1976-051 AN ORDINANCE BY THE CITY COUNCIL OF THE
CITY OF DENTON RELATING TO THE
TRANSFER AND SALE OF CERTAIN PROPERTIES
AND PROPERTY RIGHTS BELONGING TO THIS
CITY TO THE TEXAS MUNICIPAL POWER AGENCY,
REPEALING AN ORDINANCE OF CITY OF DENTON,
DECLARING AN EMERGENCY, AND RESOLVING OTHER
MATTERS IN CONNECTION THEREWITH AND PROVIDING
AN EFFECTIVE DATE
WHEREAS, the TEXAS MUNICIPAL POWER AGENCY ("TMPA") has been
heretofore created and established as a municipal corporation, a
politIcal subdivision of the State of Texas, and a body politic and
corporate, by the Cities of Bryan, Denton, Garland and Greenville,
Texas ("The Cities"), and
WHEREAS, Brazos Eleotrlc Power Cooperative, Inc , ("Brazos")
ano the C~t~es are the ]o~nt owners of that certain tract of land
· n Hunt County, Texas, that ~s described ~n a deed in which they
are the grantees dated May 23, 1973, recorded ~n Volume 729, Page
749 of the Deed Records of Hunt County, Texas, together w~th the
fuel o~1 and truck terminal which ~s located thereon ("oll terminal"),
and
WHEREAS, pursuant to a common llgnlte fuel development plan
Brazos and the Cltles, by and through llgnlte leases, options to
lease, exploration contracts and other ~nstruments e~ecuted pursuant
to or ~n contemplation of a Llgnlte Jolnt Ownership Agreement dated
April 28, 1975, have conducted exploration for lignite and have
acquired jointly certain interests ~n real property ~n various
countles in Texas, and the lignite located ~n and under such real
property, in the name of Brazos Electric Power Cooperative as
Trustee for the Texas Munlclpal Power Pool, which agreement provides
that Brazos wlll not transfer or otherwise dispose of the interest
of a participant to such agreement without the written consent of
the partlclpan~, and
WHEREAS, TMPA, Brazos and Texas Power Pool, Inc ("TPPI"),
entered into an agreement dated October 30, 1975, entitled "Pre-
llminary Participation Agreement" pursuant to which additional
exploration has taken ulace and ~nterests have been acquired in
lignite through leases, optlons to lease or other instruments, with
t~tle to such ~nterests being held by TPPI as agent for TMPA and
Brazos, and TS~A and Brazos, and TPPI and Brazos have entered ~nto
other agreements for the development of fuel resources, planning
electrical generation facilities, and performing certain services in
furtherance of the Lignite Joint Ownership Agreement and the Pre-
llmlnary Partlclpatlon Agreement, and
WHEREAS, pursuant to the foregoing agreements and other joint
undertakings, the cities have acquired Interests in real property,
(the "lignite propertles") and have acquired the results of testing
and exploration for llgnlte (the "exploration results"), and have
developed plans for the development of fuel resources and generation
facilities, (the "fuel development programs") and
WHEREAS, by Memorandum of Agreement dated September 16, 1976,
between TMPA and Brazos, Brazos has agreed to convey to TMPA the
interests of Brazos ~n the Oil Terminal, the lignite properties, the
exploration results, and the fuel development programs in exchange
for the reimbursement to Brazos for capital contributions made by
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Brazos to the various joint pro3ects, and the assumption by T~A o~
all obligatlons of Brazos associated therewith, and
WHEREAS, TMPA has expressed a deslre and willingness to acquire
the Interest of the Cities and Brazos in the Oil Terminal, the
lignite properties, the exploration results, and the fuel development
programs in exchange for the relmbursement to all parties by TMPA
for the capital contributions made by each party to such projects,
and the assumption of all obligations associated therewith, and all
of such part~es have lndlcated an agreement that TMPA may better
admlnlster, handle, and own such properties, and that legal title
thereto should be vested in TMPA,
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
DENTON, TEXAS
SECTION 1 It is hereby found that the Interest of the City in
the properties described ~n the preamble hereof
(a) Could best be utllized and administered by Texas Mun~clpal
Power Agency, that such use and administration by Texas
Munlclpal Power Agency would be a h~gher public use and a
paramount public purpose s~nce the same could be accomplished
at a savings to the City, but without adversely affecting
the rights of the City under its agreements w~th Texas
Municipal Power Agency, and
(b) Are to be transferred by the voluntary action of this
Clty, rather than requiring Texas Municipal Power Agency
to exercise the power of eminent domain, and
(c) Are to be purchased by Texas Municipal Power Agency by the
payment to this C~ty of all capital contributions made by
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this City to such Joint projects, as heretofore agreed
upon, and the assumption of any obligations of this City
associated therewith, which the City Council finds will
represent replacement by property of equal value, and
(d) Are not to be used by this City for the purpose of pro-
vldlng fuel for the electric generating facilities of the
City (insofar as the lignite is concerned) since this City
has determined that lignite fired generation facilities
are not to be constructed by this City but may best be
constructed by Texas Municipal Power Agency for the
benefit of or use by all of the Cities mentioned in the
preamble hereof
SECTION 2 At such tlme as conveyances, assIgnments or other
instruments of transfer have been prepared and approved by the City
Attorney, the Mayor is authorized to execute such ~nstruments of
conveyance, assignment or transfer as may be necessary to convey,
assign and transfer to Texas Municipal Power Agency the following
(a) All right, title and interest of th~s City in the fuel oll
and truck terminal,
(b) The undivided Interest of th~s C~ty ~n the l~gnlte prop-
ertles whether through options for lignite leases or for
purchase of the fee title, lignite leases or purchases of
the fee title or other items, including all of such
interests in real property that have been acquired in the
name of Brazos Electric Power Cooperative, Inc , or Texas
Power Pool, Inc , as trustees or agents for this City,
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(C) The undlvlded interest of thls City in the Bryan llgnlte
fuel development program and the other fuel development
programs and in the exploration results ~nvolv~ng, among
others, Van Zandt, Marion, Madlson, Brazos, Grlmes,
Burleson, Fayette, Wood, Hopkins and Franklin Counties,
Texas, ~ncluding all logs, cores, surveys, tests, reports
and other ~nformat~on developed pursuant thereto, and
all claims, interests, rights and causes of action connected
therewith
SECTION ,3 Brazos Electrlc Power Coopertlve, Inc , and Texas
Power Pool, Inc , are hereby authorized, to the extent necessary, to
execute, on behalf of this Clty, conveyances, assignments or other
· nstruments of transfer to Texas Municipal Power Agency conveying,
assigning and transferring any interests they may hold as Trustee or
Agent for th~s Clty In any property or property £ights described in
Section 2, above
SECTION 4 The conveyances, assignments and transfers to be
executed by the Mayor pursuant to Section 2, above, shall be de-
llvered to Texas Municipal Power Agency when payment is made to th~s
Clty of equal value, but pending such payment and delivery Texas
Municipal Power Agency, as agent for th~s City, is hereby authorized
to use, manage and administer such property and property r~ghts on
behalf of this Clty wlthout further authorization than th~s ordinance
SECTION 5 Ordinance Number 75-50 , adopted the
2nd day of December , 19 75 , is hereby repealed
SECTION 6 All the recitals and preamble here~nabove stated
are found to be true and correct
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SECTION 7 It is officially found and determined that this
meeting of the Clty Councll ~s open to the public as required by law
and that public not~ce of the tlme, place and purpose of the meeting
was g~ven as required by law
SECTION 8 The public importance of this measure and the fact
that it ls to the best lnterest of the C~ty to accomplish the
transfers here~n contemplated at the earliest posslble date con-
stltutes and creates an emergency and an urgent public necessity,
requlr~ng that any rule providing for ordinances to be read more
than one t~me or at more than one meeting of the City Council be
suspended, and requiring that thls ordlnance be passed and take
effect as an emergency measure, and any such rules or provisions are
hereby suspended
APPROVED and ADOPTED th~s ~ay of ~ , 1976
MAYOR OF THE C ON, TEXAS
~KOOKS 'HOLT, CITY SECRETARx
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
CITY OF DENTON, TEXAS
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