HomeMy WebLinkAboutAddendum - 03/19/1987ADDENDUM
TO MARCH 19, 1987 AGREEMENT
FOR PURCHASE OF SURPLUS MUNICIPAL WATER
This Addendum Agreement made and entered into this /S day of
1995, by and between the City of Central Point, Oregon, a municipal
corporation, hereinafter referred to as "Purchaser", and the City of Medford, Oregon, a
municipal corporation, acting by and through its duly constituted Water Commission,
hereinafter referred to as'°Vendor".
Recitals
1. The parties previously entered into a written "Agreement" dated March 19,
1987, pertaining to the sale of surplus municipal waters by Vendor to Purchaser.
2. Paragraph 3 of the March 19, 1987 agreement provides that Purchaser will
not sell or dispose of any water obtained from Vendor outside of its corporate boundaries
without written permission from Vendor. That provision was consistent with Vendor's
written policies in effect at the time of the agreement.
3. On September 6, 1994, Vendor passed Resolution No. 807, which modified
Vendor's policies concerning its customers' rights to provide water outside corporate
boundaries.
4. As part of its current policy, based on the possibility that by the year 2020-
2030 Vendor will run out of "surplus" water, Vendor seeks to encourage its customers,
including Purchaser, to obtain, on its own, additional water supplies for future use.
5. Given Vendor's new policies, the parties wish to (a) modify Purchaser's rights
in connection with its service area; (b) add a provision setting forth Purchaser's obligation
to pursue additional water supplies; and (c) extend the term of the agreement.
1 OF 4 ADDENDUM TO MARCH 19, 1987 AGREEMENT FOR
PURCHASE OF SURPLUS MUNICIPAL WATER
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
AGREEMENT
The parties' March 19, 1987 "Agreement" is hereby modified as follows:
Section 1. Paragraph 1, page 1, is modified as follows:
Beginning on the sixth (6th) line from the top, the words, "not
exceeding, however, four million (4,000,000) gallons in any one day," are
deleted.
Section 2. Anew paragraph, 1-A, is added, to read as follows:
"1-A.
The Vendor owns and operates the treatment and transmission facilities
which supply "surplus" water to the Purchaser. Vendor is constantly attempting to
anticipate the water demands of its customers, including the Purchaser. The
Vendor needs reasonably accurate forecasts of the future water demand in order
to be sure to have sufficient "surplus" capacity in these facilities to meet the growth
needs of its customers. Therefore, the Purchaser agrees that at each five (5) year
renewal period it will convey to the Vendor a reasonable estimate of its maximum
daily demand for the next five year period. The estimated maximum day demand
for the next five (5) year period up to the year 2000 is 6.0 million gallons per day.
Both parties understand and acknowledge that Purchaser's estimated
demand is just a forecast and may prove to be too low or that a large industrial or
commercial customer may alter the demands of the Purchaser. In the event that
Purchaser becomes aware that it shall exceed its estimated maximum day demand,
it shall notify the Vendor with a new estimated demand. The Vendor will then
determine if it has sufficient surplus treatment and transmission capacity to meet
this anticipated demand. If sufficient capacity does not exist, then the Vendor shall
provide the Purchaser with a time line for meeting the demand.
In the case of an extremely large industrial or commercial user (those who
utilize over 2.0 mgd), Vendor will make a determination whether furnishing that
2 OF 4 ADDENDUM TO MARCH 19, 1987 AGREEMENT FOR
PURCHASE OF SURPLUS MUNICIPAL WATER
particular user with its needed water supply is a rational and intelligent use of the
region's limited water resources. Vendor does not guarantee Purchaser that every
large commercial or industrial users located in its service area will automatically be
provided water. Vendor will, however, apply the same standard as related to
service to larger users evenly across all the jurisdictions supplied by the Vendor."
Section 3. Paragraph 3, page 2, is deleted in its present form, and is replaced
by the following:
"3.
Purchaser agrees that water supplied to its customers is an "urban"
service and should be confined to current or future City residents.
Purchaser may establish its own urbanization and outside water service
policies based on this premise or may utilize the Vendor's policy.
Purchaser agrees that it will not serve any areas other than:
(a) Areas within Purchaser's Urban Growth Boundary
(b) Areas within Purchaser's Urban Reserve Area; and
(c) Areas within the Seven Oaks Interchange "Area of Mutual
Planning Concern"
all as defined and described in Purchaser's Comprehensive Plan, which
may be duly modified from time to time. Purchaser also agrees to notify
the Vendor in writing of all annexations or modifications to any of the
boundaries described above."
Section 4. Anew section is hereby added to the March 19, 1987 "Agreement",
to read as follows:
"Purchaser understands that the current agreement calls for the
sale of "surplus" water from the Vendor and that by the year 2020 - 2030,
with current growth trends, Vendor may completely utilize all of its natural
streamflow rights from the Rogue River. This will mean that the Vendor
may not have sufficient "surplus" water to meet the summertime demands
3 of 4 ADDENDUM TO MARCH 19, 1987 AGREEMENT FOR
PURCHASE OF SURPLUS MUNICIPAL WATER
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of the Purchaser. Additional stored water for municipal and industrial
uses is currently available from Lost Creek Reservoir; other alternatives
may be available to meet summertime demands. Even though 25 years
remain before the system utilizes all of its current surplus water,
Purchaser has developed a Long Range Water Resource Plan which
provides for the purchase of Lost Creek Water to meet Purchaser's future
summertime demands. This plan is attached hereto and by this reference
incorporated herein. Based on Purchaser's Water Supply SDC, and with
the execution of this Addendum agreement, including the attached Long
Range Water Supply Resource Plan, the parties agree that Purchaser
shall henceforth, for purposes of Vendor's Resolution No. 807, qualify as
a city which has 'secured (its) own water rights or have a defined
contractual obligation to do so'."
Section 5. The March 19, 1987 "Agreement" is hereby extended, on the same
terms except as amended by this Addendum, up 1o and including June 30, 2000;
provided that, Purchaser may, at its option extend the term for three (3) additional five-
year periods, which periods would run through June 30, 2005, June 30, 2010, and
June 30, 2015. Written notice of the election to exercise afive-year extension of the
contract must be given to the Vendor not later than January 1 of the year in which the
agreement would expire, if there was no extension.
Executed in duplicate in duplicate, each party retaining an original.
City of Central Point
Garth El lard, Council President
Desig d City Officer
City of Medford, Oregon
by and~Yrough its
Boa ~f Water Com Issioners
(" LG~~'
Vlc Chair -..
1
City Recorder
4 OF 4 ADDENDUM TO MARCH 19, 1987 AGREEMENT FOR
PURCHASE OF SURPLUS MUNICIPAL WATER