TR-86-42 001 Resolution No. TR-86-42
002 A Resolution Authorizing the Town Manager to Negotiate A
003 Water Rate Contract with the City of Springfield
004 WHEREAS: In September.1985, the City of Springfield proposed_ a.
005 23.1% water rate increase for its suburban users which abandoned a seven-
006 year negotiated settlement between the City and .the suburban compuinities;
007 and
008 WHEREAS: The suburban commmnities disputed the need for the
009 increase and eventually, zn December 1985, the City agreed to a one-year
010 continuance of the current water rate structure pending further
Olt negotiations; and
' 012 WHEREAS: in August 1986, only eight months into the verbal agree-
013 ment highlighted above between the City and its suburban communities, the
014 City of Springfield is proposing .an 11% increase in water rates; and
t015 . WHEREAS: The Town of Agawam strongly contests this proposed water
016 rate increase based on the following facts and information:
' 017 1) The proposed rate was not pre-negotiated between the parties
018 as alluded to by the City in December 1985;
019 2) The City of Springfield is proposing an increase for the
020 suburban communities while its own rate structure will go unchanged;
' 021 3) The Springfield Water Department showed a 5.9 million dollar
022 surplus last year and has not substantiated why this surplus will not be
023 applied towards reducing the water rate for its suburban users;
' 024 4) The suburban communities are being used to subsidize an
025 artificially low water rate for the City of Springfield;
' 026 5) The present study which is being used by the city to justify the
027 rate increase is not comprehensive and fails to address revenues which
028 could be used to reduce the water .rates;
029 6) The City of Springfield is not offering the Town of Agawam any
030 consideration for the special services the Town provides to the City
031 free-of-charge, i.e. , police protection of the City's properties within
032 the Town, tax-free or minimally-taxed properties owned by the City within
033 the Town's corporate limits;
034 7) The City of Springfield is not offering the Town of Agawam
035 consideration for its cooperative effort in the Resource Recovery Facility
036 and for serving as host community for this facility;
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037 WHEREAS: The Town of Agawam is desirous of entering into a fair
038 and equitable water rate agreement between the:Tawn of Agawam and the
039 City of Springfield but does not wish to subsidize the water rates for
' 040 the City of Springfield;
041 NOW THEREFORE BE IT RESOLVED THAT THE TOWN COUNCIL of the Town- of
' 042 Agawam hereby..authorizes .the Town Manager to negotiate a fair and
043 equitable water rate contract with the City of Springfield and to take
044 any other action relative thereto in order to -achieve this objective.
045 DATED THIS DAY OF CiC ,OC]Pc3 , 1986.
1 046 PER ORDER OF THE AGAWAM TOWN COUNCIL
047 Andrew Gallano, sident
048 Agawam Town Council
' 049 APPROVED AS TO FORM AND LEGALITY
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050 Town soI citor
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1 AMENDMENT -- OG'I"OBER 14, 1986
At the Special Town Council Meeting held on Tuesday, October 14, 1986, the
following amendments were made to the above resolution:
' 044a WHEREAS: The Town of Agawam is desirous of investigating the
044b feasibility of changing the current laws regarding payment in lieu of
044c taxes which the City of Springfield pays on the water utility to insure
044d a better return on the facilities that exist within our corporate limits;
044e and
044f WHEREAS: The Town of Agawam shall comtemplate, if all other avail-
' 044g able courses of action fail, the initiation of litigation and will seek
044h to have the court issue a declaratory judgement setting the rights and
044i duties of the parties for the future.
' 044j APPROVED AS AMENDED
044k PER ORDER OF THE AGAWAM TOWN COUNCIL
' 0441 Andrew Gallano. President
044m Agawam Town Council
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