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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): |
Todd Mills, Director of Supply Chain |
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Andres Colman, Regional General Manager Salt Lake Business Unit |
TITLE:
title
Change Order: CNG Fuel for Depot District - Contract Extension (Summit Energy, LLC)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Ratify executed 1-year extension for contract #18-2549-1 with Summit Energy in the amount of $535,000 and authorize the Executive Director to execute the associated disbursements.
BACKGROUND:
In 2018 UTA posted a Request for Proposal solicitation for Compressed Natural Gas (CNG) to be used to fuel the Salt Lake Business Unit CNG bus fleet for revenue service. Summit Energy was awarded the contract and has been providing CNG to the new Depot District fuel station since its’ construction.
DISCUSSION:
The current contract with Summit Energy expires on June 30, 2023. Staff is requesting a 1-year contract extension through June 30, 2024 during which time we will work with Dominion Energy to switch our fueling source to Dominion going forward. The next available cycle for Dominion Energy to purchase additional shares to meet our demand is January - March 2024 at which time we will issue a letter of intent, followed by a contract execution in May 2024, and service beginning July 1, 2024.
CONTRACT SUMMARY:
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Contractor Name: |
Summit Energy, LLC |
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Contract Number: |
18-2549-1 |
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Base Contract Effective Dates: |
May 9, 2018 - June 30, 2023 |
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Extended Contract Dates: |
July 1, 2023 - June 30, 2024 |
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Existing Contract Value: |
$3,960,709 |
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Amendment Amount: |
$535,000 |
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New/Total Contract Value: |
$4,495,709 |
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Procurement Method: |
Request For Proposal |
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Budget Authority: |
SLBU Operating Expense |
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ALTERNATIVES:
CNG buses would have to be driven to Dominion Energy’s fuel station at 1140 W. 200 S. to refuel.
FISCAL IMPACT:
CNG Fuel is included in the Salt Lake Business Unit’s operating expense budget.
ATTACHMENTS:
Exhibit B: Transaction Confirmation for immediate delivery (extension)