Consent 1.G.
Regular City Council Meeting
- Meeting Date:
- 10/24/2016
- TITLE
- W.O. 14-11, Water Reclamation Facility Nutrient Upgrade, Expansion and Improvements; Northwestern Energy Agreement
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
The Council is asked to approve a Customer Agreement with NorthWestern Energy (NWE) in the estimated amount of $235,752. As part of the work planned for W.O. 14-11, Water Reclamation Facility (WRF) Nutrient Upgrade, Expansion and Improvements, NWE needs to remove all of their metering equipment from City-owned electrical facilities at the WRF. NWE would first install their new equipment inside their two nearby substations and also run new electric service lines to the fence line at the edge of their substations as part of the agreement. The total Contribution in Aid of Construction from the City is estimated at $235,752, which may be adjusted after construction based on actual costs.
ALTERNATIVES ANALYZED
City Council may:
- Approve the service agreement with NWE and pay the associated fee, or;
- Disapprove the service agreement. If the service agreement is not approved, changes to the existing NWE equipment arrangement cannot be made, and the risk of failure and damage to City-owned electrical equipment and associated treatment processes cannot be reduced.
FINANCIAL IMPACT
The cost of the service agreement with NWE is $235,752. Funding for this work was budgeted in FY17 and the source is wastewater funds.
RECOMMENDATION
Staff recommends that the City Council approve the customer service agreement with NWE in the amount of $235,752.