CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the applicable provisions of the Naperville Procurement Code and award a third extension to Contract 14-174, Natural Gas, to CenterPoint Energy for an amount not to exceed $229,385, and for a one-year term (requires 6 positive votes)
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works (DPW) assists in coordinating the purchase and delivery of utility natural gas to select City facilities. Contract 14-174 was awarded by the City Council in May 2014 for a two-year term with two, two-year options to extend. The awarded vendor, Center Point Energy Services, provides gas requirements and gas contract administration to the City for select sites. Specifically, Center Point Energy is responsible for buying, scheduling and transporting the natural gas to the City of Naperville.
Sites that are included with this contract are chosen based on gas usage. The buildings not included in this award are either too small and fall under the residential tariff, or in the case of some of our largest non-utility fund buildings, receive free natural gas under the City's franchise agreement with Nicor.
Center Point provides a "Build and Drain" program for securing natural gas for the City. The Build and Drain program purchases pre-determined amounts of incremental gas in non-winter months to be injected into storage for use when gas often costs less than in winter months (dollar cost averaging). This strategy is used to offset volatility during the winter months and take advantage of the historically lower prices in the summer/early fall months.
The City Council approved the first and second two-year extensions to Contract 14-74 in April 2016 and March 2018. There are no more options to extend.
DISCUSSION:
Approval of the award for Natural Gas Broker requires a Waiver of Section 1-9B-4 (Methods of Source Selec...
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