ORD 2000-23TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2000-23
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS,
AUTHORIZING THE PARTICIPATION OF THE TOWN OF TROPHY
CLUB, 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; PROVIDING
FOR THE DESIGNATION AND AUTHORIZATION OF A PRIMARY
CONTACT OR LIAISON FOR THE STEERING COMMITTEE;
PROVIDING SEVERABILITY; PROVIDING FOR ENGROSSMENT AND
ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on March 30, 2000 the 269`1' 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 ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
SECTION I.
AUTHORIZATION
That the Town of Trophy Club, Texas, is authorized and hereby 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.
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SECTION 2.
EXPENDITURE OF FUNDS
That the Town of Trophy Club, Texas, 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 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 Cominittee of Cities Participating in the TXU Franchise Litigation authorizes
such assessment.
SECTION 3.
DESIGNATION AND AUTHORIZATION
That Paul Rosenberger, Assistant to Town Manager/MUD Manager (Donna Welsh as
second contact person), or his designee shall be the Town's primary contact and liaison in this
matter and such individual shall be eligible to serve on the "Steering Committee of Cities
Participating in the TXU Franchise Litigation" if he/she is elected by the cities participating in
this litigation and is authorized to take those steps reasonable and necessary to comply with the
intent of this Ordinance. Notices to the Town should be addressed as follows:
Name/Tithe: Paul Rosenberger
Town/Address: 100 Municitnal Drive, Trophy Club. Texas 76262
Telephone: 817/430-1911 Fax: 817/430-9312 E-mail: proseiiberger@tropi-iycltib.org
SECTION 4.
SEVERABILITY
The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are
severable, and if any section, paragraph, sentence, phrase, clause or word in this Ordinance or
application thereof to any person or circumstance is held invalid or unconstitutional by a Court of
competent jurisdiction, such holding shall not affect the validity of the remaining portions of this
Ordinance, and the Town Council hereby declares that it would have passed such remaining
portions of this Ordinance despite such invalidity, which remaining portions shall remain in full
force and effect.
SECTION 5,
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll
this Ordinance by copying the Caption Clause and Effective Date Clause in the minutes of the
Town Council and by filing this Ordinance in the ordinance records of the Town.
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SECTION G.
EFFECTIVE DATE
This Ordinance shall take effect immediately from and after its passage and approval, and
it is so ordained.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas
this the 26th day of October, 2000.
G
Marshall Engelbeelc, Mayor
Town of Trophy Club, Texas
ATTEST:
1
�-' I,, �':C'zz
Dian Coci, ,Town Secretary
Town of Trophy Club, Texas
[SEAL]
APPROVED AS TO FORM:
7 Q tA i CC,)
Town Attorney
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