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Home My WebLink AboutAddendum No 2 to Master Agreement - St. Joseph Regional Water & Sewer District - Sanitary Sewer Service to Carriage Hills Subdivision1316 COUNTY -CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND. INDIANA 46601-1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR BOARD OF PUBLIC WORKS March 28, 2017 Barry Skalski St. Joseph County Regional Water & Sewer District 227 W Jefferson Blvd., Suite 732 South Bend, IN 46601 RE: Addendum No. 2 to Master Agreement Dear Mr. Skalski: PHONE 574/235-9251 FAX 574/235-9171 The Board of Public Works, at its meeting held on March 28, 2017, approved the above referenced agreement to provide sanitary sewer service to the Carriage Hills Subdivision. Enclosed please find the original of the addendum for your signature. Please sign and return the original agreement to our office and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, Linda M. Martin, Clerk Enclosure c: Kara Boyles, Engineering GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMEs A. MUELLER THERESE J. DORAU ADDENDUM NO.2 111111FINIFH F1.1 FI ED I, It,I TO THE MASTER AGREEMENT BY AND BETWEEN THE ST. JOSEPH COUNTY REGIONAL. WATER & SEWER DISTRICT, AND THE CITY OF SOUTH BEND, INDIANA Project Name: CARRIAGE HILLS SUBDIVISION SUB -DISTRICT Date: March j , 2017 (Application to each service area project by exhibits approved by respective boards) THIS PROJECT ADDENDUM NO. 2 is mutually agreed to and made effective the a day of March 2017 (the "Effective Date"), by and between the St. Joseph County Regional Water & Sewer District (the "District'), and the City of South Bend, Indiana acting by and through its Board of Public Works ("South Bend"). RECITALS WHEREAS, THE MASTER AGREEMENT BY AND BETWEEN THE ST. JOSEPH COUNTY REGIONAL WATER & SEWER DISTRICT, AND THE CITY OF SOUTH BEND, INDIANA, dated effective August 12, 20t0, and amended pursuant to that First Amendment to the Master Agreement, dated effective February 14, 2017 (as amended, the "Master Agreement'), specifically allows for Project Addendums, as set forth therein, to define and address certain project specific issues; and WHEREAS, the District desires to facilitate the connection to sanitary sewers of certain real properties within or contiguous to the Carriage Hills Subdivision, as set forth in the Project Area Boundary Map as shown in Exhibit "A" ("Project Area); and WHEREAS, the District has applied for and a loan through the United States Department of Agriculture Rural Development Loan Program (the "USDA") to facilitate the cost of construction of a wastewater collection system (the "System"); and WHEREAS, the District desires to immediately facilitate the connection to sanitary sewers of certain real properties, as shown in Exhibit `B" ("Map of Initial Users") that are within the Project Area; and WHEREAS, South Bend has a wastewater facility near the Project Area and said facility has sufficient capacity to serve the Project Area; and WHEREAS, South Bend is agreeable to accepting wastewater from the District and this Project Area and to process and dispose of same; and WHEREAS, the USDA requires the District have a contract with South Bend to provide wastewater treatment. NOW, THEREFORE, in consideration of the mutual promises and obligations in the Master Agreement and this Project Addendum No. 2, the adequacy of which is hereby acknowledged, the Parties agree as follows: I. AGREEMENTS OF THE PARTIES. A) The District, upon receiving funds from the USDA will design and construct a wastewater collection system within the Project Area which shall be adequate to service those properties within the Project Area. B) South Bend agrees to accept District as a contract customer for the purpose of providing sanitary sewer service to the District's customers within the Project Area within the Carriage Hills Subdivision Sub -District (the "Sub - District"). C) The District has determined there are no industrial users in this Sub -District, therefore the District will not be required to adopt and manage a pretreatment program as set forth in paragraph B.v.l. of the Master Agreement. If an industrial user does request to connect to the system within the Sub -District in the future, the District will comply with the terms of paragraph B.v.I. prior to allowing the industrial user to connect to the system. D) All users not already current water user customers of South Bend will be required to have water and or well -water meters to measure their domestic water usage. Further, the meter shall meet the current specifications of South Bend and include a "remote read" feature. E) South Bend reserves the right to review the District's plans for its initial phase of the System to serve the immediate users and determine and approve the plans as acceptable for connection to the South Bend collection and treatment system. F) The District will require that the sanitary sewer system be designed and constructed pursuant to the IDEM permit issued for the project. G) The District has adopted a sewer use ordinance, a copy of which has been provided to South Bend. Upon the request of South Bend, the District 2 agrees to amend its sewer use ordinance to be consistent with South Bend's existing sewer use ordinance. H) South Bend will operate, maintain and monitor, and repair the System and address all emergency response calls as well as provide utility locate services (currently known as Indiana811.) South Bend will properly report and document any release or backup to the Indiana Department of Environmental Management, and/or other agencies as required, any conditions related to the System that are in violation of federal, state or local laws or regulations, including, without limitation, unauthorized discharges, releases, or overflows from the collection system. South Bend shall concurrently provide to the District a copy of any reports submitted hereunder. I) South Bend will charge and collect from each residential customer within the Sub -District a monthly rate equal to the then current standard monthly rate charged by South Bend to each residential customer located within South Bend plus all charges owed to the District by such customer, including without limitation the amount due to the USDA for debt service and all administrative fees and expenses as may be established in accordance with a rate ordinance adopted by the District in connection with the Sub -District, as amended from time to time, less a credit equal to an amount as established by the formula set forth in and attached hereto as Exhibit "C". J) Upon payment of the debt service to the USDA. the District shall transfer ownership of the System to South Bend for One and 00/100 Dollar ($1.00). Upon transfer of the System to South Bend, South Bend agrees that it shall charge each retail customer served within the Sub -District at a rate that is not greater than the rate charged by South Bend to any other residential customer located within St. Joseph County. Until such time as transfer is made to South Bend, the customers shall be customers of the District. IC) South Bend agrees to obtain usage information (meter readings) from all the users within the Project Area and on a not less than annual basis provide such usage information to the District, including a detail of the usage information for each user in the Project Area. L) The capital buy -in referenced in Exhibit "C" attached hereto contemplates and includes any amounts owed to South Bend for connection to the South Bend's sewer system as outlined in South Bend Ordinance Section 17-79 et seq. 3 II. MISCELLANEOUS PROVISIONS. A. Recordation. This Project Addendum to the Master Agreement shall be recorded by South Bend in the Office of the Recorder for St. Joseph County, Indiana. B. Detined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to them in the Master Agreement. IN WITNESS WHEREOF, the Parties hereto have caused this Master Agreement to be executed as of the day and year first above written. Date: March _, 2017 ST. JOSEPH COUNTY REGIONAL WATER & SEWER DISTRICT gnature Prtn(e ame an T(( e Date: Marchd P 2017 CITY OF SOUTH BEND, INDIANA Printed Name and Tit Beard of Pumic Works u�P 1 1 Y igna(ure rinte ame an it e ATTEST __ --�� Gl"4 ' Lure 1 Prmte ameand7iNe EXHIBIT B a` ED 0 30 n 0 11 35 �4tri _�42 r� {'ylti� a C� El Exist. san. sewer, typ. tro er rou 550 Union St. I Mishawaka, IN 46544 D 574.259.99761troyergroup.corn� u r Together, We Yl� * 17928, 17944, 17866, 17822, 17784, 17768, 17748 already served by sewer per SB Utility t A, .ots to connect to sewer main 159 ,ots to connect to exist. main* 12 'Carriage Hills "House r Count Revised 2017-03-13 � (��r`�� /� �� IIII (� EXHIBIT C II�AWI?ilk U�AU H. J. Umbaugh 2 Associates canned Public Accountants. LLP 11211 Avenue Suite C Mishawaka, IN 46544 Phone: 574 935 5178 October 21, 2015 Fax: 574-935-5928 www.umbaugb.com Mr. Eric C. Horvath, Director Ms. Kara M. Boyles City of South Bend 1316 County -City Building South Bend, Indiana 46601 Re: South Bend (Indiana) Municipal Wastewater Utility - Carriage Hills Customer Bill Calculation Dear Eric and Kara: Below is a table calculating proposed monthly Carriage Hills sewage bills at various flow levels. The calculation includes a monthly credit for the assumed collection system asset net value remaining after the proposed Rural Development Bonds are retired. Additional detail for the calculation is provided in the footnotes below. Gross Net Monthly South Bend Debt Monthly Less: Monthly Flow Retail Rates Service DSR Bill Credit Bill (in gallons) (1) (2) (2) (3) 3,000 $41.16 $66.67 $6.67 $114.50 ($18.45) $ 96.05 5,000 48.67 66.67 6.67 122.01 (18.45) 103.56 9,000 63.70 66.67 6.67 137.04 (18.45) 118.59 (1) Effective I 7 I i2016 (2) Proposed Carriage Hills Debt Service $140,000 Proposed Debt Service Reserve $14,000 Divided by Carriage Hills customer count - 175 - 175 Subtotal $800 $80 Divided by 12 months - 12 12 Monthly charge $66.67 r $6.67 Based on $3,100,000 Bond amortized at 3.25%. over 40 years (Rural Development). pP Assumes the debt service reserve is funded over 10 years. (3) Asset original value $3,100,000 Divided by asset useful life (years) 80 Subtotal 1$38,750 Multiplied by bond life (years) x 40 Net value of asset remaining $1,550,000 Divided by Carriage Hills customer count - 775 Net value per customer $8,857.14 Divided by number of monthly bills (40 years + 12 months) - 480 Monthly credit per customer $18.45 1e" Per information provided by Bume Miller on 10/21/2015. If you have any questions, please feel free to contact John Julien or myself. Very truly yours, UMBA�UGs Eric EJW:jb Date Name BPW Date BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM 3/20/17 Kara M. Boyles 3/28/17 Department Engineering Division/Bureau DPW Phone Extension 5933 Required Prior to Submittal to Board Legal ® Attorney Name: M. Schmidt Controller El greater review is required for all Contracts $5,000.00 or more and greater than one year in length per the City Purchasing Policy Purchasing ❑ Agreement Professional Services Bid Opening Quote Opening Change Order No. _ Ease/Encroach. Other: Company or Vendor Name Proposal ❑ Resolution Addendum ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet ❑ Quote Award ❑ C/O & PCA No. ❑ PCA ❑ Traffic Control: New Vendor MBE/WBE Contractor MBE/WBE Contractor Requested Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Amount of Increase Decrease Previous Amount Current Percent of Change: New Amount Total Percent of Chanae: Copy Original ❑ ❑ ❑ ❑ ❑ ❑ Required Information St. Joseph County Regional Water and Sewer District U Yes 0 No U If Yes, Approved by Purchasing ❑ MBE U WBE ® No ❑ Yes Name of Company n/a Addendum No. 2 Carriage Hills Subdivision Sub -District N/A N/A N/A District to become a customer and provide sanitary sewer service to their customers within Carriage Hills subdivision. U Required Contractor's Certification Forms Attached (Non - Collusion, Non -Discrimination, Non -Debarment, E-Verify, Iran, etc.) For Chanqe Orders O