Decision 2012-207 the City of Medicine
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Decision 2012-207 The City of Medicine Hat Potable Water Supply Agreement with Cypress County August 2, 2012 The Alberta Utilities Commission Decision 2012-207: The City of Medicine Hat Potable Water Supply Agreement with Cypress County Application No. 1608596 Proceeding ID No. 1978 August 2, 2012 Published by The Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: 403-592-8845 Fax: 403-592-4406 Web site: www.auc.ab.ca The Alberta Utilities Commission Calgary, Alberta The City of Medicine Hat Decision 2012-207 Potable Water Supply Agreement with Application No. 1608596 Cypress County Proceeding ID No. 1978 1. The City of Medicine Hat (Medicine Hat) filed an application with the Alberta Utilities Commission (AUC) on June 27, 2012, for approval to enter into the Dunmore Gate amending agreement pursuant to Section 30(1) of the Municipal Government Act, RSA 2000, c. M-26. The amending agreement was negotiated between Medicine Hat and Cypress County to increase the supply of potable water through the Dunmore Potable Water Gate to accommodate future growth in the Hamlets of Dunmore, Irvine and Walsh. The existing potable water agreements were originally approved by the Alberta Energy and Utilities Board in Order U2005-2391 and Order U2005-240,2 and amended in Decision 2011-004.3 The water supply agreements between Medicine Hat and Cypress County with extensions expire May 31, 2034. 2. The AUC published notice of application on the AUC website on July 3, 2012, and in the Medicine Hat News on July 9, 2012. Anyone with concerns or objections was directed to file a submission with the AUC by July 23, 2012. The AUC has processed this application without further notice as no submissions were received. 3. The Dunmore Gate amending agreement, which is attached as Appendix 1, amends the potable water agreements. This agreement allows Medicine Hat to provide an increased volume of water at the Dunmore Gate, and increases the maximum number of people that can be served by the Dunmore Potable Water Gate. 4. Medicine Hat confirmed that the water system can accommodate the increase without any impact to Medicine Hat’s customer needs. In addition, the volumes of potable water to be provided will be supplied from water licenses provided by Cypress County, which allow water to be diverted through Medicine Hat’s water system. 5. Based on the foregoing, the AUC considers that the privilege contained in the Water Supply Agreements is necessary and proper for the public convenience and properly serves the public interest. 1 Order U2005-239: City of Medicine Hat, Water Supply Agreement with Cypress County, Application No. 1395800, July 18, 2005. 2 Order U2005-240: City of Medicine Hat, Water Supply Agreement with Cypress County, Application No. 1395800, July 18, 2005. 3 Decision 2011-004: City of Medicine Hat, Water Supply Agreements with Cypress County, Application No. 1606499, January 11, 2011. AUC Decision 2012-207 (August 2, 2012) • 1 Potable Water Supply Agreement with Cypress County The City of Medicine Hat 6. Therefore, pursuant to Section 30(1) of the Municipal Government Act, the AUC hereby orders that Application No. 1608596 by Medicine Hat dated June 27, 2012, is approved, subject to the terms and conditions of the amending agreement for the Dunmore Potable Water Gate. Dated on August 2, 2012. The Alberta Utilities Commission (original signed by) Neil Jamieson Commission Member 2 • AUC Decision 2012-207 (August 2, 2012) Potable Water Supply Agreement with Cypress County The City of Medicine Hat Appendix 1 – Amending Agreement for the Dunmore Potable Water Gate (return to text) Appendix 1 - Amending Agreement for the Dunmore Potable Water Gate.pdf (consists of 21 pages) AUC Decision 2012-207 (August 2, 2012) • 3 The City of Medicine Hat Appendix 1 Potable Water Supply Agreement with Cypress County Page 1 of 21 k This Memorandum of Agreement made this 2 day of wf^ , 2012 BETWEEN: CITY OF MEDICINE HAT, a municipal corporation in the Province of Alberta ("Medicine Hat") -and- CYPRESS COUNTY, a municipal corporation in the Province of Alberta ("Cypress") AMENDING AGREEMENT FOR THE DUNMORE POTABLE WATER GATE WHEREAS: A. Medicine Hat and Cypress have entered into a Memorandum of Agreement for Supply of Potable Water dated August 4, 2005, whereby Medicine Hat agreed to supply and Cypress agreed to accept Potable Water from the Medicine Hat Potable Water System at specified Gates (including but not limited to the Dunmore Gate) for delivery into the Cypress Potable Water System for the purposes of providing Potable Water to Cypress (the "Potable Water Agreement"). B. The Potable Water Agreement was amended by the Master Agreement for Seven Persons Potable Water Gate dated August 4, 2005 between the parties to add an additional Gate for the benefit of the Hamlet of Seven Persons located within Cypress (the "Seven Persons Master Agreement"). C. Medicine Hat and Cypress also entered into an Amending Agreement for the Seven Persons Potable Water Gate dated July 13, 2010 (the "Seven Persons Gate Amending Agreement"), which amended the Seven Persons Master Agreement and under which Medicine Hat agreed to supply additional volumes of Potable Water to Cypress through the Seven Persons Gate, subject to the terms and conditions set out in the Seven Persons Gate Amending Agreement. D. Medicine Hat, Cypress and the Town of Redcliff have entered into an Intermunicipal Development Plan ("IDP") which, inter alia, addresses future subdivision and development of specified areas located within the IDP boundaries of Cypress as shown in Map "A" of the IDP (the "IDP Boundaries"). E. The IDP states that Medicine Hat will provide additional volumes of Potable Waterto Cypress for future subdivision and development within the IDP Boundaries that is in AUC Decision 2012-207 (August 2, 2012) L\csol\Shared\2008 forward\Current Files\23 7680 Dunmore Water Gate - Amendments \Dunmore Gate Amending Agreement v6 (final).doc The City of Medicine Hat Appendix 1 Potable Water Supply Agreement with Cypress County Page 2 of 21 Amending Agreement between City of Medicine Hat and Cypress County for the Dunmore Water Gate Page 2 accordance with the IDP, subject to the terms and conditions of a Gate agreement between Medicine Hat and Cypress. F. Medicine Hat and Cypress have entered into an Agreement for the Southwest Potable Water Gate dated July 13, 2010 (the "Southwest Potable Water Agreement") which amended the Potable Water Agreement to add the Southwest Gate and under which Medicine Hat agreed to supply additional volumes of Potable Water to Cypress within the IDP Boundaries, subject to the terms and conditions set out in the Southwest Potable Water Agreement. G. Medicine Hat and Cypress acknowledge that the Southwest Gate will not be constructed in the immediate future and as a result, Cypress has requested that Medicine Hat supply additional volumes of Potable Water to Cypress through the Dunmore Gate. H. Medicine Hat and Cypress desire to amend the Potable Water Agreement for the purposes of permitting additional volumes of Potable Water to be supplied from Medicine Hat to Cypress through the Dunmore Gate in accordance with the terms and conditions set out in this Agreement. NOW THEREFORE in consideration of the covenants and obligations contained in this Agreement, Medicine Hat and Cypress agree as follows: 1. Interpretation 1.1 Definitions All capitalized terms which are not expressly defined in this Amending Agreement shall have the meanings given to such terms as set out in the Potable Water Agreement. In this Agreement, including the recitals, this section and the Schedules, the following words and phrases shall have the following meanings: (a) "IDP" means the Intermunicipal Development Plan as adopted by Medicine Hat, Cypress and the Town of Redcliff. (b) "Potable Water Agreement" means the Memorandum of Agreement for the Supply of Potable Water between Medicine Hat and Cypress dated August 4, 2005, as amended. (c) "Seven Persons Master Agreement" means the Master Agreement for Seven Persons Potable Water Gate dated August 4, 2005 between the parties which added the Seven Persons Gate to the Potable Water Agreement. (d) "Seven Persons Gate Amending Agreement" means the Amending Agreement for the Seven Persons Potable Gate dated July 13, 2010 between the parties amending the terms and conditions with respect to the Seven Persons Gate set out in the Potable Water Agreement. AUC Decision 2012-207 (August 2, 2012) L:ksol\Sharedt2008 Fonvard\Current Files\23 7680 Dunmore Water Gate - Amendments\Dunmore Gate Amending Agreement v6 (final).doc The City of Medicine Hat Appendix 1 Potable Water Supply Agreement with Cypress County Page 3 of 21 Amending Agreement between City of Medicine Hat and Cypress County for the Dunmore Water Gate Page 3 (e) "Southwest Gate Agreement" means the Southwest Potable Water Gate Agreement dated July 13, 2010 between the parties which added the Southwest Gate to the Potable Water Agreement. 1.2 Headings - The headings of the Sections of this Agreement and the attached Schedules are inserted for convenience and reference only and shall not affect the meaning, interpretation or construction of this Agreement. 1.3 Schedules - The following Schedules are attached to, form part of, and are incorporated into this Agreement: Schedule "A"- Amended Terms of Supply for Delivery of Potable Water to the Dunmore Gate (to be inserted as Article 1 of Schedule "A" of the Potable Water Agreement in place of the existing Article 1). Schedule "B"- A Map identifying the Location of the Dunmore Gate (to be inserted into Schedule "B" of the Potable Water Agreement in place of the existing Map for the Dunmore Gate). Appendix "2" - Dunmore Gate Recording Table (to be inserted as Appendix "2" of the Potable Water Agreement).