The annual charge for each fiscal year payable hereunder by Eatontown shall be the sum of the main sewer charge, the treatment plant charge and the operating charge for such fiscal year, each computed and determined as hereinafter provided in this chapter. Such annual charge shall be paid by Eatontown to the Authority in accordance with § 264-14, for and with respect to every fiscal year or part thereof beginning with the fiscal year in which is given the written notice provided for in § 264-7.
A.
Main sewer charges are based upon annual debt service and Eatontown's agreed capacity allocation in Schedule B in the main sewers and shall be determined as provided in this section.
B.
For the purpose of computing the main sewer charge for each fiscal year, there shall first be ascertained as of the beginning of such fiscal year the several amounts of the direct construction cost of the main sewers and of each sewer reach available for Eatontown. For the same purpose, there shall then be separately determined Eatontown's share of the direct construction cost of each such sewer reach by multiplying the direct construction cost of such sewer ascertained as above provided, by Eatontown's agreed capacity allocation therein (expressed as a percentage of the total design capacity of such sewer reach) The sewer reaches available for Eatontown, Eatontown's agreed capacity allocation therein and the total design capacity thereof shall be respectively as set forth in Schedule B annexed hereto and by this reference made a part hereof. The total of the amounts of Eatontown's share of direct construction costs for each sewer reach shall be Eatontown's share of the direct construction cost of the main sewers.
C.
For each fiscal year, there shall be computed, for each bond issue for any project which includes any main sewer or sewers, the portion of annual debt service attributable to main sewers, by:
D.
For each fiscal year, the main sewer charge shall be determined by multiplying, for each bond issue, the annual debt service for such fiscal year attributable to main sewers, determined as provided in Subsection C next above, by a fraction of which:
E.
In the event that in any fiscal year the volume of sewage or other wastes delivered or discharged by Eatontown into the system shall be in excess of the annual limitation set forth in Schedule A, the main sewer charge for such fiscal year, computed as hereinabove provided, shall be increased by a surcharge for such excess volume. The surcharge for any such excess volume occurring in any fiscal year and so to be added to and become part of the main sewer charge for such fiscal year shall be in each instance the amount ascertained by multiplying the amount of the main sewer charge for such fiscal year (determined without giving effect to this subsection) by a fraction of which the numerator is the number of gallons of excess of the annual limitation and the denominator is the annual limitation set forth in Schedule A.
F.
Notwithstanding the payment of any charge or surcharge in accordance with this Article IV, the Authority, upon written notice to Eatontown, may require Eatontown to limit the volume of sewage or other wastes discharged by Eatontown into the system in excess of the limitation set forth in Schedule A, when:
(1)
Such volume has caused damage or extraordinary expense to the Authority; or
(2)
Such volume, in more than one twenty-four-hour period within any period of five consecutive years, has exceeded the daily or hourly limitations set forth in Schedule A; or
(3)
Such volume has exceeded for a period of 12 months the yearly limitation set forth in Schedule A.
It is understood and agreed that failure by Eatontown to make provisions for limiting its flow after written notice so to do shall be cause for the Authority to construct additional facilities for handling such excess flow as well as flows which may reasonably be expected in the future and to charge Eatontown the costs thereof. |
G.
In the event the United States of America on behalf of Fort Monmouth and Camp Charles Wood (herein collectively called "Fort Monmouth") has not entered into an agreement with the Authority in substantially the same form as this Agreement at or prior to the date hereof, there shall be added to the main sewer charge of Eatontown an additional charge to be determined as follows:
(1)
The amount that would be attributable to Fort Monmouth as a main sewer charge shall be computed in accordance with this § 264-10;
(2)
For the fiscal year for which the aforesaid amount is computed, there shall be deducted from the aforesaid amount a sum equal to the amount, if any, received from the County of Monmouth for the purpose of defraying the main sewer charge attributable to Fort Monmouth, or added to the aforesaid amount a sum equal to the amount paid to the County of Monmouth in repayment of sums loaned by said county to the Authority for said purpose;
(3)
A portion of the amount so determined shall be added to the main sewer charge of Eatontown, said portion to be computed by multiplying the amount so determined by a fraction of which the numerator is Eatontown's share of the direct construction cost of the main sewers as computed in § 264-11B and the denominator is the direct construction cost of the main sewers minus Fort Monmouth's share of the direct construction cost of the main sewers.
In the event that the Authority subsequently agrees to accept and treat sewage originating within Fort Monmouth and amounts are received pursuant to such agreement which are attributable to the cost of constructing the main sewers referred to in Schedule B, such amounts shall be refunded to Eatontown by the Authority in amounts in proportion to, but not in excess of, amounts theretofore added to the main sewer charge and paid by Eatontown as provided above. |
A.
Treatment plant charges are based upon annual debt service and Eatontown's annual sewage flow and shall be determined as provided in this section.
B.
For the purpose of computing the treatment plant charge for each fiscal year, there shall first be computed, for each bond issue for any project which includes any part of the treatment plant, the portion of annual debt service attributable to the treatment plant, by:
(1)
Ascertaining the amount of annual debt service for such fiscal year with respect to such bond issue; and
C.
For each fiscal year, the treatment plant charge shall be determined by multiplying, for each bond issue, the annual debt service for such fiscal year attributable to the treatment plant, determined as provided in Subsection B next above, by a fraction of which:
(1)
The numerator is the volume of sewage originating in the territory of Eatontown received into the system during such fiscal year; and
(2)
The denominator is the total volume of sewage received into the system during such fiscal year minus the actual volume (not to exceed the agreed share of treatment plant capacity) of any participant who has provided for payment in advance of its share of the treatment plant net construction cost in accordance with the terms of § 264-15; provided, however:
(a)
That the volume of sewage originating in the district received during each calendar month into the system during the first 12 full months in which the system is in operation shall for all purposes of this subsection be not less than 83,330,000 gallons; and
(b)
That the volume of sewage originating in the territory of Eatontown received during each calendar month into the system shall for all purposes of this subsection be not less than the monthly minimum number of gallons set forth in Schedule A.
The amount, or the sum of the several amounts, so determined, shall be the treatment plant charge for such fiscal year. |
A.
Operating charges are based upon adjusted operating expense and Eatontown's annual sewage flow and shall be determined as provided in this section.
B.
For the purpose of computing the operating charge for each fiscal year, there shall first be ascertained the adjusted operating expense for such fiscal year, which shall be the sum of money equal to the excess of the total of the following items of expense over the total of the following items of deduction:
(1)
Items of expense: All of the amounts paid or obligations incurred by the Authority during said fiscal year for the operation and maintenance of the system, including (without limitation of the foregoing) insurance, repairs, renewals and replacements and improvements of a minor nature and the reserves for expenses of such operation and maintenance deemed necessary or desirable by the Authority.
(2)
Items of deduction: Such of the items of expense with respect to said fiscal year and referred to in Subsection B(1) next above as the Authority shall reasonably determine are attributable to operation and maintenance of the collecting sewers or are provided for by reserves, and the amounts of any reserves referred to in Subsection B(1) above which in the next previous fiscal year were applied to any purposes except those purposes for which said reserves were established.
C.
For each fiscal year, the operating charge shall be determined by multiplying the adjusted operating expense for such fiscal year, determined as provided in Subsection B next above, by a fraction of which:
(1)
The numerator is the volume of sewage originating in the territory of Eatontown received into the system during such fiscal year; and
(2)
The denominator is the total volume of sewage received into the system during such fiscal year; provided, however:
(a)
That the volume of sewage originating in the district received during each calendar month system is in operation, for all purposes of this subsection, shall be not less than 83,330,000 gallons; and
(b)
That the volume of sewage originating in the territory of Eatontown received during each calendar month into the system, for all purposes of this subsection, shall not be less than the monthly minimum number of gallons set forth in Schedule A.
The amount so determined shall be the operating charge for such fiscal year. |
A.
For all purposes of this Agreement, when used with respect to any particular sanitation facility or facilities, "net construction cost" means the sum of money equal to the excess of the total of the following items of expense over the total of the following items of deduction:
(1)
Items of expense: All of the amounts paid, provided or incurred by the Authority with respect to said facility or facilities, provided from sources other than revenue, for:
(a)
Real estate cost, which is all costs of acquisition of real property and interests in lands, including survey, appraisal, legal and other fees, awards and any other expenses in connection therewith;
(b)
Direct construction cost, which is all costs of construction, acquisitions not mentioned above, and installation, and for labor, contractors, builders and materialmen, and for sewers, machinery, materials, conveyances and equipment, together with all such other expenses in connection there with not mentioned above, including demolition or relocation costs, professional fees and expenses not elsewhere mentioned in this subsection, damages and insurance or bond premiums, as the Authority may reasonably determine to be part of such costs;
(c)
Engineering cost, which is all fees and expenses for engineering services, including surveys not mentioned above, estimates, design, borings and tests, and supervision of construction;
(d)
Start-up cost, which is all administrative costs, initial operating expenses and working capital; and
(e)
Financial cost, which is all financing expenses, including discount on bonds, interest during construction, reserves for payment or security of bonds, printing and advertising, and accounting, fiduciary, advisory and legal fees and expenses not mentioned above.
(2)
Items of deduction: Such parts of the following amounts received by the Authority as may properly have been applied or be applicable in accordance with law and the Authority's agreements with or for the benefit of others to pay or provide for items of expense, with respect to said facility or facilities, referred to in Subsection A(1) next above, or to repay borrowed moneys applied to such items of expense:
(a)
Grants or contributions from the United States of America, the State of New Jersey or the County of Monmouth, New Jersey; and
(b)
Other payments from the United States of America or any agency thereof or from any other person not under any circumstances repayable by the Authority; and
(c)
Available moneys from any other source, except revenue or proceeds of bonds.
B.
For all purposes of this article and notwithstanding the terms of Subsection A next above:
(1)
The start-up cost of the main sewers shall be computed and fixed as 25% of the start-up cost of the system, and the start-up cost of the treatment plant shall be computed as 50% of the start-up cost of the system.
(2)
The engineering cost of any main sewer or the treatment plant shall be computed and fixed by multiplying the engineering cost of any project which includes said main sewer or the treatment plant by a fraction of which:
(3)
The financial cost of any main sewer or the treatment plant shall be computed or fixed by multiplying the financial cost of any project which includes said main sewer or the treatment plant by a fraction of which:
(a)
The numerator is the net construction cost (computed without giving effect to items of financial cost or items of deduction applicable thereto) of said main sewer or the treatment plant, as the case may be; and
(b)
The denominator is the net construction cost (computed without giving effect to items of financial cost or items of deduction applicable thereto) of said project.
A.
At or about the time in any fiscal year of giving the written notice to Eatontown provided for in § 264-7, and on or before November 25 in each fiscal year thereafter, the Authority shall make an estimate of the amount of the annual charge for such fiscal year, and make and deliver to Eatontown its certificate signed by an Authority Officer stating such estimated amount of such annual charge for such fiscal year.
B.
Eatontown shall pay to the Authority the estimated amount of the annual charge stated in the certificate delivered to it in each fiscal year by the Authority as aforesaid, in equal installments on or before January 15, April 15, July 15 and October 15 of such fiscal year (or so many of said dates as remain in such fiscal year after the date of delivery of said certificate).
C.
On or before November 25 next following the close of each fiscal year ending after the giving of written notice to Eatontown as provided in § 264-7, the Authority shall make and deliver to Eatontown its certificate signed by an Authority Officer stating the amount of the annual charge for said fiscal year determined as provided in this article, and the part (if any) of such annual charge not previously paid to the Authority by Eatontown pursuant to and in accordance with Subsection B next above, and on or before January 15 next ensuing, Eatontown shall pay to the Authority the unpaid part of any annual charge so stated in such certificate. The annual charge payable by Eatontown for each fiscal year shall at all events be due and payable not later than January 15 next following the close of such fiscal year, but current provision for and payment of all such annual charges on an estimated basis shall be made by Eatontown in accordance with the foregoing subsections of this section. In the event that the amount of the annual charge made and charged by the Authority to and payable by Eatontown for said fiscal year determined as provided in this article shall be less than the estimated amount of such annual charge stated in the certificate delivered in such fiscal year to it by the Authority and paid by it to the Authority, the Authority shall give credit for the difference between said amounts to Eatontown on the first payment or payments thereafter becoming payable by Eatontown hereunder.
D.
In the event that there shall be default in the payment of any item of revenue (other than a service charge, as defined in the act, made to the owner or occupant of real property) payable to the Authority by any person (other than a participant) delivering and discharging sewage into the system, and such default shall continue until the first day of the second fiscal year beginning after the date of such default, the annual charge for such second fiscal year, determined as hereinabove provided, shall be increased by a share of the amount of such default remaining on said first day. Said share so to be added to and become part of said annual charge payable by Eatontown shall be determined by multiplying said remaining amount of such default by a fraction of which the numerator is the volume of sewage originating in the territory of Eatontown received into the system during the next preceding fiscal year, and the denominator is the total volume of sewage received into the system during such next preceding fiscal year. If and when any amount of such default, together with interest, if any, shall be recovered by the Authority from the aforesaid person responsible therefor, a part of such amount proportionate to any share thereof added to and theretofore paid by Eatontown as part of said annual charge shall be refunded to Eatontown by the Authority.
E.
Eatontown shall in each year make all budgetary, emergency and other provisions or appropriations necessary to provide for and authorize the prompt payment by it to the Authority during each fiscal year of the estimated amount of the annual charge therefor and, by January 15 next ensuing, of the amount of the actual annual charge therefor, all as stated in the certificates delivered in or for such fiscal year to it by the Authority as aforesaid.
F.
The annual charge payable by Eatontown shall be calculated commencing with the earlier of the date on which Eatontown commences to discharge sewage into the system, or the date on which the system has been declared by the Authority to be ready to accept sewage of Eatontown and 30 days have expired after delivery to Eatontown of the written notice in accordance with § 264-7. Annual debt service accruing prior to the aforesaid date and adjusted operating expenses incurred prior to the aforesaid date shall not be included in the annual charge, except to the extent they are included in the determination of net construction costs pursuant to § 264-13.
A.
Eatontown may prepay its share of the net construction costs of the main sewers or the treatment plant, or both; provided that:
(1)
Within 45 days after the Authority serves Eatontown with a written estimate of the cost of prepayment, Eatontown delivers to the Authority a written notice of its intention to make prepayment setting forth the amount of such prepayment;
(2)
Eatontown makes such prepayments when and as required by the Authority to meet any periodic progress payments in respect of the construction of the main sewers and treatment plant, and in any event prior to the beginning of delivery and discharge into the system of sewage of Eatontown.
In the event that all net construction costs includible in Eatontown's share of net construction costs are not ascertained prior to the beginning of delivery and discharge into the system of sewage of Eatontown, and Eatontown has elected to prepay under this section, Eatontown's share of such unascertained net construction costs shall be payable by Eatontown upon written notice by the Authority of the amounts thereof. |
B.
To the extent that Eatontown prepays its share of the net construction costs, the main sewer charge or the treatment plant charge, or both, as the case may be, shall be eliminated from the annual charge to Eatontown.
C.
For the purpose of determining Eatontown's share of the net construction cost of the treatment plant, Eatontown and the Authority shall agree upon Eatontown's share of the treatment plant capacity. Eatontown's prepaid share shall then be determined by multiplying the net construction cost of the treatment plant by a fraction of which the numerator is the agreed share of capacity and the denominator is the total treatment plant design capacity. In the event that in any fiscal year the volume of sewage or other wastes delivered or discharged by Eatontown into the system shall be in excess of the agreed share of prepaid treatment plant capacity, Eatontown shall pay a treatment plant charge for such excess volume, to be computed in accordance with § 264-11.
In the event that the enlargement, reconstruction or extension of the system is required by virtue of revised policies of the State Department of Health or through other causes beyond the control of the Authority and not by excess flows from participants, municipalities named in § 264-28 or Eatontown, the annual charge may be increased by the Authority in such amount, to be determined in accordance with this Article IV, as will cover that portion of the debt service on a bond issue necessary for the work involved.
The Authority in its discretion may permit connections to the system at points other than the point or points of connection referred to in § 264-6 by persons within the boundaries of the territory of Eatontown; provided, however, that no such connections shall be made without the prior consent of Eatontown. Such persons shall be required to comply with all rules and regulations governing users within the district, and the Authority shall have the right to inspect and approve all such connections. Eatontown shall pay to the Authority, in addition to the annual charge, all fees and charges that such persons would be required to pay if they had been users within the district.