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HomeMy WebLinkAboutAddendum No 2 to Billing Services Agreement - Billing Services for Carriage Hills Project – St. Joseph County Regional Water & Sewer District1316 COUNTY -CITY BUILDING 227 W.JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS October 13, 2020 Ms. Jessica Clark St. Joseph County Regional Water & Sewer District RE: Addendum No. 2 to Billing Services Agreement Dear Ms. Clark: PHONE 574/235-9251 FAx 574/ 235-9171 The Board of Public Works, at its meeting held on October 13, 2020, approved the above referenced addendum to provide billing services for South Bend sewer connections for properties in Carriage Hills subdivision. Enclosed please find the original of the addendum for your signature. Please sign and return the original addendum to flz��ly(>�ct;;�z�;i� gc;;. Please retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, s/Linda M. Martin, Clerk Enclosure GARY A. GILOT ELIZABETH A. MARADIK THERESE J. DORAU JORDAN V. GATHERS JOSEPH R. MOLNAR BILLING SERVICES AGREEMENT (Carriage Hills Project) This AGREEMENT FOR BILLING SERVICES (the "Agreement"), is mutually agreed to and made effective as of the I" day of September, 2020, 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 (the "City") (each a "Parry" and collectively the "Parties"). RECITAL WHEREAS, the District and the City have previously entered into an Amended and Restated Master Agreement dated as of July 9, 2019 (the "Master Agreement") for the purposes of establishing the terms and conditions concerning provision, collection, treatment and disposal of water and sewage within the District's service areas, as well as terms and conditions related to certain improvements existing or planned at various locations in and adjacent to the South Bend water and wastewater facility planning areas; WHEREAS, in furtherance of the Master Agreement, on July 2019, the District and City entered into the Amended and Restated Project Addendum No. ("Project Addendum No. 2") to facilitate the connection to sanitary sewers of certain real properties within or contiguous to the Carriage Hills Subdivision Sub -District of the District (the "Sub -District"); WHEREAS, under Project Addendum No. 2, the City agreed to provide billing services, on behalf of the District, for each residential customer within the Sub -District, at the rates and in the amounts described in Project Addendum No. 2, as may be amended from time to time, as further defined herein; WHEREAS, the District has applied for 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") in the Sub -District; and WHEREAS, the District intends to issue revenue bonds of the District (the "Bonds") and USDA will purchase such Bonds to evidence a loan to the District payable over a period of forty (40) years for the purpose of making certain improvements within the Sub -District; NOW, THEREFORE, in consideration of the mutual promises and obligations in the Master Agreement, the Project Addendum No. 2, and this Agreement, the adequacy of which is hereby acknowledged, the Parties agree as follows: 1. BILLING SERVICES 1.1. Billing Functions and Responsibilities. The City shall be responsible for the preparation, delivery and processing of the Sub -District Rates and Charges for each residential customer within the Sub -District, including the receiving, depositing, posting and processing of customer payments to the appropriate account. 1.1.1. The City shall perform the billing described herein in accordance with its normal billing schedule and current practices and procedures, unless otherwise agreed to by the parties as set forth in this Agreement (the `Billing Cycle"). 1.1.2. At least thirty (30) days prior to the first Billing Cycle described below in Section 1.1.3, the District shall provide the name and address of each residential customer of the Sub -District to be billed, on behalf of the District, under this Agreement. Thereafter, the District shall be responsible for notifying the City, in writing, of any changes to such list of residential customers. The City agrees to make the District's requested changes within fifteen (15) days of notification by the District. 1.1.3. The first Billing Cycle shall occur by October 31 st, 2020. 1.1.4. Each billing shall display the Sub -District's Rates and Charges (as defined below) charged during the Billing Cycle, either individually or in the aggregate. 1.1.5. As a recipient of a federally assisted program related to the Bonds held by USDA, the District is required to include certain nondiscrimination language under the USDA's Departmental Regulation 4300-003 Equal Opportunity Public Notification Policy ("Nondiscrimination Statement"). The District shall provide the City with the minimum required Nondiscrimination Statement for inclusion on the bill, and the City shall use its best efforts to include the minimum required Nondiscrimination Statement. In the event the City is unable to include the minimum required Nondiscrimination Statement, it shall notify the District and the City shall have no further responsibility with respect to the Nondiscrimination Statement. The District shall be solely responsible for providing residential customers of the Sub -District a copy of the full Non -Discrimination Statement. 1.2. Sub -District Rates and Charges. The City will charge and collect from each residential customer within the Sub -District: (i) the then current standard monthly rate charged by the City to each of its residential customers within the Sub -District under Section 17-21 of the City Municipal Code, as may be amended from time to time, which rate is included in Ordinance No. 2019-01 adopted by the District on June 3, 2019 (the "District Rate Ordinance"), less a credit equal to an amount as established by the formula set forth in the District Rate Ordinance (collectively, the "City Treatment Rates and Charges"), plus (ii) all charges owed to the District by each of its residential customer within the Sub - District, including, without limitation, the amount due to USDA for principal and interest payable on the Bonds (the "Debt Service Rate") and all administrative fees and expenses established in the District Rate Ordinance or otherwise ("Additional Charges" and together with the Debt Service Charges, the "Sub -District Rates and Charges"), as may be amended from time to time. 1.3. Rate Increases. Sub -District Rates and Charges may be amended from time to time at the discretion of the District. If the City adopts an increase to the sewer rates described in Section 1.03(i) hereof, the District shall use its best efforts to immediately proceed to adopt an amendment W to the District Rate Ordinance. However, any increase in rates shall be based on the "just and equitable rates and charges" requirement under Indiana Code 13-26-11-8 and all other applicable requirements under Indiana Code 13-26. Not less than sixty (60) days prior to the effective date of any new rates, the District shall provide City with written notice of the proposed rates. The City shall meet with the District to review the rates and determine the first billing cycle in which the proposed rates shall be billed. 1.4. Application of Payments 1.4.1. Payment received by the City from residential customers of the Sub -District shall be applied according to the listed priority in the City's Municipal Utility Rules and Regulations, dated as of June 2019, adopted by the City's Board of Public Works ("Rules and Regulations"). 1.4.2. At such time the City transitions to new billing software, currently expected in October 2020, payments received by the residential customers of the Sub -District shall be applied on a pro rata basis. The City will promptly notify the District, in writing, the final effective date of the City's new billing software. 1.5. Delinquent Accounts, Shut -Offs, Terminations and Liens. 1.5.1.1. The District shall adopt a policy providing for the collection of delinquent Sub -District Rates and Charges consistent with the City's Rules and Regulations where applicable and in accordance with Indiana Code 13-26. 1.5.1.2. The City shall be responsible for collecting Sub -District Rates and Charges which remain unpaid for a period up to sixty (60) days past the Billing Cycle due date. Thereafter, the City shall immediately notify the District of any account which remains unpaid and the District shall be responsible for further collecting the unpaid account. 1.5.1.3. The City shall inform the District, in writing, within thirty (30) days of terminating an account for which Sub -District Rates and Charges remain unpaid. The District shall be responsible for collecting such unpaid accounts. 1.5.1.4. During the time the City collects on a delinquent account, the City may charge late payment charges, bad check charges and other delinquent payment charges in accordance with its Rules and Regulations. The City shall retain these charges as consideration for administering the collection of the Sub -District Rates and Charges. 1.5.1.5. The District shall be responsible for filing any liens against the property for past due Sub -District Rates and Charges. 1.6. Deposit of Sub -District Rates and Charges. Upon receipt of rates and charges described in paragraph 1.2 above, the City shall immediately deposit the Sub -District Rates and Charges in an account separate from City Treatment Rates and Revenues. Consistent with its duties and obligations under this Agreement, the City shall hold the Sub -District's Rates and Charges in trust for the District until such Sub -District Rates and Charges collected and deposited on behalf of the District are transferred to the District in the manner described below. 1.6.1.1.1. No later than the fifteenth (151h) Business Day (as defined herein) of each month, the City shall wire transfer Sub -District Rates and Charges collected and deposited in the prior calendar month to the District's designated bank account. "Business Day" shall mean any day other than a Saturday or Sunday, or a day on which commercial banks in the United States or the City is required or authorized by law to be closed. 1.6.1.1.2. No later than the fifteenth (151h) Business Day of each month, the City shall provide a detailed billing report of the Sub -District Rates and Charges collected and deposited in the prior calendar month. The detailed billing report, at a minimum, shall include (i) each residential customer billed Sub -District Rates and Charges, (ii) Sub -District Rates and Charges collected in the prior calendar month and (iii) uncollected Sub -District Rates and Charges, including an accounts receivable aging schedule. 1.6.1.1.3. The City may not utilize funds it holds on behalf or for the benefit of the District to set off or otherwise satisfy any debt owed by the District to the City. 1.7. Connections. The District shall notify the City at least sixty (60) days prior to connection to the City's existing sanitary sewer main at the connection points described in Project Addendum No. 2. Each sewer lateral connection shall be inspected by the City before and shall be in compliance with the City's Engineering Department standards and any other applicable local code before the connection is backfilled. 2. MISCELLANEOUS 2.1. Amendments. This Agreement can be amended only by written agreement executed and approved by both Parties, as applicable 2.2. Legal Compliance; Governing Law. The parties shall comply with all applicable federal, state and local laws, rules, regulations and ordinances, and all provisions required thereby to be included herein are hereby incorporated by reference. The enactment or modification of any applicable state or federal statute or the promulgation of rules or regulations after execution of this Agreement shall be reviewed by City and the District to determine whether the provisions of this Agreement require formal modification. This Agreement shall be construed in accordance with and governed by the laws of the State of Indiana; and venue for any action concerning this Agreement shall be brought in the courts of St. Joseph County, Indiana. 2.3. Entire Agreement. This Agreement sets forth the entire agreement between the parties and supersedes any and all prior agreements or understandings between them in any related to the subject matter of this Agreement. It is further understood and agreed that the terms and conditions of this Agreement are contractual and are not a mere recital and that there are no other agreements, understandings, contracts, or representations between the parties in any way related to the subject matter of this Agreement, except as expressly stated in this Agreement. il 2.4. Term and Renewal. This Agreement shall commence on the date set forth above, and shall remain in effect for a period of forty (40) years, unless terminated by: (i) either Parry on not less than ninety (90) days prior written notice; or (ii) sooner as otherwise agreed to by the parties; or (iii) as a result of any law, order, rule, regulation or determination of a court, regulatory agency or other body of competent jurisdiction permitting or requiring termination or a material modification of this Agreement. 2.5. Authority; Counterparts. Each undersigned person signing and delivering this Agreement on behalf of the parties, respectively, represents and warrants that he or she is duly authorized and fully empowered to sign and deliver this Agreement. The parties may execute this Agreement in separate counterparts, which taken together will constitute one original document. An electronically transmitted copy of a signature will be regarded as an original signature. 2.6. Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 2.7. Disputes. Each Parry agrees to reasonably assist the other Parry in the event any disputes arise between any Parry and any third parry arising out of this Agreement. In the event of a dispute between the District and the City and any third parry, the City and the District shall cooperate with each other to resolve and defend such dispute. 2.8. Assignment; Successors; No Third -Party Rim. No Parry may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other Parties. This Agreement will apply to, be binding in all respects upon and inure to the benefit of the successors and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give any person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. 2.9. Notices. Any and all correspondence or notices required, permitted, or provided for under this Agreement to be delivered to any Parry shall be sent to that Parry by first class mail at the address provided below, or to such other address as directed in writing provided to a Parry by the Parry to whom the notice is to be directed. All correspondence shall be considered delivered to a Parry as of the date that the notice is deposited with sufficient postage with the United States Postal Service. A notice of termination shall be sent via certified mail. Unless otherwise directed, notices shall be mailed to the following addresses: To the City: City of South Bend Utilities Division 125 W. Colfax Avenue South Bend, IN 46601 Attn: Assistant Director of Utilities E To the District: St. Joseph County Regional Water & Sewer District 227 W. Jefferson Boulevard County -City Building, Room 732 South Bend, Indiana 46601 Attn: County Engineer [Remainder of page intentionally left blank.] M ATTEST: Secretary, Board of Trustees ST. JOSEPH COUNTY REGIONAL WATER AND SEWER DISTRICT President, Board of Trustees CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS Gary A. Gilot, President Therese J. Doran, Member Elizabeth A. Maradik, Member Jordan V. Gathers, Member Joseph R. Molnar, Member ATTEST: '�2111J' cfh�lvl Linda M. Martin, Clerk BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 9-29-20 Name Kim Thompson Department BPW Date 10-13-20 Phone Extension Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer ❑ Officer Name BPW Attorney ® Attorney Name Clara McDaniels Dept. Attorney ❑ Attorney Name Purchasing ❑ Check the Appropriate Item Type — Re uired or All Submissions ® Professional Services Agreement ❑ Contract ❑ Proposal ❑ Open Market Contract ❑ Amendment/Addendum ❑ Special Purchase, QPA ❑ Bid Opening ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet ❑ Quote Opening ❑ Quote Award ❑ Reject Bids/Quotes ❑ Proposal Opening ❑ C/O & PCA No. ❑ PCA ❑ Chg. Order, No. ❑ Traffic Control ❑ Resolution n Other: n Ease./Encroach Company or Vendor Name New Vendor MBE/WBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Information St. Joseph County Reginal Sewer Distrcit U Yes U If Yes, Approved by Purchasing ® No ❑ WBE Completed E-Verify Form Attached ❑ Yes No _Agreement for South Bend Municipal Utilities to provide billing services for the SJCRSD For Change Orders Only Amount of ❑ Increase $ ❑ Decrease ($ ) Previous Amount Increase Current Percent of Change: Decrease New Amount $ Increase Total Percent of Change: Decrease Time Extension Amount: New Completion Date: