Agenda - 1992 - City Council - 04/28/1992 - Regular (2) City of Eagle
Pre-Council Meeting
Tuesday, April 28, 1992
6:30
AGE ND]t
Aqreement for Transfer and Operation of Domestic Water System.
A. Background
Lexington-& Treasure Valley Village own Lexington
Hills and Echo Creek subdivisions and the domestic
water system which supplies water to those
subdivisions.
Lexington and Treasure Valley Village have a
continuing obligation to construct the water system
after conveyance to the City, for the additional
phases.
Lexington and Treasure Valley Village desire to convey
the water system to the City of Eagle according to the
following terms and conditions:
Conveyance of well lots by warranty deed; free from
any liens; access easements to well lots
The City will obtain owner's extended form
title insurance in the amount of $100,000 for
each well lot, at their own cost.
2. Conveyance of personal property by bill of sale.
Conveyance of second well lot after
preliminarily approves the second well.
DEQ
Lexington and Treasure Valley Village will complete
construction of the water system, including any
additional wells and reservoirs, necessary to serve each
phase of their developments.
D. Lexington and TVVwarrant:
Built according to P & S; designed to service lots
in phase 1 and each phase as conveyed;
2. One year developer's warranty;
OUTLINE, P. 1
3. Assignment of equipment warranties;
Lexington and TVV will assign their water permit to the
City.
City is responsible to ensure that the permit
requirements are satisfied.
The City agrees to supply a quantity of water sufficient
to refill the lakes twice, in non-irrigation season, to
the Homeowners Association, at a rate of 50% of the rate
for residential users, subject to storage of water being
determined to be a beneficial use under the permit.
City is put on notice as to the contents contained in the
30-day test. There is no guarantee or warranty as to the
sufficiency of quantity of water.
City will manage and maintain the water system.
City is to maintain water quality.
Reimbursement of operation losses -- Lexington and TVV
agree to reimburse the City for the water system
operating losses until that point in time that the water
system breaks even. The City is to repay Lexington and
TW 100% of all income from the water system, including
hook up fees, after operating expenses, until Lexington
and TVV are repaid.
The water system transfer is subject
final certificate of compliance with
within 12 months of the agreement.
to DEQ issuing a
State regulations
Caveat: No representations are made to the City as to
quality or quantity of the water available. This risk is
to be borne by the City.
II.
Water Service Contract.
A. Management contract with Engineering,
Maintenance, Inc. ("EM2, Inc.")
1. Terms and conditions
a. EM2, Inc. will:
1) furnish and install
Management and
meters which become
OUTLINE, P. 2
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
part of the water system;
provide normal maintenance of system;
read meters;
prepare bills;
report receipts to the City;
meet state water quality reporting
requirements;
perform extra work as requested by the
City;
provide liability insurance of $1,000,000;
prepare reports as requested by the City;
comply with City rules and ordinances;
collect delinquent accounts;
attend counsel meetings;
fe
Fees and charges:
1)
2)
3)
meters, $120.O0/each, installed;
$100/month or $3.00/user/month, plus
mileage;
Council meetings and extra work at
scheduled rates, i.e., supervisor
$20.O0/hour;
Term:
1)
2)
3)
4)
1 year;
automatically renewable;
with 60 days notice either party can
cancel;
rates may be increased annually, 60 days
prior to anniversary date of contract,
must be approved by City;
Initial rates, same as South County Water
Company except, as amended by the City
Council.
City to establish a lock box arrangement, with
a financial institution, to receive all water
bill payments, at its sole cost.
Miscellaneous
1)
EM2, Inc. agrees to make its records
available to City.
OUTLINE, P. 3
III. Rates. Rules and Regulations for the Operation of the Water
System of the City of Eaale, Idaho.
B.
C.
D.
Establish water service area.
Create City water department and name superintendent.
Adopt construction standards.
Adopt rate schedule.
OUTLINE, P. 4