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Item No. 8 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: ONCOR FRANCHISE AGREEMENT EXTENSION <br />DATE: July 6, 2016 <br />BACKGROUND: The City of Paris has historically granted Oncor Electric Delivery Company, <br />LLC or its predecessors a franchise to provide the delivery of electricity to residents and <br />businesses located within the City by operating in City rights -of -way. <br />STATUS OF ISSUE: The most recent franchise agreement with Oncor Electric Delivery <br />Company expired June 30, 2016. The staff had been in negotiations with Oncor for a new <br />franchise agreement, but some personnel changes and illnesses of key Oncor employees have <br />prevented us from meeting that deadline. Oncor and the City have agreed to continue to follow <br />the terms of the last franchise agreement until a new franchise agreement is approved by the City <br />Council and Oncor or October 1, 2016 whichever comes first. <br />BUDGET: This franchise produces approximately $1,350,000 in revenue annually. <br />RECOMMENDATION: Motion to approve a letter of understanding between Oncor and the <br />City of Paris. <br />