Loading...
HomeMy WebLinkAbout2006-05-17 STAFF REPORTS 2H <F pLM Spy �2 u N * C,q</FOR��P CITY COUNCIL STAFF REPORT I DATE: May 17, 2006 CONSENT AGENDA SUBJECT: ADOPT RESOLUTION DISSOLVING CALIFORNIA UTILITY BUYERS JOINT POWER AUTHORITY FROM: David H. Ready, City Manager BY: Procurement and Contracting Division SUMMARY On May 17, 2000 the City Council of the City of Palm Springs adopted Resolution No. 20220 approving membership in the California Utility Buyers (CUB) Joint Powers ,Authority to explore methods of pooling resources with other public agencies to manage and control energy costs. The Board of CUB has decided to dissolve the Authority and has requested that each member act to dissolve the joint powers authority. (RECOMMENDATION: 1) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DESIRES THE DISSOLUTION OF THE CALIFORNIA UTILITY BUYERS JOINT POWERS AUTHORITY, OF WHICH IT IS A MEMBER, AND VOTES FOR SUCH DISSOLUTION;" and 2) Authorize the City Manager to sign all necessary documents. A4424. STAFF ANALYSIS: The California Utility Buyers (CUB) Joint Powers Authority, which consists of the City of Stockton, the County of Ventura and the City of Palm Springs, was founded in 1999 to leverage the combined buying power of its member agencies to purchase electricity and natural gas. A copy of the JPA Agreement signed by the City when it joined the JPA in 2001 is attached. The City's CUB representative was Harold Good, the former Director of Procurement & Contracting. The idea behind City participation was to empower City staff to explore opportunities to participate in future electricity purchase programs. CUB also operated a natural gas purchase program, but this program never grew beyond a few participants. Due to the Item No. n . H . City Council Staff Report May 17, 2006 -- Page 2 Dissolve California Utility Buyers JPA suspension of electricity customer choice un California, CUB does not have an electricity program. The agreement signed by the City did not require that the City participate in any CUB programs and, to date, the City has not participated in any utility purchase programs offered by CUB. The CUB Board of Directors has recently decided to abandon the Authority, and has asked each member to adopt the attached Resolution dissolving the JPA. FISCAL IMPACT: IFinance Director Review: None. YO .rr L. But a ssistant City Manager David H. Ready, City a� r Attachments: Resolution No 20220 JPA Agreement Resolution RLS©LlMON NO, 2012e A RESCLUTION OF THE ciTy CC7vNci1. OF THECITY OF PALM SPRINGS APt'FOVJNG t'utEtMERSHfP IN THE C'A!;FOTWA LiTtt.ITt' BtJIYERS Ja1NT 'P©WERS AUTHORITY AND AUTHOR2ING EXFCUTION OF. JOINT POWERS AGRFFl•,lENT. WHEREAS;the 674 of Rulm Springs has fhe authorrty€o and does acquire utllityservlces !such as eiatunal gas, eiair€ric power, water,and telecommunications)fords facllities;.and VVH-f EAS, t'he City of Pain `springs ms;ies to baiter cx)ntrol the casts of,utilities<it its tm"iNies., thriwugh cooperative aoquisit"ori and management programs wifh other publi agencies ir ai d "JHFRFAS the'C liformie Utility Buyers JPA has been eatablishexi as a California joint po;wers'authority.tu ope;cafe such cooperative programs; and 'rVHERL,A5, TItiL* t, Ci gJI—al. 7. Chapter 5,,Article 1 (Section 6500 et ,aeq) Of the tfavernment Co,dc authorizes Joint exerclsa by;tiro ortnore public agencies of power G ntrion to then", NOV0 s 1EP,EFORE, 1,4L iT AF,SOLVED ?fto Ciry Council of the. CCtty of Palm Springs, Cal'ifornla, `oeN hereby resolve is folloyvs: Section 1- The Grly C awct hereby atp roves Agreement entitled 'Jotnt Rowers Agreement,Creating the California UVIi1y Buyers JPA", oh file fn the olficzv of the City Clerk, Section 2, The N12tfcr or hiiw designee is hereby authorized to affix his signature to tfus res.cltution sign tityinq Its;adoption by the City Cowicf l of the City of Patm Springs, and the,CityClerk, or her duly appointed deputy,is directed :o attest thereto. Secliaa 3, 'I"he N,ayofor his designer, al"theor stac essor{s) in office, are- authorized and hereby directed to execute and delver on behalf of tho�Citye of Palm Springs any d"OCUrrents oriastruments deemed necassary or,appropriafe to -elvidence rre(nbvrsliip in the CUP JPA, h cl[tdi ag.(f e'Neiitt Powors; Ag;re> aient-o0'the CUB JPA, or to participate in particu;ar pro;trzims o€the CUB JPA ras,so .h offircr;s) deem appropriate. (SIGNATURES ON FOLLOWING PAGE), RE—$OLII' ION NO, 2}22C3 NOVEMBER i', 2001 Page 2 ADOPTrD this -kh day of Kvycmber 20DI AYES: Meoiti4Cs 3lodyev, Joa0s. odea, -T�vller—Spurglu uad Mayor Klaiudieurt. NOFS. None AB ENP None ATTEST: CITY OF PALIA SPRINGS, CALIFORNIA, ,a MuntriPal aorparatfc,n .l'i.tric.ia.li. Sar�tdues /�/ David H. Ready City Clerk. City Manager REVtk'V&D&APPROVBC)-A$ TO FORM _-. 10, "l'ra,nlTC6't"THAT MZ+Ltii��, t Ss iC 1 r N3N �.Y.� F`itiET.�t h xuC 1 - �aa A ,S,f kC'1'T2 T¢ MIT OF I r _.11 "��'tF„r rN UATTM 'b`t7:1.'F r�Ei"C7'"r'ti,11"<'GL,Ef�S� xi mri OF CUB'PA!S s"FRAIT t0 22:U:' Calif Utilities Buyers JPA Purchase -of Natural Gas/Electri 14424 C A L I F O R N I A A20220, T —7-01 xzozzo, 11-�-01 UTILITY BUYERS FIRST AMENDED AND RESTATED JOINT POWERS AGREEMENT CREATING THE CALIFORNIA UTILITY BUYERS JPA This First Amended and Restated Joint Powers Agreement of the California Utility Buyers JPA(this"Agreement")is entered into among the public entities identified on the signature page of this Agreement and the additional public agencies who subsequently sign this Agreement (collectively,"Members"). RECITALS Each Member has the authority to and does purchase natural gas and electricity for the operation of its respective facilities. Members believe that savings can be achieved if they arrange for the purchase of natural gas and electricity as a group directly from natural gas or electric power suppliers. Members agree that acquisition of natural gas and electricity in this manner requires expertise of a special nature not available within their respective organizations, Members wish to jointly exercise their powers to provide for the mutual acquisition of natural gas and electricity utilizing the services of a management consultant to administer the acquisition program,and in connection therewith,also advise the Authority on methods by which its Members may manage their costs related to natural gas,electricity and other energy sources. The Joint Powers Agreement Creating the California Utility Buyers JPA,made as of April 29, 1999(the"1999 JPA Agreement"),established the California Utility Buyers JPA("CUB"), effective April 29, 1999(the"Effective Date"). On August 28,2001,the Board of Directors of CUB recommended that this Agreement (which,with respect to Members who duly authorize and execute this Agreement,will supercede and restate the 1999 JPA Agreement)should be submitted to the Members and to prospective Members for their consideration and approval. NOW,THEREFORE,in consideration of the mutual promises set out,the patties agree as follows: AGREEMENT ARTICLE I POWERS AND PURPOSES 1. Authority Created. The California Utility Buyers JPA("CUB")was formed by the 1999 JPA Agreement pursuant to the provisions of Article 1,Chapter 5,Division 7, Title 1(coxmnencing with section 6500)of the Governmeut Code of the State of California. CUB has 6X UB1Mem0 mhipWPA Rr=kCaB A Pp AgW=015eP� ..Page I of 1➢°J�i;(.iu'C ''at•�iy��u^Jdl,=d`;I G been and shall continue to be a public entity separate from its Members and its debts,liabilities and obligations shall not be the debts,liabilities and obligations of its Members.With respect to Members who duly authorizc and execute this Agreement,this Agreement shall in all respects supercede and restate the 1999 JPA Agreement.Authorization and execution of this Agreement shall not invalidate actions duly taken by CUB or the Members pursuant to the 1999 JPA Agreement. 2. Purpose of the Agreement:Common Powers to be Exercised. Each of the Members individually has the authority to contract For the purchase of natural gas,electricity and for advice on energy consumption. The purpose of this agreement is to jointly exercise the foregoing powers in the manner set forth herein. 3. Effective Date of Formation.CUB was formed effective as of the Effective Date. This Agreement shall be effective with respect to a Member as of the date that the Member executes this Agreement. A. Powers. Pursuant to and to the extent required by Government Code Section 6509, CUB shall be restricted in the exercise of its powers in the same mauuer as is the City of Stockton, California.CUB shall have the power: (a) To exercise the common powers of its Members to purchase natural gas and electricity and to seek advice on means of economizing on the use of natural gas,electricity and other energy sources. (b) To make and enter into contracts for the purchase of natural gas and electricity, for the sale of natural gas and electricity by CUB to its Members,for balancing the difference between the supply of natural gas or electricity ordered and the amount actually consumed,and for advice on means of economizing the use of natural gas,electricity and other energy sources. (c) To incur debts,liabilities and obligations in connection with the purchase of natural gas and electricity and advice on the means of economizing on the use of natural gas, electricity and other energy sources. (d) To sue and be sued in its own name. (e) To contract for the services of a management consultant as more specifically set forth in Article Ell. (1) To contract with Members to provide necessary administrative services to CUB as appropriate. (g)To adopt rules,regulations,policies,bylaws and procedures governing the operation of CUB. (h)To recruit additional Members to CUB to increase the purchasing power of CUB. CUB A Powers Agmt v2007Sep26.doc 2 ' v#4"✓ ARTICLE II ORGANIZATION 1. Membership. Members of CUB shall be the original parties to this Agreement and such other cities,counties and public districts as mayjoin CUB after execution of this Agreement, including any counterpart copy of this Agreement. 2. Officers. (a)CUB shall be governed by a Board of Directors("die Board")consisting of five Members which shall be selected in the manner identified in the bylaws and shall exercise its authority in accordance with this Agreement and CUB's bylaws which are attached hereto as Exhibit A and incorporated herein by reference.The tern of office shall be four years,except that for the initial Board one Director shall serve for two years,two for three years and two for four years. (b)CUB may appoint an Executive Director by contracting with one of its Member agencies. (c)CUB shall appoint a Treasurer by contracting for such services with one of its Members or a private certified public accountant. (d)CUB shall appoint an Auditor by contracting for such services with one of its Members.In dre event CUB appoints a Treasurer from one of its Members,the Auditor must come from the same Member.The Treasurer and Auditor shall possess the powers of and shall perform the treasurer and auditor fimctions for CUB required by Government Code sections 6505,6505.5 and 6505.6 and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of CUB. The Treasurer and Auditor shall be required to file an official bond with due Board in an amount which shall be established by the Board.The premimns on any such bonds shall be appropriate expenses of CUB. Pursuant to Government Code section 6505 the Auditor shall contract with a certified public accountant to make an annual audit of the accounts and records of CUB. The costs of the audits shall be borne by CUB. 3. Principal Office. The principal office of CUB shall be 1430 Willow Pass Rd.,Suite 240,Concord,California 94520 or as may be otherwise designated by the Board from time to time. 4. Fiscal year. The fiscal year of CUB will be from July I to June 30. 5. Member Contributions. The costs of operating CUB,purchasing natural gas and electricity and payment of consultant shall be recovered from the Members as follows: (a) Operating and Consultant Costs. Each Member that executes an energy purchase agreement with CUB shall pay its share of operating and consultant costs based on the cost of natural gas and electricity units ordered by the Member compared to the cost of the total natural gas and electricity units ordered by all Members. Payment shall be made monthly in arrears. CUB Jt Powaas Agmt v2001 Sep20.doc 3 i (b) Natural Gas Costs. Each Member that executes an energy purchase agreement with CUB shall pay for the number of natural gas and electricity units it orders. Payment shall be made concurrently with placement of the order. (c) Membership Pee.In lieu of recovering all or part of its operating or consultant costs as prescribed in subparagraph(a),the Board may impose a membership fee payable at such time or times as the Board deems appropriate,which may only be collected from those Members whose legislative body consents to such fee.. (d)No Member shall be liable for any indebtedness of CUB except with the prior written consent of the Member's legislative body.All persons dealing with or having a claim against CUB is hereby notified that no Member is liable for the debts of CUB,except to the extent set forth in a written consent.Execution of a written energy purchase agreement between a Member and CUB shall constitute a Member's consent to pay costs as set forth therein. 6. Withdrawal. Any Member may withdraw from CUB upon six months prior written notice. Upon withdrawal a Member will not be entitled to return of any funds previously paid to CUB. 7. Termination of the Agreement. This Agreement may be terminated upon resolutions adopted by a majority of its Members. Upon termination,all surplus money and property of CUB shall be distributed to each Member in proportion to the funds provided CUB by the Member over the previous twelve months. ARTICLIE III MANAGEMENT CONTRACT 1. The acquisition of natural gas and electricity and all administrative functions relating thereto,except those of Treasurer and Auditor,shall be performed by a management consultant selected by CUB's Board through such procedure,including sole source,as its deems appropriate for special services under Government Code section 53060. At est: City f a Sprins City Clerk Mayor ,".PPR17VED AS TO FORM -City Attorney ��-r "/ " � 19 CUR Jl Powers Agmt v2GD15ep20.doc 4 11q /G-.¢ IS-- �CALIFORNIA UTILITY BUYERS BYLAWS OF THE CALWORNIA UTILITY BUYERS JPA 1. Membership. Membership in the California Utility Buyers JPA("CUB")shall be evidenced by a resolution of the governing board of a member authorizing execution of the Agreement and the executed Agreement. 2. Meetings. The first and organizational meeting of the CUB shall be held in Sacramento,California. Thereafter the Board shall meet at the office of the Treasurer of CUB or at such other places as may be designated by the Board. The time and place of the regular meetings of the Board shall be determined by resolution adopted by the Board,and a copy of such resolution shall be furnished to each member.All Board meetings,including regular and special meetings,shall be noticed and held in accordance with the Ralph M.Brown Act, Government Code section 54590,et seq.. 3. Quorum Voting. A majority of the Board's Directors shall constitute a quorum for the purpose of the transaction of business relating to the CUB. Each Director shall be entitled to one vote. Unless otherwise provided herein,a vote of the majority of those Directors present and qualified to vote shall be sufficient for the adoption of any motion,resolution or order and to take any other action deemed appropriate to carry forward the objectives of the CUB. 4. Designation of Directors. On the Effective Date the members shall hold their first meeting at which time they shall select a nominating committee to select the CUB's Board of Directors. At the same meeting, and after the nominating committee is selected, each member may submit to the nominating committee as a candidate for the Board the name of one of their officers or employees, or the name of an officer or employee of another member, including a member of the nominating committee, as a candidate for the Board. The nominating committee shall then select five of the nominees as Directors of the Board, specify the term that each is to serve and submit the nominees to the members for approval. To the extent possible,the membership of the Board of Directors shall reflect geographic diversity consistent with securing the best available candidates. In the event a nominee is not approved,the nominating committee shall propose an alternate or alternates to the members for approval. After the first Board of Directors is elected,thereafter the Board will elect persons to fill vacancies or commence new terms. Vacancies will be filled for the unexpired term. 5. President,Vice President and Secretary. At the first meeting,and every two years thereafter,the Board shall appoint three of its Board members as the President,Vice President and Secretary. 6. Budget. Within 60 days after formation of the Board,the Board shall adopt a budget for the balance of the fiscal year. Thereafter,thirty days prior to the expiration of the GAG B BWsMerWop)JPA FormsMB Bylaws 990"9. o Page I of2 /L*4 /G • ! fiscal year the Board shall adopt a budget for the ensuing f sfal year. The Board may contract with a member for preparation of the budget. The budget shall include, but not be limited to, the general operating costs and natural gas and electricity acquisition costs to be incurred during the period covered by the budget,and the allocation of such costs among the members. The budget shall be adopted by at least a majority of all the directors of the Board. 7. Expenditures for the Approved Budget. All expenditures made within the designations and limitations of the approved budget shall be made on the authorization of the Treasurer,or in his or her absence the President of the Board,without further action of the Board. No expenditures in excess of those budgeted shall be made without the approval of a majority of all of the directors of the Board. 8. Amendment of Bylaws. These bylaws may be amended by the Board at a regular meeting at which a quorum is present. CUB Bylaws 99 04 09.dae 2 SGhI :7 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DESIRES THE DISSOLUTION OF THE CALIFORNIA UTILITY BUYERS JOINT POWERS AUTHORITY, OF WHICH IT IS A MEMBER, AND VOTES FOR SUCH DISSOLUTION; WHEREAS, the California Utility Buyers JPA ("CUB") is a California joint powers authority formed by a Joint Powers Agreement as of April 29, 1999 (the "1999 JPA Agreement"), pursuant to California Government Code section 6500 et seq., for the benefit of its member public agencies (the "Members") to jointly exercise their common power to purchase electricity and natural gas and to seek advice on energy consumption; and WHEREAS, on August 28, 2001, the Board of Directors of CUB (the "CUB Board") recommended that Members consider and approve a First Amended and Restated Joint Powers Agreement (the "2001 JPA Agreement"), which was approved by the City of Stockton and the City of Palm Springs; and WHEREAS, the City of Palm Springs is a Member; and WHEREAS, the CUB Board has determined, in CUB Resolution Nos. 2006-01, 2006-02, and 2006-03, that the costs of operation of CUB do not justify CUB's continued existence, that CUB program operations should be wound down, its natural gas service contracts assigned to the School Project for Utility Rate Reduction (a joint powers authority of California public schools that has operated in conjunction with CUB), and that CUB should be dissolved; and WHEREAS, all authorizations required for dissolution of CUB have been taken, except a final vote for dissolution by a majority of the Members as specified in the 1999 JPA Agreement and in the 2001 JPA Agreement and a final distribution of surplus assets. NOW, THEREFORE, BE IT RESOLVED THAT, The City of Palm Springs desires the dissolution of CUB, of which it is a Member, and votes for such dissolution. The Board further directs its City Manager or his/her designee to forward a copy of this resolution to CUB. PASSED and ADOPTED by the City Council of the City of Palm Springs this _day of _ , 2006, by the following vote: AYES: NOES: ABSENT: A13STAIN: David Ready, City Manager ATTEST: James Thompson, City Clerk