23-1092FILE REFERENCE FORM 23- toll
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ORDINANCE NO. 23-1092
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION, AUTHORIZING THE CITY MANAGER TO AUTHORIZE THE SPEND FORAN INSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, FOR FORCEDOUTAGE nqsuRANCE FOR THE DENTON ENERGY CENTER FOR THE SUMMER OF 2023 :PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE (RFP 8254 – AUTHORIZING THE SPEND FOR POWER PLANT FORCEDOUTAGE INSURANCE COVERAGE FOR THE SUMMER OF 2023, AND AWARDING SUCHINSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, IN THE NOT-TO-
EXCEED AMOUNT OF $1,050,000.00).
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 for the Denton Energy Center for the Summer of 2023 ;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, this procurement was undertaken as part of the City’s governmental
function; 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 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
8254 Archer Contingent Energy Risk, LLC $ 1 ,050,000.00
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 $1,050,000.00.
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.
S e C O n d e:hb: I! !i:: J== P Pd:L: :i S $ i : T:e VV a S r1:1IiS :rd in::yufollowing vote EL - a] :
Aye Nay Abstain Absent
Mayor Gerard Hudspeth:,/
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Vicki Byrd, District 1 :
Brian Beck, District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
PASSED AND APPROVED this the dt- d,y,f June‘, 2023.
H]}SPO
ATTEST:
JESUS SALAZAR, INTERIM CITY SECRETARY $ tIll IIII/ f/
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
Digitally signed by MarcellaLunn
DN: cn=Marcella Lunn, o,
BY: –M enton.com, c=USDate: 2023.05.22 1 1 :07:15
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