HomeMy WebLinkAboutOrdinance - 2019-O0138 - Re-Creating The West Texas Municipal Power Agency - 09/24/2019 First Reading Second Reading
September 10, 2019 September 24, 2019
Item No. 7.18 Item No. 6.36
ORDINANCE NO. 2019-00138
AN ORDINANCE OF THE CITY OF LUBBOCK, TEXAS RE-CREATIING
THE WEST TEXAS MUNICIPAL POWER AGENCY ("AGENCY")
THROUGH PASSAGE OF THIS ORDINANCE, CONCURRENTLY WITH
THE OTHER MEMBER PUBLIC ENTITIES OF THE AGENCY BY
DELETION OF THE CITY OF LUBBOCK, TEXAS AS A MEMBER
PUBLIC ENTITY OF THE AGENCY; FINDING THAT NO AGENCY
OBLIGATION WILL BE IMPAIRED BY THE RE-CREATION OF THE
AGENCY IN THE MANNER AUTHORIZED BY THIS ORDINANCE;
PROVIDING FOR AN EFFECTIVE DATE; DEFINING BOUNDARIES OF
THE RE-CREATED AGENCY; DESIGNATING THE NAME OF THE RE-
CREATED AGENCY; PROVIDING FOR A BOARD OF DIRECTORS;
DESIGNATING THE NUMBER, PLACE, TERMS AND MANNER OF
APPOINTMENT OF DIRECTORS; AND ORDAINING OTHER MATTERS
WITH RESPECT TO THE SUBJECT MATTER HEREOF.
WHEREAS, the West Texas Municipal Power Agency ("Agency") is a lawfully
constituted municipal power agency pursuant to V.T.C.A. Utilities Code Chapter 163,
Subchapter C ("the Act") comprised of four public entities, City of Brownfield,Texas,
City of Floydada, Texas, City of Lubbock, Texas, and the City of Tulia, Texas, each
owning a municipally owned electric utility; and
WHEREAS,Section 163.055 of the Act provides that the public entities comprising
the Agency may, by passage of concurrent ordinances, delete a member public entity
and re-create the Agency; and
WHEREAS, the City of Lubbock, Texas has requested approval of the other
member public entities of the Agency to delete it as a public entity member of the
Agency, effective October 1, 2019, subject to certain terms and conditions set out
below; and
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WHEREAS, the Board of Directors of the Agency, with a quorum present,
approved by a vote of 7 in favor, 0 opposed, a motion to recommend
to their respective governing bodies of the public entities of the Agency that, subject to
certain conditions, they pass concurrent ordinances pursuant to Section 163.055 of the
Act approving the deletion of the City of Lubbock, Texas as a public entity of the
Agency and re-creating the Agency with the public entities of the City of Brownfield,
Texas, the City of Floydada, Texas, and the City of Tulia, Texas; describing the
boundaries of the Agency; retaining the Agency name of West Texas Municipal Power
Agency; designating the number, place, terns, and manner of appointment of the
directors; and finding no impairment of obligations by deleting the City of Lubbock,
Texas as a public entity of the Agency; and
WHEREAS,the governing body of the City of Lubbock, Texas, in full compliance
with its Charter or other applicable law, has duly placed on its Agenda this Ordinance
for first and second readings and finds that its approval would be in the public interest
of its citizens and electric ratepayers; now therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS, THAT
Section 1. The recitals contained in the preamble hereof are true and correct and
are adopted as findings of fact by this body.
Section 2. This governing body, in conjunction with the governing bodies of the
other above recited public entities, does, by this concurrent ordinance, delete the City
of Lubbock, Texas as a member City of the West Texas Municipal Power Agency
effective the 1 st day of October, 2019.
Section 3. On or before ninety (90) days after the effective date hereof, the re-
created West Texas Municipal Power Agency ("Re-created WTMPA") shall complete
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its annual external audit for fiscal year 2018-19 and remit to the City of Lubbock,eighty
five and 211100 percent (85.21%) ("Lubbock Share") of all applicable assets, less any
current liability obligations. Thereafter, the Re-created WTMPA and the City of
Lubbock shall true up the assets or liability obligations as soon as reasonably
practicable, as income and expenses attributable to periods of time the City of Lubbock
was a member of the Agency have been received and disbursed, but in no event to be
later than the later of(i) twenty four(24) months from the effective date hereof; or (ii)
final resolution of Southwest Power Pool, Inc., Docket No. ER16-1341, before the
Federal Energy Regulatory Commission, and any other matter related to Attachment
Z2 of the SPP Tariff wherein WTMPA and/or the City of Lubbock have made
payments, with reservation of rights to seek the return of all or a portion of same (the
"FERC Action"), such that the Re-created WTMPA and the City of Lubbock shall each
be entitled to, and responsible for, their respective share of such income and expenses.
It is expressly stipulated that any funds received or refunded pursuant to the FERC
Action shall be deemed, for all purposes, as an asset attributable to the period of time
the City of Lubbock was a member of the Agency.
Any obligation incuiTed by the West Texas Municipal Power Agency prior to the
effective date of deletion of the City of Lubbock, Texas, which either had not matured
or was reasonably unknown by the Agency and its member public entities shall be an
obligation of the City of Lubbock, Texas for which it agrees to pay the Lubbock Share
of the obligation.
Without limiting the general nature of the matters provided in this Section 3,the interest
of the re-created West Texas Municipal Power Agency in that certain Oklahoma Elk
City II Wind Energy Center Power Purchase Agreement, dated as November 26, 2012,
by and between the Agency and Elk City Wind 1I, LLC, as amended by Amendment
No. 1 of Power Purchase Agreement,dated effective April 24, 2018 (the"PPA"), from
and after the effective date of the assignment to the City of Lubbock, Texas of an
undivided eighty five percent (85%) of the PPA, shall not be considered an obligation
of the City of Lubbock. Except as expressly provided in this Section 3, the City of
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Lubbock shall not be responsible for any expense, cost, obligation, or liability of any
kind accruing after the effective date of hereof.
To the extent the City of Lubbock desires to be a party to any actions currently pending
at the Federal Energy Regulatory Commission in which the Agency is a party, absent
agreement otherwise between the re-created WTMPA and the City of Lubbock, the
City of Lubbock shall be responsible for the Lubbock Share of the expenses related to
such action(s). The Re-created WTMPA shall take any actions necessary to substitute
itself for the Agency, as the applicable party to such pending actions.
Section 4. This governing body, in conjunction with the governing bodies of the
public entities mentioned in the preamble hereof, excluding the City of Lubbock,
Texas, do by this concurrent ordinance adopt Subchapter C-1 of the Act and provide
for the creation of a Municipal Power Agency,without taxing power,and such Agency:
(a) shall be known as the West Texas Municipal Power Agency; and
(b) shall have boundaries which include the territory within the corporate limits of the
Cities of Floydada, Brownfield and Tulia; and
(c) shall be governed by a Board of Directors consisting of six (6) persons appointed
by the governmental body of their respective cities who shall serve by places.
Section 5. The initial term of office of each director and the governing body of the
particular public entity who may appoint such director to fill each place shall be as
follows:
Place Number Initial Term Appointing Public Entity
1 One Year City of Brownfield
2 Two Years City of Brownfield
3 One Year City of Floydada
4 Two Years City of Floydada
5 One Year City of Tulia
6 Two Years City of Tulia
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The initial term of office for the directors appointed by the governing body of this City
shall be calculated from the date of passage of this Ordinance. Successors in office (for
each place) shall be appointed by the governing body of the public entity appointing
the initial director for such place for a term of two years. Vacancies in office in each
place shall be filled for the unexpired term by the governing body of the public entity
which originally filled such position.
PASSED AND APPROVED on First Reading this 10th day of September
2019.
PASSED AND APPROVED on Second and Final Reading this 24th day of
September , 2019.
MAYOR DANIEL M. POPE
City of Lubbock
Attest:
cky Garza, City Secrc
APPROVED AS TO CONTENT:
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David McCalla, Director of Electric Utilities
APPROVED AST RM:
Richard Casner, General Counsel, Lubbock Power& Light
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