A Resolution of the City of Sunrise, Florida, approving two (2) “Directive Confirmation and Addendum” to the “All Requirements Gas Services Agreement” between the City of Sunrise and Florida Gas Utility; and providing an effective date. City Manager Richard Salamon. Timothy Welch, Utilities Director. Wendy Dunbar, Finance and Administrative Services Director.

471.41.21.532.505244 - Gas Purchases – Resale

Funding available in the FY 2018/2019 Adopted Budget.

Subsequent years' subject to budget approval.

The City has an opportunity to secure long term natural gas supply at a discount to market pricing through Florida Gas Utility (“FGU”) from the Municipal Gas Authority of Georgia (“MGAG”). The City has an All Requirements Gas Services Agreement (Agreement) with FGU that provides for natural gas supply management services. FGU required Members willing to commit to receiving the discounted gas supply from MGAG provide written directives to FGU in the form of two separate addendums to the Agreement.

Resolution 02-114-19-A was approved by the City Commission on January 8, 2019 authorizing the Finance and Administrative Services Director to execute the “Directive Confirmation and Addendum” (Directives) that were attached and made a part of the Resolution. Each Directive specified a quantity of discounted gas supply the City would be able to receive. During the final negotiation of the gas supply agreement between FGU and MGAG, MGAG was only able to offer reduced quantities of gas supply.

FGU accepted the reduced quantities of gas supply and allocated the reduced volumes among the Members who executed Directives. The Revised Addendums reflect the reduced quantities of discounted gas supply the City will be able to receive. 

As referenced in Section 28 (2) of the Agreement, authority is requested to allow the Finance and Administrative Services Director to execute the two revised addendums and any additional documentation in connection with the implementation of these gas supply arrangements by FGU.