21-2756 - 7671 - Ordinance Executed21-2756
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME -RULE MUNICIPAL
CORPORATION, AUTHORIZING THE CITY MANAGER TO AUTHORIZE THE SPEND FOR
AN INSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, FOR FORCED
OUTAGE INSURANCE OF THE DENTON ENERGY CENTER FOR THE WINTER OF 2021-
2022; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE (RFP 7871— AUTHORIZING THE SPEND FOR POWER PLANT FORCED
OUTAGE INSURANCE COVERAGE OR PRODUCTS AND AWARDING SUCH INSURANCE
BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, FOR THE WINTER OF 2021-
2022, IN THE NOT -TO -EXCEED AMOUNT OF $575,000.00).
WHEREAS, the Energy Risk Management Policy, approved by Ordinance No. 20-420,
requires Denton Municipal Electric to purchase outage insurance to hedge the forced outage risk and
to limit potential losses for the Denton Energy Center; and
WHEREAS, the City has solicited, received, and evaluated competitive proposals for an
insurance binder for forced outage insurance ofthe Denton Energy Center for the Winter of 2021-
2022; and
WHEREAS, because the premium for forced outage insurance uses live market prices on the
date that the insurance binder agreement is executed, the City Manager, or a designated employee, is
authorized by this ordinance to select from the proposals the most advantageous proposal to the City
considering the relative importance ofprice and the other evaluation factors included in the request
for proposals, and to execute an insurance binder agreement with such provider; and
WHEREAS, the City Council has provided in the City Budget for the appropriation of funds
to be used for the purchase ofthe materials, equipment, supplies, or services approved and accepted
herein; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The following numbered request for proposal for materials, equipment,
supplies, or services shown in the "Request Proposals" on file in the office of the Purchasing Agent,
is hereby accepted and approved and the City Manager, or a designated employee, is authorized to
select from the following bidders the most advantageous proposal to the City considering the relative
importance of price and the other evaluation factors included in the request for proposals.
RFP
NUMBER CONTRACTOR AMOUNT
7871 Archer Contingent Energy Risk, LLC $575,000.00
SECTION 2. That by the acceptance and approval of a submitted proposal from a bidder
listed above by the City Manager, or a designated employee, the City accepts the offer of the bidder
submitting the proposal for such item and agrees to purchase the materials, equipment, supplies, or
services in accordance with the terms, specifications, standards, quantities, and for the specified
sums contained in the Proposal Invitations, Proposals, outage insurance binder agreement, and
related documents.
SECTION 3. That should the City and the selected bidder wish to enter into a formal written
agreement as a result of the acceptance, approval, and awarding of the proposal, the City Manager,
or their designated representative, is hereby authorized to execute the written contract referenced
herein; provided that the written contract is in accordance with the terms, conditions, specifications,
standards, quantities, and specified sums contained in the Proposal and related documents herein
approved and accepted. Any agreement is limited to a not -to -exceed amount of $575,000.
SECTION 4. The City Council of the City of Denton, hereby expressly delegates the
authority to take any actions that may be required or permitted to be performed by the City of
Denton under this ordinance to the City Manager, or their designee.
SECTION 5. The City Council hereby authorizes, accepts, and approves the bidder selected
by the City Manager, or their designated representative, from the above enumerated bidder list, and
authorizes the expenditure of funds therefor in the amount and in accordance with the approved bid.
SECTION 6. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by -e.. 9_ _y S and
seconded byb c ; o -x> "ae'C.t This ordinance was passed and approved by the
following vote [-7 - O]:
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1:
Brian Beck, District 2:
Jesse Davis, District 3:
Alison Maguire, District 4:
Deb Armintor, At Large Place 5:
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED this the Htn day of—QCCcMbe-C- 52021.
GVJRARI UWSPETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by Marcella
Lunn
DN: cn=Marcella Lunn, o,
ou=City of Denton,
BY: email=marcella.lunn@cityofdent
on.com, c=
Date: 2021.12.03 10:19:57 -06'00'