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REVIEW RECOMMENDATIONS FOR CHANGES TO JOINT POWERS AGREEMENT BETWEEN THE CITY OF ANOKA AND THE CITY OF RAMSEY FOR THE SUPPLY OF MUNICIPAL WATER SERVICE TO PORTIONS OF THE CITY OF RAMSEY By: Jessie Hart, Finance Officer Background: As you will recall, a joint powers agreement prepared by the City of Anoka was presented at the April 9, 1996, regular Council meeting for review and consideration [attached]. It was Councils direction to have the agreement reviewed, and possibly revised by City Attorney Bill Goodrich. The City of Anoka originally offered to sell the City of Ramsey their excess capacity at a level not- to-exceed one million gallons per day. The new agreement provides the ability to purchase a supply of water of at least one million gallons per day, limited only by a catastrophic event. This agreement runs through December 3, 1999. Staff had expressed concerns regarding the sections dealing with "sale of water", "water conservation", and compensation. The original agreement allowed Anoka to give notice of termination fairly immediately. This agreement is intended to run without termination through 1999. Thereafter, Anoka would need to provide nine months notice of termination if a new agreement was not negotiated. Under "water conservation", it is Anoka's intent under this agreement to not require more stringent conservation measures than their own. However, if they disallow their residents use of water, their expectation is that the same would occur in Ramsey if we are drawing from their system. Under the compensation section, it is Anoka's intent to use the same rate table for industrial customers in months that Ramsey draws water. What this means is that if we do not absolutely need to draw from the Anoka system in September, we need to close the valve before the first day of the month to avoid that charge. Anoka has also amended the schedule slightly to Ramsey's benefit for high usage months. Given the above, staff is recommending Council ratification contingent upon Attorney review and contract compliance with the above understandings. Committee Action: Motion to recommend Council approve redrafted agreement and forward to the City of Anoka for consideration - based on discussion and input supplied by City Attorney Bill Goodrich. Reviewed by: City Administrator Finance Officer City Engineer City Attorney FC: 04/23/96 Shared/Jessie