HomeMy WebLinkAbout2001-405FILE REFERENCE FORM 2001-405
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CIMI
Amended by Ordinance No. 2002-289
Late
09/03/02
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ORDINANCE NO 2001- ` 05l
AN ORDINANCE GRANTING TO TXU ELECTRIC COMPANY DOING BUSINESS AS
TXU ELECTRIC, A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING,
MAINTAINING, AND USING AN ELECTRIC UTILITY SYSTEM IN THE CITY OF
DENTON, REGULATING THE CONSTRUCTION WORK DONE BY THE GRANTEE IN
THE CITY, PRESCRIBING THE DUTIES, RESPONSIBILITIES, AND RULE -MAKING
AUTHORITY OF THE CITY MANAGER AND THE CITY WITH RESPECT TO
ADMINISTRATION OF THIS FRANCHISE, PROVIDING FOR ENFORCEMENT OF THE
FRANCHISE, PRESCRIBING THE COMPENSATION TO BE PAID THE CITY BY THE
GRANTEE FOR THE FRANCHISE PRIVILEGE, SETTING FORTH THE TERM OF THE
FRANCHISE, PROVIDING FOR A SEVERABILITY PROVISION, PROVIDING FOR
ACCEPTANCE OF THE FRANCHISE BY GRANTEE, PROVIDING FOR RETROACTIVE
EFFECT, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, TXU Electric Company, doing business as TXU Electric, has been using
and occupying Public Rights -of -Way in the City of Denton ("City") for over a year, including all
of calendar year 2000, without a franchise therefor from the City, and
WHEREAS, from 1987 until November 1999 TXU-Electric, formerly known as Texas
Utilities Electric Company operated under a franchise granted by the City under Ordinance 87-
162, as amended, and
WHEREAS, TXU Electric and the City are involved in litigation which includes a claim
by the City that TXU Electric is illegally operating on City rights -of -way and other public
property without a franchise or other grant of authority by the City Council of the City, which
allegation is denied by TXU Electric, and
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WHEREAS, the parties wish to enter into a new franchise agreement, and
WHEREAS, the City of Denton has adopted Ordinance No 99-373, which was amended
and superseded by Ordinance No 2000-041 and further amended and superseded by Ordinance
No 2001,406, amending the City of Denton Code of Ordinances to provide uniform regulations
to govern the use and occupancy of Public Rights -of -Way and other City property by Grantees of
Electric Utility Service in the City, such provisions being codified as Sections 26-240, et seq ,
City Code, and including the requirement that such Grantees obtain a franchise from the City for
such use and occupancy, and
WHEREAS, Sections 26-240, et seq , of the City Code apply to TXU Electric, and its
provision of Electric Utility Service in the City, except to the extent that those provisions are
changed by this Franchise, and require TXU Electric to obtain a franchise from the City, NOW,
THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 DEFINITIONS
As used in this ordinance, capitalized terms shall have the defined meanings set forth in
Ordinance No 2001-406, codified as Sections 26-240, et seq , City of Denton Code of
Ordinances, and such definitions are hereby adopted as is set forth fully herein with the
following exceptions only The term "Gross Revenues" shall include all revenues which are
found by a final Judgment of a Court or through a final settlement of the parties in the litigation
styled City of Denton, Texas, et al vs TXU Electric Company, et al currently pending in the
1341h Judicial District Court of Dallas County, Texas ("TXU Litigation") to be included within
this term under the compensation provision set forth in Section 1 of the previous franchise as
amended by Ordinance No 93-137 and as more fully set forth in Section 5 hereof The tern
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"Effective Date" is the date that the Franchise granted herein becomes effective, which shall be
November 15, 2001 The term "Acceptance Date" is the date that Grantee signs and dates the
Acceptance attached to this Ordinance
SECTION 2 FRANCHISE GRANTED
(a) There is hereby GRANTED to TXU Electric (hereinafter called "Grantee"), for
the term set forth in Section 14 of this Ordinance, a Franchise to use and occupy the Public
Rights -of -Way and other public property in order to construct, erect, own, suspend, install,
extend, renew, repair, maintain, operate, and conduct in the City of Denton, Texas, (hereinafter
referred to as "City"), a plant or plants and poles, wires, pipelines, cables, underground conduits,
manholes, fiber optic cable for its own use, and all other facilities and equipment needed and
necessary for the maintenance and operation of an Electric Utility System
(b) This Franchise does not grant to Grantee the right, privilege, or authority to
occupy and use the Public Rights -of -Way or other City property to engage in any other business
within the City other than the provision of Electric Utility Service, as set forth in this Franchise
Provided, however, that only the additional following related electric business that Grantee is
providing within the City as of the Effective Date of this Franchise shall be authorized I
allowing other entities to attach wires, cables, and other materials to Grantee's poles ("pole
contacts") 2 attaching cellular telephone facilities to Grantee's equipment and facilities Any
additional business or services to be performed by Grantee in the City, other than Electric Utility
Services, shall not be included within this Franchise, but instead, shall be the subject of a
separate agreement or by an appropriate amendment to this Franchise
(c) All of Grantee's activities and occupation of the Public Rights -of -Way in the City
shall be governed by the provisions of Sections 26-240, et seq , City Code, as such provisions
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may be amended from time to time in the sole discretion of the City except as changed and
amendedby this Franchise
(d) Grantee and City agree that Ordinance No 2001-406, codified as Sections 26-
240, et seq , City Code, and this Franchise together constitute one comprehensive franchise
agreement/ordinance provided, however, that the terms and conditions of this Franchise shall
govern and control over any conflicting terms of City Code Sections 26-240 et seq as they
currently exist or may be amended in the future
SECTION 3 ADMINISTRATION OF FRANCHISE BY CITY
(a) The City Manager is the principal City officer responsible for the administration
of this Franchise, and shall generally oversee and review the operations of Grantee under this
Franchise
(b) The City may delegate to the City Manager the exercise of any of the powers
conferred upon the City by its Charter, under its Code of Ordinances, or by regulation or rule, or
by law, relating to the supervision and regulation of Grantee in the exercise of the rights and
privileges herein conferred to Grantee The City Manager shall have the authority to make and
publish, after written notice to those affected and after a hearing, such rules and regulations as
are necessary to carry out the duties and powers conferred upon the City, acting by and through
its City Manager, by the Public Utility Regulatory Act, as amended, and otherwise
(c) It shall be the right and duty of the City Manager and the governing body of the
City at all times to keep fully informed as to all matters in connection with, or affecting the
construction, reconstruction, maintenance, operation, and repair of Grantee's facilities located
within City's Public Rights -of -Way and other City property as well as its accounting methods
and procedures in connection therewith, the conduct of the Grantees' business in the City, and
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the Electric Utility Service being provided by Grantee in the City to the extent reasonably
necessary to administer this franchise and to exercise its regulatory authority over Grantee
SECTION 4 RECORDS REPORTS AND INSPECTIONS
(a) The Grantee shall maintain its books and records as prescribed in Section 26-249,
City Code
(b) Grantee, at Grantee's sole cost and expense and upon request by City, will
promptly provide copies of financial and operating reports filed with the Public Utility
Commission of Texas, the Federal Energy Regulatory Commission, and the Securities and
Exchange Commission, or their successor agencies, in no event later than fifteen (15) days after
the receipt of a request therefor from the City
(c) Grantee shall keep the City fully informed as to all matters in connection with or
affecting the construction, reconstruction, removal, maintenance, operation, or repair of
Grantee's facilities within the City's Public Rights -of -Way and other City property, including,
without limitation, all accounting methods and procedures used by Grantee in determining the
franchise fee amounts to be paid the City
(d) Grantee shall provide the City, upon request, a current chain -of -command
organizational chart of Grantee showing all of its officers, managers and supervisors, together
with their respective titles, addresses and telephone numbers, who have the ultimate
responsibility for managing, operating, and maintaining Grantee's Electric Utility System in the
City
(e) The City Manager, or his designee, shall have the right, at reasonable times, to
inspect the plant, equipment, and other property of the Grantee located within the City's Public
Rights -of -Way and other City property, and, for the sole purposes of the City's review of
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franchise fee payments, the administration of this franchise, the exercise of City's regulatory
authority over Grantee, and the types and location of Grantee's facilities in the City's Public
Rights-ofLWay and other City property, to examine, audit, and obtain copies of the papers,
books, accounts, documents, and other business records of the Grantee and its affiliates,
consistent with state law and in accordance with the provisions of Section 26-249, City Code
(f) The City shall retain all of the investigative powers and other rights provided to
the City by its Charter and by state law
SECTION 5 COMPENSATION TO BE PAID TO THE CITY
(a) Grantee shall pay the City an annual Franchise Fee as set forth in Section 26-242,
City Code except the following shall control and govern over subsection 26-242(a) "Until
December 31, 2001 Grantee, its successors or assigns, shall pay as compensation for the rights
and privileges conferred by this Franchise, four percent (4%) of its gross revenues from the sale
of electric power and energy within the corporate limits of the City, as gross revenues are
defined in Section 1 of this Franchise Beginning January 1, 2002 the compensation to be paid
the City shall be determined by the remaining sections of section 26-242 of the City Code,
especially subsection 26-242(d) and in accordance with this Section 5 These payments shall be
in lieu of, and shall be accepted as payment for all of Grantee's obligation to pay other charges
as defined in subsection 26-242(b) and 26-244(e) of the City Code, save and except regulatory
expenses in excess of $25,000 under Section 33 023, Public Utility Regulatory Act of Texas
("PURA" Tex Util Code 33 023) or any successor law and the other excepted charges set forth
in subsection 26-242(b) of the City Code
(b) The first payment hereunder shall be due and payable on or before November 15,
2001, for the period October 1, 2001 through December 31, 2001 based on Gross Revenues
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The second payment hereunder shall be due and payable on or before May 15, 2002, for the
period January 1, 2002 through March 31, 2002 This payment and all subsequent payments
shall be based on the kilowatt hour charge in accordance with Section 5(a) hereof and Section
26-242 of the City Code The third payment shall be due and payable on or before August 15,
2002, for the three-month period ended June 30, 2002 Subsequent payments shall be due and
payable quarterly thereafter on or before the fifteenth day of the second month following the end
of the three-month period upon which said payment is based Grantee shall furnish to City at the
time each payment of franchise fee is made to City hereunder, a sufficiently detailed financial
statement showing how the Gross Revenues amount was arrived at and how the amount paid to
the City was determined, for such quarter After Grantee implements customer choice, the
information provided to the City shall indicate the number of kilowatt hours of electricity
delivered by the Grantee in the City
(c) If Grantee has not already done so within ninety (90) days after the Acceptance
Date of this Franchise, Grantee shall provide information to the City
(1) documenting the total number of kilowatt hours of electricity
delivered by Grantee in calendar year 1998 to all of Grantee's
retail customers whose consuming facilities' points of delivery
were located within the City's boundaries, and
(n) documenting Grantee's Gross Revenues in calendar year 1998
derived from the provision of Electric Utility Service within the
City's boundaries
(d) By November 15, 2001, Grantee shall compute the franchise fee that Grantee
would have paid to the City in calendar year 1998 at the rate of 4% of Grantee's Gross Revenues
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for 1998, as determined in paragraph (c) above, calculate the amount of the franchise fee set
forth in number of dollars per kilowatt hour, and shall notify the City of the Grantee's
computation and shall provide all documents showing all gross revenues received and earned in
the City for calendar year 1998 including all work papers in sufficient detail to permit an
accurate replication of the results For the purpose of this Franchise "work papers" shall mean
all documents and records utilized by Grantee of the procedures followed, the tests performed,
the information obtained and the conclusions reached to compile and calculate the gross
revenues received and earned in the City for calendar year 1998 and the calculation of the
franchise fee set forth in number of dollars per kilowatt hours which will include any work
programs, analyses, memorandum, abstracts of Grantee's documents and schedules or
commentaries prepared City shall have 60 days to review such computation to determine
whether it has been made in accordance with the provisions of §33 008, PURA If City disagrees
with the i calculation, then City and Grantee will work together in good faith to compute the
franchise fee in accordance with the provisions of §33 008, PURA If the parties reach
agreement the City and Grantee agree that they will use the agreed amount to calculate Grantee's
franchise fee per kilowatt hour, in accordance with §33 008, PURA By January 15, 2002, the
City shall notify Grantee of the amount of the franchise fee set forth in number of dollars per
kilowatt hour By making and accepting this calculation, both City and Grantee agree that
neither party is hereby waiving any claims, causes of action, or defenses that they are asserting in
the TXU Litigation The amount of the franchise fee that Grantee was required to pay the City in
1998, and the amount of the number of dollars per kilowatt hour shall be determined by a final
settlement or Judgment of the court in this litigation, and additional franchise fees, if any, that
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may be owed to the City shall be paid in accordance with that final settlement or judgment of the
court
(e) Grantee shall pay the kilowatt hour -based franchise fee instead of the franchise
fee based upon Grantee's Gross Revenues, commencing with service rendered by Grantee on and
after January 1, 2002, or commencing with service rendered by Grantee on and after the first day
of the first month following the effective date of Grantee's implementation of customer choice,
whichever is later
SSECTION 6 SPECIAL PROVISIONS
The following special provision of this Franchise shall control and govern over the
conflicting provisions of Section 26-247 of the City Code, as it currently exists or may be
amended in the future
(a) Except for emergencies, Grantee shall advise the City at least thirty (30) days
prior to any major construction Major construction shall be defined as installing, maintaining,
constructing, relocating or replacing any of Grantees plants, poles, pipeline wires, cables,
underground conduits, manholes, fiber optic cable or other facilities (1) when such construction
will disrupt traffic flow, (2) conflicts, or interferes with any proposed street or thoroughfare
expansion, or (3) that conflicts, interferes with or is in close proximity to existing City facilities
including water, sanitary sewer, storm drains, street lights, traffic signals and other electric
conduit Grantee shall provide the initial work plans and drawings for the proposed construction
In addition, Grantee shall assess and report on the impact of its proposed construction on the City
environment Such plans and reports may be reviewed by the City to ensure that, among other
items 1) aesthetic and good planning principles have been given due consideration, 2) adverse
impact on the environment has been minimized, and 3) that all applicable laws including
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building and zoning codes and air and water pollution regulations are complied with Changes
requested by the City shall be incorporated into Grantee's construction Within twelve months
of the Adoption Date of this Franchise, Grantee shall use its best efforts to comply with 26-
247(a) of the City Code Grantee may be given up to an additional twelve months to comply
with this section if it can demonstrate to the City through its City Manager that due to cost,
technical difficulties or incompatibility between the City's and Grantee's GIS systems it needs
more time to produce a current map of its facilities in a digital format compatible with the City's
Geographic Information System ("GIS") [26-247]
SECTION 7 FRANCHISE AND OTHER VIOLATIONS
Upon evidence being received by the governing body of the City that a violation of this
Franchise Ordinance, or a City Charter provision, or an ordinance of the City lawfully regulating
Grantee in the furnishing of service hereunder is occurring, or has occurred, it shall at once cause
an investigation to be made by the City Manager or his designee Notice, penalties, and
procedures for ensuring compliance with this Franchise shall be as provided in Sections 26-240,
et seq , City Code
SECTION 8 NOTICES
(a) All notices, including communications and statements that are required or
permitted under the terms of this Franchise, shall be in writing Service of a notice shall be
accomplished by hand -delivery, by registered or certified marl, return receipt requested (postage
prepaid), or by reputable overnight delivery service All notices shall be effective upon the
receipt of notice by the intended recipient
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(b) All notices shall be sent to the City and Grantee at the following addresses
CITY OF DENTON, TEXAS
City Manager
City of Denton
215 E McKinney
Denton, Texas 76201
TXU ELECTRIC COMPANY
Town Manager
100 W Mulberry
Denton, Texas 76201
(c) The City and Grantee, from time to time, may designate a new address and/or
another designated officer for purposes of providing notice hereunder, by written notice to the
other party given as provided herein
SSgCTION 9 CONFORMITY TO THE CONSTITUTION, STATUTES, CHARTER
AND CITY CODE OF ORDINANCES
This Franchise is granted subject to all applicable provisions of the Constitution and laws
of the State of Texas, the Charter of the City of Denton, Texas, and the Denton Code of
Ordinances, together with any and all rules and regulations adopted thereunder This Franchise
shall in no way affect, abridge, or impair the rights, obligations, or remedies of the parties
provided for by the Public Utility Regulatory Act of Texas, as amended
SECTION 10 CITYS RIGHT TO PURCHASE OR CONDEMN
In accordance with Section 9 above this Franchise shall be subject to all valid provisions
of the Charter of the City of Denton and all other applicable laws, including without limitation,
those provisions of Article XIII, "Franchises" of the Charter, that provide the conditions under
which the City may purchase the property of Grantee
SECTION 11 GOVERNING LAW AND VENUE
(a) This Franchise shall be governed by and construed in accordance with the laws of
the State of Texas and the City Charter of the City of Denton, Texas
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(b) Venue respecting any dispute ansmg hereunder shall exclusively he in Denton
County, Texas
(c) For purposes of construction, this Franchise shall be construed as having been
negotiated at arm's length and drafted by the combined efforts of the City and Grantee and their
respective legal counsel
SECTION 12 INDEMNIFICATION
Grantee shall defend, indemnify and save whole and harmless the City and all of its
officers, officials, agents, employees and attorneys, against any and all claims, lawsuits,
judgments, costs and expenses for personal injury (including death), property damage or other
harm for which recovery of damages is sought, suffered by any person or persons that may be
occasioned by, or anse out of, Grantee's breach of any of the terms or provisions of this
Franchise or of Sections 26-240, et seq , City Code, or by any negligent or strictly liable act, or
omission by Grantee, its officers, agents, employees, subcontractors, affiliates and subsidiaries,
in the construction, maintenance, operation, or repair of Grantee's Electric Utility System, or by
the conduct of Grantee's business in the City pursuant to this Franchise, except that the
indemnity provided for in this paragraph shall not apply to any liability resulting from the sole
negligence or fault of the City, its officers, officials, agents, employees, or separate contractors
In the event of joint and concurrent negligence or fault of both of the Grantee and the City,
responsibility and mdemnrty, if any, shall be apportioned comparatively in accordance with the
laws of the State of Texas without, however, waiving any governmental immunity defense or
provision available to the City under applicable Texas law, and without waiving any of the
defenses of the parties under applicable Texas law It is understood that it is not the intention of
the parties hereto to create liability for the benefit of any third parties, but that this Franchise
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shall be solely for the benefit of the City and Grantee, and shall not create or grant any rights,
contractual or otherwise, to any other person or entity
SECTION 13 NON-EXCLUSIVE FRANCHISE
The Franchise granted by this Ordinance is not exclusive Nothing contained herein shall
be construed so as to prevent the City from granting other like or similar rights, privileges, and
franchises to any other person, firm, corporation, or public utility
SECTION 14 ACCEPTANCE ADOPTION DATE, AND EFFECTIVE DATE
This ordinance shall take effect immediately from and after its passage, publication,
acceptance by Grantee in accordance with the provisions of the Charter of the City of Denton,
Texas, and after Grantee deposits its surety bond or provides satisfactory evidence of self
insurance with the City Finance Director, as required by Section 6 (1), and it is accordingly SO
ORDAINED The Effective Date of the Franchise granted hereunder is November 15, 2001, and
the Franchise shall be in force and effect from the Effective Date through November 15, 2011
SECTION 15 OPEN MEETING
It is hereby officially found and determined that the meetings at which this ordinance was
passed were open to the public as required by law, and that public notice of the time, place and
purpose of said meetings was given as required by law
ATTEST
JENNIFER WALTERS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
The City of Denton, Texas, acting herein by its duly constituted authorities, hereby
declares the foregoing Ordinance passed on first reading on the 18`h day of September, 2001, and
passed on second reading on the 2"d day of October, 2001, and passed on d reading on the
16`h day of October, 2001, and being finally e ectiv has once(th day of (ove ber, 2001
/s/ Abstained
Eulme Brock, Mayor Mark66urro`ugli Cod)i(
/s/ _ /stjaAq
Rom Beasley, Council tuber Perry Mci7ill,
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s `
Jane Mton, Council Member ike hillips, o cil 1\
t
Raymond edmon, Council Member
The above and foregoing ordinance read, adopted on first reading and passed to second reading
by the following votes, this the 18`h day of September, 2001, at a regular session of the City
Council
Eulme Brock, Mayor, abstained from voting
Mark Burroughs, Council Member, voting aye
Rom Beasley, Council Member, voting aye
Perry McNeill, Council Member, voting aye
Jane Fulton, Council Member, voting aye
Mike Phillips, Council Member, voting aye
Raymond Redmon, Council Member, voting aye
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The above and foregoing ordinance read, adopted on second reading and passed to third reading
by the following votes, this the 2"d day of October, 2001, at a regular session of the City Council
Euline Brock, Mayor, abstained from voting
Mark Burroughs, Council Member, voting aye
Rom Beasley, Council Member, voting aye
Perry McNeill, Council Member, voting aye
Jane Fulton, Council Member, voting aye
Mike Phillips, Council Member, voting aye
Raymond Redmon, Council Member, voting aye
The above and foregoing ordinance read, adopted on third reading and passed by the following
votes, this the 16`h day of October, 2001, at a regular session of the City Council
Eulme Brock, Mayor, abstained from voting
Mark Burroughs, Council Member, absent
Rom Beasley, Council Member, voting aye
Perry McNeill, Council Member, voting aye
Jane Fulton, Council Member, voting aye
Mike Phillips, Council Member, voting aye
Raymond Redmon, Council Member, voting aye
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STATE OF TEXAS §
COUNTY OF DENTON §
I, Jennifer Walters, City Secretary of the City of Denton, Texas, do hereby certify that the
above and foregoing is a true and correct copy of the Franchise Agreement Ordinance between
the City of Denton and TXU Electric omp nyy��oing business as TXU Electric The same is
now recorded as Ordinance Number -V!5 in the Ordinance Records of the City of
Denton, Texas
WITNESS MY HAND this the day of 0)1J�{,, 2001
fifer lters, City Secretary
(SEAL)
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ACCEPTANCE
WHEREAS, the City Council of the City of Denton, Texas, did on the 16`i' day of
October, 2001, enact an Ordinance entitled
AN ORDINANCE GRANTING TO TXU ELECTRIC COMPANY DOING BUSINESS AS
TXU ELECTRIC A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING,
MAINTAINING, AND USING AN ELECTRIC UTILITY SYSTEM IN THE CITY OF
DENTON, REGULATING THE CONSTRUCTION WORK DONE BY THE GRANTEE IN
THE CITY, PRESCRIBING THE DUTIES, RESPONSIBILITIES, AND RULE -MAKING
AUTHORITY OF THE CITY MANAGER AND THE CITY WITH RESPECT TO
ADMINISTRATION OF THIS FRANCHISE, PROVIDING FOR ENFORCEMENT OF THE
FRANCHISE, PRESCRIBING THE COMPENSATION TO BE PAID THE CITY BY THE
GRANTEE FOR THE FRANCHISE PRIVILEGE, SETTING FORTH THE TERM OF THE
FRANCHISE, PROVIDING FOR A SEVERABILITY PROVISION, PROVIDING FOR
ACCEPTANCE OF THE FRANCHISE BY GRANTEE, AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, said Ordinance was on th
subscribed by the Mayor Pro Tem of said City,
attested to by the City Secretary,
161h day of October, 2001, duly approved and
and the seal of said City was thereto affixed and
NOW, THEREFORE, TXU Electric Company, doing business as TXU Electric, hereby
in all respects ACCEPTS, APPROVES AND AGREES TO said Ordinance, and the same shall
constitute and be a binding contractual obligation of TXU Electric Company, doing business as
TXU Electric, and of the City, without waiver of any other remedy by TXU Electric Company,
doing business as TXU Electric, or the City, and TXU Electric Company, doing business as TXU
Electric, does hereby file this, its written acceptance, with the City Secretary of the City of
Denton, Texas, in her office.
DATED this the 14th day of November 2001
TXU ELECTRIC COMPANY
doing business as
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ATTEST
ACCEPTANCE FILED in the Office of the City Secretary of the City of Denton, Texas, this the
15 day of ` LftXAj-j2,, 2001
nmfer alters, City Secretary
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