Item 10A CPS Franchise Ordinance ORDORDINANCE NO. 14-F-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING ORDINANCE NO. 04-F-09, CITY PUBLIC SERVICE (CPS
ENERGY); PROVIDING FOR ADOPTION; THERETO; 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, 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.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS:
I.
AMENDMENTS
Ordinance No. 04-F-09 is hereby amended to incorporate an Addendum to Ordinance No.
04-F-09 that reflects the following changes and is attached in Exhibit 1:
SECTION 1 DESCRIPTION. This agreement hereby grants the City of San Antonio,
acting by and through the City Public Service Board, (CPS Energy), a twenty (20) year
franchise commencing on March 13, 2014 for transmission, distribution and sale of
electricity and gas within CPS Energy's certificated service area and within the City Schertz,
Texas (Franchise Agreement). CPS Energy may construct, operate and maintain in, upon,
over, under, and across the present and future streets, alleys, public ways and places
within the City of Schertz, Texas (City) all the facilities CPS Energy deems reasonably
necessary for the rendition of safe, reliable and economical electric and gas service (CPS
Energy Facilities).
SECTION 2. Payment for Street Rental. CPS Energy shall make a payment for street rental
to the City in the amount of four percent (4%) of CPS Energy's gross receipts from the sale
of electricity and gas within the City. "Gross receipts" excludes uncollectibles. The
payment for street rental shall be treated by CPS Energy as a system-wide cost of service,
and shall not be identified separately on the customer bill.
2.1. The payment for street rental will reflect CPS Energy's gross receipts for such sales, on a
quarterly basis and will be due to the City within thirty (30) days after the close of each
quarter in CPS Energy's fiscal year.
SECTION 3. Limitation on Assessments. No revision is made to this Section.
SECTION 4. Audits. No revision is made to this Section.
SECTION 5. Construction. Operation and Maintenance of Facilities. No revision is made to
this Section.
5.1 No revision is made to this Subsection.
5.2 No revision is made to this Subsection.
SECTION 6. Civic Improvements. No revision is made to this Section.
SECTION 7. Use of Pole Space. No revision is made to this Section.
SECTION 8. Rate Schedules. No revision is made to this Section.
SECTION 9. Furnishing of Information. No revision is made to this Section.
SECTION 10. Uniform Franchise Benefits. No revision is made to this Section.
SECTION 11. Limited indemnity. No revision is made to this Section.
SECTION 12. Effective Date. This Franchise Agreement shall become effective upon its
adoption by the City in the form authorized by the board of CPS Energy. It shall supersede
and take precedence over inconsistent ordinances, resolutions, or regulations hereafter or
heretofore passed by the City. The payments provided for in SECTION 2 shall be effective
for CPS Energy's gross receipts from electric and gas sales within the City commencing
March 13, 2014, if this Franchise Agreement is adopted by the City on or before
February 28, 2014, or otherwise shall be effective for CPS Energy's gross receipts from
electric and gas sales within the City commencing the first day of the month following
adoption by the City.
SECTION 13. Headings. No revision is made to this Section.
SECTION 14. Continuation of Agreement. No revision is made to this Section.
SECTION 15. Assignment. No revision is made to this Section.
Exhibit A: Confidentiality Agreement for an Inter-governmental Transfer of Information. No
revision is made to this Exhibit.
II.
The City Manager is authorized to enter into and execute the Addendum with CPS Energy to
Ordinance 04-F-09.
III.
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.
IV.
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 ________ day of
January, 2014.
SIGNED:
__________________________
ATTEST: Michael Carpenter, Mayor
_________________________
Brenda Dennis, City Secretary