Ordinance 14-F-18 - CPS FranchiseORDINANCE NO, 14 -F -18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING ORDINANCE NO. 14 -F -18, CITY PUBLIC SERVICE (CPS
ENERGY); PROVIDING FOR ADOPTION; 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 -04 and Ordinance 14 -F -01, 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. 14-F -01 is in the best interests of the citizens of the City.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCH Or THE CITY OF
SCHF,RTZ, TEXAS:
I,
AMENDMENTS
Ordinance No. 14 -F -01 is hereby amended to incorporate an Addendum to Ordinance No.
14-F -01 that reflects the following changes and is attached in Exhibit 1:
SECTION 1. No revision is made to this Section.
SECTION 2. Payment for Street- Rental. CPS Energy shall make it payment for street rental
to the City in the amount of four and one -half percent (4.5 %) of CI'S 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, oil
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 yea.
2.2 If at any time within the term of this franchise the City passes an ordinance increasing
the franchise fee from 4.5% to 5,5 %, CPS Energy agrees to execute documents necessary to
accept this increased fee. Payment of the additional 1% shall be treated by CPS Energy as a
City - specific fee and will be identified separately as a surcharge on bills of customers
residing within the City limits. Payment to the City of this additional street rental fee will
be made consistent with the procedure described in Section 2. 1, beginning no sooner than
the following quarter, as soon as the implemented surcharge is reflected on customer bills.
SECTION 3. Limitation on Assessments. No revision is made to this Section.
SECTION 4. Audits. No revision is made to this Section.
SECTION S. Construction. Operation and Maintenance of Facilities. No revision is made to
this Section.
SECTION 6. Civic Improvements. No revision is made to this Section.
SECTION 7. Use of Pole Space, No revision is an 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 indeninity. 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 the
first clay of the month of the beginning of the following business quarter upon adoption by
the City and receipt of documentation by CPS Energy.
SECTION 13. I-leadines. 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.
Il.
The City Manager is authorized to enter into and execute the Addendum with CPS Energy to
Ordinance 14- I' -01.
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 Ordauance 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 Gth day of May, 2014.
PASSED, APPROVED and ADOPTED ON SECOND READING, the June 10, day of Month, 2014.
ATTEST:
rend�Ci t3 Secretau Y
SIGNED:
ucl , el Carpenter, Mayor
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July 1, 2014
The Honorable Michael Carpenter
Mayor
City of Schertz
1400 Schertz Pkwy.
Schertz, TX 78154
Dear Mayor Carpenter,
Thank you for returning the executed copy of the City of Schertz Ordinance 14 -F -18,
granting an electric and gas franchise to CPS Energy. Enclosed, please find a copy of
that agreement for your records attached to an official acceptance of franchise
agreement from CPS Energy.
Our Board and staff appreciate the cooperation and confidence of your City Council in
CPS Energy. CPS Energy continues to pledge to you and your citizens (our
ratepayers), high quality energy services, produced in an environmentally friendly
manner, at a reasonable cost.
If we can be of further service to you, please contact your CPS Energy representative,
Roland Hinojosa, at 210 - 353 -2747.
Sincerely,
Paula Gold- Williams
EVP & Chief Financial Officer
145 Navarro P.O. Box 1771 San Antonio,Texas 78296
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ACCEPTANCE OF FRANCHISE AGREEMENT
GRANTED BY
THE CITY OF SCHERTZ, TEXAS
The franchise agreement adopted, by Ordinance 14 -F -18 by the governing body of the
City of Schertz, Texas on the 6th day of May, 2014, is hereby accepted by the City of
San Antonio acting by and through the City Public Service Board, as provided in Section
1 of said ordinance.
Signed and delivered on this 1St day of July, 2014.
CITY PUBLIC SERVICE BOARD (CPS Energy)
BY 4 &�
Paula Gold- Williams
EVP & Chief Financial Officer
145 Navarro P.O. Box 1771 San Antonio,Texas 78296