HomeMy WebLinkAbout1999-475NOTE. Agreement is exempt from public disclosure under provisions of
Section 552.131 of the Texas Government Code (Public Power Exception)
ORDINANCE NO 99- 4r/
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AN INTERRRUPTIBLE NATURAL GAS TRANSPORTATION
AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND TXU LONE STAR
PIPELINE, A DIVISION OF TXU GAS COMPANY, PERTAINING TO NATURAL GAS
REQUIREMENTS FURNISHED TO THE SPENCER STEAM POWER PLANT,
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
761h Texas Legislature DME Staff has determined that it is necessary at this time to acquire
natural gas to provide for and supply the natural gas fuel needs and requirements for its
Production Division located at the Spencer Steam Power Plant in order for it to produce and
generate electric energy to DME's customers, and
WHEREAS, the gas utility services provided for in the Interruptible Natural Gas
Transportation Agreement ("Agreement") are exempted from competitive bidding requirements
under the sole source exception to the competitive bidding statute, as gas utility services that are
available from one source because of natural monopolies, as provided by Section 252 022
(a)(7)(C) 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 14th day of December, 1999, after determining by a
preliminary malonty 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 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 TXU Lone Star Pipeline, a Division of TXU Gas Company, a
Texas Corporation ("Lone Star") 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,
0
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
SSECTION 2 That the City Manager is hereby authorized to execute an Interruptible
Natural Gas Transportation Agreement ("Agreement') by and between the City of Denton,
Texas and TXU Lone Star Pipeline, a Division of TXU Gas Company, a Texas Corporation, for
natural gas requirements furnished to the Spencer Steam Power Plant of Denton Municipal
Electric, 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 /1 / /
PASSED AND APPROVED this the ��l' `— day of //IDPnQ/f/ 1999
JACK WL ,ER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
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