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					                               COMMON COUNCIL CITY OF MUSKEGO
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                                    RESOLUTION #055-2004
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                      APPROVAL OF INTERMUNICIPAL AGREEMENT
               BETWEEN THE TOWN OF NORWAY SANITARY DISTRICT NO.1 AND
                               THE CITY OF MUSKEGO


        WHEREAS, The City of Muskego and the Town of Norway Sanitary District NO.1 will
        enter into an agreement; and

        WHEREAS, The Public Utilities Committee has reviewed the attached Agreement and
        has recommended approval.

        NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
        Muskego, upon the recommendation of the Publjc Utilities Committee, does hereby
        approve the attached Intermunicipal Agreement between the Town of Norway Sanitary
        District NO.1 and the City of Muskego.


        BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are hereby
        authorized to execute the agreement in the name of the City.



        DATED THIS      13TH      DAY OF     APRIL
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                                                         ,2004.


                                                         SPONSORED BY:

                                                         PUBLIC UTILITIES COMMITTEE
                                                         Ald. Eric Schroeder
                                                         Ald. Rick Petfalski
                                                         Ald. Patrick A. Patterson




        This is to certify that this is a true and accurate copy of Resolution #055-2004 which
        was adopted by the Common Council of the City of Muskego.




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            Intermunicipal Ag

              Between the Town of Norway
              Sanitary District No.1 and the City of Muskego




    -




                                               Hostak, HenzI & Bichler. S.C.
                                               840 lake Avenue Third Floor
                                                                  -




                                               Racine, WI 53403
                                               262-632-7541

                                               Dated: March 11, 2004



        -
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                        INTERMUNICIPAL AGREEMENT BETWEEN
                     THE TOWN OF NORWAY SANITARY DISTRICT NO.1
                             AND THE CITY OF MUSKEGO


            This Agreement, entered into as of the date executed by the last signing party hereto, by
    and between the Town of Norway Sanitary District No.1, hereinafter referred to as "District," a
    municipal corporation organized and existing under the laws of the State of Wisconsin, and the
    City of Muskego, hereinafter referred to as "City," a municipal corporation organized and
    existing under the laws of the State of Wisconsin.


           I.      DEFINITIONS

    1.1    Agreement. "Agreement" shall mean this document together with any and all Exhibits
           attached hereto.

    1.2    Average Daily Flow. "Average Daily Flow" shall mean the total volume of wastewater
           generated by the District over a period of 365 days divided by 365.

    1.3    BOD. "BOD" shall mean biochemical oxygen demand, as defined in the latest edition of
           Standard Methods for the Examination of Water and Wastewater.

    1.4    Commercial Users. "Commercial Users" shall mean any property occupied by a
           nonresidential establishment not within the definition of an "Industrial User," and which
-          is connected to the wastewater facilities.

    1.5    Contracting Municipalitv. "Contracting Municipality" means either the District or the
           City.

    1.6   Domestic Wastewater. "Domestic Wastewater," also referred to as "sewage," shall mean
          the water and water-carried wastes from residences, business buildings, institutions or
          industrial establishments generated by personal activities (from sources such as kitchens,
          bathrooms, lavatories, and toilets). Strength characteristics of this wastewater shall be
          deemed to be equal to those of the "residential equivalent connection" unless, in the case
          of a commercial user, strength characteristics are determined by the District to be
          different by the completion of a waste strength certification form. Domestic wastewater
          does not include process wastewater from industrial establishments, infiltration or inflow.

    1.7   Industrial Users. "Industrial Users" shall mean any non residential user identified in
          Division A, B, D, E, or I of the Standard Industrial Classification Manual. Industrial user
          also shall include any user that discharges wastewater containing toxic or poisonous
          substances as defined in Section 307 or 502 of the Clean Water Act, or any substance(s)
          causing interference in the wastewater facilities. Industrial user shall include any non
          residential user who: 1) is subject to national categorical pretreatment standards, 2) has a
          non-domestic flow of 25,000 gallons or more per average day, 3) contributes more than
          5% of the average dry weather capacity of the wastewater facility, or 4) is determined by
          the Facility Manager to have the potential to adversely affect the wastewater facility.

    1.8   Maintenance. "Maintenance" shall mean the preservation of the functional integrity and
-         efficiency of a wastewater treatment facility, including its equipment and structures. The
          term includes preventive maintenance, correctional maintenance and replacement of
          equipment.
    1.9   Maximum Monthly Flow. "Maximum Monthly Flow" shall mean the greatest volume of
          flow discharged to the facility over the course of any calendar month, during a single
                                                   1
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                calendar year, expressed in tenus of gallons per day.

         1.10   Operation. "Operation" 'shall mean control of the unit processes and equipment which
                make up a treatment works. The tenu includes financial and personnel management,
                records, laboratory control, process control, safety and emergency operation planning.

         1.11   Peak Daily Flow. "Peak Daily Flow" shall mean the greatest total volume of flow
                discharged to the facility during any consecutive 24-hour period.

         1.12   Peak Hour Flow. "Peak Hour Flow" shall mean the greatest volume of flow discharged to
                the Facility during any consecutive 60 minute period, and usually expressed in tenus of
                gallons per minute.

         1.13   P.  "P" shall mean phosphorous as defined in the latest edition of Standard Methods for
                the Examination of Water and Wastewater.

         1.14   Process Wastewater. "Process Wastewater" shall mean any wastewater, other than
                domestic wastewater and infiltration and inflow, discharged to the sewerage system.

         1.15   Replacement. "Replacement" shall mean obtaining and installing equipment, accessories
                or appurtenances which are necessary during the useful life of the treatment works to
                maintain the capacity and performance for which such works were designed and
                constructed.

         1.16   Residential Equivalent Connection. "Residential Equivalent Connection (REC)" shall
-               mean 300 gallons per day of average daily flow, including all infiltration and inflow
                resulting from such connection, at 200 mg/l BOD, 250 mg/l TSS, 40 mgll TKN and 8
                mgll P.

         1.17   Residential User. "Residential User" shall mean   a   premise used only for human residency
                and that is connected to the sewerage system.

         1.18   Sewer Service Area. "Sewer Service Area" shall mean that area defined in Section     II   and
                Exhibit A.

         1.19   TKN. "TKN" shall mean total Kjeldahl nitrogen     as defined in the latest edition of
                Standard Methods for the Examination of Water and Wastewater.

         1.20   TSS. "TSS" shall mean Total Suspended Solids as defined in the latest edition of
                Standard Methods for the Examination of Water and Wastewater.


                II.    SERVICE AREA

                The Sanitary District shall accept sewage from the City that emanates from the following
         area within the City:




,.....




                                                        2
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               Parcel A

               All that part of Town 5 North, Range 20 East, in the City of Muskego, Waukesha County,
               Wisconsin, described as follows:

               Beginning at the Southeast comer of the Southwest 'A of Section 32, T5N, R20E;
               thence Westerly on the South line of said Section 32 to the Southeast comer of
               Section 31, T5N, R20E; thence continue Westerly on the South line of said
               Section 31 to a point located 400 feet West of the centerline of Crowbar Drive;
               thence Northerly parallel with the centerline of said Crowbar Drive to a point
               located 450 feet North of the centerline of Kelsey Drive; thence Easterly on a line
               parallel with the centerline of Kelsey Drive to a point located 500 feet East of the
               centerline of Racine Avenue (C.T.H. "Y"); thence Southerly on a line parallel
               with the centerline of said Racine Avenue to the point of intersection with the
               North-South 'A section line of said Section 32; thence Southerly on the said
               North-South 'A section line of Section 32 to the point of beginning.

               Parcel B

               All that part of Town  5 North, Range 20 East, City      of Muskego, Waukesha County,
               Wisconsin, more fully described as follows:
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               Commencing at the South one-quarter of Section 34; thence South 88020'34"
               West, 1575 feet more or less along the South line of the Southwest one-quarter of
               said Section 34 to a point; thence Northeasterly 575 feet more or less to a point on
               the North-South eighth line of said Southwest one-quarter also being 510 feet
               more or less North of said South line; thence Northerly along said eighth line to
               the South line of STH "36"; thence Northeasterly along said South line of
               STH "36" and its extensions to the North-South eighth line of the Northeast one-
               quarter of said Section 34; thence Southerly along said North-South eighth line to
               the North line of the Southeast one-quarter of said Section 34; thence Southerly
           430 feet along the North-South eighth line of said Southeast one-quarter to a
           point; thence Southwesterly 2130 feet more or less to a point on the West line of
           said Southeast one-quarter; thence South 01 17' 35" East along said West line,
                                                             0



           593 feet more or less to the place of beginning.

            A map depicting the described City areas is attached hereto as Exhibit
                                                                                   A. The Sanitary
    District shall not serve any areas located outside of the above-described areas within the City,
    and nothing herein shall be construed as requiring the District to provide such extra-territorial
    servIce.




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                 III.    SERVICE TERMS

                 A.           LIMITATIONS ON QUANTITY AND QUALITY

                Sec.! Quantity. The Sanitary District shall not accept wastewater flows from the City
        into the District System that exceeds the following limitations:

                         Average Daily Flow:                            256,000               gallons   per day
                        Maximum Monthly Flow;                           384,000               gallons   per day
                        Peak Daily Flow                                 912,000               gallons   per day
                        Peak Hour Flow                                  845                   gallons   per minute

                The District may refuse any additional service connections which, in its opinion, will
        cause such limitations to be exceeded. In the event such limitations are exceeded, the City shall
        take steps to reduce the flows therefrom to the limitations allowed hereunder. Any flows in
        excess   of the limitations allowed hereunder shall be subject to     a       surcharge on such excess flows
        equal to two times the normal rates for such flows.


                 Both parties to the Agreement recognize that Lift Station #8's capacity is presently
         limited to approximately 900 gallons per minute, and that any flows to Lift Station #8 in excess
         of this amount may result in backups. Because Lift Station #8 handles flows from certain areas
         within the District as well as flows to the District originating from within the City, both parties
-        further recognize that as the City approaches its peak hour flow limitation of 845 gallons per
         minute, Lift Station #8 will require additional upgrade or replacement work. Both parties agree
        to pay their proportionate share of the cost of such reconstruction or upgrade, based on the
        percentage of flow through Lift Station #8 that, at that time, originates within the respective
        jurisdictions.

                Sec. 2 Quality. The Sanitary District shall not accept wastewater flows from the City
        into the District System that exceeds the following limitations:

                        Average Annual BOD                              259                   pounds per day
                        Maximum Month BOD                               337                   pounds per day
                        Peak Day BOD                                    674                   pounds per day
                        Average Annual TSS                              277                   pounds per day
                        Maximum Month TSS                               387                   pounds per day
                        Peak Day TSS                                    968                   pounds per day
                        Average Annual Ammonia Nitrogen                 35                    pounds per day
                        Maximum Month Ammonia Nitrogen                  59                    pounds per day
                        Peak Day Ammonia Nitrogen                       97                    pounds per day
                        Average Annual TKN                              57                    pounds per day
                        Maximum Month TKN                               87                    pounds per day
                        Peak Day TKN                                    161                   pounds per day
                        Average Annual Total Phosphorus                 6                     pounds per day
                        Maximum Month Total Phosphorus                  8                     pounds per day
                        Peak Day Total Phosphorus                       13                    pounds per day
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                 If such amounts   are exceeded, the City shall be subject to     a   surcharge for such excessive
        wastes, in accordance with District ordinances.


                                                           4
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                B.      RATES

                The City shall pay the District quarterly for its actual sewage treatment at a rate as
        established hereunder.   The District shall prepare an annual operation, maintenance, and
        replacement budget which shall serve as the basis for sewage treatment rates. The budget shall be
        composed of only those expenditures associated with the Facility; the City shall be charged a
        fixed rate for applicable collection system costs. The annual budget shall be divided by the
        estimated number of gallons to be treated during the budget year, and said quotient shall be
        multiplied by 1,000 so as to yield an estimated sewage treatment rate expressed in terms of
        dollars per thousands of gallons of sewage treated. This estimated rate shall thereafter be
        multiplied by the City's actual usage of the Facility in each quarter to determine the City's
        quarterly sewage treatment billings. The parties recognize that there are residential users
        presently connected directly to the District's collection system that discharge non-metered
        wastewater into the system. For purposes of calculating the City's actual usage, the parties agree
        that the flow from these non-metered residential connections shall be equal to one REC per
        residence. Such rate shall include a return on investment rate of seven and one-half percent
        (7.5%). The proportionate share charged to the City hereunder shall be equal to the proportion
        that the gallonage of sewage emanating from within the City and entering the District System
        bears to the total gallonage of sewage treated at the District sewerage treatment plan.


               The District shall bill the City quarterly, and all such quarterly charges shall be paid by the
        City within thirty days after the date of billing. Outstanding quarterly charges shall accrue
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        interest at the rate of one percent (1 %) per month as of the first day of each month said charge is
        late. The total amount paid by the City during the year shall be subject to adjustment following
        the completion of the budget year and the auditing of the District's actual costs and sewage
        flows. The next quarterly payment due following the calculation of the District's actual costs for
        the previous year shall be adjusted upward or downward to reflect any adjustment in the user
        charge for the previous year made necessary on account of the actual costs during the preceding
        year. An example of such annual user charge rate adjustment is attached hereto as Exhibit B. A
        copy of the annual calculation of costs shall be forwarded by the District to the City upon
        completion of the same. The cost of the annual calculation itself shall be a proper item to be
        added to the computation of the City's user charges hereunder. The City may, at its own
        expense, procure an independent audit of the District's annual calculation of costs and, if such
        audit shall disclose error in the District's calculations, such calculation shall be adjusted
        accordingly.


               c.      APPLICATION OF DISTRICT ORDINANCES

                The District's provision of sewage treatment services to the City shall be in accordance
        with all District ordinances, except to the extent any ordinance conflicts with this Agreement, in
        which case the provisions of this Agreement shall controL Each of the parties to this Agreement
        shall by ordinance, resolution or agreement with individual users require all users, including
        industrial or commercial users within its jurisdiction, to conform and comply with the provisions
        of such District ordinances together with such amendments to said ordinances which are made
    -
        during the term of this Agreement, and in order to comply with laws, orders, or directives of the
        United States Government or the State of Wisconsin. The term "sewage" shall include only
        flows amenable to treatment. Flows which are not amenable to treatment shall be pretreated or
        corrected at their source, so that they are amenable to treatment at the point of entry into the

                                                          5
    District System. Wastes from holding tanks or septic tanks, whether from within or without of
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    the area described in Exhibit A, shall not be deposited, emptied or allowed to enter into the
    City's system served by the District System.


              III.    CAPITAL COST SHARING

              A.      FUTURE COST SHARING

          The City agrees to pay the District its proportionate share of the cost of any construction or
    upgrade/refurbishment of any lift station or appurtenances thereto that are constructed to service
    the City or the City and the District. The proportionate share of cost shall be determined based
    upon anticipated use by the respective parties of the design capacity of such new or upgraded lift
    station or appurtenances thereto. In the absence of any method to accurately determine the
    parties' actual capacity usage, proportionate cost may be based on the parties' respective
    populations serviced by said lift station or appurtenances thereto.


              B.      REIMBURSEMENT FOR LIFT STATION #8

            The District recently upgraded Lift Station #8, the lift station receiving sewage primarily
    from the City, from a capacity of approximately 500 gallons per minute to a capacity of
    approximatel y 900 gallons per minute. Attached as Exhibit C, and incorporated herein by
    reference, is an itemization of the cost of such upgrade. The City hereby agrees to remit to the
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    District 65.5% of said amount, which percentage equals the approximate number of total
    residents served by such lift station who are residents of the City at the time of execution of this
    Agreement. Furthermore, when the demand on Lift Station #8 rises to the level that such lift
    station will again require reconstruction or upgrade, the City hereby agrees to pay its
    proportionate share of the cost of such reconstruction or upgrade, based on the percentage of
    flow through Lift Station #8 that, at that time, originates within the City.

              IV.    ADMINISTRATION OF AGREEMENT

              A.     OWNERSHIP

            The District and the City agree that nothing in this Agreement shall operate to impair or
    undermine the District's ownership of the Facility, nor is it the intention of either party hereto
    that the City shall acquire any ownership interest, either actual or equitable, in the Facility as a
    result of this Agreement. The right to manage the Facility remains fully and exclusively vested
    in the District, and nothing herein shall imply or in any way be construed so as to vest in the City
    any authority regarding, or responsibility for, management of the Facility.


              B.     DISPUTES

           Sec. 1 Discussion Before Dispute Resolution. At least thirty (30) days before initiating
    formal dispute resolution to enforce any of the terms of this Agreement, the party contemplating
-
    such dispute resolution shall so notify in writing the other party and request a meeting to discuss
    and resolve the matter in contention. Said meeting shall be held and concluded within 30 days of
    receipt   of said notice. Thereafter said party may initiate formal dispute resolution, subject to   a

    request for mediation made pursuant to subsection (b) below. Prior to initiating any dispute

                                                        6
            resolution involving operation and maintenance charges, all outstanding operation and
        -




            maintenance charges due and owing shall be satisfied. The party receiving such notification shall
            make itself available at reasonable times and places for such discussions and attempted
            resolution. The parties represent that they will each make a good faith effort to resolve any
            disputes that may arise between them.


                    Sec. 2 Mediation. In the event the parties are not able to reach agreement within 60 days
            after the initial meeting of the parties, any party may, by 60-day prior written notice to the others,
            require submission of such dispute to an impartial mediator, to be selected by the parties during
            such 60-day period, for non-binding mediation if the dispute is not resolved during such 60-day
            period. The mediator selected shall be the best qualified individual the parties can find to
            mediate their differences regarding how best to resolve the dispute. Within 30 days after the
            mediation notice, each party to the mediation shall notify the other parties in writing of its
            nomination of one disinterested potential mediator, together with appropriate background
            information regarding each. If the parties to the mediation are unable to agree upon a mediator,
            the mediator shall be selected by the flip(s) of a coin. The parties shall jointly retain the
            mediator. The fees and expenses of the selected mediator shall be paid by the District as an
            overhead cost. The parties may be represented by legal counsel in the mediation, but each party
            shall be responsible for its own attorneys' fees.


                    Sec. 3    Public Service Commission. The parties hereto agree to be bound by the
            provisions of Section 66.0821(5), Wisconsin Statutes, in the resolution of any dispute concerning
    -
            the interpretation of rates, rules and practices of the parties.


                   c.      PENALTIES AND REMEDIES

                  The City agrees that in the event the City discharges any wastewater to the District
            sewerage system that is injurious or detrimental to the sewerage system, the District may recover
            from the City the amount of any penalty levied by DNR, EP A, or other governmental entity
            against the District plus any actual costs or related expenses incurred by the District associated
            with the discharge.


                   D.      ACCOUNTING METHODS

                    To the extent any provision of this Agreement requires calculations involving accounting
            principles, those generally accepted accounting principles and practices utilized in maintenance
            of municipal and utility records, as determined by a certified public accounting firm shall be
            utilized.


                   E.      NOTICES

                   All notices required or permitted by this Agreement shall be deemed given if made in
            writing and deposited in the United States mail, addressed as follows:




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                                                             7
    -




                           Town of Norway Sanitary District No.1
                           Norway Town Hall
                           6419 Heg Park Road
                           Wind Lake, WI 53185

                           City of Muskego
                           City Hall
                           W182 S8200 Racine Ave. P. O. Box 749
                                                       -




                           Muskego, WI 53150-0749

               F.      W   AIVERIMODIFICATION

                The City may request, or the District may grant on its own initiative, a waiver of the
        enforcement of any requirement of the City, or a lessening of the penalty for any violation by the
        City, that is otherwise applicable under the terms of this Agreement. Any such request by the
        City shall be in writing, shall specify the provision from which relief is sought, shall specify the
        exact relief sought, and shall specify the reasons therefor. No waiver or modification shall be
        effective unless approved unanimously by the District Commission, and unless such unanimous
        approval is recorded in the official minutes of the Commission meeting at which such waiver or
        modification was granted. It is intended by the parties hereto that this Section may be used only
-       to allow relief from distinct, isolated, and fact-specific situations that would otherwise render
        strict enforcement of this Agreement unjust. It is further agreed by the parties that any grant of a
        waiver or modification under this Section does not imply, nor may be used as evidence of, any
        generalized waiver or modification of the District's rights hereunder, and also that any ongoing
        waiver or modification of the terms of this Agreement may be accomplished only as set forth in
        this Section.


               V.      MISCELLANEOUS

               A.      ENTIRE AGREEMENT
               This Agreement contains the entire agreement of the parties, and may not be modified
                   a modification is in writing, approved by the governing body of each
        unless such                                                                     party, and duly
        executed by each party's authorized representative.

               B.      PREVIOUS AGREEMENT

                To the extent the parties have previously agreed upon any matter which is the subject of
        this Agreement, this Agreement shall supersede all previous agreements between the parties as to
        that issue or issues.


               C.      EFFECTIVE DATE

              The effective date of this Agreement shall be the date upon which the last Contracting
--.     Municipality signs its version of the master Agreement.




                                                           8
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                D.          TERM OF CONTRACT
            This Agreement shall be in effect and in full force through December 31, 2019, unless the
     Agreement is terminated by mutual agreement. Specific tenns of this Agreement shall be
     renegotiated in the event of an occurrence beyond the control of the District, or caused by a
     governmental agency, and not covered by this Agreement.

                E.          EFFECT OF CONTRACT

            The City and the District recognize that this Agreement is the product of a unique set of
     circumstances. Accordingly, it is mutually acknowledged that many of the provisions contained
     herein are unique unto themselves and should not be seen as precedent for any future Agreement
     between the District and other entities.

             F.             SEVERABILITY

            If any clause, provision, or section of this Agreement be declared invalid by any Court of
     competent jurisdiction, the invalidity of such clause, provision or section shall not affect any of
     the remaining provisions of this Agreement.


             G.             BINDING AGREEMENT

             This Agreement is binding upon the parties hereto and their respective successors and
     assIgns.

-
             IN WITNESS WHEREOF,                 the parties hereto have caused this Agreement to be
     executed by their duly authorized officers.


                                      ;t1 wcÄ
     Dated this          JL day of              2004.       TOWN OF NORWAY SANITARY
                                                            DISTRICT NO.1
                                                                      ):
                                                                      ,   ~
                                                            By:       I   ;




     Dated this      -
                             day of             2004.       CITY OF MUSKEGO

                                                            By:
                                                                      Mayor
                                                            Attest:
                                                                      Clerk
     Approved as to fonn:




_.
     ~~~\,~
     Timothy J. mitt,
     Norway Sanitary District's Attorney


     Stanley Riffle, City's Attorney

                                                        9
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                                                 ORDINANCE NO. 32


                    AN ORDINANCE TO AMEND ORDINANCE NO. 28 RELATING
                                                                    TO
                          LIMITATIONS ON QUANTITY AND QUALITY OF
                        WASTEWATER AND RATES FOR CITY OF MUSKEGO


                                                                   the Town of Norway. Racine
                   The Cormnissioners of Sanitary District No.1 of
             County, Wisconsin, do ordain as follows:

                    WHEREAS, the Sanitary District has adopted Ordinance No. 28 establishing the
            areas of service, limitations on quantity and
                                                          quality of wastewater and rates for the
                                                                   the Sanitary District; and
            portions oftbe City of Muskego that are serviced by

                                                               adoptedbudget for 2004 and has trued up
                                                                         a
                    WHEREAS, the Sanitary District has
            the rate for 2003, which Tequin:d an adjustment in the rates for 2004;


                             1.   Section] Rates. The fates fOT the flows from the City of Muskego for
                                  the year 2004 shall be as follows: A charge ofS              per one
    -
                                  thousand galloDs   of wastewater entering into   the Sanitary District
                                  system (calculated in accord with Exhibit    A attached hereto and made

                                  a part herrof), subject to adjustment at the end of the year based upon
                                  actual costs during the year 2004 and subject to excess charges. if
                                  app1icable. The excess charge for gallonage in excess of the limits
                                  imposed under Section 2a shall be a charge equal to tWO times the
                                  normal charge for sucb gallonage under Section 3.


                             2.   This ordinance shall take effect upon adoption and posting as provided
                                  by law.

                    Adopted by the Commissioners of Sanitary District No.1 ofthc: Town of Norway
            this 11 th day
                         of March. 2004.

                                                                    SANITARY DISTRICf NO 1 OF
                                                                      THE TOWN OF NORWAY


                                                                   By:
                                                                             Norman L. Schultz, President

                                                                   Attest.
-


                                                                   By:
                                                                             David S. Koenîngs,

                                                  EXHIBIT                    Secretary-

                                            I         ß
                                            II
.....




          TOWN OF NORWAY
        SANITARY DISTRICT NO.1


         2003 Muskego User Charge




.....




  -..
                                                       Town of NOTWay
    -

                                                    Sanitary District No.1
                                                  2003 Muskego User Charge



             A. Allocation of Operating and Maiøtenance Expenses                Service Cost Functions             *
                                                                          1'0



                 Salary Expense                                                 SI71,547
                 FICA Expense                                                     13,027
                 Rerirernenr Expense                                              15,337
                 Insurance
                   Health and Life                                               34,5 10
                   Propaty and Casualty                                          22.814
                 AccO\U1ting and Legal Fees                                      53.137
                 Telephone
                   Plant                                                          3.107
                   Office                                                         2,150
                 Rent- Office                                                    14,300
                 Office Supplies                                                  3,822
                Norway Dover Drainage District                                  26,035
                Gas and Electric                                                63,260
                Truck Expense                                                    4.217
                Sludge Removal                                                  56,835
-               Chemicals                                                       13,116
                Opera ring Supplies                                              5,507
                Repairs and Maintenance                                         10,442
                Laboratory Expense                                               2.965
                Rental Equipment                                                 3,497
                Postage                                                         2,119
                Printing                                                           805
                Miscellaneous                                                   2,751
                DNR Expense                                                     5.199
                   Total                                                                                    S53Ç).499



                                                          Balance      AdditioDs                Balance      Current Year
                                                          01101/03    (Disposals)               12/31/03      Depreciation

        B. Depreciation of PJant Costs
            Structures- Old                           $     526,098       $                 $     526,098      $       20,104
                                                                                       --
               Auxiliary Equipment-Old                      137.461                               137.461
               New Plant                               5.997.934                                5.997.934        211.2 I 8
                                                      $6.661 493          s        -
                                                                                            ,Sfj.661.493       $ 237.322




--

         *
              Muskego is being charged 5%   of collection system costs.
                                              Town of Norway
    -
                                           Sanitary District No.1
                                         2003 Mnskego User Cbarge




                                               Balance    Additions           Balance         Average
                                               01101/03   (Disposals)         12/31/03        Balance


        C. Return on Iovestment
            Plant Costs-Old:
                                             $ 526,098     $              $    526,098    S     526,098
              Strucrures                                             --
                                                137,46)                        137.461          137,461
              Auxiliary Equipment
              Land Costs                        125,854                        125,854          125,854
            Plant Costs-New                   5,997,934                   5,997,934           5,997.934
                Total Costs                   6,787,347                   6,787,347           6.787,347
            Less: Average Accumulated
                    Depreciation              1.018.273        237.322        1.255,595       1.) 36,934

                Net Costs                                                                     5,650,413

            Net Return Computation
                                                                                          $    423.781
              (Net Cost x .075)

-


            Computation of Rate Per 1,000 Gallons
              Tota) Cost (A, n, C)      $ 1,191,602                                       $     4.7922
             Total Gallons Treated       248,656,900




-..
                                                       Town of Norway
                                                    Sanitary District No.1
-



                                                  2003 Muskego Use.. Charge



              2003 Quarterly Billings

                                                         Rate Per             Total Paid
                                        GalloDs        1,000 Gallons          Per Quarter
                    Quarter

                                                            3.30              $ 29,558.10
                        I SI         8,957.000
                        2nd         11,839,300              3.30                39,069.69
                        3Td         10,704,600              3.30                35.325.18
                        41h         11,641,600              3.30                38.417.28
                                                                              $142.370.25
                                    ~3. 142.500


              Actual Regular Usage Charge
                                                                               206.741.49
                       43,142,500 Gallons x 4.7922

                                                                                64,377.24
                 Balance Due 00 Regular Usage


                                                                                          .



              Overage Rate Usage
    -




              Actual Overage Usage Charge


                 Balance Due on Overage Usage
                                                                                      .




                                                                              $ 64.377.24
                       Total Balance Due




        ---
-



     Town of Norway Sanitary

                                   Lift Station #8 cost breakout



                        Hogan Electric Construction Contract
                                  Natural Gas Piping Modifications
                                  Painting
                                  Control Panel
                                  Cathodic Protection
                                  Motors & Pump Work
                                  Electrical Conduit & Wiring
                                 Valve Allowance                            103,845.64

                       Amount of Hogan Invoice qualifing as Repairs only     (7,497.93)

                                                                             96,347.71
                       Plus Engineering Costs                                16,790.56

                                 T alai Cost for Lift Station #8 Upgrades   113,138.27



-




_.
                                           ,                         ..
                                                   EXHIBIT
                                               I     C
                 HEI Invoice #2646
    /!.                                              APPLICATION FOR PAYMENT NO.                      6

                 Town of Norway Sanitary Dlstricl #1                                                                                     (C  lEI
   From:            Hogen Electric, Inc
                                                                                                                                    (CONTRACTOI
   Contract:
   Project:             Norway lift Station No.8 Upgrade
   OWNER's Contract No.                                                                        ENGINEER's Project No.               N/A
   For Work accomplished through the dare at:                   May 31,2003
             1     Original Contract Price                                                                          $
                                                                                                                                          10S,117.0C
             2     Net change by Change Orders Bnd Written Amendments          (-I-   or -):                        $
                                                                                                                                           (1.271.36
         3         Current Contract Price (1 plus 2):                                                               $
                                                                                                                                       103.845.64
         4         Total completed and stored to date:                                                              $
                                                                                                                                       103,845.64
         5         Retainage (per Agreement):
                          10% of first 50% of completed Work:                         $
                                                                                                  5,192.28
                                           % of stored material:                      $
                                             Total Ratainage:                                                   $
                                                                                                                                           5,192.28
         6        Total completed and stored to date less retainage (4 minus 5):                                ~                      98,653.36
         7        Less previous Application for Payments:                                                       $
                                                                                                                                       95.861.15
         8        DUE THIS APPLICATION (6 MINUS 7):                                                             $                       2.792.21
  Accompanying Documentation:

 CONTRACTOR'S Certification:
 The undersigned CONTRACTOR certifies that: (1) all previous progress payments received from OWNER on account of
 Work done under the contract referred to above have been applied on account to discharge CONTRACTOR'S legitimate
  -- ltions(2)
   ...sive;
            incurred        in connecrion with   Work covered by prior Applications for Payment numbered
                title ro all Work, materiars and equipment incorporated in said Work or otherwise listed in
                                                                                                                    1
                                                                                                                        through-L
                                                                                                            or covered by this
 Application for Payment will pass to OWNER at time of payment free and clear of all liens, security interests and
 encumbrances (except such as are covered by Bond acceptabJe to OWNER indemnifying OWNER against any such lien.
 security interest or encumbrance); and (3) all Work covered by this Application for Payment is in accordance with
                                                                                                                   the
 Contract Documents and not defective.

 Dated                   5/30                ,2002                                                  Hogen Electric. Inc.
                                                                                                      CONTRACTOR



State of Wisconsin
County of Washington
                                                                                  By
                                                                                               7~~;R~~.
Subscribed and swom to before me this
                                                        ?n~
day of
        -f!1o. 'I                        '
                                             2~3
  '-Kt~ \(rlJ&i~~{f
Notary Public
My Commission expires: {)j~h I amG   (       I

Payment of the above AMOUNT DUE THIS APPLICA nON                   is   recommended.

                                                                                                          ,

Qated
  -
                  6 /;;;t
                    I      .I
                                k2       .2002                                fltpbt:d 1écA/lo0í~
                                                                                                /1/(;.
                                                                                                              '(ENGINEER)


                                                                                          By