HomeMy Public PortalAbout2002_03_12_O004The Town of
Leesburg,
,rg ma
ORDINANCE NO.
2002-0-4
PRESENTED March 12, 2002
ADOPTED March 12, 2002
AN ORDINANCE: APPROVING A JOINT POWERS ASSOCIATION AGREEMENT
BETWEEN THE TOWN OF LEESBURG IN VIRGINIA AND THE
VIRGINIA ENERGY PURCHASING GOVERNMENTAL ASSOCIATION
WHEREAS, the VML/VACo Virginia Power Steering Committee (the "Committee"), composed
of representatives of local governments and political subdivisions of the Commonwealth, has for over
several decades negotiated on behalf of the Town of Leesburg and such governmental units a standard
form contract for their purchase of electricity supply and delivery service from Virginia Electric and
Power Company ("Virginia Power") as a sole source provider; and
WHEREAS, political subdivisions of the Commonwealth of Virginia are authorized under
Virginia law to exercise jointly powers that they otherwise are authorized to exercise independently, and
the terms and conditions of such authorization are currently set forth in Sections 15.2-1300, et seq. of the
Virginia Code (the "Joint Powers Act"); and
WHEREAS, the Virginia Electric Utility Restructuring Act (the "Restructuring Act") further
authorizes municipalities and other political subdivisions in the Commonwealth to aggregate their
electricity supply requirements for the purpose of their joint purchase of such requirements from licensed
suppliers, and the Restructuring Act provides that such aggregation shall not require licensure; and
WHEREAS, the Virginia Public Procurement Act (the "Procurement Act") exempts from its
competitive sealed bidding and competitive negotiation requirements (the "Requirements") the joint
procurement by public bodies, utilizing competitive principles, of electric utility services purchased
through member associations under the conditions set forth in the Procurement Act; and
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AN ORDINANCE: APPROVING A JOINT POWERS ASSOCIATION AGREEMENT
BETWEEN THE TOWN OF LEESBURG, IN VIRGINIA AND THE
VIRGINIA ENERGY PURCHASING GOVERNMENTAL ASSOCIATION
WHEREAS, the Committee recommends that the aggregation and procurement of electric supply,
electric delivery, and other energy-related services ("Energy Services") be effectuated as provided in the
Joint Powers Association Agreement, a copy of which is attached to and made part of this Ordinance (the
"Joint Powers Agreement"), in accordance with applicable provisions of the Procurement Act, such as the
utilization of competitive principles pursuant to an exemption from the Requirements; and
WHEREAS, the Committee also recommends that the other services provided by the Committee
to its members be effectuated as provided in the Joint Powers Agreement, with such services consisting of
(i) assistance in implementing standard form contracts for the purchase of services from incumbent
electricity utilities, (ii) education of members regarding electricity procurement issues, (iii) monitoring of
legal and regulatory developments affecting the provision of electricity service to local governments, and
(iv) hiring of consultants and legal counsel to assist in provisions of the foregoing services ("Steering
Committee Services"); and
WHEREAS, it appearing to the Council of the Town of Leesburg that the joint procurement of
the Energy Services pursuant to the Joint Powers Agreement and the provision of Steering Committee
Services pursuant to the Joint Powers Agreement is otherwise in the best interests of the Town; and
WHEREAS, the Finance Director recommends approval of the agreement.
THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows:
SECTION I. Competitive sealed bidding and competitive negotiation for the procurement of
Energy Services are not fiscally advantageous to the public because the procurement process for Energy
Services must be flexible enough to respond to quickly changing market conditions in which energy
prices can fluctuate considerably on a daily or even hourly basis.
SECTION II. The aggregation and joint procurement of the Energy Services pursuant to the Joint
Powers Agreement is herby approved.
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AN ORDINANCE: APPROVING A JOINT POWERS ASSOCIATION AGREEMENT
BETWEEN THE TOWN OF LEESBURG, IN VIRGINIA AND THE
VIRGINIA ENERGY PURCHASING GOVERNMENTAL ASSOCIATION
SECTION III. The provision of Steering Committee Services pursuant to the Joint Powers
Agreement is hereby approved.
SECTION IV. The Joint Powers Agreement and the performance of the terms and conditions
thereof on behalf of the Town of Leesburg are hereby authorized and approved.
SECTION V. The Town Manager is hereby authorized and directed to execute and deliver the
Joint Powers Agreement on behalf of the Town in substantially the form presented to this meeting.
SECTION VI. The payment obligations of the Town of Leesburg pursuant to the provisions
hereof and the Joint Powers Agreement shall be subject to annual appropriation of requisite funds
therefore by the Town.
SECTION VII. This ordinance shall be in effect upon its passage.
PASSED this 12th day of March 2002.
ATTEST:
ferk of Council
Town of Leesburg
O:jointpowersagreement