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Regular Council Meeting September 28, 2020 Page 9 A Motion to approve this item was made by Council Member Portugal and seconded by Council Member Pilgrim. Motion carried, 6 ayes — 0 nays. 19. Discuss and act on ORDINANCE NO. 2020-048: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING AND DIRECTING THE DIRECTOR OF FINANCE TO TRANSFER UNENCUMBERED FUNDS FROM VARIOUS DEPARTMENTS OR RESERVES TO OTHER DEPARTMENTS WHICH ARE EXPECTED TO OVER -EXPEND THEIR ORIGINAL BUDGET APPROPRIATIONS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. Finance Director Gene Anderson explained this was the annual year-end housekeeping ordinance that increases certain departmental budgets to cover anticipated expenditures. He said the increases were offset by decreasing other departmental budgets which had an appropriation surplus, and that the total budget was not be increased. A Motion to approve this item was made by Mayor Clifford and seconded by Council Member Portugal. Motion carried, 7 ayes — 0 nays. 20. Discuss and act on RESOLUTION NO. 2020-047: A RESOLUTION OF THE CITY OF PARIS, TEXAS, ADOPTING TCAP'S PROFESSIONAL SERVICES AGREEMENT AND GEXA ENERGY'S COMMERCIAL ELECTRIC SERVICE AGREEMENT FOR POWER TO BE PROVIDED ON AND AFTER JANUARY 1, 2023. Mr. Anderson said the Texas Coalition for Affordable Power had procured electricity for the City of Paris and its other city members since the beginning of retail electric deregulation in Texas in 2002. He also said that TCAP had historically bought electricity through a fixed price longer-term contract, but it had become evident that the electric market available sources and supplies had changed dramatically. Mr. Anderson explained that TCAP believed that a more optimum program called the Strategic Hedging Program (SHP) will outperform the traditional fixed price/fixed term pricing model. Mr. Anderson said instead of buying electricity through a fixed price longer-term contract, SHP would procure one twelfth of the annual supply each month, two years forward year-to-year. He also said this provides the lowest market pricing to reduce carrying charges and risk premiums that longer term contracts must charge. Mr. Anderson said in order to prepare for an electric supply contract beyond the 2022 end date of the current fixe priced contract, it was necessary for TCAP members to have their governmental bodies pass a resolution approving a Professional Services Agreement and a Commercial Electricity Service Agreement. Mr. Anderson explained the agreement provided members with twice a year periodic off ramps should a member desire to revert to a traditional fixed price/fixed term contract. Mr. Anderson answered questions from City Council regarding the agreement and pricing. A Motion to approve this item was made by Council Member Savage and seconded by Council Member Pilgrim. Motion carried, 6 ayes — 0 nays.