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Home My WebLink AboutOrdinances - ORD-13-1628 - 05/20/2013 - AUTHORIZE EXECUTION OF NIGEC 2013 INTERGOVERNMENTADerik Morefteld City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@ci.mchenry.il.us w�.ci.mchenry.il.us ORDINANCE NO. ORD-13-1628 AN ORDINANCE AUTHORIZING THE EXECUTION OF NORTHERN ILLINOIS GOVERNMENTAL ENERGY COOPERATIVE (-NIGEC") 2013 INTERGOVERNMENTAL AGREEMENT FOR THE PURCHASE OF ELECTRICITY AND OTHER GOODS AND SERVICES WHEREAS, in the fall of 2006 and in 2008 several governmental entities ("Municipalities") entered into an intergovernmental agreement for the purchase of electrical power creating the Northern Illinois Governmental Energy Cooperative ("NIGEC"); and WHEREAS, by working through NIGEC the Members were able to secure competitively priced electric power at a rate dramatically lower than the rate that was to be provided by Commonwealth Edison; and WHEREAS, the NIGEC Members have agreed there may be economies of scale, reduced administrative costs and improved commodity prices by purchasing electricity or other power supplies, and other goods and services as a group; and WHEREAS, in order to obtain these economies, several municipalities have previously joined together as NIGEC and several of those municipalities wish to continue that association; and WHEREAS, such cooperation if one of the purposes of the Intergovernmental Cooperation Agreement Act ("Act") (5 ILCS 220/1 et. seq.); and WHEREAS, this Agreement satisfies the requirements of that Act and of the Illinois State Constitution provisions authorizing Intergovernmental Agreements (Article 7, Section 10). NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: That the Mayor be, and is hereby authorized and directed to execute, and the City Clerk is authorized and directed to attest, duplicate original copies of the Intergovernmental Agreement, a copy of which is attached hereto and made a part hereof as Exhibit A. SECTION 2: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. Derik Morefield City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@ci.mehenry.it.us www.ci.mchenry.il.us SECTION 3: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 4: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. PASSED THIS 20TH DAY OF MAY, 2013 AYES: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon NAYS: None ABSTAINED: None ABSENT: None NOTVOTING: None APPROVED THIS 20TH DAY OF MAY, 2013 MAYOR ATTEST: CITY CLrK Derik Morefield City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@ci.mchenry.iLus www.ci.mchenry.il.us Exhibit "All Northern Illinois Governmental Energy Cooperative ("NIGEC") 2013 Intergovernmental Agreement for the Purchase of Electricity and other Goods and Services EXECUTION COPY NORTHERN ILLINOIS GOVERNMENTAL ENERGY COOPERATIVE ("NIGECIt) 2013 INTERGOVERNMENTAL AGREEMENT FOR THE PURCHASE OF ELECTRICITY AND OTHER GOODS AND SERVICES This Intergovernmental Agreement ("Agreement") is entered into between the signatory parties below, all Illinois municipal corporations or other governmental entities, (collectively, "Members"). It is explicitly contemplated that additional local governmental entities inayjoin this Agreement at a later date on the same terms as the signatory parties, with the permission of the Administrator, as defined below, and without additional approval from the original contracting Members. This Agreement shall be binding on any signatories. WHEREAS, the Members have agreed that there may be economies of scale, reduced administrative costs and improved commodity prices by purchasing electricity or other power supplies, and other goods and services as a group; and WHEREAS, in order to obtain these economies, several municipalities have previously joined together to create the Northern Illinois Governmental Energy Cooperative ("NIGEC") and several of those municipalities wish to continue that association; and WHEREAS, such cooperation is one of the purposes of the Intergovernmental Cooperation Agreement Act ("Act") (5 ILCS 220/1 et seq.); and WIlEREAS, this Agreement satisfies the requirements of that Act and of the Illinois State Constitution provisions authorizing Intergovernmental Agreements (Article 7, Section 10). NOW, THEREFORE, the Members agree as follbws: I . PURPOSE. To act together as the Northern Illinois Governmental Energy Cooperative ("NIGEC") in order to negotiate economical power purchase agreements ("Power Agreements") and to purchase other goods and services as directed by the Governing Board (as that terni is defined below). Page 1 of 7 EXECUTION COPY 2. GOVERNANCE. The NIGEC membership shall be governed by one representative of each Member (the "Governing Board"). Each Member shall have one vote, and unless otherwise specifically provided for elsewhere in this Agreement the Governing Board shall require a majority vote for any binding decisions. 3. ADMINISTRAUON. A. The NIGEC membership agrees to place administrative responsibility for its operations, including approval of any new members, with the Director of the McHenry County Council of Governments ("MCCG") (the "Administrator"), who win report to tile Governing Board on administrative matters. By a majority vote, the NIGEC GovemiDg Board shall agree upon an appropriate level of compensation to MCCG (or any subsequent Administrator) for these administrative services. vote. B. The Governing Board may elect a new Administrator at any time by a majority 4. NEGOTIATING AND SELECTING POWER AGREEMENTS. - A. (1) Electric Power Agreements may be negotiated by NIGEC for the entire membership collectively (or for an authorized subset) as provided in this Section or for a subset of the Membership. In the discretion of the Administrator, bidding may exclude accounts that are not likely to offer significant financial advantages over Commonwealth Edison rates or other existing or potential rates, including, but not limited to, street lights and any franchise accounts. (2) Before agreeing to enter into a Power Agreement, each affected Member shall be given one vote for purposes of determining whether to enter into that Power Agreement. (3) A majority vote of the affected Members shall be required to authorize entry into such Power Agreement. (4) All affected Members agree to be bound by a majority vote of the affected Members in favor of entering into a specific Power Agreement. B. Following majority approval as described in this Section, the Administrator may Page 2 of 7 EXECUTION COPY verbally commit NIGEC members to accept a Power Agreement, and each NIGEC Member agrees to execute a Power Agreement binding their respective unit of government within the first business day after such affirmative vote or verbal approval is obtained or within such other time period approved by the Administrator. The Members acknowledge that the rapidly shifling commodity price nature of the power market necessitates this structure, and that by approving this Agreement, they are authorizing any of the following representatives of the Members to execute these agreements: i. President or Mayor ii. Board Member or Council Members designated by the President or Mayor iii. Manager or Chief Administrator iv. Authorized Staff Person designated by Manager or Chief Administrator 5. USE OF CONSULTANTS BY NIGEC. By a majority vote of the membership, NIGEC, through the Administrator, may negotiate with and retain a consultant or advisor who may coordinate the purchasing process on behalf of NIGEC and its Members. The process for selecting a consultant shall be conducted in accordance with the Illinois Governmental Joint Purchasing Act, 30 ILCS 525/1 et. seq. Any agreement between NIGEC and any such consultant must be approved by a majority vote of the Governing Board. 6. OTHER NIGEC GROUP PURCHASES AUTHORIZED. By a majority vote of the membership, NIGEC may apply the same process outlined in this Agreement to the purchase of other goods and services. However, each Member may choose (prior to the issuance of any bid requests or other solicitations for purchase) not to participate in such additional purchasing in a manner consistent with the procedures outlined in Section 13 of this Agreement. .1 7. PURCHASING GUIDELINES. The Parties agree that purchase of power or other goods and services under this Agreement shall be conducted in accordance with tile Illinois Governmental Joint Purchasing Act, 30 ILCS 525/1 et. seq. The Parties agree that their published solicitations for power or other goods and services may provide that purchase agreements may be extended without additional sol icitation if by a majority vote the Members agree that the proposed rate for such extension with the existing provider is in their best interests. Page 3 of 7 EXECUTION COPY 8. COOPERATION REQUIRED. The NIGEC membership agrees to provide the necessary information required to develop bid specifications or to otherwise identify electric power supply opportunities or goods and services in a timely maimer in response to any request being made by the Administrator or Consultant. Failure to provide this information in a timely manner may result in exclusion from a particular purchase agreement or bid for such purchase agreement at the discretion of the Administrator. 9. ALLOCATION OF NIGEC COSTS. The NIGEC membership agrees to share all costs associated with the Administration of this Agreement, which costs shall be allocated among them based on the number of Members participating in a specific matter. 10. LEGAL REPRESENTATION. By executing this Agreement, each Member hereby waives any conflict of interesL peralitting the law firm of Zukowski, Rogers, Flood & McArdle ("ZRFM") to represent them individually as well as serving as counsel to NIGEC. This representation may be changed by a majority vote of the Governing Board. 11. AGREEME NT RE' PLACES EARLIER NIGEC AGREEMENTS. By executing this Agreement, a Member that belonged to any previous Agreement governing NIGEC agrees, instead, to be bound by the terms of this Agreement. 12. TERM. The Members agree to be bound by this Intergovernmental Agreement through January 3 0, 2020 regardless of the date any individual Member initially approved the Agreement. 13. WITHDRAWAL. A. Any Member may withdraw from participation in any specific bid solicitation or purchasing effort at any time by giving hve (5) days' written notice to the Administrator, provided that no solicitation is outstanding at the time of such notice or that no bids have been received and are being considered or negotiated by NIGEC. B. If a Member has not provided notice as described in this Section, then the Member must complete and execute any agreement for power or other goods or services purchase Page 4 of 7 EXECUTION COPY approved by the Governing Board resulting fi-om any outstanding bid or ongoing negotiation unless, in the determination of the Administrator, such withdrawal will not affect the price offered to the balance of the NIGEC membership. C. This limitation on withdrawal is imposed in order to ensure that the NIGEC membership, as a whole, benefits from. any bulk purchasing advantages resulting from guaranteeing to power supply (or other) bidders a defined customer base because this has an impact on the bid prices for such power (or other supplies). 14. VOTING METHODS. All votes may be taken by telephone, e-mail or other electronic or digital communication. 15- IINDEMNOICATION. A. Each Member hereby agrees to indemnify, hold harmless, and defend any other Member from and against any and all losses, claims, expenses and damages (including reasonable attorney's fees) made against or incurred by the other Member for any actions taken or failures to act by the indemnifying Member in connection with or arising out of this Agreement, to the extent that such claims were caused by actions, or failures to act, of the indemnifying Member. B. Each Member agrees to indemnify, hold harmless, and defend MCCG (or any subsequent Administrator) and any of its officers, employees or agents from and against any and all losses, claims, expenses and damages (including reasonable attorneys' fees) made against or incurred by the Administrator or any of the Administrator's officers, employees and agents for actions taken or failures to act under this Agreement in its role as Administrator except to the extent such actions or failures to act were willful and wanton. 16, COUNTERPARTS. This Agreement may be executed by all of the parties in identical original duplicates and each of the duplicates shall, individually and taken together, constitute one and the same Agreement. [SIGNATURE PAGES FOLLOW] Page 5 of 7 EXECUTION COPY V E 11 A 0 U AMST� By /'/L — 'Sident J Schn� Vr' Gerald S. Kautz, Clerk DATE: 2013 CrrY OF GENOA ATTEST: By Todd A. Walker, Mayor Wendy Shaneen, Clerk DATE; 2013 VILLAGE OF HAWSHM ATTEST: BY — Jeffrey Magnussm, President Linda R. Vasquez, CletIc DATE: 2013 VILLAGE OF R"TLEY ATTEST: By — Charles Sass, President Rita McMabon, Clerk DATE-.--- '2013 VILLAGE OF JOffNSBURG ATTEST: BY — Edwin P. Rettenuann,.President Claudett B. Peters, Clork DATE- 12013 VILLAGE OF LAKE IN TIM RUIZ ATTEST: BY. Ildwin Plaza DeniscL. Wasserman, Clerk DATE:— '2013 Page 6 of 7 I VILLAGE IJohn C. Schmi% President DATE: 13 Gerald S. Kautz, CITY OF OA ATTES ,Mayor P 1\0 Wendy Shanr er call hwy-j,) DATE: 2(X3 VILLAGE OF HAMPSMRE ATTEST: Jeffrey Magnusson, President Linda R. Vasque4 Clerk 2013 I VILLAGE OF HUNTLEY Charles Sass, President DATE;- '2013 VILLAGE OF JOHNSBURG By Edwin P. Hettermann, President DATE: 12013 VILLAGE OF LAKE IN rflE HILLS Edwin Plaza DATE: 12013 ATTEST: McMahon, Clerk ATTEST: Claudett E. Peters, ATTEST: Denise L. Wassumau, Clerk Page 6 of 7 EXECU'nON COPY EXECUTION COPY VILLAGE OF ALGONQUIN ATTEST. By. John C. SchwA President Gerald S. Kautz, Clerk DATE-.- 2013 CITY OF GENOA ATTEST: Todd A. Walker, Mayor Wendy Shaneen, Clerk DATE-- 12013 VILLAGE OF HAMPSHIRE ATT ST: jp 13Y S *gff4y Magnissen, President Emda R- Vasque&�-CIPAQ L DATE: Q 2013 .............. VILLAGE OP HUNTLEY ATTEST: By Charles Sass, President Rita McMahon, Clerk DATE: 12013 VILLAGE OF JOHNSBURG ATTEST: B Edwin P. Hettermann, President Claudeft E. Peters, Clerk DATE: 12013 VILLAGE OF LAKE IN THE HILLS ATrEST: By Edwin Plaza Denbo L. Wasserman, Clerk DATE. 12013 Page 6 of 7 EXECUTION COPY VILLAGE OF ALGOWQIUIN ATTEST: By - John C. Schraiit, President Gerald S. Kaut4 Clerk DATE; 2013 CITY OF GENOA ATTEST; T.odd A. Walker, Mayor Wendy Shama, Clerk DATE: 2013 VlLLAGB0FHAMPSff= ATTEST: By Jeffrey Magnusson, President Linda R- Vasquez, Clerk DATE: .2013 G E&I / T; 0 ::k I ?R Aka' /4� y Alta momalkon, cleck cm t bar Sav, Pmidc,; / DATE, 2013 VILLAGE OF JOMS13URG ATTEST - By_ Edwin P. Hettemana, President Claudett R, Peters, Clerk DATE, 2013 VILLAGE. OF LARE INTHE RMS ATTEST: By Edwin Plaza Denise L� Wassennan, Clerk DATE: 2013 Pago 6 of 7 E(EWTION COPY VILUGEOVALGONQUX AT—MsT, BY John C. Schmitt, President Gerald S. Kaut7, Clark DATE: 2013 CITY OF GENOA ATTEST: By_ Todd A. Walkw, Mayor Wendy Shimem, Clark DATH: 1.2013 VILLAGE OF HAIPSIM ATTEST: By Jeffiey Magnus=4 President Linda R: Vasque7, Clark. bA7R: — 2013 VILLA(MornUNTLEY ATIEST; p, aiaries Sass, President Tits. McWla�on, Clark DAM 2 013 E VILLAQ13 OHNSBURG ATMST- By' Edwin P. Hettermann, President claudett a paters, Cla 2013 VILLAGE OF LAKE IN THE HELS ATTFST: B Edwhi Plaza Denise L. Wasserman, Ci ak DATE; 2013 EXECUTION COPY VILLAGE OF ALGONQTJIN ATTEST!. By John C. Sclunitt, President Gerald S. Kautz, Clerk DATE: 12013 CITY OF GENOA ATTEST: By Tudd. A. Walker, Mayor Wendy Shaneen, Clerk DATE: 2013 VILLAGE OF HAAVSH[RE ATTEST: By_ Jeffiuy Magnussen, President Linda R. Vasquez, Clerk DATE: 12013 VILLAGE OF HUNTLEY ATTEST: BY Charles Sass, President Rita McMahon, Clerk DATE: 12013 VILLAGE OF JOHNSBURG ATTEST: BY Edwin P. Hettermann, President Claudett E. Peters, Clerk DATE: 12013 VILLAGE OF LAKE IN ATTEST; By DeDiseL.W—asdiman, Clerk Edwin laza. DATE: lr-� /*2013 Page 6 of 7 EXE-CUTION COPY VILLAGE Or LAKEWOOD T; Inv I I if- 91 Mary President Tan�lce S. 1plllr,�- DATE: 2013 OF McBENRY ATTEST: By, Susan E. Low, President h-nice C. Jones, Clerk DATE: 2013 VILLAGE OF RICHMOND ATIEST: By, Peter Koci2i& Presidmit Karla Thomas, Clerk DA,TF: 2013 CFFY OF WOODSTOCK ATrEST.- BY Brian Sager, PhD, Mayar Dianne Mitchell, Clerk DATB: 2013 WOODSTOCKFIRE AND RESCUE DISTRICT ATTEST: By. Robert XTistmisen, President KeunethMBrmde, Secretary DATE: 12013 Z-VVWWCTZ,,hq, =pydw Page 7 of 7 EXECUTION COPY I -.. -.. — - - . . ... . ...... ....... ...... VILLAGE OF LAKHWOOD A-IJEST: BY. Mmy B-In Smith, 1?mident Tau'= S. Mnsen, Cluk DATE; .2013 CITY OF VoBR41CY 13Y e �4� ATIRST: P �A�psj ,8�u E. Low, President ena, C11) DATE: 9-1y4o 2013 VRLAGP OF RICHMOND ATTEST: BY. FetarKocnig,President Karla Thonm, Clerk DATE: 2GI3 CITY OF WOODSTOCK ATTEST: BY- 134an SaM PhD, M&yQr Diame Mitchell, Clerk DATE: 12013 WOODSTOCK PME AND RESCUE DISTRICT ATTEST; 13Y 7 - — - RoberrKiistensen, President Kenneth Marunde, Secretary DATE. 12013 7-WW1UNCWmfrfo VfijtoA9dW9131GA tpdxkVGAm=#on oq"� Pop7of7 EXECUTION COPY VILLAGE OF LAKEWOOD ATTEST: By Mary Erin Smith, President Janice S. Hanson, Clerk DATE: 12013 CITY OF McIIENRY ATTEST: By Susan E. Low, President Janice C. Jones, Clerk DATE: 2013 VILLAGE QF RICHMOND ATTEST: B Peter Koenig, President Kali Thomas, Clerk DATE: 2013 CITY OF WOODSTOCK ATTEST: Brian Sager, PhD, Mayor Dianne Mitchell, Clerk DATE: 12013 WOODSTOCK FIRE AND RESCUE DISTRICT ATTEST: B Robert Kristensen, President Kenneth Marunde, Secretary DATE: 12013 ZVVW7GEC'W?ectnc bbhtykddiW�2013 IGA upl�UCA."ezuffon copy. doc, Page 7 of 7 Mary rtrin Smith, President DAT 2: ,2013 CITY OF MCITENRY Dv -- S�19—anp. 2013 VILLAOL OF RICJiNACYND Peter Koenig, President DATE: .2013 CIT-YOF% (IDS CK lavor kyor 2013 WOODS'FOC'kl-'IRPA14T)'RT!",SCtJL71)ISTRI(,T By — Robert Kristemen, DiVf2: .2011 EXECUTION COPY jamm S, Hansen, A'I'TBST� AI-FLST: Karla Thomas, Cleflic A'fTrS'F: bi m; 11 11 C, erk A'FrEST: R,c`nnct-hm—amnd-e-, -Se`c-r�'.,-ta-r—y-- Pa.-e 7 of 7 EXECUTION COPY VILLAGE Or LAKEWOOD ATTEST: By Mary Erin Smith, President Janice S. Hansen, Clerk DATE: 12013 CITY OF McHENRY ATTEST: B Susan E. Low, President Janice C. Joues� Clerk DATE: 12013 VILLAGE OF RICHMOND ATTEST: By Peter Koeni& President Karla Thomas, Clerk DATE: 12013 C= OF WOODSTOCK ATTEST: Brian Sager, PhD, Mayor Dianne Mitchell, Clerk DATE: 12013 WOODSTOCK FIRB AND RESCUE DISTRICT ATTEST: By 'fe—nneth Marunde, Secretary DATE: 12013 7--WWjG=1=hdc Utility BiddrngI2013 IGA ipddfeV(7,4.�tfm wpydx Page 7 of 7