1993-133E:\WPDOCS\ORD\TUELEC.O
ORDINANCE NO. ?A5.7:/ 3
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE
EXISTING AGREEMENT BETWEEN THE CITY OF DENTON AND TEXAS UTILITIES
ELECTRIC COMPANY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Texas Utilities Electric Company (hereinafter called
"Company") is engaged in the business of providing electric utility
service within the City of Denton (hereinafter called "City") and
is using the public streets, alleys, grounds and rights-of-ways
within the City for that purpose under the terms of an Agreement,
approved by ordinance heretofore duly passed on October 20, 1987;
and
WHEREAS, Company has, pursuant to said Agreement ordinance,
been paying to the City a sum equal to three percent (3%) of its
gross revenues from the retail sale of electric power and energy
within the City for the rights and privileges set forth in said
Agreement ordinance and, in addition thereto, has offered reim-
bursement to the City for its ratemaking expenses pursuant to
Section 24 of the Public Utility Regulatory Act; and
WHEREAS, the City and Company desire to amend said Agreement
ordinance to provide for a different consideration to consist of a
sum equal to four percent (0) of its gross revenues from the
retail sale of electric power and energy within the City, which
different consideration includes, among other things, Company's
obligation to reimburse the City for its ratemaking and other regu-
latory expenses to be incurred by the City involving the regulation
of Company; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the Mayor is hereby authorized to execute
Amendment Number One, which is attached hereto and marked Exhibit
"A" to the Agreement between the City and Company.
SECTION II. That this ordinance shall take effect immediately
upon its passage and approval.
SECTION III. That it is hereby officially found and deter-
mined that the meeting at which this ordinance is passed is open to
the public as required by law and that public notice of the time,
place and purpose of said meeting was given as required by law.
SECTION IV. That the City Secretary is hereby directed to
affix a copy of this ordinance to Ordinance Number 87-186 and
inscribe thereon the notation that the Agreement has been amended
with the adoption of this ordinance.
SECTION V. That this ordinance shall take effect immediately
upon its passage and approval.
PASSED AND APPROVED this the day of , 1993.
BOB CASTLEBERRY,
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY : )az&3
APPROVED A LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
BY:
PAGE 2
E:\HPDOCS\K\TU.K
AMENDMENT NUMBER ONE TO THE AGREEMENT BETWEEN
THE CITY OF DENTON AND TEXAS UTILITIES ELECTRIC COMPANY
WHEREAS, Texas Utilities Electric Company (hereinafter called
"Company") is engaged in the business of providing electric utility
service within the City of Denton (hereinafter called "City") and
is using the public streets, alleys, grounds and rights-of-way
within the City for that purpose under the terms of an Agreement,
approved by ordinance heretofore duly passed on October 20, 1987,
by the governing body of the City and duly accepted by Company, a
copy of which is attached hereto as Exhibit "A"; and
WHEREAS, Company has, pursuant to said Agreement, been paying
to the City a sum equal to three percent (3%) of its gross revenues
from the retail sale of electric power and energy within the City
for the rights and privileges set forth in said Agreement and, in
addition thereto, has offered reimbursement to the City for its
ratemaking expenses pursuant to Section 24 of the Public Utility
Regulatory Act; and
WHEREAS, the City and Company desire to amend said Agreement
ordinance to provide for a different consideration to consist of a
sum equal to four percent (0) of its gross revenues from the
retail sale of electric power and energy within the City, which
different consideration includes, among other things, Company's
obligation to reimburse the City for its ratemaking and other regu-
latory expenses to be incurred by the City involving the regulation
of Company; NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
SECTION I. That Section 1 of the Agreement between the City
and Company, dated October 20, 1987, is hereby amended to provide
that the consideration payable by Company for the rights and
privileges granted to Company shall be four percent (0) of its
gross revenues from the sale of electric power and energy within
the corporate limits of the City, said changed percentage to be
applied to said gross revenues beginning on June 1, 1993, and being
payable as specified in said Agreement.
SECTION II. That Section 2 of the Agreement between the City
and Company is hereby amended to read as follows:
City agrees to accept such payment as full compensation
to be paid by Company for the privilege of using and oc-
cupying 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 Company's obligations to pay occupation taxes,
assessments, municipal charges, fees, rentals pole ren-
tals, wire taxes, license and inspection fees or charges,
administrative and processing fees, utility easement
taxes, franchise taxes, street taxes, street or alley
rentals, certain regulatory expenses under Section 24 of
the Public Utility Regulatory Act or any successor law,
and all other charges, levies, fees, rentals and taxes of
every kind, except the usual general or special ad
valorem taxes which the City is authorized to levy and
impose upon real and personal property, assessments for
public improvements, and sales taxes as allowed by State
or local law.
SECTION III. That Company shall make a one-time payment
hereunder for the purpose of making the changed consideration as
specified in Section I hereof effective on June 1, 1993, without
altering the payment dates specified in said Agreement, said one
time payment being due and payable thirty (30) days after the date
of execution of this agreement, and being a sum calculated as
follows:
(a) Company shall determine the monthly average of its gross
revenues from the retail sale of electric power and energy within
the City during the period upon which the most recent Agreement
payment made to the City prior to June 1, 1993, was based;
(b) the said monthly average of its said gross revenues shall
be multiplied by 1% (0.01); and
(c) the product so calculated shall be multiplied by the num-
ber of whole months from June 1, 1993, through the last day of the
last month of the period for which the most recent Agreement pay-
ment made to the City prior to June 1, 1993, was made.
SECTION IV. The parties agree that Company will continue to
reimburse the City's ratemaking expenses, if any, in connection
with the appeal and any remand of Public Utility Commission of
Texas Docket No. 9300 that are otherwise reimbursable under Section
24 of the Public Utility Regulatory Act, and will continue to
reimburse the City's ratemaking expenses, if any, in connection
with Public Utility Commission of Texas Docket No. 11735 that are
otherwise reimbursable under Section 24 of the Public Utility Reg-
ulatory Act to the extent that said ratemaking expenses are incur-
red through the entry of the last action by the Public Utility
Commission of Texas (i.e., the said commission's order overruling
the last motion for rehearing) in said Docket No. 11735. The City
hereby agrees that any ratemaking expenses incurred in connection
with said Docket No. 11735 that the City incurs on appeal of said
order will be the City's sole responsibility and further agrees
in the event that the City is a participant in the joint inter-
vention of cities managed by the Steering Committee of TU Electric
Company Service Area Cities intervening in Docket No. 11735, that
PAGE 2
the City decides to continue to participate with the Steering Com-
mittee in such appeal of said order, and Company is required to
reimburse said Steering Committee for ratemaking expenses under
Section 24 of the Public Utility Regulatory Act that are incurred
on appeal of said order in Docket No. 11735 to reimburse Company
the City's share of reimbursable expenses related to said appeal
and owed by Company to said steering Committee determined by the
methodology chosen by the said Steering Committee (the City to
notify Company of the method so chosen by the Steering Committee
prior to the submission of an invoice by the steering Committee for
the payment by Company of said reimbursable expenses related to
said appeal).
SECTION V. That in all respects, except as specifically and
expressly amended by this document, the said Agreement heretofore
duly passed by the governing body of this city and duly accepted by
Company shall remain in full force and effect according to its
terms until said Agreement terminates as provided therein.
SECTION VI. That this Agreement shall not take effect until
and unless Company, within fifteen (15) days from July 27, 1993,
files its written acceptance of this Agreement with the Office of
the City Secretary in substantially the following form:
To the Honorable Mayor and City Council:
Texas Utilities Electric Company (TU Electric),
acting by and through the undersigned authorized officer,
hereby accepts, on this the 3rd day of August , 1993,
Ordinance No. 93-133 amending the current Agreement
between the City and TU Electric.
SECTION VII. This amendment shall take effect upon Company's
acceptance as prescribed by Section
EXECUTED this theG?eday of , 1993.
e0_7 /`1
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
PAGE 3
APPROVED AS TO LEGAL FORM:
DEBRA A DRAYOVITCH, CITY ATTORNEY
BY:
TEXAS UTILITIES ELECTRIC COMPANY
BY:
Senior Vice PRESS] T
PAGE 4
300 2039L
THE STATE OF TEXAS S
COUNTY OF DENTON S
EXHIBIT "A"
AGREEMENT BETWEEN THE CITY
OF DENTON, TEXAS AND TEXAS
UTILITIES ELECTRIC COMPANY
This agreement, made and entered into by and between the City
of Denton, Texas, hereinafter called "City", and Texas Utilities
Electric Company, hereinafter called "Company".
WITNESSETH:
WHEREAS, Company is operating an electric distribution
system, including poles, wires, transformers, meters, and other
appurtenances within the City of Denton, Texas, and no
compensation has been paid, is presently being paid, or is
provided to be paid, to City for the use and occupancy of the
streets, alleys, highways, easements, parks, and other public
places within said City, or other charges in connection with such
use; and
WHEREAS, it is the desire of the City and Company 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 Company for such purpose;
NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter set forth, and the mutual benefits to be
derived therefrom, the parties hereto agree as follows:
1. That Company, its successors or assigns, shall pay annually
three percent (3%) of its gross revenues from the sale of elec-
tric power and energy at retail in the City as full payment for
the right and privilege of using and occupying the present and
future streets, alleys, highways, easements, parks, and other
public places within the City. The first payment shall be due on
acceptance and subsequent payments shall be made on or before
October 1 of each year thereafter. Each payment shall be based
on the gross receipts from the retail sale of electricity within
the corporate limits of City during the twelve (12) month period
ending July 31 next preceding the payment and shall be payment
for the aforesaid right and privilege during the twelve (12)
month period beginning with October 1 of the year in which the
payment is made. The first payment on acceptance is based on the
revenue collected during the preceding twelve month period
beginning August 1, 1986 and ending July 31, 1987. This payment
covers the street rental agreement period of October 1, 1987,
through September 30, 1988, with subsequent payments to be
rendered as previously stated. Company shall provide a complete
report in support of its calculations with each such payment and,
upon request, shall provide and aiiow inspection of all necessary
books and records of Company.
301
2. City agrees to accept such payment as full compensation to
be paid by Company 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 Company'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, utility easement taxes,
franchise taxes, street taxes, street or alley rentals and all
other charges, levies, fees, rentals and taxes of every kind,
except the usual general or special ad valorem taxes which the
City is authorized to levy and impose upon real and personal
property, assessments for public improvements, and sales taxes as
allowed by State or local law.
3. That the Company shall indemnify and save whole and harm-
less the City and all of its 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 distri-
bution 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 material 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 Company
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 distribution 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, provided that the
excess of the cost of underground facilities over the cost of
overhead facilities shall be paid to Company by the developer,
builder, users of such underground facilities or the City. In
such designated areas, distribution feeder lines may be overhead
and transformers and similar egw.pment may be pad-mounted. The
PAGE 2
J0C
City Council or the City Manager, acting on their behalf, may,
upon petition by the Company, waive the requirement of
underground installation if good cause is shown for such
exemption. As used in this section:
"Feeder lines" shall mean those electric lines that
emanate from substations to distribute power throughout
an area.
"Lateral lines" shall mean
emanate from a feeder line
power to smaller areas of
electric lines are normally
through a sectionalizing
disconnect switch.
those electric lines that
and are used to distribute
electric consumers. These
connected to a feeder line
ievice such as a fuse or
"Service lines" shall mean those electric lines which,
through a transformer, connect a lateral line to a
customer's service entrance.
6. Company shall, on or before the 15th day of each month,
report to the City Engineer each opening or disturbance of the
paved surface of any street, alley, highway, public right-of-way
or public places by Company during the preceding month. The
surface of any street, alley, highway or public place within the
City disturbed by the Company in building, constructing, renewing
or maintaining its electric utility distribution system shall be
restored within a reasonable time after the completion of the
work to the condition existing prior to such work and such repair
shall be maintained because of defective workmanship by Company
for one (1) year from the date the surface of said street, alley,
highway or public place is broken for such construction or
maintenance after which time such maintenance shall become the
responsibility of the City. Company shall be responsible for
promptly restoring, to as good condition as before the commence-
ment of the Company'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
period than shall be necessary to execute work. It is understood
that it is not the intention of the parties hereto to create any
liability for the benefit of third parties, but that this
agreement shall be solely for the benefit of the parties hereto.
7. Nothing herein shall enlarge, diminish, amend, affect or
otherwise prejudice any certificate of convenience and necessity
granted to either City or Company.
8. Company's property and operations within the corporate
limits of City shall be subject to such reasonable rules and
regulations of City as may be a-1-horized by applicable law for
the protection of the general public. Company shall comply with
PAGE 3
303
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 in accordance with Company's tariffs.
9. This agreement supersedes and cancels arl prior agreements
between City and Company relating to matters herein set forth.
10. This agreement shall terminate September 30, 1997.
IN TESTIMONY WHEREOF, witness t e ,,V gnatures o arties
hereto, in duplicate original, this day of ,
1987.
CITY OF DENTON, TEXAS
BY:
RA ST
FHeSq
N /MAY0R
ATTEST:.
\ 'r
J I ER ALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY:
TEXAS POWER $ LIGHT COMPANY,
a division of Texas Utilities
Electric Company
BY:
z~z
TOM F. B AKEY
EXECUTIVE VICE ESIDENT
PAGE 4
WELECTRIC
Terry R. Griffin
Sr. Vice President
TO THE MAYOR AND CITY COUNCIL
OF THE CITY OF DENTON, TEXAS:
August 3, 1993
The undersigned hereby accepts the terms of that certain franchise passed and adopted
by the City Council of the City of Denton, Texas, by ordinance duly approved by the Mayor
and attested by the City Secretary on July 27, 1993, same being, "AN ORDINANCE
AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE EXISTING
AGREEMENT BETWEEN THE CITY OF DENTON AND TEXAS UTILITIES ELECTRIC
COMPANY; AND PROVIDING AN EFFECTIVE DATE. "
IN TESTIMONY WHEREOF, witness the corporate signature of Texas Utilities Electric
Company by its duly authorized officer, this the 3rd day of August, 1993.
TEXAS UTILITIES ELECTRIC COMPANY
Terry R. fin
Sr. Vice Pres•dent
Original acceptance of franchise, of which the foregoing is a true copy, was filed in my office
on the J'M day of j , 1993, at~ o'clock -P-.m.
61
'ry Se retary
City of Denton, Texas
(CITY SEAL)
1506 Commerce Street Dallas, Texas 75201 (214) 698-3650