Item 4P AudioU ' - JTY 01��
SOUTHLAKE
Mayor and City Council members I will be presenting Ordinance No. 1054, which is
the 1 st Reading, Approving a franchise agreement with Oncor Electric Delivery
Company LLC.
Requested Action
City Council approval of Ordinance
No. 1054, 1St Reading
6INR
The purpose of this item is to approve a new ten year franchise agreement with
Oncor, granting them the right and privilege to operate in Southlake public rights of
way for the purpose of maintaining electric power lines and all necessary
accessories for the purpose of delivering electricity to the City and its residents and
businesses.
Ir
FVNA City of Southlake Strategy Map
Q The City of Southlake provides municipal services that support the highest quality of life
for our residents and businesses. We do this by delivering outstanding value and
I unrivaled quality in everything we do.
Managedte$usiness
B1 Achieve tresf BZ Lollabera[e with 83 Enhance resident 84 previde 851mprove
Imtieaa gkelNt In select partners to quality of life &buslnass hlgM1 quality performance of 660pti `i:e
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Provide Financial stewardship
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andards Nfenwe mtemad cen[ro!s.
Promote Learning & Growth
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understand lhestrntegy& I repebllltles to dclWer � r � In �� a s , N �� ll _ led re dM1lgh decision meNdngae a
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This franchise agreement is linked to the City's focus area of Infrastructure and
meets the corporate objectives of 82 — Collaborate with select partners to
implement service solutions, and 85 Improve performance of delivery & operational
processes.
3
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Managedte$usiness
B1 Achieve tresf BZ Lollabera[e with 83 Enhance resident 84 previde 851mprove
Imtieaa gkelNt In select partners to quality of life &buslnass hlgM1 quality performance of 660pti `i:e
ell [ItYdlsclptlnes implamenee service sustalne1,111"through ma delivery &operational to chnelg
pi
zolptlgns Rourism servlce processes
Provide Financial stewardship
Fl Adheretafinanaiafmanagement F2lnvest [u provide &maintain
spies &budge highq try PA Bice sets
ift
F3AChleveliscal wellness WE- 1,11sh &meietain
andards Nfenwe mtemad cen[ro!s.
Promote Learning & Growth
L1 Ens—ourpeople lP €nhance lnadership L3 Attract, daveiap& L4 aetognite& LS Empower lnlp
understand lhestrntegy& I repebllltles to dclWer � r � In �� a s , N �� ll _ led re dM1lgh decision meNdngae a
howth,,,ntrlbutetolt J l spits j perbrm in the erganlaat en \
This franchise agreement is linked to the City's focus area of Infrastructure and
meets the corporate objectives of 82 — Collaborate with select partners to
implement service solutions, and 85 Improve performance of delivery & operational
processes.
3
Background Information
• 10 yr. agreement w /Oncor
• Agreement Provisions include:
— Use of Public Rights -of -Way (ROW)
— Relocation & Abandonment of lines and ROW
— Franchise Fee Rate
— Payment Schedule
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LANAIS & GYR'
The purpose of this item is to approve a new ten year franchise agreement with
Oncor, granting them the right and privilege to operate in Southlake public rights of
way for the purpose of maintaining electric power lines and all necessary
accessories for the purpose of delivering electricity to the City and its residents and
businesses.
The provisions set forth in the proposed agreement specifically speak to the manner
in which Oncor will construct, operate, and maintain its equipment within the City's
rights -of -way. It also addresses the process for relocating and abandoning
equipment as well as rights -of -way, and finally the agreement explains the franchise
fee and the payment schedule to the City.
If the City ever decides to amend current ordinances or propose new ordinances
that pertain to the City's public rights -of -way the City has agreed to provide Oncor
notice and an opportunity to review and comment upon any proposed changes.
M
Financial Considerations
W Franchise T"MeRate 1-
Current Agreement 0.00303101 KWH
Proposed Agreement 0.0031830 l KWH
Difference 5% Increase
1
Once the agreement is approved Oncor will pay the City a franchise fee of 0.003183
cents multiplied by each kilowatt hour of electricity delivered by Oncor to each retail
customer whose point of delivery is located within the City's boundaries. This
franchise fee is a 5% increase over the current fee rate, and will be paid to the City
in quarterly installments.
5
Legal Review
18 month negotiation
TOASE review
Complies with all statutes and
regulations
R
Council should know that this agreement has been negotiated over the course of
the past 18 months with the help of Cara White from our city attorney's office. This
agreement also complies and acts in accordance with the Texas Utilities Code and
Public Utility Regulatory Act
A
CITY 01i
SOUTHLAKE
Questions?
Ben Thatcher 817 -748 -8005
7L A
a
0'
Staff recommends approval of Ordinance No. 1054, 1St reading. If Council approves
the 1St reading then Public Hearing and 2nd reading of this ordinance will occur at
the January 15, 2013 City Council meeting. If you have any questions on this item
please contact Assistant City manager Ben Thatcher at 817- 748 -8005.
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