HomeMy WebLinkAbout025029 RES - 09/17/2002RESOLUTION
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE
AN ELECTRIC SUPPLY AGREEMENT PURSUANT TO THE CONTRACT
TO BE SIGNED BY SOUTH TEXAS AGGREGATION PROJECT, INC. FOR
DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2003
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 42 members in the competitive retail market; and
WHEREAS, STAP negotiated favorable contract terms and a reasonable commodity
price for delivered electricity in 2002 for its members; and
WHEREAS, STAP anticipates preserving current contract terms and achieving
improvement in current commodity prices in a contract for 2003; and
WHEREAS, STAP believes that the pricing opportunity window for favorable 2003
deliveries will be short-lived and that STAP members must be able to commit contractually to
prices within a 24-hour period in order to lock-in favorable prices; and
WHEREAS, experience during 2001-2002 has demonstrated that Retail Electric
Providers demand immediate response to an offer; and
WHEREAS, the deregulated electric market is complex, likely to penalize those unaware
of its constraints and likely to reward those who can improve the size and shape of a particular
load, the City benefits from jointly shared experience and collective purchasing power arranged
through STAP; and
WHEREAS, it is necessary for the City to contract for a supply of electricity in 2003 or
at least partially revert to prices to beat rates (PTB); and
WHEREAS, STAP's current delivered energy prices provide savings when measured
against PTB, and PTB rates likely will be increased before the end of the year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The City manager or his designee is hereby authorized to sign an electric
power agreement pursuant to the contract approved and recommended by the STAP Board of
Directors within 24 hours of said approval and recommendation. The contract may be for a 12 to
24 month time frame.
SECTION 2. A copy of the resolution shall be sent to Geoffrey Gay with Lloyd,
Gosselink, Blevins, Rochelle, Baldwin & Townsend at 111 Congress Avenue, Suite 1800,
O25O29
Austin, Texas, 78701 before September 30, 2002.
ATTEST:
Armando Chapa
City Secretary
APPROVED THIS THE ~5 DAY OF
James R. Bray, Jr., City Attorney
-Samuel L. Neal, Jr. / /
Mayor, City of Corpus Chri~rti
/~f~.'~ u$~- , 2002:
Corpus Christi, Texas
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Henry Garrett
Rex A. Kiimison
Bill Kelly
John Longoria
Jesse Noyola
Mark Scott
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