23-766 INCOMPLETEORDINANCENO. 23-766
AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL
CORPORATION, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT
NUMBER ONE (1) TO THE POWER PURCHASE AGREEMENT BETWEEN THE CITY ANDCORE SCIENTIFIC, INC., A DELAWARE CORPORATION; PROVIDING FOR ANEFFECTIVE DATE.
WHEREAS, the City of Denton (“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 and Core Scientific, Inc entered into a Power Purchase Agreement
(“PPA”) dated September 3, 2021 for the City’s provision of electric energy and related services
to a to-be-constructed data center on property to be leased from the City;
WHEREAS, the City and Core Scientific, Inc. have agreed to terms and conditions to the
first amendment to the PPA (Amendment No. 1) as Exhibit “A“ and incorporated herein for all
purposes; and
WHEREAS, the City Council finds that Amendment No. 1 to the PPA should be sealed
and exempted from public disclosure, as permitted by the provisions of §552.133 of the Texas
Government Code, as a document that is reasonably related to a competitive electric matter, the
disclosure of which would provide an advantage to the competitors or prospective competitors of
the City’s municipal electric operation (“Competitive Information”); and
WHEREAS, the City Council finds that it is in the public interest that it exercises its right
under the Texas Government Code to lawfully safeguard and keep Amendment No. 1 to the PPA
sealed, as it contains competitive electric commercial and financial information; and
WHEREAS, the City Council finds that it is in the public interest that a copy of
Amendment No. 1 to the PPA, redacted of Competitive Information, be made available to the
public; and
WHEREAS, the City Council further finds that Amendment No. 1 to the PPA is in the best
interest of the customers. NOW, THEREFOR,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations contained in the preamble of this ordinance are incorporated
herein by reference as findings of the City Council.
SECTION 2. The City Council approves and authorizes the City Manager, or their
designee, and City Secretary, or their designee, to execute, attest and deliver, respectively,
Amendment No. 1 to the PPA, attached as Exhibit “A”, with Core Scientific, Inc.
SECTION 3. The City Council approves and authorizes the City Manager, or their
designee, to take such additional actions as the City Manager, or the designee, determines to be
necessary and advisable to continue to effectuate the purpose, terms, and conditions of AmendmentNo. 1 to the PPA.
SECTION 4. Immediately following the execution, attestation, and delivery of
Amendment No. 1 to the PPA, the City Secretary is directed to seal and maintain the PPA in their
custody and control, as documents excepted from public disclosure under the provisions of Texas
Government Code, Section 552.133 unless otherwise lawfully ordered to disclose said documents.
SECTION 5. A copy of Amendment No. 1 to the PPA, redacted of Competitive
Information, attached Exhibit “B”, shall be available to the public for inspection and copying.
Absent lawful order, the Amendment No. 1 to the PPA and the original PPA shall not be available
for public inspection or copying and will be sealed as provided for in the preceding section.
SECTION 6. This ordinance shall become effective immediately upon its passage and
approval.
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the following vote L 7 - CJ:
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Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Paul Meltzer, District 3 :
Joe Holland, District 4:
Brandon Chase McGee, At Large Place 5 :
Chris Watts, At Large Place 6:
PASSED AND APPROVED this the IS dayof Aut)+, 2023.
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ATTEST:
JESUS SALAZAR, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY