HomeMy Public PortalAbout045-2012 - Engineering - Indiana American WaterMarch 12, 2012
W.O. #25-47359795
INDIANA AMERICAN WATER COMPANY, INC.
AGREEMENT FOR WATER MAIN EXTENSION
DEVELOPER INSTALLED - WITH REVENUE REFUND
NO SUBSEQUENT CONNECTOR
THIS AGREEMENT, made and entered into this 5 day of 19PR1) , 20/4�, by
and between Indiana American Water Company, Inc.—,—an-lndiana corporation hereinafter
referred to as the "Utility"), and City of Richmond, 50 North 5th Street, Richmond, IN 47374
(whether one or more individuals, partnerships, corporations or other entities, herein referred to
as the "Developer").
W ITNESSETH:
WHEREAS, the Utility owns and operates the water system serving the community of
Richmond, Indiana and surrounding vicinity; and
WHEREAS, the Developer is engaged in developing "Midwest Industrial Park Phase
2 Section 1" consisting of 1 lots located in Wayne County, Indiana, (the "Development") and
has requested the Utility to provide water service to users within the Development; and
WHEREAS, the Developer has requested approval by the Utility of Developer's plans,
specifications, and estimated costs (Exhibits A and B, respectively, which are part of this
Agreement) to install water lines and appurtenances (herein referred to as the "Main
Extension") within the Development; and
WHEREAS, the Utility has reviewed and approved the Developer's plans, specifications
and estimated costs; and
WHEREAS, the Utility and Developer agree the Developer shall at its sole cost and
expense, furnish the necessary engineering, engineering services, labor and materials, install
the Main Extension and obtain all necessary easements, permits, right-of-way grants or other
authority which is required to provide water service to the Development;
NOW, THEREFORE, in consideration of the premises, covenants and agreements
herein contained, the Utility and the Developer, respectively, agree as follows:
Contract NO. 45-2012
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1. Developer Installation Prior to construction of the Main Extension, the
Developer must obtain and furnish to the Utility all necessary permits and approvals
from the State, County and/or City, railroad or any other regulatory authority in which
the Main Extension is to be installed. In addition, before the Main Extension can
begin, the Developer must have construction of the road grade completed and all
centerline or off -set stakes must be set and maintained until construction of the Main
Installation is completed. The Developer hereby agrees that at any time during the
installation of the Main Extension, the Utility has the right to inspect all aspects of the
installation at the Utility's convenience. The Developer further agrees the Utility may,
at its sole discretion during the installation, as a result of unforeseen field conditions,
request, and the Developer shall honor such request, reasonable and necessary
changes in the Main Extension related to location, workmanship and materials. Upon
determination by the Utility that installation has been in accordance with the approved
plans and specifications, water service will be provided to the development, which is
shown on Exhibit A attached hereto. The Developer and the Utility hereby agree that
the.Main Extension as shown on Exhibit A is of the size and at the location required in
order for the Utility to furnish the water service requested by the Developer.
The Utility expressly reserves and shall have the right to require the
construction and installation of. pipe of a larger diameter than the size originally
contemplated and as shown on Exhibit A hereto, provided, however, that the Utility
shall bear the cost difference for materials and labor between the larger diameter
main and the smaller diameter main. The Utility will pay the actual cost difference,
estimated as $NIA to Developer after the transfer of ownership of the facilities and
the reconciliation of the actual cost for materials and installation.
2. Construction of Main Extension by Developer The Developer agrees to
commence construction within one -hundred and twenty (120) days after the
execution of this Agreement, and to prosecute such construction to full completion
with all reasonable diligence consistent with good business practices and the
availability of required equipment, materials and labor. The Developer shall provide
periodic inspections of the Main Extension by a professional engineer, registered in
the State of Indiana. The Developer shall within thirty (30) calendar days after the
Main Extension has been installed, convey title to the Main Extension to the Utility by
the execution and delivery of appropriate bills of sale or transfer of ownership
documents including copies of paid invoices and instruments of conveyance, free of
all liens and encumbrances incurred by Developer.
3. Ownership of Main Extension Upon conveyance of title by Developer to
Utility, the Main Extension, including all mains, valves, fire hydrants, and other
equipment of which said extension is composed or to which the same is or may be
connected shall become the sole property of the Utility. The Utility shall be
responsible for the maintenance and repair of the Main Extension beginning on the
date ownership is transferred. The Developer shall have no right of property in the
Main Extension or any part thereof by reason of or on account of the Developer
having furnished a part or all of the funds used in the purchase of materials and
equipment for, -or the employment of labor in connection with, the construction of the
Main Extension.
4. Other Requirements of the Developer Coincident with delivery of the
appropriate bill of sale or transfer of ownership documents required hereinabove by
the Developer to the Utility, there shall also be delivered to the Utility by the
Developer:
a) "As -Built" drawings (3 copies) of the Main Extension certified by
the professional engineer responsible for the construction,
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b) Certification of construction in accordance with the Utility's
specifications, signed by the professional engineer,
c) Recorded easements and legal survey, all permits, and any
other information pertaining to the Main Extension, said
easements, survey and permits shall be in a form and
substance satisfactory to the Utility (please note that
easements shall be conveyed either on the Utility's standard
easement form or an acceptable recorded plat, any variations
to or from said Utility's form must have written approval by the
Utility),
d) Final platted map of the Development,
e) Waivers of Lien for materials and contractor,
f) One (1) year warranty on Main Extension for materials and
workmanship,
g) Schedule itemizing all materials and costs of the Main
Extension, certified by the Developer as being accurate,
h) Payment of fees related to Main Extension,
i) Developer demonstrates to the Utility's satisfaction that the
Main Extension has been: i) flushed, ii) pressure tested, iii)
chemically and bacteriologically clean, and iv) otherwise
conforms to all of the Utility's standards.
5. Determination of. Cost of Main. Extension Utility and Developer agree that the
Cost of Main Extension shall be the amount appearing on the transfer of ownership
documents rendered by Developer to the Utility plus the Utility's fees attributable to
the Main Extension.
The Utility's fees related to the Main Extension shall be an amount equal to
4.83% of the amount appearing on the transfer of ownership documents to cover
engineering, administrative costs, legal costs, direct labor cost, direct labor overhead
and transportation costs incurred by the Utility.
6. Refund of Advance The Utility shall establish on its records, for the benefit
of, and in the name of the Developer, a "Refundable Advance Account" in an amount
equal to the Cost of the Main Extension, which shall be subject to refund to the
Developer to the extent, at the time and in the manner provided herein. The Utility
agrees, that for a period of ten (10) years after the date of transfer of the Main
Extension for each customer which is directly connected to the Main Extension, the
Utility will, as soon as practicable, but no less than one time per year, refund to the
Developer an amount by which three (3) times the estimated annual revenue to the
Utility from such new customer exceeds, if any, the Utility's investment in connecting
such new customer. All refunds.paid under this Agreement shall reduce the amount
in the Refundable Advance Account established in the Developer's name. In no event
shall the total amount of refunds to be paid by the Utility to the Developer under this
Agreement exceed the Cost of the Main Extension, such amount being the limit of the
Utility's obligation for refunds hereunder.
7. Basis for Calculatina Refund In calculating the amount of refunds, if any, to
be made under the provisions of paragraph 6 above, the Utility and Developer agree
that the following shall be applicable:
a) Residential Service In determining the "estimated annual
revenue" to the Utility for each new residential customer connected to the
Main Extension, the Utility shall be entitled to use its average annual revenue
per residential customer realized by the Utility from comparable residential
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customers on its Richmond water utility system in the calendar year preceding
such connection, adjusted for any changes in the applicable rates and
charges for such service which have become effective in such prior calendar
year or in the current year on or before the date of the connection. In
determining the Utility's investment in connecting each such residential
customer, the Utility shall be entitled to use the average of its costs for the
same size service connections for all residential customers incurred for its
Richmond water utility system during the preceding calendar year. Such
investment in connecting shall include all costs in connecting service to new
customers, including services, meters and meter vaults and installation
thereof.
b) Commercial and Industrial Customers In determining the
"estimated annual revenue" to the Utility for each commercial or industrial
customer connecting to the Main Extension, all known factors affecting
probable usage by such customer under then applicable rates and charges
shall be considered, including the amount of consumption or annual revenues,
if any, specified in any contract or agreement executed between the Utility and
such customer by virtue of which the customer is or becomes obligated to
take a specified quantity of water or guarantee specified revenues for a
designated period of time. The Utility's investment in connecting each such
commercial or industrial customer shall be the costs incurred by the Utility in
order to provide the requested service, including the cost of service, meter,
meter vault and any other equipment or facilities required and the cost of
installation thereof. If an estimate of annual revenue cannot be computed for a
commercial or industrial customer, the actual revenue received for the first
twelve (12) months shall be used in the calculation of the refund due and after
the twelve (12) months revenue figure is ascertained, it shall be multiplied by
three (3), the Utility's investment in connecting shall be deducted, and any
refund due shall be paid.
c) Fire Protection Service. If the Main Extension is designed to
provide fire protection service, each fire hydrant (or private fire service)
installed on the Main Extension pursuant to order of any authorized
governmental body or pursuant to any contract or agreement with any private
firm or person, shall be considered as a customer connection for purposes of
refunds hereunder. The "estimated annual revenues" to be used for such
purposes shall be the applicable annual public or private fire hydrant rental (or
private fire service charge) specified in the schedule of rates and charges of
the Utility for its Richmond' utility system as in effect the time of connection of
each such fire hydrant or service. The "cost of connection" for each such fire
hydrant connected to the Main Extension shall be the actual cost to the Utility
of such fire hydrant and all necessary attachments and appurtenances and
the actual costs of installing same.
8. Disposition of Unrefunded Advances At the expiration of the period of ten
(1 Q) years from the date of transfer of the Main Extension any balance of the
Advance not refunded or subject to refund as reflected in such Refundable Advance
Account shall, subject to applicable law, become the property of the Utility.
9. No Refunds Based Upon Other Main Extension Notwithstanding any other
provisions of this Agreement, the Utility shall have the absolute right at any time to
construct and install other main extensions and appurtenant facilities connecting to
the Main Extension. Neither the connection of any such other main extension nor any
service furnished by or from such other main extensions shall be subject to or in any
manner affect this Agreement, and the Developer shall not be entitled to any refund
of all or any portion of the advance made hereunder by reason of the connection of
such other main extensions or connections for service therefrom.
10. Indiana Utility Regulatory Commission. This Agreement is entered into by the
Utility and Developer in conformity with the rules and regulations of the Indiana Utility
Regulatory Commission and the Utility's Rules, Regulations, and Conditions of
Service on file with and approved by such Commission. In the event of any conflict
between the terms of this Agreement and the rules and regulations of such
Commission and the Utility's Rules, Regulations and Conditions of Service, the rules
and regulations of such Commission and the Utility's Rules, Regulations and
Conditions of Service shall control and shall supersede any inconsistent terms herein.
11. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, including any subsequent connectors, and their
respective successors and assigns.
IN WITNESS WHEREOF, the Utility and Developer have properly executed this Agreement
or caused the same to be properly executed as of the date hereinabove set forth.
Approved:
_
Sarah L. HUtt n, Mayor
Dated: 2012
INDIANA AMERICAN WATER COMPANY, INC.
0
Name: Keith Morgan
Title: En-gineering Manager
City of Richmond
NAME OF DEVELOPER
By and thr ugh its and of Public WUrks & Safety
Bv-
Name: Vicki Robinson
President
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Exhibit B
T.O. #25-47359795
IND.IANA AMERICAN WATER COMPANY, INC.
DEVELOPER INSTALLED MAINS
COST ESTIMATE FORM
ITEM DESCRIPTION
QPANTITY
PRICE
/UNIT
TOTAL COST
DR18 a Q PVC QR POLY PIPE
Z' PVC OR POLY & APPURT.
/FT.
$0.00
4" PVC OR POLY & APPURT.
IFT.
$0.00
6" PVC OR POLY & APPURT.
IFT.
$0.00
8" PVC OR POLY & APPURT.
IFT.
$0.00
12" PVC OR POLY & APPURT.
1694
$36.00
IFT.
$60,984.00
7PVC OR POLY & APPURT.
IFT.
$0.00
ASS 50 DUCTILE IRON PIPE (OR PRESSURE
CLASS 350
6" DUCTILE IRON PIPE & APPURT.
IFT.
$0.00
$" DUCTILE IRON PIPE & APPURT.
IFT.
$0.00
10" DUCTILE IRON PIPE & APPURT.
1FT.
$0.00
`I DUCTILE IRON PIPE & APPURT.
IFT.
$0.00
16" DUCTILE IRON PIPE & APPURT.
IFT.
$0.00
VALVES
4" GATE VALVE & BOX
IEA.
$0.00
6" GATE VALVE & BOX
IEA.
$0.00
8" GATE VALVE & BOX
IEA.
$0.00
10" GATE VALVE & BOX
IEA.
$0.00
12" GATE VALVE & BOX
6
$2,600.00
IEA.
$15,600.00
16" GATE VALVE & BOX
IEA.
$0.00
TAPPING SLEEVES & VALVES WITH BOX
_" X " TAPPING SLEEVE & " VALVE WI BOX
IEA.
$0.00
" X_" TAPPING SLEEVE & " VALVE WI BOX
IEA.
$0.00
" X " TAPPING SLEEVE & " VALVE W1 BOX
IEA.
$0.00
FLUSHING OUTLET
FLUSHING OUTLET (ALL SIZES)
IEA.
$0.00
FIRE HYDRANTS
FIRE HYDRANTS 5-114 V.O. W13 NOZZLES
4
$3,225.00
IEA.
$12,900.00
6" GATE VALVE & BOX
4
$940.00
IEA.
$3,760.00
HYDRANT LATERAL
4
$300.00
IEA.
$1,200.00
IEA.
TOTAL COST
$94,444.00