18-506ORDINANCE NO. 18-506
AN ORDINANCE APPROVING THE EXTENSION OF THE TEXAS MUNICIPAL POWER
AGENCY'S ("TMPA") POWER SALES CONTR.ACT FOR SEASONAL OPERATION
PURSUANT TO SECTION 5.1.3 OF THE TMPA JO1NT OPER.ATING AGREEMENT; AND
PROVIDING AN EFFECTIVE DATE.
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, section 5.1.3 of the Joint Operating Agreement, as amended, provides that
TMPA members participating in the generation station's output may extend their participation under
the Power Sales Contract beyond September 1, 2018;
WHEREAS, TMPA member City of Greenville has elected not to extend its participation
in the Power Sales Contract beyond September 1, 2018;
WHEREAS, staff for the three TMPA members participating in the Power Sales Contract
(Denton, Garland and Bryan), have expressed their interest in extending the contract through
September 30, 2018 (the current planned seasonal shutdown date for the Gibbons Creek plant), and
during such extension Greenville's share will be allocated among the three remaining cities thereby
increasing Denton's share from 21.3% (100 MW) to 23.7% (�111 MW);
WHEREAS, execution of the Extension Notice does not obligate any TMPA member to
participate in the output from the Gibbons Creek plant beyond September 30, 2018; 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 Notice of Extension and exercise its
extension to participate through September 30, 2018 pursuant to Section 5.1.3 of the TMPA Joint
Operating Agreement. NOW, THEREFORE;
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
� I;�'"l�'i� ��i �.. The recitals and findings contained in the preamble of this ordinance are
incorporated into the body of this ordinance.
�;I�:��"i"���T�`W _�W The City Council iinds that the extension to participate in operations
provided in section 5.1.3 of the Joint Operating Agreement serves a valid municipal and public
purpose and is in the public interest.
����.�"'I"I��1`� :� . 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 _mm__�-�� �m�� day of March, 2018.
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�����'1�:"�4�'"� � l."�'� MAYOR �
ATTEST:
JEI�IFER WALTERS, CITY SECRETARY
BY: �. "��.�� � � � ��,� ���„,� �.
�1�1''�� ' VED � . TO LEGAL FORM:
� � l� �P LEAL, CITY A °���:�RNEY
BY: ���"' ,���
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March 7, 2018
Mr. Bob Kahn
General Manager
Texas Municipal Power Agency
12824 FM 244
Anderson, Texas 77830
Re: Notice of Extension of Power Sales Contract for Seasonal Operation pursuant to Joint
Operating Agreement, effective September 1, 2016, as amended by Second Amendment to Joint
Operating Agreement, effective September 22, 2017 (the "Joint Operating Agreement").
Dear Mr. Kahn:
Pursuant to Section 5.1.3 of the Joint Operating Agreement, the cities of Bryan, Denton, and
Garland (the "Cities") hereby notify you that the Cities intend to purchase one hundred percent
(100%) of the output of the Gibbons Creek Steam Electric Station to complete the seasonal
operation of the plant for 2018, thereby extending the Power Sales Contracts as to the Cities from
September 1, 2018, to September 30, 2018.
Power, energy, and generation costs should be allocated as follows:
Bryan 24.1 %
Denton 23.7%
Garland 52.2%
Thank you for your attention to this matter.
Sincerely,
'� � �����.
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Gary D. Miller
General Manager, Bryan Texas Utilities
Za5 E, 2�3TM STREET � P.Q. BQX i QO(7 ��f�Y/�N, TX 77$C�S � PhIC1hIE: 979.$21.5715 � FA,X: 979.II21.5i95 � WWUV.P,TUTILITIES,CI�M
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Jef� , e
General Manager, Garland Power & Ligltt
Re: Notice of Extension of Power Sales Contract for Seasonal Operation pursuant to Joint
Operating � �;�rc����r�i� effective September 1, 2016, as amended by Second .Amendment to Joint
��y����t��. �� '�•+������a�i.� effective September 22, 2017 (the "Joint Operating Agreement").
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George Morrow
General Manager, Denton Municipal Electric