In addition to the City’s power to buy, own, construct, maintain and operate utilities and to manufacture and distribute electricity or anything else that may be needed or used by the public, the City Council shall have power by ordinance to grant, amend, renew, cancel for cause and extend all franchises of all public utilities of every character operating within the City of Denver City, and for such purposes is granted full power. All ordinances granting, amending, renewing, canceling for cause, or extending franchises for public utilities shall be passed as is hereinbefore provided for all other ordinances.
All grants, renewals, extension, or amendments of public utility franchises, whether it be so provided in the ordinance or not, shall be subject to the right 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 not comply with the terms of the franchise, such power to be exercised only upon due notice and hearing.
B.
To require an 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
D.
To prescribe the form of accounts kept by each such utility; provided that, if the utility shall keep its accounts in accordance with the uniform system of accounts for said utility prescribed by the national Association of Railroad and Public Utility Commissioners, the Federal Power Commission, the Railroad Commission of Texas, the Federal Communication Commission, their successor or successors, this shall be deemed sufficient compliance with this paragraph. The City shall have the right 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 local operations by each such public utility.
E.
To impose such reasonable regulations and restrictions as may be deemed desirable or conducive to the safety, welfare, and accommodation of the public.
F.
To require, at any time, such compensation and rental as may be permitted by the laws of the State of Texas.
All extension of utilities within the City Limits shall become a part of the aggregated 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 original grant hereafter made. The right to use and maintain any extension shall terminate with the original grant. 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.
The City Council shall have full power, after due notice and hearing, to regulate by ordinance the rates and service of every public utility operating in the City of Denver City as such powers are conferred upon it by State Statute. The City shall provide no city-owned or operated utility and services beyond its boundaries except when in contradiction of State Law or as specifically approved by the Council. The rates for such utilities and services are to be established such that the City extends them only at a reasonable profit. Rates for City utilities and services provided outside the boundaries of the City shall be reviewed and adjusted annually as part of the fiscal plan.
Certified copies of all franchises operated in the City of Denver City shall be maintained in the office of the City Secretary and be available for public inspection as a public record.
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, 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 to or rendered by any such utility to any other City or Governmental Department.
The City shall have the power through eminent domain proceedings to acquire any public utility operating with or without a franchise and furnishing a public service to the city and its inhabitants. The City must follow procedures established by State Law to acquire the proposed utility.
This power shall be in addition to and cumulative of any other powers of acquisition granted to or reserved by the city in a franchise ordinance.
Prior to the purchase of any existing franchised public-utility system, either according to the terms of the franchise or by eminent domain, the City Council must submit the question of the purchase to the qualified voters of the city, and the same must be approved by a majority of the qualified voters voting in the election.
No public-utility franchise shall be transferred by the holder thereof, except with the approval of the Council expressed by ordinance; provided, however, that such approval of the Council shall not be withheld with respect to a transfer of a franchise incident to the creation of foreclosure of a mortgage or other instrument of security executed in good faith for the purpose of financing or refinancing the public-utility operations of the franchise holder.