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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