115-City of Lake Mary, Water Purchase Contract
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WATER PURCHASE CONTRACT
This Contract for the sale and purchase of water
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entered into this ..:3.J/L- day ~'71?HlLi'.r 1985. by
and between the CITY OF LAKE MARY, FLORIDA, hereinafter
referred to as LAKE MARY, and the CITY OF SANFORD, FLORIDA,
:i hereinafter referred to as SANFORD.
WITNESSETH:
WHEREAS, LAKE MARY AND SANFORD agree it is in their
mutual best interest for LAKE MARY to have an independent
supply of water as rapidly as possible, and
WHEREAS, LAKE MARY has taken preliminary steps for
planning and funding the construction of an independent
water supply source and expects to have it fully operational
on or before December 31, 1985, and
WHEREAS, LAKE MARY is operating a water supply distri-
bution system within the incorporated area of Lake Mary,
Florida, and to accomplish this purpose, LAKE MARY requires
a supply of treated water until its own water supply system
is operational in December, 1986, and
WHEREAS, SANFORD owns and operates a water supply
distribution system with a capacity capable of serving
the customers of SANFORD's system and temporarily serving
the needs of the customers of LAKE MARY, and, in
con-
sideration of the terms, provisions and covenants contained
herein the parties hereto do mutually agree as follows:
1) Subject to the terms and conditions hereinafter
set forth, SANFORD shall continue to sell and
deliver to LAKE MARY, and LAKE MARY shall continue
to purchase and receive from SANFORD, water
service
(hereinafter called service) requested
by LAKE MARY from SANFORD at the premises to
be served hereunder (hereinafter called the
service location.).
The point of delivery will be at the main water
plant on State Road 46-A.
2) This contract shall continue in effect from
February 1, 1985, and thereafter until terminated
on December 31, 1986 or sooner when LAKE MARY
connects to its own water supply system.
3 )
( a )
For and in consideration of the faithful
performance of the stipulations of this
Contract, SANFORD shall be paid by the
appropriate finance officer of LAKE MARY
for service herein contracted for, at
the rates and under the terms and conditions
herein set forth~ provided, that LAKE
MARY shall be liable for the minimum monthly
non-resident service charge
(currently
$65.65 for the first 100,000 gallons and
56~ per 1,000 gallons thereafter) commencing
with the billing period in which service
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is initially furnished thereto and continuing
until this Contract is terminated, except
that the minimum monthly charge specified
in this Contract shall be equitably prorated
for the billing period in which commence-
ment and termination of this Contract
shall become effective.
(b) SANFORD hereby declares that said rates
are not in excess of the lowest rates
now available to any prospective customer
under like conditions of service, and
agrees that during the life of this Contract
LAKE MARY shall continue to be billed
on the lowest available rate for similar
conditions of service.
(c) Payment shall be made by LAKE MARY within
thirty (30) days after receipt of monthly
bill from SANFORD.
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4 )
5 )
(d) All bills for service shall be paid without
penalty or interest, and LAKE MARY shall
be entitled to any discounts customarily
applicable to payment of bills by all
customers of SANFORD.
(e) Invoices for service rendered shall contain
statements of the meter readings at the
beginning of the billing period, meter
constants
and consumption during the
billing period.
(f) LAKE MARY will be solely responsible
to SANFORD for payment of monthly billings.
The CITY OF LAKE MARY shall be able to connect
to its water system up to a maximum of 1,443
accounts and each connection account shall
be defined as the equivalent water account
of one single family resident connection;
physically connected to the Lake Mary water
system.
A single family water account is
one averaging 10,000 gallons of water consumption
per month.
MEASUREMENT OF SERVICE.
(a) All service furnished by SANFORD shall
be measured by suitable metering equipment
of standard manufacture, to be furnished,
installed, maintained and calibrated by
LAKE MARY as its expense.
When more
than a single meter is installed at the
service location, the readings thereof
shall be billed conjunctively.
In the
event any meter fails to register or
registers incorrectly, the service furnished
there-through, the parties shall agree
upon the length of period during which
such meter failed to register or registered
incorrectly, and the quantity of service
delivered there-through during such period
and, upon agreement, and appropriate adjust-
ment based thereon shall be made in LAKE
MARY's bills.
For the purpose of the
preceding sentence, any meter which registers
not more than two (2) percent slow or
fast shall be deemed correct.
(b) SANFORD, so far as possible, shall read
all meters at periodic intervals of approxi-
mately thirty (30) days.
All billings
based on meter readings of less than twenty-
seven (27) days or more than thirty-two
(32) days shall be prorated accordingly.
6) METER TEST.
SANFORD at its expense shall periodically inspect
and test the Master Meter installed at the
point of delivery by LAKE MARY at intervals
not exceeding three (3) years.
At the written
request of LAKE MARY, SANFORD shall make additional
tests of the Master Meter in the presence of
LAKE MARY's representatives.
The cost of
such additional tests shall be borne by LAKE
MARY if the percentage of error is found to
be not more than two (2) percent slow or fast.
No meter shall be placed in service or allowed
to remain in service which has an error in
registration in excess of two percent (2%)
under normal operating conditions.
7) CHANGE IN VOLUME OR CHARACTER.
Notice shall be given every thirty (30) days
by LAKE MARY to SANFORD respecting any new
water connections or material changes proposed
in volume or rate and time of the utility
service required at each location.
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8) CONNECTION FEES.
(a) Effective February 1, 1985, and continuing
for the duration of this Water Purchase
Contract, LAKE MARY shall collect and
remit to SANFORD water impact fees applicable
to residential and non-residential service
as provided from time to time by ordinance.
The amount to be collected for each connection
until December 31, 1986, shall be $557.45.
(b) SANFORD hereby declares that said water
impact fees are not in excess of the lowest
rates now available to any prospective
customer under like conditions of service,
and agrees that during the life of this
Contract LAKE MARY shall continue to be
billed on the lowest available rate for
similar conditions of service.
(c) Payment of said water impact fees shall
be made by LAKE MARY to SANFORD every
thirty (30) days after they are received
by LAKE MARY from its water customers.
(d) SANFORD shall deposit said impact fees
in a separate interest bearing escrow
account to be utilized as follows:
1. In the event LAKE MARY connects to
an independent water supply and disconnects
from the SANFORD water supply system
on or before December 31, 1986, SANFORD
shall return to LAKE MARY the principal
and interest amount of all water impact
fees received into the escrow account.
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2. In the event LAKE MARY does not connect
to an independent water supply or disconnect
from the SANFORD water supply system on
or before December 31, 1986, SANFORD
shall retain for its own use all principal
and interest earned on the escrow account.
It is the intention of the parties that
this provision will serve as a measure
of liquidated damages to SANFORD in the
event LAKE MARY has not connected to
an independent water supply by December 31,
1986.
3. It is contemplated that LAKE MARY will
construct its own water supply system
prior to December 31, 1986, and that
water impact fees deposited in escrow
may be needed to pay construction costs
or to provide debt service for funds
borrowed for construction of said system.
In that event, SANFORD agrees to disburse
funds from the principal balance of the
water impact fees in escrow for materials
and labor used in the construction of
the LAKE MARY water supply system or
for debt service for funds borrowed
by LAKE MARY for construction of said
system, provided LAKE MARY has first
expended all funds in deposit in its
own impact fee account and second has
expended all funds available
from the Farmer's Home Administration
or such other lender that is selected
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by LAKE MARY to finance the construction
of the project, and third, that its
engineer certify in writing to SANFORD
that construction of the project is
at least fifty percent (50%) complete.
9) CONTINUED INTERCONNECT OF SYSTEMS.
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The parties will enter into an agreement when
LAKE MARY connects to an independent water
supply system so that the parties will be able
to maintain an interconnect between the two
systems to furnish standby water capacity to
each other during emergencies or natural disasters
or on an as needed and as available basis.
10) CONTINUITY OF SERVICE AND CONSUMPTION.
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(a) SANFORD shall use reasonable diligence
to provide a regular and uninterrupted
supply of service at the service location,
but shall not be liable for damages, breach
of contract or otherwise to LAKE MARY
for failure, suspension, diminution or
other variations of service occasioned
by or in consequence of any cause beyond
the control of SANFORD, including but
not limited to acts of God or of the public
enemy, fires, floods, earthquakes, or
other catastrophies, strikes or failure
or breakdown of transmission or other
facilities; provided, that when any such
failure, suspension, diminution, or variation
of service shall aggregate more than ten
(10) hours during any billing period hereunder,
an equitable adjustment shall be made
in the monthly rates specified in this
Contract (including the minimum monthly
charge).
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(b) In the event LAKE MARY is unable to operate
the service location in whole or in part
for any cause beyond its control, including
but not limited to acts of God or of the
public enemy, fires, floods, earthquakes
or other catastrophies, or strikes, an
equitable adjustment shall be made in
the monthly rates specified in the Contract
(including the minimum monthly charge)
if the period during which LAKE MARY is
unable to operate such service location
in whole or in part shall exceed fifteen
(15) days during any billing period hereunder.
11) For all service furnished under this Contract
to the service location LAKE MARY shall pay
SANFORD at the rate schedule for non-resident
service (currently $65.65 for the first 100,000
gallons and 56~ per 1,000 gallons thereafter)
12) For purposes of charges under Paragraph 10,
any demands due to faulty operation of, or
excessive or fluctuating pressure on, SANFORD's
system shall not be included as part of LAKE
MARY's demand.
13) CHANGE OF RATES.
a) In the event SANFORD, during the term
of this Contract, shall make effective
any new rate schedule or amended rate
schedule applicable to the class of service
furnished LAKE MARY, SANFORD shall forward
to the contracting officer or officers
of LAKE MARY a copy of such rate schedule
or amended rate schedule within sixty
(60) days before the effective date thereof,
and shall substitute such rate schedule
or amended rate schedule commencing with
the next billing period after the effective
date.
Anything herein to the contrary
notwithstanding.
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(b) In the event of a permanent change in
the class of service furnished LAKE MARY
at the service location, service shall,
effective sixty (60) days after written
request is made by either party or at
such other time as may be agreed upon,
thereafter be furnished to such service
location at the lowest available rate
schedule of SANFORD which is applicable
to the class of service furnished following
such permanent change.
14) ASSIGNMENT.
No rights of claims under this Contract shall
be assigned.
15) DISPUTES.
Except as otherwise provided in the Contract,
any dispute concerning a question of fact arising
under this Contract shall first be resolved
by agreement of parties and if it is not disposed
of by agreement, it shall be decided by an
arbitration panel consisting of three (3) members,
one chosen by SANFORD, one chosen by LAKE MARY,
and one chosen by the two arbitrators.
Decisions
made by the arbitration panel shall be final.
16) CONFLICTS.
To the extent of any inconsistency between
the provisions of this Contract, and any schedule,
rider or exhibit incorporated in this Contract
by references or otherwise, or any of SANFORD's
or LAKE MARY's rules and regulations, the pro-
visions of this Contract shall control.
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IN WITNESS WHEREOF, the parties hereto have executed
this Contract as of the day and year first above written.
ATTEST:
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CITY CLERK
ATTEST:
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CITY CLERK . J
Cl? OF LAK~ M~RY' FLORIDA
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MAYOR
CITY OF SANFORD, FLORIDA
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MAYOR
APPROVED as to form and content and authorized by appropriate
Articles of Incorporation and Corporate Resolution.
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APPROVED as to form and content and the CITY OF SANFORD,
FLORIDA, is authorized pursuant to lawful Charter authorized
to enter said Water Purchase Contract.
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COUNSEL FOR SANFORD, FLORIDA
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WATER PURCHASE CONTRACT
This Contract for th7 sale and purchase of water entered
into this /5 day of ~~ , A.D., 197f by and between
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the CITY OF LAKE MARY, FLORIDA, a Florida municipal corporation,
hereinafter referred to as LAKE MARY, and the CITY OF SANFORD,
FLORIDA, hereinafter referred to as SANFORD.
WIT N E SSE T H
WHEREAS, Lake Mary is a municipal corporation, organized
and established under the laws of the State of Florida, in the
year 1973, and has recently purchased and is operating a water
supply distribution system serving water users within the in cor-
porated area of Lake Mary, Florida, and to accomplish this purpose
Lake Mary will require a supply of treated water; and
WHEREAS, Sanford owns and operates a water supply dis-
tribution system with a capacity currently capable of serving the
present customers of Sanford's system and the aforementioned
number of water users to be served by Lake Mary as shown in the
plans of the system now un file in the office of Lake Mary, and
in consideration of the terms, provisions and covenants contained
herein the parties hereto do mutually agree as follows:
1) Subject to the terms and conditions hereinafter set
forth, Sanford shall sell and deliver to Lake Mary, and Lake Mary
shall purchase and receive from Sanford, water service (Hereinafte
called service) requested by Lake Mary from Sanford at the premise
to be served hereunder (hereinafter called the service location),
all in accordance with water service specifications attached here-
to and made a part he-reof. The point of delivery' will be at the
main water plant on State Road 46A.
2) This contract shall continue in effect from the com-
mencement of service and thereafter until terminated at the option
of Lake Mary by the giving of not less than sixty (60) days ad-
vance written notice of the effective date of termination. The
City of Sanford reserves the right to terminate this contract in
the event the City of Lake Mary fails or is prevented from carryin
out the terms under this contract.
(b) In the event of a permanent change in the class
of service furnished Lake Mary at the service location, service
shall, effective sixty (60) days after written request is made
by either party or at such other time as may be agreed upon,
thereafter be furnished to such service location at the lowest
available rate schedule of Sanford which is applicable to the
class of service furnished following such permanent change.
11) Assignment of Claims. No claim under this contract
shall be assigned.
12) Disputes. Except as otherwise provided in this
contract, any dispute concerning a question of fact arising under
this contract which is not disposed of by agreement shall be
decided by the City Commission of the City of Sanford, Florida,
whose decision shall be final.
13) Pledge. That this contract is hereby pledged to the
united States of America, acting through the Farmers Home
Administration as part of the security for a loan from the
United States of America.
14) Conflicts. To the extent of any inconsistency
between the provisions of this contract, and any schedule, rider
or exhibit incorporated in this contract by references or other-
wise, or any of Sanford's or Lake Mary's rules and regulations,
the provisions of this contract shall control.
IN WITNESS WHEREOF, the parties hereto have executed
this contract as of the day and year first above written.
CITY OF LAKE MARY, FLORIDA
ATTEST: n
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CITY
OF SA~F~D, FLORIDA
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Mayor
ATTEST:
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APPROVED as to form and content and authorized by
appropriate Articles of
and Corporate Resolution.
IRE
RY, FLORIDA
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APPROVED as to form and content and the CITY OF SANFORD,
FLORIDA, is authorized pursuant to lawful Charter authority to
enter said Water Purchase Contract.
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C. VERNON !>iIZE, JR. (,J
Counsel for the CITY dF S NFORD,
FLORIDA