The contract with Glenville
The town of Glenville water district has been supplying Ballston with water since Sept. 21, 1971. According to records obtained under the Freedom of Information Law (FOIL), a subsequent contract was signed on Jan. 30, 1996, extending the purchase until Dec. 31, 2019, under which Ballston agreed to buy a minimum of 36.5 million gallons of water per year.
On Jan. 16, 2002, Callanan and Ballston town board members signed an amendment to the 1996 contract agreeing to delete the clause allowing either the water supplier, Glenville, or the customer, Ballston, to terminate the deal with 36 months' notice. The amendment also extended the life of the contract to Dec. 31, 2022.
Potts said the contract was extended from 2019 to 2022 to match the loan terms for funding for upgrades to the system made by Glenville.
"This was done so that our agreement ran the length of the loan," said Potts.
Town of Glenville Administrator Anthony Germano said Monday, Oct. 29, the town has spent as much as $3 to $6 million in upgrades to its water system to meet the growing needs of Ballston water users.
"What we did was make an investment for a good delivery system to the town," said Germano. "Glenville is set up as a distributor of water, and we do it well."
Germano also said the contract amendment would likely have been signed by Glenville officials to insure those costs were recouped.
"Do you think our board would have said, we'll leave in the clause and give you a chance to walk out?" said Germano. "I think they'd say, 'you're locked in.' It's not unusual to have longer term contracts with other municipalities; you look to make these ties."
Ballston users now pay Glenville $2.35 per 1,000 gallons for an average of 160,000 to 180,000 gallons per day, plus an annual equivalency charge to offset a portion of the debt service for transmission lines, water supply and treatment. Callanan said those charges are $108,000 for 2007 and will rise to $176,000 for 2008.