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Home My WebLink AboutOrdinance 1893 ORDINANCE NO. 1893 AN ORDINANCE AMENDING THE EXISTING FRANCHISE BETWEEN THE CITY AND TEXAS UTILITIES ELECTRIC COMPANY TO PROVIDE FOR A DIFFERENT CONSIDERATION; EXTENDING THE TERM OF SAID EXISTING FRANCHISE; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY TEXAS UTILITIES ELECTRIC COMPANY, FINDING AN DETERMINING 1HAT lliE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBUC AS REQUIRED BY LAW. WHEREAS, Texas Utilities Electric Company (hereinafter called "TV Electric") is engaged in the business of providing electric utility service within the City and is using the public streets, alleys, grounds and rights-of-ways within the City for that purpose under the terms of a franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by 111 Electric; and WHEREAS, 111 Electric has, pursuant to said franchise ordinance, been paying to the City a sum equal to three percent (3%) of its gross receipts from the retail 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 rate making expenses pursuant to Section 24 of the Public Utility Regulatory Act; and WHEREAS, the City and 111 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 retail sale of electric power and energy within the City, which different consideration includes, among other things, TV Electric's obligation to reimburse the City for its rate making and other regulatory expenses to be incurred by the City involving the regulation of 111 Electric; Ordinance No. 1893 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. The consideration payable by TV Electric for the rights and privileges granted to TV Electric by the franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TV Electric is hereby changed to be four percent (4%) of its gross receipts from the sale of electric power and energy and other services, but not to include gross receipts from power and energy sold to other public utilities. 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 TV 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. TV 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, -2- Ordinance No. 1893 without altering the payment dates specified in said franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TV Electric, said one-time payment being due and payable thirty (30) days after TV Electric's acceptance of this ordinance as provided in Section 7 hereof, and being a sum calculated as follows: (a) TV Electric shall determine the monthly average of its gross receipts from the retail sale of electric power and energy within the City 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 1% (0.01); 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 TV Electric files general rate cases and the City incurs cumulative expenses, otherwise reimbursable by TV Electric under Section 24 of the Public Utility Regulatory Act or Similar or successor law, in excess of $4 million, then in such event, 11] 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 TV Electric in which it seeks to increase its rates charged to a substantial number of its ~3- Ordinance No. 1893 customer classes in the City and elsewhere in its system and in which TV 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 1 hereof, TV Electric will continue to reimburse the City's rate making 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 pubic Utility Regulatory Act. SECTION 5. The said franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TV Electric shall not terminate as provided therein, but the initial term of said franchise ordinance is hereby extended for a period of fifteen (15) years from and after the date on which said franchise ordinance would have otherwise terminated but for this extension. -4- Ordinance No. 1893 SECTION 6. In all respects, except as specifically and expressly amended by this ordinance, the said franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TV Electric shall remain in full force and effect according to its terms. SECTION 7. This ordinance shall take effect from and after its final passage and TV Electric's acceptance. TV 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 Electric Company (TV Electric), acting by and through the undersigned authorized officer, hereby accepts, on this the day of , 1993. Ordinance No. 1893 amending the current franchise between the City and TV Electric. TEXAS UTILITIES ELECTRIC COMPANY By: President SECTION 8. 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. Ordinance No. 1893 PASSED AND APPROVED BY TIlE CITY COUNCIL OF THE CITY OF NORTIl RICHLAND HILLS, TEXAS this the 14th day of June, 1993. ~ ATfEST: (l¿fl~~ ~ ¥ Secretary APPROVED AS TO FORM: _ .--' //~ r: ~tt:t!!:J!þ~~ ~V\~ --\ \;\' LEGAL AFFID --- TheÇlty COtlftC,Uof.fhe CIty of North Rlchland Hills, T" ...~.,...._.as, 1" . T.... 1 '.' '. .. . '4Ød Tr, ..," T.... 2F,. ,... 2P , .- ' ... . j a .' . ~, A...... 3U, ftMt .....Ir p.ctt...rnt....nof .-1 ......Famlly - -It..... ........ Sfngte FMntty. "Mse propertIes ,are located It the northwest corner of Douglas L,lne and Hightower Drive. ThIs Hearing wiU be held at 7:30 p.m. In the CouRcll Chambers, 7301 Northe.st Loop 820, North Rlchland Hills, Texas. This Is Case No. PZ 93-Ð8. Tommy Brown, Mayor City of North Rlchland Hills, Texas MCN CPH _ PUB: 06/13/93 AI, THE STATE OF TEXAS: COUNTY OF T^RR^NT COPY IIERE Before me, the undersigned authority on this day personally ap- peared ~HON_º-~__-1.!:~-º~~1.,~ known to me to be a credible person, who first being sworn, deposed and upon her oath said: That she is the c:.J,,-~_^--~_~ of the MID crT IE S NE W S , a newspa- per which has been regularly and continuously published and of general circulation in the City/Town of N. RICHLAND HILL~ for a period of more than one year next preceding the first publication of the attached LEGAL AD and that he caused said notice to be published in said newspaper on the following date(s). ip)/ 3/c¡,3 That the attached is a true and correct copy of said notice as published on said date(s) in said NEWSPAPER /2h 1F7I1CttG ~ f¡ 1J7rL¡)10t,-- ) Sworn to and subscribed before me, tbis the J!1 day OfCJlL~0 19~ _~~~~ ~éf'\f\o. heN\. !\,--,..:J Notary Public, - TARRANTCounty, Texas