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Thornpson oatnber 15, 1992 TU Electric Paqe Two As parc of the consideratin� fa� allowing autornatic renewal of the existi�g franchise, TU F.lectric hereby additi.onallp agrees that, if T� E1�ctric shall at anq time after the ef�er.tiva date af this r�newed fra�chise enter inta a xranchise in which it agrees to pay a franchs.se or �trPet rental fee (niher than by succession nr assignment of an existing franchi�e through tkie acguisitinn by merger or otherwise of a�other uti.li,ty), renew Gr extend a Er.anchise ocdinance agreement adopted by anp municipali.t.y on or �fter. tkie effect.ive dat� of tkiis rezaewed fr.anchise (aiher t.han a short. term [not. to exc�ed three (3) years in the aggregate ta b� extendecd by the Ci.t,y aaa the event that the City determines tha.t TU Electri.c and such other muni.cipality ar.e negotiating in good fai.thJ extensic�n of }�re-existing franchise agreem�nt pendi.ng npgotia�.ion of a new �rar�chi�e agr.eement) ancl that franchase agreement or street rental o�dinance pravides £or pa,yrnent to t.h@ municipa).itiy for th� use of ,aid municipalit.y's public YigYAt5-O�-Wra!f in an amaunt, however CX1�i8Ct0Y7.7.2Ci, hi.gher than t.hree (3) percent oE TU Electri.c`s gross rece.ipts (fr.�m sale af electric energy) in sai.d municipality, then TU Electr.ic's payments under this renewed franchise shal.l be increased ta that proportionately higher rai:e of TU Elertric°s said gross recei.pts w�.thin the City of E`ort Worth. Such ancreased payment to the City shall k�e subject to the same method or ter.ms of. colleating of such fee £rom TU Electrir.'s cust�mere. TU L�lectric shall notify the City of svch increase withi.n thirty (30) days of the other payment's effective date. Cnllections ot the f.ranchise fee and payments io the City will be based on such higkaer rate frnm the first date of the first mozath next fol.lowit�g tlae date the City acaepis and authorizes the increase on the same terms as those in effect for the other municipalii:y. The collection of the fra�ahise fee and the i.ncreased payment. shall. cont�.nue izz�.til Pxpiration of the term of this renewed. franchise, or. unta.l. the �xpiration of the franchise agreement of such other. municipality, whzchever is earli.er. Provided that nothing herein shall alter nr aff.ect the patlern of the dates upon whi.ch the quarterly payments specified in the franrhise (Cont.ract No. 7230, executPd ozi August 2]., 1.972) are �ayable or the �ier.9.od tc� which ear.h of said payments ar.e referabl.e as pr.ovi.ded ther.ein, F'urther, as part of the consicleratinn for allnwing automatic renewal of hhe existing franchise, 7'U Electric agrees h.o make avai].able for audit by ttze Catp, at TU Electr.io's offices af. reasonable i�imes and upon reasonable notice, its accounts and recnrds reflecting �he arnaunts of, the basis for the cornputation of, its gross receipts from the sale oE electra.cal ener.gy within the corporate bnundaries af the City of Fort Worth as well as its accouni:s and records pertaini.ng ko the payments rnade by TU Electric to other municipal9.tiea for the purpnse of veri.fping the appropri.ateness o£ ttxe franchi.se fee payable under this renewed franchise. A��. :#�e� �. '.i'k��iqi�Y>.«n Oe:t�s��ez: �.`i, :t��91. `.E'C? PSLi�r;�L'��:E:t. �?&3i��? `I.'k31'�� 7:i 't"tf :C;t�et�a<z �cxr�ra> f�c> f:kcc� i:�-�s�z��� c����z:e>��t3 izx �t�iF: 1ri:8:�x�. i:kpFtY �YJ.e�,�s�: e��c9c�Yt� thi:� l�f:t.c3€- c3e� i:iar �i:i;�2��L�tr� li,rie i���ic�s�r< iF#��si ;.��&'tc.arr�J «� i�EAs etc�3e:raz�e�z�#� sncZ �����3��cisnc>�d: ti� i:3i� A�ixi:�. BSxc>xt.i� t`.i;#:� t7c�ts��ci.1, :�tac�k< �r�zr`c�±mrrah. <ax=.ea �t[t�zxc�r�iasnt �>�i.13. t:iiesx #a�:�cx3�F� i>ffc>.t:�.'i:v'�. ��G.r�r i:�:u.ly �r�z:av:;; .�� .� , � �„ . � c° < �.� � � .�:.. \.. � � «k3 'Y�F x� r. �. t � t,".a.i�� FS�a�a.�c��:c' F3°I' : c�� �[.l;tx��s�l�t�alz�e� ]�t,� �,rai1 �d��:�.��ii '�<;t � Y �._.: ._.. _ .._. ......__. . . .... :::: _ _� � a^ 12. `C2aE:�tt?p Y(3r't aa:n�r�r. Vi.<;r� PE��:�:�.E�ez�€� �'�'SF }':i��cq<e��:�T��`.C. �i'1"iFs �`1' : � �a' ,� �_`,�-°.�`..E�:...1 i �i`.���,'�.:. C._,t''.`:-.:. . ..:.... ......... G:i:F+j ,.�'i�rr.ati�r:y ': . �= Ce�a��� �xikLc�r%�,at:i�u �N � : ::. � 33�ae �,�. �--..:.:;� RLG�� JUNTINO-2 iPANSPORTPTiOH�NUB4.IG WORK9J � � O� �O� ��� i.�y��� ��,y 1. qafER AW.tiN�51RATiUN { /LT�'�'l ldlayor and Council Crrmmunication Ol/1 SUBJECT AI RECOMMENDATION: C-13671 12TUEC lof2 TO fRANCHISE AGREEMENT WITH TU ELECTRIC (CITY SECRETARY CONTRACT It is recommended that the City Council authorize the City Manager to execute the attached amendment to the franchise agreement between the City of Fort Worth and TU Electric (City Secretary Contract No. 7230). DISCUSSION: The current term of the franchise agreement between the City of Fort Worth and TU Electric is due to expire on March 21, 1993. The franchise agreement provides that; unless written notice is given by either party to the other party not less than sixty days before March 21, then the franchise agreement shall be automatically renewed for an additional period of ten years. The City and TU Electric are currently in negotiations concerning certain elements of the franchise agreement. These negotiations will not be completed on or before the sixtieth day prior to March 21, 1993. Therefore, to delay the initiation of the sixty- day period, and to allow the parties additional time to negotiate in good faith, the City and TU Electric have agreed to amend the franchise agreement to provide that the current term of the franchise agreement, instead of ending on March 21, 1993, will not expire until June 21, 1993. Further, the sixty-day notice of termination period wilt not 6egin until sixty days prior to June 21, 1993. In addition, TU Electric has agreed that, should the City of Fort Worth allow automatic renewal of the existing franchise, effective June 21, 1993, that, if TU Electric should enter into a franchise with another municipality in which it agrees to pay a franchise fee greater than the three percent which it pays the City of Fort Worth under its current franchise, then TU Electric's franchise fee paid to Fort Worth shall be increased to that proportionately higher rate of TU Electric's gross receipts within the City of Fort Worth. Finally, TU Electric will agree by this amendment to make available for audit by the City its accounts and records reflecting the amounts of and the basis for the computation of, its gross receipts from the sale of electrical energy within Fort Worth, as well as its accounts and records pertaining to payments by TU Electric to other municipalities for the purpose of verifying the appropriateness of the franchise fee under the renewed franchise. .._ City of Fori �orth, Texas Mayor and Council C',ommunication �. �.,. . �_ � -.. �, .