AGREEMENT FOR THE SALE AND PURCHASE OF POTABLE WATER
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AGREEMENT
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THIS AGREEMENT, made and entered into as ofthe ;>1 day of f ~
2005, by and between PINELLAS COUNTY, a political subdivision ofthe State of Florida, acting
by and through its Board of County Commissioners (hereinafter referred to as "COUNTY") and the
CITY OF CLEAR WATER, FLORIDA, a municipal corporation within said Pinellas County, acting
by and through its CITY Commission (hereinafter referred to as "CITY").
WITNESSETH:
WHEREAS, COUNTY and CITY have previously contracted for the sale and purchase of
potable waterto serve customers in CITY's water service area; and
WHEREAS, CITY, to insure an adequate supply of potable water for distribution to its
citizens, desires to continue to purchase from COUNTY, a supply of potable water which COUNTY
is able to furnish from and through its water supply transmission system; and
NOW, THEREFORE, in consideration ofthe monies hereinafter agreed to be paid and the
mutual covenants contained herein, the parties hereby mutually agree as follows:
1. COUNTY agrees to furnish CITY up to 15 MGD yearly average of water for its use
and for redistribution in its water service area, as shown on the attached sketch and
marked as Exhibit "B" and incorporated herein by reference.
2. CITY shall have the exclusive right to distribute and make available water service to
the customers within its water service area, as described in Exhibit "B", and may
purchase from COUNTY potable water required to serve the customers within the
designated area. At any point during the term of the Agreement, that the CITY
determines to provide water for themselves or otherwise obtains a portion of their
potable water needs from sources other than the COUNTY and the COUNTY
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remains on a standby status to the CITY, for that portion obtained elsewhere, the
CITY will be charged a standby fee, that will be determined at the time the CITY
obtains water from other sources.
3. The CITY will utilize the connections located as noted in Exhibit "A" or other
locations mutually agreed to by COUNTY and CITY.
4. The CITY and the COUNTY agree to maintain an effective cross connection control
program in accordance with Federal, State and Local regulations, Safe Drinking
Water Acts, FAC62-555.360 and patterned of COUNTY's Cross Connection
Ordinance No. 77-11 and Pinellas County Code, Division 3, Cross Connection
Control, Sec. 126-231 thru Sec. 126-244. Should any contamination or possibility of
contamination occur in either party's water system, or should any other situation
occur in either party's system that would in any manner contaminate the other party's
water supply, the causing party will be responsible for any damage to the other
party's water system which occurs from such conditions and shall immediately
correct the cause of such contamination, take all necessary precautions to insure the
protection of the other party's water supply and water system, and shall, if possible,
within thirty (30) minutes of knowledge of such occurrence, notify the office ofthe
other's party's Director of Utilities. If the CITY does not provide an ongoing cross
connection control program, the COUNTY may require the installation of back flow
devices at the meter connection.
5. The quantity of water delivered to CITY shall be quantified by a measuring device of
standard make and sufficient size, selected and maintained by COUNTY. The
measuring device shall be equipped with an indicating and recording register and a
transmitter for telemetering remote readout. In the event future relocation is required
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by either party, such party shall pay for all relocation costs.
6. The ownership ofthe flow measuring and backflow devices will remain with CITY.
CITY will not change, alter, add to, or take away any part of any flow measuring or
backflow device without prior approval of COUNTY. COUNTY will, at its expense,
install and retain ownership of the telemetering line from the measuring device to the
point of readout.
7. To assure accuracy, the flow-measuring devices shall be tested yearly by COUNTY
with results delivered to CITY's Utilities Director within 30 days of test. At other
intervals of time, should any question arise as to the accuracy of any flow measuring
device, CITY may require any or all of the flow measuring devices to be tested.
Should the tests show the flow measuring device to be registering within an accuracy
of two and one half (2-112) percent, CITY shall bear all the expense incurred in the
testing. Ifthe tests show the flow measuring device not to be registering within two
and one half (2-112) percent accuracy, COUNTY will pay all the expense incurred in
the testing and will immediately repair the flow measuring device. For any meter
found inaccurate, COUNTY will adjust the previous month's or months bills, as
appropriate, to reflect the result of the test.
8. COUNTY agrees that the supply of water to be delivered hereunder shall be at all
times continuous, except that temporary cessation of delivery of water at anytime by
an Act of God, fires, strikes, casualties, accidents, breakdowns of or injuries to
machinery, pumps or pipelines, civil or military authority, insurrection, riot or any
other cause beyond the control of COUNTY shall not constitute a breach of this
Agreement on the part of COUNTY, and COUNTY shall not in such case be liable to
CITY or its inhabitants for any damage resulting from an unavoidable cessation of
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delivery related to one of the causes stated in this paragraph.
9. It is recognized by both parties hereto that COUNTY supplies water to other
municipalities on a wholesale basis, and also to many thousands of retail users, and it
is agreed that at any time when the total demand for water by all of the users,
including CITY, exceeds the capacity of COUNTY's water supply and distribution
system, both wholesale and retail customers will receive equal priority for the supply
of water; and in such event, the inability of the COUNTY to supply either the
wholesale or retail customers' full requirements and needs shall not constitute a
breach of this Agreement on the part of COUNTY. CITY agrees that should the
Director of Pinellas County Utilities declare an emergency to exist in the supply of
water for COUNTY'S water system, the Director shall have the right and complete
authority to allocate or pro-rate water supply to CITY based upon existing needs of
the system, past and present demands on the system by CITY, and all other
reasonable circumstances then existing at the time of the emergency.
10. In the event that COUNTY is unable to furnish the amount of water CITY needs to
supply its service area, CITY shall be entitled to purchase water from other sources
for such supply until such time as COUNTY can again furnish CITY's water needs.
11. All water delivered under this Agreement shall conform to applicable State and
Federal laws and regulations and the standards ofthe State of Florid a Department of
Health and the Florida Department of Environmental Protection. COUNTY will
notify the CITY if water provided to the CITY fails to meet any of the above Federal
or State of Florida regulations or standards.
12. COUNTY will bill CITY for water used on a monthly billing cycle. Each month
COUNTY will read and record the reading on the register of each of the flow
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measuring devices. and compute the volume of water that has been quantified by the
measuring device during the billing cycle. CITY will, within thirty (30) days from
the receipt ofthe bill, make payment to COUNTY ofthe amount shown on the bill.
Failure of CITY to pay when due any amounts billed,- under the terms of this
Agreement, shall constitute breach of this Agreement and COUNTY's obligation to
furnish water may then be voided at COUNTY's option. Prior to voiding the
agreement, City shall provide written notice of any disputed amounts billed within
ten (10) days of receipt of such billing. The parties shall resolve said disputed
amount within thirty (30) days of the date of City's notice of dispute or submit the
controversy to arbitration, to be settled in accordance with the commercial arbitration
rules ofthe American Arbitration Association. However, either party may reject the
arbitration award by commencing legal action on the dispute within thirty (30) days
after the rendering of the award. If rejected by the commencement of a legal action
as provided in this paragraph, the award shall be deemed void and shall not be
admissible for any purpose in the legal action. Unless the award is rejected as
provided in this paragraph, the circuit court ofthe county in which the award is made
may enter judgment confirming the award. If payment is not made within the time
provided in Section 218.335, Florida Statutes, the CITY will pay to the COUNTY
interest at the rate established by Section 55.03, Florida Statutes.
13. CITY will be billed for the water recorded by the flow measuring device at the
wholesale rate established by the Board of County Commissioners. The wholesale
rate will be based on a pro-rata share of revenue requirements of the COUNTY'S
water system to include only those reasonable treatment and transmission costs that
can be shown to be required for the supply of water to COUNTY wholesale water
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users. The rate will become effective October 1 ofthe same fiscal year as the budget,
and may then be revised at any time by the Board as necessary to meet the revenue
requirements ofthe COUNTY'S water system. However, revisions after October 1st
which result in increased rates will not be effective until at least sixty (60) days after
adoption by the County Commission. Adequate notice, of not less than thirty (30)
days, will be given to CITY before any proposed rate increase is adopted. The
following factors shall be used in determining the municipal rate referred to herein:
A. Operation, maintenance, renewal and administrative costs.
B. Payment obligations of annual principal and interest payments on
COUNTY'S water system bonded indebtedness.
C. Collection of coverage or other reserves as required by Bond Resolutions and
Ordinances.
D. Pro-rata share of the costs of providing treatment, transmission and storage
facilities for expansion through revenues of water sales.
E. Payment of the cost of the water to COUNTY purchased from other agencies,
plus other costs to COUNTY required to furnish water to CITY as described
in A through D of this paragraph.
14. On or before March 1 each year during the term of this Agreement, CITY will notify
COUNTY on form provided by COUNTY of CITY's projected requirement by the
month for forthcoming year, together with a five (5) year projection of usage.
15. CITY will accept the potable water at the pressure in COUNTY's transmission
mains. Not withstanding paragraph 8 above, COUNTY will make every effort to
maintain a minimum of 35 psi static pressure or greater at all points of delivery to
CITY.
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16. CITY will operate its system in such a manner so as to prevent peaking of flow rates
that would place an unequal burden on COUNTY's facilities and be out of proportion
to other customers of COUNTY's water system. Storage to accommodate peak flow
demands will be included by CITY in the design and installation of the distribution
system in CITY's water service area. "Peaking" is recognized to be the rate of flow
which for any period oftime exceeds a rate one and fifty five hundredths (1.55) times
the average gallons per day on a yearly average.
17. All parties agreed that the area described in Exhibit "B" herein will be the farthest
extension of retail water service by CITY into COUNTY's water service area,
regardless of future annexation by CITY. Any encroachment by CITY beyond this
service area boundary into COUNTY's water service area, without written agreement
from COUNTY, shall constitute breach of this Agreement and COUNTY's
obligation to furnish water beyond the established COUNTY service area boundary
shall be void. It is the intent of both parties by adopting and observing this service
area to avoid duplication of capital investment and maintenance costs and to render
water service to the public as efficiently as possible. CITY recognizes the right of the
Pinellas County Board of County Commissioners to designate water service areas for
all municipalities in Pinellas County, and accordingly, CITY agrees not to extend any
water line into COUNTY's water service area without approval of the Pinellas
County Board of County Commissioners. In the event CITY shall wish to extend its
water service area, CITY shall make appropriate application to the Pinellas County
Board of County Commissioners for the passage of a resolution extending CITY's
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service area as requested. CITY agrees to strictly abide by all decisions ofthe Board
of County Commissioners in regard to applications or requests for extensions of the
CITY water service area.
18. Nothing contained herein shall prevent the CITY from obtaining some or all ofthe
water necessary to serve to its customers from any other source.
19. This Agreement shall be for a period ofthirty (30) years commencing on the date
of October 1, 2005 and terminating on September 30,2035.
20. Both parties represent that the execution of this Agreement has been approved by
the governing bodies of both parties in accordance with law and that both parties
have the legal authority to execute this Agreement.
21. This Agreement replaces and supersedes all prevIOUS Agreements between
COUNTY and CITY regarding water service.
22. This Agreement may be amended or terminated upon the mutual agreement of both
parties, in writing.
IN WITNESS WHEREOF, the parties herein to have caused this Agreement to be executed
by their respective authorized officers and it shall be effective on the day and year first
above written.
ATTEST: "j".,
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PINELLAS COUNTY, FLORIDA
By Throu its Board of County
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APPROVED AS TO FORM
OFFICE OF COUNTY ATTORNEY
By:
Countersigned:
CITY OF CLEARWATER, FLORIDA
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~ V. Hibbard
Mayor
By:
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William B. Horne II
City Manager
Approved as to form:
Attest:
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EXHIBIT" A"
METER LOCATIONS & SIZE
METER LOCATION SIZE
Belleair and Belcher 10"
Druid & Belcher 10"
Gulf to Bay Blvd, & Belcher 10"
SR580 Treatment Plant 06"
Countryside Mall #1 10"
Countryside Mall #2 10"
Sand Key 8"
U.S. 19 #1 Mazda 12"
U.S. 19 #2 Mazda 12"
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EXHIBIT "B"