At this week’s Administrative Service Committee meeting, Gay Williams, city attorney, requested council authorization for Mayor Gillen to enter into the proposed Water Supply Agreement between the Novelis Corporation, the town of Scriba and the city of Oswego.
“The city and Novelis have been discussing this contract for many months,” she said. “The prior agreement expired in January 2012. We have drastically changed it because of Novelis’ expansion.”
Water is now supplied through the city’s 36-inch line through Scriba.
It is a 10-year agreement.
“It provides for a very reasonable water rate. It provides for adjustments to the rate based on the Consumer Price Index,” Williams said. “It also has provisions in it in case of emergency situations. It is metered water, city and town and Novelis will have access to the meter.”
The pact calls for 2.88 million gallons of water per year, “which is considerably more than Novelis was previously using,” she added.
If Novelis comes back to the city with a request for additional water, which calls for any capital improvements on the part of the city, Novelis will participate in that cost.
“We think that it is a very fair agreement. Novelis is putting it through their corporate approval process,” Williams said. “I’m told they don’t expect any problems on their end.”
Scriba will get paid by Novelis for the water.
“We will bill Scriba; Scriba bills Novelis for the whole amount plus their service fee. Scriba will then pay us,” the city attorney explained.
The city’s base rate is $0.588 per thousand gallons of potable water delivered to the town for supply to Novelis; plus the town maintenance fee of $0.0675 per thousand gallons delivered by the city for supply to Novelis and actually supplied to Novelis by the town.
The committee sent the request to the full council for consideration.