1989R03- RAISE THE CAP ON STREET USE CHARGE
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RESOLUTION NO. 'ilCJ-J(l-j
URGING THE TEXAS LEGISLATURE. TO RAISE THE
CAP 0:; STREET USE CHARGES FOR ELECTRIC
AND GJ.s UTILITIES
WHEREAS, Texas cities and towns grant gas and electric
utility companies the privilege of using City
property and rights-oi-way as the most effective
way to provide servic~s to end user customers; and
WHEREAS, without such privilege, gas and electric companies
could not provide such services and re~lize prof-
its; and
WHEREAS, Texas cities and towns may charge a fee for the use
of their property under the laws of the State of
Texas, and may not constitutionally make a gift or
lend its cr~dit to a private person or entity; and
WHEREAS, in 1941, the Texas Legislature restricted the
amount of street use charge a city or town could
charge to an electric or gas utility within the
city, limiting the total charges to two percent
(2%) of gross receipts of the public utility from
the sale of gas or electricity within the city I
absent an agreement with the gas or electric
company; and
WHEREAS, since 1941 the cost of providing such right-of-way
by cities and towns hn5 increased such that through
the passage of time the two percent (2%) c~p
compels Texas cities and towns to provide valuable
property rights to gas and electric companies
contrary to the Texas Constitution, thereby compel-
ling local taxpayers to subsidize the business
operations of the utility companies: and
WHEREAS, che federal Cable Franchise Policy and Communica-
tions Act of 1984 authorizes a franchise fce of up
to five percent (5't) of gross receipts tor the
operation of a cable television syst:.~m within a
city; and
WHEREAS, several utility companies have volunearily agreed
to pay a str~et use charge in excess at the 1941
cap for el~ctric and gas utiliti~s: and
WHEREAS, bills have been filed in the House and Senate (HB
2155 and SB 1040, respective ly 1 which, i f pas~ed,
would allow citi~s to be more fairly compensated
for the use of th~ir properties and rights-ai-way;
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Sch t'R 1z..
TEXAS:
I.
That the City Council hereby strongly urges th~ Texas
Legislature to amend Section 192.025(b) of the Texas Tax Code
to allow Texas cities and eowns to charge a fee for th~ use
of city streets, alleys, or public ways by d public utility
up to five percent (5%) of the gross. receipts of the public
utility for the sale of gas, electric or watt;:r within the
city.
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II.
That the City Council urges the Texas Legislature to
pass either HB 2155 or SB 1040 relating to this issue.
III.
That this resolution shall be forwarded to the Governor,
Lieutenant Governor, Speaker of' the Texas House of Represen-
tatives, and all members of the local State Legislative
delegation representing the city~
PRESENTED AND PASSED on this ~h" .d.L day of "fJ10->u>Jv
1989, by a vote of ~ ayes and .1:l.- nays at a f?"'1(JJ.ftfi.
meeting of 'Sc h ~ R 1:. , Texas.
Mayor
ATTEST: