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HomeMy WebLinkAboutO-1958-532~ ~ AN ORDINANCE GRANTING TO HOUSTON LIGHTING & POWER COMPANY, ITS SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVI- LEGE AND FRANCHISE TO CONDUCT WITHIN THE CITY AN ELECTRICAL LIGHTING AND POWER BUSINESS AND TO ERECT, CONSTRUCT, MAINTAIN, OPERATE, USE, EXTEND, REMOVE, REPLACE AND REPAIR IN, UNDER, UPON, OVER, ACROSS AND ALONG ANY AND ALL OF THE PRESENT AND FUTURE PUBLIC ROADS, HIGHWAYS, STREETS, LANES AND ALLEYS OF THE CITY AND OVER AND ACROSS ANY STREAM OR STREAMS, BRIDGE OR BRIDGES, NOW OR HEREAFTER OWNED OR CON- TROLLED BY IT A SYSTEM OF POLES, POLE LINES, TOWERS, TRANSMISSION LINES, WIRES, GUYS, CABLES, CONDUITS AND OTHER DESIRABLE INSTRUMENTALITIES AND APPURTENANCES (INCLUDING TELEGRAPH AND TELEPHONE POLES AND WIRES FOR COMPANY'S OWN USE), NECESSARY OR PROPER FOR THE SUPPLY AND DISTRIBUTION OF ELECTRICITY FOR LIGHT, POWER AND HEAT, AND FOR ANY OTHER PURPOSE FOR WHICH ELECTRICITY MAY BE USED, TO THE MUNICIPALITY AND IN- HABITANTS OF THE MUNICIPALITY, OR ANY OTHER PERSON OR PERSONS FOR A PERIOD OF FIFTY (50) YEARS; REGU- LATING THE USE OF STREETS BY THE COMPANY AND THE REPAIR AND RESTORATION OF STREETS DISTURBED BY CON- STRUCTION; CONTAINING A CONTRACT BY THE COMPANY TO FURNISH FIRST-CLASS SERVICE AND THE GRADE OF SERVICE TO ITS CUSTOMERS AS PROVIDED BY ITS RATE SCHEDULES EXCEPT UNDER CONDITIONS BEYOND THE COMPANY'S CONTROL; PROVIDING FOR THE TEMPORARY REMOVAL, RAISING AND LOWERING OF WIRES AND OTHER APPURTENANCES AND ESTAB- LISHING STANDARDS FOR THEIR CONSTRUCTION; PROVIDING FOR COMPENSATION TO BE PAID TO THE CITY; PROVIDING FOR USE BY THE CITY FOR ITS TRAFFIC SIGNAL LIGHT SYSTEM AND ITS POLICE AND FIRE ALARM SYSTEM OF CER- TAIN 4JIRE AND CONDTJIT SPACE; PROVIDING THAT THIS FRANCHISE SHALL NOT BE EXCLUSIVE; PROVIDING THE COMPANY'S OBLIGATION TO FURNISH EFFICIENT SERVICE AT REASONABLE RATES; PROVIDING A SEVERABILITY CLAUSE; RESERVING ALL POWERS OF REGULATION; PROVIDING FOR INDEMNITY BY THE COMPANY TO THE CITY; MAKING PROVI- SIONS WITH RESPECT TO MORTGAGES; MAKING MISCELLAN- EOUS PROVISIONS RELATIVE TO THIS GRANT OF FRANCHISE; REPEALING ALL PREVIOUS ELECTRICAL LIGHTING AND POW- ER FRANCHISE ORDINANCES; PROVIDING FOR ACCEPTANCE BY THE COMPANY; AND PROVIDING AN EFFECTIVE DATE. * ~ ~ ~ ~ ~ ~ BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LAPORTE: Section 1. That, subject to the terms, conditions and provisions of this ordinance, the City of LaPorte, Texas, hereinafter referred to as "City", does hereby grant unto Houston Lighting & Power Company, hereinafter called "Company", its successors and assigns, the right, privile ge and franchise to conduct within the boundaries of the City, as such boundaries now exist or may hereafter be extended, ~~- -~ ~, ~~ qg~ ~ e-P~ Nev. ~' / • an electrical lighting and power business and to erect, cor~- . struct, maintain, operate, use, extend, remove, replace and repair, in, under, upon, over, across acid along any and all of the p~~esent and future public roads, highways, streets, lanes and alleys owned or controlled by the City, and over and across any stream or streams, bridge or bridges, now or hereafter owned or controlled by City, a system of poles, pole lines, towers, transmission lines, wires, guys, con- duits, cables and other desirable instrumentalities and appurtenances (including telegraph and telephone poles and wires for use of Company), necessary or proper for the pur- • pose of carrying, conducting, supplying, distributing and selling to the municipality and the inhabitants of said City or other person or persons, firms or corporations, elec- tricity for light, power and heat, and for any other purpose for which electricity may be used; to carry, conduct, supply and distribute electricity by means of said poles, pole lines, towers, transmission lines, conduits, cables or other in- strumentalities, and to sell same to said City and inhabi- tants thereof, or to any other person or persons, firms or corporations. Section 2. Upon the filing with the City by the Company of the acceptance required hereunder, this fran- chase shall be in full force and effect for a term and perioa of fifty (50) years from and after the ,~~ day of , 19,~. Section 3. All poles erected by the Company pur- suant to the authority herein granted shall be of sound material and reasonably straight, and shall be so set that they will not interfere with the flow of water in any gutter or drain, and so that the same will interfere as little as practicable with the ordinary travel, on the streets, ~~ ~~ 2. • • sidewalks, or other public ways. Within the streets or C. other public ways of the City, the location and route of all poles, stubs, guys, anchors, lines, conduits and cables placed and constructed and to be placed and constructed by Company ire the construction and maintenance of its electrical lighting and power system in the City, shall be subject to the reasonable and proper regulation, control and direction of the City, or of any City official to whom such duties have been or may be duly delegated, which regulation and control shall include, but not by way of limitation, the right to require in writing the relocation of Company facilities, exclusive of street lighting and facilities installed for service directly to the City, at Company~s cost within the streets or other public ways whenever such shall be reason- ably necessary on account of the widening, change of grade, relocation, or other City construction within such streets or public ways. Section ~. The surface of any public road, high- • C~ way, streets, lanes, alleys, or other public place disturbed by Company in erecting, constructing, maintaining, operat- ing, using, extending, removing, replacing or repairing its electrical lighting and power system shall be restored immediately after the completion of the work to as good a condition as before the commencement of the work and maintained to the satisfaction of the City, or of any City official to whom such duties have been or may be duly dele- gated, for one year from the date the surface of said public road, highway, street, lane, alley, or other public place is broken for such construction, maintenance or removal work, after which time responsibility for the maintenance shall become the duty of the City. No public road, highway, street, 3• ~ ~ • lane, alley, or other public place shall be encumbered by construction, maintenance or removal work by Company for a longer period than shall be necessary to execute such work, Section 5. The service furnished hereunder to the City and its inhabitants shall be first-class in all respects, considering all circumstances, and Company shall furnish the grade of service to its customers as provided by its rate schedules and shall maintain its system in reasonable operating condition during the continuance of this agreement. An exception to this requirement is auto- matically in effect when due to shortages in materials, • su lies and e ui ment be and the control of the Com an pp q P y p y and when due to fires, strikes, riots, storms, floods, war and other casualties, and when due to Governmental regula- tions, limitations and restrictions as to the use and avail- ability of materials, supplies and equipment and as to the use of the services, and when due to unforeseen. and unusual demands for service. In any of which events the Company shall do all things reasonably within its power to restore normal service. Section 6. The Company on the written request of any person shall remove or raise or lower its wires tempo- rarily to permit construction work in the vicinity thereof or 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, being without obligation to remove, raise, or lower its wires until such payment shall have been made. The Company shall be given not less than forty-eight (~8) hours advance notice to arrange for such temporary wire changes. All of Com- . pany~s lines for the transmission and distribution of ~. • electrical energy, located within City, shall be constructed, operated anti maintained, as to clearances, in accordance with the National Electrical Safety Code, as published in March, 198, by the National BurEau of Standards, Handbook 30; provided, however, nothing Yierein shall impair the rigYit of the City in the future by ordinance to adopt and require compliance vrith any new, amended or revised code, or by ordinance to require compliance with such further or dif- ferent standards as may be found to be in the public interest. Section 7. In consideration for the rights and privileges herein granted, the Company agrees to pay to the City for each year of the term of this franchise the sum of $500 plus a sum equal to ~o of the gross receipts for such • ear exclusive of recei is for street li hfvin received y p g g~ by the Company from its electrical 13.ghting and power sales for consumption within the corporate limits of the City. Pay- ment shall be made by the 15th day of each February for the preceding calendar year. For fractional calendar years said $500 shall be proportionately reduced and said ~~ shall be based upon the gross receipts for that part of the year in- volved. Said payments shall be in lieu of any license charge or fee, street or alley rental, or other character of charge or levy by the City for the use or occupancy of the public reads, highways, streets, lanes, alleys or other public places in the City and in lieu of any pole tax or inspection fee tax. Section 8. In addition to the considerations set forth in Section 7, the Company shall hold itself ready to furnish, free of charge, subject to the use of the City, such pole space as may be required from time to time for the installation of City owned traffic, police and fire alarm system conductors; provided such conductor space does not exceed the capacity of one crossarm on any one pole and provided such space is then available on existing poles. The specific location for these traffic, police and fire alarm conductors on Company poles shall be determined by 5. • • the Company and will be allotted at the time specific appli- • cations for space are received from the City. All City traf- fic, police and fire alarm circuits on Company poles shall be installed in strict compliance with the applicable pro- visions of the National Electrical Safety Code, Handbook 30, as published in March, 1948, by the United Sates Department of Commerce, Bureau of Standards; provided, however, noth- ing herein shall impair the right of the City in the future by ordinance to adopt any new, amended or revised code, or by ordinance to specify such further or different standards as may be found to be in the public interest. Where main under°ground duct lines are located between manholes, the • Com an shall ermit free of char a the installation in one P Y P g interior duct by the City of its traffic, police or fire alarm signal cables; provided space is available in an in- terior duct not suitable for power circuits without inter- ference with the Company~s system neutral conductors. All cables installed by the City in Company ducts shall be of the non-metallic sheath type to prevent corrosive or electro- lytic action between City and Company owned cables. A request for duct assignment shall in each instance be submitted to the Company and a sketch showing duct allocation shall be received from the Company prior to the installation of City cables in Company owned duct lines. All City owned conductors and cables, whether on poles or in duct lines, shall be constructed, maintained and operated in such manner as to not interfere with or create a hazard in the operation of the Company~s electrical transmission and distribution system. It is further agreed that the Company shall not be responsible to any party or parties whatsoever for any claims, demands, losses, suits, judgments for damages or injuries to persons or property by reason of the construction, mainte- nance, inspection or use of the traffic signal light system 6. ~ ~ or police and fire alarm systems belonging to the City and • constructed upon Company's poles or in its ducts, and the City shall indemnify and hold the Company harmless against all such claims, losses, demands, suits and judgments, but the City does not, by this agreement, admit primary lia- bility to any third party by reason of the City's operation and use of such police and fire alarm wires, such being a function of government. Section g. Nothing contained in this ordinance shall ever be construed as conferring upon Company any ex- clusive rights or privileges of any nature whatsoever. Section 10. It shall be the Company's obligation • as provided in Section 5 hereof to furnish efficient electri- cal service to the public at reasonable rates and to maintain its property in good repair and working order, except when prevented from so doing by forces and conditions not reason- ably within the control of Company. Should Company fail or refuse to maintain its properties in good order and furnish efficient service at all times throughout the life of this grant, except only when prevented from so doing by forces and conditions not reasonably within the control of the Company, or should the Company fail or refuse to furnish efficient service at reasonable rates, lawfully determined by the City, throughout the life of this grant, excepting only during such periods as the Company shall in good faith and diligently contest the reasonableness of the rates in question, then it shall pay to the City the sum of Twenty- Five Dollars ($25) for each day it shall so fail or refuse after reasonable notice thereof and a hearing thereon by the City. Any suit to recover such sum shall be filed within one year from the date of accrual. Section 11. If any provision, section, sub- section, sentence, clause, or phrase of this ordinance is 7. • for any reason held to be unconstitutional, void or invalid • (or for any reason unenforceable), the validity of the re- maining portions of this ordinance shall not be affected thereby, it being the intent of the City in adopting this ordinance that no portion thereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all provisions of this ordinance are declared to be severable. Section l2. The City by the granting of this franchise does not surrender or to any extent lose, waive, impair or lessen the lawful powers and rights, now or here- . after vested in the City to regulate the rates and services of Company; and Company by its acceptance of this franchise agrees that all such lawful regulatory powers and rights as the same may be from time to time vested in the City shall be in full force and effect and subject to the exercise thereof by the City at any time and from time to time. Section 13. The Company, its successors and as- signs, shall protect and hold City harmless against all claims for damages or demands for damages to any person or property by reason of the construction and maintenance of its eleetrial lighting and power system, or in any way growing out of the granting of this franchise, either directly or indirectly, or by reason of any act, negli- gence, or nonfeasance of the contractors, agents or em- ployees of Company, its successors or assigns, and shall refund to City all sums which it may be adjudged to pay on any such claim, or which may arise or grow out of the ex- ercise of the rights and privileges hereby granted, or by the abuse thereof, and Company, its successors and assigns, shall indemnify and hold the City harmless from and on account of all damages, costs, expenses, actions, and causes 8. • of action that may accrue to or be brought by any person, persons, company or companies at any time hereafter by reason of the exercise of the rights and privileges hereby granted, or of the abuse thereof. Section 14. The City recognizes that Company finances a substantial portion of its construction, im- provements and extensions with funds obtained through the issuance of bonds secured by a mortgage upon the prop- erties of the Company. In order to facilitate the con- struction, extension and improvement of Company's facili- ties and to insure the discharge of Company's obligations under this franchise the City agrees that in the event Company's mortgaged property shall be sold under a fore- closure of a mortgage thereon all rights and interests of Company in and under this franchise may be sold and assign- ed to any party purchasing all or a substantial part of the mortgaged property located within the City. Section 15. In granting this franchise, it is understood that the lawful power vested in the City to regulate all public utilities within City, and to regu- late the local rates of public utilities within the City within the limits of the Constitution and laws, and to re- quire all persons or corporations to discharge the duties and undertakings, for the performance of which this fran- chise was made, is reserved; and this grant is made sub- ject to all lawful rights, powers and authorities, either of regulation or otherwise, reserved to the City by its charter or the general laws of the State of Texas. Section 16. This franchise replaces all former franchise agreements or ordinances with Company, or its predecessors, which are hereby repealed, such repeal to be effective upon the date operations are started under • this franchise. 9. • Section 17. The Company shall, within thirty (30) days from the date this ordinance is finally passed and approved, file with the City a written statement sign- ed in its name and behalf in the following form: "To the City of LaPorte: "The Company for itself, its succes- sors and assigns, hereby accepts the above and foregoing ordinance and agrees to be bound by all of its terms and provisions. HOUSTON LIGHTING c~ POWER COMPANY By u "Dated the day of 19 " Section 18, This ordinance shall take effect and be in force sixty proval, and after secutive weeks in paper of the City term of this franc ance with Section (60) days after its final passage and ap- publication once each week for four con- The LaPorte Liberal, the official news- and upon acceptance by the Company the ~hise shall begin and continue in accord- 2 hereof. Passed first reading in full the ~--- day of Passed final reading in full the ~~day of _ 19~°`~. Passed this the ~ day of lq Approved this the !Q ` ~ day of _, 19~ M 0 ~p'~`El~j -- ~z~ cG ~ Gc 0 ISS N S • ATTEST: y C e r;~- 10. • • To the City of LaPorte: The Company for itself, its successors and as- signs, hereby accepts the above and foregoing ordinance and agrees to be bound by all of its terms and provisions. HOUSTON LIGHTING & POWER COMPANY By us in, ice rest en Dated the 22nd day of April , 1958 . THE STATE OF TEXAS COUNTY OF HARRIS . I, Frank G. Baker, City Clerk of the City of LaPorte, Texas, certify that the above and foregoing ordinance was duly passed by the City Commission of LaPorte, Texas, on first reading on the ~~ day of '" 195, and on final e- a~~ng on the ay o ~ , 195 the ordi- nance receivin on bo h passages thereo the affirma- tive votes of the Mayor a ~Commissioner~ of the City; after the passag~b~'uch ordinance the same was duly authenticated by the signatures of the Mayor and City Clerk of the City and duly recorded in full in the ordinance book of said City with the passage thereof duly noted in the minutes of the City Commission; pur- suant to the order of the City Commission said ordinance was published in full in The LaPorte Liberal, the offi- cial newspaper of the City of LaPorte, once a vaeek for four con cutive weeks,, such publications having been on the ~ .S'~day of ~~~~~ , 195 , the day o ~ , 1 5 , tie C~day of 195 , and the ~°day of ___.____`~~ 195 all of w i~is evi- denced by of idavic of pu lication duly filed by the publisher of said official newspaper in the offi- cial records of the City of LaPorte and such publication was further duly noted upon the original record of said ordinance; that the bove and foregoing acceptance ~ as duly filed on the j~ day of 195 , in the official records of the Ci y LaPorte, Texas. IN TESTIMONY REOF, w ness my hand and sea ~,,• of office this the /~ day of ~~f-j , 195 CITY CLERK, CITY OF LAPORTE, TEXAS • The Light company Houston Lighting & Powerd 5~6 ~ ~~ ~~~ ~ u lc. ~ P. O. Boz 597 Seabrook, Tezae 77586 (713) 474-4151 October 22, 1991 Honorable Mayor City of La Porte P. 0. Box 1115 La Porte, Texas Dear Sirs: and City Council 77571 Under the terms of the stipulation agreed to in Houston Lighting & Power Company's recent rate case, we have agreed to make available to municipalities to which we currently make franchise fee payments some revised payment arrangements. There is no requirement that you adopt the revised franchise fee payment arrange- ments, but they are available if you consider them advantageous. The revised arrangements would provide for (i) quarterly franchise fee payments of most franchise fees that would otherwise be due annually, and (ii) monthly electric bill credits for franchise fees related to service provided to your municipality. The specific payment procedures contemplated by this arrangement are set forth in Exhibit "A" attached hereto. In the event the City of La Porte finds the attached procedures acceptable, please acknowledge your desire to implement the payment procedures attached hereto by executing this acknowledgement in the space provided below and returning one (1) fully executed copy of this acknowledgement to the undersigned on or before November 4, 1991. Otherwise, Houston Lighting & Power Company will continue to make franchise payments in accordance with the procedures already in place. If you have any questions concerning the attached arrangements, pleaase feel free to contact me at 474-0530. incerely, es L. Wya District Manager Acknowledged this ~ ~' acting for and on behalf rV p~w~cY _ day of ~- of the City of La Porte. By ~ S~iw.~C T, 1~~:~~- Name : ~.a ~ e ~T T. ~e~r .c vr-~ Title. C~k~ IM.o~y. rv-t~to,,.,~ cA P~ T'o . ovs; ~~ ~ A Subsidiary of Houston Industries Incorporated 1991 by the undersigned, Exhibit "A" • Franchise Payment Procedures 1. The Franchise Payment Procedures described herein shall be effective from and after the date (i) Houston Lighting & Power Company ("HL&P") has received a final order of the Public Utility Commission of Texas ("PUC") in Docket No. 9850, approving the terms of the stipulation dated February 27, 1991 (the "Stipulation") and (ii) the City of La Porte ("La Porte") has acknowledged acceptance of the payment procedures described herein. The first payment due under these Franchise Payment Procedures will be paid the later of (i) thirty (30) days after a final order in Docket No. 9850, or (ii) the date such payments would become due under the provisions of Article XI of the Stipulation, and shall include all franchise fees due from January 1, 1991 through each calendar quarter prior to such final order. Thereafter, within forty-five (45) days after the end of each calendar quarter, HL&P will pay to La Porte an amount equal to the franchise fees that would be due for electric service rendered during the preceding calendar quarter. The quarterly franchise payments will be calculated as provided in Ordinance No. 532, net of franchise fees relating to municipal accounts, which will be handled under Paragraph 2 below. 2. For municipal electric service accounts in the name of La Porte a monthly credit will be applied to each such account in an amount equivalent to the amount of franchise fees included in base rate charges for each account. Franchise fees due in excess of this monthly credit (if any) will be paid at the end of the quarter. 3. No later than the date by which the franchise payment for the preceding calendar year is due pursuant to the terms of Ordinance No. 532, HL&P shall determine the total franchise fee due to La Porte for the preceding calendar year, including any additional amount owing, after taking into account the payments previously made and credits given. If any overpayment is made by HL&P, such overpayment shall be credited against the next franchise payment made by HL&P or shall be paid by La Porte to HL&P, if no subsequent payments are owed. 4. Upon at least sixty (60) days prior written notice to HL&P, La Porte shall have the right to request HL&P to suspend the payment procedures provided for herein, in which event HL&P shall resume making payments of franchise fees in the manner in effect as of the period immediately preceding the implementation of these Franchise Payment Procedures. 5. The Franchise Payment Procedures described herein are subject to modification pursuant to subsequent order of the PUC. If any aspect of these Franchise Payment Procedures is determined by any court or regulatory authority to be illegal, unauthorized or otherwise failing to satisfy the obligations of any party under the referenced Ordinance No. 532 or the order of the PUC approving the Stipulation is subsequently overturned in whole or in part, such procedures shall be terminated, and franchise payments shall thereafter be made as otherwise provided in said Ordinance. i • KNOX W. ASKINS JOHN D. ARMSTRONG October 24, 1991 ASKINS S~ ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1216 LA PORTE, TEXAS 77572-1218 IL, ~ .~' ~',v W, y~ ~` k:,~ , Mr. Robert T. Herrera City Manager City of La Porte City Hall La Porte, Texas Dear Bob: At your request, I have examined letter from HL&P to the City of La Porte, dated October 22, 1991, requesting a revised procedure for franchise fee payments. I have reviewed the proposed agreement, and find no objection to it. It seems the proposed agreement would enhance the City's cash flow from HL&P, compared to the present annual payments. You might want to have Jeff Litchfield examine the agreement, to see if the method of crediting the City's electric accounts, would present him any undue problems in posting the City's books as to that expense item. I have prepared an approval ordinance, in the event you wish to recommend this matter to City Council. Yours very truly, ~G~ / - Knox W. Askins City Attorney City of La Porte TELEPHONE 713 471-1886 TELECOPIER 713 471-2047 R~ ~~ iVED OCT 2 ~ 1~~1 C~~i~Y' ~~iANAGERS 0+ FIDE KWA:sw Enclosure