1996-277J \NPDOCS\ORD\EASC ORD
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER OF THE CITY OF DENTON, TEXAS TO EXECUTE ANY AND ALL
DOCUMENTS NECESSARY AND INCIDENT TO THE CITY OF DENTON ELECTRIC
UTILITY BECOMING A MEMBER OF ELECTRIC AMERICA SERVICES COMPANY,
INC.; AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PURPOSE OF
PAYMENT BY THE CITY FOR ANNUAL DUES TO ENERGY AMERICA SERVICES
COMPANY, INC.; AUTHORIZING THE APPOINTMENT OF THE REPRESENTATIVE OF
THE CITY OF DENTON, TEXAS TO ENERGY AMERICA SERVICES COMPANY, INC.,
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the new developments of deregulation, open access,
customer choice, stranded Investment and competition emerging ~n
the energy industry are problems for the City of Denton Electric
Utility, and these problems are shared by numerous other public
utilities nationwide; and ~t being for a public purpose and
Indispensable to the best interest of all public utilities to
combine their economic and technical resources necessary to resolve
such problems on a basis consistent with the common interest of
such similarity situated public utilities and to preserve, to the
extent possible, their autonomy and freedom of choice as public
entities engaged in business as authorized by their ~ndivldual
State Laws; and
WHEREAS, the Energy America Services Company, Inc. ("EASC"),
organized under the laws of the State of Nebraska, is a tax-exempt
corporation under the provisions of 26 U.S.C. §501(c)(3); whose
members are public utilities, joint power authorities, or other
government instrumentalities; and is a corporation organized for
the purpose of assisting membership in the resolution of the
problems set forth above; and the resulting benefits to public
utilities to be realized from such membership ~n EASC will be of
material importance and assistance to publlc ut~lltles in dealing
with problems in the f~elds of energy.
WHEREAS, the stated mission of EASC is to take advantage of the
rapidly changing, increasingly competitive marketplace by pooling
the resources of public gas and electric systems to share services
designed for the future, by establishing competitive positioning
programs and by pooling Innovative technology and products among
lts nationwide membership; and
WHEREAS, in order to take advantage of the rapidly changing
environment in the electric utility ~ndustry, a public utility the
size of the City of Denton's electric utility must acquire a great
deal of knowledge of the electric energy market in order to
identify, negotiate, and make the most advantageous deals attaln-
able in the market; and
WHEREAS, the City of Denton recognizes the necessity of
combining resources and knowledge w~th other public electric
utilities in order to effectively and competitively function, and
expects to derive substantial benefit and advantage from its
membership in EASC and accordingly, desires to become a member of
EASC; and
WHEREAS, in order to comply with the Bylaws and the rules of
EASC, the city of Denton is required to pay annual dues; and
WHEREAS, the Public Utilities Board of the City of Denton and
the City Manager have reviewed and recommended that the City
Council approve the City of Denton Electric Utility joining Energy
America Services Company, Inc. as a Member and the payment of such
annual dues; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City of Denton Electric Utility is hereby
authorized to 3oin Energy America Services Company, Inc. as a
Member; and that the City Manager is authorized to execute any and
all documents necessary and incident to the c~ty of Denton Electric
Utility becoming a member of Energy America Services Company, Inc.
SECTION II. That the expenditure of funds in the amount of
$5,000.00 to be paid to Energy America Services Company, Inc. is
hereby authorized.
SECTION III. That Sharon Mays, Electric Utility Director, C~ty
of Denton, Texas is approved, and is hereby designated and
appointed as the representative of the City of Denton to Energy
America Services Company, Inc.
SECTION IV. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the ,~~ day of~~,~ 1996
JACK~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
BY: ' '~ ~