0587 ORDINANCE NO_ ~"0177
AN ORDINANCE AMENDING ORDINANCE NO. 4 OF THE C1TY OF
SOUTHLAKE, AS AMENDED, GRANTING A FRANCHISE TO TEXAS
UTILITIES ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT
CONSIDERATION; PROVIDING AN EFFECTIVE DATE; PROVIDlblG
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 of Southlake
(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 Ordinance No. 4 of the City, adopted on
November 12, 1956, 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 revenues received from sales of electric
energy by TU Electric from its residential and commercial business within the City for the rights
and privileges set forth in said franchise ordinance and, in addition thereto, has reimbursed the
City tbr 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
revenues from the sales of electric energy by TU Electric from ils residential and commercial
business within the City which different consideration includes, among other things, TU
Elec~fic'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 SOUTHLAKE,
TEXAS'
TEXAS 0TILITIES ELECTRIC COMPANY FRANCHISE AMENDMENT
PAGE 1
SECTION I_ The consideration payable by TU Electric for the rights and privileges
granted to TU Electric by Ordinance No. 4 of this City adopted on November 12, 1956, and
duly accepted by TU Electric is hereby changed to be ibur percent (4%) of its gross revenues
from the sales of electric energy by TU Electric from its residential and commercial business
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 specified in said franchise 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.
SECTIOlq 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 Ordinance No. 4, said one-time payment being
due and payable thirty (30) days 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 revenues from the sales of electric energy by TU Electric from
residential and commercial business within the corporate limits of the City during the period
upon which the most recent franchise payment made to the City prior to lune 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
TEXAS UTILITIES ELECTRIC COMPANY FRANCHISE AMENDMENT
PAGE 2
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 I, 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 TEl Electric under Section 24 of the Public Utility Regulatory Act or similar or successor law,
in excess of $4 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 ended fifteen
(15) years from the effective date hereof in excess of said $4 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 $1,000,000 per general rate case.
SECTION 4_ Notwithstanding the provisions of Section I hereof, TU Electric will
continue to reimburse the City's ralemaking expenses, if any, in connection with the appeal and
any remand of Public Utility Commission of Texas Docket No. 9300 that are otherwise
reimbursable under Section 24 ot' 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
TEXAS UTILITIES ELECTRIC COMPANY FRANCHISE AMENDMENT
PAGE 3
on appeal of said order will be the City's sole responsibility and further agrees -- in the events
that the City is a participant in the joint intervention of cities managed by the Steering Committee
of Ttl 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 lhe 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 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).
SECTION 5_ In all respects, except as specifically and expressly amended by this
ordinance, Ordinance No. 4 shall remain in full force and effect according to its terms until said
franchise ordinance terminates as provided therein.
SECTION 6. This ordinance shall take effect from and after its final passage and
TU Electric's acceptance. TU Electric shall, within fifteen (15) days from the final passage of
this ordinance, file its written acceptance of this ordinance with the Office of the City Secretary
in substantially the following l~)rm:
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 9TU day of
~_~3_UgT , 1993, Ordinance No. 587 amending the current franchise
between the City and TU Electric.
TEXAS UTILITIES EL.E,CT, RIC COMPANY
By: ~ ~.~-.~.,,
SENI0I~VICE PRESIDEWr
TEXAS UTILITIES ELECTRIC COMPANY FRANCHISE AMENDMENT
PAGE 4
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 ON FIRST READING this the 4__ day of
,,,","':' T H, "-":',,,
~: :~
A FTEST a ~ '-. ."
Ci~ Secrem~
PASSED ON SECOND READING this the
,1993.
day of ~~- , 1993.
APPROVED AS TO FORM AND I,EGAI.ITY:
City Attorney
TEXAS UTILITIES ELECTRIC COMPANY FRANCHISE AMENDMENT
PAGE 5
IlIELECTRIC
August 9, 1993
Terry R. Griffin
TO THE MAYOR AND CITY COUNCIL
OF THE CITY OF SOUTHLAKE, TEXAS:
The undersigned hereby accepts the terms of that certain franchise passed and adopted
by the City Council of the City of Southlake, Texas, by ordinance duly approved by the Mayor
and attested by the City Secretary on August 3, 1993, same being, "AN ORDINANCE
AMENDING ORDINANCE NO. 4 OF THE CITY OF SOUTHLAKE, AS AMENDED,
GRANTING A FRANCHISE TO 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 9th day of August, 1993.
TEXAS UTILITIES ELECTRIC COMPANY
Original acceptance o~franchise~ of which t,h,e foregoing is a tree copy, was filed in my office
on the [(v day of [fgL/Iz..~'~-~, 1993, at3 ?)C:o'clock .0 ' .m.
City Secretary
City of Southlake, Texas
(CITY SEAL)
1506 Commerce Street Dallas, Texas 75201 (214) 698-3650
Fort Worth Star-telegram
400 W.SEVENTH STREET•FORT WORTH,TEXAS 76102
STATE OF TEXAS
ty of Tarrant
Before me, a Notary Public in and for said County and State , this day
personally appeared RITA CORONA Billing Specialist for the Fort Worth
Star-Telegram, published by the Star-Telegram Inc. at Fort Worth, in Tarrant
County, Texas ; and who, after being duly sworn, did depose and say that the
following clipping of an advertisement was published in the above named
paper on the following dates :
TOTAL
DATE 1 AD INVOICE NO. DESCRIPTION AD SIZE w,,F,ONE RATE AMOUNT
L�_
AUG 06 2519180 CL . 358 1X314L 314 . 43 135. 02
aug6
P . O . # ORD587
RDIANC ENO.587 —_
TFNfE R TAN E A END- SECTION 3.Notwithstanding
INGOE$INyA c N 4OF_ anything to the contrary In
►( q$ pu18�{ Section I hereof,ItTU Electric
LGRANEfIN( q FRANCHi5 ties general rates cases and
TO TEXAS TILITIE thecityincurscumull tiveex-
oenses otherwise ream rs-
EECT CC C ableby I U Electrl underbu$e�
FPFROVID€ FCC RS5AppNDIF-• flan 24 of the Public Utility
FICKCfiPVOENCIIVIDINGIANEF- succesw. excesso r
po EE pp ff EE successor r Regulatory Act in of
ANCEIDBINGFO-RACCEPt- Electn,thenIn imburent,TU
y EXA U Electric shallreimburseallot
E R C O the expenses Incurred b the
TIES ELL I C MPq riw�„�o...,.riu<,,..,.ite, iY..
FI DINGG qND eralratecasesfiledduringtbe 1
DEIERMININGTH TTH period ended fifteen (15)
MEETING Ay W�{I H THIES yyears from the Iveg date
8RDINA CE IS PA SED IS hereoflnexcessofsa dS4mll-S j G N E D ��
RE }(N�IR TDHEYFFFU W IC ASS lion.s The
uesemd In tthneera iotne
wHEREAS, reca utilities ME T IIS T 9tr( DO OF AUGUST 1993
lir
I Electric. J O mea Electric
in which it
a seeks ,
�' Elec- TUUEIecte ratestschar ed NOTARY PUELIC
ks
thereinafter Is engagedn call �U buesCi to Increase its nubear J �`
ric")Is in the bust- toa ssubstantial numbero its
),,ZL
nessofprovldln9electrl utlll- customer clauses in the Its
,c ?,_=,.,/,,,,,
Southlake alleys,
ft called I andiwhich in It system
ty service within the City of elsewhere
streets,
f ande in en TUes El e TARRANT COUNTY, TEXAS
g and overall revenues arec deter-
"City
rights-of-ways within teed in setting such rates.
')andlsus ngthe ubltc r�
City agrees f exercisen rer-
ter thatr si under the City aebe an consider- —_ Y,v�`h
theber�i 4 adopted n Ncve of j Ing the facts and clrcum- .�p,..,,•
�`� stances,to keep Its e�cpef�585 0 ,.a _ S0_ A. RUSSELL
�� Pu onaveragetounderS1,000,uuu +'
ed b Yuu55�EEleecc}trss and ppe�r ggeerr�1eerai rate case. %.t.+ � -" % COMMISSION EXPIRES
WHEREAS,TUElectrichas, SECTIONlrtlir l standln L COPS
Dursuantto said franchiseor- the provisions of ion y, i�:7�1 OCTOBER 27, 1993
dinance,been paYingtotheCi- hereof,TU Electric will con- NI;.•„_„..k•+-
ty of sum equal to three per- tinue to reimburse the Clty's '4% �r•
cent (3%) of its gross ratemaking expenses,If any
revenues received fro9m ales In connection with the appe I
I
of electric energy by U Elec- and any remand of Public
tric from its residential and Utility Commission of Texas
commercial business within Docket No.9300 that are oth-
theCityfortherights ndprly- @grw"lse reimbursable under
lieges set forth in said LOf Sect Ion 24of the Public(rtliltyAND RETURN THE LOWER PORTION WITH YOUR PAYMENT•
franchise ordinance and in lRtegulatoryAct,andwillcon-
addition thereto, has ream- tinue to reimburse ethe CIt 's
temak ng exCpennsseety sor pppuirsuant- In tconnectionwith PubllfcUtiI-
to5ection24oftMPublicUtlli- Ity Commission of Texas
ty.RegulatoryAct and Docket No.11735 that are oth-
REMIT TO : 400 W • SEVENTH , FW, TX 76102
WHEREAS the City and TU erwlse rembursable under
Electric de 7retoamendsaid Sect Ion 24of the Public Utility
Fortfranchise Ordinance to pro- Regulatory Act to the extent,� � X MCXXXEX 1.20511
vldeffooratlfferentconsldero- tha sad ratemak ng ex- hE f�T i C: 1� 1
commercialtf rt� It %)5of its oss t thTexas of ithe last aid C by 1■ra m
revenues from the salts off the PublicUUtiiityCommissionl
electric energy by TU E10C of Texas (I.e.,fhe said Gomg- ACCOUNT AMOUNT
c trllc from Its residential and mission'sithin the last Dnerroeev(heererarulin9) NUMBER C I T 5 7 DUE 13 5 • 0 2
the Citywicbflusiness different con- City said
Docket No.
any
siderat)on In 4l�ude among ratemaaking expenses In-
otter thins, TU ELectric'S ur red in connection with said
1
obligation to reimburse the ci- Docket No.11735 that the City F
ty for its ratemaking and incurs on acp2ppeeal of said roder
other regulatory expenses to will be the Cltv's sole resoon-
beincurredbytheLI involy- slbllityandfurthera rees-In
Mgg the regulation pf (J E the events that the Sits Is a
tric; NOW THER FOR participant In the inlet Inter-
F_IT ORD INED Y T inter-
vention of cities managed by
I Y COUN IL OF THE I- the Steering Committee of TU
Y OF sou HLAKE,TE Electric Service Area Cities
S intervening in Docket No.
SECTION 1. The 11735 that the City decides to
Lion payable by TU Ieccttric TtcenietlSteeeeringpt participate
for
gffor the rights nedcfp it s ratemaking expenses under
tllnarl�tNoV4 of rig byion24of the Public Utility
III !nonce
on November 12 O U ulatory Act that are in- ORIGINAL
1956 and dyly accepted byTll curved Docket No,appeal ao rei r 135 • DAL
Electric Is hereby changed to in No. 11735 to r Im-
be four percent (4%) of its R O burse TU Electric the C�ty's PLEASE PAY ►
gross revenuesfromthesales share or reimbursable ex- 6 0 9 2—9 5 9 5 THIS AMOUNT
ofelectrlcenergybyIliElec- E a d owed ti1yeTU said
Electric
tric from its residential and F A said Steering Committee
commercial business within determined by the methodoio-
the corporate limits of the Cl• flychns nbyythe3saidSt Steering
tv,said changed percentage CO mmlttee`theCitynotifyTU
to oe apbppli to said gross re- F lectric of the meth so cho-I
1993oelg,sand beingg on June payable as sen prior the
Steering
iion lof
specified in said franchise or- an Invoice by the Steering
PLEASE WRITE IN AMOUNT ENCLOSED
dinancB and based upon the Committee for the payment
sametime periods as sppeedd_ by TU Electric of said reim-
ti doin d bursable expenses related to-
Q being payr(lent for, .laid anneal-1 -.
dur ,ng period spetifl n except as dedbyy o q shall
said franchise ordinance, resslva tandeffect
said payment being In lieu o Hance,Ordinance s until
and shall be aCopled as pa remain In full for term
m obligation*allTof TU Electrico pay sl ccdrsaid s, rental*, pole gn4gchlpse tO tordldt elaan.
ordinance
�«ttallss, wireea taxes,
are,inaspec sh to en,
sb rV sf ggeme ed TU
latocYYhissx�eetteannxxSeees,ucerrteriSnerction I TEefelefrlc sl acewlfhln flfteen
24ofthePublicUtilltyRegula- Electricys from the fci�n fllelis
cesso law,r or o he charges sa l d minor a•�an fthlsthe
iii
and taxes of every kind,ex-
cept ad valorem taxes sales din
retary In substantial
and use taxes and special tax- Clty�IIONIn9 for ayor and
Ss and assessments for public iv the ffonoranleM
m�CTION 2.VI Electricshall T ow Utilities Electricctingb I
hereund one-time
a purpose Texas TU of tlae4e.herectrIc gned
y ac
makingthe ngedconsider. author zedoff cer'hereby
of ac
atlon as cpwr fed I Serf
hereof effective onBJuntee Y1, �eptsbrdlnanceNo amend
ment dattes spaeltcefieed Ineurdl- 11 93 it��yy'ofTE l rl
nance No. 4 said one-time tween ttleu-I ILITI y
Payment be1ng due and Pay: TEXAC-RIC COMPO'N
Eble thirty(30)days after Tu EbLE
lectric's acceptance of this TeaxS Ut I ranchi�tserAn'end
ordinancem
oae as provided In Sseec rr� p
sec-
tion ccuuletetric hafia follnd ow:
(a)TU SECTION 7.It Is hereby Ott I
the
monthly averaage of Its gross clalq f�ndting at which_tho
revenues from me salts of thattf+emee assedIsoPe
electric energy by TO�Elec- ordinuannlce a required bv lthe
aw
imerclalbussinesss residential
_the and that pubend notice
pu��
corporate limits of the City Tune, pllceg Nas glv�as re
during the period upon which Bald ED
themost recent franchl pa ulrse5d pNp PPROV pF
rnent June 1if 1993,was the based;pr (b) gY THE GITY HCLAKE
t4hes sold monthly
onss hellyelaaverrpts agell b�e THES •YjEgq D DAY OF
(c)the calculated ated Gary FIcc so thlake
shall be multipliedh by the Mayor of Sou
number
uu ebl ofw olemonths
hst of Attest: Le rend
through Sandra Letary
drrloy of dfforrwwhlast
ich thenth most recent Irrov
K a 11 term',
franchise payment made to yirttorne -
the City prior to June 1,1993,,
was made.
1
S
1111