Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A TWO-YEAR EXTENSION TO THE THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH THE ALLSTATE INSURANCE COMPANY; AND DECLARING AN EMERGENCY.
Brief Description: In 2021 City Council approved an extension of the of the current “E” rate development agreement with the Allstate Insurance Company located on Executive Parkway in Hudson Ohio. To allow for the completion of the 2021 electric rate and cost of service study, Council temporarily extended the agreement from July 1, 2021 to September 1, 2021 and again from September 1, 2021 to November 30, 2021. As the Rate Study has now been completed, and based on the consultant’s recommendation, staff seeks to continue the current “E” rate for an additional two (2) year term.
Body
Legislative History
Resolution No. 12-104 authorizing a development agreement with Allstate Insurance Company for 2012-2015; passed 7/18/2012.
Resolution No. 15-74 authorizing the extension of development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2015-2017 (1st amendment); passed 6/16/2015.
Resolution No. 17-48 authorizing the second extension of the development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2017-2019; passed 3/21/2017.
Resolution No. 19-66 authorizing the third extension of the development agreement and establishing the current “E” rate for the Allstate Insurance Company for 2019-2021; passed 5/7/2019.
Resolution No. 21-61 authorizing the temporary extension of the previously authorized “E” rate for the Allstate Insurance Company from July 1, 2021 to September 1, 2021; passed 6/1/2021.
Resolution No. 21-87 authorizing the temporary extension of the previously authorized “E” rate for the Allstate Insurance Company from September 1, 2021 to November 30, 2021; passed 8/17/2021.
Purpose & Explanation
Based on the 2021 Rate Study analysis of the current “E” rate development agreement with the Allstate Insurance Company, Courtney & Associates have recommended that the current flat rate of 0.075 / kWh be continued for another two (2) year term. The current extension agreement expires on November 30, 2021.
Upon the close of the current term, the new “E” electric rate agreement for the Allstate Insurance Company shall remain at $0.075 per kWh with no power cost adjustment for a term of two years, after which the rate agreement will be reevaluated. This fourth extension of the agreement will commence on December 1, 2021 through November 30, 2023.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X “E” Rate Development Agreement
Fiscal Impact
N/A Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
Appropriation Not Required
Does this legislation require use of an emergency clause?
Yes [if so, explain why]
X No
Recommendation
Suggested Action
Staff recommends that City Council approve the resolution authorizing the City Manager to enter into an extension of the development electric rate agreement (schedule “E” rate - 0.075/kWh) with the Allstate Insurance Company, an Illinois Company, (“Allstate”) with its principal place of business located at 2775 Sanders Road Northbrook, IL 60062
Submitted by,
Jane Howington, City Manager
Frank J. Comeriato, Jr., Asst. City Manager-Operations