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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 5/24/2016
ALL
Item Creation Date: 4/20/2016
FIN-Natural Gas Supply Agreement 1st Amendment
Agenda Item#: 10.
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| | | | | | | | Summary:
ORDINANCE amending Ordinance Number 2013-0017 (Passed by City Council on January 9, 2013) to increase the maximum contract amount to an agreement between the City of Houston and CENTERPOINT ENERGY SERVICES, INC to provide Natural Gas to the City of Houston - $10,000,000.00 - Central Service Revolving Fund |
| | | | | | | | Background:
The Finance Department recommends that City Council approve an ordinance to increase the maximum contract amount from $19,000,000.00 to $29,000,000.00 for the contract between the City of Houston and CenterPoint Energy Services, Inc. to provide citywide natural gas supply.
The contract was awarded January 9, 2013 by Ordinance No. 2013-17 for a three year term with two one-year options with an initial maximum contract amount of $19,000,000.00 representing an estimate for the first three years i.e from 2013-2015 (averaged at $4.09 per MMBtu).
On September 18, 2015, the Finance Department exercised the first one-year option. On April 29, 2016, the Finance Department exercised the second one-year option. The term now ends on January 15, 2018.
Expenditures as of April 14, 2016 totaled $18,996,869. The cost of natural gas is currently budgeted at $6.2 million (based on $2.70 per MMBtu) in FY2017 for the period July 1, 2016 to June 30, 2017. The anticipated cost from July 1, 2017 to January 31, 2018 is approximately $3.8 million – for an additional total cost of $10 million for the balance of the term ending January 15, 2018.
It is recommended to approve increasing the maximum contract amount as stated above to ensure that the vendor continues to provide this vital service and represents an estimate for both one-year options.
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| | | | | | | | Prior Council Action:
Ordinance 2013-17; January 9, 2013 |
| | | | | | | | Amount of Funding:
$10,000,000.00 -
Central Service Revolving Fund (1002)
New maximum contract amount of $29,000,000.00 |
| | | | | | | | Contact Information:
Tantri Emo, Deputy Director Phone: 832-393-9076
Stephanie Emmers 832-393-8082
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| ATTACHMENTS: | | Description | Type | | RCA | Signed Cover sheet |
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