Subject:
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Consider an extension of the Water Agreement with the Town of Dayton for Silver Lake.
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Presented By: City Attorney Brown.
Recommendation and Review
For the past several months staff and representatives from the Town of Dayton have been working on a new agreement regarding the Town's use of water from Silver Lake. Staff efforts in preparing the new agreement have been focused on implementing a pricing formula which accounts for the City's depreciation of water-related assets and which provides an appropriate rate of return, as well as providing the Town with various options to purchase water from the City. Staff and representatives from the Town have not finalized the new agreement. The existing agreement technically terminates on August 2 of this year. The agreement presented to Council is in effect a six month extension of the existing water agreement (but at a payment rate more favorable to the City) in order to keep an agreement in place while staff finalizes a new agreement to present to Council.