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Home My WebLink About2015-08-8280328 190425 ORDINANCE NO. 2015 - 8 - 8280 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A CONTRACT FOR WATER SERVICE BY AND BETWEEN THE COMMISSIONERS OF WATERWORKS, THE CITY OF PADUCAH, DBA PADUCAH WATER AND WEST MCCRACKEN WATER DISTRICT i WHEREAS, the West McCracken Water District (the "District") is a duly organized, created, and presently existing Water District under the provisions of Chapter 74 of the Kentucky Revised Statutes, which was created by virtue of an Order entered by the County Court of McCracken County, Kentucky on October 30, 1962; and WHEREAS, the Commissioners of Waterworks is a duly organized, created and presently existing municipal water utility owned by the City of Paducah and operating under the provisions of KRS 96.320 by the Board of Commissioners of Waterworks (the "Paducah Water"); and WHEREAS, the Paducah Water has continuously supplied potable water to the District since 1967 under a Contract for Water Supply dated February 7, 1967, that has expired; and WHEREAS, the District desires to continue to purchase potable water from Paducah Water sufficient to meet the present and future needs of the District. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. The City of Paducah accepts the recommendation of the Commissioners of Waterworks and hereby approves the Contract for Water Service dated July 6, 2015, by and between Paducah Water and the District (the "Contract"), in the form attached hereto as Exhibit A and made part hereof, and the changes to contract rates or charges for water as set forth in the Contract. That the Mayor of the City of Paducah, Kentucky, and the General Manager of Paducah Water, or any of them, are each hereby individually authorized to execute any and all documentation necessary and make such appearances necessary to effectuate the terms of the Contract and the changes to rates or charges and to obtain the approval of the Kentucky Public Service Commission. Section 2. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. Section 3. Compliance With Open Meetings Laws. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. Section 4. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. Section 5. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. ,: 1 , i -I Ir - .: I i I [ i 1 : - -- 1 r 1 tri F 77TIT,1� 717, 1 --17 1 --TF-- r7n IF ' I 329 ATTEST: Tammara S. Sanderson, City Clerk Introduced by the Board of Commissioners, July 21, 2015 Adopted by the Board of Commissioners, August 4, 2015 Recorded by Tammara S. Sanderson, City Clerk, August 4, 2015 Published by The Paducah Sun, August 13, 2015 \ord\pww-contract-west mccracken water district 8-2015 330 EXHIBIT A CONTRACT FOR WATER SERVICE See attachment. 1.:. :-;- r r, —r, ,. -,:- r Iii .i - - - TFTIFa. ='err- 'F-- rr.-e 747 77 ra TT9F- 1I CONTRACT .FOR WATER .SERVICE This CONTRACT FOR WATER (SERVICEwas made and entered into as of this ILO (.. day of by an be WOW the Nest McCracken water District, 8020 Ogden Landing Road, West Paducah, Kentucky 42086 (hereinafter referred to as the "District"), and the Commissioners of Waterworks, the City of Paducah, DBA Paducah Water, 1800 North 8th Street, Paducah, Kentucky 42001 (hereinafter referred to as "Paducah Water"). WITNESSETH: (A) The West McCracken Water District is a duly organized, created, and presently existing Water District under the provisions of Chapter 74 of the Kentucky Revised Statutes. The District was created by virtue of an Order entered by the County Court of McCracken County, Kentucky on October 30, 1962. The District service area is located in the western part of McCracken County and is west of and adjacent to the Paducah Water service area. (B) Paducah Water is a duly organized, created and presently existing municipal water utility owned by the City of Paducah and operating under the provisions of KRS 96.320 by the Board of Commissioners of Waterworks. The Paducah Water Service Area is located in close proximity to the boundaries of the West McCracken Water District, but is not included within the corporate limits of said District. Paducah Water has long owned and operated a municipal waterworks and water distribution system which renders water service to retail and wholesale customers both within the corporate limits of said City of Paducah, Kentucky, and outside said corporate limits in accordance with the provisions of Section 96.150 of the Kentucky Revised Statutes. Page 1 of 8 .. . .....,.. v ..:..., :., _. i. �.. .:. .y._. .. -�., :..:.i ;�.:. _.. .d_ ..:';:. .. _... x-,-;,. .._.-'.i,«d I 1 .��:,._.. � ....?qc4 Acf ��.z Wu';,;,H:.ti.n.l•I�1i�711xr I' -F w.j l,._a. �''': ��m'F , i r 1— . 1 t_a —�. (C) Paducah Water has continuously supplied potable water to the District since 1967 under a Contract for Water Supply that has expired. The District desires to continue to purchase potable water from Paducah Water sufficient to meet the present and future needs of said District for a period of not less than ten (10) years. The District and Paducah Water have entered into negotiations and it has been ascertained and agreed by and between the parties that Paducah Water will be able to continue to serve the District pursuant to this Contract with an adequate supply of treated potable water in quantity adequate for the needs of the District at a reasonable rate. NOW, THEREFORE, IN CONSIDERATION OF ALL OF THE FOREGOING AND THE VARIOUS REPRESENTATIONS, COVENANTS AND UNDERTAKINGS HEREINABOVE AND HEREINAFTER CONTAINED, THE PARTIES HEREBY SPECIFICALLY AGREE AND COVENANT EACH WITH THE OTHER, AS FOLLOWS: Section 1. The West McCracken Water District, McCracken County, Kentucky, hereby agrees to purchase an unlimited volume of treated, potable water in accordance with the terms of this CONTRACT FOR WATER SERVICE from Paducah Water, and said Paducah Water agrees, subject to the terms set forth herein, to sell an unlimited volume of treated, potable water to the District. Both Parties agree that changes to contract rates or charges for water are subject to approval of the City Commission of the City of Paducah and the Kentucky Public Service Commission. From the date of contract execution until September 30, 2018, Paducah Water will provide water to the District at the following contract rate or charges of: • Date Contract is Executed a October 1, 2015 $1.50 per 1,000 gallons (Existing Rate) $1.70 per 1,000 gallons Page 2 of 8 • October 1, 2016 • October 1, 2017 $1.90 per 1,000 gallons $2.10 per 1,000 gallons It is understood that the District will operate its own water distribution system and will serve its own retail water consumers. No tapping fees will be exacted from any customers served by the District's water distribution system for the benefit of Paducah Water. The District's water customers shall be customers of the District only and not customers of Paducah Water. The District itself will be the customer of Paducah Water. Section 2. It is hereby specifically agreed and covenanted between the parties that the water rates to be paid to Paducah Water by the District, as set forth in Section 1 hereof, shall not be increased or decreased until October 1, 2018. After September 30, 2018, if Paducah Water raises or lowers the basic rate it charges to its other customers then the water rate being charged to the District is to be adjusted in like manner. Section 3. It is agreed that the amount of water purchased by the West McCracken Water District from Paducah Water in any one month, shall be determined as follows: It is agreed that the three existing master meters are the property of the District. The District, will at its expense and under the supervision of Paducah Water, install, maintain and replace as necessary, master meters at each point of connection of the District's system to the Paducah Water system to meter and measure treated water entering the distribution system of the District. Said master meters shall be of such type as may be approved by Paducah Water, and shall be connected to the water facilities of Paducah Water at said locations, as aforesaid, under the supervision and inspection of the officials of both Paducah Water and the District. The District will at its expense, test the master meters annually in accordance with Page 3 of 8 I -.---1-- 1 . ( - I L ,__ _ Kentucky Public Service Commission's requirements. The District will provide notice to Paducah Water so that they may witness the test. Paducah Water will at its own expense has the right, upon giving notice to the District, to also test the master meters. Both parties shall have access to said meters at any and all reasonable times for inspection and reading purposes. It is agreed by and between the parties that the amount of water consumed monthly by the District, and to be paid for by the District, shall be deemed to be that amount registered by the master meters described as aforesaid. If any of the master meters fail between monthly readings and the monthly reading is obviously in error, it is agreed that the General Manager of Paducah Water and the General Manager of the District shall meet and review historical usage for past similar months in order to determine an amount to be billed. Section 4. It is understood and agreed that the District may be required to install, operate, and maintain booster pumping stations near the master meters' connections through which it will maintain required pressure for its purposed water distribution system. Paducah Water will not undertake to provide pressure for any part of the water distribution system of the District. However, Paducah Water will undertake to provide adequate pressure at the master meters to assure that the District will be provided an adequate supply of treated water at all times, subject to the provisions of Sections 1 and 7 of this Contract. Paducah Water does not guarantee to maintain any specific amount of water pressure, but will make reasonable efforts to maintain normal operating pressure at the point(s) of connection. Section 5. Paducah Water shall at all reasonable times have the right to inspect and examine the plans and specifications for, and the completed water distribution system of, the District. It is agreed that during the term of this CONTRACT FOR WATER SERVICE the Page 4of8 District shall satisfy its entire water needs from Paducah Water and that said District will not operate any waterworks system in competition with Paducah Water, nor seek to satisfy any part of its water needs from any other source or party. The District may construct and maintain connections with adjacent municipal utilities or water districts in order to provide temporary or emergency water supply to the District or to the adjacent municipal utilities or water districts. There shall be no "cross connections" of any kind in connection with said water distribution system of the District. The District agrees to indemnify and hold harmless Paducah Water, on account of any and all expenses, losses, damages or claims for damages incident to the construction, installation, maintenance and operation of its water distribution system. Section 6. The District agrees to submit a complete copy of all plans and specifications for the construction of any extensions of their distribution system thereto to Paducah Water for their review and approval. Upon completion of any extensions to the water distribution system, the District will provide Paducah Water one copy of "plans as built" and a copy of their Engineer's certification that construction has been accomplished in accordance with plans and specifications approved by the Kentucky Division of Water. Failure of the District to comply with the provisions of this paragraph shall be considered a breach of this contract. Section 7. If at any time during the term of this CONTRACT FOR WATER SERVICE, Paducah Water is unable to furnish water to the District because of an emergency situation or an unforeseen and unusual water demand within the Paducah Water service area or due to water system breakdowns, strikes, civil disorder, contamination, water conservation necessities or other causes beyond its control, Paducah Water may limit or discontinue service during said temporary period. Paducah Water does, however, agree that in such event it will make reasonable efforts to Page 5 of 8 I , q n f 7 Ti I i c i i -— ,- Pi F . ,_ I , i L - J re-establish water service to the District as quickly as possible within the limits of its legal and fiscal abilities. Section 8. It is agreed and understood that the District will not at any time sell treated water to any consumer at a rate lower than that rate paid by similar customers of Paducah Water; nor will the District sell water to customers located beyond its boundaries (as existing on the date of execution). Section 9. Charges for water furnished under this Contract shall be payable monthly, and within fifteen (15) days of the rendering of a statement from Paducah Water to the District. Bills will be rendered and charges paid in accordance with rules and regulations now in effect or which may from time -to -time be adopted and revised by Paducah Water, governing the payment of charges by consumers of water. Section 10. Paducah Water agrees that it will continue to supply water to the District from the same source and of the same purity and potability as furnished to its customers under the terms and provisions as herein stated for a period of ten (10) years from the date this contract is executed, subject only to temporary discontinuance by reason of the existence of an emergency or of a temporary unusual water demand within the Paducah Water service area as hereinabove more particularly stated. This contract may be renewed for an additional five (5) year period if both the District and Paducah Water agree to the renewal in writing, and, if legally required, prior approval is given by the City Commission of the City of Paducah and the Kentucky Public Service Commission. Section 11. At any time during the term of this CONTRACT FOR WATER SERVICE the District or Paducah Water may, with ninety (90) days written notice, provide written notice Page 6of8 Of its desire to renegotiate the terms of this Contract or cancel same. The District and Paducah Water must mutually agree,in writing, to renegotiate or cancel this Contract. If both parties do not agree to renegotiate orcancelthisC the Contiadi shall remain " in force thrbughout the ontract, t term*" d6ffikd in Section 10. Section. l2 M CONTRACT FOR WATER SERVICE shall beb nig, upon; shall inure to the. benefit of all :bf- the .parties hereto And sikeegg6ri in fiftffiftt, gnee grantees. assignees, - . grantees. , 19 -I-e hdif4, and 7 assigns and,afflvarfies taking interest ftom- said parties. If qi* section, clause, or _ 1 .—%.. ��— - . I �g,44-y: . 7- � .. . pyovIsion of phis Contract be'heId.inv % !siidh holding invalidity s'hAll n affect ih6 v of any remaanug section, clause, paragraph, 0 , p'01nor pvi-`on Q -'f- - -All notices rez trued to be gt en.hereYn. must $e %n WaV and shall be.delz eyed, by ooiilhed mail to .the official, OMM of :General Manager dthe. Distri& or Paducah. Water. 'INWI WHElEOF, 16 parties hereto ' -hekeunt6 caused their names to be affixed as heretofore --au' -A-H Page 7 of 8 -- f-- - -IIW STATE OF KENTUCKY MUNTY-OF.McCRACON Subscribed, sworn to, and acknowledged to before me. by. tom, I'll am C.RO—Ler � ., a Pr General M.' on behalf Water; flus the mbommission y STATE: OF K'ENTVqK .. .. i-, I. CrWIMW CWI.0 W -WA. - Notary Z 4 u4LU==� Page 8 of 8