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OFFiC£ OF Y#E C#TY AqANAGER
iafl0 T3fRitCMRAbRYC�P9 SYR€EP�
Ft7&? iNdRTk:. TEXAS.lfii82�
(8779 �.Y�➢-�:}�.i!
.�:UYi2 ��.��r. �.�����2
1�4�£'. .TCI���. R�. 'i`�f}ri1575:d,TE
5eniar��s�iee� Preszdent �
i ii �'Iectr.ic
F. Q. Box 97(}
Fart Wartlz, T'exas 761t31-G97o
�e�r Alz, 'Ph�m�san.
Pursuant to our teie�t,ane cdnvexsaticn of SdednesdaY, �une 1?,
1992. this Ietter, when execuked bY `"�� Eiectric, wz i t constitute �n
amandm�nt to tha franchise aa�eement between the City af Poi� Wrx-th
1nd TU Eiec�zic {�',a�Y �e�r�tarY �ontraet �a: 7230);
As You Itinow, th� current tr�-m of' :he �ranaha�e ac�reemerat. a:s
due t.o �xa�re an Se�temher 3. 29}�. Tn accorcla�ce with paraq�apka 3
of �h� franci�ase aqreerneaat. unless vrritten no�iee is gaven k�y
�itiler aarty �a t�e� othei nartY not l�ss th�n six�y days befo;r�
SeptesRL�er 1> �492: theza the franchise aqreement :�hail i�e
au�omatically renewed �r�c sr3 a+�ciit�onai perio� c�f ten years.
The C3iy and TU fi'leet�ic: ar.� currPnf:ly i:n ner�atiaf'ions
r.oncernznq certazn eiements U� the franchis� aqreement. Neither
nartp az�tieiPa�es LhaC these negntia�ians will be �rrraiFleted ot� or
l�efore the si:ctietP: dap vzior tc� ses��em%er 1. 1392. Ther��ore, to
delaY ttxe ina:tiatYan af tlae sixty day periQd, and ta allow the
-aarties acidition�3 tzme to taeqot�ate i;� quoct �aith cor�cea-nin+�
se�.�isions ta the Er�nchise aqreeanent, ths City of �rsrE Worth anca TF7
Fiectr�v heYebY aaree and hereby amand Czty Secretary ConY_ract I�o.
7'230 E.o Pravacle ?�hat �he current term af the francYas�,e aaz�ernene,
i;�steac3 of ext�irzn4 on Septemk,ez I, 1992, �siii r,rit expire unGil
pacr�m6�t 21, .i.9R2; aald that the SixtY daY pPriod refer*ed to in
t�araqrapYa 3 o� t.fae €��nehise aq�eement wall not beqirz until sixtv
cl�vs priar to uPcembPr. 27:. 1992;
Furttier, in Lhe �°��ent t12e Caty o� r�ti 4dc�cth a11Uwe the
franchise aqreesnen� tn autamaticallv r.enew far an acidit7,oazai t:en
yeax per.iod. �ffectivP Decerrtber 21, I9'�2. t�ree City af rort S�'orth
and T[J Flectric hexek�v a4rees as foliows:'
A� vaxt•: ct f.he ransiderat�.�n ior «llc�wine� aufcir.Zati� renew�l
of the existinq f:anchise. TU Eiect.rac rierebv addztianailv ac3re�:
::
aqme Piinted on i?ecycie6 Paper�
Fag'e Na. 2
Mr. Soe R. :'Izam�Son
Jtsne 22, 7.39�
t'hat, if TU E:lectrac shali at any ta:�xre a�ter the e�f�ctive date c�f
this cenewed Erancksise enter into a Eranehss� in vzh�.cEi zt aqsees ta
pay a f�anahise or street r�ntal fee (oCher than b� succe�sinn or
assiqnment of an ex�.stin� franckzase tlirauqh �.he acquisiti;or� by
merger esr attzertsl9e o� ano�k�er utilitvl; ren�c,r �r ext�rad a
franchise ordinance aqreement adowted by any mursicipality on or
afier th� effective date of th�s senewed fsanchise {other than a
shnrt ter� fnot to exoeecd �hrpe (3} y�ars in fihP agqreqa�e to b�
ext�nded iaY t.ize �sty in the �vent ti�cat hhe CiiY r3Etermszaes tiaat TU
F.iactK.ic artd such dther mut�iain�litY aee neqots.atin9 zn qoad faiiktl
ex�ar�sinn of z�r.e-exis�ing fzanehise act`��emen�: a�nciina neetotiation
oE a n�w �r.anchssP aqreemen#�} and that f.r.anaiiis� aqreement n�
sLreeL ren�ai ordinance t�rovirles taz vavmcsnt t.o t:tae munici�aiiiv
far :.!he use nF sa�.cl murzi;cipaiitp°s pu6lxc riqnt.,-rs�-w3v in an
amount, howev�r characCer:aa�d, 2iigher t:han Lhree {3) z�ercenl: a$ TII
�lactric`s qrass receipts ifrom sale c>f �lect.rsc enerqy) in said
municipalitY, Ch�n 2'[T EI�.cCrac' . PaYments uncier tha:r, r�newea3
franchise shal i�ae increased Lo thaC prc�x?dx�ionately hiqher ra�e t�E
'i`U �lectrzc's saiii aro5s rscelpts xaitl�zn tkaa City of Far� Worth.
SucYF tncreased cayment to Fhe cit� shali k�� s�bject t:n f�he satne
metho�l ar ternis ci£ caIlectinq of 5uch f�e from TU EIeccric"�
customers, Tii E.ectric shakl zzoti€Y the City of sucki increase
within thzrty (3Ct� davs c�f t3xe a�her �a.Yment°� eEfective date.
c'oilectiosas a£ the franchase fee and payrn�nt� to �he Cit� wiil be
ba:,er� on such hi9her rate frc�m the �irs� ciatc of �he first monttz
next f�Iiocrinq fhe �aLe tlae Gity acce�t.s anc3 authori��s the
i.ncr�a�e� nn fhe �ame her,ms as tho:�e zr: �f�ect io� ttz� ather
munacipality. The coliectinn nf t'he Eranchise Eee and the incrQasccl
„^.avsnent shal3 cr3nti3�ue unLil exAkraticiz a= f:he Cerm nf thi.s renewe�i
fxa3Zchise, nr. unt.i'i. the Yxniratian c�t. F.he francn3..se� aareement c�f
such other cztunicanality, wnichever ;;5 r�ar3ies. Prtivided thaC
t:otYii.ng ?zerei;z 5hai l ai ter c}s aEfect khe patt�rn oE thP �ates un'on
which the cruarYerly paYments specifaed in tt�e franeiiis� fGantract
%Ta_ 7�30: ex�ecuted an �ugust ?i> 1972) are payab2e ot tk�e�ge�ioci�to
whicYx ��c�-f of` sa�.d aavments are referable a>s t>zo'videcl ther�in.
Fu�Cher, as uzrt a£ the ransideration f:or allo�rinq au�omatic
r�newai o£ the exis�inct franchise, 7t3 Electric agr��s to rrt�ke:
avaiia�le £oz audit bY the City, at TU El�ctrxe`.� affires at
�easona}�le times and zzpon reasanable z�atac`e, z�� ac°cr�cinf.s and
recorcts re£tectinq the amoun�a o�. the basis �or t:he co�putatioi�
nf, ii;;� qross rpc�ipts fr.em the �aie of e3eci-s-ic31 efler.rty withi.n
rhe r.oz€�carat:e 6ounciaries aL t:he, c:itY �f For't: Wartli as welt a. is:�
ac:counts and rer_oxds nertain�n. f_o the savments �nade bY `i`L7 Electx'ic
tn Utfaer municapaiities f or the :�Ezrpos� r>�. veri£ys.nq tite
avr�rnpr.i�teness af 'the ir�nchi._;e fe.e p�yabie ;}nd�r. th�5 r�neweii
L�T:rxnchiSA, ,.,,., ....
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F�qe Ncs. 3
Mr. Jo�e R. i'homi�son
3une i2,: 2992
if TU �lectr�c aqre�s to F,h� t�rms exAresseci in thzs lettez.
then pleas� execeztP this lettex o�x the siq�aturc line �elow, at
whicka tzme this aqr�ement and am�ndment wa.il become effectzv�.
R".' : ea
Acknac�I edaeri ia:Y and
�qzeeu Ed`
B y 7�-' � rT��"3^a'��x,._,..-:-
�'�'� R. Thomr�sbn
Sen7.or Wice Pr�sident
TII Electrie
ATTEST:
t�'t `L`-�..4�.:'� ( "�Y-s�,fr .�m / c._:_--.�
c, t;Y 5ecr�etarl{
Ver}� tr Zy yours
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Sot> T�rrell
Actanq Cif y P.tanaqe�
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�t1�3€G`[ AP1ENi}P9k�T i�Q I�RANCNISE A�REENiENT 4?IIFi TU F:LfC112I,G (CITY �ECRETARY CONTRA�T
PdU, ?23p ..
It is rect�n�m�nded that Y.h� Cii:y CoainciTe
1. Authc�rix� the Gity �9�riager to execut� the attaehed amendmer�� to the fraa�chis�
agraem�rrt hetween i�h� Gity af Fsrt idorth attd Tl# Eie�t�a�. {�i�y 5eeretary CanCraef
Noa 7230}<
�ISGU�SION:
ihe curren� ierm o� the franEhise agre�eateh�. b�tsv��n �he City of �'art W+�r��git �nd 7U
Eie�tric is �iue tn �x�ire �n �eptemk�er 1, i992. In acco��daneE wiit� �h� franc#�ase
agreement� unless evriii.�n nat�ce is g�ven by eikher pariy ta the ather �Sart,y n4t less
tttan sixty days I�efiur� �e�temb�r I, thezs ihe #rancii�se agr�ee�nent shall h� ��atom�trcaTTy
�^enewed fo� an aciditional peraod ,af ten years.
1h� Ci�y and TU �7ectric are eurrenily in neq�ti��ions concerning certain elements of
th� fraetchi'se agreemen�> N�ith�r par�y anCici}�ates ihat these a�egc�tia�tions w4iT kge
c�r�pT�i�d as� or he�ore t�� s9xtietih tlay praar to Sepfiember 7, 1992o Thereffore, to
delay th� irsitia�C4ssn Qfi th� six�y�day period, an€I to a[law'ihe p�r�ies aciditionaT time
io ner�c�tia�e ir� g�c�ci faith, t€�e Gity a�t�1 TU f_l�ctric desi2^e tra �n3end th� fra�achise
�gree�nent to pravide that the curre;�t term afi the frar�chise �qreement; instead of
endirtg an 5eptemher 1, I992, K�iil r�Qt exr�ire unt�l D�cember 21, 1992< FurCher, the
sixtymday r�otice af tet�tair�atf�n ;�}eriad wiit no't hec��n untal �9xty d�ys �rinr to
[7er:embar 21, I992
in add7�ionP TU Eleeiric has agreed �hat should the Ci�y �f Far^f.ldarth allaw auto?naiie
rer�e�val �f the cxr5i'in� f'ranchise, ��feetfve Dccember 21, 1992, tfaat, �-f iU Electric
stac�uld enter 9nta a franehise vaith ariother munic-��ality in which ii agrees f.n pay a
i`ranc.hise fee �re�t�r than �Me three perc�i�t which it pays ihe City �f �ort 6dvr�h ua�d���
��� currr�raT. fr�nchise, �hen TU Eleetrie's franc}�ase fee p�id Co F's�ric Warth s#a�ll be
�ncreased to that proportiana$ely higher rate of T€i F.iectr�c's gross receipts withan
��i� �7�� 0'��� FQP'� �'�t3T"$�1, � � .
Fiaally, TU Etectric sviii agree by this a9��endment to m�kc� avaiIabie for audii by t&�e
City a�cs �ccoun-Gs and recc�rds reflect�ng the amvunt5 �f and t#te basis ror i}ae
catnpu4atimn of, 5ts gras� r�r.eipCs from thr� sale vf e1ectrical energy wiihin F4rt
� 4�artti� as w�i�l as its accou�C� and'�recorc(s perE,ai;nir�9 Ga �F�`m��tfis by T�}�� Eleetr�ic to ���
ather°t�ufli�ipaliCi�s far the �urpose s�f uerifying thE appro�riaten�ss af the �ranehise
fee ur�dar f:i�e �°enew�d tranc���s�.
. � WintBd. rM r6oyr.leii �epsr
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