HomeMy WebLinkAboutResolution No. 98-09 RESOLUTION NO. R98-9
A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS,
AUTHORIZING TH$ CITY ATTORNEY TO TAKE APPROPRIATE
LEGAL ACTION TO OBTAIN REIMBURSEMENT FROM TEXAS-
NEW MEXICO POWER COMPANY; AtdD SETTING FORTH OTHER
PROVISIONS RELATED THERETO.
* * * * * * * * �r *
WHEREAS, on or about December 16, 1996 the City of Friendswood (the "City")
instituted a local proceeding to inquire into the reasonableness of the
rates of Texas-New Mexico Power Company ("TNMP") ; and
WHEREAS, the City joined with other cities in the Gulf Coast Coalition of
Cities (the "Cities") who also instituted such proceedings; and
WHEREAS, by letter agreement dated February 12, 1997 TNMP agreed to
reimburse the Cities for 90 percent of the Cities' expenses associated with
the local rate proceedings and settlement discussions involving a transition
plan; and
WHEREAS, TNMP has paid only $31, 150.91 out of the Cities' total expenses of
$298,353 .17 invoiced to TNMP for the local rate proceedings and transition
plan negotiations; and
WHEREAS, TNMP has violated the Agreement and refuses to pay the remaining
amount of $240,482 .03; and
WHEREAS, in reliance upon the Agreement, the City of Friendswood paid the
entire amount of such expenses out of its own funds; and
WHEREAS, because of TNMP's refusal to honor the Agreement, the City of
Friendswood must receive from the remaining Cities their proportionate share
of the expenses to avoid adverse auditing consequences; and
WHEREAS, the City Council expects TNMP to honor its Agreement and authorizes
the City Attorney to take appropriate steps to obtain reimbursement from
TNMP;
R98-9/LST03
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FRIENDSWOOD, TEXAS:
Section 1. That the City Council hereby adopts the findings and recitals
set forth in the preamble hereof.
Section 2. That the City Attorney, in conjunction with the Gulf Coast
Coalition of Cities, is hereby authorized to take appropriate
legal action, including filing suite if necessary or
appropriate, to obtain reimbursement of the total sum from
Texas-New Mexico Power Company.
PASSED, APPROVED ALdD RESOLVED, this 16th day of March , 1998.
Mayor Harold L. Whita r
City of Friendswood
ATTEST:
F
• .
Deloris McKenzi , T C
City Secretary
R98-9/LST03