Ordinance 14-T-02 - CPS Amendment to Frachise AgreementORDINANCE #14 -T -02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
PROVIDING FOR THE CREATION OF THE SCHERTZCOMMUNITY
INFRASTRUCTURE AND ECONOMIC DEVELOPMENT FUND; PROVIDING
THAT THIS ORDINANCE IS CUMULATIVE OF ALL OTHER ORDINANCES OF
THE CITY NOT IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Ordinance 04 -F -09, effective March 1, 2004, grants an electric and gas
franchise for twenty years to City Public Service (CPS Energy); and
WHEREAS, CPS Energy has requested an amendment to the existing franchise; and
WHEREAS, the City of Schertz (City) finds that amending the franchise agreement and
entering into the Addendum to Ordinance No. 04 -F -09 is in the best interests of the citizens
of the City as codified in Ordinance No. 14 -T -02; and
WHEREAS, the Addendum increases the Franchise Fee from 3 to 4 percent of gross
receipts; and
WHEREAS, the City of Schertz has budgeted 3 percent Franchise Fee revenues for FY
2013 -14 and has not budgeted the additional 1 percent increase in Franchise Fee revenues the
City will begin receiving in March 2014;
WHEREAS, the City of Schertz has previously received funds from CPS Energy
Community Infrastructure and Economic Development once the program was closed; and
WHEREAS, the City of Schertz desires to create its own Schertz Infrastructure and
Economic Development Fund with the additional 1 percent increase in Franchise Fee
revenues from CPS Energy for use in economic development, electric system improvements
and other purposes ; and
WHEREAS, Ordinance No. 14 -F -0 1 is scheduled to take effect March 13, 2014.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. City Council authorizes the creation of the SchertzInfrastructure and
Economic Development Fund (SIED Fund) to be funded by one - fourth of the Franchise
Fee received from City Public Service, d /b /a CPS Energy, beginning March 13, 2014.
The City reserves the right to amend the amount of the Franchise Fee allocation based
on various reasons, including any increases to the Franchise Fees received from CPS
Energy during the duration of the franchise agreement or at the time of the renewal of
the agreement.
Section 2. Funds from the City's SIED fund shall be appropriated by project by
Resolution of the City Council for the following purposes:
1. To benefit the community and improve the quality of life of customers through the
support of electric system improvements that have a public safety or public welfare
benefit to customers, or
2. To expand the economy of the City and thereby increase net electric revenues for the
economic benefit of the City, or
3. Any other put-pose the City Council may, in its determination, supports economic activity
or electric system improvements in the City of Schertz.
Section 3. This ordinance is effective upon the effective date of Ordinance No.14 -F -01, March
13, 2014.
Section 4. This Ordinance shall be cumulative of all provisions of ordinances of the City of
Schertz, Texas, except where the provisions of the Ordinance are in direct conflict with the
provisions such ordinances, in which event the conflicting provisions of such ordinances are
hereby repealed.
Section 5. It is hereby declared to be the intention of the City Council that the phrases, clauses,
sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase, clause
sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid
judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not
affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this
Ordinance, since the same would have been enacted by the City Council without the
incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph
or section.
PASSED ON FIRST READING, the 7th day of January, 2014.
PASSED, APPROVED and ADOPTED ON SECOND READING, the 11th day of February,
2014.
CITY (A SCHERTZ, TEXAS
David Scagfiola, Mayor Pro -Tern
ATTEST:
rF
Brenda Dennis, City Secretary
(CITY SEAL)