48-07 JEDZ Agreement - Laserfiche WebLink

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ARTICLE Im WATER RATES :[) Water rates shall be calculatect as set forth in Article 4 of the Agreement. The water rates charged to MUNTCTPALTTY, as set oy PURVEYOR'S Board of Control and approved by its City Council, shall then be reduced by $.34 per mcr during the current rate period of 2007, $.35 per mcr for the rate period 2008 through 2009, and $.36 per mcr for the rate period 20113; other rate reductions that shall emanate from increased ca pital contributions oy PURVEYOR to direct service communities during these rate periods sha] be similarly calculated utilizing the method set forth in Section 2 of this Article T. 2) The water rates during future rate periods within the term of this Amendment shall be reduced to account for the cost of capital improvements in the water distribution system on behalf of Direct Service communities who have entered into JEDZ agreements. Such rates shall be calculated based on the debt service of the proposed suburban distribution system capital investment divided by the estimate consumption during that rate period, expressed in dollars (or fraction thereof) per thousand cubic feet ($/mcf). Debt service rate reductions will accumulate until such debt is acquitted. Should the capital investment be made on a cash (pay as you go) basis, the rate reduction will be calculated as the cash investment in the suburban water distribution system divided by the estimated consumption during the rate period in which the investment is made. ARTICLE 2. TERM OF AGREEMENT The term of the Master Meter Water Service Agreement shall be for a minimum period of twenty (20) years commencing on the first day after execution of this Amendment by PURVEYOR, and shall automatically continue in reflect from year to year thereafter. This Amendment may be cancelled by either party by giving written notice to the other at least five (5) years prior to the effective date of termination~ provided that no such notice may be given until fifteen (15) years after the date upon which this Amendment is executed by PURVEYOR. Any notice of cancellation shall be by certified mail, return receipt requested, addressed to the highest ranking official of the receiving party. Tn the event of termination of this Amendment, the Director or his designated representative shall have sole control over the terms and conditions of the supply of water to HUNTCTPAL1TY'S service area, so long as water is being supplied by PURVEYOR to said service area.