Resolution 1996-09
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RESOLUTION NO. 96-9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AUTHORIZING THE CITY ADMINISTRATOR
TO SIGN AND DELIVER: 1) A NATURAL GAS SALES
AND AGGREGATION AGREEMENT APPOINTING ABAG AS
THE CORE TRANSPORT AGENT FOR THE CITY IN
PROCURING THE PURCHASE AND TRANSPORTATION OF
NATURAL GAS AND 2) PG&E' s CUSTOMER AUTHORI-
ZATION FOR CORE GAS TRANSPORTATION SERVICE.
WHEREAS, the City of Gilroy 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, 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
RESOLUT:j:ON NO. 96-9
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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 Gilroy hereby authorizes the participation of the
Public Agency in the ABAG Power Purchasing Pool to undertake a
bulk purchasing program for natural gas on behalf of the Public
Agency and other ABAG members or cooperating members.
BE IT FURTHER RESOLVED, that the City Administrator or
his designee, is authorized to enter into and deliver a Natural
Gas Sales and Aggregation Agreement with ABAG.
BE IT FURTHER RESOLVED, that the Public Agency 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 Administrative
Services Director is appointed the Public Agency's representative
on ABAG's Power Purchasing Pool Committee to oversee the
operation of Power Purchasing Pool Program.
RESOLUTION NO. 96-9
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PASSED AND ADOPTED this 4th day of March, 1996 by the
following vote:
AYES:
COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLISON,
SPRINGER, VALDEZ, GAGE
NOES:
COUNCILMEMBERS: None.
ABSENT: COUNCILMEMBERS:
None.
ATTEST:
APPROVED:
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Mayor
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// City Clerk
RESOLUTION NO. 96-9
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 96-9 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the 4th day of March, 19~, 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 6th day of
March
,19~
City Clerk of the City of Gilroy
(Seal)