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WHOLESALE WATER CONTRACT
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THIS AGREEMENT, made and entered into by and between the CITY
OF PORT ANGELES, a municiapl corporation, hereinafter called the
City, and PUBLIC UTILITY DISTRICT No. 1 of CLALLAM COUNTY, a municipal
corporation, hereinafter called the District, WITNESSETH:
THAT WHEREAS, there has been in existence between the City and
the District a wholesale water contract, and the parties hereto de-
sire to continue said contractual relationship and to extend the
sale of water by the City to the District commencing January 1, 1981
and continuing until termination by written request of either party.
NOW, THEREFORE, the City agrees, to deliver and sell to the
District at the present service connection, the wholesale water
requirements of the District at the rate of twenty -five cents (250
per one hundred (100) cubic feet per month. This rate shall remain
in effect until September 1, 1981 and may be renegotiated thereafter.
The point of delivery shall be at the present service connection
of the District, and the amount of water to be delivered by the
City and purchased by the District shall be limited to 55,000 cubic
feet per day, which amount will be receivable through the present
service connection.
In the event of a water shortage or drought conditions, the
District will be limited to eight (8) percent of the total "City
Supply" from the Elwha River system. The District will be notified
when a shortage condition exists and be informed of limitations on
their ability to draw water. In the event that the 8% restriction
cannot be met by the District and more than eight percent is con-
sumed, the City will have the right to place mandatory restrictions
and /or monetary penalties on the District.
The water purchased by the District shall be for the customers
of the areas served by said District East of the City of Port
Angeles, and none of said water shall be used or sold for use of pre-
mises or in areas for which service has been established from the
water system now operated by the City, and it is agreed that neither
party will compete with the other in the sale of water in the areas
now serviced by the other party.
It is further agreed that if, during the term of this Contract,
the District should reduce the water rates to its customer served
with water purchased from the City, this Contract may be immediately
re- negotiated.
All water supplied under this Contract after it passes the
point of delivery shall be the property of the District and the City
shall not be liable for any loss or damage to any person or property
whatsoever resulting directly or indirectly from the use thereof of
WHOLESALE WATER CONTRACT page 2
December 22, 1980
Continued
the District or its customers, and the District agrees to indemnify
the City for, and save it harmless from, all loss or damage which
the City may suffer or incur by reason of the assertion of any such
claim against the City, including all fees, costs, expenses and
attorney fees incurred in defending against such claims.
The City agrees to use reasonable diligence to furnish unin-
terrupted service but shall not be liable for any interruptions
caused by strikes or any other labor disputes, accidents, or acts
of God, or any cause beyond the control of the City, or by the
necessity for making repairs or changes in the pipeline or other
facilities, and the District waives and shall not assert any claims
against the City for damages to the District caused by any suspen-
sion, interruption, failure or curtailment of service under this
agreement.
It is further specifically agreed that billings for services
rendered shall be paid by the District monthly, and in the went the
District fails to receive a monthly bill, such failure shall not
release the District from liability for payment. Provided, however,
if payment in full is not made on or before the close of business
of the fortieth day after the due date of the bill, a delayed charge
of two (2) percent of the unpaid amount of said bill will be added
to the amount due.
DATED this 3" day of 19 p'/
ATTEST: CITY OF PORT ANGELES
e ieaArr_eit2 ,v/a
City Clerk
ATTEST: PUBLIC UTILITY DISTRICT N0.1 OF CLALLAM COUNTY
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Secretary
Approved as to form;
/itY Attorney
May
President