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06-A TXU Franch Ext 2nd Rdg DRAFT F:ATIORNEY\ORDWORK\CURREN1\ !XU Electric Delivery Extend Franchise Ord July 5, 2005 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT ORDINANCE NO. 2001-033, WHICH GRANTED A FRANCHISE FOR ELECTRIC SERVICE TO TEXAS UTILITIES ELECTRIC COMPANY, PREVIOUSLY KNOWN AS ONCOR ELECTRIC DELIVERY COMPANY, NOW KNOWN AS TXU ELECTRIC DELIVERY COMPANY, BE EXTENDED FORA PERIOD OF TWELVE (12) MONTHS PENDING NEGOTIATION OF A NEW FRANCHISE; PROVIDING FOR CONTINUED COMPENSATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS WITH OTHER ORDINANCES; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Paris and TXU Electric Company, previously known as Oncor Electric Delivery Company, now known as TXU Electric Delivery Company, have previously entered into Ordinance No. 2001-033 granting TXU Electric Company a franchise to provide electric service within the city limits of the City of Paris; and, WHEREAS, the aforesaid franchise agreement has previously been extended for a period of one (1) year to allow the City and the Company the opportunity to assess the impact of such regulatory changes prior to negotiation of a new franchise and will expire by its own terms in July of2005; and, WHEREAS, as a result of significant changes in the State of Texas regulatory scheme for regulating electric service providers within the State of Texas, franchise provisions currently existing in franchise agreements may no longer be applicable or may require significant revision; and, WHEREAS, similarly because of the changes in regulations applicable to the transmission and distribution of electric power within the State of Texas, the scheme for remitting compensation to municipalities for the use of their easements and rights-of-ways in providing such electric service is subject to review and possible revision; and, WHEREAS, Company annually prepays the electric franchise fee in accordance with the mutual agreement of City and Company but contrary to the written language of said Ordinance; and, WHEREAS, Company reaffirms its agreement to continue to negotiate in good faith with City for development and approval of a new franchise agreement, and City and Company desire to extend said Ordinance; and, WHEREAS, as a result of these significant changes, and the accompanying uncertainty with regard to appropriate franchise revisions, the City of Paris and Oncor Electric Delivery Company ~ desire to extend their current -franchise for an additional twelve (12) months to enable the respective parties to negotiate and discuss revisions for a new franchise agreement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this ordinance are hereby in all things approved. Section 2. That Ordinance No. 2001-033, granting a franchise to Texas Utilities Electric Company, subsequently known as Oncor Electric Delivery Company, now known as TXU Electric Delivery Company, to provide electric power service within the city limits of the City of Paris, Texas, is hereby extended by the mutual consent of the parties for an additional term of twelve (12) months to end on July 12,2006. Section 3. That if for any reason the payment of a franchise fee pursuant to Section 17 of Ordinance No. 2001-033 shall in any way or at any time be found improper or inappropriate for any reason, then the payment of such compensation in the same amount as provided in said Section 17 shall be considered a street use fee pursuant to Section 273.007 of the Texas Local Government Code or other applicable state laws and shall be due and payable in accordance with the terms of Section 17 through July 12, 2006 Section 4. In lieu of the payment schedule set forth in Section 17(a) of Ordinance 2001-033, Company shall continue to pay, and city shall continue to accept, a franchise fee payment to be prepaid June lOon an annual basis in the amount as calculated pursuant to said Section, until such time as a new franchise ordinance becomes effective. Section 5. That all of the terms and provisions of Ordinance No. 2001-033, save and except as in conflict with the terms and provisions of this ordinance, shall remain in full force and effect for the additional term as provided herein. Section 6. That the terms and provisions of this ordinance are severable and the invalidity of any provision should not affect the validity of the remaining provisions thereto. Section 7. That this ordinance shall become effective on July 12,2005; provided, however, that should a different effective date be required by law, then such effective date shall apply; provided further, however, that the terms and provisions of Section 3 herein shall in any event be effective July 12, 2005. Section 8. That this ordinance was introduced, read, and passed on first reading on July 11, 2005, at a regular meeting of the City Council of the City of Paris; on second reading at a regular meeting of the City Council on July 25, 2005; and final reading at a regular meeting of the City Council on August 22,2005, the same being three separate regular meetings of the City Council of the City of Paris, the last being not less than thirty (30) days from the first. II PASSED AND ADOPTED this 22nd day of August, 2005. Curtis Fendley, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Larry W. Schenk, City Attorney - .