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HomeMy WebLinkAboutOrdinances Book 16, Page 45, No Ordinance Number45 AN ORDINANCE AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT FOR WATER SERVICE, BETWEEN .TEST McCRACKEN COUNTY WATER DISTRICT AND THE CITY OF PADUCAH, KENTUCKY BE IT ORDAINED BY THE BOARD OF COMP?ISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Mavor and City Clerk of the City of Paducah, Kentucky, be, and they are hereby, authorized and directed to execute, on rehalf of the city, a contract for water service in words and figures as follows: "This CONTRACT FOR WATER SERVICE, made and entered into as of this day of 1966, by and between the [TEST PcCRACKEN COUNTY WATER DISTRICT, a Water District created under and existing by virtue of, the provisions of Chapter 74 of the K,entuckv Revised Statutes, situated in McCracken County, Kentucky (hereinafter sometimes referred to as the "District"), and the CITY OF PADUCAH, KENTUCKY, a municipal corporation of the Second Class, situated in McCracken County, Kentucky, acting by and through its Board of Commissioners as its duly authorized vovern- inr, body (hereinafter sometimes referred to as the "City"); L I T P E 3 3 E T H_ "(A) The West McCracken County Water District is a duly organized, created, and presently existing de jure Water District under the provisions of Chapter 74 of the Kentucky Revised Statutes. The District was created b,, virtue of an Order entered by the County Court of P?cCracke County, Kentucky, on October 30, 1962. As created and as the District presently exists, said West PicCracken County ;later District embraces a substantial area of McCracken County in close proximity to the City of Paducah, Kentucky. (P) The City of Paducah, Kentucky, is a municipal corpora- tion of the Second Class, situated in McCracken County, Kentucky. The City is located in close proximity to the boundaries of the West PCcCracken County [later District, but is not included within the corporate limits of said District. The City of Paducah, Kentucky, has long ovined and operated the Paducah !dater Works, its municipal aaterwork and water distribution system, which renders water service to retail customers both within the corporate limits of said City of Paducah, Yentuckv, and outside said corporate limits in accordance with the provisions of Section 9(.150 of the Kentucky Revised Statutes. "(C) The 49est McCracken County ;'later District, McCracken County, Kentucky, has entered into a Loan Agreement with the United States of America, actin- through the agency of the Housing and Home M Finance Agency of the United States. Said Loan Agreement is identified bi- governmental agencies as Proiect No. PFL-Ky-170; Contract No. H -302-292P. Pursuant to said Loan Agreement, said West McCracken County Water District has agreed to issue, and said Housing and Home Finance Agency of the United States has apreed to purchase, a certain principal amount of said District's "':Waterworks System Revenue Bonds", dated October 1, 1965, for the purpose of providing funds to defray the costs of constructing a new water distribution system to serve the territory encompassed by Test McCracken County Water District. It is provided as a Special Condition to said Loan Aereement No. PFL-Ky-170, that ':,rest D_cCracken County Water District enter into a valid contract with the City of Paducah, Kentucky, for the purchase of a supply of potable :nater sufficient to meet the present and future needs of said District :for a period of not less than forte (40) years, which is the term of said bond issue. The vilest P4cCracken County Water District and the City of Paducah, Kentucky, have entered into negotiations regarding the feasibility of the District obtaining its water supply from the City of Faducah, Kentucky, and based upon said negotiations and studies it has peen ascertained and ar•reed by and between the parties that the City of Paducah, Kentucky, will be able to serve the District pursuant to contract with a pure and adequate supply of treated potable water in quantities adequate for the needs of the District at a reasonable rate "NOiV, THEREFORE, IDI^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 ;LITH THE OTHER, AS FOLLOWS: "Section 1. The Hest i-:cCracken County Mater District, McCracken County, Kentucky-, 'rere'ry agrees to purchase an unlimited volume of pure, treated; potable :rater in accordance :with the terms of this CONTRACT FOR WATER SERVICE from the City of Paducah, Kentucky, and said City of Paducah, rentuck-, arrrees to sell an unlimited volume of pure, treated, potable water to the :•lest DicCracken County Water District, McCracken Count:-, Kentucky, at a .rater rate or charp_•e to be paid by the ';Dater Dis- trict of x:.0.28 per thousand rallons. In the event the demand of the District exceeds 1.2 million r°allons per day, it i.s hereby agreed by the parties hereto that the District may, in tirritinrr, delivered to the City not more than ninety (90) days after the end of the first calendar month in which the demand exceeded an averarre of. 1.2 million gallons per day, notify tie Citv that it has elected to cancel this contract, but said cancellation of the contract shall not be effective until the District has paid to the City, for expense alread- incurred by the City in order to perform this contract, the maxirmxm sum of �14.3,11:1:.1.3, less amorti.zatio of said sum at the rate of seven cents (7¢) per 1,000 gallons of water previously sold to the District under this contract and plus interest at the rate of five per cent (5%) per annum on the unamortized balance of said sum, computed semiannuallv, or has paid to the City, in cash, the balance due, in lieu of purchasing water. In the event that this contract is cancelled as provided in this section, the City will continue to furnish water under this contract until the District has established its source of supply. However, in this event, the City will not be obligated to furnish more than 2 million Fallons per day. "It is understood that the West McCracken County Water District will operate its own municipal water distribution system and will serve its own retail water consumers. No tapping fees will be exacted from any customers served by the West McCracken County Water District's municipal water distribution system for the benefit of the City of Paducah, Kentucky, and Vlater District's water customers shall be customers of the District only and not the City, the District itself being the customer of the City. "Section 2. It is hereby specifically agreed and covenanted between the parties that the water rate to be paid to the City by the District, as set forth in Section 1 hereof, shall not be increased or decreased except in accordance with the rules and policies set forth in this Section. In that connection, it is agreed that in the event the Cite increases or decreases its basic rate as charged to direct crater consumers within the City of Paducah, Kentucky, the water rate chared to the 'dater District shall be proportionately increased or decreased in accordance with the formula devised by Alvord, Burdick �. Howson, Consulting Engineers, as set forth in a arritten statement of rate policy submitted by said firm to H. B. Gibbons, Director of the Paducah ':later '.forks, under date of November 20, 1962. "Section 3. It is agreed that the amount of water purchased by the West 1'cCracken County :dater District from the City in any ones month, shall '.e determined, as follows: "The District will install, at its expense and under the super- i.sion of t -e City, a master meter to meter and measure treated grater er.terinr- the distri'rutior system of the West TicCracken County Slater District. Said meter is to be situated in the vicinity of the inter- section of Cold Sprinms Road and Old Cairo Road, in McCracken County, Fentucl-r. Said master meter shall he of such type as may be approved r^ the Cit,, or Paducah, Pentuckv, and shall lie connected to the water facilities of the City of Paducah at said location, as aforesaid, under the supervision and inspection of the officials of both the Ci.tzr and tre District. The Citv of Iaducah, Fentuckv, shall have the r:[r•ht, upon riving- notice to the Plater District, to test and repair said meter at the expense of the District at such time or times as the City shall deem necessary, and both parties shall have access to said meter at anv and all reasonable times for inspection and reading* purposes. It is agreed 1--v and l,etween the parties that the amount of water consumed monthly by the District, and to he paid for her the District, shall be deemed to he that amount registered by the master meter, described as aforesaid. "Section 6. It is understood and agreed that the 'West P-icCracken Count -Water District will install a booster pumping station near the master meter connection through which it will maintain required pressure for its proposed water distribution system. The City of Paducah, Sentuckv, will not undertake to pro-ide pressure for any part of the water distribution system of est McCracken County Water District. However, the City will undertake to provide adequate pressure at the master meter to assure that the District will he provided an adequate supply of treated water at all times, sul;ect to -the provisions of Sections 1 and 5 of this Contract. "Section 5. If at any time during the term of this CONTRACT FOR dATER SERVICE, the City of Paducah is unable to furnish water to the District because of an emerrrencv situation or an unforseen and unusual water demand within the Cit- of Paducah, or on account of :,rater system breakdowns, strikes, civil disorder, or other causes beyond its control, the City may discontinue service during said temporary period. The City does, however, agree that in such event it will re-establish water service to the District as quickly as possible within the limits of its le -al and physical a')ilities. "Section b. It is arrreed and understood that the 'Vest McCracken Countv ;Vater District will not at anv tine sell treated water to any consumer at a rate lo:•rer than that rate paid by similar customers to the Citi, of i-aducah within the corporate limits of the City. "Section 7. The City shall at all reasonable times have the rirb t to inspect and examine the plans and specifications for, and the completed water distrit•ution system of, the '.Pest PQcCracken County -Vater District. it is ar-reed that durinrr the term of this CONTRACT FOR !NATER SERVICE the District shall satisfy its entire water needs from the City, and that said District !•gill not operate anv waterworks system in com- petition with the Cite, nor seek to satisfy any part of its water needs from any other source or party. No connection will he made between any facilities of the District and an- well or other source of crater supply, and there shall he no 'cross connections' of anv kind in connection .with said water distribution system of the Districe. The District aerees to r^, indemnify and hold harmless the City of Paducah,Kentucky, on account of an- and all expenses, losses, damages, or claims for damages incident to the construction, installation, maintenance and operation of its water distribution s,rstem. "Section A. Charges for water furnished under this Contract shall he payable monthly, and within fifteen (15) days of the rendering of a statement from the City of Paducah to West McCracken County :Vater District. Bills will be rendered and charges paid in accordance with rules and reeulations now in effect or which may from time to time be adopted and revised by the City of Paducah, Kentucky, governing the payment of chanes by consumers of water. "Section 9. The City of Paducah, Kentucky, recognizes and understands, as specifically mentioned aforesaid, that the water dis- tribution system to be constructed by West McCracken County "dater District will he financed by the District by the issuance of Waterworks System Revenue Bonds, which bonds will he amortized solely from the income and revenues of the water distribution system of the District. In order to give proper assurance to the United States of America and to the holders of any and all of such Revenue Bonds, concerning the furnishing of water service under this Contract, the City of Paducah agrees that it will continue to supply water to West McCracken County Waste District from the same source and of the same purity and potability as furnished to its customers within the City of Paducah, Kentucky, under the terms and provisions as herein stated for a period of forty (40) years from the date when said District's proposed issue of"Waterworks System Revenue Bonds" is actually sold and delivered, subject only to temporary discontinuance by reason of the existence of an emergency or of a temporary unusual water demand within the City of Paducah, Kentucky, as hereinabove more particularly stated, or unless this Contract is cancelled as provided in Section 1 hereof. "Section 10. Nest McCracken County Water District agrees to submit a complete copy of all plans and specifications for the con- struction of its water distribution system and any extensions thereto to the City of Paducah for their review and approval. Upon completion of the water distribution system or any extensions thereto, the :Vest TIcCracken County dater District will provide the City of Faducah one cope 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 Department of Health. Failure of the District to comply with the provisions of this paragraph shall be considered a breach of this contract. 49 r v "Section -ll. This CONTRACT FOR WATER SERVICE shall be binding upon, and shall inure to the henefits of, all of the parties hereto and successors in interest, grantees, assir•nees, heirs, and assigns, and all parties taking- any interest from said parties. If any section, clause, or provision of this Contract shall be held invalid, such rolding of invalidity shall not affect the validity of any remaining sections, clause, paragraph, portion or provision of this Contract. "IN WITNESS WHEREOF,_ the parties hereto have hereunto caused their names to be affixed as heretofore duly authorized. (SEAL) ATTEST: (SELL) ATTEST: J TI S AMNI) 'Secretary CITY OF PADUCAH, KENTUCKY By -- — I,.ayor -- — WEST McCRACKEN COUNTY WATER By ARTHUR C-1TRTIS Chairman SECTION_2. This ordinance shall be in full force and effect from and after its adoption. Passed by the Board of Commissioners February 7, 1967 Recorded by Sarah Thurman, City Clerk, February 7, 1967.