BC 1988 11 21 - Laserfiche WebLink

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540 WHEREAS, CONCORD and CABARRUS desire to cooperate in said undertaking pursuant to the terms of this Agreement and an agreement between the parties relating to the development of water treatment facilities and the sale of treated water therefrom executed simultaneously herewith (the "Treated Water Agreement"); NOW, THEREFORE, in consideration of the premises herein, the Treated Water Agreement and agreements hereinafter made, CONCORD and CABARRUS agree as follows: 1. Purpose. The purpose of this Agreement is to establish a basis for cooperation between CONCORD and CABARRUS in the construction, operation and maintenance of the Reservoir upon land now owned by CONCORD and/or CABARRUS in order to provide and supply an additional source of raw water for the residents of Cabarrus County. 2. Duration of Agreement. The duration of this Agreement is perpetual. 3. Project Development and Financing. Upon such terms and under such conditions as hereinafter set forth, CABARRUS shall: (a) pursue and complete the planning, designing, engineering, development and construction of the Reservoir; (b) acquire all land and appurtenances and finance and pay for the Reservoir in its entirety; and (c) own and operate the Reservoir. 4. Transfer of Real Property and Release of Design and Related Documents. For and in consideration of the mutual covenants contained herein and in the Treated Water Agreement executed simultaneously herewith, on or before January 1, 1989, CONCORD shall transfer and release to CABARRUS the Existing Pump Station, the Concord Property, and the Concord Plans and Documents. 5. Raw Water Rights and Right of First Refusal. Upon the completion of construction of the Reservoir, CABARRUS grants to CONCORD the right and authority to draw and receive raw water therefrom to the extent of the availability thereof; PROVIDED THAT: (a) Subject only to Paragraph (b) hereinafter, CABARRUS hereby reserves and grants to CONCORD the absolute right of first refusal to nine million (9,000,000) gallons per day of the safe daily yield of raw water from the Reservoir (the "Floor Amount") at the rate set forth hereinafter, but such amount shall not be accumulated; (b) NOTWITHSTANDING THE FOREGOING, in the event of a water shortage arising from drought, mechanical or structural failure or similar objective occurrence, CABARRUS may reduce the Floor Amount due CONCORD to an amount equal to a proportionate share of the safe daily yield of raw water from the Reservoir whereby CONCORD's average net daily consumption of raw water from the Reservoir over the next preceding twelve (12) months is divided by the total average daily consumption of all users of raw water from the Reservoir, and the quotient thereof is multiplied by the Reservoir's safe daily yield, but such amount shall not be accumulated. 6. Raw Water Rates. For any and all raw water drawn by CONCORD from the Reservoir, CABARRUS shall charge CONCORD no more than the lowest raw water rate which it charges to any of its customers therefrom (the "Raw Water Charge"); PROVIDED THAT the Raw Water Charge to CONCORD for the Floor Amount shall not exceed the actual operation and maintenance expense of the Reservoir (the "AME") prorated according to CONCORD's actual proportional usage. The AME shall consist only of expense for the operation and maintenance of the Reservoir, including, but not limited to, personnel, repairs and related expense, but specifically shall exclude any and all expense for the capital cost of the Reservoir, or any other portion of CABARRUS' water or sewer system, whether direct or indirect, amortized debt therefor, or otherwise computed. 7. Protection of the Existing Pump Station During Construction. During construction of the Reservoir, CONCORD shall continue to operate the Existing