1999-472AN ORDINANCE GRANTING TO DENTON COUNTY ELECTRIC COOPERATIVE, INC,
DOING BUSINESS AS COSERV 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, Denton County Electric Cooperative, Inc, doing business as CoServ
Electric, has been using and occupying Public Raghts-of-Way in the City of Denton for a number
of years, including all of calendar year 1998, without a franchise therefor from the City, and
WHEREAS, by letter agreement dated June 16, 1999 ("Letter Agreement"), CoServ
Electric and the City agreed to interim terms and conditions governing CoServ Electnc's use and
occupancy of the Public Rights-of-Way until CoServ Electric and the City reached agreement on
a comprehensive franchise agreement/ordinance, and
WHEREAS, such Letter Agreement provided that the electric franchise to be granted to
CoServ Electric would have an effective date of no later than May 17, 1999, and
WHEREAS, the Caty of Denton has adopted Ordanance No 99-373 amen&ng the Caty of
Denton Code of Ordinances to provade uniform regulations to govern the use and occupancy of
Pubhc Rights-of-Way by prowders of Electric Utlhty Servace an the Caty, such provlsaons being
codafied as Seetaons 26-240, et seq, C~ty Code, and mcludang the reqmrement that such
prowders obtmn a franchase from the C~ty for such use and occupancy, and
WHEREAS, Sections 26-240, et seq, of the Caty Code apply to Denton County Electric
Cooperauve, Ine, doing business as CoServ Elecmc, and ars prows~on of Electric Utthty Servace
In the City, and reqmre Denton County Electric Cooperatave, Inc to obtmn a franchise from the
Caty, NOW, THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I DEFINITIONS
As used in thas ordinance, capatahzed terms shall have the defined meamngs set forth ~n
Or&nanee No 99-373, codafied as Sections 26-240, et seq, Caty of Denton Code of Ordinances,
and such definlUons are hereby adopted as ~s set forth fully here~n
SECTION II FRANCHISE GRANTED
(a) There as hereby GRANTED to Denton County Electric Cooperative, Inc, doing
busaness as CoServ Electric (hereanafter called "Grantee"), for the term often (10) years from the
effecuve date set forth m Section XII ofthas Ordinance, a Franchase to use and occupy the Pubhc
Rights-of-Way an order to construct, erect, own, suspend, anstall, extend, renew, repmr, mmntmn,
operate, and conduct ~n the Caty of Denton, Texas, (hereinafter referred to as "Caty"), a plant or
plants and poles, wares, papehnes, cables, underground condmts, manholes, fiber opuc cable for
ars own use, and all other faeflmes and eqmpment needed and necessary for the mmntenance and
operauon of an Electric UUhty System
2
(b) This Franchise does not grant to Grantee the right, privilege, or authority to
engage an any other business within the City other than the provision of Electric Utility Service,
as set forth an this Franchise Any addmonal services to be performed by Grantee in the City,
other than Electric Utility Services, shall not be included within this Franchise, but instead, shall
be the subject of a separate agreement or by an approprmte amendment to this Franchise
(c) All of Grantee's actavmes and occupation of the Public Pdghts-of-Way an the City
shall be governed by the provisions of Sectmns 26-240, et seq, City Code, as such provisions
may be amended from time to tame In the sole discretion of the City
(d) This Franchise supercedes, and takes the place of, the Letter Agreement dated
June 16, 1999, referenced an the preamble hereof Grantee and City agree that Ordinance No
99-373, codified as Sections 26-240, et seq, City Code, and this Franchise together constitute
the comprehensive franchise agreement/ordinance referenced in the Letter Agreement
SECTION III ADMINISTRATION OF FRANCHISE BY CITY
(a) The City Manager as the pnncapal City officer responsible for the administration
of this Franchise, and shall generally oversee and review the operations of Grantee under this
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 its Code of Ordinances, or by regulation or rule, or
by law, relating to the supervision and regulation of Grantee ~n the exercise of the rights and
privileges hereto conferred to Grantee The City Manager shall have the authority to make and
pubhsh, after written notice to those affected and after a heanng, 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 Utlhty Regulatory Act, as amended, and otherwise
3
(c) It shall be the right and duty of the Clty Manager and the governing body of the
C~ty at all t~mes to keep fully mformed as to all matters an connection w~th, or affecting the
constructmn, reconstruction, maintenance, operation, and repmr of the Elecme Utlhty System of
the Grantee, as well as ~ts accounting methods and procedures ~n connection therewith, the
conduct of the Grantee's busaness ~n the C~ty, and the Electrac Utlhty Service being provided by
Grantee m the C~ty
SECTION IV RECORDS, REPORTS, AND iNSPECTIONS
(a) The Grantee shall mmmmn ~ts books and records as prescribed ~n Section 26-249,
City Code
(b) Grantee, at Grantee's sole cost and expense and upon request by City, will
promptly provide cop~es of financial and operating reports filed w~th the Pubhc Utthty
Commission of Texas, the Federal Energy Regulatory Commxsslon, and the Secuntxes and
Exchange Commission, or their successor agencxes, ~n no event later than fifteen (15) days after
the recexpt of a request therefor from the City
(c) Grantee shall keep the City fully informed as to all matters in connection w~th or
affecting the construction, reconstruction, removal, mmntenance, operation, or repmr of
Grantee's facilities, ~ncludmg, w~thout hm~tat~on, all accounting methods and procedures used
by Grantee ~n determining the franchise fee mounts to be prod the C~ty
(d) Grantee shall prowde the Cxty, on an annual basis, a current chmn-of-command
orgamza~onal chart of Grantee showing all of ~ts officers, managers and supervisors, together
wxth thexr respective txtles, addresses and telephone numbers, who have the ultxmate
msponslbflxty for managing, operating, and mmntmmng Grantee's Electric Utility System m the
City
(e) The C~ty Manager, or his designee, shall have the right, at reasonable t~mes, to
respect the plant, eqmpment, and other property of the Grantee, and ~ts affihates, and to examine,
audit, and obtmn cop~es of the papers, books, accounts, documents, and other business records of
the Grantee and ~ts affihates, consistent w~th state law and ~n accordance wath the provisions of
Section 26-249, C~ty Code
(0 The C~ty shall retmn all of the ~nvest~gat~ve powers and other rights provided to
the C~ty by ~ts Charter and by state law
SECTION V COMPENSATION TO BE PAID TO THE CITY
(a) Grantee shall pay the C~ty an annual Franchise Fee as set forth ~n Section 26-242,
C~ty Code
(b) Grantee shall furnish to C~ty at the ume each quarterly payment of franchise fee ~s
made to Caty hereunder, a sufficiently detailed financial statement showing how the Gross
Revenues amount was arnved at and how the amount prod to the C~ty was determined, for such
quarter After Grantee amplements customer choice, the information prowded to the C~ty shall
~nd~cate the number of kilowatt hours of electricity dehvered by the Grantee ~n the C~ty
(e) W~th~n mnety (90) days after the effecUve date of this Franchise, Grantee shall
prowde mformataon to the C~ty
0) documenting the total number of kilowatt hours of electricity
dehvered by Grantee xn calendar year 1998 to all of Grantee's
retml customers whose consuming facilities' points of dehvery
were located w~th~n the C~ty's boundaries, and
(n) documenting Grantee's Gross Revenues (as defined in Section 26-
240, City Code) in calendar year 1998 derived from the provision
of Electric Utility Service within the City's boundaries
(d) The City shall compute the franchise fee that Grantee would have prod to the City
in calendar year 1998 at the rate of 4% of Grantee's Gross Revenues for 1998, as determined in
paragraph (c) above, and shall notify Grantee of the results of City's computation Grantee
agrees that the result of such computation is the amount due to the City for calendar year 1998,
in accordance with the provisions of {}33 008, PURA Grantee agrees that City will use this
amount to calculate Grantee's franchise fee per kilowatt hour, in accordance with {}33 008,
PURA By October 1, 2001, the City shall notify Grantee of the amount of the franchise fee set
forth in number of dollars per kilowatt hour Grantee agrees that such calculation is appropriate
and waives any right it may have to challenge or otherwise contest the calculation of the
franchise fee
(e) Grantee shall pay the kilowatt hour-based franchise fee instead of the franchise
fee based upon Grantee's Gross Revenues, commencing with service rendered by Grantee on and
after January 1, 2002, or commencing with service rendered by Grantee on and after the first day
of the first month following the effective date of Grantee's implementation of customer choice,
whichever is later
SECTION VI FRANCHISE AND OTHER VIOLATIONS
Upon evidence being received by the governing body of the City that a violation of this
Franchise Ordinance, or a City Charter provision, or an ordinance of the City lawfully regulating
Grantee in the furmshlng of servme hereunder is occurring, or has occurred, it shall at once cause
an lnvesllgatlon to be made by the City Manager or his designee Notme, penalties, and
6
procedures for ensunng comphance w~th th~s franchise shall be as provided ~n Sections 26-240,
et seq , City Code
SECTION VII NOTICES
(a) All notices, including communications and statements that are reqmred or
permitted under the terms of this Franchise, shall be in writing Service of a notme shall be
accomplished by hand-delivery, by registered or certified mai1, return receipt requested (postage
prepaid), or by reputable overnight delivery service All notices shall be effective upon the
receipt ofnotme by the intended recipient
(b) All notices shall be sent to the City and Grantee at the following addresses
CITY OF DENTON, TEXAS DENTON ELECTRIC COOPERATIVE, INC
City Manager d/b/a CoServ Electric
C~ty of Denton c/o Curtis TrIvitt, P E
215 E McKlnney Director of Engineering and Operations
Denton, Texas 76201 3501 FM 2181
Connth, Texas 76205
(c) The City and Grantee, from time to time, may designate a new address and/or
another designated officer for purposes of prowd~ng notice hereunder, by written notice to the
other party g~ven as provided here~n
SECTION VIII CONFORMITY TO THE CONSTITUTION, STATUTES, CHARTER
AND CITY CODE OF ORDINANCES
This Franchise ~s granted subject to all applicable provisions of the Constitution and laws
of the State of Texas, the Charter of the City of Denton, Texas, and the Denton Code of
Ordinances, together w~th any and all roles and regulations adopted thereunder This Franchise
shall in no way affect, abridge, or ~mpmr the rights, obligations, or remedies of the pames
provided for by the Pubhc Utlhty Regulatory Act of Texas, as amended
7
SECTION X GOVERNING LAW AND VENUE
(a) This Franchise shall be governed by and construed in accordance with the laws of
the State of Texas and the City Charter of the City of Denton, Texas
(b) Venue respecting any dispute arising hereunder shall exclusively lie in Denton
County, Texas
(c) For purposes of construction, 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 X INDEMNIFICATION
Grantee shall defend, lndemmfy and save whole and harmless the City and all of its
officers, officials, agents, employees and attorneys, against any and all claims, lawsuits,
judgments, costs and expenses for personal injury 0ncludlng death), property damage or other
harm for which recovery of damages is 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 hable act, or
omission by Grantee, its officers, agents, employees, subcontractors, affiliates and subsidiaries,
in the construction, mmntenance, operation, or repair of Grantee's Electric Utility System, or by
the conduct of Grantee's business in the City pursuant to this Franchise, except that the
indemnity provided for in this paragraph shall not apply to any liability resulting from the sole
negligence or fault of the City, its officers, officials, agents, employees, or separate contractors
In the event of joint and concurrent negligence or fault of both of the Grantee and the City,
responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the
laws of the State of Texas without, however, waiving any governmental immunity defense or
8
provision avmlable to the City under appheable Texas law, and w~thout wmwng any of the
defenses of the parties under applicable Texas law It ~s understood that ~t ~s not the ~mem~on of
the part~es hereto to create hablhty for the benefit of any third parties, but that th~s Franchise
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 XI NON-EXCLUSIVE FRANCHISE
The Franchise granted by this Ordinance ~s not exclumve Nothing comamed hereto shall
be construed so as to prevent the C~ty from granting other hke or similar rights, pnwleges, and
franchises to any other person, finn, corporation, or public utthty
SECTION XII EFFECTIVE DATE, ACCEPTANCE
Th~s ordinance shall take effect ~mmed~ately from and after ~ts passage, pubhcat~on,
acceptance by Grantee in accordance with the provisions of the Charter of the City of Demon,
Texas, and after Grantee deposits ~ts surety bond with the C~ty Finance D~rector, as reqmred by
Section 26-244, and ~t ~s accordingly SO ORDAINED Under the terms of the Letter
Agreement, Grantee's obhgations w~th regard to payment of compensation hereunder shall have
an effective date of May 17, 1999, and Grantee's first payment of franchise fees for the period of
May 17, 1999 through September 30, 1999, shall be due upon Grantee's acceptance hereof The
Franchise granted here~n shall continue for a term of ten (10) years from the effective date
SECTION XIII OPEN MEETING
It is hereby offimally found and detenmned that the meetings at which th~s ordxnance was
passed were open to the pubhc as reqmred by law, and that pubhc notice of the txme, place and
purpose of smd meetings was given as reqmred by law
JAC~LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
The City of Denton, Texas, acting here~n by its duly constituted authonttes, hereby
declares the foregoing Ordinance passed on first reading on the ~--~ day of
/~l/~mb~/~ , 1999, and passed on second rea&ng on the~ day of
/[/~l/~t" , 1999, and passed on third reading on the ~_ day of
~)~/~tI~,~d'~ , 1999, and.belllg~ finally effective as of the ~--~ day of
.
Jack IV~ar, MaYo~ - Mattk Bu~.g)s, C"'m:~d ~
R~e~, Qc~M~l~er M,ke C'o~hran, Council Membe
/Neff Durrance, Cou~ii Member Sandy Knstoferson,"Coun~l Member
The above and foregoing ordinance read, adopted on first rea&ng and passed to second rea&ng
by the following votes, this the a~d day of /I//)//g/73~g/~ ,1999, at a regular
session of the City Council
Jack Miller, Mayor, voting ~
Mark Burroughs, Council Member, voting ~
Rom Beasley, Council Member, voting ~
l0
Mike Cochran, Council Member, voting.
Neff Durrance, Council Member, votmg <:g/da
Sandy Knstoferson, Council Member, voting
Carl G Young, Sr, Council Member, votmg
The above and foregoing ordinance read, adopted on second reading and passed to third reading
by the following votes, this the /~---~ day of .~'~¥~Z/'/t~f , 1999, at a regular
session of the City Council
Jack Miller, Mayor, voting ~
Mark Burroughs, Council Member, voting
Rom Beasley, Council Member, voting
M~ke Cochran, Council Member, voting
Neff Durrance, Council Member, voting
Sandy Knstoferson, Council Member, voting
Carl G Young, Sr, Council Member, voting
The above and foregp, lng ordinance read, adopted on thard rea&ng and passed by the following
votes, th~s the ~7'~?~ day of ,~)~P~g/q~OP~ , 1999, at a regular session of the
City Coullcll
Jack Miller, Mayor, voting ___._ (II0'~ ~Ofe~-.~'~ ,f-bt" yo~)
Mark Burroughs, Council Member, voting
Rom Beasley, Council Member, voting
Mike Cochran, Council Member, voting
Nell Durrance, Council Member, voUng
Sandy Knstoferson, Council Member, votxng
Carl G Young, Sr, Council Member, votxng
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 Denton County Electric Cooperative, Inc, doing business as CoServ
Electric The same is now recorded as Ordinance Number qq-6t'gaY.~ in the Ordinance
Records of the City of Denton, Texas
WITNESS MY HAND this the '"/ day of ~ , 1999
(SEAL)
12
ACCEPTANCE
WHEREAS, the City Council of the City of Denton, Texas, did on the 7th day of
Decomber , 1999, enact an Ordinance entitled
AN ORDINANCE GRANTING TO DENTON COUNTY ELECTRIC COOPERATIVE, INC
DOING BUSINESS AS COSERV 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, smd Ordinance was on the 7th day of December ., 1999, duly
approved and subscribed by the Mayor of said City, and the seal of said City was thereto affixed
and attested to by the C~ty Secretary,
NOW, THEREFORE, Denton County Electmc Cooperative, Inc, doing business as
CoServ Electric, hereby in all respects ACCEPTS, APPROVES AND AGREES TO smd
Ordinance, and the same shall constitute and be a binding contractual obligation of Denton
County Electric Cooperative, Inc, doing bumness as CoServ Electric, and of the City, w~thout
waiver of any other remedy by Denton County Electric Cooperative, Inc, doing business as
CoServ Elecmc, or the City, and Denton County Electric Cooperative, Inc, doing business as
CoServ Elecmc, does hereby file this, ~ts written acceptance, with the City Secretary of the City
of Denton, Texas, in her office.
DATED this the 5th day of January , 2000
DENTON COUNTY ELECTRIC COOPERATIVE, INC,
doing business as COSERV ELECTRIC
ATTEST
Not Required
1060\08\991109 CoServ franchise 13
ACCEPTANCE FILED ~n the Office of the C~ty Secretary of the C~ty of Denton, Texas, th~s the
5th day of January ,2~00
~nn~[~r ~}~ters, Cl~y Secretary
14
3501 FM 2181
Corinth, Texas 76205
Metro 817-430-1195
FAX 940-497-6525
An A.~fihate of Denton County Electric 800-274-4014
January 5, 2000
Mr Michael S Copeland .e,l.l~1-~ ~.~ ~ ~ ~] I~.~j~h~
Assistant Ctty Attorney ~ 0 ~ ~
C~ty of Denton
215 East McK~ey Cl~ g~¢¢~
Denton, Texas 76201
Dear Mr Copeland
As reqmred by the Ctty of Denton Charier, enclosed are the electric franchise ordinance
(Ordinance No 99-472) between the City of Denton and CoSe~ Elecmc and two original
counteCans of the Acceptance executed by CoSem Also, as you requested, CoSe~ confi~s
that ~t will pay the newspaper cost for pubhcaUon of the text of the ordinance according to
Section 13 01 of the Ctty of Denton Charier Please fo~ard the mvotce for these costs to my
attentmn
CoSe~ has entered into thts franchise based on the understanding that franchise fees wall be
calculated ~n the sine m~er as previously calculated More specifically, the franchise fees
will be calculated based on the revenues received by CoSe~ from the sales of electnctty, net of
customer crc&ts, to customers wtthm the co¢orate hmlts of the C~ty of Denton These revenues
do not include revenue billed but not received, hne extenston charges m the fo~ of one-nme
payments or monthly facdmes ch~ges, taxes, revenue from materials, eqmpment or apphance
sales, principal an~or tnterest payments on amounts loaned by CoSec, or m~scellaneous fees
such as co~ect or d~sco~ect fees, depostts, returned check fees, meter test fees, new account
fees, delinquent charges, tampering charges, and membership fees No franchtse fees on these
excluded revenues are included m our electric rates nor surcharged to Cay of Denton customers
The foregoing ts conststent w~th the franchise fee calculations m all of the other c~ttes ~n which
we se~me electric customers
During our negottaUon of the recently adopted Ordinance No 99-373, the Cay of Denton
originally requested language that ~ncluded some of these excluded revenues m the defimtmn of
"Gross Revenues" CoSe~ objected to that language and ~t was deleted prior to the adopuon of
such ordinance Therefore, we read Ordm~ce No 99-373 to be conststent w~th our
understandmg as to the calculation of fr~ch~se fees as described m the prior paragraph of th~s
letter If the C~ty of Denton d~sagrees, please so notify me w~thin seven days from the receipt of
this letter Othe~lse, please return one ~lly executed original of the franchise ordinance to me
Also, CoServ requests that Section VII(b) of the franchise ordinance be revised to show the
following nonce lnformaUon for CoServ
DENTON COUNTY ELECTRIC COOPERATIVE, INC
d/b/a CoScrv Electric
c/o Curtis Tnvltt, P E
Semor V~ce President - Energy Services
7701 S Stemmons Freeway
Corinth, Texas 75065
If the ordinance cannot be so revised, please allow th~s letter to serve as notice pursuant to
Section VII(c) of the franchise ordinance of the new notice address for CoServ
Please call ff you have any questions
Sincerely,
Curtis TrtvItt, P E
Senior Vice President - Energy Services
Ctty Attorney's Offtce
Ctty of Denton, Texas
~ 215 East McKmney
Denton, Texas 76201
(940) 349-8333
CITY OF DENTON, TEXAS Fax (940) 382-7923
February 17, 2000 [BY TELECOPY (940) 497-6525]
Curtis Tmqtt, P E
Semor Vice President - Energy Servmes
CoServ Electric
7701 South Stemmons Freeway
Connth, Texas 75065
Re Acceptance and Filing of C~ty of Denton/CoServ Electric Franchise Ordinance
Ordinance No 99-472
Pubhcatmn of Franchise Ordinance m the Denton Record Chromcle
Response to CoServ Electric Letter of January 5, 2000
Dear Mr Tnwtt
Congratulattons on your promotton to Semor Vine Prestdent- Energy Servmes at CoServ Elec-
tnc~
I confirm receipt of your letter dated January 5, 2000 regarding CoServ's acceptance of the
above electric franchise ordinance, and am regarding January 5, 2000 as CoServ's acceptance
date of the above-referenced ordtnance, per our telephone dmcuss~on of thru morning W~th your
permission, I have inserted January 5, 2000 as the date tn the "Acceptance" page of the ordi-
nance prewously s~gned m duphcate by Mr McGmms
I have noted your comments and statements expressed ~n paragraphs 2 and 3 of your January 5,
2000 letter to me regarding CoServ's understanding and behef that the franchise fees will be cal-
culated as stated there~n and m accordance w~th the Electric right-of-way and regulatory ordi-
nance recently passed by the C~ty Council as Ordmance No 99-373 tn October 1999 I have d~s-
cussed these points w~th Sharon Mays, D~rector, DME, and we do not disagree w~th you on the
pmnts made
S~mply stated, the prows~ons of Sections I and V (a) of Ordinance No 99-472 mean what they
say, and the "gross revenues" reqmrement ts found tn Section 26-242 of the Denton Code of Or-
dinances, and the defimt~on of"gross revenues" and "electric utthty service" are apphcable as set
forth tn Section 26-240, subsectmns (f) and (d), respectively
Thts ~s also to confirm that the C~ty's electric right-of-way regulatory ordtnance, bmng Ordt-
nance No 99-373 was recently re-enacted by the Council on February 1, 2000 as Ordinance No
2000-041 The re-enacted ordinance makes no substanttve changes to the previous ordtnance,
and was done to rectify and make several techmcal correcttons to Ordtnance No 99-373 I wtll
send you a true and correct copy of the new electric right-of-way regulatory ordtnance at the t~me
that I transmit a conformed original of the franchise ordtnance to you
"Ded, cated to Qual~t~ Serv,c,"
Curtis Trivet P E
February 17, 2000
Page 2
I have attached Mr McGlnms' two identical Acceptance pages to both original ordinances and
have filed them with the City Secretary on this date Also, as I discussed with you dunng our
phone call earlier today, I have taken the liberty, with your permission, to correct the page refer-
ences at the bottom of each page of the ordinance to reflect the correct page numbers Once I
have received CoServ's original conformed ordinance back from the City Secretary, I will
transmit it to you immediately I understand from our telephone conversation, that upon your
receipt of the ordinance, that you will transmit to the City the first check in payment of francinse
fees provided for under smd ordinance
The three steps referenced in my letter to you dated December 13, 1999 that are required by the
City's Charter, Article XIII, Sec 13 01[c] (and restated below) to make the francinse ordinance
effective, have now occurred, and the electric franchise ordinance is now effective, as of January
5, 2000
1 Thirty (30) days have passed after final passage of the franchise ordinance on December 7,
1999, and
2 The full text of the ordinance has been published once each week for three (3) consecutive
weeks (on December 20, 1999, December 27, 1999, and on January 3, 2000 in the Denton
Record Chronicle. the official newspaper published in the City of Denton) and I understand
that CoServ Electric has received confirmation of such publication, and notice of the balance
due, directly from the Denton Record Chronicle and that CoServ will process tins item for
payment, and
3 The franchise ordinance has been accepted in writing by Mr McGmnls, a duly-authorized
officer of CoServ Electric, and has thereafter been filed by me, with the City Secretary
Tins is also to confirm that the City has noted in page 2 of your letter of January 5, 2000, that
certain notice information needs to be changed I have provided the City Secretary's office with
a copy of your letter herewith, with instructions to note that the information respecting notice to
CoServ Electric has changed effective as of January 5, 2000, as permitted by Section VII (b) of
the electric francinse ordinance, being Ordinance No 99-472 We believe that allowing your
letter to serve as notice of the change is far more efficient than revising or re-enacting the ordi-
nance
We are pleased that this franchise ordinance m now a reality between the City and CoServ Elec-
tric, and appreciate your cooperation in this process Should you have any questions or com-
ments regardmg tins matter, please call me at (940) 349-8158, or Ms Jane Pachardson, Assistant
City Secretary, at (940) 349-8304
Sincerely, ~ ^
Michael S Cdl~elanOc
Assistant City Attorney
MSC mc
Enclosure
Curtis Tnvet P E
February 17, 2000
Page 3
cc Mxchael W Jez, City Manager
Herbert L Prouty, City Attorney
Kathy DuBose, Assistant City Manager for Finance
Howard Martin, Assistant City Manager for Utilities
~eOn Mays, Director, DME
Pdchardson, Assistant City Secretary (w/copy of January 5, 2000 CoServ Electric
letter)
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STATE OF TEXAS §
COUNTY OF DENTON §
AGREEMENT PERTAINING TO THE MUNICIPAL BOUNDARIES OF THE CITY OF
DENTON, TEXAS AS THEY EXISTED ON FEBRUARY 1, 1999
_~,Lr?~HIS AGREEMENT is made and entered into as of the ~ day of
~/~(.40b~] , 1999, by and between the C~ty of Denton, Texas, a Texas
Manlcipal corPoration, w~th its pnnc~pal offices at 215 East McKmney Street, Denton, Texas
76201 (hereafter "Denton"), and Denton County Electric Cooperative, Inc, dotng business as
CoServ Electric, with ~ts pnnc~pal offices at 7701 South Stemmons, Connth, Texas 75065
(hereafter "CoServ"), the part~es acting hereto, by and through their respectxve duly-authorized
officmls and representatives
WITNESSETH, that m constderat~on of the covenants and agreements hereto contatned,
the parttes hereto do mutually AGREE as follows
1 Th~s Agreement pertains solely to the part~es hereto agreeing that the Map attached
hereto, s~gned and dated by representatives of both of the parhes hereto, accurately
depicts and represents the corporate hm~ts of the C~ty of Denton, Texas as they existed on
February 1, 1999 Th~s Agreement pertains to no other matters
2 Denton and CoServ, ~n the ~nterests of comtty, as well as to avoxd needless expense and
delay, have entered ~nto th~s Agreement
3 Denton, at CoServ's specific instance and request, has prepared a "Supporting Affidawt"
which ~s attached hereto and incorporated herewith by reference, which sets forth the
manner ~n which the attached map was prepared by Denton ctty staff ~n the ordinary
course of bus~ness w~th personal knowledge of the perttnent facts CoServ has
commumcated to Denton, that because of the nature of the preparation of the Map
attached hereto, as well as the nature of the annexation ~nformatlon ~ncluded ~n the
preparation of the Map, that ~t ~ntends to place s~gmficant rehance upon the Map m
entenng ~nto th~s Agreement with Denton Denton agrees that CoServ may rely on the
attached Map, and states that city staff carefully prepared the Map Denton has
commumcated to CoServ that CoServ ~s welcome to make ~ts own determination of the
Ctty hm~ts of Denton as of February 1, 1999, and that Denton wdl make ~ts maps, records
and pertinent c~ty staff avmlable to CoServ, should ~t desire to make ~ts own
determmatmn, which course of actmn Denton recommends
4 The part~es, each by their respective duly-authorized representative, by subscribing th~s
Agreement declare and agree they have carefully rewewed and examtned the attached
Map, that they have each s~gned and dated the attached Map, and that satd Map
accurately depicts and represents the corporate hm~ts of the Ctty of Denton, Texas as they
existed on February 1, 1999
IN WITNESS WHEREOF, the Cxty of Denton, Texas has executed th~s Agreement m
two (2) original counterparts, by and through its duly authorized Cay Manager, and CoServ has
executed thxs Agreekn~qnt by and .through ~ts duly-authorized undersigned officer, on th~s the
/~-~]0 dayof~.~:~,~, 1999
"DENTON"
CITY OF DENTON, TEXAS
A Texas Mumc~pal Corporation
By ~a~0'&/
~vl'~c~ael W/Jez
CIty ManagerU
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
"COSERV"
DENTON COUNTY ELECTRIC
COOPERATIVE, INC, a Corporation,
dmng bus~ness as COSERV ELECTRIC
Bill McG~llnls
Chief Executive Officer
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ATTEST
By
APPROVED AS TO LEGAL FORM
By
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THE STATE OF TEXAS §
COUNTY OF DENTON §
SUPPORTING AFFIDAVIT
BEFORE ME, the tmdersagned Notary Pubhc an and for the State of Texas,
appeared GLENN FISHER, who after being duly sworn by me, stated upon has oath the
following
1 I am over the age of e~ghteen (18) years and am competent to make thas
Supporting Affidavat
2 I am employed by the Caty of Denton, Texas My Utle and posaUon ~s that of
"UUhty Servace Coordanator" with Denton Mumcapal Electric My bus~ness
address is 901-A Texas Street, Denton, Texas 76201
3 I have personal knowledge of the facts stated hennn
4 I oversaw preparaUon of the Map of the Caty of Denton's Mumc~pal C~ty Llnnts
as of February 1, 1999, whach ~s attached to the "Agreement Perta~mng To The
Mtmacipal Boundaries of the Caty of Denton, Texas As They Existed on February
1, 1999," ("Boundary Agreement") and I have carefully examaned and revaewed
the same
5 In the course of my work for the Ctty, I am famlhar wath the present Pubhc
Utflataes Commassaon electric uuhty certification map concerning the City of
Denton, Texas, and those areas within the City of Denton whach are s~ngly,
doubly, and triply-certificated as to the prowsaon of electric service to residents of
the C~ty
6 In prepanng the Map, I communicated wtth several employees of the C~ty of
Denton's Planmng Department m order to determine those annexaUons and
&sannexat~ons whach have recently occurred, so that the Map prepared would not
reflect any annexataons or dasannexauons taking place ~n the Caty after February
1, 1999
7 The City keeps a current map of ~ts city hmits an the regular course of business,
and at ~s an the regular course of business that the Caty keeps and maintains such
map Changes or revaslons to that map are made, as annexauons occur, by city
employees wath personal knowledge of the facts involved The city hm~ts map ~s
peno&cally updated at the t, me, or shortly after the time the C~ty annexes or
dasannexes an area
8 The map of the city hmlts whmh I oversaw the preparatxon of, reflects the cxty
hm~ts of the City of Denton, Texas and was created under my supervision and
control, by taking the current city map of Denton, Texas, and then removing all
annexations and dxsannexatxons that took place after February 1, 1999
9 I have carefully rewewed the Map and state, to the best of my knowledge and
behef, that the Map attached to the Boundary Agreement correctly and accurately
depicts and represents the mty hm~ts of the C~ty of Denton, Texas on February 1,
1999
GLENN FISHE~, ~ffi'ant
SWORN TO AND SUBSCRIBED BEFORE ME, the underslgned~N..~otary Pubhc
~n grd.~o~th¢ State of Texas, by GLENN FISHER on this the ~ day of
(r../t~..~_)~_ ~L. , 1999 '
Notary Pubhc in and for the State of
Texas
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