City Council Agenda and Packet 2015 10 13 BUDGET

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Louisville for 50% of the total construction costs within 30 days of receipt of an itemized invoice from Louisville. 4. Interconnect Capacity. The Interconnect shall be able to transmit 2 million gallons per day to either Party without pumping. 5. Interconnect Ownership; Maintenance. The Interconnect shall be jointly owned and maintained by the Parties on an equal share basis. A maintenance schedule for the Interconnect shall be drafted prior to the Interconnect's construction completion, which schedule shall be mutually agreed upon by the Parties. Because location of the Interconnect is at Louisville's Howard Berry Water Treatment Plant, Louisville expressly grants SMDI and its employees and contractors a right of access to enter the Howard Berry Water Treatment Plant for the purpose of inspecting, maintaining and repairing the Interconnect at any time, upon 48 hours prior notice to Louisville. All repairs other than routine maintenance and replacement shall first be approved by both Parties. Costs for repair and replacement shall be borne equally by both Parties. The Party undertaking any maintenance shall provide an itemized invoice to the other Party, which shall reimburse the first Party for 50% of the total costs for the maintenance activities within 30 days of receipt of the itemized invoice. 6. Use Request. The Buyer shall request use of water from the Seller at least 24 hours in advance. The 24 -hour notification period may be waived by the Seller's Director of Public Works or designee. The Seller's approval of the provision of emergency or supplementary water to the Buyer shall not be unreasonably withheld. The Interconnect shall be used for provision of emergency or supplementary water supply with the water quantity limited by the amount needed to complete specified tasks. "Emergency water" means that water necessary to alleviate a shortage that is occurring or will imminently occur for one Party that would, if the Interconnect is not activated, result in an imminent threat to the public health, welfare, or safety of that Party. "Supplementary water" means a shortage of untreated (raw) water, inadequate capacity for treatment, or water that is needed by a Party for maintenance of its water treatment plant. The Seller, in its reasonable discretion, shall have the right to limit the flow rate, volume, the time of day water is provided, the day of the week water is provided and overall duration of water sale. 7. Interconnect Startup Fees. No startup fees for initiating use of the Interconnect shall be charged by either Party. 8. Water Quality. Treated water quality shall meet requirements set forth by the Colorado Department of Public Health and Environment ( "CDPHE "). It is the responsibility of the Seller to supply water quality meeting CDPHE standards. It is the responsibility of the Buyer to notify its customers of water quality issues, if required. 9. Metering and Rates. The Interconnect shall be designed so as to record the flow of water in either direction. The water flowing through the Interconnect shall be billed by the Seller to the Buyer at a flat rate of $3.00/1,000 gallons. This flat rate may be adjusted by the percentage change (up or down) of the Consumer Price Index for All Urban Consumers (CPI -U) in the Denver/Boulder /Greeley Area from the most recent non - seasonally adjusted data available 9