2000-162 O IN CE NO etaa -/6a
AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE
LIFTING AND CANCELLATION OF THE CONDITION EXPRESSED AND SET
FORTI-I IN ORDINANCE NO 2000-152, AS ENACTED BY THE COUNCIL ON
APRIL 18, 2000, FOR FINAL ACTION UNCONDITIONALLY APPROVING THE
AGREEMENT AND PURCHASE ORDER ENTERED INTO BY AND BETWEEN
THE CITY OF DENTON AND APPLIED UTILITY SYSTEMS, INC FOR THE
PURCHASE OF COMBUSTION TECHNOLOGY EQUIPMENT AND RELATED
PROFESSIONAL ENGINEERING SERVICES, APPROVING THE EXPENDITURE
OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Denton Mumelpal Electric ("DME") is a mumclpally-owned electric
utility which quahfies as a "Pubhc Power Utility" under the provisions of Senate Ball 7
enacted by the 76th Texas Legislature The City has determined that it IS necessary and
appropriate at this time, m order to improve efficiency and to comply with applicable
govemmantal regulations, to utthze combustion technology equipment and related
specaahzed professional enganeenng serwces in order to modify and retrofit certain umts
of the City's Spencer Steam Power Plant, and
WHEREAS, the City Council considered the matter of the approval of an
Ordinance authorizing and approving an Agreement and Purchase Order ("Agreement")
by and between the Clty of Denton and Applied Utthty Systems, Inc, respecting the
equipment and services referred to In the immediately preceding paragraph, at its April
18, 2000 meeting, and the City Cotmcfl, having convened this matter an its Closed
Meeting, as permitted by law, and hawng dasanssed the same, elected to proceed to final
action and detenmnat~on of the matter in its Open Meeting, and
WHEREAS, the City Council, in its Open Meeting, voted to unanimously
approve an Ordinance authorizing and approwng the Agreement, provided however, the
C~ty Council approved the Agreement subject to the following condition which was
expressed In the Preamble to Ordinance No 2000-152, to wit
'°the Agreement is approved contingent upon the Texas Natural Resource Conservation
Commission ("TNRCC") adopting rules substantially in the form presently proposed by
the TNRCC staff, and on the Public Utllmes Commission of Texas ("PUC") making a
comnutment to began a formal rulemakmg process by a date certain that prowdes cost
recovery of (1) Fixed and variable operating costs of the Spencer plant above the market
cleanng price of energy, and, (2) The ~nvestment in the NOx emlssmn monitonng and
controls eqmpment"
WHEREAS, m the two (2) weeks immediately following the enactment of
Ordinance No 2000-152, Staff has detenmned that the applicable facts and
c~rcumstanees which gave nsc to the necessity of the City Council conditioning the final
approval of the Ordinance and the Agreement, have materially changed, and Staff has
expressed and recommended to the City Council that it consider hftmg and cancelling the
condI~on expressed in the immediately preceding paragraph, and
, WHEREAS, in accordance w~th the provisions of Section 551 086 of the Texas
Government Code, and after public notice having been g~ven m the form and in the
manner as proxaded by applicable law, the C~ty Council, a "Public Power Governing
Body" under Senate Bill 7, has received information from Staff, discussed, dehberated,
and considered the matter of the final, unconditional approval of the Agreement an 1ts
Closed Meeting on the 2na day of May, 2000, after first determining by a majority vote of
its members, as reqmred by law, that the consideration of flus Agreement by the City
Council ~s related to Denton Municipal Electnc's ("DME") competitive activity,
Including commercial information, wtuch if disclosed, would gtve advantage to ~ts
competitors or prospective competitors, and the City Council, thereafter, in ~ts Open
nd
Meeting on the 2 day of May, 2000, proceeded to consider and take final action on the
unconditional passage of the Ordinance approving the Agreement, and the C~ty Council
voted to hft and cancel the heremabove-referred to condition as of the 2na day of May,
2000, resulting m the City Council's final, tmcond~t~onal approval of the Agreement, the
Ordinance, and authorizing the expenditure of funds pursuant to the Agreement, and
WHEREAS, the City Council has further determined that the Agreement to be
entered Into by and between the City and Applied UtIhty Systems, Inc ("AUS") should
be exoepted from any pubhe disclosure, to the extent lawfully possible, as permitted by
the prowslons of Section 552 131 of the Texas Government Code, as a document that is
reasonably related to a competitive electric matter, the disclosure of which document
would, provide an advantage to DME's competitors or prospective competitors, and
WHEREAS, the C~ty Council deems ~t in the pubhc interest for the City of
Denton to enter into the Agreement w~th Apphed Utility Systems, Ine, NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the recitations and findings set forth In the preamble
heremabove are hereby approved and made a part of this ordinance
, SECTION 2 That the herelnabove-descnbed condition is hfted and cancelled,
and the City Manager is accordingly hereby authorized to execute an Agreement and
Purchase Order by and between the City of Denton, Texas and Apphed Utility Systems,
Inc for the purchase of combustion technology equipment and related professional
englneenng services, m substantially the form of the Agreement and Purchase Order
attached to Ordinance No 2000-152, and ~ncorporated herewith by reference, and at that
t~me, or at any time thereafter, the City Manager ~s hereby further authorized to issue a
written not~ce to AUS to commence work on the project
2
SECTION 3. Now that the above-described condition to Ordinance No 2000-
152 has been ht~ed and cancelled, the expand~mre of funds as prowded ~n the Agreement
~s hereby authorized
SECTION4 Th~s ordinance shall become effective ~mmed~ately upon ~ts
passage end approval
PASSED AND APPROVED on ttus the 2nd day of May, 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
S \Our Doeumonts\Ordm ances\00~,AUS Ine-DME-Ord-Final Rmv Cond Vote Open doc
ORDINANCE NO
AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE
LIFTING AND CANCELLATION OF THE CONDITION EXPRESSED AND SET
FORTH IN ORDINANCE NO 2000-152, AS ENACTED BY THE COUNCIL ON
APRIL 18, 2000, FOR FINAL ACTION UNCONDITIONALLY APPROVING THE
AGREEMENT AND PURCHASE ORDER ENTERED INTO BY AND BETWEEN
THE CITY OF DENTON AND APPLIED UTILITY SYSTEMS, INC FOR THE
PURCHASE OF COMBUSTION TECHNOLOGY EQUIPMENT AND RELATED
PROFESSIONAL ENGINEERING SERVICES, APPROVING THE EXPENDITURE
OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, Denton Mumclpal Electric ("DME") m a mun~clpally-owned electric
utlhty ,winch qual~fies as a "Pubhc Power Utility" under the prowmons of Senate Bill 7
enacted by the 76 Texas Legislature The C~ty has determined that ~t ~s necessary and
appropriate at th~s t~me, m order to improve efficiency and to comply with apphcable
governmental regulations, to ut~hze combustion technology eqmpment and related
specm~zed professional engmeenng serwces m order to modify and retrofit certain umts
of the Caty's Spaneer Steam Power Plant, and
WHEREAS, the C~ty Council conmdered the matter of the approval of an
Ordmanee authonmng and approwng an Agreement and Purchase Order ("Agreement")
by and between the C~ty of Denton and Apphed Utility Systems, Inc, respectmg the
eqmpraent and serwees referred to m the ~mmedmtely preceding paragraph, at ats April
18, 2000 meetmg, and the C~ty Council, hawng convened this matter m ~ts Closed
Meetang, as penmtted by law, and havang dmeussed the same, elected to proceed to final
action and deterrmnat~on of the matter m ~ts Open Meenng, and
WHEREAS, the C~ty Council, m ~ts Open Meetmg, voted to unanimously
approve an Or~hnanee anthonzmg and approving the Agreement, provided however, the
Ctty Council approved the Agreement subject to the following condition which was
expressed ~n the Preamble to Ordanance No 2000-152, to w~t
"The ,Agreement m approved contmgent upon the Texas Natural Resource Conservatmn
Commission ("TN-RCC") adopting rules substantmlly ~n the form presently proposed by
the TN-RCC staff, and on the Publac Utlht~as Commission of Texas ("PUC") mal~ng a
commitment to begin a formal rulemakmg process by a date certain that prowdes cost
recovery of (1) F~xed and variable operating costs of the Spencer plant above the market
clearing price of energy, and, (2) The investment in the NOx em~smon momtonng and
controls eqmpment"
' WHEREAS, ~n the two (2) weeks ~mmed~ately following the enactment of
Ordinance No 2000-152, Staff has determined that the apphcable facts and
c~rcumstanees which gave nsc to the necesmty of the C~ty Council condmomng the final
approval of the Ordinance and the Agreement, have materially changed, and Staff has
expressed and recommended to the C~ty Council that It consider hfting and cancelhng the
contht~on expressed in the immediately preceding paragraph, and
WHEREAS, m accordance w~th the provisions of Section 551 086 of the Texas
Govemmant Code, and after pubhc not,ce having been given In the form and m the
manner as proxaded by appheable law, the City Council, a "Public Power Govermng
Body" under Senate Bill 7, has received information from Staff, discussed, deliberated,
and considered the matter of the final, unconditional approval of the Agreement in ars
Closed Meeting on the 2na day of May, 2000, after first determ~mng by a majority vote of
its members, as required by law, that the consideration of this Agreement by the City
Council is related to Denton Mumcipal Eleetnc's ("DME") competitive activity,
including commercial reformation, which ff disclosed, would give advantage to its
competitors or prospective competitors, and the C~ty Council, thereafter, in its Open
Meeting on the 2nd day of May, 2000, proceeded to consider and take final action on the
uncondlt~onal passage of the Ordinance approving the Agreement, and the City Council
voted to lift and cancel the herelnabove-referred to condition as of the 2nd day of May,
2000, resulting in the City Council's final, unconditional approval of the Agreement, the
Ordinance, and authorizing the expenditure of funds pursuant to the Agreement, and
WHEREAS, the City Council has further determined that the Agreement to be
entered into by and between the City and Applied Utlhty Systems, Inc ("AUS") should
be excepted fi'om any public disclosure, to the extent lawfully possible, as permitted by
the provisions of Section 552 131 of the Texas Government Code, as a document that ~s
reasonably related to a competitive electric matter, the disclosure of which document
would provide an advantage to DME's competitors or prospective competitors, and
WHEREAS, the City Council deems ~t in the pubhc interest for the City of
Denton to enter into the Agreement with Applied Utility Systems, Inc, NOW
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
~ That the recitations and findings set forth in the preamble
heremabove are hereby approved and made a part ofth~s ordinance
SECTION 2 That the hereinabove-descnbed condition is hfted and cancelled,
and the City Manager ~s accordingly hereby authorized to execute an Agreement and
Purchase Order by and between the City of Denton, Texas and Apphed Utility Systems,
Inc for the purchase of eombustton teelmology eqmpment and related professional
engmeenng serwees, in substantially the form of the Agreement and Purchase Order
attached to Ordinance No 2000-152, and incorporated herewith by reference, and at that
time, or at any time thereafter, the City Manager ~s hereby further authorized to issue a
written notice to AUS to commence work on the project
~ Now that the above-described con&t~on to Ordinance No 2000-
152 has been lifted and cancelled, the expen&ture of funds as prowded m the Agreement
is hereby authorized
SECTION4 Th~s ordinance shall become effective ~mmedmtely upon ~ts
passage and approval
PASSED AND APPROVED on th~s the 2nd day of May, 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
S \Our Docum~nts\Ordmances\OO~AUS Ine DME-Ord Final Rmv Cond Vote Open doe