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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