Resolution 1995-71
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RESOLUTION NO. 95-71
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AUTHORIZING THE CITY OF GILROY'S
PARTICIPATION IN ABAG' s POWER PURCHASING
POOL AND AUTHORIZING THE CITY ADMINISTRATOR
TO ENTER INTO SIMILAR AGREEMENTS.
WHEREAS, the City of Gilroy is currently purchasing
natural gas and related transportation and distribution services
from Pacific Gas & Electric (PG&E); and
WHEREAS, energy rates in the Bay Area are among the
highest in the nation, particularly for natural gas (and
electricity); and
WHEREAS, deregulation of the natural gas industry in
1986 and deregulation of the electric services industry currently
under consideration by the California Public Utilities Commission
and the State legislature is creating new opportunities for local
governments to lower their energy costs through collective
action; and
WHEREAS, there are no existing power purchasing pools
for Bay Area local governments interested in lower energy costs;
and
WHEREAS, bulk purchasing of natural gas has proven
itself to be a legal and cost-effective means to achieve
reduction in energy costs through the use of a competitive bid
program; and
WHEREAS, it would greatly benefit the City of Gilroy to
be prepared to take advantages of any coming changing in the
regulation of the electric market; and
WHEREAS, the City of Gilroy is a member/associate member
of the Association of Bay Area Governments (ABAG); and
RESOLUTION NO. 95-71
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WHEREAS, ABAG, in conjunction with New Energy Ventures,
Inc. (NEV) , proposes to form a Power Purchasing Pool Program to
aggregate natural gas needs of interested ABAG members and
associate members, to collectively negotiate a purchase of
natural gas and transportation services through a competitive
request for proposals, and to negotiate an agreement with PG&E
for distribution of natural gas.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of
the City of Gilroy hereby authorizes the participation of the
City of Gilroy in the ABAG Power Purchasing Pool to undertake a
bulk purchasing program for natural gas and electricity (when
legally authorized by the California Public Utilities Commission
on behalf of the City of Gilroy and other ABAG members or
cooperating members.
BE IT FURTHER RESOLVED, that the City Administrator, or
his designee, is authorized to enter into a subscription
agreement with ABAG, in substantially the form set forth in the
attached Exhibit A appointing ABAG as the agent for the City of
Gilroy in negotiating a distribution agreement with PG&E, issuing
a Request for Proposal for the purchase and transportation of
natural gas and negotiation of a contract with the responsive,
responsible proposer proposing the lowest costs.
FINALLY, BE IT ALSO RESOLVED, that the City
Administrator is authorized to execute and deliver the contracts
negotiated by ABAG on behalf of the City of Gilroy and is
appointed the City of Gilroy'S representative on ABAG's Power
Purchasing Committee to oversee the operation of Power Purchasing
Pool program.
RESOLUTION NO. 95-71
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PASSED AND ADOPTED this 16th day of October, 1995 by the
following vote:
AYES:
COUNCILMEMBERS: GILROY, KLOECKER, MORALES, ROGERS,
ROWLISON, VALDEZ, GAGE
NOES:
COUNCI LMEMBERS : NONE .
ABSENT: COUNCILMEMBERS: NONE .
APPROVED:
Ha~j.V
Susanne E. Steinmetz,
rk
RESOLUTION NO. 95-71
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 95 71 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the 16th day of
October
, 19....2.L,
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this 17th day of
October
,1995.
Gilroy
(Seal)