REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
January 11, 2022
FROM
WILLIAM L. GILBERT, Director, Arrowhead Regional Medical Center
SUBJECT
Title
Agreement with Pacific Summit Energy LLC for Sale and Purchase of Natural Gas
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with Pacific Summit Energy LLC, for sale and purchase of natural gas for the period of February 1, 2022 through January 31, 2027, for a not-to-exceed amount of $4,500,000.
(Presenter: William L. Gilbert, Director, 580-6150)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this recommended Agreement will not result in the use of Discretionary General Funding (Net County Cost). The not-to-exceed cost of $4,500,000 is funded by State Medi-Cal, Federal Medicare, private insurances, and other departmental revenue. Funding sources may change in the future pending any legislative activity related to the repeal and/or replacement of the Affordable Care Act. Adequate appropriation and revenue have been included in the Arrowhead Regional Medical Center (ARMC) 2021-22 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The recommended Agreement will allow ARMC the ability to purchase natural gas from Pacific Summit Energy LLC (Pacific Summit) for uses including but not limited to, space heating, water heating, cooking, and emergency fuel. ARMC utilizes an energy supplier to purchase natural gas in order secure lower rates by entering into a fixed rate contract with a specific energy supplier. If the natural gas utility provider, So Cal Gas, increases their rates, ARMC's cost will remain the same. By purchasing natural gas from a supplier, such as Pacific Summit, ARMC has saved an average of 40% on natural gas costs. ARMC has utilized an energy supplier for the direct purchase of natural gas since...
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