Resolution No. 74901 RESOLUTION NO. 7499
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A RESOLUTION OF THE CITY COUNCIL OF
3 THE CITY OF VERNON AMENDING
RESOLUTION NO.7296 WHICH APPROVED
4 AND AUTHORIZED AGREEMENTS FOR THE
PURCHASE AND SALE OF ELECTRIC
5 POWER, TRANSMISSION AND CAPACITY IN
NEW MARKETS
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WHEREAS, the City Council has approved a Resource
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Procurement Plan and Credit Risk Management Policy (the "Policy")
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for the Utilities Department (the "Department") in order to
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provide the governing principles and tools under which the
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Department's Policy will operate in the deregulated electric
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power market;
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WHEREAS, the Policy authorizes the Department to
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transact business in electricity futures and various other
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markets and provides for the introduction of new products for the
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purpose of power resource procurement;
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WHEREAS, the City Council has approved, pursuant to
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Resolution No. 7296, the Department's access to new markets for
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the purchase and sale of electric power and related products in
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order to trade in electricity commodity futures and options; and
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WHEREAS, the City Clerk, by letter dated February 3,
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2000, recommends that Resolution No. 7296 be amended to expand
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the Department's use of futures and options for power resource
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procurement to include natural gas, since the price of natural
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gas has a definite correlation with the price of electrical
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energy.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
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1 THE CITY OF VERNON AS FOLLOWS:
2 SECTION 1: The City Council of the City of Vernon does
3 hereby find and determine that the recitals contained hereinabove
4 are true and correct.
5 SECTION 2: The City Council of the City of Vernon
6 hereby amends Resolution No. 7296 to authorize the Department to
7 purchase, sell or otherwise trade in natural gas commodity
8 futures and options pursuant to and within the parameters of the
9 Policy.
10 SECTION 3: The City Council of the City of Vernon
11 hereby authorizes the City Administrator or his designee, which
12 may include the Director of the Utilities Department or the
13 Assistant Director of Resource Management, to purchase, sell or
14 otherwise trade in natural gas commodity futures and options for
15 the City with full power and authority to determine the nature
16 and terms of any such purchase, sale or other dealing, to bind
17 the City to carry out any contract arrangement or other
18 transaction which shall be entered into, and to fully effect and
19 carry out the purpose of this Resolution.
20 SECTION 4: The City Council of the City of Vernon
21 hereby authorizes the City Administrator or his designee, which
22 may include the Director of the Utilities Department or the
23 Assistant Director of Resource Management, to execute and deliver
24 any other documents incidental to the purchase, sale or trading
25 of natural gas futures and options on behalf of the City.
26 SECTION 5: The City Clerk of the City of Vernon shall
27 certify to the passage of this Resolution and thereupon and
28 thereafter the same shall be in full force and effect.
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, APPROVED AND ADOPTED this 15th day of February, 2000.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MAL URG, Ma or
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1 STATE OF CALIFORNIA )
2 COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 7490, was duly adopted by the City Council of the
7 City of Vernon at a regular meeting of the City Council duly held
8 on Tuesday, February 15, 2000, and thereafter was duly signed by
9 the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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QC
SUPPORTING
DOCUMENTS
OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
TO: Kenneth DeDario, Dire for of Utilities
FROM: Gloria J. Orosco, Deputy City Clerk
DATE: February 22, 2000
RE: Resolution Nos. 7489 & 7490
Transmitted herewith is a copy of Resolution Nos. 7489 &
that were approved by City Council on February 15, 2000.
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
February 22, 2000
Eric Fresch, Esq.
1735 Vistazo West
Tiburon, CA 94920
Re: Resolution Nos. 7489 & 7490
Dear Eric:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
1N:
Transmitted herewith is a copy of Resolution Nos. 7489 &--
that were approved by City Council on February 15, 2000.
Very truly yours,
5>G is J. Or s
Chief Deput City Clerk
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