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11 - Water Service Agreement with Paris Generation LP
City-of-Paris
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11 - Water Service Agreement with Paris Generation LP
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7/7/2022 2:42:00 PM
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7/7/2022 2:39:25 PM
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Item No. 1 I <br />TO: Mayor, Mayor Pro -Tem, and City Council <br />Grayson Path, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: WATER SERVICE AGREEMENT WITH PARIS GENERATION LP (PGEN) <br />DATE: July 11, 2022 <br />BACKGROUND: Paris Generation LP is one of several contract water customers. Their contract <br />periodically expires and has to be renewed. <br />STATUS OF ISSUE: Working with the City's water rate consultant, Chris Ekrut, the previous <br />contract was reviewed and updated to become the contract now under consideration by the City <br />Council. The contract continues the annual rate calculation under the annual rate study. Updates <br />include a higher reservation rate for water the City guarantees to provide PGEN along with an <br />annual CPI adjustment to the reservation rate going forward. PGEN also agrees to pay for 25% <br />of the annual rate study cost up to $10,000. The previous contract was for a 3 year period. This <br />contract is for 5 years with an optional 5 year extension. <br />BUDGET: N/A <br />RECOMMENDATION: Motion to approve the water contract with PGEN and authorize the City <br />Manager to sign the agreement for the City of Paris. <br />
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