O-1190-7-93ORDINANCE NO. 1190-7-93
AN ORDINANCE OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS,
AMENDING THE EXISTING FRANCHISE BETWEEN THE CITY OF ALLEN
AND TEXAS UT LMES ELECTRIC COMPANY TO PROVIDE FOR A
DIFFERENT FRANCHISE FEE, PROVIDING AN EFFECTIVE DATE;
PROVIDING FOR ACCEPTANCE BY TEXAS UTHMES ELECTRIC COMPANY;
FINDING AND DETFRNUNING THAT THE MEETING AT WHICH TMS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;
AND DECLARING AN EMERGENCY.
VIIIERFEAS, Texas Utilities Electric Company (hereinafter called "TU Electric") is engaged in the
business of providing electric utility service within the City of Allen and is using the public streets, alleys,
grounds and right-of-ways within the City for that purpose under the terms of a franchise ordinance
passed by the governing body of the City of Allen on July 27, 1953, and duly accepted by TU Electric;
and,
WHEREAS, TU Electric has, pursuant to said franchise ordinance, been paying to the City of Allen a
sum equal to three percent (3%) of its gross receipts from the sale of electric power and energy within
the City for the rights and privileges set forth in said franchise ordinance and, in addition thereto, has
reimbursed the City for 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 receipts from the sale
of electric power and energy within the City, which different consideration includes, among other things,
TU Electric'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 ALLEN,
TEXAS, THAT:
SECTION 1: The consideration payable by TU Electric for the rights and privileges granted to TU
Electric by the franchise ordinance heretofore duly passed by the governing body of the City of Allen
on July 27, 1953 and duly accepted by TU Electric is hereby changed to be four percent (4%) of its
gross receipts from the sale of electric power and energy 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.
SECTION 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 said franchise ordinance heretofore duly passed by the governing body of this
City and duly accepted by TU Electric, 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 receipts from the sale of electric
power and energy with the City of Allen during the period upon which the most recent franchise
payment made to the City prior to June 1, 1993, was based;
B. The said monthly average of its said gross receipts shall be multiplied by one percent (1%); and,
C. The product so calculated shall be multiplied by the number of whole months from June 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 1, 1993, was made.
SECTION 3: Notwithstanding anything to the contrary in Section 1 hereof, if TU Electric files general
rate cases and the City of Allen incurs cumulative expenses, otherwise reimbursable by TU 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 of Allen 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. The City of Allen 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 1 hereof, TU Electric will continue to
reimburse the City's ratemaking 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
of 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. 1.1735
that the City incurs on appeal of said order will be the City's sole responsibility and further agrees -- in
the event that the City is a participant in the joint intervention of cities managed by the Steering
Committee of TU 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 the 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 to 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, the said
franchise ordinance heretofore duly passed by the governing body of the City of Allen and duly accepted
by TU Electric 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 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. -
Texas Utilities
undersigned authorized
1993, Ordinance No.
and TU Electric.
Electric Company (TU Electric), acting by and through the
officer, hereby accepts, on this the day of ,
amending the current franchise between the City
TEXAS UTILITIES ELECTRIC COMPANY
By:
President
Ordinance No. 1190-7-93 Page 2
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.
SECTION 8: An emergency exists necessitating the suspension of any rule requiring multiple readings
of this ordinance and all multiple readings of this ordinance are hereby waived.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS,
ON THE 15TH DAY OF JULY , 1993.
APPROVED:
oe Farmer, MAYOR
APPROVED AS' TO FORM: ATTEST.
Dofi'� =mss O.►!
Ordinance No. 1190-7-93 Page 3
TUELECTRIC
July 28, 1993
Terry R. Griffin
Sr. Vice President
TO THE MAYOR AND CITY COUNCIL
OF THE CITY OF ALLEN, TEXAS:
The undersigned hereby accepts the terms of that certain franchise passed and adopted
by the City Council of the City of Allen, Texas, by ordinance duly approved by the Mayor and
attested by the City Secretary on July 15, 1993, same being, "AN ORDINANCE OF THE CITY
OF ALLEN, COLLIN COUNTY, TEXAS, AMENDING THE EXISTING FRANCHISE
BETWEEN THE CITY OF ALLEN AND TEXAS UTILITIES ELECTRIC COMPANY TO
PROVIDE FOR A DIFFERENT FRANCHISE FEE; 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; AND DECLARING AN
EMERGENCY. "
IN TESTIMONY WHEREOF, witness the corporate signature of Texas Utilities Electric
Company by its duly authorized officer, this the 28th day of July, 1993.
TEXAS UTILITIES ELECTRIC COMPANY
�Ll� Z
Te 'ffin
Sr. Vice P esident
Original acceptance of anchise, of which the foregoing is a true copy, was filed in my office
on the. day of - T, 1993, at 105 -o'clock Lm.
(CITY SEAL)
Cky Secr ry
City of Allen, Texas
1506 Commerce Street Dallas, Texas 75201 (214) 698-3650
TUELECTRIC
July 30, 1993
Joe Bilbo
Manager
Mr. Jon McCarty
City Manager
City of Allen
One Butler Circle
Allen, TX 75002
Dear Mr. McCarty:
There has been some concern raised by several of our cities about the application of the $4 million
cap on non -reimbursable rate case expenses under the franchise amendment previously submitted
to you by TU Electric. This letter will confirm that, in the event that the City of Dallas incurs
cumulative expenses in connection with general rate cases filed by TU Electric during the next fifteen
(15) years in excess of $4 million and TU Electric reimburses the City of Dallas such excess, then TU
Electric will reimburse you your reasonable expenses actually incurred proportionately to the amount
reimbursed to the City of Dallas. This proportionate reimbursement will be calculated in accordance
with the following formula:
A = [(B - $4,000,000) _ B] x C
where:
A = The amount reimbursable to the City;
B = The total amount of expenses incurred by the City of Dallas during the term of
TU Electric's current franchise with the City of Dallas in connection with general
rate cases filed by TU Electric, which expenses would be reimbursable under Section
24 of the PURA except for the terms of said franchise, but excluding all such
expenses incurred in connection with Public Utility Commission of Texas Dockets
Nos. 9300 and 11735; and
C = The total amount of expenses incurred by you during the term of TU Electric's
current franchise with the City of Dallas in connection with general rate cases filed
by TU Electric, which expenses would be reimbursable under Section 24 of the
PURA except for the terms of your franchise amendment, but excluding all such
expenses incurred in connection with Public Utility Commission of Texas Dockets
-Nos. 9300 and 11735.
Sincerely,
%.t� P&�
Joe Bilbo
JB:eI
cc: The Honorable Joe Farmer - Mayor
P. O. Box 76 Allen, Texas 75002-0076
m
AFFIDAVIT AND PROOF OF PUBLICATION
THE STATE OF TEXAS
COUNTY OF COLLIN
BEFORE ME, the undersigned authority, on this day personally appeared DEBBIE
TACKETT, who having been by me duly sworn, on oath deposes and says:
That she is the General Manager of THE ALLEN AMERICAN, a newspaper published in
COLLIN COUNTY, TEXAS, not less frequently than once a week, having a general circulation in
said county, and having been published regularly and continously for more than twelve (12)
months prior to publishing
Ordinance -#1190-7-93
of which the attached is a true and written copy, and which was published in THE ALLEN
AMERICAN on
-• - • i Sunday
and which was issued on July 24, 1993 ,
by City of Allen of COLLIN COUNTY, TEXAS.
A printed copy of said publication is attached hereto.
SUBSCRIBED AND SWORN to before me this day of A.D. 19 ?3
�I ?+ i MISik
rope ES
'•: t? MY COMMISSION IXPIRES d j
z��,..',±?= December 5NIWRY t
12 j
BLIC in and for COLLIN COUNTY, TEXAS
Publisher's fee $ 27.00 _
I
_
i;
CITY OF ALLEN
PUBLIC NOTICE
Notice is hereby given that the Allen City,
Council adopted the following ordinance atj
their -regular- meeting held -on Thursday,
July 15, 1993 (Title only):
Ordinance No. 1190-7-93: An Ordinance
of the City of Allen, Collin County, Texas,
Amending the Existing Franchise between
the City of Allen and Texas Utilities Electric
Company to Provide for a Different Franch-
ise Fee; Providing an Effective Date; Pro-
viding for Acceptance by Texas Utilities
Electric Company; Finding and Determin-
ing that the Meeting at which this Ordi-
nance is Passed is Open to the Public as
Required by Law; and Declaring an
Emergency.
A copy of this ordinance may be read or
purchased in the office of the City Secret-
ary, City 5f Allen, -One Butler Circle, Allen,
Texas 75002.
/s/ Judy Morrison
City Secretary
CITY OF ALLEN r�
t PUBLIC NOTICE
Notice is hereby given that the Allen City
Council adopted the following ordinance at•
their regular meeting held on Thursday,,
July 15, 1993 (Title only):
Ordinance No. 1190-7-93: An Ordinance
of the City of Allen, Collin County, Texas,
Amending the Existing Franchise between
the City of Allen and Texas Utilities Electric
Company to Provide for a Different Franch-
ise Fee; Providing an Effective Date; Pro-
viding for Acceptance by Texas Utilities
Electric Company; Finding and Determin-
ing that the Meeting at which this Ordi-
nance is Passed is Open to the Public as
Required by Law; and Declaring an
Emergency.
A copy of this ordinance may be read or
purchased in the office of the City Secret-
ry, City of Allen, One Butler Circle, Allen,
Texas 75002. _
"s Judy Morrison
City Secretary