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HomeMy WebLinkAbout1994-33 - Termination of Water Service Agreement with Missouri Cities Water Company#34015; 05/18/94 BILL NO. ~ ~~y ORDINANCE NO. y-~.3 AN ORDINANCE AUTHORIZING THE EXECUTION OF A TERMINATION OF WATER SERVICE AGREEMENT WITH MISSOURI CITIES WATER COMPANY. BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: Section 1. The Mayor and City Clerk are hereby authorized to enter into an agreement with Missouri Cities Water Company for the termination of water service. PASSED THIS __L~ DAY OF ~ ~"~~~`-'~--- , 1994. MAYOR " ATT T: ~~ ~ j fI !.Y,~ a~ J ~ 4~y1t, ~T ; ~~ CI~SC CLERK "mil-~ APPROVED THIS /~~ DAY ~F ~ Lc. .~ , 1994 . i 0 MAYOR r ~_ TERMINATION OF WATER SERVICE AGREEMENT Made as of the ~~~~~ day of ~;~E_~~''i'c,~~~t~ 1994, between the CITY OF RIVERSIDE, MISSOURI, a fourth class City of the State of Missouri, under the provision of Chapter 79 of the Statues of Missouri, hereinafter called the "City", and MISSOURI CITIES WATER COMPANY, a corporation of the State of Missouri, hereinafter called the "Water Company." WITNESSETH: WHEREAS, the City is engaged in supplying sewer service to the citizens and residents of the City; and WHEREAS, the City charges a fee for such sewer services and bills such fee on a periodic basis to its citizens and residents so served; and WHEREAS, the City is obligated to collect delinquent sewer bills from its citizens and residents so served; and WHEREAS, the water Company is the owner and operator of a water distribution system serving customers in the City, subject to the laws of the Sate of Missouri and the Jurisdiction, Rules and Regulations of the Missouri Public Service Commission; and WHEREAS the Water Company is authorized, at the request and direction of the City pursuant to the provision of Section 393.015 of the Revised Statutes of the State of Missouri, to terminate water service and discontinue the supply of water from its system to any premises, at which the sewer bills for sewer service supplied by the City are unpaid, NOW THEREFORE, in consideration of the sum of ONE DOLLAR (51.00) and other good and valuable consideration, and the covenants hereinafter expressed, the parties hereto do mutually agree as follows: i. When in the course of its business, the City determines, pursuant to state statute, that city sewer charges remain unpaid and are in arrears for more than thirty (30) days after rendition of a written notice of such charge sent by certified mail to its sewer customer, and the City makes written request to the Water Company to terminate water service to the City's sewer customer until such time as the sewer charges and all related costs are paid, the City shall by written r_ertification signed by the individual authorized by the City, certify to the Water Company. (a) the name of the City's sewer customer that is in arrears on payment of sewer charges; (b) the address of the premises where such customer received sewer service; {c) the name and address of the property owner of such premises provided the name of the owner is different from the name of the City's sewer customer; (d) the amount of said arrearages; (e} that said sewer customer's charges are in arrears for more than thirty (30) days after sending written notice by certified mail; (f) that said sewer customer has been afforded written notice by certified mail of: (1) the arrearage amount and, (2) the City's intent to terminate sewer services by means of a written request to the Water 2 Company to discontinue said City sewer customer's water service; (g) that the City's sewer customer has been afforded a right to be heard on the correctness of the City's record of arrearage; (h) that all Federal and State Constitutional as well as all Federal and State statutory pre-requisites applicable to the collection of debt have been properly satisfied by the City; (i) that the City has complied with its own ordinances and procedures; such request and certification by the City shall be in the form of Exhibit A which is attached hereto and incorporated by reference. 2. Upon receipt of the written request and certification as set out in paragraph 1, the Water Company shall within 30 days: (a) give at least (1P~) days written notice to its customer, who is identified by the Water Company's records to be the person liable for the Water Company's bills at the premises as identified by the City, of the date and time certain on which the water services to the premises will be terminated at the request of the City. A copy of the City's written request and certification to the Water Company shall accompany such written notice; and 3 (b) on the date and time specified above, an employee of the Water Company, along with an authorized representative of the City, shall go to the premises as identified by the City and terminate the water service to such premises after having first advised any responding person present at such premises of the termination of water service at the request of the City due to non-payment of sewer bills. PROVIDED HOWEVER, Water Company shall not be required to terminate such water service in the event its customer at the premises as identified by the City is a person or entity other than the City's sewer customer. 3. The Water Company, at the direction of the City, in writing, shall restore water service to the premises of the City's sewer customers, whose water service has been terminated as herein provided. However, not withstanding anything to the contrary herein stated or implied, the Water Company may restore water service to any premises where the water service has been terminated as herein provided upon the bonafide application for water service by any person or entity other than the City's sewer customers whose water service was terminated at such premises. 4. Inapplicable PSC Notice Requirements. All notice and complaint procedures specified in 4 CSR 248, and Chapter's 386 and 393 RSMo which apply to customer rights to utility service from a regulated utility, SHALL NOT APPLY to termination instructions issued by the City pursuant to this agreement. 4 All notice, complaint procedures and administrative consumer remedies, to the extent that they may exist or be alleged to exist, shall be the responsibility of the City. 5. The City and the water Company shall establish a mutually beneficial schedule and procedure pertaining to the filing and processing of the City's requests for termination of water service as herein provided so as to not unduly restrict, interfere with or impede the Water Company from performing its duties and responsibilities in providing water service to its customers. Not withstanding anything to the contrary herein stated, the Water Company reserves the exclusive right at its sole discretion to process the City's requests for termination of water service, on such schedules at such times as are convenient to the Water Company consistent with the Water Company's normal business practice and procedure. 6. The City shall pay to the Water Company, concurrently with the delivery of the written request mentioned in paragraph 1 above, the sum of Sixty-two and 47/100 Dollars (562.47) to cover the Water Company's cost of terminating the water supply to each premises listed in such request. Such amount shall not be subject to refund for any reason except that in the event the Water Company does not discontinue such service pursuant to paragraph 2 above, the sum of Twenty-two and 07/100 Dollars (522.07) shall be refunded. The City shall also pay to the Water Company, upon its request therefor, the further sum of Twenty-two and 07/100 Dollars (22.07) to cover the Water 5 Company's cost of restoring water service to each such premises. In the event that more than one hour is required for either the termination or restoration of water service to any such premises, the City shall pay the actual cost thereof to the Water Company based on time, matserial, transportation ar~d other fixed charges. The fees fixed hereunder may be amended from time to time as agreed by the parties hereto. 7. The City, in addition to the sums as set out in paragraph 5, shall pay to the Water Company the estimated loss of water revenues resulting from each such termination made hereunder. Such estimated loss of water revenues shall be based upon the actual period to time during which the supply of water is disr..ontinued in each instance and the average water revenue received by the Water Company for a like period of time during the year prior to such termination from the class of customer involved in each instance, as determined from the books and records of the Water Company. The estimated loss of revenue shall be billed by the Water Company to the City periodically at the same times as the Water Company would have billed the customer if t:he water service had not been terminated, and the City shall pay each such bill within thirty (38) days of receipt thereof. Notwithstanding anything to the contrary herein stated, the City's ok~ligation to pay to the Water Company the estimated loss of water revenues resulting from each termination made hereunder, shall not exceed the average water revenue received by the Water Company during one {.1) billing period for each such terminat.i.on. 6 8. The Water Company shall not be liable for any loss, damage or other claim asserted by the City's sewer customers, the owner and/or tenant of the premises, the water customer, the City or any other person, corporation, or entity based upon or arising aide of the termination of water service at the request of the City. To the extent permitted by law, the City agrees to indemnify, defend and hold Water Company harmless from and against any and all. claims, complaints or causes of action arising out of. actions taken by Company pursuant to any City "Instruction to Terminate Service." Because Water Company is providing a service to City at cost and has no incentive whatsoever to take the risk of claims, complaints or causes of action arising otat of actions taken pursuant to this Agreement, if City at any time asserts that it is not permitted by law to indemnify Water Company under the provisions of this paragraph, or is limited in the extent of is indemnification, or for any other reasons takes the position that Water Company must defend itself or be responsible for some or all costs arising from such claims, all Water Company obligations under this Agreement shall terminate as of that date. 9. City shall handle all customer communications regarditlg service terminations implemented pursuant to this Agreement. Communications from customers to Water Company shall be referred and directed to the City. lm. Water Company's actions required under this agreement shall be excused if due to matters beyond its control, including but not limited to employee work stoppages, strikes, 7 inclement weather, or emergencies requiring utilization of manpower or resources elsewhere. Termination will not be completed if a local board of health, municipality, fire district, court of competent jurisdiction or other governmental entity having Jurisdiction issues an instruction to the Water Company so stating. At such time, Water Company will relay such conflicting instructions to the City and Water Company will not knowingly take further actions toward termination until City notifies Water Company in writing that it has resolved the conflicting instructions. Thereafter, the City shall indemnify defend and hold Water Company harmless for actions taken by the Water Company based on the City's notification. In no event shall Water Company be required to disconnect a fire line service without authorization from the governmental authority responsible for fire protection to the affected property, even in cases of combined fire and domestic service lines. 11. If a dispute shall arise between the parties hereto regarding any of the provisions of this agreement, such dispute may be submitted by the parties to the Missouri Public Service Commission, whose decision, unless reversed on appeal, shall be final. 17_. This agreement may be terminated by either of parties Yrereto by thirty (38) days written notice given to the other party at its principal place of business. 13. Upon execution of this Agreement by the City and the Water Company, the water Company shall immediately submit 8 this Agreement to the Missouri Public Service Commission for approval. This agreement is subject to the approval of the Missouri Public Service Commission and is further subject to the Rules, Regulations and 'Tariffs of the Water Company as same are presently on file with and approved by the Missouri Public Service Commission and a the same hereinafter be filed with and approved by the Missouri Public Service Commission. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed as of the date first above written. CITY OF RIVERSIDE, MISSOURI Mayor MISSOURI CITIES WA~T~1~ COMPANY Ip3e,.. e ice Presi 9