Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING FINDINGS AND EXECUTING A CONTRACT AGREEMENT WITH CONSTELLATION NEWENERGY – GAS DIVISION LLC FOR THE PURCHASE OF NATURAL GAS In 2006, the City Council approved Resolution 06-0320 to switch to the SPURR Program for natural gas purchases. SPURR is a Joint Powers Authority established to increase the purchasing power of public agencies to reduce costs of natural gas supplied to those agencies. For over 15 years, the City has participated in SPURR to reduce the overall cost of natural gas purchased by MUD to produce electric power at the Regional Wastewater Control Facility’s (RWCF) Cogeneration Facility; and On October 19, 2023, SPURR notified staff that they would no longer provide natural gas commodity retail services. to align with other programs offered by SPURR, the JPA would instead use a competitive solicitation process to source retail service providers to their participants. In the summer of 2023, SPURR conducted a Request for Qualifications and Proposals (RFQP) for core (small usage) accounts. The RFQP for non-core (large usage) accounts was conducted in the spring of 2024. As a result of this RFQP, Constellation NewEnergy – Gas Division LLC (Constellation) was recommended on May 10, 2024; and Over the past three years, the RWCF used 95,000 to 150,000 therms of natural gas per year. This amount is less than in prior years when the usage averaged 75,000 per month. By purchasing natural gas from Constellation, the City will realize cost savings since the rates are expected to remain stable and there is no surcharge or tariff; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The City Council approves findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process for the purchase through a cooperative purchasing agreement:
SPURR conducted public solicitation for a Request for Qualification and Proposals to determine who to recommend as a provider to their participants.
Procurement staff reviewed the RFQP and determined it meets the City’s purchasing requirements.
Constellation natural gas customers are offered several pricing plans including a balanced portfolio, which is similar to the terms that were offered by SPURR, a joint powers authority that conducts complex procurements for schools, colleges, and other public agencies.
The purchase of natural gas through Pacific Gas and Electric (PG&E) involves volatile pricing scenarios.
By purchasing natural gas through Constellation, the City will realize a stable price.
The City Manager is hereby authorized to execute a three-year agreement with Constellation NewEnergy – Gas Division LLC and is also directed to execute all other applicable agreements the same, copies of which are attached as Exhibits 1, 2, & 3 and incorporated by this reference.
The City Manager or designee is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED August 20, 2024 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton