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Home My WebLink AboutCity Council Resolutions (R-08-3025)-10/21/2008RESOLUTION R-08-3025 A RESOLUTION OF THE CITY OF COLLEYVILLE, TEXAS, AUTHORIZING THE CITIES AGGREGATION POWER PROJECT, INC. (CAPP) TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF ELECTRICITY AND NECESSARY, RELATED SERVICES; AUTHORIZING THE CITY MANAGER TO SIGN A CONTRACT WITH CAPP FOR THE CITY'S ELECTRICITY NEEDS FOR THE PERIOD BEGINNING JANUARY 1, 2009 AND EXTENDING UP TO DECEMBER 31, 2013; COMMITTING TO BUDGET FOR ENERGY PURCHASES AND TO HONOR THE CITY'S COMMITMENTS TO PURCHASE POWER THROUGH CAPP FOR ITS ELECTRICAL NEEDS FOR THE PERIOD BEGINNING JANUARY 1, 2009 AND EXTENDING UP TO DECEMBER 31, 2013 WHEREAS, the City of Colleyville, Texas (City) is a member of Cities Aggregation Power Project, Inc. (CAPP), a nonprofit political subdivision corporation dedicated to securing electric power for its 111 political subdivision members in the competitive retail market; and WHEREAS, CAPP negotiated favorable contract terms and a reasonable commodity price for delivered electricity since 2002 resulting in significant savings for its members; and WHEREAS, the City's current contract for power expires December 31, 2008 and the CAPP Board of Directors is currently considering indicative retail energy prices that point to favorable pricing for the five year period ending December 31, 2013; and WHEREAS, power providers desire to execute a contract with one, and only one, entity rather than have unique contracts for each CAPP member. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1 THAT the CAPP Board and its consultants and advisors are agents authorized to negotiate for the City's electricity needs as a member of CAPP for a term to begin January 1, 2009 and extending up to December 31, 2013. Sec. 2 THAT the City approves CAPP contracting with FPL Energy and Direct Energy for the supply of electric power and related, necessary services for the City for a term to begin January 1, 2009 and extending up to December 31, 2013. Sec. 3 THAT the City will execute a contract with CAPP that permits the Chairman of CAPP to sign a Commercial Electric Service Agreement ("CESA") for the City's electricity needs and related, necessary services Resolution R-08-3025 Page 2 of 2 beginning January 1, 2009 and extending up to December 31, 2013, as a member of CAPP and commits its load for the same period pursuant to the contract recommended and approved by the CAPP Board of Directors. Sec. 4 THAT the City will budget and approve funds necessary to pay electricity costs proportionate to the City's load under the supply agreement arranged by CAPP and signed by the Chairman of CAPP on behalf of all CAPP members for the term beginning January 1, 2009 and extending up to December 31, 2013. Sec. 5 THAT a copy of the resolution shall be sent to Mary Bunkley with the City Attorney's Office in Arlington and Geoffrey M. Gay, legal counsel to CAPP. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF AYES, ~ NAY AND ~_ ABSTENTIONS ON THIS THE~~DAY OF 2008. ATTEST: CITY OF COLLEYVILLE ~ ,. Cynthia Singleton, TRMC, CMC David Kelly City Secretary Mayor LETTER OF AGREEMENT That this agreement is made and entered into this 5th day of November 2008 by and between the City of Colleyville, a home rule municipality organized and existing under the laws of the State of Texas, hereinafter referred to as "City" and Cities Aggregation Power Project, hereinafter referred to as "LAPP". WHEREAS, the City is a member of CAPP, a nonprofit political subdivision corporation dedicated to securing electric energy for its more than 110 members in the competitive retail market; and WHEREAS, it is necessary for CAPP and the City to contract for a supply of electricity before December 31, 2008, or revert to high price standard contracts and independently shop for a power contract; and WHEREAS, the City Council previously passed a resolution authorizing the CAPP Board and its consultants and advisors to negotiate a contract on behalf of the City and committing the City's load for the period beginning January 1, 2009 up to December 31, 2013 pursuant to the contract recommended and approved by the CAPP Board of Directors; and WHEREAS, the approved resolution designates a representative for the City to execute a contract with LAPP that permits the Chairman of CAPP to sign a Commercial Electricity Supply Agreement, hereinafter referred to as "City's CESA", for the City's electricity needs and related, necessary services beginning January 1, 2009 and extending up to December 31, 2013, as a member of LAPP and commits its load for the same period pursuant to the contract recommended and approved by the CAPP Board of Directors; and WHEREAS, the approved resolution commits the City to budget and approve funds necessary to pay electricity costs proportionate to the City's load under the City's CESA arranged by CAPP and signed by the Chairman of CAPP for the City; NOW, THEREFORE, in consideration of the mutual promises and agreements hereinafter contained, it is hereby agreed by and between the parties as follows: 1. TERM. The term of the agreement shall be effective as of the date of the agreement and shall terminate pursuant to the term in the City's CESA between the City and the energy company. 2. AUTHORIZATION TO CAPP CHAIRMAN. The City authorizes the Chairman of CAPP to sign the City's CESA for the City's electricity needs and related, necessary services for the period beginning January 1, 2009 and extending up to December 31, 2013. 3. COMMITMENT OF CITY LOAD AND FUNDS. The City commits its electric load to be served by the City's CESA pursuant to the contract recommended and approved by the CAPP Board of Directors and commits to budget and approve funds necessary to pay electricity costs for the City's load served pursuant to the City's CESA. 4. CONSIDERATION. The City agrees to purchase all of its electric energy requirements from the energy company at the contract amount through CAPP for areas where deregulation is in effect. 1813/00/2009 power Ioa081104kpd 5. INDEPENDENT CONTRACTOR. Nothing herein shall be construed as creating the relationship of employer or employee between the City and CAPP or its agents. The City shall not be subject to any obligations or liabilities of Contractor or his/her employees, incurred in the performance of this agreement unless otherwise authorized herein. Contractor is an Independent Contractor and nothing contained herein shall constitute or designate Contractor or any of her employees as employees of the City. Neither Contractor nor her employees shall be entitled to any of the benefits established for City, nor shall they be covered by the City's Worker's Compensation Program. 6. DEFAULT. It is understood that neither CAPP nor its members will assume financial responsibility for City's failure to pay for contracted energy. 7. ENTIRE AGREEMENT. This agreement contains the entire agreement between City and CAPP, and no oral statements or prior written matter not specifically incorporated herein shall be of any force and effect. No amendment, variation, modification or changes hereof shall be binding on either party hereto unless set forth in a document executed by such parties or a duly authorized agent, officer or representative thereof. 8. AVAILABILITY OF FUNDS. Fees for this agreement shall be made from currently available funds. 9. LAW GOVERNING CONTRACT/VENUE. For the purpose of determining the place of agreements and the law governing same, this Agreement is entered into in the City of Colleyville, Tarrant County, Texas, and shall be governed by the laws of the State of Texas. 10. ENTIRE AGREEMENT. This agreement constitutes and expresses the entire agreement between the parties and shall not be amended or modified except by written instrument by both parties. IN WITNESS WHEREOF, the parties have executed this agreement in the City of Colleyville on the day of November 2008. CITY OF COLLEYVILLE Colleyville City Council OCT 2 1 2008 Kelly Coop Interim Cit anager ATTEST ~ ,~/J ~/~ fJ Jf Mary Bunkle~l CAPP Secretary -~. Jay Doegey CAPP Chair an ] 813/00/2009 power 1oa081104kpd ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared Kelly Cooper, Interim City Manager of the City of Colleyville, Texas, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said City of Colleyville, Texas, a municipal corporation, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Colleyville and that he executed the same as the act of the said City for purpose and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ~ day of November, A.D., 2008. • Notary Public, S M' d Toxes ~ •4%,~;~:.~ AAy Commission Expiros: April 12, 2011 N tary ublic in and fort of Texas My Commission expires: ~~ 2oi/ CORPORATE ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF DALLAS BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared Jay Doegey, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that s/he was authorized to execute the same by a resolution of the CAPP Board of Directors for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the ~ ~ day ofd. A.D., 2008. ~~ ~-~~~~ Notary Public In and For the State of Texas My Comn~tissicm,expilre~~~.~,~.:,~.~-,,~,«~,, ~~ r, : ~i ~~"' ~tasy Public ,, ~ ~ F t .. _ 9~fia~~;F=` :U~y Ca~rm Exp 12/06/2008 t 1813/00/2009 power Ioa08ll 04kpd