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County Administrator's Report 12. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning the First Amendment to the Agreement with the City of Pensacola for Interruptible Natural Gas Service - David W. Wheeler, CFM, Facilities Management Department Director
That the Board take the following action concerning the State of Florida County of Escambia First Amendment to Agreement with the City of Pensacola (d/b/a Pensacola Energy) and Escambia County for Interruptible Natural Gas Service:
A. Approve the State of Florida County of Escambia First Amendment to the Agreement with the City of Pensacola (d/b/a Pensacola Energy) and Escambia County for Interruptible Natural Gas Service that increases the Usage Charge from $1.99 to $2.99 per MMBTU for: 2935 North "L" Street, 1350 West Leonard Street, 357 South Baylen Street, and 201 South Palafox Street, establishing service, subject to the current City Rate Schedule GAF (Almost Firm Gas Transportation Service, Ordinance No. 28-11); and
B. Authorize the Chairman or Vice Chairman to execute all documents relating to the First Amendment to the Agreement, as required.
[Funding: Fund 001, General Fund, Cost Center 310207, Object Code 54301] |
| BACKGROUND: |
On March 5, 2015, The Board approved a one year contract with the City of Pensacola (d/b/a Pensacola Energy) at a fixed rate of $5.546 per MCF (thousand cubic feet). A component of this fixed rate includes a Usage Charge for fuel transportation, which is subject to an annual adjustment each October 1st based on the current Consumer Price Index (CPI). This charge of $1.99 MMBTU is increasing to $2.99 MMBTU; which will raise our fixed rate to $6.546 per MCF (thousand cubic feet).
Yearly the County enters into a contract with the City of Pensacola (d/b/a Pensacola Energy) for an interruptible gas service rate for the Main Jail, Sheriff Administration Building, Sheriff Special Investigation/Evidence Storage Building, Sheriff’s Old Garage, the M. C. Blanchard Judicial Building, and Escambia County Government Complex. The rate is based on the County’s volume of gas usage for these buildings, and is also based on the County’s ability to utilize its’ propane-air backup systems. Pensacola Energy purchases long-term strips of gas at competitive pricing in order to cover the basic needs of their customers, while the balance of their gas is purchased on the daily market and is subject to some price volatility.
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| BUDGETARY IMPACT: |
| Funding is available in Fund 001, General Fund, Cost Center 310207, Object Code 54301. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Contract has been reviewed and approved as to form and legal sufficiency by Kristin D. Hual, Assistant County Attorney. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| This recommendation is consistent with the Escambia County Code of Ordinances, Chapter 46, Article II, Section 46-44, Applications; exemptions; and Section 46-64, Board approval and threshold authority. |
| IMPLEMENTATION/COORDINATION: |
| Facilities Management Department will administer the contract. The contract involves coordination between Facilities Management and Pensacola Energy. |
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