All ordinances granting, amending, renewing, or extending franchises
for public utilities shall be read at two separate regular meetings
of the Council, and shall not be finally passed until thirty (30)
days after the first reading. No such ordinance shall take effect
until thirty (30) days after its final passage; and pending such time,
the full text of such ordinance shall be published once in the official
newspaper of the City of Coleman and the expense of such publication
shall be borne by the proponent of the franchise. The granting of
franchises by the City Council shall be governed by the following
regulations:
(a) No exclusive
franchise or privilege shall ever be granted.
(b) No determinate
or fixed term franchise shall ever be granted for a longer term than
twenty years.
(c) Within
five (5) years prior to the date of expiration of any fixed term franchise,
the City Council may grant a new franchised to commence upon the expiration
date of the franchise in question, or grant a new franchise if the
existing franchise is released.
(d) All
holders of franchises from the City, for public services, other than
telecommunications services, and electrical services, their successors
or assigns, as compensation for the right or privilege of such franchise
enjoyed, for services rendered in the City, shall pay to the City
a percentage of the gross receipts of business activities of the franchise
holder. Such sum shall be exclusive of, and in addition to, all special
assessments and taxes of whatever nature, including ad valorem taxes
upon the value of the franchise and other property of the franchise
holder. The sum due hereunder shall be due and payable in accordance
with the specific ordinance.
No value of any franchise granted by the City under this Charter
shall be considered in fixing reasonable rates and charges for utility
service within the City, or determining the just compensation to be
paid by the City for property which the City may acquire by condemnation
or otherwise.
The Council, where not in conflict with State or Federal law and regulation, shall have full power after notices and hearing, to regulate by ordinance the rates, charges, and fares of every franchise holder operating in the City, with the exception of telecommunication services (see Section
11.04 above) provided that no such ordinance shall be passed as an emergency measure. Every franchise holder who shall request an increase in rate, charges, or fare, shall have, at the hearing of the Council called to consider such request, the burden of establishing by clear, competent, and convincing evidence, the value of its investment property allocable to service in the City, and amount and character of its expenses and revenues connected with the rendering of such service. In connection with the City Council’s power to regulate rates and service, Articles 1119 through 1124A, both articles inclusive, of the 1925 Revised Civil Statutes of the State of Texas, as now or hereafter amended, are hereby adopted as a part of this Charter. No franchise holder shall institute any legal action to contest any rate, charge, or fare, fixed by the Council, until such franchise holder has filed a motion for rehearing with the Council, specifically setting out each ground of its complaint against the rate, charge, or fare, fixed by the Council, and until the Council shall have acted upon such motion. Such motion shall be deemed overruled unless acted upon by the Council within a reasonable time, not to exceed ninety (90) days from the filing of such motion for rehearing; provided that the Council may, by resolution, extend such time limit for acting on said motion for rehearing, from ninety (90) days to one-hundred eighty (180) days.
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 thereunder shall ever be construed to deprive any such property
owners of the right of action for damage or injury to their property,
as now or hereafter provided by law.
All extensions of public utilities within the City 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 original grant
hereinbefore made. The right to use and maintain any extensions shall
terminate with the original grant. In case of an extension of 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.
Permits unconditionally revocable at the will of the governing
body, for minor or temporary privileges, in the streets, public ways,
and public places of the City, may be granted and revoked by ordinances
from time to time; and such permits shall not be deemed franchises
as the term is used in this Charter.
All franchises heretofore granted are recognized as contracts
between the City of Coleman and the grantee. Contractual rights, as
contained in any such franchises, shall not be impaired by the provisions
of this Charter, except that the power of the City of Coleman to exercise
the right of eminent domain in the acquisition of any utility property
is in all things reserved, and except the general powers of the City
heretofore existing and herein provided for to regulate the rates
and services of a utility, which shall include the right to require
adequate and reasonable extension of plant and services, and the maintenance
of the plant fixtures at the standard necessary to render the highest
reasonable quality of utility service to the public, shall be reserved.
Every franchise hereafter granted shall be held subject to all the
terms and conditions contained in the various section of this Article
whether or not such terms are specifically mentioned in the franchises.
Nothing in this Charter shall operate to limit in any way, as specifically
stated, the discretion of the Council or the electors of the City,
in imposing terms and conditions, as may be reasonable, in connection
with any franchise grant; including the right to require such compensation
of rental as may be permitted by the laws of the State of Texas.
Within six months after this Charter takes effect, every owner
of a franchise shall file with the City, as may be prescribed by ordinance,
certified copies of all franchises owned or claimed, or under which
such utility is operated in the City of Coleman. The City shall compile
and maintain a public record of franchises.
Accounts shall be kept for such 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 liability, subdivided
by classes, deprecation reserve, other reserves, 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, and
the source of the funds expended for such capital purposes. They shall
show, as nearly as possible, the cost of any service furnished 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 condition
of said public utility and the financial results of such City ownership
and operation, giving the information specified in this Section; and
such additional data as the Council shall deem expedient.