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					               APPROVED CONSOLIDATION AGREEMENT
   BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
       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, 14221

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 2010-949
(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 062011                      1
              APPROVED CONSOLIDATION AGREEMENT
  BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
  REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                            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 85.14 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 37.94 square miles some 70.85 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 062011                        2
              APPROVED CONSOLIDATION AGREEMENT
  BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
  REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                            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 (535.18 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         Sewer Line                        Manhole
                  Length         Replacement         Manholes        Replace
  District        (Feet)             Value           (number          value          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 062011                        3
              APPROVED CONSOLIDATION AGREEMENT
  BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
  REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                            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, 2010.
       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 062011                        4
               APPROVED CONSOLIDATION AGREEMENT
   BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
   REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                             Page 5

                                           Table 2
                                     Town Of Amherst
                            Existing & Proposed Sanitary Sewer
                                District Budgets & Revenues
                                            2011

                                                                                      (CSSD)
                                                                                     Proposed
  Budgeted/Proposed                                                 Disposal       Consolidated
   Costs & Revenues                 SSD1            SSD16             Plant        Sewer District
Capital Debt                        $394,441       $ 581,690       $ 2,948,519        $ 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                  33,675          996,247                  -         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, 2010. 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 062011                         5
              APPROVED CONSOLIDATION AGREEMENT
  BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
  REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                            Page 6

            .
                                          Table 3
                                    Town Of Amherst
                                   Existing & Proposed
                                 Sanitary Sewer Districts
                                Outstanding Debt Summary
                                           2011

                                                                             (CSSD) Proposed
                                                       Treatment               Consolidated
       SSD1                     SSD16                    Plant                 Sewer District
        $3,006,266                $3,392,669              $16,248,623              $22,647,558

  7.   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 16.

  9.   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 14221.




Approved Sewer Consolidation Agreement 062011                        6
                 JOINT CONSOLIDATION AGREEMENT
   BETWEEN THE TOWN OF AMHERST SANITARY SEWER DISTRICTS 1 and 16
   REGARDING THEIR CONSOLIDATION INTO A SINGLE DISTRICT (Continued)
                             Page 7

  5.   Re: Effective Date
       The effective date of the joint consolidation agreement is June 20, 2011. 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 062011                       7

				
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