2-22-2013

TOWN OF PLATTSBURGH

AND

TOWN OF SCHUYLER FALLS

WATER SUPPLY AGREEMENT

FOR

MACY LANE WATER DISTRICT

THIS AGREEMENT, made the ____day of ______2013, between BERNARD C. BASSETT, GERARD A. RENADETTE, THOMAS E. WOOD, JR., MARTIN D. MANNIX and PAUL D. LAMOY members of the Town Board of the Town of Plattsburgh, Acting for the TOWN OF PLATTSBURGH CONSOLIDATED WATER DISTRICT, an improvement district of the Town of Plattsburgh, with address 151 Banker Road, Plattsburgh, New York 12901 (hereinafter referred to as “TOPCWD”), party of the first part; and HAROLD ORMSBY, BARRY WHITE, LEONARD ROCK, MICHAEL REIL and GEORGE SEYMOUR, members of the Town Board of the Town of Schuyler Falls, and whereas, the TOWN OF SCHUYLER FALLS, acting for MACEY LANE WATER DISTRICT, an improvement district of the Town of Schuyler Falls, with address 997 Mason Street, Morrisonville, New York 12962 (hereinafter referred to as “MLWD”), party of the second part, has presented a proposed Water Supply Agreement to the Town of Plattsburgh.

WITNESSETH:

WHEREAS, The Towns of Plattsburgh and Schuyler Falls have cooperated in the provision of Water System Operation for other water districts in the Town of Schuyler Falls; and

WHEREAS, TOPCWD continues to have a surplus of treated water with the probability of said surplus being available for the foreseeable future; and

WHEREAS, TOPCWD currently provides treated water and operational services to the Town of Schuyler Falls’ Woods Mill and Morrisonville Water Districts; and

WHEREAS, it is in the best interest of the parties to sell treated water to the Town of Schuyler Falls acting for the MLWD pursuant to the terms and provisions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and Agreements set forth herein, and of the sum of ONE ($1.00) DOLLAR, lawful money of the United States, to each in hand paid by the other, receipt of which is hereby acknowledged, the parties hereto mutually covenant and agree as follows:

I SCOPE OF CONTRACT

1. The Town of Schuyler Falls acting for the MLWD and TOPCWD hereby agree that this Agreement and amendments thereto shall govern and apply to all water sold by the TOPCWD to MLWD and purchased by MLWD from TOPCWD during the term of this Agreement and any renewals thereof.

2. The Town of Schuyler Falls acting for the MLWD agrees that it will be responsible for and will pay to the TOPCWD within thirty (30) days of the date of each billing the total sum payable pursuant to the quarterly/monthly bill submitted by TOPCWD to MLWD, in accordance with the terms of this Agreement, amendments thereto and renewals thereof.

3. The Town of Schuyler Falls acting for the MLWD shall be responsible for the maintenance, repairs and replacements of all water mains, valves, fire hydrants, and all related appurtenances constituting a part of the MLWD water system commencing at the shut-off valve on the MLWD side of the meter pit located on the Town of Schuyler Falls side of the proposed meter pit to be installed along the Irish Settlement Road in the vicinity of the Town boundary.

4. By written request of the Town of Schuyler Falls, the TOPCWD shall provide services relating the maintenance responsibilities of MLWD. These services shall be performed on an annual basis and will continue until such time as the Town of Schuyler Falls request in writing that such services are no longer required from the TOPCWD. The cost for the services shall be as provided in Article V. Charges, of this agreement.

II TERM OF CONTRACT

1. The term of this contract commences on the date of this Agreement, the ___ day of ____ 2013, and ends on the 31st day of December, 2016 unless sooner terminated as set forth below.

III TERMINATION OR RENEWAL OF CONTRACT

1. At least one (1) year prior to the expiration of the original term of this Contract, each party herein shall give written notice to the other of its intention to terminate or renew this contract. In the absence of any such notice from either party, the parties agree that the term of this Agreement shall be renewed on a year-to-year basis.

2. In regard to any negotiation regarding any part of this Contract, the party requesting shall so notify the other in writing when it elects to renew said Contract subject to the specific term(s) or provision(s) being negotiated by the parties prior to the renewal becoming effective or the Agreement terminated in the event the negotiation fails and the party requesting such negotiation is not agreeable to the results of the negotiation. Commencing with the first year-to-year renewal, either party shall notify the other at least ninety (90) days prior to the expiration of the then current term of any of the terms or provisions to be renegotiated prior to such renewal becoming effective. In the event negotiations do not produce an Agreement by both parties prior to the end of the existing term, this Agreement shall be terminated as of the date of the existing term and neither party shall have any further rights hereunder, except that The Town of Schuyler Falls acting for the MLWD shall promptly pay to TOPCWD all bills for water sold and services rendered by TOPCWD to MLWD through the termination of the Agreement.

3. Notwithstanding anything to the contrary set forth in this Agreement, it is understood and agreed between the parties that TOPCWD is authorized to sell to MLWD only surplus treated water which is defined as water not required by TOPCWD for its users and other improvement districts of the Town of Plattsburgh.

4. TOPCWD reserves the right to reduce or discontinue complete delivery of treated water to MLWD in the event there is no surplus water as defined in the preceding paragraph “3” or because of drought, Act of God, any act of vandalism or terrorism, emergency or lawful regulations promulgated or orders of any department, division or unit of the County of Clinton, State of New York and United States. In no event will TOPCWD be liable to MLWD and its users for any damages resulting from any reduction or discontinuance as aforesaid.

5. Notwithstanding anything to the contrary stated in this Agreement, the Town of Schuyler Falls acting for the MLWD shall have the right at any time to terminate this Agreement as of the last day of the month by (MLWD) giving written notice of such termination to TOPCWD at least one (1) year prior to the date of such termination.

6. Notwithstanding anything to the contrary stated in this Agreement, the TOPCWD shall have the right, at any time, to terminate this Agreement by giving one (1) year written notice of such termination to the Town of Schuyler Falls acting for the MLWD calling for a termination date which is at least one (1) year following the date of notice.

Upon such termination, the Town of Schuyler Falls acting for the MLWD shall (promptly) within 30 days pay TOPCWD the total amount of all billings owed by MLWD to TOPCWD as of such termination date. If such amount includes a period beyond the termination date, the specific billing therefore shall be pro-rated as of such termination date.

Upon the settlement of all such charges, neither party shall have any claim against the other as to all matters covered by this Agreement to the date of such termination, except for corrections of the pro-rating of a previous or termination date billing.

IV QUANTITIES OF WATER

1.  The projected quantity of water service to be included in the Contract is estimated at a rate of 10,000 gpd (on average, based on current data).

2.  TOPCWD agrees that at all times it will attempt to maintain an anticipated fire flow rate at 500 gpm at the meter pit meter device adjacent to the boundary lines of the Town of Plattsburgh and Town of Schuyler Falls on the TOPCWD side. TOPCWD agrees that at all times it will attempt to maintain a minimum static pressure of 60 psi at the meter pit. However, there is no liability on the part of TOPCWD to MLWD or to any of its users for the inability of TOPCWD, for any reason, to maintain the aforementioned flow rate and minimum static pressure.

3.  The Town of Schuyler Falls acting for the MLWD agrees that it shall abide by any water use restrictions issued by the Town of Plattsburgh for the Consolidated Water District.

V CHARGES

SYSTEM MAINTENANCE CHARGES

The Town of Schuyler Falls acting for the MLWD shall make quarter-annual system maintenance payments to TOPCWD on January 1st, April 1st, July 1st and October 1st. Quarter-annual payments shall be one-quarter (1/4) of the system maintenance charge. The system maintenance charge shall be established by the TOPCWD annually during the month of September.

2013 system maintenance charge = $20,000 (to be prorated based upon actual agreement date.)

Quarterly payment ($20,000 X ¼) = $5,000.00

MONTHLY METERED WATER RATE

1. TOPCWD shall invoice the Town of Schuyler Falls acting for the MLWD on a monthly basis for surplus water purchased as recorded through the district master meter.

2.  The monthly metered water rate shall be the same rate as that charged to Town of Plattsburgh users plus 10%, as amended from time to time.

CAPITAL CONTRIBUTION

The Town of Schuyler Falls acting for the MLWD shall pay to the TOPCWD an amount of $7,000 per year (to be prorated for the first year based upon actual agreement date) as a contribution to the capital costs incurred by the TOPCWD to finance the system improvements constructed to extend the TOPCWD system to the point of connection for the MLWD. After the initial three year term of this agreement, the TOPCWD may alter on an annual basis the capital contribution. The change will be based upon the assessed value of the MLWD in relation to the costs paid within the TOPCWD for an equivalent assessed value. The TOPCWD shall notify the MLWD no latter than September 30th of any change to the capital contribution.

SYSTEM MAINTENANCE DUTIES

The following duties shall be performed for the MLWD by the TOPCWD for the system maintenance charge.

A.  Routine Maintenance

Routine maintenance shall consist of the basic administration of the system and includes hydrant flushing, exercising valves, sampling, addressing user questions, meeting with contractors and homeowners which require connection to or modification of their existing connection to the water system, inspection of service connections, defining repairs and improvements that may be required and advising on the affects of regulation modifications.

Routine Maintenance specifically excludes repairs, materials and equipment expenses other than that required to perform the routine maintenance tasks outlined above.

Subsequent year’s Routine Maintenance fee shall be the previous year fee, increased by the percentage increase in the Town of Plattsburgh Water and Sewer Department budget including but not limited to all fringe benefits and pension costs.

B.  Customer Billing

TOPCWD shall read all meters installed in the MLWD on a quarterly basis and provide said readings to the Town of Schuyler Falls acting for the MLWD. TOPCWD shall prepare customer bills for MLWD customers.

C.  Laboratory Costs

TOPCWD shall collect and have analyzed water samples required as a normal course of system maintenance. The laboratory cost shall be paid by the TOPCWD with the exception of any special testing requested by governing agencies specifically due to the MLWD system.

D.  Repairs and Improvements

Repairs and Improvements are specifically excluded from the system maintenance duties. The Town of Plattsburgh, with the approval of the Town of Schuyler Falls, shall make repairs as required including the provision of all labor, equipment and materials at the current rates charged to TOPCWD customers. All work shall be performed on a time and materials basis and be paid by the Town of Schuyler Falls within thirty (30) days of receipt of billing from the Town of Plattsburgh. The Town of Schuyler Falls may opt to have others perform repairs and improvements however these repairs or improvements shall be inspected and approved by the director of the TOPCWD or his/her designee.

In the event of emergencies, the Town of Schuyler Falls Supervisor, and/or his/her designated appointee, shall be authorized to approve work to be performed by the Town of Plattsburgh in the event of an emergency. The Town of Schuyler Falls shall have on file with the TOPCWD an annually updated list of designated appointees. Any work authorized by the supervisor, or a designated appointee, shall be as if approved by the Town Board and all costs associated therewith shall be paid by the Town of Schuyler Falls.

VI MAINTENANCE OF METERS

1. The Town of Schuyler Falls acting for the MLWD shall install a water meter pit with an approved backflow device at a mutually agreeable location. The cost of the meter pit, meter, backflow device and appurtenances will be borne by the Town of Schuyler Falls.

2. After completion of installation, TOPCWD shall, at its sole expense, maintain the water meter device, meter pit and related apparatus used to measure flows to MLWD. Replacement and repair cost will be borne by the Town of Schuyler Falls acting for the MLWD.

3. TOPCWD shall continually provide safe and convenient access to said meter device and meter pit for Town of Schuyler Falls personnel. Said meter will be available to Town of Schuyler Falls personnel for inspection at any reasonable time.