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menzo�andunz <br />To: c�ty coun��l <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: PARIS GENERATION, LP (PGEN) WATER SERVICE AGREEMENT <br />DATE: April 8, 2013 <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 of the original contract have occurred since that time with the water <br />rate updated through the City's annual water and sewer rate study. The water needs of the <br />company have changed since the last contract renewal necessitating a new contract rather than a <br />simple contract renewal. <br />STATUS OF ISSUE: City and company officials have met on several occasions to develop a <br />new contract which protects the City's interests and provides the company with the necessary <br />quantity of water for their operations. This agreement provides for a two part rate structure <br />similar to the City's other industrial customers consisting of an annual demand charge and a <br />volumetric rate charge. In addition, the company will pay a separate amount to reserve an <br />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. (exhibits to the agreement may be reviewed in the city clerk's office) <br />.. 47 <br />