DATE: September 27, 2016
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Agreement with the State Department of General Services to Provide
Natural Gas to the County
RECOMMENDED ACTION(S):
TITLE
1. Make a finding that it is in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 under the "agreement with a federal, state, or local governmental agency" exception for the State of California Department of General Services Natural Gas Services Program to provide natural gas for County non-core natural gas accounts.
2. Approve and authorize Chairman to execute a retroactive agreement with the State of California Department of General Services Natural Gas Services Program for the period of July 1, 2016 to June 30, 2017 to provide natural gas for County non-core natural gas accounts.
REPORT
The California Public Utility Commission allows non-core users of natural gas (more than 250,000 therms per year) the ability to obtain natural gas from independent gas suppliers and use the gas utility companies solely for transportation purposes. The downtown jail central plant and University Medical Campus (UMC) central plant, both non-core accounts, each exceed 250,000 therms per year and are eligible to procure natural gas from independent gas suppliers instead of the local utility company. The County has been purchasing natural gas from the Department of General Services (DGS) since January 1, 2006 for the downtown jail central plant. The UMC campus was added to the DGS agreement on September 1, 2010 when the County resumed responsibility for the UMC. Approval of the recommended actions will allow the County to continue purchasing natural gas from DGS retroactively from July 1, 2016 through June 30, 2017.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended actions, the County will need to find another means fo...
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