Title
Membership Agreement with Colectric Partner's Inc. (NB)
Explanation
JEA (formerly Jacksonville Electric Authority), the Municipal Electric Authority of Georgia (MEAG), Nebraska Public Power District (NPPD), and South Carolina Public Service Authority (Santee Cooper) have formed a Georgia, not-for-profit corporation known as Colectric Partners, Inc., (Colectric) with its principal offices in Jacksonville, Florida. The primary purposes of Colectric, whose membership is restricted to governmental instrumentalities which are either political subdivisions or electric utilities as provided under Section 115, Internal Revenue Code of 1986, are to share resources such as personnel, information and equipment, and provide for the procurement of resources on behalf of some or all of the members in order to effect substantial cost savings in the generation and delivery of their respective electric energy services. The City's membership will be as an associate non-equity member and is expected to result in numerous cost saving opportunities.
The present members of Colectric: JEA, NPPD, MEAG and Santee Cooper are also members of The Energy Authority (TEA), of which the City is also a member and which has been very successful in acquisition and sale of energy on behalf of the City and other TEA members.
Recommendations
The City Commission authorize the General Manager to negotiate and execute such agreements and ancillary documents as may be necessary for the City to become a member of Colectric Partners, Inc., a not-for-profit corporation, and to take such further actions in the future as may be required to comply with its membership obligations, subject to the approval of the City Attorney as to form and legality.
Fiscal Note
Funds are available for the first year's membership fee of $65,000 which will be prorated for 2005 dependent on the date of approval by the City Commission. The membership fee paid each year will be recouped by the savings that will be achieved through the various initiatives.
Drafter
Prepared by Raymond O. Manasco, Jr.
Submitted by Michael L. Kurtz