HomeMy WebLinkAboutRESO 97851
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Resolution No. 9785
Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Purchase
Gas Requirements from the City of Redding Under
Specified Terms and Conditions during Calendar Years 2018 through 2030, Inclusive
RECITALS
A. On April 19, 2012, the Council adopted Resolution #9244 amending the
Gas Utility LongTerm Plan (GULP) Objectives, Strategies, and Implementation Plan to
discontinue the laddering purchase strategy and implement gas supply rates that change
monthly according to market prices, as described in Staff Report #2552.
B. In accordance with GULP, the City must purchase and, incidental to
purchases, sell gas to meet the needs of its gas customers by contracting for terms varying
from less than one month to one month. The City's Energy Risk Management Policies,
described in Staff Report #5026, provide that the City will purchase only that quantity of gas
meeting its load requirements at the time a transaction is executed.
C. By Ordinance No. 5387, adopted August 15, 2016, Council approved
changes to the Municipal Code specifically streamlining the purchase and sale of wholesale
utility commodities and services and explicitly allowing for standard form Master Agreements.
D. The standard form Master Agreement is based on the North American
Energy Standards Board, Inc. (NAESB) Base Contract for Sale and Purchase of Natural Gas 2006
version and includes Special Provisions and a Credit Support Addendum.
E. By Resolution 9586 adopted May 16, 2016 and by Resolution 9627
adopted October 4, 2016, Council Authorized the City Manager to purchase a portion of the
terms and conditions during calendar years 2016 through 2022, inclusive.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby authorizes the City Manager or his designee, the
General Manager
the City of Redding by negotiating one or more individual transactions, including, but not
limited to, contracts, addenda, confirmations, and transactions.
SECTION 2. The purchases negotiated under Section 2 shall conform to the
following requirements:
a. The maximum expenditure with the City of Redding will be $100 million;
DocuSign Envelope ID: 9BB96239-77AD-479A-BDB1-B15B709A19E7
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b. The maximum term of any transaction shall not exceed three years,
commencing on the delivery date of the transaction. The sentence preceding
notwithstanding, the City may enter into a transaction greater than three years,
if the Council grants prior approval to such transaction;
c. No transaction entered into with any of the referenced suppliers shall exceed
beyond December 31, 2030.
SECTION 3. The Council hereby finds and determines that the adoption of this
Resolution does not constitute a project under Public Resources Code Section 21065, thus no
California Environmental Quality Act assessment is required.
INTRODUCED AND PASSED: August 13, 2018
AYES: DUBOIS, FILSETH, FINE, HOLMAN, KNISS, KOU, SCHARFF, TANAKA, WOLBACH
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk For Mayor
APPROVED AS TO FORM: APPROVED:
Counsel to the City of Palo Alto City Manager
Director of Administrative Services
Director of Utilities
DocuSign Envelope ID: 9BB96239-77AD-479A-BDB1-B15B709A19E7
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