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18-1537ORI7INANCE NU. 18-1537 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAG�R, OR T�ESIGNEE, TO EXECUTE A PHYSICAL GAS TRANSACTION CONFIRMATION FOR THE PURCHASE OF NATURAL GAS UNDER THE T�RMS AND CONDITIONS OF BASE CONTRACT FOR THE PURCHASE ANI7 SALE OF NATURAL GAS WI'TH ENTERPRISE PRODUCTS OPER,ATING, LLC; PROVIDING FOR THE EXPENI7ITURE OF FUNI7S; AND, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City, awns an electric generation station (the Denton Energy Center or "DEC99) fueled by natural gas to produce electric power; WHEREAS, the City must from time to time purchase the necessary quantities of fuel (45,000 MMBtu daily max.) for the DEC to produce electric power; WHEREAS, an January 16, 2018, the City Council passed Ordinance No. 2018-017 approving a Base Contract for the Purchase and Sale of Natural Gas with Enterprise Products Operating, LLC ("Enterprise") which established the terms and conditions for the City to purchase natural gas from Enterprise ("Enterprise Base Contract99); WHEREAS, the City now needs to purchase natural gas under the Enterprise Base Contract for the operation of the DEC; WHEREAS, the City Council further finds that specific information required to purchase natural gas under the Enterprise Base Contract through the execution of a Physical Gas Transaction Confirmation should be excepted from public disclosure, as permitted by the provisions of §552.133 of the Texas Government Code, as information that is reasonably related to a competitive electric matter ("Competitive Information"), the disclosure of which would provide an advantage to the competitors or prospective competitors of the City's electric utility; 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 the Competitive Infarmation contained in the documents in the preceding paragraph sealed, as it is competitive electric and iinancial information; and WHEREAS, the City Council finds it is in the public interest to purchase natural gas from Enterprise for the aperation of the DEC and for the City Manager, or his designee, to execute a Physical Gas Transaction Confirmation for the purchase of natural gas under the Enterprise Base Contract for the operation of the DEC; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1, The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The City Manager, or his designee, is authorized to (i) expend funds for and purchase natural gas from Enterprise Products Operating, LLC, for the operation of the Denton Energy Center under the terms and conditions af the both the Base Cantract for the Purchase and Sale of Natural Gas between the City and Enterprise and the attached Physical Gas Transaction Confirmation; (ii) execute the attached Physical Gas Transaction Confirmation; and (iii) carry out the rights, duties, obligations and responsibilities of the City in connection with purchase of natural gas fram Enterprise authorized under this ordinance. �"1 ��°a����� �. Immediately following the execution and delivery of the Physical Gas Transaction Confirmatian, the City Secretary, or her designee, is directed to seal and maintain the same in her custody and control, as documents excepted from public disclosure under the provisions of §552.133 of the Texas Government Code (the LcPublic Power Exception") unless otherwise lawfully ordered to disclase said documents. ��I:�°��,;'�"�l�'I�mIT4. This ordinance and a copy of the Transaction Confirmation, as redacted of Competitive Information, shall be open for public inspection and reproduction. The non-redacted Physical Gas Transaction Confirmation shall not be praduced for public inspectian or reproduction, but shall be sealed, as provided for in Section 3 above. SECTION 5. The expenditure of funds as provided for in this Ordinance is autharized. SECTwION 6. This Ordinance sh�ll become effective in�mediately upon its p�ssage and approval. The motion to apprave this ordinance was made by �', y�� �� �� ry�`,� ��� n�' and � �___� seconded bY .�`���.��d',�°d��� �� �� � ���°� �:. , the ordinance was passed and approved by � ......���....�....������......� ...................e�...�..��..�...... the following vote [ 5 - �]: Chris Watts, Mayor: Gerard Hudspeth, District 1: Keely G. Briggs, District 2: Don Duff, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5: Paul Meltzer, At Large Place 6: Abstain Absent PASSED AND AFPROVrD this il�e .... ..... ��� ����ee,, �. ., .day o:f `,������ m�r, � �:' �' "� `��:�` ..., 2018. � �� o ��t�F�w� � � , �� � w�.......... .... ....... ...�".���� �... ..�.. � CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY ��� �� B� � : �� �:�:; nnn, ;�,�f�:�� � .��� � � �."..�_. ���, y APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY � ��,,,,,,,,,,ro,��a,�a,��,._...... �' � An� By' �,° �„,� . �' � _ �.,,�...... . ....... � . ..... �" „ � � ,1 �I i � J ,; � ,� r �, ��l�i��l� i .� � , � � * � . . � �. � � ! *�� �� � " .� � � . � , , r� � , � � � � Tllis transaction confirmation is subject to the NAFSB agreement betwceil Seller and Buyci° dated Septembei- 21, 2017 and appraved by Cauncil January l6, 2018. The terms of this Transacti�n Confirmation ace binding unlcss disputed within 2 Business Days af ecceipt, unlcss otherwisc specified in the Agrecment. SFI_,L.FIi: �,�lt�r ris� i°vducts (?perati,l� LLC; ("EPC)") Pl� �ox 4234 I9austar�, X 77210�4324 LJnrted �tai�� C NTACT: Contract Administration Email: P one: Fax: elivery Start: elivery Encl. Pipeline: ��„°;����,�•��r��d�� �"l.ex�s PL � s '� � �3U1'FT�: I)es7ton 1Viunicrp�l El�ciriu (" E„) I G59 �p�n��i• It�ad �nto�l, TX 762Q5 [Jr�►t�cl �tates I Philip UiPastena Email: �'��il�'�i����t�t��t��Fr���o���������:�u�:�� ���z7�, Yhane: (940) 349 7517 F'ax: (940) 349 7334 �- � Index Price: C�i���;��%:� �"�°a:�t�t / �N�i�c�; I � • • IR i � � ��� � ��II�W�II�1�1��1��I����1 Date: � : � 1 � �. � ; � � � t, � , � 1 • �, � , : ; , „i , " � , ,, , . 1 L�11�7:�.'YD�."'�C��. ► 1 : : ► . = ► . � � ' 1' , _ • � ' - � r' , ���. - � . � ��� * # ' ���� - - F��� F'IJ�LI� ��EL�A s� Addendum � li �� , � "'�, � � � „� .��h� o :i .��., „/rrrJ,,,,i ,., , o, � �l �� y,, ; ,�r�il;:'�kriiy%,/,tl�r��//�/, "!1.�, %ai,1� Nrf���/%i �i%/r/��11 ;��i ,l �r/,'�i ,11/ i, l,� , ' �r I r, o ' � � s ' , '�' „ :rV1J J r:rr..,,,,,; � ,--;�; ,�; ��:>; - J�%o i;� ..;...ii�i.. .. �.,� y/li�,- ... fi �r�'�,i �� . .7 �, ... ,�..; i � G' ' !� �" '� �;' !" 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