APPROVED CONSOLIDATION AGREEMENT BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16 REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT

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1 REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT This Agreement ("the Agreement ) is entered into this day of, 2011, between the Town of Amherst Sanitary Sewer District 1 (hereinafter SSD 1 ) and Town of Amherst Sanitary Sewer District 16 (hereinafter SSD 16 ), Special Districts within the Town of Amherst, New York with a mailing address of 5583 Main Street, Amherst, New York, WITNESSETH: WHEREAS, SSD 1 and SSD 16 were duly formed and from time to time extended in accordance with New York State Town Law; and WHEREAS, the purpose of SSD 1 and SSD 16 is to prevent contamination of water supplies and provide for the health, welfare and safety of the residents of the Town of Amherst and certain adjacent communities by collecting, transporting and treating wastewater from the community s neighborhoods and business districts; and WHEREAS, the purpose of SSD 16 includes the operation and maintenance of a wastewater treatment facility for the removal of biological and chemical contaminants in accordance with a New York State Department of Environmental Conservation s Discharge Permit; and WHEREAS, New York State General Municipal Law Article 17-A, Section 751 provides that two or more local governmental entities may be consolidated into a single local governmental entity if together the consolidated local government entity forms a local government entity of a kind or class that is authorized under the laws of the State of New York; and WHEREAS, the Amherst Town Board has the overall authority for managing the operation, maintenance and finances of each sanitary sewer district serving the Town; and WHEREAS, after their review, the Town of Amherst Citizen s Advisory Committee recommended that the SSD 1 and SSD 16 be consolidated; and WHEREAS, on September 20, 2010, the Amherst Town Board adopted Resolution (Merging Sanitary Sewer Districts) directing the preparation of an agreement for the consolidation of SSD 1 and SSD 16; NOW THEREFORE, the Town Board of the Town of Amherst, acting as the governing body of SSD 1 and SSD 16, finds and agrees as follows: 1. Re: Naming The name of the proposed consolidated sanitary sewer district shall be Town of Amherst Consolidated Sanitary Sewer District (hereinafter CSSD ). Approved Sewer Consolidation Agreement

2 Page 2 2. Re: Rights, Duties and Functions of Existing and Consolidated District In accordance with New York State Town Law, SSD 1 and SSD 16 were established by the Amherst Town Board for the purpose of conveying and disposing, or conveying, treating and disposing of wastewater generated within designated areas of the Town. More specifically the districts: a) establish standards for the addition, upgrading and maintenance of sewer infrastructure b) approve and oversee construction of new sewer infrastructure by third parties c) manage contracts to replace and upgrade existing sewer infrastructure d) oversee/perform maintenance on exiting facilities e) monitor the condition of sewer infrastructure f) establish priorities and budget estimates for sewer infrastructure improvements g) operate lift stations h) maintain and operate a tertiary sewer treatment plant i) ensure compliance with environmental regulations and permits j) develop district s operating and capital budget k) coordinate budget development with the Town of Amherst s capital and operating budget The CSSD will perform these duties and functions in the same manner as the two existing districts. 3. Re: Description of the Jurisdictional Area of Existing and Consolidated Districts In total, approximately percent (45.59 square miles) of the Town of Amherst is within SSD 1 or SSD 16. SSD 1 serves intensive development generally located south of Maple Road west of Interstate Route 290 (Youngmann Expressway), south of Sheridan Drive east of Route 290 and west of North Forest Road. This district services 7.65 square miles (14.29 %) of the Town. With the exception of the Village of Williamsville and a large area in the northeast corner of the Town, SSD 16 provides sewer collection and management services to an area of square miles some percent of Amherst. The remaining 7.96 square miles (14.86%) of the Town are not within a sanitary sewer district. Both districts transport raw wastewater to a tertiary sewerage treatment located on the south side of Tonawanda Creek Road approximately one mile east of Niagara Falls Boulevard. The plant is rated to treat approximately 35 million gallons of wastewater per day. The CSSD will provide wastewater collection and management services for the same geographic area currently served by SSD 1 and SSD 16. In addition, all wastewater flows currently sent to the existing wastewater treatment plant will continue to be transported to that facility. No changes to sewer service areas will be made in the process of consolidation. Appendix A entitled Existing and Consolidated Sanitary Sewer District - Town of Amherst attached hereto and made part of this agreement shows the areas served by SSD 1 and SSD 16 as well as the service area of the CSSD. The map (Appendix A ) also includes the location of the wastewater treatment plant. Approved Sewer Consolidation Agreement

3 Page 3 4. Re: the governmental (administrative) organization of each district including a transitional plan and schedule for appointment of officials SSD 1and SSD 16 are governed by the Amherst Town Board. That Board is responsible for all policy, upper level management and financial decisions for both districts. In that role, they approve the Capital Improvement Program and funding decisions related to capital projects and operations and maintenance. On the operational level, the Board approves contracts necessary for third-party contractors to provide services and undertake system improvements. The Engineering Department is responsible for carrying out the day-to-day operation of and improvement to the districts facilities including the wastewater treatment plant. The operations include but are not limited to ensuring that all facilities are functioning in accordance with their design, repairing or replacing substandard facilities, and soliciting contractor assistance in replacing or repairing major wastewater collection and treatment facilities. The department also plays a critical role in the development of operating budget proposals for Town Board consideration. The Amherst Town Board and the Town Engineering Department will perform the identical roles for the CSSD. No additional authority or responsibility will be required of either entity. 5. Re: inventory of districts assets and estimate of current value Table 1 (Town of Amherst Inventory of Sanitary Sewer Facilities By District & Proposed Consolidated Sewer District 2011) provides a breakdown of the quantity and replacement costs of SSD 1 and SSD16 components. In total, the districts own and maintain 2,825,757 lineal feet ( miles) of sewer line valued at $327,788,130. In addition, the districts own and maintain 12,903 manholes with a total replacement value of $36,128,400. The total combined value of the facilities in the districts is $363,916,530. Under the agreement, the proposed CSSD will own and maintain all of these assets at their current value. None of SSD 1 and SSD 16 assets will be disposed of and no other assets will be added to the CSSD. Table 3 Town Of Amherst Inventory of Sanitary Sewer Facilities By District & Proposed Consolidated Sanitary Sewer District 2011 Sewer Line Length (Feet) Sewer Line Replacement Value Manhole Replace value Manholes District (number Total Value SSD 1 744,205 $ 80,164,740 3,192 $ 8,937,600 $ 89,102,340 SSD16 2,081,522 $ 247,623,390 9,711 $27,190,800 $274,814,190 Total Value 2,825,757 $327,788,130 12,903 $36,128,400 $363,916,530 Approved Sewer Consolidation Agreement

4 Page 4 6. Re: statement of districts financial condition including liabilities and indebtedness Budget allocations and revenue estimates have been extracted from the Town of Amherst 2011 Adopted Budget while Outstanding Debt has been calculated for each district based on the outstanding Bond and Bond Anticipation Note Principal Balances as of December 31, a) Table 2 entitled Town of Amherst Existing & Sanitary Sewer District Budgets and Revenue 2011, presents the budget expenditures and anticipated revenues for SSD 1, SSD 16 and the wastewater treatment plant. In addition, it presents the anticipated budget for the (CSSD). Capital appropriations for the existing districts total $3,130,228 while maintenance appropriations amount to $12,741,309. Total appropriations for the districts are therefore $15,871,479. Total appropriations for the CSSD will also be $15,871,479. No increases in capital and maintenance costs will accrue from the consolidation. In addition, revenues and appropriations from the fund balances will remain at current levels. The amount of the capital and maintenance costs raised in taxes will also remain at the current levels. Approved Sewer Consolidation Agreement

5 Page 5 Table 2 Town Of Amherst Existing & Proposed Sanitary Sewer District Budgets & Revenues 2011 Budgeted/Proposed Costs & Revenues SSD1 SSD16 Capital Debt $394,441 $ 581,690 Disposal Plant $ 2,948,519 (CSSD) Proposed Consolidated Sewer District $ 3,924,710 Water Pollution Debt (WWTP G9916) 546,419 1,639,257 (2,923,012) (737,336) Debt Reserve - (11,038) (25,506) (36,544) Capital Revenues 2,940 17,662-20,602 Total Capital Levy $ 937,920 $ 2,192,248 $(0) $ 3,130,228 Maintenance $1,949,698 $ 2,237,004 $10,953,583 $15,140,285 Appropriation Disposal Plant O & M 2,560,094 7,680,283 (10,953,583) (713,206) Maintenance Revenues 33, ,247-1,029,922 Appropriated Fund Balance (289,125) (366,723) - (655,848 Total Maintenance Levy $4,186,993 $8,554,317 - $12,741,309 Total Appropriations $5,124,913 $10,746,566 (0) $15,871,479 Note: Budget allocations and estimated revenues are from the Town of Amherst 2011 Adopted Budget b) Table 3 entitled Town of Amherst Existing & Sanitary Sewer District Outstanding Debt Summary 2011, presents the Outstanding Principal on Bonds and Bond Anticipation Notes as of December 31, The total outstanding principal balance on these bonds and notes for SSD1, SSD 16 and the treatment plant is $22,647,558. The Town of Amherst Consolidated Drainage District (CSSD) will assume full responsibility for bond amortization payments on these bonds and notes up to the amount of $22,647,558. No additional bonded indebtedness will be incurred as a result of the consolidation. Approved Sewer Consolidation Agreement

6 Page 6. Table 3 Town Of Amherst Existing & Proposed Sanitary Sewer Districts Outstanding Debt Summary 2011 (CSSD) Proposed SSD1 SSD16 Treatment Plant Consolidated Sewer District $3,006,266 $3,392,669 $16,248,623 $22,647, Re: terms of the disposition of assets, liabilities and indebtedness The assets, liabilities and indebtedness of SSD 1 and SSD 16 as described herein will become the assets, liabilities for the CSSD. No assets will be acquired or disposed of in the course of the consolidation. All existing liabilities and indebtedness as described herein will become the liabilities and indebtedness of the CSSD. 8. Re: terms for the administration and enforcement of regulations Ensuring the proper administration and the enforcement of regulations that apply to the financing, accounting, operation and maintenance of SSD 1 and SSD 16 is the responsibility of the Amherst Town Board. Specific operations and maintenance tasks necessary for compliance with applicable regulations are the responsibility of the Town of Amherst Engineering Department. The Town Board and the Town of Amherst Engineering Department will continue to exercise the responsibilities for the administration and enforcement of regulations in the manner currently employed for SSD 1 and SSD Re: estimate of cost savings accruing from consolidation No additional costs will accrue from the consolidation of SSD 1 and SSD 16. No cost savings associated with the consolidation have been calculated although an undetermined amount of administrative cost savings are expected. Such saving would result from the elimination of duplication of administrative costs associated with planning, budgeting and accounting. 10. Re: Public Hearing A public hearing on the endorsed joint consolidation agreement was held on Monday, June 20, 2011 at 7:00 p.m. in the Amherst Town Hall, 5583 Main Street, Williamsville, New York Approved Sewer Consolidation Agreement

7 JOINT CONSOLIDATION AGREEMENT Page 7 5. Re: Effective Date The effective date of the joint consolidation agreement is June 20, Property taxes for the Town of Amherst Consolidated Drainage District will be levied in the January 2012 Property Tax Bill. In witness whereof, Town of Amherst acting in the capacity of the duly authorized governing body for SSD 1 and SSD 16 hereby executes this agreement on the date set forth below. Town of Amherst By: Barry A. Weinstein, Supervisor Date: State of New York ) County of Erie ) SS.: On this day of, 2011, before me, the undersigned personally appeared, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. Approved Sewer Consolidation Agreement

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