Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a reimbursement agreement with Del-Co Water Company, Inc to establish terms for Del-Co Water Company, Inc.'s reimbursement to the City of costs related to the construction of the Upground Reservoir Project. Del-Co Water Company, Inc. has elected to participate in the construction of the Upground Reservoir project and receive an allocation of the water supply from the project pursuant to the terms of a settlement agreement entered into between the City and Del-Co Water Company, Inc. on July 6, 1992.
As part of the settlement agreement, the City agreed to consider Del-Co Water Company, Inc.'s long term raw water supply requirements in planning its own long term raw water supply and to offer Del-Co Water Company, Inc. the opportunity to participate in the development of such a facility. Upon notification of the City's plans for the Upground Reservoir project, Del-Co Water Company, Inc. elected to participate and to receive an allocation from the total capacity of the facility, as provided for in the settlement agreement. Del-Co Water Company, Inc.'s cost will be a pro rata share of the total costs based on its proportionate allocation of the total capacity and will include construction costs as well as operation and maintenance costs.
FISCAL IMPACT: The City will receive reimbursement payments for costs related to the construction, operation and maintenance of the Upground Reservoir project. No funds are being expended. This is a revenue generating agreement.
Title
To authorize the Director of Public Utilities to enter into a reimbursement agreement with Del-Co Water Company, Inc. to establish terms for Del-Co Water Company, Inc.'s reimbursement to the City of costs related to the construction of the Upground Reservoir Project.
Body
WHEREAS, The City and Del-Co Water Company, Inc. entered into a Settlement Agreement on July 6, 1992, which a...
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