This contract, made this _____ day of __________, 19___, by and between the City of ____________ (hereinafter sometimes referred to as the "city"), a home rule city incorporated under the provisions of Public Act 279 of 1909, as amended, party of the first part, and the Charter Township of ____________ (hereinafter sometimes referred to as the "township"), a charter township incorporated under the provisions of Public Act 359 of 1947, as amended, party of the second part, both of which public corporations are located in the County of ____________ and State of Michigan.

WITNESSETH:
Whereas, the city is now operating a sewage disposal system within its corporate limits; and

Whereas, the city intends to construct an expanded and enlarged sewage treatment facility capable of permitting the treatment of sanitary sewage from both the city and the township; and

Whereas, the electors of the township have approved the issuance of bonds in the principal sum of ___________ ($______) for the purpose of constructing intercepting sewers to convey sanitary sewage from various parts of the township to the ____________ sewers at or near its city limits; and

Whereas, the township contemplates the construction of lateral sewers which will pick up the sanitary sewage from individual properties and convey the same to the said township intercepting sewers; and

Whereas, the treatment of the sanitary sewage from both the city and the township at the city treatment plant will be beneficial to both units of government from both an economical and a health standpoint;

Therefore, it is agreed by and between the parties hereto as follows:

1. The city agrees to acquire, finance, maintain and operate all property, facilities and equipment necessary to treat the sanitary sewage originating in said City of ____________ and also in said Township of ____________, provided the amount of sewage to be treated from the township shall not exceed an annual average of _____ gallons per day or such larger amount as the township may be entitled to under the terms of this contract by reason of its acquiring a greater capacity in the treatment plant; provided that the city agrees during periods in which the city is not using its portion of the treatment plant, it will treat additional sewage from the township to the extent of such unused capacity with the understanding, however, that such additional temporary treatment shall not give to the township any permanent rights thereto.

The city shall keep a full record of the cost of such operation, which cost shall consist of the following:

a. administrative expense chargeable to sewage treatment

b. salaries for supervisory personnel and labor at treatment plant, including FICA payments, pension costs or any additional fringe benefits granted to said personnel

c. cost of electric energy at treatment plant

d. cost of fuel used at treatment plant

e. cost of chemicals for treatment and testing sewage

f. rental of equipment for operation and maintenance of treatment plant

g. treatment plant equipment operation and maintenance expenses

h. insurance expenses

i. incidental expenses incurred in plant operation and maintenance

j. costs of maintenance (but not major replacements) of the city interceptor during the period it is used by township for transportation of sewage originating in the township.

k. capital costs allocated as follows: The township shall pay to the city periodically, either monthly or quarterly as shall be fixed by the city, its portion of the said operating cost based upon that percentage which the sewage treated from ____________ Township bears to the total sewage treated from both the city and the township. It is understood that because of bookkeeping requirements, the amounts of such periodical payments will be approximate and that adjustments to the actual cost will be made yearly. The city records in respect to the operation of its treatment plant shall be open for inspection of the township.

2. The points to which the township may connect with the city's sewers shall be as follows:

To determine the flow of sewage from the township into the city sewers, the township shall install a master sewage meter at the junction of ____________ Road and ____________ Road and at ____________ Road. No sewage meter shall be required for the connection at ____________ Road and ____________ Avenue so long as such connection services a limited number of buildings but the city shall establish an equitable means of estimating the sewage flowage at that point. Whether or not meters shall be installed at other points of connection shall be determined by the parties at the time such connections are agreed upon.

Where township sanitary sewage is transported through city interceptor sewers other than the __________ interceptor and the interceptor referred to in paragraph 4 hereof, the township shall purchase transportation rights in such interceptor sewers at a price to be determined by applying the original cost of such intercepting sewer or intercepting sewers a percentage to be arrived at by dividing the amount of transportation purchased by the total capacity of the sewer, measured in cubic feet per second. Such purchase price including ___ percent (%) interest on any unpaid balance shall be paid to the city by the township on the basis of one-thirtieth (1/30th) or more of the total purchase price in each calendar year hereafter until paid in full.

3. The city agrees to make such improvements, enlargements, and extensions to the city's existing treatment plant as may be necessary to treat the sewage from both the city and the township, or to construct an entirely new treatment plant for said purpose. At that time, the city and township shall each determine its maximum capacity requirements in the treatment plant for the next fifteen (15) years or such other length of time as may be agreed on by the parties. Thereupon the city shall proceed to construct and finance such new plant or such improvements, enlargements and extensions to the now existing plant, as will take care of the said requirements of the city and township. If a new plant will be constructed, then the cost thereof shall be borne by the city and township in proportion to their said respective total requirements in the plant. In the event that improvements, enlargements and extensions shall be made to the existing plant, then the cost thereof shall be borne by the city and township in proportion to the respective requirements for such improvements, enlargements and extensions and for the purpose of computing the requirements of each in such improvements, enlargements and extensions, it shall be assumed that the city is entitled to ____ million gallons per day capacity in the present plant and that the township is entitled to no capacity therein. The above provisions shall also apply when improvements, enlargements and extensions are made to any new plant hereafter constructed except that the requirements of the city and township in such improvements, enlargements and extensions shall be those over and above their respective capacities in the then existing plant. If such improvements, enlargements and extensions are required solely by one of the parties thereto, then the entire cost thereof shall be borne by such party.

The township shall pay to the city its proportion of the capital cost of the foregoing, or any part thereof, in cash or in annual installments over a period of thirty (30) years or such other period as may be mutually agreed upon, which annual installments shall bear interest payable semi-annually at the prime rate of interest in effect at the time of the capital expenditure by the city, the said prime rate to be that prescribed by the majority of the member banks of the clearing house of the City of New York. Provided, that if such cost is financed by the sale of bonds by the city then in lieu of the foregoing the township shall at least thirty (30) days before any principal and/or interest shall become due on such bonds, pay to the city that percentage thereof which represents its portion of the cost of the bond project. If such bonds are issued by the city, then they shall mature over a period of thirty (30) years or such other period as the parties may agree upon, the maturities such that, at least after the first five (5) years, the annual principal and interest charges will be reasonably equal.

4. The city agrees to extend prior to __________ its present interceptor sewer lying _________________ from its present terminus to _________________. The township shall have the right to connect its interceptor sewers to the city interceptor at that point and to discharge its sewage into said interceptor for conveyance to the treatment plant. When said city interceptor as so extended, is not sufficient to carry the sewage of both the township and the city, irrespective of whether or not the township's sewage has reached the ___ million gallon average daily maximum, the city agrees to construct a new interceptor along a route generally described as follows:

At the time of the construction of the new interceptor sewer described above, the city and township shall each determine the amount of interceptor capacity which the respective units shall utilize. Thereupon, the city shall proceed to construct and finance said interceptor, and the cost thereof shall be borne by the city and township in proportion to their respective requirements. If the entire capacity of the new interceptor is required by only one of the parties hereto, then the entire cost thereof shall be borne by such party.

The township shall make payments to the city to cover its portion of the cost of said interceptors in the manner provided in paragraph 3 above.

5. It is the intention of this agreement that the City of ____________ will be fully reimbursed for any expense which it may incur for operating expenses, including a reasonable overhead, in connection with providing sewage disposal services for the township but that it shall not be entitled to any profit therefrom.

6. Upon written request of the township, the city shall make application for, and shall take all steps necessary to qualify under any available federal and state aid programs applicable to the projects to be constructed hereunder, and shall utilize all funds received thereunder, if any, to reduce the cost of such projects. Any such request by the township shall specify under what federal statute and/or regulation aid is to be applied for.

7. If the City of ____________ should annex any part of the Township of ____________, then the township may elect either (1) to retain its then acquired capacity in any sewer, interceptor or treatment plant of the city; or (2) to surrender to the city any part of any such capacity attributable to the annexed territory. The maximum amount of capacity in any sewer, interceptor or treatment plant which the township may be permitted to so surrender, without the consent of the city, shall be that percentage of its total capacity therein determined by dividing the total number of gallons of sewage contributed by the customers in the annexed territory served by such sewer, interceptor or treatment plant by the total number of gallons of sewage contributed by township sewer customers so served, immediately prior to the effective date of annexation.

8. No sewage detrimental to the city's sewage disposal system or the public health or safety shall be discharged into the city's system by either the city or the township. Each, the city and the township, shall be responsible for the character of the sewage originating therein. If the sewage from either the city or township is such that it imposes an unreasonable burden upon the city's treatment plant, then the extra cost of treating such sewage shall be paid by such city or township.

9. The township agrees to inspect, read and maintain all sewage meters installed by the township and agrees to maintain an accurate record of all readings taken from said meters and keep such records available at all times for the city's inspection. The city shall have the right to inspect all township meters used in determining sewage disposal charges under this contract.

10. The cost of maintenance of city sewers and interceptors used jointly by the city and township shall be paid by each party in proportion to its respective use thereof.

11. Nothing in this contract shall be construed to deprive the city of its exclusive jurisdiction over the city's sewage disposal system, subject, however, to the rights of the township as herein provided.

12. This contract shall not be construed to mean that the city shall have any duty whatsoever to finance, repair, operate or maintain any sewer facilities located in the Charter Township of ____________.

13. This contract shall be in full force and effect for a period of fifty (50) years from the date hereof and shall insure to the benefit of and be binding upon the parties hereto, their successors and assigns. In negotiating any extension of this agreement, or modifications and amendments thereto, due consideration shall be given to the then present value of the contributions theretofore made by the city and the township to the treatment plant and the interceptor sewers covered by this agreement, as measured by the value of the several parts thereof in the total system's then state of existence.

Witnesses:

Charter Township of __________________________
By: ____________________________________________, Supervisor
By: ____________________________________________, Clerk

City of _________________________________________
______________________________________, Mayor
___________________________________________, Clerk

(Paragraph 5)
It is also agreed that this contract shall become null and void if the work specified has not been initiated prior to (date) , the township, at its sole option, may contract with a private contractor to perform the work and complete the project described herein. In the event this contract become null and void, all funds deposited by the township as provided herein, including any interest earned by said funds shall be immediately returned to the township.

In witness whereof, the parties hereto set their hands and seals.

_____________________________________ Township

Date _________________________________

_____________________________________ Supervisor

_________________________________Witness

_____________________________________ Clerk

_________________________________Witness

_____________________________________ County Road Commission

Date _________________________________

________________________________ Chairman

_________________________________Witness

___________________________Vice Chairman

_________________________________Witness

________________________________Member

_________________________________Witness