HomeMy WebLinkAboutResolution No. 2001-27 -... . � , .
RESOLUTION NO. R2001-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS, APPROVING THE ARTICLES OF
INCORPORATION AND BYLAWS OF CITIES AGGREGATION
POWER PROJECT, INC., A POLITICAL SUBDIVISION
CORPORATION; ACCEPTING MEMBERSHIP IN SAID
CORPORATION; APPOINTING A REPRESENTATIVE TO SERVE ON
BEHALF OF THE CITY OF FRIENDSWOOD; APPROVING PAYMENT
OF AN INITIAL MEMBERSHIP FEE; AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, Chapter 303 of the Texas Local Government Code, entitled Energy
Aggregation Measures for Local Governments, allows political subdivisions to form a political
subdivision corporation to act as an agent to negotiate the purchase of electricity, or to likewise
aid or act on behalf of the political subdivisions for which the corporation is created, with respect
to their own electricity use for their respective public facilities; and
WHEREAS, Cities Aggregation Power Project, Inc. is a political subdivision corporation
organized under said Chapter; and
WHEREAS, the negotiation for electricity by the corporation should result in lower
electricity costs to the City of Friendswood; and
WHEREAS, the TXU Cities Steering Committee has participated in numerous rate
proceedings and rule-makings over the course of the last decade and having investigated the
impacts of electric deregulation, recommends participation of cities in aggregation projects and
creation of a political subdivision corporation to maximize opportunities for cost savings; and
WHEREAS, the TXU Cities Steering Committee has facilitated the creation of Cities
Aggregation Power Project, Inc.; and
WHEREAS, the City of Friendswood seeks to become a Member of Cities Aggregation
Power Project, Inc.; and
WHEREAS, the By-Laws of Cities Aggregation Power Project, Inc. require an initial
membership fee of%2 of 1% of the total annual electric bill of 2000. Such fee shall not exceed
$14,000.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FRIENDSWOOD,TEXAS:
Section l. The recitals contained in the preamble of this Resolution are determined to be
true and correct and are hereby adopted as a part of this Resolution.
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Section 2. The Articles of Incorporation and Bylaws of Cities Aggregation Power
Project, Inc., a political subdivision corporation, attached hereto and incorporated herein for all
purposes as Exhibits A and B respectively, are hereby approved.
Section 3. The City of Friendswood accepts Membership in Cities Aggregation Power
Proj ect, Inc.
Section 4. The City of Friendswood approves payment of an initial fee assessment
equivalent to %2 of 1% of the total annual electric bill the City of Friendswood in the year 2000.
Such fee shall not exceed $14,000.
Section 5. The City of Friendswood hereby appoints the City Manager, to serve as the
City of Friendswood's representative to the corporation and to act on the City of Friendswood's
behalf.
Section 6. All Resolutions and parts thereof in conflict herewith are hereby expressly
repealed insofar as they conflict herewith.
Section 7. This Resolution shall take effect immediately from and after its adoption and
it is accordingly so resolved.
PASSED,APPROVED,AND RESOLVED this 21st day of May 2001.
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Harold L. Whitaker
Mayor
ATTEST:
, S
.
Deloris McKenzie, T C
City Secretary
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