Resolution 12735CITY OF ALAMEDA RESOLUTION NO. 12735
AUTHORIZING THE CITY MANAGER TO EXECUTE A NATURAL GAS
SALES AND AGGREGATION AGREEMENT WITH ABAG AND APPOINTING
A CITY REPRESENTATIVE TO ABAG'S POWER PURCHASING POOL
COMMITTEE
WHEREAS, the City of ALameda is currently purchasing natural
gas and related transportation and distribution services from an
entity providing natural gas (Utility) to City facilities 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
regulations 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 City of Alameda 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 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 Alameda hereby authorizes the participation of the City of
Alameda in the ABAG Power Purchasing Pool to undertake a bulk
purchasing program for natural gas on behalf of the City and other
ABAG members or cooperating members.
BE IT FURTHER RESOLVED that the City Manager, is authorized to
enter into and deliver (1) the Natural Gas Sales and Aggregation
Agreement with ABAG, in substantially the form on file with the
City Clerk appointing ABAG as the core transport agent for the City
of ALameda in procuring the purchase and transportation of natural
gas and related services and (2) the Utility's Customer
Authorization for Core Gas Transportation Services.
BE IT FURTHER RESOLVED that the City of Alameda 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.
BE IT FURTHER RESOLVED that the Administrative Management
Analyst is appointed as City of Alameda's representative on ABAG's
Power Purchasing Pool Committee to oversee the operation of Power
Purchasing Pool Program.
BE IT FURTHER RESOLVED that this Resolution shall not be
effective until the effective date of the adoption of required
implementing ordinance.
1, the undersigned, hereby certify that the foregoing
Resolution was duly and regularly adopted and passed by the Council
of the City of Alameda in regular meeting assembled on the 6th
day of February , 1996, by the following vote to wit:
AYES: Councilmembers Arnerich, DeWitt, Lucas,
Mannix and President Appezzato - 5.
NOES: None.
ABSENT: None.
ABSENTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
Official seal of said City this 7th day of February , 1996.
Dia B. Felsch, City Clerk
City of Alameda