3.3 3.3
AGREEMENTS\MOREAU—Purchase of 100000 Gallons Additional Capacity—7-20-2020
RESOLUTION ACKNOWLEDGING TOWN OF MOREAU'S PURCHASE
OF ADDITIONAL 100,000 GALLONS OF RESERVED CAPACITY FROM
TOWN OF QUEENSBURY ON BEHALF OF QUEENSBURY
CONSOLIDATED WATER DISTRICT
RESOLUTION NO.: ,2020
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, by Resolution No.: 492,98 the Queensbury Town Board, on behalf of the
Queensbury Consolidated Water District, entered into an Intermunicipal Agreement with the Town
of Moreau for the Town of Queensbury's sale of water to the Town of Moreau, which
Intermunicipal Agreement has been subsequently amended, and
WHEREAS, in accordance with the Intermunicipal Agreement, as amended, the Town of
Moreau is currently entitled to a Reserved Capacity (meaning the daily water reserved for Moreau
under the Intermunicipal Agreement) of 1,250,000 gallons per day, and
WHEREAS, the Town of Moreau wishes to purchase an additional 100,000 gallons of
Reserved Capacity for $106,000 in accordance with the terms set forth in the Section IX of the
Agreement, and
WHEREAS, the Town of Queensbury Water Superintendent and Queensbury Town Board
wish to acknowledge the Town of Moreau's purchase request and affirm that such purchase would
result in the Town of Moreau having purchased a total of 1.35 million gallons of Reserved Capacity
per day to date,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby acknowledges the Town of
Moreau's purchase of an additional 100,000 gallons of Reserved Capacity for $106,000 in
accordance with the Intermunicipal Agreement with the Town of Moreau, and hereby affirms that
such purchase results in the Town of Moreau purchasing a total of 1.35 million gallons of Reserved
Capacity per day from the Town of Queensbury on behalf of the Queensbury Consolidated Water
District, to date, and
BE IT FURTHER,
RESOLVED, that the Town Board hereby authorizes and directs the Town Supervisor,
Town Water Superintendent, Town Budget Officer, and/or Town Counsel to take such other and
further actions necessary to effectuate the terms of this Resolution.
Duly adopted this 201h day of July, 2020, by the following vote:
AYES
NOES
ABSENT:
2
Town Moreau Kyle Noonan
Deputy Supervisor
351 Reynolds Road '
Moreau,NY 12828-9261 - John Donohue
a.= Councilmember
Theodore T. Kusnierz John Hogan
Supervisor Councilmember
Phone:(518)792-1802 Fax:(518)792-1062 Gina LeClair
E-mail:moreausuperPtownofmoreau.or 7 _ = Councilmember
RESOLUTION TO PURCHASE ADDITIONAL WATER CAPACITY
Resolution No. 2 0 20—1 9 2 Date: 6/23/2020
Motion By: Councilmember LeClair
Seconded by: Councilmember Noonan
WHEREAS:
The Town of Moreau entered into an Intermunicipal Agreement(IMA) with the Town
Board of the Town of Queensbury on behalf of the Queensbury Consolidated Water District on
the 1st of February, 1999, and;
WHEREAS:
Section IX of the aforementioned IMA grants the Town of Moreau the right to purchase
additional Capacity from Queensbury;
So be it RESOLVED:
That the Town of Moreau purchase additional Capacity of 100,000 gallons per day from
Queensbury in an amount not to exceed S 106,000, to be paid pre-audit and from all six water
districts in the Town of Moreau.
Roll call results as follows:
Councilmember LeClair Aye
Councilmember Noonan Aye
Councilmember Hogan Aye
Councilmember Donohue Aye _
Supervisor Kusnierz Aye
APPROVED:
Town Clerk
INTERMUNICIPAL AGREEMENT
BETWEEN
THE TOWN BOARD OF THE
TOWN OF QUEENSBURY
ON BEHALF OF THE
QUEENSBURY CONSOLIDATED WATER DISTRICT
AND
THE TOWN OF MOREAU
transmission line and storage facilities within Queensbury to determine that Moreau will receive
potable water prior to start up.
SECTION IX. ADDITIONAL PURCHASES/RIGHT OF FIRST REFUSAL
A. Additional Purchases. During the term of this Agreement, Moreau shall have the right
to purchase additional Capacity incrementally in the amount of 50,000 gallons per day. Any
purchases for additional Capacity shall result in a corresponding per gallon decrease in the total
amount of Moreau's right of first refusal as specified below. Moreau shall pay Queensbury for the
capital costs associated with the additional Capacity in full within six (6) months of providing written
notice to Queensbury of its intent to purchase additional Capacity and prior to Queensbury's
obligation to furnish additional water. Moreau shall pay its share of operation and maintenance costs
and any reconstruction costs for such additional Capacity pursuant to Section VIII hereof.
B. Right of First Refusal. Queensbury shall grant Moreau a right of first refusal to
purchase up to one million (1,000,000) gallons per day of additional Capacity from the Facility less
any additional capacity purchased by Moreau as provided above. At such time when Queensbury
shall exceed using 13,000,000 gallons per day of Capacity from the rated 15,000,000 gallons per day
capacity per DOH, Queensbury shall give Moreau written notice that Moreau shall have two (2)
months to exercise its right of first refusal and purchase 1,000,000 gallons (in 50,000 gallon per day
increments)of additional Capacity. Moreau shall exercise such right of first refusal by written notice
to Queensbury stating that Moreau shall purchase such additional Capacity within sixty (60) days
of Queensbury's written notice. If Moreau shall not exercise its right of first refusal within two (2)
months of Queensbury's written notice, then this right shall terminate. The determination of whether
Queensbury has reached 13,000,000 gallons per day of use and that any further use or sale of
capacity will decrease Moreau's 1,000,000 gallons per day right of first refusal shall be made by
Queensbury.
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Moreau shall pay the capital costs associated with such additional Capacity under the right
of first refusal in full within six (6) months of giving its written notice and prior to Queensbury's
obligation to furnish additional water. Such capital costs shall be calculated by Queensbury using
the same formula and methodology as was used for the original 1,000,000 gallons hereunder.
Moreau shall pay its share of Operation and Maintenance costs and any reconstruction costs for
such additional Capacity pursuant to Section VIII above. All other terms of this Agreement shall
continue for the original Reserved Capacity and the additional Capacity purchased hereunder.
The capital buy-in cost for any additional Capacity will be $53,000 per 50,000 gallons per day or
$1,060,000 for the full 1,000,000 gallons per day right of first refusal provided for in this Agreement
plus the proportional share of capital improvements, if any, from the date of purchase of additional
Capacity to maintain the plant defined in the Agreement as "reconstruction costs" plus the
proportional share of the future upgrade costs per Section II(B) above.
While the total Capacity entitlement to Moreau pursuant to this Agreement is up to 2,000,000
gallons per day, nothing hereunder shall prohibit Moreau and Queensbury from entering into a
mutually acceptable agreement for Moreau to purchase additional Capacity beyond or above
2,000,000 gallons per day.
In the event Moreau has fully exercised its right of first refusal for the additional Capacity of
1,000,000 gallons per day and there is no additional Reserved Capacity available at the Facility,
nothing hereunder shall prohibit Moreau and Queensbury from entering into a mutually acceptable
agreement to expand the capacity of the Facility to meet Moreau's water needs.
C. Governmental Requirements. In the event Queensbury shall, subsequent to the effective
date of this Agreement, be ordered by DEC, DOH, EPA, or any successor agencies thereto, or other
governmental agency with authority to so order Queensbury, to modify the Facility, Moreau shall pay
one-fifteenth (1/15) of such modification costs but only if the modification is necessary to deliver
water to Moreau. Queensbury represents there is no current written order of DEC, DOH, or the EPA
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