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County Administrator's Report 11. 9.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning 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 Agreement with the City of Pensacola (d/b/a Pensacola Energy) and Escambia County for Interruptible Natural Gas Service:
A. Approve the Agreement with the City of Pensacola (d/b/a Pensacola Energy) and Escambia County for Interruptible Natural Gas Service 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 Service, Ordinance No. to be determined); and
B. Authorize the Chairman or Vice Chairman to execute all documents relating to the Agreement, as required.
[Funding: Fund 001, General Fund, Cost Center 310207, Object Code 54301] |
| BACKGROUND: |
Pensacola Energy is offering this interruptible gas service rate contract for the Main Jail, Sheriff Administration Building, Sheriff Special Investigation/Evidence Storage Building, Old Sheriff’s 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.
The Ordinance No. on the Recommendation is currently showing "to be determined". The Almost Firm Service, Ordinance will be presented to the City Council for approval on August 18, 2015. The City will notify the County Attorney's Office of the Ordinance No. and a revised recommendation will be distributed.
This Agreement supersedes the existing Interruptible Natural Gas Service Agreement that was approved by the Board on March 5, 2015 between the City of Pensacola (d/b/a Pensacola Energy) and Escambia County for Interruptible Natural Gas. This new agreement is required to be executed due to an increase in the Usage Charge from $1.99 to $2.99 per MMBTU.
This agreement will commence once it has been fully executed by all parties and continue through March 31, 2016. The County's new locked in fixed rate of $6.546 per MCF (thousand cubic feet) will begin on October 1, 2015. Without a contract in place, these accounts would be classified as GC-1 (within city limits) or GC-2 (outside city limits). Current rates for these classifications are $15.92 per MCF and $16.93 per MCF respectively.
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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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