1990-037-RES WHEREAS, the City Council of the City of Paris Resolution No. 88-074 authorize the offering of water to
RESOLUTION NO. 90~037
WHEREAS, the City Council of the City of Paris did in
Resolution No. 88-074 authorize the offering of water service
to Marvin-Jennings-Clardy Water Corporation; and,
WHEREAS, such offer in the form of Exhibit A to said
Resolution was duly transmitted; and,
WHEREAS, Marvin-Jennings-Clardy Water Corporation made
an oral counter offer which has been incorporated into
Exhibit A attached hereto; and,
WHEREAS, it is deemed to be in the best interest of the
City of Paris that such counter offer and Exhibit A be in all
things approved; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS
that extension of water service to Marvin-Jennings-Clardy
Wa ter Corpor a t ion upon the terms and cond i t ions and in the
form of the Water Service Contract attached hereto as Exhibit
A be approved; and,
BE IT FURTHER RESOLVED; that the Mayor of the Ci ty of
Paris, Eric S. Clifford, be, and he is hereby authorized and
directed on behalf of the City of Paris to execute the Water
Service Contract attached hereto as Exhibit A.
1990.
ATTEST:
APPROVED AS TO FORM:
~<
T. K. Hayn
WATER SERVICE CONTRACT
! .
, " .'. '
STATE OF TEXAS
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KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR
That this Agreement, made and entered into this 11th day of
July, 1989, and executed in quintuple originals, each executed
copy constituting an original, by and between the City of Paris,
a municipal corporation of Lamar County, Texas, hereinafter
referred to as CITY and Marvin-Jennings-Clardy Water Corporation,
a Texas corporation, whose mailing address is P.O. Box 644,
Paris, Texas 75461, hereinafter referred to as MJC.
WITNESSETH:
1.
Service to be Furnished.
1.1 The CITY agrees to furnish and MJC agrees to purchase
and take a supply of potable water for resale in its area as
defined by its certificate of convenience and necessity in
accordance with the terms and conditions hereof. Said supply of
water shall be taken through a service to be constructed near the
intersection of FM 905 (41st S.E. Street) and FM 1507 (Jefferson
Road) at the Northeast corner of said intersection adjacent to
the East right-of-way line of FM 905. The meter vault and loop
to be constructed around two 2 inch meters is to be constructed
outside of the State of Texas right-of-way for FM 905 upon an
easement to be procured at MJC' s expense. The service to be
constructed shall be at MJC's expense and shall consist of two 2
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..
EXHIBIT A
inch meters with 4 valves to be constructed inside the meter
vault with MJC's existing valve being outside the ~ter vault to
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the South and CITY's existing valve being outside'the 'vault to
the North. CITY's 8 inch line will be reduced to a 6 inch line
just prior to entering the meter vault and will be attached to
MJC's existing 6 inch line outside of the meter vault. Inside
the vault will be a 6 inch line loop. The CITY's main reduced to
6 inches will be attached to a "y" immediately inside the meter
box. Each leg of the "y" will contain a 6 inch isolation valve,
a back flow preventer, a 2 inch meter, and a 6 inch isolation
valve, and each leg will then be attached to a "y" which will be
attached to the 6 inch service line and exit the meter valve.
Immediately outside the meter vault will be an air release valve,
all of which appear on Exhibit A attached hereto, all of which
will be at an estimated cost of $10,000.00. The construction of
the service herein described shall be supervised by and in
accordance wi th CITY spec if ica t ions, and shall be owned,
controlled and maintained by CITY from the downstream side of the
meter vault upstream to CITY's existing system. In the event of
replacement of the meter, it will be so replaced without
amendment to this Agreement by giving notice of the name and
number of the new meter as herein provided.
1.2. The potable water furnished shall be used for supplying
residential and commercial customers of MJC. MJC shall not have
the right to furnish industrial customers with water.
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II.
Quantities to be Furnished
.r':.r' .
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2.1. The average daily supply of water furnished shall meet
all reasonable requirements of MJC. The daily consumption, at
this time, is in excess of 50,000 gallons with a monthly
consumpt ion in excess of 1. 5 mi 11 ion gallons, wi th the r igh t,
under this contract, to take up to 2.5 million gallons monthly.
The water delivered to MJC shall be at a minimum pressure of
fifty (50) pounds per square inch.
MJC will advise the CITY of any planned changes that would
significantly affect the .amount of water used by MJC for any
extended period of time. MJC will advise the CITY of any plant
failure that will, on an emergency basis, require a significant
increase in the flow of water to MJC.
III.
Regulations
3.1. MJC may not permit any water furnished hereunder to be
used to supply any industrial customer without specific approval
of the City Council of the CITY. MJC may provide emergency
service to any other water sys tem; however, CITY should
immediately be notified of such emergency service being provided.
IV.
Rights
4.1. CITY reserves the right to inspect, test, repair and
replace the water meter as required. Such replacement or repair
shall be paid one-half by CITY.
4.2 In the event MJC desires to change it's meter size, the
cost of such meter and installation thereof will be paid by MJC.
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4.3. The CITY and MJC each reserve the right, either in law
or in equity, by suits, mandamus or other proceedi~~~!.~Q enforce
or compel performance of any or all covenants herein contained.
4.4. The CITY has the right to connect all Jefferson Heights
customers to CITY's water system.
4.5. In the event of annexation by CITY of an area within
its extr aterr i tor ial j ur i sd ic t ion be ing served by MJC, CITY may
continue to permit residences in such area to be served by MJC or
may, at CITY's expense, extend the CITY's system into such area
and require residents who are served by CITY wastewater system to
connect to CITY's water system.
V.
Water Quality
5.1. The CITY shall supply MJC with water of quality equal
to or exceeding the State of Texas water quality requirements for
water supplied for public use.
5.2. The CITY shall supply, upon request, a comprehensive
chemical analysis report of the water supplied to MJC.
5.3. The CITY bears no degree of responsibility for the
water quality at any point beyond the meter described in Article
I. MJC bears the responsibility for maintaining the water
quality at any point beyond the meter vault and within MJC' s
distribution system.
5.4. MJC shall notify and keep the CITY informed of persons
responsible for the integrity of MJC's distribution system.
5.5. Each of the parties shall immediately notify the other
party's City Manager or MJC's President, or such President's
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designee, as the case may be, of any emergency or condition which
may affect the quality or quantity of water in .~r.t~e.~ party's
system.
S .6. The CITY reserves the r igh t to make inspec t ions of
those facilities which may affect the quality of the water
supplied to MJC and perform required tests.
VI.
Equipment and Operation
6.1. MJC shall provide and maintain all lines and valves on
MJC's side of the water meter vault commencing at the discharge
end of "y 2" described in Article I, which meter vault marks the
limit of CITY's responsibility for maintenance. MJC shall
maintain at all times, its valve located approximately 100 feet
downstream from the meter vault, in working order, which valve
can be used for protecting the CITY's system from contamination
in the event of MJC' s sys tem becoming con tamina ted, or in the
event the integrity of MJC's system is violated. MJC's valve may
be used by CITY to protect MJC's system or to facilitate repair
of CITY's system.
6.2. The CITY I S represen ta t i ve wi 11 regular ly inspect the
meter measuring the supply of water furnished and will report
when the same is known or suspected to be registering
incorrectly. The meter shall be repaired by CITY. In the event
the meter must be replaced, CITY and MJC will agree upon a
replacement meter and the method of replacement. The cost of
maintenance or repair will be distributed in accordance with
Paragraph 4.1.
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6.3. When it has been determined tha t the wa ter meter has
, .
" t.
registered incorrectly, an estimate of the amo~ri~"of water
furnished through the faulty meters shall be prepared by CITY's
Director of Finance for the purpose of billing MJC. The estimate
shall be based upon the average of correct readings for the same
or equivalent months in the preceding year or such other method
which would most accurately reflect the actual consumption for
the period in which the meter failure occurred as can be mutually
agreed upon by the City Manager and MJC's President or designated
representative of the respective parties.
VII.
Rates
7.1. Charges for water furnished to MJC throughout the term
of this contract shall be at the rate of $1.65 per 1000 gallons.
The rate established herein shall be increased or decreased
annually, in October of each year, in the percentage amount of
increase or decrease in the Consumer Price Index for All Urban
Consumers, (CPI-U United States City Average (1982-84=100.0)
above or below the rate for January, 1990, which shall be deemed
to equal 127.4 as appropriate.
7.2 It is agreed that the rate established in paragraph 7.1
above is not based upon cost of service but is agreed to be fair
and equitable to both parties. In the event MJC should ever
desire a cost of service based rate including a return on
investment to CITY, CITY would procure the same at MJC's cost and
would have the right to discontinue service in the event the cost
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of service rate was less than the rate established herein as
adjusted by cost of living increases or decreases...'.!'; tt
. . .
7.3 There shall be no charge for water until MJC declares
that it is ready to receive water by requesting that CITY begin
to provide water service.
VIII.
Payment of Charges
8.1. User Charges under Article VIII of this Agreement shall
be billed by the CITY on a monthly basis with such billing being
rendered on or about the same day each month. All such charges
shall be due and payable on the tenth day following the billing
date and shall become delinquent after the expiration of
twenty-one (21) days following the billing date. In the event
MJC shall fail to make any payment required by this Agreement
within twenty~one (21) days following the billing date, the CITY
may suspend water service authorized by this Agreement after
providing MJC five (5) working days written notice of its
intention to suspend service. I t is agreed tha t this section
shall supersede Sections 31-25 and 31-26 of the Code of
Ordinances of the City of Paris, to the extent that they concern
water service, as well as any other Code of Ordinance provision
with which it may conflict.
IX.
Legal
9.1. It is agreed that in the event and to the extent that
fire, explosion, accident, war, act of God or the public enemy or
any natural disaster prevents the performance of either party
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hereto, such party shall be relieved of the consequences thereof,
and there shall be no liability for payment on the.p~rt. ~f MJC or
".' .' .
for fa i 1 u r e to del i v e r pot a b 1 e wa t e r 0 nth e par t 0 f the CITY,
notwithstanding any other provision of this Agreement, so long as
and to the extent that performance is prevented by such cause;
provided, however, that the parties shall use all due diligence
in their efforts to resume performance at the earliest practical
time.
9.2. This Agreement shall be in force and effect through
September 30, 2000.
9.3. No officer, official or agent of the CITY has the power
to amend, modify or alter this agreement or waive any of its
conditions or to bind the CITY by making any promise or
representation not contained herein.
9.4. This Agreement, except by operation of law, shall not
be assigned or transferred by either party, without the prior
written consent of the other party.
9.5. The CITY will not be responsible in damages for any
interruption or failure to supply water and shall be saved and
held harmless from all damage of any kind, nature and description
which may arise as a result of making this agreement and
furnishing water hereunder, except where the CITY has the ability
to supply the water and refuses so to do.
9.6. Any written notice required or permitted under the
terms of this Agreement shall be given and be deemed to have been
du ly served if either (1) de 1 i vered in per son, or (2) depos i ted
certified mail, return receipt requested, postage prepaid in the
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United States mail, addressed to the designated representative of
the respec t i ve par ties wh ich are des igna ted as fol~~~~.:...
MJC
CITY
President
Marvin-Jennings-Clardy
Water Corporation
P. O. Box 644
Paris, TX 75461
City Manager
City of Paris
P. O. Box 9037
Paris, TX 75461-9037
With a copy to:
Secretary
Marvin-Jennings-Clardy
Water Corporation
P. O. Box 644
Paris, TX 75461
With a copy to:
City Clerk
City of Paris
P. O. Box 9037
Paris, TX 75461-9037
9.7. If any term or provis ion of this Agreement shall be
declared unconstitutional or void by any court of competent
jurisdiction, the constitutionality and validity of the remainder
of said Agreement shall not be affected thereby, and to this end
the terms and provis ions of said Agreement are declared to be
severable.
9.8. Nothing contained in this Agreement shall be deemed or
construed to create the relationship of principal and agent,
partnership, joint venture, landlord and tenant, or any
relationship or association whatsoever between CITY and MJC,
other than as expressly set forth herein.
9.9. This Agreement sets forth the entire understanding
be tween the par ties, and any other under stand ings or agreements
shall be cancelled and superseded by this Agreement upon the date
of execution hereof. None of the terms of this Agreement shall
be waived, discharged, altered or modified in any respect, except
by an Agreement in writing signed by both parties and
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specifically referring to this Agreement. The captions in this
Agreement are included for convenience only and.,.~is.~.a~l not be
taken into consideration in any construction or interpretation of
this Agreement or any of its provisions. This Agreement shall be
governed by, construed and enforced in accordance with the laws
of the State of Texas. The provisions of this Agreement shall
apply to, bind and inure to the benefit of the CITY and MJC, and
their respective successors, legal representatives and permitted
assigns, if any.
x.
City's Authority to Contract
10.1 (a) The parties recognize and agree that Section 31-2
of the Code of Ordinances of the City of Paris requires that
consumers or purchasers desiring water at minimum delivery
pressure, particular flow rate, volume in excess of 1.5 million
cubic feet per month, or which require construction of oversized
additions to the' CITY's distribution system, be delivered water
pursuant to a written contract upon such terms, conditions and at
such rate as may be fixed by the City Counc i 1 of the Ci ty of
Paris.
(b) This Agreement is such a written agreement.
CITY OF PARIS
Eric S. Clirford, Mayor
ATTEST:
Mattie Cunningham, City Clerk
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APPROVED AS TO FORM:
..f'
.,.., .' .'
T. K. Haynes, City Attorney
MARVIN-JENNINGS-CLARDY
WATER CORPORATION
By:
J. C. Jackson, President
ATTEST:
Secretary
STATE OF TEXAS ~
COUNTY OF LAMAR ~
BEFORE ME, the undersigned authority, on this day personally
appeared Eric S. Clifford, Mayor of the City of Paris, known to
me to be the person whose name is subscribed to the foregoing
instrument, and the purposes and consideration therein expressed,
and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this _ day of
, 1990.
Notary Puolic, State of Texas
Printed Name:
My commission expires:
-11-
; f.
. .
STATE OF TEXAS ~
COUNTY OF LAMAR ~
BEFORE ME, the undersigned authority, on this day personally
appeared J. C. Jackson, President of Marvin-Jennings-Clardy Water
Corporation, known to me to be the person whose name is
subscr ibed to the foregoing ins trument, and acknowledged to me
that he executed the same for the purposes and consideration
therein expressed, and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
, 1990.
day of
Notary Public, State of Texas
Printed Name:
My commission expires:
-12-
.
.
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