2575 ORDINANCE NO. S
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO ENTER INTO AN AGREEMENT FOR THE PURCHASE AND
SALE OF SOLAR ENERGY,CAPACITY,AND ANCILLARY SERVICES FOR
THE CITY OF WEST MEMPHIS,DECLARING AN EMERGENCY,AND FOR
OTHER PURPOSES.
WHEREAS, on or about the 21" day of May of 2020, the City Council of the City of West
Memphis ("City")adopted Ordinance No. 2549 approving a power supply agreement that provides for the
delivery of energy and ancillary services beginning June 1,2021 and ending May 31. 2026; and
WHEREAS,the West Memphis Utility Commission(WMUC)has continued to diligently plan for
energy,capacity and ancillary services to be delivered after May 31,2026; and
WHEREAS, WMUC has negotiated in good faith to purchase energy, capacity, and ancillary
services from a nearby solar project that is under development, with delivery to coincide with the
termination of the power supply agreement approved under Ordinance No. 2549; and
WHEREAS, the proximity of the proposed solar project offers distinct and special value to the
City by mitigating basis risk,encouraging economic development,and projecting a positive environmental
message about the City and WMUC;and
WHEREAS, the procurement of energy, capacity, and ancillary services through a large local
development is a unique transaction that causes bidding to be neither feasible nor practical; and
WHEREAS,Arkansas law codified at A.C.A. §1458-303(6)(2)(6)allows City Council to waive
traditional bidding in favor of a better procurement process in exceptional situations where traditional
bidding is deemed not feasible or practical; and
WHEREAS,WMUC recommends to the City Council to approve the contract attached hereto as
Exhibit A;and
WHEREAS, Arkansas law codified at A.C.A. 14-203-115(6) allows for cities to enter wholesale
power contracts that are payable by and from the rates collected by the City's electric utility, and include
covenants that rates will be adequate to meet the City's obligations under the contract,to wit:
"For so long as any contract for the purchase of electric power and energy is in effect,the
rates, fees, and charges for electric power and energy charged and collected by a
municipality may be fixed to provide sufficient revenues to secure payments of amounts
due under the contract and to comply with the terms of the contract. Any contract shall be
approved by ordinance of the governing body of the purchasing municipality, and the
ordinance shall be published one (1) time in a newspaper of general circulation in the
municipality. Any contest of the ordinance shall be barred at the end of thirty (30) days
after the ordinance is published" A.C.A. § 14-203-115(6).
and RECANCD
WHEREAS, the City Council hereby finds that: pC/l�/
• the procurement of wholesale power from a large solar development located in direct
proximity of the City is a unique transaction that renders bidding impractical; and
• execution of the contract attached hereto as Exhibit A is in the best interest of the City and
its citizens.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WEST MEMPHIS,ARKANSAS:
SECTION 1.That the Power Supply Agreement attached hereto and incorporated herein as Exhibit
A is hereby approved. The Mayor and the City Clerk are hereby authorized to execute the Power Supply
Agreement on behalf of the City. Further, the Mayor is also hereby authorized to approve any
modifications,amendments or changes that may be necessary in the ongoing process of finalization of the
contract terms.
SECTION 2. That traditional bidding is an impractical method to procure energy, capacity, and
ancillary services from a nearby solar project. Thus, traditional bidding is hereby waived.
SECTION 3. That this Ordinance is passed in full accordance and compliance with Title 14
Chapter 203 of the Arkansas Code Annotated,codified at A.C.A. § 14-203-107,et seq.,and accordingly is
to be published one(1)time in a newspaper of general circulation in the municipality. By law, any contest
of the ordinance shall be barred at the end of thirty(30)days after the Ordinance is published, in accordance
with Ark. Code Ann. $14-203-115(6).
SECTION 4. EMERGENCY CLAUSE.That it is found and determined by the City Council of
the City of West Memphis,Arkansas, that there is limited availability of solar power to be purchased from
the local solar project that is currently under development and that time is of the essence to finalize this
Agreement while the ability to purchase is still available, and that an emergency is declared to exist and
this Ordinance being immediately necessary for the preservation of the public peace, health and safety of
the population and therefore this Ordinance shall be in full force and effect from and after its passage and
approval. 5
PASSED AND APPROVED this
day of .2021.
MARCO MCCLENDON, MAY OR
ATTEST:
6
POLL .CITY CLERK
SPONSORED BY: