Title
Resolution to Approve the First Renewed and Amended Water Supply Agreement Between the City and Ann Arbor Charter Township
Memorandum
Attached for your review and consideration, please find a resolution to approve the First Renewed and Amended Water Supply Agreement between the City and Ann Arbor Charter Township.
The current water supply agreement between the parties was approved in March 2005, and it replaced a 1984 water supply agreement. The current 2005 agreement has a twenty-year initial term and is set to expire December 31, 2025. In late 2022, the City notified the Township of its desire to renew and amend the agreement, mainly to update it to reflect changes over the past 20 years.
In the interests of public health, safety, and welfare, the City and Township desire to renew and amend their water supply agreement to continue to provide for a reliable water service supply to the Township through connection to the City water system.
Negotiations on the renewed and amended agreement were extensive. The proposed First Renewed and Amended Water Supply Agreement is based on the 2005 agreement and generally retains the same form and substance, subject to certain revisions and updates. A summary of the changes and what remains unchanged follows.
Under the proposed agreement the City would continue to supply and sell to the Township, and the Township would continue to be allowed to take and purchase up to 1.5 million gallons of water per day (MGD) or a peak flow rate of 3.0 MGD, which is defined as the Guaranteed Capacity. The Township uses approximately 60-65% of its Guaranteed Capacity, and there is no change in the quantity of Guaranteed Capacity. The revisions to this provision involve updates to reflect use of current industry terminology such as replacing "instantaneous rate equivalent flow" with "peak flow" throughout the new agreement. This provision also provides a process through which the Township can request additional capacity and have th...
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