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21-1784ORDINANCE NO. 21-1784 AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME -RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER TO EXECUTE A POWER PURCHASE AGREEMENT BETWEEN THE CITY AND O'REILLY HOTEL PARTNERS — DENTON, LLC., A MISSOURI LIMITED LIABILITY COMPANY; PROVIDING FOR EXPENDITURE OF FUNDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City owns and operates an electric utility which provides electric energy and related services to all customers within Denton Municipal Electric's (DME) Public Utilities Commission of Texas (PUCT) certificated jurisdiction; and WHEREAS, the City of Denton desires to permit electric customers having electric generation facilities located within the City limits of Denton, Texas to offset a part of their electrical requirements by utilization of customer's electric power generation facilities; and WHEREAS, Customer desires to interconnect the electric generating facilities to the City's Electric Utility System; and WHEREAS, Customer has completed and submitted the Application for Interconnection and Parallel Operation of Distributed Generation with the City; and WHEREAS, both the City and Customer have agreed to terms and conditions set forth in a power purchase agreement (PPA) and desire to enter the PPA for the Installation of Distributed Generation; and WHEREAS, the City Council finds that it is in the interest of the public and Customer that a copy of the PPA, redacted of Competitive Information, be made available to the public; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the City Council approves and authorizes the City Manager, or designee, and City Secretary, or designee, to execute, attest and deliver, respectively, the power purchase agreement, attached as Exhibit `A' and any exhibit thereto, with O'Reilly Hotel Partners — Denton, LLC. SECTION 2. The findings in the preamble of this ordnance are incorporated herein by reference. SECTION 3. Immediately following the execution, attestation, and delivery of the PPA and any exhibits thereto, the City Secretary is directed to seal and maintain the PPA in her custody and control, as documents excepted from public disclosure under the previsions of Texas Government Code, Section 552.133 unless otherwise lawfully ordered to disclose said documents. SECTION 4. A copy of the PPA, redacted of Competitive Information, attached as Exhibit `B', shall be available to the public for inspection and copying. Absent lawful order, the original PPA shall not be available for public inspection or copying and will be sealed as provided for in the preceding section. SECTION 5. The expenditure of funds 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 byand _ seconded by " gt l� ,the ordinance was passed and approved by the following vote L71– - Q] : A Nay Gerard Hudspeth, Mayor: —I Vicki Byrd, District 1: Brian Beck, District 2: Jesse Davis, District 3: Alison Maguire, District 4: f Deb Armintor, At Large Place 5: Abstain Absent Paul Meltzer, At Large Place 6: PASSED AND APPROVED this the7 $� day of S¢�e c^�be C' 2021. GERARD RIADSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY F D BY:, APPROVED AS TO LEGAL FORM: '•.. .'CO CATHERINE CLIFTON,CITY ATTORNEY '�o oN:dnm.erd�nrdmtan.aP�ad�a an a=Depadment U— -d tlGrcup; w=GmaraEGar¢mMenl,eu=Legd. �N m�ntherine Offtan, '0 ��1111 i/ d.CathedneAiNon®dtyofdenton.[am BY. �W2U U9331i:1]39 U5W' DocuSign Envelope ID: 2AE7D681-EC5A-4088-BB7B-E6ADDE7E0930 THE STATE OF TEXAS )( COUNTY OF DENTON )( POWER PURCHASE AGREEMENT By and Between The City of Denton, Texas and O'Reilly Hotel Partners — Denton, LLC This Power Purchase Agreement (hereafter this "Agreement") is entered into as of this day of September, 2021, by and between O'REILLY HOTEL PARTNERS — DENTON, LLC, a Missouri limited liability company (hereafter "CUSTOMER"); and the CITY OF DENTON, a Texas Municipal Corporation and a Home -Rule City (hereafter "CITY") through its electric utility referred to as Denton Municipal Electric ("DME"). CUSTOMER and the CITY may also be referred to individually as a "Party," or collectively as the "Parties." Unless otherwise defined in this Agreement, capitalized or italicized terms shall have the meanings set forth in "Exhibit 1" attached hereto or set forth herein. SECTION 1 TERM OF AGREEMENT 1.1 Purchase of Power. The CITY shall, for the term of this Agreement, purchase all Net Generation delivered by CUSTOMER and produced by the photovoltaic generating facilities owned by CUSTOMER through PPFID112 and PPFIDI12-B to the DME system through the CUSTOMER'S point of interconnection. "Net Generation" is the amount of gross generation less the electrical energy consumed through the same meter. 1.2 Term of Agreement. Subject to the conditions set forth herein, the Parties' obligations under this Agreement shall be effective October 1, 2021 (the "Effective Date"). Unless otherwise suspended in accordance with the terms of this Agreement, this Agreement shall remain in full force and effect until September 30, 2026 (the "Initial Term"). 1.3 Renewal. Six months prior to the end of the Initial Term and to the end of any term extensions, CITY shall give notice to CUSTOMER of any change to the rate for the additional term pursuant to Section 3. Unless a rate change is negotiated or this Agreement is non -renewed, this Agreement shall automatically renew at the end of each term for an additional five year term. SECTION 2 CONDITIONS PRECEDENT 2.1 Conditions Precedent. The performance of this Agreement by either Party shall be subject to the occurrence of all of the following events or conditions: POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with the provisions of Texas Government Code, Section 552.101, 552.104, 552.110 and/or 552.133, and may be protected from required public disclosure. DocuSign Envelope ID: 2AE7D681-EC5A-4C88-BB7B-E6ADDE7Ep930 (a) Approval of the related Agreement for Interconnection and Parallel Operation of Distributed Generation for PPFIDO112 and PPFID0112-B by the CITY and CUSTOMER. (b) Approval of this Agreement by CUSTOMER; and (c) Approval of this Agreement by City Council of CITY. SECTION 3 RATE 3.1 Generation Rate. Notwithstanding a Change in Law pursuant to Section 5 of this Agreement, SECTION 4 NON -RENEWAL OF AGREEMENT 4.1 If at the conclusion of any term, either Party does not wish to renew this Agreement, then on the day following the expiration of the term, and for every year thereafter, CITY will not be obligated to purchase any generation transferred to the DME grid from PPFID0112 or PPFIDO112- B. SECTION 5 CHANGE IN LAW 5.1 If, during the Term of this Agreement, there occurs any material change (including the promulgation, enactment, repeal or amendment of any law or in the application of law) that in any manner affects the generation credit being offered to CUSTOMER, or requires the CITY to opt - into the deregulated ERCOT electric market, or if the CITY elects to opt -into retail competition then, to the extent allowed and not otherwise prohibited by such change in law, the provisions and terms of this Agreement shall control and such change in law shall not in any way affect or change the terms of this Agreement regarding the Credit to CUSTOMER for generation to CITY, or the means by which electricity Power is transmitted, distributed or conveyed through or by CITY to CUSTOMER as provided by this Agreement. Additionally, should there be any implementation of a federal or a state law, or should there be any material change in law or action by any state or federal governmental agency that either: (a) renders this Agreement illegal or unenforceable; or (b) would reader performance by either Party hereto as illegal or unenforceable; or then promptly after any such material change in law or governmental action, and by written notice delivered to POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with the provisions of Texas Government Code, Section 552.101, 552.104, 552.110 and/or 552.133, and may be protected from required public disclosure, SPR 17567147.2 DocuSign Envelope ID: 2AE7D681-EC5A-4C88-BB7B-E6ADDE7Eo930 the affected Party by the other Party, the Parties shall enter into good -faith negotiations to make the minimum changes to this Agreement which will be necessary to render this Agreement in compliance with any such material change in law or governmental action while preserving, to the maximum extent possible, the benefits, burdens, and obligations of each Party under this Agreement. SECTION b METERING 6.1 Measurement. Charges for electric Power and Generation Credits are calculated using measurements from metering equipment owned, installed and read by CITY. Electric meter services will be performed by CITY, at its sole expense, in accordance with the applicable electric rate tariff and Good Utility Practices. 6.2 Meter Testing. CITY will test its meters in accordance with the schedule and standards of the American National Standards Institute, Inc. ("ANSI"). Upon notice from CUSTOMER, CITY will, at CUSTOMER's sole expense, perform additional tests of the accuracy of its meters within a reasonable time after notice is received. Following the completion of any test, CITY will promptly advise CUSTOMER of the date of the test, test results, who performed the test, and the date of the removal of any meter(s). 6.3 Invoice Adjustment Due to Meter Inaccurac . If any meter is determined to be outside the accuracy standards established by ANSI, proper correction will be made of the measurement data, and CUSTOMER or CITY may adjust their respective charges based on the corrected meter data. 7.1 Billing and Pa ment. from date of invoice issuance. SECTION 7 BILLING AND PRICE Payment shall become past due if not paid within 15 calendar SECTION 8 AUDIT 8.1 Each Party (and its representatives) has the right, at its sole expense and during normal working hours, to examine the records of the other Party to the extent necessary to verify the accuracy of any statement, charge, or computation made pursuant to this Agreement. If requested, a Party shall provide to the other Party statements evidencing the quantities of Power delivered at the Delivery Point(s). If any such examination reveals any inaccuracy in any statement, either on the part of the CITY or CUSTOMER, then the necessary adjustments with such statement and the payments thereof will be promptly made and shall bear interest calculated in accordance with POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with the provisions of Texas Government Code, Section 552101, 552.104, 552.110 and/or 552.133, and may be protected from requiredpublic disclosure, SPR 17567147.2 DocuSign Envelope ED: 2AE7D681-EC5A-4C88-BB7B-E6ADDE7E0930 Texas Government Code, Chapter 2251, from the date the overpayment or underpayment was made until the amount is fully paid; provided, however, that no adjustment for any statement or payment will be made unless an objection to the accuracy thereof was made prior to the lapse of two (2) years from the date of issuance of the statement audited. SECTION 9 MISCELLANEOUS 9.1 Assigpment. This Agreement may not be assigned by either Party without the prior written consent of the non -assigning Party. 9.2 No Joint Venture or Lending of Credit Intended. Nothing in this Agreement shall be construed to create a partnership, joint venture, or other legal entity between the Parties. The rights and obligations of the Parties are to be governed strictly by this Agreement, and it is not intended that there shall be any lending of credit by one Party to the other or that either Party shall be entitled to create any obligation binding on the other Party that is not specifically provided for herein. Nothing herein shall be construed as a loan or pledge of credit or assets by the State of Texas or CUSTOMER as prohibited by Article 3, Section 50 of the Texas Constitution, or otherwise. Nothing herein shall be construed as a loan or pledge of credit or assets by the State of Texas or CITY as prohibited by Article 3, Section 52 of the Texas Constitution, or otherwise. 9.3 Notices. All notices, requests, statements, or payments shall be made in writing as specified below. Notices required to be in writing shall be delivered by letter, electronic media, facsimile, or other documentary form. Notice shall be deemed to have been received by the close of the day on which it was transmitted or hand delivered (unless transmitted or hand delivered after the close of recipient's business or on a day on which recipient is not open for business, in which case it shall be deemed received at the close of the next day on which recipient is open for business). Notice by overnight mail or overnight courier shall be deemed to have been received one (1) day after it was sent (unless delivered after the close of recipient's business or on a day on which recipient is not open for business, in which case it shall be deemed received on the next day on which recipient is open for business). A Party may change its addresses by providing notice of same in accordance herewith. To CITY: Denton Municipal Electric 1659 Spencer Rd Denton, TX 76205 Fax No.: (940) 349-7334 Phone No.: (940) 349-8487 Attn: General Manager and and City of Denton, Texas 215 East McKinney Street Denton, TX 76201 Fax No.: (940) 349-8596 Phone No.: (940) 349-8560 Attn: City Manager POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with the provisions of Texas Government Code, Section 552.101, 5S2.104, SS2.110 and/or SS2.133, and may be protected from required public disclosure SPR 17567147.2 DocuSign Envelope 1D: 2AE71D681-EC5A-4C88-BB7B-E6ADDE7E0930 City of Denton City Attorney 215 E. McKinney Denton, TX 76201 Fax No.: (940) 382-7923 Phone No.: (940) 349-8333 To CUSTOMER: O'Reilly Hotel Partners — Denton, LLC Attn: Timothy B. O'Reilly 4045 E. Sunshine, Suite 210 Springfield, MO 65809 Phone No.: (417) 851-8700 Fax No.: ( ) NOTE: All Invoices to CUSTOMER will be handled in accordance with normal billing practices. 9.4 Governing Law. THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, ENFORCED, AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OR CHOICE OF LAWS. THE EXCLUSIVE VENUE FOR ALL LEGAL PROCEEDINGS SHALL BE IN DENTON COUNTY, TEXAS. 9.5 Contract Claims Resolution. The dispute resolution process that is provided for in Texas Government Code, Chapter 2260 shall be used by the Parties hereto in an attempt to resolve any unresolved claim for breach of contract or any other claimed default arising under this Agreement. Pursuant to said Chapter 2260, the submission, processing, and resolution of any claim made by CITY and/or CUSTOMER is governed by the published rules adopted by the Office of the Texas Attorney General, as are currently effective, hereafter enacted, or subsequently amended. 9.7 General. This Agreement and the Exhibits hereto constitute the entire agreement between the Parties relating to the subject matter contemplated by this Agreement; or any other agreement or agreements addressing or purporting to address the supply or purchase of Power. No amendment or modification to this Agreement shall be enforceable unless reduced to writing and executed by both Parties with authorization from the CUSTOMER and the Denton, Texas City Council. This Agreement shall not impart any rights enforceable by any third -party other than a permitted successor or assignee bound to this Agreement. No waiver by a Party of any default by the other Party shall be construed as a waiver of any other default. The term "including" when used in this Agreement shall be by way of example only and shall not be considered in any way to be in limitation. The headings used herein are for convenience and reference purposes only. POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with the provisions of Texas Government Code, Section 552.101, 552.104, SS2.110 andlor S52.133, and may be protectedfrom required public disclosure SPR 17567147.2 DocuSign Envelope ID: 2AE7D681-EC5A-4C88-BB7B-E6ADDE7E0930 9.8 Release. To the extent authorized by the laws of the State of Texas, as additional consideration for entering this Agreement, each Party hereby RELEASES, ACQUITS, and FOREVER DISCHARGES the other Party, their respective predecessors, successors, assigns, owners, governing bodies, partners, members, managers, employees, directors, City Council Members, City staff, legal representatives, insurers, independent contractors, agents, and attorneys, of and from any and all liability, claims (including contractual claims), demands, damages, attorney's fees, costs, liens, whether statutorily provided or otherwise, expenses, services, actions, causes of action, or suits in equity, of whatsoever kind or nature, whether heretofore or hereafter accruing, which the Party now has, arising out of the prior conduct of CUSTOMER and CITY relating the furnishing of electric Power to CUSTOMER by CITY. 9.9 Confidentiality. To the extent permitted by law, the Parties agree to maintain the confidentiality of all information acquired in the performance of the Agreement relating to the activities or operations of the other Party. This document is intended to be a Power Purchase Agreement and is therefore exempt from public disclosure under the provisions of Texas Government Code, Sec. 552.133(a -1)(1)(C) and (F). The Parties each agree not to divulge any such information to any third party without first providing written notice to the other Party and giving such Party the reasonable opportunity to avail itself of all rights and remedies as set forth in Chapter 552 of the Texas Government Code, commonly referred to as the Texas Public Information Act. [SIGNATURE PAGE FOLLOWS] POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially sensitive, proprietary, andlor public power utility competitive and financial information in accordance with tite provisions of Teras Government Code, Section 552.101, S52.104, 552.110 and/or 552.133, antimay be protectedfrom required public disclosure SPR 17567147.2 DocuSign Envelope ID: 2AE7D681-EC5A-4C88-BB7B-E6ADDE7E0930 The Parties have executed this Power Purchase Agreement in two (2) original counterparts, each of which shall be deemed an original, to be construed to be effective as of the Effective Date. ATTEST: ROSA RIOS, CITY SECRETARY APPROVED AS TO LEGAL FORM: CATHERINE CLIFTON, INTERIM CITY ATTORNEY dgtl l lv 1i00 ndtya}eAne . di ord �wm.a�ugofeaitan.drxodea, cu=nepartmemvg:ena­ps, u�Ceiural Garemmwy oirlegal, cm­ I2t[xttnecl�hn�u�cfeenxmi�em oa l� mzao9� a s� a nx asror "CITY" THE CITY OF DENTON, TEXAS a Texas municipal corporation and home -rule city Sara Hensley Interim City Manager "CUSTOMER" O'REILLY HOTEL PARTNERS — DENTON, LLC, a Missouri limited liability company Er1OocuSi9nW 6y: we� 11. Q-'A� 1E593A8"11214111_j By Name: "1'imothy B. OReilly Title: Manager POWER PURCHASE AGREEMENT This document and any attachments or appendices thereto may contain information that is confidential, commercially -sensitive, proprietary, and/or public power utility competitive and financial information in accordance with tine provisions of Texas Government Code, Section 552.101, 552.104, 553.114 and/or 552.133, and may he protected from required public disclosure SPR 17567147.2