1997-206AN 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 COUIgCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the City ManaGer is hereby authorized to
execute, on behalf of the C~ty, a Franchise AGreement Between The
C~ty of Corinth, Texas and The City of Denton, Texas Municipal
Electric utility for the payment of a franchise fee in connection
w~th the furnishlnG of electric service by the C~ty of Denton
Municipal Electrlc Utility to customers in the C~ty of Corinth,
Texas, a copy of which AGreement is attached hereto and ~ncorporat-
ed by reference here~n
~II That the expendlture of funds as set forth ~n the
AGreement ls hereby authorized
~ That th~s ordinance shall become effective
immediately upon ~ts passage and approval
PASSED AND APPROVED this the ~&day of ~ , 1997
JA¢~ MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
THE STATE OF TEXAS §
COUNTY OF DENTON §
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 Corlnth, Texas, hereinafter called "CITY", and The C~ty of
DentOn, Texas, Municipal Electric Utility, hereinafter called
"DMEU"
WITNESSETH
WHEREAS, DMEU is operating an electric dlstr~but~on system,
· ncludlng poles, wires, transformers, meters, and other appurte-
nances wlthin the City of Corinth, Texas, and no compensation has
been pa~d, or is provided to be paid, to CITY for the use and
occupancy of the streets, alleys, highways, easements, parks, and
other public places w~th~n said CITY, or other charges ~n connec-
tion with such use, and
WHEREAS, it ~s 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
DMEU~to CITY for such purpose,
NOW, THEREFORE, in conslderat~on of the mutual covenants and
agreements hereinafter set forth, and the mutual benefits to be
derived therefrom, the parties hereto agree as follows
I That DMEU, its successors or assigns, shall pay annually
four percent (4%) of ~ts gross revenues from the sale of electric
power and energy at retail w~thln the corporate l~m~ts of the CITY
as full payment for the rlght and privilege of using and occupying
the present and future streets, alleys, h~ghways, easements, parks,
and Other publlc places w~thln 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 electr~clty
w~thin the corporate limits of CITY during the twelve (12) month
per~od e~d~ng 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 ~n which the pay-
ment ls made The first payment is based on the revenue collected
by DMEU during the twelve month per~od beginning June 1, 1997 and
ending May 31, 1998 Thls 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 ~ts calculations w~th 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, utzllty 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 1ts 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 mater~al 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 dlstrlbut~on 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 l~nes 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 l~ne and are used to d~str~bute power to smaller
areas of electric consumers. These electrlc lines are normally
connected to a feeder l~ne through a sect~onallz~ng device such
as a fuse or dlsconnect 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 C~ty Englneer or C~ty 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, h~ghway or pub-
llc place within the CITY disturbed by the DMEU in building, con-
structlng, renewing or maintaining ~ts electric ut~llty distribu-
tion system shall be restored within a reasonable t~me after the
completion of the work to the condition existing prior to such work
and such repair shall be ma~ntalned because of defective workman-
ship by DMEU for one (1) year from the date the surface of sald
street, alley, highway or public place ~s broken for such construc-
tion or maintenance after which t~me 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 per~od than shall
be reasonably necessary to execute work It is understood that it
is not the intention of the parties hereto to create any llabll~ty
for the benefit of third parties, but that th~s agreement shall be
solely for the benefit of the part~es hereto
7 Nothing herein shall enlarge, dlmlnlsh, 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 publlc DMEU shall comply w~th 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 1n
accordance with DMEU's tariffs
Page 3
9 Thzs Agreement supersedes and cancels any and all przor
agreements between CITY and DMEU relating to the matters herezn set
forth, and is the entzre agreement of the parties
10 Thzs Agreement shall terminate on May 31, 2012
11 This Agreement ls executed in duplicate originals
IN WITNESS WHEREOF, the Czty of Corznth, Texas has caused thzs
Agreement to be executed by mrs duly authorzzed Mayor, and the Czty
of Denton, Texas Municzpal Electric Utzlzty has caused thzs
Agreement ~.~.be execute~ by~zts duly authorzzed Czty Manager on
this the ./D~ day of (/,~ , 1997
"DMEU"
CITY OF DENTON, TEXAS
MUNICIPAL ELECTRIC UTILITY
TED~NAVIDES, CITY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
,,":'"6~ co~)',',~ ,,CITY,,
~,,,,~.... ...... .~,,,, CITY O~ CORINTH, TEX~
~'~-' A
ATTE°~ % 'o- ~ ~ ,'
ONNIE BELL, CITY ~CRETARy
A \FRANCIS K
Page 4
ORDINANCE NO 97-08-07-t7
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'
~ That the Mayor is hereby authonzed to execute, on behalf of the C~ty,
a Franchise Agreement between the C~ty of Denton, Texas, Munlc4pal Electric Utd~ty
(DMEU) and the C~ty of Connth, Texas, to furnish electnc service to authorized
customers ~n the C~ty of Connth, Texas, a copy of which Agreement ~s attached hereto
and ~ncorporated by reference hereto
~ That the franchise fee as set forth ~n the Agreement ~s hereby
approved
,~ That th~s ordinance shall become effective ~mmed~ately upon its
passage, and approval
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CORINTH,
TEXAS THIS Sevent:h DAY OF AUGUST, 1997
.."'2~, .%o."o..'!*'~,
/'~,,,~,,* It *,"~ % ,
~ ~,._ ~ _.~, .~ Shirley Sp~lle~)erg
. .. .. . Mayor
% * ....... .. .o-
",,,,,,,
ATTEST:
Conme Bell
C~ty Secretary