Broken Arrow City Council
Meeting of: 06-03-2019
Title:
title
Approval of and authorization to execute a Transaction Confirmation Renewal (fourth 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 approximately 30 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.
Staff recommends approval of the fourth of four renewal periods of the Contract with Tiger Inc.
Cost: Annual savings over ONG prices
Funding Source: Various operational accounts
Requested By: Lee Zirk, General Services Director
Approved By: City Manager Office
Attachments: Transaction Confirmation # 6, 4th term renewal
Recommendation:
recommend
Approve the Transaction Confirmation Fourth Renewal with Tiger, Inc., and authorize its execution
end