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HomeMy WebLinkAboutresolution.council.090-05RESOLLrrlON NO. 90 Series of 2005 A RESOLUTION OF THE CITY OF ASPEN, COLORADO, APPROVING THE CITY OF ASPEN'S MEMBERSHIP IN THE CHICAGO CLIMATE EXCHANGE. WHEREAS, climate change could be the most critical current threat to Aspen's way of life, health, and economy; and WHEREAS, local actions can help to pave the way for national and international leadership; and WHEREAS, the City Council has determined that addressing the potentially adverse affects of global warming upon the health and economic well-being of its citizens and guests is, and should be, of the highest priority for the City of Aspen; and WHEREAS, the City Council has determined that more should be done to address the potential risks associated with the phenomenon of global warming, including, but not necessarily limited to, greenhouse gas reduction activities, energy security and cost reduction; affordable housing; mobility and, transportation choices; solid waste reduction and recycling; reliable, affordable water supply; urban and rural forest protection; sustainable economic development; and, clean air. WHEREAS, the Chicago Climate Exchange (CCX®) is the world's first and North America's only voluntary, legally binding, pilot greenhouse gas reduction and trading program for emission sources and offset projects. WHEREAS, membership means a legally binding commitment to reduce the city government's greenhouse gas emissions by 1% per year fi.om 2003-2006 below the below an average baseline of 1998-2001. NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section One. The City Council of the City of Aspen hereby authorizes the mayor to sign the 'CCX Commitment Letter' and the 'Authorization Agreement' provided in the 'CCX Membership Application, thereby officially requesting membership in the Chicago Climate Exchange. Section Two. The City Manager is hereby directed to submit the completed 'CCX Membership Application' and signed 'CCX Commitment Letter' with the membership fee of $5,000. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the A? ~y of ~~:oo~. I, Kathryn S. Koch, 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 ~'~o~ , 2005. Katta'yn S. I~cl~, Cit~ Cleik D JR- saved: 1 l~21/2005~G:~globalwarmmg~ccx~ccx Resolution.doc Date: TNE CI~ OF ASPEN O~FICE OF THE MAYOR Dr. Richard Sandor Chairman and CEO Chicago Climate, Exchange 190 S. LaSalle St., Suite 800 Chicago, IL 60603 Dear Dr. Sandor, This letter represents the City o~' Aspen's legally binding commitment to 'participate in the Chicago Climate Exchange (CCX) as a Member, in accordance with the terms and conditions listed in the Chicago Accord. Tha City of Aspen also agrees to trade its CCX Greenhouse Gas Emissions Allowances and CCX-registered Certified Emission Offsets exclusively through the Chicago Climate Exchange with other CCX Registry _ Account Holders. This agreement shall be effective as of the date hereof and' shall continue through D ember 31. 2006. ~ ~-/~"'7'' S~gned ~ Name Helen Kalin Klanderud Title Address Mayor 1'30 So. Galena Street Aspen, Colorado 81611 Phone 970.920.5199 Date November 29th, 2005 130 So~ GALEN~ STREET '.ASPEN, COLORADO 81611'1975 ' PHONE 970.920.5199 · FaX 970.920.5119 printed on Recycled Paper CHICAGO CLIMATE EXCHANGE (CCX®) APPLICATION FOR MEMBERSHIP Welcome to CCX! All applicants for membership in CCX must complete the attached application. Depending on your membership category, additional forms and documents may be required as described below. The membership categories are summarized as follows: Member - Members have direct Greenhouse Gas ("GHG") emissions from facilities in the United States, Canada or Mexico and enter into a legally binding commitment with CCX to reduce its direct emissions 1% per year over a four year period (2003 - 2006). Associate Member - Associate Members have negligible direct GHG emissions and enter into a legally binding agreement with CCX to offset all indirect GHG emissions associated with selected business activities. Participant Member - This membership category includes Offset Providers, Offset Aggregators and Liquidity Providers o Offset Provider/Offset Aggregators are able to sell CCX offsets produced by qualifying CCX- registered offset projects o Liquidity Providers trade or engage in market-making activities on CCX for purposes other than compliance with the CCX emissions reductions schedule. Exchange Participant - Exchange Participants have no compliance requirements and may only purchase and retire CCX Carbon Financial Instruments ("CFIs") All membership categories are assigned a CCX Registry account to track their trades and holdings of CFIs. The membership grid on the following page outlines what information/documents are required to be submitted for each category of membership. Upon completion of the application, please send all items to the attention of: Director of Compliance Chicago Climate Exchange 190.S. LaSalle, 8th Floor Chicago, IL 60603 Please direct any questions to Fran Kenck, Director of Compliance at 312.229.5162 or at fkenck~chicagoclimateexchange.com Please note: .ds an electronic trading facility providing for the execution of transactions on a principal to principal basis between eligible commercial entities in exempt commodities, CCX qualifies as an "exempt commercial market" as defined in Section 2(h)(3) of Commodity Exchange Act and in Part 36.3 of the regulations of the Commodity Futures Trading Commission (CFTC). CCX is not registered with, or recognized, designated, licensed or approved by the CFTC..dll CCX Members entering into transactions on the CCX Trading Platform must be an "eligible commercial entity" as defined under section la(il) of the Commodity Exchange Act. Application Requirements Membership Category Associate Member Offset Provider/ Liquidity Exchange Required Member Offset Aggregator Provider Participant General Information/ ~ ~ ~ ~, ~r Authoriztien Required only for Required only for Required only for Eligible applicants who applicants who Commercial applicants who wish ~' ~' wish to access the Entity wish to access the to access tho CCX CCX Trading Questionnaire CCX Trading Trading Platform Platform Platform CCX Authorized Users (Tradiug ff ~' ~ xtr ~ Platform/ Registry Access) Commitment ~ x~ x~ n/a n/a Letter Application Fee ~ ntr ~tr ~ ~r Organizational Required for all membership categories, except applicants who are individuals. ] I Board I Resolution (or Required for all membership categories, except applicants who are individuals. equivalent document) 2 Financial I Required only for applicants who will have access to the CCX Trading Platform whose I Information s[ Elioible Commercial EntiN Status is based on financial information. . I Required document/information for membership category, regardless of applicant's form of organization or whether it will have access to the CCX Trading Platform. ~ Organizational documents are documents that demonstrate the legal existence of an entity. Examples of organizational documents include articles of incorporafion, articles of formation, certificate of limited partnership, etc. 2 A board resolution or equivalent document attests that the person signing the application on behalf of the entity has been authorized by the cafity's management. If the entity also qualifies for access to the CCX Trading Platform, the resolution must indicate that lrading has been authorized by the entity's management. ~ For publicly lraded companies, applicants must submit their most recent Form 10-K and 10-Q. All other applicants must submit their most recent audited fmancial statement. If the applicant does not have an audited financial statement, CCX may accept a letter from a certified public accountant attesting to the applicant's qualifications as an Eligible Commercial Entity. Certain floor brokers and floor traders may submit a guarantee letter from a clearing firm in lieu of this letter. General Information Type of Membership Member [] Participant Member Associate Member [] o Offset Provider o Offset Aggregator Exchange Participant [] o Liquidi(y Provider [] [] [] 1. Applicant's Full Legal Name: 2. Business Description: Municipality 3. FEIN (entities)/Social Security Number (individuals): · 4. Address: 130 So. Galena Street City of Aspen, Colorado 6000563 City, State, Zip Code: Aspen, Colorado 81611 5. Primary Contact: Dan Richardson Title: Global Warming Project Manager E-Mail Address: danr(~ci.aspen.co.us Phone Number: 970.920.5071 6. Website: www.aspenglobalwarming.com 7. Type of organization (check one): [] Corporation organized under the laws of: __ [] Limited Liability Company organized under the laws of: [] Limited Partnership organized under the laws of: [] General Partnership organized under the laws of: [] Other (please specify): Municipality 8. Financial and Banking Information (Complete below or attach separately: Applicant's Fiscal Year End: 12/31 Banking Information (for settlement of CCX transactions) Bank Name: Address: City, State, Zip Code: Primary Contact (Name): Phone Number: Account Number: ABA Routing #: * Please note that it is CCX'spolicy not to accept wires/checks from or to send wires/checks to an account other than that in the name of the member. No exceptions will be made to this policy. General Information & Authorization/Agreement o The following questions pertain specifically to the applicant's activities related to trading on regulated exchanges and over-the-counter markets: A. Has the applicant ever been denied exchange registration, or had a registration suspended, revoked, or conditioned by a governmental or regulatory authority during the past 5 years? [] Yes [] No B. Has the applicant ever been denied membership or cleating privileges by any commodity or securities exchange/clearing organization or had any membership or clearing privilege ever been suspended, revoked, or conditioned during the past 5 years? [] Yes [] No C. Has the applicant ever been convicted, pled guilty, entered a plea of"no contest" or entered into a voluntary settlement as to any violation of any criminal or peaal code during the past 5 years? [] Yes [] No D. Is the applicant subject to any investigation or have anY charges been brought against it by any governmental or regulatory authority or exchange/clearing organization for violation of its laws or rules during the past 5 years? [] Yes [] No Does the applicant currently have any judgments, liens, attachments or other encumbrances filed against it during the past 5 years? [] Yes [] No If any of the questions above (a through e) are answered "yes", please attach a statement giving complete details as to dates, parties, circumstances and disposition for all matters that resulted in sanction of greater than $5,000. Please include copies of decisions or final notices pertaining to the information provided in the statement. General Information & .~uthorization/Agreement AUTHORIZATION/AGREEMENT Applicant hereby applies to beeome a member of the Chicago Climate Exchange (CCX®) in the membership category selected in this application and warrants the truthfulness of the answers provided to all questions on this application and to any other questions that may be asked by the staff of the Exchange or NASD or any CCX Conmfittee. Applicant agrees to maintain the accuracy and completeness of the information contained in this application throughout the application process. Applicant acknowledges that it meets all of the requirements for participation in the membership category it has applied for, as is outlined in the CCX Rulebook. Applicant further acknowledges and agrees to abide by all the requirements and obligations of CCX. Applicant undertakes to immediately notify the Exchange in writing of any material change in any information contained in this application for or upon becoming aware of any event that may impact on eligibility for participation in its applicable membership category. Applicant authorizes CCX and the National Association of Securities Dealers ("NASD") to obtain information from souroes that they deem appropriate in order to adequately evaluate and process this application, to conduct required financial reviews in accordance with applicable rules and to ensure the integrity and effective operation of CCX in the future. Applicant understands that failure to provide full and accurate information may result in this application being delayed or rendered invalid. Applicant has read and agrees to abide by the rules of the Exchange as provided in the CCX Rulebook as they relate to the membership category for which it has applied. Applicant will comply with the Terms and any and all laws, rules, regulations or orders applicable to Applicant's access to and use of the System, the Exchange, and the Exchange Data. Signed and accepted by a duly authorized representative off Applicant: ' Signatu~~ Date: /I/~,~/[~ Print Name: Helen Kalin Klanderud Title: Mayor Eligible Commercial Entitx Questionnaire As an exempt market, all membership categories that will be entering into transactions on the CCX Trading Platform must qualify as an Eligible Commercial Entity ("ECE'). This questionnaire is required only for applicants who meet the requirements to enter trades directly via the CCX Trading Platform. This questionnaire must be completed by all applicants who qualify and can be used as a guide for all applicants to determine if they meet the requirements of an ECE. There are four categories under which an applicant may qualify as an Eligible Commercial Entity. ("ECE"). These categories are depicted on the attached pages as categories A, B, C and D. The applicant need only qualify under one of the four categories. For example, if the applicant qualifies under category A, it is not necessary to proceed to categories B, C and D. To qualify under a particular category, you must be able to check at least one box in Column I and one box in Column II to be considered an ECE. The four categories are described briefly below: Category A Category B Category C Category D Thts category ts for certatn types of enttttes (described tn column II) that are engaged in a commercial activity related to the commodity (described in column I). This category is for certain types of entities (described in column II) that are not engaged in the commercial activity related to the commodity but meet certain ~nancial qualifications (described in column I) This category is for certain types of collective investment vehicles (described in column I) that are not engaged in the commercial activity related to the commodity. Depending on their participants, certain.financial qualifications must be met (described in column II) This category is for registered floor brokers or floor traders (described in column I) that meet certain qualifications (described in column Due to the nature of the CCX emission reduction/offset program, Members and Associate Members will be deemed to be engaging in a commercial activity and will generally fall into Category A. All other membership categories must determine which category best fits their operations and complete the form accordingly. IT IS ACCEPTABLE TO COMPLETE AND RETURN ONLY THE PAGE CONTAINING THE CATEGORY UNDER WHICH YOU QUALIFY AS AN ECE. The term "commodity~ as used in this section and in the following pages is defined in Section la(4 ) of the Commodiiy Exchange Act as wheat, cotlon, rice, corn, oats, barley, ~y¢, flaxseed, grain sorghums, mill feeds, butter, eggs, Solarium tuberosma (Irish polatoes), wool, wool tops, fats and oils (including lard, tallow, cottomeed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, coaonsee~ peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange jince, and all other goods aad mlicles, except onions as provided in section 13-1 of this title, and all services, fights, and interests in which contracts for future dellv ecy axe presently or in the future dealt in. Eligible Commercial Entity Questionnaire Category To qualify as an Eligible Commercial Entity, you must be able A to check one box in Column I and one box in Column II. Column I Column II Applicant, in connection with its Applicant is acting for its own account and is (check trade or business: all that apply): 1. a financial institution (as defined by the CEA); [] 2. an insurance company (regulated by a State by a [] 1. has demonstrable ability, [] foreign government and is subject to comparable directly or though separate regulation as determined by the CFTC, including contractual ability, to make a regulated subsidiary or affiliate of such or take delivery of the insurance company); underlying commodity; or 3. a corporation, parmership, proprietorship, organization, trust or other entity-- a. that has total assets exceeding $10 million; [] or or AND b.the obligations of which under an agreement, [] contract, or transaction are guaranteed or otherwise supported by a letter of credit or 2. incurs risks, in addition to [] keepwell, support or other agreement by an price risk, related to the entity described under Section 1 (a)(11)(v)(II) commodity; of the CEA; or c.has a net worth of $1 million and is trading for [] hedging purposes. or or 4. a governmental entity (domestic or foreign) or [] political subdivision of a governmental entity, a multinational or supranational government entity, or an instrumentality, agency or department of 3. is a dealer that regularly [] any of the above. provides risk management or or othei' hedging services 5. a broker/dealer subject to regulation under the [] to, or engages in market- Securities and Exchange Act of 1934 or a futures making activities with, the commission merchant subject to the Commodity foregoing entities Exchange Act, (or a foreign entity performing a involving transactions to similar role or function, subject to foreign purchase or sell the regulation)k commodity or derivative or agreements, contracts, or 6. an associated person of a registered [] transactions in the broker/dealer. commodity, or 7. an investment bank holding company. [] 1 ffthe broker/dealer or FCM is a natural person, other requirements apply. See Section 1 (a)(12XAXviii) and (ix) of the Commodity Exchange Act. Eligible Commercial Enti~ Questionnaire Category To qualify as an Eligible Commercial Entity, you must be able B to check one box in Column I and one box in Column II. Column I Column II Applicant regularly enters into transactions to purchase or sell the commodities traded on CCX and is one of the following types of entities: 1. a f'mancial institution (as defined by the CEA); [] 2. an insurance company (regulated by a State by a foreign [] government and is subject to comparable regulation as Applicant has or is one [] determined by the CFTC, including a regulated of a group of entities subsidiary or affiliate of such insurance company); under common control or or management having 3. a corporation, partnership, proprietorship, in the aggregate $100 organization, trust or other entity-- million in total assets. a. that has total assets exceeding $ I0 million; [] or b. the obligations of which under an agreement, contract, [] AND or transaction are guaranteed or otherwise supported by a letter of credit or keepwell, support or other agreement by an entity described under Section 1 (a)(11)(v)(II) of the CEA; or c. has a net worth of $1 million and is trading for [] hedging purposes; or 4. a governmental entity (domestic or foreign) or political subdivision of a governmental entity, a multinational or supranational government entity, or an instrumentality, agency or department of any of a national government that either: a. owns and invests on a discretionary basis $25 million [] or more in investments b. enters into transactions only with entities described in 1, [] 2, 5, 6, or 7 in Section I or with an affiliated person of an FCM. or 5. a broker/dealer subject to regulation under the SEC Act [] of 1934 or a futures commission merchant subject to the CEA, (or a foreign entity performing a similar role or function, subject to foreign regulation)2; or 6. an investment bank holding company. [] If the broker/dealer or FCM is a natural p~rson, it does not quali~ as an ECE under this provision of the Commodity Exchange Act. Eligible Commercial Entity Questionnaire Category C To qualify as an Eligible Commercial Entity, you must be able ~ ~ to check one box in Column I and one box in Column II. Column I Column II Applicant regularly enters into Applicant is: transactions to purchase or sell the commodities traded on CCX and is a 1. A collective investment vehicle (as [] collective investment vehicle, which is defined in column I) whose defined as the following: participants include: · Qualified Eligible Persons as 1. an investment company registered [] defined by CFTC Rule 4.7(a); or under the Investment Company Act · Accredited Investors as defined in of 1940 or a foreign entity SEC Regulation D; or performing a similar function subject · Qualified Purchasers as defined in to foreign regulation; section 2(a)(5 I)(A) of the Investment Company Act of 1940 or that has or is one of a group of 2. a commodity pool that has total [] vehicles under common control or assets exceeding $5 million and is management having in the aggregate formed and operated by a registered AND $100 million in total assets. commodity pool operator or a foreign entity performing a similar or function subject to foreign regulation; 2. A collective investment vehicle (as [] def'med in column I) whose or participants do not include: · Qualified Eligible Persons; or 3. an ERISA plan, a governmental [] · Accredited Investors; or benefit plan or a foreign entity · Qualified Purchasers performing a similar function subject to foreign regulation that has total that has or is one of a group of assets exceeding $5 million or whose vehicles under common control or investment decisions are made by an management having in the aggregate registered investment adviser, a $ I billion in total assets. registered commodity trading advisor, a foreign entity performing a similar function subject to foreign regulation, a financial institution or insurance company. Eligible Commercial Entity Questionnaire Category To qualify as an Eligible Commercial Entity, you must be able D to check one box in Column I and one box in Column II. Column I Column II Applicant is: Applicant: 1. has total assets exceeding $10 [] million; A CFTC registered floor broker or [] or floor trader trading for its own AND 2. has total assets exceeding $5 [] account that is a member ora million and is trading for hedging designated contract market or has purposes; trading privileges on a designated or contract market. 3. has their trades on CCX [] guaranteed by a clearing member that is a member of a CFTC- registered derivatives clearing organization. CCX Authorized Users Applicant requests user access to the following systems for the individuals named below: ~ ~ .~lat~or~ ~lininls~ra~or~ Paul Menter [] [] [] Only Applicants that qualify as an Eligible Commercial Entity are allowed access to the CCX Trading Platform. Therefore only authorized individuals of ELIGIBLE COMMERCIAL ENTITIES are the only individuals who will be granted access to the CCX Trading Platform All Applicants are allowed access to the CCX Registry. For security masons, each individual that is named above must complete a separate Authorized. User Form (found at the end of this application). ~The User Administrator has the authority to grant or revoke user access to the CCX Trading Platform and/or the CCX Registry. Each applicant must designate at least one User Administrator. Authorized User Form Applicant/Member requests user access for the individual named below to the following systems (check aR that apply): *CCX Registry [] **CCX Trading Platform [] Access Level Super User (Drop-downm~lu. Sec ** below.) Narae~ Address Paul Menter, Director of Finance & Administration Services - City of Aspen, Colorado 130 So. Galena Street City, State, Zip: Aspen, Colorado 81611 Phone Number:. 970.920.5040 Email Address: Security Question: (Drop-down menu. See *** below.) Answer: paulm~ci.aspen.co.us The individual listed above agrees to abide by all CCX roles and conditions in the CCX Rulebook and subsequent amendments~ and advisories as they pertain to the CCX Trading Platform. (Signature is only required for indi~ls being gi_ve/~cess to the CCX Trading Platform asa Trader or Super User.) Confirmed By: /~ S ignamre o~p~ Paul Menter Organization: City of Aspen, Colorado Please note that, ia accordance CCX Rules, all CCX Members are obligated to notify CCX of any addition, deletion or other change of formal contact or other people authorized to use the CCX Registry and/or CCX Trading Platform. CCX Registry Access giv~ all users view only access to daily and monthly clearing statements, transaction history, and holdings. Direct emitting Members so have view only actress to holdings and emission summaries 0f applicable) CCX Trading Platform access allows five levels of user aceeas as described below. Reminder: Only applicants that are Eligible Commercial Entitiea may give user access ~ the CCX Trnding Platform. ~' Super User Allows the user to 1o$ in to the CCX Tmthnlg System. The user can execute orders os well as modif-d credit settings View Only .4ccounting Allows the user to log in to the CCX Trading System. lac user cannot enter orders, execute orders, or modify credit settings. Allows the user to retrieve Deal Reports. Will not allow user access to the Trading System. *** User must choose one of five security questions listed below: 1. What is your favorite sports tram? 2. What is your library card number? 4. What is your favorite vacation destination? 5. What is your favorite movie?