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2 <br /> Supply Contract(the"1991 Contract„). Except as otherwise set forth in this Contract, other <br /> agreements and contracts between the Parties remain in effect. <br /> NOW, THEREFORE,for the mutual benefits to be derived,the parties agree as follows: <br /> 1. Delivery of Water. Everett hereby agrees to deliver water to Tulalip and Tulalip <br /> agrees to pay Everett for the delivery and treatment of water. <br /> 2. Point of Delivery. Everett shall deliver water to Tulalip at agreed connection <br /> point along Everett's Transmission Pipeline at Everett's master meter system on the south side of- <br /> Union Slough("Point of Delivery„). The actual point of delivery at the connection point shall be <br /> deemed to be the upstream flange of the valve downstream of the master meter and check valve. <br /> 3. Quantity of Water. Everett and Tulalip agree that each have made,and will <br /> continue to make,significant capital investments in water delivery facilities which are <br /> interdependent and that coordinated planning will be required throughout the term of this <br /> contract to maximize public benefits and minimize costs.Everett shall not be responsible for <br /> storage for Tulalip's reservation system storage except as it relates to Everett's existing storage at <br /> Lake Chaplain and uninterrupted delivery of water at the Point of Delivery in accordance with <br /> the 2005 agreement and Sections 6 and 10 of this contract. It is understood that Tulalip and <br /> consumers of water from Tulalip may reach an average annual demand of 30.0 million gallons <br /> per day(MGD)and peak period demand of 36.0 million gallons per day(MGD)before the <br /> expiration of this Contract.Estimated average daily demands and peak day demands of Tulalip <br /> and its major customers for the near future are shown on Exhibit A attached hereto.Everett's <br /> facilities have, or will have in the future,the capacity to deliver water for Tulalip's water quantity <br /> demands as shown in Exhibit A or updated projections to be provided by the Tulalips at least <br /> every five years after the effective date of this contract. Once the Tulalip Water Pipeline is <br /> connected to the City's transmission pipelines,the maximum amount of water to be delivered by <br /> the City to the Tulalip under this Contract will in no case exceed 30 MGD average annual rate or <br /> 36 MGD during peak periods. <br /> Nothing herein,however, shall be construed as obligating Tulalip to take or purchase any <br /> minimum quantity of water from Everett at any time. <br /> 4. Quality of Water. Everett shall be responsible for meeting state and federal <br /> standards for safe,high-quality drinking water at the point of delivery.All water supplied by <br /> Everett for use or sale by Tulalip shall be delivered upon the express condition that after it has <br /> passed the point of delivery the same is under the exclusive control of Tulalip,and Everett shall <br /> not be liable for any damages or loss resulting from degradation of water quality which may <br /> occur beyond said point.Everett shall not be responsible for changes in water quality or <br /> operating problems which may result from mixing of different sources of water in Tulalip's <br /> system or in systems served by Tulalip. Tulalip shall provide means to assure that water will not <br /> backflow into the Everett water system. <br /> 2 <br /> 69 <br />