HomeMy WebLinkAboutFIN-10-001 - ECNG Consulting Contract Extension
REPORT
REPORT TO:
Mayor C. Zehr & Members of Council
DATE OF MEETING:
January 18, 2010
SUBMITTED BY:
Dan Chapman, General Manager of Financial Services
& City Treasurer
PREPARED BY:
Jim Gruenbauer, Manager Regulatory Affairs & Supply, 3255
WARD(S) INVOLVED:
N/A
DATE OF REPORT: December 17, 2009
REPORT NO.: FIN-10-001
SUBJECT:
ECNG CONSULTING CONTRACT EXTENSION
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute an amendment to the Consultant Agreement
with ECNG Limited Partnership (“Agreement”) to extend the term of the Agreement for one year
from February 1, 2010 to January 31, 2011 for a reduced monthly fee of $10,800 instead of the
$12,000 fee (10% reduction); said agreement to be satisfactory to the City Solicitor.
BACKGROUND:
In 1998, the Utilities assumed a more proactive management of its natural gas affairs upstream
of the City. To implement this strategic initiative, the City sought and secured an energy
management consultant. ECNG has been the Utilities’ energy management consultant since
that time and has contributed to the significant successes of this initiative.
REPORT:
Based upon a continued high quality of advice and insight provided by ECNG, the Director of
Utilities and General Manager of Financial Services are recommending extension of the
Agreement to January 31, 2011, as provided in the Agreementby Mayor and Clerk in 2006.
ECNG has been apprised of the challenges facing the City in prudently managing its finances
under the current difficult economic conditions which are expected to continue into 2010. As a
sign of good faith and compromise in securing the remaining one year extension of the
Agreement, ECNG offered a 10% reduction to its monthly fee for advisory services.
It is expected that Utilities, with the coordination of Purchasing, will initiate in the spring of 2010
an Expression of Interest from qualified proponents, presumably including ECNG, to provide
advisory services for the procurement and management of natural gas supply to the City
beyond January 31, 2011 when the term of the Amending Agreement with ECNG, if deemed
acceptable, expires.
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FINANCIAL IMPLICATIONS:
The City will save $13,200 in 2010 from the advisory fee reduction.
COMMUNICATIONS:
None.
CONCLUSION:
N/A
ACKNOWLEDGED BY:
D. Chapman, General Manager of Financial Services
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