O-2910-5-10ORDINANCE NO. 2910-5-10
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, RENEWING THE FRANCHISE AGREEMENT GRANTED TO
GRAYSON-COLLIN ELECTRIC COOPERATIVE, INC. FOR AN ADDITIONAL 5
YEARS; AMENDING THE DEFINITION OF GROSS REVENUE AND PROVIDING
NEW LANGUAGE FOR THE COMPENSATION OF COSTS ASSOCIATED WITH
THE RELOCATION OF ELECTRIC FACILITIES IN ACCORDANCE WITH
STATE LAW; PROVIDING A REPEALING CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Grayson -Collin Electric Cooperative, Inc. ("GCEC") is engaged in the business of providing
electric delivery service within the City of Allen, Texas ("City") and is using the public streets, alleys,
grounds and rights-of-way within the City for that purpose under the terms of a franchise ordinance duly
passed by the governing body of the City, by Ordinance No. 2296-6-04 on July 13, 2004, ("Franchise
Agreement"); and,
WHEREAS, the first five-year term of the Franchise Agreement expired on July 31, 2009, and the City and
GCEC, pursuant to ordinance No. 2846-7-09, extended the term of the Franchise Agreement for a period of
six (6) months and allowed for an automatic renewal for an additional (6) six months. The purpose of this
extension was to provide time for the City to conduct an audit of GCEC and provide time to renegotiate the
terms of the Franchise Agreement if the audit revealed significant findings; and,
' WHEREAS, Section 3 of the Franchise Agreement provides for the renewal for two additional terms of five
(5) years upon the expiration of the initial term, and the City and GCEC desire to renew the Franchise
Agreement for one (1) additional term of five years to expire on July 31, 2014; and,
WHEREAS, City and GCEC desire to amend Section 1.7 of the Franchise Agreement to provide for a new
definition of "Gross Revenue" and amend Section 2 of the Franchise Agreement to provide for the
reimbursement of relocation expenses in accordance with State law.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. The City Council hereby agrees to renew the terms of the Existing Franchise Agreement for an
additional five years to expire on July 31, 2014, pursuant to Section 3 of Franchise Agreement between the
City and GCEC.
SECTION 2. The City and GCEC hereby amend Section 1.7 of Ordinance No. 2296-6-04 to read as follows
"Gross Revenue" shall mean the gross operating revenue for all services provided by Cooperative to its
customers within the corporate boundaries of the City as accrued on the Cooperative's books pursuant to the
accounting principles established by the rural Utilities Service of the U.S. Department of Agriculture, 7 CFR
1767, and, specifically, 1767.26, Accounts 440-456, as amended. The term "Gross Revenue" shall include
franchise fees collected from the Cooperative's customers located with the City and shall also include
miscellaneous service fees and charges and pole attachment fees. The term "Gross Revenue" shall not
' include (i) local, state, or federal taxes collected by Cooperative that have been billed to its customers and
separately stated on customers' bills or (ii) contributions in aid of construction (CIRC).
SECTION 3. The City and GCEC hereby amend Section 2 of ordinance No. 2296-6-04 by adding a new
section 2.11 to read as follows:
' 2.11 Relocation of Electric Facilities. The City shall compensate GCEC in accordance with applicable
State law.
SECTION 4. That except as amended herein, the terms and conditions of the Franchise Agreement adopted
pursuant to Ordinance No. 2296-6-04 shall remain in full force and effect.
SECTION 5. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance
be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining
portions of said ordinance which shall remain in full force and effect.
SECTION 6. All provisions of the Ordinances of the City of Allen, Texas, in conflict with the provisions of
this Ordinance, be, and the same are hereby, repealed, and all other provisions not in conflict with the
provisions of this Ordinance shall remain in full force and effect.
SECTION 7. This ordinance shall take effect immediately from and after its passage and it is accordingly so
ordained.
DULY PASSED AND APPROVED ON THE FIRST READING BY THE CITY COUNCIL OF THE
CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE II'm DAY OF MAY, 2010.
DULY PASSED AND APPROVED ON THE SECOND READING BY THE CITY COUNCIL OF
THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 25T" DAY OF MAY, 2010.
' DULY PASSED AND APPROVED ON THE THIRD READING BY THE CITY COUNCIL OF THE
CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE S'" DAY OF .RINE, 2010.
APPROVED:
Stephen Terrell, MAYOR
APPROVED AS TO FORM: ATTEST:
P er G S ith, crity ATIOlt Y Shelley B. Ge , TTY SEC Y
Ordinance No. 2910-5-10, Page 2