Recommendation to adopt resolution authorizing City Manager, or designee, to execute Customer Natural Gas Transportation/Service Agreements and all necessary amendments between the City of Long Beach and utility customers that procure their natural gas supply from third-party marketers, for a period of five years, with automatic one-year renewal options, at the discretion of the City Manager.  (Citywide)
Moshe Karis. Thank you. And we'll move right along to item number 18. Report from Long Beach Gas and Oil Recommendation to adopt the resolution authorizing the city manager to execute customer natural gas transportation service agreements between the city and utility customers that procure their natural gas supply from third party marketers. Citywide. Thank you. A brief staff report. Yes, we have a brief staff report from general manager Tony Foster. All right. Good evening, Vice Mayor and City Council. This item seeks your approval for adoption and resolution authorizing the city manager or designee to reenter into a natural gas transportation service agreement between the city and several utility customers that purchased their gas supply from third party suppliers. LP Go along with other gas utilities. Allow certain large consumption customers to purchase their natural gas supply from third party marketers and utilize city's pipeline system to transport this gas to end user facilities. These customers must be either compressed natural gas or rate five customers, electric generation or rate seven customers or transportation rate nine customers. These customers are not charged for the gas commodity, but rather only the gas transmission rates that apply to their requests. These transportation customers were approved were last approved for the Transportation Service Agreement in June on June 12th, 2012. The customers are thumbs. National Gypsum. Long Beach. Memorial Hospital. Toyota Asphalt Products. American Textile Community Hospital. Saint Mary's Hospital. Bloom Energy. California State University. Long Beach and Home Depot. The current contract expires on June 31st, 2017, and new agreements must be executed to ensure continued services to these customers. The agreements will be for an initial five year period, after which the agreements will automatically renew for a one year period. Any party may terminate upon 30 days notice. Revenue generated through these agreements is estimated to be one point million, one point million dollars annually. But this varies based on the actual demand. This concludes my report, and I'm happy to answer any questions. Thank you. Mr. Foster. Is there any public comment on this item? Seeing nonmembers, please cast your vote. Motion carries. Thank you. We're going to take a couple out of order here. The next one is 19. That was the first one to be requested to move up the stairs. Take take that one now. Mr.. We'll take a moment.