DATE: November 25, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Water Management Director
SUBJECT:
title
Modification of Contract Demands Associated with Three Middle Tennessee Electric Membership Corporation (MTEMC) Transformers at the Water Reclamation Facility, City of Franklin Contract 2015-0402
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning actions by the City Administrator on behalf of the Board of Mayor and Aldermen concerning modification of contract demands for Meter No. 473688 at the Water Reclamation Facility.
Background
The Water Reclamation Facility (WRF) is served by MTEMC through eleven metered service points which are billed through five separate accounts. Three of the transformers utilized (1,000 KW, 750 KW, and 500 KW) are oversized for the current demands which result in large demand charges. It is planned to eliminate these transformers during the plant upgrades. In the meantime, MTEMC has agreed to significantly reduce the maximum demand for each transformer to 250 kW which subsequently will reduce the demand charges without having the City go through the expense of exchanging the transformers prior to construction of the upgrades.
Financial Impact
Based on estimations provided by MTEMC, the City may realize the following annual savings:
|
Transformer |
Estimated Annual Savings |
|
750 KW, Meter 473688 |
$23,000 |
Recommendation
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Staff recommendation not required for this item.