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HomeMy WebLinkAbout1738 06-13-2006ORDINANCE NO. 1738 AN ORDINANCE AMENDING EXISTING FRANCHISE ORDINANCE NO. 1658 BETWEEN THE CITY OF EULESS AND TXU ELECTRIC DELIVERY COMPANY, A TEXAS CORPORATION, ITS SUCCESSORS AND ASSIGNS, TO PROVIDE FOR A DIFFERENT PAYMENT SCHEDULE; PROVIDING AN EXTENSION OF THE FRANCHISE TERM; PROVIDING FOR TXU ELECTRIC DELIVERY ACCEPTANCE; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, TXU Electric Delivery Company, (hereinafter called "Company") is engaged in the business of providing electric utility service within the City of Euless, Texas (hereinafter called "City "), and is using the public 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 Company; and WHEREAS, pursuant to Agreement to Resolve Outstanding Franchise Issues dated January 27, 2006, the City has requested and Company has agreed to amend said franchise ordinance to provide for a different payment schedule and an extension of the term; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS: SECTION 1 The franchise between the City and Company is amended as follows: A. A final annual payment was made on or before May 1, 2006, based on each kilowatt hour of electricity delivered by Company during the twelve- month period ending March 31, 2006, to each retail customer whose consuming facility's point of delivery is located within the City's municipal boundaries. This payment was for the rights and privileges, granted under the franchise for the twelve- month period May 1, 2006 — April 30, 2007. Effective August 1, 2006, the annual prospective payment schedule is hereby changed to a quarterly prospective schedule as follows: Payment Due Date Basis Period Privilege Period (Following Year) August 1 Apr. 1 — June 30 May 1 — July 31 November 1 July 1 — Sept. 30 Aug. 1 — Oct. 31 February 1 Oct. 1 — Dec. 31 Nov. 1 — Jan. 31 May 1 Jan. 1 — Mar. 31 Feb. 1 — Apr. 30 The first quarterly payment will be due and payable on or before August 1, 2006, based on the period beginning April 1, 2006, and ending June 30, 2006, for the rights and privileges granted under the franchise during the period May 1, 2007, and ending July 31, 2007. If this franchise amendment is not effective prior to the first quarterly payment date, Company will pay any quarterly payments due within thirty (30) days of the effective date of this amendment. Subsequent payments will be made on a quarterly basis as provided in the above schedule. The final payment under this Franchise will be made on or before May 1, 2024, based on the period beginning January 1, 2024, and ending March 31, 2024, for the rights and privileges beginning February 1, 2025, and ending April 30, 2025. After the final payment date of May 1, 2024, Company may continue to make additional quarterly payments in accordance with the above schedule. City acknowledges that such continued payments will correspond to privilege periods that extend beyond the term of this franchise and that such continued payments will be recognized in any subsequent franchise agreement as full payment for the relevant quarterly periods; and B. The term of the franchise is hereby extended for an additional five years to expire on April 30, 2025. SECTION 2 In all respects, except as specifically and expressly amended by this ordinance, Ordinance No. 1658 heretofore duly passed by the governing body of the City and duly accepted by Company shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided herein. SECTION 3 This ordinance shall take effect thirty (30) days from and after its final passage and Company's acceptance. Company 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. SECTION 4 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. Ordinance No. 1738, Page 2 of 3 PRESENTED AND APPROVED ON FIRST READING at a regular meeting of the Euless City Council on the 13th day of June, 2006, by a vote of 7 ayes, 0 nays, and 0 abstentions. PRESENTED AND APPROVED ON SECOND AND FINAL READING at a regular meeting of the Euless City Council on the 15th day of August, 2006, by a vote of 7 ayes, 0 nays, and _Q_ abstentions. APPROVED: Mary Lib SdAeh, Mayor ATTEST: n Crim, RMC, City Secretary APPROVED AS TO FORM: :•• kyj III i M.M. rer, win WT I • Ordinance No. 1738, Page 3 of 3