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HomeMy WebLinkAbout1984 Ordinance No. 011I ORDINAOCE NO . 11 SER I E.5 Of 198-4 -- BY AUTHOR! TY COUNCIL BILL NO . 11 I NTRODUCED BY COUOCIL MEJ1BER BRADSHAW AN ORDINAOCE APPROVING AN IIGREl'l'1EN'r WITH THE ME:rROPOL!TllN DENVER SEWAGE DISPOSAL Di srRICT NO. l PROVIDING E'OR SPEX:!AL CONNECTOR STATUS E'OR TIIE er-·' Jf ENGLEWOOD . WHEREAS , a certain portion of northeast l,ng lewood lies in the drainage system that more econanically and convenientl y drains sewage into t he r'etropolitan Denver Sewage Disposa l District No . 1 system ; anJ WHEREAS , the expense to t he City of Englewood in pumping and transferring the s ewage to another drainage system makes said pumping and transfer uneconanical ; NCM , 'l'I-IEREfORE , BE I T ORD/\INED BY Tl-IE cr•ry COUOC!L Of Tl-IE CITY Of ENGLEWOOD , as follows: Section l. That Ci y Council of the City of Englewood hereby approves that documenl titled "r'etropolitan Denver Sewage Di sposal Dist r ict No . l SPEX:11\L CONNEX:TORS AGREEMENT CITY Of ENGLEWOOD " pursuant to the terms and conditions thereof , a copy of which is at t ached hereto , marked Exhibit II , and incorporated herei n by reference . Section 2 . The 1'-1_1yor and the ex officio City Clerk-Treasurer are hereb, autho nzed to s ign said llgreement for a nd on behalf o[ the Cit, Council and the City of El,glewood . lntroduced , read in full , and ssed on (1tst reading on the 5th day o[ March , 1984 . Published as a Bil l for an Ordinance on the 7th day of March, 1984 . Read by title ,no passed on fine'. re:,d1ng on t.he 19th day of March , 198 4. Published by title as Ordina nce N:l . 11 , Series of 1984 , on 21st d ay of March , 1984 . --- /s/ Eugene L. Otis Eug e ne L. Otis , Mayor ll t t e s t : /s/ Ga ry R. Higbee x off ici o City Cle r k-Treasure r I , Ga r y R. Higbee , ex officio Ci t y Cl e rk-Treasurer of the City o[ Eng lewood , Colorado, hereby cer t ify tha t t he a bove a nd f oregoing is a t rue , accura t e a nd canplete copy of the Ordinance passed on [i na l r eading and pu b lished by titl e as ordina nce No . 11 , Serie s o f 19 84 . -- /s/ Ga ry R. ltiqbcc Gary R. Higbee Met rop olitan Denver Sewag e Disposal Dis tri c t No . I SPECIAL CONNECTO RS AGREEMENT C ITV OF ENGLEWOOD EXHIB IT "JI" SPECIAL CONNECTORS SEWAGE TR EATMENT AND DISPOSAL AGREEMENT ENGLEWOOD (herein some times referred to as the Special Connector Agree ment) MAD E ANO DATED as of the day of ______ , 19 __ , by and between the METROPOLITAN DENVER SEWAGE DISPOSAL DISTRICT ND, (herein so metimes refe r red to as the "Dis~rict"l, a public body politic an d corporate, a quasi-municipal distri ~t, and a governmental and politi- cal subdivis i on of the State of Colorado :herein sometimes referred to as th e "State "), an d the CITY OF ENGLEWOOD, Colorado (herein referred to s a "Special Connector," a public body politic and corporate , a municipal or quasi-munic i pal corporation, and a govern mental and po l i ti ca l subdivision of the State). wH EREAS, the District, now situate in the Countie s of Ada ms, Ara pa ho e , Jefferson and the City and County of Denver, within the State, was duly organized on the 15th day of May, 1961, under what i s now Title 32 , Articl e 4, Pa r t 5 of the Colorado Revised St atutes 1973, as fro m ti me to time amended, and its offir.e rs from time to time have be en duly chosen and qualified; and WHEREAS, on the first day of January, 1964, the District entere d into a Sewage Treatment and Disposal Agreement with certain municipalities to provide sewage treatment and disposal ,;hich agre ement is s till in f ull force and effect; and WHEREAS, the District has the power: (al To fix and fro m ti me to time to incr eas e or to de crease rents, rates, fees, tolls, and other charges to the Special Connector for connection with or use of services of the District 's Syste 1<1, including minimu m charges and charges for av ailab ility of servi ce (h ere in so me ti mes designated as "Service Charges" l; (bl To pledge such revenue for t he payment of any securities of the Distri c t; (cl To borrow money in anticipation of revenues, to issue notes to evidence the amount so borrowed, to secure their payment by a pledge of revenues of the District, including, without limiting the generality of the foregoing, proceed; of bonds to be issued or reissued hereafter, an d to issue and tr pledge bonds as ·collateral security for the payment of the notes; a nd I WIIEIIEAS, the Utstrlct was org,111ized fur the acqu isition , oper il- t io n, and mainte nance of a Sewage D·:s posai Sys tem for the int e r ce ption fr om Municipalities , tr ansportation , treatment, purif ication and disposal of sewage and ind ustr ia l waste s in an efficient and economica l manner; and v/HERE AS, the Dist rict has sewage treatment works , interceptor sew e rs and appu rtenanc es thereto; and WHE1 EAS, the District also has the power: (I) To enter , with out an election, into joint operating or serv- ic e contracts and agreeme nts, acquisition, impro vement or disposal con- tract s , or other arrangements for any te rin not exceeding f ift y (50) years with any Mun ic ipality or person concerning sewage faci liti es , sewers , se v,er system, i ntercept ing sewers, pro ject or sewage disposal system, and any wate r an d water rights appertaining thereto, whether acquired by the Distr ic t, or by any publi c body or other person , and to accept grants and cont r I but io ns f ram any public body or other person In connection there - wi t h; ancl v,hen determin ed hy the Goard to he i n the public inter·est and nece ~s.:i r y fur tllc protet.::tiu n of tile public heultll , Lo enter into and tu perfor11 11 wtthout an e l ection , co ntract s an d a~ree 111 ents for any term not excee ding fif ty (50) year s with an y Municip ali ty or person for the provi - si on and ope ration by the llistrict of sewage facil iti es , sewe rs , sewer syst em , inte rcepting sev,e rs, pro ject or sewage dispo sal system to abate or • redu ce the po l l ution of waters or other nuisance caused by discharges of sewage, 1 i quid wastes, sol id wastes, nig ht soil, and industrial wastes by the llu ni cipal i ty or pers on and t he payme nt per·iodical ly by the Municipal- ity or person to the Di str i ct of amounts at l east suffici en t, in the de- termination of the Ooard, to com pe nsat e the Oi strict for the cost of pro- vid i ng, ope rating, and maintaining the sewage facil ities, sewers, sewe r system, in terceptin g sewers, pr oject or sewage di s posa 1 system ser·v i 119 such Municipality or person; and (2) To enter and perform , without an elec t ion , contracts and agreements with any Municipality or person for or concerning the planning, con stru ction , lease, or other acquisition, operation , mai ntenance, i m- provement, equipm ent, dispos al, and the financing of any project, includ - ing but not necessarily limi ted to any contract or agre eme nt for any ter111 not exceedi ng fifty (50) years; and WHER EAS, the Special Connector similarly has the po wer so to co ntract with the District; and WHEREAS, the District cannot finance on satis fa ctory terms the acquisition, operation, an d maintenance of the Sewage Dispo sal System, un - less the District treats and dispose s of the sewage from the Sewer System of the SpeciJl Conne ctor and unless the Specia l Connec•-r i s legally boun d to accept and to pay for such sewa ge treatment and di .,. ,al service by the District; and WHEREAS, the District and t he Sp ecial Connector des ire to pro- vide for financi ng the District 's mon etary and budge t requirements from time to ti me by car, ·act providing for annual ch ar ges (he rein so me ti me s refer red to as "Annual Charges") to be paid by the Special Connector as herein provided , in lieu of Ser~ice Charges unilaterally fixed, charge d , -2- and co 11 ccted by the Di strict i ndependent of any such contract ( exc I ud i ng any Se r vi ce Charge s appertaining onl y to any Int erceptors ), and otherwi se apperta ini ng to the District's Sewage Disposal s,·stem and to the Sewer System of the Speci al Connector; and WH ER EAS , the District and t he Special Connecto r have determine d to enter in to this Ag re emen t fo r t l1e a f or es aid purpose . NOW, THEREFORE, THIS AGREEMENT WITNESSETH: That in considerat i on of t he premises, of the mutual covenants and agreements herein set forth, and of the undertakings of each party to the others , and in order to secure the payment of the operation and main - tenance ex penses of th e District, the payment of the principal of and the interest on the bonds and other obl i gat i ons of th e District heretofore or hereafter i ss ued or otherwise incurred, and the payment of any oth er fi- nancial obligations of the District, the parties hereto , each binding i t - se 1f , its res pecti ve representatives, successors, and assigns, do mutually COVENAIH , UNllEllTAKE, PRO MI SE, ANO AGHEE, as fo llows: AllTICLE I SHORT TITLE, DEFIN IT IONS, ANO INTERPRETATIONS Section 101, Short title, This Agreeme nt may be referred to as the "Special Connectors Agree ment" (herein sometimes design a'.ad as the "Agreeme nt "). Se ction 102. Meanings and Constructions. A. Oefinition!·. The t erms in this se ction defined fo,· al I purposes of this Agreement and of any agreement amendatory hereof or sup- plem ent al hereto or relat ing hereto, and of any instrume nt or document appertaining hereto, except where the ,~ntext by clear imp lication other- wise requires , shall have the me anings herein specified: (l) "Acquire " or "A cquis iti on" means the purchase, conitruction, reconstruction, lease, gift, transfer, assignment, option to pur chase , or grant from the Federal Government , any public body or other pe rson, endow- ment, bequest, de vi se, installation , condemnation, othe r contract, or other acquirement (or any combination thereof} of facili ties, other prop- erty, any project, or an interest t herein, as authorized by th e Act. (2) "Act" mean s the act governing 'the Di strict and authorizing th i s Agreem ent, which act is commonly designated as the "Me tro politan Sewage Disposal Dis t ricts Act of Colorado," was adopted as Chapter 55, Session s Laws of Colorado 1960, was reenacted as Ti tle 32, Articl e 4, Part 5, Colo- rado Revised Statutes 1973, as amended . (3) "Alter" or "Alteration " ap pe rtains to any structure or other Fa - cility which is not completed as a part of the Project or to any enlarge- ment or change of structure or other Facility which enla r geme nt or cha nge is not completed as a part of the Project, but doe s not include an Exten- sion, a reconstruction, replac~•nent, or repair of a part of t he Sys tem acquired as the Project , nor does it include an enlargement or change of the sewage treatment plant acquired as part of the Project, -3- ( 4) "1\nnua I Oudyet " 111eans the budget or the amended budyet for a t iscal Year and adopted by the District or in e ffect pursuant to Section 501 hereof . (5) "An nual Cha rg es" me ans the sums paid or uec o,ning payable to the Dist r ict pu r sua nt to this Ag ree111ent and pur sua nt t o any agree111ent supple- men t al t hereto . (6 ) "Boa rd" or Boa r d of Directo r s" me ans the board of directors of the District. (7) "B ond Qu~stion" mea ns the que sti on aut horizi ng the issu an ce of the District's se,ier acquisit ion bond s and sub111itt ed to th e el ec tors of the Distr ic t at any sp ecial bond e lect io n. (B l "B ond Year" mean s the twelve (12) months co 111m enci ng the sec on d da .1 of April i n any year and er,ding on the first day of Ap ~il of the nex t succeeding year . (Y) "Charg e " me an s ei t he r an Annual Cha r ge or a Service Charge payable to the Di s trict by a Sp ec i al Connec tor. (10) "Cle rk" mean s the clerk , sec retary , or other of f i c ial of a Special Cor.nector who pe rforms duties ordinar i l y per f ormed by a city cle r k , to,in clerk, or secreta ry of a corporation. (11) "Cos t of the Project," or any phrase of s imil ar import , mea ns , in addi tion to the usual conno tat i ons the reof, the cost of Ac quis it ion and equi pmen t of all or any part of the Sewage Disposal System for the Dis- trict and of a l l or any property, ri ghts , easements, pr ivi l ege, ag r ee - men ts, and rr anchise dcc ,ne.d by the Dist r ict to be nece ssary or us ~fu l ;in d convenient t herefor or in connect ion the rew ith, including int erest or discount on bonds , costs of i ss uance of bon ds, eng ineer ing and i nspe ction cos t s and l ega l expense, cost in fina nc i al , pro f ession al , and ot her e st i - mate s and advice, contingenc i es. any administrative, op erating, and other expenses of the District pri or to and during s uch Acquisition . (12) "Deb t Se rvi ce" means , as of any parti cul ar date or co111putation and with res pect to a particu l ar Bond Yea r, i.e. th e twelve (12) month period beginning on the second day of Ap ril in any Fiscal Year and end i ng on the first day of April i n the next succeeding Fi s cal Year , an amount of money equa l to the aggre gate of the foll owing: (a) All interest payable du ring tne Bond Year on all bonds and othu securities of the Dist ri ct outsta nding on the da te of co111p ut a- tion, and (b) The principal amoun t of all bonds and other sec urities of the Dist ri ct outstandin g on the date of co111puta t ion whic h 111 ature during the Bond Year, and (c) All reasonable amou nts re quired fo r depo sit s into any r eserve account or reserve funa created, ac cu mulated, and 111aintained as a continuing reserve to prevent deficien ci es in the pa y111e nt of the princip al of and the interest on any outstandi ng securit i es of the -4- 1Ji s tr1ct re su\t in y fro111 the failure to deposit sufficient fun cl; to pay said principal and interest as the same accrue, all calc ulated on the assumption that the bonds will a ft er the date of co mputa t ion cease to be outstanding by reason, but only by reason, of the payment of the pr incipal thereof at mat urit y , (13 ) "District" 111eans the metropolitan sewaye disposal district des- ign ated as t he "Metropolitan Denver Sewage Disposal District No, l ," a public body po lit ic and corporate and a go vernme ntal s ubdivision of the State, also constituting a quasi -municipal district and a political subdi- vision of th e Stat e, est ablished as an instrumentality exercising pub lic and es sent i al yo vern111ental and proprietary functions to provide for the publ ic hea lth, ~afety , and general welfare , form ed unde r and governed by the provisions of the Act, and situated in the Counties of Ada ms, Arapa- hoe, Jefferson and t ',e City and County of De nv er, and State of Colorado, wit h all the powe r', privileges , immunities, rights, liabilities, disabil- itie s, and du tie s provided by t he Ac t ; an d the te r~ means any munic ip al corporat i on succeed i n<J to the rights of the Di s t ri c t. (14) "Distri ct Officer " mean s any one of t he Chairman , Chairman Pro Tern , Sec r eta ry, or Treasure r of t he Ooard and of the Dis trict, (15) "E xte nd" or "Ex t ension" 111e ans the installation of an y new inter -· ceptor or other sewer main, whi ch installation extends the System to a Mu ni c i nal i t y whi ch he,·ea fter is served by the llistrict , (16) "Facility" means any of the works or other properties, or any in ter est therein , apper taining to the "System," as herein defined, or to a "S ewer Sys tem," as here in defined, (17) "Fe deral Government " means the United States of /oJnerica or any agency, i nstrumenta 1 i ty, or corporation thereof. (18) "Fi scal Year" ,~eans the twelve (1 2 ) months commencing on the first day of January of any year and ending on the 1 ast day of December of the same year, (19) "General Fund" means t he "Metropolitan De nver Sewage Disp osal, District No. 1, Colo r ado, General Fund," created in Section 501 of the 5-1-02 Bond Resol ution, ad opted by the Board, (20) 11 Gros s income 1 11 11 g ross revenues ,11 11 income,11 or 11 revenues 11 from the System means all income and revenue, derived by the District from the operation of the Sewage Disposal System, or any part thereof, whethE•r re- sulting from Improvements, Extens i ons, AltHations, enlargements, repairs, or betterments thereto, or otherwise, and includes al 1 revenues received I by the District or by any municipal corporation succeeding to the rights of the Dis t r ic t from the System and from the sale and use of sewer service and sewerage facilities, or any combination the reof, (21) "Hereby," "herein," "hereinafter," "hereinbefore," "he re of," "he reto," "hereunder," and any si111ilar term, refer to this Agreement and not solely to the particular po rtion thereof in which such word is used; "heretofore" means before the stated date of this Agreeme nt; and "he re- after " means after the stated date of this Agreement, -5- {a) "l111p rove" or "l111pro ve111ent " 111ea ns the Extensi un, Al teration, bet- terment, reco nstruction, replace111ent, repai r , or other im prov e111e nt (or any combi na tio n thereof) of fac ilitie s, other propert y, any proj ect , or an inte r est th erein, as aut horized by t he Act, (23) "Income" means "gro ss incom e ," as here in defined . { 24) "Ind epe nd ent Accountant " means any certified pub I ic acc ounta nt or an y fir111 of sucl1 ce rtified public account ants, duly li ce ns ed to pra c- tice and practicing as such under the laws of the State , appointed and paid by the District : (a ) Who is , in fact , independ ent and not under t he dominat ion of the Distri ct , {bl lino does not hav e any substantial i nterest, direct or indi - rec t , wi t h t he Dist r i ct, and (c) who is not con nected with the District as an offi cer or e111ployee of the Distric t but wh o 111ay be regularly ret ain ed t o make annual or simil ar audit s of the books or th e reco rds of the Distri c t. {25) "Interceptor " means any one of the intercepting sewers and t he outfall sew e rs be i ng necessa ry or proper to inte r cep t an d to transpurt the outfalls from the Sewe r Sy st ems of the Spe ci al Con nector. (26) "Munic i pal Of ficer" mea ns an y one al' the fo llowing: Mayor, City Man ager, if any, Ci ty Clerk, City Treasure!, Cha irm an, and any man ager of a Sp ec ial Co nnector Sewer System, (27) "Mun icipal it y" means any city , city ancl county, incorporated town , san i tation distr i ct, water and sanitation district, or any other politica l subdivision or publ i c en t ity heretofore or hereafter c re at ed unae r the laws of t he State of Co lorad o (other than a ir etropolitan sewa ge disposa l district), having specific boundaries within" ich it is author- ized or empow ered to provide sewer service for the area within its bound ~- r ies which at the time of entering into of th is Agree ment are a co mp one nt part of th e Dist r ict and ent i tled to re prese nta tion on the Ooard. (28) "Net i ncome " or "ne t rev enue s " means the rev enues afte r deduct- ing Operation and Maintenance Expen ses . (29) "Oper ation and Main te nance Expenses," or an y phrase of sim ilar import, means al l reasonable and necessary current expen ses of the Dis- trict, paio or ar.r.rued, of oper atin g, mai ntaining , and repa i ring the Sewage Disp osal System; and the term may include at the Dis tr i ct's option {ex cept as l i mited by law), wi thout limiti ng the gene ra l ity o f the fore - going, eng i nee ring , auditing , legal , and other overh ead expenses of the District directly related to t he administ r ation , operation , and mainte n- ance o f the System, in suran ce and s urety bond µrc111iu111s, the rea sonable charges of any pay ing agent or ot her depository ban k appertainin g to the System , vr bonds, other securit ies or other ob ligat ions of tl1e Distri ct, payments to pension , r eti remen t, health , and hospit al i zation funds , any taxe s, assessments, or other ch ar ges whi ch ma y be lawfully impos ed on tne Di st rict or its inc ome or ope,:ations of facilit ies under it s co ntr'OI , -6- ordinary and current ren t a ls of equip111ent or other prope rty, refunds of any revenues lawfully due to others , incll.jing but not limited to refun ds to Municipal i ties or Spec i al Connectors, expenses in connection with the issuance of bon ds or ot her obl igation; evidenc ing any loan to th e Dis- trict, the expe nses and compensation of any truste e or other fiduciary, contractual services, professional services required by this Agreeme nt , or otherwise , sala r ies , labor, and t he cost of ,naterials and supplies used for current operation, and all other admini st rative , gen er al, and comner -I cial expenses , but excleding any allowance for depreciation or any re- serves for capital re placements , excluding any reserves for ope ration , maintenar.ce , or repair of the System , excludin g any allowance for the redemption of any note , bond, or other obligation evidencing a l oan, or the paymen t of any interest thereon, excluding liabili ties incur re d by the Distric t as the res ult of its negligence in the operation of the System or other grou1d of le ga l liability not based on contract , and excluaing the costs of Impr ovements, Extensions, or Alterations . (30) "P erson" me ans not only a natu ral pe rson, corpo ration, or other l eg al ent i ty , hut also two or more natura l pers ons, corpora t ions , or other legal ent iti es acting joint l y as a fi rm, pa rtnersh ip , unincorporated asso - ciation, j oint adventurers , or otner1<ise . (31) "Projec t" me ans the constructi on , ins tal lation, and other Acqui- sition of the Sewa ge Disposal S:;stern for the Di strict, inc lud in g, withou t: limiting th e gene rality of the f oregoing, a sewage t r eatn:ent pl ant, sewage treatment works , int ercepting sewers , outfal l sewers , fo r ce ma ins, water lin es, pump ing pl ants or stations, and appurtena nces us eful or convenient for the inte rce ption , transportation, treatment, purif i ca tion, or disposal of sewage and in dustrial wastes, and all nec essary lands, inte r est in Janos, easemen ts, and wate r rights , and any other Cost of the Project, as au thorized by the Act and by th e Oond Question; and t he Project ma y be re - ferre d to as suc h , or as "constructi ng , ins t alli ng, and oth erwise acq uir- ing t he System ," or words of similar import . (32) "Project Enginee r " me ans any registe r ed or licen s ed profes s ional engin eer, or firm of su ch engineers, or an ass ociation thereof , having a wide and favo rable repute f or skil l and experience i n the f ield of design- ing, pr epa r ing pla ns and specifications for, and supervising c onstruction of sanitary sewer systems and fac ili t ies, entitled to pract i ce and prac - ticing as s uch unde r the laws of t he St ate, selected , reta ined , and co m- pensated by th e Di str i ct, but not in ' the regular employ or co ntrol of th e Dist rict, exce pt that with respect to co nstruction on t he Sy s t em for which t he co ns truc tion drawings and speci fic at ions have been prepared by Dis- trict employees wor king on forc e acco un t or otherwise under the su per - visi on of the District's Engineer , t his term may incude the District's Engineer, including wi tho ut lim itat ion any successor of the pre sent as so- cia tion of firms now constituting the Pr oject Engin ee r. Any Pr oject Engi - neer may al so be Consulting En gi neer . (3 3) "R ate Sched ule " means the schedule of the ,n et ho ds for the deter - mi nat i on of Serv ice Cha rges and of the rates fo r their alloca tion, (34) "Re dem pti on Pr ice," when used with r espect to a bond , means the principal a111ou nt of su ch bon d plus an y applicable premiu111 paya ble upGn the redemp tion the r eof prior to its s t ated maturity date in the manner contem- pla ted in accord anc e with its terms , -7- I (35) 11 Hevenue" m~.:ins 11 9ross in comc ,0 as herein defrncd . (36) "Reve nue Fund" means the "Metropo l itan Denver Sewage Disposal Distrtct No. I , Colorado , System Gross Reve nue Fund ," created i n Sect.ion 501 of the 9-1-77 Bond Res o lution, adopt ed by the Boar d , (37) "Secretary" means the Roard and the Oistri ct , membe r of the Ooa r d and ma the Tr eas urer , the person chosen by the Board as Secretary of wh ich person may be (but is no t nec essar ily ) a (but is not necessarily) the same person as (38) "Secretary of State" me ans the secretary of state of the 5tate of Co lorado. (3 9) "Service Cha rge s" means rents, r ates, fees, tolls, and other cha r ges for di r ect or indirect co nnection with or the use of services of the Sewa ge Dispos al System , includin g, wi thout limiting the <'o nera l ity oi th e fore goi ng , mini mum cha r ges and charges fo r· the availability of serv - ice , which Se rvice Charges the District is or may be authuri,ed to iix, chdl'ge , an d co llect f r o111 any Municipa l ity or person independent of th is or any other cont ract , pursuant to subsection (11r ) of Section 32 -•1-510 and to Section 32-4-52 2 of the Ac t, (40) "Service Contract" means tha t co ntr act betw een the Di str i ct and ce rta in mun ic ipalities dated the fi rst day of January, 1964, bu t actually exec ut ed on the 30th day of March, 196 4 denominated as the "Se wage Treat- me nt and Di sposa l Agr eeme nt " as it has been from time to time amended . (41) "Sewage" me ans liquid wa stes , solid wast es , night so il , indu s - trial was te s, any ot he r su bst ance , whethe r it be liquid , s olid , i n sus pen- s ion , or in solu tion, in a Sew er System or i n the Sewage Disposal Sys te111 , or in both such systems, (42) "Sew age Dispos al Sys tem" or "System" mea ns the sanitary se wer and ot her sanitation facil iti es to be construc ted , i ns t alled , and ot her - wise acqui red by the Distri ct, ini tially as the Pr oj ect , and as therea fter mod ified, (43) "Sew er System" :n eans a system pro vid ed by a Municip al ity ur a Spec i a l Connector to provide sewe r service to its in hab i ta nts by the col - lection of se wage ar ising within its cor porate limits and t o the extent determi ned by its go verning bo dy with out its co r po r ate limits and by treat ing and by dispos ing of such sewage to the exten t of the adequacy of existing fac il iti es of the Municipality or Sp ec i al Connecto r, as deter- mined and ap pro ve d by t he regulatory agen cy of the St ate ha ving jur is - diction, (44 ) "Spe cial Connector " mea ns an y city, inco rporated town , sa nita - tion distr i ct, water and sanitation district , spe cial dist r ict , or il ny other political su bdivision or pub l ic en tity heretof ore or here after created und e r the law s of the State of Color ad o, includ ing a metropolita n sew age dispos al dist r ict , hav in g spec ifi c boundaries within whi ch it is au tho rized or empowere d t o provide sewer se r vice for the are a withi n its boundaries, ,1hich i s no t a membe r of the District. Speci al Conne ctors shall not be entitled to r epresent ation on the Bo ard of Di recto rs, -8- (~5) 'Sta t e" rnea ns the Sta t e of Co lo ra do. (46) "S ystem " means "S ewa ge Di s posa l System." (47) "Taxe s " mea ns gen r r al (ad val or emi ta xe s as au th orized t o be levied aga inst a ll ta xable pr ope rty in the Dis t rict by the Act. (48) "T r eas ur er " me an s the pers on cho se n by the Bo a rd as Tre a surer of the Board anc t he Di stri ct, wh i ch per son may be (but is not neces s ar ily) a membe r of the Roa rd and may be (bu t is not neces sa r ily ) the sa me per s on as the Se creta ry . B. Co ns truc t io n. Thi s Agr ee men t , except where t he conte xt by clear i mplic at i on here in othe rw i se r equ i r ed , shal l be cons t r ued as f ol - lows: (I ) De fini t io ns in c lude bot '1 s i ng ul a r and plur al. (n Pr onuuns inc lu de bot h sin gula r and plural and cove r a l I genders . (3) Ar tic le s , s ect i ons, s uJsect ions , pa r ag r aphs, and subp ar a- gr aphs ment ion ed by nu •11 ber , l 0 t::er or ot her•si,e , co rres pond t o th e r esp ecti ve artic l es , se ctions , ~absections, pa rag ra ph s, and su bpa r a- gr ap hs o f th i s Agr~emenI so r. 11lc red or ot he rwi se so de s ig nate d , Secti on 103. Suc cessors. Whenever he rein the Dis t r i ct or any Splcial Con nector is na:11ed or is re fe r red t o, such pro vi s i on sha ll be de eme d to i ncl ud e t he suc ces s ors of t he Di s t rict or the Speci al Conn ect or , r espec t ile ly , whet he r so expr essed or not. Al l of t he co venants , st i pula- ti ons , ob l iga tions , an d agr eemen t s by or on behalf o f and other provi s ions f or t he bene f i t of th e Di str ict or any Spe cia l Connecto r con•a i ned her ein shal l bi nd a nd sha ll inu r e t o t he be nef i t o f any ot f ice r, boa r .,, d is t r i ct , co nvn iss ion , auth ority, agent or in st r ument ality t o who m or t o which th ere shal l be transfe rred by or in ac co rda nce wi th la w any r i ght, po wer , or duty of t he District or the Spec ia l Co nnecto r , r es pecti ve ly , or of i t s s uccessor , t he pos sess i on of wh i ch is ne ce s s ary or app r op r i ate i n order to com ply wi th any suc h cov enants , st ip ulat i ons , oblig ations , ag r eem en ts , or oth er pr ovi s ion s he reof. Sect i on 104. Parties Interested Herein. Nothi ng he r ein expre s- sed or im pli ed i s int end ed or shall be constru ed t o con fer upo n or to give t o any perso n or cor pora t i on, ot her t han the Di stri ct Assoc ia t e and Con- necting Munic i pa l it ies as defin ed in t he Se r vi ce Contract and t he Specia l Conne ctor , any t r us t ee for, an d an y ho l de r of any not e , bond s, or ot her sec ur i tie s of th e Di st r i ct, an d the co upons t her eunt o appertaining, if any, any ,·ig ht , re med y, or cla im unde r or by r easo n he reo f or any co ve- nant, condi t io n, or stipu l at i on her eof. All the covena nts , stipul ations , pr om i se s, and agr eement s he r ein cont ai ned by an d on beh alf of t he Dis tr i ct sh al l be fo r t he sol e and exclusi ve ben e fi t of th e Di str i ct, the aforesa id Mu ni ci pal i t ie s, th e Spec i a l Co nnector, an y suc h t rus te e , and any ho l der of any suc h not e bonds, othe r se cu r ities , and th e coup on s t here un to apper - ta i ni ng , if any . -9- ARTICL[ I I OPERATION OF THE SYSTEM Se ction 201 . Acquisition r od Purpo se. The llistr·ict wil l oper - ate , main tain , and enlarge the System so as to receive , to treat , and to dispose of sewage , wh ic h may the r eafter be deliver ed into the System by any Special Connecto r In accordance ,ilth thi s Ayre e111 ent. Section 202 . Extensions and Alterations. Th e District 111ay at any ti111e. enlarge or modify t he Syste,n or renew or replace any pa rt thereof and may con struct or othe rwis e Acquire any Extens ion (•r Alteration , as may be feasible and then be pe rmitted by law. Section 203. Pe r forming D•Jties . The Di strict will falth f ul°ly ana punc tually pe r for111 all dut ie s with respe cl to the S;'St em requ ired by the Cons titution and law s of the St ate dnd lh~ resolutions of the :lis - trlct , including but not ll 111lted tc the making and collecting of reas on- able and sufficient rate s and cha rg es for services rendered or furnish ed by the Syste111 , and the proper segr~uat io n of the revenues of the System an a their appl ication to t ne re s pective fu nds provided from ti me t o tim e t herefor . Similarly the Special Conne ct or wil I so perform all dut ·ies with respect to its Sewe r System re qu ired by tt,e Const it ut ion and la1,s of th e St ate, by ordina nces or res oluti on of the Sp ec ial Con ne ctor, and by reso lu tions of the Di strict, as per1111tt ed by la1,, Including but no t limited to the pro mp t payme nt of Annual Charge s . Sect i on 204. Operati on ano Maintenance of System. The Distric t s ha ll at all t im es opera te the Sy st em prop erly an d in a sound and economi - ca l ma nn er and shal l maintain , preserve , Jnd keep t he sam e prope r ly or cause th e same to be so maint ain ed, pre ser ved, and kept , ,i i th t he ap purte - nances and ev ery pa r t and par cel in go od repair, order, and condition, and shal 1 irorn tim e to ti me make or cau se to be ma de al 1 necessary an d proper r epa irs, r eplacements , and renewals so th at .i t .ill times the oper.ition of t he Syst e111 may be pro pe rly and advantayeously conduc ted . Section 205. Rules , Regu l ations, and Other De t ails. The Dis - tri ct shall eH abli sh and enfo rce reasonable rules and re gulation s gove r n- ing t he oper ation, use and se r vices of t he System . All com pen sat ion , sa l aries, fees, and wages paid by it in connection with th e ma in tena nce, repair, and ope ration of the System shall be re as onable and comp arab le to payments by othe r corporat ion s, Municipalities , or public bo die s for simi - lar se r vices . The Di str ict sha ll observe and pe r form all of the terms and conditions contained i n t he Act an d shall compl y wi th all valid acts , ru les, r egula tions, orders, und di r ec t ions of .iny leg i slati ve , exe cutive, admini strative , or judi ci al bod y appl 1c.ible to the System or to the Dls - t r i ct. Section 206. ~aym ent of Lawful Governmental Ch ary cs . The Ois - t ,ict shall pa:• all municipal or gove rn mental cllar yes , if any, law fully lev ied or ass, ;ed upo n or 1n. re spe ct of t he System or upon any part -10 - t her eof or 11pon a,,y re verue there f r om, when th e same sha l l become c,u e , and shall duly :-bserv e and comp ly 1<i t h all vali d requirement s of any munic ipa l o r go ve rn ment al ~uth ori t y relative t o any par t of the Sys t em and sh al l not cr ea t e or suf >'er to be created any 11 en or cha rge upon t he Sys tem or any part th e re of or upon the r evenues the r efrom, except t he µl edg e anC: 1 ien crea t en. by any re sol uti on fo r the pay me nt of the pri ncipa l and r edemp ti on pr ice of and the ln t e,est on the bon ds and ot her se curiti es of t he Dis - trict. The Dist r ic t shall pay or shal l cause to be d isc ha r ged or wi ll make ad equ ate pr ovi s i on t o satisfy an d to dis cha,·g e , with i n si xt y (6 0 ) day s aft er th e same s hal l becom e paya bl e , al l l awf ul clai ms and demands for l abor , mate ria l s , SL1ppl ies , or oth er object which if unpai d mi gh t by l aw become a 1 ien upon the Systeu> or any pa rt t herof or the reve,,ue s t he r e fr om ; pr o.i de d , h011 ev e r , th at noth i ng in th is Sect i on 20 6 cont a ined sha ll require the ~ist r ict to p,y or t o ca use to be disc harged or to mak e pro vision for a11y suc h li en or cha r ge so l ong as t he val idity th ereo f shal l be co ntested in good f aith an d by appr opria t e leg al pr oceed i ngs . Se ct '.on 207 . Insurance and Recon structi o11. The Di st r ict sha l l a~ a l l tim es e.,a i nt a in with re sponsible i nsur e r s al 1 such i ns ura •·ce re ason - 1,bly requ i r ed and ob t a in able wi t hi n li mit s and at costs deemed re aso nable t,y th e Dist ri ct as is custo111u il y mai nt ai ned wit h ,·espe.ct t o sew er ag e sy s- t ems o f like cha r acter aga inst l oss o f or damage to t he System, ag ainst l oss o f reve nu ei , and agai nst public and othe r l i a bili t y t o t he ex te nt at least reaso na bl y necessa ry to pr ot ect t he i nt er ests of t he Dis t ri ct anil th e Specia l Connec tor and al so all such in sur anc e as i s re qu i re d to indem- nify an d t o s ave ha rml es s t he Spec i a l Connec t or· aga i nst al l l ia bi l ities , J ud gment s , costs , dama ge s, exp ense s, and attorn eys' fees fo r l oss , da mage , or i nJ ur y to person or property result i ng f r om t he op er at i on or a fail ur e of .pe r at i on o f the System caused by t he ne gl i genc e or wi llful act of the Dis t r i ct. Ois tr i ct Off i ce rs, empl oyees , or any ot her age nts. An y lia bi l - ity i nc c r·re d by t he Oi st ric t as a re sult of the ope"a t io n o f it s Syst e,11 sha l l be i ts s ole li ability, and any liabil i t y incu r red by the Spec i al Co nnector as a re s ult of the ope r at i on of it s Sew er Sy stem sha ll be its so l e liab ili ty, s ubjec t to an y agr ee ment t o the contr ary no w exis ti ng or here after made , If any use f ul pa r t of th e Sys t em sha ll be damage d or des t ro yed, t he Di st r ict s hal l as e,,i editi ously as may be poss i ble commenc e an d di ligent l y pr ose cute t he re pa i r or re pla cement of the damaged prope r t y so as t o restor e t he s ame t o use . The pr-oceeds of any in s ura nce a pper·- ta in i ng th e r eto sh a l l be payab le to th e Di s t r ict and (exce pt fo r proceeds of us e and oc cup ancy insu r anc e) shal 1 be a pp l ied to t he necess ary cos t s i nvol ved in su ch re pa i r and rep l ace ment and , to t he ex tent not so appl ied, shall (t oge th er with pr oce ed s of any su e~ use and occupa ncy i ns urance ) be de posited by th e Oi str i ct as reve nues of the System. In t he eve nt th at th e co sts of such repa i r an d r epl acemeht of the da mu ged pr operty exce ed the pro cee ds of such i ns ur ance avai l abl e for pa yment of t he same , mo neys in t he Gen e r a l Fund or t he Op er ation and Main t ena nce Rese r ve Fund , or both such accou nts , as the Di st r ict may de t e rmi ne , shal 1 be used t o the exte nt neces s ary f or such pur poses. Se cti on 208. Alien at ing Syst c,n. Th e Di sLrict 111a y se ll, ex- cha nge, or leas e at any ti me an d f ro m t i me t o t im e any pr operty or f ac i l i - ti es constituti ng pa r t of t he Syst em and not usefu l in t he cons tru c t i on , r eco nstruction, or opera ti on t here of . -11 - I SP ction 20Y. ll ecord ~. Accoun ts a!l d Audit s . The District shal I keep prope r )Ooks of r ecord and accc•Jnt,, (s eparate fr om al I oth er record; and acco un ts), in whi ch compl ete and c~rrect en t ries sha l I be ma de of i 'cS trans act i ons relating to the System or any part thereof and whic h, to- gethe r with all ot her books and paper s of the District , shal l a\ all reasonabl e t 'me5 be s ubject to the inspectio n of at le a·;t any n1~mber of the Boar d an J any Munic ip a 1 Officer , The Distri ct shall r.use i ts books an d ac counts to be audited annual ly by an lndei·,ndent Accountant sel ected by the Dis t · ct. AHTICL E 111 GE llERAL PROVIS IONS CONCERN I NG SEW AGE DI SPnS AL S VS TEM Secti on 301. Tributary Sewer Systems . In gen eral, connection t o t he Sy stem of t he Di st rict shall be ma de only at the con necti on poi nts pr ovid ed here in , or as approved by th e Distri ct ; sh all be l i mited to t he Sewer Syst em s own ed, op e rated, or c ontr ol l ed by the Speci a l Connector; and shall be mete red or othe r wis e measured at the discreti on of the Distr ic t. Ttie Di stri ct may ma ke prov i sion at each point of conn ec tion listed i n Ex- hib i t A he r e of for mea surement of quant1ty and f or sampling. Connecti ons including facili t ies for measurement of quanti ty and f or sampli ng , wt1e r1 - ever requi r ed by the Distr ict , shall be made at the e xpe nse of the Spec ia l Co nne cto r , The Specia l Connect or sh a ll r equire and enforce conformity to these regulatio ns with res pe ct to the tr ibutary system and i ts parts and , whe re applicable , with r es pe ct to ind ivi dual contribut ors or grou ps of con t ri buto r s t hef'et o . On ly se wa ge f rom se parate sa nit1.1ry syst ems shi.1 11 be discharged into the Sy stem, subjec t to the pro vis ions of Sect ion 406 thereo f . Local sun it ary s yst ems sh ull rec ei ve no s turmwJtl!r direc tly ur i nd irectly f ro rrr s ur face drains , ditches or streams, storm or co mbined sewers , ro of , areaway 1 or f ou ndation dra1ns 1 or from any othe r means , exce pt t hat the mini mum pract i cab I e in filtration of gro undwa ter ( in any ca se not to exceed 20 0 gallons pe r i nch di am eter per mil e per twenty-fo ur (24) !lo urs with a maximum of 8 ,400 gal Ion s per twenty-fo ur (24 ) hou r s per mi le of se,ier ) will be perm itted, All tru nk , su b-trunk , or lateral sewer s an d a ppurtena nt stru ctu res comprising local tr ibutary systerns constr ucted a ft er the da te of this Ag r ee men t s ha l l be of ade quate stre ngth to res ist breakage and shall be subs tant ially watertight . Pi pelines, i ncl uding with out li mi tation house and building connection s , shall be of such mat e r - ia l as to mi ni mize initial and f uture i nfi ltration, and al l su ch pipe shall be pro pP.rl y bedded or cradled and constructed us i ng tight joints of type, mat eria ls , and wo r kmans hip wh i ch will minimize infilt r ation , Section 302, Connections to Sys tern , Upon wr itt e n app ro val of th e Distr i c t, the Special Co nnec to r will permit i ts Se1<er Systerns or tile outfalls therefrom to be con nect ed with the Distr i c t's Se wag e Di s pos al Sys tem ut t he poi nt or points desi gnated in "Exhibit A" att ach ed hereto and by this r efe r ence made a part hereof , or ut such oth e r µoin t ur point s upor. which the Spec ia l Conn ector an a th e Dist ric t may mu tual l y agree , Every connection list ed in Ex hibit A shul I be made by the Specia l Connec - to r ut it s own expense and cos t , a nd al l other a pproved connections shall be mad e at the expense of the Spe cial Connector. Every such connec t io n -12 - sha 11 co nstitute and sha 11 be operated by the District as part a f i ts Se1·1- ag e Disposal System and shall include such faci11tiP:; ~s ma y be necessary to cause all sew.~e delivered at said point or points o f connection to be discharged into the System and be so· made and be so co11st1·,,cted as to dis- charge i II to the System a 11 sewage co 11 cc t ctl in i t s Se1,•er Sys te11 1 and de 1 iv- ered at said point or points of connection. The Special Connector at its own expense and cos1. wil 1 construct, install , and operate an y a nd all ex- tensions of its Se wer Sy~tem or the ou tfalls therefrom necessary to cause the s~me to reac h to and t~ deliver sewage at sairl point or points of con- ne ction and after the making of such co nne ction 0 1 co 1111c c tions, ivil l kee p its Sewer System connected with the System ancl ,vil l de l iver ,in d d ischarge Into th e System a ll sewage origin.1tin9 in anti collected by t he Special Co nnector except as herein othenv i se pro vided exp r essly or by neces sary im pl ir.ation. Section 303. Service Rendered uy the Ui strict a nd uy the S11 ec ial Connector. The Di s trict's Se1<,1ge Disposal Sy stem sh,1 11 in tercept, recei ve, transport, treat, and dispo se of the scwdue f ,~0111 the se ~'le1· System a f the Spec i a 1 Connector. The Spec i a 1 Con nector sha 11 retain fu 11 po1<e r and cluthority to provi de se wer se ,-vll:e to t he i11h.ib 1t.111L s of tluJ Spc i:i.11 Conn ector inc 1 udi ng the Acqui s i tion, lmprove111e11 t, op e r a ti on, a nd mai nte- nance of facilities for the collection of sewage a rising ,vithin the cor- porate 1 i mi ts or boundaries a f the Spec i a 1 Con nector . The Spec i a 1 Connec- t or may only provide sewer service outside its corpo r ate limits or bounda- rie s to the extent it ha s the prior approval of the district. Prior to annexation or enlarging o f its boundaries by the Sp ecial Con nector, the Spe ci a l Co nnector shall obtain th e approval of the Di strict for such an- nexation or en 1 argement . The District, t hrough its Board, may disapprove such ann exati on or enlargement if it de termines that the Special Connecto r cannot feasibl y be served through the Dist rict 's facilities . Section 304. Competing System. So long as any bonds o r other securit1es of the Distr1ct are outst4nding, the District shall not grant any franch1se or 1 icense to a competing system, nor shall 1t permit dur in g said period (except as it may legally be required so to do) the Acquisi- tion or Impr ovement by the Special Co nne c tor of sewage treatment or dis- posal facilities whi c h shall increase t he c,1 pacity thereof; provide<1, how- ever, that the District may consent to such Acquisit i on or Improvement and may approve the plans and specifications therefor if the Board determines each of the foll01,ing: A. Not Economically Feasible. It is not economically feasible for the Di stric t to furnish the desired t reatment or di sposaT. o. Sec urity Not Substantially Impaired. The Acquisition or Improvement of such facilit ie s or sys tem by the Special Connector or by any other Person within its bou nda rie s shall not substanitall .Y impair the security for the payme nt of the obligations of the District. C. Approval Granted by Act. It is not 1nequitable or unreaso n- able for the District to grant such co nse nt Jnd approval, pursuant to Sec - tio ns 32-~-"0G, 32-4-513, 32-•1-514, 32 -4-51 6, and 32 -4-530 of the Act. Any such cons ent however, is subject to the provisions of Section 305 a nd Sr.ct ion 307 ilcreof . -13- Sect ton jCS. Cor,struct ion of Other Sewage Di sposa 1 Systems Prohibited. The Distri ct shall shall be the exlus1 ve agency for the ,\c- quis ition and operation of a sewage disposa l system for the area served by the District, except as otherwise p·ovided or authorized in this Ag reement and in the Act; and no sewage disposal system or other facilities for the collection, treatment or disposa l of sewag e arising within the ar ea se rved by the Distr·ict (including any se wage treatment or disposal facili- ties of a Sp ec ial Connec to r) sha ll be Acqu ired or Improved hereafter wh ich shall increase the capac i t y thereof unless th e District shall give its consent thereto and shall approve the plans and specifications there for , exc ep t for any Acquisition or Improvement of any sewer collection facili- ti es or Sewer System (b ut no t ~ewage tre atment or di sposal faci\ities or sewage di sposa 1 system). or an.1 pa r t t hereof, owned by the Spec i a 1 Con nec - tor at any point abov e t he t<•nne ction of such col l ecti on facilities or Sew er Sy stem with the Sewage Di spos al System, or any part thereof, of the District, except as herein utnerwise provioed, including without limita- tion the provisions of Sec t ion 406 hereof. The Dist r ict i s empowere d by the Act to give suc h consent and approval, sub j ect, how ever, to the terms and provisions of any agreement with any holder of securities , includ iny but not 1 imited to t he provisions in Sectio n 304 he reo f. Section 306 . Li mi tations Upon Consent. Whenev er under the t er111s of this Agreement the District is authorized to give i ts writte n consent, the Di str ic t in its discretion may giv e or ma y r ef use such writ- ten consent and if given, may restrict, limit, or co nd ition such consent in such ma nner dS it shall dee m aavisable. Acceptance by the Di strict into the Se wage Di s posal System from the Specia l Connector of sewage i n a vol1111e or with characteristics exc,ied i ng or violating any 1 imit or re - striction provided for by or purs uan t: t" th i s Ag r eeme nt in one or more i n- stanc es or under one or more circumstar,ces shall not constitut e a waiver of su ch 1 imit or restriction or of any of the provisions of this Agre~ment and shal 1 not i n any way obi i gate the Oiltrict thereafter to accept or to mak e prov isi on fo r sewaye deli ver ed and discharged into the Syst~111 in a vnl J111 e or with character i st ics ex ceed ing or viol ating any such limit or rest rict ion in any other instMce or under any other circumstances. Section 307. Fann of Consent. Whenever under t he t e r ms of thi s Agreement a Special Connecto r is Juthorized to give its written consent, such consent may be given an d shall be conclusively evidenced by a copy, certified by its Clerk and unde r i t s seal, of ·a resolution purporting to have been aaopted by its gov ern i ng oady and purporting ta give such con- sent, Whenever under the terms of thi s Agree ment the District i s author- ized to give i ts written consent, such co nsent ma t •~ given and shall be conclusively evidenced by d copy, ce rtified by its Secretary' and under its seal , o f a reso l ution purportin g to have been adop t ed by the Board and pu rportin g ta give suc h consent . -l 4- ARTICL E IV DELETERIO US WASTES Section 401, Additional Definitions. As used in this Agree- ment, the fol lo11ing terms shall mean: A, "B iochemical Oxygen Demand ('BOD')" mea ns the l aboratory determination of the quantity of oxygen utilized in the biochemi cal oxidation of or gJric matte.r in a given time and at a specified tem- p1,rature, being expressed in pa rts per mi 11 ion (ppm) or (mg/1 iter) of oxygen used in a period of five (5) days at 20°C . B. "Categorical Standards " mea ns Standards as set forth and defined in 40 CFR 403,6. C. "E xtra -Jurisdict i onal Industrial Use r " means any Indu strial user connected to the sys t em of con ne ctors of Municipalities as autho riz ed in Section 303 of the Service Co ntract. O. "F ede ral Pretreatment Reg ula t ions," All references in this Article to 40 CFR §403 refer to that se ction included in Title 4·0 Code of Federal Regu1ations Part 403, Environmental Protection Agency General Pretreatment Regul at i ans as authorized by th e Feo J ra I Wate r Pol lution Control Act Amendments of 1972 as amended by the Clean Wat er Act of 1977 (33 U.S.C. 1251 !!_ ~), or said regulations and statutes as m'.y from time to time be amended . E. "ln~ustr i al user " means any non-domestic source discharg ing pollutants into a publicly owned treatment works, F. "Industrial Waste Control" maans the regulation by the Dis - trict of n~n -dome s t ic wastewater disc harges by Industrial Users and Mu ni cipal ities. G. "Interference " me ans the inhibition or disrup t i on of the District's System, its treatment process es or operations or its sludge pro ce sses, use or dis posa l, in cluding those inhibitions or disruptions whi ch cause or contrib ute to either a violation of any requirements of the District's NPOES Permit, or to the pr evention of sewage slud ge use or d i sposa l by the District in accordance with any applicable statuto ry provisions, regulations, guidelines, or permits . H. "pH " means the logarithm of the reciprocal of the hydrogen ion concentration, indica t ing the intensity scale of acidity and alkalinit y expressed in terms of a pH scale running fro m 0 .0 t o 14,0 with a ,H value of 7.0, the midpo i nt of the scal e , representing exact neutrality and wit h values above 7,0 indicating alkalinity and those below 7.0, acidity. I. "Pretreatmen t " me ans the reduction of the amo unt of pollu- tants, the elimination of po l lutants, or the alt e r a tion of the nature -15- or pulluLJnl p,·o pert1~s in wastewdter prior to or in l ie u of di s - charging or oth erwi se in tr od ucing such pollutan ts into a publ ic ly own ed t reatment wo r ks, as control le d by Fed eral Pr e treatment Regula- ti ans . J . "Pro gra m" medns a program for the contr ol of wastewater dis - cha rges f ro m Industr i al Users th at meets the c riteria establis hed under the Fe deral Pretreatmen t llegulations and Articl e IV of t he Serv ice ContrJct. K. "Pol l uta nt " means any dredged spoil , so l id waste, in c in era- tor re sidue , sewage , garbage , sewa ge sludge, munit i ons, che mi r:~ was te s 1 llloloyica l mat er i a ls, ra(l1oactive ma t erials , heat, wrec ket. or disch arg ed equipment, r ock, sand, cella r di rt and industri al , munic i- pal , and ag r icu lt ural waste di scharg ed into wate r. L. "R equir em ent " means an y substantive or procedural requ·r a .. ment imposed on a Municip ality , Specia l Con ne ctor, or lnclu str-1"1 User . M. "Standa rd " means any pol lutant di sch arge li mitation or pro - hib ition , or any regu lat ion co nt aining such limitati ons or pro hib i - t io ns . N. "Suspended Solids ('SS')" means th e labora to ry det ermindt i on o f dry weight exp ressed in part s per million (p pm) or (mg/liter) of sol i ds that either float on th e surface or are in suspens i on in sewage an d can be r emoved from sewage by filt rat i on, D. "Tests fo r Qua I ity" mean s t he me asurements, ~e st s, an ci analyses of the cha racter is ti c s o f water s and wastes in accor~ance wi th the method s contained i n the lat est edit i on (at th e ti me of any such mea s urement, test, or an alys i s) of "Stan dard Me thods for t he Examination of Wat er ~nd Wa stewater," a joint publication of t ne Am eri can Public Health Association, the Am eric an Water Works Ass ocia - tion 1.nd the Water Pollution Control Federat ion, or in accorda nce with any oth e r meth od presc ri bed by the District by ru les and regula - tio ns promul ga ted pursuant to th is a rt ic le. P. "User" means any person wh o contr ibu tes, causes , or permi ts the con tribution of wa5te wate r t o a publicly owne d tre atment wor ks. Section 402. Compliance with llequirements. Each Special Con - nector wi 11 cause al 1 sew age at any time di scharged directly or i nd irect l y into the System by i t or on its behalf to co mply with any r equirements of the District as pe rmit ted by law, In al 1 cases wh ere t he applic ati on or the enforcement of sa id requ irements and any amen dme nts ther eof involv e technical or sc ien t ific ana lyses or determina tions, th e District sha ll ha ·1e fi na l autho rity as to me t hods, sta ndards , cr iteria , si gnificanc e , evaluation, and interpretation of such ana lyses and dete rmi nat ions. Each Spe ci al Connector will permit no new connec tions and will d isc ontinue existing pub l ic connecti ons and wi ll req uire the discontinu ,rnc e nf ~x is t - i ng private con nect i ons t o its Sewer System which al low entra nc e ther ei n of such sewage as wi 11 cau se the disc harge at any t i1ne in t o th e Sys t em -16 - from such Sew~r System of sewaye tha t does not com ply with said re qu ire- ments of the District. The District may from t i me to time make a dete r- mi nation of the res pects in which sewage discharg ed into the System by any Special Connector is net in comp l i ance with said requirements and with t he amend ments thereof, if any, then in effect. A copy of said determination shall be mailed t o the Speci al Connector at it s usual place of business and for all purposes of t his Agreement shall be conclusively deemea to hav e been made in acco rdance with thi s article and to be correct at the expiration of thirty {3D) days after such mailing unless within sa i d peri od of thirty {30) days the Spec i al Connector s hall have filed wit h the Di strict an objection thereto stating that such de t ermination is incorrect and stating t he changes there in which should be made in order to correct such determin ati on. Se ction 403, Place of Compliance. Sewage dischar ged into the System by or on beha lf of a Special Connector sh ~ll at the poin t of con- nection of its Sewer System with the Sewage Di sposa I System comply with the req u i re ments her ei nabove de s i gnat ed . Section 404. Modification of Deleterious Wastes Requirements . Th e Dis t r ict ma y f ro m ti me to ti me make any ame nd me nts of said require- ments concern i ng deleterious wastes which may be reasonably nece s sary to prohibit or to regulate properly t he delivery or the discharge into the System of any sub stances which alone or in co mbination with other suti- stanc es del iv ered and disc harged into the System from the same source are or may be or may reasonably be expected to be substant i ally injurious or de l eterious t o the System or to its effic i ent operat i on . Every such amend me nt sh a ll take effect as to the Special Connector sixty (60) da ys after a cop y of such amendme nt shall have been mailed to su ch Special Conne cto r at its usua l pl ace of business ; and for all purposes of this Agr eement such .:i 111e nclm u11 t shall be conc lu siv ely dee111ed to have bee n miJ Uu 111 accordance with this article and to be authorized ful ly thereby at the expiration of said period of s i xty (fi0) days un l ess within said period of sixty i60) days the Specia l Conne ctor shall have filed with the District an object ion thereto stating that such amendment would contravene this Agreem en t in a manner prejudicial to the Sp ecial Connector and stating the mann er in which surh amend ment would so contravene this Agreement. Any controversy or cla im involvi,,g J Special Connector which s ha ll have so filed an obj ec t ion to any such amendment and arising out of or relat i ng to the making of such amendment or the breac h of any requirement prov ided by such amendment shall be referred to t he Colorado Depart ment of Health whose decision in the ma tt er shall be binding on all parties. Section 405, Determ ination of Quantity, Qual 1ty, and Character- istics of Sewage. The District may use meters for determ i ning the quanti- ty and will make tests and wi l l us e other means for determining the qual - ity and oth er characteristics of all sewage which shall be de livered and discharged into the System by a Special Connector and 1n accordance with sound engineering practice shall determi ne such quantity , quality, and any other characteristics . A copy o f ea ch such dete rmination made by t l1e District with respect to each Fisc a l Year shall be mailed to the Special Connector at its usual place of bus in ess and fo r al l purposes of th i s Agreement shall be conclusively deemed t o ha ve been made in accor dance with this section and to be correct at the ~xpiration of sixty (60) J ays -17- ufter sJc h ,,,a i I iny un le $S wit hi n said per i od of sixty (60) days the Spe- c ial Conn ector shall have fi l ed with the District an ob jection thereto stat ing that su ch de termi nation is incorrect and st ating the cha nges therei n wh ich should be made i n order to correct suc h dete rminat ion . From and after th e pla cing of the System in ope r at ion, the Oist r ict will make and wi 11 keep pe rman e nt records of the qua nti t y, qu alit y , and ot her char - acte r isti cs of sewage del ive red and discharged into the system by the Special Connec tor. For the pu rpose of dete rmining the qu antity , qu ality, and other ch ar ac teristics of any sewage whi ch shall be or may be delive re d and di sch ar ged int o th e Sys tem oy a Municipality, the District shall hav e the r ight at a ll reasonable times to ente r upon and to ins pect the Sewer Sy stem of t he Spec i al Conne cto r or any i~iustrial or conine r cia l installa- tions conn ected thereto or any other co 11 .•P r.t1 011 s which cont ri bute se wage or wastes t o the lo cal Sewer System and to ta ke no rmal samp l es under ordi- na ry operating conditions and to make test s , me asureme nts , and analyses of sewage o r ot her wastes in, entering, or to be d i scharged in to such Sewer Syst em. The Di stri ct wi 11 ma ke and wi 11 keep a recor d of tests , measure - ments , and ana l yses of such sew ag e or other waste s ente ring su ch Sei,er Sys t ems , and there shal I be forwarded to t he Spec ial t:onnec tor · tho r es ul ts of such tests, meas ur ements , an d anal ys es appertaining the re t o, Se ction 40 6 . St onn Wate r s . Sub ject to th e provisions of Se c- tio n 301 hereof, the Special Co nn ecto r shall not make or permit any con- nec ti on to or extension of its Sewe r System which is so designed as to pe rmit entrance dire ct l y or indirectly into the Se wage Disposal Sys tem of storm wat er drainage from gro und surface, roo f leaders, catc h basin s, or any other source. Section 407, Prohibited Sewage and Wastes. A. Genera l Di scharge Prohibiti ons. None o f LIie 1·ol l o,<111y ue - sc r i bed sewage, water, substances , ma t e ri a 1 s or was tes sha 11 be discharged into the Dist r ict's Sy s tem; and als o each governing bo dy of each Spe c ial Connec t or sha l l prohibit and sha ll prevent suc h discharges by any User, either di re ctly or indirectly, into it s Sewer System : I. Any liqu ids , solids or gases which by reason of their nat ure or quan t ity are , or ma y be, sufficient either al one or by interaction with other substances to cause fire or explo s ion or be injur iou s in any other way to the District's Syst em , the Se •,ier System of a Speci al Connector or any of i ts connectors, or to the operation of the is - t ri ~.t. At no time shall two suc cessive readi ngs on an ex plosion haz a rd met e r, at t he point of disch arge int o th e Di strict's System or the Sewer System of the Specia l Connector or any of its co nnectors (or at any point in t he Systems), be more than f ive percen t (S t ) nor any single reading over te n percent (10%) of t he Lower Explosi ve Lim it (LE L) of the meter . Prohibited ma ter i als inclu de , but ar, not limited to, gasoline, kerosene, naphtha, benze ne, toluene, xylene, ethers, alcohols, ke tone s , aldehydes , perox i des , ch l or a tes, pe r chlor - ate s , bromates, carbides, hydrides, and sulfides. 2. Any solid or viscous material which could cause an obst ruc - tion to flow in the sewers or in any way coul d i nterfe re wit h the tr ea t ment proc ess, including as examples of such mat erials but with- out li miting the general it;, of the foregoing, signif icant proportio ns -18- of ashes, wax, paraffin, cinders, sand, mud , straw, shavings, meta l , glass, rags, lint, feath er s, tars, plastic s , wood and sawdust, paunch manure, hair and fleshings, entrails, lime slurries , beer and distil- lery slops, grain processing wastes, grinding compounds, acetylene generation sludge, chem ical residues, acid residues, food processing bulk solids, snow, ice, and all other solid objects, material, re- fuse, and deb ris nor nor mally contained in sanitary sewage, 3, Any wastewater having a pH less than 5.0 for discharges into the Sew er System of the Special Connector or that of any of its con- nectors, or less than 6,0 or greater than 9,0 for discharges into the District's System, or wastewater having any other corrosive property capab l e of causing damage or hazard to any par t o f the District's system or the Sewage System of the Special Connector or any of its connectors, or to personnel, 4 . Any wa stewater having a temperature wh i ch will inhibit biol ogical activity at the Distri ct's treatment plant, but in no ca se waste,iater containing he at in s uch amounts that the te111perature at the introduction into the District's treatment plant exceeds 40°C ( 104 °F). 5. Any pollutants, including oxygen demanding pollutants (BOO, etc.) released at a flow rate and/or pollutant concentration which wi 11 cause interference with the operations or processes of the District. In no case shall a slug 1,ild have a fl ow rate or cont a in concentrations or qualities of pol 'i:.ants that exceed for any time pe riod longer than fifteen (1 5) mi nutes more than fi ve (5) times the average twenty-four (24) hour concentr ation, quantities , or fl ow during norma l operati on. 6, Any water or wastes containing a toxic substance in suffic i - ent quan tity, either singly or by interaction with other substances, to injure or interfere with any sewage treatment process, to consti- tute a hazard to humans or to animals, or to create any hazard in the waters which receive the treated or untreated sewage, B. Specific Dischar ge Liulitations. The Oistri~t shall est ab- 1 i,h in its Rules and Regulations, and may from time to time amend, spec i - fic li mit ations governing the discharge of pollutants into the System, and into the Sewer System of the Special connector, By this reference, such limitations are herein incorporated. Se ct ion 408. Genera 1 Requi reinents Regarding Deleterious Wastes. None of the foll owing descr i bed sewage, water, sub sta nces, materi a 1 s or wastes shall be dischar ged into the District's Sys tem ; and also the gov- erning body of the Special Connector shall prohibit and shall prevent any discharges from any outlet into its Sewer System, if such discharges cause or signif ica ntly contribute t o a violation of any of the requirements con- tained herein : A, Sewage of such a nature an d de li vere d at such a rate as to impair the hydraulic capacity of the System, normal and reaso nable wear and usage excepted; -19- 8. SewJye of such quanti ty, quality, or other nature as to i mp a i r the strength or the durability of the sewer structures, equip111ent or tre.:ment works, either by chemi cal or by mechanical action; C, Sewage having a flash point l owe r than 187 °F_. as determined by th e Tagliabue (T ag,) close cup method; D. Any radioactive substance, unless the District shall have given writt en consent to Its disch arge; E. Any garoage other than that received directly into the Sewer System of the Special Connector fro m dome s tic an d co11111ercia l garbage yr in ders i n dw e llings, res taurant s , hotels, s to res , and institution s , by which suc h garbage has been shreddecl to such a degree that all particles will be carried freely under flow co,·1i t ions nor mal ly preva ili ng in public sewers with no particle great er than one-half (l /2 ) Inch in any dimensio n; F, Any night soil or septic tank pum pa ge , except by permit in wr iting from th e District at such points and under suc h conditions as the Dis tr ic t may stipula t e in each pe rmit; G, Sludge or other material tram sewage or industrial was t e treatme nt plan t s or from water treatment plants, except such sludy e , t l,ie discharge of wr.ich to the System shall be governed by the provisio ns of this Agr eem ent herein set forth or as othe rwise authorized by th e Dis - tri Ct; H. Water which has been used for co ol in g or hea t trans fer pur- poses without recirculation, discharged from any system of c~ .. densation , air conditioning , ref rigeration, or si milar use; I. Wate r accumulated in excavations or accu mulated as t he re- s ult of grading, water taken from the ground by well points, or any other drai nage associated with construction; J , Any wa ter or wastes containing grease or oil or ot her sub- s tances th at will solidify or become discernab l y viscous at temperat ures between J2 °F and 150°; K, Any wastes that contain a corrosive, noxious, or malodor ous mater1 ,, ~r substance which, either s i ngly or by reaction with other was t es, i s capable of causing damage to the System or to any part thereof, of creat ing a publ ic nuisance or hazard , or of preventing entry into the sewers for m~inte nanc e and repair; L. Any wastes that contain concentrated dye wastes or other wastes tha t are eitner highly colored or could become highly co l ore~ by reacting w·th any other wastes, except by permission of the Di strict; M. Any wastes which are unusual in composition , i.e., co ntJ in an extremely large a0.,ount of suspen ded sol ids or ROD; are hi gh in dis- solved solids such ,s sodium chlorid e, cJ lc ium chloride , or s~liu111 sul- fate; contain substances co nd ucive to creating tastes or odors in drin ki ~g water supplies; otherwise make such 11a ter s unpalHable even Jfter conven- tional water purif i cation treatment; or are in any other way extremely -20 - unusual unl ess th e District de termines that s uch wast es may be admitted t o the System or shall be modi fie d or treated before being so ad•n it ted ; N. Any substance which may cause the District's effluent or any other product of the District such as residues, sludges or scum s, to be unsuitable for reclamdt1on and reuse or to interfere with the reclamati on process, In no case shall a substance discharged to the Sy stem cause the District to be in non-compliance with sludge use or disposal criteria, gu1del 1nes or regulations developed under Sect io n 405 of the Fed e ral Water Pollution Control Act; any criteria, guidelines, or regulations af1ecting sludge use or disposal developed pu rsuant to the Solids Waste Dis posal Act, the Clean Air Act, the Toxic Substances Control Act, or State crite- ria appl 1cab l e to the s l udge manage ment method bei ng used; 0. Any substance which may cause the 01 strict to viol ate its National Pollutant Discharge Elimination System (NPOES) Pe rmit or the receiv ing water quality standards. Section ~09. Pretreatment/Industria l Waste Control Proyram. A. Progra m Requi r ements: l. All Municipalities and Special Connectors are requ ired to design and administer Pretreatment/Industrial Waste Control Progra,ns whi ch are in accordance with this Articl e IV, and which will enable the District to comply with all Pretreatment and effluent li mit ation co nd iti ons of its National Pollutant Oi ;charge Elimination System (llPDES ) Pe rmi t and applicable sludge disposal re gu lations. 2. The Special Conn ecto r will enact and enforce an ordina nce or res olu t ion whic h conforms to 40 cm §403.U(f )(l) Pre treatment Program Requirements, as from ti me to ti me ame nde d, for legal autho ity an d containing all other legal provisions mandated by this Ag reem ent. The Special Connector shall formulate, f und, and implement proce dures which will enable compliance with the "P rocedures" and "Fund i ng " requirements conta ined in 40 CFR §403.8(f)(2) and (3) of the Federal Pretreatment Regul at 1 ons. 3. The Special Conne ctor shall adopt a nd enfo rce in it s ordi - nanc e or resolution provisions which ar e i n conformance to t he fol- lowing provisions: (a) A provis ion requiring any Ind ustr ial user responsib le far a significant accidental or unusual dis charge to notify ifMlediately both the Spec i al Co nnec tor and the District . (b) A provision pr eclu1ing, except ,,here authorized by Categorical Standards, the use of dilution to attain conformance to Pretreatment/Industr i al Waste Control St andards, and au t hor- izing the Special Con nector t~ set mass I imi tations for any Industrial User using im proper dil.1tio n , (c) A provision forbidding and, where possi ble, penali t!n g the knowing transmittal of false informat io n by an lndus tria , user to the Special Connector or District. -21- (d) A provision requiring the installation of all necessary monitoring and Pretreatme nt facilities by Industrial Users. (e) For a City Special Connector, a provision applying civ - il or criminal penalties against Industrial Users which viol ate Pret reatment/Industrial Waste Control Standards and Require- me nts. For a Special District Special Connector , a provi sion for contractual terms providi ng for liquidated damages to be assessed against Industrial Users whi ch violat e Pr et reatmen t/In- dustrial waste Control Standards an. Rtquirements, Where possi- ble, such penalties and li quidat e(. damages shall be set at a level determined by the District l J ,i •·llvide a reas onable degree of deterrence to violatio ns. (f) A provision ado pti ng discha '•J e limitations for Users at least as stringent as the correspon•ll ng limitations in Section 407 of this Agreement and Se ction ) n f the Rules and Regula- tions, (g) A µre vision requiring that In dustrial users agree to act and all ow the District to act as provided under the provi- sions of this Article IV. (h) A nrovision requiring that any User di sch arging ariy toxic pollutants which cause an increase in the cost of mana gi ng the effluent or the sludge of th e ~istrict's treatme nt 1,orks shall pay for suc h increased costs . 4. The District shall consult and cooperate with the Spec;a l Conne cto r in determining the need for enacting any supp 1 emer,ta 1 amen dme nts to the ordinance or resolution whi ch are necess ary to ensure the effective administration of the Pretreatment/Industrial Waste Control Pro~ram, The Dis tri ct may pr ovide guidance to the Spe- cial Connector on all pertinent ma tters, includ i ng, but not limited to, Special Connector user fee systems, Special Connector permit systems and Special Connector administrative proce edings and hearings to determine the nature and extent of Industrial User violations. B. Dilution Prohibited , Except where permitted by Categorical Standards, no Industrial User ma y use dilution of a discharge as a partial or complete substitute for adequate treatment to attain compliance w;,h Pretreatment/Industrial Waste Contro l Standards. The Di strict may set or require a Special Connector to set ma ss limitations for those Industrial Users whici1 are using improper dilutiori to meet a Pretreatment/Industrial Waste Control Standard. C. Acciden tal or Unusual Discha r ge , An Indust ria l User shall immediately notify the District and the Special Connector in which it is located of any industrial waste discharge which may disrupt Syste m treat- ment processes or operations, damage Sy s tem facilities , cause a NPOES Pe ,·- mit violation at the District's treatment plant or de grade sludge quality excessively, or which differs significantly in quantity or qu ality from di scharg .~s under norma 1 operat i ans . -22 - O. Cat eyo r ic al Standards , I. Once pro mulgat ed, Categor I ca 1 Standar ds for a part ic ular in dustrial subcategory, if more stringent, shall supersede all con- flicting discharge limitations contained i n or issued pur s uant to the Art i cl e IV, as they apply to that industrial subcateg ory . The Di s - tri ct shall notify all affected Special Conn ect ors of pe rtin ent 40 CFP §403,12 r e port i ng requireme nts , 2. Th e District sha ll make the fi nal de t e rmination, sub j ect only to 40 CFR §4D3 .6 f ede r al or state revi ew, as to whether a par- ti c ular Industrial Us er is s ubje ct to a parti c ul ar Categorical St and- ar d. Th e Dist rict may re qu ire t hat the Spec ia l Connector coll ec t and for ward t o t he Dist r i ct a l l info rmation nece ssary to mak e th is deter- minatio n. E. Signifi cant Industria l Users . I. Th e Special Connecto r shal l contro l , t hrou gl1 pe rmit , con - t r act or simila r mea ns, in dustria l waste di s ch arge s wi thin its se rv- ice area . 2. A Sig nif i ca nt Indu s t r i al Us e r i s defined as any Indus tri al Use r whi ch di sc ha rges was t ewa t er (i ) at a rate of flow greater than 25 ,000 gallons per average work day, (ii ) containing toxic poll utants as de f i ned pursua nt to Sect i on 307 of the Cl ea n Water Ac t, 33 U,S.C . 1251 et seq., (ii i ) determined by the Distr i ct, the Colorado De part - ment of He a l th or the U.S . Environmental Protect i on Agency to ha ve a s ignificant impact, either singly or in cnnjunction with other indus- t r i al wastewater, on the Sewage Dispos al System, sludge qua l ity , Sys t em effl uent quality or a ir qual i ty. 3. The Distr i ct shall make t he f inal determinat i on as t o whether a particular Industrial User i s a Significant Industrial User. To this end, the District may requ i r e that a Special Connector collect and forward to the District al\ inf ormation necessary to make this determination. F. Require ments for In f or mation Tra nsmittal . The Sp ecial Con- nector shall file with the Distri ct a certified cop y of (i) its i ndu s tri al waste discharge ordinance or reso l ution, and any amen dments thereto, and (ii) each industrial waste permit or contract i ssued pursuant to the ord i- nance or resolut i on, Also, the Spec ial Connecto r shall de l iver to the District in a timely fashion copies of all industrial monitoring reports, includin g 40 CFR 403,12 co mp li an ce r e port s . Th is records requir emen t shall apply both to self-monitor ing conducte d by in dustrial was t e di s- chargers in ac cordance with federal, stat e , Di str i ct , or local require - men t s, and to co mpliance mon i tor i ng by each Spe c ial Conne ctor. G. Progr am De legat ion and Gui danc e . l. Program Delegation. The Special Connector may ent er into an agreement with the Dis ~rict providing the District with the le gal authority to carry out technical and administrative proc edures ne ce s - sary t o im plement the Pretreatment/Industrial Waste Control Progr am -23- I a t th e l oca l l eve l, These pro cedures may in clude , among others , upd atin g th e I nd ust r ia l waste su rvey, providi ng tech nica l se r vices , such as proc es s chem i c al analys is and en gi nee ring advice, r elating to the issuance and review of industrial waste di scharge pe rmits , in- s pec t ing and mon ito r in g i nd us t r i al wa s t e d i s char ges , waste discharge f acilitie s and operat io ns of perm 1t tees , and pr oviding technical as si s tance fo r l oca l enfo r cem ent act io ns. Wh e re Prog ram de l e9a t iun occurs , th e Di str i ct shall bi l l t he Spec ial Co nn ector f or the co s ts incurred by t he Dis t rict i n conjunc ti o,, wit h th e aa m1nistration of the Pr ogra m on beha l f of the Special Co 11n ector, 2. Program Gui dance . The Dis tr ict shal l issue Hul es and llegu . lat i on s ,ind guidelines to assis t und t o eva l ua t e the pe rformance of the Special Co nn ecto r whic h chooses t o adm in i st er, wholly or pM t ly , th e Pr et r eatme nt/ Industria l Was te Control Pro gram on beha lf of the Di st ri ct , These Rules and Regu l ations and guide lines shall be bi nd- ing on th e Soecial Connector and adm is s ib le as evidence i n any admin - i s t ra ti ve 01 l eg a l proce ed i ng i nt end ed to det ermine whether the Special Connecto r ha s exec uted its Prog r a111 llespo ns ibil i ties in sub- stanti a l co nr ormance to Federal Pr etreatme nt Regulatio ns and the r equi r ements of t his Agr eemen t. H. Progr am Review . The Dist rict shal l review Spec i a l Connecto r ordinanc es and amend ments thereof for conformanc e to 40 CFR §4D 3.U(f)(l) Pretreatme nt Requi re ments fo r mini mum le gal aut ho ri ties and for t he in - c l usi on of al l ot he r legal provi sio ns mandated by t his Agr eeme nt. The Di stri ct shall periodically rev i ew the enforc ement e ffort s of Spec ial Connect ors to ascertain whether Pretreatment /I ndust ria l Waste Control Re - qulr e,n ent s an d St andards ar e bein g d i l I gently en f or ce o at the l oc al level, lnsof.ir as t he Spe cia l Conne ct or administers t he PretreaL111ent/ Indust ri al waste Control Progra m, ~h e District sha ll periodical l y revi ew the Spe cial Connector's proc edur es, 11 :c l udi ng , but not li mi ted to, proce- dures f or updating the industr i al waste survey, and for inspecting, sa m- plin g , an d monitoring i n1 ustrial waste di scharg es, to ensure that each such Spe ci al Connector h ad mi nister i ng the Program in technical conform - an ce to "Procedures" and "Fundin g" requirements under 40 CFR 403.8(f )(2) an d (3) of the Feder a l Pr etreatment Reg ul ations and t o th e provi si ons of this Agree ment, Any signific ant Pr og ra m cha nge s shall be sub j ect t o Di str ic t ap proval. I. Remed ie s. 1. Emergen~y Remedies. I/he re a discharge to t he System r eas on- ably appea r s to pres ent an imminent enda nge rmen t to th~ he Jl th or welfare of persons, or prese nts or may present an en dangerm ent to t he environment , or threa t ens t o i nt erfere with the operation of the Distr ic t, the Distr ict shall irrrn ediat el y initia te i nvestig at i ve pr o- ced ures to id entify th e sour ce of th e discharg e , and t ake an y steps nec ess ary to halt or prevent t he discha r ge . If ne cessa r y , the District shall seek injunct i ve rel i ef against the violating Sp ecial Connector and any Industri al Us er contr i buting s i gnificantl y to the emergency condition . -24- 2. l!out ine Remedies , If t he District determines that a Pre- trea tment/Industrial Wa ste Cont rol Prog r am as admi nister ed by the Special Co nnector i s not in compl lance with Pret reatment/Industrial fl aste Con trol Requir em ents, or that the discharge from a Special Con- nect or is no t in compl ianc e wit h Distr ic t Standards, the Distr ic t sh al 1 issue a notice setting forth the Requirements and Standards not being com pl ied with and di r ecting the Special Connect or to attain conformance to these Requirements and Standa r ds within a pe r iod of ten (10) days. 1f after ten (I D) days , th e Special Connector has fa i led or re- fuse s to comp ly wi th this noti ce , the Di strict ma y i ssue an addi- tional no tice setting for th remedial act ions to be taken by the vio - lating Specia l Connector and a time schedule for attai ning comp l iance wi t h all Pr etreatment/In dust rial Was te Cont r ol Requirements and St an dards , If after thirty (JO) da ys notice, the violating Speci al Connector has not ta ken necessa ry steps to correct the violatio n , the Dist r ict may assume in whole or in par t Pre t r eatme nt/Industrial Waste Control Prog ram respons ib ilities in l ieu of the violatin~ Special Con nector . The Distri ct ma y cont i nue in t his cap aci ty until the vio - lating Special Conn ecto r agr ees to the or ig i na l terms of th e not ice and any additional terms which the Distr i ct f eel s are necessary t o ens ure ongoing complia nce by the Sp ecial Connect or with all Pret re at - ment/Industr i al Waste Control Requirements aed Standards, · J , Prog ra m Preempti on. Whe re the Dist rict pr eem pt s the Spec ial c on nect or in t he execution of Pr etreatment/Industri al Waste Control Pro- gram respo ns ibili ties, the District shall di r ect ly enforce Fe deral Pre - tre atme nt Standards, inc ludin g Ca teg orical Standar ds , and the provis ions of Art icle IV of this Ser vi ce Contract aga inst the Indu stria l Users locat ed wi thin th e ser vice area of the Special Connec t or . The Distric t ma y reque st t hat all ind ustri al self-monit orin g r ep or ts, including those requ i r ed unde r 40 CF R §403.12, be conveyed d irect ly to t he Distr ict . Moreover, t he Dist ric t shall carry out all inspection an d sa mpl ing act iv i - ties necess ary to monitor compliance with Pr etreatment/Industrial waste Control Standards and Requirements. Whe re Program pree mption occurs, the Distr i ct s hall have the ri ght to seek inju nct ive relief against th e Spe - cial Con ne ctor and any Indu s tri a l User in ord er t o obta \ f ull com pl i ance with Pr etreatme nt/ Ind ustrial waste Control Stan dards and Requiremen ts, The District shall bi ll the Speci al Connec t or for cost s i nc ur red by th e District in co njunct ion wi t h the adminis trat i on of the Pr ogram i n lieu of the Spe cial Co nnector . The Distr ict shal l have the · right to re quire the cessat ion of any industr ia l wast ew;i t e r dischar ge in vio l at ion of Pretreatme nt/li1dust r i - al Waste Control Standards and Requ irements. Where the District f i nd s an Industrial Use r t o be in vi ol ati on of any Pr etreatment/Industrial Waste Control Standard or Requirement, the District may re qui re the Industr i al User to ent er into a bilateral cont r ac t with the Distr ict co nt aining any cond it ions, including condition s r elatiny to th e i nstallment uf pretreat- ment or moni tor i ng facilities, necessary to ens ure compliance with Pre - treatmen t /Indu st r i al Waste Contro l Standards Jnd Req uir ements , At tl1e discret i on of t he Distr ic t, the se conditions ma y be incorporat ed into t he Special Connec tor indus t rial waste discharge permit or con t rJct once Progra m re sp onsibilit i es are retur ne d to the Special Co nn ec t or , -25- K. Extra-Jurisdictional Industria l Users. The Special Connec- tor sh all have the responsibility for th ose Industri a l Users located out - side its corp or ate li mits, who discharge indu stria l wastewater int o the Sewer Sys tem of the Special Connector . Each extra -jurisd ictional Indus - trial user shal l be subject to an ord inan ce , resolution or equivalent source o f legal aut hority which con tains 40 CFR §403 .0(f)(J) 111 ini 111u111 legal authorities and all other legal provisions ma ndated by this Service Con - t ract . Each ext r a -jurisdictional Indust r ia l User shall also be included i n a Pretreatment Prog ra m which substantially conforms to 40 CFR §4DJ .8- (f)(2) and (J) "Pr ogram" and "Funding" requirements . To this end, the Special Connector shal 1 make contractual ar ran gements with the ext r a- Jur isdictional legal en tity exercising powers over the Industrial Use r providing either for t he inclu s ion of the Industrial User i n th e Dis - trict 's Pretreatmen t/Indu str ial Wa ste Control Program , or f or f ormal review of a Pret r eatment Progra m administered by t he ext ra -ju risd ic itona l lega l entity. Where necessary to obtain compliance with Fed eral Pretreat- ment Regu lat ions, the Special Connector shall ente r into a separat e con t ract with e ach extra -Juri sdictiona l In dus tri al User· discharging into i ts Se>ier System . The Spec ial Co nn ector sha ll al so secure by contract, as it ap - pli es to ext ra-j ur i sdi ct ion al Indus trial Users, for each of the following Distr ict r ights: (i) the r ight to inspect, sample , and mon ito r Ind ust rial users, (ii) the right t o terminate service to an Industrial User on an emerge ncy basis, (i ii) the ri ght to determin e the app li cability of Cate - goric al Sta ndards and to dete r min e Significant Indust r ia l Users, (iv) the right to rece ive copies of al 1 mon it oring report s , (v) th e right to ex - plore all Artic le IV disc harge li mitations, and (vi) the righL to ac t in 1 ieu of t he Spe ci al Conne ctor in exe cuting Pretreatment/Industrial Waste Cont r ol Pr ogram respo nsibilities. Where the Specia l Connector and extra-juris diction al legal enti - ty fail to exe cute their Progra m r e sponsibili ties in obtaining co mpliance by extra -jurisdictional In du stri a l Users with all applicable Pr etreatme nt - /Industrial Waste Control Standards and Requi rernents, the Di stri ct sha l 1 have ful l recourse to the remedy provision s of this Se rvice Contra ct as they app l y to the Specia l Connector receiving the i nd ust rial wast e dis- ch ar ge in question. L. Exemptions. The Special Con nect or admini ster i ng a Pretre at- ment Progra m, separate fro m th at of t he District, which has be e n approve d by the Regional Admin ist rator of EPA or t he Director of the Water Quality Control Divis ion of the Col orad o Depa rtment of Health in acc or dance wit h 40 CFR §403 .11 of the Federa l Pre tr eatment Regulations, may be exe mpt ed from complian ce ,i ith certain pro visio ns of this Section 411, as determined by t he Dis t ri ct . -26- ARTICLE V DI STR JCT RUOGET 1 ANN UA L CH ARGES 1 SERV I CE CHARGES AND THE IR ESTAB LI SHMENT AND CO LLECT I ON Section 501. Annual Budget. A. Preparation of Prel im ina ry Budget, Th e District shall pr~- par e annually a preliminary bu dget , i nclu di ng therein, but no t li mi ted to, Ope r ation an d Maintenance Expenses, Debt Serv i ce, provision for re qui r ed and reasonable reserves, and any pro v ision for capita 1 expenditures f or the ensuing F, ;ca l Yea r . Every pr elimi nary budget and every Annua l Budget sha ll also se t forth a st atement of the sources of fu nds to be avail ab l e to defr ay su ch exp enditures, includi ng wit hout l im itation the Ann ual Cha r ge to be paid by each Municipal tty an d Specia l Co nnecto r, B. Hearing on Preli mina ry Budget, The Dist r i ct shall hold a public hearin g not l ess th an seven (7) month s bef ore the be ginning of any Fi scal Year, at whi ch any holde r of any se cur ity i ssued by the Distr i ct or any Municipality may appear in person or by agent or attorney and may prese nt any r bj ect i ans he may have to the fi na 1 adopt ion of the budget for s uch Fiscal rear . ~otice of the tim e and place of suc h hear ing shall be publ ished at least once i n a newspape r at least ten (10) days before such hearing, and the District sha ll at l east t en (10) days before su ch hearing cau se a co py of such notice and a copy of the preliminary budget to be ma\led to the Spec i al Connector . C. Adop ti on of An nual nuag et. On or before the first <lay of August ne xt preced ing each Fi scal Year, the Dist rict sha ll finally adopt t he Annual Bu dg et fo r such next su cc eed in g Fisc a l Ye ar. D, Qua si -Annua l Budget. If for any reason the Distr ict shall not have adopted the Annual Budget on or before the first day of August nex t pre cedi ng any Fts c3l Yea r, the preliminary bu dget fo r su ch year or ot he r wise the budge t fo r the preceding Fi sea 1 Year sha 11 be deemed to be in effect for such Fi s cal Year until the Annual Bud ge t for such Fi sca l Year is adopt ed. E. Amen dment of Annual Bu dget. Th e Di s trict may at an y ti me adopt an amended Annual Oudget for th~ _then curre nt Fis cal Year. Section 502. Limitations on Operation and Maintenance Ex- penses. The Distr ict shall not incur Ope ration and Maintenance Ex pen se s in any year in excess of t he r easonaDle and necessary amount thereo f. Th e Di strict shall not expend any amount and shall no t incur any in debtedness for maintenance , repa i r, and opera tion in excess of the aggregate amount prov i ded for Operation and Mainte nance Expenses in t he Annu al Uudgot (i f any) the n in e ffect, subjec t to the prov isio ns of paragraph E of Sect i on 50 1 hereof . Nothing i n this Section 502 hereof contained sha ll li mi t th o amount which t he District may expend for Operation an~ Maint enance Ex- pens es in any Fiscal Yea r, provided any amounts expend ed there, or in ex - cess of the Annual Oudget (if any) shall be rece ived by the District fro m -27- some sou rce ot her than the income of the Syst em ; and the Di str i ct shal 1 not make or r ece ive any re i mbursement the ref or out of s uch income , except to the ex tent the Board may determine to use any mon eys i n an y rese rve f und or si nkin g f und available t her efo r, Section 503. Levy, Co ll ection, and Calculation of Annual Charges. With respec t t o al 1 sew age delivered into t he Sys tem and for al 1 direc t or i ndirect connection wit h and all use and ser vices of t he System , ex ce pt for any Servic e Cha r ges app er taini ng onl y to any Inter ce pt or s , the Di str i ct sha ll make, impose and co llect Ann ual Ch arges in ac corda nce wit h t his Ag reemen t, as the s ame ma y be amend ed or ot herwise s upplement ed from time to t i me by contr act . Servi ce Charges appe rtaining to th e Intercep- tors may be f i xed and collected by the Dis t rict when eve r the Boar d so determi nes; prov i ded , ho wev er , t hat no Service Cha r ge s sh al l be fixed a fter the Bo a rd has fixed any An nual Ch arges hereunder. Cla ss ificat i on for charges shall be reasonable, The charge s sha ll be uniform withi n cl assifica tion and shall be bas ed upon th e amount and quality of sewage delivered i nt o the System and fo r al l direct and indire ct co nne cti on with and al I us e and s e rvi ces of the System, exc e pt for 111 i ni111 um char ge s , ctiarge s fo r the av a i l abi lity of service or rea di ne s s to ser ve Dy the Sys t em , r easo nabl e pen alti es f or de linquenci es, incl ud ing i nt ere st th er eon f r om any date due at a rat e of on e and one-ha I f per ce ntum ( I 1/2%) per month (o r fraction ther eof), reas onabl e attorneys ' fees , and other costs of co l lec tio n. In conf ormity wi t h the Se rv i ce Co nt ra ct and wit h the Act, th e Distri ct may r ev i se the me t hod for the all oc at ion of the An nu al Charge s or t he method of the de t e rmi nation of rates . as pr ovided i n Sche d- ule B he r eof . Said rates sha ll at all times be ca lc ul ated and pres cr i be d and fro m t i me to tim e revised , and such Annua l Cha rges sha l 1 be computed , made , i mpo s ed , and collect ed so that the i ncome of the System coll ected , exce pt for any Cost of the Proje ct cap italized with the proceeds of b~nds or ot her s ecuri ti es of the Di strict, except f or an y Service Ch ar~es appe r- t aining only to Int e rc ep tors , and except f or any ot her moneys ava ilabl e th erefor (incl ud ing any proc eed s to the Dist ri ct of use and occupancy in suran ce), will be at least suff i cient : A. To pay at al l time s all Operation an d Ma intenance Expenses and at the end of each Fiscal Year to maintain t her efo r reserve require - ments; B. To pro vide in each Fiscal Ye ar a su m equal to the Debt Serv - ice for t he Bond Year CO IMl enci ng in such Fiscal Yea r computed as of the beginning of such Bond Yea r ; C. To pro vide at all tim es for any defic i ts of the Distr1ct resu l ting from f ailu re to r eceive any Ann ual Char ges or any su ms pa, • .il e to the Distr i ct by any Special Connecto r or fro m any ot her ca use ; D. To provide at al 1 t im es such sums fo r res e rves and for si nk- ing funds as may be fix ed by the Service Contr ac t or other contract of the District or as may be ot herwise de termi ned fr om timr to ti me by t he Uo ard (subject to any er.isti ng contractual l im itations ); E, To provide moneys required by an y contrac t of th e District or otherwise for .,y capital expenditure , in cludin~ wit ho ut li mi t ation -28- Acquis i tions, l111prove111 ent s , Ex tensions , and Alterat io ns , or any other pur- pose author i zed by th e Act (no t here inabo ve pr ovided) and as so dete r111ined by the Board; and F. To co 111 pl y at al l ti mes i n all respe ct s with the terms and t he provis ion s of any resolution of the Board and of the Act and t o pay and to dis cha r ge all ot her char ges or liens payabl e ou t of the in co111e of t he System when due and enforceable . Section 504, Compl lance with Service Contract and Enforcement of Annual Charges. Annual Cha rges shall at all ti 111es be fixed and col- lected so that the District can pay without default any obligation thereof for which prJvi s i on has not otherw i se been mad e . Th e Di strict ;hall not release t he obli gation s of the Spec ial Conn ecto r unde r thi s Agree 111e nt or other Agreements as from time to ti me amended or otherwise supplemented, shall ta ke all reasonable measures permi tted by t his Agree ment or by the Act or othe rwi se by law, including but not l i mit ed to the enforcement meas ures stated i n Section 610 hereof, t o enforce pr om pt payme nt to it of all Annual Char ges . Th e District s hal l at a ll ti mes (t o the extent pe r - 111 itted by the Act or otherwise permi t t ed by law) defen d , entorce, pre- serv e , and protect the rights, benefits, and privileges of the District and o f any ho l der of any bond or other se•;urity of t he Di stri ct unde r or with res pe ct to this Spe cial Connector s Aqree11ent, Section 505, Annual Charges in Lieu of Service Charges. The Annual Charges payable by the Special Cor.nec~ur to the District un der t he pr ovi s ions of this Agreement (in the absenc e of any modifi cation to the co nt rary herea fter by contract) are ano shall be in 1 ieu of Ser vi ce CharJes with regard to the Sewer System of such Special Connector an d to real pro pe rt y r.onnected to t he Sewer System of the Specia l Co nne ctor . Section 506. Meth ods for Allocation of Annual Charges and Oetennination of Rates. The Annual Char ges sha l l be al located and rates s ha 11 be determined as provided in th e method for the a 11 ocat ion of the Annual Charges and the met hod for the determination of rat es, attached hereto and ma rke d "Schedu le B," and by th i s reference made a part hereof. The unit charges ap pl ic ab le with respe ct to se wage delivered an d dis - charged i nto the System by any Municipalities or Special Connectors shall be at all ti mes uniform as to all Municipal i ties and Special Con necto rs for the same t;pe , cl ass, and amount of use or servi ce of the System and shall give effect to quantity and quality differential s in substa ntia lly the prop ort i ons refl ec t ed by said methods and shall not be more favorable to any Municipa lity or Spec i al Connector than the un i t charges J ppli cab le wit h respect to sewage so delivered and di sch arged by any other Municipal- ity o~ Specia l Connecto r. Section 507. Sewer Connection Charg e . In add i tio n to other Annual or Service ~h arges, the Di str ict sha l l impose and collect Sewer Connection Charges i n accordance with t he Ser vice Contract and Schedule C attached her eto 1 as the same ll hly bu ame nded or ot hen"i se su µµli.:!me ntl!d fr om time to time by the Board, for eac h new or altered co nnection to a sani - tary sewe r or sewer drainage system served by the Oistrict . Th e Sewer Connection Charge shal l be assessed to the Special Connector (including the char ges for t hei r connec t or s and other s ) on the bas i s of t he number of -29 - I I ne w or all e r ed "sinyle fam ily r esid e ntia l equivalen t " conne cti ons t o a Sewer System ,v hich i s directly or in di r ectly served by the Di st r i ct Sy s . t ern . It sh a l l be the responsibil i ty of the Special Connecto r to ,1ff l r m and repo r t the number of new or al t ered "single f amily residential equi va - lent" c onne c ti ons to the Di str ic t. The Se wer Co nne c t io n Charge for eac h new or al tered "s i ngle fa mil y r esi dent i a l eq uiv a l ent " shall be de t ermined annu ally as provi ded in "S c he dule C," Subje ct to the 9-1 -77 , th e 11-1 -82 and t he 5 -1-U 2 Bo r,1 Re s olu - tions an d t he proceedi ng s auth ori z ing the issuance of obli gat ions of th e Distr i c t whi c h may he r eafter be i ss ued , Sew er Co nn ec ti on Ch arg e , will be a ssi gn ed to the payment of an nua l princi pal and i nt ere s t (de bt servic e) on obligat i ons o f th e Dis t r i ct , as au t hori zed by t he vot e rs of the Dis tr ic t i n th e 198 1 Bond Ele ction, and oblig . t io ns hereaf t e r issued to finan ce ot he r g rowth-relat ed pro jects as may f r om t i me to tim e be determ ised by the •oa rd of Di rectors. To the ext e nt th at receip t s f r om Sewer Conne ction Cha rges exceed those re quired f or such ann ua l debt serv i ce , \e1·1e r Connecti on Cha ry es may be use d , subJec t t o suc h r eso l ut io ns and other or oceeding s, to fund debt service bond r e se rves or to fund f utu r e cap1L al const ru c ti on pr oj ects rela te d t o growth . The number of new or alt ered "s ing le f amily residenti al e quiva - l ent " conn ec t i ons as sessed for each new or altered i ndividual co11ection t o t.he Oist r i ct System shal l be dete rmi ne d in ac cordance with Sche~J l e C. The Sewer Con nect i on Ch arges and t he ad mi ni stration t he reof as prov id ed i n Schedule C shall be rev i ew ed .n nua l ly and may be cha nged by Reso lut i0n duly ena c ted by ac ti on of the Boa r d of Di rectors , 1<i t hou t addi - t i onal an,end m~n t t o th i s Spec i a l Con ne cto r s /\yre ement. ~eL ::·,,,o 508. Defi nition of New Conn ection and Altered Conne c- tion. F , Lr e pJrposes of th is Agree ment and all Rul es and Reg ulati ons r elated !~ar,,Lo i ss ued by the District, a "new con nection" shall mea n th e phy s ical attachment of a new sewe r 1 in e to the sewer system s er vin g a dw ell i ng or bui ldin g . An "al t ered connec tion " sha ll mean any bu ilding or premi se that is reco nstructed or upg r ad ed , and e i t her i ncre ase s t he numbe r of si ngle family l iv i ng units result in g i n add ea f l ows or in st a l l s a la rg er wate r se r vice t a p at. t he existing locat i on. Such bu ild i ng or prem- i se sha l l be requ i re d t o pay a Sewe r Connec ti on Charge for th e aaditi onal living unit s e r in c r e ased water se rvice tap size . A buildi ng or premise that is de ~ol ished and r e built shall recei ve a cr edit fo r t he pr e -existing num ber o f single family living units if rec onstr uc t ed as a res id ent i al dwellin g or a credit for the pr ev i ouus wat er ser vic e tap size if r ec on- struc ted as a non -residential bui l ding at t he sa me site , Section 509. Application5 of Sections 507 and 508. Sect i on s 50 7 and 508 of this Ar t icle shall not be construe d to a ff ec t Jny rights t o a sew er tap or penni t which exis ted be f or e January 1, 19U 2 , nor to mak e a Sp eci a l Connecto r l iable to t he Distr ic t f or Sewer Co nnection Char ge s fo r conne cti on to the Se wer System of t he Sp ec i al Conne c tor wh ich w~re µJid for or collected be f or e such ddte . .30. ARTICLE VI PAYMENT ~y SPECIAL CO NNE CTOR S Se c tion 601. Spe cial Connector's Outy to Pay Charges. The Sp eci al Co nnect or wil l pa y to t he Distri ct any Service Charges and the An nual Cha r ges due there fr om to t he Dis t ri ct and rel at i ng t o the Sys t em, as herei n prov id ed and pursuant to th e Act. Se ction 602. Certification of Estimated Charges. On or be fore t he f i r st day of September ne xt pr ec edin g each Fi scal Ye a r, the Di st ri ct sha ll make and del i ve r t o the Spec i al Conn ector su bject to the payme nt t o the Di str ict of any Servi ce Char ge or any Annua l Charge fixed thereby for such Fi sca l Ye ar, th e Distr i ct's certificate stating the estimateo amount of th e Ch arge . Su ch Cha r ge s in t he aggre gate as so certified in any cal - en da r year by th e Oi s t r i ct t o t he Muni c i pa l itie s an d Special Conne ct or s sha li be s u ffi ci ent to pay t he amo unt s estima t ed to be ne e~ed by th e u ,s- t r i ct fr om Charg es i n t he ne xt f ol l owing Fisc a l Year as :;hown in the An- nual Budge t th e refo r. An y suc h ce rtific ate may adj us t for the Fi s ca l Yea r i n v1h i ch th at certif i cate i s re nd ered, regardless of any ot her ad j ustment th eret ofor e or t he reaft er made , th e estimated Charge previous ly so ce rt i - fie d t o t he Spe c ial Connector, Each such adjustment shall be ba sed u·pon revised est imates resulting from the operation and maintenance of t he System by the Di str i ct for a port ion of the current Fis ca l Year pr ior to the date of any such adjusted estimate , Section 603. Preliminaries to Payment by Special Connectors. Eac h Sp ecial Con nector, after t he receipt of each such certificate , sha l 1 make al l budget ar y an d other pro visions or app rn pr ia tions nece ssary t o provide f or and to authori ze the payment by the Special Conn er.t or t o t he District of t he Charg e for t he next following Fisc a l Year as the Cha r ge beco mes due and payable, sub j ect to any debit or credit r esul ' 1ng fr om any such adjusted estimate of any prior Charge and from any fin al ad j ustme nt of any such Charge, as hereinbefore and hereaft er pr r vide d . Secti on 604. Time of Payme11t by Special Co nne cto r. Each Sp e - c ,al Connec t or wi ll pay to the Di strict in each Fiscal Year the esti mat ed Charge for that year in f our (4) sub stantially equal quarterly in stal 1- ments, payab l e on or be f or e the 15th days of March, June, September, an d December i n the Fiscal Year, sub j ect to any debit or c r edit not t here to- for e made and result i ng from any adju s ted esti mat e 0 1 final adjustme nt of any Cha rge for any previous Fi seal Year. Section 605. Final Adjustment of Each Charge. l he Charge fi xed or i mposed against the Specia l Connector for eac h Fisc a l Year sh al 1 be finally adjusted in amount , regardless of wheth er the original esti mat e thereof shal 1 have been at any ti me or times adju s t ed prior t o t he t i me hereL fi xed f or the f i na l adju stment of the a111ou nt of t hat Charge , The final adjustment of any Char ge for any Fiscal Year shal I be made on or before th e la st da y of Mar ch ne xt f ol lowing t he la st day of t hat Fis c,11 Year. -31- Suction 606. Heal'ing on and Notice or Final Adjustment. Prior to maki ng any final adjustment of any Charge for any Fiscal Year, as pro- vided in Sec tion 605 hereof , the District shall hold at 1ts regular meet- ing 1n Ma rch next following the last day of that Fiscal Year a h•l aring on the proposed final adjustment. At the hearing any holder of any security issued by the District or any Municipality or Special Conne c tor may ,1 ppe ,1r in persor. or by agent or attorney and may present any objections he may have t o tt,e final adjustm ent of the Charge for such Fiscal Year, Nothing here i n contained shall be construed as preventing the District from making the final adjustme nt aftPr the heari ng but at th e same meeti ng at which the hearing was held, The Distri ct shall at least t en (10) days before such hear i ng cause a copy of such notice to be mailed to the Specia l Con- nector. Section 607. Time of Mak 1 ng Adjustments to Estimated Charges. No twit hsta nding any other provision herein, the District in its absolute discretion ma y adjust the esti mated Charges for any Fiscal Yea r and may certi fy an y debi ts and cr edits resu lting ther e from to the re spective Spe cial Connector at any ti me or f rom time to ti me pr i or to the fi nal ,1djust 111e nt therefor made as he rein provided, whenever the Board determines that for any reaso n such adjustment is necessary or desirab l e . Section 608. Payments to Balance Adjustments. Any Special Connector to which is certified by the District a supple menta l Charge resulti ng from any final or other ad justment shall make provision for its payment in th e next annual budget prepared by the Sp ec i al Connector and , i n t he manner provided i n Se ction 604 hereof , sha ll pay the supplemental Charg e i n qua rterly install me nts in th e Fi scal Year for wh i ch that annual budg et of the Special Connector is prepared, as well as the estimated Charge payable the ~e in, unless t he Special Conne ctor has moneys ava i lable to pay , and determ in es to pay, the s up plem ental Charge prior th ereto. Sim ilarly an ., Special Connec tor to which is certified by the District any credit resuHing ri-om any fina l or other ad justment shall make provision there f or in the next annual budget prepa red by t he Special Connector and shall thereby reduce the amount of the estimated Charge payable in the Fiscal Year from which tha t annual budget is prepared, unless the District has moneys available to pay , and does remit t i1e amount of the credit to the Special Conn ector pri or to the payment of the estimated Char ge. Section 609. Li mitations upon Adjustment of Charges. Whe neve r the District adjus t s the Charges · for any Fiscal Year, in cludin g but no t necessarily 1 imi t ed to the final adjustment, the credits to Munic i palities and Special Connectors shall equal the deb ic, to Municipa l ities and Special Co nnect ors pay ing Charg es for that Fiscal Year, except for any supplemen t al Charge fixed or imp osed as a reasonable penalty for an y delinquency, includi ng any interest th ereon , and any reasonable attor neys' fees and any other costs of collecting any delinquen cy, Each suc h finill adjustment shilll be uniform wit hin eac h reasonable clas s ification and shall be based upon the actual amount and qu a! ity of se wage de l ive red int o the System and for all actua l direct or in di r ect con necti on s wi th and a ll actual use and se r vices of the system, exc ep t for any minim um charge, any charge for the availability of service or rea d iness to serve by the Sys - tem, any reasonable penalty for dny delinque ncy, i ncluding any in t ere st th ereon, any reasonable attorneys' fees and any other costs of col lecting any delinquency, Each i!djustment not a final adjustmen t s imi l ar l y shall -32- be uniform within r ea sonable c la ssification and shal l be based upon a revised e stimate of such amoun t of sewage, such use, and such services, subject to such exceptions. Section 610 . Enforcement. If any payment or any part thereof due to the Di strict from the Special Connector shall remain unpaid follow- ing its due date, the Special Connector sha ll be charged 1,i th and 1'1111 pay I to th~ District i nteres t on th e a1:1ounc unpaid fro111 its due date until paid at the· rate of one and one-half per centum (1 1/2%) per mon th (or fracti on thereof); and the Di stri ct in i ts discretio n may charge and co ll ec t Serv- ice Charg es or Annual Char ges from each tlu nicipality or Specia l Connector suff icient to 111eet any default o,· deficie ncy in ilny payment s J,erei n agreed to be made by any Munici pality or Special Connector. If in an y suc h case Charges are so col l ected, the amount ultimately so coll ected by the Dis- trict from any defaulting Municipal ity or Spe cial Connector ,-,i ll he credi- ted aqain st t he amo unt of such tlefJlllt or def l\.:11,Jncy 01· an.v ptt.vment s tl1e11 or thereto fo r e due to the 0istric t r'ro 11r ea ch lluni c i pal ity nr Spuci,11 Con- nec tor to offset s uch def ault or deficiency under the pro visions or th i s Agreement. Eve ry obligation assumed by or imposer\ upon any Spec ial Con- nector l>y thi s Agreement shal l b1~ enforct?able by lhe 01 s tri~t Uy Jpµrop i·i - .ite action, suit, or procee di ng at la1, or in equity; and the Di stri ct c1dy have and may pursue any and a ll remedies pr ovided by law for the enfo1-·c- 1ne nt of such obligation, including the remed ies and processes pro vided by the Ac t wi t h respect to Annu al Charges or othur obligations, as provided in Section 504 hereof and spe cif ically such enf orcement as provide d in Sec tion 510(ml of the Act. Sec tion 611. Character of obligations . Fail ure on the part ot' the Distr i ct or of any \.lunicip ility or Spe cial Connector in any instanc e or und er any circumstance to ob ~erve or co perfor111 fu lly any obligation assumed by or imposed upon it by this Agreement shall not make the Dis- trict liable in damages to a Mu nicipality or Special Connector or relieve a l!unicipality or Special Connector from making any payment t o the (l is- trict or from folly performing any other obligation required of l t 1.1o1der this Agree ment; but such Municipality or Specia l Connector m3,.. lit , and may pursu e any and all other remedi es provide d by l a1·1 for co11 ,,J ci I · n 1•u- forma nce by the Di s trict or such othe r llu ni cipa lity ur $pecial Conne.:to r of said obli gation assumed by or impo se d up on t~e District or suc h other Municipali ty or Special Conn ector. ARTICL E VI l Ml SCELLMIEOUS Sec tion 701. Term of Ag ree ment. Tlli s ,\grce111c nt' shall be in full forc e and ef fec t and shall be binding upon the parties hereto from 1ts effective nate for a period of forty-five (45) years from the ctate of the Se rv i cc Co ntract or unt il the first <lay of January next fo 11 owi 119 the last outstanding bond or note issued by the District, as authorized by subse ction s (5) or (7), respecti ve ly , of Section 32-4 -523 and of all sec- ti ons suppleme nta l thereto of the Act, 1•1 hichever be lat.er. Thereafter -33- I th i s l\yr ee111e nt shal I continue as a bi nding contr act to the ex t ent per111it - ted by law from year to year until a Dis t ri ct Offi cer fil es with the Se c- r etary or Clerk of the par ty here t o a not i ce t hat t hirty (30) days af t er the last s uch f il ing or on any date designated in the notice following the expiration o f such thirty (30) da ys' period this llgree111ent shall than be terminated, Se ction 70 2, Se c urit i e s of Ui st r ict . Al I bonds , notes , or other obligations of the District refe r red to ir, this Agreement or to be issued by the Dist r ict shall fo r all purposes of this Agreem ent be the s ole oblig ation of t he Dist r ict an d shall not in any wa y be deemed a debt or a lia bility of t he Special Co nn ecto r , Section 703, Abs ence of Repr esentations. No pa r t y her eto makes an y re pr esentati on co ncer ning t he use of prop erty, build ing permits re- quired or not requi r ed, zo ning r egulati on s of any bo dy corporate and poli - tic , or conce r ni ng t he exemption from l ice ns es , permits, or taxes . Section 704 . Conforma nce wi th Law s . Each part y hereto agrees to abide by and t o conform t o all applicab l e laws of the Fed e r al Gove r n- ment , th e State , and any ot her body corporate and po l itic having any j ur isdiction i n the pr emi se s. No th i ng in thi s sec ti on con tai ne d, howe ver , sh al l re quire any party hereto to co mpl y wi t h any l aw t he val id ity or applicabi l ity of which shal l be con t ested i n go od faith and , if neces~a ry or desirable , by appro pri at e l egal pro ceed i ngs, Section 705, Atts of God, No pa rty hereto sha l l be re s pons ible or lia ble i n an y wa y fo r Acts of God or any ot he r act or acts or omis s ion s be yond the cont r ol of such party wh i ch may in any wa y cause an interr up- t ion or a di scontinuance of se r vice appe r taining to t he Sewage Di s posal System or to any Sewer Sys t em, Sect i on 706. Nonass ·i gnabil i ty . No party to this Agree ment may ass ign any in t erest tr~rein t o any Perso n wi t hout the consent of the oth er party her eto at that t im e, and the te rm s of t his Ag r eeme nt shall inure to the benef it of and be bind i ng up on the r espe c tive rep re sent ati ves and successors of ea ch party her et o. Not hi ng herei n contain ed , however , sh a ll be co ns t ru ed as pr eve nting th~ reorganization of any party heret o nor as preventi ng an y other body co rp orate and politic succeeding t o the rights , pri vi le ges, powe rs, imm un ities , li ab ilities , di sab ili t i es, and dut ies of a party hereto, as may be a ut horiz ed by l aw , i n the ab sence of any prejudi - cia l impai rment of an y obligation of co ntrac t hereby im po sed , Sect i on 707. P;nendments. · Subject t o the ri ght s an d pri vil eges of the hol der or ho l de rs of any bonds or other se c ur ities of t he Di s trict, t his Ag r eement may be amen de d from ti me to time by written ag r ee me nt, duly a uthor i zed and sig ned by rep r esentatives of t lrn pa rt i es hereto. I f, at any t i me, the Service Cootract Is amend ed by the parties t he r eto, s uch an a111end111ent, if applicable, s 11 .l\l apply as Jn a,11e nd111u11t to th i s Agree ment , It be ing t he in t ent tha t if the Servi ce Contract i s amen de d in an y way whi ch co nf licts with this Ag r eeme nt, the amen dm ent to t he Ser vic e Con t ract shal 1 control and be .~nsidered as an amendment to t his Agreem ent, -34 - Secti on 7UU . Sovcrability. If any sect ion, subsection, para- grap h , c la use, phrase, or other provision of this Agreement shall for any reaso n be held t o be invalid or unen force able, the invalidity or unen- forceability of such sect io n, subsection, para ~raph, clause, phrase, or other provis i on shall not affec t any of the remaining provisions of thi s provis i on, Section 709. Waiv er. No wa i ver by either party of any term or cond ition of this Agreement shall be dee me d or const rue d as a waiver of any other term or condition , nor shall a waive r of any br each be dee med to constitute a waiver of any subsequent br each , whethe r of the same or of a different provis i on of this Agreeme nt , Section 710. Remedies, In addition to the remedies prov i ded by law, this Agr eem en t sha l l be specifically en forc eab le by the parties hereto, Section 711. Entirety . This Agreement merges and supersedes a 11 prio r ne got i at i an s , r ep r ese nt at i ans , and agr eements between the parties heret o re lati ng t o the sub ject matter he reof and cons titutes the en tire cont r act between the pa rti e s con ce rni ng th e disposal of se wage by th e Sper :al Connector and the acc ep tance of su ch sewage f or dis pos al by t r,e 0istr1ct . Section 712. Membership in the District . Nothing in th is Agree ment shal 1 be interpreted so as to gi ve or entitle the Special Con- nector to the status of a Connect i ng or Assoc i ate Mem ber as defined in the Service Contract, The Special Conne ctor acknowledges that it is not entitled to nor will it have repre se ntation on the Board of Directors of the Di st r ic t. ARTI CLE VIII SPECIAL PROVISIONS Se cti on 801. Service Area of Special Connector. Uµon exec ution · of t hi s Agreement , the Special Connect or shall furn i sh to the District, in a form agreeable to the District, a lega l description and a map of t he area served by the Special Connect or. Annuall y thereafte r, the Special Connector shall update s uch legal descript i on and a map. Se cti on 802. Exclusion of Territory. Shou l d the governing bod y of the Sp ecial Connect or determi ne that th e Spe ci al Connector or any por- tion of the service area thereof be exclude d from service by the Distri ct, I any reque s t for s uch exclusion shall be in accordance with the Act and in part ic ular Section 32-4 -515, C,R ,S, 19 73, as amende d, Section S03. User Charge System . The Specia l Con nect or shall have a user Charge System ba sed upon actual use of the Sewer System of the Special Connector as required by Ti tle 42, Part JS of the Cod e of Fe deral Regulations currently in effect and as fro m time to ti me amended, and in particu lar Section 35 ,929 thereof, or an ad valo r em t ax whi ch meets th e requ i remen t s of Section 35.929-1 of said Ti t le, -JS- I Section 804. Payment of E1ti1111ted Annual ChargH, For calendar year 1984, the District's total estimated annual charges to the Special Connector , City of Englewood, shall be $8,746, pay~ble as provided fn Sec- tion 604 and subject to f inal a <J justment as provided in Sections 60 5 through 609. The Special Connector hereby waives notice of public hearing on the District's 1984 ~udget as provided in Section 501 (Bl, Section 805. iewer Connection Charges. For new or altered sewer con11ectf ons made after January 1, 1984, the Metro 01 strict wfl 1 credit the Special Connector $500 per single family residential equivalent unit fer each connection for which Denver pays the Metro District $500 pe r sfngld family residential equivale nt. For each unit for which this credit fs app 11 ed, the Spec fa 1 Connector sha 11 pay to the Metro Dis trf ct the additional amount due to the Of strict based on the sewer connection charge in effect at the time of the physical connection to the sewer system serv ed by the Metro Distri c t . Section 806. Limita t ion on Service by the District. The Di s- tri c t shall provide sewage transm i ssion and treatment service only for tho se areas of the Special Connector, Cfty of Engl ewood, shown on the attached map and referred to in Exhfoft A. Since the sewage treatment facilities of the Special Connector i•l not serve these areas, that portion of Section 303 pertaining to service by the Spe c ial Connector outside its corporate boundaries and to enlargement of the Special Connector, to wi t : The Special Co nn ec t o r may only provide sewer se r v i ce out sid e its corpo r ate l imits or bound a r ies t o th e e xt ent it has t l1 e prior approval of the di s trict. Pr ior t o ann e xation o r e nl a r g i ng of it5 boun d ar i es by the Specia l Co nn ector , the Special Co n nector s ha l l obtain the appro v a l of the n ist r ict for s uch a nne xation o r enla rg e ment . The District , ,1,ro u gh its noard, may di sapprove such annexation o r en la r geme n t if i t determines tha t the Specia l Co nnector canno t feasib l y be se r v ed through th e Di strict 's facilities a nd al l o f Sec tions 3 04 a nd 305 do not app l y to this l\greemen t . Attest : Ga ry R. Higbee , ex officio Ci ty Clerk-Treasurer Attest : Secretary CIT Y OF' ENGLE WOOD Eu gene L. Otis , Mayo r Ml::'l"HOPOLI'l'AN DJ::N VJ::R SE\iAGE DIS POSA L DIS TRI C~ NO . l -36 - METROPOL !TAN DENVER SEWAGE DI SP OSAL DI STRICT NO. LIST OF INITIAL CONNECTING, METERING, AND SAMPLltlG POINTS Speci a 1 Connector City of Engle,1ood, Co lorado Location of Connection Points• Manholes on E. Yale Ave. at: I. All ey betw een s. Logan St, and S. Pennsylvania St. 2. S. Pear l St, 3. 60 fee t we st of S . Washington St. 4. 10 feet west of S. Clarkson St. 5. S. Emerson St. 6. S, Ogden St. 7. 250 feet woH of S. Do wning St. Individual Service Connection Points Serving addresses shown on Addendum B • ttached Method of Moa sure 111cnt** Estimatin g Estimati ng Estimating Estimating Estimating Estimating Esti ma tin g Estimating I •No ,h; og hm fo """ 1 "" , ha 11 " "" "'"" " p""" '1 og '"' o; se,; " '"' '"' Sp,I Connector from mutually agreeing upon the relocation of any co nnecting, metering, and sampling point appertaining her eto . •*The Oi s t ri ct may , at its discretion, change the method of measuremen t. I METRO POL IT AN OENVEII SEWAGE O I SP OSAL O I STRICT NO. 2120 West Baker Avenue 2155 West Baker Avenue 2167 West Baker Avenue 2200 West Baker Avenue 2396 West Baker Avenue 1997 West ll i ff Avenu e I\DOENDUM B cm OF ENGLEW OOD 2250 South Tejon Street -industrial 2315 South Tejon Street 1990 West Baltic Place 2200-2280 South Rar itan -in dustr ial 3095 South University -a church