HomeMy WebLinkAboutO-2006-2914 first reading
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ASKINS & ARMSTRONG. P. C.
ATTORNEYS AT LAW
702 W, FAIRMONT PARKWAY
P,O, BOX 121B
LA PORTE, TEXAS 77572-1218
CLARK T, ASKINS
TELEPHONE 281.471.1886
TELECOPIER 281.471.2047
KA SKINS@HOUSTON,RR,COIol
JOHN-A@SWBELL,NET
eTA SKINS@SWBELL,NET
KNOX W, ASKINS
JOHN 0, ARMSTRONG
June 19, 2006
JUN 1 9 2006
Ms. Martha A. Gillett
City Secretary
City of La Porte
City Hall
La Porte, Texas
'\..)
Re: Agenda Request for Centerpoint Energy, Inc. Matters
-- June 26, 2006.
Dear Martha:
Please place the ordinance approving and authorizing an agreement
between the City of La Porte and Centerpoint Energy Houston
Electric, in connection with the rate case, on the city Council
agenda of June 26, 2006, as an action item.
Mr. Richard arum, Service Area Supervisor for Centerpoint Energy,
Inc. has advised me that all of the coalition cities, together with
some additional cities within the company's system, have approved
the "Term Sheet for Settlement of Centerpoint Energy Houston
Electric (CEHE) Rate Case". It is my understanding that the
approval by the cities is not binding upon the Public Utility
Commission. Upon passage of the requested ordinance, the City of
La Porte would join the other cities in their petition to the PUC
to approve the agreement.
Please place on the June 26, 2006, agenda, the enclosed ordinance
granting Centerpoint Energy Houston Electric, LLC, a 30 year
franchise, as a workshop item.
The City's Home Rule Charter requires two (2) readings on an
ordinance granting a franchise, which readings must be more than
thirty (30) days apart. I am requesting that~e
ordin City Council agenda of ~
and placed on the City Council agenda
August 14, 2006, for its second reading. Following
passage on second reading, the caption of the ordinance noting the
place where the full text may be examined by the public, shall be
published once each week for four (4) consecutive weeks in the
Bayshore Sun, the official newspaper of the City. The ordinance
takes effect sixty (60) days after its final passage, which will be
on October 15, 2006.
ASKINS & ARMSTRONG. P. C.
ATTORNEYS AT LAW
Martha A. Gillett
June 19, 2006
page 2
Mr. Richard Orum of CenterPoint Energy will be present for the
meeting of June 26, 2006, to answer any questions which City
Council may have concerning either of these items.
y~~trUIY'
Knox W. Askins
City Attorney
City of La Porte
KWA: sw
Enclosures
COpy
h rs-t ~ad)11j
CITY OF LAPORTE, TEXAS, ORDINANCE NO. 2006- ~ q If
AN ORDINANCE GRANTING TO CENTERPOINT ENERGY HOUSTON ELECTRIC,
LLC THE RIGHT, PRIVILEGE AND FRANCHISE TO USE THE PUBLIC RIGHTS-OF-
WAY AND TO USE, LICENSE, OR EXPLOIT THE COMPANY'S FACILITIES WITHIN
THE PUBLIC RIGHTS-OF-WAY TO CONDUCT AN ELECTRIC DELIVERY
BUSINESS IN THE CITY AND FOR SUCH OTHER BUSINESS PURPOSES AS THE
COMPANY MAY DESIRE FROM TIME TO TIME, SPECIFICALLY INCLUDING, BUT
NOT LIMITED TO, THE GRANTING OF ACCESS TO THOSE FACILITIES FOR THE
DELIVERY OF BROADBAND OVER POWER LINES OR SIMILAR SERVICE WITHIN
THE CITY OF LAPORTE, TEXAS.
** * ***
WHEREAS, City of LaPorte, Texas Ordinance No. 532 (the "Prior Franchise")
granted an electrical lighting and power franchise to Houston Lighting & Power
Company, for a term expiring July 1, 2008; and
WHEREAS, Company is the successor to Reliant Energy, Incorporated ("REI"),
which was the successor to Houston Lighting & Power Company, by virtue of a
corporate restructuring of REI that occurred in August 2002, in which REI was merged
with and into an indirect wholly owned subsidiary of CenterPoint Energy, Inc., which
was converted into a limited liability company and was renamed CenterPoint Energy
Houston Electric, LLC; and
WHEREAS, Company owns and operates an electric delivery business within the
corporate limits of the City and Company is willing to continue to provide electric
delivery services within the corporate limits of the City; and
WHEREAS, Company and the City have reached agreement on the terms and
conditions by which they will amend the Prior Franchise and extend the term of the Prior
Franchise for an additional thirty (30) years; and
WHEREAS, it is hereby found and determined by the City Council of the City of
La Porte that it is in the best interests of the City that the Prior Franchise granting to the
Company the right to use the public rights-of-way to conduct an electric delivery
business in the city and for such other business purposes as the company may desire
from time to time be amended and extended for an additional thirty (30) year term,
subject to the terms and conditions described in this ordinance; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS:
Section 1. That the facts contained in the preamble to the Ordinance are
determined to be true and correct and are hereby adopted.
Final Draft: June 26, 2006
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Section 2. Definitions.
Annual Adjustment Factor has the meaning set forth in Section 11 below.
Annual Franchise Fee has the meaning set forth in Section 11 below.
Broadband over Power Lines (BPL) or "Access BPL" has the same meaning as
that used by the Federal Communications Commission in Section 15.3 of its Rules as
reprinted below:
Access Broadband over Power Line (Access BPL). A carrier
current system installed and operated on an electric utility
service as an unintentional radiator that sends radio
frequency energy on frequencies between 1.705 MHz and
80 MHz over medium voltage lines or over low voltage lines
to provide broadband communications and is located on the
supply side of the utility service's points of interconnection
with customer premises. Access BPL does not include
power line carrier systems as defined in Section 15.3(t) of
this part or In-House BPL as defined in Section 15.3(gg) of
this part.
City means the City of La Porte, Texas, a municipal corporation of the State of
Texas.
City Council means the governing body of the City, or its designee.
Company means CenterPoint Energy Houston Electric, LLC, a Texas limited
liability company.
Effective Date means October 13, 2006.
First Rate Case has the meaning set forth in Section 14 below.
Force Majeure means forces or conditions not reasonably within the control of a
party, including a strike; war or act of war (whether an actual declaration of war is made
or not); insurrection; riot; act of public enemy; accident; fire; flood or other act of God;
sabotage; shortages in materials, supplies and equipment; governmental regulations,
limitations and restrictions as to the use and availability of materials, supplies and
equipment and as to the use of services; unforeseen and unusual demands for service;
or other events, where the affected party has exercised all due care in the prevention
thereof and such causes or other events are without the fault or negligence of the
affected party.
Franchise means this Ordinance and the rights and privileges granted by this
Ordinance.
Franchise Year has the meaning set forth in Section 11, below.
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Franchise Area means the area within the boundaries of the City as of the
Effective Date and as same may change from time to time during the term of the
Franchise.
Initial Franchise Period shall have the meaning set forth in Section 11, below.
Other Services means any service, exclusive of the transmission and distribution
of electricity, provided or allowed to be provided through the use or license of the
System for a fee, including but not limited to BPL.
Person means any individual, firm, partnership, association, corporation,
company or organization of any kind.
Prior Franchise has the meaning set forth in the first Whereas clause, above.
Public Rights-of-Way means the areas in, under, upon, over, across, and along
any and all of the present and future Streets or streams now or hereafter owned or
controlled by City.
Public Works Improvement Projects has the meaning set forth in Section 5,
below.
PUC means the Public Utility Commission of Texas or its successor agency with
equivalent jurisdiction.
Retail Customer means any Person taking delivery of electricity from Company,
at a point of delivery within the Franchise Area.
Street means the surface and the space above and below any public street, road,
highway, alley, bridge, sidewalk, or other public place or way.
System means the Company's facilities erected, constructed, maintained,
operated, used, extended, removed, replaced, and repaired, as necessary, by Company
pursuant to this Franchise, including without limitation, all poles, pole lines, towers,
transmission lines, wires, guys, conduits, cables, and other desirable instrumentalities
and appurtenances (including telegraph and telephone poles and wires for use of
Company), necessary and proper for the purpose of transmitting and distributing
electricity to the City and the inhabitants of said City or other Persons, for any purpose
for which electricity may be used.
Section 3. Subject to the terms, conditions and provisions of this Franchise, City
hereby grants to Company the right, privilege and franchise to use City's Public Rights-
of-Way to construct, maintain, operate and use Company's System to conduct within
the City an electric delivery business and the right to use, license, or exploit the System
within the Public Rights-of-Way for Other Services. This Franchise does not restrict
City's right to impose reasonable fees upon third parties for the use of the Public Rights-
of-Way to provide Other Services, including the right to impose fees upon providers of
BPL service, so long as such fees are assessed on a non-discriminatory basis with
those charged to other companies providing services competitive with the Other
Services.
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Section 4. Upon the filing with City by Company of the acceptance required
hereunder, the Prior Franchise shall be amended by replacing the language thereof, in
its entirety, with the language of this Franchise; and the term thereof shall be extended,
and it shall remain in full force and effect for an additional term and period of thirty (30)
years from and after July 1, 2008.
Section 5. All poles erected by Company pursuant to the authority herein
granted shall be of sound material and reasonably straight, and shall be so set that they
shall not interfere with the flow of water in any gutter or drain, and so that the same shall
interfere as little as practicable with the ordinary travel, on the Streets or other Public
Rights-of-Way. Within the Streets or other Public Rights-of-Way of 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 in the construction and
maintenance of Company's System in the City, shall be subject to the reasonable and
proper regulation, control and direction of City, or of any City official to whom such
duties have or may be duly delegated, which regulation and control shall include, but
not by way of limitation, the right to require in writing, to the extent provided in Section
10, the relocation of Company's System at Company's cost within the Streets or other
Public Rights-of-Way whenever such shall be reasonably necessary to accommodate
improvement projects within such Streets or Public Rights-of-Way by the city
department with primary responsibility for public works projects ("Public Works
Improvement Projects").
Section 6. In consideration for the compensation set forth in Sections 11 and
15, City agrees that if City sells, conveys, or surrenders possession of any portion of the
Public Right-of-Way that is being used by Company pursuant to this Franchise, City, to
the maximum extent of its right to do so, shall first grant Company an easement for such
use; and the sale, conveyance, or surrender of possession of the Public Right-of-Way
shall be subject to the right and continued use of Company.
Section 7. Following completion of work in Public Rights-of-Way, Company shall
repair the affected Public Rights-of-Way as soon as possible, but in all cases shall
comply with all valid City ordinances governing time periods and standards relating to
excavating in the Public Rights-of-Way. No Street or other Public Right-of-Way shall be
encumbered by construction, maintenance or removal work by Company for a longer
period than shall be necessary to execute such work.
Section 8. The service furnished hereunder to City and its inhabitants shall be
first-class in all respects, considering all circumstances, and Company shall furnish the
grade of service to Retail Customers as provided by its rate schedules and shall
maintain its System in reasonable operating condition during the continuance of this
Franchise. Company's tariffs shall govern the rates, access to service, terms and
quality of electric delivery services provided by Company. An exception to this
requirement is automatically in effect when due to Force Majeure. In any Force Majeure
event, Company shall do all things reasonably within its power to restore normal
service.
Section 9. Company, on the written request of any person, shall remove or raise
or lower its wires temporarily to permit construction work in the vicinity thereof or to
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permit the moving of vessels, 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 has been made. Company shall
be given adequate, and in no event less than forty-eight (48) hours, advance notice to
arrange for such temporary wire changes.
Section 10. Company shall construct, operate, and maintain its transmission
and distribution facilities in substantial accordance with Company's own Service
Standards and the National Electrical Safety Code ("NESC"). Company shall determine
the specific location and the method of construction and types of materials used in
building, maintaining, and operating Company's transmission and distribution facilities.
City shall require its employees and contractors performing work for the benefit of City
to comply with all applicable laws, statutes, codes and standards (including, without
limitation, Section 752 of the Texas Health and Safety Code, as the same may be
amended or replaced, and the NESC) when working near Company's System and to
report as soon as practicable any damage done to Company's System. Company also
agrees to require its employees and contractors performing work for the benefit of City
to comply with all applicable laws, statutes, codes and standards (including, without
limitation, Section 752 of the Texas Health and Safety Code, as the same may be
amended or replaced, and the NESC) when working near City's facilities and to report
as soon as practicable any damage done to City's facilities. Company shall relocate
facilities within Public Rights-of-Way at Company's own expense, exclusive of street
lighting and facilities installed for service directly to City, to accommodate Public Works
Improvement Projects, including, but not limited to street widening, change of grade,
water, sewer, or drainage upgrades, construction or reconstruction projects and minor
relocation of traffic lanes. City shall bear the costs of all relocations of street lighting
and facilities installed for service directly to City and of any relocation of other facilities
requested by City for reasons other than Public Works Improvement Projects. Except in
the event of an emergency, City shall give Company at least seventy-two (72) hours
notice when City or City's contractor is requesting the bracing of Company's poles.
Company shall pay for the bracing to accommodate Public Works Improvement
Projects, including but not limited to street widening, change of grade, water, sewer, or
drainage upgrades, construction or reconstruction projects and minor relocation of traffic
lanes.
Section 11. In consideration for the rights and privileges herein granted,
Company agrees to pay to City, beginning on the Effective Date and continuing
throughout the remaining term of the Prior Franchise and the additional thirty (30) year
term of this Franchise provided for in Section 4, above, an annual franchise fee
(referred to herein as "Annual Franchise Fee"), subject to an Annual Adjustment Factor
as set forth below. Except as set forth in Section 15, payment of the Annual Franchise
Fee shall be the total compensation payable to City in consideration for the right,
privilege and franchise herein conferred for Company's use of the Public Rights-of-Way
to construct, operate, use and maintain its System for the provision of electric
transmission and distribution service and its right to use, license, or exploit its System
for Other Services.
The Annual Franchise Fee shall be calculated as follows:
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1. The "Annual Franchise Fee," for the period beginning on the Effective Date
and continuing through June 30, 2007 (the "Initial Franchise Period"), shall be
$901,742.96.
2. The Annual Franchise Fee for each succeeding twelve-month period
(each a "Franchise Year"), including the Franchise Year beginning July 1,
2007, shall be adjusted by multiplying $1,265,908.39 by the Annual
Adjustment Factor. The "Annual Adjustment Factor" for any given year shall
be a fraction, the numerator of which shall be the kWh delivered by Company
within the Franchise Area (inclusive of street lighting) in the previous calendar
year and the denominator of which shall be the kWh delivered by Company
within the Franchise Area (inclusive of street lighting) in 2005, said amount
being 405,673,951 kWh. (Example: The Annual Franchise Fee for the
Franchise Year beginning July 1, 2010 = $1,265,908.39 x 2009
kWh/405,673,951.
In no case, however, shall the Annual Franchise Fee be less than $1,265,908.39,
except as provided in (1), above, for the initial Annual Franchise Fee Period. In
calculating the amount to be paid each year, Company shall offset its Annual Franch
In calculating the amount to be paid each year, Company shall offset its Annual
Franchise Fee payments with the amount of the Municipal Account Franchise Credits
and Municipal Franchise Fee Credits provided in Company's tariffs and applicable to
City in the prior calendar year. The Annual Franchise Fee shall be payable in equal
monthly installments due the first day of each calendar month. Company shall calculate
the new franchise fee to be payable for each Franchise Year beginning July 1st and
shall provide the same along with the basis for such calculation to City for its review no
later than April 1 sl of each year. If Company does not receive an objection from City by
May 31st, Company shall implement the adjusted Annual Franchise Fee payment on
July 1st. If the additional thirty (30) year term of this Franchise provided for in Section 4,
above, ends on any day other than the last day of the last Franchise Year, then the
Annual Franchise Fee for the final Franchise Year shall first be calculated pursuant to
this Section 11 and then pro rated accordingly.
Section 12. The parties agree that the franchise payments due under this
Franchise are reasonable and necessary and that the parties shall use their best efforts
to enable Company to recover these payments through its electric rates.
Section 13. Except as provided in Section 15, the Annual Franchise Fee
payable hereunder shall be the total compensation payable by Company to City for
Company's use of the Public Rights-of-Way for the conduct of its business under the
Franchise. City shall not charge any additional license, charge, fee, street or alley
rental, or other character of charge or levy for the use or occupancy of the Public
Rights-of-Way in City, or any pole tax or inspection fee tax. If City does charge
Company any additional license, charge, fee, street or alley rental, or other character of
charge or levy, then Company may deduct the amount charged from the next
succeeding franchise payment or payments until fully reimbursed. The Franchise shall
constitute a permit to perform all work on Company's System within the Public Rights-
of-Way and to park vehicles in the Streets and other Public Rights-of-Way when
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necessary for the installation, removal, operation or maintenance of Company's System.
Company and contractors performing work for Company shall not be required to obtain
any permits in addition to the Franchise or to pay any fee in addition to the Annual
Franchise Fee in order to perform work on Company's System or to park within the
Streets and other Public Rights-of-Way. Company shall cooperate with City to avoid
unnecessary disruption, and Company shall comply with all valid City ordinances
governing time periods and standards relating to excavating in the Public Rights-of-
Way.
Section 14. In the first rate case to review Company's base rates following the
Effective Date (the "First Rate Case"), City shall support Company's request to include
in Company's base rates the entire then-effective Annual Franchise Fee. If, as a result
of the First Rate Case, or any subsequent rate case, Company's entire then-effective
Annual Franchise Fee is not included in Company's base rates, then Company shall be
required to pay only so much in franchise fees as the amount of franchise fees used by
the PUC to calculate Company's then-effective rates.
Section 15. In addition to the considerations set forth in Section 11, Company
shall furnish, free of charge, subject to the use of City, such pole and/or duct 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
available capacity on anyone existing pole or in one existing interior duct. Company
shall allow for the expanded use of existing energized conductors by City for the
purposes of providing traffic signal communication interconnectivity with prior written
approval from Company. The specific location for these traffic, police and fire alarm
conductors on Company poles or ducts shall be determined by Company and shall be
allotted at the time specific applications for space are received from City. All City traffic,
police and fire alarm circuits on Company poles and ducts shall be designed and
installed, operated and maintained in compliance with the applicable provisions of the
NESC and other laws, statutes, codes and ordinances applicable to private parties and
so as to create no interference, corrosion, harm, damage or hazard with, to or from
Company's System or Company's business. All plans for such city traffic, police and
fire alarm circuits must be submitted for Company's written approval prior to installation.
Any modifications to Company's System necessary to accommodate such installation
shall be paid by City. If, after installation, City's equipment is found to interfere with
Company's System or business, Company and City shall work together to address the
problem and, if deemed practical by Company, preserve City's access. Where main
underground duct lines are located between manholes, Company shall permit free of
charge the installation in one interior duct by City of its traffic, police or fire alarm signal
cables; provided space is available in an interior duct not suitable for power circuits
without interference with Company's system neutral conductors. All cables installed by
City in Company ducts shall be of the non-metallic sheath type to prevent corrosive or
electrolytic action between City and Company owned cables. A request for duct
assignment shall in each instance be submitted to Company and a sketch showing duct
allocation shall be received from 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 Company's System or Company's
business. If after installation, City's equipment is found to interfere with Company's
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System or business, Company and City shall work together to address the problem and,
if deemed practical by Company, preserve City's access.
In addition to the consideration set forth in Section 11, Company shall permit City
to use, free of charge, extra space on its street light poles to install City-owned traffic
control signs and decorative banners, with prior written approval from Company and
provided that such use is consistent with the NESC and other applicable engineering
and operational codes and standards.
Notwithstanding any other provision in this Franchise" it is further
agreed that 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,
maintenance, inspection or use of the traffic signal light systems, police
and fire alarm systems, traffic control signs, or decorative banners
belonging to City and constructed upon Company's poles or street light
poles or in its ducts, and City shall indemnify and hold Company harmless
against all such claims, losses, demands, suits and judgments, to the
extent permitted by the Texas Tort Claims Act, but City does not, by this
agreement, admit primary liability to any third party by reason of City's
operation and use of such traffic signal light systems, police and fire alarm
systems, traffic control signs, or decorative banners, such being a function
of government.
Section 16. City may conduct an audit or other inquiry, or may pursue a cause
of action in relation to the payment of the Annual Franchise Fee only if such audit,
inquiry, or pursuit of a cause of action concerns a payment made less than two (2)
years before commencement of such audit, inquiry, or pursuit of a cause of action. City
shall bear the costs of any such audit or inquiry. All books and records related to
Company's operations under this Franchise shall be available to City. Upon receipt of a
written request from City, such documents shall be made available for inspection and
copying no later than thirty (30) days from the receipt of such request. Amounts due to
City for past underpayments or amounts due Company for past overpayments shall
include interest calculated using the annual interest rates for overcharges as set by the
Texas Public Utility Commission. Said interest shall be payable on such sum from the
date the initial payment was due until it is paid.
Section 17. The parties agree to waive any and all claims, asserted or
unasserted, arising out of prior franchise agreements including, without limitation, the
Prior Franchise, except those claims relating to Company's obligations as determined in
an audit underway as of March 1, 2006.
Section 18. Nothing contained in this Franchise shall ever be construed as
conferring upon Company any exclusive rights or privileges of any nature whatsoever.
Section 19. It shall be Company's obligation as provided in Section 8 hereof to
furnish efficient electrical 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
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forces and conditions not reasonably within the control of Company. Should Company
fail or refuse to maintain its System in good order and furnish efficient service at all
times throughout the life of this grant, except only when prevented from so doing by
Force Majeure, or should Company fail or refuse to furnish efficient service at
reasonable rates, lawfully determined by City, throughout the life of this grant, excepting
only during such periods as Company shall in good faith and diligently contest the
reasonableness of the rates in question, then it shall forfeit and pay to 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 City. Any suit to recover such penalty shall be filed
within one year from the date the penalty accrues.
Section 20. If any term or other provision of the Franchise is determined by a
nonappealable decision by a court, administrative agency, or arbitrator to be invalid,
illegal, or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of the Franchise shall nevertheless remain in full force and
effect so long as the economic or legal substance is not affected in any manner
materially adverse to either party. Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the parties shall negotiate in
good faith to modify the Franchise so as to effect the original intent of the parties as
closely as possible.
SECTION 21. Subject to Section 15, Company, its successors and
assigns, 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 electricity transmission and
distribution System, or in any way growing out of the granting of this
Franchise, either directly or indirectly, or by reason of any act, negligence,
or nonfeasance of the contractors, agents or employees 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
exercise of the rights and privileges hereby granted, or by the abuse
thereof, and Company, its successors and assigns, shall indemnify and
hold City harmless from and on account of all damages, costs, expenses,
actions, and causes of action, to the extent permitted by the Texas Tort
Claims Act, 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 22. In granting this Franchise, it is understood that the lawful power
vested by law in City to regulate all public utilities within City, and to regulate the local
rates of public utilities within City within the limits of the Constitution and laws, and to
require all persons or corporations to discharge the duties and undertakings, for the
performance of which this Franchise was made, is reserved; and this grant is made
subject to all lawful rights, powers and authorities, either of regulation or otherwise,
reserved to City by its Charter or by the general laws of this State.
Section 23. This Franchise amends the Prior Franchise, and extends the term
of the Prior Franchise for an additional thirty (30) year period and replaces all other
HOU03:1055752.7
former franchise agreements with Company, or its predecessors, which are hereby
repealed.
Section 24. 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 hereafter
vested in City under the Constitution and statutes of the State of Texas and under the
Charter of 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 City shall be in full force and effect and
subject to the exercise thereof by City at any time and from time to time.
Section 25. Within 30 days following the final passage and approval of this
ordinance, the Company shall file with the City Secretary, accompanied by appropriate
authorized corporate resolutions in a form acceptable to the City Attorney, a written
statement in the following form signed in its name and behalf:
"To the Honorable Mayor and the City Council of the City of La Porte, Texas:
For itself, its successors and assigns, Grantee, CENTERPOINT ENERGY
HOUSTON ELECTRIC, LLC, hereby accepts the attached ordinance and
agrees to be bound by all of its terms, conditions and provisions."
CENTERPOINT ENERGY HOUSTON
ELECTRIC, LLC
By:
Name:
Title:
"Dated this the
day of
,2006."
Section 26. This Franchise, having been published as required by Article VII,
"Franchises and Public Utilities" of the Home Rule Charter of the City of La Porte,
Texas, shall take effect and be in force from and after sixty (60) days following its final
passage and approval, and after publication once each week for four (4) consecutive
weeks in The La Porte Bayshore Sun, the official newspaper of the City of La Porte, and
receipt by the City of Company's acceptance filed pursuant to Section 25. In
compliance with the provisions of Article VII of the Home Rule Charter of the City of La
Porte, the Company shall pay the cost of those publications and any costs associated
with any elections held regarding this Franchise required by such Home Rule Charter
provisions.
Section 27. Every notice, order, petition, document, or other direction or
communication to be served upon the City or the Company shall be deemed sufficiently
given if sent by registered or certified mail, return receipt requested. Every such
communication to the Company shall be sent to:
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Vice President, Regulatory Relations
CenterPoint Energy, Inc.
1111 Louisiana Street
Houston, Texas 77002
Unless and until changed by written notice given in accordance with this section, every
such communication to the City or the City Council shall be sent to the:
City Manager
City of La Porte
City Hall
604 West Fairmont Parkway
La Porte, Texas 77571
and, as applicable, to the:
City Secretary
City of La Porte
City Hall
604 West Fairmont Parkway
La Porte, Texas 77571
The mailing of such notice, direction, or order shall be equivalent to direct personal
notice and shall be deemed to have been given the earlier of receipt or two business
days after it was mailed.
Section 28. The rights and remedies provided herein are cumulative and not
exclusive of any remedies provided by law, and nothing contained in this Franchise
shall impair any of the rights of the City or the Company under applicable law, subject in
each case to the terms and conditions of this Franchise.
Passed on first reading, the 10th day of July, 2006.
Passed and approved on second and final reading, the 14th day of August, 2006.
Alton E. Porter, Mayor
ATTEST:
Martha A. Gillett
City Secretary
APPROV~d
Knox W. Askins
City Attorney
HOU03:1055752.7