In addition to the City’s power to buy, construct, lease, maintain, operate and regulate public utilities within or without the City limits, and to manufacture, distribute and sell the commodities or products of such utility operations required and used by the public, the City shall have such further 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, after public hearing, to grant, renew, and extend all franchises for all utilities of every character operating within the City 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 Section 3.13 of this Charter.
No utility franchise shall be transferable except with the approval of the Council expressed by ordinance following a public hearing. 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.
All grants, renewals, extensions or amendments of utility franchises shall be subject to the following rights of the City:
(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 impose regulations to insure safe, efficient and continuous service to the public.
(d) 
To require at any time such compensation and rental as may be permitted by the laws of the State of Texas.
(e) 
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. The franchise holder in opening and refilling of all earth openings shall relay the pavement and do all other work necessary to complete restoration of streets, sidewalks or grounds to a condition equally as good or better as when disturbed.
(f) 
To require every franchisee to furnish within a reasonable time to the City, without cost to the City, a general map, with updates outlining the location, character, size, length, and terminals of all facilities of such franchisee in, over and under ground of property in the City and to provide detailed information on request.
The Council shall have full power after due notice and hearing to regulate, by ordinance, the rates, charges and fares of all public utility franchise holders operating in the City as authorized by state and federal law.
(a) 
The Council may require all utilities operating within the corporate limits of the City to file a sworn annual report of the receipts from the operation of the said business for the current year, how expended, how much thereof for betterments or improvements, the rate of tolls or charges for services rendered to the public, and any other facts or information that the Council may deem pertinent for its use, including reports on operations within the City, in intelligently passing upon any questions that may arise between the City and said public utility and public service companies; said reports to be filed with the City Secretary and preserved for the use of the Council. Such reports shall be reviewed annually by the Council to determine the propriety of the rates being charged.
(b) 
Any utility who shall for a thirty (30) day period willfully refuse or fail to report in the manner required by the Council in accordance with this Charter, or shall file any report, knowing that the same does not truly report the facts about the matters mentioned therein, shall be subject to such penalties as may be prescribed by the Council by ordinance.
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 into different classes, all liabilities subdivided by classes, depreciation reserve and surplus; also revenues, operating expenses including depreciation, interest payments, rental and other disposition of annual income. The accounts shall show the actual capital cost to the City of each public utility owned, also the cost of all extensions, additions and improvements, 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 Council shall annually cause to be made by a certified public accountant and shall publish a report showing the financial results of such City ownership and operation, giving the information specified in this section and such other data as the Council shall deem expedient.
The City shall compile and maintain a public record of utility franchises.
All extensions of service of utilities within the City 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 Section 10.05. In 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.