1 RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE,
CALIFORNIA, AUTHORIZING THE CITY MANAGER OR GENERAL MANAGER OR
THEIR DESIGNEES TO ENTER INTO CONTRACTS FOR THE PURCHASE OR SALE
OF ENERGY COMMODITIES AND SERVICES (NATURAL GAS OR ELECTRIC
ENERGY, INCLUDING RENEWABLE AND CARBON ATTRIBUTES AND THE
TRANSFER OF INITIATING AND CLEARING BROKER SERVICES) FOR A TERM
NOT TO EXCEED FIVE YEARS IN DURATION AND DISPENSING WITH
COMPETITIVE BIDDING
WHEREAS, on June 13, 2023, the City Council authorized the City Manager or his designee, or the Glendale Water & Power (GWP) General Manager or his designee, to arrange for the purchase, sale, storage and transmission of electric energy and fuels for electric generation, including renewable and carbon attributes, for terms not to exceed five years in duration, including the use of financial instruments to stabilize prices; and
WHEREAS, said authorization expires on June 30, 2024 and requires renewal annually; and
WHEREAS, the City and GWP have successfully implemented last year’s authorization through the Energy Risk Management Policy and Energy Trading Authority Policy to minimize fuel and power purchase costs.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA:
Section 1. Pursuant to the City Charter, Article VI, Section 9, the Council does hereby authorize the City Manager or his designee, or the General Manager or his designee, to arrange by letter or contractual agreement, (i) the purchase, sale and transmission of electrical energy and capacity, ancillary services, electrical transmission and transmission capacity, and renewable and carbon attributes, on either a bundles or unbundled basis; (ii) trading in carbon markets, including the purchase and sale of Low Carbon Fuel Standard Credits; (iii) the purchase, sale, storage, scheduling and transportation of fuels for electrical generation and the transfer of initiating and clearing brokers services, between the City of Glendale and other parties for terms not to exceed fie years in duration. Such contractual agreements may include financial instruments for the purpose of stabilizing prices. This authorization shall be in effect through June 30, 2025, and the General Manager of GWP shall bring this authorization back to the Council for reconsideration on an annual basis.
Section 2. The Council does hereby clarify that the term “financial instruments” in Section 1 above is intended and acknowledged to mean future contracts, options, and swaps under International Swaps and Derivatives Association (“ISDA”) Master Agreements or through a brokerage account, and related documents which will be used to hedge against price fluctuations in both the fuels for electric generation and electric energy markets.
2 Section 3. The Council hereby finds that pursuant to Glendale City Charter Article VI, Section 9, that said transactions must be completed in a rapidly changing energy market and that it is not practical nor in the City’s best interest, to subject these transactions to the City of Glendale’s bidding requirements, and therefore the Council hereby dispenses with competitive bidding for these transactions.
Adopted by the Council of the City of Glendale on this ___ day of _________, 2024.
________________________________
Mayor
ATTEST:
_____________________________________
City Clerk
STATE OF CALIFORNIA ) SS.
COUNTY OF LOS ANGELES )
I, Suzie Abajian PhD, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. _______________ was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the ______ day of ______________________, 2024, and that the same was adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
________________________
City Clerk