Title
Dept/ Agency: Engineering
Action: ( ) Ratifying ( X ) Authorizing ( ) Amending
Type of Service: Cooperative Pricing Agreement
Purpose: To enter into an Energy Cooperative Purchasing Agreement with the Essex County Aggregate Energy Procurement Cooperative
Entity Name: Essex County Aggregate Energy
Entity Address: Essex County, 465 Dr. Martin Luther King, Jr. Boulevard, Newark, New Jersey 07102
Contract Amount: No funds will be required
Contract Period: Upon adoption of Resolution through January 31, 2017
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( x ) n/a
Additional Information:
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WHEREAS, the Essex County Aggregate Energy Procurement Cooperative (hereinafter referred to as "ECAEPC") was formed by the County of Essex, with the County acting as Lead Agency, in September 23, 2011, to effect substantial economies in the provision of goods and services, specifically to provide the opportunity for local government units located within the County to join together with the County of Essex to take advantage of the benefits of bulk purchasing for energy at no out-of-pocket expense to the participating local government units or the County, and to thereby minimize the cost of electric generation service (a.k.a. electricity supply) for participating local units, and the ECAEPC remains a cooperative pricing system duly-registered with the New Jersey Department of Community Affairs - Division of Local Government Service; and
WHEREAS, the City of Newark, has been a Participating Member of the ECAEPC and has enjoyed the electricity supply cost savings and/or avoidance resulting from prior bids conducted by the ECAEPC; and
WHEREAS, the ECAEPC will from time to time during the Effective Period (upon date of adoption through January, 31, 2017 hereinafter referred to as “Effective Period”) solicit bids from electric power suppliers for electric generation services on behalf of the ECAEPC in accordance with the "Local Public Contracts Law'', N.J.S.A. 40A:11-11(5), the Electric Discount and Energy Competition Act, N.J.S.A. 48:3-91.3 ("EDECA") and the regulations promulgated thereunder; and
WHEREAS, the City of Newark (hereinafter referred to as the Local Government Unit or “LGU”), as a Participating Member of the ECAEPC is eligible thereby to obtain electric generation services for its own use through one or more contracts to be awarded to electric power suppliers following said bids for electric generation services pursuant to the aggregation program; and
WHEREAS, due to significant volatility in the wholesale energy market there is a need for the Lead Agency to award contracts within a short period of time after the receipt of bids in order to lock-in favorable pricing; and
WHEREAS, the Lead Agency will from time to time issue one or more Requests for Bids for electric generation services on behalf of the Participating Members of the ECAEPC which are reasonably forecasted to provide estimated savings to the Participating Members based upon their previous electric usage and utility-provided Basic Generation Service tariff rates; and
WHEREAS, the Lead Agency will only award contracts for electric generation services to electric power suppliers that submit bids that yield at least five percent (5%) estimated savings to the Participating Member or are estimated to be reasonably lower based upon previous electric usage and the utility-provided Basic Generation Service tariff rates during the contract term; and
WHEREAS, the LGU intends to purchase all electricity supply needed for its own use (exclusive of on-site electric generation sources) during the Effective Period through any electric power supplier(s) awarded a contract by the Lead Agency, provided that said electric supplier or suppliers bids are at least five percent (5%) lower or are estimated to be reasonably lower than the utility-provided Basic Generation Service tariff rate and subject to Municipal Council approval. It is further understood that the contract to purchase electricity supply shall be subject to the provisions of Local Public Contracts Law N.J.S.A. 40A:11-1, et seq.; and
WHEREAS, the Lead Agency will notify the Department of Community Affairs' Division of Local Government Services by mail prior to the issuance a Request for Bids for electric generation services, with the, understanding that if the Division of Local Government Services does not respond within 10 business days, it will be deemed to have approved the issuance of the Request for Bids or the Request for Rebids; and
WHEREAS, City funds will not be required to support the effort of this aggregate energy procurement project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designees, the Director of Purchasing and the Director of the Department of Engineering, is authorized to enter into a joint agreement (Cooperative Pricing System #198ECAEPC ), pursuant to N.J.S.A. 40A:11-11(5), for purposes of establishing a cooperative pricing system in a form to be agreed upon the City of Newark Corporation Counsel and the Lead Agency for the purchase of all electricity supply needed for the City’s own use (exclusive of on-site electric generation sources).
2. This contract between the City of Newark and the County of Essex is authorized pursuant to the Local Public Contracts Laws (N.J.S.A. 40A: 11-11(5)) and the Administrative Code (N.J.A.C. 14:4-6.4) and shall be valid upon adoption of this resolution until January 31, 2017 (the Effective Period) at which time the City of Newark’s participation in the ECAEPC will be subject to renewal.
3. The ECAEPC is hereby authorized to continue to bid to obtain electric generation services through a rebid if energy market conditions do not initially lead to a successful bid, on additional dates to be determined by the Lead Agency.
4. City funds will not be required to support the effort of this aggregate energy procurement project.
5. This Resolution shall take effect immediately upon passage.
STATEMENT
Resolution authorizing the Mayor of the City of Newark and/or his designees, the Director of Purchasing and the Director of Engineering, to enter into a joint agreement (Cooperative Pricing System #198ECAEPC), pursuant to N.J.S.A. 40A:11-11(5), for purposes of establishing a cooperative pricing system in a form to be agreed upon the City of Newark Corporation Counsel and the Lead Agency for the purchase of all electricity supply needed for the City’s own use (exclusive of on-site electric generation sources) from the date of adoption of this resolution until January 31, 2017 (the Effective Period) at which time the City of Newark’s participation in the ECAEPC will be subject to renewal.