President and Board of Trustees

123 Madison Street Village of Oak Park Oak Park, Illinois 60302 www.oak-park.us Meeting Minutes President and Board of Trustees Monday, June 8, 2015 7:00 PM Village Hall I. Call to Order Village President Abu-Taleb called the meeting to order at 7:02 P.M. II. Roll Call Present: 6- Village Trustee Barber, Village Trustee Lueck, Village Trustee Ott, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb Absent: 1- Village Trustee Brewer III. Agenda Approval It was moved by Village Trustee Ott, seconded by Village Trustee Tucker, to approve the agenda. A voice vote was taken and the motion was approved. IV. Non-Agenda Public Comment There was no non-agenda public comment. V. Regular Agenda A. RES 15-331 A Resolution Authorizing Execution of an Electric Power Supply Contract with (supplier name) for the Oak Park Community Choice Aggregation Program Period of June 2015 to June 2016 Village Manager Pavlicek announced that consultant Mark Pruitt with the Illinois Energy Choice Aggregation Network will provide an overview of activities within the last few days related to bids for an electrical supplier. The board will be given the options of naming a new electrical supplier for a 12 or 24 month period starting in September, extending the current contract with Constellation Energy for a 60-day period to allow for continued pricing or revert back to ComEd. Mr. Pruitt stated that his recommendation is to extend the current contract with Constellation Energy at the rate of 7.05 cents per kWh in order to provide more time to work with suppliers to develop a pricing structure that will maximize the Village's opportunity to fund local energy program development. His rationale is that the prices for electricity are steadily declining. Given the Village's intent to achieve as much headroom between the program price and the price to compare from ComEd, a little more time will allow for a little more headroom. The ComEd price to compare is currently at approximately 7.02 cents per kWh. The best 12 month alternative is currently at 6.99 to 7 cents. The Village could also go to a 24-month contract in the 6.84 cent range. For the first 12 months, the price would be well below the comparable ComEd rate. However, in the second 12 months, the comparable ComEd price is going to drop to reflect those lower future market rates and the Village would be committed to a rate higher than Village of Oak Park Page 1 Printed on 6/16/2015 President and Board of Trustees Meeting Minutes June 8, 2015 ComEd's. His professional opinion was to watch the market over the next few weeks. In order to do that, it would be best to extend the current contract. Another option is to return to ComEd. However, ICC rules dictate that a retail supplier cannot be the return supplier for a period of six months once an account has gone back to ComEd, therefore Constellation could not be one of the bidders. An additional reason for a short-term extension is that it could allow for broadening the bidding pool. Some suppliers that don't typically operate in the aggregation arena have expressed interest. Mr. Pruitt and his firm have been working with their legal departments diligently over the past week and weekend to review the contract format that the Village has used in the past to familiarize them as to what the obligations are. A short extension would give them an opportunity to work through a full due diligence review by their legal staff to establish whether or not they would be interested in or have the qualification to bid. He is, however, confident that both firms have the qualifications, as they are subsidiaries of large out-of-state utility companies. Mr. Pruitt answered questions from the Board. Jim Babcock. Mr. Babcock expressed his opinion regarding the additional charge to taxpayers for local energy initiatives and what those funds could be used for. There was discussion regarding the Board being kept up to date regarding rates and consensus to reconvene to approve the final supplier and rate rather than give that authority to the Manager. There was consensus that the Resolution be amended to reflect an extension of the contract with Constellation from August 2015 through October 2015 at the rate of 7.05 cents per kWh. It was moved by Village Trustee Salzman, seconded by Village Trustee Tucker, that this Resolution be adopted as amended. The motion was approved. The roll call on the vote was as follows: AYES: 6- Village Trustee Barber, Village Trustee Lueck, Village Trustee Ott, Village Trustee Salzman, Village Trustee Tucker, and Village President Abu-Taleb NAYS: 0 ABSENT: 1- Village Trustee Brewer VI. Adjourn It was moved by Village Trustee Ott, seconded by Village Trustee Tucker, to adjourn. A voice vote was taken and the motion was approved. Meeting adjourend at 7:35 P.M. Monday, June 8, 2015. Respectfully submitted. MaryAnn Schoenneman Deputy Village Clerk Village of Oak Park Page 2 Printed on 6/16/2015