1999-475 NOTE. Agreement is exempt from public disclosure under provisions of
Section 552.131 of the Texas Government Code (Public Power Exception)
ORDINANCE NO
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE AN INTERRRUPT1BLE NATURAL GAS TRANSPORTATION
AGREEMENT BY AND BETWEEN THE CITY OF DENTON AND TXU LONE STAR
PIPELINE, A DIVISION OF TXU GAS COMPANY, PERTAINING TO NATURAL GAS
REQUIREMENTS FURNISHED TO THE SPENCER STEAM POWER PLANT,
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, Denton Mummpal Electric ("DME") m a mumc~pally-owned electric utd~ty
whmh quahfies as a "Pubhc Power Utllnty" under the provmnons of Senate Bill 7 enacted by the
76m Texas Legtslature DME Staff has determined that nt m necessary at thru t~me to acqmre
natural gas to prowde for and supply the natural gas fuel needs and reqmrements for nts
Production D~wston located at the Spencer Steam Power Plant nn order for it to produce and
generate electric energy to DME's customers, and
WHEREAS, the gas utthty serwces promded for nn the Intermpt~ble Natural Gas
Transportation Agreement ("Agreement") are exempted fi.om competnt~ve bnddmg reqmrements
under the solo soume exception to the competnt~ve bnddmg statute, as gas utility services that are
available from one source because of natural monopohes, as promded by Section 252 022
(a)(7)(C) of the Texas Local Government Code, and
WHEREAS, nn accordance w~th the prommons of Section 551 086 of the Texas
Government Code, after pubhc notme, the C~ty Counml, a "Pubhc Power Utd~ty Governing
Body" under Senate Bali 7, has dmcussed, dehberated, and conmdered the matter of thru
Agreement ~n a Closed Meetnng on the 14th day of December, 1999, after determ~mng by a
prehmmary majority vote of Its members, that the conmderat~on of thru Agreement m related to
DME's competmve actlwty, ~ncludmg commercml nnformat~on, whmh ~f dmclosed, would g~ve
advantage to ~ts competRors or prospecttve competitors, and the C~ty Council, by a vote taken m
smd Closed Meeting, voted for approval of the Agreement, and
WHEREAS, the C~ty Council has further determined that the "Agreement" to be entered
~nto by and between the C~ty and TXU Lone Star P~pelme, a Dnwmon of TXU Gas Company, a
Texas Corporatton ("Lone Star") should be excepted fi.om any pubhc dmclosure, as permitted by
the provnmons of Section 552 131 of the Texas Government Code, as a document that ns
reasonably related to a competitive electric matter, the dmclosure of whtch document would
prowde an advantage to DME's competitors or prospectnve competitors, and
WHEREAS, the C,ty Council deems ~t ~n the pubhc ~nterest for the City of Denton to
enter ~nto the Agreement, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the remtatlons and findings set forth in the Preamble herelnabove are
hereby approved and made a part of this Ordinance
SECTION 2 That the City Manager is hereby authorized to execute an Interruptlble
Natural Gas Transportation Agreement ("Agreement") by and between the City of Denton,
Texas and TXU Lone Star Pipeline, a Division of TXU Gas Company, a Texas Corporation, for
natural gas requirements furnished to the Spencer Steam Power Plant of Denton Municipal
Electric, in substantially the form of the Agreement attached hereto and incorporated herewith by
reference
SECTION 3 That following the execution and delivery of the Agreement, the City
Secretary is hereby directed to seal and maintain said Agreement in her custody and control, as a
document excepted from public d~sclosure under the provisions of Section 552 131 of the Texas
Government Code (the "Public Power Exception"), unless otherwise lawfully ordered to d~sclose
said Agreement
SECTION 4 That the expenditure of funds as provided in the attached Agreement ~s
hereby authorized
SECTION 5 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the /4~'/~_ day of ~ ,1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY