08 - ONCOR FRANCHISE AGREEMENT EXTENSIONItem No. 8
memorandum
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ONCOR FRANCHISE AGREEMENT EXTENSION
DATE: July 6, 2016
BACKGROUND: The City of Paris has historically granted Oncor Electric Delivery Company,
LLC or its predecessors a franchise to provide the delivery of electricity to residents and
businesses located within the City by operating in City rights -of -way.
STATUS OF ISSUE: The most recent franchise agreement with Oncor Electric Delivery
Company expired June 30, 2016. The staff had been in negotiations with Oncor for a new
franchise agreement, but some personnel changes and illnesses of key Oncor employees have
prevented us from meeting that deadline. Oncor and the City have agreed to continue to follow
the terms of the last franchise agreement until a new franchise agreement is approved by the City
Council and Oncor or October 1, 2016 whichever comes first.
BUDGET: This franchise produces approximately $1,350,000 in revenue annually.
RECOMMENDATION: Motion to approve a letter of understanding between Oncor and the
City of Paris.
Y A
Ritchie Sturgeon
Counsel
June 27, 2016
Attorney Stephanie H. Harris
City Attorney
City of Paris, Texas
P.O. Box 9073
Paris, Texas 75460
Dear Attorney Harris,
As the parties have discussed, the existing Franchise between the City of Paris (the "City") and TXU Electric
Delivery Company (now Oncor Electric Delivery Company LLC [ "Oncor "]) adopted by Ordinance No. 2006 -021
will expire on June 30, 2016. While the City and Oncor have been diligently and in good faith negotiating a
new franchise agreement, they will not be able complete the negotiations before June 30, 2016.
Accordingly, the City and Oncor will continue to operate under the terms of the current Franchise between the
parties adopted in Ordinance No. 2006 -021 until October 1, 2016 or until the parties enter into a new franchise
agreement (i.e., adopted by City Council and accepted by Oncor), whichever comes first. This letter
agreement between the City and Oncor reflects the parties' mutual agreement to continue to be governed by
and adhere to the terms of the existing Franchise as noted in this paragraph. Furthermore, the City and Oncor
agree that original signature(s) or, alternatively, facsimile or e-mail copies of signature(s) are valid for purposes
of evidencing this letter agreement, which may be executed in multiple counterparts.
Accepted:
Oncor Electric Delivery Company LLC
By:—,% �✓
Mark Webb, Manager of Regulatory Affairs
Sincerely,
Ritchie Stur eon
Counsel for Oncor
Accepted:
City of Paris, Texas
0
A.J. Hashmi, Mayor
Oncor
1616 Woodall Rodgers Freeway
Dallas, Texas 75202
Tel: 214.486.6345
dtchie.sturgeon@oncor.com