2001-10-22 Regular Meeting and Public Hearings

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e e City Council Minutes 10-22-01 - Page 5 La Porte; but Resolution Number II says if the numbers are as they are estimated to be within 20 to 25 percent lower than what we are currently purchasing, then the City will move forward and enter into a contract. In talking with one of the H- GAC board members today, it's my understanding there may even be a greater percentage break for La Porte and other cities that participate. So, the Resolution that you are asked to consider will allow the City to go ahead and purchase when the time comes, the rates as they have been established through the bid process through H-GACj if and only if the numbers are lower than what I quoted tonight or are equal to what I quoted tonight. If you are inclined to do so, then you are also asked by this Resolution to appoint two officers from the City to sit down and to negotiate the final numbers with H-GAC. I would recommend that we move forward, and that those two people be myself and our Purchasing Agent. Susan Kelley has been working on this particular project almost since its inceptionj and she has done a tremendous job, by the way. I'm very proud of her efforts to date. We do recommend that Resolution Number II be approved and accepted by the City Council. We are ready to answer any questions we possibly can. Alton Porter's question waSj if after this is done, can we withdraw our commitment to fixed rate, if final pricing exceeds the initial proposed pricing. Is that the only opt out we have? If service is poor, do we have an opt out? Mr. Herrera responded that their is a supplemental agreement in the packet that does talk of a termination clause. In order to get in to it, first of all; the first clause is not service, but the price. If the price is not acceptable, then you can back out. The contract that we will probably negotiate will either be for one year or for two years. At this point and time, a firm of TXU has been recognized as the apparent low bidder, or the most responsible bidder. There is a term clause in the sample agreement that talks about (Termination of Agreement). We would probably have to go through breech of contract, and explain where the breech was at and why we are dissatisfied. There were various members discussing the contract agreement. City Attorney read: RESOLUTION 2001-14 - A RESOLUTION APPROVING AND AUTHROIZING EXECUTION OF A "SUPPLY AGREEMENT" WITH A RETAIL ELECTRIC PROVIDER, APPROVING INITIAL PROPOSAL PRICING, AND APPOINTING AUTHORIZED REPRESENT A TIVE(S). Motion was made by Councilperson Sutherland to approve Resolution 2001-14 as presented by Mr. Herrera. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Warren, Young, Clarke, and Malone. Nays: Porter Abstain: None