Title
Resolution Approving an Interlocal Municipal Agreement with the City of Reidsville for the Purchase of Treated Drinking Water
Body
Department: Water Resources
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven D. Drew, 373-7893
Contact 2 and Phone: Kenney McDowell, 373-4578
PURPOSE:
The interlocal agreement to purchase water from the City of Reidsville ends on June 30, 2014. A new interlocal agreement is proposed to purchase additional treated water for an additional five year term.
BACKGROUND:
The City of Reidsville and City of Greensboro originally entered into a water purchase agreement in May of 1999. The agreement was renewed in September of 2009 with an expiration of June 30, 2014. It obligated the City of Greensboro to purchase not less than 500,000 gallons per day. The proposed new agreement contains the same terms and rates as the previous agreement.
This agreement provides critical capacity and drought protection for Greensboro. In addition, it assists with maintaining water quality and provides the ability to rely on another source when the City's Townsend Plant is wholly or partially taken off-line for planned maintenance.
This matter was considered and adopted by the City of Reidsville on May 14, 2014. The proposed agreement will begin July 1, 2014 and terminate on June 30, 2019.
BUDGET IMPACT:
The minimum purchase under this contract has a budget impact of approximately $320,000 per year. Due to plant shut downs for routine maintenance, and seasonal water quality maintenance, the amount budgeted in the FY 2014-2015 Water Resources Operating Budget is $588,000.
RECOMMENDATION / ACTION REQUESTED:
Water Resources requests and recommends that City Council Approve the Interlocal Municipal Agreement with the City of Reidsville for the Purchase of Treated Drinking Water.