LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
title
SITE LEASE AND NATURAL GAS SUPPLY AGREEMENT WITH EMERALD COAST UTILITIES AUTHORITY
end
RECOMMENDATION:
recommendation
That City Council approve the Site Lease and Natural Gas Supply Agreement between the City of Pensacola and Emerald Coast Utilities Authority (ECUA). Further, that City Council authorize the Mayor to take actions necessary to execute and administer this Site Lease and Natural Gas Supply Agreement, consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
end
body
HEARING REQUIRED: No Hearing Required
SUMMARY:
In November 2011, City Council approved a 10 year Site Lease and Natural Gas Supply Agreement with ECUA setting the terms for Pensacola Energy to construct and operate a CNG fueling and refueling station at 6672 Pine Forest Road. Once operational, ECUA began monthly payments to cover the construction costs of the station, as specified in Amendment No. 1 to the Agreement, of which payment was completed at the end of the 10 year agreement. The new agreement is for a term ending July 31, 2024 at which time it is anticipated that a new lease will be brought before Council to include a second station with term ending in 2024. Both parties desire to continue with Pensacola Energy maintaining and operating the station for the purpose of selling compressed natural gas (CNG) to ECUA at the dispenser and for Pensacola Energy to continue the lease of the public fueling station in order to sell CNG to the public and to provide backup fueling for both Pensacola Energy and City of Pensacola Sanitation Services and Fleet Management.
Pensacola Energy will pay a flat monthly rate of $1700, calculated as the percent of the public site estimated electrical costs, plus continue routine maintenance of the site. ECUA will pay a gasoline gallon equivalent (GGE) rate for their consumption.
PRIOR ACTION:
None.
FUNDING:
Budget: $189,100
Actual: $114,800
FINANCIAL IMPACT:
Funding is budgeted annually for routine maintenance of the CNG stations. Sufficient funds are available in the Gas Utility Fund’s Fiscal Year 2023 Budget to cover the flat rate monthly charge.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
12/7/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Darryl Singleton, Interim Pensacola Energy Director
ATTACHMENTS:
1) Site Lease and Natural Gas Supply Agreement
PRESENTATION: No end