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Home My WebLink About031828 ORD - 08/13/2019 Ordinance 031828, adopted 8/ 13 /2019 , did not take effect because of administrative errors corrected by AEP . Refer to new ordinance 031889 adopted 10/ 1/2019 . SCANNED ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI AMENDING THE FRANCHISE WITH AEP TEXAS INC. TO CHANGE COMPENSATION OR CONSIDERATION TO BE PAID FOR USE OF THE PUBLIC RIGHTS-OF-WAY; PROVIDING AN EFFECTIVE DATE;PROVIDING FOR ACCEPTANCE BY AEP TEXAS INC.; FINDING AND DETERMINING THAT THE MEETINGS AT WHICH THIS ORDINANCE WAS CONSIDERED WERE OPEN TO THE PUBLIC AND IN ACCORDANCE WITH TEXAS LAW. WHEREAS, Section 5 of the Franchise Agreement by and between the City of Corpus Christi ("City") and AEP Texas Inc. ("AEP"), passed and approved by the Corpus Christi City Council on January 13, 2009, in the form of Ordinance No. 028022, provides for a franchise fee to be paid by AEP to the City in accordance with Section 33.008(b) of the Texas Utilities Code, and the rate provided by said statute is $0.002417 per kWh delivered by AEP to each retail customer whose consuming facility's point of delivery is located within the corporate limits of the City; and, WHEREAS, Section 6 of said Franchise Agreement provides that the City may enact a franchise factor increase once every four (4) years during the term of the franchise, and that no such increase has been enacted since the effective date of the franchise; and, WHEREAS,the City desires to increase the amount of consideration or compensation paid by AEP to City for use of the public rights-of-way by five percent ($0.0001208 per kwh), resulting in an increase in the total franchise fee from a rate of$0.002417 per kWh to a rate of $0.0025378 per kWh delivered by AEP to each retail customer whose consuming facility's point of delivery is located within the corporate limits of the City; and, WHEREAS, it is reasonable to condition the payment of the incremental franchise fee payments by AEP to the City upon the recovery of such payments from AEP's customers; and 031828 WHEREAS, by separate ordinance of even date herewith the City of Corpus Christi is authorizing AEP to recover the incremental franchise fee. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: Section 1. The findings and provisions set out in the preamble to this ordinance are hereby in all things approved and adopted.. Section 2. The existing franchise between the City and AEP is incorporated by reference herein and will be in full force and effect upon the effective date of this Ordinance except to the extent Section 5 thereof is modified by the following sections. Section 3. The amount of the franchise fee due from AEP, instead of that being provided by the existing ordinance and paid in accordance with Section 33.008(b) of the Texas Utility Code, shall be calculated by multiplying a factor of$0.0025378 per kWh times the total kWh delivered by AEP during each billing month to each retail customer whose consuming facility's point of delivery is located within the corporate limits of the City of Ingleside. Section 4. The change in the franchise fee rate provided by Section 3 above is expressly conditioned upon AEP's ability to recover the additional franchise fees paid to the City. In the event that the Public Utility Commission of Texas ("Commission') or a court of competent jurisdiction finds that any portion of the franchise fees calculated under Section 3 above may not be recovered by AEP from its customers or in some manner prevents AEP from recovering said franchise fees, this Ordinance shall not obligate AEP to pay to the City of Corpus Christi any amount above the amount AEP is allowed to recover from its customers in accordance with Section 33.008(b) of the Texas Utility Code. If the Commission or court of competent jurisdiction orders AEP to refund to customers any amounts collected for the franchise fees paid hereunder, such amount refunded shall be a credit against future franchise fees owed by AEP to the City of Corpus Christi. Section 5. The increased rate provided by Section 3 above shall be effective for any delivery of electricity that will be billed to the customer beginning in the January 2020 billing cycle and in subsequent billing cycles. Section 6. This Ordinance shall take effect upon its final passage, provided that AEP shall,within thirty(30)days from the final passage of this Ordinance,file its written acceptance of this Ordinance with the Office of the City Secretary. Section 7. It is hereby officially found and determined that the meetings at which this Ordinance was read and passed were open to the public as required by law and that public notice of the time, place and purpose of said meetings was given. READ, CONSIDERED, PASSED AND APPROVED, on first reading, this p9 day of C%r , 2019. READ,CONSIDERED, PASSED AND FINALLY APPROVED, on second reading, this le'day of / , 2019. CITY OF CORPUS CHRISTI BY: 0( Jo cComb, Mayor ATTESTED: BY: Ri�CaQ� ebe ca L. Huerta, City Secretary APPROVED AS TO FORM: BY: Y7LX2&4 Miles 2P4;'4. • Risley, City Atto 3 That the foregoing ordinance was read for the first time and passed to its second reading on this the r (day of (. yj,,,( , 2019, by the following vote: Joe McComb 0 ' Michael Hunter a (l Roland Barrera Ben Molina Rudy Garza /,dpi%._.' Everett Roy ;, Paulette M. Guajardo 0 ' Greg Smith �r/ Gil Hernandez lT J at the foregoing ordinance was read for the second time and passed finally on this the / -,5 day of ,t 2019,by the following vote: 01)4€44_/fJoe cComb �� Michael Hunter Roland Barrera 01—.- Ben Molina r' - Rudy Garza Everett Roy �. Paulette M. GuajardoGreg Smith It_ Gil Hernandez 040j4(j.e.-) _ PASSED AND APPROVED on this the /t41 day of ,2019. ATTEST: 10e,/eAt-k„,,vt-eN A.., viA-Gt-e-w-t------ Retie ca Huerta J.- cComb City Secretary • EFFECTIVE DAT g HIc1 031828 4 STATE OF TEXAS § COUNTY OF NUECES § I, the undersigned, City Secretary of the City of Corpus Christi, Texas, hereby CERTIFY that the above and foregoing is a true and correct copy of an ordinance finally passed, adopted and approved by the City Council of the City of Corpus Christi, Texas, at a meeting duly and regularly called and held on ` I IAsh 3, 2019. `J sr A_0101,1-519. IN TESTIMONY WHEREOF, witness my hand and seal of office, this.- day of t/111 .. 019. Rebecca L. Huerta, City Secretary of the City of Corpus Christi, Texas 5