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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 1831/00/2009 power Ioa081104kpd ATTEST Armando Chapa, City Secretary ATTEST STAP Secretary a, ~~~~{~.~o~2Y1.og....._.. SECRffARV~j. CITY OF CORPUS CHRISTI N ~ >/~ gel R. Escobar, Interim City Manager J' Darling AP Chairman 1831/00/2009 power loa081104kpd 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 . ~. ~~`£ HOLLYHOIIGHt~N MY COMMISSION E%flRES ~-I,~ n A A n ~, ~•` Sepanber24,2072 (IS.ILV=~r 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: ',~/ ~ ,~y.. sCOB~ ~., ~'~;; M~ MI EXPIRES ~~~ ,MIy t5, 2012 ` 47~. 1831/00/2009 power Ioa081104kpd 4