R-01-11-05-3A1 - 11/5/2001RESOLUTION NO. R- 01,- 11- 05 -3A1
WHEREAS, Senate Bill 7, enacted by the 76 Texas Legislature,
restructures electric power within the State of Texas; and
WHEREAS, Section 303.001 of the Local Government Code
authorizes political subdivisions to join together to form a
political subdivision corporation to negotiate the purchase of
electricity or to aid or act on behalf of the political
subdivisions for which the corporation is created with respect to
their own electricity use for their respective public facilities;
and
WHEREAS, the Houston - Galveston Area Council, a political
subdivision of the State under Chapter 391 of the Local Government
Code, has conducted a cooperative purchasing program for more than
twenty -five years and has formed the H -GAC Energy Purchasing
Corporation ( "Corporation ") as a political subdivision corporation;
and
WHEREAS, the City of Round Rock wishes to obtain electricity
for its public facilities, at the lowest cost providing the best
value, thereby benefiting its citizens and taxpayers; Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
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Section 1. The City of Round Rock agrees to join with the
Houston - Galveston Area Council and other participating Political
Subdivisions and participate in the Corporation.
Section 2. The City of Round Rock hereby approves the H -GAC
Energy Purchasing Corporation Articles of Incorporation, attached
as Exhibit A, and Bylaws, attached as Exhibit B.
Section 3. The City of Round Rock agrees to cooperate with
the Corporation in providing data related to electricity demand for
its accounts, and other information that may assist in preparing
bid solicitations or requests for proposals.
Section 4. By approving this resolution, the City of Round
Rock does not create an obligation for the City of Round Rock, nor
does it authorize the Corporation to actually purchase electricity
on its behalf without the City of Round Rock's prior consent to
specific purchases. The City of Round Rock understands that prior
to authorizing the purchase of electricity through contracts
negotiated by the Corporation, information detailing procurement
terms will be provided. The City of Round Rock may then purchase
electricity through contract(s) negotiated by the Corporation on
its behalf by issuing an order, resolution, purchase order or other
binding agreement under terms that are materially the same as the
terms the Corporation originally described in the information
presented to the City of Round Rock.
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Section 5. The City of Round Rock agrees to allow the
Corporation to use its name as a participant in descriptions of the
Corporation.
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 5th day of November, 2001.
A TEST:
CHRISTINE R. MARTINEZ, City Secre
3
WA h. z .
ROB R A. STLUKA, JR., " Mayor
City of Round Rock, Texas
ary
ARTICLES OF INCORPORATION
OF
H -GAC ENERGY PURCHASING CORPORATION
The undersigned, each a political subdivision, acting as incorporators of a corporation
under Texas Local Government Code § 303.001 et seq., do hereby adopt the following Articles
of Incorporation for such corporation:
ARTICLE 1
The name of the corporation is H -GAC Energy Purchasing Corporation.
ARTICLE 2
The corporation is a non -profit political subdivision corporation described in Texas Local
Government Code §§ 303.001 et seq.
The period of its duration is perpetual.
ARTICLE 4
The corporation is organized and shall be operated exclusively to act as an agent to
negotiate the purchase of electricity, or to likewise aid or act on behalf of the political
subdivisions for which the corporation was created, with respect to their own electricity use for
their respective public facilities and to undertake all other acts permitted to be undertaken by a
political subdivision corporation described in Texas Local Government Code §§ 303.001 et seq.
ARTICLE 5
The street address of the initial registered office of the corporation is 3555 Timmons
Lane, Suite 500, Houston, Texas 77027, and the name of its initial registered agent at such
address is Steve Howard.
ARTICLE 6
Except as otherwise provided in these articles and in the bylaws of the corporation, the
direction and management of the affairs of the corporation and the control and disposition of its
properties and funds shall be vested in a board of directors composed of such number of persons
(not less than three (3)) as may be fixed by the bylaws of the corporation. Until changed by the
bylaws the original number of directors shall be three (3). The directors shall continue to serve
until their successors are selected in the manner provided in the bylaws of the corporation. The
names and addresses of the persons who shall serve as initial directors of the corporation until
their successors are duly elected and qualified are as follows:
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ARTICLE 3
EXHIBIT
Name Address
Guy Sutherland
Terry Henley
Andy Meyers
3555 Timmons Lane, Suite 500
Houston, Texas 77027
3555 Timmons Lane, Suite 500
Houston, Texas 77027
3555 Timmons Lane, Suite 500
Houston, Texas 77027
ARTICLE 7
The corporation shall have no members with voting rights.
ARTICLE 8
These articles of incorporation, and the corporation's bylaws, have been approved by
ordinance, resolution or order adopted by the governing body of each political subdivision for
which the corporation is created. The power to alter, amend or repeal the bylaws or to adopt new
bylaws shall be vested in the board of directors, save and except Article 3 of the bylaws.
ARTICLE 9
Any action required to, or which may, be taken at a meeting of the directors or a
committee of the board of directors may be taken without a meeting if a consent in writing,
setting forth the action to be taken, is signed by a sufficient number of directors or committee
members as would be necessary to take that action at a meeting at which all of the directors or
committee members were present and voted, provided such consent is in the form provided for
and such action is taken in accordance with the Texas Non - Profit Corporation Act, these Articles
of Incorporation and the Bylaws of the corporation.
ARTICLE 10
Pursuant to Article 6.02, Subsection (3) of the Texas Non -Profit Corporation Act, upon
dissolution of the corporation in accordance with the laws of the State of Texas, the board of
directors, after paying or making provision for payment of all liabilities of the corporation, and
after returning, transferring, or conveying those assets of the corporation that are held subject to
conditions requiring such return, transfer, or conveyance, shall distribute all the corporation's
remaining assets to one or more non -profit corporations and/or public entities and/or political
subdivisions as the board of directors in its sole discretion shall determine.
ARTICLE 11
A director of the corporation shall not be liable to the corporation for monetary damages
for an act or omission in the director's capacity as a director, except that this Article 11 does not
eliminate or limit the liability of a director of the corporation to the extent the director is found
liable for: (i) a breach of the director's duty of loyalty to the corporation; (ii) an act or omission
not in good faith that constitutes a breach of duty of the director to the corporation or an act or
omission that involves intentional misconduct or a knowing violation of the law; (iii) a
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transaction from which the director received an improper benefit, whether or not the benefit
resulted from an action taken within the scope of the director's office; or (iv) an act or omission
for which the liability of a director is expressly provided by an applicable statute. If the Texas
Miscellaneous Corporation Laws Act or any other statute of the State of Texas hereafter is
amended to authorize the further elimination or limitation of the liability of directors of the
corporation, then the liability of a director of the corporation shall be limited to the fullest extent
permitted by the statutes of the State of Texas, as so amended, and such elimination or limitation
of liability shall be in addition to, and not in lieu of, the limitation on the liability of a director of
the corporation provided by the foregoing provisions of this Article 11. Any repeal of or
amendment to this Article 11 shall be prospective only and shall not adversely affect any
limitation on the liability of a director of the corporation existing at the time of such repeal or
amendment.
2001.
Houston - Galveston Area Council
ARTICLE 12
The name and address of each incorporator is:
Name Address
City of La Porte 604 W. Fairmont Parkway
La Porte, Texas 77571
IN WITNESS WHEREOF, I have hereunto set my hand this day of
Houston - Galveston Area Council, City of La Porte,
a political subdivision a political subdivision
By: By:
Jack Steele, Executive Director Norman Malone, Mayor
3
3555 Timmons Lane, Suite 500
Houston, Texas 77027
BYLAWS
OF
H -GAC ENERGY PURCHASING CORPORATION
ARTICLE 1
NAME AND PURPOSE
1.1 Name. The name of the corporation is H -GAC Energy Purchasing
Corporation (the "Corporation ").
1.2 Purpose. The corporation is organized and shall be operated exclusively
to act as an agent to negotiate the purchase of electricity, or to likewise aid or act on
behalf of the political subdivisions for which the corporation was created, with respect to
their own electricity use for their respective public facilities and to undertake all other
lawful acts not prohibited to be undertaken by a political subdivision corporation
described in Tex. Loc. Gov't Code §§ 303.001 et seq.
1.3 Offices. The Corporation may have, in addition to its registered office,
offices at such places, both with and without the State of Texas, as the Board of Directors
may from time to time determine or as the activities of the Corporation may require.
ARTICLE 2
MEMBERS
2.1 Number, Powers and Duties. This Corporation shall have no voting
members. The Corporation's Board of Directors may by resolution, authorize the
formation of an advisory panel to provide advice to the Corporation's Board of Directors.
The terms of appointment and government with respect to the advisory panel shall be
determined by the Board of Directors and may be set forth in resolutions authorizing the
formation of such panel.
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EXHIBIT
If BIf
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affairs of the Corporation. In case of election to fill a vacancy, the term of the successor
shall be for the unexpired term for which the former occupant thereof was elected.
3.2 Resignation of Directors Each director shall have the right to resign at
any time upon written notice thereof to the President or Secretary of the Corporation.
Unless otherwise specified in the notice, the resignation shall take effect upon receipt
thereof, and the acceptance of such resignation shall not be necessary to make it effective.
3.3 Removal of Directors. The H -GAC Board may remove at any time a
director from the Board when such removal is determined by the H -GAC Board to be in
the best interest of the Corporation.
3.4 Election. Directors constituting the initial Board shall be named in the
Articles of Incorporation of the Corporation. Thereafter, successor directors shall be
elected at a regular meeting of the H -GAC Board to serve terms as directed by the H-
GAC Board. A director may be elected to succeed himself or herself.
3.5 Annual Meeting. The annual meeting of the Board for the election of
officers and the transaction of such other business as may lawfully come before the
meeting shall be held at such time and on such day as established from time to time by
the Board. The Chairman of the Board or the Secretary of the Corporation shall give a
minimum of one day's notice of such meeting to each director, either personally or by
mail, telecopy, telex or telegraph.
3.6 Order of Business. The order of business at the annual meeting shall be
as follows:
(a) Roll call.
(b)
Reading of the notice of the meeting.
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thereon.
(c) Reading of the minutes of the preceding meeting and action
(d) Acknowledge election of directors by H -GAC Board.
(e) Reports of officers.
(f) Election of officers.
(g) Miscellaneous business.
3.7 Additional Meetings. Meetings of the Board shall be held no less than
quarterly and additional meetings shall be held whenever called by the Chairman of the
Board of the Corporation or upon written request of any two directors. The Chairman of
the Board or the Secretary shall give one day's notice of each such quarterly meeting and
any special meeting either personally or by mail, telecopy, telex or telegraph.
3.8 Quorum for Meetings. A majority of the directors shall constitute a
quorum for the transaction of business at all meetings convened according to these
bylaws.
3.9 Voting. The affirmative vote of a majority of the directors present at a
meeting at which a quorum is present shall be the act of the Board, except as may be
otherwise specifically provided by law or these bylaws.
3.10 Proxies. A director may vote at a meeting of the Board by proxy executed
in writing by the director and delivered to the Secretary of the Corporation at or prior to
such meeting; however, a director present by proxy at any meeting of the Board may not
be counted to determine whether a quorum is present at such meeting. Each proxy shall
be revocable unless expressly provided therein to be irrevocable, and unless otherwise
made irrevocable by law.
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3.11 Compensation. Directors, as such, shall not be entitled to any stated
salary for their services but by resolution of the Board, expenses of attendance, if any,
may be allowed for attendance at each meeting of the Board.
ARTICLE 4
NOTICES
4.1 Form of Notice. Whenever under the provisions of these bylaws, notice
is required to be given to any director and no provision is made as to how such notice
shall be given, it shall not be construed to mean personal notice, but any such notice may
be given in writing by mail, postage prepaid, addressed to such director at such address as
appears on the books of the Corporation. Any notice required or permitted to be given by
mail shall be deemed to be given at the time when the same be thus deposited, postage
prepaid, in the United States mail as aforesaid.
4.2 Waiver. Whenever any notice is required to be given to any director
under the provisions of these bylaws, a waiver thereof in writing signed by the person or
persons entitled to such notice, whether before or after the time stated therein, shall be
equivalent to the giving of such notice.
ARTICLE 5
GENERAL OFFICERS
5.1 Election. The officers of this Corporation shall be a Chair of the Board, a
Vice Chair of the Board, a President, a Secretary/Treasurer and such other officers as
may be determined and selected by the Board. The Board, at its first meeting and
annually thereafter at the annual meeting, shall elect the officers. The officers so elected
shall hold office for a period of one year and until their successors are elected and
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qualify. The offices of President and Secretary/Treasurer may not be filled by the same
person, but all other offices may be filled by the same person.
5.2 Attendance at Meetings. The Chair of the Board, and in his or her
absence, the Vice Chair of the Board, and in his or her absence, the President, shall call
meetings of the Board to order, and shall act as chairman of such meetings. The
Secretary/Treasurer of the Corporation shall act as secretary of all such meetings, but in
the absence of the Secretary /Treasurer the Chairman of the Board may appoint any
person present to act as secretary of the meeting.
5.3 Duties. The principal duties of the several officers are as follows:
(a) Chair of the Board. He or she shall preside at all meetings of the
Board, and may exercise the powers vested in him or her by the Board, by law of these
bylaws, or which usually attach or pertain to such office.
(b) Vice Chair of the Board. When the Chair of the Board is not in
attendance, he or she shall preside at all meetings of the Board. He or she shall exercise
the powers vested in him or her by the Board, by law or these Bylaws or which usually
attach or pertain to such office.
(c) President. The President shall be the chief executive officer of the
Corporation. He or she shall have general charge and supervision of the business,
property, and affairs of the Corporation. The President shall see that all orders and
resolutions of the Board are carried into effect. The President shall sign and execute all
legal documents and instruments in the name of the Corporation when authorized to do so
by the Board and shall perform such other duties as may be assigned to him or her from
time to time by the Board.
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(d) Secretary/Treasurer. The Secretary/Treasurer shall (i) have charge
of the records and correspondence of the Corporation under the direction of the President,
and shall be the custodian of the seal of the Corporation, (ii) give notice of and attend all
meetings of the Board, (iii) take and keep true minutes of all meetings of the Board of
which, ex officio, he or she shall be the secretary, (iv) keep account of all moneys, credits
and property of the Corporation which shall come into his or her hands and keep an
accurate account of all money received and discharged, (v) except as otherwise ordered
by the Board, have the custody of all the funds and securities of the Corporation and shall
deposit the same in such banks or depositories as the Board shall designate, (vi) keep
proper books of account and other books showing at all times the amount of the funds
and other property belonging to the Corporation, all of which books shall be open at all
times to the inspection of the Board, (vii) submit a report of the accounts and financial
condition of the Corporation at each annual meeting of the Board, (viii) under the
direction of the Board, disburse all moneys and sign all checks and other instruments
drawn on or payable out of the funds of the Corporation, which checks, however, must
also be signed by the President (if the face amount of the check is less than Five - Hundred
Dollars ($500.00)), or the Chairman of the Board (if the face amount equals or exceeds
Five - Hundred Dollars ($500.00), (ix) make such transfers and alterations in the assets of
the Corporation as may be ordered by the Board, (x) in general, perform all the duties
which are incident to the office of treasurer, subject to the Board, and (xi) perform such
additional duties as may be prescribed from time to time by the Board. The
Secretary /Treasurer shall give bond only if required by the Board.
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5.4 Vacancies. Whenever a vacancy shall occur in any general office of the
Corporation, such vacancy shall be filled by the Chairman of the Board subject to
ratification by the Board at its next meeting subsequent to such appointment. Such new
officer shall hold office until the next annual meeting and until his or her successor is
elected and qualifies.
ARTICLE 6
APPOINTIVE OFFICERS AND AGENTS
The Board may appoint such officers and agents in addition to those provided for
in Article 5, as may be deemed necessary, who shall have such authority and perform
such duties as shall from time to time be prescribed by the Board. All appointive officers
and agents shall hold their respective offices or positions at the pleasure of the Board, and
may be removed from office or discharged at any time with or without cause; provided
that removal without cause shall not prejudice the contract rights, if any, of such officers
and agents.
ARTICLE 7
EXECUTIVE COMMITTEE
7.1 Members. The Board may, by resolution passed by a majority of the
whole Board, establish an Executive Committee which shall consist of not less than two
(2) directors, one of whom shall be the Chair of the Board and one of whom shall be the
Vice Chair of the Board.
7.2 Powers. The Executive Committee shall have power to make investments
of funds of the Corporation and to change the same, and from time to time to sell any part
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or all of the assets of the Corporation or any rights or privileges that may accrue thereon
and to cause the same to be transferred by the proper officers of the Corporation.
During the intervals between meetings of the Board, the Executive Committee
shall have the immediate charge, management and control of the activities and business
affairs of the Corporation and have full power to do any and all things in relation to the
affairs of the Corporation and to exercise any and all powers of the Board in the
management and direction of the business and conduct of the affairs of the Corporation.
The Executive Committee shall direct the manner in which the books and
accounts of the Corporation shall be kept and cause to be examined from time to time the
accounts and vouchers of the Treasurer and moneys received and paid out by the
Treasurer.
The Executive Committee shall keep a record of its proceedings and report the
same to the Board at each succeeding meeting of the Board.
7.3 Quorum. A majority of members of the Executive Committee shall
constitute a quorum.
ARTICLE 8
INDEMNIFICATION OF DIRECTORS AND OFFICERS
8.1 Indemnification. Article 1396 -2.22A of the Texas Non - Profit
Corporation Act permits the Corporation to indemnify its present and former directors
and officers to the extent and under the circumstances set forth therein. The Corporation
hereby elects to and does hereby indemnify all such persons to the fullest extent
permitted or required by such Article promptly upon request of any such person making a
request for indemnity hereunder. Such obligation to so indemnify and to so make all
necessary determination may be specifically enforced by resort to any court of competent
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jurisdiction. Further, the Corporation shall pay or reimburse the reasonable expenses of
such persons covered hereby in advance of the final disposition of any proceeding to the
fullest extent permitted by such Article and subject to the conditions thereof.
ARTICLE 9
AMENDMENTS
These bylaws may be amended only by the Board of Directors, save and except
Article 3 of the bylaws.
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CERTIFICATE
I, the undersigned, Andy Meyers, Secretary/Treasurer of H -GAC Energy
Purchasing Corporation, a Texas non -profit corporation, do hereby certify that the
foregoing bylaws were duly adopted as the bylaws of the Corporation on
, 2001, by the affirmative vote of the directors of the Corporation.
Dated: , 2001.
Andy Meyers, Secretary/Treasurer
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DATE:
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Sponsor:
November 2, 2001
Special Called City Council Meeting — November 5, 2001
3.A.1. Consider a resolution agreeing to join the H -GAC Energy
Purchasing Corporation.
Bob Bennett, City Manager
David Kautz, Finance Director
This resolution enables the City to participate with the H -GAC
aggregation group for the purpose of acquiring electric power in a
deregulated market for City owned facilities. This resolution does not
create an obligation for the City, nor does it authorize the Corporation
to actually purchase electricity on the City's behalf without the City's
prior consent.
N/A
N/A
N/A
N/A
Participating in an electric aggregation group should provide the City
lower electric rates due to buying in larger quantities.
N/A
N/A