TX-NM Power-AG050809AGENDA REQUEST FORM
ITEM CAPTION:
THE E C I T Y • O F
COPPELL
DEPT: Engineering
DATE: August 9, 2005
ITEM #: 15
Consider approval of a license agreement between the City of Coppell and Texas New Mexico Power Company, a
Texas Corporation, its successors and assigns for the use of right -of -way to erect, maintain and operate facilities,
and authorizing the City Manager to sign.
APPROVED BY
CITY COUNCIL
ON ABOVE DATE
GOAL(S):
EXECUTIVE SUMMARY:
Motion to Approve
M - York
S - Peters
9-6-0-1
ncheau filed a Conflict Affidavit
abstained from the vote
Libby Ball
2005.0
16.14.5E 4 -
-
05'00'
Approval of this license agreement will allow Texas New Mexico Power Company to provide electrical service
and install street lights to serve the Vista Ridge Addition (The Plaza).
;staff will be available to answer any questions at the Council
FINANCIAL COMMENTS:
Agenda Request Form - Revised 09/04 Document Name: #License Agmt Tx NM
MEMORANDUM
TO: Mayor and City Council
FROM: Kenneth M. Griffin, P.E., Director of Engineering and Public Works
DATE: August 9, 2005
REF: Consider approval of a license agreement between the City of Coppell and Texas
New Mexico Power Company, a Texas Corporation, its successors and assigns for
the use of right -of -way to erect, maintain and operate facilities; and authorizing the
City Manager to sign.
For several months now, city staff has been meeting with representatives of Texas New Mexico
Power Company (TNMP) and "the Plaza" development concerning power and street lighting
facilities for the development. Council may recall that the development is located within the
city's of Coppell and Lewisville. The developer has stated that he desires to utilize TNMP for all
power and streetlight services within the entire development.
Currently, TNMP does not have an agreement to install their facilities within city right -of -way.
In 2001, the City of Coppell approved the city's Right -of -way Management Ordinance #2001-
944. This ordinance governs all types of service provider facilities within city right -of -way.
Agreements entered into prior to the adoption of the city's Right -of -way Management Ordinance
were typically franchise agreements. The Right -of -way Management Ordinance references in
Section 6 -14 -14 that upon the expiration of all franchise agreements they shall be governed by
this Right -of -way Management Ordinance. Subsequent to conversations with the city's attorney,
it was determined that the appropriate approach to facilitate TNMP Providing
lighting to "the Plaza" is to enter into a license agreement with TNMP, pno`t ea franchise
agreement. The license agreement allows TNMP to construct pertinent facilities within city
right -of -way in accordance with the previously approved Right -of- -way Management Ordinance
#2001 -944.
TNMP submitted a typical franchise agreement to my office for review. Most items in that
proposed franchise agreement have been incorporated into this license agreement. The proposed
franchise agreement from TNMP had a length of term of 25 years. However, this license
agreement is in essence perpetual if compliance with the Right of way Management Ordinance
#2001 -944 is maintained.
COPPE 'LA
YEARS IN
19$5.2005
TNMP also stated in the proposed franchise agreement that payment to the City would be based
on 2% of revenue. Our current agreement with TXU and Co -Sere is based on 4% of gross
receipts. I have included 4% of gross receipts in this license agreement.
Staff recommends approval of the license agreement between Texas New Mexico Power
Company and the City of Coppell and will be available to answer any questions at the Council
meeting.
GOPPEL&
YEARS IN
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