The right of control and use of the public streets, highways,
sidewalks, alleys, parks, public squares, and public places of the
City is hereby declared to be inalienable by the City, except by ordinances
not in conflict with the provisions of this Charter. No act or omission
by the Council or any officer or agent of the City shall be construed
to grant; renew, extend, or amend by estoppel or indirection any right,
franchise or easement affecting said public streets, highways, sidewalks,
alleys, parks, public squares, public places and other real property.
The Council shall have the power by ordinance to grant, renew,
and extend all franchises of all public utilities of every character
operating within the City, and with consent of the franchise holder,
to amend the same. Provided, however, that no franchise shall be granted
for an indeterminate term, that no franchise shall be granted for
a term of more than forty (40) years, and that no franchise shall
be granted, renewed, extended, or amended, except on condition that
the City shall have the right at any time within 5 years of the expiration
of the term thereof to purchase the property of the franchise holder
at a price to be determined according to the method agreed upon in
the ordinance granting, renewing, extending or amending the franchise.
The caption of every ordinance granting, renewing, extending,
or amending a public utility franchise shall be read at three regular
meetings of the Council, and shall not be finally acted upon until
thirty (30) days after the first reading thereof. Within five (5)
days following each of the three (3) readings of the caption of the
ordinance, the full text thereof shall be published one time in the
Official Newspaper of the City, and the expense of such publication
shall be borne by the prospective franchise holder. No such ordinance
shall become effective until the expiration of sixty (60) days following
the date of its final adoption by the Council, and every such ordinance
shall be subject to the referendum procedure provided by the Laws
of the State of Texas.
(Amended 5/6/17, amnd. 5; 5/1/2021)
No public utility franchise or ten percent (10%) or more interest
in such, shall be transferred by the holder thereof except with the
approval of the Council expressed by ordinance.
Every grant, renewal, extension, or amendment of a public utility
franchise, whether so provided in the ordinance or not, shall be subject
to the right of the Council:
a. To forfeit
any such franchise by ordinance at any time for failure of the holder
thereof to comply with the terms of the franchise, such power to be
exercised only after notice and hearing.
b. To impose
reasonable regulations to insure safe, efficient and continuous service
to the public.
c. To require
such expansion and extension of plants and facilities as are necessary
to provide adequate service to the public.
d. To require
every franchise holder to furnish to the City, without cost to the
City, full information regarding the location, character, extent and
condition of all facilities of such franchise holder in, over and
under the streets, alleys, and other public property of the City;
and to regulate and control the location, relocation, and removal
of such facilities.
e. To collect
from every public utility operating in the City its fair and just
proportion of the expense of excavating, grading, paving, repaving,
constructing, reconstruction, draining, repairing, maintaining, lighting,
sweeping, and sprinkling such portions of the alleys, bridges, culverts,
viaducts, and other public places and ways of the City as may be occupied
or used in whole or in part by such utilities; or to compel such public
utility to perform as its own expense, its just share of such excavating,
grading, paving, repaving, constructing, reconstructing, draining,
repairing, maintaining, lighting, sweeping and sprinkling.
f. To require
every franchise holder to allow other public utilities to use its
tracks, poles, wires, pipes, or other facilities, including bridges
and viaducts, wherever in the judgment of the Council such use shall
be in the public interest, provided that in such event the Council
shall fix a reasonable rental to be paid to the owner of the facility
for such use, after notice to the interested parties and a hearing
of the facts.
g.
(1) To
prescribe the form of accounts kept by every franchise holder.
(2) To
examine and audit at any time the accounts and other records of any
franchise holder.
(3) To
require annual and other reports, including reports on the local operations
of the utility, which shall be in such form and contain such information
as the Council may prescribe.
h. To require
and collect any compensation and rental not now or hereafter prohibited
by the Laws of this State.
i. To require
such franchise holders who request an increase in rates, charges or
fares, to reimburse the City for reasonable expense incurred in employing
rate consultants to conduct investigations, present evidence and advise
the Council on such requested increase.
Accounts shall be kept for each public utility owned or operated
by the City in such manner as to show the true and complete financial
results of such City ownership and operation, including all assets
appropriately subdivided by classes, depreciation reserve, other reserves
and surplus; also revenues, operating expenses including depreciation,
interest payments, rental and other distribution of annual income.
The accounts shall show the actual capital cost to the City of each
public utility owned, also the costs of all extensions, additions
and improvements and the source of the funds expended for such capital
purposes. They shall show as nearly as possible the cost of any service
furnished to or rendered by any such utility to any other City or
governmental department. The City Council shall annually cause to
be made and published a report showing the financial results of such
City ownership and operation, giving the information specified in
this
All franchises heretofore granted are recognized as contracts
between the City of Katy and the grantee, and the contractual rights
as contained in any such franchise shall not be impaired by the provisions
of this Charter, except that the Power of the City of Katy to exercise
the right of eminent domain in the acquisition of utility property
is in all things reserved; and except the General Power of the City,
heretofore existing and herein provided for to regulate the rates
and services of a grantee; shall include the right to require proper
and adequate extension of plant and service and in the maintenance
of the plant and fixtures at the highest reasonable standard of efficiency.
Every public utility franchise hereafter granted shall be held subject
to all the terms and conditions contained in the various Sections
of this Article whether or not such terms are specifically mentioned
in the franchise. Nothing in this Charter shall operate to limit in
any way, as specifically stated, the discretion of the Council or
voters of the City in imposing terms and conditions as may be reasonable
in connection with any franchise grant.