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1 <br /> THE CITY OF <br /> •••••• — 777i�� °ii- : CITY COUNCIL AGENDA REPORT <br /> PLEASANTON-, <br /> August 15, 2023 <br /> City Manager <br /> TITLE: APPROVE THE RENEWABLE NATURAL GAS PROGRAM MEMBER <br /> AGREEMENT BY AND BETWEEN ABAG POWER AND THE CITY OF <br /> PLEASANTON TO PROCURE SB 1383 COMPLIANT NATURAL GAS NOT <br /> TO EXCEED $233,780 OVER A THIRTY-FOUR MONTH TERM <br /> SUMMARY <br /> The City is a member agency of ABAG POWER, an organization that administers a <br /> natural gas program that serves cities, counties, and special districts. ABAG POWER <br /> aggregates the natural gas needs of members and conducts bulk purchases, arranges <br /> distribution, and oversees delivery to provide price stability and cost savings to public <br /> agencies who voluntarily join the program. <br /> ABAG POWER recently established a renewable natural gas (RNG) program to procure <br /> biomethane renewable natural gas to assist its members in complying with Senate Bill <br /> (SB) 1383 requirements. The City has worked with ABAG POWER to draft an <br /> agreement to provide for SB 1383 compliant RNG procurement over a thirty-four-month <br /> term at a cost not to exceed $233,780 (Attachment 1). The agreement provides that <br /> ABAG POWER will procure the SB 1383 compliant natural gas on behalf of the City, <br /> manage the direct contract with supplier, and collect and share with the City the <br /> required record keeping documents under the SB 1383 regulations. This agreement is <br /> part of the City's overall SB 1383 compliance strategy, which also includes the <br /> procurement of compost, both locally and by contract through a direct service provider. <br /> RECOMMENDATION <br /> Approve the Renewable Natural Gas Program Member Agreement by and between <br /> ABAG POWER and the City of Pleasanton to procure SB 1383 compliant natural gas <br /> not to exceed $233,780 over a thirty-four-month term. <br /> FINANCIAL STATEMENT <br /> The procurement of SB 1383 compliant RNG is budgeted in various department <br /> accounts in the FY 2023/24-FY 2024/25 budget in the amount of $105,840 in each fiscal <br /> year. <br /> Additional costs outlined in the agreement are an annual service fee of $1,500 to <br /> compensate ABAG POWER staff for the time to manage the contract and provide the <br /> recordkeeping required by SB 1383 for a total of $4,500 for the term of the agreement. <br />