1999-353 ORDIN, CENO
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 C~ty of Denton, whose current francluse agreement and
ordinance is due to expire on September 30, 1999, TXU and the City are m the process of
negotiations which they expect will, m the near future, lead to the adoption by the City Council
of a new right-of-way regulatory or&nance 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 maintmn 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
SE TI N That the City Manager is hereby authorized to enter into an Agreement for
Holdov~tmg 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
flus ordinance is considered is open to the pubhe 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
~ That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED flus the c:~/~'day of ~ , 1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
CITYA TTORNEY'S OFFICE
215 E MCKINNEY STREET
DENTON, TEXAS 76201
(940) 349-8333
FAX (940) $82-7923
CITY OF DENTON, TEXAS
September 21, 1999
Mr Steve Taylor
District Manager
TXU Electric
Re Agreement for Holdover of Existing Electric Franchise Agreement and Ordinance
Dear Mr Taylor
Thank you for your comments and participation ~n the discussion of the TXU Electric
franchise and the Electric Service Ordinance conducted by the C~ty Council on September 14,
1999 As the Council directed at that time, C~ty Staffwfll be working on revisions to the Electric
Service Ordinance and the accompanying franchises for TXU Electric and CoServ Electric m
order to bnng revised documents to the Councd at ~ts first meeting ~n October The City Staff
will also be contacting you to receive your ~nput into these documents
As you are aware, TXU Electnc's current franchise from the C~ty expires on September
30, 1999 It is antlmpated that the C~ty wall, w~thln a few weeks, adopt a new regulatory
ordinance governing the use and occupancy of the rights-of-way by electrm service providers
under which franchises will be granted Mmntenance of the status quo with regard to TXU
Electnc's existing franchise w~ll enable TXU Electric and the C~ty to concentrate on the new
ordinance and franchise in a t~me-sensmve manner
Your representations to the Councd 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 contlnuatton of the status quo for one month until November 1,
1999, whmh includes, without hmltatlon, the obhgatlon of TXU Electric to pay a 4% franchise
fee and permits TXU Electric the right to continue to lawfully operate ~n the C~ty, without
~ntermptlon, pending adoption by the Councd of a new right-of-way regulatory ordinance and
the granting of a new franchise to TXU Electric To reiterate, dunng th~s ~ntenm period, TXU
Electric may continue to use and occupy the rights-of-way in the City under the terms of the
existing franchise, and wall continue to make franchise fee payments to the C~ty, as required in
the existing franchise
Ded, cated to Quahty Serv,ce
Duphcate originals of th~s Agreement are being provided for your s~gnature Please stgn
and return one ongmal and keep the other original for your records
S~ncerely,
C~ty of Denton, Texas
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
AGREED
TXU ELECTRIC
Steve Taylor, D~s~ct Manager
Dated September ~[ ,1999
S \Our Documonts\Correspondcnce\Lctters\99\TXU Electric Fmch Holdover Lttr doc