THIS AGREEMENT, made and entered into this 28th day of November, 1983, and executed in duplicate originals, each constituting an original, by and between the CITY OF OLNEY, Richland County, Illinois, herein referred to as the “City,” and the VILLAGE OF NOBLE, Richland County, Illinois, herein referred to as the “Village,” both Municipal Corporations of the State of Illinois;




          WHEREAS, the Village is in need of a water supply and desires to purchase water from the City; and


          WHEREAS, the City owns and operates a waterworks system and is willing to furnish a supply of water to the Village; and


          WHEREAS, the Village plans to make necessary improvements to its water system through a grant from the Community Development Assistance Program from the State of Illinois, Department of Commerce and Community Affairs, by constructing a water transmission line to the Village from and to be connected to the City’s water distribution system; and


          WHEREAS, Chapter 24, Sections 11-124-1 and 11-126-1 of the Illinois Revised Statutes, (1983) authorize and empower municipalities to contract with each other for the supply of water.


          NOW, THEREFORE, the parties do covenant and agree as follows:


          1.       The City agrees to furnish water from its existing municipal water distribution system to the Village for use and resale by the Village for a period of forty (40) years from the date hereof.


          2.       All water delivered under this Agreement shall be taken from the same source of supply and shall be of like potability and purity as that furnished to the inhabitants of the City and shall, at the point of delivery to the Village, meet the standards of the United States Public Health Services for drinking water.

3.       The point of delivery of water by the City to the Village shall be at the point of interconnection of the City’s water distribution system and the connection thereto by the Village’s water transmission line located, or to be hereafter located, as follows:


          4.       The City agrees to furnish the Village such water as required by the Village up to 150,000 gallons of water per day and the City may, but shall not be required to, furnish such additional amounts of water in excess of 150,000 gallons per day to the Village.  In the event the average daily usage of water by the Village under this Agreement shall, for a ninety (90) day period, exceed the maximum gallons required to be furnished by the City, the parties agree that the maximum gallons of water to be furnished by the City may be increased, considering the requirements of the Village and the water supplies and treatment capabilities of the City.


          5.       For water delivered to the Village under this Agreement, the Village agrees to pay the City therefor Fifteen Cents ($0.15) per 100 gallons of water pursuant to the City’s Ordinance No. 83-48, provided, however, it is mutually agreed that the duration of this Agreement is such that the passage of time will require changes in the charges to be made for the use of water hereunder, in order to offset an increase in the cost of producing and treating the water by the City.  The City, therefore, may modify the schedules of charges for use of water hereunder from time to time, in its discretion, provided:


                   a.       The rates for water to be charged to the Village shall at all times be fair and reasonable.

                   b.       Any increase in the charges for water shall be based solely upon an increase in the cost of production and treatment of water and distribution of water to the point of delivery.

                   c.       Any rate increase to the Village will not be disproportionately greater than a rate increase to other customers of the City.

                   d.       Any modification in charges for water will become effective not earlier than three (3) months after any changed schedule of charges shall be adopted by the City.

                   e.       The City will take reasonable steps to give prior notice to the Village of the consideration by the City of any proposed changes in the water rates applicable to the Village, and further notice of the adoption by the City of changes in the water rates, applicable to the Village.

6.       At the end of each calendar year during the term of this Agreement, and prior to January 31st following the end of any calendar year, the Village agrees to provide to the City a copy of the Village’s water rate schedule applicable to the Village’s water customers.


          7.       The City shall make meter readings and mail billings for water furnished to the Village under this Agreement pursuant to the City’s established billing procedure.  The Village shall be entitled to the same discount for prompt payment of water bills as is allowed to metered customers inside the corporate limits of the City.


          8.       The Village shall not use any water meter or metering equipment for use at the point of delivery to determine the charges to the Village by the City for water supplied, which has an error in registration of more than two percent (2%) deviation under normal operating conditions.  In the event any meter or metering equipment is determined to have a deviation of more than two percent (2%) under normal operating conditions, such equipment shall be corrected or replaced at the expense of the Village.  Any meter or metering equipment with a deviation of two percent (2%) or less shall be deemed correct and accurate.  If at any time, the water meter or metering equipment for use at the point of delivery shall fail to correctly register the quantity of water used or flowing through the same in a deviation of more than two percent (2%), the amount of water for which the Village will be charged, shall be determined by taking the average of the twelve (12) preceding readings of such meter or metering equipment, excluding excessive or deficient readings.  Where such meter or meters have been installed for a lesser period than one (1) year, or where less than twelve (12) competent readings exist, such estimate may be based on a lesser number than twelve (12) readings taken preceding or subsequent to such incorrect or stopped registration.  In the event the Village shall fail, neglect or refuse for a period of thirty (30) days after being given written notice by the City of the existence of the defective meter or metering equipment, to repair or replace such equipment, then the City may charge on the next water bill a surcharge of ten percent (10%) of said water bill based upon the average of the prior readings in accordance with this paragraph.  The surcharge for subsequent bills may increase at the rate of ten percent (10%) for each month that the meter or metering equipment is not satisfactorily repaired or replaced.


          9.       All responsibility of the City for the use, transmission and distribution of water by the Village shall cease and terminate upon its delivery to the place or point of delivery hereinbefore described.  The Village, at its own expense and separate undertaking shall provide a water distribution
system from the Village and all facilities necessary therefor from the point of delivery for the Village to receive and properly utilize the water furnished and delivered by the City.  When the transmission line from the place or point of delivery by the City is ready for pressure test or sterilization, the Village shall notify the City in order for a City representative to be present at such test.


          10.     The City does not guarantee that the supply of water to be delivered under this Agreement will be at all times constant, and it is agreed that temporary cessation of delivery of water hereunder at any time caused by act of God, fires, strikes, casualties, accidents, necessary maintenance work, breakdowns of or injuries to machinery or power therefor, civil or military authority, insurrection, riot, or any cause beyond the control of the City shall not constitute a breach of this Agreement by the City and the City shall not be liable to the Village for any damage resulting from such cessation of delivery of water.  In addition, in the event it becomes necessary for the City to repair any part of either waterworks system whereby it becomes necessary to temporarily discontinue the delivery of water, the City is authorized to close any valve or valves in its water main or transmission line to or at the point of delivery as may be necessary for the protection of the said waterworks systems, or to meet the exigencies of the case.  The City does agree to use due diligence and care to provide water to the Village as herein required and to use all due diligence to repair the City waterworks system.


          11.     In the event of an extended shortage of water or the supply of water available to the City is otherwise diminished over an extended period of time, the supply of water to be delivered to the Village shall be reduced or diminished in the same ratio or proportion as the supply to the City’s consumers is reduced or diminished.


          12.     In the event the Village shall, at any time, be in default of any of its agreements herein contained, or shall fail to make payment for the water furnished by the City to the Village, and if any such default or nonpayment shall continue for a period of thirty (30) days, then, and in that case, this Agreement may be terminated at the option of the City by giving the Village ten (10) days prior written notice of the City’s intention to terminate this Agreement, and unless such defaults are corrected during such ten (10) day period, the City may discontinue supplying water to the Village as herein provided.  The exercise of the option to discontinue this Agreement by the City, the giving of the ten (10) days
notice of the City’s intent and the declaration of the termination of this contract, shall be effective only and after and upon a resolution to that effect adopted by the City Council of the City.


          13.     The City, its agents and employees, shall at all times have the right to inspect the water transmission line of the Village and its distribution lines and equipment to insure compliance by the Village, with all state and federal governmental agencies’ rules and regulations, and to further insure that no cross connections are made between the Village’s transmission and distribution system and the system of the City, except at the point of delivery as herein defined.


          14.     This Agreement shall extend to and be binding upon the successors and assigns of parties hereto.


          IN WITNESS WHEREOF, the City of Olney, Richland County, Illinois has caused this Agreement to signed by its Mayor and its Corporate Seal to be affixed hereto and duly attested by its City Clerk, and the Village of Noble, Richland County, Illinois has caused this Agreement to be signed by its President and its Corporate Seal to be affixed hereto and duly attested by its Village Clerk on the date first above written.


                                                                   CITY OF OLNEY, RICHLAND COUNTY,

(Corp. Seal)                                                  ILLINOIS, a Municipal Corporation







City Clerk


                                                                   VILLAGE OF NOBLE, RICHLAND COUNTY,

(Corp. Seal)                                                  ILLINOIS, a Municipal Corporation


                                                                   By: /s/ Fred Prosser                             




/s/ Shirley Cox                                    

Village Clerk