09/16/2002-CC-Agenda Packet-Regular1.
2.
3.
4.
AGENDA
CITY COUNCIL
MONDAY, SEPTEMBER l6, 2002
7:00 P.M.
Call Meeting to Order, Invocation, Pledge of Allegiance.
a) Approve Minutes:
b) Disbursements
Citizen's Input.
CONSENT AGENDA
September 3, 2002
Presentation Regarding Commercial Property Along Stemmons Freeway.
5. Consider and Possible Action on Proposal from DTN Speednet to Place Antennas on
one of the City Towers in Exchange for Internet Service,
6.
7.
8.
9.
10.
11.
Consider and Possible Action on Ordinance #09-25-02 -Amending the Solicitation
Ordinance.
Consider and Possible Action on Ordinance #09-26-02 -Amending the City of Sanger
Zoning Map. (Chicken Express)
Consider and Possible Action on the Proposed Compromise Settlement Agreement with
TXU Gas Company.
Consider and Possible Action Regarding Ordinance #09-27-02 -Adopting the Budget
for FY 2002/2003.
Consider and
Adjourn.
28-OZ -Adopting Tax Rate.
Rosalie Chavez, City Secretary
Date &Time Posted
This facility is wheelchair ace6�ible��a�W accessible parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City
Secretary's office at (940) 458= 7930 for further information.
MINUTES: CITY COUNCIL
SEPTEMBER 3, 2002
PRESENT: Mayor Tommy Kincaid, Councilman Andy Garza, Councilman Jimmy Evans,
Councilman Glenn Ervin, Councilman Joe Higgs, Councilman Mike James
OTHERS
PRESENT: City Manager Jack Smith, City Secretary/Assistant City Manager Rose Chavez,
Assistant City Secretary/Administrative Assistant Samantha Renz, Electric
Superintendent Mike Prater, Robert Ingram, Robert Roberts, Steve Koch, Trisa
Koch, Albert Keith, Marquieta Keith, C.G. McNeill, Crystal Brown, Jason
Driskill
1. Mayor Called Meeting to Order, led the Invocation, and the Pledge of Allegiance.
CONSENT AGENDA
2. a) Approve Minutes: August 19, 2002
b) Disbursements
Councilman Higgs moved to accept the Consent Agenda, Councilman James seconded,
Motion carried unanimously.
3. Citizen's Input.
Albert Keith,1299 Keith Dr., addressed the Council in regards to the development of
land on the North side of F.M. 455. The area is the hill where the old barn stood as you
go out to the West. The area is zoned business and agriculture and as Sanger develops
its going to grow. He indicated that he is not against the growth. His concern is the
drainage problems as the area is developed. This will create a lot of hard pan surfaces
in the area and create more drainage along the road and Keith Dr. It will also create
more water on Ruth Marshall's place. Part of the problem is already developing.
There was a tank that was being used to retain the water. This is now being used as a
dump and being filled up. The water will not run past his road like it should because
the ditch is too high. The state will not allow him to put a horn in. With all of this there
will be a lot of problems, and as the land is developed it will create more problems.
Mayor indicated it has been the policy that when developers come in that they do
something to take care of the drainage. It will be a requirement of the City
Mr. Keith indicated he wanted to bring this up before construction began.
Discussion regarding the drainage.
4. Conduct Public Hearing on Proposed Budget for FY 2002/2003.
Public Hearing opened.
No Discussion.
Public Hearing closed.
5. Conduct Second Public Hearing on Proposed Annexation of Abstract 1241, Tract 58,
Being 4.99 Acres.
Public Hearing opened.
Albert Keith, indicated he realized the City is interested in extending it's borders. He
is not here to declare war on the City, but did have some concerns. He asked what the
zoning would be.
City Manager indicated it would be brought in as Agriculture.
He asked if all of his buildings would be grand fathered.
City Manager indicated they would.
Mr. Keith asked if they would be included in the mosquito spraying.
Staff indicated he would.
Mr. Keith asked about Animal Control and asked if the skunks were bothering them if
he could still use his gun or would he have to can animal control.
Council indicated he would call animal control.
Mr. Keith asked if he would be able to have livestock.
Staff indicated he would.
Mr. Keith asked about getting City sewer services.
City Manager indicated in the future there will be development in that area that will
probably bring a sewer line near his property.
Discussed that Mr. Keith would have to pay to bring the line to his property and from
there to his house.
Mr. Keith indicated living in the county he can currently burn his limbs. Will he still
be able to.
Council indicated he would not be able to burn but the city would chip them
Discussed that he would have to bring them to the property line.
Mr. Keith indicated he is not in a hurry to be annexed and would like them to wait if
possible.
Public Hearing closed.
6. Conduct Public Hearing to Consider a Zoning Request Change From I-1(Industrial
-1) to 11-2 (Business 2) on Property Legally Described as Sanger I-35 Industrial Park,
Lot 1R-1. The property is located on F.M. 455.
Public Hearing opened.
City Manager indicated this was the location of the Chicken Express across from F &
M Bank. Planning and Zoning unanimously approved the change.
Public Hearing closed.
7. Consider and Possible Action Regarding a Zoning Request Change From I-1
(Industrial 4) to B-2 (Business 2) on Property Legally Described as Sanger I-35
Industrial Park, Lot 1R-l. The property is located on F.M. 455.
Councilman Evans moved to approve the request, Councilman Garza seconded, Motion
carried unanimously.
8. Consider and Possible Action on Presentation by Steve Koch Regarding Tap Fees for
Multi -Unit Properties,
Steve Koch, 6415 Stags Leap Rd., addressed the Council regarding the tap fees. He
indicated that Sanger's are the same for houses and apartments. He indicated Sanger
was about $1000.00 higher than Denton. Apartments use less water and sewer than
houses. In the past few months the city has increased the cost of a new house by about
$30,000. Where are the people going to live that can't afford the houses.
Councilman Garza indicated he disagreed that apartments used less water and sewer.
Discussion continued regarding the fees.
No Action taken.
9. Consider and Possible Action on Ordinance #09-22-02 -Amending the Zoning
Ordinance by Changing the Parking Regulations.
City Manager indicated that the City Attorney indicated that normally the market will
determine this regulation.
Councilman Evans moved to adopt Ordinance #09-22-02. Councilman Garza seconded.
Councilman Higgs asked if this would apply to new Subdivisions.
Staff indicated it would.
Discussion.
Motion carried unanimously.
Caption as follows:
THAT CHAPTER 14, SECTIONS 9 THROUGH SECTION 17 ARE HEREBY
AMENDED, CHANGING THE PARKING REGULATIONS IN FOR SINGLE AND
TWO FAMILY DISTRICTS, PROVIDING FOR THE REPEAL OF ORDINANCES
N CONFLICT; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY
CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
10. Consider and Possible Action on Ordinance #09-23-02 - Adding a Commercial Sewer
Rate for a 6" Water Meter,
City Manager indicated when we First established this we did not have a rate for the 6"
water meter. We now have a 6" meter and need to establish a rate. The proposed rate
is $100.00.
Councilman Evans moved to approve ordinance #09-23-02, Councilman James
seconded. Motion carried unanimously.
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS,
AMENDING CHAPTER 13, ARTICLE 13.500 AND APPENDIX ARTICLE 4.000,
SECTION 4.1200 OF THE CITY OF SANGER CODE OF ORDINANCES; AND
PROVIDING FOR THE REPEAL OF ORDINANCES IN CONFLICT; PROVIDING
A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE: AND,
PROVIDING FOR AN EFFECTIVE DATE,
11. Meeting Adjourned.
L:.02
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September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item #4
Alan Bucel would like to address the Council regarding commercial properties along I-35.
September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item #5
Jeff Styles with DTN Speednet will be present to address the Council regarding this. We should
also, at that time have an amended contract proposal.
September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item #7
Attached is the proposed ordinance regarding solicitation in Rights-of4ay. The only thing we
added was Section 4.219. This is at the recommendation of TML Attorney Scott Houston.
ORDINANCE # 09-25-02
AN ORDINANCE OF THE CITY OF SANGER, TEXAS AMENDING CHAPTER 49 BY
ADDING A SECTION TO BE NUMBERED 4,2198 AND CHANGING SECTION 4.219 TO
SECTION 4,220 OF THE CODE OF ORDINANCES OF THE CITY OF SANGER, TEXAS,
PROVIDING FOR THE REPEAL OF ORDINANCES IN CONFLICT; PROVIDING A
SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS:
Section 1. That chapter 4, Section 4.219 and Section 4.220 of the city of Sanger Code of
Ordinances is hereby amended to read as follows:
"Sec. 4.219 Solicitation in Public Right -of- Way
No one under the age of seventeen (17) will be allowed to solicit in any public Right-of-
way."
Sec. 4.220 Violations and Penalty
(a) Violation of any of the provisions of this article shall upon conviction be punishable
by a fine in accordance with the general penalty provision set forth in Section 1.109 of this
code for each offense, an each and every day such violation shall continue shall constitute
a separate offense.
(b) In addition to any criminal enforcement, the city or any individual may pursue any
available civil remedies deemed appropriate and necessary."
Section 2. All ordinances or parts of ordinances in conflict herewith are, to the extent of
such conflict, hereby repealed.
Section 3. It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses, phrases and words of this Ordinance are severable and, if any word,
phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional
by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall
not affect any of the remaining portions of this Ordinance, since the same would have been enacted
by the City Council without the incorporation in this Ordinance of any such unconstitutional word,
phrase, clause, sentence, paragraph, or section.
Section 4. Any person, firm, or corporation who shall violate any of the provisions of this
article shall be guilty of a misdemeanor and upon conviction shall be fined in accordance with the
general penalty provision found in Section 1.109 of this Code.
Section 5. This ordinance will take effect immediately from and after its passage and the
publication of the caption, as the law and Charter in such cases provide.
DULY PASSED, APPROVED, AND ADOPTED, this the 16th day of September A.D.,
2002, by the City Council of the City of Sanger, Denton County, Texas.
APPROVED:
Tommy Kincaid, Mayor
ATTEST:
Rosalie Chavez, City Secretary
September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item #S
Attached is the proposed settlement agreement with TXU, along with a letter from the attorneys
handling the case.
Strasburger
ATTORNEYS AT LAW
June 24, 2002
DAVID J. LaBREC
214.651.4751
david.labrec@strasburger.com
Mr. Jack Smith
City Administrator
City of Sanger
P.O. Box 1729
Sanger, TX 76266
Re: Cities of Denton, et al v. Texas Utilities Company, et al
Cause No. 2000-60109-393
Dear Mr. Smith:
In connection with the settlement of the above referenced matter, you will find enclosed
with this letter the following documents:
1. Original and one copy of the Compromise Settlement Agreement and Release; and,
2. A disk containing the Franchise Amendments to the existing Gas and Electric
Franchise Agreements.
These documents are the result of protracted negotiations between TXU and the Steering
Committee. However, it is up to each Plaintiff City to approve the terms of the Agreement.
Please review the proposed Compromise Settlement Agreement and Release, grid upon
approval by your City Council, please return to me at your earliest convenience.
Once the City Council has enacted the Franchise Ordinance Amendments, please send
me a copy of the Amendments as well at your earliest convenience.
Should you have any questions, please do not hesitate to contact me at the number listed
above or call Kevin Maguire at 214-651-4696.
Sincerely,
/��
David J. LaBrec
KJM:dsh .
Enclosures
a")•�
�'/ C,° �� l.�
691828.1 /SPO129121 /0104/06242002
Strasburger &Price, LLP
901 Main Street, Suite 4300 Datlas, Texas 75202.3794 214.651.4300 tel 214.651.4330 fax www.strasburger.com
Austin Dallas Houston San Antonio Washington D.C. lAexico City
COMPROMISE, SETTLEMENT AND RELEASE AGREEMENT
This Compromise, Settlement, and Release Agreement (the "Agreement") is made and
entered into as of the date set forth below by and between the City of Sanger (the "City") and
TXU Gas Company ("TXU Gas") and TXU Corp. (collectively sometimes referred to as the
"TXU Defendants"):
WHEREAS, there is currently pending in the 134`�' Judicial District Court of Dallas County,
Texas, in Cause No. 00-9383, a suit styled City of Denton, Texas et al. vs. TXUElectric Company, et
al. (the "Litigation") which includes claims by the City against the TXU Defendants arising out of
the gas franchise ordinance entered into by and between the City and TXU Gas and, specifically, a
dispute with regard to the amount of franchise fees paid to the City by TXU Gas;
WHEREAS, the City and the TXU Defendants have compromised and settled all claims
asserted in the Litigation;
NOW, THEREFORE, in order to settle and finally resolve the causes of action asserted in
the Litigation and to fully and finally resolve all disputes and claims arising out of the calculation
and payment of franchise fees to the City by TXU Gas prior to and through December 31, 2001, for
the mutual promises and covenants set forth in this Agreement, the adequacy and sufficiency of
which consideration is acknowledged, and, without the TXU Defendants having admitted any of the
validity of any allegations made in the Litigation, the City and the TXU Defendants agree as follows:
1. AMENDMENTS TO THE GAS FRANCHISE ORDINANCE
Effective January 1, 2002, the City agrees to enact and TXU Gas agrees to accept an
amendment to the current gas franchise ordinance substantially in the form of the amendment
attached as Exhibit A to provide that, at the election of the City, the franchise fee will increase to a
maximum of 4.00% of the applicable franchise fee payment base and, at the election of the City, the
franchise fee payment base shall be amended to include miscellaneous fees, contributions in aid of
COMPROMISE. SETTLEMENT AND RELEASE AGREE�[ENT - P�Qc 1
i� +.P n �,
Zr �' v L.. �1
construction, bad debt expense, transportation revenues and third -party gas sales and gross receipts
fees as well as a favored nations clause with respect to franchise fee payments and franchise fee
calculations, substantially in the form of the provisions in Exhibit A. The City acknowledges that
TXU Gas has Lite right to recover from its ratepayers such additional franchise fee payments to the
City and the City agrees to cooperate with TXU Gas in order for TXU Gas to pass through to its
ratepayers the entire franchise fee payment, as amended, by taking the following actions: (i) as
regulatory authority, by adopting and approving that portion of the ordinance, rates or tariff which
provide for 100% recovery of such franchise fees as part of TXU Gas' rates; (ii) in the event the City
intervenes in any regulatory proceeding before a federal or state agency in which the recovery of
TXU Gas' franchise fees is an issue; the City will take an affirmative position supporting 100%
recovery of such franchise fees by TXU Gas and; (iii) in the event of an appeal of any such
regulatory proceeding in which a City has intervened, the City will take an affirmative position in
any such appeals in support of the 100%recovery of such franchise fees by TXU Gas. The City
further agrees not to take any action to prevent the recovery of such franchise fees by TXU Gas and
to take other action which may be reasonably requested by TXU Gas to provide for the 1000/
recovery of such franchise fees from TXU Gas' ratepayers.
2. PAYMENT TO THE CITY
Upon execution and delivery of a frilly executed and notarized original of this Agreement and
conditioned upon the dismissal of the Litigation with prejudice as provided by Paragraph 4:
A. TXU Gas agrees to pay to the City, by payment to its attorneys, Strasburger &Price,
the sum of $5,079.00, the same being City's share of an aggregate sum of exactly
$2,000,000.00 which TXU Gas agreed to pay to the Plaintiffs in the Litigation, which
$2,000,000.00 amount is calculated by multiplying the general business revenues
received by TXU Gas in the calendar year 2000 in the City in which TXU Gas did
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page 2
business in the aggregate amount of $165,591,132.80 by a factor equal to
0.0120779414. The City acknowledges that TXU Gas has the right to and shall
recover the portion of the $2,000,000.00 amount actually paid to the Plaintiffs in
connection with the settlement of the Litigation from its ratepayers pursuant to the
tax adjustment clause applicable to TXU Gas, by applying a surcharge to the monthly
bills rendered to its ratepayers, provided that the recovery of such surcharge shall be
limited as follows: (1) the surcharge shall be amortized over a period not less than
three years, and (2) the accrual balance will not be subject to interest. TXU Gas
agrees that the franchise fee paid to the City and recovered from ratepayers under this
Agreement will not include any amounts collected in the past from ratepayers.
B. The TXU Defendants agree and expressly represent that none of the amounts set
forth in paragraph 3 below shall be recovered from ratepayers pursuant to a tax
adjustment clause or by applying a surcharge to the monthly bills rendered to
ratepayers, or otherwise "passed thru" to ratepayer(s).
3. FEES AND E`CPENSE REIMBURSEMENT
Upon execution and delivery of a frilly executed and notarized original ofthis Agreement and
conditioneA upon the dismissal of the Litigation with prejudice as provided by Paragraph 4, the
TXU Defendants agree to pay the City, by payment to its attorneys, Strasburger &Price, the sum of
$2,372.80 the same being City's share of an aggregate sum of exactly $915,000 which the TXU
Defendants agreed to pay to the Plaintiffs to reimburse the Plaintiffs for attorneys' fees and expenses
incurred in the Litigation.
COMPROMISE SE"rTLENIENT AND RELEASE AGREEMENT - Paae 3
4. DISMISSAL OF THE LITIGATION
The parties recognize and agree that this settlement is a full settlement of all claims asserted
or which could have been asserted by the City against TXU Gas and TXU Corp. in the Litigation
related to the calculation or payment of franchise fees prior to and through December 315 2001 and
the parties agree that, in connection with such settlement, they will jointly file with the Court having
jurisdiction of the Litigation appropriate pleadings in order to dismiss the Litigation with prejudice
as to the City, with the order of dismissal to provide that costs of court will be taxed against the party
incurring the same and be substantially in the form of the Agreed Order attached as Exhibit B.
5. RELEASE OF THE TXU DEFENDANTS BY THE CITY
Except for claims arising out of a breach of this Agreement, the City of Sanger, on behalf of
itself and its successors and assigns and any and all persons, entities or municipalities claiming by,
through or under them, hereby RELEASES, DISCHARGES AND ACQUITS, forever and for all
purposes, TXU Gas Company, inchiding its division TXU Gas Distribution, TXLJ Corp. and each of
their respective agents, employees, officers, directors, shareholders, partners, insurers, attorneys,
legal representatives, successors and assigns as well as their affiliated corporations, including
TXU Business Services Company and TXU Energy Company LLC and its subsidiaries, from and
against any and all liability which they now have, have had or may have, and all past, present and
future actions, causes of action, claims, demands, damages, costs, expenses, compensation, losses
and attorneys' fees of any kind or nature whatsoever, or however described, whether known or
unknown, fixed or contingent, in law or in equity, whether asserted or unasserted, whether in tort or
contract, whether now existing or accruingin the future arising out of or related to the payment,
calculation or rendition of franchise fees to the City on or before December 31, 2001 and all claims
which were asserted against the TXU Defendants in the Litigation or which could have been alleged
against the TXU Defendants in the in the Litigation in any way related to the payment, calculation or
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Pa%e 4 �� f� '3
Z-.'v�I.
rendition of franchise fees by the TAU Defendants on or before December 31, 2001. This release is
intended to only release claims related to the payment, calculation or rendition of franchise fees by
the TXU Defendants on or before December 31, 2001 and is not intended to release any other claim
oI cause of action that any party to this Agreement has, known or unknown, or which accnies in the
future.
6. WARRANTY AS TO OWNERSHIP OF CLAIMS AND AUTHORITY
A. The City warrants and represents that it is the owner of the claims being
compromised, settled, discharged and released pursuarit to this Agreement and each
further warrants and represents that it has not previously assigned all or any part of
such claims to another entity or person. The City warrants and represents that there
are no liens of any nature, assignments or subrogation interests in or to the money
paid to the City under the terms of this Agreement.
B. The TXU Defendants warrant that the persons) executing this Agreement on their
behalf has authority to bind the entity for whom such person signs this Agreement.
7. NO ADMISSION OF LIABILITY
This Agreement is made to compromise, terminate and to constitute an accord and
satisfaction of all of the claims released by this Agreement and the TXU Defendants admit no
liability, fault or wrongdoing of any nature or kind whatsoever and expressly deny and disclaim any
liability, fault or wrongdoing alleged or which could have been alleged with regard to the claims
asserted in the Litigation.
8. RECOVERY OF DAMAGES DUE TO BREACH
In the event of breach by any party of the terms and conditions of this Agreement, a non -
breaching party shall be entitled to recover all expenses as a result of such breach, including, but not
limited to, reasonable attorneys' fees and costs.
COtNJIPROMISE SETTLEMENT AND RELEASE AGREEMENT - Page 5 ,
MISCELLANEOUS PROVISIONS
9. It is understood and agreed that all agreements and understandings by and between the parties
to this Agreement with respect to the Litigation, the settlement of the Litigation and the payment of
franchise fees are expressly embodied in this Agreement and that this Agreement supersedes any and
all prior agreements, arrangements or understandings between the parties relating to the claims
released pursuant to this Agreement or any matters related thereto executed by the parties, including
the Memorandum of Understanding dated January 31, 2002 signed by counsel for the Plaintiffs and
the TXU Defendants.
10. The parties acknowledge and agree that the terms of this Agreement are all contractual and
not mere recitals.
11. The parties acknowledge that they have read this Agreement, understand its terms, and that
this Agreement is entered into voluntarily, without duress, and with full knowledge of its legal
significance.
12. This Agreement may not be modified in any manner, nor may any rights provided for herein
be waived, except by an instrument in writing signed by each party.
13. This Agreement shall be binding upon and shall inure to the benefit of the parties and their
respective successors and assigns.
14. Should any term or any provision of this Agreement be declared invalid by a court of
competent jurisdiction, the parties agree that all other terms of this Agreement are binding and have
full force and effect as if the invalid portion had not been included.
15. The parties represent and warrant that no party has been induced to enter this Agreement by a
statement, action or representation of any kind or character made by the persons or entities released
under this Agreement or any person or persons representing them, other than those expressly made in
this Agreement.
CObtPROMISE, SETTLEMENT AND RELEASE AGREEMENT - Paee 6 - L' .i
1D* It is understood and agreed that this Agreement may be executed in a number of identical
counterparts, each of which shall be deemed an original for all purposes.
17. The headings contained herein are for convenience and reference only and are agreed, in no
way, to define, describe, extend or limit the scope or intent of this Agreement or its provisions.
180 This Agreement shall be construed in accordance with the laws of the State of Texas.
IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date
set forth.
THE CITY OF SANGER, TEXAS
By:
Its:
Date:
TXU GAS COMPANY
By:
Its:
Date:
TXU CORP.
By:
Its:
Date:
CONIPRO�IISC, SETTLEMENT AND RELEASE AGREEMENT -Page 7
STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the day of June 2002,
by , as on behalf of the City of Sanger, Texas.
Notary Public, State of Texas
STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument was acknowledged before me on the day of June 2002,
by , of TXU Gas Company, on behalf of said corporation.
Notary Public, State of Texas
STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument was acknowledged before me on the
by , of TXU Corp., on behalf of said corporation,
day of June 2002,
Notary Public, State of Texas
COMPROMISE SETTLEMENT AND RELEASE AGREEMENT - Paee 8
ORDINANCE NO,
AN ORDINANCE AMENDING THE EXISTING GAS
FRANCHISE BETWEEN THE CITY AND TXU GAS
COMPANY, TO PROVIDE FOR A DIFFERENT
CONSIDERATION AND TO AUTHORIZE THE LEASE OF
FACILITIES WITHIN THE CITY'S RIGHTS -OF -WAY;
PROVIDING AN EFFECTIVE DATE; PROVIDING FOR
ACCEPTANCE BY TXU GAS COMPANY; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS
REQUIRED BY LAW,
WHEREAS, TAU Gas Company (hereinafter called "TXU Gas") is, through its TXU
Gas Distribution division, engaged in the business of furnishing and supplying gas to the general
public in the City, including the transportation, delivery, sale, and distribution of gas in, out of,
and through the City for all purposes, and is using the public streets, alleys, grounds and rights -
of -ways within the City for that purpose under the terms of a franchise ordinance heretofore duly
passed by the governing body of the City and duly accepted by TXU Gas; and
WHEREAS, the City and TXU Gas desire to amend said franchise ordinance to provide
for a different consideration and to authorize the lease of facilities within the City's rights -of -
way;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF TEXAS: that
SECTION 1: The existing gas franchise ordinance between the City and TXU Gas
Company is amended as follows:
A. Effective January 1, 2002, the consideration payable by TXU Gas for the rights
and privileges granted to TXU Gas by the franchise ordinance heretofore duly
passed by the governing body of this City and duly accepted by TXU Gas is
hereby changed to be four percent (4%) of the Gross Revenues, as defined in
Section I.B. below, received by TXU Gas.
B. "Gross Revenues" shall mean all revenue derived or received, directly or
indirectly, by the Company from or in connection with the operation of the
System within the corporate limits of the City and including, without limitation:
(1) all revenues received by the Company from the sale of gas to all classes of
customers within the City;
too
LXHIBI��,
(2) all revenues received by the Company from the transportation of gas
through the pipeline system of Company within the City to customers
located within the City;
(3) the value of gas transported by Company for Transport Customers through
the System of Company within the City ("Third Party Sales"), with the
value of such gas to be reported by each Transport Customer to the
Company, provided, however, that should a Transport Customer refuse to
furnish Company its gas purchase price, Company shall estimate same by
utilizing TXU Gas Distribution's monthly industrial Weighted Average
Cost of Gas, as reasonably near the time as the transportation service is
performed; and
(4) "Gross revenues" shall include:
(a) other revenues derived from the following `miscellaneous
charges':
i. charges to connect, disconnect, or reconnect gas within the
City;
ii. charges to handle returned checks from consumers within
the City;
iii. such other service charges and charges as may, from time
to time, be authorized in the rates and charges on file with
the City; and
iv. contributions in aid of construction" ("CIAC");
(b) revenues billed but not ultimately collected or received by the
Company; and,
(c) gross receipts fees.
(5) "Gross revenues" shall not include:
(a) the revenue of any Person including, without limitation, an
affiliate, to the extent that such revenue is also included in Gross
Revenues of the Company;
(b) sales taxes; and
(c) any interest income earned by the Company; and
Page 2 of 5
(d) all monies received from the lease or sale of real or personal
property, provided, however, that this exclusion does not apply to
the lease of facilities within the City's right of way unless the
lessee is also an entity that pays franchise fees to the City.
Co Calculation and Payment of Franchise Fees Based on CIAC
(1) The franchise fee amounts based on "Contributions in aid of Construction"
("CIAC") shall be calculated on an annual calendar year basis, i.e., from
January 1 through December 31 of each calendar year.
(2) The franchise fee amounts that are due based on CIAC shall be paid at
least once annually on or before April 30 each year based on the total
CIAC recorded during the preceding calendar year.
D. Effect of Other Municipal Franchise Ordinance Fees Accepted and Paid by TXU
Gas
(1) If TXU Gas should at any time after the effective date of this Ordinance
agree to a new municipal franchise ordinance, or renew an existing
municipal franchise ordinance, with another municipality, which
municipal franchise ordinance determines the franchise fee owed to that
municipality for the use of its public rights -of -way in a manner that, if
applied to the City, would result in a franchise fee greater than the amount
otherwise due City under this Ordinance, then the franchise fee to be paid
by TXU Gas to City pursuant to this Ordinance shall be increased so that
the amount due and to be paid is equal to the amount that would be due
and payable to City were the franchise fee provisions of that other
franchise ordinance applied to City.
(2) The provisions of this Subsection D apply only to the amount of the
franchise fee to be paid and do not apply to other franchise fee payment
provisions, including without limitation the timing of such payments.
E. TXU Gas Franchise Fee Recovery Tariff
(1) TXU Gas may file with the City a tariff amendments) to provide for the
recovery of the franchise fees tinder this amendment.
(2) City agrees that (i) as regulatory authority, it will adopt and approve the
ordinance, rates or tariff which provide for 100% recovery of such
franchise fees as part of TXU Gas' rates; (ii) if the City intervenes in any
regulatory proceeding before a federal or state agency in which the
Page 3 of 5
recovery of TAU Gas' franchise fees is an issue, the City will take an
affirmative position supporting 100% recovery of such franchise fees by
TXU Gas and; (iii) in the event of an appeal of any such regulatory
proceeding in which the City has intervened, the City will take an
affirmative position in any such appeals in support of the 100% recovery
of such franchise fees by TXU Gas.
(3) City agrees that it will take no action, nor cause any other person or entity
to take any action, to prohibit the recovery of such franchise fees by TXU
Gas.
F. Lease of Facilities Within City's Rights -of -Way. TXU Gas shall have the right to
lease, license or otherwise grant to a party other than TXU Gas the use of its
facilities within the City's public rights -of -way provided: (1) TXU Gas first
notifies the City of the name of the lessee, licensee or user; the type of service(s)
intended to be provided through the facilities; and the name and telephone number
of a contact person associated with such lessee, licensee or user and (ii) TXU Gas
makes the franchise fee payment due on the revenues from such lease pursuant to
Sections I.A. and I.B. of this Ordinance. This authority to Lease Facilities Within
City's Rights -of -Way shall not affect any such lessee, licensee or user'; obligation,
if any, to pay franchise fees.
SECTION 2: In all respects, except as specifically and expressly amended by this
ordinance, the existing effective franchise ordinance heretofore duly passed by the governing
body of the City and duly accepted by TXU Gas shall remain in full force and effect according to
its terms until said franchise ordinance terminates as provided therein.
SECTION 3: This ordinance shall take effect upon its final passage and TXU Gas'
acceptance. TXU Gas shall, within thirty (30) days from the passage of this ordinance, file its
written acceptance of this ordinance with the Office of the City Secretary in substantially the
following form:
To the Honorable Mayor and City Council:
TXU Gas Distribution, a division of TXU Gas Company, acting by and through
the undersigned authorized officer, hereby accepts in all respects, on this the
day of 20 , Ordinance No. amending the
current gas franchise between the City and TXU Gas and the same shall constitute
and be a binding contractual obligation of TXU Gas and the City.
Page 4 of 5
TXU Gas Distribution
A division of TXU Gas Company
By
Vice President
SECTION 4. It is hereby officially found and determined that the meeting at which this
Ordinance is passed is 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.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
TEXAS , this the _ day of , 2002, at which meeting
a quorum was present and voting..
Mayor
ATTEST:
City Secretary
APPROVED AS TO FORM:
City Attorney
Page 5 of 5
N0.009383
CITY OF DENTON, TEXAS,
et al.,
Plaintiffs,
vs.
TXU ELECTRIC COMPANY,
et al.,
Defendants.
IN THE DISTRICT COURT
DALLAS COUNTY, TEXAS
134TH JUDICIAL DISTRICT
AGREED ORDER OF DISMISSAL WITH PREJUDICE
AS TO THE CITY OF SANGER
On this day, came on to be considered the above -referenced cause and Plaintiff, the City
of Sanger, and Defendants, by and through their respective attorneys of record, announced that
the parties have compromised and settled their disputes and moved that this action be dismissed
with prejudice as to the City of Sanger;
IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED that the above -styled
and numbered cause of action is dismissed with prejudice to the refiling of same as to the City of
Sanger, that all costs incurred are taxed against the party incurring same, and that any and all
relief requested by the City of Sanger not expressly granted herein is denied.
SIGNED this day of
2002.
JUDGE PRESIDING
EXHI*U"'I �I B
APPROVED AND AGREED AS TO FORM AND CONTENT:
STRASBURGER & PRICE, L.L.P.
By:
Kevin J. Maguire
State Bar No. 12827900
ATTORNEY FOR PLAINTIFF
HUNTON & WILLIAMS
By:
David P. Poole
State Bar No. 16123750
ATTORNEY FOR DEFENDANTS
TXU ELECTRIC COMPANY
TXU GAS COMPANY AND
TXU CORP.
AGRCGD ORDER OF DISMISS:\L —Pace 2
September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item #9
Attached is the proposed ordinance adopting the proposed budget for FY 2002/2003.
CITY OF SANGER, TEXAS
ORDINANCE NO. #09-27-02
AN ORDINANCE OF TIC CITY OF SANGER, DENTON COUNTY, TEXAS,
ADOPTING THE BUDGET FOR THE CITY OF SANGER, TEXAS FOR THE
FISCAL YEAR BEGINNING OCTOBER 1, 2002 AND ENDING SEPTEMBER 30,
2003 PROVIDING FOR THE INTRA AND INTER DEPARTMENT AND FUND
TRANSFERS; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, notice of a public hearing on the budget for the City of Sanger, Texas, for the
fiscal year 2002-2003 has been published in accordance with law; and,
WHEREAS, it is necessary, at this time, that said budget be adopted.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SANGER, TEXAS, AS FOLLOWS:
SECTION 1: That the budget presented by the City Council and reviewed during the public
hearing is hereby approved and adopted for the fiscal year 2002-2003.
General Fund $2,975,892.00
Enterprise Fund $5,22604.00
SECTION 2: That the City Manager is authorized to invest any funds not needed for current
use, whether operating funds or bond funds, in United States Treasury bills, savings accounts or
certificates of deposit. Accrued interest from such investment may be deposited in the General
Fund, all of which investments shall be in accordance with law.
SECTION 3: That the City Manager be and is hereby authorized to make intra and inter
department fund transfers during the fiscal year as becomes necessary in order to avoid expenditure
of a particular account.
SECTION 4: This ordinance shall take effect and shall be in full force and effect from
after its passage.
PASSED, APPROVED AND ADOPTED, this the 16th day of September A.D., 2002.
ATTEST:
Rosalie Chavez
City Secretary
Tommy Kincaid
Mayor, City of Sanger
September 12, 2002
To: Honorable Mayor and City Council
Fr: Rose Chavez, City Secretary/Assistant City Manager
Re: Item # 10
Attached is the proposed ordinance adopting the tax rate for FY 2002/20030
CITY OF SANGER, TEXAS
ORDINANCE NO. #09M28-02
AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS,
LEVYING TAXES FOR THE USES AND SUPPORT OF THE MUNICIPAL
GOVERNMENT OF THE CITY OF SANGER, TEXAS FOR FISCAL YEAR
BEGINNING OCTOBER 1, 2002, AND ENDING SEPTEMBER 30, 2003, AND
PROVIDING FOR THE INTEREST AND SINKING FUNDS FOR THE YEAR
2002 AND APPROPRIATING EACH LEVY FOR THE SPECIFIC PURPOSE;
PROVIDING PENALTY AND INTEREST FOR DELINQUENT TAXES; AND
DECLARING AN EFFECTIVE DATE.
BE IT ORDAINED AND ORDERED BY THE CITY COUNCIL, OF THE CITY OF
SANGER, TEXAS THAT,
We, the City Council of the City of Sanger, do hereby levy or adopt the tax rate on $100.00
valuation for this city for tax year 2002 as follows:
$0.34629 for the purpose of maintenance and operation
$0421918 for the payment of principal and interest on bonds and note payables
$0056547 total tax rate
The tax collector is hereby authorized to collect the taxes of the City of Sanger employing
the above tax rate.
PASSED AND APPROVED AND ADOPTED, this 16th day of September A.D., 2002.
Tommy Kincaid, Mayor
ATTEST:
Rosalie Chavez, City Secretary
MONTHLY REPORT
SANGER PUBLIC LIBRARY
AUGUS 2002 ACTIVITIES
Submitted by Victoria Elieson
HIGHLIGHTS:
Former Library Board President Ron LaFon died this month. Many donations in his
memory have been received.
Denton County has funded libraries annually since 1985. For the past seven years they
have given our library $16,000 to 18,000 each year. This year Commissioners discussed
eliminating this funding. They discovered additional revenues that enabled funding this year, but
future funding is in doubt.
ADMINISTRATION:
The computer with a dial -up [nternet connection had the hard drive crash, and it has been
down most of the month.
Meeting attended:
Library Board, 8/20
COLLECTION:
Completed the inventory of all hardback books and audio tapes. Paperback fiction and
videos are all that remain to be inventoried.
PUBLIC RELATIONS:
An announcement describing the upcoming Storytime will be put up each week to
increase interest in the program.
SPECIAL PROJECTS:
All historic Sanger Couriers have been microfilmed; except for those donated after the
final box was shipped! Papers have been returned to those who loaned them for the project.
PROGRAMS:
Adults and kids alike enjoyed the Summer Reading Chib Swimming Party. This year
registration for Summer Reading Club was up 33% (from 153 last year to 204 this year) probably
because of the school visits in May. Unfortunately the registrants didn't turn out to be
participants. This year 67 children earned c. certificate by reading two hours. Last year there
were 70.
Usually, there is a break from Storydme in August, but by popular request, the program
was still offered this year. The programs were more casual than most, but still fun. The themes
were "I Spy", "Origami", "Crazy Critters" and "Giants".
�r154 A f,
BORROWER CARDS
Last month
New cards
Cards withdrawn
Cards reactivated
TOTAL
CIRCULATION
Adult Nonfiction
Nonfiction Videos
Adult Fiction
Interlibrary Loan
Renewals & Misc.
Junior Biography
Junior Fiction
Children's Nonfiction
Children's Fiction
Paperback Fiction
Crystal
Videos
Video Players
Audio Tapes
Leased books
TOTAL
INTERNET USERS
PROGRAMS
Children's Programs
Children Attending
Adults Attending
VOLUNTEERS
Number of Adults
Number of Juniors
Number of Hours
COLLECTION
Books
Paperback Fiction
Video Materials
Audio Materials
Leased books
TOTAL COLLECTION
REVENUE
Fines
Copies
ILL Postage
Lost Materials
New Cards
Miscellaneous
TOTAL
AUGUST 2002 STATISTICS
Aug 2001 Aug 2002
2935
2908
52
48
0
1
14
9
3001
2964
306
269
37
46
167
186
22
12
244
210
3
3
99
80
228
159
416
253
136
247
1
0
274
297
1
0
63
48
0
122
1997
1932
355 344
1 5
34 55
11 33
2 4
4 3
52 39
15606
15328
2628
2665
651
656
302
348
0
197
19187
19194
$159.03 $106.95
$35.60 $57.50
$25.36 $9.17
$4.60 $0.00
$1.00 $1.25
$37.50 $0.00
$263,09 $174,87
Managers Progress Report 09-16-02
Water/Sewer:
We are waiting on Wakmart to sign the agreement for us to use
their electricity for our SCADA system and we will be ready to go.
Streets:
We are having another meeting with bidders for the street
project on Friday, Sept. 13t".
We ( Mark Owens and myself) have been in touch with the
Texas Department of Transportation, Road & Bridge Division. We
qualify for assistance on replacing the McReynolds Road bridge. The
assistance is for 90% of the cost of replacement of the bridge plus
150 feet of paving in both directions. Estimated cost to the City is
$22,000.00. We also may be able to work something out with the
Duck Creek bridge.
Contacts/New Businesses:
Quail Run: Cowling Road: Final details are being discussed between
the City engineer and the engineer for the developer.
Lathum Staircase: If you haven't been north of town, the building
has been started and should be completed by the end of October.
Radio Shack: John Porter is reworking the entrance to meet TxDOT
requirements. We should see construction start in October.
Brooke Hill Village: There is an item on the agenda for a
presentation to show you what Dr. Agha plans on doing on her
property. This is only a presentation and does not require any action.