TX-NM-CS0500518Texas -New Mexico 1479 FM 407
Power Company Lewisville, TX 75077
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, GRANTING AN
ELECTRIC FRANCHISE TO TEXAS NEW MEXICO POWER
COMPANY, A TEXAS CORPORATION, ITS SUCCESSORS AND
ASSIGNS THE NONEXCLUSIVE RIGHT, PRIVILEGE AND
FRANCHISE FOR A TERM NOT EXCEEDING TWENTY -FIVE (25)
YEARS TO ERECT, MAINTAIN AND OPERATE AN ELECTRIC
POWER UTILITY SYSTEM IN THE CITY OF COPPELL, TEXAS; TO
ERECT, MAINTAIN AND OPERATE ITS FACILITIES IN, OVER,
UNDER, ALONG AND ACROSS THE PRESENT AND FUTURE PUBLIC
STREETS, HIGHWAYS, ALLEYS, AND OTHER PUBLIC WAYS AND
PLACES IN THE CITY; PRESCRIBING COMPENSATION FOR THE
RIGHTS, PRIVILIEGES, AND FRANCHISE CONFERRED
HEREUNDER; PROVIDING FOR ENFORCEMENT OF THE
FRANCHISE; ESTABLISHING SEVERABILITY; AND SETTING
FORTH OTHER PROVISIONS RELATED THERETO.
WHEREAS, Article 1175 of the Texas Revised Civil Statutes and Article 10, Section 10.01 of
the City of Coppell Home -Rule Charter provides that the City has the power to buy, own, sell,
construct, lease, maintain, operate and regulate public services and utilities; and
WHEREAS, TNMP shall provide electric power utility services within the City under such �F
franchise; and
WHEREAS, the City Council deems it appropriate and in the best interest of the City and its
inhabitants that the franchise with TNMP be approved;
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS:
Article I
Parties
The City of Coppell, herein called the City, a municipal corporation created under Title
28 of the Texas Revised Civil Statutes, does hereby grant to Texas New Mexico Power
Company, its successors and assigns, herein called Grantee, the nonexclusive right, privilege and
franchise herein contained.
Article II
Nature of Grant
The City acting pursuant to Title 28 of the Texas Revised Civil Statu s relative to cities
and towns, Articles 1436 and 1436a of said Statutes, does her y grant to Grantee the
nonexclusive right, privilege and franchise to erect, maintain, operate and remove electric lines
and pertinent facilities over, under, across, upon and along the streets, alleys and other public
property in the City or any future extension thereof, subject to the terms and conditions herein set
forth.
Article III
Purpose
This franchise is granted for the purpose of providing the City and its i tants with
satisfactory electric service.
Article IV
Term
This franchise shall exist for a term of twenty -five (25) years from date of passage, which\
date is hereinafter set forth. /
---- _._ Article -V
Location of Facilities
1. Location of Facilities. All poles placed or maintained under this grant shall be
reasonably straight. All poles, and other equipment placed or maintained by Grant der this
grant, shall at all times be of sound material and kept in a saf� condition. A.11-6"f such poles and
other equipment shall be so placed, constructed and maintaine as n o interfere with drainage
within the City or with any public activity maintained and operated by the City, and also so as
2
not to constitute any danger or hazard to members of the public using the streets, avenues and
alleys within the City. Nothing herein contained shall be construed as authorizing the violation
of, or interference with any right of ingress or egress to, or from any private property.
The location, route and position of all poles, conduits, stubs, guys, anchors and other
appurtenances placed or maintained under the provisions hereof shall be subject to reasonable
and proper regulation, control and direction of the City Council or of any City official to whom
such duties have been or may be delegated. It is expressly provided that no transmission or other
major line, including any poles, used in connection therewith shall be placed within the corporate
limits of the City unless the same shall have been expressly approved by the City Council or the
City official to whom such duties have been or may be delegated.
2. Excavations. The surface of all streets, avenues, and alleys cut, broken, excavated or
disturbed by Grantee in exercising any right or privilege hereunder shall be by Grantee, at its
own expense and as soon as practical, restored to as good a condition as previously existed prior
to the cutting, breaking, excavating or disturbance thereof to the satisfaction of the governing
body of the City of Coppell.
3. Relocation of Facilities. Grantee, whenever ordered to do so by the governing body of
the City of Coppell, shall expeditiously rearrange, relocate, alter or remove any pole, wire, cable,
conduit, anchor, or any other appurtenance placed or maintained by Grantee under this grant at
its own expense, when the changing, rearranging, relocation, altering or removal thereof may be
reasonable, necessary, or desirable in the prosecution or construction of any public work or
project or public improvement undertaken by the City of , alone or jointly.
4. Temporary Removal of Wires. Grantee, on the request of any person, shall remove or
raise or lower its wires temporarily to permit the moving of houses or other bulky structures.
'
The expense of such temporary removal, raising or lowering of wires shall be paid by the
benefited party or parties provided, however, that no charge shall be made when the house or
other bulky structure is not more than twenty -two feet above the surface of the street. Grantee
reserves the privilege of determining the route of removal of such structures to avoid raising the
larger cables and lines where possible, and shall be given not less than forty -eight (48) hours
advance notice to arrange for such temporary changes.
Article VI
Indemnity
Grantee shall indemnify and hold the City harmless from any liability, cost, damage and
expense of every character, arising out of or in any manner resulting from or contributed to by
any wrongful or negligent act or omission of Grantee, its agents, servants, or employees in the
erection, maintenance and operation of its facilities in the City or in the exercise of any right or
privilege hereunder, and Grantee shall further indemnify, defend and hold the City harmless
from all claims, causes of action and demands arising out of a failure to provide any person, firm
or corporation with electric service.
Article VII
Street Rent
As compensation for the right, privilege, and franchise herein conferred, Grantee shall pay to the
City for each calendar quarter, or portion thereof, during the term of this franchise, a fee for the
use of the public streets based on all kilowatt hours (kWh) delivered within the city limits
regardless of customer class. With no other historical consumption data and for the purpose of
this agreement, the charge per delivered kWh shall be determined by matching the Grantor's
projected annual peak load with five equivalent loaded TNMP 2% franchise factor agreements
4
within the North Texas Area. These five factors will then be averaged (Addendum -A). Grantee
calculates that charge to be $0.0017712 per kWh. [The factor is an amount based on all kilowatt
hours (kWh) delivered within the city limits regardless of customer class, pursuant to the Public
Utility Regulatory Act § 33.008(b). The charge per delivered kWh shall be determined by (i)
dividing the total electric franchise fee revenue for calendar year 1998 by the total number of
kWh delivered to all customers within the city limits in 1998 and (ii) multiplying the charge per
kilowatt hour determined for 1998 by the number of kilowatt hours delivered within the City
during each calendar quarter.]
The charge herein made shall be in lieu of, to the extent permitted by law, any other
charges or fees of any kind of the City based on, connected with, or incident to the exercise of
the nonexclusive right, privilege and franchise herein granted, but shall not in anywise impair or
diminish Grantee's obligation to pay city ad valorem taxes or in anywise interfere with the
collection thereof.
Article VIII
Reservation of Police Power
The City of Coppell does not part with, but expressly reserves the right and duty at all
times to exercise in the interest of the public, full superintendence, regulation and control in
respect of all matters connected with the police powers of the City of Coppell, now or hereafter
vested in it or its governing body.
Article IX
Assignment
61
Notwithstanding anything herein contained to the contrary, Grantee shall not assign the
franchise herein granted and contained to any person, firm or corporation without first obtaining
the consent of the City Council to such assignment or transfer.
Article X
Force Majeure
The Grantee will make reasonable provision to insure satisfactory and continuous service,
but does not guarantee a continuous supply of electrical energy, and shall not be liable for
damages or for failure to perform any provision of this franchise occasioned by interruptions or
failure to commence delivery caused by an Act of God, or the public enemy, fire, explosions,
strikes, riots, war, order of any court or judge granted in any bona fide adverse legal proceedings
or action, or any order of any committee or tribunal having jurisdiction in the premises; or,
without limitation by the preceding enumeration, any other act or thing reasonably beyond its
control; or interruptions necessary for repairs or changes in Grantee's generating equipment or
distribution system.
Article XI
Definition
The term City as used herein shall include any future extension of the boundaries of the
City of Coppell.
Article XII
Savings Clause
If any section, paragraph, subdivision, clause, phrase or provision of this ordinance shall
be adjudged invalid or held unconstitutional, the same shall not affect the validity of this
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ordinance as a whole or any part or provisions thereof other than the part so decided to be invalid
or unconstitutional.
Article XIII
Acceptance of Agreement
Grantee shall have thirty (30) days from and after the passage and approval of this
ordinance to file its written acceptance thereof with the City Clerk and upon such acceptance
being filed this ordinance shall take effect and be in force from and after the date of its passage
and approval by the City Council.
Article XIV
7
Codification
This Ordinance shall be codified as Appendix B to the City Code of Ordinances and shall
be substituted for the present Appendix B, Electric Franchise, of the City Code of Ordinances.
PASSED and APPROVED on first reading, this day of
PASSED and APPROVED on second and final reading, this day of
ATTEST:
City Clerk
Mayor of the City of , Texas
8
CERTIFICATE
THE STATE OF TEXAS §
COUNTY OF §
I, , City Secretary of the City of , do hereby
certify that the above and foregoing is a true copy of an ordinance of the City of ,
duly passed by the City Council and approved by the Mayor on the day of
, and now appearing in the records of Ordinances of the City of
Texas.
Given under my hand and seal of the City of , this day of
City Secretary
E
Addendum -A
Equivalent Community Load Factor(s) and Average
Community
% Factor per
1998 kWh
1998 Revenue
Equivalent
Projected
kWh
per kWh
Annual Peak
Factor
BELLS, TX
2%
8,921,022
$ 708,362
0.0015881
BOGATA, TX
2%
9,645,648
$ 909,322
0.0018855
RIO VISTA, TX
2%
7,880,141
$ 729,210
0.0018508
SAINT JO, TX
2%
8,046,191
$ 650,477
0.0016169
TRENTON, TX
2%
7,893,980
$ 755,675
0.0019146
Average
2%
8,477,396
$ 750,609
0. 0017712
City of Coppell - Franchise Fee Projections
Projections
% Factor
Projected
Equivalent
Projected
Projected
per kWh
Annual Peak
Factor
Peak Annual
Quarterly
COPPELL, TX
2%
kWh
8,760,000
0.0017712
Fee
$15,516
Peak Fee
$3,879
• 2.5 MW projected peak load with an annual projected peak consumption rate of 8,760,000
kWh.
• As calculated: 2,500kWh x 8760 (annual hrs) x 40% (factored for retail and hours off) _
8,760,000 annual kWh
Footnote(s):'The factor is an amount based on all kilowatt hours (kWh) delivered within the city
limits regardless of customer class, pursuant to the Public Utility Regulatory Act § 33.008(b). The
charge per delivered kWh shall be determined by (i) dividing the total electric franchise fee
revenue for calendar year 1998 by the total number of kWh delivered to all customers within the
city limits in 1998 and (ii) multiplying the charge per kilowatt hour determined for 1998 by the
number of kilowatt hours delivered within the City during each calendar quarter.]
Kep Griffin - TNMP Franchise Draft Coppell, TX
From: "Nelson, Dan" <dnelson @tnpe.com>
To: "'kgriffin @ci.coppell.tx.us "' <kgriffin @ci.coppell.tx.us>
ite: 5/18/2005 9:16 AM
Subject: TNMP Franchise Draft_Coppell, TX
CC: "Yoon, Helen" <HYoon @tnpe.com >, "Walker, Neal' <nwalker @tnpe.com>
Ken, per your instructions, I have attached, i.e., faxed, a draft electric utility franchise proposal. This is in association
with the "Village Plaza" commercial development and the immediate geographical areas surrounding the project. Please review
and red -line as appropriate and return to this e-mail account.
Thank you for allowing us to serve your community.
Daniel Nelson
Lewisville /NTX Business Unit Mgr.
Texas New Mexico Power Company
1479 FM 407
Lewisville TX 75067
OFC 972 - 317 -5541
Cell 214- 549 -8855