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HomeMy WebLinkAboutMWC Wholesale Water Service Agreement POZM _ WATEDFORDER October 29, 2021 City of Central Point Attn: Hank Williams, Mayor 140 S 3rd St Central Point, OR 97502 RE: Letter of Agreement to Extend "Wholesale Water Service Agreement" Dear Mayor Williams: The current"Wholesale Water Service Agreement" between Medford Water Commission and the City of Central Point expired on October 1, 2021. If you would like to extend the Agreement another five years at current terms and conditions, please indicate your agreement by signing and dating below. The extended Agreement would expire on October 1, 2026. If you have any questions or concerns, please contact me at (541) 774-2443. Sincerely, Brad Taylor General Manager ll _ l d/ 2--?/Z/r Hank Williams, City of Central Point Date 200 S. Ivy Street - Room 177 medfordwater.org Medford, Oregon 97501 water@medfordwater.org Phone: (541) 774--2430 Fax: (541) 774-2555 WHOLESALE WATER SERVICE AGREEMENT THIS WATER SERVICE AGREEMENT (Agreement), made and entered in duplicate to commence on the first day of October, 2016, between the City of Central Point, a municipal corporation of the State of Oregon, acting as purchaser (Central Point), and the City of Medford, a municipal corporation of the State of Oregon, acting by and through its Board of Water Commissioners, acting as vendor (MWC), together referred to as the Parties. RECITALS: 1) MWC is an entity established under the Home Rule Charter (Charter) adopted by the citizens of the City of Medford, comprised of five citizens appointed by the Mayor and confirmed by the City Council, to manage the Water Fund for the purpose of supplying inhabitants of the City of Medford with water; and 2) Under Section 19 of the Charter, the MWC is authorized to sell water and/or supply facilities outside the legal boundaries of the City of Medford, only if said water and/or supply facilities are surplus to the needs of the inhabitants of the City of Medford, and meet certain conditions of MWC Resolution No. 1058; and 3) Under the Charter, the MWC is authorized to set rates for City of Medford inhabitants, and to make all necessary rules and regulations for the sale, disposition and use of water and water service from the City of Medford water system, and the MWC has adopted such rules and regulations; and 4) Per the MWC's projections, reports and plans, the MWC finds it has surplus water and supply facilities capacity available in its system to serve Central Point; and 5) Central Point desires to purchase surplus treated and transported water from MWC from October through April, and purchase surplus supply facilities treatment and transport services for Central Point's own water appropriated under Central Point's own state -issued water rights from May through September; NOW, THEREFORE, for and in consideration of the foregoing and of the mutual promises herein, the Parties mutually agree as follows: Water Service Agreement—City of Central Point Page 1 of AGREEMENT: ARTICLE 1. SCOPE OF SURPLUS WATER SUPPLY AND SERVICE Subject to Article 3 of this Agreement, MWC agrees to supply surplus water up to a combined (from all connections) maximum of 1833 gallons per minute (GPM) for the months of October through April, and surplus facilities capacity to treat and transport water up to a combined (from all connections) maximum of 4958 GPM for the months of May through September. Central Point agrees to provide sufficient water storage as part of its water system to assure that the maximum rate of withdrawal in GPM by Central Point is not exceeded with the following exceptions. During the 5 year term of this agreement the following conditions will be complied with: The above flow rates will not be exceeded between the hours of 5 am and 11 am. During all other hours the maximum flow rate will not exceed 5700 gallons per minute (GPM) in the summer and 3255 gallons per minute (GPM) in the winter. Notwithstanding the foregoing, in the event this agreement is renewed in October 2021, the maximum flow rates specified in this article may be recalculated by MWC based on future total source supply and future 2020 maximum month demand percentages, and such flow rates will be required over an entire 24 hour period. Upon written request by Central Point, this Agreement may be amended to provide supplemental supply and service to Central Point if MWC determines that it has surplus capacity for Central Point's use, and Central Point agrees to reimburse MWC the reasonable cost of providing such supplemental supply and service. ARTICLE 2. CENTRAL POINT DISTRIBUTION SYSTEM EMERGENCY Upon notice to MWC by Central Point of a distribution system emergency, MWC will use its best efforts to provide supplemental water supply or services during the emergency. For purpose of this agreement, "distribution system emergency" means: Any human or natural caused event that disables or impairs the distribution system such that its use constitutes an immediate threat to human life or health. ARTICLE 3. MWC CONNECTIONS MWC owns and is responsible for the construction, extension, maintenance, and operation of the MWC system up to the point of and including the master Central Point meter(s). Central Point shall pay all costs of connections to the MWC system including initial metering, initial and ongoing backflow protection, and annual testing of the backflow device, all in accordance with MWC standards. MWC shall monthly read and annually test the master meter(s) and provide readings and test results to Central Point. Water Service Agreement— City of Central Point Page 2 of 9 Central Point's water supply is provided by the following master meter(s) with backflow connections to MWC: • 10" Turbine Meter on Beall Lane, Central Point, Oregon • 10" Turbine Meter on Hopkins Road, Central Point, Oregon • 10" Compact Fireline Meter on Vilas Road, Central Point, Oregon Temporary emergency connections to MWC with prior approval can be provided at the following location(s): N/A The following special conditions concerning connections to MWC apply: • MWC agrees Central Point may serve the Seven Oaks Interchange "Area of Mutual Planning Concern". ARTICLE 4. MWC REGULATIONS Water service under this Agreement shall be in accordance with Section 30 SURPLUS WATER and Section 31 PROVISIONS RELATING TO UTILITY AND MUNICIPAL CUSTOMERS of the MWC Regulations Governing Water Service (Regulations), as now in effect or as may be amended. If there is any inconsistency between this Agreement and the Regulations, the Regulations control. Notwithstanding the foregoing, nothing herein is intended to relieve MWC of its obligation to supply surplus water in accordance with the terms of this Agreement, except as dictated by Federal/State regulations outside the control of MWC. The Parties acknowledge that implementation of this Agreement and the Regulations are subject to federal or state directives. MWC shall promptly provide Central Point a copy of any amendments to the Regulations. ARTICLE 5. URBANIZATION POLICY Central Point agrees to provide water and services to customers within Central Point city limits, or as otherwise approved by MWC in MWC Resolution No. 1058, as may be amended. Central Point may provide water and services outside of city limits, but within its urban growth boundary, provided that the property requesting service has signed an irrevocable consent to annex to Central Point, or as otherwise approved in writing by MWC. The current general water service map covering city limits and urban growth boundaries for Central Point is Water Service Agreement — City of Central Point Page 3 of 9 attached to this Agreement as Exhibit A. Central Point shall promptly notify MWC and provide a revised map as city limits and urban growth boundaries are modified. ARTICLE 6. MEETING FUTURE WATER DEMANDS Water and water services provided by MWC under this Agreement are pursuant to water rights held by the MWC and Central Point. Nothing in this Agreement shall be construed to confer upon either party a legal or beneficial interest in each other's water rights, or to prevent either party from seeking additions or alterations to their water rights as deemed necessary. Central Point shall acquire and maintain such water rights as needed to meet the demand within its service area during the months of May through September. Central Point may use the MWC intake facility, located at the intersection of Table Rock Road and the Rogue River in White City, as the designated point of diversion for Central Point water rights. MWC shall cooperate in the perfection of any Central Point water rights. Central Point currently holds water rights with a diversion point on the Rogue River at the MWC Intake Facility site at the rate of 4.176 cubic feet per second and/or volume of 1113.6 acre feet. Delivery of such Central Point water through MWC facilities shall be subject to the same terms and conditions as delivery of surplus MWC water. MWC shall measure and record at its Robert A. Duff Water Treatment Plant the amount of water withdrawn from the Rogue River by MWC and its municipal water service customers under each of their respective water rights. In its monthly water service invoice, MWC shall provide water use data for Central Point. Central Point shall provide MWC updated demand projections. ARTICLE 7. SYSTEM DEVELOPMENT CHARGES Pursuant to Resolution No. 774, MWC has established Water System Development Charges (SDCs) and supporting methodology to finance future MWC transmission and treatment facilities expansions. SDCs apply to all new customers, including customers of municipal wholesale customers served by MWC. Central Point shall collect SDCs set by MWC from new Central Point customers. MWC reviews the SDCs annually and reserves the right, in its sole discretion, to modify or replace the SDCs with a different financing mechanism for system improvements. All SDCs collected by Central Point will be held in a separate account and forwarded to MWC along with an accounting of the number and sizes of the services installed. Central Point shall provide MWC with a copy of the section within the annual Central Point audit that shows accounting of MWC SDCs collected during the audited year. MWC shall, in turn, provide Central Point an annual accounting of all SDCs collected. Water Service Agreement— City of Central Point Page 4 of 9 MWC utilizes a utility basis for determining the water usage rate it charges Central Point. Under this rate analysis, Central Point is required to pay a return on investment for its share of the facilities paid for by MWC. Facilities funded by SDCs shall not be included in the return on investment portion of the rate analysis. MWC shall render technical assistance to Central Point in determining SDCs. MWC shall defend Central Point against any legal action or appeals which may arise over the development, methodology, or implementation of the SDCs. Central Point shall cooperate and support MWC in the defense, but shall not be obligated to incur any monetary obligation in such defense. Upon termination of this Agreement, the following refund policy shall apply: (a) MWC shall return to Central Point its prorated share of the unexpended balance of the SDCs fund. This prorated share shall be based upon the actual unexpended SDCs collected by Central Point for the specific facilities funded by the SDCs, plus the interest earned. (b) MWC shall return to Central Point a prorated share of the depreciated plant value of the specific MWC facilities funded by the SDCs and already installed. The prorated share shall be a percentage based upon the total amount of SDCs paid by Central Point divided by the total SDCs collected and used to fund the facility, not including interest earned during the years in which the SDCs were collected. (c) In order to avoid a financial hardship, MWC shall develop a reasonable schedule of up to five (5) years for repayment of the depreciated value of the specific MWC facilities funded by the SDCs. (d) At the request of Central Point, the MWC shall provide an accounting of the refunds made pursuant to this section. ARTICLE 8. PAYMENTS TO MWC Central Point shall pay monthly for all water and services provided by MWC at MWC's scheduled wholesale rates then in place. Payment shall be made within ten (10) days after the meeting of the Central Point's Council following receipt by Central Point of a statement of charges from MWC. MWC reserves the right, in its sole discretion, to change (with prior written notification of a rate study review) said rate at any time upon sixty (60) days written notice to Central Point, following rate procedures and protocols in the MWC Regulations. ARTICLE 9. TERM OF AGREEMENT Water Service Agreement — City of Central Point Page 5 of 9 This term of this Agreement shall be five (5) years from its commencement. Central Point may, at its option, extend the term for three additional five-year periods, which periods would run through October of 2026, 2031, and 2036 respectively. Extensions shall be subject to the same terms and conditions as this Agreement. Written notice of the election to exercise a five-year extension of this Agreement must be given to MWC not later than January 15S of the year in which the Agreement would otherwise expire. If Central Point fails to provide MWC such notice, this Agreement shall be deemed canceled at the end of the term then in effect. MWC shall continue service for a reasonable period, determined in MWC's sole discretion, to allow Central Point to secure other sources of water. Provided, however, Section 19 of the Charter of the City of Medford limits the term of water service contracts to 20 years and, therefore, the obligations of MWC under this Agreement, including renewal periods, shall not exceed that period of time. ARTICLE 10. ASSIGNMENTS Central Point shall make no assignment of this Agreement without written permission from MWC. Any approved assignee or successor shall agree to be bound by the terms and conditions of this Agreement. ARTICLE 11. WATER CURTAILMENT PLAN During periods of drought or emergency, Central Point shall be subject to the MWC Water Curtailment Plan, per MWC Resolution No. 1345, unless Central Point has in effect a state - approved and adopted Water Curtailment Plan at least as stringent as that of MWC. In the event of a conflict between the Central Point plan and the MWC plan, the MWC plan shall control. The MWC shall give Central Point as much advance warning as possible prior to curtailment of water supplies. The level of curtailment shall be determined by MWC based on the severity of the anticipated shortage. Central Point shall be responsible for enforcing the MWC curtailment plan or the above mentioned Central Point plan in its service area. MWC will require and apply emergency curtailment of water use in an equitable, fair, and consistent manner consistent with Resolution 1345. Continued service during periods of emergency shall neither be construed as a waiver nor limitation of any kind on any water rights held by MWC, or a waiver or curtailment of any water rights held by Central Point, nor as affecting any other terms in this Agreement. ARTICLE 12. ANNUAL WATER QUALITY REPORTING MWC will gather annual water quality data and prepare informational reports as required under state Consumer Confidence Reporting (CCR) rules. These CCR reports will include water Water Service Agreement — City of Central Point Page 6 of 9 quality information for MWC and all participating municipal water customers. Annual costs involved will be proportionally shared among participating municipal water customers and billed separately to each. Statistical data necessary to create the CCR report for the prior year must be provided by Central Point to MWC no later than April 1st of each year. If bulk mailing is the primary distribution method utilized, Central Point shall also provide MWC with postal routes covering their respective service areas by April 1st of the delivery year. MWC reserves the right to utilize other approved delivery methods (e.g.; electronic), which may impact responsibilities for Central Point. In the event that Central Point receives water into its system that is supplied by an entity other than MWC, the composite MWC report for that year will not include data for Central Point. Central Point shall be responsible for preparation of its own annual CCR, and MWC will provide MWC data by April 1st of the delivery year. MWC maintains water quality test points throughout the MWC system and one specifically at the master meter location(s) of Central Point. These test points are used to collect water samples for meeting required state water quality parameters on a weekly, monthly, and annual basis. All information collected is of public record and is accessible through state or MWC databases. Responsibility for water quality is transferred to Central Point at the point of the master meter location(s), except where water quality problems are attributable to MWC. ARTICLE 13. MUTUAL INDEMNITY To the extent allowed by law, Central Point and MWC shall each defend, indemnify and hold the other, and their officers, employees, and agents harmless from any and all claims, suits, actions, or losses arising solely out of the acts and omissions of the Party's own officers, employees, or agents while acting under this agreement. ARTICLE 14. PARTIAL INVALIDITY If any term, covenant, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in force and effect, and shall in no way be affected, impaired, or invalidated thereby. ARTICLE 15. INTEGRATION This Agreement represents the entire understanding of MWC and Central Point as to those matters contained herein. No prior oral or written understanding shall be of any force or effect Water Service Agreement — City of Central Point Page 7 of 9 with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties. ARTICLE 16. DEFAULT For purposes of this Agreement "default' means failure to comply with any of the terms of this Agreement. If either party determines that a default has occurred, it shall provide the other party written notice of the default, which such party shall have thirty days in which (a) to cure the default, (b) show that the default is of such a nature that it cannot be reasonably cured within thirty days, or (c) show that no default occurred. MWC and Central Point will work in good faith to amicably resolve the default. If after thirty days of the notice of default, MWC determines, in its sole discretion, that Central Point is unable or unwilling to cure the default within a reasonable time, MWC may impose escalating penalties as follows: (a) ten percent surcharge for a period of thirty days; (b) twenty percent surcharge for the next thirty days; and (c) termination of this Agreement. Such penalties are in addition to any other remedies at law or equity that maybe available to MWC. Failure to issue notice of default or to enforce its remedies under this Article 16 shall not preclude MWC from taking such action for future defaults. If after thirty days, Central Point determines, in its sole discretion, that MWC is unable or unwilling to cure the default within a reasonable time, Central Point may terminate this Agreement and pursue any other remedies at law or in equity that may be available to Central Point. ARTICLE 17. FORCE MAIEURE Neither party hereto shall be liable for delays in performance under this Agreement by reason of fires, floods, earthquakes, acts of God, wars, strikes, embargoes, necessary plant repairs or replacement of equipment, of any other cause whatsoever beyond the control of such party, whether similar or dissimilar to the causes herein enumerated. This clause does not include causes related to water supply and demand planning or failure to engage in such planning. ARTICLE 18. DISPUTE RESOLUTION If a dispute arises out of or relates to this contract, and if the dispute cannot be settled through negotiation, the parties agree first to try to settle the dispute by non-binding mediation before Water Service Agreement — City of Central Point Page 8 of 9 resorting to litigation or other process. The parties agree to share equally the costs of mediation. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their proper officers on the dates noted below. THE CITY OF MEDFORD BY AND THROUGH ITS BOARD OF WATER COMMISSIONERS Leigh Jo �ns4k Chair w C�Oca Karen Spoonts, City Re rder Date THE CITY OF CENTRAL POINT Maya, City Recorder q LE Date Water Service Agreement— City of Central Point Page 9 of 9