Town of Carmel/Keystone Sq./Water ServiceAGREEMENT BETWEEN THE· TOWN OF C~._.4EL
AND
KEYSTONE SQUARE COMPANY
FOR'
SEWER AND WATER SERVICE WITHIN
THE ANNEXED AREA
·
THIS AGREEMENT, made and entered into this day of
~W~m~ ~ i. 967 by and between the TOWN OF CARMEL, INDIANA,
hereinafter called "TOWN" and ~YSTONE SQUARE COMPANY, a
partnership consisting 0flRalph.·Wilfong, Landmark Development
Coo (a limited partnership)?·iand Essex House, Inc., an Indiana
hereinaf ' ~' '~'
corporation, ~er ··called "~YSTONE".
WITNESSETH:
WHEREAS;·the ?OWN is a munlcipality in Hamilton County, Indiana
which presensly owns and ·operates both a sanitary sewage sys%em
with treatment plant and water works system for the benefit and use
of citizeas liuing within its municipal territory and·which systems
are presentlyintended to·be used for Service to citizens··residin9
within the corporate limits bf the TOWN prior to annexa~i0n of the
KEYS?ONE SQUARE development area~ of approximately 500 acres, more
ou ~ess~ and
WHEREAS, such systems are ~orth and west of-~such annexed area,
~ndicating a need for additional systems south and east of Carmel,
which is the direction of the natural flow toward White River, and
WHEREA~, the Town annexed said 500 acres of land on August 23,
1966, by Special Annexation Ordinance C-16 upon petition for
annexation by the owners of all the land to be annexed there~n
and under which ordinance the Town agreed to negotiate fair and
equitable agreements pertaining either to sewage or water service·,
or both,
un~form
=o citizens residing
elsewhere
Town of Carmel, and
for citizens 'within Said annexed territory au the same
and non discrimina=ory'ra=es and charges aseare provided
in the corporate limits of the
WHEREAS, the Town has previously indicated~that it prefers not -',
tO bond or otherwise': expen.d 'sums.;of money at ,the prese, n~ time for
the extension of its sanitary ~?"ewage service Or water, service
indicate
a..w~. 11.1.ngnes s to
· into the annexed territory, but does
· r,~imburse KEYSTONE for/itsi'cost i~in such~ extension,'~as hereinafter
provided, and '"'
WHEREAS, Ke~ystone ha~ ~he presen.,t,, a?ility.'-.to construct both water
and sewer"facilities, incl.uding lan'd acquisition for treatment
site, ,and further. ~nte~ds to eon'struct both? esidential and
commercial complexes?in the annexed terr~,t~y,' ali of which require.
.... , "-.~'and demand both: wag~r..:an4;sewag%. fac~lltlesj~P99 completion' ' . - .--
.W~R~S, Keystone ,,is', ~w~ll~ng'~].:t°. _,. . construct.both., ~.. water, and.
'~-~O'~-~l'~n*es~and~ac~t.it'ies, including trea~ent%~plant, in accord-
ance with spocifi~at~ons approved in advance<by;"the Town and furth'er
'to: own 'to ~perate
~s willing hll~w',the "~ and mai~ntain Said':treamen~
plant and facility,-.~includ~ng~b~-ll~ng. ~d handling ~of revenues over...
'. ~C an a~reed period of time, with the'ultimate intention that,?th~ Tow~}
~)' ~' buy out 'and purchase .t~e,~entire, ~water~,an~ .~ew~g9,~.system from . , ~ ..
revenues, bond issues grants or~ a co~.~na~ion~of any of these, ?~,~-.,~
~ NOW THEREFOkE, ~.'in~ ~'.-'covenants: an~ '
~- agreements contained~l ~ement,do..~:: ~
hereby agree as ~6i16w~:.' ,-
1) SERVICE :'~E~':]j '""
?% %~. ,Agreement .', . ~
.- is th~' territory ~nB~ed by 'Sp
1966..~
2) TERM OF CONTRACT:
This contract shall ~e and-remain in force
effec' for an in'determinate period, subje~'~:~'}hoWever,' to the
options hereinafter Set forth. .~.
SERVICE. TO BE PROVIDED:.
After the water and sewer
and
3)
systems are constructed and
'become operational, ,the Town agrees to collect revenues and to
· assume exclusive control o~ver the sewage ~reatment facility and
water lines with .~appurtenances in connection therewith. The ...
water lines shall be and become part of the existing Town water
· system and shall.~connect thereto. However, the existing sanitary
-'"~' sewage system of the Town of Camel shall 'be and remain separate
and apart from 'the sahitary sew.ag9 system to be constructed under
· ~ = ~he-terms-of~this_Ag~e~em~en~t and" shall not be connected until the
~' new system for sewage and treatment is purchased and completely
..... , ~ owned bv the Town of~carmel. Ail funds or revenues derived from
'.,- . . the new system' shall-be 'kept separate 'and apart from current sewag~
ahd water funds and,- accordingly, all Costs and expe.nses connected.
.~' shai1 be fea~ohable and
with the maintenance and operation of the new system/~shal~ be paid
!ct ou~. of. the separate. funds of/ghe n'ew .sYstem and shall:be
· recorded in' separat0 ledgers and account .books apart from' the
',existing records' of,the water an.~ sewage c~mpanies of the Tow~ of
'"]'" Carmel un~il owned' by th'e Town o'f Carmel ' .If~Revenues fail to meet',:/.
r equ~ red.~.?
= expenses',~' the% Town will'.provide'~,thel..d~fference as . '.,
for maintenance and operation: of the, water, and sewage ,systems', The~<,~.~,~
Town shall account'.to KeYstone at least ~semi~'anhually.
~. ~ , TheTToWn"agr~es that'from and?after'the time ~he
1..be maintained to
systems'."become ~opera~ional, the,. facilities'.w~,.1,
'. ~,..requires.
adequate capaci .ty' to .accommodate the~'water and sewage requiremen
of Keysl:onO- or any d~velopment or improvement it maylcons.truct :l.n,
ehe annexed area and the Town agrees that,,no connections will be
"~ 'or 'jcoul~im?air or jeopardize
permitted by thi~Town ,which ~will"
adequacy of the facilities r.o meet. such~- requirement'8 of. Keystone
ae any time in the future.
~ Keystone 'may. expand,_ replace or enlarge' the sewage ~s.'ys't'em
from cumulat%d~, funds'~deri, ved from the s.ystem as and when~their
future expansion r'equir~'s. KeyStone wi-ii Pay for any expansion ~t
The Town will pay for all ot~er~?exDansion or extensioh.'
Plans and specifica~ions..for.,'alt'~-construction by
· -'Keysuone shall be approved in.advance of construction by the Town"s~
engineering firm, nbw'desi~nated as Clyde E. Williams & Assoc., '
and all ~uch·plans shall be prepared by'a registered professional~/.~..
engineer. Keystone a ees~o-g~all~g~neer~ng work which ,it
has completed ~o th~' To~ for ex~.ination and .will make available ..
~o the' Town all~draw~ngs,~aps~and other doc~ents~wh~ch may. be-..,
~ . , . ~ .... , .., , -, .... .,.~.. ,, , ,
4), ' SPECIFICATIONS'~D ~TERING. ...... h.' ..... ~ .... *, , ' ~ .
~.;' ' :' . Keystone agrees ~that-,the construct~0n.of~.sewer and water
].~i:~L:'facilities shaii' b~ made/ ih accordance%with the approved plans and
specifications 'and no'.,:other and .agrees to submit to. the Town two
(2) copies of':~"as built%'~drawings and~ specif~cat'~on~ c~rt~f~ed .by..
a registeredr p~e~s~0'~al' 'engin~erj~6~ ,each phase-.~', c0ns~ction':
BEFO~ t )articula ~hase of,,the, znstallati6n.is, placed .~nto ....
operational~ :onstruct'~on ,.work in shall' be subject-
to inspection by agents of the Town, from .time to time, .and such.:. :~:-
other steDs agreed to here mutually as will assure the construction:.¢.;,~,~j.
'3 and installation in accordance with;Town standards and specifications;
Deviations from approved plans will be corre?ted promptly' upon : ,';~.'.~.
notice. ~ No changes in plans or 'specifications shall be made without.
wrltEen agreement of both parties hereto ...... r : -
expense..to:furnish:~and maintain meters
The Town.. agrees at' its . . : ,.
and volumetric measuring, d~ices in connection .with water usage which
.will be correlated an . employed 'for' billin :to ·sewage customers.
:'% . :,'~'~.~
' ~ ~' ' The water system herein referred to' shall be constructed by
Keystone from the Town' s' existing' system'-and:connected ~herew~th ~:'~
'-' ~ ,~" · - ect to-,the same purchase agree-
but such installation-shall be subj
'U'~ ~-' men~ as is hereln provided in more deta~'!~!.~0r.'s,e~er: llnes.~.and plant/
· '. facilities. The .des~ n and engineering of~. sugh sys.tem shall be at
~'~ ~-' the Town s expense,- .... ~ ~..~.._..~ ....- . ,.~ ..... . . . ~..~.-~
· .:~. 5)". RATES-~ SERVICES . AND . CHARGES ~ :'". ': ".' : .' :'/:.:.' ;'; i ,:".~,l
: '.. '. For services~ to. water~ .and. sewer .customers wmthin the
annexed territory, all','metering~or'.measurlng devices will be read ·
monthly by the Town, '.o~..at. such':, t ri i e~vals as ;_he Town may.
i" and b'illings therefo~ .had,died. byi :persons ?employed 'b~.'~he :.Town 'but~
paid. for, proportionately, from '-rew~-nue,~derived from the.n°w .sy~t~
.... in'accordance with the ..a~, ount~ of servlces"p'e~rformed between the ',,
~ ....~ ... ... ~. . ,, . . '~'~!.._.~ '.
new and the existing systems......'.~ ............... ;
For a-ll services' provided~to..'sewe~' O~r'water Customers,...a rate':
, . , . , . . , :, .... . '.;'~- ,.. , - · ,.- . -~
' ~,~]~ ~n ~hat bein~ char~ed 'forCe,the same. or. similar, customer,, se
· elsewhere' within the~:.corporate .tim~ts ~of,.,t.he:..Town o.f. Carmel w.?lvl..~
,, ~ ~ charged ~unlformlv ,and .without .dlscrlmi-natlon.and there shall
! . , dxfferential" established' between~.l he ~annexed, area ,and the .~.:
~- ~ be. no ~ · ~ , ~,~ ~ , ~ '
previous area com rlsin e Town of Carme~,.,'~'If barges or' rates.;'.
are officially altered by ~he ~Board 'of T~rustees.,of. the Town of
:~he_._ ~ ' " " ' ' *" ' '. '
Carmel
from
time
time,*
modification in .charges~ or~ rates wi'l
De accordingly re:lec:e= w~:n:n *the'[annexeu-:cerr~torv; ~'~r~.~, ~ ~
. 6), OPTION TO PURCHASE, . , ~ ,.. 5 ...... ~. ~-~. .~ -
· ' ' As further .~d.-addxt~onal conslderatlon'~for the...To~, .
3roviding servlces.'.'to the; c~t~zens residing wfthin:.~e annexed .;,
errit0ry above 'referre8 to,. ~Keystone hereby gran~S..[~Q~"th~ Town.0f .
Carmel. and any 'successors in office'.to ":the present' Board of T~stees'
theroof, the.right and o~tion~to;~pu~chase'the'ent~ro water and-
sewage [....sys~em. and p~ant, ~nclud~ng. plant ~s~te, which
shall ~e~'c0nstructed:pur.~uan~ to th~s Agreement by.~Keystone, ~d' the?~:
...%ntontion of th~' Town::to purchase sa~d ~fac~l~t~es shall be carri~
~n~he Board of ~ru~ee,s ofr"the Town 'o'f
e e Town 'or Keyst
-'.the' part .of ith
. ,7 ),' PLANT" SITE rAND' SYSTEM. ~CONNECTIONS
*;' * ,Kevs tone ~expressly..covenants
x~.propose~- p~ant slte:'o~,ll~'acres
and w~fe located on,,the.;north_s~de
~ay ' '" """' '' ....
in C To~shlp,':';Keystone; will1%(
'or ordinance prov~dlng for such:;de'cisl, on,
principal .offices.'iof ,Key.stone a,nd such other
necessary, and no (~the'r"official*
,.~;'jexerc'ise bf frs ,opti,
' %;¢,~4property, ~. with impro.vements.'
.... ;,jr.: t~tle' to ~he: Marten.:,property, vo~d,
,,~.-..further liabll~ty.on ~y party ~ et
The Town agrees to apply, at its expense to the Stream
~. Pollution Control Board and Indiana State Board of Health for ·
?,]~:'~ necessary approval ok'"plans for' plant facilities involved herein
to otherwise coopsrate.with.Keystone in orde'r to accomplish the
.... general intents and purposes of this.Agreement..'j ' ',:,"
The TO~ shall ha~e exclusive right to dete~ine where
and b~ whom 'connectioHs may be madet to the sewage or water systems~.~?~,
cons=ructed hereunder, including possible ~hol~ale trea~ent of
-sewa e into the ¢lant facility 'itself, providea however that such
}]connections shalI not jeopardize' the pla~t capacity =o acco~o~a==
successors and assigns , ~ .'.. ·
~ Keystone and i:ts .tenants/as prov~ided.in Paragraph 3,h~g~of.';
........ It. is a eed and the Town here co sents to.const~ction
of a~l sewage trea~en= plant on-the 'John Marten 11 acres -
:*-'-~-~' '~d~Key~ono ~agre~s torunde~rf~]e the :cbS[ ~:',preparing. s~ch-plans
-' ~d detailed speclf~cat~onsA all., of wh~ch<~i~-bewrei~ursed-by~th~,,
'~([~i ' ' - ,' ~hat"oortion of 'th~' "sewaqe.system'[,a~ used here~n
for which the. Town intends ..... to. rei~urse~ Keystone. upon purchase,~.
and within its own~.~'development-~..· ~.'~e~;-,.~t~r system shall ~
· ., all' oversizing
7]. approve
. .. . · . ,... · /', ·,., · .. ,,:/::.,'~ ..: .'~ ,, ; '.. .
: ,: If"'the option' to purch~'e 'i.s~.:e~'~rc'fSed 'by 'th&' ~own,
w~l 1 '.t~ke-'plac~,'per~o~cally as. ,the
.-.~;j~:~,-~unds,justify ~d the .final rem~ursement' apd transfer of, o~ership ':'
w~ll gaKe p&ace' at.such, tmme as. the, revenue .from the system will'
' ...... -..,- ': '. . :, ~.L ~ ,-' . :..-.-..4 -
Justify 'a bond mssue. ~. -'. . ..~:~ .,' .... .. ~ ~ .
~e ~own ~urther a~r[e~ eha~ a~ rea~onabl~ fomula
established which will allow reason~te."period~c pa~ene to'
fore and"after exer~ise' of ~he'bption . '..'
Keys~on~of~.;e~ of ·money .received':'from. any so~ce' which, may
~o unusod or unnocoss~ry .for. ma~ntonanco or 6~erational cOsgs, but
'~ ' . : ' :,'. "'?",..~ne. . - .~ ' ~
not expansion, lB- any ,'event.-no~:less than~lnterest as ~herelnafter-
prov~ded~,under which fomula the money.pa~d over to .Keystone ~n'-
such per~odic 'pa~en~s will be .credited by?Keystone to the Town to.
apply-against the ultmate:purchase'-..pr~ce~of..the facml~ty,, thus'
~l-ng t'~to~the: ~o~t..so in
": 'aYmgnt sba
y .%' Such p
to Ke stone.~ s
"firs t"~o i~
aft vid d 'for.,.'-' '' ... . .-..e: ,,' ,.. ' ' "·
herein er.. pro e ., .:~.,.~..
. ,'.: . The .purchas. e price t° b~ pamd,by.,:;.the Town to e
~ ";~,~ !:". '-:~"i'. · " " ':"
for ~he water system'"'and 'Sewage'. stem '. i" :~..: ,..~,.
shall.be, the totaL, of'the.followmng.- :..',.z.,.....
~' '~ lnterest,"on.mone~_'[invested,' at'l-~ % ~ove .-
.... ':'- ~er~can- Ple~cher N~ ~ional' Bank, prm~e:['ra~s,-'":' -"' '
" ' '. -~nd ~asemen~ acquisition'::for, s~wer and wa~er, -
Flines'~nd .~r~a~men~:'p~ ~ ~de Key
-" -" ~n~ercep~or' lin~s ,: from ,Town ,gorporation line :.to.'
~'":'; :~'. :site' ~1t:: sewer lin~ ~':'i~' '.' th~':'. ~e~g ~[ ;s~ ~'~':/and: :
.'..water llnes l~--the water system, ~:'..-~.-.?.:v '-
. - ~:.:~ . ... . .. ..........
In'tercep.~r oversizing. ~i~s~de -Keyst6~e ~'~ op~
''" .''-. ' '.*t'~ - $ ~. · '
'-' .... ..... ~ plant, costs,; including. . but not limi'ted
"' ' ~ ~g d~o er .,~ .
..,. f).'
, :, an th necessary and~.:
,'~" '"?f ,connected therewith,.. 0 the .above'¥i~
of
own'. ma ySt ~the, "
The'T y~'pay.-'Ke one~ amount due against the --'
'~purchase price:,in a,n.y~accelerated.amounts,'~.and upon determination.~
of:'the purchase' pr~,c~ .as Yabove~ formula, ted~., and payment.by the Town
tt:~, ]Keystone in .full,. the _entire wate'~, land ·sewage system; .together'.'with~:
'aPpurtenances
all . rots thereof,~'shall~be transferred 'to the
'Town .b~.' Keystone .w~tho~limitation or"ifurther condition wh~
~legal.,t~tle and ownership of the' water and sewage system he~
~,referred tO shall·.be.~and rema~n~ with Keystone until the total amou~nt
~.z~¥~,,due~-=,~=~'~' ,'~s.~paid,~-s. ubject?]0nly.., to the r~ght~s' herein granted ~to ithe
.'%':~'"~9{~ to'~ control and. ma~nta~n'.the-, fac~laty and ' system ~d to receive
~%~dlsburse .revenue-therefrom.' Upon *pa~ent~;~ln :full, Keystone agree~
l'<~}~{~o~tr~sfer~ title .to the-Town free of~:aLl~liens% or.encu~ra~
~'~ ..The Original'ficost' to":Keystone .~hall be certified
-the To~ by'a registered.professional engineer and a certified
public accountant, employed by Keystone ~d' approved.~by]the To~ fo
~.~-~. the express.~pur~se~ of.making-such dete~nat~on. ~.. Keystone agree~
to malntaln,.,all,~records-, and.. vogchers · from the...co~encement of
construction to' b9 made',,ava~lable to~ suc~ ;.~when- needed or ....
rts '~to 'acqu.~i ~re~-~anY,,
ll) EFFECTIVEunTEvF THIS .AGREEMENT :_ .>~- ~,~-..''. ,. "-~ 5
Ttli,~:und=~stood that this contract..shall
enforceable until app,roved by off~c~at action" of..~the..Board.~of. T~stees~,
)~ t~e To~ of C~mel,. Indiana and this Agre~ent~:shall be;rendered.~¢%¢'
~oid ~d of :no' f6~ce ~r :effect unless Keyst6ne shall'.comence, conse~er.'
tlon of the water and .sewage systems within, ninety- (90) .days' of the Cv~.,:~;
date ~f. this 'A~r~ement as finally exe.cuted~r~..if ~.%iti~atio~'.is',co~= ~ .....
~ .,,,~h ~e~rd:~ to th~ '~ewace or water svstems; :the~ 90 ,d~vS~,af,tem-the
~, ~. , ~ .', .~eystone. agrees =o'~ place, an executed copy ~qf '~his~ Agreement
· n the off,ce of the RecoVer. of' H~lton County, Indl~a.wlth~n~.ten,~?~'
(10} ~ays of its execution and final ~roval'.by/the Board of. Trustees~
~ .... IN WITNESS ~ER~F,; ~the:.partie~ hereto,/~ve.
" ' "/7,'~',..: - .'...". Wu~ .-. '. .
· . , 1967.
.
The ~nde~signed persofis:'ex~cuting 'thiS..Agreement on behalf of