City of Carmel/CRWD
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SETTLEMENT AGREEMENT AND RELEASE
THIS SETTLEMENT AGREEMENT AND RELEASE, made and entered into
this ,5: day of U~~6, by and between the City of Carmel, a municipal
corporation in Hamilton County, Indiana, by and through its Board of Public Works
(hereinafter referred to as "CARMEL") and the Clay Township Regional Waste District,
a sewer district in Hamilton County, Indiana, by and through its Board of Trustees
(hereinafter referred to as "DISTRICT").
WITNESSETH THAT:
WHEREAS, Carmel and the District entered into a Municipal Wastewater Service
Agreement on the 10th day of June, 1983, which was subsequently amended by a First
Amendment, a Second Amendment, and a Third Amendment thereto (hereinafter
collectively referred to as "WASTEWATER AGREEMENT"), under which Wastewater
Agreement Carmel agreed to accept, from the District, wastewater, liquid waste, and
sewage of the District, and further agreed to treat and dispose the same in a proper
manner at its sewer treatment plant;
WHEREAS, said Wastewater Agreement included rates and charges subject to
change from time to time;
WHEREAS, a dispute has arisen between Cafl11el and the District regarding the
propriety and calculation of particular rates and charges that were effective on or about
November 15, 2005 (hereinafter referred to as "RATE INCREASE"), and specifically
PILOT rates related thereto; and
WHEREAS, Carmel and the District desire to amicably settle all terms of the
dispute related to the Rate Increase.
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NOW, THEREFORE, it is hereby agreed, by and between Carmel and the
District, that the dispute regarding the Rate Increase and the PILOT rates contained in the
Rate Increase pursuant to the Wastewater Agreement is hereby settled as follows:
1. The parties agree that Carmel shall withdraw the PILOT rates from the Rate
Increase, including amounts presently accrued and amounts to accrue in the future,
related to the Wastewater Agreement and Rate Increase, effective as of the September
2006 charges under the Wastewater Agreement.
"
2. The parties agree that Carmel shall credit the District in the amount of
$29,902.11, toward future due and payable charges, in full settlement for all PILOT rates
already collected by Carmel from the District pursuant to "the Rate Increase for services
rendered prior to September 2006. The parties further agree that such credit will be made
within thirty (30) days of the execution of this agreement and will be in full satisfaction
of all disputes arising between the parties under the Wastewater Agreement and Rate
Increase regarding PILOT rates.
3. The parties agree and stipulate that the attached "Exhibit A," the Calculation of
Wholesale Rate for Operation and Maintenance Costs and Replacement Cost on
Equipment, are proper and are accepted by the parties, that it shall supersede all previous"
calculations, and that it shall be incorporated into this Settlement Agreement and shall
become effective for the September 2006 charges and immediately as of the execution of
this Settlement Agreement.
4. The parties agree that by entering into this agreement, no party admits any
liability to any other party and each party expressly denies liability to all other parties.
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5. The. parties agree that this agreement is the final, complete, and integrated
agreement between the parties relating to the Rate Increase, PILOT rates and/or charges
pursuant to the Agreement, and any other agreement, oral or in writing, made either
before, after, or contemporaneous with this agreement does not operate to negate, modify,
or affect in any way any term or terms of this agreement.
IN WITNESS WHEREOF, the parties hereto have executed this agreement effective this
_ day of October 2006.
THE CLAY TOWNSHIP REGIONAL
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Presiii t
CITY OF CARMEL
by its BOARD OF PUBLIC
WORKS & SAFETY
Clerk-Treasurer
ATTEST {b/J
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Secretary .
ATTEST:
Date
Date
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CITY OF CARMEL, fNDIANA
BY ITS BOARD OF PUBLIC WORKS
AND AFETY
Date:
Burke, Member
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Date: \\ ~( 0 t?
ATTEST:
M. Johnson,
Clerk for
Diana 1. Cordray,
C Clerk-Treasurer
STATE OF fNDlANA
COUNTY OF -t\...m. ltui\
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)
ss:
Before me, a Notary Public in and for said County and State, personally appeared James
Brainard. Mary Ann Burke. and Lori Watson, by ~me known to be the Members of the City of
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Carmel Board of Public Works and Safety, and Diana L. Cordray, Clerk~Treasure of the City of
Carmel, who acknowledged the execution of the foregoing "Agreement" on behalf of the City of
Carmel, Indiana.
Witness my hand and Notarial Seal this
1 g- day of ~tl-"e.~
, 2006.
My Commission Expires:
NOTARY PUBLIC
e. ~(1 O..,v,'S
Printed Name
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My County of Residence:
li/l/Oft,J
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HamJkn
Date:
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CARMEL MUNICIPAL SEWAGE WORKS
Carmel, Indiana
EXHIBIT A
Calculation of Wholesale Rate for Operation and Maintenance Costs
and Replacement Cost on Equipment
351,492 (4) 100.00 351,492
$ 4,267,629 $ 2,789,552
3,580
$ 779.20
$ 664.45
17.27%
Clay Township Regional Waste District
2004
Total Costs
Annual Operation and Maintenance Costs (1)
Treatment Plant Expense
Sludge Handling Disposal Expense
Collection System Expense
Interceptor Sewers
Collection
Lift Station - 106 Street
Billing and Collecting Expense
Subtotal
General and Administrative Expense
Less: PILOT
Subtotal
Total Annual Operation and Maintenance Costs
$ 2,010,889
59,770
180,176 (2)
720,703 (2)
53,696
300,795
3,326,029
810,158
(220,050)
590,108
3,916,137
,
Annual Replacement Costs of Equipment for Items
Benefiting Wholesale Customers
Total Annual Operation and Maintenance Costs
and Replacement Costs on Equipment
Divide by: Total Annual Flow Received at Carmel
Treatment Plants (in million gallons)
Rate per Million Gallons on Flow to
Clay Township Regional Waste District
Current Rate per Million Gallons
Rate Increase
Allocation
Percentage
Shared
Costs
100.00 % $ 2,010,889
100.00 59,770
2,070,659
62.26 (3)
367,401
2,438,060
(1) Includes allocation of Taxes Other Than Income Taxes
(2) Total costs based on estimation that 20% of sewer collection relates to North/South Interceptor and
remaining 80% to the City of Carmel sewer lines.
(3) Allocation percentage is calculated by dividing Shared Costs by Total Costs.
(4) Costs provided by Brian Houghton of Jones & Henry Engineers, Ltd.