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HomeMy WebLinkAbout94-10. . n ~~ RESOLUTION N0. 94-10 ADOPTING THE 1994 INTERGOVERNMENTAL WATER AGREEMENT BY AND BETWEEN THE TOWN OF PULASKI AND PULASKI COUNTY ,~~ d ~. BE IT RESOLVED by the Town Council of the Town of Pulaski, Virginia, sitting in regular session on June 21, 1994, that Intergovernmental Water Agreement is hereby adopted in the form attached hereto. The Vice Mayor of the Town of Pulaski is authorized to sign the attached agreement. This agreement is effective upon signing and is adopted on June 21, 1994, by recorded vote of the Town Council as follows: Charles D. Crispin - Awe Andrew L. Graham - HV/-' John A. Johnston - Ave E. G. Black, Jr. - A3~ Roy H. D'Ardenne, Jr. - Ave Alma H. Holston - Ada W. H. Schrader, Jr. - Ave Robert N. Glenn - ASP TOWN OF PULASKI, VIRGINIA By: Gary Hancock, Mayor Attest: c!~ R th A. Harrell Clerk of Council 1994 INTERGOVERNMENTAL WATER AGREEMENT This 1994 Intergovernmental Water Agreement is made on Ju f ti ~ 1994, between the Town of Pulaski, Virginia (the Town), party of the first part, the Pulaski County Public Service Authority (the PSA), party of the second part, and the Board of Supervisors of the County of Pulaski, Virginia (the County), party of the third part. 1. RECITALS. a. The Town and the County are local governments which have established comprehensive water treatment and delivery systems to residential, commercial, and industrial water users in the incorporated and unincorporated areas of Pulaski County, Virginia. The PSA is an independent entity established by the County to maintain, operate, and control its system. b. The Town, the County, and the PSA have recognized the benefits of cooperating with each other in providing water service to each other in the past, as evidenced by their agreements of February 20, 1973; August 25, 1978; August 18, 1982; and March 3, 1992. c. The Town, the County, and the PSA also recognize that when an emergency exists which interferes with the ability of any party to provide treated water to its water users, any available surplus water should be provided to that party on an emergency basis at a uniform cost, so that the impact of any emergency water shortage on the water users will be lessened and so that the governmental entity will not be burdened financially. d. The parties agree that to clarify the status of existing agreements and to provide a uniform basis for providing both nonemergency and emergency supplies of water to each other's service areas in the future, it is preferable to have a single document setting forth the agreement of the parties as to the manner in which such water is now and is to be supplied by the parties to each other. e. The County joins in this agreement for the purposes of agreeing to the replacement of existing agreements by this document and to agree that as owner of any asset operated by the PSA, it will take no action to interfere with the rights or obligations of either party under this agreement. It is the intention of the parties that the Town and the PSA will be the parties actually selling and buying water under this agreement. 2. RATE STRUCTURE. a. General Considerations. The parties agree that purchases between the parties should be on a uniform basis utilizing agreed formulas based on identifiable factors. 1994 Intergovernmental Water Agreement 1 06/17/94 The rate formula for nonemergency purchases will include not only water treatment costs but also a portion of operation and maintenance, debt service, and administrative costs. The rate formula for emergency purchases will include not only water treatment costs but also a portion of operation and maintenance. However, debt service and administrative costs will not be billed on emergency purchases. Since the costs of water treatment and delivery can vary from year to year, but the parties must plan on a fiscal year basis, the rate will be calculated by application of the formulas as to water provided on and after July 1 of each year, utilizing cost factors from the fiscal year ending the preceding June 30. Any annual rate change will be calculated and presented to the governing body of each party by March 31 of each year, so that the parties will have informed budget deliberations. The formulas will be reviewed and revised by all parties by December 31, 1997 and every five (5) years thereafter. Any adopted formula will continue to be used until superseded, unless otherwise agreed by the parties. b. Initial Formulas. The initial formulas are based on the existing line items of the PSA budget. The parties agree that for the sake of uniformity in future years, no material change in the accounting procedures used in producing these line items will be made without the prior consent of all parties. These formulas will apply to all water delivered by one party to another party. The emergency water purchase formula includes a hold harmless provision to offset any loss of revenue to the PSA from the Town of Dublin due to emergency water supply to the Town of Pulaski. The initial formulas for emergency and nonemergency purchases are attached hereto as F~chibit A. c. Initial Rate. The parties agree that the initial rate for nonemergency water will be $1.54 per thousand gallons delivered. The parties agree that the initial rate for emergency water will be $0.86 per thousand gallons delivered. These rates will be effective for all water delivered from January 1, 1993 to June 30, 1994. Any payment made since January 1, 1993 for less than these rates will be credited to the payer party, and any balance due will be paid within 30 days of the execution of this agreement. 1994 Intergovernmental Water Agreement 2 06/17/94 d. Settlement. Settlement based on actual expenses as applied through the formula incorporated above to the rate charged shall be made by January 1 of the year following the end of each fiscal year. Credits shall be granted to or charges paid by the Town of Pulaski on or before the above settlement date based on the formula and the actual amount paid for the previous fiscal year ending June 30, or part thereof. Interest on past due amounts will be the same as on all other accounts of the provider. Should either the Town of Pulaski or the Pulaski County Public Service Authority for any reason delaying in completing settlement as set forth above, the delaying party to this agreement shall pay to the nondelaying party interest at the rate of ten percent (10%) per annum on the settlement amount outstanding until such settlement is paid in full. 3. TERM.. This agreement will be effective as to all water provided tsy one party to another party through the fiscal year ending June 30, 2033. It will continue thereafter on a year to year basis unless one party gives ninety (90) days notice of termination prior to the expiration of any term. 4. RELATIONSHIP TO EARLIER AGREEMENTS. This agreement is intended to supersede the prior agreements of February 20, 1973, August 25, 1978, August 18, 1982, and March 3, 1992. Any dispute as to rates and costs for water furnished prior to January 1, 1993 is settled by execution of this agreement and each party accepts payments previously made in satisfaction of all charges for such water. 5. AGREEMENT TO CONTINUE TO PROVIDE WATER. a. The County and the PSA agree to continue to provide water to the Town in an amount necessary,to meet the present and future needs of those customers lying in an existing Town, seivice area ying outside the Towh's i:orpo~ate limits along Route 6:1,1, including but.fiot- limited to a six huhdred foofcorridor and the Newbem Heights Subdivision."Fhe cumerit points of transmission are along Newbem Road, Route 11, and the 46 Sewer Pump Station on Wumo Road, Route 694. b. The Town agrees to continue to provide up to 30,000 gallons per day of surplus water to the County and the PSA at the existing connection point at the Mt. Olivet Pump Station for residential use in the Mt. Olivet Section of Pulaski County. c. The Town agrees to continue to provide up to 600,000 gallons per month to the County and the PSA, at a point located at the end of the existing Town waterline 1 mile from the corporate 1994 Intergovernmental Water Agreement 3 06/17/94 limits on Route 640, for the use of the Brookmont Road residents through a 1992 FmHA project. d. The amounts set forth per day/month are maximums for any given day/month and are not averages. e. All water supplied under this section will be at the nonemergency rate. 6. GENERAL AGREEMENT TO PROVIDE ADDITIONAL NEEDED WATER. a. Emergency Purchases. Emergency water purchases will include but not be limited to purchases which are made necessary by unforeseen circumstances to preserve the health and safety of the populace and to keep commerce and industry operating without interruption. Such circumstances would include but not be limited to water plant inoperability, main water supply breaks, power failure, flood, fire and use of water to fight fire, drought, earthquake or other catastrophe. Each governmental unit usually has surplus water available over and above the amounts needed for its own residential, commercial, and industrial customers and the amount needed for a reasonable reserve. Such surplus water shall be made available at the emergency rate to any party requesting the same for a period of up to five (5) days. Requests shall be in writing between the chief administrative officer of each party. Availability at the emergency rate for longer than five (5) days shall be by mutual agreement of the To•.vn and PSA. In cases of threatened severe injury to persons or property, all parties will make a good faith effort to divert water from nonessential usage so as to make as much water as possible reasonably available. b. Nonemergency Purchases. From time to time each party may have requests for service in areas where the other party already has water lines, or may otherwise need additional water for residential, commercial, or industrial use. Each party agrees to make available to the other any uncommitted or surplus water that it has on hand, at the nonemergency rate set forth herein. The parties recognize that a party's first responsibility is to existing customers within its service area and that surplus supplies may decrease as a locality's customer needs increase. There will be no obligation on any party to produce or supply water if no surplus can be made available without impacting the providers ability to supply its own customers and to maintain a reasonable reserve. __- - Each party will give reasona6~notice-o~cGcums~e thafwitt sig`niFicantly ec~rea~s th~- surplus it will have available. 1994 Intergovernmental Water Agreement 4 06/17/94 7. EXCLUSIVE SERVICE AREAS. The County and the PSA recognize that the Town's corporate limits, and its existing rvice area lying outside the Town's corporate limits, including but not limited to the Newbern Heights Subdivision and a six hundred foot wide corridor along Route 611 from the town limits at Wumo to the Newbern Heights Subdivision, are the exclusive service area of the Town, except for the existing PSA extensions to Morehead Lane and Canterbury Lane which were installed with the Tcwn's permission. b. The Town recognizes that the unincorporated areas of Pulaski County, except for the existing Town service area set forth above, are the exclusive service area of the County and the PSA. c. Neither party will provide water to a customer within another party's exclusive service area without the prior express consent of the other party. d. Nothing contained herein will give any party an ownership or equitable interest in the other's water production and delivery system. 8. WATER QUALITY AND QUANTITY. a. The water will be furnished at a reasonably constant pressure and will be of like quality provided to the selling locality's own customers. If a greater pressure or purity is required by the purchaser than that normally available at the point of delivery, the cost of providing such greater pressure or purity will be borne by the purchaser. b. Emergency failures of pressure or supply from the seller due to main water supply breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the selling locality from performance for such reasonable period of time as may Pre necessary to restore service. c. The purchasing locality will be responsible for furnishing, installing, operating, and maintaining at its own expense at the point of delivery or such point as is agreed by the parties, all metering equipment, including any meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the purchaser. Such equipment will be calibrated whenever requested by the seller, but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2%) above or below the expected test result shall be deemed accurate. The previous readings of any meter found to be inaccurate will be corected for the three (3) months prior to the test in accordance with the percentage of inaccuracy found by the test unless otherwise agreed. Inaccurate equipment will be replaced at the expense of the purchaser. d. All parties may verify any meter readings at any reasonable time. e. The purchasing party will be responsible for insuring that any connections to a selling party's system are made in compliance with recognized engineering standards and codes. 1994 Intergovernmental Water Agreement 5 Draft 09/28/94 9. NO OBLIGATION TO BUY. Nothing contained herein will obligate any party to purchase any minimum amount of water from any other party. 10. BILLING. a. Meters will be read and bills produced on the same schedule as like customers of the selling locality. The purchasing locality will pay said bill by the due date normally scheduled, unless otherwise agreed by the parties at the time. b. Each party will be responsible for billing its own customers for water purchased under this agreement. c. The billing party will be entitled to charge interest and penalties on past due amounts in the same manner as other customers are charged. 11. DISPUTE RESOLUTION a. General Policy. In the event that a dispute arises between the parties, no party shall refuse to deliver water to another party unless the quantity requested will imperil the ability to meet the immediate needs of the water users of the provider. The then existing rates and formulas will continue until a decision by the arbiters or court hearing the matter. b. Disputes on Rate Calculation or Formula Changes. In the event that the parties have a disagreement on the annual rate calculation or cannot agree on any proposed five year change to the formulas, the parties will submit to a special panel of arbiters for binding arbitration on the matter. No party may proceed with any court proceeding unless arbitration is waived by the other parties. Each arbiter must be an administrative officer (not necessarily the chief administrative officer) of a Virginia locality or Public Service Authority having experience in budgeting and financial matters relating to the treatment and delivery of water. No arbiter may be from a locality or PSA having any contractual agreements with any party, unless disclosed to and waived by the other parties. Any party desiring arbitration may request the same in writing at any time after the due date for a rate or formula change, or earlier if all other parties agree. Within ten (10) days thereafter, the Town will select one arbiter and the County and PSA jointly will select one arbiter. The two arbiters will select the third within fourteen (14) days. The parties will request that the arbiters meet as soon as possible with representatives of the parties. The arbiters will decide on the formality or lack of formality, but will give each party a 1994 Intergovernmental Water Agreement 6 06/17/94 reasonable opportunity to present any relevant information initially or in rebuttal. Each party will also furnish any additional information requested by the arbiters. There will be no ex arte communication with the arbiters and any information fumished to the arbiters will be furnished to the other parties. Each party will advance one-third the costs and expenses of the arbiters, including a reasonable per diem for each arbiter, as may be requested by the panel. A majority decision of the arbiters will be binding on the parties. The relief granted by the arbiters may (but need not) be retroactive to the date a rate or formula change would have been effective if undisputed. The arbiters are empowered to fashion such relief as is necessary to maintain a uniform ar~d equitable rate structure for the provision of water among the parties as expressed above. The arbiters will decide on the final apportionment of all costs and expenses of the proceeding. No attorney fees will be awarded by the panel unless there is a finding of bad faith by a party. The award of the panel will be final and nonappealable. If any party fails to comply with the award of the panel, the other party may seek enforcement of the panel decision in the Circuit Court of Pulaski County, together with costs, damages, and attorney fees. In recognition of the fact that it is in the best interest of all parties to have a prompt resolution to any disagreement, the failure of the arbiters to render a decision within ninety (90) days from the date that the third arbiter is named, shall give any party the right to stop arbitration at any time before a decision is given and to seek judicial remedies. c. Other Matters. For any matter other than disputes over the rate calculation or formula changes as set forth above, arbitration will be optional and will require the consent of all parties. However, once begun, the arbitration process will proceed and be binding as set forth above. For any matter not subject to arbitration, each party will have such remedies as are proper in law and/or equity. In case of default or breach, in addition to any other remedy at law or equity, or sanction imposed by the Court, the non defaulting party will be entitled to all court costs and attomey fees incurred as a result of such default or breach. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature. 12. PARTIES BOUND. This agreement will be binding upon and inure to the benefit of the parties and their successors in interest. 1994 Intergovernmental Water Agreement 7 06/17/94 While it is recognized that this agreement may have a beneficial effect for third parties, particularly the water customers of the parties, such parties have no right to rely upon or to enforce the terms of this agreement, nor to any damages from any party for any breach of this agreement. This agreement is made for governmental purposes between governments, and not for the benefit of any particular person or entity, and no rights hereunder may be assigned to any person or entity other than another locality or public body without the prior consent of the other parties. Each party warrants that it has full ai ithority to enter into this agreement subject to the limitations, if any, imposed by the provisions of general law. 13. CONSTRUCTION. This agreement is to be construed according to the laws of the Commonwealth of Virginia in effect on its effective date. 14. SEVERABILITY OF PROVISIONS. In the event that any provision or portions thereof be voided or modified by any court, the remaining portions or provisions thereof shall remain in full force and effect. 15. COPIES. This agreement has been executed in several counterparts and each counterpart shall have the full force and effect of an original. Any party may submit a photostatic copy of the signed agreement in lieu of the original to any court or panel in any proceeding involving the matters set forth herein. 16. MERGER AND AMENDMENTS. All discussions of the parties and oral representations are merged herein and are superseded by this agreement. No amendment, modification, or waiver of any of the terms shall be valid unless in writing and approved by each body in open session. 17. NOTICE Notice Under this agreement shall be given to each party as follows: PSA Executive Director Pulaski County Public Service Authority 143 Third Street. N.W. Pulaski, VA 24301 TOWN OF PULASKI 1994 Intergovernmental Water Agreement 8 06/17/94 Town Manager P. O. Box 660 Pulaski, VA 24301 BOARD OF SUPERVISORS Pulaski County Administrator 143 Third St., N.W. Pulaski, VA 24301 WITNESS THE FOLLOWING SIGNATURES AND SEALS THIS DAY OF ~TiJLY , 1994. TOWN OF PULASKI, VIRGINIA BY ~ _~,G Vice- yor Attest- XL~ ~.~ti~P Clerk BOARD OF SUPERVISORS, PULASKI COUNTY, VIRGINIA By_~lo ~,.. ~ l~~ ~Ch ' an Attest i , ~ rv GI a,. k PULASKI OUNTY PU LIC S ICE AUTHORITY .- BY c Chairman Attes , / ~ f cu a Director - - 1994 Intergovernmental Water Agreement 9 06/17/94 INITIAL FORMULA FOR WATER RATES FOR SALES AND PURCHASES BETWEEN THE TOWN OF PULASKI AND THE PULASKI COUNTY PUBLIC SERVICE AUTHORITY PR$ - Pulaski rate per thousand gallons consumed WT - Water Treatment costs (found in Department 4210 of budget detail for PSA) GB - Totat gallons (in thousands) of treated water billed throughout the service Authority area OM - Operation and maintenance costs (found in department 4207 and Department 9112 of PSA budget detail) DS - Debt service on county wide loan, repayment of county loan, and reserve (found in Department 4211 of PSA budget detail form). AD - Administrative costs (found in Department 4208 of the PSA budget detail) Note: No billing costs are associated with the Town of Pulaski PPR$EB - Pulaski rate per thousand gallons emergency needs rates consumed -Budget PR$ES - Pulaski rate per thousand gallons emergency needs rates consumed -Annual Settlement HH - Hold Harmless Rate amount for reduction in billing rate to Town of Dublin due to Pulaski emergency needs DR$ - Dublin rate per thousand gallons consumed GBE - Gallons emergency needs consumed by Pulaski GBD Gallons billed Dublin PR$ = WT + 10% OM + DS + 67% AD GB PR$EB - W T+ 10% OM GB PR$ES = WT + 10% OM + (HH X GBDI GB DR$ - WT + 15% OM + DS + 67% AD GB _ _. -- Hkl-V~~~1S°1 nn.,~."-.-Qe~o1~AD-BR$--- GB-GBE - -- 1994 Intergovernmental Water Agreement l0 06/17/94 TOWN OF PULASKI BUDGET WATER RATES FY 93-94 FORMUt.A FY 93 - 94 BUDGET PR$ = Pulaski Town rate per thousand gallons consumed PR$EB = Pulaski Town rate per ±housand gallons emer enc g y needs rates consumed -budget WT = Water Treatment Costs (4219 -Water Treatment Plant) 5392,997 GB = Total Gallons Billed FY 91 - 92 = 488,241,782 OM = Operation and Maintenance Costs (4207 -Water 28 829 Service) $253,294 & Capital Outlay ($35,000) x 10% , DS = Debt service on county wide loan with 10% reserve, 245 032 plus repayment of county loan (4211 -Debt Service , , 202,260 + 20,225 + 22,547) AD = Administrative Costs (4208 -Administration) 127,483 X 85 414 67% , PR$ FOR FY 93 - 94 $392.997 (wt) + $2g 82g (OM) + 245 032 (DS) - 85 414 (AD) 488,241,782 (GB) = 1.54 PR$EB FOR FY 93 - 94 $392.997 (WT) + 28 829 (OM) 488,241,782 (GB) _ 1994 fnter~overnmental WaterAgreementll $0.86 06/17/94