WATER DISTRICT AGREEMENT
This agreement made this _____ day of _____________, A.D., 2009, by and between the City of Owosso, a municipal corporation organized under the laws of the State of Michigan, party of the first part hereinafter called "City"; and Owosso Charter Township, hereinafter called "Township", a Public Body Corporate organized under the enabling laws of the State of Michigan; party of the second part.
Witnesseth:
Whereas, City maintains and operates a water supply system, and is authorized by law to make the facilities and services of said water system available to other legal entities; and
Whereas, Township has the authority to contract with City for the purpose of securing extensions of water mains throughout adjacent portions of the Township and to provide water service by the continued operation of such mains by City; and
Whereas, it is necessary for the public health, welfare, and safety and desirable to provide for water supply for portions of Township; and
Whereas, City and Township are authorized by P.A. 35 of 1951, as amended, and P.A. 34 of 1971, as amended, to enter into contracts for the provision of municipal services, including water supply and transmission;
Now, therefore, in consideration of the premises and the mutual undertakings of the parties hereto, it is agreed:
- City agrees to sell and deliver water to customers in the Township (except the Township land Zoned A-1) subject to conditions stated herein.
- Township agrees, that in the Township areas that do not have city water, it will
construct, at no capital expense to City, the water distribution system and appurtenances including storage as needed within said districts. Ownership of the water distribution system, constructed by Township at no capital expense to City, shall be owned by Township. - The provision of water service to customers on the boundaries of the City and
Township when such service does not require the extension of water mains shall be permitted as of right; but notice must be given to both City and Township. - City, to the best of its ability, shall deliver water to customers within the
Township service area at such rates of flow as may be required to meet ordinary needs, and as may be required to meet peak hour and fire flow demands to the same extent that peak hour and fire flow demands are met within the boundaries of the City and as may be provided through the districts’ water distribution system. - After the distribution system, or portion thereof, has been installed and accepted
by Township and City, City will operate said system, furnishing water to the water customer in the same manner used in furnishing water to the water customers within the city boundaries except as hereinafter provided. All water furnished shall be measured by meters located on the premises of each customer in the same manner as is required by the Code, Ordinances and Rules and Regulations of City for measurement of water used by water customers in the city. Water meters shall be furnished, maintained and replaced by City, and title to the water meters shall remain in the Township if installed after this Agreement is signed. The initial meter cost shall be included in the customer connection charge. - City agrees as part of its operation to keep the water distribution system in good repair, including maintenance of fire hydrants, valves, mains, other appurtenances and the repair of leaks and items of similar nature usually associated with the routine maintenance and operation of a public water supply system; except, that Township shall reimburse City for the costs of all changes in or damages to the distribution system and service connections as may be incurred by highway or street redevelopment or grading programs, sewer constructions, or other public works or public utility activities other than damage caused by the activities of City or its contractors. The Township shall be deemed to own that portion of the water distribution system within the Township, that preexisted this Agreement, when the Township substantially repairs or replaces such system.
- Township agrees to adopt ordinances conforming to City’s water utility
ordinances to enforce utility operation in compliance with City’s Water Ordinances, Water Bond Ordinances and sound public health and engineering practice.
- Township further agrees that City shall have full access to all of its streets, rights-
of-way and utility easements within said water districts for the purposes of repairs and maintenance to the water system. City shall give reasonable notice to Township for any projects in which streets will be closed for repairs to water system, and notice to the Township when water is provided to any Township legal entity.
9. Township may extend or expand the water distribution system as provided for in paragraph 11 at the expense of Township or through applicable special assessment procedures established by law. All water main sizes and arrangements, valve locations, and reserve storage shall be established by mutual consent of the parties, subject however, to a master plan, meeting good engineering precepts for equalization of supply and pressure throughout the total distribution system.
Should the City have engineering or water capacity issues as a result of the Township expansion the parties will work in good faith to solve the same.
10. All specifications, construction methods and installations of water mains, taps, service connectors, fittings, meters, and other appurtenances of the water distribution system in the districts shall comply with all City standards, specifications, and rules and regulations, from time to time in effect for the distribution system in the city; and all rules and regulations of City pertaining to the control of, or restriction of, the use of water taken from City’s water system shall apply in the districts; and all rules of the Michigan State Plumbing Code and Michigan Department of Environmental Quality pertaining to water systems shall apply in the district.
11. Township agrees that no extensions or additions of water mains shall be made and no pumping, regulating, storage, or other facilities shall be installed until clear and complete plans and specifications for such work shall have been submitted to and approved by City. Such approval shall not be unreasonably withheld but may be withheld if such extensions or additions might render the City unable to meet its obligations under the provisions of paragraph 4 above. When it appears that approval might be withheld, City agrees to notify Township and to meet and confer with Township officials to discuss the reasons for such action and to consider potential remedies.
12. It is understood and agreed that City shall have the right through its City Manager, or his appointed agent, to inspect all water pipes, taps, service connections, fittings, meters, and appurtenances, during installation, installed, or intended for use in the system, during the continuance of this contract, for the purpose of insuring a uniform standard of construction for all areas served by City’s water supply system, and to avoid any damage to City’s system as a whole, arising from inferior material or workmanship in the component parts.
13. Township shall carefully guard against all forms of contamination. If at any time contamination should occur, the area or areas affected shall immediately be shut off and isolated and remain so until such conditions shall have been abated and the water declared again safe and fit for human consumption by the properly constituted governmental health agencies having jurisdiction of the areas affected. Further, it is provided that if it appears that an area within the supply system is contaminated and Township fails to timely act after notice from City, under Township ordinance, to isolate said contamination, then City shall have the right to shut off water service or isolate the same as City shall deem necessary for the protection of the general health, safety, and welfare of the public.
14. City expressly reserves the right to discontinue temporarily the supply of water to any of the pipes laid or to be laid by any district and to discontinue temporarily the entire water supply to the district whenever in the judgment of City it is necessary to do so to insure the public health, safety and welfare and/or to maintain or repair the water system. No claims for damages for such discontinuance shall be made by Township against City, its agents, servants or employees.
15. This Agreement shall be in full force and effect for thirty (30) years from the date of the agreement and shall automatically renew for two 30-period extensions unless one of the following occurs:
- By mutual written agreement of the parties.
- If after a passage of time, the township shall establish its own independent water system it shall give one year’s prior written notice thereof to the City; and then only with the consent and approval of the Michigan Department of Environmental Quality, provided such approval or consent is then required.
- At the option of either party for any breach of this Agreement continuing after sixty (60) days written notice to the breaching party demanding conformance.
- Upon the implementation of provisions of an agreement between City and Township pursuant to which City would provide water to Township on a wholesale basis.
Prior to the termination of this Agreement, City and Township shall meet to discuss the manner in which water service to existing customers in Township is to be maintained.
16. It is hereby agreed that no failure or delay in performance shall be deemed to be a
breach hereof when such failure or delay is occasioned by or due to any Act of God, Strike, Lockout, War, Riot, Epidemic, Explosion, Sabotage, Breakage, or Accident to Machinery or Lines or Pipe, the Binding Order of any Court or Governmental Authority, or any other cause whether of the kind herein enumerated or otherwise not within the control of the party against whom a breach is alleged, provided that no cause or contingency shall relieve the Township residents of their obligation to make payment for services rendered.
17. Rates
The rates for water supplied by City shall be such as City may establish from time to time, it being mutually understood that such rates shall always be reasonable in relation to costs incurred by City for the supply of water. Monthly water charges by City directly to customers in Township shall be two (2) times the rates charged directly to customers in City.
Fire hydrant service or rental charges shall continue as previously established wherein the City invoices the Township on an annual basis for each publicly owned and maintained fire hydrant located in the Township. The current charge is $108 per hydrant per year. The charge is intended to cover routine hydrant maintenance costs, water used for hydrant flushing and fire fighting or training, and a portion of the overall system costs attributed to meeting fire flow demands.
Changes to the fire hydrant rental charge shall be in direct proportion to changes in the City demand charge for fire sprinkler service, unless such charges are determined by a new cost of service rate study. A copy of the most recent hydrant list is attached. The charge has not applied to hydrants on borderline streets or to hydrants intended for use at City facilities in the Township, such as at the Mid-County Wastewater Plant or the West Side elevated tank.
The City and Township agree to work together to assure there is no unauthorized use of water from hydrants in the Township. If Township officials witness any questionable or unauthorized use of a hydrant in the Township, they are asked to immediately notify the City. In the event of use for fire fighting or training, the Water Plant Operator is to be notified either by direct phone (725-0560) or a call to have central dispatch notify the plant operator.
Such notification helps the plant operator understand the cause of the additional water use and to properly respond to increased water demand for fire fighting.
18. Owosso Charter Township Water District Fund
City shall quarterly transfer to Township, for deposit into a separate Township account entitled "Owosso Charter Township Water District Fund", twenty-five percent (25%) of the revenue from the metered sale of water in established water service districts of Township.
This fund shall be used solely for making replacements and improvements to the distribution system in the Township districts, including extensions and provision of system storage. An annual report detailing expenditures from this fund shall be made by Township to City upon request of City. Records of water sales in Township shall be made available by City upon request of Township.
19. Bad Debts - Uncollected Charges
For any bad debt expense experienced by City in the sale of water to customers in Township, the City may employ customary collection methods including the establishment of liens for the collection of unpaid utilities. City will cooperate with Township in establishing and enforcing liens for collection of bad debts.
Water service charges shall be collected by City. The rates and charges as established herein shall constitute a lien on the properties located in the Township receiving water services.
20. Connection Charges. City and Township may each, from time to time, establish water service connection charges. Such water service connection charges shall be collected by City upon applications for connection to the water system. Township connection charges billed and collected by City shall be transferred on a quarterly basis to Township. At the time of each transfer, City shall deliver to Township a report detailing the Township connection charge receipts, showing for each property address to which a water service connection has been made the amount of the Township connection charge collected.
21. Memorandum of Understanding. That attached hereto is a Memorandum of
Understanding, that is made a part hereof.
22. Amendments. This agreement may be amended from time to time by mutual
consent of the parties. Such amendments may only be made in writing.
23. Dispute Resolution. If a dispute should arise regarding the meaning or application
of the terms of this agreement, or if the parties are unable to reach agreement when the provisions of this agreement require it, City and Township agree to submit such matters to mediation by a Mediator that is approved by the Shiawassee County Circuit Court. If mediation fails, either party may seek its appropriate remedies in Shiawassee County Circuit Court.
24. Assignment. This agreement shall inure to the benefit of and be binding upon the
respective parties hereto, their successors and assigns.
25. Notice. Whenever this agreement requires the provision of written notice, that
notice shall be deemed to have been given when a letter is sent via first class mail addressed to the following:
A. For Township:
To Both the Owosso Charter Township Supervisor
and Owosso Charter Township Clerk
2998 W. M-21
Owosso, MI 48867
B. For City:
Owosso City Manager
301 W. Main Street
Owosso, MI 48867
26. Effective Date. This agreement is effective upon signing, however Owosso
Charter Township and the City of Owosso shall then form an operating connection between their respective existing water supplies, and Owosso Charter Township shall comply with DEQ rules and regulations for safely disconnecting their current wells and pumping system. The City and Township shall share the costs for connecting the two systems together. The Township alone will be responsible for disconnecting their current water supply.
In witness whereof, the parties have hereunto set their hands this ______ day of __________, 2009.
In the presence of : CITY OF OWOSSO
__________________________________ By:_________________________________
Michael Bruff, Mayor
__________________________________ And________________________________
Amy K. Kohagen, City Clerk
CHARTER TOWNSHIP OF OWOSSO
___________________________________ By:_________________________________
Danny Miller, Supervisor
____________________________________ And:________________________________
Judy Gute, Clerk
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