AGENDA DATE: 7/8/2015
TITLE:
Title
Amendment of the 1973 Four Party Agreement Between the City of Charlottesville, Albemarle County, the Rivanna Water and Sewer Authority, and the Albemarle County Service Authority
BODY
SUBJECT/PROPOSAL/REQUEST: Resolution to approve Amendment No. 1 to the Four Party Agreement
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Foley, Davis
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: In 1973, the City of Charlottesville, the County of Albemarle, the Rivanna Water and Sewer Authority ("RWSA"), and the Albemarle County Service Authority ("ACSA") executed a service or operating agreement for the RWSA to provide potable water and wastewater treatment services to its two customers, the City and the ACSA. This agreement, which has remained unchanged since 1973, is commonly known as the "Four Party Agreement."
At the request of City and ACSA staff, the RWSA has prepared a proposed amendment to the Four Party Agreement (Attachment B) that, if adopted, will change the billing methodology used by the RWSA. Section 8.1 of the Four Party Agreement provides that the Agreement can only be amended or modified with the consent of the City, the County, the RWSA, the ACSA and the Bond Trustee under RWSA's Agreement of Trust. The proposed amendment was approved by City Council on June 15, 2015 and by the ACSA Board on June 18, 2015, and is scheduled to be presented to the RWSA Board of Directors on July 28.
STRATEGIC PLAN: Mission: To enhance the well-being and quality of life for all citizens through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: The proposed amendment will change how the RWSA bills the City and the ACSA for capital debt service costs. Currently, the RWSA includes an amount for debt service in the water and wastewater treatment rates it charges the City and the ACSA. Those whole...
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