JOINT CONTRACT BETWEEN THE BOROUGH OF MADISON
AND THE BOROUGH OF CHATHAM, NEW JERSEY, PROVIDING FOR ADDITIONS AND
MODIFICATIONS TO THE EXISTING SEWAGE TREATMENT AND DISPOSAL PLANT,
AND FURTHER PROVIDING FOR THE MAINTENANCE AND OPERATION OF THE EXISTING
AND PROPOSED SEWAGE TREATMENT AND DISPOSAL PLANT.
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Contract made this 12th day of September 1988,
between the Borough of Madison, in the County of Morris, and the Borough
of Chatham, in the County of Morris, both of said Boroughs being municipal
corporations organized and existing under the laws of the State of
New Jersey.
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RECITALS
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Said Boroughs of Madison and Chatham (hereinafter
referred to as "municipalities") have heretofore by contract dated
August 29, 1910, provided for the joint construction, maintenance
and operation of a trunk sewer and sewage disposal plant pursuant
to an act of the Legislature of the State of New Jersey, entitled
"An Act to authorize any two or more municipalities in this State
to jointly provide, maintain and operate trunk or outlet sewers and
sewage disposal plant or plants or a system of sewerage and to otherwise
act jointly concerning the collection, removal or disposal of sewage
and make contracts in relation thereto," approved April 8, 1910. By
further contracts between said municipalities made January 2, 1929,
July 10, 1950, and November 7, 1968, the parties hereto agreed to
construct, operate and maintain a sewage disposal plant of the activated
sludge type. In accordance with the provisions of said contracts,
the parties hereto have constructed a joint trunk sewer and sewage
disposal plant and have operated and maintained said sewer and plant
in Joint Meeting to the date of this contract.
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Pursuant to the provisions of Chapter 63 of Title 40 of the Revised Statutes of the State of New Jersey, particularly Article 2 thereof, and any other laws applicable thereto, the parties desire to provide for the continued maintenance and operation of the existing joint trunk sewer and sewage treatment and disposal plant in Joint Meeting as authorized by the aforementioned contracts, and, in order to provide for the better operation of the system of sewers maintained singly and jointly by the parties hereto, said parties further desire to provide for the construction of certain additions to and modifications of the existing sewage treatment and disposal plant jointly owned by them and located in the Borough of Chatham, to the end that the system of sewers owned singly and jointly by the parties hereto may provide necessary and adequate sewage facilities for the use of and by the inhabitants of said municipalities.
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The Borough Councils of said municipalities
(being the governing bodies or boards, authorized by law to have charge
of sewer systems established or to be established in such municipalities)
have united and jointly caused surveys, maps, plan, reports, specifications
and estimates (hereinafter called "plans") to be made by Elson T.
Killam Associates, Inc., d/b/a Killam Associates, for the additions
to and modifications of the sewage treatment and disposal plant. Said
plans have been submitted to, considered and approved by resolutions
adopted by the governing bodies of said municipalities and have been
ordered filed, a certified copy of such approving resolution of each
municipality having been served upon the Clerk of the other municipality.
Each municipality has, by ordinance duly passed and adopted and published
as required by law, authorized the making and entering into, by and
on behalf of each municipality of this Joint Contract.
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CONTRACT
NOW, THEREFORE, THIS CONTRACT WITNESSETH:
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That in consideration of the premises and the
mutual covenants and agreements herein contained, the parties hereto
mutually covenant and agree to and with each other as follows:
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ARTICLE I
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"Joint Meeting" — When used in this contract,
shall mean the meeting or assembly of the governing bodies of the
municipalities parties to this contract, being the governing bodies
or boards having authority to enter into contracts for the joint construction
and operation of trunk sewers, sewerage systems or disposal plants
in such municipalities, as heretofore organized pursuant to agreement
between the municipalities dated August 29, 1910, supplemented by
agreements dated January 2, 1929, July 10, 1950, and November 7, 1968,
and herein contained.
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"Existing Trunk Sewer" — When used in
this contract, shall mean the trunk sewer heretofore in existence
and jointly constructed pursuant to agreements between the municipalities
parties hereto, dated August 29, 1910, and July 10, 1950.
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"Sewage Treatment and Disposal Plant" —
When used in this contract, shall mean the sewage treatment and disposal
plant located in the Borough of Chatham at the Passaic River easterly
of Passaic Avenue and jointly constructed and operated pursuant to
agreements heretofore entered into between the municipalities dated
August 29, 1910, January 2, 1929, July 10, 1950, and November 7, 1968.
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"Debt Service Cost" — When used in this
contract, shall mean the total principal amount of all bonds and bond
anticipation notes maturing and payable by a municipality in any particular
year, plus the total amount of interest due and payable by a municipality
in that year, whether with reference to bonds and bond anticipation
notes maturing in that year or in subsequent years, and issued by
a municipality for the purpose of financing improvements authorized
by this contract.
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"Total Cost" — When used in this contract,
shall include all costs of construction and engineering; incidental,
legal and advertising expenses; costs of acquisition of land, rights
in land, easements or rights-of-way; and any and all other expenses
which may be applicable to the enlargement of the sewage treatment
and disposal plant.
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"Connection" — When used in this contract,
shall mean a connection to a sewer, and (a) to be counted as one connection
per family unit in the case of single- and multiple-dwelling buildings;
and (b) an average daily flow of 265 gallons or fraction thereof of
water metered or measured to the premises in the case of any building
or portion thereof used for industrial, commercial, educational or
other than dwelling purposes. Said average daily flow shall be computed
for an annual period.
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ARTICLE II
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Section 1. The Joint Meeting of the Borough
of Madison and the Borough of Chatham, being the meeting or assembly
of the governing bodies of said municipalities, organized pursuant
to agreement between the municipalities dated August 29, 1910, shall
continue in existence without reorganization, and said Boroughs of
Madison and Chatham hereby agree to continue the Joint Meeting of
said municipalities for the purpose of the continued maintenance and
operation of the existing trunk sewer line and the existing sewage
treatment and disposal plant heretofore constructed, maintained and
operated in Joint Meeting pursuant to contracts between said municipalities
dated August 29, 1910, January 2, 1929, July 10, 1950, and November
7, 1968. Said municipalities do further agree to jointly construct,
maintain and operate additions to and modifications of the existing
sewage treatment and disposal plant, as are more fully described in
Schedule A hereto attached and made a part of this contract.
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Section 2. The construction of the additions
to and modifications of the sewage treatment and disposal plant shall
be in accordance with the plans and specifications heretofore prepared
therefor by Elson T. Killam Associates, Inc., d/b/a Killam Associates,
entitled "Molitor Water Pollution Control Facility Additions and Modifications,"
and approved by the governing bodies of said municipalities, as the
same may be altered from time to time during the course of construction
and so approved by resolution of the governing bodies of said municipalities
and by the State Department of Health of the State of New Jersey.
Such construction shall begin as soon as may be practicable.
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Section 3. The existing trunk sewer, the existing
sewage treatment and disposal plant and the same when so enlarged
and modified pursuant to this contract shall be owned by the Boroughs
of Madison and Chatham, and said Boroughs shall have an equal and
undivided interest therein.
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ARTICLE III
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Section 1. Each of the parties hereto hereby
concurs in and consents to any and all action had or taken by the
other party for all necessary construction, and all such other work
necessary and incidental to be done within the territorial limits
of the municipality so consenting for the proper construction of the
additions and modifications of said plant pursuant to this contract;
and all such work to be done in conformity with ordinances and regulations
of the municipality in which such work is to be done.
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Section 2. The Joint Meeting of said municipalities, in addition to all powers given by this contract, shall have all such powers and authorities as are set forth in Article 2 of the Chapter 63 of Title 40 of the Revised Statutes of the State of New Jersey, as the same shall be amended or supplemented, and shall be governed thereby.
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ARTICLE IV
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Section 1. Except as provided in Section 4 of
this Article IV, the total cost of the additions to and modifications
of the sewage treatment and disposal plant as proposed by this contract,
including all engineering and architect's costs, legal and financing
costs and all other expenses directly related to such plant expansion,
shall be allocated between the participating municipalities as follows:
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Borough of Madison
Borough of Chatham
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63%
37%
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Section 2. Upon execution of this contract,
both municipalities agree that contracts for the construction of the
proposed additions and modifications to the plant should be let as
expeditiously as possible to the end that the contemplated improvement
can be completed as soon as reasonably possible.
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Section 3. To finance their respective portions
of the total cost, each municipality plans to issue bonds, and each
municipality agrees to forthwith proceed with such ordinances as may
be required to provide its proper share of the total cost of the expansion.
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Section 4. It is the object of this contract
that both the annual operating costs of the sewage treatment and disposal
plant and the total annual debt service of each municipality relating
to the financing of the plant expansion as proposed in this contract
be shared by both municipalities according to the formula set forth
in Article V, Section 1, hereof.
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Section 5. To implement the foregoing objective
as it relates to the annual debt service, the Clerk of each municipality,
not later than December 1 in the year in which its bond or bond anticipation
notes shall have been issued to finance the plant expansion proposed
by this contract and not later than December 1 of each subsequent
year until the entire principal amount of and interest on any and
all bonds issued by both municipalities for such purpose shall have
been paid, shall prepare a statement of the interest on and principal
amount of such bond and bond anticipation notes to be paid by such
municipality in the calendar year next beginning and forward the same
to the Clerk of the other municipality and to the Secretary of the
Joint Meeting.
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Section 6. The obligation of each municipality
with respect to the combined annual debt service of both municipalities
as so reported, according to the provisions of Section 5 above, shall
be equal to that percentage which the number of all connections to
the sewerage system within such municipality bears to the combined
total number of connections to the sewerage system within both municipalities
on December 31 of the preceding year.
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Section 7. If, after applying the foregoing
formula, it develops that the actual annual debt service charges of
the contracting municipalities are in excess of or less than the proper
annual debt service charge as determined by the application of the
formula set forth in Section 6 above, then the appropriate adjustment
shall be included in the next resolution adopted by the Joint Meeting
pursuant to Section 3 of Article V hereof.
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ARTICLE V
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Section 1. The cost of maintaining and operating
the sewage treatment and disposal plant shall be developed each year
by budget procedures jointly acceptable to both municipalities. The
obligation of each municipality with respect to such annual operating
budget shall be equal to that percentage which the number of all connections
to the sewerage system within such municipality bears to the combined
total number of connections to the sewerage system within both municipalities
on December 31 of the preceding year.
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Section 2. Not later than January 5 in each
year, beginning in the year 1988, it shall be the duty of the Secretary
of the Joint Meeting to make a report showing the total number of
all house connections to the sewerage system in each municipality
on the preceding December 31. Such report shall be filed by the Secretary
of the Joint Meeting with the Clerk of each municipality within five
days after its adoption by the Joint Meeting. To aid in the preparation
of such report, the Joint Meeting shall have power to engage such
experts and persons as it shall deem fit.
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Section 3. As soon as may be practicable after
January 1, 1988, and January 1 in each year thereafter, the total
estimated cost of maintenance and operation of the joint sewerage
system for such year and the percentages of the cost of maintenance
and operation of the joint sewerage system for which each municipality
shall be charged for such year shall be reapportioned as in this Article
provided and, if required, adjusted as well for debt service charges
as provided in Section 7 of Article IV hereof, and all of the same
shall be set forth in a resolution adopted by the Joint Meeting, certified
copies of which shall be filed by the Secretary of the Joint Meeting
with the Clerks of each municipality within five days after the adoption
thereof. Such reapportionment shall be retroactive and shall be effective
as of January 1 of that particular year.
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Section 4. Annual operating and maintenance
costs shall be paid in monthly installments to be due and payable
on the 15th day of each month.
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Section 5. All money so required to be paid
by the municipalities under this contract shall be paid to the Treasurer
of the Joint Meeting.
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Section 6. The obligations and percentage of
any and all costs to be borne in each year by a municipality pursuant
to this contract shall be construed and held to be a financial arrangement
between the municipalities for their mutual convenience and shall
not be held in any way to affect or be deemed or construed to so affect
or lessen the liability of either municipality with respect to, or
impair the validity of, any bonds or other obligations issued or to
be issued by such municipality, as provided in this contract.
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ARTICLE VI
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Section 1. Sewer discharge permits. No waste,
other than normal domestic sewerage from toilets, baths, showers,
wash-bowls, washing machines and sinks, shall be discharged into the
sewers or laterals connected in any way with the joint sewerage system
except pursuant to an appropriate commercial or industrial sewer discharge
permit issued by the Madison-Chatham Joint Meeting.
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Section 2. New commercial or industrial users.
New commercial or industrial users which desire to commence operations
at a new facility shall apply for and receive an appropriate commercial
or industrial discharge permit prior to commencement of operations
at the new facility.
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Section 3. Existing commercial and industrial
users. All nondomestic users discharging waste directly or indirectly
into the joint sewerage system prior to the effective date hereof,
pursuant to and within the terms of an application filed with and
approved by the Madison-Chatham Joint Meeting which contains no expiration
date, are hereby granted authority to continue to discharge those
wastes until notified to the contrary by the Madison-Chatham Joint
Meeting, pursuant to Section 4 of this Article. All such permittees,
however, as well as all other nondomestic users, shall be subject
to all the provisions of this Article.
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Section 4. Renewal of permits. If a permittee
wishes to continue discharging into the joint sewerage system, he
shall request a renewal of his sewerage discharge permit no later
than six months prior to the expiration date of the permit then in
force. If a permittee holds a permit which contains no expiration
date, he shall request a renewal of his sewerage discharge permit
no later than 90 days following notification by the Madison-Chatham
Joint Meeting, as provided in the preceding Section 3 of this Article,
unless a greater period is specified in such notice. Failure to make
a timely application may result in the suspension or revocation of
the permit. The request shall be contained in a form prepared by the
Madison-Chatham Joint Meeting. Renewal of the permit shall be contingent
upon the permittee having complied with the terms and conditions of
the expired permit.
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Section 5. Duration of permits. Permits will
expire as indicated in the permit, except that users shall be allowed
to continue to discharge into the joint sewerage system until action
is taken on renewal or denial by the Madison-Chatham Joint Meeting.
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Section 6. Changes to permits. Any nondomestic
user which proposes to make any changes in its facility or processing
that affects either the quality or quantity of its discharge to the
joint sewer system shall apply for an amended permit, which must be
approved prior to putting any changes into operation.
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Section 7. Transfer of permits. Sewer discharge
permits shall be issued to a specific nondomestic user for a specific
operation. A permit shall not be reassigned or transferred or sold
to a new owner unless the permit so provides. No permit shall be reassigned
or transferred or sold for a new or changed operation. Every permittee
shall notify the Madison-Chatham Joint Meeting within 14 days prior
to any change in ownership or corporate structure.
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Section 8. Procedure for obtaining a sewer discharge
permit.
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(1)
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Persons requiring a permit to discharge shall
complete an application form prepared by the Madison-Chatham Joint
Meeting and forward it to the Madison-Chatham Joint Meeting. Upon
receipt of all required information, the application shall be processed,
and, upon approval, a permit shall be issued.
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(2)
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An application shall be approved if the applicant
has complied with all applicable requirements of this Article, is
not known to be in violation of any other related law or regulation
and has furnished to the Madison-Chatham Joint Meeting all requested
information and if the Madison-Chatham Joint Meeting determines that
there is adequate capacity in the treatment plant to convey, treat
and dispose of the waste.
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(3)
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An application submitted by a corporation shall
be signed by a corporate officer or other executive officer so designated.
An application submitted by a nondomestic user other than a corporation
shall be signed by the proprietor or general partner.
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Section 9. Sewerage discharge permit conditions.
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(1)
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Sewerage discharge permits issued may set forth
any of the following minimum conditions:
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(a)
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Monitoring requirements, including installation
of a flow or control meter chamber.
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(b)
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Prohibitions and limitations on industrial wastes
discharged to the sanitary sewer, including requirements for pretreatment
and/or flow equalization facilities.
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(c)
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Compliance schedules.
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(d)
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Reporting requirements.
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(e)
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Management requirements and responsibilities.
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(f)
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Compliance with United States Environmental
Protection Agency general pretreatment requirements and any applicable
categorical pretreatment requirements.
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(g)
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Special conditions applicable to nondomestic
users on a case-by-case basis.
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(2)
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The terms and conditions of the permit may be
subject to modification and change by the Madison-Chatham Joint Meeting
during the life of the permit, as limitations or requirements as identified
in Section 12 of this Article are modified and changed. The nondomestic
user shall be informed of any proposed changes in his permit at least
30 days prior to the effective date of the change. Any changes or
new conditions in the permit shall include a reasonable time schedule
for compliance.
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Section 10. Suspension of sewerage discharge
permit.
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(1)
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The Superintendent of the Madison-Chatham Joint
Meeting may, without formal notice, suspend a sewerage discharge permit
for a period not to exceed 45 days when such suspension is necessary
in order to stop a discharge which reasonably appears to present an
imminent or substantial hazard to public health, safety or welfare
of persons.
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(2)
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The Superintendent of the Madison-Chatham Joint
Meeting may, after serving notice on the permittee and allowing the
permittee 72 hours to respond, suspend a sewerage discharge permit
for a period not to exceed 45 days when such suspension is necessary
in order to stop a discharge which presents or may present an endangerment
to the environment or which threatens to interfere with the operation
of the treatment plant.
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(3)
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Any nondomestic user notified of a suspension
of his sewer discharge permit shall immediately cease and desist the
discharge of all waste regulated by the permit. In the event of the
failure of the nondomestic user to comply with the suspension order,
the municipality in which such discharge is taking place shall, after
such determination by the Superintendent of the Madison-Chatham Joint
Meeting, prohibit and prevent such discharge.
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(4)
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Any suspended nondomestic user may file with
the Madison-Chatham Joint Meeting a request for a hearing. Such a
request shall not stay the suspension. In the event of such request,
the Operating Committee of the Madison-Chatham Joint Meeting shall,
within 30 days of the receipt of such request, hold a hearing on the
suspension and shall either confirm or revoke the action. Reasonable
notice of the hearing shall be given to the suspended user as provided
in Section 11 of this Article. At this hearing, the suspended user
may appear personally or through counsel, cross-examine witnesses
and present evidence on his own behalf.
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(5)
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In the event the Operating Committee of the
Madison-Chatham Joint Meeting fails to conduct a hearing within the
time set forth above or fails to make a determination within five
days after the close of the hearing, the order of suspension shall
be stayed until the determination is made either confirming or revoking
the action of the Superintendent of the Madison-Chatham Joint Meeting.
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(6)
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The Superintendent of the Madison-Chatham Joint
Meeting shall reinstate the sewerage discharge permit upon proof of
satisfactory compliance with all discharge requirements.
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Section 11. Revocation of a sewerage discharge
permit.
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(1)
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The Operating Committee of the Madison-Chatham
Joint Meeting may revoke a sewerage discharge permit if they find
that the user has demonstrated a refusal, inability or failure to
take reasonable steps to comply with any of the provisions of this
Article. No revocation shall be ordered until a hearing has been held
by the Operating Committee of the Madison-Chatham Joint Meeting where
the user shall have the right to be represented by counsel, cross-examine
witnesses and present evidence in his behalf. Notice of the hearing
shall be given to the user at least 15 days prior to the date of the
hearing, except that a hearing may be held on shorter notice if agreed
upon by the Operating Committee of the Madison-Chatham Joint Meeting
and the user.
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(2)
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Any nondomestic user whose sewer discharge permit
has been revoked shall immediately cease and desist all discharge
of waste regulated by the permit. The municipality in which such discharge
is taking place will disconnect or permanently block from the public
sewer the connection of any nondomestic user whose permit has been
revoked if such action is necessary to ensure compliance with the
order of revocation.
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Section 12. Prohibited wastes.
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(1)
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The sewage treatment and disposal plant is designed
for treatment and disposal of domestic sewage and is dependent largely
upon biological action for disposal of sewage and accordingly may
be adversely affected or rendered inoperative by industrial wastes
or other substances not present in normal domestic sewage.
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(2)
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The right to discharge such industrial wastes
will accordingly be granted by the Madison-Chatham Joint Meeting only
under the following conditions:
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(a)
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If, in the opinion of the Madison-Chatham Joint
Meeting, the data in the application indicates that the wastes can
be handled without difficulty by the sewage treatment works and are
not prohibited or restricted by this or any other applicable law or
regulation.
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(b)
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If the wastes, as discharged, continue to conform
to the quantity and quality set forth in the application.
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(c)
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If the wastes as discharged are found in continued
operation to have no adverse effect upon plant operation and are not
and do not become prohibited or restricted by this or any other applicable
law or regulation.
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(3)
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Under no circumstances shall substances within
the following classifications be discharged into any sewer or lateral
of any user:
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(a)
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Gasoline, naphtha, petroleum products or any
substance which may create an explosion hazard in the system.
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(b)
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Oils, fats or grease (except as may result from
household, hotel or restaurant operation) or any substance which may
solidify or become viscous between 32º F. and 150º F.
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(c)
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Surface or rain water from yards, areas, courts,
cellar drains or roofs.
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(d)
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Rubbish, ashes, cinders or garbage, except such
kitchen wastes as have been properly ground by devices approved by
the Madison-Chatham Joint Meeting.
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(e)
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Milk, brewery or distillery wastes in any form.
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(f)
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Any pollutant of such volume or strength which
may cause interference with the sewerage treatment facility.
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(g)
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Heat in any amount which may raise the influent
temperature above 40º C. or any liquid or vapor which has a temperature
greater than 65º C. at the point of discharge.
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(h)
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Any pollutant which has a pH greater than 9.0
or less than 5.0.
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(i)
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Any pollutant in amounts exceeding standards
promulgated by the United States Environmental Protection Agency or
New Jersey Department of Environmental Protection.
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(j)
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Any substance, in quality or quantity, hereafter
prohibited or restricted by this or any other applicable law or regulation.
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Section 13. Adoption of rules and regulations.
The Madison-Chatham Joint Meeting is hereby authorized to adopt such
reasonable rules and regulations not inconsistent with this Article
as it deems to be necessary and proper to implement and enforce the
provisions hereof and of any law, rule, regulation or order imposed
upon or affecting the operation of the Madison-Chatham Meeting, its
sewer works, licenses or permits and to promote the public health,
safety and welfare.
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Section 14. Fees. The Madison-Chatham Joint
Meeting is hereby authorized to fix and collect fees from applicants
and permittees to cover its administrative, inspection and monitoring
costs in carrying out the intent and purpose of this Article.
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Section 15. Inspections.
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(1)
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Employees of the Madison-Chatham Joint Meeting
or their designated representative bearing proper credentials may
enter upon the property or premises occupied by any user for the purpose
of:
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(a)
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Copying any records required to be kept pursuant
to the regulations or any sewer discharge permit.
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(b)
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Inspecting any user's plant facilities or monitoring
equipment.
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(c)
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Sampling any discharge of wastewater into the
treatment system.
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(2)
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Authorized Madison-Chatham Joint Meeting personnel
shall be granted immediate access to all facilities directly or indirectly
connected to the Joint Meeting treatment plant during normal working
hours and at such other times as may be necessary under emergency
conditions as determined by the Superintendent. All users shall provide
easy access to the facilities to be inspected and shall promptly remove
any obstruction which may exist therein upon the verbal or written
request of the Superintendent.
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Section 16. Enforcement.
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(1)
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Whenever it is determined by the Madison-Chatham
Joint Meeting that the discharge of any waste into the sewers or laterals
is injurious to the joint sewerage system or adversely affects sewerage
treatment, the municipality in which such discharge is taking place
shall, after such determination by said Madison-Chatham Joint Meeting,
prohibit and prevent such discharge.
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(2)
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In addition, in the event of violation of this
Article or any regulation adopted pursuant hereto, the Madison-Chatham
Joint Meeting shall have recourse to any and all remedies or causes
of actions permitted by law, including but not limited to the right
to institute an action in the Madison Borough Municipal Court or the
Chatham Borough Municipal Court, as the case may be, under their respective
ordinances or any other applicable law or regulation seeking the imposition
of fines and penalties and/or or an action in the Superior Court of
New Jersey seeking fines and penalties and/or an injunction or abatement
of any violation.
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ARTICLE VII
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Section 1. All sales, allocation or rendering
of sewerage service outside of the corporate limits of the municipalities,
parties to this contract, shall be done and performed only pursuant
to a contract in writing duly authorized by resolution of the parties
to this contract and entered into after such contract has been approved
by resolution of the Joint Meeting.
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Nothing herein contained shall affect any contract
or arrangement for rendering sewerage service outside of the corporate
limits of either municipality party hereto now in effect.
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Section 2. The parties to this contract hereby
further agree and provide that no assessment for benefits upon the
lands and real estate fronting upon or benefited by any joint improvement
or works constructed pursuant to this contract shall be made upon
application of the jointly contracting municipalities in Joint Meeting
or for the joint benefit of the contracting municipalities.
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ARTICLE VIII
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Section 1. In the event of a disagreement between
the municipalities in Joint Meeting or otherwise as to matters arising
under this contract, the matter shall be referred to a Board of Arbitration
consisting of three members. The governing bodies of the municipalities
shall select one member each, and the third member shall be selected
by the other two members so chosen by the municipalities. Said Board
of Arbitration shall consider and arbitrate the matters in dispute,
and the decision of a majority of said Board shall be binding upon
the municipalities. The cost of such arbitration, if any, shall be
borne equally by the parties hereto.
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Section 2. This contract shall continue in force
during the life of the sewage treatment and disposal plant as enlarged,
or as it may be enlarged in the future pursuant to appropriate action
by the Joint Meeting, and during the life of the new trunk sewer,
but in any event until December 31, 2008, unless abrogated by mutual
consent as evidenced by ordinances duly adopted by the governing bodies
of the municipalities which are parties hereto.
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Section 3. A municipality which shall be in
default in any payment or part thereof required to be made pursuant
to this contract shall pay interest on the amount so in default at
the rate of 6% per annum from the date when such payment or part thereof
shall have been due.
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Section 4. Whenever it is necessary for the
Secretary of the Joint Meeting to file any papers with the Clerk of
any municipality, the Secretary may effect such filing by causing
a copy of the papers to be mailed to the Clerk of the municipality,
but neither the failure of the Clerk of any municipality to receive
the same, nor the failure of the Secretary to so mail them, shall
relieve any municipality from its obligations thereunder.
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Section 5. This contract shall be construed
to supersede contracts heretofore entered into by the parties hereto
dated August 29, 1910, January 2, 1929, July 10, 1950, and November
7, 1968, to the extent of inconsistencies in said contracts.
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Section 6. If any section or provision of this
contract shall be declared to be illegal or ineffective in whole or
in part by any court of competent jurisdiction, then, to the extent
that it is not so adjudged illegal or is not ineffective, it shall
be valid and effective, and no other section or provision of this
contract shall on account thereof be deemed illegal or ineffective
or affect or prejudice in any way its applicability or validity in
any instance or under any circumstances.
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Section 7. The parties hereby agree to jointly
maintain and operate said trunk sewers and said sewage treatment and
disposal plant for their joint benefit in such a manner as will render
the most efficient service to said parties and to each of them and
to that end to keep the said system of sewage in good repair and effective
operation and to make all necessary alterations, additions, enlargements
and improvements thereto and therein as the needs of the said parties
and each of them may from time to time require.
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The costs, expenses and other liabilities incurred
in connection with or resulting from any alterations, additions, enlargements
or improvements of plant or trunk sewers which may hereafter be made
shall be divided between and paid by the municipalities which are
parties to this contract in accordance with the estimated percentage
of the cost of maintenance and operation of the trunk sewers or sewage
treatment and disposal plant respectively to be borne by each municipality
for the year in which the improvement is made. If it shall be necessary
for any municipality to issue its bonds or notes for the purpose of
financing its share of the cost of such alteration, addition, enlargement
or improvement, an adjustment of debt service cost shall be made as
provided in Article IV of this contract and in the manner therein
provided with reference to whether the alterations, addition, enlargement
or improvement shall have been made to the sewage treatment and disposal
plant or to the joint sewers until such time as all bonds issued by
both municipalities shall have been paid.
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IN WITNESS WHEREOF, the municipalities have
caused their respective names to be signed hereto by their respective
Mayors, and their respective Corporate Seals to be hereunto affixed
and to be attested by their respective Clerks, on the day and year
first above written on three counterparts.
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THE BOROUGH OF MADISON
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(SEAL)
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ATTEST:
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MAYOR
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BOROUGH CLERK
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THE BOROUGH OF CHATHAM
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(SEAL)
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ATTEST:
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MAYOR
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BOROUGH CLERK
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