RES 2010-26 - FAILED
TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2010-26
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS,
AUTHORIZING THE CITIES AGGREGATION POWER PROJECT, INC.
(CAPP) 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 CAPP TO ACT AS AN AGENT ON BEHALF OF THE
TOWN TO ENTER INTO A CONTRACT FOR ELECTRICITY;
AUTHORIZING THE CHAIRMAN OF CAPP 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 TOWN’S COMMITMENTS TO PURCHASE
POWER THROUGH CAPP FOR ITS ELECTRICAL NEEDS THROUGH
DECEMBER 31, 2018; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas (Town) is a member of Cities
Aggregation Power Project, Inc. (“CAPP”), a nonprofit political subdivision corporation
dedicated to securing electric power for its 102 political subdivision members in the
competitive retail market; and
WHEREAS, CAPP negotiated favorable contract terms and a reasonable
commodity price for delivered electricity since 2002 resulting in significant savings for its
members; and
WHEREAS, the Town’s current contract for power with Next Era arranged
through CAPP expires December 31, 2013; and
WHEREAS, the CAPP 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 CAPP and
Next Era endorsed by contract with individual CAPP members; and
WHEREAS, CAPP 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
Resolution 2010-26 1
WHEREAS, experiences in contracting for CAPP load since 2002 demonstrated
that providers demand immediate response to an offer and may penalize delay with
higher prices; and
WHEREAS, suppliers demand assurance that CAPP will pay for all contracted
load; and
WHEREAS, the Town must assure CAPP that it will budget for energy
purchases and honor its commitments to purchase power for its electrical needs
through CAPP for the period beginning January 1, 2011, and extending through
December 31, 2018; and
WHEREAS, CAPP 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 CAPP and Next Era
and Direct Energy have been beneficial and cost effective for CAPP members and the
Town.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Section 1: That the CAPP Board and its consultants and advisors are agents
authorized to negotiate for the Town’s electric power needs as a member of CAPP and
extend the current supply agreement through December 31, 2018.
Section 2: That the Town approves CAPP extending its current contract with
Next Era for the supply of electric power and related, necessary services for the Town
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 CAPP is hereby authorized to sign a
Commercial Electricity Supply Agreement (“CESA”) for the Town pursuant to the
contract approved and recommended by the CAPP 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 Town and that the fixed price for the period 2011-2013 will continue
through December 31, 2018.
Section 4: That the Town will budget and approve funds necessary to pay
electricity costs proportionate to the Town’s load under the supply agreement arranged
by CAPP and the CESA signed by the Chairman of CAPP on behalf of the Town for the
term beginning January 1, 2011 or as soon after finalization of a contract as possible
and extending up to December 31, 2018.
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Section 5: That a copy of this Resolution shall be sent to Mary Bunkley with
the City Attorney’s office in Arlington and Geoffrey M. Gay, legal counsel to CAPP.
Section 6. That this Resolution shall become effective upon its passage in
accordance with law.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club,
Texas, this 6th day of December 2010.
________________________________
Mayor, Connie White
Town of Trophy Club, Texas
ATTEST:
___________________________________
Interim Town Secretary, Shannon DePrater
Town of Trophy Club, Texas
[Seal]
APPROVED AS TO FORM:
____________________________________
Town Attorney, Patricia A. Adams
Town of Trophy Club, Texas