HomeMy WebLinkAboutCity Council Resolutions (R-00-1726)-12/31/2000
RESOLUTION R-OO-1726
A RESOLUTION AUTHORIZING THE PARTICIPATION OF THE CITY OF
COLLEYVILLE, TEXAS IN THE CAUSE OF ACTION STYLED THE CITY OF
DENTON, TEXAS VS. TEXAS UTILITIES COMPANY AND LONE STAR GAS
COMPANY OR SUCH OTHER CAUSES OF ACTION AS THE "STEERING
COMMITTEE OF CITIES PARTICIPATING IN THE TXU FRANCHISE LITIGATION"
MAY DETERMINE SEEKING DELINQUENT FRANCHISE FEES FROM TXU, LONE
STAR GAS AND OTHER ENTITIES ASSOCIATED WITH TXU; AUTHORIZING THE
EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on March 30, 2000 the 269th District Court awarded actual damages to the
Cities of Wharton, Galveston and Pasadena of $3.4 million and on April 4,
2000 punitive damages of $30 million against Houston Lighting & Power
Co. (HL&P) for underpaying franchise fees by excluding revenues from
the gross receipts upon which such fees are derived; and
WHEREAS, on December 12, 1999 an audit on behalf of the City of Denton estimated
TXU Electric and Lone Star Gas owed delinquent franchise fees in excess
of $1,000,000 based on findings that revenues similar to those at issue in
the HL&P case were excluded from the calculation of gross
receipts/revenues; and
WHEREAS, the law firms of Strasburger & Price, L.L.P. and Bucek & Frank, L.L.P.
have filed suit against TXU and Lone Star Gas on behalf of the City of
Denton in the 393rd District Court in Denton County for delinquent
franchise fees; and
WHEREAS, a consolidated action by cities in the TXU service area seeking delinquent
franchise fees will reduce duplication of effort and the attendant legal,
expert and court cost.
NOW THEREFORE BE IT RESOLVED BY THE CITY OF COUNCIL OF THE
CITY OF COLLEYVILLE, TEXAS:
See 1.
THAT the City of Colleyville agrees to participate with other similarly
situated Texas cities in the TU/LONE STAR GAS system and join the
City of Denton in pursuing causes of action against Texas Utilities
Company, Lone Star Gas Company and other entities associated with
TXU to collect delinquent franchise fees.
See 2.
THAT the City of Colleyville agrees to contribute $.50 for each individual
residing within its corporate limits based on the 1990 U.S. Census (except
for such portion of its population that may not be residing within the
Resolution R-00-1726
Page 2 of 2
TU/Lone Star Gas service area) or $2,000, whichever is more, to
underwrite the cost of legal and expert witness fees and related costs to
be expended on behalf of the cities in this matter, $.25 [or $1,000 if
applicable] being due on or before October 31, 2000, and the other $.25
[or $1000], if assessed, being due and payable on the date the Steering
Committee of Cities Participating in the TXU Franchise Litigation
authorizes such assessment.
See 3.
THAT Terry Leake, Finance Director or her designee shall be the City's
primary contact and liaison in this matter and such individual shall be
eligible to serve on "Steering Committee of Cities Participating in the TXU
Franchise Litigation" if she is elected by the cities participating in this
litigation. Notices to the City should be addressed as follows:
NamelTitle: Terry Leake, Finance Director
City/Address City of Colleyville, P.O. Box 185 Colleyville, Tx 76034
Telephone 817-577-7589 x 218 Fax 817-577-7555
Sec4.
THAT the liaison named above is authorized to take those steps
reasonable and necessary to comply with the intent of this resolution.
Sec 5.
THAT this resolution shall take effect immediately from and after its
passage.
AND IT IS SO RESOLVED.
Passed by a vote of, by a vote of
on this the day of
ayes, nays, and abstentions
, 2000. No acti on was taken by the Counci 1
after the Public Hearing.
ATTE/
C'20LLEYV'LLE:
Jean Harris, TRMC, CMC
City Secretary
Donna Arp
Mayor