Title
Lake Pleasant Water Treatment Plant Service Agreement - Amendment (Ordinance S-48649)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract 107745 with Contract Services, LLC which is an affiliate of Veolia North America, Inc., to exercise the City's renewal option to extend the service agreement for five years, and to execute other documents as may be necessary or appropriate to implement the provisions of this Ordinance and the extension. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures included in this amendment will not exceed $38 million.
Report
Summary
The purpose of this amendment is to extend the contract to continue operation and maintenance of the Lake Pleasant Water Treatment Plant (WTP).
The Water Services Department (WSD) originally contracted with American Water Services, Inc., subsequently known as American Water Enterprises, Inc. (American Water) to operate and maintain the Lake Pleasant WTP. American Water then assigned the contract to Contract Services, LLC as approved by Council in 2018. The initial fifteen-year term of the contract with Contract Services, LLC expires June 30, 2022. WSD seeks authorization to exercise the City's renewal option and to execute the five-year extension as outlined in the original contract.
Contract Term
This amendment will extend the end date of the contract term from June 30, 2022 to June 30, 2027.
Financial Impact
This amendment will authorize an amount not to exceed $38 million in spending authority over the term of the extension.
Funding is available in the Water Services Department Operating Budget.
Concurrence/Previous Council Action
The City Council approved:
- Service Agreement with American Water Services, Inc., - Lake Pleasant WTP Design Build Operate Contract 107745 on July 2, 2003;
- Service Agreement with American Water Services, 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.
The Transportation, Infrastructure and Planning Subcommittee recommended approval of this item on May 18, 2022, by a vote of 3-0.
Location
Lake Pleasant WTP
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.