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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 5/22/2023 | | DEPARTMENT: | Gov Relations | | DIRECTOR: | Andrew Fortune, Director of Policy & Government Relations | | AGENDA ITEM: | A second reading of an Ordinance to extend the current Franchise Agreement between CoServ Electric and the City of Plano until June 9, 2024. | | RECOMMENDED ACTION: | Items for Individual Consideration |
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| | | | | | | | ITEM SUMMARY Second Reading and consideration of an Ordinance to amend Section 3 of Ordinance No. 2003-6-3, Section I of Ordinance No. 2008-4-42, Section I of Ordinance No. 2015-10-17 and Section I of Ordinance No. 2019-11-15 to extend the non-exclusive franchise granted to Denton County Electric Cooperative, Inc., d/b/a CoServ Electric, a Texas electric cooperative corporation, to use the present and future streets, avenues, alleys, roads, highways, sidewalks, easements and other public rights-of-way in the City of Plano, Collin County, Texas, for the purposes of constructing and operating an electric distribution system in the City of Plano; and providing a repealer clause, a severability clause, a publication clause, and an effective date. (First reading was held at the April 10, 2023, City Council meeting.) Second reading conducted and adopted Ordinance No. 2023-5-8 |
| | | | | | | | PREVIOUS ACTION/PRESENTATION The first reading of the Ordinance was held at the April 10, 2023 City Council meeting. |
| | | | | | | | BACKGROUND The City of Plano and CoServ Electric agree to extend the term of the current Franchise Agreement for one year until June 9, 2024 while a new Franchise Agreement is being negotiated.
As required by City Charter, the first reading was held at the Monday, April 10th City Council meeting, and the second reading will be held at the Monday, May 22nd City Council meeting. After the second reading, the Ordinance will be published for four consecutive weeks in the official Plano newspaper, and conditioned upon written acceptance by CoServ Electric. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS The extension of this Franchise Agreement will produce an indeterminable amount of revenue, attributable to a quarterly franchise fee based on 4% of the Gross Revenues during the preceding quarter, as defined in the agreement. As a point of reference, anticipated CoServ Electric Franchise Fee Revenue to be received in FY 2022-23 is approximately $1,100,000.
Approval of this extension relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government. |
| ATTACHMENTS: | | Description | Upload Date | Type | | Ordinance | 4/17/2023 | Ordinance |
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