City of McAllen, TX DIVISION 3 SHARYLAND UTILITIES, L.P. [1]

ORDINANCE NO. 2010-62

Adopted November 22, 2010

Expires December 1, 2015

WHEREAS, Sharyland Utilities, L.P., a Texas Limited Partnership (hereinafter referred to as "SU"), provides electric delivery services within the incorporated boundaries of the City of McAllen, Texas (hereinafter referred to as the "City"); and

WHEREAS, SU will construct and maintain certain items of physical plant necessary to deliver electric service within said area; and

WHEREAS, it is to the mutual advantage of both the City and SU that an agreement should be entered into by the City and SU establishing the conditions under which SU shall construct and maintain its physical plant in the City in the future;

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF McALLEN, TEXAS THAT:

[1] Editor's note—Printed herein is an electric franchise of the city, as adopted by Ord. No. 2010-62, adopted on Nov. 22, 2010. Amendments to the franchise are indicated by parenthetical history notes following amended provisions. The absence of a history note indicates that the provision remains unchanged from the original ordinance. Obvious misspellings and punctuation errors have been corrected without notation. For stylistic purposes, a uniform system of headings, catchlines, capitalization, citation to state statutes, and expression of numbers in text has been used to conform to the Code of Ordinances. Additions made for clarity are indicated by brackets. For a complete derivation of Div. 3 see the Code Comparative Table at the end of this volume. Ord. No. 2015-97, adopted Nov. 23, 2015, approved a five-year extension to the Sharyland Utilities Franchise Agreement until Dec. 1, 2020.

Section I [Grant of franchise.]

That there is hereby granted to SU, its successors and assigns, herein called the "Grantee", the right, privilege, and franchise, until December 1, 2015 to construct, maintain, and operate in the present and future streets, alleys, and public utility rights-of-way or easements (collectively referred to as "public rights-of-way") of the City of McAllen, Texas as the limits of the City now exist and as they may hereafter be extended covering the area described in Exhibit "A" attached hereto and incorporated herein, and its successors, electric light and power lines, with all necessary and desirable appurtenances (including underground conduits, poles, towers, wires and transmission lines, and telegraph and telephone wires for its own use for the purposes for which this franchise is granted) for the purpose of delivering electricity to the City, the inhabitants thereof, and persons and corporations within and beyond the limits thereof, for light, heat, power and other related electrical public utility purposes.

Section II [Location of poles, towers, etc.]

(a) Poles, towers, power lines, and appurtenances shall be constructed so as not to unreasonably interfere with the flow of storm water in any gutter or drain, or the existing use of the public rights-of-way by any other franchises, and the City may make and impose reasonable requirements fixing the location of poles, towers and conduits, provided that no such requirement shall be unreasonably burdensome upon Grantee or unreasonably interfere with the proper operation of said facilities.

(b) The surface of any public street, alley or public right-of-way disturbed by Grantee in the construction or maintenance of its electrical power delivery system shall be restored within a reasonable time after the completion of the work to as good condition as before the commencement of the work. Should the City reasonably determine, within one year from the date of such restoration, that such surface requires additional restoration work to place it in as good condition as before the commencement of the work: Grantee shall perform such additional restoration work to the reasonable satisfaction of the City. No public street, alley or public right-of-way shall be encumbered for a longer period that shall be reasonably necessary to execute all work.

Section III [Service, quality, additional regulations authorized.]

The service furnished hereunder to the City and its inhabitants shall be first-class in all respects considering all circumstances and shall be subject to such reasonable and non discriminatory rules and regulations as the Grantee shall make from time to time.

Section IV [Hold harmless agreement.]

The Grantee shall hold the City harmless of and from all expense or liability for any act or neglect of the Grantee hereunder.

Section V [Consideration.]

For and as full consideration and compensation for this franchise and the rights, privileges and easements granted and conferred thereby, and as rental for the use of the streets, alleys and other public areas within or that may hereafter be within the City, the Grantee shall pay the city $.002595 multiplied by the number kilowatt hours of delivered retail energy by the Grantee within and for use within the corporate limits of the City in semi-annual payments, being payments on or before each May 15th, computed on said delivered retail energy during the period of six (6) months ending on the preceding March 31^st and on or before November 15_th , computed on said delivered retail energy during the period of six (6) months ending on the preceding October 31. If Grantee should agree to pay The City of Mission which it serves a greater charge per kilowatt hour of its said delivered retail energy, Grantee will automatically thereafter pay to the City an equal charge per kilowatt hour of its said delivered retail energy.

Section VI [Non exclusive franchise.]

This franchise is not exclusive and nothing contained herein shall be construed to prevent the City from granting other like or similar rights and privileges to any other person, firm or corporation.

Section VII [Acceptance.]

This grant is conditioned that the Grantee shall file its written acceptance of this franchise within the 90 days after the adoption of this ordinance.

Section VIII [Future rules and regulations.]

The Grantee by the acceptance of this franchise hereby acknowledges and agrees that City may promulgate reasonable and non discriminatory rules and regulations relating to any or all aspects of the franchise including but not limited to additional financial or technical requirements, obligation to collect fees from third parties, the basis for collection of fees, reporting requirements and construction obligations and grantee hereby agrees to abide by all such rules and regulations so promulgated and upon the failure to comply City may suspend or revoke this franchise.

CONSIDERED, PASSED AND APPROVED this 22nd day of November, 2010 at a regular meeting of the Board of Commissioners of the City of McAllen, Texas at which a quorum was present and which was held in accordance with V.T.C.A. Government Code § 551.001 et seq. by the following vote, to wit: