Consider and take action on the Non-Emergency Water and Sewer Service Agreement with Topaz Generating, LLC

Topaz Generating operates a power plant located at 5651 Attwater Avenue with a primary water source from Gulf Coast Water Authority.  ERCOT is requiring electrical power providers to enhance their stand-by generating capacities and to increase the resilience of their operations during periods of high demand.  To satisfy these requirements from ERCOT,  Topaz Generating desires to contract with the City for potable water as a non-emergency, non-essential, back-up and secondary source of water for occasional use to support the routine operation of the power plant.  In association with the receipt of source water from the City, Customer may from time to time have additional reject water from its processes which requires disposal into a permitted sanitary sewer collection system.  The City municipal sanitary sewer system and existing lift station at Attwater No. 33 has existing additional capacity for the collection of such reject water to the extent of two hundred gallons per minute (200 gpm).   The parties have a Sewer Use Agreement dated May 2, 2022 which will be replaced in its entirety by this agreement when executed.

Staff recommends approval of the non-emergency water and sewer service agreement.  In accordance with City Charter, this agreement is being brought to City Commission for approval because revenues within the first 12 months may could exceed $50,000.  The agreement incorporates the water and sewer rates adopted by City Commission and applicable to other customers of the system, including any updates to such rates.