INTERMUNICIPAL AGREEMENT
BETWEEN
FULTON COUNTY, CITY OF JOHNSTOWN COMMON COUNCIL
AND CITY OF JOHNSTOWN WATER BOARD

 

This Intermunicipal Agreement dated July 9, 2018 between the Fulton County Board of Supervisors having its principal office at 223 West Main Street, Johnstown, NY 12095, hereinafter referred to as COUNTY and the City of Johnstown Common Council having its principal offices at 33-41 East Main Street, Johnstown, NY 12095 hereinafter referred to as CITY and the City of Johnstown Water Board having its principal offices at 27 East Main Street, Johnstown, NY 12095, hereinafter referred to as WATER BOARD.

WHEREAS, the COUNTY created the Fulton County Water and Sewer Agency to develop COUNTY Water and Sewer Districts, and

WHEREAS, the Fulton County Water and Sewer Agency is the Fulton County Board of Supervisors, and WHEREAS, the COUNTY desires to create a regional water system and to do so needs water capacity, and

WHEREAS, the WATER BOARD has developed an outstanding water supply and distribution system, and

WHEREAS, the COUNTY desires to purchase water from the CITY and WATER BOARD to develop and operate a regional water system, and WHEREAS, the CITY and WATER BOARD desire to sell some of its excess water capacity to the COUNTY to develop a regional water system, and

WHEREAS, General Municipal Law, Article 5-G authorizes municipalities to enter into Intermunicipal Agreements, and WHEREAS, General Municipal Law, Section 118-a authorizes municipalities to execute Water Supply Agreements up to 40 years in length. Now, therefore by mutual consent of the COUNTY, CITY, and WATER BOARD it is agreed as follows:

 

I. CITY RESPONSIBILITIES:

A. Water:

  1. The CITY shall supply up to 200,000 gallons of water per day, on a 30-day average, to the Fulton County Water and Sewer Agency to use anywhere within Fulton County. (See Exhibit 1.)
  2. The CITY agrees to terminate the existing 2005 Water Supply Agreement between the COUNTY, CITY and WATER BOARD effective on the date of this InterMunicipal Agreement.

B. Sewer:

  1. In accordance with Section 13 of the Gloversville-Johnstown Joint Sewer Contract dated May 22, 1964, as has been and may be further amended, the CITY hereby approves allowing the COUNTY to extend CITY sewer lines outside the CITY to any property in the COUNTY.

C. Miscellaneous:

  1. The CITY shall support applications for grant/loan funding the COUNTY may apply for to help pay for the cost of installing new water infrastructure within the COUNTY.
II. WATER BOARD RESPONSIBILITIES:

A. Water Supply:

  1. The WATER BOARD shall supply up to 200,000 gallons of water per day, on a 30-day average, to the Fulton County Water and Sewer Agency to use anywhere within Fulton County.
  2. The WATER BOARD agrees to terminate the existing 2005 Water Supply Agreement between the COUNTY, CITY and WATER BOARD effective on the date of this InterMunicipal Agreement.

B Water Infrastructure:

  1. On the first day of the month following the execution of this Agreement, the WATER BOARD shall take over ownership and operation and maintenance responsibilities of the existing waterline, pump station, elevated tank, valves and hydrants servicing Fulton County Water District No. 1. This includes meter readings and billing of existing customers.
  2. The WATER BOARD shall, after the 1-year warranty has expired on any new water infrastructure installed by the COUNTY for water services stemming from the water supply from the WATER BOARD, take over ownership of this new infrastructure. Water infrastructure includes waterlines, valves, hydrants, pumps, pump stations, water storage tanks and related items transporting water the COUNTY purchases from the WATER BOARD.
  3. The WATER BOARD shall be responsible for the operation, maintenance, repair and cost of all new water infrastructure installed by the Fulton County Water and Sewer Agency for water services stemming from the water supply from the CITY.
  4. The WATER BOARD agrees that once the COUNTY turns over ownership of water infrastructure to the WATER BOARD, the COUNTY shall retain the sole right to utilize said infrastructure for the purpose of adding additional customers within the COUNTY.

C. Water Rates:

  1. The WATER BOARD shall immediately begin charging customers of the Fulton County Water and Sewer Agency the in-City rate charged to residential customers within the CITY plus an additional rate equal to 7.5% of the in-City rate to cover additional testing costs the WATER BOARD may incur.
  2. The WATER BOARD shall, by Resolution, from time to time, establish in-City water rates for residential and industrial water users.

D. Meter Reading:

  1. The WATER BOARD shall read all water meters of COUNTY customers on water lines installed by the COUNTY through which water is being transported that was purchased from the WATER BOARD.
  2. The WATER BOARD shall read the meters at the frequency needed to prepare regular water usage invoicing to all COUNTY customers.
  3. The WATER BOARD shall submit to the COUNTY a copy of the readings obtained for all COUNTY customers. 4. If the WATER BOARD determines an error was made in any water meter reading, it shall notify the COUNTY of said error and all corrections made by the WATER BOARD.

E. Billing/Invoice:

  1. The WATER BOARD shall prepare and mail regular bills/invoices to all COUNTY customers based upon the meter readings taken by the WATER BOARD.
  2. The WATER BOARD shall add to the In-City rate included in all regular bills/invoices to COUNTY customers: a. A Surcharge of 7.5% of the in-City rate payable to the WATER BOARD identified in Section II, Subsection C, Paragraph 1 of this Agreement. b. An Administrative Surcharge, payable to the CITY, identified in Section III, Subsection D, Paragraph 1 of this Agreement.
  3. The WATER BOARD shall bill/invoice COUNTY customers at the same frequency it bills/invoices in-City customers.
  4. The WATER BOARD shall, within 30 days of its receipt of payments due from COUNTY customers, submit to the CITY the revenue generated by the Administrative Surcharge identified in Section III, Subsection C, Paragraph 1 of this Agreement.

F. Water Taps:

  1. All taps of waterlines installed by the COUNTY for COUNTY customers where said customer shall receive water from the City’s water supply, shall be made by the WATER BOARD.
  2. The cost of these taps shall be paid for by the COUNTY’s customers to the WATER BOARD.
  3. All taps shall be completed in accordance with the WATER BOARD’s rules and regulations.

G. Water Testing:

  1.  All testing of water in any water infrastructure installed by the COUNTY required by the NYS Department of Health or other federal or State agency shall be performed and paid for by the WATER BOARD.
  2. The WATER BOARD shall provide the COUNTY with access to all test results on all water tests performed on water taken from water infrastructure installed by the COUNTY. The WATER BOARD shall within 30 days provide the COUNTY with copies of any test results requested by the COUNTY.

H. Rules and Regulations

  1.  All COUNTY customers shall comply with all of the WATER BOARD’s rules and regulations as promulgated by the WATER BOARD

I. Miscellaneous:

  1. If, in the joint opinion of the WATER BOARD and COUNTY, an upgrade to the WATER BOARD’s water infrastructure is required to allow the WATER BOARD to continue to provide water service to the COUNTY, the cost of that upgrade will be paid for by the COUNTY. The WATER BOARD shall provide at least 180 days written notice to the COUNTY of the need to make said upgrade to continue to service the COUNTY. Written notice shall include engineering and financial information adequate for COUNTY to review to ensure the necessity and cost of the upgrade.
  2. The WATER BOARD shall support applications for grant/loan funding the COUNTY may apply for to help pay for the cost of installing new water infrastructure.
  3. The WATER BOARD, its employees or representatives, may, at any time, be able to inspect all water infrastructure installed by the COUNTY that is transmitting water the COUNTY purchased from the WATER BOARD.
  4. Notwithstanding anything to the contrary in this Agreement, the WATER BOARD reserves the right to temporarily reduce the volume of water available to the COUNTY because of:
         a) Conditions of drought
         b) Acts of God
         c) Emergency The WATER BOARD shall provide 45-day written notice in advance of any temporary reduction of the total amount of water available to the COUNTY.
  5. In the event of drought conditions, the WATER BOARD shall implement water conservation measures to help preserve the excess capacity in the water system.
  6. The WATER BOARD shall allow the COUNTY to connect into its water system at any location.
III. COUNTY RESPONSIBILITIES:

 A. Water Infrastructure:

  1. The COUNTY shall be responsible for the design, construction and cost of all new water infrastructure the COUNTY shall install including water lines, valves, meters, hydrants, pumps and tanks. All design plans shall be prepared by a NYS Licensed Professional Engineer.
  2. All design plans for water infrastructure to be installed by the COUNTY shall be submitted to the WATER BOARD.
  3. All design plans for water infrastructure shall be submitted to the NYS Department of Health, or its successor, for their review and approval.
  4. All water infrastructure installed by the COUNTY shall be of the type, make and model standardized by the WATER BOARD.
  5. All COUNTY customers shall have a water meter installed in a location designated by the WATER BOARD.
  6. The COUNTY shall meet with the WATER BOARD as needed to discuss future plans for installing new water infrastructure.
  7. The COUNTY agrees to terminate the existing 2005 Water Supply Agreement between the COUNTY, the CITY and WATER BOARD effective on the date of this InterMunicipal Agreement.

B. Water Districts:

  1. The COUNTY shall be responsible for the cost of preparing any Map, Plan and Reports that may be required for the creation of County Water Districts.
  2. The COUNTY shall be responsible for creating, operating and managing County Water Districts.
  3. The COUNTY shall provide the WATER BOARD with a map of all County Water Districts created and a complete listing of all properties in the District.

C. Revenue to CITY by COUNTY:

  1. The COUNTY shall provide the CITY with one and one-half percent (1.5%) of the COUNTY’s undistributed portion of the 1% Additional County Sales Tax imposed in 2005.
  2. In the event New York State does not renew the COUNTY’s authority to charge the 1% sales taxes referenced in Paragraph 1 above, the COUNTY shall calculate what its undistributed portion of the “1% additional sales tax would have been for the previous calendar year as if said tax were in place. This calculated amount shall become the “Base Figure” for that year. Using the “Base Figure”, the COUNTY shall make a payment to the CITY equal to one and one-half percent (1.5%) of the “Base Figure” from other COUNTY budget appropriations.
  3. The revenue described in Paragraph 1 or 2 above shall be paid to the CITY within 60 days of the COUNTY’s receipt of a calendar year’s 4th quarter sales tax revenues collected on its behalf by the State of New York or by April 1 of each year, whichever is sooner.
  4. The CITY’s Treasurer shall have access to any and all information and documents in connection with this revenue.

D. Administrative Surcharge:

  1. The COUNTY agrees to have the WATER BOARD add an Administrative Surcharge equal to 17% of the In-City rate charged to COUNTY customers.
  2. The revenue from the Administrative Surcharge shall be paid by the WATER BOARD to the CITY.

E. Property Tax Exemption:

  1. The COUNTY shall provide a 50% exemption from COUNTY property taxes on watershed properties currently owned by the CITY and WATER BOARD. (See Exhibit 2.)
  2. This exemption shall apply only to the parcels identified in Exhibit 2 and any improvements thereon located.
  3. The 50% exemption shall remain in full effect for the full 40-year term of Agreement.

F. 1989 Intermunicipal Agreement Between City of Johnstown and Town of Johnstown:

  1. The COUNTY shall pay the cost of extending CITY water and sewer lines under and to the east side of NYS Route 30A to service tax parcel 174.-2-64 in the Town of Johnstown as stipulated in the 1989 Intermunicipal Agreement between the City of Johnstown and Town of Johnstown. A copy of this 1989 Intermunicipal Agreement is attached as Exhibit 3.
  2. The COUNTY shall undertake the extension of these water and sewer lines when a development project has been approved for this parcel by the Town of Johnstown.
IV. SEVERABILITY:

A. If any portion of this Agreement is held to be illegal, invalid or unenforceable in whole or in part, by a court of competent jurisdiction, the validity and enforceability of the remaining provisions of the Agreement shall not be affected or impaired.

V. TERM:

A. The term of this Agreement shall be forty (40) years. This Agreement shall be effective June 1, 2018 and terminate on December 31, 2058. B. The term of this Agreement may be extended upon mutual written consent of all parties to this Agreement.

VI. AMENDMENTS:

A. No provision of this Agreement shall be changed, altered or deleted without the written consent of all parties to this Agreement.

IN WITNESS THEREOF, the parties hereto have signed their hands by their duly authorized representatives as of the 9th day of July, 2018.

CITY: VERN JACKSON, APPROVED AS TO FORM:MICHAEL POULIN, CITY ATTORNEY
WATER BOARD: GEORGE DIMARCO, PRESIDENT
COUNTY: JAMES GROFF, CHAIRMAN, APPROVED AS TO FORM: JASON BROTT, COUNTY ATTORNEY