The right of control and use of the public streets, highways, sidewalks, bridges, alleys, parks, public squares, and all public places and real property of the Town is hereby declared to be inalienable by the Town, except by ordinances not in conflict with the provisions of this Charter. No act or omission by the Council, an Officer or Agent of the Town, or any third party shall be construed to grant, renew, extend, or amend, expressly or by estoppel or implication, any right, franchise, or easement affecting such public streets, highways, sidewalks, bridges, alleys, parks, public squares, and all public places and real property of the Town, except as provided in this Charter.
The Town shall have the power, right and authority, to buy, construct, lease, maintain, operate and regulate public utilities, and to manufacture, distribute and sell the output of such utilities’ operations. Additionally, the Town shall have all further rights, authorities, and 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 of every character operating within the Town and to amend the same, provided, however, that no franchise shall be granted for an indeterminate term. No grant or franchise to construct, maintain, or operate and no renewal or extension of such grant shall be exclusive. All required publication costs shall be paid by the franchisee.
(Section 10.03 amended by May 9, 2009 election, effected by Ordinance 2009-12, prop. 24, adopted 5/18/09)
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 the public utility property which the Town may acquire by condemnation or otherwise, nothing shall be included as the value of any franchise granted by the Town under this Charter.
All grants, removals, extensions, or amendments of public utility franchises approved after the effective date of this Charter, whether or not it be specifically provided in the ordinance approving a franchise or in a franchise agreement, shall be subject to right and power of the Council:
(a) 
To repeal the franchise ordinance at any time upon the failure of the grantee to comply with any provision of the franchise ordinance, the Charter of the Town, an applicable statute of the State of Texas, or the rules of any applicable governing body;
(b) 
To require proper and adequate extension of plant and service, and the 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) 
At any time, to examine and audit the accounts and other records of any such utility, and to require annual, and other reports, including reports on operations within the Town;
(e) 
To require at any time compensation and rental for use of public streets, sidewalks, highways, bridges, alleys, and public places;
(f) 
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 repair 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;
(g) 
To require every franchisee to furnish within a reasonable time to the Town, without cost to the Town, 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 Town and to provide detailed information on request in a format as specified by the Town;
(h) 
To impose other regulations, requirements, and conditions as may be deemed necessary to promote the health, safety, welfare, or accommodation of the public and to insure safe, efficient and continuous service to the public;
(i) 
To require such compensation and rental as may be permitted by the laws of the State of Texas; and,
(j) 
To require the franchisee to remove, at its sole expense, infrastructure that has not been used for a period of six months or to require a franchisee whose franchise has terminated for any reason to remove, at its sole expense, such infrastructure as the Council may in its discretion require.
The consent of abutting and adjacent property owners shall not be required for the construction, extension, maintenance or operation of any public utility; but, nothing in this Charter, or in any franchise granted hereunder, shall ever be construed to deprive any such property owner of any right of action for damage or injury to this property as now or hereafter provided by law.
All extensions of public utilities within the town limits 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 and in any franchise grant made to such public utility. The right to use and maintain any extensions shall terminate with the termination of the original franchise grant, and shall be terminable as provided in Section 10.04 of this Charter. In case of an extension of a public 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.
All franchises heretofore granted are recognized as contracts between the Town and the franchisee, and 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 utility property is in all things reserved, and except the general power of the Town, to regulate the rates and services of a grantee, which shall include the right to require proper and adequate extension of plant and service and the maintenance of the franchise hereafter granted shall be held subject to all the 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 Council, or voters of the Town, in imposing terms and conditions as may be reasonable in connection with any franchise granted.
Accounts shall be kept for each public utility owned or operated by the Town, in such manner as to show the true and complete financial results of such ownership and operation, including all assets and all liabilities, appropriately subdivided by classes, depreciation reserve, other reserves and surplus; also revenues, operating expenses including depreciation interest payments, rental and other disposition of annual income. The accounts shall show actual capital cost to the Town of each public utility owned, also the cost of all extensions, additions and improvements and the source of funds expended for such capital purposes. They shall show as nearly as possible the cost of any service to or rendered by any such utility to any Town department. The Council shall cause an annual report to be made by a Certified Public Accountant and shall publish such report, showing the financial results of such Town ownership and operation, giving the information specified in this section and such other data as the Council shall deem expedient.
(a) 
The Council shall have the right, power and authority to sell and distribute electricity and water, and to sell and provide for sewer services, and any other utilities, to any person, firm or corporation inside or outside the limits of the Town, and to permit them to connect with said system under contract with the Town, under such terms and conditions as may appear to be for the best interest of the Town.
(b) 
The Council shall have the right, power and authority to prescribe the kind of materials used inside or outside the limits of the Town in the construction of electric, water and sewer utilities, where it furnishes the service, and to inspect the same and require them to keep in good order and condition at all times and to make such rules and regulations as shall be necessary and proper, and prescribe penalties for noncompliance with same.
The Council shall have the absolute right, authority and power after due notice and hearing, to regulate by ordinance, the rates and services of every franchise operating in the Town; and shall have the power to employ, at the expense of the franchisee, expert assistance and advice in determining a reasonable rate and equitable profit to the franchisee. The Council shall also have the right, authority, and power to require at any time or times, detailed reports and financial statements on the operations of any franchise, which reports and statements shall be in such form, and contain such information, as the Council shall prescribe.