E29393.A1 – Amend Council Motion No. 2020-0116, passed on March 11, 2020, to increase the spending authority from $1,785,734.00 to $5,345,920.00 and to extend the agreement term from March 16, 2027, to March 16, 2031, for the purchase of electricity from Entergy, Texas Inc. for the Finance Department.
Specific Explanation:
The Director of the Finance Department and the Chief Procurement Officer recommend that City Council approve an amendment to Council Motion No. 2020-0116, passed on March 11, 2020, to increase the spending authority from $1,785,734.00 to $5,345,920.00 and to extend the agreement term from March 16, 2027, to March 16, 2031, for the purchase of electricity from Entergy, Texas Inc. for the Finance Department.
This award was approved by City Council on March 11, 2020, by Motion No. 2020-0116 for a seven-year term in the amount not to exceed $1,785,734.00. The increase of $3,560,186.00 will cover the increasing cost of electricity throughout the remaining term of this award and the extension of the term. This will ensure the continuation of service to city-owned and operated facilities, including street, traffic, and area lighting in areas North and East of downtown, including Kingwood and Lake Houston. Expenditures as of October 22, 2024, totaled $1,661,143.41.
Entergy, Texas Inc. is the sole electrical provider authorized by the Public Utilities Commission of Texas (PUCT) to provide electrical services in the “regulated” eastern portion of the state, which is outside of the jurisdiction of the Electrical Reliability Council of Texas (ERCOT).
This recommendation is made pursuant to subsection 252.022(a)(15) of the Texas Local Government Code, which provides that the purchase of electricity is exempt from the competitive requirements for purchases.
M/WBE Participation:
M/WBE Zero Percentage Goal Document approved by the Office of Business Opportunity.
Fiscal Note:
Funding for this item is included in the FY2025 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jedediah Greenfield, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division
Estimated Spending Authority:
|
Department
|
FY25
|
Out Years
|
Total
|
|
Finance
|
$508,598.00
|
$3,051,588.00
|
$3,560,186.00
|