1976-034 AN ORDINANCE by the City Counczl of the C~ty of
Denton relating to the relatlonshzp of the Czty of
Denton wzth the Texas Munzc~pal Power Agency,
approvzng the construction of an electrzc generatzng
facility by the Agency, to be known as Bryan
Lzgnzte Number One, as well as certazn System
Development and Relzabzlzty Expenditures and
Development Pro3ects and the zssuance of bonds by
the said Agency for such purposes, approving a
Power Sales Contract and providzng for its ~xecution
on behalf of this City, enactzng other provisions
zncldent and related to the purpose of the ordznance,
and declaring an emergency
WHEREAS, thzs governing body has recezved the request
of the Board of Directors of the Texas Municzpal Power
Agency that thzs governing body approve (1) the construction
of an electric generating faczlzty by the Agency, to be
k~own as Bryan Lignite Number One, and (2) certain System
Dgvelopment and Reliabzlity Expenditures, and (3) certain
Development Pro3ects, and (4) a Power Sales Contract, and
WHEREAS, th~s governzng body has and does hereby determzne
t~at zt zs zn the best znterest for the Czty and ~ts znhabztants
tQ approve the same and the issuance of bonds by the Agency
t~ provide a portion of the funds whzch wzll be requzred,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON,
TEXAS, HEREBY ORDAINS
SECTION 1 That Bryan Lmgnzte Number One zs hereby
approve---~ as a project of the Texas Munzczpal Power Agency,
such project being described as follows
An electric generating plant (zncludzng land), steam
boiler, steam turbzne, electric generator, coolzng
facilities, assoczated transmission, transfermatzon and
swztch~ng faczlztles so as to connect the plant to
existzng or proposed faczlzt~es, a lzgnzte mzne,
railroad siding, shops, warehouses, constructzon camp,
office, dwellings and other structures, fzxtures,
equipment, supplies or other items whzch the Board of
Directors of,the Agency f~nds are needed or useful in
connection with the constructzon, maintenance0 and
operation of the plant (and prov~dzng fuel for the
same) so the eleetrzc generating plant shall be placed
in servzce as an operatzng utzl~ty
It zs antzcipated that such lnztial generating plant
will include a steam turbine actzn~ as the przme mover of an
electric generator of approxzmately 400,000 kzlowatts (net)
The steam bomler, steam turbine and electrzc generator will
belof the outdoor type wzth all other equzpment relating to
plant servzces and control enclosed zn approprzate buildzngs
It is planned that plant cooling facilltmes are to be
zn the form of a pond supplzed from underground water or the
wafer purchased from an existing water-storzng entzty in the
area for make-up water or by zmpoundzng water
The strip mining operatzon zncludes equzpment for
excavation and transportation The Pro3ect includes communication
equipment, all necessary permmts, lzcenses, developmental
rights, easements, rzght of way, approvals, certzfzcates of
state and federal agenczes where applicable, real estate and
interest in properties where necessary
SECTION 2 That the ~ssuance of bonds of the agency zn
the principal amount of $50,000,000 zs hereby approved, t
being understood that the bond proceeds are to be expended
for the purposes shown below
I Appllcatzon of Proceeds (Estzmated)
Construction Fund $27,050,855
Capztalized Interest (2 years
at 7-1/2~) 7,500,000
Capztalized Reserve 4,074,145
Legal, F~scal 750~000
Refunding of Serzes 1975 Bonds* 10~625~000
TOTAL $501000~000
*Plus accrued, unpazd ~nterest thereon
II Applzcat~on of Const~uctzon Fund
A Pro3ects - $22,664,000 1 Bryan Lzgnzte
B System Developmgnt & Realmabzlzty $3,386,885
1 Transmission
a Greenvzlle/Olznger Line
b Bryan Capacztor Bank
c. Bryan Interconnectzon
d Garland 345 MVA Lzne
(right of way)
e Denton Interconnectlon
2 Other
a Fuel exploration and
acquisition Program
b Mzcrowave Communlcatzons System
c Lconomzc Dispatch System
c Development Pro3ects - $1,000,000 1 Vzllage Bend Pumped Storage
2 Miscellaneous Prelzminary Pro3ects
That the estimated expendztures are suboect to ad3ustment
and finalzzation as preliminary estimates at such t~me as
the bonds of the Agency are sold and defzn~tzve construction
bids are received
SECTION 3 That the System Development and Reliability
Expenditures include
(a) Olznger - Greenville Transmisszon Lzne the
estimated balance required to provzde survey, right of way,
lzne construction, ~nterconnectzon and englneerzng for a new
20 mzle 138 KV transmission lzne form Greenville to Olinger
(b) Bryan Capacitors Bank - to prevent Bryan from
egperienczng severe voltage drop durzng certazn pooling
contingencies, 21 6 MVAR of 69 KV capacztor banks are to be
placed in servzce
(c) Bryan interconnection - a 20 mile 138 KV line from
Hearne to Bryan to provide transmission lnterconnection and
reliable back up for the new 100 MW Dansby unzt scheduled
for completzon zn 1978
(d) Garland 345 MVA line (right of way) - to deliver
power from Comanche Peak and Bryan Lzgnzte Number One to
Garland and Greenville, a 345 KV lzne, two double circuit
138 KV lines, and a 500 MVA 345/138 KV autotransformer will
be required A 345 KV substation is to be located in Northeast
Garland Rzght of way ~s to be acquzred at thzs time since
the completzon date is now scheduled as June, 1980
(e) Denton interconnection - zmprovemant program to
p~ovide firm transmission supply to over 231 MW of load in
Denton and Roanoke area, including the conversion of portions
of an existing 69 KV transmisszon system ~o 138 KV operation
amd two new 138 KV interconnections Rights of way and
substation site purchases are to proceed immediately
3
(f) Fuel exploration and acquz~ztzon program - the
search for fuel for Pro3ects other than Bryan Lzgnite Number
One
, (g) Microwave Communzcatlon - contlnuatzon of the
deuelopment of a co~,~nication system begun wzth the initzal
ftmancmng of the Agency
(h) Economic Dispatch Studies - contznuation of studies
(b~gun with proceeds of initial f~nanczng by the Agency)
operating the most efficzent and economzcal generating
units
The System Development and Relzabzlity Expendztures are
hereby approved
SECTION 4 That the Development Pro3ects hereinabove
lilsted are hereby approved
i SECTION 5 That the form of bond resolution (being
designated as "Proof of 3-29-76") whzch embodzes the suggested
terms and conditions under which $50,000,000 zn principal
amount of the bonds of the Agency shall be issued (such
b~nds to be dated September 1, 1976, wzth interest payable
semiannually thereafter on March 1 and September 1 of each
~ar~ is hereby approved It zs understood that certain
zna£ details of the bonds wzll be inserted in Article II
aqd other blanks completed, but no substantial change is to
b~ made in Article III through Article VI nor shall any
c~ange be made which would cause the bond resolution to be
contrary to the Power Sales Contract
SECTION 6 That the Power Sales Contract by and between
t~e Texas Municipal Power Agency and thzs City (the same
being identical contracts between said Agency and the Cities
of Bryan, Denton, Garland, and Greenville), being attached
hereto as Exhibit A, is hereby approved The Mayor of this
C~ty is hereby authorized to execute sazd contract as the
act and deed of this City and zts governzng body
4
SECTION 7 That the publzc zmportance of thzs measure
and the fact that it ms to the best znterest of the Czty to
approve certazn documents and the executzon of a Power Sales
Comtract wzth the Texas Munmczpal Power Agency at the
e~rliest posszble time zn order that the joint project of
the Cities of Bryan, Denton, Garland and Greenvmlle (to be
a6complished through said Agency) may proceed, constztutes
and creates an emergency and urgent public necesszty requiring
that any rule provzding for ordznances to be read more than
one time or at more than one meeting of the Czty Council be
sdspended, and requiring that thzs ordznance be passed and
take effect as an emergency measure, and any such rules or
provisxons are accordingly suspended and thms ordinance is
passed as an emergency measure, and shall take effect and be
in full force from and after zts passage, and zt is so
ordained
PASSED AND APPROVED, this the 2~th day of July, 1976
Mayor, City of~Texas
ATTEST
n
Texas
~Qf~y of Dento ,
(City Seal)
CFRTIFICATE OF CITY SECRETARY
THE STATE OF TEXAS
COUNTY OF DENTON
CITY OF DENTON
I, the undersigned, City Secretary of the City of Denton,
Texas, DO HEREBY CERTIFY that according to the records of the
City of Denton, of which I am custodian, that
] The attached ordinance is a true and correct
copy of an ordinance adopted by the governing
bod~T of the City of Denton on the ~th day of
July, 1976, and 3~
2 At ~uch meeting
(a) a quorum of the governing body was present
in that ~-members of said governing body
were in a--~tendance at ~L~ch meeting when the
question of the adoption of the ordinance was
called for and placed to a vote, and
(b) ~ members of sa~d governing body voted for
the final adoption of such ordinance and _~
members of ~a~d governing body voted against
its adoption, and
(c) the said ordinance was adopted only after a
motion was made that the same be adopted and
the seconding of such motion, and
3 Prior to such meeting
(a) notice of the time, place, sub3ect and purpose
of the meeting had been posted at the City Hall
or Municipal Building on the bulletin board
where such notices are customarily posted for
at least three days prior to the date of such
meeting, and
(b) actual notice of the time, place, subject and
purpose of the meeting had been given to each
member of the governing body of the City in
that:
(1) the undersigned gave actual verbal
notice or
(ii) caused a written notice to be mailed,
postage prepaid to the home address
ok each m~mber of such governing body,
and
4 A true copy of the notice of meeting to which
reference is made in paragraphs 3(a) and 3(b)(zi)
is attached
5 The members and officers of the governing body of
the City of Denton as of the time of the passage of
such ordinance were
ELINOR HUGHES MAYOR
BILL NASH )
RAY STEPHENS )
JOE MITCHELL ) COUNCILMEN
BEN IVEY, JR )
and the following persons hold the respective
office listed after their name
JAMES W (JIM) WHITE CITY MANAGER
BROOKS HOLT CITY SECRETARY
PAUL ISHAM CITY ATTORNEY
and the following persons are those zndividuals
who have been designated by the Czty of Denton as
its members on the Board of Dzrectors of the Texas
Munzclpal Power Agency
JAMES W (JIM) WHITE and
E B TULLOS
6 That on the 8th day of May, 1975, the City of Denton,
Texas, owned and operated its electric light and power
system, including the faczlities for the generation of
electric power and on said date the City was actually
engaged in the generation and sale of electrzc energy
to the public, and
7 The City of Denton is currently operating as a home
rule City under the provisions of Article XI, Section 5
of the Constitution of the State of Texas, having
adopted a home rule charter thereunder, and that the
home rule charter of the City has not been amended
since the .~f~. day of ~ ~, 19_~
TO CERTIFY WHICH, witness my official signature and ~he
seal of said City this ~th day of July, 1976
SzP//.~ ~{~, City of Denton,
Texas
(City Seal)