R-08-11-25-9A4 - 11/25/2008RESOLUTION NO. R -08-11-25-9A4
WHEREAS, under Senate Bill 7 of the 76th Legislature the Texas
Legislature deregulated the purchase of electric power in the State
of Texas, and
WHEREAS, in order for the City to timely execute an electric
power supply contract with a Retail Electric Provider (REP) to
obtain the best price in the volatile energy market, this Resolution
authorizes the Mayor to execute one or more power supply contracts
during the current fiscal year to purchase
power from a Retail
Electric Provider, provided the terms of this Resolution are
complied with, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
Section 1: During the current fiscal year, the Mayor may
execute, on behalf of the City, one or more contracts to purchase
power between the City and a Retail Electric Provider in accordance
with the terms of this Resolution.
Section 2: The Mayor may only execute an electric power supply
contract ("Contract") with an REP
conditions are strictly complied with:
(i) the term of the Contract is
more than three years;
in the event the following
no less than six months and no
(ii) the price per kilowatt-hour KWH shall be competitive,
considering the terms of the Houston Galveston Area
Council of Governments ("HGAC") negotiated Contract;
(iii) that the REP recommended by CGP Solutions was selected in
a competitive process in which the recommended REP offers
the "Best Value" Contract to the City when considering the
following factors:
(a) price per KWH;
0:\WDOX\RESOLUTI\R81125A4.DOC/rmc
(b) the amount, if any, of premiums to be paid by the
City for using either less or more electrical power
than its historic demand data; and
(c) ability to provide detailed, consolidated billing for
the City.
Section 3: This Resolution shall take effect upon adoption.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 25th day of November, 2008.
ATTEST:
ciueve
SARA L. WHITE, City Secretary
2
Meh
ALAN MCGRAW, Mayor
City of Round Rock, Texas
DATE: November 19, 2008
SUBJECT: City Council Meeting — November 25, 2008
ITEM: 9A4. Consider a resolution authorizing the Mayor to execute one or more
electrical power purchase contracts with a Retail Electric Provider for
electric power.
Department:
Staff Person:
Justification:
Finance Department
Cheryl Delaney, Finance Director
The City's current contract with Constellation Energy Services expires May 31, 2010. Natural gas
costs have been unpredictable over the last several months. We will be looking for an
opportunity to obtain favorable pricing for a new agreement or a blend an extend agreement
with our current vendor with more favorable pricing of our existing agreement. The City's
current contract was obtained through Cooperative Procurement with the Houston Galveston
Area Council of Governments (HGAC). This resolution grants the Mayor the authority to execute
the negotiated contract that results from this process.
Funding:
This item does not bind the City to any agreement or course of action.
Cost: N/A
Source of funds: N/A
Outside Resources: Greg Pendley, CGP Solutions
Background Information:
Since deregulation of the electric market, the City of Round Rock has procured electricity as a
member of the Governmental Aggregation Project (GAP) and most recently as a member of
Houston Galveston Area Council of Governments (HGAC) through its HGAC Energy Purchasing
Corporation, which has more than 240 local governments as members.
Public Comment: N/A