Title
Proposed Amendment No. 5 to Water Service Contract with City of Ferndale
Body
Agenda of: August 24, 2022
Item No.: 2022-361
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. 5 to Water Service Contract with City of Ferndale
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. 5 to the 30-year water service contract with City of Ferndale; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On 7/11/2022, the Ferndale ("Member Partner") City Council agreed to the terms of Amendment No. 5 ("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 A is modified to update certain information which may include the Member Partner's service area boundaries, meter locations, emergency connections, the list of retail customers outside the Member Partner's corporate limits, and each party's respective ownership and maintenance responsibilities. Exhibit A is not attached for homeland security reasons.
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...
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