Staff recommends approval of the Mandatory Reliability Standards Compliance Contract (the “Compliance Contract”), which was approved in substantial form by the All Requirements Project on May 24, 2007.
For the past few months, FMPA and the All Requirements Project (ARP) Participants have been involved in a coordinated effort to comply with the North American Electric Reliability Corporation’s (NERC) new mandatory reliability standards. The City of Leesburg is not listed on the NERC compliance registry as a Load Serving Entity (LSE) because FMPA registered and accepted responsibility on behalf of Leesburg for this function.
This arrangement requires FMPA and the City of Leesburg to enter into a written agreement that clearly identifies each party’s respective compliance responsibility.
This system of mandatory reliability standards is new, and there is a degree of uncertainty involved. New standards are being developed, current standards are being amended, and the extent to which they will be enforced is unclear. Because of this, we anticipate contract revisions will be necessary. However, since there must be uniformity among all ARP Participants’ Compliance Contracts, FMPA will not be able to revise the current version of the Compliance Contract at this time.
Staff will be able to provide written comments and suggested changes the City may have after this version of the contract has been executed, and those comments and suggestions will be considered for future revisions.
1. Approve the Mandatory Reliability Standards Compliance Contract
2. Such alternative action as the Commission may deem appropriate
Department: ___Electric Department____
Prepared by: _Connie Lambert________
Attachments: Yes_X___ No ______
Advertised: ____Not Required _X_____
Attorney Review : Yes_X__ No ____
Reviewed by: Dept. Head _Paul Kalv
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A Resolution of the City Commission of the City of Leesburg, Florida authorizing the Mayor and City Clerk to execute a Mandatory Reliability Standards Compliance Contract with the Florida Municipal Power Agency; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute the Mandatory Reliability Standards Contract with the Florida Municipal Power Agency whose address is 8553 Commodity Circle, Orlando, Florida 32819-9002.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _27th____ day of __August_______ 2007.