Title
Proposed Amendment No. 4 to Water Service Contract with City of Ferndale
Body
Agenda of: January 9, 2019
Item No.: 2018-1074
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: January 2, 2019
RE: Proposed Amendment No. 4 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. 4 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 11/26/2018, the Ferndale ("Member Partner") City Council agreed to the terms of Amendment No. 4 ("Amendment") to the Water Service Contract with GLWA. This Amendment is required by the terms of Amendment No. 3 to the Member Partner's Water Service Contract.
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 est...
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