Broken Arrow City Council
Meeting of: 06-20-2016
To: Mayor and City Council
From: General Services Department
Title:
title
Approval of and authorization to execute the Transaction Confirmation Renewal (first contract renewal) with Tiger Inc. for third party natural gas supply
End
Background:
Large-volume natural gas customers have the ability to negotiate their own gas purchases with non-utility suppliers (Third party) and pay Oklahoma Natural Gas (ONG) to transport the gas to the point of consumption. The City of Broken Arrow has 30 some accounts with ONG, six (6) that have usage amounts that qualify to purchase gas from a third party supplier other than ONG. Since 2006, the City has entered into contracts with third party Natural Gas suppliers for our qualifying accounts. These accounts include Main Place, the Public Safety Training Center, the Animal Shelter, the Maintenance Center building, the PD/FD Training Center, the Public Safety Complex and the Broken Arrow Community Center on Main Street.
In 2015, bid proposals were requested from 24 different natural gas suppliers. Five suppliers responded and the bid received from Tiger was identified as the most advantageous proposal by the consulting firm, Energy Strategies. The bid was awarded to Tiger Inc. for an annual contract, renewable for up to four additional periods.
It is time for the City of Broken Arrow to consider the renewal of the annual third party natural gas supply contract. As the terms of the contract remain the same, staff recommends approval of the first of four renewal periods of the Contract with Tiger Inc.
Based on historic usage, the City could save approximately $19,000.00 a year off ONG prices under this contract.
Cost: Annual savings over ONG prices
Prepared By: Lee Zirk, General Services Director
Reviewed By: Finance Department
Acting Assistant City Manager - ...
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