Minutes 09/27/1955 - Laserfiche WebLink

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. ~ September 27th, 195~. "This contract, made as e~f tko 27th day o2 September, 1955, between the Nestle Company, Inc.', a ~ew York corporation (hereinafter called 'Nestle'", ~nd th~ City mf Portsmouth, a municipal corporation e£ the State of Virginia (hereinafter called the 'City'). Nestle has an option ena plant site in Nansem~nd County, ¥irginia, approximately three and ~n~-h41~:. _ m~les ~or~heast of Shff&ik, and i~ considering ~he' iecatien thereon of a manufactu~ring plant (here- inafter called ~he '~lant') kf' it~ can be assure~ (amOng othe~ t~gs) of a~ 'satisfactory water supply. The City owns and operates a public water s. ys~em servin~ PortsmoUth, Suffolk ahd certain adjacent areas, and is willing if requested by Nestle to construct and maintain a water main which will make water available for sale to Nestle at such plant, but only upon tko terms and conditions hereinafter set forth. NOW,. THEP~FORE, in consideration of the premises herein ma~e by the parties, and the services ~e be rendered and the payments ~o be made, one to the ether, the parties~ agree with each other as fol - lows: (i) If r~.q~-ested by Nestle as hereinafter provided, the City agrees ~o construct a twelve inch mechanical joint, cast iron, enamelined, water main (k~re~n~fter~ called the 'water main'), in accord- anco with A.W.W.A. specifications, with pipe, valves and fittings to meet the sthndards of~ the Por~emo~lth ~ater Department, from a po~int. (cpn_ne_ct~_in~ its present ws~er syste~) at~ th~ cok~ner o{ Katherine Street and Conatanee Road in the City of S~-~folk to the proP~d plant site of Nestle in the County e£ Nansemond, Virginia, and to vance the flLll a~ellht ':~f the cost thereof. The water main shall ne~ be c~ns~r{leted until (i) Nestle determines · o cons~ruc~ a p{ant at the proposed site, (ii) the cos~ of the water main has 'Goon determined as provided in paragraph (2) below and approved by Nestle, and (iii) written notice requesting the City to proceed with the con- struetion theree£ has been given the City by Nestle. The obligation ef the Cit~ hereunder shall terminate unless such request ~o pro, ced has h~en received from Nestle within three years from the date hereof. The water main is to be the preper~y of the City a~ all timeso (2) Upon receipt of the reques~ from Nestle contemplated by ~aragr.aph (1) above, the City will proceed as promptly as practicable to cons~ruc~c, or cause to~ be constructed; the water main. If the City desires ~o construct the water main itself, the c~St. of the water main shall he determined by written mutual agreement ~f the parties prior to the commencement of construction thereof. ~ If the water main is no~ ~e be con - structed by the City er in the even~ the parties can no~ agree up~ its cost, then the City st~ll obtain written bid~ for construction of the water main from not less than three responsible contractors~, and a contrac~ fmr such construction shall be awarded the lowest responsible bidder in the customary manner, tak~ into consideration the quality and durability of the work te he performed; provided that the City shall have the right, and upon request from Nestle will exercise such right, ~o rejec~ all bids and call for further bids. A performance bond or bo nds in form e~temarily accepted by the City shall be' required from any such contractor. A~y bid accepted by the ~ty with t~e al~pr~vaI 8~-~s~SLe 'shall. be. the: cost ef t~e ~ater E~in, subjebt ~o any changes mutually agreed upon in writing by the parties. - (3) Sklhje~t to the provinie~s of paragraph (4) helow~ N~lle agrees to pay ~e the City? as a standby eharge for the water service specified in-paragraph (5) below, an aggregate a~unt equal to the ¢~st o~ the water main (as determined above), such amoant to b~ paid by Nestle in twenty equal annual installments, the first of which shall he p.~aid en the first-day o~ the mo~th following the day the.water En is completed and ready for use ~ad a like installment paid' ~n the first day of the s~me month in each year thereafter until the City has been reimbursed the cost of the water main. (4) The City agrees, as its contribution to the cost of the water main, ~o apply as a credit on and to deduc~ from each annual payment due By Nestle under paragraph (~) above an ame~nt~eJqual tm 1/5 of the total amount paid by Nestle ~e the City during the .preceding 12.~months for water purchased ~rem the City hy N~stle £er use at the plant, provided tha~ in the case of ~ne~ ~?n~i~t_h ~yea_r_s_ueh &redit shall be made on Nes- tle's water bills ewecI~by the City. Nestle may carry f~rward from year ~o year any credit in excess ef th~ an~al standby charge paid by Nestle under paragraph (S)'ahave, provided lhat the aggregite of all such credits Nestle shall not exceed the cost of the water main. (5) Nestle expects ~o require for its proc essing and other purposes approximately 200,000 to 300~000 galloBs of £imished water per day. In additien~ Ne~$%t~_$ desires E~er service ena standby basis to meet its other possible requirements. To meet these possible require~ments, and if the wa~er main is' con- stracted as above contemplated, the City agrees to maintain for Nestle at its plant a flow rate of 350 gallons of finished water per m~nnteo The City will provide this water servic~ for a period ef 40 years (being the useful life of the water main) commencing with the date on which tlie City notifies Nestle tha~ the water mDain has been completed and is ready for service~ It is agreed/ however, tlfat in case the City's Supply of water should be interraptod or fail by reason of accidents, drought, strikes or causes ~eyond the control of the City, such interruption or failure shall not constitute a breach (~f this cont~ract. In such event, the City agrees to use its best efforts to restore the agreed ~upply of water as soon as p~acticahle. ~est'le shall not he obligated to pur- chase any quantity o£ water, but for all wa~er purchased by it hereunder NeStle agrees to pay the City therefor a~ the reg~Llar schedule of ra~es and charges applicable at ~the time t~ the inhabitants o£ Nansemo~ld County. There shall be ~o charge to Nestle for hydrant servic$ or fkre protectio~ other ~han for water actually ~sed. "Finished water" shall mean water of substantially the same quality as is now being delivered by the City ~o customers for domestic consumption. (6) The City is entering into a contract with Nansemond County, acting through the Board o~ Supervisors~ pursuan~ to which the COunty has agreed, amomg ~ther things, to f~Lrnish ~o the City the necessary rights of way and ease~ients for the~ construction and maintenance, of the water main. It is understood that the obligations of the City hereunder are su~ect to ~he executiell o~ such contract by .t_he COan.ty and the performance of its ag~eemen~ to furnish such rights of way an~l easements. (7) The parties also agree that should Nestle~ desire, at any time within ten years from the date of th~s contract, to secure ~mtreated water from lakes of the City, it may at its own expanse, in order to secure surplus wa~er, cause ~o be laid a ~ater main leading from the City lakes to the Nestle plant, mid it will pay to the City for the surplus water taken hy Nestle from such lakes the su~ of two cents l~r one thousand gallons for water taken while water is overflowing ~he spillway, or dam of the lake, and th~ sum of five cents per o~e thousand gallons ~for~water take~iwhile water is not overflowing the spillway. IN WITNESS WHEREOF, Nestle has cau~d its nm tG be hereunto signed by Joha C.Sluder, its Vice President, and its corporate seal ~o be hereto affixed, a~tested by E.O..Curran, its Secretary, S~l~d the City of Portsmouth has caused its nam~ to ho'hereunto signed by F.A. Duke, Mayor and President of the City Council, and its corporate seal to be hereto affixed, attested hy A.P. Johnson,Jr., City Clerk. The Nestle Company, Inc. by John C. Sluder Attest: E.0. Curran, Secretary Vice President. CITY OF PORTSMOUTH, by F.A. Duke, Mayor and President Attest: A.P. Johnson,Jm., City Clerk ." of the City Council