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.
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.