HomeMy WebLinkAbout2001-03-12 City Council (19)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
TITLE:
CITY MANAGER CMR: 161:01
MARCH 12, 2001
RESOLUTION AUTHORIZING TI-I~ CITY TO ENTER INTO
A CONTRACT WITH ENRON
RECOMMENDATIONS
Staff recommends that the Council approve the proposed resolution authorizing the City
Manager to execute the Enfolio® Master Firm Purchase/Sales Agreement with Enron North
America Corporation.
DISCUSSION
The City Manager has the authority to enter into contracts for commodity purchases and sales
for terms of up to three years. Staff has been working with several natural gas suppliers to
develop contracts to buy and sell gas as needed to implement its natural gas purchasing
strategy for terms of less than three years.
Enron North America Corp. (Enron) is one supplier with which staff wishes to execute a
contract. Enron, through its Enfolio® Master Firm Purchase/Sales Agreement, requires the
City to demonstrate legal authorization to enter into a contract for the purchase and sale of
physical natural gas. The City Attorney has advised that the required legal authority could
be demonstrated with the proposed resolution.
RESOURCE IMPACT
Approval of the proposed resolution has no impact on financial or personnel resources.
CMR: 161:01 Page 1 of 2
POLICY IMPLICATIONS
Approval of the proposed resolution memorializes the current legal authority present in the
City’s municipal code and neither creates any new policy nor contradicts with any existing
policy,
ENVIRONMENTAL REVIEW
Approval of the proposed resolution does not constitute a project under the California
Environmental Quality Act and, therefore~ is exempt from the environmental assessment
requirement.
ATTACHMENT
Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute
the Enfolio® Master Firm Purchase/Sale Agreement with Enron North America Corp.
PREPARED BY: Jane Ratchye,. Senior Resource Planner
Girish Balachandran, Supply Resources Group Manager
DEPARTMENT HEAD APPROVAL:
of Utilities
CITY MANAGER APPROVAL:
Assistant to the City Manager
CMR:161:01 ~ Page 2 of 2
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AUTHORIZING THE CITY MANAGER TO EXECUTE THE
ENFOLIO®MASTER FIRM PURCHASE/SALE AGREEMENT
WITH ENRON NORTH AMERICA CORP.
WHEREAS, the City of Palo Alt0 ("City") is a municipal
corporation and a charter city, duly and validly created,
organized and existing under the constitution and laws of the
State of California;
WHEREAS, the City has the full legal right, power and
authority to execute contracts for the purchase of electricity
and natural gas under California law, the Charter of the City of
Palo Alto and the Palo Alto Municipal Code;
WHEREAS, the City wishes to procure natural gas from
Enron Nogth American Corp. ("Enron") for consumption by its
utility customers;
NOW, THEREFORE, the Council of the City of Palo Alt0
does hereby RESOLVE as follows:
SECTION i. The Council hereby authorizes the City
Manager to execute the Enfolio® Master Firm Purchase/Sale
Agreement ("Agreement") and related exhibits with Enron, and to
undertake all actionsnecessary, to exercise its rights and
perform its obligations, under the Agreement.
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010308 syn 0071988
SECTION 2. The Council finds that the adoption of this
resolution does not constitute a project under the California~
Environmental Quality Act and the CEQA Guidelines and,therefore, no environment assessment is required.
INTRODUCED AND. PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED.AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Utilities
Director of Administrative
Services
010308 syn 0071988