Lake County, IL
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File #: 22-1248    Version: 1 Name: Natural Gas Transportation and Delivery Services
Type: resolution Status: Passed
File created: 8/29/2022 In control: Public Works, Planning & Transportation Committee
On agenda: Final action: 9/13/2022
Title: Resolution authorizing a contract with Constellation NewEnergy Gas Division, LLC Louisville, Kentucky for Natural Gas Transportation and Management Services in an annual estimated amount of $709,070.95.
Attachments: 1. Vendor Disclosure Statement.pdf, 2. 220825 Tradition Energy - Lake County Illinois - Natural Gas Procurement Recommendation, 3. Bid Results 8 25 22
Title
Resolution authorizing a contract with Constellation NewEnergy Gas Division, LLC Louisville, Kentucky for Natural Gas Transportation and Management Services in an annual estimated amount of $709,070.95.

Staff Summary
* The current term for the County's natural gas contract is set to expire on September 30, 2022, therefore, staff worked with the County's energy consultant, Tradition Energy, to conduct a bid and secure pricing for natural gas.
* An invitation to bid was extended to eleven potential service providers and natural gas rates were received from three vendors ranging from an annual cost of $709,070.95 to $847,939.98 for a 36-month contract.
* Based on the evaluation criteria set forth in the Invitation for Bid, Constellation NewEnergy Gas Division, LLC is the lowest responsive and responsible bidder for Lake County.
* Based on the fact that natural gas rates are a spot commodity, Tradition Energy recommended securing a fully fixed price for 36-48 month range to insulate from further volatility and hedge against the material risk of prices moving higher.
* The contract allows for flexibility and allows for continual monitoring of the market to renegotiate with existing vendor or issue a new bid.

Body
RESOLUTION

WHEREAS, the current term for the County's natural gas contract is set to expire on September 30, 2022, therefore, staff worked with the County's energy consultant, Tradition Energy, to conduct a bid and secure pricing for natural gas; and

WHEREAS, in accordance with Section 33.036 of the Lake County Purchasing Ordinance, Bids were called for by publication for Natural Gas Transportation and Management Services; and

WHEREAS, an invitation to bid was extended to eleven potential service providers and natural gas rates were received from three vendors ranging from an annual cost of $709,070.95 to $847,939.98 for a 36-month contract; and

WHEREAS, based on the fact that natural gas rates are a spot commodity, Tradition Energy recommen...

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