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HomeMy WebLinkAboutresolution.council.036-24RESOLUTION 4036 (Series of 2024) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING THE SERVICE SCHEDULE M, AMENDED AND RESTATED TOTAL POWER REQUIREMENTS POWER PURCHASE AGREEMENT("AMENDED SERVICE SCHEDULE M AGREEMENT")) AND AMENDMENT NUMBER 1 FOURTH REVISED SUPPLEMENTAL ELECTRICAL UTILITY AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAIDAGREEMENTS ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, on June 25, 1984, City Council for the City of Aspen approved contracts between the City of Aspen and the Municipal Energy Agency of Nebraska ("MEAN' for the original participation in the MEAN Service Schedule M Power Purchase Agreement ("Service Schedule M Agreement"); and WHEREAS, on September 26, 2023, City Council for the City of Aspen approved contracts between the City of Aspen and the Municipal Energy Agency of Nebraska ("MEAN") for the Fourth Revised Supplemental Agreement, a Supplemental Agreement to the Schedule M Agreement; and WHEREAS, MEAN announced on December 1, 2023, its intent to amend and modernize the Scheule M Agreement to continue its purpose of providing long-term, cost-effective power supply consistent with today's electric utility standards to be effective on April 1, 20240 and WHEREAS, the Amended Service Schedule M Agreement will amend and replace in its entirety the Service Schedule M Agreement governing Aspen's purchase of power from MEAN; and WHEREAS, The City acknowledges that certain of the generating facilities used by MEAN to provide electricity to the City have been financed with tax- exempt bonds and the use of the electric output of such generating facilities is restricted by federal tax regulations. In order to permit MEAN to comply with such federal tax regulations, the City agrees to use all of the electricity delivered to it by MEAN solely to serve customers in its long-term service area pursuant to generally applicable and uniformly applied rates and charges. "Long-term service area" means any area that the City has provided electric service to for at least ten DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733Public Works DirectorScott Miller4/3/2024 | 10:42:49 AM PDT DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 DocuSign Envelope ID: 4FCC13F8-9876-4B0C-93EB-A32D7CB87733 years. Any other use, resale or remarketing of the electricity delivered by MEAN to the City must be approved in writing by MEAN; and WHEREAS, the Amendment Number 1 to Fourth Revised Supplemental Agreement ("Amendment No. 1) will amend the existing Fourth Revised Supplemental Agreement between Aspen and MEAN, which recognizes existing local generation and allows the Aspen to maintain existing agreements and continue its beneficial use of its existing hydroelectric facilities; and; and WHEREAS, to participate in the program, the City Council for the City of Aspen must accept and approve the aforementioned Amended Service Schedule M Agreement and Amendment No. 1, attached hereto as Exhibit A and Exhibit B; and WHEREAS, execution of the Amended Service Schedule M Agreement and Amendment No. 1 (collectively "the Agreements") will continue to ensure the City will have a long-term, cost effective power supply, and accomplish its goal of providing 100% renewable electric energy to its electric utility customers; and WHEREAS, approval and adoption of the Agreements serves the public interest and the interest of the City Electric Utility customers. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, The City Council of the City of Aspen hereby approves the Amended Service Schedule M Agreement and Amendment No. 1, attached hereto as Exhibits A and B, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 12th day of March, 2024. Torre, Mayor I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held, March 12th, 2A24. Nicole Henning, Cit Jerk DocuSign Envelope ID: 1 B428F55-995E-4D84-89E7-9DE4725FD65D TO FOURTH REVISED SUPPLEMENTAL AGREEMENT This Amendment No.1(Amendment) to fihe Fourth Revised Supplemental Agreemenfi (Supplemental Agreement) is entered into by and between Municipal Energy Agency of Nebraska (MEAN) and the City of Aspen, Colorado (Aspen), collectively referred to herein as the "Parties". RECITALS A. MEAN and Aspen have entered into Service Schedule M, a Total Power Requirements Power Purchase Agreement dated effective June 25, 1984 (1984 Agreement). B. Contemporaneously with execution of this Amendment, MEAN and Aspen are executing an Amended and Restated Total Power Requirements Power Purchase Agreement, as such agreement may be modified from time to time by and between the Parties (Amended Schedule M Agreement), incorporated herein by reference, with deliveries commencing April 1, 2024, which amended and restated the 1984 Agreement. C. The Parties have entered into the Supplemental Agreement which was intended to extend through the term of the 1984 Agreement. D. The Parties desire to modify the Supplemental Agreement to acknowledge the execution of the Amended Schedule M Agreement and to clarify the termination date of the Supplemental Agreement. In consideration of the mutual promises and covenants set forth herein, the Parties agree as follows: 1. Unless otherwise defined in this Amendment, capitalized terms used in this Amendment shall have the same meaning as that given to such terms in the Supplemental Agreement. 2. This Amendment is effective on the effective date of the Amended Service Schedule M Agreement (Effecfiive Date). 3. From and after the Effective Date all references to the "Service Schedule M Total Power Requirements Power Purchase Agreement (Schedule M Agreement)" in the Supplemental Agreement shall be deleted and shall be replaced by references to the "Service Schedule M Amended and Restated Total Power Requirements Power Purchase Agreement (Schedule M Agreement)". 4. From and after the Effective Date, Section 4 of the Supplemental Agreement shall be deleted in its entirety and replaced with the following: 4. Aspen shall be treated, for purposes of the Schedule M Agreement, as if those hydroelectric generating facilities listed in Exhibit B which actually supply capacity and energy to Aspen, were WAPA Allocations (as defined in the Schedule M Agreement), and the following provisions of the Schedule M Agreement shall not be applicable to Aspen with regard to the facilities listed on Exhibit Be 1 DocuSign Envelope ID: 1 B428F55-995E-4D84-89E7-9DE4725FD65D Schedule M Agreement Section VIII. Commitment of Capacity 5. From and after the Effecfiive Date, Section 7 (which regards Contract Purchaser, as defined in the 1984 Agreement) shall be deleted in its entirety and replaced with the following. 7. Reserved. 6. From and after the Effective Date, the following is added as Section 14 of the Supplemental Agreement. 14. Termination Date, This Supplemental Agreement shall remain in effect through the last day of service by MEAN to the Aspen under the Schedule M Agreement. 7. Unless expressly changed by this Amendment, all other terms of the Supplemental Agreement shall remain in full force and effect. 8. This Amendment may be executed in multiple counterparts, including emalls, each one of which will be considered an original agreement, but all of which together will constitute one and the same instrument. 9. This Amendment contains the entire agreement between the Parties with respect to the subject matter of this Amendment and supersedes any previous understandings, commitments, or agreements, oral or written, with respect to such subject matter of this Amendment. [SIGNATURE PAGE FOLLOWING.] 2 DocuSign Envelope ID: 1 B428F55-995E-4D84-89E7-9DE4725FD65D The Parties have, through the authorized actions of their officers, executed this Amendment No. 1 to the Fourth Revised Supplemental Agreement. MUNICIPAL ENERGY AGENCY OF NEBRASI<A By: Robert L Digitally signed by Roberi L Poehling Poehlin Date:2024.02.23 g 10:13:04-06'00' Executive Director Date: February 23, 2024 CITY OF ASPEN, COLORADO By; DocuSlgned by: Title: city Manage r Date: 3/13/2024 I 12:28:52 PM PDT AmendmentNvlToFourthRevised5irpplementalAgmt20240202.docx 3