2018-017•� � � • 1 : 1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, A TEXAS HOME-
RULE MUNICIPAL CORPORATION, PROVIDING FOR, AUTHORIZING, AND
APPROVING THE EXECUTION BY THE CITY MANAGER, OR HIS DESIGNEE, OF A
BASE CONTRACT FOR SALE AND PURCHASE OF NATURAL GAS BETWEEN THE CITY
OF DENTON AND ENTERPRISE PRODUCTS OPERATING, LLC, A TEXAS LIMITED
LTABILTY COMPANY; APPROVING THE EXECUTION OF SUCH OTHER AND FURTHER
RELATED DOCUMENTS DEEMED NECESSARY TO EFFECTUATE THE
TR.ANSACTIONS ALLOWED UNDER THIS AGREEMENT BY THE CITY MANAGER OR
HIS DESIGNEE; CONFIRMING THE CITY IS AUTHORIZED TO PURCHASE NATURAL
GAS FOR THE DENTON ENERGY CENTER UNDER ORDINANCE NO. 2014-060;
DETERMINING THAT SPECIFIC INFORMATION CONTAINED IN SAID DOCUMENTS
INVOLVED IN THIS TRANSACTION PERTAIN TO A"COMPETITIVE ELECTRIC
MATTER" AS SET FORTH UNDER THE PROVISIONS OF §§551.086 AND 552.133 OF THE
TEXAS GOVERNMENT CODE, AS AMENDED; ALLOWING THE PUBLIC TO INSPECT,
BUT NOT REPRODUCE, THE CONTRACT AS REDACTED; PROVIDING AN EFFECTTVE
DATE.
WHEREAS, the City of Denton, Texas (66Denton") is a Texas home-rule City governed by
the constitution and laws of the State of Texas; and
WHEREAS, the Base Contract for Sale and Purchase of Natural Gas ("Contract") will
provide terms and conditions by which Denton can purchase natural gas from Enterprise Products
Operating, LLC, a Texas limited liability company (66Enterprise"); and
WHEREAS, Denton's purchase of natural gas from Enterprise will be for use in the testing
and operation of the Denton Energy Center and will be purchased by Denton under authority
previously provided in Ordinance No. 2014-060 passed by the City Council on March 4, 2014;
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 Contract between
Denton and Enterprise was submitted for final consideration to the Denton Public Utilities Board
on January 8, 2018; a majority of the Public Utilities Board ("PUB99), a"Public Power Governing
Body99 as defined by State law, convened a Closed Meeting as permitted by law, and discussed,
considered, and deliberated the Contract; and thereafter in its Closed Meeting proceeded to take
final action and recommend to the City Council that the Contract be recommended for approval
by the City Council by a vote of seven (7) in favor to none (0) opposed; 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
Body99 under state law, the Council has discussed, deliberated, and considered the Contract in a
Closed Meeting of the City Council on January 9, 2018, after receiving a legal opinion of counsel
that the Contract is a proper item for consideration in its Closed Meeting, which item involves
competitive electric matters, including business and commercial information, which if disclosed,
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SECTTON 7. This ordinance and a copy of Cantract, as redacted of Competitive
Information shall be open for public inspection only; due to copyright restrictions it will not made
available for reproduction. The non-redacted Cantract shall not be produced for public inspection,
but shall be sealed, as provided for in Section 6 above.
SECTION 8. This ordinance shall become effective immediately upon its passage and
appraval.
PASSED AND APPROVED this the 16�" day of January, 2018.
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Base Contract for Sale and Purchase of Natural Gas
The Base Cantract for Sale and Purchase of Natural Gas between Denton and Enterprise
("Contract99) will nat be attached to this ordinance as part af the agenda backup. The cantract form
was developed, and is owned, by the National American Energy Standards Board (66NAESB99�
NAESB has protected this contract form under federal copyright law. Both the City and Enterprise
have a�ic��.���� to use this cantract 1-��•a�� and may disseminate and reprca��l�c��: it for itat�rt��l and
gavern�t�Y�� ���e anly (it has been p���r�i�led to both the members of the I'�.t��ic Utility I�c���r�l and
City Council}. NAESB does not allow its contract form to be disseminated to, or reproduced by,
the public. The Contract, as redacted, will be made available for public inspection only in the office
af the City Secretary. The redacted Cantract will be available for public inspection as soon as the
agenda which contains this item has been pasted.