Agenda

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Item # 10.

Work Session and Regular Meeting

Meeting Date:	06/23/2020
Department:	City Manager

AGENDA CAPTION:

Present, Discuss, and Consider Action on the First Reading of an Ordinance of the Town of Addison, Texas Granting to Oncor Electric Delivery Company LLC, Its Successors and Assigns, an Electric Power Franchise.

BACKGROUND:

On February 22, 2005, the Town of Addison, Texas (the “Town”) adopted Ordinance No. 005-0100 which granted a non-exclusive franchise to Oncor Electric Delivery Company LLC (“Oncor” or “Company”), an electric power franchise to use the present and future streets, avenues, alleys, roads, highways, sidewalks, easements, and public ways and other public property of the Town for the purposes of constructing and operating an electric distribution and transmission system and for delivering electricity to Town residents and businesses.

The current franchise authority granted by the Addison City Council was set to expire on July 31, 2019, and said franchise was extended by Ordinance No. 019-26, which was adopted on June 24, 2019. This extension was requested because of possible regulatory and statutory changes that were taking place that could have impacted details of the franchise. The franchise being proposed accounts for the regulatory and statutory changes that were enacted. This franchise closely mirrors the one negotiated and enacted between the City of Plano and Oncor.

Town Charter Section 6.02 requires all Ordinances granting, renewing, amending or extending franchises for public utilities to be read at two (2) separate regular meetings of the City Council. This is the first required reading. The Charter additionally requires the full text of the Ordinance to be published once a week for four (4) consecutive weeks in the official newspaper with the expense paid by Oncor. At least thirty (30) days must pass between the first reading and passage of the Ordinance. The Ordinance shall not take effect until thirty (30) days after its final passage.

Below is a summary of the changes in the Ordinance:

Any references to TXU were changed to Oncor.
Language was updated to comply with statutory and regulatory changes.
Indemnification language was updated.
Language was incorporated to protect the Town's ability to regulate ancillary uses on Oncor's system (in accordance with applicable laws and regulations).
Payment schedules were updated.
Language was added to match Addison's Charter requirements.

It is to the mutual advantage of the Town and Oncor to enter into a new franchise establishing the conditions under which Oncor will operate its electric delivery system, equipment and facilities in the Town.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Franchise Agreement with Oncor