CITY OF SURPRISE
Main Agenda
  October 22, 2009 @ 6:00:00 PM
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Council Meeting Date: October 22, 2009 Contact Person: Robert Beckley, Public Works
Submitting Department: Public Works District: Citywide
Staff Recommendations: Approve    
Consent       x
Regular        
Public Hearing        
Report/Discussion        
Agenda Wording:
Consideration and action to entering into electric service contracts with Electric District 7 (ED7) for the supply of power and energy for all of our water and wastewater facilities located within the district. 
Motion:
I move to approve entering into electric service contracts with Electric District 7 (ED7) for the supply of power and energy for all of our water and wastewater facilites located within the district.
Background:
Electric Districts were created as Arizona political subdivisions by statute in 1922 for the purpose of bringing power and water to rural areas. The Electric District purchases power at a discounted rate from electric generators (typically a hydroelectric plant at a dam) and wheels the electricity over APS’s transmission and distribution wires (APS charges a fee) and delivers it to their customers.

Electric District #7 (ED7) is a public electric power provider that services agricultural activities in the City of Surprise area and is allowed to provide electric power for the pumping of water and wastewater. Currently, ED7 provides electric power to the original meter at the SPA 1 Water Reclamation Facility.

This request is to enter into service agreements with ED7 for electric power to all well sites, water supply facilities, and water reclamation facilities within the ED7 service area.
Wastewater
Point of Delivery                          Location                               Service Address
SPA 1 WRF SES #2                     Bldg 14                              11404 N. 136th Avenue
SPA 1 WRF SES #3                     Bldg 16                              11401 N. 136th Avenue
SPA 1 WRF SES #4                     Bldg 6                                11401 N. 136th Avenue
SPA 1 WRF SES #5                     Bldg 6                                11401 N. 136th Avenue
SPA 1 WRF SES #6                     Bldg 10                              11401 N. 136th Avenue
SPA 1 WRF SES #7                     Bldg 7                                11401 N. 136th Avenue
SPA 1 WRF SES #8                     Bldg 7                                11401 N. 136th Avenue
SPA 1 WRF SES #9                     Bldg 11                              11401 N. 136th Avenue
SPA 1 WRF SES #10                   Bldg 9                                 11401 N. 136th Avenue

Water
Royal Ranch Well #1                                                              14635 W. Greenway Road
Sierra Verde Well #1                                                              14309 W. Greenway Road
Rancho Gabriela WSF                                                            12116 N. 136th  Avenue
Rancho Gabriela Well #1                                                        12239 N. 149th Drive
Rancho Gabriela Well #2                                                        11684 N. Bullard Avenue
Roseview WSF                                                                        13280 W. Country Gables Dr.
Litchfield Manor Well                                                               14620 N 135th Lane

Electric bills will be reduced as much as 40%. APS will remain responsible for service entrances, transformers, wires, etc.
Financial Impact Statement:
The costs associated with this item were approved by the Mayor and Council as a part of the FY2010 budget.  The amounts were budgeted in the electricity accounts for $1,575,200 in the wastewater fund and $847,900 for the water fund.  There is no upfront cost to switch electrical providers.  There is an anticipated savings of up to 40% on the electricity currently budgeted for the 16 sites by switching to ED7.  Operational costs will be adjusted as a part of the FY2011 budget process after the amount of the actual savings has been established.
ATTACHMENTS:
Click to download
Electric District 7 Contract
Electric District 7 rate comparison
Electric District 7 Service Area
External Attachment Links:
Electric District 7 Contract
Electric District rate comparison
Electric District franchise area map
RFLS
Meeting Requirements:
Powerpoint        
Video        
White Board        
Other        
Presentation Speaker Names (spelling and titles for TV captions):
Robert Beckley, Public Works Director