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RESO 1999-19 - Water Sale AgreementRESOLUTION NO. 99-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, APPROVING A RECIPROCAL 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 parties entered into a Water Sale Agreement in June 1999, for an interconnection and sale of water from WCRWSC to the City in order to supplement the water supply to the Timberwilde Subdivision; and WHEREAS, the parties desire to enter into an agreement that allows the City and WCRWSC to make additional interconnections where the water supply of one system or the other needs to be supplemented; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: SECTION 1: The Reciprocal 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. SECTION2: That this Resolution shall become effective from and after the date of its passage. PASSED AND APPROVED ON THIS 31ST DAY OF AUGUST, 1999. CITY OF H/UNTSVILLE, TEXAS By: William B. Green, Mayor ATT T: anna Welter, City Secretary APPROVED AS TO FORM: Paul C. Is am, City Attorney RECIPROCAL WATER SALE AGREEMENT This RECIPROCAL WATER SALE AGREEMENT (the "Agreement ") is entered into as of the 7 ?q day of August, 1999, by and among the CITY OF HUNTSVILLE, TEXAS (the "City "), and WALKER COUNTY RURAL WATER SUPPLY CORPORATION (the "WCRWSC "). WHEREAS, the parties entered into a Water Sale Agreement in June, 1999, for an interconnection and sale of water from WCRWSC to the City in order to supplement the water supply to the Timberwilde Subdivision; and WHEREAS, the parties desire to enter into an agreement that allows the City and WCRWSC to make additional interconnections where the water supply of one system or the other needs to be supplemented; NOW, THEREFORE, in consideration of the premises, and the agreements, mutual covenants, representations, and warranties hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows: WCRWSC agrees to sell to the City and the City agrees to buy from WCRWSC such water as is needed to supplement the City's water supply and the City agrees to sell to WCRWSC and WCRWSC agrees to buy from the City such water as is needed to supplement WCRWSC's system 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. A party desiring to make an interconnection at a certain location (the "Requesting Party ") shall notify the other party in writing at least sixty (60) days prior to making the interconnection. The non - Requesting Party shall have the right to reject the request by notifying the Requesting Party in writing of its rejection. 3. The Requesting Party shall, at its expense, provide the interconnection between the two systems. 4. Neither party shall be required to furnish water to the other party if it will jeopardize or prevent that party from providing a sufficient water supply to the customers of its system or if the water system facilities at a certain location are inadequate to provide a supply of water to the other party. 5. 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. 6. This Agreement shall be construed under and governed by the laws of the State of Texas, and applicable venue shall be Walker County, Texas. RECIPROCAL WATER SALE AGREEMENT Page 2 7. The terms of this Agreement shall be subordinate to any agreement between the parties for an interconnection at a certain location in effect at the time of the execution of this Agreement. 8. The City Manager or his /her designee of the City shall be authorized to make interconnections on behalf of the City and the Manager or his /her designee of WCRWSC shall be authorized to make interconnections on behalf of WCRWSC. If either the City Manager of the City or the Manager of WCRWSC designate another person to make such determinations, that person shall notify the other party in writing of such designation. 9. Each party relies upon the other's representation as to the representing party's authority to enter into this Agreement. 10. The term of this Agreement is five (5) years. It may be extended by the mutual agreement of the parties. EXECUTED this 3'1 day of August, 1999. CITY 0 By: G ipes, Ct ATTEST: Danna Welter, City Secretary Approved as to Form: aul C. sham, City Attorney 79 y ager XAS