Laserfiche WebLink
MEMORANDUM 2021-21 <br /> DATE: June 7,2021 <br /> TO: Honorable Mayor Julie Moore Wolfe and City Council <br /> FROM: Scot Wrighton, City Manger <br /> Jon Kindseth,Deputy City Manger <br /> SUBJECT: Resolutions Authorizing Service Agreements for the Supply of Electricity and <br /> Natural Gas <br /> SUMMARY RECOMMENDATION: <br /> Staff recommends City Council authorize the City Manager to execute supply agreements for <br /> both electricity and natural gas for the City of Decatur accounts,when optimal pricing is <br /> received. <br /> BACKGROUND: <br /> The City of Decatur has been purchasing both electricity and natural gas from alternative <br /> suppliers for many years. In the next few months both electricity and the natural gas contract <br /> will expire and the City would like to secure new contracts most advantageous to the City. The <br /> City has also been working with other taxing bodies in Decatur to potentially jointly bid these <br /> aggregated needs, but City needs to be able to execute the new supply agreements when the <br /> pricing is the best. <br /> Due to the violability of energy costs,pricing received for both natural gas and electric is <br /> typically only good for 24 hours. There can be significant pricing swings on a daily and <br /> certainly a weekly basis. Staff has included preliminary pricing with this item,though it is dated <br /> from a couple of weeks ago. The City will receive final and best pricing again on Monday,June <br /> Vh. Staff may recommend that this pricing be accepted,or we may opt to reject that pricing and <br /> secure pricing again in a week or two. This resolution will authorize the City Manager to <br /> continue secure pricing until such time when we believe that it is the lowest it will be before final <br /> execution. <br /> Staff will provide a recommendation on Monday night based on the pricing received on Monday. <br /> INPUT FROM OTHER SOURCES: City staff and CQI, our energy consultant. <br /> STAFF REFERENCE: City Manager, Scot Wrighton or Jon Kindseth can address any <br /> questions related to this agreement. <br />