HomeMy WebLinkAbout13-175 Resolution No. 13-175
RESOLUTION
AUTHORIZING EXECUTION OF AGREEMENT WITH TEXZON UTILITIES
FOR PROFESSIONAL SERVICES IN CONNECTION WITH SOLICITING
QUALIFIED RETAIL ELECTRIC AND NATURAL GAS PROVIDERS
FOR RETAIL ELECTRIC SERVICE AND RETAIL NATURAL GAS SERVICE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,
that Sean R. Stegall, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby
authorized and directed to execute Agreement with Texzon Utilities on behalf of the City of
Elgin for professional services in connection with soliciting qualified retail electric and natural
gas providers for retail electric service and retail natural gas service, a copy of which is attached
hereto and made a part hereof by reference.
s/ David J. Kaptain
David J. Kaptain, Mayor
Presented: October 23, 2013
Adopted: October 23, 2013
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
AGREEMENT
THIS AGREEMENT is made and entered into this_23 day of C<c m er , 2013, by and
between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as
"CITY") and Texzon Utilities, a Tex«.S , L.�. corporation (hereinafter referred to as
"CONSULTANT").
WHEREAS, the CITY desires to engage the CONSULTANT to furnish certain
professional services in connection soliciting qualified retail electric and natural gas providers
to provide retail electric service and retail natural gas service to the City at certain of its select
municipal facilities (hereinafter referred to as the "PROJECT"); and
WHEREAS, the CONSULTANT represents that it is in compliance with Illinois Statutes
relating to the licensure of agents, brokers and consultants engaged in the procurement or sale of
retail electricity supply for third parties and for the services to be provided pursuant to this
Agreement, and has the necessary expertise and experience to furnish such services upon the
terms and conditions set forth herein below.
NOW, THEREFORE, it is hereby agreed by and between the CITY and the
CONSULTANT that the CITY does hereby retain the CONSULTANT for and in consideration
of the mutual promises and covenants contained herein, the sufficiency of which is hereby
acknowledged to perform the services relating to the PROJECT as described herein, terms and
conditions and stipulations:
1. SCOPE OF SERVICES
A. All work hereunder shall be performed under the direction of the City Manager of
the City, or his designee, hereinafter referred to as the "Director".
B. CONSULTANT shall use its best efforts to obtain for CITY a combination of the
lowest price with a provider that will supply CITY with retail natural gas and/or
electricity services with responsive customer service for select municipal
facilities.
C. CONSULTANT shall monitor energy prices daily using market data and
knowledge about the energy market, report prices to CITY on demand.
D. CONSULTANT shall provide reports using retail energy supplier quoted pricing
to forecast the cost of energy over the life of the proposed contract and any
potential savings over the City's current energy costs, those offered by
Commonwealth Edison and Nicor.
E. CONSULTANT shall determine what, if any, account or contract alterations
should be made prior to entering into a new energy contract.
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2. SCHEDULE AND PROGRESS REPORTS
A. The work to be performed by CONSULTANT pursuant to this Agreement will be
completed in a timely manner, consistent with the time line set forth in the
schedule attached hereto as Exhibit A.
B. CONSULTANT shall submit to the DIRECTOR monthly a status report keyed to
the project schedule. A brief narrative will be provided identifying progress,
findings and outstanding issues.
3. WORK PRODUCT
All work product prepared by the CONSULTANT pursuant hereto including, but not
limited to, reports, plans, designs, calculations, work drawings, studies, photographs,
models and recommendations shall be the property of the CITY and shall be delivered to
the CITY upon request of the DIRECTOR; provided, however, that the CONSULTANT
may retain copies of such work product for its records. CONSULTANT's execution of
this Agreement shall constitute CONSULTANT's conveyance and assignment of all
right, title and interest, including but not limited to any copyright interest, by the
CONSULTANT to the CITY of all such work product prepared by the CONSULTANT
pursuant to this Agreement. The CITY shall have the right either on its own or through
such other consultants as determined by the CITY to utilize and/or amend such work
product. Any such amendment to such work product shall be at the sole risk of the
CITY. Such work product is not intended or represented to be suitable for reuse by the
CITY on any extension to the PROJECT or on any other project, and such reuse shall be
at the sole risk of the CITY without liability or legal exposure to the CONSULTANT.
4. PAYMENTS TO THE CONSULTANT
A. The CITY will not pay the CONSULTANT for any work completed as a result of
this Agreement. The compensation to be paid to the CONSULTANT for the
work pursuant to this Agreement will be paid if, and when, the CITY enters into a
contract during the term of this Agreement with a supplier for retail electric
service and/or retail natural gas service and such compensation will be paid to the
CONSULTANT by the provider of such service that is chosen and will be paid
out of the usage charged by the Provider.
B. CONSULTANT shall disclose in plain language in writing to the CITY the total
anticipated remuneration to be paid to it by any third party over the period of the
proposed underlying customer contract(s).
5. TERMINATION OF AGREEMENT
Notwithstanding any other provision hereof, the CITY may terminate this Agreement at
any time upon fifteen (15) days prior written notice to the CONSULTANT. In the event
that this Agreement is so terminated, the CONSULTANT shall be paid for services
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actually performed and reimbursable expenses actually incurred prior to termination,
except that reimbursement shall not exceed the amounts set forth under Paragraph 4
above.
6. TERM
A. This Agreement shall become effective upon entering into and execution of this
Agreement and, unless terminated for cause or pursuant to Paragraph 5, shall be
deemed concluded eighteen months after the effective date. A determination of
completion shall not constitute a waiver of any rights or claims which the CITY may
have or thereafter acquire with respect to any term or provision of this Agreement.
7. NOTICE OF CLAIM
If the CONSULTANT wishes to make a claim for additional compensation as a result of
action taken by the CITY, the CONSULTANT shall.give written notice of his claim
within fifteen (15) days after occurrence of such action. No claim for additional
compensation shall be valid unless so made. Any changes in the CONSULTANT's fee
shall be valid only to the extent that such changes are included in writing signed by the
CITY in the CITY'S sole discretion, and the CONSULTANT. Regardless of the decision
of the DIRECTOR relative to a claim submitted by the CONSULTANT, all work
required under this Agreement as determined by the DIRECTOR shall proceed without
interruption.
8. BREACH OF CONTRACT
If either party violates or breaches any term of this Agreement, such violation or breach
shall be deemed to constitute a default, and the other party has the right to seek such
administrative, contractual or legal remedies as may be suitable to the violation or breach;
and, in addition, if either party, by reason of any default, fails within fifteen (15) days
after notice thereof by the other party to comply with the conditions of the Agreement,
the other party may terminate this Agreement. Notwithstanding the foregoing, or
anything else to the contrary in this Agreement, no action shall be commenced by the
CONSULTANT against the CITY for monetary damages. CONSULTANT hereby
further waives any and all claims or rights to interest on money claimed to be due
pursuant to this Agreement, and waives any and all such rights to interest which it claims
it may otherwise be entitled pursuant to law, including, but not limited to, the Local
Government Prompt Payment Act (50 ILCS 50111, et seq.), as amended, or the Illinois
Interest Act (815 ILCS 205/1, et seq.), as amended. The parties hereto further agree that
any action by the CONSULTANT arising out of this Agreement must be filed within one
year of the date the alleged cause of action arose or the same will be time-barred. The
provisions of this paragraph shall survive any expiration, completion and/or termination
of this Agreement.
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9. INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT agrees to and shall indemnify,
defend and hold harmless the CITY, its officers, employees, agents, boards and
commissions from and against any and all claims, suits,judgments, costs, attorneys fees,
damages or other relief, including, but not limited to, workers' compensation claims, in
any way resulting from or arising out of negligent actions or omissions of the
CONSULTANT in connection herewith, including negligence or omissions of employees
or agents of the CONSULTANT arising out of the performance of this Agreement. In the
event of any action against the CITY, its officers, employees, agents, boards or
commissions, covered by the foregoing duty to indemnify, defend and hold harmless such
action shall be defended by legal counsel of the CITY's choosing. The provisions of this
paragraph shall survive any expiration, completion and/or termination of this Agreement.
10. NO PERSONAL LIABILITY
No official, director, officer, agent or employee of the CITY shall be charged personally
or held contractually liable under any term or provision of this Agreement or because of
their execution, approval or attempted execution of this Agreement.
11. INSURANCE
A. Comprehensive Liability. The CONSULTANT shall provide, pay for and
maintain in effect, during the term of this Agreement, a policy of comprehensive
general liability insurance with limits of at least $1,000,000 aggregate for bodily
injury and $1,000,000 aggregate for property damage.
The CONSULTANT shall deliver to the DIRECTOR a Certificate of Insurance
naming the CITY as additional insured. The policy shall not be modified or
terminated without thirty (30) days prior written notice to the DIRECTOR.
The Certificate of Insurance shall include the contractual obligation assumed by
the CONSULTANT under Paragraph 10 entitled "Indemnification".
This insurance shall be primary and non-contributory to any other insurance or
self-insurance programs afforded to the CITY. There shall be no endorsement or
modification of this insurance to make it excess over other available insurance.
B. Comprehensive Automobile Liability. Comprehensive Automobile Liability
Insurance covering all owned, non-owned and hired motor vehicles with limits of
not less than $500,000 per occurrence for bodily injury and/or property damage.
C. Combined Single Limit Policy. The requirements for insurance coverage for the
general liability and auto exposures may be met with a combined single limit of
$1,000,000 per occurrence subject to a $1,000,000 aggregate.
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D. ofessional Liability. The CONSULTANT shall carry C ANT's
Profess' Liability Insurance covering cla' u tmg from error, omissions
or negligent ac a combined e limit of not less than $1,000,000 per
claim. A Certificate of be submitted to the DIRECTOR as
evidence o l no rance protection. The policy sha inated
out thirty (30) days prior written notice to the DIRECTOR.
12. INTENTIONALLY OMITTED.
13. NONDISCRIMINATION
In all hiring or employment made possible or resulting from this Agreement, there shall
be no discrimination against any employee or applicant for employment because of sex,
age, race, color, creed, national origin, marital status, of the presence of any sensory,
mental or physical handicap, unless based upon a bona fide occupational qualification,
and this requirement shall apply to, but not be limited to, the following: employment
advertising, layoff or termination, rates of pay or other forms of compensation and
selection for training, including apprenticeship.
No person shall be denied or subjected to discrimination in receipt of the benefit of any
services or activities made possible by or resulting from this Agreement on the grounds
of sex, race, color, creed, national origin, age except minimum age and retirement
provisions, marital status or the presence of any sensory, mental or physical handicap.
Any violation of this provision shall be considered a violation of a material provision of
this Agreement and shall be grounds for cancellation, termination or suspension, in whole
or in part, of the Agreement by the CITY.
14. ASSIGNMENT AND SUCCESSORS
This Agreement and each and every portion thereof shall be binding upon the successors
and the assigns of the parties hereto; provided, however, that no assignment shall be
made without the prior written consent of the CITY.
15. DELEGATIONS AND SUBCONTRACTORS
Any assignment, delegation or subcontracting shall be subject to all the terms, conditions
and other provisions of this Agreement and the CONSULTANT shall remain liable to the
CITY with respect to each and every item, condition and other provision hereof to the
same extent that the CONSULTANT would have been obligated if it had done the work
itself and no assignment, delegation or subcontract had been made. Any proposed
subcontractor shall require the CITY's advanced written approval.
16. NO CO-PARTNERSHIP OR AGENCY
This Agreement shall not be construed so as to create a partnership, joint venture,
employment or other agency relationship between the parties hereto.
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17. SEVERABILITY
The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or
other provision of this Agreement, or any portion thereof, shall be held to be void or
otherwise unenforceable, all other portions of this Agreement shall remain in full force
and effect.
18. HEADINGS
The headings of the several paragraphs of this Agreement are inserted only as a matter of
convenience and for reference and in no way are they intended to define, limit or describe
the scope of intent of any provision of this Agreement, nor shall they be construed to
affect in any manner the terms and provisions hereof or the interpretation or construction
thereof.
19. MODIFICATION OR AMENDMENT
This Agreement and its attachments constitutes the entire Agreement of the parties on the
subject matter hereof and may not be changed, modified, discharged or extended except
by written amendment duly executed by the parties. Each party agrees that no
representations or warranties shall be binding upon the other party unless expressed in
writing herein or in a duly executed amendment hereof, or change order as herein
provided.
20. APPLICABLE LAW
This Agreement shall be deemed to have been made in, and shall be construed in
accordance with the laws of the State of Illinois. Venue for the resolution of any disputes
or the enforcement of any rights pursuant to this Agreement shall be in the Circuit Court
of Kane County, Illinois.
21. NEWS RELEASES
The CONSULTANT may not issue any news releases without prior approval from the
DIRECTOR, nor will the CONSULTANT make public proposals developed under this
Agreement without prior written approval from the DIRECTOR prior to said
documentation becoming matters of public record.
22. COOPERATION WITH OTHER CONSULTANTS
The CONSULTANT shall cooperate with any other consultants in the CITY'S employ or
any work associated with the PROJECT.
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23. INTERFERENCE WITH PUBLIC CONTRACTING
The CONSULTANT certifies hereby that it is not barred from bidding on this contract as
a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute
regarding bid rigging.
24. SEXUAL HARASSMENT
As a condition of this contract, the CONSULTANT shall have written sexual harassment
policies that include, at a minimum, the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
D. the vendor's internal complaint process including penalties;
E. the legal recourse, investigative and complaint process available through the
Illinois Department of Human Rights, and the Illinois Human Rights
Commission;
F. directions on how to contact the department and commission;
G. protection against retaliation as provided by Section 6-101 of-the Human Rights
Act.
A copy of the policies shall be provided by CONSULTANT to the Department of Human
Rights upon request 775 ILCS 5/2-105.
25. SUBSTANCE ABUSE PROGRAM.
As a condition of this agreement, CONSULTANT shall have in place a written substance
abuse prevention program which meets or exceeds the program requirements in the
Substance Abuse Prevention Public Works Project Act at 820 ILCS 265/1 et seq. A copy
of such policy shall be provided to the City's Assistant City Manager prior to the entry
into and execution of this agreement.
26. WRITTEN COMMUNICATIONS
All recommendations and other communications by the CONSULTANT to the
DIRECTOR and to other participants which may affect cost or time of completion, shall
be made or confirmed in writing. The DIRECTOR may also require other
recommendations and communications by the CONSULTANT be made or confirmed in
writing.
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27. NOTICES
All notices, reports and documents required under this Agreement shall be in writing and
shall be mailed by First Class Mail, postage prepaid, addressed as follows:
A. As to the CITY:
City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
B. As to the CONSULTANT:
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28. COMPLIANCE WITH LAWS
Notwithstanding any other provision of this AGREEMENT it is expressly agreed and
understood that in connection with the performance of this AGREEMENT that the
CONSULTANT shall comply with all applicable federal, state, city and other
requirements of law, including, but not limited to, the licensure of agents, brokers; and
consultants engaged in the procurement of sale of retail electricity supply for third parties
at 220 ILCS 5/16-115C, and any applicable requirements regarding prevailing wages,
minimum wage, workplace safety and legal status of employees. Without limiting the
foregoing, CONSULTANT hereby certifies, represents and warrants to the CITY that all
CONSULTANT's employees and/or agents who will be providing products and/or
services with respect to this AGREEMENT shall be legal residents of the United States.
CONSULTANT shall also at its expense secure all permits and licenses, pay all charges
and fees and give all notices necessary and incident to the due and lawful prosecution of
the work, and/or the products and/or services to be provided for in this AGREEMENT.
The CITY shall have the right to audit any records in the possession or control of the
CONSULTANT to determine CONSULTANT's compliance with the provisions of this
paragraph. In the event the CITY proceeds with such an audit the CONSULTANT shall
make available to the CITY the CONSULTANT's relevant records at no cost to the
CITY. CONSULTANT shall pay any and all costs associated with any such audit.
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IN WITNESS WHEREOF, the parties hereto have entered into and executed this
agreement effective as of the date and year first written above.
CITY OF ELGIN:
By: �� �yk�'� �� 7
Sean Stegall, City DOanager
Attte/est:
v �� 4e,&Z
City Clerk
CONSULTANT:
Texzo n Q -�-, 1: A- eS
By: "
Name/Print: S�eV y�l+ ` S 0
Title: n gt
(:\legal dept\agreement\texzon utilities-clean-7-29-13.docx
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Attachment A-Timeline for Scope of Services:
August 14, 2013 - Project Begins
August 14, 2013 - through such a time when the city chooses to enter into a
contract for electricity,natural gas or both with a retail energy supplier.
A. CONSULTANT shall monitor energy prices daily using
market data and knowledge about the energy market, report
prices to CITY on demand.
B. CONSULTANT shall provide reports using retail energy
supplier quoted pricing to forecast the cost of energy over the
life of the.proposed contract and any potential savings over
the City's current energy costs, those offered by
Commonwealth Edison and Nicor.
C. CONSULTANT shall determine what, if any, account or
contract alterations should be made prior to entering into a
new energy contract.
From a time once a new contract has been entered into until such time that
contract expires
A. CONSULTANT shall provide on-going customer service to
CITY (i.e. Continue to serve as a facilitator between CITY
and selected retail energy supplier for the duration of the
retail energy supplier contract term.)
February 14, 2015 -Contract with Texzon Utilities expires
TEXZOM UTILITIES CORPORATE POLICY ON DRUG AND
ALCOHOL ABUSE
Statement of Need
Texzon Utilities (Texzon) has a strong commitment to the health, safety and welfare of its
employees, their families and its customers. Widely available statistics and information
establish that the incidence of drug and alcohol abuse is increasing and that the effect is
devastating to lives, business and the community at large. Texzon is concerned because of the
potential for abuse among some of our employees. The safety of our employees and the
general public could be endangered. Our commitment to maintaining a safe and secure
workplace requires a clear policy and supportive programs relating to the detection, treatment
and prevention of substance abuse by employees.
Goal
It is the goal of Texzon to provide a safe workplace by eliminating the hazards to health and
job safety created by alcohol and other drug abuse. We believe this goal to be in the best
interest of our employees and our stockholders.
Scope
This policy applies to all employees of the company while on the job and to situations where
an employee's off-the-job or off-premises conduct impairs work performance or undermines
public confidence in or harms the reputation of Texzon. It is also intended to apply to
employees of firms doing business with the company while on our premises.
Although Texzon has no intention of intruding into the private lives of its employees, we
recognize that involvement with alcohol or other drugs off the job eventually takes its toll on
job performance. Our concern is to ensure that employees report to work in a condition to
perform their duties safely and efficiently in the interest of their fellow workers and customers
as well as themselves.
Policy Statement
1. Texzon will not tolerate or condone substance abuse. It is our policy to maintain a
workplace free from alcohol and other drug abuse and its effects.
2. It is the policy of Texzon that employees who engage in the sale, use, possession or
transfer of illegal drugs or controlled substances, or who offer to buy or sell such
substances; the use of alcohol during working hours; or the abuse of prescribed drugs
will be subject to disciplinary action up to and including termination.
3. It is the policy of Texzon to commit the resources necessary to achieve and maintain a
drug-free and alcohol-free environment.
Texzon expects the full support of this policy by all employees and all persons doing business
with the company.
Procedure
To provide a safe drug-free and alcohol-free working environment, Texzon will:
1. Establish definitive rules and regulations.
2. Provide increased awareness through training, education and communication on the
subject of alcohol and other drug abuse.
3. Recognize that there may be employees who have an alcohol or other drug problem
and stand willing to assist in the resolution of that problem by encouraging employees
to seek help through employee assistance programs.
In addition, Texzon may take any or all of the following actions:
1. Conduct alcohol and other drug screen tests both prospective to and during
employment.
2. Inspect persons and their property in our employ or doing business with Texzon.
3. Cooperate with outside law enforcement agencies.
4. Take any other actions deemed necessary and appropriate by Texzon.
Company Responsibility
As a responsible employer and member of the community Texzon will:
1. Create an awareness in employees and their families of the impact of substance
abuse.
2. Administer programs that consider employee rights, are positive in their intent and are
within legal boundaries.
3. Support the establishment of programs to assist employees with alcohol and other
drug abuse or dependency problems.
4. Utilize all channels and resources available to it to educate and increase the awareness
of employees and the general public.
5. Support local and national efforts to combat alcohol and other drug abuse and its
effects.
Employee Responsibility
Texzon believes that each employee has the responsibility to:
1. Report to work at all times free of alcohol or other drugs and their effects.
2. Participate in and support company-sponsored drug and alcohol education programs.
3. Seek and accept assistance for alcohol and other drug-abuse-related problems before
job performance is affected.
4. Support company efforts to eliminate alcohol and other drug abuse among employees
where it exists.
Implementation
Each division, subsidiary or affiliate of Texzon will be responsible for procedures, specific to its
needs, in support of this policy. Each of these policies is subject to central review for
consistency with Texzon policy, and will include the following minimum requirements:
1. No employee may use, possess, distribute, deliver, or be under the influence of a
drug, or use or be under the influence of alcohol, while performing work for Texzon.
An employee is considered to be under the influence of alcohol for the purposes of this
policy if the alcohol concentration in his or her blood or breath at the time alleged as
shown by analysis of the employee's blood or breath is at or above 0.02.
This testing will be administered by a laboratory of Texzon's choosing that is certified
for Federal Workplace Drug Testing Programs by the Substance Abuse and Mental
Health Service Administration of the US Department of Health and Human services.
This testing may be a minimum of 9 panel urine drug test and a test for alcohol, or a
blood test, as Texzon deems necessary to meet the requirements of this policy.
2. Texzon will require that employees who perform work on public works projects submit
to pre-hire, random, reasonable suspicion, and post-accident drug and alcohol testing.
3. Texzon employees who violate our drug and alcohol policy will be notified immediately
by their supervisors and given written instructions on how and where to report for
testing.
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4. An employee whose supervisor has reasonable suspicion to believe the employee
is under the influence of alcohol or a drug is subject to discipline up to and
including suspension, and is required to undergo an alcohol or drug test. Texzon
will provide transportation for the employee to the testing facility and may send a
representative to accompany the employee to the testing facility. Under no
circumstances may an employee thought to be under the influence of alcohol or a
drug be allowed to operate a vehicle or other equipment for any purpose.
5. Texzon considers a violation of this policy to be a serious health and safety
matter. If the employee refuses to be tested, or if the test results returned show
positive, the employee will be barred from work at any public works project and
may be terminated by Texzon.