HomeMy WebLinkAboutC2008-437 - 10/28/2008 - ApprovedLETTER OF AGREEMENT
That this agreement is made and entered into this day of , 2008 by and
between the City of Corpus Christi, Texas, a home rule municipality organized and existing
under the laws of the State of Texas, hereinafter referred to as "City" and South Texas
Aggregation Project, hereinafter referred to as "STAP".
WHEREAS, the City is a member of STAP, a nonprofit political subdivision corporation
dedicated to securing electric energy for its 48 members in the competitive retail mazket; and
WHEREAS, it is necessary for STAP and the City to contract for a supply of electricity
before December 31, 2008, or revert to high price standazd contracts and independently shop for
a power contract; and
WHEREAS, the City Council previously passed a resolution authorizing the STAP 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 STAP Board of Directors, at price not to exceed 8.5
cents per kilowatt hour at wholesale level; and
WHEREAS, the approved resolution designates the City Manager for the City to execute
a contract with STAP that permits the Chairman of STAP 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, at
price not to exceed 8.5 cents per kilowatt hour at wholesale level, as a member of STAP and
commits its load for the same period pursuant to the contract recommended and approved by the
STAP 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 STAP and signed by the Chairman of STAP 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 STAP CHAIItMAN. The City authorizes the Chairman of
STAP 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, at price not to exceed 8.5 cents per kilowatt hour at wholesale level.
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
2008-437
10/28/08
Res. 027917
i
So. Tx Aggregation Project
STAP 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 STAP for areas where
deregulation is in effect
5. INDEPENDENT CONTRACTOR. Nothing herein shall be construed as creating the
relationship of employer or employee between the City and STAP or its agents. The City
shall not be subject to any obligations or liabilities of Contractor or 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. DEFAiJLT. It is understood that neither STAP nor its members will assume financial
responsibility for City's failure to pay for contracted energy.
ENTIRE AGREEMENT. This agreement contains the entire agreement between City
and STAP, 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
Corpus Christi, Nueces 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.
have, executed this agreement in the City of
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ATTEST
Armando Chapa, City Secretary
ATTEST
STAP Secretary
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SECRffARV~j.
CITY OF CORPUS CHRISTI
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gel R. Escobar, Interim City Manager
J' Darling
AP Chairman
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ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF h ~~
BEFORE ME, the undersigned authority, a Notary Public in and for said County and
State, on this day personally appeared `Angel R. Escobar, Interim City Manager of the City of
Corpus Christi 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 Corpus Christi, Texas, a municipal corporation, that he was duly
authorized to perform the same by appropriate resolution of the City Council of the City of
Corpus Christi 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.
GNEN UNDER MY HAND AND SEAL OF OFFICE this ~ day of
(JUVtyyt~,y , A.D.,p20~Q .
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MY COMMISSION E%flRES ~-I,~ n A A n
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of Pub is in and f the State of Texas
My Commission expires:
STATE OF TEXAS
COUNTY OF DALLAS
CORPORATE ACKNOWLEDGMENT
BEFORE ME, the undersigned authority, a Notary Public in and for said County
and State, on this day personally appeared Jim Darling, 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 STAP Board of Directors for the purposes
and consideration therein expressed.
GNEN UNDER MY HAND AND SEAL OF OFFICE this the C,~day of
A.D., 2008.
Notary Public In and For the State of Texas
My Commission Expires:
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