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Item No. 12 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: PARIS GENERATION, LP (PGEN) WATER SERVICE AGREEMENT <br />DATE: June 10, 2016 <br />BACKGROUND: Originally constructed and known as Tenaska III Texas Partners, the City has <br />provided water service on a contract basis to this electric utility located on Lake Crook Road <br />since 1989. Several renewals or rewrites of the original contract have occurred since that time <br />with the water rate being updated through the City's annual water and sewer rate study. <br />STATUS OF ISSUE: City and company officials have worked to develop a renewal of the <br />contract that expired May 31, 2016. This new agreement continues the two part rate structure <br />that is similar to the City's other industrial customers consisting of an annual demand charge and <br />a volumetric rate charge. In addition, the company will continue to pay a separate amount to <br />reserve an additional quantity of water beyond the base agreement. <br />The term of this contract will be three years. <br />BUDGET: Not affected by this action. <br />RECOMMENDATION: Motion to approve the proposed water service agreement with Paris <br />Generation, LP. <br />