OR 98-834 Grants CoServ Electric franchise to operate
ORDINANCE NO. 98834
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS GRANTING
DENTON COUNTY ELECTRIC COOPERATIVE, INC, DBA COSERV ELECTRIC
, A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING,
MAINTAINING, AND OPERATING ITS ELECTRIC POWER UTILITY
SYSTEM IN PUBLIC STREETS, ALLEYS, AND RIGHT OF WAYS IN THE
CITY; RESERVING THE CITY THE RIGHT TO REGULATE
GRANTEE; PROVIDING CONDITIONS GOVERNING THE
CONSTRUCTION, EXPANSION, USE, RECONSTRUCTION, REPAIR,
EXCAVATION, MAINTENACE, RELOCATION AND OPERATION OF
THE ELECTRIC POWER UTILITY SYSTEM; PROVIDING FOR
INDEMNIFICATION; PROVIDING FOR CITY USE AND JOINT USE OF
GRANTEE'S FACILITIES; PROVIDING FOR COMPENSATION;
PROVINDING FOR ACCOUNTING AND OTHER REPORTS; PROVIDING
FOR CONDITIONS OF ASSIGNMENT; PROVIDING FOR TERMINATION;
PROVIDING FOR ACCEPTANCE OF THE FRANCHISE; PROVIDING A
REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND
PRODIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS:
SECTION1: PURPOSE
a) ~t there is hereby ~t~ to Denton Coun~ El~fic Cooperative, ~c., ~/a CoS~
Elffie, her~ ~ ~t~, for a te~ of s~ (6) y~s ~c~g on the effe~ive
date oft~s ~c~ ord~, the nonexclusive pfi~ege to have, ~u~e, ~tmct, e~end,
r~n~a, m~t~ u~ ~d operate ~ ~on~ across, o~ over, t~ou~ ~ove ~d under
public sifts, ~s ~d fi~ts-of-way (h~e~er refe~ to ~ "Ci~ prope~') ~ the Ci~ of
Coppe~ Te~ (h~n~er ref~ to ~ Ci~) ~ d~fic power u~ sy~em ~clud~ but
not ~t~ to, ~les, ~es, ~es, poles, towns, ~chors, ~ide ~es, ~ators, tr~sfo~ers,
~b~tions, ~d ~y ~at~ ~uipment or pl~t, or other fa~ties desi~ ~d
for the pu~ of produc~g tr~R~g or distfibut~g el~fi~W (here~er refe~ed to
"ut~ sy~" or 'Tac~ties") to or from ~omers or lo~ons ~t~ the Ci~.
b) The Ci~ ~y delegate to the Ci~ M~ag~, or ~y other desi~at~ Ci~ o~ci~, ~d the Ci~
Enter or desi~at~ repre~n~tive wh~ sp~y ~tho~ by t~s ord~ce to
Page 1
exercise any and all powers, including required approvals, conferred upon the City by the
Charter, City ordinances or by general law relating to the administration and supervision of this
Ordinance.
c) Grantee shall not provide cable television services or operate a cable television system as
defined in the Cable Communications Policy Act of 1984 (47 U.S.C.A. § 521 et seq., as
mended) or as recognized by the Federal Communications Commission (the "FCC") without
first obtaining a separate t~anchise ~-om the City. Grantee shall not provide telecommunication
services or operate a telecommunication system, as defined in the Public Utility Regulatory
Act, Subtitle C, TEX.UTIL. CODE, as alnended, or any successor statute or law without first
obtaining a separate franchise or consent from the City; provided however Grantee may use
such technology in providing electric utility services to its customers. This franchise is granted
solely for the purpose of Grantee directly serving its end-user customers and for the
termination of dectric utility services. Grantee is not authorized to license or lease to any
persun or entity the right to occupy and use any of the City's streets, alleys or rights-of-way for
any private business or other purpose.
d) In the event the City grants franchise conditions to another electric franchisee that are more
favorable than the terms of this franchise are to Grantee, the City shall approve amendments to
this franchise that provide Grantee with the same or similar terms to be effective on the
effective date granted to such other electric l?anchise.
SECTION 2: Construction and Maintenance.
Work done in connection with the construction, maintenance, expansion, reconstruction, operation and
use of the utility system and facilities shall be subject to the following conditions:
a) General.
Except as otherwise provided in this ordinance all construction, reconstruction, expansion
relocation, repairs, excavation, borings or other work performed by Grantee, and all facilities of
the Grantee which are designed and installed within City property shall be in accordance with
all lawful, reasonable and proper applicable City codes and ordinances, including but not
limited to, City standard construction details, tree preservation regulations, the Comprehensive
Zoning Ordinance and the Subdivision Ordinance, now in effect or as may be hereafter adopted
or amended. All underground erossings of public streets, alleys and rights-of-way shall be
accomplished by dry boring unless otherwise approved in writing by the City Engineer or
designated representative. Grantee shall maintain and/or repair such improvements to the
infrastructure for a period of two years from the completion and final acceptance of the
improvements by the City, to guarantee Grantee's performance of its obligations and faithful
adherence to City construction requirements. Grantee shall maintain and/or replace all
landscaping material disturbed, damaged, or destroyed by reason of construction for a period
of one year, from the completion and final acceptance of the affected improvements by the
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City, to guarantee Grantee's performance of its obligations and faithful adherence to the
restoration of landscaping disturbed, damaged, or destroyed by such construction.
b) Permit and Approval.
In addition to any other City ord'mances, regulations or requirements, Grantee shall submit to
the City Engineer (or officials as the City Manager may designate fi-om time to time) detailed
construction plans of all facilities to be installed, bored, excavated, reconstructed, repaired, or
expanded in, on, above, across, or under City property prior to seeking a permit from the City
and prior to the commencement of such construction or other work. The City Engineer shall
review said plans and may require reasonable modifications in order to protect existing or
anticipated public improvements or other ut'dities. Grantee shall then cause the appropriate
modifications. Grantee shall not proceed with any construction, repair, boring excavation or
reconstruction until the plans and drawings have been approved by the proper City officials.
The Grantee shall obtain a permit from the City prior to commencement of any construction
except Grantee shall not be required to obtain a permit prior to responding to emergency
situations, but shall not'fly the City within forty-eight (48) hours following the initiation of work
on or in City property in response to any emergency situation. Any request for construction,
reconstruction, repair, or expansion may be denied by the City when, in the reasonable opinion
of the City Engineer, the installation of the proposed fac'fiity or such construction will
unreasonably interfere with existing or current use of the City property by other utilities or by
the City, or if the City properly will not accommodate the facilities. The determination of the
City Engineer may be appealed to the City Manager whose decision shall be final.
c) Street Closure.
In the event the construction, reconstruction, repair, relocation, or maintenance of Grantee's
facilities requires the temporary dosing of a traffic lane or lanes, the Grantee shall notify the
City Engineer not less than three (3) days prior to the construction. The City Engineer may
require the submittal of a traffic control plan and may also require all lanes to be open and
available to the traffic during peak hours, This provision shall not apply to emergency repairs.
d) Traffic Control.
The Grantee shall conduct all traffic control in accordance with the latest version of the Texas
Manual On Uniform Traffic Control Devices, as amended.
e) Restoration.
The City and Grantee shall use ail reasonable caution to avoid disturbing the facilities of the
other party. The surface of any public street, alley, highway, sidewalk, right-of-way, parkway,
or landscaped area disturbed by the Grantee in the construction, relocation or maintenance of
any of its facilities shall be restored by Grantee within shay (60) days after completion of the
work (except in the case of landscaping which shall be restored by Grantee within ninety (90)
Page 3 15643
days) to a condition equal to or better than the condition before commencement of the work.
The Grantee shall be responsible for maintaining all landscaping for one ( 1 ) year fxom the date
of completion of the restoration of the surface and all appurtenant structures of the City
property that are broken, excavated or bored for construction or maintenance work. Such
surface and appurtenant structures shall be maintained to the reasonable satisfaction of the City
Engineer for two (2) years tiom the date of completion of the restoration of the surface and all
appurtenant structures of said street or City Property that is broken, excavated or bored for
construction or maintenance work. No street or other property shall be encumbered by
construction, maintenance or other repair work by Grantee for a longer period than shall be
reasonably necessary to execute such work.
f) Abatement and Removal of Dangerous Facilities.
Upon request of the City, Grantee shall remove and abate any portion of the utility system or
any of its facilities that is unreasonably dangerous to life or property.
g) Location of Facilities.
Grantee shall provide, or cause to be provided, a locating service to all persons anticipating
construction in, or along the route of Grantee's utility system or facilities. Grantee shall provide
to the City Engineer a telephone number of persons responsible for providing an accurate
location of Grantee's facilities within the City. Upon receiving a request, said facilities shall be
located and marked within forty-eight (48) hours. Grantee shall provide City upon request
complete information regarding the location of all facilities along with maps, plats, computer
aided drawings (CAD), construction documents and drawings as may exist or may be created
from time to time.
h) Excavation.
All borings or excavations and other constructions in the public streets, alleys and rights-of-
way shall be carded on to interfere as little as practicable with the use of public and private
property and in accordance with any spedtic direction given by the City Engineer. Except in
emergency, Grantee shall not bore or excavate any pavement in any public alley, or street, or
any public right-of-way without first obtaining a pennit and approval from the City Engineer.
The City Engineer shall be notified as soon as practicable regarding work performed under
emergency conditions.
i) Segment Construction Reports.
Within thirty (30) days of completion of each segment of Grantee's utility system, Grantee shall
upon written request, supply the City with a complete set of as-built drawings or CAD ties for
that segment. After each replacement, relocation, reconstruction or removal, Grantee shall
promptly upon written request notify the City of the exact changes made and shall upon written
Page 4 15643
request provide to the City Engineer a new set of as-built drawings or CAD files for each
modification.
SECTION 3: Occupancy Conditions.
All facilities constructed, relocated or maintained by Grantee within City property shall be located so as
to not unreasonably interfere with the use of such property by the City or other utilities; and shall not
unreasonably interfere with the rights of the owners or occupiers of any adjoining property. Grantee
shall not place any of its facilities where the same will unreasonably interfere with any gas, electric or
telephone fixture, water hydrant, or main, drainage facility or sanitary sewer, or interfere with travel on
or public use of streets, alleys or other City property. The location and route of Grantee's facilities
placed and constructed by the Grantee in the construction and maintenance of the utility system in the
public streets, alleys and rights-of-way shall be subject to lawful, reasonable and proper control and
direction of the City. Grantee shall submit to the City Engineer, for approval, detailed plans which
show the existing and proposed location and route of all the Grantee's facilities in the City.
SECTION 4: Relocation.
Whenever by reason of the changes in the grade of City property, or in the location or the manner of
construction, repair, maintenance, relocation, widening raising or lowering of any public street, alley,
right-of-way, water line or pipe, gas line or pipe, sewer, or any other underground or overhead facility
or structure for any reasonable and lawful purpose deemed necessary by the City, the Grantee shall at
its own cost and expense, move, relocate, change, alter or modify any of its facilities including
underground or overhead facilities located in any public street, alley, right-of-way or other property
owned or occupied by the City; such relocation shall be promptly made by Grantee when ordered in
writing by the City, without claim for reimbursement or damages against the City, provided however
Grantee is permitted to relocate such facilities in, on, along or above existing City property.
If the City shall require the Grantee to adapt or conform its facilities, or in any way or manner to alter,
relocate, or change its property to enable any other person or corporation, except the City, to use, or to
use with greater convenience, such street, alley, highway, or public place, the Grantee shall not be
bound to make such changes until such other person or corporation shall reimburse or make
satisfactory arrangements for reimbursement to the Grantee for any loss and expense caused by or
arising out of such change; provided, however that the City shall never be liable for such
reimbursement.
SECTION 5: City Use of Facilities.
Grantee shall pursuant to a joint use agreement, permit the City to use without charge space on any of
its poles below the neutral according the National Electrical Safety Code or its successor for public use
including but not limited to police, fire alarm, traffic control and communications. If Grantee
constructs or installs additional poles the City may require the Grantee to provide space on such poles,
if reasonably available~ without charge. Such additional City use shall also be subject to a joint use
agreement. The City shall not sell, lease, or otherwise make available its fights to use Grantee's
Page 5 15643
facilities to any third party for commercial purposes. Such rights are provided solely for the non-
commercial governmental use by the City. This restriction however shall not prohibit the City from
using the services of a third party to manage and operate the City's facilities.
SECTION 6: Underground Installation.
Grantee shall without cost to the City place, install and maintain its fac'dities, including substitutions and
replacements underground. Grantee shall without cost to the City remove Grantee' s exist'rag above
ground facilities located in the City identified as Segments A. B and C on the maps attached hereto as
exhibits "A" and "B" and incorporated herein by referenced, and shall: (1) immediately place the
fac'~ities identified as Segment "A" underground concurrent with the development of the Coppell
Greens Subdivision and complete such underground installation not later than two (2) years inter the
adoption of this Ordinance; (2) place the facilities identified as Segment '~" underground within
eighteen (18) months after the adoption of this Ordinance subject to events of'Torce Majeure' but not
later than two (2) years al~er the adoption of this Ordinance; and (3) place the facilities identified as
segment "C" underground not later than five (5)years after the adoption of this Ordinance.
SECTION 7: Joint Use of Facilities.
a) Grantee may elect or may be requ'wed by the City to attach its wires or other fac'dities to poles
or to share easements, licenses, trench space or other facilities owned and maintained by
another persun or entity, or to permit the wires or equipment of any other person or entity
~-anchised by the City to be attached to the facliities owned and maintained by Grantee, upon
reasonable, non-discriminatory terms pursuant to a joint use agreement and at fair market
value. In the event that the Grantee and such a person or entity ffanchised by the City shall be
unable to agree on such terms and just compensation, or if the same are not otherwise resolved
or determined within a reasonable time the affected part'~es shall submit the dispute to
mediation as described in Section 154.023 of the Texas Civil Praetice and Remed'~es Code or a
moderated settlement conference as described in Section 154,025 of the Texas Civil Practices
and Remedies Code. Grantee may require any such person or entity to furnish evidence of
adequate insurance or indemnification coveting the Grantee and its facilities.
b) W'wes shall be located on poles in compliance with applicable safety standards and shall not
interfere with the erection, replacement, operation, repair or maintenance of the wires and the
appurtenances of other persons or corporations occupying the poles. If the attachment of
Grantee's wires to the poles of another person or corporation, or if to attach the wires of
another person or corporation to Grantee's poles will cause increased risk of interruption of
service or liability for accidents, or if the poles, wires and appurtenances of such other person
or corporation are not of the character, design or construction required by or not being
maintained in accordance with modern praYice, or if sufficient clearance or space is not
available on the pole or other facility, Grantee shall not be required to attach its wires to the
poles of such other person or corporation or allow attachment to Grantee's poles if atter
reasonable effort such condition or defect cannot be reasonably corrected.
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c) Grantee may be required by the City to share trench space for cables or ducts with another
person or corporation for the placement of cables or wires underground. Ducts, cables or wires
shall be placed in trenches in compliance with applicable safety standards in a manner that does
not interfere with the Grantee's cables or wires as provided herein. Compensation to the
Grantee as well as terms for sharing such trench space shall be resolved as provided in (a)
above.
d) Nothing herein shall modify or abrogate the power of the City to require any holder of a
franchise ~-om the City to allow use of City facilities by any other holder of a City franchise.
e) The provisions of this Section for joint use of facilities required by the City shall not apply
unless the other affected utility ffanchisees of the City have, by their franchise, agreed to the
same or substantially the same terms of this Section.
SECTION 8: Work by Others.
a) The City reserves the right to lay and permit to be laid, sewer, gas, water, and other pipe lines
or cables and conduits, and to do and permit to be done, any underground or overhead work
that may be necessary or proper in, across, along over, or under a street, alley, highway or City
properly occupied by Grantee. The City also reserves the right to change in any manner any
curb, sidewalk, highway, alley, public way or street or the grade thereof. In permitting such
work to be done, the City shall not be liable to the Grantee for any damages so caused by the
City, except to the extent arising out of the negligence of the City, its agents or employees,
however, nothing herein shall relieve any other person or entity from liability for damage to
Grantee's facilities. Except as otherwise provided in this subsection, the City shall not be liable
for any damage direct or consequential damage to Grantee or its customers that may arise from
any interruption of service; and Grantee shall hold the City harmless and indemnify the City for
said damages.
b) The City reserves the right to authorize someone other than the Grantee to occupy City
property. In the event that the City authorizes someone other than the Grantee to occupy any
public street, alley, right-of-way, or other City property, such grant shall not unreasonably
interfere with the non-exclusive rights herein granted to Grantee. In the event the City shall
dose or abandon any street, alley, or fight-of-way, which contains existing facilities of the
Grantee, any conveyance of land containing such closed or abandoned street, alley, highway or
City property shall be subject to the non-exclusive rights herein granted; provided however,
Grantee may be ordered to relocate from City property so conveyed if an altemate location is
provided.
SECTION 9: Temporary Raising or Lowering of Wires.
Upon request of any person holding a permit from the City, Grantee shall raise or lower its wires and
cables or other facilities temporarily to permit the moving of houses, buildings or other structures. The
reasonable expense of such temporary raising or lowering shall be paid by the bene~ted person, and the
Page 7 15643
Grantee may require such payment in advance. Grantee shall be given not less than seventy-two (72)
hours advance written notice for such temporaxy adjustment.
SECTION 10: Trimming of Trees and Shrubbery.
The Grantee shall have the authority to trim trees or other natural growth overhanging any of its utility
system or facilities so as to prevent branches from coming in contact with the Grantee's wires, cables,
or other equipment. Grantee shall norkey the City for direction and consent prior to trimming trees or
other natural growth on C~ty property. The Grantee shall reasonably compensate the City or property
owner for any damages caused by the negligence of Grantee, its agems or contractors, in performing
such trimming or shall replace all trees or shrubs damaged as a restfit of such negligence.
SECTION 11: Reports and Records.
a) Grantee shall keep complete and accurate books of account and records of its bus'mess and
operations from which gross receipts may be determined. Copies of relevant portions of such
books of accounts and records shall be available to the City upon reasonable request. The City,
shall have access to all books of accounts and records relafmg to the gross receipts of Grantee
relating to this franchise as reasonably needed to determine the accuracy of any and all reports
related to the gross receipts. The City agrees to the extent allowed by law that any confidential
or proprietary matters shall not be disclosed by the City, except as needed to enforce the Clty's
rights under this ordinance.
b) The City shah have the right, at reasonable times, to inspect the plant, equipment, and other
property of the Grantee, and to examine, audit and obtain copies of the papers, books,
ax;counts, documents, and other business records relating to the gross receipts of the Grantee
consistent with State law.
c) Grantee shall notify the City of filings relating to tariffs, rates, rate changes, merger,
consofidation, cert'~ication of service area, and deregulation, with the Public Ufdity
Commission, or its successor, and any other State or Federal regulatory agency or body; and
shah upon reasonable demand permit the City to inspect and copy the same.
SECTION 1:2: Quality of Service.
a) Grantee shall at all times furnish service which is modern and sufficient to meet reasonable
demands without undue interruption or fluctuations, to any person, firm, or corporation that
shah demand service within the City. Grantee shah make sendee connections on reasonable
demand, without undue delay. Grantee covenants that it will furnish such service,
instrumentalities, and facilities as are safe, adequate, efficient, and reasonable. Notwithstanding
anything herein to the contrary, this section is not intended to create or grant any rights,
contractual or otherwise, to any person, firm or corporation demanding service within the City,
but that the City to the extent allowed by law shall have the right of enforcement of this
section.
Page 8 15643
b) Grantee shall comply with all Public Utility Commission Regulations and Rules (or its
successor) for electric public utility systems relating to customer service standards and any
Service Rules and Regulations as now in effect or hereinafier adopted or amended.
c) Grantee shall maintain a listed local or toli-~-ee telephone number and employ a sufficient
number of telephone lines, personnel and answering equipment or service to allow reasonable
access by customers and members of the public to contact the Grantee on a full-time basis,
twenty-four (24) hours a day, seven (7) days a week including holidays.
d) Grantee shall develop written procedures for the investigation and resolution of all customer
complaints. Upon complaint to the Grantee by a customer at its office, either by letter or by
telephone, the Grantee shall promptly make a suitable investigation and advise the complainant
of the remits thereof A customer who has not been satisfied by foliowing the Grantee's
procedures may file a written complaint with the City Manager, who will investigate the matter
and, in consultation with the Grantee as appropriate, attempt to resolve the matter. Grantee
agrees to cooperate and assist the City Manager with any such investigation. Grantee agrees to
use its best efforts to resolve any complaints. In the event that the Grantee, the City and the
complainant shall be unable to resolve the matter within a reasonable time, the affected parties
shall submit the dispute to mediation as described in Section 154.023 of the Texas Civil
Practice and Remedies Code or a moderated seulement conference as described in Section
154.025 of the Texas Civil Practice and Remedies Code.
e) Grantee shall provide City with at least thirty (30) days advance written notice of any changes
in rates, charges or certi~cated service area and deregulation, where such changes apply to any
area covered by this tianchise.
f) Grantee shall maintain a record of all unresolved complaints, showing the name and address of
the complainant, the date and nature of the complaint. These records shall be available for
inspection by the City during normal business hours upon reasonable prior notice. Such
records shall be retained for at least two (2) years.
SECTION 13: Service Rates.
a) The City acknowledges that under Section 36.251 of the Public Utility Regulatory Act, as
amended, that Grantee may by majority vote of its members elect to be exempt from the rate
regulation by the Public Utility Commission. The City further acknowledges that in the event
the Public Utility Commission administratively eertitles or has certified the Grantee is
deregulated for rate making purposes, the City may not fix and regulate the rates of the
Grantee.
(b) To the extent permitted by applicable law, the City hereby expressly reserves the right, power
and authority to fully regulate and fix the rates and charges for the services of the Grantee to its
customers, fully reserving to the City Council all the fights, powers, privileges and immunities,
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subject to the duties and responsibilities which the constitution, the laws of the State, the
charter and this franchise coffer upon the City.
c) In the event the City is permitted by applicable law to regulate Grantee and Grantee desires to
propose changes in its general rates it may do so by filing an application with the City Secretary
for consideration of the City Counc'd. Within a reasonable lane consistent with law, the C~ty
Council shall afford Grantee a fair hearing with reference to the application and shall either
approve or disapprove the proposed changes or make such order as may be reasonable.
d) In order to ascertain any and all facts, related to rates and charges, the City Council shall have
full power and authority to inspect, or cause to be inspected, the books of Grantee, and for
good cause to inventory and appraise, or cause to be inventoried and appraised, the property of
Grantee, and to compel the attendance of wimesses and the production of books and records,
and to prescribe penalties for the failure or refusal of Grantee to testify or produce books and
records as required.
e) To the extem permitted by applicable law the City shall not allow as to rates or services an
unreasonable preference or advantage to anyone within a service classification, nor allow
Grantee to subject anyone within a service classification to any unreasonable prejudice or
discrimination. Disfractions in rates and services between locations and service classifications
shall be reasonable and shall be approved by the City.
f) Nothing herein shall be deemed a waiver, release or relinquishment of the City's right to
regulate the rates and services of Grantee, the Grantee' s rights under applicable law or either
partys right to comest or appeal any action or decision of the other party to the Public Ufdity
Commission or its successor.
SECTION 14: Compensation.
a) For the reason that the use of City property by Grantee in operation of its utility system and
fac'fiities is a valuable property right without which Grantee would be required to invest
substantial capital in right-of-way costs and acquisition, the Grantee shall, as compensation for
the rights and privileges herein conferred, pay to the City during the term of franchise a sum of
money equal to four percent (4%) of the annual gross receipts received by Grantee from the
sale of all dectrio energy within the City including the sale of electric power energy to other
electric utilities for resale. The first payment hereunder shall be equal to four percent (4%) of
the gross receipts, as defined above, from the date of acceptance of this ordinance through the
last day of the first full calendar quarter following acceptance of this ordinance, and shall be
made within thirty-one (31) days following the last day of the quarter period for which the
paymere is calculated; and thereafter payment shall be made quarterly within thirty-one (3 1)
days after the exp'tration of the most recently ended calendar quarter. Each quarters payment
shall be equal to four percent (4%) of that quarter's actual gross receipts. For example, the
quarterly payment due on or before October 3 1st shall be equal to four percent (4%) of the
actual gross receipts of Grantee l~om the sale of electric energy as described above during the
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months of July, August and September. The Grantee shall file with the City Manager within
thirty-one (31) days after the expiration of each quarter of each calendar year or portion thereof
during which the fi'anchise is in effect, a detailed statement showing the gross receipts collected
during the preceding quarter of the calendar year. Such statemere shall be accompanied by the
Grantee's four percent (4%) payment of the annual gross receipts for such quarter.
b) At the end of each fiscal year of Grantee, there shall be a reconciliation of the difference in the
quarterly payments for the preceding calendar year and the four percent (4%) compensation.
Grantee shall pay the difference to the City within thirty (30) days aRer the end of Grantee's
fiscal year.
c) The compensation provided herein shall be in lieu of any other license, charge, fee, street or
alley rental or other charmer of charge for use and occupancy in the streets, alleys and public
places which the City may impose or may herealter be authorized to impose and collect,
excepfmg ad valorera, sales and use taxes, and special taxes and assessmems for public
improvements.
d) As additional compensation for the use, if any, of City property prior to the acceptance of this
ordinance, Grantee agrees to pay a sum of money equal to two percent (2%) of the gross
receipts as defined in (a) above, received by Grantee tiom January 1, 1990 through the date of
Grantce's acceptance of this ordinance; and shall be paid within thirty-one (31) days following
the date of acceptance.
SECTION 15: Assignment
a) The rights granted by the Ordinance inure to the benefit of Grantee, and any parere, subsidiary,
affiliate or successor entity now or herealter existing. The fights shall not be assignable
without the express written consent of the City Counc'~ except Grantee may assign its rights
under this Ordinance to a parent, subsidiary, affiliate or successor entity, without such consent
so long as (i) such parent, subsidiary, affiliate or successor assumes all obligations of Grantee,
and (ii) is bound to the same extent as Grantee. However, in all instances no such assignment
shall be valid unless a copy of the assignment is delivered to the city within twenty (20) days of
the assignment. Any required consent is to be evidenced by an ordinance or resolution of the
City Council of the City that fully recites the terms and conditions, if any, upon which consent
is given.
b) The terms and conditions comained in this ordinance shall be b'mding upon Grantee, its
successors and assigns.
SECTION 16: Governing Law.
This ~anchise is subject to all applicable State laws, the provisions of the City Charter and the
ordinances of the City now in effect or as may hereafter be adopted or amended. This ~'anchise
Page 11 ~5643
agreement shall in no way affect or impair the present or future rights, obligations or remedies of the
City or Grantee under the Public Utility Regulatory Act of Texas, as mended, or its successors.
SECTION 17: Indemnification.
a) The Grantee shall pay, and by its acceptance of this franchise specifically agrees that it will pay,
the following:
1 ) Damages. All damages which the City, its officers, agents or employees, may legally
be required to pay as a result of damages aris'mg out of the installation, maintenance, or
operation by the Grantee of its facilities within the public rights-of-way of the City,
whether or not any act or omission complained of is authorized, allowed, or prohibited
by this franchise; and
2) Expenses. All expenses incurred by the City in defending itself, its offricers, agents or
employees, against any and all claims for damages described in Section 17(a)(1) above
provided the City gives the Grantee prompt notice of any such claim and the
opportunity to defend such claim. These expenses shall include all out-of-pocket
expenses, such as, but not limited to, attorney fees, expert wimess fees and court costs
and shall also include the reasonable value of any services rendered by any officers or
employees of the City.
It is the intent of this section and by its acceptance of this franchise the Grantee spec'tfically
agrees that the Grantee shall indemnify and hold the City, its officers, agents and employees,
harmless from all liability, damage, cost or expense aris'mg from claims for injury to persons,
damage to property or penalties to the extent caused by any conduct of Grantee undertaken by
reason of this franchise. The City shall not and does not by reason of the granfmg of this
franchise assume any liability of the Grantee whatsoever for injury to persons, damage to
property or penalties.
This provision is not intended to create a cause of action or liability for the benefit of third
parties, but is solely for the benefit of the Grantee and the City.
The Grantee shall, at all times during the existence of this fi'anchise, cany insurance as follows:
1) Workers' Compensation Insurance in accordance with the laws of the State of Texas.
2) Public Liability Insurance, with a minimum combined single limit of One Million
Dollars ($1,000,000.00) per accident.
SECTION 18: Annexation; Disannexation.
This franchise shall extend to and include any and all territory that is within the City's corporate limits
that have been certified to the Grantee by the Public Utility Commission of Texas. The franchise shall
Page 12 15643
also extend to any territory which is annexed by the City during the term of this franchise and certified
to the Grantee by the Public Utility Commission of Texas. In the event ofdisannexation, this franchise
shall be reduced to the territory that continues to be in the City. The City shall promptly fumish the
Grantee with maps or other documents showing the affected area in the event of an annexation or
disannexation. Within thirty (30) days from the date such maps or other documents are fumished,
Grantee shall identify all customers located within such annexed or disannexed territory and adjust its
accounting system and records accordingly. The compensation under this franchise agreement shall
include annexed areas within thirty (30) days from the date the City fumishes the maps or other
documents to the Grantee.
SECTION 19: Termination.
In addition to all rights and powers of the City by virtue of this franchise or otherwise, the City may
tenninate this franchise if,, at~er notice and hearing Grantee is found to be in violation any term,
condition or provision of this franchise and fails or refuses to effect compliance within thirty (30) days
following written demand for compliance by the City following such heating.
SECTION 20: Repealing Clause.
That all ordinances of the City of Coppell, Texas, in conflict with the provisions of this ordinance be,
and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this
ordinance shall remain in full force and effect.
SECTION 21: Severability.
If any word, phrase, paragraph, section or portion of this ordinance is held to be illegal, invalid or
unenforceable, the legality, validity and enforceability of the remaining portions of the ordinance shall
not be affected thereby, and in lieu of each such illegal, invalid or unenforceable word, phrase,
paragraph, section or portion, Grantee shall negotiate in good faith with the City to add to the
ordinance a legal, valid and enforceable word, phrase, paragraph, section or portion as similar as
possible to the portion declared illegal or unenforceable.
SECTION 22: Acceptance; Effective Date.
Grantee shall within thirty (30) days after passage of this ordinance file with the City Manager a written
instrument ar~cepting this franchise ordinance and all terms and conditions thereof, signed and
acknowledged by its proper office~ in the following form:
To the City Council of the City of Coppell:
Grantee, acting by its duly authorized official hereunto accepts this
Ordinance No. ~28'3~.i7 , hereby authorizing a franchise
agreement with Grantee.
Page 13 ~s643
Executed this ~-dl/day of C~ ,199
Upon filing of the acceptance, this ordinance shall become effective thirty (30) days aRer its passage.
In the event that such acceptance is not fled within thirty (30) days after passage of this ordinance, this
ordinance shall terminate and become null and void.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
COPPELL, TEXAS, ONTHE LJZ',:?DAYOF ,, ) , ~, ,_/~ ,1998.
-:
KATHLEEN ROACI~ CITY SECRETARY
APPROVED AS TO FORIVI:
PETER G. S~ORNEY
(PGS/pr 5/15/98)
Page 14 ~5643
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