Adopted February 4, 1952
Expires January 1, 2001
AN ORDINANCE GRANTING TO RIO GRANDE VALLEY GAS COMPANY THE RIGHT, PRIVILEGE AND FRANCHISE TO DISTRIBUTE NATURAL GAS IN THE CITY OF McALLEN, HIDALGO COUNTY, TEXAS; REGULATING SAID DISTRIBUTION; PROVIDING FOR THE RATES TO BE CHARGED TO CONSUMERS OF NATURAL GAS; PROVIDING OTHER REGULATIONS FOR THE CONDUCT OF SAID SYSTEM BY THE GRANTEE; AND REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY OF McALLEN:
[1]
Editor's note—Ord. No. 1997-54, §§ I—XX, adopted July 16, 1997, granted Southern Union Gas Company the right, privilege and franchise to use streets, alleys and thoroughfares to distribute natural gas in the city; regulating said distribution; providing for the rates to be charged to consumers of natural gas; providing other regulations for the conduct of said system by Southern Union Gas Company. Subsequently, Ord. No. 1997-79, adopted Sept. 9, 1997, repealed Ord. No. 1997-54 in its entirety, however Ord. Nos. 1971-15 and 1975-35 which amended the original gas franchise ordinance from Feb. 4, 1952 shall remain in full force and effect; therefore, §§ 8—10, 13, 18, 24 remain in effect.
In granting this franchise neither the grantee, nor the city shall in any manner waive its regulatory or other rights and powers under and by virtue of the laws of the State of Texas as the same may be amended, nor any of its rights or powers under or by virtue of present or future ordinances of the City of McAllen, Texas, and it is expressly provided that nothing herein shall impair the right of the city of [or] the grantee, to fix, within constitutional and statutory limits, a reasonable price to be charged for natural gas, or to provide and fix a scale of prices for natural gas to be charged by the grantee to residential consumers, large residential consumers, domestic consumers, commercial consumers, industrial consumers or to any combination of such consumers within the territorial limits of said city as same now exist or as such limit may be extended from time to time hereafter.
(Ordinance 1975-35, § 1, adopted 7/21/1975; Ordinance 1997-79, § I, adopted 9/9/1997)
(a) 
The grantee shall not charge or receive any higher rate for natural gas furnished by it for any domestic residential consumer, large residential consumer, domestic consumer, commercial consumer, industrial consumer or any combination thereof within the city limits, as same now exist or as such limit may be extended from time to time hereafter, than the rate fixed by the Railroad Commission of Texas, Gas Utilities Division, by order heretofore made or any orders hereafter made.
(b) 
Grantee shall be entitled to require from each and every consumer of gas, before gas service is commenced, a deposit of twice the amount of an estimated average monthly bill, which said deposit may be retained by grantee until service is discontinued and all bills therefor have been paid. Grantee shall then return said deposit to the consumer, together with four per cent interest thereon from the date of said deposit up to the date of discontinuance of service. Grantee shall be entitled to apply said deposit, with accrued interest, to any indebtedness owed grantee by the consumer making the deposit.
(Ordinance 1975-35, § 1, adopted 7/21/1975; Ordinance 1997-79, § I, adopted 9/9/1997)
Any class of consumer.
(Ordinance 1975-35, § 1, adopted 7/21/1975; Ordinance 1997-79, § I, adopted 9/9/1997)
This ordinance shall continue and remain in force until January 1, 2001.
(Ordinance 1971-15, § 1, adopted 5/3/1971; Ordinance 1997-79, § I, adopted 9/9/1997)
The grantee, by accepting or acting under this grant, shall pay to the City of McAllen, as a franchise tax and as compensation for the rights and privileges enjoyed hereunder, during the life of this grant, two per cent of its gross income derived from all sales of gas for consumption within the City of McAllen, Texas until March 6, 1977 or upon grantee charging and receiving a higher rate, subsequent to May 1, 1971, for natural gas furnished by it for any domestic consumer within the city limits, or a [as] such time as company pays four per cent gross receipts tax in any of the other 26 towns and cities served by the company in the Rio Grande Valley, whichever is the earliest; at which time grantee shall pay to the City of McAllen as a franchise tax and as compensation for the rights and privileges enjoyed hereunder during the remaining life of this grant four per cent of its gross income derived from all sales of gas for consumption within the City of McAllen, Texas. Such payment shall be based on receipts for each 12-month period ending December 31st and payment shall be made on or before February 1st of each and every year, beginning February 1, 1953. This tax shall be in lieu of all other franchise, license or occupation taxes, levies, rentals or charges which may be levied or attempted to be levied by the said City of McAllen, Texas. The city commission may, when it may see fit, have the books and records of grantee examined by a representative of the city to ascertain whether such statement and tax is accurate, but nothing in this ordinance shall be construed to prevent the city from ascertaining the facts by any other legal method. Nothing herein shall, or shall be construed to exempt the grantee from the payment of ad valorem taxes to said city upon its physical properties within said City of McAllen.
(Ordinance 1971-15, § 1, adopted 5/3/1971; Ordinance 1997-79, § I, adopted 9/9/1997)
Should the grantee apply for any change or increase in the rates being charged, such application concerning proposed rates shall include an agreement by the grantee to reimburse the city within 30 days for the city's expenses as follows:
(a) 
Reasonable fees and expenses for any independent study and evaluation by consultants, engineers, or others employed by the city in its discretion to study, report, and to testify concerning or evaluating the proposed rate before the city, any agency of the state, or in any court; and
(b) 
Pay the reasonable fees and expenses of an attorney employed by the city in its discretion to represent the city and its interest and position concerning the proposed rate before the city, any state agency, or in any litigation concerning the proposed rate.
Mayor
ATTEST:
Secretary
Rio Grande Valley Gas Company
Brownsville, Texas
February 18, 1952
Hon. Mayor and Members of the Board of Commissioners, City of McAllen
McAllen, Texas
Gentlemen:
In accordance with sections 22 and 23 of the ordinance passed and adopted by the board of commissioners of the City of McAllen on February 4, 1952, and recorded in Ordinance Book #6, which ordinance grants to Rio Grande Valley Gas Company the right, privilege and franchise to distribute natural gas in the City of McAllen, Hidalgo County, Texas, the Rio Grande Valley Gas Company hereby accepts said ordinance and files this, its consent to, and written acceptance of, the provisions and conditions of said ordinance.
Yours very truly,
RIO GRANDE VALLEY GAS COMPANY
By
L.O. Vogelsang, Vice President
ATTEST:
W.H. Meredith, Asst. Secretary
(Ordinance 1975-35, § 1, adopted 7/21/1975; Ordinance 1997-79, § I, adopted 9/9/1997)