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1583 <br />SWDD Item <br />Indian River County, Florida <br />Solid Waste Disposal District <br />Board Memorandum <br />Date: May 03, 2024 <br />To: The Solid Waste Disposal District Board of Commissioners <br />Through: John A. Titkanich, Jr., County Administrator <br />Sean C. Lieske, Director of Utility Services <br />Prepared By: Himanshu H. Mehta, PE, Managing Director, Solid Waste Disposal District <br />Subject: Renewal No. 4 with Tiger Inc for Sale and Purchase of Natural Gas <br />Descriptions and Conditions: <br />On February 21, 2023, the Indian River County (IRC) Solid Waste Disposal District (SWDD) Board approved a <br />Base Contract and an Addendum to the Base Contract (Agreement) with Tiger, Inc. for sale and purchase of <br />natural gas. Tiger, Inc. is a fixed -based cost third party marketer for the natural gas utilized by the Indian <br />River Sustainability Center, LLC (IRSC) for the leachate evaporator project. The Agreement provided a <br />Transaction Confirmation #1 with a fixed -based cost of $0.4572 per therm with a delivery period from <br />March 1, 2023, through August 31, 2023. On August 19, 2023, The IRC SWDD Board approved Tiger Gas <br />Transaction Confirmation #2 with a fixed base cost of $0.4991 per therm for the period starting September <br />1, 2023, through February 29, 2024. On March 19, 2024, the SWDD Board approved Tiger Gas Transaction <br />Confirmation #3 with a fixed based cost of $0.4205 per therm for the period starting March 1, 2024 through <br />May 31, 2024. <br />Staff recommends approval of the renewal of the Agreement via a Transaction Confirmation #4 to extend <br />the fixed -based cost to $0.439 per therm for the period starting June 1, 2024, through August 31, 2024. <br />Analysis: <br />Monthly consumption was expected to be 13,140 million British thermal units (MMBtu) per month, or <br />131,400 therms. However, actual monthly usage for eight consecutive fully operational months has <br />been approximately 76,000 therms. In the original Agreement, SWDD was purchasing 110,000 therms <br />per month and then getting less than 50% credit for the unused therms. In Transaction Confirmation #3, <br />staff has reduced the purchase to 90,000 therms. This is a conservative estimate of usage above the <br />average usage of 76,000 therms for the past eight months. <br />At the new fixed -based cost of $0.439 per therm, staff estimate an approximate monthly cost of $35,000, <br />or $105,000 for the three-month term. Please note, this fixed -based cost will be adjusted to reflect the <br />actual spot price on the day Transaction Confirmation #4 is approved. Therefore, the contract date and the <br />spot price will be updated accordingly and what is attached is a sample. <br />28eabdfc-8947-06d-8a50-1fbb4cee3d2b Pagel of <br />166 <br />