HomeMy WebLinkAbout2022-12-05 J01G_06 Natural Gas Service Agr Amendment\AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 5, 2022
AGENDA ITEM:Consideration of approval of a resolution approving Amendment to
Contract/Natural Gas Service Agreement [Clayton Energy Corporation]
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The City of Waukee and Clayton Energy Corporation
entered into an agreement approved by City Council on September 21, 2015 (RES# 15-325) to provide
the natural gas supply services to the City including nominations and scheduling for all of the City’s
transportation and storage services on the natural gas supply pipeline.
Clayton Energy desires to amend the agreement to Article V “Compensation”. The City will pay
Clayton Energy a monthly fee of $2,800.00 for its services rendered in addition to any other amounts
due under the agreement. Each annual anniversary of the agreement, the compensation as set forth in
this Article shall be increased two percent (2%).
The original agreement had a monthly compensation amount of $2,300 in 2015 and hasn’t increased
since then. Cost increases have been experienced across all industries, especially in the past 24
months. This amendment catches up the fee (equates to approximately a 2.5% annual increase for the
past 7 years) and adds an annual 2% cost of service inflator to ensure Clayton Energy is compensated
accordingly.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $2,800.00 monthly for services
rendered in addition to any other amounts due under the original agreement.
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the Resolution.
ATTACHMENTS: I. Resolution
II. Amendment to Contract
PREPARED BY: Beth Richardson
REVIEWED BY: Rudy Koester RK
J1G6
THE CITY OF WAUKEE, IOWA
RESOLUTION 2022-
APPROVING AMENDMENT TO CONTRACT/NATURAL GAS SERVICE AGREEMENT
[CLAYTON ENERGY CORPORATION]
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal
Organization; AND,
WHEREAS, the City entered into an Agreement on September 1, 2015 (RES # 15-325), to provide the
natural gas services to the City including nominations and scheduling for all of the City’s
transportation and storage service on the natural gas supply pipeline; AND,
WHEREAS, Clayton Energy desired to amend the agreement to Article V “Compensation” by adding
a monthly fee of $2,800.00 for its services rendered in addition to any other amounts due under the
agreement:
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee that the
Amendment the Agreement the contract for Natural Gas Service [Clayton Energy Corporation] is
hereby approved.
Passed by the City Council of the City of Waukee, Iowa, and approved the 5th day of December, 2022.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce
R. Charles Bottenberg
Chris Crone
Larry R. Lyon
Ben Sinclair