Title
Ordinance - Second and Final Reading of an Ordinance Granting to United Electric Cooperative Services, Inc., its Successors and Assigns an Electric Power Franchise to Use the Present and Future Streets, Alleys, Highways, Public Utility Easements, Public Ways and Other Public Property (Public Rights-Of-Way) of Mansfield, Texas, Providing for the Repeal Of All Prior Franchise Ordinances to United Electric Cooperative Services, Inc., Its Predecessors and Assigns, Providing for Compensation Therefor, Providing for an Effective Date and a Term of Said Franchise, Providing for Written Acceptance of this Franchise, and Finding that the Meeting at Which this Ordinance is Passed is Open to the Public
Requested Action
Approval of the Ordinance. Notice that the Ordinance as proposed pays the City of Mansfield at a rate .0032 per Kwh. The previous agreement’s rate varied each year.
Recommendation
Approval of the Ordinance. Written and Approved by City Attorneys
Description/History
The City of Mansfield has had a good working relationship with United CoOp and has meeting United the last several months negotiating the new Franchise Agreement. A table is attached showing the Franchise Tax paid since 2003. The rate varies based on the formula used and approved during that agreement. This Agreement is meant to simplify the calculation and expected Franchise Tax Paid for both parties and allows for residential and commercial accounts to be paid out the same by United.
The new Franchise Agreement has a $.0032 per Kwh. In comparison, Oncor’s current agreement is $.0030 per Kwh. Another payout option has been proposed by United after the Ordinance had been publicized for Public Hearing but before this meeting; Years 1-5 a flat rate of $0.0032 per Kwh and Years 6-10 a flat rate of $.0034 per Kwh.
It is Staff’s recommendation to accept the newest rate proposal and include it as an amendment change in the passage of this reading; however, Council may choose to...
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