Utility Committee Agenda and Packet 2020 10 13

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V. Public Comments on Items Not on the Agenda No comments made. VI. Windy Gap Firming Project Allotment Contract — Page 14, Draft Resolution. Mr. Peterson began by explaining the goal of bringing the allotment contract to the October 611 City Council Meeting and Northern District is looking to approve by October 8, 2020. He continued saying that a confidential memo was sent to committee members for review. Committee discussed the intent of this memo. Councilmember Lipton asked what the schedule is for getting our comments on the Allotment Contract. Mr. Peterson said we are looking for a recommendation from the committee where you'd be in favor with moving forward with the Allotment Contract. Mr. Kowar explained the contract is a consortium of many cities that have been working on this for some time now and he asked if there were any high concerns that we can work out today and that we are looking for finalization and not reiterations. Councilmember Lipton said he would like to know more with the organization/corporation and the governance of the corporation and where we fit in, who's going to govern it, who's going to be the staff to manage. Mr. Peterson replied that Northern is governed by a Board of Directors that takes recommendations from the various participants. Mr. Peterson along with the legal counsel Varnesh and Raisch represent Louisville at the participants meeting. Councilmember Lipton then said he has a number of questions regarding managing the risk, i.e. what kind of liabilities do the participants accept including Louisville. Councilmember Lipton suggested that the risk conversation be delayed but would like to address a few scenarios like if water can't be delivered or litigation that holds up the project, etc. Mayor Pro Tern Councilmember Maloney added what he's interested in is understanding the transfer of Allotment and the default area. Mr. Kowar stated that we do have everyone here today to answer all these type of questions/concerns. Councilmember Fahey asked the water attorney if he had any concerns, red flags, etc. Mr. Hill replied that he does not and commented that this is modeled after the typical CBT Delivery Contracts that have worked very well for a number of years. He understands that Council is concerned about default and if payment isn't made on the bonds. Regardless of which way council goes his perspective of knowing how NCWD has managed those contracts and the protection in those contracts gives him confidence the agreement will be well managed once it's executed. Mr. Johnson confirmed that he too is confident with NCWCD's management and explained his experience with the same type of agreements with Windy Gap Firming and the CBT and stated that overall we have one of the best entities that has the most experience in operating large reservoir projects with multiple public participants. So he has no red flags that we need to address today that would give us any cause to give any pause in approving. Councilmember Lipton asked if all information is public. Cory stated that most information