HomeMy WebLinkAbout24-1876 INCOMPLETEORDNANCE NO. 24-1876
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATiON, AUTHORIZ[NG THE CITY MANAGER TO EXECUTE AMENDMENT
NUMBER FOUR (4) TO THE POWER PUCHASE AGREEMENT BETWEEN THE CITY
AND CORE SCIENTIFIC INC., A DELAWARE CORPORATION: PROVIDING
FOR AN EFFECTiVE DATE
WHEREAS, the City of Denton (“City”) owns and operates an electric utility which
provides electric energy and related services to all customers within Denton Municipal Electric’s
(“DME)’' Public Utilities Commission of Texas (PUCT) certificated jurisdiction; and
WHEREAS, the City and Core Scientific, Inc entered into a Power Purchase Agreement
(“PPA”) dated September 3, 2021 for the City’s provision of electric energy and related services
to a to-be-constructed data center on property to be leased from the City; and
WHEREAS, the City and Core Scientific, Inc. entered into the third amendment to the
(PPA) (“Amendment No. 2”) on August 20, 2024 to permit the conversion from cryptocurrency
mining to High Performance Computing (HPC) for Phase III of the project, which is
incorporated herein; and
WHEREAS, Core Scientific intends to convert the remainer of the project to HPC and to
add additional electrical demand capacity to the project; and
WHEREAS, the City and Core Scientific have agreed to terms and conditions
for Amendment Number 4 to the PPA (“Amendment No. 4“) as Exhibit “A“ and incorporated
herein for all purposes; and
WHEREAS, the City Council further finds that Amendment No. 3 to the Lease is in the
best interest of the customers of Denton Municipal Electric, and
WHEREAS, the City and Core Scientific, Inc. have agreed to terms and conditions to the
first amendment to the PPA (Amendment No. 1) as Exhibit “A“ and incorporated herein for
all purposes; and
WHEREAS, the City Council finds that Amendment No. 4 to the PPA should be
sealed and exempted from public disclosure, as permitted by the provisions of §552.133 of
the Texas Government Code, as a document that is reasonably related to a competitive electric
matter, the disclosure of which would provide an advantage to the competitors or prospective
competitors of the City’s municipal electric operation (“Competitive Information”); and
WHEREAS, the City Council finds that it is in the public interest that it exercises its right
under the Texas Government Code to lawfully safeguard and keep Amendment No. 4 to the PPA
sealed, as it contains competitive electric commercial and financial information; and
WHEREAS, the City Council finds that it is in the public interest that a copy of
Amendment No. 4 to the PPA, redacted of Competitive Information, be made available to the
public; and
WHEREAS, the City Council further finds that Amendment No. 4 to the PPA is in the best
interest of the customers. NOW, THEREFOR,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations contained in the preamble of this ordinance are incorporated
herein by reference as findings of the City Council.
SECTION 2. The City Council approves and authorizes the City Manager, or their
designee, and City Secretary, or their designee, to execute, attest and deliver, respectively,
Amendment No.4 to the PPA, attached as Exhibit “A”, with Core Scientific, Inc.
SECTION 3. The City Council approves and authorizes the City Manager, or their
designee, to take such additional actions as the City Manager, or the designee, determines to be
necessary and advisable to continue to effectuate the purpose, terms, and conditions of Amendment
No. 4 to the PPA.
SECTION 4. Immediately following the execution, attestation, and delivery of
Amendment No. 4 to the PPA, the City Secretary is directed to seal and maintain the PPA in their
custody and control, as documents excepted from public disclosure under the provisions of Texas
Government Code, Section 552.133 unless otherwise lawfully ordered to disclose said documents.
SECTION 5. A copy of Amendment No. 4 to the PPA, redacted of Competitive
Information, attached Exhibit ''B”, shall be available to the public for inspection and copying.
Absent lawful order, the Amendment No. 4 to the PPA and the original PPA shall not be available
for public inspection or copying and will be sealed as provided for in the preceding section.
SECTION 6. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by Gerard Hudspeth and seconded by
Brandon Chase McGee, the ordinance was passed and approved by the following vote [7 - 0] :
Aye
X
X
X
X
X
X
X
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District ! :
Brian Beck. District 2:
Paul Meltzer, District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6,
PASSED AND APPROVED this the 19th day of November, 2024.
GERARD HUDSPETH, MAYOR
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ATTEST:
LAUREN THOEDEN, CITY SECRETARY
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kb;bAPPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
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