G-05-03-24-11A1 - 3/24/2005ORDINANCE NO. 6- U5 -u -o) i - %/ R'
AN ORDINANCE GRANTING THE RIGHT, PRIVILEGE AND FRANCHISE
TO PEDERNALES ELECTRIC COOPERATIVE, INC., AND ITS
SUCCESSORS AND ASSIGNS, TO USE THE PUBLIC RIGHTS-OF-WAY OF
THE CITY OF ROUND ROCK, TEXAS FOR THE DISTRIBUTION OF
ELECTRIC POWER; PROVIDING FOR PERIOD OF GRANT; FOR
METHOD OF ACCEPTANCE; FOR CONSIDERATION; FOR
CONSTRUCTION AND RELOCATION OF SYSTEM FACILITIES; FOR
ASSIGNMENT; AND FOR REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, Texas Utility Code § 33.008(a) provides that, "a municipality may impose on
an electric utility, transmission and distribution utility ... or electric cooperative that provides
distribution service within the municipality a reasonable charge as specified in Subsection (b) for
the use of a municipal street, alley, or public way to deliver electricity to a retail customer."; and
WHEREAS, Pedernales Electric Cooperative, Inc. wishes to use the City of Round Rock's
streets, alleys, and public ways to deliver electricity to retail customers; and
WHEREAS, the City of Round Rock wishes to grant Pedernales Electric Cooperative, Inc.
the right to use its streets, alleys, and public ways to deliver electricity to retail customers for a
reasonable charge; and
WHEREAS, the City of Round Rock finds that the charge provided in this Franchise
Agreement is reasonable and comparable to fees charged to other providers; Now Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
I.
Section 1. GRANT OF FRANCHISE.
That the CITY of ROUND ROCK, Texas (hereinafter referred to as "CITY"), subject to the
terms, conditions and provisions of this ordinance, does hereby grant to PEDERNALES ELECTRIC
COOPERATIVE, INC. (hereinafter referred to as the "COMPANY"), its successors and assigns,
the non-exclusive right, privilege and franchise to use the Public Rights -of -Way of the CITY as
provided herein for the distribution of electric power. This Franchise grants no other rights or
privileges to use the Public Rights -of -Way in the CITY except to distribute power in the CITY limits
of the CITY and no other use of the Public Rights -of -Way by the COMPANY is granted or implied.
Section 2. DEFINITIONS.
2.1 "COMPANY" shall mean PEDERNALES ELECTRIC COOPERATIVE, INC., a
Texas cooperative corporation, existing under and by virtue of the laws of the State of Texas, and
authorized to transact and transacting business in the State of Texas, together with its legal
(dPFDesNopc:ODMA/WORLDOX/&/WDOX'ORDWANCO50310 A I _WPD, yr
representatives, successors, lessees and assigns, and shall not mean any of its affiliates and
subsidiaries who shall have no right, privilege or franchise granted hereunder.
2.2 "Franchise" shall mean this Ordinance and all rights and obligations established
herein or as amended.
2.3 "Ordinance" shall mean this Ordinance No. G - 05- 03- . - 1 I A i .
2.4 "Public Rights -of -Way" shall mean streets, avenues, easements (other than private
easements obtained by the COMPANY), rights -of -ways, alleys and highways of the CITY and
beneath the surface thereof as they may now or hereafter may exist and as defined herein, but such
does not include bridges or other CITY infrastructure such as water, sewer, electric,
telecommunication and facilities and any conduit system owned, operated or controlled by CITY
in or on the Public Rights -of -Way.
2.5 "System" shall mean all poles, pole lines, towers, distribution lines, wires, guys,
cables, conduits and other desirable instrumentalities and appurtenances necessary for the operation
of the COMPANY'S distribution business.
2.6 "CITY" shall mean the CITY of ROUND ROCK, Texas, as constituted on the
effective date of this Ordinance or as may hereinafter be constituted.
Section 3. TERM OF FRANCHISE.
Upon the filing with the CITY by the COMPANY of the acceptance required hereunder, this
Franchise shall be in full force and effect beginning January 1, 2003 for a term of ten years, ending
December 31, 2012.
Section 4. ACCEPTANCE OF FRANCHISE.
The COMPANY shall have ten (10) days from and after the passage and approval of this
Ordinance to file its written acceptance thereof with the City Secretary in the form of Exhibit "A"
attached hereto.
Section 5. FRANCHISE FEE.
5.1 In consideration for (i) the rights and privileges herein granted, (ii) the administration
of this Franchise by the CITY, (iii) the temporary interference with the use of Public Rights -of -Way,
(iv) rental for the use ofthe Public Rights -of -Way to distribute electric power and (v) for other costs
and obligations undertaken by the CITY herein, the COMPANY agrees to pay to the CITY:
(a) before the Company implements customer choice, a franchise fee equal to the greater of
$8,750 per quarter or two percent (2.00%) of the gross receipts of the COMPANY for the retail
sale of electricity delivered within the CITY; and
(b) after the COMPANY implements customer choice, a franchise fee equal to $0.002788
for each kilowatt hour of electricity delivered to retail customers within the CITY, not to exceed the
amount or amounts prescribed by Section 33.008 of the Utilities Code.
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5.2 Such franchise fee payments described in section 5.1 begin in 2003 and shall be
calculated and paid to the CITY quarterly on or before the 15th day of January, April, July and
October, of each year of this Franchise. Nonetheless, no payments are due before thirty (30) days
from COMPANY's acceptance of this Franchise. Late payments shall accrue interest at six percent
(6.00%) per annum.
Section 6. AUDIT OF COMPANY'S RECORDS AND REPORTS.
6.1 Books of Account. The COMPANY shall keep complete and accurate books of
accounts and records of its business and operations under and in connection with this Franchise. To
the extent practicable, all such books of accounts and records shall be made available at the
COMPANY'S local office.
6.2 Access by CITY. The City Manager shall have access to all books of accounts and
records of the COMPANY to the extent said books of accounts and records relate to and will assist
the CITY in ascertaining the correctness of any and all payments or reports to the CITY. As to
compliance with the construction standards, the City Manager shall have access to the
COMPANY'S records relating to use of the Public Rights -of -Way by its System within the CITY,
and may examine its representatives with respect thereto. Access shall be given by COMPANY to
the City Manger at any time during regular business hours on ten (10) business days' prior written
notice.
6.3 Annual Report by COMPANY. The COMPANY shall file an annual report with
CITY evidencing the kilowatt hours delivered within the CITY to retail customers for the period
beginning January 1 and ending December 31 of each calendar year this Agreement is in place on
or before March 1" of each year.
6.4 Audits. The CITY may inspect COMPANY'S books of accounts relative to the
CITY at any time during regular business hours on ten (10) business days' prior written notice and
may audit the books from time to time. All records reasonably necessary for such audit shall be
made available by COMPANY at the COMPANY'S local office. COMPANY agrees to give its full
cooperation in any audit and shall provide complete responses to inquiries within thirty (30) days
of a written request. If the results of any audit indicate that COMPANY (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 three percent (3.00%) or less, then the CITY shall pay the costs of the audit.
If the results of the audit indicate the COMPANY underpaid the Franchise Fee by more than three
percent (3.00%), then COMPANY shall pay the reasonable costs of the audit. CITY agrees that any
audit shall be performed in good faith. If the results of the audit indicate that COMPANY underpaid
the Franchise Fee by more than three percent (3.00%), and in CITY's reasonable judgment, which
shall be exercised in good faith, determines that COMPANY is unable to produce contrary evidence
to satisfactorily demonstrate to CITY that the results of the audit are not accurate, then COMPANY
shall pay interest on the total amount of underpayment at an annualized interest rate of 8%, and
interest shall be calculated from the time the original amount is 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 an annualized
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interest rate of 12% on the entire amount from the date of invoice. Notwithstanding the above, if
COMPANY'S auditor disagrees with the CITY's determination that the additional amount due
exceeds three percent (3.00%), the CITY'S auditor and the COMPANY'S auditor shall choose a
neutral auditor who shall make a determination which is final and binding on both parties as to
whether the three percent (3.00%) amount was exceeded.
6.5 Confidentiality. The CITY agrees to hold in strict confidence any non-public
information or information marked proprietary or confidential that it learns from the COMPANY
to the extent permitted by law. CITY shall not be liable to the COMPANY for the release of any
information obtained as a result of an audit where the CITY is required to release that information
by law or court order.
Section 7. ANNEXATIONS BY THE CITY.
This Franchise shall extend to and include any and all territory which is annexed by the
CITY during the term of this Franchise. Within sixty (60) days from the effective date of any such
annexation, the COMPANY shall assure that any and all customers located within such annexed
territory be included and shown on its accounting system as being within the CITY. After such sixty
(60) day period, all customers accounts located within such annexed territory shall be subject to the
payment provisions specified in Section 5 of this Franchise.
Section 8. CONSTRUCTION.
8.1 Compliance with CITY Ordinances. The COMPANY shall be bound by all current
and future CITY ordinances that govern the placement, location and construction of facilities in the
CITY; and CITY ordinances that assist in the management of facilities placed in, on or over the
Public Rights -of -Way to the extent such are necessary to protect the public health, safety, or welfare,
and are adopted pursuant to the CITY'S police powers. The CITY shall in good faith provide the
COMPANY with a thirty (30) day notice prior to the consideration of any proposed ordinance that
binds the COMPANY. In the event that the thirty (30) day notice is not provided to the
COMPANY, through inadvertence or otherwise, such ordinance shall still be binding upon the
COMPANY.
8.2 Relocation of Facilities. In the event relocation is required by CITY of any of the
COMPANY'S electric utility wire, cable, or other facility within Public Rights -of -Way such
relocation shall be completed within 120 days, except in circumstances that require additional time
as reasonably determined by the CITY based upon information provided by the COMPANY. In the
event relocation is not completed in the time allowed due to action or inaction by the COMPANY,
the COMPANY shall defend the CITY against construction delay claims that may be asserted
against the CITY due to any delay arising from COMPANY's failure to timely relocate the facilities
and pay or reimburse the CITY for amounts reasonably paid pursuant to such claims.
8.3 CITY Inspection. The CITY retains the right to make reasonable visual, non-invasive
inspections of the System and on request of the City Manager from time to time, to require the
COMPANY to provide available records or data to demonstrate its current compliance with the
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terms of this Franchise. Said inspections shall be made during the COMPANY'S normal business
hours and shall not cause the COMPANY'S employees to work any hours that will cause the
COMPANY to pay overtime wages or salaries to employees necessary to fulfill the CITY's right to
said inspection.
8.4 Temporary Removal of Wires. COMPANY on the reasonable request of any person
shall remove or raise or lower its wires within the CITY temporarily to permit the moving of houses
or other bulky structures. The expense of such temporary removal, raising or lowering of wires shall
be paid by the benefited party or parties, and COMPANY may require such payment in advance.
COMPANY shall be given not less than seventy-two (72) hours advance notice to arrange for such
temporary wire changes. The clearance of wires above ground or rails within the CITY and also
underground work shall conform to the basic standards of the National Electrical Safety Code,
National Bureau of Standards, United States Department of Commerce, as promulgated at the time
of erection thereof.
8.5 Tree Trimming. The right, license, privilege and permission is hereby granted to
COMPANY, its successors and assigns, to trim trees upon and overhanging the streets, alleys,
sidewalks and public places of the CITY, as needed and at the COMPANY'S discretion so as to
prevent the branches of such trees from coming in contact with the wires or cables of COMPANY,
and when so ordered by the CITY, said trimming shall be done under the supervision and direction
of the City Manager or of any City official to whom said duties have been or may be delegated.
Section 9. INDEMNITY.
9.1 COMPANY shall indemnify and save harmless CITY and its officers, agents,
and employees (i) from and against all damages, costs, losses or expenses for the repair,
replacement, or restoration of CITY's property, equipment materials, structures, and facilities
which are damaged, destroyed, or found to be defective as a result of COMPANY's acts or
omissions, and (ii) from all suits, actions, losses, damages, claims, or liability of any character,
type, or description, including without limiting the generality of the foregoing all expenses of
litigation, court costs, and attorney's fees for injury or death to any person, or injury to any
property, received or sustained by any person or persons or property, arising out of, or
occasioned by, the negligent acts of COMPANY or its agents or employees, in the execution
or performance of this Franchise. COMPANY further agrees to defend, at its own expense,
and on behalf of CITY, any claim or litigation brought in connection with any such injury,
death or damage. COMPANY shall have the right to control the defense and settlement of any
such claim. This indemnity provision shall not apply to any liability resulting from the
negligence of CITY, its officers, employees, agents, contractors, or subcontractors, as provided
in subsection 9.3 below.
9.2 Upon commencement of any actions, losses, damages, claims, or liability,
proceeding at law or in equity against the CITY relating to or covering any matter covered by
this indemnity, to indemnify and hold the CITY harmless, or to pay said final judgment and
costs, as the case may be, the CITY shall give the COMPANY reasonable notice of such
actions, losses, damages, claims, or liability. The COMPANY shall promptly provide a defense
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to any such actions, losses, damages, claims, or liability, including any appellate proceedings
brought in connection therewith, and pay as aforesaid, any final judgment or judgments that
may be rendered against the CITY by reason of such damage suit. Upon failure of the
COMPANY to comply with the provisions of this Ordinance, after reasonable notice to the
COMPANY, CITY shall have the right to defend the same and in addition to being reimbursed
for any such judgment that may be rendered against CITY, together with all court costs
incurred therein, the COMPANY shall promptly reimburse CITY for attorney's fees,
including those employed by CITY in such case or cases, as well as all expenses incurred by
CITY by reason of undertaking the defense of such suit or suits, whether such suit or suits are
successfully defended, settled, compromised, or fully adjudicated against CITY.
9.3 The indemnity provided for in this section shall not apply to any liability
determined by a court of competent jurisdiction to have resulted from the negligence or
intentional acts or omissions of the CITY, its officers, agents and employees. In the event of
joint and concurrent negligence or fault of both the COMPANY and the CITY, responsibility
and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the
State of Texas without, however, waiving 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 joint and concurrent negligence or fault of both the COMPANY and
the CITY, responsibility for all costs of defense shall be apportioned between the CITY and
COMPANY based upon the comparative fault of each.
9.4 The provisions of this indemnity are solely for the benefit of CITY and are not
intended to create or grant any rights, contractual or otherwise, to any other person or entity.
Section 10. TRANSFERS AND ASSIGNMENT.
10.1 No transfer of this Franchise shall be effective unless it is in writing, in duplicate,
signed by the transferor and by the transferee filed with the City Secretary, the transferee pays a
franchise transfer fee of Five Hundred Dollars ($500.00) to the CITY and it is approved by the City
Council. Such approval shall not be unreasonably withheld. The fees for subsequent years shall be
payable by the transferee under the same conditions as they had been for the transferor. Approval
by the City Council of such transfer will extinguish COMPANY's rights and obligations pursuant
to this Franchise and delegate them to the transferee.
10.2 No assignment in law or otherwise shall be effective until the assignee has filed with
the City Manager an instrument, duly executed, reciting the fact of such assignment, accepting the
terms of this Franchise, and agreeing to comply with all of the provisions of this Franchise
substantially in the form of Exhibit "A". A mortgage or other pledge of assets in a bona fide lending
transaction shall not be considered an assignment for the purposes of this section.
Section 11. FORFEITURE AND TERMINATION.
11.1 In addition to all other rights and powers retained by the CITY under this Franchise or
otherwise, the CITY reserves the right to forfeit and terminate this Franchise and all of the
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COMPANY'S rights and privileges hereunder in the event of a material breach of terms and conditions
hereof, subject to reasonable notice and opportunity to cure as provided in Section 11.2 below.
11.2 If the COMPANY is in violation of this Franchise and such violation is of a curable
nature, the City Manager or designee shall notify the COMPANY in writing, setting forth the nature
of such violation. Within twenty-one (21) days of receipt of such notice, the COMPANY shall (i)
respond in writing that the violation has been cured, (ii) provide a written cure plan, subject to
review and approval by the City Manager, or (iii) provide a written explanation with documentation
to support that the alleged violation did not occur.
11.3 Notwithstanding Section 11.2, the COMPANY shall be allowed thirty (30) days after
the CITY's delivery of the written notice described in Section 11.2 to cure a curable violation. If
the nature of such violation is such that it cannot be fully cured within thirty (30) days due to
circumstances not under the COMPANY'S control, the period of time in which the COMPANY
must cure the violation may be extended by the City Manager in writing for such additional time
reasonably necessary to complete the cure, provided that (i) the COMPANY has begun promptly
to cure, and (ii) the COMPANY is diligently pursuing its efforts to cure in the City Manager's
reasonable judgment.
11.4 At the COMPANY'S request, the CITY shall afford the COMPANY an opportunity
to show that a violation has not occurred, through a hearing before the City Council. Such hearing
shall take place on or before the next City Council meeting scheduled within thirty (30) days after
the CITY's receipt of the COMPANY request. If the City Council determines that a violation has
occurred, the COMPANY shall pay all of the CITY's reasonable expenses associated with the
hearing. After the conclusion of the hearing either party may seek any and all remedies to which
it may be entitled at law or in equity.
11.5 Material breaches of this Franchise specifically include, but are not limited to, failing
to comply with the requirements set forth in Sections 5, 6, 8 and 9.
11.6 The preceding conditions provided in subsection 11.5 shall not constitute a material
breach if the violation occurs without the fault of the COMPANY or occurs as a result of
circumstances beyond its control. The COMPANY shall not be excused from performance of any
of its obligations under this Franchise by mere economic hardship, nor misfeasance or malfeasance
of its directors, managers, officers or employees.
11.7 A termination shall be declared only by a written decision of the City Council after
a public hearing before the City Council, which shall afford the COMPANY full opportunity to be
heard and to respond to any notice of grounds of termination. The foregoing sentence, however,
shall not be construed as requiring any additional hearing after the COMPANY has had such
proceeding pursuant to Section 11.4 and after the COMPANY'S failure to timely cure any default
within a time period which may have been granted by the City Council at the hearing held pursuant
to Section 11.4 above. All of the CITY's notice requirements shall be met by providing written
notice to the COMPANY at least thirty (30) days before a public hearing concerning the proposed
termination of this Franchise. Such notice shall specifically state the CITY's alleged grounds for
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termination.
11.8 The City Council, after public hearing, and upon finding the existence of grounds to
terminate, may either declare this Franchise terminated, excuse the breach upon a showing by the
COMPANY of mitigating circumstances or good cause for the existence of such grounds, or grant
additional time for the COMPANY to cure its default.
11.9 Neither the COMPANY'S acceptance of this Franchise, the COMPANY'S
appearance before the City Council at any public hearing concerning proposed termination of this
Franchise nor any action taken by the City Council as a result of such public hearing, including a
declaration of termination or a finding of grounds to terminate, shall be construed to waive or
otherwise affect the COMPANY'S right to seek judicial determination of the rights and
responsibilities of the parties under this Franchise.
Section 12. FORECLOSURE, RECEIVERSHIP, AND BANKRUPTCY.
The COMPANY shall notify the CITY within thirty (30) days after the appointment of a
receiver or trustee to take over and conduct the business of the COMPANY, whether in receivership,
reorganization, bankruptcy, or other action or proceeding, whether voluntary or involuntary, such
notice to include where applicable the cause number and court involved.
Section 13. ENFORCEMENT.
The City Attorney or his/her designee shall have the right to enforce all legal rights and
obligations under this Ordinance without further authorization. The COMPANY shall provide to
the City Attorney or his/her designee documents and records reasonably necessary to determine the
COMPANY'S compliance with this Franchise, with the exception of those documents that are
privileged or confidential by federal or state law or regulation or any documents that would be
privileged under the Texas Rules of Civil Procedure.
Section 14. NONEXCLUSIVE FRANCHISE.
Nothing contained in this Franchise shall be construed as conferring upon the COMPANY
any exclusive rights or privileges of any nature whatsoever.
Section 15. ENTIRE AGREEMENT.
This Franchise contains all of the agreements of the parties with respect to any matter
covered or mentioned in this Franchise and no prior or contemporaneous agreements or
understandings pertaining to any such matters shall be effective for any purpose.
Section 16. SEVERABILITY.
If any section, subsection, sentence, clause, phrase, or portion of this Franchise is for any
8
reason held invalid or unconstitutional by any court or administrative agency of competent
jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such
holding shall not affect the validity of the remaining portions thereof.
Section 17. NON -WAIVER.
Failure of the CITY to declare, or delay in taking any action in connection with, any breach
or default immediately upon the occurrence thereof shall not waive such breach or default, but the
CITY shall have the right to declare any such breach or default at any time. Failure of the CITY to
declare one breach or default does not act as a waiver of the CITY's rights to declare another breach
or default.
Section 18. GOVERNING LAW; VENUE.
This Ordinance shall be governed by and construed in accordance with the laws of the State
of Texas. The venue and jurisdiction over any dispute related to this Franchise shall be with the
Texas State District Court in Williamson County, Texas.
II.
A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly
repealed.
B. The invalidity of any section or provision of this ordinance shall not invalidate other
sections or provisions thereof.
C. The City Council hereby finds and declares that written notice of the date, hour, place
and subject of the meeting at which this Ordinance was adopted was posted and that such meeting
was open to the public as required by law at all times during which this Ordinance and the subject
matter hereof were discussed, considered and formally acted upon, all as required by the Open
Meetings Act, Chapter 551, Texas Government Code, as amended. q ,,
READ and APPROVED on first reading this the )0 day of E7) v ,c/ 1 , 2005. �,, ,, �,
READ, APPROVED and ADOPTED on second reading this the��day of t Yw,Ut/ 1 )
2005.
ATTES
41.
A MA +r - L, Mayor,
City of Round Rock, Texas
CHRISTINE R. MARTINEZ, City Secretary
9
APPROVED AS TO FORM:
STEPHAN L. SHEETS, CITY Attorney
EXHIBIT "A"
Acceptance
(In accordance with Section 4 or Section 10 on Transfers)
TO THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF ROUND ROCK:
'[Name of Company or transferee] [, on behalf of itself, its successors
and assigns] hereby fully accepts CITY of ROUND ROCK
Ordinance No. - and expressly agrees to be bound by
all of its terms and provisions, and to fully observe and fully perform
all limitations and obligations contained in such Ordinance.
COMPANY further certifies to the CITY that all of the COMPANY's
information filed with the CITY in connection with the issuance of
such Ordinance is true, correct and complete.'
ATTEST:
BY:
[NAME OF COMPANY OR TRANSFEREE]
Secretary [Title]
Dated the day of , A.D., 2005.
THE STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on , 2005, by
, the of a
corporation, on behalf of said corporation.
NOTARY PUBLIC IN AND FOR
THE STATE OF TEXAS
My Commission expires: Printed Name:
1
THE STATE OF TEXAS
COUNTY OF WILLIAMSON
I, , the duly appointed, qualified acting City Secretary of the CITY
of ROUND ROCK, Texas, hereby certify that the above and foregoing Acceptance was received and
filed in the office of the City Secretary of the CITY of ROUND ROCK on the day of
, 2005.
Executed under my hand and the official seal of the CITY of ROUND ROCK, Texas, at said
CITY, this day of , A.D. 2005.
2
CHRISTINE R. MARTINEZ
CITY SECRETARY
CITY OF ROUND ROCK, TEXAS
CITY OF ROUND ROCK
LEGEND
If -1 EEC,' OF ROUND ROCK
I PEC TXU;ONCOR
DATE: March 17, 2005
SUBJECT: City Council Meeting - March 24, 2005
ITEM: *11.A.1. Consider an ordinance authorizing the Mayor to execute a
franchise agreement with Pedernales Electric Cooperative (PEC).
(Second Reading)
Department: Administration
Staff Person: David Kautz, Assistant City Manager/Chief Financial Officer
Justification:
Staff has been negotiating a Franchise Agreement with Pedernales Electric Cooperative
and recommends approval of an agreement containing the terms that are listed below.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: N/A
Background Information:
PEC has been serving electric power to a small area in western Round Rock (a portion of
the Mayfield Ranch subdivision) since 2003. Staff has been negotiating a Franchise
Agreement with the company over this period of time and recommends the following
terms:
1. Term - January 1, 2003 through December 31, 2012 (ten years).
2. The agreement applies to electric power delivered to customers within the City.
3. Franchise Fee - $35,000 per year or 2% of gross receipts, whichever is greater; If
company implements Customer Choice (i.e., participates in deregulation), the fee
changes to $0.002788 per kWh delivered.
4. Franchise Fee paid quarterly
5. The agreement and fee schedule applies to any additional area annexed by the
City, which is in the PEC service area.
The currently known service area has approximately 250 residential accounts and may
serve between 700 and 800 accounts.
Public Comment: N/A