HomeMy WebLinkAbout2000-405ORDINANCE NO g j—
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF
DENTON AND THE DENTON GARLAND GREENVILLE POWER POOL, PERTAINING
TO THE CITY'S ACQUISITION OF CAPACITY AND ENERGY FOR CALENDAR YEAR
2001, AUTHORIZING 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 DME Staff has determined that it is necessary at this time to acquire
additional capacity and energy for calendar year 2001, so that it can maintain sufficient firm
capacity and energy to meet its daily megawatt load plus reserve megawatt capacity
requirements to insure against unforeseen generating unit outages or load growth above forecast,
and such acquisition further provides more reliable electric service at peak load times for DME's
customers, and
WHEREAS, the City's purchase of electric capacity and energy provided for in the letter
Agreement dated September 19, 2000 (the "Agreement") is exempted from competitive bidding
requirements as an expenditure for "electricity," as provided by Section 252 022 (a)(15) of the
Texas Local Government Code, and
WHEREAS, in accordance with the provisions of Section 551 086 of the Texas
Government Code, after public notice, the City Council, a "Public Power Utility Governing
Body" under Senate Bill 7, has discussed, deliberated, and considered the matter of this
Agreement in a Closed Meeting on the 17th day of October, 2000, after determining by a
preliminary majority vote of its members, that the consideration of this Agreement is related to
DME's competitive activity, including commercial information, which if disclosed, would give
advantage to its competitors or prospective competitors, and thereafter, the City Council, by a
vote taken in said Closed Meeting, voted for approval of the Agreement, and
WHEREAS, the City Council has further determined that the "Agreement" to be entered
into by and between the City and Denton Garland Greenville Power Pool ("DGG") should be
excepted from any public disclosure, 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, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
S_,ECTION 1 That the recitations and findings set forth in the Preamble hereinabove are
hereby approved and made a part of this Ordinance
SECTION 2 That the City Manager is hereby authorized to execute an Agreement by
and between the City of Denton, Texas and the Denton Garland Greenville Power Pool, for the
City's acquisition of additional capacity and energy for calendar year 2001, in substantially the
form of the Agreement attached hereto and incorporated herewith by reference
SECTION 3 That following the execution and delivery of the Agreement, the City
Secretary is hereby directed to seal and maintain said Agreement in her custody and control, as a
document excepted from public disclosure under the provisions of Section 552 131 of the Texas
Government Code (the "Public Power Exception'), unless otherwise lawfully ordered to disclose
said Agreement
SECTION 4 That the expenditure of funds as provided in the attached Agreement is
hereby authorized
SECTION 5 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the � day of oC44&,4— , 2000
&h4l,e, &Ck
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
AP ?OVEDOA=S TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By ALN Q=Q
S \Our Documents\Ordmances\00\DGG DME Capacity Purchase 2001 Ord doc
GARLAND
September 19, 2000
Ms Sharon Mays
Denton Municipal Utilities
901-A Texas Street
Denton, TX 76201
Re 2001 Capacity Sale and Purchase
Dear Ms Mays
This letter is written to confirm the Denton Garland Greenville Power Pool (DGG) capacity sale by DGG
members the City of Garland and the Greenville Electric Utility System (Sellers) to DGG member the
City of Denton (Buyer) for the one year period beginning January 1, 2001
In addition to regular DGG economic dispatch functions, Sellers are willing to furnish Buyer the rights
to 40 MW of capacity, during each month of calendar year 2001, under the following terms
1 ) Buyer agrees to pay Sellers $180,000 each calendar month of 2001 Invoicing and payment will
be deemed made by adjustments to each monthly DGG Energy Summary — Preliminary
2) Sellers will split the revenues in accordance with a proportionate excess capacity calculation to
be made prior to October 1, 2000, and will provide Buyer with data on generation sources to
enable Buyer to include the capacity purchased in its Annual Planned Service Request
3) Buyer �grees to commit all of its generation resources to DGG economic dispatch operation, and
to operate such resources in accordance with the policies of the DGG P&O Committee, during
the entire term of the capacity sale
4) Sellers !have no obligation to deliver any energy or operating reserves by virtue of this capacity
sale Buyer and Sellers will continue to deliver, receive and price economy energy in accordance
with the policies of the DGG P&O Committee
5) Buyer recognizes that the offer to sell capacity hereunder reflects Sellers current price only to
purchasers i) purchasing a fixed amount of capacity for each month during calendar year 2001,
n) having no right to or call on any energy or operating reserves as a result of the capacity
purchase, and iii) willing to commit all of their generation assets to DGG joint operation during
the term of the capacity purchase
6 ) Buyer agrees that it will not resell or assign the rights to any capacity purchased hereunder from
Sellersiwithout the prior consent of Sellers