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HomeMy WebLinkAboutOrdinance 14689 ORDINANCE NO. ~ ~(/~ l AN ORDINANCE AMENDING CHAPTER 2 "ADMINISTRATION" OF THE CODE OF THE CITY OF FORT WORTH (1986), AS AMENDED, BY PROVIDING THAT CONTRACTS FOR THE PURCHASE OF ELECTRICITY MAY BE EXECUTED BY THE CITY MANAGER WITHOUT CITY COUNCIL APPROVAL SO LONG AS THE TERM OF SUCH CONTRACT DOES NOT EXCEED TWENTY-FOUR (24) MONTHS AND SUFFICIENT FUNDS HAVE PREVIOUSLY BEEN APPROPRIATED BY THE CITY COUNCIL FOR THAT PURPOSE, AND FURTHER PROVIDING THAT THIS ORDINANCE IS CUMULATIVE, PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT SECTION 1 Section 2-9 ("Contract execution, change orders") of the Code of the City of Fort Worth, Texas (1986), as previously amended, is hereby amended by adding a subsection (f), which shall read as follows Sec. 2-9. Contract execution, change orders. (f) Any contract for the purchase of electricity maybe executed by the City Manager without City Council approval provided that (i) the term• of any such contract does not exceed twenty-four (24) months and (ii) sufficient funds have previously been appropriated by the City Council for that purpose SECTION 2. This Ordinance shall be cumulative of all ordinances of the Crty, except where the provisions of this Ordinance are m direct conflict with the provisions of such other ordinances, m which case the conflicting provisions of such other ordinances are hereby repealed. SECTION 3 The sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable If any portion of this Ordinance is declared illegal or unconstitutional by the valid final judgment or decree of any court of competent ~unsdiction, such illegality or unconstitutionality shall not affect the legality and enforceability of any of the remaining portions of this Ordinance. SECTION 4 This Ordinance shall be m full force and effect upon its adoption. AND IT IS SO ORDAINED ADOPTED AND EFFECTIVE ~I~/ D~D ~ M&C l~ ` ~ ~j f~(~~ APPROVED AS TO FORM AND LEGALITY By• Peter Vaky Assistant Crty Attorney 2 City of Fort Worth, Texas ~1-~Ayor Arid Caunc~( Can~n~~n~cAt~an DATE REFERENCE NUMBER LOG NAME PAGE 7/10/01 G-13298 12ELECTRICITY 1 of 2 SUBJECT ORDINANCE AMENDING SECTION 2-9 OF THE CITY CODE IN ORDER TO ALLOW THE CITY MANAGER TO EXECUTE CERTAIN CONTRACTS WITHOUT CITY COUNCIL APPROVAL FOR THE PURCHASE OF ELECTRICITY RECOMMENDATION It is recommended that the City Council adopt the attached ordinance amending Section 2-9 of the City Code in order to allow the City Manager to execute contracts for the purchase of electricity so long as (i) the term of any such contract does not exceed twenty-four months, and (ii) sufficient funds have previously been appropriated by the City Council for that purpose DISCUSSION Effective January 1, 2002, most electric utilities operating in Texas will be required to provide access to their distribution systems by other power suppliers who wish to enter the market and to compete with these new power suppliers. Consumers will be able to shop for electricity in much the same way they can shop for a local or long distance telephone provider since the telecommunications industry was deregulated A statewide pilot project is currently underway that will allow the City to place certain electricity accounts with competitive suppliers prior to the advent of deregulation on January 1, 2002 Most municipalities of notable size are joining political subdivision corporations, which are authorized under state law, to negotiate for the purchase of electricity on behalf of their members By joining these corporations, cities may enter into contracts with suppliers of electricity at a better price and service level than on a stand-alone basis This process is called "aggregation" and the political subdivision corporations engaging in the process are called "aggregators " The City has joined two aggregators, the Texas CUC Aggregation Project, and the Cities Aggregation Power Project, Inc. In addition, the City is discussing options with various power suppliers on its own in the event that the aggregators are unable to negotiate a deal that is advantageous to the City The current competitive market for electricity is very fluid Prices change daily In order to lock in prices, both the aggregators and the City on its own must have the flexibility to execute a contract for the purchase of electricity in a very short amount of time City staff has previously discussed this matter as well as the recommendation set forth in this Mayor and Council Communication with the City Council's ad hoc Committee on Electric Deregulation The attached ordinance will allow the City Manager to execute a contract for the purchase of electricity without City Council approval provided that (i) the term of the contract is twenty-four months or less, and (ii) the City Council has previously appropriated sufficient funds for that purpose This ordinance will allow the City to enter into contracts for electricity at an advantageous price In that situation, City staff will notify the City Council of the terms and conditions of the contract as soon as possible following execution Pursuant to Section 252 022(a)(15) of the Texas Local Government Code, purchases of electricity are exempt from competitive bidding and competitive proposal requirements City of Fort Worth, Texas ~1-~A~ar And Council an~tmun~cA~ian C DATE 7/10/01 REFERENCE NUMBER G-13298 LOG NAME 12ELECTRICITY PAGE 2 of 2 SUBJECT ORDINANCE AMENDING SECTION 2-9 OF THE CITY CODE IN ORDER TO ALLOW THE CITY MANAGER TO EXECUTE CERTAIN CONTRACTS WITHOUT CITY COUNCIL APPROVAL FOR THE PURCHASE OF ELECTRICITY FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action will have no material effect on City funds. CB k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by:,~ (to) : :" .F I~PPROVEfl Charles Boswell 8511 ~~/ n/Z~ l~}/~~~ Originating Department Head: 1 Vl1VI~IW JUL 10 2001 David Yett 7606 (from) ~ Additional Information Contact: `' l~~aJ C~~M Fo~9/o~ T ~o David Yett 7606 . Adont~d Ordinance No. ~~'