1977-048NO 17-
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, "CITY"
RELATING TO THE TERMINATION OF THE EXISTING GAS FUEL CONTRACTS UNDER
THE TERMS OF WHICH THE CITY PURCHASES GAS FOR ITS GENERATING PLANTS,
AGREEMENTS AUTHORIZING THE SETTLEMENT OF CERTAIN DISPUTES WITH THE
GAS SUPPLIERS FOR ITS GENERATING PLANTS AND THE EXECUTION THEREOF ON
BEHALF OF THE CITY, A NEW GAS FUEL CONTRACT AND A GAS TRANSFER AGREE-
MENT AND THE EXECUTION THEREOF ON BEHALF OF THE CITY, ENACTING OTHER
PROVISIONS INCIDENT AND RELATED TO THE PURPOSE OF THE ORDINANCE, AND
DECLARING AN EMERGENCY
WHEREAS, the City purchases gas to fuel its generating plants
from Lone Star Gas Company ("Lone Star") and Delhi Gas Pipeline Cor-
poration ("Delhi") under contracts dated the 31st day of October,
1966, and June 6, 1973, respectively, and
WHEREAS, in order (1) to secure a longer term and more flexible
gas supply contract, (2) to make it possible to economize through
economic dispatch and (3) to settle certain disputes between the City
and Lone Star and Delhi, it is in the best interest of the City to
terminate its existing contracts with Lone Star and Delhi and to
enter a new gas purchase agreement with Lone Star as well as a gas
transfer agreement with Lone Star and three other cities,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DENTON, TEXAS
SECTION I
That all of the recitals and preambles hereinabove stated are
found to be true and correct
SECTION II
That the attached agreement between the City and Lone Star Gas
Company styled "Gas Sales Contract' be and is hereby approved and
the Mayor of the City be and is hereby authorized to execute multiple
original copies of said agreement in substantially the attached form
and deliver the same to the parties thereto, for, on behalf of and
in the name of the City, as the act and deed of the City and its
governing body
SECTION III
That the attached agreement between the City, Lone Star and
three other cities styled "Transfer of Gas Agreement" be and is here-
by approved and the Mayor of the City be and is hereby authorized to
execute multiple original copies of said agreement and deliver the
same to the parties thereto, for, on behalf of and in the name of
the City, as the act and deed of the City and its governing body
SECTION IV
That the attached agreement between the City, Delhi, Brazos
Electric Power Cooperative, Inc ("Brazos") and three other cities
styled "Agreement of Termination and General Release" be and is here-
by approved and the Mayor of the City be and is hereby authorized to
execute multiple original copies of said agreement in substantially
the attached form and deliver the same to the parties thereto, for,
on behalf of and in the name of the City, as the act and deed of the
City and its governing body
SECTION V
That the attached agreement between the City, Lone Star, Delhi,
Brazos and three other cities styled "Contingent Settlement Agreement"
be and is hereby approved and the Mayor of the City be and is hereby
authorized to execute multiple original copies of said agreement in
substantially the attached form and deliver the same to the parties
thereto, for, on behalf of and in the name of the City, as the act
and deed of the City and its governing body
SECTION VI
That the attached memorandum of intent between the City, Texas
Municipal Power Agency ("Agency") and three other cities styled
"Economic Dispatch Agreement" concerning effectuation of economies
through economic dispatch of electrical power and energy be and is
hereby approved and the Mayor of the City be and is hereby authorized
to execute multiple original copies of said agreement in substantially
the attached form and deliver the same to the parties thereto, for,
on behalf of and in the name of the City, as the act and deed of the
City and its governing body
SECTION VII
That it is officially found and determined that this meeting of
the City Council is open to the public as required by law and the
public notice of the time, place and purpose of said meeting was
given as required by law
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SECTION VIII
That the public importance of this measure and the fact that
it is to the best interest of the City to approve the aforementioned
agreements and the execution thereof at the earliest possible time
in order to secure a longer term and more flexible supply of gas,
constitutes and creates an emergency and urgent public necessity re-
quiring that this ordinance take effect and be in full force from
and after its passage, and it is so ordained
J7ii
PASSED AND APPROVED this the day of September, A D 1977
CITY OF DENTON, TEXAS
ATTEST ,
BiKWKS r
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
AI FUR ry
CITY OF DENTON, TEXAS
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