December 5, 2018 AUTHORIZE THE THIRD AND FOURTH RENEWAL AGREEMENTS WITH CONSTELLATION I ENERGY SERVICES - NATURAL GAS, LLC TO SUPPLY NATURAL GAS THE CHIEF EXECUTIVE OFFICER REPORTS THE FOLLOWING DECISION: Authorize the Third and Fourth Renewal Agreements with Constellation Energy Services - Natural Gas, LLC to provide natural gas to the Department of Facilities at an estimated annual cost set fOrth- in the Compensation Section Of this report. A written document exercising these options is currently being negotiated. No payment shall be made to Vendor during theoption periods priOr to execution of the written document. The authority granted herein shall automatically rescind" In the event a written document' Is not executed Within 90 days of the date of this Board Report. Information pertinent to these options is stated below. speci?cation Number: 13-250075 Contract Administrator Barnes, Miss Allison 773-553-2280 VENDOR: Vendor 76798 CONSTELLATION ENERGY NATURAL GAS, LLC 1716 LAWRENCE DRIVE DEPERE, WI 54115 Jay Beasley 312 681 -1 899 Ownership: Subsidiary Of Exelon Corp, Over 100 Shareholders USER INFORMATION Project . .. Manager: 11880 - Facility Opers Maint - City Wide 42 West Madison Street Chicago, IL 60602 Peng. Mr. Yanbo 773?553-2960 ORIGINAL AGREEMENT: I The Original Agreement (authorized by Board Report 14- 0122? In the amount of $90 000, 000' Is for a 7 term commencing April 1, 2014 and ending March 31,2016 with the number and period of renewal options to be determined by the Chief Financial Officer and Chief Facilities Officer dependent upon pricing and market conditions. The First Renewal Agreement (authorized by Board Report in the amount of $30,000,000 was for a term commencing April 1, 2016.and ending March 31, 2017. The Second Renewal Agreement (authorized by Board Report in the amount of $30,000,000 was for a term commencing April 1, 2017 and ending March 31, 2019. The Original Agreement was awarded on a competitive basis pursuant to Board Rule 7-2. 18-1205-P R9 OPTION PERIOD: The term of this agreement' Is being renewed for two (2) two-year terms for a total of four years commencing April 1, 2019 and ending March 31, 2023. OPTION PERIODS REMAINING: - This renewal agreement shall indicate that there no options to renew remaining. SCOPE OF SERVICES. - Supplier will continue to Supply the Board's full requirements for natural gas including, but not limited to, space and hot water heating to all of the Board's facilities. DELIVERABLES: - Supplier will continue to deliver natural gas supply. - COMPENSATION: Supplier shall be compensated at the rates set forth' In the Renewal Agreement. AUTHORIZATION. Authorize the General Counsel to include other relevant terms and conditions In the written option document. Authorize the President and Secretary to execute the option document. Authorize Chief Facilities Off cer and Executive Director of Facilities- Operations to execute all ancillary documents required to administer or effectuate this option agreement. AFFIRMATIVE ACTION: Pursuant to the Remedial Program for Minority and Women- Owned- Business Enterprise Participation in Goods and Services contracts, (MNVBE Program) this contract' Is exempt as this agreement is a utilities supplier of electricity and gas. LSC REVIEW: Local School Council approval is not applicable to this report. FINANCIAL: Fund: 230 Charge to Department of Facilities, Unit 11880 FY19 $3,125,000 - FY20 $12,500,000 FY21 $12,500,000 FY22 $12,500,000 FY23 $9,375,000 Not to exceed $50,000,000 Future year funding is contingent upon budget appropriation and approval. CF Not Applicable R9 GENERAL CONDITIONS. Inspector General? Each party to the agreement shall acknowledge that, in accordance with 105 ILCS 5/34-13. 1, the Inspector General of the Chicago Board of Education has the authority to conduct certain investigations and that the Inspector General shall have access to all information and personnel necessary to conduct those investigations. . Conflicts The agreement shall not be legally binding on the Board if'entered into in violation of the 7 provisions of 105 5/34?21 .3 which restricts the employment of, or the letting of contracts to, former Board members during the one year period following expiration or other termination of their terms of office I - indebtedness? The Board' 3 Indebtedness Policy adopted June 26 1996 (96- -0626- -PO3), as amended from time to time, shall be incorporated into and made a part of the agreement. Ethics- The Board' 8 Ethics Code adopted May 25 2011 (11-0525 P02), as amended from time to time, shall be incorporated into and made a part 'of the agreement Contingent Liability The agreement shall contain the clauSe that any expenditure beyond'the current . fiscal year is deemed a contingent liability, subject to appropriatiOn' In the sUbsequent fiscal year budget(s). Approved fer Consideration: I I - ApprOVed: JONATHAN MAPLES If 7' I JANICE K-. JACKSON Chief Procurement Officer Chief Executive Officer Approved i; JOSE TM RIARTY General. ounsel