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HomeMy WebLinkAbout1999-353ORDINANCE NO AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR HOLDOVER OF EXISTING ELECTRIC FRANCHISE AGREEMENT AND ORDINANCE BY AND BETWEEN THE CITY OF DENTON AND TXU ELECTRIC, AND PROVIDING AN EFFECTIVE DATE WHEREAS, TXU Electric ("TXU") is currently a franchisee of the City, providing electric service within a part of the City of Denton, whose current francluse agreement and ordinance is due to expire on September 30, 1999, TXU and the City are in the process of negotiations which they expect will, in the near future, lead to the adoption by the City Council of a new right-of-way regulatory ordinance and the granting of a new franchise to TXU, and TXU and the City mutually desire that the existing franchise agreement and ordinance in place between them not expire, and they also desire to maintain the status quo, wherein TXU and the City will continue performing their respective obligations under the existing franchise agreement and ordinance without lapse or interruption, and WHEREAS, the City Council deems it in the public interest to enter into an agreement with TXU providing that the terms of the existing electric franchise agreement and ordinance will be extended until November 1, 1999, NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is hereby authorized to enter into an Agreement for Holdover of Existing Electric Franchise Agreement and Ordinance (the "Agreement"), substantially in the form of the letter agreement attached to and made a part of this ordinance for all purposes, for the purpose of extending the terms of the existing electric franchise agreement and ordinance by and between the City and TXU SECTION 2 That the City Council has found and determined that the meeting at which this ordinance is considered is open to the public and that notice thereof was given in accordance with provisions of the Texas open meetings law, Tex Gov't Code ch 551, as amended, and that a quorum of the City Council was present SECTION 3 and approval PASSED AND APPROVED this the cR 5 day of , 1999 That this ordinance shall become effective immediately upon its passage JAC LER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY By APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY CITY OF DENTON, TEXAS September 21, 1999 Mr Steve Taylor District Manager TXU Electric CITYATTORNEY'S OFFICE 215E MCKINNEYSTREET DENTON, TEXAS 76201 (940) 349-8333 FAX (940) 382-7923 Re Agreement for Holdover of Existing Electric Franchise Agreement and Ordinance Dear Mr Taylor Thank you for your comments and participation in the discussion of the TXU Electric franchise and the Electric Service Ordinance conducted by the City Council on September 14, 1999 As the Council directed at that time, City Staff will be working on revisions to the Electric Service Ordinance and the accompanying franchises for TXU Electric and CoSery Electric in order to bring revised documents to the Council at its first meeting in October The City Staff will also be contacting you to receive your input into these documents As you are aware, TXU Electric's current franchise from the City expires on September 30, 1999 It is anticipated that the City will, within a few weeks, adopt a new regulatory ordinance governing the use and occupancy of the rights -of -way by electric service providers under which franchises will be granted Maintenance of the status quo with regard to TXU Electric's existing franchise will enable TXU Electric and the City to concentrate on the new ordinance and franchise in a time -sensitive manner Your representations to the Council on September 14, 1999, were to the effect that a continuation of the status quo would be acceptable to TXU Electric Therefore, by your signature below, you are agreeing that you are a duly authorized representative of TXU Electric and that TXU Electric agrees to a continuation of the status quo for one month until November 1, 1999, which includes, without limitation, the obligation of TXU Electric to pay a 4% franchise fee and permits TXU Electric the right to continue to lawfully operate in the City, without interruption, pending adoption by the Council of a new right-of-way regulatory ordinance and the granting of a new franchise to TXU Electric To reiterate, during this interim period, TXU Electric may continue to use and occupy the rights -of -way in the City under the terms of the existing franchise, and will continue to make franchise fee payments to the City, as required in the existing franchise "Dedicated to Quabty Service" Duplicate originals of this Agreement are being provided for your signature Please sign and return one original and keep the other original for your records Sincerely, is ael Je City M age City of Denton, Texas ATTEST JENNIFER WALTERS, CITY SECRETARY By 9t4w�L APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY By =WO4-- AGREED TXU ELECTRIC By S = Steve Taylor, Distf ct Manager Dated September ' 1 , 1999 S \Our Documents\Correspondence\Letters\99\TXU Electric Finch Holdover Lttr doe