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HomeMy WebLinkAboutR-1990-080 RESOLUTION NO. 80-90 A RESOLUTION OF THE CITY OF DANIA, FLORIDA, APPROVING THE LARGE USER WASTEWATER AGREEMENT BETWEEN THE CITY OF HOLLYWOOD AND THE CITY OF DANIA; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA, FLORIDA: Section 1 . That that certain Large User Wastewater Agreement between the City of Hollywood and the City of Dania, a copy of which is attached hereto as Exhibit "A" , be and the same is hereby approved, and the appropriate city officials are hereby directed to execute same. Section 2. That this resolution shall be in force and take effect immediately upon .its passage and adoption. PASSED and ADOPTED this 28th day of August , 1990. MAYOR - COMM�SSIO ATTEST: CITY CLERK - AUDITOR APPROVED AS TO FORM AND CORRECTNESS: FRANK C. ADLER, City Attorney Resolution No. 80-90 LARGE T ER WASTEWATER AGREEMENT THIS AGREEMENT made and entered into in Broward County, Florida, as of this _ day of 1990, by and between the CITY OF HOLLYWOOD, a municipal corporation of the State of Florida (hereinafter referred to as "HOLLYWOOD")., and the DANIA, a municipal corporation of the State of Florida (hereinafter referred to as "DANIA" ) W I T N E S S E T H: WHEREAS, HOLLYWOOD and DANIA entered into that certain Large User Wastewater Agreement dated the day of 19 as amended, to provide for utilization of a common area wide wastewater collection, treatment and disposal facility (collectively the "Prior Agreement" ) ; and WHEREAS, the parties deem it mutually beneficial to continue to utilize the Hollywood Regional Wastewater Treatment and Disposal Facilities and the HOLLYWOOD Transmission Facilities, as such terms are defined herein; and WHEREAS, the parties hereto have therefore determined w replace the Prior Agreement with this Agreement in order to provide for the technological advances, more stringent environmental regulations and governmental requirements which have occurred and which have caused the Prior Agreement to be inadequate to address current issues. NOW, THEREFORE, for and in consideration of the mutual terms and conditions, promises, and covenants hereinafter set forth, HOLLYWOOD and DANIA agree as follows: EXHIBIT id All ARTICLE I DEFINITIONS Unless otherwise specifically set forth elsewhere herein, the following words and phrases used in this Agreement shall have the following meanings: Any word or term related to "water" or "wastewater" shall have the definitions listed in the "Glossary — Water and Wastewater Control Engineering" 1981 , Third Edition, published by the American Public Health Association, American Society of Civil Engineers, American Water Works Association and Water Pollution Control Federation. 1. "Annual Average Daily Flow" or "ADF" shall mean the flow determined by the total flow in gallons for a one year t� period divided by 365 days (or 366 days in the event of a leap 1 year) . The one year period shall be a Fiscal Year as defined 1111 herein. 2. "Consulting Engineer" shall mean that professional engineer or engineering firm selected .and retained from time to time by HOLLYWOOD to perform engineering services pursuant to this Agreement. 3. "Dgbt Service Charoaa" rmre ..,.,..� — - Di ' os i d r Transmission) shall include DANIA's applicable share of principal , interest, and coverage requirements on presently outstanding or new issues of revenue bonds, refunding bonds, bank financings or other obligations and including, but not limited to, bond agent fees, credit enhancement fees or service charges, heretofore or hereafter issued by HOLLYWOOD for the henefit of the Large Users and the HOLLYWOOD System. Each Large User's —2— N applicable share of Debt Service Charges for upgrading and expansion shall be based on the formulae set forth in Article IV 2(b) hereof. 4 . "Depreciation Charges" A proportionate share of the three ( 3% ) percent per year depreciation on those portions of the HOLLYWOOD System constructed from revenues of HOLLYWOOD other than HOLLYWOOD sewer system bond proceeds and federal grants, as more particularly set forth in Article IV 2( c) below. 5 . "Domestic Wastewater" shall mean such wastewater as is derived from residential dwellings, business buildings, institutions and the like. 6 . "Financial Consultant" shall mean a firm of certified public accountants , engineers, economists, financial advisors, or any other qualified entity, selected by HOLLYWOOD from time to time to provide financial consultation services pertaining to this Agreement. 7. "Fiscal Year" shall mean a twelve ( 12 ) month period which commences on October 1st of each year and ends on September 30th of the following year . 8 . "Hollywood Transmission Facilities" shall mean those facilities within the municipal jurisdiction of HOLLYWOOD, owned or operated, or both, by HOLLYWOOD, and shall include present facilities as well as any future facilities that are used now or will be used in the future for the purpose of transmitting wastewater to the Hollywood Treatment Facilities . 9 . "Hollywood Regional Wastewater Treatment and Disposal Facilities" or "Hollywood Treatment Facilities" shall —3— mean those facilities owned or operated, or both, by HOLLYWOOD for the purpose of wastewater treatment and disposal , including any future additions, ' improvements or modifications to or extensions of these facilities that may occur from time to time, whether said facilities are within the municipal jurisdiction of HOLLYWOOD or not. 10. "Hollywood System" shall mean collectively the HOLLYWOOD Regional Wastewater Treatment and Disposal Facilities and the HOLLYWOOD Transmission Facilities, which System is hereby deemed to be a Publicly Owned Treatment Works (POTW) under 40 CFR 403. This term shall not include any physical facility that relates solely to the retail collection system of HOLLYWOOD. A map depicting the HOLLYWOOD System Service Area is attached t hereto as Exhibit "A" . 11 . "DANIA System" shall mean the entire wastewater system including manholes, laterals, gravity sewers, lift stations Pumping stations, force mains, and the appurtenances thereto, and belonging to DANIA, whether within the corporate limits of DANIA or not. 12 . "DANIA Service Area" shall mean fhe boundaries in which: ( i ) DANIA is responsible for providing wastewater collection and transmission services to the HOLLYWOOD System, and ( ii ) HOLLYWOOD is responsible for providing treatment services to DANIA, both as more particularly described in Exhibit "B" attached hereto and made a part hereof. The parties agree that DANIA Service Area, as defined herein, shall also include any modifications to such Service Area as a result of -4- , F Iv annexations, deannexations , or by mutual written agreement of the parties. Any change in DANIA's Service Area shall be deemed to automatically amend Exhibit B hereto, as necessary to correct the DANIA Service Area map. 13. "Industrial User" shall mean a user as defined in 40 CFR, as amended. 14 . "Industrial Wastes" shall mean liquid wastes from any industrial process, cooling water discharge , or wastes exclusive of those which are Domestic Wastewater as defined in paragraph 5 of this Article. 15. "Infiltration and Inflow" shall mean water entering the sewer system and service connections from the ground ( Infiltration) or water discharged into a sewer system or service connections from a roof, yard or street drains, cooling water p discharges, manhole covers removed for storm drainage ( Inflow) . li Infiltration and Inflow are mutually exclusive terms . 16. "Large User" shall mean any county, municipality, special district and any other entity which operates wastewater collection or transmission facilities which connect into the Hollywood System. The term "Large User" shall refer only to those counties, municipalities, special districts and other entities which have executed this form of agreement containing substantially the same terms and conditions . HOLLYWOOD shall be included within the defined term "Large User" when said term is used in conjunction with the obligations of the Large User for Debt Service Charges ; Renewal , Replacement and Improvement Account Charges; Depreciation Charges; and Operation, Maintenance —5— and Administrative Costs; the flow projections Article contained in II hereof; the pretreatment requirements contained in Article III hereof; any penalty or compensatory charges set forth herein; and the non-monetary default provisions contained in Article VII hereof. When Hollywood is included as a Large User as set forth above, then Hollywood shall be bound by all terms, conditions, liabilities and obligations of all Large Users as set forth herein. 17 . "Large Users ' Ad sory r mi to shall mean an advisory committee comprised of the appropriate and technically qualified representative of each of the Large Users, including _ HOLLYWOOD, and which shall have the rights and responsibilities set forth in Article VIII hereof. 18• "MCGD", as used herein is an abbreviation for the term "million gallons per day. " 19• '_'Operation Maintenance and Administrative C„s*s" shall mean any reasonable and necessary expenses of operation, maintenance and administration of the HOLLYWOOD System, including but not limited to all HOLLYWOOD Treatment Facilities expenses, ( including all costs attributable to the General Pretreatment Regulations , 40 CFR 403) , allocable transmisc;nn allocable utility administration expenses, allocable utility accounting expenses, allocable general fund administration expenses , all as set forth more completely in composite Exhibit "D" attached hereto and made a part hereof. 20 . '_'Points of Connection shall mean those points where DANIA' s system connects to the HOLLYWOOD System for the -6- i purpose of delivering DANIA' s wastewater into the HOLLYWOOD System from DANIA' s System, which points of connection are more particularly described ad set forth in Article II below. 21. "Renewal , Replacement and Improvement Account Contribution" shall mean a monthly contribution, as more particularly described in Article IV 2 (d) below, which contribution shall be in addition to all other charges due to HOLLYWOOD from DANIA, and shall be deposited into an account ( "Renewal , Replacement and Improvement Account" ) to be established and utilized by HOLLYWOOD for renewal , replacement and improvement of the HOLLYWOOD System, as more particularly described in Article IV 2(d) below. The account established for DANIA shall be , through standard accounting techniques, segregated from any Renewal , Replacement and Improvement Account established by HOLLYWOOD for any other Large User . —7— ARTICLE II . CONNECTION TO THE HOLLYWOOD SYSTEM 1 • Points of onnec ion . The parties hereto agree that the points of connection Of DANIA' s System to the HOLLYWOOD System and meter locations shall be as set forth in Exhibit "C" , attached hereto and made a part hereof. 2 . Easement Points of Connection, HOLLYWOOD may locate the points of connection as per Exhibit "C" and provide for meter locations, and may locate meters on property currently being used by DANIA for wastewater transmission facilities. DANIA shall convey at no cost to HOLLYWOOD, an appropriate easement to the property as needed by HOLLYWOOD for the point of connection, meter locations , as necessary to provide ingress and egress to said facilities. 3. Maintenance of DANIA' s Facili ies, a. DANIA agrees to keep facilities located within its Service Area or under control of DANIA through any agreement with the State, a county, or municipal government or authority or private party, in such condition so as to reasonably prevent any Infiltration or Inflow which would result in extraordinary levels . y^rou„uwateL or storm water into DANIA's System, and thereby into the HOLLYWOOD System. b. DANIA agrees to adopt, enact and enforce such rules, regulations or ordinances as may be required from time to time to ensure that DANIA, or users of DANIA' s system are not discharging or causing to be discharged waters or waste which would cause DANIA' s wastewater to be unacceptable under the provisions of Article III of this Agreement. -8- c. DANIA agrees to be responsible for prompt implementation in its system of all actions required by any federal , state or local regulations imposed on HOLLYWOOD or the HOLLYWOOD System, or DANIA, either now or in the future with regard to the collection, treatment, transportation and disposal of wastewater, including, but not limited to, EPA general pretreatment requirements as contained in 40 CFR 403, and as same may be amended from time to time . 4 . Service Area. DANIA agrees that it shall not accept wastewater from outside its Service Area for transmission to the HOLLYWOOD System unless DANIA receives approval from HOLLYWOOD and any regulatory agencies that have jurisdiction over the matter for said connection prior to its being made, with such approval being the subject of a written supplement or agreement rl which shall be attached hereto and made a part hereof. The parties hereto acknowledge that all contractual obligations regarding connection to and transmission to the HOLLYWOOD System existing as of the date of this Agreement, have been disclosed by each party to the other . Any agreement( s) between Large Users to exchange, trade, sell , assign or otherwise agree with respect to the use of each others flows within their respective Service Areas must be approved, in writing, by HOLLYWOOD. Unless otherwise expressly agreed to in writing, HOLLYWOOD has no obligation to accept or provide service for any wastewater which originates outside of DANIA' s Service Area . Subject to Article II , Section 6 .B. hereof, DANIA agrees that it shall cause all wastewater flow generated within its present Service Area as _9_ . J defined in Exhibit "B" ; to be transmitted to the HOLLYWOOD System. 5. Future Flow Projections . DANIA agrees that it shall annually review its needs for wastewater transmission, treatment and disposal service, and shall , with advice and counsel of a professional engineer project its future ADF needs to the best of its knowledge and ability, for both the next ensuing Fiscal Year and the tenth year projection to HOLLYWOOD, by written notice , on or before March 1st of each year . Said projections shall be in such a format as may be requested by HOLLYWOOD from time to time and shall provide the following W • information: ( 1 ) Average Daily Flow (MGD) for the next ensuing Fiscal Year; and ( 2 ) Average Daily Flow (MGD) anticipated during the three months of greatest flow. 6.A. HOLLYWOOD' s Obligation to Provide Wastewater Treatment Services , HOLLYWOOD acknowledges and agrees that in accordance with the terms and conditions of this Agreement and the other Large User Agreements , it has an affirmative, continuing obligation to provide wastewater treatment services to DANIA and the other Large Users with respect to wastewater flows within the Hollywood Service Area as shown on Exhibit A. HOLLYWOOD' s obligation to provide wastewater services to DANIA shall continue until such time as this Agreement is terminated in accordance with Article VI hereof, or until such time, if any, as HOLLYWOOD is ordered to stop treating DANIA' s flows by injunction -10- or final order of a court of competent jurisdiction or by a regulatory agency with the jurisdiction to issue such an order or injunction. 6 .B . Projected Flow (ADF) . DANIA acknowledges that HOLLYWOOD will rely on DANIA' s future flow projections for ADF for the Fiscal Year 1999-2000, as set forth herein, in calculating and planning for the initial HOLLYWOOD System capacity expansion and the financing for same, and that any material increase or decrease in the amount of actual ADF from that disclosed or projected could seriously impact on HOLLYWOOD and the other Large Users with regard to their obligations concerning plant expansion and financing of same. Accordingly, except for those "Excess Flows" as defined herein, which DANIA f elects to flow to an alternate system, DANIA agrees that it shall cause all wastewater collected within its Service Area as defined in Exhibit "B" hereto to be transmitted to the HOLLYWOOD System throughout the term of this Agreement. In addition, DANIA agrees that it shall not cause any wastewater collected within its Service Area, as defined in Exhibit "B" hereto, to be transmitted to the HOLLYWOOD System in excess of its projected flows set forth herein for the Fiscal Year 1999-2000 throughout the term of this Agreement, unless DANIA acquires or leases additional flow capacity from another Large User as set forth in Article II , Section 9 , herein or unless HOLLYWOOD makes a further plant capacity expansion to accommodate DANIA' s additional flow needs . Debt Service Charges relating to any additional plant capacity expansions shall be borne by those Large Users who require said expansions in proportion to their respective needs. -11- DANIA hereby makes the following ADF Flow projections for the Fiscal Years indicated. FISCAL YEAR 10/1-9130 ADF (RESERVE CAPACITY MGp) 1988-1989 2 . 90 1999-2000* 4 . 70 * Fiscal Year 1999-2000 projections to be used by HOLLYWOOD for purposes of planning HOLLYWOOD System capacity expansion to the year 2000. HOLLYWOOD shall have the right and power to enforce the limitation of its obligations hereunder either by suit or other proceedings at law or in equity and to take such action as necessary to prohibit DANIA from transmitting wastewater into HOLLYWOOD's Transmission and Treatment Facilities which exceeds 110% of the amount of DANIA' s Annual Average Daily Flow as projected for a given Fiscal Year . Subject to obtaining HOLLYWOOD's and any regulatory agency's prior written consents, which consent from HOLLYWOOD shall not be unreasonably withheld, DANIA may transmit only those flows from within its Service Area Uie AUF projected for Fiscal Year 1999-2000 (the "Excess Flows" ) as set forth above to available alternate systems for wastewater treatment. HOLLYWOOD shall have no obligations or liabilities with respect to any Excess Flows which DANIA elects to transmit to any alternate system. 7. Meters , To the extent that HOLLYWOOD has not already done so, HOLLYWOOD shall furnish and install wastewater -12- metering, recording and transmitting devices to be located at the sites as set forth in Exhibit "C" . HOLLYWOOD shall retain ownership of the metering, recording and transmitting devices, together with any appurtenances thereto. DANIA shall reimburse HOLLYWOOD for the design, construction, calibration, and financing costs of such devices , to the extent that DANIA has not already done so, within thirty ( 30 ) days of receiving the invoice for said costs. The type of equipment selected shall be at the discretion of HOLLYWOOD; however, HOLLYWOOD shall require the manufacturer of the equipment to submit certified calibration tests to DANIA and HOLLYWOOD. 8. Egter Maintenance , HOLLYWOOD shall have a semi- annual inspection report prepared regarding the condition and accuracy of the metering device by a representative of the meter manufacturer. The expense for the annual inspection shall be an operating charge of the HOLLYWOOD facilities . A copy of this semi-annual report shall be furnished to DANIA. g . Meter Accuracy. The parties hereto agree that should the metering equipment installed by HOLLYWOOD be found to ho i ne.. -- -•• curate t,eyona the manufacturer's range of accuracy, the meter will be assumed to be inaccurate since the last meter check or for a period of three ( 3 ) months, which ever time is less, and the following month' s billing will be adjusted to show a credit or additional charge to DANIA for metered flow for that period. If DANIA, for whatever reason, requests a meter report in addition to the semiannual reports, HOLLYWOOD will comply. If the meter was malfunctioning or required calibration, the expense -13- associated with DANIA' s request will be an operating expense to the HOLLYWOOD System. If the meter report indicates the meter was operating properly within the manufacturer' s guaranteed range of accuracy, DANIA will be charged in the subsequent monthly bill for the expenses associated with the inspection. 10 . Meter Failure . The parties agree that if at any time during this Agreement a metering device shall in any way fail to tabulate the flow into the HOLLYWOOD collection and treatment facilities, each successive monthly charge shall be based on the last available meter reading and adjusted to equal the same percent of total plant flow each month until the meter is once again fully operational . 11. Registration of Meter Registration of a meter, when maintained as above, shall be binding on both parties for all wastewater flow charges . Access to the meters shall be available to DANIA upon request and in the presence of a representative of HOLLYWOOD. 12 , Ater=r Reading. Meter reading for billing purposes shall occur as nearly as possible on the 25th day of each month. -14- ARTICLE III LIMITATION ON DIS HAR E OF CERTAIN WASTES 1 . Type of Waste to be Discharged, a. Except as hereinafter provided, DANIA shall not discharge nor cause to be discharged any of the waters or wastes described in paragraph b. below, into the HOLLYWOOD System. All of the quality limitations enumerated below apply to concentrations or other physical characteristics obtained from analysis by HOLLYWOOD of representative samples of the waste collected, which samples upon request of DANIA in writing will be divided between HOLLYWOOD and DANIA. Such analysis as set forth herein shall be made in accordance with the latest edition of "Standard Methods for the Examination of Water and Wastewater" prepared and published jointly by the American Public Health Association, the American Waterworks Association and the Water Pollution Control Federation for so long as same is continued to 11 be published. In the event these standards are no longer published, the parties shall agree on the standard for such analysis. b. No person shall discharge or cause to be discharged any of the following described waters or wastes into the HOLLYWOOD Svshpm, ( 1 ) Any inflow and that infiltration which can be deemed cost effective to correct. ( 2 ) Any wastewater or vapor having a temperature higher than one hundred fifty ( 1500) degrees Fahrenheit ( 650C) . ( 3 ) Any gasoline , benzene, naphtha, fuel oil or other flammable or explosive liquid, solid or gas . —15- F7 ( 9 ) Any waters or wastes having a pH lower than 5. 5 or higher than 9 . 5, or having any other corrosive property capable of causing damage or hazard to structures, equipment, or personnel of HOLLYWOOD. (5 ) Any wastewater containing constituents in concentrations which are in excess of the concentrations set forth for normal wastewater: BOD5 400 ppm TSS 400 ppm TKN 30 ppm Phosphorus (P) 15 ppm COD 800 ppm TDS 2000 ppm (6) Any waters containing toxic or poisonous solids, liquids or gases in sufficient quantities, which either singly or by interaction with other wastes, may injure or interfere with any waste treatment process, constitute a hazard to humans or animals, create a public nuisance, or create any hazard in the wastewater treatment plant, as sampled at or in the immediate vicinity of the point of discharge to the HOLLYWOOD :r•- System. The maximum limits for the below listed substances are: Antimony 0 . 200 ppm Arsenic 0. 100 ppm Barium 5 . 000 ppm Beryllium 0. 010 ppm Bismuth 0.045 ppm Boron i .0"uu ppm Cadmium 0 .500 ppm Chlorides 600 . 000 ppm Chromium, Hexavalent 0.500 ppm Chromium, Total 1 .000 ppm Cobalt 1 . 000 ppm Copper, (Total ) 2 . 000 ppm Cyanides 0 . 250 ppm Hydrogen Sulfide 3 . 000 ppm Iron 10 . 000 ppm Lead 0 . 400 ppm Manganese 1 . 000 ppm -16- J F7 Mercury 0. 100 ppm Molybdenum 0. 500 ppm Nickel 1 . 800 ppm Phenols 0 . 005 ppm Selenium 0 .100 ppm Silver 0 .240 ppm Strontium 0 .200 ppm Tellurium Tin 0 . 001 ppm Toxic Radioactive 0 . 800 ppm Isotopes without a special permit 0 . 000 ppm zinc, (Total ) 1 . 000 m Pesticides pp Herbicides 0 . 010 ppm 0 . 010 ppm Fungicides 0 . 010 ppm The maximum allowable values of the substances listed above may from time to time be revised by federal, state, local regulatory agencies, or HOLLYWOOD, if determined by the Consulting Engineer to be in the best interest of the Hollywood System, in which case DANIA agrees not to exceed such revised maximum limits. HOLLYWOOD shall provide DANIA, written notice, of any amendment or change to said schedule . (7) Any solid or viscous substance in quantities ,..., or of such size capable of causing obstruction to the flow in the sewers or an interference with the proper operation of the wastewater facilities, such as, but not limited to, ashes, cans, sand, straw, shavings, metal, glass, tar, wax, lime slurry, lime residues, chemical residues and paint residues. (8) Any wastewater containing more than twenty— five (25) milligrams per liter of petroleum oil, non— biodegradable cutting oils, or products of mineral oil origin. (9) Any water or waste containing more than one hundred ( 100) milligrams per liter of biodegradable oils, fat, —17— L r grease or any oily substances, whether singularly or in a combination. (10 ) Any water or wastes containing suspended solids or color or other such characteristics in quantity that unusual attention or expense is required to handle such material at the HOLLYWOOD facility, without a special permit. (11) Any noxious or malodorous gas or substance which either singularly or by interaction with other wastes, is capable of creating a public nuisance or hazard to life, or which prevents or makes unduly hazardous the entry into sewers for maintenance and repair. (12) Any water or wastes containin which are 4 substances not amenable to treatment or reduction by the wastewater treatment processes employed, or are amenable to treatment only to such degree that the wastewater treatment plant effluent cannot meet the requirements of other agencies having i jurisdiction over discharge to the receiving waters . (13) Any waters or wastes which constitute a hazard to any structure or appurtenances of the HOLLYWOOD System. (14 ) Any water or waste which singularly or in combination with nrhe, ——Ls or wastes that inhibit or interfere with the treatment process or may render the treatment plant effluent toxic as determined by regulatory permit requirements. (15) Any waters or wastes that render the sludge produced by the treatment plant to be other than a Class-I sludge as defined by Florida ' s Department of Environmental Regulation. -18- (16 ) Any substance or constituent in violation of "Federal (National ) Categorical Pretreatment Standards" as issued by the United States Environmental Protection Agency, including any amendments or successor enactments thereto, or which exceeds, ' or would exceed, federal , state or local quality requirement, unless the discharge is allowable by a duly issued operating permit from the Broward County Environmental Quality Control Board. 2 . Compliance, (a) If at any time DANIA shall not comply with the restrictions imposed upon it in the preceding portion of this rr Article, or if DANIA shall create any condition which HOLLYWOOD should determine destructive to any part of HOLLYWOOD' s System, HOLLYWOOD shall give thirty ( 30 ) days written notice to DANIA to discontinue such operation or practice, within which period DANIA agrees to comply. If DANIA does not initiate and/or establish a compliance program within ninety ( 90 ) days of notification, and/or if any damages result from the discharge of improper wastes by DANIA, HOLLYWOOD reserves the right to provide such preliminary treatment facilities or establish such oroarams as required to bring DANIA' s discharge into compliance. DANIA will be responsible to HOLLYWOOD for all charges, both capital and operational for the establishment of these programs or facilities as described herein. Additionally, failure to comply with the conditions stipulated in Section 1 hereof, shall place DANIA in default of this Agreement. -19- i (b) DANIA recognizes and agrees that HOLLYWOOD has the obligation and authority to perform the below as well as any future activities required by Environmental Protection Agency General Pretreatment Regulations, 40 CFR 403 , Section 403 . 8, as set forth below: HOLLYWOOD agrees to notify DANIA, in writing, and will give DANIA the opportunity to take the appropriate action, prior to HOLLYWOOD taking any of the following actions. ( 1 ) deny or condition new or increased contributions or pollutants, or changes in the nature of pollutants, to the HOLLYWOOD System by industrial user; - ( 2) require compliance with applicable pretreatment standards and requirements by industrial users; ( 3 ) control , through permit, contract, order, or similar means, the contribution to the HOLLYWOOD System by each industrial user to ensure compliance with applicable pretreatment standards and requirements; .. ( 9 ) require (a) the development of a compliance schedule by each industrial user for the installation of technology required to meet applicable pretreatment standards and requirements and (b) the submission of all notices and self- monitoring reports from industrial users as are necessary to assess and assure compliance by industrial users with pretreatment standards and requirements, including, but not limited to, the reports required in Paragraph 403 . 12 ; ( 5 ) carry out all inspection, surveillance and monitoring procedures necessary to determine, independent of information supplied by industrial users, compliance or non- -20- compliance with applicable pretreatment standards and requirements by industrial users; ( 6) obtain remedies for non-compliance by an industrial user with any pretreatment standard and requirement . (c) The parties mutually agree that no statement contained herein shall be construed as preventing any special agreement or arrangement between HOLLYWOOD and DANIA or any user within DANIA's Service Area, whereby an industrial waste of unusual strength or charter may be accepted by HOLLYWOOD for treatment, subject to additional payment by DANIA, or said user. (d) HOLLYWOOD agrees to provide DANIA With written notification of changes to the Regulations and a copy of Y the EPA required Pretreatment Annual Report. (e) Nothing contained herein shall obligate DANIA to pay any costs incurred by HOLLYWOOD for pretreatment facilities required as a direct result of discharge of improper wastes into the HOLLYWOOD System by other Large Users. 3 • Za m lin . a• DANIA agrees to include in the design of its wastewater delivery system a sampling station so that HOLLYWOOD can take representative samples of f-h. .. �_.._ - - • tBr as a means of monitoring the characteristics of the wastewater received from DANIA, and DANIA shall further provide to HOLLYWOOD such right- of-way or easements as may be necessary to assure HOLLYWOOD of access to the sampling station site . HOLLYWOOD shall , upon notification to DANIA, have the right at any time to collect samples of sewage and industrial wastes at selected locations -21- within DANIA' s facilities for the purpose of making laboratory analysis of these wastes. The cost of collecting and then testing such samples shall be considered a HOLLYWOOD facility treatment and effluent disposal operating expense. b. DANIA shall, upon written request, submit annually to HOLLYWOOD, no later than April 1 of each year, a laboratory analysis conducted by a State certified laboratory of composite samples of the combined Industrial and Domestic Wastes leaving DANIA' s facilities at each point of connection. The costs for said submission shall be borne by DANIA. DANIA shall give HOLLYWOOD five ( 5 ) days written notice exclusive of Saturday, Sunday and holidays, of its intent to take the required samples, in order that HOLLYWOOD may be present at the time the sample is taken. The analysis made pursuant to this paragraph shall be made on twenty-four ( 24 ) hour representative samples and may include temperature, pH, and those substances listed in a , paragraph lb( 3 ) , ( 5) , (6) , (8 ) and ( 9) above. HOLLYWOOD shall direct DANIA as to the particular samples, including pesticides, herbicides and/or fungicides for which analysis is required. 9 . Regulatory Action, a. DANIA agrees to adopt, enact and enforce such necessary rules, regulations and/or ordinances as may be required so as to ensure that the users of DANIA' s system do not discharge or cause to be discharged waters or wastes which would cause DANIA' s wastewater to be unacceptable under the provisions of this Article, and to furnish to HOLLYWOOD certified copies of said regulations, rules and/or ordinances within one hundred -22- eighty ( 180 ) days from *the date of enactment of same or one hundred eighty ( 180) days from the date of this Agreement, whichever shall first occur. b. DANIA shall be responsible for implementation in its system of federal, state or local regulations imposed on HOLLYWOOD or DANIA, either now or in the future. 5. Additional Charge for Wastes of Unusual Strength, In lieu of the remedies set forth in paragraph 2 of the Article above, in the event of a violation or default by DANIA pursuant to this Article, DANIA shall be subject to an additional charge which shall , upon imposition, be included in DANIA's monthly billing( s ) subsequent to said determination by HOLLYWOOD. Designation of waste as being of unusual strength or character shall occur when the contributed wastewater parameters exceed those set forth in paragraph 1 of this Article. The additional charge shall be based upon HOLLYWOOD' s total cost incurred in providing treatment, additional treatment programs, or additional facilities for the treatment of such wastes of unusual strengths. Any monies received from this Section shall be applied by HOLLYWOOD first to pay for the cost of correcting the problem raiicaA by nAMTC and then to .c- a••__ i uu�.c U11V reievdnt operating expense of the HOLLYWOOD System. 6 . Emergency Action Notwithstanding anything to the contrary contained above, if at any time during the term of this Agreement, HOLLYWOOD determines , in its sole and absolute discretion, that DANIA's failure to comply with the restrictions imposed upon it by this Agreement constitutes such an immediate —23— threat to the HOLLYWOOD System and/or the public health or safety so as to constitute an emergency situation requiring immediate remedial action, then, in that event, HOLLYWOOD may declare an emergency situation to exist and upon written notice to DANIA, may proceed to take whatever corrective action it deems necessary as to said emergency to prevent further nuisance or damage to HOLLYWOOD's System without the necessity of giving notice (other than notice of the emergency situation) to DANIA or affording DANIA an opportunity to remedy the situation. Any costs incurred by HOLLYWOOD , in response to an emergency situation shall be charged to DANIA, and shall be the sole responsibility of DANIA to pay. 1 K -24- ARTICLE IV. CHARGES AND BILLING 1 . Annual Estimate HOLLYWOOD shall estimate all costs ( on a Fiscal Year basis ) of providing wastewater transmission, treatment, and disposal services to DANIA beginning with Fiscal Year 88-89 . This annual estimate shall be the basis for DANIA' s monthly billings during the next succeeding Fiscal Year. Adjustments will be made annually as described below based upon actual flows and actual costs when known. 2. Billings Procedure The parties hereto agree that HOLLYWOOD shall provide wastewater transmission, treatment and disposal services to DANIA, at rates and charges constituting the full and actual costs of such service, including but not limited / to Operation, Maintenance and Administrative costs , Renewal , Replacement and Improvement Account Contributions, Debt Service 6 Charges, Depreciation Charges , and compensatory charges, and HOLLYWOOD shall set the same proportionate rates and charges for all Large Users of the HOLLYWOOD System. DANIA shall pay a monthly charge to HOLLYWOOD, as calculated pursuant to Section IV-1 , above, for wastewater transmission, treatment and disposal services provided by HOLLYWOOD, commencing on the date of execution of this Agreement. Such charges shall be na;rl r, HOLLYWOOD by DANIA monthly, and shall include the following components : a. Operation Maintenance and Administrative Os c " Operation, Maintenance and Administrative Costs are defined in Article I , paragraph 19 hereof, and will be estimated for each Fiscal Year. The portion of the monthly charge to DANIA -25- for Operation, Maintenance and Administrative Costs shall be based on the estimated rate per thousand gallons and shall be applied on actual flow used by DANIA during the billing period. ( 1 ) Ad Lstment to Operation Maintenance and Administrative Costs , At the end of each Fiscal Year, an annual adjustment shall be computed to determine DANIA's share of the actual Operation, Maintenance and Administrative Costs . This computation will be based upon the actual operation, maintenance and administrative expenses recorded for the HOLLYWOOD System for that Fiscal Year, multiplied by DANIA' s percentage of the actual number of gallons of wastewater treated and disposed of through the HOLLYWOOD System for that Fiscal Year. Each adjustment in the operation, maintenance and administrative monthly charges shall be made subsequent to, and subject to final verification of the operation, maintenance and administrative expenses incurred which verification shall be included in the annual review of said charges . The above—referenced annual review shall be performed by an independent Financial Consultant selected by HOLLYWOOD and shall be distributed to DANIA on or before March 31 of the year following the end of each Fiscal Year. In the event the annual adiustment rofie,+ . � - - -- .11, , an underpayment has been made by DANIA with regard to Operation, Maintenance and Administrative Costs, then the amount due and owing for said underpayment shall be shown as a separate line item on the next monthly bill sent to DANIA after the adjustment has been made . In the event the annual adjustment reflects that an overpayment has been made by DANIA, with regard to Operation, Maintenance and Administrative —26— ^I Costs , then in that event the amount of said overpayment shall be credited to DANIA as a separate line item on the next monthly bill after the adjustment has been made. b. Debt Service Charges Debt Service Charges, as defined in Article I , paragraph 3, for the HOLLYWOOD System shall be computed annually as follows : ( i ) with respect to projects relating to improvement and upgrading of the HOLLYWOOD System, DANIA's Debt Service Charges shall be computed annually by taking the ratio of the amount of DANIA's actual flow to the total flow of the HOLLYWOOD System for each Fiscal Year, multiplied annually by the total debt service due in that Fiscal Year for such upgrading project( s) ; ( ii ) with respect to projects relating to the initial plant capacity expansion of the HOLLYWOOD System, DANIA's Debt Service Charges shall be computed annually by taking the difference between DANIA' s actual ADF Flows for Fiscal Year 1988-89 and DANIA' s projected ADF Flow for the Fiscal Year 1999- 2000 and then dividing that difference by the projected increase in capacity in the HOLLYWOOD System over and above the total System capacity for the Fiscal Year 1988-1989 as a result of such planned capacity expansion; and then multiplying that fraction by the total debt service due in that Fiscal Year for such expansion project( s ) ; provided however, DANIA' s Debt Service Charges with respect to this initial capacity expansion financing will be adjusted pursuant to Article II , Section 6 .B. in the event that DANIA's actual flows exceed its projected flows for Fiscal Year 1999-2000 ; and ( iii ) with respect to projects relating to transmission pipes and related transmission facilities within the -27- HOLLYWOOD System, DANIA' s Debt Service Charges shall be computed annually by multiplying the proportional cost, based on design, of the new transmission facilities which are required by DANIA by the total debt service due in that Fiscal Year for such transmission project. in addition, except as otherwise set forth in Exhibit "D" hereto, any Debt Service Charges which may be due HOLLYWOOD from DANIA by reason of any financings relating to the HOLLYWOOD System under the Prior Agreement ( other than financings for transmission) shall be recalculated in accordance with the applicable formulae set forth above. The above described formulae are illustrated in Exhibit "D" attached hereto. In y determining which projects are related to upgrading or expansion of the Hollywood System, prudent engineering judgment shall be used. The Debt Service Charges relating to any additional plant capacity expansions of the HOLLYWOOD System shall be borne by the Large users who require said expansion in proportion to their respective needs. C. Depreciation Charges , Depreciation Charges as defined in Article I , paragraph 4 above, shall be computed based on DANIA's proportionate share (as established in the Prior Agreement) of the three ( 3% ) percent per year depreciation on the existing facilities constructed from revenues of HOLLYWOOD other than the HOLLYWOOD Sewer System Bond proceeds and federal grants; the cost of said facilities being One Million Ninety-Six Thousand Eight Hundred Sixty and 74/100 ( $1 , 096, 860.74 ) Dollars . d. Renewal , Replacement and Improvement Account Contribution. -28- (1 ) Funds from the Renewal, Replacement and Improvement Account, shall be used for the improvement, repair and replacement of the HOLLYWOOD System. Said Account shall be funded through contributions made monthly by DANIA to said account. As of October 1 , 1988, the balance in DANIA's Account is deemed to be zero, and all other amounts on deposit in said account shall be carried forward. HOLLYWOOD shall maintain a separate Renewal, Replacement and Improvement Account for each Large User. Any amounts collected by HOLLYWOOD for DANIA's Account shall be utilized by HOLLYWOOD only for renewals, replacements and improvements to the HOLLYWOOD System. HOLLYWOOD shall use prudent engineering judgment in determining the need for renewal , replacement and improvement projects. Expenditure of funds on deposit in each Large User' s RR&I Account shall be made based on their respective percentage of the total System flows. The contributions made by DANIA to the Account shall be in addition to all other charges collected by HOLLYWOOD set forth herein. Except as otherwise provided herein, DANIA' s monthly contribution to this Account shall be ten percent ( 10%) of DANIA' s monthly total bill for wastewater transmission and treatment, including, but not limited to, Debt Service Charges, Depreciation Charges, and Operation, Maintenance and Administrative Costs. Payments to said Account shall continue to be made monthly at the aforestated rate until such time as DANIA' s Account contains funds equal to DANIA' s share of a maximum amount of five ( 5% ) percent of the actual cost of the HOLLYWOOD System, and as said System may be expanded from time to _29_ time . During any period in which DANIA' s Account is maintained at a level equaling its pro rata share of five percent ( 5% ) of the actual cost of the HOLLYWOOD System, as expanded, no monthly payments shall be due from DANIA to this Account; provided, however, that pursuant to this Article, the maximum level may be modified from time to time, in which event DANIA shall resume making monthly payments to this Account until its required contribution level is reached. In the event the balance in DANIA' s Account shall at any time fall below the maximum prescribed level set forth herein, then at that time DANIA shall resume making monthly payments in accordance with this paragraph so as to bring the balance in said Account to the maximum �,,... prescribed level . Said Account shall include any unexpended monies deposited since October 1 , 1988 , remaining on deposit in the special renewal or replacement and improvement fund established under the Prior Agreement between the parties. Contributions to the Renewal, Replacement and Improvement Account shall earn interest at HOLLYWOOD' s pooled fund interest rate, which interest shall be credited annually based on the average monthly balance in DANIA' s Account. ( 2) In the event it is necessary to renew, replace or improve an element of the HOLLYWOOD System for which sufficient funds are not available in the Renewal , Replacement and Improvement Account established for DANIA, HOLLYWOOD shall notify DANIA of the deficiency in said Account. DANIA shall have a period of sixty ( 60 ) days from the date of said notification to contribute any said deficiency to the Renewal, Replacement and -30- Improvement Account. In the event DANIA has not made said deficiency contribution within sixty ( 60) days of the date of notification of the deficiency by HOLLYWOOD, HOLLYWOOD, at its option may: ( i ) obtain financing necessary to fund the deficiency, in which event DANIA shall pay the cost of said financing as additional Debt Service Charges ; or ( ii ) HOLLYWOOD may fund the deficiency internally, in which event DANIA shall repay HOLLYWOOD the amount of the deficiency, plus interest at HOLLYWOOD's earned interest rate as an additional monthly charge to DANIA, over a period of not less than sixty ( 60) months and not greater than one hundred twenty (120) months. 3 . Additional Cap ci v At such time as financing is secured for construction of additional facilities as Fr contemplated in Article V below, so as to service the various Large Users, or it becomes necessary for DANIA to secure additional transmission or treatment capacity, DANIA shall pay all additional Debt Service Charges based on the formulae set forth in Article IV, 2(b) hereof. 4 . P�!vment and -Lenalties for Nonpayment The parties agree that HOLLYWOOD shall bill DANIA for providing the services n8C@55aiy for wastewater treatment, transmission and disposal , on a monthly basis in accordance with HOLLYWOOD' s standard billing procedures . DANIA shall pay such billings within forty-five (45) days of the receipt of the monthly bill . Should a billing or a portion of the billing be outstanding for a period of more than forty-five ( 45 ) days from the date of receipt of the original billing, then DANIA shall be considered in default of -31- this Agreement. Should DANIA not pay within the forty-five ( 45 ) day period set forth herein, DANIA shall pay interest on the unpaid balance at the rate of twelve percent ( 12% ) per annum. 5. Dispute Over Amounts Billed. DANIA agrees that in the event of a dispute as to a billing invoice or the amount DANIA owes on a monthly bill , and which dispute the parties cannot resolve within forty-five ( 45) days from the date of receipt of the original invoice, then DANIA shall automatically . deliver to HOLLYWOOD the total amount billed and an adjustment of the billing invoice amount, if any, shall be made subject to subsequent agreement or adjudication. The amount of such charge that is in dispute shall be held in escrow by HOLLYWOOD until the dispute is resolved, provided however, that in the event the disputed amount relates to Debt Service Charges, then HOLLYWOOD shall be entitled to apply such disputed amount to make debt service payments when due . 6. Access to Records . HOLLYWOOD agrees that it shall maintain accurate accounting records for the wastewater collection, treatment and disposal facilities, and that HOLLYWOOD will make available to DANIA for inspection or review said records upon reasonable advance notice (at least fifteen 15 days) and specific written request as to the records requested. Any questions or explanations necessary as to the information contained in such records shall be addressed at the Large Users' Advisory Committee meetings. -32- ARTICLE V.- ADDITIONAL OBLIGATIONS OF THE PARTIES 1 . Expansion of the Hopwood Regional wastewater Treatment Facilities . HOLLYWOOD and DANIA acknowledge that the present rated capacity of the HOLLYWOOD Regional Wastewater Treatment Facilities is 38 MGD, and that subsequent to the execution of this Agreement and similar agreements between HOLLYWOOD and the other Large Users, that the HOLLYWOOD System is planned to be initially expanded to treat the total projected flow requirements for the year 1999-2000 of all Large Users, including HOLLYWOOD. In the event that any further plant expansion( s ) become necessary, then the costs , including the Debt Service Charges, relating to such additional expansion( s ) shall be borne by those Large Users who require said expansion( s) in proportion to their respective needs. In the event that the HOLLYWOOD System is rerated without any capital expenditure to an MGD in excess of its then current capacity by an agency with a regulatory authority to rerate the capacity of the plant, then each of the Large Users, including HOLLYWOOD, shall be given credit for such increased capacity on a pro rata basis in proportion to their maximum projected reserved flows set forth in Article II , Section 6 .B. hereof as adjusted or amended, as a percentage of total projected reserved flows for all Large Users into the HOLLYWOOD System at the time of rerating. 2 . Cost of Expansion of the Hollywood Regional_ wastgwate r Treatment Facilities . At such time as HOLLYWOOD, determines it is necessary, in order to respond to the needs of the Large Users utilizing the HOLLYWOOD System, to expand the -33- F HOLLYWOOD System, HOLLYWOOD shall charge DANIA monthly one- twelfth ( 1/12) of DANIA's annual Debt Service Charges then due attributable to said expansion which shall be computed in accordance with the formulae set forth in Article IV, 2(b) hereof. Said Debt Service Charges will be imposed at the time that HOLLYWOOD incurs the debt. Nothing contained herein shall obligate HOLLYWOOD to undertake financing, either by issuing wastewater system revenue bonds, or any other financial mechanism, without the cooperation Of DANIA, and the other Large Users and DANIA agrees to cooperate and execute any reasonably necessary document that may be required by the credit enhancement provider, bond insurer or rating agencies in order for HOLLYWOOD to obtain the financing for the expansion contemplated herein, including, documents , representations and consents, if any, required by bond rating agencies and municipal bond insurers or credit enhancement T providers in connection with obtaining a credit rating or bond insurance on the bonded obligations; provided however, that DANIA shall not be required to execute any document or note that creates a bonded indebtedness directly to DANIA. F2ALj!A' 5. Obligation to Deliver Wastewater Except as otherwise provided in Article II hereof, DANIA agrees that during the term of this Agreement, it shall deliver all existing, and future wastewater flows collected by it, from within its Service Area as set forth in Exhibit "B", to the HOLLYWOOD System, and HOLLYWOOD agrees to accept such wastewater flows from DANIA's Service Area on the terms and conditions set forth herein. -34- I 4 . DANIA'S Cooperation DANIA agrees to cooperate and execute any necessary documents to effect the agreements contained herein, and to cooperate with HOLLYWOOD under the terms of the Florida Intergovernmental Cooperation Act as may be required from time to time in furtherance of this Agreement, and DANIA further agrees that it shall take no action which would jeopardize the tax exempt status , pursuant to the Internal Revenue Code, as amended from time to time , of the interest on any debt now or hereafter issued to finance the HOLLYWOOD System. 5. Changes_ Required by Outside Agencies Notwithstanding HOLLYWOOD' s obligations with respect to treating and disposing DANIA's flows as provided herein, HOLLYWOOD may revise the schedule of flows set forth herein in the event any federal , state or local agency having jurisdiction promulgates rules and regulations that would affect the amount or quality of flow HOLLYWOOD can treat or dispose. In that event, the parties agree to comply with any such rule or regulation and make such amendments to this Agreement as may be necessary, provided, however, that should there be a determination by either party that the rules or regulations so promulgated are unreasonable or not binding, the parties hereto reserve the r; .,i,} I-- said regulations. HOLLYWOOD and DANIA acknowledge that certain federal , state and local agencies have jurisdiction or control over pollution matters and, should such agency issue legal and enforceable orders or rules that may alter any of the terms and conditions of this Agreement, there shall be no liability on either party by reason of such action, provided that HOLLYWOOD —35— shall not be precluded from making any necessary adjustments to the sewage collection and treatment rates; provided further, that any increased costs incurred by HOLLYWOOD from any such action shall be assessed pro rata to DANIA based on DANIA' s actual flows; unless said adjustments are occasioned solely by the acts of Large Users other than DANIA, in which case DANIA shall not be liable for said adjustments. 6 .. Adequate Rate Schedule . DANIA agrees that it shall establish and maintain rates and service charges or other means of obtaining funds within its Service Area which shall be sufficient to provide the monthly payments to HOLLYWOOD for the !� wastewater collection and treatment service contemplated herein, and such rates and charges shall be revised as may be required from time to time to provide sufficient funds to pay any sums due HOLLYWOOD under the terms of this Agreement. —36— ARTICLE VI . PROVISIONS RELATING TO TERMINATION OF AGREEMENT AND ASSIGNMENT OF HOLLYWOOD'S RIGHTS AND OBLIGATION 1. Termination Cla se, Except as otherwise provided in Section 2 of this Article VI, this Contract may be terminated at any time by either participating party on one ( 1 ) years notice (or such shorter time as the parties shall mutually agree) to the other in writing by certified mail , only under the following conditions : a. Termination by DANIA. ( 1 ) Subject to subsection ( 3 ) below, DANIA shall pay to HOLLYWOOD in advance of termination all Debt Service Charges which would otherwise have been chargeable to DANIA under the terms of this Agreement (based upon a weighted average for future years using projected flows) . If such Debt Service a Charges can be reduced by calling bonds for redemption or 11 otherwise providing for their payment prior to maturity under the terms of their issuance and if DANIA provides HOLLYWOOD with '�- sufficient money to cover its Debt Service Charges and all expenses in connection with such call for redemption, including premiums, legal fees and costs, publication costs, and trustees and paying agents fees and mailing costs, then HOLLYWOOD shall call for redemption as many of such bonds as may be called under their terms with the money paid by DANIA to HOLLYWOOD. HOLLYWOOD reserves the right to determine which bonds to call . (2 ) Subject to subsection ( 3 ) below, DANIA shall , in addition to Debt Service Charges, pay to HOLLYWOOD a sum equal to the then present value of all other payments which, in the absence of such termination, would be made by DANIA to —37— HOLLYWOOD hereunder during the period when HOLLYWOOD would receive and treat wastewater from DANIA, through and including five ( 5) years from the date of termination using DANIA' s annual payment in the year of termination. The "then present value" as used above means the value on the termination date of the various sums payable thereafter, discounted at the then prevailing Prime interest rate plus all payments due and past due with interest at the then prevailing Prime interest rate from the date due to the termination date. In making such determination, DANIA shall be given full credit for all actual reductions , if any, in HO.LLYWOOD' s expenses of operation and maintenance , and administration which reductions are attributable to the / termination of this Agreement. Hollywood shall also have an 1 affirmative obligation to take such actions as are available in d order to mitigate its expenses. ( 3 ) There shall be deducted from the sums of the amounts payable by DANIA under subparagraphs ( 1 ) and ( 2 ) above any amount of liability (not in excess of said sum) assumed in writing by any other municipality, political subdivision or other entity, simultaneous with or prior to such termination if (a ) r.anahil_i_ry of mnnirinalifv 1-ho nnlifin�l e..l A; • < - -J 'C--- -I I —- I--- ----- ----- other ii✓i vn V r entity assuming such liability to satisfy the same shall be found satisfactory by HOLLYWOOD, (b) such municipality, political subdivision or other entity shall execute an agreement with HOLLYWOOD substantially the same as this Agreement, ( c) whenever any revenue bonds of the CITY OF HOLLYWOOD payable in whole or in part from sewer revenues are then outstanding which are secured -38- j by ordinance, resolution or indenture empowering a trustee or other agent on behalf of the holders of such bonds to consent to said assumption of liability, if such trustee or other agent' s consent shall have been obtained in writing, and (d) DANIA shall execute and deliver to HOLLYWOOD, in a form acceptable to HOLLYWOOD, an agreement releasing and holding HOLLYWOOD harmless and indemnifying HOLLYWOOD from any responsibility, liability or claim for or relating to collecting and/or treating DANIA' s wastewater from and after the date of termination of this Agreement. b. Termination by HOLLYWOOD ( 1 ) There shall be a readily available alternative means of treating and disposing of the wastewater of DANIA which HOLLYWOOD would otherwise be required to treat and dispose of under this Agreement and such alternative means must meet all state, federal and local requirements pertaining to the public health, the pollution of public water and the protection of the environment generally. (2 ) Any revenue bonds of the CITY OF HOLLYWOOD payable in whole or in part from wastewater revenues are secured by ordinance, resolution or indenture which requires a trustee or other agent for the holders of such bonds to consent to such termination on their behalf, such trustee or agent shall so consent in writing. (3 ) HOLLYWOOD shall pay to DANIA an amount equal to the sum of (a ) the actual expenses incurred by DANIA in changing from the use of the HOLLYWOOD System to the use of the —39— J governmental entity or an inter-governmental or regional authority. In the event HOLLYWOOD sells, leases or transfers the HOLLYWOOD System to Broward County, another governmental entity or an inter-governmental or regional authority, HOLLYWOOD shall , upon such sale, lease or transfer assign all or some of its rights and obligations hereunder to said purchaser, lessee or transferee. Upon the assumption of such assignment by said purchaser, lessee , or transferee , HOLLYWOOD shall cease to be liable for further performance of any obligations or responsibilities so assigned. HOLLYWOOD shall give DANIA at least 60 days advance written notice of its intention to sell , lease or transfer the HOLLYWOOD System under this Section. In the event that Hollywood sells, leases or transfers w the HOLLYWOOD System to any such entity and such entity agrees to pay HOLLYWOOD an amount of money for the HOLLYWOOD System which is in excess of the then combined total outstanding long-term and short-term debt (principal , interest and premium, if any, ) of the HOLLYWOOD System, then this "excess amount" , when actually paid, shall be divided among all of the Large Users, including Hollywood, based upon their respective percentages of actual flows to the total System flows for the Fiscal Year in which fha HOLLYWOOD System is transferred; provided further that HOLLYWOOD shall not be obligated to pay DANIA or any other Large User any amount that may otherwise be owed by HOLLYWOOD under Section 3(b) hereof to the extent that such increased payments are due to the "excess amount" paid by the new owner or transferee of the HOLLYWOOD System. -41- J ARTICLE VII . PROVISIONS RELATING TO DEFAULT 1. Default . a. The parties agree that in the event either party commits an act of default under any of the terms or provisions of this Agreement, the party so defaulting shall be liable to the other party for any expenses, loss or damage occasioned by reason of such default. b. The parties acknowledge that in order to construct the planned expansion of the HOLLYWOOD System, it is necessary for revenue bonds to be issued from time to time to provide the funding source for said expansion program and, by reason of such obligations incurred by HOLLYWOOD with regard to said bond financing, it is imperative that HOLLYWOOD be paid in a timely fashion the sums due from DA14IA pursuant to this Agreement. In light of the obligations to the bondholders, and the acknowledgments that HOLLYWOOD has relied on DANIA' s representation that payment of all sums due HOLLYWOOD under the terms of this Agreement shall be prompt in their remittal, the parties hereby agree to resolve disputes over monthly billings in accordance with Section 2 hereof. In the event that DANIA shall have committed an act of monetary default by failing to pay a monthly service bill within forty-five ( 45) days of receipt of said bill , then DANIA shall pay an interest penalty on the unpaid balance at the rate of 12% per annum and HOLLYWOOD shall have, in addition to any other rights and remedies provided for herein, the right and power, by suit, action, mandamus or other such proceedings at law or in equity, to protect, enforce and compel _42_ performance and payment by DANIA or any of the officers, agents or employees of DANIA to perform and carry out its and their duties and obligations under this Agreement or applicable law. C. DANIA covenants and warrants that it shall maintain a rate structure sufficient to pay all obligations hereunder. Failure of the governing body of DANIA to so maintain an adequate rate structure shall be considered a monetary default of this Agreement . 2 . Dispute Over Monthly Billings As provided in Art. IV, Secs. 4&5 herein, HOLLYWOOD shall submit to DANIA a monthly billing invoice for the amounts then due, and if DANIA does not agree upon the amount invoiced, then DANIA shall notify HOLLYWOOD in writing of the disputed amount; provided, however, within forty-five ( 45 ) days of receipt of the original billing invoice DANIA shall automatically deliver to HOLLYWOOD the original amount billed in full and DANIA and HOLLYWOOD shall continue to work out an agreement as to the amount in dispute . The adjustment of the billing invoice amount, or actual cost, expense or damage shall be subject to subsequent agreement or At court adjudication. HOLLYWOOD shall hold the amount of such charge that is in dispute in escrow until an agreement is reached; provided, however , that to the extent that the amount in dispute relates to Debt Service Charges, then Hollywood shall have the right to use such disputed funds to make debt service payments when due. 3 . Non-Monetary Default Except as otherwise expressly provided herein, with respect to non-monetary defaults -43- only, committed by DANIA; the default, if not otherwise resolved after due and diligent effort by both parties, shall be submitted to binding arbitration a5 set forth in paragraph 4 below. 4 . Arbitration. Any non-monetary dispute between HOLLYWOOD and 'DANIA arising from this Agreement which cannot otherwise be resolved after due and diligent effort by both parties , shall be the subject of binding arbitration. Said arbitration shall be conducted by a board of three arbitrators, each of whom shall be qualified as a licensed engineer or a certified public accountant, or otherwise qualified person, and who shall not be employed by either party on a regular salaried basis. Each party to this Agreement shall choose one arbitrator, and the two so chosen shall choose a third who shall act as chairperson. The fees, charges and expenses of such arbitrators shall be borne equally by the parties hereto. DANIA agrees that during any such period of arbitration, it will continue to promptly make all payments due HOLLYWOOD, pursuant to the terms of this Agreement and Hollywood shall continue to provide wastewater treatment services to DANIA in accordance with the terms hereof. -44- t� L� 5. Litigation and Arbitration Cos a. DANIA agrees that, to the extent legally permitted, it shall indemnify and hold HOLLYWOOD harmless from and against any and all costs or expenses incurred by HOLLYWOOD in the event of any litigation in which DANIA or HOLLYWOOD is or may become a party as either Plaintiff or Defendant, which results from and is determined to be caused in whole or in part from the effects of the improper introduction of materials by DANIA or any users of DANIA' s System into the HOLLYWOOD System, or any portion thereof which may cause damage within or without the HOLLYWOOD System. b. In the event of litigation between the parties to enforce the terms of this Agreement, then in that event the prevailing party shall be entitled to recover all costs and fees incurred, including but not limited to reasonable attorneys' fees. .• 6. Fines , In the event any fines, penalties or damages are incurred or imposed by or on HOLLYWOOD by reason of DANIA' s violation or default of its obligations under this Agreement, then, in that event, DANIA shall be solely responsible for the payment of same. 7. Force Majeure The parties agree that in the event of a temporary cessation of wastewater transmission which results from an act of God, hurricane, lightning, fire, strike, casualty, necessary maintenance work, breakdown of machinery, insurrection or riot, that said temporary cessation shall not constitute a default in this Agreement on the part of either of —45— ..... .. . .. .. .. . the parties, and neither party shall be liable to the other for any damage resulting from such cessation, and unless written notice to the contrary is received from any federal , state or local agency, or any court having jurisdiction over the subject matter, HOLLYWOOD shall continue to accept and dispose the wastewater transmitted to it by DANIA if possible, regardless of the degree of treatment available and DANIA, during any such period of interruption or reduced treatment shall continue to pay its share of Debt Service Charges due and the actual costs incurred by HOLLYWOOD. In the event the amount of the Debt Service Charges and actual costs incurred during any period of temporary cessation cannot be determined by reason of no flow, or insufficient flow of wastewater , then the Debt Service Charges and actual costs incurred paid by DANIA shall be based on the twelve ( 12) month period prior to said interruption of service or reduced treatment. —46— ARTICLE VIII_, ADMINISTRATION 1 . Execution and Agreement The parties hereto agree that upon execution of this Agreement by the appropriate officials of HOLLYWOOD and DANIA, that said Agreement shall be in full force and effect as of the date of said execution, provided that the effective date for billing purposes and calculations of amounts owed shall be as of October 1, 1988. Upon execution, this Agreement shall be filed with the official records of the Broward County Clerk ' s Office . 2 . Large Users Advisory Committee ( LUAC) . The parties agree that HOLLYWOOD shall , subject to the terms contained herein, have sole and exclusive authority as to the administration, operation and maintenance of the HOLLYWOOD System, including establishment of the annual budget, establishment and amendment of service fees, rates and other charges necessary for the efficient operation and maintenance of the HOLLYWOOD System; provided however, that commencing with the charges to be paid by DANIA during the 1991-92 Fiscal Year and each Fiscal Year thereafter, Hollywood will consult with DANIA and each of the other members of the Large User' s Advisory Committee on or before May 15 of each Fiscal Year with respect to establishing the proposed respective fees, rates, RR&I contributions and other charges to be paid by the Large Users in the next ensuing Fiscal Year. In addition, HOLLYWOOD shall have the obligation to meet with the Large Users Advisory Committee at least quarterly to review rate and budgeting matters and the Committee shall have the right to make recommendations to —47- HOLLYWOOD concerning these matters. HOLLYWOOD also agrees to meet with the Large User' s Advisory Committee and discuss any plans relating to relocation of System facilities prior to any definitive action. 3 . Invalidity of Provision. In the event it is determined that any section, clause, sentence , or provision of this Agreement shall be invalid, then same shall not affect the validity of any other part of this Agreement which can be given effect without such invalid part or parts. The parties agree that this Agreement shall be binding upon the successors and assigns of the parties hereto and may be enforced by appropriate action of court, or courts of competent jurisdiction. 4 . Legal Requirements . The parties agree that each has complied with all necessary legal requirements for execution of this Agreement, including but not limited to due consideration of the terms and conditions hereof by the appropriate governing �•� body of each municipality and its city attorney, and public hearing on this matter; and each party hereto agrees to exchange with the other, certified copies of any official records of its governing body authorizing the execution of this Agreement on its behalf. 5 . Notice . Any notice required to be given hereunder in writing shall be considered to be properly given if the same has been sent in writing by certified or registered mail to the following: —48— HOLLYWOOD: City of Hollywood 2600 Hollywood Boulevard Hollywood, FL 33021 Attention: City Utilities Director Copy to: City Attorney DANIA: 6 , Prior Agreements . This document, upon its execution by both parties shall supersede any and all prior negotiations, correspondence, conversations , Large User agreements, including the Prior Agreement and any amendments thereto, or understandings applicable to the matters contained ' herein and the parties agree that there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Accordingly, it is agreed by the parties that there shall be no deviation from the terms hereof which shall be predicated upon ., any prior representation or agreements whether oral or written, unless said are specifically provided for herein. 7 • Modification, Amendment or Alteration. Except as otherwise expressly provided herein as to certain matters which � m Ai firation or amendment to the only requite written . i n ••� ••----- -- -- terms or conditions of this Agreement shall be effective unless contained in a supplemental document executed with the same formality of this Agreement and attached hereto. B . Findings . All of the recitations contained in the preamble of this Agreement are true and correct and incorporated herein by reference. _qg_ L� 9 . Counteroart Execution, This Agreement may be executed in counterpart originals, each of which shall be deemed an original . DANIA shall provide HOLLYWOOD with a certified copy of DANIA' s resolution or evidence of other such action authorizing DANIA to execute this Agreement. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement on the respective dates under each signature . Signed, sealed and delivered in the presence of: HOLLYWOOD: IN CITY OF HOLLYWOOD, a Municipal Corporation of / the State of Florida 6/ By: Mayor Dated: Attest: Martha S. Lambos, city Clerk rrepaied and appry v�d as rn, form and legality by: Alan B. Koslow City Attorney —50— i ( See prior page for additional signatures ) (Additional signatures to the Large User Wastewater Agreement between HOLLYWOOD and DANIA) Approved: Paul E. Wimberly Finance Director Robert A. Creighton Utilities Director DANIA: a municipal corporation of the State of Florida By: Dated: Attest• Clerk Approved as to Form and Legality: By: —51— s I � Q � Pti ' Q I Rap"1 TR CD So m � v w EXHIBIT 'A- rgr SI6IHX3 Al. a � w r Q Q O Z W AV 5 cn Uw it Tm nw traou Alsm � t I 2� V /i o1ar 061wvv 3 L � a � II I� o I � �,rr►e • o NO■ 1I8Ina y -•.�+-+mot � a ZZN � O � a N W q* T I Z ra I V. �.K . WWI yl p�• i g g�a jjpp - _ � � '��� WUYWM SOUTHERN REGIONAL WTP LARGE USER METER AND INTERCONNECT LOCATIONS 1 . HALLANDALE METER AT LIFT STATION E-B, BOO THREE ISLAND BLVD. INTER-CONNECTION AT 13TH AVENUE WASHINGTON STREET MANHOLE #8334N 2. HALLANDALE METER AT LIFT STATION E-6, 1350 FUNSTON STREET INTER-CONNECTION AT 14TH & JACKSON STREET, VAMBUREN ALLEY MANHOLE 627 3. HALLANDALE METER AT U.S. 1 & PEMBROKE ROAD INTER-CONNECTION AT 19TH AVENUE & PWNKETT STREET MANHOLE 401A N 4. HALLANDALE METER AT FLETCHER STREET & 22ND AVENUE r INTER-CONNECTION AT 23RD TAFT STREET FJ 5. PEMBROKE PARK COCA COLA PLANT, PEBMBROKE ROAD INTER-CONNECTION AT 620 S. RAINBOW MANHOLE 353 6. MIRAMAR SEMER PLANT INTER-CONNECTION AT JOHNSON STREET & 62ND AVENUE 7. PEMBROKE PINES METER AT M.N. 77 MAY, 13TH STREET INTER-CDMNECTIN AT TAFT STREET AND 56TH 8. DANIA METER AT SHERIDAN & S.E. 6TH AVENUE INTER-CONNECTIN AT 14TH & HARDING STREET MANHOLE 1002 9. • COOPER CITY, DAVIE (TREATED) METER AT COOPER CITY AND DAVIE SEWER PLANTS INTER-CONNECTION AT HOLLYWOOD SEWER PLANT HOLLYWOOD WASTEWATER TREATMENT PLANT pLLYWoo� DIAMOND OF THE GOLD COAST sI I1 ' F1 4M EVALUATION AND UPDATING OF LARGE USER WASTEWATER TREATMENT AGREEMENTS 0 0 n s EXHIBIT p CITY OF HOLLYWOOD, FLORIDA EVALUATION AND UPDATING OF LARGE USER WASTEWATER TREATMENT AGREEMENTS CONTENTS PAGES 1-25 OMITTED AS THEY DO NOT PERTAIN TO ALLOCATIONS, AS THE FOLLOWING PAGES ARE EXTRACTED FROM A PREVIOUSLY ISSUED DRAFT REPORT PAGE SECTION III: EXPENDITURE ALLOCATIONS 26 Sewer Treatment Plant 27-30 Sewer Collection 31-33 Utility Administration 34-37 Utility Accounting 38-41 Customer Service 42-43 General Fund Administration 44-54 SECTION IV: DEBT SERVICING 55 1962 Sewer Revenue Bonds 56 ...� 1967 Sewer General Obligation Bonds 57-58 1971-A Water and Sewer Revenue Bonds 59-60 Proposed $91,000,000 Wastewater Revenue Bonds 61-62 Depreciation on Plant for Facilities Constructed From Other Than Bond Proceeds 63-66 SECTION III: EXPENDITURE ALLOCATIONS i. This section demonstrates the methodology used in allocating operating and administrative costs: • To the wastewater division. • To the City. • To the Large Users. The costs requiring allocation are: • Sewer Treatment Plant Expenses (Schedules 1 and 2) (pages 27-30) • Sewer Collection Expenses (Schedule 3) (pages 31-33) • Utility Administration Expenses (Schedule 4) (pages 34-37) • Utility Accounting Expenses (Schedules 5 and 6) (pages 38-41) • Customer Service Expenses (Schedule 7) (pages 42-43) • General Fund Administration Expenses (Schedule 8) (pages 44-54) 26 r - CITY OF HOLLYWOOD, FLORIDA EXPLANATION OF ALLOCATION OF SEWER TREATMENT PLANT EXPENSES (APPLIES TO SCHEDULES 1 AND 2) Current Methodology: Sewer treatment plant expenses are allocated between Hollywood and the Large Users based on the percentage of actual flows of each user to the total flows for the wastewater system. See page 28 for actual flows for the fiscal year ended September 30, 1988. Example: Page 28, Line 8 City of Hollywood 4,851 ,843* = 38 .49% Divided by Page 28, Line 9 Total Flows 12 ,607,000* *(0OO's omitted) Proposed Methodology: No change has been proposed to the current methodology. F —27— ALLOCATIGN OF LPF.C< USERS ANT CITY FLOWS :rc[i1 E t MSR TOTAL ACT!!Cd. X T_61 Er FLOWS ^5 OES:SIPTICM FLCMtS !I) IS:E4'AGE VO4D :t?tTf 684.7?..(113 5.47t CITY CF P*!A I.M.;0.:M CM CITY OF AL .,: E 1,113.i$4.%u Ib.IbX CITY OF !!;RAW I ...s .;F ccw;S+A'E FAP% 245re740 1.941 CITY DF F PIEOI.Lil ii!ES i,I6Z. '=,;VD 17.161 c="ALS 7,7w,116,099 61.M CITY OF HOLLYWD 4, !,343,OI1 38.491 TOTALS I.''fi:0,000 -- IA-__x r (1) flCY F!S,FfE G"rTAlhfr Ffr Sur.LE :w FEgIOO lOP)Ir87 TO G9/;J 31 AS ?LrqGA'O IN TiE AR.A fix{ 'Mi. 28— ALLOCATION OF SEWER TREATMENT PUM1 EXPENSES SCHEDULE 2 1 y ACTUAL SEWER TREATMENT ACTUAL ALLOCAIIU1 9/30/88 ........................ OTHER LARGE USERS MOLLYAWD (Colwn 1 x .3881 (Column 1 x .6151 LIME NUMBER DESCRIPTION (Actual F)oec.Page 26) (Actual F1o.a.PaOe 28) ........................... SEWER TREATMENT PLANT (BUDGETARY DIVISION 2201) PERSONAL SERVICES 1 SALARIES AND WAGES 11.341,022 6516.467 3825.355 3 PAID LEAVE 29,457 11.330 18.119 1 ACCRUED LEAVE 9.119 3.537 S.652 5 OVERTIME PAY 41,503 15.975 25.520 SOCIAL SECURITY 10J.133 39.696 13./37 GENERAL PEWS]ON 94.111 36.350 $8.091 1 LIFE INSURANCE 5.898 2.270 3.528 10 HEALTH INSURANCE IS3.076 58.915 91.151 11 DENTAL INSURANCE 5.035 1.938 3,097 12 WORKERS LYJMPENSATILN 11.575 7.131 11.414 13 TOTAL 1.002.129 693.639 1,108,190 ............ ............ .___-------- OPERATING EXPENSES 11 TREATMENT SERVICES 31.500 12.124 19.376 15 ENGINEERING SERVICES 10.651 4.100 6.551 I6 LEGAL SERVICES 51.060 22.655 36.205 �'-•' 11 CLEANING/LAUNDRY 12.304 8.736 7.568 11 VEHICLE RENTAL-CENTRAL 183.456 12.91/ 100.542 20 TRAINING 5,541 2.133 3.408 21 TELEPHONE 4.174 1.607 2.567 22 COMMUNICATIONS SERVICES /,932 1.198 3,031 23 ELECTRICITY 1.291.253 191,003 794.250 2/ WATER 67.200 25.865 41.335 25 GAS 193.02S 1/.295 118.730 26 MSTE DISPOSAL 121.002 46.574 74.428 27 EOUIPMENT MENTAL 1.159 3.256 5.203 21 LIABILITY INSURANCE 55,940 21.531 34.409 30 PROPERTY INSURANCE 100.853 38.018 62.035 31 RAINIENANCE-EOUIPMENT 10.113 3.892 6.221 32 MINTERANCE-IUCHINERY 23.114 8.197 14.217 33 RAIMTERAMCE-BUILDINUS 116 172 274 31 LOT MOWING 16.188 6.346 10.142 3S PRINIM AND BINDING 2.703 1.010 1.663 36 OFFICE SUPPLIES 2.748 1.058 1.690 -29- L ALLOCATION OF SEWER TREATMENT PLANT EXPENSES SCHEDULE 2 I 2 ACTUAL SEWER TREATMENT ACTUAL ALLOCATION 9/30/08 ..............__________ OTHER LARGE USERS LINE NUMBER DESCRIPTION NOLLYNOOD (Colum 1 x .0819 (Colum 1 x .6151 (Actual F1ous.Page 28) (Actual F1ovs,Page 28) ------•----•---^---•-•- SEWER TREATMENT PLANT (BUDGETARY DIVISION 22011 77 NOTOR FUEL/OIL 7,006 08 CONSUMABLE EOUIP/TOOLS . 1.191 09 BUILDING MATERIALS 22.801 8. 90 790 14.017 10 MAINTENANCE-FACILITIES 1.88T 725 1.158 JANITORIAL SUPPLIES 11 199.911 76.958 122.986 19 MEDICAL SUPPLIES 0.090 3.115 177.S17 5 1.978 67 , 10 CHEMICAL SUPPLIES 218 019 11 UNIFORRS 1 65 52. 84.616 IS PROFESSIONAL MEMBERSHIPS 517 020 17 140 51 86 LICFMSES/GERTIFICAiIONS 1,521 585 6 41 TOTAL 2,565.951 987.635 --__._.. _._1.578.016 ------------ CAPITAL OUTLAY ----- 19 FURNITURE/OFFICE EQUIP 695 51 MACHINERY/EOUIPMENT 26B 427 2.065 910 1.155 52 TOTAL ............ 0.... 1.178 - 1.882 57 TOTAL SEWER TREATMENT PLANT - 51,011,110 _ 1.682.452 12,688 688 ............ ......sszss. �y e..zssz:szs. L_ � CITY OF HOLLYWOOD, FLORIDA EXPLANATION OF ALLOCATION OF SEWER COLLECTION EXPENSES (APPLIES TO SCHEDULE 3) Current Methodology: Step 1: The current percentage of allocation was developed in the early 1970's by the then Public Utilities Director. He utilized the following percentage formula: Cost of Collection System Serving Hollywood and Large Users Total Cost of Collection System Step 2: Sewer collection expenses are then multiplied by the percentage developed in Step 1. Step 3: Amount derived in Step 2 is multiplied by the actual flow percentages derived on page 28. Step 4: Hollywood's share is the total sewer collection expense less the amount derived in Step 3 for the other large users. Proposed Methodology: f Mr. Robert Creighton, Public Utilities Director, analyzed the existing sewage transmission mains and pump stations that are dedicated to the Large Users and has determined that this percentage is 18.5% (See pages 31A-B) . The remaining 81.5% is the City's share of the collection system. -31- City of Hollywood Large User Study Determine the percentage of sewage transmission main and pump stations that are dedicated to the Large Users. I. Transmission Mains A. Total City wide mains (as per City of Hollywood) 1. Gravity sewer - 162.5 miles 2. Force main 37.6 miles TOTAL 200. 1 miles B. Large User Mains - dedicated to large user only 1. Forcemain Gravity Hallandale 24,060 l.f. 10,400 l.f. Pembroke Park 12,360 l.f. 4,680 l.f. Miramar 10,800 1.f. - County 7,800 l.f. - Dania 2,100 l.f. 1,200 l.f. Pembroke Pines (*l) 9,072 l.f. - Combined Large User (*2) 15.264 l.f. 5.280 l.f. 81,456 l.f. 21,560 l.f. 15.4 miles 4.1 miles (*l) Assume 10% of this line is dedicated to the City of Hollywood use. (*2) Taft Street line - assumes only 80% used by large users. 2. Percentage of transmission mains dedicated to large users. Total dedicated large user mains - 19.5 miles. Total City of Hollywood mains - 200.1 miles % — 19. 5 — 9.8% 200.1 3. 9.8% of all the City of Hollywood sewage transmission mains are dedicated to the large users. II. Sewage Pump Stations A. Total City wide pump stations - total forty (40) . B. Pump station affected by Large Users either through direct use of requiring City of Hollywood lift station to pump against. -31A- II. Sewage Pump Stations (Continued) Station Total Flow A-1 1.50 MGD(*2) A-12 0.20 MGD(*2) W-27 3.77 MGD(*1) W-15 2.27 MGD(*l) W-30 0.73 MGD(*2) W-11 0.85 MGD(*2) E-8 0.68 MGD(*1) E-6 1.28 MGD(*1) W-14 1.00 MGD(*2) 12.28 MGD (*l) Partially dedicated to Large User flows. (*2) Pumps against Large User flow, therefore, part of 0 & M is Large User. C. Determine % dedicated to Large User. Station L.U. Flows* Total Flow Ratio L.S. E-6 0.52 MGD 1.28 MGD 0.41 W-15 1.17 MGD 2.27 MGD 0.52 W-27 1.17 MGD 3.77 MGD 0.31 E-8 0.68 MGD 0,68 MGD 1_00 2.24 LS *Source City of Hollywood Utilities. D. Assume 25% of the 0 & M cost of the remaining five lift stations are attributable to the Large User system since they must pump against Large User heads. ' 5 lift stations @ 25% - 1.25 lift stations. E. Compute percentage of lift stations dedicated to servicing large users either directly or indirectly. 1. Equivalent Lift Station Directly used by L.U. - 2.24 Indirectly uscd by L.U. - 1.25 3.49 L.S. 2. Total City wide lift station - 40. 3. % - 3.49 - 8.7% 40 III. Determine percentage dedicated to Large Users. A. Transmission main - 9.8% B. Pump Station - 8.7% Total dedicated to Large User - 18.5% -31B- ALLOCATION OF SEWER COLLECTION EXPENSES SCHEDULE 3 1 2 ACTUAL SEWER COLLECTION 9/30/88 ALLOCATION PERCENTAGE ------ ------------ A 8 LARGE USERS HOLLYWOOD LINE NUI03ER DESCRIPTION COL.1 X .185 COL.1 X .815 ---------- ------------------------------------------ ------------ ------------ ------------ SEWER COLLECTION (BUDGETARY DIVISION 2202) PERSONAL SERVICES I SALARIES AND WAGES 1609.799 $112,813 $496,986 2 PAID LEAVE 4,339 803 3,536 3 ACCRUED LEAVE 19,194 3.551 15.643 A OVERTIME PAY 25,816 4,776 21,040 5 SOCIAL SECURITY 41,614 8,809 38.805 6 GENERAL PENSION 47,966 8,814 39,092 7 LIFE INSURANCE 2.496 462 2.034 8 HEALTH INSURANCE 80,486 14,890 65,598 9 DENTAL INSURANCE 2,475 458 2,017 10 WORKERS COMPENSATION 9.028 1,670 7,358 ------------ --------------------------- 11 TOTAL 849,215 157,105 692,110 ----------- --------------------------- OPERATING EXPENSES 12 CLEANING/LAUNDRY 4,901 907 3,994 13 VEHICLE RENTAL-CENTRAL 147.276 27,246 120,030 14 TRAINING 2,904 537 2,367 IS TELEPHONE 21,743 1,022 17.721 16 COMMUNICATIONS SERVICES 9.029 1.670 7.359 17 ELECTRICITY 152,760 28,261 124./99 18 WATER 20,839 3,855 16.984 '*•*�' 19 LIABILITY INSURANCE 25.677 1,750 20.927 20 MAINTENANCE-EOUIPMENT 7.228 1.337 5,891 21 MAINTENANCE-MACHINERY 1.871 346 1,526 22 LOT MOWING B.181 1,569 6,912 23 OFFICE SUPPLIES 94 17 77 24 MOTOR FUEL/OIL 89 16 73 25 CONSUMABLE EQUIP/TOOLS 6,432 1.190 5,242 26 BUILDING MATERIALS 1.6/6 305 1,3/1 -32- i ALLOCATION OF SEWER COLLECTION EXPENSES SCHEDULE 3 1 2 ACTUAL SEWER COLLECTION 9/30/88 ALLOCATION PERCENTAGE ------------ ------------ A 8 LARGE USERS HOLLYWOOD LINE NUMBER DESCRIPTION COL.1 X .185 COL.1 X .815 ---------- ------------------------------------------ ------------ ------------ ------------ SEWER COLLECTION (BUDGETARY DIVISION 2202) 27 MAINTENANCE-FACILITIES 34.508 6,384 28,124 28 MAINTENANCE-MAINS 6,739 1,247 5,492 29 MAINTENANCE-SERV CONN 5,370 993 4,377 30 JANITORIAL SUPPLIES 1,028 190 $38 31 MEDICAL SUPPLIES 38 7 31 32 CHEMICAL SUPPLIES 2,799 518 2.281 33 UNIFORMS 935 173 762 ' 34 LICENSES/CERTIFICATIONS 868 161 707 ------------ -------- 35 TOTAL 463,256 85,702 377,554 CAPITAL OUTLAY 36 MOTOR VEHICLES 26.497 4.902 21,595 37 MACHINERY/EQUIPMENT 1,804 334 1,470 ------------ --------------------------- 38 TOTAL 28,301 5,236 23,ue5 ------------ --------------------------- 39 TOTAL SEWER COLLECTION $1,340,772 S248,013 51,092,729 —33— CITY OF HOLLYWOOD, FLORIDA EXPLANATION OF ALLOCATION OF UTILITY ADMINISTRATION EXPENSES (APPLIES TO SCHEDULE 4) Current Methodology: Step 1: Expenditures are first allocated between water and sewer based on the following formula: Total Sewer Treatment and Collection Expenses ------------------------------------------------------- Total Sewer Treatment and Collection Expenses Plus Total Water Treatment and Distribution Expenses Step 2: The result in Step 1 is then multiplied by: Cost of Collection System Serving Hollywood and Large Users ----------------------------------------------------------- Total Cost of Collection System (Step 1 in the Sewer Collection Expenses, Page 31) Step 3: The result in Step 2 is then multiplied by the actual flow percent- age derived on page 28. Proposed Methodology: Step 1: Utility administration costs must be allocated between the two divisions. The allocation percentages between the divisions were determined by Mr. Robert Creighton, Public Utilities Director based on the percentage of time each individual spends in each division: Example: Page 36, line 1, Utilities Director, $64,595 Column: 2 Water .50 4 Sewer .50 r +� Step 2: Personnel costs were allocated based on the formula: Total Salaries and Wages by Division ----------------------------- ------ Total Salaries and Wages Example: Total salaries and wages - sewer, page 36, line 7, column 5 $ 51 ,883 -------- - 0.3624 Total salaries and wages, page 36, line 7, 143,149 column 1 See reference (2) , page 36, line 7, columns 2 and 4. -34- Step 3: Operating expenses were allocated based on the formula: Average of the Salaries' Percentages ------------------------------------ Number of Salary Categories Example: Total Sewer Salary Percent- ages, Page 36 , Lines 1-6, Column 4 0.5 + 0.6 + 0.05 + .50 + .05 + 0.25 --------------------------- ---------------------------------- a 0.325* Total Number of Salary Categories, Page 36 6 *Line 8 -35- ' �lp� P p poi p p O mON 10 ' tr`JNt��J N� P� ' d �00i ' NO 0 OI OUE ¢ b 0 1 Uw vl O) b ^ NN N m « m b b O0 W f' O W W a:J aJw, O C)ogN �� q Z 6J 7 p WO,ap dddddd d0 0dd0dddd0d ddd ddddd0dddddd d a a U 00 ca N ?(O tV iOJI I � '^ N A1 m J A m Z <. 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The only expenditure item that is allocated to the Large Users is audit services, as all other expenditures are deemed immaterial in relation to the Large Users. Proposed Methodology: Step 1: Expenditures are first allocated between water and sewer based on the following formula: Total Sewer Treatment and Collection Expenses -------------------------------------------------------- Total Sewer Treatment and Collection Expenses Plus Total Water Treatment and Distribution Expenses Example: Total sewer, page 41 , line 61, column 3 $5,711 ,912 ------ _ .6107 Combined water and sewer, page 41, line 9,353,016 column 8 61, column 7 Step 2: The expenditures are allocated to the City and the Large Users based on the following formula: Total Sewer Treatment Times Flow Percentages Plus Total Sewer Collection Times Use Percentages ------------------------------------------------- _1C Total Sewer Treatment and Collection Expenses Example: City's Allocation: Total sewer treatment x flow percentages page 41, line 61 page 28, line 8 $4,371 ,140 x .3849 = $1 ,682,452 Plus total sewer col- x share of collection lection, page 41, system, page 31 line 61, column 2 $1,340,772 x .815 1 ,092 ,729 Sub-Total 2,775,181 Divided by: total sewer, page 41, line 61, column 3 r 5,711,912 Page 41, Line 61, Column 11 = .4859 The only expenditure item that is allocated to the large users is audit services, as all other expenditures are deemed immaterial in relation to the large users. -38- I J O O � t eiW N _ w Z � � r p w i W W VI t S Z p L t r � F J O _ w r � m I� N �• N � P �11: yS < t = O o — — o — — e m m N s x m N �• i ~ Q m m o e e e e e o e o e e m e O m e O e e e m m m e e O - - - - - -- - - - - - ry i x w - M O M V O O O O m O O O O O O O O O O m e O O O O O O o o e O O i e _ _ w � � �• N ry ry � u •- — •v _ N =Z y y r 6 C K ry p • t W W N 2 J r W •�j( `� J ` pG yy Z u 2 � � r � r < VOI • r Ky , ' i — er ,� m N W F m e — r ^ .. - - - •� — ev ry ry ry ry ry •v ry w �• � •n e -39- - o^z evoeveeo°ee voeee °eeeeeoeeeeeeeaeeeee e°ee0e°eeeeec; c v eeveee es - s eeeeeeeeeee e "3 eo o eC; c eci eeee Oeeeeeeeeeeeeeeeeeeeeeeeo ~ O O o o e O O O o o e N Q ' f � m i Y O O � apap]]N i �• i_ O i i� — ry InU _ 'z U fi z v`� Naib �7a"au��cg '4 - -- `a2 Y _ J -40- c�3 &c�jj� 2 j/ ■ ; : :: : :: :: :: :: : _ : : . . § § . _\ ! ! ! 27c ! --!! lE : 3 . Ct - - . ■: ; - - � -- : , : : • . , : ! k ! - �� 3§2 , � - - „° �aa ■ �« 5 % � ®� a ; � r Kaz ■ = � - §| ; � §aaa ■ ■ ! 22! ■ E= : § . �� „ « � , -4l- � � CITY OF HOLLYWOOD, FLORIDA EXPLANATION OF ALLOCATION OF CUSTOMER SERVICE EXPENSES (APPLIES TO SCHEDULE 7) Current Methodology: Expenditures are first allocated between water and sewer based on the formula: Total Sewer Treatment and Collection Expenses -------------------------------------------------------- Total Sewer Treatment and Collection Expenses Plus Total Water Treatment and Distribution Expenses None of these expenses are allocated to the Large Users as amount is immaterial. Proposed Methodology: No change has been proposed to the current methodology. P —42— M F 6 N N J � x i 7 ry W � O j -4 3- r CITY OF HOLLYWOOD, FLORIDA LARGE USER AGREEMENTS ALLOCATION OF GENERAL FUND ADMINISTRATION EXPENSE (APPLIES TO SCHEDULE 8) Present Methodology: Step 1: General Fund Administration expenses are currently allocated to water and sewer at a flat rate of 4.52. This percentage was developed in 1972 based on the 1971 net book value of the utility system (gross cost less accumulated depreciation) divided by the 1971 assessed valuation of all property in the City of Hollywood. Step 2: Allocation to Large Users and the City based on flow percentages. Proposed Methodology: Although the present methodology was approved by the court in Case #78-14562 (Judge Farrington) in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida in the matter of the City of Hallandale, a Florida Municipal Corporation, Plaintiff vs. City of Hollywood, a Florida Municipal Corporation, Defendant, dated April 13, 1982 (court decision) , it was decided to analyze each segment of the general fund and establish an allocation method that addresses the relationship with the utility fund. Through September 30, 1991, general fund administration expense will be allocated according to Page 53. Commencing October 1, 1991, the general fund administration expense will be comprised of two components : (A) Departmental allocations as detailed on Page 54b ,R plus (B) Payment in lieu of taxes for police and fire protection as detailed on Page 54c The departmental allocations will be updated periodically. References: (1) City Clerk - Total, $169,043 (Page 53, Line 3, Column 1) (a) The election costs of $14,814 were deleted pursuant to the court decision. (b) As to the remaining costs of $154,229 (page 53, line 3, column 3) , the allocation percentage was based on the average of the following two formulae: (i) Number of water and sewer ordinances and resolutions passed in fiscal 1987 14 — 5.9X Total number of ordinances and budget resolutions passed in fiscal 1987 236 -44- (ii) Total fiscal 1988 water and sewer oper- ating budget (budget page 167) — $17,266,000 ---------- — 20. 35% Total fiscal 1988 budget (budget page 1) 84,859,700 Average of (i) and (ii) 5.93% + 20.35% ------------- — 13.14%* 2 �s *Page 53, line 3, column 4 (2) Code Enforcement - Total, $547,692 (Page 53, Line 5, Column 1) Omitted as there is not discernible relationship with water and sewer utilities. (3) Finance Administration - Total, $234,601 (Page 53, Line 8, Column 1) (a) The first step was to remove the salaries and wages and related personnel costs of the Accountant III and Senior Accounting Clerk positions and reallocate them to the general accounting division of finance based on the following formulae: Accountant III and Senior Accounting Clerk salaries and wages $34,945 + $16,596 ------------------------------- ----- ----------------- — 38.19% Total finance administration salaries $134,976 and wages (b) Removed 38.19% of personnel costs of $36,409 which equals $13,905. (c) Total salaries and wages and personnel costs removed were $34,945 + $16,596 + $13,905 which equals $65,446 (page 53, line 8, column 2) (d) Step two was to allocate the remaining costs based on the following formula: Total fiscal 1988 water anti sewer oper- ating budget (budget page 167) $17,266,000 ---------------------------------------- — ----------- — 20.35%* Total fiscal 1988 budget (budget page 1) 84,859,700 — *Page 53, line 8, column 4 (4) Revenue Accounting - Total, $55, 057 (Page 53, Line 9, Column 1) Omitted as there is no discernible relationship with water and sewer utilities. (5) Engineering - Total, $1,759,094 (Page 53, Line 14, Column 1) (a) Omitted building inspection costs of $929,597 and traffic engineering costs of $45,901 for a total of $975,498 (page 53, line 14, column 2) as there is not discernible relationship with water and sewer utilities. -45- (b) Engineering administration of $783,596 (page 53, line 14, column 3) allocated based on the following formulae: 1. Multiplied work hours available in a year (2,080) by percentage of hours devoted to the Utility Department (as submitted by Marshall Bergacker, Director of Engineering) . 2. The resultant allocated hours were then multiplied by each employee's hourly rate. 3. Divided the total derived in step (b) 1. and 2. above of $211,136 ($98,500 water, $112,636 sewer) by the total combined hourly rate of entire division of $334.7 x 2,080 hours, or $696,176 which equals 30.32% (page 53, line 14, column 4) ; 14.14% water and 16.18% sewer. 4. 30.32% of $783,596 equals $237,586 (page 53, line 14, column 5) . 5. 16.18% of 30.32% equals 53.35% (page 53, line 14, column 6) . 6. 53.35% of $237,586 equals $126,752 (page 53, line 14, column 7) . 7. Percentage of costs allocable to the Large Users and the City based on expenditure account allocation, Schedule 6, page 41, line 51, columns 10 and 11. (6) Leisure service, sanitation, public works, human services, interfund transfers and non-departmental omitted as there is no discernible relationship with water and sewer utilities (page 53, line 18-22 and 24) . Debt service (page 53, line 23) allocated in Section IV of this report. (7) City Commission - Total, $225,576 (Page 53, Line 1, Column 1) Allocated based on the average of the following two formula: (a) Allocation percentage based on number of fiscal 1987 agenda items related to water and sewer utilities 46.82 --------------------------- -------------------- ----- - 6.77% Total number of fiscal 1987 agenda items of the 718 ---- City Commission meetings (b) Total fiscal 1988 water and sewer budget (budget page 167) $17,266,000 ---------------------------------------- ------ --- -- - 20.35% Total fiscal 1988 budget (budget page 1) 84,859,700 ----- Average of (a) and (b) 6.77% + 20.35% ------------- - 13.56% Page 53, Line 1, Column 4 2 -� -46- (8) City Manager - Total, $531,101 (Page 53, Line 2, Column 1) Allocated based on the following formula: Total fiscal 1988 water and sewer budget (budget (budget page 167) $17,266,000 ------------------------------------------- ---- ----------- — 20.35% Total fiscal 1988 budget (budget page 1) 84,959,700 — Page 53, Line 2, Column 4 (9) Legal - Total,$438,354 (Page 53, Line 4, Column 1) Allocated based on the following formula: Number of hours devoted to water and sewer utilities (submitted by legal department) 1,560 ----------------------------------------------- ----- --------- — 15%* Number of attorneys times number of work hours available in a year 5 x 2,080 *Page 53, Line 4, Column 4 (10) Grant Development - Total, $76,690 (Page 53, Line 6, Column 1) Allocation percentage based no estimated man hours 1,560 spent on water and sewer related items to total --------- — 15%** number of man hours 5 x 2,080 **Page 53, Line 6, Column 4 (11) Personnel - Total, $412,007 (Page 53, Line 7, Column 1) Allocation percentage based on amount for water and sewer personnel over the total amount for personnel for fiscal 1988. Utilities Administration (a) $ 187,005 Water Treatment Plant (a) 946,932 Water Distribution (a) 941,946 Sewer Treatment (a) 1,802,129 Sewer Collection (a) 849,215 4,727,227 Divided by Total Personnel Amounts + $51,131,468 Equals 9.25% Page 53, Line 7, Column 4 (a) Financial Statement, Page D-11 47 (12) General Accounting - Total, $545,354 (Page 53, Line 10, Column 1) Step 1: General accounting allocation percentage: Number of fiscal 1987 water and sewer check register transactions 8,002 -------- ------------------ ------ - 17.93% Divided by the total number of fiscal 1987 check register transactions 44,630 Step 2: It was decided to allocate certain items within general accounting based on an investment percentage developed as follows: Average water and sewer utility system investments 39,439,523 ------- - ------------------------------ ---------- - 32.51% Average total City investments 121,321,625 Beginning fiscal 1988 water and sewer investments (9/30/88 financial state- ments, page B-20) $ 38,933,748 Ending fiscal 1988 water and sewer in- vestments (B -20) 39,945,298 78,879,046 Divided by 2 2 ----- ------- Equals average fiscal 1988 water and sewer utility system investments $ 39,439,523 Beginning total City investments (B-20) $116,208,407 Ending total City investments (B-20) 126,434,843 242,643,250 Divided by 2 T 2 ------------ Equals average total City investments $121,32.1,625 Step 3: The Senior Accounting Clerk position in general accounting is allocated 50% based on personnel function (see reference 11) and 50% based on the general accounting function. Salary $ 55,347 Fringe benefits 17,533 ----- Total $ 72,880 50% Personnel $36,440 x 9.25% - 3,371 50% General Accounting $36,440 x 17.93% - 6,534 -48- Step 4: The bookkeeping clerk position in general accounting is allocated as follows: Salary $ 91,820 Fringe benefits 33,867 Total $125,606 20% Investments $25,121 x 32. 51% — 8,167 20% Personnel 25,121 x 9.25% — 2,324 60% General Accounting 75,364 x 17.93% — 13,513 Step 5: Two positions from finance administration are added to the general accounting department for allocation purposes. See references 3 a, b and c. The Accountant III position is allocated as follows: Salary $ 34,945 Fringe benefits 9,428 Total $ 44,373 100% Investments $44,373 x 31.51% — 13,982 The Senior Accounting Clerk position is allocated as follows: Salary $ 16,596 Fringe benefits 4,477 Total $ 21,073 50% Investments $10,537 x 32.51% — 3,426 50% General Accounting $10,536 x 17.93% — 1,889 Step 6: Overall allocation of general accounting is made as follows: Total general accounting budget (page 53, line 10, column 1) $545,354 Less 50% Senior Accounting Clerk (Step 3*) (36,440) Less 40% Bookkeeping Clerk (Step 4*) (50,242) Plus 50% Senior Accounting Clerk from finance administration (Step 5*) 10,536 Total adjusted general accounting to be allocated based on general accounting percentage 469,208 x 17.93% — $ 84,129 -49- L� 50% Senior Accounting Clerk (Step 3*) $ 36,440 20 X Bookkeeping Clerk (Step 4*) 25 ,121 Total allocated on personnel percent- 61.561 x 9.25X - 5,694 age 20% Bookkeeping Clerk (Step 4*) 25,121 100% Accountant III from Finance Administration (Step 5*) 44,373 50% Senior Accounting Clerk from Finance Administration (Step 5*) 10,537 Total allocated on investment percent- age 80,031 x 32.51% - 26,018 Total (Page 53, Line 10, Column 3) $610,800 $115,841** *Page 48 **Line 10, Column 5 Weighted Percentage $115,841 + $610,800 - 18.97% Page 53, ' Line 10, Column 4 (13) Data Processing - Total, $614,089 (Page 53, Line 11, Column 1) (a) Identified items specifically related to water and sewer of: (supplied by data processing administrator) . Computer Operator I spends 6 hours of a 16-hour shift on water and sewer. e... Computer Operator I salaries and benefits total $59,922 times 6/16 equals $22,471. The Data Processing Administrator and Clerk III spends 10% of their time on water and sewer utilities. Their total salaries and benefits of $103,329 times 10% equals $10,333. $22 ,471 + $10,333 - $32,804. (b) Total data processing of $614,089 less specific allocations of $32,804 (Step a) equals $581,285. $581,285 times general accounting percentage of 17.93% [see reference (12) ] equals $104,224. (c) $104,224 + $32,804 - $137,028 (page 53, line 11, column 5) . (d) $137,028 of a total data processing budget of $614,089 equals 22.31% (page 53, line 11, column 4) . -50- 1� (14) Purchasing - Total, $282,463 (Page 53, Line 12, Column 1) Allocation percentage based on number of fiscal 1987 681 purchase orders issued for water and server divided — 14.15% by total number of purchase orders issued in fiscal 4,814 Page 53, 1987 Line 13, Column 4 (15) Retirement Administration - Total, $11,500 (Page 53, Line 13, Column 1) Allocation percentage based on number of fiscal 1987 210___ — 35.84X water and sewer employees to total number of fiscal __ 3, 1987 City employees, excluding police and fire Page 5 Line 53, Column 4 (16) Growth Management - Total, $579,922 (Page 53, Line 15, Column 1) An allocation of costs of growth management was made due to the fact that this department impacts on the water and sewer utilities infrastructure whenever a zoning change is made. Allocation based on the following formulae (supplied by Assistant Director of Growth Management) : ` (a) 10% of the assistant planner's time is spent on water and sewer utilities. 10% of salaries and benefits of $72,850 equals $7,285. (b) 1% of the assistant growth director's time is spent on water and sewer utilities. 1% of salaries and benefits of $64,890 equals $649. (c) $7,285 + $649 — $7 ,934 (d) $7,934 divided by total growth management personnel costs of $579,922 equals 1.37% (page 53, line 15, column 4) . (17) Police and Fire - Total, $21,967,601 and $12,404,796 (Page 53, Lines 16 and 17, Column 1, Respectively) An allocation of costs was made pursuant to the court decision. Allocation percentage based on the cost of the plant (gross of accumulated deprecia- tion) , adjusted for the consumer price index, over the total tax roll for the City of Hollywood. (a) Multiplied book value of system at September, 1971 of $34,150,876 times 2.66 equals $90,841,330 (see page 52) . (b) Net plant additions from September, 1971 through September, 1988 equal $63,448,507. (c) 1971 costs with inflation factor of $90,841,330 plus net plant additions with inflation factor of $94,327,523 equals $185,168,853. (d) Adjusted plant costs of $185,168,B53 divided by the September, 1988 property tax roll of $3,918,695,112 equals 4.73%. 51- CITY OF HOLLYWOOD, FLORIDA PLANT COSTS ADJUSTED FOR INFLATION FACTOR CHANGE IN ENR (1) PLANT CONSTRUCTION ADDITIONS TOTAL PLANT YEARS COST INDEX FOR YEAR ADDITIONS Inception - 1971 2.66 34,150,876 90,841,330 1972 2.4 396,572 951,773 1973 2.23 248,413 553,961 1974 2.00 5,824,016 12,113,953 1975 1.91 4,789,907 8,380,587 1976 1.75 133,689 233,956 1977 1.84 27,462,316 45,038,198 1978 1.52 272,990 414,945 1979 1.4 887,633 1,242,686 1980 1.34 342,820 459,379 1981 1.28 (28,246) (36,155) 1982 1.18 2,503,019 2,953,562 1983 1.11 7,911,968 8,782,284 1984 1.00 1,118,521 1,208,003 1985 1.07 2,812,051 3,008,895 1986 1.05 2,025,516 2,126,792 1987 1.03 4,879,418 5,025,800 1988 1 1,868,904 1,868,904 97,599,383 94,327,523 -�-a— 90,841,330 185,168,853 (1) Engineering News Record -52- • m m w w rt W r 00 • � w0 aosx ,a m • a , .n �d( mina�z nrydd a m m N�a e w Os O N r m o 0 Ow rt w ym x�es �$o r a . . . . w OQ000 N �p ¢¢ a mOrt ��m n N N a�Vm nrhN . . • . • • . . b • OUv OOJJ o w N 6O NOn z Ow Z � a"OgggF d 000000 n 00 0 deae K 0 0 F Mee 0 oat O m ca u 0000ao 0 000000 0 0 0 0 0 0 0 0 o qo N U 00- mnnnnn u nnnnnn 'u2 m n m m n m m n n n n e u%o O W a �f p W o a w 8om� o » x N xax ��Q LL W W O 0 LL Ot���w¢ y N'NeeeMM n nt f;RN ry a+a< ae be ae ae d tl' d atF w O ta '�n1$88 r 81AVI 1n1888 88ngm �+ . U ¢ v 0Oi riQnron a Rom�e� v a m m m m o o m . d . . � S G Jafa J R J Sm & N N 'n'n Ov.' V vryOry Cl ifiV mlm'1 YI �aOV r � Y VNb q • n n n O m � � 0 O1 n p 0 b.•v� a 6 - l Ecg. cnNgE `a $ �g 3 w i �e o oz wE0 60Z �= a EEeEc. m.E�m7SEu . fw w 0zu° u .f .. 38a333 w Police and Fire Based on the settlement negotiations with the Large Users, the following allocation methodology was formulated: The wastewater treatment plant and the wastewater collection system costs were indexed by the Engineering News Record Index to develop a current value. These costs will be re-indexed on an annual basis. 100% of the indexed cost of the wastewater treatment plant plus 18.5% of the wastewater collection system indexed cost equals the indexed value. Accumulated depreciation was imputed at the same ratio as actual book accumulated depreciation to book costs. This derived assessed value is then multiplied by the City's property tax millage rate (less debt service component) (to be updated annually) times a factor of 1.5. Annual additions to the costs of the wastewater treatment plant and collection system will be included in the indexing of the historical costs, with the exception of the proposed plant rehabilitation and expansion work. In addition to the payment in lieu of taxes calculated herein, an additional kN amount will be added for cost increases in police and fire expenditures computed as follows: Example: Actual Police and Fire Expenditures: 1989 $24,432,927 1988 21,967,601 Increase $ 2 ,465,326 Percentage Change 11.22% Hypothetical payment in lieu of taxes $ 528,757 (Page 54c) Plus percentage change add-on: 11.22% x $528,757 equals 59.327 (Page 54c) Total payment in lieu of taxes $ 588,084 -54a- 0 W L}16 e<m r l hl < I wl Q `xaV y mn ^ n ry mary m � r r r r r i r r r r I „I O� I ♦I o�l nnnun W m m m m m m m m m m m m m m m m m m m m m m .4{SIr�1ela.a.�11 j'{.IM,�IIgO .�:ti'M L' VI �r w SV^ K iSf $ U a y p V Y n wy boo !+i'* .. o ow '. •. ..rv..n n o o e o o e a o e ••o U P W . � � g� m ..mm . „ �em mmrrrrrrrr . , r �a1 . tiL •s.J '1f41 '.•t.. �' .. .. �� " M . o n H d . m rC YC G C CITY OF HOLLYWOOD, FLORIDA EXAMPLE OF ALLOCATION OF GENERAL FUND ADMINISTRATIVE COSTS TO THE WASTEWATER DIVISION OF THE WATER AND SEWER FUND ORIGINAL INDEXED COST VALUE LINE NO, 1. Cost (Page 54e) $44.9i 1� 1,468 $90,982,110 2. Accumulated depreciation $13, 162,219 3. Imputed accumulated depreciation (Page 54e) 27 , 546,582 63,435,528 4. Taxable value of wastewater system 5. Millage rate (less debt service) times 1.5 8.33535 6. Sub-total payment in lieu of taxes (Line 5 X Line 6) 528,757 7. Percentage change increase in police and fire (Page 54a) 59,327 8. Detailed calculations of departments other than Police & Fire 565.222 $ 1,153,306 9. Total payment in lieu of taxes 10. Allocation of payment in lieu of taxes based on flows to: A. Hollywood @ 38.49 of Line 9 $ 443.907 B. Large Users other than Hollywood @ 61.51 of Line 9 $ 709,399 -54c- r CITY OF HOLLYWOOD, FLORIDA INDEXED SEWER PROPERTY, PLANT & EQUIPMENT (1) (2) (3) (4) INDEX INDEXED ACCUMULATED YEAR ACQUIRED COST FACTOR COST DEPRECIATION SEWER TREATMENT PLANT: 1931 $ 1,943 24.70 $ 47,992 $ 1,943 1956 339,207 6.46 2,191,277 285,166 1960 6,385 5.43 34,671 4,616 1961 93,392 5.28 493,110 - 1963 10,277 4.96 50,974 10,277 1966 6,438 4.39 28,263 3,688 1968 5,898 3.87 22,825 3,983 1969 2,067,740 3.52 7,278,445 977,869 1970 2,516,095 3.23 8,126,987 1,293,341 1971 279,075 2.83 789,782 133,050 1972 107,758 2.55 274,783 44,383 1973 4,469 2.34 10,457 4,280 1974 3,888 2.21 8,592 3,871 1975 21,852 2.02 44,141 21,852 1976 23,737,923 1.86 44,152,537 6,916,814 1977 39,805 1.73 68,863 39,805 1978 933,209 1.61 1,502,466 37,391 1979 413,749 1.49 616,486 225,072 1980 62,002 1.38 85,563 37,883 1981 187,145 1.26 235,803 43,058 1982 210,867 1.17 246,714 90,623 1983 553,798 1.10 609,178 93,468 1984 926,013 1.08 1,000,094 131,958 1985 545,929 1.07 584,144 60,264 1986 95,726 1. 13 108,170 37,461 1987 99,271 1.09 108,205 24,519 1988 5,904,804 1.04 6, 140,997 276,370 1989 503, 248 1.00 503,248 8,875 SUB-TOTAL 39,677,934 75,364,767 10,811.880 Accumulated Depreciation Ratio Column (3)/(1) - 1.90; Column (4) x 1.9 20,542,572 SEWER COLLECTION SYSTEM: 1954 187,053 7.12 1,331,817 158,605 1955 1,631,215 6.77 11,043,326 1,424,256 1956 996,353 6.46 6,436,440 819,810 1957 233,875 6.18 1,445,348 189,170 1958 558,936 5.89 3,292,133 459,215 1959 764,874 5.61 4,290,943 554,980 1960 52,407 5.43 284,570 37,885 1962 46,001 5.13 235,985 28,420 1963 2,703,601 4.96 13,409,861 1,826,879 1964 255,755 4.78 1,222,509 159,539 1965 10,002 4.60 46,009 5,980 1966 561,739 4.39 2,466,034 444,145 1967 160,463 4,18 670,735 116,282 1968 210,838 3.87 815,943 109,494 -54d- L� r CITY OF HOLLYWOOD, FLORIDA INDEXED SEWER PROPERTY, PLANT 6, EQUIPMENT (CONTINUED) (1) (2) (3) (4) INDEX INDEXED ACCUMULATED YEAR ACQUIRED COST FACTOR COST DEPRECIATION SEWER COLLECTION SYSTEM: 1969 424,045 3.52 1,492,638 224,482 1970 2,385,287 3.23 7,704,477 1,103,823 1971 285,004 2.83 806,561 127,658 1972 107,051 2.55 272,980 83,826 1973 43,104 2.34 100,863 39,613 1974 3,741,988 2.21 8,269,793 1,395,320 1975 4,045,665 2.02 8,172,243 1,780,864 1976 61,561 1.86 114,503 52,765 1977 921,815 1.73 1,594,740 283,131 1978 66,978 1.61 107,835 42,519 1979 9,794 1.49 14,593 5,613 1980 176,951 1.38 244,192 40,633 1981 55,093 1.26 69,417 12,605 1982 2,126,289 1.17 2,487,758 376,021 1983 2,470,077 1.10 2,717,085 366,006 1984 930,996 1.08 1,005,476 188,730 1985 628,460 1.07 672,452 65,121 1986 751,533 1.13 849,232 118,949 1987 366,009 1.09 398,950 45,231 1988 297,796 1.04 309,708 14,660 - � 1989 _ 20,918 1.00 20.921 2. 303 SUB-TOTAL 28,289,526 84,418,070 12,704,533 PERCENTAGE ATTRIBUTABLE TO LARGE USERS f OTHER THAN HOLLYWOOD 18. 5% 18.5% 18.5% SUB-TOTAL _ 5,233,562 15,617,343 2,350,339 Accumulated Depreciation Ratio Column (3)/(1) - 2.98; 7.004.010 Column (4) x 2.98 TOTALS $44, 911,468 $90,982, 110 $27,546,582 -54e- SECTION IV: DEBT SERVICING This section illustrates the methodology and formulae used in allocating debt service costs: • To the City. • To the Large Users. Based on actual flows (projected at time of report issuance) (Schedule 11) (page 58) for the following present bond issues: • 1962 Sewer Revenue Bonds (Schedule 9) (Page 56) s 1967 Sewer General Obligation Bonds (Schedule 10) (Page 57) • 1971-A Water and Sewer Revenue Bonds (Schedules 12-13) (Pages 59-60) • All future debt servicing requirements applicable to all new bond issues attributable to expansion will be allocated in accordance with the difference between the actual flaws as of September 30, 1989 and the Large User's projected average daily flow for the fiscal year 1999-2000 (we have used the fiscal year 1988 flows for illustrative purposes only) as detailed in Schedules 14 and 15 (pages 61-62) . All new bond issues for upgrading and improvements will be allocated based FI on actual flows. Future transmission projects will be allocated on the proportioned costs based on designed projected flows of the new transmission facilities. And an allocation of annual depreciation on plant for facilities constructed from other than bond proceeds (Schedule 16) (pages 63-66) . -55- SCHEDULE 9 1962 SEVER REVENUE BONDS ALLOCATION OF ANNUAL DEBT SERVICE PAYMENTS ------------------------------------------------ COST ALLOCATED TO PEMBROKE PARK $1'181153 --------------------------------------- ------ ' 18.79% TOTAL EOND PROCEEDS $1,800.000 NOTE; ONLY PEMBROKE PARK SHARES TN THIS DEBT SERVICE PERCENTAGE ANNUAL MONTHLY OF DEBT DEBT DEBT LARGE USERS SERVICE SERVICE SERVICE ------------- -------------- ------------ ------------ HCLLY900D 81.215 1160,196 $13,350 PEMBROKE PARK 18.79% 37,066 3,089 -------------- ------------ ------------ TOTALS =_ _-_-100.00% 1197 62 '-$16.439 -56- 67 Hiz.; SEN. 58LT5AT;ON BDNOS A__3CAtlnt DF AN,N'lh DEBT 5ERVICE PAYMENTS SCHEDULE !0 -------------------------------------- ------ -------------- PERCENT PROJECTED PERCENT ANNUALL----- -------- MONTHLY :A58E J5E;5 TOTAL PLANT PERCENT ANN. DEBT F:ONS 1967 BONDS E DEBT DEBT SC:HED! E :;� SERVICE SER'�10E SERVICE ----------------------------------------------------------------------------------------------------------- i BKU ASD COUNTY S,SUX IUO,UCX S.SOL ,,900 f1.65 DANIA 8,63X 100.00% • 8.63X 34,363 i.564 EF.L:AIIDALE Io.81X 1i0,0X 16.911 bb,93- 5.578 MIRAMAR II.37X 100.001 11.371 45.271 3,773 FE°BRORE PARK 1.967 100.001 1.96.1 7,604 650 PEwBRD1r DINE: 17,16, 100.061 17.19% , B 406 Z,7UO HOLLY41OD 38.551 100.00X 38.S5X 153,496 ------------ 11,191 ----------- -------- TOTAL 100.00X 100.01 0398,175 f33,!81 ----------- -------- F —57— _114 Df HOLLYWDOi'. FLORID^ SCHEDULE 11 DEBT SEAVIZINE B-'-n ON PROJECTED FISCAL YEAR I939 FLOW PERCENTAGES 1989 PROJECTED LINE NUMBER LARGE USER FLOWS (MGD) PERCENTAGE ------------ ----------------- ------------ ------------- 1 BROWARU CCLINTY i.963 5.501 2 DANIA 3.077 E.63'L 3 HALLANDALE 5.995 16.811 4 MIRAMAR (A) 4.055 11.371 5 PEMBROKE PARK 0.692 1.961 6 PEMBROKE PINES 6.128 17.181 _- 1 HOLLYWOOD 13.747 38.551 y 8 TOTALS 35.663 100.005 (A) ANNUAL ADf EAST OF FLAMINGO -58- !9'!-A NATEF 4 SEWER RE'rENUE BONDS CA!C. OF DEBT SCHECULE :. SE-criCE F9RTICIF'ATIOM SERER TREAT"EMT PLANT ME --------------------------------------------------------------------------------------------------------------------------- 11) LHF- ' SERS PE ,:ENT L G. REST AREA FRO:ECTS (4) (5) (6) .ALLOCATED TO 12) (3) it f 2 r3) !COLUMN 4 1 (COL 5112) NON-HCLLYROOD PERCENT (100% - COL. TOTAL COLUMN 5 TOTAL) MONTHLY LARGE USERS OF PLANT HOLLYWOOD PERCENT AMAL DEBT DEBT iFTM; 15:HE.,0LE 13) RETbIL 5HARE SEE'V1CINE SERVICIN6 --------------------------- ------------ ------------ ------------ ------- ---------------------------- 5i:21AR8 O0iY 1.021 2.01 3.651 44E.990 $4,082 BANiA 0.131 4.121 4.251 57,044 4,754 5AL ANDA.c 0. 11 8.041 9.351 112.074 9,340 MIRAtAR 4.521 5.441 10.0% 1-04,488 11,207 - P-MBROKE PA-nK 0.001 0.941 0.94% 12,617 1,051 F_wupG?'E F';4ES 6.2'S1 8.221 14.471 194,216 16.185 SUB-TSTAL 41.691 559,429 46.619 HC'L!YGOCO 0.001 19.441 39.881 58.321 782.771 65.231 ----- ----- ----- ----- ---------- ---------- iOTA- 12.291 41.831 39.8E1 100.001 41.342.200 $111.950 —59— ;c;1 A WATEn 8 SSHE REVENUE BONDS CALC. OF OEBT SC9EDi4E 13 SERV;CE FAR"i:iPAiION SEER TR'EATMEN'. PLANT MCIIFICATIUNS ----------------------------------------------------------------''--------------------------- (A) (C) PERCENT (B) (A I B) LAFcE USE4S iUTAL F".F.NT PERCENT PERCEI;' 14Bi PRUJECiEi FLUWB OF 1471—A OF ISCHED•!LE I!) BONDS (11 PLANT ------------------------ ------------ ------------ ------------ 6P.ONARD COUKTY 5.5'. 47.8 71 2.6 DAN1A 5.631 47.81% 4.121 HALL AND_c 16.811 47.83I 8.041 MIR Alm AR II.371 7.8:I 5,441 FE4BR0!:E FARM. 1.961 47.831 6.94, FEMEROKE PINES 17.19I 47.831 B...i HOLLYWOOD 36.S5I 47.831 18,44, ------------ ------------ TDTA: 100.001 ==47.K! ;) BOHC PAD:EEDS REOUIRED 44,376,20E 6 TOM BOND PFU:EEDS $19,60 .00O —60— C-Y OF NO!!!'iOCD. FLuR!DA SCHEDULE 14 D-F 3ERVICIN5 0) in) (C) iDl 19;' ACTJAL 2iid' (D-A! EACH USER/ !kF.EE 6— FLONE ("SC'! FLOKS (MSG) EXCESS (MSD) TRIAL --------- ----------- ----------- ------------ ---------- DRONARD COU!u Y 1.576 4.200 2.324 15.03I DANiA 2.954 4.700 1.746 HA!_ANDALE 5.190 6.610 0.56 S,Sc1 MiRr.MAR 4.029 5.JOO 1.471 9.521 FE°ERDY.E PARR 0.67! 1.000 0.329 2.131 FEMEROKE FINES 5.926 10.000 4.074 26.351 HOLLYWOOD 13.794 17.9JO 4.656 30.121 ------- ------- -------- -------- 34.540 50.000 15.460 100.0007. (1) COLUMN (Dl REPRESENTS LAPSE L'KP. EXCESS FL 4 REDL'IRcMENTS REFLECTED IN COLUMN (C) DIVINED FY 15.460 MD (2) 1923 ACTUAL ROWS KILL DE SUPPLANTED NI• MOST RECENTLY AVAILABLE DATA AT TIME RELEVANT DENT SERVIC!NO COMMENCES. —61— L� DEST 5..'iiC!NS ON RE610% WASTEWATER E1F'AN3!DN ESTIMATES ES?ICF.TED f!SCP.L YEAF. !989 'oAL_ONASF FLOWS PROPOSE" f9!.000.200 WA57EWATER REVENUE WINDS EIF'ANS"N TO 50 M60 AND REHABILITATION WOR1: --------------------------------------------------------------------------------- SCHEDULE — ------ - (B) (C) (D) (E) (D ! E) (A I TOTAL) (B t TITAI E3TIM4TEC' INCREASED FLOW ESTIMATED DEBT PERCENT FERCENTA6E L DFFT LAR5E USER- ANNUAL SF IV:[: SERVICE TOTAL PLANT FROM !?86 TO DEPT ATTRIBUTED TO ATTP.IEUTED TO FLOWS 2000 SERVICIN6 (1) IMPROVE. WORK (2) EXPAN3!DN i2) (3C4EOULE 11) (SCHEDULE 14) ------------ ----------- ------------- ----------------- ------------ RUARD COUNTY 4.501 15.G31 f%4:,999 $181,322 f46U,6T DANIA 9.611 11.291 . ,.46J 44!,421 346.044 HA:IANOA.E 16.811 5.561 1,G 0,241 859,824 170,417, MIRAMAR � 673,06. 581,57U 291 J92 PEMBROI:E F'AR)' L961 2,131 145,538, IGU,253 KIM PEMWROY.E PINES I1.iS1 26. 51 11656.359 878,749 8D7,640 HDuYWOBC' J5.551 30.!21 1.—.067 !,911,915 ------ ------- 92:,1?2 ----------- 5-----------------TOTAL 100.001 100.001 f8,180,00c, ----------- f ,114,954 f3,065,046 (U TO BE P.DRVED TO AC'!AL DEBT SERV!CINS WHEN F!NALIIED. (2) ALLOCATIONS OF COSTS FOR IMPROVEMENTS AND EIPANSION DETERMINED BY HAIEN f SAWYER. —62— J I I ' I - 1 I ; I I I 1 Z 1 Y9 m 11 I • Z W 1 P 1 M II 1 J 11 1 O y I 1 II 1 � W 1 6 I 1 11 1 1 II 1 1 I 1 1 � 1 1 (L 1 i 1 I 1 O 1 I U ^ 1 If) 1 • Q W I h I h I I I U 2 W M II 1 a C I 1 II 1 1 I I I 1 1 1 I 1 I _ 1 1 LL 1 I I 1 1 J 1 1 z O I 1 ^O U I 1 1 r Q W 1 O O Ifl O O 6 1 W V W 1 O O O O O 1 ¢ G U J 1 1 S J ¢ p 1 1 C9 W W U 1 1 1 1 I I 1 1 I 1 1 1 1 j 1 1 1 1 I 1 1 I 1 1 I I W U I O N ai N Tf u I O W 1 O O O O G O I Ll W C Q I 1 S LL V 1 I W p I ; s i 1 1 _ 1 M Y9 h K O h O LL O 1 Y9 ^ YY 1 H O J 1 J 1 I Q 1 I 1 1 W 1 0 1 S L'J I fC I..- vui 1 1 1 - W 1 ^ W Q 2 1 O N U I U p O 1 4 1 O 1 1 1 S 2 I m W Q = 1 P O I Q 1 2 ¢ 1 1 O W I N N h^ ZE 1 1 M aN ati M u t1 c•] J I O ' S ¢ I 4 1 d W 1 1 W 1 I c G I 1 � ; 1 1 I z ¢ I 1 Q VI I I 1 W o i I T p I ¢ r p W a m U' 1 i t ¢ S ► -63- 4.:O'a7iON OF ANNUAL DEPREC!A'ION ON PLANT FOk SCHEDULE 16 FAC!LiT!Ec CONSTRUCTED FROM OTHER THAN FOND PROCEE:S PAGE ------------------------ ------------ ------------------------ !i93 PERCENT PERCENT; PERCENT :AAcE LEEPS TOTAL PLAN' PLANT OF ANNUAL DEPN FLOWS TOM FAC. ALLOCATION iSCHEDI�E !1 ------------------------ ------------ ------------------------ c a p,RI, C0U4TY 5.437. 7.971 0.431 fn4iA 9.5:". ;.9iZ 0.62X Hr-:A!iDALE 16.1iZ 7.977. 1.34E M!EAMAR 11.67Z 7.97Z 0.931 FE SFOt;E PART; 1.941 7.91Z O.15Z PEMEROt;E FIN" 17.16% 7.9% I.37X HOLLYWOOD 39.49Z 7.971 3.07X ------------ ------------ TDTAL 57.591 4.59% -64- 1� ALLOCATION OF ANNUAL DEPRECIATION ON PLANT FOR SCHEDULE 16 FACILITIES CONSTRUCTED FROM OTHER THAN BONO PROCEEDS PAGE 3 13TH AVENUE TRUNK 8U10 FROM OTHER THAN BOND PRO(EEDS ------------------------------------------------------------------------------------------ A B C 0 MAX PERCENT PERCENT (B I C) LARGE USERS FLOW TOTAL iRUNK TRUNK OF PERCENT OF RATE CAPACITY TOTAL FACILITY ANNUAL DEPRECIATION ------------------------------------------------------------------------------------------ HALLANDALE 12.8 55.65 36.93 39.40% HOLLYWOOD 10.2 44.35 88.33 49.43X 23.0 100.0 8:,.53% ---- ----- ----- ---- ----- ----- -65- ALLOCATION OF ANNUAL DEPRECIATION ON PLANT FOR SCHEDULE 16 FACILITIES CONSTRUCTED FROM OTHER THAN BOND PROCEEDS PAGE 1 I4TH AVENUE TRUNK ------------------------------------------------------------------------------------------ A B C 0 MAX PERCENT PERCENT (B X C) LARGE USERS FLOW TOTAL TRUNK TRUNK OF PERCENT OF RATE CAPACITY TOTAL FACILITY ANNUAL DEPRECIATION ---------------------------------------------------------------------------------------- DANIA 2000 GPM 28.57 3.20 2.291 HOLLYWOOD 5000 GPM 71.43 3.20 0.911 100.00 3.201 -66-