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)