HomeMy WebLinkAboutCity Council Resolution 96-12 RESOLUTION NO. 96-12
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
AUTHORIZING THE CITY MANAGER TO SIGN AND DELIVER AGREEMENTS
IN CONNECTION WITH THE ABAG POWER PURCHASING POOL
WHEREAS, the City of Saratoga (Public Agency) is currently
purchasing natural gas and related transportation and distribution
services from an entity providing natural gas (Utility) to the
Public Agency under the jurisdiction of the California Public
Utilities Commission (CPUC); and
WHEREAS, deregulation of the natural gas industry in 1986 and
CPUC Decisions Nos. 91-02-040, 94-04-027 and 95-07-048, end
regulation promulgated thereunder, and permit Utility customers,
including local governments, to purchase natural gas and specified
related support services from third parties through a "core
transport agent;" and
WHEREAS, bulk purchasing of natural gas has proven itself to
be a legal and cost-effective means to achieve reductions in energy
costs; and
WHEREAS, the Public Agency is a member/cooperating member of
the Association of Bay Area Governments (ABAG); and
WHEREAS, ABAG proposes to (1) form a Power Purchasing Pool
Program to aggregate natural gas needs of interested ABAG members
and cooperating members, and (2) act as a core transport agent on
behalf of such members, and (3) deliver or cause to be delivered
natural gas and related services (including invoicing and gas
management) to such members, and (4) form a Power Purchasing Pool
Committee comprised of representatives from each participating
member or cooperating member and grant it the power to oversee the
Program; and
WHEREAS, ABAG may issue short-term debt in order to finance
security deposit requirements and/or cash flow deficits incurred by
ABAG in operating the Power Purchasing Pool Program which debt may
be secured by the assignment, encumbrance or hypothecation of the
Natural Gas Sales and Aggregation Agreement between ABAG and the
Public Agency.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the
City of Saratoga hereby authorizes the participation of the City in
the ABAG Power Purchasing Pool to undertake a bulk purchasing
program for natural gas on behalf of the City and other ABAG
members or cooperating members.
BE IT FURTHER RESOLVED, that the City Manager, or his/her
designee, is authorized to enter into and deliver (1) the Natural
Gas Sales and Aggregation Agreement with ABAG, in substantially the
form set forth in [the attached Exhibit A or the copy on file with
the City Clerk] appointing ABAG as the core transport agent for the
City in procuring the purchase and transportation of natural gas
and related services and (2) the Utility's Customer Authorization
for Core Gas Transportation Services.
BE IT FURTHER RESOLVED, that the City of Saratoga consents to
the assignment, encumbrance or hypothecation of the Natural Gas
Sales and Aggregation Agreement with ABAG for the sole purpose of
securing short-term financing of the security deposit requirement
and/or cash flow deficits incurred by ABAG in implementing the
Power Purchasing Pool Program.
FINALLY, BE IT ALSO RESOLVED, that the Director of Public
Works is appointed the City's representative on ABAG's Power
Purchasing Pool Committee to oversee the operation of Power
Purchasing Pool Program.
PASSED AND ADOPTED this 21st day of February , 1996
AYES: Councilmembers Burger, Moran, Tucker, Wolfe and Mayor Jacobs
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: