17 - ONCOR FRANCHISE AGREEMENTItem No. 17
memorandum
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: ONCOR FRANCHISE AGREEMENT
DATE: October 4, 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 and an extension was approved by the City Council through
September 30, 2016. The staff has been in negotiations with Oncor for a new franchise
agreement, but the agreement was only completed September 15th. A new extension agreement
was presented for the first reading and approved at the September 26th Council meeting.
The new franchise ordinance will require three public readings. The first reading was done at the
September 26th meeting. This is the second reading and the third reading will be at the October
24th City Council meeting.
BUDGET: This franchise produces approximately $1,350,000 in revenue annually.
RECOMMENDATION: Conduct first reading of the proposed Oncor Electric franchise
ordinance.