1999-374 NOTE' Agreement is exempt from public disclosure under provisions of
Section 552 131 of the Texas Government Code (Public Power Exception)
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 THEI CITY'S ACQUISITION OF PEAKING CAPACITY AND ENERGY FOR
CALENDAR YEAR 2000, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR,
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Denton Munmlpal Electric ("DME") ~s a mumc~pally-owned electric utthty
whmh qualifies as a "Public Power Utdxty" under the prowmons of Senate Bill 7 enacted by the
76th Texas Legislature DME Staff has determined that ~t ~s necessary at th~s t~me to acqmre
addlt~onal, peaking capacity and energy for calendar year 2000, ~n order that it can mmntmn
sufficient firm capamty and energy to meet its dady megawatt load plus reserve megawatt
capacity requirements m accordance with Electric Rehablhty Council of Texas ("ERCOT")
Operating Grades, and such acqmmtlon further provides for more reliable electric service at peak
load times to DME's customers, and
WHEREAS, the City's purchase of electric peaking capamty and energy provided for ~n
the letter' Agreement dated August 24, 1999 ("Agreement") ~s exempted from competitive
bidding r,qmromants as an expenditure for electnmty, as provided by Section 252 022 (a)(15) of
the Texas Local Government Code, and
WHEREAS, m accordance with the prov~mons of Section 551 086 of the Texas
Government Code, after pubhc notice, the City Councd, a "Pubhc Power Utility Govemmg
Body" trader Senate Bill 7, has discussed, deliberated, and conmdered the matter of thru
Agreemeflt in a Closed Meeting on the 12th day of October, 1999, after determ~mng by a
prehm~nary majority vote of its members, that the consideration of this Agreement ~s related to
DME's competitive activity, including commercial ~nformation, which ~f dmclosed, would give
advantage to its competitors or prospective competitors, and thereafter, the City Council, by a
vote taken in smd Closed Meeting, voted for approval of the Agreement, and
WHEREAS, the City Counml has further determined that the "Agreement" to be entered
~nto by and between the C~ty and Denton Garland Greenville Power Pool ("DGG") should be
exceptedl from any public dmclosure, as permitted by the provm~ons of Section 552 131 of the
Texas Government Code, as a document that ~s 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 C~ty Counml deems ~t m the pubhc ~nterest for the C~ty of Denton to
enter into the Agreement, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the remtatmns and finchngs set forth m the Preamble here~nabove are
hereby approved and made a part of this Ordanance
SECTION 2 That the C~ty Manager ~s hereby authorized to execute an Agreement by
and between the City of Denton, Texas and Denton Garland Greenwlle Power Pool, for the
City's acquisition of addatxonal peaking capacity and energy for calendar year 2000, in
substantially the form of the Agreement attached hereto and incorporated herewath by reference
SECTION 3 That following the execution and dehvery of the Agreement, the C~ty
Secretary is hereby directed to seal and mamtmn smd Agreement in her custody and control, as a
document excepted from public disclosure under the provisions of Sectaon 552 131 of the Texas
Government Code (the "Public Power Exceptmn"), unless otherwise lawfully ordered to dasclose
said Agreement
SECTION 4 That the expenditure of funds as provided an the attached Agreement as
hereby anthonzed
SECTION 5 That this ordinance shall become effective ammedlately upon its passage
and approval
PASSED AND APPROVED this the /~ c/C-day of ~)&.~ ~ , 1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By (~g,l~ll~ .]L-~
HERBERT L PROUTY, CITY ATTORNEY
S \Our Docur0onts\Ordlnances\9 9kDGG - DME Capacity Purchase Ord doc