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Home My WebLink AboutORD 1993-033 . - . �� ORDINANCE NO. 93-33 . . ' � � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ' GRAPEVINE, TEXAS AMENDING THE EXISTING • FRANCHISE BE�WEEN THE CITY AND TEXAS UTILITIES ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT • CONSIDERATION; PROVIDING AN EFFECTIVE DATE; - ° PROVIDING FOR ACCEPTANCE BY TEXAS UTILITIES ELECTRIC COMPANY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW . WHEREAS, Texas Utilities Electric Company (hereinafter called "TU Electric") ' . is engaged in the business of providing electric utility service within the City and is using the public streets, alleys, grounds and rights-of-way within the City for that purpose under the terms of a franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by TU Electric; and WHEREAS, TU Electric has, pursuant to said franchise ordinance, been paying ` to the City a sum equal to three percent (3%) of its gross receipts from the residential, commercial, industrial, governmental and municipal sale of electric power �u� and energy within the City for the rights and privileges set forth in said franchise � ordinance and, in addition thereto, has reimbursed the City for its ratemaking expenses pursuant to Section 24 of the Public Utility Regulatory Act; and WHEREAS, the City and TU Electric desire to amend said franchise ordinance to provide for a different consideration to consist of a sum equal to four percent (4%) of its gross receipts from the residential, commercial, industrial, governmental and municipal sale of electric power and energy within the City, which different consideration includes, among other things, TU Electric's obligation to reimburse the City for its ratemaking and other regulatory expenses to be incurred by the City involving the regulation of TU Electric. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1 . The consideration payable by TU Electric for the rights and privileges granted to TU Electric by the franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TU Electric is hereby changed to be four percent (4%) of its gross receipts from the residential, commercial, � industrial, governmental and municipal sale of electric power and energy within the corporate limits of the City, said changed percentage to be applied to said gross receipts beginning on June 1, 1993, and being payable as spec�fied in said franchise �,e,,�, ordinance and based upon the same time periods as specified in said franchise ordinance and being payment for the said rights and privileges during the period specified in said franchise ordinance, said payment being in lieu of and shall be ��. accepted as payment for all of TU Electric's obligations to pay municipal charges, fees, rentals, pole rentals, wire taxes, inspection fees, easement taxes, franchise taxes, certain regulatory expenses under Section 24 of the Public Utility Regulatory Act or any similar or successor law, or other charges and taxes of every kind, except ad valorem taxes, sales and use taxes, and special taxes and assessments for public improvements. Section 2. TU Electric shall make a one-time payment hereunder for the purpose of making the changed consideration as specified in Section 1 hereof effective on June 1, 1993, without altering the payment dates specified in said franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TU Electric, said one-time payment being due and payable on October 15, 1993, after TU Electric's acceptance of this ordinance as provided in Section 6 hereof, and being a sum calculated as follows: (a) TU Electric shall determine the monthly average of its gross receipts from the residential, commercial, industrial, governmental and municipal sale of electric power and energy within the City during the period upon which the most recent franchise payment made to the City prior to June 1, 1993, was based; °� ° (b) the said monthly average of its said gross receipts shall be multiplied by 1 % (0.01); and (c) the product so calculated shall be multiplied by the number of whole months from June 1, 1993, through the last day of the last month of the period for which the most recent franchise payment made to the City prior to June 1, 1993, was made. Section 3. Notwithstanding anything to the contrary in Section 1 hereof, if TU Electric files general rate cases and the City incurs cumulative expenses, otherwise reimbursable by TU Electric under Section 24 of the Public Utility Regulatory Act or similar or successor law, in excess of S4 million, then in such event, TU Electric shall reimburse all of the expenses incurred by the City in connection with all general rate cases filed during the period of this agreement (ended fifteen (15) years from the effective date hereof) in excess of said 54 million. The term "general rate case" as used in this Section means a rate case initiated by TU Electric in which it seeks to increase its rates charged to a substantial number of its customer classes in the City and elsewhere in its system and in which TU Electric's overall revenues are ,� determined in setting such rates. City agrees to exercise reasonable best efforts, considering the facts and circumstances, to keep its expenses on average to under S 1,000,000 per general rate case. � 2 y a Section 4. Notwithstanding the provisions of Section 1 hereof, TU Electric will continue to reimburse the City's ratemaking expenses, if any, in connection with the appeal and any remand of Public Utility Commission of Texas Docket No. 9300 that �,R � are otherwise reimbursable under Section 24 of the Public Utility Regulatory Act, and will continue to reimburse the City's ratemaking expenses, if any, in connection with Public Utility Commission of Texas Docket No. 11735 that are otherwise reimbursable under Section 24 of the Public Utility Regulatory Act to the extent that said ratemaking expenses are incurred through the entry of the last action by the Public Utility Commission of Texas (i.e., the said Commission's order overruling the last ' motion for rehearing) in said Docket No. 11735; the City hereby agrees that any ratemaking expenses incurred in connection with said Docket No. 11735 that the City incurs on appeal of said order will be the City's sole responsibility and further agrees -- in the event that the City is a participant in the joint intervention of cities managed by the Steering Committee of TU Electric Service Area Cities intervening in Docket No. 11735, that the City decides to continue to participate with the Steering committee in such appeal of said order, and TU Electric is required to reimburse said Steering Committee for ratemaking expenses under Section 24 of the Public Utility ' Regulatory Act that are incurred on appeal of said order in Docket No. 11735 -- to reimburse TU Electric the City's share of reimbursable expenses related to said appeal ; and owed by TU Electric to said Steering Committee determined by the methodology chosen by the said Steering Committee (the City to notify TU Electric of the method so chosen by the Steering Committee prior to the submission of an invoice by the Steering Committee for the payment by TU Electric of said reimbursable expenses related to said appeal►. � .. I Section 5. Notwithstanding the provisions of Section 3 hereof, in the event that the City of Dallas incurs cumulative expenses in connection with general rate cases filed by TU Electric during the next fifteen (15) years in excess of S4 million and TU Electric reimburses the City of Dallas such excess, then, in that event, TU Electric will reimburse Grapevine its reasonable expenses actually incurred that are otherwise reimbursable under Section 24 of the Public Utility Regulatory Act, limited however, to an amount calculated in accordance with the following formula: A = [(B - 54,000,000) = B] x C where: A = The amount reimbursable to Grapevine under this ordinance; B = The total amount of expenses incurred by the City of Dallas during the term of TU Electric's current franchise with the City of Dallas in connection with general rate cases filed by TU Electric, which expenses _ would be reimbursable under Section 24 of the PURA except for the terms of said franchise, but excluding all such expenses incurred in connection with Public Utility Commission of Texas Dockets Nos. 9300 � and 11735; and 3 �� C = The total amount of expenses incurred by Grapevine during the term of TU Electric's current franchise with the City of Dallas in connection with general rate cases filed by TU Electric, which expenses �� would be reimbursable under Section 24 of the PURA except for the terms of this franchise amendment, but excluding all such expenses incurred in connection with Public Utility Commission of Texas Dockets Nos. 9300 and 11735. Section 6. In all respects, except as specifically and expressly amended by this ordinance, the said franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TU Electric shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided therein. Section 7. This ordinance shall take effect on September 16, 1993, upon TU Electric's written acceptance. TU Electric shall, within fifteen (15) days from the passage of this ordinance, file its written acceptance of this ordinance with the Office of the City Secretary in substantially the following form: To the Honorable Mayor and City Council: Texas Utilities Electric Company (TU Electric), acting by and through the undersigned authorized officer, hereby accepts, on this the day of `" , 1993, Ordinance No. amending the current franchise between the City and TU Electric. � r TEXAS UTILITIES ELECTRIC COMPANY By: President Section 7. It is hereby officially found and determined that the meeting at which this ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on first reading on this the 6th day of July , 1993. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on second and final reading on this the »th day of � August , 1993. w�r 4 �,� APPROVED: William D. Tat� Mayor ATTEST: Lin Huff City Secretary APPROVED AS TO FORM: �_ , John F. Boyle, Jr. �:;� City Attorney � � 5 ;�. .4 To the Honorable Mayor and City Council: Texas Utilities Electric Company (TU Electricl, acting by and through the undersigned authorized officer, hereby accepts, on this the 24th day of August , 1993, Ordinance No. 93-33 amending the current franchise between the City and TU Electric. TEXAS UTILITIES ELECTRIC COMPANY � � By: sr. vi�e President �,. . �:.� � 6 ; 4 � August 24, 1993 3 TUELECTRIC Terry R.Griffin Sr.Vice Presidenl TO THE MAYOR AND CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: The undersigned hereby accepts the terms of that certain franchise passed and adopted by the City Council of the City of Grapevine, Texas, by ordinance duly approved by the Mayor and attested by the City Secretary on August 17, 1993, same being, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS AMENDING THE EXISTING FRANCHISE BETWEEN THE CITY AND TEXAS UTILITIES ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY TEXAS UTILITIES ELECTRIC COMPANY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW." IN TESTIMONY WHEREOF, witness the corporate signature of Texas Utilities Electric �=; � Company by its duly authorized officer, this the 24th day of August, 1993. TEXAS UTILITIES ELECTRIC COMPANY �,,-� n � Te . fin Sr. Vice Pr ident Original.acceptance of anchise, of which the foregoing is a true copy, was filed in my office on the� day of , 1993, at�/'�'o'clock /� .m. ; � � � ��C' y ecretary� C of Grapevine, Texas �-• (CITY SEAL) � 1506 Commerce Street Dallas,Texas 75201 (214)698-3650