Resolution 9516 (a)
RESOLUTION xo. 9516
WB.DlEAS, the 01'1 of J.f1am1 Beach 1. AOW
Ihtpp171as water to . 1he z-ealden'. ot.ald ct'7 'by 'Y1I't..
. of a COAtrao\ dated Jue 29. 1944. b)' lU\cl l>e~_.A .aid c~
aDd the Dep8l''t;Iaent cfWater aD4 Sewere or ,he C1., or M1. ,
Florida, 8Dd
WHEREAS, sald coatraet v1.l1 oJCpll"e Oil the 28th dq
ot June, 19S9. aDd
WJnittEAS, 1A ..del' to uare to ,.be ct" o~ H1Ul1
Beach a .qpl)" of potable va":r. it 1. d...d advleabl. to ente:r Q.J
lata a coasl'aot v1 UJ. .ald Dep......a'ti or Water aA4 Severs of the h
01'1 or !U.s., '07 tlI.. 'enu 01' 'Nh1oh ,he aald a.en_" will R5
..... to 1"...1ah aaet She Cl'7 or Mlud. Beach 11111 ..... to
pt.U'elI&.. an ......t. ....,p17 ~....t.:r tor 1lbe te.. or th11-ty (30)
78&1:*1, 0.....1&8 OIl ,be .ald 28td1d&J' or .1.... 1959. 8Ild
'WBiltEAS, at'.r ..yeral coare:z-enc.. 'between
represent.ti...ot tbe pAl'tl.., a .tlaal dJlatt ot a pl'opo..d
OOAux-aot baa been preP..4 aad. haa been approved D7 the 01t7'.
.'tuorAe7 aa to 1_. tOJ'll' IUld
WliREAS, the 01'7 CaUDell ot \be C1'7 or Miami
a.acb, Florid. 1s taa111U" with the conteat. t1w..ot 8.Dd
d.... it to be to 'tbe 'tMift IAtere., of .a14 01'7 t.o eAter
tate .aid caatractJ
BOW, TlOmEFORE, BElT RESOLV1~D ax THE Cln coweIL
OF THE Cln OF MIAMI BlUCB, .FLORIDA that the Mqor and 'he
Olt7 Clerk or aaltl 01'7 be ud idle, ax. beft"" aa~l..d
to eaw.1" 1a '0 .ald o...'rae' on 1Mb.s.U ot aDd 1D. the 11... or
aaid ct,,...
1957.
PASSED aDd ADOPT'ED ib181QtO dq or J.... A.D.
(S1sned) Kenneth Oka
Jfa70r
ATTSST:
'CS1gned) R. WIll. L. Johnson
~t'7'cl.pk t
(SEAL)
I, R. WM. L. JOHNSON, CIty Clerk of the C~ty
of Miami Beach, Florida, ?o ~ereby certify
that the above and foregOing IS a true, a::d
correct copy of the original thereof on fll,.; In
this office.
WITNE~~ fY hand and the seal of said City
this 2m day of. -,J..lU1.1l.---u----------.,
A.D. 19_5-'1._.
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a:; ;:;:'jty of Beach, flonda.
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CONTRACT BETWEEN DEPARTMENT OF WATER~'(;Y'~"~_"~/
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AND SEWERS OF THE CITY OF MIAMI AND
THE CITY OF MIAMI BEACH PROVIDING
FOR THE RENDITION OF WATER SERVICE
BY SAID DEPARTMENT TO SAID CITY
THIS CONTRACT, made and entered into this 24th
day of
June , 1957, by and between DEPARTMENT OF WATER AND SEWERS OF
THE CITY OF MIAMI, an agency and instrumentality of the City of
Miami, said City being a municipal corporation organized and
existing under the laws of' the State of Florida (hereinafter
sometimes called the "Departmentu), party of the first part,
and THE CITY OF MIAMI BEACH, a municipal corporation organized
and existing under the laws of the State of Florida (hereinafter
sometimes called "Miami Beach't), party of the second part;
WIT N E SSE T H:
THAT, in consideration of the covenants and agreements
herein set forth to be observed and performed, the parties
hereto hereby covenant and agree as follows:
SECTION 10
general .E.u.r'.E.QE.G ~ Insofar as it ma..y be lawful to do so, the
Department shall sell and deliver to Miami Beach, and Miami
Beach shall purchase and receive from the Department hereunder,
all water necessary to fulfill the water requirements of Miami
Beach throughout the entire territory served by it at all times
during the effective period of this contract, such territory
including The City of Miami Beach, the Town of Surfside, Bal
Harbour Village, the Town of Bay Harbor Islands, Indian Creek
Village, and North Bay Village, and such other areas of Dade
County as the Department and Miami Beach have heretofore agreed
upon or shall agree upon hereafter in writing; provided, however,
that, in the event that, despite all reasonable diligence exerc~sed
by the Department in developing and maintaining adequate sources
of water supply, there should at any time be an insufficient supply
of water, due to causes beyond its control, available to fulfill
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the total requirements of all customers of the Departmept, the
Department shall be deemed to have fully performed its duties and
to have discharged its obligations hereunder if, in such circum-
stances, it shall furnish and deliver to Miami Beach its pro rata
share of such supply as is availqble.
SECTION II.
g~ality of Water. All water delivered by the Department here-
under shall be of good and potable quality satisfactory for
domestic use ~nd shall have received the same treatment and be
of the same quality as that furnished by the Department to
consumers in the City of Miami.
SECTION III.
Points of Delivery and Meter Readings. The water furnished here...,
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under will be delivered by the Department, and will be accepted
and received by Miami Beach, at the following points of delivery
in the City of Miami:
1. On N. E. 79th Street, approximately 1,250 feet
west of the Ue So Harbor Line of. Biscayne Bay;
2. On N. E. 15th Street, approximately 140 feet west
of the U. S. Harbor Line of Biscayne Bay;
3. On N. E. 13th Street, approximately 140 feet
west of the U. S. Harbor Line of Biscayne Bay; and
4. In the vicinity of N. E. 36th Street, approximately
200 feet west of the U. S. Harbor Line of Biscayne
Bay, to provide for the delivery of water to Miami
Beach at or near the western end of the proposed
new causeway between Miami and Miami Beach.
Prior to the completion of the construction of said
proposed new causeway, the Department shall construct a large
reinforced concrete or cast-iron water main, designed by the
Department in accordance with its design practices and speci-
fications, from N. Wo 10th Avenue and N. W. 20th Street in Miami
to said delivery point. The total cost of constr~cting said
water main shall be borne by the Department and Miami Beach jointly,
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the Department's share thereof to be the product of (i) such
total cost and (ii) a factor equivalent to the ratio of the
area of the cross-section of the interior of a 20-inch main to
the area of the cross-section of the interior of the main actually
constructed, it being agreed that a 20-inch main would be adequate
to fulfill the future needs of the Department for its distribution
systemo
Additional points of delivery within the corporate limits of
the City of Miami may be established at such times and places as
shall be mutually agreed upon by the parties heretoe Miami Beach
shall bear the entire cost and expense of establishing each such
additional point of delivery, obtaining such easements as may be
needed and furnishing all necessary labor and materials, except
the meter, required to connect with ~he Department's main, all
in accordance with plans and specifications to be approved by
the Departme?t. The Department will supply and install the meter
., and retain ownership thereof 0
Readings of each meter at all points of delivery shall be
taken by the Department on or about the 28th day of each month
and shall be used for monthly billing purposes under the pro-
yisions of Section V hereofo The accuracy of each meter will be
checked once each month at a time mutually agreeable to the
Department and Miami Beach.
SECTION IV.
~ater Pressures. The water furnished by the Department hereunder
shall be delivered to Miami Beach at each point of delivery at the
pressure which the Department, in the operation of its transmission
and distribution facilities, endeavors to maintain at such point
of delivery for the purpose of rendering adequate water service
in the City of MiamiG It shall be the obligation and duty of
Miami Beach to carry the water at its own expense from each
such point of delivery to the place or places of ultimate use
and, in so doing, to supply and impart to the water such addition-
al pressure as may be necessary to provide adequate pressure at
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all points beyond such point of delivery, in consequence whereof,
the Department shall not be responsible for insufficient pressure,
nor be required to correct any fluctuation in pressure, occurring
beyond any such point of deliverYg
SECTION Vo
~ate and Amount to be paid monthly by Miami Beagho Miami Beach
shall pay to the Department, and the Department shall accept
from Miami Beach, as compensation for all water delivered to Miami
Beach hereunder during each month of the effective period hereof,
a flat monthly service charge of one thousand two hundred fifty
dollars ($1,250000) plus the amount resulting from the multi-
plication of the total gallonage of watep so delivered during
such month by a ~ate per thousand (1,000) gallons consisting of
and equal to the sum of the following:
(a) the amount of all operating and maintenance expenses
experienced by the Department during such month in
connection with the operation of all property, real
and personal, used or held for use for (i) the
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production of water from wells or other sources
of supply, (ii) the pumping, transmission and storage
of water prior to treatment, (iii) the treatment of
water and all activities pertaining thereto, (iv) the
storage of water at water treatment plants, and (v) the
low pressure puwping of treated water for the purpose
of sending the water from a water treatment plant
through any water transmission main leading therefrom,
divided by the sum of {x) the number of thousands of
gallons of treated water delivered during such month
by all high pressure pumps included in the facilities
described in sub-section (b) of this Section and
(y) the number of thousands of gallons of water
produced and treated during such month through the
facilities described in this sub-section (a) for
delivery to customers through facilities other than
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those described in said sub-section (b) of this Section,
(b) the amount of all operating and maintenance expenses
experienced by the Department during such month in
connection with the operation of all property, real
and personal, used or held for use for (i) the high
pressure pumping of treated water for the purpose
of sending the water from a water treatment plant
through any water transmission main leading therefrom,
(ii) the transmission of such treated water at high
pressure from water treatment plants to the water
distribution system of the Department, and (iii) the
transmission of treated water at low pressure from
water treatment plants, the storage of such water
prior to high pressure pumping, and the high pressure
pumping of such water for delivery to the water distri-
bution system of the Department, divided by the number
of thousands of gallons of treated water delivered
during such month by all high pressure pumps included
in such facilities,
(c) a charge for interest and depreciation in an amount
equal to two-thirds of one per cent (2/3%) of the
investment of the Department as of the last day of
such month in (i) all facilities described in sub-
section (a) of this Section and (ii) all extensions,
renewals, improvements and replacements of such
facilities carried on the books of the Department
as "Work in Progress - Construction It, divided by the
sum of (x) the number of thousands of gallons of
treated water delivered during such month by all
high pressure pumps included in the facilities
described in sub-section (b) of this Section and
(y) the number of thousands of gallons of water
produced and treated during such month through the
facilities described in sub-section (a) of this
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Section for delivery to customers through facilities
other than those described in sub=section (b) of this
Section, it being agreed that the amount of the in-
vestment of the Department in all facilities described
in sub-section (a) of this Section was $a,077,429c85
as of March 31, 1957,
(d) a charge for interest and depreciation in an amount
equal to two=thirds of one per cent (2/3%) of the
investment of the Department as of the last day of
such month in (i) all facilities described in sub-
section (b) of this Section and (il) all extensions,
renewals, improvements and replacements of such
facilities carried on the books of the Department
as "Work in Progress-Construction", divided by the
number of thousands of gallons of treated water
delivered during such month by all high pressure
pumps included in such facilities, it being agreed
that the amount of the investment of the Department
in all facilities described in sub=section (b) of this
Section was $5,521,842035 as of March 31, 1957, and
(e) the amount of $0002 (2 cents) as the value of the
services rendered to Miami Beach by the Department
during such month in the partial use of the Depart-
ment~s distribution system for delivery of water
to Miami Beach, in the readiness of the Department
to meet peak demands imposed by Miami Beach, in the
operation, maintenance and reading of the meters
through which Miami Beach is supplied, and for other
services not reflected by the partial rates developed
under sub=sections (a), (b), (c) and (ct) of this
Sectiono
In the development of the partial rate under sub=sections
(a), (bY, (cl and (d) of this Section, every main having as its
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primary purpose the carrying of water under high pressure from a
water treatment plant to the water distribution system within
the corporate limits of the City of Miami, shall be considered to
be a part of the Department's water transmission system between
such water treatment plant and the point where such main shall
first cross a corporate boundary of the City of Miami, and from
such point to all other points within the corporate limits of
the City of Miami such main shall be considered to be a part
of the Department~s water distribution systemo It is understood
and agreed 'that each lowc~,pressure main is a transmission main,
from its point of origin at the water treatment plant to its
termination at a high=.pressure pumping station wherever located.
Because the amounts of operating and maintenance expenses
and of capital invested for each month during which service is
rendered hereunder can not be definitely ascertained by the
Department until about the middle of the following month, it
will be necessary (i) to use, for the preparation of the monthly
bill for service rendered by the Department to Miami Beach here-
under, an initial rate developed through the use of the amounts
of operating and maintenance expenses and of capital invested
for the month immediately preceding the month during which such
service is rendered, and then (ii) to show on the next monthly
bill the amount of adjustment required to give full effect to
all provisions of sub-sections (a) to (e), both inclusive, of
this Sectiono As soon as practicable after the close of each
month during which service is rendered to Miami Beach hereunder,
the Department shall prepare and submit to Miami Beach a statement
showing the development of said initial rate and the amount of
said adjustment, and Miami Beach shall have access to all ac-
counting and engineering records and data employed by the
Department in the pre~aration of each such statemento The
amount shown by each such statement as due to the Department
for service rendered hereunder shall be paid by Miami Beach
within ten (10) days of its receipt of such statemento
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In each such statement all operating and maintenance expenses
chargeable against the rendition of service hereunder shall be set
forth in substantial conformity with the Uniform System of Accounts
for Water Utilities prescribed by the National Association of Rail=
road and Utilities Commissioners, with respect to appropriate sub-
accounts included in the following entitled accounts:
10 Source of Supply Expenses
110 Power and Pumping Expenses
1rIo Purification Expenses
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T'ransmission
Distribution Expens s
VIIo Administrative and General Expenses
of the "Operating Expense Accounts" shown on pages 117 to 120,
inclusive, of the 1939 publication of said system of accounts, it
being understood, however, that none of the Distribution Expenses
which are described in said account IVo are to be considered as
being applicable to the service rendered hereundero For the
purpose of ascertaining the amount of administrative and general
expenses to be included in the operating and maintenance expenses
described in sub=sections (a) and (b) hereof, the Department shall
at the end of each departmental fiscal year determine what per=
centage of the total expenses, excluding administrative and general
expenses incurred by the Department in the operation of its water-
works system during such fiscal year, was attributable to the
operations described in said sub-sections; shall apply such
percentage each month during the ensuing fiscal year to all
administrative and general expenses incurred by the Department
during such month in the operation of its waterworks system, and
shall include the amount thus obtained in the operating and mainte~
nance expenses for such month, as described in said sub=sections
(a) and (b) hereof, allocating said amount between said sub=sections
in proportion to the direct expenses included thereino And in
each such statement all amounts used for the determination of the
charge for interest and depreciation which is to be included in
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said rate shall be set forth in substantial conformity with said
system of accounts with respect to appropriate accounts included
in the "Utility Plant Accounts" shown on pages 59 and 60 of said
1939 publication thereofo In calculating the amounts to be used
for the determin.ation of the charge for interest and depreciation,
there shall be deducted the full book cost of property which has
been retired from serviceo
SECTION VIo
~Iax:imutu.HourJL12.~P1~l}.do Miami Beach shall take water delivered
hereund2r &,( a rate as nearly uniform as practicable t,hroughout
each 24=hour period during December, January, February, March and
April of each winter season and at all such other times when the
daily quantity of water delivered hereunder shall exceed 80 per
cent of the average daily quantity delivered hereunder during
the preceding winter seasono The Department shall have the right
to make such tests as it shall deem to be necessary, and at such
times as it shall deem to be appropriate, to determine to what
extent the maximum 60,-,mi.nute sustained demand imposed upon the
facilities of the Department by the requirements of Miami Beach
hereunder between the hours of 8~OO Ao M. and 9:00 Po Mo is
exceeding the average hourly demand, based upon the 24=hour day,
for and during the same montho Such tests shall apply to each
of the five (5) winter months set forth above and to any other
month in which. the average hourly demand is equal to or greater
than the average hourly demand for said five (5) winter months,
considered collectivelyo For the purpose of making each such
test and of ascertaining and utilizing the result thereof to give
effect to the provisions of this Section, the Department shall
use a recording flow meter installed at each of the several points
of delivery provided for in Section III hereofo In the event that
the maximum 60=minute sustained demand between the hours of g~OO Ao Mo
and 9:00 Po Mo, as shown simultaneously by all of such recording
flow meters considered collectively, shall exceed 160 per cent of
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the average hourly demand, based upon the 24-hour day, for and
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during the same month, the Department shall have the right to in=
crease the rate per thousand (1,000) gallons of water, developed
in accordance with the provisions of Section V hereof, for all
water delivered hereunder during the month in which such tests
are made, by 1 per cent of said rate for each 4 per cent or major
fraction thereof by which said maximum 60-minute sustained demand
shall exceed 150 per cent of said average hourly demando No increase
in rate provided for in this Section shall be applied during any
period of time when any of the transmission, storage or pumping
facilities of hla~i Beach are not available for service due to
reasons beyond the control of Miami Beach.
SECTION VII.
Rates to be charged by Miami Beach. Miami Beach shall establish,
impose, maintain and collect, or shall cause to be established,
imposed, maintained and collected, at all times throughout the
effective period hereof such rates and charges for water sold
by it as will enable it to pay in full all amounts to which the
Department shall be entitled hereunder.
SECTION VIII.
Effective Period of Contracto This contract shall be and remain
in full force and effect for and during a period of thirty (30)
years from and after June 28, 1959, which is the date of termi-
nation of the effective period of the contract under which the
Department is now rendering water service to Miami Beach; provided,
however, that this contract may be terminated at any time by oper=
ation of law or by mutual consent and agreement of the parties
heretoo
SECTION IXo
Contract Binding upon Successorso This contract shall inure to
and be binding upon the successors of each of the parties hereto;
provided, however, that in the event that, at any time during the
effective period hereof, Miami Beach shall sell a portion of its
water distribution system, the purchaser thereof shall acquire
no rights of any kind hereunder unless the Department shall agree
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thereto in writing prior to the consummation of such sale, but
all provisions of this contract shall continue to be in full
force and effect and binding upon both parties hereto with
respect to all portions of the water distribution system of
Miami Beach not covered by such saleo
IN WITNESS WHEREOF, the parties hereto have caused this
instrument and an exact duplicate hereof to be executed in their
names and their corporate seals affixed hereto and to said
duplicate by their respective officers thereunto duly authorized,
all as uf the day and year hereinbefore first above writteno
Witnesses as to the
Department of Water and
~7j~ t~i;;;tiami
~ttJ. ~>er ~
DEPARTMENT OF WATER AND SEWERS
OF THE CITY OF MIAMI
A
By .
APPROVED as to form and
f.r..:...ctness this ~CJ! day of
, 1957
APPROVED as to form,a~~
correctness this;2~f~ay of
57
the""De:-
partment f Water and Sewers
of the City of Miami
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