The city shall have power to buy, construct, lease, otherwise acquire, own, control, regulate, operate, maintain, repair, expand, improve, sell, and otherwise dispose of public utilities and public services of every kind and nature, including, but not limited to, gas systems, electric systems, telephone systems, transportation systems, water systems, and sewerage systems, within or without the city; the power to provide such services to the residents of the city and others whether inside or outside the city, and to fix rates and charges for services provided by such city-owned and/or city-operated public utilities and public services; the power to exercise the right of eminent domain to obtain land, rights-of-way, or anything whatsoever that may be proper and necessary to carry out the powers herein mentioned; and any and all other powers relating to such public utilities and public services owned and/or operated by the city which it is possible for the city to have under the constitution and general laws of the state and this charter.
The right of control and use of the public streets, highways, sidewalks, alleys, parks, public squares, public places, and other real property of the city is hereby declared to be inalienable by the city, except by ordinances not in conflict with the provisions of this charter. No act or omission by the council or any officer or agent of the city shall be construed to grant, renew, extend, or amend by estoppel or indirection any right, franchise, or easement affecting the public streets, highways, sidewalks, alleys, parks, public squares, public places, and other real property.
The council shall have the power by ordinance to grant, renew, and extend all franchises of all public utilities of every character operating within the city, and with consent of the franchise holder, to amend the same. No franchise shall be for a term of more than twenty-five (25) years from the date of its grant, renewal, or extension. No exclusive franchise shall ever be granted by the city.
Every ordinance granting, renewing, extending, or amending a public-utility franchise shall be read at least two regular meetings of the council, one of which readings must be in full; and shall not be finally acted upon until thirty (30) days after the first reading thereof. Within ten (10) days following the first reading and following final passage of the ordinance, the full text thereof shall be published one time in a newspaper of general circulation within the city, and the expense of such publication shall be borne by the prospective franchise holder. No such ordinance shall become effective until the expiration of thirty (30) days following the date of its final passage by the council, and every such ordinance shall be subject to the referendum procedures provided by state law and this charter.
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 or 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.
Every public-utility franchise, whether so provided therein or not, shall be subject to the right of the council:
(1) 
To forfeit any such franchise by ordinance at any time for failure of the holder thereof to comply with the terms of the franchise, such power to be exercised only after notice and hearing, and a reasonable opportunity to correct the default.
(2) 
To impose reasonable regulations to ensure safe, efficient, and continuous service to the public.
(3) 
To require such expansion, extension, enlargement, and improvement of plants and facilities as are reasonably necessary to provide an adequate service to the public.
(4) 
To require every franchise holder to furnish to the city, without cost to the city, full information regarding the location, character, and extent of all facilities of such franchise holder in, over, and under the streets, alleys, and other public property of the city; and to regulate and control the location, relocation, and removal of any part of such facilities whenever required in the public interest.
(5) 
To collect from every public utility operating in the city such proportion of the expense of excavating, grading, paving, repaving, constructing, reconstructing, draining, repairing, and maintaining alleys, bridges, culverts, viaducts, and other public places of the city as represents the increased cost of such operations resulting from the occupancy of such public places by such public utility, and such proportion of the costs of such operations as results from the damage to or disturbance of such public places caused by such public utility; or to compel such public utility to perform, at its own expense, such operations as above listed which are made necessary by the occupancy of such public places by such utility or by damage to or disturbance of such public places caused by such public utility.
(6) 
To require every franchise holder to allow other public utilities holding a franchise from the city to use its poles or other facilities wherever in the judgment of the council such use is in the public interest; provided, that in such event a reasonable compensation shall be paid such owner of facilities for such use. Provided further, that inability of such public utilities to agree upon the compensation to be paid for use of such facilities shall not be an excuse for failure to comply with such requirement by the council.
(7) 
To require the keeping of accounts in such form as will accurately reflect the value of the property of each franchise holder which is used and useful in rendering its service to the public, and the expense, income, and profits of all kinds of such franchise holder.
(8) 
To examine and audit at any time during business hours the accounts and other records of any franchise holder relevant to the city’s right of regulation.
(9) 
To require annual and other reports on the local operations of the utility, which shall be in such form and contain such information relevant to the city’s right of regulation as the council may prescribe.
(10) 
To require and collect any tax, compensation, and rental not now or hereafter prohibited by the laws of this state.
(11) 
To require such franchise holders who request an increase in rates, charges, or fares to reimburse the city for reasonable expenses incurred in employing rate consultants to conduct investigations, present evidence, and advise the council on such requested increase.
(a) 
The council shall have full power after notice and hearing to regulate by ordinance the rates, charges, and fares of every public-utility franchise holder operating in the city. Any franchise holder requesting an increase in its rates, charges, or fares shall have, at the hearing on such request, the burden of establishing by clear and convincing evidence the fair value of the property of such franchise holder devoted to furnishing service in the city, and the amount and character of its expenses and revenues resulting from rendering such service.
(b) 
The council shall act on any request for a change in rates, charges, or fares within a reasonable time after such request has been presented. 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 sixty (60) days from the filing of such motion.
(a) 
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 procedure to be used in the acquisition of such property shall be that set forth in articles 3264 to 3271, inclusive, title 52, Revised Civil Statutes of the State of Texas. In valuing the property, the measure of damages shall be the fair market value of the physical properties together with its franchise, if any, taken together as one system. 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.
(b) 
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.