DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Alamodome 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 Alamodome for a period of five years with three five-year extensions at an estimated annual cost of $1,820,000.00.
BACKGROUND INFORMATION:
The original Alamodome Chilled Water Contract was executed in 1991 between VIA and the City Water Board. Pursuant to a stadium agreement, the City constructed and operated the facility until 1994 when it was conveyed to the City. The 20-year contract term was initiated when the Alamodome became operational in May of 1993. Key terms of the original contract included:
* Assessment of Demand and Commodity Charges
o Demand charge recovered fixed costs based on a contracted demand of 7,140 tons
o Commodity charge recovered variable utility costs associated with operation of the plant and was based on actual monthly metered chilled water usage
* Establishment of Demand Charges
o Special Capacity Charge assessed at $11.40 per ton for 4,800 tons due to City's original capital contribution totaling $5.5 million
o Standard Capacity charge assessed at $18.40 per ton for usage not covered by the Special Capacity Charge
* Penalty imposed for subsequent 12 months if contracted demand was exceeded
The original contract expired in May of 2013; however, SAWS agreed to operate under the terms of the existing agreement until a new one could be negotiated. If approved by Council, the new contract would retroactively go into effect on June 1, 2013.
ISSUE:
A new Chilled Water Contract has been negotiated with SAWS to more accurately reflect the needs of the Alamodome and its current event mix. Below are the key terms of the proposed contract:
* Term - five-year contrac...
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