2000-139AN ORDINANCE AUTHORIZING THE CITY'S ATTORNEYS TO INITIATE LITIGATION
AGAINST TXU ELECTRIC & GAS TO RECOVER DELINQUENT FRANCHISE FEES AND
TO PREVENT TXU ELECTRIC FROM OPERATING WITHIN THE CITY ON THE CITY'S
STREETS AND RIGHTS-OF-WAY WITHOUT OBTAINING A FRANCHISE FROM THE
CITY, AUTHORIZING THE CITY ATTORNEY TO SEEK THE ASSISTANCE OF
OUTSIDE COUNSEL, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Denton has received an audit from D~versffied Utility
Consultants, Inc mdlcaUng that TXU Electric & Gas ("TXU") owes the City $1,117,215 in
delinquent franchise fees, and
WHEREAS, TXU's electric franchise has expired and all efforts to negotiate a new
franchise with TXU have failed, and
WHEREAS, the City has undertaken extensive negotiations with TXU to negotiate a new
franchise agreement and resolve any outstanding franchise issues, and
WHEREAS, by letter dated March 22, 2000, Win Colbert, Senior Counsel for TXU, has
mdicated that the negotiations are at an impasse and has requested that the negotiations be
discontinued, and
WHEREAS, the City Council deems it m the pubhc ~nterest to pursue any and all legal
action, including litigation agmnst TX'U, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City's attorneys 0ncludlng anY outside counsel the City Council
may hire) are hereby authorized to lmtlate htlgatlon, including intervention or participation in
any class actions, agmnst TXU Electric & Gas, to collect any delinquent franchise fees shown
owing by the auchts of Diversified Utility Consultants, Inc, to seek a judicial finding, through a
declaratory judgment acUon or injunctive relief, that TXU must obtain a franchise from the City
in order to operate on its streets, rights-of-way, and other public property and that TXU must
comply with the City's electric services right-of-way ordinance, and to take all other action
necessary to favorably resolve all outstanding franchise issues with TXU
SECTION 2 That the City Attorney is authorized to seek the assistance of qualified
outside counsel to assist in this hUgatlon
SECTION 3 That this ordinance shall become effective immediately upon its passage
and approval
Page 1
PASSED AND APPROVED thts the
JACK~_~R, MA'COR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPI~VED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2