HomeMy WebLinkAboutResolution 2681A Resolution
NO ~G~~ '.
AUTHORIZING PARTICIPATION OF THE CITY OF FORT WORTH IN THE
CAUSE OF ACTION STYLED 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 ENTITIES ASSOCIATED WITH TXU, AND AUTHORIZING
THE EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES
AND OTHER COSTS ASSOCIATED WITH SUCH LITIGATION
WHEREAS, on or about June 7 2000 the law firms of Strasburger & Pace L L P
and Bucek & Frank, L L P filed on behalf on the City of Denton a lawsuit in the 393`d
District Court in Denton 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, mayor issues in the Lawsuit are common to the City of Fort Worth
("City") and other municipalities m the TXU service area and
WHEREAS, a consolidated action by municipalities m the TXU service, area
seeking delinquent franchise fees will reduce duplication of effort and the attendant legal
expert and court costs
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT
1 The City hereby agrees to participate with other similarly situated Texas
municipalities and tom the City of Denton m pursuing the Lawsuit or other cause of action
against TXU Lone Star Gas Company and other entities associated with TXU to collect
delinquent franchise fees
2 The City hereby agrees to pay (i) $50 000 on or before October 31 2000 to
the Treasurer of the Steering Committee of Cities Participating m the TXU
Franchise Litigation 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 and (ii) such additional sums as the City Council may deem necessary in
the City Council s sole discretion, up to an aggregate amount not to exceed $0 50 for each
individual residing within the corporate limits of the City of Fort Worth based on the 1990
United States Census
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 m 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 Peter Vaky Assistant City Attorney at the same address
ADOPTED this a~ y day of October 2000
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~~Gloria Pearson, City Secretary
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APPROVED AS TO FORM AND LEGALITY
By
Peter Vaky As stant City Attorney
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CITY COUNGlL
OCT 24 2000
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City of Fort Worth, Taos