19-365AN ORDINANCE OF THE CITY OFDENTON AUTHORIZING THE CITY MANAGER, OR
DESIGNEE, TO EXECUTE A PHYSICAL GAS TRANSACTION CONFIRMATION FOR THE
PURCHASE OF NATURAL GAS UNDER THE TERMS AND CONDITIONS OF BASE
CONTRACT FOR THE PURCHASE AND SALE OF NATURAL GAS WITH ENTERPRISE
PRODUCTS OPERATING, LLC; PROVIDING FOR THE EXPENDITURE OF FUNDS; AND,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City, owns an electric generation plant (the Denton Energy Center or
"DEC") 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, on January 16, 2018, the City Council passed Ordinance No. 2018-1537
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 Contract");
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 Information contained in the documents in the preceding paragraph sealed, as it is
competitive electric and financial information; and
WHEREAS, the City Council finds it is in the public interest to purchase natural gas from
Enterprise for the operation 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 of the both the Base Contract 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 from Enterprise authorized under this ordinance.
SECTION 3. Immediately following the execution and delivery of the Physical Gas
Transaction Confirmation, 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 "Public Power Exception") unless
otherwise lawfully ordered to disclose said documents.
SECTION 4. 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 produced for public inspection or
reproduction, but shall be sealed, as provided for in Section 3 above.
SECTION 5. The expenditure of fiends as provided for in this Ordinance is authorized.
SECTION 6. This Ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made b Y and
Y I,! ----- ..0 . _ P
pp Y..+
seconded bµ the ordinance was assedaxid approved by
the following vote
Aye Nay
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 APPROVED this the ."d day 0111 , 2019.
.w
CHRIS WA 1 i S, MAYOR
r,.
ATTEST:
ROSA RIOS, CITY SECRETARY
,
APPROVED AS TO LEGAL FORM:
AARON 1,FAL, CIT ATTORNEY
TRANSACTION CONFIRMATION
FOR IMMEDIATE DELIVERY
Date: March , 2019
Deal Maker
Deal ID #:
This Transaction Confirmation is subject to the Base Contract between Seller and Buyer dated September 1, 2017. The terms
of this Transaction Confirmation are binding unless disputed in writing within 2 Business Days of receipt unless otherwise
specified in the Base Contract.
SELLER: BUYER:
�+9tI1Q.11 City of Denton M _.. ww, .........
JPhone:
,. ....... _ ..... Attn:?hili D p 1q.pM@ ITWrrr
Phone: -
w....
�.._._._Fax:
. w Email: Philio dioastenacfdmeoower corn
Base Contract No.
TERM:
CONTRACT QUANTITY:
CONTRACT PRICING:
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CopyrlgM ®22 NortliAmarican Energy Standards Boerd..ww_w.....
Inc.
All Rights Reserved Page 1 of 1 April 19, 2002
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Seller: ENTERPRISE PRODUCTS OPERATING LLC
By: Enterprise Products OLPGP, Inc., its sole manager
Buyer: CITY OF DENTON, TEXAS, A MUNICIPAL
CORPORATION WHICH OWNS AND OPERATES A
MUNICIPAL ELECTRIC UTILITY KNOWN AS "DENTON
MUNICIPAL ELECTRIC'
By ........... .� By:
Name: _ Name:
Title: Title:
Date: ,., Date:
THIS AGREEMENT HAS BEEN
BOTH REVIEWED AND APPROVED
as to ijandal and operational
okrti ,tl`ons and business terms.
Signature
Title
Department
Date Signed: �,......_.„,
Copyright® 2002 North American Energy St111-11 andards Board,JInc. ����� � - - NAESB Standard 6.3.1
All Rights Reserved Page 2 of 1 April 19, 2002