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2013-186o�nvANCE No. 2013-186 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXECUTION BY THE CITY MANAGER OF THE "AMENDMENT TO POWER SALES CONTR.ACT BETWEEN TEXAS MUNICIPAL POWER AGENCY AND THE CITY OF BRYAN, TEXAS, CITY OF DENTON, TEXAS, CITY OF GARLAND, TEXAS, CITY OF GREENVILLE, TEXAS," BE1NG AN AMENDED PURCHASE POWER CONTRACT; AUTHORIZING AND APPROVING THE EXECUTION OF SUCH OTHER ANCILLARY AND RELATED DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CERTIFICATES, ASSIGNMENTS, LICENSES, DIRECTIONS, 1NSTRUMENTS, AND STATEMENTS BY THE CITY MANAGER OR HIS DESIGNEE, WHICH ARE INCIDENT TO OR RELATED THERETO, AND AS SHALL BE REASONABLY DETERMINED BY THE CITY ATTORNEY; CONFIRMING AND RATIFYING THAT THE CITY OF DENTON, TEXAS, ITS MAYOR, ITS CITY COUNCIL MEMBERS, ITS CITY MANAGER, ITS CITY ATTORNEY, AND ITS CITY SECRETARY SHALL BE AUTHORIZED AND EMPOWERED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THIS TRANSACTION; FINDING, RATIFYING AND CONFIRMING THAT ALL PRIOR ACTIONS TAKEN BY THE CITY COUNCIL IN FURTHER.ANCE OF THE FOREGOING TRANSACTIONS; AND DETERMINING THAT SAID "AMENDMENT TO POWER SALES CONTRACT BETWEEN TEXAS Mj.JNICIPAL POWER AGENCY AND THE CITY OF BRYAN, TEXAS, CITY OF DENTON, TEXAS, CITY OF GARLAND, TEXAS, CITY OF GREENVILLE, TEXAS" PERTAINS TO A"COMPETITIVE ELECTRIC MATTER" AS SET FORTH UNDER THE PROVISIONS OF §§551.086 AND 552.133 OF THE TEXAS GOVERNMENT CODE, AS AMENDED; F1NDING AND DETERMINING THAT TEXAS GOVERNMENT CODE §252.022(a)(15) APPLIES; ADOPTING SIGNIFICANT RECITATIONS, FINDINGS AND CONCLUSIONS, AS ARE SET FORTH 1N THE PREAMBLE OF THIS ORDINANCE; THAT THE PURCHASE OF ELECTRIC ENERGY MADE BY THE CITY UNDER THE TERMS OF THIS AMENDED PURCHASE POWER CONTRACT ARE 1N THE PUBLIC WELFARE; AUTHORIZING THE EXPENDITURE OF FiJNDS THEREFOR; PROVIDING AN EFFECTIVE DATE. WIIEREAS, the City of Denton, Texas ("Denton") is a Home-Ru1e City and a Texas municipal corporation governed by the constitution and laws of the State of Texas; and WHEREAS, in accordance with the provisions of §551.086 of the Texas Government Code, after due notice of the public meeting was provided as required by law, the approval of the "Amendment to Power Sales Contract between Texas Municipal Power Agency and City of Bryan, Texas, City of Denton, Texas, City of Garland, Texas, City of Greenville, Texas" transaction (the "Transaction") was submitted for consideration to the Denton Public Utilities Board ("PUB"), an advisory board, on the 8th day of July, 2013; the quorum of the said Public Utilities Board is constituted by four members present; and with s� of its seven members present, the PUB, being a"Public Power Governing Body" as defined by State law, convened a Closed Meeting as permitted by law, and concluded that this Transaction was a Public Power Competitive Matter; and having discussed, deliberated, considered, and it toolc final action on the Transaction; the PUB recommended to the City Council that the Transaction by and between Denton and Texas Municipal Power Agency, a Texas Joint Powers Agency ("TMPA"), established by the Texas legislature in September 1975, be recommended for approval by a vote of six (6) in favor and none opposed; being unanimously approved by a vote of the six PUB members then present; and WHEREAS, in accordance with the provisions of §551.086 of the Texas Government Code, after due public notice being given, the City Council, a"Public Power Utility Governing Body" under Senate Bi117, has discussed, deliberated, considered the Transaction, the subject of this ordinance, in a Closed Meeting of the City Council on the 16th day of July, 2013, with a quorum of the City Council being present at that time, after determining that the consideration of the item which is the subject of this ordinance, is related to competitive electric and financial matters, including business and commercial information, which if disclosed, would give advantage to its competitors or prospective competitors; and having received the legal opinion of its attorney in support thereof; and WHEREAS, thereafter, after due public notice being given, the City Council, proceeded to consider the matter of the Transaction which is the subject of this ordinance, in its Closed Meeting on the 16th day of July, 2013, and the City Council proceeded to take final action, and voted, by a majority of its members present in its Closed Meeting, as permitted by State law; � for and � against, to approve the Transaction; being a majority of its seven (7) members present and voting, in favor of the Transaction described in this ordinance, as set forth below; and WHEREAS, the City Council has further deternuned and finds that should there be other supporting documents to be entered into by and between Denton and TMPA, following the approval of this Amended Purchase Sales Contract, that all other documents which are incident to or related thereto, as from time to ti_me may be executed by the City of Denton, Texas and/or TMPA, in connection therewith; should be excepted from public disclosure, as permitted by the provisions of §552.133 of the Texas Government Code, as documents that are reasonably related to a competitive public power matter, the disclosure of which documents would provide an advantage to the competitors or prospective competitors of Denton Municipal Electric ("DME"); and WHEREAS, the City Council has further determined that it is in the public interest that it should exercise its right under the Texas Government Code to lawfully safeguard and keep certain of these documents sealed, as they are competitive documents which contain competitive electric information; and WHEREAS, the City Council finds that there is no divestiture, sale or other disposition of the property of any utility of the Denton, and therefore, that no public election is required pursuant to the Charter of the City of Denton, Texas ("Charter"); and WHEREAS, the City Council finds that said Transaction involves Denton continuing to purchase from TMPA, a portion of its necessary replacement power and energy requirements, 2 and that such Transaction involves Denton's continued acquisition of reliable, cost-effective power and energy from TMPA; with no detriment to the ratepayers of DME; and WHEREAS, the City Council finds and affirms that the transaction as provided by this ordinance, will not impair the ability of Denton to comply with the provisions of any of its utility revenue bonds, as amended, which are now issued and outstanding; and WHEREAS, the City Council fmds that §252.022(a)(15) of the Texas Government Code is applicable to this Transaction and that competitive bidding law is not applicable to the purchase by the City of electricity; NOW THERFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council, hereby approves and authorizes the City Manager and City Secretary, to execute and attest respectively, the "Amendment to Power Sales Contract between Texas Municipal Power Agency and the City of Bryan, Texas, City of Denton, Texas, City of Garland, Texas, City of Greenville, Texas" (hereafter the "Amendment") under the terms and conditions being contained in substantially the form which is attached hereto as E�iibit "A," and made a part hereof, with such amendments, changes and additions as the City Manager may approve, and the execution and delivery thereof on behalf of the City of Denton by or at the direction of the City Manager shall constitute such approval. SECTION 2. The City Council, hereby approves and authorizes the City Manager and City Secretary to execute and attest respectively, all other documents which are incident and related to the Amendment referenced herein and to take such additional actions as the City Manager shall determine to be necessary and advisable to effectuate the matters set forth above. SECTION 3. The City of Denton, the Mayor, the City Manager, the City Attorney or their designees be, and each of them individually hereby is, authorized and empowered to perform all such acts and obligations as required with respect to the Amendment and the documents described herein. SECTION 4. All prior actions talcen by the Mayor, the City Manager, the City Attorney, the City Secretary or their designees, in furtherance of the foregoing matters be and hereby are ratified, approved, confirmed and authorized in all respects as of the dates and times such actions were talcen. SECTION 5. Immediately following the execution and delivery of the documents described as the "Amendment" hereinabove described, and any and all such other supporting documents which are incident to such "Amendment," as provided for in this ordinance, the City Secretary is hereby directed to seal and maintain said documents in her custody and control, as documents which are excepted from public disclosure under the provisions of §552.133 of the Texas Government Code (the "Public Power Exception"); unless s otherwise lawfully ordered to disclose said documents. The City Secretary, however, shall keep this ordinance (without attachments) as a public record. SECTION 6 The expenditure of funds as provided for in this ordinance is hereby authorized. SECTION 7. This ordinance shall become effective immediately upon its passage and approval; provided however, that it shall not become effective until the date that the last of the four TMPA Member Cities approves this Amendment; and this ordinance shall only become effective once it has been approved by the TMPA Board of Directors, whichever date is later. PASSED AND APPROVED on this the 16th day of July, 2013. ATTEST: JENNIFER WALTERS, CITY SECRETARY By: � 1 ' � , APPROVED AS TO LEGAL FORM: A1vITA BURGESS, CITY ATTORNEY By. ,; �, r��, �a " � t '� i �. � , �..__ . (I� MARK A. YOR