HomeMy WebLinkAbout028602 RES - 05/11/2010Page 1 of 3
RESOLUTION
AUTHORIZING THE CITY MANAGER TO ESTABLISH AND ADOPT
BLENDED WATER RATE PRINCIPLES AND CREATE A NEW
PUBLISH RATE CLASS: BLENDED WATER
WHEREAS, Las Brisas Energy Center, LLC ("Las Brisas") has applied for the
necessary permits to construct a petroleum coke -fueled power generation facility
("facility") on property owned by the Port of Corpus Christi along the northern shoreline
of the Inner Harbor in Nueces County, Texas;
WHEREAS, The facility will consist of two approximately 600 MW steam turbines fed by
four boilers (each turbine and its two associated boilers are referred to as a "Unit"), for a
net output of approximately 1200 MW;
WHEREAS, Las Brisas needs a firm, long-term supply of between 15,344 and 21,000
acre-feet of water per year for the operation of both units;
WHEREAS, the facility will be located within the City's Industrial District No. 1;
WHEREAS, the facility will be located within the boundaries of the City's Certificate of
Convenience and Necessity for potable water service;
WHEREAS, Las Brisas has requested that in lieu of providing potable water, the City
supply it with a new type of water "Blended Water," which is a blend of the City's various
raw waters, and which has been partially treated to settle out some of the sediments;
WHEREAS, the City's currently available water supplies are adequate to meet the
needs of Las Brisas;
WHEREAS, Las Brisas will pay for the construction of the pumping station and
distribution pipeline need to transport the water from the City's O. N. Stevens Water
Treatment Plant to its facility;
WHEREAS, in order to encourage the economic development along the Joe Fulton
Corridor and north side of the inner harbor, the distribution pipeline will be oversized to
provide future blended water service to future customers; and
WHEREAS, it is in the best interest of the City to encourage the development of
additional power generation for the region; and
WHEREAS, it is in the best interest of the City to encourage substantial capital
investment and the creation of „jjgh wage jobs within its industrial districts;
028602
Las Brisas IDA - Blended Water Resolution no 2 - 05062010.DOC
INDEXED
Page 2 of 3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The City Manager is authorized to establish and adopt blended water rate
principles and create a new publish rate class: Blended Water based upon the
principles set out in Exhibit A, which is attached to and incorporated into this resolution.
ATTEST:
Armando Chapa
City Secretary
APPROVED: /1 day of May, 2010.
R. Jay ' ei ng
First ss' .tant City = ttorney
For City Attorney
Las Brisas IDA - Blended Water Resolution no 2 - 05062010.DOC
THE CITY OF CORPUS CHRISTI
Joe Adme
Mayor
Page 3 of 3
Corpus Christi, Texas
11th day of May, 2010
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John E. Marez
A 1942A:k
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Nelda MartinezO
Mark Scott/412f
028602
Las Brisas IDA - Blended Water Resolution no 2 - 05062010.DOC
EXHIBIT A
Blended Water Rate Principles
1. New published rate class — blended water.
2. Will have minimum monthly service charge with minimum volume.
3. Subject to Raw Water Cost Adjustment ("RWCA.")
4. RWCA will be adjusted to add new reserve for future water supplies.
5. Blended water volume charge will reflect diversion cost and operating and
maintenance costs of blended water pump station and distribution charge.
6. Diversion costs will consider pumping costs from Nueces River to ONSWTP and
costs of pre -sedimentation basis and wash -water recycle basin. Costs will be
proportioned with treated water customers.
7. Consider peaking charge.
8. Rate will be "fair," "equitable," "non-discriminatory," and comply with generally
accepted water rate principles.
9. Existing water customers will not pay for oversizing blended water distribution
pipeline.
10. Impose "equity buy -in" fees for all new "large" customers. Currently customers
who use 10,000,000 gallons per month are considered large customers.
11. Impose new capacity restoration subcharges for any customers taking more
water than specified in contracts.