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2000-369 0RDINANCE NO d~) -d~ ~ AN ORDINANCE AUTHORIZING THE CItY OF DENTON, TEXAS, TO JOIN "THE STEERING COMMITTEE OF CITIES PARTICIPATING 1N THE TXU FRANCHISE LITIGATION" RELATING TO THE CAUSE OF ACTION STYLED THE CITY OF DENTON, TEXAS VS TEXAS UTILITIES COMPANY AND LONE STAR GAS COMPANY OR SUCH OTHER CAUSES OF ACTION AS SUCH STEERING COMMiI1EE MAY DETERMINE SEEKING DELINQUENT FRANCHISE FEES FROM TXU, LONE STAR GAS AND OTHER ENTITIES ASSOCIATED WITH TXU, AUTHORIZING THE CITY OF DENTON TO SERVE AS TREASURER OF THE STEERING COMMITTEE, AUTHORIZING THE EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES) AND PROVIDING AN EFFECTIVE DATE WHEREAS, on December 12, 1999 an audit on behalf of the City of Denton estimated TXU Electric and Lone Star Gas owed delinquent franchise fees in excess of $1,000,000 based on findings that certmn revenues were improperly excluded from the calculation of gross receipts/revenues, and WHEREAS, the law firms of Strasburger & Price, L L P and Bucek & Frank, L L P have filed suit agmnst TXU and Lone Star Gas on behalf of the City of Denton in the 393rd District Court in Denton County for delinquent franchise fees (TXU Franchise Litigation), and WHEREAS, a consolidated action by cities in the TXU service area seeking dehnquent franchise fees will reduce duplication of effort and the attendant legal and expert witness fees and court costs, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the City of Denton agrees to join with other similarly situated Texas cities in the TU/LONE STAR GAS systems m forming the Steenng Committee of Cities Participating in the TXU Franchise Litigation to pursue causes of action against Texas Utilities Company, Lone Star Gas Company and other entities associated with TXU to collect delinquent franchise fees SECTION 2 That the City of Denton agrees to contribute 50¢ for each m&vldual residmg within its corporate limits based on the 1990 U S Census (except for such portion of its population that may not be residing within the TU/Lone Star Gas service area) or $2,000, whichever is more, to underwrite the cost of legal and expert witness fees and related costs to be expended on behalf of the cities in this matter, 25¢ [or $1,000 if applicable] being due on or before October 31, 2000, and the other 25¢ [or $1000], if assessed, being due and payable on the date the Steenng Committee of Cities Participating in the TXU Franchise Litigation authorizes such assessment Provided, however, Denton's assessment will be reduced by multiplying 25¢ times its 1990 population times the ratio desired by dividing the total number of TXU electric customers by the total number of Denton electric customers and the total number of TXU Lone Star Gas customers by the total number of Denton gas customers SECTION 3 That Herbert L Prouty, C~ty Attorney for the City of Denton, or his designee shall be the City's primary contact and hmson ~n th~s matter and such md~wdual shall be ehglble to serve on "Steenng Committee of C~t~es Partmlpatmg ~n the TXU Franchise Lltlgatmn' as ~ts Treasurer Notmes to the C~ty should be addressed as follows Name/Title Herbert L Prout¥, C~ty Attorney C~ty/Address City of Denton, 215 E McKmne¥, Deuton, Texas 76201 Telephone (940) 349-7799 Fax (940) 382-7923 E-mml hlprout¥~cit¥o fdeuton corn SECTION 4 That the hmson named above ~s authorized to take those steps reasonable and necessary to comply with the intent of this ordinance and the hmson and the City Manager are authorized to make the expenditures reqmred by th~s ordinance SECTION 5 That th~s Ordinance shall become effecUve ~mmethately upon ~ts passage and approval PASSED AND APPROVED this the c'~ ~ day of ~f?~'-'.~./.,/ ,2000 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTO 'dNEY BY / Page 2 of 2