In addition to the Town’s power to buy, construct, lease,
maintain, operate and regulate public utilities and to manufacture,
distribute, and sell the output of such utility operations, the Town
shall have such further power 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, renew,
and extend all franchises of all public utilities of every character
operating within the Town and, with the consent of the franchise holder,
to amend the same, provided, however, that no franchise shall be granted
for a term of more than twenty (20) years from the date of the grant[,]
renewal, or extension.
No ordinance granting, renewing, extending or amending a public
utility franchise shall be granted until a public meeting shall have
been called and held before final passage and until such ordinance
shall have been approved by a majority of the Council at a regular
meeting. No such ordinance shall become effective until thirty (30)
days after its passage.
No public 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.
No franchise or easement involving the right to use the same
either along, over, across, under or upon the streets, alleys, highways,
parks and public ways shall be valid unless granted in compliance
with the terms hereof.
All grants, renewals, extensions, or amendments of public utility
franchises, whether it be so provided in the ordinance or not, shall
be subject, but not limited, to the right of the Town:
A. To
repeal the same 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, such power to be exercised only after
due notice and hearing.
B. 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.
C. To
establish reasonable standards of service and quality of products
and prevent unjust discrimination in service or rates.
D. To
prescribe the form of accounts kept by each such utility.
E. To
impose regulations to insure safe, efficient and continuous service
to the public. The franchise holder in opening and refilling of all
earth openings shall re-lay the pavement and do all other work necessary
to complete restoration of streets, sidewalks or grounds to a condition
equally as good as or better than when disturbed.
F. To
regulate, locate or prohibit the erection of any and all poles, wires
or other utility equipment, conveyance or structure, on the streets,
alleys and public places of said Town, and to cause the same to be
changed, removed, altered, increased, diminished, placed underground,
or be supported by poles of such material, kind, quality and class
as may be determined by said Council whether same be telegraph, telephone,
electric or otherwise, and to enforce the provisions hereof by appropriate
action in any court of competent jurisdiction.
G. To
employ experts to advise and assist in determining a rate and equitable
profit to a public utility.
All persons, corporations, or association of persons, to whom
a franchise or privilege may hereafter be granted shall pay to the
Town for such privileges such compensation therefor as may be fixed
by the Council in the grant of such franchise or privilege. Such compensation
as fixed by contract or provided by any Texas Statute or Statutes
and any amendments thereto, and/or federal law or regulations corresponding
to the same, shall become due and payable at such time as the Council
shall fix in the grant of such franchise or privilege, and upon the
failure on the part of any person, corporation, or association of
persons to pay said compensation when due, the franchise or privilege
as enjoyed by him or them, shall, after thirty (30) days from such
date become forfeited.
In accordance with any Texas statute or statutes and any amendments
thereto, and/or federal law or regulations corresponding to the same,
the Council shall determine, fix and regulate the charges, fares or
rates of any person, firm or corporation that may now or hereafter
enjoy a franchise or exercise any other public privilege from said
Town, and of any and all public utilities of whatsoever kind, and
to prescribe the kind of service to be furnished to the public by
such person, firm or corporation, and the manner in which it shall
be rendered and from time to time alter or change such rules, regulations
and compensation, after reasonable notice, to, and a hearing of, the
owners of such utilities, and after a public hearing thereon, provided
that the rates, charges and fares so fixed shall at all times be reasonable,
and permit a reasonable net return on the actual value of the physical
properties and equipment of such utilities. In this connection, the
Council may require any utility or franchise holder to furnish such
financial reports as the Council may request, including reports of
actual operating costs and the financial condition of its operation
within the Town of Highland Park.