R-20-21RESOLUTION NO.2020-21
Approving the Joint Powers Association Agreement
WHEREAS, the former VMLVACo Virginia Power Steering Committee (the "Committee"),
composed of representatives of local governments and political subdivisions of the
Commonwealth, over several decades negotiated on behalf of 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 seg. 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
Iicensure; 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
WHEREAS, the Committee formerly recommended 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 Resolution (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 formerly recommended 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 its provisions of the foregoing services ("Steering Committee Services")
WHEREAS, it appearing to the Council of the City of Fairfax 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 City of
Fairfax.
NOW, THEREFORE, BE IT HEREBY RESOLVED that:
(1) 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.
(2) The aggregation and joint procurement of the Energy Services pursuant to the
Joint Powers Agreement is hereby approved.
(3) The provision of Steering Committee Services pursuant to the Joint Powers
Agreement is hereby approved.
(4) The Joint Powers Agreement and the performance of the terms and conditions
thereof on behalf of the City of Fairfax are hereby authorized and approved.
(5) The City of Fairfax City Manager is hereby authorized and directed to execute and
deliver the Joint Powers Agreement on behalf of the City of Fairfax in substantially the form
presented to this meeting.
(6) The payment obligations of the City of Fairfax pursuant to the provisions hereof
and the Joint Powers Agreement shall be subject to annual appropriation of requisite funds
therefor by the Council of the City of Fairfax.
(7) This Resolution shall take effect immediately upon its adoption or passage.
Adopted: June 9, 2020
Mayor
ATTEST:
Z
The vote on the motion to approve was recorded as follows:
VOTE:
Councilmember DeMarco
Aye
Councilmember Lim
Aye
Councilmember Miller
Aye
Councilmember Passey
Aye
Councilmember Stehle
Aye
Councilmember Yi
Aye