HomeMy WebLinkAboutResolution No. UB- 09-C0070 0
RESOLUTION NO. 09-C7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AZUSA, CALIFORNIA, AUTHORIZING THE
PROCUREMENT OF MULTI-YEAR SUMMER
ELECTRIC PEAKING POWER
WHEREAS, the City has developed a portfolio of long term, medium term
and short term electric power resources to serve city's electricity needs; and
WHEREAS, city has relied upon power purchase agreements with third parties which
include alternating contract periods or durations (one to five-year contracts) for the summer
electric peaking power; and
WHEREAS, in light of the expiration of existing summer peaking power contract at the
end of 2009 summer season and the steeply declining energy markets due to economic downturn,
staff believes now is the appropriate time to consider medium term power procurement; and
WHEREAS, due to the price volatility of power markets, it is warranted that City Council
authorize the staff to engage in the procurement within the specific parameters and guidelines to
efficiently carry out the procurement; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY
RESOLVE AS FOLLOWS:
SECTION 1. That the City Council authorize the procurement of medium term summer
peaking electric power in accordance with the following parameters and
guidelines:
1. Authorized staff, The Director of Utilities or Assistant Director — Resource
Management
2. Authorized Product: Up to 15 MW of summer peaking electric power for the months of
June through September
3. Allowable duration of the transaction: Up to 5 years in duration commencing June
2010 and ending no later than September 2014
4. Trigger prices: The prices of summer peaking electric power that could trigger the
procurement shall not exceed $85/MWh on average
5. Frequency of trigger: The authority to trigger the procurement shall not be exercised
more than once during any 12 -month period, e.g., if a procurement took place in January
2009, then the next time the authority can be exercised again shall be no sooner than
January 2010 unless further authorized by the City Council
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6. Solicitation process: Whenever feasible, a formal Request for Proposal (RFP) will be
utilized. However, if due to market volatility; lack of creditworthy counterparties to
transact and/or other factors making the RFP process infeasible or ineffective, then staff
will conduct the solicitation in the most competitive manner possible
7. Reporting: Staff shall report to Utility Board/City Council in the regularly scheduled
Utility Board meeting immediately subsequent to the procurement, providing price
information; duration; start and end dates of the transaction; the transaction volume and
the solicitation process used
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED THIS 26th day of January, 2009.
Jos Rocha, Mayor
ATTEST:
Vera Mendoza, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 09-C7, was duly adopted by the Utility
Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water Utility
Board on the 26th day of January, 2009, by the following vote of the Council:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
_a - /111'
Vera Mendoza, City Clerk