Notification of emergency procurement of propane from MX Energy in the amount of $59,598.00. The President Street Water Reclamation Plant uses propane as an alternate fuel supply to its interruptible natural gas service. During times of high demand, the natural gas service to the facility is curtailed and propane is used. In the past, natural gas has frequently been curtailed due to hurricanes. Event when hurricanes do not impact the Savannah area, they can have effects on the natural gas pipeline from Texas and effect the service from Texas.

In order for the solids handling system to begin, the President Street facility needed to deplete its stock of propane. This was done in order for the contractors to make tie-ins to the new system. The propane was used during the final days of incineration to empty the 35,000-gallon propane tanks and system. The $28 million solids handling project at the President Street facility is nearing its testing phase and the propane is needed in order to perform testing on the new equipment.

Propane pricing is driven by the market and pricing fluctuates daily. In order to lock in a price, an order must be placed by 3 p.m. the following day of the quotation. When the storm season was approaching and the need to commission the solids handling system arose, propane was needed. Operations obtained pricing and placed the order as an emergency purchase to lock in the price and to rapidly replace the depleted propane supply to serve as a backup to the natural gas supply.  

In the past the City has attempted to purchase propane via contracts and bidding. However, due to the drastic fluctuations in the market daily, propane suppliers cannot offer firm pricing. Due to the quantities ordered, this vendor is the only known supplier that can supply propane in large quantities.

Approval