWHEREAS, the me vices contract dated November 1966, providing for Iowa City's provision o/a variety of municipal services, including sewer services, to Univers)ty eights was cancelled by the City of Iowa City on January 13, 1916;,and WHEREAS, given the high degree of is erconnection between the Iowa City and University Heights sanitary sewer systems, and given the unavail- i ability of alternative means of wastewater treatment for University Heights, It is presently deemed to be infeaslEle for University Heights to separate said sanitary sewer systems, to sepa\r ely operate its sanitary sewer system, /And to obtain elsewhere or Prov l\d for the treatment of wastewater generated by Its residents; and / f WHEREAS, /th City of Iowa City is under mandate by the, Department of Natural Resources of the Stale of Iowa to complete th\construction i \ ! certain Improvements to its sanitary sewer system, including the rehabili- tation of Iowa City's existing wastewater treatment plant, the construc- tion of a new wastewater treatment plant and associated mains, and the construction and Improvement of certain Interceptor sewers, Including the f I 3 s�9 Benton Street Interceptor which carries a major portion of the wastewater generated by University Heights' residents: and WHEREAS, the parties hereto have been advised and do believe that It would be in their mutual best Interests to modify and renew the existing agreement for Iowa City's provision of water services to University Heights, and to Initiate a new agreement with respect to Iowa City's provision of sanitary sewer services to University Heights, all under a \single, long-term agreement creating a unified water system and a unified sanitary sewer system; and WHEREAS, this Agreement has been entered Into by and between the parties, pursuant .\t Chapter 28E of the Iowa Code providing for the joint exercise of municipal governmental powers in order to authorize Iowa City to provide watef utility service and sanitary sewer service to University Heights. \ NOW, THEREFORE, \1 considefation of the covenants and obligations herein made and undertaken, the City of Iowa City (hereinafter 'Iowa City') and the City of Univty Heights (hereinafter 'University Heights"), hereinafter collective jy referred to as "the parties," do hereby agree as follows: Part I • Jo ht Exercise of Powers Under Chapter 28E of the Code of Iowa to Establish a Unified Water Utility System and a Unified Sanitary Sewer \ 1. Pursuant to Chapter 28E of the198T\Code of Iowa, the parties do / hereby agree that the purpose of this Agreement is to jointly exercise theta respective powers to finance, construct, own, and operate certain public Improvements, to wit,\a rater utility system / for the generation and distribution of potabli\water to municipal residents, and a sanitary sewer system for the collection and treatment of wastewater generated by municipal residents. 2. The parties agree that the water generation and distribution facll ltles located within their respective jurisdictions shall 3 �� .a - hereafter be operated as a single unified water utility system, as provided in Part 11 hereof, and that the wastewater collection and treatment facilities located within their respective Jurisdictions shall hereafter be operated as a single unified sanitary sewer system, as provided in Part III hereof. 1. The parties agree that the design, construction, operation, main- tenance, and management of facilities comprising the unified water utility system shall be Jointly financed by the residents of Iowa City and University Heights through payment of uniform water use rates and charges provided in Part II Is reof, and that the design, instruction, operation, maintenance, nd management of facilities cc rising the unified sanitary s wer system shall be Jointly finan ed by the residents of Iowa ty and University Heights through payment0f uniform sewer use rat s as provided in Part III hereof. 4. The Parties agree that the City Manager of the City of Iowa City I shall be des gnated as the administrator for purposes of this Agreement, as p vided Section 28E.6 of the Code of Iowa, and that the City Manager hal administer and manage the operation of both the unified rater til tty system and the unified sanitary sewer.i system. 5. The parties a ee that t is Agreement shall be effective upon itsI I execution by both parties, 'is filing with the Secretary of State, i and Its r cording in the J nson County Recorder's Office, as providedbySection 28E.8 of th 1987 Code of Iowa, and It shall remain In effect until termination b the parties, or either of them, as here�fter provided In Part IV. Part 11 -/Operation and funding of the Unified Iliter Utility System 1. Grant of Authority and Acceptance. The City 'of University Heights does hereby grant unto the City of Iawa City the authority to operate within the present or future corporate limits of University Heights a ! unified water utility system; to act as the agent of University / Heights in -the operation thereof for the generation, storage and •S• distribution of potable water to University Heights for consumption by its residents; to maintain, operate, and extend, renew, remove and replace Iowa City's existing water mains, pipes and other water utility appurtenances and facilities within University Heights; to acquire, own, maintain, operate, renew, remove and replace additional plants and works and all necessary or desirable appurtenances thereto used or useful In said water utility system; and to enter upon, into, use and occupy the present and future streets, alleys, bridges, parks and other (public places and ways within the present and any future corporateItimits of University Heights for erect ng, constructing, Installing,\Inaintaining, renewing, removing, '%placing, relocating, repairing, ow,Ing and operating all necessary/facilities, including pipes, mains, cc nduits and appurtenances and appendages thereto for the production, c�op\eyance, storage, treatment, distribution, supply and sale of water; `end to charge and collect rates and charges for j water use and for \watermall if/sy services, all as hereinafter provided. \7 / The City of Iowa City does h\reby, accept said grant of authority, and hereby agrees to operatwater distribution system within University Netghts az girt unified water utility system; to generate Datable water and dis Ibute such water In University Heights for consumption by its resld nts In accordance with all State and federal requirements therefor; an to operate and administer the said unified water utility system, i Ming the assessment and collection of water use rates and wat utility charges, in a prudent, fair, and uniform manner in Iowa City and in University Heights, all as hereinafter provided. 2. Iowa City, agrees to generate water from wells and river Intakes In Iowa City, to treat water at Its water treatment plant In love City to make It suitable for human consumption, to store potable water for the/use of residents of Iowa City and University Heights, and to t?nsport potable water to University Heights and to distribute same to residents of University Heights through Its system of water tanks, pumps and mains. Iowa City agrees that In the operation of said unified water utility system, It will produce potable water meeting •6 - all regulations and requirements of the Federal Enviromental Protec- tion Agency (EDA) and Iowa Oepartment of Natural Resources (ONR) applicable to the generation, treatment, storage, and distribution thereof, and that it will generate, treat, store, transport, and distribute potable water in quantities sufficient to serve residents In both Iowa City and University Heights. J. Iowa City does hereby agree to operate and maintain the potable water generation, treatment, storage, pumping. transportation and distribu- tion facilities owned by Iowa City and located in either Iowa City or University��leights in a prudent, proper, and safe manner, and to preserve and protect said facilities to and for the benefit of the residents of \we City and University Heights. For purposes of this provision, mint ante shall include,r utine maintenance, repair and replacement of such facilities As determined necessary by the City of Iowa City. L. All excavations and ott work in connection with the opening and closing of streets and /l�'raon blic places by Iowa City shall be done in + workmanlike manner Irdance with the practices established by Iowa City in th� opeof the ores Hed water utility system. slhanever Iowa Ct/ty is abolay any mains or pipes in streets or other public places, it notify University Heights thereof and University Heights shallh Iowa City with the grade of such street or�ther public place, a d Iowa City shall lay its mains with respect to such grade. If therea ter University Heights shall change the grade of such street or other ub11c place, or otherwise make it necessary to raise or lower any mains or hydrants Installed therein by tow+ City, the cost thereof shall be,repaid by University Heights /to low+ City. In all other cases, the cost of opening and closing any streets or public places and repairing and repaving the same shall be borne by Iowa City as part of the cost of operating the unified water utility system. 5. University Heights hereby agrees to enact, simultaneously with Its execution of this Agreement, Ordinance No. , establishing j procedures and regulations for the Provision of water utility service 3 sF� to its residents; establishing rates and Charges for water use by and for water utility services to Its residents; establishing regulations and procedures for the installation and maintenance of meters for the measurement of water usage by University Heights residents and for the billing of water rates and charges; and establishing regulations, construction standards, and procedures far extensions and connections to the water utility system in University Heights. University Heights hereby authorizes Iowa City: (1) to act as its exclusive dgin the enforcement of the regulations contained in said Ordinance; (2) to act as Its exclusive agent in the determination of all matters under said Ordinance requiring the exercise of Judgment or disc etion in the operation and maintenance of said system, including ll such discretionary determinations therein reserved to the city council or city clerk of Univers i ty Heights, but excluding the setting of rates and ch/fees d (0) to act as Its exclusive agent in the cold action of alcharges provided In Article III of said Ordinance forration and maintenance of said system. University\ Heights ato maintain said Ordinance in effect until termiq+tto/hut greement; (2) not to amend or modify said Ordinance\C1 tthe prior written consent of the City Council of Iowa City /k1��d of the DNR; (3) to make such reasonable amendments to said Ord Z. ce as may from time to time be suggested and enacted by Iowa/City; and (4) to make amendments as required by the EPA or Iowa City accepts said authorize ion, and agrees to enforce and administer Ordinance No. for and on behalf of University Heights as its exclusive agent. 6. University Heights agrees that it will, pd suant to said Ordinance, Impose the same water rates and charges upon its residents as are presently reflected In Chapters 37 and 72.1 of the Code of Ordinances of,[ a City of Iowa City and as are presently charged to residents of owe City. University Heights hereby authorizes the City of Iowa City to act as Its agent in the collection of said water rates and charges, and to retain the moneys so collected In consideration for Iowa City's provision of water utility service to the residents of 3 q-9 University Heights. University Heights acknowledges and agrees that the Said water rates and charges presently In effect in Iowa City and to be imposed in University Heights are fair and reasonable, and have been calculated in an amount necessary to defray the operating costs and capital costs of the unified water utility system, including the retirement of the bonded indebtedness undertaken by Iowa City to finance improvements to said system. University Heights acknowledges and agrees that it is fair and appropriate for its residents to share It e capital costs for said improvements inasmuch as University H fights and its residents are part of said unified water utility system and derive substantial benefit therefrom. 7. The parties agree that Iowa City shall operate and administer the water utility system as an enterprise separate and distinct from all other activ(tits of the City of Iowa City, and that the operation, maintenance, and administration of the said water utility enterprise shall be (undid solely from revenues generated from water rates and charges Collette in Iowa City and University Heights pursuant to this Agreement. The parties further agree that the following categories of ex De ss\e shall be crag geable as costs of operation, maintenance, and adm' nistrati on the water utility enterprise: (a) general management\an9/administration, including legal services; (b) system me, ntenanc( co ts, Including but not limited to Inspec- tion, routine �rtenanc , repair, and replacement; (c) system opt'ating costs, inclIng but not limited to energy, labor, aterlal s, services, an ee\pmentl f ancial administration, Includlpg accounting. billing, collation, financial planning for Investments and capital debt; and (e) tort liability costs, including the costs of Insurance, defense I and settlement of claims and lawsuits, and tort judgments resulting from operation of the unified water utility system. I j f i I 3f? S. The parties agree that Iowa City's water rates and charges shall be subject to periodic review. University Heights acknowledges and agrees that it may, during the term of this Agreement, be necessary for Iowa City to (a) incur Indebtedness to construct other improve- ments to the unified water utility system, Including portions thereof located In University Heights, and (b) Increase the annual budget for the unified water utility system in order to cover increased costs for operation, maintenance, and administration. University yergl,ts agrees that upon the occurrence of either of said events, to`a City may propose an increase In the water rates and charges applicable in both Iowa City and University Heights. Iowa City shall give notice of such proposal to Univvarsity Heights prior to formal consideration thereof by the Ci/anxplanation til of Iowa City and at least 90 days prior to the intended ee date thereof. Such notification shall include cost data and of the need or justification for the proposed inin water rates and charges. University Heights shall be required/,to enact an ordinance effecting the same increase in waterrrates dd charges upon enactment of those increases in water rates and chars by Iowa City, and to provide for the same effective date f\r/said Increases as Iowa City, unless University Heights notifies {owe City in writing within 60 days of receipt of the notice, s h\\inabove provided, that It does not intend to enact such an i4curease in\water rates and charges. If University Heights/fails to enact such increase in water rates and charges by ordinance effective simultaneously with that enacted by Iowa City, University Heights shall PAY to lows City, from its general fund of other appropriate city fund, the difference'between the avenue generated under the water rates and charges in effect In University Heights and the revenue which would have been generated under theXncreased rates and charges enacted by Iowa City, plus a 10% surcharge upon said difference for the additional costs of administration which will be incurred by Iowa City In calculating, billing, and collecting water rates and charges under a dual -rate 301 -10 - system. University Heights' obligation to pay said difference shall commence upon the effective date of Iowa City's ordinance increasing water rates and charges, and shall continue until the effective date of the University Heights ordinance which enacts the increased rates and charges enacted by Iowa City. Iowa City shall calculate and bill University Heights for said differential payment bi-monthly on the basis of total water consumption in University Heights during the preceding two-month period. Total water consumption means the aggregate cubic foot total of all water used by University Heights residents, as measured by meters installed by the City of Iowa City. University Heights shall pay said differe` tial payments to Iowa City bi-monthly within 'days of receipt of the bill thereof. University Heights agrees tha/resutSon, City s unable to collect any delinquent water service accouvers y Heights by discontinuance of water servtce\\o such users,r ity Heights city council shall, at Iowa City's request, adoptution, and the city clerk shall certify, said delinq\uent amountagainst the properties and shall file same with the Lunty audiversity Heights further agrees to promptly forward to Idea Cityfor delinquent accounts recovered by use of such lien pro eduuje. if University Heights declines to certify such delinquent amounts d the county auditor as liens upon the properties served, it shall pay s ch delinquent amounts to Iowa City within 60 days of its decision not,to cer ify said amounts. 9. Iowa City agrees /in connection\\with all extensions of its mains to install fire hydrants as npuested by Unt \rsity Heights provided that, unless Iowa City expressly agrees otherwise, not more than one fire hydrant shall be required to be installed an each four hundred feet of extension. X11 fire hydrants hereafter installed shall be of six inch site, and shall meet the then/existing standards of the City of Iowa City. University Heights ,great to pay low, City as full compensation for the use of each existing ,lid future fire hydrant now or hereinafter installed by Iowa City so long as the same remains in use, and as full compensation for any water used by University Heights from any such hydrant for fire protection or fire prevention, 3 �9 11 - the sum of S50.00 per year for each such fire hydrant, said payment to be paid in two equal semi-annual Installments on the first day of May and on the first day of November In each year. Ouring the terms of this contract, University Heights, or its contract agent for the provision of fire protection service, shall at all times have full and unobstructed use of fire hydrants now or hereinafter installed by Iowa City, but only for fire protection or fire prevention purposes. Iowa City agrees to periodically inspect and operate said hydrants to determine if hey are operating properly. University Heights agrees that it shall also periodically Inspect said fire h/ydnts and notify Iowa C(ty of any damaged, defective qr inoperativeants. 10. Iowa City agrees at all times to defend indemnify, and hold University Heights harmless from all liabilf y, loss, cast, damage or expense res Ring from the opening or osing of streets or other public place by Iowa City as well as f om the presence of Its water mains or othe water utility facil ies in such streets and public places and from the manner of oper tion and maintenance by Iowa City of its said m ins and other facilities. Iowa City shall at all times, subject to he capacit of its plant and facilities, endeavor to furnish an a quate and uninterrupted supply of water to University Heights a d is inhabitants and to maintain pressure required for fire Prot ction and prevention; provided, however, that Iowa City shad not h�li Dle for any interruption of service or failure of pressure or upply of water due to accident or causes beyond the re+savable contro of Iowa City, and no such interruption shall constitute a breach of his Contract provided Iowa City shall use due diligence to restore ser Ice within a reasonable time. Part III - Ope/ tion and Funding of the ified Sanitary Sewer System 1. Grant of Authority and Acceptance. T IS City of University Heights does hereby grant unto the City of Iowa City the authority to operate L a unified sanitary sewer system in University Heights, to act as the agent of University Heights In the operation thereof for the collec- tion and treatment of wastewater generated in University Heights or by its residents, to provide sanitary sewer maintenance services •12 - within University Heights. to enter upon city streets and into City facilities In University Heights for purposes of maintenance, operation, and administration of said unified sanitary sewer system, and to charge and collect rates and charges for sewer use and for sewer services, all as hereinafter provided. The City of Iowa City does hereby accept said grant of authority, and hereby agrees to operate the sanitary sewer system within University Heights as part of a unified sanitary sewer system, to collect and accept wastewater generated in University Heights or by its resi nts, to transport such wastewater to and provide treatment thereo at Iowa City's wastewater treatment plant or plants In accordant with all State and Federal requirements therefor, and to operate and administer the said unified sanitary sewe system, including th\aassessment and collection of sewer use ra s and sewer service charges) In a prudent, fair, and un/prided. er in Iowa City and in Universit\ma' ts, all as hereinafte 2. Iowa City agreereceive and ecce t wastewater generated by University Heigsilents, and collected In University Heights sanitary sewers,manholes situated on or near the common boundaries of Iy and University Heights, which manholes are identified on thma � attached hereto as ExhlDit A, Said manholes shall erbe onsidered As the points of interconnec- tion between they sewe systems of Iowa City and University Heights, and shused to d ine the respective jurisdictions of the parties for/s of this Ag eement. 7. Iowa City' agrees to collect wastew ter generated In University Heights/at the said points of inter nnection, and to thereafter trraans ort said wastewater through its s tem of sanitary sewers, wins, and interceptors for treatment a Iowa City's wastewater treatment plant or plants, now existing or he\ alter constructed. e. Iowa City agrees that the wastewater treatment provided shall meet all present and future requirements Imposed on Iowa City by the Federal Environmental Protection Agency (hereinafter "EPA") or the -18 - law& Department of Natural Resources (hereinafter "DNR") for all wastewater generated by the residents and originating within the corporate limits of University Heights. In performance of this requirement, the parties acknowledge and agree that Iowa City is presently under mandate by the Iowa Department of Natural Resources to complete the plan of wastewater collection and treatment improvements Identified in Exhibit B. It is further acknowledged and agreed that as part of said plan of improvements, Iowa City has procured the design, and DNR approval of the design, for the Benton Street Sanitary Interceptor Sewer Project, which project involves the reconstruction of a major sewer serving University Heights. It is further acknowledged and agreed that Iowa City has sold $18.95 1,Ilion of its sewer revenue bonds to finan a the construction of said plan of improvements, including th Banton Street Sanitary Interceptor Sewer Project, and that Iowa Ity is under DNR mandate to award a bid and commence construction on said project by Yarch 15, 1989. In cons ideratiof the venants and obligations herein made and undertaken by Uni ersity ights, Iowa City does hereby agree to acquire the me ary properties and property interests and to complete the constru ion of said plan of improvements, including the Benton Street S ita Interceptor Sewer Project, to and for the mutual benefit Univer ity Heights and Iowa City and as mandated by the DHA. S. Iowa Cl,ty does hereby agreto operate and maintain the sanitary /benefit `/wastewater collection) ped wastewater treatment facilities Id in or owned by Iowa C(ty 1n a Drudent. proper, and safe , and to preserve and protect \1riid facilities to and for the o/ the residents of Iowa Citysend University Heights. For es of this provision, maintenance shall include routine maintenance, repair and replacement of such facilities as determined necessary by the City of Iowa City. 6. Iowa City does hereby agree to operate and provide routine main- tenance services for sanitary sewer (wastewater collection) facili- 3 V-1 8 -la - ties owned by and located in University Heights, as hereafter provided. For purposes of this provision, routine maintenance means and includes periodic inspection of sanitary sewer manholes to determine if said sewers are operating properly, and periodic -jetting- or "rodding" of sanitary sewers, either according to a predetermined schedule established pursuant to Iowa City's sewer administration policy, or as determined necessary pursuant to citizen complaints or requests. Routine maintenance does not mean or include the repair or replacement of sanitary sewers located in, owned by, or under the jurisdiction of University Heights. The partiesagree that University He ghts shall retain primary responsibility., for the inspection of it( sanitary sewers to determine w the structural condition and de gn adequacy thereof, and for the repair and replacement of defec ve or improperly designed sanitary sewers located In, owned by, or under the jurisdiction of University Heights. University neigh or/ agrees to maintain its sanitary sewers system in accordance/\w} th all applicable State of Iowa and Federal regulations, andin a" rel\ nably good condition permitting safe and I efficient operat thereof. For purposes of this provision, i sanitary sewer which real ire routine maintenance (rodding or ! jetting) more than semi-.ont\hy in order to function properly shall be considfid substandard and in need of repair or replacement. Iowa/City agrees that it will repgrt to University Heights such defective structural conditions or in roper design as its agents or mDloyees may observe in the ordinary cc rse of their performance of Iowa City's operation and routine mainten nce obligations; provided, � however, that Iowa C1 tyis not hereby under t.klnq to provide Dro(es• slonal engineering or inspection services to\ etermine the structural / condition or design ado awcy of sanitary seers located In, owned 6y, or under the jurisdiction of University Heights.' 7. University Heights hereby releases and agrees to defend, indemnify, i and hold harmless the City Of Iowa City, its officers, agents, and employees from and against any end all claims, suits, actions, debts, I damages, costs, charges and expenses, including court costs and V �' .is - attorney fees, and against all liability, losses, and damages of any nature arising from the defective condition or inadequate design of University Heights' sanitary sewer system, or arising from the failure of Iowa City, its officers, agents, or employees to discover such defective condition or inadequate design during the course of operation and routine maintenance by Iowa City, but excluding such defects or other conditions, caused by the operation and routine maintenance activities of Iowa City, which result in damage to the person or property of residents of University Heights or other third lties to this Agreement. University Heights further releases and ag ees to defend, indemnify, and hold harmless the City of Iowa City, its ficers, agents, and employees, fromm liability for damage to Univer\s�ty Heights' sanitary sewer systfm occurring during the course of or as\ result of Iowa City's D formance of operation and routine maintenance activities thereo , and for consequential damages to other property, structures or facilities mored by University Heights, unless it /Ssown that such damage was occasioned by the sole negligence o lty, its officers, agents and employees,and did not In any way from the defective condition or inadequate design of Univers ty eights' sanitary sewer system. This provision still have no fo/rce an affect as to those portions of the University.,, Heights saryft/ary sewer system hereafter accepted by Iowa City pursuant jo paragraph 8. i;, 8. Darag aphs 6 and 7 to the con rary notwithstanding, Iowa City hereby agr es to accept resDonsi bil y for the inspection, repair and r placement of the University \tion tary sewer system and to �ecept responsibility for its nd design, as hereafterprovided. Iowa City agrees to diction of the University Heights sanitary sewer upon compthe following terms and conditions: (a) University Heights shall cause its City Engineer to undertake a survey of the University Heights sanitary sewer system to determine the following: (1) All locations on each sanitary sewer win where sanitary sewer manholes are more than 400 feet apart (substandard sewer design); { t 3�9 .16- (2) All locations where there Is no manhole on the upstream end of a sanitary sewer main (substandard sewer design); (1) All locations where sanitary sewer mains are of less than 8' in diameter (substandard sewer design); (A) All locations where sanitary sewer mains are constructed of either nonreinforced concrete or "Orangeburg" pipe `\\ (substandard materials); \ (5) The condition of each manhole, including the lid, ring, walls, and bottoms, and the design -'and materials used in walls, construction of each manhole; (6) All locations at which a Saan Cary sewer service drop into A sanj Lary sewer manhole f in excess of 2 feet above the bott of the manhole' and (1) All I tions a which storm sewer inlets are cnnnected to a sanit sewyr, or at which there is a cross connection betwten a tddrrm sewer and the sanitary sewer system. In making saidSurue , the University Heights City Engineer shall review all appropriate p ats and subdivision documents relating to the University/ Heights s nitary sewer system, shall conduct a / r physical inspection of each anitary sewer manhole in University Heights, apd shall, where recess ry, ascertain construction materials II used in c'nstructing sewers by cont t with the developers, plumbers, or cont �ctors who constructed or m\iiTln said sewers in University — Heights. ,\ (b) �o�completion of said survey, the University Heights City Engineer shall prepare + report detailing all locations and conditions is provided in (a) above, and shall prepare maps or plats of the entire University Heights sanitary sewer system, showing the location of all sewer mainsacing between same, and all cross , ail manholes and Cha sp 1 i 3�9 -IT - connections between storm sewer inlets or storm sewers and the sanitary sewer system, The University Heights City Engineer shall promptly deliver the completed report and said maps Or Plats to the Iowa City Public Works Director. (c) Upon approval and acceptance of said report and said maps or plats by Iowa City's public Works Director, the City Council of University Heights shall by resolution approve and accept said report and said maps or Plats. Upon the adoption of said resolution, the University Heights sanitary sewer system shall be deemed accepted by Iowa City for pLrposes of this Agreement. 9. Upon low, City's acceptance of Universi Heights' sanitary sewer system, Iowa City shall thereafter oper/aj6 and maintain the sanitary sewer (wastewater collection) system located in and owned by University Heights in a prudent, roper, and safe manner, and shall preserve and pro\ect said 3 stem to and for the benefit of the residents of University He��ightts, except as hereinafter provided. For purposes of this pro`i )dn, operation and maintenance shall mean and include routine maintenance (as defined in paragraph 6 above), repair, and replacement of such facilities as determined necessary by the City of Iowa Ity. Iowa City further agrees that upon its acceptance of the Univer t\ we Heights sanitary sewer system it will thereafter: (a) acgept responsibility for the continuing operating condition, z ructus. Integrity and d sign adequacy of said system, periodically inspect said sy�tem to determine the necessity for repair or replacement and to ,assure the adequacy thereof in accordance with Iowa City's sewer administration policy, (c) secure the design and construction of improvements necessary to assure the proper function and design of said system, and (d) finance the Construction of such improvements from sewer revenues generated as hereafter Provided. i 3�9 , The parties agree that the NabiI ity. repair and rep l agement Obiiga- Clans undertaken by Iowa City pursuant to this paragraph shall not apply to those portions of the University Heights sanitary sewer system exhibiting either substandard sewer design or constructed of substandard materials, as per paragraph B(a) above, regardless whether those substandard conditions are identified in the report of the University Heights City Engineer pursuant to paragraph B(b), or are thereafter discovered. UrQverslty Heights further agrees that it will, within one year of it ss a ecu tion of this Agreement, undertake a project to provide for the con t\ruct ion of as many additional manholes�as are necessary (1) so that �e,(�hole spacing throughout its santtary sewer system shall not exceed 40feet, and (2) so that the aZill be a manhole on the upstream and of'tach sewer main. 10. University Heights+grees the / it will not allow extensions or connections to Its SanCary se er system without the prior consent of the city manager of .t a 0 rt". Until acceptance of said system by Iowa City. University fights she 11 process all such proposed expansions, extension�nd connections for Its review and approval and for review and approval b Iowa City, and shall inspect the work done In connection therewith. Upon Iowa City's acceptance of said system, Iowa City shall act as he agent of University Heights in procassi ng �il such or r review and approval, and in inspacting,the work done in Corn ectl n therewith. 11. Exce�ps�fcr unavoidable and unintentional infiltration and Inflow, and efllSting crass-connections, University eights agrees not to here- I,ter permit storm water to enter the UnIersity Heights sanitary sewer system, and further agrees not to hereafter permit the Cannot- tion of its storm sewer Inlets to Its sanitary sewer system, or to permit any cross-connections between its storm sewer system and Its sanitary sewer system. 3 �9 -19- 12. University Heights agrees to enact, simultaneously with its execution of this Agreement, Ordinance No. establishing procedures and regulations for the provision of sanitary sewer service to its residents; establishing regulations regarding the use of sanitary sewers, the strength and content of wastewater and effluents discharged thereto, and the necessity for pre-treatment facilities; establishing rates and charges for sewer use by and for sewer services provided to its residents; and establishing regula- tions, construction standards and procedures for extensions and connections to its sanitary sewer system. Universit�i, Heights hereby authorizes Iowa City: (1) to act as its exclusive agnt in the enforcement of the regulations contained in said Ordina' (2) to act as its exclusive agent the deter- mination of all matters under said Ordinance reoul ris9 the exercise of judgment or dtsc\etion In the operation an maintenance of said system, including all such discretionary determinations therein reserved to the cit\\ council, city erk, or city engineer of University Heights, but evclud Ing the etting of rates and charges; \ i and (3) to act as its ex5\lusive�a ent In the collection of all fees and charges provided in Article III of said Ordinance for the operation and maintenance of/�aid system University Heights agrees (1) o maintain said Ordinance In effect until termination of this Agreeme t; (2) not to amend or modify said Ordinance wlthau the Drtor writ n consent of the City Council of Iowa City arid f the ONA; (3) to ma a such reasonable amendments to said Ordinance as may from time to me be suggested and enacted by Iowa City: and (A) to make amendments a required by the EPA or the Iowa City accepts said authorization, and agrees to enforce and administer Ordinance No. for and on behalf of University Heights as its exclusive agent. 13. University Heights agrees that it will, pursuant to said Ordinance, ' i impose the same sewer rates and charges upon its residents as are ( 3�F� -20 - presently reflected in Chapters 33 and 32.1 of the Code of Ordinances of the City of Iowa City and as are presently charged to residents of Iowa City. University Heights hereby authorizes the City of Iowa City to act as its agent in the collection of said sewer rates and charges, and to retain the moneys so collected in consideration for Iowa City's provision of sanitary sewer service to the residents of University Heights. University Heights acknowledges and agrees that the said sewer rates and charges presently in effect in Iowa City and to be imposed in University Heights are fair and reasonable, and have been c\1nas ed in an amount necessary to defray the operating costs and caosts of the unified sanitary sewer system, including the retirethe banded Indebtedness undertaken by Iowa City to financplan of improvements set forth in Exhibit 8 University Heightledges and agrees that it is fair /a9d appropriate for its reo share in the said capital codts for said Dian of improvInas uch as University Heights Ind its residents are part o un fied sanitary sewer sy em and derive substantial Oene/ICrom. la. The parties agree that Iowa Cit r shall operate and administer the united sanitary sewer s tem s an enterprise separate and distinct from all other activities f [he City of Iowa City, and that the it operation, maI fatenca, administration of said system shall be funded spiel from rev. ues y generated from sewer rates and charges � I: collected in Iowa it, and\niverstty Heights pursuant to this Agreement. The patties further agree that the following categoriesii of expense she l/be chargeable as\ costs of operation, maintenance, �1 and administration of the unified sapItary sewer system: (a) genizmanagement and administration, including legal services; (b) /system maintenance costs, Including hLt not limited to inspec- tion, routine maintenance, repair and replacement; (c) system operating costs, including but i�ot limited to energy, labor, materials, services, and equipment; 1 { 3VI -21- (d) financial administration, including accounting, billing, collection, financial planning for investments and capital debt; (e) tort liability costs, including the costs of insurance, defense and settlement of claims and lawsuits, and tort judgments resulting from operation of the unified water utility system. 15. The parties agree that Iowa City's sewer rates and charges shall be subj ct to periodic review. University Heights acknowledges and agree that it may, during the term of this Agreement, be necessary for to City to (a) incur further indebtedness to complete the construc ion of the Plan of Improvements set forth In Exhibit B, (b) incur Indebtedness to construct other improvements to the unified sanitary sewer system, including portions thereof located In University H\}ghts If and when said system is accepUA by Iowa City pursuant to p ragraph B, and (c) increase the an al budget for the unified sanitary\sewer system In order to cover increased costs for operation, maintenance, and administration. University Heights agrees that upon Ka occurrence of any of said events, Iowa City may \propose an /1 kreasa in the sewer rates and charges applicable I both to/qi City and University Heights. Iowa City shall give notice f su If proposal to University Heights prior to formal consideratt0 t ereof by the City Council of Iowa City and at least 90 days prior to the intended effective date thereof. Such notificatipn shallIncludf\cost data and an explanation of the need or justifiutlp for the\ proposed increase to sewer rates and charges. / \ Univer ity Heights shall be riquired to enact an ordinance affecting th s+me lncrease 1n sewer rate\and charge upon enactment of those i creases in sewer rates and charges by Iowa City, and to provide for the same effective date for said, Increases as Iowa City, unless University Heights notifies Iowa City In writing within 60 days of receipt of the notice, as hereinabove provided, that it does not Intend to enact an Increase In sewer rates and charges. i 309 -22- If University Heights falls to enact such Increase In sewer rates and charges by ordinance effective simultaneously with that enacted by Iowa City, University Heights shall pay to Iowa City, from its general fund or other appropriate city fund, the difference between the revenue generated under the sewer rates and charges in effect in University Heights and the revenue which would have been generated under the Increased rates and charges enacted by Iowa City plus a 10% surcharge upon said difference for the additional costs of administration which will be/incurred by Iowa City in Calc lating, billing, and collecting sewer /r t/as and charges under a dual -rate system. University Heights' oblige ion to pay said difference shall coamenc upon the effective date of Io a City's ordinance increasing sewer rates and charges, and shall Conti ue until the effective date of the University Neghts ordinance whit enacts the increased rates and charges enacted by Iowa City. Iowa City shall calculate and bill University Heights for\aid differ(tial payment bi-monthly on the basis of total water consumption In University Heights during the preceding two- month period. Totalwater c'onsum/p Cion means the aggregate cubic foot total of all water used by University Heights residents, as measured by meters installed by the City of Iowa City. University Heights shall pay said differential payments to Iowa City\onthly within 3D days of receipt of the bill therefore. / University Heights agrees that if Iowa'City is unable to collect any delinquent sewer service accounts in Universty Heights by discontinuance r of water and/or sewer service to such users, he University Heights city council shall, at Iowa City's request, adopt by solution, and the city clerk shall certi{y, said delinquent amounts \cs liens against the properties served �nd shall file same with the county auditor. University Heights further agrees to promptly forward to low City any moneys for deltnqumt ac is recovered by use of such lien procedure. If University Heights declines to certify such delinquent amounts to the county auditor as liens upon the properties served, it shall pay such delinquent amounts to Iowa City within 6D days of its decision not to certify said amounts. _N_ a I 3sF9 .20- 15. University Heights agrees that before any new or existing industrial user, or process, or business, whose sewage exceeds or might exceed the normal domestic wastewater strength as defined herein, and whose total discharge into the sanitary sewer system equals or exceeds 50,0o0 gallons per day, may be connected to the University Heights sanitary sewer system, Iowa City's consent to said connection must be obtained. Owa City shall not withhold such consent unreasonably. Prior to 4onstruction of any new Industry ori ajar remodeling of an existing fa\Q\ility, University Heights shall require said industry to submit Its plans and specifications for/its pre-treatment and samDl Ing faci\idpecifications es to Iowa City for review. There shall accompany said plans anthe in bstry's estimate of the volume and strength of Industrial wastewater. The estimate shall list suspended solids, BAD., grease /and any other significant organic or Inorganic material •h ich will bL contained in the industry's waste- water discharge. The\ aid plans and specifications shall be approved or disapproved within t irty (00) days from the receipt of all the Information listed abO . The said industries shall not he required to provide more pro-/t/u ant than Is required by applicable Federal law, rules and regu�ttons of Iowa City ordinances. In the event f disagreemept by the parties as to the strength and flaw of sew a from any Indus\' rial user, there shall be a sampling of the waste Ater on the basis f a 24-hour composite sample which may be verl led by a three (o) d Y sample using in automatic sampling devi/5 approved by Iowa City. Iowa City shall prescribe the minimum fat for the cost of treatment f any, to be charged such user; p ovided, however, that said 1fees for treatment to be charged to /industrial users In University Hei1ghts shall be no less than the treatment fees charged by Iowa Cliy to similar users located in Iowa City, and provided that standards of use applied to said user by Iowa City shall be no different than the standards applied by Iowa City to similar users located in Iowa City. Such industrial users shall also be subject to any special conditions of the Federal Government that apply to an industrial user of Iowa City's wastewater facilities; State or Federal guidelines for cost allocation, including capital, 43 VO -2a - operational and replacement costs; and guidelines or rules that may be established by Iowa City relative to industrial users, provided said guidelines are applied uniformly within the two cities, 17. All wastes other than domestic wastewater originating in University Heights shall be in compliance with all applicable pre-treatment regglrements of the United States Environmental Protection Agency and [h� Iowa Department of Natural Resources and the City of Iowa City. Suc pre-treatment requirements may include, but are not limited to, oils toxic metals, biocides, dissolved salts, acids, and alkalies or any ofQ\er materials that may violate applicable sludge disposal, stream, or effluent standards. University Heights agrees that, in the evenq the content of the wastewater received from University Heights ex Beds normal dom/entthat rength wastewater and such excesses cannot be t aced to the sosources, University Heights shall construct s ch pre-treatcilities that will result in a discharge of ormal domestgth wastewater if requested by Iowa i City to do so In the a such pre-treatment facilities are not under const uction thin six (b) months after written notice by Iowa City and c D1e�G d within of ghteen (18) months thereafter, Iowa City shall have t e Fight to charge University Heights residents on the same basis as ignificant industrial users. Any materia/tlhts Ich to Id damage the sanitary sewers,, lift stations or the waste,treatm nt Plant process shall be prohibited, and Unlversitshe 1 be responsible for the expense of any and all repoArs occasioned to reby. The sampling of the sewage shall be on the Buis of a 24-hour omposite sample which may be verified by a three 43) day sample using owe City's sampling device. University Heights agrees to permit I a City to Install a sampling device to collect necessary samples upon prior notification. law& City shall be responsible `for the enforcement of such pre- treatment regulations In University Heights from and after its acceptance of the University Heights sanitary sewer system as provided in paragraph B above, and may thereafter require users in University Heights to install pre-treatment facilities as provided by 30? -25 - applicable regulations of the EPA, ORR. and/or City of Iowa City. University Heights agrees to enact ordinances as necessary to allow enforcement by Iowa City of said regulations in University Heights. 19. Iowa City and University Heights agree to adopt all necessary ordinances and such other additional rules and regulations as may be rrth, d by the EPA or the DHA for the proper control and operation ounified sanitary sewer system, Including wastewater treatment facilities. Such ordinances shall also establish rates and charges fl1 residential and industrial users which are In accordance with +ppllcable Federal guidelines. In addition, such ordinances (and additional rules and regulations as may be necessary) shall control the c\r(Structipn, operation and maintenance of the sanitary sewers and treatment facilities so they will meet or exceed EDA and DNR guidelines. 20. There shall �e a mutual /ta ( facilities mentioned in this agreement at a time eithrequest such inspection. If, as a result of �spch inspecdetermined by either party that there is a discrepancy d this discrepancy cannot be resolved by the p\rties, discrepancy or dispute shall be resolved as provided\nParaph 2. Part IV - General Provisi 1. Term of This Agreement, and Iowa City's deligation to provide water utility service and sanitary sewer serviip\a to University Heights as herein provid�ed/ shall Carminate on Janu ry 1, 2019, unless renewed as provl Aed in paragraph 4. 1 Resolution - Arbitration. The parties agree that any dispute arising between them In the application or Interpretation of this Agreement may by mutual agreement be submitted to arbitration. Any request for arbitration i 301 -26 - from one party to the other must be in writing. Upon agreement to suWt to arbitration, the parties shall sign and acknowledge a written agreement specifying which issues are to be submitted to the arbitrate and the arbitration proceeding shall be limited to such issues.Arbitration shall be binding only if so agreed by the parties n advance thereof. Arbitration shall be conducted as follows: (a) If the panties agree, there may be one arbitrator; otherwise there shall be three, one named to writing by each party to this Contract and he third chosen by these two arbitrators. if they fail to elect a third within fifpaen days, then such arbitrator shall a chosen by the presidi?officer of the state or county bar asap Inti on nearest to th location of the work. Should the Darty requesting arbit ation fail to name an arbitrator within to days of Its de and, its right to arbitra- tion shall lapse. Should the other party fail to choose an arbitrator within the s id ten d ys, then such presiding officer shall appoint such arbi rotor Should either party refuse or neglect to supply the orb tr tors with any papers or information demanded In writing, t arbitrators are empowered by both parties to proceed ea pq te. (b) No one shall bequa Iliad to pct as an arbitrator for whom serving in such A role wau l\li\acreate a conflict of interest. Each arbitrator selected shall a qualified by experience and knowledge of the work Involved in\he matter to be submitted to (c) If theY be one arbitrator, the aw \d shall be binding; 1f three', ;the award of any two shall \\e binding and may be Is lathed only for fraud or mistake. Such award shall be a condition precedent to any right of legal action. (d) The arbitrators, 1f they deem that the case demands it, are authorized to award to the party whose contention is sustained -2T - such sums as they deem proper for the time, expanse and trouble incident to the arbitration and, if the arbitration was taken without reasonable cause, damages for delay. The costs of arbitration shall be shared equally by the parties. The award of the arbitrators shall be in writing and it shall not be open to the objection on account of the fom of the proceeding or the award. 0. Declaratign of Default and Notice; Remedies Upon Default. In the eve tt that either party determines that the other has defaulted in the performance of its obligations he @under, the aggrieved party Inay declare that default has occurred nd give notice thereof to the dee aulting party. Notice of defaul shall be given in writing, shall spe ify the nature of the defaul and the provision of the Agreement involv'd, and shall specify wh action 1s required of the defaulting party\F\o correct the de ault. The defaulting party shall have 70 days fro ry the date of Its receipt of the notice of default to correct the \\\ddd fault. at the end of said 70 -day period the default has not, in th op ion of the aggrieved party, been corrected, that party me thereupon pursue all lawful remedies, including but not lFht�h to, an action to declare the termination of this Agreement, an for s ecific performance thereof, an action for damages for brpereof, ran action for alternative relief. 4. Renewal. Th Agreement shall au omatically renew for additional periods o ten years, unless aithe party shall give notice to the 0therrv/m the form of a written resol tion of the city council, of its decision to terminate the Agra ent on the tomination date. Zuch notice shall not be effective unl\ s delivered to the other party at least I80 days prior to the termination date. S. Effect of Termination or Non -Renewal. In the event that this agreement is terminated as provided In paragraph 7 above or In the event that this Agreement Is not renewed as provided in paragraph 4 I -28 - above, the parties agree that Iowa City shall be obligated to provide water utility service and sanitary sewer service, as herein provided in parts II and 111, for not more than two years after termination occurs or is judicially declared, during which time University Heights shall be required (1) to enact or continue in effect the same rates and charges for such services as are in effect in Iowa City, and to authorize Iowa City to collect those rates and charges from University Heights residents, and (2) to enact or continue in effect pre-tr�4tment ordinances and to authorize Iowa City to enforce same in University Heights. During said two-year period, Iowa City shall be required\!o perform only routine maintenance an said systems, and University Heigh s shall be responsible for/all repair and replacement thereof. Thereafter, (a) Iowa k\t Vhtitled be entitled t cap its water distri- bution mains in Unlver' Heights; (b) Un ersity Heights shall not make use of any of suchains unle and until It has completed the purchase of the aater di ribution system in University Heights from Iowa Ciich rchase shall be completed in accordance with the Drs o Section 472.46 of the 1987 Code of Iowa; (c) Iowa City shantitled to plug sanitary sewers from University Heights at is of interconnection shown on Exhibit A; and (d) Uni wrslty Hs all assume jurisdiction and control of the sanitary sewer system in \University Heights and all respon- sibility for the treatment of wastewater generated in University Heights. 6. For purpose�of this Agreement, the To lowing terms shall have the following meanings: (1) -Normal Strength Domestic Wastewater" me s sewage which has no jmore than 750 parts Der million of s spended solids and the /five-day 8.0.0. does not exceed 300 Darts. per motion. The grease content shall not exceed 700 Darts per million. (2) 'Significant Industrial User' means any person, firm, or corporation owning, and Includes the occupants of, any land, i -29 - parcel of real estate or buildings where waste is produced which is discharged into the sewer system and which: (a) Has an Industrial waste discharge of fifty (50) thousand gallons of eouivalent normal domestic waste, or (b) Has an industrial waste discharge greater than 5% of the flow to the treatment plant, (c) Has, In Its waste, a toxic pollutant in amounts as defined in standards issued under Section 307 of the Federal Water \ pollution Control Act Amendments of 1972, or /' (d) )y found by Iowa City or the DWR to have significant impact, either singularly or in c bination with other cont\tbuting indus/ndustrial eir eatment works or upon the Rua\andignificant ffhe reatment works. (3) "Sewer Use"one and Includes residential contributorsrial users, as defined in Chapter 33 odes of the City of Iowa City, or successorns 7. References herein to pWtic government shall/I,,.Ir an References to Par or Provisions of he Code of mean and include successor I or agencies of the Federal or State Include the successor agencies thereof. 1 tons of the Iowa Code or to particular rd ,anus of the City of Iowa City shall rvis ons thereof. D. This Agreement, upon Its effective to, replaces and hereby voids and, nullifies any previous agreementoverning Iowa City's provision of water utility service and sanitary sewer service to University Heights. 9. If, for any reason, any part of this Agreement Is held unconstitu- tional, illegal or void, said decision shall not affect the validity of the remaining portions of this Agreement. Dated this day of Attest: -30 - STATE OF IOWA ) SS: JOHNSON COUNTY ) On this day f of Iowa, personal y app\e rad Jol personally known, and who, b2tng by the Mayor and City Clerk, rekpect that the seal affixed to the fo eg the corporation, and that the i s of the corporation, by authorit of Ordinance No. passe Council, under Rol Ca 1 No. day of THE CITY OF IOWA CITY, IOWA 1989. John McDonald, Mayor 0 19 , before me, a N ary Pub is in and Tor the State n Donald and in K. Karr, to me duly sworn, did say that they are yely, of the City of Iowa City, Iowa; ng instrument is the corporate seal of rument was signed and sealed on behalf its City Council, as contained in (the Resolution adopted) by the City \ of the City Council on the 19 , and that John McDonald and Marian K. Karr acknow edged the execution of the instrument to be their voluntary pact and deed and the voluntary act and deed of the corooration. by it voluntarily executed. \ y YuDnc In Dated this day of THE CITY OF UNI , 1989. HEIGHTS, IOWA , Mayor Attest: Lloyd Knowler, City Clerk 4qt� pf 1p� y .J,bt•. 9f v1.�n,Jyv j<HY p� Srcar•.Tnrr of+SSrAm1; ' S•r.rrF:uocsl: STA•rF: 01. 101%%% Dlty 01.I"S x0:311) JYLAJ l''. BAXTER SF:Cn1'M%R 01••STATH March 6, 1989 Marian K. Karr, CMC City Clerk City of Iowa City Civic Center, 410 E. Washington St. Iowa City, IA 52240 RE: Unified Water and Sanitary Sewer Systems Agreement between the City of Iowa City, Johnson County and the City of University Heights Dear Ms. Karr: We have received the above described agreement(s) which you submitted to this office for filing, pursuant to the provisions of Chapter 28E, 1987 Code of Iowa. EB/kl You may consider the same filed as of March 6, 1989. aa r Secretary of State FILED MAR 9 1989 M CIITY CAN LERK ARR 3�9 3 7 i J s s 2 i r� d i t{{A r l ii t Ii. 'n 3 7 RESOLUTION N0. 89-44 RESOLUTION AUTHORIZING THE CITY MANAGER TO MAKE AN AMENDED OFFER TO PURCHASE FOR PARCEL SISC.08, ALL IN CONNECTION WITH THE SOUTHEAST INTERCEPTOR/SNYDER CREEK SEGMENT SEWER PROJECT. WHEREAS, pursuant to Resolution No. 88-256, adopted December 13, 1988, this City Council did authorize the acquisition of certain easements and property interests in conjunction with the Southeast Interceptor/Snyder Creek Segment Sewer Project; and WHEREAS, due to the redesign of the Southeast Interceptor Sewer crossing beneath First Avenue, the location of the permanent sanitary sewer easement and the temporary construction easement on Parcel SISC.08, Goodwill Industries, was changed, thereby increasing the area of said easements and the resulting damages to the property owner; and WHEREAS, the City's primary appraiser for said project has determined that the compensation for said easements should be increased from $5,000.00 to $5,400.00, in recognition of the increased area affected thereby. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that the City Manager is hereby authorized to increase the City's offer for the acquisition of said easements over Parcel No. SISC.08 to $5,400.00. AND BE IT FURTHER RESOLVED that in the event said easements cannot be acquired at the appraised value indicated above, the City Attorney be and he is hereby authorized and directed to initiate condemnation proceedings for the acquisition of said easements. It was moved by Balmer and seconded by Larson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Balmer X Courtney X Horowitz X Kubby R Larson X McDonald Passed and approved this 28th day of February , 1989. ATTEST:_ CITY CLERK 4570 of PRECEDING DOCUMENT .9 RESOLUTION NO. 89-44 RESOLUTION AUTHORIZING THE CITY MANAGER TO MAKE AN AMENDED OFFER TO PURCHASE FOR PARCEL SISC.08, ALL IN CONNECTION WITH THE SOUTHEAST INTERCEPTOR/SNYDER CREEK SEGMENT SEWER PROJECT. WHEREAS, pursuant to Resolution No. 88-256, adopted December 13, 1988, this City Council did authorize the acquisition of certain easements and property interests in conjunction with the Southeast Interceptor/Snyder Creek Segment Sewer Project; and WHEREAS, due to the redesign of the Southeast Interceptor Sewer crossing beneath First Avenue, the location of the permanent sanitary sewer easement and the temporary construction easement on Parcel SISC.08, Goodwill Industries, was changed, thereby increasing the area of said easements and the resulting damages to the property owner; and WHEREAS, the City's primary appraiser for said project has determined that the compensation for said easements should be increased from $5,000.00 to $5,400.00, in recognition of the increased area affected thereby. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that the City Manager is hereby authorized to increase the City's offer for the acquisition of said easements over Parcel No. SISC.08 to $5,400.00. AND BE IT FURTHER RESOLVED that in the event said easements cannot be acquired at the appraised value indicated above, the City Attorney be and he is hereby authorized and directed to initiate condemnation proceedings for the acquisition of said easements. It was moved by Balmer and seconded by Larson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Balmer X Courtney X Horowitz X Kubby X Larson X McDonald Passed and approved this 28th day of February , 1989. ATTEST: ue„> Z. ia'w C1TY CLERK F9' RESOLUTION NO. 89-45 RESOLUTION AUTHORIZING AND DIRECTING THE MAYOR OR CITY MANAGER TO ENDORSE THE CITY'S ACCEPTANCE OF CONVEYANCE OF EASEMENTS IN CONJUNCTION WITH THE CITY'S SEWER IMPROVEMENT PROJECTS. WHEREAS, the City of Iowa City has undertaken projects to construct the Benton Street Interceptor Sewer, the Southeast Interceptor/Snyder Creek Segment Sewer, the Outfall Sewer, the Sludge Force Main, and the Southeast Interceptor/Ralston Creek Phase 1 and Phase 2 Sewers, all of which projects involve the acquisition of permanent sanitary sewer easements, temporary construction easements, and/or temporary access easements; and WHEREAS, the City has undertaken to acquire such easements by purchase or condemnation; and WHEREAS, the City should authorize particular officials to endorse the City's acceptance of conveyance of such easements. NOW, THEREFORE, BE, AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA, that the Mayor or City Manager be, and they are hereby authorized individually to endorse the City's acceptance of easements in conjunction with the aforementioned sewer improvement projects. It was moved by Ambrisco and seconded by Iforowitz the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Balmer X Courtney R Horowitz x— Kubby R Larson x McDonald Passed and approved this 28th day of February , 1989. to Form ATTEST: ' 'P III ) CIT CLERK 351 I