Title
***REVISED ITEM (SEE ATTACHED MEMO)*** Additional Expenditures for Transport of Natural Gas - Kinect Energy (Ordinance S-44422)
Description
Request to authorize the City Manager, or his designee, to extend the current Contract 135518 with Kinect Energy and to provide additional expenditures under the contract for transport of natural gas and management of energy services. The additional amount of $5,100,000 is needed for the extended term of the contract, and the revised aggregate value will not exceed $10,463,611. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The agreement with Kinect Energy is used to procure natural gas for transport gas accounts and provide energy management services. The vendor provides utility rate analysis, negotiates purchase of natural gas and sale of Environmental Protection Agency Renewable Identification Numbers. The vendor works with the most qualified suppliers to ensure their reliability, competitive pricing and financial strength, as well as consolidating energy-related billing.
Procurement Information
In accordance with AR 3.10, the normal procurement process was waived as the result of a Determination Memo citing the unique nature of the services that require a specific vendor for safety, consistency and training. The service Kinect Energy provides is specialized, and the City's daily operations would be disrupted if a new contract was bid and awarded to a new vendor.
Contract Term
This contract will be extended for an additional contract year, from March 31, 2018 to Feb. 28, 2019, and provides four contract option years in one year increments with a maximum extension date through Feb. 28, 2023.
Financial Impact
The additional contract amount of $5,100,000 is needed for the extended term of the contract, and the revised aggregate value will not exceed $10,463,611. Funds are available in various departments' budget.
Concurrence/Previous Council Action
Contract 135518 was approved by the City Council on July 3, 2012.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.