REQUEST FOR PROPOSAL CITY OF PORT ARANSAS GAS DEPARTMENT FOR NATURAL GAS SUPPLY. RFP # Gas

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1 REQUEST FOR PROPOSAL BY CITY OF PORT ARANSAS GAS DEPARTMENT FOR NATURAL GAS SUPPLY RFP # Gas Issue Date May 1, 2017 Questions Due Thursday, May 25, 2017 by 3pm Due Date & Time for Proposals Friday, June 9, 2017 by 3pm Public Opening & Reading Friday, June 9, 4pm Location of Bid Opening Port Aransas City Hall Council Chambers 710 W. Avenue A Port Aransas, TX City of Port Aransas 710 W. Avenue A Port Aransas, Texas (361) Facsimile (361)

2 Contents SECTION 1 INTRODUCTION... 3 General Information... 3 Natural Gas Requirements... 3 Pricing... 4 SECTION 2 CALENDAR OF EVENTS... 5 Schedule... 5 Award Process... 5 SECTION 3 PROPOSAL REQUIREMENTS... 7 RFP Proposal Requirements... 7 SECTION 4 INQUIRIES; RESPONDENT QUESTIONNAIRE; MISCELLANEOUS... 9 Inquiries... 9 Respondent Questionnaire... 9 Miscellaneous SECTION 5 TERMS AND CONDITIONS General Specific provisions to be included in Contract EXHIBIT A HISTORICAL NATURAL GAS USAGE (MMBtu) City of Port Aransas Volumes

3 SECTION 1 INTRODUCTION General Information This RFP is a solicitation for Proposal and is NOT a Contract or an offer to Contract. Respondents are cautioned to read the information contained in this RFP carefully and to submit a complete response to all requirements and questions as directed. By submitting this Request for Proposal ( RFP ), the City of Port Aransas ( City ), a Local Distribution Company ( LDC ) that is owned and operated by a municipal government, is seeking sealed proposals ( Proposal ) from natural gas suppliers to supply natural gas ( Services ) to the City. The natural gas supply will be delivered to the Purchase Point ( City Gate ) located on Mustang Island, on State Highway 361. Where an existing meter station is connected to a transmission pipeline, both belonging to SouthCross Energy, 1717 Main Street, Suite 5300, Dallas, TX Your company s sealed Proposal should include the price, terms, and conditions under which you are willing to provide an uninterruptible supply of natural gas to the City Gate for redistribution to the City pursuant to the terms of this RFP. The City anticipates that based on its review and evaluation of the sealed Proposals received pursuant to this RFP, it will select a service provider ( Respondent ) and execute a contract ( Contract ) pursuant to which the Respondent will render the Services to the City, in accordance with terms and conditions set forth in the Contract and this RFP. Natural Gas Requirements 3 The primary use of natural gas will be to provide gas service to the end users of the City customers. The most recent full twelve-month fiscal year usage was 86,122 MMBtu s. The most recent five (5) year usage history is shown in the attached Exhibit A.

4 Pricing Index: shall mean the price posting as first published each month for the Federal Energy Regulatory Commission Southeast Natural Gas Texas-Houston Ship Channel. Fixed: shall mean a constant price for a portion of the City s monthly natural gas requirements for all or a portion of the Contract term. 4

5 SECTION 2 CALENDAR OF EVENTS Schedule The schedule for the RFP process is provided below. The City may revise this schedule at any time in its sole discretion and, upon doing so, will provide prompt notice to those respondents still under consideration in the RFP process. All Proposals must be clearly marked SEALED PROPOSAL FOR NATURAL GAS SUPPLY and returned to the City Secretary's office prior to the Due Date & Time for Proposals. Issue Date May 1, 2017 Questions Due Thursday, May 25, 2017 by 3pm Due Date & Time for Proposals Friday, June 9, 2017 by 3pm Public Opening & Reading Friday, June 9, 4pm Location of Bid Opening Port Aransas City Hall Council Chambers 710 W. Avenue A Port Aransas, TX Award Process An award for the goods and services specified in this RFP will be made following a procedure using competitive sealed Proposals. Proposals will be opened publicly to identify the names of the Respondents, but will be afforded security sufficient to preclude disclosure of the contents of the Proposal, including prices or other information, prior to award. After opening, an award may be made on the basis of the Proposals initially submitted, without discussion, clarification, modification, or negotiation with any of the Respondents or, at the City s option, the City may discuss or negotiate all elements of the Proposal with selected Respondents. 5 For purposes of negotiation, a competitive range of acceptable or potentially acceptable Proposals may be established comprising the highest rated Proposal(s). Further action on Proposals not included in the competitive range will be deferred pending an award, but the City reserves the right to include additional Proposals in the competitive range if deemed in the best interest of the City. The City reserves the right to reject any and all Proposals and to waive any and all formalities as deemed to be in the best interest of the City, with or without cause,

6 including but not limited to, those received after the deadline set forth above, that otherwise fail to comply with the procedures and requirements set forth in this RFP or those that the City believes contain excessive pricing, and to re-solicit for Proposals. 6

7 SECTION 3 PROPOSAL REQUIREMENTS RFP Proposal Requirements Date of Initial Delivery of Services to the City: October 1, 2017 Contract Term: the City is seeking a five (5) year term to begin on the initial date of delivery October 1, 2017, to September 30, 2022, with the option where it may be amended and assigned from time to time on a year to year basis thereafter. Proposal Pricing Specifications: Index price per MMBtu and fixed price adder per MMBtu. The adder should include: i. a fixed price for all transportation and balancing costs to the Delivery Point indicated below; and ii. all fees and service charges. Taxes should not be included, the City is exempt. The City is seeking a supplier that will provide full natural gas requirements at first of the month pricing. Option to Convert to Fixed Price: During the term of the Contract, the City has the option to purchase all or a portion of the Contract quantity at a mutually agreeable fixed price. The price will be based on the New York Mercantile Exchange (NYMEX) adjusted for the market index, Southeast Natural Gas Texas-Houston Ship Channel basis plus the fixed price adder and will be for one or more of the months remaining in the Contract term. Delivery Point: the City Gate is located 5.55 miles northeast of Park Road 22, Corpus Christi, TX on the northwest side of State Highway 361 (Latitude: 'N Longitude: 'W). 7 Sealed Proposal Submittal: all sealed Proposals must be received on or before due date and time above. Please submit one signed original of the Proposal and an electronic version on CD in Microsoft Word or Excel format by US Postal Service or overnight courier to:

8 City of Port Aransas Attn: Irma Parker, City Secretary 710 W. Avenue A Port Aransas, TX

9 SECTION 4 INQUIRIES; RESPONDENT QUESTIONNAIRE; MISCELLANEOUS Inquiries All inquiries concerning this RFP should be submitted in writing electronically to Mitchell Ortiz at prior to 3:00 PM CST, May 25, All such inquiries and corresponding answers will be posted on the City Website (Public Notices) as addenda to this RFP, located at no later than 5:00 PM CST, June 02, Respondent Questionnaire Respondents are requested to submit a complete response to each of the below-listed items. Responses should be brief and submitted as an attachment to your proposal package. Feel free to us a separate page(s) if needed. Company Profile: 1) How many years in Business? Years: Months 2) Type of Operations: (please check) individual partnership corporation 3) If, requested by the City, you agree to provide a copy of your company s audited financial statements for the past two (2) years: (please check) YES NO 4) Provide any detail of all past or pending litigation or claims filed against your company that would affect your company s performance under a contract or agreement with the City. (add a separate page if needed) 9

10 5) Provide a customer reference list of no less than three (3) organizations with which Respondent currently has contracts with and/or has previously provided a natural gas supply of equal type and scope within the past five (5) years. Company Name Contact Person Telephone # Description of products and services provided Length of business relationship Company Name Contact Person Telephone # Description of products and services provided Length of business relationship Company Name Contact Person Telephone # Description of products and services provided Length of business relationship Reference #1 Reference #2 Reference #3 6) Is your company currently in default on any loan agreement or financing agreement with any bank, financial institution, or other entity? (please check) YES NO If yes, specify the date(s), details, circumstances, and prospects for resolution: 7) Contact for your company s proposal to this RFP? Name / Title: Address: 10 Telephone / Fax number: Mailing Address:

11 Miscellaneous This RFP does not represent a commitment by the City to do business with any offeror. Nothing set forth in this RFP is binding on the City as any terms and conditions related to the Services contemplated by this RFP will be set forth in a definitive Contract to be executed by the City and the selected Respondent. The City may, in its sole discretion, elect not to award a Contract pursuant to this RFP. The City will not be liable for any costs incurred by offer or in responding to this RFP. By submitting a Proposal, the offeror acknowledges that it has read this RFP and agrees to be bound by its requirements. 11

12 SECTION 5 TERMS AND CONDITIONS General The Respondent chosen by the City to provide the Services shall enter into a Contract with the City prior to delivering the Services. The Contract will be in form and content satisfactory to the City in all aspects and will contain all provisions set forth in this RFP ( RFP Terms ), unless otherwise agreed by the City. If Respondent takes exception to any RFP Terms, Respondent shall submit a detailed written explanation of such exceptions as part of its Proposal. Respondent s exceptions will be reviewed by the City and may result in disqualification of Respondent s Proposal as non-responsive to this RFP. If Respondent s exceptions do not result in disqualification, the City will consider such exceptions when evaluating Respondent s Proposal. As part of its Proposal, Respondent shall include its Contract draft which must clearly indicate that: (i) this RFP, Respondent s Proposal and the RFP Terms (collectively, RFP Documents ) are all material parts of the Contract; and (ii) the RFP Documents will prevail in the event of any inconsistency between the RFP Documents and any other provision of the Contract. Prior to submitting its Proposal, Respondent will sufficiently modify its proposed Contract form to fully incorporate the RFP Documents and to eliminate any inconsistency between the RFP Documents and other provisions in the Contract. When submitting its Contract draft to the City, Respondent shall also include either: (i) a redlined/tracked changes version of the Contract reflecting the inclusion of the RFP Documents; or (iii) a cross-reference guide clearly identifying where in the Contract each of the RFP Documents has been incorporated. 12 Specific provisions to be included in Contract The Contract shall be in effect during the period of the 1 st of October, 2017 to 30 th of September, 2022, and shall continue on a year to year basis thereafter unless terminated on not

13 less than ninety (90) days written notice given by one of the parties to the other, provided that any termination shall occur at the end of the month. 13

14 EXHIBIT A HISTORICAL NATURAL GAS USAGE (MMBtu) City of Port Aransas Volumes FY 2016 FY 2015 FY 2014 FY 2013 FY 2012 JAN 12, , , , , FEB 9, , , , , MAR 9, , , , , APR 6, , , , , MAY 5, , , , , JUN 5, , , , , JUL 5, , , , , AUG 4, , , , , SEP 4, , , , , OCT 5, , , , , NOV 7, , , , , DEC 9, , , , , TOTAL 86, , , , ,

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