Title
Transport Gas and Electricity Services - Amendment (Ordinance S-49459)
Description
Request to authorize the City Manager, or his designee, to amend Agreement 135518 with Kinect Energy, Inc. to extend the contract and allow additional expenditures for energy purchases of electricity and compressed natural gas. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will have a total amount of $16,600,000.
Report
Summary
The City of Phoenix has over 3,000 active electric and natural gas accounts. Agreement 135518 with Kinect Energy, Inc. (Kinect Energy) provides rate analysis, negotiates the price of natural gas and electricity, facilitates the sale of renewable identification numbers, and audits energy invoices for accuracy. Kinect Energy has successfully provided these services under contract without incident.
Procurement Information
This item is exempt from Administrative Regulation 3.10 citing energy purchase.
Contract Term
The contract term will be extended for an additional five years, with a revised expiration date of Feb. 28, 2028.
Financial Impact
The initial authorization for this agreement was for an expenditure not to exceed $1.4 million. Previous amendments increased the authorization for the agreement by $11,928,000. This amendment will increase the authorization for the agreement by an additional $16,600,000, for a new total not-to-exceed agreement value of $28,528,000.
Concurrence/Previous Council Action
The City Council approved:
Agreement 135518 on July 3, 2012;
Agreement 135518 - Amendment (Ordinance S-41655) on May 13, 2015;
Agreement 135518 - Amendment (Ordinance S-42682) on June 22, 2016;
Agreement 135518 - Amendment (Ordinance S-43530) on May 31, 2017;
Agreement 135518 - Amendment (Ordinance S-44422) on April 4, 2018;
Agreement 135518 - Amendment (Ordinance S-44761) on June 20, 2018 and;
Agreement 135518 - Amendment (Ordinance S-47979) on Oct. 6, 2021.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation and Public Works departments.