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21-1107FILE REFERENCE FORM X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Ordinance Created By 21-001 Approving the Settle Agreement – Ordinance 21-1107 Date Initials 01/05/2021 CW 06/08/2021 1 cw 21-1107ORDnANCE NO. AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNIC’IPAL CORPORATION, APPROVING THE SETTLEMENT AGREEMENT REACHED BETWEEN THE COSERV GAS CITIES AND COSERV GAS, LTD.; ORDERING COSERV GAS. LTD TO HvIPLEMENT THE RATES AGREED TO IN THE SETTLEMENT AGREEMENT: AUTHORIZING AND REQUIRING REIMBURSEMENT OF CITY’S REASONABLE RATE CASE COSTS; FINDING THAT THE MEETnVG AT WHICH THIS ORDNANCE IS PASSED IS OPEN TO THE PUBLIC AND THAT PUBLIC NOTICE WAS GIVEN AS REQUIRED; AUTHORIZING AND REQUIRING ISSUANCE OF A COPY OF THIS ORDNANCE TO COSERV GAS, LTD. AND LEGAL COUNSEL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on or about November 13, 2020, CoSer\r Gas, Ltd. (“CoServ”) pursuant to the Gas Utility Regulatory Act (“GURA”) § 104. 102 filed a Statement of Intent to Increase Rates with the Railroad Commission of Texas within the unincorporated areas it serves in the State of Texas and filed with the City of Denton, a Texas home-rule municipal corporation (the “City”), a Statement of Intent to change gas rates in all municipalities exercising original jurisdiction within CoServ’s service area, effective January 23, 2021; and WHEREAS, CoServ agreed to extend the proposed effective date to March 14, 2021; and WHEREAS, the City has exclusive original jurisdiction over the rates, operations, and services ofC:oServ within the City pursuant to GURA § 103.001; and WHEREAS, GURA § 103.021 grants a municipality authority to require a utility to submit information as necessary to make a reasonable determination of rate base, expenses, investment, and rate of return in the municipality; and WHEREAS, the City adopted Ordinance No. 21-001 to suspend the effective date of CoServ’s proposed rate changes for ninety (90) days pursuant to GURA § 104.107; and WHEREAS, the City joined with a coalition of similarly situated cities served by CoServ (the “CoSew Gas Cities”) to conduct a review of CoServ’s application by hiring and directing legal counsel and consultants to prepare a common response, to negotiate with CoServ, and to direct any necessary litigation; and WHEREAS, on or about May 14, 2021, the CoServ Gas Cities reached a settlement agreement resolving all issues relating to CoSew’s Statement of Intent to Increase Rates, including setting rates (the “Settlement Agreement”); and WHEREAS, the CoServ Gas Cities’ members and attorneys recommend that the City approve the Settlement Agreement; and WHEREAS, GURA§ 103.022 provides that reasonable costs incurred by cities in ratemaking activities are to be reimbursed by the regulated utility; WHEREAS, the City Council finds the Settlement Agreement to be reasonable and deems it to be in the public interest; NOW THEREFORE, THE COUNCE OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The Settlement Agreement reached between the CoSew Gas Cities and CoSew is hereby approved. SECTION 3. CoServ is hereby directed to implement the rates indicated in the Settlement Agreement. SECTION 4. Reimbursement by CoServ of the City’s reasonable rate case costs and receipt of such reimbursement by City or by legal counsel and consultants in payment of services rendered to City in connection with the CoServ rate case are hereby authorized and required. SECTION 5. It is hereby officially found and determined 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. SECTION 6. The Interim City Manager, or their designee, is hereby authorized to and shall send via email a copy of this Ordinance to CoServ, care of Charles Harrell, CoServ Gas, Ltd. 7701 South Stemmons Freeway, Corinth, Texas 76210 (CHarrell@coserv.com), and to Thomas Brocato at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701 (tbrocato@lglawfirm.com). SECTION 7. This Ordinance shall become effective immediately upon its passage and approval. The motion to approve this Ordinance was made by 3©c' and seconded by %c/ I Me\ he( . The Ordinance was passed and approved bythe following vote U -a : Aye y’’ v“ / ./ .// Nay Abstain Absent Gerard Hudspeth, Mayor: Vicki Byrd, District 1 : Brian Beck. District 2: Jesse Davis, District 3 : Alison Maguire, District 4: Deb Armintor, At Large Place 5: / P,ul Melt,er, At Large Place 6: / PASSED AND APPROVED this the ttb day of Tor.\e . , 2021 dTRARD HUD:th IaA RIOS. CITY SECRETARY ]B!I II)(r : hH#JSIIn1pA&n2d= :TTnF#JLLTFTR.£TLRkX bITY ATTORNEY E3][ • b 4yd)iq&WIL12@ b\tllllllll/