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Res 10-40 Provide Notice to Atmos Mid-Tex that the Town Elects to Include All Amounts Collected in the Definition of Gross Receipts TOWN OF WESTLAKE RESOLUTION NO 10-40 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, AUTHORIZING THE TOWN MANAGER TO PROVIDE NOTICETO ATMOS MID-TEX THAT THE TOWN OF WESTLAKE ELECTS TO INCLUDE ALL AMOUNTS COLLECTED IN THE DEFINITION OF GROSS RECEIPTS; INCLUDING THE AMOUNTS BILLED TO AND COLLECTED FROM CUSTOMERS FOR FRANCHISE FEES AND THE AMOUNT BILLED TO AND COLLECTED FROM TRANSPORTATION CUSTOMERS FOR FRANCHISE FEES ASSESSED ON THE VALUE OF GAS TRANSPORTED ON BEHALF OF THE CUSTOMER; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Town of Westlake finds that it is appropriate to include all amounts collected by Atmos Mid-Tex in the definition of gross receipts for the purposes of calculating franchise fees due to the Town of Westlake; and WHEREAS, the Town Council finds that the passage of this Resolution is in the best interest of the citizens of Westlake.. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety SECTION 2: That the Town Manager is authorized to send Atmos Mid-Tex a letter to inform Atmos Mid-Tex that the Town of Westlake elects to include franchise fees for all amounts billed to and collected from customers for franchise fees and to include all amounts billed and collected from transportation customers for franchise fees assessed on the value of gas transported and that such amounts are to be included in the definition of gross receipts for the purposes of calculating franchise fees owed to the Town of Westlake, Texas. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 1040 Page 1 of 2 SECTION 4. That this resolution shall become effective from and after its elate of passage. PASSED AND APPROVED ON THIS 13TH DAY OF DECEMBER 2010. Of-- ATTEST: FATTEST: Laura L. Wheat, Mayor TFX A S - Kell Edw s, Town Secretary Thomas E. er, awn M pager APPRO S FO M: L. tanto L To Attorney Resolution 10-40 Page 2 oft Town of Westlake Mr. David Park Vice President Rates and Regulatory Affairs Atmos Energy Corporation, Mid-Tex Division 5420 LBJ Freeway, Ste. 1862 Dallas, TX 75240 RE: Franchise Fees on Franchise Fees Dear Mr. Park: To the extent that the following paragraphs are applicable, the selections below indicate the City's interpretation of the franchise agreement between the City and Atmos Energy Corporation ("Atmos") as well as the election of the City to receive an additional payment consistent with the City's historical interpretation of the franchise agreement. The City has selected `Y' to indicate agreement or `N' to indicate disagreement. Franchise Fees other than on Value of Gas Transported ( Y�r N The City intends that all amounts billed to and collected from customers for �J franchise fees (other than those assessed on the value of transported gas)be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. borN The City elects to receive an additional payment for the period of time beginning with January 1, 2009 that franchise fees (other than those assessed on the value of transported gas) were not included in the calculation of the City's franchise fee payment. Franchise Fees on Value of Gas Transported DYr N The City intends that the amount billed to and collected from transportation customers for franchise fees assessed on the value of gas transported on behalf of the customer be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. &r N The City elects to receive an additional payment for the period of time beginning with January 1, 2009 that franchise fees on the value of transported gas were not included in the calculation of the City's franchise fee payment. 3 Village Circle,Suite 202*Westlake,Texas 76262 Metro:817-430-0941 ♦Fax:817-430-1812•www.westlake-tx.org It is understood that by indicating agreement to any or all of the above statements, the City explicitly agrees that any additional franchise fee amounts paid to the City by Atmos are recoverable by Atmos from Company's customers within the City. It is also understood that by indicating disagreement with or choosing not to select any or all of the above statements, the City is explicitly releasing Atmos from any future claims with respect to those items. The City understands that this election letter must be returned to David Park at the address above and postmarked on or before December 31, 2010 after which the City shall be deemed to have rejected the options contained herein. Sincerely, V3 Deccrrber 20I0 51ature - Date -I�T nr-aS E ner Printed Name -&,h o-�' WesF V&V-)e Te-Y�2s-- Title City