Title
Lake Pleasant Water Treatment Plant Service Agreement Second Amendment and Consent to Assign (Ordinance S-44899)
Description
Request to authorize the City Manager, or his designee, to execute (i) a second amendment to Contract 107745 with American Water Enterprises, LLC formerly known as American Water Services, Inc. (American Water), (ii) a consent to the assignment of the Contract to Contract Services, LLC which will become an affiliate of Veolia Water North America Operating Services, LLC (Veolia), and (iii) all other documents as may be necessary or appropriate to implement the provisions of this Ordinance and the amendment and assignment of the Contract.
Report
Summary
The Water Services Department (WSD) is currently in a 15-year contract with American Water to operate and maintain the Lake Pleasant Water Treatment Plant (WTP). This contract expires April 30, 2022. American Water is selling its merchant assets to Veolia nationwide. WSD seeks authorization to consent to assignment of the Lake Pleasant WTP contract from American Water to Contract Services, LLC which will become a Veolia company. The contract will also be amended to establish a $30 million liability cap for damages resulting from breaches of the agreement, in accordance with current business practices in the industry, and to otherwise effectuate the assignment.
Procurement Information
American Water was chosen for this contract using a qualifications-based selection process according to section 34-604 of the Arizona Revised Statutes.
Contract Term
The contract term is unchanged by the amendment and will run through April 30, 2022, subject to an existing option by the City to extend the contract for an additional five-year term.
Financial Impact
There is no financial impact to the City of Phoenix.
Previous Council Action
On July 2, 2003, the City Council approved Contract 107745 with American Water for operation of the Lake Pleasant WTP, and on Jan. 1, 2014, approved the First Amendment to Contract 107745.
Location
Lake Pleasant WTP, Lake Pleasant Road and New River Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.