HomeMy WebLinkAboutResolution 4093-06-2012A Resolution
NO. 4093 -06 -2012
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, APPROVING RESOLUTION NO. 2007 -12 -332
ADOPTED BY THE DALLAS -FORT WORTH INTERNATIONAL
AIRPORT BOARD ON DECEMBER 6, 2007, WHICH APPROVED
A NEW ELECTRIC UTILITY INFRASTRUCTURE AGREEMENT
WITH ONCOR ELECTRIC DELIVERY COMPANY LLC, OF
DALLAS, TEXAS FOR A TERM THAT EXCEEDS 40 YEARS.
WHEREAS, Section 8.C. of the 1968 Contract and Agreement, as amended, between the City
of Dallas, Texas and the City of Fort Worth, Texas, provides that the Dallas -Fort Worth
International Airport Board may enter into contracts, leases and other arrangements with any person,
association of persons, firms, or public or private entities or corporations for terms not exceeding
forty (40) years, granting the privilege of using or improving the Airport, or any portion thereof or
space therein for commercial purposes and may confer the privilege of supplying goods,
commodities, things, services or facilities at the Airport or of making available services to be
furnished to or by the Board or its agents thereof; and
WHEREAS Section 8.E.(4) of the 1968 Contract and Agreement provides that the Airport
Board shall have the general power to enter into contracts, provided that they shall be submitted to
the Councils of the two cities for lawful provisions for payment if the contract payments are to be
made other than concurrently with the rendition of services or delivery of goods in subsequent years
and not from special funds already authorized or from sums fixed by the 1968 Contract and
Agreement; and
WHEREAS, on December 6, 2007, the Dallas -Fort Worth International Airport Board passed,
approved, and ordered Resolution No. 2007 -12 -332, authorizing a new Agreement between the
Board and Oncor Electric Delivery Company LLC that reestablishes the electric utility infrastructure
operation and maintenance responsibilities and electric utility main extension policies on Airport
property; and
WHEREAS, the term of the Agreement is 15 years, subject to termination upon one year's
notice, unless the Airport Board opts not to purchase the infrastructure system, in which case the
Airport Board is obligated to extend the Agreement indefinitely; and
WHEREAS the Dallas -Fort Worth International Airport Board has requested that the City
Councils of the Cities of Dallas and Fort Worth to approve Resolution No. 2007 -12 -332;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
Resolution No. 4093 -06 -2012
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT:
1. All of the declarations and findings contained in the preamble of this ordinance are made a
part hereof and shall be fully effective as part of the ordained subject matter of this ordinance.
2. The Dallas /Fort Worth International Airport Board is authorized to execute a Contract with
Oncor Electric Delivery Company LLC for a term in excess of 40 years, provided that the Contract
will maintain the right of termination, contingent upon purchase of the infrastructure system as may
be subsequently authorized by the City Council of the City of Fort Worth.
3. That Resolution No. 2007 -12 -332 of the Dallas -Fort Worth International Airport Board, a
duly certified copy of which is attached hereto as Exhibit A and made a part of this ordinance by
reference, is hereby approved conditioned upon similar approvals and authorizations by the City
Council of the City of Dallas.
Adopted this 12`h day of June, 2012.
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DALLAS /FORT WORTH INTERNATIONAL AIRPORT
3200 EAST AIRFIELD DRIVE, P.O. BOX 619428
DEW AIRPORT, TEXAS 75261 -9428
www.dfwairport.com
T 972 973 8888 F 972 973 5751
May 21, 2012
STATE OF TEXAS §
COUNTY OF DALLAS §
COUNTY OF TARRANT §
I, Donna J. Schnell, Board Secretary of the Dallas -Fort Worth International Airport
Board, do hereby certify that the attached is a true and correct copy of
Resolution No. 2007 -12 -332, approved by the Dallas -Fort Worth International
Airport Board of Directors at its Board Meeting held on December 6, 2007.
WITNESS MY HAND AND SEAL OF THE DALLAS -FORT WORTH INTERNATIONAL
AIRPORT BOARD, this the 21' of May 2012.
Donna J. Schnell
Board Secretary
DALLAS FORT WORTH INTERNATIONAL AIRPORT BOARD
OFFICIAL BOARD ACTION /RESOLUTION
Date
Committee
Subject
Resolution #
12/06/2007
Operations
I Agreement for Electric Facilities
2007 -12 -332
Action
I That the Chief Executive Officer or Designee be authorized to execute Contract No. 7003979, an Agreement
for Electric Facilities, between Oncor Electric Delivery Company LLC and the Dallas /Fort Worth International
Airport Board.
Description
• This Agreement will replace an existing Agreement between Board and Oncor Electric Delivery
Company LLC, which went into effect on March 10, 1971, and is set to expire on December 31,
2007, and will establish electric utility infrastructure operation and maintenance responsibilities, and
fine extension policies.
Justification
• This Agreement will reestablish the electric utility infrastructure operation and maintenance
responsibilities and line extension policies utilitized on Board property.
• This Agreement will not establish the Board "s electric commodity rates.
• Electricity distribution and infrastructure related costs will continue to be determined by Oncor"s tariff
rates as approved by the Public Utility Commission of Texas.
D /M/WBE Information
• In accordance with the Board "s M /WBE Program, no goal was set for this Contract due to the nature
of the procurement (Use Agreement).
• Oncor Electric Delivery Company LLC has agreed, however, to provide reports to the Board "s Small
and Emerging Business Department regarding its utilization of minority and women -owned
businesses through its corporate supplier diversity program. Those reports are also submitted to the
Public Utility Commission of Texas. Oncor Electric Delivery Company LLC, additionally, has agreed
to consult with the Small and Emerging Business Department should contracting opportunities arise
that are directly related to its Contract with the Board.
Schedule/Term
• Start Date: January 1, 2008
• Contract Term: 15 years, with one 15 -year extension option
Contract # Agreement # Purchase Order # Action Amount Revised Amount
7003979 $0 $0
For Information contact
Fund Project # External Funding Source Amount
Rusty Hodapp
0102 $o
4 -8470
Robert Ramert
i3-5677
Resolution # 2007 -12 -332
Additional Information
• On March 10, 1971.. the Board entered into an Agreement with Oncor Electric Delivery Company LLC
(formerly Texas Power and Light Company) to install, operate. and maintain the electrical utility
infrastructure on Airport property. This Agreement is set to expire on December 31 , 2007. The
agreement does not govern the Airport"s electric rates: it establishes operation and maintenance
responsibilities, and line extension policies.
• On May 20, 2005, the Board retained Carter & Burgess, Inc. (C &B) to assist in evaluating the
Board "s options relative to the expiration of the Oncor Infrastructure Agreement. The Board "s options
included purchasing the infrastructure and severing the relationship with Oncor. or negotiating a new
agreement and maintaining an ongoing relationship.
• After reviewing the economic, regulatory, and operational aspects associated with these options, on
September 22. 2005. C &B submitted their findings to Board Staff and recommended negotiating a
new agreement with Oncor. Staff agreed with C &B "s findings and recommendation. and on October
4, 2005, Staff briefed the Operations Committee of the Airport Board.
• This Board Action will authorize the execution of a 15 -year Agreement with Oncor. As in the past,
Oncor will be responsible for the operation and maintenance of the electric transmission and
distribution infrastructure, and the Board will install and maintain all civil facilities associated with said
infrastructure. The cost of all installations. removal, and /or modifications of said infrastructure will be
determined by Oncor's Public Utility Commission approved tariffs.
Additional Attachments: N
BE IT RESOLVED BY THE DALLAS -FORT WORTH INTERNATIONAL AIRPORT BOARD
That the Chief Executive Officer or Designee be authorized to execute Contract No. 7003979, an Agreement
for Electric Facilities, between Oncor Electric Delivery Company LLC and the Dallas/Fort Worth International
Airport Board.
Approved as to Form by
Gary Keane
General Counsel
Nov 28, 2007 1:53 pm
Approved as to Funding by
Max Underwood
Vice President
Finance
Nov 29, 2007 7:54 am
SIGNATURE REQUIRED FOR APPROVAL
Approved b
` J
Department Head
Energy & Transportation Mgmt
Nov 28, 2007 10:52 am
Approved as to M/WBE by
Don O'Bannon
Vice President
Small & Emerging Business
Nov 28, 2007 2:53 pm
Chief Executive Officer
Dec 10. 2007 9:02 am
Date
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/1212012 - Resolution No. 4093 -06 -2012
DATE: Tuesday, June 12, 2012 REFERENCE NO.: G -17612
LOG NAME: 12DFW ONCOR
SUBJECT:
Authorize Execution of an Electric Utility Infrastructure Agreement with Oncor Electric Delivery Company,
LLC, and Adopt Resolution Approving Dallas /Fort Worth International Airport Board Resolution No. 2007-
12 -332 Which Approved an Electric Utility Infrastructure Agreement with Oncor Electric Delivery Company
for a Term Which Exceeds Forty Years Unless the Dallas /Fort Worth International Airport Board Purchases
the Electric Utility Infrastructure System (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an Electric Utility Infrastructure
Agreement with Oncor Electric Delivery Company, LLC, and adopt a Resolution approving Dallas /Fort
Worth International Airport Board Resolution No. 2007 -12 -332 which approved an Electric Utility
Infrastructure Agreement with Oncor Delivery Company for a term which exceeds forty years unless the
Dallas /Fort Worth International Airport Board purchases the electric utility infrastructure system.
DISCUSSION-
Section 8.C. of the 1968 Contract and Agreement, as amended, between the City of Dallas, Texas, and
the City of Fort Worth, Texas, provides that the Dallas /Fort Worth International Airport Board may enter
into contracts, leases and other arrangements with any person, association of persons, firms or public or
private entities or corporations for terms- not exceeding 40 years.
This action by the Fort Worth City Council authorizes the Dallas /Fort Worth International Airport Board to
execute a contract with Oncor for a term in excess of 40 years provided that the contract will maintain the
right of termination, contingent upon purchase of the infrastructure system, as may be subsequently
authorized by the City Council of the City of Fort Worth.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund /Account /Centers
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund /Account/Centers
Fernando Costa (6122)
Sarah Fullenwider (8006)
Charlene Sanders (7611)
Logname: 12DFW ONCOR Page 1 of 1
y.
DALLAS /FORT WORTH INTERNATIONAL AIRPORT
3200 EAST AIRFIELD DRIVE, P.O. BOX 619428
DFW AIRPORT, TEXAS 75261 -9428
www.dfwairportxom
T 972 973 8888 F 972 973 5751
May 21, 2012
STATE OF TEXAS §
COUNTY OF DALLAS §
COUNTY OF TARRANT §
I, Donna J. Schnell, Board Secretary of the Dallas -Fort Worth International Airport
Board, do hereby certify that the attached is a true and correct copy of
Resolution No. 2007 -12 -332, approved by the Dallas -Fort Worth International
Airport Board of Directors at its Board Meeting held on December 6, 2007.
WITNESS MY HAND AND SEAL OF THE DALLAS -FORT WORTH INTERNATIONAL
AIRPORT BOARD, this the 21' of May 2012.
Donna J. Schnell
Board Secretary
Resolution # 2007 -12 -332
Additional Information
• On March 10, 1971, the Board entered into an Agreement with Oncor Electric Delivery Company LLC
(formerly Texas Power and Light Company) to install, operate, and maintain the electrical utility
infrastructure on Airport property. This Agreement is set to expire on December 31, 2007. The
agreement does not govern the Airport "s electric rates; it establishes operation and maintenance
responsibilities, and fine extension policies.
• On May 20, 2005, the Board retained Carter & Burgess, Inc. (C &B) to assist in evaluating the
Boards options relative to the expiration of the Oncor infrastructure Agreement. The Board's options
included purchasing the infrastructure and severing the relationship with Oncor, or negotiating a new
agreement and maintaining an ongoing relationship.
• After reviewing the economic, regulatory, and operational aspects associated with these options, on
September 22, 2005, C &B submitted their findings to Board Staff and recommended negotiating a
new agreement with Oncor. Staff agreed with C &B "s findings and recommendation, and on October
4, 2005, Staff briefed the Operations Committee of the Airport Board.
• This Board Action will authorize the execution of a 15 -year Agreement with Oncor. As in the past,
Oncor will be responsible for the operation and maintenance of the electric transmission and
distribution infrastructure, and the Board will install and maintain all civil facilities associated with said
infrastructure. The cost of all installations, removal, and /or modifications of said infrastructure will be
determined by Oncor 's Public Utility Commission approved tariffs.
Additional Attachments: N
BE IT RESOLVED BY THE DALLAS -FORT WORTH INTERNATIONAL AIRPORT BOARD
That the Chief Executive Officer or Designee be authorized to execute Contract No. 7003979, an Agreement
for Electric Facilities, between Oncor Electric Delivery Company LLC and the Dallas /Fort Worth International
Airport Board.
Approved as to Form by
Gary Keane
General Counsel
Nov 28, 2007 1:53 pm
Approved as to Funding by
Max Underwood
Vice President
Finance
Nov 29, 2007 7:54 am
SIGNATURE REQUIRED FOR APPROVAL
Approved by
. C
Department Head
Energy & Transportation Mgmt
Nov 28, 2007 10:52 am
Approved as to M/WBE by
... -:�_
Don O'Bannon
Vice President
Small & Emerging Business
Nov 28, 2007 2:53 pm
7.t._
Dec 10 2007 9:02 am
Chief Executive Officer
Date