TITLE
Recommendation to authorize City Manager to terminate the existing Energy Master Purchase/Sale and Services Agreement with Coral Energy Resources, L.P. and to execute and enter into: (A) a Gas Services Agreement with Coral Energy Resources, L.P., for a term not to exceed 20 months, or on such terms as the City Manager may deem appropriate; (B) an ISDA (International Swaps and Derivatives Association) Master Agreement together with the U.S. Municipal Counter Party Schedule and Credit Support Annex thereto, each on such terms as the City Manager may deem appropriate and Confirmations under the Master Agreement for a Fixed-float Swap transaction, a Call Option transaction, and a Put Option transaction each on such terms as the City Manager may deem appropriate; and (C) NAESB (North American Energy Standards Board) Contract on such terms and enter into such transactions under the NAESB as the City Manager may deem appropriate. (Citywide)
DISCUSSION
On August 21, 2007, the City Council authorized the City Manager to enter into a Gas Services Agreement with Coral Energy Resources, L.P., for a term not to exceed 20 months, terminate the existing Energy Master Purchase/Sale and Services Agreement with Coral Energy Resources, L.P., execute an ISDA (International Swaps and Derivatives Association) Master Agreement, and execute a NAESB (North American Energy Standards Board) Contract.
Outside counsel for Coral Energy Resources, L.P., is requesting clarification of the August 21, 2007, approval through confirmation of the documents and terms as specified in the recommendation and a second City Council approval and authorization.
This matter was reviewed by Deputy City Attorney Richard Anthony and Budget and Performance Management Bureau Manager David Wodynski on September 24,2007.
TIMING CONSIDERATIONS
City Council action is requested on October 2, 2007. LBGO purchases approximately $75 million of natural gas commodity on behalf of its customers annually. It i...
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