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HomeMy Public PortalAbout134-2012 - Sanitary - Indiana American Water - Water service teWATER SERVICE TERMINATION AGREEMENT THIS WATER SERVICE TERMINATION AGREEMENT ("Agreement") is.entered into as of this P2 3 day of CtNIW2012 (the "Effective Date") by and between the City of Richmond, Indiana, a municipal corporation acting by and through its Board of Sanitary Commissioners ("City") and Indiana -American Water Company, Inc. (the "Company"). Hereafter, the City or Company may also be referred to individually as a "Party" and collectively as the "Parties". WHEREAS, pursuant to IC 36-9-25-12(b)(4), the Company is willing to discontinue water service provided by the Company, at the request of the City, to sewer users who are delinquent in the payment of their sewer user fees to the City upon the terms and conditions contained in this Agreement. NOW, THEREFORE, In consideration of the foregoing and of the mutual covenants and agreements herein contained, the Parties hereby agree as follows: 1. Effective Date and Term. The provision of services under this Agreement will not begin until the City has provided the Company with an opinion of legal counsel in a form satisfactory to the Company that all ordinances have been validly adopted and all actions have been validly taken by the City to: (a) make this Agreement effective under IC 36-9-25-12(b)(4); (b) comply with the requirements of IC 36-9-25-11.5(b){3); and (c) make this Agreement a valid, binding and enforceable obligation of the City. This Agreement'shall be null and void unless such legal opinion is provided to the Company within thirty days from the Effective Date of the Agreement. The term of this Agreement shall be one (1) year from its Effective Date ("Term% and such Term shall be .automatically renewed for successive one-year Terms, unless written notice of termination is given by either Party to the other at least sixty (60) days prior to the end of the original or any renewal Term. Either party may also terminate this Agreement at any other time by written notice delivered to the other Party at least sixty (60) days prior to the termination date. 2, Water Utilfty _ Service Disconnection. The City may request that the Company disconnect water service to delinquent users (as that term is used in IC 36-9- 25-11.5) who are customers of the Company by providing written notice in the manner and with the information required by the Company. Written notices will only be issued by the City to coincide with the normal billing and disconnection cycles of the Company, and the Company shall disconnect service during its next normal billing and disconnection cycle. If the Company does not have the capacity to shut off all delinquent sewer users in the next normal cycle, it will shut off such delinquent sewer users in the following normal cycle. Issuance of this written notice by the City shall, for the termination of water utility service to the identified sewer service users, constitute a certification and representation by the City to the Company that all requirements for the termination of water utility service to the identified sewer service users under IC 36-9-25- 11.5(a) through (e) and the applicable ordinance(s) of the City have been fulfilled, and that all users for whom water utility service disconnection is requested are "delinquent users" as that term is used in IC 36-9-25-11.5. Contract No. 134-2012 3. Disconnection Days. Disconnections shall be made only between 8:00 a.m. and 3:00 p.m. on normal business days, which days ("Disconnection Days") shall be all days excepting: (a) Fridays, Saturdays and Sundays; (b) Company holidays and the business days immediately preceding Company holidays; and (c) severe weather days, as determined by the Company in accordance with its policies. The Company may alter its Disconnection Days to comply with: (a) the rules for disconnection of water service as then promulgated by the Indiana Utility Regulatory Commission ("IURC"); (b) Company Rules and Regulations as approved by the IURC; or (c) legislation. Nothing in this Agreement shall interfere with, inhibit or delay the Company from discontinuing its service to any of its customers at any time pursuant to the Company's Rules and Regulations approved by the IURC relative to water. service or payments owed to the Company for water service, or for any other reason. 4. Disconnection Refused. Notwithstanding the receipt of a notice from the City, disconnection of water service.need not be made by the Company if: (a) a local board of health has found and certified to the Company or the City that the termination of water service to the delinquent sewer user will endanger the health of the user and/or others in the municipality; -(b) if such disconnection otherwise would be prohibited under 170 IAC 6-1-16(c)(1) or the Company Ru[es'and Regulations approved by the IURC; (c) if Company is prohibited from disconnecting by order of any governmental agency, including the IURC, or a court of law; or (d) the City is delinquent in the payment to the Company of invoices rendered by the Company pursuant to Section 7 of this Agreement. In addition, in no event shall the Company be required to disconnect a fire line service without authorization from the governmental authority responsible for fire protection to the affected property, even in cases of combined fire and domestic service lines.. 5. Charges. Charges to the City shall be as set forth in Exhibit A to this Agreement. Charges may be adjusted by the Company no more than once per Term, upon sixty (60) days prior written notice, based upon increased costs to provide the services in this Agreement. 6. Restoration of Water Service. The Company shall not knowingly restore Company water service to a disconnected sewer user: (a) until the sewer service fee delinquency which resulted in the disconnection has been resolved or cured; or (b) after disconnection it is determined that service must be restored due to the circumstances listed in Section 4 (a)-(d) above. The City shall provide written notification to the Company within one (1) business day after such sewer service fee delinquency has been resolved or cured, in the manner and with the information required by the Company. The Company, following this written notification, will reconnect water service in accordance with IURC regulations and Company procedures for reconnection upon payment of a delinquent Company bill for general water services or as required by law. 7. Company I-labilify for User Fees. If the Company does not discontinue. service to a delinquent sewet user within the later of thirty (30) days after receiving notice from City, or the end of the next Company billing and disconnection cycle following such thirty (30) day period, the Company shall be liable to City for any user fees incurred from such date and that are not collected from the user, as provided by IC 36-9-25-11.5(f)- 8. Company Reimbursement Procedure_ The Company will record by water service address, fees to be recovered from the City related to the disconnection and K reconnection of service. The Company shall submit monthly to the City, no later than the 1 Vh business day of each month, an invoice reflecting the accumulated costs from the work records since the preceding monthly invoice. Payment of such fees shall be made by the City within thirty (30) days thereafter. 9. Excused Nonperformance. The Company shall not be liable for nonperformance under this Agreement caused by an employee work stoppage or other event or circumstances beyond its reasonable control. The Company shall promptly notify the City of any such occurrence and expected duration of any cause, which may affect its capability to perform this Agreement. 10. Responsibility for Claims. Except as provided by law in IC 36-9-25- 11.5(e), if a claim arising out of a disconnection or reconnection pursuant to this Agreement is made against the Company, or any director, officer, employee or agent thereof, the City shall indemnify and save harmless the Company and its aforesaid representatives and shall reimburse them for all expenses incurred by them in defending against such claim, including attorneys' fees and costs of litigation and any amounts for which they are found liable or which the Company or any of them, with the City's consent, pays in settlement of the claim. The City may, at its discretion, undertake the defense of any such claim made against the Company or its aforesaid representatives, in any event indemnifying and saving the Company and such persons harmless therefrom. 11. Nondiscrimination. Pursuant to Indiana Code 22-9-1-10, Indiana American, or any person acting on its behalf, shall not discriminate against any employee or applicant for employment to be employed in the performance of this Agreement, with respect to hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, religion, color, sex, disability, national origin, or ancestry. 12. Compliance with Indiana E-Verify Program Requirements Pursuant to Indiana Code 22-5-1.7, Contractor is required to enroll in and verify the work eligibility status of all newly hired employees of the contractor through the Indiana E-Verify program. Contractor is not required to verify the work eligibility status of all newly hired employees of the contractor through the Indiana E-Verify program if the Indiana E-Verify program no longer exists. Prior to the performance of this Agreement, Contractor shall provide to the City its signed Affidavit affirming that Contractor does not knowingly employ an unauthorized alien in accordance with IC 22-5-1.7-11 (a) (2). In the event Contractor violates IC 22-5-1.7 the Contractor shall be required to remedy the violation not later than thirty (30) days after the City notifies the Contractor of the violation. If Contractor fails to remedy the violation within the thirty (30) day period provided above, the City shall consider the Contractor to be in breach of this Agreement and this Agreement will be terminated. If the City determines that terminating this Agreement would be detrimental to the public interest or public property, the City may allow this Agreement to remain in effect until the City procures a new contractor. If this Agreement is terminated under this section, then pursuant to IC 22-5-1.7-13 (c) the Contractor will remain liable to the City for actual damages. 3 13. Notification and Notices. Each Party shall promptly notify the other Party in writing of any customer claim or complaint or any demand, notification or other legal process received by it affecting, or relating to, the performance of either Party under this Agreement. Such notification shall include a copy of the instrument embodying the claim, demand, notification or other process, if same if in writing. Any notice, demand or communication required herein or permitted hereunder shall be deemed to have been sufficiently given or served for all purposes if. (a) delivered personally to the Party or to an authorized representative of the Party to whom the same is directed; (b) sent by a nationally recognized overnight delivery service, charges prepaid; or (c) sent by certified mail (return receipt requested), postage and charges prepaid, in each case addressed as follows: If to the City: City of Richmond 50 North 5" Street Richmond, IN 47374 Attn: Mayor If to the Company: Indiana -American Water Company, Inc. 555 E. -County Line Road, Suite 201 Greenwood, IN 46143 Attn: Vice -President of Operations With a copy to: Indiana -American Water Company, Inc. 555 E. County Line Road, Suite 201 Greenwood, IN 46143 ATTN: Corporate Counsel or to such other address with respect to a Party as such Party shall notify the other in writing as above provided. Except as otherwise provided in this Agreement, any such notice shall be deemed to be given on the day personally delivered, one (1) day after the date on which the same was deposited with a nationally recognized overnight delivery service, or three (3) business days after the date on which the same was deposited in a regularly maintained receptacle for the deposit of United States mail, in each case addressed and sent as aforesaid. 14. City to Collect_ Amounts and Handle Complaints. All collection of amounts due by the sewer user, responses to customer inquiries about sewer service and amounts owed therefore, and disposition of customer complaints about sewer service and amounts owed therefore will be handled by the City, and the Company shall have no responsibility with respect thereto. 15. Assignment. This Agreement shall not be assigned in whole or part without the written consent of the other Party; provided, however, the Company may assign this Agreement without the City's consent if the successor in interest of the 4 Company is an affiliate of the Company or results from a merger or consolidation with another company or the sale or transfer of the Company's. utility system. 16. Independent Contractors. Both Parties agree that for all purposes of this Agreement, the Company shall be an independent contractor and not an employee of the City. 17. Amendments. All amendments to this Agreement must be agreed to in writing by both Parties and signed by a duly authorized officer of each Warty. 18. Entire Agreement. This Agreement contains the entire agreement among the Parties hereto with respect to the termination of water service to sewer users who are delinquent in the payment of sewer user fees, and supersedes all prior agreements and understandings between the Parties with respect to the subject matter thereof. 6 IN WITNESS WHEREOF, the Parties have duly executed this Agreement effective as of the day and year first above written. INDIANA-AMERICAN WATER CO., INC. By: 2 ce A. EC — Vice President of Operations THE CITY OF RICHMOND, INDIANA, by and through its Board of Sanitary Commissioners Richard Sodiker, President Gilbert Kiose, Vice President �Greg Member Date: it) " .� 3 to APPROVED: tl\�� 00f Sarah L. Hutton, Mayor Date: /0 U. Exhibit A CHARGES The Charge for each disconnection under this Agreement, including the corresponding reconnection, shall be $65.00, to be billed at the time of disconnection.