HomeMy WebLinkAboutResolution - 2014-R0258 - Memo Of Understanding - WTMPA - 07/24/2014RESOLUTION
BE IT RESOLVE® BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for
and on behalf of the City of Lubbock, a Memorandum of Understanding, by and between the City
of Lubbock, Electric Utility Board (EUB) and the 'West Texas Municipal flower Agency
(WTMPA), and related documents. Said Memorandum of Understanding is attached hereto and
incorporated in this resolution as it` I`ully set forth herein and shall be included in the minutes of
the City Council.
Passed by the City Council on July 24, 2014
G�C. ROBER`I"SON, MAYOR
ATTEST:
Rebcc a Garza, City Secretary
APPROV -I3 AS TO CONTENT:
i9zes W./ oomis, City Manager
APPROVED AS 1*0 FORM:
4�9�
Chad Weaver, City Attorney
vry:ccdocs/ ES.M0U-WTMPA
July 15, 2014
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("MOU") is entered into this day of July
2014 (the "Effective Date") among the City of Lubbock, Texas ("Lubbock"), the Electric
Utility Board of the City of Lubbock, Texas (the "EUB"), and the West Texas Municipal
Power Agency ("WTMPA"), individually, each entity may be referred to herein as "Party"
and, collectively, as "Parties."
RECITALS
A. Lubbock is a Home Rule city owning a bundled electric generation, transmission and
distribution utility system providing electric energy to its citizens.
B. Pursuant to the City of Lubbock Charter, the EUB manages and oversees the electric
utility system for the majority of the City of Lubbock ("LP&L"), and LP&L performs
certain engineering, operational and administrative functions for WTMPA.
C. WTMPA is a municipal power agency which provides purchased wholesale electric
power to its Member Cities, which includes Lubbock and the Cities of Brownfield,
Floydada and Tulia.
D. The purchase power agreement under the terms of which WTMPA causes power to be
delivered to its Member Cities expires June 30, 2019. There is a public necessity to
acquire both replacement power and additional power prior to June 30, 2019, to meet
the requirements of WTMPA's Member Cities.
E. it is the intent of Lubbock, EUB and WTMPA that the City Members of WTMPA
continue as members of the WTMPA beyond June 30, 2019, and that they cooperate
and assist each other to acquire reliable power to meet their respective requirements
beyond June 30, 2019.
AGREEMENT
The Parties, for the mutual benefit of each, agree as follows:
1. The Cities of Brownfield, Floydada, Lubbock and Tulia will continue to remain
members of WTMPA beyond June 30, 2019.
2. WTMPA will provide support for the creation of a Request for Proposal for 2019
generation resources ("RFA") and for the evaluation of bids resulting from such RFP.
The RFP will include forecasted energy and capacity needs for all WTMPA members,
not exclusively LP&L, with the expectation that the RFP will provide the most
economical and reliable future power supply for all Member Cities.
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3. Requests for proposals for future power supply will be noticed and/or distributed in
July, 2014. Proposals which are received will be evaluated in the fall of 2014. A
decision as to which proposal, if any, to accept will be made on or before December
31, 2014. The criteria for acceptance of a proposal will be the proposal which would
probably provide the most reliable power at the least cost.
4. Lubbock, EUB and WTMPA will execute binding, definitive agreements to
implement any proposal unanimously accepted by the Parties and the Parties will
provide the financial support associated therewith as provided in definitive
agreements.
5. WTMPA will continue to contract exclusively with the EUB for any engineering,
operational or administrative support by LP&L for the delivery of power by WTMPA
to its members subsequent to June 30, 2019.
6. This MOU is a good faith expression of the intent of the Parties. No provision in this
MOU is binding upon any Party unless included in future binding, definitive
agreements duly executed by the Parties.
7. The Termination Date of this MOU will be the earlier of (1) a unanimous decision of
the Parties not to proceed jointly to acquire an adequate future power supply beyond
June 30, 2019, for all Parties, or (2) execution of binding definitive agreements
drafted to provide an adequate future power supply for all Parties. Notwithstanding
any provision to the contrary, this MOU shall expire on August 1, 2016.
8. This MOU will be governed by, and construed in accordance with, the laws of the
State of Texas without regard to conflicts of law provisions.
Executed in triplicate originals on the above recited Effective Date.
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CITY OF LUBBOCK
By:
Glen o son, yor
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ELECTRIC UTILITY BOARDOF THE
CITY OF LUBBOCK, TEXAS
03
Greg Taylor, Chairman
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WEST TEXAS MUNICIPAL POWER AGENCY
Lm
Gary Brown, President
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