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AGREEMENT TO USE COUNTY WATER .',"' ~ ~.:; \ ->~, I I AGREEMENT THIS AGREEMENT, made and entered into this~~day of /~7h . ~ by and between Pinellas County, a. political ~tVt/ subdivision of the State of Florida, acting by and through its Board of County Commissioners, (hereinafter sometiInes referred to as the County) and the City of Clearwater, Flprida, a municipal corporation within said Pinellas County, acting by ahd through its City Commission (hereinafter sometiInes referred to as the City), WITNESSETH: Whereas the City, to insure an adequate supply of potable water for distribution to its citizens, desires to purchase from the County a continuing supply of potable water which the County is able to furnish from and through its water supply distribution system, NOW, THEREFORE, for and in consideration of the moneys hereinafter agreed to be paid and the mutual covenants to be performed by each of the parties hereto as hereinafter set forth, said parties do hereby mutually agree as follows: 1. The County agrees to furnish the City 10 mgd of water required by the City for its use ;Lnd for redist:t\ibution in its water service area. The City agrees to purchase from the County a minimum of 1,460,000,000 gallons (l billion, 460 million gallons) of water within each calendar year through this agreement for its use and for redistribution in its water service area. ThisminiInum purchase comm.itment by the City is based on a yearly average consumption. Both Commitments will increase in direct proportion to the water use increase from the service areas transferred from the County to the City in this agreement. The County service areas to be transferred to the City are described in Exhibit A. During the month of January of each year of this contract, the increased water use in the transferred areas for the previous calendar year will be computed by reviewing the building permits, certificates of occupancy, and water connections issued during the previous year, Water use increases will be determined by the following schedule: -1- / ,....i.j /3 //f;.' i"-' 'f. !,! I I NEW SERVICES AVERAGE DAILY USE GPD Single Family Residence 300 Apts. 1 bdrm. (.4 x 300) Apts. 2 bdrm. (.5 x 300) Apts. 3 bdrm. (.6 x 3001 ,- Trailers (.7 x 300) Duplex (1. 4 x 300) Triplex (1.7 J( 300) 120 150 180 210 420 510 . ConsUIIlption of all other new uses will be based on meter size as follows: 3/4" (1 J( 300) 300 1" (2.5 x 300) 750 1-1/2 " (5 x 300) 1500 2" (10 x 300) 3000 3" (20 x 300) 6000 4" (30 x 300) 9000 6" (100 x 300) 30000 8" (175 x 300) 52500 The computed increased water use for the new services of the previous calendar ye.ar will then be added to both commitments for the current I I . calendar year. Thes~me method and schedule of computing water use in- I . .. creas.e willbe applied t.o thos.e County facilities. and cus.tomers. trans.ferred to the City as. des.cribed in this agreement. These commitments will increase annually by the annually computed increased water us.;> from the transferred s.ervice area throughout the term of this agreement. 2. The County agrees to furnish to the City from and through the County's water supply and distribution system, and the City agrees to purchase from the County, potable water, of the standards described in paragraph 8 and at the rates described in paragraph 3, and upon the terms and conditions hereinafter set forth. 3. The City will pay for water at the municipal rate set by the Board of County Commissioners. The municipal rate will be based on a pro rata share of revenue requirements of the water system, to include only those -2 - l-",' f I reasonable production and transmission costs that can be shown to be required for the supply of water to Pinellas County water users. The rate will become effective October 1 of.the same fiscal year as the budget and may then be revised at any tiIne by the Board as necessary to meet the revenue require.ments of the Water Sys tem. However. revisions after October 1. which result in increased rates, will not be effective until at least 60 days after adoption by the County Commission. Adequate notice, of not less than 30 days, will be given to the City before any proposed rate increas e is adopted, The following factors shall be used in determining the municipal rate referred. to herein: A. Operation. maintenance, renewal and adIninistrative cos ts. B. Payment obligations of annual principal and interest payments on water system bonded indebtedness. C. Collection of coverages or other reserves as required by Bond Resolutions and Ordinances. D. Pro rata share of the costs of providing production and transmis s ion facilities for expans ion through l'e.venue:s of water sales. I E. Paymen~ of the cost of the water to the County, should it be purchased f.rom other agencies. plus other costs to the County required to furnish water to the City as described in A through D of this paragraph. . 4. The quantity of water delivered to the City shall be measured by a meter or meters of standard make and s.ufficient size, selected and maintained by the County. The City will purchase and install the meter or meters to the County specifications and pay all costs of maintenance of meters and installation. The City shall have the option of either a monthly service charge which will pay the cost of maintenance and replacement of the meter(s); or the City may be billed actual cost plus overhead for main- , tenance and replacement of meter(s). The City shall specify its desired -3_ :', I I option upon implementation of this agreement. S. The City shall have the right to inspect or request at its own expense, a test of the meter or meters ,installed, at any reasonable time, in order to determine. their accuracy. Should a test be made and the meter not meet AWWA Standards, the cost of the test shall be paid for by the County. The County agrees to maintain said meter, or meters, in proper condition so as to accurately measure the water supply to the City. 6. The 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 any time caused. by Act of God, fires, strikes, casualties, accidents, necessary maintenance work, breakdowns of or injuries to machinery, pumps or pipelines, civil or military authority, insurrection, riot or any other 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 in such case be liable to the City or its inhabitants for any damage resulting from such unavoidable cessation of delivery. 7. It is recognized by both parties hereto that the County supplies water to other municipalities on a wholesale basis, and also to many thousands of retail users; howev~r, the County acknowledges a primary responsibility i to the City of Clearwat!erand other customers to meet their water require - .. ! ments and agrees that. it 'W.ill not provide water for new expansion when there is a need for additional water to serve present customers. 8. All.water delivered under this agreement shall conform as nearly as possible to the standards of the State of Florida, Depar1:lnent of Health and Rehabilitative Services, and the United States Public Health Service while at the same time being consistent with community desires for water quality. 9. Billings by the County to the City shall be made between the first and fifteenth of each calendar month and shall relate to water furnished during the pre.ceding month. Payments based upon such billings shall be made to the County by the City within 30 days from the date of billing. -4- ':" of the City to paylhen due any amounts billed unJer the terms of this 1.'- ... - :Ii allure agreement shall constitute breach of this agreement and the County's obligation to furnish. water may be voided at the County's option and the City will accept all responsibility for immediatly furnishing its citizens with water. Payments due beyond 30 days will draw reas onable interest charges monthly at the rate set by the Board of County Commissioners. 10. All parties agree that the area described in Exhibit Ahereinwill be the farthest extension of retail water service by the City, regardless of future annexa- Honby th", City, Any encroachment by th", City beyond this service area boundary, without written agreement from the County, shall constitute breach of this agreement and the County's obligation to furnish water beyond the established service a.rea boundary shall be void. It is the intent of both parties by adopting and observing these service areas to avoid duplication of capital investment and maintenance costs ,;::-- _._~-~-~---- and to render water service to the public as efficiently as possible. --_._--,~-_.---~-~---.._~ --,,~~,-"----.._- It is further agreed that those County customers and water facilities which are within the City's service area described in Exhibit A and which can be readily incorporated into the City's water system will be transferred to the City as the neighborhoods are annexed into the City. If the County's water system is not transferred to the City at the time of annexation, the system will be transferred to the City as soon as it is practicable and economically feasible to do so. The City will pay the County an amount equivalent .to the cur.rent market I cost of these facilities at tlie time of transfer, less depreciation as determined by mutual agr.eementaccording to the County's water system depreciation schedule. However, the City will not be required to pay for those water dIstribution systems or parts of systems which are not transferred, Payment will be made in full at the time of transfer or as determined by mutual agreement. 11. This agreement shall be for a term of thirty (30) year s commencing October 1, 1975,and ending at midnight September 30, 2005, Breach of this contract by the City as described in Paragraphs 9 and 10 does not relieve the City from the commitment to purchase annually the minimum quantity of water per Paragraph 1 at the current municipal rate for the full term of this agreement or from other obligations under this agreement. -5- , ,~'" I I .,.. ~2. Breach of this contract by the County as described in Paragraphs 1, 2, 4, 6, 7, 8 and 10 does not relieve the County from the commitments per Paragraph 1 for the full term of this agreement or from other obligations under this agreement. 13. The County recognizes the need for upgrading the County's water system in the Clearwater Service Area and agrees to develop a program, with assistance from appropriate Clearwater personnel, to improve fire protection facilities to City standards on the County's water system within the City's Fire District on an orderly l;>asis under the County's assessment authority. The County will provide the City with a copy of this upgrading program within six (6) months of the effective capital expenditure rate The County further. agrees to implement the program at a i . of:no less than $100,000 per year. date of this agreement. 14. This agreement replaces and supersedes all previous agreements between the County and the City regarding water service. 15. This agreement may be terminated upon the mutual agreement of both parties. IN WITNESS WHEREOF, the said Pinellas County, Florida, acting by and through its Board of County Commissioners, has caused this agreement to be executed in its name and on its behalf by the Chairman of said Board, its official seal to be hereunto affixed, attested by the Clerk of said Board, and said City, acting by and thr.ough its city Commission has caused this agreement to be executed , , . I , I in its name and on its beha~ by its proper corporate officers; and its corporate seal to be hereunto attached, Attest: :5 0 1976 Counter signed: Mayor-Commission -6- ,- ,....~ ":'~", -~ .~.! ,. 19 5SJ, ~ \J 0,0':. -, . .11II ExistIng Area 11II Trttnsfer Area