10-25-2006 Council Agenda - Laserfiche WebLink

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i1SSS Sanala MAYOR Bill Biesenet- COUNCIL Jim LaValle Rick Montour Barbara Allan John Keis 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www.ci.little-canada.mn.us TO: Mayor Bill Blesener & Council Members FROM: Joel Hanson & Shelly Rueckert RE: St. Paul Regional Water Services Contract Attached is the executable St. Paul Regional Water Services (SPRWS) contract. As you know we renegotiated our water rate for 2005 from 84% of St. Paul retail rate to 71% as part of this new contract. This is the same rate as Roseville is paying for water. The contract's initial term is for 20 years with two 10 -year renewal options. The contract itself is modeled after Roseville's wholesale contract with a few requested modifications. They are as follows: • We added poison pill language to protect the City in case SPRWS is acquired by a private entity. (This was discussed a few years ago and we wanted to ensure if that situation resurfaces, we would be protected from a rate standpoint. • We added language to protect the City's wholesale rate from being higher than any other wholesale customer. This language was in our prior contract and was helpful in our renegotiation of a lower rate prior to the expiration date of our previous contract (scheduled for 2007). The only exception to this clause is if SPRWS wants to lower the rate as a new business incentive to attract a new customer to their system. Then this can only occur for a five -year period. We also think it is unlikely this provision will be utilized due to water supplies being fairly established and SPRWS need to justify it to their board which includes members of other cities. • We modified language regarding the default and cure periods to allow the City a longer period to cure the default versus having our contract terminated. We also will have a longer period of time to make other arrangements for water in the event of a default that we did not intend or cannot cure. (We will have six months to cure a default and two years before the contract can be cancelled.) • We modified the delivery point of water to the City from the existing meter house on SPRWS right -of -way in Maplewood to our Booster Station off of County Road B. This also transfers meter house maintenance to SPRWS; saving us having to roof the structure in the short- term.) Subject to any comments by the City Attorney, staff recommends that the contract be approved for signature.