HomeMy WebLinkAbout2000-3695 0., T= OWin.tt 9 27 00 &1
ORDINANCE NO XX-J;�'l
AN ORDINANCE AUTHORIZING THE CITY OF DENTON, TEXAS, TO JOIN "THE
STEERING COMMITTEE OF CITIES PARTICIPATING IN THE TXU FRANCHISE
LITIGATION" RELATING TO THE CAUSE OF ACTION STYLED THE CITY OF
DENTON TEXAS VS TEXAS UTILITIES COMPANY AND LONE STAR GAS COMPANY
OR SUCH OTHER CAUSES OF ACTION AS SUCH STEERING COMMITTEE MAY
DETERMINE SEEKING DELINQUENT FRANCHISE FEES FROM TXU, LONE STAR GAS
AND OTHER ENTITIES ASSOCIATED WITH TXU, AUTHORIZING THE CITY OF
DENTON TO SERVE AS TREASURER OF THE STEERING COMMITTEE,
AUTHORIZING THE EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT
WITNESS FEES, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on December 12, 1999 an audit on behalf of the City of Denton estimated
TXU Electric and Lone Star Gas owed delinquent franchise fees in excess of $1,000,000 based
on findings that certain revenues were improperly excluded from the calculation of gross
receipts/revenues, and
WHEREAS, the law firms of Strasburger & Price, L L P and Bucek & Frank, L L P
have filed suit against TXU and Lone Star Gas on behalf of the City of Denton in the 393`d
District Court in Denton County for delinquent franchise fees (TXU Franchise Litigation), and
WHEREAS, a consolidated action by cities in the TXU service area seeking delinquent
franchise fees will reduce duplication of effort and the attendant legal and expert witness fees
and court costs, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City of Denton agrees to join with other similarly situated Texas
cities in the TU/LONE STAR GAS systems in forming the Steering Committee of Cities
Participating in the TXU Franchise Litigation to pursue causes of action against Texas Utilities
Company, Lone Star Gas Company and other entities associated with TXU to collect delinquent
franchise fees
SECTION 2 That the City of Denton agrees to contribute 50¢ for each individual
residing within its corporate limits based on the 1990 U S Census (except for such portion of its
population that may not be residing within the TU/Lone Star Gas service area) or $2,000,
whichever is more, to underwrite the cost of legal and expert witness fees and related costs to be
expended on behalf of the cities in this matter, 250 [or $1,000 if applicable] being due on or
before October 31, 2000, and the other 25¢ [or $1000], if assessed, being due and payable on the
date the Steering Committee of Cities Participating in the TXU Franchise Litigation authorizes
such assessment Provided, however, Denton's assessment will be reduced by multiplying 25¢
times its 1990 population times the ratio desired by dividing the total number of TXU electric
customers by the total number of Denton electric customers and the total number of TXU Lone
Star Gas customers by the total number of Denton gas customers
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SECTION 3 That Herbert L Prouty, City Attorney for the City of Denton, or his
designee shall be the City's primary contact and liaison in this matter and such individual shall
be eligible to serve on "Steering Committee of Cities Participating in the TXU Franchise
Litigation" as its Treasurer Notices to the City should be addressed as follows
Name/Title Herbert L Prouty, City Attorney
City/Address City of Denton 215 E McKinney Denton, Texas 76201
Telephone (940) 349-7799
Fax (940) 382-7923
E-mail hlnroutyna cityofdenton com
SECTION 4 That the liaison named above is authorized to take those steps reasonable
and necessary to comply with the intent of this ordinance and the liaison and the City Manager
are authorized to make the expenditures required by this ordinance
SECTION 5 That this Ordinance shall become effective immediately upon its passage
and approval AG��
PASSED AND APPROVED this the �= day of (�/('�_> 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATT
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EULINE BROCK, MAYOR
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