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HomeMy WebLinkAbout1976-051NO AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE TRANSFER AND SALE OF CERTAIN PROPERTIES AND PROPERTY RIGHTS BELONGING TO THIS CITY TO THE TEXAS MUNICIPAL POWER AGENCY, REPWALING AN ORDINANCE OF CITY OF DENTON, DECLARING AN EMERGENCY, AND RESOLVING OTHER MATTERS IN CONNECTION THEREWITH AND PROVIDING AN EFFECTIVE DATE WHEREAS, the TEXAS MUNICIPAL POWER AGENCY ("TMPA") has been heretofore created and established as a municipal corporation, a political subdivision of the State of Texas, and a body politic and corporate, by the Cities of Bryan, Denton, Garland and Greenville, Texas ("The Cities"), and WHEREAS, Brazos Electric Power Cooperative, Inc , ("Brazos") ana the Cities are the joint owners of that certain tract of land in Hunt County, Texas, that is described in a deed in which they are the grantees dated May 23, 1973, recorded in Volume 729, Page 749 of the Deed Records of Hunt County, Texas, together with the fuel oil and truck terminal which is located thereon ("oil terminal"), and WHEREAS, pursuant to a common lignite fuel development plan Brazos and the Cities, by and through lignite leases, options to lease, exploration contracts and other instruments executed pursuant to or in contemplation of a Lignite Joint Ownership Agreement dated April 28, 1975, have conducted exploration for lignite and have acquired jointly certain interests in real property in various counties in Texas, and the lignite located in and under such real property, in the name of Brazos Electric Power Cooperative as Trustee for the Texas Municipal Power Pool, which agreement provides that Brazos will not transfer or otherwise dispose of the interest of a participant to such agreement without the written consent of the participant, and WHEREAS, TMPA, Brazos and Texas Power Pool, Inc ("TPPI"), entered into an agreement dated October 30, 1975, entitled "Pre- liminary Participation Agreement" pursuant to which additional exploration has taken place and interests have been acquired in lignite through leases, options to lease or other instruments, with title to such interests being held by TPPI as agent for TMPA and Brazos, and TMPA and Brazos, and TPPI and Brazos have entered into other agreements for the development of fuel resources, planning electrical generation facilities, and performing certain services in furtherance of the Lignite Joint Ownership Agreement and the Pre- liminary Participation Agreement, and WHEREAS, pursuant to the foregoing agreements and other joint undertakings, the cities have acquired interests in real property, (the "lignite properties") and have acquired the results of testing and exploration for lignite (the "exploration results"), and have developed plans for the development of fuel resources and generation facilities, (the "fuel development programs") and WHEREAS, by Memorandum of Agreement dated September 16, 1976, between TMPA and Brazos, Brazos has agreed to convey to TMPA the interests of Brazos in the Oil Terminal, the lignite properties, the exploration results, and the fuel development programs in exchange for the reimbursement to Brazos for capital contributions made by -2- Brazos to the various joint projects, and the assumption by T11PA of all obligations of Brazos associated therewith, and WHEREAS, TMPA has expressed a desire and willingness to acquire the interest of the Cities and Brazos in the Oil Terminal, the lignite properties, the exploration results, and the fuel development programs in exchange for the reimbursement to all parties by TMPA for the capital contributions made by each party to such projects, and the assumption of all obligations associated therewith, and all of such parties have indicated an agreement that TMPA may better administer, handle, and own such properties, and that legal title thereto should be vested in TMPA, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS SECTION 1 It is hereby found that the interest of the City in the properties described in the preamble hereof (a) Could best be utilized and administered by Texas Municipal Power Agency, that such use and administration by Texas Municipal Power Agency would be a higher public use and a paramount public purpose since the same could be accomplished at a savings to the City, but without adversely affecting the rights of the City under its agreements with Texas Municipal Power Agency, and (b) Are to be transferred by the voluntary action of this City, rather than requiring Texas Municipal Power Agency to exercise the power of eminent domain, and (c) Are to be purchased by Texas Municipal Power Agency by the payment to this City of all capital contributions made by -3- this City to such joint projects, as heretofore agreed upon, and the assumption of any obligations of this City associated therewith, which the City Council finds will represent replacement by property of equal value, and (d) Are not to be used by this City for the purpose of pro- viding fuel for the electric generating facilities of the City (insofar as the lignite is concerned) since this City has determined that lignite fired generation facilities are not to be constructed by this City but may best be constructed by Texas Municipal Power Agency for the benefit of or use by all of the Cities mentioned in the preamble hereof SECTION 2 At such time as conveyances, assignments or other instruments of transfer have been prepared and approved by the City Attorney, the Mayor is authorized to execute such instruments of conveyance, assignment or transfer as may be necessary to convey, assign and transfer to Texas Municipal Power Agency the following (a) All right, title and interest of this City in the fuel oil and truck terminal, (b) The undivided interest of this City in the lignite prop- erties whether through options for lignite leases or for purchase of the fee title, lignite leases or purchases of the fee title or other items, including all of such interests in real property that have been acquired in the name of Brazos Electric Power Cooperative, Inc , or Texas Power Pool, Inc , as trustees or agents for this City, -4- (c) The undivided interest of this City in the Bryan lignite fuel development program and the other fuel development programs and in the exploration results involving, among others, Van Zandt, Marion, Madison, Brazos, Grimes, Burleson, Fayette, Wood, Hopkins and Franklin Counties, Texas, including all logs, cores, surveys, tests, reports and other information developed pursuant thereto, and all claims, interests, rights and causes of action connected therewith SECTION 3 Brazos Electric Power Coopertive, Inc , and Texas Power Pool, Inc , are hereby authorized, to the extent necessary, to execute, on behalf of this City, conveyances, assignments or other instruments of transfer to Texas Municipal Power Agency conveying, assigning and transferring any interests they may hold as Trustee or Agent for this City in any property or property rights described in Section 2, above SECTION 4 The conveyances, assignments and transfers to be executed by the Mayor pursuant to Section 2, above, shall be de- livered to Texas Municipal Power Agency when payment is made to this City of equal value, but pending such payment and delivery Texas Municipal Power Agency, as agent for this City, is hereby authorized to use, manage and administer such property and property rights on behalf of this City without further authorization than this ordinance SECTION 5 2nd day of SECTION 6 Ordinance Number 75-50 , adopted the December , lg 75 , is hereby repealed All the recitals and preamble hereinabove stated are found to be true and correct -5- SECTION 7 It is officially found and determined that this meeting of the City Council is open to the public as required by law and that public notice of the time, place and purpose of the meeting was given as required by law SECTION 8 The public importance of this measure and the fact that it is to the best interest of the City to accomplish the transfers herein contemplated at the earliest possible date con- stitutes and creates an emergency and an urgent public necessity, requiring that any rule providing for ordinances to be read more than one time or at more than one meeting of the City Council be suspended, and requiring that this ordinance be passed and take effect as an emergency measure, and any such rules or provisions are hereby suspended APPROVED and ADOPTED this / t�day of , 1976 MAYOR OF THE CI DENTON, TEXAS ATTES OKS HOLT, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM ✓ PAUL C ISHAM, CITY ATTORNEY CITY OF DENTON, TEXAS