2000-152NOTE ~mended by Ordinance No 2000-162
ORDINANCE NO ,~qOt~/5)-/,~-~'~
AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR,
AUTHORIZING, AND APPROVING AN AGREEMENT BY AND BETWEEN THE
CITY 'OF DENTON AND APPLIED UTILITY SYSTEMS, INC PERTAINING TO
THE PURCHASE OF COMBUSTION TECHNOLOGY EQUIPMENT AND
RELATED SPECIALIZED PROFESSIONAL ENGiNEERING SERVICES
RESPECTING DENTON MUNICIPAL ELECTRIC, WHICH EQUIPMENT IS
AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE
PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM THE
REQUIREMENTS OF COMPETITiVE BIDS, AND WHICH PROFESSIONAL
SERVICES ARE EXEMPT FROM THE COMPETITIVE BIDDING PROVISIONS OF
STATE LAW, APPROVING THE EXPENDITURE OF FUNDS THEREFOR, AND
PROVIDING AN EFFECTiVE DATE
WHEREAS, Denton Mun~mpal Electric ("DME") is a mummpally-owned electric
utlhty which qualifies as a "Public Power Utility" under the provm~ons of Senate Bill 7
enacted by the 76th Texas Legislature The City has determined that it is necessary and
appropriate at th~s time, in order to improve efficiency and to comply with applicable
governmental regulations, to utilize combustion technology eqmpment and related
specialized professional engmeenng service in order to modify and retrofit certam units
of the City's Spencer Steam Power Plant, and
WHEREAS, the combustion technology equipment provided for in the
Agreement and Purchase Order is exempted from state competitive bidding requirements
under the sole source exception to the competitive statute, as utility services that are
avmlable from one source because of natural monopolies or secret processes, as provided
by Sections 252 022(a)(7)(A) and (C) of the Texas Local Government Code, and
WHEREAS, the combustion technology equipment and the professional
engmeenng services provided for in the Agreement and Purchase Order attached hereto
("Agreement") are also exempted from state competitive bidding requirements as a
procurement necessary to protect the public health or safety of the City's residents, as
provided by Section 252 022(a)(2) of the Texas Local Government Code, and
WHEREAS, the professional engmeenng services provided for in the Agreement
are exempted from state competitive bidding requirements as a procurement for
professional services, as provided by Section 252 022(a)(4) of the Texas Local
Government Code, and, the City, m procunng the professional englneenng services for
this pro3ect, has extensively searched, and has selected the most highly qualified provider
of those services on the basis of demonstrated competence and qualifications, and has
negotiated an agreement with the provider at a fair and reasonable price, as provided by
Section 2254 004(a) of the Texas Government Code, and
WHEREAS, m accordance with the provisions of Section 551 086 of the Texas
Government Code, and after public notice having been given in the form and in the
manner as provided by apphcable law, the City Council, a "Pubhc Power Utd~ty
Govermng Body" under Senate Ball 7, has received information from Staff, d~scussed,
deliberated, and considered the approval of this Agreement in its Closed Meeting on the
18th day of April, 2000, after first determunng by a majority vote of its members, as
required by law, that the consideration of this Agreement by the City Council ~s related to
DME'S competitive act~wty, lncluchng commercial ~nformanon, whmh if d~sclosed,
would,g~ve advantage to ~ts competitors or prospective compentors, and the City Cotmcd,
thereafter, in ~ts Open Meeting on the 18th day of April, 2000 proceeded to consider and
take final action on the passage of ttns ordinance and approval of the Agreement, and the
C~ty Council voted to approve the Agreement, SUBJECT HOWEVER, to the following
CONDITION The Agreement ~s approved contingent upon the Texas Natural Resource
Conservation Commission ("TNRCC") adopting rules substantmlly ~n the form presently
proposed by the TNRCC staff, and on the Pubhc Uttht~es Comnusslon of Texas ("PUC")
making a commitment to begin a formal rulemaklng process by a date certain that
provides cost recovery of (1) Fixed and variable operating costs of the Spencer plant
above the market cleanng price of energy, and, (2) The investment in the NOx emission
momtonng and controls eqmpment
WHEREAS, the C~ty Council has further determined that the Agreement to be
entered into by and between the City and Applied Unhty Systems, Inc ("AUS") should
be exaepted from any public thsclosure, to the extent lawfully possible, as permitted by
the provisions of Section 552 131 of the Texas Government Code, as a document that is
reasonably related to a compet~nve electric matter, the disclosure of which document
would prowde an advantage to DME's competitors or prospective competitors, and
WHEREAS, the C~ty Council deems it in the public interest for the City of
Denton to enter into the Agreement w~th Applied Utility Systems, Inc, NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAiNS
SECTION 1 That the remtat~ons and findmgs set forth in the preamble
heremabove are hereby approved and made a part of th~s ordinance
SECTION 2 That once the here~nabove-descnbed cond~non is satisfied or
ehmmated, then the C~ty Manager ~s hereby authorized to execute an Agreement and
Purchase Order by and between the C~ty of Denton, Texas and Apphed Utd~ty Systems,
Inc for the purchase of combustion technology equipment and related professional
englneenng serwces, m substantmlly the form of the Agreement and Purchase Order
attached hereto and incorporated herewith by reference, and at that t~me the City
Manager ~s hereby further authorized to ~ssue a written not,ce to AUS to commence work
on the project
SECTION 3 That the expenditure of ftmds as provided ~n the Agreement is
hereby authorized at such time as the heremabove-descnbed condition is satisfied or
ehm~nated, and the C~ty Manager has executed the Agreement and Purchase Order on
behalflof the City
SECTION 4 That except as otherwme provided ~n Sections 2 and 3 herein, this
ordinance shall become effective ~mmedlately upon its passage and approval
PASSED AND APPROVED this the 18th day of April, 2000
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ATTEST
JENNIFER WALTERS, CITY SECRETARY
APROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
S \Our Doeum~nts\Ordmances\00~Apphed Utlhty Systems lnc DME Ord Vote in Open Final doc