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HomeMy WebLinkAbout1997-206J \WPD0CS\0RD\FRANCHIS ORD ORDINANCE NO� AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A FRANCHISE AGREEMENT BETWEEN THE CITY OF CORINTH, TEXAS AND THE CITY OF DENTON, TEXAS, MUNICIPAL ELECTRIC UTILITY FOR PAYMENT OF A FRANCHISE FEE IN CONNECTION WITH THE FURNISHING OF ELECTRIC SERVICE TO CUSTOMERS IN THE CITY OF CORINTH, TEXAS, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I. That the City Manager is hereby authorized to execute, on behalf of the City, a Franchise Agreement Between The City of Corinth, Texas and The City of Denton, Texas Municipal Electric Utility for the payment of a franchise fee in connection with the furnishing of electric service by the City of Denton Municipal Electric Utility to customers in the City of Corinth, Texas, a copy of which Agreement is attached hereto and incorporat- ed by reference herein SECTION II That the expenditure of funds as set forth in the Agreement is hereby authorized SECTION III. That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of 1997 JAr MILLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY THE STATE OF TEXAS COUNTY OF DENTON 5 FRANCHISE AGREEMENT BETWEEN THE CITY OF CORINTH, TEXAS AND THE CITY OF DENTON, TEXAS MUNICIPAL ELECTRIC UTILITY THIS AGREEMENT, made and entered into by and between the City of Corinth, Texas, hereinafter called "CITY", and The City of Denton, Texas, Municipal Electric Utility, hereinafter called "DMEU" WITNESSETH WHEREAS, DMEU is operating an electric distribution system, including poles, wires, transformers, meters, and other appurte- nances within the City of Corinth, Texas, and no compensation has been paid, or is provided to be paid, to CITY for the use and occupancy of the streets, alleys, highways, easements, parks, and other public places within said CITY, or other charges in connec- tion with such use, and WHEREAS, it is the desire of the CITY and DMEU to agree upon the rental or compensation for such use and occupancy and the parties hereto have agreed upon an amount to be paid annually by DMEU1t0 CITY for such purpose, NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and the mutual benefits to be derived therefrom, the parties hereto agree as follows 1 That DMEU, its successors or assigns, shall pay annually four percent (4k) of its gross revenues from the sale of electric power and energy at retail within the corporate limits of the CITY as full payment for the right and privilege of using and occupying the present and future streets, alleys, highways, easements, parks, and other public places within the CITY The first payment shall be due on August 1, 1998 and subsequent payments shall be made on or before August 1 of each year thereafter Each payment shall be based on the gross receipts from the retail sale of electricity within the corporate limits of CITY during the twelve (12) month period ending May 30 next preceding the payment and shall be pay- ment for the aforesaid right and privilege during the twelve (12) month period beginning with August 1 of the year in which the pay- ment is made The first payment is based on the revenue collected by DMEU during the twelve month period beginning June 1, 1997 and ending May 31, 1998 This payment covers the street rental agree- ment period of August 1, 1997 through July 31, 1998, with subse- quent payments to be rendered as previously stated DMEU shall provide a complete report in support of its calculations with each such payment and, upon reasonable written request, shall provide and allow inspection of all necessary books and records of DMEU 2 CITY agrees to accept such payment as full compensation to be paid by DMEU for the privilege of using and occupying the streets, alleys, highways, easements, parks, and other public places within the present and future territorial limits of CITY, while this agreement is in effect, in lieu of and shall be accepted as payment for all of DMEU's obligations to pay occupation taxes, assessments, municipal charges, fees, rentals, pole rentals, wire taxes, license and inspection fees or charges, administrative and processing fees, utility easement taxes, franchise taxes, street taxes, street or alley rentals and all other charges, levies, fees, rentals and taxes of every kind, except ad valorem taxes, sales taxes, and special taxes and assessments for public improvements 3 That DMEU shall, to the extent permitted by law, indemnify and save whole and harmless the CITY and all of its officers, agents, and employees from any and all claims for injury or damage to persons or property occasioned by, or arising out of the construction, maintenance, operation, or repair of the generation, transmission, or distribution system, or by the conduct of business in the CITY Provided, however, nothing herein shall be construed to indemnify the CITY against the CITY's own negligence or fault It is understood that it is not the intention of the parties hereto to create liability for the benefit of third parties, but that this agreement shall be solely for the benefit of the parties hereto 4 That all poles to be placed shall be of sound material and reasonably straight, and shall be so set that they will interfere as little as practicable with the ordinary travel on alleys, streets or sidewalks or with the flow of water to any gutter or drain. The location and route of all poles, stubs, guys, anchors, conduits and cables to be placed and constructed by the DMEU in the construction and maintenance of its electric utility distribution system in the CITY, shall comply with all pertinent requirements of the National Electrical Safety Code and all rules and guidelines that have been properly promulgated by the CITY which are not inconsistent with this agreement, and as may be authorized by State or Federal law 5 That in any future construction, in new developments, lateral and service distribution lines and wires shall be placed or constructed underground in all areas designated in advance of construction by the CITY for all electric utilities in the plat approval process or by zoning ordinances In such designated areas, distribution feeder lines may be overhead and transformers and similar equipment may be pad -mounted The City Council of Corinth or the City Manager thereof, acting on their behalf, may upon petition by DMEU, waive the requirement of underground installation if good cause is shown for such exemption As used in this section Page 2 "Feeder lines, shall mean those electric lines that emanate from substations to distribute power throughout an area "Lateral lines" shall mean those electric lines that emanate from a feeder line and are used to distribute power to smaller areas of electric consumers. These electric lines are normally connected to a feeder line through a sectionalizing device such as a fuse or disconnect switch "Service lines" shall mean those electric lines which, through a transformer, connect a lateral line to a customer's service entrance 6 DMEU shall, on or before the 15th day of each month, report to the City Engineer or City Secretary of Corinth, Texas each opening or disturbance of the paved surface of any street, alley, highway, public right-of-way or public places by DMEU during the preceding month The surface of any street, alley, highway or pub- lic place within the CITY disturbed by the DMEU in building, con- structing, renewing or maintaining its electric utility distribu- tion system shall be restored within a reasonable time after the completion of the work to the condition existing prior to such work and such repair shall be maintained because of defective workman- ship by DMEU for one (1) year from the date the surface of said street, alley, highway or public place is broken for such construc- tion or maintenance after which time such maintenance shall become the responsibility of the CITY DMEU shall be responsible for promptly restoring, to as good condition as before the commencement of the DMEU's work, all streets, alleys, sidewalks and other paved areas covered by this agreement No such street, alley, highway, or public place shall be encumbered for a longer period than shall be reasonably necessary to execute work It is understood that it is not the intention of the parties hereto to create any liability for the benefit of third parties, but that this agreement shall be solely for the benefit of the parties hereto 7 Nothing herein shall enlarge, diminish, amend, affect or otherwise prejudice any certificate of convenience and necessity granted to either CITY or DMEU 8 DMEU's property and operations within the corporate limits of CITY shall be subject to such reasonable rules and regulations of CITY as may be authorized by applicable law for the protection of the general public DMEU shall comply with all subdivision rules and regulations of CITY generally in effect to the extent that same are valid and authorized by applicable state or federal law Charges for installation or maintenance of street lighting, including extension costs charged to developers, shall be in accordance with DMEU's tariffs Page 3 9 This Agreement supersedes and cancels any and all prior agreements between CITY and DMEU relating to the matters herein set forth, and is the entire agreement of the parties 10 This Agreement shall terminate on May 31, 2012 11 This Agreement is executed in duplicate originals IN WITNESS WHEREOF, the City of Corinth, Texas has caused this Agreement to be executed by its duly authorized Mayor, and the City of Denton, Texas Municipal Electric Utility has caused this Agreement to be execute uly authorized City Manager on this the Zff by its d day of 1997 "DMEU" CITY OF DENTON, TEXAS MUNICIPAL ELECTRIC UTILITY BY TED gENAVIDES, CITY MANAGER ATTEST JENNIFER WALTERS, CITY SECRETARY BY APP4 D AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY "np� "CITY" ,,,;•� OF COA/��y''' CITY OF CORINTH, TEXAS r Cj BY ; 14.64 SHIRLEY A --ELLS B RG, MAYOR ATTEST %,_ ••.. BY A \FRANCHIS K Page 4 ORDINANCE NO 97-08-07-17 AN ORDINANCE OF THE CITY OF CORINTH, TEXAS, GRANTING THE CITY OF DENTON, TEXAS, MUNICIPAL ELECTRIC UTILITY (DMEU) , ITS SUCCESSORS AND ASSIGNS, A FRANCHISE AGREEMENT TO FURNISH ELECTRIC SERVICE TO AUTHORIZED CUSTOMERS IN THE CITY OF CORINTH, TEXAS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORINTH, TEXAS - Section Section H That the franchise fee as set forth in the Agreement is hereby approved Section M That this ordinance shall become effective immediately upon its passage, and approval PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CORINTH, TEXAS THIS Seventh DAY OF AUGUST, 1997 ,•7 -0 * s#� Shirley Spplletberg Mayor ATTEST: e'o� Connie Hell City Secretary