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Res 103-93 7/20/1993RESOLUTION NO. 473-73 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS AMENDING THE EXISTING STREET AND ALLEY RENTAL AGREEMENT BETWEEN THE CITY AND TEXAS UTILITIES ELECTRIC COMPANY, TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY TEXAS UTILITIES ELECTRIC COMPANY; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, Texas Utilities Electric Company (hereinafter called "TU Electric") is engaged in the business of providing electric utility service within the City and is using the public streets, alleys, grounds and rights-of-ways within the City for that purpose under the terms of the street and alley rental agreement heretofore duly executed by the governing body of the City and duly accepted by TU Electric; and, WHEREAS, TU Electric has, pursuant to a separate street and alley rental agreement, been paying to the City a sum equal to three (3%) percent of its gross receipts from the sale of electric power and energy within the City for the rights and privileges set forth in said street and alley rental agreement, and, in addition thereto, has reimbursed the City for its ratemaking expenses pursuant to Section 24 of the Public Utility Regulatory Act; and, WHEREAS, the City and TU Electric desire to amend said street and alley rental agreement to provide for a different consideration to consist of a sum equal to four (4%) percent of its gross receipts from the sale of electric power and energy Page of Pages Agenda Item No. 2 within the City, which different consideration includes, among other things, TU Electric's obligation to reimburse the City for its ratemaking and other regulatory expenses to be incurred by the City involving the regulation of TU Electric. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: SECTION 1. That the consideration payable by TU Electric for the rights and privileges granted to TU Electric by the street rental agreement heretofore duly passed by the governing body of this City and duly accepted by TU Electric is hereby changed to be four (4%) percent of its gross receipts from the sale of electric power and energy within the corporate limits of the City, said changed percentage to be applied to said gross receipts beginning on June 1, 1993 , and being payable as specified in said street rental agreement and based upon the same time periods as specified in said street rental agreement and being payment for the said rights and privileges during the period specified in said street rental agreement, said payment being in lieu of and shall be accepted as payment for all of TU Electric's obligations to pay municipal charges, fees, rentals, pole rentals, wire taxes, inspection fees, easement taxes, franchise taxes, certain regulatory expenses under Section 24 of the Public Utility Regulatory Act or any similar or successor law, or other charges and taxes of every kind, except ad valorem taxes, sales and use taxes, and special taxes and Page of Pages Agenda Item No. 3 assessments for public improvements. For purposes of verifying the amount of payments due hereunder, TU Electric books shall at all reasonable times be subject to inspection by the duly authorized representative of the City. SECTION 2 . TU Electric shall make a one-time payment of approximately Three Hundred Eighty Seven Thousand Six Hundred Three and 29/100 ($387, 603 .29) Dollars for the purpose of making the changed consideration as specified in Section 1 hereof effective on June 1, 1993, without altering the payment dates specified in this agreement, said one-time payment being due and payable thirty (30) days after TU Electric's acceptance of this resolution as provided in Section 6 hereof. This said adjustment shall be calculated as follows: (a) TU Electric shall determine the monthly average of its gross receipts from the gross sale of electric power and energy within the City during the period upon which the next street rental agreement payment due to the City following June 1, 1993 , is based; (b) the said monthly average of its said gross receipts shall be multiplied by 1% (0.01) ; and (c) the product so calculated shall be multiplied by the number of whole months from June 1, 1993, through the last day of the last month of the period for which the next street rental payment due to the City following June 1, 1993 , is made. The amount of said adjustment shall be added to the said next street rental agreement payment following June 1, 1993, determined in accordance with the Page of Pages Agenda Item No. 4 provisions of said street rental agreement as was in effect prior to this amendment. SECTION 3. Notwithstanding anything to the contrary in Section 1 hereof, if TU Electric files general rate cases and the City incurs cumulative expenses, otherwise reimbursable by TU Electric under Section 24 of the Public Utility Regulatory Act or similar or successor law, in excess of Four Million 4, 000, 000) Dollars, then in such event, TU Electric shall reimburse all of the expenss incurred by the City in connection with all general rate cases filed during the period ended fifteen (15) years from the effective date hereof in excess of said Four Million ($4, 000, 000) Dollars. The term "general rate case, " as used in this Section, means a rate case initiated by TU Electric in which it seeks to increase its rates charged to a substantial number of its customer classes in the City and elsewhere in its system, and in which TU Electric's overall revenues are determined in setting such rates. City agrees to exercise reasonable best efforts, considering the facts and circumstances, to keep its expenses on average to under One Million ($1, 000, 000) Dollars per general rate case. SECTION 4. Notwithstanding the provisions of Section 1 hereof, TU Electric will continue to reimburse the City's ratemaking expenses, if any, in connection with the appeal and any remand of Public Utility Commission of Texas Docket No. 9300 that are otherwise reimbursable under Section 24 of the Page of Pages Agenda Item No. 5 Public Utility Regulatory Act, and will continue to reimburse the City's ratemaking expenses, if any, in connection with Public Utility Commission of Texas Docket No. 11735 that are otherwise reimbursable under Section 24 of the Public Utility Regulatory Act to the extent that said ratemaking expenses are incurred through the entry of the last action by the Public Utility Commission of Texas (i.e. , the said Commission's Order overruling the last motion for rehearing) in said Docket No. 11735; the City hereby agrees that any ratemaking expenses incurred in connection with said Docket No. 11735 that the City incurs on appeal of said order will be the City's sole responsibility and further agrees -- in the event the City is a participant in the joint intervention of cities managed by the Steering Committee of TU Electric Service Area Cities intervening in Docket No. 11735, that the City decides to continue to participate with the Steering Committee in such appeal of said order, and TU Electric is required to reimburse said Steering Committee for ratemaking expenses under Section 24 of the Public Utility Regulatory Act that are incurred on appeal of said order in Docket No. 11735 -- to reimburse TU Electric the City's share of reimbursable expenses related to said appeal and owed by TU Electric to said Steering Committee determined by the methodology chosen by the said Steering Committee (the City to notify TU Electric of the method so chosen by the Steering Committee prior to the submission of an Page of Pages Agenda Item No. 6 invoice by the Steering Committee for the payment by TU Electric of said reimbursable expenses related to said appeal) . SECTION 5. This resolution shall take effect from and after its final passage and TU Electric's acceptance. TU Electric shall, within fifteen (15) days from the passage of this resolution, file its written acceptance of this resolution with the Office of the City Clerk in substantially the following form: To the Honorable Mayor and City Council: Texas Utilities Electric Company (TU Electric) , acting by and through the undersigned authorized officer, hereby accepts, on this the day of 1993, Resolution No. amending the current street and alley rental agreement between the City and TU Electric. TEXAS UTILITIES ELECTRIC COMPANY By: President SECTION 6. That all previous street rental agreements existing between the City and Texas Utilities Electric Company or its predecessors to the extent that they are inconsistent with the terms of this agreement are hereby repealed. SECTION 7. It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law, and that public notice of the time, place and purpose of said meeting was given as required. Page of Pages Agenda Item No. ef 7 PASSED AND APPROVED this the o/-G1day of 1993 . M A OR ATTEST: jbli42/7411 ,i4:991-47 Cit lrk APPROVED AS TO FORM: ity Attorney Page of Pages Agenda Item No. y: ,