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HomeMy WebLinkAboutORD 2002-091 ORDINANCE NO. 2002-91 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AMENDING THE EXISTING ELECTRIC FRANCHISE BETWEEN THE CITY OF GRAPEVINE, TEXAS AND ONCOR ELECTRIC DELIVERY COMPANY TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDING FOR ACCEPTANCE BY ONCOR ELECTRIC DELIVERY COMPANY; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Oncor Electric Delivery Company, successor in interest to TXU Electric Company (hereinafter called "Oncor") is engaged in the business of providing electric utility service within the City of Grapevine, Texas (hereinafter called "City"), and is using the public streets, alleys, grounds and rights-of-ways 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 Oncor; and, WHEREAS, the City and Oncor desire to amend said franchise ordinance to provide for a different consideration. NOW, THEREFORE, BE IT ORDAlNED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TARRANT COUNTY, TEXAS, THAT: Section 1. The existing electric franchise ordinance between the City of Grapevine, Texas, and Oncor Electric Delivery Company successor to the transmission and distribution assets of Texas Utilities Electric Company, Ordinance No. 60-12 as amended by Ordinance No. 93-33 and Ordinance No. 2001-85, is hereby amended to read as follows: Amendment 2002: A. Effective January 1, 2002, the franchise fee due from Oncor shall be a sum comprised of the following: (1) a charge, as authorized by Section 33.008(b) of PURA, based on each kilowatt hour of electricity delivered by Oncor to each retail customer whose consuming facility's point of delivery is located within the City's municipal boundaries and as specified by Oncor to the City by letter dated January 21, 2002. ��. .. (a) The franchise fee due pursuant to Section 33.008(b) of PURA shall be payable in accordance with the existing electric franchise Ordinance No. 60-12 and " N Ordinance No. 93-33 and Ordinance No. 2001-85; and (2) a sum equal to four percent (4%) of gross revenues received by Oncor from services identified in its "Tariff for Retail Delivery Service", Section 6.1.2, "Discretionary Service Charges," items DD1 through DD24, that are for the account or benefit of an end-use retail electric consumer. (a) The franchise fee amounts based on "Discretionary Service Charges" shall be calculated on an annual calendar year basis, i.e., from January 1 through December 31 of each calendar year. (b) The franchise fee amounts that are due based on "Discretionary Service Charges" shall be paid at least once annually on or before April 30 each year based on the total "Discretionary Service Charges" received during the preceding calendar year. (c) Oncor shall pay franchise payments to the City based � on the "Discretionary Service Charges" as set forth herein beginning January 1, 2003. B. Oncor Franchise Fee Recovery Tariff (1) Oncor may file a tariff amendment(s) to provide for the recovery of the franchise fee on Discretionary Service Charges. (2) City agrees (i) to the extent the City acts as regulatory authority, to adopt and approve that portion of any tariff which provides for 100% recovery of the franchise fee on Discretionary Service Charges; (ii) in the event the City intervenes in any regulatory proceeding before a federal or state agency in which the recovery of the franchise fees on such Discretionary Service Charges is an issue, the City will take an affirmative position supporting the 100°/a recovery of such franchise fees by Oncor and; (iii) in the event of an appeal of any such regulatory proceeding in which the City has intervened, the City will take an affirmative position in any such appeals in support of the 100% recovery of such franchise fees by Oncor. ORD. NO. 2002-91 2 (3) City agrees that it will take no action, nor cause any other person or entity to take any action, to prohibit the recovery of such franchise fees by Oncor. Section 2. In all respects, except as specifically and expressly amended by this ordinance, the existing effective franchise ordinance, Ordinance No. 60-12 as amended by Ordinance No. 93-33 and Ordinance No. 2001-85, heretofore duly passed by the governing body of the City and duly accepted by Oncor shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided therein. Section 3. This ordinance shall take effect upon its final passage and Oncor's acceptance. Oncor shall, within thirty (30) 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: Oncor Electric Delivery Company, acting by and through the undersigned authorized officer, hereby accepts in all respects, on this the� day of `�,�ce►���� , 20 02; Ordinance No. o?Oo2- q/ amending the current electric franchise between ,, , the City and Oncor and the same shall constitute and be a binding contractual obligation of Oncor and the City. Oncor Electric Delivery Company By � Vice President Section 4. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance, or the ordinances of the City, as amended hereby, be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance or the ordinances of the City, as amended hereby, which shall remain in full force and effect. Section 5. All ordinances of the City of Grapevine, Tarrant County, Texas, in conflict with the provisions of this ordinance be, and the same are hereby, repealed; provided, however that all other provisions of said ordinances not in conflict with the provisions of this ordinance shall remain in full force and effect. ORD. NO. 2002-91 3 Section 6. This ordinance shall take effect immediately from and after its passage and publication in accordance with its provisions of the Charter of the City of Grapevine, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, on this the 3rd day of December, 2002. APPROVED: VVilliam D. Tate Mayor APPROVED AS TO FORM: Lin a Huff City Secretary ATTEST: `�---_.. c�-- John F. Boyle, J . City Attorney ;;�;.,,: ORD. NO. 2002-91 4