Chapter 26.40

POWER PRODUCTS PROCUREMENT AND CONTRACT AUTHORITY

Sections:

26.40.020 Contract authority.

26.40.030 Procurement process.

26.40.040 Risk management.

26.40.050 Counterparties.

26.40.060 No speculative buying and selling.

• The purpose of this Chapter is to establish processes to allow the City to procure Power Products to best meet the needs of SJCE customers.

• (Ord. 30904.)

The City Manager and Director shall be authorized to enter into agreements for the purchase and sale of Power Products in accordance with the following limitations:

• A. The Director is authorized to negotiate and execute on behalf of the City, without the prior approval of the City Council, Short-Term Agreements for the purchase and sale of Power Products.

• B. The City Manager is authorized to negotiate and execute on behalf of the City, without the prior approval of the City Council, Short-Term and Medium-Term Agreements for the purchase and sale of Power Products.

• C. The City Manager is authorized to negotiate and execute on behalf of the City, without the prior approval of the City Council, Master Power Purchase and Sale Agreements consistent with the form previously approved for use by the City Council for the purchase and sale of Power Products. Any purchases or sales of Power Products pursuant to such Master Power Purchase and Sale Agreements are subject to the limitations in subsections A and B.

• D. The City Council must approve LongTerm Agreements for the purchase and sale of Power Products.

• E. The City Manager and the Director may enter into agreements under subsections A, B, and C that comply with the following limits:

  1. The purchase and sale of Power Products shall be for the purpose of meeting forecasted load, minimiz-

T26:7

SAN JOSÉ CODE

§ 26.40.020

ing risks, stabilizing power costs, complying with regulatory obligations, or City Council goals and shall comply with the ERMP.

  2. The annual Power Product costs may not exceed the annual Power Product expenditure approved by the City Council in the adopted budget for that fiscal year. If the agreement is for more than one year, the commitment must be subject to the appropriation of funds, and payment obligations must be paid solely from the San José Clean Energy Operating Fund. 

• F. Chapter 4.04 of this Code setting forth contract authority for goods and services shall not apply to the purchase and sale of solely Power Products.

• (Ord. 30904.)

The purchase and sale of solely Power Products shall comply with the competitive bidding or other procurement procedures set forth in the ERMP. Chapter 4.12 of the San José Municipal Code setting forth requirements for the competitive procurement of goods and services shall not apply to the purchase and sale of solely Power Products. (Ord. 30904.)

• A. The ERMP shall be reviewed annually, or as directed by the City Council, and any proposed changes shall be approved by resolution of the City Council.

• B. A policy shall be established regarding appropriate reserves to mitigate operational risks.

• C. All agreements for the purchase or sale of Power Products shall contain appropriate risk management provisions consistent with the ERMP.

• (Ord. 30904.)

• A. Wholesale trading shall be carried out only with Counterparties meeting minimum standards of creditworthiness in conformance with the ERMP.

• B. Counterparties may be required to post a guaranty or security in an amount and with instruments in conformance with the ERMP.

• (Ord. 30904.)

Speculative buying and selling of Power Products on behalf of SJCE shall be prohibited. (Ord. 30904.)