19-681DEISM
AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO
EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEXAS
MUNICIPAL POWER AGENCY THAT DEFINES THETERMS FOR REIMBURSEMENT'
FOR SERVICES RENDERED BY THE CITY TO TMPA IN CONJUNCTION WITH
RECONSTRUCTION OF THE ARCO TO COOPER CREEK TRANSMISSIOIN LINE;
AUT14ORIZING THE EXPENDITURE OF FUNDS; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Denton ("City") operates a municipally -owned electric company
and is a founding member of the Texas Municipal Power Agency ("TMPA");
WHEREAS, TMPA owns transmission assets located in Denton that deliver electric power
to the City of Denton;
WHEREAS, on September 1, 2015, City, approved an agreement between it and TMPA
whereby DME would to construct, operate, and maintain TMPA's 138kV transmission assets in
the Denton area (Ordinance 2015-258); and said agreement being extended until September 1,
2020;
WHEREAS, City, has been constructing, operating, and maintaining TMPA's electric
transmission infrastructure in Denton County for several years to the satisfaction of both parties;
WHEREAS, the Transmission Operator Maintenance and Construction Services
Agreement, provides, in Section 3.7, "Billings and reimbursements for capital project expenditures
will be made in accordance with mutually agreed procedures, which may differ from project to
project."
WHEREAS, the purpose of the Reimbursement Agreement (attached as Exhibit "A") is to
provide for such "mutually agreed procedures" as contemplated in the aforementioned Section 3.7
of the Transmission Operator Maintenance and Construction Services Agreement;
WHEREAS, CITY, desires to be reimbursed for services rendered to TMPA in
reconstruction of the Arco to Cooper Creek transmission line-,
WHEREAS, on April 8, 2019, the City's Public Utilities Board, in open session,
recommended to the Council, by a vote of Lve Je� _�L ) in favor and Z_,ero
opposed, that
the Reimbursement Agreement, through ordinance, be approved;
WHEREAS, the City Council finds that this ordinance is in the best interest of both the
citizens and ratepayers-, NOWTHEREFORE;
THE COUNCIL OFTHE CITY OF DENTON ORDAINS:
SECTION 1. The recitations contained in the Preamble to this ordinance are incorporated
by reference into this Ordinance.
SECTION 2. The City Manager, or his designee, is authorized to (a) execute the
Reimbursement Agreement, attached as Exhibit "A" and incorporated herein, and any other
documents necessary for fulfilling the terms and conditions of the agreement; and (b) to make
expenditures in accordance with the terms of the agreement.
SECTION 3. If any section, article, paragraph, sentence, phrase, clause or word in this
ordinance, or application thereof to any persons or circumstances, is held invalid or
unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of
the remaining portions of this ordinance; the City Council declares that it would have ordained
such remaining portion despite such invalidity, and such remaining portion shall remain in full
force and effect.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by and
seconded by �"�
the Ordinance rv�i passed and approved
by the following vote [ ....
Aye Nay Abstain Absent
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: .°°
PASSED AND . ' �s the day of '..... .........
CHRIS W p
i
A 1 � , MAYOR
ATTEST: wm
w
ROSA RIOS, CITY SNC
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
ov V
T11A,1NSMJSSMN
This Transmission Project AlYreenieyit ("RL-i M bUrSCIIIeilt Agreen-=t") is
D
made between tire Texas Municipal Power Agency ("'FNIPA.") and the C&v of'Denton, Texas
("Denton") on this 25th day of February, 20M
RECITALS
TMPA and Denton are parties to the Transmission Operator, Maintenance, and
Construction Services Agreement, dated April 1, 2016 (the "Transmission Operator Agreement"),
The Transmission Operator Agreement, provides, in Section 3.7, "Billings and reimbursements
for capital project expenditures will be made in accordance with mutually agreed procedures,
which may differ from project to pr(Ject," The purpose of` this Reimbursement Agreement is to
provide for such "Mutually agreed procedures" applicable to the trans.mission project more fully
described in ExIii bit "A" (.hereinafter, the "Transmission Project").
AGREEMEN'r
In consideration of the mutual benefits and obligations of' the parties, TMPA and Denton
agree as follows:
1. Reirnbursable Costs under this Reimbursement Agreement shall be costs incurred by
Denton to construct the Transmission 11roJect and allowed under The Transmission Operator
Agreement,
Reimbursable Costs that Denton has incurred for the Transmission Project prior to the date
of this Reimbursement Agreement are set forth in Exhibit "B". T.N4PA shall reimburse to
Denton such costs within 20 days following the date of this Reirnbursement Agreement or
date of invoicing, whichever is later. For work performed and Reimbursable Costs incurred
.for the Transmission Project following the date of this Reimbursement Agreement, Denton
shall invoice TMPA on a monthly basis. All invoices shall he paid by TMPA in
accordance with Section 3.8 of the Transmission Operator Agreement, Reimbursable
Costs shall not include costs associated with designing and constructing the Transmission
Project to accommodate future electric distribution facilities, Reimbursable Costs are
estimated and anticipated to be approximately $3,4 irrillion,
At the option of'Denton, Dentonmaysubmit directly to TMPA invoices from suppliers,
contractors, engineers, and others working on the Transmission Project or directTMIJA to
contract directly with suppliers, contractors, engineers, and others working on the
Transmission Project, Such direct payments byTM.111A will be included in the overall cost
of the `I Project, although not reimbursed through Denton,
3. In accordance with, Section 3.9 ofthe Transrnissiori Operator Agreement, Denton, solely
at its own option, may cease activifles on th.eTransmission project until adequate funds for
the `(Transmission. Project have been approved byTNTPA.
4. Provisions relating to the giving of notice, governing law, assign.rnent, and other matters
relating to the Transrnission Project and this Reimbursement Agreement shall be as set
forth in the Transmission Operator Agreement,
No party shafl assign this Reimbursement Agreement without the writlen consent of the
other.,
6o hi the event a provision of this Reim burseinent Agreement is determined by a COUrt by
linal.judgmenr to be invalid or iflegat, such invalidity or illegality shall not affect, the other
provisions of this Reinibursement Agreement, which shall remain in full. force and effect,
T This ReirnbUrsenient Agreement shall be governed. by the laws of the State of Texas.
8� This R.6nikii.rsement Agreement may, be signed 41 counterparts and delivered by enrail or
by facsimile. Electrori.ic copies of the fully signed Reirnbursement Agreement or signed
counterparts shall have the sarne force and effect as original signed copies,
This Reirnbursemerit Agreement applies onty to the pro " ject described. in Exhibit "A." and
shaH have no effect on any agreement relating to any other project or projects to be
constrUcted by Denton for 'I'MPA., In the event of any irreconcilable inconsistency between
this Reimbursern.ent Agreement and the Transmission (Verator Agreernent, the
Transm.ission Operator Agreeirnent shall controL
FIxecuted as of the date set forth in the first paragraph hereof.
H."XAS MUNICIPAL POW. F.R AGENCY
Name, Bob Kahn
Title:: General. Manager
CITY 017 DENTON, TEXAS
By::
Name: e,
Title: C"A.'\ r
� H- AAAA,fe
(Denton A, R ("(D -Coopell,
TEXAS MLINICIPAL POWEFt AGENCY
CAPITAL, Al IPDAI E:'
On , eTl , me - Need CapitM Mari Year:�
Cyclical Need 2018
....... . .. ........ ......... .. .. .. . . ........ . ..... j.. .. . . ... ............ .... ... . . . ...... ............... . .......
I COBW �y Approved: . .....
$4,273,500 $ 1,661 220
UPDA'FET.) DESCMFTION 01::� PROJECT;
"rhe origlinap project caRed for hisfaHatlon of fifleffli now G)oWs to rei.:)iece ffpfteern exisding pdles betweeri Denton"s, Arco,
SUbstaUon and Denton's Cooper Creek Substaflorn. With the change fan scqw. to the project, approxknatMy 70% of the
new pipes, , WHI require Ostribuflon under-bOd and those be seciloris MH Ihave shorter spannpng. llft WO r-880 fi°l Nventy
four p0es pant ad of #% origh-jap fifteen, Addh-)g dislrftton underr ufld WO requhre taHer p6es then orlgpnefly assumed,,
The cost for tiVs project does not pncWde inn staflation of distribuflon underbuild,
qMPL.ICAMN QHANGE.S�
1. Change 111.1 nn`.nvfilrolll'nerltal prtlpact? YF' ()
2. Change In Safely, impact? Yes
3. 01-sange hn PurchasIng fiviplicaflons?
If yes to any questforii, review by appropriate depastiient rfaqWred,
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DESCRIPTION OF ("'OS'll "), 11"4C, UP, PRIOR TC) Tl 11 �, DAI'F� OF TJ ACH? F`EJVF'1 11'
$212,469,48