22-1063ORDINANCE NO. 22-1063
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPALCORPORATION, AUTHORIZING THE CITY MANAGER TO AUTHORIZE THE SPEND FOR
AN INSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, FOR FORCEDOUTAGE INSURANCE OF THE DENTON ENERGY CENTER FOR THE SUMMER OF 2022;PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFE(_’TIVE DATE (RFP 8004 – AUTHORIZING THE SPEND FOR POWER PLANT FORCEDOUTAGE INSURANCE COVERAGE AND AWARDING SUCH INSURANCE BINDER TO
ARCHER CONTINGENT ENERGY RISK, LLC, IN THE SUMMER 2022 NOT-TO-EXCEED
AMOUNT OF $1,100,000.00).
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 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 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 acceptedherein; 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.
RFPNUMBER CONTRACTOR AMOUNT
8004 Archer Contingent Energy Risk, LLC $ 1 , 100,000.00
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, andrelated 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; 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 $1,100,000.00.
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
secondedby Brian beakfollowing vote H_ - a :
W andordinance was made by eadnliFiapproved by theThis ordinance was passed
Aye
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Nay Abstain Absent
Mayor Gerard Hudspeth:Vicki Byrd, District 1 :
Brian Beck, District 2:
Jesse Davis, District 3 :
Alison Maguire, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
PASSED AND APPROVED this the \j+h day 2022
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ATTEST:
ROSA RIOS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:MACK REINWAND, CITY ATTORNEY
Digitally signed by Marcella LunnDN: cn=Marcella Lunn, o, ou=City
By. VXiUtRl!\ bw\h :;Tili.;-"'"~'„“-A+ A - Date:2022.05.05 11 :06:33 0S'00