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File #: ID 14-0534    Version: 1 Name:
Type: Ordinance
File created: 8/29/2014 In control: City Council
On agenda: 9/16/2014 Final action:
Title: Consider adoption of an ordinance authorizing the City Manager or his designee to expend funds to reimburse Texas Municipal Power Agency ("TMPA") for costs TMPA has already incurred related to the ARCO Substation reconstruction project now assigned to the City. The total amount of reimbursement is not to exceed $1,020,000.
Attachments: 1. Exhibit 1 - Ordinance, 2. Exhibit 2 - TMPA invoices and backup
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Agenda Information Sheet

DEPARTMENT: Denton Municipal Electric (DME)

ACM: Howard Martin, 349-8232

DATE: September 16, 2014

SUBJECT
Title
Consider adoption of an ordinance authorizing the City Manager or his designee to expend funds to reimburse Texas Municipal Power Agency ("TMPA") for costs TMPA has already incurred related to the ARCO Substation reconstruction project now assigned to the City. The total amount of reimbursement is not to exceed $1,020,000.
Body

BACKGROUND
The existing Arco Substation is a TMPA transmission facility. Oncor is in the process of constructing a second 138kV transmission line into the station from the east. The station configuration does not have the ability to be reconfigured and the site does not have the space to be expanded to accept the new transmission line. The station bus and equipment are not of adequate capacity to meet the projected needs of the future. The only solution is to reconstruct the station on an adjacent site. TMPA initiated design of the new station, procurement of a site immediately north of the existing station, and purchased eleven circuit breakers for the station.
Subsequent to TMPA's start of the project, a decision was made that Denton Municipal Electric ("DME") take over the project and acquire the site, complete the engineering and construction, and own the new station. Because of the possibility that the project would transition to DME ownership, a project for reconstruction of the Arco Substation was included in DME's CIP for the current year. Since DME will own the new station, it is appropriate that DME reimburse TMPA for the expenditures made on the project and take possession of the circuit breakers purchased. The circuit breakers are new and all but one has been delivered to Denton.
This reimbursement is strictly for TMPA's cost, and TMPA is making no financial gain from this reimbursement.

OPTIONS
1. Adopt an ordinance authorizing reimbursement of TMPA.
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