HomeMy WebLinkAboutContract 19726�
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�anuary 19, J993
riir, Joe R. 'Phtini�s�n
S�ni.or Vice Pres�.dP�t
`i'U hleet�i:c
P. t?. �c�x 97(?
�ort T�dorCh, Text�s '7520&-Q994
beztr M3: o 'T'hatn��ons
Fursuant ts� yaur r.elephc�ne �:r�nvexsation an �'u�sc�a�p
January 22, 19�3, with i�7a�e Adkins, C:ity .d3.�:tos�ney, �i2is l���er,
whcsa GxecaLeci by �'U 1Glectrz� apYd ��proveti by ttte Fort Sdor�la City
Cc��xncii, will eanstitut� an amendm�n[ to the �ranch�se �green�ana�
bet,�een 'the Cit�* �f Fort WorLPi and TT3 Electric (C;iLgP 5�cretar�r
Co��r.act I3o. ?23Ctj.
�is yr,,u knosvp the ourr�nt eerm c,f the franchis� agreement, �,
exte�dac3 k�y a l�tter. daL-ed (lctober 15, 1992, ss dcte �o ex�aire on
�Iarch 21, 1993. rn ar,ct�rciarsce witkt P�ragxagilz 3 of �he P�as�ohi�e
ac�reement and the pravis�ons of the iet��r, unles:s wxitt�n no�z�e
i� givea� by �ither parLy t�e the �ther party nat ieNs �hara sixty
days b�foxe i�arch 21, �993, then rhQ fraxzchise agreement shall be
aut<omaticaily r�nesved foz an adt3itional �eriod af t2n �rear�. 'Thi:s
2eLter �:s to e3zv� you ne�t3ce that excE�t as ntherwis� p.ravided
hexeiza thc� City de�es not eiPsiie far the f:ranchise a�x����� �.Q �:a��
auLomaticaliy renaw�d. ; ��\�.�•\�� o� � .���
: ��'���\: ���� \�
The L:i.�y and �'LJ �lectYzi. arP. r_tilrrently zn ;�� c�`����
��a. a�
co�a�rnS.�g c�rtain elemeuts r�f t}z� fraa�chis� agre�m�n�£ ����}�e�
party an�icipat�s that �h�se negotia�inns wzll be �e��n��e�U`a� �� ��°�
.., , . „
laefa�e �kt� six�ieth day pr�ar ��� March zi, i9'�33. �'1�����g��y....ts��'
de3ay the initiation of the sixty--day p�rzod, an<i ta aliow �he
�arties additional Y:iatze to 3legotiate zn c�o�ci �aith concarrainq
r�vz.sians to tiie fraachise �iq��e�mnnt, the C.zty of F�art Warth and
2U EJ.e�txic her�l�y aqree �c� hexel��* ain�zxd City 5ec�e�ary �ontrac�
fiic�. ?230 to prc�vide ti��t the cur�ent t�rm af ttas fr�nr_hise aqree-
n�erat, in�teacl of €�xpiring c�n Marc:h 2iF 1.993, wiil axo� es�pire usatil
�Trzne 2i, 1}R3, a.elcl ttt�t t;3zc� sixry-d�y �a�riod ie€exr�d to in
Paragraph 3 of �.tie franchi�c agr�ement wi37 reot laeqsn unk�3 sixt�
days priar tn Jaane 21: 1�93.
k'urthes, in tlie ev�rzt the Gity of P'ozt W�r.th ��lntizs �lae
franclai,e agre�:xtient to atatoma��.�a1ly r�s�ec,z for an aac�3t.ior�al te�ze--
a�� ?��e�nted on�� R2cyc3etl Papet�
Continued, Page 2
January 19, 1993
Mr. Joe R. Thompson
TU Electric
year period, effective June 21, 1993, the City of Fort Worth and
TU Electric hereby agree as follows:
As part of the consideration for allowing automatic renewal
of the existing franchise, TU Electric hereby additionally agrees
that, if TU Electric shall at any time after the effective date of
this renewed franchise enter into a franchise in which it agrees
to pay a franchise or street rental fee (other than by succession
or assignment of an existing franchise through the acquisition by
merqer or otherwise of another utility), renew or extend a fran-
chise ordinance agreement adopted by any municipality on or after
the effective date of this renewed franchise (other than a short
term [not to exceed three (3) years in the aggregate to be
extended by the City in the event that the City determines that TU
Electric and such other municipality are negotiating in good
faith] extension of pre-existing franchise agreement pending
negotiation of a new franchise agreement) and that franchise
agreement or street rental ordinance provides for payment to the
municipality for the use of said municipality's public rights-of-
way in an amount, however characterized, higher than three (3)
percent of TU Electric�s gross receipts (from sale of electric
energy} in said municipality, then TU Electric's payments under
this renewed franchise shall be increased to that proportionately
higher rate of TU Electric's said gross receipts within the City
of Fort Worth. Such increased payment to the City shall be
subject to the same method or terms of collecting of such fee from
TU Electric's customers. TU Electric shall notify the City of
such increase within thirty (30) days of the other payments's
effective date. Collections of the franchise fee and payments to
the City will be based on such higher rate from the first date of
the first month next following the date the City accepts and
authorizes the increase on the same terms as those in effect for
the other municipality. The collection of the franchise fee and
the increased payment shall continue until expiration of the term
of this renewed franchise, or until the expiration of the fran-
chise agreement of such other municipality, whichever is earlier.
Provided that nothing herein shall alter or affect the pattern of
the dates upon which the quarterly payments specified in the
franchise (Contract No. 7230, executed on August 21, 1972) are
payable or the period to which each of said payments are referable
as provided therein.
Further, a
renewal of the
available for
reasonable timE
records reflect
of,:its gross x
the corporate b
s part of the consideration for allowing automatic
existing franchise, TU Electric agrees to make
audit by the City, at TU Electric's offices at
�s and upon reasonable notice, its accounts and
ing the amounts of, the basis for the computation
�eceipts from the sale of electrical energy within
oundaries of the City of Fort Worth as well as its
Cont�nued, Paye 3
Janu�ry 19, 1993
�r.. S�� R. �hnm�son
TU �'IP_�L'r1C
�ccouii�� ar�d recorr�s �erta3ziing to the paymen�s made by TU
�1e�Lr�c io c�ther mcanici.pal.si-ies for tFie purpase nf verifyiny the
a�g�rcap�xafieness o� the iranehzse i�� payak�,le unc3ex� �tli� r�xi�wec�i
€xanehi��.
Tf Tu Electric �zyr�es �o the term� ex�iressed in ih�s letter,
t:hen please exr-:cut.� �:hi5 letter an the signa�ure izne bclava. U�an
apg�roval of �hzs a�r�es�tent and ainendrnent l��r the Fo�t �ea�-th City
Gnia�i�;il, such agre�n��a3t �nti �m€�xac3me>nt u?i:11 then b�ectime effective.
Acknocalectg�ci Z3y �nci :�yreed to=
By 9 �� ! a� �
3 i2. 'Phozttpsc+n � �.
St�nies�° V�ce Presi�i�nt
�'U Electxzc
�i'i"i�E ST •
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City Sc�cretaxy
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City of Fort Worth, Texas
Mayor and Council Communiccition
SUBJECT
RECOMMENDATION:
C-13671
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 'ty Secretary Contract No. 7230).
�ISCUSSION:
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 af 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 will
not begin 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
f.ee under the renewed franchise.
�� � Prinmd nn mrvnlan roner
City of Fort Worih, Texas
Mayor c�nd Counc�il Communicatian
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