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BOARD OF WATER COMMISSIONERS <br />President: Patrick Harris + Vice President: John Zanrniller <br />Cony ssioners: Matt Anfang + Bob Cardinal • Gregory Kleindl + Debbie Montgomery • Dave Thuile <br />August 20, 2004 <br />Mr. Joel Hanson <br />City Administrator <br />City of Little Canada <br />515 Little Canada Road East <br />Little Canada, MN 55117 <br />Subject: Wholesale Water Contract Proposal <br />Dear Mr. Hanson: <br />Enclosed please find our initial draft of the contract for Saint Paul Regional Water Services to provide <br />water to the City of Little Canada on a wholesale basis. We have updated many of the sections to reflect <br />various changes that have happened over the 34 plus years since the original contract was drafted. The <br />major changes as we discussed in our meeting on August 3, 2004 are as follows: <br />• Section 1.02 Term — This has been changed to reflect a term of 20 years <br />• Section 6.01 Rates — This has been modified to reflect a rate of 72.5% of our lowest seasonal rate <br />charged to retail water consumers in the City of Saint Paul. We have also added language that <br />would guarantee that this percentage be maintained in the event SPRWS was mandated to change <br />our rate structure from one that is solely based on consumption. <br />• Section 9.10 Effective Date of Agreement - This has been added to make the effective date of <br />this contract December 1, 2005 as I proposed in our meeting. The current contract is effective <br />through February 10, 2007. I understand that the City of Little Canada desires an effective date <br />of contract as soon as possible. I have discussed this issue with the President of the Board of <br />Water Commissioners, Pat Harris. While we understand your position of making the rate change <br />immediate, we also have an obligation to all of our customers. We feel that the offer by the <br />Board to City of Little Canada of a contract that significantly lowers the water rates fourteen <br />months prior to the end of a binding contract is a fair compromise between the two parties. <br />Please review the entire contract so we can meet again to discuss any changes that you feel are necessary <br />to the terms or language. I will be out of the office from August 23 -28, 2004, If you need to contact our <br />office during that time, please contact David Wagner, Business Division Manager at 266 -6261. Else, you <br />can call me anytime after August 30, 2004. <br />Stephen P. Schneider <br />General Manager <br />SPS /mjg <br />Attachment <br />SAINT PAUi. REGIONAL WATER SERVICES <br />Stephen P. Schneider, General Manager <br />8 4th St E. Saint Paul MN 55101 -1007 • TTY: 651 -266 -6299 <br />Saint Paid Regional Water Services provide., tt1eL; water services to the following cities: <br />Arden Hius Falcnn 'tleiglus•LauderdaleLittle Canada•ivlaplewood . btendota.Mendota HeiglitsRoseville.Saint Puub West Sr Paul <br />