HomeMy WebLinkAboutRes 00-43 Approving an Agreement with TXU Gas and TXU ElectricTOWN OF WESTLAKE
RESOLUTION NO. 00-43
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE, TEXAS, APPROVING A LETTTER AGREEMENT WITH TXU
GAS AND TXU ELECTRIC REGARDING CALCULATIONS OF FRANCHISE
FEE PAYMENTS AND METHODOLOGY.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN
OF THE TOWN OF WESTLAKE, TEXAS:
SECTION 1: That the Board of Aldermen of the Town of Westlake, Texas, does
hereby approve a letter agreement with TXU Gas and TXU Electric regarding
calculations of franchise fee payments and methodology attached at Exhibit A.
PASSED AND APPROVED ON THIS 23rd DAY OF OCTOBER, 2000.
ATTEST:
Scott Bradley,"Mayor Or
Gin&r Crosswy, TAvh Secretary Tre4t O. Petty, To Manager
ft, TXU
NF,:
Electric & Gas
1601 Bryan Street
Dallas,TX 75201-3411
Tel: 214 812 4736
Fax: 214 812 4758
dfarell@txu.com
H. Dan Farell
President
Distribution
Mr. Trent Petty
City Manager
Town of Westlake
Westlake, Texas
Re: City of Denton v. TXU Gas Company and TXU Electric Company
Dear Mr. Petty:
October 24, 2000
As you are aware, the City of Denton has filed a lawsuit against TXU Electric (formerly Texas
Utilities Electric Company) and TXU Gas (formerly Lone Star Gas Company) asserting that various
categories of revenue should have been included in the revenue on which TXU Electric and TXU Gas
franchise fee payments are calculated. Because we at TXU Electric and TXU Gas strongly believe we have
properly calculated the franchise fee payments made to Denton, as well as all of the other cities in our service
areas, and have included all of the revenue that is to be included under the franchise fee agreements with the
City of Denton, TXU Electric and TXU Gas intend to vigorously defend the lawsuit being pursued by
Denton.
We are aware that your City has been solicited by Denton to join the litigation and also to assert
claims against TXU Electric and TXU Gas. We at TXU Electric and TXU Gas want you to know that we
do not believe that you need to bring a lawsuit with regard to this issue. It is the position of TXU Electric
and TXU Gas that, if there is a final judgment holding that additional categories of revenue should have been
included in the Denton franchise fee calculation or a settlement in which TXU Electric and TXU Gas agree
to include additional categories of revenue, TXU Electric and TXU Gas will, if agreed to by your City, apply
that same standard established in the City of Denton's lawsuit for the same period of time to the calculation
of franchise fee payments to your City, and provide the same benefits to your City that it would have received
if it had intervened in the litigation referenced herein.
These assurances and agreement are given in consideration of your City's agreement not to
participate as a party in any litigation against TXU Electric and/or TXU Gas related to the calculation of past
franchise fees.
The undersigned has the corporate authority to bind TXU Electric and TXU Gas to the agreements
contained herein. If this letter accurately sets forth our agreement, please sign in the place provided below.
We further understand that the City will take all action necessary to effect this agreement, including the
passage of an appropriate resolution ratifying this agreement.
APPROVED AND AGREED:
Town of Westlake, Texas
By
Authorized Offtci
Sir ,
H. n Fa 11
Date: Itci