The Town shall have the power to buy, own, sell, construct, lease, maintain, operate and regulate public services and utilities and to manufacture, distribute and sell the output of such services and utility operations. The Town shall not supply any utilities service outside the Town limits, except by a written contract and/or by ordinance. The Town shall have such regulatory and other power as may now or hereafter be granted under the Constitution and laws of the State of Texas.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
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. Approval of any franchise requires a majority vote of the full membership of the Town Council.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
No public service or utility franchise is transferable, except with the approval of the Town Council. However, the franchisee may pledge franchise assets as security for a valid debt or mortgage.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
Franchises granted by the Town are of no value in fixing rates and charges for public services or utilities within the Town and in determining just compensation to be paid by the Town for property which the Town may acquire by condemnation or otherwise.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
In granting, amending, renewing and extending public service and utility franchises, the Town reserves unto itself all the usual and customary rights, including, but not limited to, the following rights:
(A) 
To repeal the franchise by ordinance for failure to begin construction or operation within the time prescribed, or for failure to comply with terms of the franchise;
(B) 
To require all extensions of service within the Town limits to become part of the aggregate property of the service and operate subject to all obligations and reserved rights contained in this Charter. Any such extension is considered part of the original grant and terminable at the same time and under the same conditions as the original grant;
(C) 
To require expansion and extension of facilities and services and to require maintenance of existing facilities to provide adequate service at the highest level of efficiency;
(D) 
To require reasonable standards of service and quality of product and prevent rate discrimination;
(E) 
To impose reasonable regulations and restrictions to insure the safety and welfare of the public;
(F) 
To examine and audit accounts and records and to require annual reports on local operations of the public service or utility;
(G) 
To require the franchisee to restore, at franchisee’s expense, all public or private property to a condition as good as or better than before disturbed by the franchisee for construction, repair or removal;
(H) 
To require the franchisee to furnish to the Town, from time to time within a reasonable time following request of the Town, at franchisee’s expense 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; and
(I) 
To require compensation, rent or franchise fees to be paid to the Town unless prohibited by the laws of the State of Texas.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
(A) 
The Town Council has the power to fix and regulate the rates and charges of all utilities and public services, unless prohibited by state statutes.
(B) 
Upon receiving written request from a utility or public service requesting a change in rates, or upon a recommendation from the Town that rates for services provided by or owned by the Town be changed, the Town Council shall call a public hearing for consideration of the change.
(C) 
A holder of a franchise to provide a public service or utility in the Town must show the necessity for the change in rates by any evidence required by the Town Council, including but not limited to, the following:
(1) 
Cost of its investment for service to the Town;
(2) 
Amount and character of expenses and revenues connected with rendering the service;
(3) 
Copies of any reports or returns filed with any state or federal regulatory agency within the last three (3) years; or
(4) 
Demonstration that the return on investment, if any, is within state and federal limitations.
(D) 
If not satisfied with the sufficiency of evidence, the Town Council may hire rate consultants, auditors and attorneys to investigate and, if necessary, litigate requests for rate changes, the expense of which shall be reimbursed to the Town by the franchisee.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)
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.
(Resolution 2015-031 adopted 5/16/15; Resolution 2021-237 adopted 5/11/21)