The Director of Public Utilities may enter into direct-service and master-meter water service agreements with municipal corporations or public authorities for water service under rates, terms, and conditions that differ from those contained in Chapter 535 for the purpose of meeting competition from alternative water suppliers if all of the following apply:
(a) The municipal corporation or public authority has access to an alternative water supplier or is likely to gain such access in the reasonably foreseeable future;
(b) The revenue to be generated under the contract is not below the cost of service, as determined by the Division of Water;
(c) The contract is for a term of at least twenty (20) years;
(d) The contract, with the exception of negotiated provisions, is substantially in the form of the Division of Water’s standard direct-service and master-meter agreements;
(e) The contract has been approved by the Director of Law; and
(f) The contract has been approved by the City Council upon a finding that entering into the contract is necessary to meet competition from current or potential alternative suppliers and is in the best interests of the Division of Water and its water customers and bondholders.
(Ord. No. 911-04. Passed 6-7-04, eff. 6-8-04) (BOC Res. No. 321-04. Adopted 5-26-04)