Title
Proposed Amendment No. 4 to Water Service Contract with City of Sylvan Lake
Body
Agenda of: August 24, 2022
Item No.: 2022-355
Amount: Revenue Contract
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: August 24, 2022
RE: Proposed Amendment No. 4 to Water Service Contract with City of Sylvan Lake
MOTION
Upon recommendation of Randal Brown, General Counsel, the Board of Directors (“Board”) of the Great Lakes Water Authority (“GLWA”), authorizes the Chief Executive Officer (“CEO”) to execute Amendment No. 4 to the 30-year water service contract with City of Sylvan Lake; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On 7/13/2022, the Sylvan Lake (“Member Partner”) City Council agreed to the terms of Amendment No. 4 (“Amendment”) to its water service contract with GLWA. This Amendment is one of several regularly occurring amendments required by the terms of GLWA’s model 30-year water service contract.
This Amendment incorporates the following changes:
Section 5.06 is deleted. Section 5.06 was known as the “minimum take or pay” clause. Previously, on January 26, 2022, this Honorable Body agreed to the removal of this clause from all member partner contracts because the 60% fixed cost component of the GLWA charge structure eliminates its need.
Exhibit B, attached, is affirmed and/or modified regarding (a) the pressure range at directly metered locations for calendar years 2023 to 2026, (b) the maximum day and peak hour values for calendar years 2023 to 2026, and (c) the projected annual volume for system planning purposes for fiscal years 2024 to 2027.
JUSTIFICATION
Approval of this Amendment provides a mutually beneficial, stable, long-term framework for interactions between GLWA and the Member Partner and incorporates annual system planning volumes, pressures, and maximum day and peak hour values that better reflect future Member Partner usage.
BUDGET IMPACT
The revenues expected to result from this Amendment will be reflected in the FY 2023-2024 schedule of charges.
COMMITTEE REVIEW
This matter is being presented to the Legal Committee for consideration at its meeting on August 24, 2022.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.