CITY COUNCIL AGENDA ITEM
Memo Date: April 8, 2024
Agenda Date: June 4, 2024
Prepared By: James Mitchell, Water Treatment Manager
Through: John A. Walsh, P.E., Utilities Director
Requested Action:
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To Approve a Resolution Amending the FY24 Budget (BAF#24-079-T) in the Amount of $310,121.00 for Duke Energy Services; To Authorize the City Manager to Execute Contract Amendment #2 of the Duke Premier Power Contract upon Approval of the Final Contract Amendment Language by the City Attorney and the City Manager; To Authorize the City Manager to Pay $130,120.23 for Generator Services Rendered
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BACKGROUND:
The primary electrical utility provider for the Dyal Water Treatment Plant is Duke Energy. Due to a rate increase in early 2023, P.O. 81632 is projected to be $180,000.00 short. The rate increase was not known during the FY24 budget planning process.
Staff recommends a budget adjustment in the amount of $180,000.00 to adequately fund P.O. #81632 for the remainder of FY24. The budget adjustment is for anticipated rate increase shortfall as well as an additional unanticipated pro-active power expense.
In addition, currently the City of Cocoa and Duke Energy have an agreement to provide backup generator power at the Dyal Water Treatment Plant. On February 26, 2020, City Council approved a Sole Source Resolution and Executed a Multi-Year Premier Power Services Contract between the City of Cocoa and Duke Energy Florida, LLC (Duke) to provide generator power at the Dyal Water Treatment Plant.
After careful review by Staff with Duke Energy personnel, it was determined that the current power agreement does not adequately address pro-active power transition requests and the extra fuel and maintenance costs that Duke Power incurs as a result of this action. Staff has reviewed all proactive use impacts and is agreeable to an additional total payment of $130,120.23 for previous run time, fuel and maintenance costs to Duke Energy incurred over the...
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