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<br />J:\Attorney\Lisa\Resolutions\CiJRRENT\TXU Suit Settlement Res.wpd
<br />August 9, 2002
<br />RESOLUTION NO.
<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, ETAL.; MAKING OTHER FINDINGS AND
<br />PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
<br />EFFECTIVE DATE.
<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 Apri14, 2000, punitive damages
<br />of $30 million against Houston Lighting & Power Co. (HL&P) for underpaying franchise fees by
<br />excluding revenues from the gross receipts upon which such fees are derived; and,
<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 on
<br />findings that revenues similar to those at issue in the HL&P case were excluded from the calculation
<br />of gross receipts/revenues; and,
<br />WHEREAS, the law firms of Strasburger & Price, L.L.P. and Bucek & Frank, L.L.P. have
<br />filed suit against TXU and Lone Star Gas on behalf of the City of Denton in the 393rd District Court
<br />in Denton County for delinquent franchise fees; and,
<br />WHEREAS, in order to reduce duplication of effort and the attendant legal, expert, and court
<br />costs, the City Council of the City of Paris did heretofore, on October 9, 2000, by adoption of
<br />Resolution No. 2000-140, authorize participation in a consolidated action against TXLT and Lone Star
<br />by other cities in their service areas; and,
<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 />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
<br />TEXAS:
<br />Section 1. That the findings set out in the preamble to this resolution are hereby in all things
<br />approved.
<br />Section 2. That the form of the 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 />
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