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Home My WebLink AboutAGREEMENT BETWEEN AUGUSTA UTILITIES DEPARTMENT AND THE AUGUSTA CANAL AUTHORITY FOR WATER DELIVERY THROUGH THE AUGUSTA CANAL 9 1 y July 17, 2018 AGREEMENT FOR DELIVERY OF WATER THROUGH THE AUGUSTA CANAL 1.. THIS AGREEMENT made and entered into this day of July J J , 2018, by and between AUGUSTA, GEORGIA, a political subdivision of the State of Georgia, hereinafter referred to as "Grantor", and AUGUSTA CANAL AUTHORITY a public body corporate and politic of the State of Georgia, hereinafter referred to as"Grantee"; WITNESSETH : WHEREAS, the Grantor owns and operates the Augusta Canal, the Headgates, and the dam at the head of said Canal and has done so since 1846,and: WHEREAS, Grantee operates hydroelectric plants at Enterprise Mill (FERC # 2935), King Mill (FERC#9988) and Sibley Mill (FERC#5044) located adjacent to the aforesaid Canal and desires to enter into an agreement with the Grantor whereby Grantor agrees to supply certain amounts of water to Grantee through said Canal, and; WHEREAS, the Augusta-Richmond County Code provides certain terms, conditions, restrictions and limitations relating to the use of the water channeled through the aforesaid Canal;,and; WHEREAS, the parties desire that additional terms, conditions and restrictions relating to the use of this water be set forth. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: SECTION I.GRANT OF RIGHT;TERM. Grantor herein does hereby grant and lease to the Grantee,the right of using and deriving water power from water channeled through the Augusta Dam and Canal for a ten year period. This agreement shall commence on the date of approval by the Augusta Georgia Board of Commissioners,and shall be in accordance with the following terms, conditions, restrictions and limitations. This agreement shall automatically renew for another ten year period after the initial expiration unless terminated in writing by either party with a twenty-four month notice. SECTION II. BULKHEADS: Grantee shall draw water from the Canal to Grantee's operations through a bulkhead. All bulkheads hereafter constructed or all existing bulkheads hereafter repaired by the Grantee shall be constructed or repaired in accordance with plans approved in advance by the Augusta Utilities Page 1 of 5 Department ("AUD"). Grantee shall have on site, at all times during which a bulkhead is being constructed or work is being performed on a bulkhead, a qualified inspector who has been approved by AUD. AUD shall have the right to inspect any such work performed under this section at any time deemed necessary. SECTION III. INDEMNITY BOND: Prior to commencing any work on the Canal or any appurtenances thereto, Grantee shall execute in favor of Grantor, an indemnity bond in an amount and on a form approved by Grantor's General Counsel. Said bond shall by its terms and conditions agree to indemnify and hold safe and harmless Grantor against any loss or damage to any person or property occasioned by such work. SECTION IV. BUILDING OR STRUCTURES ALONG CANAL: Grantee shall not erect any building or other fixture of any type or description on the land immediately adjacent to the first level of the Canal without prior approval of the AUD. Provided, however, nothing herein shall prevent the maintenance or repair of all existing buildings or fixtures.Any and all pipes or other means of conveying water from the Grantee's bulkhead shall be constructed in a good and workmanlike manner free of all leaks and kept in good repair by the Grantee. Additionally, Grantee agrees to keep all pipes or other methods of conveyance of said water from the Grantee's bulkhead to Grantee's turbines free of leaks and in good repair and in the event any leaks should occur in any of the structures through which water is conveyed to Grantee, Grantee shall immediately cease obtaining or conveying any water from the Canal until said leaks are repaired. SECTION V. TAIL RACES: All Intakes and tail races conveying water to and from Grantee's turbines shall be maintained by Grantee. Grantee shall keep the intakes and tail races maintained and cleaned such that no more water than is allocated in Section VII to and necessary for Grantee shall be used. AUD shall have the right to inspect all tail races as it deems necessary in order to ensure compliance with this section. SECTION VI. RIGHT OF ENTRY FOR INSPECTION: The Grantee grants unto Grantor the right to enter at any and all times upon Grantee's premises for the purpose of inspecting the bulkhead,forbays,flumes,turbines, water gates, intakes,tail races and each and every other structure connected with the use of water from the Canal and conveyance of said water to the Grantee's premises and from the Canal. SECTION VII. DETERMINATION OF THE AMOUNT OF WATER USED: The amount of power allocated by the Grantor to the Grantee shall be as follows for each location: 1. Sibley Mill: 3,832 HP and 1,024 cubic feet per second (CFS). 2. King Mill: 3,300 HP and 881 cubic feet per second (CFS). Page 2 of 5 3. Enterprise Mill: 1,906 HP and 560 cubic feet per second (CFS). SECTION VIII.CONSTRUCTION OF GRANT AND MAINTENANCE OF DAM AND CANAL: The grant of power made by the Grantor herein is subject to all prior grants made by the Grantor and to the natural and providential changes in the Savannah River and to all other reservations as provided for herein. The Grantor does not intend to, nor does the Grantor grant anything beyond the capabilities of the Dam or the head of the Canal, both of which the Grantor herein agrees to maintain. SECTION IX. RESERVATION OF WATER FOR USE BY THE GRANTOR: The Grantor hereby reserves for the use of the Grantor enough water from the first level of the Canal to drive the pumps of the Grantor's Raw Water Pumping Station and to supply the reservoir of the Waterworks with water at all times. These rights shall have precedence over all the grants of water made by the Grantor on the first level of such Canal. SECTION X.RIGHT OF GRANTOR TO CAUSE SHUTDOWN OR CURTAILMENT: Grantor reserves the right to cause a shutdown or curtailment of Grantee's access to water from the Canal as necessary for repairs or when there is insufficient water in the Savannah River to meet the demands of the Grantee and the Grantor. On such occasions the water necessary for the waterworks operations shall take precedence over the Grantee's needs. The Grantor shall provide the Grantee notice of such shutdown or curtailment with as much advance notice as possible in coordination with the Grantee. SECTION Xl.GRANTEE DOWNTIME: Grantor recognizes that the Grantee may encounter certain periods of downtime due to maintenance of the hydro facilities during the term of this Agreement which will reduce the amount of water needed by the Grantee as provided in Section VII. On such occasions the Grantee will promptly notify AUD of such reduction in water needs of the Grantee so the AUD can make the necessary adjustments to the gates at the Headgates to reduce the flow into the Canal from the Savannah River. SECTION XII. INSPECTION OF FACILITIES AND AMOUNT OF WATER USED: The Grantor is hereby granted the right to inspect all of the facilities of the Grantee used in connection with the taking of water by Grantee from the Canal and to prevent, by any lawful means,the Grantee from using any facility that is capable of drawing or discharging more water than Grantee is entitled to draw under this grant. No increase in the amount of water used is to be permitted to Grantee pursuant to the terms of this agreement and any such contemplated increase must be negotiated with the Grantor. SECTION XIII. EXPLOSIVES; NUISANCES: No part of the premises bordering the Canal shall be used for the storage or manufacture of explosive fluids, mixtures or substances of any kind,or for any purpose that shall be a nuisance. Page 3 of 5 SECTION XIV.CLEARANCE OF OBSTRUCTIONS AND REPAIRS OF THE CANAL ETC: Notwithstanding any provisions herein to the contrary, the Grantor hereby reserves the right at any time to draw as much water as necessary from the Canal when Grantor in its sole discretion deems it necessary to clear out any obstructions in the Canal, to repair or improve any part of the Canal, or at any other time or for any other purpose when Grantor deems it necessary or in its best interest or in the best interest of the Canal to draw said water out, and Grantor shall not be liable for any damages to the Grantee for drawing water out of the Canal as provided for above. Grantor shall provide Grantee no less than ten (10) days' notice should it intend to exercise the right reserved in this section, except in the case of emergency. SECTION XV. KEEPING CANAL SUPPLIED WITH WATER: Except as otherwise herein provided the Grantor shall keep the Canal supplied with water in a quantity sufficient to supply the Grantee with all the water granted to the Grantee by Grantor, so far as the water in the Savannah River above the Dam will fill the Canal, subject to any limitations or requirements by the Federal Energy Regulatory Commission. SECTION XVI. RESTRICTION ON USE: Any power generated by Grantee pursuant to the terms and conditions of this agreement shall be generated for use in connection with Grantee's business operations located at Enterprise Mill, 1450 Greene Street, King Mill, 1697 Broad Street and Sibley Mill, 1717 Goodrich Street, Augusta, Georgia. However, nothing herein shall prohibit Grantee from selling excess power to the Georgia Power Company or other electric utility company. SECTION XVII.VENUE: All claims, disputes and other matters in question between the parties hereto arising out of or relating to this Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia. Grantee, by executing this Agreement, specifically consents to venue in Richmond County, Georgia and waives any right to contest venue in the Superior Court of Richmond County. SECTION XVIII.TERMINATION: This agreement may be terminated by either party hereto upon twenty-four (24) months written notice given to the other party. [SIGNATURES ON FOLLOWING PAGE] Page 4 of 5 • ,, WHEREFORE,the parties have set their hands and seals as of the date first above written. AUGUSTA,GEORGIA k i4 ' AgipAs s i f ayor J �• �.. r . � z +♦iiAr` 14)r0e I's t 4g////1¢ Att*st4 ?riFt:' • 9 v d ` ��" � '�8. - I AUGUSTA CANAL AUTHORITY BY ' As its Chairman Sworn to and subscribed before Me this ori qday of July, 2018 l\ lAi.il�►ta- NOTAR PUCLIC COMMISSION EXPIRES Margaret M.Harrison Notary Public Richmond County,Georgia My Commission Expires 06/10/2022 Page 5 of 5