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HomeMy WebLinkAbout2002.04.09_Worksession Agenda Ms Bishop will discuss budget amendments need for the bond issue projects & will answer questions relating to those amendments. 3. Discussion Relating to Budget Amendments for Bond Issue Proj ects. Ms Bishop Attachment #3 There will be a brief presentation and explanation of the City of Character Program, with a more detailed presentation in May. City of Character Presentation Mr McElrath Mr Coker 1. Call to Order Mayor Barnhouse AGENDA bulletin on the 5, 2002. Notice and agenda filed at run. on Special April 9, 2002 6:00 p.m. Owasso City Hall Main Conference Room TYPE OF MEETING: DATE: TIME: PLACE: PUBLIC NOTICE OF THE MEETING OF THE OW ASSO CITY COUNCIL Owasso City Council April 9, 2002 Page 2 4. Discussion Relating to Emergency Water Connection Contracts. Mr Ray Attachment 94 Mr Ray will discuss the proposed agreements with Rural Water District No. 3, Washington County, for temporary emergency water service for Bailey Ranch Estates I and Country ;states V. 5. Report from City Manager I. Audit 2. Extension of Auditor's Contracts 1 Garrett Creep PUD & ,Zoning 4. Surplus Fire Truck 5, Project Priorities 6. FY 2002 -2003 Budget 7. Labor Negotiations 8. Other Items Mr Ray 6. Adjournment. J:NT # T When the fiscal 2002-2003 budget is presented to the Council next month, current projects will be included again. The "Project-Length Budget Report" for the Bond Project Fund is attached. The "Amended Project Authorization" is the total that has been budgeted through the Bond Project Fund since the projects were authorized more that four years ago. The "Current Fiscal Year Budget Authorization" is the total available from July 1, 2001 through June 30, 2002. Staff will be requesting that Council approved the Current Fiscal Year Budget Authorization at the April 16 meeting. Recently, the subject of capital project budgets was discussed with other finance directors. Some cities approve a "project-length budget" one time and carry the original appropriation until the project is completed. Oklahoma Budget Law does not address this budgetary method. The group concluded that, "to be on the safe side," it is best to re-confirm the project budgets annually. At the begimling of the current fiscal year, all funds had been received. Contracts had already been awarded for the current projects. Budgets for those contracts had already been approved. the project budgets were not re-approved as part of the fiscal 2002 budget. The Bond Project Fund is used to account for the use of the proceeds of the 1998 Revenue Bonds and the Sales Tax Capital Future Fund as approved by the citizens in an October 1997 election. original budget was approved by the City Council in 1998. Each as contracts were approved and additional sales tax funds became available, the project-length budget was amended. BACKGROUND: 5, HONORABLE MAYOR AND CITY COUNCIL CITY OF OW ASSO TO: MEMORANDUM $0 ENDING FUND BALANCE $0 $0 (3,966,316) o o NET 143,725 1,734,000 2,141,275 o o o 1,046,125 4,262,920 5,307,138 476,681 o 3,188,000 5,907,000 500,000 262,000 Engineering Building Facilities Street Projects Sports Park Improvements Contingency/Other Projects Transfer to General Fund EXPENDITURES o 52,684 6 2,205,289 269,000 7,450,889 'j ,203,595 90,000 70,000 269,000 Transfer from Sales Tax Capital Future Fund Transfer from Capital Improvements Fund 7,460,000 100,000 Current Fiscal Year Budget Authorizaiton Original Amended Project Project Authorization Authorization Bond Project Fund Project-Length Budget Report Fiscal Year 2001-2002 Proceeds of 1998 Revenue Bonds Interest Grant REVENUES BEGINNING FUND BALANCE E T About four months ago (December), the rural water district recognized that they needed an emergency interconnect with the City in order to ensure their service to the Country Estates V At that time, the City began the process of trying to bring the District to the table for negotiation of an extension of the agreement. During the next 18 months, those negotiations did not make much progress. However, two other agreements relating to a territory trade and a street repair policy were executed during that 18-month period. Then in December of 1999, the water district began having concerns about the extended "emergency" use of their water supply, and the City, in May of 2000, began serving Bailey Ranch Estates I with city water and closed the interconnect. On May 30, 2000, the City was notified by the water district that a rate review was needed and that the agreement provided for such review and increase. The correspondence from the District indicates there was concern that the District was serving as a "bulk" water provider and that such a sale was not the mission of the District. The indications were that, at that time, the District was desirous of eliminating the agreement and the interconnect. In September of'1995, the OPWA approved an agreement with Rural Water District #3, Washington County, for emergency water service for Bailey Ranch Estates!. That agreement provided for either party to supply water to the other in an "emergency". Even though the OPWA approved the agreement on September 19,1995, the rural water district did not ratify the agreement until December 21, 1999. However, during the interim the emergency interconnect was installed and operational. In fact, for a period of about six months the City activated the interconnect and supplied water to the Bailey Ranch Estates I subdivision from Rural Water District #3, Washington County. BACKGROUND: April 5,2002 DATE: THE HONORABLE CHAIR & TRUSTEES PUBLIC WORKS AUTHORITY MEMORANDUM The agreements were negotiated and developed by the City Attorney and the District's attorney. A letter from Mr Cates is attached for your review. 9. Indemnifies the supplier from liability. 8. Allow the supplier party to discontinue service if the water pressure of the supplying party falls below 25 pounds per square inch, and 7. Provide for a 10-day notice of a breach of the agreement by either party, 6. Provide for service to be discontinued at any time if the supplier's customers will receive sub-standard service due to the emergency service, 5. Establish rates at $3.00 per 1000 gallons during any of the three emergency periods and $3.58 per 1000 gallons during an extended period (a period longer than 30 days), 4. Allow for three emergencies of 30 days duration for each party annually, 3. Require the receiving party to provide a two-hour notice on weekdays and a four-hour notice on weekends before activating the interconnect, 2. Allow for the sale of a maximum of 125,000 gallons of water day during the emergency, 1. Establish a term of six years for the agreements, The agreements provide extensive detail for the use of the interconnect. Generally, the agreements: THE AGREEME~IS;. 11, 2002, final drafts Those are reflect the exact the subdivision. The District was in the same position in Country Estates V that the City experienced in Bailey Ranch Estates I, and found that the only reasonable resolution was an emergency interconnect. At that point, negotiations began to accelerate and progress was made on developing a final agreement both the Bailey and Country Estates V interconnect. Emergency Water Service April 5, 2002 Page 2 1. Conespondence from dated March 11, Proposed agreement for Country Estates V 3. Proposed agreement for Bailey Ranch Estates I The staff has reviewed the two agreements and recommend Trustee approval both documents and that the Chair be authorized to execute such agreements. STAFF RECOMMENDATION: Emergency Water Service AprilS, 2002 Page 3 I Subsequent to the negotiations regarding Bailey Ranch Estates I, it became apparent that the Rural Water District No.3, Washington County, Oklahoma, was desirous of an emergency water service By way of background, representatives of the City of Owasso as well as the Rural Water District No.3, Washington County, Oklahoma, have been meeting for some time over the course ofthe last three years for purposes of discussing inter-connections to provide emergency water service. Initially, the discussions centered around provision of emergency water service for Bailey Ranch Estates I by Rural Water District No.3, Washington County, Oklahoma, to the Owasso Public Works Authority. In actuality, this inter-~onnection has been in place for some time. A previous agreement that we had with Rural Water District No.3, Washington County, Oklahoma, had expired and we were negotiating a successor agreement. The issues that existed between the parties would be the term of the agreement, the number of annual utilizations of the inter-connection, as well as the price to be paid for the emergency water service. We have now arrived at what I submit is a mutually acceptable resolution of those issues; however, in that respect, I will defer to yourself as well as the Trustees of the Owasso Public Works Authority. As I previously advised, I would be communicating with you for purposes of transmittal of proposed agreements relating to emergency water service between the Owasso Public Works Authority and Rural Water District No.3, Washington County, Oklahoma, pertaining to the above referenced subdivisions within the City of Owasso, Oklahoma. I apologize for the delay in the transmittal of these agreements; however, the attorney for Rural Water District No.3, Washington County, Oklahoma, Larry Steidley, as well as myself felt that it would be advantageous to run the proposed agreements through the Rural Development Division of the United States Department of Agriculture prior to presentation to our respective bodies. The Rural Development Division of the United States Department of Agriculture has indicated that, based upon the nature of the agreements, it is not necessary for them to approve such and therefore the parties are at libeliy to proceed as they deem in their best interest. Dear Mr. Ray: RE: Emergency Connection Contracts Owasso Public Works Authority and Rural Water District No. Washington County, Oklahoma ,. Bailey Ranch I and Country Estates V Manager March 11, 2002 FAX 918-582-0166 918-582-7447 Attorney at Law Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 RONALD D. CATES RDC:rsh Director of Public Warks F. Robert Carr, Original Documents: Marcia Boutwell =""",./ Ronald D. Cates City Attorney Accordingly, I am transmitting the original ofthese documents to Marcia Boutwell, as City Clerk for her retention pending further action. I am transmitting copies to yourself as well as Mr. Carr for and consideration. Should any questions concerning this matter, please do not hesitate to contact me. agreement relating to Country Estates V, a subdivision located within the city limits of the City of Owasso, Oklahoma; however, within the service area of Rural Water District No.3, Washington County, Oklahoma. The approach taken on the agreement relating to Country Estates V is basically identical to that for Bailey Ranch Estates I with merely the provider and the recipient of the service being changed. Page 2 of 7 1.10. Supplying Purveyor. Supplying Purveyor shall mean either Water District or OPW A, whichever is supplying water service (either Emergency Service or Extended Service) to the other pursuant to this Agreement. 1.9. Receiving Purveyor. Receiving Purveyor shall mean either Water District or OPW A, whichever is receiving water service (either Emergency Service or Extended Service) from the other pursuant to this Agreement. 1.8. Supply Point. Supply Point shall mean the "CountryEstates V Meter" located at the eastern most corner of Lot 1, Block 1, to the Country Estates V subdivision. 1.7. Extended Service Water Rate. Extended Water Service Rate shall mean$3.58 per thousand gallons of water received by Receiving Purveyor. 1.6. Emergency Service Water Rate. Emergency Service Water Rate shall mean $3.00 per thousand gallons of water received by Receiving Purveyor. 1.5. Extended Service Period. Extended Service Period shall mean all those periods not deemed an Emergency Service Period herein. 1.4. Emergency Service Period. Emergency Service Period shall mean a period not to exceed thirty (30) days. An Emergency Service Period shall be deemed complete and shall terminate upon the expiration of said thirty (30) days, or upon termination of water service during the period at the request of Receiving Purveyor. Each party hereto will be entitled to receive their respective number of emergency service periods at the Emergency Service Water Rate. Once invoked, an Emergency Service Period is deemed used and neither of the parties may invoke the usage of a part or fraction of an Emergency Service Period. The number of Emergency Service Periods are limited to three (3) periods per party, per year (See 3.3. below). 1.3. Extended Service. Extended Service shall mean all other water service provided by one of the parties to the other which is not provided during an Emergency Service Period, said Emergency Service Period(s) being limited by Paragraph 3.3. an any to meet a bona fide Water shall not set forth in Paragraph parties to the other Emergency period or periods outside 1.1. Water Service. Water Service shall mean either Emergency Service or Extended Service. However, an emergency need is a prerequisite for any right to water service herein (See Article below). For the purposes ofthis Agreement, the following terms have the following meanings: Article 1 Definitions Page 3 of 7 3.5. Payment for Water Service. The Receiving Purveyor shall, on or before the loth day of each month, pay the Supplying Purveyor for all water delivered for Emergency Service and/or Extended Service during the preceding calendar month at the cOHesponding rate. 3.4. Extended Service Period. Any period wherein there is a request for water service outside the parameters of Paragraph 3.3. shall be deemed to be an Extended Service Period and all water and services received will be subject to the Extended Service Water Rate. 3.3. Emergency Service Period(s) - Limitation. Emergency Service may be provided to each party under the telms set forth herein, but shall not be provided for longer than thirty (30) days per Emergency Service Period. The Receiving Purveyor, whether Water District or OPW A, shall be entitled to no more than three (3) Emergency Service Period(s) per calendar year during the term of this Agreement. Each party will separately be entitled to said number of annual Emergency Service Periods as a "Receiving Purveyor". When one of the parties, as a Receiving Purveyor, has used its limited number of Emergency Service Periods as set forth above, said party, if requesting additional service as a Receiving Purveyor, will be deemed to be requesting Extended Service and shall be billed for water received at the Extended Service Water Rate. Notice Required. The Receiving Purveyor shall, in the event of circumstances requiring water service, provide as much notification as possible to the Supplying Purveyor, but not less than two (2) hours notice from Monday through Friday, and at least four (4) hours notice otherwise, including Saturdays, Sundays and holidays. on shall, an Water provide Water to Notice shall as set forth in Section 3 below. providing Water Service, Supplying shall sell and deliver to the Receiving Purveyor such volume of water as the Receiving Purveyor may require, but not to exceed 125,000 gallons per day. Receiving Purveyor shan pay Supplying Purveyor for the Water Service provided at the corresponding Emergency Service or Extended Service rate, whichever the case may be. The parties expressly understand and agree that Supplying Purveyor's obligation to provide Water Service is specifically conditioned and limited by Article IV below. Article 3 2.1. This Agreement, unless otherwise telminated as provided for herein, shall be in effect from the 1 st day of January, 2002, until the 31 st day of December, 2007. Article 2 Term of Agreement Page 4 of 7 4.5. Water Service - Costs of Turning Meter On and Off. Every time the Receiving Purveyor requests Water Service, the Receiving Purveyor shall promptly pay to the Supplying Purveyor $25.00. Receiving Purveyor shall also be required to pay Supplying Purveyor for turning off the meter when service is discontinued at a rate of $25.00 per occurrence. 4.4. Supplying Purveyor Not Liable for Failure to Provide Water Service, or Curtailment or Suspension of Water Service. In no event shall the Supplying Purveyor be liable to the Receiving Purveyor, or to any customer of the Receiving Purveyor, for failure to deliver water, or for suspension or curtailment of water service. 4.3. Supplying Purveyor's Right to Curtail or Suspend - No Limitations on Mode or Manner. The right to curtail or suspend delivery shall include curtailment or suspension in whole or in part, limiting hours of delivery, proration with other customers of the Supplying Purveyor, or in any other manner. The manner and duration of any curtailment or suspension shall be at the Supplying Purveyor's sole discretion, and the Supplying Purveyor's decision to curtail or suspend water service shall be final and conclusive. Failure of the Receiving Purveyor to make payment of regular monthly billings when the same shall be due and owing. 4.2.2. Failure of the Receiving Purveyor to curtail use of water by resolution and enforcement as set forth in Paragraph 3.6. above. 4.2.3. The other party's breach of any of the terms and conditions of this Agreement. 4.2.4. Upon the expiration of an Emergency Service Period. Curtailment or Suspension of Water Service - Other Conditions. The parties may also curtail or suspend delivery of water service under this Agreement if any of the following conditions exist: ilPr of Water Service to The expressly that customers will to receive substandard service order to facilitate the other entity's needs under tenns Agreement. this end, the Supplying Purveyor may at any time curtail or suspend in the sole discretion of Supplying Purveyor, Supplying Purveyor's customers will receive substandard service because of its obligation under this Agreement. For the purposes of this paragraph substandard service includes, but is not limited to, inadequate or substandard service as defined by the Oklahoma State Department of Environmental Quality. Article 4 or 3.6. Rationing and Conservation of Water. If the emergency which precipitates the need for Water Service occurs during a drought or other emergency requiring conservation, the Receiving Purveyor shall curtail the use of water by resolution and enforcement, and shall call for the same conservation or other measures in the same mamler as required by the Supplying Purveyor under such circumstances. Page 5 of 7 6.4. Water Pressure. The Receiving Purveyor understands and agrees that the water pressure to the Supplying Purveyor's delivery point may vary depending upon the demands placed on the Supplying Purveyor's water system, and that the Receiving Purveyor's rate of taking water from the Supplying Purveyor's water system shall not reduce the residual pressure of the Supplying Purveyor's water system at the Supply Point below twenty-five (25) pounds per square inch (25 psi) at any time. 6.3. Receiving Purveyor's Facilities~ Responsibility of Receiving Purveyor. The Receiving Purveyor shall furnish and maintain all water lines, pipe connections and other appurtenances and facilities required to transport water from the Supply Point to the Receiving Purveyor's customers. The Receiving Purveyor shall at all times maintain its water system in a state of repair so as to prevent the waste of water through any leakage from said water system. It is expressly understood that Receiving Purveyor is solely responsible for all facilities on Receiving Purveyor's side of the Supply Point. Calibration of Meter; Corrections. The parties hereto mutually agree that either party, for any reason and at any time, may calibrate the Supply Point water meter. The party requesting the test shall notify the other party in writing at least forty-eight (48) hours in advance. A meter registering not more than 3% above nor 3% below the test target shall be deemed to be accurate. Should OPW A request a meter test, it shall bear the cost at its sole expense. If any test made at the Water District's request discloses that the meter is inaccurate, OPW A shall bear the cost. However, if a test requested by Water District determines the meter to be accurate Water District will bear the cost of said test. 6.1. Ownership of Facilities. It is mutually understood and agreed upon by the parties that this Agreement shall not affect the ownership rights with respect to any and all water lines, meters, valves and other appurtenances thereto. To this end, any line, valve, connection or other appurtenance presently owned by Water District will remain the property of said Water District. Likewise, any line, valve, connection or other appurtenance presently owned by OPW A will remain the property of the OPW A. Currently, the meters, valves and other connections located at the Supply Point which control the water delivered to the Water District are, and shall remain, the property ofthe OPW A. 6 5.1. Termination Upon Breach. Whenever a party breaches any of the terms of this Agreement, the other party may telminate the Agreement upon ten (10) days written notice of its intention to do so, unless the breach is cured by the offending party within ten (10) days of receipt of notice. It is mutually understood and agreed that this Agreement is violated and a material breach has OCCUlTed when the Receiving Purveyor fails to pay any bill accruing under this Agreement pursuant to the terms set forth herein, or ifthe Receiving fails to curtail use water resolution and as Paragraph Article 5 Termination of Agreement Page 6 of 7 7.6. Duplicate Originals. This Agreement may be executed in duplicate originals, each such duplicate original shall be deemed to be an original, and all such duplicate originals taken collectively shall constitute one instrument for all purposes. 7.5. Entire Agreement. This Agreement represents the entire, integrated agreement between the Water District and OPW A, and supersedes all prior negotiations, proposals, representations, commitments, understandings, contracts or agreements made or entered into by the parties, either written or oral, with respect to water service to the Country Estates V area. Additionally, this Agreement may not be modified or amended except by a written instrument executed by both parties. This Agreement shall be governed by the 7.4. Laws of the State of Oklahoma laws of the State of Oklahoma. 7.3. Partial Invalidity. If any part of any provision of this Agreement shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity only, without in any way affecting the remaining parts of such provision or the remaining provisions, tenns, covenants or conditions ofthis Agreement. 7.2. Captions. The captions, headings, and anangements used in this Agreement are for convenience only and do not in any way affect, limit, amplify, or modify the tenns and provisions hereof. shall to - - parties herein, and to each the parties' respective successors Likewise, this Agreement shall be binding on the parties hereto and their respective successors and assigns. 7 6.5. No Water Volume or Pressure Warranties. The Receiving Purveyor understands and agrees that Supplying Purveyor makes no wananties, express or implied, with respect to water volume or pressure under any circumstances or conditions, including, but not limited to, any water volume or pressure needed for fire protection. Emergency failures of pressure or supply due to line breaks, power failure, flood, fire, and use of water by fire fighters, or other catastrophes or acts of nature, shall excuse the Supplying Purveyor for such reasonable periods of time as may be necessary to restore service. Page 7 of 7 Chainnan RURAL WATER DISTRICT NO.3 WASHINGTON COUNTY, OKLAHOMA Ronald D. Cates Attorney for OPW A Larry R. Steidley, Jr. Attorney for Water District Approved as to FOlm: Secretary ATTEST: ATTEST: Page 1 of 7 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for such other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, Water District and OPW A hereby agree as follows: Agreements --------------------------------------------------------------------- --------------------------------------------------------------------- 6. Therefore, since each party may from time-to-time require an emergency supply of water, both parties agree to reciprocally purchase and sell water to and from each other on a temporary emergency basis to serve the area in and around Bailey Ranch I pursuant to the covenants and terms hereinafter described. 5. OPW A agrees, on a temporary basis only, to assist Water District in serving water to the area adjacent to Bailey Ranch I which is served by Water District should the need arise during the term of this Agreement. 4. Water District agrees, on a temporary basis only, to assist OPW A in serving water to Bailey Ranch I by agreeing to provide for temporary emergency water service pursuant to the terms ofthis Agreement as outlined below. in the 3. Water District may, at some time, be in need of the same emergency water area. 2. OPW A is in need of a supply of water in order to service a subdivision in its territory commonly known as Bailey Ranch Estates I, an addition to the City of Owasso, County of Tulsa, State of Oklahoma, according to the recorded plat thereof. 1. The Water District and operate water distribution systems which provide water to residents within their respective ten'itorial boundaries, both parties by agreement being respectful of the other's tell'itorial boundaries. THIS AGREEMENT FOR TEMPORARY EMERGENCY WATER SERVICE (this "Agreement"), made by and between Rural Water District No.3, Washington County, Oklahoma, an organization created pursuant to The Oklahoma Rural Water, Sewer, Gas and Solid Waste Management Districts Act, 82 S 1324.1 et. seq., as amended (hereinafter refelTed to as "Water District"), and the Owasso Public Works Authority, ("OPW A"), an Public Trust created pursuant to the S 1 et. seq., as AGREEMENT FOR TEMPORARY EMERGENCY WATER SERVICE Bailey Ranch Estates I Page 2 of 7 1.10. Supplying Purveyor. Supplying Purveyor shall mean either Water District or OPW A, whichever is supplying water service (either Emergency Service or Extended Service) to the other pursuant to this Agreement. 1.9. Receiving Purveyor. Receiving Purveyor shall mean either Water District or OPW A, whichever is receiving water service (either Emergency Service or Extended Service) from the other pursuant to this Agreement. 1.8. Supply Point. Supply Point shall mean the "Bailey Ranch Estates I Meter". 1.7. Extended Service Water Rate. Extended Water Service Rate shall mean$3.58 per thousand gallons of water received by Receiving Purveyor. 1.6. Emergency Service Water Rate. Emergency Service Water Rate shall mean $3.00 per thousand gallons of water received by Receiving Purveyor. 1.5. Extended Service Period. Extended Service Period shall mean all those periods not deemed an Emergency Service Period herein. 1.4. Emergency Service Period. Emergency Service Period shall mean a period not to exceed thirty (30) days. An Emergency Service Period shall be deemed complete and shall terminate upon the expiration of said thirty (30) days, or upon termination of water service during the period at the request of Receiving Purveyor. Each party hereto will be entitled to receive their respective number of emergency service periods at the Emergency Service Water Rate. Once invoked, an Emergency Service Period is deemed used and neither of the parties may invoke the usage of a part or fraction of an Emergency Service Period. The number of Emergency Service Periods are limited to three (3) periods per party, per year (See 3.3. below). 1 Extended Extended Service shall mean all other water service provided by one of the parties to the other which is not provided during an Emergency Service Period, said Emergency Service Period(s) being limited by Paragraph 3.3. shall mean water to the other party to meet a bona fide or Water shall not be deemed to period or periods outside those set forth Paragraph 3 the Water Water Service shall mean either Emergency Service or Extended Service. However, an emergency need is a prerequisite for any right to water service herein (See Article III below). For the purposes ofthis Agreement, the following terms have the following meanings: Article 1 Definitions Page 3 of 7 3.5. Payment for Water Service, The Receiving Purveyor shall, on or before the 10th day of each month, pay the Supplying Purveyor for all water delivered for Emergency Service and/or Extended Service during the preceding calendar month at the corresponding rate. 3.4. Extended Service Period. Any period wherein there is a request for water service outside the parameters of Paragraph 3.3. shall be deemed to be an Extended Service Period and all water and services received will be subject to the Extended Service Water Rate. 3.3. Emergency Service Period(s) - Limitation. Emergency Service may be provided to each party under the terms set forth herein, but shall not be provided for longer than thirty (30) days per Emergency Service Period. The Receiving Purveyor, whether Water District or OPW A, shall be entitled to no more than three (3) Emergency Service Period(s) per calendar year during the term of this Agreement. Each party will separately be entitled to said number of annual Emergency Service Periods as a "Receiving Purveyor". When one of the parties, as a Receiving Purveyor, has used its limited number of Emergency Service Periods as set forth above, said party, if requesting additional service as a Receiving Purveyor, will be deemed to be requesting Extended Service and shall be billed for water received at the Extended Service Water Rate. Required. The Receiving Purveyor shall, in the event of circumstances requiring water service, provide as much notification as possible to the Supplying Purveyor, but not less than two (2) hours notice from Monday through Friday, and at least four (4) hours notice otherwise, including Saturdays, Sundays and holidays. shall be as set Section 3 below. In providing Water Supplying shall sell and deliver to the Receiving Purveyor such volume of water as the Receiving Purveyor may require, but not to exceed 125,000 gallons per day. Receiving Purveyor shall pay Supplying Purveyor for the Water Service provided at the corresponding Emergency Service or Extended Service rate, whichever the case may be. The parties expressly understand and agree that Supplying Purveyor's obligation to provide Water Service is specifically conditioned and limited by Article IV below. on Article 3 This Agreement, unless otherwise terminated as provided for herein, shall be in effect from the 15t day of January, 2002, until the 31 st day of December, 2007. Article 2 Term of Agreement Page 4 of 7 4.5. Water Service - Costs of Turning Meter On and Off. Every time the Receiving Purveyor requests Water Service, the Receiving Purveyor shall promptly pay to the Supplying Purveyor $25.00. Receiving Purveyor shall also be required to pay Supplying Purveyor for turning off the meter when service is discontinued at a rate of$25.00 per occurrence. 4.4. Supplying Purveyor Not Liable for Failure to Provide Water Service, or Curtailment or Suspension of Water Service. In no event shall the Supplying Purveyor be liable to the Receiving Purveyor, or to any customer of the Receiving Purveyor, for failure to deliver water, or for suspension or curtailment of water service. 4.3. Supplying Purveyor's Right to Curtail or Suspend - No Limitations on Mode or Manner. The right to curtail or suspend delivery shall include cmtailment or suspension in whole or in part, limiting hours of delivery, proration with other customers of the Supplying Purveyor, or in any other manner. The manner and duration of any cmtailment or suspension shall be at the Supplying Purveyor's sole discretion, and the Supplying Purveyor's decision to cmtail or suspend water service shall be final and conclusive. Failure ofthe Receiving Purveyor to make payment of regular monthly billings when the same shall be due and owing. Failure of the Receiving Purveyor to curtail use of water by resolution and enforcement as set forth in Paragraph 3.6. above. 4.2.3. The other patty's breach of any of the terms and conditions of this Agreement. 4.2.4. Upon the expiration of an Emergency Service Period. Curtailment or Suspension of Water Service - Other O::mditions. The parties may also curtail or suspend delivery of water service under this Agreement if any of the following conditions exist: or 01 Water Service to that neither customers will to receive substandard in order to facilitate the other entity's needs the terms this Agreement. this end, the Supplying may at any time curtail or suspend service if, in the sole discretion of Supplying Purveyor, Supplying Purveyor's customers will receive substandard service because of its obligation under this Agreement. For the purposes of this paragraph substandard service includes, but is not limited to, inadequate or substandard service as defined by the Oklahoma State Department of Environmental Quality. 4 Curtailment or 3.6. Rationing and Conservation of Water. If the emergency which precipitates the need for Water Service occurs during a drought or other emergency requiring conservation, the Receiving Purveyor shall curtail the use of water by resolution and enforcement, and shall call for the same conservation or other measures in the same manner as required by the Supplying Purveyor under such circumstances. Page 5 of 7 6.4. Water Pressure. The Receiving Purveyor understands and agrees that the water pressure to the Supplying Purveyor's delivery point may vary depending upon the demands placed on the Supplying Purveyor's water system, and that the Receiving Purveyor's rate of taking water from the Supplying Purveyor's water system shall not reduce the residual pressure of the Supplying Purveyor's water system at the Supply Point below twenty-five (25) pounds per square inch (25 psi) at any time. 6.3. Receiving Purveyor's Facilities, Responsibility of Receiving Purveyor. The Receiving Purveyor shall furnish and maintain all water lines, pipe connections and other appurtenances and facilities required to transport water from the Supply Point to the Receiving Purveyor's customers. The Receiving Purveyor shall at all times maintain its water system in a state of repair so as to prevent the waste of water through any leakage from said water system. It is expressly understood that Receiving Purveyor is solely responsible for all facilities on Receiving Purveyor's side of the Supply Point. 6.2. Calibration of Meter; Corrections. The parties hereto mutually agree that either party, for any reason and at any time, may calibrate the Supply Point water meter. The party requesting the test shall notify the other party in writing at least forty-eight (48) hours in advance. A meter registering not more than 3% above nor 3% below the test target shall be deemed to be accurate. Should OPW A request a meter test, it shall bear the cost at its sole expense. If any test made at the Water District's request discloses that the meter is inaccurate, OPW A shall bear the cost. However, if a test requested by Water District determines the meter to be accurate Water District will bear the cost of said test. 6.1. Ownership of Facilities. It is mutually understood and agreed upon by the parties that this Agreement shall not affect the ownership rights with respect to any and all water lines, meters, valves and other appurtenances thereto. To this end, any line, valve, connection or other appmienance presently owned by Water District will remain the property of said Water District. Likewise, any line, valve, connection or other appurtenance presently owned by OPW A will remain the property of the OPW A. Currently, the meters, valves and other connections located at the Supply Point which control the water delivered to the OPW A are, and shall remain, the property ofthe OPW A. 45 5.1. Termination Upon Breach. Whenever a pmiy breaches any of the terms of this Agreement, the other party may terminate the Agreement upon ten (10) days written notice of its intention to do so, unless the breach is cured by the offending pmiy within ten (10) days of receipt of notice. It is mutually understood and agreed that this Agreement is violated and a material breach has occurred when the Receiving Purveyor fails to pay any bill accruing under this Agreement pursuant to the terrns set forth herein, or if the Receiving fails to use water and as 3 Article 5 Termination of Agreement Page 6 of 7 7,6, Duplicate Originals. This Agreement may be executed in duplicate originals, each such duplicate original shall be deemed to be an original, and all such duplicate originals taken collectively shall constitute one instrument for all purposes. 7.5. Entire Agreement. This Agreement represents the entire, integrated agreement between the Water District and OPW A, and supersedes all prior negotiations, proposals, representations, commitments, understandings, contracts or agreements made or entered into by the pmiies, either written or oral, with respect to water service to the Bailey Ranch Estates I area. Additionally, this Agreement may not be modified or amended except by a written instrument executed by both parties. This Agreement shall be governed by the 7.4. Laws of the State Oklahoma laws of the State of Oklahoma. 7,3, Partial Invalidity. If any part of any provision of this Agreement shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity only, without in any way affecting the remaining parts of such provision or the remaining provisions, terms, covenants or conditions of this Agreement. 7,2. Captions, The captions, headings, and anangements used in this Agreement are for convenience only and do not in any way affect, limit, amplify, or modify the terms and provisions hereof. shall the parties herein, and to each the parties' respective successors assigns. this Agreement shall be binding on the parties hereto and their respective successors and assigns. 7 6,S, No Water Volume or Pressure Warranties. The Receiving Purveyor understands and agrees that Supplying Purveyor makes no wananties, express or implied, with respect to water volume or pressure under any circumstances or conditions, including, but not limited to, any water volume or pressure needed for fire protection. Emergency failures of pressure or supply due to line breaks, power failure, flood, fire, and use of water by fire fighters, or other catastrophes or acts of nature, shall excuse the Supplying Purveyor for such reasonable periods of time as may be necessary to restore service. Page 7 of 7 Chairman AUTHORlTY OW ASSO PUBLIC RURAL WATER DISTRlCT NO.3 WASHINGTON COUNTY, OKLAHOMA Ronald D. Cates Attorney for OPW A Larry R. Steidley, Jr. Attorney for Water District Approved as to Form: Secretary ATTEST: