R352RESOLUTION NO. 352
A RESOLUTION OF THE CITY OF KENNEDALE TEXAS,
AUTHORIZING THE TEXAS COALITION FOR AFFORDABLE POWER
(TCAP) 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;
APPROVING TCAP CONTRACTING WITH NEXT ERA AND
AUTHORIZING THE CITY MANAGER TO SIGN A CONTRACT WITH
TCAP FOR THE CITY'S ELECTRICITY NEEDS FOR THE PERIOD
BEGINNING AS SOON AFTER FINALIZATION OF A CONTRACT AS
POSSIBLE AND EXTENDING UP TO DECEMBER 31, 2018
COMMITTING TO BUDGET FOR ENERGY PURCHASE'S AND TO
HONOR THE CITY'S COMMITMENTS TO PURCHASE POWER
THROUGH TCAP FOR ITS ELECTRICAL NEEDS THROUGH
DECEMBER 31, 2015.
WHEREAS, the City of Kemiedale, Texas (City) is a member of Texas Coalition for
Affordable Power ('TCAP), a nonprofit political suhdivisiori corporation dedicated to securing
electric power for its 157 political subdivision members in the competitive retail market; and
WHEREAS, TCAP 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 with Next Era arranged through TCAP
expires December 31, 2013; and
WHEREAS, the TCAP 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
WHEREAS, the current contract is a master agreement between TCAP and Next Era
endorsed by contract with hidividual TCAP members; and
WHEREAS, TCAP 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
WHEREAS, experiences in contracting for TCAP load since 2002 demonstrated that
providers deniand immediate response to an offer° and may penalize delay with higher prices;, and
WHEREAS, suppliers demand assurance that TCAP will pay for all contracted load;
and
WHEREAS, the City must assure TCAP that it will budget for energy purchases and
lionor its commitments to purchase power for its electrical needs through "TCAP for the period
beginning. January 1, 2011 and extending through December 31, 2018; and
WHEREAS, TCAP intends to continue to contract with Next Era (power supply) and
Direct Energy (billing„ administrative and other customer services), and
WHEREAS, the current contractual relationships between TCAP and Next Era and
Direct Energy have been beneficial and cost effective for TCAP members and the City.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF City of Keiniedale,
TEXAS:
Sect "ion. I:
That the TCAP Board and its consultants acid advisors are agents authorized to negotiate for the
City's electricity needs as a member of 'TCAP and extend the current supply agreement through
December 31, 2018,
Section 2:
That the City approves TCAP 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 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 City Manager will execute a contract with TCAP that permits the President of TCAP to
sign a Commercial Electricity 'Supply Agreement (CESA) for the City's electricity needs and
related, necessary services beginning January 1, 2011 and extending up to December 31, 2018,
as a member of TCAP and commits its load for the same period pursuant to the contract
recommended and approved by the TCAP Board of Directors, provided that the energy price to
be paid per IcWh 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 casts proportionate to
the City's load under the supply agreement arranged by TCAP and signed by the President of
TCAP on behalf of all TCAP members for the term beginning as soon after finalization of a
contract as possible and extending tip to December 31, 2018,
Section 5:
That a copy of the resolution shall be sent to Mary Bunkley with the City Attorney's office in
Arlington and Geoffi M. Gay, legal counsel to TCAP.
PRESENTED AND PASSED on this IO day of February, 2011, by a vote of .
ayes and nays at a regular meeting of the City CQLInCil of the City of KENNEDALE,
Texas.
ATTEST;
'F)r L4vttkhm-�r
Bryan L,ankhorst, Mayor
Aniethy t G. Cirmo, City Secretary