HomeMy WebLinkAboutTWP 98 023 Agree - OCWA
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THE CORPORATION~OF
THE TOWNSHIP OF KINCARDINE
BY-LAW NO. 98-23
A By-Law authorizing the Corporation of THE TOWNSHIP OF
KINCARDINE to enter into an Agreement in the form annexed as
Schedule 'A' with the Ontario Clean Water Agency ('OCWA') with
respect to the operation and maintenance of the wastewater
facilities located in the Township of Kincardine.
WHEREAS under Subsection 10(2), Section 11 and Subsection
63(3) of the Ontario Water Resources Act, R.S.O., 1990, Chapter
0.40, as amended, OCWA may enter into agreements for the provision
of water service or sewage service and the Council of a
municipality may, by By-Law, authorize the municipality to enter
into an agreement with OCWA for the provision of water service or
sewage service to the municipality.
AND WHEREAS the Municipality wishes to enter into an
Agreement with OCWA providing for the operation and maintenance of
the wastewater facilities located in the Township of Kincardine,
which are owned by the Municipality.
NOW, THEREFORE, THE COUNCIL OF THE CORPORATION OF THE
TOWNSHIP OF KINCARDINE ENACTS AS FOLLOWS:
1. The Municipality does hereby authorize an Agreement, in the
form annexed hereto as Schedule 'A' (the 'Agreement'), with
OCWA for the operation and maintenance by OCWA of the Works
owned by the Municipality as described in Schedule 'A'
annexed to the Agreement;
2 . The Reeve and the Clerk-Treasurer be and they are hereby
authorized to execute the Agreement and any other documents
and agreements necessary or desirable to carry out the
intention of the Municipality and OCWA with respect to the
operation and maintenance of the Works by OCWA.
READ A FIRST AND SECOND TIME THIS 4TH DAY OF AUGUST, 1998.
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READ A THIRD TIME AND FINALLY PASSED THIS 4TH DAY OF AUGUST, 1998.
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SCHEDULE A
The F acilitv
· Part 1. Description of the Facility
For the purposes of this agreement, the Facility is comprised of the following:
A sanitary wastewater collection system, one sewage pumping station and associated forcemains.
Part 2. Legal Description of the Lands on which the Facility is Situated
The location of the Treatment Facility is as follows:
Part of Lot 20, R.P. 3R4448 Kincardine Twp.
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SCHEDULE B
The Services
For the purposes of this Agreement, the following services shall constitute the services to be
provided by oew A and are collectively referred to herein as "the Services" (Note: The
'0 following list is as complete as possible but may not be exhaustive):
1. Oueratinl! Duties
oew A will perform regularly scheduled inspections and carry out associated operational duties
at the Facility, including all related equipment, buildings and property to ensure that the Facility
is operating effectively. Specifically, oew A will:
Wastewater Collection
yearly, remove maintenancehole covers and inspect maintenanceholes for flow through,
debris accumulation, structural stability of walls, and rungs, infiltration and proper
benching;
flush maintenancehole and sewers once per year with hydrant water and remove sand and
debris;
routinely monitor wastewater collection system for infiltration, illegal connections and
illegal discharge of contaminants to system, and
sample raw wastewater routinely.
2.
Dav-to-Dav Maintenance
oew A will provide day-to-day maintenance of the Facility in accordance with industry
standards and equipment manufacturer's instructions. Specifically, oew A will:
carry out a routine lubrication program including greasing and oiling as specified in the
lubrication schedule;
perform maintenance duties to equipment by following the preventive measures
procedures; by checking machinery and electrical equipment when required and
overhauling of equipment;
maintain an inventory on all equipment and tools; and
ensure the security of the project by locking doors and gates;
3.
Cauital Imurovements
oew A will record information on the trequency of equipment breakdown and repair
costs to determine replacement needs. Parts of the Facility requiring upgrading or
improvement will be identified and brought to the attention of the Client in accordance
with section 4.2 of this Agreement.
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Outimization and Comuliance of Oueration
oew A will regularly analyze, investigate and implement measures to improve the
effectiveness and efficiency of the Facility.
oew A is responsible for ensuring an efficient operation of the process and keeping
records on a daily basis by:
Wastewater Collection
recording and analyzing wastewater flow, and electricity used;
calculating, recording, and analyzing the amount of the daily flows and monthly flows,
and pumping station running hours;
on a routine basis, completing the daily operating forms for statistics for computer input
and output forms and correcting the results of the output forms to ensure a proper
monitoring of plant flows and process;
collecting samples for bacterial and chernical analysis and ensuring that they are shipped
to the proper labs (analysis to ensure a representative analysis);
ensuring that the daily operations comply with and fulfill the requirements of the
Certificate of Approval and other legal documents; and
inspecting wastewater collection system for sources of infiltration or illegal discharge of
contaminants and working with client to resolve.
5.
Re¡rnlatorv Matters
oew A will handle day-to-day regulatory requirements and contacts with regulatory
authorities in respect of operating issues concerning the Facility. oew A will review any
inspection reports prepared by regulatory authorities that are provided to oew A.
Subject to any approvals of the Municipality required by section 4.2 of this Agreement,
oew A will either correct deficiencies identified in such inspection reports or negotiate
changes to the reports with the regulatory authorities.
6.
Staffinl!
oew A will staff the Facility with certified operators and other trained staff as required
by regulation under the Ontario Water Resources Act.
All oew A staff at the Facility will be trained for the normal process operation and
maintenance of the Facility and will also received training on how to deal with
emergency situations should they arise. Staff will continue to receive training on an
ongoing basis.
oew A staff will be available to provide 24 hour coverage at the Facility in the event of
emergencies.
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7.
Emerl!encv Situations and Safety
oew A will ensure that the Facility has a contingency plan in place to deal with
non-routine operational situations and emergency situations such as spills, by-passes,
overflows, hydro interruptions and equipment failure.
One of oew A's safety officers will regularly inspect the Facility and provide ongoing
safety training to staff.
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SCHEDULE C
The following services will not be provided by oew A and are considered to be
"Excluded Services" for the purposes of this Agreement:
installation of new sewer services;
cost for non routine sampling and lab analysis;
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SCHEDULE D
INSURANCE
A summary of the insurance coverage that oew A will arrange for in respect of the Facility is
described below:
ProuertvInsurance
Perils: "All Risks" including earthquake and flood. Subject to policy
exclusions.
Limits:
- $2,398,500,000 combined limit anyone loss, casualty, or disaster
- $2,398,500,000 annual aggregate of flood claims
- $2,398,500,000 annual aggregate of earthquake claims
- Replacement Value (Subject to Annual Reports)
- $25,000,000 for extra expenses above and beyond regular costs
associated with running the operation
- Extra expenses associated with shutting down the business for up to
six weeks on interruption by Civil Authority
Deductibles: All Perils
$2,500 except earthquake and flood
Earthquake - the greater of$lOO,OOO or 3%;
Flood - $25,000
Property Insured: All reported properties including buildings and equipment situated
within l,OOO feet of the prernises. Includes pumping stations,
excludes underground sewer and water system.
Boiler and Machinerv Insurance
Coverage:
Insures against loss or damage arising rrom an accident to scheduled
object in use or connected ready for use.
Objects:
Boilers, Pressure Vessels (Excess of l5PSI) Piping.
Accident:
Sudden and accidental breakdown of an object which causes it physical
damage, requiring its repair or replacement.
Subject to policy exclusions.
Limit: $10,000,000 per loss.
Deductible: $l,ooO.
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Automobile Insurance
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Coverage: Automobile Liability.
Limit:
$2,000,000
Accident Benefits per Ontario Statutes.
Coverage:
Collision
Deductible: $250
Coverage:
Comprehensive
Deductible: $lOO
Comurehensive General Liabilitv Insurance
Coverage: Third party liability including legal fees, for property damage and/or
bodily injury as caused by negligence arising out of all operations of the
insured.
Limit: $lO,OOO,ooO per occurrence.
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Deductible: $2,500
Pollution Liabilitv Insurance
Coverage: Pollution Legal Liability including third party bodily injury and property
damage. Remediation Expenses covering fIrst party clean up. Legal
Defense Costs including first and third parties.
Limit: $2,000,000 per loss on a Claims Made basis.
Deductible: $50,000.
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SERVICES AGREEMENT
THIS AGREEMENT made as of the l I $t. I day of lJ-_tl, 199[:ì]
. BETWEEN:
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ONTARlOCLEANWATERAGENCYfAGENCE ONTARIENNE
DES EAUX. a corporation established under the eauital Investment Plan
Act. 1993. chapter 23, Statutes of Ontario
(referred in this Agreement as "oew A")
AND
THE CORPORATION OF THE TOWNSHIP OF KINCARDINE
(referred in this Agreement as the "Client")
BACKGROUND TO THIS AGREEMENT:
(a)
Her Majesty the Queen in Right of Ontario, as represented by the Minister of the
Environment and its several predecessors in law (collectively referred to as the "Crown")
entered into various agreements (the "Existing Agreements") with the Client concerning
the operation and maintenance of a wastewater collection and pumping facility in the
Community ofInverhuron (as further described in Schedule A to this Agreement) (the
"Facility").
(b)
oew A is the successor in title to the Crown as a result of the Capital Investment Plan
Act. 1993.
(c)
The Client and oew A desire to enter into this Agreement for the purpose of further
clarifying and delineating their respective rights and obligations with respect to the
operation, payment and billing arrangements of and for the Facility.
The Council of the Client on the!/!!... day of ./J +"~ , 199Jr passed By-Law
No. qfj -.:I, ~ authorizing the Client to enter· this Agreement.
I (d)
NOW THEREFORE in consideration of the mutual covenants contained in this
Agreement and other good and valuable consideration the receipt and sufficiency of which is
hereby irrevocably acknowledged, the Client and oew A agree as follows:
ARTICLE 1 - INDEX TO DEFINITIONS
Section 1.1 - Defmitions
In this Agreement, the following terms are defined below or in the section in which they
first appear:
. "Actual Charges" is defined in Section 4.4 of this Agreement.
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"Agreement" means this agreement together with Schedules A, B and e attached hereto and all
amendments made hereto by written agreement between oew A and the Client.
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"Authorizatious" means each of the sewer use and water by-laws, licences, certificates of
approval, permits, consents and other authorizations required under any law, regulation, by-law
or government policy in order to operate the Facility ITom time to time.
"Authorized Representative" means each individual designated by either the Client or oew A
pursuant to Section 2.5 to be authorized to represent it for the purposes of this Agreement.
"Business Day" means a day other than a Saturday, Sunday or statutory holiday in Ontario.
"Capital Expenditures" means the charges for all capital items in relation to the Facility,
including new or replacement equipment, any overhaul or rebuild of equipment, any non-routine
repair; maintenance (excluding day-to-day maintenance); any alterations and any associated
installation, commissioning and preselection costs, together with oew A's service fee for
managing the project.
"Claim" means any claim, fine, penalty, liability, damages, (including, but not limited to,
damages for economic loss), loss and judgement, (including, but not limited to costs and
expenses incidental thereto) of any kind or nature whatsoever.
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"Current Term" is defined in Paragraph 4.6(b) of this Agreement.
"Estimate" is defined in Section 4.2 of this Agreement.
"Excluded Services" is defined in Section 2.3 of this Agreement.
"Existing Agreements" is defined in the Background to this Agreement.
"Facility" means the wastewater collection and pumping facility as defined in the Background
to this Agreement and further described in Schedule A to this Agreement.
"Indemnified Parties" is defined in Paragraph 3.3(a) of this Agreement.
"Initial Term" is defined in Section 4.l of this Agreement.
"Management Fee" is defined in Paragraph 4.6(a) of this Agreement.
, "Non-Terminating Party" is defined in Section 6.5 of this Agreement.
"Services" is defined in Section 2.1 and further described in Schedule B to this Agreement.
"Terminating Party" is defined in Section 6.5 of this Agreement.
"Uncontrollable Circumstance" is defined in Paragraph 2.2(c) of this Agreement.
"Unexpected Expenses" is defined in Section 4.7 of this Agreement.
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ARTICLE 2 - RESPONSffiILITIES OF OCWA
Section 2.1 - Retention of OCW A
The Client retains oew A to provide management, operation, administration and
maintenance services (as further described in Schedule "B" to this Agreement) in respect of the
Facility (the "Services").
Section 2.2 - Performance of Services
(a) oew A shall operate the Facility in compliance with all applicable laws, regulations and
Authorizations except as described in Paragraphs 2.2(b) and (c) below and in any of the
following circumstances:
(i) the Client not making the Capital Expenditures recommended by oew A in the
Estimate as described under Section 4.2 below;
(ii) mechanical failure of any equipment at the Facility unless the mechanical failure
is due to improper or inadequate maintenance by oew A;
(iii) the wastewater transmitted to the Facility for treatment does not meet the
requirements of the Client's sewer use by-law;
(iv) the quantity of wastewater transmitted to the Facility exceeds the Facility's
design capacity.
b) oew A may temporarily cease to provide or reduce, the level of provision of Services
hereunder in the event of an emergency, a breakdown or any other reason beyond the reasonable
controlofOeW A; provided, however, that oew A shall, when practicable, endeavour to give
the Client reasonable advance notice of each such occurrence.
c) Notwithstanding any other provision of this Agreement, delay in the performance of, or a
failure to perform any term of this Agreement by oew A, shall not constitute default under this
Agreement or give rise to any claim for damages suffered by the Client if and to the extent
caused by occurrences or circumstances beyond the control of oew A, including but not limited
to, decrees of government, acts of God (including but not limited to hurricanes, tornadoes, floods
and other weather disturbances), sabotage, strikes, lockouts and other industrial disturbances,
insurrections, war, civil disturbances, riots, explosions, fire and acts of third parties (any such
occurrence or circumstance is referred to as an "Uncontrollable Circumstance").
Section 2.3 - Excluded Services
For greater certainty, the services set out in Schedule e to this Agreement are specifically
excluded rrom the Services (the "Excluded Services"). If the Client subsequently requires
oew A to provide the Excluded Services, the Excluded Services may be provided at additional
cost to the Client.
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Section 2.4 - OCW A as Indeuendent Contractor
In performing the Services, oew A shall be acting as an independent contractor and only
to the extent and for the specific purposes expressly set forth herein. Neither oew A nor its
employees, agents or subcontractors shall be subject to the direction and control of the Client,
except as expressly provided in this Agreement.
Section 2.5 - Authorized Reuresentatives
Each of oew A and the Client shall be entitled to designate in writing to the other one or
more individuals who shall be authorized to represent it in connection with the day-to-day
administration of the provisions of this Agreement (the "Authorized Representatives"). Each of
the parties shall be entitled to rely on the acts and approvals given by the other party's Authorized
Representative until such time as it receives a written notification of change in the other party's
Authorized Representative.
Section 2.6 - Reuortinl!
oew A shall provide the following reports to the Client:
(a)
a facility performance report, within forty-five Business Days of the completion of each
calendar quarter or such other period as the Client and oew A may agree upon.
(b) a summarized financial report on a quarterly basis indicating expenditures to date and
funds remaining; and
(c) an annual report summarizing relevant activities and maintenance operations, actual
expenditures, laboratory analyses, and safety activities and any special studies.
Section 2.7 - Indemnification of the Client
oew A shall exonerate, indemnify and hold harmless the Client, its officers, employees
and agents rrom and against any and all Claims which may be suffered or incurred by, accrue
against or be charged to or recoverable ITom the Client that are caused by oew A's negligence or
wilful misconduct when performing the Services. The Client shall be deemed to hold the
provisions of this Section 2.7 that are for the benefit of the Client's officers, employees and
agents in trust for such officers, employees and agents as third party beneficiaries under this
Agreement.
Section 2.8 - Insurance
(a) OeWA shall arrange for insurance coverage of the Facility as described in Schedule D to
this Agreement and the Client shall be an additional insured under such coverage. If there is a
significant change in the insurance coverage described in Schedule D, the Client will be notified
of such change.
(b) The Client may, at its cost, maintain additional insurance in respect of the Facility if it
wishes and oew A shall be an additional insured under such insurance.
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( c) The Client shall be responsible for securing its own insurance for any operations with
which it is involved that are not the subject of this Agreement as it will have no recourse under
oew A's policies of insurance for any such operations.
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ARTICLE 3 - RESPONSIBILITIES OF THE CLIENT
Section 3.1 - Reuresentations and Warranties of the Client
The Client represents and warrants to oew A that:
(a) The Client has the full power and authority to enter into and perform its obligations under
this Agreement, including but not limited to, the power and the authority to pay the
Estimate, the Actual Charges, the Management Fee (as hereinafter defined) and any other
costs that oew A may incur in performing the Services, when due and payable under this
Agreement.
(b) The Client has passed all necessary by-laws and obtained all necessary Authorizations to
enable it to enter into and perform its obligations under this Agreement and to operate the
Facility, including without limitation, any Authorizations required rrom the Ontario
Municipal Board, and each of the Authorizations are in good standing.
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(c)
The Client has provided oew A with a true copy of each of the Authorizations referred to
in paragraph 3.1 (b) above, prior to the date of execution of this Agreement, including a
certified copy of each municipal by-law and other approval required to authorize the
Client to enter into and perform its obligations under this Agreement.
Section 3.2 - Covenants of the Client
The Client hereby covenants for the benefit of oew A:
(a) The Client agrees to promptly provide oeWA with any information relating to the
Facility which could have a bearing on the provision of Services by oew A.
(b) The Client shall repair, maintain and keep in a good working state in accordance with
good engineering practice, all wastewater works that belong to or are under the control of
the Client and that collect and transmit wastewater.
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(c)
The Client shall take reasonable steps to ensure that wastewater transmitted to the Facility
complies with the Client's sewer use by-law presently in force.
Section 3.3 - Indemnification of OCW A
(a) Subject to Paragraph 3.3(c) below, the Client shall exonerate, indemnify and hold
harmless oew A, its directors, officers, employees and agents and Her Majesty the Queen in
Right of Ontario, as represented by the Minister of the Environment and all officers, employees
and agents of the Ministry of the Environment (collectively referred to as the "Indemnified
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Parties") ûom and against any and all Claims which may be suffered or incurred by, accrue
against, or be charged to or recoverable ûom anyone or more of the Indemnified Parties that, in
any way, either arise ûom or are connected with the operation of this Agreement.
(b) oew A shall be deemed to hold the provision of this Section 3 that are for the benefit of
oew A's directors, officers, employees and agents and the other Indenmified Parties as defined
above, in trust for all such Indenmified Parties as third party beneficiaries under this Agreement.
(c) Notwithstanding the other provisions of this Section 3, the Client shall not be liable in
respect of any Claim:
(i) to the extent that such Claim is covered by a policy of insurance put in place by
OeWA and/or the Ministry of the Environment, the premiums of which
were paid for by the Client; or
(ii) where the Claim arose solely as the result of oew A's negligence or wilful
misconduct in providing the Services.
ARTICLE 4 - TERM. PAYMENT FOR SERVICES AND OTHER CHARGES
Section 4.1 - Initial Term of Al!reement
This Agreement shall begin on January 1, 1999 and shall continue in effect for an initial
term of three years (the "Initial Term") and then shall be renewed for successive three year terms
unless terminated under Section 6.2 of this Agreement.
Section 4.2 - Estimate
No later than September 30th of each year of the Initial Term, OeWA shall prepare and
submit to the Client, for its approval, an estimate of the charges associated with the provision of
the Services for the following calendar year including a list of the Capital Expenditures required
for the operation of the Facility for the following year. The Client will inform oew A no later
than December 1st whether the estimate is approved (the approved estimate is referred to as the
"Estimate"). The Estimate, once approved by the Client, shall be oew A's authorization to incur
the expenditures in the Estimate. The Estimate for the first year of the Initial Term is $6,900.
Section 4.3 - Payment of the Estimate
The Client shall pay oew A the Estimate for the Initial Term, in twelve monthly
payments, in advance on the first day of each month. Each monthly payment shall be $575.00.
The first payment shall be due and payable on January l, 1999. Payment shall be made by the
Client by pre-authorized debit rrom an account designated by the Client.
Section 4.4 - Reconciliation of the Estimate and Actual Charl!es
At the end of each calendar year, OCW A will determine the actual charges for providing
the Services to the Client for that year (the" Actual Charges"). If the Estimate paid by the Client
for the year exceeds the Actual Charges, OCW A will pay the Client the difference within thirty
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July 31, 1998
days of oew A making the determination. If the Actual Charges exceed the Estimate paid by the
Client, the Client shall pay oew A the difference within thirty days of oew A notifying the
Client in writing of the determination.
. Section 4.5 - Other Charl!es
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The Estimate, as reconciled with the Actual Charges, includes all charges associated with
providing the Services, except for the following:
(a) oew A's Management Fee (as described in Section 4.6 below); and
(b) Unexpected Expenses (as described in Section 4.7 below).
Section 4.6 - Manal!ement Fee
(a) In addition to payment of the Estimate, as reconciled with the Actual Charges, the Client
shall also pay OeWA a fixed annual management fee of$800 (the "Management Fee")
for every year of the Initial Term. The Management Fee shall be paid by the Client in
twelve equal monthly instalments at the same time and in the same manner as the
Estimate.
(b)
The Management Fee in any renewal term shall be as agreed by the Client and oew A.
If the Client and oew A cannot reach an agreement on the Management Fee for any
renewal term within six months of the beginning of the last year ofthe current term
(whether the Initial Term or a renewal term) (the "Current Term"), this Agreement will be
terminated six months ITom the last day of the Current Term. During this six month
period, the Client will pay the Management Fee paid for the last year of the Current
Term, as indicated above, pro-rated over the six month period.
(c) The Management Fee includes all additional charges prescribed by Regulation l57/93
under the Ontario Water Resources Act.
Section 4.7 - Unexuected Exuenses
(a)
"Unexpected Expenses" means unanticipated expenditures that oew A incurs in order to
address equipment failure, acts of third parties, or other circumstances beyond oew A's
reasonable control (such as unregulated septic dumping, illegal industrial waste
discharges and overflows), an emergency situation or any situation resulting ITom an
Uncontrollable Circumstance.
In the event that oew A is required to incur Unexpected Expenses, the prior approval of
the Client with respect to those Unexpected Expenses will be required only if time
permits. Within ten days of incurring the Unexpected Expenses oew A will provide the
Client with a report detailing the reasons the Unexpected Expenses were incurred and the
Client shall pay oew A for the Unexpected Expenses immediately upon receipt of an
invoice ITom oew A.
(b)
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, Section 4.8 - Interest on Late Payments
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(a)
"Prime Rate" means the rate of interest expressed as an annual percentage rate announced
rrom time to time by the Royal Bank as its reference rate then in effect for determining
interest rates on commercial demand loans in Canadian dollars made in Canada whether
or not any such loans are made by such bank on the day of determination.
(b) If the Client's monthly payment of the Estimate is not available in its designated bank
account on the agreed to date of payment, OCW A will notifY the Client that the funds
were not available. On the next Business Day, oew A will again attempt to withdraw the
monthly payment. If funds are not available when the second attempt to withdraw funds
is made, oew A will notifY the Client that the payment is late, and in addition to paying
the monthly payment owing to oew A, the Client shall pay OCW A interest at the Prime
Rate plus 3%. Interest shall accrue on a daily basis ITom the day after the second attempt
to withdraw funds is made.
(c) All late payments, other than those described in Paragraph 4.8(b) above, shall bear
interest at the Prime Rate plus 3%. Interest shall accrue on a daily basis ITom the date
after payment is due.
Section 4.9 - Partial Payment of Disuuted Invoices
If the Client disputes any portion of an invoice, the Client shall nonetheless pay to
oew A the undisputed portion of the invoice by the due date. If any additional amount is finally
determined to be payable to oew A, the Client shall pay oew A the additional amount, plus
interest as provided above in Paragraph 4.8( c) above, within ten days rrom the date of final
determination.
ARTICLE 5 - DISPUTE RESOLUTION
Section 5.1 - Arbitration
(a) If a dispute arises between the Client and oew A which cannot be resolved within a
reasonable time, the issue shall be determined by a sole arbitrator appointed by mutual
agreement between the Client and oew A. Failing agreement, the issue shall be
determined by a panel of three arbitrators: one arbitrator shall be appointed by the Client
and a second arbitrator shall be appointed by oew A. These two arbitrators shall appoint
a third, who shall chair the arbitration. The determination of the sole arbitrator or the
arbitration panel, as applicable, shall be final and binding upon OCW A and the Client
and there shall be no appeal rrom the determination.
(b) The arbitration shall be governed by the provisions of the Arbitrations Act.
ARTICLE 6 - EXISTING AGREEMENTS AND TERMINATION
Section 6.1 - Existinl! Al!Teements
(a) Any Existing Agreement between the Client and oew A shall remain in effect, except to
the extent it is inconsistent with this Agreement.
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(b)
Notwithstanding any other provision of this Agreement, all fmancial obligations of the
Client to oew A or predecessors of oew A under any Existing Agreement, including but
not limited to the obligation of the Client to pay oew A any outstanding debt owed in
respect of the Facility, shall remain in effect until such time (if applicable) that new
fmancing arrangements have been entered into between the Client and oew A.
Section 6.2 - Termination of Al!Teement
(a) At least twelve calendar months before the expiry of the Initial Term, the Client shall
notify oew A in writing whether it wishes to renew or terminate this Agreement at the
end of the Initial Term.
(b) During the Initial Term, this Agreement cannot be terminated by either the Client or
oeWA unless:
(i) there has been a material breach of the Agreement; and
(ii) the party complaining of the breach has given written notice of the breach to the
other party; and
(iii) the other party does not correct the breach within thirty days of receiving the
notice; and
(iv) after the thirty days referred to in paragraph (iii) above has expired, the party
complaining of the breach gives the other party six months written notice of
termination.
If either party disputes the existence of a breach or that the breach is material, the dispute
may be referred to arbitration under Section 5.l of this Agreement.
(c) After the Initial Term of this Agreement, either the Client or OeWA may terminate this
Agreement as follows:
(i) in accordance with Paragraph 4.6(b) of this Agreement;
(ii) for any reason, upon twelve months prior written notice; or
(iii) if there has been a material breach of the Agreement, in accordance with the
procedure described in Paragraph 6.2(b) above.
Section 6.3 - Final Settlement
IfoeWA ceases to operate and maintain the Facility, there shall be a final settlement of
all accounts with respect to the Actual Charge, the Management Fee and any other charges
incurred by oew A and amounts owing by the Client under this Agreement, no later than ninety
(90) days after oew A ceases to provide the Services.
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Section 6.4 - Earlv Termination
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If either party terminates this Agreement (referred to in this Section as the "Terminating
Party"):
(i) prior to the end of the Initial Term and the other party (the "Non-Terminating
Party") has not committed a material breach which has not been corrected as
described in Paragraph 6.2(b) above; or
(ii) in any renewal term and the Terminating Party does not give notice to the
Non-Terminating Party as required by Paragraph 6.2( c) above and there has not
been a material breach by the Non-Terminating Party which has not been
corrected as described in Paragraph 6.2(b);
then the Terminating Party shall be responsible for all costs incurred by the Non-Terminating
Party as a result of such termination.
ARTICLE 7 - GENERAL
Section 7.1 - Al!reement to Govern
If there is any inconsistency between this Agreement and any Schedule to this
Agreement, this Agreement shall govern.
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Section 7.2 - Headinl!s
The division of this Agreement into Articles, Sections and Paragraphs and the insertion of
headings are for convenience of reference only and will not affect the construction or interpre-
tation of this Agreement.
Section 7.3 - Entire Al!reement
This Agreement constitutes the entire agreement between the Client and oew A with
respect to the subject matter hereof and cancels and supersedes any prior understandings and
agreements between the Client and OCW A with respect thereto except for the provisions of any
Existing Agreements that remain in effect in accordance with Section 6.l of this
Agreement. There are no representations, warranties, terms, conditions, undertakings or
collateral agreements, express, implied or statutory, between the parties other than as expressly
set forth in this Agreement and in the provisions of the Existing Agreements which remain in
effect in accordance with Section 6.l of this Agreement.
, Section 7.4 - Amendments and Waivers
No amendment to this Agreement will be valid or binding unless it is in writing and duly
executed by both of the parties hereto. No waiver of any breach of any provision of this
Agreement will be effective or binding unless it is in writing and signed by the party purporting
to give such waiver and, unless otherwise provided, will be limited to the specific breach waived.
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July 31, 1998
Section 7.5 - Successors and Assims
This Agreement shall enure to the benefit of and be binding upon, the parties hereto and
their successors and assigns.
Section 7.6 - Survival
All representations, warranties and indemnities given by each of the parties, shall survive
indefinitely the termination of this Agreement.
Section 7.7 - Severabilitv
If any covenant, obligation or provision hereof or the application thereof to any person or
circumstance shall, to any extent be invalid or unenforceable, the remaining provisions or the
application of each provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall continue to be valid and enforceable.
Section 7.8 - Notices
Any notice, or other communication required or permitted to be given hereunder by either
party to this Agreement shall be in writing and shall be delivered in person, transmitted by fax or
sent by registered mail, addressed as follows:
(i)
ifto the Client:
Township of Kincardine
P.O.Box l4
R.R. #5
Kincardine, Ontario
N2Z 2X6
Clerk-Treasurer
Telephone:
Fax:
(519) 396-8100
(5l9) 396-8432
Attention:
(ii) if to OeWA:
Ontario Clean Water oew A
3508 Wonderland Road South
London, Ontario
N6L lA7
Telephone:
Fax:
(5l9) 652-7027
(519) 652-7020
Attention:
Vice President, Western Area
(b)
If delivered in person or transmitted by fax, any such notice or other communication shall
be deemed to have been given and received on the day on which it was delivered or
transmitted (or, ifsuch day is not a Business Day, on the next following Business Day).
(c) If mailed, any such notice or other communication shall be deemed to have been given
and received on the third Business Day following the date of mailing; provide, however,
that if at the time of mailing or within three Business Days afterwards a labour dispute or
other event occurs, which might reasonably be expected to disrupt the delivery of
documents by mail, any notice or other communication hereunder shall be delivered or
transmitted by fax as provided in this Section 7.9.
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July 31, 1998
(d)
A party to this Agreement may change its address for the purpose of this Section by
giving the other party notice of such change of address in the manner provided in this
Section.
Section 7.10 - Counteruarts
This Agreement may be executed in counterparts, each of which shall constitute an
original and all of which taken together shall constitute one and the same instrument.
IN WlTNESS WHEREOF the parties have duly executed this Agreement.
ONTARIO CLEAN WATER AGENCY
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Date f Signing
By: ¡í1; '1J~ Fausto Saponara
(Authorized Signatory) vp, BusIness DeveiopmeOI .
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Date of Signing
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(Authorized Signatory)
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By:
THE CORPORATION OF THE
TOWNSHIP OF KINCARDINE
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