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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)