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Item 4DMEMORANDUM April 30, 2008 TO: Shana Yelverton, City Manager FROM: Sharen Jackson, Director of Finance SUBJECT: Resolution No. 08 -016, Authorize continued participation with the Steering Committee of Cities served by Oncor and authorize the payment of 10 cents per capita to the Steering Committee to fund regulatory and related activities related to Oncor Electric Delivery. Action Requested: City Council approval of Resolution 08 -016. Background The City of Southlake is a member of a 109 — member city coalition known as the Steering Committee of Cities Served by Oncor. The resolution approves the assessment of a ten cent ($.10) per capita fee to fund the activities of the Steering Committee. Steering Committee undertakes activities on behalf of municipalities for which it needs funding from its members. Municipalities have original jurisdiction over the electric transmission and distribution rates and services within the city. The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s when cities served by TXU (since renamed as Oncor Electric Delivery Company) gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for nearly two decades. In 2004, the Steering Committee coordinated the activities of 20 member cities that initiated an investigation of Oncor's wires rates. As a result of the Steering Committee's activities, the Company agreed to make settlement payments to the cities beginning in 2005. Settlement payments from Oncor will continue to be made annually through the entry of final order in the Company's next rate case (expected 2009). The Steering Committee is actively involved in rate cases, appeals, rulemakings, and legislative efforts impacting the rates charged by Oncor Electric Delivery within the City. It is possible that additional efforts will be necessary on new issues that arise during the year, and it is important that the Steering Committee be able to fund its participation on behalf of its member cities. A per capita assessment has historically been used, and is a fair method for the members to bear the burdens associated with the benefits received from the membership. Financial Considerations: $2,570 (2008 assessment 25,700 population @ $.10) Citizen Input/ Board Review: None required Legal Review: None required Alternatives: Approve or deny Supporting Documents: Resolution 08 -016 Staff Recommendation: Approval of Resolution 08 -016 RESOLUTION NO. A RESOLUTION AUTHORIZING CONTINUED PARTICIPATION WITH THE STEERING COMMIT'T'EE OF CITIES SERVED BY ONCOR; AND AUTHORIZING THE PAYMENT OF 10 CENTS PER CAPITA TO THE STEERING COMMITTEE TO FUND REGULATORY AND RELATED ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY WHEREAS, the City of a regulatory authority under the Public Utility Regulatory Act (PURA) and has exclusive original jurisdiction over the rates and services of Oncor Electric Delivery Company (Oncor) within the municipal boundaries of the city; and WHEREAS, the Steering Committee has historically intervened in Oncor (formerly known as TXU) rate proceedings and electric utility related rulemakings to protect the interests of municipalities and electric customers residing within municipal boundaries; and WHEREAS, the Steering Committee is participating in Public Utility Commission dockets and projects, as well as court proceedings, affecting transmission and distribution utility rates; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor; and WHEREAS, in order for the Steering Committee to continue its participation in these activities which affects the provision of electric utility service and the rates to be charged, it must assess its members for such costs; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TEXAS: I. That the City is authorized to continue its membership with the Steering � inmittee of Cities Served by Oncor to protect the interests of the City of � �+�-e, [ f) 5 and protect the interests of the customers of Oncor Electric Delivery residing and conducting business within the City limits. II. It is further authorized to pay its assessment to the Steering Conunittee ten cents ($0.10) per capita based on the population figures for, the City shown in the latest TML Directory of City Officials. III. A copy of this Resolution and the assessment payment check (made payable to "Oncor Cities Steering Committee" shall be sent to Jay Doegey, Chair, Oncor Cities Steering Committee, c/o City Attorney's Office, Mail Stop 63 -0300, PO Sox 90231, Arlington, Texas 76004 -3231. PRESENTED AND PASSED on this the day of , 2008, by a vote of ayes and nays at a regular meeting of the City Council of the City of , Texas. ATTEST: Signature City Secretary Signature Mayor APPROVED AS TO FORM: City Attorney Im (2)