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HomeMy WebLinkAboutFRANCHISE AGREEMENT - CENTERPOINT ENERGY (2006)ASKINS ARMSTRONG P C ATTORNEYS AT LAW 702 W FAIRMONT PARKWAY P O BOX 1218 LA PORTE TEXAS 77572 1218 CLARK T ASKINS TELEPHONE 281471 1886 TELECOPIER 281 4712047 KA SKIN S@HOUSTON RR COM JOHN A@SWBELL NET eTA5KINS@SWBELL NET KNOX W ASKINS JOHN D ARMSTRONG July 25 2006 Ms Martha A Gillett City Secretary City of La Porte City Hall La Porte Texas RECEIVED Re Centerpoint Energy Franchise Agreement JUL 2 5 2006 CITY SECRETARY S OFFICE Dear Martha After City Council passes the Centerpoint Energy franchise agreement on final reading on August 14 2006 the caption must be published for four 4 consecutive weeks in the Bayshore Sun in your usual manner The publishing of the caption should also include a paragraph noting the place where the full text may be examined by the public YO UIY Knox W Askins City AttorneyCityofLaPorte KWA sw Enclosure ASKINS ARMSTRONG P C ATTORNEYS AT LAW 702 W FAIRMONT PARKWAY P O BOX 1218 LA PORTE TEXAS 77572 1218 CLARK T ASKINS TELEPHONE 281 4711886 TELECOPIER 281471 2047 K A SKINS@HOUSTON RR COM JOHN A@SWBELL NET eTA SK INS@SWBELl NET KNOX W ASKINS JOHN D ARMSTRONG June 26 2006 Hon Mayor city Council City of La Porte City Hall La Porte Texas Re Centerpoint Energy Franchise Agreement Gentlemen Attached to this letter is a final draft of the Centerpoint Energy franchise agreement dated June 26 2006 This draft changes the definition of Initial Franchise Year to Initial Franchise Period and amends section 11 subparagraph 1 to prorate the Annual Franchise Fee for the period from the effective date of the franchise agreement which will October 13 2006 as required by the Home Rule Charter to June 30 2007 and then places the Annual Franchise Fee on a July 1 franchise year for all subsequent years the city and Centerpoint performed in the street terpoint Energy negotiated and will be A separate letter agreement between Energy covering procedures for work rights of way within the City of L and the giving of notice s being presented at a future meet Yours very truly Knox W Askins City Attorney City of La Porte KWA sw Enclosure CITY OF LAPORTE TEXAS ORDINANCE NO 2006 pt1J4 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 ot the City that the Prior Franchise granting to the Company the right to use the public rights ot way to conduct an electric delivery business in the city and tor 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 HOU03 1055752 7 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 ccess 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 ofTexas 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 Godsabotageshortagesinmaterialssuppliesandequipmentgovernmentalregulationslimitationsandrestrictionsastotheuseandavailabilityofmaterialssuppliesandequipmentandastotheuseofservicesunforeseenandunusualdemandsforservice or other events where the affected party has exercised all due care in the preventionthereofandsuchcausesorothereventsarewithoutthefaultornegligenceoftheaffectedparty Franchise means this Ordinance and the rights and privileges granted by thisOrdinance Franchise Year has the meaning set forth in Section 11 below HOU03 1055752 7 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 CompanyatapointofdeliverywithintheFranchiseArea 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 CompanypursuanttothisFranchiseincludingwithoutlimitationallpolespolelinestowers 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 distributingelectricitytotheCityandtheinhabitantsofsaidCityorotherPersonsforanypurposeforwhichelectricitymaybeused Section 3 Subject to the terms conditions and provisions of this Franchise CityherebygrantstoCompanytherightprivilegeandfranchisetouseCitysPublicRightsofWaytoconstructmaintainoperateanduseCompanysSystemtoconductwithintheCityanelectricdeliverybusinessandtherighttouselicenseorexploittheSystemwithinthePublicRightsofWayforOtherServicesThisFranchisedoesnotrestrict City s right to impose reasonable fees upon third parties for the use of the Public RightsofWaytoprovideOtherServicesincludingtherighttoimposefeesuponprovidersofBPLservicesolongassuchfeesareassessedonanondiscriminatorybasiswith those charged to other companies providing services competitive with the OtherServices HOD03 1055752 7 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 citydepartmentwithprimaryresponsibilityforpublicworksprojectsPublicWorks 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 WayshallbesubjecttotherightandcontinueduseofCompany 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 longerperiodthanshallbenecessarytoexecutesuchwork Section 8 The service furnished hereunder to City and its inhabitants shall befirstclassinallrespectsconsideringallcircumstancesandCompanyshallfurnishthe 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 andqualityofelectricdeliveryservicesprovidedbyCompanyAnexceptiontothis requirement is automatically in effect when due to Force Majeure In any Force MajeureeventCompanyshalldoallthingsreasonablywithinitspowertorestorenormal 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 HOU03 1055752 7 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 obligationtoremoveraiseorloweritswiresuntilsuchpaymenthasbeenmadeCompanyshall 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 Citytocomplywithallapplicablelawsstatutescodesandstandardsincludingwithout 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 Citytocomplywithallapplicablelawsstatutescodesandstandardsincludingwithout 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 P ublic 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 gradewatersewerordrainageupgradesconstructionorreconstructionprojectsandminorrelocationoftrafficlanesCityshallbearthecostsofallrelocationsofstreetlightingandfacilitiesinstalledforservicedirectlytoCityandofanyrelocationofotherfacilities 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 polesCompanyshallpayforthebracingtoaccommodatePublicWorksImprovementProjectsincludingbutnotlimitedtostreetwideningchangeofgradewaterseweror drainage upgrades construction or reconstruction projects and minor relocation of trafficlanes Section 11 In consideration for the rights and privileges herein grantedCompanyagreestopaytoCitybeginningontheEffectiveDateandcontinuingthroughouttheremainingtermofthePriorFranchiseandtheadditionalthirty30yeartermofthisFranchiseprovidedforinSection4aboveanannualfranchisefeereferredtohereinasAnnualFranchiseFeesubjecttoanAnnualAdjustmentFactor as set forth below Except as set forth in Section 15 payment of the Annual FranchiseFeeshallbethetotalcompensationpayabletoCityinconsiderationfortherightprivilegeandfranchisehereinconferredforCompanysuseofthePublicRightsofWaytoconstructoperateuseandmaintainitsSystemfortheprovisionofelectrictransmissionanddistributionserviceanditsrighttouselicenseorexploititsSystemforOtherServices The Annual Franchise Fee shall be calculated as follows HOU03 1055752 7 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 periodeachaFranchiseYearincludingtheFranchiseYearbeginningJuly1 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 CompanywithintheFranchiseAreainclusiveofstreetlightinginthepreviouscalendar year and the denominator of which shall be the kWh delivered by CompanywithintheFranchiseAreainclusiveotstreetlightingin2005saidamount being 405 673 951 kWh Example The Annual Franchise Fee tor 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 AnnualFranchiseFeepaymentswiththeamountoftheMunicipalAccountFranchiseCredits 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 equalmonthlyinstallmentsduethefirstdayoteachcalendarmonthCompanyshallcalculate the new franchise tee to be payable for each Franchise Year beginning July 1st andshallprovidethesamealongwiththebasistorsuchcalculationtoCitytoritsreviewnolaterthanApril1stofeachyearItCompanydoesnotreceiveanobjectiontromCitybyMay31stCompanyshallimplementtheadjustedAnnualFranchiseFeepaymenton July 1 st If the additional thirty 30 year term of this Franchise provided tor in Section 4 above ends on any day other than the last day ot the last Franchise Year then the Annual Franchise Fee for the tinal Franchise Year shall first be calculated pursuant tothisSection11andthenproratedaccordingly Section 12 The parties agree that the franchise payments due under thisFranchisearereasonableandnecessaryandthatthepartiesshallusetheirbesteffortstoenableCompanytorecoverthesepaymentsthroughitselectricrates Section 13 Except as provided in Section 15 the Annual Franchise FeepayablehereundershallbethetotalcompensationpayablebyCompanytoCitytorCompanysuseotthePublicRightsotWayfortheconductofitsbusinessundertheFranchiseCityshallnotchargeanyadditionallicensechargefeestreetoralleyrentalorothercharacterofchargeorlevyfortheuseoroccupancyofthePublicRightsotWayinCityoranypoletaxorinspectionteetaxItCitydoeschargeCompanyanyadditionallicensechargeteestreetoralleyrentalorothercharacterofchargeorlevythenCompanymaydeducttheamountchargedfromthenextsucceedingfranchisepaymentorpaymentsuntiltullyreimbursedTheFranchiseshall constitute a permit to perform all work on Company s System within the Public RightsotWayandtoparkvehiclesintheStreetsandotherPublicRightsotWaywhen HOU03 1055752 7 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 HOU03 1055752 7 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 CitytousefreeofchargeextraspaceonitsstreetlightpolestoinstallCityownedtraffic control signs and decorative banners with prior written approval from Company and provided that such use is consistent with the NESC and other applicable engineeringandoperationalcodesandstandards 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 lightpolesorinitsductsandCityshallindemnifyandholdCompanyharmless 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 auditinquiryorpursuitofacauseofactionconcernsapaymentmadelessthantwo2 years before commencement of such audit inquiry or pursuit of a cause of action CityshallbearthecostsofanysuchauditorinquiryAllbooksandrecordsrelatedto 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 toCityforpastunderpaymentsoramountsdueCompanyforpastoverpaymentsshall include interest calculated using the annual interest rates for overcharges as set by theTexasPublicUtilityCommissionSaidinterestshallbepayableonsuchsumfromthedatetheinitialpaymentwasdueuntilitispaid Section 17 The parties agree to waive any and all claims asserted orunassertedarisingoutofpriorfranchiseagreementsincludingwithoutlimitationthePriorFranchiseexceptthoseclaimsrelatingtoCompanysobligationsasdeterminedin an audit underway as of March 1 2006 Section 18 Nothing contained in this Franchise shall ever be construed asconferringuponCompanyanyexclusiverightsorprivilegesofanynaturewhatsoever Section 19 It shall be Company s obligation as provided in Section 8 hereof tofurnishefficientelectricalservicetothepublicatreasonableratesandtomaintainits property in good repair and working order except when prevented from so doing by HOU03 1055752 7 forces and conditions not reasonably within the control of Company Should CompanyfailorrefusetomaintainitsSystemingoodorderandfurnishefficientserviceatall times throughout the life of this grant except only when prevented from so doing byForceMajeureorshouldCompanyfailorrefusetofurnishefficientserviceat reasonable rates lawfully determined by City throughout the life of this grant exceptingonlyduringsuchperiodsasCompanyshallingoodfaithanddiligentlycontestthe 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 expensesactionsandcausesofactiontotheextentpermittedbytheTexasTort 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 powervestedbylawinCitytoregulateallpublicutilitieswithinCityandtoregulatethelocalratesofpublicutilitieswithinCitywithinthelimitsoftheConstitutionandlawsandto require all persons or corporations to discharge the duties and undertakings for theperformanceofwhichthisFranchisewasmadeisreservedandthisgrantismade subject to all lawful rights powers and authorities either of regulation or otherwisereservedtoCitybyitsCharterorbythegenerallawsofthisState 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 HOU03 1055752 7 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 finalpzding the 14th day of August 2006 Alton E Porter Mayor T V1IIflt II 0181 Mart a A Gillett City Secretary APPROVED ac lZdij Knox W Askins City Attorney HOU03 1055752 7 CenlerPoin TM Energy Georgienne E Nichols President and Chief Operating Officer Houston Electric RE City of LaPorte Ordinance No 2006 2914 To the Honorable Mayor and City Council of the City of LaPorte 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 its terms conditions and provisions Dated the5 day OfJer2006 CENTERPOINT ENERGY HOUSTON ELECTRIC LLC By i1GeornnaENichol Division President and Chief Operating Officer PO Box 1700 Houston TX 77251 1700 Tel 713 207 8432 Fax 713 207 0720 CENTERPOINT ENERGY HOUSTON ELECTRIC LLC CERTIFIED COpy OF RESOLUTIONS I Richard B Dauphin Assistant Secretary of CENTERPOINT ENERGY HOUSTON ELECTRIC LLC the Company a Texas limited liability company HEREBY CERTIFY that the following is a true correct and accurate copy ofresolutions adopted by the sole manager of said Company by unanimous written consent as ofJuly 13 2005 Franchise Agreements WHEREAS the Company wishes to enter into agreements with municipalities in order to use the public rights of way to conduct its business and WHEREAS the sole Manager ofthe Company the Manager deems it advisable and in the best interest ofthe Company that the Company enter into such agreements NOW THEREFORE BE IT RESOLVED that the Manager of the Company hereby authorizes the Chairman the President the ChiefFinancial Officer any Executive Vice President or the Treasurer of the Company each a Senior Officer to negotiate and approve agreements including franchise agreements and franchise ordinances between the Company and any municipality for the use ofsuch municipality s public rights of way to conduct the Company s business the Franchise Agreements and RESOLVED that the execution and delivery ofFranchise Agreements by anySenior Officer prior to the date of these resolutions is hereby ratified confirmed and approved as the authorized act and deed of the Company and Miscellaneous RESOLVED that the Senior Officers are each hereby authorized and empowered from time to time to take such actions and to execute and deliver such certificates agreements instruments notices and other documents or to effect such filings with any and all appropriate regulatory authorities state and federal as may be required or as such officer may deem necessary or advisable in order to carry out the transactions contemplated by and the purposes and intents of the foregoing resolutions all such actions to be performed in such manner and all such certificates agreements instruments notices and other documents tobe executed and delivered in such form as the officer performing or executing the same shall approve the performance or execution thereofby such officer to be conclusive evidence ofthe approval thereofby such officer and by the Company and RESOLVED that the Secretary or any Assistant Secretary ofthe Company are each hereby authorized and empowered to certify and attest any documents which he or she may deem necessary or advisable to consummate the transactions contemplated by the documents heretofore authorized provided that such attestation shall not be required for the due authorization execution and delivery or validity ofthe particular document and RESOLVED that the authority granted to the Senior Officers under the foregoing resolutions shall be deemed to include in the case of each such resolution the authority to perform such further acts and deeds as may be necessary or advisable in the judgment ofsuch officers to carry out the transactions contemplated thereby and all acts and deeds previously performed by the officers or counsel for the Company and agents ofthe Company prior to the date of these resolutions that are within the authority conferred hereby are ratified confirmed and approved as the authorized acts and deeds ofthe Company and RESOLVED that the foregoing powers and authorizations shall continue in full force and effect until revoked in writing by the Company I FURTHER CERTIFY that the foregoing resolutions have not been altered modified revoked or rescinded and that the same remain in full force and effect on the date hereof IN WITNESS WHEREOF I have hereunto set my hand and the seal ofthe Company as of 2006 dLRichardBDauphin Assistant Secretary CenterPoint Energy Houston Electric LLC 050713 Cert Res Franchise Agmts 0604 cert doc 2 CHARTER 7 01 b Ballots Ballots used at recall elections shall conform to the following requirements 1 With respect to each person whose removal is sought the question shall be submitted Shall name of person be removed from the office of name of office by recall 2 Immediately below each such question there shall be printed the two 2 following propositions one above the other in the order indicated For the recall of name of person Against the recall of name of person c Results Ifamajority of the votes cast at a recall election shall be against the recall ofthe officer named on the ballot he shall continue in office for the remainder ofhis unexpired term subject to recall as before If a majority of the votes at such an election be for the recall ofthe officer named on the ballot he shall regardless of any technical defects in the recall petition be deemed removed from office and the vacancy shall be filled as in other vacancies 6 10 District judge may order election Should city council fail or refuse to order any ofthe elections as provided for in this article when ail the requirements for such election have been complied with by the petitioning electors in conformity with this article ofthe Charter then it shall be the duty ofanyone ofthe district judges ofHarris County Texas upon proper application being made therefor to order such elections and to enforce the carrying into effect of the provisions of this article of the Charter TICLE VII FRANCmSES AND PUBLIC UTILITIES 7 01 Enfranchisement a Power of council City council shall have power by ordinance to grant amend renew and extend all franchises of all public utilities of every character operating within the city All ordinances granting amending renewing or extending franchises for public utilities shall not be finally passed until thirty 30 days after the first reading and no such ordinance shall take effect uritil sixty 60 days after its final passage and pending such time the notice and caption of such 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 official newspaper Jf the city and the expense of such publication is to be borne by theproponent ofthe franchise No public utility franchise shall be transferable except with the approval of council expressed by ordinance b Extensions All extensions ofpublic utilities within the city limits shall become a part of the aggregate property ofthe public utilities shall be operated as such and shall be subject to all the obligations and reserved rights contained in this Charter and in any original grant State law references Franchises Vernon s Ann Civ St art 1175 franchise to use streets VT C A Transportation Code 311 071 et seq CHT 27