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HomeMy WebLinkAbout2000-152NOTE Amended by Ordinance No 2000-162 ORDINANCE NO �A AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING AN AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND APPLIED UTILITY SYSTEMS, INC PERTAINING TO THE PURCHASE OF COMBUSTION TECHNOLOGY EQUIPMENT AND RELATED SPECIALIZED PROFESSIONAL ENGINEERING SERVICES RESPECTING DENTON MUNICIPAL ELECTRIC, WHICH EQUIPMENT IS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM THE REQUIREMENTS OF COMPETITIVE BIDS, AND WHICH PROFESSIONAL SERVICES ARE EXEMPT FROM THE COMPETITIVE BIDDING PROVISIONS OF STATE LAW, APPROVING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE WHEREAS, Denton Municipal Electric ("DME") is a municipally -owned electric utility which qualifies as a "Public Power Utility" under the provisions of Senate Bill 7 enacted by the 76`h Texas Legislature The City has determined that it is necessary and appropriate at this time, in order to improve efficiency and to comply with applicable governmental regulations, to utilize combustion technology equipment and related specialized professional engineering service in order to modify and retrofit certain units of the City's Spencer Steam Power Plant, and WHEREAS, the combustion technology equipment provided for in the Agreement and Purchase Order is exempted from state competitive bidding requirements under the sole source exception to the competitive statute, as utility services that are available from one source because of natural monopolies or secret processes, as provided by Sections 252 022(a)(7)(A) and (C) of the Texas Local Government Code, and WHEREAS, the combustion technology equipment and the professional engineering services provided for in the Agreement and Purchase Order attached hereto ("Agreement") are also exempted from state competitive bidding requirements as a procurement necessary to protect the public health or safety of the City's residents, as provided by Section 252 022(a)(2) of the Texas Local Government Code, and WHEREAS, the professional engineering services provided for in the Agreement are exempted from state competitive bidding requirements as a procurement for professional services, as provided by Section 252 022(a)(4) of the Texas Local Government Code, and, the City, in procuring the professional engineering services for this project, has extensively searched, and has selected the most highly qualified provider of those services on the basis of demonstrated competence and qualifications, and has negotiated an agreement with the provider at a fair and reasonable price, as provided by Section 2254 004(a) of the Texas Government Code, and WHEREAS, in accordance with the provisions of Section 551 086 of the Texas Government Code, and after public notice having been given in the form and in the manner as provided by applicable law, the City Council, a "Public Power Utility Governing Body" under Senate Bill 7, has received information from Staff, discussed, deliberated, and considered the approval of this Agreement in its Closed Meeting on the 18`h day of April, 2000, after first determining by a majority vote of its members, as required by law, that the consideration of this Agreement by the City Council is related to DME's competitive activity, including commercial information, which if disclosed, would igive advantage to its competitors or prospective competitors, and the City Council, thereafter, in its Open Meeting on the 18`h day of April, 2000 proceeded to consider and take final action on the passage of this ordinance and approval of the Agreement, and the City Council voted to approve the Agreement, SUBJECT HOWEVER, to the following CONDITION The Agreement is approved contingent upon the Texas Natural Resource Conservation Commission ("TNRCC") adopting rules substantially in the form presently proposed by the TNRCC staff, and on the Public Utilities Commission of Texas ("PUC") making a commitment to begin a formal rulemaking process by a date certain that provides cost recovery of (1) Fixed and variable operating costs of the Spencer plant above the market clearing price of energy, and, (2) The investment in the NOx emission monitoring and controls equipment WHEREAS, the City Council has further determined that the Agreement to be entered into by and between the City and Applied Utility Systems, Inc ("AUS") should be excepted from any public disclosure, to the extent lawfully possible, as permitted by the provisions of Section 552 131 of the Texas Government Code, as a document that is reasonably related to a competitive electric matter, the disclosure of which document would provide an advantage to DME's competitors or prospective competitors, and WHEREAS, the City Council deems it in the public interest for the City of Denton to enter into the Agreement with Applied Utility Systems, Inc, NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the recitations and findings set forth in the preamble heremabove are hereby approved and made a part of this ordinance SECTION 2 That once the heremabove-described condition is satisfied or eliminated, then the City Manager is hereby authorized to execute an Agreement and Purchase Order by and between the City of Denton, Texas and Applied Utility Systems, Inc fbr the purchase of combustion technology equipment and related professional engineering services, in substantially the form of the Agreement and Purchase Order attached hereto and incorporated herewith by reference, and at that time the City Manager is hereby further authorized to issue a written notice to AUS to commence work on the project SECTION 3 That the expenditure of funds as provided in the Agreement is hereby authorized at such time as the hereinabove-described condition is satisfied or eliminated, and the City Manager has executed the Agreement and Purchase Order on behalf of the City SECTION 4 That except as otherwise provided in Sections 2 and 3 herein, this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the 18th day of April, 2000 ATTEST JENNIFER WALTERS, CITY SECRETARY By APROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY S \Our Documents\OrdmanceAMppthed Utility Systems Inc DME Ord Vote in Open Final doc