HomeMy WebLinkAboutRES 2000-058 RESOLUTION NO. 2000-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AUTHORIZING THE CITY MANAGER
TO ENTER INTO AN AGREEMENT WITH TXU GAS AND
TXU ELECTRIC COMPANIES FOR THE PURPOSE OF A
CLARIFYING FRANCHISE FEE PAYMENTS AND REVENUE
CALCULATIONS AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City of Grapevine, Texas has previously granted electric and gas
franchises to TXU Gas and TXU Electric Companies; and
WHEREAS, to ensure the adequate payment and calculation of revenue and
franchise fee payments, TXU Gas Company and TXU Electric Company and the City of
Grapevine, Texas, desire to enter into the Agreement attached hereto as "Exhibit A".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all matters stated in the above preamble are true and correct and
are incorporated herein as if copied in their entirety.
Section 2. That the City Manager of the City of Grapevine, Texas is authorized
to enter into a local agreement with TXU Gas Company and TXU Electric Company, a
copy of said agreement is attached hereto as Exhibit "A".
Section 3. That this resolution shall take effect from and after the date of its
passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 17th day of October, 2000.
APPROVED:
William D. Tate
Mayor
ATTEST:
Linda Huff i
City Secretary
APPROVED AS TO FORM:
Matthew Boyle
City Attorney
RES. NO. 2000-58 2
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:t-16-00 10:54am From—Boyle & Lowry 9720307105 7-307 P.003/003 F-133
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DATE
City Manager EXHIBIT TO 4.61.agfia.:g.l.
Page ...L.... 0f
, Texas
Re: City of Denton v. TXU Gas Company and TXU Electric Company
Dear City Manager:
As you are aware, the City of Denton has filed a lawsuit against TXU Electric (formerly Texas
Utilities Electric Company)and TXU Gas(formerly Lone Star Gas Company)asserting that various categories
of revenue should have been included in the revenue on which TXU Electric and TXU Gas franchise fee
payments are calculated. Because we at TXU Electric and TXU Gas strongly believe we have properly
calculated the franchise fee payments made to Denton,as well as all of the other cities in our service areas,and
have included all of the revenue that is to be included under the franchise fee agreements with the City of
Denton,TXU Electric and TXU Gas intend to vigorously defend the lawsuit being pursued by Denton.
We are aware that your City has been solicited by Denton to join the litigation and also to assert claims
against TXU Electric and TXU Gas. We at TXU Electric and TXU Gas want you to l.-now that we do not
believe that you need to bring a lawsuit with regard to this issue. It is the position of TXU Electric and TXU
Gas that, if there is a final judgment holding that additional categories of revenue should have been included
in the Denton franchise fee calculation or a settlement in which TXU Electric arid TXU Gas agree to include
additional categories of revenue,TXU Electric and TXU Gas will,if agreed to by your City,apply that same
standard established in the City of Denton's lawsuit for the same period of time to the calculation of franchise
fee payments to your City, and provide the same benefits to your City that it would have received if it had
intervened in the litigation referenced herein.
These assurances and agreement are given in consideration of your City's agreement not to participate
as a party in any litigation against TXU Electric and/or TXU Gas related to the calculation of past franchise
fees.
The undersigned has the corporate authority to bind TXU Electric and TXU Gas to the agreements
contained herein. If this letter accurately sets forth our agreement,please sign in the place provided below.
We further understand that the City will take all action necessary to effect this agreement,including the passage
of an appropriate resolution ratifying this agreement.
Sincerely,
TXU
APPROVED AND AGREED:
City of
By:
Mayor or City Manager
Date: