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Resolution authorizing the Mayor and Director of the Department of Public Works to enter on behalf of the City of Pittsburgh into an amendment or amendments to the purchasing agreement with Snyder Brothers Inc. for the continued supply of natural gas to the City’s buildings and facilities, and extending the term of current purchasing agreement for two years until December 2024. The City plans to soon develop a competitive solicitation for procurement of natural gas purchases in 2025 and beyond.
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WHEREAS, the City has previously entered into a purchasing agreement with Snyder Brothers Inc. that currently extends until December 2022; and
WHEREAS, the City seeks to enter into said amendment(s) of the purchasing agreement with Snyder Brothers Inc. in order to timely secure advantageous pricing for years 2023 and 2024 and extend the purchasing agreement’s term for two years accordingly; and
WHEREAS, the City will soon work towards developing a competitive solicitation for procurement of natural gas supply following the expiration of said purchasing agreement in years 2025 and beyond; and
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Mayor and Director of the Department of Public Works are hereby authorized on behalf of the City of Pittsburgh to enter into an amendment or amendments to the purchasing agreement with Snyder Brothers Inc. for the continued supply of natural gas to the City’s buildings and facilities, extending the term thereof for two years until December 2024.
Section 2. Said amendment or amendments shall not include not-to-exceed amounts due to the fact that compensation provided thereunder will be paid to Snyder Brothers Inc. from the City’s utility bills payable to the various providers as identified below and according to the corresponding pricing schedule(s) attached thereto, chargeable to and payable from the following accounts in their respective budget years:
2020 11101.450000.54.54603.2020
2021 11101.450000.54.54603.2021
2022 11101.450000.54.54603.2022
2023 11101.450000.54.54603.2023
2024 11101.450000.54.54603.2024
For the time period of January 2023 through December 2024, Snyder Brothers Inc. shall supply natural gas to the City at the following prices from the respective producers as indicated below:
PNG EQT Accounts $2.58 / cg DTH - 100% swing - Volumes reduced to approximately 74,000 / year based upon the past couple years of usage (original contract volumes = 112,304)
PNG Peoples Accounts $2.545 / cg DTH - 100% swing - Volumes reduced to approximately 15,200 / year based upon the past couple years of usage (original contract volumes = 21,110)
CPA Accounts $2.67 / cg DTH - 100% swing - Volumes increased to approximately 5,500 / year based upon the past couple years of usage (original contract volumes = 5,168)