Memorandum

City of Lawrence

TO:	Mayor and City Commissioners
FROM:	City Manager David L. Corliss
Date:	October 2, 2008
RE:	Rural Water District #5 Contract and future rural water district contract amendments

Staff is recommending the approval of the proposed contract with Rural Water District #5.

This contract represents a policy shift in the current rural water district contracts in the elimination of the growth limits in meters and the contractual responsibility of the City to possibly sell water beyond the water rights held by a wholesale water supplier.  Staff believes that these policy changes are appropriate.  The limitation on the growth of water meters in rural water districts has been viewed as an appropriate contractual provision for both utility management and growth management purposes since the inception of City of Lawrence contracts with rural water districts.   In the absence of adequate land use controls in the unincorporated area of Douglas County, meter limitations were viewed as an appropriate tool to avoid the problem many communities have faced with poorly planned unincorporated growth.  The recent enactment of new rural subdivision regulations has responded to these previous concerns.

If the Commission approvals of Rural Water District #5 contract, staff recommends that we contact the other rural water districts with meter limitations to determine their interest in adopting a contract similar to that approved with RWD #5.