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Following an extensive contract renewal process, the Minneapolis City Council recently approved a 20-year contract to provide treated water to the Joint Water Commission (JWC) cities of Crystal, Golden Valley, and New Hope retroactive to January 1, 2004. The new contract (highlighted below) will extend the JWC’s working relationship with Minneapolis, which began in 1962. The new contract locks in the wholesale rate the JWC will pay for water for the first five years, starting at $1.75 per thousand gallons in 2004 and increasing incrementally to $2.12 per thousand gallons in 2008. In addition, the JWC pays for maintenance of the collective storage and distribution system. Utility customers in each JWC city will pay a different water rate based on the additional costs each city incurs to maintain its water distribution system. Watch your utility bill for more information about Golden Valley’s rates. Following 2008, JWC rate increases will be based on a percentage of the water rate Minneapolis residential customers pay. A study will be conducted every five years to determine the actual costs Minneapolis incurs to provide water to the JWC. The contract rate applies to JWC water usage of up to 21 million gallons per day (mgd). Current daily usage by the three cities averages about 8 mgd, with summer peak usage as high as 27 mgd. If JWC water needs occasionally exceed 21 mgd, the entire water volume on that day will be priced at a 15 percent surcharge. Water use restrictions imposed on Minneapolis residents and businesses will simultaneously be imposed on JWC utility customers. Minneapolis cannot place additional restrictions on the JWC beyond those affecting its in-city customers; however JWC cities may choose to restrict water use in their communities. The contract includes a provision that the City of Minneapolis and the JWC will participate in a joint task force that will meet regularly over the next three years to consider a stronger governance role for the JWC in the Minneapolis water system, emergency interconnections of water systems in the west metro, development of an emergency backup water supply, and potential future use of JWC groundwater to augment Minneapolis’ river water supply. An interim report will be prepared by 2007, with a final report by 2008. If either party determines that the other is in default of, or has breached any of the terms or provisions of the contract, that party may terminate the contract with five years written notice following a mandatory mediation process. For more information about the new water contract between the JWC and the City of Minneapolis, contact Public Works Director Jeannine Clancy at 763-593-8035. After final adoption, the contract will be published here. |
