Title
Vote to Approve Sanford Water Contract and authorize the county manager and attorney to make minor changes to the agreements before they are finalized.
Abstract
WHEREAS: The City of Sanford operates a water system, and is willing to sell to the County water upon the terms and conditions hereafter set forth: and
WHEREAS, County is willing to purchase a minimum amount of water per month and desires to purchase up to an average monthly volume of one and one half million (1,500,000) gallons per day (1.5 mgd) of water from the City, upon the terms and conditions as hereinafter set forth:
Provision of water. Beginning January 1, 2018, City agrees to sell to County under this Contract potable water, meeting the applicable purity standards of the North Carolina Division of Health, at the existing connection point between City and County lines, also known as the "delivery point" and the "point of interconnection", located at the intersection of Deep River and US Hwy 15-501, subject to any reductions or failures of pressure or supply due to main line breaks, power failures, floods, fire and the use of water to fight fire, earthquakes and other causes beyond the City's control. County may sell the water to any customer located in Chatham County.
1. Term. The initial term of this Contract shall continue in full force and effect for a term of seven (7) years from the effective date, and shall automatically renew for additional five (5) year terms, unless one party provides the other party written notice of termination at least 365 days before the end of the then current term.
2. Location. City shall provide water via a supply line at a connection point located at the intersection of Deep River and US Hwy 15-501 through the existing line currently providing water to County.
3. Rate. County shall pay the City for the water it purchases under this Contract at a rate calculated as the City of Sanford wholesale rate - (Utility Basis Model) as developed and up...
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