Subject
Date - Page 1

metro wastewater reclamation district

MEMORANDUM

TO:Wendy Anderson, Operations EngineerDATE: April 13, 2012

FROM:Marsha Casteel, Purchasing Officer

SUBJ:Request for Proposal Summary B-10099

Natural Gas Supply and Capacity Management Services

Request for Proposals for the Metro District's natural gas supply and capacity management services requirements were opened and reviewed on April 11, 2012. Irecommend that a contract be awarded to the onlyresponsive bidder, Tiger, Inc. I further recommend that the Board of Directors approve to award this contract as soon as possible in order to take advantage of the all-time low prices on natural gas.

The following is a summary of the proposed pricingsubmitted by Tiger, Inc. Prices for the upstream costs and management fees are fixed for the contract period(s) as referenced in the table. Should the District elect to lock-in a price for the natural gas, the actual pricewill not be confirmed until a lock-in of the price has been completed.

Upstream
Costs Per Dth / Management
Fee Per Dth / Service Months / *Fixed price
Per Dth
$0.05 / $0.03 / July 2012 - Sept 2013 / $3.35
$0.05 / $0.03 / Oct 2012 – Sept 2013 / $3.25
$0.05 / $0.03 / July 2012 – Jun 2014 / $3.60

*The natural gas price per decatherm as referenced in the above table reflects a locked-in price based on the market conditions of April 11, 2012.

Tiger Inc. has proposed to cancel the existing contract, and issue a new fixed price contract in order to take advantage of the lower costs with an effective date of July 1, 2012 through September 30, 2013. It has also proposed the option to lock-in a fixed price for the period October 1, 2012 through September 30, 2013, as well as for a 24-month period of July 1, 2012 through June 30, 2014.

The following are the firms that were solicited, but chose not to participate in the proposal process for natural gas supply and management services requirements.

Anadarko Energy Services Company

Asgard Energy, LLC.

BP Energy Company

EnCana Energy Services, Inc.

Seminole Energy Services LLC

The term of this agreement including renewals has the potential for a five-year contract term; therefore, I recommend that the Board of Directors authorize the District Manager at her discretion to approve future renewals if deemed to be in the best interest of the Metro District. Additionally, I recommend that the District Manager be authorized to lock-in a price for natural gas at any time plus its quoted fixed management fees of $0.08 per dekatherm, if deemed to be in the best interest of the Metro District.

Due to the anticipated value of approximately $380,000, no further action will be taken until Board approval has been confirmed through an adopted resolution.

MC/mc

M: Personal Drives-Common\Casteel M\PUR05\2013\B-10099RFP Natural Gas Supply and Capacity Management Services Recommendation_mc.doc