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HomeMy WebLinkAboutMemorandum of Understanding Between the city of Ithaca and the Southern Cayuga Lake Intermunicipal Water Commission 01.04.2007.PDF Memorandum of Understanding Between the City of Ithaca and the Southern Cayuga Lake Intermunicipa-1 Water Commissi()rl Jan a ary 4, 2007 The City of Ithaca (hereinafter, "the City") is currently exploring its long-term, future; water supply options (for a period of up to one hundred years). One option is to obtain water from tlte Southern Cayuga Lake Inter-rnunicipal Water Commission (hereinafter, "the Commission"). To explore that possibility, representatives of the City (Mayor (::arolyn Peterson and Co1lamon Council member Daniel Cogan, together with SuPerintendent William Gray and Controller Steven 'Thayer) and a negotiating team from the Commission conducted a series of discussions. As a result of those discussions, the City representatives and tlae Commission have reached a conceptual agreement: ran what the general terms would be if the Common C"otulcil of the City were to decide to use the Bolton Point water plant operated by the Commission as the C'ity,s wager source. The purpose of this Memorandum of Understanding is to set forth those terms, Which are listed below. It is understood that the Cornmon Coa.mcil will rely upon this iteration of the terms of the potential arrangement between the City and the Commission, in determining whether to use the Bolton Point plant as its future water source. Furthermore, it is understood that any step listed below which requires action by the City is contingent upon approval of this arrangement. by tile. Common CoL1nC il. This memorandum of understandin is intended merely to express the conceptual basis for C.:ity purchase of water from the Commission. This document is not a legally binding document.. Any obligations of the parties and consurnnlation of the proposed water purchase is subject to the negotiation and subsequent execution of a mutually acceptable agreement for such water purchase between the City and Commission containing representations, warranties, covenants and agreements, and conditions, typical to agreements relating to transactions of the type contemplated. 1. It is understood that if the City decides that it wishes to use the Bolton Point plant as its future water source, the existing Bolton Point facility would need to be expanded so as to increase its capacity by an amount the Commission determines is required to adequately supply its customer base. Other infrastructure improvements, as determined by the Commission, will be made M su,fficient:ly increase the capacity of the facility. 2. Furthermore, it is understood that in that case a new transmission main (the East Shore transmission main — ESTM) would need to be constructed, to carry water from the new clearwell at the Bolton Point plant to a suitable point in the existing City distribution system, in the vicinity of Ithaca High School. 3. Both the expansion of the Bolton Point facility and the construction of the. ESTM would require environmental review. It is understood that if the City decides it wishes to use the Bolton Plant facility for its water supply, the Commission will undertake the required environmental review for the aforementioned plant expansion, and that, at the same tune, the City will undertake the required environs dental review for the construction of the ESTM. I 4. The cost of said environmental review for plant expansion, and the cost ol'any subsequent plant.expansion (including the new clearwell) intended to supply water to the City, will be paid for by the Conirnission, from the water rage that the (:'onlnlission charges each of the member municipalities and the City for water. 5. The cost oi'said environmental review for the ESTM, and fOr construction of the ESTM, will be paid for by the City. 6. If it is determined that the environmental reviews are required to he completed Lis a comprehensive environmental review, a cost sharing formula will be developed. 7. Pending the outcome of said environmental review and a decision to proceed by the City, the Commission will construct the aforementioned expulsion of the Bolton Plant, including, the new clearwell in as timely a fashion as possible, and the City will construct the L-;STM in as l.imely a fashion as passible. S. `File City shall own the ESTM but the Commission may utilize the ESTM for transmission of water to other member municipalities. The Cornrnission and City shall share in the cost of rnaintcnance and operation of the ESTM in proportion to the relative use of name by each party. 9. In the event that the City chooses to pursue this approach, the rate charged to the City for water it uses from the Bolton Point plant would be the same rate that is charged to each of the live rnernber municipalities. I().The City will appoint two members to attend meetings of the Commission. Of tale two members, at least one shall be either the Mayor or another member of Common C"ouncil. 1 1. The members appointed by the City will endeavor to attend all meetings of the Commission and will be entitled to participate in all diSCLISS1onS. They will not have ',.I vote. 12. It is the intention of the Commission that the City will be considered for partnership in the Commission at some point in the future. To this end, the parties commit to conduct timely discussions to pursue this goal. 13. If the City does become a member of the Commission, no additional financial contribution will be required, other than those require(] of the other members, beyond what the City has already paid as part of its water rate. The City will continue to he responsible for its proportional share of any assessillerats made upon the member 1111,1nlclpalltleS. 14. If the City does not: become a partner in the Commission, the. terns of the wager supply agreement will expire when the bonds for the system upgrades required for the Commission to supply the City with water are retired. The agreement will then be autonlat.ically renewed for subsequent five-year terms. 2 15. If the Commission's member municipalities approve (luOridaCion 01't:he welter supply, only the water supplied to the member iriunicipalities will have fluoride added and no fluoride will be added to the water supplied to the City of Ithaca. 16. Each party will bear its own expenses with respect to the proposed transaction except as Otherwise stetted herein, including all costs and fees incurred in connection with the negotiation trod execution of any agreement. For the City: Carolyn Peterson, Mayor Date For the Cc�rrvzlission: H. Michael Newman, Chairperson Date 3