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2001-405FILE REFERENCE FORM [ 2001-405 ] Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Amended by Ordinance No. 2002-289 09/03/02 AN ORDINANCE GRANTING TO TXU ELECTRIC COMPANY DOING BUSINESS AS TXU ELECTRIC, A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING, AND USING AN ELECTRIC UTILITY SYSTEM IN THE CITY OF DENTON, REGULATING THE CONSTRUCTION WORK DONE BY THE GRANTEE IN THE CITY, PRESCRIBING THE DUTIES, RESPONSIBILITIES, AND RULE-MAKING AUTHORITY OF THE CITY MANAGER AND THE CITY WITH RESPECT TO ADMINISTRATION OF THIS FRANCHISE, PROVIDING FOR ENFORCEMENT OF THE FRANCHISE, PRESCRIBING THE COMPENSATION TO BE PAID THE CITY BY THE GRANTEE FOR THE FRANCHISE PRIVILEGE, SETTING FORTH THE TERM OF THE FRANCHISE, PROVIDING FOR A SEVERABILITY PROVISION, PROVIDING FOR ACCEPTANCE OF THE FRANCHISE BY GRANTEE, PROVIDING FOR RETROACTIVE EFFECT, AND PROVIDING AN EFFECTIVE DATE WHEREAS, TXU Electric Company, doing business as TXU Electric, has been using and occupying Public Rights-of-Way m the City of Demon ("City") for over a year, including all of calendar year 2000, without a franchise therefor from the City, and WHEREAS, from 1987 until November 1999 TXU-Electnc, formerly known as Texas Utdltms Electric Company operated under a franchise granted by the City under Ordinance 87- 162, as amended, and WHEREAS, TXU Electric and the C~ty are involved in litigation whmh includes a claim by the Cay that TXU Electric is illegally operating on City rights-of-way and other public property w~thout a franchise or other gram of authority by the C~ty Councd of the City, which allegation ~s denied by TXU Electric, and WHEREAS, the parties rash to enter into a new franchise agreement, and WHEREAS, the City of Denton has adopted Ordinance No 99-373, which was amended and superseded by Ordinance No 2000-041 and further amended and superseded by Ordinance No 2001~406, amending the City of Denton Code of Ordinances to provide tmffonn regulations to govern the use and occupancy of Pubhc Rights-of-Way and other City property by Grantees of Electric Utility Serwce in the City, such provls~ons bemg codified as Sections 26-240, et seq, City Code, and ~ncludlng the requirement that such Grantees obtain a franchise from the C~ty for such use and occupancy, and WHEREAS, Sections 26-240, et seq, of the City Code apply to TXU Electric, and its provision, of Electric Utlhty Service m the City, except to the extent that those provisions are changed by this Franchise, and require TXU Electric to obtain a franchise from the City, NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 DEFINITIONS As used ~n this ordinance, cap~tahzed terms shall have the defined meanings set forth ~n Ordinance No 2001-406, codified as Sections 26-240, et seq, City of Denton Code of Ordinances, and such defimt~ons are hereby adopted as is set forth fully herein with the following exceptions only The term "Gross Revenues" shall include all revenues which are found by a final judgment of a Court or through a final settlement of the parties in the htlgatlon styled Ctty of Denton, Texas, et al vs TXU Electric Company, et al currently pending ~n the 134th Jud~cml D~stnct Court of Dallas County, Texas ("TXU Litigation") to be ~ncluded within th~s term under the compensation prows~on set forth ~n Section 1 of the prewous franchise as amended by Ordinance No 93-137 and as more fully set forth in Section 5 hereof The term 2 "Effective Date" ~s the date that the Franchise granted herein becomes effective, which shall be November 15, 2001 The term "Acceptance Date" is the date that Grantee signs and dates the Acceptance attached to this Ordinance SECTION 2 FRANCHISE GRANTED (a) There is hereby GRANTED to TXU Electric (hereinafter called "Grantee"), for the term set forth m Scot,un 14 of th~s Ordinance, a Franchise to use and occupy the Public Rights-of-Way and other public property in order to construct, erect, own, suspend, install, extend, renew, repmr, mmntmn, operate, and conduct in the City of Denton, Texas, (hereinafter referred to as "City"), a plant or plants and poles, w~res, pipelines, cables, underground conduits, manholes, fiber optic cable for its own use, and all other facilities and equipment needed and necessary for the maintenance and operation of an Electric Utility System (b) Th~s Franchise does not grant to Grantee the right, privilege, or authority to occupy and use the Public R~ghts-of-Way or other City property to engage in any other business witlun the C~ty other than the provision of Electric Utlhty Service, as set forth m this Franchise Provided, however, that only the addltmnal following related electric business that Grantee is prowdmg wlthm the City as of the Effective Date of this Francluse shall be anthonzed 1 allowing other ent~t~es to attach wires, cables, and other materials to Grantee's poles ("pole contacts") 2 attaching cellular telephone facilities to Grantee's equipment and facihtles Any additional business or services to be performed by Grantee in the City, other than Electric Utlhty Services, shall not be included w~tlun this Franchise, but instead, shall be the subject of a separate agreement or by an appropriate amendment to this Franchise (c) All of Grantee's activities and occupation of the Public Rights-of-Way ~n the City shall be governed by the provisions of Sections 26-240, et seq, City Code, as such provls~ons 3 may be amended from time to time in the sole d~scretlon of the City except as changed and amended ,by this Franchise (d) Grantee and City agree that Ordinance No 2001-406, codified as Sections 26- 240, et seq, City Code, and this Franchise together constitute one comprehensive franchise agreement/ordinance provided, however, that the terms and conditions of this Franchise shall govern and control over any conflicting terms of City Code Sections 26-240 et seq as they currently exist or may be amended ~n the future SECTION 3 ADMINISTRATION OF FRANCHISE BY CITY (a) The City Manager is the pnnmpal City officer responsible for the adm~mstrat~on of this Franchise, and shall generally oversee and review the operations of Grantee under th~s Franchise (b) The City may delegate to the City Manager the exercise of any of the powers conferred upon the City by its Charter, under ~ts Code of Ordinances, or by regulation or role, or by law, relating to the supervision and regulation of Grantee in the exercise of the rights and privileges herein conferred to Grantee The City Manager shall have the authority to make and pubhsh, after written notice to those affected and after a hearing, such rules and regulations as are necessary to carry out the duties and powers conferred upon the City, acting by and through its City Manager, by the Public Utility Regulatory Act, as amended, and otherwise (¢) It shall be the right and duty of the City Manager and the governing body of the City at all times to keep fully informed as to all matters in connection with, or affecting the construction, reconstruction, mmntenance, operation, and repmr of Grantee's facilities located within C~ty's Pubhc Raghts-of-Way and other City property as well as its accoant~ng methods and procedures in connection therewith, the conduct of the Grantees' business ~n the City, and 4 the Electric Utthty Servace being provaded by Grantee in the City to the extent reasonably necessary to admlmster th~s franchise and to exercase its regulatory authority over Grantee SECTION 4 RECORDS, REPORTS, AND INSPECTIONS (a) The Grantee shall mtunta~n ~ts books and records as prescribed in Section 26-249, City Code (b) Grantee, at Grantee's sole cost and expense and upon request by City, wall promptly prowde cop~es of financml and operating reports filed wath the Public Utthty Commasslon of Texas, the Federal Energy Regulatory Commission, and the Secuntaes and Exchange Commass~on, or thear successor agenmes, in no event later than fifteen (15) dayq after the receipt of a request therefor from the City (c) Grantee shall keep the C~ty fully reformed as to all matters ~n connection wath or affecting the constructaon, reconstruction, removal, mmntenance, operataon, or repair of Grantee's facilities w~thm the C~ty's Pubhc Rights-of-Way and other Caty property, mcludlng, w~thout hmztat~on, all accounting methods and procedures used by Grantee in determamng the franchise fee amounts to be prod the City (d) Grantee shall prowde the Caty, upon request, a current chmn-of-command orgamzatlonal chart of Grantee showing all of ~ts officers, managers and supervasors, together w~th their respective t~tles, addresses and telephone numbers, who have the ultamate responsabzllty for managing, operating, and malntmmng Grantee's Electric Utdaty System an the Caty (e) The C~ty Manager, or his designee, shall have the right, at reasonable tames, to respect the plant, eqmpment, and other property of the Grantee located wathln the C~ty's Pubhc Raghts-of-Way and other Caty property, and, for the sole purposes of the C~ty's review of 5 francluse fee payments, the admlmstration of this franchise, the exermse of C~ty's regulatory authority over Grantee, and the types and location of Grantee's facthtles in the C~ty's Pubhc Pdghts-of~Way and other C~ty property, to examine, audit, and obtmn cop~es of the papers, books, accounts, documents, and other busmess records of the Grantee and its affiliates, consistent w~th state law and in accordance with the provisions of Section 26-249, Caty Code (0 The C~ty shall mtmn all of the lnvest~gatlve powers and other nghts prowded to the C~ty by its Charter and by state law SECTION 5 COMPENSATION TO BE PAID TO THE CITY (a) Grantee shall pay the C~ty an annual Franchise Fee as set forth in Section 26-242, City Code except the following shall control and govern over subsectmn 26-242(a) "Until December 31, 2001 Grantee, ~ts successors or assigns, shall pay as compensation for the rights and pnwleges conferred by this Francluse, four percent (4%) of ~ts gross revenues from the sale of electric power and energy w~thln the corporate hmlts of the City, as gross revenues are defined m Section 1 of th~s Franchtse Beginning January 1, 2002 the compensation to be prod the C~ty shall be determined by the remmmng sections of section 26-242 of the C~ty Code, especmlly subsectxon 26-242(d) and m accordance w~th this Section 5 These payments shall be ~n heu of, and shall be accepted as payment for all of Grantee's obhgat~on to pay other charges as defined ~n subsection 26-242(b) and 26-244(e) of the City Code, save and except regulatory expenses m excess of $25,000 under Section 33 023, Pubhc Utthty Regulatory Act of Texas ("PURA" Tex Utfl Code 33 023) or any successor law and the other excepted charges set forth m subsection 26-242(b) of the C~ty Code (b) The first payment hereunder shall be due and payable on or before November 15, 2001, for the penod October 1, 2001 through December 31, 2001 based on Gross Revenues 6 The second payment hereunder shall be due and payable on or before May 15, 2002, for the period January 1, 2002 through March 31, 2002 Th~s payment and all subsequent payments shall be based on the kilowatt hour charge ~n accordance w~th Section 5(a) hereof and Section 26-242 of the C~ty Code The third payment shall be due and payable on or before August 15, 2002, for the three-month period ended June 30, 2002 Subsequent payments shall be due and payable quarterly thereafter on or before the fifteenth day of the second month following the end of the three-month period upon which smd payment ~s based Grantee shall furnish to C~ty at the t~me each payment of franchise fee ~s made to C~ty hereunder, a sufficiently detatled financial statement showing how the Gross Revenues amount was arrived at and how the amount prod to the C~ty was determined, for such quarter After Grantee ~mplements customer theme, the ~nfonnatxon provided to the C~ty shall ~nd~cate the number of kdowatt hours of electricity dehvered by the Grantee ~n the C~ty (e) If Grantee has not already done so w~th~n mnety (90) days after the Acceptance Date of th~s Franchise, Grantee shall pmwde ~nformatlon to the C~ty 0) documenting the total number of kilowatt hours of electnmty dehvered by Grantee ~n calendar year 1998 to all of Grantee's retail customers whose consuming famht~es' points of delivery were located wtth~n the C~ty's boundaries, and (n) documenting Grantee's Gross Revenues ~n calendar year 1998 derived from the prowslon of Electric Ut~hty Servme within the C~ty's boundaries (d) By November 15, 2001, Grantee shall compute the franchme fee that Grantee would have prod to the Caty m calendar year 1998 at the rate of 4% of Grantee's Gross Revenues 7 for 1998, as determined in paragraph (c) above, calculate the amount of the franchise fee set forth m number of dollars per lolowatt hour, and shall notify the City of the Grantee's computation and shall provide all documents showing all gross revenues received and earned in the City for calendar year 1998 including all work papers in sufficient detml to permit an accurate rephcataon of the results For the purpose of this Franchise "work papers" shall mean all documents and records utilized by Grantee of the procedures followed, the tests performed, the mformat~on obt~uned and the conclusions reached to compile and calculate the gross revenues received and earned in the City for calendar year 1998 and the calculation of the franchise fee set forth m number of dollars per kilowatt hours which will include any work programs, analyses, memorandum, abstracts of Grantee's documents and schedules or commentaries prepared City shall have 60 days to review such computation to determine whether St has been made in accordance with the provisions of §33 008, PURA If City disagrees with the~calculataon, then City and Grantee will work together in good ftuth to compute the franchise fee m accordance with the provisions of §33 008, PURA If the parties reach agreement the City and Grantee agree that they will use the agreed amount to calculate Grantee's franchise fee per kilowatt hour, in accordance with §33 008, PURA By January 15, 2002, the City shall notify Grantee of the amount of the franchise fee set forth in number of dollars per kilowatt hour By making and accepting this calculation, both City and Grantee agree that neither party IS hereby watvmg any clanns, causes of action, or defenses that they are asserting in the TXU Lat~gat~un The amount of the franchise fee that Grantee was required to pay the C~ty in 1998, and the amount of the number of dollars per kilowatt hour shall be determined by a final settlement or judgment of the court an this litigation, and additional franchise fees, if any, that may be owed to the City shall be prod m accordance with that final settlement or judgment of the court (e) Grantee shall pay the kilowatt hour-based fi:anchlse fee instead of the franchise fee based upon Grantee's Gross Revenues, commencing with service rendered by Grantee on and after Jantlary 1, 2002, or commencing w~th service rendered by Grantee on and after the first day of the first month following the effective date of Grantee's implementation of customer chmce, whmhever is later SECTION 6 SPECIAL PROVISIONS The following specml prows~on of this Franchise shall control and govern over the conflicting prowslons of Section 26-247 of the C~ty Code, as ~t currently crests or may be amended in the future (a) Except for emergenmes, Grantee shall advise the City at least thirty (30) days prior to any major construction Major construction shall be defined as xnstalhng, mmntaunng, constructing, relocating or replacing any of Grantees plants, poles, pipeline wires, cables, underground condmts, manholes, fiber optic cable or other facflmes (1) when such construction will disrupt traffic flow, (2) conflicts, or interferes wxth any proposed street or thoroughfare expansion, or (3) that conflmts, xnterferes w~th or xs m close proximity to exlstxng City facilities including water, samtary sewer, storm drains, street hghts, traffic sxgnals and other electric condmt Grantee shall prowde the lmtml work plans and drawings for the proposed construction In addtt~on, Grantee shall assess and report on the impact of its proposed constmctxon on the City enmronment Such plans and reports may be rewewed by the City to ensure that, among other items 1) aesthetic and good planning pnnc~ples have been given due consideration, 2) adverse impact on the envxronment has been mammxzed, and 3) that all apphcable laws ~nclud~ng 9 bmldlng and zomng codes and mr and water pollution regulattons are compiled with Changes requested by the Caty shall be tncorporated into Grantee's construction Within twelve months of the Adoption Date of tlus Franchise, Grantee shall use its best efforts to comply w~th 26- 247(a) of the C~ty Code Grantee may be given up to an additional twelve months to comply w~th this section if ~t can demonstrate to the City through its C~ty Manager that due to cost, techmcal dafficulttes or ~ncompatlblhty between the City's and Grantee's GIS systems it needs more time to produce a current map or,ts facthtles in a digital format compatible with the City's Geographic Information System ("GIS") [26-247] SECTION 7 FRANCHISE AND OTHER VIOLATIONS Upon ewdence being received by the govermng body of the City that a violation of th~s Franchise Ordinance, or a C~ty Charter provls~on, or an ordinance of the City lawfully regulating Grantee m the furmshlng of service hereunder is occumng, or has occurred, ~t shall at once cause an ~nvestlgat~on to be made by the City Manager or hm designee Notice, penalties, and procedures for ensunng compliance w~th this Franchise shall be as provided in Sections 26-240, et seq , C~ty Code SECTION 8 NOTICES (a) All notices, including commumcat~ons and statements that are required or permitted under the terms of this Franchise, shall be in writing Service of a notice shall be accomphshed by hand-dehvery, by registered or certffied mml, return receipt requested (postage prepald)~ or by reputable overnight dehvery service All notices shall be effective upon the receipt ofnotme by the mtanded recipient 10 (b) All notices shall be sent to the City and Grantee at the following addresses CITY OF DENTON, TEXAS TXU ELECTRIC COMPANY Cfly Manager Town Manager C~ty of Denton 100 W Mulberry 215 E MeKanney Denton, Texas 76201 Denton, Texas 76201 (c) The C~ty and Grantee, fi.om t~me to t~me, may designate a new address and/or another designated officer for purposes of prowdmg notme hereunder, by written not,ce to the other party g~ven as prowded here~n SECTION 9 CONFORMITY TO THE CONSTITUTION, STATUTES, CHARTER AND CITY CODE OF ORDINANCES Th~s Franchise as granted subject to all apphcable provisions of the Constitution and laws of the State of Texas, the Charter of the C~ty of Denton, Texas, and the Denton Code of Ordinances, together with any and all roles and regulations adopted thereunder Th~s Franchise shall ~n no way affect, abridge, or ~mpa~r the rights, obhgat~ons, or remedies of the parties prowded ,for by the Pubhc Utthty Regulatory Act of Texas, as amended SECTION 10 CITYS RIGHT TO PURCHASE OR CONDEMN In accordance with Section 9 above th~s Franchise shall be subject to all valid provisions of the Charter of the C~ty of Denton and all other apphcable laws, ~nclud~ng w~thout limitation, those prowsaons of Article XIII, "Franchises" of the Charter, that provide the conditions under which the City may purchase the property of Grantee SECTION 11 GOVERNING LAW AND VENUE (a) Thru Franchise shall be governed by and construed in accordance with the laws of the State of Texas and the C~ty Charter of the C~ty of Denton, Texas 11 (b) Venue respecting any dispute arising hereunder shall exclusively he in Denton County, Texas (c) For purposes of constmcUon, this Franchise shall be construed as having been negotiated at arm's length and drafted by the combined efforts of the City and Grantee and their respective legal counsel SECTION 12 INDEMNIFICATION Grantee shall defend, ~ndemmfy and save whole and harmless the C~ty and all of ars officers, officials, agents, employees and attorneys, against any and all elmms, lawsmts, judgments, costs and expenses for personal injury 0ncludmg death), property damage or other harm for winch recovery of damages as sought, suffered by any person or persons that may be occasioned by, or arise out of, Grantee's breach of any of the terms or provisions of this Franchise or of Sections 26-240, et seq, City Code, or by any negligent or strictly liable act, or omission by Grantee, its officers, agents, employees, subcontractors, affihates and subsidiaries, an the eonstmcUon, mmntenance, operation, or repatr of Grantee's Electric Utihty System, or by the conduct of Grantee's business m the City pursuant to this Franchise, except that the mdemmty provided for an this paragraph shall not apply to any hablhty resulting from the sole negligence or fault of the C~ty, its officers, officials, agents, employees, or separate contractors In the event of jomt and concurrent neghgence or fault of both of the Grantee and the City, responsibility and mdemmty, ff any, shall be apportioned comparatively in accordance with the laws of the State of Texas w~thout, however, waiving any governmental immumty defense or provision available to the City under apphcable Texas law, and without wmvmg any of the defenses of the parhes under apphcable Texas law It as understood that ~t ~s not the intention of the parties hereto to create liability for the benefit of any third parhes, but that this Franchise 12 shall be solely for the benefit of the City and Grantee, and shall not create or grant any rights, contractual or otherwise, to any other person or entity SECTION 13 NON-EXCLUSIVE FRANCHISE The Franchise granted by this Ordinance ~s not exclusive Nothing contmned here~n shall be construed so as to prevent the C~ty from granting other hke or s~mdar rights, pnwleges, and franchises to any other person, firm, corporation, or public utility S]~CTION 14 ACCEPTANCE, ADOPTION DATE, AND EFFECTIVE DATE This orthnance shall take effect ~mmedlately from and after ~ts passage, publication, acceptance by Grantee ~n accordance w~th the prows~ons of the Charter of the City of Denton, Texas, and after Grantee deposits its surety bond or prowdes satisfactory evidence of self tnsurance with the C~ty Finance Director, as reqmred by Section 6 (1), and ~t ~s accordingly SO ORDAINED The Effective Date of the Franchise granted hereunder ~s November 15, 2001, and the Franchise shall be in force and effect from the Effective Date through November 15,2011 SECTION 15 OPEN MEETING It is hereby officially found and determmed that the meetings at which this ordinance was passed were open to the public as reqmred by law, and that pubhc notme of the time, place and purpose of smd meetings was given as required by law RONI BEASLEY, MfOR PRO TEM ATTESq~ JENNIFER WALTERS, CITY SECRETARY 13 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY The City of Denton, Texas, acting herein by its duly constituted authorities, hereby declares the foregoing Ordinance passed on first reading on the 18th day of September, 2001, and passed on second rea&ng on the 2nd day of October, 2001, and passed on.fl~.rd reading on the 16th day of October, 2001, and being finally e e~as ~tl~.day of_h(ove/Onber,~/ ~ / k/.' - ~'"~ / 2001 /SI Abstained Euhne Brock, Mayor M~k~urro~gh~Co ~fl ~m~ Rom Beasley, Cotmcfl ~mber perry Mc~ll, C~.e_mber Jane l~lton, Cotmcfl Member l~lk~ Flhflhps~ C~'~-~l'ff~l I~lembe( Ray~nondrRedmon, Council Member The above and foregoing ordinance read, adopted on first reading and passed to second reading by the following votes, this the 18th day of September, 2001, at a regular sesmon of the City Council Euhne Brock, Mayor, abstmned from voting Mark Burroughs, Council Member, voting aye Rom Beasley, Council Member, vohng aye Perry McNefll, Cotmcfl Member, voting aye Jane Ful'~on, Council Member, voting aye Mike Phillips, Cotmcfl Member, voting aye Raymond Redmon, Council Member, voting aye 14 The above and foregoing ordinance read, adopted on second rea&ng and passed to third reading by the following votes, this the 2nd day of October, 2001, at a regular session of the C~ty Cotmcd Euhne Brock, Mayor, abstmned from voting Mark Burroughs, Council Member, voting aye Rom Beasley, Councd Member, voting aye Perry McNelll, Councd Member, voting aye Jane Fulton, Councd Member, voting aye M~ke Phllhps, Councd Member, votmg aye Raymond Redmon, Councd Member, voting aye The above and foregmng or&nance read, adopted on third rea&ng and passed by the following votes, thts the 16th day of October, 2001, at a regular session of the C~ty Councd Euhne Brock, Mayor, abstained from voting Mark Burroughs, Councd Member, absent Rom Beasley, Council Member, voting aye Perry McNedl, Council Member, votmg aye Jane Fulton, Council Member, voting aye Mike Philhps, Councd Member, voting aye Raymond Redmon, Council Member, voting aye 15 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 and TXU Electric ~qn!_p~n)L~.omg busxness as TXU Electric The same is now recorded as Ordinance Number/t?t~/-~)...~ m the Ordinance Records of the Cxty of Denton, Texas WITNESS MY HAND th, sthe /~:~'~dayof ~F~ ,200, (~i'f~{' 'v~i'~r~, City Secretary (SEAL) 16 ACCEPTANCE WHEREAS, the City Council of the City of Denton, Texas, did on the 16th day of October, 2001, enact an Ordinance entitled AN ORDINANCE GRANTING TO TXU ELECTRIC COMPANY DO1NG BUS1NESS AS TXU ELECTRIC A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING, MAINTAINING, AND USING AN ELECTRIC UTILITY SYSTEM IN THE CITY OF DENTON, REGULATING THE CONSTRUCTION WORK DONE BY THE GRANTEE IN THE CITY, PRESCRIBING THE DUTIES, RESPONSIBILITIES, AND RULE-MAKING AUTHORITY OF THE CITY MANAGER AND THE CITY WITH RESPECT TO ADMINISTRATION OF THIS FRANCHISE, PROVIDING FOR ENFORCEMENT OF THE FRANCHISE, PRESCRIBING THE COMPENSATION TO BE PAID THE CITY BY THE GRANTEE FOR THE FRANCHISE PRIVILEGE, SETTING FORTH THE TERM OF THE FRANCHISE, PROVIDING FOR A SEVERABILITY PROVISION, PROVIDING FOR ACCEPTANCE OF THE FRANCHISE BY GRANTEE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, said Ordinance was on the 16th day of October, 2001, duly approved and subscribed by the Mayor Pro Tern of smd C~ty, and the seal of smd C~ty was thereto affixed and attested to by the C~ty Secretary, NOW, THEREFORE, TXU Electric Company, dmng business as TXU Elecmc, hereby ~n all respects ACCEPTS, APPROVES AND AGREES TO smd Ordinance, and the same shall constitute and be a b~nd~ng contractual obhgat~on of TXU Electnc Company, doing business as TXU Elecmc, and of the C~ty, without wmver of any other remedy by TXU Electric Company, dmng bus~ness as TXU Electric, or the C~ty, and TXU Electric Company, dmng bus~ness as TXU Electric, does hereby file th~s, ~ts wntten acceptance, wtth the C~ty Secretary of the C~ty of Denton, Texas, in her office. DATED thls the 14th dayof November ,2001 TXU ELECTRIC COMPANY ~~.~~_~domg business as TX ELE . C 17 ATTEST ACCEPTANCE FILED ~n the Office of the City Secretary of the C~ty of Denton, Texas, th~s the 15~ day of ~ ,2001 ~_~n~ifer~alter~, C~ty ~ecretary 18