[Adopted 12-4-1958 by Ord. No. 794 (Appendix, Part VII, Art. IV, of the 1966 Code)]
The Borough of Clearfield shall transfer and convey to the Authority, by deed or instrument of transfer in such form as may be approved by the Borough Solicitor, the existing interceptor sewers within the Borough, consisting of an interceptor sewer on the east side of the Susquehanna River, extending from Elizabeth Street to below Bridge Street and an interceptor sewer on the west side of said river, extending from Patterson Street to below Legislative Route 17051.
A. 
The Borough of Clearfield shall enter into a service agreement dated as of January 1, 1959, substantially in the form presented at this meeting, between the Authority and the Borough and the township, whereunder the Authority will agree, out of the proceeds of said bonds, to construct said sewer project in accordance with said plans and specifications of said engineers, and will agree to furnish sewage disposal and treatment service, and also to treat industrial and other wastes subject to certain limitations; and under which, among other things, the Borough and the township will jointly and severally agree to pay to the Authority fixed semiannual payments of $63,000 on or before November 15, 1960, and on or before each May 15 and November 15 thereafter, including November 15, 1998, together with amounts sufficient to pay the costs and expenses of operation, insurance, maintenance and repair, and general and administration expenses; and will covenant and agree to charge and impose and to collect or cause to be collected sewage charges sufficient, together with state subsidy payments received by the Authority, to pay in each year.
(1) 
Said fixed semiannual payments.
(2) 
Said costs and expenses of operation, insurance, maintenance and repair, and general and administration expenses.
(3) 
Sufficient also to establish an annual margin of safety of not less than 5% of said fixed payments.
B. 
Said service agreement shall also provide for the conditions under which sewage charges may be revised or reduced, for a covenant on the part of the Borough and the township to provide for deficits out of other available revenues or to increase sewage charges, for the appointment of the Authority as the agent of the Borough and the township to collect sewage charges, to deposit sewage charges collected in a separate Sewer Revenue Account and to apply the money therein for the purpose of paying said fixed semiannual charges, paying said costs and expenses of operation, insurance, maintenance and repair, and general and administration expenses, making deposits in the Construction Fund, if necessary to complete said sewer project, maintaining working capital and paying balances from time to time to the trustee for deposit in the Bond Redemption and Improvement Fund under the indenture. Said service agreement shall also provide, among other things, for the filing of an application for state subsidy payments, for amendments in case of additional financing, for the employment of consulting engineers and for the consent of the Borough and the township to the assignment of the fixed payments to the trustee.
The President of Borough Council, the Mayor and the Borough Secretary are hereby directed to execute said service agreement on behalf of the Borough substantially on the form presented at this meeting, and the proper officers of the Borough are hereby authorized and empowered to execute all such other papers and documents and to do such other acts as may be necessary or proper to carry out the purpose and intent of this ordinance and the covenants and agreements of the Borough contained in said service agreement.
As required by the indenture and said service agreement, the Borough Council shall forthwith enact a Sewage Charge Ordinance, fixing and charging sewage charges in accordance with the recommendations of said engineers.
The Authority, as agent of the Borough, is hereby authorized as provided in said service agreement to collect the sewage charges fixed and imposed by the Borough in said Sewage Charge Ordinance, to deposit said sewage charges as and when collected in said Sewer Revenue Account and to apply the same as provided in said service agreement.
The form of service agreement as presented to this meeting is hereby approved and a copy thereof is hereby directed to be filed with the Borough Secretary for inspection by any interested parties.
The plans and specifications of Hill and Hill Engineers for said sewer project are hereby approved.