1987-1531973L
NO
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DENTON APPROVING
AN AMENDMBNT TO THE POWER SALES CONTRACT BY AND BETWEEN TEXAS
MUNICIPAL POWER AGENCY, THE CITIES OF GARLAND, DENTON, BRYAN AND
GREBNVILLE, AND PROVIDING FOR ITS EXECUTION ON BEHALF OF THIS
CITY, ENACTING OTHER PROVISIONS INCIDENT AND RELATED TO THE
PURPOSE OF THE ORDINANCE, REPEALING CONFLICTING ORDINANCES OR
RESOLUTIONS, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton, Texas has executed with each of
the Cities of Bryan, Garland, and Greenville and Texas Municipal
Power Agency a Power Sales Contract dated September 1, 1976, and
WHEREAS, the Cities have various opportunities to construct
or acquire generation facilities, extremely limited in size and
scope, using alternative fuels which would provide economical
power and energy, and
WHEREAS, th~s governing body has and does hereby determine
that it is in the best interest for the City and its inhabitants
to approve the same, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That attached hereto and made a part hereof for
all purposes, is a copy of an amendment to the Power Sales
Contract
SECTION II That the amendment to the Power Sales Contract
by and between the Texas Municipal Power Agency and this City,
the same being identical contracts between said Agency and the
Cities of Bryan, Denton, Garland, and Greenville, being attached
hereto, is hereby approved so long as such changes are not
substantial and do not affect the substantive intent of the
document as attached hereto The Mayor of this City is hereby
authorized to execute said contract as the act and deed of this
City and its governing body and may, upon the advice of the City
Manager and City Attorney, approve minor changes to the same so
long as such changes are not substantial and do not affect the
substantive intent of the document as attached hereto
SECTION III All ordinances or other actions heretofore
taken Which are or may be contrary to the provisions hereto or
the provls~ons of the amendment to the Power Sales Contract
authorized to be executed are hereby repealed
SECTION IV That thxs ordinance shall become e£fectlve
~mmediately upon its passage and approyal
PASSED AND APPROVED this the/~day of , 1987
ATTEST
JEN~F}{I~ ~L'TERS, CITY S'ECRETARY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
AMENDMENT TO
POWER SALES CONTRACT
BETWEEN
TEXAS MUNICIPAL POWER AGENCY
AND
CITY OF BRYAN, TEXAS
CITY OF DENTON, TEXAS
CITY OF GARLAND, TEXAS
CITY OF GREENVILLE, TEXAS
This amendment to that certain contract, made and entered
into as of the 1st day of September, 1976, "the Contract" by and
between the Texas Municipal Power Agency, a municipal Corporation
and political subdivision of the State of Texas herein called
"Agency" and the City of Bryan, the City of Denton, the City of
Garland and the City of Greenville, Texas each of which cities is
a municipal corporation of the State of Texas and a home rule
city herein collectively called ,'Cities" or individually called
"City"
WITNESSETH
WHEREAS, as of September 1, 1976, the Cities of Bryan,
Denton, Garland and Greenville and Texas Municipal Power Agency,
executed a Power Sales Contract (the "PSK"), and
WHEREAS, the Cities have various opportunities to construct
or acquire small generation facilities, using alternative fuels
which would provide economical Power and Energy to each City, and
WHEREAS, the Agency has obtained the consent of Texas Commence
Bank Association and National Australia Bank to such amendment,
NOW, THEREFORE, in consideration of the mutual undertakings
herein contained, the Agency and each City agree as follows
I
Section 3(a) of the Contract is hereby amended to read as
follows
Section 3 Sale and Purchase of Power and Energy
(a} During the time this Section is applicable to such City,
each City agrees as follows
(1) Each City shall purchase and receive from the Agency
all Power and Energy which it shall require for the
operation of its electric system in excess of the
amount {1) supplied by those generation and transmission
facilities (in this subsection 3(a) called the "clause
(1} Facilities"), if any, owned by it on September 1,
1976, including, as parts of any clause (1) Facilities,
those generating and transmission facilities, if any,
under construction on such date, and Improvements or
extensions of such generating facilities made or to be
made after September 1, 1976, which ~ncrease the Rated
Capacity of same so long as the increase during any
period of two successive Contract Years does not exceed
10% of the same's Rated Capacity at the beginning of such
period, provided the Cities and the Agency may, in
writing, waive such 10% limit, (il) supplied from one or
more generation facilities (in this subsection
called "clause (ii) Facilities"), if any, each of which
is primarily fueled from and the construction and
operation of which is incidental to the disposal of solid
waste and which was or is constructed after September 1,
1976, and owned by one or more of the Cities, including,
as parts of any clause {il) Facility, any transmission
facilities that are necessary for the transmission of
Power and Energy therefrom, and (Ill) supplied from any
other generation facilities (in this subsection
called the "clause (ill) Facilities" and including, as
parts of any such clause (ill) Facilities, any
transmission facilities that are necessary for the
transmission of Power and Energy therefrom), if any,
owned by the City which are acquired or on which
construction is begun after January 1, 1988, so long as
(A) the Rated Capacity of any one such clause
Facility does not exceed 3,000 kilowatts, (B) the City
does not, during the term of this Contract, own or have
an interest in two or more clause (ill) Facilities that
have a combined Rated Capacity in excess of S,000 kilo-
watts, and (C) no clause (l~l) Facility is fueled by
lignite, coal, natural gas, o11, nuclear fuel, or any
purchased fuels, and provided that each City stipulates
and agrees with the Agency that Power and Energy
generated by clause (~ll) Facilities shall not be taken
into or transmitted through any of the C~ty's transmission
lines or used by the City for the operation of its
electrical system except to the extent expressly permitted
under the provisions of subsection 3(A)(4) below
(2} Each City binds itself to pay for all Power and Energy
purchased or otherwise acquired by it from the Agency
pursuant to this Section 3, said payment to be made at
the rates and charges established pursuant to Section 7
of this Contract
($) Notwithstanding the foregoing provisions of subsection
3(a)(1) above, each City reserves and shall have the
PAGE 2
right to purchase or exchange Power or Energy (1) on an
emergency, maintenance, or stand-by basis or (il) on the
basis of economic dispatch between the Cities and Brazos
Electric Power Cooperative, Inc (Srazos)~ or any one or
more of such entities or (iii) under the existing pooling
agreement between the Cities and Brazos and future
pooling agreements among the foregoing and others, a11,
or any combination thereof, and the Agency, provided that
each City stipulates and agrees with the Agency that
Power and Energy generated by clause (ill) Facilities
shall not be purchased, exchanged, taken into or trans-
mitted through any of the City's transmission lines or
used by the City for the operation of its electrical
system except to the extent expressly permitted under the
provisions of subsection 3(a)(4) below
Each City agrees that Power and Energy generated by
clause (111) Facilities (regardless of which City owns
such clause (iii) Facilities) shall not be taken into or
transmitted through any of such City's transmission lines
or used by such City for the operation of its electrical
system or exchanged or sold by such City to any other
City or other entity except as follows
(I) Power and Energy generated by clause (iii) Facil-
ities may be taken and used by a City pursuant to
this subparagraph (I) to the extent, and only to
the extent, required to supply the excess, if any,
of the City's requirements for Power and Energy at
any time above the maximum amount of Power and
Energy which is then available or could then be
made available (if requested) from the Agency to
supply such requirements, or
(II) Power and Energy generated by clause (111) Facil-
ities may be taken and used by a City pursuant to
this subparagraph (II) during any month to the
extent, and only to the extent (if any), that the
City reduces the amount of Power and Energy which
would otherwise have been taken and used by the
City during such month as authorized in subsection
$(a)(1) or subsection 3(a)($) hereof from then
existing clause (1] Facilities or clause (11)
Facilities which are capable of generating such
Power and Energy at a cost to such City equal to or
less than the cost of such Power and Energy if it
had been purchased from the Agency, or
(III) A City which owns or operates clause (111) Facil-
ities may generate Power and Energy in such
facilities and transmit same through 1ts trans-
mission lines to the extent, and on1¥ to the
PAGE 3
extent, that such City or other Cities are auth-
orized and permitted to use such Power and Energy
for the operation of its or their electrical system
under the foregoing provisions of subparagraph (I)
or subparagraph (II) of this subsection 3(a)(4).
Each City stipulates and acknowledges that the purpose and
intent of the foregoing subparagraphs (I), (II) and (III) are to
insure and require that, during any month while a City takes and
uses Power and Energy generated from anyone or more clause (iii)
Facilities, the amount of Power and Energy purchased and received
by such City from the Agency during such month will never be
reduced below the amount thereof which would have been purchased
and received by such City from the Agency if no clause (i i i)
Facilities were ever owned or constructed by any of the Cities.
II.
All other terms, provisions, conditions, and obligations of
the contract between the Cities and the Agency shall remain in
full force and effect, and said contract and the Amendment
Agreement shall be construed together as a single contractual
agreement.
IN WITNESS WHEREOF, the parties heretQ have caused this
Amendment to be executed in their corporate names and their
corporate seals affixed, all by the proper officer dUly
authorized thereunto, as of the day and year first hereinabove
written.
TEXAS MUNICIPAL POWER AGENCY
BY:
/u-t &j
/'
ATTEST:
BY: Jo~
SEeR ARY
CITY OF BRYAN, TEXAS
BY:~~ ~
PAGE 4
ATTEST:
BY: ~Mli)~QQQtt
CRETAR \ "
ATTEST:
BY, ~ !t)t1.ff<UJ
ATTEST:
BY:
~L~J &uA_~~
SECRETARY
::"'"~~~
SE R Y
CITY OF DENTON, TEXAS
." ~~
CITY OF ~ARLAND. TEXA~ .
~~^\)\~UO\~
MAYOR
CITY OF GREENVILLE. TEXAS
BY,&g~
MAYOR
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