SUBJECT/RECOMMENDATION:
Title
Approve an increase to Purchase Order No. 19000957 with Chesapeake Utilities Corp d/b/a Marlin Gas Services, LLC, in the amount of $115,000, to provide portable natural gas service and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Marlin Gas Services provides portable compressed natural gas (CNG) tanks to serve customer locations that currently do not have a permanent gas main installed. Since March 2019, Clearwater Gas System (CGS) has utilized Marlin CNG tankers to serve the Del Webb subdivision as this residential neighborhood is currently not connected to our distribution system. The original purchase order was approved in March 2019 at $40,000. The City Manager approved an increase of $60,000 in August 2019. Subsequently, the City Council approved an increase of $140,000 in September 2019.
The reason for this next increase is to serve the following items:
• Continue to provide portable CNG to the Del Webb subdivision. CGS still needs to extend our distribution main approximately one mile, along Tower Rd (aka Bud Bexley Parkway), to serve the Del Webb community. Other utility contractors working on Tower Road have prevented CGS from installing our gas distribution lines to the entrance of the subdivision. Therefore, we have experienced delays installing our distribution main. The goal is to have the permanent gas line extended to the Del Webb subdivision by October 2020.
• To provide emergency CNG backup services for the US Highway 41 road widening project in Pasco County. CGS has a one-way feed of gas supply that serves approximately 1,800 customers downstream of a future road construction project along US Hwy 41, just south of State Road 52. If a contractor hit’s our gas line, we may potentially loose gas pressure, resulting in the loss of all customers downstream of the hit. If this happens, it will require gas technicians to manually shut-off of each meter account and re-initiate services once the repair is made and line pressure is restored.
• Funds available for any future emergency portable gas requirements within the CGS Distribution system.
With this increase, the new PO total will be $355,000.
APPROPRIATION CODE AND AMOUNT:
Funds are budgeted and available in 4232078-531300
USE OF RESERVE FUNDS: N/A