21-97021 -970
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION, AUTHORIZING THE CITY MANAGER, OR THER DESIGNEE, TO
AUTHORIZE THE SPEND FOR AN iNSURANCE BINDER TO ARCHER CONTINGENT
ENERGY RISK. LLC, FOR FORCED OUTAGE HqSURANCE OF THE DENTON ENERGY
CENTER FOR THE SUMMER OF 2021; PROVmING FOR THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVDHVG AN EFFECTIVE DATE (RFP 7686 – AUTHORIZING THE
SPEND FOR POWER PLANT FORCED OUTAGE INSURANCE COVERAGE OR PRODUCTS
AND AWARDING SUCH RVSURANCE BINDER TO ARCHER CONTnqGENT ENERGY RISK,
LLC, IN THE SUMMER 2021 NOT-TO-EXCEED AMOUNT OF $975,000.00).
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 of the Denton Energy Center for the Summer of 202 1 ;
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 of price 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 of the materials, equipment, supplies, or services approved and accepted
herein; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAPqS:
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
7686 Archer Contingent Energy Risk, LLC $975,000.00
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 ofthe proposal, the City Manager, or
their designated representative, is hereby authorized to execute the written contract; 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 $975,000.
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.
Th, m,ti,„ t, ,pp„,, thi, „di„,„„ w„ m,d, by T<ss< b\vis and
seconded by %D \ Me . \tRee . The ordinance wal passa and approved by thefollowing vote n - a :
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:
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PASSED AND APPROVED this the 24+D day of 202 1
GERARD HUDSPETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY L\\\III tIlIIfDOF
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111
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
Digitally signed by Marcella Lunn
DN: dc=com, dc=cityofdenton, dc=codad,
ou=Department Users and Groups,
ou=General Government, ou=Legal,
cn=Marcella Lunn,
email=MaKella.Lunn@cttyofdenton.com
ate
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