HomeMy WebLinkAbout028877 RES - 12/07/2010RESOLUTION
AUTHORIZING THE SOUTH TEXAS AGGREGATION PROJECT, INC.
(STAP) TO NEGOTIATE AN EXTENSION TO THE CURRENT ELECTRIC
SUPPLY AND NECESSARY RELATED SERVICES AGREEMENT WITH
NEXT ERA FOR A FIXED PRICE PER KWH THAT IS LOWER THAN
CONTRACT RATES FOR 2011-2013, SAID EXTENSION TO CONTINUE
UNTIL DECEMBER 31, 2018; AUTHORIZING STAP TO ACT AS AN AGENT
ON BEHALF OF THE CITY TO ENTER INTO A CONTRACT FOR
ELECTRICITY; AUTHORIZING THE CHAIRMAN OF STAP TO EXECUTE
AN EXTENSION TO THE CURRENT ELECTRIC SUPPLY AGREEMENT
FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2011 OR AS
SOON AFTER FINALIZATION OF A CONTRACT AS POSSIBLE;
COMMITTING TO BUDGET FOR ENERGY PURCHASES AND TO HONOR
THE CITY'S COMMITMENTS TO PURCHASE POWER THROUGH STAP
FOR ITS ELECTRICAL NEEDS THROUGH DECEMBER 31, 2018.
WHEREAS, the City of Corpus Christi, Texas (City) is a member of South Texas Aggregation
Project, Inc. ("STAP"), a nonprofit political subdivision corporation dedicated to
securing electric power for its 52 political subdivision members in the competitive
retail market; and
WHEREAS, STAP negotiated favorable contract terms and a reasonable commodity price for
delivered electricity since 2002 resulting in significant savings for its members;
and
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
the City's current contract for power with Next Era arranged through STAP
expires December 31, 2013; and
the STAP Board of Directors is currently considering a blend and extend contract
with Next Era with indicative retail energy prices that will reduce the prices under
the current contract for the next three years and extend a fixed price for energy
through December 31, 2018; and
the current contract is a master agreement between STAP and Next Era endorsed
by contract with individual STAP members; and
STAP must be able to commit contractually to prices in a blend and extend
contract amendment within a 24-hour period in order to lock -in favorable prices;
and
experiences in contracting for STAP load since 2002 demonstrated that providers
demand immediate response to an offer and may penalize delay with higher
prices; and
suppliers demand assurance that STAP will pay for all contracted load; and
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WHEREAS,
WHEREAS,
WHEREAS,
the City must assure STAP that it will budget for energy purchases and honor its
commitments to purchase power for its electrical needs through STAP for the
period beginning January 1, 2011, and extending through December 31, 2018; and
STAP intends to continue to contract with Next Era (power supply) and Direct
Energy (billing, administrative and other customer services); and
the current contractual relationships between STAP and Next Era and Direct
Energy have been beneficial and cost effective for STAP members and the City.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
Section 1:
That the STAP Board and its consultants and advisors are agents authorized to negotiate
for the City's electric power needs as a member of STAP and extend the current supply
agreement through December 31, 2018.
Section 2:
That the City approves STAP extending its current contract with Next Era for the supply
of electric power and related, necessary services for the City for a term to begin January 1, 2011
or as soon after finalization of a contract as possible and extending up to December 31, 2018, so
long as the extension results in savings over the current contract term of 2011-2013 and results in
fixed prices through December 31, 2018.
Section 3:
That the Chairman of STAP is hereby authorized to sign a Commercial Electric Service
Agreement ("CESA") for the City pursuant to the contract approved and recommended by the
STAP Board of Directors within 24 hours of said approval and recommendation, provided that
the energy price to be paid per kWh in 2011-2013 is less than the current contract price for 2011-
2013 resulting in savings for the City and that the fixed price for the period 2011-2013 will
continue through December 31, 2018.
Section 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 STAP and the CESA
signed by the Chairman of STAP on behalf of the City for the term beginning January 1, 2011 or
as soon after finalization of a contract as possible and extending up to December 31, 2018.
Section 5:
That a copy of the resolution shall be sent to Geoffrey M. Gay, legal counsel to STAP.
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ATTEST:
THE CITY OF CORPUS CHRISTI
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Armando Chapa Joe Ad
City Secretary Mayor
APPROVED: day of November, 2010
Lisa Agui
Assistant ity Attorney
For City Attorney
3
CorpusjChristi, Te
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CO/111.12 , 2010
The above resolution was passed by he following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John E. Marez
Nelda Martinez
Mark Scott
Linda Strong
Resolution Vote Sheet
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