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HomeMy WebLinkAboutOrdinance 13355C i ' ~ ORDINANCE NO ~ 3 3 ~i S AN ORDINANCE GRANTING TO DENTON COUNTY ELECTRIC COOPERATIVE, INC., DOING BUSINESS AS COSERV ELECTRIC, A FRANCHISE FOR THE PURPOSE OF USING THE STREETS AND PUBLIC WAYS OF THE CITY OF FORT WORTH, TEXAS, IN CONNECTION WITH ITS ELECTRIC UTILITY SYSTEM; PRESCRIBING THE CONSIDERATION THEREFOR; PROVIDING FOR PUBLICATION; PROVIDING AN EFFECTIVE DATE, PROVIDING A TERM; PROVIDING FOR ACCEPTANCE BY DENTON COUNTY ELECTRIC COOPERATIVE, .INC. AND FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW WHEREAS, Denton County Electric Cooperative, Inc , d/b/a CoServ Electric, hereinafter called "Cooperative", is now and has been engaged m the electric utility business m the State of Texas and in furtherance thereof, has erected and maintained certain items of its physical plant in the City of Fort Worth, Texas, hereinafter called "City", pursuant to such rights as may have been granted rt by and under the laws of the State of Texas, and subject to the reasonable exercise of the police powers granted by and under the said laws to the City; and WHEREAS, rt is hereby found and determined by the City Council of the Crty that rt is m the best interest of the City that a franchise be awarded to the Cooperative stating the agreement between the Cooperative and the Crty under which the Cooperative may use the streets, alleys and other public rights of way to maintain and construct rts physical plant m the Crty; and WHEREAS, the City Council finds that the Cooperative fully meets all the legal, character, financial, and technical qualifications, as well as all other qualifications necessary to assure that adequate and reliable electric utility service is provided to rts customers within the Crty; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH 1 GRANT OF FRANCHISE. There is hereby granted to the Cooperative the right, privilege and franchise to construct, extend, maintain, use and operate in, along, under, on, over, through, above and across the present and future public streets, alleys, highways, easements, parks and other public places within the City an electric utility system, consisting of such poles, lines, wires, towers, anchors, cables, manholes, conduit, and other structures and appurtenances as may be necessary or convenient for the transmission, distribution and sale of electric energy m the City ("System") 2. FRANCHISE FEES. As compensation for the right, privilege and franchise herem granted, the Cooperative shall pay to the City a sum of money equal to four percent (4%) of the Cooperative's gross receipts from the rendition of electric fight, heat, power, and other services within the City, but not to include the gross receipts from the sale of electric power and energy to other electric utilities for resale, said compensation being payable on a quarterly basis. The first payment hereunder shall be due and payable on or before the last day of the month following the Effective Date of this Ordinance, and shall be based upon the Cooperative's said gross receipts during the calendar quarter ended June 30, 1997, and shall be payment for the right, privilege and franchise herem granted during the calendar quarter ending September 30, 1997 Subsequent payments hereunder shall be due and payable on or before the last day of the first month following the end of the calendar quarter upon which said payment is based and shall be payment for the right, privilege and franchise herein granted during the calendar quarter in which the payment is due and payable, as follows Payment Due Quarter Upon Which Quarter For Which Date Payment is Based Payment is Made October 31 July 1 -September 30 October 1 -December 31 January 31 October 1 -December 31 January 1 -March 31 Apri130 January 1 -March 31 April 1 -June 30 July 31 April 1 -June 30 July 1 -September 30 All payments due hereunder shall be made by electronic funds transfer Said payments shall be made by the Cooperative and accepted by the City as full payment for the right, priviiege and franchise of using and occupying the streets, alleys, highways, easements, parks and other public places within the Crty, and such other charges connected with such use as rentals, supervision and inspection, or occupation charges, and m lieu of and shall be accepted as payment for all of the Cooperative's obligations to pay municipal charges, fees, rentals, wire taxes, inspection fees, easement taxes, franchise taxes, or other charges and taxes of every kind, except only the usual general or special ad valorem taxes which the City is authorized to levy and impose upon real and personal property, sales and use taxes, special assessments for public improvements, and expenses incurred by the City in rate cases. 2 3. CONSTRUCTION REQUIREMENTS. 3.1 Land Acquisition. Cooperative shall provide the City's Director of Transportation and Public Works with wntten notice not less than thirty (30) days pror to Cooperative's acquisition of any interest m real property for the installation of additional System facilities or relocation of existing System facilities, or any other equipment or facilities along or adjacent to any existing or proposed public rght-of--way as reflected on the City's then current Master Thoroughfare Plan. The City's Director of Transportation and Public Works or authonzed representative will review the proposed acquisition for potential conflicts. If the Director of Transportation and Public Works or authonzed representative determines that the proposed acquisition will conflict or interfere with the Master Thoroughfare Plan or any proposed or future developments, the City will notify the Cooperative of the potential conflict or interference Thereafter, the Crty and the Cooperative will endeavor m good faith to resolve the potential conflict or interference. If the Cooperative does not notify the City as required herein, the Cooperative, at its own cost and expense, shall be required to relocate its respective System facilities m order to resolve any such conflict or interference. In no event shall the City be responsible to Cooperative for any compensation or liability for damages due to any such relocation. 3.2. City Review of Plans. Before the Cooperative constructs, extends, replaces or performs any other type of construction work to its System, Cooperative shall file with the City's Director of Transportation and Public Works a wntten work description, including as-built scale drawings, showing the location and estimated depth of the facilities. The plans will be reviewed by the Director of Transportation and Public Works and any comments will be provided to the Cooperative within ten (10) working days. Crty agrees to expedite its review when conditions warrant. Before the Cooperative repairs existing facilities, the Cooperative shall give notice to the City's Director of Transportation and Public Works as to the time and location of the proposed repairs. The Cooperative will provide adequate advance notice, based on the size and scope of the work to be performed, either m writing or m person. Daily work schedules shall be provided to the Crty m advance of the initiation of such daily work. When an emergency occurs, repairs shall be performed by the Cooperative and notice shall be given to the Director of Transportation and Public Works within twenty-four (24) hours following emergency repairs. 3.3. Standards. All work performed by Cooperative, its contractors or subcontractors, mthe public rights-of--way and other surfaces will be performed m accordance with the City's Standard Specifications for Street and Storm Dram Construction. The Crty may inspect any and all street repairs. All work done m connection with the laying, maintenance, construction, 3 operation and replacement of the System or any portion thereof shall be m compliance with all federal, state and local laws, ordinances, rules and regulations. 3.4. Third Party Interests. Cooperative shall use rts best efforts to locate, install and maintain its System m a manner that does not endanger the life of any person, interfere with the public convenience or with any improvements made by the City, or hinder or obstruct the free use of streets, sidewalks, easements or other City property If the Cooperative must perform or cause to be performed any work on a public nght-of--way or other public place, or so closely adjacent to such places as to create hazards for the public or the Cooperative, its employees, contractors or subcontractors, Cooperative shall provide construction and maintenance signs and sufficient bamcades at work sites to protect the public, equipment and workers. The application of traffic control devices shall be consistent with the standards and provisions of the latest addition to the Texas Manual on Uniform Traffic Control Devices. Approprate waning lights shall be used at all construction and maintenance zones where one or more traffic lanes are being obstructed durng nighttime conditions. 3.5. Maintenance and Repairs at Construction or Work Sites. The Cooperative shall repair, clean up and restore all public rghts-of--way and other surfaces disturbed dunng the construction and repair of its System and shall warrant the repairs and restoration of such rghts-of--way and other surfaces for a penod of two (2) years from the date of completion of same. Such repairs, clean up and restoration shall return the public rghts-of--way and other disturbed surfaces to substantially the same condition they were in before the Cooperative's work began. The detennmation that the public rghts-of- way and other surfaces have been returned to substantially the same condition shall be made by the City's Director of Transportation and Public Works or authonzed representative. 3.6. Removal of Dangerous Facilities. The City shall have the power at any time to order and require the Cooperative, at Cooperative's own cost and expense, to remove or abate any System facility or equipment that is dangerous to life or property If, after notice, the Cooperative fails or refuses to comply with the City's order, the City shall have the power to remove or the facility or danger, and Cooperative shall reimburse the Crty for rts costs and expenses m such removal or abatement upon receipt of a statement from the City In no event shall the City be responsible to Cooperative for any compensation or liability for damages due to any such removal or abatement, whether made by the Cooperative or the City 3.7 Relocation of Facilities Due to Construction by Citv Upon receipt of wntten notice from the City, Cooperative, at rts own cost and expense, shall lower, relocate or relay any System facilities located m City rghts-of--way where necessary due to street construction or street reconstruction by or on behalf of the 4 Crty, or due to the installation, construction or relocation of City utility fines, including but not limited to, water, samtary sewer, storm drams, street fights and traffic signal conduits, or due to any other work m or under the City rights-of--way If the Cooperative fails or refuses to comply with the City's request, the City shall have the power to lower, relay or relocate, or cause to be lowered, relayed or relocated, the affected or interfering facilities in the System and Cooperative shall reimburse the City for its costs and expenses for such upon receipt of a statement from the City In no event shall the City be responsible to Cooperative for any compensation or liability for damages due to any such lowering, relaying or relocation of System facilities, whether made by the Cooperative or the City 4 BOOKKEEPING AND AUDITS. The Cooperative agrees to make available for audit by the Crty the Cooperative's records reflecting amounts of its gross receipts from the rendition of electric fight, heat, power, and other services, within the Crty, but not to include the gross receipts from the sale of electric power and energy to other electric utilities for resale, the basis for the Cooperative's franchise payments to other mumcipahties. The City's right to audit the Cooperative under the provisions of Section 4 hereof shall be m addition to the City's rights to audit the Cooperative under provisions of the Public Utility Regulatory Act and the Crty Charter and Section 4 hereof shall not be deemed to limit those additional audit rights. 5. SEVERABILITY The City Council declares and the Cooperative agrees that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any section, paragraph, sentence, clause or phrase of this ordinance shall be declared invalid by the final and valid judgment of a court of competent jurisdiction, such invalidity shall not affect any of the remaining sections, paragraphs, sentences, clauses or phrases of this ordinance, since the same would have been enacted by the City Council without such invalid section, paragraph, sentence, clause or phrase. 6. NON-DISCRIMINATION AND EOUAL OPPORTUNITY 6.1 The Cooperative agrees to set goals for contracts to be entered with qualified Fort Worth minorities, women and other residents to provide goods, equipment and services to the Cooperative and to comply with the City's Minority/Women Business Enterprise Ordinance. 6.2. The Cooperative agrees to set goals for supervisory and mid-management fobs to be made available by the Cooperative to qualified Fort Worth minorities, women and residents. To this end, the Cooperative agrees to faithfully adhere to all applicable 5 . ,, federal, state and city rules and regulations pertaining to non-discrimination, equal employment and affirmative action. 6.3. During the term hereof, the Cooperative agrees to share information developed m Sections 6 1 and 6.2 upon request of the Crty 7 PUBLICATION The City Secretary of the City of Fort Worth is hereby directed to publish this Ordinance in its entirety once a week for four (4) consecutive weeks within a period of thirty (30) days after its passage m the official newspaper of the Crty, as required ~by Section 2 of Chapter XXV of the Crty Charter of the City of Fort Worth, Texas. 8. EFFECTIVE DATE AND RENEWALS. This franchise shall commence on the Effective Date hereof and expire on June 30, 2008 Unless written notice is given by either party hereto to the other not less than sixty (60) days before the expiration of this franchise, rt shall automatically renew for an additional period often (10) years from such expiration date and shall automatically renew thereafter for like penods until canceled by written notice given not less than sixty (60) days before the expiration of any such renewal penod. 9 ACCEPTANCE BY COOPERATIVE. The Cooperative shall; within fifteen (15) days from the passage of this ordinance, file its written acceptance of this ordinance with the Office of the Crty Secretary in substantially the following form To the Honorable Mayor and City Council Denton County Electric Cooperative, Inc. (the Cooperative), actor by and throu h the undersigned authorized officer, hereby accepts, on this / day of 1998, Ordinance No l 335 granting a franchise th Cooperative. DENTON COUNTY ELECTRIC COOPERATIVE, INC d/b/a COSERV ELECTRIC sy~ President 10. OPEN MEETING. It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. ADOPTED by the City Council of the City of Fort Worth, Texas, this L~ day of ' .~z _, 1998 APPROVED AS TO FORM AND LEGALITY: Assistant City At ey Date_2-26-y~ ADOPTED a~ - / ?-`l ~ EFFECTIVE _ ~~~ l ~i ~~~o ~_.-- City of Fort Worth, Texas M,'Ayar and Council CommunicAt~an DATE ~ 2/17/98 REFERENCE NUMBER **G-12136 LOG NAME 02COSERV PAGE 1 of 1 SUBJECT ADOPTION OF ORDINANCE GRANTING A FRANCHISE TO DENTON COUNTY ELECTRIC COOPERATIVE, INC D/B/A COSERV RECOMMENDATION It is recommended that the City Council adopt the attached ordinance granting a new franchise to Denton County Electric Cooperative Inc. d/b/a CoServ for a period of ten years ending June 30, 2008 DISCUSSION Denton County Electric Cooperative, Inc. d/b/a CoServ (CoServ) operates an electric distribution system in parts of Denton County and Tarrant County Their service territory includes areas which have been annexed by the City of Fort Worth at various times since 1987 Presently, CoServ provides electric service to less than fifty (50) accounts inside the city limits. That number is expected to grow Accordingly, CoServ has requested"a franchise to provide electric utility service in Fort Worth Staff has negotiated a franchise agreement with CoServ modeled after the City's agreement with TU Electric. The attached Ordinance contains the following provisions. • The franchise expires on June 30, 2008, which is the date of expiration for the TU Electric franchise. • CoServ will pay to the City a franchise fee of 4% of its gross revenues from the retail sales of electricity in the City • The City receives payments within 30 days after the end of a calendar quarter and as compensation for the following calendar quarter • CoServ has agreed to set goals concerning contracting and employment for qualified Fort Worth minorities, women and other residents and upon request to make information available to the City concerning CoServ's contracting and employment activities. • A severability clause has been included which provides that if any provision of the franchise is declared unconstitutional, illegal or unenforceable, the other provisions of the franchise shall remain in force FISCAL INFORMATION/CERTIFICATION The Revenue Office of the Fiscal Services Department will be responsible for collection and depositing of fees due the City under this ordinance. MG.m Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) GG01 421372 0134010 ~~ Charles Boswell 8511 ~~~ Originating Department Head: p~~ Charles Boswell 8511 (from) ~a~N~ Additional Information Contact: ~ r Danny Reed 6145 Adopt®d ~3~na~~ ~a~. .35