The City shall have the power to buy, own, sell, construct, lease, maintain, operate and regulate public services and utilities and to manufacture, distribute and sell the output of such services and utility operations. The City shall not supply any utilities service outside the City limits, except by a written contract and/or by ordinance. The City shall have such regulatory and other power as may now or hereafter be granted under the Constitution and laws of the State of Texas.
(Ordinance 767-22 adopted 11/16/2022)
No franchise shall be granted for a term of more than 20 years from the date of the grant, renewal or extension of any franchise.
(Ordinance 767-22 adopted 11/16/2022)
No public service or utility franchise is transferable, except with the approval of the City Council. However, the franchisee may pledge franchise assets as security for a valid debt or mortgage.
(Ordinance 767-22 adopted 11/16/2022)
Franchises granted by the City are of no value in fixing rates and charges for public services or utilities within the City and in determining just compensation to be paid by the City for property which the City may acquire by condemnation or otherwise.
(Ordinance 767-22 adopted 11/16/2022)
In granting, amending, renewing and extending public service and utility franchises, the City reserves unto itself all the usual and customary rights, including, but not limited to, the following rights:
(1) 
To repeal the franchise by ordinance for failure to begin construction or operation within the time prescribed, or for failure to comply with terms of the franchise;
(2) 
To require all extensions of service within the City limits to become part of the aggregate property of the service and operate subject to all obligations and reserved rights contained in this Charter. Any such extension is considered part of the original grant and terminable at the same time and under the same conditions as the original grant;
(3) 
To require expansion and extension of facilities and services and to require maintenance of existing facilities to provide adequate service at the highest level of efficiency;
(4) 
To require reasonable standards of service and quality of product and prevent rate discrimination;
(5) 
To impose reasonable regulations and restrictions to ensure the safety and welfare of the public;
(6) 
To examine and audit accounts and records and to require annual reports on local operations of the public service or utility;
(7) 
To require the franchisee to restore, at franchisee's expense, all public or private property to a condition as good as or better than before disturbed by the franchisee for construction, repair or removal;
(8) 
To require the franchisee to furnish to the City, from time-to-time within a reasonable time following request of the City, at franchisee's expense a general map outlining current location, character, size, length, depth, height and terminal of all facilities over and under property within the City and its extraterritorial jurisdiction; and
(9) 
To require compensation, rent or franchise fees to be paid to the City as may be permitted by the laws of the State of Texas.
(Ordinance 767-22 adopted 11/16/2022)
(1) 
The City Council has the power to fix and regulate the rates and charges of all utilities and public services, consistent with state statutes.
(2) 
Upon receiving written request from a utility or public service requesting a change in rates, or upon a recommendation from the City that rates for services provided by or owned by the City be changed, the City Council shall call a public hearing for consideration of the change.
(3) 
A holder of a franchise to provide a public service or utility in the City must show the necessity for the change in rates by any evidence required by the City Council, including but not limited to, the following:
(i) 
Cost of its investment for service to the City;
(ii) 
Amount and character of expenses and revenues connected with rendering the service;
(iii) 
Copies of any reports or returns filed with any state or federal regulatory agency within the last three years; or
(iv) 
Demonstration that the return on investment, if any, is within state and federal limitations.
(4) 
If not satisfied with the sufficiency of evidence, the City Council may hire rate consultants, auditors and attorneys to investigate and, if necessary, litigate requests for rate changes, the expense of which shall be reimbursed to the City by the franchisee.
(Ordinance 767-22 adopted 11/16/2022)
The City shall have the power to license, levy and collect fees in order to license any lawful business, occupation or calling subject to control pursuant to the police powers of the State of Texas and/or for any other purpose not contrary to the Constitution and laws of the State of Texas.
(Ordinance 767-22 adopted 11/16/2022)