(a) Solicitation of Contracts.
(1) Contracts for the purchase or sale-incidental-to-purchase of wholesale utility commodities and services, providing for an estimated expenditure not exceeding $85,000.00, shall be solicited by informal invitation for bids or informal request for proposals in accordance with Section 2.30.400. Contracts for the purchase or sale-incidental-to-purchase of wholesale utility commodities and services, providing for an estimated expenditure exceeding $85,000.00, shall be solicited by formal invitation for bids, formal request for proposals or combination thereof, in accordance with Section 2.30.410, 2.30.420 or 2.30.430 or through solicitation of counterparties enabled to transact under a Council-approved master agreement in accordance with Section 2.30.340(a)(3).
(2) Council shall pre-approve standard form master agreement templates for wholesale utility commodities and services and such agreement shall be made publicly available.
(3) Whenever the city desires to award a contract under a Council-approved master agreement for wholesale utility commodities and services, any counterparty which has executed a Council-approved master agreement with the city, and is otherwise eligible to bid for or propose in regard to the particular transaction in accordance with the Energy Risk Management Policy, Guidelines, and Procedures Manual, may be solicited in writing. The counterparty offering the price and other required product and performance terms and conditions for wholesale utility commodities and services deemed to be the most advantageous to the city shall be eligible for an award of contract respecting the transaction.
(b) Delegation of Master Agreement Terms and Conditions. For master agreements and other contracts for wholesale utility commodities and services not otherwise within the City Manager's authority to award, the Council may authorize the City Manager to award and sign contracts with qualified, eligible counterparties. The Council authorization shall specify the limits of the authority delegated, including the maximum expenditure limit of the authority and the terms of the contracts and/or transactions that may be executed under the delegation of authority.
(1) Electricity master agreements. Any Council action delegating authority to the City Manager to contract for electricity commodities and services shall specify generally at least the following terms and conditions: quantity and the description of energy and energy services to be procured, including, without limitation: on-peak and off-peak energy and ancillary services; term, specifying a not-to-exceed period of time; period of delivery denoted in years or months or years and months; and point of delivery.
(2) Gas master agreements. Any Council action delegating the authority to contract for gas commodities and services shall specify generally at least the following terms and conditions: quantity and the description of gas services to be procured, including, without limitation: scheduled gas and gas transportation services; term, specifying a not-to-exceed period of time; period of delivery denoted in years or months or years and months; and point of delivery of the locus on the interstate transmission system at which transfer of title is made.
(c) Required Contract Terms for Wholesale Utilities Commodities and Services Contracts. The city shall use standard form contracts, as practicable, including, without limitation, form contracts copyrighted by the Edison Electric Institute, the Western States Power Pool Inc., Inc., the North American Energy Standards Board, Inc, and contracts used by the city's "feed-in tariff" energy program. Unless waived by Council action, a contract for gas or electricity wholesale utility commodities and services, and any amendment to that contract, shall not be awarded by the city and executed by the duly authorized representatives of the city, unless the following terms and conditions are required: (1) governing law shall be the laws of the State of California; (2) choice of venue shall be the county of Santa Clara; and (3) a counterparty shall obtain and maintain during the term of the contract the minimum credit rating established as of the date of award of contract of not less than a BBB- credit rating established by Standard & Poor’s and a Baa3 credit rating established by Moody's Investors Services.
(d) Public Agency Contracts. The city may procure and make sales-incidental-to-purchase of wholesale utility commodities and services from energy counterparties through public agencies, including, without limitation, the Northern California Power Agency and the federal Western Area Power Administration.
(1) The city may engage the public agency to act as the agent of the city to procure wholesale utility commodities and services, provided that the public agency conducts a competitive selection process and awards one or more contracts in substantial compliance with the contract procurement procedures and requirements of this chapter, unless such substantial compliance is waived by the Council action accompanied by findings in support of the waiver.
(2) The City Attorney shall determine whether the contract procurement process of the public agency substantially complies with the provisions of this chapter. For the purposes of this Section 2.30.340, the public agency's competitive selection process, if any, shall be deemed to substantially comply if the public agency:
a. conducts a formal or an informal invitation for bids or request for proposals process to solicit bids or proposals for the provision of wholesale utility commodities and services;
b. executes a standard form contract, including, without limitation, a form contract copyrighted by the Edison Electric Institute, the Western States Power Pool, Inc. Inc., or the North American Energy Standards Board, Inc.; and
c. unless waived by the Council, the standard form contract requires or specifies:
1. the governing law shall be the law of the State of California;
2. the choice of venue shall be identified according to either the county in which such public agency does business, or the preference for federal or state court jurisdiction over the public agency, the energy counterparty, and the contract; and
3. the energy counterparty shall obtain and maintain during the term of the contract the minimum credit rating established as of the date of award of contract of not less than a BBB- credit rating established by Standard & Poor’s and a Baa3 credit rating established by Moody's Investors Services.
(e) Energy Risk Management Policy, Guidelines and Procedures Manual. All procurement of wholesale utility commodities and services, shall conform to the requirements of the Energy Risk Management Policy, Guidelines and Procedures Manual.
(Ord. 5494 § 20, 2020: Ord. 5387 § 1 (part), 2016: Ord. 5148 § 1, 2012: Ord. 4827 § 1 (part), 2004)