Title
Proposed Amendment No. 3 to Water Service Contract with Mayfield Township
Body
Agenda of: June 22, 2022
Item No.: 2022-255
Amount: Revenue Contract
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: June 22, 2022
RE: Proposed Amendment No. 3 to Water Service Contract with Mayfield Township
MOTION
Upon recommendation of Randal Brown, General Counsel, the Board of Directors ("Board") of the Great Lakes Water Authority ("GLWA"), authorizes the Interim Chief Executive Officer ("ICEO") to execute Amendment No. 3 to the 30-year water service contract with Mayfield Township; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On 4/11/2022, the Mayfield Township ("Member Partner") Board agreed to the terms of Amendment No. 3 ("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 3.06 is added. This new section provides that if, for the duration of the contract, the Member Partner maintains only one retail account within its service area (in this case, the KAMAX manufacturing facility), and that business closes or moves its operations outside the Member Partner's service area, then the Member Partner has the right to terminate the contract upon payment of all outstanding charges. Previously, on January 26, 2022, this Honorable Body agreed to the insertion of this clause into contracts where appropriate.
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 ...
Click here for full text