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HomeMy Public PortalAbout097-2005 INTERLOCAL AGREEMENT 5.6.INTERLOCAL AGREEMENT This Agreement is entered into this 23rd day of _June , 2005, and effective March 28, 2005, by and between the City of Richmond, Richmond, Indiana (hereinafter "City") and the Richmond Sanitary District (hereinafter "Sanitary District"). WHEREAS, the Sanitary District has previously handled its budgets, financial services and accounting through employees of the Sanitary District, specifically a finance manager, accounts payable clerk and accounting technician; and WHEREAS, a recommendation from Waggoner, Irwin, Scheele and Associates, Inc., Consultants for the City, set forth three options regarding the feasibility of the Finance Department of the Sanitary District, including forming an Interlocal Agreement with the City's Controller's Office; and WHEREAS, with the resignation of the finance manager of the Richmond Sanitary District, the Sanitary District now desires, for purposes of cost containment and efficiency, to reorganize the handling of the budget, financial services and accounting for the Sanitary District and have said budget, financial services and accounting managed and operated by the City; and WHEREAS, this reorganization of the budget, financial services and accounting of the Sanitary District will substantially reduce costs for the Sanitary District and minimize redundancy of procedure of both the City and the Sanitary District; and WHEREAS, the City and the Sanitary District desire to set forth in writing the terms of their agreement through this Interlocal Agreement regarding the managing and operation of the budgets, financial services and accounting for the Sanitary District by the City; NOW, THEREFORE, in consideration of the terms and conditions contained herein, including the above stated recitals, the parties agree as follows: I. ACCOUNTING AND FINANCIAL SERVICES — The City shall be responsible for, and shall administer, the budget, financial services and accounting for and on behalf of the Sanitary District, including any and all budgeting, financial services and accounting duties or tasks on behalf of the Sanitary District, effective and retroactive to March 28, 2005. 2. SUPERVISION AND POSITIONS - All personnel operating under this Interlocal Agreement, and all positions created by this Interlocal Agreement, shall be employees of the City of Richmond, shall work out of the Controller's office and shall be supervised by the Controller of the City of Richmond. Contract No. 97-2005 The following sets forth the handling and managing by the City of the Sanitary District's budget, financial services and accounting: A. Personnel in the Controller's Office will now assume additional duties and responsibilities in handling and managing Sanitary District's budget, financial services and accounting, over and above the already existing budget, financial services and accounting rendered by the Controller's Office of the City of Richmond, with the City's Controller's Office personnel compensated an additional $20,000.00, on an annual basis, retroactive to March 28, 2005, as set forth on the attached worksheet, with said additional compensation subject to the approval of the Common Council of the City of Richmond. B. City's Controller's Office will hire an additional full-time person, at an annual salary of $26,910.93 to handle, among other things, accounts payable, accounts receivable and payroll duties. C. The approximate cost to City for the increased salary of the Controller's Office personnel, and additional personnel created by this Interlocal Agreement, handling Sanitary District's budget, financial services and accounting, will be $10,444, on an annualized basis, which amount includes the Public Employee's Retirement Fund (PERF), Social Security and Medicare, and health insurance premiums for the new full-time person. D. An expense category with an annualized line item of $2,400.00 to cover office supplies, gasoline and other miscellaneous expenses incurred by City's Controller's Office personnel in assuming the duties and responsibility in handling and managing the budget, financial services and accounting of the Sanitary District. 3. REIMBURSEMENT - The total annual reimbursement to City from Sanitary District shall be approximately $59,755.15 (but in no circumstances shall the total annual reimbursement exceed $62,500.00), which total will be prorated in calendar year 2005 from the effective date of this Interlocal Agreement. Beginning on January 1, 2006, future Interlocal Agreements between City and Sanitary District will be adjusted for pay rate increases that match the City's percent increases given to all employees of City. 4. SAVINGS - The savings to the City of Richmond with the passage of this Interlocal Agreement between the City of Richmond and the Richmond Sanitary District is projected to be $82,750.00 on an annualized basis. The savings to the Sanitary District is the difference between the current wages and benefits paid to the Finance Director, Accounts Payable Clerk and Accounting Technician employed by the Sanitary District, less the amount of this Interlocal Agreement between City and Sanitary District. 5. COSTS - This Agreement is intended to cover all additional costs incurred by City's Controller's Office for handling the accounting and financial services of Sanitary District. Any additional costs (other than cost of living pay adjustments), or costs unforeseen at the time of this Interlocal Agreement, will be adjusted by amendment per written agreement between the City and Sanitary District. 6. MISCELLANEOUS — This Agreement shall be construed according to the laws of the State of Indiana. 7. AMENDMENTS — No amendment or modification to this Interlocal Agreement shall be made except in writing and signed by both parties. 8. AUTHORIZATION — The individuals signing below represent that they have full authorization to execute this document on behalf of either the City of Richmond or the Richmond Sanitary District. IN WITNESS WHEREOF the parties execute this Agreement as of the date first set forth above although signatures may be fixed on a different time. CITY OF RICHMOND BOARD OF PUBLIC WORKS Approved: S/S Sarah L. Hutton Sarah L. Hutton, Mayor S/S John P. Kenny John P. Kenny, President S/S Dian Lawson Dian Lawson, Vice President S/S Mary Jo Flood Mary Jo Flood, Member RICHMOND SANITARY DISTRICT S/S Rodney A. Phenis Rodney A. Phenis, President S/S Richard W. Bodiker Richard W. Bodiker, Vice President S/S Terrance J. Dull Terrance J. Dull, P.E., Member