(A) 
The Town shall have the full power, to the extent the same is conferred by the Constitution and laws of the State of Texas, to own, lease, operate, prohibit, regulate and control any public utility within or without the limits of the Town and to provide for the compensation and rental to be paid to the Town by any public utility for the use of its streets, highways and public areas.
(B) 
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 regulatory and other powers as may now or hereafter be granted under the Constitution and laws of the State of Texas.
(A) 
The Town Council, upon a vote of a majority of the members of the Town Council then qualified and serving, shall have power by ordinance to grant, renew and extend all franchises of public utilities of every character operating within the Town and for such purposes is granted full power. The term “public utility” as used herein is construed to mean any person or entity furnishing to the public any general public service, including, but not limited to heat, light, gas, power, telephone service, communication services, community antenna or cable television service, sewer service and the treatment thereof, water, wrecker service, the carrying of passengers for hire, or any other public service whereby a right to, in part, appropriate or use the streets, highways, or other property of the Town, as necessary or proper is granted.
(B) 
Any ordinance granting, renewing or extending franchises shall not take effect until at least thirty (30) days after its passage; and during such thirty (30) day period the descriptive caption of the ordinance shall be published at least twice in the official newspaper(s) of the Town, the expense of the publication being borne by the proponents of the franchise.
(C) 
No franchise shall be granted for a term of more than twenty (20) years from the date of the grant, renewal or extension of any franchise.
(D) 
No franchise is transferable, except with the approval of the Town Council by a vote of a majority of the members of the Town Council then qualified and serving. The franchise holder, however, may pledge franchise assets as security for a valid debt or mortgage.
Franchises granted by the Town under this Charter shall be considered to be 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 which the Town may acquire by condemnation or otherwise.
All grants, renewals, extensions, or amendments of public utility franchises, whether so provided in the ordinance or not, shall be subject to the right of the Town Council:
(A) 
To repeal the same by ordinance at any time upon the failure of the grantee to comply with the terms of the franchise, the ordinance, this Charter, any applicable statute of the State of Texas, or the rule of any applicable governmental body, such power to be exercised only after written notice to the franchise holder stating wherein the franchise holder has failed to comply with the terms of the franchise, and if said default is not cured within a reasonable time such power shall be exercised only after the grantee has been given the opportunity for hearing;
(B) 
To establish reasonable standards of service and quality of products and prevent unjust discrimination in service or rates;
(C) 
To require such expansion, extension, and improvements of plants and facilities as are necessary to provide adequate service to the public;
(D) 
To require that maintenance of facilities be performed at the highest reasonable standard of efficiency;
(E) 
To prescribe the accounts and accounting system to be used by a franchise holder so that they will accurately reflect the value of the property used in rendering its service to the public; and the expenses, receipts, and profits of all kinds of such franchises. (It shall be deemed sufficient compliance with this paragraph if the franchisee keeps its accounts in accordance with the uniform system established by an applicable Federal or State agency for such service.)
(F) 
To examine and audit, at any reasonable time during regular business hours, the accounts and other records of any franchise holder; and to require annual and other reports including reports on operations within the Town;
(G) 
To impose such reasonable regulations and restrictions as may be deemed desirable or conducive to the health, safety, welfare, and accommodation of the public;
(H) 
To require such compensation and rental as may be permitted by the laws of the State of Texas;
(I) 
To require that the franchise holder restore to the applicable Town standards at that time, at the expense of the franchise holder, all public and private property damaged or destroyed by construction, maintenance, or removal by such franchise holder; and
(J) 
To require a franchise holder to furnish to or make available for inspection by the Town, within a reasonable time following request of the Town, at the expense of the franchise holder, a general map outlining current location, character, size, length, depth, height and terminal of all facilities over and under property within the Town and its extraterritorial jurisdiction. If the Town Council determines that a franchise holder’s compliance with these requirements raises legitimate security issues, the Town Council may address those issues and these requirements in any manner determined proper by the Town Council.
All extensions of public utility service shall become a part of the aggregate property of the public utility, shall be operated as such, and shall be subject to all the obligations and reserved rights contained in this Charter. The extension of any public utility shall be considered a part of the original grant and shall be terminable at the same time and under the same conditions as the original grant.
All franchises heretofore granted are recognized as contracts between the Town and the grantee. 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 Town to exercise the right of eminent domain in the acquisition of any utility property is in all things reserved; and except that the general power of the Town, 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 the maintenance of the plant and equipment at the highest reasonable standard of efficiency. All franchises hereafter granted shall be held subject to all 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 Town Council or voters of the Town in imposing terms and conditions as may be reasonable in connection with any franchise grant.
The Town Council, subject to State and Federal laws, shall have full power, after due notice and hearing, to regulate by ordinance the rates, charges, and fares of every public utility franchise holder operating in the Town. Every franchise holder who shall request an increase in rates, charges or fares shall have, at a hearing of the Town Council called to consider such request, the burden of establishing by clear, competent, and convincing evidence the value of its investment property allocable to service in the Town, the amount and character of its expenses and revenues connected with the rendering of such service, and any additional evidence required by the Town Council. If no agreement between the Town Council and the franchise holder can be reached on such request for an increase in rates, charges, or fares, the Town Council may select and employ rate consultants, auditors and attorneys to investigate and, if necessary, litigate such request. The franchise holder shall reimburse the Town for its reasonable and necessary expenses so incurred and may be allowed to recover such expenses through its rates during the period of recovery if authorized to do so by the Town Council.
The Town shall have the power to license, levy and collect fees in order to license any lawful business, occupation or calling subject to control pursuant to the police powers of the State of Texas and/or for any other purpose not contrary to the Constitution and laws of the State of Texas.