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20-1245ORDINANCE NO.20- 1245 AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AMENDMENT NO. 2 TO THE TRANSMISSION OPERATOR MAINTENANCE AGREEMENT BETWEEN THE CITY OF DENTON, A TEXAS MUNICIPAL HOME-RULE CORPORATION, AND THE TEXAS MUNICIPAL POWER AGENCY, A TEXAS JOINT POWERS AGENCY, THAT EXTENDS THE TERM OF THE EXISTING AGREEMENT TO SEPTEMBER 1, 2022; AUTHORIZING THE EXPENDITURE OF FUNDS; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton operates a municipally-owned electric company and is a founding member of the Texas Municipal Power Agency; and WHEREAS, TMPA owns transmission assets located in Denton that deliver electric power to the City of Denton; and WHEREAS, on September 1, 2015, TMP A and the City entered an agreement whereby DME would construct, operate and maintain TMPA 138kV transmission assets in the Denton area; and WHEREAS, the City has been constructing, operating, and maintaining TMPA’s electric transmission infrastructure in Denton County for several years to the satisfaction of both parties; and WHEREAS, the September 1, 2015, Transmission Operator Maintenance and Construction Services Agreement, as amended by Amendment No. 1 (Ordinance No. 18-1218 passed on August 21, 2018), expires on September 1, 2020; and WHEREAS, TMP A and the City desire to continue operating under the existing agreement and wish to extend it to September 1, 2022; and WHEREAS, the Public Utility Board has considered this matter and recommended that the City Council approve and authorize the execution of the requisite amendment of the existing agreement; and WHEREAS, the City Council finds that this ordinance is in the best interest of both the citizens and ratepayers; NOW THEREFORE; THE COUNCIL OF THE 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 (a) to execute on behalf of the City (i) the agreement, or agreements, substantially in the form of the attached Exhibit " A"; and, (ii) any other documents necessary for fulfilling the terms and conditions of the agreement or agreements; and (b) to make expenditures in accordance with the terms of the agreement and agreements. 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 p01iions 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 mot{on to approxe this Ordinance was made by da the Ordinance was passed anIseconded by J r\z/kU the following le and al)proved by Aye 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: ,// L./ b/ b/ LZ 14 Z PASSED AND APPROVED this the 2d day of July 2020. CHRIS WATTS. MAYOR ATTEST: ROSA RIOS, CITY SECRETARY 7 >2 APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY 10aOF7By: Bob Kahn General Manager