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HomeMy WebLinkAboutResolution #3266;• . ~" RESOLUTION NO. 3266 A RESOLUTION APPROVING AN AMENDED WATER PURCHASE CONTRACT BETWEEN THE CITY OF CANTON AND THE VILLAGE OF FAIRVIEW AND AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK OF THE CITY OF CANTON TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF CANTON. WHEREAS, the Village of Fairview, Illinois has entered into negotiations with the City of Canton, Illinois, relative to the sale of water by the City of Canton to the Village of Fairview; and WHEREAS, the City Council of the City of Canton, Illinois has reviewed the terms of the proposed amended water purchase contract, a copy of which is attached hereto and made a part hereof as Exhibit A; and WHEREAS, the City Council of the City of Canton, Illinois has determined that it is desirable and in the best interest of the City of Canton to approve said Contract. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS, AS FOLLOWS: 1. That the Amended Water Purchase Contract between the City of Canton and the Village of Fairview, which is attached hereto and made a part hereof as Exhibit A, is hereby approved in the form attached as Exhibit A, said Contract to be subject to and effective pursuant to the terms and conditions set forth therein. 2. That the Mayor and the City Clerk of the City of Canton, Illinois are hereby authorized and directed to execute said Contract on behalf of the City of Canton. 3. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Illinois and approval by the Mayor thereof. -1- PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 21st day of February 1995 upon a roll call vote as follows: AYES: Aldermen ~~1' Mays ~~~ Sarff, Phillips, Coay. NAYS : None , ABSENT: Aldermen Bohler, Molleck. APPROVED: -- Donald E. Edwards Mayor ATTEST: Nanc S. Whites Ci y Clerk -2- AMENDED WATER PURCHASE CONTRACT This amended contract for the sale and purchase of water is entered into as of the 6th day of March , 1995, between the City of Canton, an Illinois municipal corporation, 210 East Chestnut Street, Canton, Illinois 61520, who is hereinafter referred to as the "Seller", and the Village of Fairview, an Illinois municipal corporation, P.O. Box 37, Fairview, Illinois 61432, who is hereinafter referred to as the "Purchaser". WITNESSETH: WHEREAS, the Purchaser is a municipal corporation organized under the Illinois Municipal Code and, as a municipal corporation, owns and operates a water supply distribution system serving water users in the Fairview area and to accomplish this purpose, the Purchaser requires a supply of treated water; and WHEREAS, the Seller is a municipal corporation organized under the Illinois Municipal Code and, as a municipal corporation, owns and operates a water supply distribution system with a capacity currently capable of serving the present customers of the Seller's system and the estimated number of water users to be served by the Purchaser; Now, therefore, in consideration of the foregoing and the mutual agreements hereinafter set forth, A. The Seller Agrees: 1. To furnish the Purchaser at the point of delivery hereinafter specified, during the term of this contract or any renewal or extension thereof, potable treated water meeting applicable purity standards of the State of Illinois and United -1- States of America in such quantity as may be required by the Purchaser for use by consumers of the Purchaser. 2. That water will be furnished at a reasonably constant pressure calculated at 100 gallons per minute at 40 PSI from an existing eight inch main supply at the existing terminus of the City of Canton water main on Illinois Route 9 (West Locust Street) at the Illinois River Correctional Center. If a greater pressure than that normally available at the point of delivery is required by the Purchaser, the cost of providing such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. To furnish, install, operate, and maintain at its own expense at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser and to calibrate such metering equipment whenever requested by the Purchaser but not more frequently than once every twelve (12) months. A meter registering not more than two percent (20) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the twelve (12) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be -2- f the amount of water delivered in the corresponding period immediately prior to the failure, unless the Seller and Purchaser shall agree upon a different amount. The metering equipment shall be read monthly. An appropriate official of the Purchaser shall have access to the meter at all reasonable times for the purpose of verifying its readings. 4. To furnish the Purchaser at the above address not later than the 20th day of each month, with an itemized statement of the amount of water furnished the Purchaser during the preceding month. B. The Purchaser Agrees: 1. To pay the Seller, not later than the 20th day of the following month, for water delivered in accordance with the rate schedule presently in force by ordinance of the City of Canton. A copy of the presently existing rate schedule is attached hereto and made a part hereof as Exhibit A. The Seller agrees that at no time will the rates for water furnished the Purchaser hereunder exceed the rates charged to consumers residing within the City of Canton. The Purchaser understands that the schedule of rates for water delivered under the terms of this contract are subject to modification from time to time. However, any increase or decrease in said rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder. Further, the Purchaser shall not be charged for extensions of the Seller's existing water system or capitalizations thereof, it being the understanding of the parties hereto that the Seller adheres to a policy of requiring developers and new users to bear the cost and expense of such -3- extensions. 2. To pay as an agreed cost, a connection fee to connect the Seller's system with the system of the Purchaser, the sum of Twenty-five Dollars ($25.00) which shall cover any and all costs of the Seller for installation of the metering equipment and miscellaneous appurtenances. C. It is further mutually agreed between the Seller and the Purchaser as follows: 1. That this contract shall extend for a term of ninety- nine (99) years from the date of the initial delivery of any water as shown by the first bill submitted by the Seller to the Purchaser and, thereafter, may be renewed or extended for such term, or terms, as may be agreed upon by the Seller and Purchaser. 2. That thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply distribution system, the Purchaser will notify the Seller in writing of the date for the initial delivery of water. 3. When requested by the Purchaser, the Seller will make available to the Purchaser's contractor at the point of delivery, or other point reasonably close thereto, water sufficient for testing, flushing and trench filling the system of the Purchaser during construction, irrespective of whether the metering equipment has been installed at that time, at a flat charge of One Hundred Dollars ($100.00) which will be paid by the contractor or, on his failure to pay, by the Purchaser. 4. That the Seller will, at all times, operate and maintain its system in an efficient manner and will take such -4- action as may be necessary to furnish the Purchaser with quantities of water required by the Purchaser. Temporary or partial failures to deliver water shall be remedied with all possible dispatch. In the event of an extended shortage of water, or the supply of water available to the Seller is otherwise diminished over an extended period of time, the supply of water to the Purchaser's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the Seller's consumers is reduced or diminished. 5. That this contract is subject to such rules, regulations, or laws as may be applicable to similar agreements in this State and the Seller and the Purchaser will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. 6. That the construction of the water supply distribution system by the Purchaser will be financed, in part, by loans and/or grants from the United States of America, acting through the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of the State Director of the Farmers Home Administration. The Purchaser agrees to make application for said financing as soon as possible and to provide the Seller with notice of financing approval as soon as possible. However, in the event the Purchaser is unable to secure said financing, within a reasonable time, then this Amended Water Purchase Contract shall be deemed null and void. 7. That in the event of any occurrence rendering either the Seller or the Purchaser incapable of performing under this -5- contract, any successor of the Seller or Purchaser, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of the Seller or the Purchaser hereunder. 8. The Purchaser agrees to pay for the installation of a water main from the existing terminus of the City of Canton water main on Illinois Route 9 (West Locust Street) in the City of Canton at the Illinois River Correctional Center to connect said service to the water system of the Purchaser. If and when the Seller extends its corporate limits Westerly, the Seller agrees to pay the Purchaser for the cost of the water main from the existing Western terminus of the Seller's main on Illinois Route 9 at the Illinois River Correctional Center to the new Western corporation line. In the event of any subsequent Westerly extensions of the corporation line of the Seller, the Seller will purchase the water main within the new extension. It is understood and agreed by the parties hereto that the sale and purchase price of the water main will be based upon the construction cost of the water main per linear foot computed as an average. The Seller agrees not to connect to the water main of the Purchaser West of the present Western terminus of the City of Canton water main at the Illinois River Correctional Center without purchasing said main. The Seller also agrees to pay for all costs and expenses associated with any change in the meter location. 9. The Purchaser agrees to acquire and bear the expense of all easements required for this project by it outside of the corporate limits of the Seller. The Seller agrees to grant to the Purchaser an easement for the main from the present Western -6- terminus of its main on Illinois Route 9 to the Western corporate limits of the Seller if necessary. IN WITNESS WHEREOF, the parties hereto, acting under authority of their respective governing bodies, have caused this Contract to be duly executed in two counterparts, each of which shall constitute an original. SELLER: CITY OF CANTON ~~ Do ald E. Edwards Mayor PURCHASER: VILLAGE OF FAIRVIEW Warre Baxter Village President ATTEST: Nancy Whites City Clerk ATTEST: r ~• P lizabeth N. Phi p Village Clerk This Contract is approved on behalf of the Farmers Home Administration this day of By: Title: 1995. -7- .~ EXHIBIT A (C) Water Rate Schedules The minimum monthly charge for water services shall be fwo dollars fifty cents (2.50). In addition to such minimum charge, the following rates shall be charged for water actually used: AMOUNT USED PRICE PER 100 CU81C FEET For each 100 cubic teal S 1.15 or portion thereof