DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
Convention Center Chilled Water Contract with SAWS
SUMMARY:
This Ordinance authorizes a Chilled Water Contract with San Antonio Water Systems (SAWS) to provide chilled water service to the Convention Center for a period of twenty years and thereafter for consecutive one-year automatic renewals until cancelled by either party. The estimated annual amount is $2,775,780 million for the first year of the contract. Upon completion of the Convention Center expansion in FY 2016, the chilled water cost will be approximately $3,271,828 million annually. Due to the expansion, included in these amounts is the added annual cost of approximately $396,778 for the permanent increase in demand, and $132,360 in added surcharges to support the debt service to acquire the additional chilled water capacity that is needed. The City can decide to pay upfront the full cost of the additional capacity that is needed, which is $1,741,223 million.
BACKGROUND INFORMATION:
The current Convention Center Chilled Water and Steam Contract was executed in June 2000 between the City of San Antonio and the San Antonio Water System Board of Trustees. The term of the contract was for 25 years and included a provision for two year automatic renewals until cancelled by either party. SAWS no longer provides steam service for the Convention Center due to the facility transitioning to micro boilers in July 2014. COSA currently pays approximately $2,742,690 million annually for chilled water service for the Convention Center and the Lila Cockrell Theater. Although the contract has not expired, it is necessary to modify the agreement due to the additional chilled water that will be necessary to service the expanded Convention Center. Key terms of the original contract included:
* Assessment of Demand and Commodity Charges
o Dema...
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