HomeMy WebLinkAboutResolution 27121y``
~, A R~sol tion
No
AUTHORIZING CONTINUED PARTICIPATION OF THE CITY OF FORT
WORTH IN THE CAUSE OF ACTION SYTLED CITY OF DENTON, TEXAS VS
TEXAS UTILITIES COMPANY AND LONE STAR GAS COMPANY OR SUCH
OTHER CAUSES OF ACTION AS THE `STEERING COMMITTEE OF CITIES
PARTICIPATING IN THE TXU FRANCHISE LITIGATION" MAY DETERMINE
SEEKING DELINQUENT FRANCHISE FEES FROM TEXAS UTILITIES
COMPANY ("TXU") LONE STAR GAS AND OTHER ENTIT{ES ASSOCIATED
WITH TXU AND AUTHORIZING THE INCREASE IN EXPENDITURE OF
FUNDS FOR ATTORNEY AND EXPERT WITNESS FESS AND O`fHER COSTS
ASSOCIATED WITH SUCH LITIGATION
WHEREAS on or about November 21 2000 the law firm of Strasburger
& Price L.L.I' filed on behalf of the City of Denton a lawsuit in the 134th District
• Court in Dallas County Texas against TXU and Lone Star Gas for delinquent
franchise fees due to an incorrect calculation of gross receipts and revenues (the
`Lawsuit") and
WHEREAS on November 27 2000 the City of Fort Worth was added as
a party to the above litigation
• WHEREAS major issues in the Lawsuit are common to the City of Fort
Worth ("City") and other municipalities in the TXU service area and
WHEREAS a consolidated action by municipalities in the TXU service
area seeking delinquent franchise fees will reduce duplication of effort and the
attendant legal expert and court costs
• WHEREAS the City of Fort Worth passed Resolution 2681 on October
24 2000 authorizing participation in the Lawsuit and authorizing an initial
payment of $50 000 as an initial contribution toward the initial underwriting of
legal and expert witness fees and other costs associated with the Lawsuit or
other subsequent related cause of action
WHEREAS additional sums have become necessary to continue
underwriting costs associated with the lawsuit;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS THAT
1 The City hereby agrees to pay (i) $50 000 on or before March 15
2001 to the Treasurer of the Steering Committee of Cities Participating in the
TXU Franchise Litigation as an increase in contribution toward the underwriting
. of legal and expert witness fees and other costs associated with the Lawsuit or
other subsequent related cause of action and (ii) such additional sums as the
~. City Council may deem
aggregate amount not
corporate limits of the
Census
•
U
necessary in the City Council s sole discretion up to an
to exceed $0 50 for each individual residing within the
City of Fort Worth based on the 1990 United States
3 City Attorney David Yett or his designee shall be the City's primary
contact and liaison in this matter and shall be eligible to serve on the Steering
Committee of Cities Participating in the TXU Franchise Litigation if he is elected
by other participating municipalities.
4 Notices to the City should be addressed as follows City of Fort
Worth Attn Danny Reed Public Utilities Supervisor 1000 Throckmorton Fort
Worth TX 76102 with a copy to Gerald Pruitt, Deputy City Attorney at the same
address
ADOPTED this ~/„ day of March 2001
`~.~/ ~*~~.
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By
=r GloriaPearso City Secretary
APP O D ~Sr~f R AND LEGALITY
s,.
By ~ -_..__._
Gerald Pruitt, Deputy City Attorney APPROVED
~~1~~ CITY COUNCi~,
M&C ,'
MAR G 2001
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