ARTICLE VIII. - PUBLIC UTILITIES, PUBLIC SERVICES, PROPRIETARY ENTERPRISES AND FRANCHISES

Section 8.01. - Public Utilities, Public Services and Proprietary Enterprises.#

The City shall not provide any public utility, public service or proprietary enterprise outside the City limits except by a written contract with the prospective customer requesting such services and only when the provision of such services appears to be in the best interests of the City.

Section 8.02. - Franchise Value Not Allowed In Rate Regulation.#

No value shall be assigned to any franchise granted by the City under this Charter in fixing reasonable rates and charges for utility service or any other service provided under authority of a franchise within the City or in determining the just compensation to be paid by the City for public utility, public service or proprietary enterprise property which the City may acquire by condemnation or otherwise.

Section 8.03. - Regulation of Franchises.#

All grants, removals, extensions, or amendments of public utility, public service and proprietary enterprise franchises should be negotiated to include, to the extent possible, the following right of City Council to: A.

Forfeit the franchise by ordinance for failure of the holder to comply with the terms of the franchise, this Charter, any applicable statute of the State of Texas or the rule of any applicable governmental body. This right may be exercised only after written notice to the franchise holder stating how the holder has failed to comply with the terms of the franchise and setting a reasonable time for the correction of the failure. Forfeiture may occur only after a hearing and after expiration of a reasonable time for correction;

B.

Impose reasonable regulations to ensure safe, efficient and continuous service to the public;

C.

Require expansion, extension, enlargement and improvement of plant and facilities as necessary to provide adequate service to the public;

D.

Require franchise holders to furnish to the City, without cost to the City, full information regarding the location and precise description of all facilities of the franchise holder in, over and under the City; and to regulate and control the location, relocation and removal of the facilities;

E.

Require compensation, franchise fees and fees for the rental, use and occupancy of City property not inconsistent with state law;

F.

Collect from public utilities, public service providers and proprietary enterprises operating in the City a proportionate part of the increased cost of City operations and services attributable to the occupancy by or use of public property by the public utility, public service or proprietary enterprise; to collect a proportionate part of the cost of City operations and services required as a result of damage to or disturbance of public property caused by the public utility, public service or proprietary enterprise; and to compel the public utility, public service provider or proprietary enterprise to perform at its own expense repairs or other operations made necessary by the occupancy or use of or damage to or disturbance of public property by the public utility, public service or proprietary enterprise;

G.

Require one franchise holder to allow other holders to use its facilities if the City Council considers that joint use to be in the public interest. In the event of joint use, reasonable terms of use may be imposed by and a reasonable rental shall be paid to the owner for the use of the facility. The inability of franchise holders to agree on terms and rentals for the use of each other's facilities shall not be an excuse for failure to comply with a joint use requirement by the City Council;

H.

Require franchise holders to keep records that accurately reflect the value of the franchise holder's property used and useful in rendering its service to the public and which reflect the franchise holder's expenses, receipts and profits of all kinds;

I.

Examine and audit, at any time during business hours, the accounts and other records of the franchise holders;

J.

Require reports on the operations of public utilities, public services and proprietary enterprises in the form and containing information that the City Council directs;

K.

Establish specifications for materials and construction for public utilities, public services and proprietary enterprises used within or beyond the limits of the City; and

L.

Prescribe penalties for noncompliance with any provision of this Article or the ordinances pertaining to franchises, public utilities, public services, and proprietary enterprises.

Section 8.04. - Sale of Public Utility, Public Service or Proprietary Enterprise.#

No public utility, public service or proprietary enterprise owned or operated by the City shall be sold or leased without the approval of a majority vote of the qualified voters of the City voting at an election called for such purpose. The election shall be held on a uniform election date. The City may authorize the renting of City owned facilities for temporary use by an individual, organization or group.