Title
Consider/Discuss/Act on an Ordinance Granting to Denton County Electric Cooperative, Inc., D/B/A CoServ Electric, a Non-Exclusive Franchise to Use and Occupy Public Rights-of-Way Within the City of McKinney for the Constructing and Operating of an Electric Transmission and Distribution System
Summary
MEETING DATE: December 6, 2011
DEPARTMENT: City Manager’s Office
CONTACT: Aretha Harvey, Assistant to the City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
· Conduct public hearing and approve the ordinance.
ITEM SUMMARY:
· This ordinance grants Denton County Electric Cooperative, Inc., D/B/A CoServ Electric (Cooperatiave) a non-exclusive permission to construct, re-construct, extend, repair, remove, operate and maintain the electric transmission and distribution system within the public rights-of way of the City.
· This ordinance represents the terms and conditions of the franchise agreement.
· The negotiated franchise as set forth in the ordinance includes compensation that is equivalent to 5% of gross revenues, and will be paid to the City on the basis of a per kilowatt hour assessment calculated to be $0.005764 per kWh.
· This ordinance shall become effective upon cooperative’s written acceptance and the said written acceptance to be filed by Cooperative with the City within sixty (60) days after City provides written notice to the Cooperative of the final passage and approval (if passed, effective date will be March 1, 2012).
· The Franchise agreement shall terminate on December 31, 2021, unless written notice of non-renewal is given by either party hereto to the other not less than six (6) months before the expiration of the Franchise granted. The agreement shall be automatically renewed for an additional period of one (1) year from such expiration date and shall be automatically renewed thereafter for like periods until cancelled by written notice given not less than six (6) months before the expiration of any...
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