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12-R-50 Agreement with Cibolo Creek Municipal Authority CCMARESOLUTION NO. 12-R-50 THAT: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN INTERLOCAL AGREEMENT WITH CIBOLO CREEK MUNICIPAL AUTHORITY TO OPERATE THE SEDONA WASTEWATER TREATMENT PLANT, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the City enter into an interlocal agreement with Cibolo Creek Municipal Authority (CCMA) to operate the Sedona Wastewater Treatment Plant; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with CCMA pursuant to the Cibolo Creek Municipal Authority Interlocal Agreement attached hereto as Exhibit A (the "Interlocal Agreement"). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Interlocal Agreement with CCMA in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, thiday of ~I~CpJI J , 2012. CITY-~'-`S~C`HERTZ, TEXAS ATTEST: C] y , ecretary (CITY SEAL) Mayor Pro= 50506221.1 - 2 CIBOLO CREEK MUNICII'AL AUTHORTTY INTERLOCAL AGREEMENT This CIBOLO CREEK MUNICIPAL AUTHORITY INTERLOCAL AGREEMENT (the "Agreement") is entered into to be effective as of the Effective Date (as hereinafter defined), by and between the Cibolo Creek Municipal Authority, a conservation and reclamation district created and operating pursuant to Article XVI, § 59 of the Texas Constitution (the "Authority"), and the City of Scheitz, Texas, ahome-rule municipality operating pursuant to the Constitution and laws of the State of Texas (the "City"). The Authority and the City axe collectively referred to herein as the "Parties." RECITALS WHEREAS, the City has been issued TPDES Permit No. WQ0014667001 ("TPDES Permit") from the Texas Commission on Environmental Quality ("TCEQ") to discharge treated effluent from the Sedona Wastewater Treatment Plant ("WWTP") into Womans Hollow Creek (also known as Woman Hollering Creek), thence to Martinez Creek, thence to Lower Cibolo Creek in order to provide wastewater service for the City; and WHEREAS, the City owns the W WTP; and WHEREAS, the City has requested that the Authority assume operational responsibility for the WWTP; and WHEREAS, the Authority is a regional agency that owns and operates wastewater treatment facilities; and WHEREAS, on February 15, 1985, the Authority and the City entered into a "Contract for Sewerage Service" pursuant to which the Authority provides wastewater collection, treatment, and disposal services to the City; and WHEREAS, the Authority has the capability and expertise to operate the W WTP; and WHEREAS, the Authority and the City, exercising their respective mutual authorities, wish to enter into this Agreement to set forth the specific terms and conditions pursuant to which the Authority shall operate the W WTP and be a co-permittee on the TPDES Permit; and WHEREAS, pursuant to Chapter 791, Texas Government Code, and the general and special laws of the State of Texas, the Parties are authorized to enter into this Agreement; and WHEREAS, this Agreement shall have no effect or implication on the Contract for Sewerage Service and such contract shall remain in force and effect without regard to the effectiveness or termination of this Agreement. 1937294.7 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the sufficiency of which are hereby conclusively acknowledged, and subject to the terms and conditions hereinafter set forth, the Authority and the City mutually undertake, promise, and agree as follows: ARTICLE I The following terms and expressions as hereinafter used in this Agreement, unless the context clearly shows otherwise, shall have the following meanings: Section 1.0 Additional Contract Services. Those services provided to the City by the Authority that are not Base Contract Services. Section 1.1 Annual Ooeratine Budget. The budget that is necessary for the Authority to operate and maintain the W WTP pursuant to Section 4.0 of this Agreement. Section 1.2 Authority. The Cibolo Creek Municipal Authority. Section 1.3 Base Contract Services. All services provided to the City by the Authority pursuant to Article II of this Agreement. Section 1.4 Citv. The City of Schertz, Texas. Section 1.5 Collection System. The City's pipelines, lift stations, and other infrastructure necessary to transport raw sewage from the City to the Point of Delivery. Section 1.6 Effective Date. The date on which the last pasty signs this Agreement. Section 1.7 EPA. The Environmental Protection Agency, or its successor agency. Section 1.8 Fiscal Year. October 1 -September 30. Section 1.9 Industrial Pretreatment Pro ram. The City ordinances for reducing and preventing the introduction of pollutants into the W WTP as provided in Chapter 90, Article III of the City of Schertz Code of Ordinances. Section 1.10 Order. That certain TCEQ Agreed Order approved at the February 22, 2012 TCEQ Commissioners' Agenda, Docket No. 201 I-0847-MWD-E. Section 1.11 Point of Deliverv. The location where raw wastewater influent from the Collection System is transferred to the W WTP for treatment. Section 1.12 TCEQ. The Texas Commission on Environmental Quality, or its successor agency. !937294.7 2 Section 1.13 TPDES Permit. The Texas Pollutant Discharge Elimination System Permit No. W00014667001, as issued by TCEQ to the City for the WWTP and included as Exhibit A, attached hereto and incorporated herein. Section 1.14 WWTP. The Sedona Wastewater Treatment Plant and any additions, improvements or expansions, owned by the City. ARTICLE II AUTHORITY OBLIGATIONS Section 2.0 WWTP Operations. The Authority agrees to assum responsibility for the continuous operation and management of the WWTP commencing on The Authority's operational responsibility extends only to influent at the Point o Delivery and within the WWTP. The Authority shall not be responsible for influent within the City's Collection System and before the Point of Delivery. The Authority will furnish all labor, materials, vehicles, equipment, and consumables required for proper operation of the WWTP, in a manner that complies with the Agreement and all laws, rules, regulations, permits, policies, codes and industry standards. All work required or performed by the Authority under this Agreement will meet the standard expected of a prudent operator of a wastewater system in Texas and any standard or requirement specified in this Agreement. Section 2.1. Permit. Within fourteen (14) days of the Effective Date, the Authority will file any necessary application forms with the TCEQ to acknowledge co-permittee status for the WWTP. The Authority will operate the WWTP in compliance with applicable federal, state and local laws and regulations and permit requirements, including the TPDES Permit. Compliance with the TPDES Permit includes all effluent quality monitoring, testing and reporting requirements. The Authority will also assist the City or respond directly to any requests from TCEQ or EPA or other regulatory agency for any additional information, records or WWTP data. The City and the Authority shall be responsible for obtaining any renewal or amendment to the City's TPDES Permit as co-permittees. Section 2.2. Chemicals. The Authority will purchase and maintain an inventory of chemicals used or required to efficiently operate and maintain the WWTP. It shall be the City's responsibility to cancel or honor any existing contract(s) with chemical suppliers. Section 2.3. Customer Complaints/Public Relations. The Authority will function as the first responder to all complaints pertaining to the WWTP. The Authority will promptly notify the City of any such complaints. Section 2.4. Laboratory Testing. The Authority will perform monitoring, sampling, testing, laboratory analyses and coordination of tests done by an outside certified laboratory (as needed), and reporting for influent and effluent parameters as necessary for process control and to ensure compliance with all applicable permits, regulations, and laws. Sampling and analysis will be performed in compliance with TPDES Permit-specified methods and standards. The Authority will also conduct all process control monitoring and testing as recommended by the TCEQ to 1937294.7 ensure efficient operation. It shall be the City's responsibility to cancel or honor any existing contract(s) with outside laboratories. Section 2.5. Staffing. The Authority will utilize staff that possess and maintain the appropriate levels of certification required by the TCEQ, the State of Texas, and any applicable regulations and laws while the Authority operates the W WTP. Section 2.6. Pretreatment. The Authority will be responsible for all sampling and compliance with the City's Industrial Pretreatment Program for the W WTP, but it shall not be responsible for any action required by the City in Section 3.3 herein. Section 2.7. Sludge Disposal. The Authority will remove and dispose of all biosolids from the WWTP, as needed, to ensure permit compliance. The Authority will provide for the collection, hauling, annual testing, and disposal of biosolids, including but not limited to screenings, grit, sludge and scum to existing and approved disposal sites. Section 2.8 Maintenance. The Authority will provide a sufficient number of qualified personnel to perform routine and preventive maintenance for the WWTP. The Authority will provide all labor, tools, material, and equipment required to perform plant maintenance. Section 2.9. Equipment Maintenance. The Authority will perform routine maintenance on all equipment as recommended by, and in accordance with, the manufacturer. Such maintenance will be conducted in conformance with the equipment manufacturer's requirements which shall be provided to the Authority by the City, if the City has such manufacturer's requirements. For any equipment installed or purchased during the term of this Agreement, the Authority will obtain and retain the manuals and equipment manufacturers' requirements for maintenance. The Authority will keep a detailed log of all maintenance activities. In addition, maintenance will include but not be limited to cleaning and painting of equipment, piping, valves and process unit structures. Section 2.10. Wan~anty Maintenance. The Authority will perform maintenance required to maintain equipment warranties, which will be provided to the Authority by the City for all equipment not purchased by the Authority. The Authority will be responsible for maintaining all manufacturers' warranties on new equipment purchased by the City as part of repairs or capital improvements during the term of this Agreement. The Authority will provide all available data and documents to assist the City in enforcing existing equipment warranties and guarantees. Section 2.11. Building and Facility Maintenance. The Authority will provide routine maintenance and housekeeping functions for the WWTP buildings and site facilities, including but not limited to janitorial services, plumbing and electrical maintenance, building consumables, and upkeep of building interiors and exteriors. Section 2.12. Security and Visitors. The Authority will maintain security at the WWTP. All visitors not associated with routine operations and maintenance of the WWTP will require prior written approval from the City for admittance. The City will provide the Authority with a list of City employees permitted to visit the WWTP. 1937294.7 4 Section 2.13. Repairs. The Authority will promptly make any necessary repairs it discovers during operations, inspections or other activities. Repairs will be specific to individual pieces of equipment. Where the Authority determines that the condition at the WWTP constitutes an emergency, the Authority will promptly initiate action to perform such repairs. Section 2.14. TCEQ Compliance Re op Ming. Upon confirmation of authority by the TCEQ, the Authority will prepare and timely submit all required monthly compliance reports to the TCEQ. The Authority will also prepare and timely submit any other operational or compliance report required by the TCEQ, EPA, or any other local, state or federal agency relating to the operation of the WWTP. Copies of TCEQ compliance reports shall be made available to the City upon request. Section 2.15. Reports to the Citk Upon request, the Authority shall make available to the City documents pertaining to plant operations, regulatory reports and correspondence and budget expenditures, Section 2.16 Insurance. The Authority agrees that it shall carry and arrange for fire, casualty, public liability, and/or other insurance, including self-insurance for purposes and in amounts which, as reasonably determined by the Authority, ordinarily would be carried by a privately- owned utility company owning and operating such facilities, except that the Authority shall not be required to provide liability insurance except to insure itself against risk of loss due to claims for which it can, in the opinion of the Authority's legal counsel, be liable under the Texas Tort Claims Act or any similar law or judicial decision. Such insurance will provide, to the extent feasible and practical, for the restoration of damaged or destroyed properties and equipment, to minimize the interruption of the services of such facilities. All premiums for such insurance shall constitute a just and reasonable operation and maintenance expense. Section 2.17 Subcontractors. Subcontractors to be used by the Authority will meet the insurance requirements outlined in Section 2.16. The Authority will provide supervision of all subcontractors and ensure that the subcontractor complies with all the requirements of this Agreement in performing any work. Section 2.18 Order. The Authority shall have the right to negotiate any extension(s) and/or compliance matters with the TCEQ regarding the Order but shall not be responsible for any additional fines or remedial actions regarding the Order. The Authority shall undertake such negotiations in consultation with the City. ARTICLE III CITY OBLIGATIONS Section 3.0 City Land and Facilities. All land, buildings, improvements and equipment associated with the W WTP and which are presently in place will remain the property of the City. The City will make such land and facilities available to the Authority for the purpose of providing the requested services and hereby grants the Authority a license to access such land and facilities. 1937294.7 Section 3.1 Maintenance of Collection System. The City shall be responsible for the Collection System and all activities and influent prior to the Point of Delivery. Section 3.2 Financine. It shall be the City's responsibility to provide the operating funds and capital expenditures as are necessary to accomplish the quality of discharge stipulated in the TPDES Permit issued by the TCEQ. The City shall charge its customers a sufficient rate for wastewater services so as to meet the Annual Operating Budget specified in Section 4.0 below. Section 3.3 Pretreatment. The City shall be responsible for• ensuring that the influent entering the WWTP complies with the City's pretreatment ordinance. The City agrees to enforce its pretreatment ordinance and to take such action as is necessary to control the strength of raw industrial sewage reaching the WWTP in order that the quality of discharge required in the TPDES Permit may be maintained by use of facilities of the WWTP existing on the Effective Date or as may be added to the W WTP by the City during the term of this Agreement. Section 3.4 Insurance. The City shall maintain fire and extended coverage insurance, including self-insurance, on the WWTP adequate to replace the WWTP, if necessary. Section 3.5 Reeulatorv Compliance. The City will assist and cooperate with the Authority in good faith at all times to ensure compliance with applicable federal, state and local regulations and permit requirements, including the TPDES Permit. Compliance with the TPDES Permit includes all effluent quality monitoring, testing and reporting requirements. The City will also assist the Authority or respond directly to any requests from TCEQ or EPA or other regulatory agency for any additional information, records or• W WTP data. ARTICLE IV FEES Section 4.0 Annual O erating Budget. The Authority shall prepare an annual operating budget for Base Contract Services reflecting all anticipated costs in connection with the operation of the WWTP in sufficient detail to justify expenditures for salaries, materials, supplies and contractual services. The amount of the proposed operating budget for the upcoming Fiscal Year shall be submitted to the City on or before May 1 prior to that upcoming Fiscal Year. The proposed budget, on adoption by the Authority and the City, shall be considered the "Annual Operating Budget" for the ensuing Fiscal Year. In the event the City and the Authority are unable to agree on the operating budget prior to October 1, the budget for the previous Fiscal Year shall apply for the first sixty (60) days of the new Fiscal Year, with adjustments only to those items that are agreed to by the City. If, at the end of this sixty (60)-day period, no agreement has been reached on the operating budget, this Agreement shall be terminated in accordance with the termination provision herein provided. The operating budget for the first partial Fiscal Year of this Agreement, which shall be the period from the Effective Date through September 30, 2012, is set forth on Exhibit B, attached hereto and incorporated herein. On the first October 1 during which this Agreement is effective, a new budget will be implemented for the first full Fiscal Year. 1937294.7 6 Section 4.1 Monthly Payments. Monthly payments will be made by the City to the Authority in an amount equal to the total Annual Operating Budget divided by twelve (12), and these payments shall be made in advance, on or before the tenth (10th) day of each month. The first monthly payment for a Fiscal Year is due October 10 of each year and shall be twice the calculated monthly payment with no payment due in September of each Fiscal Year, except for any adjustments previously approved by the City. At the end of each Fiscal Year, any difference between the Annual Operating Budget and the actual cost shall be credited or debited to the City's next Fiscal Year Annual Operating Budget. The Authority will bill the City by the first (1st) of each month For the necessary monthly payment based on the Annual Operating Budget. In the event the City fails to make any monthly payment by the twentieth (20th) day of the month in which due, the Authority, after notice to the City, may terminate its obligation to operate the W WTP as of the Srst (1 st) day of the following month. Interest will accrue at the prime rate of interest per annum, as published in the Wall Street Journal on the date of invoice, on the amount of any undisputed bill not paid by the City within twenty (20) days of receipt. Section 4.2 Expenditures for Additional Contract Services. Expenditures for Additional Contract Services not included in the Annual Operating Budget may be incurred with the concurrence of the Authority's General Manager. Expenditures which in the aggregate total in excess of $10,000 require approval by the City's authorized representative, and will be invoiced as appropriate adjustments in monthly payments. Section 4.3 The Authority's Financial Obli ag tion. Nothing in this Agreement shall be construed as requiring the Authority to expend funds fiom any source other than the revenues received from the City hereunder. All costs related to the WWTP and required by valid rules, regulations, law or order passed or promulgated by the United States of America, the State of Texas, and any regulatory and judicial branch thereof having lawful jurisdiction shall be the responsibility of the City. Section 4.4 Audit. The City has the right, at its cost, to inspect or audit the Authority's books and records applicable to this Agreement for any Fiscal Year or any portion thereof to determine whether the Authority has complied with this Agreement and for other lawful purposes. ARTICLE V GENERAL PROVISIONS Section 5.0 INDEMNIFICATION BY CITY. IN ADDITION TO THE OTHER REMEDIES AFFORDED TO THE AUTHORITY IN THIS AGREEMENT, AND ONLY TO THE EXTENT PERMITTED BY LAW, CITY SHALL RELEASE, INDEMNIFY, DEFEND AND HOLD HARMLESS THE AUTHORITY, ITS OFFICERS, DIRECTORS, EMPLOYEES, CONTRACTORS AND AGENTS (THE "INDEMNIFIED PARTIES") FOR, FROM AND AGAINST ANY AND ALL LOSS, COST, EXPENSE, CLAIM, ACTION, PROCEEDING BEFORE ANY GOVERNMENTAL AUTHORITY OR ARBITRAL TRIBUNAL, DEMAND, DAMAGE, FINE, LIABILITY, OBLIGATION OR PENALTY, LIEN, CAUSE OF ACTION, SUIT AND EXPENSE (INCLUDING, WITHOUT LIMITATION, COURT COSTS, REASONABLE ATTORNEYS' FEES AND COSTS OF INVESTIGATION, REMOVAL AND 1937294.7 REMEDIATION, AND GOVERNMENTAL OVERSIGHT COSTS), ENVIRONMENTAL OR OTHERWISE OF ANY NATURE, KIND OR DESCRIPTION OF ANY PERSON OR ENTITY DIRECTLY OR INDIRECTLY ARISING OUT OF, RESULTING FROM, OR RELATED TO (IN WHOLE OR IN PART) 1) THE CITY'S PERFORMANCE OR OMISSION OF ITS OBLIGATIONS PURSUANT TO THIS AGREEMENT, AND 2) THE AUTHORITY'S PERFORMANCE OF ITS OBLIGATIONS PURSUANT TO THIS AGREEMENT, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY ONE OR MORE OF THE INDEMNIFIED PARTIES. Section 5.1. Defense of Third Pairtv Claims. In the event any action or proceeding shall be brought against an Indemnified Party by reason of any matter for which an Indemnified Party is indemnified hereunder, the City shall, to the extent permitted by law, upon notice fiom the Authority or its authorized agents or representatives, at the City's sole cost and expense, defend the same with legal counsel selected by the City and approved by the Authority; provided, however, that the City shall neither admit liability in any such matter on behalf of the Indemnified Party nor enter into any compromise or settlement of, any claim for which an Indemnified Party is indemnified hereunder, without the prior written consent of the Authority, which consent shall not be unreasonably withheld. The City's obligation to defend shall apply regardless of whether the Authority is solely or concurrently negligent. Nothing herein shall be deemed to prevent the Authority at its election and at its own expense from cooperating with the City and participating in the defense of any litigation by its own counsel If the City fails to select defense counsel and notify the Authority of the selection within fifteen (IS) business days after receipt of the Authority's written notice that an Indemnified Party is invoking its right to indemnification under this Agreement, the Indemnified Party shall have the right to retain defense counsel on their own behalf, and the City shall be liable for all defense costs reasonably and necessarily incurred by the Indemnified Party. Section. 5.2 Limitation on Liabilitv. The Authority shall not be held liable for any and all TPDES Permit violations incurred by the City and related to the WWTP before the Effective Date of this Agreement. The City accepts full responsibility for such violations and agrees, to the extent permitted by law, to indemnify and hold harmless the Authority for such violations to the extent permitted by law. Section 5.3 Term. This Agreement shall commence as of the Effective Date and shall continue in force and effect until such time the Agreement is terminated in accordance with Section 5.4 or Section 4.1. Section 5.4 Termination. Either the City or the Authority may require that this Agreement be terminated. The party desiring to terminate this Agreement shall submit notice in writing to the other party, after which a period of thirty (30) days shall be allowed before termination becomes final. Within fourteen (14) days of the termination of this Agreement by either party, the City and the Authority shall jointly file an application with TCEQ to remove the Authority as co- permittee of the TPDES Permit. Once the Agreement is terminated, upon the request of the City, the Authority will continue its operating responsibility for a period of forty-five (45) days with payments for service in accordance with this Agreement. 1937294.7 8 Section 5.5 Amendment and Modification. This Agreement shall not be amended except in writing by both Palsies hereto. No change, amendment, or modification of this Agreement shall be made or be effective which will affect adversely the prompt payment when due of all money required to be paid by the City under the terms of this Agreement. Section 5.6 Title to Effluent and Reuse. Except as provided otherwise herein and to the extent allowed by law, title to all wastewater shall be in the City until discharged from the WWTP, at which point title to effluent shall pass to the Authority. The Authority reserves the right to indirectly reuse treated effluent associated with the WWTP to the extent authorized by the State of Texas. Provided, however, to the extent allowed by law, the City shall have and retain the right to reuse treated effluent, considered "reclaimed water," in accordance with the provisions of 30 Tex. Admin. Code Chapter 210, including all other regulatory requirements, prior to discharge from the WWTP. To the extent the Ciry does produce or provide reclaimed watet• to a user, prior to discharge from the WWTP, the City warrants and represents that it will do so in accordance with the TPDES Permit and all provisions of 30 Tex. Admin. Code Chapter 210. Section 5.7 Independent Contractor. The Authority is not an employee of the City, but serves the City as an independent conU•actor. This Agreement in no way constitutes a joint venture between the City and the Authority. Section 5.8 Additional Connections. The Authority may provide wastewater service from the WWTP to other entities subject to prior written approval by the City. Section 5.9 Addresses and Notice. Unless otherwise provided herein, any notice, communication, request, reply, or advice (herein severally and collectively, for convenience, called "Notice") herein provided or permitted to be given, made, or accepted by any party to the other party must be in writing and may be given or be served by depositing the same in the United States mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, or by hand delivering the same to such party, addressed to the pasty to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated herein, from and after the expiration of three business days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the palsy to be notified. For the purposes of notice, the addresses of the Parties shall, until changed as hereinafter provided, be as follows: If to the Authority: By Mail: General Manager Cibolo Creek Municipal Authority P. O. Box 930 Schertz, Texas 78154 By Delivery: Cibolo Creek Municipal Authority 100 Dietz Road Schertz, Texas 78154 1937294.7 ~ If to the City: City of Schertz 1400 Schertz Parkway Schelsz, Texas 78154 Attn: City Manager With a copy to: Fulbright & Jaworski, L.L.P. 300 Convent Street, Suite 2100 San Antonio, Texas 78205 Attn: Katherine A. Tapley The Authority and the City shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify as its address any other address by at least fifteen (15) days' written notice to the other party. Section 5.10 Severability. The Palsies hereto specifically agree that in case any one or more of the sections, subsections, provisions, clauses, or words of this Agreement or the application of such sections, subsections, provisions, clauses, or words to any situation or circumstance should be, or should be held to be, for any reason, invalid or unconstitutional, under the laws or constitutions of the State or the United States of America, or in contravention of any such laws or constitutions, such invalidity, unconstitutionality, or contravention shall not affect any other sections, subsections, provisions, clauses, or words of this Agreement or the application of such sections, subsections, provisions, clauses, or words to any other situation or circumstance, and it is intended that this Agreement shall be severable and shall be construed and applied as if any such invalid or unconstitutional section, subsection, provision, clause, or word had not been included herein, and the rights and obligations of the Palsies hereto shall be construed and remain in force accordingly. Section 5.11 Force Majeure. Notwithstanding anything herein to the contrary, the Pasties hereto shall not be under any liability or be deemed to be in default with respect to their obligations under this Agreement for any failure to perform or for delay in performing such obligations hereunder (except for the obligation to pay money) where such failure or delay is due to force majeure, while and to the extent that such performance is prevented by such cause. The term force majeure means acts of God, fire, storm, flood, war, terrorist activity, riots, sabotage, strikes ot• other differences with labor (whether or not within the power of the Parties to settle same), decrees or orders of the courts or other governmental authority, or other similar or dissimilar causes not within the reasonable control of such party and not due to negligence of such party. The Palsies shall use due diligence to resume performance of any obligation suspended by force majeure at the earliest practicable time. 1937294.7 1 p Section 5.12 Governing Law• This Agreement shall be governed by the Constitution and laws of the State of Texas, except as to matters exclusively controlled by the Constitution and statutes of the United States of America. Section 5.13 Venue. All amounts due under this Agreement, including, but not limited to, payments due under this Agreement or damages for the breach of this Agreement, shall be due in Guadalupe County, Texas, which is the County in which the principal administrative offices of the Authority and the City are located and the County where this Agreement is performable. In the event that auy legal proceeding is brought to enforce this Agreement or any provision hereof, the same shall be brought in the State District Court of Guadalupe County, Texas. The Parties agree to submit to thejurisdiction ofsaid court. Section 5.14 Succession and Assignment, This Agreement is binding upon and shall inure to the benefit of the Parties, their heirs, successors and assigns. This Agreement may not be assigned by any pasty hereto without prior written notice to, and prior written approval by, the other pasty, which consent may be withheld without cause. Section 5.15 Incorporation of Exhibits and Preamble Recitals. The recitals contained in the preamble hereof and the exhibits hereto are hereby found to be true, and such recitals are hereby made a part of this Agreement for all purposes. Section 5.16 Entire Agreement. This Agreement constitutes the entire agreement between and among the Parties with respect to the matters described herein. No oral understandings, promises, or inducements contrary to the terms of this Agreement exist. No verbal agreement or conversation with any officer, agent, or employee of a party, either before or after the Effective Date of this Agreement, shall affect or modify any terms of this Agreement. Section 5.17 Failure to Perform. This Agreement does not, and shall not be interpreted to, preclude the City from being able to perform, or cause to be performed, any of the obligations of the Authority under this Agreement in the event that the Authority fails to perform such obligations. Section 5.18 Headines. All descriptive headings and captions herein are inserted for convenience only and shall not be considered in construing or interpreting this Agreement. Section 5.19 Counterparts. This Agreement may be executed in counterparts, each of which shall be an original and all of which together shall constitute but one and the same instrument. Section 5.20 Authority to Execute. Each person signing on behalf of the Parties hereby confirms that they have the authority to execute this Agreement on behalf of the party indicated by their signature. 1937294.7 IN WITNESS WHEREOF, this instrument is executed on the dates set forth below the Pa1•ties' signatures to be effective the date the last party so signs (the "Effective Date"). CIBOLO CREEK MiJ CIPAL AUTHORITY By: ~lin~t Ellis, General anager Date: (D/ ~~/ CITY OF SCHERTZ, TEXAS By: John C. Kes el, City Manager Date: ~ ~ ~~ 1937294.7 IZ THE STATE OF TEXAS COUNTY OF aC~[t ~ This instrument was acknowledged before me on the ~ day of ~,1(,~, 2012, by Clint Ellis, General Manager of Cibolo Creek Municipal Authority, on behalf of said Authority. ~~~ ~~ h Notary Public Signature (Seal) ,..""%%:r; AMBER G, BRIGGS ~' Norary Public, Stete of Texes x,:~:' = My CommissionExplres ''•~'f tO'` November O5, 2013 THE STATE OrF TEXASI COUNTY OF O1IA This instrument was acknowledged before me on the ~l day of ~QL, 2012, by John C. Kesel, City Manager of the City of Schertz, Texas, a Texas municipal corporation, on behalf of said City. .~ Notary ublic Signature as avaaaa asaaa»aaaaa as»aaaa '~, SARAH E. GONZALFl y (Seal) ma ~ *®* Notary Public ' y' State of Texas ~ ~ y ?~ Comm. Exp. 10-31.2012 y ~~c'ati~c~c~c~ca~c~c~ c~ e~ca~c~tiaw~e~c~tti~c 1937294.7 13 EXHIBIT A Exhibit A - TPDES Permit No. WQ0014667001 1937294.7 14 EXHIBIT A w .,ay~ .o ~y ,°' ~ ~ m 'm 'm w `c '~ 0 0 0 0 0 yy ~ {{~~ ^~ 4 cf n a ~ O ~ a A ~ N~ V U V C7 q. tp~~ ~-.~ ~ v ~ bU q G ~ ~ ~ ~ ~ . d P ~~--++ A ~ ~ in A `~ ~ a o :~ °i A ;p ~ ~ ~ ~ ~ x x x ~ ~'a° ~ o ° a ~ ~ ~ ~ ~ ~ ~ v ~q;~ ~ ~ a z c~ ~°o ~ Z ,.~ ~ b ~ o 0 ~ ~ ~~ o,o q ~ ~p>, o ~ o cc]] _ ~yi ~~.yy o 3p O ~ b A ~ R ~-+ •~t N Vl H ~ y~ q~ ~.7 ° tiA 5^s'Sit ~ a p •5 ~ .mss O ~ ~ O ~ o ~ ~ ~ a ~ ~~ a bob ~~ ~ '~ > ~.~ u o G y ^ .d a7 ~+ b o aVbi o ~ Y ~ p ~+ ~ ~ ~/p~ Yi H U ~ y b ~ +~ :~ ~ ~ v v ,y N yWM ~ ~ }~ ,g y Z b~ ~~ ~ ~~, ~ o ~ •~ h w ~ W ~ a ~ o „ ,~ v ° a sa ~ o p, ~ ~ ~ PO v .S o . ~ ~ o w ~ o ~~ m ~ w 'u b g .c ~ o o a o ~n q u ~ o ~ m ~ ~.~yyy .~ ~ ~ ~ a ~ m .o ~ - ~ a ~ '`~ .tea ~ a p ~ A~ H t~~l w U F° Ltl F-~ c°~ a. N F+ W F U k. .-. (V M d' vi b N a City of Schertz TPDES Permit No- WQ001466700] Bacteria concenhation (L'. cola or Enterococci) -Colony Forming Units (CFU) or Most Probable Number (MPN) of bacteria per 100 milliliters effluent. The daily average bacteria concenn~ation is a geometric mean of the values for the effuent samples collected Lr a calendar month. The geometric mean shall be determined by calculating [he nth root of the product of all measurements made in a calendar month, where n equals the number of measurements made; or, computed as the antilogarithm of the arithmetic mean of the logazithms of all measurements made in a calendar month. For any measurement of bacteria equaling zero, a substituted value of one shall be made for input into either computation method. If specified, the 7-day avemge for bacteria is [ire geometric mean of the values for all effluent samples collected during a calendar week. f Daily avemge loading (Ibs/day) -the aritluuetic avemge of all daily discharge loading calculations during a period of one calendar month. Theso calculations must be made for each day of the month Otat a parameter is analyzed. The daily discharge, in terms of mass (lbs/day), is calculated as (Flow, MGD x Concentration, mg(1 x 8.34). g. Daily maximum loading (Ibs/day) -the highest daily discharge, ht terms of mass (Ibs/day), within a period of one calendar month. 3. Sample Type u. Composite sample -For domestic wastewater, a composite sample is a sample made up of a minimum of three effluent portions collected in a continuous 24-hour period or dw•ing the period of daily discharge If less than 24 hours, and combined in volumes propotfional to How, and collected at the intervals required by 30 TAC § 319.9 (a). For industrial wastewater, a composite sample is a sample made up of a minimtun of three effluent portions collected in a continuous 24-how period m• during the period of daily discharge if less than 24 hours, acrd combined in volumes proportional to flow, and collected at the intervals required by 30 TAC § 319.9 (b). b. Grab sample - an individual sample collected in less than IS minutes. 4. Treatment Facility (faeihty) -wastewater facilities used in the conveyance, storage, treatment, recycling, reclamation and/or disposal of domestic sewage, industrial wastes, agricultural wastes, recreational wastes, or other wastes including sludge handling or disposal facilities under the jruisdiction of the Cmnnrission. 5. The term "sewage sludge" is defined as solid, semi-solid, or liquid residue generated during the treatment of domestic sewage in 30 TAC Chapter 312. This includes the solids [hat have not been classified as hazardous waste separated fi~om wastewater by unit processes. 6. Bypass -the intentional diversion ofa waste stream from any portion of a treatment facility. MON1TORiNG AND REPORTING REQUII2EMENTS 1. Self-Reporting Monitoring results shall be provided at the intervals specified in tbe permit. Unless otherwise specified in this permit or otherwise ordered by the Commission, the penuittee shall conduct effluent sarnpling and reporting in accordance with 30 TAC §§ 319.4 - 319.12. Unless otherwise specified, a monthly efflaent report shall be submitted each month, to [he Enforcement Division (MC 224), by the 201h day of Hre following month for each discharge which is described by 0»s permit whether or not a discharge is made for that month. Monitoring results must be reported on an approved self-report form that is signed and certified as required by Monitoring and Reporting Requvernents No. 10. As provided by state law, tLe permittee is subject to administrative, civil and criminal penalties, as applicable, for negligently or knowingly violating the Clean Water Act (CWA); TWC §§ 26, 27, and 28; and THSC § 361, including but not limited to knowingly making any false statement, representation, or certification on any report, record, or other document submiHed or required fo be maintained under [Lis permit, including monitoring reports or reports of compliance or noncompliance, or falsifying, tampering with or knowingly rendering inaccuraee any monitoring device m• method required by this permit or violating any otter requirement imposed by state or federal regulations. 2. Tes[Procedures a. Unless otherwise specified in this penni[, test procedures for the analysis of pollutants stroll comply with procedures specified in 30 TAC §§ 319.11 - 319.12. Measurements, tests, and calculations shall be accurately accomplished in a representative meaner. b. All labm~atmy tests submitted to demonstrate compliance with this permit must meet Ore requirements of 30 TAC § 25, EnvL~omnental Testing Laboratory Accreditation and Certification. Page 4 City of Schertz TPDES Permit No. WQ0014667001 c. In addition to the above, any effluent violation which deviates from the permitted effluent limitation by more than 40% shall be reported by the permittee in writing to the Regional Office and the Enforcement Division (MC 224) within 5 working days of becoming aware of the noncompliance. d. Any noncompliance other than that specified in this section, or any required information not submitted or submitted incon~ectly, shall be reported to the Enforcement Division (MC 224) as promptly as possible. For effluent limitation violations, noncompliances shall be reported on the approved self-report form. 8. In accordance with dte procedures desa~ibed in 30 TAC §§ 35.301 - 35.303 (relathrg to Water Quality Emergency and Temporary Orders) if the permittee knows in advance of [he need for a bypass, it shall submit prior notice by applying for such authorization. 9. Changes in Discharges of Toxic Substances All existing manufacturing, commercial, mining, and silvicultural pemtittees shall notify the Regional Office, orally or by facsimile transmission within 24 hours, and bout the Regional Office and the Enforcement Division (MC 224) in writing within five (5) working days, after becoming aware of or having reason fo believe: a. That any activity has occured or will occur which lvould result In the discharge, on a routine or frequent bests, of any toxic polhdant listed at 40 CFR ParE 122, Appendix D, Tables II and III (excluding Total Phenols) which is not limited in the permit, if that discharge will exceed the highest of the following "noti5catimt levels": i. One hundred micrograms per liter (100 µg/L); ii. Two hundred micrograms per liter (200 µg/L) for acrolein and acrylonihile; five hundred uicrograms per liter (500 µg11,) for 2,4-dinitrophenol and for 2-methyl-4,6-dinitrophenol; and one milligram per liter (1 mg/L) for antimony; iH. Five (5) times the maximum concentration value reported for that pollutant in the permit application; or iv. Tha level esttblished by the TCEQ. b. That any activity has occui7ed or will occur which would result in any discharge, on a nonroutine or infi~equent basis, of a toxic pollutant which is not linri[ed in the permit, if drat discharge will exceed the highest of the following "nolificadon levels": i. Five hundred microgmms per liter (500 µg/L); R. One milligtnm per liter (I mg/L) for antimony; iii. Ten (1D) times fire maximum concentra[lon valuereported for that pollutant In the permit application; or iv. The level established by the TCEQ. 0. Signatories to Reports All reports and other information requested by the Executive Director shall fie signed by the person and in the manner requh ed by 30 TAC § 305.128 (relating to Signatories to Reports). 11. All Publicly Owned Treatment Works (POTWs) must provide adequate notice to the Executive Director of the following: a. Any new introduction of pollutants into the POTW from an indirect discharger which would be subject to CWA § 301 or § 306 if it were duectly discharging those pollutants; b. Any substantial change in the volume or character of pollutants being iuh•oduced into that POTW by a source introduciugpollutants into the POTW at the time of issuance of the permit; and c. For the purpose of this pungreph, adequate notice shalt include infonnatlon on: i. The quolity and quantity of effluent introduced into the POTW; and ii. Any anticipated impact of the change on the quantity or' quality of effluent to be discharged from the POTW. Page 6 City of Schertz 3. Inspections and Entry TPDESPermitNo. W00014667001 a. Inspection and entry shall be allowed as prescribed in the TWC Chapters 26, 27, and 28, and THSC § 361 b. The members of the Commission and employees end agents of the Commission are entitled to enter any public or private property al any reasonable time for the purpose of inspecting and inves(igating conditions relating to the quality of water in the state or the compliance with any rule, regulation, permit or other order of [he Commission. Members, employees, or agents of the Commission and Commission contractors are entitled to enter public or private property at any reasonable tints to investigate or monitor or, if the respons161e party is not responsive or there is an immediate danger to public health or the environment, to remove or remediate a condition related to the quality of water in the state. Member, employees, Commission contractors, or agents acting nnder this authm~ity who enter private property shall observe the establishment's rules and regulations concerning safety, internal security, and fire protection, and if the property has management in residence, shall notify management or the person then in charge of his presence and shall exhibit proper credentials. If any tnernber, employee, Commission contractor, or agent is refused the right to enter ht or on public or private property under this authority, the Executive Director may invoke the remedies authorized in TWC § 7.002. The statement above, that Commission enhy shall occur in accordance with an establishment's roles Doti regulations concerning safety, internal security, and fire protection, is not grounds for denial or restriction of enh'y to any part of the facility, but merely describes the Commission's duty to observe appropriate rules and regulations during an inspection. 4. FermitAmendmentand/orRenewal a. The pennittee shall give notice to Lhe Executive Director ns soon as possible of any plarmed physical alterations m• additions to the permitted facility if such alterations or additions would require a permit amendment or result in a violation of permit requirements. Notice shall also be requned under this paragraph when: i. The alteration or addition tb a permitted facility may meet one of the criteria for determining whether a facility is a new sow'ce in accordance with 30 TAC § 305.534 (relating to New Sources and New Dischargers); or ii. The alteration or addition could significantly change the nature or increase fire quantity of pollutants dischm'ged. This notification applies to polhdants that are subject neither to effluent limitations in the permit, nor to notification requirements iu Monitoring and Reporting Requirements No. 9; iii. The alteration or addition results in a significant change in the permittce's sludge use or disposal practices, and such alteration, addition, or change may justify dre application of permit conditions that ate different from or absent in the existing permit, hicluding notification of additional use or disposal sites not reported during the permit application process or not reported pursuant [o an approved land application plan. b. Prior fo any facility modifications, additions, or expansions that will increase the plan[ capacity beyond [he permitted flow, the permittee must apply for and obtain proper authorization from the Commission before commencing conshuction. c. The permittee must apply for an amendment m• renewal at leas[ 130 days prior to expirafion of the existing permit iu order to continue a permitted activity after the exph'ation date of ilia permit. 7f an application is submitted prior to the expiration date of the permit, dre existing permit shall remain in affect until the application is approved, denied, or returned. If the application is returned or denied, authorization to contimre such activity shall terminate upon the effective date of the action. if an application is not submitted prior to the expiration date ofthe permit, thepermit shall expire and authorization to conlinite such activity shall terminate. d. Prior to accepting or generating wastes wldch are not described in the permit application or which would result in a significant change in the quantity or quality of the existing discharge, the permittee must report the proposed changes to the Commission. The pennittee must apply for a permit amendment reflecting any necessary changes in permit conditions, including effluent limitations for pollutants not identified and limited by [his pernrit. e. Tn accordance with the TWC § 26.029(b), after a public hearing, notice of which shalt be given to the permittee, the Commission may require the pennittee, from time to thee, for good cause, iu accordance with applicable laws, to conform to new or additional conditions. f. If any toxic efflaenl standard or prohibition (including any schedule of compliance specified in such effluent standard or prohibition) is prmnulgated under CWA § 307(a) for a toxic pollutant which is present in the discharge and that standard or prohibition is mmg stringent than any limitation on the pollutant in this permit, Ibis permit shall be modified or revoked and reissued to conform to the toxic e$]uent standard or prohibition. The pernrittee shall comply with effluent standards or prohibitions established wider CWA § 307(a) fm' tonic pollutants within the time provided im the regulations that established those stwdards or prohibitions, even if the permit has mot ye[ been modified to incorporate the requirement. Page 8 City of Schertz TPDESPermitNo. WQ0014667001 2. Upon request by the Executive Director, the permil[ce shall take appropriate samples and provide proper analysis in m~der to demonshate compliance with Commission rules. Unless otherwise specified in ibis permit or otheawise ordered by the Conunission, the permiltee shall cwnpty with all applicable provisions of 30 TAC Chapter 312 concerning sewage sludge use and disposal and 30 TAC §§ 319.2] - 319.29 concerning the discharge of certain hazm'dous metals. 3. Domestic wastewater treatment facilities shall comply with the following provisions: a. The permiltee shall notify the Municipal Permits Team, Wastewater Petitting Section (MC 348) of the Water Quality Division, in writing, of any facility expansion at least 90 days prior to conducting such activity. b. The permiltee shall submit a closw~e plan for review and approval to the Municipal Permits Team, Wastewater Permitting Section (MC ]48) of the Water Quality Division, for any closure activity at least 90 daps prior to conducting such activity. Closure is [Ire act ofpermanently taking a waste management unit or treannent facility out of service and includes the pennanant removal from service of auy pit, tank, pond, lagoon, surface impoundment and/or other treannent unit regulated by this permit. 4. The pennittee is responsible for installing prior to plant start-up, and subsequently maintaining, adequate sefegaards to prevent the discharge of untreated or inadequately treated wastes Boring electrical power fallures by means of alternate power sources, standby generators, and/or retention of inadequately treated wastewater', 5. Unless otherwise specified, the permiltee shall provide a readilyy accessible sampling point and, where applicable, an efSueut flow measw'ing device or other acceptable means by whicL effluent flow may be determined. G. The permiltee shall remit an annual water quality fee to the Commission as required by 30 TAC Chapter 21. Failure to pay the fee may result in revocation of this permit under TWC § 7.302(bx6). 7. Documentation For all written notifications [o the Commission required of the permiltee by this permit, the permiltee shall keep and make available a copy of each such notification under the same conditions as self-monitoring dale are requrred to be kept and made available. Except for information requhed for TPDES permit applications, effluent data, including affluent data in permits, draft permits and permit applications, and other information specified as not confidential in 30 TAC §§ 1.5(d), any information submitted pursuant to this permit pray be claimed as confidential by the subrnitter. Any such claim roust be asserted in the manner prescribed in the application form or by stamping the words confidential business information on each page containing such information. If no claim is made at the time of submissioq information may be made available to the public without further notice. If the Cotmnission or Executive Director agrees with the designation of confidentiality, the TCEQ will not provide the information for public inspection unless required by the Texas Attorney General or a court pursuant to an open records request. If the Executive Duector does not agree with tlra designation of confidantiality,Ore person submitting the infmrnatiou will be notiSed. 8. Facilities that generate domestic wastewater shall comply with the following provisions; domestic wasteevaler treatmenf facilities at permitted indush•ial sites are excluded. a. Whenever flow measurements for any domestic sewage tteatmenE facility reach 75% of the permitted daily average or annual average flow for fhrea wnsecutive months, the permiltee must initiate engineering and financial planning for expansion and/or upgrading of the domestic wastewater dratment and/or collection facilities. Whenever the Flow reaches 90% of the pennilted daily average or annual average flow for three consecutive months, the permiltee shall obtain necessary authorization from the Commission to wmmence wnslnmtimr of the necessity additional treannent and/or collection facilities. In the case of a domestic wastewater treatment facility which reaches 75% of tba pemritted daily average or armual average Flow for three consecutive months, and the planned population to be served or the quantity of waste produced is no[ expected to exceed the design limitations of the treatment facility, the permiltee shall submit an engineering report supporting this claim to Ore Lxecutive Director of the Commission. If in the judguent of the Executive Director the population to be served will not tense permit nonwmpliance, then the requirement of this section may be waived. To be effective, a»y waiver must be in writing and signed by the Drrector of the Enforcement Division (MC 149) of the Commission, and such waiver of these requhements will be reviewed upon expiration of the existing permit; however, any such waiver shall nee be interpreted as cwrdmring or excusing any violation of any permit pmameter. b. The plans and specifications for domestic sewage collection and treatment works associated with any domestic permit mast be approved by the Commission and faihu'e to secure approval before cmnmencing consuuction of such works or making a discharge is a violation of this permit and each day is an additional violation until approval has been secured. Page 10 City of Schertz SLUDGE PROVISIONS TPDES Permit No. WQ0014667001 The permittee is authorized to dispose of sludge only a[ a Texas Commission on Envirmunental Quality (TCEQ) authorized land application site or co-disposal landfill. The disposal of sludge Iry land application on property owned, leased or under the direct control of the permittee is a violation of the permit mdess the site Is authorized with the TCEQ. This provisiar does not authorize Distribution and Marketing of sludge. This provision does not authorize land applicatimr of Class A Sludge. This provision does not authorize the permittee to land apply sludge on property owned, leased or under the dh•ect cmrtrol of the perndttee, SECTION I. REQUIREMENTS APPLYFNG TO ALL SEWAGE SLUDGE LAND APPLICATION A. GeneralRegnirements 1. Tha permittee shall handle and dispose of sewage sludge in accordance with 30 TAC § 312 and all other applicable state and federal regulations in a manner that protects public health and the environment from any reasonably anticipated adverse effects due to any toxic pollutants that may be present in the sludge. 2. In all cases, if Tire person (permit holder) who prepaz~es the sewage sludge supplies the sewage sludge [o another person for land application use or [o the owner or lease holder of the laud, dre permit holder shall provide necessary information to the pazties who receive the sludge to assure compliance with These regulations. 3. The permittee shall give 180 days prior notice to the Executive D'u~ctor in care of the Wastewater Pertitting Section (MC 148) of the Water Quality Divisimr of any change planned in the sewage sludge disposal practice. B. Testing Requirements 1. Sewage sludge shall be tested once during the term of this perniil hr accordance with the method specified in both 40 CPR Part 261, Appendix II and 40 CFR Part 268, Appendix I [Toxicity Characteristic Leaching Procedure (TCLP)] or other method that receives the prior approval of the TCEQ for the contaminants listed in 40 CFR Part 261.24, Table 1. Sewage sludge failing [his test shall be managed according to RCRA stmrdards for generators of hazardous waste, and the waste's disposition must be in accordance with all applicable requirements for hazardous waste processing, storage, or disposal. Following failure of any TCLP test, the management or disposal of sewage sludge at a facility other than an authorized hazaz•doi~s waste processing, storage, or disposal facility shall be prohibited until such time ns the permittee can demonstrate the sewage sludge no longer exhibits Tire hazardous waste toxicity chm'acteris[ics (as demonstrated by the results of the TCLP tests). A written report shall be provided to both the TCEQ Registration and Reportiog Section (MC 129) of the Permitting and Remediatimt Support Division and the Regional Director (MC Region 13) within seven (7) days after failingihe TCLP Test. The report shall cmrtain test results, certification that unauthorized waste management has stopped and a smnmary of alternative disposal plans that canply with RCRA standards for [he management of hazardous waste. The report shall be addressed to: Director, Regishation, Review, and Reporting Division (MC 129), Texas Commission on Envh-onnrental Quality, P.O. Box 13087, Austin, Texas 78711-3087. In addition, Tile permittee shall prepare an annriai report on the results of all sludge toxicity testing. This annual report shall be subrnitled to the TCEQ Regional Office (MC Region 13) and the Water Qmality Compliance Monitoring Team (MC 224) of the Enforcement Division by September 30 of each year. Page 12 City of Schertz TPDES Permit No. WQ0014667001 b. Tluee altenratives are available to dernonshate compliance with Class B criteria for sewage sludge. Alternative I i. A minimum of seven random samples of the sewage sludge shall be collected within 481rours of the time the sewage sludge is used or disposed of during each monitoring episode for the sewage sludge, ii. The geometric mean of the density of fecal colifonn in the samples collected shall be less then either 2,000,000 1viPN per gram of total solids (dq~ weight basis) or 2,000,000 Colony Forming Units per gram of total solids (thy weight basis). Alternative 2 -Sewage sludge that is used or disposed of shall be treated in one of the Processes to Significantly Reduce Pathogens (PSRP) described in 40 CFR Part 503, Appendix B, so long as all of the following requiremenf are met by the generator of the sewage sludge. i. Prior [o use or disposal, all [he sewage sludge must have been generated from a single location, except as provided in paragraph v, below; ii. An Jndependent Texas Licensed Professional Engineer must make a certification to fhe generatm• of a sewage sludge drat the wastewater treatment facility generating the sewage sludge is designed to achieve one of the PSRP at the permitted design loading of the facility. The certification need only be repeated if the design loading of the facility is increased. The certification shall include a statement indicating the design meets all the applicable standards specified in Appendix B of 40 CFR Pmt 503; iii. Prior to any off-site transpormtion or on-site use m' disposal of any sewage sludge generated at a wastewater heamrent facility, the chief certified operator of the wastewater h•eamrent facility or otherresponsible official who manages the processor to significantly reduce pathogens a[ the wastewater treatment facility for the permittce, shall certify that the sewage sludge underwent at least the mininum operational requirements necessary in order to meet one of the PSRP. The acceptable processes and the minimum operational and record keeping requirements shall be in accordance with established U. S. Environmental Protection Agency final guidance; iv. All certification records and operational recm~ds describing how the requirements of this paragraph were met shall be kept by the generator for a minimum of three years and be available for inspection by commission staff fot review; and v. If the sewage sludge is generated firm a mixture of sources, resulting fi~om a person who prepares sewage sludge from more than one wastewater heatnrent facility, the resulting derived product shall meet one of the PSRP, and shall meet the certification, operation, and record keeping requirements of this paragraph. Alternative 3 -Sewage sludge shall be heated in an equivalent process that has keen approved by the U. S. Environmental Protection Agency, so long as all of the following requirements are met by the generator of the sewage sludge. i. Prior to use or disposal, all the sewage sludge must have been generated fi'om a single location, except as provided in paragraph v. below; ii. A'ior to any off-site n•ansportation or on-site use or disposal of auy sewage sledge generated at a wastewater treatment facility, the chief certified operator of the wastewater heatment facility or other responsible official who manages the processes to significantly reduce pathogens at the wastewater treatment facility for the permittee, shall certify that the sewage sludge underwent at least the minimum operational regairements necessary iu order to meet one of [he PSRP. The acceptable processes and the minimrun operational and record keeping requirements shall be iu accordance with established U. S. Envuonmental Protection Ageucy final guidance; hi. All certification records and operational records describing how the requirements of this paragraph were met shall be kept by the generator for a minimum of three years urd be available for hrspecfimr by cmnmissimr staff for review; iv. The Executive Directm~ will accept from [he U. S. Env'vonnrental Protection Agency a feuding of equivalency to the defined PSRP; and Page 14 City of Schertz TPDESPermitNo. WQ001466700I Alternative 6 - The pH of sewage sludge shall be raised [0 12 or higher by alkali addition and, without the addition of more alkali shall remain at 12 or higher for fwo bouts and [hen remain at a pH of 11.5 or higher for an additional 22 hours at the time the sewage sludge is prepared for sale or given away in a bag or other container. Altemative 7 - The percent solids of sewage sludge that does not contain unslabilized solids generated in a primazy wastewater treatment process shall be equal to or greater [Iran 75% based on the moisture content and total solids prior to mixing with other materials. Unstabllized solids are defined as organic materials hr sewage sludge that have not been treated in either atr aerobic or anaerobic h'eatmen[ process. Ahernative8- The percent solids of sewage sludge that contains unstabiliud solids generated in a primary wastewater treatment process shalt be equal fo or• greater than 90% based on the moisture content and total solids prior to mixing with other materials at tle time the sludge is used. Uns[abilized solids are defined as organic materials in sewage sludge that have not been treated It either an aerobic or anaerobic treatment process. Alternative 9 - i. Sewage sludge shall be injected below [he surface of the land. r7. No significant amount of the sewage sludge shall be present on the land surface within one hour after [he sewage sludge is injected. iu. When sewage sludge that is injected below the surface of dre land is Class A with respect to pathogens, tha sewage sludge shall be injected below the land surface within eiglt[ hours after being discharged from the pathogen treatment process. Alernative 10- i. Sewage sludge applied to [he land smface or placed on a surface disposal site sha0 be incorporated into the soil within six hours after application to or placement om the land. ii. When sewage sludge That is incorporated into the soil is Class A with respect to pathogens, the sewage sludge shall ba applied to or placed on the laud within eight hours after being discharged from the pathogen treatment process. C. MonltoringRequl•eroents Toxicity Characteristic Leaching Procedure (TCLP) Test -once during the term ofthis permit PCBs -once dtu•iug the term ofthis permit All metal constituents and fecal coliform or Salmonella sp. bacteria shall be monitored at the appropriate Creqnency shown below, pursuant to 30 TAC § 312.46(a)(1): Amount of sewage sludge (*) meh'ic_ tons ner 365-dav period Monitorine Freeuencv 0 to less than 290 290 to less than 1,500 1,500 to less than 15,000 15,000 or greater Once/Yeaz' Once/Quarter Onceffwo Months Once/Mondr (*) The amount of bulk sexmge sludge applied to the land (Ary weight basis). Representative samples of sewage sludge shall be collected and analyzed in accordance with [he methods referenced in 30 TAC§312.7 Page 16 City of Schetiz TPDESPermitNo. WQ0014667001 4. An information sheet shall be provided to the person who receives bulk sewage sludge sold or given away. The information sheet shall contain [he following information a. The name and address of the person who prepared the sewage sludge that is sold or given away fn a bag or other container for application to the land. b. A statement that application of the sewage sludge to the land is prohibited except in accm'dance with the instruction on the label or information sheet. c. The annual whole sludge application rate for the sewage sludge application rate for the sewage sludge that does not cause any of the cumulative pollutant loading rates in Table 2 above to be exceeded, unless the pollutant concentrations hr Table 3 found hr Sectioo E above are met. D. Notification Requlrernents 1. If bulk sewage sludge is applied to laud iu a State other than Texas, written uo[ice shall be provided prior to the initial land application to the permitting authority for the State in which the bulk sewage sludge is proposed to be applied. The notice shall include: a. The location, by sheet address, and specific latitude and longitude, of each land application site. b. The epproxhnate time period bulk sewage sludge will be applied to the site. o. The name, address, telephone number, and National Pollutant Discharge Elimination System permit number (if appropriate) for the person who will apply the balk sewage sludge. 2. The permittec shall give 180 days prior notice to the Executive Director in care of the Wastewater Permitting Section (MC 148) of the Water Quality Division of any change planned in the sewage sludge disposal practice. E. Record keeping Requirements 1Yre sludge documents will be retained at the facility site and/m• shall be readily available for review by a TCEQ representative. The person who prepares bulk sewage sludge or a sewage sludge material shall develop the following ioforma[ion and shall retain the information a[ the facility site and/or shall be readily available for review by a TCEQ representative for a period of five years. If the per'mittee supplies the sludge fo another person who land applies [he sludge, tho permittec shall notify the laud applier of the requirements for record keeping found in 30 TAC § 312.47 for persons who land apply. I. The coucentrntion (mg/kg) in the sludge of each pollutant listed in Table 3 above mrd the applicable pollutant concentration criteria (mg/kg) or the applicable cumulative pollutant loadutg rate and the applicable cumulative pollutant loadingrate limit (lbs/ac) listed in Table 2 above. 2. A description of how the pathogon reduction requirements are met (including site restrictions for Class B sludge, if applicable). 3. A description of bow [he vector attraction reduction requhrements m'e mot. 4. A description ofhow the management practices listed above in Section I1.C aze being met. 5. The following certification statement: "[ certify, carder penalty of law, that the applicable pathogen requvenrents in 30 TAC § 312.82(a) or (b) and [he vector attraction reduction requirements hr 30 TAC § 312.83(6) have been met for each site on which bulk sewage sludge is applied. This deternrina[ion has been made under my dvection and supervision in accordance with the system designed to ensrve that qualified personnel prroperly gather and evaluate the information used [o determine that the management practices have been met. 1 mn aware [hat there are significant penalties for false certification including fine and imprisomnent" 6. The recormnended agronomic loading rate 6~mn the references listednr Section ILC.3. above, as well as the actual agronomic loading rate shall fie retained. The person who applies bulk sewage sludge m• a sewage sludge material shall develop the following information and shall retain the information at the facility site and/or shall be readily available for review by a TCEQ representative iudefini[ely. If the permittec supplies dre sledge to another person who land applies the sludge, the permittec shall notify the land applier of the requirements for reca'd keeping found in 30 TAC § 312.47 for persons who land apply: Page 18 City of Schertz i5. Amount of sludge land applied in dry fons/year. TPDESPermitNo. WQ0014667001 16. The certification statement listed in either 30 TAC § 312.47(a)(4)(A)(ii) or 30 TAC § 312.47(a)(5)(A)(ii) as applicable to the permittee's sludge h'eahnent activities, shall be attached to the animal repotting form. 17. When the amount of any pollutant applied to the land exceeds 90% of [he cwmulative pollutant loading rate for that pollutant, as described in Table 2, the permittee shall report the following information as an attachment to the annual repm'ting form. a. The location, by street address, and specific latitude and longitude. b. The nttmber of acres in each site on which bulk sewage sludge is applied. c. The date and time bull<sewage sludge is applied to each site. d. The cumulative amount of each pollutant (i.e, pounds acre) listed in Table 2 ht the bulk sewago sludge applied to each site. e. The amount of sewage sludge (i.e., dry tons) applied to each site. The above records shall be maintained on a montlily basis and shall be made available to the Texas Coaunission ou Frtvironmental Quality upon request. Page 20 City of Scher[z G. Repotting Requirements TPDESPermitNo. WQ0014667001 The permittee shall report atmually to the TCEQ Regional Office (MC Region 13) and Water Quality Compliance Monitoring Team (MC 224) of the Enforcement Division by September 30 of each year the fo]lowing information: I. Toxicity Characteristic LeaclringProcedure (TCLP) results. 2. Annual sludge production iu dry tons~year. 3. Amount of sludge disposed in a municipal solid waste landfill in dry tons/year. 4. Amount of sludge transported interstate in dry tons/year. 5. A certification that the sewage sludge meets the requh'etnents of 30 TAC § 330 concerning the quality of the sludge disposed iu a mttniclpal solid waste landfill. 6. Identity of haulers) and transportu'regishation number. 7. Owner of disposal site(s). S. Location of disposal site(s). 9. Date(s)ofdisposal. The above records shall be maintained on-site on a tnonthly basis and shall be made available fo the Texas Cormnission on Envvonmental Quality upon request. Page 22 City of Schertz TPDES Permit No. WQ0014667001 9. )n accordance with 30 TAC §319.9, a permittce that has at least Twelve months of uninterrupted compliance with its bacteria limit may notify the commission in writing of ifs compliance and request a less frequent measw~ement schedule. To request a less frequent schedule, the permittee shall submit a written request to the TCEQ Wastewater Permitting Section (MC 148) for each phase that includes a different monitoring frequency. The request must contain all of the reported bacteria values (Daily Avg. and Daily Max/Single Grab) for The twelve consecutive months immediately prior to the request. 7f the Executive Director finds that a less frequent measurement schedule is protective of human health and the environment, the permittee will be given a less frequent measurement schedule. For this permit, 1/month will be reduced to I/quarlgr for the Interim I and Interim II Phases, and 2/month will be reduced to 1/month for the Final Phase. A violation of any bacteria [unit by a facility that has been granted a less frequent measurement schedule will require the permittee to return to the standard Frequency schedule, and the permittee may not apply for another reduction in measurement frequency for at least 24 months from the date of the lest violation. The Executive Director may establish a more frequent measru~ment schedule if necessary to protect human health or the environment. Page 24 Bryan W Shaw, Ph.D., Chairman - - Buddy Garcia, Commissioner Carlos Rubinstein, Commissioner ~, - Mark R. Vickery, P.C, ExeculiveDirector 1L'XAS COMMISSION ON ENVIRONMENTAL QUALITY Protec[ing 7i?xos bg Reducing aad Preaen(ing Poiiutio» October 29, 2010 Mr. Sam D. Willoughby City of Schertz 1400 Schertz Parkway Schertz, Texas 78154-1634 Re: City of Schertz, TPDES Permit No. WQ0014667001 (RN104800289; CN600676944) Dear Mr. Willoughby: Enclosed is a copy of the above referenced permit for a wastewater treatment facility issued on behalf of the Executive Director pursuant to Chapter 26 of the Texas Water Code. Ifyou aze receiving a Texas Pollutanf Discharge Elimination System (TPDES) discharge permit and your system is a new facility or an existing facility that has been reporting to the Texas Commission on Environmental Quality (TCEQ), you may comply withself-reportingrequirements by submitting discharge monitoring reports (DMR) electronically over the Web thtrough STEERS (see enclosed flyer). Information about the elechonic DMR (eDMR) system is available at www.teegstate.tx.us/ROto/eDMR. We encourageelechonicreporting. Discharge facilities that do not use the eDMR system will receive paper DMR forms and instructions from the TCEQ Enforcement Division or from the U.S. Envitronrnental Protection Agency (EPA) if the facilityhas been submitfing DMRs to EPA. If you are receiving a land application (no discharge) permit and are required to report monitoring results, self-reporting forms and instmctions will be forwarded to you by the TCEQ Enforcement Division. Enclosed is a "Notification of Completion of Wastewater Treatment Facilities" form. Use this form when the facility begins to operate or goes iuto a new phase. The form notifies the agency when the proposed facility is completed or whenitisplacedinoperation. This notificationcomplieswiththe special provision incorporated intothepermit. When the agency receives this form, the appropriate permit requirements will be activated in the compliance system database so that accurate monitoring and reporting can occur. RD. Box ]3087 Austin, Texas 78711-3087 512-239-1000 Internet address: www.tcegstate.tx.us Bryan W. Shaw, Ph.D., Chairman '' Buddy Garcia, Commssioner %' - •`• CazlosRubinstein,Commissioner ~ 4' '~~:f Mark R. Vickery, P.C., Executive Director ~~ ~° TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preuent7ng Pollufion October 29, 2010 TO: Persons on the attached mailing list. RE: City of Schertz TPDES Permit No. WQ0014667001 This letter is your notice that the Texas Cotmnission on Environmental Quality (TCEQ) executive director (ED) has issued final approval of the above-named application. According to 30 Texas Administrative Code (TAC) Section 50.135 the approval became effective on October 21, 2010, the date the ED signed the permit or other approval unless otherwise specified in the permit or other approval. You may file a-mofion to overturn with the chief clerk. A motion to overturn is a request for the commission to review the TCEQ ED's approval of the application. Any motion must explain why the commission should review the TCEQ executive d'irector's action. According to 30 TAC Section 50.139 an action by the ED is not affected by a motion to overturn filed under this section unless expressly ordered by the commission. A motion to overturn must be received by the chief clerk within 23 days after the date of this letter. An original and 7 copies of a moion must be filed with the chief clerk iu person, or by mail to the chief clerk's address on the attached mailing list. On the same day the motion is transmitted to the chief clerk, please provide copies to the applicant, the ED's attorney, and the Public Interest Counsel at the addresses listed on the attached mailing list. If a motion to overturn is not acted on by the commission within 45 days after the date of this letter, then the mofion shall be deemed ovenvled. You may also request judicial review of the ED's approval, According to Texas Water Code Section 5.351 a person affected by the ED's approval must file a petition appealing the ED's approval in Travis County district court within 30 days after the effective date of the a royal. yen if you requestjudicial reviews you still must exhaust your a mmistrative remedies, which includes filing a mofion to overhun m accordance with the previous paragraphs. Individual members of the public may seek further infoivlatiou by calling the TCEQ Office of Public Assistance, toll free, at 1-800-687-4040. Sincerely, ~' ~av v(~a.(;t. ~. LaD nna CastaRuela Chief Clerk . LDC/ka P.O. Box 13087 Austin, Texas 7871]-3087 512-239-100D Internet address: xww.tcegstate.ix.us e ~ nu an ~ p ~ F~ o ~ g ~o ~ ,~ .V. d'i Ch d o ~ ~ ~ ~ L~ .+~ p ~ ~ ~Of z i7 0 ... ~ fi' & w '° y}aa 0 ~ e~ ~ ~ `~ ~i v O 6b w A o ~Q g ~~ ~ ~ ~' ~ ~ ~ ~ ~ '~ ~ x x a q ~ b P .o °~° ~ ~ W ~ ~ O O o a°i o ~ ,, p :~ ~ ~ .~ ~ g a ~ ao ~ ~ ;~ ~ p, mq ~ O ~~ ~ P ti" P q b q a ~ `~~ ~ ~ ~~ ~ ~ O ~~ z M e ~ °; ~ ~ ~ ~ a ~ ,~ ~ a ~~ m ~ ~ d: `g o °a k1 'd ~ a° a ~~ ~ ~~ ~ ~ aas ~" ~qry ~ `.` ~ p "~~ q ~ A ~ Pi N V ~ H b .~ Fn v ~?] pqj v ~i+d y ~ y~ O W ~ ~ !-~ ~ bb U7 ~ ~ ~ ~ U ~ ~ .p pk ,~ O O ~~~jy ~ ~1; ~'~ ~ ~ ~ h ~ o a4 N ~ ~ Lkp~ O .f01 01 ~ N °) q ~y O ~ ~ O ~ u S/1 F'O '+~ N ~ p q 'M ~ ~''~ u ,d ~ ° '.'p~ q J. o V ~ O? qq ~'-' qry pW Z O~ ~ Q ~ Pi O ~ N N 'G g~ Fn 'A A ~ '~ O q n O p 0 O ~ p O ~ ~ ~~ _ ~ ~~ ~ e w ~'i '+~y v '. ~ ~~' ~ ~~~ o~ ~ ~ z ~b~ ~ ~ ~ spy,' }a v ~ [: FI p ~ M ~ ~ ~ ~ ~ ~ ~ A '~ ~ ~ T q0 ~ ~ ~y ~ ~ td ~ d5 yJ •~ ~ A ~ g U tF77+ ~i ~ri v vi ~ri N N m W EXHIBIT B Exhibit B -Operating Budget through September 30, 2012 1937294.7 ~ $ Cibolo Creek Municipal Authority-ATTACHMENT B To: John Bierschwale From: Clint Ellis Re: Estimate to Operate Sedona Wastewater Plant (2-15-12) All prices are estimates of annual costs. CCMA will bill the City based on time and materials. Manpower Hours: $42,321 We estimate that 2 trips will be made to the plant during the day to run tests, clean up around the plant, and collect samples. An additional trip will be made during night shift to ensure smooth operation. 3 Trips per day: 1 Hour per Day Trip/2 Hours per night trip - 1460 manpower hours per year 9 Miles Round trip: 3 Trips: 27 Miles per day: 9855 Miles per year Operation and Maintenance: $10,256 Annual Inspection of Flow Meter - $200 Annual Contracted maintenance and certification of Chlorine system - $1000 Maintenance Budget for OiUGrease/Belts/Bearings etc - $500 Misc Poles, Brushes, Pipes, Fittings, HTH, gloves, etc - $1500 Annual Web Based Service fee for Auto Dialer -$300 (only if Rayco Auto dialer is selected, othertivise there may be difference charges here. Sludge Disposal from Digester - $5000 (4 times per year, includes all day rental) Lab Testing Supplies (Buffers, Powder Pillows, Reagents, etc) - $1200 Chlorine Gas - $556