HomeMy WebLinkAboutReso 2004-118
RESOLUTION NO. 2004-118
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING THE FORMAL BID PROCESS
PURSUANT TO MUNICIPAL CODE SECTION 2,56.070 ANI'>
AUTHORIZING THE CITY MANAGER TO ENIER INTO A
DIRECT ACCESS AGREEMENT WITH AN ENERGY
SERVICE PROVIDER FOR ELECTRICITY SUPPLY FOR
ELIGIBLE CITY FACILITIES
WHEREAS, under deregulation, electricity customers were allowed to purchase
electricity from an Energy Service Provider ("ESP") other than the local utility. This practice is
known as "Direct Access"; and
WHEREAS, in 1998, the City purchased hydroelectric generated - green power -
through a SANDAG organized purchasing pool- the Power Pool; and
WHEREAS, in June 2000, the Power Pool was disbanded when ESP would not agree to
an extension. On September 20, 2001 the California Public Utilities Commission (CPUC)
suspended Direct Access (DA). On May 8, 2003 the CPUC issued Decision D.03-05-034, which
determined the rights and obligations of DA customers to switch between bundled service and
direct access; and
WHEREAS, staff was informed that it has until April 17, 2004 to receive, evaluate and
state it's intent to select an ESP. Staff issued a letter to this effect but the City is under no
obligation to finalize a contract. The City has until June 17, 2004 to implement the switch to
Direct Access; and
WHEREAS, purchases of power as a commodity is extremely time and condition
sensitive (day ahead or even hour ahead timing can be crucial to price) and delay could cause the
offer to be withdrawn or significantly modified; and
WHEREAS, in evaluating proposals received, staff will consider a potential portfolio of
"addenda" for power use if feasible to hedge the seasonal and time volatility; and
WHEREAS, based on extreme time constraints, the efforts to solicit bids from qualified
ESPs and the non exclusive nature of the agreement, staff requests the Council determine that it
is impractical to apply bidding requirements to these agreements and the City's interest are
materially better served by waiving the formal bid process and authorizing the City Manager to
enter into Direct Access agreements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby waive the formal bid process pursuant to Municipal Code, Section 2.56.070
and authorize the City Manager to enter into a "Direct Access" agreement with the Energy
Service Provider for electricity supply for eligible City facilities provided the terms of said
agreement are more favorable to the City than those available from SDG&E.
Resolution 2004-118
Page 2
Presented by
Approved as to form by
CÀ~
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 20th day of April, 2004, by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
Davis, McCann, Rindone, Salas and Padilla
None
None
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ATTEST:
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Susan Bigelow, CMC, Cit lerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2004-118 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 20th day of April, 2004.
Executed this 20th day of April, 2004.
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Susan Bigelow, CMC, City lerk