Title
Lake Pleasant Water Treatment Plant Operating Costs (Ordinance S-43644)
Description
Request to authorize the City Manager, or his designee, to add $393,350 in additional payment authority to the American Water Enterprise, Inc. (3060520) contract for services to treat and produce potable water at the Lake Pleasant Water Treatment Plant (LPWTP). Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The LPWTP is owned by the City of Phoenix and operated by American Water Enterprise, Inc. The plant produces a minimum of 25 million gallons per day to serve the northwest area of the City of Phoenix. In accordance with the contract terms, the contract is adjusted each year based on the consumer price index. The request for additional funding is needed due to the pricing adjustment for fiscal year 2016-17 occurring after the payment authority was approved.
Contract Term
The contract began June 26, 2007, and continues to June 30, 2022, with an option to extend the term for an additional five years, which may be exercised by the City Manager or his designee.
Financial Impact
The annual expenditure for fiscal year 2016-17 is estimated not to exceed $6,387,132. Funds are available in the Water Services Department's operating budget.
Location
The LPWTP is located at 37000 N. New River Road, Peoria, Ariz.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Water Services Department.