2017-135*RDINANCE NO. 2017-130
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WHEREAS, the City of Denton is a member of the Texas Municipal Power Agency
("TMPA");
WHEREAS, the TMPA owns and operates the Gibbons Creek Steam Electric Station
("Gibbons Creek Plant") in Grimes County, Texas;
WHEREAS, under the section 5.3.1 of the Joint Operating Agreement, TMPA was to adopt
a decommissioning plan for the Gibbons Creek Plant no later than September 1, 2017;
WHEREAS, TMPA, in light of the current efforts to sell the Gibbons Creek Plant, is
reluctant to expend funds on the development of the decommissioning plan at this time;
WHEREAS, the TMPA board has requested its member cities to waive the requirements
of section 5.3.1 of the Joint Operating Agreement until the efforts to sell the Gibbons Creek Plant
have ceased;
WHEREAS, the other member cities, the City of Garland, the City of Bryan, and the City
of Greenville, have each agreed to waive the requirements of section 5.3.1 of the Joint Operating
Agreement as requested by TMPA; and
WHEREAS, the City Council of the City of Denton deems it is in the public interest and
serves a municipal and public purpose to authorize the waiver of Section 5.3.1 of the Texas
Municipal Power Agency's Joint Operating Agreement; NOW, THEREFORE;
SECTION 1. The recitals and findings contained in the preamble of this ordinance are
incorporated into the body of this ordinance.
SECTION 2. The City Council finds that the waiver the requirements of section 5.3.1 of
the Joint Operating Agreement serves a valid municipal and public purpose and is in the public
interest.
SECTION 3. The City Manager, or his designee, is authorized to execute the letter attached
......... . ................ -
as Exhibit "A" and deliver the same to the Texas Municipal Power Agency.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval,
PASSED AND APPROVED this the day or _ M�� , 2017.
CHRIS WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, iNTEI I Fry Aj-FORNEY
BY:
EXHIBIT A
TO
ORDINANCE
215 E. McKinney ,Street, Denton, Texas 76201
April 18, 2017
Mr. Bob Kahn
General Manager
Texas Municipal Power Agency
12824 F.M. 244
Anderson, Texas 77830
Re: Joint Operating Agreement ("JOA") Decommissioning Plan
Dear Mr. Kahn,
Section 5.3.1 of the JOA requires that the TMPA Board adopt a decommissioning plan by
September 1, 2017 (the "Decommissioning Plan Deadline"). It is our understanding that, in light
of current efforts to sell the power plant, TMPA is reluctant to expend funds on development of
a decommissioning plan at this time. Consequently, it is possible that the Decommissioning Plan
Deadline will be missed.
The City of Denton is agreeable to waiving and does waive the Decommissioning Plan Deadline
provided that, in the event the effort to sell TMPA's power plant is abandoned, TMPA will,
within a reasonable period of time after such effort is abandoned, cause to be developed a
decommissioning plan and obtain approval of the plan by the TMPA Board as contemplated by
the JOA.
Sincerely,
Mayor Chris Watts