Laserfiche WebLink
City Council Meeting <br />May 10, 2001 <br />Page 6 <br />requirements of the City Engineer. The motion carried 7 ayes, 0 nays. <br />Mayor Pfiester called for the second reading of a new franchise agreement <br />with TXU Electric, Inc. <br />City Attorney Schenk advised th at at the previous City Council meeting <br />they adopted a Franchise Agreement with TXU Electric on first reading, <br />and at that time, he indicated that there would be additional negotiations <br />between the city and the company. City Attorney Schenk further advised <br />that the Franchise Agreement that he is presenting tonight differs from <br />the original in two ways. He said that first there was section 26 of the <br />previous Franchise Agreement, which calls for energy audits to be <br />st st <br />performed by the company after the December 31 or January 1 date in <br />which deregulation goes into effect. This particular company, which is the <br />distributor, will no longer be ab le to perform those kind of services <br />because they are considered competitive services. City Attorney Schenk <br />advised that this clause has b een removed from the latest version of the <br />Franchise Agr e ement. City Attorney Schenk further advised that this <br />Franchise Agreement is for a three year period. He discussed with the <br />company the topic of including a most favored nation clause, which means <br />that if they enter into agreements with other cities that have terms more <br />favorable than the City of Paris’, they would offer those terms to the City <br />of Paris. City Attorney Schenk said that they did not want to agree to that <br />because they felt it was very difficult to administer, and that he did not <br />disagree, but at the same time, h e was concerned because of the new <br />statutes going into effect and what the impact of this new legislation will <br />be on electric power and electric access to electric power in general. As a <br />consequence, both he and the company agree that it is appropriate to have <br />the shortest reasonable term on the franchise, which is three years. <br />City Attorney Schenk recommended that the City Council adopt this <br />revised Franchise Agreement on second reading. <br />