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City Council Minutes September 13, 2000 Page 10 was one involving primarily an electric supplier. TXU is both electric and gas supplier, so there are potentially additional issues that were not addressed in the HL&P litigation that are also not addressed by the company with regard to potential claims about the franchise fees paid by TXU Gas. City Attorney Schenk noted in the company's material that there were components, according to the consultants hired by the City of Denton, that have a commonality between the TXU franchise fee practices and the HL&P franchise fee practices. City Attorney Schenk said he thinks that reasonable men an women differ as to who is right on that point and many times it takes a court of law to resolve that issue, and that may be where we are with regard to this. He said another situation to keep in mind is, beginning in the near future the city will not be paid a franchise fee on this same basis. City Attorney Schenk said he did look at the City of Denton's franchises, comparing the important language to the language in the City of Paris's franchises, and they are in a legal sense in his view indistinguishable. City Attorney Schenk advised that what you surmise and presume is that if the audit performed on the City of Denton's franchises was similarly performed on the City of Paris's franchises there would be a similar conclusion as to how the fees should have been paid. The City Attorney emphasized the fact that there is a risk to this, and the risk is primarily the City of Paris's share in cost of the litigation. It is litigation in a state court and not in administrative proceedings, so there will have to be a sharing of the attorney's fees in that litigation. City Attorney Schenk said they have asked for a total and maximum assessment of $1.00 per capita for each city participating, which is approximately $25,000.00, but only one-half now which would be $12,500.00. City Attorney Schenk said the reason he is bringing this to the City Council early is that amount could be paid from the current year budget, which would accommodate that amount and would not have an impact on our future year budget. City Attorney Schenk told the City Council that the City of Paris could withdraw from the litigation at any time they so desire, and that will be the end of it. City Attorney Schenk advised that if the city reaches a separate accommodation with TXU, and of course, there are going to be negotiations in the very near future regarding a new franchise, then as part of the process of resolving any differences over this issue the city would be out of