AG 1992 04 06 - Laserfiche WebLink

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4. Water Supplied To Fieldcrest. In consideration of Fieldcrest providing the operational management of the Water Treatment Facility as provided by this Agreement, City agrees that Fieldcrest shall be entitled to draw from the Water Treatment Facility !0 million gallons of treated water per day, at no additional cost, to provide water supplies for Fieldcrest's business operations. Fieldcrest shall pay to City a supplemental amount per thousand gallons of water used over 10 million gallons of water per day equal to ten percent (10%) of Total Operating Costs per thousand gallons. 5. Water Supplied to Fieldcrest In The Event of Termination. In the event that this Agreement is terminated either by mutual agreement of ~ieldcrest and City or as a result of a default by either Fieldcrest or City or for any other reason whatsoever, City agrees that Fieldcrest shall be entitled to a daily water supply up to its average daily draw of water for the year immediately proceeding the date of termination, but not less than 10 million gallons per day, from the date of such termination to a date twenty (20) years from the date of closing under the Purchase Contract at a price equal to the Total Operating Costs (as defined in Paragraph 2.a. above) per thousand gallons drawn up to 10 million gallons drawn per day and Total Operating Costs (as defined in Paragraph 2.a. above) per thousand gallons plus 10% of that amount for each thousand gallons drawn over 10 million gallons per day. Fieldcrest shall also pay to City depreciation reimbursement due as required by Paragraph 3 above. Total Operating Costs shall be calculated monthly, and Fieldcrest shall pay City within thirty (30) days after receipt cf a bill for water used. 6. Allocation Upon Water Shortage. Notwithstanding the foregoing, if because of circumstances beyond the control of City there is not, at any time during the term of this Agreement or after its termination, an adequate supply of raw water to provide Fieldcrest the amount of water required to be provided to Fieldcrest under Paragraphs 4 and 5 above and also to provide City's other customers with their requirements, the amount Fieldcrest has a right to draw shall be reduced by the City by a reasonable and fair amount, taking into consideration the needs of Fieldcrest and all other customers. 7. Sale, Delivery And Billing By City. a. It is understood and agreed by Fieldcrest and City that Fieldcrest, except as set out in Paragraph 2 above and in this Paragraph 7, shall have no further responsibility for the sale, delivery, determination of billable rates, classification of rates, billing or collection of accounts resulting from the sale of water. Fieldcrest shall maintain -5-