Title
Transport of Natural Gas and Electricity- Kinect Energy, Inc. - Amendment (Ordinance S-47979)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 135518 with Kinect Energy, Inc. to provide additional funding to the agreement for energy purchases for the City of Phoenix. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures included in this amendment will not exceed $3,726,000.
Report
Summary
The City of Phoenix has over 3,000 active electric and natural gas accounts. Agreement 135518 (Agreement) 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. Because of fluctuating market rates, yearly aggregates also fluctuate and additional pay authority is needed to maintain services through the term of the Agreement.
Procurement Information
This item is exempt from Administrative Regulation 3.10 citing energy purchase.
Contract Term
The agreement term will remain unchanged, ending on Feb. 28, 2023.
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 $8,202,000. This amendment will increase the authorization for the agreement by an additional $3,726,000, for a new total not-to-exceed agreement value of $13,328,000.
Funding is available in the Aviation and Public Works Departments' budgets.
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; and
Agreement 135518 - Amendment (Ordinance S-44761) on June 20, 2018.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Karen Peters and the Aviation and Public Works departments.