HomeMy WebLinkAboutResolution 97-252 09/15/1997 I Resolution No. s7-252 N.C.S.
2 of the City of Petaluma, California
3 RESOLUTION AUTHORIZING THE CITY MANAGER TO ENROLL THE CITY OF
4 PETALUMA INTHE ASSOCIATION OF BAY AREA GOVERNMENT'S POOLED
5 NATURAL GAS PURCHASING PROGRAM
6
7 WHEREAS, the City of Petaluma is currently purchasing natural gas and related
8 transportation and distribution services from PG&E under the jurisdiction of the California
9 Public Utilities Commission (CPUC); and
10
11 WHEREAS, deregulation of the natural gas industry in 1986 and CPUC Decisions No.'s
12 91-02-040, 94-04-027, and 95-07-048 end regulation promulgated thereunder, permit Utility
13 customers, including local governments, to purchase natural gas and specified related support
14 services from third parties through a "core transport agent"; and
15
16 WHEREAS, bulk purchasing of natural gas has proven itself to be a legal and cost-
17 effective means to achieve reductions in energy costs; and
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19 WHEREAS, the City of Petaluma is a member/cooperating member of the Association of
20 Bay Area Governments (ABAG); and
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22 WHEREAS, ABAG proposes to I) form a Power Purchasing Pool Program to aggregate
23 natural gas needs of interested ABAG members and cooperating members; and 2) act as a core
24 transport agent on behalf of such members; and 3) deliver or cause to be delivered natural gas
25 and related services (including invoicing and gas management) to such members; and 4) form a
26 Power Purchasing Pool Committee comprised of representatives from each participating member
27 or cooperating member and grant it the power to oversee. the Program; and
28
29 WHEREAS, ABAG may issue short-term debt in order to finance security deposit
30 requirements and/or cash flow deficits incurred by ABAG in operating the Power Purchasing
31 Pool Program which debt may be secured by the assignment, encumbrance or hypothecation of
32 the Natural Gas Sales and Aggregation Agreement between ABAG and the City of Petaluma.
Resolution No. 97-252 N.c.s. Page of 2
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2 NOW, THEREFORE, BE IT RESOLVED Chat the City Council of the City of Petaluma
3 hereby authorizes the participation of the City of Petaluma in the ABAG Power Purchasing Pool
4 to undertake a bulk purchasing program for natural gas on behalf of the City of Petaluma and
5 other ABAG members or cooperating. members.
6
7 BE IT FURTHER RESOLVED that the City Manager or his/her designee, with the
' 8 concurrence of the City Attorney, is authorized to enter into and deliver I) the Natural Gas Sales
9 and Aggregation Agreement with ABAG, in substantially the form set forth in the aCCatihed
10 Exhibit A appointing ABAG as the core transport agent for the City of Petaluma in procuring the
1 I purchase and transportation bf natural gas and related services and 2) the Utility's Customer
12 Authorization for Core Gas Transportation Services (attached as Exhibit B).
13
14 BE IT FURTHER RESOLVED that the City of Petaluma consents to the assignment,
15 encumbrance or hypothecation of the Natural Gas Sales and Aggregation Agreement with ABAG
16 for the sole purpose of securing short-term financing of the security deposit requirement and/or
1 ~ cash flow deficits incurred by ABAG in implementing the Power Purchasing Pool Program.
18
19 BE IT FURTHER RESOLVED that the City Manager or his/her designee is appointed
20 the City of Petaluma's representative on ABAG's Power Purchasing Pool Committee to oversee
21 the operation of Power Purchasing Pool Program.
22
23 ~ese9nkr
Under the power and authority conferred upon thin Council by the Charter of said City.
REFERENCE: Lhereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the Cit of Petaluma at a Re ar f°r°'
y ( gul ) QtN3~&C(lfigbl meeting ~J
on the ..:..15.th.......... day of .........SepS.emheC 19.9.7.... by the
following vote:
City Attorney
AYES: Read, Keller. Stompe, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss
NOES: None
/I/ .
ABSENT: None ///J// ~
A'I'1'EST: ~./V6, r'~ZL~ct4~~ f~ l ~/f~/p~S~
City Clerk Ma or /
Council Fifa.._
cn w-~s a<~z. N,...97.,25.2.......... Ncs Page 2 of 2