2011-223s:\legallour documents\ordinances1111coserv franchise ordinance.docx
ORDINANCE NO. 2411-223
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
GRANTING TO DENTON COUNTY ELECTRIC COOPERATIVE, INC., DB/A
COSERV ELECTRIC, ITS SUCCESSORS AND ASSIGNS, THE NON-EXCLUSIVE
RIGHT TO USE AND OCCUPY RIGHTS-OF-WAY WITHIN THE CITY OF DENTON
FOR THE CONSTRUCTION AND OPERATION OF AN ELECTRIC TRANSMISSION
AND DISTRIBUTION SYSTEM; PRESCRIBING CONDITIONS GOVERNING THE
USE OF THE PUBLIC RIGHTS-OF-WAY; PROVIDING FOR COMPENSATION
THEREFOR, PROVIDING FOR A TERM OF SAID FRANCHISE, PROVIDING FOR
WRITTEN ACCEPTANCE OF THIS FRANCHISE; FINDING THAT THE MEETING
AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC; PROVIDING
FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. DEFINITIONS
For the purpose of this ordinance the following terms, phrases, words, abbreviations and
their derivations shall have the meaning given herein. When not inconsistent with the context,
words used in the present tense include the future tense, words in the plural number include the
singular number, and words in the singular number include the plural number.
1. "City" shall mean the home rule municipal corporation designated as the City of
Denton, Texas, and includes the territory that currently is or may in the future be
included within the boundaries of the City. Any territory that may be de-annexed in
the future shall not be included within the boundaries of the City upon the effective
date of the de-annexation.
2. "CIAC" shall mean all payments received for contributions in aid of construction
performed within the boundaries of the City, including but not limited to System
Benefit Charges and Facilities Charges, on contracts entered into after the Effective
Date.
3. "Cooperative" shall mean Denton County Electric Cooperative, Inc., d/b/a CoServ
Electric, a Texas electric cooperative corporation, its successors and assigns.
4. "Effective Date" sha11 be the date specified in Section 22 of this Ordinance.
5. "Electric Distribution System" or "System" sha11 mean the Cooperative's system of
cables, wires, lines, poles, towers, anchors, guy wires, insulators, transformers,
substations, conduits, ducts, and any associated equipment, or plant, or other facilities
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designed and constructed for the purpose of producing, transmitting or distributing
electricity to or from customers or locations within the City, as the same now exists
and may from time to time be placed, removed, constructed, reconstructed, extended
and maintained.
6. "Governmental or Regulatory Authority" means any court, tribunal, arbitrator,
authority, agency, commission, official or other instrumentality of the United States,
or any state, county, city or other political subdivision.
7. "Laws" sha11 mean any and all federal, state and local statutes, constitutions,
ordinances, resolutions, regulations, judicial decisions, rules, tariffs, administrative
orders, certificates, orders, or other requirements of the City or other governmental
agency having joint or several jurisdiction over the parties to the Franchise granted
herein, in effect either as of the Effective Date or at any time during the term of the
Franchise granted herein.
8. "Pole Attachment Revenue" sha11 be an amount calculated by dividing the total
amount of pole attachment revenue received by the Cooperative in a calendar year by
the total number of Cooperative's meters in service as of December 31 of such
calendar year, and multiplying that result by the number of Cooperative's meters in
service within the corporate boundaries of the City as of December 31 of such
calendar year.
9. "Public Right-of-Way" shall mean all present and future public streets, public
thoroughfares, highways and alleys owned by City, and all present and future public
utility easements owned by the City that allow the use of Cooperative's facilities.
This term shall not include county, state, or federal rights of way or any property
owned by any person or agency other than the City, except as provided by applicable
Laws or pursuant to an agreement between the City and any such person or agency.
10. "Public Utility Commission of Texas" or "PUC" shall mean that agency as presently
constituted by the laws of the State of Texas or any successor agency.
ll."Tariff ' shall mean the Tariff for Electric Service for Cooperative, effective as of
May 1, 2010, and as subsequently revised or amended.
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SECTION 2. GRANT OF AUTHORITY.
A. There is hereby granted to Cooperative and its successors and assigns, the right,
privilege and franchise to construct, re-construct, extend, maintain, repair, remove and operate
in, along, under and across the Public Rights-of-Way of City an Electric Distribution System
consisting of electric power lines, with all necessary or desirable appurtenances and
communications cables, equipment, devices and other equipment (including underground
conduits, poles, towers, wires, transmission lines and other structures, and telephone and
communication lines for its own internal and non-commercial use), for the purposes of
supplying, operating, managing, controlling, optimizing, and maintaining electric service to the
City, the inhabitants thereof, and persons, firms and corporations beyond the corporate limits
thereof, and operating, managing, controlling, and maintaining local and regional distribution
and/or transmission systems, for the term set out in Section 13 ("Franchise"). The Franchise
granted herein does not grant to the Cooperative the right, privilege, or authority to engage in any
other business within the City requiring the grant of a right, privilege or authority by the City,
other than the provision of electric utility service.
B. The Franchise granted herein does not establish any priority for the use of the
Public Rights-of-Way by Cooperative or by any present or future recipients of franchise
agreements, franchisees, or other permit holders. In the event of any dispute as to the priority of
use of the Public Rights-of-Way, the first priority shall be to the public generally, the second
priority to the City, the third priority to the State of Texas and its political subdivisions in the
performance of their various functions, and thereafter, as between recipients of franchise
agreements, Cooperative and other permit holders, as reasonably determined by the City in the
lawful exercise of its powers, including the police power and other powers reserved to and
conferred on it by the State of Texas.
C. Cooperative acknowledges that by this Ordinance it obtains only the right to use
the Public Rights-of-Way that is expressly granted herein. Cooperative acknowledges and
accepts at its own risk that City may make use of the Public Rights-of-Way in a manner that is
inconsistent with Cooperative's placement and use of its Electric Distribution System located in
the Public Rights-of-Way, and in that event Cooperative shall not be entitled to compensation
from City except to the extent City is obligated to compensate Cooperative under applicable
Laws.
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D. Cooperative shall have the right to lease, license or otherwise grant to a party
other than Cooperative the use of its facilities within the City's Public Rights-of-Way, provided
that prior to the date of the initial attachment of the facilities of a new lessee, licensee, or user to
Cooperative's facilities, Cooperative shall notify the City of the name of the lessee, licensee, or
user, the type of service(s) intended to be provided through the facilities, and the name and
telephone number of a contact person associated with such lessee, licensee, or user. This
authority to lease facilities within the Public Rights-of-Way shall not affect any such lessee,
licensee, or user's obligation, if any, to pay franchise fees to the City.
SECTION 3. PURPOSE.
The provisions set forth in this Ordinance represent the terms and conditions under which
Cooperative shall construct, re-construct, extend, repair, remove, operate and maintain the
System within the Public Rights-of-Way of the City. In the Franchise granted herein, the City
does not in any manner surrender or waive its regulatory or other rights and powers under and by
virtue of the Constitution and statutes of the State of Texas as the same may be amended, nor any
of its rights and powers under or by virtue of present or future ordinances of the City, except as
may be set out herein. Not included in the Franchise granted herein are any facilities (including
any equipment attached in any way to Cooperative's facilities, whether owned by the
Cooperative or not) that provide data delivery, cable service, telephone service, and/or any other
service or product unrelated to the Cooperative's transmittal and delivery of electricity.
SECTION 4. OPERATION, CONSTRUCTION AND MAINTENANCE OF ELECTRIC
DISTRIBUTION SYSTEM.
A. Cooperative's System shall be initially constructed so as not to unreasonably
interfere with any existing publicly-owned or publicly-franchised water and wastewater lines,
gas lines, storm sewer lines, open drainage areas, cable, fiber optic cable, roadways, sidewalks,
alleys, traffic control devices, public signs, or any other publicly-owned or publicly-franchised
facility. The City shall have the right at any time to order and require Cooperative to remove and
abate any part of its Electric Distribution System that is unnecessarily dangerous to life or
property, and in case Cooperative, after notice, fails or refuses to act within a reasonable time,
the City shall have the power to remove or abate the same at the expense of Cooperative, all
without compensation or liability for damages to Cooperative.
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B. Permits
l. Cooperative's facilities shall interfere as little as reasonably possible with City-
owned public works facilities and with vehicular and pedestrian use of Public
Rights-of-Way.
2. Cooperative shall not be required to submit a permit application for the placement
of facilities outside of the Public Rights-of-Way, however, Cooperative shall
provide detailed drawings, in accordance with Cooperative's customaxy practice,
reflecting Cooperative's installations on private property so that City may verify
compliance with City ordinances related to zoning, development, building
regulations, and setbacics, and for easement verification.
3. Cooperative shall submit a permit application to City for the placement of new
facilities, for upgrade or augmentation of existing facilities, or for replacement of
existing facilities in the Public Rights-of-Way. Such permit application shall
include:
(a) complete plans and detailed drawings reflecting compliance with all
applicable zoning, development, and building requirements of the City;
and
(b) all additional information requested by City reasonably related to the
permit request.
4. Except as otherwise provided in this Section 4(B), following the submission of a
permit application described herein, notice of City's approval or denial of
Cooperative's request for a permit shall be provided in accordance with City's
usual procedures for processing of permit applications.
5. City shall endeavor to complete its review of Cooperative's application within
thirty (30) business days (excluding City holidays) after City's receipt of the
permit application and, if applicable, any additional information requested by City
reasonably related to the permit request. However, the time associated with
Cooperative's provision of a response to City's request for additional information
pursuant to Section 4(B)(3) above shall not be counted against the thirty (30)
business day time period.
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6. If City has not approved or denied Cooperative's request for a permit within thirty
(30) business days (excluding City holidays) after:
(a) receipt by City of the permit application (if no additional information was
requested by City), or
(b) receipt by City of all additional information requested by City reasonably
related to the permit request, then upon written request by Cooperative,
the City's Department Director in charge of the permit process shall,
within fifteen (15) days after such written request, approve (and issue) or
deny the permit in question. For good cause, the City's Department
Director may by written notice to Cooperative extend such 15-day time
period to approve or deny Cooperative's application for up to an
additional thirty (30) days.
7. Cooperative may proceed with the placement of the facilities described in its
permit application if written notice of City's approval or denial of cooperative's
request for a permit is not provided within fifteen (15) days (or such additional
number of days if extended by City's Department Director) of the date of
Cooperative's request pursuant to Section 4(B)(6) above.
8. A permit application for new overhead facilities not directly associated with a line
extension for new electric service, or for overhead facilities to augment, upgrade,
replace, or repair facilities within a Public Right-of-Way on existing poles
(existing pole lines) containing overhead facilities, may not be denied for
aesthetic reasons.
9. A permit application approved by the City may be valid for a period of time
consistent with the amount of time reasonably required for the Cooperative to
perform the work described in the permit application, and may be extended by
Cooperative for such time as reasonably required to complete such work upon
City's receipt of Cooperative's verification in writing of the need for such an
extension.
10. In determining the location of the Cooperative's new facilities within the City, the
Cooperative shall minimize interferences with then-existing or documented
planned underground structures of the City or with the existing facilities of other
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users of the Public Rights-of-Way. In determining the location of the facilities of
the City and other utility franchisees and other users of the Public Rights-of-Way
within the City, the City shall take reasonable steps to minimize the interference
with existing facilities of the Cooperative and shall require other utility
franchisees or users of the Public Rights-of-Way to minimize interference with
existing facilities of the Cooperative.
C. Cooperative's property and operations within the Public Rights-of-Way of the
City shall be subject to such reasonable and lawful rules and regulations of the City or other
Governmental or Regulatory Authority as may be authorized by applicable law from time to time
for the protection of the public health, safety and welfare. This Ordinance shall in no way affect
or impair the rights, obligations or remedies of the parties under the Texas Public Utility
Regulatory Act, or other state or federal law. Nothing herein shall be deemed a waiver, release
or relinquishment of either party's right to contest, appeal, or file suit with respect to any action
or decision of the other party, including ordinances adopted by the City that Cooperative believes
are contrary to applicable Laws.
D. Cooperative shall construct, re-construct, extend, repair, remove, rnaintain,
operate and replace its facilities in accordance with its Tariff and in conformance with the
applicable provisions of the National Electric Safety Code or such comparable standards as may
be adopted by the Cooperative, provided such comparable standards are not in conflict with the
National Electric Safety Code. Cooperative sha11 comply with applicable Laws and standards.
E. City may request that Cooperative place new facilities underground, provided
that, if Cooperative otherwise would, pursuant to its Tariff, construct those facilities overhead,
the City or property developer shall (a) bear the cost differential between overhead and
underground construction and facilities and (b) specify and provide, in compliance with the
Cooperative's reasonable specifications and requirements, a location for such underground
facilities.
F. Cooperative and City have agreed that Cooperative shall not be obligated to
provide maps identifying all Cooperative facilities within the City boundaries, provided however
that Cooperative agrees to provide reproducible copies of maps showing the location of all
Cooperative primary electric lines within the Public Rights-of-Way at least annually upon
request by City. The maps shall be provided in electronic digital format, if available. In
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addition, upon request, Cooperative sha11 cooperate with the City by identifying and locating, at
locations specified by the City, Cooperative's existing facilities such as underground conduits,
manholes to access such underground conduits, and other appurtenances and by providing
information to the City regarding Cooperative's plans for future facilities. Maps provided to
City by Cooperative shall be maintained as confidential by the City as provided in Section 15
hereo£ Upon request, the City shall cooperate with the Cooperative by identifying and locating,
at locations specified by the Cooperative, City's existing facilities such as water and sewer lines,
storm drains, communications lines, and appurtenances.
G. Any and all excavations and obstructions in and upon the Public Rights-of-Way
and other public places in the City caused by the Cooperative's operations under the Franchise
granted herein shall be repaired and removed as quickly as is reasonably possible, under the
circumstances. All excavations shall be repaired in a good and workmanlike manner and
restored to at least the condition that existed prior to the excavation. All utilities, irrigation
equipment, utility equipment, and any other improvements located in the Public Rights-of-Way
and disturbed by the Cooperative's operations under the Franchise granted herein shall likewise
be restored within a reasonable time to as good a condition as existed before the commencement
of the worlc to the satisfaction of the City. Replacement of sod is to be of like lcind, smoothed,
shaped, rolled and compacted for proper landscape maintenance. Cooperative warrants that any
such restoration worlc performed in the Public Rights-of-Way shall be in satisfactory condition
for a period of two (2) years after completion of restoration, to the extent that such restoration
work has not been disturbed by others. In the event that the Cooperative fails to repair or restore
an excavation site within fourteen (14) calendar days after receipt of written notice from the City
of a deficiency, the City may, at its option, perform the needed repair or restoration and the
Cooperative shall promptly reimburse the City for the cost of such repair or restoration.
H. City sha11 have the right to inspect all reconstruction or installation work and to
make such tests as it deems necessary to ensure compliance with the terms of this Ordinance, or
other applicable City ordinances or pertinent provisions of law.
I. The public shall be protected by barriers and lights placed, erected, marked and
maintained by the Cooperative in accordance with standards set forth in the current Texas
Manual on Uniform Traffic Control Devices as well as any other applicable local, state and
federal requirements. Except for repairs, day-to-day maintenance, or in cases of emergency
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conditions, work conducted within the Public Rights-of-Way shall require an approved permit
issued by the City prior to commencement of worlc. In no instance shall Cooperative be required
to pay fees or post bonds related to its use of the Public Rights-of-Way.
J. Cooperative shall have the authority to trim or remove trees and vegetation upon
or overhanging its System that may endanger or interfere with the System and its operation, and
to prevent the vegetation and the branches of such trees from coming in contact with the System.
The Cooperative's vegetation management practices shall be consistent with the safety
requirements for pruning, repairing, maintaining, and removing trees endorsed by the American
National Standards Institute (specifically the ANSI A300, titled "Best Management Practices,
Utility Pruning of Trees"); NESC Section 218; and state law. Except during an emergency or the
recovery after an emergency, Cooperative shall notify the City and its residents at least three (3)
days prior to entering onto property to perform any tree trimming activities. Within one year
after acceptance of the Franchise granted herein, and on a yearly basis thereafter, the Cooperative
will engage in a campaign to educate its customers within the City through bill inserts or other
reasonable methods regarding prudent tree selection and planting around power lines. The City
will encourage new developments to make prudent tree selection and planting decisions around
power lines.
K. Upon the written request of any person holding a building moving permit issued
by the City, Cooperative shall remove, raise or lower its wires temporarily to permit the moving
of a house, building or other bulky structure. The reasonable expense of such temporary
removal, raising or lowering shall be paid by the benefitted person or persons and Cooperative
may require such payment in advance. Cooperative shall be given not less than forty-eight (48)
hours advance notice in writing to arrange for such temporary removal, raising or lowering.
L. Nothing contained in this Ordinance shall be construed to require any pole
attachments for electric light or power wires or electrical facilities or systems not provided by
Cooperative, or any non-electric wires, facilities or systems, to be attached to Cooperative's
poles or other physical plant. If the City or any other person or entity desires pole attachments
for any such electric or non-electric wires, facilities or systems not provided by Cooperative,
then a further separate, non-contingent agreement sha11 be prerequisite to such attachments or
such use of any trench space. Nothing herein shall prohibit Cooperative from requiring
reasonable, non-discriminatory terms and from charging just compensation pursuant to a pole
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attachment or joint use agreement; however, any pole attachment or joint use agreement with a
third party shall not be enforceable by the City.
M. In areas of the City where the City finds that the Public Rights-of-Way will not
readily accommodate further facilities, the City may require Cooperative to share trench space
with the City or any other person authorized to use such Public Rights-of-Way for the placement
of its cables or ducts. Ducts, cables, or wires not owned by Cooperative shall be placed in
trenches in compliance with applicable safety and construction standards in a manner that does
not interfere with Cooperative's ducts, conduit, cables or wires. Nothing herein shall prohibit
Cooperative from requiring reasonable, non-discriminatory terms and from charging just
compensation for the use of its facilities or trench space; however, any such agreement with a
third party shall not be enforceable by the City.
N. The Cooperative shall hold itself ready to furnish, subject to Section 4(L) above,
such space as may be required from time to time by the City upon the poles now owned or
hereafter erected by the Cooperative in the City for the use of the City's police, fire alarm,
communications, and traffic signal systems (for purposes of this Section hereafter referred to as
"City Systems"); provided that such City use and placement shall be in compliance with
applicable safety and construction standards and shall not interfere with Cooperative's System.
The location on the poles of the City Systems shall be determined on specific applications for
space, at the time the applications are received from the City, and will be allotted in accordance
with the National Electrical Safety Code. In its wire construction on Cooperative's poles, the
City shall comply with the applicable suggestions, standards and requirements of the National
Electrical Safety Code and such construction shall not interfere with or cause damage to the
Cooperative's System.
O. City shall not sell, lease or otherwise make available any rights granted by
Cooperative to City to use Cooperative's facilities to any third party. Such rights are provided
solely for the non-commercial, governmental use by the City.
SECTION 5. RELOCATION OF FACILITIES.
A. The City reserves the right to lay, and permit to be laid, storm, sewer, gas, water,
wastewater and other pipe lines, cable, and conduits, or other improvements and to do and permit
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to be done any underground or overhead work that may be necessary or proper in, across, along,
over, or under Public Rights-of-Way occupied by Cooperative.
B. The City also reserves the right to change in any manner any curb, sidewalk,
highway, alley, public way, street, utility lines, storm sewers, drainage basins, drainage ditches,
and other public improvements. Upon request by City, Cooperative shall relocate, remove, ar
alter its facilities at its expense whenever such relocation, removal, or alteration is made
necessary by Public Right-of-Way or other public improvements, provided that the City shall
provide Cooperative with at least thirty (30) days prior written notice and shall specify and
provide a new location for such facilities within the Public Rights-of-Way. If Cooperative
believes that the cost is excessive to relocate, remove, or alter its facilities per the City request,
Cooperative shall have the opportunity to present alternative proposals for the City's
consideration. City may request that Cooperative relocate existing overhead facilities
underground when Cooperative is required to relocate facilities under this Section 5(B), provided
that the City or property developer shall (a) beax the cost differential between overhead and
underground construction and facilities and (b) specify and provide, in compliance with the
Cooperative's reasonable specifications and requirements, a new location for such facilities.
C. When Cooperative is required by City to remove or relocate its poles, towers,
conduits, cables, and other facilities to accommodate Public Right-of-Way improvements, and
Cooperative is eligible under Federal, State, County, City or other local agencies or programs for
reimbursement of costs and expenses incurred by Cooperative as a result of such removal or
relocation and such reimbursement is required to be handled through City, the Cooperative's
costs and expenses shall be included in any application by City for reimbursement, if
Cooperative submits its cost and expense documentation to City prior to the filing of the
application. City shall provide reasonable notice to Cooperative of the deadline for Cooperative
to submit documentation of the costs and expenses of such relocation to City.
D. If a Public Right-of-Way in which Cooperative has facilities is proposed to be
vacated, eliminated, discontinued, or closed, Cooperative shall be notified of same at least sixty
(60) days prior to such event, and all rights of Cooperative under this Ordinance to use same
shall terminate, provided that a reasonable alternate route within the Public Right-of-Way is
available for relocation of such facilities. Cooperative shall, as soon as reasonably possible,
remove the Electric Distribution System from such Public Right-of-Way unless Cooperative
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obtains any necessary easements from the affected property owner to use the former Public
Right-of-Way, or a court orders the provision of such easements. Where reasonably possible and
to the extent consistent with the treatment of other utility facilities in the former Public Right-of-
Way, City shall reserve easements for Cooperative to continue to use the former Public Right-of-
Way. Cooperative shall bear the cost of any removal or relocation of the Electric Distribution
System unless the vacation, elimination, discontinuance or closure is primarily for the benefit of
a private party, in which case the private party shall bear such costs.
E. If the City requires the Cooperative to adapt or conform its facilities, or in any
manner to alter, relocate, or change its property to enable any other entity to use, or use with
greater convenience, said Public Rights-of-Way, the Cooperative shall not be bound to make
such changes until such other entity shall have undertaken, with good and sufficient bond, to
reimburse the Cooperative for any costs, loss, or expense which will be caused by, or arises out
of such change, alteration, or relocation of Cooperative's property or facilities.
SECTION 6. INDEMNITY.
A. In consideration of the Franchise granted herein, Cooperative shall, at its sole cost
and expense, indemnify and hold the City, and its past and present officers, agents, and
employees (the "Indemnitees") harmless against any and all liability arising from any claim,
lawsuit, judgments, or action brought or made for or on account of any death, injuries to, or
damages received or sustained by any person or persons or for damage to or loss of property
arising out of, or occasioned by Cooperative's or any of its officers, agents, or employees,
intentional and/or negligent acts or omissions in connection with Cooperative's construction,
maintenance and operation of Cooperative's System in the Public Rights-of-Way, including any
court costs, expenses and defenses thereof.
B. This indemnity shall only apply to the extent that the loss, damage or injury is
attributable to the negligence or wrongful act or omission of the Cooperative, its officer, agents
or employees, and does not apply the extent such loss, damage or injury is attributable to the
negligence or wrongful act or omission of the City, or the City's agents, representatives or
employees or any other person or entity. 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 Cooperative
and the City.
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C. In the event of joint and concurrent negligence or fault of both the Cooperative
and the City, responsibility and indemnity, if any, shall be apportioned comparatively in
accordance with the laws of the State of Texas without, however, waving any governmental
immunity available to the City under Texas law and without waiving any of the defenses of the
parties under Texas law. Further, in the event of j oint and concurrent negligence or fault of both
the Cooperative and the City, responsibility for all costs of defense shall be apportioned between
the City and Cooperative based upon the comparative fault of each.
D. In fulfilling its obligations to defend and indemnify City, Cooperative shall have
the right to select defense counsel, subject to City's approval, which will not be unreasonably
withheld. Cooperative shall retain defense counsel within seven (7) business days of City's
written notice that City is invoking its right to indemnification under this Contract. If
Cooperative fails to retain counsel within such time period, City shall have the right to retain
defense counsel on its own behalf, and Cooperative shall be liable for all reasonable defense
costs incurred by City.
SECTION 7. LIABILITY INSURANCE.
Cooperative shall, at its sole cost and expense, obtain, maintain, or cause to be
maintained, and provide, throughout the term of the Franchise granted herein, insurance in the
amounts, types and coverages set forth below. Such insurance may be in the form of self-
insurance to the extent not precluded by applicable law or by obtaining insurance, as follows:
1. Commercial general or excess liability on an occurrence or claims made form
with minimum limits of not less than five million dollars ($5,000,000) per
occurrence and not less than ten million dollars ($10,000,000) aggregate. To the
extent that coverage is maintained on a claim made form, the minimum limits are
not less than ten million dollars ($10,000,000) per occurrence and not less than
twenty million dollars ($20,000,000) aggregate. This coverage shall include the
following:
(a) Products/completed operations to be maintained for the warranty
period specified in Section 4(G) provided, however, that no bond
shall be required.
(b) Personal and advertising injury.
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(c) Contractualliability.
(d) Explosion, collapse, or underground (XCU) hazards.
2. Automobile liability coverage with a minimum policy limit of not less than one
million dollars ($1,000,000) combined single limit each accident. This coverage
sha11 include all owned, hired and non-owned automobiles.
3. Statutory workers' compensation benefits in accordance with the statutes and
regulations of the State of Texas. Cooperative must provide the City with a
waiver of subrogation for workers compensation claims.
4. Cooperative must name the City, which includes all authorities, commissions,
divisions, and departments, as well as elected and appointed officials, agents, and
volunteers, as additional insureds under the coverage required herein, except
workers' compensation coverage. The certificate of insurance must state that the
City is an additional insured.
5. Cooperative will require its contractors and subcontractors performing work
within the Public Rights-of-Way to maintain, at their sole cost and expense,
commercial general or excess liability on an occurrence or claims made form with
minimum limits of not less than one million dollars ($1,000,000) per occurrence
and not less than two million dollars ($2,000,000) aggregate. Such insurance
sha11 be required under the same conditions as specified herein for Cooperative.
Cooperative will maintain at all times, and will provide to City upon request,
proof of its contractors' and subcontractors' compliance with this requirement.
6. The Cooperative will provide proof of insurance in accordance with this
Ordinance within 30 days of the effective date hereof and annually thereafter.
Cooperative will not be required to furnish separate proof when applying for
permits.
7. All polices shall be endorsed to read: "THIS POLICY WILL NOT BE
CANCELLED OR NON-RENEWED WITHOUT 30 DAYS ADVANCE
WRITTEN NOTICE TO THE CITY EXCEPT WHEN THIS POLICY IS BE1NG
CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE TEN
(10) DAYS ADVANCE WRITTEN NOTICE IS REQUIRED.
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SECTION 8. NON-EXCLUSIVE FRANCHISE.
The Franchise granted herein is not exclusive, and nothing herein contained shall be
construed so as to prevent the City from granting other like or similar rights, privileges and
franchises to any other person, firm, or corparation.
SECTION 9. COMPENSATION TO THE CITY.
A. In consideration of the grant of said right, privilege and franchise by the City and
as full payment for the right, privilege and franchise of using and occupying the said Public
Rights-of-Way, Cooperative shall pay to the City a franchise fee as set forth herein ("Franchise
Fee").
l. The Franchise Fee sha11 be in lieu of any and all occupation taxes, assessments,
municipal charges, fees, easement taxes, franchise taxes, license, permit and
inspection fees or charges, street taxes, bonds, street or alley rentals, and all other
t�es, charges, levies, fees and rentals of whatsoever kind and character which the
City may impose or hereafter be authorized or empowered to levy and collect,
excepting only the usual general or special ad valorem taxes which the City is
authorized to levy and impose upon real and personal property, sales and use
taxes, and special assessments for public improvements.
2. The Franchise Fee shall be paid quarterly, within forty-five (45) days after the end
of each calendar quarter (i. e., by May 15, August 15, November 15, and
February 15 of each yeax of this Franchise term); provided that the Franchise Fee
on Pole Attachment Revenue shall be paid annually by May 15.
3. Quarterly payments shall be a sum comprised of the following:
(a) the product of a factor of $0.005764 multiplied by each kilowatt hour of
electricity delivered by Cooperative to each retail customer whose
consuming facility's point of delivery is located with City's municipal
boundaries; and
(b) a sum equal to four percent (4%) of payments received by Cooperative for
CIAC.
4. The Franchise Fee on Pole Attachment Revenue shall be four percent (4%) of
Pole Attachment Revenue.
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5. Payments shall continue in like manner for any extension of the Franchise granted
herein as provided in Section 13 hereof.
B. With each payment of compensation required by Section 9.A, Cooperative shall
furnish to the City a statement, executed by an authorized officer of Cooperative or designee, in
sufficient detail to show how each component of the payment described herein was arrived at
and how the amount paid to the City was determined for the pertinent quarter.
C. If either party discovers that Cooperative has failed to pay the entire or correct
amount of compensation due, the correct amount shall be determined by mutual agreement
between the City and Cooperative and the City shall be paid by Cooperative within thirty (30)
calendar days of such determination or such additional time as mutually agreed to by the City
and Cooperative. Any overpayment to the City through error or otherwise will, at the sole option
of the City, either be refunded or offset against the next payment due from Cooperative.
Acceptance by the City of any payment due under this Section shall not be deemed to be a
waiver by the City of any breach of this Ordinance, nor sha11 the acceptance by the City of any
such payments preclude the City from later establishing that a larger amount was actually due or
from collecting any balance due to the City.
D. Interest on late payments and underpayments shall be calculated in accordance
with the interest rate for customer deposits established by the Public Utility Commission of
Texas in accordance with Texas Utilities Code § 183.003, as amended, for the time period
involved.
E. No taxes, fees, or other payments by Cooperative to the City, including, but not
limited to, ad valorem taxes, shall reduce the franchise fees payable to the City hereunder, except
as agreed to by the City in Section 9.
F. Within thirty (30) days after the effective date of this Ordinance, the City shall
provide Cooperative (at the notice address specified in Section 18) with maps clearly showing
the location of the boundaries of the City. Within thirty (30) days after City annexes property
into, or de-annexes property from, the territory of City, City shall provide Cooperative (at the
notice address specified in Section 18) with maps clearly showing the location of the boundaries
of such annexed or de-annexed property. Within sixty (60) days, or such additional time as
mutually agreed to by the City and Cooperative, after Cooperative's receipt by certified mail of
(i) written notice from the City that the City has annexed territory into the City and (ii) maps
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showing clearly the areas annexed, the Cooperative shall revise its accounting records to include
the annexed territory, and Cooperative's customers therein, within the City. After such time
period, each kilowatt hour of electricity delivered by Cooperative to each retail customer whose
consuming facility's point of delivery is located within such annexed area shall be included in
the calculation of the amount described in Section 9(A) above.
G. Cooperative is hereby authorized to surcharge to customers within the City a11 or
any portion of the Franchise Fee that is the subject of this Ordinance. All bills for service
rendered within the City may be adjusted so as to recover the Franchise Fee that is the subject of
this Ordinance, less any percentage that is recovered by Cooperative through base rates or other
charges.
SECTION 10. ACCOUNTING MATTERS.
A. Cooperative shall keep accurate books of account at its principal office for the
purpose of determining the Franchise Fee amount due to the City under this Ordinance.
Cooperative shall retain such books, records, and documents and other evidence pertaining to the
Franchise granted herein and Franchise Fee payments due hereunder for a period of not less than
five (5) years, except if an audit is in progress or audit findings are yet unresolved, in which case
records shall be kept until all audit tasks are completed and resolved. Each of the terms "books,"
"records," "documents," and "other evidence" as used herein shall be construed to include
electronic files.
B. The City may conduct an audit or other inquiry in relation to a Franchise Fee
payment made by Cooperative or may pursue a cause of action in relation to Cooperative's
payment of any Franchise Fee only if such audit, inquiry, or pursuit of a cause of action concerns
a payment made less than two years before the commencement of such audit, inquiry, or pursuit
of a cause of action. Provided, the City shall not, after the Effective Date of this Ordinance,
initiate an audit of or seek any other remedies related to the Franchise Fee payments by the
Cooperative for any period prior to the Effective Date of this Ordinance. The City may, if it sees
fit, upon reasonable notice to the Cooperative, examine, audit, and obtain copies of the books
and records of the Cooperative related to the Franchise Fee. Cooperative shall make available all
requested books, records, documents and other evidence within thirty (30) calendar days of
City's written request for same.
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C. If the results of any audit indicate that Cooperative (i) paid the correct Franchise
Fee, (ii) overpaid the Franchise Fee and is entitled to a refund or credit, or (iii) underpaid the
Franchise Fee by five percent (5%) or less, then the City sha11 pay the costs of the audit. If the
results of the audit indicate the Cooperative underpaid the Franchise Fee by more than five
percent (5%), then the Cooperative shall pay the reasonable costs of the audit.
D. Upon the reasonable request of the City, the Cooperative shall use commercially
reasonable efforts to make available to the auditor at the Cooperative's offices where such
records are maintained and such personnel are located, during the Cooperative's regular business
hours and upon reasonable notice, such personnel and records as the Cooperative, in its
reasonable discretion, determines are necessary or appropriate to the City's request in order to
complete such audit, and shall make no charge to the City therefor; provided, however, any copy
expenses or other out-of-pocket expenses incurred by the Cooperative as a result of requests by
the City or its auditor, sha11 be the responsibility of the City and the City shall promptly pay the
reasonable cost thereof to the Cooperative.
1. If as the result of any City audit, Cooperative is refunded/credited for an
overpayment or pays the City for an underpayment of the franchise fee, such
refund/credit or payment shall be made pursuant to the terms established in
Sections 9.C. and 9.D.
2. If as a result of a subsequent audit, initiated within two years of an audit which
resulted in Cooperative making a payment to the City due to an underpayment of
the franchise fee of more than five percent (5%), Cooperative makes another
payment to the City due to an underpayment of the franchise fee of more than five
percent (5%), the City may also recover interest on the total amount of
underpayment at the interest rate in effect on the date of the invoice (calculated as
provided in Section 9.D. hereo�, plus two percent (2%) on the entire amount from
the date of invoice.
3. If the results of the audit indicate that the Cooperative underpaid the Franchise
Fee by more than five percent (5%), and the Cooperative is unable to produce
reasonable evidence that the results of the audit are not accurate, then the
Cooperative shall pay to the City a penalty equal to five percent (5%) of the total
amount underpaid in addition to the total amount underpaid. No penalty shall be
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assessed for uncollected Franchise Fees by Cooperative; however, the
Cooperative sha11 provide evidence of the actual amount of uncollected Franchise
Fees. Interest on the total amount of underpayment shall be paid at the interest
rate in effect on the date the original payment was due (calculated as provided in
Section 9.D. hereo fl, plus two percent (2%), and interest shall be calculated from
the time the original amount was due. Any additional amount due to City
hereunder shall be paid within thirty (30) days from the date of invoice. Any
amount not paid within thirty (30) days from the date of the invoice will cause
interest to be payable at the interest rate in effect on the date of the invoice
(calculated as provided in Section 9.D. hereo fl, plus two percent (2%) on the
entire amount from the date of invoice.
E. The Cooperative sha11 assist the City in its review by responding to all requests
for information no later than thirty (30) days after receipt of a request unless a different schedule
is agreed to by the City and Cooperative.
F. If the Cooperative bundles, ties, or combines electric services (which are subject
to the Franchise Fee) with non-electric services (which are not subject to the Franchise Fee), the
provisions of this subsection shall apply.
1. If the Cooperative bundles such services and assesses a customer only one fee, the
total revenue there from shall be allocated to the electric services to the full extent
that would have been charged by Cooperative if the customer had received only
electric services. The rebuttable presumption shall be that any discount offered is
not attributable to a discount in electric services, but is in fact attributable to a
discount in the non-electric services provided by the Cooperative.
(For example, assume that the Cooperative offers a price of $100 to
customers for bundling electric services, cable television services, and
local telephone services. Based on mandatory tariff rates, the Cooperative
should have received $80 for electric services, $30 for cable television
services, and $10 for local telephone service, for a total of $120. Thus, the
Cooperative's Franchise Fee calculation would be based on the full $80
that is presumed to be attributable to electric services, unless the
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Cooperative demonstrates to the city that electric services were actually
discounted in addition to the discounted non-electric services.)
2. If the Cooperative offers its customers any kind of discount for receipt of both
electric services and non-electric services, the discount shall be applied
proportionately to electric services and non-electric services upon notification to
the City of such discount methodology. Such notification shall include the
amount of the discount being applied to each service and documentation
demonstrating the promotion and billing of such discount. This subsection shall
also apply to any and all price increases related to bundled services.
(For example, assume that a customer's monthly charge for electric
services alone would be $40; for local telephone service alone, $30; and
for cable television service alone, $30; for a total of $100. If the
Cooperative offers a single rate to the customer for taking all three
services from Cooperative that, in effect, amounts to a 20% discount from
the rates that would apply to the services if purchased individually, the
aggregate discount in this example is $20. For computation of the
Franchise Fee, the $20 discount would be applied pro rata so that Gross
Revenue hereunder would be deemed to be $32 (i.e., a 20% discount from
the $40 fee for electric services). The result would be the same if the
Cooperative offers a specific dollar discount for any services provided,
such as, for example, a$20 discount for local telephone services offered
on the condition that the subscriber also take electric services at the
standard $40 rate.
3. In the event that the Cooperative receives from a customer an amount less than
the mandatory tariff rate amount that it would be entitled to receive for electric
services due to bundling, then subsection 10.F.2., shall apply. However, City
shall not require Cooperative to remit Franchise Fees based on an amount that is
more than Cooperative actually receives for the bundled services or more than
would be due from Cooperative as a Franchise Fee based on the actual tariffed
rate for electric services.
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SECTION 11. RIGHT OF RENEGOTIATION.
A. Should either Cooperative or the City have cause to believe that a change in
circumstances relating to the terms of the Franchise granted herein may exist, it may request that
the other party provide it with a reasonable amount of information to assist in determining
whether a change in circumstances has taken place. If the Cooperative elects to participate in
custorner choice (i. e., retail competition), it shall notify the City within thirty (30) days of the
Cooperative's election to so participate.
B. Should either party hereto determine that based on a change in circumstances, it is
in such party's best interest to renegotiate all or some of the provisions of this Ordinance, then
the other party agrees to enter into good faith negotiations. Said negotiations shall involve
reasonable, diligent, and timely discussions about the pertinent issues and a resolute attempt to
settle those issues. The obligation to engage in such negotiations does not obligate either party
to agree to an amendment of this Ordinance as a result of such negotiations. A failure to agree
does not show a lack of good faith. If, as a result of renegotiation, the City and Cooperative
agree to a change in a provision of the Ordinance, the change shall become effective upon
passage of an ordinance by the City in accordance with the City Charter and acceptance of the
ordinance by Cooperative.
SECTION 12. TRANSFER AND ASSIGNMENT.
The Franchise granted herein shall not be assigned or transferred without the written
consent of the City, which consent shall not be unreasonably withheld, provided, however, that
Cooperative 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 Cooperative hereunder, and (ii) is bound to the same extent as
Cooperative hereunder. Cooperative shall give the City sixty (60) days prior written notice of
any assignment to a parent, subsidiary, affiliate or successor entity. Any required consent shall
be expressed by an ordinance that fully recites the terms and conditions, if any, upon which such
consent is given. Any assignment or transfer effected prior to the City's approval thereof, if
required, shall authorize the City to treat such assignment or transfer as an Uncured Event of
Default and immediately implement the provisions of Section 14, including the right to terminate
the Franchise granted herein.
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SECTION 13. TERM.
This Ordinance shall become effective on the Effective Date and shall expire on
December 31, 2022; provided that, unless written notice of non-renewal is given by either party
hereto to the other not less than six (6) months before the expiration of the Franchise granted
herein, it shall be automatically renewed for an additional period of one (1) year from such
expiration date and shall be automatically renewed thereafter for like periods until canceled by
written notice given not less than six (6) months before the expiration of any such renewal
period.
SECTION 14. DEFAULT, REMEDIES AND TERMINATION.
A. Events of Default. The occurrence, at any time during the term of the Franchise
granted herein, of any one or more of the following events, shall constitute an Event of Default
by Cooperative under this Ordinance:
1. The failure of Cooperative to pay the Franchise Fee on or before the due dates
specified herein.
2. Cooperative's breach or violation of any of terms, covenants, representations or
warranties contained herein or Cooperative's failure to perform any material
obligation contained herein.
B. Uncured Events of Default.
1. Upon the occurrence of an Event of Default which can be cured by the immediate
payment of money to City or a third party, Cooperative shall have thirty (30)
calendar days after receipt of written notice from City of an occurrence of such
Event of Default (or such longer time as the City may specify in such notice) to
cure same before City may exercise any of its rights or remedies pursuant to
Section 14.C.
2. Upon the occurrence of an Event of Default by Cooperative which cannot be
cured by the immediate payment of money to City or a third party, Cooperative
shall have sixty (60) calendar days (or such additional time as may be agreed to
by the City) after receipt of written notice from City of an occurrence of such
Event of Default to cure same before City may exercise any of its rights or
remedies pursuant to Section 14.C.
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3. If the Event of Default is not cured within the time period allowed for curing the
Event of Default as provided for herein, such Event of Default shall, without
additional notice, become an Uncured Event of Default, which shall entitle City to
exercise the remedies pursuant to Section 14.C.
C. Remedies. Upon receipt of a notice of an alleged Uncured Event of Default as
described in Section 14.B, which notice shall specify the alleged failure with reasonable
particularity, the Cooperative shall, within the time periods specified in Section 14.B or such
longer period of time as the City may specify in such notice, either cure such alleged failure or in
a written response to the City either present facts and arguments in refuting or defending such
alleged failure or state that such alleged failure will be cured and set forth the method and time
schedule for accomplishing such cure. In the event that such cure is not forthcoming or the City
determines that an unexcused Uncured Event of Default has occurred, City shall be entitled to
exercise any and a11 of the following cumulative remedies;
1. The commencement of an action against Cooperative at law for monetary
damages.
2. The cornmencement of an action in equity seeking injunctive relief or the specific
performance of any of the provisions, which as a matter of equity, are specifically
enforceable.
3. The termination of the Franchise granted herein.
D. Remedies Not Exclusive. The rights and remedies of City and Cooperative set
forth in this Ordinance shall be in addition to, and not in limitation of, any other rights and
remedies provided by law or in equity. City and Cooperative understand and intend that such
remedies shall be cumulative to the maximum extent permitted by law and the exercise by City
of any one or more of such remedies shall not preclude the exercise by City, at the same or
different times, of any other such remedies for the same failure to cure. However,
notwithstanding this Section or any other provision of this Ordinance, City shall not recover both
liquidated damages and actual damages for the same violation, breach, or noncompliance, either
under this Section or under any other provision of this Ordinance.
E. Termination. The Franchise granted herein may be terminated only in accordance
with the provisions of Section 14.C. City shall notify Cooperative in writing at least thirty (30)
business days in advance of the City Council meeting at which the questions of termination shall
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be considered, and Cooperative shall have the right to appear before the City Council in person
or by counsel and raise any objections or defenses Cooperative may have that are relevant to the
proposed forfeiture or termination. The final decision of the City Council may be appealed to
any court or regulatory authority having jurisdiction. Upon timely appeal by Cooperative of the
City Council's decision terminating the Franchise granted herein, the effective date of such
termination shall be either when such appeal is withdrawn or a court order upholding the
termination becomes iinal and unappealable. If no appeal is filed, the effective date of such
termination shall be the thirtieth (30th) day following the date of the final termination decision of
the City Council. Until the termination becomes effective the provisions of the Franchise
granted herein shall remain in effect for all purposes.
F. The failure of the City to insist in any one or more instances upon the strict
performance of any one or more of the terms or provisions of this Ordinance shall not be
construed as a waiver or relinquishment for the future of any such term or provision, and the
same shall continue in full force and effect. No waiver or relinquishment shall be deemed to
have been made by the City unless said waiver or relinquishment is in writing and signed by the
City.
SECTION 15. PUBLIC INFORMATION.
If the Cooperative provides confidential or proprietary information to the City, the
Cooperative shall be solely responsible for identifying such information with markings
calculated to bring the City's attention to the proprietary or confidential nature of the
information, provided it is expressly understood and agreed that all maps and all information
concerning franchise fee calculation and payments and audit information furnished by or on
behalf of the Cooperative to the City or its auditors or consultants shall be deemed strictly
confidential and subject to the City's agreement in the next sentence. The City agrees to
maintain the confidentiality of any information obtained from Cooperative so designated to the
fullest extent allowed by law. If the City is not permitted by applicable law to maintain such
coniidentiality, the City shall notify the Cooperative of such fact at the time the City requests any
such information from the Cooperative or, in a11 other events, prior to receiving such information
from the Cooperative. City shall not be liable to Cooperative for the release of any information
the City is required to release by law. City shall provide notice to Cooperative of any request for
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release of information designated as confidential or proprietary prior to releasing the information
so as to allow Cooperative adequate time to pursue available remedies for protection. If the City
receives a request under the Texas Public Information Act that includes information designated
by Cooperative as proprietary or conf dential, City will notify the Texas Attorney General of the
asserted proprietary or confidential nature of the document(s). The City also will provide
Cooperative with a copy of such notification to the Texas Attorney General, and thereafter
Cooperative is responsible for establishing that an exception under the Texas Public Information
Act allows the City to withhold the information.
SECTION 16. PUBLIC PURPOSE.
All of the provisions contained in this Ordinance are hereby declared to be for a public
purpose, and are in the interests of the health, safety, and welfare of the general public.
SECTION 17. SEVERABILITY; ORDINANCE CONTROLLING.
If any provision, section, subsection, sentence, clause or phrase of the Ordinance is for
any reason held to be unconstitutional, void or invalid (or for any reason unenforceable), the
validity of the remaining portions of this Ordinance shall not be affected thereby, it being the
intent of the parties in adopting this Ordinance that no provision hereof shall be inoperative or
fail by reason of any unconstitutionality or invalidity of any other portion, provision, or
regulation, and to that end, all provisions of this Ordinance are declared to be severable. Both the
Cooperative and the City expressly recognize that this Ordinance creates a binding and
enforceable contract between them, which contract may not be amended without written consent
of both the Cooperative and the City. Should the City enact an ordinance or ordinances that
create an inconsistency or conflict between the provisions of this Ordinance and such other
ordinance or ordinances during the term of this Franchise, then the provisions of this Ordinance
shall control to the extent of such inconsistency or conflict to the extent not prohibited by law.
SECTION 18. NOTICE.
Any notices required or desired to be given from one party to the other party to this
Ordinance shall be in writing and sha11 be given and sha11 be deemed to have been served and
received if: (i) delivered in person to the address set forth below; (ii) deposited in an official
depository under the regular care and custody of the United States Postal Service located within
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the confines of the United States of America and sent by certified mail, return receipt requested,
and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by
courier receipted delivery. Either party may designate another address within the confines of the
continental United States of America far notice, but until written notice of such change is
deemed served and received by the other party as provided above, the last address of such party
designated for notice sha11 remain such party's address for notice.
CITY
City of Denton
Attention: City Manager
215 E. McKinney Street
Denton, Texas 76201
SECTION 19. ACCEPTANCE.
C K � Z � ] ' � � .7_ 1 I 1 I ► � / � !
Denton County Electric Cooperative, Inc.,
d/b/a CoServ Electric
7701 S. Stemmons Freeway
Corinth, Texas 76210-1842
Attention: President
In order to accept the Franchise granted herein, Cooperative must file with the City
Secretary its written acceptance of this Ordinance within sixty (60) days after the City provides
written notice to Cooperative of this Ordinance's final passage and approval by City (the "City
Adoption Notice"). Pending such time, City shall publish, and Cooperative shall pay all
publication expenses regarding notification of, the accepted Franchise, which said publication
shall be the full text of the adopted ordinance for a period of once per week for three (3)
consecutive weeks.
Upon Cooperative's written acceptance of the terms of this Ordinance, all claims of City
and Cooperative under any prior franchise ordinance or other agreement between the parties that
were or could have been made by either party shall be forever waived and extinguished.
SECTION 20. FUTURE AMENDMENTS.
This Ordinance may be amended only by an Ordinance adopted by the City and accepted
by the Cooperative in writing.
SECTION 21. ORDINANCE PASSED AT PUBLIC MEETING.
It is hereby officially found that the meeting at which this Ordinance is passed is open to
the public and that due notice of this meeting was posted, all as required by law.
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SECTION 22. EFFECTIVE DATE.
Upon the filing of Cooperative's written acceptance of the Franchise granted herein, this
Ordinance shall become effective as of the first day of the calendar month that is not less than
sixty (60) days after the final adoption of this Ordinance by the City.
SECTION 23. REPEAL.
This Ordinance sha11 supersede any and all other franchises granted by the City to
Cooperative, its predecessors and assigns.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
B
APP OVED S TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
The City of Denton, Texas, acting herein by its duly co�?stituted aut orities, hereby
declares the foregoing Ordinance passed on first reading on he /'l day of ,
2011, and passed on sec5o,�d reading on the /�t day of , 2011, and passe s�
third reading on the /�- day of , and being finally effective as of the /—
James King, Councilmember
27
�V�vw �.-� �v�-
vin Roden, ouncilmember
F
J' ngel recht, ouncilmember
Pete Kamp, Councilmember
s:\legallour documentslordinances\l llcoserv franchise ordinance.docx
The above and foregoing Ordinance rea , adopted on first reading and passed to second
reading by the following votes, this the � day of (�f%(?�Q�� , 2011, at a regular
session of the City Council.
Mark Burroughs, Mayor, voting G�j/2 .
Kevin Roden, Councilmember, vot��2 .
Dalton Gregory, Councilmember, voting Q, "Q, .
Jim Engelbrecht, Councilmember, voting s��' �.'j f
Chris Watts, Councilmember, voting �;c. F� .
Pete Kamp, Councilmember, voting C�t �.
James King, Councilmember voting �.
The above and foregoing Ordinance rea , adopted on econd reading and passed to third
reading by the following votes, this the ��� day of , 2011, at a regular
session of the City Council.
Mark Burroughs, Mayor, voting Q�' .
Kevin Roden, Councilmember, voting (,�
Dalton Gregory, Councilmember, voting
Jim Engelbrecht, Councilmember, voting
Chris Watts, Councilmember, voting �.
Pete Kamp, Councilmember, voting �.
James King, Councilmember voting � t/G .
�`
The above and forego g Ordinance read, a opted on third reading and passed by the
following votes, this the /s�day of , 2011, at a regular session of the City
Council.
Mark Burroughs, Mayor, voting �.
Kevin Roden, Councilmember, voting C� �.
Dalton Gregory, Councilmember, voting � .
Jim Engelbrecht, Councilmember, voting�.
Chris Watts, Councilmember, voting /,l,V�.
Pete Kamp, Councilmember, voting �LT f
James King, Councilmember votingQ,(j5'P�l'1 f"
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STATE OF TEXAS
COUNTY OF DENTON
I, Jennifer Walters, City Secretary of the City of Denton, Texas, do hereby certify that the
above and foregoing is a true and correct copy of the Franchise Agreement Ordinance between
the City of Denton and Denton County Electric Cooperative, Inc., doing business as CoServ
Electric. The same is now recorded as Ordinance Number �0/� 2�,3 in the Ordinance
Records of the City of Denton, Texas.
WITNESS MY HAND this the �� day of , 20 �/ .
(SEAL)
*�*******
29
�
ifer alters, City Secretary
ACCEPTANCE
WHEREAS, the City Council of the City of Denton, Texas (the "City"), did on the 1 st
day of November, 2011, enact an Ordinance (a copy of which is attached hereto as Exhibit A)
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
GRANTING TO DENTON COUNTY ELECTRIC COOPERATIVE, INC., D/B/A COSERV
ELECTRIC, ITS SUCCESSORS AND ASSIGNS, THE NON-EXCLUSIVE RIGHT TO USE
AND OCCUPY RIGHTS-OF-WAY WITHIN THE CITY OF DENTON FOR THE
CONSTRUCTION AND OPERATION OF AN ELECTRIC TRANSMISSION AND
DISTRIBUTION SYSTEM; PRESCRIBING CONDITIONS GOVERNING THE USE OF THE
PUBLIC RIGHTS-OF-WAY; PROVIDING FOR COMPENSATION THEREFOR,
PROVIDING FOR A TERM OF SAID FRANCHISE, PROVIDING FOR WRITTEN
ACCEPTANCE OF THIS FRANCHISE; FINDING THAT THE MEETING AT WHICH THIS
ORDINANCE IS PASSED IS OPEN TO THE PUBLIC; PROVIDING FOR SEVERABILITY;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, said Ordinance was on the lst day of November, 2011, duly approved and
subscribed by the Mayor of said City, and the seal of said City was thereto affixed and attested to
by the City Secretary;
NOW, THEREFORE, Denton County Electric Cooperative, Inc., d/b/a CoServ Electric
("CoServ") hereby in a11 respects ACCEPTS, APPROVES AND AGREES TO said Ordinance,
and the same shall constitute and be a binding contractual obligation between CoServ and the
City, without waiver of any other remedy by CoServ or the City, and CoServ does hereby file
this, its written acceptance, with the City Secretary of the City of Denton, Texas, in her office.
0
DATED this the 28th day of December, 2011.
DENTON COUNTY ELECTRIC COOPERATIVE, 1NC.,
D/B/A COSERV ELECTRIC
By:
Curtis Trivitt, Senior Vice resident — Energy Services
� * * * * *
A� TAN FILE��`in the Office of the City Secretary of the City of Denton, Texas, this the
�1�' aaY o �
��
, -
nnifer alters, City Secretary