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City Council Minutes <br />September 13, 2000 <br />Page 9 <br />A motion was made by Mayor Pro Tem Manning, seconded by Councilman <br />Carter for adoption of the ordinance. The motion carried 6 ayes, 0 nays. <br />Resolution No. 2000-130, resolving that a meeting be, and the same is hereby, <br />called for the 26th day of September, 2000, at 6:00 p. m., at the Red River <br />Valley Fairgrounds in the Community Exhibit Building, 590 East Center Street, <br />Paris, Texas, to vote on the tax rate, was presented. A motion was made by <br />Councilman Bell, seconded by Councilman McCarthy, for approval of the <br />resolution. The motion carried 6 ayes, 0 nays. <br />Mayor Pfiester announced that the next item on the agenda is a resolution <br />approving the City of Paris participation in the Denton v. TXU Utilities <br />Company, et al., case relating to delinquent franchise fees. <br />City Attorney Schenk advised the City Council that the city had been furnished <br />information that summarizes the status of the particular litigation plus <br />supplemental background material that has been forwarded to the City of Paris <br />from the attorneys representing the City of Denton, and those materials are an <br />expanded version of his agenda information sheet. City Attorney Schenk <br />explained that the problem is, as summarized in the agenda information sheet, <br />the City of Denton has had a utility audit performed on certain components of <br />the franchise fee as they are paid by TXU. He also advised that there was a <br />case that was decided in Houston involving three cities served by Houston <br />Lighting and Power, and in that particular litigation those three cities received <br />a jury award totaling approximately $34 million dollars, which included about <br />$30 million dollars in punitive damages. City Attorney Schenk said there is <br />information from Bucek & Frank, L.L.P. with regard to this matter and <br />indicated that there are going to be differences between this litigation and that <br />brought by HL&P. The two companies are not the same companies and their <br />practices are not the same, but the approach or the way certain items are done, <br />in the opinion of the consultant hired by the City of Denton, may reflect an <br />under payment of franchise fees to cities who do receive service from TXU <br />Electric and TXU Gas. City Attorney Schenk pointed out that HL&P litigation <br />