R2012-194 AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE LOWEST RESPONSIBLE BIDDER FOR THE SUPPLY OF ELECTRICITY

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RESOLUTION NO. R2012-194 RESOLUTION AUTHORIZING EXECUTION OF A SERVICE AGREEMENT WITH THE LOWEST RESPONSIBLE BIDDER FOR THE SUPPLY OF ELECTRICITY FOR RESIDENTIAL AND SMALL COMMERCIAL RETAIL CUSTOMERS WHO DO NOT OPT OUT OF SUCH A PROGRAM AND A TRI-PARTY FEE AGREEMENT WITH THE LOWEST RESPONSIBLE BIDDER AND THE CITY'S AUTHORIZED MUNICIPAL AGGREGATION CONSULTANT (Municipal electric aggregation) WHEREAS, Section 1-92 of the Illinois Power Agency Act, 20 ILCS 3855/1- 92, permits a municipality, if authorized by referendum, to adopt an ordinance by which it may operate a program to solicit bids and enter into service agreements for the sale and purchase of electricity and related services and equipment to residential and small commercial customers who do not opt- out of such a program; and, WHEREAS,the City of Decatur("City"), in a referendum held on November 6,2012,submitted the public question of whether it should operate the program as an opt-out program;and, WHEREAS,the referendum passed by a majority vote of the qualified electors voting on the question; and, WHEREAS,the City Council finds that the best interests of the City are served by entering into an agreement with the lowest responsible bidder, pursuant to 20 ILCS 3855/1-92, to aggregate the residential and small commercial retail electric loads located within the City and to arrange for competitive electric supply to these retail electrical accounts; and, WHEREAS, because electricity is a commodity for which supply bids typically are made each morning and expire the same day at the close of business,the City must act promptly to accept any such desired bid in order to contractually guarantee a per kilowatt hour electric rate for its residential and small commercial customers; and, NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Decatur,Macon County,Illinois,as follows: Section 1. The City Manager of the City of Decatur, Illinois or his Designee, be and the same is hereby authorized to execute and deliver and the City Clerk of the City of Decatur, Illinois, be and the same is hereby authorized to attest to said execution of a service agreement that is in substantially the same form as one of the agreements attached hereto, the lowest responsible bidder for the supply of electricity for residential and small commercial retail customers who do not opt out of such a program, said execution and attestation to take place within the applicable time constraints required by the bidder; provided, however,that the energy price to be paid per kilowatt hour pursuant to the agreement is less than the default rate currently in effect, resulting in savings for the City's residential and small commercial retail customers.