Perry County 62-4

Jurisdictions: City of Tell City, Town of Troy

Topic: Intermunicipal sewage treatment contract

Date: 1984 September

Purpose: To detail the construction, financing, and usage fees for a stream pollution control plant (hereafter, the plant). Plant will handle sewage generated by City and Town. Plant site must be located within City. Force main connecting sewer (hereafter, connecting sewer) will be constructed to connect Town's existing pumping station to an existing sewer, which will lead to the new plant. (Pp. 1-7)

Function: Public works/transportation, Sewage collection and treatment.

Type: Collaboration

Organization: Joint agreement. No governing board, but City has unlimited authority and power on behalf of itself and the Town. Single supply: City handles all construction and administration; Town pays its share. (Pp. 1-2)

Duration: Coincides with the longest amortization period of the bond issues contemplated to be issued by City and Town. (P. 7)

Services delivered: City builds the plant and sewers. (P. 1-2)

Financing: City received a Federal Construction Grant with which to build the plant. (P. 1) City and Town required to contribute their matching shares (no figures given), financed through the issuance of revenue bonds. (P. 3) Town will pay two kinds of fees to City. One is for debt service and other is for operating expenses. Rates at which Town is charged are based on sewage flow from the Town to the City (formulas included). (Pp. 3-4) These and the other financial matters of this project shall be submitted to the U S Environmental Protection Agency for approval. (P. 4)

Rates at which Town is charged will be recalculated yearly, within 60 days of the end of each calendar year. In the event Town does not start pumping sewage in the first year until after June 30, rates extant at that time will apply to the next calendar year as well. (P. 5) Town pays City monthly. (P. 6)

Administration: City has sole authority to advertise for bids and contracts, to manage construction, and to resolve any disputes. City required to consult Town as pertains to construction of connecting sewer, but City not required to abide by recommendations made by Town. (P. 2) Town required to operate and maintain its existing pumping station. (P. 2)

City shall maintain records that reflect the actual costs to process the Town's sewage. City shall provide certified statement to Town at end of each calendar year to be used in arriving at yearly rate adjustment. If City and Town cannot agree on rate adjustment, adjustment shall be determined by a rate study performed by an independent public accountant. Cost of study borne equally by both parties. (P. 5)

Flow meter installed by Town at its lift station will determine number of gallons of sewage pumped from the Town's sewer system. Town will furnish monthly statement to City indicating total number of gallons metered. This data used in calculating charges. City has right to inspect flow meter. (P. 5) Town must have flow meter recalibrated every 2 years. Upon failure of flow meter, repair must be made within 10 days. Processing charge for month(s) when meter failed will be average of previous 3 months. (P. 6) City has jurisdiction over any tap-ins made to the connecting sewer. Town required to maintain connecting sewer. (P. 6) City and Town each required to enact and enforce a Sewer Use Ordinance and a Sewer Rate Ordinance in their jurisdictions. (Pp. 6-7)