Agenda Item: 8(c)
Prepared By: Jeffrey E. Poteet, General Manager, Water & Sewer Department
Business: Consent Agenda Item
Department: Water & Sewer
Subject:
Title
Approval of a Purchase Order Increase (Demand-Driven) in South Water Treatment Plant Electrical Costs in the Amount of $240,000 - Jeffrey E. Poteet, General Manager, Water & Sewer Department
Body
BACKGROUND:
The South Water Treatment Plant (SWTP) utilizes a reverse osmosis (RO) treatment process to convert brackish groundwater into potable water. Reverse osmosis is an energy-intensive treatment process that uses high-pressure pumps to force water through specialized membranes, resulting in significantly higher electrical consumption than conventional treatment methods.
To minimize operating costs, the City operates the North Water Treatment Plant (NWTP) as the primary production facility at approximately 6.2 to 6.5 million gallons per day (MGD), with the SWTP serving as a peaking facility to meet higher system demands or to maintain water service when the NWTP is temporarily offline for maintenance or unexpected outages.
Over the past 12 months, the SWTP produced approximately 10% more potable water than anticipated. The additional production increased both energy consumption and utility demand charges, resulting in electrical costs that exceeded the FY26 budget. As a result, the SWTP's FY26 electrical budget of $1,392,000 is projected to be approximately $240,000 short, representing an increase of about 17% over the budgeted amount.
Staff is request a budget amendment of $240,000 to cover the South Water Treatment Plant's projected electrical costs through the remainder of FY26. The increased operating costs have already been incorporated into the proposed FY27 operating budget to better align future appropriations with anticipated water production and associated electrical demand.
FUNDING SOURCE / FISCAL IMPACT:
The requested $240,000 budget amendment will be funded from available Water...
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