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