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