Toccoa approves an agreement to sell water to the city of Demorest.
City commissioners unanimously approved the agreement at their meeting Monday.
Toccoa Mayor David Austin said the agreement with Demorest actually replaces an agreement the city had in place previously with Habersham County.
“We have had an agreement with Habersham County,” said Austin. “They have sold their system to the city of Demorest. That is why this has come up.”
Under the agreement with Demorest, the city of Toccoa agrees to sell Demorest up to 1 million gallons of water per day, on a monthly average.
The cost of that for the first year is $2.40 per 1000 gallons and the city can adjust adjust the rate to Demorest annually based on changes in the Consumer Price Index.
Regardless of how much water Demorest purchases, Demorest agrees to pay the city of Toccoa a minimum monthly payment of $3,600.
The agreement is for 30 years, split into a 20-year term and two automatically renewing five-year terms. The term starts in 2006, retroactive to the original agreement with Habersham County.
Under the agreement, it can be terminated after 15 years with a five-year written notice by either party or by mutual consent of both parties. Then after the 20-year term and during the two 5-year terms, either Toccoa or Demorest may terminate the agreement upon one year written notice or by mutual consent.