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<br />RESOLUTION NO.
<br />
<br />1001-117
<br />
<br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
<br />PARIS, TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF
<br />A COMPROMISE, SETTLEMENT, AND RELEASE AGREEMENT IN THE
<br />CAUSE OF ACTION STYLED CITY OF DENTON, TEXAS, ET AL. VS.
<br />TEXAS UTILITIES COMPANY, ET AL.; MAKING OTHER FINDINGS AND
<br />PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
<br />EFFECTIVE DATE.
<br />
<br />WHEREAS, on March 30,2000, the 269th District Court awarded actual damages to the
<br />Cities of Wharton, Galveston, and Pasadena of $4.2 million, and on April 4, 2000, punitive
<br />damages of $30 million against Houston Lighting & Power Co. (HL&P) for underpaying franchise
<br />fees by excluding revenues from the gross receipts upon which such fees are derived; and,
<br />
<br />WHEREAS, on December 12, 1999, an audit on behalf of the City of Denton estimated
<br />TXU Electric and Lone Star Gas owed delinquent franchise fees in excess of $1,000,000 based
<br />on findings that revenues similar to those at issue in the HL&P case were excluded from the
<br />calculation of gross receipts/revenues; and,
<br />
<br />WHEREAS, the law firms of Strasburger & Price, L.L.P. and Bucek & Frank, L.L.P.
<br />have filed suit against TXU and Lone Star Gas on behalf of the City of Denton in the 393rd
<br />District Court in Denton County for delinquent franchise fees; and,
<br />
<br />WHEREAS, in order to reduce duplication of effort and the attendant legal, expert, and
<br />court costs, the City Council of the City of Paris did heretofore, on October 9,2000, by adoption
<br />of Resolution No. 2000-140, authorize participation in a consolidated action against TXU and
<br />Lone Star by other cities in their service areas; and,
<br />
<br />WHEREAS, the parties have reached a settlement, and it is deemed appropriate that the
<br />Compromise, Settlement, and Release Agreement, attached hereto as Exhibit A, be in all things
<br />approved, and that the Mayor be authorized to execute the same; NOW, THEREFORE,
<br />
<br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
<br />TEXAS:
<br />
<br />Section 1. That the findings set out in the preamble to this resolution are hereby in all
<br />things approved.
<br />
<br />Section 2. That the form ofthe Compromise, Settlement, and Release Agreement in Cause
<br />No. 00-9383 in the 134th Judicial District Court of Dallas, County, Texas, styled City of Denton,
<br />Texas, et ai. v. TXU Eiectric Company, et ai., attached hereto as Exhibit A, be, and the same is
<br />hereby, in all things approved.
<br />
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