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Mr. Joe R. 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.
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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
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