RESO 1999-08 - Water Sale AgreementRESOLUTION NO. 99-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, APPROVING A WATER SALE AGREEMENT WITH WALKER COUNTY
RURAL WATER SUPPLY CORPORATION; AUTHORIZING THE CITY
MANAGER TO EXECUTE THE SAME IN BEHALF OF THE CITY; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the City has purchased the private water provider for a subdivision
situated in the extraterritorial jurisdiction ( "ETJ ") of the City known as the Timberwilde
Subdivision (the "Subdivision ") and is now the water provider for such Subdivision; and
WHEREAS, WCRWSC has facilities near the Subdivision and can provide a supply
of water to the City for use in the Subdivision during such times that the present water supply
is not sufficient to meet the water needs of the residents in the Subdivision; and
WHEREAS, the City is desirous of entering into an arrangement with WCRWSC for
the sale of water to the City in order to insure that the Subdivision has an adequate supply
of water until such time as the City can construct a water supply line along S.H. 30 to the
Subdivision which is anticipated to be completed by September, 2000; and
WHEREAS, the City has constructed the interconnect including 800 feet of 8" inch
water line in order to receive water from the WCRWSC system; and
WHEREAS, WCRWSC tariffs allow it to negotiate a "bulk" water rate with
customers and the City and WCRWSC desire to enter into a "bulk" water rate contract;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, that:
SECTION] : The Water Sale Agreement between the City of Huntsville, Texas, and
Walker County Rural Water Supply Corporation attached hereto as Exhibit "1" and
incorporated herein is hereby approved and the City Manager of the City of Huntsville,
Texas, is authorized to execute the same in behalf of the City of Huntsville.
SECTION 2: That this Resolution shall become effective from and after the date of
its passage.
PASSED AND APPROVED ON THIS 29TH DAY OF JUNE, 1999.
CITY OF HUN MLLE EXAS
By. 4
William B. Green, Mayor
Darma Welter, City Secretary
APPROVED AS TO FORM:
O'---
ault,‘wn, City Attorney
WATER SALE AGREEMENT
This WATER SALE AGREEMENT (the "Agreement ") is entered into as of the
0"1 day of June, 1999, by and among the CITY OF HUNTSVILLE, TEXAS (the
"City "), and WALKER COUNTY RURAL WATER SUPPLY CORPORATION (the
"WCRWSC ").
WHEREAS, the City has purchased the private water provider for a subdivision
situated in the extraterritorial jurisdiction ( "ETJ") of the City known as the Timberwilde
Subdivision (the "Subdivision ") and is now the water provider for such Subdivision; and
WHEREAS, WCRWSC has facilities near the Subdivision and can provide a
supply of water to the City for use in the Subdivision during such times that the present
water supply is not sufficient to meet the water needs of the residents in the Subdivision;
and
WHEREAS, the City is desirous of entering into an arrangement with WCRWSC
for the sale of water to the City in order to insure that the Subdivision has an adequate
supply of water until such time as the City can construct a water supply line along S.H.
30 to the Subdivision which is anticipated to be completed by September, 2000; and
WHEREAS, the City has constructed the interconnect including 800 feet of 8"
inch water line in order to receive water from the WCRWSC system; and
WHEREAS, WCRWSC tariffs allow it to negotiate a "bulk" water rate with
customers and the City and WCRWSC desire to enter into a "bulk" water rate contract;
NOW, THEREFORE, in consideration of the premises, and the agreements,
mutual covenants, representations, and warranties hereinafter set forth, an other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto covenant and agree as follows:
1. WCRWSC agrees to sell to the City and the City agrees to buy from WCRWSC such
water as is needed to supplement the water supply to the Timberwilde Subdivision at
a cost equal to the City's Residential Water Rate as presently established and from
time to time amended. The current City of Huntsville Residential Water Rate is $1.80
per thousand gallons of water.
2. The purchase of water by the City from WCRWSC shall be for a period of time
commencing with the execution of this Agreement and continuing until such time as
the City has completed the construction and placed into operation a water supply line
parallel to S.H. 30 from West Hills Drive in the City of Huntsville to the Timberwilde
Subdivision.
3. City shall at its expense provide an interconnection between the Timberwilde
Subdivision and WCRWSC.
Water Sale Agreement
Page 2
4. Upon the completion of the City's water supply line along S.H. 30 to the Timberwilde
Subdivision and it becoming operational, the City shall transfer ownership in the
interconnection constructed by the City to WCRWSC.
5. Upon the completion of the City's water supply line along S.H. 30 to the Timberwilde
Subdivision and it becoming operational, the City agrees to sell to WCRWSC such
water, on an emergency basis, as requested by WCRWSC at a cost equivalent to the
City's current Residential Water Rate as the same may be amended from time to time.
6. The cost of water sold from one party to the other party pursuant to the terms of this
Agreement shall be billed on a monthly basis and the party being billed shall pay the
invoice within twenty (20) days after receiving the invoice.
This Agreement shall be construed under and governed by the laws of the State of
Texas, and applicable venue shall be Walker County, Texas.
8. Each party relies upon the other's representation as to the representing party's
authority to enter into this Agreement.
9. The term of this Agreement is five (5) years. It may be extended by the mutual
agreement of the parties.
EXECUTED this c''/ day of June, 1999.
CITY OF
By:
AT ST:
Danna Welter, City Secretary
Approved as to Form:
aul C. Isham, City Attorney
Ge rj ' ipes, City Ma i ger
Water Sale Agreement
Page 3
WALKER COUNTY RURAL WATER
SUPPLY CORPORATION
By:
Ja
es Morrison, Manager
37