HomeMy WebLinkAboutResolution - 2022-R0025 - Termination of Gas Purchase Contract with Texas Municipal Gas Corp.Resolution No. 2022-R0025
Item No. 7.35
January 11, 2022
RESOLUTION
WHEREAS, Lubbock Power & Light ("LP&L") is the municipally owned
electric utility of the City of Lubbock;
WHEREAS, by Purchase Contract, Resolution Number 5819, dated April
9, 1998 ("Original Agreement"), by and between the City of Lubbock (the
"City"), as Buyer, the City of La Grange ("Agent"), as agent, and Texas
Municipal Gas Corporation ("TMGC") (collectively referred to as the "Parties",
and individually as "Party"), the Parties contracted for Agent to deliver
Nominated Quantities of Gas and to deliver same to City equal to Buyer's Annual
Quantities or Requirements, whichever is less, in a Contract Year under the terms
and conditions set out therein (all definitions not defined herein are defined in the
Original Agreement);
WHEREAS, by Contract Waiver, Resolution No. 2001-R0067, dated
February 15, 2001, by and between the City and TMGC, the City waived
TMGC's obligation under the Original Agreement to provide the City seventy
five (75) days' notice of the issuance of the principle amount of bonds required
under certain conditions;
WHEREAS, by Extension of Gas Purchase Contract, Resolution Number
2001-R0263, dated June 26, 2001 ("Extension"), by and between the Parties, the
Parties extended the term of the Original Agreement to December 31, 2001, and
provided for other matters related to the term;
WHEREAS, the termination of the Original Agreement, as extended, now
only requires written notice by one Party to the other two Parties prior to
December 31, 2021;
WHEREAS, the City desires to terminate the Original Agreement, as
extended, according to the terms applicable to same;
WHEREAS, LP&L desires to terminate the Original Agreement, as
extended, to provide for such matters; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby ratifies, for and on
behalf of the City of Lubbock, the termination of that certain Purchase Contract,
Resolution Number 5819, dated April 9, 1998 ("Original Agreement"), by and
between the City of Lubbock as Buyer, the City of La Grange, as agent, and Texas
Municipal Gas Corporation ("TMGC") (collectively referred to as the "Parties"),
as subsequently amended, including but not limited to the following extensions
and/or amendments: (i) that certain Contract Waiver, Resolution No. 2001-
R0067, dated February 15, 2001, by and between LP&L and TMGC, (ii) that
certain Extension of Gas Purchase Contract, Resolution Number 2001-R0263,
dated June 26, 2001, by and between the Parties, and all other waivers,
amendments, or extensions, modifying the Original Agreement ("Extended
Purchase Contract"), as such termination is attached to this Resolution
("Termination").
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT the City Council of the City of Lubbock therefore herby ratifies, on
behalf of the City of Lubbock, the attached Termination and it is hereby ratified,
adopted, and confirmed by the City Council of the City of Lubbock as fully and
completely and the same as if originally authorized by the City Council of the
City of Lubbock as of the date written.
Passed by the City Council this 11 m day of January, 2022.
DANIEL M. POPE, Mayor
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Becky Garza, City Secretary
APPROVED AS TO CONTENT:
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David McCalla, Director of Electric Utilities
APPROVED AS TO FORM:
Je& Si u , LP&L General Counsel
APPROVED AS TO FORM:
Craig tnochs, Outside Counsel, LP&L
Resolution No. EUB 2021-R0102
WHEREAS, Lubbock Power & Light ("LP&L") is the municipally owned
electric utility of the City of Lubbock;
WHEREAS, by Purchase Contract, Resolution Number 5819, dated April
9, 1998 ("Original Agreement"), by and between the City of Lubbock (the
"City"), as Buyer, the City of LaGrange ("Agent"), as agent, and Texas
Municipal Gas Corporation ("TMGC") (collectively referred to as the "Parties",
and individually as "Party"), the Parties contracted for Agent to deliver
Nominated Quantities of Gas and to deliver same to City equal to Buyer's Annual
Quantities or Requirements, whichever is less, in a Contract Year under the terms
and conditions set out therein (all definitions not defined herein are defined in the
Original Agreement);
WHEREAS, by Contract Waiver, Resolution No. 2001-R0067, dated
February 15, 2001, by and between the City and TMGC, the City waived
TMGC's obligation under the Original Agreement to provide the City seventy
five (75) days' notice of the issuance of the principle amount of bonds required
under certain conditions;
WHEREAS, by Extension of Gas Purchase Contract, Resolution Number
2001-R0263, dated June 26, 2001 ("Extension"), by and between the Parties, the
Parties extended the term of the Original Agreement to December 31, 2001, and
provided for other matters related to the term;
WHEREAS, the termination of the Original Agreement, as extended, now
only requires written notice by one Party to the other two Parties prior to
December 31, 2021;
WHEREAS, the City desires to terminate the Original Agreement, as
extended, according to the terms applicable to same;
WHEREAS, LP&L desires to terminate the Original Agreement, as
extended, to provide for such matters; NOW, THEREFORE:
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF
LUBBOCK:
THAT the Director of Electric Utilities BE and is hereby authorized and
directed to terminate for and on behalf of the City of Lubbock, acting by and
through Lubbock Power & Light, the municipally owned electric utility of
Lubbock, Texas ("LP&L"), that certain Purchase Contract, Resolution Number
5819, dated April 9, 1998 ("Original Agreement"), by and between the City of
Lubbock as Buyer, the City of LaGrange, as agent, and Texas Municipal Gas
Corporation ("TMGC") (collectively referred to as the "Parties"), as subsequently
amended, including but not limited to the following extensions and/or
amendments: (i) that certain Contract Waiver, Resolution No. 2001-110067, dated
February 15, 2001, by and between LP&L and TMGC, (ii) that certain Extension
of Gas Purchase Contract, Resolution Number 2001-110263, dated June 26, 2001,
by and between the Parties, and all other waivers, amendments, or extensions,
modifying the Original Agreement (`Extended Purchase Contract"), and any
documents related thereto.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF
THE CITY OF LUBBOCK:
THAT the Electric Utility Board hereby recommends to the City Council of
the City of Lubbock to ratify the termination as provided herein.
Passed by the Electric Utility Board this 28'h day of December, 2021.
ATTEST:
APPROVED AS TO CONTENT:
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Dan Odom, Chairman
David McCalla, Director of Electric Utilities
APPROVED AS TO FORM:
Je S i LP&L General Counsel
APPROVED AS TO FORM:
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Craig Enochs, Outside Counsel, LP&L
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Lubbock Power & Light
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December 28, 2021
Texas Municipal Gas Corporation
Robert D. Murphy, Jr.
President
Municipal Energy Resources Corporation
Three Riverway, Suite 1900
Houston, Texas 77056
robert.murphy@munienergy.com
Via Email and Fed Ex Overnight
RE: Gas Purchase Contract, as extended in that Extension of Gas Purchase Contract dated June 26, 2001,
between City of Lubbock, Texas (the "City"), City of La Grange, Texas, and Texas Municipal Gas
Corporation ("TMGC") (the "Agreement").
Dear Mr. Murphy:
This letter will serve as notice of the City's election to terminate the Agreement as of December 31,
2021. Please direct any questions to my attention at the letterhead address.
Sincerely,
City of Lubbock, Texas, acting by and through
Lubbock Power & Light
Name: David McCalla
Title: Director, Electric Utilities
Cc: Rick Weber
Norton Rose Fulbright
1301 McKinney
Suite 5100
Houston, Texas 77010
fredric.weber@nortnrosefulbright.com
Jan Dockery
Mayor
City of LaGrange, Texas
155 E. Colorado St.
La Grange, TX 78945
mayordockery@cityoflg.com
1314 Ave. K., 5" Floor I Lubbock, Texas 79401 1 806.775.2501 1 www.lpandl.com