Agenda - 03-09-1992 - Laserfiche WebLink

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abandon any interest that it may have in the development of a raw water impoundment or reservoir on the Haw Creek, and further agrees that it will advise the appropriate regulatory authorities that Orange- Alamance has no interest in having said basin designated as a future potable water supply area. 2. Attached hereto as Exhibit A is a map which generally represents ,the twenty to twenty -five year growth area for Graham and Mebane, with the. respective growth area of each municipality indicated upon said map. Much of said growth area is included within the existing future development area of the Orange- Alamance Water System, Inc. Graham and Mebane agree that each will sell to Orange - Alamance at its prevailing best customer price, or such other suitable price as shall be mutually agreed to by the parties, sufficient water to supply all customers of Orange - Alamance within the respective growth areas of Graham and/or Mebane. It is understood by all parties that Orange- Alamance must first utilize its allocation of water resources from the Eno River Reservoir prior to the purchase of water from Graham or Mebane, except in emergency situations wherein the parties agree to make water available to Orange- Alamance on an equitable basis. 3. LIMIT ON WATER SALES. All parties agree that in no event, without the prior consent of Graham and Mebane, will water purchased by Orange - Alamance from Graham- Mebane be resold to the Town of Hillsborough or any other system. The intent of this Agreement being to supply water to Orange- Alamance for its existing system or any expansion thereof. 4. APPROVAL OF ADDITIONAL EXPANSION. Orange - Alamance agrees that as to expansions of its systems, an expansion to serve any single user or subdivision with requirements in excess of 50,000 gallons of water per day will require the prior approval of all parties when such user's needs must be met by the purchase of water from either Graham or Mebane. 5. ANNEXATION OF AREAS. In the event that either Graham or Mebane shall annex areas served by Orange - Alamance, the annexing City agrees that it will purchase Orange - Alamance water mains in the annexed area at a price determined by replacement cost less depreciation. From and after the purchase of said lines, the purchasing municipality shall be responsible for all upkeep, maintenance and repair of said mains. The customers on the Orange - Alamance Water System served by the water mains purchased by either City may become the property of that City or remain the property of Orange - Alamance Water System, as the two entities decide between themselves. In the event the parties do not agree on whether or not the customers will be transferred, the customers shall remain customers of Orange- Alamance Water System. Notwithstanding the transfer of title of the water mains in the annexed areas to the City in question, Orange - Alamance Water System shall be permitted to continue to use said water mains to transfer water to its remaining customers. 6. ADDITIONAL DOCUMENTS. Each party agrees to execute and deliver such other and further documents as shall be necessary to effectuate the purpose and intent of the agreements herein set forth. IN WITNESS WHEREOF, ORANGE- ALAMANCE WATER SYSTEM, INC. has caused this Agreement to be executed by its duly authorized officers and its corporate seal affixed, and the CITY OF GRAHAM and the CITY OF MEBANE have caused this instrument to be executed by its Mayors and their City Clerks, with their municipal seals duly affixed hereto, all by authority of Resolutions duly adopted.