HomeMy WebLinkAbout2016-06-06 Ordinance 5384160414 jb 6053732 1
Ordinance No. 5384
Ordinance of the Council of the City of Palo Alto Repealing Ordinance No.
4936, Which Authorized the City Manager to Purchase a Portion of the
ents from Certain Prequalified Natural Gas
Suppliers Under Specified Terms and Conditions During Calendar Years
20072022, Inclusive
The City Council finds and declares as follows:
A. On March 12, 2007, the City Council adopted an ordinance authorizing
the City
prequalified natural gas suppliers under specified terms and conditions during calendar years
20072022, inclusive, with a maximum expenditure limit of $65 million in for each Master
Agreement.
B.
Energy North America (U.S.) L.P., and Mercuria Energy Gas Trading L.L.C., have been active
based gas purchases, and only $7.5 million of the approved $65
million expenditure limit remains for Mercuria Energy Gas Trading L.L.C. as of February 29,
2016. An increase in the maximum expenditure limit is needed to continue to purchase natural
C. The Council intends to adopt a resolution authorizing the City Manager to
purchase natural gas from one or more prequalified suppliers for delivery during calendar
years 2016 through 2022, inclusive, so long as the supplier with whom the City negotiates a
specific purchase transaction continues to be qualified and otherwise eligible to transact with
the City. Increasing the expenditure limit will provide for an estimated five years of gas
purchases.
D.
processes. Therefore, staff recommends that Council repeal Ordinance 4936, and instead
adopt a resolution to be recommended for Council approval on May 16, 2016, outlining the
terms and conditions under which the City Manager can purchase a portion of
gas requirements.
NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Ordinance 4936, Authorizing the City Manager to Purchase a Portion
of the City's Natural Gas Requirements from Certain Prequalified Natural Gas Suppliers under
Specified Terms and Conditions During Calendar Years 2007 Through 2022, Inclusive is repealed
in its entirety.
DocuSign Envelope ID: 847529F7-6757-4389-BC52-87283186A492
160414 jb 6053732 2
SECTION 2. The Council hereby finds and determines that the repeal of this
Ordinance does not constitute a project under Public Resources Code Section 21065, thus no
California Environmental Quality Act assessment is required.
SECTION 3. This ordinance shall be effective on the 31st day after its adoption.
INTRODUCED: May 16, 2016
PASSED: June 6, 2016
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID,
WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
City Attorney City Manager
Director of Administrative Services
DocuSign Envelope ID: 847529F7-6757-4389-BC52-87283186A492
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