HomeMy WebLinkAboutOrdinance 23946-11-2019 ORDINANCE NO. 23946-11-2019
AN ORDINANCE AMENDING CHAPTER 21 "ADMINISTRATION,"
ARTICLE I, "IN GENERAL," OF THE CODE OF THE CITY OF FORT
WORTH, TEXAS (1986), AS AMENDED, BY REVISING SECTION 2-
9(d)(8)(a), "CONTRACT EXECUTION; AMENDMENTS; CHANGE
ORDERS," TO EXTEND THE AUTHORIZED TERM OF ANY
CONTRACT FOR THE PURCHASE OF ELECTRICITY," PROVIDING
THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Code of the City of Fort Worth (1986) ("City Code") currently states
that the term of any contract for the purchase of electricity shall not exceed forty-eight (48)
months("Maximum Term"); and
WHEREAS, City of Fort Worth staff desire to extend the Maximum Term of contracts
for the purchase of electricity; and
WHEREAS, staff recommends that the current City Code provision addressing the term
of electricity contracts be amended to increase the Maximum Term;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, AS FOLLOWS:
SECTION 1.
That Chapter 2, "Administration," Article 1, "In General," Section 2-9(d)(8)(a), "Contract
Execution; Amendments; Change Orders," of the City Code is hereby amended to increase the
Maximum Term to one hundred and twenty (120) months. As amended, Section 2-9(d)(8)(a)
shall read as follows:
(d) Provided that sufficient funds have previously been appropriated by the city
council, the city manager may execute the following without city council approval:
(8) Any contract for the purchase of electricity provided that:
a. The term of any such contract does not exceed 120 months; and
SECTION 2.
This ordinance shall be cumulative of all provisions of ordinances and of the City Code,
as amended, except where the provisions of this ordinance are in direct conflict with the
provisions of such ordinances and such Code, in which event conflicting provisions of such
ordinances and such City Code are hereby repealed.
Ordinance No.23946-11-2019 Page I of 2
SECTION 3.
It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs and sections of this ordinance are severable, and, if any phrase, clause,
sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
ordinance, since the same would have been enacted by the Fort Worth City Council without the
incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
SECTION 4.
All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any
and all violations of the provisions of the ordinance amended herein, which have accrued at the
time of the effective date of this ordinance and, as to such accrued violations and all pending
litigation, both civil and criminal, whether pending in court or not, under such ordinance, same
shall not be affected by this ordinance but may be prosecuted until final disposition by the courts.
SECTION 5.
This ordinance shall take effect upon adoption and publication as required by law.
APPROVED AS TO FORM AND LEGALITY: ATTEST:
A is t Ci Attorney Mary J. V�, City Secretary
ADOPTED:November 19, 2019
EFFECTIVE: November 19, 2019
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Ordinance No.23946-11-2019 Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/19/19 M&C FILE NUMBER: M&C 19-0321
LOG NAME: 21 ELECTRICITY
SUBJECT
Adopt an Ordinance Amending Section 2-9(d)(8)(a)of the City Code in Order to Allow the City Manager to Execute Contracts for the Purchase of
Electricity of up to 120-Months(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending Section 2-9(d)(8)(a)of the City Code in order to allow the City
Manager to execute contracts for the purchase of electricity so long as(i)term of any such contract does not exceed 120-months, and(ii)sufficient
funds have previously been appropriated by the City Council for that purpose.
DISCUSSION:
On January 1,2002,the retail electricity market in Texas was deregulated allowing large electric utility customers to aggregate their accounts when
negotiating electricity service contracts.The City of Fort Worth participates in the Retail Electric Provider(REP)contract program to receive the
best rates for electricity service.
The competitive market for electricity as a commodity is very fluid as prices change several times daily. In order to lock in prices,the City must
have the flexibility to execute a contract in a very short amount of time.To that end,on April 26,2005 the City Council adopted Ordinance
No.16399-04-2005(M&C C-20675)authorizing the City Manager to execute a contract for the purchase of electricity without City Council approval
provided the term of the contract did not exceed 48-months.City contracts for electricity have since ranged from 11-to 48-months with contract
prices approximately ranging from 4.1-to 8.0-cents per kWh.
The City has entered into nine REP contracts to serve the majority of City facilities;three with TXU Energy Retail Company,two with Reliant Energy
Retail Services,and four with Champion Energy Services.The City has primarily signed Electric Sales Agreements with the Texas General Land
Office(GLO)through its State Power Program(SPP),a part of the GLOs State Energy Marketing Program(SEMP)offering natural gas and
electricity competitively only to public entities. Since 2010,Champion Energy Services has been the REP serving SPP customers such as the
City.
This ordinance will allow the City to take advantage of market trends and lower prices by allowing the City Manager to execute a REP contract with
a term of up to 120 months.City staff may negotiate lower prices associated with the longer terms and will be able to lock in those prices for a
longer period of time.City staff will notify the City Council of the terms and conditions of any new contract as soon as possible following execution.
Pursuant to Texas Local Government Code Section 252.022(a)(15),purchases of electricity are exempt from competitive bidding and competitive
proposal requirements.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that this action will have no material effect on City funds.
Submitted for City Manager's Office by: Kevin Gunn 2015
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Roger Venables 6334