Title
Lake Pleasant Water Treatment Plant Operations
Description
This report provides the Transportation, Infrastructure and Planning Subcommittee with an update on the Lake Pleasant Water Treatment Plant operations and requests that the Subcommittee recommend City Council approval to execute an amendment to Contract 107745 with Contract Services, LLC, which is an affiliate of Veolia Water North America Operating Services , LLC, to exercise the City’s renewal options and extend the Lake Pleasant Water Treatment Plant Service Agreement for five years. The additional expenditures included in this amendment will not exceed $38 million.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The Lake Pleasant Water Treatment Plant (WTP) is an advanced, state-of-the-art water treatment plant with a current capacity of 80 million gallons per day. The WTP came online in early 2007 and primarily serves the northwest area of the City. The City originally entered into a fifteen-year service agreement with American Water Enterprises, LLC formerly known as American Water Services, Inc. (American Water) to operate and maintain the facility. American Water then assigned the contract to Contract Services, LLC as approved by Council in 2018. This operations service agreement expires June 30, 2022. The Water Services Department seeks authorization to execute the five-year extension as outlined in the contract. The extension will expire on June 30, 2027. The cost for this five-year extension will not exceed $38 million.
As part of this year’s City Manager’s Proposed Budget, the Water Services Department is seeking approval to add 41 positions and associated equipment to progressively staff the WTP upon conclusion of the five-year contract extension. The Fiscal Year 2022-23 costs of $449,000 represent the initial set of positions and equipment that would be needed in the first year of planning.
Concurrence/Previous Council Action
The City Council approved:
- Service Agreement with American Water Service, Inc., - Lake Pleasant WTP Design Build Operate Contract 107745 on July 2, 2003;
- Service Agreement with American Water Service, Inc., - Lake Pleasant WTP Design Build Operate Contract 107745 - Amendment (Ordinance S-32365) on Sept. 14, 2005; and
- Lake Pleasant WTP Service Contract 107745 - Amendment (Ordinance S-44899) on July 5, 2018.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.