AGENDA CAPTION:
Title
Consider approval of Resolution 2015-148R, approving a contribution in aid of construction agreement with Amazon.com.KYDC LLC to provide for the City's financial participation in the cost of extending three phase radial feed electric service to Amazon's fulfillment center in San Marcos, Texas in the amount of $252,115; and declaring an effective date.
Body
Meeting date: October 20, 2015
Department: Public Services
Funds Required: $252,115.00
Account Number: N/A
Funds Available: N/A
Account Name: Annual Capital System Extension
CITY COUNCIL GOAL:
Recruit employers that will provide job opportunities for knowledge and skilled manufacturing workers
COMPREHENSIVE PLAN ELEMENT(s):
Economic Development, Goal 4, Develop program to support local business to encourage job creation and capital investment
BACKGROUND:
The City of San Marcos Electric Utility Rules and Regulations contain provisions for possible participation in a new customer's capital expenses related to extension of electric service to facilities to be served. The three pertinent sections are shown here:
B) 2. LARGE COMMERCIAL
Customer pays a non-refundable Contribution-In-Aid-of-Construction (CIAC) for all estimated line extension costs greater than $1500.00. The estimated cost is the total of all construction including labor, materials, engineering, right-of-way acquisition and clearing, and any other costs directly attributable to the extension.
Where it can be demonstrated that the expected annual revenues (derived from base rates, exclusive of fuel) to be paid by the prospective customer will generate the required margins to cover the total cost of constructing the extension, disregarding any allowance; the City may, at its option, extend service without an excess construction cost payment by the customer.
C. INDUSTRIAL SERVICE
The city will, through negotiations with a prospective Industrial customer, provide the nece...
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