Approve the agreement between the City and Prenco Company for the operation of the Soluble Waste Disposal Facility at the Wastewater Treatment Plant

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AGREEMENT F'OR MAIN`1'ENANCE AND OPERATION OF T IE SOLUBLE OIL DISPOSAL FACILI`T'Y This agreement made �% 1978, between the City of South Bend, A Municipal Corporation and owner of the Soluble Oil Disposal Facility, hereinafter known as the City and Prenco, Inc., A Delaware Corporation, hereinafter known as the Contractor, for the maintenance and operation of the Soluble Oil Disposal Facility in accordance with applicable state and federal air and water pol- lution codes. 1. The Contractor agrees to place in operating condition the present Prenco system and to operate said system in accordance with provisions as hereinafter described. 2. The Contractor will replace the present refractory, which cost of replacement is estimated at $37,500.00 plus cost of shipping and on -site installation and said cost of same is to be the respon- sibility of the Contractor. 3. The Contractor further proposes to install a back -up unit Prenco system to insure the continuous operation of the facility. The estimated cost of said equipment j�: $17:,,000.00, which will be the responsibility of Contractor. 4. It is understood and agreed that if the City for whatever reason after one (1) year from the date of this agreement determines in its best interest to terminate this agreement, then it is agreed that the Contractor will remove the back -up system and auxiliary equipment within six (6) months after notice of termination is given in writing to the Contractor. 5. It is understood and agreed that the present Prenco system known as the Soluble Oil Disposal Facility will remain the property of the City and will include all repairs and improvements made to said existing equipment. 6. It is understood and agreed that the City will have an op- tion for a period of ten (1C) years within which to purchase the b-:c! -- LIP system and auxiliary equipment at the original installation cost, less ten (10 %) per cent per annum during the ten y`ar option period and it is agreed ttiat tho baA -up system will l�ccc: c, th e sc�.lc, of the City after a period of ten years of operation by the at no cost to the City. (1)