G-01-11-20-12C1 - 11/20/2001ORDINANCE NO.
AN ORDINANCE RELATING TO ELECTRIC FRANCHISE FEE
PAYMENTS AS CALCULATED AND PAID UNDER TEXAS UTILITY
CODE, §33.008 FOR EXISTING FRANCHISEES; CONTAINING
FINDINGS AND OTHER PROVISIONS RELATING TO THE
FOREGOING SUBJECT; PROVIDING AN EFFECTIVE DATE; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Round Rock ( "City") on August 13, 1963,
by Ordinance, entered in a franchise ("Franchise") with Texas Power
& Light Company ("Electric Utility") which granted them the right
to use the public rights-of-way to deliver electricity in the City;
and
WHEREAS, Section 5 of the Franchise provides that the City
may collect a franchise fee from the electric utility for use of
the public rights-of-way in the City and the City has collected
such a fee since the Franchise was entered into; and
WHEREAS, Texas Power & Light Company subsequently changed its
name to Texas Utilities Electric; and
WHEREAS, the City by Ordinance No. G -93-05-27-9D dated May
27, 1993, amended the aforesaid franchise ordinance; and
WHEREAS, Texas Utility Code § 33.008(a) provides that, "a
municipality may impose on an electric utility 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
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WHEREAS, Texas Utility Code § 33.008(b) provides that if a
municipality collected a charge or fee for a franchise to use a
municipal street, alley, or public way before December 31, 2001,
the municipality, after December 31, 2001 is entitled to collect
from each electric utility that uses the municipality's streets,
alleys, or public ways to provide distribution service a charge
based on each kilowatt hour of electricity delivered by the utility
to each retail customer whose consuming facility's point of
delivery is located within the municipality's boundaries; and
WHEREAS, Texas Utility Code § 33.008(b) further provides that
the charge imposed shall be equal to the total electric franchise
fee revenue due the municipality from electric utilities for
calendar year 1998 divided by the total kilowatt hours delivered
during 1998 by the electric utility to retail customers whose
consuming facilities' points of delivery were located within the
municipality's boundaries ("KWH Charge"); and
WHEREAS, § 33.008(b) further provides the compensation a
municipality may collect from each electric utility providing
distribution service shall be equal to the charge per kilowatt hour
determined for 1998 multiplied times the number of kilowatt hours
delivered within the municipality's boundaries; and
WHEREAS, the City Council finds and determines that the City
did collect a franchise fee before December 31, 2001 and desires to
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impose and collect the charge authorized of Texas Utility Code §
33.008 from the Electric Utility in the City; Now Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS THAT:
1. The findings contained in the preamble of this Ordinance
are determined to be true and correct and are hereby adopted.
2. Pursuant to Texas Utility Code § 33.008(a) and §
33.008(b), the City imposes on the Electric Utility that provides
distribution service within the municipalities' boundaries, a KWH
charge as authorized by Texas Utility Code § 33.008 Such charge
shall be paid annually as is provided for in the Franchise.
3. Upon payment of the per kilowatt hour charge, as
authorized by the Texas Utility Code, § 33.008 the Electric Utility
shall also file a report with the City evidencing the kilowatt
hours delivered within the City during the applicable period, and
other reasonable information as requested in writing by the City to
verify the accuracy of that Report.
4. Violations of Ordinance. It shall be a violation of this
Ordinance for the Franchisee to knowingly make a material
misrepresentation of any information required to be reported under
this ordinance.
5. Severability. If any section, subsection, sentence,
clause, phrase, or portion of this ordinance is for any reason held
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invalid or unconstitutional by any court or administrative agency
of competent jurisdiction, such portion shall be deemed a separate,
istinct, and independent provision and such holding shall not
affect the validity of the remaining portions thereof.
6. Effective date. This Ordinance shall take effect
immediately upon its final passage, with the KWH charge beginning
to accrue as of 12:01 AM, January 1, 2002.
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.
READ and APPROVED on first reading this the
day of liaLti-OLI/AJ , 2001.
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READ, APPROVED and ADOPTED on second reading this the
(1)011\jday of LilbaLJYLLOYU, 2001.
ROBERT A. STLUKA Mayor
City of Round Rock, Texas
ATTEST:
CHRISTINE R. MARTINEZ, City Secr ary
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DATE: November 15, 2001
SUBJECT: City Council Meeting — November 20, 2001
ITEM: *12.C.1. Consider an ordinance relating to electric franchise fee
payments as calculated and paid under Texas Utility Code,
§33.008 for existing franchisees. (Second Reading)
Resource: David Kautz, Finance Director
Steve Sheets, City Attorney
History: The City collects a franchise fee from TXU Electric (TXUE) for use
of the public rights-of-way in the City. Currently, the franchise fee is
based upon 4% of TXUE gross receipts from the retail sale of electric
power sold within the City. Pursuant to new legislation, beginning in
January 2002, the fee will be based upon the number of kilowatt-hours
delivered within the City's boundaries.
Funding:
Cost:
Source of Funds:
Outside Resources:
Impact/Benefit:
Public Comment:
Sponsor:
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Adoption of this ordinance formally recognizes the new fee
methodology and applies it to the franchise agreement with TXUE.
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