The sole right of control, easement, use, ownership of and title
to the public streets, sidewalks, highways, bridges, alleys, public
places, and other real property of the city is hereby declared to
be inalienable, except by ordinance adopted by a majority of the city
council.
The city shall have the power to buy, sell, construct, lease,
maintain, operate, and regulate public services and utilities within
or without the city limits, and to distribute and sell such utility
services, including but not limited to water, gas, electric, telephone,
cable, waste management and transportation services. The city shall
have all regulatory powers except as may be granted or limited by
the Constitution or the laws of the State of Texas.
The city council has the power, by ordinance, to grant, renew,
extend, and amend franchises of public utilities operating within
the city. A franchise shall not be granted for an indeterminate period
nor for a term of more than 20 years from the date of the grant, renewal,
or extension.
The grant of a franchise to construct, maintain, or operate
a public utility and the renewal or extension of the grant shall not
be exclusive.
Whether or not it is stated in the franchise ordinance, a grant,
renewal, extension, or amendment of a public utility franchise is
subject to the right of the city council:
(a) to terminate
the franchise by ordinance at any time for the failure of the franchise
holder to comply with the terms of the franchise, this power to be
exercised only after notice and hearing and an opportunity to correct
the default.
(b) to require
expansion and extension of plant facilities that are necessary to
provide adequate service to the public and to maintain 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) to impose
regulations that insure safe, efficient, and continuous service to
the public.
(e) to examine
and audit at any time during regular business hours the accounts and
records of the utility which relate to the city’s regulation.
(f) to prescribe
the form of accounts kept by each utility; provided, that the utility
is in compliance with this paragraph if it keeps its accounts in accordance
with the uniform system of accounts prescribed for the utility by
a federal or state agency with regulatory authority over the utility.
(g) to require
the utility to compensate the city for use of the city’s public
rights-of-way and other public property.
(h) 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 in a format as specified
by the city.
(i) To require
the public utility to give notice to any subscriber to its services
prior to permanent or temporary discontinuance of such service by
the public utility, except in cases of emergency, and to require that
no officer, agent, servant or employee of the public utility nor any
vehicles under their control shall make use of, go upon or cross any
private property without first obtaining the permission of the owner
or occupant, except in cases of emergency, and to provide a penalty
for the violation of such requirements.
(j) To impose
other reasonable 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.
A public utility franchise may not be transferred without approval
by ordinance of the city council. This restriction on transfer does
not prevent the franchise holder from pledging the franchise as security
for a valid debt or mortgage.
A franchise holder shall not assign a value to the franchise
granted by the city for use in calculating reasonable rates and charges
for utility service within the city nor for determining just compensation
to be paid by the city for public utility property which it may acquire
by condemnation or otherwise.