The URL can be used to link to this page

2013-333ORDINANCE NO. 2013-333 AN ORDINANCE AUTHORIZING EXECUTION OF A FRANCHISE AGREEMENT WITH THE CITY OF DENTON, ACTING THROUGH ITS ELECTRIC UTILITY, GRANTING A FR.ANCHISE TO MAINTAIN, AND OPERATE FACILITIES WITHIN THE CITY OF CORiNTH FOR THE DELIVERY AND SALE OF ELECTRICITY; PROVIDING FOR THE PAYMENT OF A FEE FOR THE USE OF THE PUBLIC RIGHTS-OF-WAY; PROVIDING THAT SUCH FEE SHALL BE IN LIEU OF OTHER CHARGES; SETTING FORTH THE TERM OF THE FRANCISE; PROVIDING FOR THE RATIFICATION AND RETROACTIVE APPROVAL OF SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 15th day of July, 1997 the City Council approved a Franchise Agreement by and between the City of Corinth, Texas and the City of Denton, Texas Municipal Electric Utility (the "Prior Agreement"), by Ordinance No. 97-206; and WHEREAS, the fifteen-year tertn provided for in the Prior Agreement has now expired; the City of Denton, Texas has since that time also renamed its municipal electric utility, as Denton Municipal Electric; and both the City of Corinth, Texas and the City of Denton, Texas desire to adopt a new Franchise Agreement, and have its approval to be retroactively effective as of July 15, 2012; and WHEREAS, the City of Denton, Texas continues to supply electric services using the public rights-of-way of the City of Corinth, Texas; and the Corinth City Council by its Ordinance No. 13-09-19-21 has approved the new Franchise Agreement on the 21St day of September, 2013, a copy of which ordinance is attached hereto as well; and the Denton City Council accordingly finds that the new Franchise Agreement, should be in all things approved; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The recitations contained in the preamble hereto are true and correct and are incorporated herewith as a part of this Ordinance. SECTION 2: The City Manager is hereby authorized to execute the "Franchise Agreement between the City of Corinth, Texas and the City of Denton, Texas Municipal Electric Utility" (the "AgreemenY'), in substantially the form of the Agreement which is attached hereto as Exhibit "A" and which is incorporated herewith by reference. SECTION 3: This Agreement is retroactively effective and approved as of July 15, 2012, the date of expiration of the previous Franchise Agreement. SECTION 4: The expenditure of funds as provided for in the attached Agreement is hereby authorized. SECTION S:W The remainder of this ordinance shall become effective upon its passage and approval. PASSED AND APPROVED this the �� da of '� 2013. ...«�.w�._...____ Y ,...�,�'' �..� �,�� r g �` �' �� °' � �' ,�a � � , � ... � � � �� ... ........ � � �. �..�_ ......- -- r�E�I� � 1�C..i��b�C��G�i��, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY I� ��' ANITA B�.�q l�� ►��.�,�a �, CITY ATTORNEY : The City of Denton, Texas, acting herein by its duly-constituted City Council, hereby declares the foregoing Ordinance passed on first reading on the Sth day of November, 2013; and passed on second reading on the 19th day of November, 2013; and passed on third reading on the 3rd day of I��r��w•, 2013; and being finally effective as of the 3rd day of January, 2014, � . � � „. �, /s/ �'',, �'� ��,��' "��m�� , /s/.....�� °�� ""�::� � .. � �� Pete Kam Ma or-I�� •�� " �..... �. . _ ___ _ ........... Mark 1�.. T��c��,,�i!9��t��• �_. � p, Y ��,�� / ��:tc�r� �a.��a7��r. C"c�i.��i.l�d��c�a�a��•. ��a� 2 J%��i,�f;��t��l�a�•��Ra�, �`��GS��,il��;��:�ber, Place 3 � � ,� � /s/ � �"� ,., .� �� /s/ �___- ___ � � . �i �lr.� �1��,��, Plac �� ........................_ _—. James I:�i�a��ro (,:F<7�� ' e 6 Kevm Roden, Council Member, Place 1 /s/ Joey Hawkins, Council Member, Place 4 � The above and foregoing ordinance was read, adopted on first reading and passed to second reading by the following votes, this the Sth day of November, 2013, at a regular session of the City Council. Mark A. Burroughs, Mayor, voting absent Pete Kamp, Mayor-Pro-Tem, voting yes Dalton Gregory, Council Member, voting yes Jim Engelbrecht, Council Member, voting yes James King, Council Member, voting yes Kevin Roden, Council Member, voting yes Joey Hawkins, Council Member, voting yes The above and foregoing ordinance as read, adopted on second reading and passed to third reading by the following votes, this the 19�' day of November, 2013, at a regular session of the City Council. Mark A. Burroughs, Mayor, voting yes Pete Kamp, Mayor-Pro-Tem, voting yes Dalton Gregory, Council Member, voting yes Jim Engelbrecht, Council Member, voting yes James King, Council Member, voting yes Kevin Roden, Council Member, voting yes Joey Hawkins, Council Member, voting yes The above and foregoing ordinance was read, adopted on third reading and passed by the following votes, this the 3`d day of December, 2013, at a regular session of the City Council. Mark A. Burroughs, Mayor, voting yes Pete Kamp, Mayor-Pro-Tem, voting yes 3 Dalton Gregory, Council Member, voting yes Jim Engelbrecht, Council Member, voting yes James King, Council Member, voting yes Kevin Roden, Council Member, voting yes Joey Hawkins, Council Member, voting absent STATE OF TEXAS § § COUNTY OF DENTON § I, Jennifer Walters, City Secretary of the City of Denton, Texas, do hereby certify that the above and foregoing is a true and correct copy of the Franchise Agreement Ordinance between the City of Denton, Texas and the City of Corinth, Texas. The same is now recorded as Ordinance Number 2013-333 in the Ordinance Records of the City of Denton, Texas. WITNESS MY HAND this the � day of �!�� r� �� 5 2013. (SEAL) ********* 4 � � ""� ��ai��r �� 1��'� C�'it Secretar � �" Y � .w ACCEPTANCE WHEREAS, the City Council of the City of Denton, Texas, did on the 3`d day of December, 2013, enact an Ordinance entitled: AN ORDINANCE AUTHORIZING EXECUTION OF A FR.ANCHISE AGREEMENT WITH THE CITY OF DENTON, ACTING THROUGH ITS ELECTRIC UTILITY, GRANTING A FRANCHISE TO MAINTAIN, AND OPERATE FACILITIES WITHIN THE CITY OF CORINTH FOR THE DELIVERY AND SALE OF ELECTRICITY; PROVIDING FOR THE PAYMENT OF A FEE FOR THE USE OF THE PUBLIC RIGHTS-OF-WAY; PROVIDING THAT SUCH FEE SHALL BE 1N LIEU OF OTHER CHARGES; SETTING FORTH THE TERM OF THE FRANCISE; PROVIDING FOR THE RATIFICATION AND RETROACTIVE APPROVAL OF SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, said Ordinance was on the 3`a day of December, 2013, duly approved and subscribed by the Mayor of said City, and the seal of said City was thereto affixed and attested to by the City Secretary; NOW, THEREFORE, the City of Corii��, Te�a�� '�'��r�l�}� �I� all r�,��ect� �.��'T�, APPROVES AND AGREES TO said Ordinance� ��d tl�� n� s1�a�� 1�� ' ��'��i�� c�n�r��ct��al �a�1i.��tie�� i tia� �i�y �f �c�rif�ila, rl��.�� t�i�+� �f tlae C�ity� +af L1c��3, 't'�xa�, witl�ac�u� w�iv�r nf" {��y cr��1c�• r��-��tiy �ay ila� �iiy ��rfi {.�arir�tl�, i��:��, �x• tl�� ity c�l` T?�a�icai�, °�`��a�, �� i��c �ity t�fC"t�a��tl�, Te�� l�e� ��r��}�° i�i� thi�3 iis writ��z� �ccc��a7ce, �ii� i�1e �'it� �e�r�t��°� ��'ti�� City of Denton, Texas, in her office. r �� , 2013. DATED this the �-�day of �� a;; �.`°, �� F,,,,t<<�E,,,,, THE CITY OF CORINTH, TEXAS �� -.�,��` .� � i �.r��;$ . �p �� ~µ _, � �m � � ry � } � ��+ � 1s �' �'•� °��e,� �. „�,... —�—" _ �„��-�� . , B �"> �».- � � y• . a� � . � — � —.m � � � ,.�� - � . � _� �� ATTEST: � ��n. ��4 .� �� r� � ,,, ��4 �` �� By� , `� ' �P�" + ,,�=� � ��" � * * * * * * ��F��",�.�1C� FILED in the Office of th� �"'ity Secretary of the City of Denton, Texas, this the �$F 4 .,/ . �iC�� '�; �.,��rn•d�r�:�:.. �.:.. k� �:... .i �0� �� . ,�.�-m— ��' .. P i �. .. ��.. 7 � � �'.� }�[ �. ,, � , ,,.. ,t � �r�.��J, � �� _,, .,� ,�: �1��• �� i�:r�, City Secretary �� FRANCHISE AGREEMENT BETWEEN THE CITY OF CORINTH, TEXAS AND THE CITY OF DENTON, TEXAS MUNICIPAL ELECTRIC UTII,ITY THIS AGREEMENT, made and entered into by and between the City of Corinth, Texas, hereinafter called "CITY", 3300 Corinth Parkway, Corinth, Texas ?6208, and the City of Denton, Texas, as owner of Denton Municipal Electric Utility, hereinafter called "DMEU", 2l5 East McKinney Street, Denton, Texas 76201. WITNESSETH WHEREAS, DMEU is operating an electric distribution system, including poles, wires, transformers, meters, and other appurtenances within the City of Corinth, Texas; and WHEREAS, the Franchise Agreement between the CITY and the DMEU has expired, and it is the desire of the CITY and DMEU to enter into Franchise Agreement to provide for the use and occupancy of the present and future streets, alleys, highways, public utility easements, parks and other public property within the CITY (hereinafter the "Public Right-of-Way"); NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and the mutual benefts to be derived therefrom, the parties hereto agree as follows: l. That DMEU, its successors or assigns, shall pay annualty four percent (4%) of its gross revenues from the sale of electric power and ener� at retail within the corporate limits of the CITY as full payment for the right and privilege of using and occupying the Public Right-of-Way of the CITY of Corinth, Texas.. The first payment shall be due on August 1, 2013 and subseyuent 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 electricity within the corporate limits of CITY during the twelve (12) month period ending May 30 next preceding the payment, and shall be payment for the aforesaid right and privilege during the twelve (12) month period beginning with August 1 of the year in which the payment is made. The first payment is based on the revenue collected by DMEU during the twelve month period beginning June 1, 2012 and ending May 31, 2013. This payment, and this Agreement, covers the street rental agreement period of August 1, 2012 through July 31, 2013, and provides for subsequent payments to be rendered by DMEU as previously stated, DMEU shall provide a complete report in support of its calculations with respect to each such payment and, upon the CITY's written request, shall, within a reasonable time, provide and allow inspection of all necessary books and records of DMEU. The CITY and DMEU each agree that this Agreement shall operate in such a manner as to provide for the continuous payment of franchise payments to the CITY, despite the fact that the previous Franchise Agreement, had inadvertently expired. 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 CIT'Y, 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, utility 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 its officers, agents, and employees from any and all claims for injury or damage to p�r�� w� p��pu�y ��si�it�c� Gy� ar �r�� rt ��`t�� c�ax��t��ti�� a�:aintenance, operation, or repair of �� ,��.��p,�� ,�;��, �� 4�t�.a,�y�;t��n ��r�►, �r �a� t�� cr�c��t �Fbusiness in the CITY. Provided, �a�svv�^��t, n�thi�� 1��r�i� s�ad� b� ��a�stru�d �ta is�d�rr��i% �.I�� +�I"1"�' ��i��st the CITY's own negligence or f��,�t. �4 i� �a��r�t��a� th�ut it i� �� t1�� i��t�nt9�� 1" t�� pa��Ci�:� ��tc� t!� create liability for the beneft of third parties, but that this Agreement shall be solely �"�r �h� b��k aa�t�e 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 trave) 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. �. 'T"h�� iiro �n�+ �`ut�arr� c��tck%rar�, �n� n�ww �3�w�la��;�e��s, I�t�rai a��d ��i�� d��t�iba��ie�c� V��c� �s�� wires s��lC ka� �G�,��i �r ��mzstr�ct�� d�r�r�ur�� u�t �1� �r��s d��w�� x� ��v�n�� c��" ��t�u��ti�r� ks� tA�� CITY f�r �G� ��e��a� utal�ta�� s� �� pl�� tt�a�r��r�Y pr�� c�� y �ca�ri�a� �rdir��. I�� s�a�� d��i��1:�� areas, d��r�bt�l�aza ��d�r ii�� er��r �� v��ae� ar�ci �^�ro��°�rrr��r� at�� rr�i1��° ��ui�nn�n� �;�� p��_ 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: "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 line and are used to distribute power to smaller areas of electric consumers. These electric lines are normally connected to a feeder line through a sectionalizing device such as a fuse or disconnect switch. "Service lines" shap mean those electric lines which, through a transformer, connect a lateral line to a customer's service entrance. 6. DMEU shall provide reasonable notice to the City of planned work within the Public Right-of- Way and shall, except in cases of emergency conditions or work incidental in nature, obtain a permit if required by the City's ordinances before commencing work. DMEU shall notify the City as soon as practicable regarding work performed under emergency conditions. 7. The City reserves the right to lay and permit to be laid, power, sewer, gas, water, and other pipe lines or cables and conduits, and to do and permit to be done, �w��P �a��i�r�ra�urtc� �r��i ��r�r�ead work that may be deemed necessary or proper by the City in, across, along, s�v�r �nd un��r �rty ��li� Right-of- Way occupied by DMEU, and to change any curb or sidewalk or the �r��le ��' ��r ��t. Ir� ��rwnitting this work to be done, the City shall not be liable to the DMEU for any resulting damage to DMEU's facilities. City shall notify DMEU in a reasonable time of any projects that will affect DMEU's facilities located in the Public Right-of-Way. When required to by City to remove or relocate its facilities located within Public Right-of-Way that are in conflict with the City project, DMEU shall do so, at its expense, as soon as practically possible with respect to the scope of the project, unless such work is for the primary purpose of besutification or to accommodate a private developer. Facilities are deemed to be in conflict to the extent that the proposed City facilities are determined by DMEU to be inconsistent with electric distribution industry standazd safe operating practices for existing facilities. Franchise Agreement Page 2 of 4 �, �,p�� a��i ��abr�►i� �n�ir��ring plans of those projects involving significant construction in a Public �t6��a� W�� tr� ti�� :it�r �c�� review prior to construction and promptly after completion of constru�tian sk��l �ar�a�v�d� tc� �9�� +��t� accurate and complete "as-built" plans showing the nature and specific location of all work done. �, "Ti�� lca��i�ar� c�f`,�d� �"��il�t��s ca�' M�� k��i b� �uR�,j��t t� ��ap��l by the City Manager or the I+��,�� si��t�d r��ar��a�tatirr� ��°ivr t� c�r�stru�t�c�tro� �r��¢�� ltaw�wr�r, said approval shall not be ��r�a:��r��k��,� �r�thl��Id� lra t�m� ��'�a�� c�f ��rxrd��ct ��r�� 6�� crc��i�a� �w�'t�� facilities of DMEU and the y��;i�� s�" t�� "a�il�ta�� af �it„� �r �rth�r �t�� "r�1��hisees within the Public Right-of-Way that cannot be resolved, the City Manager shall resolve the conflict and determine the location of the respective facilities. DMEU shall not interfere with power, telephone, cable or water facilities, sanitary or storm sewer facilities or other municipal or public use of the Public Right-of-Way. DMEU has the right to request City Council review of any actions concerning DMEU's use of the Public Rights-of-Way. 10. DMEU shall be responsible for promptly repairing and restoring, to as good condition as before the commencement of the DMEU's work, all Public Right-of-Way within a reasonable time after the completion of the work Such repairs ��a�1 �� in��ir��d b��a�� a�" d�i��t�v� v�"�r�"��as��p bY �� for two) years from the date of repairs �r��i r��t�r�t��n. T�� st�� i��t., ��1��, t�i�,k�r�ua�� m� y��i� pl:�� shall be encumbered for a longer p�ri�� ih��u �� +��,�" ��^��"J" ��' '��'��'�� '�''°��• �� understood that it is not the intention of the parties 1��re�� +� �r�� n�+ l��.b��il�+' f�r� tl�� i� ��" C�airc� parties, but that this Agreement shall be solely for the benefit of the parties hereto. 11. Nothing herein shall enlarge, diminish, amend, affect or otherwise prejudice any certificate of convenience and necessity granted to either CITY or DMEU. 12. 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 public. DMEU shall comply with all 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 DMEU's tariffs. 13. This Agreement supersedes and cancels any and all prior agreements between CITY and DMEU relating to the matters herein set forth, and is the entire agreement of the parties. 14. This Agreement shall terminate on May 31, 2028. 15. This Agreement is executed in duplicate originals. Any notices required or desired to be given from one party to the other party to this ordinance shall be in writing and shall be sent to the addresses set forth in the preamble of this Agreement. 1N W17'NESS WHEREOF, the City of Corinth, Te�cas has caused this Agreement to be executed by its d��u�� tc�i°ir��3 �rt�ya�°, �t�d th� i»ity �s�" l�eu�taa , i��as N��s �mu��cl tazi� �.�a��t t� k�� e��t�� ay i�:� dul� ��mfi�ari�.�� "i� 'M�na�� i�is �h+� �� ci�� af� � � � ° � � � � �!�1 �. Franchise Agreement Page 3 of 4 AT"TEST: JENNIFER WALTERS, ��;�`�'' SECRETARY �' , � �3�; � � ��. f�,,�� '� � "� LEGAL FORM: r�11`'�11I ' ;�!�i�C�C��, CITY ATTORNEY ,��-,,,�, ��d,�� ,�� °� �''� �,,� By ; , � �.�. � �,. ��..., � w�, A "T��7": �1'� �' �'�»9� ^�� "I"T� SECRETARY Franchise Agreement Page 4 of 4 "DMEU" C[TY OF DENTON, TEXAS A Texas Municipal Corporation �� ""�g ��`� �� ".� ��. ��.'�w �."�.""�� _... ��(�d�.��, C, �a�w��"�1��i4., CI'�""b" MANAGER "CI'I'Y" q4��, Sd � � �� I w�Z�, � �a �� . ��: _* �.� ��" �"�� ,. r�f��fA„�'OkXtlFkv41^IMYi OF CORINTH, TEXAS i� N ° � CITY OF CORINTH COUNCIL AGENDA ITEM AGENDA TYPE Regular Special Consent Reviewed by Finance Yes Not Applicable ❑ Workshop � Executive ❑ Public Hearing ��Reviewed by Legal � Yes Not Appllcable Council Meeting Date: September 19, 2013 Department: Finance ' Dept Head. Lee Ann Bunselmeyer� �� mm�� m� De t Head Si� W��mm �� t tA _.._. � P gnature. ��. f�-� �-rxl,r� � �j� � n w�.._ _. .. ........�. � �__w�. � .. __ ,. ...__.� ..� � . .......n . ..�w... � ...�. ._ _ ---- Agenda Item Coordinator/Phone/Ext. #: 940-498-3221 � _ � City Manager Reviewed/Approval niti�l� Date � �� , � ACTION REQUESTED: ❑ORDINANCB # w� ❑ RESOLUTION # ❑ APPROVAL ❑ CHANGE ORDER � AGREEMENT �' APPROVAL OF B1D � AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER w� _�_m � ' AGENDA CAPTION Consider approval of ordinance authorizing execution of a franchise agreement with the City of Denton, acting through its electric utility, granting a franchise to maintain and operate facilities within the City of Corinth for the delivery and sale of electricity; providing for the payment of a fee for the use of the public rights-of-way; providing that such fee shall be in lieu of other charges; setting forth the term of the franchise; and providin� an effective date. FINANCIAL SUMMARY QN/A ❑GRANT FUNDS ❑OPERATING EXPCNSE ❑REVENUE ❑CI P �BUDGETED ❑NON-BUDGETED PRIOR CURRENT FUTURE II FISCAL YEAR: YEAR YEAR YEAR(Sl TOTALS Proposed Revenue Amount $8,638 $8,500 $8,500 � FUND(S) TO BE USED: General �� Utility $ Special $ BACKGROUND/SUMMARY OF ITEM The proposed fifteen yeaz agreement provides that Denton Municipal Electric Utility (DMEU) will pay the City of Corinth four percent (4%) of its gross revenues from the sale of electric power and energy at retail within the corporate limits of the City as full payment for the right and privilege of using and occupying the Public Right-of Way. The first payment was due on August 1, 2013 and subsequent payments will be made on or before August 1 of each year thereafter. The franchise agreement will expire May 31, 2028. The following Notice of Franchise was published in the Denton Record Chronicle on August 19, 2013. The City of Corinth intends to adopt an ordinance granting a franchise to the City of Denton, Texas to use the City streets and rights-of-way for the purpose of maintaining and operating equipment and power poles to deliver and supply electricity to customers within the City. STAFF OPTIONS & RECOMMENDATION Staff recommends a r�r�r�� of the Franchise �. �r�e��t with the C"i#, of Denton. C,i�� rf �u�pp�a�¢tin� T�r��aara��ra#�°1,�1ai�rst� Attached: Prior Action/Review by Council, Boards, Commissions or (�t�acr Agencies: 1- Franchise agreement between the City of Corinth and the �it of Denton.