23-1691FILE REFERENCE FORM
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ORDINANCENO. 23- 1691
AN ORDINANCE OF THE CITY OF DENTON REPEALING ORDINANCE NO. 22-.834:
APPROVING THE 2023 DENTON MUNICIPAL ELECTRIC - ENERGY RISK
MANAGEMENT POLICY (THE “2023 ERMP”); DELEGATING AUTHORITY AS
PROVIDED IN THE 2023 ERMP; AUTHORIZING AND APPROVING THE
SUBSEQUENT EXECUTION OF SUCH OTHER ANCILLARY AND RELATED
DOCUMENTS, INCLUDING. WITHOUT LIMITATION, CONTRACTS, NOMINATIONS,
CERTIFICATES, ASSIGNMENTS, LICENSES, DIRECTIONS, INSTRUMENTS,
CONFIRMATIONS, ORDERS, AND STATEMENTS AS ARE AUTHORIZED BY THE
2023 ERMP, WHICH ARE INCIDENT TO OR RELATED THERETO; CONFIRMING
THAT THE CITY OF DENTON, ITS MAYOR, ITS CITY COUNCIL MEMBERS. ITS
CITY MANAGER, ITS CITY ATTORNEY, AND ITS CITY SECRETARY ARE
AUTHORIZED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE
REASONABLY REQUIRED TO CONSUMMATE THOSE FUTURE TRANSACTIONS
WHICH ARE PROVIDED FOR AND AUTHORIZED BY THE 2023 ERMP: FINDING
THAT THE PURCHASE OF ELECTRICITY, NATURAL GAS, AND RELATED
COMMODITIES AND INSTRUMENTS ARE EXEMPT FROM THE REQUIREMENTS
OF COMPETITIVE BIDDING; FINDING THAT THE PURCHASE OF ELECTRIC
ENERGY, NATURAL GAS, AND RELATED COMMODITIES AND INSTRUMENTS
MADE BY THE CITY UNDER THE TERMS OF THE 2023 ERMP ARE IN THE PUBLIC
WELFARE OF THE CITIZENS AND ELECTRIC RATEPAYERS OF THE CITY:
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND, PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton (“City”), a Texas home-rule municipal corporation
governed by the constitution and laws of the State of Texas, operates a municipally-owned
electric utility; and
WHEREAS, on June 7, 2022, the City Council (“Council”) passed Ordinance No. 22-
834 which repealed the 2021 Denton Municipal Electric - Energy Risk Management Policy
and approved the 2022 Denton Municipal Electric - Energy Risk Management Policy (“2022
ERMP”); and
WHEREAS, the 2022 ERMP requires that it be reviewed, amended if necessary, and
approved annually by the Council; and
WHEREAS, the Council has determined and finds that (i) the 2023 ERMP provides for
the purchase of electricity, natural gas, related commodities and instruments in the future in
strict accordance with the provisions of the 2023 ERMP; (ii) any and all contracts and other
documents that are required to be entered into by and between the buyers or sellers of electric
energy, natural gas, and related commodities and instruments and the City are, (a) provided that
these transactions are within the described and delineated limits and guidelines which are set
forth in the 2023 ERMP, authorized, and (b) excepted from public disclosure, as permitted by
the provisions of Section 552.133, Texas Government Code, as documents that are reasonably
related to the competitive public power matter, the disclosure of which documents would
provide an advantage to the competitors or prospective competitors of Denton Municipal
Electric; and, (iii) all such documents which are incident to or related with the above-described
documents, as from time to time may be required by the City and/or the seller, are (a)
authorized, and (b) should be excepted from public disclosure, as permitted by the provisions
of Section 552.133, Texas Government Code, as documents that are reasonably related to a
competitive public power matter, the disclosure of which documents would provide an
advantage to the competitors or prospective competitors of Denton Municipal Electric; and
WHEREAS, the Council has determined and finds that the 2023 ERMP will not impair
the ability of the City to comply with the provisions of any of its utility revenue bonds, as
amended, which are now issued and outstanding; and
WHEREAS, the Council has determined and finds that both (i) Sections
252.022(a)(15) and 252.022(c) of the Texas Local Government Code are applicable to the
2023 ERMP, and those subsequent transactions authorized by said 2023 ERMP involving the
purchase of electricity, natural gas, and related commodities, and (ii) the Texas statutory
competitive bidding law are not applicable to such purchases by the City; and
WHEREAS, the Council has further determined and finds that these actions and the
2023 ERMP are in the best interest of its citizens and ratepayers ;
NOW THERFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY
ORDAINS :
SECTION 1. The finding and recitations contained in the preamble of this ordinance
are incorporated herein by reference and are made a part of this ordinance.
SECTION 2. Ordinance No. 22-834, and the 2022 Denton Municipal Electric - Energy
Risk Management Policy (commonly referred to as the 2022 ERMP) approved by the same,
are both repealed and are of no further force and effect, except that all transactions made under
the 2022 ERMP remain protected from disclosure Section 552.133, Texas Government Code.
SECTION 3. The 2023 Denton Municipal Electric - Energy Risk Management Policy
(“2023 ERJV[P”), attached as Exhibit “A“ and incorporated by reference, is approved and
adopted.
SECTION 4. The City Manager, or their designee, and the City Secretary, or their
designee, are authorized to execute, attest, and deliver respectively, all contracts which are
authorized by the 2023 ERMP, and other such documents which are incident to, or related to,
or which arise under the same (“Related Documents”), and to take such other additional actions
as the City Manager, or their designee, shall determine to be necessary and appropriate to
effectuate the matters set forth in this Ordinance and the 2023 ERMP.
SECTION 5. All subsequent actions taken by the Mayor, or their designee; the City
Manager, or their designee; the City Attorney, or their designee; or the City Secretary, or their
designee in furtherance of any future transactions that are authorized under the 2023 ERMP
are approved and authorized in all respects as of the dates and times that such actions are taken.
SECTION 6. Immediately following the adoption by the Council of the 2023 ERMP,
any and all subsequent documents and supporting documents which are executed pursuant to
the 2023 ERMP as amended are to be sealed by the City Secretary and maintained in their
custody and control as documents which are excepted from public disclosure under the
provisions of §552.133 of the Texas Government Code (the “Public Power Exception”); unless
otherwise law fully ordered to disclose said documents.
SECTION 7. The expenditure of funds as provided for in this ordinance is hereby
authorized.
SECTION 8. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this ordinance was made by B,,_ ),._ eLk h,6,c and
„,,„d,d by]. Thi, „di„,„„ w„ p„„d ,„d ,pp„,,d by th,
following vote [ 7 - D ]:
Ay)
t/
7
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I
,/7
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 thI, th, II"'d,y ,f OC+'L+ /_, 2023 .
GERARD HUDSPET LI, MAYOR
ATTEST:
JESUS SALAZAR, CITY SECRETARY b\\\\1l111111
BY:
APPROVED AS TO LEGAL FORM: MACK
REINWAND, CITY ATTORNEY
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Date: 2023.09.06 10:55: 16 -05'00'
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