Water from Milford Reservoir
AGREEMENT TO ORGANIZE
PUBLIC WHOLESALE WATER SUPPLY DISTRICT NO.
THIS AGREEMENT
of Mav-L--)" 1988,
following public agencies
/~
is entered into this ~-
by and between each and all of
of the State of Kansas:
day
the
City of Abilene, Kansas;
City of Bel Aire, Kansas;
City of Chapman, Kansas;
City of Halstead, Kansas;
City of Hesston, Kansas;
City of Hutchinson, Kansas;
City of Lindsborg, Kansas;
City of McPherson, Kansas;
City of Moundridge, Kansas;
City of Newton, Kansas;
City of Park City, Kansas;
City of Salina, Kansas;
City of Sedgwick, Kansas;
City of Valley Center, Kansas; and
City of Wichita, Kansas.
WHEREAS, the Act provides that in order to" permi t
certain public agencies to make the most efficient use of their
powers relating to public water supply on a basis of mutual
advantage authorizes such public agencies to provide for the
establishment of a quasi-municipal corporation, known as a
public wholesale water supply district; and
WHEREAS, the function of the public wholesale water
supply district shall be to secure a source of water on a scale
larger than is feasible for such public agencies, and others,
acting alone, and to sell such water at wholesale to such
agencies and others.
THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN EACH AND
ALL OF THE ABOVE NAMED MEMBERS, AS FOLLOWS:
DEFINITIONS
"A Cities" shall mean the cities of Abilene, Chapman,
Hesston, Lindsborg and Moundridge, in the State of Kansas.
"Act" shall mean K.S.A. 19-3545 et seq., as amended.
"Agreement" shall mean this Agreement to organize
Public Wholesale Water Supply District No. ___'
"B Cities" shall mean the cities of
Halstead, Park City, Valley Center and Sedgwick,
of Kansas.
Bel Aire,
in the State
"District" shall mean Public Whole Water Supply
District No. ___, authorized pursuant to this Agreement.
"Governing Body" shall mean the governing body of the
District authorized and elected in accordance with Article VII
of the Agreement.
"Members" shall mean those cities referenced in the
preamble to this Agreement as may be modified by members who
wi thdraw or Publ ic Agencies who are added in acco rdance wi th
Article VII hereof.
"Public Agency" or "Public Agencies" shall mean public
agencies, as said term is defined in the Act.
"Representative" shall mean the Representative to the
governing body elected or appointed by the members 1n
accordance with Article VII hereof.
ARTICLE I
Purpose of Agreement
The purpose of this Agreement
wholesale water supply district under
the ACT.
1S to organize a public
and in accordance wi th
ARTICLE II
Representations of Members
Each Member hereby represents that:
2.1. It is a Public Agency.
system.
2.2. It currently owns and operates a municipal water
2.3. Its governing body, by appropriate
authorized the execution of this Agreement.
action,
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ARTICLE III
Creation
3.1. Pursuant to provisions of the Act, the Members
hereby organize a public wholesale water supply district.
3.2. The name of the District shall be the corporate
name given to the District by the Kansas Secretary of State
pursuant to the Act.
ARTICLE IV
Duration
The duration
unless terminated in
Agreement.
of the District
acco rdance wi th
shall be
Article
perpetual,
IX of the
ARTICLE V
Purposes of the District
The purpose o~ the District shall be:
5.1. To secure an adequate source of water for the
Members and to sell water to the Members and others permitted
by the Act.
5.2. To transport. and distribute water to purchasers.
5.3. To allow the sharing of water sources on a larger
scale than is feasible for the Members acting separately.
5.4. To allow cooperation between Public Agencies for
the efficient use of all the Public Agencies I powers relating
to public water supplies.
5.5. To engage in any lawful act or activity for which
public wholesale water supply districts may be organized under
the Act.
ARTICLE VI
Powers
The District shall have all the powers set out in the
Act or otherwise permitted by law.
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71438
ARTICLE VII
Organization, Composition and Nature
7.1. The members of the District shall be those Public
Agencies signing this Agreement. This Agreement may be amended
to include additional Public Agencies as members by consent of
three-fourths (3/4) of the Members.
7.2. Any Member may wi thdraw from this Agreement and
the District by giving written notice to the Governing Body of
the District of its desire to withdraw, evidenced by an
ordinance of its governing body; provided, however, that if the
member requesting withdrawal shall have any unpaid assessments
to the District the withdrawal shall not be effective until
such time as the assessments have been paid in full or waived
by two-thirds (2/3) vote of the Governing Body of the
District. The withdrawing member shall not be entitled to
receive any real or personal property of the District by reason
of its withdrawal. Withdrawal of a Member shall not be deemed
to terminate or diminish any obligations that such enti ty may
have to the District pursuant to written agreements or
contracts with the District separate and apart from this
Agreement except as provided in such other agreements or
contracts.
7.3. The property and business of the District shall
be managed by the Governing Body of the District. The
Governing ,Body .shall consist of nine (9) Representatives The
Representatives shall be selected by the governing bodies of
the Members, except that the Representative fOT the A Ci ties
and B Cities shall be selected by the A Cities and B Cities,
respectively, as follows:
City of Wichita, Kansas - 3 Representatives;
City of Hutchinson, Kansas - 1 Representative;
City of McPherson, Kansas - 1 Representative;
City of Newton, Kansas - 1 Representative;
City of Salina, Kansas - 1 Representative;
A Cities - 1 Representative; and
B Cities - 1 Representative.
The term of each Representative shall be for a period of
three (3) years except that the initial term of the first
Representative for the City of McPherson, the Representative of
the B Cities and one of the Wichita Representatives shall be
for one (1) year and the initial term of the first
Representative for the A Cities, the Newton Representative, and
one of the Wichita Representatives shall be for a term of two
(2) years. After such staggered terms, the term for any
Representative to the Governing Body shall be for a period of
three (3) years. Any Representative appointed by an individual
Member may be removed at any time by the Member appointing the
Representative. Any Representative appointed by the A Cities
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or B Ci ties may be removed at any time by a maj ori ty vote of
the A Cities and B Cities, respectively. In case of a vacancy
caused by removal, death, incapacity, disqualification or
resignation, a successor Representative shall be appointed or
elected in the same manner as the original Representative was
appointed or elected and such Representative shall serve for
the remainder of the unexpired term.
7.4. The initial bylaws of the District shall be
approved by unanimous vote of the Members. Thereafter, the
bylaws and other rules and regulations' of the District may be
adopted, amended, supplemented or repealed by affirmative vote
of no less than two-thirds (2/3) vote of the Representatives to
the Governing Body.
7.5. The Governing Body of
from the Representatives a president,
and other officers in the manner
District's bylaws.
the District shall elect
a treasurer, a secretary,
and as provided in the
ARTICLE VIII
Financing and Budget
8.1. The Governing Body of the District shall
determine the methods of obtaining financing" for the District
in any manner set forth in the Act or otherwise permitted by
law which is not inconsistent with this Agreement.
8.2. Any such financing shall be secured by
contractual agreements between the District and the Members,
which agreements shall be paid solely and only from the
revenues produced from a Member's water system and shall not be
payable from any funds raised by taxation.
8.3. The Governing Body shall conduct one or more
meetings of the Members annually to discuss the District's
budget for the ensuing year. The budget shall- be adopted by
vote of two-thirds (2/3) of the Members.
8.4. In addition to the matters referred to in
subparagraphs I and 2 hereof, the District shall be authorized
to assess Member cities for the repayment' of preliminary
engineering, financial and legal services as needed to
determine the advisabi Ii ty of proceeding wi th acquisi tion or
construction of a water supply system and/or the repayment of
no-fund warrants issued in accordance with the Act. Such
assessments may be paid from funds raised by taxation.
8.5 The District shall be subject to the budget and
cash' basis laws of the State of Kansas and the Governing Body
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of the District shall cause an annual audit of the financial
records of the District to be made in accordance with the laws
of the State of Kansas.
ARTICLE IX
Termination and Dissolution
This Agreement and the District may be terminated and
dissolved by the written consent to such termination by at
least three-fourths (3/4) of the Members; provided that priqr
to such termination all indebtedness, warrants and other
financial obligations of the District shall have been paid in
full or there shall have been deposited in escrow with a state
or national bank located in the State of Kansas and having full
trust powers, cash or direct obligations. of the government of
the United States of America or obligations the payment of the
principal of and interest on which is uncondi tionally
guaranteed by the government of the Uni ted States of America,
in amounts sufficient, together with the interest earned on
such obligations wi thout reinvestment, to pay such
indebtedness, warrants and other financial obligations in full
when due. Thereafter, the Governing Body of the District shall
dissolve the District, liquidate its properties, and distribute
the net proceeds to the Members in a manner to be determined by
it pursuant to law, taking into account, in such manner as the
Governing Body of the District in its discretion deems
appropriate, the relative contributions of cash and other
property to the District and the relative water purchases of
each of the Members, or in the event that the Governing Body of
the District is unable to decide as to the manner in which the
District's properties shall be liquidated and the net proceeds
distributed it shall be determined by a court of appropriate
jurisdiction.
ARTICLE X
District Property
Title to all real and personal property of the
District shall be acquired, held and disposed of in the name of
the District unless otherwise required by law or by the terms
of ~ gift or grant.
ARTICLE XI
Powers of Governinq Body
The Governing Body of the District shall have all
powers designated in the Act, in this Agreement, and in the
District's bylaws. In the event of a conflict amoung their
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respecti ve provisions, the Act shall control over both this
Agreement and the bylaws and this Agreement shall control over
the bylaws.
ARTICLE XII
Amendments
This Agreement may be amended or supplemented in whole
or in part by consent of three-fourths (3/4) of the Members and
approval of the Attorney General of the State of Kansas, filing
of such amendment wi th the Register of Deeds of each county
where a Member is located, and filing with the Secretary of
State.
ARTICLE XIII
Effective Date
This Agreement shall take effect upon its
authorized execution by each Member, its approval by
Attorney General of the State of Kansas, its fi ling wi th
Register of Deeds of each county where a Member is located,
its filing with the Kansas Secretary of State.
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duly
the
the
and
IN WITNESS WHEREOF, the Members have each executed
this Agreement as of the date first above written.
CITY OF SALINA, KANSAS
(Seal)
~~
ATTEST:
~~~~
?~. ------
/ CIty lerk
ACKNOWLEDGMENT
STATE OF KANSAS
)
) SSe
)
COUNTY OF SALINE
This instrument
of March
and Robert K. Bil es
Kansas, a municipal
was acknowledged before me
19 88, by Stephen c. Ryan
, City Clerk, of the City
corporation.
on ~ day
Mayo r ,
of Salina,
(Seal)
~L~
Notary Public
My Commission Expires:
." ~ M. E. ABBOTT
~ NOTARV PUBLIC
IAV APPT STATE OF KANSAS
. EXPIRes APRIL 2. ,,.
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