Title
Proposed Amendment No. 5 to Water Service Contract with City of Northville
Body
Agenda of: January 9, 2019
Item No.: 2018-1086
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. 5 to Water Service Contract with City of Northville
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 Northville; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
On 12/17/2018, the Northville (“Member Partner”) City Council agreed to the terms of Amendment No. 5 (“Amendment”) to the Water Service Contract with GLWA. This Amendment results from the Member Partner’s recent exceedances (summer 2018 and years prior) of its contractual peak hour flow rate. The Member Partner has agreed to the modification of certain terms and conditions of the contract to provide for more oversight and management of the Member Partner’s rates of flow, including annual meetings with GLWA to review usage for calendar years 2019 and 2020 and, if necessary, beyond. Additionally, the Member Partner has agreed to modify its peak hour flow rates for calendar years 2019 to 2022, as set forth in the attached Exhibit B.
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.