Agenda 07/22/2008 Item #16E 5Agenda Item No. 16E5
July 22, 2008
Page 1 of 6
EXECUTIVE SUMMARY
Recommendation to approve an agreement to purchase natural gas from Peninsula
Energy Services Company, Inc., ( PESCO) and the installation of natural gas piping by
TECO Peoples Gas for the Main Government Complex.
OBJECTIVE: To obtain approval from the Board of County Commissioners to approve an
agreement to purchase natural gas from Peninsula Energy Services Company, Inc., ( PESCO) and
the installation of natural gas piping by TECO Peoples Gas for the Main Government Complex.
CONSIDERATIONS: Currently the Collier County Jail facilities on the Main Government Complex
utilize diesel fuel to operate the steam boilers. Staff investigated less expensive alternative fuels for
these boilers and is proposing to use natural gas. Not only will natural gas save money from a
consumption standpoint, but it will also burn much cleaner than diesel, providing for a longer life of
the boiler equipment and continuing with the County's "green" efforts.
Additionally, a natural gas supply to the boilers will provide a redundant fuel source and at no time
will the Jail be dependant on the use of natural gas. Diesel fuel will still be hooked up and available
to the boiler units with the flip of a switch should the need arise.
The current price of the #2 diesel fuel is $3.45 per gallon which equates to an approximate annual
cost of $241,000 to run steam boilers. The use of natural gas in place of the #2 diesel fuel oil will
equate to an annual estimated cost of $133,000, providing a savings to the County of approximately
$108,000 annually.
TECO Peoples Gas has taken the proposed Board of County Commissioners account to suppliers in
the region requesting bids to ensure the most competitive price for natural gas supply. The result
was the three bid submissions below:
Peninsula Energy Services $0.093 /therm
Florida Natural Gas $0.115 /therm
Infinite Energy $0.108 /therm
TECO Peoples Gas will install the gas line from U.S. Route 41 to the Jail Building and the Jail
Parking Garage, which houses the boilers for the New Jail Addition, at no cost to the County.
Facilities Management, through the use of existing mechanical bids, will then complete the piping to
each boiler unit at a cost of $8,510 (a payback of less than 1 month). PESCO will then provide
natural gas to the County at the quoted rate of $0.093 /therm.
FISCAL IMPACT: Currently funds for the purchase of diesel fuel are budgeted through the Collier
County Sheriffs Office and paid by the Collier County Board of County Commissioners. Natural gas
will be funded out of the same funding source. The cost for hookup to the boilers ($8,510) will be
funded out of the Facilities Management cost center (122240).
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
Executive Summary.
RECOMMENDATION: That the Board of County Commissioners authorizes the County Manager or
his designee to execute the Underground Facilities Notice for the installation of the gas line by
TECO Peoples Gas, and an agreement to purchase natural gas from PESCO.
PREPARED BY: John Clements, Project Manager, Facilities Management Department
Page 1 of 1
Agenda Item No. 16E5
July 22, 2008
Page 2 of 6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 16E5
Item Summary: Recommendation to approve an agreement to purchase natural gas from Peninsula Energy
Services Company, Inc., (PESCO) and the installation of natural gas piping by TECO
Peoples Gas for the Main Government Complex.
Meeting Date: 7/22/2008 9:00:00 AM
Approved By
Lyn Wood
Purchasing Agent
Date
Administrative Services
Purchasing
7/8/2008 2:19 PM
Approved By
Damon Gonzales
Interim Facilities Manager
Date
Administrative Services
Facilities Management
7/8/2008 2:35 PM
Approved By
Skip Camp, C.F.M.
Facilities Management Director
Date
Administrative Services
Facilities Management
7/8/2008 2:53 PM
Approved By
Mike Hauer
Acquisition Manager
Date
Administrative Services
Purchasing
71812008 4:66 PM
Approved By
Mike Hauer
Acquisition Manager
Date
Administrative Services
Purchasing
718/2008 4:56 PM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
719/2008 9:50 AM
Approved By
Laura Davisson
Management & Budget Analyst
Date
County Manager's Office
Office of Management & Budget
7191200810:00 AM
Approved By
John A. Yonkosky
Director of the Office of Management
Date
County Manager's Office
Office of Management & Budget
7/9/2008 3:57 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
County Manager's Office
71912006 5:17 PM
Commissioners
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Agenda Item No. 16115
July 22, 2008
Page 4 of 6
NATURAL G-AS SERVICE TERMS AND CONDMONS.,
TLe rl pplicant rancid or, tl-c rCVCrFa ^&LO 113,Cof "Cosinion") 10 11"o--lov ()as Sy,nan, far rInniral fil
tinder tIc clze;mfcmion indicated an 111.0 MYCRiC !436 Il.rUO 3Marr ins; 'n I,t- fp thawing tzorm, and in coniic'erm.o- of ilia C ompn', v',
UaTato lIt TO so rpiy nonioll, 11-S u CUStCoWL.
Oas tF i,,b- deliwmi !a C-UzCarwr at Ilk. clularie!e of it,- conlrarly's gv:; mz',-r nc:vin"the nit'.e ravwsc, side licronf, Inch
Motel cockc] ,:t.,l Dpel-,iod Vot•'.. Cc lorally.Ln-j- irlocLtnej On ct.-ounilzr's pruporr". tEla is,benczbf lelle
Iuntisied !rceofcTiulroo by CIMc,aner
r rnetzra at '
In, f-,Mp6a, I 'Itirt vo cuo '.a runt upun and ins'A on Cust-rimers p.,operty anyitcluircd gas wul-� IJ
glai Iona foe fomsiling Las lli5aid miernii, and In di lc!;. Or M','.QMise jIU-,,tT. toP0 as is frqLli rod ouisidic dic Inolditg •1•::e, gas pipc from the
Cwlipxly,.. 1,,LS 2i,.eln ou WILL Lnljadioi, lentf Malt! Ll MULOns G.!Ull ban•vied, uocrarod, ::rid ni-nin%alod lo, a perpetual right IF
in�rzsg nm' cBrCsli iliciato, noneby 'rmi"ed t0 Ilo- zcc girott rorp,,Iffatl All gm
ire. bem, the nu Sal side efsaIj meter at laocis, sioall be
naj- up,vacd, and m,iiaEaincd Sy Cusw=r m-it, seta ca!Sl Md -i*,
Cusiornarr.holl racliliz nmJ lwyF.ir all g•�.d•�A:vcmi in 1,7Manw; V;,,-wdjao to ileappIvIa-ile r.1tesliaw re'Aillptcul Filed 1`10661 1ILMIL,
SZIbiQC CULUM12Sie)U ll;LdUr the ttUlicabi,., Title
on.j cnodioOri hCrZOE NG 13174 ImIlaillont shall Lhaill't -,ba Ot
.0 I)V.z par gor.,iCc 710111 life Compton'. red D to anlIely
. , j slIell pt,'10 tl,C C(,MrMT,-,r thAaC',Iljl o*9L UIC11 Yt I -C
1.1 OZI)SIVIcier, Ilia fpcilil&A to hxko heart lied in sel-,iCC to ttlo Gkir-txIon tiny daposIT,, -.ill wally halt) by :ho (>rInTimly sihiU Iti
Eci-FrAet1l bw titeiaurrr at pyrne,r of IlLrLd jalp -nwo- of *jIvie ec5ls.
UNDEWMOUNT) T?ACTLMT-1;:
jilcs GIi Le -road- almre ure.Itinq InderIn anull ub.I!Lclas. Sp.=Unr
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UM[C_ n,,,,r71,es. orqlnuctwrc, CLU. :Ocala] on curivilicir'-1 p, . dz7oug-A cs ofinnallaiiin D.Flllccxs
jopo:lflr. 013&,Onla Gjjp.a be respncnblo for WUMLIV tad-'M :OC.jmli ml{'Wjdai UVoid h,,iI1f,CJ L'Al IIWY be 01 CUSINTISL' prapon", I:al lic. not
"Cilog to IOZMl LIVilhiON (Pawcr, T-;Cplioe, *,Vmor CaLle 7V camponrea t.L 'I and to in,lomnd-r mid held Cimlrsny h"rinlesE Far 9•
dimakwcs arising Out of cu'lonner a b1dom ID e, a,,, tae .1 1, in i t Et It i on a o L �;vict 1 0".1 7,03.28,
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lA1,NMU, •'ER-NI'S AND C O-NDrf ION S -UTLIC.kE Lu'r-.,-) N-VrujLi L G,15 st'likVICE:
Trix nqrcamerl is "at Cir trans.teralalc b% C II'slInit. VVit'-1111 I P -10' V'71:'oal, Cons:nit bY 'Ile COTi-.Tam%
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C-17MU, EMPLOVI-T.S, AIT
ef IMPX ir Cfl� :TS A I-T-L I A ITA CUMPANJE:�, k Fl`MJR',i, Dil, [ -L
BE LVB Ll-' I:OA -AJ<Y 1 'L1'CIDLNTA1., 7, ;TlIRECT. cTIPCTIAJ . COII,9F-QLT1tiT1AJ., I.'.XF- MPTARY OR MY111IT17V T
BTIT NO-, i,;r.v r7r) M. I -[VS cF &VENI-1 --s C.R. LO s OF PW.)iHI'.,*, EVrN IF THE !ONVIAN 17 HAS
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3' F FX AT)VIS F-1:-) 01 -' TIM 7 OS!; 'r) I I T.Ac, I fl, S b -1 e z t --o ,I c, I i ir. i -- a t 10 ".:, z f S e c L I. r.
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Ali ah;ol, 3cnjands, acbprA mid cwi5rs of*action v ltsocv,r nri.inn oj, Ofon --dined to re; aiacn pu-ii,JA •y ^ha dzilornialicd e ri ill,: :c -cane
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This am"acalent rv.ywel be o 11MI). L.qL Cr IrClflifiOd nXIWILI I by AnalSbUMC:63 SiMd by Ih... Complinvaild Clasluinor.
7kis a�rt'Cnwn!. !.hall aa 10vcruent Ly did I:wln r 'Im Spti�,d FLrka withcul agund it) prinGipios ofWullicis of
110x agmeniciA ocslhlills III- Unlirt bdi•con Ilia Pan jj,q %clok., and au Ipj,Mo,1a% any y.,rift-n Lr aial, prior or cooLempo�.Wnls
ilia nmilEn.
:'tephen, Y. Carn !jj, pl-,!: 2 Asir.
I Services 17i. ,c!r or
Agenda Item No. 16E5
July 22, 2008
Page 5 of 6
Naturall Gas Purchase Order
)ate: 066/04/2008
'ESCC:
Peninsula Energy Services Company, Inc.
P.O. Lox 960
Winter Haven, Florida 33882
Contact: Jeffrey Bates
Phone: (863)299 -7553
Fax: 1853) 299 -2946
entail: jbates @pescoeneray.con-
1. Location(s) Covered I3y This Purchase Order:
3301 Tarniami Trail East Naples_ i L 34112
CUSTOMER-
Guard Of County Commissiouers,.Collier t:ounty, Florida
P.O. Box 413016
Naples, FL 34192
Contact: ;, John cl• ,ne:,
Phalle: Y,, 23_9- 825 -1461
Fax :7- 9E1 -ooL,P
erlic "Ili: jo!lnclemen—..Sk --o1, i, j. e r-r,
,.o v. T). e 1:.
U11111ty Service # (s): TECO Peoples Gas
?.
Gas Supply Quantity.: The cluartity o' eras s.ald each Month to the Customer by Peninsula Energy
Services Company, Inc. (P =SCO) sha I equal the G3ustomer's monthly etas quantity consumptior
111C.,R lUn'd by the respective Loc;l Distribution Caillpany (LDC) during its normal Trion -lily me, ,
roa( -Eng process. Customer shall purchase its full gas requirements from PESCO during the entire,
form of this Purchase Order.
3, Price: Florida Gas Transmission, Z'_onet 3 index price: for the month of purchase, plus the
applicable LDC pass - through cost alloc7tion fur interstate pipeline transportation and fuel
etertion, plus $ 0.0930 per therm. A customer service charge of S5.DG per month
\vill be included in the tilling invoice.
4. Termf€ onevtraliCancellation: This Purchase Order shall remain in effect for •i year(s)
beginning ,at the start of transportation gas service. Unle.s cancelled by written noiare given by
either party 30 clays prior to the en& of the initial t:r rn, this Purchase Order shall be autornatically
extended for successive one- yearilerms. Eifl,er Party may cancel at the end of any successive one -
ycar tone by providing +mritten no':b o'r their intentlo9 to canool 30days }prior to'he en9 of that
successive one -year term. If Customer cancels this Purchase Order prior to expiration Df the Ternr,
Customer shall pay PESCO an amount agmil to one average month's invoice as a termination
�• Terms and Conditions: The Terni:s and Conditions srached to this Purchase Order are
Incorporated herein by reference and made a fear: hereof.
'or PESCO:
J i
ECO Partners Rpp: ~riC Cullin i
Huan] orculmly Cummiasioncrs, (:ullier Cnunly,F:uaid¢
By: X
Title: f V,,rc.LSin• e^cral aQ t'vj ce
D_reotol:
Agenda Item No. 16E5
1. Nsti ofSorvlcc: P�3Co shell seilanderrarortai :hl3morri, wild ti GusttrtershF.11put ha aarc'r° el e )atp zRf(zdM
Customer fz�l Was a! tiaa abo, Istec acr.Inr,. ;,.,. .r,-c.l s ;wcm. _hell b.c in aacCrdanoa with oppfcFt.,lo app -o'dF3��g•i$+pfftga
fnisrstate pipcl.-e (7mnsporw) andkr LDC,
2. Plrm 6aifvervt Fo., the purp7c8 of Lt{s Purees' r-rd ^r, Firrr: shall n&sn !hst F'_SGO stay irra^r:,- its delivery c•` gas tetP Deliv - . F'cint
fas deFinec bole.v) only to tha cxtcM sha: such t afvery, is n-a .,r:ntc:i by raascns a Fcrce Irlada,.l c.
3. Title and indemnification: PESGJ w'u rants thnil ct [he ime cf d: Le r PE59r --h al : -ve good a -id merdinniao c tt;'e to all nu Ural gas
sold and delivarad to thz Custcirrsc Title to tire -atLmd gas a>hali terms! -er rcr-t, a d Le di..cmed delivered by, PESCO to the Customor upon
cWlvary of this Gas at Trar!sper'a, s ZO,,Ie #3 In re pcalirg ao'.nd rf01 425309. CS 4p11, L9aun, Veman) or sL r 01-el ]Gil-.t vuteicl� the
State of Florida as PESCO ceL_m aces (the F,.= I +cry Frinl ) . - -cS of I' ,.CO, as _n riat!.iral ga.. prior co delivery to l:` t Customer, and the
Gustamrr as to natural y =s follo trig 1;II„ ry to t, e ;:u ton er, -hnl r errnrfy a ;d cic the they `.armless. from all su`s, acticns Betts
aroar:; ta.>.es foes, roya ties damages. Dist lass9s one experse , atmdng -,_:)m or cut of any adverse tide cairns cf any pemon or or4ity
v, Gn r -,�CCt to nbturaJ gas for • rhldh the indrmrifyirg n. rye h.cld -i : ;ic or c elms of s deemed to hold title hereunder. Suddect icsactien
763.213, Florida statutes.
4• No WarrantV: EXCEPT AS EXPRESSLY SET FORTH ABOVE, PESCO MAKES, AND CUSTOMER
RECEIVES, NO WARRANTY, EXPRESS, IMPLIED OR STATUTORY, AND PESCO SPECIFICALLY
DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
5, Llnr' rtationofLfability: weltherPartytothis Plrchased: dwa'T :oeliauietuPeo",',eiforanyd-ec„ ape .ra! Ccderrtal,
indirect or punitva damages arising f :um a a -each of [`,iF: Fi.rr.`a cetJrd.o-. PF!i ;CLt's liabi'il ?'r.;[h respa:ttn :his Pun,hase nfdo: is
specifi�alytim "ad to the dips;: tc_ b 'vveen the raas,:nnh prir.n rf Iopincing aov undefk erec natural gas and the pis e ot,.es'arai gas
IdentiEed in this Purchase Older.
G. forco t,faleure I t .: av,.ld that Ma c rn rerl n nl r Pelt, uno r`e, v illy rl .n pa It tc C-1-P/ out 's ob,`ignt ri undartl In
Purch.,i.. ()rdar 4excent fur rte olbllg&S :oil to mak- parmcrt, vvhr :n Oil t ,rr :nn .,I) igw rris o t. e Party : vokin.g the Force tlajrw,,� srdl
Le suapendad en Icng as lira Force Maieure e•,,. =. °,: centlnLI •a. For Ivajeure manes my e'da -t h,:pond titacuntrel of al parry vrlt:aI 1,3sutts
in ilia ra lu'n rf anme p2rforme ^ce und' r this pill 'ch Jr 6 orci •. I "Ir i, r•jl g Taut r.ct I motor to, : ;aata_e, strike cr labor dlf=c_Ily, eels tr rod
m6udirg hey mcancr, hcplral slo ns :a-id cl ef il/Callhi'l' ocurrrrn c s, c I trknrr. clo cit Lerrnsro gar, ricv, cN.9 disturt r r Ls,
by govem:ment. or court. orders. at cU :rlplle i „ <. With a,ly lay., Stuhrio, rr ur.lntinn or c •n. gaoerrimc ,tad addct.
7. gftlinn anti Payment PEaCn hall bl'1 cualux - er L'. ch rnu h o'tl e Iv 'ulal tiaS 3111 Sar :'Ices Iturrhascd rw the C tomrlr. Cllstomwr
shat nil ilt tlta'irtnun[ 1UC FGhCO In acrcrd_m.,e with _ _cJD r”' c �, F.ulda tlzlii. es. abc krl ^!t as thn ft ;da Promt ,'a•; mnnt nt. If the
Cuslo :rer fails to rcmft the amount due in occur Jan : :E with such pet Inter'": lem-s. Imen PEal`10 Ina y, n1 its opt on, ttaka arty of the to:- la,,ving
at;tiars; (a) suepene scirvicc n ;c, fr :tire de:N" nos lu I',-- Customer ib+ suspend cr terl °un2ra this Purchato i der, and r.: —�+if; zmy rand
all cl'kul legal -,'u equllaltl. r,r :rn.t'i..,. Wall DIE. to ", I crud i °ilh:.kl ul woceellings lc cclLct ar.ounts dlaa t•, .f firm T-.c r ;ustc ;m-r. Such
remedlas snall nc,t bi, Pxrrjrivn, I:ut rho I be wirula'.he.
0, Late Payment Fees: Shralld Custnlrinrtal to nsrrii the :.ill praymenffo r:- +lul'ci :I rs purc',a :,e] :tcer this P.irc ;iase.Orderw>hen rlua, a Isite
Payment cit"r3;e of the ;esscr ❑f per monitr, (ir the - mxbnum 390•me: by L v;, shall be astessad.
9. Taxal PESCO &,I)l ray, or cr use tc I;n p:-ftn a :I •.I:pfcr;,lr 13l, 'elaiec to Ihr: p r cliaSa and L'ars:,r,riatton of natcr it jor p or t., -.to
itollva ry by PESICO'I:i cvsleme r at tha Dolnrly Point !,..,cede r; II be responsiule tar Fa; nsnl of any ar:u all lax: Irri c,sefl urin^ tit
and a =r delivery of ges'o Custhme,r yr rtLrr r uch tai a im?c I rot u ^c[r, alp, crrentl, ri urrusp2cil•:ely. Cust�mera',all Gld•:Ida to
PESCO zny acpl:cabl' cer- Ifk:Elte o other ,.Iecuinnntnticn o sirs or use, :nx o,, mp:ion prin-io Ile n'I iaEor- 0; under :f, s Pul chase
Order. P SCO • "vlll collect upplicable sexes Lay from tlhr Custoatar s-id rclrit su:h :o the Ftnrica Department c' Revenue.
14. Credit: PF.6cc> may raqu ?.re at anv time, bsf; r and duuna the term J this F,_rcitase 0-der, orcdit aczrGr,rncnts trornlh,., Cualr..•rior that
se c,:re tea C Ziameraccocntw1th PESCG. The c.cedil ;r 1na::nler., I lay Inol,.r'o a cash dEprrlt, Lend or o arguarc.:ni'y W paymnirtfrom
a third party; a'ctter of credll or ather form of security mquin :a by PESCO. If such c-cdIt arrange.monta are rl pravid =d by the Custri it
PESCO, at Its option, may susuend rI Lerwin atia Cris P•.rdiiiisc Card er. -
11. Assfanrnant and Transfer: Thls Purchase Crcer, std _rny 'tights, Illle, Inierasls of cbngaflc,rs herein or hera,.nvlor, may I;e F.ssigned or
trcrlSferrCd byPFtNCO and sha'i be binding u[c and inure :n t e Geri aflt or the successors, asslgns and trapsfarees. This P +rchase Order
nay be assigned ortrans }erred by the fIw > :o;ce' n :'ly upon vinL'e'r nhCce ic, PESCO recedvad at' east 15 cays prior tot T.ra assgirrnnt arc"
unlylrtheassignceor. ran, famestilllrlxprrs O,ass,une.Inavritin7 IuCustvat srligslirns ,,rderthisPurrhaserJrewand
�. kna•, ho' geF•.: 3C0' st ightscederS...iio•,10herzcr.'I' tie, F' urrha- c; Fr ieder.)AbeuincingliolandI.._x,I to the b.,IrCftofthe
pem�.L'te rl ricrossars, a signs and 7ansferaes W PEf;C7 arid the _'Ustantell
12 Ne6ces: ,411 ce•rr- municatiCns raLh rr- speul td Geis Furitnae Clnier shaall br, sort ��the addresses on :ha front: of :nfs ccrumzat or ern'
olirer aJ ,rt, dasignoted by a DOLLY. Lllitng al Ll Fay rte t. ltc. Ices 11 jy ,r iarrt to alto her tle '(7natod ad Fos ;.
a$, Disputes: In the event 0' iltlga JOn p, mrwr wcxocaing b- nJ,.errn tn, pnrrl s art ilrlg ou of 1h is fruchi sa Oi per or mattes -o related I, L'rerui
Te pre vine, nnf'.y theradn ma, raco 'er I'ea n Iblc el': err J s h :es.,nd cc.M, rrm ,Y,o c ter party.
14. Governinq L359a ;Rules and Re iTuiafiansi. Tii� Puri trice Or-'r <,I his ccna rue i n acr_j ccA v -1 r .r .aW rift ice [•i r pride,
Mtho_L raid fn r;s .-hrire at law n_Ic<: El.. I!-(:. tnrri 1 and cond "ti m3 ,.f ;hs rn,pec5ve ?_CC's Fr-; Tal Ih, _.: a't ^rxnutu rearm Rrre ba t me.