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File #: 2018-983    Version: 1 Name:
Type: Contract Status: Passed
File created: 10/26/2018 In control: Board of Directors Workshop Meeting
On agenda: 11/14/2018 Final action: 11/14/2018
Title: Proposed Amendment No. 3 to Water Service Contract with Village of South Rockwood
Sponsors: Randal Brown
Indexes: General Counsel
Attachments: 1. South Rockwood Water Contract Am 3 EX B 2018

Title

Proposed Amendment No. 3 to Water Service Contract with Village of South Rockwood

 

Body

Agenda of:                      November 14, 2018

Item No.:                     2018-983

Amount:                     Revenue Contract                                                                                                                                                                                             

 

TO:                                          The Honorable

Board of Directors

Great Lakes Water Authority

                                          

FROM:                     Sue F. McCormick

                                          Chief Executive Officer

                                          Great Lakes Water Authority

 

DATE:                     October 26, 2018

 

RE:                     Proposed Amendment No. 3 to Water Service Contract with Village of South Rockwood

 

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. 3 to the 30-year water service contract with Village of South Rockwood; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.

BACKGROUND

On 10/15/2018, the South Rockwood (“Member Partner”) Village Council agreed to the terms of Amendment No. 3 (“Amendment”) to the Water Service Contract with GLWA.  This Amendment is one of several regularly occurring amendments as mandated by the terms of the standard 30-year water service contracts with GLWA’s member partners. 

 

Additionally, through the One Water Partnership, GLWA member partners requested that GLWA undertake an effort to place all member partners on the same periodic contract review schedule (“Reopener Schedule”) to assist in reducing, as much as practicable, volatility in member partner charges.   GLWA agreed to devise a contract alignment process (“CAP”) which would result in all model contracts being reopened on a four-year schedule beginning in calendar year 2022 and every four years thereafter.  The CAP requires that, regardless of the Member Partner’s current Reopener Schedule, that the Member Partner’s contract be amended in calendar year 2018.  As a result of the CAP, Section 5.07 of the Member Partner’s contract requires modification to allow for the change to the now universal Reopener Schedule. 

 

In this Amendment, Section 5.07 of the Member Partner’s contract has been modified to establish the universal Reopener Schedule.  Additionally, as set forth in the attached Exhibit B, GLWA and the Member Partner have agreed to affirm or modify (i) the pressure range at directly metered locations for calendar years 2019 to 2022, (ii) the maximum day and peak hour values for calendar years 2019 to 2022, and (iii) the projected annual volume for system planning purposes for fiscal years 2020 to 2023.

 

Lastly, this Amendment updates Exhibit A of the contract, which establishes the Member Partner’s service area boundaries, meter locations, emergency connections, those retail customers outside of the Member Partner’s corporate limits, and each party’s respective ownership and maintenance responsibilities.  Exhibit A is not attached for homeland security reasons.

 

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 2019-2020 schedule of charges.

COMMITTEE REVIEW

This matter is being presented directly to the full Board of Directors for consideration and approval.

SHARED SERVICES IMPACT

This item does not impact the shared services agreement between GLWA and DWSD.