HomeMy WebLinkAbout01-10-1995
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CITY COUNCIL AGENDA PACKET
1-10-95
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AGENDA [ate J 1 2
CITY OF DENTON CITY COUNCIL
January 10, 1995
Closed Meeting of the City of Denton City Council on Tuesday,
January 10, 1995 at 5:15 p.m. in the civil Cafense Rocca of City
Hall, 215 E. McKinney, Denton, Texas, at which the following items
will be considered:
5:15 p.m.
NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO
CLOSED MEETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS
LEGALLY PERMISSIBLE.
1. Closed Meeting:
A. Legal Matters Under TEX. GOVT CODE Sec. :51.071
B. Real Estate Under TEX. GOV'T CODE Sec. 551.072
1. Discussion regarding lease of property for
additional parking for the DMC from Union Pacific
Railroad.
C. Personnel/Board Appointments Under TEX. GOV'T CODE
Sec. 551.074
1. Consider working conditions of part-time and
assistant ju,.;as and give Municipal Jude
direction. 0 g
special Called Session of the City of Denton City Council on
Tuesday, January 10, 1995 at 6:00 p.m. in the City Council Chambers
of City Hall, 215 E. McKinney, Denton, Texas at which the following
items will be considered:
6:00 p.m.
1. Receive a briefing, hold a discussion and consider a motion
regarding various requests to TMPA.
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C E R T I F I C A T E z q z
I certify that the above notice of meeting was posted on the
bulletin board at the City Hall of the City of Denton, Texas, on
the day of 1994 at o'clock (a.m.)
(p.m.)
CITY SECRETARY
NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE
CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE
HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN
ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY
SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS
DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO
THAT A SIGN LAr"?UAGE INTERPRETER CAN HE SCHEDULED THROUGH
THE CITY SECRETARY'S OFFICE.
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DATE; January 10, 1995
CITY COUNCIL AGENDA ITEM
TO: Mayor and Members of the City Council
FROM: Lloyd V. Harrell, City Manager
DATE: January 10, 1995
SUBJECT: MEE'T'ING OP TMPA MI MB13R CI'l'IT;S ON JANUARY 4, 1995
REGARDING 'TMPA ISSUES AND FC;TURL COURSE OF
TMPA
SUMMARY:
fhe City of Garland requested a meeting of representatives from the four member cities over
immediate concerns regarding the future course of"TMPA, its power supply, its relationship to
the four member cities, and its escalating cost of power to its member cities. The representatives
requested to attend Ihcjoint meeting included the Mayor, City Manager, Utility Board Chairman,
and Utility Manager from each city. From this representation from each city, it was hoped that
a consensus of planning and understanding could he developed in order that these concerns could
be forwarded to [lie cities governing bodies.
'rhe City of Garland, in addition to other member cities including Denton, had recently expressed
concerns on die results of the Burns & McDonnell Power Supply Study done for TMPA as it
related to &[ermining future TMPA power supply . The cities also did not feel they had been
,dlowed sufficient input and that all possible alternatives had not been considered. In addition
to these concerns on TMPA power supply, the City of Denton had continued to express its
concert to TMPA management on the restrictions contained within the TMPA contract with the
Cities. !'his contract prohibits the City of Denton from controlling or reducing costs on its own
native Spencer generation by upgrading or replacing its existing generation.
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I'rom the discussion of the member cities present at the meeting the following statements
represanled the consensus of' the concerns for the members present:
I. Reduce the cost ol'power from the TMPA resources to the lowest achievable level.
• 2. Obtain flexibility For member cities to modify or change [heir own power ♦ •
-esources according to their individual desires.
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3. Obtain more direct control of TMPA policies and actions by the member cities, or
4. Return TMPA's rac to its members' cities to That of a power plant versus its
present structure of a utility.
After discussion, the following course of action was recommended for each of the main points
of concern:
1. Cost of TMPA Power
a. By May I, 1995, TMPA will reduce its demand charge by
$1.25/KW month. flow 'TMPA was to reduce overhead and
maintenance cost within the demand structure would be left to the
T,VIIPA Board and Management,
b. By January 1, 1996, TMPA will reduce its total cost if power and
energy sold to the cities to 4.0¢/KWI1. (Present cos! a 5.2¢/kwh).
This issue represents TMPA future power supply The figure
reached by a separate sub-meeting of the Uti Directors,
represents what the cost of power should be from Jestem fuel,
coal-fired power plant operating within a lower n e of O & M
expenses as referenced from current operating tigr • fired plant.
C. By January 1, 1998, TMPA will reduce power and .ucrgy cost by
an additional .23~/KWH. This represents a consensus that TMPA
should be able to properly dispose of its draglines by such date and
eliminate a $7.8 million annual lease cost.
Flexibility for Member Cities Regarding Native Generalion
a. A contract amendment finalizing changes allowing flexibility to
cities will be completed within 60 days.
b. City Managers', Cily Attorneys', and TMPA Board Attorneys' to
meet within two weeks to develop plan for submiUal to respective
Boards and Councils,
3. Control
a, Short term - For approximately one year, the City Managers' would
act as an oversight committee to monitor agency performance with
6 respect to the goals, • •
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b. Long term - Planning and Operating Committee would have Ojq
oversight over the Operating Budget in addition to their existing
responsibilities.
The final action recommended was a short-term calendar for implementation of recommended
actions:
I . A report was to be given to each City Council within two weeks.
2. Each City Council is asked to give specific directions to its TMVA Hoard
Members.
3. TMPA Board members would hold a special meeting in 30 days to discuss
proposed directives.
4. Oversight meeting will be scheduled by City Managers' with Ed Wagoner at an
appropriate time after the TMPA Board meeting.
5. Meeting with Bond Council, City Managers' and City Attorneys' regarding
contract changes (See Action 42).
b. Original convened group to meet in Denton to receive a report from Ed Wagoner
on his plan to meet the desired action proposals.
A copy of the minutes from the above meeting is attached.
act y submitte
Lloy V. Harrell, City Mana r
Prepared by: e
( 1 t✓" •?'c%~t
,Vii Ilarder, Director
0 of Electric
7 Apprs.'~b>~ ~f I
R. E. Nelson, Executive
• Director Utilities
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MEMORANDUM
TO: Attendees
FROM: Jeff Muzzy nee
DATE: January 5, 1995
SUBJECT: MINUTES OF TMPA MEMBER CITIES MEETING JANUARY 4, 1995;
GARLAND, TEXAS
Following welcoming and Introductory remarks by Garland's Mayor Jamie Ratliff,
each member city in turn expressed their TMPA related issues, concerns and tt^,alr
thoughts as to areas In which positive action should be taken.
From this discussion there were consensus that all the members primary concerns
could be represented by the following four topics.
1. Reduce cost of Power from TMPA resources to the lowest achievable level.
2. Obtain flexibility for member titles to obtain their future power resources
according to their individual desires.
3. Obtain more direct control of TMPA poilcies and salons by the member cities.
4. Rsturn TMPA'a role to its members' cities to that of a power plant (ace opposed to
that of quasi-utility supplying wholesale energy services).
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Discussion of point 01 brought consensus on the following goals that were to be
communicated via the TMPA board to the TMPA Management.
Request the TMPA Management, within 30 days, to provide to the TMPA hoard
and the customer cities a plan that would:
a) Reduce the current demand charge by $1.26/kw. This must be
accomptished without deferral of expenses or reducing operating reserves.
b) Reduce agency power costs to $40.00 MWH by January 1, 1996, This
must be accomplished without deferral of expenses or reducing operating
reserves.
c) Mitigate the lease payments on the mine dra gilines by January 1,
1998, and make a corresponding reduction to the demand charge.
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Flexibility Date --lLiaL95
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With regard to point k2 there were consensus that the Agency board,
management and legal counsel would develop a plan that would remove the
restrictions placed on the member cities by Section 3 of the Power Sales
Agreement. There was further consensus that this process should begin within
2 weeks with a meeting between the TMPA city managers, their city attorneys
and the agencies bond counsel and that an action plan should be concluded
within 60 days.
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With respect to the 4th pclnt there were consensus that It was the desire of theg
member Cities that TIVIPA's role in the future be only that of a generating plant
(staffed only to fulfill that functfon) and that the member cities would decide among
themselves as I! w to hest accomplish the other functions currently encompassed
within the agency,
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With regard to point #3 there ware consensus that; Fog q
• The individual city counclls would inform TMPA via their respective board
members of what future actions were expected, E
• That the TMPA P60 Committee would have oversight of the agency operating
budget, (in addition to their present responsibilities)
• That for a short period of time (approximately one year) the TMPA city managers
would act as an oversight committee to monitor agency performance with
respect to the four goals Idb,itifled,
Jeff Muzzy will serve as chairman of this committee,
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To start the process of fulflUing the four Identified objectives the group identifled the
following sequential actions for the immediate future.
1. Within 2 weeks each city would report to its respective council on the meeting
and the action plan agreed on.
2. Each council would give specific directions to its respective TMPA Board
Members regarding the common goals,
3. Each council would request that a special meeting of the TMPA Board 50
schMduled In February, In Greenville. for tho purpose of meeting with the
dMignated city representatives regarding the goals set by the member cities,
4. The City Manager's oversight committee would meet with the general manager
of the Agency,
6. The agency Management and its bond counsel would meet with the CIty
Managers and their city attomoys.
The designated city representatives would most again, In Denton, to review the plan
prepared by the Agency Management to accomplish the identifled goats.
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