The sole right of control, easement, use, ownership of and title to the public streets, sidewalks, highways, bridges, alleys, public places, and other real property of the Town is hereby declared to be inalienable, except by ordinance adopted by a majority of the Town Council.
The Town shall have the power to buy, sell, construct, lease, maintain, operate, and regulate public services and utilities within and without the Town limits, and to manufacture, distribute, and sell such utility services, including but not limited to water, gas, electric, telephone, cable, waste management, recycling, and transportation services. The Town shall have such regulatory powers as may now or hereafter be granted under the Constitution and laws of the State of Texas.
The Council shall have the power by ordinance, to grant, amend, renew, and extend all franchises for all utilities of every character operating within the Town and, to amend the same, provided, however, that no franchise shall be granted for an indeterminate term, and that no franchise shall be granted for a term of more than twenty (20) years from the date of the grant, renewal or extension. Council action on all ordinances granting, renewing, extending or amending a utility franchise shall comply with the applicable provisions set forth in this Charter.
No utility franchise shall be transferable except with the approval of the Council expressed by ordinance. The term “transferable” as used herein, shall not be construed in such a manner as to prevent the franchise holder from pledging said franchise as security for a valid debt or mortgage.
Franchises granted by the Town are of no value in fixing reasonable rates and charges for utility service within the Town and in determining the just compensation to be paid by the Town for public utility property that the Town may acquire by condemnation or otherwise.
All grants, renewals, extensions, or amendments of utility franchises shall be subject to the following rights of the Town, whether or not specifically stated in the franchise ordinance:
(1) 
To repeal the franchise by ordinance at any time for failure to begin construction or operation within the time prescribed or otherwise to comply with the terms of the franchise.
(2) 
To require an adequate extension of plant and service as is necessary to provide adequate service to the public, and maintenance of the plant and fixtures at the highest reasonable standard of efficiency.
(3) 
To require at any time compensation and rental as may be permitted by the laws of the State of Texas for use of public streets, sidewalks, highways, alleys and public places.
(4) 
To require reasonable standards of service and quality of product and prevent rate discrimination.
(5) 
To examine and audit the accounts and other records of any such utility and to require annual and other reports on local operations of the public service or utility as may be allowed by law.
(6) 
To require the franchisee to restore at the franchisee’s expense, all public or private property to a condition equally as good as or better than before disturbed by construction, repair or removal.
(7) 
To require every franchisee to furnish within a reasonable time to the Town, without cost to the Town, a general map, with updates outlining the location, character, size, length, and terminals of all facilities of such franchisee in, over, and underground of property in the Town and to provide detailed information regarding the same upon request of the Town.
(8) 
To impose other reasonable regulations, requirements, and conditions as may be deemed necessary to promote the health, safety, welfare, or accommodation of the public and to insure safe, efficient and continuous service to the public.
(9) 
To require the franchisee to give notice to any subscriber to its services prior to permanent or temporary discontinuance of such service by the franchisee, except in cases of emergency, and to require that no officer, agent, servant or employee of the franchisee nor any vehicles under their control shall make use of, go upon or cross any private property without first obtaining the permission of the owner or occupant, except in cases of emergency, and to provide a penalty for the violation of such requirements.
(10) 
To require every franchisee to indemnify and hold harmless the Town against any liability, claims or damages (including attorney’s fees and expenses) for injury to persons, including death, or damages to any property, arising out of any intentional or negligent act or omission of the franchisee, or any of its officers, agents, or employees, in connection with the franchisee’s construction, maintenance and operation of the franchisee’s facilities in the Town.
(a) 
The Council shall have full power after due notice and public hearing to regulate by ordinance the rates, charges and fares of all public utility franchise holders operating in the Town as authorized by state and federal law.
(b) 
The Council, upon receiving a request from a public service desiring a change in rates, charges, or fares, shall call a meeting for consideration of such change.
(c) 
A holder of a franchise to provide a public service or utility in the Town must show the necessity for such change by establishing by clear, competent, and convincing evidence:
(1) 
Cost of its investment for service in the Town;
(2) 
Amount and character of expenses and revenues connected with rendering the service; and
(3) 
Any additional evidence required by Council.
(d) 
The Council may, if not satisfied with the sufficiency of the evidence furnished by the public service, select and employ rate consultants and auditors to investigate any requests or changes in rates, charges, or fares. The public service shall reimburse the Town for the Town’s reasonable and necessary expenses incurred.
All extensions of service of utilities within the Town limits shall become a part of the aggregate property of the utility, shall operate as such, and shall be subject to all the obligations and reserved rights contained in this Charter and in any original grant hereafter made. The right to use and maintain any extension shall terminate with the original grant and shall be terminable as provided in this Chapter. In the case of extension of a utility operated under a franchise hereafter granted, such right shall be terminable at the same time and under the same conditions as the original grant.
All franchises granted before ratification of the Charter are recognized as contracts between the Town and the grantee, shall continue in full force and effect, and the contractual rights contained in any such franchise shall not be impaired by the provisions of the Charter.