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HomeMy WebLinkAbout1976-034614�04Aria. E No 7 AN ORDINANCE by the City Council of the City of Denton relating to the relationship of the City of Denton with the Texas Municipal Power Agency, approving the construction of an electric generating facility by the Agency, to be known as Bryan Lignite Number One, as well as certain System Development and Reliability Expenditures and Development Projects and the issuance of bonds by the said Agency for such purposes, approving a Power Sales Contract and providing for its execution on behalf of this City, enacting other provisions incident and related to the purpose of the ordinance, and declaring an emergency WHEREAS, this governing body has received the request of the Board of Directors of the Texas Municipal Power Aggency that this governing body approve (1) the construction o£ an electric generating facility by the Agency, to be known as Bryan Lignite Number One, and (2) certain System Development and Reliability Expenditures, and (3) certain Development Projects, and (4) a Power Sales Contract, and WHEREAS, this governing body has and does hereby determine that it is in the best interest for the City and its inhabitants tp approve the same and the issuance of bonds by the Agency tq provide a portion of the funds which will be required, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS SECTION 1 That Bryan Lignite Number One is hereby T— approve as project of the Texas Municipal Power Agency, such project being described as follows An electric generating plant (including land), steam boiler, steam turbine, electric generator, cooling facilities, associated transmission, transformation and switching facilities so as to connect the plant to existing or proposed facilities, a lignite mine, railroad siding, shops, warehouses, construction camp, office, dwellings and other structures, fixtures, equipment, supplies or other items which the Board of Directors ofithe Agency finds are needed or useful in connection with the construction, maintenance, and operation of the plant (and providing fuel for the same) so the electric generating plant shall be placed in service as an operating utility It is anticipated that such initial generating plant will include a steam turbine acting as the prime mover of an electric generator of approximately 400,000 kilowatts (net) The steam boiler, steam turbine and electric generator will belof the outdoor type with all other equipment relating to plant services and control enclosed in appropriate buildings It is planned that plant cooling facilities are to be in the form of a pond supplied from underground water or the water purchased from an existing water -storing entity in the area for make-up water or by impounding water The strip mining operation includes equipment for excavation and transportation The Project includes communication equipment, all necessary permits, licenses, developmental rights, easements, right of way, approvals, certificates of state and federal agencies where applicable, real estate and interest in properties where necessary SECTION 2 That the issuance of bonds of the agency in the pr n—ipaaamount of $50,000,000 is hereby approved, it being understood that the bond proceeds are to be expended for the purposes shown below I Application of Proceeds (Estimated) Construction Fund Capitalized Interest at 7-1/2%) Capitalized Reserve Legal, Fiscal Refunding of Series TOTAL (2 years 1975 Bonds* $27,050,855 *Plus accrued, unpaid interest thereon II Application of Construction Fund A Projects - $22,664,000 1 Bryan Lignite B Svstem Development & Realiability $3,386,885 1 Transmissiort a Greenville/Olinger Line b Bryan Capacitor Bank c, Bryan Interconnection d Garland 345 MVA Line (right of way) e Denton Interconnection 2 Other a Fuel exploration and acquisition Program b Microwave Communications System c Lconomic Dispatch System c Development Projects - $1,000,000 1 Village Bend Pumped Storage 2 Miscellaneous Preliminary Projects That the estimated expenditures are subject to adjustment and finalization as preliminary estimates at such time as the bonds of the Agency are sold and definitive construction bids are received SECTION 3 That the System Development and Reliability Expen tudi res Include (a) Olinger - Greenville Transmission Line - the estimated balance required to provide survey, right of way, line construction, interconnection and engineering for a new 20 mile 138 KV transmission line form Greenville to Olinger (b) Bryan Capacitors Bank - to prevent Bryan from experiencing severe voltage drop during certain pooling contingencies, 21 6 MVAR of 69 KV capacitor banks are to be placed in service (c) Bryan interconnection - a 20 mile 138 KV line from Hearne to Bryan to provide transmission interconnection and reliable back up for the new 100 MW Dansby unit scheduled for completion in 1978 (d) Garland 345 MVA line (right of way) - to deliver p wer from Comanche Peak and Bryan Lignite Number One to G:rland and Greenville, a 345 KV line, two double circuit 138 KV lines, and a 500 MVA 345/138 KV autotrans£ormer will be required A 345 KV substation is to be located in Northeast Garland Right of way is to be acquired at this time since the completion date is now scheduled as June, 1980 (e) Denton interconnection - improvement program to provide firm transmission supply to over 231 MW of load in Denton and Roanoke area, including the conversion of portions of an existing 69 KV transmission system to 138 KV operation and two new 138 KV interconnections Rights of way and substation site purchases are to proceed immediately K, (f) Fuel exploration and acquisition program - the search for fuel for Projects other than Bryan Lignite Number One (g) Microwave Communication - continuation of the development of a communication system begun with the initial financing of the Agency (h) Economic Dispatch Studies - continuation of studies (begun with proceeds of initial financing by the Agency) operating the most efficient and economical generating units The System Development and Reliability Expenditures are hereby approved SECTION 4 That the Development Projects hereinabove listed are hereby approved SECTION 5 That the form of bond resolution (being designate as "Proof of 3-29-76") which embodies the suggested terms and conditions under which $50,000,000 in principal amount of the bonds of the Agency shall be issued (such bonds to be dated September 1, 1976, with interest payable semiannually thereafter on March 1 and September 1 of each y9ar) is hereby approved It is understood that certain final details of the bonds will be inserted in Article II and other blanks completed, but no substantial change is to be made in Article III through Article VI nor shall any change be made which would cause the bond resolution to be contrary to the Power Sales Contract SECTION 6 That the Power Sales Contract by and between the Texas FfunTcipal Power Agency and this City (the same being identical contracts between said Agency and the Cities of Bryan, Denton, Garland, and Greenville), being attached hereto as Exhibit A, is hereby approved The Mayor of this City is hereby authorized to execute said contract as the act and deed of this City and its governing body 4 SECTION 7 That the public importance of this measure and t e act t at it is to the best interest of the City to approve certain doCUmL1ts and the execution of a Power Sales Contract with the Texas Municipal Power Agency at the earliest possible time in order that the joint project of the Cities of Bryan, Denton, Garland and Greenville (to be accomplished through said Agency) may proceed, constitutes and creates an emergency and 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 accordingly suspended and this ordinance is passed as an emergency measure, and shall take effect and be in full force from and after its passage, and it is so ordained 3a PASSED AND APPROVED, this the Nth day of July, 1976 Mayor, City or Denton, Texas ATTEST (City Seal) CERTIFICATE OF CITY SECRETARY THE STATE OF TEXAS § S COUNTY OF DENTON § CITY OF DENTON § I, the undersigned, City Secretary of the City of Denton, Texas, DO HEREBY CERTIFY that accoiding to the records of the City of Denton, of which I am custodian, that 1 The attached ordinance is a true and correct copy of an ordinance adopted by the governing bode of the City of Denton on the i-;F-th day of July, 1976, and F� 2 At such meeting (a) a quorum of the governing body was present in that s— members of said governing body were in attendance at -Lich meeting when the question of the adoption of the ordinance was called for and placed to a vote, and (b) _1Z members of said governinp, body voted for the final adoption of such ordinance and / members of said governing body voted against its adoption, and (c) the said ordinance, was adopted only after a motion was made that the same be adopted and the seconding of such motion, and 3 Prior to such meeting (a) notice of the time, place, subject and purpose of the meeting had been posted at the City Hall or Municipal Building on the bulletin board where such notices are customarily posted for at least three days prior to the date of such meeting, and (b) actual notice of the time, place, subject and purpose of the meeting had been given to each member of the governing body of the City in that; (i) the undersigned gave actual verbal notice or (ii) caused a written notice to be mailed, postage prepaid to the home address of each member of such governing body, and 4 A true copy of the notice of meeting to which reference is made in paragraphs 3(a) and 3(b)(ii) is attached 5 The members and officers of the governing body of the City of Denton as of the time of the passage of such ordinance were ELINOR HUGHES BILL NASH RAY STEPHENS JOE MITCHELL BEN IVEY, JR MAYOR COUNCILMEN and the following persons hold the respective office listed after their name JAMES W (JIM) WHITE CITY MANAGER BROOKS HOLT CITY SECRETARY PAUL ISHAM CITY ATTORNEY and the following persons are those individuals who have been designated by the City of Denton as its members on the Board of Directors of the Texas Municipal Power Agency JAMES W (JIM) WHITE and E B TULLOS 6 That on the 8th day of May, 1975, the City of Denton, Texas, owned and operated its electric light and power system, including the facilities For the generation of electric power and on said date the City was actually engaged in the generation and sale of electric energy to the public, and 7 The City of Denton is currently operating as a home rule City under the provisions of Article XI, Section 5 of the Constitution of the State of Texas, having adopted a home rule charter thereunder, and that the home rule charter of the City has not been amended since the day of Cry , 19-ZW/- TO CERTIFY WHICH, witness my official signature and the seal of said City this Wth day of July, 1976 ty Secretary, City of Denton, Texas (City Seal)