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<br />permit the moving of vessels, houses or other bulky structures. The expense of such
<br />temporary removal, raising or lowering of wires shall be paid by the benefited party or
<br />parties, and Company may require such payment in advance, being without obligation
<br />to remove, raise, or lower its wires until such payment has been made. Company shall
<br />be given adequate, and in no event less than forty-eight (48) hours, advance notice to
<br />arrange for such temporary wire changes.
<br />
<br />Section 10. Company shall construct, operate, and maintain its transmission
<br />and distribution facilities in substantial accordance with Company's own Service
<br />Standards and the National Electrical Safety Code ("NESC"). Company shall determine
<br />the specific location and the method of construction and types of materials used in
<br />building, maintaining, and operating Company's transmission and distribution facilities.
<br />City shall require its employees and contractors performing work for the benefit of City
<br />to comply with all applicable laws, statutes, codes and standards (including, without
<br />limitation, Section 752 of the Texas Health and Safety Code, as the same may be
<br />amended or replaced, and the NESC) when working near Company's System and to
<br />report as soon as practicable any damage done to Company's System. Company also
<br />agrees to require its employees and contractors performing work for the benefit of City
<br />to comply with all applicable laws, statutes, codes and standards (including, without
<br />limitation, Section 752 of the Texas Health and Safety Code, as the same may be
<br />amended or replaced, and the NESC) when working near City's facilities and to report
<br />as soon as practicable any damage done to City's facilities. Company shall relocate
<br />facilities within P.ublic Rights-of-Way at Company's own expense, exclusive of street
<br />lighting and facilities installed for service directly to City, to accommodate Public Works
<br />Improvement Projects, including, but not limited to street widening, change of grade,
<br />water, sewer, or drainage upgrades, construction or reconstruction projects and minor
<br />relocation of traffic lanes. City shall bear the costs of all relocations of street lighting
<br />and facilities installed for service directly to City and of any relocation of other facilities
<br />requested by City for reasons other than Public Works Improvement Projects. Except in
<br />the event of an emergency, City shall give Company at least seventy-two (72) hours
<br />notice when City or City's contractor is requesting the bracing of Company's poles.
<br />Company shall pay for the bracing to accommodate Public Works Improvement
<br />Projects, including but not limited to street widening, change of grade, water, sewer, or
<br />drainage upgrades, construction or reconstruction projects and minor relocation of traffic
<br />lanes.
<br />
<br />Section 11. In consideration for the rights and privileges herein granted,
<br />Company agrees to pay to City, beginning on the Effective Date and continuing
<br />throughout the remaining term of the Prior Franchise and the additional thirty (30) year
<br />term of this Franchise provided for in Section 4, above, an annual franchise fee
<br />(referred to herein as "Annual Franchise Fee"), subject to an Annual Adjustment Factor
<br />as set forth below. Except as set forth in Section 15, payment of the Annual Franchise
<br />Fee shall be the total compensation payable to City in consideration for the right,
<br />privilege and franchise herein conferred for Company's use of the Public Rights-of-Way
<br />to construct, operate, use and maintain its System for the provision of electric
<br />transmission and distribution service and its right to use, license, or exploit its System
<br />for Other Services.
<br />
<br />The Annual Franchise Fee shall be calculated as follows:
<br />
<br />HOU03:1055752.7
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