DISCLAIMER

 

08-0072R


RESOLUTION AUTHORIZING CITY OFFICIALS TO RENEW AGREEMENT #20458 WITH MINNESOTA POWER FOR PROFESSIONAL SERVICES IN THE ACQUISITION, TRANSPORTATION AND MANAGEMENT OF NATURAL GAS SUPPLIES IN 2008 FOR AN AMOUNT NOT TO EXCEED $63,600.

BY COUNCILOR FOSLE:

     RESOLVED, that city officials are hereby authorized to renew Agreement #20458 with Minnesota Power, a division of Allete, Inc., for professional services related to the acquisition, transportation and management of the natural gas supply for the city’s gas utility in year 2008 for an amount not to exceed $63,600, payable the Gas Fund 520, Department/Agency 500, Organization 1960, and Object 5310.


STATEMENT OF PURPOSE:  This resolution authorizes Minnesota Power’s continued assistance in acquiring, transporting and managing the natural gas supplies.


The professional services fees for 2008, more fully described in Agreement #20458, Article I, sections a-d, will remain the same as last year at $5,300 per month or $63,600 annually, payable from the gas fund. This contract is a continuation of the original contract begun in 2003.


Average monthly costs since 2005 are listed below:


 

Monthly

Annual

2005

$6,920

$83,040

2006

$5,860

$70,320

2007

$5,300

$63,600

2008

$5,300

$63,600


The original agreement was reviewed by the gas purchasing oversight committee who recommended its approval by the city council.


Requisition 08-0082R