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2013-106 ORDINANCE NO. 2013-106 i I AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ACCEPTING FOUR CONVEYANCES OF ELECTRIC TRANSMISSION OFF-SYSTEM FACILITIES BEING INTERESTS IN REAL PROPERTY OWNED OF RECORD BY TEXAS MUNICIPAL POWER AGENCY, HOWEVER, BEING HELD IN TRUST FOR THE BENEFIT OF THE CITY OF BRYAN, THE CITY OF DENTON, THE CITY OF GARLAND AND THE CITY OF GREENVILLE, TEXAS; WHICH CONVEYANCES ARE EVIDENCED BY: (A) BILL OF SALE, ASSIGNMENT OF EASEMENTS AND QUITCLAIM REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN MONTAGUE COUNTY, TEXAS; (B) BILL OF SALE, ASSIGNMENT OF EASEMENTS AND GENERAL WARRANTY DEED REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN WISE COUNTY, TEXAS; (C) BILLS OF SALE AND ASSIGNMENT OF EASEMENTS REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN BRAZOS AND GRIMES COUNTIES, TEXAS; WHEREIN THE SAID TEXAS MUNICIPAL POWER AGENCY CONVEYING SAID PROPERTIES TO THE BENEFICIAL OWNERS THEREOF, BEING ITS FOUR MEMBER CITIES BY THE CONVEYANCES DESCRIBED HEREINABOVE; FURTHER, AN ORDINANCE IN TURN AUTHORIZING THE FOUR CONVEYANCES OF ELECRIC TRANSMISSION OFF-SYSTEM FACILITIES FROM THE CITY OF DENTON, TEXAS (AS WELL AS THE OTHER THREE TEXAS MUNICIPAL POWER AGENCY MEMBER CITIES SEPARATELY) BEING: (A) A BILL OF SALE AND ASSIGNMENT OF EASEMENTS AND QUITCLAIM TO THE BRAZOS ELECTRIC POWER COOPERATIVE, INC. REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN MONTAGUE COUNTY, TEXAS; (B) A BILL OF SALE, ASSIGNMENT OF EASEMENTS AND DEED WITHOUT WARRANTIES TO THE BRAZOS ELECTRIC POWER COOPERATIVE, INC. REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN WISE COUNTY, TEXAS; AND (C) BILLS OF SALE AND ASSIGNMENT OF EASEMENTS TO THE CITY OF BRYAN, TEXAS REGARDING CERTAIN INTERESTS IN REAL PROPERTY SITUATED IN GRIMES AND BRAZOS COUNTIES, TEXAS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Texas Municipal Power Agency ("TMPA"), a duly-organized Joint Powers Agency, heretofore previously constructed electric transmission lines for its operations by pursuing contracts reached with its four Member Cities (Bryan, Denton, Garland and Greenville, Texas); following a study by TMPA it was determined that certain electric transmission lines and facilities were "off-system" facilities (hereafter the "Facilities"); that those Facilities have been in use for many years and have been fully-depreciated by TMPA; and that through TMPA, the four Member Cities received the financial benefit of the TMPA Transmission Cost-of-Service filings with the Public Utilities Commission of Texas; and TMPA has held the said facilities and interests in real property, in trust, for the benefit of its four Member Cities; and WHEREAS, it has been determined that neither TMPA nor its four Member Cities desire to operate and maintain said transmission facilities because of the regulatory burden and other factors; and TMPA has recently found purchasers for several of the transmission lines affected, namely the three transmission lines that are set forth herein; and I I WHEREAS, TMPA is hereby conveying all of its interest of record in said transmission lines and the real property related thereto, to each of its four Member Cities, in the same proportional interests that each Member City participated in the contracts upon which the electric transmission lines were initially constructed by TMPA; and WHEREAS, in turn, each of the four TMPA Member Cities desires to convey all of their respective interests in and to said Facilities described herein, to Brazos Electric Power Cooperative, Inc. and to the City of Bryan, Texas (the "Purchasers"); it being the intention of the four Member Cities to divest themselves of any ownership in and to the off-system electric transmission facilities designated, and to provide said Facilities to electric transmission providers who are fully equipped and willing to handle said electric transmission lines; and I WHEREAS, in light of the foregoing, the City of Denton, Texas hereby receives the said off-system electric transmission lines and real property interests; and in turn, desires to convey the same off-system electric transmission lines and real property interests to the Purchasers, simultaneously with the other three TMPA Member Cities; the City Council finds that this action is in the best interests of its citizens and its ratepayers; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations and statements that are contained in the preamble hereto are true and correct, and are expressly incorporated herewith into the body of this Ordinance for all purposes. SECTION 2. The City Council of the City of Denton, Texas hereby accepts, for all purposes, the conveyance of the off-system electric transmission facilities from Texas Municipal Power Agency, a Joint Powers Agency of which the City is a Member City, in the form of the following conveyances, in substantially the form as attached hereto, and incorporated herewith by reference, as follows: Exhibit A. Bill of Sale, Assignment of Easements and Quitclaim - Montague County, Texas transmission facilities as more fully described therein; Exhibit B. Bill of Sale, Assignment of Easements and General Warranty Deed - Wise County, Texas transmission facilities as more fully described therein; Exhibit C. Bill of Sale and Assignment of Easements - Grimes County, Texas transmission facilities as more fully described therein; and Exhibit D. Bill of Sale and Assignment of Easements - Brazos County, Texas transmission facilities as more fully described therein. SECTION 3. The City Council hereby authorizes the Mayor, or the Mayor Pro-Tem, or the City Manager or his designee, to execute and deliver the following conveyances of off- system electric transmission facilities, in substantially the form attached hereto, which is incorporated herewith by reference, to Brazos Electric Power Cooperative, Inc., as follows: Exhibit E. Bill of Sale, Assignment of Easements and Quitclaim - Montague County, Texas transmission facilities as more fully described therein. Page 2 Exhibit F. Bill of Sale, Assignment of Easements and General Warranty Deed - Wise County, Texas transmission facilities as more fully described therein. ~I SECTION 4. The City Council hereby authorizes the Mayor, or the Mayor Pro-Tern, or the City Manager, or his designee, to execute and deliver the following conveyances of off- system electric transmission facilities, in substantially the form attached hereto, which is incorporated by reference herewith, to the City of Bryan, Texas, a Texas Municipal Corporation, as follows: Exhibit G. Bill of Sale and Assignment of Easements - Grimes County, Texas transmission facilities as more fully described therein. Exhibit H. Bill, of Sale and Assignment of Easements - Brazos County, Texas transmission facilities as more fully described therein. I SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ~D/'/ C , 2013. ~ I b MARK - B OU , MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: l APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: Page 3