2000-140-RES AUTHORIZING THE PARTICIPATION OF THE CITY OF

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RESOLUTION NO. 2000- 140 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, AUTHORIZING THE P ARTICIP A TION OF THE CITY OF PARIS, PARIS, TEXAS, IN THA T CAUSE OF ACTION STYLED THE 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 LmGA TION" MAY DETERMINE, SEEKING DELINQUENT FRANCHISE FEES FROM TXU, LONE STAR GAS, AND OTHER ENTITIES ASSOCIATED WITH TXU; AUTHORIZING THE EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on March 30, 2000, the 269th District Court awarded actual damages to the Cities of Wharton, Galveston, and Pasadena of$4.2 million and on April 4, 2000, punitive damages of $30 million against Houston Lighting & Power Co. (HL&P) for underpaying franchise fees by excluding revenues from the gross receipts upon which such fees are derived; and, WHEREAS, on December 12,1999, an audit on behalf of the City of Denton estimated TXU Electric and Lone Star Gas owed delinquent franchise fees in excess of$I,OOO,OOO based on findings that revenues similar to those at issue in the HL&P case were excluded from the calculation of gross receipts/revenues; and, WHEREAS, the law firms of Strasburger & Price, L.L.P. and Bucek & Frank, L.L.P. have filed suit against TXU and Lone Star Gas on behalf ofthe City of Denton in the 393rd District Court in Denton County for delinquent franchise fees; and, WHEREAS, a consolidated action by cities in 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 PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City of Paris, Paris, Texas, agrees to participate with other similarly situated Texas cities in the TUlLone Star Gas system and join the City of Denton in pursuing causes of action against Texas Utilities Company, Lone Star Gas Company, and other entities associated with TXU to collect delinquent franchise fees. Section 3. That the City of Paris, Paris, Texas, agrees to contribute $1.00 for each individual residing within its corporate limits based on the 1990 U. S Census (except for such portion of its population that may not be residing within the TUlLone Star Gas service area), to underwrite the cost