AGREEMENT TO CONSTRUCT A NEW WATER SUPPLY SYSTEM (2)
r .'
.'
" . ~ I I
~, .<
THIS AGREEMENT,
Of-:?f~ .
made and entered into this
-z.ft/'day
, 195~, by and between PINELLAS COUNTY,
FLORIDA, acting by and through its Board of County Commissioners
(hereinafter sometimes referred to as the "County"J, and CITY OF
CLEARWATER, a municipal corporation in said Pinellas County, acting
by and .thmugh its City Commissicon (hereinafter.sometimesreferred
to as the "City"),
WIT N E SSE T H:
WHEREAS, the County has proposed to construct a new water
supply system and has acquired a supply of water adequate to supply
its present and future needs and to take care of certain munici-
palities in the County of Pinellas, including the City of Clearwater,
/
through proper action of their respective governing bodies indicate
a desire to be furnished a steady and sure supply of 1.,at,er in suffi-
cient quantities to serve their respective needs.
WHEREAS, the cost of said water supply system, including
expenses incidental thereto, are to be defrayed through the issu-
ance and sale by said County of its revenue certificates which are
to be payable from and secured solely and only by the revenues
from said water supply system remaining after payment or allowance
for payment of the reasonable and necessary expenses of operating,
maintaining and repairing the system; and,
WHEREAS, the City of Clearwater presently owns and operates
the water distribution system in and immediately adjacent to said
City supplying water for industrial, commercial, domestic and muni-
cipal purposes, but desires to adequately supplement its system
to assure its citizens of a continuous, sufficient supply of good
potable water in the future, this being essential to the general
public welfare and benefit, it is necessary for the continued
successful operation of said existing municipal water distribution
system that said City procure an additional supply of water which
the County upon the construction of its water supply system will be
able, and is agreeable, to supply subject to and in accordance with
the terms of this agreement.
...'-
ou-J99~ ';L
I '?
,-"- I
NOW, THEREFORE, the parties hereto do hereby covenant and
agree as follows:
1. The County hereby agre~ subject to the terms of this
agreement and particularly to the provisions in the first sentence
of Section 5 hereof, to construct an adequate water supply system
-, - -- -. --
to takeuwaterfNDl the -Eldridge""Wilde triJ,ct a-nd adjacent tracts
in the "Tampa High", and upon completion of the construction of
said County water supply system and subject to the terms and
conditions hereinafter set forth, the County will deliver under a
pressure of approximately 65 pounds per square inch, or at a pressure
sufficient to supply the demands of the City, at the following take-
off points:
(a) Gulf to Bay and Belcher Road
(b) Coachman Road (State Road 590) and Belcher Road
(c) Druid and Belcher Road
or at such other point or points as may be mutually agreed to by
. --' - -
theUparties'hereto,afi the water requested by said City for use
,
! in said water distribution system as now exists or as may hereafter
be extended for a period of thirty (30) years from the date of
commencement of supplying such water. The County will so operate
its water supply system as to maintain water pressure at the point
of delivery sufficient to supply the City's current requirements
except as limited in Section 7 herein. The County does agree that
the supply of water to be delivered hereunder will be at all times
continuous except that temporary cessation of delivery of water
at anytime caused by the Act of God, fires, strikes, casualties,
accidents, necessary maintenance works, breakdowns of or injuries
to machinery, pumps or pipe lines, civil or military authority,
insurrection, riot or any cause beyond the control of the County,
shall not constitute a breach of this agreement on the part of the
County, and the County shall not be liable to the City or its
inhabitants for any damage resulting from such unavoidable cessa-
tion of delivery.
-2-
~
.
','
I
I
2. All water delivered under this agreement shall be
good and potable water and shall be of like potability and purity
as that furnished to the County distribution system from the water
supply system to be constructed as aforesaid at its connection
with the present County water system, and shall meet the bacterial
I
__ _n_. _ __
and--cl1emica.lqualitystaridaras Of the Florida State Board of Health
and the United States Public Realth Service, and to be of a mini-
Imlm quality of a hardness of less than 180 parts per million and
with maximum chloride not to exceed 100 parts per million. It
shall be measured by a meter or meters of standard make and suffi-
cient size to be furnished, installed and maintained by and at the
cost of the County and located at the point or points of delivery
of water to the City, In case the City shall at any time question
whether any meter or meters are registering correctly the City shall
have the right upon making written request of the County to have
such meter or meters tested in the presence of a representative of
--.-
the City and, if, as a result of such test, said meter or meters
shall be found incorrect or inaccurate, said meter or meters shall
be restored to an accurate condition or a new meter or new meters
shall be installed at the cost of the County. If such meter or
meters be found to be substantially accurate, the cost of such test
shall be borne by the City, but othe~lise shall be paid by the
"
County,~and should any such test or tests show any such meter or
I
meters to be substantially inaccurate, computations for water pre-
viously delivered since, the last preceding monthly meter reading
shall be adjusted accordingly. The County reserves the right to
test such meters at any time. The term "substantially accurate"
hereinabove mentioned shall be construed to mean within 2!% plus or
minus from perfect registration.
3. The quantity of water delivered to the City shall be
determined from meter readings made by or on behalf of the County
approximately once in each month, whereupon the County agrees to
render a bill to the City for the amount then due as thus ascer-
tained. Until water has been so delivered for a full calendar
-3-
-
I
I
year, such monthly billings for water ~hall be made at the rate of
five cents (5~) per one thousand gallons, but if at the end of such
full calendar year of such operation and at the end of each calen-
dar year thereafter the quantity of water so delivered and billed
during such year is less than an average of four million gallons
per aay the.rithe CotiritywillbinC the City, and the City agrees to
pay the County for an amount of water equivalent to such four million
gallons per day at the said rate of five cents (5~) per one thou-
sand gallons whether used by the said City or not; provided, how-
ever, that the County shall not sell water to any other water
distributor, water distribution system, or municipality at a rate
less than the rate then currently charged the City of Clearwater.
The County agrees to furnish and the City agrees to purchase annually
an average minimum of four million gallons (4,000.000) per day or
a total minimum of fourteen hundred sixty (1.460) million gallons
per year. Settlement of the amount if any. to be paid by the City
by reason of the minimum quantity of water. all as hereinbefore
in this numbered section provided. shall be made within forty-five
(1+5) days after the close of eaq_~__<:_a_~~d~l"]~ar, and the City agrees
to make payments of the ,amounts due for monthly billings for water
as hereinbefore in this section provided, within twenty (20) days
from the date the County renders the respective monthly billings.
Upon execution of this agreement by the parties hereto, it is
contemplated that the County Will within a reasonable period of
time seek and obtain the necessary finances wherewith to carry
out the water supply system project herein contemplated by means
of a revenue certificate issue in an amount the County deems
necessary for the construction, completion and operation of said
project as contemplated hereunder, and in the event before such
revenue certificate issue shall have been fully retired. increased
consumption demands reasonably justify or require expansion of the
water supply system thus necessitating additional finances for the
purpose. the right is hereby reserved by the County from time to
-4-
I
,
time to issue, sell and deliver additional water revenue certi-
ficates which shall rank on a parity with the certificates hereby
authorized or permitted to be issued as may be then outstanding
in order to provide such additional finances.
4. The monthly billings for water delivered during
each yea-r_oi'-operat-tcm under th:ls agreement shall be at the rate
of five cents (5~) per thousand gallons, and so long as the County
has outstanding any revenue certificates issued in connection with
said water supply system the County will not be required to supply
water to the City under this agreement at a rate less than five
cents (5~) per one thousand gallons computed on the basis of an
average of four million gallons per day for the full calendar
year until the e:x:piration of the full thirty (30) year term of
this agreement as a ma:x:imum period and the time required to re-
tire said certificates as a minimum period, whereupon a new con-
tract shall be re-negotiated between the City and the County as
, ,
"provided in Section 15 hereof.
5. The obligations of the County under this agreement
are subject to its ability to construct the water supply system,
and its ability to issue, sell and deliver the revenue certificates
to pay the cost thereof. The City hereby declares its intention
to make payment of all sums due the County under this agreement
from the revenues derived from thepperation of its municipal water
~istribution system as an operating charge against said system, and-_
said City hereby covenapts and agrees to continuously fi:x:, charge,
collect and account for sufficient revenue~lfrom the operation of
"
said municipal water distribution system to make all such payments
under this agreement from revenUes available from that source, but
if the City for any reason fails or refuses to fully perform this
cc\venant and agreement with respect to f'i:x:ing, charging, collect-
-'n,,, and accounting for sufficient revenues, it shall not be thereby
~elievedof its obligations to make the payments under this
agreement for wate~ and water service. but as and when such pay~
-5-
"
I
I
ments become due they shall be collectible through such other means.
method or manner as may be available under the law applicable to
such cases.
6. If any such monthly bill is not paid within twenty
(20) days after the billing thereof as hereinbefore provided. a
Su.r-chargeof9neperp~Ell!tJl%}_Qfcthe -amount there'bf ghaHbe-
added to such bill and shall be paid by the City, Should the City
fail to pay any bill as aforesaid within twenty (20) days. as
aforesaid. the County shall also have the right to discontinue for
that cause. the supply of water hereunder. after giving to said
City ten (10) days' notice in writing of its intention for such
cause. to so discontinue the supply. The right of the County
to discontinue delivery as herein provided shall be cumulative and
in addition to any and ,every other remedy given under this agree-
ment, or otherwise existing.
7. The City agrees to make full use of its storage
facilities :for the purpose of avoidingabnorma.l demands ort the
water supply system to the detriment of co~mon users. and the
County reserves the right to control against such abnormal draw-
down or demands upon the water supply system capacity to the ex-
tent necessary for the reasonable protection of other users of the
water supply system in their pressure and volume requirements, to
the end that all common users of the water supply system may enjoy
reasonably equal consideration of their respective rights thereto.
and in no event will the County be required to furnish in excess
of 10,000.000 gallons during any single day, so long as the average
daily minimum figure remains at 4,000.000 gallons.
8. Subject to the conditions hereinabove set forth.
the terms of this agreement shall be for a period of thirty (30)
years, commencing on the date of the first delivery of water here-
under. and subsequent thereto the said City for the purpose of
continuing to receive a supply of water from said water supply
-6-
"
,
I
system, shall be entitled to re-negotiate,a new contract with said
County upon terms, provisions and conditions then to be mutually
agreed upon between the parties; provided, however, that said terms,
provisions and conditions shall be consistent with sound, economic
and practical operation of the water supply system, and wi_thd\le
-- ,-----,- -->
-- -. ,-
~ccnsideration~forYhe':feasonable'aiid equitable rights of the other
users of said water supply system for continued use of said system
under similar re-negotiated contracts, and provided further that
such contracts shall be re-negotiated between the City and County
as provided in Section 15 hereof.
9. It is strictly understood and agreed that the rate of
five cents (5~) per one thousand gallons as herein set forth may
be revised by the parties hereto at the end of any year's bill-
ing as hereinabove setiforth, provided such revision is based upon
an increase or decrease of the anticipated electric power rate
to the County for use in its water system of 1.3 cents per KWH.
10. It is further understood and agreed that if and
when the City's requirEfments for water consumption shall reach
,
two thousand eight million gallons per year, or an average of 5.5
million gallons per day, a rate adjustment downward mutually
agreeable to the parties, if financially feasible, will be made
pursuant to the provisions in Section 15 hereof.
11, The term "date of the first delivery of water here-
under" as it appears hereinabove in Section 8 hereof, shall be
construed to mean the date upon which the water supply system
project herein contemplated shall have been completed to the state
where said water supply system as a source of supply shall be avail-
able to the City of Clearwater, Florida, and the County's present
water supply system, any prior delivery of water to the City from
said water supply system shall be in accordance with separate con-
tract between the County and the City.
12. The County reserves the right at any time to con-
tract with and supply water from said water supply system to other
-7-
,
I
users whether:individuals or incorporated cities or towns, pro~
vided that any required increase in said water supply system's
facilities so to do shall not result in any incre~se in the rates
~r
or other financial obligations which the City is required to
meet and pay according to the terms and provisions of this agree-
ment..
13. This agreement may be amended by mutual agreement
of the parties from time to time t.o meet future conditions not
presently anticipated, provided that said County shall not be
called upon to amend this' agreement while any revenue certificates
are outstanding and unpaid in a manner that will injure or impair
the security of such revenue certificates, and it is particularly
recognized that this agreement shall inure to and be binding upon
the successors and assigns of the respective parties hereto.
14. This contract shall be binding upon the parties here-
to unless the County fails to provide necessary finances for the pur-
pose of carrying out the terms of this agreement within one (1) year
from the date hereof and unless the County fails to deliver water
to the City from this project within two (2) years from obtaining
finances through sale of the contemplated water revenu~ certificates
and upon such failure the parties hereto shall be relieved from the
terms of this agreement; provided, however, that the periods pro-
vided for herein may be extended by the mutual agreement of the
parties hereto.
15. Upon re-negotiation of this contract as provided
for in Sections 4 and 8, and a rate adjustment provided for in Sec-
tion 10, the parties hereto, based upon the factors existing at the
time of said re-negotiation and/or rate adjustment, will take into
consideration factors customarily considered in the calculations of
rate structures~ provided that any rate mlltually agreed upon in
I said re-negotiated contract and/or rate adjustment shall be cal-
culated only on those factors directly related to supplying water
to the City of Clearwater, and on the basic premise that the County
,^nter supply system shall be operated in the future, as it is
presently, at cost.
~8-
IN WITNESS WHEREOF, said Pinellas County, Florida, acting
~y and through its Board of County Commissioners, has caused this
agreement to be executed in its name and on its behalf by the Chair-
man of said Board, its official seal to be hereunto affixed, attested
by the Clerk of said Board, and said City, act~ng by and through
~"'---~"'- -
its City Commission, has caused this agreement to be executed in
its name and on its behalf by its City Manager and City Auditor
i
and Clerk, countersigned by its ~~yor-Commissioner, and its
corporate seal to be hereunto attached, the day and year first above
written.
PINELLAS COUNTY, FLORIDA
BY
/, .
.~u;:a--
Board of County
ers
Attest:
By ~,' w. ~1.U~~
Clerk, Board of County
Commissioners
CITY OF
Countersign
BY~/ / ~~~..
Aa~~'{Uer
.-/
Attest: '
Approved as to
195!;!..
B~' ~ /2-/V~;_:."'- <
City Attorney , 7' ,7-
form and correctness, thiS~ day of ~...~,
,
-9-
. .
--' >>.,;
I
I
.
ADD END U M
It is hereby mutually agreed by and between the parties
hereto that the date of the first delivery of water hereunder for
the purposes of Section 8 hereof, is the
day of
,
'-~n"i-9S::.=:.:."'.
IN WITNESS WHEREOF, said Pinellas County, Florida, acting
by and through its Board of County Commissioners, has caused this
addendum to be executed in its name and on its behalf by the Chair-
man of said Board, its official seal to be hereunto affixed, attested
by the Clerk of said Board, and said City, acting by and through
its City Commission, has caused this addendum to be executed in
its !lame and on its behalf by its City Manager and City Auditor
and Clerk, countersigned by its Mayor-Commissioner, and its corporate
seal to be hereunto attached, this the ____ day of
A. D.
195_,
PINELLAS COUNTY, FLORIDA
BY
Chairman. Board of County
Commissioners
Attest:
BY
Clerk, Board of County
Commissioners
CITY OF CLEARWATER, FLORIDA
BY
BY
City Auditor and Clerk
City Manager
Countersigned:
BY7~~~~, --
ayor-Co sioner
Attest:
Approved as to form and correctness, this
day of
,
195_,
BY
City Attorney
-10-
"
_.'J