R-06-10-12-11B2 - 10/12/2006RESOLUTION NO. R -06-10-12-11B2
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 in the event the following conditions
are strictly complied with:
(i) the term of the Contract is no less than six months and no
more than two years;
(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;
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(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 12th day of October, 006.
ST:,
, Mayor
Ci y of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secr ary
2
DATE: October 5, 2006
SUBJECT: City Council Meeting, October 12, 2006
ITEM: 11.6.2. Consider a resolution granting authority to the Mayor to execute
one or more electrical power purchase contracts with a Retail
Electric Provider to provide electric power to the City.
Department: Finance Department
Staff Person: Cindy Demers, Finance Director
Justification:
The City's current contract with Constellation New Energy, Inc. expires on June 30, 2007.
Current trends in the cost of natural gas are expected to improve within the next two to
eight weeks and again in the early spring of 2007. 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 H -GAC Energy
Purchasing Corporation, which has more than 240 Local Governments as members.
Public Comment: N/A