2016-200ORDINANCE N0. �� � �'`���
AN ORDINANCE OF THE CITY OF DENTON APPROVING AN INTERDEPARTMENTAL
TRANSFER OF FUNDS AND USE OF REAL PROPERTY OWNED BY THE CITY WHERE
DENTON MUNICIPAL ELECTRIC IS ACQUIRING THE USE APPROXIMATELY 14.511
ACRES OF LAND FROM THE CITY'S SOLID WASTE DEPARTMENT, BE1NG A TRACT
OF LAND SITUATED WITHIN LOT GR, SOLID WASTE 1 ADDITION, IN THE CITY OF
DENTON, DENTON COUNTY, TEXAS, TO BE UTILIZED FOR THE LOCATION OF THE
MAYHILL ELECTRIC SUBSTATION; SAID INTERDEPARTMENTAL TRANSFER PRICE
BEING 1N THE AMOUNT OF $1,205,455.35 TO BE PAID TO THE CITY OF DENTON SOLID
WASTE DEPARTMENT FROM DENTON MUNICIPAL ELECTRIC; PROVIDING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Denton Municipal Electric Capital Improvement Plan includes a project
to reconstruct its electric transmission system as its current capacity is inadequate for expected
future load. As part of this plan the need for a substation in the vicinity of Mayhill and Spencer
Road has been identified; and
WHEREAS, the City of Denton Solid Waste Department uses approximately 14.511 acres
of real property owned by the City that Denton Municipal Electric would like to use for the location
of the Mayhill Electric Substation. The Solid Waste Department and Denton Municipal Electric
have collaborated and agreed that an interdepartmental transfer of funds and use property of said
approximately 14.511 acre tract to Denton Municipal Electric is in the best interests of both
Departments; and
WHEREAS, the consideration for this transaction is the payment by Denton Municipal
Electric to the Solid Waste Department of an obligation for payment in the amount of
$1,205,455.35, said amount being the present fair market value for said real property; and
WHEREAS, on July 11, 2016, the Public Utilities Board considered the proposed
transaction and recommended approval to the Council by a vote of 4 to 0; and
WHEREAS, after due consideration of the public interest and necessity, and the public use
and benefit to accrue to the City of Denton, Texas; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The Council finds that a public use and necessity exists, and that the public
welfare and convenience require the transfer of funds from Denton Municipal Electric to the City's
Solid Waste Department in the amount of $1,205,455.35 and conveyance of use the said 14.511
acres of real property owned by the City from the City's Solid Waste Department to Denton
Municipal Electric.
SECTION 2; The recitations that are contained in the preamble to this ordinance are true
and correct.
SECTION 3. The Council finds and determines that the interdepartmental transfer of use
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from the City's Solid Waste Department to Denton Municipal Electric of approximately14.511
acres in the Lot GR, Solid Waste 1 Addition, in the City of Denton, Denton County, Texas, owned
by the City is necessary for public use to provide for the expansion of the Denton Municipal
Electric Mayhill Substation to serve the public and the citizens of the City of Denton, Texas and
that Denton Municipal Electric shall transfer the amount of $1,205,455.35 to the City's Solid
Waster Department..
SECTION 4. The City Manager, or his designee, is hereby authorized to execute and to
accept any and all documents necessary for closing the transaction contemplated by this ordinance,
including the authorization to make expenditures in accordance with this ordinance.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
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approval.
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PASSED AND APPROVED this the�� wwww day c
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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ANITA BURGESS, CITY ATTORNEY
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WATTS, MAYOR