HomeMy WebLinkAboutOrdinance No. 06-1660
CITY OF THE COLONY
ORDINANCE NO. 06- I /.pcb ()
AN ORDINANCE AMENDING EXISTING FRANCHISE
ORDINANCE BETWEEN THE CITY OF THE COLONY AND TXU
ELECTRIC DELIVERY COMPANY, A TEXAS CORPORATION, ITS
SUCCESSORS AND ASSIGNS, TO PROVIDE FOR A DIFFERENT
PAYMENT SCHEDULE; PROVIDING AN EXTENSION OF THE
FRANCHISE TERM; PROVIDING FOR TXU ELECTRIC DELIVERY
ACCEPTANCE; FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO
THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, TXU Electric Delivery Company, successor in interest to Oncor Electric
Delivery Company (hereinafter called "Company") is engaged in the business of providing
utility service within the City and is using the public rights-of-way within the City for that
purpose under the terms of a franchise ordinance heretofore duly passed by the governing
body of the City and duly accepted by Company; and
WHEREAS, pursuant to Agreement to Resolve Outstanding Franchise Issues dated
January 27, 2006, the City has requested and Company has agreed to amend said franchise
ordinance to provide for a different payment schedule and an extension of the term;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF THE COLOY, TEXAS: that
Section 1: The franchise, as amended, between the City and Company is amended as
follows:
A. A final payment will be made on or before June 1, 2006, based on each kilowatt
hour of electricity delivered by Electric Delivery during the twelve-month period
ending February 28, 2006, to each retail customer whose consuming facility's
point of delivery is located within the City's municipal boundaries. This payment
is for the rights and privileges granted under the franchise for the twelve month
period June 1,2006 - May 31,2007.
Effective September 1, 2006 the annual prospective payment schedule is hereby
changed to a quarterly prospective schedule as follows:
Payment Due Date
Basis Period
Privilege Period
(Following Year)
June I-Aug. 31
Sept. 1 - Nov. 30
Dec. 1 - Feb. 28 (or 29)
Mar. 1 - May 31
September 1
December 1
March 1
June 1
Mar. 1 - May 3 1
June I-Aug. 31
Sept. 1 - Nov. 30
Dec. 1 - Feb. 28 (or 29)
The first quarterly payment will be due and payable on or before September 1,
2006, based on the period beginning March 1, 2006 and ending May 31, 2006 for
the rights and privileges granted under the franchise during the period beginning
June 1, 2007 and ending August 31, 2007. Subsequent payments will be made on
a quarterly basis as provided in the above schedule. The final payment under this
Franchise will be made on or before June 1, 2031, based on the period beginning
December 1, 2030 and ending February 28, 2031, for the rights and privileges
beginning March 1,2032 and ending May 31,2032.
After the final payment date of June 1, 2031, Company may continue to make
additional quarterly payments in accordance with the above schedule. City
acknowledges that such continued payments will correspond to privilege periods
that extend beyond the term of this franchise and that such continued payments
will be recognized in any subsequent franchise agreement as full payment for the
relevant quarterly periods; and
B. The term of the franchise is hereby extended for an additional five years to expire
on May 31, 2032.
Section 2: In all respects, except as specifically and expressly amended by this
ordinance, the franchise heretofore duly passed by the governing body of the City and duly
accepted by Company shall remain in full force and effect according to its terms until said
franchise ordinance terminates as provided herein.
Section 3: This ordinance shall take effect upon its final passage and Company's
acceptance. Company shall, within sixty (60) days from passage of this ordinance, file its
written acceptance of this ordinance with the Office ofthe City Secretary.
Section 4: It is hereby officially found and determined that the meeting at which this
Ordnance is passed is open to the public as required by law and that public notice of the time,
place and purpose of said meeting was given as required.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, this the 5th day of June, 2006.
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Christie Wilson, City Secretary
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Bob Hager, ity Attorn