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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Finance Officer |
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PRESENTER(S): |
Andres Colman, Regional General Manager Salt Lake Service Unit |
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Dean Klebenow, Manager of Vehicle Performance Salt Lake Service Unit |
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Daniel Locke, Facilities Utilities Project Administrator |
TITLE:
title
Contract: Compressed Natural Gas (CNG) Fuel for Depot District (Summit Energy, LLC)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute a 5-year contract and associated disbursements with Summit Energy LLC in the not to exceed amount of $4,610,429.00.
BACKGROUND:
The attached contract is for the supply of natural gas to the Authority’s compressed natural gas fueling facility. It is a requirements contract for which competitive unit price proposals were obtained for a five-year period. Based on the Authority’s five-year anticipated needs, the not-to exceed value of the contract is $4,610,429.00
DISCUSSION:
The current contract with Summit Energy expired on June 30, 2024. We are currently on a one-month extension. Using a broker has shown a savings of close to 50% compared to the public utility provider. This contract has performance obligations that allow us to receive the efficiencies while mitigating the risk associated with market fluctuations.
CONTRACT SUMMARY:
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Contractor Name: |
Summit Energy LLC |
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Contract Number: |
24-03835AB |
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Base Contract Effective Dates: |
July 31, 2024-June 30, 2029 |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$4,610,429.00 |
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Procurement Method: |
Request for Proposal |
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Budget Authority: |
SLSU 2024 Operating Budget |
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ALTERNATIVES:
Request a one-year extension from Summit energy until we are able to transfer our account to Dominion July 1st of 2025 which would be significantly more expensive for UTA.
FISCAL IMPACT:
CNG Fuel is included in the Salt Lake Service Unit’s 2024 operating expense budget and is included in the long-range financial plan operating expense base.
CNG Fuel 2024 $708,300.00
CNG Fuel 2025 request $731,320.00
CNG Fuel 2026 request $755,088.00
CNG Fuel 2027 request $779,628.00
CNG Fuel 2028 request $804,966.00
CNG Fuel 2029 request $831,127.00
ATTACHMENTS:
Contract