RES 2012-18TOWN OF TROPHY CLUB, TEXAS
RESOLUTION NO. 2012-18
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS,
AUTHORIZING THE TEXAS COALITION FOR AFFORDABLE POWER
(TCAP) TO SEEK BIDS TO COVER THE ELECTRIC POWER NEEDS
OF THE TOWN FOR THE PERIOD JANUARY 1, 2014 -DECEMBER 31,
2017 AND TO NEGOTIATE AN EXTENSION OF THE TOWN'S POWER
SUPPLY AND RETAIL ELECTRIC PROVIDER CONTRACTS FOR THE
SAME PERIOD; AUTHORIZING THE TOWN MANAGER TO SIGN A
BLEND AND EXTEND OR FIXED PRICE CONTRACT WITH TCAP FOR
THE TOWN'S ELECTRICITY NEEDS FOR THE PERIOD EXTENDING
UP TO DECEMBER 31, 2017; COMMITTING TO BUDGET FOR
ENERGY PURCHASES AND TO HONOR THE TOWN'S
COMMITMENTS TO PURCHASE POWER THROUGH TCAP FOR ITS
ELECTRICAL NEEDS THROUGH DECEMBER 31, 2017, IF TOWN
AGREES TO ACCEPT THE CONTRACT OFFER.
WHEREAS, the Town of Trophy Club, Texas (Town) is a member of Texas
Coalition for Affordable Power (TCAP), a nonprofit political subdivision corporation
dedicated to securing electric power for its 162 political subdivision members in the
competitive retail market; and
WHEREAS, the Town's current contract for power with Next Era as supplier and
Direct Energy Business Services (DEBS) as Retail Electric Provider (REP) arranged
through TCAP expires December 31,2013; and
WHEREAS, the TCAP Board of Directors has authorized its consultants to seek
market-based bids for 14 members that did not agree to the 2011 blend and extend
opportunity to cover the period January 1, 2014 through December 31,2017; and
WHEREAS, TCAP and its members must be able to commit contractually to
price offers within a 24-hour period in order to lock-in favorable prices; and
WHEREAS, experiences in contracting for TCAP load since 2002 have
demonstrated that providers demand immediate response to an offer and may penalize
delay with higher prices; and
WHEREAS, it is necessary for the Town to designate a specific individual who
can sign a power purchase agreement within 24 hours of receiving a proposal that
economically benefits the Town; and
WHEREAS, suppliers demand assurance that TCAP will pay for all contracted
load; and
WHEREAS, the Town must assure TCAP that it will budget for energy
purchases and honor its commitments to purchase power for its electrical needs
through TCAP for the period beginning January 1, 2014 and extending through
December 31,2017; therefore,
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Section 1. That the TCAP Board and its consultants and advisors are agents
authorized to solicit proposals and to negotiate for the Town's electricity needs as a
member of TCAP and to offer the Town an extension to the current supply agreement
through December 31,2017.
Section 2. That Town Manager Mike Slye is the designated Town official with
authority to execute a blend and extend (that reduces current contract price terms) or
fixed price contract for power supply and sign a Commercial Electricity Supply
Agreement (CESA) for the Town's electricity needs and related, necessary services
beginning August or September 2012 (if blend and extend option is selected) or January
1, 2014 (if blend and extend is rejected) and extending up to December 31, 2017, as a
member of TCAP and the Town commits its load for the same period, provided that the
energy price to be paid per kWh results in savings over the current contract that expires
December 31,2013 and otherwise is satisfactory to the designated individual.
Section 3. That the Town will budget and approve funds necessary to pay
electricity costs proportionate to the Town's load under the supply agreement arranged
by TCAP, if a power supply agreement is signed by the Town's designated individual for
the designated contract term.
Section 4. That a copy of this resolution shall be sent to Randy Moravec,
Executive Director, Texas Coalition for Affordable Power, 1323 Dunbarton Drive,
Richardson, Texas 75081 and Geoffrey M. Gay, legal counsel to TCAP, 816 Congress
Avenue, Suite 1900, Austin, Texas 78701.
PAS~ED and APPROVED on this 16 th day of July, 2012, by a vote of ---" __
ayes and 0 nays at a regular meeting of the Town Council of the Town of Trophy
Club, Texas.
(tonnie White, Mayor
Town of Trophy Club, Texas
[SEAL]
RES 2012-18 Page 2 of 2