20-744ORDINANCE NO.20-744
AN ORDrNANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION, AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO SELECT A
VENDOR TO PROVIDE THE CITY WITH, TO PURCHASE, AND TO EXECUTE AN
AGREEMENT FOR, GENERATION UTILITY PLANT FORCED OUTAGE INSURANCE;
AUTHORIZING THE EXPENDITURE OF FUNDS; AND, PROVIDING AN EFFECTIVE DATE
(RFP NO. 7306 –AWARDED TO SELECTED VENDOR IN A NOT-TO-EXCEED AMOUNT OF
$800,000.00 FOR DEC FORCED OUTAGE INSURANCE).
WHEREAS, on March 17, 2020, the City Council approved the Denton Municipal Electric –
Energy Management Risk Policy (“ERMP”; Ordinance No. 20-420) which establishes how the City
will manage energy commodity risks, including the financial risks associated with the non-
performance of the Denton Energy Center; and
WHEREAS, the City has solicited and received competitive proposals for generation utility
plant forced outage insurance (“DEC Forced Outage Insurance”) for the Denton Energy Center
(“DEC”); and
WHEREAS, after reviewing and evaluating all timely submitted proposals, the City
Manager, or his designee, will (i) select the vendor with the proposal that is most advantageous to
the City, considering the relative importance of price and the other evaluation factors included in the
request for proposals; (ii) purchase DEC Forced Outage Insurance from the same in a not-to-exceed
amount of $800,000.00 in accordance with the proposal; and, (iii) execute any required agreements
for the purchase of the DEC Forced Outage Insurance; and
WHEREAS, the City Council has appropriated funds in its budget to be used for the purchase
of the DEC Forced Outage Insurance approved and accepted herein; and,
WHEREAS, the City Council finds the acquisition of the DEC Forced Outage Insurance is in
adherence with the objectives of the City’s ERMP and is in the best interest of the public; NOW,
THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations and findings in the preamble of this ordinance are incorporated
herein by reference.
SECTION 2. For the City’s Request for Proposal No. 7306 for generation utility plant
forced outage insurance for the Denton Energy Center, the City Manager, or his designee, is
authorized to (i) select the vendor with the proposal that is most advantageous to the City,
considering the relative importance of price and the other evaluation factors included in the request
for proposals; (ii) purchase DEC Forced Outage Insurance from the selected vendor in a not-to-
exceed amount of $800,000.00 in accordance with the pricing, specifications, standards, and
quantities set forth in the request for proposal, proposal, and related documents; (iii) execute any
required agreements, and related documents, with the selected vendor, after the same have been
reviewed and approved by the City Attorney, or his designee; and, (iv) take any additional actions
that may be required or permitted to be performed by the City related to this ordinance and
associated documents.
SECTION 3. By the acceptance and approval of the proposal by the City Manager, or his
designee, as delegated herein, the City Council authorizes the expenditure of not more than
$800,000.00 therefor in accordance with the selected proposal and this ordinance.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
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following vote [ a_ - ]_ ] :
Aye
J
V
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V
V
Nay Abstain Absent
Mayor Chris Watts:
Gerard Hudspeth, District 1 :
Keely G. Briggs, District 2:
Jesse Davis, District 3 :
John Ryan, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
/
ATTEST:
ROSA RIOS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY Hh