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ORDINANCE NO g=— 0 %
AN ORDINANCE AUTHORIZING THE CITY'S ATTORNEYS TO INITIATE LITIGATION
AGAINST TXU ELECTRIC & GAS TO RECOVER DELINQUENT FRANCHISE FEES AND
TO PREVENT TXU ELECTRIC FROM OPERATING WITHIN THE CITY ON THE CITY'S
STREETS AND RIGHTS -OF -WAY WITHOUT OBTAINING A FRANCHISE FROM THE
CITY, AUTHORIZING THE CITY ATTORNEY TO SEEK THE ASSISTANCE OF
OUTSIDE COUNSEL, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton has received an audit from Diversified Utility
Consultants, Inc indicating that TXU Electric & Gas ("TXU") owes the City $1,117,215 in
delinquent franchise fees, and
WHEREAS, TXU's electric franchise has expired and all efforts to negotiate a new
franchise with TXU have failed, and
WHEREAS, the City has undertaken extensive negotiations with TXU to negotiate a new
franchise agreement and resolve any outstanding franchise issues, and
WHEREAS, by letter dated March 22, 2000, Win Colbert, Senior Counsel for TXU, has
indicated that the negotiations are at an impasse and has requested that the negotiations be
discontinued, and
WHEREAS, the City Council deems it in the public interest to pursue any and all legal
action, including litigation against TXU, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City's attorneys (including any outside counsel the City Council
may hire) are hereby authorized to initiate litigation, including intervention or participation in
any class actions, against TXU Electric & Gas, to collect any delinquent franchise fees shown
owing by the audits of Diversified Utility Consultants, Inc , to seek a judicial finding, through a
declaratory judgment action or injunctive relief, that TXU must obtain a franchise from the City
in order to operate on its streets, rights -of -way, and other public property and that TXU must
comply with the City's electric services right-of-way ordinance, and to take all other action
necessary to favorably resolve all outstanding franchise issues with TXU
SECTION 2 That the City Attorney is authorized to seek the assistance of qualified
outside counsel to assist in this litigation
SECTION 3 That this ordinance shall become effective immediately upon its passage
and approval
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PASSED AND APPROVED this the � day of 2000
JACI I R, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY 40
APPkOVED AS TO LEGAL FORM
HERBERT L PROUTY _CITY ATTORNEY
-M
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